Inflation Worries

The People's Bank of China (PBOC) is concerned about inflationary pressure and is ready to make use of a range of monetary policy tools to curb price rises, according to Yi Gang, Assistant Governor of the central bank on June 27.

China has seen its consumer price index (CPI) exceed the benchmark line of 3 percent set by the central bank-in May, it hit a two-year high of 3.4 percent, after reaching 3 percent in April.

People have been expecting the central bank to raise interest rates or take other tightening measures to rein in rising prices.

The central bank will make proper use of the tools to control inflation and keep price levels and economic growth stable, Yi said. He added that increased asset prices would not be a factor in taking tightening measures.

A Higher Ranking

China overtook Russia and Pakistan to rank third in the world after India and the United States in the production of dairy products in 2006, China Securities Journal reported.

China's production of dairy products grew 15 percent to reach 32.9 million tons in 2006, said Liu Chengguo, Director of the Dairy Association of China.

Liu attributed the rapid development of the country's dairy sector to a fast growth in the sector's processing capacities.

Both industrial output and sales revenue of major dairy processing companies in 2006 were seven times the 1998 figures, standing at 107.4 billion yuan and 104.1 billion yuan respectively, according to Liu.

Old Medicine's New Market

China's military medical academy announced that it would license a British company to use the patent of its new anti-dementia drug based on Traditional Chinese Medicine (TCM), opening up a new avenue to the international market for TCM products.

After 10 years of effort, a group led by Ma Baiping of the Academy of Military Medical Sciences (AMMS) of the People's Liberation Army has finished pre-clinical research for its new anti-dementia drug, dubbed NJS, which is derived from TCM substances.

Under the deal, the academy will sell the patent license to UK-based Phytopharm, disclose key NJS technologies, and rely on the pharmaceutical firm to do clinical trials and promote the product in the international market.

"This is the first time China has sold a TCM patent license to a foreign firm and represents a major stride toward international credibility," said AMMS President Sun Jianzhong.

Fly Your Flag

Ocean-going ships flying foreign flags of convenience will be given tax exemptions as an incentive to register in the country, a top official with the Ministry of Communications said on June 27.

Effective July 1, Chinese-owned ships registered overseas by the end of 2005 will be allowed to register domestically-in Shanghai, Tianjin and Dalian-and be exempt from customs duty and import value-added tax for the vessels.

Registration in the country will mean improved maritime security and better protection of national interests, said Vice Minister Weng Mengyong.

Sea cargo accounts for more than 90 percent of the country's foreign trade, 95 percent of crude oil imports and 99 percent of iron ore imports, Weng said.

Green Prize

China's Beijing Shenzhou Daxu Bioenergy Technology Co. was rewarded the UK Ashden Award for Sustainable Energy, the world's leading green energy prize, recently.

The Chinese company won the first prize of the Ashden Award for its creation of a stove that burns crop waste and wood more efficiently.

The Daxu stove is designed to not only burn crop waste with 40 percent efficiency, but hardly produces any smoke and cuts cooking and heating costs by 50 percent.

If it replaces a traditional coal-burning stove, it can save around 8 tons of CO2 emissions per year.