HI-TECH ZONE The hi-tech Sun Valley Steel Structure will soon be installed at the main venue of Shanghai World Expo 2010. The expo's theme, Better City, Better Life, will be highlighted by demonstrating the most advanced concepts, designs and technologies (REN LONG)

VW Expanding

The German auto-making giant Volkswagen AG recently announced plans to invest 4 billion euros ($5.8 billion) over the next two to three years to maintain its "persistent development" in China, China Daily reported.

It will use the fresh investments, coming primarily from its two Chinese joint ventures, to launch new products and local capacity expansion in the world's fastest growing market, said the newspaper.

Volkswagen expects to achieve double-digit growth in China this year and to secure further progress as a market leader, the newspaper said, citing Winfried Vahland, President and CEO of Volkswagen Group China.

He said Volkswagen is "on the track" to achieve its goal of doubling annual sales to 2 million units by 2018, ahead of schedule.

Haier Goes Rural

The Chinese home appliance giant Haier Electronics Group Co. plans to set a wholly-owned subsidiary to engage in marketing and logistics services in third and fourth-tier cities in a move to grab market shares in rural China.

The new subsidiary will focus on distribution, logistics and after-sales service of air conditioners, refrigerators, washing machines and other home appliances, said the company in a statement.

The company made the decision after seeing profits squeezed by fierce competition.

Information Highway

Cisco Systems, Inc. of the United States recently signed a memorandum of understanding with the Chongqing Municipal Government for a strategic partnership to advance the city's IT manufacturing industry, and spur innovation, research and development in green technologies, Shanghai Daily reported.

Cisco and Chongqing will work together to support local innovation and accelerate internationalization of local enterprises, as well as develop "Smart+Connected Communities" solutions to support a long-term strategy of green growth.

Analysts say the tie-up marks a milestone for Cisco to implement its innovation initiatives in China. It will also help the Chinese city advance to a modern and sustainable economy, they said.

Fund Allocation

China will continue to strengthen management over the use of central budget funding in construction programs, the Ministry of Finance said on September 14.

The move aims to make better use of the funding to shore up China's economy and yield better economic returns, the ministry said.

Relevant government departments have been required to accelerate the funding to construction programs, and efforts are also to be made to supervise the capital use.

To inject steam into the sluggish economy, the government has pumped billions of dollars into infrastructure improvement, affordable housing and public service projects.