SHUT DOWN

China has ordered more than 2,000 companies in 18 industries to shut outdated manufacturing capacity by the end of September. Industries affected include cement, coking, iron, paper and dyeing. In announcing the order, the Ministry of Industry and Information Technology stated that firms failing to comply with the orders could face penalties such as having their sewage treatment licenses revoked, curbs on lending, or even having their business licenses withdrawn. The factories targeted for closure were either highly polluting, highly energy consuming, or failing to meet safety requirements.

CHEAPER SOLAR

Officials from China's National Energy Administration said the country's solar-power tariffs may fall to between 0.6 yuan ($0.09) and 0.8 yuan ($0.12) per kwh by 2020, as China expands its capacity to generate electricity from sunlight to 20 gigawatts, a four-fold increase from predicted 2015 levels. According to Anil Srivastava, executive president for renewable energy at Areva SA, a France-based global player in energy transmission and distribution, solar projects in China are approaching "grid parity," meaning clean energy costs are similar to those for fossil fuels.

IRON ORE IMPORTS

China may soon reduce the number of qualified importers of iron ore by creating new rules for the steel industry, paving the way for mills to improve their price bargaining power. The China Iron and Steel Association, representing China's largest mills, said the new rules would include standards on capital requirements, energy consumption and the environment. The restrictions, if imposed, could lead to the continued decline in iron ore imports.

GOLDEN CHANCE

China's central bank, the People's Bank of China (PBOC), said in a recent statement that it will allow more commercial banks to import and export gold and encourage them to offer renminbi-denominated gold derivatives. The PBOC also vowed to assist in opening the gold market to greater foreign participation. The central bank required lenders to provide improved services for domestic gold firms looking to raise funds to establish overseas offices. According to the PBOC, China will tailor policies to the market, including foreign exchange policies, and is considering permitting foreign suppliers to provide gold bullion directly to the Shanghai Gold Exchange to speed up development of the market.

AFRICAN REBOUND

The newly announced 2010 African Economic Outlook (AEO) says Africa is recovering strongly from the global crisis, after having seen its average GDP growth reducing from about 6 percent during 2006-08 to a mere 2.5 percent in 2009. Growth is expected to rebound to 4.5 percent in 2010 and 5.2 percent in 2011, says the AEO.

INVESTOR INFORMATION

The United Nations Industrial Development Organization and the Federation of African Investment Promotion Agencies are set to launch a plan to improve the investment environment in Africa. The plan includes building an information database by conducting a survey among more than 800 enterprises. The results of the survey will be presented to African heads of state at the next African Union Summit, and help more than 20 Sub-Saharan African countries gain access to information on foreign investors and domestic companies.

TRADE SURPLUS TO REMAIN

Chinese analysts said the country's high trade surplus is likely to remain for the rest of 2010, as domestic demand continues to shrink in the face of government attempts to curb the property bubble. Figures from the General Administration of Customs show that exports in July were up 38.1 percent from the same period last year, bringing the trade surplus to an 18-month high at $28.7 billion, while imports grew only 22.7 percent year-on-year, a slower pace than expected. In July, exports grew to $145.5 billion and imports increased to $116.8 billion.

TEXTILE EXPORT GROWTH

The China Chamber of Commerce for Import & Export of Textiles (CCCT) forecasts the country's textile exports will increase 20 percent to $186 billion in 2010. CCCT's data show that China's textile exports experienced continuous growth and jumped to a record high of $185.2 billion in 2008. But, affected by the global economic recession, textile exports fell 9.8 percent to $167 billion last year. According to CCCT, garment exports will be weak because China's garment manufacturers are suffering from tighter margins due to appreciation of the RMB, as well as increased raw material and labor costs.

NUMBER CRUNCHING

122 million

Number of the online banking users in China by the end of June

2 million barrels

Nigeria's forecast daily oil export capacity in September

3%

Rate of the RMB appreciation in the second half of 2010, as predicted by an economist from China International Capital Corp. Ltd.

$2.3 billion

Market size of China's online gaming industry by the end of June

3.47%

Profit margin achieved by large and medium Chinese steel mills in the first half of 2010