HOW TO EXPORT TO CHINA

How to Export to

The People’s Republic of China

2006-3 Version

Prepared for

Ministry of Foreign Relations of Brazil

Trade Promotion Department

Trade Information Division

By

Beijing CDS Information Consulting Co., Ltd.

Suite 705, North Office Tower, Beijing New World Center, No.3B Chongwenmenwai St. Beijing, 100062 China

Tel: 86-10-67082542 Fax: 86-10-67082534 E-mail: [email protected]

Website: http://www.bjcds.com

How to Export to the People’s Republic of China

Table of Contents INTRODUCTION.........................................................................................................................５ Map of P.R. China.........................................................................................................................９ BASIC DATA.............................................................................................................................１０ BIBLIOGRAPHY .....................................................................................................................１１ I GENERAL ASPECTS.........................................................................................................１２

1 Geography........................................................................................................................１２ 2 Population, urban centers and standard of living .............................................................１５

Population ...................................................................................................................１５ Urban centers ..............................................................................................................１７ Main socio-economic indicators .................................................................................１８

3 Transportation and communications ................................................................................１９ Telecommunications ...................................................................................................２２

4 Political and administrative structure...............................................................................２２ Political Structure........................................................................................................２２ Administrative Structure .............................................................................................２５

5 International Organizations and Agreements ...................................................................２７ China and the UN........................................................................................................２７ China and the WTO.....................................................................................................２７ China and the IMF ......................................................................................................２７ China and the APEC....................................................................................................２８

II ECONOMY, CURRENCY AND FINANCE ...................................................................２９ 1 Economic outlook ............................................................................................................２９ 2 Main industries.................................................................................................................３１

Farming, Forestry, Animal Husbandry and Fishery ....................................................３１ Mining.........................................................................................................................３２ Industry .......................................................................................................................３３ Power and Petroleum Industries..................................................................................３４ Machine-building and Auto Industries........................................................................３４ Information Industry ...................................................................................................３５ New and High Technology Industry ...........................................................................３６ Tourism .......................................................................................................................３７ Construction Industry..................................................................................................３７

3 Currency and finance .......................................................................................................３８ Currency......................................................................................................................３８

4.Balance of Payments and International Reserves.............................................................３８ Public Finance.............................................................................................................４０ Banking System ..........................................................................................................４０

III FOREIGN TRADE ..........................................................................................................４２ 1 Recent evolution: .............................................................................................................４２ 2 Direction...........................................................................................................................４３

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3 Composition .....................................................................................................................４３ IV ECONOMIC RELATIONS BETWEEN BRAZIL AND CHINA ...................................４５

1 Bilateral trade: Evolution of Sino-Brazil Trade ...............................................................４５ 2 Composition of bilateral trade..........................................................................................４６

Brazil: main products exported to China 2003 – 2005................................................４６ Brazil: main products imported from China 2003 - 2005 ...........................................４７

3.Investimentos bilaterais....................................................................................................４８ Investments by China in Brazil ...................................................................................４８ Brazilian Investments in China ...................................................................................４９

4. Main economic agreements involving Brazil..................................................................５０ V MARKET ACCESS ...........................................................................................................５２

1 Tariff system.....................................................................................................................５２ 2 Import regulation..............................................................................................................５６

General regulation.......................................................................................................５６ Foreign exchange regime ............................................................................................５９

3 Documents and formal procedures...................................................................................６１ Shipment (from Brazil) ...............................................................................................６１ Customs clearance (in China) .....................................................................................６３

4 Special regimes ................................................................................................................６８ VI TRADE STRUCTURE........................................................................................................７２

1 General Considerations ....................................................................................................７２ 2 Distribution channels .......................................................................................................７２

Domestic wholesalers..................................................................................................７２ Foreign agent and distributors.....................................................................................７３ Wholesale markets ......................................................................................................７３ Retail channels ............................................................................................................７４ Trading via Hong Kong...............................................................................................７７ Government procurement............................................................................................７７

3 Sale promotion .................................................................................................................７８ General considerations ................................................................................................７８ Fairs and exhibits ........................................................................................................７８ Advertising media .......................................................................................................７９ Consulting services in marketing ................................................................................８０

4 Trade practices .................................................................................................................８１ Appointing an agent ....................................................................................................８１ Establishing a retail business in China........................................................................８２ Opening a commercial representation office...............................................................８２ Disputes and commercial arbitration...........................................................................８４

VII RECOMMENDATIONS TO BRAZILIAN COMPANIES ............................................８７ 1 Advice on China Import Procedures ................................................................................８７ 2 Advice on Business Trips .................................................................................................８７

Establishing personal relationships .............................................................................９４ Comprehending the necessity of working lunches and dinners ..................................９５ Figuring out the management structure of the Chinese organization..........................９５

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Bring small gifts..........................................................................................................９５ Bring name cards.........................................................................................................９５ Learn some greetings in Mandarin..............................................................................９６ Paying attention to the small details when you see your Chinese counterparts for the first time .............................................................................................................................９６ Understanding the Chinese way of thinking ...............................................................９６ The concept of face .....................................................................................................９７

ANNEXES .................................................................................................................................９８ I ADDRESSES....................................................................................................................９８

1. Official agencies...................................................................................................９８ 2. Brazilian companies ............................................................................................１０３ 3. Chambers of commerce.......................................................................................１１６ 4. Main local class entities ......................................................................................１１６ 5. Main banks..........................................................................................................１１８ 6 Main fairs and exhibits.........................................................................................１２０ 7. Communications .................................................................................................１２５ 8. Consulting services in marketing ........................................................................１３０ 9. Obtaining required documents ............................................................................１３１ 10. Transportation companies to/from Brazil..........................................................１３２ 11. Shipment inspection ..........................................................................................１３４

II. TRANSPORTATION AND COMMUNICATIONS WITH BRAZIL........................１３４ 1. Information on transportation..............................................................................１３４ 2. Communications: rates (China)...........................................................................１３４

III. PRACTICAL INFORMATION ................................................................................１３５ 1. Currency..............................................................................................................１３５ 2. Main weights and measures. ...............................................................................１３５ 3. Main national holidays........................................................................................１３５ 4. Time zones ..........................................................................................................１３６ 5. Business hours.....................................................................................................１３６ 6. Electric current:...................................................................................................１３６ 7. Desirable periods for trips ...................................................................................１３６ 8. Entry visa ............................................................................................................１３７ 9. Vaccines...............................................................................................................１３７ 10. Hotels ................................................................................................................１３７

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INTRODUCTION The People’s Republic of China is the third largest country in the world in terms of land area, occupying a territory of approximately 3.7 million square miles. China is also the world’s largest nation by population, with approximately 1,307.56 million people at the end of 2005. The People’s Republic of China was founded on October 1, 1949. Since its founding, China has transformed itself from a largely agrarian, semi-feudal and semi-colonial society that existed prior to 1949, to a centralized economic and social system and, since 1978, to a more open and market-oriented socialist economy. The People’s Republic of China, the biggest developing country with the largest population and the third largest territory, has enjoyed a rapid and sustained growth in its economy for the past 20 years. China's GDP rose from RMB 7.4 trillion yuan (0.89 trillion US dollars) in 1997 to 18.23 trillion yuan (2.23 trillion US dollars) in 2005, with an average annual rate of 9% In December 2005, China raised the GDP in 2004 to RMB 15.99 trillion yuan (1.93 trillion US dollars) from 13.65 trillion (1.64 trillion US dollars) based on the results of the country's first nationwide economic census in 2005. The revision lifts China above Italy as the sixth-biggest economy in the world in 2004, just behind the United States, Japan, Germany, France and the United Kingdom. National tax revenue grew by a large margin every year. Total fiscal revenue rose from RMB 0.8651 trillion yuan (0.10 trillion US dollars) in 1997 to 3.1628 trillion yuan (0.3860 trillion US dollars) in 2005. China's foreign exchange reserves climbed from 139.9 billion US dollars in 1997 to 818.87 billion US dollars in 2005. China's foreign trade has taken several big steps forward, and grew by an annual rate of 15 percent since 1978. In 2005, the combined volume of imports and exports increased to 1421.90 billion US dollars, and China become the third largest trader with foreign trade. China’s export volume hit 761.95 billion US dollars. In the same year, China’s import volume reached 659.95 billion US dollars.

The amount of foreign direct investment actually used in China in 2005 came to 60.33 billion US dollars.

China has succeeded in improving the people's standard of living and in establishing on the whole a relatively affluent society. The per capita annually disposable income of urban dwellers went up from RMB 5,160 yuan (622.44 US dollars) in 1997 to 10493 yuan (1280.9 US dollars) in 2005, an average annual increase of 8.1 percent in real terms. The balance of savings deposits of urban and rural residents rose from

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RMB 4.6 trillion yuan (0.55 trillion US dollars) in 1997 to 14.11 trillion yuan (1.72 trillion US dollars) in 2005.

China became a full member of the World Trade Organization (WTO) in December 2001. It is in conducive to both China and the world. China’s entry into WTO, not only can enable China to integrate into the process of globalization of world economy, but also facilitate the products, services, capital and technology to enter into the Chinese market. In the foreseeable future, China’s economy will be more dynamic and it’s market will be more open to the world. Brazil and China are the largest developing countries in Latin America and Asia, respectively. As far apart as two countries can possibly be on this planet, in terms of either geography or history, there are several significant social and cultural differences between Brazil and China. And yet they hold some important similarities.

The first, visible similarity is the sheer size of the national territories, both absolutely and relatively to other countries in Asia and Latin America. Secondly, Brazil and China share some problems which are commonly faced by large, developing countries, specially where predominantly rural economies gave place to more sophisticated, complex ones in a time frame not larger than a single generation. In both countries, this process happened through swift changes in their respective industrial sectors. Furthermore, development has not been uniform in these huge territories, generating economic integration difficulties as well as wealth distribution problems. Large tracts of land remain to be explored in both Brazil’s northern regions and China’s west, thus constituting new frontiers where significant opportunities are to be sought.

Brazil and China have an excellent relationship. Bilateral dialogue is good, common positions are usually shared in international organizations, and there is an important constituency for further bilateral interaction, materialized in a lengthy, complex agenda of common interests. In this sense, Brazil and China are not only friends, but also strategic partners. The potential for further development of this relationship is huge, and cooperation has not yet reached the level of intensity aimed by both societies, either in economic, political or cultural issues. Started in 2002, the process of reducing taxes on export operations continued and was implemented parallel to Brazilian government’s strategy of prioritizing trade with non-traditional markets, for example China. China, since its admission to the World Trade Organization (WTO) has consolidated its position as Brazil’s major trading partner in Asia, surpassing such more trading markets as Japan. According to the data from SECEX/DECEX MDIC, the total trade flow between the two countries grew from 3.2 billion dollars in 2001 to the record of 12 billion dollars in 2005, a growth of 275 % in five years. According to MDIC, total trade volume between Brazil and China in 2005 reached US$ 12.11 billion, up 33.19 percent. And Brazil has a favorable balance of US$1.48

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billion, up 14.45 percent. Brazilian exports to China in 2005 reached US$6.833 billion, up 25.63 percent, and China was the 3rd largest export destination of Brazil. Brazilian imports from China in 2005 reached US$5.353 billion, up 44.28 percent, and China was the 4th largest import origin of Brazil. China mainly exports to Brazil such goods as electromechanical equipment, hi-tech products, clothes, coke, textiles, automatic data-processing equipment and accessories. China mainly imports from Brazil such goods as bean products, iron ore, electromechanical equipment, paper pulp, car spare parts, leather, hi-tech products, planes, steel products, plastics and timber. By the end of 2004, China has founded 70 firms in Brazil, and Brazil has invested in more than 300 projects in China. The Chinese companies and enterprises are mainly engaged in electrical household appliances, microscope assembling, lumber processing, transport, health and catering. The Brazilian projects include water conservancy engineering, railway project and catering. A number of Brazilian companies have opened their offices in China. 2004 was the 30 anniversary of establishing diplomatic ties between Brazil and China. In May 2004 the Brazilian President Luiz Inácio Lula da Silva paid a state visit to China, and more than 400 Brazilian entrepreneurs accompaning his visit. During the visit, some 15 cooperative contracts were signed, which involve cooperation in fields like steel, coal and motor. In May 2004, Brazil's petroleum giant Petrobras set up a representative office in Beijing. Petrobras, as Brazil's biggest state-owned enterprise, plays an important role in Brazil-China economic and trade ties, and there is huge potential in energy co-operation between the two countries. In 2004, Brazil Star Alliance member Varig and Air China signed an agreement. They jointly opened a route of Rio de Janeiro/Sâo Paulo/Munich/Beijing, the only direct route connecting between the two countries. In 2006 Varig Brazilian Airlines, Brazil's largest carrier, launched code-share flights with Air China between the two countries. Air China will fly from Beijing and Shanghai to Frankfurt, while Varig will take passengers on from Frankfurt to Rio de Janeiro and Sao Paulo. The total journey time will be shortened to 27 hours, including transfers. Passengers do not need a transit visa. Previously, passengers traveling from China to Brazil had to travel for at least 30 hours.

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In November 2004, Chinese President Hu Jintao visited Brazil. China and Brazil signed a memo in Brasilia, in which Brazil said it recognized China's full market economy status. The memo was a major result of Chinese President Hu Jintao's visit to Brazil. The recognition of China's full market economy status enriched the contents of China-Brazil strategic partnership relations, and will strongly expand the opportunities of trade and investment.

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Map of P.R. China

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BASIC DATA Area: 9,600,000 km2

Population in 2005: 1307.56 million Population density: 136 /km2

Economically Active population in 2005: 758.25 million Capital: Beijing Currency: Renminbi (RMB) yuan Average exchange rate in 2005: US$1.00 = RMB8.1917 GDP (current prices) in 2005: 18.23 trillion yuan (US$2.23 trillion) Share of GDP in 2005: Primary Industry: 12.5% Secondary Industry: 47.3%

Tertiary Industry: 40.2% GDP – real growth rate: 2005= 9.9 %

2004 = 10.1 % 2003 = 10.0 % Per capita GDP in 2005: US$ 1,707 (RMB13,985 yuan) Output of main products in 2005:

Grain: 484.02 million tons Cotton: 5.71 million tons Oil Bearing Crops: 30.77 million tons Meat: 77.43 million tons Coal: 2.19 billion tons

Crude Petroleum Oil: 180.84 million tons Electricity: 2474.7 billion kwh Crude Steel: 352.39 million tons Motor Vehicles: 5.705 million units

Foreign trade in 2005: Imports: US$659.95 billion (CIF) Exports: US$761.95 billion (FOB) Brazil’s trade with China in 2005 (data from MDIC/SECEX): Exports to China: US$2.52 billion (CIF) Imports from China : US$1.55 billion (FOB)

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BIBLIOGRAPHY Atlas of the People’s Republic of China China Cartographic Publishing House China Statistical Yearbook 2005China Statistics Press Encyclopedia of New China Foreign Language Press China Business China Intercontinental Communication Center China Statistical Abstract 2006 China Statistics Press China Customs Statistical Year Book Customs General Administration of China Fairs and Exhibitions China China Council for the Promotion of International Trade China Government Organization Chart China Daily China Business Guide China Council for the Promotion of International Trade Investment in China Ministry of Commerce International Financial Statistics IMF Report on China’s National Economic and Social Development China Planning Press Note: The national data in the report do not include that of Hong Kong Special Administration Region, Macao Special Administration Region, and Taiwan Province except for divisions of administrative areas, and territory.

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I GENERAL ASPECTS 1 Geography China is located in the northern part of the East Hemisphere of the earth, the southeastern part of Eurasia, and the eastern and central part of Asia. It is at the west coast of the Pacific Ocean. Chinas land border line totals more than 20,000 kilometers, which are shared with 15 countries. North: Russia and Mongolia Northeast: the Democratic People’s Republic of Korea Southwest: Kazakhstan, Tadzhikistan, Kirghizia, Afghanistan, Pakistan, India, Nepal, Sikkim, Bhutan and Myanmar South: Viet Nam and Laos Japan, the Republic of Korea, the Philippines, Brunei, Malaysia and Indonesia in the east face China across sea.

Distances From Capital Beijing to Other Main Chinese Cities (km)

Name of City Railway Highway Airway

Changchun 1,100 1,030 828

Changsha 1,650 1,640 1,364

Chengdu 2,400 2,097 1,542

Chongqing 2,400 2,087 1,492

Dalian 903 900 443

Fuzhou 2,344 2,183 1,586

Guangzhou 2,400 2,480 1,908

Guiyang 2,600 2,458 1,784

Haikou 2,310

Hangzhou 1,520 1,490 1,135

Harbin 1,392 1,256 1,034

Hefei 1,106 1,100 959

Hohhot 594 540 432

Jinan 457 420 412

Kunming 3,510 3,108 2,118

Lanzhou 2,000 1,780 1,203

Lhasa 3,890 2,557

Nanchang 1,609 1,574 1,270

Nanjing 1,141 1,099 926

Nanning 2,650 2,660 2,074

Ningbo 1,710 1,423

Qingdao 832 666 511

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Shanghai 1,490 1,394 1,079

Shenyang 780 698 610

Shenzhen 2,600 2,567 1,967

Shijiazhuang 295 270 346

Taiyuan 622 500 431

Tianjin 137 120 180

Urumqi 3,768 3,820 2,465

Wuhan 1,300 1,230 1,087

Xiamen 3,100 3,200 1,744

Xi'an 1,200 1,117 942

Xining 2,260 2,010 1,344

Yinchuan 1,300 1,277 919

Zhengzhou 722 720 646

Source: Atlas of the People’s Republic of China

Flight time from Provincial Capitals to Beijing

China Provincial Capital Flight Time to Beijing, the Capital (Hour) Changsha (Hunan) 02:25 Chengdu (Sichuan) 02:20 Chongqing (Municipality) 02:05 Dalian (Liaoning) 01:20 Fuzhou (Fujian) 02:20 Guangzhou (Guangdong) 02:50 Haikou (Hainan) 03:25 Hangzhou (Zhejiang) 01:50 Harbin (Heilongjiang) 01:45 Hefei (Anhui) 01:45 Hohhot (Inner Mongolia) 01:10 Jinan (Shandong) 00:55 Kunming (Yunnan) 03:00 Lhasa (Tibet) No direct flight Nanjing (Jiangsu) 01:40 Shanghai (Municipality) 02:00 Tianjin (Municipality) Less than 01:00 Urumqi (Xinjiang) 03:30 Wuhan (Hubei) 01:45 Xi’an (Shaanxi) 01:40

Source: website of the Air China

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Climate Most part of China lies in the north temperature zone, characterized by a warm climate and distinctive seasons, a climate well suited for habitation. Most of China has a continental monsoon climate. From September to April the following year, the dry and cold winter monsoon blow from Siberia and the Mongolian Plateau, resulting in cold and dry winters and great differences in the temperatures of north and south China. From April to September, warm and humid summer monsoons blow from the seas in the east and south, resulting in overall high temperatures and plentiful rainfall, and little differences in the temperatures of north and south China. January is the coldest month in most parts of the country, the average temperature is below 0 degree; while July is the hottest, the average temperature is between 20-28 degrees. In terms of temperature, the nation can be sectored from south to north into equatorial, tropical, subtropical, warm-temperate, temperate, and cold-temperate zones.

Average Temperature of Main Cities in 2004

Unit: ℃

Name of City Jan. July. Annual Average

Beijing -2.3 26.0 13.5

Changchun -13.2 22.5 7.1

Changsha 5.1 29.4 18.3

Chengdu 6.0 25.0 16.2

Chongqing 8.5 28.5 18.4

Dalian -3.1 24.1 12.2

Fuzhou 11.0 29.5 20.8

Guangzhou 13.4 28.7 22.8

Guilin 7.9 26.7 19.6

Guiyang 3.1 22.2 14.6

Haikou 18.4 29.1 24.7

Hangzhou 4.7 30.2 17.8

Harbin -16 22.8 5.8

Hefei 2.9 28.9 16.6Hohhot -10.2 22.8 8.0

Jinan -0.1 26.4 14.8Kunming 9.2 20.4 15.6

Lanzhou -3.6 23.0 10.9Lhasa -0.9 14.4 8.6

Nanchang 5.7 29.7 18.8Nanjing 3.3 29.3 16.9

Nanning 13.3 27.1 21.5Qingdao 0.2 24.8 13.6

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Shanghai 4.1 29.8 17.5

Shenyang -9.4 24.3 9.6

Shijiazhuang -0.5 26.3 14.3

Taiyuan -4.7 23.5 10.9

Tianjin -3.1 26.0 13.2

Urumqi -12.6 24.6 8.0

Wuhan 4.5 29.9 18.3

Xi'an 1.6 27.8 15.4

Xining -8.4 16.5 5.8

Yinchuan -7.0 24.0 10.3

Zhengzhou 1.5 27.0 15.5Source: China Statistical Yearbook 2005

Precipitation gradually declines from the southeastern to the northwestern inland area, and the average annual precipitation varies greatly from place to place. In southeastern coastal areas, it reaches over 1,500 mm, while in northwestern areas, it drops to below 200 mm. 2 Population, urban centers and standard of living Population

China is the most populous country in the world, with 1307.56 million people at the end of 2005, one fifth of the world’s total. Moreover, the population density is high, with 135 people per km2. This population, however, is unevenly distributed. Along the densely populated east coast there are more than 400 people per km2; in the central areas, over 200; and in the sparsely populated plateaus in the west there are less than 10 people per km2. Shanghai is the most densely populated city in China, with more that 2800 people per km2 , and Tibet is the most sparsely populated area, with only 2 people per km2 .

In China’s Tenth Five-Year Plan period (2001-2005) the average annual natural increase rate of population will not exceed nine per thousand, and the population of 2005 will be controlled to less than 1.33 billion. By 2010 the population of China will not have exceeded 1.4 billion.

Population Density of Provinces, Autonomous Regions, and Municipalities (at the end of 2005)

Province Population (1000 persons) Area (1000 km2) Density (persons/ km2)

Anhui 61,200 139.00 440

Beijing 15,380 16.80 915

Chongqing 27,980 82.00 341

Fujian 35,350 121.40 291

Gansu 25,940 450.00 58

Guangdong 91,940 178.00 516

Guangxi 46,600 236.00 197

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Guizhou 37,300 176.00 212

Hainan 8,280 35.40 234

Hebei 68,510 188.00 364

Heilongjiang 38,200 454.00 84

Henan 93,800 167.00 562

Hubei 57,100 185.90 307

Hunan 63,260 210.00 301

Inner Mongolia 23,860 1,180.00 20

Jiangsu 74,750 102.60 729

Jiangxi 43,110 166.90 258

Jilin 27,160 187.40 145

Liaoning 42,210 145.90 289

Ningxia 5,960 66.40 90

Qinghai 5,430 720.00 8

Shaanxi 37,200 205.00 181

Shandong 92,480 157.00 589

Shanghai 17,780 6.34 2804

Shanxi 33,550 156.00 215

Sichuan 82,120 485.00 169

Tianjin 10,430 11.30 923

Tibet 2,770 1,220.00 2

Xinjiang 20,100 1,600.00 13

Yunnan 44,500 394.00 113

Zhejiang 48,980 101.80 481Note: The military personnel were included in the national total population, but excluded in the regional total. Source: China Statistical Abstract 2006

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Population by Gender (at the end of 2005)

Population (1000 persons) Proportion %

Total 1,307,560 100.00

Male 673,750 51.50

Female 633,810 48.50

Source: China Statistical Abstract 2006 At the end of 2005, one in five people in China was under 14 year – old , and 7.7 percent of people was aged 60 or over. The working population took 72 percent of total.

Population by Main Age Group (at the end of 2005)

Population(1000 persons) Proportion %

Total 1,307,560 100.00

0-14 265,435 20.3

15-64 941,443 72.0

65 and over 100,682 7.7

Source: China Statistical Abstract 2006 Urban centers By the end of 2005, China mainland had 31 provincial capital cities, 283 cities at prefecture level, and 374 cities at county level. China’s urban population took 43 percent of total, and rural population took 57 percent of total.

Number of Inhabitants of China’s Provincial Capitals and Centrally Administered Municipalities in 2004

Name of City Population1000 persons

Beijing 11,630

Changchun 7,240Changsha 6,100

Chengdu 10,600Chongqing 31,440

Fuzhou 6,090Guangzhou 7,380

Guiyang 3,480Haikou 1,430

Hangzhou 6,520Harbin 9,700

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Hefei 4,450

Hohhot 2,150

Jinan 5,900

Kunming 5,030

Lanzhou 3,080

Lhasa n.a. Nanchang 4,610

Nanjing 5,840

Nanning 6,490

Shanghai 13,520

Shenyang 6,940

Shijiazhuang 9,180

Taiyuan 3,320

Tianjin 9,330

Urumqi 1,860

Wuhan 7,860

Xi'an 7,250

Xining 2,070

Yinchuan 1,380

Zhengzhou 6,710Source: China Statistical Yearbook 2005

Main socio-economic indicators

Indicators Urban

Households Rural

Households

Amount of Hi-Fi stereo, per 100 Households 28.8 Amount of TV sets, per 100 Households 134.8 105.7Amount of cameras, per 100 Households 46.9 Amount of air conditioners, per 100 Households 80.7 6.4Amount of refrigerators, per 100 Households 90.7 20.1Amount of mobile telephones, per 100 Households 137.0 50.2Amount of motorcycles, per 100 Households 25.0 41.0Amount of computers, per 100 Households 41.5 2.1

Amount of automobiles, per 100 Households 3.4 Source: China Statistical Abstract 2006

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Literacy Rate (at the end of 2005)

Education level % of total population Illiterate Primary School 31.2

Junior Middle School 35.8

Senior Middle School 11.5

College and above 5.2Source: China Statistical Abstract 2006

3 Transportation and communications Road Transport Highway transport plays a significant role in China’s transport sector, especially in passenger transport. Now 98 percent of towns and 90 percent of villages all over China have access to roads. By the end of 2005, the mileage of China’s highway open to traffic reached 1.93 million kilometers, with expressways 41000 kilometers. In 2005, the highway handling capacity of passengers reached 16.97 billion people, and the passenger-kilometers reached 929.2 billion, accounting for 53.2 percent of the total passenger-kilometers transported that year. The cargo handling capacity amounted to 13.42 billion tons, and the freight ton-kilometers reached 869.3 billion, accounting for 10.8 percent of the total freight ton-kilometers that year.

Length of Highway and Vehicle Fleet (at the end of 2005)

Item Number Length of Highways (1000 kms) 1,930.5

Length of Expressway (1000 kms) 41.0 Total Number of Civil Motor Vehicles (1000 units) 31,596.6 Number of Passenger Vehicles (1000 units) 21,324.6 Number of Trucks (1000 units) 9,555.5

Total Number of Private-owned Vehicles (1000 units) 18,518.7 Number of Private-owned Passenger Vehicles (1000 units) 13,839.3 Number of Private-owned Trucks (1000 units) 4,521.1

Source: China Statistical Abstract 2006 Railway Transport Railways have always played a leading role in China’s comprehensive transportation system. By the end of 2005, China had 75,400-kilometer-long railway lines. By the end of 2005, more than

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18,600 kilometers of electric railway had been constructed in China, ranking the third in the world behind Russia and Germany, in terms of the total mileage of electric railway. In 2005, 1.16 billion passengers traveled by train, and the passenger-kilometers reached 606.2 billion, accounting for 34.7 percent of that year’s total passenger-km. The cargo transport volume reached 2.69 billion tons, and the freight ton-kilometers reached 2072.6 billion ton-km, accounting for 25.8 percent of that year’s total freight ton-km transported. At present, China is speeding up construction and upgrading of trunk lines, with emphasis placed on the central and western region. Special efforts will be made to solve the problem of insufficient transport capacity in northeastern China, and further improve the modernization level of equipment on trunk lines.

Railway Extension and Rolling Stock in 2005

Item Number

Length of Railways in Operation (km) 75,400

Length of Electrified Railways (km) 18,600

Length of Double-tracking Lines (km) 23,841

Number of Railway Locomotives 16,547

Number of Passenger Coaches 39,766

Number of Freight Cars 520,101Source: China Statistical Abstract 2006

Inland Waterway Transport Inland water transport holds an extremely important position in China’s cargo transports. Waterway transport is concentrated in coastal areas in eastern China and in south China. In China, the length of navigable inland waterway reached 123,300 kilometers by the end of 2005. The inland waterway cargo transport volume reached 2.19 billion tons, and freight ton-kilometers reached 4967.2 billion tons, accounting for 61.8 percent of that year’s total freight ton-km transported Shipping (Ocean Transport) China is situated in the west coast of the Pacific Ocean, facing a vast ocean in the East and South. China is situated in the middle of north latitude with a warm climate, and most of its ports are ice-free all the year round. Therefore, China has very favorable natural conditions to develop ocean transport. China has more than 60 ports along the coasts. The number of the berths for working at the end of 2004 reached2,849, and 687 deep water berths among them are able to accommodate 10,000 ton boats. The chief ports with an annual handling capacity of over 50 million tons are Shanghai, Ningbo, Guangzhou, Qinhuangdao, Tianjin, Dalian, Qingdao, Rizhao and Yingkou.

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China’s chief ports along the coasts are usually linked with the hinterland through high grade roads or trunk railways, forming basically an international container system consisting of ocean transport, port loading and unloading, and inland transport (water, road and railway). So far, China has opened navigation with 1,100 ports in 150 countries in the world. Beginning from 1989, China has been successively elected Class A Council Country in the International Maritime Organization. In May 1979, Marine Transport Agreement between Brazil and China (Convênio de Transporte Marítimo ) was signed.

Volume of Freight Handled in top Chinese Ports (at the end of 2005)

Rank Name of Port Volume of Freight Handled (million tons)

1 Shanghai 44,317

2 Ningbo 26,881

3 Guangzhou 25,036

4 Tianjin 24,069

5 Qingdao 18,678

6 Dalian 17,085

7 Qinhuangdao 16,900

Source: China Statistical Abstract 2006 Air Transportation China’s civil aviation has developed rapidly. At the end of 2005, China had 135 airports with scheduled flights, 1,257 regular air routes (including 233 international air routes), with a total length of 1.99 million kilometers, and 132 cities with access to air service. China’s international air routes reached more than 60 cities in 34 countries. In 2005, Chinese airports handled 138.27 million passengers, and the passenger-km reached 204.5 billion, taking 11.71 percent of total. The cargo transport volume reached 3.07 million tons, and the freight ton-kilometers reached 7.89 billion. Among Chinese airports, the Capital Airport in Beijing, the Baiyun Airport in Guangzhou, and the Hongqiao Airport in Shanghai accounted for 34.87 percent of the total passenger handling capacity, and 47.05 percent of total cargo handling capacity. In 2006, Varig Brazilian Airlines, Brazil's largest carrier, launched code-share flights with Air China between the two countries. Air China will fly from Beijing and Shanghai to Frankfurt, while Varig will take passengers on from Frankfurt to Rio de Janeiro and Sao Paulo.

Capacity of China’s Major Airports (at the end of 2004)

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Name of Airport

Passenger Handled

(person/time) Cargo Handled (ton)

Beijing Capital International Airport 34,883,190 668,690.3

Guangzhou Baiyun International Airport 20,326,138 506,988.3

Shanghai Hongqiao International Airport 14,889,198 294,020.1

Source: website of the CARNOC Telecommunications China has established a telecommunications network linking various parts of the country and connected with foreign countries, including Brazil. Moreover, a facsimile telecommunication network has also been established across the country and connected with most countries all over the world. From 2000, all Chinese towns and cities were connected with DDD and IDD. I.e. people can access IDD direct communication to Brazil at all Chinese towns and cities. In 2005, the capacity of long-distance telephone exchanges reached 13.38 million circuits, and the capacity of local office telephone exchanges reached 469.54 million lines. In 2005, China’s mobile telephone subscribers reached 393.43 million, taking the first place in the world. There were 57.3 telephones (include mobile phone) and 30.3 mobile phones per 100 population in China. In 2005, China’s internet users reached 111 million, taking the second place in the world, just behind the United States. In 2005, China has 65917 post offices with 6.97 million kilometers of mail-delivering routes. International postal services in China has also achieved rapid development, China has run direct postal services to 185 countries, including Brazil. 4 Political and administrative structure Political Structure State institutions The People’s Republic of China is a socialist country under the leadership of the Communist Party of China. According to the Constitution of China, the socialist system is the basic system of China. China’s state institutions are composed of the following sections: 1. The National People’s Congress. It is Chinas supreme organ of state power. It regularly holds an annual plenary session, and is elected for a term of five years. Delegates are elected according to their present administrative regions through the universal suffrage. The national congress has regular and temporary special committees, which are led by the permanent committee, the Standing Committee of the People’s National Congress, when the congress is not in session. 2. President of the People’s Republic of China. The present president of the People’s Republic of

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China is Hu Jintao, and the vice president is Zeng Qinghong. 3. State Council i.e. the Central People’s Government. It is the executive organ of the supreme organ of state power and the states supreme administrative organ. The State Council consists of the premier, vice-premiers, state councilors, ministers of different ministries and commissions, the auditor-general and the secretary-general. The premier is responsible for the State Council. At present, the premier of the State Council is Wen Jiabao. 4. The Chinese People’s Political Consultative Conference (CPPCC). It consists of different political parties and groups, people’s organizations and patriotic democratic personages. Its major function is to follow the principle of cooperation between the Communist Party of China and different democratic parties and personages in discussing key state political principles, and participating in government affairs. The chairman is Wu Bangguo. Laws and Jurisdiction Chinas law standard includes the states fundamental law, basic law, laws, administrative laws and regulations and local laws and regulations. Being the legislative body, the National People’s Congress (NPC) formulates the states fundamental law, basic law and laws. All the administrative laws, regulations, resolutions and orders, issued by the State Council, and local laws and regulations, issued by People’s congresses of different provinces, municipalities and autonomous regions, have the legal effect. Court and procuratorate, which are the main judicial organs in China, consist of the Supreme People’s Court, the Supreme People Procuratorate and local People’s courts and procuratorates, each independently exercising judicial authority and procuratorial power. Local court consists of the higher People’s court (at provincial level), intermediate People’s court (at prefecture level) and county (district) court; and the local procuratorate can be divided into procuratorate and sub-procuratorate at provincial, prefecture and county levels. A People’s court carries out the public judicial system and two systems of final adjudication to enable defendants to have the right to defend themselves. Main Central Government Agencies The statute for administrative reform (approved on March 10, 2003) and its subsequent alterations, made the State Council composed of 28 ministries and commissions, besides its General Affairs Office. Followings are brief introduction to the ministries and commission that deal with foreign trade. Ministry of Foreign Affairs - acts in the field of international policies, diplomatic relations, programs of international cooperation, also in charge of participating in bilateral commercial, financial and technical negotiations with foreign countries and entities.

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The National Development and Reform Commission (NDRC) - in charge of macroeconomic planning, draft and implement a strategy for the national economy and social development, long-term and annual planning, industrial policy and pricing policy. It is required to give priority to reforming its own structures, push forward the reform of the financing system and decrease the amount of administrative approval procedures so that market mechanisms will play a greater role in the economy. The State Asset Management Commission (SASAC)- works on behalf of the nation and be responsible for supervising and managing State-owned assets. The commission's functions and powers would extend to all enterprises affiliated to the central government. The commission has the power to guide and push forward the reform and restructuring of the enterprises, appoint and remove their chief officials, evaluate the enterprises' achievements, draft laws and regulations in accordance with the management of State-owned assets and give instructions to local departments in that sector. Ministry of Finance (MOF) - is in charge of financial expenditures and revenues, financial and taxation policies, administration of public internal and external debts The People's Bank of China (PBOC) - responsible for drafting and implementing monetary policy China Banking Regulatory Commission (CBRC)- responsible for supervising commercial banks State Administration of Foreign Exchange (SAFE) – responsible for foreign exchanges Ministry of Agriculture (MOA) - deals with matters related to: agricultural policy, such as production, commerce, supply, storage; technological research; agrarian reform; rural development Ministry of Commerce (MOFCOM) - is in charge of domestic and international trade and international economic cooperation. The ministry has such major responsibilities as to study and formulate policies and regulations for standardizing market operation and circulation order; promote the establishment and improvement of the market system; deepen the reform of the circulation system; monitor and analyze market operation and the situation of commodity supply and demand; coordinate anti-damping, anti-subsidy matters and investigate the harm such acts have brought to industries. General Administration for Quality Supervision, Inspection and Quarantine (AQSIQ) - the ministerial-level department is the result of the merger of the previous State Administration for Quality and Technology Supervision and the State Administration for Exit-Entry Inspection and Quarantine (AQSIQ). It is responsible for quality supervision and exit-entry quarantine. Certification and Accreditation Administration of People’s Republic of China (CNCA) - the

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only watchdog authorized by the central government to supervise certification in the market. Customs General Administration - in charge of all customs offices in the country from the central to the local levels; study and draw up the regulations and implementation rules for the collection of tariffs, organize the collection of import-export tariff and the management of other taxes, implement in accordance with law anti-damping and anti-subsidy measures; implement customs search and assume unified responsibility of combating smuggling. The Food and Drug Administration - responsible for supervision over the safety of food, health products and cosmetics. State Administration for Industry and Commerce - in charge of the registration of industrial and commercial enterprises and units and individuals engaged in business operations; approve their names; examine, approve and issue business licenses and supervise their operation; supervise and check market competition; deal with monopoly and other unjust competition cases; protect the lawful rights and interests of consumers; oversee business operators and agents, economic contracts and the registration of pledges of movable property; supervise auctions and take care. of the registration of trade marks. State Intellectual Property Office - in charge of supervision and coordinating matters related to patents and international-related intellectual properties. It also drafts laws and formulates regulations on intellectual property and supervises their enforcement. National Tourism Administration - study and draw up development strategy of the international tourism market, undertake external publicity of China's overall tourism image and major sales promotion activities, organize and provide guidance to the development of important tourism products, offer guidance to market development of offices stationed outside China; cultivate and improve the domestic tourism market, study and formulate strategies and methods for developing domestic tourism and guide their implementation. Administrative Structure China is divided into provinces, autonomous regions, municipalities directly under the Central Government, and special administrative regions. Provinces and autonomous regions are further divided into prefectures and autonomous prefectures, counties and autonomous counties, and cities. Counties and autonomous counties are further divided into townships and minority nationality townships. Municipalities and large cities are divided into districts and counties. At present, China has 23 provinces (including Taiwan), five autonomous regions, four municipalities directly under the Central Government, and two Special Administrative Regions. (see the following table).

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China's Provinces, Autonomous Regions, Centrally Administered Municipalities and Special Administrative Regions

Name Seat of Government

Anhui Province Hefei

Beijing Municipality Beijing

Chongqing Municipality Chongqing

Fujian Province Fuzhou

Gansu Province Lanzhou

Guangdong Province Guangzhou

Guangxi Zhuang Autonomous Region Nanning

Guizhou Province Guiyang

Hainan Province Haikou

Hebei Province Shijiazhuang

Heilongjiang Province Harbin

Henan Province Zhengzhou

Hong Kong Special Administrative Region Hong Kong

Hubei Province Wuhan

Hunan Province Changsha

Inner Mongolia Autonomous Region Hohhot

Jiangsu Province Nanjing

Jiangxi Province Nanchang

Jilin Province Changchun

Liaoning Province Shenyang

Macao Special Administrative Region Macao

Ningxia Hui Autonomous Region Yinchuan

Qinghai Province Xining

Shaanxi Province Xi'an

Shandong Province Jinan

Shanghai Municipality Shanghai

Shanxi Province Taiyuan

Sichuan Province Chengdu

Taiwan Province

Tianjin Municipality Tianjin

Tibet Autonomous Region Lhasa

Xinjiang Uygur Autonomous Region Urumqi

Yunnan Province Kunming

Zhejiang Province Hangzhou

Local People’s congress and People’s government is a component of Chinas state organs. According to the constitution, People’s congress and People’s government at the levels of province,

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prefecture (or city), county and township is a local organ of state power and an executive organ of power. 5 International Organizations and Agreements China and the UN China is a founding member of the UN and one of the five permanent members of the UN Security Council. China has made unremitting efforts for strengthening UN’s role, safeguarding international peace and promoting the development of the world. China maintains that countries should strengthen economic and technological exchanges and cooperation so as to change gradually the unfair and unreasonable international economic order and achieve the goal of coexistence and mutual benefits for the economic globalization; and that all civilizations and social systems in the world should coexist on a long-term basis, hold dialogues, learn from each other and develop together. China and the WTO After 15 years of arduous efforts, the protocol on China’s WTO entry was approved and adopted at the Fourth WTO Ministerial Meeting held in Doha, capital of Qatar, by representatives from142 members on November 10, 2001. On December 11, 2001 China formally became the 143rd member of the WTO. Entering the WTO is a strategic decision made by the Chinese government under the condition of economic globalization, marking the new stage of China’s opening-up.

To suit the needs of joining the WTO, China began to revise and improve laws and administrative regulations involving foreign trade and economic cooperation in 1999. Laws and regulations not in conformity with WTO regulations were revised or nullified. By the end of 2001 relevant departments of the State Council had revised 2,300 related laws and regulations and a list of 221 administrative regulations annulled by the State Council had been published. In 2001, the NPC revised the Copyright Law, Trademark Law, and Law on Joint Ventures with Chinese and Foreign Investment. Together with the Law on Chinese-Foreign Cooperative Ventures, Law on Foreign-funded Enterprises and Patent Law revised in 2000, China had revised six laws directly related to China’s WTO entry. China’s permanent mission to the WTO was opened in Geneva on January 28, 2002.

China and the IMF

China joined the IMF on December 27, 1945, as one of its 35 original members. People's Republic of China assumed responsibility for China's relations with the IMF in April 1980.

In February 2001, the Board of Governors of the IMF approved an increase in China's quota from SDR 4,687.2 million to SDR 6,369.2 million. As a result of the increase, China's voting power in the IMF has increased from 2.19 to 2.95 percent of total.

China accepted the obligations of Article VIII the IMF Articles of Agreement on current account convertibility on December 1, 1996.

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The IMF holds annual Article IV consultations on economic developments and policy issues with China. In recent years, these discussions have focused on macroeconomic policies to cushion the impact of the Asian financial crisis and foster sustainable growth over the medium term.

Since 1981, China has twice used IMF credits -- in 1981 and in 1986. The credits under these arrangements have been fully repaid.

Technical assistance cooperation between China and the IMF has increased rapidly in recent years. Since 1990, technical assistance to China has taken the form of missions, seminars, and visits by experts, and has focused primarily on macroeconomic areas such as fiscal policy and tax administration, commercial and central banking legislation, development of monetary instruments and an inter-bank market, external current account convertibility and a unified foreign exchange market, and economic and financial statistics.

The IMF-sponsored training programs for Chinese officials included financial analysis and programming, balance of payments, public finance, government finance, and money and banking, external capital account convertibility, as well as methodologies in financial statistics compilation. In addition, many Chinese officials have attended courses and seminars at the Joint Institute in Vienna, Austria. Finally, the People's Bank of China and the IMF recently established a Joint China-IMF Training Program.

China and the APEC

In accordance with the Memorandum of Understanding signed by the People's Republic of China and APEC in 1991, the People's Republic of China became full member of APEC.

After the entry into APEC, China has been actively taking part in all kinds of activities of the organization and brought about positive effect on the recent corporation among APEC members by always holding a spirit of "seeking the same ideas and reserve the different ones."

Chinese president has attended the informal APEC Leaders' Meeting and gave important speech for eight times since the meeting was started in 1993. China's Minister of Foreign Affairs and Foreign Trade and Economic Co-operation have attended APEC's Joint Minister Meeting for 12 times. They have also made great affect in APEC's principles, activity spheres and organization. China's ministers of some special departments also contributed their own idea bout some policy and cooperation guideline to support the proposals of APEC leaders.

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II ECONOMY, CURRENCY AND FINANCE 1 Economic outlook After more than 50 years’ economic construction, China today is one of the major economic powers with the greatest potential of development in the world, and its people live a comparatively well-off life as a whole.

In the first 30 years (1949 to 1979) after the founding of the PRC, the Chinese government carried out a system of planned economy, and targets and quotas for various spheres of economic development were all set by the special “planning committees” of the state. Factories produced goods according to state plans, and farmers planted crops also according to state plans. Commercial departments replenished and sold their stocks according to state plans, and the qualities, quantities and prices of the goods were all fixed by planning departments. At the end of the 1970s, mindful of the gap in economic growth between China and other countries China’s leaders made a great decision to reform China’s decades-old economic system.

The reform began first in the rural areas in 1978, when the household contract responsibility system was introduced there. In 1984, the economic restructuring shifted from the rural areas to the cities. In 1992 the Chinese government formulated a policy to establish a market economy.

In 1997, the Chinese government stressed that the non-public sectors of the economy are an important component part of the socialist economy of China, in which profitability is encouraged for elements of production, such as capital and technology, making the economic restructuring march forward in bigger strides.

In 2001, reform in various fields was carried out smoothly, and saw great achievements. At present, a socialist market economy system is well on the way to being established in China, and the basic role played by the market has been improved in the sphere of resources allocation. At the same time, the macro-control system has basically taken shape. Moreover, the extensive mode of economic growth is being replaced by an intensive mode. China’s socialist market economy will be further improved by 2010, and by 2020 a comparatively mature socialist market economy structure will have been established in China.

According to the Tenth Five-Year Plan (2001-2005), the average annual economic growth rate will be about seven percent. By 2005, the GDP will reach about RMB 12,500 billion yuan (1,510.2 billion US dollars), calculated at the prices of 2000, and the GDP per capita will be RMB 9,400 yuan (1,135.7 US dollars). The average annual growth rate of the disposable income per urban resident and that of the net income per rural resident will both be about five percent.

From 2006 China will start its 11th Five-Year Plan for National Economy and Social Development (2006-2010). China aims to maintain average annual economic growth rate of 7.5 percent from 2006 to 2010, in line with the country's long-term goals. The targeted growth rate would deliver an objective in the 11th five-year plan for 2010 per-capita GDP to be double from US$854 in 2000.

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China will achieve the target by optimizing structure, improving efficiency and decreasing energy consumption. And the energy use per unit of GDP also known as ratio of total energy use to GDP will be reduced by 20 per cent from 2005. A group of enterprises with strong international competitiveness will be established in the next five years. Urban employment opportunities will be increased, the social security system improved and the number of poverty-stricken people reduced in the next five years. The income and living standards of Chinese people will be raised, while the quality of housing, communication, education, culture, public health and the environment will be improved remarkably.

Increase of China’s GDP

Year in RMB yuan (billions) in US dollar (billions) increase % 2001 10,965.52 1,175.73 8.3

2002 12,033.27 1,237.14 9.1 2003 13,582.28 1,640.97 10.0 2004 15,987.83 1,931.64 10.1 2005 18,232.06 2,225.67 9.9 Source: China Statistical Abstract 2006 Note: In December 2005, China raised the GDP in 2004 to RMB 15.99 trillion yuan

(US$1.93 trillion) from 13.65 trillion (US$1.64 trillion) based on the results of the country's first nationwide economic census in 2005.

Employment

Year Employed Persons (million persons)

Registered Unemployed Persons in

Urban Areas (million persons)

Registered Unemployed Rate in

Urban Areas 2001 730.25 6.81 3.6%2002 737.40 7.70 4.0%

2003 744.32 8.00 4.3%2004 752.00 8.27 4.2%2005 758.25 8.39 4.2%

Source: China Statistical Abstract 2006

Annual Change of Price Indices (Inflation Rate)

Preceding year = 100

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Year Retail Price Index Consumer Price Index 2001 99.2 100.7

2002 98.7 99.2

2003 99.9 101.22004 102.8 103.92005 100.8 101.8


2 Main industries Farming, Forestry, Animal Husbandry and Fishery Cultivated land, forests, grasslands, deserts and tidelands are distributed widely across China. Cultivated land is mainly located in east China, grasslands are mainly located in north and west China, and forests mainly in the remote northeastern and southwestern areas. The cultivated land currently available in China is about 130 million hectares, of which only 50 per cent is irrigatable. China’s forestry resource is very limited, the percentage of forest coverage was only 18.21 percent in 2005. China has four large seas, and the sea fishing area covers 2.8 million km2 . China’s total inland fresh water area is 17.47 million hectares, of which, 6.75 million hectares are cultivatable area. In 2005, China’s utilizable grassland area was 400 million hectares, stretching more than 3,000 km from the northeast to the southwest. They are the centers of animal husbandry. China’s cultivated lands, forests and grasslands are among the world’s largest in terms of sheer area. But due to China’s large population, the areas of cultivated land, forest and grassland per capita are small, especially in the case of cultivated land, only one third of the world’s average. For a long period of time, the Chinese Government has regarded farming, forestry, animal husbandry and fishery as the foundation of the national economy, and issued policies in favor of them while allocating large amounts of funds and materials to support them. In 2005, China produced 484.02 million tons of grain, 5.71 million tons of cotton, 30.77 million tons of oil-bearing crops, 161.20 million tons of fruits, 61.58 million tons of pork, mutton and beef, 28.65 million tons of milk, and 51.06 million tons of aquatic products. The rapid increase of the output of these products has further consolidated the position of farming, forestry, animal husbandry and fishery serving as the foundation of the national economy, and continuously strengthened their positions among the same trades in the world. From 1990s, the output of cereals, meat, cotton, peanuts, fruits and tobacco ranked the first in the world, and output of tea, sheep wool ranked the second place in the world. Nevertheless, considering its large population, China’s agricultural output per capita is still low in comparison with that of other countries in the world.

Output of Main Farming, Forestry, Animal Husbandry and Fishery Products

Unit: Million tons

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Products 2001 2002 2003 2004 2005

Rice 177.58 174.54 160.66 179.09 180.59

Wheat 93.87 90.29 86.49 91.95 97.45

Corn 114.09 121.31 115.83 130.29 139.37

Cotton 5.32 4.92 4.86 6.32 5.71

Peanuts 14.42 14.82 13.42 14.34 14.34

Rapeseeds 11.33 10.55 11.42 13.18 13.05

Fruits 66.58 69.52 145.17 153.41 161.20

Tobacco 2.35 2.45 2.26 2.41 2.68

Meat 63.34 65.87 69.33 72.45 77.43

Milk, 11.23 14.00 18.49 23.68 28.65

Sheep Wool 0.30 0.31 0.34 0.37 0.39

Aquatic Products 43.81 45.65 47.05 49.02 51.06

Rubber 0.48 0.53 0.57 0.58 0.51

Tea 0.70 0.75 0.77 0.84 0.94


Main Producing Areas of Selected Agriculture Products

Products Main producing areas Share

Rice Hunan, Jiangsu, Jiangxi, Sichuan 39%

Wheat Henan, Shandong, Hebei 54%

Corn Shandong, Jilin, Henan 35%

Cotton Xinjiang, Henan, Shandong 57%

Peanuts Shandong, Henan, Hebei 56%

Rapeseeds Hubei, Anhui, Jiangsu, Sichuan 57%

Fruits Shandong, Guangdong, Hebei 35%

Tobacco Yunnan, Guizhou, Henan 52%

Meat Shandong, Sichuan, Hebei 25%

Milk, Heilongjiang, Hebei, Inner Mongolia 37%

Sheep Wool Xinjiang, Inner Mongolia 44%

Aquatic Products Shandong, Guangdong, Zhejiang 40%

Rubber Hainan, Yunnan 95%

Tea Zhejiang, Fujian, Hubei, Hunan 53%

Source: Beijing CDS Information Consulting Co. Mining China is rich in mineral resources, and all the world’s known minerals can be found here. To date, geologists have confirmed reserves of 153 different minerals, putting China third in the world in total reserves. China leads the world in the reserves of 11 minerals including titanium, tungsten,

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antimony, rare earth, tantalum and heavy spar. The country ranks second in the reserve of 12 other minerals such as aluminum, coal, tin, niobium, silver and lithium. Those minerals can not only meet domestic demand, but also are important export products. Other products, like chromium and bismuth, the reserves of which are proven small, need to be imported for a certain quantity to support the domestic consumption. Coal is a major source of energy in China, accounting for 75 percent of the nation's energy consumption. China’s coal reserves total 1,007.1 billion tons, mainly distributed in north China, with Shanxi Province and the Inner Mongolia Autonomous Region taking the lead. China’s iron reserves rank fifth in the world after Russia, Brazil, Canada, and Australia. Proved iron reserve is about 50 billion tons, and about 25.7 billion tons can be used. Iron reserves are widely dispersed in 28 provinces and autonomous regions. Reserves in Liaoning, Hubei, and Sichuan provinces account for 51 percent of the total. The country also abounds in petroleum, natural gas, oil shale, phosphorus and sulphur. Petroleum reserves are mainly found in the northwest, northeast and north China, as well as in the continental shelves of east China. The national reserves of rare earth metals far exceed the combined total for the rest of the world In China, proved copper sites of deposits are more than 800, and mainly distributed in the middle and lower reaches of the Yangtze River. Proved wolfram reserves in China is over three times the proved reserves in all other countries in the world. They are mainly distributed in Guangdong, Hunan. China's gold reserves are mainly distributed in the Kunlun-Qinling-Dabie Mountain Ranges. Continuous prospecting has proved that the gold reserves in Zhaoyuan County of Shandong Province, which boasts one of the country's biggest and earliest gold mines, are more than 10 times what they were previously estimated to be. The Xiao Qinling area is another base of gold reserves in Central China. Rare metals and rare-earth metals have been found in more than 20 provinces and autonomous regions in China. Large-scale deposits are mainly distributed in Inner Mongolia and Xinjiang Autonomous Regions, Sichuan, Fujian, and Jiangxi provinces. The nation's proved reserves of such rare metals as beryllium, lithium, niobium, and tantalum are among the richest in the world. Industry Since 1979, Chinas industrial production has increased at a high speed with the average annual growth rate came to 11.6 percent, and the nation's industrial added value came to 6642.52 billion yuan (810.88 billion US dollar) in 2005, an increase of 16.4 percent over that of the previous year. Since 1996, China has been in the lead in the production of steel, coal, cement, farm-use chemical fertilizers and television sets.

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At present, China has formed a modern industrial set-up with independent and necessary trades. In view of the worlds conventional classification of industrial trades, China has set up more than 500 industrial trades. China has formed such manufacturing industries as modern metallurgical equipment, mining equipment, large power facilities, planes, automobile, large and precise machine tools, high-grade alloy and key nonferrous metal smelting, space industry, large integrated circuit, electronic computer, telecommunications and transmission equipment as well as precise instruments and meters. At present, China is able to rely on its own technical forces to develop heavy industries including mining, power plant, metallurgy, oil, chemicals, automobile and ship-building. Power and Petroleum Industries Of all Chinese industries, the thermal, hydro and nuclear power industries have developed the most rapidly. In 2005, the total generated electricity came to 2,474.70 billion kwh. The average annual growth rate of generated electricity reached 9.4 percent. Now China ranked second in the world in terms of both power generating capacity and electricity output. China’s power resources are not distributed evenly. The vast central and western region is rich in hydropower resources and has large coal reserves, whereas economically developed eastern coastal region is relatively deficient in energy resources. China will accelerate energy development and construction of energy production centers in the central and western region, propel abundant power supply from the central and western region to the eastern region, and connect all of its power grids as soon as possible. In 2005, China produced 180.84 million tons of crude oil and 50.0 billion m3 of natural gas, increasing 0.9 percent and 11.5 percent respectively over the previous year. China’s on-shore oil fields are primarily concentrated in the eastern part. In recent years, with constant development, off-shore oil fields have reported rapid growth of crude oil production. Since China’s economy has been growing rapidly, its domestically –produced crude oil can not fully meet its needs. So, since the beginning of the mid-1990s,China has had to import some crude oil each year. Machine-building and Auto Industries China’s machine-building industry can provide advanced complete sets of equipment, including power generating equipment such as large gas turbines, large pump storage groups and nuclear power sets, ultra-high voltage direct-current transmission and transformation equipment, large complete metallurgical, fertilizer and petrochemical plants, city track transport equipment, new paper-making and textile machinery, etc. Electro-mechanical products have become pillar exports for China. In the 1990s, as one of the country’s pillar industries, the auto industry developed steadily, and the output of automobiles increased from 1.45 million in 1995 to 5.70 million in 2005. The number of privately-owned automobiles increased from 2.5 million in 1995 to 18.51 million in 2005, with an

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average annual growth rate over 20 percent. Information Industry In China, the Internet has become an indispensable part of Chinese people’s life. By the end of 2005, the number of Internet users has reached 111 million. Chinese computer groups, with Legend (Lenove) and Founder as the representatives, besides occupying leading positions in the domestic market, have entered the world market with their products. To date, information industry has become the first pillar of China’s industry. Statistics show that the output value, sales volume and profit of the electronic and telecommunications equipment industries have all surpassed those of the traditional industries, making the greatest contribution to the growth of the national economy. As for the construction of the telecommunications network, a basic transmission network featuring a large capacity and a high speed is now in place. It covers the whole country, with optical cables as the mainstay, and satellite and digital microwave systems as the supplement. In 1998, China completed its “eight from east to west and eight from north to south” lattice-type optical cable network, linking all the provincial capital cities and over 90 percent of counties and cities. Except for Lhasa, the capital city of Tibet, each provincial or autonomous regional capital is connected by at least two optical cables. In the coastal and economically advanced hinterland areas, optical cable has reached townships, towns, urban residential quarters and multi-storeyed buildings, thus becoming the main technological means for transmitting information. Meanwhile, all the provinces have set up satellite communication earth stations, with more than 20,000 satellite circuits, and digital microwave routes stretching more than 60,000 km. Meanwhile, China has participated in the construction of a number of international land and sea-bed optical cables, such as the China-Japan, China-ROK and Asia-Europe sea cables, and Asia-Europe and China-Russia land optical cables. China initiated the construction of the 27,000-km Asia-Europe Land Optical Cable, which starts from Shanghai in the east and reaches Frankfurt in Germany in the west, passing through 20 countries. It is the longest land optical cable system in the world today.

In 1987, China started the mobile telecommunication business, which has developed rapidly since the beginning of the 1990s, with an average annual growth rate of more than 100 percent. At present, the mobile phone network covers all the large and medium-sized cities, and more than 2,000 small cities and county towns. China has established automatic roaming with 60 companies in 38 countries and regions.

In 1992, China started the large-scale construction of the public data telecommunications network, which has now taken initial shape, with group exchange data network, digital data network, computer Internet, multi-media telecommunications network and frame relay network as the mainstay, covering over 90 percent of counties and cities in China. The telecommunication ability reaches 610,000 ports, making it one of the largest public data telecommunications networks in the world. China has also put great efforts into the international telecommunications business, which has basically met the needs of the opening-up. During the 10th Five-Year Plan period (2001-2005), the public telephone network developed very

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fast, at the end of 2005 China had a total of 26.61 million public telephone users. China’s public telephone network offers ordinary services as well as Internet on-line services to rural, border and remote areas, the latter being the major sector of growth. Mobile communications continued to grow at a high speed, and the number of users reached350.43 million in 2005. The Internet and relevant services developed rapidly too, and the number of users increased to more than 111 million. A new broadband high-speed public information network on the basis of IP technology also developed at a high speed. E-commerce, distance education and various other network-based forms of digital economy and social activities were promoted. Radio and TV networks continued to develop at a high speed, the number of radio and TV users scheduled to exceed 200 million by 2005, when almost all villages in China will then have access to radio and TV programs. Chinese government requests the American search sites as google to facilitate the government censorship. Google, the world's most popular Internet search engine, launched a Chinese-language service in January 2006, that would be stripped of content deemed offensive or subversive. The self-censorship was the first for Google in China. The company does not restrict access to Websites on its English-language search engine, though government censors do block links to forbidden material. Other Internet giants including Yahoo and Microsoft's MSN have also censored material "in exchange" for being allowed to tap a market comprising 110 million Internet users, the world's second-largest market. The government bars access to 20 broad content categories, including pornography and other banned material. Cyber surfers who enter forbidden keywords in the search engine at the new www.google.cn will receive this message: "In line with local laws and policies, parts of the result are not listed." New and High Technology Industry According to statistics, China has made 493,000 important scientific and technological achievements since 1981, of which nearly 20 percent have reached the advanced international levels. To speed up the transfer of scientific and technological achievements, and promote the development of high-tech industry, the Chinese government has implemented a series of policies. At present, over 80 percent of the nation’s sci-tech force have been engaged in economic development work and the overwhelming majority of the scientific research institutes specializing in developing technology have gradually taken the road of independent development geared to market operations. In recent years, the business volume of the nation’s technology market has increased at an annual rate of over 50 percent.

New and high technology development zones have developed fast. State-level development zones of this kind now number 53, and are home to more than 20,000 enterprises, with a total of well over 100 million employees. The output value per capita of most enterprises exceed RMB 100,000 yuan (12,082 US dollars). Among them, 1,252 enterprises have registered an annual production

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value of over RMB 100 million yuan (12.08 million US dollars), 143 over RMB one billion yuan (0.12 billion US dollars), and six over RMB 10 billion yuan (1.2 billion US dollars).

Establishing export bases for new and high-technology products in selected state new and high technology industrial development zones is an important part of the plan for developing trade by means of science and technology worked out and implemented by the Chinese government. The Beijing Zhongguancun Science and Technology Park and 16 state new and high technology industrial development zones in Tianjin, Shanghai, Heilongjiang, Jiangsu, Anhui, Shandong, Hubei, Guangdong, Shaanxi, Dalian, Xiamen, Qingdao and Shenzhen have been designated as the first group of export bases, thanks to their rapid overall development, favorable hard and soft environments, and rapid increase of the export volume of new and high-technology products.

Tourism China is rich in tourist resources with its long history, many scenic spots and historic sites, famous mountains and great rivers, distinctive operas, music, dances and folklore, and world-renowned Chinese cuisine.

In recent years, China has met the demands of tourists at various levels by building, expanding and renovating a lot of hotels and restaurants. At present, there are more than 9,000 star-level hotels around the country. All large and medium-sized cities and tourist sites have hotels with complete facilities and excellent services for domestic and international tourists.

In 2005, 120.29 million tourists entered China, or an increase of 10 percent over the previous year, and the foreign exchange earning from tourism reached 29.3 billion US dollar, or an increase of 14 percent over that of the previous year. The income from domestic tourism has grown by a large margin, coming to RMB 528.59 billion yuan (64.53 billion US dollars), or an increase of 12 percent over that of the previous year. The growth speed of income from tourism remained higher than the overall growth speed of the national economy. Tourism has become a rising industry with the greatest vitality in China’s economic development, as well as one of the new economic growth points.

Construction Industry

Construction industry has developed rapidly in China. In 2005, its value added reached RMB 670.9 billion yuan (81.9 billion US dollars), or an increase of 19.5 percent over that of the previous year. At present, governments at all levels in China have special institutions in charge of the bidding work on the construction market. Meanwhile, intermediate organizations such as project consulting companies and project supervision and management companies have made rapid progress. The practice of Chinas construction industry is closer to the international convention.

With the enhancement of enterprise quality as a whole, the competitive power of Chinas construction industry on the international construction market has increased steadily.

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3 Currency and finance Currency The currency of China is Renminbi, its unit is yuan (￥). As China’s legal currency, Renminbi is issued and controlled solely by the People’s Bank of China (PBoC). The exchange rates of the Renminbi are decided by PBoC and published by the State Administration of Exchange Control (SAEC). China adopts a regulated, floating-exchange-rate system based on market supply and demand. Along with its financial reform, China will further explore and improve the exchange-rate regime based on its economic development and performance as well as international balance of payment. On December 1, 1996, China formally accepted the Article Eight of the Agreement on International Monetary Fund, and realized the Renminbi’s convertibility under the current account ahead of schedule. On July 21, 2005, China cut the yuan's decade-long peg to the dollar, allowing its currency to move in a restricted float. China's central bank announced that the renminbi would no longer be pegged to a single currency following the rate reform. Instead, as the value of the yuan will be adjusted with reference to a basket of currencies, the mutual changes of major currencies in the world market would reduce the yuan's fluctuation. Dominant currencies used to determine the value of the yuan are the US dollar, the euro, the yen and South Korea's won. The Singapore dollar, pound sterling, the Malaysian ringgit, the Russian rouble, the Australian dollar, the Thai baht and the Canadian dollar are also considered in the calculation.

Annual Average Exchange Rate of RMB yuan Against US dollar (Middle Rate)

Year Exchange Rate 2001 8.2770

2002 8.27702003 8.2770

2004 8.27682005 8.1917

Source: China Statistical Abstract 2006 4.Balance of Payments and International Reserves Balance of Payments

Balance of Payments (Local official data)

Unit: million US dollars

Item 2004 2005

Balance Credit Debit Balance Credit Debit

I. Current Account 68659.16 700697.01 632037.85 160818.31 903581.79 742763.48

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A. Goods and Services 49283.64 655826.58 606542.93 124797.7 836887.83 712090.13

a. Goods 58982.28 593392.51 534410.24 134189.1 762483.73 628294.64

b. Services -9698.63 62434.07 72132.7 -9391.39 74404.1 83795.49

1.Transportation -12476.27 12067.49 24543.76 -13021.02 15426.52 28447.55

2.Tourism 6589.7 25739 19149.3 7536.93 29296 21759.07

3.Telecommunication -31.74 440.46 472.2 -118.17 485.23 603.4

4.Construction 128.66 1467.49 1338.83 973.57 2592.95 1619.38

5.Insurance -5742.79 380.78 6123.57 -6650.14 549.42 7199.56

6.Finance services -44.15 93.95 138.1 -14.24 145.23 159.48

7.IT services 384.4 1637.15 1252.75 217.68 1840.18 1622.51

8.Utilization of IPR -4260.25 236.36 4496.61 -5163.85 157.4 5321.25

9.Consulting services -1581.79 3152.52 4734.31 -861.41 5322.13 6183.54

10.Adivertasment services 150.29 848.63 698.34 360.52 1075.73 715.21

11.Film and Audio and Video -134.84 40.99 175.83 -20.1 133.86 153.95

12.Other business services 7472.62 15950.75 8478.14 7497.03 16884.78 9387.75

13.Other government services -152.49 378.5 530.99 -128.18 494.66 622.84

B Income -3522.67 20544.1 24066.76 10635.14 38959.1 2823.96

1.Staff and worker's remuneration 632.19 2014.36 1382.17 1519.65 3337.06 1817.41

2.Investment income -4154.86 18529.74 22684.6 9115.49 35622.04 26506.55

C. Current Transfer 22898.19 24326.34 1428.15 25385.47 27734.86 2349.39

1.Governments -89.06 97.54 186.59 -176.23 48.85 225.08

2.Other Departments 22987.25 24228.8 1241.55 25561.7 27686.01 2124.31

II. Capital and Finance Account 110659.76 343350.15 232690.4 62963.92 418956.2 355992.28

A. Capital Account -69.35 69.35 4101.79 4155.15 53.36

B. Financial Account 110729.1 343350.15 232621.05 58862.12 414801.05 355938.93

1.Direct Investments 53131.43 60905.78 7774.35 67821.04 86071.26 18250.22

2.Securities 19689.87 20262.12 572.24 -4932.84 21997.44 26930.27

3.Other investment 37907.8 262182.26 224274.46 -4026.08 306732.35 310758.43

III. Reserve Assets -206364 478 206842 -207016 1929 208945

1.Gold Reserves

2.SDR -161 161 -5 5

3.China's Reserve in IMF 478 478 1929 1929

4.Foreign Exchange -206681 206681 -208940 208940

5.Other Creditor's rights

IV. Net Error and Omission 27045.08 27045.08 -16766.23 16766.23

Source: China Statistical Abstract 2006 International Reserves China's growing trade surplus had boosted reserves, in 2005, China's foreign exchange reserves, the world's largest, rose by more than US$200 billion to $818.87 billion.

International Reserves

３９


Unit: million US dollars

Descriptor 2001 2002 2003 2004 2005 Gold in million ounces 16.10 19.29 19.29 19.29 19.29

Gold AC.to National Valuation 3,093.00 4,074.00 4,074.00 4,074.00 4,074.00

Holding of SDRS 850.58 998.15 1,101.59 1,247.08 1,251.15

Reserve position in IMF 2,589.55 3,722.67 3,798.07 3,320.46 1,390.71

Foreign exchange 212,165.00 286,407.00 403,251.00 609,932.00 818,872.00

Total reserves minus gold 215,605.00 291,128.00 408,151.00 614,500.00 821,514.00

Source: IMF, International Financial Statistics Public Finance From a base of just over 318.92 billion US dollars for 2004, national revenue rose to 386.10 billion US dollars, 67.18 billion US dollars or 21.4 percent more than the previous year National expenditures totaled 411.49 billion US dollars, an increase of 67.31 billion US dollars or 19.5 percent year-on-year Expenditures exceeded revenue by 25.09 billion US dollars in 2005.

Total Budgetary Revenue and Expenditure

Unit: billion US dollars

2001 2002 2003 2004 2005

Total Revenue 197.97 228.51 262.36 318.92 386.10 Total Expenditure 228.38 265.94 297.81 344.18 411.49 Balance -30.4 -37.43 -35.46 -25.26 -25.39


Banking System China’s bank structure mainly includes the central bank, policy banks, wholly State-owned commercial banks, incorporated commercial banks, and foreign banks in China. The Central Bank The People’s Bank of China (PBoC) is the central bank independently in charge of the monetary policy under the leadership of the State Council. Its main duty is to stabilize currency and supervise the banking. At present, the Peoples Bank of China is engaged in the management of credit funds and proportion of assets and liabilities among commercial banking organizations. Policy-lending Banks The main aim of the policy banks is to realize the policy of the government. The source of capital of those banks is through the allocation of State budget, the operation capital is for

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long-time credit, and the interest rate of loans is usually lower than that of the commercial banks during the same period. The policy banks of China include the State Development Bank of China, the Export-Import Bank of China, and the Agricultural Development Bank of China. Wholly State-owned Commercial Banks These nationwide commercial banks include Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and Construction Bank of China. Incorporated Commercial Banks The incorporated commercial banks include Bank of Communications, CITIC Industrial Bank, Ever Bright Bank, Huaxia Bank, Investment Bank of China, Merchants Bank, Guangdong Development Bank, Shenzhen Development Bank, Pudong Development Bank, Fujian Xingye Bank, and etc. Besides, there are a few dozen city cooperation banks or city commercial banks. Foreign Banks in China Since 1979, when the first foreign-funded financial institution opened a representative office in China, foreign-funded financial institutions have become an important part of Chinas financial system, and a key channel to help China to import overseas funds. By the end of 2000, the number of foreign banking institutions operating in China reached 191, with a total capital of 34.43 billion US dollars, and 33 foreign banks obtained the permission to exercise Renminbi business.

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III FOREIGN TRADE 1 Recent evolution: General considerations Prior to 1978, foreign trade was not a significant part of China’s economy. However, as a key component of the 1978 economic reform program, the government sought to attract foreign investments to China and develop foreign trade. Since then, foreign trade has become an increasingly important part of PRC economy. Imports provide China with advanced technologies and equipment, which china needs to modernize its economy, and exports provide China with foreign exchange needed for the purchase of such technologies and equipment, as well as increased employment opportunities. Although overall foreign trade policy is formulated by the central government, the local government and enterprises have enjoyed autonomy in conducting foreign trade activities. China’s trading partners include over 200 countries and regions throughout the world. China’s foreign trade has grown significantly since 1978 in both value and in the range of products traded. Overall foreign trade policy is formulated by the central government. However, local governments and enterprises enjoy increasing autonomy in conducting foreign trade activities. Individuals and privately owned enterprises can now import and export goods. The government believes that China’s accession to the WTO has further enhanced its trade relationships with other countries and regions. China’s entry into the World Trade Organization (WTO) on December 11th 2001 further promoted the trade. China’s total foreign trade volume increased from US$1,154.6 billion in 2004 to US$1,421.9 billion in 2005. China’s exports in 2005 increased by 28.4% to US$762 billion and its imports increased by 17.6% to US$660 billion, each as compared with 2004. As a result of rapid industrial growth and the inflow of foreign capital, manufactured goods have become China’s major exports in recent years. The composition of imports has also changed in recent years as imports of manufactured goods have steadily outpaced imports of primary goods.

China’s Foreign Trade 2003 – 2005

Unit: in US$ billions, imports CIF export FOB

Year Imports Change (%) Exports Change (%) Balance Changes (%)

2003 412.8 39.9 438.4 34.6 25.53 -15.9

2004 561.4 36.0 593.4 35.4 32.0 25.5

2005 660.1 17.6 762.0 28.4 101.9 218.4

Source: China’s Customs Statistics and Ministry of Commerce, People’s Republic of China

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2 Direction

China’s imports from main areas and countries 2003 - 2005

Unit: in US$ billions (CIF)

Areas and countries 2003 Share (%) 2004 Share (%) 2005 Share (%)

Japan 74.1 17.9 94.4 16.8 100.5 15.2

South Korea 43.1 10.4 62.2 11.1 76.8 11.6

ASEAN 47.3 11.4 63.0 11.2 75.0 11.4

Taiwan 49.3 11.9 64.8 11.5 74.7 11.3

EU 53.0 12.8 70.1 12.5 73.6 11.1

USA 33.8 8.2 44.7 8.0 48.7 7.4

Australia 7.3 1.8 11.5 2.0 16.2 2.5

Russia 9.7 2.3 12.1 2.1 15.9 2.4

Hong Kong 11.1 2.7 11.8 2.1 12.2 1.8

Brazil 5.8 1.4 8.7 1.5 10.0 1.5

India 4.3 1 7.2 1.3 9.8 1.5

Canada 4.4 1.1 7.3 1.3 7.5 1.1

South Africa 1.8 0.4 3.0 0.5 3.4 0.5


China’s exports to main areas and countries 2003 - 2005

Unit: US$ billions (FOB)

Areas and countries 2003 Share (%) 2004 Share (%) 2005 Share (%)

USA 92.5 21.1 124.9 21.0 162.9 21.4

EU 72.1 16.4 107.2 18.1 143.7 18.9

Hong Kong 76.3 17.4 100.9 17.0 124.5 16.3

Japan 59.4 13.5 73.5 12.4 84.0 11.0

ASEAN 30.9 7.0 42.9 7.2 55.4 7.3

South Korea 20.1 4.6 27.8 38.4 35.1 4.6

Taiwan 9.0 2.0 13.5 2.3 16.5 2.2

Russia 6.0 1.4 9.1 1.5 13.2 1.7

Canada 5.6 1.3 8.2 1.4 11.7 1.5

Australia 6.2 1.4 8.8 1.5 11.1 1.5

India 3.3 0.8 5.9 1.0 8.9 1.2

Brazil 2.1 0.5 3.7 0.6 4.8 0.6

South Africa 2.0 0.4 2.9 0.5 3.8 0.5

Source: China’s Customs Statistics and Ministry of Commerce, People’s Republic of China 3 Composition

China’s major imported goods 2003 - 2005

４３


Unit: US$ billions (CIF)

Products 2003Share

% 2004Share

% 2005 Share

%

Electrical machinery and household

appliances 79.8 19.3 110.5 19.7 137.7 20.9

Petroleum and petroleum products 26.7 6.5 44.5 7.9 59.5 9.0

Scientific instruments and apparatus 20.3 4.9 33.3 5.9 41.3 6.3

Metalliferous ores and metal scrap 11.8 2.9 25.2 4.5 36.2 5.5

Office machines and automatic data

processing machines 24.2 5.9 29.6 5.3 35.8 5.4

Telecommunications and parts 19.5 4.7 24.6 4.4 29.4 4.5

Organic chemicals 15.8 3.8 23.7 4.2 27.9 4.2

Plastics in primary forms 15.7 3.8 22.0 3.9 26.3 4.0

Iron and steel 22.0 5.3 23.4 4.2 26.2 4.0

General industrial machinery and parts 16.6 4 22.7 4.0 24.3 3.7


China’s major exported goods 2003 - 2005

Unit: US$ billions (FOB)

Products 2003Share

% 2004Share

% 2005 Share

%

Office machines and automatic data

processing machines 62.5 14.3 87.1 14.7 110.7 14.5

Telecommunications and parts 45.0 10.3 68.5 11.5 94.9 12.5

Electrical machinery and household

appliances 42.3 9.6 59.5 10.0 75.5 10.0

Apparel and clothing accessories 52.1 11.9 61.9 10.4 74.2 9.7

Textile yarn, fabrics and made-up

articles 26.9 6.1 33.4 5.6 41.0 5.4

Metal products 15.0 3.4 20.9 3.5 27.4 3.6

General industrial machinery and parts 13.6 3.1 19.9 3.4 25.8 3.4

Road vehicles 11.4 2.6 16.3 2.7 21.7 2.7

Iron and steel 4.8 1.1 13.9 2.3 19.3 2.5

Footwear 12.9 2.9 15.2 2.6 19.1 2.5


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IV ECONOMIC RELATIONS BETWEEN BRAZIL AND

CHINA 1 Bilateral trade: Evolution of Sino-Brazil Trade

In 1949 when People’s Republic of China was established, Brazil and China had made some trade contacts. Due to geographical inconvience, however, trade volume was very small. Since 1974, when diplomatic relations were formally established, bilateral trade has increased, albeit not proportionally to the potential of both markets. Although the average pattern has been one of long-term trade growth, commercial contacts between Brazil and China have not increased steadily during most of these roughly 30 years. The bilateral trade reached the first record high in 1985 when it hit US$1.41 billion, accounting for 55% of the total Sino-Latin American trade. During 1990-1991, trade between China and Brazil suffered a sharp decline. Starting in 1993, bilateral trade saw a significant turn with a 80.6 % rise over 1992 to reach US$1.06 billion. The growth of bilateral trade lasted till 1997, when it reached a new record high with US$ 2.5 billion. However, starting in 1998, bilateral trade saw a down-turn to decline, though Brazil still positions as China’s number one trade partner in Latin America. Since the end of 1999, however, trade has consistently increased at unprecedented levels. According to China Customs, the bilateral trade between Brazil and China in 2005 reached US$14.82 billion, up by 20%, among which China’s import from Brazil was US$9.99 billion, up by 15.2%. China’s major imports from Brazil included iron ores and concentrates, soybeans, steel billet and primarily forged steel pieces, rolled steel, steel plates, paper pulp, soybean oil, manganese ores and concentrates, crude oil, etc. According to the data from SECEX/DECEX MDIC, the total trade flow between the two countries grew from 3.2 billion dollars in 2001 to the record of 12 billion dollars in 2005, a growth of 275 % in five years. According to MDIC, total trade volume between Brazil and China in 2005 reached US$ 12.11 billion, up 33.19 percent. And Brazil has a favorable balance of US$1.48 billion, up 14.45 percent. Brazilian exports to China in 2005 reached US$6.833 billion, up 25.63 percent, and China was the 3rd largest export destination of Brazil.

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Brazilian imports from China in 2005 reached US$5.353 billion, up 44.28 percent, and China was the 4th largest import origin of Brazil.

Table 1 Brazil: trade exchange with China 2003 – 2005 (DECEX)

Unit: US$ billion (FOB)

2001 2002 2003 2004 2005

Export 1.902 2.520 4.530 5.440 6.833

% growth 75.3 32.5 79.83 20 25.63

% share 3.27 4.18 6.20 5.64 5.78

Import 1.328 1.555 2.148 3.710 5.353

% growth 8.7 16.99 38.2 72.7 44.28

% share 2.39 3.29 4.45 5.91 7.28

Total 3.230 4.075 6.680 9.150 12.110

Trade Balance 0.574 0.965 2.380 1.730 1.480

Source: DECEX 2 Composition of bilateral trade Brazil: main products exported to China 2003 – 2005

Unit: US$ million (FOB)

H.S. Code 2003 Share % 2004 Share % 2005 Share %

12010090 1,313.07 28.97 1,621.74 29.81 1,716.92 25.12

26011100 520.77 11.49 781.36 14.36 1,242.54 18.18

26011200 244.09 5.39 333.59 6.13 542.09 7.93

27090010 22.27 0.49 210.13 3.86 541.63 7.93

24012030 54.55 1.2 101.74 1.87 246.67 3.61

47032900 259.39 5.72 252.16 4.64 230.10 3.37

72091700 151.59 3.34 49.96 0.92 165.02 2.41

15071000 256.40 5.66 422.87 7.77 144.04 2.11

44079990 61.96 1.37 81.94 1.51 100.58 1.47

02071400 6.68 0.15 33.69 0.62 78.31 1.15

72029300 24.83 0.55 23.34 0.43 76.29 1.12

52010020 11.24 0.25 15.15 0.28 62.54 0.92

41044130 45.34 1.0 48.30 0.89 60.53 0.89

84621011 --- --- --- --- 48.41 0.71

25161200 19.34 0.43 23.65 0.43 46.19 0.68

Source: DECEX

Note: Description for H.S. Code in above table

４６


12010090 OUTROS GRAOS DE SOJA, MESMO TRITURADOS 26011100 MINERIOS DE FERRO NAO AGLOMERADOS E SEUS CONCENTRADOS 26011200 MINERIOS DE FERRO AGLOMERADOS E SEUS CONCENTRADOS 27090010 OLEOS BRUTOS DE PETROLEO 24012030 FUMO N/MANUF. TOTAL/PARC. DESTEL. FLS. SECAS, ETC. VIRGINIA 47032900 PASTA QUIM. MADEIRA DE N/CONIF. A SODA/SULFATO, SEMI/BRANQ 72091700 LAMIN. FERRO/ACO, A FRIO, L>=6DM, EM ROLOS, 0.5 MM<=E<=1MM 15071000 OLEO DE SOJA EM BRUTO, MESMO DE GOMADO 44079990 OUTRAS MADEIRAS SERRADAS/CORTADAS EM FOLHAS, ETC. ESP>6MM 02071400 PEDACOS E MIUDEZAS, COMEST. DE GALOS/GALINHAS, CONGELADOS 72029300 FERRONIOBIO 52010020 ALGODAO SIMPLESMENTE DEBULHADO, NAO CARDADO NEM PENTEADO 41044130 OUTS. COUROS/PELES BOVINOS, SECOS, PENA FLOR 84621011 MAQUINAS FERRAM. P/ESTAMPAR METAIS, C/COMANDO NUMERICO 25161200 GRANITO CORTADO EM BLOCOS OU PLACAS Brazil: main products imported from China 2003 - 2005

Unit: US$ million (FOB)

H.S. Code 2003 Share % 2004 Share % 2005 Share %

85299019 91.80 4.27 162.16 4.37 396.49 7.41

90138010 82.05 3.82 159.18 4.29 255.94 4.78

27040010 213.53 9.94 338.91 9.13 163.57 3.06

85219090 5.59 0.26 51.71 1.39 121.19 2.26

85252022 3.54 0.16 25.66 0.69 101.97 1.9

85299020 59.52 2.77 99.2 2.67 90.83 1.7

54075210 35.05 1.63 68.74 1.85 74.35 1.39

85340000 20.86 0.97 40.68 1.1 69.58 1.3

85078000 22.28 1.04 51.69 1.39 58.88 1.1

85229050 28.01 1.30 38.65 1.04 58.60 1.09

85422929 5.43 0.25 31.28 0.84 47.84 0.89

84733041 10.8 0.50 26.28 0.71 44.98 0.84

85254090 6.31 0.29 20.94 0.56 43.71 0.82

85271390 20.13 0.94 49.07 1.32 37.87 0.71

85422128 8.82 0.41 20.97 0.57 36.53 0.68

Source: DECEX

Note: Description for H.S. Code in above table 85299019 OUTRAS PARTES P/APARELHOS TRANSMISSORES/RECEPTORES 90138010 DISPOSITIVOS DE CRISTAIS LIQUIDOS (LCD) 27040010 COQUES DE HULHA, DE LINHIA OU DE TURFA 85219090 OUTROS APARELHOS VIEDEOFONICOS DE GRAVACAO/PEPRODUCAO 85252022 TERMINAIS PORTATEIS DE TELEFONIA CELULAR

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85299020 OUTS. PARTES P/APARELHO RECEPT. RADIODIF. TELEVISAO, ETC. 54075210 TECIDO DE FILAM, POLIESTER TEXTUR>=85%, TINTOS, S/BORRACHA 85340000 CIRCUITO IMPRESSO 85078000 OUTROS ACUMULADORES ELETRICOS 85229050 MECANISMOS TOCA-DISCOS, MESMO C/CAMBIADOR, P/APARS. REPROD 85422929 OUTS. CIRCUITOS INTEGRADOS MONOLIT. MONTADOS 84733041 PLACAS-MAE MONTAD. P/MAQS. PROC. DADOS (CIRCUITO IMPRESSO) 85254090 OUTRAS CAMERAS DE VIDEO 85271390 OUTS. APARS. RECEPT. RADIODIF. COMB. APARS. SOM, PILHA/ELETR 85422128 OUTS. MEMORIAS MONTADAS P/MONTAG. SUPERF 3.Investimentos bilaterais Investments by China in Brazil According to the Ministry of Commerce (MOFCOM), by the end of 2005 China established 89 joint ventures in Brazil, and Chinese side invested 151 million US dollars (actual invested amount). Chinese enterprises are advised to invest in household electronic appliances, telecommunication, wood processing, transportation and mineral projects. Baosteel Shanghai Baosteel Group signed cooperation agreements with Companhia Vale do Rio Doce SA (CVRD) of Brazil on May 13, 2001 and on August 21, 2001. Baosteel invested 18.9 million USD in Baovale---a joint venture with CVRD. Baovale started operation on April 11, 2002. The annual production capacity of Baovale venture would reach 6 million tons of high quality iron ore. Baosteel on January 30, 2004 signed a US$2.5 billion contract with CVRD in Shanghai to establish a steel plant in Brazil's St. Louis. The venture is expected to produce at least 3.7 million tons of steel plates annually. Output could eventually rise to 7.5 million tons. Gree Gree do Brasil established an air-conditioning plant in Manaus with US$ 40 million investments, US$ 20 million among which invested by Gree based in Zhuhai, Guangdong Province China, and the rest joint funded by the loan granted by Brazilian Development Bank (BNDES) and Amazon Bank (BASA). The plant will provide 600 jobs and is expected to produce 20,000 sets of air-conditioning. The production in 2001 is 40,000 and 80,000 in 2002. The 20 per cent of the production will be exported to Mercosul. Huawei Huawei based in Shenzhen, Guangdong Province in China has decided to invest 650 million

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US$ in three years span in Brazil to produce telecommunication equipment (infrastructure for mobile phone). Brazilian Investments in China According to the Ministry of Commerce (MOFCOM), by the end of 2005 Brazil established 384 joint ventures in China, and Brazilian side invested 144.3 million US dollars (actual invested amount). Embraco Snowflake Compressor Co. Ltd. Embraco and Snowflake Group joint venture Embraco established a joint venture in 1995 with China's Snowflake Group, which operates in the household appliance sector. The Embraco Snowflake Compressor Company Ltd. is located in Beijing. The total investment of the plant is 53.75 million US dollars, 26.73 million from Brazil. Yongcheng Coal Plant CVRD and Baosteel joint venture The venture established in November, 2004 was based on Baosteel's existing coal joint venture with Yongcheng Coal and Electricity Group Corp in Henan Province and a number of other Chinese steel firms including Wuhan Iron and Steel Corp, Ma'anshan Iron and Steel Corp and Shagang Group. Investment in the new venture reached more than 1 billion yuan (US$120 million), of which CVRD will control a stake of over 25 per cent. The joint venture will give priority to supply of coal to CVRD and Baosteel, according to Baosteel's statement. Yankuang Coking Coal and Coal Plant CVRD and Yankuang joint venture In July, 2004, CVRD signed a contract with Yankuang Group in Shandong Province to establish a joint venture producing coking coal and coal. CVRD investment in the venture was 26 million US dollars. WEG Nantong Electric Motor Manufacturing WEG solely owned enterprise in China In April, 2005 WEG and the Chinese Group Weifu signed a contract to transfer ownership of Nantong Electric Motor Manufacturing (with initial investment of 18 million US dollars). The

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company, WEG Nantong Electric Motor Manufacturing, is the first WEG factory in the Asian continent, which produces LV and HV three phase electric motors dedicated largely to the steel, mining, chemical and petrochemical segments and also the pump and compressor manufacturers. WEG Nantong Electric Motor Manufacturing is located in an Economical Development Zone of Jiangsu Province, 155 miles away from Shangai, one of the main cities of China. The company is located near the largest consumption market in China in an area with high availability of qualified labour already accustomed to the foreign capital presence. Harbin Embraer Aircraft Industry Company Ltd. Embraer and AVIC II joint venture Embraer signed on December 2, 2002 an agreement to building a production unit in China through a joint venture with Harbin Aircraft Industry (Group) Co. Ltd. and Hafei Aviation Industry Co. Ltd. –companies controlled by China Aviation Industry Corp. II (AVICII). Harbin Embraer Aircraft Industry Company Ltd, located in Harbin, the capital of Liaoning, the northeastern province, is responsible for the manufacturing, assembly, sales and after-sale support for the ERJ135/140/145 family aircraft. The equity investment in the joint venture will be of 25 million US dollars, 51% of which controlled by Embraer (around 12.75 million US dollars). 4. Main economic agreements involving Brazil

• Comunicado Conjunto sobre o Estabelecimento de Relações Diplomáticas. (Entrada em vigor 15/08/1974)

• Acordo de Comércio (Entrada em vigor 22/11/1978)

• Convênio sobre Transportes Marítimos (Entrada em vigor 30/10/1980)

• Protocolo Adicional ao Acordo de Comércio. (Entrada em vigor 29/05/1984)

• Memorando sobre Cooperação em Matéria Siderúrgica. (Entrada em vigor

13/11/1984)

• Protocolo de Cooperação em Matéria de Siderurgia. (Entrada em vigor 01/11/1985)

• Memorado de Entendimento sobre Minério de Ferro. (Entrada em vigor 18/05/1990)

• Protocolo de Intenções sobre o Incremento do Comércio Bilateral de Minério de Ferro e a Promoção da Exploração Conjunta de Reservas de Minério de Ferro. (Entrada em vigor 23/11/1993)

• Acordo sobre Serviços Aéreos. (Entrada em vigor 27/11/1997)

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• Acordo sobre Quarentena Vegetal. (Entrada em vigor 03/07/1997)

• Acordo sobre Cooperação em Matéria de Quarentena e Saúde Animal. (Entrada em

vigor 03/03/1998)

• Memorando de Entendimeno sobre Cooperação Industrial entre o MDIC do Brasil e a SDPC da China. (Entrada em vigor 02/12/2002)

• Memorando de Entendimento na Área de Segurança Sanitária e Fitossanitária de

Produtos Alimentares. (Entrada em vigor 24/05/2004)

• Acordo, p.t.n., para Flexibilização da Concessão de Vistos para Empresários. (Entrada em vigor 24/06/2004)

• Memorando de Entendimento sobre o Estabelecimento da Comissão Sino-Brasileira

de Alto Nível de Concertação e Cooperação (Entrada em vigor 12/07/2004)

• Protocolo sobre Quarentena e Condições Sanitárias e Veterinárias de Carne de Aves a ser Exportada do Brasil para a República Popular da China (Entrada em vigor 12/11/2004)

• Protocolo sobre Quarentena e Condições Sanitárias e Veterinárias de Carne Bovina a

ser Exportada do Brasil para a República Popular da China (Entrada em vigor 12/11/2004)

• Memorando de Entendimento sobre Cooperação em Matéria de Comércio e

Investimento (Entrada em vigor 12/11/2004)

• Memorando de Entendimento em Cooperação Industrial (Entrada em vigor 30/9/2005)

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V MARKET ACCESS 1 Tariff system Tariff imposed on goods brought into China include import duties, consumption tax, and VAT. China also imposes anti-dumping duties on foreign imports if authorities consider theses to be sold too cheaply. Import rates are set by General Administration of Customs (GAC) and approved by the Customs Tariff Commission, directly under the State Council. The commission consists of members from the Ministry of Finance, the Ministry of Commerce. Both the GAC and the Customs Tariff Commission follow the Custom Law in formulating policy. Tariff rates are published by the General Administration of Customs in the Customs Import tariff Schedule. The schedule conforms to the International Customs Co-operation Nomenclature (ICCN) system. The “Regulations on Import Tariff”, most recently amended in March 1992, govern tariff matters including general rules, tariff rate application guidelines, base prices for tariff calculations, tax payments and refunds, tariff reductions and exemptions, review and approval procedures, appeals procedures, and penalty rules.

In recent years, China has, in line with international practice, relied on tariffs for the administration of trade policy rather than on quotas and licenses. At the same time it has reduced tariffs significantly.

Subsequent to China’s entry into the World Trade Organization (WTO), the government has taken measures to readjust its import tariff to comply with its WTO commitments. Effective January 1, 2002, China reduced its import tariffs on approximately 5,300 items from an average level of 15.3% to 12%. In particular, the average tariff for industrial products dropped from 14.7% to 11.3%, and that for agricultural produce dropped from 18.8% to 15.8%. At the same time, China eliminated its import quotas for a number of items such as grain, wool, cotton, polyester fiber, acrylic fiber and fertilizer. Effective January 1, 2003, China further reduced its import tariffs on approximately 3,000 items, and lowered the average tariff level from 12% to 11%. Effective January 1, 2004, China reduced its import tariff on approximately 2,414 items and lowered the average tariff level from 11% to 10.4%. Effective January 1, 2005, China reduced its import tariff on approximately 980 items and lowered the average tariff level from 10.4% to 9.9%.

Effective January 1, 2006, China reduced its import tariff for over 100 categories of products ranging from vegetable oil to vehicles. After the adjustments, the average tariff rate on imports in China was 9.9 per cent. Average import tariff for industrial products was 9 per cent,

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while the average tariff for agricultural products was 15.2 per cent, down from 15.3 per cent in the previous year.

China will continue to adjust its import quotas and tariffs in compliance with its WTO commitments.

Besides WTO commitments, some of the tariff reductions are a result of bilateral or multilateral agreements concerning trade and tariffs.

Import tariffs on all products from the Association of South East Asian Nation, on the so-called "early harvest" list, will be completely eliminated in 2006. This scheme is a preferential tariff program to promote the region's Free Trade Agreement.

Tariffs on all products imported from Hong Kong and Macao will also be lifted next year, according to stipulations in the Closer Economic Partnership Arrangement (CEPA).

Preferential tariffs will be implemented on 2,244 items from Pakistan, in line with an agreement the two countries signed earlier this month. Agreed import tariffs will be implemented on 928 items form South Korea, India, Bangladesh, Laos and Sri Lanka, according to the Asia Pacific Free Trade Agreement.

Import duties Import duties are calculated as a percentage of the CIF (cost insurance freight) price of the goods. However, in a few cases duties are calculated on other bases, such as volume. China provides a preferential rate, which applies to WTO member countries such as Brazil and economies that have bilateral favorable tariff treatment agreements with China. Consumption tax Consumption tax, ranging from 3-45%, is essentially a tax on luxury goods; alcoholic beverages and cigarettes; cosmetics, skin-and hair-care products; fire-crackers and fireworks; jewellery; automobiles, motorcycles, and motor vehicle tyres; diesel fuel and petroleum. The Chinese Finance Department and State Administration of Taxation issued a joint Circular on 21 March 2006 (Circular Caishui [2006] No 33), which makes significant amendments to the Consumption Tax (CT). The changes, which become effective April 1, 2006, relate in particular to taxable items, tax rates and policies. These changes are the most significant amendments made to the CT since the tax was introduced in 1994. The amendments affect a number of items in two categories subject to CT: resources and luxury products, with the explicit aim of improving environmental protection and resource conservation.

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Five taxable items are added to the category of industrial oil: naphtha, menstruum oil, fuel oil, aviation kerosene and lubricating oil. Disposable wooden chopsticks and solid wood floor boards also are added as taxable items. To ensure reasonable consumption and to indirectly reallocate revenue, luxury products, such as golf balls, golf instruments, luxury watches and yachts are included as taxable items, while skin-care and hair-care products are removed from the list of taxable items. The amendments also increase CT rates for energy-consuming cars and vans with large cylinder capacities, while decreasing CT rates for cars with small cylinder capacities with a view to encouraging the manufacturing and use of energy-efficient cars. Value added tax VAT is currently levied on all imports, including imported inputs on goods destined for export. Most goods are subjected to a 17% VAT, though the following goods are only subject to 13% VAT: • Food and edible vegetable oil; • Drinking water; • Heating, natural gas, coal gas, liquefied petroleum gas (LPG); • Books, newspapers and magazines (these have a sliding tariff on import duties); • Fodder, chemical fertilizer, pesticides, agricultural machinery, agricultural plastic sheeting. Companies can apply for 9% rebates on exported products subject to 17% VAT, and 6% rebates on goods subject to the 13% VAT. Textiles attract a more generous rebates of 11%. Obtain Tariffs Information In January 2002, the government set up a WTO information service desk and a WTO information service website providing WTO-related information to the public. Customs Import and Export Tariff of the People’s Republic of China (2006 Version)

Decade Coding of HS, Customs Control Conditions, Detailed Customs Duties Levied on Commission Basis Compiled by the editorial department of the Customs Import and Export Tariff of the People’s Republic of China Published by Economic Science Publishing House Address: No. 28 A, Fucheng Road, Haidian District, Beijing 100036 China Tel: 008610-88191217 Fax: 008610-88191540 E-mail: [email protected]: RMB 260 (US$ 33) China WTO Notification and Enquiry Center, Ministry of Commerce

Address: 2, Dong Chang An Street, Beijing 100731 China Tel: 008610-65197340 Fax: 008610-65197340

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mailto:[email protected]


www.chinawto.gov.cn Other tariffs and levies on imports Trade obligations under WTO China’s most significant tariff reductions have been in the following sectors: • The pre-WTO average tariff of 10.3% on steel and steel products was reduced to 6.1% on

January 1st 2003; • The pre-WTO average tariff on textiles and clothing of 25.4% was reduced to 11% on January

1st 2005; • Tariffs on automobiles are being steadily reduced from 100% and 80% to 25% by July 1st

2006; the average tariff on automobile components will be phased down from 23.4% to 10% during that time; automobile quotas were eliminated by 2005.

• The average tariff on civil aircraft was slashed from 14.7% to 8% on January 1st 2002; quotas

and licenses were eliminated for all items in the Agreement on trade in Civil Aircraft; • The average tariff on agricultural equipment was reduced from 11.5% to 5.7% on January 1st

2002. Some high priority products were reduced to 3% or 4%; • The average tariff on chemicals was cut from 14.7% to 6.9% on January 1st 2005; quotas were

eliminated in 2002; • The average tariff on construction equipment of 13.6% was reduced to 6.4% on January 1st

2004; • Tariffs on cosmetics (usually 45%) was reduced to 10% or 15% in 2004, with some items in

2005; • Tariffs on furniture (averaging 22%) were eliminated on January 1st 2005; • China reduced tariffs on scientific equipment from its pre-WTO average tariff of 12.3% to

6.5%, and tariffs on medical equipment were cut from 9.9% to 4.7%. All quotas on medical equipment were eliminated. The average tariff on pharmaceuticals of 60% was cut to 4.2% on January 1st 2003;

• China signed the Information Technology Agreement (ITA) on accession to the WTO; tariffs

on information technology products were accordingly eliminated on January 1st 2005; quotas on information technology products were eliminated on accession to the WTO;

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Tariffs on alcoholic spirits were reduced from 65% to 10% in 2005. 2 Import regulation General regulation With its vast population and rising living standards, China’s economy is increasingly driven by domestic demand, rather than by export processing. China is an important import market ever since it adopted the reform and opening-up policies in 1978.

In 1978, China's imports stood at 10.9 billion dollars. The figure rose to 660 billion dollars in 2005, making China the world's third largest importer after the United States and Germany.

Between 2001 and 2005, China's accumulated import volume surpassed 2 trillion dollars.

Between 2006 and 2010, the country's imports are expected to exceed 4 trillion U.S. dollars. China would typically boost the imports of advanced technologies, turn-key equipment and resources the country badly need -- in line with industrial policies and economic growth demand -- such as computer equipment and agro-products, as well as airplanes Composition of imports China’s imports consist chiefly of capital goods and key industrial raw materials (yarns and fabrics, plastics, metals, fuel, chemicals and pulp and paper). With lower tariffs and higher disposable income, imports of consumer goods should increase rapidly. Agricultural imports fluctuate quite widely from year to year due to phytosanitary issues as well as other government policy-related issues. China enforces import restrictions by • Issuing import licenses; • Imposing quota controls; • Requiring safety, quality and health licenses.

Licensing The administration of import licenses is governed by the Ministry of Commerce’s “Notice on the application of import licenses”. Such licenses are, unless otherwise stated, valid for one year. A three-month extension can be obtained upon request. In order to bring in goods that do require import licenses, companies must obtain approval from various agencies include the Ministry of Commerce or its regional branches; the National Development and Reform Commission; the Coordinating Office for Imports of Machinery and

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Electronic products. Each of these agencies has jurisdiction over different sets of good. To improve transparency under WTO rules, China has agreed to publish and regularly update changes on trade measures, licensing, authorizations and so in its Gazette sponsored by the Ministry of Commerce (MOFCOM) and MOFCOM web page (www.mofcom.gov.cn). Items requiring an import license (a short list of item which influence Brazilian exports to China) • Acrylic fibre • Air conditioners and compressors • Grain • Motor vehicles and key parts • Natural Rubber • Polyester fibre • Polyester fillet • Sugar • Tobacco and tobacco products • Vegetable oil • Vehicle tyres • Wine Restrictions or quotas Products subject to import quotas in China are those that are deemed by the central government to inhibit domestic industry. While China has eliminated quota and license restrictions on thousands of products, some of these may now be subject to new tender procedures. Some imports restricted by license also restricted by quota. Import quotas now apply to only nine categories of general commodities and machinery and electronic products. The national development and Reform Commission (NDRC) sets annual import quotas for general commodities, especially agricultural products. Quotas for machinery and electronic products are set and allocated by the Ministry of Commerce (MOFCOM) and Machinery and Electronic Products Import Office. Enterprises granted quota certificates by one of these agencies can then apply for import licenses from MOFCOM. China has agreed to phase out import quotas on most of its restricted products following its accession to the WTO. All remaining restrictions are to be phased out following accession unless they are justified under WTO rules. Agricultural issues Agricultural imports of “staples” such as corn, wheat, soybeans and soybean oil, and rice are subject to quota provisions, and are usually traded through quota allocations to specific trading companies.

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Anti-dumping measures and compensatory rights China has long faced accusations of dumping goods in foreign markets – for example selling them below production costs. In late 1996, “Provisional Measures for Punishment of Low - Cost Exports” was issued and industry-specific chambers of commerce set the prices for Chinese exports. Such price-fixing successfully reduced dumping charges. China also brought in retaliatory measures, most notably in March 1997, when the State Council issued the Anti-Dumping and Anti-Subsidy law, which enabled the Ministry of Commerce (MOFCOM) to conduct anti-dumpling investigations against other countries’ producers. In December 1997, China’s first-ever anti-dumping investigation was initiated against news print exporters from the U. S., Canada and South Korea who were dumping their products at below - market prices in China. China has signed agreements with Brazil, South Korea, and Argentina to set up bilateral communication systems on the issue. Safeguards The issue of safeguards is related to that of anti-dumping, in that both are attempts to ensure fair and transparent rules of competition. Safeguards refer to the imposition of temporary quotas to prevent the serious disruption of trade as a result of an import surge from other WTO members. China agreed to a supplementary agreement on safeguards as a condition of its accession. The State Council issued “Regulations on Safeguards”, effective January 1st 2002, under which MOFCOM is responsible for determining whether there is any link between increased imports (in a particular sector) and adverse impact to that specific domestic sector. Washington’s move in march 2002 to slap tariffs of 8-30% on steel imported into the US triggered vigorous protests from steel producing countries, including the European Union, Japan, South Korea and China, and set off a series of retaliatory tariff increases. China, which was set to reduce steel import tariffs to an average 6.1%, effective January 1st 2003, responded in may 2002 to US move with its first safeguard investigation into the import of 17 categories of steel products. It also imposed temporary import duties on nine steel categories – which were later reduced to five in November 2002. MOFCOM announced that additional tariffs of 10.3% to 23.2% were to be imposed until May 2005 on five steel categories as cold-rolled thin plates, hot-rolled thin plates, cold-rolled stainless steel, pre-coated galvanized steel and non-grain-oriented silicon steel. The measures so far have not influenced Brazilian export to China the above-mentioned products. WTO trade dispute mechanisms China is entitled to make full use of trade dispute mechanisms within the WTO framework, but it will likely seek bilateral negotiations when it views them as more advantageous.

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Most serious agricultural trading disputes revolved around sanitary and phytosanitary (hygiene) issues, and genetically modified crops. Phytosanitary issues frequently arise in agricultural trade disputes, even though WTO regulations require that phytosanitary trade barriers must be supported by solid scientific evidence. There were claims and counterclaims by trading nations of “safe” agricultural production practices throughout 2002, and several cases are still pending resolution. China enacted a series of tough regulations on genetically modified crop (as had Japan and the EU). The immediate target were soybeans from South America and the US, which are use genetically modified seeds. Foreign exchange regime

On July 17th 2005, China replaced its 11-year-old peg to the US dollar, with a floating exchange-rate regime tied to a basket of currencies. The move resulted in a 2% appreciation in the yuan exchange rate to US$1:Rmb8.11. On each trading day, the yuan is allowed to appreciate or depreciate by a maximum of 0.3%. By early 2006, the yuan had strengthened to around Rmb8.06.

The currency revaluation was made after months of intense debate within the Chinese government and mounting pressure from disgruntled trading partners, especially the US. On August 9th 2005, the People’s Bank of China (PBOC, the central bank) announced that the basket would contain at least 11 currencies, including the US dollar, Japanese yen, the Euro and the Korean won. However, it declined to give a weighting for each. The basket is likely to be heavily weighted towards the greenback, which is the main currency of its foreign trade.

Import payments The usual terms of payment on Chinese trade contracts are 10% down payment, 75% on shipment, 10% on arrival or acceptance, and 5% at the end of the guarantee. Another commonly accepted formula is 10% down, 80% on shipment, and 10% on final acceptance. Because of difficulties often encountered in collecting the final payment, may foreign sellers insist on 10% down and 90% on shipment. Other accept the basic payment schedule, but adjust their price upward so that failure to collect the final 5% payment would not incur a loss. Imports by domestic companies are usually facilitated by a L/C opened by the purchaser through a domestic bank in favor of the foreign supplier. While large companies have no trouble obtaining L/Cs, it may be difficult for many small and medium-sized companies to get the financing they need as the large state banks tend to lend according to more rigorous criteria. In the past, the Bank of China (BOC) held a dominant position in China’s foreign trade finance business, maintaining a virtual monopoly on the L/C business for Chinese companies. However, China’s other main banks have now become much more active in financing trade deals. Apart

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from BOC, 15 designated foreign exchange banks have the authority to issue L/C. They include: China Construction Bank (CCB), Agricultural Bank of China (ABC), Industrial and Commercial Bank of China (ICBC), the Bank of Communications, CITIC Bank, Hua Xia Bank, China Everbright Bank, China Minsheng Bank and China Mercant Bank. China Eximbank, the policy bank charged with facilitating Chinese exports, also offers buyers credit. In addition, foreign banks commonly offer trade-finance facilities through their branches in China, and in fact the provision of trade financing facilities has become one of the most important sources of business for the majority of foreign banks active in China. While most of this business is issuing L/Cs redeemable from their own banks, as a sideline business foreign banks also issue stand-by L/Cs, guaranteeing domestic banks that they will receive payment for the trade facilities they offer the foreign banks’ clients. Chinese buyers will usually try to argue for opening the L/C just 30 days before shipment, but a longer period is advisable to ensure that cash will really be available for payment on delivery. Credit terms longer than 90 days can be a problem for Chinese companies since they must gain approval for such loans from the State Administration for Foreign Exchange (SAFE). L/Cs for Chinese imports are payable only at the bank branch which has opened the L/C. Generally, foreign vendors entrust their banks to collect these payments on their behalf. Payment generally occurs five days after receipt of shipping documentation, which should include: • Bill of lading; • Invoice; • Certificate of origin; • Packing list; • Delivery note; • Certificate of inspection (or quarantine), if such a clause has been added Foreign vendors can get stuck if the L/C agreement includes a (routine) clause stating that the bank may release funds only after the goods have cleared customs. A Chinese buyer who has not been able to find the necessary foreign exchange may then simply refuse to initiate customs clearance procedures. Importers may also refuse to initiate the procedures because, in time between closing the deal and arrival of the goods, the goods have dropped in price. Chinese importers often use the following excuses to block customs clearance: Quality differences (such as one carton being missing), which would mean the packing list is “incorrect”; Shipment delays; there have been instances were shipments delayed for one day are turned back; Re-routing of the vessel; companies have turned back orders on the argument that there is an unexpected stop on the itinerary, so it must not be their shipment. Under Chinese contract law, if goods delivered are damaged or otherwise fail to meet the quality standards agreed upon in the sales contract, the purchaser can reject the goods, and the loss must

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be borne by the seller. In the event that goods are turned back, the foreign seller must eight scramble to find another buyer for the goods before warehousing charges become prohibitive, or be force to ship the goods back home, if he can get them out. Particularly in the latter case, “quality deficiencies” may be asserted in order to extract reduced contract payments. 3 Documents and formal procedures Shipment (from Brazil) Export Procedures for Brazilian Enterprises Export procedures related to the licens1ng of trade operations, to customs clearances operations and to exchange rate controls. The Foreign Trade Secretariat (SECEX) of the Ministry of Development, Industry and Foreign Trade (MDIC) is responsible for licensing of import operations, which is carried out by its Department of Trade Operations. Licensing is an operation accomplished in the Integrated System of Foreign Trade (SISCOMEX). The SISCOMEX constitutes an administrative process, which integrates the activities of the Foreign Trade Secretariat, the Federal Revenue Secretariat and Brazil’s Central Bank (BACEN). It follows up and controls the several stages of export operations, taking 1nto account the respective spheres of competence. The SISCOMEX can be accessed from my point connected to it (banks, brokers, customhouse clerks, or the users’ own enterprise). To access the system, companies must be registered at REI -Register of Exporters. In order to register, the company, connected to the SISCOMEX system, must inform its identification number (CGC) or the identification number of the person responsible for the company (CIC). Export Competent authorities Foreign Trade Commission is the top foreign trade policy-making body in Brazil. Brazilian Export Credit and Credit Security Committee under the Foreign Trade Commission serves to speed up the release of loans and promote export. Export promotion The primary focus of international market development activities is branded promotions. No direct government funds are provided to commodity groups. Also, because of the high

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concentration of a few firms in the processing of a given agricultural product, foreign market development activities are basically restricted to large food companies and industrial groups with vast interests in the agricultural sector. Major exceptions are for small companies which are supported by SEBRAE, a quasi-government organization responsible for assisting small and medium-size companies. Total government funding for export promotion is $240,000. Private sector market promotion funding is $1.3 million. SEBRAE pays small business expenses to international trade shows; and offers short-term loans to companies at subsidized interest rates for market promotion. Funding for SEBRAE's export market promotions is estimated to be $240,000 in 1996. The Bank of Brazil also subsidizes interest rates for financing pavilions at trade shows. The Ministry of Foreign Affairs generally provides only logistic support at Brazilian Embassies and Consulates for trade shows and trade teams. Major Brazilian market development organizations include the Association of Brazilian Oilseed Crushers (ABIOVE), the Association of Brazilian Poultry Exporters (ABEF), the Association of Brazilian Pork Exporters (ABECS), the Association of Brazilian Beef Exporters (ABIEC), the Association of Brazilian Citrus Processors (ABECITRUS), the Brazilian Association of Food Industry, the Brazilian Association of Supermarkets, and the four forest products organizations (the Association of Amazon Wood Exporters, the Association of Brazilian Plywood Industry, the Association of Brazilian Wood Producers, and the Brazilian Silviculture Society). These organizations act as advocates on trade matters to the Brazilian government and conduct basic market development activities such as trade newsletters, educational seminars, and trade missions. However, their member companies conduct brand promotions in overseas markets. Private sector funding totaled $1.3 million. Export subsidies The Government of Brazil offers a variety of tax, tariff, and financing incentives to encourage production for export and the use of Brazilian made inputs in domestic production. For example, Brazil’s National Bank for Economic and Social Development (BNDES) provides long-term financing to Brazilian industries. The interest rates charged on this financing are generally lower than the interest rates on alternative domestic financing. BNDES provides capital financing to Brazilian companies for, among other things, expansion and modernization projects as well as acquisition or leasing of new machinery and equipment. The goal is to support the purchase of domestic over imported equipment and machinery. SISCOMEX Export Procedures (Licensing) Export Register – RE Export licensing through SISCOMEX is carried out by filling up the Export Registration Form (RE).

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The RE comprises trade, fiscal, exchange rate information that characterizes the export operation of goods and defines which tream1ent to be received. In general, registers are automatically validated by SISCOMEX. Goods subjected to special procedures or that have suffered any export contingency, suspension, or prohibition, due to changes m legislation or to international compromises Brazil have assumed, must go through administrative formalities at SECEX or at my other government representation (such as, Army Ministry, IBAMA). The administrative treatment given to these goods is stated on Annex “C”, of SECEX Decree no 2, dated 12/24/92. Export Registers, whose term of shipment is of 60 days can be altered priory or after getting through customs. Credit Operations Register – RC Financed exports, of which payment term exceeds 180 days must have a credit operation form (RC) filled in before the RE form. RC forms, once filled in, must have the approval of: (a) “Banco do Brasil S/A”, (Bank of Brazil) for operations supported by “PROEX”, (export program) or (b) DECEX (Department of Foreign trade), in the case of financed export operations. RC establishes a term for shipment, therefore all export registers and requests concerning customs clearance must respect this term. Sale Register – RV For commodities and stock in trade the Sale Register form must be filled in before the RE. The RV comprises information which characterizes the sale apparatus of commodities or products traded m stock exchanges. Export Documents Documents to be attached to export operations are listed m Annex “D” of SECEX Decree no.2, dated 12/24/92,as follows: Certificate of Origin-ALADI, Certificate of Origin-MERCOSUR, Textile-Export Licensing for the European Community, Certificate of Tobacco Authenticity, invoice, Certificate of Origin –SGP (form A) and others. Customs clearance (in China)

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Customs regime in China The Customs Law of 1987 was amended in 2000 and 2002 so that Chinese customs procedures would be in compliance with WTO provisions for the valuation of imported goods. The administrative bodies involved in enforcing customs law include: General Administration of Customs (GAC www.customs.gov.cn), which controls the import of goods, collects duties and fees, and compiles trade statistics. It is also empowered to conduct anti-smuggling activities, backed by a specialist police force. GAC now operates about 300 ports of entry, roughly half of which are in Guangdong province. Ministry of Commerce (MOFCOM www.mofcom.gov.cn), which administrates the import licensing, and quota system. It has established the WTO Notification and Consultation Bureau to deal with China’s WTO matters. State Councils’ Customs Tariff Commission, which sets import tariff rates. It is chaired by the minister of finance and includes the chief of GAC and MOFCOM. General Administration of Quality Supervision Inspection and Quarantine (AQSIQ www.aqsiq.gov.cn), which oversees the inspection, quarantine and required technical standard of goods for import. Certification and Accreditation Administration (CNCA www.cnca.gov.cn), which has a duty to unify administration, supervision and co-ordination for certification and accreditation, and the creation of national standards in China in accordance with WTO rules. CNCA has a wide brief covering a large range of industry sectors as: • Rules and regulations relating to national certification, accreditation, safety licenses, hygiene

registration and conformity assessment; • Catalog products subject to compulsory certification and safety licenses; • Hygiene registration assessment of manufacturing and processing plants of import food and

cosmetics, and responsibility for the overseas registration notification of manufacturing plants;

• Responsibility for the certification of calibration, testing and inspection laboratories; • Responsibility for the assessment of the accreditation of laboratories involved in entry

inspection, quarantine and safety supervision; • Working with the MOFCOM and with the State Administration for Industry and Commerce

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http://www.customs.gov.cn/


http://www.aqsiq.gov.cn/

http://www.cnca.gov.cn/


(SAIC) to regulate the operations of certification bodies, testing bodies, and inspection bodies from other countries and regions;

• Representing China on international and regional bodies. Customs clearance Customs clearance remains a major headache for foreign companies conducting trade with China. Specific WTO-related customs issues include the following: Variable evaluation methods If declared customs values are seen as less than ”reference prices” for the item on Customs databases, Chinese customs officials will arbitrarily raise the value, or may require a deposit to ”uplift” the price. Time Customs clearance can take from two days to two months, depending on the type of goods and more importantly the importer’s relationship with the customs house; some ports are also faster than others. Unpredictable inspections If GAC officials decide, as they occasionally do, that they must inspect every item in a shipment, clearance can take many days longer than normal. Difficulty in importing unusual (but lawful) goods Sometimes when GAC officials are confronted with a case of unfamiliar goods they will detain it for weeks or months until they figure out what it is; it is crucial when exporting a new type of goods to choose a commodity designation (HS code) that does not arouse suspicion. Documentation Documentation normally handled by the Chinese buyer. Documentation requirements are quite specific and often complex; any defect in documentation could cause the GAC to refuse to clear the goods; buyers have been known to instruct the GAT to turn back unwanted goods on the excuse of invalid documentation. Valuation of goods The GAC imposes a minimum import value for a number of products. In theory, tariffs are to be

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assessed on the CIF price of imported goods. GAC valuations tend to go up when tariff rates drop, thus negating the impact of the tariff cuts in many cases. Each customs house has its own assumed range of values for different though importers believe that GAC publishes an internal list valid for the whole country. Regional variation GAC offices vary widely in their degree of enforcement. Brazilian exporters should get information from the local partner on the most appropriate port of entry; this decision may also depend on the local partner’s relation with a particular GAC office. Declaration GAC must be notified in advance of the arrival of any vessel, vehicle or aircraft in China; imports must be declared by the consignee at the GAC office at the place of entry within 14 days of arrival. If an import license is required, the license should be submitted to the GAC at the time of declaration. Inspection In principle, all goods imported into China are subject to inspection. GAC officials may inspect all goods to determine whether the value of goods has been accurately declared. A large number of imports are subject to mandatory inspection by AQSIQ for health, safety and quality assurance. In practice, however, most goods entering China do not undergo physical inspection, especially if the importer has established good relations with the customs houses it uses. Customs inspections Customs inspections are composed of two parts: direct inspection of goods at port of entry, and post-clearance inspections, which verify customs declarations by checking them against companies’ financial records. Sales or transport contracts may specify a particular port or site for inspection. Inspection of bulk goods must be conducted at the port of entry. Inspection can be conducted at the consignee’s place of business if the inspection can only be done after the equipment is installed, or if the packaging cannot be restored because it was opened at the port of arrival. Health, safety and quality inspections AQSIQ drafts laws and regulations governing the inspection and required standard of imports. The Ministry of Public health and State Environmental Protection Administration (SEPA) also attach their own requirements to certain categories of imported goods.

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AQSIQ or its local bureaus (CIQs) are responsible for conducting inspections. Once goods subject to quality inspections arrive in port, the Chinese consignee (usually the shipping or customs clearance agent) must register with the inspection authority of the port. Upon completion of registration, the consignee must present the local AQSIQ branch (CIQ) with: • Bill of lading • Invoice • Shipping list • Sales contract • Import quota certificate (where applicable) • Import license (where applicable) • Insurance policy • Customs declaration form The AQSIQ will then perform the inspections, assessing whether the goods meet the quality standards specified in the sales contract. These standards must be at least as strict as national standards. If the goods pass muster, the AQSIQ will issue an inspection certificate. While failure of these quality inspections may not be used as grounds to block entry of the goods, purchasers may cite the failure as justification for refusing to pay for the goods. Additional applications must be filed if vessel-storage rooms and containers are to be used for perishable or frozen food, in which case suitability tests for sanitation, hygiene, refrigeration and sealing are required. Inspection fees are charged for every shipment. Charges vary, depending on the volume of goods, the total contract value and complexity of the inspection. The fee includes health and quarantine charges. The fees are about 0.5% of the total contract value. Companies abroad should apply to the AQSIQ well in advance for quality and safety licenses. The process generally takes 60 days. Should items fail the test when they arrive in port, AQSIQ may either alter the goods, return the goods to the consignor or destroy the goods altogether. After the AQSIQ has issued the license, an import permit will be issued. Quarantine inspection Restrictions on the import of most animal and vegetable food products are tight, put in place to protect domestic agriculture. All animals and plants as well as animal and plant products permitted into China are subject to quarantine inspection by the AQSIQ. The consignor of animal and plant products destined for China must submit an application for

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import permit to the Department for Supervision on Animals and Plant Quarantine at AQSIQ in Beijing in advance. Upon arrival in China, the goods must undergo hygiene inspections. Depending on the product and where it is to be consumed, the inspection can take place at either the quarantine office at the border or the provincial quarantine bureau. As with quality inspections on other imports, the quality standards for food and animal imports must be specified in the accompanying sales contract, and must be at lease as strict as China’s national standards. Brazil and China has fruitful cooperation in the quarantine inspection sector. Memorandum of Understanding between the Ministry of Agriculture, Livestock and Food Supply of Brazil (MAPA) and the General Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ) in the Field of Sanitary and Phytosanitary Safety of Food Products was signed in May in 2004. In the same year, two protocols namely, the Protocol between MAPA and AQSIQ on Quarantine and Veterinary Sanitary Conditions of De-boned Beef to be Exported from Brazil to China and the Protocol between MAPA and AQSIQ on Quarantine and Veterinary Sanitary Conditions of Poultry Meat to be Exported from Brazil to China were also been signed. By June 2006, 3 Brazilian beef plants and 24 Brazilian poultry plants have been registered with Certification and Accreditation Administration of China (CNCA) Labeling and marking requirements Chinese safety and product-quality standards require certain imported commodities be inspected and certified to comply with compulsory national standards. All products, which have received the quality certificate and are sold in China must be marked with relevant product information in the Chinese language. Importers are charged US$0.50-0.60 per sticker, which must be affixed under an AQSIQ-authorized mark. Customs benefits of boned zones China’s 15 free trade or boned zones offer significant customs benefits to companies operating there. All machinery, equipment, building materials, parts and components, and raw materials may enter duty-free. Customs clearance for these goods is relatively fast. It is also permissible to transfer goods from one boned area to another without paying duties or VAT. This is an interesting option for companies wanting to label, sort or pack their goods, or to keep stock in China. The delivery time to customs in China can be shortened and it is possible to offer more after-sales support. Goods processed in the boned zones and then re-export are exempt from export duties and VAT. However, goods destined for inland markets must be re-imported through regular channels, and are subject to regular duties. 4 Special regimes Quarantine of transit animals and plants

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Performing procedures: 1. Declare all transit animals and plants, animal products and plant products, as well as other quarantine goods that arrive at the entry ports of China and are transited through China to a third country. On the goods’ arrival at China’s entry port, the carrier or supercargo or consigned agent should declare, with his Delivery Bill and Quarantine Certificate on animals and plants issued by Quarantine Institution of the exported country or local government, to the Entry-Exit Inspection and Quarantine Institution at the entry port such things as commodity name of transited animals and plants, animal products and plant products or other quarantine goods, quantity, origin, exported country or region, imported country or region, transit route, port, packing mode and packing materials, matting or filling. The consignor or his agent who asks for transiting animals should obtain beforehand approval from General Administration of Quality Supervision Inspection and Quarantine before he transits animals per assigned ports and routes. The carrier should declare to Entry & Exit Inspection and Quarantine Institution for transiting containers with plants, plant products or other quarantine goods from epidemic areas. 2. Quarantine (1) As for those transited by original conveyance, inspection should be made on whether the surface of conveyance (or loading containers) is broken or leak, whether it clings those harmful organisms, such as soil, pests and weeds, etc. (2) As for those transited by changing conveyance, an all-round inspection should be made on whether there is leftover and propagating matting of transit quarantine goods on the original conveyance, if the containers and packing of quarantine goods is broken, leak or being infected by pests, weeds or other harmful organisms. (3) Making primary checkup of and recording pests and weeds captured on the spot, the specimens should be put into U-shaped tube for further inspection and checkup. 3. Quarantine Disposal and Discharging (1) Containers, packing and conveyance for transit plants, animal products and plant products and other quarantine goods should be integrated and unleaking. Protective measures should be made on transit animals during the active season of blood-sucking insects. If the Entry & Exit Inspection and Quarantine Institution find the conveyance, packing or containers may leak on midway, the carrier or supercargo should take airproof measures according to the institution’s request; the goods are not allowed to transit if they are not sealed. During the transit period of animal products, nobody is allowed to tear open packing or unload goods from conveyance without Entry & Exit Inspection and Quarantine Institution’s approval. Protective and security measures should be taken during the course of transit.

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(2) Feed and matting materials for transit animals should be unpolluted by pests, otherwise they should be get rid of pests or destroyed. If feed or matting materials are to be added or loaded in China, it should be carried under the supervision of Entry & Exit Inspection and Quarantine Institution at the ports and should accord with sanitation request. The supercargo of transit animals should make harmless disposal of animal carcasses that die in transit, excrement of animals, matting materials and other castoff under the supervision of Entry & Exit Inspection and Quarantine Institution, and should not be disposed without permission. (3) The goods are allowed to pass through if the conveyance and packing of transit plants, animal products and plant products, and other quarantine goods have not been found fatal diseases, pests and weeds after quarantine; if fatal diseases, pests or weeds are found in quarantine, the declarer will be informed to get rid of epidemic things, the goods will be allowed to pass through after the disposal meets standard; if the goods do not comply with quarantine standard as epidemic situation is sever and difficult to get rid of, they are not allowed to pass through. Basis of case: Quarantine Law of the People’s Republic of China on Entry-Exit Animals and Plants, Chapter 2 (Entry Quarantine), Chapter 4 (Transit Quarantine) Implementation Rules of the Quarantine Law of the People’s Republic of China on Entry-Exit Animals and Plants, Chapter 2 (Examination and Approval of Chapter”, Chapter 5 (Transit Quarantine) Rights and liabilities: inspection and quarantine persons carry out the inspection and quarantine on the entry and exit animals/plants in accordance with the law, abide by the work disciplines and fulfill the work flow within the specified timeframe. Cargo owner or its agent shall coordinate in the inspection and quarantine work. Contents of case: things subject to quarantine directly across our country by land; things subject to quarantine which are, after entry, directly transported out of the country by using other transportation means at the port of our country; through things subject to quarantine which enter the country by ship or air and then leave the country with the original transportation means; things subject to quarantine belonging to transit transportation by international containers through Europe-Asia Continent Bridge IMPORTANT NOTE: Updating and supplementation of data contained in this chapter: Trade Information Division – DIC Ministry of Foreign Relations 70.170-900 Brasilia – DF – Brazil Phones: (5561) 411.6390/411.6391 Fax: (5561) 322.1935 Website: http://www.mre.gov.brE-mail: [email protected]

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http://www.dpr.mre.gov.br/



Department for Foreign Trade Operations – DECEX Ministry of Development, Industry and Foreign Trade-MDIC Praça Pio X, 54 – 2° andar sala 202 20.091-040 – Rio de Janeiro – RJ – Brazil Phones: (5521) 3849.1213 and 3849.1211 Fax: (5521) 3849.1180 Website: http://www.mdic.gov.br

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http://www.mict.gov.br/


VI TRADE STRUCTURE 1 General Considerations

The distribution industry in China encompasses retail, distribution, logistics, catering and community services and involves the process of delivering goods and services.

A report, released jointly by the Ministry of Commerce and the Development Research Centre of the State Council on March 31, 2006 predicts that retail sales of consumer goods will exceed 7.5 trillion yuan (US$937.5 billion) in 2006, an increase of 13 per cent. Retail sales of consumer goods grew over 12 per cent year-on-year in 2005 to reach 6.7 trillion yuan (US $837.5 billion).

China has lifted all restrictions on regions, quantity and share ratio for foreign enterprises since December 2004.

Logistic costs in China are much higher than in the US and European Union (EU) due to inadequate transport infrastructure and fragmented distribution networks. China’s commitments under the World trade organization, together with continued investment in infrastructure, will change the sector rapidly in the next 10 years. Logistics firms have been allowed to be wholly foreign-owned since 2004. Third-party logistics providers, who specialise in handling other companies’logistics operations, will control an ever-increasing percentage of the total transport and logistics market in China, though they have to work with smaller, inefficient local distributors. The Pearl River Delta (Hong Kong and Guangdong) accounts for 37% of their revenue in China. This area and the Yangtze River Delta (Shnaghai) will continue to contribute to their main revenue. 2 Distribution channels Domestic wholesalers Historically, distribution companies in China existed at three levels; national, provincial and municipal. In fact, most domestically produced goods bypassed the top two levels of this chaim, and were fed directly from the manufacturer to the local state-owned distributor and on to the consumer. Distributors typically specialised in the products they carried. Rationed goods, such as grain, oil, sugar, cigarettes and liquor, were distrbuted through local monopolies. In many cases the distributors operated both wholesale and retail operations, taking goods from producers at their warehouses and then selling them to consumers at their own retail outlets. In the mid-1990s, these state monopolies began to spin off distribution subsidiaries. At the same time, private companies started to take roles in the sector. Today, the filed of local distributors consists of state-owned companies descended from state-owned sector- or city-specific

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monopolies, state-owned autonomous companies spun off form state monopolies, and private companies. In general, the major problems exporters can expect to encounter when dealing with domestic wholesalers are: • Inability to provide market information Wholesalers are generally either unable or unwilling to provide data on where product is moving and which retailers sell it most efficiently, how different brands perform and what competitive pressures are operating. • Lack of financial strength Wholesalers are used to taking goods on credit; accounts receivables often extend well beyond 90 days. • Inadequate warehousing and poor transport conditions • Limited market reach As most distributors operate networks centered on individual cities under the old system, few domestic distributor have national reach. In practice, most fast-moving consumer goods manufacturers have found that they have to work directly with city-level distributors for each city they sell into. They usually take one or more of the following routes to achieve nationwide distribution: • Appoint several regional-level distributors to handle relationship with wholesalers in cities. • Directly supply one or more wholesalers in each urban market • Directly supply major retailers (such as supermarket chains or department stores) Foreign agent and distributors Although traditionally foreign distribution companies could not obtain national wholesale licenses, a few firms managed to obtain a patchwork of local licenses, which allow them to provide services as coordination of goods (pass goods to mainland distributors). And they typically take a margin of 30-40%. Wholesale markets Wholesale markets mushroomed during the 1980s-90s, plugging the gap in China’s traditional distribution system. They can be found in or near large cities (major cities, including Beijing). While no official figures are available for 2005, China is believed to have some 3,200 specialized and large scale wholesale markets whose annual trade volume surpassing RMB 100 million yuan (US$12.5 million). The number of the specialized and large scale wholesale market observes a rapid growth (with 10.2% growth yearly). Many of the larger markets are located in Shandong and Zhejiang provinces. Most foreign consumer goods manufacturers have managed in recent years to expand their network of distributors to cover China’s largest 40 cities, which account for more than half of

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urban retail sales; many have expanded into as many as 90 cities. Retail channels Chain stores and other modern retailers are beginning to emerge in China’s large urban centers. There are estimated to be roughly 5 million retail outlets in China. Sales activity is heavily concentrated in the cities. Retail chains are also beginning to take up significant portions of the market, with chain stores in Shanghai controlling some 75% of supermarket sales. Supermarkets now account for almost one-third of consumer goods sales turnover in cities, while hypermarkets (both local and international) account for another one-third, and convenience stores roughly 5%. Over the next three to five years China’s retail sector will consolidate to the point where up to five international-standard retail groups control 60% of the market, with 30% held by national retail chains and less than 10% controlled by regional operators. The most common retail formats are: Mom & Pop kiosks Small, individually owned stores are by far the most prevalent type of retail outlet in China. There are more than 13 million individually owned stores nationwide, accounting for over 90% of all retail outlets in the country. The stores as small as 10 square meters, most sell snack foods, fruits and drinks and a smattering of personal care or household items, such as soap, shampoo and detergent. Individually owned stores are difficult to penetrate uniformly given their sheer numbers. These small stores, however, have been key to a number of famously successful distribution strategies- notably those of Coca-Cola and Procter & Gable whose products have become part of the city and town landscapes. In addition, managing accounts receivable with individually owned stores is easier than with supermarkets and hypermarkets, since the store owners tend to pay in cash. Convenience stores Most Chinese urbanities still rely on small mom-and-pop stores for convenience staples, including cigarettes and beverages, but in China’s highest income cities- Shanghai and Guangzhou – chain outlets specializing in such merchandise have emerged as a fast and furious retail phenomenon. Shanghai has experienced feverish growth, with rapidly expanding local chains controlling the sector. Guangzhou and Shenzhen, in contrast, are dominated by the US-based convenience retailer 7-Eleven, which, until recently, has enjoyed only modest government-regulated growth. Major government-backed chains Hualian and Lianhua, both Shanghai-based, have expanded out

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of the cluttered supermarket sector into convenience stores. Hualian, for example, runs a fast-growing Lawson chain in Shanghai through a Japanese joint venture. Another major Shanghai player, All Days, is backed by Nong Gong Shang, the third largest of the city’s four state-owned supermarket groups. All days so far has over 500 stores. Managing accounts receivable with convenience stores is also easier. Foreign invested convenience stores tend to buy on short-term credit, a month or less. Department stores In China a department store can mean a store of any size that sells general non-food merchandise. Many self-styled department stores are simply one-storey, store front operations with a few hundred square meters of floor space. Most cities, however, have several multi-storey department stores selling a full range of goods. Large cities, such as Beijing, and Shanghai, in fact, have far more major department stores than their markets can support, thanks to over-expansion in recent years. Most department stores are single-outlet operations; only a few of the largest players have three or four outlets, normally confirmed to one city. Cashier counters are separate from merchandise counters, requiring the purchaser to make a round-trip to pay for and then collect merchandise. Space is often rented out to producers in “sell-though” arrangements, lending many stores a bazaar-like atmosphere, with representatives of different manufacturers competing for shoppers’ attention. Saturation is a problem. Beijing now has more than 8.4 million square meters of retail space and over 70 major department stores, with famous outlets such as Beijing’s Wangfujing department Store and Shanghai’s Number One falling into the red. Supermarkets

China's top 100 chain operators registered 707.6 billion yuan (US$87.35 billion) in sales revenue in 2005, a year-on-year increase of 42 per cent, according to China Chain Store & Franchise Association (CCFA).

By the end of 2005, the number of stores operated by the top 100 companies increased by 26 per cent to 38,260 from 30,416 a year ago.

Bailian Group Co Ltd continued to lead the sector last year. Its sales increased 7 per cent to 72.07 billion yuan (US$8.9 billion) in 2005, and its number of stores totaled 6,345, a year-on-year growth of 15 per cent.

Home appliance retailers Gome and Suning achieved 49.84 billion yuan (US$6.15 billion) and 39.72 billion yuan (US$4.9 billion) in sales revenue respectively, coming out second and third in the ranking.

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Sales of the top 100 chain operators accounted for 10.5 per cent of the country's total retail sales of consumer goods in 2005. The ratio was 9.3 per cent in 2004.

Average sales revenue of the top 100 companies was 7.1 billion yuan (US$876 million) last year, 3.4 times that of 2001.

The average number of stores was 382 last year, up from 131 in 2001.

There were 18 foreign-funded companies among the top 100 chain operators in 2005, six more than the previous year.

The foreign-funded companies contributed 20 per cent of the total sales of the top 100 operators.

China’s supermarket chains are beginning to centralize their purchasing, rather than leave it up to individual stores. Most chains tend to deal with local distributors only. Accounts receivables can be a problem among domestic chains, which generally ask for credit from distributors and wholesalers. Supermarkets usually make payment within 60-90 days. Hypermarkets Full-service hypermarkets – featuring a store size of 2,500 square meters or above and carrying at lease 5,000 stock-keeping units – are leading a revolution in China retailing. Consumers are responding enthusiastically to the markets for their wide range of products, clean and pleasant shopping environments, and affordable price. In one trip, consumers can purchase clothing, electronics, kitchenware, as well as a wide range of fresh and packaged foodstuffs. For now the hypermarket sector is dominated by foreign players. Domestic companies have come up with a response to this model: warehouse stores (huochang shangdian). The stores copy some of the simpler hypermarket features while boasting larger floor plans that allow hem to cut prices even further. They also offer more numerous and more convenient locations than the hypermarkets. Despite the adoption of centralized purchasing by local Chinese supermarket chains, direct importation by these chains has been hampered by the chain’s small sizes. At the present time, only the wholly-owned and joint venture hypermarkets in China are the only retail chains with great geographic reach and could implement nationwide centralized purchasing. These hypermarket chains include: Wal-Mart, Carrefore, Metro/Makro, and Trust-Mart. Franchise The franchise sector in China saw rapid growth in 2005, according to the China Chain Store & Franchise Association (CCFA). By the end of 2005, the country had 2,320 chains using franchises, 10.4 per cent more than a year ago. There were 168,000 franchised stores, 40 per cent up

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compared with about 120,000 by the end of 2004. The country fully opened the franchise sector in December 2004 according to its World Trade Organization (WTO) commitments. In 2005, many international franchise chains like Burger King fast food restaurants, Super 8 budget hotels and Uniglobal Travel began franchising in China. Trading via Hong Kong For foreign vendors without a presence in China – especially those selling their products into China for the first time, or selling relatively unknown products – appointing an agent in Hong Kong can be a relatively hassle-free method for importing into China. Hong Kong companies are well experienced in dealing with Chinese importers and can serve as very effective middlemen. However, care should be taken in selecting an agent. In the past, smuggling was a common procedure to transport goods across the border into mainland China. However, the combined effect of Beijing’s anti-smuggling crackdown, and reduced tariffs have reduced this gray channel to the point where this option is no longer worth the risk for the majority of traders. Advantages of appointing a Hong Kong agent include: • Giving the principal more time to get to know the market in China and requires only a small

investment; • The principal can see how products sell in China without bearing much of the risk. The disadvantages are: • A slower start in selling to the Chinese market than if the principal has its own office in China; • No control over the pricing of the product. The agent sells to an importer in China and

markets the products through its own channels. The price will usually be agreed upon between the agent, the importer and the wholesalers in China.

If foreign vendors choose to appoint a Hong Kong agent, they should bear in mind the following: • What kind of presence the agent has in China • The agent’s willingness to work on marketing plans, visit the Chinese importer and end-users,

and consult about the pricing policy with your company • What other products the agents represents, and if they are in conflict with your own product. Government procurement

The total value of China's government procurement in 2006 will hit 300 billion yuan (37 billion US dollars), according to China's Ministry of Finance.

The figure will exceed the total of 2005 by 5 billion yuan (621 million dollars).

The ministry says the 2006 government procurement program, which includes purchases for the whole country, will further expand the scope and scale of government purchases this year.

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In view of the sheer size of the government procurement market, many foreign businesses have been keen to participate in such procurement, whether by supplying goods and services to large infrastructure projects such as the Three Gorges Project and Beijing Olympics-related projects or by participating in local government procurement activities. It is, therefore, important for foreign suppliers to familiarise themselves with the provisions of the new Law of the People's Republic of China on Government Procurement (Procurement Law) which was promulgated on 29 June 2002. The Procurement Law, which came into effect on 1 January 2003, represents a comprehensive attempt to regulate government procurement at all levels of the administration and significantly expanded on the range of government purchases which are subject to governmental control. 3 Sale promotion General considerations To do business in China, it is essential to keep in mind the importance of personal connections. A foreign company might have a very good product ready to sell and want to have it distributed. If the company does not already have considerable name recognition in China, any distributor approached will likely refuse a proposal to handle the company's business. In order to start doing business in China, a foreign businessperson needs either to take the time, which surely will be long, to win distributors' confidence, or else to retain someone who has already established a strong network of contacts. However, once they succeed in winning confidence and establishing business connections with clients, the new comers will enjoy an unbroken relationship unless they cause the clients some kind of serious trouble. Fairs and exhibits

Approximately 3,200 commercial exhibitions are held every year in China, making it the world's third largest exhibition market after the European Union and the United States. That figure is expected to easily top 5,000 within three years, which would be three times greater than international trade fair powerhouse Germany.

Only around 100 exhibitions, or 3 per cent of the total, are widely recognized in their respective sectors. A mere 22 are certified by global exhibition industry association UFI. Most of the rest are small trade fairs held in around 50 Chinese cities, many of which are poorly organized, repetitive and unprofitable. Only 10 national fairs whose exhibition area surpassing 50,000 square meters. The main exhibition venues are Beijing, Shanghai and Guangzhou. The lesson is that to organize a fair or participate in the fair in China, bring food product samples to China is a very sensitive issue. According to the Customs Law in China, the quarantine and sanitary inspection shall not be avoided under any situation. So it is very important to choose a freight forwarder, who has a good relation with the customs and who can handle the inspection procedure efficiently.

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In addition, it is also important to cooperate with the freight forwarder to prepare in advance a complete documentation (such as bill of lading) for the customs clearance and quarantine and sanitary inspection. Besides providing samples in English, HS codes shall be attached to the samples to help to identify the product category. For a certain product, coffee, for example, coffee not roasted requires a quarantine certificate, while coffee roasted and soluble coffee do not require quarantine certificates. Another concern is protecting intellectual property rights (IPR). A new regulation on intellectual property rights (IPR) protection for exhibits comes into effect as of March first, 2006. The regulation was jointly issued by the Chinese Ministry of Commerce, the State Administration for Industry of Commerce of China, the National Copyright Administration of China, and the State Intellectual Property Office. According to the regulation, exhibition organizers have to strengthen the protection and auditing of IPR protection of exhibits. An office should be established by exhibition organizers to handle complaints about IPR infringement if an exhibition is to be held for over three days, the regulation said. The regulation also requires corresponding departments to accept and hear cases involving IPR infringement, including those for patents, trademarks and copyrights. Those exhibition organizers and participants infringing IPR may be prohibited from holding or joining exhibitions again. Advertising media The advertising market in China is the second largest in Asia, after Japan, and it is considered the ninth largest market in the world. Advertisers have been able to improve the efficiency of their attempts to reach Chinese consumers due to the expansion of the media in China and an increase in research data relating to media. Television accounts for 80% of advertising spending in China. The penetration of television into more and more Chinese households spread over an increasingly diverse range of localities and economic classes has exposed new consumer markets to advertising campaigns. Advertising is an effective way to create product awareness among potential consumers in China. Channels for mass advertising include publications, radio, television and billboard display, as well as sports sponsorship. There are many advertising companies in China, including Chinese, foreign and Chinese-foreign joint ventures. China’s 1995 Advertising Law contains guiding principles that set broad requirements. For example, comparison advertising is not allowed, nor is use of superlatives. And separate regulations exist on real estate, pharmaceuticals, medical equipment, food products, tobacco

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products and alcoholic beverages Prices for advertising are regulated by the State, and are higher for foreign than local companies, although the Chinese government has promised to eliminate such price discrimination. Watchdogs • State Administration for Industry and Commerce (SAIC) and local bureaux (AICs) • China Advertising Association (CAA) • State Administration of Radio, Film and Television (SARFT)

Table 2 Advertising options

Barriers to market research affect the ability of advertising companies and other communications service companies, such as public relations firms, sales promotion companies, and corporate identity firms, from reaching their target audiences effectively. Consulting services in marketing When starting business in China, market research is of critical importance. There are around 1000 market research agencies. Because of the mushrooming growth, however, it has become more difficult for a client, particularly for a foreigner, to find good research agency. A first step to finding a reliable company may be to consult the directory of the China Marketing Research Association. Research companies are divided into four basic types, general and specialized market research companies, research institutes, consulting firms, and advertising agencies. Each has advantages and disadvantages. The research institutions, for example, offer clients excellent analysis skills, but charge relatively high fees. Unlike the general or specialized market research companies, the institutes do not conduct surveys themselves. Consulting firms conduct surveys themselves, but the number of samples and the market coverage are not as extensive as the general or specialized research companies. Their main selling point is their ability to investigate a certain subject in depth. Fees for surveys are difficult to summarize. The rate schedules depend on the scope and the subject of the survey and region where it is to be conducted. Rate difference is often attributable to the volume of data that each research agency maintains internally. Chinese society is currently undergoing such a rapid change that a time span of just 6 months can sometimes render previous surveys obsolete. This is particularly true of consumer goods; manufacturers and distributors handling such goods should always keep this in mind. China's consulting industry is now focusing on five areas, namely, engineering, management,

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comprehensive consulting (on policy making), technology and specific industries. However, the industry is still in the development stage according to an analysis report made by the China International Economic Consulting Company. With the entry of WTO, foreign companies would become more active on the China market, which will create huge pressure and challenges for China's consulting industry. Foreign consulting companies are ready to enter China and compete for a share of the market. Their advantages include: First, large scale, reputation, rich experience, ability, and name. Second, flexibility, featured by dual operation function of convenient service and high-grade ideology. They can serve the needs of government, big companies and enterprises, or families, and small enterprises. Third is their scientific management and advanced facilities, boasting high-profile experts, and computer control systems. At the same time, competition on the consulting market, following globalization of the economy, will become fiercer. Consulting service enterprises in the developed countries will expand their operation to China and compete to serve enterprises and government organizations. They will undoubtedly snatch a share of the market. 4 Trade practices Appointing an agent Setting a wholly foreign owned trading company in China. In theory, it is possible for a foreign investor to set up a wholly foreign owned trading enterprise in China, as in Wai Gao Qiao in Shanghai. However, on a practical basis, the system for approval of such an enterprise is extremely bureaucratic. Although possible, it is not easy to pursue this route. Appointing an import enterprise in China to provide services as importer of products and carry out the necessary paperwork for their sales to purchasers in China. This is quite a common method for foreign traders to use to introduce produce products into the China market. The import company in China provides services and documentation for the products imported and attends to payment of customs duty and import VAT. They follow the vendor's instructions when dealing with the products. Their fee is usually based on a percentage of the cost of the products imported or a percentage of the ultimate sale price of the products in China. 3% of either the cost of products or the sale price of products will a reasonable fee. However, in practice the import company needs to understand the scope of services and possibly the volume of products before agreeing the fee level. Using this method, there is still a reasonable amount of work to carry out in China, so staff may be needed there. One option is to register a representative office in China and employ staff to carry out certain duties such as marketing. It should be noted that although staff of a representative office can show products to customers, they are not permitted to enter into sales

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negotiations or sale contracts. It should also be noted that a representative office is not considered a legal entity in China and therefore, does not have the legal status to import products or to maintain a foreign exchange account with State Administration of Foreign Exchange (SAFE). Appointing a company with an import license and foreign exchange account to act as its distributing agent in China for importing and distributing these products to the various purchasers in China. When the volume of products is high and the distribution of products is geographically dispersed within China, consideration may be given to identifying an effective distribution agent to carry out marketing and distribution functions. With this method, the vendor can negotiate with the distribution agent as to the scope of its services. One of the important services which the distribution agent is likely to carry out is marketing. The agent can either be a chain of well located stores or a distribution company with a diversified and effective distribution network. Establishing a retail business in China When establishing a retail business in China there are several issues which need to be considered and acted upon to ensure success. Retailers who need to effect payments direly to foreign companies must maintain a foreign exchange account with State Administration of Foreign Exchange (SAFE). For all products imported into China, it is the responsibility of the importer to declare and pay the customs duty and import VAT. Typically, customers act as importers for the purpose of paying the customs duty and import VAT on behalf of the seller. Examples of such entities in China are department stores that are partly owned by foreign investors and companies with the appropriate import license. Opening a commercial representation office Where foreign enterprises need to establish permanent representative offices in China, they shall apply to competent authorities for approval and go through the formalities for registration. Without prior approval and registration, no foreign enterprises may establish permanent representative offices in China. I. Applications of foreign enterprises for the establishment of representative offices in China shall be filed with the following competent authorities in accordance with the corresponding trades: 1. For enterprises of trade, commerce, manufacturing and cargo transportation agency,

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applications shall be filed with the Ministry of Commerce of the People's Republic of China for approval; 2. For enterprises of banking and insurance, applications shall be filed with the People's Bank of China for approval; 3. For enterprises of maritime transportation and maritime transportation agency, applications shall be filed with the Ministry of Communications of the People's Republic of China for approval; 4. For enterprises of air transportation, applications shall be filed with the Civil Aviation Administration of China for approval; 5. And, for enterprises of other trades, applications shall be filed with competent commissions, ministries and administrations of the Government of the People's Republic of China for approval, in accordance with the nature of their business. II. In applying for the establishment of a representative office in China, the foreign enterprise concerned shall submit the following certificates and other materials: 1. An application signed by the president or managing director of the enterprise, which shall include the name of the representative office to be established, information on its top leaders, its scope of business, the duration of stay, its address, etc; 2. An official license to do business issued by competent authorities of the country or region where the enterprise is based; 3. Certificates of the credibility rating of the enterprise issued by financial institutions which have regular business relations with the enterprise; 4. And, letters of authorization for the personnel with the representative office appointed by the enterprise and the resume of the personnel. For enterprises of banking and insurance applying for the establishment of representative offices in China, they shall also submit the annual statement of assets and liabilities, the annual statement of losses and gains, the charter of incorporation and the list of the members of the board of directors, in addition to the certificates and other materials required by preceding Items 1, 2, 3 and 4. III. After the approval of the application of a foreign enterprise for the establishment of a representative office in China, the enterprise shall take the certificate of approval to contact the State Administration for Industry and Commerce of the People's Republic of China to go through the formalities for registration within 30 days counted from the date of approval. In going through the formalities for registration, it shall fill in a registration form and pay a registration fee before obtaining a registration certificate. Where a foreign enterprise fails to go through the formalities

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for registration by the deadline, it shall have to return the certificate of approval for revocation. Insurance in Int'l Trade

Insurance was originally applied to losses at sea. Every shipment runs the risk of a long and dreary list of hazards: fire, storm, collision, theft, leakage and explosions. Insurance is now provided to cover almost any kind of occurrence that may result in loss. Its purpose is to provide compensation for those who suffer from loss or damage. In other words, it is a contract of indemnity, a contract to restore to his original position a person who suffer loss. A contract of insurance is one between a party who agrees to accept the risk (the insurer) and a party seeking protection from the risk (the insured). In return for payment of a premium, the insurer agrees to pay the insured a stated sum or a proportion of it should the event insured against occur. Premiums are quoted as a percentage of the sum insured. If the proposal is accepted, the insurer is required by law to issue a policy, which sets out the terms of the contract, including the risk to be covered, the sum insured and the premium to be paid. The basic instrument in insurance is the policy. A policy is a contract, a legal document, and its principal function is to serve as evidence of the agreement between the insurer and the insured. A policy must be produced to press a claim in a court of law. An exporter also must put up a policy as collateral security when he gets an advance against his bank credit. Disputes and commercial arbitration Arbitration has become very popular in resolving international commercial disputes. Arbitration has advantages in that it is convenient, cost-saving and efficient in concluding cases. Arbitration allows the parties full autonomy and can resolve disputes independently, impartially and without delay. It is also preferred for its flexibility, confidentiality, finality and enforceability of its award. More parties have come to choose and adopt arbitration for dispute resolution. China has been advocating and encouraging the use of arbitration to resolve international commercial disputes. The establishment of a foreign related commercial arbitration institution in China was announced as early as 1956.Over the past four decades, arbitration in China has made a great progress with remarkable achievements. At present, China's foreign-related arbitration institution has the heaviest caseload in the world, and the impartiality of its awards has been recognized unanimously both at home and abroad. The cases accepted involve parties from more than 40 countries and regions. China has become one of the world's major commercial arbitration centers. I. Arbitral Organizations Handling Cases Involving Foreign Element in China There are two arbitral organizations handling cases involving foreign element in China. One of them is China International Economic and Trade Arbitration Commission (CIETAC) and the other is China Maritime Arbitration Commission (CMAC). CIETAC handles disputes arising from

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international economic and trade activities, while CMAC handles maritime disputes. The China International Economic and Trade Arbitration Commission established in Beijing, has chapters in Shenzhen and Shanghai, and liaison offices in Dalian, Fuzhou, Changsha, Chengdu and Chongqing. The commission and chapters accept arbitration cases according to arbitration rules and regulations, use the unified Arbitration Rules and Panel and Panal of Arbitrators. The liaison offices are responsible for providing arbitration consultation services, help arrange arbitration tribunal, and do promotion work for arbitration publicity and promotion, collect related arbitration information, develop arbitration research work and carry out work appointed or entrusted by the arbitration commission. China International Economic and Trade Arbitration Commission Address: 6/F Gaolan Building, 32 Liangmajiao Road, Chaoyang District, Beijing Post code: 100016 Tel: 8610-64646688 Fax: 8610-64643500 64643520 Website: http: //www.arbitration.org.cn The China Maritime Arbitration Commission, established in Beijing, has liaison offices in Shanghai and Guangzhou. The China Maritime Arbitration Commission accepts maritime arbitration cases according to arbitration rules and regulations. The liaison offices are responsible for providing arbitration consultation services, assist to arrange arbitration tribunal, carry out arbitration publicity and promote arbitration negotiations, collect arbitration information, develop arbitration research and do work appointed and entrusted by the arbitration commission. China Maritime Arbitration Commission Address: 6 Gaolan building, 32 Liangmaqiao Road, Chaoyang District, Beijing Post code: 100016 Tel: 8610-64646688 Fax: 8610-64643500 64643520 Website: http: //www.arbitration.org.cn Scope of Accepting Cases China International Economic and Trade Arbitration Commission (CIETAC) independently and impartially resolves, by means of arbitration, disputes arising from international or foreign-related, contractual or non-contractual, economic and trade activities. CIETAC takes cognizance of cases relating to the disputes: (1) international or foreign-related disputes ; (2) disputes related to the Hong Kong SAR, Macao SAR or Taiwan regions;

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(3) disputes between the enterprises with foreign investment and disputes between an enterprise with foreign investment and another Chinese legal person, physical person and/or economic organization; (4) disputes arising from project financing, invitation for tender, bidding, construction and other activities conducted by Chinese legal persons, physical persons and/or other economic organizations through utilizing the capital, technology or service from foreign countries, international organizations or from the Hong Kong SAR, Macao SAR and Taiwan regions; and/or other economic organizations through utilizing the capital, technology or service from foreign countries, international organizations or from the Hong Kong SAR, Macao SAR and Taiwan regions; (5) disputes that may be taken cognizance of by the Arbitration Commission in accordance with special provisions of or upon special authorization from the law or administrative regulations of the people's Republic of China, and; (6) other domestic disputes parties agree to arbitrated by the Arbitration Commission. China Maritime Arbitration Commission(CMAC)independently and impartially resolves, by means of arbitration, contractual and non-contractual maritime disputes arising from, or in the process of ,transportation, production and navigation by or at sea, in coastal waters and other waters connected with sea, with a view to protecting the legitimate rights and interests of the parties concerned. CMAC takes cognizance of maritime cases relating to the disputes: (1) dispute arising from salvage and general average; (2) dispute arising from collision between vessels, or from damage caused by a vessel to the structure and installation on the sea, waterways connected with sea, and in the harbor as well as the submarine or underwater installation; (3) dispute arising from management, operation, chartering, mortgage, agency, towage, raising, sale, repair, building, dismantling of sea-going/river vessels, as well as transportation by sea or by river in virtue of contracts of affreightment, bill of lading or other documents, and marine insurance; (4) dispute regarding the exploitation and utilization of the sea resources and pollution damages to the environment of sea; (5) dispute arising from contract of freight forwarding, supply of ship's stores, employment of seamen aboard a foreign vessel, fishery production and fishing;

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(6) other maritime dispute submitted for arbitration by agreement between the parties.

VII RECOMMENDATIONS TO BRAZILIAN COMPANIES 1 Advice on China Import Procedures China have freedom in undertaking all the import activities including international trade, with the exception of those forbidden by state laws and regulations. Some of the import procedures are open to choice. Whether these procedures are necessary is solely decided by the kinds of import and the category of the import commodities. Most of the import businesses in China are transacted in FOB prices. Only a very small minority of the import commodities are transacted on CIF terms. The majority of means of payment are in letter of credit (L/C). The commodity import include a series of steps from signing a contract to making the payment. The general import procedures transacted under the terms of FOB include: writing down an effective contract, writing L/C, booking space, pushing for shipment, insurance, checking documents, making payment, customs declaration, receiving the shipment, inspection, goods delivery and claiming import indemnity. How to set up a representative office of a shipping company in China According to Article 48 of Decree No. 1 (2003) of the Ministry of Communication of P. R. China (MOC), promulgating IMPLEMENTING RULES OF MARITIME REGULATIONS, which was effective on March 1, 2003, a rep office of foreign shipping company can be established in China. The following document shall be submitted to MOC through the Qingdao Transportation Bureau: • Letter of Application, which should contain the name of the company, the location of • the rep office, the business scope and the time period for which it will operate, etc. • Certificate of Business Registration • Description of the company including the date of establishment, business scope, latest annual

report, number of employee, overseas agencies, etc. • Letter of appointment for the chief representative, singed by the chairman of the board or the

managing director of the company. • Credentials of the chief representative including name, nationality, resume and ID.

2 Advice on Business Trips China, as the world’s most populous country, has quickly become an important market for many Brazilian businesses. Commercial Sections of Brazilian embassy and Consulate in

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Beijing, and Shanghai warmly welcome Brazilian exporters to China and have prepared this introduction to give business travelers the knowledge and confidence to explore China as a market for Brazilian products. Many business travelers are hosted by Chinese government officials or companies. However, since China has opened its doors to the Western world, it is very convenient to travel to China on your own. What’s more important is to understand that travel in China is quite different from business travel to more developed areas of the world. Planning is key. Internet is the quickest and most convenient way to learn about China before you go; there are many excellent web-sites to choose from. For example, the web pages of Brazilian Embassy in China (www.emb-brazil.org.cn) and Chinese Embassy in Brasilia (www.embchina.org.br). How to obtain the Chinese visa Traveling in China requires a valid Brazilian passport and a tourist or business visa. There are several situations as follows: - If traveling to China for only a period of days or weeks, we suggest you apply for a tourist

visa at the Chinese Embassy in Brasilia, or at one of the Chinese consulates in Sao Paulo, or Rio de Janeiro.

Jurisdiction Areas of the Chinese Embassy and Consulates in Brazil: Consulate General of the People's Republic of China in Sao Paulo: Seção Consular da Consulado Chinês em São PauloJurisdiction Area: Sao Paulo and Parana Consulate General of the People's Republic of China in Rio de Janeiro: Seção Consular da Consulado Chinês no Rio de Janeiro Jurisdiction Area: Rio de Janeiro, Minas Gerais, Bahia and Espirito Santo Embassy of the People's Republic of China in Brasilia: Jurisdiction Area: All other states and areas in Brazil - If you need to stay in China for more than a month and are clearly working in an office as an employee, then it is best to apply for a business (F-type) visa. Business visa applications require a letter of invitation which can be faxed from a China-based company or Chinese government office. It may also help to take evidence of your Chinese business connection. If you request a multiple entry visa that is valid for six months, it allows you to stay in China between 30 and 60 days each entry.

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http://www.emb-brazil.org.cn/

http://www.embchina.org.br)/


Climate The north China is characterized by aridity and dry plains, while the south is characterized by high humidity and lush greenery. The north tends to have extremely cold, dry winters, while winters are wetter south of Shanghai. Summer weather in most of China can be unpleasantly hot and unpredictable. The best times to visit tend to be spring and fall, although fall weather tends to be more pleasant and reliable. Book air travel well in advance, as spring, end of summer, and fall tend to be the busiest travel seasons in China. Getting to China Currently, Brazilian passenger airlines are authorized to fly to mainland China in accordance with the bilateral agreement on air transportation. In 2006 Varig Brazilian Airlines, Brazil's largest carrier, launched code-share flights with Air China between the two countries. Air China will fly from Beijing and Shanghai to Frankfurt, while Varig will take passengers on from Frankfurt to Rio de Janeiro and Sao Paulo. The total journey time will be shortened to 27 hours, including transfers. Passengers do not need a transit visa. Previously, passengers traveling from China to Brazil had to travel for at least 30 hours. In June 2006, Varig canceled 180 of its 356 flights in Brazil, Latin America, Europe and the United States. Varig, or Viacao Aerea Rio-Grandense SA, in a statement on June 21, 2006 called the suspensions "temporary" but did not say how long they would last as the carrier negotiates with jet leasing companies and tries to emerge from an increasingly bleak bankruptcy reorganization process. Brazilian passengers can also fly to China through North America or Europe. Hong Kong offers a wider variety of transport options particularly to cities in Guangdong and to Macao: to Guangzhou by air (25 minutes), train (3 hours) or express bus; to Shenzhen by express bus and light rail; and by ferry, catamaran, or hydrofoil to Zhuhai and Macau. Domestic travel within China is possible only on Chinese-owned carriers or via special charter. Booking tickets in Brazil for domestic flights in China has become much easier than in the past. Check with your travel agent in the Brazil; many can purchase these tickets for you. Your hotel or a travel agent in China should also be able to do this. Safety China is a relatively safe country. However there are still several points that we would like to remind you of: - Please take great care when you cross the roads. This is due to the general chaos on the streets,

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exacerbated by poor street lighting, inadequate signage and few crossing points. - Violent crime is a rarity, but theft is still a social problem, especially in the three biggest cities ( Beijing, Shanghai and Guangzhou). So be careful, and don’t become a target for thieves and pickpockets. - Prostitution is on the increase along with associated diseases. The best advice is better safe than sorry. - Valuables should be locked in a hotel safe. Hotel Accommodations In some larger cities like Beijing, Shanghai or Guangzhou, you may find a large choice of accommodations from truly full service five-star hotels to much more modest and also economical options. Hotels that have less than a three-star rating are not recommended for business travelers. Most non-Chinese-speaking Brazilians prefer four or five-star hotels because of the presence of some English-speaking staff and good facilities. Travelers to other cities in China may wish to explore booking accommodations with one of the well-known international chain properties (Hilton, Holiday Inn, Inter-Continental, Shangri-La, Sheraton, etc.) or may contact Brazilian embassy or Brazilian Consulate. (See annexed section for phone and fax numbers.) Since 1998, the Holiday Inn, Shangri-La, and Sheraton chains have expanded rapidly in China and now manage hotels in many of the top twenty cities. Cash or Travelers Checks and a Money Belt Bring cash or travelers checks. Credit card acceptance is growing; and the most common credit cards are accepted at major hotels, hotel restaurants, branches of Friendship Stores, government-run antique and handicraft stores, and in factory sales rooms that deal with foreign tourists. However, if you plan to travel outside the major cities, or dine and shop outside the larger hotels, you will need plenty of cash. Travelers checks can be converted to local currency at most hotels and at branches of the Bank of China. Business cards and mementos It would be most helpful to bring Chinese-English bilingual business cards. And, after your meetings with the Chinese, it’s a nice gesture to offer a small company-related or USA memento (e.g. pens, caps, mugs). Product Samples Bring product sample, especially for new to market items, although product pictures are a good alternative if you can’t bring samples. It is extremely rare for foreigners’ ordinary luggage to be searched upon arrival at airports in China. Therefore, business travelers should bring small quantities of product samples packed inside their regular tourist luggage (not packed in cardboard boxes). Additionally, many U.S. companies have successfully shipped a box or two of samples and brochures via DHL, FedEx or other carrier to a Chinese address. We don’t recommend

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shipping samples by air freight on commercial carriers. If there is no alternative, then make sure to write the following on the invoice: “No Commercial value, Not dangerous, Sample only,” and make sure that the price of the sample is marked zero, no commercial value. Otherwise a lot of problems can occur, such as delays, tax assessments, or other bureaucratic hassles. Arriving In China Chinese authorities require all foreign visitors to undergo passport, health, and customs formalities prior to entering the country. The process is simple and involves completing brief forms provided by most international airlines prior to landing. If you do not receive these forms, they will be available near the arrival gates at the airport. Health Declaration Form - must be filled out by all foreign visitors and handed to officials at special counters in each airport. Entry-Exit Form - required of visitors not traveling with a group. Handed to immigration officials along with the passport at border control counters in each airport. Customs procedures have been simplified. Only visitors with large amounts of cash, commercial samples, office equipment (not just a single laptop computer) have to complete the Customs Declaration Form at the airport. If you must fill out the form, retain the stamped copy until you leave China, for checking by Customs officials. All baggage must be x-rayed at some ports of entry before you will be allowed to carry it through Customs. Beyond this, only periodic spot-checking of luggage occurs. Money Unless your transportation from the airport is arranged by your host in China, you will need to change some money at the airport in order to get a taxi to your destination. The official Chinese currency is the Renminbi (RMB). The basic unit of currency is the yuan. Each yuan is divided into 10 jiao. Each jiao is divided into 10 fen. Yuan notes are issued in denominations of 100, 50, 20, 10, 5, 2 and 1. There is also a 1-Yuan coin. Jiao and fen are issued in both paper currency and coins in denominations of 5, 2, and 1 each. The RMB is not traded on international markets. It can be bought or exchanged within China and Hong Kong and along some northwestern borders. It is also possible to purchase some RMB from currency exchange windows in American airports, but the rate is particularly unfavorable and shouldn’t be considered under normal circumstances. Any RMB you have left should be converted before leaving the country. Make sure you keep enough to pay for transportation to the airport and the required departure tax. Current exchange rates are published in the China Daily. This rate applies in all banks, hotels,

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airport and retail (Friendship Store) exchange counters. Travelers checks bring a slightly better rate, however some banks and hotels add a small fee, which may offset the advantage. In recent years, the currency has been very stable against the US dollar, U.S. $1= RMB8.02. Banking hours are generally 8 a.m. to 5 p.m., weekdays, and 8 to 11:30 a.m. on Saturdays. Hotel exchange counters are open longer, seven days a week. Language Mandarin Chinese is the official language of China. However, in some areas, people speak a local dialect or a regional language (Cantonese, Shanghainese, Sichuanese) which will be unrecognizable, although nearly all also speak Mandarin fluently as a second language. Brazilian Embassy in Beijing, and Brazilian Consulate in Shanghai maintain a partial list of available translation services. Consider carrying a small traveler’s guide to Chinese words and phrases -- a good primer for learning to speak a few civilities like “thank you” (xie xie in pinyin, pronounced like “shay-shay”), “hello” (nin hao in pinyin, pronounced like “neen how”). Translators and interpreters Clients or potential clients who visit a Chinese company will find that the company provides an English interpreter for the meeting. This person will be either an in-house interpreter or an interpreter hired from an agency. Even so, vendors or sales persons who visit a Chinese company should supply their own interpreter. In China it is difficult to find a Portuguese interpreter. Contact Brazilian embassy or consulate can be one option. There are about 3,000 translation companies in China, most of which are located in Beijing and Shanghai. Others are in major coastal cities. China Translators’ Association (CTA) has finished the drafting of new regulations to rectify irregularities, such as providing fast but poor translations at low prices. The quality of an interpreter will have a significant impact on the success of failure of a meeting. Unfortunately, it is not always easy to ascertain an interpreter's quality. While most professional translators have studied English for at lease eight or more likely, ten years, this is no guarantee of quality. Therefore, companies hiring interpreters and translators to help them do business should carefully screen and applicants. Many good ones are available, but it is all too easy to hire an inferior one by mistake. When arranging to engage a temporary interpreter, it is important to make arrangements well in advance. If an interpreter is to accompany a company representative to a business discussion, a charge of about $50 to $100 per hour, depending on the ability of the interpreter, is standard. In the case of a conference interpreter, the charge will be $300 to $500 a day. Since he (or she) cannot accept another offer to work on the same day, a professional interpreter will require a full day's fee even if the productive work time is only one to three hours.

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Translators, by contrast, charge only for the work actually done. Again, the fee varies according to ability. For translation from Chinese to English, the standard fee ranges from $10 to $30 per 1,000 Chinese characters. A volume discount is available for large translations. Again, the quality of the translated business documents will greatly affect business relationships. Water It is not advisable to drink tap water in China. Most hotels supply bottled water or boiled hot water in a thermos. Distilled and mineral water in plastic bottles can be found in most cities at a reasonable price. Phone Domestic and international long distance calls can often be made through direct dialing or booked through your hotel. Most major hotels in larger cities will add the charges to your hotel bill, however, some business travelers report having to pay for the calls immediately after they are completed. If you are unable to place a long distance call from your room, even when such services are noted in hotel literature, contact the front desk or operator and tell them you wish to have your room phone reconnected to long distance service. Some hotels turn off long distance service to unoccupied rooms and forget to reconnect promptly once a guest has checked in. Collect calls are much cheaper than direct calls from China. Because of the changing rates, the least expensive method for placing phone calls varies. IDD (International direct dial) and DDD (domestic direct dial) phones, fax, international/domestic post, telex and telegraph are available at the better hotels or the local Post & telecommunications offices. Check costs, minimum connection time, fax paper charge and service charges when calling or faxing from a hotel. If you have an international calling card with one of the major long distance carriers, check with your representative before you go about the most economical rates and method of calling. Calls to China from Brazil are usually less expensive than calls from China to Brazil. Another option is the recent arrival of the IP Telephony card, which must be purchased from a domestic telecom provider for use within China. The card functions for all intents and purposes like a calling card, but routes calls through the Internet, thus allowing significant savings for a minor reduction in quality. International calls cost approximately $.60/minute and the cards are available in denominations up to RMB500 (approx. $60). Ask the hotel concierge or have a Chinese speaking member of your company inquire at the local phone company office. Mail Airmail/domestic stamps are available at the front desk or kiosk in most major hotels. Some

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hotel business centers provide comprehensive letter and parcel services. Major international courier services operate in many cities; however, service takes three or four days instead of overnight. Further, they are more reliable for shipping things back to Brazil than for getting something to China. Rule of thumb: If you need it and it cannot be sent by fax, bring it with you. Time All of China is in the same time zone, and referred to as “Beijing” time. Beijing time is 11 hours ahead of Sao Paulo, except during daylight savings time when the difference is 12 hours. For example, 9 a.m. in Shanghai is 8 p.m. the previous evening in Sao Paulo. Business Hours Business hours vary with season and location but are normally 8:30 a.m. to 12:00 noon., 1:00 p.m. - 5 p.m. Use your weekends for sightseeing or report preparation and do not expect the Chinese to be anxious to give up their weekends to meet with you. Banking hours usually run from 9 am to noon and then from 1 pm to 5 pm, while on Saturdays hours are from 8 am to 11:30 am. Some banks close on Mondays. Department stores usually open at 9:00 am and close around 9:00 pm. Also, do not plan a business trip for October 1 (Chinese National Day, similar to the U.S. Fourth of July) , May 1 (International Labour day), or too close to Spring Festival (Chinese New Year, which is based on a lunar calendar and falls in mid-January to mid-February depending on the year), when much of the country shuts down for at least two weeks and the transportation networks are overloaded with people heading for home or back to work. Brazilian exporters are also discouraged from visiting Guangzhou during the twice per year (April 15-30, October 15-30) Canton Trade (Export) Fair which features mostly light industrial export items. Hotel and restaurant prices double or triple during the fairs while traffic jams worsen, meetings are difficult to arrange, and transportation in and out of the city is booked well in advance. Leaving China Make sure to confirm departure arrangements at least 72 hours before flight time. If you don’t, you will risk losing your seat. The concierge at your hotel, or someone with your host group, can handle this detail. Your passport, boarding pass and exit form must be presented to the border control officials before you will be allowed to proceed to the gate. Expect crowds and delays each step along the way, so allow about two hours prior to your departure time for international flights. Establishing personal relationships Personal relations are a big factor in getting things done in China. When you begin to do business

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with Chinese people, it is suggested that you make friends with them first, such as talking a little bit about your hobbies, your family members and yourself, then you broach the topic of business itself. It is usually worthwhile to impress on your Chinese customers your good character, rather than trying to impress on them your product. Tolerance, integrity, honesty, sincerity and a little bit of humor can help you set up a stable, constant and long-term working relationship with your Chinese partners. Comprehending the necessity of working lunches and dinners Working lunches and dinners are common during your stay in China. Participation is suggested, since it is the Chinese way to get to know some information that you may not get to know during the formal business meetings, such as competitor information, and also it’s the way to intensify the business relationship. Count on attending banquets arranged by your host. As a guest, you should return the favor, if feasible. If not possible on this visit, consider doing so on your next trip or when your Chinese counterparts come to Brazil, but be sure not to miss the opportunity. In China, people tend to eat early-lunch is from around 11:30 a.m., while dinner is served from 6 p.m. onwards. It is better not to serve alcohol before the meal. It’s important to articulate any food preferences and don’t feel too pressured to eat something you don’t like or drink more than you can handle. Work out the seating arrangements in advance, making sure to place senior figure from each side next to one another with an interpreter as necessary. At a meal, wait for your host to make the first toast before drinking. You may then offer a brief return toast if you wish. It is polite to use both hands when offering or receiving anything. Once the meal is over, it is not expected that guests and hosts will linger. Figuring out the management structure of the Chinese organization It is not always easy to discover who is the most senior official or executive. Often, the man with the most impressive title is not the one who makes the decisions; it may be his deputy. Another cause for confusion is that the senior executive may be a high-ranking Communist Party member, and his business card may give his party rank rather than his business title. Bring small gifts It is useful, but not absolutely necessary, to give small gifts to your Chinese customers during meetings or meals. Items that are not excessively expensive and are representative of your companies are best. Some examples: items with your corporate logo (mug, pen, key chain, etc.), or a book (with pictures) of the region where your company is based. Gifts should be given or exchanged at the end of the first meeting, or at the end of your stay in their city. Don’t expect your Chinese customers to unwrap your gifts in front of you, since they may not be accustomed to this practice. Bring name cards

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Name cards are an essential part of living and doing business in China. Whether here for business or pleasure, you should carry a good supply of name cards with you at all times. It is polite to accept and offer cards with both hands. After changing the name cards, don’t put them in your wallets immediately, please look at them around 10 seconds and then put them on the meeting table in front of you. After the meeting, be sure to collect all the name cards. It would be better for you to give your Chinese customer the Chinese-English bilingual card. If you don’t have bilingual cards, you can ask local companies to print one or two boxes for your temporary use. We recommend that you have Chinese names on your name cards. It is helpful for your Chinese customers to address you. Learn some greetings in Mandarin Chinese counterparts will be impressed by those foreigners who can speak Chinese, because they equate learning Chinese with a fondness for China. Even one or two words will make a good impression. Business people in China will feel more comfortable with those who have taken the time to learn a bit about China. If you can summon up a few Chinese greetings during your first meeting, then it will be helpful in setting the mood for a good relationship with your Chinese counterparts. Some useful Chinese phrases: Nin hao - How do you do? Wo hen gaoxing ren shi nin - Nice to meet you Xiexie - Thank you Zai jian - Goodbye Gan bei- Cheers (literally: dry cup, i.e. you may be prompting your host to drain their glass) Paying attention to the small details when you see your Chinese counterparts for the first time Generally speaking, shaking hands and changing name cards is the common way to begin a first meeting with your Chinese counterparts. Don’t be too demonstrative, such as trying to hug or kiss your Chinese counterparts, as this will most likely cause embarrassment. Try not to be too talkative, and be sure to take an interest in what your host has to say. Understanding the Chinese way of thinking Most Chinese people are introverted and accustomed to thinking in roundabout ways. So if your Chinese customers keep silent or just give you “may be” answers, please don’t assume that they are not willing to do business with you. Don’t be in too much of a hurry, sincerely express what you want, and give them enough time to think.

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The concept of face This is generally the most sensitive and complicated topic. Taking into account different personalities and ways of thinking, Chinese people generally prefer passive to aggressive, and prefer burying their feelings to expressing them openly. So losing face is a humiliating experience - especially in a business context. Losing face one time can mean losing business with that client or contact forever, as an embarrassment such as this will not be forgotten easily. This is particularly so for more senior officials who might be embarrassed in front of more junior colleagues. So when you run into problems, either in meetings or on the street, raising your voice to solve a bad situation will generally only make things worse. Avoid losing your temper or criticizing China in any way. Likewise, it’s a good idea to avoid political discussions until you know your host fairly well.

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ANNEXES I ADDRESSES 1. Official agencies 1.1 In China a) Brazilian diplomatic and consular representation Embaixada do Brasil 27, Guang Hua Lu, Beijing, 100600-People’s Republic of China Fone: (008610) 6532-2881 Fax: (008610) 6532-2751 E-mail: [email protected]: www.brazil.org.cnEmbaixador: Luiz Augusto de Castro Neves Trade Promotion Bureau SECOM em Pequim 27, Guang Hua Lu, Beijing, 100600-People’s Republic of China Fone: (008610) 6532-2881 Fax: (008610) 6532-2751 E-mail: [email protected] Hours: 9:00 a.m. to 1:00 p.m. 2:30 p.m. to 6:00 p.m. Consulado do Brasil em Shanghai Trade promotion Bureau SECOM em Shanghai 1375 Huaihai Zhonglu, 10/F, Qihua Tower, Shanghai 200031 People’s Republic of China Fone: (008621) 64370110 Fax: (008621) 64370160 E-mail: [email protected]: Ministro João de Mendonça Lima Neto Consular jurisdiction zone: Shanghai, Zhejiang province and Jiangsu province

Consulado Geral em Hong Kong Trade Promotion Bureau SECOM em Hong KongSun Hung Kai centre, 30, Harbour Road Wanchai, Hong Kong S. A. R. China Fone: (00852) 25257002 Fax: (00852) 28772813 E-mail: [email protected]

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http://www.brazil.org.cn/





Embaixador: João Gualberto Marques Porto Jr. Consular jurisdiction zone: Hong Kong and Macao Trade Promotion Bureau SECOM em Taiwan5F., Chung Shan N. Rd., Sec. 6, Shihlin, Taipei, Taiwan Fone: (008862) 28357388 Fax: (008862)28357034 E-mail: [email protected] Director: Paulo A. Pereira Pinto Consular jurisdiction zone: Taiwan

b) Local official agencies available for Brazilian businesspeople China WTO Notification and Enquiry Center, Ministry of CommerceAddress: 2, Dong Chang An Street, Beijing 100731 China Tel: 008610-65197340 Fax: 008610-65197340 www.chinawto.gov.cn

China Council for Promotion of International Trade (CCPIT) China Chamber of International Commerce Address: CCPIT Building, 01 Fuxingmenwai St Beijing - People’s Republic of China 100860 Tel:- (008610) 6801-3344 (Operator), 6803-4830 Fax:- (008610) 6803-0747 6801-1370 E-mail: [email protected]: www.ccpit.org Main Chinese Central Government Agencies Ministry of Foreign Affairs Address: 2 Chaoyangmen Nandajie, Dongcheng District, Beijing 100701, P. R. China Tel. 8610 65961114 Fax. 8610 65963340 Web: http://www.fmprc.gov.cn Minister: Li Zhaoxing The National Development and Reform Commission (NDRC) Address: 38 Yuetannanjie, Xicheng District, Beijing 100824, P. R. China Tel. 8610 68502114 Fax. 8610 68512929 Web: http://www.ndrc.gov.cn Minister: Ma Kai

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http://www.ccpit.org/

http://www.sdpc.gov.cn/

http://www.sdpc.gov.cn/


The State Asset Management Commission (SASAC) Address: 26 Xuanwumen Xidajie Beijing 100053, P.R. China Tel: 8610 63193616 63192000 Fax: 8610 63193624 Web: http://www.sasac.gov.cnMinister: Li Rongrong Ministry of Finance (MOF) Address: 3 Nansanxiang, Shanlihe, Xicheng District, Beijing 100820, P. R. China Tel. 8610 68551114 Fax. 8610 68502466 Web: http://www.mof.gov.cn Minister: Jin Renqing The People's Bank of China (PBoC) Address: 32 Chengfang St. Xicheng District, Beijing 100800, P. R. China Tel. 8610 66194114 Fax. 8610 66015346 Web: http://www.pbc.gov.cn Minister: Zhou Xiaochuan China Banking Regulatory Commission (CBRC) Address: No. 33, Chengfangjie, Xicheng District, Beijing 100800 P. R. China Tel: 8610 66194560 Fax: 8610 66051834 Web: http://www.cbrc.gov.cnDirector: Liu Mingkang State Administration of Foreign Exchange (SAFE) Address: No. 18, Fucheng Road, Huarong Mansion, Haidian District, Beijing 100037 P. R. China Tel: 8610 68402255 Fax: 8610 88402315 Web: http://www.safe.gov.cnDirector: Guo Shuqing Ministry of Agriculture (MOA) Address: 11 Nongzhangguan Nanli, Beijing 100026, P. R. China Tel.: 8610-64192452 64191114 Fax: 8610-64192466 Web: http://www.agri.gov.cnMinister: Du Qinglin Ministry of Commerce (MOFCOM)

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http://www.sasac.gov.cn/

http://www.mof.gov.cn/

http://www.pbc.gov.cn/

http://www.cbrc.gov.cn/

http://www.safe.gov.cn/

http://www.agri.gov.cn/


Address: 2, Chang’an St. (E), Beijing 100731, P. R. China Tel. 8610-65121919, 65198114 Fax. 8610-65198173 Web: http://www.mofcom.gov.cn Minister: Bo Xilai General Administration for Quality Supervision, Inspection and Quarantine (AQSIQ) Address: 9, Madian Rd. (E), Haidian District, Beijing 100088, P. R. China Tel. 8610-82262114 Fax. 8610-82260600 Web: http://www.aqsiq.gov.cn Minister: Li Changjiang Certification and Accreditation Administration of People’s Republic of China (CNCA) Address: 9, Madian Rd. (E), Haidian District, Beijing 100088, P. R. China Tel: 8610 82262759 Fax: 8610 82260753 Web: http://www.cnca.gov.cnDirector: Sun Dawei Customs General Administration Address: 6, Jianguomennei St. Beijing 100730, P. R. China Tel. 8610 64194114, 65195040 Fax. 8610 65126020, 65195170 Web: http://www.customs.gov.cn Director: Mu Xinsheng State Food and Drug Administration Address: 38A, Beilishi Rd. Beijing 100810, P. R. China Tel. 8610 88371540 68311986 68315647 68313973 Fax. 8610 68311982 Web: http://www.sda.gov.cn Director: Zheng Xiaoyu State Administration for Industry and Commerce Address: 8, Sanlihe Rd.(E), Beijing 100820, P. R. China Tel. 8610 68032233, 68022771 Fax. 8610 68020848 Web: http://www.saic.gov.cn Director: Wang Zhongfu State Intellectual Property Office Address: 6, Jinmenqiao Xitucheng Road. Beijing 100088, P. R. China Tel. 8610 620931114 62093289

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http://www.cqi.gov.cn/

http://www.cnca.gov.cn/

http://www.customs.gov.cn/

http://www.sda.gov.cn/

http://www.saic.gov.cn/


Fax. 8610 62019615 Web: http://www.cpo.cn.netDirector: Wang Jingchuan National Tourism Administration Address: 9A, Jianguomennei St. Beijing 100740, P. R. China Tel. 8610 65201720 Fax. 8610 65137871 Web: http://www.cnta.gov.cn Director: Shao Qiwei 1.2 In Brazil a) China’s diplomatic and consular mission: Embaixada da China no Brasil Ses - Av. Das Nações, Lote 51 Cep 70443-900 Brasília - DF Tel :- (061) 3346.4436 / 3346.4426 Fax:- (061) 3242.3299 / 3346.4784 Web: www.embchina.org.br Seção Comercial da Embaixada da China no Brasil Shis, Qd 08, Conj. 05 Casa 20, Lago Sul Cep 71620-255 Brasília - DF Tel :- (061) 3248.1446 Fax:- (061) 3248.2139 E-Mail: [email protected]: www.chinaembaco.org.br Consulado Chinês em São Paulo Rua Estados Unidos, 1071 Jardim América Cep - 01427-001- São Paulo - SP Tel:- (011) 3082.9877 Fax :- (011) 3062.4396 Seção Comercial da Consulado Chinês em São Paulo Rua Bolivia, 107 Jardim América Cep - 01437-040- São Paulo - SP Tel:- (011) 3062.2663 Fax :-(011) 3064.1813 E-Mail: [email protected] jurisdiction zone: Sao Paulo and Parana

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http://www.cpo.cn.net/

http://www/

http://www.chinaembaco.org.br/


http://www.chinaembaco.org.br/



Consulado Chinês no Rio de Janeiro Rua Muniz Barreto, 715 - Botafogo Cep - 22251-090 Rio de Janeiro - RJ Tel:- (021) 2551.4578 Fax:- (021) 2551.5736 E-Mail: [email protected] Seção Comercial da Consulado Chinês no Rio de JaneiroRua Muniz Barreto, 715 - Botafogo Cep - 22251-090 Rio de Janeiro - RJ Tel:- (021) 2551.4878 Fax:- (021) 2551.5736 E-Mail: [email protected] jurisdiction zone: Rio de Janeiro, Minas Gerais, Bahia and Espirito Santo b) Brazilian official agencies

Trade Information Division - DIC Ministry of Foreign Relations 70.170-900 Brasilia – DF – Brazil Phones: (5561) 3411.6390/3211.6391 Fax: (5561) 3322.1935 Web: www.mre.gov.brE-mail: [email protected] Trade Promotion Operations Division - DOC Ministry of Foreign Relations 70.170-900 Brasilia – DF – Brazil Phones: (5561) 3411.6577/3211.6578 Fax: (5561) 3223.2392 Web: www.mre.gov.br

Department for Foreign Trade Operations – DECEX Ministry of Development, Industry and Foreign Trade-MDIC Praça Pio X, 54 – 2° andar sala 202 20.091-040 – Rio de Janeiro – RJ – Brazil Phones: (5521) 3849.1213 and 3849.1211 Fax: (5521) 3849.1180 Web: www.mdic.gov.br 2. Brazilian companies

Empresas, Escritórios e Representações Brasileiras na China

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http://www.mict.gov.br/


Última atualização: maio/ 2006

PEQUIM-Beijing

Nome: China Brazil Int’l Travel Service (CBINT)

Cidade : Beijing

Área de atuação : Turismo

Contato : Ren Zhaohui

Mobil phone: 139 1111 2992

Telefone : (8610) 8251-5630, (8610) 8251-5631

Fax : (8610) 8251-5653

Endereço: B-1905, Cyber Tower 2, Zhongguancun South Ave Beijing -100086

Webpage: www.cbitc.org

Email: [email protected]

Nome: Duarte Garcia, Caselli Guimarães e Terra

Cidade : Beijing

Área de atuação : Consultoria Jurídica

Contato : Heloisa di Cunto

Mobil phone: (8610) 8562-6081

Telefone : (8610) 8562-6082

Endereço: Room 1101b -10, Yabao Lu, Chaoyang District Beijing – 100020

Webpage: www.dgcgt.com.br


Nome: Embraco Snowflake

Cidade : Beijing

Área de atuação : Compressores Compressors

Contato : João C. Lemos

Mobil phone: 138 0106 8369

Telefone : (8610) 8726-9022 (8610) 6725-2244

Fax : (8610) 6725-6825

Endereço: 15, Jiajia Huayuan – Yongwai Beijing - 100075

Webpage: www.embraco.com.brEmail: [email protected] Nome: Embraer

Cidade : Beijing

Área de atuação : Aviação Aviation Contato : Guan Dong Yuan Mobil phone: 139 1050 7272

Telefone : (8610) 6505-5045

Fax : (8610) 6505-5044

Endereço: Room 3617, China World Tower 01 - 01, Jian Guo Men Wai Dajie Beijing – 100004

Webpage: www.embraer.com.br

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http://www.cbitc.org/


http://www.dgcgt.com.br/


http://www.embraco.com.br/


http://www.embraer.com.br/


Email: [email protected] Nome: O Estado de São Paulo Cidade : Beijing Área de atuação : Imprensa Press Contato : Paulo Vicentini

Mobil phone: 134 6697 2971

Telefone : (8610) 6889-1944

Fax : (8610) 6864-2501

Webpage: www.estadao.com.br

Nome: O Globo

Cidade : Beijing

Área de atuação : Imprensa Press Contato : Gilberto Scofield Jr.

Mobil phone: 137 1844 1715

Telefone : (8610) 6530-7628

Fax : (8610) 6530-7628

Endereço: Apt. 2208, Building 1, China Central Place, 89, Jianguo Road, Beijing – 100025

Webpage: oglobo.globo.com

Nome: Petrobrás

Cidade : Beijing

Área de atuação : Petroleira Oil

Contato : Marcelo Castilho

Mobil phone: 135 0118 0226

Telefone : (8610) 6505-9838

Fax : (8610) 6505-9850

Endereço: Room 1221-1225, China World Tower 01 - 01, Jian Guo Men Wai Dajie, Beijing –

100004

Webpage: www.petrobras.com.brEmail: [email protected]

Nome: Restaurante Alameda

Cidade : Beijing

Área de atuação : Restaurante Restaurant Contato : Gabriela Alves Telefone : (8610) 6417-8084 Fax : (8610) 6417-8084 Endereço: Sanlitun Bar North Street, Beijing

Nome: Sadia

Cidade : Beijing

Área de atuação : Restaurante/Carnes

Contato : Celio Cella

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http://www.estadao.com.br/

http://www.petrobras.com.br/


Telefone : (8610) 6501-0524

Fax : (8610) 6501-0524

Endereço: 46, Fuxinmennei Dajie - Xicheng District Beijing – 100031

Webpage: www.sadia.com.brEmail: [email protected] Nome: Smar China

Cidade : Beijing

Área de atuação : Automação

Contato : Mike Wei

Telefone : (8610) 6849-8643

Fax : (8610) 6849-9549

Endereço: Friendship Hotel, Suite 30233 100873 - Beijing

Webpage: www.smar.comEmail: [email protected]

Nome: Tenaris

Cidade : Beijing

Área de atuação : Indústria energética

Contato : Sergio Ferreira

Mobil phone: 135 1103 5506

Telefone : (8610) 6437-6744

Fax : (8610) 6437-6746

Endereço: Room 706, Lido Commercial Bldg, Jichang Road - Jiang Tai Road, Beijing – 100004

Webpage: www.tenaris.comEmail: [email protected]

Nome: TV Globo

Cidade : Beijing

Área de atuação : Televisão Contato : Sonia Bridi / Paulo Zero Mobil phone: 136 8100 9774

Telefone : (8610) 8559-7112

Fax : (8610) 8599-7112

Endereço: Blue Castle Int. Apt, Bld 1 - Apt. B-203, 3, Xidawang Road Beijing - 100026

Webpage: www.tvglobo.com.brEmail: [email protected]

Nome: Varig Brazilian Airlines

Cidade : Beijing

Área de atuação : Linha aérea Airlines Contato : Cesar Yu Mobil phone: 138 0126 0681

Telefone : (8610) 6590-7520

Fax : (8610) 6590-0743

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http://www.sadia.com.br/


http://www.smar.com/


http://www.tenaris.com/


http://www.tvglobo.com.br/



Endereço: 1302 Landmark Tower 2, 8 Dongsanhuan Beilu Beijing - 100004

Webpage: www.varig.com.brEmail: [email protected]

Nome: Varig Brazilian Airlines

Cidade : Beijing

Área de atuação : Linha aérea Contato : Cesar Yu Mobil phone: 138 0126 0681

Telefone : (8610) 6590-7520

Fax : (8610) 6590-0743

Endereço: 1302 Landmark Tower 2, 8 Dongsanhuan Beilu Beijing - 100004

Webpage: www.varig.com.brEmail: [email protected]

XANGAI-Shanghai

Nome: Avenia Inter”l Trading Ltda

Cidade : Shanghai

Área de atuação : Trading

Telefone : (8621) 6236-1300

Fax : (8621) 6236-1200

Endereço: 10A 09, Shanghai Mart , No. 2299, Yan an Rd (W), Shanghai

Nome: Banco do Brasil Shanghai Rep. Office

Cidade : Shanghai

Área de atuação : Bancária

Contato : Sérgio Ribas Camara

Mobil phone: 138 1786 3464

Telefone : (8621) 6289-0707 (8621) 6289-4503

Fax : (8621) 6289-4537

Endereço: Unit 1305, 13th Floor - Shanghai Kerry Centre, 1515, Nanjing Road West, Shanghai -

200040

Webpage: www.itaubba.com.brEmail: [email protected] [email protected]

Nome: Banco Itau BBA Shanghai Rep.Office

Cidade : Shanghai

Área de atuação : Bancária

Contato : Daniel Covre

Mobil phone: 138 1613 8537

Telefone : (8621) 3311-3466

Fax : (8621) 6340-6220

Endereço: Room 1009, 10/F, One Corporate Avenue, 222, Hu Bin Road, Shanghai - 200021

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http://www.varig.com.br/

http://www.varig.com.br/

http://www.itaubba.com.br/



Webpage: www.itaubba.com.brEmail: [email protected]

Nome: BM&F (Bolsa de Mercadorias & de Futuros)

Cidade : Shanghai

Área de atuação : Mercado financeiro

Contato : Guey Chien

Mobil phone: 137 6139 7115

Telefone : (8621) 5037-2886

Fax : (8621) 5037-2885

Endereço: 200 Yincheng (M) Rd, Suite 404, Pudong New Area, Shanghai - 200120

Webpage: www.bmf.com.brEmail: [email protected], [email protected]

Nome: Brasil Steak House

Cidade : Shanghai

Área de atuação : Restaurante

Contato : Luiz Rodrigues

Telefone : (8621) 6437-7288

Fax : (8621) 6437-7288

Endereço: No. 1582, Huai Hai Zhong Rd

Nome: Brastemp

Cidade : Shanghai

Área de atuação : Eletrodomésticos House appliances

Contato : Silas Coelho

Telefone : (8621) 6207-8316

Fax : (8621) 5899-4449

Endereço: Unit 1193, Jing An Plaza, No. 8, Changshu Rd

Webpage: [email protected]

Nome: Bunge

Cidade : Shanghai

Área de atuação : Trading Trading

Contato : Henry Wang

Telefone : (8621) 5306-8100

Fax : (8621) 5306-8098

Endereço: Rm. 1805, Shuion Plaza, No. 333, Huai Hai Zhong Rd, Shanghai

Nome: Caemi International Asia, Ltd. (MBR)

Cidade : Shanghai

Área de atuação : Mineração

Contato : Marcelo Demoro

Telefone : (8621) 5208-0680

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http://www.itaubba.com.br/


http://www.bmf.com.br/



Fax : (8621) 5208-0690

Endereço: Room 4606 Maxdo Centre, No. 8 Xing Yi Road, Hongqiao, Shanghai - 200336

Webpage: www.caemi.com.brEmail: [email protected]

Nome: Centro Comercial Sino Brasileiro

Cidade : Shanghai


Contato : Fernando Kai

Telefone : (8621) 5350-3618

Fax : (8621) 6337-5288

Endereço: 20F-H, No. 33, He Nan South Rd, New Shanghai City Plaza, Shangahi – 200002

Webpage:


Nome: Comexport Brazil - Shanghai Representative Office

Cidade : Shanghai


Contato : João Paulo de Souza Lima

Telefone : (8621) 6236-2131

Fax : (8621) 6236-2707

Endereço: 2299, West Yan’an Road, Shanghai - 200336

Webpage: www.comexport.com.brEmail: [email protected]

Nome: CVRD - Rio Doce Asia Corporation

Cidade : Shanghai

Área de atuação : Mineração

Contato : Renato Paladino

Mobil phone: 137 0176 4138

Telefone : (8621) 5047-0022

Fax : (8621) 5047-1022

Endereço: Room No. 620, Shanghai Center, 1376, Nan Jing Xi Lu, Shanghai - 200040

Webpage: www.cvrd.com.brEmail: [email protected]

Nome: DHB Componentes Automotivos S.A.

Cidade : Shanghai

Área de atuação : Auto Componentes Auto components

Contato : Yang Nai Li

Mobil phone: 13616536168

Webpage: www.dhb.com.br

Nome: Eletrônica Selenium

１０９

http://www.caemi.com.br/



http://www.comexport.com.br/


http://www.cvrd.com.br/


http://www.dhb.com.br/


Cidade : Shanghai

Área de atuação : Eletrônicos

Contato : Henry Osvald

Telefone : (8621) 6328-9099

Fax : (8621) 6328-9099

Endereço: Rm. 2209, No. 200, Ning Hai Dong Lu, Shanghai

Webpage: www.selenium.com.brEmail: [email protected]

Nome: Frontend Cargo Service

Cidade : Shanghai

Área de atuação : Logística

Contato : Reginaldo Lopes

Telefone : (8621) 5109-5905

Fax : (8621) 6322-9955

Endereço: 225, Fujian Zhong Lu, Unit 1405 - Shanghai - 200001

Webpage: www.frontend.comEmail: [email protected]

Nome: Inbeve

Cidade : Shanghai

Contato : David Almeida

Mobil phone: 13816683655

Telefone : (8621) 5382-7878

Fax : (8621) 5382-9670

Endereço: Rm. 1115 - 1120 One Corporate Avenue, 222 Hu Bin Road, Shanghai - 200021

Nome: M. Cassab

Cidade : Shanghai

Área de atuação : Trading Contato : Alexandre Vasto Telefone : (8621) 6876-4011 Fax : (8621) 6876-4007 Endereço: Suntime International Mansion 14F-D, 450, Fushan Rd, Pudong, Shanghai Email: [email protected]

Nome: Noronha Advogados Shanghai Office

Cidade : Shanghai

Área de atuação : Consultoria Jurídica Contato : Bento Delgado Kardos Telefone : (8621) 6876-6311 Fax : (8621) 6876-6312 Endereço: 450 Fushan Road, Suntime International Mansion, 14th Floor- Suite F, Pudong, Shanghai – 200122

１１０

http://www.selenium.com.br/


http://www.frontend.com/




Webpage: www.noronhaadvogados.com.brEmail: [email protected] Nome: Oping Group Ltda.

Cidade : Shanghai

Área de atuação : Consultoria Contato : Sit Si Wei Telefone : (8621) 5466-3988 Fax : (8621) 5466-1218 Endereço: No. 58, Mao Ming Nan Lu, Garden Hotel, Jin Tai Building, Suite 615, Shanghai Webpage: www.oping.comEmail: [email protected]

Nome: Restaurante Latina

Cidade : Shanghai

Área de atuação : Restaurante Contato : Jun Taichi Telefone : (8621) 6320-3566 Fax : (8621) 6311-3905 Endereço: Xintiandi Plaza, Unit 2, House 18, North Block, Lane 181, Taicang Rd., Shanghai

Nome: Restaurante Mesa Manifesto

Cidade : Shanghai

Área de atuação : Restaurante Contato : Charles Cabell Telefone : (8621) 6289-9108 Fax : (8621) 6289-9138 Endereço: No. 748, Julu Lu, Shanghai Webpage: www.mesa-manifesto.comEmail: [email protected] Nome: SMM Group & Co.

Cidade : Shanghai

Área de atuação : Consultoria Contato : Henrique Leite Soares Mobil phone: 13681971250

Endereço: Rm. 104, No. 555 Tai Xing Rd. Wu Tai Apartment Jing An district, Shanghai


Nome: South American Invest

Cidade : Shanghai Área de atuação : Trading Contato : Nie Ren Jie

１１１

http://www.noronhaadvogados.com.br/


http://www.oping.com/


http://www.mesa-manifesto.com/



Telefone : (8621) 6471-2588

Fax : (8621) 6445-9573

Endereço: No. 718, Yongjia Rd, Shanghai, 200031

Email: [email protected] Nome: Varig Cargo

Cidade : Shanghai

Área de atuação : Logística Contato : Robert Hisatomi Telefone : (8621) 6249-1375, (8621) 6249-1376

Fax : (8621) 6249-1368

Endereço: Aviation Center, Rm, 325, No. 1600, Nanjing (W), Shanghai


Nome: Vicunha Asia Textiles Intl. Trading

Cidade : Shanghai

Área de atuação : Trading Contato : Wenny Lin Telefone : (8621) 5133-6886

Fax : (8621) 5133-6885

Endereço: 13F-1311 (Zhong Rong Plaza), No.1088, South Pudong Rd. Shanghai

Webpage: www.asiavicunha.com Email: [email protected]

Nome: Yi Cai He Exciting Ventures International Ltd

Cidade : Shanghai

Área de atuação : Trading Contato : Winston Ling Telefone : (8621) 6447-8656 Fax : (8621) 5295-6595 Endereço: Rm. D-232, Shanghai Jiahua business Center, No. 808 Hongqiao Road, Shanghai Email: [email protected]

OUTRASLOCALIDADES –other locations

Nome: Marcopolo S.A.

Cidade : Changzhou

Área de atuação : Carrocerias Chassis

Contato : Paulo Guarese

Telefone : (86519) 5029-236

Fax : (86519) 5029-235

Endereço: 4B, Building B, No. 18, Rd. Hengshan, Changzhou, Jiangsu

Webpage: www.marcopolo.com.brEmail: [email protected]

１１２


http://www.asiavicunha.com/



http://www.marcopolo.com.br/



Nome: Paramont (Asia) Ltd.

Cidade : Dongguan

Área de atuação : Couro e calçados Leather and footwear Contato : Ari Filipini Telefone : (86769) 250-4100 / 249-1889

Fax : (86769) 248-1747

Endereço: 3&4/F, Surveying&Mapping Building, East Town Road (Woling), Dongguan,

Guanzhou – 511700

Email: [email protected] Nome: Embraer Harbin

Cidade : Harbin

Área de atuação : Aviação Contato : Roberto Rossi de Souza Mobil phone: 133 5986 3001

Telefone : (86451) 5390-8988

Fax : (86451) 8650-2511

Endereço: 15, Youxie St - Pingfang District, Harbin – 150066

Webpage: www.embraer.com.brEmail: [email protected]

Nome: Mimosa Leathers Ltd.

Cidade : Nanhai

Área de atuação : Couro e calçados Contato : Celso Kiefer Telefone : (86757) 566-9530/1

Fax : (86757) 566-9529

Endereço: Zhoucun Administrative District, Lishui Town, Nanhai, Guangdong

Webpage: www.mimosaleathers.comEmail: [email protected]

Nome: Weg (Nantong) Electric Motor Manufacturing Co., Ltd.

Cidade : Nantong

Área de atuação : Motores Contato : Michael Hazi Telefone : (0513) 8592-1397,(0513) 8598-9329 Fax : (0513) 8592-1310

Endereço: No. 128, Xin Kai Nan Lu, Nantong Economic Development Zone, Nantong, Jiangsu

– 226010

Webpage: www.weg.com.brEmail: [email protected]

Nome: Gradiente China Office Ltd - Shenzhen Representative Office

Cidade : Shenzhen

１１３


http://www.embraer.com.br/


http://www.mimosaleathers.com/

http://www.weg.com.br/



Área de atuação : Eletrônicos Contato : Roberto Diniz Mobil phone: 138 2877 5514

Telefone : (86755) 3336-6301

Fax : (86755) 3336-6302

Endereço: Unit G.H, 22nd Floor Time Financial Center. 4001 Shennan Road, Futian District,

Shenzhen - 518034

Webpage: www.gradiente.comEmail: [email protected]

Nome: Shanxi Telecommunications Equipment Co. Ltd.

Cidade : Taiyuan

Área de atuação : Telecomunicações Contato : Wen Hsing Teng Telefone : (86351) 708-1234 Fax : (86351) 708-1234 Endereço: 378, West Xuefu St. – Taiyuan， Shanxi - 030006 Webpage: Email: [email protected]

Nome: Tianjing General Nice Coke & Chemicals Co. Ltd

Cidade : Tianjing

Área de atuação : Produtos química Contato : He Jinhui Telefone : (8622) 2532.3607,(8622) 2532.3608 Fax : (8622) 2532.5776

Endereço: Room B - 21st Floor，Int’l develop. Build Teda， Tianjing Nome: CafeChocolat

Cidade : Xian

Área de atuação : Café Contato : Alexandre Monteiro Mobil phone: 131 5211 4702

Telefone : (8629) 6296-1108

Fax : (8629) 6296-1108

Endereço: 33, Keji Road, HiTech Industries Development Zone Xian – 710075

Webpage: www.cooxupe.com.brEmail: [email protected]

EMPRESAS E REPRESENTAÇÕES BRASILEIRAS EM HONH KONG Caemi International Asia, Ltd. Representante: Sr. Marcelo Duarte Room 605, Discovery Bay Plaza

１１４

http://www.gradiente.com/



http://www.cooxupe.com.br/


Discovery Bay - Lantau Island Tel : (00852) 2987-6687 Fax: (00852) 2987-5287 E-mail: [email protected] Área de atuação: comércio de ferro e celulose Varig Brazilian Airlines Representante: Sr. Cesar Yu 29th Floor, Gloucester Tower, The Landmark,11, Pedder Street Hong Kong Tel. (Reservation): (00852) 2511-1234 Tel: (00852) 2511-1828 Fax: (00852) 2519-3357 E-Mail: [email protected]Área de atuação: companhia aérea AAA, Arcoiris Asia Americas LtdRepresentante: Sr. D. Liu Room 1201 Trinity Hse, 165-171 Wanchai Road Wanchai - Hong Kong Tel: (00852) 2891-4070/5014 Fax: (00852) 2834-0677 Área de atuação: trading AGC International (Longco Consultants) Representante: Sr. Ricardo Walter 11/f, Room 3, Sungib Industrial Centre, 53, Wong Chuk Hang Road Aberdeen - Hong Kong Tel: (00852) 2832-7038 Fax: (00852) 2518-7842 E-mail: [email protected]Área de atuação: consultoria Sino – Brasil Trading Company Representante: Sra. Alison Gia Room 1503, Asia Orient Tower, Town Place, 33, Lockhart Road Wanchai - Hong Kong Tel: (00852) 2527-4937 Fax: (00852) 2527-4969 E-mail: [email protected]Área de atuação: trading Samarco Asia Limited 1310, 13/F Lippo Centre Tower Two

１１５




89 Queensway, Hong Kong Tel: (00852) 2868-3380 Fax: (00852) 2868-3015 www.samarco.com.brÁrea de atuaçào: extração mineral Paramont (Asia) Ltd. Contact: Ari Filipini 12/F Rm 1205 Tower 2, China Hong Kong City, 33 Canton Road, Kowloon, Hong Kong Tel: (00852) 2375-1332 Fax: (00852) 2736-5222 Business Scope: Shoe Making 3. Chambers of commerce 3.1 In China China Council for Promotion of International Trade China Chamber of International Commerce CCPIT Building, 01 Fuxingmenwai St Beijing - People’s Republic of China 100860 Tel: (008610) 6801-3344 (Operator), 6803-4830 Fax: (008610) 6803-0747 6801-1370 E-mail: [email protected] Website:www.ccpit.org 3.2 In Brazil Conselho Empresarial Brasil-China (CEBC) Secretario-Executivo , Renato Amorim Rua Santa Luzia, n 651 / 30 andar CEP 20030.041 Rio de Janeiro - RJ Brasil Tel: (021) 32124350 Fax: (021) 32124351 E-mail: [email protected]:www.cebc.org.br/ 4. Main local class entities China Chamber of Commerce for Import and Export of Machinery and Electronic Products CCCME

１１６

http://www.samarco.com.br/


http://www.ccpit.org/


http://www.cebc.org.br/


904, 9th Floor, Building 12, Panjiayuan Office Building, Panjiayuan Nanli, Chaoyang District, Beijing 100021China Tel: (008610) 58280861 Fax: (008610) 58280860 E-mail: [email protected]: www.cccme.org.cn China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce and Animal By-Products CFNA No. 21, Xitangzi Lane, Dongcheng District, Beijing 100006 Tel: (008610) 65132567,65132390 Fax: (008610) 65227911,65139064 E-mail: [email protected]:www.cccfna.org.cn China Chamber of Commerce for Import and Export of Textile CCCT 7/F., Building 12, Panjiayuannanli, Beijing 100021 Tel: (008610) 67739291 67739270 (consulting) Fax: (008610) 67739206 E-mail: [email protected]:www.ccct.org.cn/english/default.htm China Chamber of Commerce for Import and Export of Light Industrial Products & Arts & Crafts CCCLA Add: 10/F., Building 12, Panjiayuannanli, Beijing 100021 Tel: (008610) 67732686 67735207 67732707 Fax: (008610) 67732698 67732689 E-mail: [email protected] Website:www.moftec.gov.cn/moftec_en/coc/coc_01_en.html China Chamber of Commerce of Metals, Minerals & Chemicals Import and Export CCCMC 17th Floor, Prime Tower, No. 22, Chawai Street, Chaoyang District, Beijing 100020 China Tel: (008610) 65880325 65882823 Fax: (008610) 65882825 E-mail: [email protected]:www.cccmc.org.cn China Chamber of Commerce of Medicines & Health Products Import and Export CCCMHPIE 8/F., Building 12, Panjiayuannanli, Beijing 100021 Tel: (008610) 67734761 Fax: (008610) 67734768 E-mail: [email protected]:www.cccmhpie.org.cn/

１１７


http://www.cccme.org.cn./


http://www.cccfna.org.cn/


http://www.ccct.org.cn/english/default.htm

http://www.moftec.gov.cn/moftec_en/coc/coc_01_en.html


http://www.cccmc.org.cn/


http://www.cccmhpie.org.cn/


China International Contractors Association CHINCA 10th Floor, Zhongjian Mansion, No. 15, Sanlihe Road, Haidian District, Beijing 100037 Tel: (008610) 88083070 88083099 Fax: (008610) 88083100 E-mail: [email protected]:www.chinca.org/english/Index.htm 5. Main banks Banco do Brasil – Hong Kong Representante: Sr. Sergio A. M. Leite Unit 3601, 36/F., Tower 2, Lippo Center, 89 Queensway, Admiralty Hong Kong (SAR) China Tel: (00852) 2521-6411

E-mail: [email protected] Local Banks in China Bank of China No. 1, Fuchengmennei Dajie Beijing 100818 China Tel：008610-66016688 66011829

Mr. Zhang Weidong, General Manager Financial Institutions, Bank of China Tel: 008610-66596688 Fax: 008610-66016869 Website:www.bank-of-china.com

Bank of China Sao Paulo Tel: (005511) 32831079 Fax: (005511) 32832730 E-mail: [email protected] Industrial & Commercial Bank of China

Tel：0086-10-68257770 Fax: 0086-10-68257774 Website:www.icbc.com.cn

Fax: (00852) 2587-9990

Fax: 008610-66014096

Bank of China has a representative office in Sao Paulo

No. 15, Cuiwei Lu, Beijing 100036 China

１１８


http://www.chinca.org/english/Index.htm


Agricultural Bank of China 5./F. Yu Long Hotel, 40 Fucheng Road, Beijing 100036 China Tel：0086-10-68475346 Fax: 0086-10-68475329 Website:www.abocn.com China Construction Bank 25, Finance Street, Beijing 100032 China Tel：0086-10-67597208 Fax: 0086-10-67598618 Website:www.ccb.com.cn CITIC Bank No. 8, Chaoyangmen North Street, Dongcheng District, Beijing 100027 China Tel：008610-65542388 Fax: 008610-65542181 Website:www.citicib.com.cn Bank of Communications of China No. 18 Xianxia Lu, Shanghai 200336 China Tel：0086-21-62751234 Fax: 0086-21-62756784 Website:www.bankcomm.com Everbright Bank of China No. 6 Fuxingmenwai Dajie, Beijing 100045 China Tel：0086-10-68565577 Fax: 0086-10-68561260 Website:www.cebbank.com Huaxia Bank No. 111, Xidan North Street, Beijing 100032 China Tel: 0086-10-66151199 Fax: 0086-10-66188484 Website:http://www.hua-xiabank.com Minsheng Bank 4, Zhengyi Road, Dongcheng District, 100006 Tel: 008610-65226699-6060 Fax: 008610-65596883 Website: www.cmbc.com.cn Merchant Bank China Merchants Bank Tower, No.7088, Shennan Boulevard, Shenzhen 518040 China

１１９

http://www.abocn.com/

http://www.ccb.com.cn/

http://www.citicib.com.cn/

http://www.bankcomm.com/

http://www.cebbank.com/

http://www.hua-xiabank.com/

http://www.cbbc.com.cn/


Tel: 0086755-3198888 Fax: 0086755-3195555/ 3195777 Website: www.cmbchina.com Guangdong Development Bank 83, Nonglin Xia Road, Guangzhou 510080 China Tel: 0086-20- 87310888 Fax: 0086-20-87310779 Website: http://ebank.gdb.com.cn Shenzhen Development Bank Ltd. No. 5047 First Floor, Shenzhen Development Bank Plaza, Shennan East Road, Shenzhen 518011 China Tel：0086-755-2088888 ext. 8120 Fax: 0086-755-2081816 Website: http://www.sdb.com.cn/ Shanghai Pudong Development Bank No. 50 Ningbo Lu, Shanghai 200002 China Tel：0086-21-63296188 Fax: 0086-21-63232036 Website: http://www.spdb.com.cn/ Asian Development Bank Beijing Office Website: www.asiandevbank.org World Bank Beijing Office 9th Floor, Building A, Fuhua Mansion, No. 8, Chaoyangmen Beidajie, Dongcheng District, Beijing 100027 China Tel: 008610-65543361 Fax: 008610-65541686 External affairs officer Website: www.worldbank.org.cn 6 Main fairs and exhibits WOODMAC CHINA International Forestry and Woodworking Machinery and Supplies Exhibition FURNITEK CHINA International Exhibition of Machinery and Accessories for Furniture Production, Upholstery and Furnishings WOODBUILD CHINA International Exhibition of Timber and Wood Products for Furniture and Building Industries Venue: Shanghai Time: February or March

１２０

http://www.cmbchina.com/

http://ebank.gdb.com.cn/

http://www.sdb.com.cn/

http://www.spdb.com.cn/

http://www.asiandevbank.org/

http://www.worldbank.org.cn/


Timing: Annual Cost of stand: US$3330 (9 square meters) Website: www.woodmacchina.netWebsite: www.furnitekchina.netWebsite: www.woodbuildchina.netOrganizer: Hong Kong Exhibition Services Room A803, Singular mansion, No. 318-322 Xian Xia Road, Shanghai 200336 China Tel: 008621-62095209 Fax: 008621-662095210 E-mail: [email protected] CHINA BUILDING China International Exhibition for Building Materials, Building System, Construction Machinery Venue: Beijing Time: February or March Timing: Annual Cost of stand: US$2970 (9 square meters) Website: www.chinabuilding.cn.netOrganizer: CHINSTASR Fair Co. Ltd. Suite 1221/1223, Huatong Building, No. B19, Chegongzhuang West Street, Beijing 100044 China Tel: 008610-88018328 Fax: 008610-88018320 E-mail: [email protected]@chinstar.com STONETECH China International Stone Processing Machinery, Equipment and Products Exhibition Venue: alternating between Beijing and Shanghai Time: March or April Timing: Annual Cost of stand: US$3330 (9 square meters) Website: www.stonetechfair.comOrganizer CCPIT Building Materials Sub-Council 11 Sanlihe Road, Baiwanzhuang,Beijing 100831, P.R.China Tel: 0086-10-68362774 Fax: 0086-10-68362773 E-mail: [email protected] [email protected]: Mr. Eric Wu AUTOMECHANIKA China International Trade Fair for Car Workshop and Service Station

１２１

http://www.woodmacchina.net/

http://www.furnitekchina.net/

http://www.woodbuildchina.net/


http://www.chinabuilding.cn.net/



http://www.ciec-exhibition.com.cn/




Equipment, Auto Spare Parts and Accessories Venue: Beijing Time: March Timing: Biannual Cost of stand: US$4740 (12 square meters) Website: www.automechanika.messefrankfurt.comOrganizer Messe Frankfurt (HK) Ltd., Hong Kong Tel 00852-2238 9926 Fax 00852-2598 8771 [email protected]: Mr. Perry Tang CHIC China International Clothing & Accessories Fair Venue: Beijing Time: March Timing: Annual Cost of stand: US$ 2500 (9 square meters) Website: www.chiconline.com.cnOrganizer: China World Trade Center Co. Ltd. Level 2, Exhibition Hall, No. 1 Jain Guo Men Wai Avenue Beijing 100004 China Tel: 008610-65050546 Fax: 008610-65053260 E-mail: [email protected]: Mr. Jordan Zeng SIAL China International Food Products and Beverage Exhibition Venue: alternating between Beijing and Shanghai Time: April Timing: Annual Cost of stand: US$2600 (9 square meters) Website: www.sialchina.comOrganizer: Exposium China Plaza, suite 710-20, Chaoyangmenwai Dajie, Beijing100020 China Tel: 008610-65801186 Fax: 008610-65801187 E-mail: [email protected]: Ms. Lillian Lee AGRO-FOODTECH China Venue: Beijing Time: April

１２２

http://www.ciec-exhibition.com.cn/


http://www.chiconline.com.cn/


http://www.sialchina.com/



Timing: Annual Cost of stand: US$ 3360 (12 square meters) Website: www.ccpit-ssa.org.cnOrganizer: CCPIT Agricultural Sub-Council Room 308, Building 20, Maizidian Street, Chaoyang District, Beijing 100026 China Tel: 008610-64194401 Fax: 008610-65918986 E-mail: [email protected] CITEX China International Import Exhibition Venue: Guangzhou Time: May Timing: Annual Cost of stand: US$3510 (9 square meters) Website: www.citex.bizOrganizer: Global Exhibit & Events Ltd. (U. K.) Suite 2315, 23rd/F., South Tower, World Trade Centre, 371 Huan Shi Dong Road, Guangzhou 510095 China Tel: 008620-87318285 Fax: 008620-87694435 E-mail: [email protected]: Johan Theron FHC International Exhibition for the Food, Drink, Hospitality, Foodservice, Bakery and Retail Industries Venue: Shanghai Time: September Timing: Annual Cost of stand: US3420 (9 square meters) Website: www.fhcchina.comOrganizer: Hong Kong Exhibition Services Room A803, Singular mansion, No. 318-322 Xian Xia Road, Shanghai 200336 China Tel: 008621-62095209 Fax: 008621-662095232 E-mail: [email protected] China International Leather Exhibition Venue: Shanghai Time: September Timing: Annual Cost of stand: US2000 (9 square meters)

１２３

http://www.ccpit-ssa.org.cn/


http://www.citex.biz/


http://www.fhcchina.com/



Organizer: CMP Asia Ltd. 17 F., China resources Building, 26 harbor Road, Wanchai, Hong Kong Tel: 00852-28276211 Fax: 00852-28277831 E-mail: [email protected] China International Jewellery Fair Venue: Beijing Time: October Timing: Annual Cost of stand: US2000 (9 square meters) Website: www.chinagems.com/associationOrganizer: Gemmological Association of China Exhibition Co. Ltd. Room 602, No. 5 A, West Yuetan Street, Xicheng District, Beijing 100045 China Tel: 008610-68040679 Fax: 008610-68045040 E-mail: [email protected] MetalsFair China International Metals Industry Fair Venue: Guangzhou Time: November Timing: Annual Cost of stand: US1500 (9 square meters) Website: www.metalsfair.comOrganizer: CCPIT Metallurgical Council No. 46 Dongsi Xidajie Beijing 100711 China Tel: 008610-85117978 Fax: 008610-65248384 E-mail: [email protected] China International Sporting Goods Show Venue: Shanghai and Beijing Time: June and October Timing: Semiannual Cost of stand: US$ 1800 (9 square meters) Website: www.sportshow.com.cnOrganizer: Equipment Department of the State Sport General Administration of China 5, Tiyuguan Road, Chongwen District, Beijing 100763 China Tel: 008610-67192832/67102728 Fax: 008610-67102689

１２４


http://www.chinagems.com/association


http://www.metalsfair.com/


http://www.sportshow.com.cn/


E-mail: [email protected] CIEME China International Equipment Manufacturing Exposition Venue: Shenyang Liaoning province Time: September Timing: Annual Cost of stand: US$ 900 (9 square meters) Website: www.cieme.orgOrganizer: Room 202 & Room 415, No. 256, Shifu Road, Shenyang, Liaoning Province China Tel: 008624-22522908 Fax: 008624-22522800 E-mail: [email protected] Zhuhai International Airshow (China International Aviation and Aerospace Exhibition) Venue: Zhuhai, Guangdong province Time: November Timing: biannual Cost of stand: US$ 4275 (9 square meters) Website: www.airshow.com.cnOrganizer Zhuhai Inertantional Airshow Company Address: China International Aviation and Aerospace Exhibition Centre, Zhuhai Airport, Zhuhai City, Guangdong 519040 China Tel: 0086756-7768622 7768624 Fax: 0086756-7768600 E-mail: [email protected] For further information on any official Brazilian participations in local fairs and exhibits, refer to: Fairs and Tourism Section (SFT) Ministry of Foreign Relations 70.170-900 Brasilia – DF – Brazil Phones: (5561) 3411.6394/3411.6395 Fax: (5561) 3322.0833 Website: http://www.mre.gov.br 7. Communications Main newspapers Beijing China Daily (in English)

１２５


http://www.cieme.org/


http://www.airshow.com.cn/




www.chinadaily.com.cn China Business Weekly (in English) www.businessweekly.com.cn International Business Daily (sponsored by the Ministry of Commerce) www.ibdaily.com.cn People’s Daily (sponsored by the Communist Party of China) www.peopledaily.com.cn China Business Times (sponsored by All China Industry & Commerce Association) China Economic Times (sponsored by State Council Development Research Center) www.cet.com.cn China Trade News (sponsored by China Council for the Promotion of International Trade - CCPIT) www.chinatradenews.com.cn Finance Times (sponsored by People’s Bank, Commercial and Industrial Bank, Agricultural Bank, Bank of China, Construction Bank, People’s Insurance Company, Communication Bank, CITIC Bank) www.financialnews.com.cn Economic Daily (sponsored by the State Council) China Youth Daily www.cyd.com.cn Science and Technology Daily (sponsored by Ministry of Science and Technology) www.stdaily.com Can Kao Xiao Xi (Reference News) (sponsored by Xinhua News Agency) Economic Information Daily (sponsored by Xinhua News Agency)

１２６

http://www.chinadaily.com.cn/

http://www.businessweekly.com.cn/

http://www.ibdaily.com.cn/

http://www.peopledaily.com.cn/

http://www.cet.com.cn/

http://www.chinatradenews.com.cn/

http://www.financialnews.com.cn/

http://www.cyd.com.cn/

http://www.stdaily.com/


Beijing Daily www.beijingdaily.com.cnBeijing Youth Daily Shanghai Shanghai Star (in English) Wehui Daily www.whb.online.sh.cn Guangzhou Yangcheng Evening Paper www.ycwb.com.cn Nanfang Weekend www.nanfangdaily.com.cn Main magazines Readers (like Reader's Digests in the US.) Qingnian Wenzhai (Youth Digests) Family Magazine Group Beijing China Food Industry Traveler Magazine http://www.etravelermagazine.com/ Travel China http://www.trendsmag.com Deep www.we365.com Caijing (financial publication) TV stations

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http://www.beijingdaily.com.cn/

http://www.whb.online.sh.cn/

http://www.ycwb.com.cn/

http://www.nanfangdaily.com.cn/

http://www.etravelermagazine.com/

http://www.trendsmag.com/

http://www.we365.com/


Over 300 million Chinese households own television sets. Penetration rates have exceeded 90% nationwide and reached 100% in urban areas. CCTV (China Central Television Station) www.cctv.com BTV (Beijing Television Station) www.btv.org Shanghai Television Station Guangzhou Television Station Zhenjiang Satellite Television Located in the densely populated Yangtse River delta, it has a potential audience of 660 million viewers. Sichuan Guangdong and Guizhou Satellite Television The three satellite televisions have 450 million viewers respectively. Phoenix Satellite Television The Hong Kong listed TV has Phoenix Chinese Channel, which maintains 42 million mainland audience. Cable TV China has more than 90 million cable subscribers and the figure set to rise to at lease120 million by 2005. Shanghai Cable Network Beijing Cable TV Radio stations In 2001, China had 296 national, provincial and municipal radio stations, and 1,272 country-level radio stations-with a national penetration rate of 92%. The penetration rates are targeted to rise to 95% by 2005 and 97% by 2010. China's more than 1000 radio stations provide sound advertising opportunities for foreign companies, particularly in some remote areas. Both medium-sized firms with limited advertising budgets and multinationals looking to extend their advertising reach turn to radio.

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http://www.cctv.com/

http://www.btv.com/


Unlike television advertisement, radio advertisements are guaranteed to air, and can be produced or changed within a day's notice. Entry costs are low and production is cheap, at only about $200 for a 30-second slot. Beijing CNR (China National Radio) CRI (China Radio International) Beijing Radio Music Channel Beijing Radio Traffic Channel Shanghai Shanghai Radio News Channel Shanghai Radio Music Channel Oriental Radio Music Channel Guangzhou Guangzhou Radio Station Main advertising agencies The Chinese Advertising Association (CAA) estimates that China has some 47,000 advertising companies with an annual turnover of some RMB37 billion (US$4.5 billion). These firms report an average turnover of US$96,000 compared with the US$15 billion recorded by some global players. Most multinational corporations in China use international agencies that they are familiar with or with which they already have a global relationship. The Chinese Advertising Association (CAA) Machinery Plaza, No. 248, Guanganmen Street, Beijing 100055 China Tel: 8610-63317500 Fax: 8610-63317506 www.china-aa.org Advertising Agents Ogilvy & Mather Beijing Address: 4/F., Beijing Blue Diamond Business Tower No. 1 Shengguzhonglu, Dongcheng District, 100029 China Tel: 8610-64436488 Fax: 8610-64436498

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http://www.chian-aa.org/


www.ogilvy.com.cn Ogilvy & Mather Shanghai Address: 31/F., Westgate Tower, 1038 Nanjing West Road, Shanghai 200041 China Tel: 8621-62183009 Fax: 8621-62184199 www.ogilvy.com.cn McCann-Erickson Guangming, Beijing Address: 6/F., Dabei Plaza, Jianguomenwai Street, Beijing 100022 China Tel: 8610-65683300 Fax: 8610- 65687555 www.mccann.com Grey China, Beijing Address: Room 607, Tower W-3, Oriental Plaza, Dongcheng District, Beijing 100738 Tel: 8610-85181988 Fax: 8610-85185500 www.grey.com.hk Beijing Dentsu Advertising, Beijing Address: 10-11/F., Block F, Fuhua Mansion, 8 Chaoyangmen Beidajie, Beijing 100027 China Tel: 8610-65542205 Fax: 8610-65542098 www.dentsu.com.cn China National United Advertising Corp. Address: 97 A, Xuanwumen Street, Beijing 100031 China Tel: 8610-63074228 Fax: 8610-63074227 www.cnuac.com.cn 8. Consulting services in marketing Consumer goods AC Nielsen Room 1201, Full Link Plaza, 18 Chaoyangmenwai Avenue, Beijing 100020 China Tel: 008610-6588-0188 Fax: 008610-6588-0199 www.acnielsen.com.hkwww.acnielsen.com.cn Asia Market Intelligence (AMI)

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http://www.ogilvy.com.cn/

http://www.ogilvy.com.cn/

http://www.mccann.com/

http://www.grey.com.hk/

http://www.dentsu.com.cn/

http://www.cnuac.com.cn/

http://www.acnielsen.com.hk/

http://www.acnielsen.com.cn/


9/F. Leighton Centre, 77 Leighton Road, Causeway Bay, Hong Kong Tel: 00852-2881-5388 Fax: 00852-2881-6521 www.ami-group.com Gallup China 14/F., Ruoy Chai International Building, 8 Yongandongli, Jianguomenwai, Beijing 100022 China Tel: 008610-8528-8880 Fax: 008610-8528-8860 www.gallup.comwww.gallup.com.cn Taylor-Nelson-Sofres (TNS) Room 326, South Office Tower, Kerry Centre, 1 Guanghua Road, Beijing 100021 China Tel: 008610-8529-8200 Fax: 008610-8529-8188 www.tnsofres.com CTR 8/F., CITV, 9 Yangfangdian Road, Beijing 100038 China Tel: 008610-6395-0076 Fax: 008610-6395-0078 www.cvsc-tns.com 9. Obtaining required documents 9.1 Tariffs Customs Import and Export Tariff of the People’s Republic of China (2006 Version) Decade Coding of HS, Customs Control Conditions, Detailed Customs Duties Levied on Commission Basis Compiled by the editorial department of the Customs Import and Export Tariff of the People’s Republic of China Published by Economic Science Publishing House Address: No. 28 A, Fucheng Road, Haidian District, Beijing 100036 China Tel: 008610-88191217 Fax: 008610-88191540 E-mail: [email protected]: RMB 260 (US$ 33) China WTO Notification and Enquiry Center, Ministry of Commerce Address: 2, Dong Chang An Street, Beijing 100731 China Tel: 008610-65197340 Fax: 008610-65197340

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http://www.ami-group.com/

http://www.gallup.com/

http://www.gallup.com.cn/

http://www.tnsofres.com/

http://www.cvsc-tns.com/



www.chinawto.gov.cn 9.2 Trade Statistics China Customs Statistic Monthly Compiled by General Administration of Customs of the People’s Republic of China Published by Economic Information & Agency, Hong Kong Address: 342 Hennessy Road, 1—16/F., Hong Kong Tel: 00852-25722289 Fax: 00852-28342985 E-mail: [email protected]: US$145 China Customs Statistics Yearbook Compiled by General Administration of Customs of the People’s Republic of China Published by Goodwill China Business Information Limited Unit 1007A, 10/F, Tower 1, Lippo Centre, 89 Queensway Admiralty, Hong Kong Tel: 00852-2973 9133 Fax: 00852-2530 9820 E-mail: [email protected]: US$230 10. Transportation companies to/from Brazil 10.1 Sea companies Megatranz Transportes Ltd. Shanghai Representative Office Contact: Mr. Reginaldo Lopes 227, Huangpi Bei Lu –18th Floor Unit 12 Shanghai 200003 China Tel: (008621) 6375-8199 Fax: (008621) 6375-8132 E-Mail: [email protected]Área de atuaçào:: Freight Forwarder COSCO Container Lines Ltd., Co. Tel: (008621) 65842692 Fax: (008621) 65849303 Contact: Mr. Ding Jian From Shanghai to Santos Approximately 42-43 days, departure every Friday From Shanghai to Victoria Approximately 46-47 days, departure every Friday

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http://www.eiahk.com/


http://www.b2bchina.com.cn/


http://www.megatranz.com/


COSCO do South America Ltda. Tel: (005511) 31772888 Fax: (005511) 31772877 SINOTRANS Tel: (005521) 25312036 Fax: (005521) 25312817 E-mail: [email protected] PANALPINA China Ltd. Beijing Office Tel: (008610) 64623781-5 Fax: (008610) 64605639 Contact: Miss Tracy Deng 1) From Xingang, Tianjin to Santos Approximately 40 days, departure every Friday 2) From Xingang, Tianjin to Salvador Approximately 40 days, departure every Friday 3) From Xingang, Tianjin to Rio de Janeiro Approximately 40 days, departure every Friday Trans-Link Exhibition Forwarding (HK) Ltd. 29/F., Fook Lee Commercial Central, Town Place, 33 Lockhart Road, Wanchai, Hong Kong Tel: 00852-28662505 Fax: 00852-28662421 E-mail: [email protected] 10.2 Air companies Varig Brazilian Airline (Varig Log) Representative: Robert Hisatomi Room 325, Aviation Center, No. 1600, Nanjing West Road, Shanghai 200040 China Tel: (008621) 6249-1375/1376/1369 Fax: (008621) 6249-1368 E-mail: [email protected] Varig Brazilian Airlines Representante: Sr. Cesar Yu 29th Floor, Gloucester Tower, The Landmark,11, Pedder Street Hong Kong Tel. (Reservation): (00852) 2511-1234 Tel: (00852) 2511-1828 Fax: (00852) 2519-3357 E-Mail: [email protected]Área de atuação: companhia aérea

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http://www.trans-link.com.hk/


http://www.variglog.com/


Air China Air China will establish an office in Sao Paulo The following airlines have offices in both China and Brazil Air France Alitalia British Airways Air Canada Lufthansa Northwest Airlines Swissair 11. Shipment inspection China Certification & Inspection Group China Certification & Inspection (Group) Co. Ltd. 8/F., Tower B, No. 9, Madian Dong Lu, Haidian District, Beijing 100088 China Tel: 8610-82262859 Fax: 8610-82260870 E-mail: [email protected]: Mr. Yu Weizhou, Division Director, Inspection Services CCIC South America Inc., Ltda. (CCICSA) Address: Rua Ximbô 19, Aclimacâo Sâo Paulo-SP, Brasil, S.A. Cep 04108-040 Tel and Fax: 0055-11-55755104 E-mail: [email protected] [email protected]: Xu Zheng II. TRANSPORTATION AND COMMUNICATIONS WITH BRAZIL 1. Information on transportation Sea transportation To obtain current, specific information on sea transportation between Brazil and China, you should post your inquiries to the sea transportation companies listed in Annex I, section 10. 2. Communications: rates (China) Telephone: fee from Beijing to Brazil is US$ 1 per minute.

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http://www.ccic.com/




III. PRACTICAL INFORMATION

The daily trading price of the US dollar against the RMB in the inter-bank foreign exchange market will continue to be allowed to float within a band of 0.3 percent around the central parity published by the People's Bank of China, while the trading prices of the non-US dollar currencies against the RMB will be allowed to move within a certain band announced by the People's Bank of China.

Foreign trade is conducted mainly in the metric system. China uses the metric system for all weights and measures, including temperature. If you are not familiar with metric measures, a pocket conversion calculator or chart will come in handy.

1. Currency The currency of China is the Renminbi (RMB). The basic unit is the yuan (￥), which is divided into ten jiao. The smallest subdivision is fen. One jiao equals10 fen; one yuan equals 100 fen. Paper notes are issued in denominations of ￥100, ￥50, ￥20, ￥10, ￥5, ￥2 and ￥1 and 5, 2 and 1 jiao. Coins are issued in denominations of ￥1, and 5, 1 jiao, 5, 2 and 1 fen. Starting from July 21, 2005, China reformed the exchange rate regime by moving into a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies. RMB is no longer pegged to the US dollar and the RMB exchange rate regime is improved with greater flexibility.

The People's Bank of China will announce the closing price of a foreign currency such as the US dollar traded against the RMB in the inter-bank foreign exchange market after the closing of the market on each working day, and will make it the central parity for the trading against the RMB on the following working day.

The exchange rate of the US dollar against the RMB was adjusted to 8.11 yuan per US dollar at the time of 19:00 hours of July 21, 2005.

RMB (renminbi ou dinheiro do povo) é a moeda legal do país. A unidade do RMB é denominada Yuan ou Kuai. Um Yuan divide-se em dez Jiao e um Jiao em dez Fen. Existem dois tamanhos de papel-moeda: o maior é o Yuan e os valores das notas são 100, 50, 10, 5, 2 e 1 Yuan. As notas menores equivalem ao nosso centavo: 5, 2 e 1 Jiao. Há ainda as moedas de 1 Yuan, 5 Jiao (única dourada), 1 Jiao e as pequenas de 5, 2 e 1 Fen. 2. Main weights and measures.

3. Main national holidays

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The official public holidays in China are as follows: New Year’s Day : January 1 (one day) Spring Festival (Chinese New Year): Varies: late January or February (three days) International Labor Day: May 1 (three days)

Official working hours are 40 hours per week. Government departments now work a five-day week.

National Day: October 1 (three days) 4. Time zones

All of China is on Beijing (the capital) time. China is 8 hours ahead of Greenwich Mean Time and 11 hours ahead of Brasilia standard time. 5. Business hours

The working hours for government departments are usually from 08:00 to 17:00, with an hour of lunch break from 12:00 to 13:00. The working hours for business are usually from 09:00 to 17:00. Horário: Bancos - 09:00 às 12:00h / 13:00 às 16:00h Lojas - 09:00 às 21:00h Hotéis - 07:00 às 23:00h 6. Electric current: voltage and cycling. 220 volts

7. Desirable periods for trips The north is characterized by aridity and dry plains, while the south is characterized by high humidity and lush greenery. The north tends to have extremely cold, dry winters, while winters are wetter south of Shanghai. Summer weather in most of China can be unpleasantly hot and unpredictable. The best times to visit tend to be spring and fall, although fall weather tends to be more pleasant and reliable. Book air travel well in advance, as spring, end of summer, and fall tend to be the busiest travel seasons in China. Try to avoid three week-long national holidays as follows:

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Spring Festival (like Christmas) starts later January or early February. International Labour Day Holiday starts with May 1st. National Day starts with October 1st .

8. Entry visa A foreign business visitor to China must obtain a visa; these are issued by Chinese embassies and consulates in Brazil.

Seção Consular da Embaixada da China SES-Av. das Nações, Lote 51, Qdr. 813 Brasília - DF CEP:70443-900 Horário: 09:00 - 12:00 2a - 6a feira Tel: (061) 3464436 ou 3464426 Web: www.embchina.org.br Seção Consular da Consulado Chinês em São Paulo Consular jurisdiction zone: Sao Paulo and Parana Seção Consular da Consulado Chinês no Rio de Janeiro Consular jurisdiction zone: Rio de Janeiro, Minas Gerais, Bahia and Espirito Santo 9. Vaccines

Valid smallpox and cholera inoculation certificates may sometimes be required. While many business travelers have successfully ventured in and out of China without regard for medical considerations, the following vaccinations: hepatitis A, hepatitis B, Japanese encephalitis B, and typhoid (capsules or injection) are recommended. In addition, make sure you have not tested positive for tuberculosis, and your Tetanus (good for 5 to 10 years), and polio (good for 10 years) vaccinations are current. If you plan to travel in remote areas, a rabies vaccination is recommended and, for travel in subtropical areas during the summer, also bring malaria medication. The availability of quality health care for international travelers has improved remarkably in recent years with the opening of many clinics staffed by foreign doctors catering to foreigners. 10. Hotels HOTÉIS A seguir, alguns dos principais hotéis em Pequim, onde você poderá dispor de serviço ocidentais: 5 Estrelas

Beijing Kempinski Hotel

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http://www.embchina.org.br/







50, Liang Ma Qiao Lu Fone: (8610) 6465-3388 Fax: (8610) 6465-1279 China World Hotel 1, Jian Guo Men Wai Fone: (8610) 6505-2266 Fax: (8610) 6505-3164 Grand Hotel Beijing 35, Dong Chang an Jie Fone: (8610) 6513-7788 Fax: (8610) 6513-0048/49 Great Wall Sheraton Hotel 10, Dong San Huan Bei Lu Fone: (8610) 6500-5566 Fax: (8610) 6500-3398 Hilton Hotel Beijing 1, Dong San Huan Bei Lu Fone: (8610) 6466-2288 Fax: (8610) 6465-3052 Jianguo Hotel 15, Jian Guo Men Wai Da Jie Fone: (8610) 6500-2233 Fax: (8610) 6500-287 Palace Hotel 8, Jin Yu Hu Tong Fone: (8610) 6512-8899 Fax: (8610) 6512-9050 Shangri-La Hotel 29, Zi Zhu Yuan Lu Fone: (8610) 6841-2211 Fax: (8610) 6841-8002 4 Estrelas Gloria Plaza Hotel 2, Jian Guo Men Nan Da Jie Fone: (8610) 6515-8855

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Fax: (8610) 6515-8533 Scitech Hotel 22, Jian Wai Da Jie Fax: (8610) 6512-2288 Fax: (8610) 6512-3543 Holiday Inn Crowne Plaza 48, Wang Fu Jing Fone: (8610) 6513-3388 Fax: (8610) 6513-2513 Jinglun Hotel Beijing-Toronto 3, Jian Guo Men Wai Fone: (8610) 6500-2266 Fax: (8610) 6500-2022 Radisson Beijing Hotel A, East Bei San Huan Lu Fone: (8610) 6466-3388 Fax: (8610) 6465-3181 Swissôtel Dong Si Shi Tiao Fone: (8610) 6553-2288 Fax: (8610) 6553-2501 3 Estrelas Peace Hotel 3, Jin Yu Hu Tong Fone: (8610) 6512-8833 Fax: (8610) 6512-6863 City Hotel 4, Gong Ti Dong Lu Fone: (8610) 6500-7799 Fax: (8610) 6500-7668

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