POWERING CHINA The first phase of the Zhejiang Sanmen Nuclear Power Station kicked off construction on December 15. The power station is expected to be operational in 2013 (TAN JIN)

Saab Deal Sealed

The Beijing Automotive Industry Holding Corp. (BAIC), the fifth largest auto firm in China, announced on December 14 that it had inked an agreement with General Motors Corp. to buy assets in the GM auto brand Saab, marking a significant move on the part of the Chinese company to enter the global market.

Under the deal, BAIC purchased the intellectual property rights for Saab's 9-5 and 0-3 sedans and some equipment to make them for an undisclosed monetary sum.

Saab said it will continue separate talks with other potential bidders over the remainder of its assets.

Bridging the Pearl River Delta

Construction of the 50-km Hong Kong-Zhuhai-Macao Bridge, the world's longest sea bridge, kicked off on December 15.

The bridge will help boost economic and social development on the west side of the Pearl River, said Zhang Xiaoqiang, Deputy Director of the National Development and Reform Commission, at the construction's inauguration ceremony.

With a more convenient and faster transportation network, Hong Kong's financial, tourist, trading, logistics and professional services can better reach the western section of the pan-Pearl River Delta area, said Donald Tsang, Chief Executive of Hong Kong Special Administrative Region.

The bridge, expected to be completed by 2016, will cost more than 72 billion yuan ($10.54 billion).

Lowering Import Tariffs

China is to impose temporary low import tariffs on more than 600 commodities next year, the Ministry of Finance announced on December 15.

The targeted commodities comprised resource commodities, including coal, granite and phosphate ore; key components for optic communications; medical products, including plasma and vaccines; and some advanced machinery, the ministry said, without specifying the duration and tariff rates.

The measure is part of the country's commitments made prior to joining the World Trade Organization in 2001, the ministry said.

The general tariff level has been 9.8 percent for the past three years, much lower than the 15.3-percent level in 2002.

Cooling the Property Fever

The State Council, China's cabinet, said on December 14 the government will take measures to curb housing price surges and maintain the health of the real estate market.

China will increase the supply of smaller houses at medium- and low-price levels, expand affordable housing projects for low-income residents, and also strengthen regulatory supervision to crack down on speculation, said the State Council.

Since March 2009, China's housing prices have returned to a pattern of steady month-on-month growth on the back of record lending and a series of stimulus policies.

In its latest attempt to stabilize the property market, the government recently resumed a 5.55-percent business tax for homeowners who sell their homes less than five years after making the initial property purchase.

Canadian Mining JV

Chinese zinc maker Yunan Chihong Zinc and Germanium Co. Ltd. (Chihong) will invest $94 million in a 50-50 joint venture with Canada's Selwyn Resources to operate the Selwyn zinc-lead mining project in northwest Canada, China Daily reported.

Chihong plans to raise the $94 million for the venture from bank loans and cash reserves.

Harlan Meade, CEO of Selwyn, said in a statement that formation of the joint venture is a major step toward advancing Selwyn's production.

"The project has immense potential to become a major zinc-lead mine. The successful development of the project can bring significant growth to both Chihong and Selwyn," said Ying Dong, Chairman of the Board of Directors for Chihong.