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WUHAN, March 26 (Xinhua) -- China on Friday started building a canal from the middle section of the Yangtze River to a tributary that connects with China's South-North Water Diversion project.Costing more than six billion yuan (880 million U.S. dollars), the 67.23 km project will divert 3.1 billion cubic meters of water every year from Yangtze's Jingjiang section to the Hanjiang River, one of the major sources of water for north China once the diversion project is complete.China's South-North Water Diversion project is designed to divert water from the water-rich south to the dry north.The central part of the project will divert water from Danjiangkou Reservoir on the Hanjiang River to north China cities like Beijing and Tianjin.According to research by Hubei provincial environmental protection bureau, without water from the canal the Hanjiang River would only have one third of its average runoff once water is diverted, and the water level of middle and lower reaches of Hanjiang would drop by 0.5 meter.The canal, which will be completed in 2014, will prevent problems arising such as algae pollution if water levels were decreased dramatically, said Shen Xiaoli, an engineer with the Hubei Environmental Sciences Institute.The canal is expected to benefit about 8.9 million people and 43,000 hectares of farmland in the lower reaches of Hanjiang.Once completed the five to six meters deep canal could be used by ships weighing more than 1,000 tonnes, facilitating transportation of coal from the north to the south, said Xu Shaojun, head of the Hubei Provincial Investigation and Design Institute of Water Resources and Hydropower.

CHICAGO, May 22 (Xinhua) -- The macroeconomic control policies adopted by the Chinese government since mid-2008 have been proven successful, two economists said Saturday.Since late 2008, the Chinese government has taken a series of macroeconomic control policies to deal with the global financial crisis. The government carried on massive financial investment, some of which focused on real estate."In spite of some problems, the Chinese government has been making great progress in regulating and controlling the Chinese economy during the global financial crisis," Min Tang, a Chinese economist, said in an exclusive interview with Xinhua."Everything has two sides, good and bad. This macroeconomic control policy is an action taken to fight against a crisis," he said.Tang believed that whether or not the policies are successful should be judged from the macro perspective instead of a micro perspective."China was able to resume its rapid growth first when the global economy was still going downhill," Tang said, "China also successfully kept the confidence of its people and enterprises, which is more important than anything else. Therefore, the government's macro control is very successful."

BEIJING, April. 15 (Xinhua) -- China's consumer price index (CPI), a main gauge of inflation, rose 2.4 percent year on year in March, the National Bureau of Statistics (NBS) announced here Thursday.The figure was 0.7 percentage points lower than the previous month, and for the first quarter, it was up 2.2 percent.The producer price index (PPI), a major measure of inflation at the wholesale level, rose 5.9 percent in March from a year earlier.China's PPI went up 5.2 percent year on year in the first quarter, said NBS.

JINAN, May 2 (Xinhua) -- A Hong Kong cargo ship sank off Weihai City, east China's Shandong Province, Sunday after a collision with a Liberian-registered freighter, rescuers said.All 46 crew members of the two vessels were safe after the accident at 5:23 a.m., the city's maritime safety bureau said in a statement.The accident could have occurred in foggy conditions at the time, said Li Zhiqiang, an official with the city's maritime safety bureauThe 23 Chinese crew of the Hong Kong-registered Bright Century and the 23 Indian crew of the Liberia-registered Sea Success had been rescued as of noon, he said.Water had flooded into the damaged prow of the Sea Success, but the vessel was still afloat.The bureau had dispatched a ship to shadow the vessel as it was still in negotiations with the owner about the cost of towing the ship to port.The bureau is investigating the cause of the accident.

COPENHAGEN, May 28 (Xinhua) -- Danish Deputy Prime Minister and Foreign Minister Lene Espersen met here Friday with visiting Vice Chairman of the Chinese National People's Congress Standing Committee Hua Jianmin.Espersen congratulated China on its successful opening of the 2010 World Expo in Shanghai. She said Denmark has fully supported the expo by sending its national treasure Little Mermaid."I hope the Chinese audience will learn more about the Danish culture and the economic and social development of Denmark," Espersen said.The minister praised the Chinese people's hard working and entrepreneurial spirit, and lauded the miracle of China's economic development.Espersen said China and Denmark are important trading partners, not least due to the fact that there are more than 400 Danish enterprises investing in China."Denmark greatly appreciates that China recently sent a trade and investment mission to visit Denmark, and Denmark more than welcomes Chinese corporations to invest in Denmark," Espersen said.Hua, for his part, said bilateral relations have matured over the past 60 years. He said the two sides have sought a common ground on the basis of friendly cooperation.Hua noted that the bilateral comprehensive strategic partnership established in 2008 has offered new opportunity for further development of the Sino-Danish relationship.He also mentioned the increased cultural exchanges between China and Denmark, citing the establishment of a Confucius Institute in Denmark.