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SHENZHEN -- China on Wednesday laid out a primary plan for its second pipeline of the West-East natural gas transmission project.According to the plan, construction of the 8,794 kilometer gas pipeline, which consists of one major line and eight sub-lines, will involve an investment of approximately 143.5 billion yuan (US.8 billion).The major line will extend 4,945 km, running from Khorgos in the northwestern Xinjiang Uygur Autonomous Region to Guangzhou, capital of south Guangdong Province.Construction of the pipeline will begin this year and it will go into operation in 2010. The pipeline would pass through 13 Chinese regions.It would carry natural gas from central Asian countries and Xinjiang to the economically prosperous but energy thirsty eastern and southern China areas, including Shanghai and Guangdong Province.

The central bank raised the reserve requirement ratio for banks by 0.5 percentage point yesterday to mop up excess liquidity resulting from a soaring trade surplus and increased money supply. After the increase, which will take effect on April 16, the ratio will be 10.5 percent for big bankers and 11 percent for smaller lenders. It is the third time this year the People's Bank of China has raised the ratio after similar rises in January and February. The bank reserve requirement refers to deposits banks are required to set aside as a reserve, which reduces their lending ability. "The move is directly aimed at mopping up excess liquidity," Zhao Xijun, finance professor at Renmin University of China, told China Daily, adding the ultimate objective is to maintain stable growth of the economy. In recent months, the trade surplus has expanded rapidly and money supply remained at a high. In the first two months, China's trade surplus amounted to .61 billion, a stunning jump of 230 percent over the same period last year. In February, M1, or cash in circulation and deposits, increased 21 percent year on year, a record high for the past 37 months, indicating increased liquidity pressure. Meanwhile, banks have accumulated 11.1 trillion yuan (.44 trillion) of idle funds that can be used for lending. In January and February, domestic banks extended new loans of 982 billion yuan (7 billion), about 260 billion (.6 billion) more than a year ago. As a result, urban fixed-asset investment has picked up to 23.4 percent year on year in the January-February period from about 20 percent in the fourth quarter of last year, reversing the trend of a slight slowdown since last July. On another front, the consumer price index rose to 2.7 percent, close to the warning line of 3 percent, in February. "The central bank has been closely monitoring the growth trends of the economy and is taking preemptive measures to keep it on the right track," said Zhao. Such a strategy is different from past years, when it seemed to have resorted to rather drastic measures to seek instant regulatory effect, said Zhao. The central bank raised interest rates three times in the past year; the most recent of which came into effect on March 18. Tang Min, chief economist with the Asian Development Bank in China, said yesterday that the adjustment in the reserve requirement ratio may be followed by another hike in the interest rate.

Police will charge 38-year-old Wu Shengli next week with kidnapping and injuring Wang Bingrong, Party chief of Weining County in southwestern Guizhou Province, on April 13. "We are making final preparations to conduct legal proceedings for the procuratorate departments," a police officer told China Daily yesterday. Wang is still in hospital, according to an official of the county office. The Guangzhou-based Nanfang Weekend reported the case yesterday. According to the newspaper, the kidnapping occurred at the Party chief's home at about 8 pm and the kidnapper demanded a ransom of 21 million yuan (.73 million) for his release. Wang tried to call a local finance official for help, but he thought Wang was playing a joke on him. It was not until the next morning when the official received a second call from Wang that public security departments were alerted. Wang was found seriously injured and rushed to hospital. "There were three big wounds on his head," one of Wang's nurses from Weining County People's Hospital said on April 20. "Surface wounds have healed, but there is still a hematoma inside his head." Wu, from Hubei Province, was captured "without difficulty" and put under criminal custody, the newspaper said. He used to work as a truck driver for a local gold mining company. While officials remain tight-lipped about the case, rumors of why Wang was targeted have spread. "It is a pure kidnap case for money, and there is nothing between Wang and the kidnapper," Li Zhengchao, a local official told the Guangzhou newspaper. But others are not convinced given that Weining is a remote county and kidnapping a top official poses high risks. Two mine explosions in the coal-rich county last May and June killed 20 workers, leading to the shutdown of more than 400 illegal mines. Wang is believed to have ordered the closure of more than 2,000 illegal mines in one year. In Weining, Wang is known for his boldness in streamlining local government bodies. Over-staffing of departments has been a problem in the county. For example, there are as many as six or seven vice-directors for a small department, as compared to two, regulated by the State. Wang's reform has reduced the ranks by more than 100 senior officials. "Many officials could previously stay in their posts until aged 58, but now they have to step down at 50," said a local official. Last November, Wen Jiangang, the former head of Xingren County, was stabbed to death together with five other family members. He was also known for his tough stance on coalmine safety. Wen had closed more than 300 illegal coalmines within six months.

BEIJING - The number of commercial bribe cases dealt with by Chinese courts rose to 4,406 in the first seven months, an increase of 8.2 percent over the same period of last year, according to the Supreme People's Court (SPC) on Saturday.Xiong Xuanguo, vice-president of the SPC, said the number of cases featuring corporate wrong-doings rose 37.3 percent and cases relating to individual employees of companies jumped by 52.1 percent.Of the 3,748 commercial bribery cases that have been closed this year, 94.1 percent involved civil servants, Xiong said.A total of 31,119 commercial bribery cases were dealt with in China in the past two years before August 2007, with 7.079 billion yuan (US2.51 million) involved, said Li Yufu, deputy director of the leading group on anti-commercial bribery under the Central Committee of the Communist Party of China.

The average pork price has dropped to 12.61 yuan this week, 9.61 percent lower than the peak price on August 9, said China's economic planner after pork prices nearly doubled in the past eight months due to short supply and mounting production costs.The prices have seen a consecutive drop for the eighth week, down by 3.45 percent from the end of August, as the piglets raised since May and June grew ready for the market to add to the pork supply.Pigs daily butchered in 36 major cities have increased by 12.6 percent from August, and the supply is expected to keep rising, said the National Development and Reform Commission.But the Ministry of Commerce said the decline in the pork prices would probably stop as demand surges during the ongoing National Day holiday and feedstuff prices stay high.The soaring pork prices is a major contributor to the general food price hikes that drive up the consumer price index to a 6.5 percent increase in August.