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GENEVA -- China has reached understanding with the United States and Mexico on their alleged trade subsidy measures, sparing a WTO panel ruling on the case, the Chinese WTO mission said here on Thursday.Chinese Ambassador Sun Zhenyu signed respective memorandums of understanding with his US and Mexican counterparts "regarding certain measures granting refunds, reductions or exemptions from taxes or other payments" at the WTO headquarters on Thursday, the mission said in a statement.In the MOUs, China made it clear to the United States and Mexico that "the policy of exemption for certain foreign-invested enterprises from payments to the State for worker allowances is no longer operative."Besides, the policy of value-added tax (VAT) refund to enterprises for the purchase of domestically produced equipment does not constitute prohibited subsidies as provided by relevant provisions of WTO agreements."Other preferential policies on income tax pertinent to the disputes have been repealed or will be repealed along with the implementation of the new Enterprise Income Tax Law of China," the statement added.According to the Chinese mission, the MOUs will be notified to the WTO as mutually acceptable solutions to the above-mentioned dispute in accordance with the Dispute Settlement Understanding of the world trade body.The United States filed the case to the WTO in February and later was joined by Mexico. The two countries alleged that China was using tax breaks and other incentives to "subsidize" its exports, which might violate WTO regulations.A WTO panel was established in August to investigate the case, following failed consultations between the three sides.But the three sides finally reached understanding on the dispute through continued discussions.

BEIJING -- American chip manufacturer Intel Corp. said here Monday that it had settled a copyright infringement dispute with China's Shenzhen Dongjin Communications Technologies Co. Ltd. after more than two years of legal battle. The two companies said in a joint statement that given their developing strategies and business operations, pursuing the lawsuit was not in the best commercial interests of each company. Intel Corp. sued Shenzhen Dongjin, a private Chinese company, in 2004 for alleged copyright infringements relating to its Inter Dialogic System Release 5.1.1 software (SR5.1.1) and demanded compensation of 7.9 million US dollars. In compensation terms it was the biggest IPR case to be heard at the Intermediate People's Court of Shenzhen, a boomtown in south China's Guangdong Province. At the request of the American multinational, the Shenzhen Intermediate People's Court seized and sealed all of the disputed products and relevant reference materials on January 20, 2005. In April 2005, Shenzhen Dongjin, through its subsidiary company in Beijing, countersued Intel for technology monopoly at the No. 1 Intermediate People's Court in Beijing. The two companies said the out-of-court settlement respected the Chinese law on IPR protection and the positive efforts made by Chinese courts. The details of the settlement were kept confidential. He Jiannan, general manager of Shenzhen Dongjin, said the settlement demonstrated the progress made by China in technology innovation, company management and IPR protection.

KUNMING - A comprehensive research and preservation facility for the germplasm of rare and endangered plants,wild animal species and microorganisms was completed on Sunday in southwest China's Yunnan Province. With an investment of 148 million yuan (US.5 million) over the past two years, the "Southwest China Germplasm Bank of Wild Species" facility was established by the Kunming Institute of Botany (KIB) with the help of the Chinese Academy of Sciences (CAS). "The bank will be a key player in China's biotech industry and a pioneer in the nation's biodiversity conservation and bioresource development strategy," Chen Zhu, vice president of CAS, said at the inauguration ceremony. According to the KIB, the bank sees itself as a leading storage facility of Asian species within 15 years of its foundation, and expects to make significant contributions to the development of the biotech industry and life science research by providing valuable resources, information and expertise. Within the next five years, the bank is expected to collect 6,450 wild species, 4,000 of which will be plant seed species. Within 15 years, its collection will reach 19,000 species. The bank comprises a seed section, an in-vitro micro-propagation unit, a microorganism bank, an animal germplasm bank, a DNA bank, an information center and a garden. Stretching across an undulating landscape and climatic zones ranging from the tropical to the frigid, Yunnan is home to a multitude of plant species linked together by a complex network of phylogenetic relations, and accounts for more than 50 percent of China's plant diversity.

CHENGDU - About 3.8 trillion cubic meters of natural gas deposits have been discovered in southwest China's Sichuan Basin, with verified exploitable reserves topping 600 billion cubic meters. The reserves were discovered in Dazhou, a gas-rich city in Sichuan Province. By 2010, the newly found deposits will raise the city's gas output to 24 billion cubic meters and sulphur to more than 4.3 million tons, according to a Dazhou official at the on-going Western China International Economy-Trade Fair on Saturday. China National Petroleum Corporation (CNPC), the country's biggest oil and gas producer, and Sinopec Corporation, China's largest refiner, plan to build five purification plants in Dazhou and are expected to purify a total of 74 million cubic meters of natural gas a day by 2010. Dazhou City, located in eastern Sichuan, covers an area of 16,600 square kilometers with a population of 6.46 million.

WASHINGTON -- The special US envoy on Sudan affairs said Wednesday that important progress has been made toward peace talks on Darfur and China plays a "constructive" role in facilitating such progress."I am very happy with the role the Chinese are playing," Andrew Natsios said in a speech at the Center for Strategic and International Studies, a Washington-based think tank."It is a constructive role," Natsios said. "I think the Chinese are like a locomotive that is speeding up."With mediation by China, he said, the Sudanese government has accepted a UN Security Council resolution adopted in July to authorize a hybrid UN-African Union peacekeeping force for the Darfur region.He said the major obstacles to the peace talks now come from the rebel groups rather than the Sudanese government.In a related development, China's Special Representative on African Affairs Liu Guijin said in Beijing on Tuesday that China will send a military liaison officer to Sudan's Darfur.Liu, who has just wrapped up a seven-day visit to the United States and the United Nations, said China has informed the UN of its decision.China also pledged to send a 315-member multi-functional engineering unit to Darfur in early October, which would be the first batch of UN-AU peacekeepers in place, and China will stick to its commitment, Liu said.Liu reiterated China's constructive and unique role in finding a solution to the Darfur issue, saying China has provided much aid and help with regard to the reconstruction and development of Darfur."The US and UN both hold positive views on China's role in resolving the Darfur issue, and hope China will play a bigger role in this regard," said Liu.