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ChinaIndustryMonitorChemicalsVol.501January2005Economy&SectorHighlightsInsidethisIssue•Economy&SectorHighlights•ForeignDirectInvestment(FDI)grew22percentinrealtermsinthefirst11monthsof2004.ActualFDIstoodat•NewsItemsUS$57.553billion.InthesameperiodChinaapprovedatotalof39,291newoverseas-investedcompanies,up7.31•RecentPerformancepercentfromthesameperiodlastyear.FDIforthemonthofNovemberstoodatUS$3.75billion,upjust7percent•InvestmentTrends&Projectsfromayearearlier.•MergersandAcquisitions•AccordingtoMinistryofCommerceandgeneral•CompanyScan:PetroChinaCo.Ltd.administrationofcustoms,China'stotalvalueofimportsandexportsreachedUS$1,038.38billion,up36.5percent•IndustryOutlookfor11monthsendingNovember2004fromthesameperiodlastyear.ThisisthefirsttimethatforeigntradevolumehassurpassedUS$1,000billion.•China'sindustrialoutputgrowtheasedto14.8percentinNovember,itsslowestpacein18monthsasgovernmentmeasurestocurbtheeconomyshowsignsoftakingeffect.AccordingtotheNationalBureauofStatistics(NBS),productionslowedfrom15.7percentinOctoberand17.9percentforthesamemonthlastyear.Outputforthefirst11monthsof2004grew16.8percent,unchangedfromthesameperiodin2003.•China'sinflationrateroseatitsslowestpaceinninemonthsinNovember,keptincheckbylowerpricerisesforfoodandeasingthepressureforfurtherinterestratehikes.AccordingtoNBS,theNovemberConsumerPriceIndex(CPI)wasup2.8percentyear-on-year,comparedwith4.3percentinOctoberand3.0percentinNovember2003.UrbanconsumerpricesinNovemberrose2.4percentyear-on-year,whileruralCPIwasup3.6percent.•November2004witnessedmostofthemajorchemicalsoutputgoupascomparedtoOctober2004.•Therecenttimeshavewitnessedsignificantprojectsbeingannounced/commissionedintheChinesechemicalsector.Mostoftheprojectsannouncedareinthecommoditychemicalssegment,moresointhepetrochemicalssector.•Chinahasannouncednewpoliciesforsettingupnewchemical,petrochemicalandpolyesterunits.Thepolicymainlycoversminimumcapacitiesforthenewunitstobesetup.www.cygnusindia.comP