CSG news update -- 2006-06-13

[China Study Group <chinastudygroup@gmail.com>]

China Study Group news update

China's weapon exports 'legal, unimpeachable'
http://en.ce.cn/National/Politics/200606/13/t20060613_7319563.shtml
Xinhua | 2006-06-13
China has been exporting conventional weapons properly in the light of international rules, which is reasonable, legal and unimpeachable, Chinese expert said on Monday.  Teng Jianqun, a researcher with the China Arms Control and Disarmament Association, told Xinhua that China has always put its li...

'Honeymoon' tax period for foreign companies may soon be over
http://en.ce.cn/Business/Macro-economic/200606/13/t20060613_7319312.shtml
China Daily | 2006-06-13
Preferential taxes may have been a major attraction for foreign companies investing in China but that could all be about to change.  With the draft of the new corporate income tax law to be reviewed by China's top legislature in August, the unification of tax rates for foreign-funded and domes...

China's forex reserves exceed $900 bln
http://en.ce.cn/Markets/Currencies/200606/13/t20060613_7318072.shtml
Reuters | 2006-06-13
China's foreign exchange reserves, the world's largest, have risen above $900 billion as a result of the nation's growing trade surplus, a senior government official said on Monday.  The official said China's foreign exchange reserves had hit a new high following several consecutiv...

China attacked over arms exports
http://news.ft.com/cms/s/452b75b2-f9af-11da-8ced-0000779e2340.html
Financial Times | 2006-06-12
Stephen Fidler
Chinese arms exports are worsening a number of conflicts around the world, belying Beijing's claims that its approach to weapons sales is "cautious and responsible", according to a report published today by Amnesty International.  The human rights group said most discussion of Chinese weapons ...

Distribution system reform and expansion of the middle class
http://english.peopledaily.com.cn/200606/12/eng20060612_273211.html
People's Daily | 2006-06-12
The politburo of the central committee of the Communist Party of China has recently discussed reform on distribution system and regulations on distribution order.  With a population of 1.3 billion and fast development in recent years, the problem of an increasingly large gap between the rich and t...

China racks up record $13bn trade surplus in May
http://news.ft.com/cms/s/0cffe7fc-f9ca-11da-8ced-0000779e2340.html
Financial Times | 2006-06-12
Mure Dickie
China's trade surplus hit a record $13bn in May as exports soared more than 25 per cent year-on-year, a powerful performance that will add weight to calls for new economic tightening and further revaluation of the renminbi.  State media said last week that China's M2 money supply expanded ...