Analysts also said they believe that deteriorating sales of homes, automobiles and home appliances have had a negative effect on steel producers' profitability.

Reshaping China's Dairy Industry

The melamine-tainted milk scandal ignited a reshuffle of the country's dairy industry. To date, there has been no public announcement on which company has taken business from Sanlu Group, a Shijiazhuang-based milk producer whose baby formula claimed several lives.

There is speculation that Beijing-based Sanyuan Food Co. Ltd. and Heilongjiang-based Wondersun Dairy Co. Ltd. will purchase part of Sanlu's factories. Both said they were in negotiations with Sanlu, although neither has made any progress in the talks.

As of November 2, about 130 Chinese milk factories remained closed as a result of the tainted dairy products scandal, according to the Ministry of Industry and Information Technology (MIIT). This means that 20 percent of the country's milk factories still have not resumed operations.

Zhang Li, a senior official at MIIT, told Xinhua News Agency that the task of better regulating the milk industry remained arduous, because some dairy manufacturers lacked adequate testing equipment partly because of its cost.

Despite rising production, market confidence is still weak, Zhang said. For instance, last month's liquid milk inventories at Mengniu Dairy Co. Ltd. and Yili Industrial Group Co. Ltd., China's two leading dairy producers, were 1.4 times and 3.6 times higher, respectively, than in September.

Tracking Capital Inflows

The State Administration of Foreign Exchange (SAFE) recently announced it would enforce a stricter registration process to monitor cross-border capital flows more effectively. The new rules aim to better supervise cross-border capital flows and balance international trade, SAFE said.

According to the new rules, from November 15, Chinese companies must report pre-payments on imported goods within 15 working days after they sign contracts. They also have to declare payments 15 working days before funds are transferred. Companies also are required to provide more detailed reports about their deferred payments on exports.

Analysts said the stricter registration system would help prevent the abnormal movement of funds in and out of the country and could stabilize the yuan amid the global economic turbulence.

International SOS Expands in China

Medical services giant International SOS Inc. recently opened a new facility in Beijing to expedite its further expansion in the country. International SOS is a global provider of medical assistance, international healthcare and security services and outsourced customer care.

The company has been expanding throughout China since 1991. It now operates two 24-hour alarm centers in Beijing and Hong Kong and four medical clinics in Beijing, Nanjing, Tianjin and Shekou. It provides medical support to clients in more than 45 locations across China.

"We are committed to delivering the highest-level service and customer care to Chinese people and companies," said Arnaud Vaissi, the company's CEO, at the opening ceremony of the new Beijing facility. "China is a key engine of growth for International SOS, we will continue to invest in our infrastructure and services here."

China's medical service market holds great potential for a boom in the near future despite a possible economic slowdown, because the medical demands of individual and corporate clients here are growing, Vaissi told Beijing Review.

"The U.S. financial crisis has so far not had a significant impact on our global businesses," Vaissi said. "Some U.S. companies have trimmed their medical budgets at home, but more giants are increasing their presence overseas to offset the impact of the crisis."