Resource Tax Adjusted

China will implement new resource tax rates for oil and gas from November 1, 2011, according to the State Council, China's cabinet.

The sales of crude oil and natural gas nationwide will be subject to a tax of between 5 percent and 10 percent. It will also impose a tax of 0.4-60 yuan ($0.06-9.4) per ton on rare earth ores and 8-20 yuan ($1.2-3.1) a ton on coking coal.

Taxes on other types of coal remained unchanged at 0.3-5 yuan ($0.05-0.78) per ton.

China's tax rate was previously calculated based on volume of production, not sales value. Experts believe the move, billed as a way of conserving resources and limiting environmental damage, will help funnel cash to local governments but slash the earnings of resource companies.

Besides, for Chinese and foreign companies who cooperate to exploit offshore and onshore petroleum resources, they are required to pay resource tax instead of previous royalties from November 1, 2011 on.

Clenbuterol Banned

China's State Food and Drug Administration (SFDA) has banned the production, sale and use of clenbuterol tablets to avoid drug abuse and its safety risks.

Existing clenbuterol tablets will be destroyed under the supervision of local food and drug authorities.

The medicine is used to treat bronchial asthma, but is also illegally used by farmers as a fat-burning additive in pig feed to make pigs leaner.

Abuse of the drug for a lengthy period will have serious negative effects on cardiopulmonary functions, the SFDA said, citing the results of a review program.

Compound clenbuterol, as well as aerosol and powered forms of the drug, are excluded from the ban, as they are considered safe to use as prescription drugs under doctors' guidance, according to SFDA.

The administration also said bronchial asthma patients who are currently receiving the tablet form of clenbuterol can replace the drug with other medicines like salbutamol and terbutaline.

Rare Earth Protected

An operation to crack down on the illegal exploration and production of light rare earth was carried out by local governments of three regions where most of China's light rare earth metals located, according to a statement issued by China's Ministry of Land and Resources.

The move aims to "promote the protection and rational development of the country's rare earth resources and further regulate their production," said the ministry.

The three regions are Baotou in north China's Inner Mongolia Autonomous Region, Jining in east China's Shandong Province and Liangzhou in southwest China's Sichuan Province.

Rare earth metals are vital ingredients for manufacturing many sophisticated products, like cell phones, electric car batteries and missiles.

China now produces more than 90 percent of the world's rare earth metals but only has a rare earth reserve of about one-third of the world's total. 

Bank Rules Tightened

New measures to improve regulations over banks' wealth investment products, one of the most profitable business of banking industry were released by the China Banking Regulatory Commission (CBRC), the country's banking regulator, on October 9, 2011.

Commercial banks are required to improve information disclosure system to better inform clients about risks when they buy wealth investment products. They should inform clients of the investment risks and anticipated results in worst-case scenarios while carrying out necessary assessments on the client's ability to endure the risks based on their age, financial status and investment experience, CBRC said.

In recent years, while seeing rising sales of wealth investment products, Chinese commercial banks receive complaints for misleading clients and selling falsified products.

Tougher Emission Rules

To ensure cleaner air, Chinese thermal power plants are required to operate under stricter emission standards, with mercury output monitored for the first time, according to the regulation released on September 21, 2011 by China's Ministry of Environmental Protection (MEP).

The new standard will take effect on January 1, 2012. Pollutants targeted include sulfur dioxide, nitrogen oxide and soot, which are major contributors to acid rain.

Wu Xiaoqing, Vice Minister of MEP, said the new standard would help substantially cut emissions of major airborne pollutant. However, about 260 billion yuan ($40.7 billion) needs to be invested on upgrading industrial facilities to meet the standards, the ministry predicted.