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Construction workers toil on the roof of a new building being erected in Beijing April 1, 2007. [Reuters]Stronger-than-expected economic figures have prompted a number of international economic research institutions to revise upwards their forecasts for China's gross domestic product (GDP) growth. Almost all the major economic indexes in the first two months of this year have exceeded those for the same period last year. "The country's GDP growth in the first quarter will be faster than in the equivalent period last year and also that of the previous quarter," Chen Dongqi, deputy director of the Institute of Economic Research of the National Development and Reform Commission, said. The State Information Center has adjusted its GDP growth forecast for the first quarter from 10.2 percent to about 11 percent. Despite the government last year adopting a number of tightening measures, economic growth has shown clear signs of rebounding in the past quarter. Statistics show that urban fixed-asset investment picked up moderately to 23.4 percent year-on-year in January-February, and from about 20 percent in the fourth quarter of last year, reversing the trend of a gradual slowdown since last July. Meanwhile, the trade surplus registered a massive leap of 230 percent, and retail sales were up 14.7 percent on the first two months of last year. "Industrial growth is a key driving force behind overall economic growth, and power generation is also a useful indicator," Chen said. According to the National Bureau of Statistics, China's industrial output rose 18.5 percent year-on-year while industrial profits soared 43.8 percent in the first two months. Growth in power generation also accelerated to 16.6 percent year-on-year from less than 14 percent in the same period last year. Despite expectations the government will introduce another round of tightening measures soon, global investment bank, Lehman Brothers, still revised up its forecast for the Chinese economy. According to a recent report by the firm, the first quarter growth forecast has been raised from 9.8 percent to 10.1 percent, and the annual growth rate from 9.6 percent to 9.8 percent. "In the light of the stronger-than-expected figures in the first two months of this year and the likely policy responses, we have lifted our full-year growth projections for this year to 10 percent from 9.1 percent, based mainly on stronger growth in credit, investment and exports," Qu Hongbin, the chief China economist with HSBC, said. Domestic banks extended new loans of 982 billion yuan (7 billion) in the first two months of this year compared with 716 billion yuan ( billion) in the same period of 2006. The government forecast early last month that the country's GDP is to grow by about 8 percent this year. The country has just witnessed four consecutive years of double-digit growth, including 10.7 percent GDP growth last year, the fastest in a decade. The latest official forecast reflects the authorities' determination to shift the focus of economic growth from quantity to quality.
BEIJING - Chinese central government offices suffered a day without air-conditioning as they warmed to a campaign to cut energy consumption and improve energy efficiency, Xinhua news agency said on Wednesday. Tuesday's campaign, dubbed "experiencing energy shortage", targeted offices and government departments under the State Council, the nation's cabinet. "Beijing was not as sun-burning as previous days on Tuesday, but the overcast weather still made people sweat in the afternoon," Xinhua said. China's capital has unleashed "energy police" to enforce limits on air-conditioner use as the government pushes to save power and clean polluted skies, state media said this week. China last year vowed to cut energy consumption for every unit of economic activity by 20 percent by the end of 2010. But feverish economic growth has so far defied the target. The government's latest weapon is 22 officials who will check whether offices, hotels, malls and other big buildings in Beijing are observing a demand to set air conditioning no cooler than 26 degrees Celsius (79 Fahrenheit), the Beijing News reported. Worried that the nation cannot sustain resource-sapping growth, the central government has repeatedly ordered officials and companies to save energy. Efforts to clear the capital of pollution have taken on a new urgency with the 2008 Beijing Olympics just over a year away. Chinese President Hu Jintao and other officials have said the country is committed to emission reduction, but refused mandatory caps. Beijing has held up its voluntary energy saving measures as an important contribution to fighting global warming, and called for more technological help for clean energy.

China will contribute about 10 billion yuan (.4 billion) to the International Thermonuclear Experimental Reactor (ITER) project, construction of which will begin in France this year.The figure represents about 10 percent of the project's cost.About half of China's contribution will be spent during the 10-year construction phase of the multination undertaking, sources at the Oriental Science and Technology Forum, held in Shanghai last weekend, said."The goal of the project is to find a shortcut to solve our energy shortage," Luo Delong, deputy director of the ITER China Office, told the forum.He said Chinese researchers will be in charge of building components such as heating, diagnostic and remote maintenance equipment, as well as transporting it to Cadarache in the south of France, where the ITER reactor will be built.ITER, which means "the way" in Latin, is an 11-billion-euro (.5 billion) experiment to study the scientific and technical feasibility of the world's most advanced nuclear fusion reactor. The device is described as an "artificial sun" as it will create conditions similar to those occurring in solar nuclear fusion reactions.If successful, the project could generate infinite, safe and clean energy to replace fossil fuels such as oil and coal, and will be 30 times more powerful than the Joint European Torus (JET), the largest comparable experiment.The ITER project was first initiated by the United States and the then Soviet Union in the mid-1980s. Today, it involves the European Union (EU), the US, Japan, Russia, the Republic of Korea, China and India. China joined in February 2003.The ITER Agreement, signed in November 2006, came into effect last October and has an initial duration of 35 years, though it could be extended for an additional 10 years.Under the agreement, the EU will be responsible for half of the construction costs, while the other five parties excluding India, will contribute equally to cover the remaining expenses.Earlier reports said China would send 30 scientists to France during the construction phase. At the moment, more than a dozen scientists and managers are already working at Cadarache, and more will soon join them.Russia, France and Japan have all developed similar experimental fusion reactors.China became the first country to build a superconducting experimental Tokamak fusion device in September, after successfully completing a series of trials in Hefei, capital of Anhui Province. Despite this success, China still faces a shortage of talent in the field. Scientists and researchers have called for increased efforts to train more scientists to improve the nation's research capabilities.
A senior central bank official has rejected calls for a quicker increase in the flexibility of the renminbi exchange rate, saying the currency's role in rectifying global economic imbalances should not be exaggerated. Hu Xiaolian, deputy governor of the People's Bank of China, said more attention should instead be paid to growing protectionism to safeguard the health of the world economy, according to a central bank statement and Xinhua. She was speaking in Washington on Saturday at a conference during the semi-annual meetings of the International Monetary Fund (IMF) and the World Bank. The meetings are a venue for key financial officials of the two institutions' member countries to discuss global economic issues. Officials and economists at the IMF, which has a mandate to safeguard the global economy and render advice to member countries, said that Beijing should pursue a more flexible exchange rate, for the sake of both the Chinese economy and a more balanced global economy. However, China did not seem to see the advice as being appropriate. "The fund... should respect its member countries' core interests and actual economic fundamentals," Hu was quoted as saying. "Biased advice would damage the fund's role in safeguarding global economic and financial stability." In July 2005, China abandoned the renminbi's decade-old peg to the US dollar and let the currency appreciate by 2.1 per cent. Since then, it has gained almost another 5 percent against the dollar. However, there has been a persistent international chorus, led by the United States, arguing that China has not been moving quick enough in letting its currency rise. US lawmakers have said that the country's trade deficit was partly caused by what they believed an undervalued Chinese currency. Chinese officials say the yuan's flexibility would gradually increase but argue that radical steps would generate shocks in the Chinese economy which could spread to the rest of the world. "The IMF... should attach significance to stability of domestic economies (of member countries) when observing their contribution to outside stability," Hu said. She said the IMF should strengthen surveillance over the soundness of economic policies of countries whose currencies are used as major instruments in other countries' foreign exchange reserves. She was clearly referring to the US, whose low savings rate, and fiscal and trade deficits are agreed to be a key cause for global economic imbalances. Hu also called attention to what is seen as a rising protectionist sentiment, which has been causing troubles for China's exporters. "We call on all countries to harness the opportunities created by globalization... and resolutely oppose protectionism," she said.
HAICHENG, Liaoning: The death toll has risen to 10 following the collapse on Sunday of a dam at an iron mine in Liaoning Province, after rescuers retrieved four more bodies Monday.Rescuers search the missing after the collapse of a dam at an iron mine in Shiqiaozi village of Haicheng, Northeast China's Liaoning Province November 26, 2007. Ten, including a child, has been confirmed dead and another three are still missing. [Xinhua]Zhang Xingdong, vice-mayor of Haicheng and head of the rescue team, said the bodies, including one of a child, were buried deep in silt.He said about 750 people, including soldiers, armed police, local officials and villagers, were continuing to search for three people still missing after the dam collapsed in the village of Shiqiaozi in the city's Ganquan township.More than 30 dredgers have also been employed to help clear the silt, he said."To ensure the safety of rescuers, we have sent experts to closely monitor four other iron tailings dams nearby to guard against possible further accidents," Zhang said.The four dams have a registered capacity of about 1 million cu m of waste ore each.The power supply has yet to be turned back on in Xiangyang, which is one of two low-lying villages hit by a large volume of mud-like debris after the collapse, he said.The debris smothered homes, suffocating and crushing those inside, he said.A further 17 people were injured in the accident and are now in hospital. One is in a critical condition, while three others were also seriously hurt.Doctors have said they are expected to pull through, however.The local government has set up its rescue headquarters at the primary school in Xiangyang village. It has also provided candles, quilts, clothes and food to villagers made homeless.Some were housed overnight in a local school, while others stayed with relatives.Xiangyang, which has a population of about 980, was the worst-hit by the debris, with 33 houses destroyed.The collapse also affected the village of Caijia, which is home to some 500 people. No casualties have been reported there, but there have been reports of severe damage to houses, vehicles and grain fields.The 100-m-long by more than 10-m-high dam was situated on a hillside. A crack more than 10 m long appeared in it and a river of waste ore and mud some 80 m wide spilled down across cropland.With a capacity of 150,000 cu m, the dam, which belongs to the Dingyang Mining Co Ltd, an iron ore producer, was designed to contain waste ore. However, over recent years, a large quantity of water had built up inside it, Zhang said.The mining company is a subsidiary of the privately run Xiyang Corporation, a magnesium refractory products and fertilizer producer based in Liaoning.Xinhua
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