Global miners are expected to demand a 30-35 percent price increase in iron ores as they push for a new quarterly pricing system linked to the spot market. For much of the past decade, the old benchmark system of annual contracts and price negotiations largely capped iron ore prices below volatile spot prices.

On top of the cost pressure came a string of austerity policies to cool down the property market, which in turn put a squeeze on demands for steel, said Li Xinchuang, Director of the China Metallurgical Industrial Planning and Research Institute. China churned out 560 million tons of steel in 2009, 36 percent of which was absorbed by the property industry.

Signs of lackluster demand are already coming to light. Domestic steel prices have been on a downward trend since April. Prices of deformed steel bars, for instance, dove 10 percent in May, said Luo Bingsheng, Deputy Director of CISA.

Questionable Ranking

PetroChina, the country's biggest oil and gas producer, has overtaken Exxon Mobil to rank first in the latest Financial Times annual list of the world's 500 most valuable listed companies, with a market capitalization of $329.3 billion. This is the first time that a Chinese company has secured the top spot in the 14-year-old ranking. Last year, PetroChina ranked second.

The performance of PetroChina should be a reason to cheer, but suspicions abound about its real competitiveness.

Dong Xiucheng, Deputy Director of the School of Business Administration of the China University of Petroleum, said PetroChina's ranking was due to a slump in market value of U.S. and European companies, which buckled under the weight of the financial crisis.

In addition, the success of PetroChina is more a result of a market monopoly instead of management expertise or technological innovation, said Feng Pengcheng, a senior researcher of the University of International Business and Economics.

There are three Chinese companies in the Financial Times' top 10, with the Industrial and Commercial Bank of China retaining its fourth position and China Mobile falling to No.10 from last year's No.5.

Altogether 45 Chinese companies made the list, and 21 of them are from China's mainland. The Financial Times Global 500, based on listed companies' market capitalization, provides a snapshot of the corporate world.

Going Overseas

Chinese computer maker Lenovo Group is expected to aggressively tap into emerging markets as the company returns to the black.

"We are aiming to expand our market shares in India, Russia, Turkey and Poland to double-digit percentages in the coming year or two from the current 5 percent. We'll then focus on improving profitability in these areas," said Yang Yuanqing, CEO of Lenovo.

The company reported a net profit of $129 million in the fiscal year ending on March 31, gaining steam from buoyant IT demands and effective cost controls. This was a substantial turnaround from the previous year that witnessed a loss of $226.4 million.

The domestic market accounted for 47 percent of its $16.6-billion full-year revenue, which rose 11 percent from a year earlier, said the company.

"I believe this year represents a turning point for Lenovo," said Liu Chuanzhi, Chairman of Lenovo. "We're forging ahead to continue to consolidate our position in China and other markets."

Canadian Cash

China remains the top investment market for Canadian companies, but growing opportunities in India are grabbing Canadian capital, said the Asia-Pacific Foundation of Canada (APF). The assessment was based on a recent survey of more than 504 Canadian companies with a permanent physical presence in Asia.

As for what countries or areas Canadian capital is likely to invest in over the next 12 months, 19.2 percent choose China as the favorite destination while 12.8 percent picked India.

The survey also saw a strong rise of investment interest—from 8 percent in 2005 to 13 percent in 2010—among Canadian companies toward India.

"The economic might of Asia as a whole is a growing reality that Canadian companies ought to explore and seize," said Yuen Pau Woo, CEO of APF.

China remains the top choice, but the appeal of India is growing as the country gains economic clout, he said.