Chronic air pollution and unclear regulations are the major obstacles for most of the United States-based companies operating in China, a survey said.

Of the 477 companies that participated in the annual business climate survey by the American Chamber of Commerce in China, 53 percent said that they experienced difficulties in hiring senior executives to work in China because of the country's chronic air pollution.

This is the first time that air pollution has been cited as a reason by most of the companies that have participated in the survey's 17-year history.

This year's report, conducted in partnership with Bain Co, also said regulatory concerns were highlighted as inconsistent and unclear regulations were found to be the second-biggest business challenge, after labor costs.

Import tax cut on some goods to spur consumption

China cut import taxes on clothing, cosmetics and some other goods starting on Monday to boost domestic consumption.

The latest cuts to import duties will reduce fiscal revenue while boosting domestic consumption, said Vice- Finance Minister Shi Yaobin at a press conference.

The Ministry of Finance said that it will slash duties by half - on average - on suits, fur garments and shoes. A tariff on cosmetics will fall to 2 percent from 5 percent, while a duty on diapers will decline to 2 percent from 7.5 percent.

The cuts will reduce fiscal revenue, said Shi.

With strong purchasing power, Chinese mainland travelers often buy goods as diverse as diapers and handbags abroad to avoid import and consumer taxes back home.

Tuesday - June 2

China, South Korea sign trade pact

China and South Korea signed a bilateral free trade agreement, the largest bilateral FTA deal for China in terms of volume.

Under the agreement signed on Monday, China will abolish tariffs on 91 percent of all South Korean products within 20 years, while South Korea will eliminate tariffs on 92 percent of all goods from China.

The countries began talks in May 2012 covering 17 areas, including trade in goods and services, health care, entertainment, investment and trade rules, as well as e-commerce and government procurement.

Medical and cosmetic surgery services from South Korea are expected to become morewidely available in China as a result of the agreement, which will allow doctors who are licensed in South Korea, including plastic surgeons, to work in China for six months to a year. (Photo 1)

KFC files suit to stop false claims on Internet

Fast food giant KFC said that it has filed lawsuits against three Chinese companies, whose social media accounts spread false claims about the quality of its food.

The postings against KFC include a story that chicken raised at KFC farms were genetically modified and had six wings and eight legs.

KFC, a unit of the United States-based Yum Brands Inc, said lawsuits have been broughtagainst 10 public accounts of the three companies that spread rumors and it has asked for 3.5 million yuan ($564,500) in compensation.

The company filed a plea in Shanghai's Xuhui district people's court asking the three companies to immediately stop the copyright infringement and offer an apology. It said the three companies had operated the accounts on the popular mobile phone app WeChat .

WeChat's parent company declined comment. (Photo 2)

Wednesday - June 3

Credit score website is launched

A website containing the credit history of some Chinese residents and firms has been launched, the latest push to establish a credit rating system in China.

More than 1.13 million pieces of information on factors that affect a business or individual's credit score, such as tax avoidance and failure to follow court rulings, are now publicly available on creditchina.gov.cn, Xinhua News Agency reported.

Compared with some advanced economies, China's credit system is still in its infancy, and it is still not common for Chinese to use credit information providers to check credit scores.

Housing sales surge to new high

Housing sales in May hit the highest level in the last six years' same period, as a string of policy easing filtered through, and buyers' purchasing willingness strengthened significantly, according to a research agency.

New home sales in 30 cities monitored by Ehouse China R D Instituterose 15.5 percent in May over April, higher than sale data recorded in past six year's May, according to the institute's latest report on Monday. In year-on-year terms, sales rose 34.9 percent and rose in 27 of the 30 cities.

Sales in first-tier cities surged 82.7 percent in May over a year ago, after a 59.2 percent rise in April. Second-tier cities rose 25.3 percent and third-tier cities rose 32.1 percent, the report said.

Average new home prices in 100 cities in May rose 0.45 percent month-on-month to reach 10,569 yuan ($1,706) per square meter, according to China Index Academy, the research unit of SouFun Holdings Ltd. Except for a small up-tick in January, this price index has been declining for the past 12 months. (Photo 3)

Thursday - June 4

Bid committee dismisses IOC's snow concerns

The Beijing 2022 Winter Olympics bid committee has dismissed concerns by the International Olympic Committee over potential insufficient snowfall and ecological damage from snow-making in the proposed skiing venue areas.

The apparent lack of abundant snowfall in Beijing and the surrounding areas, which was highlighted in the IOC evaluation report published on Monday, would not affect snow events in the proposed mountain areas should the capital win the bid, Beijing committee officials said.

"Local weather conditions in the mountain regions in Yanqing (northwest Beijing) and Chongli (Zhangjiakou, Hebei province) suggest that abundant snowfall could be expected to cover the venue areas," said Zhao Yinggang, vice-secretary general of the Beijing 2022 bid committee, at a media briefing.

Airports monitor flights to prevent MERS epidemic

Airports in China have strengthened quarantine inspections on inbound passengers from countries that have confirmed cases of Middle East respiratory syndrome (MERS), which has infected 30 people and caused two deaths in South Korea.

The Beijing airport will use infrared thermometers to monitor the temperatures of inbound passengers, and quarantine inspectors will look for those who have fevers, coughs or difficulty breathing.

Authorities are paying close attention to incoming passengers at Dalian International Airport in Liaoning province, where nearly half of the inbound flights are from South Korea.

Provincial health authorities reported that the condition had improved for a South Korean man who flew from South Korea to Hong Kong last week and entered Huizhou City via Shenzhen, and was put under observation in an isolation ward. (Photo 4)

Friday - June 5

Alibaba buys $194 million stake in media firm

China's e-commerce giant Alibaba Group Holding Ltd will invest about $1.2 billion yuan ($193.5 million) for an undisclosedt stake in China Business News, a financial TV andnewspaper company that is part of the state-owned Shanghai Media Group.

Alibaba will create a financial data and information service for Chinese businesses, the e-commerce company said in a statement on Thursday. The envisioned information service, targeted at small and mid-sized enterprises, marks Alibaba's entry into the business of providing news and information for investment.

The two intend to use Alibaba's customer data and cloud-computing technology to create a service that can help small and mid-sized enterprises s make investment decisions, Alibaba said.

China's pet sector is booming

Having a pet has now become a symbol of financial success in China, where consultants Euromonitor forecast the pet care sector to grow by more than half to 15.8 billion yuan ($2.6 billion) by 2019, outpacing the world's biggest market the United States, which is expected to grow just over 4 percent this year to $60.6 billion.

Dogs are by far the most popular pets and dog food sales alone are expected to almost treble to over $760 million by 2019, Euromonitor data shows, as higher disposable incomes make keeping a pet an affordable luxury for more Chinese, particularly in more developed cities.

The loneliness and stress endemic to city life are also driving the pet ownership boom: last year, 30 million households owned a dog, Euromonitor said.