Export Revitalization

The Ministry of Finance announced on November 17 that a list of 3,770 items will be eligible for a third export tax rebate increase this year as part of the government's 4-trillion-yuan ($586 billion) stimulus package. The order will take effect on December 1. The items are mainly labor-intensive, mechanical and electrical products.

The 3,770 items account for 27.9 percent of the country's total exports, according to a ministry statement.

Besides this, the government will also eliminate export duties on certain types of steel, chemicals and grain products and cut export duties on some fertilizer products, also effective December 1, according to the ministry.

Joining the IDB

The People's Bank of China, the central bank, said on November 18 that China would become an official member of the Inter-American Development Bank (IDB).

The Washington D.C.-based bank approved China as its 48th member country after a protracted voting process.

The entry was "a win-win choice" for the benefit of all sides involved, said central bank governor Zhou Xiaochuan during his meeting with IDB President Luis Alberto Moreno in Washington, D.C.

China and the IDB signed a memorandum of understanding, specifying certain terms and conditions related to China's membership.

China would reportedly contribute $350 million to the IDB to bolster key programs as the world economy comes under pressure.

Trade Rapport

The Ministry of Commerce said on November 18 that it signed a memorandum of understanding with Costa Rica to start free trade area negotiations next January.

Chinese Commerce Minister Chen Deming and Costa Rican Minister of Foreign Trade Marco Vinicio Ruiz reached the agreement on November 17.

China is currently the country's second largest overall trade partner, while Costa Rica is China's second largest trade partner in Central America.

According to China Customs data, bilateral trade between the two countries amounted to $2.87 billion in 2007. China's imports from Costa Rica were $2.3 billion, up 32 percent year on year, while its exports totaled $570 million, a year-on-year increase of 39 percent.

Network Expansion

ZTE Corp. has won a contract worth 1.33 billion yuan ($194.7 million) from China Telecom Corp. to help expand the operator's newly acquired mobile network.

ZTE, the country's biggest listed telecom equipment maker, will provide China Telecom wireless equipment for the CDMA (code division multiple access) network and related services valued at 1.27 billion yuan ($186 million). The other 61 million yuan ($8.9 million) will be used to expand China Telecom's fixed-line network expansion, ZTE said in a statement on November 18.

With the help of this deal, ZTE said it would become the leading player in the domestic CDMA network equipment market.

Business Summit

BusinessWeek, a global business weekly magazine, will hold its 12th BusinessWeek Annual Conference on December 3-4 in Beijing. The annual conference is one of the world's most influential business forums.

Christina Lee, Asia Managing Director for BusinessWeek, said at a press briefing on November 18 that the conference would provide insight for global companies on how to sustain development in hard times.

Meanwhile, the magazine has created a special commission to provide guidance for Chinese businessmen on their career development. The commission will be made up of Chinese economists and top businessmen from a variety of sectors.