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View of a steel-making factory on the outskirts of Shanghai February 1, 2007. [Reuters] New export taxes on polluting and energy intensive industries will help reshape how China's economy grows, but alone are not enough to resolve its trade imbalances with the United States, a top Commerce official said on Sunday. Beijing said last week it would impose or increase taxes on a range of metal exports in an effort to control shipments of high-energy products and ease its huge trade surplus. "You cannot expect to resolve the trade balance by simply curbing export patterns," Vice Commerce Minister Gao Hucheng said on the sidelines of a conference when asked about the changes. "These products make up a relatively small portion of exports. But the point is that this reflects changes in trade and economic growth, which will have advantages in the short term and even greater significance in the long term." The announcement of the tax changes came ahead of a "strategic economic dialogue" in Washington between high-level U.S. and Chinese officials at which China's huge trade surplus was a major bone of contention. But the high-level economic talks failed to ease trade rifts between the two economic giants, risking rising tensions ahead of the race for the U.S. presidency. Chinese Vice Premier Wu Yi and a delegation of ministers left the U.S. capital on Friday, after days of talks that made modest advances but were overshadowed by a lack of concrete progress on the key issue of China's currency. From June 1, China will impose a tax of between 5 and 10 percent on exports of over 80 types of steel products, a bone of contention with both the United States and Europe. Exports would not slow down much this year since most contracts had been signed already, but next year could see a big fall-off, said Li Xinchuang, vice-president of the China Metallurgical Industry and Research Institute.

Wuhan -- China's first bank-invested trust company is officially set up in Wuhan, capital of central China's Hubei Province, on Sunday.The new trust company is held by the Bank of Communications (BOCOM), China's fifth largest lender, and Hubei provincial finance department, which control 85 percent and 15 percent of the total shares respectively.The BOCOM invested 1.2 billion yuan (about US0m) to buy the shares of the Hubei international trust and investment company, the first commercial bank investment in a trust company approved by the China Banking Regulatory Commission.Jin Dajian, chairman of the new company named "jiaoyin-guoxin", or BOCOM-International Trust, said the company would focus on "professional wealth management".Jin called the establishment of the new trust company "a breakthrough for China's trust industry", given that the country's law on commercial banks, effective since 1995, did not allow commercial banks to make trust investment.The regulation was not lifted until the end of last year, when the China Banking Regulatory Commission encouraged financial institutions, including commercial banks, to acquire trust companies.The BOCOM, a large state-owned commercial bank, was established in 1908, and the Hubei international trust investment company was founded as a non-banking financial institution under Hubei provincial government in 1981.

KUNMING -- Fourteen people were killed and six others were injured after a bus veered off a road and plunged into a ravine in southwest China's Yunnan Province, a local government official confirmed on Thursday.The bus with 20 passengers on board veered off a highway in Maguan County of Wenshan Autonomous Prefecture of Zhuang and Miao Nationalities at 3:30 p.m. Wednesday, said Liu Qingfu, deputy head of the publicity department of Wenshan prefecture.Fourteen people died at the scene. The injured have been rushed to a nearby hospital and are reportedly out of danger.The cause of the accident is still being investigated.

Clashes erupt between members of the ethnic Chinese community and Italian riot police in Milan April 12, 2007. [Reuters]China has made representations to the Italian government after at least 10 Chinese nationals were injured during a clash with local riot police in Milan on Thursday, the Foreign Ministry said on Friday. "We hope the Italian side deals fairly with the issue and seriously considers the justified demands of local Chinese nationals and takes real measures to protect their legitimate rights and interests," a statement on the ministry's website said. The conflict was sparked by a dispute over parking between a local Chinese woman and a police officer. The woman was detained after the argument turned into a physical clash, according to the Foreign Ministry. The situation escalated when hundreds of local Chinese protested over the detention of the woman, which led to the conflict. Of the Chinese nationals injured in the clash, five have been released from hospital after treatment, the ministry said. The scuffle broke out in the city's busy Chinatown area. Protesters reportedly threw plastic bottles and rubbish bins at police armed with batons. "It is not right for a violation of road regulations to cause this," Milan's mayor Letizia Moratti was quoted as saying. "This cannot be justified." Protesters complained about the police violence, with some saying one of the demonstrators had been pistol whipped. The ministry said in the statement that the situation had eased. 

China's quality watchdog cracked 23,000 cases of fake and low-quality food from December 2006 to May 2007, involving 200 million yuan (26 million U.S. dollars). A total of 180 food manufacturers were shut down during the six months for making substandard food or using unedible materials for food production, said Han Yi, a senior official with the General Administration of Quality Supervision, Inspection and Quarantine, at a press conference on Tuesday. The administration launched the nationwide fight against illegal food production and processing in December last year, mainly targeting food makers in the countryside and food for everyday consumption, including baby milk powder, rice, wheat powder and meat products. In 2006, China's industrial and commercial authorities ferreted out 68,000 fake food cases and withdrew 15,500 tons of substandard food from the market, according to the State Administration for Industry and Commerce. Forty-eight cases were handed over to judicial departments.

来源：资阳报