l        Ford Motor Company is to invest US$490m in an assembly plant in China to produce the next-generation Focus compact car, which it plans to sell worldwide.  The US motor giant will partner with Mazda and Chang’an in a joint venture in Chongqing, scheduled for completion by 2012.  This will be Ford’s second plant in Chongqing.

l        A US supplier of clean electric transportation and storage technologies is to establish two joint venture companies with Shenzhen Goch Investment (SGI).  SGI will invest US$10m in a joint company to manufacture and assemble electric vehicle charging equipment, and US$5m in a company to market and sell these charging systems in China.

l       The president and CEO of General Motors, Frederick Henderson, said that China has surpassed US to be the largest market for the automobile giant.  For the first nine months of 2009, GM’s sales in China totalled almost 1.3m vehicles, 56% up on the previous year.  Sales in September were at an all-time monthly record.  GM, the largest vehicle producer in China, last month launched a wholly owned science lab in Shanghai, which will focus on advanced propulsion technology, battery cells, mega-city safety resource, advanced vehicle development and light materials, GM said.

         More information about market research in the Automotive sector can be found at: http://www.b2binternational.com/China/b2bsectors/automotive.php 

Sources: CBBC, Xinhua, Financial Times, Wall Street Journal, FCO Country Updates and other news sources.

l          The US networking and communications technology company Cisco has entered into a strategic relationship with Chongqing municipality, under which the US company will work to advance Chongqing’s IT manufacturing industry, promote innovation and R&D in green technologies, and support China’s ‘green growth’ strategy. Cisco and Chongqing will work to increase investment, support local innovation and sustainability, and accelerate the internationalisation of local enterprises.

l          The dominant Chinese search engine Baidu has announced that many of its popular services will be pre-installed on next-generation mobile phones from the local carrier China Unicom. Baidu’s services including its internet search, free music download search and message forum will all be pre-installed on 3G handsets, Baidu said. Baidu will also provide search capabilities for mobile internet web sites run by the carrier, which planned to launch the iPhone in China in October.

         For more about our Information Technology market research services in China and Asia, please click here.Alternatively, to find out more about our Telecommunications sector market research, click here.

Sources: CBBC, Xinhua, Financial Times, Wall Street Journal, FCO Country Updates and other news sources.

Nuclear

• China’s State Council has approved the construction of a new nuclear plant in its eastern coastal region, the latest step in Beijing’s plan to include more clean energy in the country’s consumption mix.  In the first phase of the Haiyang nuclear power station in Shandong province, two reactors will be built, both using Westinghouse Electric’s AP 1000 third generation technology.

Oil

• China has acquired a £600m stake in Kazakhstan’s second biggest oil producer, which is developing 41 oil and gasfields in the country and has 1.8 billion barrels of reserves.

Wind

• The Swedish industrial company SKF reported that it had received orders worth more than £29m from Chinese wind turbine manufacturer Sinovel Wind Co.  The contracts concern the supply of main shaft bearings and sealing systems for 3MW wind turbines, and are part of a partnership agreement.

• China is on track to meet ambitions targets for moderating greenhouse gas emissions, according to a report by independent climate change think-tank E3G.  Reforestation and a low-carbon transport sector, as well as improvements in energy efficiency and investments in renewable power, had combined to restrict the growth in its anticipated greenhouse gas emissions, said E3G.

Sources: CBBC, Xinhua, Financial Times, Wall Street Journal, FCO Country Updates and other news sources. 

Environmental considerations are increasingly moving to the fore and now play a part in many of the market research projects we undertake.  Here is an update on recent environmental news stories from within China:

• The European Commission plans to establish an investment scheme, possibly a public-private partnership, to co-finance the design and construction of a power plant to demonstrate carbon capture and storage technology in China.  Funding of up €50m (£44m) will go into the construction and operation phase of the plant, which could cost a total of €300-€550m (£260-£480m).  The remaining funding is to be sought from China, EU and other European states and industry, said the Commission, inviting support.

• One of the USA’s largest coal-burning power companies, Duke Energy Corp, has signed a deal with China’s largest utility, China Huaneng Group, to develop ways to cut greenhouse gas emissions.  The two countries currently account for 40% of the world’s total emissions.

• The Chinese government will offer retailers a 50% subsidy for using energy-saving lights, according to Taiyuan Bureau of Commerce.  Taiyuan is one of 10 Chinese cities that began a pilot project last year to promote energy savings in the retail sector.  Using energy-saving lights will allow Taiyuan’s retailers to save about £5.5m annually, it is claimed.

• China is turning from a 100% importer of power plant catalysts into the world’s largest supplier, reports the US analyst McIlvaine Company.

Sources: CBBC, Xinhua, Financial Times, Wall Street Journal, FCO Country Updates and other news sources.

Chongqing Energy Saving and New Energy Automobile Alliance has been established in Chongqing.  It is headed by the vehicle maker Chana, and comprises around 30 car makers, automotive component manufacturers and research institutions.  The Chongqing government is providing support, including Yn1 billion (£99 million) in funds and facilities.  The alliance’s aim is to increase Chongqing’s competitiveness in energy saving and vehicles using renewable fuels.

Sources: CBBC, Xinhua, Financial Times, Wall Street Journal, FCO Country Updates and other news sources.

China’s national stimulus package has benefited energy conservation and emission controls, with energy used to generate growth dropping further in the first quarter, according to the National Bureau of Statistics.  Energy intensity, or the amount of energy needed to generate a unit of GDP, dropped 2.9% year on year from the first quarter of this year.  Overall energy consumption grew only 3% in the first quarter from a year earlier, while the economy expanded 6.1%, the bureau said.

Sources: CBBC, Xinhua, Financial Times, Wall Street Journal, FCO Country Updates and other news sources.

Coal

The European Commission announced that it would provide financing of up to Euro50m (£47m) to help China build a coal-fired power plant equipped with new technology to give it near-zero emissions.  Europe deems the carbon capture and storage technology, which is in its infancy, to be a key factor in fighting climate change, and a demonstration plant would be particularly significant in China, which produces and uses huge amounts of coal.

Oil

Tianjin’s municipal government announced recently that its Binhai New Area would be one of eight state strategic crude oil reserve bases.  China Petrochemical Corporation (Sinopec) will begin to build the bases within this year.

Power

China’s power generation rose 3.6% year on year in June, ending eight consecutive months of decline since October last year, according to the State Grid Corporation of China (SGCC).  The increase demonstrated a strong rebound, compared to a 3.5% fall in May.  The country’s total power generation reached 309m MW in June, according to the SGCC’s power dispatch centre.

Sources: CBBC, Xinhua, Financial Times, Wall Street Journal, FCO Country Updates and other news sources.