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China's consumer price index is expected to rise about 3.3 percent in 2007, moving above the government target of three percent, the State Information Centre said on Wednesday. The forecast came after China's consumer price index (CPI) hit a 27-month-high of 3.4 percent in May, driven by an 8.3 percent rise in food prices, from 3.0 percent in April and 3.3 percent in March. "Consumer inflation in 2007 is to be pushed up by food price increases, and food price increases are the result of a surge in meat, poultry and egg prices," the think-tank said in a report published on the China Securities Journal. The centre is a research body under the China National Development and Reform Commission, China's top planning agency. The report said the rise in meat and other foods would not slow considerably until the last quarter of this year because of high grain and cereal prices. But it did not provide any forecast on policy moves. A surge last month in the price of pork, a staple meat on Chinese dinner tables, raised concerns about inflation. After the May inflation data was released last week, Premier Wen Jiabao said the government was prepared to tighten policy further to restrain the economy and inflation. Various ministries also scrambled to respond in an effort to ease public worries about inflation. The Ministry of Commerce said pork prices in major Chinese cities had dropped slightly in the first 10 days of June. But according to the report, meat and egg prices could rise even further in coming weeks, following a 26.5 percent surge in meat prices in May. Besides food, inflation pressures are under control, the report said. Prices of industrial products are unlikely to rise significantly, and labour cost increases in China have yet to be reflected in consumer inflation. It said the pace of inflation in 2007, although it is exceeding Beijing's target, is still within a range the government can control. Monetary tightening and yuan appreciation in China are expected to have some cooling effects on inflation.

BEIJING -- China will continue to spend more on education next year and spread the free nine-year compulsory education to urban children, said finance minister Xie Xuren.The government would continue to improve the funding system to guarantee free nine-year compulsory education currently enjoyed by 150 million rural children, while spreading it to their urban counterparts next year, Xie told an annual conference of the Ministry of Finance in BeijingStarting from the spring term, China would increase the funding for free textbooks used for the national compulsory courses, and the local governments would provide more money for free textbooks for local compulsory courses, he said. Local governments would also provide scholarships to cover the living costs of boarding students from poor families. The central government would provide half of the education funding for areas in Central and West China, while provincial governments in those areas would cover the rest of the costs.Local governments in East China would provide all education fees with some supplementary funding from the central government.Xie said the government would issue new standards for per capita expenditure of students in primary and middle schools, and put those standards into effect within the next two years.He said the allowance for maintenance and refurbishing of rural schools in Central and West China would also be raised with special financial support to high-altitude and cold areas.In addition, the government would continue free education for students taking courses for teaching careers at normal schools and provide scholarships for poor undergraduates and students at vocational schools.According to Xie, the first 11 months saw  557.8 billion yuan (about 74.3 billion US dollars) of fiscal expenditure used for education, up 32.7 percent compared with the same period last year.As a result of the implementation of scholarships for the poor, about four million college students and 16 million secondary vocational school students had benefited.

A top energy team under China's cabinet is drafting a strategy to increase access to sustainable energy among the rural poor.The plan will be based on research of other countries' experiences and is scheduled for release next year, the United Nations Development Program (UNDP) announced on Friday.The UN agency will help the Energy Leading Group affiliated with the State Council to attract global energy experts to work on the draft."We want to help the (Chinese) government come up with a viable rural energy strategy, which may serve as a role model for other developing countries," Shen Yiyang, program manager of UNDP's Energy & Environment Team, told China Daily.Details of the draft's contents were unavailable.Ma Xiaohe, vice-president of the Academy of Macroeconomic Research under the National Development and Reform Commission, confirmed that an overall rural energy strategy is being developed.Energy demand in rural areas is expected to increase rapidly in the run-up to 2030, he said.Rural energy consumption is expected to reach between 1 and 1.4 billion tons coal equivalent by 2015, compared to 370 million tons in 2000.The supply of commercial energy - electricity, coal and natural gas - is expected to meet two-thirds of rural areas' energy demand. Energy sources located in the countryside will supply the other third, Ma said.Currently, renewable energy accounts for only a small amount of rural energy supplies. But according to Ma, green energy will reach 400 million tons of coal equivalent by 2020.The country has set a goal of raising the ratio of renewable energy in the total energy supply to 15 percent by 2020, compared to the present 8 percent.

BEIJING - China's currency, the yuan, hit a new high against the US dollar on Thursday, following an overnight key interest rate cut in the United States.The yuan, also known as the renminbi, went up 145 basis points from the previous day to a central parity rate of 7.1853 yuan to one dollar, breaking the 7.19 mark.The Federal Reserve on Wednesday cut US interest rates by a bold half-percentage point as part of its efforts to shore up economic growth.The move came just eight days after the US central bank slashed rates by three quarters of a percentage point, leading the dollar to weaken against other major world currencies.The Chinese currency had appreciated against the greenback by about 12 percent since a new currency regime was imposed in July 2005 to revalue and de-peg it from the dollar.It had climbed 6.9 percent against the dollar in the past year, but some US critics say it remains undervalued, giving Chinese exporters an unfair advantage and resulting in the massive trade imbalance between the two countries.China was not against revaluation of the yuan, but opposed "excessively rapid" appreciation that was inappropriate to its national conditions, Commerce Minister Chen Deming said last month.Premier Wen Jiabao also said China would improve the yuan's exchange rate mechanism in a controllable and gradual manner, let the market play a bigger role in the mechanism and enhance the currency's flexibility.

A pair of young giant pandas will soon call Adelaide Zoo in South Australia home.The couple will be the first pandas to settle down in the southern hemisphere - the last time the endangered species were seen was nearly two decades ago during a visit to the Australasian region .President Hu Jintao and Australian Prime Minister John Howard signed an agreement yesterday formalizing the 10-year loan in Sydney.Hu said the move is a friendly gesture and the pandas will become a symbol of friendship.Australian Foreign Minister Alexander Downer said after the signing ceremony that he played a key role in working with the Chinese to borrow the pandas as part of a global survival program."I love animals and I think the giant panda is one of the truly great animals of the world," said Downer.A native of Adelaide, Downer was excited that China agreed to send the pandas to the zoo where his grandfather was once the chief.It is hoped that the two-year-old male "Wang Wang", or "Net" and one-year-old "Funi", or "Lucky Girl", will breed when they reach sexual maturity.The two pandas are from the Wolong Nature Reserve in Sichuan Province and they were named by the public earlier this year, said Zhang Guiquan, a director at the reserve.Chris West, CEO of the Royal Zoological Society of South Australia, said that the pair's presence in Australia will signify international collaboration to secure a future for wildlife."We will send our staff to Wolong to receive training," West said. "Our staff will also visit the giant panda facilities at San Diego Zoo, where they have successfully bred and managed giant pandas, and the climate is similar to that in South Australia."The giant panda is unique to China and often serves as an unofficial national mascot. The animals were sent abroad as a sign of warm diplomatic relations or to mark breakthroughs in ties.In a related development, two giant pandas "Bing Xing", 7, and "Hua Zui Ba", 4, are scheduled to leave China today for a 10-year sojourn in Spain.Giant pandas are among the world's most endangered species. State Forestry Administration figures show 1,590 pandas live in the wild, mostly in the mountains of Sichuan, and more than 200 live in captivity in the country.