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Viruses wreaked havoc on at least 1 million personal computers during the weeklong National Day holiday, according to Jiangmin Co, a leading Chinese antivirus company.The company's monitoring system detected that more than 118,000 computers crashed on October 6 alone."Viruses have been extremely active during the long vacation because more people chose to stay at home and surf the Internet, shopping online or playing online games," He Gongdao, an antivirus expert at Jiangmin, said on Monday."More than 24,000 types of viruses were detected during the week," he said.He said computer users should be more aware of viruses that could be passed on through movable disks.Another antivirus company, Kingsoft, alerted the online community to a new virus it dubbed the "ultimate killer to antivirus software".The virus, a kind of Trojan, is capable of hijacking all kinds of antivirus software when it successfully attacks a computer."It will also automatically search the keywords, including 'antivirus, Kingsoft and Kaspersky', and coercively close the programs, Li Tiejun, an antivirus software engineer of Kingsoft, said."The virus has been supported and spread by a group of people who have developed a systematic and standardized business operation to make profit," Li said. Virus controllers could detect the IP addresses of each computer, he added.The new virus, which affected about 40,000 computers a day, will remain a critical threat to many computer users even after the holiday, Li said.According to the latest survey conducted by the Ministry of Public Security, China has encountered a rising Internet security problem over the past three years, mainly triggered by a growing number of profit-driven computer virus writers, hackers and illegal traders.Some 65.7 percent of 15,000 companies polled had suffered Internet security problems from May last year to May this year, 11.7 percentage points higher than before.

BEIJING -- China will gradually scrap restrictions on the destination, stock ownership and business scope of foreign investment in the service sector, a senior economic planner said in Beijing on Saturday.Zhang Mao, vice minister of the National Development and Reform Commission (NDRC), said the country would stick to its opening-up policy and promote a "quantity-to-quality transformation in attracting foreign investment".He added existing restrictions on foreign investment in key industries concerning China's national security and its citizens livelihood remained unchanged."The point (of the transformation) is to absorb advanced technologies and management skills from foreign countries," he said. "Foreign investment companies are expected play a positive role in this regard."Speaking at a multinational CEO roundtable on Saturday, he said foreign investment would be encouraged to enter high-tech, equipment and new material manufacturing and logistics businesses. He added the central and western hinterlands were open for foreign investment with more incentives.But Zhang stressed that foreign investors were restricted from setting up businesses for export only in China and banned from creating polluting projects and those that rely on consuming too much energy and resources.Chinese authorities would also help to create a sound investment environment by simplifying examination and approval procedures and steadily accelerating the free exchange of the country's currency under the capital account.The government would establish a cross-department supervision mechanism over foreign mergers and acquisitions in effort to safeguard national economic security, he said.Assistant Minister of Commerce Chong Quan said multinationals were encouraged to strengthen cooperation with their Chinese partners in promoting regional development, technological innovation, outsourcing services, product safety and exercising corporate social responsibility.Chong said his ministry had named 10 cities where "conditions are mature", the "base cities" of outsourcing services. They are Beijing, Dalian, Xi'an, Shenzhen, Chengdu, Wuhan, Nanjing, Shanghai, Tianjin and Jinan.By 2010, China's export volume of outsourcing services was expected to double that in 2005, he added. New foreign investment guideOn November 7, China released a new guide of industries open to foreign investment and foreign companies. It also listed those that were banned or restricted from entering the Chinese market.Foreign investors are invited to join efforts to promote the recycling economy, clean production, renewable energy utilization and ecological environment protection but prohibited from exploiting "important and non-renewable" mineral resources.The new guide replaced the 2004 version and takes effect on December 1.Since 1997, China has revised the industry guide for foreign investors on three occasions in hope of channeling foreign investment to serve the needs of industrial restructuring.The current policies to attract foreign investment were made 28 years ago when China was desperate for investment and foreign currency.However, the country has been the largest recipient of foreign investment among all developing nations for 15 consecutive years. A 2004 report to the UN Conference on Trade and Development noted the country attracted a per capita foreign investment of , much lower than the 4 per person that was invested in developed countries and below the world average of 7.Product safetyIn his speech at the roundtable, the assistant minister stressed that China has taken a highly responsible attitude towards product safety, urging multinationals to join the nation's efforts to guarantee product safety."Made in China" is a fruit of international endeavor because more than 50 percent of China's exports come from the processing trade sector, said Chong, "the exported products were manufactured in line with foreign standards and foreign customers' requirements," he said.Meanwhile, products made by foreign invested companies in China comprised a majority of the nation's exports, accounting for 58 percent of the total export volume, said Chong."China should not be the only one to blame for defective products," said the assistant minister, "product safety is a serious matter for the world as a whole and multinationals bear key responsibilities in coping with the challenge,"He said multinationals should keep a close watch on design, inspection and sales of their products and make sure their raw materials are up to safety standards.In the wake of headline food scandals, China's cabinet approved in principle a draft law on food safety to address the "weak points" in food production, processing, delivery, storage and sales at the end of October.The draft law proposed a food safety risk supervision and evaluation mechanism to provide a "key basis" for constituting food safety standards and food born disease control measures. The mechanism demanded a "unified, timely, objective and accurate" disclosure of emergency information.

BEIJING - China purchased at least 400 billion yuan (.6 billion) of goods and services in 2007, a new high compared to the 368.1 billion yuan recorded a year earlier, preliminary figures from the Ministry of Finance (MOF) revealed.Assistant Financial Minister Zhang Tong described the expansion as "outstanding" given the procurement stood at only 100 billion yuan in 2002, the first year the mechanism was introduced.The past five years have also witnessed an increasingly diversified government consumption that expanded from solely commodities in the beginning to services and engineering, he said. With 13,000 people engaged in purchasing nationwide, China has twice revised its procurement list to include 18 categories encompassing nearly 4,770 items.Energy-saving products accounted for a large percentage of the newly-added items. To lead by example, the government has pledged to reduce energy consumption for every 10,000 yuan of gross domestic product by 20 percent and pollutant emissions by 10 percent for the 2006-2010 period.This year, student textbooks for primary and junior high schools, medicine, farm machinery and other items to distribute to the needy free of charge or at inexpensive prices will be added to the list, Financial Minister Xie Xuren told a recent work meeting for 2008.Under a MOF directive promulgated last month, government procurement will favor independent innovation products starting this year, a practice, experts said, the United States adopted in the late 1950s to foster domestic high-tech industries, including aeronautic and astronautic technology, computing, semiconductors and integrated circuits.Qinghua University law professor Yu An said the move would provide good incentives for domestic firms to speed up technical innovation.MOF statistics revealed the procurement had spared an aggregate expenditure of at least 180 billion yuan between 2002 and 2007.The benefits, however, didn't drown out grumbles from the Heilongjiang provincial chapter of the Revolutionary Committee of the Chinese Kuomintang, one of the country's eight political parties, beside the ruling Communist Party of China (CPC).At a meeting last month, the chapter held transparency in government procurement should be enhanced as some products were found to be overpriced, of unsatisfactory quality or without effective after-sales service.Tendering companies must be subject to real-time supervision to avoid bribery and kickbacks. Perpetrating firms must be blacklisted and banned from the procurement, while governmental departments must submit their accounting ledgers for regular auditing scrutiny, they said.

Wu Bangguo,chairman of the Standing Committee of the National People's Congress,delivers a speech during the seminar marking the 10th anniversary of implementing the Basic Law in Beijing June 6, 2007. [Reuters]The central government will continue to support Hong Kong in developing a democratic system that suits its conditions, but any reform must be gradual and in accordance with the Basic Law, top legislator Wu Bangguo said yesterday in Beijing. Wu, chairman of the Standing Committee of the National People's Congress, the top legislature, made the remarks at a seminar marking the 10th anniversary of implementing the Basic Law. The Basic Law is the constitutional document for the Hong Kong Special Administrative Region (SAR). It enshrines the key concepts of "one country, two systems", "Hong Kong people governing Hong Kong" and "a high degree of autonomy". Wu said events have proved, and will continue to prove, that the principle of "one country, two systems" is workable and feasible and the Basic Law is a sound law able to withstand the test of time. He emphasized that Hong Kong must uphold State sovereignty and ensure prosperity and stability while enjoying a high degree of autonomy. Being an SAR directly under the central government, "Hong Kong's high degree of autonomy is not intrinsic, but authorized by the central government". "It only has as much power as authorized by the central government. There is no so-called residual power." But Wu said the central government will never interfere in affairs within the purview of the autonomy of the SAR. Hong Kong Chief Executive Donald Tsang said at the seminar that the SAR has retained its international features, rule by law and various kinds of freedoms guaranteed by the Basic Law after its return to the motherland. "With State care and assistance, we have strived to display our unique advantages and made significant achievements widely recognized by the international community," Tsang said. The Basic Law has laid a solid foundation for Hong Kong's economic and social development and the improvement of people's livelihood, he added. Former secretary of justice Elsie Leung added that to achieve the ultimate goal of universal suffrage, and maintain prosperity and stability in Hong Kong, it is necessary to have a clear understanding of the relationship between the central government and Hong KongLeung said Hong Kong has made gradual progress in democracy in accordance with the Basic Law over the years. Since its return to the motherland in 1997, the number of members in the Election Committee, which elects the chief executive, has grown from 400 to 800; and they are from different social strata and sectors. In the Legislative Council, the number of directly elected seats has also increased from one-third in the first term to half in the third term. The Basic Law itself is a result of broad participation of Hong Kong citizens as well, Wu said, pointing out that 23 of the 59 members of the drafting committee were from Hong Kong. The full text of the draft law was made public twice for public comments. Different social strata, sectors and groups in Hong Kong came up with nearly 80,000 comments and proposals. "In other words, each and every article of the Basic Law represents the broad consensus of Hong Kong society," Wu said.

New statistics showing a continuous rise in house prices fly in the face of numerous media reports that domestic property prices have already started to decline in some cities.Policymakers should step up efforts to curb surging house prices now to avoid a later rush for homes in fear of further price hikes.Housing prices in 70 large- and medium-sized cities rose 10.5 percent year-on-year in November. The rise, 1 percentage point higher than that of October, hit a new high, undermining the government's efforts to stabilize house prices.As part of its macroeconomic controls to cool economic growth that is bordering on overheating, the government has introduced a host of tightening measures to rein in soaring house prices.For instance, the banking authorities recently made a strict definition of "second home" according to the property owned by the families of mortgage applicants rather than just the applicant.The rule will deal a heavy blow to speculative homebuyers as they will have to make a higher down payment and cannot enjoy preferential interest rates. In some cities, it was such speculative house purchases that considerably fuelled runaway property price hikes.Besides, the government also decided to adopt a tight monetary policy to check credit growth. In the absence of easy access to bank loans, it is believed that some developers may cut prices to promote sales due to liquidity concerns instead of hoarding houses for fatter profits.Under such circumstances, media reports from across show the country that house sales are shrinking and prices are plunging in cities that once boasted jaw-dropping amounts.It is surely not difficult for these reports to find an audience. Rocketing house prices in recent years have made home ownership a heavier than ever burden for most potential buyers.However, the latest house price data has proved it is only too premature to conclude that the property market has reached a turning point. The November figure indicates that the momentum of property price hikes in major cities remains strong.Only when the government substantially increases the supply of affordable homes for low-income groups and provides more land lots for development can the imbalance of demand and supply in the property market be addressed.