JOINING HANDS: Lin Zuoming (left), General Manager of China's Aviation Industry Corp., and Jeffrey R. Immelt, CEO of the General Electric Corp., shake hands. The two companies inked an agreement on November 15 on a joint venture operation to produce electronic products for Chinese C919 civilian airplanes (CHEN XIAOWEI)

European Business Trip

A Chinese delegation will leave for Serbia, France, the Netherlands and Ireland to further China-Europe economic cooperation, China's Ministry of Commerce (MOFCOM) announced on November 16.

MOFCOM spokesman Yao Jian said the delegation of more than 300 business people from some 170 enterprises would visit the four countries from November 21 to December 4.

The tour would involve negotiations with European enterprises in energy, aviation, automobile, telecommunications, machinery, and information technology sectors, Yao said.

The delegation would hold economic and trade cooperation forums with leaders of European enterprises, he added.

Euro-Asia Economic Forum

The 2009 Euro-Asia Economic Forum opened on November 16 in Xi'an, capital city of northwest Shaanxi Province, with the theme of "Working Together to Facilitate Economic Recovery."

The two-day forum attracted about 930 delegates from more than 60 countries and regions, including members and observers of the Shanghai Cooperation Organization (SCO) and the United Nations. Delegates from the world's top 500 companies also attended the forum.

They discussed how to fight the global economic downturn through cooperation in finance, energy, customs and business operations, as well as education, said Zhang Deguang, Secretary-General of the forum.

Electric Car Brand

Beijing Automotive Industry Holdings Co. Ltd. (BAIC), a major carmaker of the country, launched a new energy company in Beijing on November 14 to produce pure electric and hybrid cars.

The affiliated Beijing New Energy Automotive Co. Ltd. is responsible for research and development, manufacturing and sales of key auto parts, electric cars, hybrid cars and charging systems, according to BAIC.

The company is expected to have an annual output of 20,000 to 40,000 new energy vehicles in 2011 with its own brand "Beijing."

BAIC is expected to have an annual sales revenue of 15 billion yuan ($2.19 billion) from the new energy cars in 2015, accounting for 5 to 10 percent of its total sales revenue.

Pricing Freedom

China has introduced a new pricing mechanism of fuel surcharge that was linked with airline jet fuel costs, said the National Development and Reform Commission, the top economic planner.

Under the new mechanism, which took effect on November 14, airlines could decide for themselves how much to charge only when jet fuel comprehensive purchasing cost, which is the weighted average of domestic factory-gate prices for jet fuel and prices of imported fuel, exceeds 4,140 yuan ($606) per ton. Previously, the surcharge level was set by the government.

This was aimed to "help the airlines to cope with fluctuating fuel prices," as jet fuel costs usually account for 40 percent of the total costs of China's airline companies, said the commission.

Expanding Overseas

China's solar panel maker Suntech Power Holdings Co. Ltd. announced on November 16 that it will set up its first U.S. factory in the greater Phoenix area in Arizona.

The plant will have an initial annual production capacity of 30 megawatts and is expected to begin production in the third quarter of 2010, said the company.

"This is the first step in what I see as a long-term, strategic investment in the North American market," Shi Zhengrong, CEO of the company, said. "The leadership shown by the U.S. Government in advancing renewable energy will only improve the environment for further investments in the coming years."

Suntech, headquartered in Wuxi of Jiangsu Province, has been listed on the New York Stock Exchange since December 2005.