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Jan 7

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 yesterday 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 U.S. dollars), 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 (20.4 billion U.S. dollars) in 2002 to 60 billion yuan (8.1 billion U.S. dollars) 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 (19.3 billion U.S. dollars), 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 U.S. dollars) and is expected to hit 5.1 trillion yuan (689 billion U.S. dollars) 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.

Jan 5

The European Union (EU) expressed its welcome on Wednesday to the announcement by President Barack Obama that the United States will further reinforce its engagement in Afghanistan.

“This announcement comes at a time of renewed focus and engagement by the international community as a whole. The European Union stands ready to work closely with the United States and other parts of the international community in addressing the challenges in Afghanistan,” Sweden, the current rotating presidency of EU, said in a statement.

The 27-nation bloc reiterated its strategic partnership with the United States in the region.

It further stressed the importance of close and strategic coordination of the international efforts, under the lead of the United Nations Assistance Mission in Afghanistan.

The EU remains determined to enhance and improve its engagement in Afghanistan in accordance with the Plan for Strengthened EU Action in Afghanistan and Pakistan, adopted by the Council of the European Union on 27 October 2009, the statement added.

After months of review, the Obama administration on Tuesday renewed its strategy for Afghanistan by sending 30,000 additional troops to the country in a decisive war against the al-Qaida network and extremists.

Jan 5

Stock futures continued to trade in a narrow range Wednesday after a private group’s report showed job cuts declined in November for the eighth straight month, but not as much as forecast.

The Federal Reserve’s assessment of regional economic activity is also set to be released in the afternoon, providing further insight into a potential recovery.

Overseas markets were mixed.

In the first of three straight days of employment reports, the ADP National Employment Report says 169,000 private sector jobs were lost in November, worse than the 160,000 cuts expected by economists polled by Thomson Reuters.

The eighth straight decline in job losses provides further evidence the country’s economy is recovering, but at a slow pace. ADP said 195,000 jobs were lost in October. A stabilization in job losses and eventual rehiring of workers is considered vital to a continued recovery.

Joel Prakken, chairman of Macroeconomic Advisers, which partners with ADP to compile the data, said in a statement that losses are “likely to decline for at least a few more months” as employment usually lags a recovery in economic activity.

The ADP jobs report is often used as a gauge for Friday’s monthly unemployment report from the Labor Department. Economists expect the unemployment rate remained flat at 10.2 percent last month.

Data on weekly jobless claims is due out Thursday.

Ahead of the opening bell, Dow Jones industrial average futures fell 3, or less than 0.1 percent, to 10,458. Standard & Poor’s 500 index futures fell 0.20, or less than 0.1 percent, to 1,108.20, while Nasdaq 100 index futures rose 0.25, or less than 0.1 percent, to 1,792.25.

Investors hunting for further signs of a rebound will review the Fed’s beige book report, which is due out at 2 p.m. EST. The report breaks down economic activity by region.

Stocks surged on Tuesday, resuming their upward climb that was temporarily halted by debt concerns in Dubai. The months-long pattern of a weakening dollar pushing commodities prices, as well as energy and materials stocks, higher continued.

New economic data remained mixed, but indicated signs of modest improvement. A report on manufacturing showed the sector expanded in November at a slower pace than the previous month, but new orders were picking up. That signals expansion is likely in the coming months.

The Dow and S&P both gained 1.2 percent, while the Nasdaq composite index jumped 1.5 percent.

On Wednesday, the dollar modestly declined against most major currencies, while gold prices rose, again touching a new high. Gold, which is trading at $1,210.80 an ounce, rose as high as $1,218.40 an ounce in earlier dealings.

Meanwhile, bond prices were little changed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.30 percent from 3.29 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.06 percent from 0.04 percent.

Overseas, Japan’s Nikkei stock average rose 0.4 percent. In afternoon trading in Europe, Britain’s FTSE 100 slipped 0.1 percent, Germany’s DAX index rose 0.1 percent, and France’s CAC-40 gained 0.1 percent.

Dec 30

China’s central bank has set a lower target for loan growth rate of 12 percent for 2008 in efforts to curb lending growth and cool the economy, state media reported Thursday.

Lending growth would be strictly controlled and branches required to report new loans monthly, the Shanghai Securities News reported, citing a source with a major state-owned bank.

The lending growth target for this year was 15 percent.

But that has already been overshot with new yuan loans totalling 3.58 trillion yuan from January to November, up nearly 21 percent from the same period a year earlier.

China is attempting to curb lending growth and investment spending as part of broader efforts to cool an economy that is likely to expand by about 11.5 percent in 2007, marking the fifth consecutive year of double-digit growth.

The newspaper said 2008 new loan quotas for Bank of China would be cut to 260 billion yuan from the 280 billion it notched-up in 2007.

It said ICBC, China Construction Bank and the Agricultural Bank of China were told to keep new loans in 2008 within targets set for 2007, which were 365 billion yuan, 350 billion and 310 billion respectively.

Dec 29

In the absence of Winter Olympic champion Han Xiaopeng, Li Ke emerged as the most impressive men’s aerials jumper at the 11th Chinese National Winter Games here in Yabuli.

Having led Changchun to the victory in the men’s team event on Friday, Li became a double gold medal winner on Monday after grabbing the individual free event title with a remarkable advantage of 9.911 points over the silver medallist Jia Zhongyang of Fushun.

Nevertheless, the 24-year-old Li appeared to be pretty cool facing the biggest victories in his career.

“Of course I am happy for the victories, but I am not so satisfied with my performance,” Li told reporters. “I made a little mistake in my first jump, I should have done better.”

Li was to leave Yabuli Monday afternoon to take part in World Cup events to be held in Canada, the United States and Japan.

“I had my best ever World Cup finish, a sixth, at Changchun last month, I will try my best in the following events,” Li added.

Born in Jiangsu province, also the hometown of Han Xiaopeng, Li began to have freestyle aerials training in 1998. Five years later, he was called up by the national team.

“Han is an Olympic champion, every other jumper in the national team is trying to catch up with him,” Li said. “Our goal is to win the gold medal at the Vancouver Games, all the jumpers including me will strive toward that.”

According to Li, he has to improve both on degree of difficulty and consistency of landing in order to have better results at international competitions.

“The degrees of difficulty of the jumps I performed at this Games were the same with what Han did at the Turino Winter Games, but I did not finish very well,” Li said.

Li also admitted he should be stronger mentally.

“I had a big chance to win on Saturday, but I was worn down by the pressure,” he said, referring to the men’s compulsory event, where Li fell on both jumps for a disappointing seventh finish. “Han’s absence brought me pressure as well as opportunity.”

Ren Hongguo, vice president of the Chinese Ski Association, was confident in Li’s future.

“Li is a very talented jumper with the Chinese national team,” Ren said. “With his help, the Chinese team will have a bigger chance to win the gold medal at the next Winter Olympic Games.”

Dec 26

The recent injury of China’s NBA star Yao Ming has raised the concerns of officials from all the other Chinese national teams, especially for Liu Xiang, one of China’s biggest hopes for the Beijing Olympic Games.

Senior athletics officials said yesterday that efficient measures have been taken to secure the safety of the star hurdler.

“All competitive sports have the risk of injury and the Chinese athletics team has always paid much attention to that and taken a series of measurements to reduce the possibilities of injures,” said Feng Shuyong, head coach of China’s national athletics team.

“At present, there are more than 30 doctors working for the whole team, especially those key athletes like Liu, who has two doctors.”

Those doctors and coaches, Feng said, supervise the entire process of athletes’ warm-ups and cool downs before and after training sessions, which, when ignored, can result in injury.

“Yao’s injury was caused by long-time fatigue. The same problems can occur in track and field due to over-training or improper arrangement of the practices,” Feng said. “We will try to give a proper workload to the athletes and do the best we can to avoid any injury.”

With those safeguards in place, Liu is now under intensive winter training in Beijing. According to his coach Sun Haiping, the world 110m champion and Olympic gold medalist has enjoyed his “best ever” winter training regime and is eager for competitions.

“Everything is going smoothly and as scheduled,” Sun said. “Since the winter training, we put 60 percent attention on the preparation for outdoor competitions, mainly the Olympic Games, and 40 percent on the upcoming world indoor championships.

“We did not fully concentrate on the indoor session until last week, but Liu is in very good form right now.”

The 24-year-old world record holder, whose personal best indoor time is 7.42 seconds, will return to competition at the World Indoor Championships in Valencia, Spain, next week, where he will meet Dayron Robles of Cuba, his strongest opponent at the moment.

“Robles did very well in this indoor season and he also said that he would break the world record, so he is Liu’s strongest opponent at this time,” Sun said. “We hope Liu will improve his personal best in the indoor worlds, which is possible.”

After returning from Spain, Liu will search for a training base with similar weather to Beijing and a track like the one at the “Bird’s Nest” National Stadium, the athletics venue for the Beijing Games.

“We do not have a home advantage in being able to train in the Bird’s Nest ahead of others,” Sun said. “The only chance for us will be the athletics test event in May this year. Based on Liu’s training condition right now, I’m fully confident with his outdoor performance this year.”

Including Liu, an 11-member Chinese team will be in Spain on March 1 to compete in eight events at the indoor Worlds.

“We will use the opportunity to let those athletes compete with world’s best to practice their competing capability and psychology,” Feng said.

Dec 24
Dazzling debut for 3G service
Posted by admin in Uncategorized on 12 24th, 2009| | No Comments »

China’s new 3G phones debuted in Shanghai Tuesday with flashy functions that attracted crowds of shoppers, even though sales were only moderate.

A limited variety of models and the public’s unfamiliarity with the 3G technology affected the first day of the commercial trial, industry sources said.

People can purchase the TD-SCDMA (time division-synchronous code division multiple access) phones and subscribe to 3G services, with a number starting with 157, from China Mobile.

From early Tuesday, people crowded into Shanghai Mobile’s Renmin Road shop, one of the carrier’s two main TD-SCDMA outlets. The available phones were made by six firms, including ZTE, Samsung, Lenovo and LG, and they cost from 1,800 to 3,800 yuan (US$256 to US$535).

By 4 p.m., Samsung and Lenovo phones were sold out in the Renmin Road outlet. By evening, about 50 3G services had been sold in the other outlet on Zhangwu Road near Tongji University.

Customers were most impressed with eyeball-catching functions such as mobile stock quotes, video calling and TV on the handsets. During a video-calling demonstration, callers could clearly see each other but image quality was lost if they were moving.

The TD-SCDAM signal offers coverage within the city’s Outer Ring Road, at the airports, around the Formula One circuit and hotels, and along Metro lines.

China Mobile has launched the 3G service in eight cities including Guangzhou and Beijing. In Shanghai, the carrier will sell the phones in 164 outlets, with the first batch expected to be about 10,000 units.

The 3G network is not available in other cities but users can switch to 2G networks there, outlet officials said.

“I’m interested in China’s 3G services for high-speed data services and my most-needed functions are Internet access and a faster e-mail service,” said Dimitri Kaczmarek, who works for a finance firm in Shanghai.

Kaczmarek wanted to buy the Samsung L288 (2,800 yuan) but it was sold out , so he bought a ZTE U980 (3,800 yuan) dual-model phone and a ZTE MU318 data card (700 yuan), which can be plugged into a laptop for Internet access.

An IT engineer named Wang said: “It’s cool to have a 3G phone and it’s the right time for me to replace phone.” Wang admitted he would mainly use voice services on his LG KD876 (2,500 yuan).

Credit cards were not accepted yesterday, which meant some people were unable to buy 3G phones.

Users can choose packages costing from 28 yuan for 150 minutes to 88 yuan for 600 minutes. During the trial, users can enjoy a 50-percent fee discount, which makes 3G costs close to 2G services, according to China Mobile.

Dec 23

Chinese stood in silence and grief on Monday afternoon to mourn the tens of thousands of victims of the worst earthquake in decades, but their sorrows didn’t shake their confidence in China’s economy, said analysts.

The stock market opened sharply lower after the 8.0-magnitude quake on May 12, but the benchmark Shanghai Composite Index was down merely 0.6 percent in the following five trading days, closing at 3,604.76 points on Monday.

Securities analyst Ying Jianzhong attributed the unexpectedly stable performance of Chinese shares to the anticipation that the quake would not alter China’s overall economic direction.

“The negative effect on the stock market is diminishing,” said Ying.

He noted that as relief and recovery work started, demand for daily necessities, medicine, steel and cement had driven up companies in those sectors.

The quake would not shake overall confidence in the economy; therefore, the government would maintain its goals of preventing overheating and curbing inflation, economist Wang Xiaoguang told Xinhua in an interview on Monday.

“Unlike the Sept. 11 terrorist attack, the catastrophe has not aroused fears about the national economy, as it was a natural disaster caused by force majeure and limited to a small area,” said Wang.

The People’s Bank of China, the central bank, announced last Wednesday a move to provide 55 billion yuan (about 7.85 billion U.S. dollars) in refinancing for commercial banks and rural cooperatives in quake regions of Sichuan and Gansu, in order to increase their liquidity and ability to support disaster relief and reconstruction.

It also allowed banks in six cities that were hardest hit by the quake to temporarily keep their deposit reserve ratio at the prevailing level, while lenders in other regions must raise the ratio on Tuesday to curb excess liquidity.

“Those measures were just temporary support policies for disaster-hit regions and did not point to any changes in the government’s tight monetary policy,” said Wang.

China has controlled money supply to rein in rising prices and curbed loans to cool sizzling fixed-asset investment that drove the country’s double-digit growth in gross domestic product (GDP).

Global investment banks have predicted a much smaller economic impact from the quake than from the snow storms in January and February.

The biggest loss caused by the quake was that of life and property, but it was not included in the calculation of GDP growth, said Wang.

The 8.0-magnitude quake that struck southwest China’s Sichuan Province on May 12 had killed 34,073 and injured 245,108 others as of noon on Monday.

Losses were estimated at 67 billion yuan in the province, said Vice Minister of Industry and Information Xi Guohua at a press conference on Monday.

Meanwhile, Wang said post-disaster reconstruction could stimulate investment and boost GDP growth in the longer term.

The quake could cut annual national GDP growth by 0.2 percentage point due to slackened industrial output and consumption in the quake zone, CITIC Securities chief macro-economic analyst Zhu Jianfang estimated.

“Economic growth and company profits might suffer from the quake in the second quarter but resume normal performance in the third and fourth quarters, or even rebound sharply in some sectors,” said Zhu.

Dec 20

Firefighters on Sunday in Central California used cooler, damper air to their advantage in the ongoing battle against a wall of flame ravaging Santa Barbara County as they tried to gain a foothold before the return of hotter, drier conditions.

Moist air currents from the ocean cooled temperatures to the high 70s Sunday, helping fire crews keep the four-day-old blaze from spreading. The fire, which has been burning since Tuesday, was less than a third contained Sunday afternoon.

“We’ve got a window here with the humid weather that’s really helping us. But we know we’re in this for the long haul,” said Dixie Dies, spokeswoman for the state Incident Management Team.

Temperatures are forecast to start climbing Monday and to reach the 90s by Thursday. The moist air currents are expected to dissipate, causing drier conditions, Dies said.

Lightning strikes were also possible as a new weather system moves in, forecasters said.

The fire, 28 percent contained Sunday night, has consumed about 13 square miles near the south border of Los Padres National Forest.

Nearly 2,700 homes were in jeopardy earlier in the weekend, but by Sunday night many of the evacuation orders were lifted or downgraded to warnings.

Sunday’s cooler weather also helped firefighters advance on a two-week-old blaze that has destroyed 22 homes in Big Sur, at the northern end of the Los Padres forest.

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