Subject: CHINA IMP/EXP NEWS (12/13/93)

From: [email-masked] (wangc)
Date: Tue, 14 Dec 93 00:47:34 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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                      December 6, 1993 (CN931206)

CONTENTS                                                           LINES
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A) Goods Wanted (10 items)...........................................129
B) Goods for Sale (3 items)...........................................29
D) China market watch (5 items)......................................210
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   &  NOTES: Contact information for goods wanted or for sale is   &
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A: Goods Wanted (10 items)......................................129 lines
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1) (3 9233) USED PLASTIC BOTTLES, FLASKS AND SIMILAR ARTICLES (#B9312131) 
     
    A. Detailed product description: scrap p.e.t. plastic bottles
       for recycling.
    B. Product specification/technical data: plastic bottles,
       flasks should be in pressed cubes suitable for recylcling
    C. Quantity: 20 foot by 20 foot container per month
    D. U.S. dollar value: Unknown
    E. Purchase needed by: December 15, 1993
    F. Other information: Payment terms is letter of credit
       shipping terms is C.I.F. Zhu Hai, Guangdong, China.  End user is
       recycling plant in Asia.

2) (90281) PRODUCTION LINE FOR ADVANCED GAS-POWERED TOOLS (#B9312132)

    A. Detailed product description:  Production line for
       advanced gas-powered tools
    B. Product specifications/technical data:  Capacity 200,000 PCS/A.
    C. Quantity:  One set
    D. US dollar value:  N/A
    E. Purchase needed by:  1993-1994

3) (85071) THE KEY EQUIPMENT AND TECHNOLOGY FOR
           PRODUCING CYLINDER LITHIUM BATTERIES (#B9312133)
    
    A. Detailed product description:  The key equipment and
       technology for producing cylinder lithium batteries
    B. Product specifications/technical data:  Capacity 3000,000 PCS/A.
    C. Quantity:  One set
    D. US dollar value:  N/A
    E. Purchase needed by:  1993-1994

4) (8417)  EQUIPMENT AND TECHNOLOGY FOR ESTABLISHING A
           RECYCLING PLANT OF SOLID WASTE (#B9312134)

    A. Detailed product description:  Equipment and technology for 
       establishing a recycling plant of solid waste
    B. Product specifications/technical data:  The planned plant shall 
       be able to dispose of 2,000 mt or 1,000 mt waste per day.
    C. Quantity:  One
    D. US dollar value:  N/A
    E. Purchase needed by:  April 1994

5) (84771) TECHNOLOGY AND EQUIPMENT FO VARIOUS KINDS OF RUBBER GOODS 
           AND PETROLEUM BORING SOFT PIPES (#B9312135)

    A. Detailed product description:  Technology and equipment for producing 
       all kinds of rubber goods and petroleum boring soft pipes
    B. Product specifications/technical data:  None
    C. Quantity:  One set
    D. US dollar value:  About $3,000,000
    E. Purchase needed by:  1993-1994

6) (84748) COMPLETE PRODUCTION EQUIPMENT FOR
           PIEZOELECTRIC CERAMIC RESONATOR (#B9312136)

    A. Detailed product description:  Complete production equipment for 
       piezoelectric ceramic resonator with annual capacity 
       of 100,000,000 pcs/shift
    B. Product specifications/technical data:  
       Frequency range: 375-800 khz, 1.8-6.0 mhz or 6.0-13.0 mhz
    C. Quantity:  One complete production line
    D. US dollar value:  N/A
    E. Purchase needed by:  april 1994

7) (7204) PRODUCTION LINE FOR STEEL TUBES 
          AND FOR SECTION STEEL COATING (#B931213)
        
    A. Detailed product description:  Production line for
       steel tubes and for section steel coating
    B. Product specifications/technical data:  
       Capacity 1,700,000 square meter and 20,000 tonnes
    C. Quantity:  One set
    D. US dollar value:  $850,000
    E. Purchase needed by:  1993-1994

8) (72131) STEEL BARS FOR REINFORCEMENT OF CONCRETE BUILDINGS
                           (#B9312138)

    A. Detailed product description:  Steel bars for reinforcement 
       of concrete buildings
    B. Product specifications/technical data:  
       Bar diameter: 12, 15, 18, or 20
    C. Quantity:  50,000 tons
    D. US dollar value:  open
    E. Purchase needed by:  No later than the end of JAN. 1994

9) (73021)  RAILS (#B9312139)

    A. Detailed product description:  Rails of 50 kg per
       meter or 60 kg per meter
    B. Product specifications/technical data:  50 kg per
       meter or 60 kg per meter
    C. Quantity:  10,000 tons
    D. US dollar value:  Open
    E. Purchase needed by:  No later than the end of JAN. 1994

10) (31053)  DIAMMONIUM PHOSPHATE (#B93121310)

    A. Detailed product description:  Diammonium phosphate
    B. Product specifications/technical data: 
       Molecular formula:  (NH4)2HPO4;  Molecular weight:  132.056; 
       %N: 18 percent min;  Total P content:  46 percent min; 
       Solubility in water:  40 percent min; 
       Moisture content: 2.5 percent max; 
       Size:  1-4mm 90 percent min;  Packing: In Bulk
  
    C. Quantity:  Open
    D. US dollar value:  Open
    E. Purchase needed by:  JAN. 1994

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B: GOODS FOR SALE...............................................29 lines
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1) SCRAP METAL (#S9312131)  

    A. Product Description: Scrap metal for reprocessing 
    B. Specification: Heavy Melting Steel No. 1 and No. 2 (HMS-1 and
       HMS-2) according to ISRI codes
    C. Price: Dependent on quantity 
    D. Payment method: Letter of credit
    E. Reward: Commission will be allocated for those who help finish 
       the deals or locate buyers in China.

2) GREY PORTLAND CEMENT (#S9312132)

    A. Product Description: Portland cement for use in construction
    B. Product Specification: Grey Portland Cement according to BSS 12/1978
    C. Price: Dependent on quantity 
    D. Loading Place: CIS countries or East Europe
    E. Payment method: Letter of credit
    F. Reward: commission will be allocated for those who help finish 
       the deals or locate buyers in China.

3) BARGIN FREIGHT TO CHINA (#S9312133)
   
  There are two used ships sold to China. The ships are to be delievered  
  to China in January, 1994. Some shipping spaces are still available, 
  Bargain rates will be offered to those who ship their goods to China.

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C: China Market Watch (3 items).................................195 lines 
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1) IMPENDING FOREIGN TRADE LAW IN CHINA WILL PROMOTE FAIR TRADE 
 
[CIEN, BEIJING] China is hammering out its first foreign trade law  as
the country's re-entry to the General Agreement on Tariffs and Trade 
(GATT) looms.

A top official says the impending law will bring major changes to
China's current foreign trade regime and mesh it with international
practice.  "China has made substantial progress in negotiations on its
re-entry to GATT, and the announcement of the law before our access
will be of profound significance," Wang Dianguo, Director General for
Treaty and Law at the Ministry of Foreign Trade and Econ omic
Co-operation (MOFTEC), according to China Business Weekly.

He did not reveal the specific time-table, only saying the draft law
has been submitted to the Standing Committee of the National People's
Congress, China's highest legislative body, for approval.

The thrust of the law will be "to impose a uniform nationwide foreign
trade policy and promote open and fair business," Wang said.  "The law
will see to it that foreign trade will mainly be regulated by such
economic means as exchange rates, taxation and credit."

A major reform will be the introduction of auctions and public bidding
for export quotas, which have been allocated by administrative orders
in the past, Wang said.  Only a few commodities will fall under quota
controls. "Both the bidding and auction system must ensure the quotas
are used to their best effect," he said.

The eight-chapter draft law makes MOFTEC the core manager of  China's
foreign trade. He said enterprises will still need licences to engage
in foreign trade. "The law prevents individuals or foreign businesses
from setting up foreign trade companies in China," he pointed out.

The conditions for restricting or prohibiting imports and exports of
goods are also stipulated in the law.  Detailed lists of such goods
will be announced later by the State Council, China's cabinet.

In another move, Wang revealed that China was working on anti-dumping
and anti-subsidy regulations.  "We've hammered out the drafts, which
are expected to be submitted to the State Council for approval and
publication before the end of the year," Wang said.

The three regulations in the pipeline are aimed at cultivating the
market economy, preventing unfair competition and protecting domestic
infant industries, he explained.  Wang also protested against
"discriminatory action" adopted by certain countries in imposing
anti-dumping measures on Chinese commodities.

He said China should no longer be looked upon as a planned economy.
"Our foreign trade has been working on a market basis," he added.  He
urged certain countries to consult with China before imposing
anti-dumping measures. "We're firmly opposed to their unilateral
action."

"If these countries spot a Chinese company involved in dumping, they
should punish this company only. They should not impose anti-dumping
measures on the whole Chinese industry," he said. Wang also said China
is reviewing its policies regarding the use of foreign investment.

Some amendments will be made to further benefit foreign investors, he
said, but did not elaborate. He said MOFTEC is working on a regulation
on the establishment of Sino-foreign stock joint ventures.

2)  FOREIGNERS TO RETAIN SPECIAL TAX STATUS IN CHINA 
 
[12-05-93, Reported by Yu Wang] China's new uniform income tax rate for 
domestic and foreign enterprises will not rode the current favourable 
treatment for the latter, a senior official says.  Zhang Zhongcheng, 
chief economist of the State Taxation Administration, which masterminds
the country's tax reforms, says the income tax rates for the two types of
enterprises will be unified at a proper time in the near future.

The unification comes after the introduction of new individual income
taxes and turnover tax rates on domestic and foreign enterprises, which
take effect on January 1.  Although a specific timetable for a uniform
income tax rate on enterprises is not available, a lot of
foreign-funded enterprises in China are worried about a possible
erosion of their preferential treatment.

For now, foreign-funded enterprises generally have an income tax rate
of 24 per cent, far below the 55 per cent for their Chinese State-run
counterparts. The two rates are expected to converge at 33 per cent as
soon as China moves closer to rejoining the General Agreement on
Tariffs and Trade (GATT), which advocates fair international trade.

Zhang says China will seek to preserve the preferential treatment for
foreign-funded enterprises through other measures. For example, the
State could rebate some of the money to those enterprises after levying
33 per cent tax on them.

"In this way, we'll ensure the enterprises' tax burden will not worsen
after the reform," Zhang explained. But he says the rebate for
foreign-funded enterprises will only be given if these enterprises pay
the full tax levied. Zhang says a uniform income tax rate for domestic
and foreign enterprises will help the two compete on an equal footing.
In the past, domestic enterprises have complained about the much higher
tax rate they have to pay compared to their foreign counterparts.  But
the former has in the past had one advantage: They could repay bank or
government loans before paying  their taxes -- but  they will no longer
be allowed to do so next year. Also, China will apply a uniform
individual income tax rate on Chinese and foreign taxpayers from next
year on, but in most cases this will not increase their tax burden.

Chinese and foreigners face the same taxation standard, but their tax
ceilings are different. For Chinese, an individual has to pay  tax if
his or her monthly salary and bonus (excluding certain State
allowances) surpass 800 yuan ($138). The taxable income is what is left
after a deduction of 800 yuan. Nine progressive brackets from 5 to 45
per cent are applied to different taxable earnings. Say, the 5-per-cent
rate is applied to taxable income below 500 yuan ($86). But if the tax
base is more than 100,000 yuan ($17,241), the tax rate will be 45 per
cent. The same tax rates apply to foreign taxpayers as well.

What is different is that foreigners' tax base will be calculated after
a deduction of much more than 800 yuan -- however the ceiling has yet
to be decided by the State Council, China's cabinet, in line with the
living standards of foreign taxpayers and the changes in the RMB
exchange rate.

3) SINOTRANS PLANS BIG EXPANSION NEXT YEAR 
 
[12-05-93, Reported by Yoing Wang] Sinotrans, China's largest foreign 
trade transportation company, will become a diversified conglomerate 
next week.

The move will place Sinotrans on a solid base in the transportation
sector in face of growing competition from newly-emerged companies
nationwide, says Sinotrans President Wu Bingze. The new Sinotrans Group
will have 496 member companies at home and abroad, spanning such
sectors as transportation, storage, trade, manufacturing, service and
information.

Wu says a corporate finance company will be set up to collect funds
from inside and outside the group for large projects. The finance
company will have the right to deal in a lot of banking business,
except for attracting deposits and certain other areas of banking. Wu
says the Sinotrans Group will also be allowed to engage in the domestic
transportation business. In the past, China's foreign trade companies
have been prohibited from getting involved in domestic work. "We'll
start our transportation business along the eastern coast starting next
year," he said in an interview with Business Weekly.

The brisk coastal transportation scene, which has a large potential for
development, will give Sinotrans a headstart in cementing its foothold
in domestic markets. Wu points out that China's north-south
transportation is still lacklustre and shouldn't just rely on railways
to improve. And analysts say China's plan to allow more domestic
automobile sales underlines the need to spruce up nationwide
transportation. Wu says another new business niche for his group will
be the transportation of oil products.

"We estimate our net profits this year at more than 300 million yuan
($51 million)," he says. As business increases, he says Sinotrans Group
will buy more new and second-hand ships from abroad. His company
recently bought four ships from Germany and two from South Korea. "We
plan to open more international lines next year," he says. Direct
flights between China and the United States, South America, Southeast
Asia, the Red Sea and the Gulf will be strengthened," he says.

He says his company is also considering setting up a factory in Brazil
involved in forestry. His company earlier set up one in New Zealand in
collaboration with Japanese partners. He says another $40 million will
be invested in the joint venture to start deep processing of logs. In
another move, his company is negotiating with some foreign businesses
about the establishment of joint venture distribution centres at home
for container transportation.

4) CHINESE COMPUTER COMPANY UNVEILS PENTIUM BASED PC

[AMEMBASSY BEIJING]
1.  Summary:  According to an article in the China Daily, (English, 
November 5, 1993) the Beijing Legend Computer Company unveiled a PC based
on Intel's new 586 (pentium) chip.  According to the article, this
computer was produced only several months after Intel placed its
advanced Pentium chip on the international market (No date was
specified).  

2.  Comment:  It is evident the Chinese market will not wait for U.S.
companies to bring in Pentium based products.  According to press
reports, at least some Pentium products were just decontrolled by the
U.S.  The new decontrol level is 67 million theoretical operations per
second.

3.  Further comment:  The Chinese computer market, like those of other
nations, is entering a watershed period:  Users will face an array of
"fast" solutions.  We do not yet know if the circuit design of the
Legend PC includes a bus which will allow full usage of the data
transfer rate possible with a Pentium device.  A spokesperson for
Legend tell us that the machine is not yet being sold, pending US
announcement of computer decontrols.  (FCS: MBRAZIL) HALLFORD

5) [Dec. 10, 1993, China Business Weekly] Expensive smile-- AD Prices.
 Some domestic newspapers are criticizing a Guangdong advertiser for
paying one of their models too much.  Although the average Chinese
earns only 500 yuan ($86) a month, Gong Li, a female Chinese film star,
was paid 1 million yuan ($172,414) for modelling in an air-conditioner
advertisement this year. The pay was the highest ever for a Chinese
model on the mainland. The usual pay for such modelling is about 10,000
yuan ($1,724). The Guangdong-based air conditioner plant expected
Gong's characteristic smi le would help bring in profits of 130 million
yuan ($20 million) this year. Gong won the Best Actress Award at the
Venice Film Festival in 1992. She has already signed another
million-yuan contract to shoot a cosmetic advertisement, according to
sources.

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