Subject: CHINA IMP/EXP NEWS (CN940124)

From: [email-masked] (wangc)
Date: Tue, 25 Jan 94 13:41:42 CST

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 #       C H I N A     I M P O R T / E X P O R T     N E W S          #
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 #           A WEEKLY NEWSLETTER FROM THE CHINA-LINK CLUB             #
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                      January 24, 1994 (CN940124)

CONTENTS                                                           LINES
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A) China Market Watch (5 items)......................................304
B) Upcoming Business Events in China ................................156
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A: China Market Watch (5 items).................................304 lines
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1) QUALITY OF CHINESE PRODUCTS IMPROVES .........................65 lines

20-JAN-1994; 20-JAN-1994 by Ma Zhiping

THE quality control at Chinese firms is improving, according to the
latest State inspection.

Officials from the State Technology Supervision Administration, which
oversees product quality, said the percentage of Chinese goods meeting
quality control standards climbed 10 per cent last year over the fourth
quarter of 1992.

Li Chuntian, a quality control official with the administration, said
at a news briefing in Beijing yesterday that 73.8 per cent of goods
checked during the fourth quarter of last year met quality control
standards, compared with only 64.7 per cent in 19 92.

"The inspection result showed quality control has consistently
improved" Li said.

Last October and December, the State Technology Supervision
Administration inspected 2,688 types of products from 2,221 Chinese
State, collective and private enterprises.  Ninety per cent of products
made by big State enterprises passed inspection.

Township and private manufacturers, on the other hand, had quality
control problems. Only 62 per cent of their goods survived the
inspection.

Li said that more than two-thirds of samples inspected came from
medium-sized or small factories. Only 72.9 per cent of their products
met quality control standards.

"The inspection revealed that the quality of major industrial products
is average and that some large enterprises have made remarkable
progress in improving their products," the official said.

Inspectors said the quality of products that had been under continuous
State supervision also improved, adding that makers with official
production licences have paid more attention to quality control, with
80 per cent of their goods meeting standards.

However, Li stressed that serious problems continue to dog enterprises,
especially those that produce goods for daily use. He blamed shoddy
goods on poor management.  Last year, the State checked 9,900 products
produced by 8,105 enterprises, setting a record for the number of goods
inspected in a year since the programme was launched in 1985.

The government checked products important to the national economy,
durable consumer goods, key industrial materials and commodities that
consumers have complained about.

Li Baoguo, deputy director of the  administration, said that China
allocates over 10 million yuan ($1.15 million) on quality inspection.

He said the central government will continue to emphasize quality
control this year.

"Though the seasonal inspection only covers a small proportion of
enterprises in the country, it has played an important role in helping
promote product quality control, guiding domestic production and
consumption," the deputy director stressed. END

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2) PACT AVERTS SINO-US TRADE WAR .....................................73 lines

18-JAN-1994; 18-JAN-1994 by Wang Yong

CHINA and the United States averted a potential trade war by clinching a
last-minute agreement on bilateral textile trade yesterday.

The eleventh-hour deal came after three days of negotiations in Beijing.

The memorandum of understanding (MOU) was signed by Chinese
Vice-Minister of Foreign Trade and Economic Co-operation Shi Guangsheng
and the top US trade negotiator Jennifer Hillman.

It means the end to a 25-to-35-per-cent reduction in import quotas
which the US had threatened to slap on Chinese textiles. The slash in
quotas would have affected exports worth an estimated $1.2 billion and
possibly resulted in retaliatory measures from China.

Earlier this month the US threatened to reduce Chinese textile quotas
as of yesterday for what it called "massive illicit textile
transshipments from China to the US." But the two nations finally came
to an agreement on a three-year renewal of the US-China pact -- which
expired at the end of last year -- "on the basis of mutual
accommodation and understanding," Chinese officials said.

The US agreed to cancel the quota reduction, while China accepted a
quota cut of no more than three times the actual amount of textiles
proven to have been illegally transshipped.

Details of how to calculate the amount were not available.

Hillman said she was pleased with the success of the "productive and
co-operative talks."

She said the new agreement would ensure steady growth of Chinese
textile exports to the US, but she did not say how much the US would
allow the Chinese textile quotas to increase each year.

According to international agreements, the US should increase its
quotas for China by at least 6 per cent each year.

"The new agreement is a positive sign of the co-operative relations
between China and the US," Hillman said, adding the US wants the
relations to continue to grow.

Chinese Foreign Trade and Economic Co-operation Minister Wu Yi said "it
is co-operation that has the best prospects," a view echoed by
Hillman.

Wu said the agreement would create a positive atmosphere for the
upcoming visit to China by US Treasury Secretary Lloyd Bentson and the
meeting between Chinese Vice-Premier and Foreign Minister Qian Qichen
and the US Secretary of State Warren Christopher
 in Paris later this month.

"We are opposed to any pressure in resolving trade disputes -- that
could only lead to trade wars," Wu said.

She reaffirmed the best way to clear trade issues is dialogue and
consultation on equal terms.

Hillman said the new agreement has "provided a strong tool to address
the problem (illicit textile transshipments)."

The two countries expressed readiness yesterday to join hands in
fighting such activities.

In the past, a number of Chinese enterprises, in collaboration with
overseas partners, were found to have shipped Chinese-made textile
products to the US using the labels of other countries and regions. END

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3) MEDICINE CORPORATION PREDICTS RISE IN EXPORTS .....................49 lines

18-JAN-1994; 18-JAN-1994 by Wang Yong

CHINESE medicine exports will start to climb this year, but money
shortages could cramp the increased growth, a leading corporate manager
predicted.

"A recovered international market and an easier relationship between
China and neighbouring countries will come to our help," said Ren
Guangbing, president of China's largest State-run trader in the
sector.

In celebration of the 10th anniversary of the China National Medicines
and Healthcare Products Import and Export Corporation (Meheco) today,
Ren estimated his company's exports will be $130 million in 1994, up 90
per cent over last year.

That figure doesn't include the exports by Meheco as a proxy for other
enterprises in China.

Ren said Meheco's imports would reach about $100 million.

If those goals are met, his company's foreign trade will increase $10
million over last year's $220 million.

Despite a handful of positive factors, he said increased political
skirmishes with nations like the United States -- particularly over
most-favoured nation status -- and resurging protectionism worldwide
will be a stonewall in China's exports.

He also blamed the low quality of export goods for China's lack of
competitiveness in world markets.

"Moreover, we're facing a money shortage at home, which weakens our
purchasing power," he said.

Chaotic price hikes for purchases and price cuts for exports by many
other local companies have hurt the medicine trade, he added.

To better compete in world markets, Ren said his company diversified
its trade into other products like oils, cereals, foodstuffs, arts,
crafts, metals, minerals, machinery and electronic appliances.

The non-medicine products made up 15 per cent of Meheco's exports  in
the first half of last year.  Since its establishment in 1984, Meheco
has posted a total of $5.1 billion worth of foreign trade. END

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4) OFFICIAL CALLS FOR MORE LIGHT INDUSTRY EXPORTS ....................74 lines

15-JAN-1994; 15-JAN-1994 by Qiu Qi

CHINA'S light industry should boost exports and attract more foreign
capital, technology and talented people during 1994.

Exports should increase by 15 per cent, according to projections
unveiled yesterday by Yu Zhen, Chairwoman of the China National Light
Industry Council, at a national working conference in Shenzhen.

Yu told the conference that China's expected re-entry into the General
Agreement on Tariffs and Trade (GATT) will present both opportunities
and challenges for the country's light industry.

The chairwoman called for exports of light industrial products to reach
$34.5 billion in 1994, a 15 per cent hike over last year. The
industry's exports in 1993 are estimated at $30 billion, a 15 per cent
increase over the previous year.

Yu also urged her colleagues to strive for 15 per cent growth in light
industrial output value this year. Her goal is to top 506 billion yuan
($58.16 billion), compared with 435 billion yuan ($50 billion) in
1993.

"Quality is the key to establish the reputation of China's light
industry in both domestic and world markets," Yu said.

She vowed that more than 90 per cent of durable goods would meet
international standards.

Yu also predicted that light industry would develop more than 800 kinds
of new products.

Light industry is one of China's pillar industries. Its output
currently generates a third of the country's total industrial output,
and its export value accounts for another third of the nation's total.

The products from light industry cover 44 sectors, including processed
foods, beverages, detergents, electronic appliances, bicycles, watches,
paper and decorative materials.

China has become the world's leading producer of more than 10 products
including bicycles, china, watches, washing machines, beer and
refrigerators, Yu noted.

She said light industry will continue to transfer the management system
of enterprises to a more flexible one.

She said 31 light industry enterprises are now listed on the Shanghai
and Shenzhen stock exchanges and more enterprises will soon be listed.

Yu forecast that light industry would reduce debt-plagued enterprises
by five per cent this year.

She said low profits are a main problem of China's light industry. Last
year, the number of money-losing enterprises increased by more than 20
per cent over the previous year. Their losses jumped by the same
percentage.

Yu said during 1994 light industry will focus on the co-operation in
key sectors with more of the world's major companies.

Yu said 1994 looks to be a promising year for China's economy. Its
growth will help light industry's rapid development.

Economists predict the gross national product (GNP) will increase by 9
per cent in 1994 with a 15 per cent rise in the light industry products
sector.

During the year, the retail value of consumption products will jump 19
per cent and the export value is expected to climb a solid 10 per
cent.

Products generated by light industry will see a steadily growing market
this year, Yu predicted. END

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5) FAIR A GOOD OPPORTUNITY TO BUY, SELL, EXCHANGE ....................43 lines

14-JAN-1994; 14-JAN-1994 by Sun Hong

THE China Export Commodities Fair opened at the Beijing World Trade
Centre on Wednesday, aiming to lure customers from home and abroad.

About 240 Chinese firms from almost 20 provinces and autonomous regions
are attending the fair, which ends on Tuesday.

Their products, mainly household products and foodstuffs, cover 5,500
square metres of floor space.

"We hope the fair will provide a chance for domestic exporters to
exchange experiences, and for customers to learn more about these
enterprises," said Jiang Lan, sales representative at the China World
Trade Centre and one of the fair's organizers.

Among items on display at the fair, Fujian Longran Greenspring Foods
Company Limited, a joint venture, is exhibiting its instant tea and
other health care drinks.

Kang Qiu, the company's sales manager, said the company's products have
entered Japan and the United States.

Meanwhile, the domestic market for his products also looks rosy, he
said.

The Taiwan-funded Dongguan Wea Bor Hardware and Plastic Company Limited
is attending the fair in Beijing for the first time.

The Guangdong-based company is displaying products ranging from
colourful cooling mugs, hot and cold bags and automatic ashtrays, to
folding coat hangers.

Jing Xing, company sales manager, said the newly-established company
aims to tap the huge domestic market as well as to export.

Branch offices of the firm will soon open in Beijing, Shanghai and
Guangzhou, he said.

The Beijing offices of such big names as Kraft General Foods are also
attending the fair, displaying their products.

The fair is jointly sponsored by China World Trade Centre and the China
National Association on Management of Foreign Economic and Trade
Enterprises. END

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B) Upcoming Business Events in China ...............................156 lines
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1) FOOD PROCESSING AND PACK

ID 940002: Food Production                      Type: Catalog Show
. Commodity: FOOD PROCESSING AND PACK           Dates: 11/01/93-03/01/94
. City: Beijing                                 State/Country: China
. Contact name: Elizabeth Ausberry              Phone: (202) 482-3973

ID 940002: Food Production                      Type: Catalog Show
. Commodity: FOOD PROCESSING AND PACK           Dates: 11/01/93-03/01/94
. City: Shanghai                                State/Country: China
. Contact name: Elizabeth Ausberry              Phone: (202) 482-3973

ID 940002: Food Production                      Type: Catalog Show
. Commodity: FOOD PROCESSING AND PACK           Dates: 11/01/93-03/01/94
. City: Guangzhou                               State/Country: China
. Contact name: Elizabeth Ausberry              Phone: (202) 482-3973

ID 940002: Food Production                      Type: Catalog Show
. Commodity: FOOD PROCESSING AND PACK           Dates: 11/01/93-03/01/94
. City: Shengyang                               State/Country: China
. Contact name: Elizabeth Ausberry   Phone: (202) 482-3973

ID 940014: Food Tech                            Type: Business Facilitation Ce
. Commodity: FOOD PROCESSING AND PACK           Dates: 03/12/94-03/16/94
. City: Guangzhou                               State/Country: China
. Contact name: Eugene Shaw                     Phone: (202) 482-3494
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2) GENERAL INDUSTRIAL EQUIP

ID 940006: Agro Expo China '94                  Type: Certified Trade Fair
. Commodity: GENERAL INDUSTRIAL EQUIP           Dates: 04/12/94-04/16/94
. City: Beijing                                 State/Country: China
. Contact name: Bobbie Ferraro                  Phone: (202) 482-0106

ID 940009: New Products USA                     Type: Catalog Show
. Commodity: GENERAL INDUSTRIAL EQUIP           Dates: 06/01/94-09/01/94
. City: Beijing                                 State/Country: China
. Contact name: Elizabeth Ausberry              Phone: (202) 482-3973

ID 940009: New Products USA                     Type: Catalog Show
. Commodity: GENERAL INDUSTRIAL EQUIP           Dates: 06/01/94-09/01/94
. City: Shanghai                                State/Country: China
. Contact name: Elizabeth Ausberry              Phone: (202) 482-3973

ID 940009: New Products USA                     Type: Catalog Show
. Commodity: GENERAL INDUSTRIAL EQUIP           Dates: 06/01/94-09/01/94
. City: Guangzhou                               State/Country: China
. Contact name: Elizabeth Ausberry              Phone: (202) 482-3973
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3) HOTEL AND RESTAURANT EQU

ID 940012: Hotelex Shanghai '94                 Type: Certified Trade Fair
. Commodity: HOTEL AND RESTAURANT EQU           Dates: 03/01/94-03/01/94
. City: Shanghai                                State/Country: China
. Contact name: Paul Bucher                     Phone: (202) 482-2525
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4) TELECOMMUNICATIONS EQUIP

ID 950001: PT/EXPO COMM CHINA                   Type: Certified Trade Fair
. Commodity: TELECOMMUNICATIONS EQUIP           Dates: 10/25/94-10/30/94
. City: Beijing                                 State/Country: China
. Contact name: Bill Corfitzen                  Phone: (202) 482-0584

ID 940012: CIETE '94                            Type: Certified Trade Fair
. Commodity: TELECOMMUNICATIONS EQUIP           Dates: 06/07/94-06/10/94
. City: Shanghai                                State/Country: China
. Contact name: Bill Corfitzen                  Phone: (202) 482-0584
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5) CONSTRUCTION MACHINERY

ID 940014: Building South China                 Type: Certified Trade Fair
. Commodity: CONSTRUCTION MACHINERY             Dates: 03/12/94-03/16/94
. City: Guangzhou                               State/Country: China
. Contact name: Bobbie Ferraro                  Phone: (202) 482-0106
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6) COMPUTERS AND PERIPHERAL

ID 940014: Compu China '94                      Type: Certified Trade Fair
. Commodity: COMPUTERS AND PERIPHERAL           Dates: 09/01/94-09/05/94
. City: Beijing                                 State/Country: China
. Contact name: Bobbie Ferraro                  Phone: (202) 482-0106
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7) MEDICAL INSTRUMENTS, EQU

ID 950001: Medical Matchmaker                   Type: Matchmaker
. Commodity: MEDICAL INSTRUMENTS, EQU           Dates: 03/01/95-03/01/95
. City: Beijing                                 State/Country: China
. Contact name: Judy Riendeau                   Phone: (202) 482-3119
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8) GENERAL INDUSTRIAL EQUIP

ID 950001: Multi-State Trade Days               Type: Multi-State Trade Days
. Commodity: GENERAL INDUSTRIAL EQUIP           Dates: 11/01/94-11/01/94
. City: Shanghai                                State/Country: China
. Contact name: Ellen Lenny                     Phone: (202) 482-4908

ID 950001: Multi-State Trade Days               Type: Multi-State Trade Days
. Commodity: GENERAL INDUSTRIAL EQUIP           Dates: 11/01/94-11/01/94
. City: Guangzhon                               State/Country: China
. Contact name: Ellen Lenny                     Phone: (202) 482-4908
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9) AUTOMOBILES, AUTOMOTIVE

ID 950003: Fisita Conference                    Type: Trade Fair overseas recr
. Commodity: AUTOMOBILES, AUTOMOTIVE            Dates: 10/18/94-10/23/94
. City: Beijing                                 State/Country: China
. Contact name: Alan Sterling                   Phone: (202) 482-2422

ID 950003: Auto Shanghai '95                    Type: Business Facilitation Ce
. Commodity: AUTOMOBILES, AUTOMOTIVE            Dates: 06/01/95-06/01/95
. City: Shanghai                                State/Country: China
. Contact name: John White                      Phone: (202) 482-0671
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10) INDUSTRIAL ORGANIC AND I

ID 950003: China Int'l Chemical                 Type: Trade Fair Washington re
. Commodity: INDUSTRIAL ORGANIC AND I           Dates: 09/01/95-09/01/95
. City: Beijing                                 State/Country: China
. Contact name: Fred Siesseger                  Phone: (202) 482-0128
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11) COMPUTER SOFTWARE

ID 950003: Computer Software                    Type: Trade Mission
. Commodity: COMPUTER SOFTWARE                  Dates: 04/01/95-04/01/95
. City: Beijing                                 State/Country: China
. Contact name: Heidi Hijikata                  Phone: (202) 482-0569

. Commodity: COMPUTER SOFTWARE                  Dates: 04/01/95-04/01/95
. City: Shanghai                                State/Country: China
. Contact name: Heidi Hijikata                  Phone: (202) 482-0569

ID 950003: Computer Software                    Type: Trade Mission
. Commodity: COMPUTER SOFTWARE                  Dates: 04/01/95-04/01/95
. City: Guangzhou                               State/Country: China
. Contact name: Heidi Hijikata                  Phone: (202) 482-0569
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12) PLASTICS PRODUCTION MACH

ID 950004: China Plas '94                       Type: Certified Trade Fair
. Commodity: PLASTICS PRODUCTION MACH           Dates: 11/11/94-11/15/94
. City: Beijing                                 State/Country: China
. Contact name: Bill Corfitzen                  Phone: (202) 482-0584
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