CII Communique - December, 2010

eport
heaters. The Chinese side will provide technology and
production line with its Indian partner as well as take
care of marketing. The total investment will be several
hundred million yuan.
India-China Trade (Jan-Sept 2010)
Trade Sept 2010 Jan-Sept 2010
Value $b Change Value $b Change
Total trade 5.093 24.5% 45.431 46.7%
China’s exports to India 3.78 41.6% 29.519 39.5%
India’s exports to China 1.313 -7.7% 15.912 62.1%
India’s trade deficit 2.467 98% 13.607 19.9%
China’s foreign trade (Jan-Oct 2010)
Trade
October
Value $b % Change Value $b
Jan-Oct
Total trade 244.81 24.0 2393.41 36.3
Exports 135.98 22.9 1270.59 32.7
Imports 108.83 25.3 1122.82 40.5
Trade surplus 27.15 14.1 147.78 -6.7
Source: MOFCOM, PRC
Export Quota Applications for Rare Earth
% Change
On 11 November, China announced conditions and
procedures for the export quota application of rare earth
and other industrial products for 2011. The rare earth
producers who are applying for export quotas need to
comply with these regulations on development plans,
policies and management of the rare earth industry and
obtain the ISO 9000 quality system certification.
China Auto Sales Up
Auto sales in China grew 34.76% from a year earlier
to 14.68 million units in the first 10 months of the
year, exceeding the total number of vehicles sold
last year. The expansion in the auto sector has also
triggered widespread concerns over the country’s
energy capacity, pollution levels and rising traffic
pressures.
Crude Steel Consumption
China’s apparent consumption of crude steel is likely
to reach 596 million tons this year with an increase of
5.6%. Crude steel output is likely to increase by 8.2%
to 624 million tons.
Iron Ore Imports from India Decline
In October this year, China’s imports of ore from India
stood at 2.91 million tons, down 39% since September
and 44% compared with the same period of last year.
India accounted for 6.4% of China’s total ore imports
in October, down from 9% in September and almost
20% in May.
Current Account Surplus Swells
China’s current-account surplus doubled in the third
quarter from a year earlier to $102.3 billion and the capital
and financial account surplus amounted to $5.7 billion for
the quarter. The current-account surplus increased 30%
to $204 billion in the first nine months of the year.
Assets of China’s Overseas Enterprises
At the end of 2009, China’s 12,000 domestic investors
had set up 13,000 outbound investment enterprises in
177 countries and regions worldwide, with total assets
of outbound investment enterprises exceeding $1
trillion. The net volume of outbound direct investment
was nearly $245.8 billion. About 24% of outbound
Chinese investment in the overseas market is in the
mining industry.
Huge Road, Rail Boost in Pipeline
China will set up an 85,000-km national freeway network
and a 40,000-km high-speed railway network during the
12th Five Year Plan (2011-2015). The freeway network
will cover all cities with a population of at least 200,000,
while high-speed railways will link cities with population
of over 500,000.
China’s FDI to hit $420 Billion
FDI in China in the ‘11th Five-Year Plan’ period (2006-
2010) is projected to reach over $420 billion. In the first
ten months this year, FDI reached $82.003 billion.
Japan
Bank of Japan Downgrades GDP Forecasts
The Bank of Japan has revised downwards its fiscal
2010 real GDP forecast to 2.1% from its July projection
of 2.6% and the forecast for 2011 to 1.8% from
1.9%.
Key Interest Rate
Japan’s central bank kept its key interest rate unchanged
at near zero (0.0%) and said it will start buying
government bonds under a previously announced plan
to help foster economic recovery.
Civil Servants Face 1.5% Pay Cut
The Japanese Cabinet formally approved a
recommendation of The National Personnel Authority
to cut the pay of national civil servants in fiscal 2010 by
an average of 1.5%, which would reduce their annual
62 | December 2010 Communiqué