Containing Layoffs

The State Council issued new rules on February 11 emphasizing the importance of job creation amid the economic downturn and the containment of potential massive layoffs.

BRIDGING WUHAN Construction on the first freight rail line on the Wuhan Tianxingzhou Yangtze Bridge is completed on February 9, with another three lines still under construction. The bridge is scheduled to come into use by June (DU HUAJU)

The rules specify that employers nationwide must give 30-day notice to work unions or all their employees before they eliminate more than 20 jobs or more than 10 percent of their total workforce. They also must submit a dismissal plan to local social security authorities before any layoffs occur, the notice said.

The State Council also ordered the strengthening of labor supervision to prevent companies from not paying workers and suddenly closing down factories.

Wind Power Project

China Northern Locomotive and Rolling Stock Industry (Group) Corp. will build the country's largest wind power research center in Xi'an, the capital city of northwest Shaanxi Province.

The research center will cost a total of 6 billion yuan ($877.8 million), according to a company announcement.

The agreement between the company and the Xi'an Municipal Government says the first phase of the project entails an investment of 4 billion yuan ($585.2 million) for the construction of six wind power product manufacturing projects by 2011. The second phase involves an investment of 2 billion yuan ($292.6 million) to build railway transportation and develop wind power systems by 2015.

On the Rails

Construction of a high-speed rail line between Shanghai and Hangzhou, the capital city of Zhejiang Province, will begin by late March and cost 29.7 billion yuan ($4.35 billion), according to a recent report by Xinhua News Agency.

Trains on the 159-km line will be able to run at speeds of up to 350 km per hour, cutting the travel time between the two cities to around 38 minutes from more than one hour currently.

Baoshan Iron and Steel Co. Ltd. will invest 2 billion yuan ($292.6 million) in the project, with the rest of the costs shared equally by the Ministry of Railways, Shanghai and Zhejiang, the report said.

Takeover Talks

Sinopec Corp., China's largest oil refiner, is reportedly looking to purchase a 20-percent stake held by the Spanish construction company Sacyr Vallehermoso S.A. in Repsol YPF S.A., an integrated Spanish oil and gas company with operations in more than 30 countries.

Sinopec is in talks to buy the stake at a price of 26.7 euros per share, representing a nearly 60-percent premium to its market price at present.

Analysts say the purchase would help bolster Sinopec's oil reserves.

Repsol YPF is one of the world's 10 largest private oil companies in terms of assets. Moreover, its crude production is expected to rise in the next few years thanks to its interests in deep-sea oil fields off the coast of Brazil.

Steel Cooperation

Sinosteel Corp., the largest steel service provider on the Chinese mainland, and the E-United Group, one of the largest steelmakers in Taiwan, signed a strategic cooperation pact on February 11, according to Xinhua News Agency.

The agreement specifies that Sinosteel will set up a branch in Taipei for better cooperation with E-United. It will also help in providing raw materials, fuel and equipment to its Taiwanese partner.

The two companies will also step up their coordination in marketing and technology, according to the deal.

"The cooperation amid the economic downturn reflected forward-looking strategies and would promote cross-Straits economic ties," said Chen Yunlin, President of the mainland's Association for Relations Across the Taiwan Straits, during a meeting with senior executives from the two companies.