China invests in Canada oil projectChina is helping to finance the development of a proposed $5.51 billion dollar oil pipeline to Canada’s West Coast that would open the Asian market to Canadian crude， which is now chiefly consumed by the U.S.State-owned China Petroleum Chemical Corp.， or Sinopec， is among a consortium of Canadian oil producers and Asian refiners investing $100 million in Enbridge Inc.’s proposed Northern Gateway pipeline， Enbridge Chief Executive Pat Daniel said during a Web cast investor conference on January 20.The Northern Gateway pipeline would pipe an average of 525，000 barrels of crude oil a day from Canada’s oil-sands region to a port in British Columbia， from which it would be shipped to Asian markets. Regulators aren’t expected to rule on whether the project can go forward until next year. If approved， construction is scheduled to be completed in 2016.Canada’s oil sands hold an estimated 170 billion barrels of oil， making it the second-largest oil reserve in the world， after Saudi Arabia’s. The U.S. is the only export market for Canadian crude oil， and Canada is the U.S.’s largest single supplier.“We think it is hugely in Canada’s national best interest to have a second outlet for our crude oil，” Mr. Daniel said， ”...so that we can become a price-maker with regard to crude-oil pricing， instead of a price-taker.”Sinopec and other investors have put up $100 million to help Northern Gateway get through the regulatory process， which includes producing environmental-impact studies and consulting with native and environmental groups — some of which oppose the project.Mr. Daniel said Enbridge itself has already spent $100 million on the regulatory process. The Calgary-based pipeline company applied for approval to build Northern Gateway in May， and expects Canada’s federal energy regulator to approve it by the middle of 2012.The proposal has met fierce criticism from native groups and environmental nongovernmental organizations. Some warn of the risk of spills from the pipeline or from oil tankers， while others are chiefly opposed to further growth of the oilsands industry， which has come under fire for its substantial greenhouse-gas emissions and fears of water contamination.Mr. Daniel said he is confident Enbridge could win over opposition. The company in November proposed giving a 10% equity stake to native groups in an attempt to win them over， Daniel said. (Wall Street Journal)ICBC acquires 80% of Bank of East Asia USAThe Industrial and Commercial Bank of China (ICBC) and Hong Kong-based Bank of East Asia had reached and signed an agreement in which ICBC would pay 140.23 million U.S. dollars to buy 80 percent interest of Bank of East Asia USA， the Hong Kong bank said late on January 23 in a statement.Bank of East Asia will retain the remaining 20 percent stake in Bank of East Asia USA， and the two banks signed the agreement in Chicago on Jan. 21， according to the statement.Upon completion of the transaction， Bank of East Asia will have the put option to sell its remaining shares to ICBC in accordance with the terms and timeline specified in the agreement， it said.Both ICBC and Bank of East Asia are seeking the necessary regulatory approval in the U.S. and China. Once the deal was completed， ICBC would be responsible for the operation and management of Bank of East Asia USA.The transaction will create a win-win situation for both parties， said ICBC Chairman Jiang Jianqing.The acquisition would enable ICBC to establish a solid presence in the U.S. With a commercial bank license in the U.S.， ICBC can further expand its retail banking business and operating network across the nation， and ultimately enhance its market position， he said.Bank of East Asia Chairman and Chief Executive David Li said the transaction will further optimize the allocation of the bank’s resources and strengthen financial services in the major markets where Bank of East Asia operates.Successful completion of the transaction is subject to approval from China Banking Regulatory Commission， the Hong Kong Monetary Authority， and U.S. Federal Reserve Board， according to the statement. (Xinhua)CSR， GE to form joint ventureChinese railway equipment maker CSR Corporation Ltd. and US General Electric Co. will form a joint venture in the U.S. with a high-speed railway technology transfer， according to a memorandum signed between China’s Ministry of Railway and GE.As early as December， CSR announced it would set up a$100 million 50-50 joint venture with GE to bid for US highspeed railway and urban rail projects.The venture hopes to win two high-speed railway projects in Florida and California， and with its strong position in highspeed technology， CSR will expand the venture’s reach to other U.S. projects and markets outside the U.S.， analysts said.But it is unknown what technologies will be transferred and how much GE will pay for them. If the deal is done， it will be the first time China exports its high-speed rail technologies.(China.org.cn)China， US reach $45 billion export dealsChina and the United States on January 19 agreed on $45 billion in US export deals and to give US companies greater access to China’s $88 billion-plus government contracts market at the start of President Hu Jintao’s four-day state visit.White House officials said the agreements included a $19 billion contract to buy 200 Boeing aircraft for delivery between 2011 and 2013.“From machinery to software， from aviation to agriculture， these deals will support some 235，000 American jobs —and that includes many manufacturing jobs，” US President Barrack Obama said at a joint press conference with Hu.Another deal involving GE builds on an existing partnership with the Chinese Ministry of Railways to bring Chinese high-speed rail technology to the United States， and for GE to manufacture locomotives for China.The White House also announced deals in various stages of development involving Honeywell， Caterpillar， Westinghouse Electric， a unit of Japan’s Toshiba Corp， and other companies. (China Daily)
