(XINHUA)

First Chinese F1 Driver

HRT (Hispania Racing Formula One Team) announced on November 6 that Ma Qinghua will become the first Chinese F1 driver. Ma completed practice sessions for the Spanish-based team in Monza, Singapore and Abu Dhabi, where his superior skill earned him a spot on the team. Ma made his debut during a practice session for HRT at the Italian Grand Prix on September 7, making history as the first Chineseborn driver of an F1 car at an event sanctioned by the International Automobile Federation.

Ma was born in Shanghai in 1987 and first drove a racing car at the age of 8. He had won many car racing competitions in Asia before he was announced as a member of the HRT team's Young DriverDevelopment Program in April. Ma is expected to represent HRT as a full-scale grand prix driver.

Trade Conundrum

The 112th session of the Canton Fair (October 15-November 4), China's largest trade fair, witnessed a decline in both participants and turnover.

A total of 188,145 overseas participants from 211 countries and regions signed up to attend the fair, 10.26 percent lower than the last session in the spring, and 10.5 percent lower from the corresponding period last year, said Liu Jianjun, spokesman of the event.

The fair has also seen a fall in its turnover—$32.68 billion—a 9.3-percent decrease compared to the spring session.

Orders from European countries and Japan dropped considerably, while those from emerging markets showed minor declines.

"The double declines have shown China's severe situation in foreign trade," said Liu. "But the good news is that some Chinese enterprises have shown their competitiveness through brand building and innovation."

Shale Gas Subsidies

China will allocate targeted funds from its central budget to subsidize shale gas exploration as part of its efforts to optimize the country's energy sector.

A subsidy of 0.4 yuan ($0.06) will be offered for every cubic meter of shale gas developed during the 2012-15 period, said the Ministry of Finance on November 5.

Local governments may introduce separate incentives according to regional needs.

The exploration of shale gas—an unconventional source of natural gas—has gathered steam in China amid the government's efforts to promote the use of clean energy.

China has rich reserves of shale gas, but expensive exploration costs and sophisticated technological requirements have substantially restrained the sector's growth.

WTO Complaint

China has requested consultations with the EU and certain member states concerning their photovoltaic subsidies, said the World Trade Organization (WTO) on November 5.

It alleges that certain measures affecting the renewable energy generation sector relating to the feed-in tariff programs of EU member states, including but not limited to Italy and Greece, include domestic content restrictions and are inconsistent with" relevant WTO rules, said the statement.

Shen Danyang, spokesman of the Ministry of Commerce (MOFCOM) said that according to the laws of certain EU member states, the electricity generated by photovoltaic installations would be eligible for a specified amount or proportion of feed-in tariff subsidies if the main components of the installations are produced within EU member states.

Shen said in a statement that the illegal subsidy measures had significant adverse effects on the export of Chinese photovoltaic products and infringed upon China's rights as a WTO member.

According to WTO dispute settlement rules, if two parties fail to reach any solution within 60 days, a WTO panel can be established as requested to look into the case and make a ruling.

ODI Accelerates

China's overseas mergers and acquisitions (M&As) have gained traction in recent years as domestic policies encouraged cash-abundant companies to purchase foreign assets amid the worsening euro zone debt crisis, new data indicates.

The number and volume of overseas M&As by Chinese enterprises increased to 208 and $93.09 billion in 2012 from 107 and $13.58 billion in 2007, according to the ChinaVenture Group, a leading research and consulting institute, on November 5.

Wan Ge, an analyst with ChinaVenture, said the European debt crisis allowed more Chinese enterprises to acquire undervalued assets in the European market.

Meanwhile, China's rapid economic rise created massive demand for energy and advanced technology. Energy and mining topped the list for the country's outbound M&As during the first three quarters of 2012.

There are also signs that China is diversifying its outbound direct investment (ODI) from energy industries to other sectors including agriculture.

Eighty-two percent of China's ODI went to energy industries in 2009, but the proportion fell to 60 percent in the first half of this year, according to an Ernst & Young report.

China's ODI in non-financial sectors rose 28.9 percent year on year to $52.52 billion in the first nine months, MOFCOM data showed.

Wind Power Transmission

An expansion project for a power converter station that will allow power to be transmitted from northeast China to north China has been completed, said the State Grid Corp. of China on November 6.

The project will allow the station to transfer up to 3 million kw of power, making the station the world's largest direct-current back-to-back power station, said the company.

The expansion will improve northeast China's ability to transfer power to grids in the cities of Beijing, Tianjin and Tangshan of Hebei Province and improve the allocation of wind power generated in the northeast.

Northeast China has abundant wind sources. The company has predicted that the region's installed wind power capacity will eventually reach 24.34 million kw, accounting for more than 17 percent of its total installed capacity.