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SHENZHEN: Efforts to explain and publicize the new Labor Contract Law have thwarted many attempts to dodge the provisions included in it, but violations still occur, an official of a worker's union said Wednesday."We have been keeping an eye out for any abnormal redundancies and it appears the situation is improving," Xie Liangmin, sub-chief of the legal affairs department of the All China Federation of Trade Unions, said during a visit to this southern city.However, a company in Guangdong Province was recently found to have fired a group of contract workers and then rehired them through a manpower services company, Xie said."All attempts by companies to evade their responsibility to take care of their employees will be punished after the detailed regulations of the Labor Contract Law are issued," he said.The federation is working closely with the authorities to draw up detailed regulations, the release of which is likely to be postponed until the first quarter of next year, Xie said.Although the federation has publicly criticized two companies - IT equipment manufacturer Huawei Technology and retail giant Wal-Mart - for attempting to dodge some parts of the law before it takes effect on January 1, no punishments have been handed down.Dong Ping, an official with the Ministry of Labor and Social Security, called on companies to come to terms with the legislation."The law provides an opportunity for companies to develop harmonious and stable working relationships with their employees within a more competitive environment. A successful company always respects its employees and abides by the law," Dong told a forum on promoting the new law.Terry Guo, CEO of Foxconn Technology, a leading IT manufacturer with operations in Shenzhen, said it would give its full support to the Labor Contract Law."The new law will prod companies into becoming more efficient and upgrading their technology. It should help them accelerate their strategic repositioning and restructuring," Guo said.He said Foxconn will work to improve the quality of its staff, save energy and encourage innovation to offset expected rises in its operational costs.The company has also revised its human resources policy and internal regulations to bring them in line with the Labor Contract Law.

BEIJING -- China has ordered its police to behave well and improve their services to the public as the country marks the one-year countdown to the 2008 Beijing Olympic Games. The Ministry of Public Security has launched a one-year inspection campaign in Beijing and other cities hosting Olympic events as well as major tourist cities to ensure a polite, standard and efficient police services to citizens and foreign visitors. The inspection mainly deals with police who take a bad attitude towards the public and do not wear standard uniforms and insignia. An inspection team will oversee police service departments such as community police stations, traffic police brigades, patrolling cops, border entrance and exit offices, reception rooms for foreigners, border checkpoints, visa application centers and police alarm "110" phones. Police who smoke, chew food, chat or use chilly words in front of the public will be immediately punished by inspectors on the spot, says the ministry, adding the inspection team will find out whether the police can take proper, immediate and effective actions when the public, especially foreigners, ask for help. The campaign, which is a part of the overall Olympic security deployment, is aimed at maintaining a sound order for the upcoming congress of the Communist Party of China and the Olympic Games next August, and setting a good image of the Chinese police, according to the ministry.

China is tightening its grip once more on foreign investors in Chinese real estate, banning them from borrowing offshore in the latest effort to tame property prices and cool the economy. The new rule, set out in a circular from the State Administration of Foreign Exchange , could squeeze foreign investors who take advantage of lower interest rates outside China. Some may find it especially difficult to fund projects as Beijing has told its banks to cut back on loans for the construction industry. The central bank ordered Chinese banks to stop lending for land purchases as far back as 2003. "The only alternative is to fund the entire equity," said Andrew McGinty, a partner at the law firm Lovells in Shanghai. "But that's not a very favoured method, because your internal return on investment goes down dramatically." Property funds operating in China tend to borrow to fund at least 50 percent of a project's value. The circular, which the currency regulator sent to its local branches in early July but has not yet published on its Web site, also increases red-tape for foreign property investors. Investors seeking to bring capital into China to set up a real estate company must now lodge documents with the Ministry of Commerce in Beijing -- not just with local branches of the ministry, according to the new circular with de facto effect from June 1. That process could take a month or more, said an official at the Ministry of Commerce, declining to be identified. "What we mean is very clear: First we are targeting foreign real estate firms that are illegally approved by local governments," a SAFE official said. McGinty said the new rule would reduce foreign investment in the real estate sector, but the real impact would depend on how it is enforced. UNCERTAIN IMPACT China has applied a raft of measures to rein in property investment, including interest rate rises and rules to discourage construction of luxury homes. Some steps have specifically targeted foreign investors, who account for less than 5 percent of total investment in the property sector. Foreign investors must now secure land purchases before setting up joint ventures or wholly owned foreign enterprises in China. However, funds such as those run by ING Real Estate, Morgan Stanley , Hong Kong's Sun Hung Kai Properties , Henderson Land Development and Singapore's CapitaLand Ltd. are pouring more money than ever into China to tap a middle class hunger for new homes and rising capital values. China's urban property inflation rose to 7.1 percent in June, compared with a year earlier, from 6.4 percent in May. McGinty said some foreign investors may eventually quit China for more interesting markets if an inability to employ leverage reduces their internal rate of return. However, others said they would stay on. "We are not too worried about it. Cooling measures won't stay forever," said Robert Lie, Asia chief executive for ING Real Estate, which has raised a 0 million fund to build housing in China. ING Real Estate borrows locally, partly to hedge its currency risk. Most other foreign investors in China do the same. Some foreign property firms that have been in China for many years have strong connections with local lenders -- Chinese banks as well as international banks incorporated in China. "There is still strong interest in China, although there will be some form of slowdown in the number of transactions," said Grey Hyland, head of investment at Jones Lang LaSalle in Shanghai. He said the new approval rules would further dampen the ability of foreigners to compete with local rivals. "It's still early to say how, because these rules are still very new and being tested," Hyland said. One consequence, he added, could be to drive foreign property investors inland to second- and third-tier cities that the authorities are eager to develop and where approval is therefore easier to obtain.

BERLIN - German Chancellor Angela Merkel Tuesday called for "good and intensive relations" with China.German Chancellor Angela Merkel addresses a news conference in Berlin January 15, 2008. [Agencies] "The German side is perfectly ready" to continue the sound relations with China on both economic and political levels, Merkel told a news conference in Berlin, in response to a question raised by Xinhua.The two countries have to rely on each other when it comes to international cooperation, said Merkel, who plans to visit Beijing in October for the Asia Europe Meeting (ASEM).The Chancellor said China played a "constructive role" at the climate conference held on the Indonesian island of Bali in December which laid a groundwork for a successor to the Kyoto agreement on cutting greenhouse gas emissions.She also wished China every success in hosting the Beijing Olympic Games.

As Beijing's migrant population continues to grow, some experts believe the decades-old hukou system is outmoded and broken. A migrant worker walks past a row of new property buildings in Beijing April 4, 2007. As Beijing's migrant population continues to grow, some experts believe the decades-old hukou system is outmoded and broken. [Reuters]The policy requires migrants to get temporary permits, or the much harder to obtain hukou, once they move to the city. These days, a growing number of those who relocate to find better jobs in Beijing tend to stay longer or even resettle with their entire families, according to a study by the Renmin University of China. The investigation revealed that this "floating population" in Beijing, currently at 3.57 million, stays an average of 4.8 years in the city. In addition, over 51 percent of those remain for more than five years while over 41 percent bring the whole family. "It is getting trendier for them to come and reside with the whole family," said Zhai Zhenwu, dean of the School of Social and Population Science. Representing 23 percent of local residents, most migrants live in the nearby suburban areas and villages within downtown. The thriving low-skilled labor market in Beijing has been a major source of jobs for unskilled migrants. Zhai said the most basic jobs in the city offer higher wages that far exceed what migrants would have earned in rural areas. But city life also means a poor quality of life and inadequate social services. For example, statistics show that the urban per capita disposable income in Beijing is five times more than the average in rural areas of neighboring Hebei Province and 6.7 times more than that in Anhui Province. China's hukou system, established in the 1950s, divided the Chinese into two categories: rural and non-rural households. The policy was established to control population migration, largely from rural to urban areas. Under the policy, rural people are not granted social security in cities and are restricted from receiving public services such as education, medical care, housing and employment. On the other hand, their urban compatriots have no access to farmland in the countryside. For years, non-rural residency, especially in cities like Beijing and Shanghai, has been a difficult goal for outsiders, particularly rural migrant workers. According to Zhang Chewei, vice-president of the Research Institute of Population Science at the Chinese Academy of Social Sciences in Beijing, the system needs work. He referred to the "unfair treatment in social recourses and justice, also it hinders market development in both rural and urban areas." For example, each migrant worker must fork over 20,000 to 30,000 yuan (,597 to ,896) for a child to enrol in a local primary or middle school. And they're often turned down if they try to buy affordable homes in urban areas. It is estimated that more than 120 million rural workers live in cities throughout China. "Hukou has played a significant role as basic data provider and identification registration in certain historical periods, but it has become neither scientific nor rational," Zhang said. Reform of the hukou system began in 1992, but the policy remains complicated and unfair for many. Last month, the Ministry of Public Security said the country will reform the system, but did not offer any details. Yu Lingyun, a professor with the Law School of Tsinghua University, called for the system to be abolished. "It is not hukou that has robbed the social welfare of the 'floating population,' but the discriminating system itself, and most fundamentally the limited public finance," Yu told China Daily yesterday. "If not for the hukou system, schools can find other reasons to decline a rural student," he said. "Under current conditions, at least we should not bear any prejudice against them," he said.