China's Commission of Science, Technology and Industry for National Defense issued a circular on August 6 granting private businesses access to the military industry.

Private businesses will be allowed to invest in military infrastructure construction, conduct scientific research for national defense projects and weaponry production, participate in the regrouping of military firms and cooperate with military firms to develop technology for military and civilian use.

The move aims to facilitate a better use of government outlay for national defense and take advantage of private firms' financial and technological resources, said the circular.

China has been gradually removing the long-standing monopoly of state capital in its military industry since 2005 when private firms were allowed to produce unimportant military products.

More Financial Service for Farmers

China's banking regulators further eased market access for banks to rural areas and removed some obstacles to the development of rural financial services, in a move to promote rural development.

All banking institutions are allowed access to rural areas, according to a new guideline, published on the website of the China Banking Regulatory Commission, that aims to provide more sophisticated and tailored loan services for rural communities and businesses.

Six provincial areas had previously been included in a pilot program to allow foreign and domestic banking capital to invest in, purchase or establish banking institutions in rural areas, according to an earlier guideline issued at the end of 2006.

Forerunners of Brisk Auto Industry

China's top 16 automotive groups chalked up a two thirds increase in first-half combined profits, boosted by buoyant vehicle sales, according to data from the China Association of Automobile Manufacturers.

Their post-tax profits totaled 30.2 billion yuan in the first six months, up 65.8 percent from a year ago. The pace slowed slightly from 69.9 percent in the first quarter.

From January to June, Chery Automobile, the No.7 Chinese automaker by sales and partner of Chrysler, posted the fastest profit growth at 210.6 percent of the 16 companies.

Top seller Shanghai Automotive Industry Corp., which has tie-ups with General Motors and Volkswagen, saw its profits jump by 48.4 percent.

Robust Trade With Hong Kong and Taiwan

The Chinese mainland saw its trade with Taiwan, Hong Kong and Macao continue to rise in the first half of the year, said sources with the Ministry of Commerce on August 7.

Trade volume across the Taiwan Strait rose 10.1 percent year-on-year to $55.3 billion in the January to June period, with the mainland's exports up 15.1 percent to $11 billion and imports up 9 percent to $44.3 billion.

By the end of June, the island had invested an accumulative $44.6 billion on the mainland, taking a 6.2-percent share in the total investment the mainland received from overseas.

With a 40.5-percent share and direct investment totaling $290.3 billion, Hong Kong maintained its position as the biggest investor on the mainland.

In the first half, the mainland's exports to Hong Kong surged 24.3 percent to $83.9 billion, while imports rose 12.8 percent to $5.79 billion.