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China's State-owned Sinochem Corporation, one of the world's top 500 companies, had profits of more than eight billion yuan (US.1 billion) in 2007, up 95 percent over the previous year, the firm said on its web site.The Beijing-headquartered company didn't elaborate on these figures. Preliminary estimates showed that revenue topped 200 billion yuan, up 19 percent. Total assets exceeded 100 billion yuan. Sinochem, which began as a trading company in 1998, is involved in a range of businesses including agriculture, energy, chemicals, finance and real estate.Sinochem International, one of its subsidiaries, said last month that it would buy part of the business of Monsanto Company, a US-based agricultural company.Under the terms of the agreement, Sinochem will purchase the assets related to Monsanto's pesticide business and certain other assets in China's Taiwan Province and countries including the Philippines, Thailand, Vietnam, India, Pakistan and Bangladesh.

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Mixed feelings over buying Japanese productsHonda, Canon, Fuji, Sony, Mitsubishi, Asahi, Sumitomo, Shiseido, Square Enix and Daiichi Pharmaceutical apart from being Japanese, these brands have something else in common. They are all immensely popular in China. Chinese consumers, with a collective memory of the eight-year Japanese invasion and Japanese prime ministers' constant visits to the Yasukuni Shrine that honors war criminals, have mixed feelings toward these leading brands. To a recent poll by China Daily on its website (www.chinadaily.com.cn), which posed the question "Have you bought any products made in Japan over the past two years, and why?", 45.63 percent of the respondents said "yes", while 44.04 percent said they had not, and the rest of the 1,065 respondents made no comment. Most people, the survey reveals, buy Japanese products because of their quality, after-sales service, design and affordability. "I don't care if the product comes from Japan or is made in China, I only care about its quality," said a respondent. Some consumers believe that the history of war is a political issue, with no relevance to business. A Japanese goods buyer said: "That's the real world. You buy what's value for money. There's no way one can deny that Japanese goods are quality products," but added that if any Japanese company got involved in politics in a "negative way", its goods would fall from her grace. But a great number of people said they were in two minds when buying Japanese goods. "Frankly speaking, products made in Japan are superior to ours, so we tend to buy them. It's rational consumer behavior," a respondent said. "However, in terms of politics, the Japanese prime ministers' visits to Yasukuni infuriates all Chinese people." Most respondents who do not buy Japanese commodities share the latter view. Many of those who participated in the survey believe the two nations share many common interests such as bilateral trade and investment and the Japanese government should strengthen bilateral ties. Bilateral trade volume reached 7.36 billion in 2006, up 12.5 percent over the previous year. Japan continues to be China's third-largest trade partner. By the end of November 2006, Japanese firms had invested .45 billion in China. Japan is now the second-largest source of foreign investment in China, after the United States. From January to October 2006, Chinese enterprises invested .18 million in Japan, with total investment from China reaching 9 million. This year is the 35th anniversary of the normalization of China-Japan relations and the 70th anniversary of the "July 7 Incident" that marked the beginning of the War of Resistance against Japanese aggression.

The country's trade surplus last month continued its downward trend, with efforts to curb exports paying off and imports rising, authorities said on Friday.Figures from customs authorities showed the trade surplus last month was .49 billion, below December's .7 billion and the record high of .1 billion set in October last year."For the first time since May, the trade surplus is under billion," customs said on its website.Exports rose 26.7 percent from a year earlier to 9.66 billion, while imports rose 27.6 percent to .17 billion, the government agency said. Import growth outpaced exports for the fourth month in a row.Experts said the surplus dropped due to policies put in place last year to curb exports. The authorities had introduced a raft of policies since early last year, including VAT cuts, to discourage exports of energy-intensive, polluting products."China's policies to encourage imports and cut the trade surplus are also helping a lot," Zhang Xinfa, an economist with Beijing-based China Galaxy Securities, said.As a result of the tightening policy, the processing trade last month was .85 billion, up 15.8 percent year on year. But the growth rate slowed by 9.9 points compared with the same period last year.The appreciation of the yuan also played a role in curbing exports."Many exporters are facing difficulties due to rising costs and the yuan's appreciation, and export momentum will ease in the coming months," Li Yushi, a researcher on trade with the Ministry of Commerce, said.According to Li Peng, spokesman for Asia Footwear Association, more than 1,000 shoe factories in Guangdong province closed down last year.The firms went bankrupt due to high costs driven by the removal of an export tax refund, a stronger yuan, rising raw material prices and labor costs, Li said.The stronger yuan also makes imports cheaper, which is one reason behind the strength seen in Friday's data, Zhang said.The European Union remained as China's largest trade partner last month, with bilateral trade of .28 billion, up 30.1 percent year on year.The EU was followed by the United States. Trade between China and the US last month increased by 12.2 percent year on year to .23 billion, despite looming recession in the US economy.China's trade surplus last year stood at 2.2 billion, with total trade volume hitting a new high of .17 trillion, up 23.5 percent from a year earlier.

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Hong Kong' benchmark Hang Seng Index plunged 5.18 percent on Monday to close at its lowest level this year, drawn by growing troubles in the global credit markets and weakness in the Chinese mainland bourses.     The Hang Seng Index fell 1,152.50 points, or 5.18 percent, to close at 21,084.61 on Monday, its lowest level in nearly seven months, amid worries on the near collapse of U.S. investment bank Bear Stearns.     Over the weekend, the subprime mortgage crisis claimed another major victim -- Wall Street's fifth largest investment bank Bear Stearns. Wall Street fell sharply on Friday on the news, followed by Asian markets.     The benchmark Hang Seng Index opened at 21,318.03 and fluctuated between 21,041.26 and 21,473.40 during the session. Turnover was at 94.37 billion HK dollars (12.16 billion U.S. dollars), up from last Friday's 88.28 billion HK dollars (11.32 billion U.S. dollars).     Three of the four major categories lost ground. The Properties lost most at 5.73 percent, followed by the Commerce and Industry at 5.58 percent and the Finance at 5.32 percent. The Utilities, the only gainer, edged up 0.21 percent.     The biggest decliners in the local benchmark index were mainly China-based companies. Index heavyweight China Mobile fell 4.6 percent to 102.50 HK dollars. Smaller rival China Unicom slid 4.6 percent to 16.32 HK dollars.     Shenhua Energy fell 8.9 percent to 32.95 HK dollars, and Ping An Insurance was down 7.6 percent at 53.20 HK dollars.     The Chinese mainland's biggest insurer, China Life Insurance, slid 7.4 percent to 25.70 HK dollars. Non-life insurer PICC P&C tumbled 11.5 percent to 6.48 HK dollars.     Air China, Chinese mainland's biggest international carrier, lost 50 cents or 8.5 percent at 5.40 dollars as oil continued its relentless climb to a fresh high of 111.80 in Asian trade Monday on a weaker dollar. The company will report its 2007 results later Monday. The mainland's biggest airline by fleet size, China Southern Airlines skidded 73 cents or 12.5 percent to 5.13 dollars.     PetroChina, Asia's biggest oil and gas company, dropped 6.6 percent to 9.42 HK dollars. Major oil firm Sinopec fell 8.1 percent to 6.14 HK dollars on investor concerns about steep losses at its refining division given the recent surge in crude prices.     Property stocks tumbled, in line with the downward trend in the overall market, and on reports of softening housing prices in the city's new territories.     Sino Land Co, which has the highest exposure to the local residential market, fell 11 percent to 15.42 HK dollars.     Asian billionaire Li Ka-shing's property flagship Cheung Kong Holdings, fell 5.7 percent to 99.05 HK dollars.     Hong Kong's biggest property developer, Sun Hung Kai Properties Ltd (SHK Properties), slumped 4.8 percent to 112.60 HK dollars.     CLP Holdings and Hong Kong Electric were the only gainers in Monday's trade as CLP Holdings up 1.1 percent to 65.30 HK dollars and Hong Kong Electric rose 3.3 percent to 50.90 HK dollars.

Communist Party of China (CPC) and Taiwan's Kuomintang (KMT) must "hold hands" to cooperate and to prevent crisis across the Taiwan Strait, Hu Jintao, general secretary of the CPC told a visiting delegation. Hu Jintao (R), General secretary of the Communist Party of China shakes hands with Lien Chan, honorary chairman of Kuomintang at the Great Hall of the People in Beijing April 28, 2007. [Reuters]"Let us hold hands to cooperate, prevent Taiwanese independence and preserve cross-strait peace," Hu said in welcoming Lien Chan, honorary chairman of the KMT, who is attending the third annual Cross-Strait Economic and Cultural Summit in Beijing today and tomorrow. Lien and more than 300 party officials and business leaders arrived in Beijing yesterday after touring provincial cities where they were welcomed by local officials. Lien met with Hu in 2005, and again last year, ending more than 60 years of animosity with the Communist Party. This meeting "will be a reiteration of their consensus for party-to-party cooperation to promote cross-strait peace," Philip Yang, a political science professor at National Taiwan University, said in a phone interview yesterday from Taipei. Win-Win The summit, which is focusing on direct flights, tourism and education, is taking place at a time when Taiwan's Democratic Progressive Party is accelerating efforts to split China's sovereignty. "We must insist on a win-win goal," Lien said to Hu. "Building mutually beneficial relations is a global trend. We must work closer together to achieve this." Since Lien's historic meeting with Hu in 2005, Beijing has allowed Taiwanese professionals to be accredited on the Chinese mainland and given Taiwanese students equal treatment in mainland universities. Cross-strait charter flights for Taiwanese investors living on the mainland have been expanded to all major holidays. In addition, Beijing opened its markets for tariff-free imports of Taiwanese fruit. Pandas Rejected The mainland offered Taiwan a gift of a pair of pandas, which "President" Chen Shui-bian and his "government" rejected. Beijing also offered to allow the Olympic torch relay to cross Taiwan's soil as a sign of goodwill in the run-up to the 2008 Beijing Olympic Games. The DPP-led "government" has promoted Taiwanese ethnic identity and tried to eliminate mainland culture, a move contrary to the interests of most Taiwanese, Lien said in his opening speech to the summit. "The DPP has reversed growth, caused political tensions and isolation and escalated an arms race and economic marginalization for Taiwan," Lien said. The DPP's moves are "dangerous and escalate cross-strait military tensions," Jia Qinglin, chairman of the mainland top political advisory assembly, said at the beginning of the summit.

BEIJING - China's food watchdog issued an emergency circular on Wednesday to ensure food safety in the face of severe winter weather that has blocked transport and endangered supplies in much of central, eastern and southern China.The State Food and Drug Administration (SFDA) ordered all the local food and drug bureaus to tighten inspections of food production and sale facilities so as to prevent inferior or fake food from entering the market.The snow, the heaviest in decades in many places, has been falling in China's east, central and southern regions since January 10, causing building collapses, power blackouts, highway closures and crop destruction.The SFDA ordered all local bureaus to maintain food market order and to prosecute law violations, noting supplies of some foods was already tight.The extreme weather in the past two weeks hit as Chinese travelers began one of the world's biggest annual mass migrations for the Chinese Lunar New Year, or the Spring Festival, the most important festival for Chinese family gatherings.The SFDA also ordered local bureaus to promptly report and tackle emergencies and prevent mass incidents of food poisoning.

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BRUSSELS - Javier Solana, European Union top diplomat, expressed here on Thursday his concern over Taiwanese leaders' comments on the Chinese province's application for UN membership."I have noted with concern the comments made by Taiwan's leadership on October 24 concerning Taiwan's application for UN membership under the name of Taiwan," Solana said in a statement."The EU has a substantial interest in peace and stability in East Asia. It has a particular interest in the continued prosperity and security of Taiwan and in the maintenance of peaceful relations across the Taiwan Strait," he said.    The fundamental position of the EU is that the Taiwan question must be solved peacefully through cross-Strait negotiations between all concerned parties."We have concerns about the current policy of Taiwan's authorities to pursue a referendum on the question of UN membership in the name of Taiwan," Solana said, adding "This concern flows from the EU's conviction that both sides of the Strait should refrain from statements or actions which might raise tension across the Strait and which might be perceived as a unilateral change in the status quo."The proposed referendum would risk making it harder for Taiwan to enjoy the pragmatic participation in the activities of specialized multilateral fora, "when there are clear public interests for this and when statehood is not required." he said"I therefore want to encourage both sides to take further initiatives aimed at promoting dialogue, practical cooperation and confidence-building," he concluded.

SHANGHAI: In a fresh sign of China¡¯s financial strength, a leap in the shares of Industrial & Commercial Bank of China Monday made it the world¡¯s biggest bank by market capitalisation, overtaking US giant Citigroup. ICBC¡¯s Shanghai-listed A shares surged 2.68% to 5.75 yuan, giving it a market capitalisation of 4bn, according to Reuters calculations. That exceeded the 1bn capitalisation of Citigroup, previously the world¡¯s biggest bank, when its shares closed at .73 in New York on Friday. HSBC Holdings was in third place with 5bn. Shares in ICBC, which listed in Shanghai and Hong Kong last October, have gained 15% this month on the back of a rally in China¡¯s booming stock market as well as strong growth in the bank¡¯s own earnings. Weakness in Citigroup¡¯s share price, and appreciation of the yuan against the dollar have also shifted market values in favour of ICBC. But some analysts believe ICBC¡¯s ballooning capitalisation may also be a sign of a dangerously overheated Shanghai stock market as speculating Chinese investors pour money into shares. ICBC, a state-controlled behemoth which is trying to modernise a creaky branch network operating almost entirely inside China, reported income of bn last year. Citigroup, one of the world¡¯s most sophisticated financial institutions with operations around the globe, reported income almost four times as large, at bn. ICBC¡¯s share price yesterday valued it at 28 times analysts¡¯ forecasts for its earnings per share in 2007, far above 11 times for Citigroup and an average of 16 times for major global banks, according to Reuters Estimates. ¨C Reuters

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BEIJING - The Chinese Academy of Social Sciences (CASS), the country's top think tank, published its eighth annual report on Monday and introduced a new international strategy.The report - "China's Modernization 2008" - proposed a brand new concept, the so-called "Peace Dove Strategy".The strategy, with the principle of "Follow the UN Charter and Promote World Peace", calls for the building of a favorable international environment for China's modernization.The "Peace Dove Strategy" makes the United Nations the head of the Dove.Asian nations are the foreside; the Asia-Pacific Economic Cooperation is the eastern wing, and the proposed "Asia-Europe Economic Cooperation", which is upgraded from the existing Asia-Europe Meeting, is the western wing.South America, Oceania and Africa bring up the rear.The strategy, which centers on Asia and faces the world, calls for cooperation of all member nations on an equal, mutually beneficial basis.Under the strategy, China will optimize the structure of its international modernization strategy, increase its national capacity in international modernization, and improve the international environment for the country, according to He Chuanqi, head of the CASS Center on the Study of China's Modernization.The strategy was created drawing upon international experience of the past 300 years and the history and realities of China's international modernization, the official said.The report has been published and distributed as a single volume by the Beijing University Publishing House.

BEIJING - Chinese central government offices suffered a day without air-conditioning as they warmed to a campaign to cut energy consumption and improve energy efficiency, Xinhua news agency said on Wednesday. Tuesday's campaign, dubbed "experiencing energy shortage", targeted offices and government departments under the State Council, the nation's cabinet. "Beijing was not as sun-burning as previous days on Tuesday, but the overcast weather still made people sweat in the afternoon," Xinhua said. China's capital has unleashed "energy police" to enforce limits on air-conditioner use as the government pushes to save power and clean polluted skies, state media said this week. China last year vowed to cut energy consumption for every unit of economic activity by 20 percent by the end of 2010. But feverish economic growth has so far defied the target. The government's latest weapon is 22 officials who will check whether offices, hotels, malls and other big buildings in Beijing are observing a demand to set air conditioning no cooler than 26 degrees Celsius (79 Fahrenheit), the Beijing News reported. Worried that the nation cannot sustain resource-sapping growth, the central government has repeatedly ordered officials and companies to save energy. Efforts to clear the capital of pollution have taken on a new urgency with the 2008 Beijing Olympics just over a year away. Chinese President Hu Jintao and other officials have said the country is committed to emission reduction, but refused mandatory caps. Beijing has held up its voluntary energy saving measures as an important contribution to fighting global warming, and called for more technological help for clean energy.

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