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BEIJING, Feb. 6 (Xinhua) -- The worst drought in half a century in northern China will continue until next month, although it will be eased slightly by rainfall forecasted for the next ten days, according to the China Meteorological Administration (CMA) on Friday. In March, rainfall in most parts of the wheat-growing areas in northern China is expected to be slightly less or close to normal. However, the wheat crops in Hebei, Shanxi, Shaanxi, Shandong, Henan and Anhui will continue to suffer, said Xiao Ziniu, director of the National Climate Center (NCC) under the CMA said at a videoconference. Workers of a power company help a farmer to irrigate the field in Wuhe County, east China's Anhui Province, Feb. 5, 2009. China raised the drought emergency class Thursday from level two to level one, the highest alert, in response to the worst drought to hit northern China in half a century, according to a State Council meeting.China declared the highest level of emergency on Thursday in response to the rare drought which began in November. President Hu Jintao and Premier Wen Jiabao have ordered all-out efforts to combat the severe drought in the country's vast wheat-growing area to ensure a good summer harvest. About half of the total, or 78.77 million mu (5.25 million hectares) of the affected wheat lands have been irrigated in the nation's eight wheat-growing provinces as of Feb. 5, according to data released by the Ministry of Agriculture (MOA) on Friday. Soldiers of armed police force help a farmer to irrigate his field in Huainan, east China's Anhui Province, Feb. 5, 2009. The ministry said it would offer farmers subsidies on irrigation equipment purchase to aid the relief work. Prices of the facilities should not be higher than the market price for last year. Buying water pump and the watering machinery will be subsidized to meet the urgent demand of the anti-drought effort, said an official with the ministry, stressing that the product quality should be insured. The area of affected crops has expanded to 161 million mu by Feb. 6. 4.37 million people and 2.1 million livestock are facing drinking water shortage, according to data released by the Office of State Flood Control and Drought Relief Headquarters. People barrel drinking water supplied by the local government at Chengguan Township in Ruyang County of Luoyang City, central China's Henan Province, Feb. 4, 2009. The city had received a reduced effective rainfall since October 2008, almost 80 percent less than in the same period of previous years. The local government has allocated some 25 million yuan (3.65 million U.S. dollars) for drought relief and crops protectionThe scarcity of rain in some parts of the north and central provinces is the worst in recorded history, as the drought spanned from autumn to winter -- a weather trend not witnessed in years, according to Sun Zhengcai, the Minister of Agriculture. The situation in some areas is extremely severe, he said. Lack of rain has created a layer of three-to-ten-centimeter of dry soil in many parts of northern China, Sun said. As the drought will not be relieved in the short-run, more seedlings are likely to be killed as spring approaches, which could threatened the summer harvest. Photo taken on Feb. 5, 2009 shows a dead wheat seedling in the farmland of Taiping township of Huining County, northwest China's Gansu Province. The county has suffered from serious drought since September 2008 with about 150,667 hektares of farmland and 184,000 people and 326,000 livestocks short of water. MOA data showed more than 2.3 million mu of wheat seedlings in Henan, Anhui and Shandong provinces had perished. This year's summer harvest became more unpredictable as Puccinia striiformis, or stripe rust, one of the most damaging wheat disease began to show signs of spreading across the nation, MOA warned. The dangerous disease, which could cause losses up to 40 percent, has affected more than 11.3 million mu (753,000 hectares) of wheat in seven provinces, 4.6 million mu more than the same period last year. The northwestern Gansu and Ningxia saw the worst outbreak in 19 years.
BEIJING, March 3 (Xinhua) -- A Taipei court has rejected here Tuesday former Taiwan leader Chen Shui-bian's appeal against his detention and ordered that he be held in custody for a further two months, starting on March 26. According to the island's law, a defendant whose maximum, basic, potential sentence is below ten years should not be held for more than three months during trial. If necessary, courts can prolong the detention for no more than two months every time. The detaining period can be prolonged for at most three times. However, Chen Shui-bian was accused of many corruption charges and his most severe basic sentence could be life, which made the court consider prolonging his detention more than three times. Chen was first detained on Dec. 30, 2008. According to the resolution made Tuesday by the Taipei court, the charges against Chen were very severe, and he had repeatedly disturbed the judicial procedure to protect himself and delay the litigation. "Under the current circumstances, it will be very hard to hold more trials if Chen Shui-bian is not detained," the court said in the resolution. It added that since Chen was likely to destroy or change evidence and collude with witnesses, it wouldn't be effective enough to confine his living compared to detention. "Thus Chen's appeal for repealing the detention was rejected," it said. Chen and his wife are accused of taking bribes worth 100 million New Taiwan dollars (29 million U.S. dollars) and 6 million U.S. dollars in a corporate land procurement, and the couple are also allegedly involved in deceivingly pocketing over 104 million New Taiwan dollars of special funds. Chen and his collaborators are also accused of laundering the illegal income.

BEIJING, March 26 (Xinhua) -- China's central bank governor has spoken highly of the government's rapid responses to the current global financial crisis, featuring decisively adopting a proactive fiscal policy and an adaptively easing monetary policy, and launching a bundle of timely, targeted and temporary policies and measures. The prompt, decisive and effective policy measures adopted by the Chinese government demonstrates "its superior system advantage when it comes to making vital policy decisions," says Zhou Xiaochuan, president of the People's Bank of China (PBC), in an article entitled "Changing Pro-cyclicality for Financial and Economic Stability." It is Zhou's third article published on the central bank's official website (WWW.PBC.GOV.CN) this week to discuss the issue of the current global financial crisis. His first and second articles, published on Monday and Tuesday, are entitled "Reform the International Monetary System" and "On Savings Ratio," respectively. In the third article, the 61-year old central bank governor tries to find out the root causes for the current financial crisis, including but not limited to lessons on monetary policy, financial sector regulations, accounting rules. The top Chinese banker says he wants to stimulate debate and discussions on some of the pro-cyclical features in the system, possible remedial measures, and how monetary and fiscal authorities can play their professional roles at times of severe market distress. "Financial crises normally originate in the accumulation of bubbles and their subsequent bursts. Usually, economists pay a lot of attentions to pro-cyclicality on the macro level. However, on the micro level, there are quite a number of notable pro-cyclical features embedded in the market structure today, which should be addressed as we deal with the current crisis and reform the financial system," he says. Zhou suggests that in the current market structure, more counter-cyclical mechanisms or negative feedback loops on micro-level should be put in place to sustain a more stable financial system. In the article, he notes that rating problems and herding phenomenon arise from outsourcing. The global financial system relies heavily on the external credit ratings for investment decisions and risk management, giving rise to a prominent feature of pro-cyclicality, according to the central bank governor. "Economic upswings produce euphoria and downturns generate pessimism," he says, "Many market players adopting ratings from the three agencies and using them as the yardstick for operations and internal performance assessments clearly result in a massive "herd behavior" at the institutional level." Zhou points out that some market players seem to have forgotten that the ratings are no more than indicators of default probabilities based on past experiences but were never meant to be guarantees for the future, he says. "Once problems take place, as we have seen during the current crisis, fingers are pointed to the rating agencies," he says. He suggests that financial institutions should try to rely more on internal rating in assessing risks. He calls for giving full play to the professional role of authorities in maintaining overall financial stability and establishing a counter-cyclical mechanism for capital requirement "To stabilize markets under severe stress, finance ministries and central banks need to act fast and apply extraordinary measures," he says, "Untimely or delayed response falls behind the curve and would make the outcome less than desired even if the response is correct and strong." In modern Western societies, a prolonged political process for mandates to finance ministries or central banks often miss the best timing for action, Zhou says, adding, "We have observed such cases during the current crisis." He suggests that governments and legislatures may consider giving pre-authorized mandates to ministries of finance and central banks to use extraordinary means to contain systemic risk under well-defined stress scenarios, in order to allow them to act boldly and expeditiously without having to go through a lengthy or even painful approval process. "Such systematic pre-authorized mandates would put the specialized expertise of finance ministries and central banks to the best use when markets need it the most," he stresses. The central bank governor attributes China's current success in easing the impacts of the crisis to the country's financial sector reform and ongoing macroeconomic stimulus measures In 2003, fully aware of the systemic vulnerabilities of China's banking industry, the Chinese government made a courageous and strategic decision to restructure the four state-owned commercial banks, says Zhou, who took over as the PBC governor in late 2002. In the article, Zhou gives a look back on the reforms of the country's major banks and security industry. But he warns, "We should bear in mind that despite the notable achievements in banking reform, the major banks have not gone through a full business cycle and still have much to improve. An economic slowdown will be the ultimate stress test for the robustness of the banks' strengths." According to the bank governor, irrespective of China's sound financial sector, the Chinese economy, especially the export sector, has felt the impact brought by the slowdown of the global economy. He praises the Chinese government for its plans to stimulate domestic demand and promote stable and relatively rapid economic growth, including the extra investment of 4 trillion yuan (685 billion U.S. dollars) in over two years, the ten measures to revitalize the industrial sectors, and other bolster measures to increase money supply, promote employment, reform taxes and medical and healthcare system. "Having taken the above-mentioned measures, China expect to maintain stable economic growth by boosting domestic demand and reducing dependence on external demand, thus serving as a stabilizing force in global economy," Zhou says. In overall, the macroeconomic measures have produced preliminary result and some leading indicators are pointing to recovery of economic growth, indicating that rapid decline in growth has been curbed, he concludes.
SHIJIAZHUANG, April 9 (Xinhua) -- Beijing-based Sanyuan Group successfully bid 49 million yuan (7.2 million U.S. dollars) on Thursday to buy a 95-percent stake in the Sanlu (Shandong) dairy company, previously owned by the Sanlu Group, the bankrupt dairy firm at the center of the melamine contamination scandal. The shares were put up for sale at an auction in the northern city of Shijiazhuang, capital of Hebei Province, according to sources with the Hebei Jiahai Auction Co. Ltd. Four companies participated in the auction, which started at 10a.m., with the opening bid of 33 million yuan. "The company is happy with the result," said a representative of Sanyuan after the auction, but he refused to comment further. Sanlu (Shandong), which was set up in 2006, specializes in making and selling liquid milk products. The company changed its name to Shandong Ecological Pasture Co. Ltd. in October last year. The other three bidders were Beijing investment consultancy Tongde Tongyi, a Hebei food company Xiangyao, and Wandashan dairy company in northeast Heilongjiang Province. Auctioneer Yuan Guoliang told Xinhua that "the four bidders had clear idea about the value of the shares, and the atmosphere was tense." However, the sale of a Sanlu's 70-percent stake in the Tangshan Sanlu company had been revoked just before the auction. Sanyuan Group successfully bid 616.5 million yuan to buy Sanlu's core assets on March 4. Sanlu Group, which was based in Shijiazhuang, had been China's leading seller of milk powder for 15 years until the melamine scandal broke in September last year. The group's revenue hit 10 billion yuan in 2007, when Sanyuan's revenue was only 1 billion yuan.
BEIJING, March 10 (Xinhua) -- Premier Wen Jiabao said here Tuesday China must deepen reforms and further open up as the country tackles economic woes. The policy of reform and opening up is the key choice that determines the future of China in the contemporary era and the country's powerful weapon in fighting the global financial crisis, said Wen when joining a panel discussion with lawmakers from the Inner Mongolia Autonomous Region. "The more difficulties we face, the more firmly we should stick to reforms and opening up," Wen told the lawmakers who are attending the annual session of the National People's Congress (NPC), the top legislative body. Chinese Premier Wen Jiabao (front R) joins a panel discussion with deputies to the Second Session of the 11th National People's Congress (NPC) from north China's Inner Mongolia Autonomous Region, in Beijing, capital of China, March 10, 2009. The country should improve its development model with the spirit of reform and innovation and forge its advantage in international economic cooperation and competition by adhering to opening up, said Wen. "Only by deepening reforms can we continuously perfect the socialist system and fully mobilize the enthusiasm and creativity of the people ... only by opening up can we learn from the achievements of human society and better tap the domestic and foreign markets and resources," he said. Other senior leaders stressed more efforts for people's well-being and economic development Tuesday. Changchun (front L), member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, joins a panel discussion with deputies to the Second Session of the 11th National People's Congress (NPC) from southwest China's Guangxi Zhuang Autonomous Region, in Beijing, capital of China, March 10, 2009.Li Changchun, member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, urged for a better "soft environment" for China's development including a clean and efficient government, a democratic and just judicial system, fair play in market competition, a safe and stable society, a comfortable and convenient life, a healthy and upright morality, a sustainable environment, and a social and cultural environment conducive for the growth of young people. The government should strengthen the management of the Internet, radio and TV broadcasts, the publication market and campus environment to curb the spreading of "decadent, backward and vulgar" culture among the youth, Li said when joining a panel discussion with lawmakers from the Guangxi Zhuang Autonomous Region. A deputy to the Second Session of the 11th National People's Congress (NPC) from southwest China's Yunnan Province presents an ornament to Li Keqiang (front, L), member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, in Beijing, capital of China, March 10, 2009. Li Keqiang joined a panel discussion with deputies to the Second Session of the 11th NPC from southwest China's Yunnan Province on TuesdayVice Premier Li Keqiang told NPC deputies from the southwestern border province of Yunnan that economic development and people's welfare concerns social stability. He urged local governments to spare no efforts in creating jobs, and improving low-income housing, rural infrastructure and ecological protection. He Guoqiang (front, C), member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, joins a panel discussion with deputies to the Second Session of the 11th National People's Congress (NPC) from south China's Hainan Province, in Beijing, capital of China, March 10, 2009When joining discussions with lawmakers from the southmost province of Hainan, He Guoqiang, secretary of the CPC Central Commission for Discipline Inspection, said the tropical island should give priority to planning and environmental protection in pursuing its goal of becoming a major international tourist destination. Zhou Yongkang (C), member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, joins a panel discussion with deputies to the Second Session of the 11th National People's Congress (NPC) from northwest China's Qinghai Province, in Beijing, capital of China, March 10, 2009Zhou Yongkang, member of the Standing Committee of the CPC Central Committee Political Bureau, underscored ecological protection, ethnic unity and social harmony when discussing with NPC deputies from the northwestern Qinghai Province. Qinghai must be more aggressive in developing environmentally-friendly industries, increase the revenues of farmers and herdsmen and improve education in ethnic minority areas, said Zhou.
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