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BEIJING, Feb. 22 (Xinhua) -- China's exports may grow by 8 percent in 2010 but problems still existed with getting exports back to pre-crisis levels, according to a statement posted Monday on the website of Ministry of Industry and Information Technology (MIIT), quoting minister Li Yizhong.It was unlikely for China's exports to recover to pre-crisis levels in the short-term, Li said during a Sunday meeting attended by MIIT officials, attributing the slow rebound to rising international protectionism and the fact that Chinese manufacturers relied too much on overseas markets.The 8-percent growth forecast was still far below 2008's 17.2-percent increase, according to customs data.Despite overtaking Germany as the world's largest exporter, China saw its exports contract 16 percent year-on-year in 2009 as overseas demand slumped.Exports in January this year grew 21 percent on lower comparison bases a year ago due to the global economic downturn and less working days as the Lunar New Year holiday fell in January last year, said the General Administration of Customs earlier this month.Li also stressed that China should keep the yuan stable in a speech addressing the current domestic economic situation during the meeting, as international pressure on China to strengthen the yuan was intensified.

BEIJING, Feb. 3 (Xinhua) -- Chinese economists are again concerned about the value of the country's dollar-denominated assets after the U.S. government's budget plan unveiled Monday forecast a record deficit for 2010.The economists are worried that, if the Congress approved the budget plan, the U.S. federal government will issue more bonds and print more money to finance the deficit, which may prompt dollar depreciation. Dollar depreciation erodes the value of China's holdings of dollar-denominated assets.The same fears took hold almost one year ago when the U.S. government said it would issue up to 2.56 trillion U.S. dollars of treasury bond debt to stimulate the economy to get through the recession.This time the budget deficit is larger. The Obama administration on Monday proposed a budget of 3.83 trillion U.S. dollars for fiscal year 2011 with a forecast deficit of 1.56 trillion U.S. dollars in 2010.The planned fiscal deficit is 10.6 percent of gross domestic product (GDP) - up from a 9.9 percent share in 2009 - the largest deficit as measured against GDP since the second world war.He Maochun, director of the Center for Economic Diplomacy Studies at Tsinghua University, said the deficit would be financed by those holding U.S. dollar-denominated assets with the main channel to transfer the risks caused by the deficit being the issuance of U.S. treasury bonds.The U.S. is already in enormous debt, with Treasury data showing public debt topping 12 trillion U.S. dollars in November last year, the highest ever.To pay for the deficit, the U.S. federal government will borrow 392 billion dollars in the January to March quarter of 2010, according to a Treasury Department statement released Monday. It will then issue 268 billion U.S. dollars of treasury bonds in the second quarter.Experts said the record deficit suggests the federal reserve will continue to flood more money into the market. The massive issuance of treasury bonds, the large fiscal deficit and the printing of the dollar will prompt further declines in the value of dollar, they said.In 2009, the greenback depreciated against major currencies by 8.5 percent, according to China's State Administration of Foreign Exchange (SAFE).China is the biggest foreign holder of the U.S. government debt. As of the end of November last year, China held 789.6 billion U.S. dollars of U.S. treasury bonds. Moreover, more than 60 percent of China's 2.399 trillion U.S. dollar stockpile of foreign exchange reserves - the world's largest - is in dollars.Cao Honghui, director of the Financial Market Research Office of the Chinese Academy of Social Sciences (CASS), a government think tank, said the massive U.S. deficit spending and near-zero interest rates would erode the value of U.S. bonds.The U.S. government should not transfer the problems of enormous debt to other nations or regions that are creditors like China, he added.The SAFE said in a statement in December 2009 that China would diversify its foreign exchange reserve holdings - both currencies and securities - to reduce risk.Liu Yuhui, an economist with the CASS, said late last month China may scale back its purchases of U.S. debt on concern the dollar will decline.China trimmed its holdings of U.S. government debt by 9.3 billion U.S. dollars in November last year - the biggest cut in five months - taking them down to 789.6 billion U.S. dollars.Ding Zhijie, associate dean at the finance school at the University of International Business and Economics, said China had been securing its investment value by using its foreign exchange reserves for imports and acquisition in 2009."More reserves should be used for investment in materials and resources, which can reduce the risk," he said, adding that he expects the purchasing spree to continue this year.The deficit is expected to ease slightly to 1.3 trillion U.S. dollars in 2011, but that still represents 8.3 percent of 2011 GDP.But Ding said it is necessary for the U.S. to keep its powerful fiscal stimulus policy in place, as the economic recovery is fragile and remains uncertain.The U.S. economy shrank 2.4 percent in 2009, but the U.S. government is projecting GDP growth of 2.7 percent in 2010 and an unemployment rate average of 10 percent.Zuo Xiaolei, chief economist at China Galaxy Securities, said the U.S. had no choice but to rely on massive government spending to ensure the economic recovery.The budget deficit will pump money into the economy and generate jobs, which in turn will generate greater tax revenue that can help pay off the debt, Zuo said."But there is still a risk the policy will fail and that debt will grow beyond the government's ability to pay," in which case the entire global recovery will be threatened.

MUNICh, Germany, Feb. 5 (Xinhua) -- Speaking highly of the deepening China-Europe relations over the past decades, Chinese Foreign Minister Yang Jiechi on Friday told the Munich Security Conference that a brighter future of bilateral ties calls on both sides to embrace an open and inclusive spirit.With this year marking the 35th anniversary of diplomatic relations between China and the European Union, the Chinese top diplomat said China and the EU have established "a comprehensive strategic partnership that is all-dimensional, wide-ranging and multi-tiered" and the changing world "has brought China-EU relations to a new historical starting point.""To achieve a brighter future (of China-EU relations), we must manage our relations from a strategic and long-term perspective," Yang said. "We must respect each other, treat each other as equals, and accommodate each other's core interests and major concerns."He also expressed the hope that Europe will see China "in a more objective and sensible light" and recognize that China's development is not a challenge but an opportunity."We do not expect China and Europe to see eye to eye on each and every issue, and we need not be afraid of our differences," he added."As long as we both embrace an open and inclusive spirit, we will have more consensus than differences and more mutual benefits than frictions, and cooperation will be the defining theme of China-EU relations," Yang said.As to the host country of the security conference, Yang said " China-Germany ties have maintained dynamic growth.""In the face of the complex international situation and various grave challenges, China and Germany must bear in mind the larger and long-term interests and further enhance mutual trust and cooperation," he said, adding that China is ready to join Germany "in a common effort to elevate our partnership of global responsibility to a higher level."It was the first appearance of a Chinese foreign minister in the Munich Security Conference's 46-year history.

BEIJING, Feb. 12 (Xinhua) -- Chinese police nationwide were urged Friday to tighten security and step up safety overhaul during the Chinese Lunar New Year and be "ready to handle emergencies to prevent serious accidents."A circular from the Ministry of Public Security told local police authorities to increase scrutiny of fireworks parties, trade fairs, lantern shows, and temple fairs during the Spring Festival holiday which starts Saturday.It said the police should assist in keeping public and traffic order around large events' venues and be ready to handle crime and emergencies.Efforts should be made to strengthen security measures around train stations. Police authorities must release "safety tips" to the public through radio, newspapers and cell phone messages, it said.More than 10,000 large events, including traditional temple fairs, will be held across the country during the seven-day holiday, with more than 320 events expected to attract more than 10,000 people each.The latest ministry statistics show police solved nearly 1,200 homicide cases and 915 human trafficking cases last month.Police also arrested nearly 470 suspects for using telephones to scam or defraud people in January, saving 3.45 million yuan (507,000 U.S. dollars) in economic losses.Last month, the police busted nearly 2,000 bases for illegal fireworks' manufacture, sale, or transportation.The Spring Festival, or the Lunar New Year, falls on Sunday. It is the most important annual Chinese festival, with family reunions, much fun and plenty of eating.

BEIJING, March 3 (Xinhua) -- China faces potential challenges in maintaining food security despite years of good harvest, a legislator said here Wednesday.In some areas, farmland is often used illegally for non-agricultural purposes or abandoned by farmers who move to work in cities, posing the most serious threat to grain production, said Liu Hui, who is also deputy director of the administration of grain in the eastern Anhui Province.Other challenges include natural disasters, low scienctific and technical level in grain production, backward infrastructure, and low grain prices that dampen the enthusiasm of both farmers and local governments.The deputy to the National People's Congress (NPC), or the top legislature, made the remarks two days before the NPC annual session starts.Liu suggested that the government should clear the obstacles in the grain production and circulation and increase financial input in major grain producing areas to prevent possible decline in output.China's grain output reached 530.8 million tonnes in 2009, exceeding 500 million tonnes for the third consecutive year, data from the National Bureau of Statistics revealed.

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