Spending Spree

The State Council has approved a plan to invest 2 trillion yuan ($292.2 billion) in railway construction as an additional stimulus for the country's economic growth, the Ministry of Railways (MOR) said.

The investment is also part of the government's plans to extend the country's railway network from the current 78,000 km to more than 120,000 km by 2010. China's railway network is one of the most extensive in the world, but has come under pressure as the nation's economic boom has enabled more citizens to travel.

The total capital infusion is likely to be higher than the planned amount because more investment opportunities might emerge, Wang Yong, MOR spokesman, told Xinhua News Agency.

Analysts say the investment spree will spur the domestic economy in light of the country's dismal real estate market and overseas economic downturns that have reduced foreign demands for Chinese products.

Intel Eyes Clean China

Intel Capital Co. Ltd., an investment arm of the chip giant Intel Corp., has tapped into China's clean technology sector with its purchase of a $20-million stake in the domestic solar energy firm Trony Solar Holdings Co. Ltd.

The investment will be a catalyst for Intel to become a leader in local clean technology innovation as China's renewable energy industry experiences rapid development, Cadol Cheung, Managing Director of Intel Capital Asia Pacific, said in a statement.

Shenzhen-based Trony Solar, founded in 1993, is one of the country's biggest manufacturers of thin-film solar energy equipment. It will use the investment to increase its production and research and development of clean technologies, according to a recent China Daily report.

Outsourcing in China

Computer Sciences Corp. of the United States, one of the world's largest IT outsourcers, announced on October 28 that it would build a new delivery center in China as the turbulent global financial crisis forces more Western companies to outsource their businesses to the country to reduce operating costs.

"Outsourcing will increase in difficult times as the financial crisis pushes companies to become more cost-effective," Michael Laphen, a senior manager with Computer Sciences Corp., told the local press. "We expect further robust growth from China."

The new delivery center, located in Tianjin, will open next spring and will serve the company's domestic and multinational clients in China.

Logistics Marriage

The State Council has approved the merger of state-owned Sinotrans Group and China Changjiang National Shipping Group Corp. (CSC Group), two centrally-administered state-owned enterprises, according to a report by Shanghai Securities News. The report said the merger would be officially announced within the next two months and that the merged entity would be named Sinotrans CSC Group.

Sinotrans Group is the country's largest logistics company, and the largest shareholder of Hong Kong-listed Sinotrans Ltd. and Sinotrans Shipping Ltd.

CSC Group is the country's largest river shipping company and owns the Shanghai-listed Changjiang Shipping Group Phoenix Co. Ltd. and Nanjing Water Transport Industry Co. Ltd.

Venture in Chad

China National Petroleum Corp. (CNPC), the parent of PetroChina Co. Ltd., has started to build a joint venture refinery in Chad.

CNPC holds a 60-percent stake in the joint venture with its Chad partner taking the remainder.

The refinery, located north of N'Djamena, the country's capital, is designed to process 1 million tons of crude oil per year and produce around 700,000 tons of gasoline and diesel as well as 20,000 tons of kerosene annually. The refinery is slated to start operations in 2011.

Chad has an annual crude capacity of around 8 million tons, but imports all its refined oil products.