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China is tightening its grip once more on foreign investors in Chinese real estate, banning them from borrowing offshore in the latest effort to tame property prices and cool the economy. The new rule, set out in a circular from the State Administration of Foreign Exchange , could squeeze foreign investors who take advantage of lower interest rates outside China. Some may find it especially difficult to fund projects as Beijing has told its banks to cut back on loans for the construction industry. The central bank ordered Chinese banks to stop lending for land purchases as far back as 2003. "The only alternative is to fund the entire equity," said Andrew McGinty, a partner at the law firm Lovells in Shanghai. "But that's not a very favoured method, because your internal return on investment goes down dramatically." Property funds operating in China tend to borrow to fund at least 50 percent of a project's value. The circular, which the currency regulator sent to its local branches in early July but has not yet published on its Web site, also increases red-tape for foreign property investors. Investors seeking to bring capital into China to set up a real estate company must now lodge documents with the Ministry of Commerce in Beijing -- not just with local branches of the ministry, according to the new circular with de facto effect from June 1. That process could take a month or more, said an official at the Ministry of Commerce, declining to be identified. "What we mean is very clear: First we are targeting foreign real estate firms that are illegally approved by local governments," a SAFE official said. McGinty said the new rule would reduce foreign investment in the real estate sector, but the real impact would depend on how it is enforced. UNCERTAIN IMPACT China has applied a raft of measures to rein in property investment, including interest rate rises and rules to discourage construction of luxury homes. Some steps have specifically targeted foreign investors, who account for less than 5 percent of total investment in the property sector. Foreign investors must now secure land purchases before setting up joint ventures or wholly owned foreign enterprises in China. However, funds such as those run by ING Real Estate, Morgan Stanley , Hong Kong's Sun Hung Kai Properties , Henderson Land Development and Singapore's CapitaLand Ltd. are pouring more money than ever into China to tap a middle class hunger for new homes and rising capital values. China's urban property inflation rose to 7.1 percent in June, compared with a year earlier, from 6.4 percent in May. McGinty said some foreign investors may eventually quit China for more interesting markets if an inability to employ leverage reduces their internal rate of return. However, others said they would stay on. "We are not too worried about it. Cooling measures won't stay forever," said Robert Lie, Asia chief executive for ING Real Estate, which has raised a 0 million fund to build housing in China. ING Real Estate borrows locally, partly to hedge its currency risk. Most other foreign investors in China do the same. Some foreign property firms that have been in China for many years have strong connections with local lenders -- Chinese banks as well as international banks incorporated in China. "There is still strong interest in China, although there will be some form of slowdown in the number of transactions," said Grey Hyland, head of investment at Jones Lang LaSalle in Shanghai. He said the new approval rules would further dampen the ability of foreigners to compete with local rivals. "It's still early to say how, because these rules are still very new and being tested," Hyland said. One consequence, he added, could be to drive foreign property investors inland to second- and third-tier cities that the authorities are eager to develop and where approval is therefore easier to obtain.

SHANGHAI: A revised rule that forces shipping companies to shoulder the cost of cleaning up pollution from maritime accidents, such as oil spills, in China's waters, is likely to take effect next year, if not sooner, a senior official with China Maritime Safety Administration (MSA) said Wednesday.If the revised regulation is approved by the State Council, companies such as Sinopec, PetroChina and the China National Offshore Oil Corp (CNOOC) will be required to contribute to a special compensation and clean-up fund, Liu Gongcheng, executive director of China MSA, said.Liu told a press conference prior to the 2007 Shanghai International Maritime Forum, which kicked off Wednesday, the fund will boost the country's emergency response capabilities to maritime pollution disasters.The official declined to say how big the fund could be.The rules also include a scheme asking all ships using its seawaters to purchase insurance.Liu said the mechanism, already in the pipeline for two years, is one of China MSA's measures to handle possible oil spill pollution, as the ocean environment faces greater pressure with increased shipping traffic, including oil cargo ships to and from China's coast.Figures showed more than 90 percent of China's oil imports - 145 million tons last year - is transported by sea. Some 163,000 tankers of all sizes sailed into and out of China's ports last year, an average of 446 every day."The size of oil tankers is also getting bigger, up to 300,000 tons, which has added to the risk," Liu said. "If only 1 percent of the oil is spilled, we will be confronted with a catastrophe."Oil spills can wreak havoc on sea life, fishing and tourism. They cost millions of yuan to clean up and even more in compensation and damages, he said.The oil spill from the tanker Prestige, which sank off Spain in November 2002, leaked 77,000 tons of oil that caused several billion dollars worth of damage.In the past year, there have been several oil spills in domestic seawaters that involved 500 to 600 tons of oil, but didn't cause serious pollution due to emergency response, Liu said.Losses caused by ships using international waters can be covered by insurance in accordance with international conventions.However China urgently needs a mechanism to cover the costs many small- and medium-sized ship owners cannot afford."It is not fair to let the clean-up companies shoulder the cost, so the compensation fund can be especially useful in that situation," he said.The administration is continuing to invest in facilities and enhance China's emergency response capabilities.

English graduate Chen Xia has never been short of admirers but the 25-year-old Nanjing native has chosen to tie the knot with a soldier who has neither a college degree nor a fat pay packet. Her mother, who married a soldier more than 30 years ago, well knows what Chen has in store. "Married but alone, you have to handle most domestic affairs yourself, as your husband is mostly away," said Zhang Yufen, Chen's mother. Zhang had several frank discussions with her daughter but the two ended up in agreement. "You can be free of anxiety while marrying army men. They are always reliable and loyal to the family," said Chen. In an era when young people are depicted as calculating and materialistic when choosing spouses, Chen is one of many who are keen on a partner in military uniform. A recent survey found that nearly two in three of 1,500 respondents would like to marry servicemen and women. Personal integrity, marital fidelity, stable jobs and increasing salaries are the top reasons given for the choice, according to the poll conducted by China Youth Daily. "The survey results are perhaps one of the best gifts for the August 1 Army Day," said a 26-year-old soldier surnamed Wu in Nanjing, capital of Jiangsu Province. "It makes me more confident of finding a dream girl." Marrying a soldier was popular before the 1980s, which meant not only a decent job but also glory to the whole family. "Many friends envied me when I married Chen Xia's father. He was a heroic figure in our eyes," said Zhang. But as the country turned more peaceful and prosperous, soldiers now live reclusive lives in camps and campuses. It has also become difficult for them to get a spouse as they are confined to a small social circle and don't enjoy a high pay. "Frankly speaking, I hesitated while Chen Xia planned to get married; afraid that she would suffer the same loneliness and economic pressure than I used to," said Zhang. "But I guess she knows the merits of marrying an army man."

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.

NANJING - The legislature of the eastern province of  Jiangsu has amended the law to clearly define sexual harassment and allow complainants to sue.The Standing Committee of the Jiangsu Provincial People's Congress on Thursday passed the revised Jiangsu Provincial Measures for Implementing China's Law on Protection of Women's Rights, saying "sexual harassment of women in the form of spoken and written language, images, electronic information and bodily gestures is prohibited." The measures allow those who claim that they have been harassed to report such cases to employers, authorities and the police, which must prevent or stop such behavior. Women can also sue those they contend harassed them.Although sexual harassment was included in an amendment of the national law in 2005, the legislation didn't clearly define harassment, which made it difficult to prove in court, said Wang Lasheng, vice chairman of the Legal Affairs Committee of the Jiangsu Provincial People's Congress."A clear definition of the forms of sexual harassment will definitely help law enforcement and improve victims' awareness of self-protection," said Wang.Defining sexual harassment at the local level was a welcome attempt to supplement the national law, said Wang, adding that similar statutes have been passed in Shanghai, Zhejiang, Jiangxi, Shaanxi and Anhui provinces and Ningxia Hui Autonomous Region. These laws allow complainants to file claims or sue.