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TRADE WARS
China, Germany ink billions in deals, differ on rights
by Staff Writers
Berlin (AFP) June 28, 2011

Chinese Prime Minister Wen Jiabao and German Chancellor Angela Merkel address a joint press conference at the chancellory in Berlin on June 28, 2011, after Germany's and China's first joint cabinet meeting. Chinese and German firms signed $15 billion worth of deals during a visit to Berlin of business and political leaders, Premier Wen Jiabao said. Photo courtesy AFP.

Germany and China inked more than $15 billion in business deals after their first joint cabinet meeting Tuesday, Chinese Premier Wen Jiabao said as he warned Europe not to meddle in Beijing's internal affairs.

The new contracts, including one for the purchase of 88 A320s from European aircraft manufacturer Airbus, were signed at a press conference with Wen and Chancellor Angela Merkel after the gathering of German and Chinese ministers.

Berlin rolled out the red carpet during the two-day stay of the Chinese delegation, starting with an informal dinner for Wen and his inner circle hosted by Merkel at a lakeside villa Monday.

But Wen insisted Tuesday that despite "growing and deepening ties," he would not accept lectures on human rights or the rule of law from European partners.

"China respects the political system and the development model chosen by the citizens of the EU," he told a conference of German and Chinese business leaders at a Berlin hotel.

"In exchange, we expect from the EU respect of our sovereignty, our territorial integrity and the autonomous choices of the Chinese people."

At the press conference, Merkel welcomed the recent release of prominent Chinese dissident Hu Jia and outspoken artist Ai Weiwei from custody amid a government crackdown on dissent.

But she said that Germany expected Ai's case and others like it to receive a "transparent" handling by Chinese authorities.

Western nations including Germany had repeatedly urged Ai's immediate release and Berlin has expressed serious concerns about apparent restrictions on Hu and Ai including their freedom to speak to the media.

A close friend of the artist said Tuesday that Ai had been ordered to pay more than $1.9 million in back taxes and fines.

While Merkel welcomed Wen to her chancellery with military honours, a few dozen demonstrators waved Tibetan flags and shouted "Freedom for Tibet!" in German.

At the end of the press conference, a German protester held up a golden-coloured, waving cat figure emblazoned with Chinese characters with a club in its paw, which he called a "prize" for Wen.

"For the economy, for billions in deals," he shouted.

Wen looked at the man briefly before being led away by Merkel.

Relations between China and Germany hit a low point in September 2007 when Merkel hosted the Dalai Lama, Tibet's exiled spiritual leader whom Beijing brands a dangerous separatist.

After stops in Hungary and Britain, Wen said in Berlin that China had confidence in the European economy and the euro despite the debt crisis rocking the continent and was willing to "extend a helping hand.

"We are supporting certain countries according to their needs by buying a certain amount of their government bonds," he said.

Analysts estimate that China has already bought more than 40 billion euros of European assets this year but this has done little to curb the crisis.

The globe's number two economy, China, and number four, Germany, have seen trade volume rise by leaps and bounds in recent years, to hit a record 130 billion euros in 2010.

Both sides hope to boost the figure to 200 billion euros annually by 2015.

"We want to encourage (Chinese companies) to invest even more in Germany," Merkel said, adding: "You are welcome."

But amid German firms' concerns about protection of their intellectual property rights and widespread piracy in China, Merkel highlighted the need for "fair and reliable rules of play" between the two countries.

Airbus valued its order, which the German government had originally announced as being for 62 planes, at nearly $7.5 billion.

German car giants Volkswagen and Daimler also inked major deals with Chinese partners.

Ministers meanwhile signed a raft of agreements on deepening cooperation in areas including climate protection, energy efficiency, food safety, education and the arts.




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Wal-Mart to set up e-commerce HQ in Shanghai
Shanghai (AFP) June 28, 2011 - US retail giant Wal-Mart has said it signed an agreement with the Shanghai government to set up a China e-commerce headquarters in the city to boost its presence in the fast-growing market.

Under a memorandum of understanding signed on Monday, the company will strengthen collaboration with the city government on training of personnel and offer Chinese consumers "a wider selection" of products online.

"The scale of online sales in China is expanding rapidly and is projected to match US online sales in the next few years," Wan Ling Martello, Wal-Mart's executive vice president of Global eCommerce, said in a statement.

"We are very optimistic about China's e-commerce market and its growth potential," she said.

Wal-Mart announced last month it had agreed to buy a minority stake in Chinese online grocery store Yihaodian, or "number one store" in Chinese. It did not provide financial details of the deal.

Consumer online spending in China nearly doubled to 513.1 billion yuan ($79.3 billion) in 2010 from a year earlier, accounting for around three percent of total retail sales in the country, according to the China e-Business Research Centre.

That figure could exceed one trillion yuan in the next two years, the institute said in a report released early this year.

Highlighting the growing appeal of China's Internet market, foreign companies such as Adidas, Gap and Wal-Mart have opened online stores in the country, which has the world's largest web population at 477 million.

Wal-Mart's first quarter net profit rose three percent to $3.4 billion as strong international sales offset weakness in its home market in the United States.

Mexico, China, and Chile had the highest percentage sales increases for the quarter ending April 30 compared to last year, the company has said.





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TRADE WARS
China orders companies to use local accountants
Beijing (AFP) June 25, 2011
Overseas-listed Chinese companies should favour local accounting firms when selecting an auditor, the government said, amid growing concerns in foreign markets over China's auditing quality. The guidelines issued by the finance ministry on Friday say overseas-listed firms involved in finance, energy, communication and the military should select local accountants to "ensure the safety of nati ... read more


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