Airbus Made in China

Construction of an assembly line for European aircraft maker Airbus A320 planes began on May 15 in north China’s port city Tianjin with a ceremony to mark the occasion.

The plant in the Tianjin Binhai New Area, the first for Airbus outside Europe, is expected to start operating in August next year and have an annual capacity of 44 aircraft in 2011, sources with the project said. Total investment in the project is estimated at 8 billion to 10 billion yuan.

The assembly plant is a joint venture between Airbus and Tianjin Zhongtian Aviation Industry Investment Co., a Chinese alliance of China Aviation Industry Corp. I, China Aviation Industry Corp. II and Tianjin Bonded Zone Investment Co.

Airbus will hold a majority 51 percent stake in the Tianjin assembly facility, with the rest held by Tianjin Zhongtian Aviation Industry Investment Co.

Competition Open for 3G

China’s Ministry of Information Industry approved on May 15 the use of European and American standards for third generation (3G) mobile phones that are rivals to China’s homegrown TD-SCDMA.

China’s homegrown TD-SCDMA has been called the “Chinese 3G standard,” which passed a series of tests organized by the ministry last year. By adding the two foreign standards to the Chinese market, the government has consolidated its “technology neutral” stance and offered an open market for different technologies, said analysts.

The government has promised to provide 3G mobile communications services in time for the 2008 Beijing Olympics. According to analysts the homegrown standard is most likely to be given the first license.

What to Invest In

The Chinese Government will look kindly on outbound investment in four sectors-overseas resources, infrastructure, research and development and service industries, said Zhang Xiaoqiang, Vice Minister of the nation’s top economic planning body on May 15.

“The government will offer preferential diplomatic, forex, tax, customs, credit and insurance policies for companies investing in these sectors,” said the Vice Minister of the National Development and Reform Commission.

He said investing in the four recommended sectors would help China solve economic bottlenecks, upgrade industrial structures, promote exports, train human resources and sharpen the country’s competitive edge in international trade.

China’s outward investment topped $16 billion last year, up 32 percent on the previous year to rank 13th in the world, up from 17th in 2005.

Essential Monetary Tools

China will continue to use monetary instruments to maintain macroeconomic stability, China’s central bank said on May 17.

“We will keep using monetary policy instruments and may consider other instruments to maintain macroeconomic stability in China,” Governor of the People’s Bank of China Zhou Xiaochuan told the press right after the annual board meetings of the African Development Bank closed on May 17.

Zhou noted China’s macro-economic stability is very important both for the nation and for its impact on the world economy.