Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)
February 13, 2009
What is CEPA?
The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) is the first free trade agreement ever concluded by the Mainland of China and Hong Kong. The main text of CEPA was signed on 29 June 2003.
CEPA opens up huge markets for Hong Kong goods and services, greatly enhancing the already close economic cooperation and integration between the Mainland and Hong Kong.
CEPA adopts a building block approach, and the two sides have been working closely to introduce further liberalization measures continually. The agreed liberalization measures for various phases of CEPA are stipulated in the CEPA Legal Text.
CEPA is a win-win agreement, bringing new business opportunities to the Mainland, Hong Kong and all foreign investors. For Hong Kong, CEPA provides a window of opportunity for Hong Kong businesses to gain greater access to the Mainland market. CEPA also benefits the Mainland as Hong Kong serves as a perfect “springboard” for Mainland enterprises to reach out to the global market and accelerating the Mainland’s full integration with the world economy. Foreign investors are also welcome to establish businesses in Hong Kong to leverage on the CEPA benefits and join hands in tapping the vast opportunities of the Mainland market.
Implementation
CEPA covers 3 broad areas:
Trade in goods – All goods of Hong Kong origin importing into the Mainland enjoy tariff free treatment, upon applications by local manufacturers and upon the CEPA rules of origin (ROOs) being agreed and met.
Trade in services – Hong Kong service suppliers enjoy preferential treatment in entering into the Mainland market in various service areas. Professional bodies of Hong Kong and the regulatory authorities in the Mainland have also signed a number of agreements or arrangements on mutual recognition of professional qualification.
Trade and investment facilitation – Both sides agreed to enhance co-operation in various trade and investment facilitation areas to improve the overall business environment.
Source: Trade and Industry Department
The Government of the Hong Kong SAR
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Manganese in Iron & Steel Industry
February 9, 2009
Manganese is essential to iron and steel production by virtue of its sulfur-fixing, deoxidizing, and alloying properties. Steelmaking, including its ironmaking component, has accounted for most manganese demand, presently in the range of 85% to 90% of the total demand. Among a variety of other uses, manganese is a key component of low-cost stainless steel formulations and certain widely used aluminium alloys.[3]
The metal is very occasionally used in coins; the only United States coins to use manganese were the “wartime” nickel from 1942–1945, and, since 2000, dollar coins. The EU uses manganese in 1 and 2 Euro coins, due to greater and cheaper availability
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Weak Economy Cuts China’s Ansteel 2008 Net Profit 55%
January 31, 2009
China’s Angang Steel Co. Ltd. (Ansteel) said Wednesday net profit fell 55 percent last year to an estimated 3.42 billion yuan (about US$500 million) Ansteel prices plunged.
Ansteel, one of the country’s top three steel producers, issued the estimate in an unaudited statement to the Shenzhen Stock Exchange, where it is listed.
The final figure indicates a loss of 4.83 billion yuan in the fourth quarter, as previous company data show net profits in the first three quarters totaled 8.25 billion yuan.
The decline reflected steep falls in steel prices and slow inventory movement starting in the second half, said the northeast-based company.
Steel prices in China plummeted in the second half as the deepening world economic slowdown weakened industrial growth and steel demand in the country.
The price of 6.5 mm carbon steel wire rods, a major steel product, was down more than 40 percent since June, Jia Yinsong, a Ministry of Industry and Information Technology official, told a forum earlier in January. Market data show the product was sold at about 3,400 yuan per ton.
The company also attributed the weak performance to the costs of buying raw materials and fuel at high prices earlier in 2008.
World crude oil prices are down more than 70 percent since peaking at 147 U.S. dollars per barrel in July. Earnings per share were estimated at 0.47 yuan in 2008, down 58 percent from in 2007, Ansteel said.
The company didn’t give a date for the release of its audited results, which under Chinese rules must be done within six months.
Source: Xinhua News Agency
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China Likely to Launch Steel Product
January 30, 2009
China is likely to launch steel products futures trading this March on the Shanghai Futures Exchange, with linear steel and threaded steel to be the first futures varieties, according to an insider.
The introduction of steels futures will help enterprises prevent price risks through hedging and is helpful to restructuring of the domestic steel industry.
Also, it will help change China’s passive status in international iron ore negotiations. China may gradually gain some pricing power on the international steel market.
The source also said futures products of major building materials such as linear steel and threaded steel surely would come out earlier than rice futures.
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The Steel Revitalization Plans in China
January 29, 2009
It is reported that the State Council has worked out the steel revitalization plans, which focus on controlling the whole volume, washing out the obsolete capacity and encouraging technical innovation and merger & acquisition to bail out the slumping domestic steel industry.
Mr Wang Yifang Board chairman of Hebei Steel Group said even though the released plan has not cover detailed regulations, it will provides timely help for the development of the steel enterprises in Hebei province, the largest steel production base in China. To the large-sized steel mills, the plan means low cost expansion.
As one of the largest steel complexes in China, Hebei Steel Group has enhanced its place in steel industry since it was founded, and became the national major supportive enterprise.
As per local steel assistance plan, total crude steel capacity would be controlled within 80 million tons by 2020. In order to realize the goal, the province has to concentrate the quality steel resources by promoting the progress of M&As. Most experts believe that the steel revitalization policy will lay a solid floor for the further development of Hebei steel industry.
According to the plan special funds will be allocated from the central budget to encourage technological advancement of the sector, readjustment of products mix and improvements of product quality
As one of the pillar industries in Hebei province, the steel industry contributes more than 25% of the provincial total industrial profits in recent years. However, it still lacks of competitiveness since most local produced products are primary one, with few high value-added and high-tech contained products.
The local government should draw some supportive policies in line with the steel revitalization plan to encourage the technologic innovation. Only in this way, can Hebei province form high quality vanadium and titanium, construction steel and slabs production lines with high value added products, and end the extensive develop pattern in local steel industry.
Source: China Steel net.com
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