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News letter Issue No.23
2009/10/23

Issue No. 23

     October 23, 2009

BETWEEN CHINA AND THE EU

On October 20, H.E. Ambassador Song Zhe, Head of the Mission of the People’s Republic of China to the European Union, spoke at the Conference of the European Technology Platform for Zero Emission Fossil Fuel Power Plans calling for all the nations to take a positive and responsible attitude and join hands to tackle climate change. To read the speech, please see http://www.chinamission.be/eng/jd/t621543.htm

On October 21, H.E. Ambassador Song Zhe made welcome remarks at the reception for the China-EU Youth Friendship. To read the remarks, please see http://www.chinamission.be/eng/jd/t622126.htm

BETWEEN CHINA AND THE WORLD

Chinese President Hu Jintao met with visiting Russian Prime Minister Vladimir Putin on October 14, hailing fresh development of bilateral relationship and vowing closer collaboration.

Chinese President Hu Jintao on Wednesday met with visiting Russian Prime Minister Vladimir Putin, hailing fresh development of bilateral relationship and vowing closer collaboration.

Chinese President Hu Jintao (R) meets with Russian Prime Minister Vladimir Putin in Beijing, Oct. 14, 2009.

China and Russia celebrated their 60th anniversary of the establishment of diplomatic ties. Russia was the first country to establish diplomatic relations with China, days after the People's Republic of China was founded on Oct. 1, 1949. As an important milestone in deepening relations, both countries established strategic partnership of coordination in 1996.  Chinese Premier Wen Jiabao and Putin held closed-door talks and witnessed the signing of 12 agreements, including the agreements on natural gas and oil.

The eighth prime ministers' meeting of the Shanghai Cooperation Organization (SCO) member states released a joint communique to further the cooperation among the member states. The meeting, held in the Great Hall of the People, was chaired by Chinese Premier Wen Jiabao and attended by his counterparts from Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, as well as representatives from the SCO observer nations and Afghanistan. The joint communique reiterated that the SCO member states would carry out active cooperations in economic and trade, resources, agriculture, transportation, culture, environment protection, etc. The premiers at the meeting agreed that the financial cooperation should be deepened. The financial sectors of the member states should enhance the information exchange to tackle the global financial crisis. The member states will also carry on research on the meetings of financial ministers and heads of central banks. The next prime ministers' meeting of the SCO member states is to be held in Kyrgyzstan in 2010.

Chinese Premier Wen Jiabao (2nd L) speaks to the media after the eighth prime ministers' meeting of the Shanghai Cooperation Organization member states at the Great Hall of the People in Beijing, Oct. 14, 2009.

WHAT’S NEW IN CHINA

China hopes to improve international cooperation for the clean, safe and sustainable use of energy, State Councilor Ma Kai said on October 20.  Ma made the remarks when meeting with representatives attending an international energy forum in Beijing. While promoting the clean and sustainable use of fossile energy, China has taken comprehensive measures to boost the use of clean and new energy, including hydropower, wind power, nuclear electricity, solar power, biomass energy and ocean energy.

China's new yuan-denominated loans in September rose to 516.7 billion yuan (75.68 billion U.S. dollars) from August's 410.4 billion yuan. New yuan-denominated loans in the first nine months stood at 8.67 trillion yuan, 5.19 trillion yuan more than the same period last year. China's foreign exchange reserve hit a new high of 2.2726 trillion U.S. dollars at the end of September. China's monthly new loans had slowed from June's high of 1.53 trillion yuan to 355.9 billion yuan in July as a result of bank contracting credit and the central bank's open market operations. The figure rose to 410.4 billion yuan in August and then to September's 516.7 billion yuan. The broad measure of money supply, M2, which covers cash in circulation and all deposits, was up 29.31 percent from a year earlier to 58.54 trillion yuan at the end of September. The narrow measure of money supply, M1 (cash in circulation plus current corporate deposits), was up 29.51 percent to 20.17 trillion yuan.

The National Development and Reform Commission (NDRC) will mainly redress production overcapacity in six sectors which include steel, cement, plate glass, coal-chemical industry, polycrystalline silicon and windpower equipment. The NDRC also warns of obvious production overcapacity in sectors like electrolytic aluminum, ship manufacturing and soybean oil extraction. China has achieved preliminary progresses in fighting the global economic downturn, but the foundation for economic recovery is not stable yet and overcapacity might lead to bankruptcy, unemployment and bad bank loans if it was not checked in time.

The Chinese securities regulator announced that trading on the Nasdaq-style Growth Enterprises Market (GEM) will be launched on October 23. Ten Chinese companies kicked off initial public offering (IPO) procedures for listing on GEM. The companies are 10 of 13 approved by the China Securities Regulatory Commission (CSRC), in the fields of new energy, logistics, outdoor activity equipment, bio- engineering technology, software, medical equipment and medicines. They are expected to raise 3.4 billion yuan (500 million U.S. dollars) from the listing. 

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