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BEIJING, June 30 (Xinhua) -- Taiwan authority opened up the island to Chinese mainland investment Tuesday with 100 categories of manufacturing, service and infrastructure sectors in the initial opening-up list. The move marks a historic breakthrough of decades-long hopes for two-way investments across the Taiwan Straits. Under two new regulations in effect Tuesday, mainland individuals, companies and institutions can set up branch offices, wholly-owned or joint-venture companies on the island. They have to get approval from Taiwan economic affairs authority in advance, according to the regulations. Investment from firms based outside the Chinese mainland, in which mainland ownership is more than 30 percent, will also be regarded as mainland investment in Taiwan, the regulations said. In the initial phase, the Taiwan authority allows mainland investment in 64 categories in manufacturing sector, 25 categories in service sector, and 11 categories in infrastructure sector on the island. Mainland investment would "help Taiwan's economy prosper" and make international investors more confident in Taiwan market, said John Chen-Chung Deng, deputy head of Taiwan's economic affairs authority, at Tuesday's press conference. The investment would help increase industry capital in Taiwan and make its financial market more vigorous, he said. Through two-way cross-Straits investments, the two sides could jointly explore mainland and international markets, he told the press conference. The formalization of cross-Straits investment is a long-term objective, he said. The opening-up will advance in a "gradual" way and "will be expanded as long as the initial investment bears fruits." The Taiwan authority planned to send a team to the mainland to attract investment in the second half of this year, he said. Taiwan welcomes mainland companies to conduct investigations for investment on the island. For the convenience of mainland investors in Taiwan, the relevant authority in Taiwan has also set down regulations on issues including medical service, education, financial need and house purchasing for both the investors and their family, according to the official. BREAKTHROUGH IN TWO-WAY INVESTMENT Experts said the move marks the end of the one-way flow of capital from Taiwan to the mainland, and is a basic indicator of the normalization of economic and trade ties between the two sides. Zhang Yansheng, director of the Institute of Foreign Trade under the National Development and Reform Commission (NDRC), said the influx of mainland capital would greatly boost Taiwan's gross production value, tax income and employment. The investment would not only benefit Taiwan companies harshly hit by the international financial turmoil, but also enhance competitiveness of mainland companies, he said. Liu Xiaohong, deputy general manager of Quanjude (Group) Co. Ltd., a Beijing-based company that specializes in the famous Peking roast duck, said the newly announced regulations have cleared major obstacles and will accelerate the company's pace to open outlets in Taiwan. Direct transport, postal service and trade was totally cut off between the two sides since the Chinese civil war ended in 1949. On Jan. 1, 1979, the Standing Committee of the National People's Congress, or the top legislature, called for an early realization of the three direct cross-Straits links on transport, mail and trade in its "Message to Compatriots in Taiwan". After 1979, the mainland allowed Taiwan products to enter at lower tax rates or tax-exemption. In July 1988, the State Council, or the Cabinet, issued regulations encouraging Taiwan compatriots to invest on the mainland. The mainland has been the largest trade partner of Taiwan since 2003, with annual trading volume surpassing 100 billion U.S. dollars. Tuesday's announcement came about two months after the mainland and Taiwan reached a historic consensus on allowing mainland companies to invest in Taiwan during talks between the two sides top negotiators on cross-Straits relations.
BEIJING, June 1 (Xinhua) -- Chinese Vice Premier Zhang Dejiang Monday called on local governments and government agencies to improve production safety and crack down on illegal practices. The number of accidents and casualties had fallen this year, Zhang said in a teleconference aimed to improve production safety. However, some industries still had potential dangers, he said. Zhang urged authorities to enhance work safety supervision and remove hidden dangers at work places to avoid accidents. Any illegalities, especially in major industries such as coal mining, construction, and fireworks production, must be eliminated.

MOSCOW, June 1 (Xinhua) -- The BRIC countries (Brazil, Russia, India and China) are able to realize rapid economic growth after the current financial crisis tides over, said Chinese and Russian experts during a Beijing-Moscow televised conference on Monday. The emerging economies, represented by the BRIC countries, are playing a stabilizing role amid the ongoing crisis, said Chen Fengying, director of the Institute of World Economy Studies in China's Institute of Contemporary International Relations. Chen said the BRIC countries, which could contribute much more to the global economic growth this year, may further lead the world economy in a post-crisis era, should they realize the industrial restructuring and the transition of economic growth patterns. Judging from macroeconomic indicators such as international balances, scales of debt and deficit, the BRIC countries may weather through the financial crisis earlier than the major developed countries, said Lev Frainkman, an expert from Russia's Institute for the Economy in Transition. These countries also have ample reserve funds to implement their anti-crisis measures, said Frainkman. The BRIC summit scheduled to be held in mid-June in Yekaterinburg, Russia, has displayed BRIC countries' cooperative willingness to jointly ward off the crisis, said Sergei Alexashenko, director of Macroeconomic Studies at Russia's Higher School of Economics. BRIC countries may integrate respective resources to seek cooperation in aircraft manufacture and software development, he added. Li Yongquan, deputy director of the Euro-Asian Social Development Research Institute at China's Development Research of the State Council, said of all the bilateral and multilateral cooperation within the framework of the BRIC countries, he particularly expects a great prospect for China-Russia cooperation. Li suggested China and Russia further exploit cooperative potentials in four spheres such as technologies, natural resources, human resources and marketing.
BEIJING, May 8 (Xinhua) -- China's top economic planner Friday announced details of the country's new oil pricing mechanism, for the first time after the new pricing system kicked in at the beginning of this year. In a statement on its website, the National Development and Reform Commission (NDRC) said China would adjust domestic fuel prices when global crude prices reported a daily fluctuation band of more than 4 percent for 22 working days in a row. The commission said refiners would enjoy "normal" profit when global crude prices are below 80 U.S. dollars per barrel, but would face narrower profit margins when the crude prices rise above 80 U.S. dollars per barrel. However, fuel prices would not go further up, or only be raised by a small margin, when crude prices rise above 130 U.S. dollars per barrel, and fiscal and tax tools would be used to ensure supplies, the NDRC said. Light, sweet crude for June delivery rose 37 cents a barrel to settle at 56.71 U.S. dollars on the New York Mercantile Exchange Thursday after reaching a six-month high of 58.57 dollars. Crude prices staged strong rally on news of upbeat economic data in the United States, rising more than 10 percent in two weeks. The NDRC statement also came a day after it denied an online report claiming imminent price hike. C1 Energy, an energy information website, Thursday reported that the Chinese government would raise fuel prices as of midnight Thursday, but said later the price adjustment had been canceled, with reasons unknown. Xu Kunlin, deputy head of NDRC's pricing department, said the new oil pricing mechanism is not to be followed "word by word" without any flexibility, when asked whether the commission would soon adjust fuel prices at a press conference held in Beijing. "There has been pressure to raise domestic fuel prices as crude prices continued to rise," Xu said, "however, the final decision will depend on developments in crude prices in coming days." Friday's statement did not say how the global crude prices would be measured. Xu declined to reveal details on the basket of crude prices for evaluating international price changes, and said such details would remain a secret in a bid to prevent speculation. The NDRC said in the statement that the government would continue to control fuel prices at the current stage, because of insufficient market competition and imperfect market mechanisms. However, fuel prices would eventually be determined by market forces only in the long run under the new pricing mechanism, which is aimed to bring in more market forces, said the NDRC. China's fuel prices, with taxes included, are at a relatively lower level among major oil importers, said the NDRC. Domestic fuel prices are lower than in Japan, the Republic of Korea, India, Mongolia, and many European countries, but higher than in oil exporters in the Middle East and than some cities in the United States, according to surveys by the NDRC. China's retail fuel prices vary in different regions. Currently, gasoline 93, the most commonly used type of gas, sells for 5.56 yuan (81.8 U.S. cents) per liter in Beijing.
BEIJING, May 6 (Xinhua) -- Chinese President Hu Jintao and his U.S. counterpart, Barack Obama, on Wednesday discussed bilateral relations and the A/H1N1 flu epidemic during a telephone conversation. Hu recalled that during their meeting at the Group of 20 summit in London in early April, he and Obama agreed to work together to build a positive, cooperative and comprehensive relationship in the 21st century. The two leaders also reached extensive consensus on the establishment of the mechanism of China-U.S. Strategic and Economic Dialogues, joint efforts to tackle the international financial crisis, and enhanced coordination and cooperation on major global and regional issues, Hu said. "Now, both countries are seriously implementing the consensus," the Chinese president said. "China is willing to work with the United States to push for a healthy and stable development of China-U.S. relations," he said. Obama, for his part, said the meeting with Hu was important because it outlined the future development of bilateral cooperation and made a good start on the China-U.S. strategic dialogue. The United States appreciated China's efforts to promote bilateral relations, he said. The Chinese president expressed sincere condolences over the A/H1N1 flu epidemic that has hit parts of the United States, and said the Chinese government has started emergency measures to prevent a spread of the disease. "We are willing to keep contact with the World Health Organization, the United States and other parties concerned, and strengthen cooperation to jointly confront this public health challenge," Hu said. Obama said his country has adopted effective measures against the disease and will continue to keep a close eye on the outbreak. The U.S. president said he was looking forward to meeting with Hu again during a meeting of leaders of the Group of Eight nations and developing countries in Italy. Obama said he was also looking forward to visiting China. The two leaders also exchanged views on such issues as the situation on the Korean Peninsula and the situation in South Asia.
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