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BEIJING, Jan. 14 (Xinhuanet) --The country's GDP growth rate will slow to 8.7 percent this year from 10 percent in 2010, and a key challenge in 2011 will be to ensure that anti-inflationary measures do not "significantly" reduce growth, the World Bank said on Thursday.The bank estimates that global GDP, which expanded by 3.9 percent in 2010, will slow to 3.3 percent in 2011, before reaching 3.6 percent in 2012. Developing countries will continue to outstrip growth in developed countries, it said.Amid credit-tightening measures to combat inflation and surging property prices, China's growth is expected to ease to 8.4 percent in 2012, the bank said.Despite the slowdown, China will spearhead Asia's economic expansion. According to the bank's forecast, the overall growth rate for developing Asian economies will ease to 8 percent from last year's 9.3 percent as governments rein in credit to cool inflationary pressures."For China, a big concern is how to ensure a soft landing of the economy without significantly reducing growth when the government takes measures to curb inflation," said Hans Timmer, director of development prospects at the World Bank.The consumer price index (CPI), a main gauge of inflation, accelerated to a 28-month high of 5.1 percent in November from a year earlier and most economists predict that it will be in the region of 4 to 4.5 percent this year.In a bid to combat inflation, the central bank hiked interest rates by 25 basis points twice in the last quarter of 2010.Ardo Hansson, lead economist of the World Bank's Beijing Office, said the country needs more flexibility in its foreign exchange policy to fight inflation.China's central bank set the yuan's mid-point beyond 6.60 against the US dollar for the first time on Thursday, breaching an important barrier just days before President Hu Jintao's visit to the United States next week.The People's Bank of China set the mid-point, from which the currency can rise or fall 0.5 percent on a given day, for daily trading against the dollar at 6.5997, the first time it had broken through 6.60.The yuan has risen around 3.6 percent since June when authorities dropped a peg with the US dollar that had been set to support the economy during the global financial crisis.Some US politicians have been pressing China to allow the currency to rise at a faster pace to help narrow a trade gap.US Treasury Secretary Timothy Geithner repeated his call on Wednesday for a faster appreciation of the yuan and added that such a move could lead to an easing of restrictions on US technology exports to China, with both civilian and military use."The recent quickened pace of yuan appreciation could be considered as a gesture by the Chinese government before Hu's visit to the US," said Dong Xian'an, chief macroeconomic analyst with Industrial Securities.According to Dong, the yuan will appreciate by 5 to 6.6 percent this year, "a moderate pace".Wang Tao, chief China economist at UBS Securities, said they expected the currency to grow by 5 percent in 2011.The yuan can now be increasingly used in cross-border transactions, in a bid to reduce dependence on the US dollar after Premier Wen Jiabao said in March that he was "worried" about holdings of dollar-denominated assets.The central bank is allowing banks and enterprises in areas that carry yuan-settled trade to use yuan-denominated investment overseas directly, it said in a statement on its website on Thursday, describing the initiative as a pilot program.According to data from HSBC, the average monthly volume of yuan-settled trade surged from 0.6 billion yuan ( million) in 2009 to 68 billion yuan between June and November 2010. And one-third of China's cross-border trade may be settled in yuan by 2016, as the government pushes for the internationalization of the currency.
SANTIAGO, Chile, Dec. 22 (Xinhua) -- Chilean President Sebastian Pinera and visiting Chinese State Councilor Liu Yandong met here Wednesday to discuss the development of relations between their two countries since the establishment of diplomatic ties 40 years ago.Pinera said that Chile was the first South American country to establish diplomatic relations with China. The past 40 years have witnessed steady development of bilateral relations, and close exchanges and fruitful achievements in cooperation in various fields.The Chilean side attaches great importance to the development of comprehensive cooperative partnership with China and sticks to "one China" policy, President Pinera said, adding that Chile is willing to work with China to continue developing and deepening the mutually beneficial bilateral cooperation in education, science and technology and other fields to benefit the two peoples.Chilean President Sebastian Pinera (L) meets with visiting Chinese State Councilor Liu Yandong in Santiago, Chile, Dec. 22, 2010.Liu said that since the establishment of diplomatic relations between China and Chile on December 15, 1970, China-Chile relations have developed in a sustainable and in-depth way, with the maintenance of close contacts between the two sides, and with increasingly deepening development of bilateral economic and trade cooperation.China and Chile have maintained coordination and cooperation in international and regional affairs, Liu said, calling China and Chile "good friends and good partners".China is willing to join hands with Chile in promoting incessant development of China-Chile comprehensive cooperative partnership, with the occasion of marking the 40th anniversary of diplomatic relations as a fine opportunity.Liu put forward a three-point proposal for deepening exchange and cooperation in humanistic sectors between China and Chile:Firstly, efforts should be made to further strengthen bilateral cooperation in scientific-technological innovation, and give a full play to the role of bilateral cooperation mechanisms including the mixed committee on science and technology, in order to upgrade bilateral scientific-technological cooperation.Secondly, rich and colorful cultural exchange and cooperation should be developed in an in-depth way. In this endeavor, the two countries need to keep exploring new ways and channels of cooperation, in order to promote China-Chile cultural exchange and cooperation to a higher level.And thirdly, efforts should be made to further increase bilateral educational exchange and cooperation to promote China-Chile friendship.On the same day, Liu also met with the Chilean Education Minister Joaquin Lavin and Director of Chilean National Science and Technology Commission Jose Aguirela, exchanging views with them on strengthening cooperation in the fields of education and science and technology between China and Chile.Liu also attended a cerenomy for signing documents on bilateral educational and scientific-technological cooperation.
BEIJING, Dec. 21 (Xinhua) -- Chinese Vice Premier Li Keqiang has called for strengthening efforts in ecological and environmental protection as the country strives for economic restructuring and improving people's livelihoods.Li made the remarks Monday at a meeting on the application of research results on China's environment. The research project was launched three years ago to map out a macro environmental strategy for the country.Li visited an exhibition to show the research results of hundreds of experts and scholars in the environment sector, saying that the findings should be used as a source of reference in the country's next five-year pprogram (2011-2015) to promote environmental protection.Li then exchanged views with experts during a meeting, saying that China had made achievements in the environmental protection efforts in its 11th five-year program period (2006-2010), having fulfilled major pollution control targets.Chinese Vice Premier Li Keqiang (C), shakes hands with an expert attending a meeting on the application of research results on China's environment in Beijing, capital of China, Dec. 20, 2010. The research project was launched three years ago to map out a macro environmental strategy for the country. According to Minister of Environmental Protection Zhou Shengxian, during another meeting on Tuesday, the sulfur dioxide index is expected to drop 14 percent in 2010 compared with the 2005 level.Also, the index of Chemical Oxygen Demand (COD), a measure of water pollution, is expected to decrease 12 percent.China's 11th five-year program set out to reduce COD and sulfur dioxide levels by 10 percent over this period.However, Li stressed that China faced more pressure in environmental protection than any country in the world, since it was a developing nation striving for modernization and with a huge population of 1.3 billion.China should innovate its development mode and endeavor to make the two, development and environmental protection, promote each other, he noted.Li said the country should set up a people-oriented conception in environmental protection efforts, and carry out major projects regarding sewage disposal, waste processing and water environment in urban areas.Efforts would also be devoted to prevent and treat rural area's pollution problems and ensure the safety of drinking water and food, Li said.Li called for improving related laws and regulations and fully completing the government's responsibility in the environmental protection sector.
BEIJING, Dec. 17 (Xinhua) -- China on Friday responded to Japan's new defense guidelines, saying China had no intention of threatening anybody.Foreign Ministry spokesperson Jiang Yu made the remarks when responding to a question on the subject."A certain country has no right to act as a representative of the international community and make irresponsible remarks on China's development," she said.Japan adopted the National Defence Programme Guidelines Friday. Media reports said the guidelines claimed China's military development and lack of transparency were matters of concern to the region and international community, and urged nations to encourage China to act responsibly.China unswervingly follows the path of peaceful development, and its defense policy is defensive in nature, Jiang said, adding that China poses no threat to anybody."The fact is that China's development since its reform and opening up, has brought huge opportunities of common prosperity to the world, including Japan," Jiang said.
BEIJING, Nov. 14 (Xinhua) -- Chinese Vice Premier Li Keqiang has urged more efforts be made to accelerate economic restructuring to achieve sustainable development amid concerns of global uncertainties."The global economy is still facing great uncertainties and has not shaken off the deep impact of the financial crisis", Li wrote in an article Xinhua received Sunday, calling for "deep understanding" of the proposal for national development in the next five years.The Communist Party of China (CPC) Central Committee's Proposal on Formulating the 12th Five-year Program (2011-2015) on National Economic and Social Development was issued on Oct. 27 after it was adopted at the Fifth Plenary Session of the 17th CPC Central Committee, which ended Oct. 18.The imbalance of the overall world economic recovery remains and trade protectionism is on the rise, Li wrote in the article while calling for correct understanding of both domestic and international situation.Further, Li warned of the potential damage that will be caused by some governments' excessive debt, noting that some major economies continue their expansionary monetary policies and are pumping enormous liquidity into markets to boost their economic recovery, which may spur turbulence in the global financial market and push up commodity prices.Additionally, the inflow of hot money will affect emerging economies, he said."The world economy is growing slowly and the structure of global demand is changing, which puts new pressure on China in its efforts to stabilize and expand exports and maintain a stable and relatively rapid economic growth," Li wrote.The next five years will be crucial for building a moderately prosperous society in an all-round way, he said."The transformation of the economic development mode brooks no delay, and the key for the transformation is to achieve it at an accelerated speed and with practical effects," he said.Only by transforming the development mode can problems of imbalance and unsustainability be resolved, Li said.The government will work to boost domestic demand, consumption in particular, as a long-term strategy to maintain healthy and stable economic development and transform the economic development pattern, he wrote.It is imperative to keep investment at an "appropriate growth rate" and encourage private investment to expand domestic demand, he said.Efforts should also be made to promote balanced urban-rural development and scientific innovation to upgrade industries.Li said China will also move ahead with "vigorous but steady" political reform while pushing forward economic restructuring.The government will reduce its intervention in economy and let market play the role in resource distribution, Li wrote. He also called for stepping up fiscal and taxation reform and strengthening financial supervision to prevent systematic financial risks.The country will open more fields to the outside and enhance opening up in the inland area, he said.He also called for participation in global economic governance and regional cooperation, speeding up the implementation of free trade zone strategy and opposing trade protectionism, so as to push for the development of a just and rational international economic order.