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WASHINGTON - US Treasury Secretary Henry Paulson will visit China's largest lake next week on a trip that will highlight global environmental challenges. Treasury Secretary Henry Paulson speaks during an interview with Reuters in Washington July 2, 2007. [AP]Paulson will also hold talks in Beijing with President Hu Jintao that will focus on the Strategic Economic Dialogue, high-level discussions launched last year in an effort to deal with economic tensions between the US and China. "This trip is part of an ongoing process to strengthen our strategic economic relationship - to address long-term issues such as working with China to rebalance its growth and increase the flexibility of its currency and also to address short-term issues as they arise," Paulson said Tuesday in announcing the trip. Paulson will begin the trip with a visit July 30 to Qinghai Lake, the largest lake in the country and an example of some of the environmental challenges facing China as it struggles to deal with pollution. "The only way to make progress on climate change is to engage all the large economies, developed and developing, to work toward embracing cleaner technology and reducing emissions," Paulson said. "What's happening with the environment in the middle of China not only affects the local climate and economy but also the global climate and economy." Paulson will meet on July 31 in Beijing with Hu and Vice Premier Wu Yi, who is leading the Chinese side in the strategic dialogue talks. The administration is coming under pressure from Congress to show results from these discussions, particularly in the area of currency values. American manufacturers contend that the yuan is undervalued by as much as 40 percent, which makes Chinese products cheaper for US consumers but makes it more difficult for US products to be sold in China. The first strategic dialogue session was held in Beijing last December with a follow-up meeting in Washington in May. The two countries have pledged to meet twice a year with the next session to take place in China later this year. An exact date has not yet been announced. The Treasury Department said in a statement announcing the trip that Paulson in his meetings with Chinese leaders would raise issues of concern to Congress as well as follow up on issues that were identified as priority items at the May meeting of the strategic dialogue. US lawmakers have grown increasingly unhappy as America's trade deficit with China has soared, hitting 3 billion last year, the largest ever recorded with a single country and one-third of the US total deficit with the rest of the world. Various bills have been introduced that would require the administration to take a harder line on the currency issue including pursuing economic sanctions if China does not move more quickly to allow its currency to rise in value against the dollar. China has reiterated that it does not manipulate its currency and the currency reforms are moving as quickly as the developing economy and financial system will allow.

SHENZHEN: Efforts to explain and publicize the new Labor Contract Law have thwarted many attempts to dodge the provisions included in it, but violations still occur, an official of a worker's union said Wednesday."We have been keeping an eye out for any abnormal redundancies and it appears the situation is improving," Xie Liangmin, sub-chief of the legal affairs department of the All China Federation of Trade Unions, said during a visit to this southern city.However, a company in Guangdong Province was recently found to have fired a group of contract workers and then rehired them through a manpower services company, Xie said."All attempts by companies to evade their responsibility to take care of their employees will be punished after the detailed regulations of the Labor Contract Law are issued," he said.The federation is working closely with the authorities to draw up detailed regulations, the release of which is likely to be postponed until the first quarter of next year, Xie said.Although the federation has publicly criticized two companies - IT equipment manufacturer Huawei Technology and retail giant Wal-Mart - for attempting to dodge some parts of the law before it takes effect on January 1, no punishments have been handed down.Dong Ping, an official with the Ministry of Labor and Social Security, called on companies to come to terms with the legislation."The law provides an opportunity for companies to develop harmonious and stable working relationships with their employees within a more competitive environment. A successful company always respects its employees and abides by the law," Dong told a forum on promoting the new law.Terry Guo, CEO of Foxconn Technology, a leading IT manufacturer with operations in Shenzhen, said it would give its full support to the Labor Contract Law."The new law will prod companies into becoming more efficient and upgrading their technology. It should help them accelerate their strategic repositioning and restructuring," Guo said.He said Foxconn will work to improve the quality of its staff, save energy and encourage innovation to offset expected rises in its operational costs.The company has also revised its human resources policy and internal regulations to bring them in line with the Labor Contract Law.

Major travel agencies had cut prices of domestic group tours by an average 30 percent as of yesterday, as the weeklong National Day holiday approaches its conclusion.The discount trips cover some top attractions, including Jiuzhaigou in Sichuan Province, Lijiang in Yunnan Province, Zhangjiajie in Hunan Province and some spots in the Xinjiang Uygur Autonomous Region.Costs for outbound tours have also been cut.The prices of tours to Japan and the Republic of Korea have fallen by as much as 1,000 yuan (3), according to www.ctrip.com, a travel service company.The country's tourism market saw a peak yesterday, the National Holiday Office said in a statement.More than 90 percent of the hotel rooms in most tourist destinations were booked, the statement said.The office said the 119 scenic spots in its nationwide monitoring system had received 3.28 million tourists on Wednesday and 3.07 million yesterday.Beijing's mass transit railway system carried 3.74 million people during the first two days of the weeklong holiday, according to municipal metro authorities.The number was almost double the amount on a normal day.An official with the Beijing environmental sanitation group said tourists had left about a third of the garbage at Tian'anmen Square each day that they did last year.Sanitation workers cleared 26.6 tons of garbage from the square in the first two days of the holiday, compared with 80 tons last year.

KUNMING -- A gas blast in a private coal mine has killed at least seven miners and injured five in southwest China's Yunnan Province, sources with the local government said Saturday.The blast occurred around 6:00 a.m. Saturday in the Shunxing Coal Mine in Fuyuan Township of Qujing City, in eastern Yunnan. Twenty-seven miners were working underground, and fourteen people managed to escape.More than 400 rescuers struggled to pull out seven bodies and five miners alive. One miner remains missing.The injured workers are being treated in a local hospital.The coal mine, which was built in 1984 with a designed production capacity of 90,000 tons, had been ordered to suspend operation and go through renovation after county coal mine administration staffs inspected the mine on Friday, but coal mine managers secretly organized the miners to work in the night.Local officials are investigating into the cause of the accident.

The second batch of quotas for qualified foreign institutional investors (QFII), a scheme for foreign players to invest in the A-share market, is likely to be about billion, an industry insider, who declined to be named, told China Daily on Friday. The source said that the second batch of QFII quotas was being discussed, and pending approval by the Chinese government, was likely to be about billion, not exceeding that of the last batch, which was billion. Hu Xiaolian, Deputy Governor of the central bank and Administrator of the State Administration of Foreign Exchange (SAFE), said earlier that related rules on the QFII scheme were being amended and the total QFII quota would certainly see an increase in 2007. However, she declined to give a specific sum. China has so far approved 52 overseas institutions as QFIIs to invest in the A-share market, of which 49 have got a combined investment quota of .995 billion from SAFE, near the upper limit of billion as stipulated previously. Industry insiders said the demand for QFII quotas was strong at present and more should be granted. "Despite the excessive liquidity in the A share market, the Chinese government should grant more quotas to QFIIs. Otherwise, they will find other ways, making it more difficult to supervise," She Minhua, an analyst with CITIC China Securities said. Meanwhile, the booming Chinese stock market is attracting more foreign financial firms to set up joint ventures in the investment sector. The Financial Times on Thursday reported that Nikko Asset Management, a QFII approved in 2003, has become the first Japanese fund firm to acquire a 20 per cent stake in a local firm, the Shenzhen-based Rongtong Fund Management Company. Nikko AM bought the stake from Shaanxi International Trust & Investment (SITI), for 3.8 yuan per share, valued at 475 million yuan, according to a statement by the Shenzhen-listed SITI.