Apple Inc has set up its first Chinese research and development center in Beijing, with registered capital of 100 million yuan ($15 million; 13.4 million euros; 11.8 million), as the US tech giant wrestles with tumbling smartphone sales and mounting competition from local rivals. The R D unit will have about 500 employees and its total investment will eventually reach 300 million yuan, according to the official WeChat account of the administrative committee of Zhongguancun Science Park, where the center is situated. The unit will focus on developing computers, software, audio and video devices as well as other consumer electronics, for Apple's customers in China and around the world.

Contract signed for $2b US paper mill

A Chinese company's planned $2 billion, 344-hectare paper mill in the US state of Virginia took a significant step forward when a major engineering and development contract was signed in September. The contract, signed with Jacobs Engineering Group Inc, is for developing the overall site. It will include work on the design of the new plant's pulping facilities and units for tissue-making and fertilizer production using the proprietary technology of Vastly, also known as Tranlin Inc, which is the US subsidiary of Shandong Tranlin Paper Co Ltd. "It's a complex project and, as Jacobs lays out the design for the site, a major part of the work will involve all the environmental permits that will be required," said John Stacey, senior vice-president of marketing and product development at Vastly.

Bank takes over Indonesian lender

China Construction Bank Corp took another step in its globalization drive by completing the acquisition of a majority stake in PT Bank Windu Kentjana International Tbk. This year, the second-largest Chinese commercial lender by assets received approval from Chinese and Indonesian regulators for the acquisition of a 60 percent stake in Jakarta-based Bank Windu. Listed on the Indonesia Stock Exchange, Bank Windu has a network of 82 offices throughout Indonesia. As of the end of 2015, its total assets hit 10.09 trillion Indonesian rupiah ($770 million; 687 million euros; 605 million) and total liabilities reached 8.68 trillion rupiah.

Asset allocation restrictions scrapped

China's securities regulator said on Sept 30 it has removed asset allocation restrictions on qualified foreign investors to allow them greater freedom to invest. In principle, neither the allocation mix for investors under the qualified foreign institutional investors program nor the RMB-denominated qualified foreign institutional investors program will be restricted, said Deng Ge, spokesperson for China's Securities Regulatory Commission. Previously, China required overseas investors to put at least 50 percent of their assets into stocks, with a cash ratio not exceeding 20 percent.

Fast-food supplier fined over meat scandal

Shanghai Municipal Food and Drug Administration on Oct 2 ordered a major fast-food chain supplier and its parent company to pay fines for producing and selling substandard products. According to the authority, Shanghai Husi Food Co. and OSI Group's China office were fined about 17 million yuan and 7.3 million yuan respectively. The district market regulators have also added the two companies to a blacklist of those who have committed serious legal violations, meaning stricter regulation in future. In a statement, the two companies accepted the punishment and promised to pay the penalty on time. Husi is a subsidiary of US-based global food processor OSI Group and a former supplier to major fast-food chains, including McDonald's, Yum!, KFC and Pizza Hut.

( China Daily European Weekly 10/07/2016 page24)