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GENEVA -- China has reached understanding with the United States and Mexico on their alleged trade subsidy measures, sparing a WTO panel ruling on the case, the Chinese WTO mission said here on Thursday.Chinese Ambassador Sun Zhenyu signed respective memorandums of understanding with his US and Mexican counterparts "regarding certain measures granting refunds, reductions or exemptions from taxes or other payments" at the WTO headquarters on Thursday, the mission said in a statement.In the MOUs, China made it clear to the United States and Mexico that "the policy of exemption for certain foreign-invested enterprises from payments to the State for worker allowances is no longer operative."Besides, the policy of value-added tax (VAT) refund to enterprises for the purchase of domestically produced equipment does not constitute prohibited subsidies as provided by relevant provisions of WTO agreements."Other preferential policies on income tax pertinent to the disputes have been repealed or will be repealed along with the implementation of the new Enterprise Income Tax Law of China," the statement added.According to the Chinese mission, the MOUs will be notified to the WTO as mutually acceptable solutions to the above-mentioned dispute in accordance with the Dispute Settlement Understanding of the world trade body.The United States filed the case to the WTO in February and later was joined by Mexico. The two countries alleged that China was using tax breaks and other incentives to "subsidize" its exports, which might violate WTO regulations.A WTO panel was established in August to investigate the case, following failed consultations between the three sides.But the three sides finally reached understanding on the dispute through continued discussions.

BEIJING - China's food watchdog issued an emergency circular on Wednesday to ensure food safety in the face of severe winter weather that has blocked transport and endangered supplies in much of central, eastern and southern China.The State Food and Drug Administration (SFDA) ordered all the local food and drug bureaus to tighten inspections of food production and sale facilities so as to prevent inferior or fake food from entering the market.The snow, the heaviest in decades in many places, has been falling in China's east, central and southern regions since January 10, causing building collapses, power blackouts, highway closures and crop destruction.The SFDA ordered all local bureaus to maintain food market order and to prosecute law violations, noting supplies of some foods was already tight.The extreme weather in the past two weeks hit as Chinese travelers began one of the world's biggest annual mass migrations for the Chinese Lunar New Year, or the Spring Festival, the most important festival for Chinese family gatherings.The SFDA also ordered local bureaus to promptly report and tackle emergencies and prevent mass incidents of food poisoning.

SHENYANG, March 6 (Xinhua) -- A total of nine descendants of the Chinese painter Qi Baishi have made agreements with one of 19 publishers and received books worth 100,000 yuan (14,051 U.S. dollars) as compensation over copyright infringement, a local court said on Thursday.     The Chinese Drama Publishing House contacted Qi's descendants and decided to give them books worth 200,000 yuan with a 50 percent discount as compensation after the court handed down the petition paper on Feb. 26, according to Shenyang Municipal Intermediate People's Court on Thursday.     Qi's offspring will have 90 percent copyright of the pirated book "Wu Changshuo and Qi Baishi's Seal Cutting" during the next 49 years and the publishing house has the remaining ten percent, according to their agreement.     Qi's descendants sued 24 publishers for 10 million yuan (1.3 million U.S. dollars) in damages for copyright infringement in December 2007. The court accepted 19 of them.     The claims were made against publishers based in Shanghai, Chongqing and other places, according to documents from the court.     Qi Bingyi, the painter's grandson said all the art works of his grandfather should enjoy the protection of copyright for 50 years after his death in 1957, but the publishers printed, published and sold the copies of the works without permission and also failed to pay contribution fees.     The largest damages claim ranged from 100,000 yuan to more than three million yuan.     The evidence that the plaintiffs collected included more than 100 items, including books, gold coins, paintings and seals.     The court began hearing four of the suits on Feb. 25 and a decision is yet to be handed down.

The authorities are considering a central system to award individuals' achievements in various fields to regulate such honors now being given out by local governments and agencies, said officials."The country is forging ahead to study the setting up of a national system of honors and a government framework for awards," said Yin Weimin, minister of personnel.Research on two specific laws to administer awards and confer medals is already being carried out, Yin said in a conference over the weekend.The National People's Congress has discussed laws on systems to give out awards and medals as early as 1993, but no agreement has been reached because of the complexity of such systems, experts said."Effective government awarding methods are positive ways to motivate society to learn from the merits of individuals," said Wang Xiongjun, a researcher with Peking University."And the establishment of core honors in an award system, as national honors and medals for certain fields, will bring China in line with international standards," Wang said.Currently, China has various rules set up by government agencies to award individuals including civil servants and civilians who make contributions in certain fields, but almost all these lack detailed descriptions on awarding procedures and methods, said Wang.There have also been cases where officials were nominated for awards in controversial selection processes - sometimes involving large amount of prize money - that were said to lack transparency.For instance, judge Song Yushui from the Haidian District People' Court was up for an award worth a million yuan (5,600) in 2005 given by the Beijing municipal government for being one of the "outstanding individuals" of the year.But critics said Song should not receive such an award since her "achievements" were expected of her as a judge.To prevent such situations, there should be guidelines and principles set under an awards system, said Hua Xiaochen, an expert on public institutions with a research body under the Ministry of Personnel.The main role of an awards system is to provide examples of merit for the public to learn from and not to focus on large prizes, Hua told the Legal Daily.

The Chinese government expresses strong dissatisfaction about the U.S. decision to impose penalty tariffs against the imports of Chinese coated free sheet paper, Wang Xinpei, spokesman for China's Ministry of Commerce, said early Saturday. The Department of Commerce of the United States on Friday announced its preliminary decision to apply U.S. anti-subsidy law to the imports of coated free sheet paper from China. "This action of the U.S. side goes against the consensus reached by the leaders of both countries to resolve differences through dialogue," Wang said. "China strongly requires the U.S. side to reconsider the decision and make prompt changes," the spokesman said, adding China will closely watch the development of the issue and protect its own legitimate rights. In 1984 the United States set the policy of not applying anti-subsidy law to "non-market economies". Such a practice had been taken as a judicial precedent and had not been changed, Wang said. The preliminary decision of the U.S. Commerce Department made a bad instance and it obviously does not conform with the current judicial precedent of U.S. courts and the consistent practice of the U.S. Commerce Department, the spokesman said. While regarding China as a non-market economy, the U.S. ignored the strong protests from China and decided to apply its anti-subsidy law against China. "The decision brings great harm to the interests and feelings of Chinese business people and is not acceptable," Wang said.The U.S. Department of Commerce on Friday announced its preliminary decision to apply U.S. anti-subsidy law to imports from China. The decision alters a 23-year old bipartisan policy of not applying the countervailing duty (CVD) law to China, which the U.S. government regarded as a "non-market economy", said the Department of Commerce in a statement, adding the change reflects China's economic development. "China's economy has developed to the point that we can add another trade remedy tool, such as the countervailing duty law. The China of today is not the China of years ago," said Commerce Secretary Carlos M. Gutierrez. The U.S. government also claimed that Chinese producers and exporters of coated free sheet paper received countervailable subsidies ranging from 10.90 to 20.35 percent. From 2005 to 2006, imports of coated free sheet paper products from China increased approximately by 177 percent in volume, and were valued at an estimated at 224 million dollars in 2006.