RED CAR, GREEN ENGINE: GreenWheel EV Inc., an auto manufacturer devoted to new energy car production, exhibits its pure electricity-driven vehicle at the Eco Expo Asia-International Trade Fair on Environmental Protection in Hong Kong on November 3-6 (CHEN DUO)

Investing Overseas

Chinese companies' overseas investment rose 10.4 percent year on year in the first three quarters this year, even as global investment as a whole dropped sharply, according to Zhang Xiaoqiang, Vice Chairman of the National Development and Reform Commission.

Chinese companies invested $36.3 billion overseas in the first three quarters, excluding investments in financial sectors.

From January to September, Chinese companies invested in 2,246 overseas enterprises in 118 countries and regions.

China has emerged as a major source of foreign direct investment (FDI) outflows. Although global FDI outflows dropped 40 percent year on year in 2009, China's overseas investments rose 14.2 percent year on year to $47.8 billion.

Credit Restrictions

On November 3, the Ministry of Housing and Urban-Rural Development (MHURD) announced that it will block the public housing fund mortgage for third home buyers, a move to further curb property speculation.

The announcement was made in a circular jointly issued by the MHURD, the Ministry of Finance, the People's Bank of China, and the China Banking Regulatory Commission.

The ministry has also placed a restriction on second home buyers—second home buyers with a per-capita living area higher than the local average level cannot apply for the public housing fund mortgage.

Minimum down payments for second homes buyers are no less than 50 percent of the total price, and the public housing fund mortgage interest rate will be slightly more for second home buyers than first home buyers, the circular said.

Calling for Trade

Chinese Vice President Xi Jinping called for further economic and trade cooperation between China and the United States, saying the two countries "share extensive common interests." Xi's remarks were made on November 2 during his meeting with a delegation from the U.S.-China Business Council.

He urged the two nations, especially business communities, to step up their cooperation as one of the means to promote a dynamic and stable world economy.

Bonded Area

The first phase of the largest bonded area in Chongqing was finished on November 2.

The Xiyong Comprehensive Bonded Area, which received State Council's approval in February 2010, was designed to make Chongqing the largest processing trade center in central and west China.

The trade zone covers an area of 10.3 square km, with the first phase occupying 5.67 square km.

The area seeks to become a base for electronics and information technology companies, with a production capacity of 80 million laptop computers by the end of 2015, said Ling Yueming, Vice Mayor of Chongqing.

Auto Co-op

General Motors Co. and its Chinese partner SAIC Motor Corp. Ltd., based in Shanghai, announced on November 3 an agreement to boost cooperative efforts to develop new energy vehicles.

The two companies signed a memorandum of understanding that they will also increase the role of their joint engineering and design group, the Pan Asia Technical Automotive Center, to work on future vehicles and power trains.

In the first 10 months of 2010, SAIC GM sold more than 843,000 vehicles in China.