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BEIJING, Aug. 21 -- China Mobile Thursday reported its first drop in net profit since 1999 because of rising competition from rivals China Telecom and China Unicom and its weak 3G performance. The world's biggest telco posted a net profit of 30.1 billion yuan (US.42 billion) in the second quarter, compared with 30.6 billion yuan a year ago. Analysts had previously forecast a net profit of 31.4 billion yuan for the period. "A macro-economic slowdown, a rising mobile communications penetration rate and changes in the competitive environment of the telecommunications industry in China have posed challenges to the development of the business in the first half," China Mobile said in a statement. In the first six months, China Mobile posted a net profit of 55.3 billion yuan, a 1.4 percent annual growth. Its revenue totaled 212.9 billion yuan, an 8.9 percent rise from a year ago. China Mobile's monthly average revenue per user, a key index of the industry to monitor a telco's profitability, was 75 yuan in the first half, about 10 percent less than a year ago. China Mobile added 35.87 million users in the first half to total 493 million by the end of June. The telco had 957,000 3G users since it started a trial 3G service in April. In the first half, China Mobile took 66 percent of the total new additional mobile users, compared with 85 percent a year ago, due to the "changed competitive landscape," the company said. "The gap between China Mobile and other rivals will become narrow but it will still dominate the market for about two years," said Wu Wenzhao, a telecommunications analyst of Analysys International. In January, China issued 3G licenses to China Mobile, China Unicom and China Telecom.
BEIJING, Sept. 4 (Xinhua) -- China's government is adjusting its policies on imported technological equipment with the purpose of boosting domestic innovation and greater industrial restructuring and upgrading. Key components and raw materials imported by domestic enterprises for manufacturing major technological equipment and products are exempted from import tariffs and value-added tax (VAT) as of July 1 this year, according to a joint communique issued by the Ministry of Finance and five other ministries Friday. Tariff exemption for imported complete set of machinery and equipment will be revoked, according to the communique. To ensure smooth transition, preferential policies for items which currently can not be wholly supplied domestically, if it is proved so after examination, will be phased out gradually. Major State-backed key technological equipment includes clean energy power generating systems and nuclear power generating units of above a million kilowatts. China's central government in March announced expenditure of 20 billion yuan (2.94 billion U.S. dollars) for this year, from a 908 billion yuan public sector budget, to help enterprises upgrade technology, energy efficiency and innovation. It also unveiled a three-year plan in May to stimulate equipment-manufacturing industry, which lacks ability to innovate and had underdeveloped technology. But experts said lack of funding and cooperation among research institutes still restrain China's technological transition.

URUMQI, July 22 (Xinhua) -- A key expressway in northwest China's Xinjiang Uygur Autonomous Region began construction on Wednesday in a move to improve the region's road network and serve its economic development. The 135-km expressway will link Kuytun City to Karamay City. The project, funded by the central government and Xinjiang regional government, will cost 3.87 billion yuan (about 567 million U.S. dollars). The road is bidirectional with four lanes. It will be completed and put into use in November 2011. Dai Gongxing, vice chairman of the Xinjiang regional government, said at the groundbreaking ceremony in Kuytun that the expressway, also part of the national expressway network, would improve the regional transport and promote local economic development.
RIGA, Sept. 1 (Xinhua) -- Chinese Vice Premier Hui Liangyu met with Latvian President Valdis Zatlers and Parliament Speaker Gundars Daudze here on Tuesday. In his meeting with Zatlers, Hui said the China-Latvia relations have been developing smoothly in recent years. The two sides have maintained high-level contacts and strengthened mutual political trust. There has also been remarkable progress in economic and trade cooperation and people-to-people contacts. President Zatlers visited China last year and reached important consensus with Chinese President Hu Jintao on the development of bilateral relations, said Hui. The current visit is aimed at implementing the consensus reached last year, deepening friendship and promoting cooperation, he said. The two sides should work together in face of the current global financial crisis, and should also look even farther and further promote cooperation, he said. Chinese Vice Premier Hui Liangyu (2nd R) meets with Latvian President Valdis Zatlers (3rd L) in Riga, capital of Latvia, Sept. 1, 2009. Hui expressed the hope that the two countries could promote exchanges between governments and enterprises, and explore new ways to strengthen economic and trade cooperation, so as to promote bilateral relations and bring benefits to the two peoples. Zatlers extended congratulations on the 60th founding anniversary of the People's Republic of China, which falls on Oct.1 this year. China's development is an opportunity for Latvia, he said. Latvia sees China as an important strategic partner and is willing to work with China to promote political contacts and expand cooperation in areas like economy and trade, land and sea transportation, and medicine. In a separate meeting, Hui and Daudze spoke highly of the current bilateral relations and agreed to promote contacts between the two legislatures so that the two countries could share their experience in governance, thus contributing to the promotion of mutual understanding between the two peoples and the further improvement of bilateral relations.
BEIJING, Aug. 20 (Xinhua) -- China on Thursday called for more efforts to boost economic growth in its western regions. Premier Wen Jiabao chaired a meeting of the leading group under the State Council for the development of China's western regions. Vice Premier Li Keqiang also attended the meeting. The meeting discussed and passed a guideline on maintaining stable and fast economic growth in the western regions amid the global economic downturn. The government would carry on with its policy to develop the western regions as the policy proved effective in boosting economic and social progresses there in the 10 years since its launch. China on Thursday called for more efforts to boost economic growth in its western regions. Premier Wen Jiabao chaired a meeting of the leading group under the State Council for the development of China's western regions More funds would be put into the areas for infrastructure construction including railways, roads, airports and water conservation projects. The government would stress environmental protection in the areas and further promote the "grain for green project", a project to prevent sand storms and protect sources of the three key rivers that start in Qinghai Province. China would make more efforts to upgrade the industrial structure in the western regions and boost industries with advantages there. The government would speed up the development of social causes to improve people's livelihoods. It would work to add more job opportunities, improve people's living conditions and upgrade education and medical services. The meeting also stressed efforts to help rebuild the areas destroyed by the strong earthquake in May 2008. China on Thursday called for more efforts to boost economic growth in its western regions. Premier Wen Jiabao chaired a meeting of the leading group under the State Council for the development of China's western regions
来源:资阳报