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BEIJING, May 3 (Xinhua) -- Decoupling from the world, and the economic downturn much of it is experiencing, has proven impossible for China. But its resilience is receiving more recognition, with many leading financial institutions upgrading their 2009 growth forecasts since mid-April.     The adjustments for gross domestic product (GDP) growth, ranging from 0.5 to 2.3 percentage points, were based on signs of a turnaround in the first quarter. These indicators included stronger-than-expected real GDP growth, recovering property investment, a pick-up in power consumption and a surge in bank lending.     Merrill Lynch & Co. said it expected China's GDP to grow 7.2 percent in the second quarter and 8 percent this year, while Goldman Sachs raised its projection from 6 percent to 8.3 percent, the most optimistic forecast so far. Other forecasts include UBS, which raised its estimate by 0.5 point to 7 percent and CLSA Asia-Pacific, which lifted its outlook by 1.5 point to 7 percent.     China's policymakers can take heart from these forecasts. Every upward revision, big or small, given the global economic slowdown, might point to a better chance for the nation to achieve its 8-percent growth target. That level of growth is considered necessary to raise living standards while maintaining social stability.     But there's still the question of whether rapid growth is sustainable. Some analysts believe it isn't unless China can rebalance its economy and achieve higher efficiency, lower environmental costs and a more reasonable balance among investment, trade and consumption.     QUANTITY OR QUALITY?     In an interview with Xinhua, Stephen Roach, chairman of Morgan Stanley Asia, urged Chinese authorities to get more serious about stimulating private consumption because the global economy remains "pretty weak" and might only achieve a weak recovery.     "China has responded to the crisis the way it has always responded to global problems. That is, using proactive fiscal stimulus mainly in the infrastructure area to provide temporary support in the downturn until the global economy comes back. It worked in the 1997 Asian financial crisis and the 2000-2001 mild recession. But this is a different sort of problem," said Roach.     "Once the stimulus wears off and if there is no follow-through, the Chinese economy will weaken again. I don't think exports will recover in the weak global economy."     Domestic economists voice similar worries, saying that the speed of growth doesn't matter as much as the quality. Liu Shangxi, deputy dean of the Research Institute for Fiscal Science at the Ministry of Finance, said that the 6.1-percent year-on-year growth in the first quarter had been "fairly good" for China. But, he said, "sometimes, it's worth slowing down a bit to have the economy move more stably."     Wang Xiaoguang, an economist with the National Development and Reform Commission (NDRC), the chief planning agency. said that the government's annual growth target had become mostly symbolic.     For five years in a row, the target was 8 percent, and for five years in a row, the growth rate overshot the target. Wang said the government had faced a dilemma: a cut in the target might undermine public confidence while a rise might tempt local governments to over-invest to meet a high growth target.     The turnaround signs mostly reflected the impact of the 4-trillion-yuan (586 billion U.S. dollars) stimulus package. Meanwhile, retail sales still trailed investment in contributing to growth. Local economists warned that the economy remained unbalanced and vulnerable.     "Historical records show that adjustments in the Chinese economy would take two to three years, on average. Seven months have passed since the impact of the global financial crisis began to tell on the local economy.     "With a turnaround in sight, recovery might come earlier than expected but there are still risks of a further slowdown," Chen Dongqi, deputy chief of the Macro-Economic Research Institute under the NDRC, told a business development forum in Guangdong in late April.     BUYING CURE     It's widely accepted among economists that China should boost domestic private consumption by leading individuals to buy more and save less. The key question is: how?     "Two big programs" Roach advocates call for doubling the investment in social security immediately to 150 billion U.S. dollars and establishing a goal of raising consumption as a share of the economy from 36 percent to 50 percent within five years.     "What I think is missing here is the social safety net, social security pension and unemployment insurance. Because of the absence of the safety net, China has seen a high level of precautionary saving," he said.     Roach suggested that China develop a private pension system in particular so total employee compensation could rise in tandem with productivity. "Chinese companies need to partner with their workers and provide medical care [and] retirement investing for their workforce. Chinese workers' total pay package should have both wages and benefits," he said.     Liu agreed that the primary task in expanding consumption was to raise incomes. "Securing the legitimate interests of workers is particularly significant when the economy slumps. It would be like drinking poison to quench one's thirst if businesses sought to expand corporate earnings at the cost of workers' pay and benefits," he said.     Low labor costs and massive capacity have propped up China's prosperity over the past decades. But the proportion of wages to national income has been on a long decline since the 1990s.     Between 2002 and 2006 alone, economists estimate the figure dropped from 62.1 percent to 57.1 percent. Meanwhile, the contribution of consumption to GDP growth fell from 43.6 percent to 38.9 percent.     "A more meaningful index to judge the sustainability of China's economic growth would be the proportion of wages to national income," Liu said. "If this ratio did not rise, people would remain poor, and thus expanding consumption would be empty talk."     Chinese are far from wealthy. Only 4 percent of the workforce, and just 10 percent of the urban workforce, earn more than 2,000 yuan a month, the threshold for individual income tax.     As Chinese residents hold 2.43 trillion yuan in aggregate deposits, economists say one immediate way to boost consumption would be to stabilize spending on staple property -- including housing and automobiles -- and support tourism and cultural activities.     "People spend much of their money on housing and food. The government should encourage people to entertain themselves more," Wang said.     CHINA 'NO LOCOMOTIVE'     Although China might be the first major economy to recover from the downturn, economists disagree on when China will return to sustained high growth.     Morgan Stanley, for example, has forecast a firm recovery by mid-year, but said sustainable growth through 2010 would still hinge on what happens in other countries.     "China will be stronger. But will that strength be enough to allow others to follow in its footsteps? I don't think so," said Roach.     "Most of China's resilience comes from infrastructure building, roads, property consumption ... [this] won't have an impact on the United States and Europe. This resilience is only temporary while its stimulus is local rather than global."     Central bank governor Zhou Xiaochuan also warned in late April during World Bank-IMF meetings in Washington that the rebound in China's economy had to be consolidated. He said conditions in China would permit rapid economic development again, once macroeconomic policies such as the stimulus plan took effect.     Challenging internal and external conditions, he said, included continuously shrinking external demand, a relatively large decline in exports, overcapacity in some industries, falling government revenue and lingering employment pressure.     As China emerges from the shadow of the downturn, together with many of its Western partners, the world is closely watching the socialist market economy that it is still trying to develop.     It was interesting to see that there was much "the ideologically-constrained West" could learn from China, just as there was much China could learn from the West, said Roach.     "China has gone slow in many areas, especially in the opening up of its financial market. But China made the right choice," he said.     "Focusing on stability is a huge plus for China. But the nation must be vigilant in its financial policies, especially monetary and regulatory policies, and not allow asset bubbles and financial innovations it doesn't understand," said Roach.

BEIJING, July 17 (Xinhua) -- Chinese Premier Wen Jiabao attended Friday the cremation ceremony of renowned philosopher, religion scholar and historian Ren Jiyu, who died on July 11 at the age of 93.     Ren was born in 1916 in Pingyuan County in east China's Shandong province. He joined the Communist Party of China (CPC) in1956.     "Ren conducted research and education in the fields of Chinese philosophy and religion for a long time. He has made significant contributions to the country's cultural industry by compiling historical materials," said a statement issued by the Publicity Department of the CPC Central Committee. Li Changchun (R), a member of the Standing Committee of the Political Bureau of the Central Committee of the Communist Party of China, shakes hands with a relative of renowned Chinese scholar Ren Jiyu during Ren's funeral in the Babaoshan Revolutionary Cemetery in Beijing, capital of China, July 17, 2009. Ren, outstanding philosopher, religion scholar, historian and honorary director of the National Library of China, died on July 11 at the age of 93.The cremation ceremony was held Friday morning at the hall of the Beijing Babaoshan Cemetery. Li Changchun, a member of the Standing Committee of the CPC Central Committee Political Bureau, also attended the ceremony.     Chinese President Hu Jintao, along with former President Jiang Zemin, Wu Bangguo, Wen Jiabao, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang, He Guoqiang and Zhou Yongkang offered their condolences to Ren's family after Ren's death.

VENICE, May 25 (Xinhua) -- China's top lawmaker Wu Bangguo left here for home on Sunday afternoon after concluding his three-nation Europe tour, which helped push his country's relations and cooperation with Europe.     Wu is the first chairman of the Standing Committee of the National People's Congress (NPC), top legislature of China, who has paid an official goodwill visit to Austria in 15 years and to Italy in 12 years. The Europe tour also took Wu to Russia. During the 11-day trip, Wu met with the heads of state and governments of the three European nations and held talks with their parliament leaders. Wu Bangguo (L front), chairman of the Standing Committee of the National People's Congress (NPC) of China, is greeted upon his arrival in Moscow, capital of Russia, May 13, 2009.     ENHANCING PARLIAMENTARY EXCHANGES     Wu's visit greatly advanced friendly exchanges and cooperation between China's legislature NPC and the parliaments of the three nations.     During the visit to Russia, Wu and Chairman of the Russian State Duma Boris Gryzlov jointly attended the third session of the cooperation committee between the NPC and the lower chamber of Russian parliament, or the State Duma. Wu Bangguo, chairman of the Standing Committee of China's National People's Congress (NPC), and Russia's State Duma Chairman Boris Gryzlov attend the third meeting of the cooperation committee between NPC and the Russian State Duma in Moscow, Russia, May 14, 2009.Wu said in a meeting with Gryzlov that development of the mechanism of regular exchanges between the parliaments of China and Russia has proved the unique advantage of inter-parliamentary exchanges. He said such exchanges has not only helped enhance friendship and deepen political trust between the two peoples, but also added new vigor to bilateral links by advancing trade and economic cooperation.     "Today's situation of vigorous growth in China-Russia relations should be contributed to tireless pursuit of good neighborly friendship by the two peoples and the joint effort of their parliaments," Wu said.     During the visit to Italy, Wu and Italian Senate President Renato Schifani signed here an agreement on establishing a regular exchange mechanism between the NPC and the Italian Senate. The agreement is the first of its kind ever reached between the parliaments of the two countries. Wu Bangguo (L, front), chairman of the Standing Committee of the National People's Congress of China, shakes hands with Renato Schifani (R, front), the Senate speaker of Italy, after signing an agreement on bilateral exchange mechanism, in Rome, capital of Italy, May 20, 2009In a speech to international media after signing the agreement, Wu said the agreement will help establish a mechanism of regular exchanges between the parliaments of the two countries and add new vigor to the all-round strategic partnership between China and Italy. He noted that the two parliaments have carried out good cooperation, which consists an important part of bilateral relations.     Schifani told reporters that he is glad to sign the strategic agreement between the two parliaments. He said Italy and China enjoy a sound relationship.     During the visit to Austria, Wu met with Barbara Prammer, president of the Austrian National Council, and Harald Reisenberger, president of the Federal Council of Austria. Wu Bangguo (L front), chairman of the Standing Committee of the National People's Congress, China's top legislature, meets with Austrian National Council President Barbara Prammer (R front) in Vienna, capital of Austria, May 15, 2009Wu said during the meetings that parliamentary exchanges consist an important part of China-Austria relations. He said the close links between NPC and Austrian parliament has become a strong driving force for friendly relations between the countries. He hopes that the two sides should carry on this tradition of sound cooperation by pushing forward communications between political parties, local governments and peoples of the two countries. The two sides should promote practical cooperation in all fields so as to add new impetus to bilateral relations.     Wu welcomes more and more Austrian parliamentarians, especially young parliamentarians to visit China.     Reisenberger said parliament members from all parts of Austria wish to strengthen cooperation with the NPC in a bid to enhance people-to-people friendship, promote local communications and expand trade and economic cooperation.     ADVANCING BILATERAL LINKS     Wu's visit helped advanced relations between China and the three European nations.     During the visit to Russia, Wu met with Russian President Dmitri Medvedev. Wu said the strategic partnership of cooperation between China and Russia is currently showing a momentum all-round and rapid growth, as high-level contact remains frequent. Russian President Dmitry Medvedev (R) shakes hands with Wu Bangguo, chairman of the Standing Committee of the National People's Congress (NPC) of China, in Moscow, capital of Russia, May 13, 2009Wu said the high level of China-Russia partnership is fully reflected in such areas as frequent contact between top leaders of the two countries, the staging of "Russian Language Year" in China, the signing of an oil cooperation agreement between the two governments and the exchanges between the NPC and Russian parliament.     Medvedev said Wu's visit to Russia reflects the momentum of fast growth in bilateral links. Under the current environment of international financial crisis, coordination between the parliament of the two countries will be conducive to advancing bilateral cooperation.     In Austria, Wu met with Austrian President Heinz Fischer and Vice Chancellor and Federal Minister of Finance Josef Proll. Wu Bangguo (L), chairman of the Standing Committee of the National People's Congress, China's top legislature, meets with Austrian President Heinz Fischer in Vienna on May 15, 2009. Wu Bangguo arrived in Vienna on May 15 for a four-day official goodwill visit to Austria. During the meetings, Wu emphasized that China places great importance on developing relations with Austria. He said China is ready to expand friendly contact between the governments, parliaments and political parties of the two countries on a basis of mutual respect, equality and mutual benefits.     Wu said the two countries should enhance mutual understanding and trust so as to deepen cooperation in various fields and carry out closer coordination and communication on international affairs.     Fischer appreciates the responsible stance and measure that China has taken in addressing international financial crisis. He said the financial crisis has caused great impact on every country in the world and required joint effort of all countries in addressing it.     On his tour to Italy, Wu met with Italian President Giorgio Napolitano and Premier Silvio Berlusconi. Wu Bangguo (L), chairman of the Standing Committee of the National People's Congress of China, talks with Italian President Giorgio Napolitano in Rome, May 21, 2009. During the meetings, Wu said the economy of China and Italy are highly complementary to each other. He said the two sides enjoy a sound foundation of cooperation and great potential of expanding trade.     Wu put forward three suggestions on expanding trade and economic cooperation between the two countries. Firstly, he said the two countries should strengthen cooperation between small- and medium-sized companies as a way to expand trade and mutual investment. He said the governments of the two countries should give a full play to their joint committees in a bid to support and facilitate cooperation between the companies. Wu Bangguo (L), chairman of the Standing Committee of the National People's Congress of China, shakes hands with Italian Premier Silvio Berlusconi in Rome, May 20, 2009.Secondly, Wu said the two countries should explore new areas of cooperation. Noting that China is working on economic restructuring and upgrading industries, Wu said the two sides share broad prospect in the development and utilization of new energy.     Thirdly, Wu said the two sides should cooperate closely on staging the World Expo. Shanghai and Milan will respectively host the World Expo in 2010 and 2015. Wu expressed the belief that cooperation on this issue will become a new bright spot of China-Italy cooperation.     PUSHING FORWARD PRACTICAL COOPERATION     Wu's visit also helped strengthen practical cooperation in all fields between China and the three nations.     During his visit to Italy, Wu met with Chinese entrepreneurs doing business in Europe. Wu said overseas Chinese companies should explore new ways to help China restructure its economy and upgrade its industries.     Wu, as China's top legislator, made the remarks as he met here with Chinese entrepreneurs who invest and do business in Italy and Europe.     Wu encourages the Chinese companies to expand their overseas market and explore new areas and channels of cooperation in other countries so as to make new contributions to China's cooperation with Italy and Europe.     Against the background of international financial crisis, Chinese companies should enhance research and development capabilities and establish overseas marketing network through cooperation with foreign companies, Wu said.     He hopes that Chinese companies should seized the opportunity of reshuffle of global industry to upgrade management and technology. He said Chinese companies should attach importance to fostering management talents with international experience.     During the visit, Wu demonstrated great interest in upgrading high-tech cooperation between China and the European countries. He visited Vienna High-tech Zone on Saturday, inspecting an energy saving office building and a wind tunnel, which is believed to be the world's largest for testing locomotives and automobiles. The wind tunnel has undertaken tests and data gathering for locomotives used in city subway system in Shanghai.     Wu also visited in Rome a research and development center under the Italian National Agency for New Technology, Energy and the Environment (ENEA) He inspected the high-temperature sole heat system for generating electricity at the R&D center.     Wu said it is a global trend in the energy sector to develop new energy and renewable energy in a broad prospect of growth. He said the Chinese government places great importance on and actively promotes development and application of all kinds of renewable energy, including solar energy. He expressed the wish that research institutes and companies of the two countries should increase cooperation and investment in this respect so as to jointly exploit the renewable energy market.     During the visit, both Wu and leaders of the three nations agreed that under the circumstances of international financial crisis, strengthening practical cooperation will not only help the countries to overcome current difficulties, but also help promote the recovery of world economy. 

BEIJING, July 1 (Xinhua) -- Chinese Vice President Xi Jinping on Wednesday urged Party members to better facilitate their daily work by applying their knowledge and enhanced research ability obtained at a top Party school.     Xi, also president of the Party School of the Communist Party of China(CPC) Central Committee, made the remarks Wednesday in a meeting with representatives of officials who are in the school for advanced studies and training. Wednesday marks the CPC's 88th birthday. Chinese Vice President Xi Jinping (R), member of the Standing Committee of the Communist Party of China (CPC) Central Committee Political Bureau, member of the Secretariat of the CPC Central Committee and also president of the Party School of CPC Central Committee, shakes hands with representatives of the Party school students in Beijing, China, on July 1, 2009. Xi held a meeting with representatives of officials who are in the Party school for advanced studies and training here on Wednesday.    He called for Party schools to embrace strictness in school administration and management so as to guarantee quality teaching.     Students of the Party school were mostly leaders and shouldered great responsibilities, he said, urging them to gain more knowledge, enhance their ability and cultivate their working style through the training and study at the school.

ZAGREB, June 19 (Xinhua) -- Chinese President Hu Jintao arrived in the Croatian capital of Zagreb Friday for a state visit to strengthen the comprehensive cooperative partnership between the two nations.     This is the first visit to Croatia by a Chinese head of state since the two countries established diplomatic ties 17 years ago.     In Zagreb, President Hu is expected to meet Croatian leaders to discuss how to enhance bilateral cooperation and exchange views on major regional and global issues of common concern.     The two countries are expected to sign a host of cooperation deals involving various sectors during the visit.     "I believe that President Hu's visit to Croatia will have great impact on consolidating traditional friendship between China and Croatia and deepening all-round and mutually beneficial cooperation between the two countries," said Chinese Vice Foreign Minister Li Hui last week. Chinese President Hu Jintao (2nd R, front) is welcomed upon his arrival while Croatian President Stjepan Mesic (1st R, front) looks on at Zagreb, capital of Croatia, June 19, 2009. Hu arrived in Zagreb Friday for a state visit to strengthen the comprehensive cooperative partnership between the two nationsThe China-Croatia ties have developed steadily since the two countries established diplomatic relations 17 year ago. Their bilateral relations have entered a new era since the two countries forged a comprehensive cooperative partnership in 2005.     In recent years, China and Croatia have had more high-level exchanges, strengthened their political mutual trust, expanded their fruitful cooperation to all fields, and maintained close cooperation and mutual support on issues concerning each other's basic interests.     Croatia is the last leg of President Hu's three-nation tour, which has already taken him to Russia and Slovakia.     Hu had earlier attended a summit of the Shanghai Cooperation Organization and a summit of BRIC countries (Brazil, Russia, India and China) in Yekaterinburg, Russia.  

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