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BEIJING, Aug. 27 (Xinhua) -- The Chinese government will stick to an economic policy that focuses on curbing inflation for the rest of the year, a senior official on Wednesday told China's top legislature, as slowing output and rising prices loom over the post-Games economy.     Economic planners would exert themselves to increase supplies of necessities, closely track key prices and make price controls more effective, National Development and Reform Commission deputy chief Zhu Zhixin told the fourth session of the Standing Committee of the 11th National People's Congress.     "A lot of factors can drive prices up," said Zhu. "There is a strong demand for primary products, with prices hovering high on international markets, while more expensive land and labor at home will add to costs."     His statements came after China's main inflation indicator showed a deceleration in July and as the world wondered where the already slowing economy would head after the glitz of the Games.     The consumer price index was up 6.3 percent last month over July last year, lower than the 7.1 percent in June and 7.7 percent in May, as tighter monetary policies adopted last year seemed to bite.     Meanwhile, the country's economic output in the first half was 10.4 percent higher, compared with 10.6 percent in the first quarter and 12.2 percent in the first half last year.     Zhu said the output slowdown was "a moderate correction from a high level".     "The national economy is heading in the direction expected by the macro-control policy."     Zhu cited the pressures on some industries and enterprises as one of the major conflicts in the economy, saying it would take time for the latest supportive policies to show an effect and for companies to adjust.     He told the top legislature the government would continue to seek a balance between fighting inflation and maintaining growth.     Tasks for the rest of the year included improving the contribution of domestic consumption to economic growth, boosting agricultural output and increasing aid to small enterprises, he said.     The government had been focusing on preventing the economy from overheating before changing the goal to "keeping steady, rapid growth" in July.     Many analysts foresaw a loosening of the tight monetary policy to provide liquidity for enterprises, especially exporters, that were squeezed by weakening demand, credit controls and rising costs.     Earlier this month, administrators raised the export tax rebate rates for some textiles and garments, while the central bank allowed more credit to small and medium-sized enterprises.     "The fiscal and monetary policies are likely to be eased, if the current trend is a guide," said CITIC Securities analyst Zhu Jianfang. "The central bank is not expected to come up with any big tightening moves after the Olympics."

TIANJIN, Aug. 19 (Xinhua) -- Chinese Vice Premier Li Keqiang on Tuesday urged local officials and enterprises to seize opportunities and persevere in reform and opening-up to achieve stable and fast economic growth.     Efforts should be made to foster new areas of economic growth so as to reach the goal of long-term steady and fast economic development, Li said during an inspection tour from Aug. 18-19 in Tianjin, a north China port city. Li Keqiang (C), Chinese Vice Premier and member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, inspects in Tianjin, north China, Aug. 18, 2008. Li Keqiang paid a visit to Tianjin from Aug. 18 to Aug. 19.Li, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, visited local factories, construction sites, port, commercial and trade service zones and residential districts during his inspection tour.     He urged local officials to speed up efforts to build the Binhai New Area into a northern portal of the country's reform and opening up drive, a base of modern manufacturing and scientific research and application, and an international shipping and logistics center.     The Binhai New Area, a pilot reform zone, consists of the three administrative districts of Tanggu, Hangu and Dagang and eight industrial zones currently under construction.     Li stressed the importance of expanding domestic market demands in boosting economic development in an era of global economic uncertainty. He called for greater efforts to raise Chinese people' income through various channels and actively explore the rural consumption markets. Li Keqiang (C), Chinese Vice Premier and member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, inspects in Huaming Township of Dongli District in Tianjin, north China, Aug. 18, 2008. Li Keqiang paid a visit to Tianjin from Aug. 18 to Aug. 19

BEIJING, Oct. 4 (Xinhua) -- The ongoing global financial turbulence will have a limited impact on China's banks and financial system in the short run, according to officials and experts.     "We feel China's financial system and its banks are, to the chaos developed in the U.S. and other parts of the world, relatively shielded from those problems," said senior economist Louis Kuijs at the World Bank Beijing Office.     He told Xinhua one reason was that Chinese banks were less involved in the highly sophisticated financial transactions and products.     "They were lucky not to be so-called developed, because this (financial crisis) is very much a developed market crisis." Farmers harvest rice in 850 farm in Northeast China's Heilongjiang Province on Sept. 26, 2008.    A few Chinese lenders were subject to losses from investing in foreign assets involved in the Wall Street crisis, but the scope and scale were small and the banks had been prepared for possible risks, Liu Fushou, deputy director of the Banking Supervision Department I of the China Banking Regulatory Commission, told China Central Television (CCTV).     Chinese banks had only invested 3.7 percent of their total wealth in overseas assets that were prone to international tumult, CCTV reported. The ratio of provisions to possible losses had exceeded 110 percent at large, state owned listed lenders, 120 percent at joint stock commercial banks and 200 percent at foreign banks.     Kuijs noted most of the banks resided in China where capital control made it more difficult to move money in and out. Besides, the country's large foreign reserves prevented the financial system from a lack of liquidity, which was troubling the strained international markets.     "At times like this, one cannot rule out anything," he said. "But still we believe the economic development and economic fundamentals in China are such that it's not easy to foresee a significant direct impact on the financial system."     However, he expected an impact on China's banks coming via the country's real economy, as exports, investment and plans of companies would be affected by the troubled world economy and in turn increase pressure on bad loans.     Wang Xiaoguang, a Beijing-based macro-economist, said the growing risks on global markets would render a negative effect on China in the short term but provided an opportunity for the country to fuel its growth more on domestic demand than on external needs.     He urged while China, the world's fastest expanding economy, should be more cautious of fully opening up its capital account, the government should continue its market reforms on the domestic financial industry without being intimidated.     Chinese banks had strengthened the management of their investments in overseas liquid assets and taken a more prudent strategy in foreign currency-denominated investment products since the U.S.-born financial crisis broke out, CCTV reported.

BEIJING, Sept. 17 (Xinhua) -- An executive meeting of the State Council (cabinet), presided over by Premier Wen Jiabao, on Wednesday decided to launch national comprehensive tests of dairy products and reform the dairy industry.     According to the meeting, the incident involving the tainted Sanlu milk powder reflected chaotic industry conditions, as well as loopholes in the supervision and management of the industry.     It is necessary to learn lessons, properly deal with the incident, improve the inspection and supervision system and strengthen the management of the dairy industry, the meeting said.     The meeting also reached six other decisions and ordered governments at all levels to implement them. These decisions include: Saleswomen check the returned Sanlu brand milk powders in a supermarket in Yinchuan, capital of northwest China's Ningxia Hui Autonomous Region Sept. 17, 2008.providing the best and free medical care to those sickened by melamine-contaminated milk powder,     -- confiscating and destroying all sub-standard products,     -- strictly supervising the production of dairy companies with on-site inspectors,     -- revising regulations on the supervision and management of the industry,     -- subsidizing dairy farmers and encouraging more production by those enterprises with higher-quality products and,     -- finding the cause of the incident and punishing those responsible.     The Sanlu Group, a leading Chinese dairy producer based in the northern Hebei Province, admitted last week that it had found some of its baby milk powder products were contaminated with melamine, a chemical raw material. It issued an immediate recall of milk formula made before Aug. 6.     Three infants have died so far. There are at least 6,244 infant victims of the contaminated milk powder, of whom 158, or 2.5 percent, have acute kidney failure, the Ministry of Health said on Wednesday.