Aviation

Open horizon for Chinese pilots

Demand for new commercial airline pilots and maintenance technicians to support China's fast-growing fleet of aircraft will help the country lead other Asia-Pacific nations in aviation industry opportunities over the next two decades.

The nation will need 77,400 new pilots and 93,900 technicians between now and 2032, Boeing said in its latest pilot and technician outlook issued on Sept 16.

"There is a very real, urgent demand for competent aviation personnel globally, and the Asia-Pacific region is particularly impacted," said Bob Bellitto, global sales director, Boeing Flight Services. Chinese carriers' fast-expansion will drive this demand. China will take delivery of 5,580 aircraft, and its fleet will triple to 6,450 over the next 20 years, the US company said.

Stock

CNOOC to issue shares in Toronto

CNOOC Ltd, China's largest offshore oil and gas producer, issued shares on the Toronto Stock Exchange on Sept 18, fulfilling a term of its acquisition of Calgary-based Nexen Inc. The company has approval from the Toronto exchange to trade American Depositary Receipts, it said in a statement to the Hong Kong stock exchange on Sept 17. The issue does not involve new shares and will not generate additional funds for the company.

Auto

Volkswagen aims to lift joint-venture stake

Volkswagen AG, Europe's largest automaker, is in talks to increase its stake in a joint venture with FAW Car Co as part of a strategy to expand in China. VW plans to lift its stake to 50 percent from the current 40 percent, Martin Winterkorn, chief executive officer said in an interview. Eric Felber, a spokesman for Wolfsburg, Germany-based VW, confirmed Winterkorn's comments. The company operates a second Chinese joint venture with SAIC Motor Corp. Growth in China has helped Volkswagen offset weaker deliveries of mainstream vehicles in Europe, where industry-wide demand is sliding to a 20-year low.

Commerce

Regulator may take look at glasses trade

The National Development and Reform Commission, China's pricing regulator, may soon investigate industries that are making excessive profits, such as eyeglasses, an antitrust official said on Sept 16. However, the official said that authorities are yet to begin any such inquiry into the auto industry. Lawyers in China said client inquiries related to a five-year old anti-monopoly law have jumped in recent months after a spate of antitrust investigations across various sectors, including pharmaceuticals, milk powder and jewelry. Last month, a Chinese automotive association said it was collecting data for the commission on the price of all foreign cars sold in the country.

Finance

Greentown China offers dollar debt as risk falls

Greentown China Holdings Ltd plans to sell dollar-denominated debt. The builder, based in Zhejiang province, is marketing a sale of 5.5-year securities to yield about 8.5 percent, a person familiar with the matter said, asking not to be identified because the terms are not yet set.

Logistics

DHL-Sinotrans launches mobile service

Air express company DHL-Sinotrans has set up mobile stations in Beijing, Shanghai and Shenzhen to provide companies with convenient pickup facilities. The move will help optimize shipment routes for express items and extend cut-off times for customers, said Wu Dongming, managing director of DHL-Sinotrans International Air Courier Ltd and executive vice-president of DHL Express Asia-Pacific. The mobile stations will also help tackle logistics issues in urban centers. DHL-Sinotrans was established in 1986 as a joint venture between DHL and China National Foreign Trade Transportation (Group) Corp.

Telecoms

China Telecom cuts subsidy on new iPhones

China Telecom Corp, the country's third-largest wireless carrier, has announced subsidies on Apple Inc's iPhone 5C and 5S that analysts estimate are about 15 percent less than those offered for the earlier models. China Telecom requires a down payment of 4,488 yuan ($735; 550 euros) for any plan with a 16-gigabyte iPhone 5C, and 5,288 yuan for the 5S, the carrier said on its website. The handset is free for buyers on a two-year contract with a minimum monthly plan of 329 yuan for the 5C or 389 yuan for the 5S, with the price refunded against monthly use.

Trade

Alibaba links up with Minsheng Bank

Alibaba Group Holding Ltd, the country's largest e-commerce group, has formed a strategic partnership with China Minsheng Bank Corp Ltd for banking services. The services include wealth management, credit cards, direct banking and information technology, according to a statement. Alibaba has long embarked on providing loans to small and medium-sized companies in China, through facilitating small sellers on Taobao.com.

More deals with Arab countries envisaged

Arab countries must step up two-way trade with China, while China should create a sound environment for multilateral economic cooperation in high-return industries like services, finance and environmental improvement, said senior officials from several Arab nations. Abdullah Saleh, under-secretary of the ministry of economy in the United Arab Emirates, said China's economic engine is now shifting from an investment-dominated economy to a consumption-based one. This offers Arab countries huge investment opportunities in China's service sectors such as logistics, tourism, healthcare, transport and telecommunications.

The changing global economic map and the lingering debt crisis in the eurozone have caused big losses for government-backed Gulf financial institutions and their sovereign wealth funds in developed markets such as the US, Britain, France and Germany in recent years.

Policy

Tax changes on cards for e-commerce exports

Government officials are studying policies, likely to be introduced before Oct 1, on rebating or exempting value-added and consumer tax on goods exported through e-commerce, a report on Eastmoney.com, an information portal, said. Exports through e-commerce are often in large quantities but of small value, leaving the business owners with limited options to use a customs declaration and enjoy tax rebates under the current regulations, said Zhang Weihua, an official with the Sate Administration of Taxation.

New-energy vehicle program shifts gears

China adjusted its subsidy program for new-energy vehicles on Sept 17, with the scope and depth of the policy narrowing.

The move is in line with earlier remarks made by a senior official indicating that the country would shift the direction of the financial backing program for the sector.

The long-awaited blueprint, issued by four ministries led by the Ministry of Industry and Information Technology and the Ministry of Science and Technology, will resume the three-year purchase incentive that ended last year, in an effort to help electric vehicles gain further traction.

But the announcement did not, as widely expected, include conventional hybrid vehicles in the subsidy category, a move that industry observers said is critical to the proliferation of environmentally friendly cars.

China Daily - Agencies

There's great demand for new commercial airline personnel due to China's fast-growing aviation industry. Provided to China Daily

(China Daily European Weekly 09/20/2013 page18)