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HAIKOU, April 5 (Xinhua) -- Traffic had been resumed on Sunday on the highway that had been flooded by collapse of a small reservoir on March 27, in south China's Hainan Province, local authorities said.     The Wanning section of the province's eastern expressway had been resumed in both directions at 8:00 p.m. after nine days of reconstruction work, said an official with the provincial Communication Department.     The Bofeng reservoir, with a designed water storage capacity of1.02 million cubic meters, collapsed at about 10 p.m. in Xinglong Town, Wanning City.     The ensuing floods washed out a slip road to the province's eastern expressway and swept away two cars, injuring three people in the vehicles.     The water also inundated 20 hectares of farmland and caused slight damage to three riverside houses.     The municipal water conservancy administration had claimed that only 100,000 cubic meters of water burst from the reservoir. However, Chen Xingzhang, secretary of the CPC municipal committee of Wanning, doubted its credibility.     Vehicles had to detour around the flooded road over the past days.     The reservoir was being reinforced at the time of the accident. An investigation showed that workers of a company in charge of the project exploded part of the cofferdam before the water dropped to the safety level, which led to the collapse. The scheme had no approval from authorities at the time.     The construction contractor, Hongda Water Conservancy Projects Co, Ltd., based in Henan Province, and the project supervising company, Hainan Institute of Water Conservancy and Power Construction Survey and Design, were banned from carrying out further business in the city.     Police have detained four project workers in connection with alleged safety violations that led to the collapse in the province, the local Communist Party of China (CPC) committee said Monday.     Chen Ruchuan, former head of the water conservancy administration of Wanning City, and two deputy heads, were also sacked from their posts Monday, according to the Wanning municipal committee of the CPC.     The local government has been working on a plan to compensate people affected in the accident.

BEIJING, Feb. 21 (Xinhua) -- All unemployed urban residents in China will have access to medical insurance this year as the country plans to expand the coverage of an insurance scheme to all cities and towns, according to a government official Saturday.     Li Zhong, vice director of Health Insurance Department under the Ministry of Human Resources and Social Security, said at a forum that the program, which has benefited residents in more than 300 cities as of 2008, is expected to be promoted to all cities and towns this year.     The program, introduced in 2007, aimed to bring urban children, students and jobless adults under the umbrella of medical insurance.     China established a medical insurance system for urban employees in 1998 and implemented a new cooperative medical care system for rural residents since 2003.     If the program is successfully implemented, it means all Chinese residents can have access to medical insurance.     Under the program, the premiums are paid by households, instead of individuals. The government gives each participant a subsidy of at least 40 yuan annually, and grants extra subsidies for low-income families and disabled ones.     Residents have to pay a share of premium in the program and their participation is based on their free will. Urban residents with only temporary jobs could also participate in the program.     Li said the program will gradually increase its reimbursement rate and include more common diseases for compensation. The program currently mainly covers expenses of residents for hospitalization and major illness.     There are more than 240 million unemployed urban residents in China. Among them, more than 100 million have joined the program so far.

BEIJING, March 26 (Xinhua) -- China's central bank governor has spoken highly of the government's rapid responses to the current global financial crisis, featuring decisively adopting a proactive fiscal policy and an adaptively easing monetary policy, and launching a bundle of timely, targeted and temporary policies and measures.     The prompt, decisive and effective policy measures adopted by the Chinese government demonstrates "its superior system advantage when it comes to making vital policy decisions," says Zhou Xiaochuan, president of the People's Bank of China (PBC), in an article entitled "Changing Pro-cyclicality for Financial and Economic Stability."     It is Zhou's third article published on the central bank's official website (WWW.PBC.GOV.CN) this week to discuss the issue of the current global financial crisis. His first and second articles, published on Monday and Tuesday, are entitled "Reform the International Monetary System" and "On Savings Ratio," respectively.     In the third article, the 61-year old central bank governor tries to find out the root causes for the current financial crisis, including but not limited to lessons on monetary policy, financial sector regulations, accounting rules.     The top Chinese banker says he wants to stimulate debate and discussions on some of the pro-cyclical features in the system, possible remedial measures, and how monetary and fiscal authorities can play their professional roles at times of severe market distress.     "Financial crises normally originate in the accumulation of bubbles and their subsequent bursts. Usually, economists pay a lot of attentions to pro-cyclicality on the macro level.     However, on the micro level, there are quite a number of notable pro-cyclical features embedded in the market structure today, which should be addressed as we deal with the current crisis and reform the financial system," he says.     Zhou suggests that in the current market structure, more counter-cyclical mechanisms or negative feedback loops on micro-level should be put in place to sustain a more stable financial system.     In the article, he notes that rating problems and herding phenomenon arise from outsourcing.     The global financial system relies heavily on the external credit ratings for investment decisions and risk management, giving rise to a prominent feature of pro-cyclicality, according to the central bank governor.     "Economic upswings produce euphoria and downturns generate pessimism," he says, "Many market players adopting ratings from the three agencies and using them as the yardstick for operations and internal performance assessments clearly result in a massive "herd behavior" at the institutional level."     Zhou points out that some market players seem to have forgotten that the ratings are no more than indicators of default probabilities based on past experiences but were never meant to be guarantees for the future, he says. "Once problems take place, as we have seen during the current crisis, fingers are pointed to the rating agencies," he says.     He suggests that financial institutions should try to rely more on internal rating in assessing risks.     He calls for giving full play to the professional role of authorities in maintaining overall financial stability and establishing a counter-cyclical mechanism for capital requirement     "To stabilize markets under severe stress, finance ministries and central banks need to act fast and apply extraordinary measures," he says, "Untimely or delayed response falls behind the curve and would make the outcome less than desired even if the response is correct and strong."     In modern Western societies, a prolonged political process for mandates to finance ministries or central banks often miss the best timing for action, Zhou says, adding, "We have observed such cases during the current crisis."     He suggests that governments and legislatures may consider giving pre-authorized mandates to ministries of finance and central banks to use extraordinary means to contain systemic risk under well-defined stress scenarios, in order to allow them to act boldly and expeditiously without having to go through a lengthy or even painful approval process.     "Such systematic pre-authorized mandates would put the specialized expertise of finance ministries and central banks to the best use when markets need it the most," he stresses.     The central bank governor attributes China's current success in easing the impacts of the crisis to the country's financial sector reform and ongoing macroeconomic stimulus measures     In 2003, fully aware of the systemic vulnerabilities of China's banking industry, the Chinese government made a courageous and strategic decision to restructure the four state-owned commercial banks, says Zhou, who took over as the PBC governor in late 2002.     In the article, Zhou gives a look back on the reforms of the country's major banks and security industry.     But he warns, "We should bear in mind that despite the notable achievements in banking reform, the major banks have not gone through a full business cycle and still have much to improve. An economic slowdown will be the ultimate stress test for the robustness of the banks' strengths."     According to the bank governor, irrespective of China's sound financial sector, the Chinese economy, especially the export sector, has felt the impact brought by the slowdown of the global economy.     He praises the Chinese government for its plans to stimulate domestic demand and promote stable and relatively rapid economic growth, including the extra investment of 4 trillion yuan (685 billion U.S. dollars) in over two years, the ten measures to revitalize the industrial sectors, and other bolster measures to increase money supply, promote employment, reform taxes and medical and healthcare system.     "Having taken the above-mentioned measures, China expect to maintain stable economic growth by boosting domestic demand and reducing dependence on external demand, thus serving as a stabilizing force in global economy," Zhou says.     In overall, the macroeconomic measures have produced preliminary result and some leading indicators are pointing to recovery of economic growth, indicating that rapid decline in growth has been curbed, he concludes.

BEIJING, March 24 (Xinhua) -- China said it would raise benchmark retail prices of gasoline and diesel by 290 yuan (42.46 U.S. dollars) per tonne and 180 yuan per tonne, respectively, as of midnight Tuesday.     It is the second oil price adjustment this year. The National Development and Reform Commission (NDRC), China's top economic planner, cut benchmark pump prices of gasoline and diesel by 140 yuan and 160 yuan per tonne, or 2 percent and 3.2 percent, respectively, on Jan. 14.     Experts said more frequent price adjustments show China can respond more quickly to international oil price changes after a new pricing mechanism took effect Jan. 1, 2009. The combined photo taken on Mar. 24, 2009 shows the price boards before (top) and after (bottom) the adjustment, in Beijing, China. China said it would raise benchmark retail prices of gasoline and diesel by 290 yuan (42.46 U.S. dollars) per tonne and 180 yuan per tonne, respectively, as of midnight Tuesday.    Oil price fell to 53.10 U.S. dollars a barrel in electronic trading on the New York Mercantile Exchange on Tuesday. On the previous trading day, it settled at 53.80 U.S. dollars a barrel, the highest price since Dec. 1.     Under the new mechanism, China's domestic prices are to be "indirectly linked" to global crude prices "in a controlled manner."     "The 'indirect link' would be based upon average global crude prices, while taking into account domestic production costs, taxation, and 'appropriate profits' of oil producers," deputy director of the pricing department of the NDRC, Xu Kuning, said.     Government-set fuel prices were previously changed infrequently.     As a result, either Chinese drivers ended up paying more than those in other countries when crude prices dropped, or domestic refineries suffered huge losses when crude prices surged.     Last Dec. 18, when the international crude price dropped from a record 147 U.S. dollars a barrel to less than 40 U.S. dollars, the NDRC announced a move to cut pump prices by 900 yuan and 1,100 yuan per tonne for gasoline and diesel, respectively.     The new pricing mechanism was announced the following day and took effect at the beginning of this year.     In Tuesday's notice to raise pump prices, the NDRC urged the two state-owned oil producers, PetroChina and Sinopec, to increase oil production to meet demands.     It also urged local pricing regulators to strengthen supervision over oil prices and crack down on any price violations.     China's crude oil output reached 190 million tonnes in 2008, up2.3 percent year-on-year, the highest growth in three years, according to the China Petroleum and Chemical Association.     Imports of crude oil rose 9.6 percent year-on-year to 179 million tonnes last year, which accounted for 48 percent of total crude oil demand.

BEIJING, March 18 (Xinhua) -- With folk dances and songs, China and the Democratic People's Republic of Korea (DPRK) Wednesday unveiled their year-long exchange program, "China-DPRK Friendship Year."     Chinese Premier Wen Jiabao and his DPRK counterpart, Kim Yong Il, attended the premiere of friendship year, together with ministers of foreign affairs, trade and culture of both countries. Chinese Premier Wen Jiabao (R) and his counterpart of the Democratic People's Republic of Korea (DPRK) Kim Yong Il wave during a ceremony marking the 60th anniversary of the establishment of the China-DPRK diplomatic relations and the launch of the China-DPRK Friendship Year in Beijing, capital of China, March 18, 2009."It is of great significance for China and the DPRK to stage the Friendship Year, which coincides with the 60th anniversary of bilateral diplomatic relations," Wen said in a speech at the start of the gala.     Wen said the DPRK was among the first countries to establish diplomatic relations with China. The two countries forged diplomatic relations on Oct. 6, 1949, days after the People's Republic of China was founded. Chinese Premier Wen Jiabao (L) delivers a speech as his counterpart of the Democratic People's Republic of Korea (DPRK) Kim Yong Il listens during a ceremony marking the 60th anniversary of the establishment of the China-DPRK diplomatic relations and the launch of the China-DPRK Friendship Year in Beijing, capital of China, March 18, 2009. "The exchange program spells out the shared aspiration of both countries to cherish their traditional friendship and commit to good-neighbor cooperation," Wen said.     "With joint efforts, I am convinced that the China-DPRK Friendship Year will reach its expected goals and yield fruitful results," Wen said.     The year-long exchange program will cover a series of cultural events like art performances, photo exhibitions and art shows. Premier of the Democratic People's Republic of Korea (DPRK) Kim Yong Il (L) delivers a speech as Chinese Premier Wen Jiabao listens during a ceremony marking the 60th anniversary of the establishment of the China-DPRK diplomatic relations and the launch of the China-DPRK Friendship Year in Beijing, capital of China, March 18, 2009.Kim, who was on his first visit to China since taking office in April 2007, said DPRK-China friendship was the common treasure of both nations.     "Our party and government have paid much attention to the bilateral friendship and committed themselves to promoting the development of our traditional friendship," Kim said.     Kim said the DPRK would work with China to make the Friendship Year a success. Chinese Premier Wen Jiabao (2nd R, 2nd Line) and his counterpart of the Democratic People's Republic of Korea (DPRK) Kim Yong Il (3rd L, 2nd Line) wave as they pose for a group photo with performers after the performance for the launch of the China-DPRK Friendship Year in Beijing, capital of China, March 18, 2009.Following the leaders' speeches, more than 2,000 people from both countries watched an hour-long gala featuring folk songs and dances from both countries.     During his five-day visit to China, Kim will also meet with other Chinese state leaders. Chinese Premier Wen Jiabao (6th R, 2nd Line) and his counterpart of the Democratic People's Republic of Korea (DPRK) Kim Yong Il (4th L, 2nd Line) wave as they pose for a group photo with performers after the performance for the launch of the China-DPRK Friendship Year in Beijing, capital of China, March 18, 2009.