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China says imports to equal exports over five years
by Staff Writers
Beijing (AFP) Nov 4, 2011


China's total imports are expected to almost equal its exports over the next five-year period, the nation's commerce minister said in comments published Friday.

Chen Deming said total imports by the world's second-largest economy were expected to reach $10 trillion in that period, which would be "on a par with our exports", according to an article published on the ministry's website.

China's trade surplus has been ballooning over the years as a result of what its trade partners say is an unfair advantage linked to the country's yuan currency, which they claim is artificially kept low.

It hit $196 billion in 2009 and $295 billion in 2008, but fell to $183.1 billion last year.

Chen said imports would exceed $1.7 trillion this year, up from $1.39 trillion last year, as the government steps up efforts to expand domestic demand. By way of comparison, exports totalled $1.58 trillion in 2010.

But he said some countries had ignored China's efforts and sought to bash the country "for political reasons" by adopting trade protectionist measures and pressuring Beijing over its currency policies.

"Such attempts will not help resolve their own domestic strife; rather, they could negate our efforts to expand imports, crush global market confidence and cast a dark shadow over the recovery prospects of the world economy," he said.

The US Senate last month approved a bill that would punish China for alleged currency manipulation while US Secretary of State Hillary Clinton has suggested an international coalition could force Beijing to raise the unit's value.

But Beijing has defended its currency controls as necessary to protect its manufacturing sector, which employs millions of workers, and to prevent large capital inflows and outflows which could be damaging to the economy.

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Tingyi-Asahi to buy Pepsi bottlers in China
Tokyo (AFP) Nov 4, 2011 - Japan's Asahi holdings on Friday said its affiliate in China had signed a strategic tie up with Pepsi that will see the US drinks giant swap its bottling operations in China for a stake in the firm.

Packaged food manufacturer Tingyi-Asahi Beverages Holdings, or TAB, a joint venture between Asahi, Taiwanese-owned Ting Hsin Group and Hong Kong listed Tingyi, will buy 24 Pepsi bottlers in China from Pepsi's Far East Bottlers.

The deal will exclude the US firm's bottlers in Hong Kong, Macau and Taiwan. No figures were announced in the deal.

In return, Pepsi's Far East Bottlers subsidiary will indirectly take a 5 percent stake in Tingyi-Asahi Beverages via a new share issue arrangement.

The stake could increase to 20 percent if the US firm's subsidiary executes an option to buy additional new shares in 2015.

The deal will see TAB manufacture and sell soft drinks under the Pepsi brand and non-carbonated beverages including Gatorade and Tropicana as Pepsis anchor bottler in China.

Pepsi will retain branding, promotion and marketing responsibilities for these products.

Pepsi faces competition in China from fellow US giant Coca-Cola, which in August said it will invest $4 billion in China over the next three years, as it deepens its expansion into the world's second largest economy.



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TRADE WARS
Kirin takes control of Brazilian brewer Schincariol
Tokyo (AFP) Nov 4, 2011
Japanese beverage giant Kirin said Friday it has taken full control of brewer Schincariol after legal complaints brought by some of the family of the Brazilian company's founder. Kirin Holdings, which previously held 50.45 percent of the company, said it bought the remaining stake from Jadangil Participacoes e Representacoes Ltd. for 2.35 billion real ($1.35 billion). Schincariol is Braz ... read more


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