China This Week: President Hu at APEC; Investment Promises to Wal-Mart; Anti-Inflation Measures

Hu Urges Trade Liberalisation at APEC:  Chinese President Hu Jintao urged the Asia-Pacific Economic Cooperation (APEC) economies to promote liberalization and facilitation of trade and investment.

Addressing the second session of the 18th APEC Economic Leaders' Meeting, Hu said, "APEC should continue to uphold the spirit of the Bogor Goals [of free and open trade and investment], adapt to the changing situation and actively tackle new challenges, leverage its own strengths and further improve itself."

Hu also defended the role of newly emerging markets in world economic recovery and gave assurances that China seeks to expand domestic demand growth and remains committed to reforming its exchange rate.

China, Singapore Conduct Joint Training Exercise:  China's People's Liberation Army (PLA) and the Singapore Armed Forces (SAF) launched their second joint counter-terrorism training exercise on Friday.

The COOPERATION 2010 training exercise will focus on counter-terrorism security operations for major international events. About 60 personnel from the SAF and 86 personnel from the PLA are taking part in nine days of drills.

China, South Africa Deals on Trade, Energy:  China and South Africa have signed a series of energy and trade deals  during Vice-President Xi Jinping's three-day visit. The documents covered cooperation in energy, trade statistics collection and analysis, banking surveillance, and Chinese enterprises' involvement in South Africa.

Chinese, Indian, Russian FMs Discuss International Order:  Foreign ministers from China, Russia and India have met to discuss ways to build a balanced and democratic international order in a multi-polar world.

The trilateral meeting, also known as RIC, was the 10th of its kind and focused on plans for the coordination of action by the three countries to develop an open and inclusive security framework in the Asia-Pacific region.

The trio also considered developments in Iran, Afghanistan and the Korean Peninsula.

Official Urges Yuan Supplant Reserve Currencies:  A senior central bank official called on Saturday for reducing reliance on international reserve currencies in trade settlements, citing risks posed by their instability.

"We should enhance cooperation and reduce dependence on international reserve currencies," Jin Zhongxia, deputy director-general of the international department at the People's Bank of China, said at a forum attended by Portuguese-speaking officials and business people.

The US dollar has weakened over the past three months against all 16 major market currencies, according to Bloomberg.

Jin said, without giving a target date, that China plans to boost yuan-denominated cross-border trade with other countries 10-fold to 20% of total trade, or more than 2.5 trillion yuan ($377.6 billion), Jin said.

China to Raise Reserve Ratio:  China's central bank Friday ordered banks to set aside an additional 0.5% of their deposits from 29 November, the fifth such hike this year and the second increase this month.

The People's Bank of China said the move was aimed at "enhancing liquidity management and moderately regulating credit supply." The increase was estimated to freeze liquidity of about 300 billion yuan ($44.8 billion).

Friday's move will raise the deposit reserve ratio for other large financial institutions to 18% and for small and medium-sized institutions to 16%.

China Measures to Fight Inflation:  The State Council, China's cabinet, announced Sunday a series of measures to rein in rising commodity prices.

Local governments and departments are required to boost agricultural production and stabilize supply of those products and fertilizer while reducing the cost and ensuring coal, power, oil and gas supplies, the State Council said in a seven-page circular.

China's decision-makers have made price controls a top priority, as the consumer price index (CPI), the main gauge of inflation, rose to a 25-month high of 4.4% in the 12 months to the end of October. The hike was mainly due to a 10.1% surge in food prices. Food prices have a one-third weighting in China's CPI calculation.

Surplus in Trade To Fall Again:  China's trade surplus this year will be less than the $190 billion recorded last year as the nation restructures its economy, Commerce Minister Chen Deming said.

The surplus reached $290 billion in 2008 before dropping sharply last year. 

China To Improve Investment Environment:  "The Chinese government will advance reform to create a better investment environment for foreign businesses.

Chinese Vice Premier Wang Qishan made the pledge in a meeting with Robson Walton, chairman of the world's largest retailer, Wal-Mart, in Beijing.

Wang also said the Chinese and US economies were interdependent and called for the two countries to work together more closely and refrain from politicising economic issues.

Rare Earth Exports to Japan:  China exported 16,000 tonnes of rare earth to Japan in the first nine months of the year, equivalent to 49.8% of its total rare earth exports, the Ministry of Commerce (MOC) said Tuesday.

The figure was a 167% year-on-year rise, MOC spokesman Yao Jian said at a press conference.

During the recent Chinese-Japanese disputes over the Daioyu Islands and Japan's detention of a Chinese fishing crew, there were reports that Beijing would restrict rare earth supplies to Tokyo.

Exports to the United States increased 5.5% year on year to 6200 tonnes during the same period, equivalent to 19 percent of China's total rare earth exports.

Aviation sector set for takeoff:  Government approval of plans to open part of its low-altitude airspace to the general aviation industry may unleash pent-up demand for private air services and create a market worth more than one trillion yuan ($150 billion), experts said.

A circular jointly issued on Sunday by the State Council and the Central Military Commission said China will gradually open part of its low-altitude airspace - altitudes lower than 1,000 meters - for private flights to promote the country's general aviation sector, or the use of aircraft for purposes other than those of airlines, the military and the police.

Supercomputer Opened to foreign clients: Officials say the world's fastest supercomputer, Tianhe-1A, based in North China's Tianjin municipality, will be available to international clients in the future.

Tianhe-1A, which can perform 2.57 quadrillion computing operations per second, topped the 36th edition of the world's top 500 supercomputers list, the first time a Chinese product has taken the honour.