NOTE 10 - SHORT TERM DEBT

6 Months Ended

Jun. 30, 2011

Short-term Debt [Text Block]

NOTE 10 – SHORT TERM DEBT

Short term debt at June 30, 2011and December 31, 2010 consisted of the following:

	2011		2010
	(Unaudited)
To Xigu Credit Union
Interest at 11.68%, payable March 20, 2011	$	-	$	487,894
Interest at 13.25%, payable April 28, 2012		498,198		-
To Chengguan Credit Union
Interest at 11.68%, payable March 20, 2011		-		824,269
Interest at 13.25%, payable April 28, 2012		841,677		-
Total Short Term Debt	$	1,339,875	$	1,312,163

The short term debts are renewable based on the past credit of the Company. Interest expense is paid quarterly. There were no other terms or loan covenants relating to these short term loans. On March 21, 2011, the Company repaid the $487,894 loan to Xigu Credit Union and the $824,269 loan to Chengguan Credit Union. On April 29, 2011, the Company borrowed the $498,198 loan from Xigu Credit Union and the $841,677 loan from Chengguan Credit Union.