Numbers of the Week

16.7%

The output value of China's food industry is expected to grow 16.7 percent in 2009 year on year, according to the China National Food Industry Association.

70 million

Non-state-owned enterprises employed 70 million people, or 80 percent of China's total workforce, in the industrial sector in 2008, said the National Bureau of Statistics.

TO THE POINT: Heavy snowfalls have given rise to gas shortages around the country, reigniting calls to revamp the gas-pricing regime. Foreign pharmaceutical giants are making a push into the Chinese vaccine market as the country gears up to fight the A/H1N1 virus. Speculative international hot money swamps Hong Kong, arousing worries over local economic stability. State-owned enterprises under Central Government administration fared well in October with a wide profit margin. The Baosteel Group Corp. obtained a 15-percent interest in the Australian mining company Aquila. A national program was mapped out by the State Council on November 25 to stimulate the tourism industry.

By HU YUE

Pumping Way Out

The sweeping snowfall and winter freeze have caused an acute gas shortfall across the country.

Chongqing Municipality has started to ration gas supplies to enterprises, while Wuhan, capital city of central Hubei Province, began providing subsidies for taxi drivers that switch to more expensive petroleum. In Nanjing, Zhenzhou and Hangzhou the gas shortage has soared to more than 500,000 cubic meters per day, about 40 percent greater than previous levels, according to a report by the 21st Century Business Herald.

The severe shortage was caused by skyrocketing demand and lack of supply, said China Petroleum and Chemical Corp. (Sinopec), which is responsible for 80 percent of the country's gas supplies, in a statement. Nevertheless, suspicions are circulating that the state-owned energy titan lacks an incentive to expand output.

Wary of inflation risks, the government has for years kept a stringent lid on retail gas prices, leaving a slim margin for the supplier.

But Sinopec has downplayed the doubts, citing that all gas networks are utilizing all cylinders to ensure adequate supplies.

Dong Xiucheng, a professor with the China University of Petroleum, said it is imperative now to reform the retail gas-pricing regime to better reflect costs and demand-supply balances. Efforts are also needed to allow more private players into the sector, said Han Xiaoping, an energy expert with China5e.com, a professional energy website.

Effective market competition can be the best accelerator of gas explorations and price adjustments, Han said.

Vaccine Partners

While the A/H1N1 virus continues to spread, foreign pharmaceutical giants are pushing into the Chinese market in a scramble to slice a piece of the growing vaccine pie.

In the latest move, Swiss titan Novartis Pharma A.G. on November 3 announced plans to pay 850 million yuan ($124 million) for an 85-percent stake in the Zhejiang Tianyuan Bio-pharmaceutical Co. Ltd. Novartis is the world's second largest influenza vaccine maker, while Tianyuan is one of China's eight designated producers for the A/H1N1 vaccine.

Late last year, British drug-maker GSK teamed up with Shenzhen Neptunus Interlong Bio-Tech Co. Ltd. in a joint venture to produce seasonal flu vaccines for more than 25 million people annually.