The China investment is valued at $500 million. (more…)

The Chine investment with Brazil will lend Petrobras $10 billion to help extract oil from Brazil’s most recent discovery of reserves on the southern coast.

In return, China’s state oil firm Sinopec will receive 200k barrels of oil a day for the next 10 years.

The China trade news estimates that GM will add as many as 50k in sales through China exports to the US.

Although the strategy is smart and leverages China’s comparative advantage of lower cost labor as compared to unionized Detroit, the US government may have a different view of the situation considering the current US China trade deficit and the US government’s ownership in the flailing auto giant.

The 5.5 percent increase in the US China trade deficit from a month earlier is a result of lower US exports from large manufacturing companies such Caterpillar and Boeing. (more…)

The drop in the Chinese consumer price index makes it the third since February as the China economy fends off deflationary pressures.

Nonetheless, the Chinese government is confident that the Chinese economy will see recovery despite the over reaching impact of the global recession considering domestic spending may pick up due to lower prices. (more…)

The key driver of China’s economic growth in terms of GDP output according to Jun Ma, Deutsche Bank’s Chief Economist for Greater China, will be China’s rapid expansion in emerging market economies as the country leverages its $2 trillion in foreign exchange reserves.

Nonetheless, Ma continued that he still expects as many 18 months for China economy to enter into a new cycle of growth in light of the current global recession. (more…)

The news comes just a day after the China government stated it would continue its US debt buying policy.

The concern over future US dollar weakness by the Chinese government is valid as the US government continues to print money as a means to stimulate the US economy in the wake of the global economic crisis. (more…)

The vice governor of the People’s Bank of China, Hu Xiaolian, stated clearly that the further investment in US treasuries is an integral part of the Chinese government’s foreign exchange reserve management strategy.

While the news is positive, there is a growing concern that the Chinese government is losing interest in US treasuries as the global economic crisis continues to discredit American capitalism. (more…)

The China government Ministry of Commerce defended its decision to block Coca- Cola $2.4 billion investment in China’s largest juice company saying that the decision was based purely on antimonopoly law and should in now way be interpreted as protectionist in nature.

China’s antimonopoly law is less than a year old and could deter future China investment by foreign firms should similar rulings continue. (more…)

The plan would penalize China importers that import products made on factories that emit large amounts of carbon dioxide in effort to reduce greenhouse gases.

Key China trade partners affected include the United States, Canada and Mexico as these three countries are the biggest importers of China goods. (more…)