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China, with a record .2 trillion of foreign-exchange reserves, will keep the "bulk" of its US dollar holdings because the currency is one of safest investment options, a People's Bank of China assistant governor said. The dollar remains "important" because trade and foreign direct investment is conducted mostly in the currency, Yi Gang told delegates at a meeting that was closed to the media at the World Economic Forum in Singapore. Asian central banks will continue to hold most of their reserves in dollars, he said. "Safety, return and liquidity are the three most important elements that people should consider when they talk about reserves," Yi said in a recording of the discussion that was obtained by Bloomberg News. "As far as we're concerned, the serious reduction of the dollar reserve is a small probability," he said, adding that any adjustments to its dollar holdings will be "incremental." China's gross domestic product expanded 11.1 percent in the first quarter, making it the world's fastest-growing major economy, led by sustained demand for its exports to the US and other trading partners. Diversification of the nation's foreign-exchange reserves will be gradual and won't hurt the dollar or financial markets, Market News International said last month, citing Ding Zhijie, one of five advisers to the reserves agency's committee. 'Gradual Process' China's trade surplus, which the Asian Development Bank estimated will climb by 45 percent to a record 7 billion next year, has sparked calls for further gains in China's yuan. Some US lawmakers have said that the yuan was undervalued by 40 percent to make China's exports cheap and pledged trade sanctions as punishment. The central bank expects the yuan exchange rate will gradually move toward a "market-oriented direction," Yi told reporters after the meeting Monday. The currency has risen about 8.6 percent since the dollar link was abandoned in July 2005. "The central bank of China has the responsibility to keep the exchange rate at more or less a stable level," Yi said. "The mechanism is more toward a market-oriented direction."

BEIJING - The Chinese Academy of Social Sciences (CASS), the country's top think tank, published its eighth annual report on Monday and introduced a new international strategy.The report - "China's Modernization 2008" - proposed a brand new concept, the so-called "Peace Dove Strategy".The strategy, with the principle of "Follow the UN Charter and Promote World Peace", calls for the building of a favorable international environment for China's modernization.The "Peace Dove Strategy" makes the United Nations the head of the Dove.Asian nations are the foreside; the Asia-Pacific Economic Cooperation is the eastern wing, and the proposed "Asia-Europe Economic Cooperation", which is upgraded from the existing Asia-Europe Meeting, is the western wing.South America, Oceania and Africa bring up the rear.The strategy, which centers on Asia and faces the world, calls for cooperation of all member nations on an equal, mutually beneficial basis.Under the strategy, China will optimize the structure of its international modernization strategy, increase its national capacity in international modernization, and improve the international environment for the country, according to He Chuanqi, head of the CASS Center on the Study of China's Modernization.The strategy was created drawing upon international experience of the past 300 years and the history and realities of China's international modernization, the official said.The report has been published and distributed as a single volume by the Beijing University Publishing House.

CHENGDU: Thick fog continued to blanket parts of western and central China Sunday, causing traffic accidents, flight delays and highway closures.Plunging visibility from the bad weather delayed more than 150 flights and left 12,000 passengers stranded Sunday in the Shuangliu International Airport in this capital of Sichuan Province, airport officials said.The airport was closed for nearly nine hours Sunday morning before a flight to Tibet took place at 11:10 am."Full operations did not return to normal until more than an hour later when the first flight from Shenzhen in Guangdong Province landed here," airport publicity department official Liu Gang told China Daily."It was the second day visibility in the airport had been at about 10m."On Saturday morning, a heavy fog fell on Chengdu, shrouding its downtown areas and six suburban counties with a visibility of under 50m.The airport itself was closed for eight hours that day, with 121 flights delayed and 11,000 passengers stranded.Sichuan weather bureau deputy chief Zhong Xiaoping said environmental pollution was a major cause of the fog.Zhong advised citizens to take buses more often, save energy, cut car exhaust, and play a part in the recycling of waste materials.More than 10,000 vehicles were stranded from the fog on highways Sunday, about 4,000 more than the day before, the Chengdu Transportation Bureau said. It advised residents to take trains in the next few days.He Ping, a 49-year-old company employee, drove from Deyang in northern Sichuan to Chengdu through the Chengdu-Mianyang Expressway Sunday afternoon."I've driven for nearly 20 years and have never seen such heavy fog before. I could not even see the line separating the fast lane from the slow one," He told China Daily.Meanwhile, heavy fog also persisted in Hebei, Henan and Shaanxi provinces for consecutive days. The poor visibility forced highways to close and delayed flights Sunday.The Xi'an-Baoji Expressway in Shaanxi Province was closed on Saturday as visibility in some sections was less than 2m.Meteorologists also attributed the fog to a combination of high humidity, lower temperatures and low wind speeds in the affected regions.Xinhua contributed to the story

BEIJING - The National Grid of China said power could be restored partially within the day in the worst-hit region in central China's Hunan Province, ending the eight-day blackout caused by snow.Local residents buy candies for the upcoming Spring Festival in Chenzhou, Central China's Hunan Province, February 1, 2008. Power supply in Chenzhou City has been cut off during the past eight days, leaving thousands of households in dark and coldness. [Xinhua] "Many power facilities in Hunan were damaged due to repeated extreme weather changes," said Yin Jijun, deputy director of the international liaison department of the National Grid. "As the weather deteriorated again, the regional power grid, in particular the southern grid in the province, is facing acute challenges."A new round of snow started to hit central, south and east China regions on Friday, adding to the woes caused by previous snowfalls.Hunan is one of the hardest-hit areas for the past three weeks. Power supply in Chenzhou City has been cut off during the past eight days, leaving thousands of households in dark and coldness. Hengyang and Yongzhou cities also experienced blackouts in some areas.To address the situation, Yin said the National Grid is working all out to ensure security of the main power network in southern Hunan, especially in Chenzhou."We will strive to partially restore electricity supply in Chenzhou on Saturday," Yin said.

来源：资阳报