Subject: China IMP/EXP News

From: [email-masked] (China Link Club)
Date: Tue, 23 Nov 1993 02:17:07 -0500

C  H  I  N  A       I  M  P  O  R  T / E  X  P  O  R  T      N  E  W  S

Nov. 22, 1993

A   WEEKLY   NEWSLETTER   FROM   CHINA-LINK   CLUB

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mail your name, postal mailing address, phone, fax, & special contacts.
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I) Trade Opportunities:

(TRADE CONTACTS AVAILABLE BY FAX-ON-DEMAND; Document #3)

B  U  Y  %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

#B9311221

Description:
             Wool, from New Zealand or Australia

Specifications: 3-5, #107
Delivery: 200 ton per month, or 2,000 ton per year
Payment: L/C at sight
Price: please quote CIF Xingang, China

********************************************************************

#B9311222

Description:   
             Fish Meal Wanted

Quantity:   5000 MT
Spec:       Protein >64%, fat <12%, Moisure <10%, salt and mineral <5%
            among them mineral <2%
Please quota us the best CIF price ,Qingtao, Shangdong, PRC.

S E L L  %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

#S9311221
 
Description:
                                
    < 2 LOTS OF SURPLUS PROPERTY consisting of: 
    Lot #1: Used Test  Equipment, Original Acquisition Cost $1,231,731.00.
    Lot #2: New and  Used Electronic Components Acquisition Cost 
    $848,584.00. Total  Acquisition Cost: $2,080,315.00. Type of Sale: 
    Sealed Bid.  Availability of  property and inspection:  Date of Bid 
    Opening: 06 Dec 93 at 9:00 AM CST. (322)

*******************************************************************

#S9311222

Description:
                             
    < VEHICLES & MISCELLANEOUS ITEMS including 2 pickups, Chevrolet
    1979, Dodge 1982; 2 vans, Chevrolet 1986, Dodge 1985; 2 station
    wagons, Ford 1978, Plymouth 1976; 1 sedan, Plymouth 1983; 3
    semi-trailer boxes, Stoughton 1972; 2 bed bodys, Consolidated
    Welding 1960; 2 off-road utility trucks, cushman 1980, Sanfu 1986;
    and misc items including communications, instrument & laboratory
    equipment, medical & dental equipment, office machines & furniture,
    ADP equipment, food preparation & serving equipment, electrical &
    electronic equipment, microscope, spa, roto tiller, lawn sweeper,
    lawn tractor mower, carillon, housing van, convection stack ovens,
    ice making machines, combi-oven, cooker steam, piano and various
    other items. Inspect 8:30 AM to 3:30 PM, November 29, 30 & December
    1, 1993, in various cities & towns in Iowa, Kansas, Missouri &
    Nebraska. Bid Opening: 1:00 PM, December 10, 1993 - 

**********************************************************************

#S9311223

Description:   

     < USED PLANT EQUIPMENT Sale of Used Government Property will be
    conducted at the contractor's plant. Information copies of Sales
    Offering can be obtained from Marvin Kolling, Senior Buyer,
    Purchasing Division, at above address. To inspect items, Inspection of 
    items will be at the following times only: 8:30 A.M. - 11:00 A.M., 1:00 P.M.
     - 3:00 P.M., 1 December 1993. Property to be sold consists of 59 items of
    Used Plant Equipment including Lathes (Turret and Engine), Granite
    Surface Surface Plates, Milling Machines, Welding Machines,
    Manipulators, Positioners, and Equipment, Oscillator, Dust
    Collector, Magnetic Particle Inspection Machines, Portable Magnetic
    Particle Inspection Units, Power Units, Gear Hobbing Machine, Gear
    Shaper, Sawing and Filing Machine, Grinding Machine, Drilling
    Machine, Turning Rolls, Pump (Radial Piston), Weldevator, Blast
    Cleaning and Finishing Machine, Boring, Drilling, Milling Machine,
    Mechanical Press, Gear Generator, Gear Cutting Machine, and Honing
    Machine. Total acquisition cost $1,456,919.00. Invitation for Bid
    No. IFB-93-03. Date of Sale/Bid Opening: 8 December 1993. 1:00 P.M.
    Type of Sale: Informal. Location of Property: Minneapolis,
    Minnesota. (319)

************************************************************

#S9311224

    < RECYCLABLE SALE includes aluminum cartridge cases and other
    recyclable materials; irony aluminum/B-52 aircraft and irony
    aluminum wrecked aircraft; brass cartridge cases and other
    recyclable materials; cast iron and steel; copper bearing metal,
    copper lead covered cable, radiators, and other recyclable
    material; electrical and electronic materials; high temperature
    alloy; metals mixed; nickel and monel miscellaneous materials;
    rubber; stainless steel alloy and stainless steel magnetic
    materials; steel cable, cartridge cases and light and
    heavy/light/heavy (prepared and unprepared) materials; tires
    (pneumatic): titanium alloy; zinc diecast. Type Sale: Sealed Bid.
    IFB No. 31-4622. Inspection beginning: 15 Nov 93. Bid Opening: 01
    Dec 93. Property Locations: AZ, CA, CO, HI, KS, LA, NV, OK, TX.
    (319)

************************************************************

#S9311225

Description: 

    < SHIPS FOR SALE FOR SCRAPPING Sol EXC-8630. Due 122993. 
     Vessel Transfer and Disposal  Officer, The Maritime
    Administration is offering fifteen (15) vessels for sale to
    citizens and noncitizens for scrapping of their hulls within US or
    approved foreign countries. Vessels located James River Reserve
    Fleet, Fort Eustis, VA, Beaumont Reserve Fleet, Beaumont, Texas,
    Suisun Bay Reserve Fleet, Benicia, CA, Guam and Singapore.
    Invitation for Bids available upon request on and after November
    30, 1993. (320)

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I I )  HOW TO SERIALS: 
 
Sepcial " How to "  Reports:  DOING BUSINESS IN CHINA

Serials :   I )  CHINA__ FOREIGN EXCHANGE/PAYMENT PROCEDURES

    China's foreign debt burden is well within acceptable limits.  Foreign
exchange reserves, approaching the equivalent of almost six months of
import cover, continue to mount steadily.  In November 1990, the renminbi
was devalued, bringing the overvalued currency's official exchange rate
much closer to rates in the black market and the foreign exchange
adjustment centers.  Chinese law prohibits forced disinvestment, except
under extraordinary circumstances; it permits repatriation of profits.

    The banking sector in China is dominated by state-owned banks and
Chinese trust and investment corporations.  Under China's central bank (the
Peoples' Bank of China), there are four specialized banks and two
comprehensive banks.  One of the specialized banks -- the Bank of China
(BOC) -- is China's main foreign exchange bank.  In the past, BOC had sole
authority to issue Letters of Credit (LC).  In recent years, however, some
of the other specialized banks (e.g., the Industrial and Commercial Bank of
China (ICBC) have also been given authority to issue LC's.

    Imports into China require import licenses and approval to spend the
foreign exchange.  However, if BOC or another state-owned bank issues an
LC, the U.S. seller can usually be assured that necessary approvals have
been obtained.

    Most BOC LC's are Sight LC's.  Payment is made only after the Chinese
bank which issued the LC has received the export documents.  This means a
minimum 10-20 day wait before the U.S. exporter can collect payment for
goods delivered.  (For example, a U.S. exporter would arrange for all
export documents to be shipped to BOC, and then would have to wait for BOC
to review the documents before being paid.)

    A second common Chinese payment practice affects large equipment sales
and technology exports to China.  For such sales, Chinese buyers typically
make a 10-25% down payment, then pay 70-75% on delivery and the remaining
10-15% on installation.  However, at the time of the initial down payment,
Chinese buyers often require a Standby Letter of Credit from the seller's
bank, guaranteeing the return of the down payment if sales terms are not
met.  A problem arises when a smaller U.S. exporter does not have a credit
line sufficient to cover the required Standby LC.

    The prospect for straight cash sales to China are limited by the
shortage of foreign exchange and by government policies that stress
developing domestic manufacturing capability over importing finished
products.  Although there are no legislatively mandated countertrade
requirements, common forms of business with China now include countertrade
and compensation trade, leasing and technology licensing arrangements.

    There are now 34 branches of foreign financial institutions in China.
In addition, there are 204 representative offices of foreign financial
institutions in cities throughout China.  U.S. banks focus heavily on trade
finance.  They deal primarily with the seven banks and with the major
Chinese international trust and investment companies.

    The Bank of China has 1,400 correspondent banks in 155 countries, and
most major U.S. banks have a correspondent relationship with the BOC.
Other specialized Chinese banks (e.g., ICBC) also have correspondent
relations with a few U.S. banks.

    Chinese buyers also show interest in export credit programs -- such as
those offered by Eximbank and the export-import banks of other countries.
Eximbank has been very active in China and is able, under certain
circumstances, to offer credit at the "OECD consensus rate" (currently
9.3%).  Chinese importers also turn to Japanese commercial banks, which
offer "tax-spared" loans that provide slightly more favorable conditions
than straight commercial loans.

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III)  CHINA MARKET:

DIAMOND DEAL CUT IN SHANGHAI

19-NOV-1993; SHANGHAI (Xinhua) -- De Beers, the world diamond giant,
announced in Shanghai on Wednesday that it would establish its first
joint processing factory in the Pudong New Area. Anthony Oppenheimer,
president of De Beers Said that the factory would process raw diamonds.
He also disclosed that the annual meeting of De Beers' East Asian
diamond organizations would be held in Shanghai from November 18 to 21.
The four-day session is De Beers' first such meeting in China. More
than 50 people are expected to take part -- prominent figures in the
East Asian diamond industry. De Beers will seek more co-operation
opportunities in China in the near future, he said, including providing
China with equipment and technology for the exploration and processing
of diamond ores, and helping to train technical personnel. Oppenheimer
believed that De Beers would gain further strength by co-operating with
China, since it is one of the few countries that is capable of taking
part in all aspects of the diamond industry. He noted that China's
diamond mining output totals 150,000 carats yearly and that the
country's diamond-cutting, polishing and jewelry industries have been
developing rapidly. He also quoted an authoritative world organization
as saying that, starting from the 1990s, the diamond market would shift
to East Asia, especially to China. "The potential of the diamond is in
China," he said, adding that co-operation with China brought broad
prosperity. END

FOREIGN TRADE MINISTER TO VISIT CANADA

19-NOV-1993; by  reporter Wang Yong A top Chinese trade official will
visit Canada from November 21-28. Minister of Foreign Trade and
Economic Co-operation (Moftec) Wu Yi is scheduled to visit the country
after her stay in Seattle for the Asia-Pacific Economic Co-operation
(Apec) forum. This will be the first formal visit to Canada by a
Chinese foreign trade minister in more than a decade. Moftec official
Sui Hui told China Daily in Beijing yesterday that the visit, which
coincides with the establishment of the new Canadian Cabinet, will
"enhance bilateral trade and economic collaboration." "China attaches
great importance to Canada, which is one of the main destinations for
China's move to diversify its overseas markets," she said.  According
to Canadian figures, China become Canada's fifth largest trading
partner last year, while Chinese figures put Canada the 10th largest
partner.  Canada had pledged $772 million in 750 Chinese projects by
the end of this March, with the actual input standing at $132 million.
In the first half of this year, Canadian investment in China increased
by 12.5 times over the same period last year. China's investment in
Canada has been $378 million from 1983 to September of this year. END

NEW BANK SETS UP IN ZHEJIANG

20-NOV-1993; by  reporter Zhu Huhua NINGBO, Zhejiang -- A new joint
venture bank was established in Ningbo, Zhejiang Province, on Thursday
with the approval from the central People's Bank of China. The Zhejiang
Commercial Bank is the first of its kind in the province. And its
establishment marks a new step towards the international market by the
province's financial sector. The new bank is purely commercial and will
be managed in line with the international practice. It has set up
business relations with dozens of overseas financial institutions. And
during four months' trial operation, it has borrowed $30 million in
foreign currency, granted loans worth $35 million and attracted foreign
exchange deposits valued at $ 10 million. The Zhejiang Branch of the
People's Bank of China, the Hong Kong Nanyang Commercial Bank and other
two financial institutions have invested in the bank. It is expected to
support local economic development by raising foreign capital. END

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