GDP 11.3% for 2007

China's gross domestic product (GDP) is expected to grow by 11.3 percent in 2007, said the World Bank in its quarterly report on China, released on September 12.

China's GDP grew by 11.5 percent in the first half of 2007 from the same period last year.

The World Bank has previously revised its projection for China's GDP growth rate from 9.6 percent to 10.4 percent in its quarterly report released in May.

The report held that China's economic growth pattern remains unchanged, as continued strong external trade and an investment-driven recovery in domestic demand are still major stimuli behind the rapid growth.

According to the World Bank's estimates, the net external trade has contributed more than one fourth to the aggregate growth, remaining at a high level as in the second half of 2006.

New Air Routes

Air China, the country's largest international carrier, will add flights to Toronto, Rome and 10 other European and North American cities by the end of 2009.

New routes next year will include flights from Beijing to Berlin, Istanbul and Warsaw, according to a draft plan from the General Administration of Civil Aviation of China.

China Southern Airlines will begin five new overseas routes by the end of 2009, including flights to Newark, New Jersey and Moscow.

Chinese airlines plan to add 27 routes to Europe and North America by the end of 2009 as they bid to end losses by winning market share, according to Bloomberg News.

Farmland Forestation Plan Suspended

The Chinese Government has decided to suspend its plan to convert 1.07 million hectares of farmland into forest to meet its pledge of reserving a minimum of 120 million hectares of land for farming during the 11th Five-Year Plan period (2006-10), the State Council said in a statement released on September 10.

In 2005 the government issued a plan to plant trees on 1.3 million hectares of farmland from 2006 to 2010, but the rapid speed of farmland losses have forced the plan to be suspended.

The forestation of some 267,000 hectares of farmland that had been arranged in 2006 would continue, the State Council said. The announcement said that the government would continue to provide subsidies to farmers who have converted their farmland into forest to compensate for their loss of income.

Auto Industry Stands WTO Tests

China's auto industry has been developing vigorously to withstand challenges posed by the country's entry into the World Trade Organization (WTO), according to Zhang Guobao, Vice Minister of the National Development and Reform Commission.

Zhang attributed the good performance of China's auto industry to three factors: the country's sound economic environment, its solid industrial foundation and sharpened competitive edge in the global market for improved product quality.

Statistics show the nation's auto output has maintained fast growth for six consecutive years. From 2001 to 2006, the average annual growth rate of the auto sector reached 26 percent. In 2006, the country's auto output and sales increased by 22 percent and 23 percent to 4.5 million and 4.4 million units respectively.