DESIGNING THE FUTURE: The 7th China International Industrial Design Expo is held on November 7-9 in Wuxi in east coastal Jiangsu Province. More than 100 enterprises from home and abroad brought their latest industrial designs to the show (CHENG BINHONG)

Spiking Fuel Prices

The National Development and Reform Commission (NDRC), the top economic planner, announced that it plans to raise gasoline and diesel prices by 480 yuan ($70.3) per ton, effective November 10.

The benchmark price of gasoline will be 7,100 yuan ($1,038.8) a ton and that of diesel at 6,360 yuan ($930.5) a ton, according to the NDRC.

The latest price hike aims to protect oil refiners' interests, ensure market supply and help lead rational consumption to promote energy saving and emission reduction, the NDRC said.

In addition, the NDRC said the country will resume fuel surcharges on domestic air routes to offset rising costs. In January this year, the NDRC suspended the surcharges due to a fall in kerosene prices.

Boosting Steel Mergers

China will encourage mergers and restructuring in the steel sector to help foster three to five producers among other international competitors, said the Ministry of Industry and Information Technology in a statement on its website on November 10.

The measure will address an array of structural problems in the steel industry, which has recently been plagued by severe fragmentation and backward production capacity, the statement said.

The ministry also pledged to regulate steel enterprises by enforcing standards on product quality, environmental protection, energy consumption, comprehensive utilization of resources and production scale.

Buying Spree

China Investment Corp. (CIC), the nation's $200-billion sovereign wealth fund, recently announced that it invested $1.58 billion to acquire a 15-percent share in AES Corp., a U.S. power company. CIC purchased 125 million shares at $12.60 each, the company said.

In addition, CIC has also signed a letter of intent with AES on the purchase of a 35-percent stake of its wind power subsidiary for $571 million.

The Virginia-based AES is a leading power company that is involved in the generation and distribution of thermal and renewable energy.

Prior to the acquisition, CIC had invested $858 million to purchase a 14.91-percent stake in the Hong Kong-based Noble Group, Asia's largest commodity trading company.

Expanding in China

Infor Global Solutions, the world's third largest software company based in the United States, is planning to expand its presence in China, which is expected to become the world's largest automobile market in the near future.

Tobin Alexander, Infor's vice president for automotive industry sales in Japan and the Asia-Pacific region, said the company plans to increase business in China's automotive industry and focus on small and medium-sized carmakers in need of additional software systems.

Consumer demand for automobiles in China is also pushing demand for software systems used by carmakers and parts suppliers, said Alexander, adding that the company is expecting double-digit growth in China this year.

Auto Market Blossoms

China's auto sales rose 72 percent year on year to 1.22 million units in October on the back of strong domestic demand boosted by government stimulus measures.

The figure was the second highest this year, but 7.64 percent lower than that of September, according to a report posted on the China Association of Automobile Manufacturers (CAAM) website on November 9.

In January, China cut the purchase tax on vehicles with engines of 1.6 liters or less from 10 percent to 5 percent to promote the sales of energy-saving vehicles. The CAAM predicted sales would continue to rise steadily in the next two months.