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BEIJING, Feb.2 (Xinhua) -- "The wheat grass gets so dry that it catches fire! I've never seen this in my whole life," said 50-year-old Wei Liuding in Baisha village, Muzhong County of North China's Henan Province. Wang Hongwei, a farmer from Putaojia Village of Henan's Lankao County, grievingly held a grasp of wheat grass roots in his hand. "All the wheat in my land is dying like this," he told a Xinhua reporter. Photo taken on Feb. 2, 2009 shows the droughty reservoir in Yiyang County of Luoyang city, central China's Henan ProvinceHenan, China's major grain producer, issued a red alert for drought Thursday. The provincial meteorological bureau said the drought is the worst since 1951. The drought have affected about 63 percent of the province's 78.9 million mu (5.26 million hectares) of wheat. But Henan Province is not the only victim in thirsty northern China. Anhui Province issued a red drought alert Sunday, forecasting a major drought that will plague more than 60 percent of the crops north of the Huaihe River is no rain is reported by next week. Shanxi Province was put on orange drought alert on Jan. 21, as nearly one million people and 160,000 heads of livestock are facing water shortage. Provinces such as Shaanxi, Shandong, Hebei and Jiangsu are also reeling from droughts. According to the Office of State Flood Control and Drought Relief Headquarters on Sunday, the droughts in northern China have affected about 145 million mu (9.67 million hectares) of crops, and have left 3.7 million people and 1.85 million livestock with poor access to drinking water. Secretary of the office E Jingping said the headquarters sent four working teams to eight provinces to supervise the drought relief work. The Ministry of Finance (MOF) has allocated 100 million yuan (14.6 million U.S. dollars) in emergency funding to help ease the drought. E said about 1.38 billion yuan had been used to fund the relief work since the end of December. Some 74.60 million mu (4.97million hectares) of farmland have been irrigated, and drinking water shortages have been eased for about 500,000 people and 280,000 livestock. The irrigation system in the drought area is under a crucial test. The water flow under Xiaolangdi Dam on the Yellow River reached 550 cubic meters per second as of 2 p.m. Saturday, to help soothe the drought in Henan Province. "The water in my well is very deep today," Wei Liuding told Xinhua reporter Sunday. "Although we were informed that the government's subsidies will be soon handed out to households, I decided not to merely rely on the government, and I am now irrigating the lands for four hours a day at my own expense." But with a family of five, Wang Hongwei was more worried. "Though we irrigate the lands now, the production will surely see a big drop. Like many other people in our village, I am thinking about doing odd jobs in the town to earn some extra cash." Li Xin, an advocate for the income and rights of farmers and migrant workers who opened a company to sue false seed producers, said, "Even if the farmers go to towns and cities to work, their pays will wane as the financial crisis continues to loom." Duan Aiming, head of the Irrigation Research Center of the Chinese Academy of Agriculture Sciences, said the current drought has "sound an alarm to the water resource utility in northern China". "Much water is being wasted, because many mature irrigation technologies cannot be put into practice for lack of funds, and the input on irrigation infrastructure is not enough," said Duan. "Only by a long-term improvement of the irrigation system can the government realize its goal of increasing the grain yield and the farmers' income," said Li. In the first document of the year issued jointly by the State Council and the Central Committee of the Communist Party of China on Sunday, local authorities were urged to take measures to avoid declining grain production, ensure the steady expansion of agriculture and rural stability. "The foundation for securing steady and relatively fast economic growth is based upon agriculture; the toughest work of securing and improving people's livelihoods stays with farmers," it said.
BEIJING, Feb. 13 -- Chinese banks issued 1.62 trillion yuan (7 billion) in new loans in January, up 101 percent year-on-year, prompting some economists to say the government might not cut interest rates for the time being to boost the economy. The massive jump in lending is equal to about one-third of the loans issued in the whole of 2008, a year that began on a generally tight credit line, the central bank said yesterday. M2, which includes cash and all types of deposits and indicates overall liquidity in the financial system, grew in January, too, by 18.8 percent year-on-year. It increased 17.8 percent in December. The massive growth in lending comes at a time when banks are rushing to cherry-pick the juiciest stimulus-package projects, especially major infrastructure ones that need long-term investment, the economists said. Chinese banks issued 1.62 trillion yuan (7 billion) in new loans in January, up 101 percent year-on-year The government announced a 6-billion package on November 9 to boost domestic demand and shore up investment. Though the central government will shoulder one-third of the cost, banks will play an important role in financing the construction of bridges, railways and highways. "The banks are fighting for the best projects in the government's stimulus package," said Ha Jiming, chief economist of China International Capital Corp. "It's not surprising to see that an array of the deals were sealed in the past month." "The massive lending growth minimizes the need to further cut interest rates heftily," said Lian Ping, chief economist with Bank of Communications. "The liquidity problem should ease with such a growth." The central bank has cut the benchmark lending rate by 2.16 percentage points in the past four months and reduced the deposit reserve requirement ratio in order to ensure there's enough liquidity in the market to boost the economy. The growth in lending could also prove to be a blessing for cash-strapped domestic enterprises trying to stay afloat amid shrinking overseas demand and waning consumer confidence. Central bank figures show bill financing, which supplies working capital, accounted for 39 percent of the new loans. Medium and long-term corporate loans made up 32 percent. "It (growth) reduces the default risks of domestic firms, which in turn eases worries over bank asset quality at least in the short term," said Sun Mingchun, an economist with Nomura International. The economists said the dramatic rise in lending could be partly attributed to pent-up demand for loans last year. The central bank had imposed a curb on lending till November last year to combat inflation and prevent the economy from overheating. That left "many firms, especially small- and medium-sized ones, facing a severe cash flow problem", Sun said. Policymakers lifted the curb in November and raised the target for M2 growth to 17 percent for 2009, up from 16 percent that had been in practice since 2006. The move is expected to ensure there's enough liquidity in the market to spur investment and boost the economy, whose growth dropped to a seven-year low of 6.8 percent in the fourth quarter last year. "Credit expansion in the first quarter of this year is expected to be very high because banks can maximize investment returns by front-loading new loans," said Jing Ulrich, managing director and chairwoman of China Equities at JP Morgan. But Ulrich cautioned against a possible rise in credit risk because the increase in liquidity could cause a sharp rise in banks' non-performing loans.

BEIJING, April 15 (Xinhua) -- Foreign direct investment (FDI) in China posted a 20.6 percent year-on-year decline in the first quarter to 21.78 billion U.S. dollars, the Ministry of Commerce announced Wednesday. In March, FDI was 8.4 billion U.S. dollars, the biggest amount since October 2008 which was 8.35 billion U.S. dollars. However, the March figure was down 9.5 percent from a year earlier, ministry spokesman Yao Jian said at a news conference. March was the sixth consecutive month that FDI fell. The good news is that the decline eased from the 15.81 percent drop in February and a 32.67 percent drop in January. Zhang Hanya, an economist with the National Development and Reform Commission said a reduced decline indicated overseas investors growing confidence in the country's economic recovery. Chinese Premier Wen Jiabao said Saturday that the Chinese economy showed signs of positive improvement in the first quarter as a result of the economic stimulus package adopted by China. Yao added stable investment inflows were important for the country to stabilize exports, enhance employment and boost consumption as the government tries to make China more attractive to investors. The ministry said in March it was shifting authority for approving certain foreign investments to provincial governments.
BEIJING, Feb. 23 (Xinhua) -- The recent visits by Chinese leaders to 15 countries and the European Union (EU) have proved extremely fruitful, promoting China's traditional friendship with them and boosting people's confidence regarding the future amid the ongoing global financial crisis. Chinese President Hu Jintao, Premier Wen Jiabao and Vice President Xi Jinping paid visits to several countries in Asia, Africa, Europe and Latin America during the first month of the Chinese lunar year, which lasts from Jan. 26 to Feb. 24. Visiting Chinese President Hu Jintao addresses a welcoming rally attended by people from various sectors in Dar es Salaam, Tanzania, Feb. 16, 2009 Their tours were warmly welcomed and highly praised by governments and media of the countries visited by the Chinese leaders. Meanwhile, China and the United States carried out their maiden communication after U.S. President Barack Obama took office on Jan. 20, 2009. The talks were constructive and expected to boost bilateral ties and help tackle global challenges. Chinese President Hu carried out state visits to Saudi Arabia, Mali, Senegal, Tanzania and Mauritius from Feb. 10 to 17. Visiting Chinese President Hu Jintao (L) talks with Saudi Arabian King Abdullah bin Abdul-Aziz during their meeting in Riyadh, Saudi Arabia, Feb. 10, 2009During the visits, Hu comprehensively expressed China's views and stances on ways to deal with the financial crisis, emphasizing that the international community should take note of, and make all efforts to reduce, the crisis' impact on developing countries, especially those lowest on the development ladder. He also said China would like to strengthen cooperation and take coordinated action with developing countries and the entire world community to meet current challenges. The president reached a broad consensus with African leaders on the means to further boost bilateral cooperation, steadfastly implement measures to aid Africa made at the Beijing Summit of the Forum on China-Africa Cooperation in November 2006 and deepen the new China-Africa strategic partnership. Hu made a six-fold proposal to develop China-Africa ties under the current situation, saying the Chinese have always cherished their traditional friendship with Africa and regard Africans as all-weather, trustworthy and dependable friends, and would like to be the African people's brothers and partners for ever. The leaders of Mali, Senegal, Tanzania and Mauritius said Africa-China ties are a prime example of friendly cooperation among nations, adding that Africa is willing to promote cooperation with China and boost bilateral ties.
BEIJING, Feb. 8 (Xinhua) -- China's state assets watchdog will closely watch over projects implemented by state-owned enterprises(SOEs) in the country's massive stimulus package to prevent corruption, an official said here Sunday. The State-owned Assets Supervision and Management Commission (SASAC) will strictly look into the progress and fund use of projects by SOEs directly under the central government, said the SASAC director Li Rongrong. Many projects are estimated to see over tens of millions of yuan put in, making it a more important task to fend off corruption, he said at an SOE meeting on disciplinary inspection work. China unveiled a stimulus package with a total investment of 4 trillion yuan (586 billion U.S. dollars) in November to boost domestic demand and offset the world economic slowdown. Of the total, 100 billion yuan had been allocated by the central government by the end of last year. Li said inspectors will particularly focus on projects in such sectors as power grids, telecommunications, transportation, equipment, construction and metallurgy. The SASAC will also check whether the projects cause environmental hazards, consume too much energy and resources or result in excessive capacity, said Li. A total of 4,960 Chinese officials above the county level were punished in a year ending November 2008, data show. They were involved in corruption and commercial bribes, hurting people's interests.
来源:资阳报