Business briefs

Technology

Lenovo to take on Apple with LePad 2

The Chinese computer maker Lenovo Group said on March 7

that it plans to launch the second version of its tablet computer LePad this year, as part of its efforts to catch up with Apple's latest iPad 2.

Yang Yuanqing, chief executive of Lenovo, said that Apple's latest upgrade of its tablet computer has set a new level for other computer vendors to catch up to.

But the Chinese company is "fully confident" that it will outperform Apple's iPad in China, the world's second largest computer market after the United States.

He said Lenovo will launch its LePad tablet in China this month and plans to launch the LePad 2 by the end of this year.

Pharmaceuticals

Novartis spends more in 2010

The Switzerland-based pharmaceutical company Novartis said it had invested a total of $700 million (506 million euros) in developing the Chinese market by the end of 2010, a 47 percent increase from 2004.

The company said it initiated

the largest clinical research program in China in 2010, aimed at developing drugs for high blood pressure control that are most suitable for Chinese patients. The program involves some 40,000 volunteers.

Medicine makers may feel the pinch

The ceiling China set on the prices of some multinational drugmakers' self-developed medicines, in line with the nation's efforts to broaden access to healthcare, could significantly affect foreign companies' profits, some experts said.

The policy, announced on March 7 by the National Development and Reform Commission, lowers the retail price ceiling on 162 types of medicines by an average of 21 percent starting May 28 this year.

Of the 230 drugs affected, most of which are antibiotics and circulatory medicines used in treating cardiovascular disease, 158 are manufactured by multinational companies.

Finance

Capital injection planned for CIC

The Chinese government will inject more capital into China Investment Corp (CIC), the country's $300 billion (216 billion euros) sovereign wealth fund, to ease pressures resulting from the nation's high foreign exchange reserves, said Wang Jianxi, executive vice-president and chief risk officer of CIC, on March 11.

Wang said the capital injection plan has been approved by the central government, but the central bank and the Ministry of Finance have yet to reach a consensus on how the plan will be carried out.

"China needs to diversify its high foreign exchange reserves which are piling up rapidly," Wang said.

Retail

Appliance trade-in scheme fuels growth

China's home appliance subsidy program has to date stimulated 152.12 billion yuan (16.69 billion euros) in sales, the Ministry of Commerce said.

As of March 7, the sales volume of new home appliances under the government subsidy scheme reached 40.27 million units while 41.72 million units were traded in to be recycled, the ministry said.

To stimulate consumption, China began a trade-in subsidy plan for home appliance buyers in nine cities and provinces in June 2009, and expanded the pilot program to 28 cities and provinces in June 2010.

SKF rolls out plan for new Jinan plant

SKF Group, the world's top bearing maker by revenue, said on March 8 that it will build a new factory in Jinan, Shandong province, in a bid to support the growing demand from customers in China and elsewhere in Asia.

The total investment amounts to around 590 million Swedish kronor (67 million euros), and the factory is expected to be fully operational by the first half of 2012, said Tom Johnstone, president and chief executive officer of SKF Group.

China Daily-Agencies