December 21, 2007 |
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U.S.: China not manipulating currency
Source: Xinhua News | Updated: 12-19-2007
China is not manipulating its currency to gain unfair trade advantage, the U.S. Treasury Department said Wednesday in a semiannual report to Congress.
"Treasury concluded that neither China nor any other major trading partner of the U.S. met the requirements for designation" as a manipulator of their currency, the report said.
However, the report said the Chinese yuan remains severely undervalued against the U.S. dollar, claiming the recent movement of the yuan had been "too limited and modest."
The Treasury issues the report twice a year according to a 1988 law, which requires the department to analyze trading partners' foreign exchange policies and determine whether currency manipulation to gain unfair trade advantage is occurring.
Under the law, economic sanctions can be imposed on countries found in violation.
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China rebukes U.S. presidential hopeful's remarks of toy import ban
Source: Xinhua News | Updated: 12-20-2007
China on Thursday criticized U.S. presidential hopeful Senator Barack Obama's remarks of banning Chinese toys as "unobjective" and "unwise".
A vast majority of Chinese products are reliable and safe on quality, Foreign Ministry spokesman Qin Gang told a regular press conference.
China has repeatedly stated its stance on product safety, said Qin in response to Obama's remarks.
"China attaches great attention to product quality. A series of laws and regulations have been put into effect and effective measures have been implemented these years," he said.
No country has products that 100 percent up to standard, Qin said. "It is not objective and unwise to say no to all products due to the low quality of a small part of products," he said.
"We should not take a one-sided approach to the issue of products' safety," Qin said.
He called on American consumers to trust Chinese products and hoped Chinese products could add festive atmosphere to them during the coming Christmas holidays.
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China, EU officials meet on Myanmar issue
Source: Xinhua News | Updated: 12-19-2007
Wang Jiarui, head of the International Department of the Central Committee of Communist Party of China (CPC), met on Wednesday with Piero Fassino, the EU Special Envoy for Myanmar.
According to a press release, the two exchanged views on the current Myanmar situation and briefed each other's standpoint on the issue.
Wang said China wanted to see stability, democracy, development and reconcilement achieved in Myanmar. It was willing to continuously make constructive efforts for the issue.
He also urged the international community to make efforts to enhance mutual trust and push forward dialogue with Myanmar.
Fassino said the EU appreciated China's contribution to maintaining a stable situation in Myanmar. He hoped to keep close communication and collaboration with China and other Asian countries.
The Italian, who was appointed the EU's special envoy on November 6, was on an Asian tour that started with China to discuss the Myanmar issue. He was also expected to visit India, Indonesia, Thailand, Malaysia and Vietnam.
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China cracks 29,800 fake food cases
Source: Xinhua News | Updated: 12-20-2007
China's commerce authorities ferreted out 29,800 fake and substandard food cases and ordered the withdrawal of 1,253.5 tons of substandard food from the market in the past four months.
A total of 192,400 unlicensed food shops were closed and 945 tons of unqualified pork were tracked down from late August to the middle of December, according to the State Administration for Industry and Commerce.
To address food safety issues, the Chinese government launched a four-month nationwide campaign in late August to crack down on unlicensed food shops and suppliers and on sales of food products without quality and inspection certificates.
The target has been accomplished in less than four month, said a spokesman with the administration.
Vice Premier Wu Yi said last month that food safety was a highest priority of the government and the country's efforts to improve food quality was showing obvious results.
"This year, the government has taken unprecedented special action to ensure product quality and food safety," she said, adding China aimed to set up "a monitoring network" to cover the whole society and the entire process of food manufacturing and selling.
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Anti-corruption website crashes on first day
Source: Xinhua News | Updated: 12-20-2007
The website of the National Bureau of Corruption Prevention (NBCP) crashed on Tuesday, just hours after its launch, as droves of people logged on to complain about corruption among officials.
The website (yfj.mos.gov.cn) was closed for most of the afternoon, Beijing Youth Daily reported.
An NBCP official, who did not want to be named, confirmed the breakdown had occurred.
"Repairs were carried out soon after the website broke down and normal service has now been resumed, he told the Xinhua News Agency.
"The number of visitors was very large and beyond our expectations," he said.
As of 4 pm yesterday, visitors had left 22 pages of messages in the website's guest book.
While many of them referred to report specific cases of official corruption, these were redirected by the webmaster to other sites, such as that of the Ministry of Supervision.
Other visitors made calls for the strengthening of the government's anti-corruption efforts, and comments about the need for special attention to be given to cases involving institutes of higher education and grassroots governments.
"The corruption problem in China is a fatal illness. Establishing more institutions will not solve the problem," one comment read.
The enthusiasm that greeted the launch of the website reflects the growing frustration felt by the public toward corruption at government level, which has been accentuated by several high-profile cases in recent years.
Several senior officials, including Qiu Xiaohua, the former director of the National Bureau of Statistics; Zheng Xiaoyu, the former head of the food and drug administration; and Chen Liangyu, the former Party head of Shanghai, have been found guilty of serious corruption.
Last year, more than 90,000 officials were disciplined, according to official figures.
The NBCP was set up on September 13, with Ma Wen, the Minister of Supervision, as its head.
The bureau has been entrusted to collect and analyze information from the banking, land use, medicine and telecommunications sectors, among others, and to share it with prosecuting organs, courts and the police.
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Chinese nuclear envoy in DPRK pushing forward six-party talks
Source: CCTV | Updated: 12-19-2007
Chinese Vice Foreign Minister, Wu Dawei, is visiting the Democratic People's Republic of Korea. He's there to push forward the process of the six-party talks on the Korean peninsula nuclear issue.
Foreign ministry spokesman, Qin Gang, says Wu and his DPRK counterpart, Kim Kye Gwan, have discussed the current nuclear situation and future efforts. Qin also says six-party talks have achieved positive progress so far, and the momentum should be maintained. He says all parties concerned should increase mutual trust and work actively to fulfill their agreements.
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China hopes inter-Korean relations improved
Source: Xinhua News | Updated: 12-20-2007
China hopes the two countries on the Korean peninsula will continue to improve ties through dialogue and exchanges, Chinese Foreign Ministry spokesman Qin Gang said at a regular news conference on Thursday.
Qin made the comment when answering questions on the future inter-Korean relations after people in Republic of Korea (ROK) elected the new president Lee Myung-bak.
"China congratulates Mr. Lee on becoming the new president of the ROK, and is willing to work together with the ROK to advance the bilateral comprehensive and cooperative partnership," he said.
China hopes that the peace and stability on the Korean Peninsula will be maintained, Qin said, adding that improved ties between the two countries are beneficial to people in both countries.
"China is willing to develop the friendly cooperation with the Democratic People's Republic of Korea (DPRK), and at the same time maintain the comprehensive and cooperative partnership with the ROK," he said.
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China denies selling J-10 fighter jets to Iran
Source: Xinhua News | Updated: 12-18-2007
China on Tuesday denied selling J-10 fighter jets to Iran, saying the reports were "groundless" and "irresponsible".
Foreign Ministry spokesman Qin Gang made the remarks in response to a reporter's question at a regular press briefing.
"China has never consulted with Iran on the so-called fighter jets issue, and has no consideration in this regard," Qin said.
The Chinese government always takes a prudent and responsible attitude towards arms exports and imposes strict controls over such exports according to China's international obligations and domestic laws and regulations, he said.
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China urges Vietnam to prevent protests from harming bilateral ties
Source: Xinhua News | Updated: 12-18-2007
China on Tuesday urged Vietnam to take efficient measures to prevent protesting incidents targeting China from happening again.
Foreign Ministry spokesman Qin Gang made the remarks here in response to a question concerning recent protests in Vietnam targeting China.
The protests happened in Vietnam's two cities, Hanoi and Ho ChiMinh City, on Sunday, while similar incidents took place on Dec. 9,according to Qin.
"China pays close attention to protests in Vietnam targeting China," he said. He urged Vietnamese leaders to take effective measures to stop it and avoid bilateral ties from being hurt.
Several hundred demonstrators marched near the Chinese Embassy in Hanoi and its consulate in Ho Ch Minh City on Sunday, protesting against China's sovereignty over the Xisha and Nansha islands, according to Vietnamese news reports.
Qin said earlier that China had indisputable sovereignty over the South China Sea and the adjacent waters. This was China's consistent stance.
Leaders of the two countries had exchanged views on this issue several times and agreed to settle the dispute through dialogue and consultation to safeguard the stability of the South China Sea and Sino-Vietnamese relations, he added.
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Sino-Indian anti-terror drill begins
Source: China Daily | Updated: 12-20-2007
China and India will hold their first joint anti-terror military drill starting tomorrow - a sign of growing military exchanges and mutual trust between the two neighbors.
Codenamed "Hand-in-Hand, 2007", the military exercise will be held in Southwest China's Yunnan Province.
The weeklong drill will draw about 100 troops from each country, according to a brief statement from the foreign office of the Ministry of National Defense.
"The joint training is aimed at enhancing understanding and mutual trust between Chinese and Indian armies and strengthening their exchanges in the anti-terror areas," the statement said.
"It is also aimed at deterring the 'three evil forces' - separatists, extremists and terrorists - and promote the strategic partnership for peace and prosperity between China and India."
The drill, experts said, reflects the growing mutual trust and understanding, and will further promote trust building and exchanges between the two militaries.
"It will definitely help strengthen the mutual trust between the two countries, and the militaries in particular, given that they have an episode of unpleasant history," said Sun Shihai, a research fellow at the Chinese Academy of Social Sciences.
In addition to its symbolic significance, Sun said the joint training is also of solid "substance" because the two countries are sometimes victims of the "three evil forces".
Despite the small scale of the drill, Sun said it is a "good starter".
Swaran Singh, associate professor at the School of International Studies at New Delhi-based Jawaharlal Nehru University, said: "This reflects the growing mutual trust and understanding between the two sides, including between their military establishments."
China and India last year signed a memorandum of understanding to institutionalize training and exercise exchanges and other contacts between the two militaries.
Since then China and India have been sending officers to each other's military institutions for training, and military delegations have been visiting each other on a regular basis.
"Hopefully, this momentum will pick up in the coming years and China and India can be a model of military cooperation among Asian countries," Singh said.
In 2003, the two nations held their first joint naval search and rescue exercises in the East China Sea.
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Tianjin becomes new base for military-to-civilian technology transfer
Source: Xinhua News | Updated: 12-19-2007
Binhai New Area, a rising outpost for China's financial reform, has also emerged as an incubator for industries that adapt military products to civilian use.
Several projects would be based in the region, which is 120 kilometers southeast of Beijing and covers 2,270 sq km. The potential list of projects involves aviation, aerospace, shipbuilding, electronics, new materials and new energy, according to a strategic cooperation agreement signed between the Commission of Science Technology and Industry for National Defense (CSTIND) and the Tianjin Municipal Government on Tuesday.
In this area, venture capital firms, investment companies and China's first locally-invested private fund, Bohai Industry Investment Fund, will be encouraged to invest in military enterprises that produce items for civilian purposes.
Local companies, including private firms, can also participate in the shareholder reforms of military enterprises through equity investment so as to diversify the shareholders of military firms, which remain largely state-owned.
Research and development (R&D) centers will be built to facilitate the development and application of technologies with civilian and military purposes.
Director Zhang Qingwei of the CSTIND said the agreement charted out the direction of future cooperation and set priorities. It also defined specific policies and measures.
The CSTIND will provide capital subsidies and discounted loans to these projects. Meanwhile, the Tianjin Municipal government will offer a range of incentives, such as capital support for R&D centers and service-sector firms. There will also be tax relief for these types of organizations on revenues generated from R&D, technical transfers and consulting.
Military companies, once designated by the local authorities as new high-tech enterprises, will get a concessional rate on corporate income taxes of 15 percent, 10 percentage points lower than the national standard for both domestic and foreign-invested companies. Land use costs for these firms will also be the minimum allowed by the central government.
The agreement formalized what had been happening for some time in this port city. Military companies had increased their presence with projects such as a production base for China's new-generation heavy-lift launch Vehicle, installed by the China Aerospace Science and Technology Corporation, and a shipbuilding and repair base built by the China Shipbuilding Industry Corporation.
Sun Laiyan, deputy director of the CSTIND, noted that integrating military industries with regional economic development was a significant task of the commission. The CSTIND has signed technical cooperation agreements with the provinces of Shaanxi and Hubei and the Municipalities of Beijing and Chongqing.
The Shaanxi Provincial government and the CSTIND, for example, jointly built industrial parks and production bases for aerospace, aviation and engineering projects and channeled more than 100 million yuan (about 14 million U.S. dollars) to support 40 projects with civilian and military purposes.
With military industry serving as a major engine for economic growth, Shaanxi has seen 20 of the 300 civilian products in mass production each generate more than 100 million yuan in sales last year.
The aggregate output generated by civilian products manufactured by the local defense industry has risen 11 percent annually since 2000, when it stood at from 5.6 billion yuan to 10.2 billion yuan last year.
Overall, the output of civilian-use products as a percentage of the total output of the national defense industry jumped from less than 10 percent in 1978 to 65 percent last year.
Nearly 200 civilian products each have yearly sales of more than 100 million yuan, and there are 20 products that generate at least 1 billion yuan a year.
Sources with the CSTIND said that apart from Tianjin, the commission is also in talks with the provincial governments of Sichuan and Zhejiang and Shenzhen city government for similar cooperation agreements.
A directive on technical cooperation between the national defense industry and regional economies, such as the Northeast's old industrial base, the west interior region and the central region is to be released at the end of this year, Sun has said.
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Features of PLA military training in 2007
Source: PLA Daily | Updated: 12-19-2007
It is learned on Dec. 17 from the Military Training and Arms Department of the General Staff Headquarters (GSH) of the PLA that this year the PLA and the Armed Police Force have been earnestly studying, probing into and promoting the important theories on and practice of transforming the military training, laying firm stress on purposeful and close-to-real-war training, and making vigorous efforts in stepping up the cultivation of new-type military personnel with the priority being given to the training of those joint operation commanders, which resulted in making new headways and even breakthroughs in military training.
According to the responsible person of the Military Training and Arms Department of the GSH, this year's military training of the PLA has the following outstanding characters:
The entire PLA has made in-depth studies about the characters and rules of IT-based military trainings, devoted greater efforts to study and practice the tactics and training methods for fighting major military operations with the payoff of a batch of important achievements, further strengthened trainings to cope with various security threats and fulfill diversified military tasks, steadily boosted base training, simulation training and network training to the orientation of composite application and uplifted the integrated training of the joint operation elements and the operation units of services and arms to a new height, branched out the building of training bases with complicated electromagnetic environment, developed and issued simulation training facilities for complicated electromagnetic environment and probed into training methods in complex electromagnetic environment, kept on raising the training quality and efficiency by way of arranging desperate, difficult and dangerous situations for the troops in military exercises, and energetically probed into the effective approaches allowing educational resources to be shared between military schools, military schools and troop units, and military schools and scientific research institutions so as to jointly foster joint operation commanders.
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Air station enhances multi-type aircraft support capability
Source: PLA Daily | Updated: 12-19-2007
Entrusted with the mission of providing support to several flying groups, an air station of the aviation force of the South China Sea Fleet has successfully provided support to 15 different types of aircraft. In the face of heavy support missions, this station has actively created new support modes and made good use of its existing support resources. In a few years, it has successfully realized historical transformation from providing support to a single type of aircraft only to providing support to multi-type aircraft, at the same time, its support capabilities have been greatly boosted.
In carrying out its support missions, this station has given priority to key missions, rationally adjusted the support strength and adopted the rolling support mode. Since its personnel and equipment are inadequate for its assigned missions, this station has relatively fixed the support strength of the important support units onto important tasks. As to the passing transport aircraft and the aircraft not on combat alert, fixed point support will be provided by other personnel.
In light of the needs of actual combat, this station has also raised fund to strengthen the construction of airfield flight support command center, installed airfield command automation system to raise support command efficiency, installed radar system in flight control center to improve air control and supervision means, widened the central curved path from the central parking apron to refueling pipeline to enhance the taxing safety factor of aircraft. These measures have effectively improved the support level of the station.
In order to win future wars, it is necessary to cultivate a batch of new-type support personnel. To this end, this station has drawn up a three-year program for fostering high-caliber talents. Currently, 79% of its officers and men have reached the standard of technical masters, and 36 NCOs won the "Excellent NCOs Award" handed out by either the PLA or the Navy or the South China Sea Fleet.
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China raises benchmark interest rate for 6th time this year
Source: Xinhua News | Updated: 12-20-2007
China is raising the interest rates for the sixth time this year in a fresh move to cool a red-hot economy expected to expand 11.5 percent for the full year and to battle inflation that has climbed to an 11-year high.
China would raise the one-year deposit interest rate by 27 basis points to 4.14 percent and the lending rate by 18 basis points to 7.47 percent as of Friday, the central bank said in a statement posted on its website.
The move, which aimed to "prevent the economy from overheating and the structural price rises from evolving into evident inflation", followed the "tight" monetary policy for 2008 made by the Central Economic Work Conference held earlier this month.
The key economic meeting decided to shift China's monetary policy from a "prudent" stance, which the country had followed for the last 10 years, to "tightening".
Different from the five previous such moves, the central bank lowered the interest rate for sight deposits by nine basis points, to encourage people to put more money in the bank for a fixed period, rather than having it readily available for stock or property investment.
"Lower rates for sight deposits and unequal rises in deposit and lending rates will narrow the rate gap between credits and deposits and help China check excessive credit growth," said Guo Tianyong, a professor at the Central University of Finance and Economics.
With the country still facing inflationary pressure, the central bank lifted the rates to relieve the public's expectations for inflation, a spokesman with the central bank said.
Rising food prices, especially pork, the country's meat staple, pushed China's inflation rate to a new 11-year high of 6.9 percent in November. The inflation rate for the first 11 months was 4.6 percent, compared with the government's target of three percent.
Analysts said people's expectations for further price rises also played a role in rising inflation by breaking the balance between supply and demand.
"If the move fails to ease inflationary pressure in a certain period of time, the central bank may announce more hikes in interest rates and bank reserve requirement," said Tang Min, the chief economist with the Asian Development Bank mission in China.
Also on Thursday, the U.S. Treasury Department, despite pressure from Congress, declined to designate China as a currency manipulator whose policies hurt its trading partners.
Tang Yaling, an expert with the Bank of China, said that "the interest rate hike will provide more space for the yuan's appreciation, and both the hike and the news from the U.S. will help ease the upward pressure on the Chinese currency."
"The central bank chose a good opportunity to raise the interest rates because the U.S. dollar was on the rise these days," she added.
Earlier this month, China told its commercial banks to hold more money in reserve for the 10th time this year. It was also in an effort to cool the booming economy and slow rising inflation.
The reserve requirement ratio was raised by one percentage point, the largest increase this year.
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Prudent fiscal policy pledged
Source: China Daily | Updated: 12-20-2007
The Ministry of Finance has pledged to adopt a prudent fiscal policy to help cool the economy and prevent excessive price rises.
The authorities will also make efforts to improve people's well-being by supporting such sectors as social security, health, education and housing, Xie Xuren, minister of finance, told a meeting Wednesday in Beijing.
The country will "properly" reduce the budget deficit, he said. Last year, the central government deficit was 274.9 billion yuan ($37.3 billion), or 1.37 percent of gross domestic product. It is budgeted to drop to 1.1 percent this year.
The issuance of long-term construction bonds will be cut, which will help the central government's drive to prevent the economy from overheating and rising prices from evolving into entrenched inflation - a platform hammered out at the Central Economic Work Conference held earlier this month, Xie told heads of the nation's local fiscal departments.
The government started to issue long-term construction bonds, or bonds for large-scale infrastructure projects, in the wake of the 1997-98 Asian financial crisis to sustain economic growth.
But with the economy growing briskly in recent years - and even facing the risk of overheating - the central government has gradually cut the scale of such bonds to avoid jazzing up already-fast investment growth.
As a result, the issuance of such bonds has been cut from 150 billion yuan in 2002 to 60 billion yuan last year.
Xie vowed to further use fiscal policy to stabilize rising prices.
"(We) will actively support production of agricultural products such as grain, edible oil and meat, and ensure the supply of basic daily necessities to curb excessive price rises."
Subsidies will be extended to those hit hard by rising prices timely, he added.
The consumer price index, a key gauge of inflation, rose to a decade high of 6.9 percent in November, the fourth consecutive month when it exceeded 6 percent.
Xie said more funds would be pumped into the health sector, and the rural cooperative medical insurance system, which now covers 730 million farmers in 86 percent of all counties nationwide, would be expanded.
In the first 11 months, the central and local fiscal expenditure on health amounted to 142 billion yuan, up 40.6 percent year on year, Xie said.
Fiscal revenue grew by 33.5 percent year-on-year in the first 11 months to reach 4.8 trillion yuan ($651 billion) and is expected to hit 5.1 trillion yuan?for the whole year, 31 percent more than in 2006, the finance minister said.
Expenditure in education increased by 32.7 percent during the January-November period, while social security and employment expenditure grew by 28.6 percent.
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China's state forex investment company to invest $5bn in Morgan Stanley
Source: Xinhua News | Updated: 12-19-2007
China Investment Corp. (CIC), the nation's state-owned forex investment firm, said late Wednesday that it has agreed to invest 5 billion U.S. dollars in the No. 2 U.S. investment bank Morgan Stanley.
The Chinese firm, which invested 3 billion U.S. dollars earlier this year in the U.S. private equity firm Blackstone Group, will purchase equity units that are mandatorily convertible into 9.9 percent of Morgan Stanley common shares.
The equity units carry a fixed annual interest rate of nine percent before conversion on Aug. 17, 2010.
The purchase is "a long term, passive financial investment" and does not lead to a role in management of Morgan Stanley, said a statement from CIC.
"It is a good opportunity to invest in U.S.-based financial institutions, many of which are being undervalued when the subprime mortgage crisis has had an impact on them," Li Yang, director of the Institute of Finance and Banking under the Chinese Academy of Social Sciences, told Xinhua.
Also on Wednesday, Morgan Stanley reported a larger-than-expected loss in the fourth fiscal quarter due to a 9.4-billion-U.S. dollar write down from its exposure to subprime and other mortgage-related investments.
It lost 3.61 billion U.S. dollars in the fourth quarter, compared to a profit of 2.27 billion U.S. dollars in the same period a year earlier.
"CIC believes that Morgan Stanley has potential for long-term growth, particularly in its investment banking, asset management and wealth management businesses, as well as new business development opportunities in emerging markets," said the statement.
The purchase is made in accordance with CIC's global investment strategy, which is to seek attractive long-term returns with acceptable risks, it said.
CIC will maintain a cautious investment strategy, Finance Minister Xie Xuren said last week at the China-U.S. high-level economic talks. "It will pursue long-term investment instead of short-term speculation, and will achieve a balance between security and profitability."
China Investment Corp. was set up in September this year, with an initial capital of 200 billion U.S. dollars from the country's massive foreign exchange reserves.
One-third of the capital would be used to purchase Huijin Investment Co. an investment arm of the Chinese government, and another third would be injected into state-owned banks for shareholding reforms, CIC chairman Lou Jiwei said.
The remaining 70 billion U.S. dollars was earmarked for overseas investment in a wide range of portfolios but would not seek control, he said.
Earlier this month, CIC made its second investment this year of about 100 million U.S. dollars in the initial public offering of the China Railway Group in Hong Kong.
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Chinese power grids open to foreign investment
Source: Caijing Magazine | Updated: 12-19-2007
The Chinese government will let foreign investors join construction projects and management of China's electric power network as long as the Chinese investors maintain majority stakes in the country's two grid monopolies.
National Development and Reform Commission and Ministry of Commerce released October 31 a "Catalogue for the Guidance of Foreign Investment Industries" circular, effectively lifting a ban on foreign investment by declaring China's grid industry a "restricted" but no longer "prohibited" sector for overseas involvement. The catalogue took effect December 1.
"By welcoming foreign investors on board, the government intends to tackle financing issues in the grid industry," a source familiar with drafting the circular told Caijing. "To some extent, it can help normalize the management of China's grid companies."
The state-owned monopolies that would now welcome outside investment are State Grid Corporation of China (SGCC) and China Southern Power Grid (CSPG). They own 80 percent and 20 percent of China's EHV power grid, respectively.
Each power distributor faces serious financing problems at a time of rising demand for electricity. According to the 11th Five-year Power Grid Development Plan, more grid investment is needed to satisfy the needs of China's rapid economic growth. For the 2006-'10 period, government planners have set investment targets of 850 billion yuan for SGCC and 34 billion for CSPG. But 2006 net profits were a paltry 17.8 billion yuan at SGCC and 8.6 billion yuan at CSPG-earnings that may be too slim to meet investment targets.
Moreover, 2006 debt-to-asset ratios for SGCC and CSPG were an uninspiring 60.45 percent and 61.66 percent, respectively-evels considered discouraging for prospective bank loans.
"SGCC and CSPG might face operation risk if they continue taking bank loans," said an industry expert who asked not to be named. ''
To get the cash they need, SGCC and CSPG have openly expressed interests in going to stock markets with initial public offerings. An expert from China Electricity Council told Caijing, the government plans to diversify ownership through public listings or by selling stakes to foreign investors and eventually break up these state-owned monopolies.
Electricity prices are government controlled, and the 2006 return on net assets for SGCC and CSPG were a relatively low 4.02 percent and 7.71 percent, respectively. Nevertheless, risk premiums due to rapidly growing demand for electricity and substantial power capacity might attract foreign investors.
1yuan = 13 U.S. cents
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China now Eurozone's biggest importer
Source: Economic Review | Updated: 12-20-2007
China has overtaken the UK as the largest source of imports to the eurozone, the Financial Times reported. Imports from China in the first three quarters of 2007 totaled US$178.3 billion - 20% higher than the corresponding period in 2006.
Imports from the UK for the period fell by 2% to US$176 billion. Eurozone exports to China grew by 13% in the year's first three quarters compared to the same period last year. EU leaders visiting Beijing for high-level talks in November warned that trade barriers may be erected unless China allows the value of the yuan to rise in order to reduce European countries' trade deficit with China. The eurozone includes the 13 EU member states that use the euro as their currency.
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Credit controls cool Shanghai real estate
Source: China Daily | Updated: 12-20-2007
The once red-hot housing market of Shanghai is losing its luster, as government credit controls begin to bite.
Average daily property sales since mid-November have dropped 50 percent from the first half of this year to below 600 apartments, according to the China Real Estate Index System. Only 376 apartments changed hands last Sunday, the first weekend after the central bank clarified the definition of "second" properties that are subject to higher mortgage deposits.
More than 55 percent of homebuyers have delayed purchase plans, according to a recent survey by property information firm Soufun.com.
Meanwhile, real estate developers are facing increasing financing pressure as commercial banks tighten credit. That cash flow problem is being exacerbated by the slump in housing sales because of government measures to clamp down on excessive speculation.
China's largest real estate developer Vanke Co Ltd was the first to boost sales by cutting its property prices by 15 to 30 percent in major cities like Shanghai, Shenzhen and Guangzhou.
In mid-November, Vanke offered a 2.7 percent discount on a property for buyers able to pay a 50 percent down payment and sign a sales contract within 10 days.
Wang Shi, chairman of Vanke Co Ltd, said at a conference last week that the property market had reached a turning point.
Vanke's monthly sales income fell 18.02 percent from October to 4.23 billion yuan ($573.17 million) in November, prompting the company to reduce prices in some cities, analysts said. The company also announced a 25.4 percent drop in sales in October from the previous month.
"Housing sales turnover and prices have reached their peak and we'll see a drastic slowdown of corporate earnings for real estate developers," said Wang Shujuan, an analyst at Orient Securities.
Wang said most investment properties were likely to be sold or rented out in the next year, which would increase supply and put pressure on developers.
Property developers are also showing less interest in buying land. A recent sale of 32 parcels of land in Shanghai received just four tender applications. A month ago there were 10 developers competing for one parcel of land.
"Many small and medium-sized companies are now faced with financing pressure, which will prompt them to cut prices or introduce overseas investment to survive," said Luo Xiaohua, general manager of Shanghai Jing Rui Properties (Group) Co Ltd.
Some market watchers predict the housing market correction could last up to 15 months before it picks up again.
Shanghai will invest over 2 billion yuan in a public housing fund to buy 8,000 low-rent apartments by the end of the year. The city plans to have budget housing for 100,000 families by 2010, up from 30,000 now.
The nation has poured billions of yuan into low-cost housing, urging local governments to reserve at least 70 percent of residential land for low-rent units or smaller, cheaper commercial homes.
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PBOC survey: China's employer confidence index slips amid overheating concerns
Source: Xinhua News | Updated: 12-20-2007
China's employer confidence index continued to tumble in the fourth quarter as more businesses worried about economic overheating, a survey released by the People's Bank of China (PBOC) on Thursday said.
The survey, conducted in the fourth quarter, covered 5,497 companies nationwide, the central bank stated.
The employer confidence index dropped 0.1 percentage points quarter-to-quarter to 76.9 percent. This followed a sharp decline of 6.4 percentage points in the third quarter.
Up to 21.6 percent of the employers surveyed believed the Chinese economy was on the brink of overheating. The reading, 0.5 percentage points higher from last quarter, was the highest in 14 years.
The survey also said 39.8 percent of the companies believed the price of production materials would continue to rise. The figure, 1.9 percentage points higher from last quarter, was the highest since 1997.
Nineteen percent said their product sales prices would rise. The gap showed more companies were cautious in transferring production costs to their customers.
The index on domestic orders rose by 1.4 percentage points quarter-to-quarter to 13 percent this quarter as retail sales continued to rise because of increasing personal income.
The index on overseas orders, however, fell by 0.8 percentage points quarter-to-quarter to 6.4 percent after retreating by 2.5 percentage points in the third quarter.
China's index of bankers' confidence rose to 24.1 percent in the fourth quarter from 21 percent last quarter, according to a survey of 2,850 bankers conducted by the central bank in the fourth quarter.
The survey stated that 81.3 percent of the bankers said the economy had shown signs of overheating. Nearly 70 percent thought the economy would continue to be on the verge of overheating in the first quarter of 2008.
China's gross domestic product expanded by 11.5 percent in the first three quarters of the year, according to the National Bureau of Statistics.
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Crude oil output to reach 186m tons in 2007
Source: Xinhua News | Updated: 12-20-2007
China Petroleum and Chemical Industry Association (CPCIA) forecast on Wednesday that the country's crude oil output would reach 186 million tons in 2007, up 1.5 percent year-on-year.
Meng Quansheng, vice chairman of the CPCIA, made the remarks at an industry forum in Beijing.
He said the figure would reach 189 million tons in 2008, and 47 percent of the total oil consumption would rely on imports.
The latest statistics showed that in the first 11 months, China's crude oil output stood at 171 million tons, up 1.6 percent over the same period last year. Imported oil stood at 147 million tons, up 14.8 percent.
The CPCIA also forecasted that natural gas output would rise 14.4 percent to reach 58.55 billion cubic meters in 2007, and 76 billion cubic meters the following year.
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Southwest China hit by fuel crunch
Source: China Daily | Updated: 12-19-2007
Drivers waited in lines up to a half-mile long to buy gasoline in China's mountainous southwest Tuesday amid rationing aimed at easing a fuel crunch in key export regions elsewhere.
Supplies began to run out Sunday in Yunnan Province, triggering rationing, filling station employees and news reports said.
The crunch follows a diesel shortage in China's?southeast in October and November and the government?started to?order suppliers to take emergency measures.
Fuel ran short in Yunnan after a pipeline used to deliver gasoline was switched to carrying diesel in response to the shortage, reports said. The pipeline is owned by China's biggest refiner, China Petroleum & Chemical Corp (Sinopec).
"Now we do not have enough fuel to sell to customers," said an employee contacted by phone at a Sinopec filling station in Kunming, the?capital of Yunnan?Province.
At another Sinopec station in Kunming, an employee said the line of waiting cars stretched for a half-mile.
Trucks and buses were unaffected because Yunnan had adequate supplies of diesel, the employees said.
Supplies were expected to be restored in two to three days, said Xi Limei, an official in charge of commodities distribution for Kunming, the capital of Yunnan Province.
There were no reports of similar shortages in other regions and no indication of an immediate economic impact.
China's two oil giants?Sinopec and China National Petroleum Corp (CNPC) have imported several hundred thousand barrels of diesel to ease the shortage in the southeast. They also have promised to reconfigure refineries to produce more diesel.
The diesel shortages in South China's Guangdong Province eased at the end of November, said filling station employees.
"We have no lines and area offering unlimited supplies to customers. There are enough supplies of both gasoline and diesel," said an employee of the Liwang Gas Station in Guangzhou, the country's southern business capital. He would give only his surname, Wang.
Sinopec and CNPC have asked for government approval to increase gasoline supplies to Yunnan next month to meet rising demand, the local newspaper Kunming Daily reported.
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Yangtze River driest in 50 years
Source: CCTV | Updated: 12-19-2007
The Yangtze River is recording its lowest level in 50 years. The river normally has less water between November and April but, this year it continues to drop, falling below the five year average.
Since October, the level of the Yangtze section in East China's Anhui Province, has dropped from 9 meters to 1.3 meters and continues to fall by 3 centimeters a day. This is causing serious problems for shipping. Three vessels have been stranded.
Authorities have started 24-hour inspections, patrolling 3 times a day, and are ensuring navigation markers are reset on time. They're also paying close attention to changes in the riverbed to keep ships from running aground and will clear away sediment if it becomes necessary.
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Xiamen to relocate chemical facility
Source: China Daily | Updated: 12-20-2007
The recent public debate over the planned development of a chemical plant in Xiamen, Fujian Province, appears to have reached a conclusion.
According to media reports, the local government has agreed to move the plant to another city because of environmental and health concerns.
At a meeting on Saturday, provincial leaders agreed to move the 10.8-billion-yuan ($1.46 billion) plant to the Gulei Peninsula, near the city of Zhangzhou, Hong Kong's Da Kung Po newspaper said.
The Xiamen government will compensate the Xianglu Chemical Fiber Corporation, the principal investor, Singapore's Lianhe Zaobao newspaper said.
The relocation still needs to be approved by the National Development and Reform Commission, it said.
"Although this is a large project - and a good one too - the fact that so many people are against it requires us to carefully consider the matter from a scientific, democratic and public viewpoint," provincial Party chief Lu Zhangong was quoted as saying.
Zhu Qing, director of the Fujian government's information office, said the issue "is still under discussion and relevant information will be released through official sources".
However, he did not deny the plant's possible relocation, the Shanghai Daily reported.
At a two-day hearing held last Friday and Saturday, just 15 of the 121 representatives of the public supported construction of the plant in Xiamen's Haicang district, 16 km from the city center.
The representatives were invited to attend the meeting following the release of an environmental assessment report on the project by the Chinese Research Academy of Environmental Sciences.
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Portal to offer ozone alerts
Source: China Daily | Updated: 12-19-2007
An online ozone forecasting system was launched here on Monday to help keep residents abreast of chemical pollutants in the air.
The Shanghai meteorological bureau's official website at www.soweather.com is said to be one of the first in the country to provide residents with daily forecasts of ozone levels.
Geng Fuhai, an official with the bureau, said: "The international community has been promoting the idea of chemical weather forecasts since 2000, and ozone forecasts are an important part of that."
In the high layers of the atmosphere, ozone acts as a protective screen that blocks high levels of UV radiation from the sun. At ground level, it can be harmful to plants, animals and humans, he said.
Experts have said that modern lifestyles have contributed to the increase in the amount of pollutants such as CFCs (chlorofluorocarbons) and VOCs (volatile organic compounds) being pumped into the air, which in turn have been increasingly linked to weather changes.
Geng said the forecasting service will help the public to prevent and reduce the effects of ozone on their health.
"Ozone damage initially occurs without any noticeable signs. People who live in areas where ozone levels are frequently high may be susceptible to lung damage," he said.
"The best way to protect people's health is to find out when ozone levels are high and take precautions by reducing exposure to it," he said.
The weather department is also working on forecasting systems for other chemical substances in the air.
Ding Ruoyang, who also works at the bureau, told China Daily: "Studies on aerosols and acid rain are also on our agenda, as they are both closely related to daily life.
"We also want to broaden the alerts to include information on the conditions of vegetation and plants, which will help people with allergies to avoid pollen, for example," he said.
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1.25m hit by drought in Guangxi, Guangdong
Source: China Daily | Updated: 12-18-2007
Despite a recent cold snap, no rain has fallen in this southern city since November 10.
It is one of dozens of cities in Guangdong Province and the Guangxi Zhuang Autonomous Region that have been battling drought since September.
According to official figures, more than 1 million residents in Guangxi and nearly 250,000 in Guangdong are currently facing drinking water shortages in the worst drought to hit the region for more than 50 years.
Between November 5 and December 10, Guangxi recorded just 0.5 mm of rainfall, the lowest since 1951, the local weather center said.
And as of December 8, 83 out of 89 cities and counties in Guangxi had reported drought, with the situation in more than half of them described as "serious".
One of the country's major sugar cane producers, Guangxi's crop this year is expected to be down by about 2.7 million tons as a result of more than 10 million mu of cropland, 75 percent of the total, being affected by drought, local sugar manufacturers said at a recent meeting.
The government of Guangxi has said it will spend 2.29 billion yuan ($310 million) on irrigation projects this winter and next spring to provide water to people throughout the region, the People's Daily reported.
As of last Thursday in Guangdong, 249,000 people and 73,300 hectares of cropland were facing water shortages, according to the provincial hydraulics bureau.
It said 133 reservoirs in the province had dried up because of the drought.
Official figures show the province received 1,453 mm of rain between January and early December, down almost 20 percent on the average.
The water level of the Beijiang River at Qingyuan, in the north of Guangdong, fell to just 3.79 m on December 5, the lowest this century.
The low level led to more than 100 ships being delayed until dredgers were used to remove 90,000 cu m of silt, the bureau said.
On Friday, the State Council released a circular calling on government departments to strengthen the management of drinking water and supplies for industry and agriculture, and build resources to provide better protection against drought.
It also noted the severe drought in Hunan and Jiangxi provinces which neighbors Guangdong. Many reservoirs and rivers have dried up as there has been little rain since September.
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Shanghai aims to add energy saving homes
Source: China Radio International | Updated: 12-20-2007
Eastern China's municipality of Shanghai plans to build 180 million square meters of energy efficient residential buildings and renovate 10 million square meters of existing homes to meet energy conservation standards.
The design and construction of residential and public buildings in Shanghai will all observe national standards on energy conservation by 2010, reported the Shanghai Securities News.
The plan also includes 50 million square meters of newly added public buildings and 20 million square meters of renovated ones.
Shanghai's existing buildings, with a combined floor space of 500 million square meters, account for about 20 percent of the city's energy consumption, the report said.
The energy consumed per unit of construction area in China is about three times the amount in developed countries, the report quoted industrial insiders as estimating.
China's Ministry of Construction has required that more than 30 percent of the country's newly constructed buildings must be environmentally friendly and energy efficient by 2010.
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Hu stresses full implementation of free religious policy
Source: Xinhua News | Updated: 12-19-2007
Chinese President Hu Jintao on Wednesday reiterated a policy of free religious belief while stressing law-abiding management on religious affairs and support to self-governance of religious groups.
Hu, also the general secretary of the Communist Party of China (CPC) Central Committee, made the statement at a meeting of the members of the Political Bureau of the 17th CPC Central Committee in their study on religious issues at home and abroad.
"We shall fully carry out the Party's policy of free religious belief and manage the relevant affairs in line with the law," he said.
The Party and government shall encourage believers of all religions to keep their patriotic tradition and contribute to the development of Chinese society and unification of the motherland, he said.
China's management of religion would be based on human understanding, he said, adding mutual respect was a must.
"The Party and government shall reach out to religious believers in difficulties and help them through their problems," he said.
Hu also stressed the training and promotion of religious professionals, saying that the CPC would help and support religious groups to improve self governance, voice the opinions of its followers and protect their legal rights and interests.
Since last year a number of training programs have brought together religious leaders, theology teachers and officials with religion-related government departments. They took courses on religious knowledge such as history of world religions and ethics, as well as practical courses in management theories, psychology and law.
The CPC is atheistic but allows freedom of religious beliefs. China is home to 100 million religious faithful, largely Buddhists, Taoists, Christians, Catholics and Islamites.
At the 17th CPC National Congress ending in late October, the Party for the first time in its history has mentioned the word "religion" in an amendment to its Constitution.
To incorporate into its Constitution the principles and policies the Party has formulated for guiding efforts to strengthen the work related to ethnic and religious affairs, among others, is conducive to their full implementation and getting better results in the Party's work in this area, said a resolution on the amendment to the Constitution.
The CPC recognized that religions are a constant for a long time in the Chinese socialist society, Hu said at Wednesday's meeting.
To properly understand and manage the religious affairs was vital to the work of the Party, the peace and stability of Chinese society and the process to build a moderately prosperous society of all respects, he said.
"We shall fully understand the new problems and challenges to manage religious affairs so that we can do it right," he said.
As the host country of the 2008 Summer Olympic Games, China has promised to offer religious services for foreigners arriving for the Games. It is working on religious facilities at the Olympic venues with the help of the International Olympic Committee and referring to the practices at previous Games.
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China releases first national plan for curbing trafficking of women and children
Source: Xinhua News | Updated: 12-20-2007
China on Thursday released an anti-trafficking plan for curbing human trade in women and children for the next five years.
The plan, to be implemented from 2008 to 2012, set a general objective to minimize crimes of trading in women and children and to minimize the physical and psychological pain they suffered.
According to the plan, a ministerial-level joint meeting headed by the Ministry of Public Security (MPS) would be established and local regions, especially where trafficking cases frequently occur, should set up relevant organs.
The meeting would involve 28 government ministries, including the ministries for Foreign Affairs, Education, Finance, Health and State Industry and Commerce Administration, which would make a concerted effort to halt trafficking crimes, the plan said.
The full text was on the central governmental website www.gov.cn. It elaborated on the main measures and organizational arrangements of the meeting.
The fund supporting the joint meeting and local anti-trafficking activities would mainly come from central and local governments and individual contributions. In addition, international aid would be actively pursued, the plan said.
At bus and train stations, airports, ferry docks and other locations where trafficking of women and children mostly occurred, the National Civil Aviation Administration, Railway and Transportation ministries would pay more intensified attention, it said.
To curb trade in women and children, the Public Security Ministry, Labor Ministry and State Industry and Commerce Administration would more severely crack down on illegal trading in the labor market and punish or clamp down on illegal labor agents.
The plan also promised that governments at all levels would improve salvation measures to women and children who suffered from kidnapping and trafficking by providing more training, physical and mental therapy and rehabilitation.
The Health Ministry and its affiliating organs should organize certain medical institutions to provide medical care for suffering women and children, it said.
Du Hangwei, director of the investigation bureau with the MPS, said that as the first national anti-trafficking plan, it concerned all aspects of the job. This included preventive education, crackdown policies, victims aid, repatriation and rehabilitation and international and regional cooperation.
The United Nations International Children's Emergency Fund estimated that roughly 1 million children were bought and sold every year, mostly for sexual exploitation and forced labor.
The MPS said that it had uncovered 2,500 human trafficking-related criminal cases in 2006 and saved victims from suffering.
As part of its anti-trafficking effort, the ministry had hosted a vice ministerial-level Mekong regional meeting. The meeting involved Cambodia, Myanmar, China, Thailand, Laos and Vietnam, countries where human trafficking had become more commonplace in recent years.
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More media services promised
Source: China Daily | Updated: 12-19-2007
The government will provide comprehensive service to the foreign media next year with timely dissemination of more authoritative information, Minister of the State Council Information Office Cai Wu pledged Tuesday.
He noted the improved service provided to foreign journalists during the 17th National Congress of the Communist Party of China in October was much appreciated.
"They (the foreign media) welcomed the unprecedented openness of the congress and the service provided during the period," Cai told China Daily.
"This is a good sign, and we will continue to be more open in the coming year, and provide satisfactory service for all media."
Addressing a New Year reception for the media, Cai said the country is braced for some of the most exciting moments in its modern history.
Next year will see an array of important events, including the Beijing Olympic Games and the 30th anniversary of China's reform and opening up.
An estimated 30,000 foreign journalists are expected next summer in Beijing to cover the Games.
Cai promised that China would "comprehensively" implement the State Council order granting foreign journalists more freedom to report in China in the run-up to, and during, the Games.
"Please set your minds at rest we Chinese always keep our promise," Cai told foreign journalists attending the reception, which drew more than 300 representatives from ministries, embassies and news organizations.
"We will further improve our news briefing system and improve the quality of the news service," said Cai.
"At the same time, we sincerely hope that through efforts by friends in the media circles we present to people around the world a true China that adheres to reform and opening up, promotes harmonious development and commits itself to building a moderately prosperous society," he said.
Over the past year, the office held more than 70 press conferences and issued several white papers on food and product quality as well as the country's political system.
Seiichiro Yamaguchi, Beijing bureau chief of Fuji Television Network, said China has been opening more fields to foreign reporters with more ministries holding press conferences this year.
"I hope the mechanism can continue, and improve," he said.
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New rules strengthen work safety
Source: China Daily | Updated: 12-20-2007
The Communist Party of China's (CPC) disciplinary watchdog will punish more severely those who fail to maintain safety in production to prevent accidents in workplaces.
Officials will be demoted, sacked or even expelled from the CPC if they take advantage of their posts to influence purchase, public biddings or accident probes, according to the new 10-point rules released by the CPC Central Commission for Discipline Inspection (CCDI) Thursday.
Those who try to save people responsible for the accidents, too, face severe punishment.
This is the first time the CCDI has specified its disciplinary punishments. It reflects the CPC's resolve to fight corruption, CCDI deputy chief and spokesman Gan Yisheng said.
People also face punishment for:
Granting approval to companies that fail to meet work safety standards, certifying unqualified units and/or people, and lifting the ban on firms breaking work safety regulations;
Failing to take effective steps to clear hidden dangers, forcing employees to work overtime, taking risks at work, or allowing unqualified people to work;
Providing dangerous materials including poisons and explosives to unregistered or unqualified companies.
"Dereliction of duty on the part of some government officials and official-businessmen nexus are behind many of the accidents," Gan told a news briefing.
The new rules, along with the legal and administrative penalties, will make it "feasible" to haul up anyone suspected of being responsible for an accident.
"But that does not mean the CPC disciplinary penalties will be a substitute for legal punishment. Anyone who violates the law has to face the law," Gan said.
State Administration of Work Safety (SAWS) Director Li Yizhong said nepotism at the local level has hindered bringing "people responsible for workplace accidents to justice".
For instance, the 11 people responsible for the November 2005 coal mine accident in Qitaihe, Heilongjiang Province, in which 171 people were killed, have not yet been punished.
The Legal Evening News has quoted the victims' lawyer, Na Guohai, as saying: "Protectionism at the local level is responsible for the delay in the case."
The government has been trying to ensure safety at workplaces and prevent accidents. As a result, the number of accident deaths dropped 13.8 percent in first 11 months of the year.
But fatal accidents still take place. Three coal mine accidents in Shanxi Province alone have claimed 159 lives this year.
Major accidents in other sectors such as fireworks plants, and metal and non-metal mines and construction sites have been rising, too, since November.
Gan urged disciplinary departments at all levels to implement the new rules without being lenient with corrupt officials.
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China to keep ethics records on medical staff
Source: Xinhua News | Updated: 12-20-2007
China will keep ethics records on 5.27 million medical staff to curb malpractice, according to a notice released Thursday.
The ethics record would be used to evaluate medical staff performance and was linked to promotion and salaries, the notice released by Chinese Ministry of Health said.
No timetable was given on when the records would be implemented.
The record would be based on self evaluation, department evaluation and hospital evaluation.
The evaluations were required to be renewed annually.
The record would have four grades: excellent, good, ordinary and bad, the notice said.
Medical staff would have "bad" records if they were found asking patients for "red envelopes" or "gifts"; accepting bribes or commissions from pharmacies or medical equipment manufacturers; overcharging patients and fabricating medical documents.
The records would be made public in the hospital and those with bad records would also be punished according to laws and regulations, the notice said.
It also required medical staff to respect patient rights, treat patients without discrimination and improve medical services for patients so as to build a harmonious relation between medical staff and patients.
Expensive medical care has become one of the biggest burdens for common Chinese and conflicts between patients and hospitals frequently occur. The country has tightened its fight against corruption in the medical sector following a greater number of patient complaints in recent years.
Last year, the Ministry of Health fired the president of Harbin No. 2 Medical University Hospital in Northeast China's Heilongjiang Province after an over-billing scandal that saw a dying man's family charged more than one million yuan (135,703 U.S. dollars) for treatment he didn't need.
In 2006, government figures revealed authorities investigated 2,755 commercial bribery cases in the health sector, involving more than 100 million yuan. The cases investigated involved the purchase and distribution of drugs and medical equipment and medical services.
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China may raise income-tax threshold
Source: China Daily | Updated: 12-19-2007
A draft revision to the personal income tax law will be submitted to the top legislature next week amid growing calls for a rise in the threshold, media report said on Wednesday.
Curently, only those who earn more than 1,600 yuan a month have to pay personal income tax in the country. Regulators raised the threshold to the current level in January 1, 2006 from the 13-year-old level of 800 yuan as people's earnings jumped thanks to a booming economy.
In 2006, urban residents' annual per capita disposal income stood at 1,1759 yuan, compared with 739.1 yuan in 1985.
No details have been unveiled about the draft, however, the public have shown great interest in the possibility of a threshold hike.
Experts said a rise is possible in the near future, since the cost of living has jumped, according to the China Business Daily. Inflation hit a 11-year high of 6.9 percent in November on rising food prices.
The threshold should be raised to 2,000 to 2,500 yuan, an expert was quoted as saying by the newspaper.
A recent survey conducted by China Youth Daily shows that 97 percent of respondents thought existing threshold was too low and wanted it to be increased.
It is not, however, involved in the investigation of individual cases.
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Quarantine forms for travelers scrapped
Source: China Daily | Updated: 12-20-2007
Foreign or Chinese passengers entering the country do not need to fill in quarantine declaration forms from next month, it was announced Wednesday.
However, they are required to make an oral declaration to border officers if they have fever, cough, infectious or mental diseases; or if they are carrying microorganisms, human tissues, blood or plasma products, animals, plants or their products.
The move aims to simplify immigration procedures and improve efficiency, according to the announcement jointly issued by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and the General Administration of Civil Aviation.
Current regulations require inbound passengers to fill - in addition to entry forms - quarantine declaration forms to help prevent diseases from spreading. Outbound passengers have to fill in a Customs declaration form apart from the exit form.
The complicated procedures have led to growing public complaints as passenger flows increase rapidly.
Figures from the Ministry of Public Security show that a cumulative 318 million people crossed the border last year, of whom 44 million were foreigners. In the first eight months of this year, 224 million people crossed the border, up 8 percent year-on-year.
Beijing Olympic Games organizers estimate that a cumulative 70 million foreigners will cross the border next year.
"The rapid increase in passenger traffic poses a challenge. So we're making great efforts to simplify immigration procedures," Xia Wenjun, an information officer with the AQSIQ, said.
The Public Security Ministry in October cancelled exit/entry registration for foreign or Chinese passengers who transit at a mainland airport for less than 24 hours on their way to another country. In addition, Chinese passengers no longer have to fill in exit forms when they leave the country.
However, in response to some worries that the simplified quarantine procedures may facilitate the spread of diseases, Xia said border officers have been told to strengthen supervision and make better use of technologies to prevent diseases from entering the country.
There will be an increase in the number of quarantine officers posted to conduct visual examination, more detectors will be used to test passengers' body temperature, and random X-ray checks on baggage will be tightened.
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HK's jobless rate falls to lowest since '98
Source: China Daily | Updated: 12-20-2007
Hong Kong's unemployment rate dropped to a nine-and-a-half-year low of 3.6 percent in the September-November period, thanks to strong economic growth and robust domestic consumption.
The labor market was buoyant in the three months, with total employment rising by 13,400 to an all-time high of 3.51 million. The labor force dipped by 2,500, to 3.64 million, the Census & Statistics Department said.
The number of unemployed people fell by 15,900 to 127,700, the first time it's dipped below 130,000 since March-May 1998. The number of underemployed people fell by 2,000 to 80,200.
The Secretary for Labor and Welfare, Matthew Cheung Kin-chung, said the figures are encouraging.
He added that the government would keep up its efforts to help those who have difficulty entering the labor market, particularly those from remote districts like Tin Shui Wai and Tung Chung.
The jobless rate drop reflects a buoyant domestic economy, boosted by strong consumer spending and a recent boom in housing construction and property development, said Peng Chen, an economist with JPMorgan.
"Overall, Hong Kong's labor market has seen steady improvement since early 2004," he said.
In the short term, a further drop in the unemployment rate depends on the pace of job creation over the Christmas and New Year period, a government spokesperson said in a statement.
But long-term, the job market hinges on what happens in the US, economists said.
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Macao to increase administrative transparency
Source: Xinhua News | Updated: 12-20-2007
Edmund Ho Hau Wah, chief executive of the Macao Special Administrative Region (MSAR), pledged here on Thursday to enhance administrative transparency and to encourage public participation in administration.
Ho made the remarks while addressing the cocktail reception marking the eighth anniversary of the establishment of the MSAR.
The chief executive said Macao has been progressing in a sustainable developing cause with the support from the central government and all local residents since it returned to the motherland in 1999.
All walks of social life in Macao have been participating "actively" in the public affairs and their participation has helped boost the promotion of the governmental administration, said the official.
He said the government is to fulfill its pledge to improve the communication between the administration and the public, in a bid to increase the public confidence in the government.
The MSAR government will spare no effort to build a clean and fair society with the support from the central government and all local residents, Ho said.
Officials of the MSAR government and the Macao-based offices of the central government as well as hundreds of people from all walks of the social life attended the cocktail reception.
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U.S. girl saved by Chinese donor
Source: CCTV | Updated: 12-21-2007
An adopted American girl who was dying from bone marrow failure has survived a successful transplant thanks to her Chinese donor. She has come to China, with her family, to meet her donor at a ceremony held in Beijing.
Who would have thought that such a lovely girl had just survived such a deadly disease?
A big hug is the only way to express feelings at the moment, as Kailee Wells is embraced by her donor Dr. Wang Lin.
Kailee Wells said, "Xie Xie Ni, Dr. Wang Lin for giving a part of your life to me."
Dr. Wang cannot control his emotions after seeing 10-year-old Kailee's miraculous recovery.
Dr. Wang Lin said, "To see this beautiful and spirited little girl standing before me today, I feel so relieved, so happy."
Born in the central province of Hunan, Kailee was found abandoned in Changde. She spent a year in an orphanage before being adopted by the Wells family in New Mexico.
At 5, her bone marrow stopped producing red and white blood cells. But her family never gave up hope of finding a perfect match, and after two unsuccessful transplants, Kailee finally had a third, which was successful.
Kailee's mother Linda Wellls said, "Well last Christmas, we were all very worried about Kailee, and we were not sure at that time whether she would be here this year with us, and it is unbelievable really, to think back then and now - and here we are in China, in Beijing with this wonderful celebration and meeting Dr. Wang Lin. It's a true blessing."
China's bone marrow donor registry has grown to more than 700,000, thanks to increased awareness of the procedure by Chinese citizens.
Hong Junling, director of Red Cross Society, China, said, "In the past, if a patient became sick, we had to turn to donor programs overseas or in Taiwan to apply. Nowadays, for the most part, our patients know that if they become sick they can first try the China Red Cross database."
The Wells family will stay in China until next week, during which they will help recruit more bone marrow donors.
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Railway construction booming in western region
Source: Xinhua News | Updated: 12-19-2007
A year ago, with the Qinghai-Tibet Railway put into operation, a railway construction boom occurred in the far-flung western region. For many years, inconvenient transportation had hampered the development of the western region. But now, things have changed.
More and more railway construction projects have taken place in this sparsely-populated area.
As a province that has the largest territorial area, Xinjiang Uygur Autonomous region is witnessing a railway construction fever never before known. During this year, five new railway lines have started to be built in Xinjiang. Local government hopes these projects can boost the development of local economy.
The railway construction boom is unprecedented in Xinjiang's history in terms of the number of lines being built, the total length of construction and the total areas these lines cover, said Wang Lequan, Party Secretary of Xinjiang Uygur Autonomous Region.
In the following year, more railway lines will be built in Xinjiang and many of them will be built in the remote southern part of the region. In the year to come, three railway lines, namely the railway line between Kashgar and Hotan, between Korla and Aksu, and between Hami and Lop Nur, and electrified railway from Jiayuguan to Alashan, will shape up in Xinjiang, said Ismail Tiliwaldi, governor of Xinjiang regional government.
Xinjiang boasts rich energy resources, especially coal and oil. Some observers say that with the railway construction boom, the abundant energy resources in Xinjiang can be transported to other regions a lot easier than before and this will make Xinjiang a real energy resource transportation hub.
Currently, there is only one railway line that links Xinjiang to the Central Asia region. The railway reached Kazakhstan via Alashan port. In several years to come, two more railway lines might be built in Xinjiang to bring it closer to the Central Asia region.
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Woman arrested for dealing in used medical devices
Source: China Radio International | Updated: 12-20-2007
A female migrant in south-west China's Chongqing City has been arrested for illegally buying waste and untreated medical devices from hospitals and then selling it on as processed raw materials to local plastic factories to make cups and shoes.
Chongqing Evening News reported that since August the woman surnamed Zhang purchased 33.9 tonnes of used infusion sets, syringe needles and transfusion sets before she was found out by local authorities on September 19.
A local solid waste management authority discovered blood-tainted medical devices stored in plastic bags at Zhang's rented abode. The devices, containing large amounts of pathogens, viruses and radioactive material, are highly contagious and could have produced new types of deadly viruses, the report said.
A local environmental protection department called in a specialized disposal unit to take care of the dangerous waste, which was incinerated that very afternoon.
Zhang is now under arrest for illegally storing dangerous materials and may be sentenced from three to ten years in prison.
The report revealed that the case involves a whole chain of accomplices who are mad for ill-gotten financial gains. First, some hospitals want to sell used devices directly to garbage collectors as they can save on a 3,000 yuan disposal fee and earn 1,500 yuan per tonne of waste sold. The garbage collectors can make 500 yuan per tonne by collecting the waste devices from the hospitals and distributing it at various locations.
Next is someone like Zhang who buys the tainted devices at 2,100 yuan per tonne, has them processed into plastic granules and then sells the materials on to plastic factories at 8,000 to 10,000 yuan per tonne, making a profit of over 400 percent.
The investigation found that around 37 factories in the area have used Zhang's cheap raw materials to make cups and shoes.
The report says six local hospitals have been fined in light of Zhang's arrest.
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Survey shows parents know less sex knowledge than their children
Source: China Radio International | Updated: 12-20-2007
Parents have less knowledge about sex than their adolescent children, according to a survey conducted by the educational authority of Beijing's Shijingshan District.
The results of the survey were revealed at a population development forum held by the Beijing Shijingshan District government on Wednesday, the Beijing Morning Post reported.
The survey covered 5,000 junior high students, 3,000 senior high students and 6,800 parents and took three months to complete. The survey asked adolescent students questions about their physical and psychological knowledge, the source of their sex knowledge, their sex ethics and communications with the opposite sex.
The results of the survey are appalling: parents only know about 30 percent of the required knowledge, while their children knowing far more knowledge than them.
The survey also showed that most students got their sex knowledge through their classmates and teachers, instead of their own parents, as over 60 percent of students said they never talked to their parents about sex topics.
Most of the students said the sex knowledge taught to them by their school was not enough and half of the parents confessed that they didn't know how to teach their children about sex issues.
Zhang Yaojun, a professor with the Population and Development Research Center of Renmin University, said the survey exposed problems that are common in Beijing.
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China's TV audience surpasses 1.2 billion
Source: Xinhua News | Updated: 12-19-2007
China's television audience reached 1.205 billion in 2007, 90 million more than that of 2002 and twice that of 1987, a new survey released on Wednesday revealed.
About 99.89 percent of Chinese households owned televisions, according to the survey initiated by the China Central Television Station (CCTV) and conducted by the National Bureau of Statistics.
The figures were for viewers four years of age and older.
The survey said more cable TV and satellite channels had been introduced to common families. Each household now had access to an average of 32.4 channels, twice that of 2002.
In addition, television had become the most popular medium among common Chinese, it said.
The survey covered 31 provinces, autonomous regions and municipalities excluding the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan.
Altogether, 11,822 people above 13 were polled. It also polled 2,005 children between the ages of four and 12.
The survey, introduced in 1987, has been conducted every five years. It was designed to learn about the demand of TV audiences and the development of programming so as to improve content and better satisfy audience demand.
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Mayor deposed following deadly colliery blast
Source: Xinhua News | Updated: 12-19-2007
Li Tiantai, the mayor of Linfen in north China's Shanxi Province, has been removed from his post as the city's deputy Party chief after being found responsible for a colliery accident that killed 105.
Li, who was also expelled from the city's standing committee of Communist Party of China (CPC), breached his duty of supervising the mine's work safety, the Shanxi provincial CPC committee said in a notice on Wednesday.
He will be replaced by Xia Zhengui, former mayor of Jincheng City, the notice said.
The provincial CPC committee also suggested to the People's Congress of Linfen, the city's legislature, to remove Li from the mayoral post.
Following the deadly explosion on December 5 at Xinyao Coal Mine, Hongtong County, Linfen City, colliery managers were found to have delayed reporting the accident to local authorities.
The incident was believed to be the nation's second deadliest mining accident this year. In August, 181 miners died when heavy rain flooded two mines in eastern Shandong Province.
Li issued a public apology about one week after the explosion, saying "the tragedy, which made it hard for him to sleep, had revealed security loopholes in the city's coal mining industry".
Police detained 36 people allegedly linked to the accident, including mine owner Wang Donghai. Shanxi Province also ordered all illegal coal mines to close in response to the fatal mine explosion.
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Drive to 'civilize' Beijingers progresses
Source: China Daily | Updated: 12-20-2007
Beijing's officials are upping the ante on citywide campaigns to curb residents' bad habits ahead of next year's Summer Olympics.
Littering, cutting in line, foul language and spitting in public are being targeted.
Zheng Mojie, deputy director of Beijing's capital ethics development office, the official etiquette agency, said: "Hosting the Olympics is not only about building grand stadiums.
"As tens of thousands of foreign visitors are expected to flood into the country next summer, both its positive and negative sides will be amplified. So we must change these bad local habits," she said.
Millions of brochures that describe "proper" conduct have been sent out to the public, while training courses are being offered to all civil servants and those working in the service sector, including cab drivers, shopping assistants and bus conductors, she said.
The 11th of each month has already been designated "Lining Up Day", she said. The date symbolizes two orderly lines and encourages residents waiting for public transportation to wait in line politely.
Those caught spitting in public face a fine of up to 50 yuan ($6.80), while spectators behaving badly at sports events risk being taken to task by the authorities.
"We are happy at the progress that is being made, our efforts are beginning to pay off," Zheng told Xinhua.
The campaign to rid Beijingers' of their bad habits followed a year-long study by a team from the Renmin University of China. Conducted between November 2005 and November 2006, the poll covered 10,000 local residents and 1,000 foreigners who had lived in Beijing for more than two years.
Researchers also gathered information from 230,000 people at 320 public venues and in 180,000 private cars.
The survey showed that the occurrence of littering in public had dropped from 9.1 percent in 2005, to 5.3 percent last year, while the incidence of cutting in line had fallen from 9 percent to 6 percent.
According to the team's "civic index", which takes into account such things as complying with rules in public places, public order, attitudes towards strangers, behavior while watching sports events and willingness to contribute to the Olympic Games, Beijingers saw their score rise from 65.21 in 2005, to 69.06 last year.
"We expect the index to have risen again when the 2007 report is released," Zheng said.
However, the index score still falls short of the standard required for the 2008 Olympics, Renmin University sociology professor Sha Lianxiang said.
Etiquette official Zheng admitted it is was a challenging task to raise the civility of society as a whole.
"There is a saying that it takes three generations to bring up a noble, so I can't guarantee that impolite behavior will be eradicated in time for the Olympics," she said.
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Mother's Club Booming in Shanghai
Source: China Radio International | Updated: 12-20-2007
It is estimated that the year 2008 will see 175,000 babies born in Shanghai, this boom has nurtured a new business -- maternal services, including pre and postnatal care. Keen to capitalize on potential opportunities, Xu Yun, a six-month mother-to-be, ventured into the market by turning her family-run hotel into a club providing personalized care for new moms and their babies.
The club, opened on Wednesday, has 100 suites and is the largest in Shanghai, according to the local news website eastoday.com.
Besides local people, mothers from neighboring cites are also eyeing Shanghai as the best place to get maternal services, said Xu, who drew inspiration from her own experiences seeking an ideal place to find guidance in nursing and pregnancy.
According to the club's price list, an ordinary suite costs 26,400 yuan ($US3,579) a month and the deluxe one 35,400 yuan ($US4,799). The club's services include nursing care for mothers and babies as well as nourishing meals specially designed for new moms.
"All of our nurses are professionals from the gynecological and obstetric departments of big hospitals," Xu added.
The price may be beyond ordinary peoples' reach, but most women only have this experience once in their lifetime, says the boss.
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Minister: More effort needed to tackle tuberculosis
Source: China Daily | Updated: 12-20-2007
Significant progress has been made to contain the spread of tuberculosis (TB) in China, but the disease is not yet under control, Health Minister Chen Zhen said this week.
The Beijing-based Health News, produced by the Ministry of Health, quoted Chen as saying that TB prevention and treatment campaigns had demonstrated initial success and also been praised by the international community.
"We have to face up to the problem and be ready for new challenges ahead of us," Chen told a workshop on TB containment on Tuesday.
"We cannot be complacent about our prevention work, and efforts have to be stepped up even more in the future."
Although it kills more 130,000 Chinese every year, TB can be cured with timely treatment, the ministry has said.
Many of the casualties are a result of people contracting the drug-resistant strain of TB, which is mainly caused by delayed medical treatment.
Official figures show that drug resistance occurs in 28 percent of China's TB patients.
Many people are afraid to seek treatment for fear of losing their jobs, experts have said.
Chen urged governments at all levels to increase efforts to monitor and contain new outbreaks, ensure there is enough investment in preventative programs, and improve training for health professionals.
In 2001, the government allocated 40 million yuan ($5.4 million) a year to fund free examinations and treatment for people infected with TB.
All citizens can access these medical services through their local TB prevention and treatment organization.
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China eliminates Freon from tobacco industry
Source: CCTV | Updated: 12-20-2007
The country's tobacco industry says it has eliminated the use of freon from its production process. The step meets an important target of the Montreal Protocol.
According to that protocol, China has to phase out the use of freon in tobacco production by the end of 2009. To meet the target, the tobacco industry has spent seven years upgrading facilities and introducing new technologies.
Freon is a chemical gas that depletes the ozone layer.
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Anti-bird flu drill held in Shanghai
Source: CCTV | Updated: 12-18-2007
Following the two most recently reported cases of human bird flu infection in neighboring Jiangsu Province, health authorities in Shanghai have carried out a drill to test the city's response to the virus.
The exercise was staged just in time for the peak season for respiratory infection.
The drill started 9:15 AM when a young man checked in at a community clinic in Jiangning Road neighborhood. With symptoms including fever, coughing and headaches, the man was immediately transfered to Jing'an District Central Hospital. The patient said that he had recently been to a cockfighting show overseas.
Doctors then sent his test sample to the Shanghai Municipal Center for Disease Control & Prevention or SCDC and started checking the patient's close contacts.
Meanwhile, SCDC sent the patient in an ambulance to the Shanghai Public Health Center for isolated treatment.
A doctor said, "We suggest to transfer the patient for isolated treatment, and to hold an expert panel for the further diagnosis."
The most recent case of bird flu in Juangsu Province alerted local health authorities to the issue. They hope the drill can test and improve their future disease monitoring and control abilities.
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Transgenic rabbit: Ideal for human disease research
Source: CCTV | Updated: 12-20-2007
Scientists have successfully cloned the world's first transgenic rabbit in Shanghai. The rabbit has survived more than 3 months and is expected to become a more ideal animal model for research on human diseases.
All the rabbits here look alike. But only one is different. Scientists transplanted a fluorescence protein from a jelly fish into the rabbit's gene to make it unique worldwide. Although a few more rabbits of the kind were born prior to this one, it's the only one that has survived several highly fatal periods, such as ablactation, after birth. Scientists say the successful cloning of the transgenic rabbit will provide more ideal animal models for the research on human diseases.
Chen Xuejin, director of Biology Research Center, Xihua Hospital, said, "Compared with a mouse, which is currently the most widely used animal model in research, rabbit's physiology is closer to that of human beings. And it is especially suitable for the research on eye diseases.
The transgenic technology can further tailor the rabbit's gene into a model we need for specific research."
Scientists add, cloning a rabbit is far more difficult than cloning some big mammals, because the rate is relatively lower for developing a rabbit embryo.
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Let the people's voice be heard loud and clear by GDP-hungry officials
Source: Shanghai Daily | Updated: 12-20-2007
MANY of China's economic woes, from air pollution to traffic jams, have their roots in poorly supervised local authorities obsessed with short-term GDP growth, especially local officials forging ahead with projects opposed by the public.
Therefore, two public forums last week for the outpouring of angry public opinion against an officially favored project was a victory not only for environmentalists but for democracy in decision making.
This happened in Xiamen, Fujian Province, but the message for the whole nation is clear: public forums are good and the people must have a real say in decisions that affect them.
On December 13 and 14, most citizens categorically opposed construction of a major paraxyline (PX) plant near the city proper.
The project was planned to be built in Haicang District, 16 kilometers from downtown Xiamen.
It remains unclear whether the Xiamen authorities will eventually heed the public voice, and move the project elsewhere. For now, it's on hold.
Xinhua news agency quoted Zhu Zilu, secretary-general of the municipal government, as saying at the conclusion of the forums: "I assure you that the municipal government will properly deal with the environment assessment."
Some people are worried that paraxylene causes cancer and pollutes the environment.
In fact, Xinhua quoted experts as concluding that the original location of the proposed PX project "was too small and inadequate for the diffusion of atmospheric pollution."
The experts cited were from the Chinese Research Academy of Environmental Sciences, which was entrusted by the Xiamen municipal government in July to assess the environmental impact of the PX project.
If Xiamen keeps its promise made in June that it will honor expert opinions, Xinhua's report of the expert opinions should relieve the concerns of Xiamen citizens.
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To regard China-EU friction with usual mindset
Source: People's Daily | Updated: 12-19-2007
Sino-European Union (EU) ties have occupied an eminent position for some time on China's diplomatic agenda, and they have drawn a lot of media comments both at home and overseas. For instance, some comments say the Sino-EU honeymoon is over; Europe is now turning to the stance of being pro-America and alienating China, and it poses a thorny issue for China's diplomacy to respond to (deteriorating) Sino-EU ties.
How to view the current China-EU ties ? In my view, an all-round approach is most needed. China's relations with EU have scored a tremendous progress in the last 32 years since the forging of their diplomatic ties in 1975, and such an immense progress is beyond the expectations of those people who were most optimistic for Sino-EU ties. Please pay attention to the ensuing facts:
The Sino-EU trade volume has risen from 2.4 billion US dollars in 1975 to more than 330 billion dollars this year; the EU, which did not make any investment in China in 1975, input close to about 60 billion dollars in the country this year and, to date, some 20,000 EU firms have settled in China; the country, which did not see any tourists from EU in 1975, has so far received more than 2 million tourists from EU nations this year; and no students from China were around at schools in the EU in 1975, whereas the number of Chinese students in Europe has totaled some 200,000 at present.
Then, why is there a drastic rise in the number of problems and friction between China and EU? To my mind, it is primarily an outcome inflicted by the great expansion of bilateral ties. There was not any frictions when its EU trade was very limited and it did not draw any media coverage. To date, however, problems and friction are inevitable as EU has become China's biggest trade partner and China the second trade partner of EU. So any trivial matter will attract close media attention.
At the same time, people should note that Sino-EU friction only covers a very tiny part of the huge bilateral trade volume, and we should not only see trees but not the forests.
Is Europe really "Pro-America" and alienating China"? Yes, indeed, French-US ties have improved noticeably since Nicolas Sarkozy became the French president. The Improvement of French-US ties, however, does not mean to be estranged from China. During his visit to China in late November, he repeatedly stressed that he would follow in his predecessor's footsteps to further develop French-China ties.
Meanwhile, President Sarkozy in his China visit unequivocally called for seeking to lift the EU arms embargo against China and grant the country its full market economy status. His China trip, as a matter of fact, was crowned with a full success, and evidence has proven that French-China ties have not retrogressed in the wake of betterment in French-US relations.
Moreover, China's relations with other global powers have their respective independent values, and an overall progress has been scored in retrospective of the nation's ties with these powers: Sino-US ties are going on developing, Sino-Japanese ties are making improvements in a sustained way, and Sino-Russian ties are expanding smoothly. Sino-EU ties are charging ahead continuously, and the Sino-EU bilateral trade volume has risen to 330 billion dollars this year from 272.3 billion dollars in 2006, and this represent not a small progress in itself.
Of course, in last September, German Chancellor Angel Merkel, despite opposition from China, met with the Dala Lama in her official office in the Chancellery in Berlin. This action of hers has infuriated people in China, and the Chinese side, too, has made a prompt response. What meriting particular attention, however, is that this action of hers has also provoked denunciations of many people in Germany, including those inside her party in power.
Problems and friction between the two sides could be possibly inevitable along with the advancement of Sino-EU ties since China and EU are in the different stages of economic growth with different social systems, and different histories and cultural traditions. Overall, common interests are far greater than differences nevertheless, and these difference or disparities, should not to be overlooked.
What should people do with the emergence of differences (between China and EU)?
In my opinion, people in China should regard or approach them with a usual mindset. The so-called "usual mindset" is meant neither to exaggerate the existing problems nor to belittle them, but to dispose of them in a very realistic manner and, in other words, to settle them properly through dialogue and consultation. With the usual mindset, it is also meant not to carry away one's emotions.
Looking back, China has long been subjected to bullying by global powers in history, and so people in the country incline to be agitated easily whenever something hazardous comes up. Let bygones be bygones and things are entirely different today."The Chinese people have stood up," as late Chinese leader Mao Zedong declared at the inaugural ceremony on the founding of new China at the Tian An Men Rostrum on October 1st, 1949.
To date, China has played a vital role on the world arena, but its people, nevertheless, still have the resonance to sound their usual mindset. Whenever any problems arise, excessive emotions can only make matters much worse, more complex and hence it will be detrimental to their settlement.
In a nutshell, Sino-EU ties have both frictions and problems, but they are in a steady progress overall, and so the perspective for China-EU relations are quite optimistic.
By Wu Jianmin, President of the China Foreign Affairs University in Beijing, and translated by People's Daily Online.