TODAY'S BRIEFS Daily News Update - 5 November, 2008

TODAY'S BRIEFS

China, South Korea discuss $30bn currency swap
South Korea is in negotiation with China for a currency swap worth up to US$30 billion to help it protect against the ongoing global financial crisis, the AFP reported, citing a report by Korean news agency Yonhap. The proposal would expand the two countries' current agreement for a swap of US$4 billion of their respective currencies. Officials from both countries have not confirmed a change in the amount. South Korea's foreign reserves fell in October as the government intervened to prop up the won. As of the end of last month, they totaled US$212.3 billion, down US$27.4 billion from September. China's foreign exchange reserves exceeded US$1.9 trillion in September.

Top domestic airlines boost cooperation
China's top aviation regulator encouraged the country's airlines to work together as the global economic downturn lessens travel demand, Bloomberg reported. Li Jiaxiang, director of the Civil Aviation Administration of China, said he approved of an agreement signed yesterday by the country's top three airlines - China Southern Airlines, Air China and China Eastern Airlines - to cooperate on maintenance in order to cut costs and delays. "The industry regulator would like to see moves that may benefit the industry," Li said. "Still, it's a company decision and it should be market-oriented." He declined to say if consolidation would benefit the industry. The three carriers posted third-quarter losses on higher fuel costs and slowing demand.

Mainland, Taiwan sign flight, cargo agreements
Officials from Taiwan and mainland China signed four agreements in Taipei yesterday in the latest show of firming cross-Strait economic ties, AFP reported. Among the agreements, direct cross-Strait cargo flights will be introduced, with up to 60 round trips per month, while direct passenger flights will be tripled to 108 per week. China will also expand the number of cities with air links to Taiwan from the current five to 21. The two sides also agreed to introduce cross-Strait postal services and pledged to hold future discussions on food security. Direct cargo air links would cut shipping costs by 15-30%, said Chiang Pin-kung, head of the Strait Exchange Foundation and a participant in the talks.

CCB to launch health care fund
CCB International, the investment banking arm of China Construction Bank, will launch a US$731 million fund to invest in China's health care sector, the South China Morning Post reported, citing state media. The fund, to be called China Healthcare Investment Fund, will focus on investments in pharmacy, medical-equipment manufacturing, medical institutions and services. No launch date was given for the fund. It would be the first domestic investment fund specializing in the mainland's health care industry. Experts have urged the country's government to improve the health care options for China's rural population more rapidly.

Nigeria supends $8bn China rail contract
Nigeria's transport ministry has suspended an US$8.3 billion contract with China Railway Construction Corp (CRCC) for a 1,315km rail line in order to "redefine" the scope of the contract, the Financial Times reported. The ministry said the evaluation would take 90 days. The Lagos-Kano line - a project agreed to in the days before a China-Africa summit held in Beijing in late 2006 - accounts for almost 14% of the total value of CRCC's outstanding contracts. CRCC has also signed a US$300 million road project in Nigeria. Shares of CRCC fell 18% in Hong Kong on Tuesday following the news.

Beijing to draft human rights action plan
China will draft its first "national action plan" on human rights to propose ways to "expand democracy and strenghen the rule of law," the Financial Times reported, citing state media. The plan will be drawn up by a panel including government officials and legal and human rights experts. The scope and specific details for plan were not available. Observers say the announcement may be a tactical move to pre-empt criticism ahead of a review by the UN Human Rights Council in Geneva next February. Next year also marks the 20th anniversary of the Tiananmen Square protests, which is likely to prompt renewed debate about political reform on the mainland.

US court rules against DVD player manufacturer
A US court sided with Hollywood film studios and ordered a China-based electronics company to build piracy-thwarting techonology into their DVD players, AFP reported. A US District Court in California issued an injunction against Shenzhen-based Gowell Electronics as part of a breach-of-contract lawsuit filed by the Motion Picture Association of America. The suit, filed in June, accuses Gowell of making DVD players without Content Scramble System anti-copying technology. Gowell has not said whether it would comply with the terms of the injunction.