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BEIJING -- China will gradually scrap restrictions on the destination, stock ownership and business scope of foreign investment in the service sector, a senior economic planner said in Beijing on Saturday.Zhang Mao, vice minister of the National Development and Reform Commission (NDRC), said the country would stick to its opening-up policy and promote a "quantity-to-quality transformation in attracting foreign investment".He added existing restrictions on foreign investment in key industries concerning China's national security and its citizens livelihood remained unchanged."The point (of the transformation) is to absorb advanced technologies and management skills from foreign countries," he said. "Foreign investment companies are expected play a positive role in this regard."Speaking at a multinational CEO roundtable on Saturday, he said foreign investment would be encouraged to enter high-tech, equipment and new material manufacturing and logistics businesses. He added the central and western hinterlands were open for foreign investment with more incentives.But Zhang stressed that foreign investors were restricted from setting up businesses for export only in China and banned from creating polluting projects and those that rely on consuming too much energy and resources.Chinese authorities would also help to create a sound investment environment by simplifying examination and approval procedures and steadily accelerating the free exchange of the country's currency under the capital account.The government would establish a cross-department supervision mechanism over foreign mergers and acquisitions in effort to safeguard national economic security, he said.Assistant Minister of Commerce Chong Quan said multinationals were encouraged to strengthen cooperation with their Chinese partners in promoting regional development, technological innovation, outsourcing services, product safety and exercising corporate social responsibility.Chong said his ministry had named 10 cities where "conditions are mature", the "base cities" of outsourcing services. They are Beijing, Dalian, Xi'an, Shenzhen, Chengdu, Wuhan, Nanjing, Shanghai, Tianjin and Jinan.By 2010, China's export volume of outsourcing services was expected to double that in 2005, he added. New foreign investment guideOn November 7, China released a new guide of industries open to foreign investment and foreign companies. It also listed those that were banned or restricted from entering the Chinese market.Foreign investors are invited to join efforts to promote the recycling economy, clean production, renewable energy utilization and ecological environment protection but prohibited from exploiting "important and non-renewable" mineral resources.The new guide replaced the 2004 version and takes effect on December 1.Since 1997, China has revised the industry guide for foreign investors on three occasions in hope of channeling foreign investment to serve the needs of industrial restructuring.The current policies to attract foreign investment were made 28 years ago when China was desperate for investment and foreign currency.However, the country has been the largest recipient of foreign investment among all developing nations for 15 consecutive years. A 2004 report to the UN Conference on Trade and Development noted the country attracted a per capita foreign investment of , much lower than the 4 per person that was invested in developed countries and below the world average of 7.Product safetyIn his speech at the roundtable, the assistant minister stressed that China has taken a highly responsible attitude towards product safety, urging multinationals to join the nation's efforts to guarantee product safety."Made in China" is a fruit of international endeavor because more than 50 percent of China's exports come from the processing trade sector, said Chong, "the exported products were manufactured in line with foreign standards and foreign customers' requirements," he said.Meanwhile, products made by foreign invested companies in China comprised a majority of the nation's exports, accounting for 58 percent of the total export volume, said Chong."China should not be the only one to blame for defective products," said the assistant minister, "product safety is a serious matter for the world as a whole and multinationals bear key responsibilities in coping with the challenge,"He said multinationals should keep a close watch on design, inspection and sales of their products and make sure their raw materials are up to safety standards.In the wake of headline food scandals, China's cabinet approved in principle a draft law on food safety to address the "weak points" in food production, processing, delivery, storage and sales at the end of October.The draft law proposed a food safety risk supervision and evaluation mechanism to provide a "key basis" for constituting food safety standards and food born disease control measures. The mechanism demanded a "unified, timely, objective and accurate" disclosure of emergency information.
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.

Policemen guard the sea wall at the Yuhuankanmen Port in Yuhuan, east China's Zhejiang Province, August 18, 2007.The Southeast China provinces are girding for the imminent Typhoon Sepat with cancellation of flights, evacuations of ships, boats and more than half a million people.[Xinhua] FUZHOU -- Typhoon Sepat packing winds of 119 km per hour landed in east China's Fujian Province at 2:00 am Sunday, said the Fujian provincial meteorological station. Before the landfall in Chongwu town, Hui'an county of Fujian, Sepat landed in Hualien, the central-eastern part of Taiwan around 5:40 am Saturday, with sustained winds of 180 kilometers per hour.Power cut for thousands of households and downpours were reported in many parts of the island.Sepat also brought downpours to Hui'an with 50-80 mm of precipitation in hours, according to the local meteorological station.Some buildings in Hui'an were damaged, roofs lifted while billboards and trees were toppled down, an official with the Hui'an office of flood control.The official said the typhoon was expected to cause more damages in the county.It rained heavily in the Fujian cities of Ningde, Fuzhou, Zhangzhou and Quanzhou early Sunday morning, according to the Fujian provincial meteorological station.Sepat was moving northwest and was expected to arrive in Jiangxi Province on Sunday afternoon, said an expert with the Fujian meteorological station.More than 900,000 people in the southern Guangdong Province and the eastern provinces of Fujian and Zhejiang have been relocated to safety before the arrival of Sepat.A car wades ahead in the flood water as typhoon Sepat lands with heavy winds and downpours in Cangnan county of the coastal city of Wenzhou, east China's Zhejiang Province on August 18, 2007. [Xinhua] The provincial meteorological station has issued the highest-level warnings for Sepat.More than 540,000 people in Fujian have been relocated to safe places by 7:00 pm Saturday, according to government officials.All entries of expressways in Fuzhou, capital of Fujian, were closed, while 109 domestic and international flights at the Fuzhou airport were cancelled on Saturday. Xiamen and Jinjiang cities also cancelled outbound flights.The Ministry of Civil Affairs have sent 3,000 tents to evacuated people in Fujian.Downpours have been forecast to hit the coastal areas of Fujian and neighboring Zhejiang Province starting from Saturday night.Passenger liners shuttling from Fujian to Taiwan have been suspended since Friday afternoon and it is undecided when services will resume.In Zhejiang Province, nearly 300,000 people had been evacuated to safety and 27,704 vessels back to harbor by 6:00 pm Saturday.Rain with precipitations of up to 87 millimeters hit Wenzhou, Pingyang, Taishun between Friday afternoon and Saturday.Three large reservoirs in Wenzhou discharged 17.5 million cubic meters of water in advance to leave room for more rainwater.In Guangdong, around 70,000 fishing farm workers on the sea, fishermen and residents in low-lying areas have been evacuated to safe areas.
China will gradually sell its planned 1.55 trillion yuan (3.6 billion) in special domestic bonds to finance its overseas investment agency, a senior central bank official was quoted on Monday as saying. The country's stock market has been hit by the bond issue plan, approved by China's parliament on Friday, as investors feared such a move would suck funds from the market. "The plan will be carried out gradually according to its monetary policy," Yi Gang, assistant governor of the People's Bank of China, told the Shanghai Securities News. Yi reiterated the Finance Ministry's view that the bond issue would have only a neutral impact on the domestic economy, the newspaper said. The Finance Ministry indicated on its Web site on Friday that it would issue the bonds directly to the central bank in exchange for part of the .2 trillion in foreign currency reserves under the central bank's control. No specific timetable was given for the sale of the bonds, but the increase in this year's debt ceiling suggests they will all be issued this year.
BEIJING, March 27 (Xinhua) -- China's economy would moderate but remain robust in 2008 with a growth rate of 10.7 percent, providing a cushion against the expected international downturn, according to a forecast issued by the United Nations commission here on Thursday. "Investment continues to be the main driver of growth, remaining resilient despite government cooling measures and with support from low real interest rates," said a report released by the UN Economic and Social Commission for Asia and the Pacific (UNESCAP). "A slowdown in exports and the country's efforts to cool the economy are the main reasons for the moderation," it said. Other factors expected to underpin China's growth include domestic demand, increasing spending power of rural consumers and rising consumption through higher government spending on social welfare. Official statistics show China's gross domestic product growth accelerated to 11.4 percent in 2007, the fastest for 13 years. The report said the U.S. sub-prime mortgage crisis is not expected to have a strong impact on growth in China. "In a worst case scenario where the U.S. economy goes into recession, the impact on China will not be as great as on other Asia-Pacific countries. Due to its blistering pace, China's growth will remain resilient, but will slow," said Shuvojit Banerjee, a senior expert with the UNESCAP. According to the report, China's increasing exports to the European Union are expected to compensate for a steady fall in exports to the United States, China's second largest export market. China has also witnessed a boom in trade with Africa. It said Chinese and other Asia-Pacific investors are playing a key role in supporting developed countries through the turmoil. Sovereign wealth funds and state investment institutions from the region have bolstered weakened banking sectors in the United States and the Europe. The report said China is facing an increasing challenge from inflation. The chief inflationary concerns lie in higher international oil and food prices. "Rising food prices are a bigger inflationary concern than oil prices because food accounts for a far higher proportion of consumer spending. Food price inflation particularly hits low income households." The report also warned that the fast growth is coming at an increasing cost to the environment. It said the destabilizing effect of growth on the environment is becoming more apparent. Air pollution, especially in large cities, is increasing the incidence of lung disease.
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