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China Briefings

Reports on China issued by Samsung Economic Research Institute

China Business Intelligence No. 137

China Business Intelligence No. 137

Samsung Economic Research Institute Beijing Office

Oct. 21, 2009

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Highlights:

I. Economy

Overproduction and overlapping construction were the main issues in the meeting of the State Council of China chaired by Premier Wen Jiabao in August 2009. Along with steel, cement, and glass industries, polysilicon, and wind power generation equipment industries are also in overproduction. The report analyzes the cause behind the production glut in new energy industries along with intensified regulations to cut greenhouse gas emissions and rising energy prices.

II. Industry

Amid rising popularity of highly energy efficient products, competition is flaring up throughout the flat panel TV industry to take the initiative. In October 2009, the Chinese government released a guideline on the introduction of the "energy consumption efficiency rating indication system" for flat panel TVs. Under this guideline, the government plans to enable only flat panel TVs which indicate energy efficiency ratings to be distributed in China from 2010. Along with the implementation of the scheme to improve the energy efficiency of flat panel TVs, the Chinese government is also working on initiatives to drive the color TV manufacturing industry towards upgrading their products.

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