Chinese textile firms' profits declined for the first time in ten years as a result of reduced overseas demands. The decline started during the second half of 2008 when the financial crisis began impacting on the world economy.
 
Textile firms took in about 100 billion yuan in profits in the first 11 months of last year, a fall of1.77 percent over the same period in 2007.
 
Statistics shows that losses for textile firms added up to nearly 23 billion yuan from January to November last year. That is almost double the figure for the same period in 2007.

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A higher value-added tax, or VAT, on 82 mineral products came into effect on Thursday.
 
China raised the VAT rate for minerals two months ago to help ease burdens on producers. Mineral producers welcomed the policy but analysts are uncertain as to whether the new tax rates can help bolster the sector.
 
The VAT rate for such mineral imports, such as copper, nickel, aluminum as well as ore concentrates rose to 17 percent from 13 percent, according to the Ministry of Finance and the State Administration of Taxation.
 
In addition to higher VAT rates, the country's State Reserve Bureau, which maintains stockpiles of key raw materials, was reported to be discussing a purchase of 300,000 tonnes of aluminium at a premium price. The move is aimed at increasing prices and supporting producers.
 
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The State Council has agreed to start issuing licenses to mobile phone operators for third-generation high-speed networks, better known as 3G.

3G networks handle faster data downloads, allowing cell phone users to make video calls or watch TV programs.

The top three telecom giants are expected to receive 3G licenses at the beginning of 2009. China Mobile will use TD-SCDMA, while China Unicom and China Telecom will use WCDMA and CDMA 2000, respectively.

Li Yizhong, head of the Ministry of Industry and Information Technology, says China will invest 280 billion yuan in 3G networks over the next two years.