Economy

Still Strong Momentum in Trade

China’s aggregate trade surplus was expected to surge 42.8 percent from the end of last year to $254.03 billion in 2007, although exports might grow less rapidly, a forecasting agency of the Chinese Academy of Sciences (CAS) has predicted.

The year’s total exports were projected to be $1.20 trillion, up 23.7 percent year-on-year, compared with a rise of 27.2 percent last year. Total imports were estimated around $946 billion, up 19.5 percent from the previous year, said the CAS report.

The surplus with the United States would rise by 23.5 percent to $178.2 billion, with exports hitting $263.6 billion, up 29.8 percent year-on-year.

The European Union will remain the largest trade partner, recording imports of $239.3 billion and exports of $111 billion from China.

Tightened Securities Market Supervision

The country will focus on cases of stock price manipulation via disclosure of false information and insider trading in an effort to crack down on illegal activities in the securities market, said sources with the China Securities Regulatory Commission (CSRC).

The commission said that company violators in the past had tended to exaggerate profits, but new trends saw companies trying to manipulate their stock price by disclosing false information, and engage in insider trading.

The recent case of Hangxiao Steel, which had its share price soar after claims of a huge overseas contract, was cited.

The commission was looking into detection mechanisms to be operated in cooperation with local bureaus and stock exchanges, said an unnamed CSRC official.

Chinese shares soared to a new high on April 30, despite coming a day after the announcement of the fourth deposit reserve ratio rise this year, targeted at cooling the booming economy.

Spurring Grain Growing Enthusiasm

China will maintain the lowest procurement price for grain-not lower than the 2006 level-in 2007, sources with the National Development and Reform Commission said on April 29.

Since 2004, China has carried out a bottom price system for grain procurement, in order to ensure stable grain production, safeguard farmers’ interests and protect their enthusiasm for farming. The nation will continue to implement the policy this year, the sources said.

Given it has the world’s largest population of 1.3 billion, China has for years attached great importance to grain security and arable land protection.

Last year China produced more than 490 million tons of grain, realizing an output growth for three consecutive years.

Incentives for Cross-Strait Economic Ties

A total of 13 new policies were announced at the April 29 closing ceremony of a two-day cross-strait forum, co-sponsored by the Communist Party of China and the Chinese Kuomintang Party, Taiwan’s major opposition party.

Under the new policies, Taiwan’s shipping and road transport companies are allowed to set up wholly owned companies or joint ventures on the mainland.

Enterprises from Taiwan are also encouraged to directly invest in the construction and operation of ports and road projects on the mainland.

Taiwan shipping companies, engaged in direct passenger transport between coastal cities in Fujian of the mainland and Jinmen, Mazu and Penghu in Taiwan have been authorized to set up agencies and sell tickets on the mainland.

Airline companies in Taiwan are encouraged to expand cooperation with mainland counterparts in aircraft maintenance, cargo storage, market development and code sharing.

The mainland also promised to improve laws and regulations to allow Taiwan aviation companies the ability to launch joint ventures to run airline companies, build airports and produce on-vehicle materials on the mainland with mainland partners.