A consolidation of the two firms would help expansion-minded Ansteel broaden its presence to the resource-rich western regions, he said.

The only question is whether the two could make a success out of post-merger integrations. Ansteel had acquired the Benxi Iron & Steel (Group) Co. Ltd. However, due to intractable financial disputes, both have adhered to separate operations, watering down the so-called "tie-up."

"But our integrations would be much easier since we share a lot in management and corporate culture," said Zhang Xiaogang, General Manager of Ansteel. "It was Ansteel that helped build Pangang in the 1960s."

Oil Refiner Roars

Sinopec, the country's largest refiner, said in a recent report that its annual refining capacity is expected to grow 6.4 percent this year to reach 507.5 million tons, and further increase to 750 million tons by the end of 2015.

In 2011, three to four oil refining and petrochemical manufacturing bases will be built in regions including the Yangtze River Delta, the Bohai Sea Rim region and the Pearl River Delta, said the report. Each base will have a refining capacity of 20 million tons and ethylene production capacity of 2 million tons.

The Chinese economy is bursting with vitality, jacking up demands for oil, said Ke Xiaoming, a senior researcher at the Sinopec Research Institute of Economics and Technology.

Meanwhile the refiners are now motivated to bump up productions as the country's oil pricing reform provided guarantee for their profits, said Ke. Since early 2009, China has adjusted domestic refined oil prices largely in line with international changes, a remarkable break from past rigid pricing schemes.

Credit Card Concerns

In a nation of savers like China, cash is still king, but plastic is gaining popularity.

From January to March 2010, Chinese banks extended credit card loans of 1.48 trillion yuan ($216.8 billion), an increase of 42.9 percent over one year ago, according to a recent report of the People's Bank of China, the central bank.

Chinese consumers are increasingly paying for an expanding array of goods and services with money they don't have. Card users feel comfortable spending more, and would not perceive consumption as affecting their bank balance. This is good news for policymakers who are pinning hopes on the consumer market to thrive and fill in the blanks left by an export downturn.

However, the credit card boom was not without risks as many cardholders are falling behind their monthly obligations. The credit card debt that was overdue for at least six months was 8.8 billion yuan ($1.3 billion) by the end of March 2010, said the report.

Many profit-hungry issuers recklessly put their credit cards into the wallets of low-income consumers, sowing the seeds of bad debt, said Guo Tianyong, Director of the Research Center of Chinese Banking Industry under the Central University of Finance and Economics.

The regulators have been well aware of the problem and are stepping up tight control over blind card issuance, he said.

E-commerce Booms

The Internet has become a perfect place for commerce in China.

China's e-commerce transaction volume continued its growth streak to reach 1.02 trillion yuan ($149.4 billion) in the first quarter this year, said the iResearch Consulting Group. By the end of March 2010, Chinese Internet users totaled 404 million, the largest in the world.

B2B remains the most vibrant activity, with B2B trade of small and medium-sized enterprises (SMEs) accounting for 52.6 percent of the e-commerce market. Alibaba.com remains the market leader with a majority 59.5 percent of B2B market shares.

Online shopping is also experiencing a surge as Chinese consumers search for bargains on everything from cosmetics to clothes. Online shopping made up 10.1 percent of the e-commerce trade from January to March, and will continue to pick up momentum, said iResearch.

China's online retails have deep potential to explore. The online shopping penetration rate in the country was 26.2 percent in 2009, compared with 67.8 percent in the United States and 57.3 percent in South Korea, said the consulting firm.