10.4 SAMPLEARTICLES
Sample 10（1）
mill China Face an OversupplYoFPetrochemicals in the Comin9 Years?
Shanghai.May 30.INTERFAX-CHINA—Petrochemical production capacity in Asia，and the Middle East in particular，is currently expanding at a rapid rate in order to meet soaring demand from China，leading to speculation that the country could face a flood of cheap petrochemical imports in coming years.
At an energy forum held in Shanghai recently，industry insiders were unable to agree on whether or not China will face such a situation.Some argued that if Middle Eastern countries continue to expand their production capacity，or if the Chinese economy fails to sustain its present runaway growth，China will face oversupply in the market as early as 2010.
On the other hand，others maintained that demand for basic petrochemical products such as ethylene will continue to outpace any increase in supply，but that the region's traditional petrochemical exporters，such as Japan and Korea，will face increasingly fierce competition from their aggressive counterparts in the Middle East.
With plans underway to add 23 million tons a year in ethylene cracker capacity between 2006 and 2010，Middle Eastern countries such as Saudi Arabia，Iran and Qatar，will be able to produce 30 million tons of ethylene annually by 2010，according to Liu Jie，deputy chief economist of the PetroChina Chemicals&Marketing Co.Approximately 80 percent of the ethylene to be produced is intended for export，Liu added.
Over the same period，Asia-Pacific countries other than China will increase their refining capacity by 1.6 million barrels a day to reach a daily output of 18.4 million barrels.The highest growth in capacity will be seen in India，with the country to account for 62 percent of the region's capacity expansion.
China's frenzied expansion of its own production capacity has also added to oversupply concerns.It is predicted that the country will attain an annual production capacity of 18.3 million tons by 2010，almost triple last year's 9.67 million ton capacity，while China's annual demand for petrochemical products is forecasted to reach 25.5 million tons by the same time.
The Middle Eastern region has great leverage in the production of petrochemical products such as polyethylene due to its abundant feedstocks and low production costs.Ethane，the raw material used to produce polyethylene，only costs around＄37 to＄50 a ton to produce in the region，one-fifth of its price on the international market.
The Middle East is expected to have 13.8 million tons of polyethylene for export annually by 2010，and China's coastal regions are the main target，according to Liu.
Sun Yanyan，from the chemical department of China Petroleum&Chemical Corp.（Sinopec），noted that six countries in the Gulf Region have been lobbying China's Ministry of Commerce to further reduce petrochemical import tariffs.
“Negotiations have been going on for a year so far，and if the lower tariffs are successfully realized，then import volumes into the country will be boosted，”Zhang said.
She added that Sinopec will run their newly upgraded and expanded refineries at full capacity，and will only consider production cutbacks if ample evidence is shown that the Chinese market is unable to consume all the petrochemical products available.
If oversupply of petrochemical products does occur in the Chinese market，Hu Chunli from the Industrial Economic Research Institute under the National Development and Research Commission，believes that the government will step in to help regulate the market at the macro level.
“The Chinese government has already restricted foreign investment in petrochemical products that are already at oversupply levels or which have posed such a trend，”Hu said.
Jiang Xianfeng，a Nanjing-based petrochemical product trader，is optimistic that supply shortfalls will remain，especially for basic petrochemical products，due to China's continued rapid economic growth.There is some support for this position，as in 2020，China's GDP is expected to be four times that of its 2000 figure，according to Qin Weizhong，vice director of Sinopec's development and planning department.
However，Jiang predicted tough times are ahead for petrochemical exporters that have traditionally served the Chinese market，such as those in neighboring Japan，Korea and the Taiwan region.“Their import volume to China is likely to be replaced by producers from the Middle East，”Jiang said.
However，Tadashi Sudo，general manager of Japan's Sumitomo Chemical Corp.，said that exporting petrochemical products directly from Japan has been an overly expensive in practice for a long time now due to high production costs.For this reason，the company has been supplying the Chinese market through its production plant in Singapore.
“We are also considering investing in certain Middle Eastern refineries and petrochemical plants in order to take advantage of their cheap and abundant feedstocks，”Sudo said.
“Maybe someday in the future，China will take in cheap imports from the Middle East，while exporting their own output to neighboring countries with higher domestic production costs such as Japan and Korea，”Sudo added.
Sample 10（2）
The Pros and Cons oFthe Hon9 Kon9 CYberport Project
As the Hong Kong SAR emerged from the Asian recession in March 1999，the Financial Secretary Sir Donald Tsang announced two landmark developments pointing towards Hong Kong's 21st century：Disneyland on Lantau Island，and the“Cyberport”at Pokfulam.The Cyberport project seemed to give a clear signal that Hong Kong was at last poised to take a leading role in the emerging sector of e-commerce and IT.
However，the Cyberport development has been criticized from a number of angles.Some commentators have suggested that it is little more than a residential development with an IT tag（Webb，1999）.The absence of a tender process for the deal seemed to indicate an absence of free competition.Questions were also raised as to whether it is in any case appropriate to create a building to house IT firms“under one roof”.Local broadband capability is already powerful，enabling instantaneous communication around the territory.
In this essay，Iwould like to take a short but critical look at the Cyberport project.Is it a sensible strategic investment？Or is it simply another Hong Kong residential development pretending to be a high-tech miracle？
How can we define the term“Cyberport”？It exists，as yet，in no dictionary，so what follows is tentative：“Cyber”is clearly borrowed from cyberspace，the buzzword of the new millennium.“Port”implies a place where traffic enters（fittingly enough the development is to be built in Telegraph Bay，where the first submarine telegraph came onshore last century）.It also arguably suggests“portal”，a place where the Internet can be accessed.
According to the government there is a rationale behind the project：
“The Cyberport will create a strategic cluster of IT and information services companies and a critical mass of professional talents.It will act as a focal point for these like-minded companies and professionals to exchange ideas，expertise and unleash creative synergy.And benefits will flow through to the whole community.”（Hong Kong Government，12，1999）.
The use of phrases such as“strategic cluster”and“critical mass”suggests that companies will benefit from being physically close to one another.This is，to say the least，an irony in an age of instantaneous broadband communication and online video conferencing.The whole point of such technology is to make it unnecessary to work in the same place.
What are the other perceived benefits of the Cyberport？Again—according to the government—the concrete benefits include stimulus to the“high value added services”end of the economy，job creation，the development of a multimedia production industry，and（somewhat hopefully perhaps）creation of a new tourist attraction.It will also，however，require the initial import of a highly skilled workforce，then a transfer of skills to local personnel，which should encourage local youth to“excel in IT”.Many leading companies have indeed signed letters of intent to buy space in the Cyberport and its success seems assured.（Hong Kong Government，4，1999）.
However，what would happen if the government had not gone ahead with this expensive venture？Would the IT sector have suffered？It is possible that Hong Kong would have lost out further to Singapore and other countries where the government is taking a positive attitude to the construction of business parks.It is also probable that the realignment of the Hong Kong business community to embrace IT and e-commerce companies would also have developed very much more slowly that it has.
Is the Cyberport really necessary，or is it simply window dressing；good public relations for the government and（with its high residential element）a sound traditional property development？（Webb，1999）
In terms of IT infrastructure Hong Kong already has a fully digital telephone system and fiber optic lines covering most of the territory.International bandwidth is also wide and growing.In numerous modern office blocks，you can get as much bandwidth as you want—for example the new developments such as“The Centre”or the“Cheung Kong Centre”.Any IT business which needs modern offices，reliable power supplies and highspeed data lines can have it now！So in terms of office provision，the Cyberport offers nothing that cannot be found already in Hong Kong.
If the Cyberport building is not necessary，how could the government go about encouraging IT development in Hong Kong？As has been noted by various sources in the existing IT sector，Hong Kong education is at present not producing graduates with the caliber and flexibility to adapt to rapidly changing environments.（Lynch，1999）.One of the ironies of the new Cyberport project is that a“critical mass”of skilled workers will have to be imported to make the project attractive to international companies.The critical problem for Hong Kong right now is how to upgrade the educational institutions so that they start providing useful graduates for the 21st century.
Is the Cyberport project going to be good news for Hong Kong？It could be argued that it has served a very useful purpose on the public relations front：The Hong Kong ITsector is now firmly on the international map and companies in the sector are now attracting attention from the international financial community.The government has been seen to act decisively and with commitment to the SAR's economic future at a time when the economic outlook looked none too bright.Even the way in which the contract was awarded—though criticized by many at the time as an example of unfair business practice（the contract was not put out to competitive tender）attracted enormous international attention and，it could be argued，helped to raise the international profile of the project！
It can safely be concluded that whereas the Cyberport may not be a practical necessity for IT companies who wish to relocate to Hong Kong，it has already been beneficial in raising the profile of the local IT sector.Whether it will now go on to make a concrete contribution to the economy remains to be seen.But all the early signs look hopeful.Hong Kong has for long been perceived as a place where property prices and finance are the“core”businesses.For the future，IT and e-commerce will now stand a chance of being as centrally placed in Hong Kong as in the other advanced economies of the world.
Sample 10（3）
Thailand,China Si9n mTO Deal
China and Thailand clinched a bilateral trade agreement on China's entry into the World Trade Organization（WTO）yesterday in Beijing，removing another obstacle to China's 14-year pursuit of membership of the global trade body.
“The agreement not only is testimony to our long-standing relationship but signals the emergence of China's economy as part of the world economy，”Thai Deputy Prime Minister Supachai Panitchpakdi said after signing the agreement with Chinese Minister of Foreign Trade and Economic Co-operation Shi Guangsheng.
The accord reduced to 11 the number of countries or trading blocs with which China has yet to conclude negotiations on WTO entry.
Shi told reporters after the signing ceremony that he was expecting to meet the European Union（EU）Foreign Trade Commissioner Pascal Lamy in the last week of this month to conclude the Sino-EU bilateral WTO negotiation.(https://www.daowen.com)
The EU is by far the largest of China's partners who have yet to conclude a bilateral trade deal necessary for China to enter the WTO.
“After the two rounds of talks in Brussels and Beijing，we have made important progress，”Shi said.
He said he was full of confidence that the two trade partners could find a way that both sides could accept in the forthcoming negotiation.
China has seen its WTO negotiation process remarkably accelerated after it hammered out a landmark agreement with the United States in November last year.
Apart from Thailand，China also wrapped up a trade deal with India in Beijing in late February and completed WTO talks with Colombia on Tuesday in Bogota.
“We have entered the final phase for bilateral WTO negotiations and it won't be long before China's final accession to the WTO，”Shi said.
Supachai said he strongly supported China's entry into the WTO before the initiation of the new round of WTO negotiations.
“It is indeed significant that China might become a member before a new round is launched，”he said.
“China's membership of WTO will bring about more equality in the allocation of resources between WTO member countries，”he added.
Supachai is scheduled to take over from Mike Moore as WTO director general in 2002，as part of a deal ending months of bitter leadership battles that carved deep divides in the world trade body.
Shi said China could co-operate well with other WTO members and support the work of the WTO Secretariat after it formally joined the international trade group.
“China will play a positive and constructive role in the next round of multilateral negotiations，”he said.
Sample 10（4）
Hi9h-tech Boards to Open Soon
China's planned high-tech boards on its securities market—the equity market which is similar to the Growth Enterprises Market（GEM）in Hong Kong—are expected to be launched on June 1 in Shanghai and Shenzhen Stock Exchanges，according to sources close to the top securities regulators.
Over 70 high-tech firms have already been granted approval for the new market by the top regulating authorities—the Chinese Securities Regulatory Commission（CSRC）—including a number of Shanghai-based technology firms，said Fan Yongjin，president of the Shanghai Asset Reshuffling Leading Group Office for the Local Listed Firms.
The office is now in charge of recommending and selecting qualified local high-tech firms that intend to seek funds from the planned equity market.
“The total number of those would-be listed firms could be extended to 200 to 300 during the first stage of the boards，”said Fan.
A hefty increase in numbers is likely as the boards continue to expand and more firms emerge on the home market.
Rumors prevailed in the market that there are still over 1，000 firms waiting for evaluation by the Ministry of Science and Technology and the Chinese Academy of Science—two of the major watchdogs that are authorized to grant the title of high-tech firms.
And only those firms that successfully pass the appraisal of these two institutions can apply for listing on the boards.
China has made repeated calls for the development of the country's high-tech companies，which largely enjoy favorable taxation conditions but face tough funding shortfalls.
To ease the problem of financing the growth of these firms，the State has adopted many favorable policies to stimulate the industry，including the launch of State-backed venture capitals，the introduction of foreign venture capitals and the inauguration of the high-tech boards at Shanghai and Shenzhen Stock Exchanges.
And the government has also promised to minimize the qualifications for the high-tech companies that intend to be listed on the boards，according to Fan.
Technology companies aiming to list on the new boards must first have a minimal twoyear-long history and record profits for one year，compared with three years of profits for other firms seeking listing on the main board.
And the minimum registered capital for the high-tech board firms has also been reduced to 30 million yuan（US＄3.62 million），compared with that of 50 million（US＄6.04 million）for other firms.
Sample 10（5）
Overseas Markets OFFer More Opportunities
The outlook for the building materials industry in China is improving，Huang Jinfeng of the State Administration of Building Materials Industry said.
“Demand from Asian countries outside China，a traditional market for China's building materials，is improving.Their economies are recovering from the financial crisis，”said Huang，director of the administration's foreign affairs department.
Chinese entrepreneurs'growing awareness of the need to“go outward”because of China's possible accession to the World Trade Organization will help increase exports，she said.
“Relevant departments have decided to return value-added taxes paid when enterprises export high-tech building materials products beginning this year，”she said.
“We are talking with the State Economic and Trade Commission about returning value-added taxes for deep-processed products.”
“We are planning to provide financial services for exports of building materials technologies and equipment，”Huang said.
According to Huang，China will hold a building materials exhibition in the Netherlands during the first half of this year to explore European markets.
The time is ripe for us to increase exports to these countries，because the quality of our building materials is adequate to meet the demand，she said.
“We plan to export US＄2.5 billion worth of building materials in 2000，”she said.
China's building materials exports grew steadily in 1999 after a recession stemming from the Asian financial crisis in 1997，according to a report from the administration's information office.
Exports were valued at US＄2.32 billion in 1999，up 6.02 percent from 1998.
Major exports were glass fibre products，sanitary ceramics and asbestos products，the report said.
More than 70 percent of export income was from Japan，Belgium and the United States，the report said.
China imported US＄1.57 billion worth of building materials in 1999，up 28.9 percent，“the majority of which Chinese factories could not produce，”Huang said.