IN BRIEF (Page 24)

Xiaomi inks multiyear patent deal with Nokia

Xiaomi Corp has acquired a slate of patents from Nokia Corp as the Chinese smartphone vendor steps up efforts to accelerate its global expansion. The two sides said on July 5 that they had signed a multiyear patent agreement, including a cross license for each company's essential cellular standard patents. Xiaomi also acquired patent assets from Nokia as part of the transaction. Xiaomi, whose products and services are available in 30 countries and regions, is ramping up efforts to expand its overseas presence. The intellectual property partnership with Nokia, once the world's biggest phone maker, can help it tackle potential legal disputes overseas. Xiaomi did not disclose details of the patents it acquired or how much the deal was worth. The move came after Xiaomi purchased about 1,500 patents from Microsoft Corp last year to expand its technology portfolio.

Nation's service trade deficit widens

China's service trade deficit rose by 17.9 percent year-on-year in the first five months of the year to 688.75 billion yuan ($101 billion; 89.2 billion euros; ￡78.3 billion), official data showed on July 4. The Ministry of Commerce says the deficit came mainly from tourism, transportation and the use of intellectual property rights, while the consulting, information, and processing service sectors saw a surplus. Exports of services rose by 4.6 percent to 567.94 billion yuan, and imports rose by 11.5 percent to 1.26 trillion yuan in the first five months. "Although the service trade deficit widened, China still saw an overall surplus when taking into consideration both goods and services," says Xian Guoyi, head of the service trade department at the ministry. "(We) should have a correct attitude toward a larger service trade deficit," Xian says. A deficit from production-related services will help improve China's manufacturing capability, while a deficit for services related to daily life can encourage the upgrading of consumption and improve people's lives, he says.

China-Russia RMB fund set up

China Development Bank, one of the country's three policy banks, and the Russian Direct Investment Fund announced on July 4 the establishment of the China-Russia RMB Investment Cooperation Fund. The memorandum of understanding was signed by the two sides in Moscow. The China-Russia RMB Investment Cooperation Fund is expected to facilitate the establishment of a simplified framework for direct investments with settlements in national currencies. The investments will total 68 billion yuan ($10 billion; 8.8 billion euros; ￡7.7 billion). The investment activities will focus on Russian and Chinese projects, including the Belt and Road Initiative. The RDIF will implement the project via the Russia-China Investment Fund created jointly by the RDIF and China Investment Corp, while CDB will implement the project via wholly owned subsidiary China Development Bank Capital.

Gazprom to start supplies via Siberia

Russia's largest natural gas producer, Gazprom, will start supplying gas to China through Siberia on Dec 20, 2019, Gazprom Chief Executive Alexei Miller told reporters on July 4, after a meeting with officials from China National Petroleum Co. CNPC Chairman Wang Yulin and Gazprom's Miller met during the visit to Moscow by President Xi Jinping and signed a China-Russia supplementary purchase and sale contract, the State-owned Chinese company said on its website on July 5. It did not provide further details. The new pipeline, dubbed the "Power of Siberia", has a planned annual capacity of 38 billion cubic meters.

Foreign agencies may rate bonds

China has allowed international rating agencies to rate onshore bonds, provided they have an onshore branch registered with the People's Bank of China. The ruling was released on July 3, the first day of operation of the new Bond Connect program, which gives offshore investors direct access to the Chinese mainland's onshore bond market from Hong Kong. The PBOC, the regulator for rating agencies, outlined in a notice the requirements for assigning ratings to onshore issuers and notes listed in the interbank bond market. Domestic and foreign agencies should have sound corporate governance and must not have been involved in any major illegal acts in the past three years.

Retail sales to maintain growth

China's retail sales will continue to see growth of about 10 percent this year, thanks to the stabilizing economy and better policy support, an official report forecast on July 3. Total value of online retail sales will grow by about 25 percent, much higher than growth rates for brick-and-mortar outlets, including shopping malls and supermarkets, according to the retail sector report made public by the Ministry of Commerce. Clear improvement in the country's economic performance was one of the major reasons behind the positive forecasts, the report said. China's economy grew by 6.9 percent year-on-year in the first quarter, the fastest pace in six quarters. Retail sales of consumer goods in the first five months of the year rose by 10.3 percent.

Autren partners on healthcare

Shenzhen-based real estate developer Autren Holding Group has signed an agreement with the Strasbourg, France-based healthcare and surgical operation service provider IRCAD to open five international healthcare centers over the next three years in first-and second-tier Chinese cities including Beijing, Shanghai and Jinan, to further integrate healthcare into its property development business. Backed by IRCAD, these new centers will be supported by technologies including artificial intelligence and big data.

China offers support to Ghana energy program

China offered a support package on June 30 for Ghana's renewable energy program in off-grid communities. The package, worth 20 million yuan ($3 million; 2.6 million euros; ￡2.3 million) and including 2,000 solar home systems, 1,000 air conditioners and 500 LED solar streetlights, were presented to the University of Renewable Energy through the Ministry of Energy by Chinese Ambassador to Ghana Sun Baohong at a ceremony. Sun said the support was part of the Chinese government's assistance to developing countries in addressing climate change. The ambassador reiterated the great importance China attached to climate change as a responsible major developing country, for which reason it had taken concrete measures to develop green and low-carbon economy. The solar equipment will be installed in communities that are off the national grid, including island communities.

Cote d'Ivoire dam begins generating power

A ceremony was held on June 30 in Cote d'Ivoire to officially mark the initiation of electricity generation at Soubre hydroelectric power station, which was built by a Chinese company. Launched in February 2013, the project started generating electricity on May 25, about eight months ahead of schedule, according to the builder, Sinohydro Corp, which is under PowerChina. Chinese Ambassador to Cote d'lvoire Tang Weibin said the completion of the power station would greatly improve the power supply in the country, providing solid foundation for the country's industries, including mining, to develop and inject vitality into its socioeconomic development. With an installed capacity of 275 MW, the 4.5-km-long Soubre dam is the largest of its kind in the West African country. The cost of the project was about $572 million (505 million euros; ￡442 million), of which 85 percent percent was financed by China and 15 percent by Cote d'Ivoire. The construction of the power station has created thousands of jobs and is expected to improve people's lives in the country.

(China Daily European Weekly 07/07/2017 page24)