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BEIJING, March 3 (Xinhua) -- The Chinese antique collector who bid at a Christie's auction for two looted bronze animal heads, Tuesday told why he has refused to pay his winning bid.     The two looted pieces were not allowed to enter China according to a regulation issued a day after the auction by China's cultural relics administration, and as a result, the payment should not be made, Cai Mingchao said in a statement released by the National Treasure Funds of China (NTFC).     China has repeatedly demanded the return of the sculptures -- heads of a rat and a rabbit -- looted when the Old Summer Palace (Yuanmingyuan) was burned down by Anglo-French allied forces during the Second Opium War in 1860.     "The auction negated the history that the cultural relics were looted, defied the ethics of international society, and breached the rules of commercial auctions," Cai said in the statement, which was e-mailed to Xinhua.     Cai said that the sculptures would disappear forever and auctioning looted antiques could become a commercial practice had he not been the final bidder at the auction in Paris on Feb. 25.     "I got the chance and I was capable of buying the bronzes at the time of the auction. As a Chinese collector and art advisor, I'm willing to rescue looted artworks," Cai, NTFC's collection advisor, emphasized.     Cai won the auction by bidding 31.49 million euros (39.63 million U.S. dollars) by telephone, but he told a press conference Monday that no payment would be made.     So far, five of the 12 bronze animal heads have been returned, while the whereabouts of five others are unknown.     An online survey conducted by sina.com.cn showed more than 70 percent of the netizens support Cai's patriotic action for he had safeguarded China's interests. However, others said China's reputation would be affected and Christie's is still able to hold new auctions.     An attempt to contact Cai failed and employees of his company in Xiamen, Fujian Province, said they had lost contact with their boss since Monday.     The company was established in 2003 with a registered capital of 1.16 million yuan (nearly 170,000 U.S. dollars) and more than 10 employees. Cai owns 95 percent of the company's shares.     Chinese Foreign Ministry spokesman Qin Gang reiterated on Tuesday that the looted sculptures were originally owned by China and China opposed any auction of these cultural relics and demanded their return. Qin said he learned the bidder was Chinese on Monday after the news conference.     Christie's has not made any official comment over the issue so far.     NTFC was established in 2002 under the administration of China Foundation for the Development of Social Culture registered under the name of the Ministry of Culture for the purpose of repatriating looted Chinese artifacts.

BEIJING, Feb.2 (Xinhua) -- "The wheat grass gets so dry that it catches fire! I've never seen this in my whole life," said 50-year-old Wei Liuding in Baisha village, Muzhong County of North China's Henan Province.     Wang Hongwei, a farmer from Putaojia Village of Henan's Lankao County, grievingly held a grasp of wheat grass roots in his hand.     "All the wheat in my land is dying like this," he told a Xinhua reporter. Photo taken on Feb. 2, 2009 shows the droughty reservoir in Yiyang County of Luoyang city, central China's Henan ProvinceHenan, China's major grain producer, issued a red alert for drought Thursday. The provincial meteorological bureau said the drought is the worst since 1951. The drought have affected about 63 percent of the province's 78.9 million mu (5.26 million hectares) of wheat.     But Henan Province is not the only victim in thirsty northern China.     Anhui Province issued a red drought alert Sunday, forecasting a major drought that will plague more than 60 percent of the crops north of the Huaihe River is no rain is reported by next week.     Shanxi Province was put on orange drought alert on Jan. 21, as nearly one million people and 160,000 heads of livestock are facing water shortage.     Provinces such as Shaanxi, Shandong, Hebei and Jiangsu are also reeling from droughts.     According to the Office of State Flood Control and Drought Relief Headquarters on Sunday, the droughts in northern China have affected about 145 million mu (9.67 million hectares) of crops, and have left 3.7 million people and 1.85 million livestock with poor access to drinking water.     Secretary of the office E Jingping said the headquarters sent four working teams to eight provinces to supervise the drought relief work.     The Ministry of Finance (MOF) has allocated 100 million yuan (14.6 million U.S. dollars) in emergency funding to help ease the drought.     E said about 1.38 billion yuan had been used to fund the relief work since the end of December. Some 74.60 million mu (4.97million hectares) of farmland have been irrigated, and drinking water shortages have been eased for about 500,000 people and 280,000 livestock.     The irrigation system in the drought area is under a crucial test. The water flow under Xiaolangdi Dam on the Yellow River reached 550 cubic meters per second as of 2 p.m. Saturday, to help soothe the drought in Henan Province.     "The water in my well is very deep today," Wei Liuding told Xinhua reporter Sunday.     "Although we were informed that the government's subsidies will be soon handed out to households, I decided not to merely rely on the government, and I am now irrigating the lands for four hours a day at my own expense."     But with a family of five, Wang Hongwei was more worried.     "Though we irrigate the lands now, the production will surely see a big drop. Like many other people in our village, I am thinking about doing odd jobs in the town to earn some extra cash."     Li Xin, an advocate for the income and rights of farmers and migrant workers who opened a company to sue false seed producers, said, "Even if the farmers go to towns and cities to work, their pays will wane as the financial crisis continues to loom."     Duan Aiming, head of the Irrigation Research Center of the Chinese Academy of Agriculture Sciences, said the current drought has "sound an alarm to the water resource utility in northern China".     "Much water is being wasted, because many mature irrigation technologies cannot be put into practice for lack of funds, and the input on irrigation infrastructure is not enough," said Duan.     "Only by a long-term improvement of the irrigation system can the government realize its goal of increasing the grain yield and the farmers' income," said Li.     In the first document of the year issued jointly by the State Council and the Central Committee of the Communist Party of China on Sunday, local authorities were urged to take measures to avoid declining grain production, ensure the steady expansion of agriculture and rural stability.     "The foundation for securing steady and relatively fast economic growth is based upon agriculture; the toughest work of securing and improving people's livelihoods stays with farmers," it said.

BEIJING, Feb. 26 (Xinhua) -- Chinese authorities launched a website to handle public complaints regarding irregular practices during the selection and appointment of Party and government officials.     The public is encouraged to log on to the website (www.12380.gov.cn), launched by the Organization Department of the Communist Party of China (CPC) Central Committee, to report offences.     The site aims to improve public supervision and to ensure prompt detection and correction of offences involving official selection and appointment, the Organization Department said Thursday in a statement.     Complaints could be filed in anonymity, but real names were preferred, said the website. It requires informants to report problems truthfully and warns that fabrication and false charges could lead to legal punishment.     The website also said it mainly handles complaints about officials above the county level.     To prevent malicious or repetitious reporting and junk mail, informants can only submit a maximum of five complaints from one computer in a single day.     The Organization Department had already set up a report center for offences in official selection and appointment. In 2004, it opened an informant's hotline (12380).

BEIJING, April 15 (Xinhua) -- Foreign direct investment (FDI) in China posted a 20.6 percent year-on-year decline in the first quarter to 21.78 billion U.S. dollars, the Ministry of Commerce announced Wednesday.     In March, FDI was 8.4 billion U.S. dollars, the biggest amount since October 2008 which was 8.35 billion U.S. dollars. However, the March figure was down 9.5 percent from a year earlier, ministry spokesman Yao Jian said at a news conference.     March was the sixth consecutive month that FDI fell. The good news is that the decline eased from the 15.81 percent drop in February and a 32.67 percent drop in January.     Zhang Hanya, an economist with the National Development and Reform Commission said a reduced decline indicated overseas investors growing confidence in the country's economic recovery.     Chinese Premier Wen Jiabao said Saturday that the Chinese economy showed signs of positive improvement in the first quarter as a result of the economic stimulus package adopted by China.     Yao added stable investment inflows were important for the country to stabilize exports, enhance employment and boost consumption as the government tries to make China more attractive to investors.     The ministry said in March it was shifting authority for approving certain foreign investments to provincial governments.

BEIJING, March 26 (Xinhua) -- China's central bank governor has spoken highly of the government's rapid responses to the current global financial crisis, featuring decisively adopting a proactive fiscal policy and an adaptively easing monetary policy, and launching a bundle of timely, targeted and temporary policies and measures.     The prompt, decisive and effective policy measures adopted by the Chinese government demonstrates "its superior system advantage when it comes to making vital policy decisions," says Zhou Xiaochuan, president of the People's Bank of China (PBC), in an article entitled "Changing Pro-cyclicality for Financial and Economic Stability."     It is Zhou's third article published on the central bank's official website (WWW.PBC.GOV.CN) this week to discuss the issue of the current global financial crisis. His first and second articles, published on Monday and Tuesday, are entitled "Reform the International Monetary System" and "On Savings Ratio," respectively.     In the third article, the 61-year old central bank governor tries to find out the root causes for the current financial crisis, including but not limited to lessons on monetary policy, financial sector regulations, accounting rules.     The top Chinese banker says he wants to stimulate debate and discussions on some of the pro-cyclical features in the system, possible remedial measures, and how monetary and fiscal authorities can play their professional roles at times of severe market distress.     "Financial crises normally originate in the accumulation of bubbles and their subsequent bursts. Usually, economists pay a lot of attentions to pro-cyclicality on the macro level.     However, on the micro level, there are quite a number of notable pro-cyclical features embedded in the market structure today, which should be addressed as we deal with the current crisis and reform the financial system," he says.     Zhou suggests that in the current market structure, more counter-cyclical mechanisms or negative feedback loops on micro-level should be put in place to sustain a more stable financial system.     In the article, he notes that rating problems and herding phenomenon arise from outsourcing.     The global financial system relies heavily on the external credit ratings for investment decisions and risk management, giving rise to a prominent feature of pro-cyclicality, according to the central bank governor.     "Economic upswings produce euphoria and downturns generate pessimism," he says, "Many market players adopting ratings from the three agencies and using them as the yardstick for operations and internal performance assessments clearly result in a massive "herd behavior" at the institutional level."     Zhou points out that some market players seem to have forgotten that the ratings are no more than indicators of default probabilities based on past experiences but were never meant to be guarantees for the future, he says. "Once problems take place, as we have seen during the current crisis, fingers are pointed to the rating agencies," he says.     He suggests that financial institutions should try to rely more on internal rating in assessing risks.     He calls for giving full play to the professional role of authorities in maintaining overall financial stability and establishing a counter-cyclical mechanism for capital requirement     "To stabilize markets under severe stress, finance ministries and central banks need to act fast and apply extraordinary measures," he says, "Untimely or delayed response falls behind the curve and would make the outcome less than desired even if the response is correct and strong."     In modern Western societies, a prolonged political process for mandates to finance ministries or central banks often miss the best timing for action, Zhou says, adding, "We have observed such cases during the current crisis."     He suggests that governments and legislatures may consider giving pre-authorized mandates to ministries of finance and central banks to use extraordinary means to contain systemic risk under well-defined stress scenarios, in order to allow them to act boldly and expeditiously without having to go through a lengthy or even painful approval process.     "Such systematic pre-authorized mandates would put the specialized expertise of finance ministries and central banks to the best use when markets need it the most," he stresses.     The central bank governor attributes China's current success in easing the impacts of the crisis to the country's financial sector reform and ongoing macroeconomic stimulus measures     In 2003, fully aware of the systemic vulnerabilities of China's banking industry, the Chinese government made a courageous and strategic decision to restructure the four state-owned commercial banks, says Zhou, who took over as the PBC governor in late 2002.     In the article, Zhou gives a look back on the reforms of the country's major banks and security industry.     But he warns, "We should bear in mind that despite the notable achievements in banking reform, the major banks have not gone through a full business cycle and still have much to improve. An economic slowdown will be the ultimate stress test for the robustness of the banks' strengths."     According to the bank governor, irrespective of China's sound financial sector, the Chinese economy, especially the export sector, has felt the impact brought by the slowdown of the global economy.     He praises the Chinese government for its plans to stimulate domestic demand and promote stable and relatively rapid economic growth, including the extra investment of 4 trillion yuan (685 billion U.S. dollars) in over two years, the ten measures to revitalize the industrial sectors, and other bolster measures to increase money supply, promote employment, reform taxes and medical and healthcare system.     "Having taken the above-mentioned measures, China expect to maintain stable economic growth by boosting domestic demand and reducing dependence on external demand, thus serving as a stabilizing force in global economy," Zhou says.     In overall, the macroeconomic measures have produced preliminary result and some leading indicators are pointing to recovery of economic growth, indicating that rapid decline in growth has been curbed, he concludes.