Summit Notebook

Exclusive outtakes from industry leaders

from Changing China:

Look in the mirror

The U.S. rejection of the $18.5 billion bid by China's top offshore oil company, CNOOC Ltd, for  Unocal in 2005 was not a move worthy of a world power such as the United States, asserts a Chinese academic with the government's top economic planning agency.

"If you are weak, then I can understand," said Chen Dongqi, deputy director of the Academy of
Macro-Economic Research under the National Development and Reform Commission (NDRC).

"The United States is a strong country. What is it afraid of?" he said at the Reuters China Investment Summit.

"There is a problem there."

Chen was responding to a question about rising protectionism in China, and criticism that Beijing had blocked Coca-Cola Co from buying China's Huiyuan Juice.

from Changing China:

Interest rate barometer

Chinese banking regulators should monitor more closely the lending activities of underground banks, where interest rates react more quickly to changing economic conditions than do rigid state-set interest rates.

"Historically, these interest rates change more rapidly to changes in market liquidity," Gao Shanwen, Essence Securities' chief economist, said at the Reuters China Investment Summit.

from Changing China:

Don’t bank on mortgage spike

By Michael Wei

Don't count on a recent spike in home loans to greatly improve earnings at Chinese banks. That's because they are still a relatively small part of overall lending.

"It is not expected to have a huge impact on banks' overall earnings," Gao Shanwen, Essence Securities' chief economist said at the Reuters China Investment Summit, speaking about the rise in mortgage lending. Mortages make up only about 10 percent of total lending at present.

from Changing China:

Where others won’t go

Chinese mining companies are expanding overseas because they are cost-effective and willing to work in dangerous and risky areas where others are unwilling to go, Yang Junmin, vice general
manager of Beijing Sinodrill, asserted at the Reuters China Investment Summit.

Some critics accuse Beijing of supporting corrupt regimes in Africa, the Middle East and Latin American, where Chinese companies are investing aggressively to secure access to raw materials to fuel the country's rapid economic growth.

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