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BEIJING, May 5 -- The economy is likely to expand 7 percent in the second quarter - up from the first quarter's 6.1 percent - even as it confronts the painful prospect of shedding industrial overcapacity, a top government think tank said Monday. "Economic growth will pick up in the second quarter as the government's stimulus measures gradually take effect," the State Information Center (SIC) forecast. "There has been preliminary success in arresting the economy's downward trend," it said, but did not mention any fallout from the global H1N1 flu alert. But Zhu Baoliang, an SIC economist and one of the authors of the SIC report, said the economy will only be slightly affected by the H1N1 flu. Annualized GDP growth sank to a decade's low in the first quarter, largely because of a collapse in export demand. But analysts said the economy might have bottomed out since then as latest economic figures are increasingly upbeat. The CLSA China Purchasing Managers Index (PMI), a gauge of manufacturing activity, rose to 50.1 in April, the first time it has been above 50 since last August, CLSA Asia-Pacific Markets said yesterday. A PMI reading above 50 indicates an expansion of the manufacturing sector, while a reading below 50 signals a contraction. Also, the PMI index compiled by the Federation of Logistics and Purchasing rose for the fifth straight month in April to 53.5 percent, up 1.1 percentage points from a month earlier. The positive economic signs sent stock markets up across Asia, with the mainland's Shanghai Composite Index rising 3.3 percent and Hong Kong's Hang Seng index 5.5 percent. "The Chinese government has been extremely successful in stimulating investment," said Eric Fishwick, CLSA head of economic research. "We hope that firmer domestic demand, as government spending gains traction, will keep the PMI above 50 in the months to come." The World Bank said in a report in early April that the Chinese economy is expected to bottom out by the middle of 2009. It also forecast China's economic growth at 6.5 percent for the year. The International Monetary Fund also forecast last month that growth in China is expected to slow to about 6.5 percent this year. Consumer spending held fast over the past months, despite looming unemployment pressure. About 2.68 million vehicles were sold in the first quarter, making the nation the world's largest auto market during the period. Housing sales surged 23.1 percent by value while retail sales rose 15.9 percent in the first quarter, 3.6 percentage points higher than the same period a year earlier. "Based on the clear uptrend in recent economic activity we believe the worst is already behind China in terms of economic growth," Sun Mingchun, chief China economist of Nomura International, wrote in a research note. Sun said China would achieve its 8 percent growth target this year, with a V-shaped growth trajectory. But some analysts argue that the figures could be volatile and the economy has to deal with the structural problem of overcapacity. "It's still too early to say the economy is experiencing a real recovery," said Zhu, the SIC economist. "Over the past months, local enterprises have been running down their inventories. Now they have to reduce overcapacity."
BEIJING, May 26 (Xinhua) -- The State Council, China's Cabinet, has approved a decision to impose harsh criminal and disciplinary penalties on 169 people held responsible for five major work-related accidents over the past two years, the State Administration of Work Safety (SAWS) announced Tuesday. SAWS said cases involving 131 people had been handed over to judicial departments for criminal prosecution. The five accidents included a mine blast in Linfen in north China's Shanxi Province that killed 105 on Dec. 5, 2007, a train collision in east China on April 28 last year that claimed 72 lives, and a landslide at an unlicensed iron ore tailings facility, also in Linfen, that killed 277 people. These five accidents are profiled below. COAL MINE BLAST, HONGTONG COUNTY, SHANXI PROVINCE, 2007 The blast occurred at 11:15 p.m. on Dec. 5 at the Xinyao Coal Mine, killing 105 miners and injuring 18 others. Losses were estimated at 42.75 million yuan (about 6 million U.S. dollars). Authorities said 78 people bore some responsibility for the accident, and 39 were referred to judicial bodies for criminal prosecution. Wang Donghai, the ultimate owner of the mine, and Wang Hongliang, legal representative, were sentenced to life in prison. Miao Yuanli, former vice mayor of Linfen, received a 14-year sentence. The other 39 received internal disciplinary penalties. Wang Guozheng, director of Shanxi Provincial Construction Department, and Jin Shanzhong, then vice governor of Shanxi Province, were given severe inner party warnings. Li Tiantai, deputy party chief and mayor of Linfen, was given a severe inner party warning and demoted. Ruizhiyuan Coal Mining Co. Ltd., which owned the coal mine, was fined 185.2 million yuan and closed. TRAIN COLLISION, SHANDONG PROVINCE, 2008 A high-speed train from Beijing to the coastal city of Qingdao in Shandong Province derailed and struck another train in Zibo's Zhoucun District on April 28, 2008, leaving 72 dead and another 416 injured. It was the worst train accident in a decade. Losses were estimated at 41.92 million yuan. An investigation showed the train was running at 131 kilometers per hour at the time of the accident, while the speed limit of that section was 80 km/hr. Authorities determined that 37 people bore responsibility for the accident. Six people, including Guo Jiguang, vice executive director of the Jinan Railway Bureau, were referred to judicial departments for criminal prosecution. Thirty-one people received inner party disciplinary punishment or administrative punishment. Chen Gong, head of the Jinan Railway Bureau, was dismissed. Chai Tiemin, then the Party chief of the bureau, was dismissed. Hu Yadong, vice minister of the Railway Ministry, had a serious demerit entered on his record. Liu Zhijun, railway minister, had a demerit entered on his record. COAL MINE BLAST, SHANXI PROVINCE, 2008 On June 13, 2008, an explosion occurred in a colliery of the Anxin Coal Mining Co. Ltd. in Xiaoyi City, Shanxin Province, which killed 35 people and injured 12 others. One person has never been found. Losses totaled 12.91 million yuan. Illegal homemade explosives concealed in the colliery tunnel ignited on their own and triggered the blast, according to investigators. Fifty people were held responsible for the accident, and 26, including Tian Yun, head of the mine and legal representative of Anxin company, were referred to judicial departments for criminal prosecution. Twenty-four people, including Zhang Zhongsheng, vice mayor of Luliang City, and Zhang Xuguang, mayor of Xiaoyi City, received inner party disciplinary or administrative punishment. The company was fined 38.46 million yuan and all its illegal gains were confiscated. The company's business license was revoked and it was ordered to close. LANDSLIDE, SHANXI PROVINCE, 2008 The collapse of an unlicensed iron ore tailing pond triggered a massive landslide on Sept. 8, 2008 in Xiangfen county of the coal-rich Shanxi Province. The landslide buried an outdoor market near a village of more than 1,000 residents, killing 277 people and injuring 33. Four people were never found. Losses were put at 96.19 million yuan. Authorities said 113 people had responsibility for the accident. Among those, 51 faced criminal charges and 62 received inner party disciplinary or administrative punishments. Among those facing charges were Zhang Peiliang, board chairman of the Xinta Mining Ltd. Co., or the owner of the mine; Kang Haiyin, Communist Party chief of Xiangfen County; Li Xuejun, head of Xiangfen County; Liu Shuyong, chief engineer of Shanxi Provincial Land and Resources Bureau, and Su Baosheng, deputy head of Shanxi Provincial Work Safety Supervision Administration. Xia Zhengui, secretary of Linfen city's Party committee, was given an inner-party penalty. Liu Zhijie, Linfen's then mayor, and Zhou Jie, then vice mayor of Linfen, were dismissed. Zhang Genhu, head of Shanxi Provincial Work Safety Supervision Administration, had an internal demerit entered in his record. MINE FIRE IN HEILONGJIANG PROVINCE, 2008 The fire on Sept. 20, 2008 at Fuhua Coal Mine in Hegang City killed 31 people and caused losses of 15.65 million yuan. The accident was determined to have been caused by the spontaneous combustion of coal, but 22 people were held responsible for bad management. Nine people, including Wang Qingyun, an investor in Fuhua Mining Co., Ltd., faced criminal charges. Thirteen people received disciplinary penalties. Wang Rui, then vice mayor of Hegang, was included, among others. The company's business license was suspended and it was forced to close.

DAMASCUS, June 29 (Xinhua) -- China's new special envoy to the Middle East Wu Sike said on Monday in an interview with Xinhua that the concerning parties of the Mideast peace process should hold confidence to make progress. Wu, who arrived in Damascus on Monday, starting the fifth leg of his first visit to the Middle East as China's new special envoy. After meeting with Syrian Foreign Minister Walid Mualem and Vice President Faruk Shareh, he told Xinhua that Syria and China has enjoyed good bilateral relationships and Syria appreciates China's role in the region and the Mideast peace process. China's Mideast envoy Wu Sike (L) meets with Syrian Vice President Faruk al-Shareh in Damascus, Syria, June 29, 2009."It is necessary to enhance the coordination and communication between two countries," said Wu. He also stressed that just and comprehensive Mideast peace could only be achieved by abiding by the relevant international resolutions and the land-for-peace principles. "We held good talks with Minister Mualem on the latest developments in the region," the Chinese official said, adding "we support the return of the occupied Golan heights and the establishment of a viable Palestine state with independent sovereignty." Wu, former Chinese ambassador to Egypt, was appointed as the special envoy in March this year to replace Sun Bigan. He has been director of the Department of West Asian and North African Affairs of the Foreign Ministry, ambassador to Saudi Arabia and Egypt, and also the first Chinese plenipotentiary to the Arab League. Visiting China's Mideast envoy Wu Sike (L) meets with Syrian Foreign Minister Walid al-Muallem in Damascus, Syria, June 29, 2009.Before visiting Syria, Wu has already visited Egypt, the Palestinian territories, Israel and Jordan. He told reporters that although some positive signs has turned up in the region, confidence is still needed, because "we have a long and tough way ahead to finally reach a just and comprehensive peace in the region." During his first stop in Egypt on June 21, Wu met with Egyptian Foreign Minister Ahmed Abu Gheit, and he also had talks with the Cairo-based Arab League Secretary General Amr Moussa. The Chinese official told Egyptian officials that "Negotiation is the only and the best way to solve the conflicts in the region and China will support all the efforts in this regard." After holding dialogues with Arab and Israeli officials, Wu noted that Arab world has seen the positive factors in Israeli Prime Minister Benjamin Netanyahu's recent foreign policy speech, which conditionally accepted the two state solution for the first time. However, the Arab world widely opposed the preconditions of establishing a Palestinian state in Netanyahu's speech, highlighting the Palestinian state is unable to exist with those conditions, said Wu. "Israel could not achieve its ultimate security until Israel and the Palestinians realize their peaceful coexistence," said the Chinese envoy, noting that "I have urged the Israeli leaders and politicians to accept the two state solution, stop establishing settlements and negotiate with Syria and Lebanon with concerning issues." Meanwhile, the Chinese envoy, who is also scheduled to visit Lebanon and Russia, stressed that China is willing to support with all effort to make peace in the Middle East. "Both Arab world and Israel are waiting for the other side to make a substantial step, therefore the international community needs to push forward the process," said Wu.
BEIJING, June 10 (Xinhua) -- Chinese Vice Premier Wang Qishan met with visiting chairman of the U.S. Economic Recovery Advisory Board Paul Volcker here Wednesday when they saw eye-to-eye on stepping up dialogue and cooperation. During the meeting, they agreed to make concerted efforts to develop the Sino-American "positive, cooperative and comprehensive relationship for the 21st century", which Chinese President Hu Jintao and his U.S. counterpart Barack Obama agreed to build during their meeting in London in April. Chinese Vice Premier Wang Qishan (R) meets with Paul Volcker (L), chairman of the U.S. Economic Recovery Advisory Board, during their meeting in Beijing, capital of China, on June 10, 2009. They also exchanged views on the current global economic and financial situation, and both of them acknowledged that economies of the two countries are increasingly interdependent. Volcker, who took office in February as head of the newly formed organization, has served as Chairman of the Federal Reserve under President Jimmy Carter and Ronald Reagan's administrations. The veteran central banker reportedly accomplished to tame raging inflation in the 1980s by raising interest rates and restricting the money supply. China and the United States are recently keeping close communication on issues of common concerns. Speaker of the U.S. House of Representatives Nancy Pelosi visited China in late May. Following her heels, delegations of U.S. congress, Treasury Secretary Timothy Geithner and several other senior U.S. officials also paid visits to China, to seek cooperation with China in fields such as climate change and combating financial crisis.
MADRID, June 19 (Xinhua) -- Senior official of the Communist Party of China (CPC) He Guoqiang met with leaders of Spain's Popular Party (PP), a major opposition party in the country's parliament, and Spanish Communist Party (PCE) on Tuesday. While meeting with PP President Mariano Rajoy, He, member of the Standing Committee of the Political Bureau of the CPC Central Committee, said PP was an important political force in Spain and made positive contribution to the growth of China-Spain ties. He said China appreciated PP's efforts to building China-Spain comprehensive strategic partnership, which was established in 2005when Chinese president Hu Jintao visited Madrid. He, also secretary of the CPC's Central Commission for Discipline Inspection, said the CPC attached great importance to its exchange with the PP and would like to increase party-to-party contacts, enhance mutual understanding between the two peoples and promote a long-term and steady growth of bilateral ties. Saying China was a country with a promising future, Rajoy hailed his party's communication with the CPC as very helpful. Rajoy briefed He on the recent European Parliament election, which took place in early June in 27 member states of European Union (EU), and the latest development of the European integration. Rajoy also gave He an analysis of how the global financial crisis took a toll on Spain and the world. In return, He introduced the impact of the crisis on China's economy and finance as well as the country's responsive measures and their effects. In another meeting with PCE General Secretary Francisco Frutos, He said PEC played an important role in safeguarding Spain's political democracy, social progress and laborers' rights. He said PCE made unremitting efforts to exploring a socialist path that fits Spain's reality. He reviewed the long-standing friendly exchanges between the CPC and the PCE, which He said worked for the development of country-to-country ties. Citing the CPC's great importance on ties with the PCE, He said the CPC would like to deepen party-to-party friendly cooperation for the interests of both countries and their peoples. He said the CPC's pursuit of a socialism path with the Chinese characteristics was the foremost experience in the party's rule of country over the last six decades. Frutos said the PCE and the CPC had some ideals in common, thus their exchange of ideas and friendly cooperation would be significant for both parties' growth. China's anti-graft chief arrived in Madrid on Monday after concluding an Egypt tour. The fortnight visit will also take him to Jordan and Mongolia.
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