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BEIJING, May 22 -- The State Council yesterday ordered government departments to cut spending by 5 percent this year to free up money for quake reconstruction.    The money will help to finance a 70 billion yuan (10 billion U.S. dollars) fund for rebuilding after the May 12 quake, which killed tens of thousands, the Cabinet said on its website. Chinese Premier Wen Jiabao speaks on the quake relief work during a meeting of the State Council, in Beijing, capital of China, May 21, 2008.The death toll from the quake rose to 41,353 by noon yesterday, and 274,683 were injured, according to the Information Office of the State Council. The number of missing has been put at 32,666.     The overall impact of the quake on China's fast-growing economy is expected to be limited. Sichuan is a major source of coal, natural gas and some farm goods but has little industry.     The quake destroyed thousands of buildings, knocked out power and phone services and damaged factories, mines and other facilities. State-owned and private companies suffered 67 billion yuan (9.5 billion U.S. dollars) in quake losses, according to the government's preliminary estimates.     Yesterday's Cabinet statement gave no details of how much money the spending cuts were expected to raise. But the reported budget for the central government this year, including the military, is 1.3 trillion yuan (187 billion U.S. dollars) - and 5 percent of that would be 65 billion yuan (9.3 billion U.S. dollars).     Beijing will set a moratorium on new government building projects, Premier Wen Jiabao told a State Council meeting.     Wen said the quake "added uncertainties" to the economy but he said it was stable and its fundamentals were not affected, Xinhua reported.     Donations to quake-hit regions reached 16 billion yuan (2.29 billion U.S. dollars), of which 1.76 billion yuan (250 million U.S. dollars) has been forwarded to affected areas, according to the information office.     In addition, the Ministry of Finance announced yesterday that it has allocated another 660 million yuan (94.83 million U.S. dollars) in relief funds to quake-stricken areas.     As the summer draws near, the quake-hit regions are facing mounting pressure to prevent epidemics.     About 45,000 medical workers are working in all quake-hit counties and townships in Sichuan, according to the Ministry of Health.     About 1,196 tons of disinfectants and bactericides were distributed, the ministry said in a statement.     In seven out of the 11 worst-hit counties, sanitation work has been completed and in the other four, one-third of the townships have been covered.     According to local health departments, doctors found 58 cases of gas gangrene, a bacterial infection that produces gas within gangrenous tissues, as of Sunday.     But officials said the virus does not affect people without open wounds.     Meanwhile, rescuers are still fighting time to find survivors.     According to the Department of General Staff of the People's Liberation Army, rescuers saved and evacuated 396,811 people to safe places as of yesterday noon.     A total of 6,452 have been dug out alive from the rubble, with 77 rescued in the 36 hours to noon yesterday.     The Ministry of Health said that 3,424 people injured in the quake had died in hospitals.     Hospitals have taken in 59,394 injured people since the quake, of whom 30,289 were discharged, the ministry said.     Power has been restored in most parts of quake-hit areas but Beichuan County, one of the worst hit, remained blacked out and electricity in Hongyuan was cut off again due to aftershocks, the State Electricity Regulatory Commission said in a statement.     Experts yesterday said there was no need to worry that the 33 lakes in Sichuan - formed after landslides blocked rivers - would burst their banks.     "Generally speaking, those lakes are safe because the flood season is yet to come," said Liu Ning, general engineer of the Ministry of Water Resources.     "We are monitoring the lakes round the clock," he added.

BEIJING, June 7 (Xinhua) -- China's central bank on Saturday ordered lenders to set aside more money as reserve, the fifth such move this year. It was the latest effort to enhance liquidity management in the banking sector.     The reserve-requirement ratio would be raised by 0.5 percentage points on June 15, and another 0.5 percentage points on June 25, the People's Bank of China (PBOC) said on its website.     This will bring the ratio to a record high of 17.5 percent.     The PBOC also said that corporate financial institutions in the worst quake-hit areas including Chengdu and Mianyang, would postpone carrying out the regulation. But it didn't say how long the delayed period would be.     "The rise, a further materialization of the tight monetary policy, is aimed at strengthening liquidity management in the banking system," the statement said.     "The government adopted differential monetary policies to support reconstruction in the quake-hit areas," said Peng Xingyun, a senior expert with the Chinese Academy of Social Sciences (CASS).     Zhou Xiaochuan, the central bank governor said earlier that the PBOC was to take flexible monetary policy to aid after-quake reconstruction.     The 8.0-magnitude earthquake centered on Sichuan's Wenchuan County has so far caused 206.53 billion yuan of economic losses to the industrial and mining enterprises in the quake regions.     The PBOC had raised the ratio four times previously this year. The latest was on May 12 when it lifted the ratio to a new high of16.5 percent.     Yin Jianfeng, director of the Institute of Finance and Banking with the CASS, said the move would help the country reduce inflationary pressure and to control excessive investment.     "But the move will not be as effective as the government expected because inflation nationwide mainly resulted from surging production material and food prices," he said. "A simple monetary policy will not help."     The consumer price index (CPI), the main inflation gauge, was up 8.5 percent in April from a year earlier. This was nearly equal to February's 8.7-percent rise, the most since May 1996.     Some market experts said that after-quake restoration and reconstruction would beef up fixed assets investment, and add more inflation pressure to the nation's sizzling economy.     Soaring demand for cement, steel, copper, zinc, and a luminium were expected to push up the prices of basic building materials, according to the experts.     Zuo Xiaolei, Galaxy Securities chief economist, said huge foreign exchange reserves and economy unrest in neighbouring countries had posed great pressure to China's economy. This had forced the government to adjust its economic policy before it could reach a balance.     "A great deal of hot money swarmed into China's capital market, and the PBOC aims to hedging excessive monetary liquidity," said Wu Xiaoqiu, head of the Financial and Securities Research Institute of the China Renmin University.     Wu said the government was likely to carry out more monetary policies to curb inflation and liquidity in the near future.     China adopted the tight monetary policy late last year to prevent the economy from overheating. It was also to guard against a shift from structural price rises to evident inflation. The country adhered to the policy despite a global slowdown hit by the international credit crunch.     The country's economic growth slowed in the first quarter but still reported double-digit growth. It expanded 10.6 percent, compared with 11.7 percent in the same period a year ago.

BEIJING, May 25 (Xinhua) -- All the barrier lakes (or quake lakes) formed after the massive May 12 earthquake in southwest China's Sichuan Province are "under control" but the situation is still grim, said Vice Minister of Water Resources E Jingping on Sunday.    Heavy rains forecast for the area over the next three days are a major threat, as the additional water build-up in the lakes could cause the landslide barriers that formed them to burst, flooding nearby areas, E told a news conference. Liu Ning, chief engineer of China's Water Resources Ministry, briefs the media on the emergency control of the Tangjiashan imprisoned lake in Beichuan County, southwest China's Sichuan Province, after a news conference in Beijing, capital of China, May 25, 2008.The 8.0-magnitude earthquake, aftershocks and landslides created 35 such lakes, with 34 in Sichuan, posing a new danger to more than 700,000 of the people who survived the deadly quake, thevice minister said.     E admitted that these lakes posed a challenge for the government's efforts to prevent secondary disasters in the quake regions.     The biggest concern is the Tangjiashan lake, the largest of the34 quake lakes in Sichuan, whose water level rose by nearly 2 meters Saturday to 723 meters, only 29 meters below the lowest part of the barrier.     About 1,600 armed police officers and People's Liberation Army soldiers were hiking on Sunday toward the Tangjiashan lake, hoping to blast away its landslide barrier before it bursts and causes a flood.     Earlier attempts to send military helicopters on the same mission were hampered by adverse weather and low visibility at the lake.     The ministry has drawn up evacuation plans for communities downstream of the 19 quake lakes at high risk of bursting, E said. He did not provide an estimate of the people who might have to move.     The massive earthquake also left 69 reservoirs in danger of collapse in Sichuan. Another 310 reservoirs were in "highly dangerous" situations and more than 1,400 posed a moderate risk, according to E.     Steps have been taken to tackle the problem, E said, such as completely draining the 69 collapse-prone reservoirs, lowering water levels at 826 others and putting all the damaged reservoirs under 24-hour observation.     The ministry wants to fix the reservoirs in the "highly dangerous" and more risky categories before July, when the rainy season is expected to start in the quake regions, he said.     Priority has been given to the Zipingpu dam, which is only 17 kilometers from the quake epicenter of Wenchuan County and would threaten 11 million lives on the downstream Chengdu Plain if it collapsed, E said. However, he said, the dam was structurally stable and safe despite some minor damage.     Meanwhile, 803 hydropower stations were damaged in the quake nationwide, including 481 in Sichuan.

BEIJING, Oct. 14 (Xinhua) -- The financial crisis and other major issues challenging the world will be discussed in the upcoming summit of the Asia-Europe Meeting (ASEM), according to Liu Jieyi, China's assistant foreign minister.     "The ASEM summit would be convened under the special international circumstance," said Liu at a press conference here on Tuesday.     He added the financial situation was in turbulence and the three major challenges, including food safety, climate change and energy issues, were interwoven.     Under the theme of dialogue, cooperation, mutual benefit and common prosperity, the summit would touch upon these issues.     The seventh ASEM summit will be held in Beijing from Oct. 24 to25. At present, most foreign members had confirmed their attendance.     Liu said all members would focus on disaster-relief cooperation, the promotion of trade and investment, sustainable development and strengthening dialogue.     Chinese President Hu Jintao will attend the meeting and Premier Wen Jiabao will preside over the meetings and a welcoming banquet.     Leaders from four coordinators, including China, the EU commission, Brunei and France, would hold a joint press conference after the summit, Liu said, adding several bilateral meetings would also be held.     "A chairman's statement is expected to be passed to reflect all members' stance on the major issues, outlining the key areas of cooperation in the future."     Other documents will also be passed to improve the substantial cooperation on three major areas, including political, economic cooperation as well as social and cultural exchange.     "This is another important event for China after the Beijing Olympic Games," Liu said.     The 45-member ASEM, established in 1996, is a high-level forum between governments of Asia and Europe. It aims at creating better conditions for cooperation between the two continents through strengthening dialogue and mutual u

LANZHOU, Sept. 14 (Xinhua) -- Inspectors had found poisonous chemical in the Sanlu infant formula produced by one of its partner producers in northwest China's Gansu Province, an official said on Sunday.     Two out of the 12 samples randomly selected from the Sanlu milk powder produced by the Haoniu Dairy Co., Ltd. in Jiuquan City had tested positive for melamine, said Xian Hui, vice-governor of Gansu.     "The products of Haoniu have been sealed up," he said.     The test was conducted after the Sanlu Group, a leading Chinese dairy producer based in northern Hebei Province, admitted that it had found some of its baby milk powder products were contaminated with melamine, a chemical raw material strictly forbidden by the country to be used in food processing.     As of Saturday, a total of 432 babies throughout the nation have been sickened with kidney stones after drinking the contaminated milk powder.     Haoniu was founded in 2002 with the registered capital of 51 million yuan (7.45 million U.S. dollars). Its production was in line with the Sanlu standard and its products use the Sanlu trademark.     As of Saturday night, Gansu has reported 102 cases of infant kidney stone caused by the Sanlu milk powder. Two babies have died, Xian said.     The province has so far seized altogether 164,000 packs of Sanlu milk powder.