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BEIJING, March 5 (Xinhua) -- Chinese Premier Wen Jiabao Thursday called on the nation to strengthen "conviction for victory" as he unveiled an unprecedented stimulus package to shore up economic growth amid global downturn. In a work report to the National People's Congress (NPC), the country's parliament, Wen said China is facing "unprecedented difficulties and challenges" as economic growth slows, employment pressure mounts and social uncertainties increase in 2009, the most difficult year since the new millennium. PREMIER'S ECONOMICS China's economy cooled to a seven-year low of 9 percent last year, and broke a five-year streak of double-digit expansion, as the global financial crisis took its toll on the world's fastest growing economy. The country, however, is "able to achieve" an economic growth at about 8 percent as long as right policies and appropriate measures are adopted and implemented, Wen said. Chinese Premier Wen Jiabao delivers a government work report during the opening meeting of the Second Session of the 11th National People's Congress (NPC) at the Great Hall of the People in Beijing, capital of China, March 5, 2009In his report, Wen outlined an aggressive stimulus package, including huge government investment, tax reform, industrial restructuring, scientific innovation, social welfare and promoting employment. In addition to a 4-trillion yuan (585.5 billion U.S. dollars) stimulus package that was announced in November, the premier also proposed a budgeted fiscal deficit of 950 billion yuan (139 billion U.S. dollars) for 2009, a record high in six decades and nearly three times over the last record of 319.8 billion yuan set in 2003. The deficit accounted for less than 3 percent of the gross domestic product (GDP), nearly surpassing an internationally accepted risky line. Wen said increasing government spending is the most active, direct and efficient way to expand domestic demand, while economists believe China's 2-trillion U.S. dollar foreign reserves, current-account surplus and budget surplus offers the government lots of room to do so. Other key economic and social targets included creating more than 9 million jobs in the city, controlling urban registered unemployment rate under 4.6 percent and keeping the rise of Consumer Price Index (CPI) at about 4 percent. EXPECTATIONS OF A MIGRANT WORKER AND MORE While nearly 3,000 lawmakers convened at the Great Hall of the People in the center of Beijing, Zhang You, a migrant worker from central Anhui Province who was waiting in his rented room for a job opportunity in the outskirts of the capital, also watched Wen's nationally televised speech, though the Premier's economics might be beyond his imagination. "I didn't quite understand what those figures meant," he said. "But I was impressed by Premier Wen's vow to expand social security for migrant workers and help us find jobs," the 30-year-old man said. "I am happy about that." Zhang, a painter, said he has had no work to do for months. "I guess it's because fewer people are buying houses," he said. China's real estate sector was also hit by the international financial crisis with fewer people buying houses. But Zhang said he believes he will soon be able to find a job. "I feel the government is trying hard to overcome the difficulties. This kind of situation won't last long." "I hope the economy will get better. My whole family is depending on me," said Zhang, one of the 20 million migrant workers who have lost jobs following the financial crisis. In addition to millions of migrant workers seeking jobs in the cities, another 6.1 million college students are due to graduate this year, worsening the country's unemployment woes. Announcing a 42-billion-yuan central government investment to boost job opportunities, Wen said in his report "the government will do everything in its power to stimulate employment." He said the government will make full use of the role of the service sector, labor-intensive industries, small and medium-sized enterprises, and the non-public sector of the economy in creating jobs, he said. Hao Ruyu, vice president of the Capital University of Economics and Business, said to maintain an 8 percent growth rate is "vital" to the Chinese economy and the country's stability. "One percentage point growth could create 800,000 to 1 million jobs," said Hao, vice chairman of the NPC Financial and Economic Affairs Committee. Despite worsening world economy, economists are optimistic about China's economic growth as previous stimulus measures have started to show initial effects. Economist Li Yining told Xinhua that he believes China's economic growth this year could reach 8 percent, or even higher. The Chinese economy is also very likely to recover before other major economies, even though the world economy is still shrouded in uncertainty, said Li, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), the nation's top political advisory body. "The economic slowdown is beginning to bottom out, and the economy is bound to rebound on huge government investment," he said. According to a survey of factories issued Monday by the brokerage CLSA, China's manufacturing activity contracted for a seventh consecutive month in February, but at a slower rate than previous months. INVESTMENT FOR A HARMONIOUS SOCIETY While explaining the stimulus plan, Wen said the government will "give top priority to ensuring people's wellbeing and promote social harmony." He said a total of 908 billion yuan of the central government investment this year will go to projects aiming at improving people's life. Those projects covered low-income housing, education, health care, culture, environmental protection, and reconstruction in regions affected by the May 12 earthquake in Sichuan Province. As part of the efforts to shore up domestic demand, Wen said China will increase investment to improve China's social security network, whose low coverage has long been blamed for the country's high saving rate. He said the central government plans to spend 293 billion yuan on the social safety net this year, up 17.6 percent or 43.9 billion yuan over the estimated figure for last year. The money will be used to fund social welfare programs, including pension, medical insurance, unemployment insurance and living allowances to low-income groups. Wen also promised that his government will improve efficiency and continue to combat corruption. "We must discharge our duties with great diligence and, through our actions and achievements, build a government that is for the people and is pragmatic, clean, efficient to satisfy people's needs and win their trust," he said. CHINA IMPETUS LIMITED? As the world's fastest expanding economy, China's policy making has captured international attention since the world was hit by the financial turmoil. Before Wen delivered his report, U.S. stocks broke a five-day losing streak with the Dow Jones industrial average rising 149.82, or 2.2 percent, to 6,875.84 on Wednesday. Some analysts said expectations on China's economic stimulus package might have contributed to the stock jump. But Wang Xiaoguang, a Beijing-based economist, said such an influence is very "limited." Wang said China's stimulus package might help store up some investors' confidence in world economy, but the recovery of the world depends on both China and the United States. China's economic growth could help cushion the blows of world economic downturn, Wang said. "But if the U.S. economy continued to worsen, China alone could not revive the world," he said.
BEIJING, Feb. 20 (Xinhua) -- China's lenders have been urged to be flexible and innovative concerning loan repayment from smaller firms. The China Banking Regulatory Commission (CBRC) said Friday it is trying to help small firms facing financing difficulties by extending the loan period. According to a notice sent to various lenders, banks and small firms could stipulate such terms in loan contracts which would allow the borrower to file a new request for a credit checkup before the loan is due. If no problem is found, the borrower could directly extend the loan period without starting all over again by signing a new contract. Extra conditions that come along with the extended loan period could be worked out by both sides through negotiations, the commission said. However, the commission did not define which small firms would be entitled to such favorable policies.
BEIJING, Feb. 19 (Xinhua) -- China on Thursday again lodged urgent representations to the Russian Minister Counsellor to China in regards to the sinking of a Chinese cargo ship in Russian waters. The Sierra Leone-flagged vessel named "New Star" sank off the waters near Russia's far-eastern port of Vladivostok on Sunday. Seven Chinese crew members were still missing. China paid great attention to media reports that the ship sank after a Russian Coast Guard cruiser fired at it, said Foreign Ministry spokeswoman Jiang Yu in a news release. Jiang said China had urged the Russian side to spare no efforts to help search for the missing crew members and make thorough investigations to find out the causes of the incident as soon as possible. The Chinese embassy in Russia and consulate general in Khabarovsk also made representations to Russia at the same time, Jiang noted. "Russia attached great importance to China's concern," said Jiang, adding that relevant Russian department is investigating the conduct of law enforcement agencies involved in the incident and will inform China of the results in time.
BEIJING, Feb. 28 (Xinhua) -- Chinese Premier Wen Jiabao jumped in his first ever online chat on Saturday afternoon, facing questions from nearly 300,000 netizens and mobile phone users ranging from unemployment, wealth gap, social justice to democracy. "I don't expect myself to answer every question well, but I am here with a sincere heart and speak honestly," Wen said during the two-hour-long chat jointly run by the central government web site www.gov.cn and the Xinhua News Agency web site www.xinhuanet.com . Chinese Premier Wen Jiabao(R2) speaks while visiting staff members of the Xinhua News Agency website, after his chat with Internet surfers in Beijing, China, Feb. 28, 2009. Wen Jiabao held an online chat with netizens jointly hosted by the central government website (www.gov.cn) and the Xinhua News Agency website (www.xinhuanet.com) on Saturday. The chat, second of its kind for a high-ranking Chinese official, came several days before the Premier is to deliver his annual work report at a meeting of the national legislature on March 5. President Hu Jintao had a brief Q&A with netizens at the web site of People's Daily last June. It seems Wen, who surfs the Internet almost every day and sometimes spends as long as one hour on the Internet, is aware of the toughness of the chat. He started the chat speaking of the approximately half million questions directed to him on local Internet forums, lately opened for the public to utter their advice ahead of the legislature meeting. "I am deeply aware of the raft of issues that need to be addressed in a country as vast as China and I am deeply aware of the difficulty and heavy responsibility a Chinese Premier has to face," he said. Chinese Premier Wen Jiabao holds an online chat with netizens jointly hosted by the central government website and Xinhua website in Beijing, China, Feb. 28, 2009. ECONOMIC HARDSHIP The first heavy barrage came from the concern over lingering economic slowdown which has already caused more than 20 million rural migrant workers jobless and terminated the superiority complex previously prevalent among the country's millions of college graduates on the job market. In an obvious effort to elevate public confidence without giving false hope, Premier Wen used careful wording to evaluate the effect of the four-trillion-yuan stimulus package he endorsed last November. "Signs in certain areas and fields pointed to a turnaround. Some key indicators showed the economic situation has somewhat turned better. But those were just temporary indices and couldn't be fully compared with the past figures," he said. "We must fully realize we are facing a long-term and arduous task and strengthen confidence in the face of the crisis and be ready to take firmer and stronger actions when necessary." Wen gave his personal appreciation to the "brothers" of rural migrant workers for their contribution to China's prosperity and their understanding in times of difficulty. "You have born the first brunt of the financial crisis, but you didn't hold much grudge against the government but instead showed your understanding, with some going back home silently for farming and others dashing around for jobs," Wen said. "I thank you!" The government would offer vocational training and tax privileges for rural migrant workers to start their own business, he said. Wen didn't use the occasion for a national consumption pitch, although many economists agreed that raising consumption would be the only way to rebalance and sustain the economy. "Of course we wish the wealthy could spend money boldly, but what we think essential is to increase the income of people from all walks of life. In that case, consumption would have a much more solid founding," he said. Hand-picking a complaint over financing difficulty from netizen Shen Yuefang who ran a small-scale business in Zhejiang, Wen harshly blamed commercial banks, urging them to step up the implementation of state policies and lend more to small and medium-sized companies, especially private ones. "I always said that economists, entrepreneurs and bankers must have moral blood. That is to say whenever the country is in trouble, we should help smaller companies and optimize the system. This is real action to share in the woes of the nation. Every banker should do this," he said. GOOD SYSTEM MATTERS MORE Affectionately named "Baobao" (the Chinese for baby) by his fans, the 67-year-old has become one of the nation's most popular figures after making swift appearance at disaster sites when a devastating earthquake shocked the country last May. During his visit to Tianjin on Feb. 16 this year, Wen came cross weeping mother Wang Zhihua who couldn't afford the treatment for his seriously ill son. Wen personally donated 10,000 yuan and arranged for the two-year-old suffering leukaemia from the rural area in Zhangjiakou of Hebei Province to get hospitalized in the Beijing Children's Hospital. This philanthropic act however triggered public sighs over the country's inadequate medical system. "I noticed the harsh criticism which says good system matters more than good Premier," Wen said, responding to a question on the treatment of seriously ill children. "Being the Premier, I need to think about how to optimize our medical system and have seriously ill children treated....We have already started to work in this direction. But our efforts is far from enough." China currently has more than four million leukemic children. Treatment for each would cost more than 100,000 yuan. But no medical insurance in China would allow reimbursement for such large medical bills, Wen acknowledged. He mentioned five steps the government will take, including expanding the coverage of insurance and establishing a basic medicine system with price ceilings. The State Council, or the Cabinet, has lately passed a medical reform plan involving a government input of 850 billion yuan (123 billion U.S. dollars) by 2011 to provide universal medical service to the country's 1.3 billion population. "Health care reform is not easy. Our determination to push forward the reform shows that the government cares about the health of the public," Wen said. "Let me assure you that a good Premier would push forward the establishment of a good system," he said. HEARTY TALK Bombarded by questions over the widening income gap and government corruption, Wen said that in a society where fairness and justice prevail, the public should be able to share the fruits of reform. Citing the Theory of Moral Sentiments by philosopher Adam Smith, Wen said that society would be unstable if the wealth was long concentrated in the hands of a small number of people while the majority was stuck in poverty. "However, the needy would have no way to shake off poverty when the society was static. So only through development and progress can we tackle such difficulty from the root," he said. "To uphold democracy and have the people truly in charge, we must rely on no individuals but a sound system to secure top-to-bottom communications for the government to listen to the voices of the masses," he said. Asked why he didn't dodge when German student Martin Jahnke blew a whistle and hurled a sports shoe at him at the concert hall of Cambridge University on Feb. 2 during his speech, Wen admitted his eyes had been blinded by the spotlight. "I didn't know indeed what has come to me. But I have a conviction even it was a dangerous article, I wouldn't move a bit because the first thing that came cross my mind was to safeguard the national dignity," he said. Wen asked the moderator to prolong the chat more than once and addressed 29 more questions.
BEIJING, March 15 (Xinhua) -- China's advertisement sector generated 189.96 billion yuan (27.78 billion U.S. dollars) of revenue in 2008, up 9.11 percent over the previous year, China's State Administration for Industry and Commerce (SAIC) said Sunday. The revenue from TV commercials reached 50.15 billion yuan, an increase of 13.22 percent over the previous year. It accounted for26.4 percent of the total, the largest share of the market. Income from newspaper advertisements rose 6.36 percent from a year ago to 34.27 billion yuan in 2008. The number of foreign-funded advertisement companies in China soared 27.73 percent from the previous year to 737 by the end of 2008, which accounted for 0.4 percent of the total advertisement firms across the country, according to the SAIC.