Volkswagen will recall its vehicles in China due to a defective gearbox system. Provided to China Daily

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Volkswagen to recall vehicles after TV report

Volkswagen AG, Europe's largest automaker, plans to recall vehicles in China after drawing scrutiny from the nation's quality inspector and State broadcaster over defective gearbox systems. The company will conduct a voluntary recall related to its direct-shift gearbox system, Volkswagen said in a statement without providing details. The statement came after China's General Administration of Quality Supervision, Inspection and Quarantine said it told the German automaker to conduct a recall and after Volkswagen was featured in China Central Television's annual show about suspect consumer practices.

Volvo Cars approved to produce in China

Volvo Cars, the Swedish carmaker owned by Zhejiang Geely Holding Group Co, has won the approval of China's top economic planning agency to begin making vehicles in the country, three people familiar with the matter said. The National Development and Reform Commission recently authorized Volvo's production plan, said the sources, who asked not to be named because the process is confidential. The State Council has to give final approval, though the chances of rejection are negligible, said one of the sources.

One in four Bentleys sold in China last year

About one in four Bentley vehicles were sold in the Chinese market in 2012, British luxury carmaker Bentley Motors announced on March 19.

According to the company's financial results, the company achieved a year-on-year global growth of 22 percent with 8,510 cars delivered to customers in 2012.

The United States remained Bentley's largest market, with sales of 2,457 units in 2012. China was second with 2,253 deliveries, a rise of 23 percent compared with 2011. Britain ranked third with 1,187 cars delivered.

Audi to open one new dealership a week

German carmaker Audi AG plans to open an average of one new dealership a week in China this year, an Audi official said on March 12. "At present, we are rapidly expanding our dealer network in China," said Rupert Stadler, chairman of the board of management at Audi AG. Stadler added that about half of the Chinese cities with more than a million inhabitants still have to be included in the dealer network.

Healthcare

BMS to launch new diabetes medicines

International biopharmaceutical company Bristol-Myers Squibb is to launch at least four new medicines for diabetes treatment in China by 2015, a company executive said on March 19. "Diabetes is one of BMS China's most significant businesses. We will launch four or more new drugs in China in the next two to three years," said Jean-Christophe Pointeau, president of BMS China. The company is cashing in on the market's huge demand as China has the world's largest population of diabetes patients-92.4 million and forecast to be 130 million by 2030.

Economy

Credit trends of corporations to stabilize

Credit trends of Chinese corporations are likely to stabilize this year because of the improvement in the domestic economy and the continuation of a benign liquidity environment, Moody's Investors Service said in a report on March 19. "We expect to take fewer negative rating actions on Chinese companies in 2013 than in 2012, as the revenues and earnings of most firms will recover. This view is based on expectations for gradual improvements in the fundamentals of some industry sectors, against the backdrop of our central macroeconomic scenario," said Kai Hu, a Moody's vice-president and senior analyst.

China may limit gold to 2% of foreign reserves

China is likely to limit its gold holdings to 2 percent of its total foreign exchange reserves, said Yi Gang, a deputy Chinese central bank governor. The People's Bank of China last made known changes to its gold reserves in 2009, announcing that it held 1,054 metric tons. The bank hasn't made any revisions since then. That's about 1.8 percent of its total reserves, according to data from the World Gold Council. "If the Chinese government were to buy too much gold, gold prices would surge, a scenario that will hurt Chinese consumers," Yi said on March 13 in Beijing.

Trade

Anti-dumping duties on coal coke expire

The European Commission said that the anti-dumping measures it imposed on imports of Chinese coal coke would expire on March 19 because "no duly substantiated request for a review was lodged". The EU in December 2006 launched its anti-dumping probe into Chinese coal coke pieces with a diameter larger than 80 millimeters and made the final ruling in March 2008. The product was already subject to anti-dumping measures from June 2000 until 2004. The measures were suspended in March 2004 due to a temporary change in market conditions, but were then resumed.

Finance

Bank invests in Guangdong Aiyingdao

Guangdong Aiyingdao Children Department Store Co Ltd, one of the country's leading maternity and infant-product retailers, has signed a strategic partnership with Standard Chartered Private Equity Ltd, as it seeks to expand its network of stores across China. The bank has taken an investment in Aiyingdao and will provide the retailer with financing. In a statement, the two sides said they will work together to expand in China's fast-growing maternity, infant and children's products market. Founded in 1998, Aiyingdao runs more than 230 stores in southern, eastern and central China, and is aiming to expand that to more than 600 in the next three years.

China helps to boost Latin American loans

China will help the Inter-American Development Bank finance $12 billion (9.3 billion euros) in loans for Latin America and the Caribbean this year as the region struggles to recover from the global financial crisis. The region is forecast to grow 3.9 percent through 2017, down from 4.8 percent during the five years before the 2008 global recession, the Washington-based lender said in a March 17 report. The People's Bank of China will help finance $2 billion in loans, with most of the credit going to Latin American companies, according to the IDB.

Investment

CNPC to buy Eni's Mozambique assets

China National Petroleum Corp, the country's largest oil producer, will buy a 28.6 percent stake in Eni SpA's East African subsidiary for $4.2 billion (3.26 billion euros). The deal will give CNPC indirect ownership of 20 percent of Eni's Mozambique assets, state-controlled CNPC said on March 14. Eni, Italy's largest oil company, has discovered about 75 trillion cubic feet of gas in Mozambique, CNPC said. The purchase will be the biggest deal involving an Asian company announced so far this year, according to Bloomberg.

Siemens launches renminbi VC business

Siemens Financial Services said on March 18 that its Siemens Venture Capital Co Ltd unit has launched a fund devoted to renminbi onshore deals. The new renminbi fund is part of Siemens Financial Services' global VC platform. It focuses mainly on four sectors: energy, healthcare, industry, and infrastructure and urban development. Siemens Financial Services is a unit of Germany-based Siemens AG. Combined with the new renminbi fund, Siemens Financial Services' VC business will be able to invest the local currency into purely domestic companies to further enhance Siemens' capabilities in VC investment through renminbi onshore deals, in addition to existing US dollar investments, the company said.

China Daily-Agencies

(China Daily 03/22/2013 page18)