Subject: CHINA IMP/EXP NEWS (CN940117)

From: [email-masked] (wangc)
Date: Tue, 18 Jan 94 16:23:30 CST

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 #           A WEEKLY NEWSLETTER FROM THE CHINA-LINK CLUB             #
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                      January 17, 1994 (CN940117)

CONTENTS                                                           LINES
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A) Goods Wanted (5 items)...........................................157
B) Goods For Sale (1 items)..........................................30
C) Swap market in china............................................. 10
D) China Market Watch (6 items).....................................418
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A: Goods Wanted (5 items)......................................157 lines
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1) MISC. MATERIALS  (#B9401171)

We have a urgent requirement for animal feed material,please quota us
your best FOB price or CIF Toronto(Canada),we hope to hear from you
before Jan. 26,1994.

Animal feed material         Monthly order         Spec.

1.Nutri Zinc 72%             150-200MT  c,b        Zinc 72% min.
2.Copper Sulphate crystals   500MT      a,b        "Bluestone"CuSO4.5H2O
                                                   Cu 25% min.
3.Zinc Sulphate Monohydrate  150MT      c,b        Fine granule or powder
                                                   Zinc 35.5%, S 17.0%
4.Manganese sulphate         50MT       c          MnSO4.H2O 98% min.
5.Copper Oxide               50MT       c          Cupric oxide 97% min.
6.Cobalt Sulphate            10MT       d          CoSO4.H2O 99% min.
  Monohydrate
7.Cobalt Carbonate           10MT                  Co 45-53%
8.Ethylenediamine            10MT
  Dihydrihydrate (EDDI)
9.Vitamin A 500 IV/gr        5MT
10.Vitamin E 50%             5MT
11.Vitamin B1                5MT
12.Vitamin B2                5MT
13.Vitamin C                 container load
14.Baymag 56 plus                                  Magnesium oxide 94%
                                                   min.
15.Lithium carbonate                               Li2CO3 99.5% min.
16.Lithium Hydroxide                               LiOH 56.7%,CO3 .4%
   Monohydrate                                     Technical grade

Packing:
a. One tonne(2205lb) lots of 40x25 kg plastic bags stretch wrapped and
   strapped to wooden pallet.
b. One tonne polyester/polypropylene intermediate bulk container.
c. Multi-ply paper bags with polyethylene liner.
d. 150 lb poly-lined fiber drum.

Please note we are looking for a reliable source, good quality for a
long term supply. One year contract minimum.LC will be issued form
Canada.

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2) S1629  PUMPED STORAGE POWER STATION (#B9401172)

The people's republic of china has received a loan of us dols 200
million from the asian development bank's ordinary capital resources
towards the cost of the guangzhou pumped storage stage ii project.  the
construction of the second stage of the guangzhou pumped storage power
station will provide environmentally sound, urgently needed peaking
capacity for the guangdong power system and allow a better system
utilization.  the project will make an important contribution to
increasing the operational efficiency of the guangdong power system by
allowing the coal-fired thermal power stations in guangdong to operate
at a higher and more constant output.  the project consists of the
following:  1)  a single water conduit consisting of headrace tunnel,
upstream surge shaft, high-pressure tunnel, reinforced-concrete
manifold, and penstocks; 2)  an underground power cavern containing
four 300 mw reversible turbines and motor generators and auxiliary
facilities; 3)  an underground transformer cavern containing four 360
mva 18/500 kv transformers and gas-insulated switchgear; 4)  two
tailrace tunnels with downstream surge shafts; 5)  an outdoor 500 kv
switchyard with gas-insulated switchgear; 6)  one outgoing 500 kv line
to the substation at zengzheng, a 500 kv line connecting stage i and
stage ii, rearrangement of one 500 kv line originally connected to
stage 1; and a 500 kv line between the north suburb and zengzheng
substations; 7)  expansion of the substations at zengzheng, north
suburb, and luo dong; and 8)  consulting services including training.

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(3) FERTILIZER INDUSTRY RESTRUCTURING (SECTOR) PROJECT (#B9401173)

The people's republic of china has received a loan of us dols 250
million from the asian development bank for a fertilizer industry
restructuring (sector) project designed to develop both a
market-oriented and efficient nitrogenous fertilizer industry.  the
project will include the following types of subprojects: (i)
modification, rehabilitation, replacement and optimization of existing
sites; and (ii) conversion of small-scale ammonium bicarbonate plants
to produce urea or other high nutrient products.  any capacity
expansions will be offset by closure of equivalent capacity at
inefficient plants.

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4) FROZEN COD FISH WITHOUT HEAD AND INTERNAL ORGANS (#B9401174)

PRODUCT DATA

a. Detailed product description: frozen codfish
b. Product specifications/technical data: frozen codfish without heads
   and internal organs, length of 30 cm.  packing: outer packing
   to be paperboard box, inside packing to be plastic bag.
   three (3) bags per box.  10 kg in each plastic bag, 30 kg
   per box.
c. Quantity: 9,000 tons per year, in three shipments
d. U.S. dollar value: market value
e. Purchase needed by: immediate
f. Other information: payment terms is letter of credit, port
   of destination is dalian, china. cif dalian, china.

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5) COPPER PLATES, SHEETS, AND STRIPS IN COILS (#B9401175)

PRODUCT DATA

a. Detailed product description: roll of copper
b. Product specification/technical data: roll of copper
   greater than 25 per cent density
c. Quantity: 60,000 metric ton
d. Dollar value: 92 million
e. Purchase needed by: second half of 1994
f. Other information: cfn/cif dallan port, prc, or north
   america port pricing.  to demonstrate their serious
   intent, a purchasing delegation headed by 
   the end user corporation is scheduled to visit north
   america in march to meet with confirmed suppliers.

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B: Goods For Sale ............................................30 lines
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1) COMPLETE AUTOMATIC CAR WASHING SYSTEM (#S9401171)

A: Automatic aluminum lammmscloth wash system (Drive thru model)
   90 inch vehicle clearance
   Two soft fiber wraps and 1 soft fiber top brush cleaning system.
   1) Machine and detergent air hose activation system
   2) Detergent application arch
   3) Detergent injection system
   4) Detergent container
   5) Flex-A-Round front, side and rear cleaning system 
      with electric motor applicator.
   6) Soft fiber top brush complete with electric motor assembly.
   7) Final rinse applicator
   8) Motor control station metal enclosure
   9) 22 1/2 foot safty guide rail.
   10)Polished aluminum framework
   11)Top brush shield.

B: One pair rocker panel brushes with 6 seperate cleaning pelts.
   1 HP electric drive, unit is mounted to structural support 
   memeber of machine.

C: Quadro jet spinner archs for high pressure system
   20 HP pumping station and accessories.

D: Free freight and insurance to Beijing , CHINA.
E: Price and further information are availabe upon request.
F: Commission will be paid to the personel in locating the buyers in CHINA.
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C) SWAP MARKET .................................................10 lines

14-JAN-1994

THE US dollar dropped to 8.769 yuan against the renminbi at the Hainan
Foreign Exchange Swap Market yesterday, down from 8.78 yuan on
Wednesday.

The market's average price was 8.7671 yuan, with $1.66 million traded.
About $4.1 million was traded on Wednesday.

In Shanghai, 100 Japanese yen traded for 7.7 yuan.      (CD - Zhonghui)

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D: CHINA MARKET WATCH (6 items).............................. 418 lines
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1) TELECOM TO GET BIG BOOST......................................67 lines

13-JAN-1994 by Xie Liangjun

CHINA will invest 53.6 billion yuan ($6.16 billion) this year in fixed
assets in the postal and telecommunications sector.

Much of the investment, which is 34 per cent more than last year, will
come from foreign loans.

Posts and Telecommunications Minister Wu Jichuan said yesterday during
a national teleconference that China will add another 12 million
telephone lines this year, bringing the country's total exchange
capacity to 52 million lines by the end of the year.

There are also plans to install 9 million new telephones, compared with
5.9 million new ones added last year.

The country's post and telecommunications industry grew at a rate of
58.9 per cent last year. For the past nine years, the sector's annual
growth rate has exceeded national economic growth.

China invested a total of 40 billion yuan ($4.6 billion) in fixed
assets in posts and telecommunications last year, 2.5 times the total
investment made in the previous year.

According to a Ministry of Posts and Telecommunications blueprint,
China will increase its total telephone exchange capacity to more than
100 million lines by the end of this century, most of them
programme-controlled and digital.

At that point China will have one of the world's largest telephone
systems.  China's rapid expansion of post and telecommunications
network is expected to continue to benefit overseas partners.

China's telecommunications equipment market is also likely to remain
open to overseas manufacturers.

The country will be more active in using foreign investment and loans
and introducing advanced equipment and technology from abroad,
according to the ministry's plans.

In order to meet its huge domestic demand, China has set up joint
venture factories with foreign telecommunications giants to manufacture
equipment which Chinese companies could not make.

China hopes to construct 22 major fibre optic cables lines during the
1991-95 period. Last year, it put eight into operation, bringing the
total number of such major lines in service to 11.

The construction of 14 satellite ground stations has also been
completed.  At present, 12 provinces and municipalities have set up
their own phone networks, each with an exchange capacity of more than 1
million lines.

Local phone networks in Tianjin, Jiangsu, Fujian, Zhejiang, Anhui and
Guangdong are digital and programme-controlled.

The minister also noted that major progress was achieved last year in
the postal service.

China last year imported its first batch of automatic postal sorting
machines and began installing them in six cities.

Newspaper and magazine subscribing and distributing were computerized
last year in 29 Chinese provincial capital cities. END

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2) CHINA LIFTS SOME IMPORT BARRIERS,
   BUT STRENGTHENS LIMITS ON OTHER IMPORTS .....................174 lines

    China  abolished  quotas and import licenses on 283 products,
including coffee,  civil  aircraft,  steel  products, polycarbonates,
cobalt, fruit, construction  materials,  and  some electronic products,
the People's Daily reported Jan. 1.  Beijing also reduced tariffs for
234 products like fertilizer, lead and zinc whose prices would have
risen because of the float of its currency, it said .

    In  an  October  1992 market access agreement between the United
States and  China, Beijing agreed to remove three-quarters of its
non-tariff trade barriers  within  two years. Jan. 1 was the first
major deadline under this agreement.

    The United States, which claims it is heading for a $20 billion
deficit with  China  this  year,  has  criticized  Beijing for dragging
its feet on Deputy  U.S. Trade Representative Charlene Barshefsky had
given China until the  end  of  1993  to  prove it readiness to comply
with the market access memorandum  of  understanding. She said China
needed to publicize its trade regulations,   and   significantly
liberalize  its  quota  and  licensing restrictions by Dec. 31.

 Electronics, Machinery Controls Imposed

    In  contrast  to  the market opening moves, Beijing published a
list of electronics and machinery products it will "strengthen
import control over" by  using  quotas and compulsory bidding, the
official China Daily reported Dec. 31.
    Shi  Yonggong,  director of the machinery and electronics office at
the State Economics and Trade Commission, told BNA the 18 products
on the quota list--including  cars,  motorcycles,  video  recorders,
computers, and air conditioners--were already subject to non-published
quotas.

    Another list of 171 products--including instruments; machine tools;
and machinery    used    for    textiles    production,
communications,   and shipbuilding--will  be  protected  by  insisting
purchases  be  made using international  bidding  procedures to ensure
domestic and foreign firms can

    "The  whole  package is generally a saluatory move because it
clarifies the  rules  of  play  in China, but it's not going to
mean that you'll make exports  more easily; it just means that you know
what the impediments are, whereas previously they were unpublished,"
said Anne Stevenson, director of China operations at the United
States-China Business Council.

    "The  bidding  process  is  supposed  to even the playing field for
the domestic firms, but I'm not exactly sure how even that will be,"
she added.

 Auto Tariff Cuts
    New  tariff cuts include a reduction for small cars from 150
percent to 110 percent and for large cars, from 220 percent to 180
percent.

    Despite  this,  imports  of  cars  are  expected to fall because of
the effect  of  the yuan's float, a clamp-down on smuggling, and a
possible end to  duty-free  car  import  privileges  for foreign-funded
firms, the China Daily quoted unidentified trade officials saying Jan.
2.

    The  cuts in car tariffs will be on top of reductions effective
Dec. 31 for  products ranging from computers to petrol, announced
in November. That

    China's  bid  to  open  its  market  and  join the General
Agreement on Tariffs  and  Trade  comes as the trade ministry
expects the nation's trade deficit to top $8 billion this year.

    Imports  grew  27.8 percent in the first 11 months of 1993, against
the period  a year earlier, to hit $85.95 billion, while exports
inched up just 6.2 percent to $78.25 billion, the ministry announced in
December.

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3)HUGE HI-TECH IMPORT PACKAGE COVERS 210 PROJECTS ...............51 lines

10-JAN-1994 (China Business Weekly)

CHINA has made remarkable progress in importing advanced technology and
equipment for 210 key State projects involving transportation,
telecommunications, raw materials and other areas, according to Zhang
Xiaoqiang, Deputy Director of the Foreign Funds D epartment under the
State Planning Commission (SPC).

Zhang said that so far contracts have been worked out or signed to
import technology, equipment and key materials for 47 projects. And 20
more projects are in the process of bidding or business negotiations.

In June 1993 China announced a huge import package for the last seven
years of the 1990s that is expected to cost $30 billion.

The package covers 23 sectors and trades including agriculture, energy,
transport, telecommunications, machinery, electronics, chemicals,
metallurgy, light industry and textiles. A majority of the 210 major
technology projects are in infrastructure and b asic industries, areas
to which the Chinese Government has decided to give priority.  On the
import bill are equipment, key facilities, accessory meters and
instruments, said Zhang. Financial sources for the purchases include
State foreign exchange reserves, fund-raising by departments and local
governments concerned, international commer cial loans and loans
provided by foreign governments or international lending institutions.

The SPC official said all these projects have been approved by the
government and have been listed in the State plan.

The 47 contracts that have been concluded include a $120-million order
for manufacturing equipment from the Japanese Sanyo Company for the N
66 Salt Project in Henan Province, Central China, and a $17-million
order to import key equipment from the United States for a forestry
project in North China's Hebei Province.

Also included is an agreement between China and the Siemens Company of
Germany on importing locomotives and equipment worth $400 million for
the Guangzhou Subway project.

The publicity on these major technology importing projects has aroused
wide interest among foreign businessmen, who said that the move helped
them know more about China's foreign trade policy and offered
authoritative and practical information on trading with China,
especially on major technology purchases.

The move will also facilitate China's technical renovation and
infrastructural building, said Zhang.

According to a 10-year development blueprint for the period from 1991
to 2000, China's gross domestic product (GDP) will maintain an 8 to 9
per cent annual growth rate in the years.

To this end, Chinese leaders said the country should more effectively
cash in on the international market, capital, technology and resources
to keep the growth rate of foreign trade higher than that of the
nation's GDP.

The government has decided to rationally readjust the import structure
so that more will be spent on introducing advanced technology and key
equipment for basic industries and infrastructure.             (Xinhua)
END

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4) BIG STEEL SUPPLY IN CHINA MAY LEAD TO CUT IN IMPORTS ..........16 lines

JOURNAL OF COMMERCE (JC) - January 11, 1994
By: P.T. BANGSBERG Journal of Commerce Staff

HONG KONG - While China's demand for steel will continue to grow this
year, its imports may fall temporarily thanks to high stocks.

    China  aims  to  produce a record 93 million metric tons (102.3
million tons)  of  steel  in  1994,  up 5.7 percent on last year's
figure. The 1993 tally of 88.3 million tons was an increase of 9
percent on 1992.

      "Excessive  imports"  last year had swollen inventories to 25
million tons at the end of December, said Zhen Yongdian, vice
president of Metals & Minerals  Import  &  Export  Corp.  It accounts
for about half of all steel imports.

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5) CHINA ACCUSES  FOREIGN INVESTORS OF CHEATING .................. 36 lines
Christian Science Monitor (CH) - Monday, December 13, 1993 By: Reuters Edition:

TEXT:  BEIJING  -  *  China accused some foreign investors yesterday of
cheating their local partners by inflating and sometimes faking
prices.

   An  angry  article  in  the  People's Daily said the loss of state
assets in joint  ventures  had become a serious problem and must be
stopped by preventing foreign malpractices and supervising local
partners more closely.

   One  Hong  Kong  firm in a venture in Jiangsu cheated its Chinese
partner by providing $450,000-worth of equipment for $1.25 million,
the newspaper said.

   An  investigation into 2,623 ventures in the first eight months of
this year found  the foreign side claimed to have invested assets
worth $700 million when the real figure was only $400 million.
   The article comes amid rising official concern over the loss of
state assets both to foreigners and Chinese, as the country moves
toward a market economy.

   Official  figures  for  the first 10 months of this year show China
received $90.74  billion in contracted foreign investment, with
$17.27 billion in actual investment  -  up 139 percent and 142 percent
respectively from a year earlier.
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 6) China Tightens Rules On Cotton, Tea Exports .............. 80 lines
JOURNAL OF COMMERCE (JC) - December 10, 1993 By: P.T. BANGSBERG 

TEXT:  HONG KONG - In a further indication of concern about falling
cotton production, China is tightening export supervision.

     Tea exports also will be reorganized.

     Documents  obtained  Thursday  from  the  Ministry  of  Foreign
Trade and Economic  Cooperation show quotas will be applied, but
no quantities are known.  The  rationale  is  for  such  exports  to
be  "managed  in  an unified way by authorized exporters," the
documents said.

     Cotton export quotas, whatever they turn out to be, will be shared
between Cotton Import & Export Co. a unit of state-owned China
National Textiles Import & Export Corp., and existing cotton export
companies.

    Sales  to  the main markets Japan, Thailand, Indonesia, South
Korea, Hong Kong and Taiwan will be handled at a new cotton-trading
center organized by the China Association of Textile Importers and
Exporters.

    Exports  to  other markets will be contracted by exporters at
prices set by the association.

    Textiles  and  garments are China's leading export earner, with the
bulk of sales to the United States. Production of cotton is falling
as a result of poor weather and shrinking acreage as farmers switch to
more profitable cash crops.

    Cotton acreage this year was down 30 percent from last at around 12
million acres.  The  most  recent  forecast  of this year's crop is
4.15 million metric tons, down from 4.5 million last year.

    Through  Nov.  10,  the  state had purchased just under 1.5 million
tons of ginned  cotton, official figures show, only two-thirds the
quantity at the same stage last year.

       A  recent  study  by  the  China  Price  Information  Center
forecasts a shortage  of  supply  between this winter and next
spring and consequent higher prices.

    Last year's cotton production from 17 million acres was off 20
percent from a  year  earlier. Output in 1991 was a record 5.6
million tons, up more than 25 percent on the year before.

    Serious  drought and insect problems last year saw output halved in
the key provinces  of  Hebei, Shandong and Henan. Other areas
reported drops of between 10 percent and 40 percent.

    Officials  warned  last  August  of  the most dangerous infestation
of boll weevil  in  China's  history.  A  weevil  plague last year
cost 10 billion yuan (US$1.65 billion) in losses and is badly savaging
this year's crop.

    In  a bid to stimulate output, vice premier Zhu Rongji, the
country's chief economic  strategist,  early  this  year assured
farmers the state would buy as much  cotton  as they can grow. The
purchase price "will not be lower than last year," he pledged.

    But  textile  firms  must  also  contend  with  the poor quality of
much of China's cotton.

       Bidding  wars  for  the  best  crop often involving kickbacks to
farmers divert  much  of  it  to  mills  without  modern
technology.  This  results in low-quality  garments  and  saps
profitability  at  new  mills where machinery remains idle.

       Separately,  the  ministry  documents  show  tea  exports  will
also be reorganized.  Quotas,  also  as  yet unquantified, will
be shared between China National  Native  Produce  &  Animal
By-products  Import  &  Export  Corp. and provincial and municipal tea
and native produce firms.

    The  national  corporation  will  be required to "unify" tea
exports to the primary  markets, including Morocco, Libya, Tunisia,
Mauritania, Algeria, Japan and  Hong  Kong.  Sales to other markets
will be done by companies at the lower levels.

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