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BEIJING - The National Grid of China said power could be restored partially within the day in the worst-hit region in central China's Hunan Province, ending the eight-day blackout caused by snow.Local residents buy candies for the upcoming Spring Festival in Chenzhou, Central China's Hunan Province, February 1, 2008. Power supply in Chenzhou City has been cut off during the past eight days, leaving thousands of households in dark and coldness. [Xinhua] "Many power facilities in Hunan were damaged due to repeated extreme weather changes," said Yin Jijun, deputy director of the international liaison department of the National Grid. "As the weather deteriorated again, the regional power grid, in particular the southern grid in the province, is facing acute challenges."A new round of snow started to hit central, south and east China regions on Friday, adding to the woes caused by previous snowfalls.Hunan is one of the hardest-hit areas for the past three weeks. Power supply in Chenzhou City has been cut off during the past eight days, leaving thousands of households in dark and coldness. Hengyang and Yongzhou cities also experienced blackouts in some areas.To address the situation, Yin said the National Grid is working all out to ensure security of the main power network in southern Hunan, especially in Chenzhou."We will strive to partially restore electricity supply in Chenzhou on Saturday," Yin said.

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by relevant provisions of WTO agreements."Other preferential policies on income tax pertinent to the disputes have been repealed or will be repealed along with the implementation of the new Enterprise Income Tax Law of China," the statement added.According to the Chinese mission, the MOUs will be notified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.

China is moving in the direction of raising its caps on foreign ownership in banks but has no timetable for doing so, Liu Mingkang, head of the China Banking Regulatory Commission, said on Thursday. "It takes time, but it's the orientation -- we are moving forward," Liu told reporters after meeting with U.S. lawmakers on Capitol Hill. Asked whether he knew when the caps, currently set at 25 percent, would be lifted, Liu replied: "There is no timetable." U.S. Treasury Secretary Henry Paulson has been pushing hard in an effort to get China to raise the caps and improve the access U.S. firms have to China's financial sector. China's central bank governor, Zhou Xiaochuan, also said China needed to further assess the economic situation before deciding on more monetary tightening measures. "We already have some tightening policies, so we are not hurrying to make any further -- it takes time to look at the feedback," Zhou said. Liu and Zhou were part of a top-level Chinese delegation in Washington for two days of talks with Bush administration officials hosted by Paulson, as well as meetings with legislators upset over the huge U.S. trade deficit with China.

Yichang - Construction of a tunnel under the Yangtze River that will form part of a gas pipeline project running from Sichuan Province to Shanghai was completed Monday.The 1.4-km, 3.08-m diameter tunnel sits 20 m beneath the riverbed and connects two wells on either side of the river in Yichang city, Hubei Province, Liu Juzheng, head of the Hubei section of the pipeline, said.With a total length of 2,203 km, the pipeline will serve as an "energy artery" as part of the West-East gas project, Liu said.The pipeline is expected to channel 12.1 billion cu m of natural gas a year from the Puguang field in Sichuan to central and eastern regions of the country, including Chongqing Municipality, the provinces of Hubei, Anhui, Jiangxi, Jiangsu and Zhejiang, and Shanghai Municipality.The tunnel, which took 325 days to complete, is the first of five to be built under the Yangtze.Industry experts say the new pipeline, which will cost 62.7 billion yuan (.4 billion) to build, will provide an opportunity to develop western regions based on their rich natural resources.Chen Deming, vice-minister of the National Development and Reform Commission (NDRC), said the pipeline will be completed in late 2010 and the gas it transports will help reduce carbon dioxide emissions by tens of millions of tons a year.Figures from the China Petrochemical Corporation (Sinopec) put Puguang's proven reserves at 356.1 billion cu m. The country has total proven natural gas reserves of about 2.66 trillion cu m.The government has been promoting the use of natural gas to improve energy efficiency and reduce air pollution.Under an NDRC proposal on natural gas development, the government plans to increase the natural gas pipeline network to 44,000 km by 2010 to meet demand.Although China's natural gas output will reach 94 billion cu m in 2010, up from 58.6 billion in 2006, an additional 16 billion cu m a year will still have to be imported to meet demand, Sinopec said.In Shanghai, demand for natural gas soared from 4 million cu m in 2003 to 1.9 billion in 2005.In 2004, China National Petroleum Corp (CNPC) opened its West-East gas pipeline, which runs more than 4,000 km and channels 1.2 billion cu m of gas a year to Shanghai from the Tarim Basin in the country's westernmost region of Xinjiang.CNPC is to build a second West-East pipeline to carry gas imported from central Asia to the Pearl and Yangtze river deltas. Construction will begin next year with the line, which is designed to carry 30 billion cu m a year, becoming operational in 2010.

SINGAPORE: China and the United States plan to set up a defense hotline aimed at improving military relations, a top Chinese general said over the weekend. Zhang Qinsheng, deputy chief of the general staff of the People's Liberation Army, made the remarks at the plenary session of a three-day security summit known as the Shangri-La Dialogue. He said the issue of the hotline between the Chinese military and the US Defense Department would be settled when he visits the United States in September for the ninth Sino-US defense talks. Zhang also told the summit that China's defense budget is authentic. As the Chinese military gradually modernizes, some have raised questions over "military transparency", and voiced suspicions on China's defense budget. So it is necessary to clarify the matter, Zhang said. "In China, defense budgeting must follow a set of strict legal procedures, and the published budget is true and authentic," he said. He added that the increased proportion of the defense budget is mostly used to make up for inflation, improve the welfare of military personnel and logistics support. "Given the multiple security threats, the geo-political environment, the size of the territory, and per-capita expense, the Chinese defense expenditure is small by any yardstick," he added. He stressed that "China is gradually making progress in military transparency following the principles of trust, responsibility, security and equality". The annual Shangri-La Dialogue, named after the Singapore hotel at which the event has been held since its launch in 2002, and organized by the London-based International Institute for Strategic Studies, opened on Friday. It gathered defense ministers and top officials from 26 countries and regions in the Asia-Pacific region and Europe to address major regional security issues and defense cooperation. Also at the meeting, the US and China turned down the heat on a dispute over Beijing's military build-up, with US Defence Secretary Robert Gates expressing optimism about future relations. Gates downplayed past US rhetoric on China's military might. "As we gain experience in dealing with each other, relationships can be forged that will build trust over time," Gates said. China Daily - Agencies