China on December 16 expressed regrets over the World Trade Organization's (WTO) decision to uphold its ruling that a Chinese tariff on auto parts imports violated WTO rules.

China considers auto parts as a complete vehicle if they account for 60 percent or more of the value of a complete vehicle and charges a 15-percent higher tariff on those parts. The measure aims to prevent tax evasion by companies that import whole cars as spare parts to avoid higher tariff rates.

But the United States, the EU and Canada argued that the Chinese tax measure deters automakers from using imported parts to build cars in China, thus violating WTO regulations.

A WTO panel decided in July that China's import practices defied WTO rules. China appealed to WTO against the ruling on September 15.

Easier Home

The State Council, China's cabinet, announced on December 17 a package of stimulus measures aimed at shoring up withering property markets.

According to the package, a series of restrictions on financial institutions that issue loans to second-home buyers will be lifted, a move that will encourage the purchase of apartments in common residential buildings and increase financing for qualified projects.

Second-home buyers can still enjoy the same favorable mortgage policies as first-home buyers as long as the per-capita size of their apartments is smaller than the local average. The government has also dropped business taxes on second-hand home transactions for one year.

Rural Banking

Citigroup Inc., the largest U.S. bank by assets, opened its first lending company on the Chinese mainland on December 16 in central Hubei Province.

The company, located in the province's Gong'an County, has registered capital of 17 million yuan ($2.48 million), and will offer loan services to the county's rural areas which lack funds for development. It also will offer loans to individuals and small enterprises, each of which will be capped at less than 1.7 million yuan ($248,356), Citigroup said in a statement.

Chinese regulators have approved another Citigroup lending company which will open in Chibi, Hubei, in the first quarter of next year.

Powering Ningxia

Construction has started on six coalmine, power and chemical projects in northwest China's Ningxia Hui Autonomous Region as part of an effort to spur the slowing economy, according to a report by Xinhua News Agency.

The projects included three coalmines with a total annual capacity of 22 million tons and three power plants with a combined capacity of 4.4 million kilowatts.

The projects could drive up relevant industries and help boost domestic demand for energy, said Zhang Guobao, Director of the National Energy Administration, to Xinhua News Agency.

Analysts estimate that the projects will be operational in 2011 and create some 45,000 jobs.

Green Autos

BYD Co. Ltd., a Shenzhen-based automaker, on December 15 put on sale the world's first mass-produced, plug-in hybrid electric vehicle for 149,800 yuan ($22,000), gaining an edge over its domestic rivals.

The car can run up to 100 km on its electric engine and shift to a gasoline-powered engine when it runs low on power. Hybrid cars manufactured by Toyota Motor Corp. and General Motors Corp. can be driven only 25 km before they require another recharge.