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New EU rules to hit home appliance exports

New EU rules to hit home appliance exports
   
A new EU directive is expected to affect US$56 billion worth of annual exports from more than 5,000 Chinese home Wholesale Appliance companies.
Small and medium-sized companies, which account for 30 per cent of China's electronic product lines and already face pressure from multinational companies and larger domestic enterprises, are expected to feel the directive's effects first, warn experts.
At a forum themed on countermeasures to the EU's Restriction of Hazardous Substances (RoHS) directive held over the weekend in Qingdao in East China's Shangdong Province, Huang Jianzhong, a senior official from the Ministry of Information Industry (MII), said Chinese manufacturers needed to increase production standards to seize a bigger share of the world market.
"Safe, healthy and environmentally-friendly have become key qualities in the Home Appliance market," he said.
"As Chinese brands are gradually recognized on the world market, we ought to further optimize our production to take a bigger stake."
Under the new EU directive, which took effect on July 1, electronic products containing six hazardous substances will not be allowed on the EU market.
The regulation allows a maximum concentration of only 0.1 per cent by weight of environmentally hazardous substances such as lead and mercury, which are necessary in the production of electrical products.
Guangzhou AC Panasonic recently announced that a quarter of its 208 suppliers, which provide a total of 7,268 different assembly parts, would be unable to meet the standards imposed by the EU directives. Unless they can upgrade their technologies in time, these suppliers stand to lose their market share.
"Manufacturers have to both upgrade their own production equipment and ensure the new standards are met by their parts suppliers, which will bring an average rise of 10 per cent in production costs," said Liu Wanshan, an official with the State Administration of Quality Supervision, Inspection and Quarantine.
The increased costs will bring many challenges to Chinese companies, which largely owe their success on the international market to low-price strategies.
"Chinese enterprises must substitute these substances with environmentally friendly materials in their exports to the EU," Liu added.
"The trend towards green products is not a fashion anymore and the pressure to adhere to environmentally friendly standards is rapidly increasing and getting more and more sophisticated and complicated," said Oliver Butler, vice-president of France's Bureau Veritas, a global leader in conformity assessment for quality, health, safety, environment and social responsibility.
"It will become the hot topic for all electrical and electronics manufacturers. We strongly recommend companies establish a profound RoHS management system.
"With improved management and control in the whole production chain, including raw materials, design, production, packaging and even distribution, their products can meet the RoHS directive much easier," Butler added.
Statistics from China's Ministry of Commerce show that joint ventures and large domestic enterprises produce 75 per cent of the country's electronics exports.
Since many of these companies have already begun integrating environmental and health considerations into their operations, they will have an easier time complying.
Many firms, including Sony, Haier, Hisense and TCL, are already making full preparations for the new directives.
On the legislative side, China has begun participating in international standards discussions. To date, it has developed 6,500 national product standards in line with international standards, or 40 per cent of the national total.
"Such regulations will have a growing effect on our export trade, and the participation will have our voices heard globally," said MII official Huang Jianzhong.
Moreover, following the EU's RoHS directive, the Chinese version of RoHS, jointly regulated by seven ministries, is to take effect on March 1 next year.
The regulation is likely to be broader in scope and even more comprehensive than the EU directive.
It will apply to every participant in the electronics supply chain, from manufacturers and distributors to importers and retailers. The new law will require every product to be tested before it is allowed entry into China, according to Huang.
"The Chinese version of RoHS will work as a barrier to foreign products that have been turned down by the EU market but manufacturers hope to dump into our country.
"It will provide protection for mainland consumers' benefits as well, as it will ban companies from selling quality products to the EU, while marketing inferior ones on the domestic market," Huang continued.
"Despite current costs increasing and exports decreasing, in the long-run the new EU electronics standards will play an active role in encouraging Chinese companies to pursue more sustainable product development," said Wang Ning, vice-president of Chinese Electronic Chamber of Commerce.


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UL Warns of Potential Safety Hazards with Counterfeit ul power strip
NORTHBROOK, Ill., Feb. 1, 2005 -- Underwriters Laboratories Inc. (UL) is notifying inspection authorities, retailers, and consumers that three-outlet power strips distributed by Enersonic bear counterfeit UL Listing Marks for the United States and Canada. These products do not meet UL safety requirements and may pose a risk of fire or electric shock. The use of the Listing Mark is not authorized by UL.

Name of Product: Enersonic, YLPT-1

Units: Unknown quantity.

Manufacturer: The manufacturer of these products has not been identified.

Hazard: These products may pose a risk of fire and electric shock. They have features that do not comply with UL safety standards, including incorrect wiring of the receptacles and an undersized power supply cord.

Identification:

On the enclosure: The ul power strips have a plastic enclosure with "Enersonic" molded on the enclosure's front side and "YLPT-1, 125Vac, 15A, 60 Hz, 1875W" molded on the enclosure back. A counterfeit UL holographic label is attached to the back of the enclosure which identifies the products as a "relocatable power tap."

On the power cord: The power supply cord is marked "16AWGX3C".

On the packaging: The top of the packaging is marked "Enersonic 3 Outlet Power Strip W/3' Cord." Near the center of the packaging is marked "ITEM# 10015 3 Outlet Power Strip W/3' cord." A counterfeit cULus Listing Mark is located on the bottom front corner.

The counterfeit power strips look similar to a power strip that is authorized to bear the UL Listing Mark manufactured by Ningbo Yaling Electrical Appliance Co, Ltd. The authorized power strip is marked with a date code on the back of the product. The date code consists of two circles with arrows in the middle molded into the bottom of the enclosure, one circle has two numbers representing the year and the second circle has one or two digits representing the month, the arrows point to the year and month of manufacture. The counterfeit products have no date code. The photographs below show the difference between the counterfeit power strip and the UL authorized power strip.

Manufacturing Technology Cebu 2006 set on July 7-9

Manufacturing Technology Cebu 2006 set on July 7-9

MANUFACTURING Technology (Manutech) Cebu 2006, the premier machinery and technology exhibition in southern Philippines, is set from July 7 to 9 at the Waterfront Cebu City Hotel and Casino.

The three-day trade event is expected to gather industry professionals and buyers from all over the Visayas and Mindanao region with its showcase of over 400 exhibitors representing products and services from different countries namely Australia, China, Denmark, France, Germany, Hong Kong, Italy, Japan, Korea, Malaysia, Singapore, Taiwan, the United States and the Philippines.

Manutech Cebu is a synergy of three trade shows: Industrial Machinery, The T.O.P.S. Show and Woodmach Cebu.

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The T.O.P.S. Show will highlight business solutions, audio and visual communications, digital large format printing, office machines, corporate gifts, products and accessories; while Woodmach Cebu will showcase wood, woodworking, furniture-making machinery, furnishings and accessories.

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The three-in-one event is being organized by Global-Link Marketing and Management Services, Inc., one of the country’s largest trade show organizers, and is supported by the Wood Producers Association of Cebu.



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Shadow of corruption lurks behind investors as they queue for $10bn Chinese floa

Shadow of corruption lurks behind investors as they queue for $10bn Chinese float

It has been billed as the world's biggest share offering in six years, a doorway into the fastest growing asset market on the planet and an opportunity to grab a piece of China's economic miracle.
But when the Bank of China makes its $9.9bn (£5.3bn) debut on the Hong Kong stock exchange next Thursday, investors will have to ask whether the new bullishness about China's financial system can erase old doubts about corruption, nonperforming loans and economic nationalism.


After a surge in mainland stock prices since the start of the year, tens of thousands of speculators appear already to have made up their minds that any chunk of China, no matter how imperfect, will bring a good return. In the past week huge queues of prospective investors have lined up outside Bank of China branches in Hong Kong for a chance to buy some of the 1.28bn shares.
According to local media, there has been so much interest that the bank has had to print an extra 1m subscription forms and another 100,000 copies of its prospectus. Ahead of the IPO on June 1, the tranche of shares offered to institutional investors, mostly foreign, has been five or six times oversubscribed.

Royal Bank of Scotland headed a consortium that bought a 10% stake in Bank of China last year for $3.1bn. Criticised as risky at the time, that investment is now expected to show a substantial paper profit. But domestic critics have accused the government of selling off the country's second-biggest bank too cheaply, even though only 10% will be floated.

Founded by Sun Yat-Sen in 1912, soon after the fall of the Qing dynasty, the Bank of China is the nation's oldest financial institution. It has more than 11,000 branches, holds a 12% share of domestic lending and leads the market for foreign exchange transactions.

But it is also plagued by the problems that have bedevilled its rivals. China's financial system remains burdened by excessive lending to state-owned enterprises and weak internal controls. According to the International Monetary Fund, the Bank of China and its three biggest rivals pay no attention to credit risk when setting loan rates. Government figures suggest they are weighed down by a combined $137bn of bad loans, even after a huge injection of public funds when the Bank of China received $22.5bn to cover delinquent lending.

The Bank of China has been among the worst affected by corruption. This March, five executives were arrested on suspicion of defrauding the institution of $20m. Last year, a former vice president, Liu Jinbao, was given a suspended death sentence for embezzling 14m yuan (£927,000). Wang Xuebing, the bank's president from 1994 to 2000, was sentenced to 12 years in prison for taking millions of yuan in bribes and China Gifts.

But it is lax credit control that is thought to pose the biggest danger. Bank lending is growing sharply, fuelling excess investment in luxury apartments, automobile firms and cement companies. If the economy slows, non-performing loans could rise again.

It is a risk investors seem more than willing to take. Even though the Bank of China's flotation will be the biggest since the $10.6bn share sale by the American telecoms group AT&T in 2000, its record will not stand for long. Later this year, the Industrial and Commercial Bank of China expects to raise more than $12bn in its IPO. The world's willingness to bet on China has never been greater.





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Asian Stocks Climb to Record on U.S. Rates Optimism; Sony Gains

Asian Stocks Climb to Record on U.S. Rates Optimism; Sony Gains

May 8 (Bloomberg) -- Asian stocks climbed to a record after a U.S. jobs report eased concern that the Federal Reserve will keep raising borrowing costs in the region's biggest export market. Sony Corp. and Samsung Electronics Co. paced the gain.

``The U.S. economy looks more stable and I wouldn't be surprised if the Fed takes a pause from increasing rates,'' said Atsushi Osa, who helps oversee $4.1 billion at Sumitomo Mitsui Asset Management Co. in Tokyo. ``That prospect boosted speculation overseas sales at exporters will keep increasing.''

Commodity suppliers including BHP Billiton and Rio Tinto Group gained after the price of copper climbed to an all-time high.

The Morgan Stanley Capital International Asia-Pacific Index jumped 1.6 percent to 143.05 at 2:07 p.m. in Tokyo, set for the highest close in the benchmark's 19-year history. All 10 industry groups rose.

Japan's Nikkei 225 Stock Average gained 0.7 percent to 17,279.84 as trading resumed after a three-day holiday. Property developers jumped after a Bank of Japan report showed land prices rose for the first time in 15 years.

Share indexes across the region rose, with the Philippine Stock Exchange Index having the biggest gain, up 4.8 percent.

The U.S. Dow Jones Industrial Average rose 1.2 percent on May 5 after a government report showed employers added fewer jobs in April than economists expected, prompting speculation the Fed will pause in raising its target rate after an increase on May 10. Futures contracts suggest traders see a 36 percent chance of a rate rise to 5.25 percent in June, down from 48 percent. The rate now stands at 4.75 percent.

Rates Optimism

Sony, maker of the PSP portable game console and Vaio computers, added 2.5 percent to 5,690 yen. Samsung Electronics, South Korea's largest exporter, gained 1.6 percent to 655,000 won. The company accounts for about 10 percent of the nation's exports.

Gains among some exporters were limited after Asian currencies rose against the dollar, raising concern the value of companies' dollar-denominated sales will decline. The yen rose to a seven-month high.

Nissan Motor Co., Japan's second-largest automaker, climbed 2.1 percent to 1,538 yen. The company gets more than half of its sales from overseas. Hyundai Motor Co., South Korea's largest automaker, rose 3.4 percent to 84,700 won. Three out of every four cars Hyundai made last year were sold abroad.

AU Optronics Corp., Taiwan's largest maker of flat-panel displays used in computers, gained 1.1 percent to NT$55. Hong Kong's Li & Fung Ltd., a supplier to U.S. retailers such as Wal- Mart Stores Inc., added 1.3 percent to HK$19.70.

`Real Value'

Among commodity producers, BHP, the world's biggest mining company, advanced 3.3 percent to A$31.31. Rio Tinto, the third biggest, gained 3.2 percent to A$85.43. Dowa Mining Co., which produces copper, zinc and gold, rose 4.6 percent to 1,377 yen.

Korea Zinc Co., the world's biggest zinc smelter by production, rose 2.9 percent to 93,600 won. Jiangxi Copper Co., China's largest listed copper producer, jumped 7.4 percent to HK$9.45 in Hong Kong.

Copper prices advanced to a record in Shanghai today, while gold ended last week in New York at a more than 25-year high.

Mining shares' ``real value is anybody's guess given the vast potential of Chinese demand, so they're moving in line with commodities prices for the time being,'' said Lucinda Chan, head of Asian business at Macquarie Equities Ltd. in Sydney.

Land-Price Rebound

Real-estate developers and banks in Japan led gains in the MSCI's measure of financial shares after a central bank report showed average land prices in 2005 climbed 1.4 percent from a year earlier. The calculations were based on an earlier land ministry report. The last time land prices rose was in 1990, when they jumped 6.8 percent.

Mitsui Fudosan Co., Japan's biggest property developer by sales, advanced 6.9 percent to 2,695 yen. Mitsubishi Estate Co., the biggest by market value, gained 3.6 percent to 2,575 yen.

Mitsubishi UFJ Financial Group Inc., the world's largest bank by assets, rose 2.2 percent to 1.84 million yen.

Nippon Telegraph & Telephone Corp., the world's largest telephone company, jumped 4.5 percent to 533,000 yen. The company will boost its dividend for the year started April 1, the Nihon Keizai newspaper reported.

Philippine Economy

The Philippine Stock Exchange Index climbed 4.8 percent, its largest gain since June 17, 2003, amid optimism about the outlook for earnings and the economy.

Bank of America revised its full-year growth forecast for the Philippines to 5.3 percent from 4.7 percent after Economic Planning Secretary Romulo Neri last week said first-quarter growth topped 5.5 percent on faster-than-expected agricultural expansion.

Ayala Corp., owner of the nation's biggest developer and No. 2 banking and phone companies, surged 9.9 percent to 472.50 pesos. Philippine Long Distance Telephone Co., the nation's biggest company by market value, rose 6.1 percent to 2,255 pesos.



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Proposal to strip Lehi mayor of some of his powers is tabled

Proposal to strip Lehi mayor of some of his powers is tabled
By Mark Eddington
The Salt Lake Tribune

LEHI - Mayor Howard Johnson still has the power.
After a marathon four-hour public hearing Tuesday night, the City Council tabled a proposed ordinance that would have stripped Lehi's mayor of some of his powers and given them to a strong city manager.
Instead, council members agreed to work with Johnson in upcoming work sessions to tweak the ordinance and decide whether they should vote on it or let the public decide the issue at the ballot box.
"If we, as a council and a mayor, can't sit down and hammer out some kind of agreement, I think it's a disservice to the community," Councilman Mark Johnson said before the vote.
Many at the meeting found the council's first crack at changing Lehi's government to be unacceptable. As outlined, the ordinance would have divested Johnson of his power to hire and fire workers and invested that power in a strong city manager, who would be overseen by the City Council.
Councilman Johnny Barnes said the ordinance's intent is to have five council members making decisions instead of only one person - the mayor.
Backers of the council at Tuesday's meeting also argued a full-time city manager would be better informed and equipped to make decisions than an uninformed, part-time mayor.
Critics, though, countered the change would vest more power with an unelected bureaucrat, who would not be answerable to the public.
"It's inappropriate for the City Council to try and . . . take away power from the mayor [who] citizens elected," said resident David Manning, one of about 200 residents packing Lehi's Legacy Center for the meeting.
Added resident Bonnie Clark: "If change is needed, let's put this on the ballot and let the [voters] decide."
The dispute over who should call the shots in Lehi is part of an ongoing spat between the mayor and council. It started with Mayor Johnson's campaign promise to shake up City Hall, a pledge that stirred up some council members and staff and ensured Johnson's first few months in office would be no honeymoon.
Already-frigid relations with the council waxed colder recently when


Councilman Johnson used the city newsletter to rebuff allegations about taxes the mayor made during his campaign. Then the council refused to allow the mayor to respond in the newsletter.
Matters worsened when Mayor Johnson told the council in March he would not reappoint Ed Collins, which prompted the popular city administrator to resign, effective at the end of June.
Councilman Johnson credited Collins' fiscal prowess for the city's top bond rating and said the council crafted the government-change proposal to protect the city's financial interest and curb the abuse of power. Council members said the mayor got rid of Collins without cause.
But Manning and other critics noted the proposed ordinance empowered the council to also fire a city manager without cause.
So there's no difference, Manning said. "You just want to take away his authority and put it into your own hands."
For his part, Mayor Johnson acknowledged he and council members have had their differences since he took office in January, but he added, that is how government works.
"You did not hire us to get in the harness to pull the plow together," he said. "You hired us to give some thought to it and decide what direction that plow was to be pulled. . . . That doesn't mean we're going to agree all the time."
After the council's vote, resident Jim Davis found himself unable to root for either side.
"I don't think we need to replace Lehi's form of government," he said, "only the sorry elected officials who are running it."



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Grass needs to be cut? It's easy to go green

Grass needs to be cut? It's easy to go green
Electric mowers a clean alternative to old gas guzzlers


Every summer, lawn mowers consume about 151 million litres of gas — one mower alone produces 48 kilograms of greenhouse gases in one season and as much air pollution as a car driven 550 kilometres.

Add to that the weed whackers and leaf blowers and you have enough emissions to choke a donkey. All told, lawn equipment accounts for 3 to 5 per cent of Canada's air pollution.

However, a remedy may be no farther than our own backyards.

Since 2001 when the Clean Air Foundation and The Home Depot started the Mow Down Pollution program, homeowners have retired more than 10,000 old gas-guzzling lawn mowers, with 90 per cent of them immediately purchasing cleaner alternatives with their $100 instant rebate.

"Based on what we know about old lawn mowers and polluting, Mow Down has been responsible for reducing smog-forming and greenhouse gas emissions by over 200 tonnes," says Tracey Davies of the Clean Air Foundation (CAF), the program's manager.

Mow Down's lawn and garden expert for the program is Dr. Mow — also known as Dan Blair, manager of the seasonal department at the Gerrard St. Home Depot. A knowledgeable and vocal advocate for energy reduction, water conservation and clean alternatives, He's quick to commend the City of Toronto for a "great job in promoting a change of habits, with Energuide appliances, encouraging water conservation and banning certain chemicals."

But he says there's also been a "major contribution to clean air on an individual level."

If all things are equal — cost-effectiveness and ease of maintenance — people will make a choice for the environment, he says. The newer machines are not only ecologically friendly, they're a lot less aggravating to operate and often less expensive. "Operating a gas mower," says Blair, "can be a pain —purchasing gas, storing it, adding gel over the winter, tinkering with the mechanics. And coughing or sputtering is a sure sign the lawn mower is about to give up the ghost."

The simplest alternative is the manual push mower. With no power source, it's environmentally friendly — and great exercise. And with garden design incorporating perennials, shrub borders, ponds and statuaries, and cutting back lawn size, big mowers are unnecessary.

A manual mower is also quiet. Blair says the noise pollution factor is a big one — he won't even stock gas-powered weed whackers or leaf blowers at his store. Switching to battery-powered, cordless electric, rechargeable or standard reel "gives a great cut, zero noise and zero emissions," he says.

One alternative is to get rid of the grass altogether and replace with mulch. Under the swing set or the backyard dining table, a variety of environmentally sensitive mulches, including pea gravel and shredded recycled tires, look good, are smooth under little feet and allow air and water access for plant growth. But Blair says too many people have memories of the spongy lawns of their youth to let them go entirely. "It's a strong pull but it doesn't mean you have to pollute."

One choice is an electric mower, which is not only easier on air quality but also safer than it used to be, coming either cordless with rechargeable batteries or with safety mechanisms to eliminate the chance of severing the cord. These mowers are also cheaper, costing less to purchase and to use.

For those who have large lawns to cut, however, a gas mower may have the power you need. The newer models have better emissions track records.

Cleaning up the air quality is only one part of the equation, though. What goes into the soil — and into the groundwater — is equally important. A proliferation of eco-friendly products, like diatomaceous earth and natural fertilizers like soil sponge, are very effective.

Lawns are notoriously thirsty, which is especially challenging during no-water advisory drought periods. Rain barrels are an easy solution, says Blair. At about $70 each, they're easy to install, can be stacked up, and come in half sizes for a closer fit to the side of the house.




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A funnel full of factors

A funnel full of factors
Greater global demand, production constraints and political tensions in key supplier nations such as Iran and Nigeria combine to force the price of oil to a record high

The dynamics of the world oil market are extremely complicated, but the laws of supply and demand still apply. And that's why we're seeing record prices for a barrel of crude.

Crude oil futures closed Tuesday at a record high of $71.35, after briefly touching $71.60 in electronic trading on the New York Mercantile Exchange. The latter figure was 75 cents above the intraday record on Aug. 30 in the wake of Hurricane Katrina.

The high cost of oil is cause for concern among businesses and consumers and, therefore, has potential political ramifications too.

Rising energy can cascade through the economy, forcing prices higher for everything from bread and butter to surfboards and polyester pants—anything that requires petroleum.

For decades, demand for oil was determined largely by the health of the economies of North America, Europe and Japan. Recently, the stunning run-up in the size and energy appetite of the economies of China and India has added to the cumulative global demand for energy, and in effect served to help support oil prices.

Even so, oil prices weakened in response to the U.S. economic recession of 2001, and excess supply drove oil prices well below $20 a barrel. Prices later firmed as the economy began to regain its footing, and spiked in early 2003 when the U.S. launched its military invasion of Iraq.

Since then, the trend in energy prices has been up.

"The world oil price has risen rapidly and is very high today compared to the recent past, primarily because demand growth has been very rapid, and crude oil production capacity is constrained in the short run," professor Severin Borenstein of the University of California, Berkeley, Energy Institute told a Senate committee last month.

Production constraints remain among the key issues.

Unrest has crimped oil production in Nigeria for several months, while Hurricane Katrina knocked oil-producing platforms out of action along the Gulf Coast of the U.S. in late August. Iraq has been unable to restore production to preinvasion levels.

The latest price increases reflect concerns that Iran's efforts to develop nuclear capabilities may cause an international response that will reduce Iran's significant oil exports.

With oil supplies so short, "If we were to lose Iran's exports of around 2 million barrels a day, there's no way we can make up the loss," Frank Verrastro, director of the Center for Strategic and International Studies energy program in Washington, told Reuters.

Ironically, crude oil prices are rising even though inventories are growing. That's likely to continue for a few more weeks, experts say, because in an unusual but generally short-lived marketplace development known as "contango," current oil prices are lower than futures for oil to be delivered later in the year. That situation provides an incentive for refiners and other buyers to build up stores of crude.

Crude futures "move in fits and starts, and this [run-up] can end," said Tom Kloza, chief oil analyst at Oil Price Information Service. The remainder of April and the first five days of May "will be the most hectic" period for oil prices, he said, noting that this is the period when refiners are switching from winter to summer blend.

Gasoline retail prices are 10 to 30 cents a gallon short of catching up to wholesale price increases, he said.

The market "is always bipolar," Kloza said. "We're in the later stages of the manic phase here." He added that "this will be a year of extremes," and he expects sharply lower fuel prices in the year's final quarter.

The run-up raises the question of, what, exactly, is the price of oil?

The usual stand-in is the price established by a Nymex derivative security that promises future delivery of a barrel of light, sweet grade crude oil. While that contract is a reasonable indicator of oil price trends, it's pretty far from being a real-time number.

At Nymex, commodities traders make bets, in the form of futures contracts, on where they think oil prices are going to go. When news reports speak of "the price of oil," they are referring to the settlement price of such contracts.

But the contracts rise and fall all day, however, blown this way and that by swirling rumors of unrest in Nigeria, a slowing economy in China and a thousand other factors that might affect supply or demand.

Of course, high-volume petroleum-product buyers such as petrochemical-makers and airlines don't buy their petroleum every day. Nor do they pay the Nymex price for a barrel. Such users buy under contracts that make their day-to-day energy costs much more stable.

But the disconnect between the futures price and the real market price lasts only for a while.

There's just a brief lag between a rise in futures prices and a subsequent rise in energy costs, said Larry Young, senior trader at Infinity Brokerage Services in Chicago.

"If I'm paying a dollar more a barrel for crude, that price is going to be passed along when I refine the crude to turn it into gasoline," he said.

Indeed, Young said Tuesday, the futures market "is saying the price of gas in May will be $2.21 a gallon wholesale. You can add anywhere from 30 cents to 50 cents retail."

But, Young added, "the retail gas station owner doesn't wait until May. He reacts now. Before you go home you can see gas go up. That isn't justified since the gas in the [station's underground tank] is already paid for..

"But you definitely see a knee-jerk reaction to raise prices and less of a knee-jerk reaction to lower them."



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China's surplus soars, clouding Hu's U.S. visit

China's surplus soars, clouding Hu's U.S. visit

HONG KONG China disclosed on Tuesday that its trade surplus surged to $11.19 billion in March, its second- highest monthly surplus ever and a level that could increase trade friction before President Hu Jintao's visit to the United States next week.

Soaring exports and slowing growth in imports caused the Chinese surplus to more than double compared with March 2005 and nearly eclipsed China's record monthly trade surplus of $12.02 billion, set in October.

The large surplus in March was especially significant because China usually has modest surpluses in the first quarter. During the second quarter, factories increase their shipments to the United States and Europe of everything from toys to DVD players, in preparation for the December retailing season.

Hu is scheduled to visit Seattle and then Washington during a four-day visit starting Tuesday, and China's trade and currency are likely to be important issues in the discussions. In Washington, the Treasury is in the final stages of deciding whether to accuse China of manipulating the value of its currency - keeping the yuan artificially cheap to maintain the competitiveness of Chinese exports, despite rising wages and raw material costs in China.

The yuan was at 8.0087 to the dollar in late afternoon trading in Shanghai on Tuesday, and it is widely expected by traders to push through the psychologically important level of 8 to the dollar in the next few days. China revalued the yuan by 2.1 percent against the dollar on July 21, and it has appreciated another 1.27 percent since then.

Larry Wortzel, chairman of the U.S.- China Economic and Security Review Commission, which was created by Congress to monitor and report on the bilateral relationship, said that the political impact of the latest trade figures might be limited. "It's a good time for them to release those numbers because Congress just went out on a two- week break, and domestically the nation is transfixed with immigration reform," he said.

Jing Ulrich, chairman of China equities at J.P. Morgan Securities (Asia Pacific), said the profitability of Chinese exporters had slumped in the past year because of higher costs for wages and materials together with the refusal of American retailers to pay higher prices. "There is a lot of pressure on Chinese manufacturers," she said.

China on Tuesday released only its totals for exports and imports and the trade balance during March, but it did not provide details of trade by country or by product. Exports rose 28.2 percent from a year earlier to $78.05 billion, while imports climbed 21.3 percent to $66.86 billion.

State-owned media in China have been strongly critical as the European Union and the United States have begun challenging Chinese trade policies, most recently by making preparations to file a challenge with the World Trade Organization to Chinese tariffs on imported auto parts. "It is not an overstatement to claim that the country has become the world's largest victim of protectionism," the official newspaper China Daily said Monday.

With the approach of Hu's visit, Chinese officials and state-owned media have been citing American restrictions on the export of technology with potential military applications as the reason for their bilateral deficits with the United States.

Karan Bhatia, a deputy U.S. trade representative who used to be the deputy under secretary of commerce responsible for administering the export control rules, denied in a telephone interview on Friday that the rules had a discernible effect on American exports to China.

The value of contracts blocked by the rules is "in the millions of dollars, not even the tens of millions," Bhatia said, adding, "This is as red a herring as they come."

Chinese textile and apparel exports have captured the greatest attention over the past year, mainly because China agreed to special rules when it joined the World Trade Organization in 2001 that have allowed the United States and the European Union to restrict Chinese exports of these goods, even after lifting their quotas on other countries' shipments at the start of last year.

But detailed Chinese trade data for the first two months of this year showed that Chinese exports were climbing briskly for a wide range of goods, with products like cellphones and televisions showing especially large percentage increases.

Because of differences in record keeping, China calculates that its exports to the United States exceed imports by three to one, while the United States puts the ratio at six to one.

HONG KONG China disclosed on Tuesday that its trade surplus surged to $11.19 billion in March, its second- highest monthly surplus ever and a level that could increase trade friction before President Hu Jintao's visit to the United States next week.

Soaring exports and slowing growth in imports caused the Chinese surplus to more than double compared with March 2005 and nearly eclipsed China's record monthly trade surplus of $12.02 billion, set in October.

The large surplus in March was especially significant because China usually has modest surpluses in the first quarter. During the second quarter, factories increase their shipments to the United States and Europe of everything from toys to DVD players, in preparation for the December retailing season.

Hu is scheduled to visit Seattle and then Washington during a four-day visit starting Tuesday, and China's trade and currency are likely to be important issues in the discussions. In Washington, the Treasury is in the final stages of deciding whether to accuse China of manipulating the value of its currency - keeping the yuan artificially cheap to maintain the competitiveness of Chinese exports, despite rising wages and raw material costs in China.

The yuan was at 8.0087 to the dollar in late afternoon trading in Shanghai on Tuesday, and it is widely expected by traders to push through the psychologically important level of 8 to the dollar in the next few days. China revalued the yuan by 2.1 percent against the dollar on July 21, and it has appreciated another 1.27 percent since then.

Larry Wortzel, chairman of the U.S.- China Economic and Security Review Commission, which was created by Congress to monitor and report on the bilateral relationship, said that the political impact of the latest trade figures might be limited. "It's a good time for them to release those numbers because Congress just went out on a two- week break, and domestically the nation is transfixed with immigration reform," he said.

Jing Ulrich, chairman of China equities at J.P. Morgan Securities (Asia Pacific), said the profitability of Chinese exporters had slumped in the past year because of higher costs for wages and materials together with the refusal of American retailers to pay higher prices. "There is a lot of pressure on Chinese manufacturers," she said.

China on Tuesday released only its totals for exports and imports and the trade balance during March, but it did not provide details of trade by country or by product. Exports rose 28.2 percent from a year earlier to $78.05 billion, while imports climbed 21.3 percent to $66.86 billion.

State-owned media in China have been strongly critical as the European Union and the United States have begun challenging Chinese trade policies, most recently by making preparations to file a challenge with the World Trade Organization to Chinese tariffs on imported auto parts. "It is not an overstatement to claim that the country has become the world's largest victim of protectionism," the official newspaper China Daily said Monday.

With the approach of Hu's visit, Chinese officials and state-owned media have been citing American restrictions on the export of technology with potential military applications as the reason for their bilateral deficits with the United States.

Karan Bhatia, a deputy U.S. trade representative who used to be the deputy under secretary of commerce responsible for administering the export control rules, denied in a telephone interview on Friday that the rules had a discernible effect on American exports to China.

The value of contracts blocked by the rules is "in the millions of dollars, not even the tens of millions," Bhatia said, adding, "This is as red a herring as they come."

Chinese textile and apparel exports have captured the greatest attention over the past year, mainly because China agreed to special rules when it joined the World Trade Organization in 2001 that have allowed the United States and the European Union to restrict Chinese exports of these goods, even after lifting their quotas on other countries' shipments at the start of last year.

But detailed Chinese trade data for the first two months of this year showed that Chinese exports were climbing briskly for a wide range of goods, with products like cellphones and televisions showing especially large percentage increases.

Because of differences in record keeping, China calculates that its exports to the United States exceed imports by three to one, while the United States puts the ratio at six to one.


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Hamas announces formation of govt

Hamas announces formation of govt

　　 GAZA, March 18 (Xinhua by Saud Abu Ramadan) -- The Islamic Resistance Movement (Hamas) announced on Saturday the formation of a new Palestinian government, which it would present to President Mahmoud Abbas on Sunday for approval.

　　 Hamas Prime Minister-designate Ismail Haneya declared at a press conference in Gaza City that the new cabinet was ready and that he would present it to President Abbas on Sunday evening.

　　 "I will present the cabinet to President Abbas in Gaza on Sunday night and hold talks with him over the new government,"Haneya said.

　　 "Our cabinet is ready and includes Hamas members, independents and technocrats," said Haneya, refusing to reveal the choices for specific portfolios before talks with Abbas.

　　 But Hamas sources revealed earlier that the group would hold key posts in the new government, including the foreign, interior and financial portfolios.

　　 Noting that Abbas‘ Fatah movement and two other Palestinian parties had decided not to join the Hamas-led government, Haneya said that Hamas was still waiting for a final official response from the leftist Popular Front for the Liberation of Palestine (PFLP) on whether to join the cabinet.

　　 "We leave the door open for all the Palestinian factions which have not decided on whether to join the government," he said.In addition, Haneya voiced confidence for Hamas‘ leading rolein the next government.

　　 "There is no doubt that we will succeed in shouldering our duties and running the Palestinian daily affairs," he said. "The Palestinian people, who trust Hamas, will not starve."

　　 Meanwhile, the Hamas premier-designate also called upon the international community not to cut off aid to the Palestinian people.

　　 "Cutting aid will be a punishment to the Palestinian people who practiced democracy in a fair election," he stressed.

　　 Haneya‘s announcement came almost four weeks after Abbas formally tasked the group with the establishment of the next government.

　　 Hamas has held rounds of talks with Palestinian factions,including Abbas‘ Fatah movement, over the formation of a coalition government, but seems to make little progress.

　　 Local analysts said that it is unlikely that Hamas will be able to bring partners into its cabinet.

　　 "I don‘t think that the PFLP will join the Hamas-led cabinet and it is quite likely that Hamas will have to form the government alone," said Talal Oukal, a Gaza-based Palestinian political analyst.

　　 Winning the Jan. 25 legislative elections by a landslide, Hamas,which calls for Israel‘s destruction, has become the dominant faction in the parliament.

　　 The new Hamas-led cabinet will have to be approved by Abbas before taking office.

　　 Sources close to Abbas said that the president had no objection to the new cabinet but would urge Hamas to adopt changes to its government platforms.

　　 Following Hamas‘ election victory, the Quartet of international mediators-- the United States, the European Union, the United Nations and Russia-- urged Hamas to renounce violence, recognize Israel and accept interim peace deals with Israel.


　　 Abbas also called upon Hamas to open talks with Israel and abide by previous Palestinian-Israeli agreements.

　　 But Hamas has so far rejected the demands. Enditem
　　

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