Leading science park to expand

China's most successful science park, Shanghai-based Zhangjiang high-tech park, will soon get the go-ahead from the Shanghai municipal government to develop a new innovation park on a 70-hectare site, says Zhu Shouchun, Zhangjiang's vice-president.  

Jointly developed by the Zhangjiang Group and the Chinese Academy of Sciences (CAS), the CAS-Pudong innovation park will focus on new materials, energy, industrial biotechnologies, and space technologies; Zhangjiang is currently famous for its semiconductor businesses and life-science start-ups. As well as establishing commercialisation platforms for CAS institutes in Shanghai, CAS will open a university with relevant academic disciplines to support the new businesses. The new innovation park will enjoy the same lower tax rate as the current Zhangjiang science park, says Zhu. 

Energy price hike 

After keeping energy prices static since October 2007, China's National Development and Reform Commission (NDRC) has increased the price of petrol and diesel by 1000 yuan (US$147) per tonne - a hike of about 14 per cent. The cost of electricity has also risen by about 5 per cent per kilowatt hour.  

The price adjustments could reduce heavy losses made by Chinese energy giants such as Sinopec, PetroChina and Huaneng. There is still a 40 per cent gap in oil prices between China and the international markets. Analysts say the gap may force the NDRC to increase energy prices after the Beijing Olympics.  

Meanwhile, in a bid to help fight inflation, the government will offer subsidies of 19.8 billion yuan to transport and farming sectors. 

Bayer Healthcare acquires OTC business 

Bayer Healthcare, the German pharmaceutical giant, has bought an over-the-counter (OTC) medicine business from Chinese pharmaceutical firm Topsun for 1.07 billion yuan (US$158 million). The business includes manufacturing facilities and brands for three popular OTC cough and cold medicines in China.  

Bayer Healthcare currently focuses on prescription drugs but its new purchase will allow it to tap into the lucrative Chinese OTC market, which is growing at a rate of 20 per cent per annum.  

With the acquisition, Bayer Healthcare's 2008 sales in China are expected to reach about 4.5 billion yuan (US$662 million). Topsun, based in Jiangsu province, now plans to change direction and focus on developing traditional Chinese medicines.