THE GAS MISSION By early August, restoration of the main pipelines for transporting natural gas from Sichuan to Shanghai have been completed. The picture shows a factory for purifying natural gas in Sichuan Province (DENG LIANGKUI)

'No' to Tire Protectionism

China's Ministry of Commerce reiterated on August 3 that the United States should heed the call from its own industries and not impose protectionist measures on tires imported from China.

The U.S. Tire Industry Association, the American Coalition for Free Trade in Tires, the American Automotive Trade Policy Council, and the Retail Industry Leaders Association have all expressed strong opposition to the planned sanctionative moves.

The comment came after the U.S. International Trade Commission (ITC) issued a statement on June 29 recommending decreasing tariffs to 55 percent, 45 percent and 35 percent over the next three years on motor vehicle and light truck tires from China.

Tightening Control

China will modify rules on domestic banks' derivatives operations after financial institutions suffered losses during the global downturn, said the Chinese Banking Regulatory Commission (CBRC) on August 4.

Banks are required to explain or introduce the use of derivatives products to their clients in an "understandable and clear" way, so that they would fully realize potential risks, said CBRC.

Banks should be responsible for providing institutions and companies with timely information about products, and reassess their value for clients.

CBRC said it would keep a close eye on lenders' activities and strictly monitor derivatives products transactions.

Supporting Dairy

The Ministry of Finance has planned to continue subsidizing dairy companies that are stuck in a fiscal predicament.

The government will pay for bank loan interests of up to 75 million yuan ($11 million) for dairy companies that purchase raw milk from farmers whose interests were hurt by the melamine-tainted milk scandal.

The subsidy covers 3.11 percentage points of the loan interest rates, the ministry said on July 27.

The Chinese dairy industry suffered a major setback after milk powder produced by Sanlu Group was contaminated by melamine, which caused the death of six children and resulted in more than 300,000 others falling ill.

To Be Listed

HSBC Holdings Plc. could soon be listed in the Chinese mainland stock market next year, HSBC Chairman Stephen Green said, but the proposal is still waiting for government approval.

Industry insiders expect HSBC to raise $3-5 billion in the Shanghai stock market.

HSBC, the biggest foreign lender in China, said it aims to increase its branches on China's mainland from 87 to 100 by the end of this year.

Earlier this year, the Chinese Government had come up with rules allowing foreign companies to be listed in China's mainland stock markets. HSBC is expected to be the first foreign company to launch initial public offerings in the mainland.

Toshiba's New JV

The Japanese loss-making Toshiba Mobile Display Co., which makes small and midsize LCD monitors, reportedly planned to set up a joint venture with Chinese LCD maker Greentech Group.

The venture's goal is to tap the vast potential of the Chinese market by producing high-resolution displays using low-temperature polysilicon and organic light-emitting diode technology.

The company is likely to take less than a 20-percent stake in the joint venture. Greentech is expected to take a 60-percent stake, while a Hong Kong investment fund will take the remainder, according to the Nikkei Business Daily.

Toshiba Mobile Display reported an operating loss of 36.2 billion yen ($380 million) in the fiscal year ending in March and vowed to break even this year.