GOVT AND POLICIES

Passenger vehicle sales up 5.5%

Passenger vehicle sales in China rose 5.5 percent in July, compared with July the previous year, according to data from the China Passenger Car Association. A total of 1.7 million vehicles were sold during the month, the CPCA said. During the first seven months of the year, retail sales rose 0.6 percent to 12.5 million vehicles.

United States sets subsidy rates

The US Commerce Department on Tuesday set preliminary subsidy rates on imports of aluminum foil from China. China, for its part, urged US authorities to abide by World Trade Organization rules in its investigation of aluminum imports. The Commerce Department said in a statement that it had set preliminary subsidy rates ranging from 16.56 percent to 80.97 percent for Chinese exporters and producers of aluminum foil. Punitive duties would be imposed after both the Commerce Department and the US International Trade Commission make affirmative final rulings. The Commerce Department is scheduled to make its final determination around Oct 23, unless the statutory deadline is extended. The department launched anti-dumping and anti-subsidy investigations into imports of aluminum foil from China in March, in response to a request from the US Aluminum Association Trade Enforcement Working Group.

COMPANIES AND MARKETS

Feihe builds $234m plant in Canada

Feihe International Inc, a top manufacturer of infant formula in China, is to build a manufacturing plant for C$300 million ($234 million) in Kingston, Canada. Feihe Chairman Leng Youbin said on Tuesday in Ottawa that the company decided to set up the plant in the city, in the province of Ontario, because of certain local advantages. "We inspected many places, including some in the US and in other parts of Canada, and came to the conclusion that Kingston is very good place for production," Leng said. Xia Xiang, the economic and commercial counselor of Chinese Embassy in Ottawa, said the plant would be China's biggest investment in Canada's agri-food sector and it was also Canada's largest-ever foreign investment in the field. Xia said Canada had not made its own baby formula for more than 20 years. The Canadian Dairy Commission tried for a number of years to find a domestic processor, but no local companies were interested in expanding into formula, he said.

Tibet Airlines starts new flight

China's Tibet Airlines on Tuesday started a direct flight service in the Chengdu-Kathmandu-Chengdu sector, establishing the first ever direct flight between the two cities. The plane departed Chengdu Shuangliu International Airport at 6:16 pm local time and touched down at Tribhuvan International Airport, Kathmandu an hour later, according to a press statement issued by Himalaya Airlines, the general sales agent of Tibet Airlines. Lhasa-based Tibet Airlines has a 49 percent stake in Himalaya Airlines, a Nepal-based international airline company. According to Himalaya Airlines, the Tibet Airlines is conducting four flights a week on the route on Mondays, Tuesdays, Thursdays and Saturdays. The airline is flying the route with an Airbus 319.

Mega railway begins construction

A mega railway to be built by China was officially launched on Wednesday in the Malaysian city of Kuantan, a milestone for China-Malaysia ties as China pushed forward the Belt and Road Initiative. At a cost of 55 billion ringgit ($12.83 billion), the 688-km East Coast Rail Link will help upgrade public transportation infrastructure in the east coast, said Malaysian Prime Minister Najib Razak when inaugurating the groundbreaking ceremony of the project. The ECRL is the first artery railway built in the east coast, which has been connected to the west coast only "via a network of roads and highways, and small rail lines that were woefully inadequate." Describing the project as a game-changer for Malaysia, Najib said it will significantly cut travel time from Gombak in suburban Kuala Lumpur to Kota Baru in the northeastern state of Kelantan from seven to four hours.

Siemens to finance Iranian projects

German Siemens group will finance $3.5 billion in Iranian rail and power plant projects, Press TV reported on Tuesday. "On a trip to Germany, we had discussions about Siemens' participation in Iran's railway and power plant projects," Deputy Minister of Road and Urban Development for International Affairs, Asghar Fakhriyeh-Kashan, was quoted as saying. In the rail sector, Iran is going to buy wagons from Siemens, to use on a high-speed line between the capital Teheran and the central cities of Qom and Isfahan, Fakhriyeh-Kashan said. Siemens will also provide signaling equipment and install communication signs, he added. In addition, Siemens plans to enter into a joint venture with Iran's MAPNA Group, both in the power plant and locomotive manufacturing sector, in order to boost domestic production, he said.

AROUND THE WORLD

German exports fall in June

Germany recorded its biggest monthly drop in exports in nearly two years in June, according to figures released on Tuesday. After witnessing growth for five consecutive months, exports fell by 2.8 percent in June compared to May, according to the Federal Statistical Office. The slump exceeded economists' projections for a slight decrease and constituted the biggest fall since August 2015. Imports fell even further, by 4.5 percent during the same period, which was the worst figure since January 2009. In total, German firms sold goods worth 107.2 billion euros ($126.58 billion) in June, which still marked a slight increase of 0.7 percent year-on-year. Trade with other Eurozone countries grew by 2.7 percent, further underlining the bloc's strengthening economic recovery. Exports to countries outside the European Union, such as the United States and China, fell by 1.7 percent.

Egypt's growth tops expectations

Egypt's economic growth rate in fiscal year 2016/17 beat government expectations, reaching 4.1 percent, while the budget deficit was 10.9 percent of GDP compared with 12.5 percent the previous year. Planning Minister Hala al-Said said the economic growth rate reached 4.9 percent in the last quarter of the fiscal year, which ended in late June. That brought the annual economic growth rate to 4.1 percent. The minister added that the GDP growth rate increased for the first time since 2007, in addition to an increase in commodity exports by 10 percent and a decrease of imports by 14 percent. The trade deficit dropped by 26 percent, and the unemployment rates declined during the third quarter of the fiscal year from 12.7 to 12 percent. That reflected an increase in employment opportunities, as a result of national projects being implemented across the country, al-Said said.

UAE pushes for e-car use

The United Arab Emirates launched a club to support the use of new energy cars, state news agency WAM reported on Tuesday. Under the umbrella of the Clean Energy Business Council, the New Energy Vehicles Club is a charging station manufacturer, WAM said. The club aims to serve as an example for the electric vehicle and clean energy industry and support the development of the electric vehicle market. Founding members of the club include international and local companies in the electric vehicle sector. The club will start in the UAE, but have a goal to expand activities across the Middle East and North Africa. "With growing demands on transportation across the MENA region, electric vehicles are arguably the future of sustainable mobility," said Stephane le Gentil, chief executive officer of the CEBC.

Vietnam's tourism among cheapest

Vietnam has been ranked among the world's most affordable destinations by news site Business Insider. The site recently named Vietnam a "stunning" tourist attraction that can be experienced on $20 a day or less. Eats are widely available for just $1-$2 while hostels start at around $3 per night. Other countries, including Thailand, Indonesia and China, also appeared on the list of budget travel places.

Myanmar permits 26 more enterprises

Myanmar has permitted 26 more investment enterprises, creating some 940 job opportunities recently, official media reported on Wednesday. The 26 enterprises include seven local enterprises and 19 foreign-owned enterprises in sectors of industry, livestock breeding, construction, transport and communication, hotel, tourism and electricity generation. In 2017-18 period, over $3.67 billion of investments of 112 foreign enterprises had entered the country, including that in Thilawa Special Economic Zone. Also, Myanmar Investment Commission has permitted 40 domestic enterprises in the same fiscal year 2017-18.