However, those robust figures cannot conceal the widening gap between the rich and the poor. The vast number of migrant workers, who have produced most of the world's "Made-in-China" products, are paid minimum wages of 800-2,000 yuan ($117-$293) a month.

Bridging the gap has become an important task for the Chinese Government.

Alcohol Co. Takeover

For the first time in history, a foreign distiller has taken control of a domestic alcohol producer, breaking regulatory barriers.

Diageo Plc. is the maker of a number of liquors well known in China, such as Smirnoff, Johnnie Walker whisky and Baileys. Sichuan Swellfun Co. is a popular Chinese baijiu or spirit producer.

The foreign distiller bought a controlling stake in Swellfun over a period of three years. Diageo Plc. initially paid 202.9 million yuan ($29.7 million) for a 43-percent stake in Chengdu Quanxing Group, the owner of the Swellfun brand, in 2007, later increasing its holdings to 49 percent in July 2008. The company offered to pay 14 million pounds ($21 million) for an additional 4-percent stake in Quanxing on March 1, raising its stake to 53 percent.

Chinese policy forbids a foreign company from controlling famous huangjiu (rice wine) and baijiu brands. But Diageo was able to circumvent restrictions to reach its target.

Baijiu is traditional Chinese liquor produced from sorghum and commonly served at business meetings or family gatherings. Foreign brand liquor such as whisky, gin and wine are mostly served in bars and entertainment venues.

Retail Sales Up

The 100 key retailing enterprises monitored by the Central Government sold 34.56 billion yuan ($5.06 billion) worth of products in January, up 10.03 percent compared to December 2009, according to figures released by the Ministry of Industry and Information Technology (MIIT).

Food sales in January fell 17.44 percent year on year; sales of daily commodities slid 5.69 percent; while sales of garments and cosmetics dropped less than 2 percent.

Jewelry, home appliance and furnishing sales increased 1.91 percent, 6.29 percent and 7.49 percent, respectively, driven by a shopping spree for the Spring Festival, which fell in February this year.

In spite of the month-on-month increase, this year's January sales of the 100 retailers were down 7.11 percent from last year. But MIIT explained that the country's Spring Festival shopping last year was in January, making the comparison base larger.

Soaring Coal Imports

China imported a total of 16.078 million tons of coal in January, surging 438.3 percent from the same month of last year. The amount was the second largest after the 16.385 million tons of imports last December, according to figures from the General Administration of Customs.

While China's coal reserves rank first in the world, companies still seek coal from abroad. Insiders attributed the import surge to domestic coal giants' unwillingness to lower prices, thus forcing thermal power plants to find alternative sources.

Southern regions like Guangxi Zhuang Autonomous Region and Guangdong Province prefer to import coal from the Philippines or Malaysia as the shipping fee from the Southeast Asian nations to south China is less than from the Qinhuangdao Port in the coal-abundant north China.

Li Chengren, a senior researcher at the State Grid Energy Research Institute, said the high coal prices put enormous pressures on power companies, while the latter are already in a weakened position. Li said coal importing will become a trend.

Xiamen Trade Fair

Organizers for the 14th China International Fair for Investment and Trade (CIFIT) announced on February 2 at the first preparatory work conference for the 14th CIFIT that the upcoming fair will feature new highlights. The fair will be held from September 8 to 11 in Xiamen, Fujian Province.

The organizing committee will increase its efforts to arrange a number of specialized exhibitions for tourism, real estate, cultural creative industries, energy efficiency and environmental protection.

This year's CIFIT will also feature a sharper focus on Taiwan. The organizing committee will hold talks with Taiwan investors, host the sixth Straits Travel Fair, the West Taiwan Straits Cities' Development and Cooperation Forum and the third Cross-Straits (Quanzhou) Agricultural Products Procurement Fair. The committee will also stage exhibitions for Taiwan investment projects and commodities and host industry-specific matchmaking symposia for Taiwan-funded enterprises, in addition to continuing to stage the Cross-Straits Economic and Trade Cooperation and Development Forum. Various other events will be organized to foster ties between the mainland and Taiwan.