FANCY FAIR The 2009 Dalian Industrial Exhibition is held on May 25-27. Nearly 1,000 enterprises from home and abroad displayed their latest machinery and chemical products (YAO JIANFENG)

Deepening Economic Reform

The State Council announced on May 25 a series of measures to deepen economic system reform to better fight the economic slowdown.

According to the announcement, the country will further deepen reforms of several key sectors like oil, electricity and railways and widen investment channels for private capital in those sectors.

Other measures include bolstering the service industry, increasing the income of farmers and improving the social security net to spur consumer spending.

In addition, the government will also further simplify the examination and approval procedures for outbound investments by Chinese companies.

Auto Restructuring

Shandong Province plans to merge its three auto parts makers-Weichai Group Holdings Ltd., Shandong Construction Machinery Group Co. Ltd. and Shandong Automobile Industry Group Co. Ltd.-in a bid to consolidate the province's fragmented auto parts industry, according to a recent report by the China Securities Journal. Details of the merger remain unclear.

The move is believed to be a curtain raiser for more restructuring of the industry in the province. The newly created titan is expected to earn annual revenue of 100 billion yuan ($14.6 billion) by 2012, said the report.

Earlier this year, the province had made clear its ambition to foster eight to 10 strong auto groups to strengthen the industry.

Credit Rating

China unveiled on May 23 its first sovereign credit rating standard in an effort to facilitate its participation in global credit rating.

The standard was announced by the Shanghai-based Dagong Global Credit Rating Co. Ltd., one of the country's oldest rating agencies. It will be able to evaluate the willingness and ability of a central government to repay its commercial financial debt, based on the country's overall credit situation including fiscal status and foreign exchange reserves, said the company.

Analysts believe the standard will help strengthen the transparency of global credit rating and improve China's position in global finance.

Tapping into China

The Denmark-based giant furniture retailer JYSK Group recently announced plans to set up China headquarters in Shanghai and open 500 stores across the country, according to a report by Shanghai Daily.

Its first batch of six to 10 stores will open in Shanghai by the end of next year, said the newspaper. The company now maintains operations in 32 countries and regions in the world, but has no presence in China.

"With the good condition of our capital flow, it's a good opportunity for us to increase investment in a bid to grow our market share globally while others may be hurt by the financial crisis," said Jakob Sonnenberg, China Manager of JYSK.

Trade Fair

Guangdong Province will organize a trade fair from June 18 to 20 to help foreign-funded businesses cope with the economic downturn, the Xinhua News Agency reported on May 26. The fair, the first of its kind, will provide about 2,500 free booths for businesses selling appliances, consumer electronics, toys, food, kitchenware, clothing and construction materials.

More than 1,000 companies have applied to attend the fair to be held in Dongguan. Organizers will offer free hotels and meals for the sellers and buyers.

The fair is expected to be a huge opportunity for foreign-funded companies in China that are suffering from the economic slowdown, said Wu Jun, Deputy Director of the Department of Foreign Trade and Economic Cooperation of Guangdong Province.