China and the E.U. reach a deal involving solar panels.

 China Chamber of Commerce for Import and Export of Machinery and Electronic Products and the European Commission have reached a deal to resolve a dispute involving solar panels.

"After weeks of intensive talks, I can announce today that I am satisfied with the offer of a price undertaking submitted by China's solar panel exporters," EU Trade Commissioner Karel De Gucht said in a statement, referring to an agreement for a minimum price for China's imports.

"We found an amicable solution ... that will lead to a new market equilibrium at sustainable prices," De Gucht said.

The Commissioner said the next step for him is to table this offer for approval by the European Commission.

Further details of the legal acts concerning the undertaking arrangement can only be released following their adoption by the Commission.

The Chinese Ministry of Commerce, meanwhile, said China welcomes the deal which "showcased pragmatic and flexible attitudes from both sides and the wisdom to resolve the issue."

According to the Ministry of Commerce spokesman Shen Danyang, resolving the trade dispute is conducive to an open, cooperative, stable and sustainable economic and trade relationship between China and the EU.

Source: Xinhua

Myanmar-China natural gas pipeline starts to deliver gas to China

A Myanmar-China natural gas pipeline (Myanmar section), co-invested by six parties from four countries including China, Myanmar, South Korea and India, was inaugurated in northern Myanmar's Mandalay on Sunday and started to deliver gas to China.
The pipeline is part of a so-called Myanmar-China Oil and Gas Pipeline project, which also includes building a crude oil pipeline. Starting from Kuaykphyu, it passes through Rakhine state, Magway and Mandalay regions and Shan state and enters Chinese territory at Ruili, Yunnan province through Namhkan.

The gas pipeline stretches for 793 km onshore within Myanmar's territory with six processing stations, while the crude oil pipeline, which is nearing completion, starts from Made Island and extends onshore for 771 km.

The gas pipeline has a designed annual throughput of 12 billion cubic meters before off-loading in Myanmar. The transmission capacity of the crude oil pipeline on the Myanmar side is designed at 22 million tons per year with a 300,000-ton crude oil wharf being added.

After the completion and commissioning of the whole project, 2 million tons of crude oil and 20 percent of the designed throughput of gas will be off-loaded in Myanmar, which will be helpful to promote Myanmar's economic development and people's living standards.

Two joint ventures -- South-East Asia Crude Oil Pipeline Co., Ltd. (SEAOP) and South-East Asia Gas Pipeline Co., Ltd. (SEAGP) -- were registered and established with investment from all parties to respectively take charge of operation of the two pipelines.

The SEAOP involves China National Petroleum Corporation (CNPC), Myanmar Oil and Gas Enterprise (MOGE), while the SEAOP involves CNPC of China, DAEWOO of South Korea, OCEBV of India, MOGE of Myanmar, KOGAS of S. Korea and GAIL of India.

Source: Xinhua

IMF Outlook for Chinese Economy Part II

In its consultation discussions with the People’s Republic of China authorities. the IMF executive board have found that although progress in external rebalancing has been substantial, domestic imbalances remain large.
In year 2012 fixed capital formation grew further as a percentage of GDP while domestic consumption was mainly unchanged.
 IMF executive board noted that China's economy has challenges domestically in the 
financial,fiscal and real state sectors. And potential external risks coming from the economic developments
in the Euro area,the U.S. and the economy of more advanced economies.
The IMF underscored and agreed to the transition shift to a more consumption-led for China's economic growth.
  At the same time they agreed to the reform of the financial system, more market-based, which would help improve the allocation of capital, boost household income, and prevent a further increase of risks. "Emphasizing that financial sector liberalization should progress at the appropriate pace and sequencing, they considered as pressing priorities further deregulation of interest rates, greater use of market-based instruments in monetary management, and enhanced prudential oversight, including over the activities of non-banks".
 The executive commitee recommends to use a fiscal stimulus,focused on consumption, if economic 
growth slows down too sharply.
 They also encourage the efforts to strengthen the governance and transparency of local government
finances.
 In addition they welcome reforms in taxation,to make it more progressive and efficient, including a 
value added tax.
 Following the staff assessment that the renminbi remains moderately undervalued, the IMF board
reccomends a more market-based exchange system and restraint on foreign exchange intervention.
At the same time they encourage continued liberalization of the capital account.Opening markets further in the services and upstream industries.
And finally it supports plans to continue the upgrade of the statistical data.And hoped China will
eventually subscribe the Fund's Special Dissemination Standard.