DANWEI – 523 pharmaceutical companies have failed new manufacturing standards in China, and all of these companies will now have to close shop. With evaluations in the industry set to continue in to 2015, China’s pharmaceutical industry is undergoing a major shake out. Also this week: J&J trademark revoked; China Resources acquires Moutai brewery; and more.

Much hope for liberalisation attends the launch of the Shanghai Free Trade Zone, but the devil may be in the lack of detail.

Economists have been debating the likelihood and impact of prolonged Sino-Japanese trade disruption following recent violent anti-Japanese protests in a number of Chinese cities.

According to the People’s Bank of China, the central bank, funds outstanding for foreign exchange, an indicator used to track monthly foreign exchange growth in mainland China, recorded a negative growth of Rmb60.571bn in April (see chart). We believe this is part of the reason for the central bank’s recent RRR cut. If foreign exchange growth continues to be negative in May or only records small positive growth, it will provide the central bank with more incentive to make another RRR cut in near term to address the economic slowdown issue.

A proposed new US-led trade area appears intended to pressure China, but will it work?

The US battery maker has come under the spotlight for allegedly causing lead poisoning among children in the proximity of its Shanghai plant.

The budget hotel operator is expected to widen its lead in the market through the acquisition of Motel 168.