Taiwan

At a conference ending yesterday, Chinese officials warned US delegates that American arms sales to Taiwan may strain growing relations between the two nations. "Recently, some hard-won advances have been made in cross-strait relations," said one Chinese official, "we certainly don't want something like arms sales to disrupt that."

China has 900 missiles along its coast aimed at Taiwan, who are planning to buy $6.5 billion worth of US weapons, namely Lockheed Martin's Patriot Anti-Missile systems.

China-Taiwan relations have improved drastically in recent years, though the issue still seems to be the most contentious between China and the US, says a Bloomberg.com report.

China

Despite falling exports, China has maintained it's trade surplus, reports the Economist. While exports have fallen, imports have fallen even quicker, they say. Most consumer spending in the country has held up "reasonably well," says the Economist, but with construction projects halted all over the country, raw building material imports -- one of China's biggest imported goods -- has fallen precipitously.

The Economist predicts that with big government stimulus investments planned for infrastructure building in the near future, which will reinvigorate the need for imported raw materials, the surplus may become a deficit in 2009.

China is probably the only country whose credit lending has increased this past year, and continues to do so. The Economist recommends they use this to stimulate domestic demand.

China Down

China's export numbers made their most precipitous decline in a decade in December, reports Market Watch

China & Venezuela, Sittin' in a Tree

Venezuela took control of a $400-million, Chinese-built communications satellite over the weekend.  China built the satellite under contract for Venezuela and launched it in October, reports the LA Times.  

Chavez said the satellite will allow Venezuela to overcome the U.S. "media bombardment" thereby strengthening Venezuelan sovereignty.  The satellite is also expected to bring internet connections to schools across Venezuela and improve the nations health industry via improved IT and medical record-keeping and communicating.   

Venezuela is also waiting on 18 military jet training aircraft this month it purchased from China.

Some see these deals, as well as increased Venezuelan oil buying on China's part, as both a sign of strengthening ties between China and Latin America and waning influence of the U.S. in the region.  

China has also invested in oil production projects in many parts of Venezuela where U.S. firms were booted from not long ago.  

Chavez critics say China is the main beneficiary in these trades and that with oil pricing waning Chavez will not be able to continue such arrangements for long.  

Like a Phoenix . . .

Chinese Premier Wen Jiabao announced today his nation is likely to be the first to emerge from the world's financial sinkhole and anticipated new measures to bolster the Chinese economy in the next few months, reports China Daily.  

Key policies include tax and credit incentives to keep auto sales continuing and, in turn, auto manufacturers working.  

Chinese exports dropped in November for the first time in seven years.  

China

Two of China's major economic hubs, Guangdong and Shanghai, are, like much of the world, facing severe market troubles. As a result, nearly a third of all migrant workers in southern China have returned to their homes throughout the country.   

China-Hong Kong Colabo

Hong Kong and their neighboring province of mainland China have began talks of a first-time economic cooperation plan, reports the South China Morning Post.  They also charge a subscription fee, so that's about all I know about the deal.  

Bird Flu

China's first 2009 incidence of bird flu was reported after a 19-year-old woman died of the disease two days ago. After noting the World Health Organization, Beijing blocked all poultry from other parts of the country from coming into the city while the origins are investigated.