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BEIJING, Feb. 28 (Xinhua) -- China's top legislature approved the Food Safety Law on Saturday, providing a legal basis for the government to strengthen food safety control "from the production line to the dining table." The law, which goes into effect on June 1, 2009, will enhance monitoring and supervision, toughen safety standards, recall substandard products and severely punish offenders. The National People's Congress (NPC) Standing Committee gave the green light to the intensively-debated draft law at the last day of a four-day legislative session, following a spate of food scandals which triggered vehement calls for overhauling China's current monitoring system. Wu Bangguo (C), chairman of the Standing Committee of the National People's Congress (NPC), presides over the concluding meeting of the 7th meeting of the 11th NPC Standing Committee in Beijing, on Feb. 28, 2009. The NPC Standing Committee, China's top legislature, concluded its four-day session on Saturday, after approving the food safety law, an amendment to the criminal law and the revised insurance law. Winning 158 out of 165 votes, the law said the State Council, or Cabinet, would set up a state-level food safety commission to oversee the entire food monitoring system, whose lack of efficiency has long been blamed for repeated scandals. The departments of health, agriculture, quality supervision, industry and commerce administration will shoulder different responsibilities. These would include risk evaluation, the making and implementation of safety standards, and the monitoring of about 500,000 food companies across China, as well as circulation sector. The law draft had been revised several times since it was submitted to the NPC Standing Committee for the first reading in December 2007. It had been expected to be voted by lawmakers last October, but the voting was postponed for further revision following the tainted dairy products scandal last September, in which at least six babies died and 290,000 others were poisoned. "It actually took us five years to draft this law since the State Council first made legislative recommendations in July 2004.It has undergone intensive consideration, because it is so vital to every person," Xin Chunying, deputy director of the NPC Standing Committee's Legislative Affairs Commission, said at a press briefing after the law was adopted. She said although China had certain food quality control systems in place for many years, lots of loopholes emerged in past years, mainly due to varied standards, lack of sense of social responsibility among some business people, too lenient punishment on violators and weakness in testing and monitoring work. China has a food hygiene law, which took effect in 1995, to regulate issues of food safety, but many lawmakers said it was too outdated to meet the need of practice. For example, the law is far from being adequate in addressing the problem of pesticide residue in foodstuff. According to the new law, China will set up compulsory standards on food safety, covering a wide range from the use of additives to safety and nutrition labels. The law stipulates a ban on all chemicals and materials other than authorized additives in food production, saying that "only those items proved to be safe and necessary in food production are allowed to be listed as food additives." Health authorities are responsible for assessing and approving food additives and regulating their usage. Food producers must only use food additives and their usage previously approved by authorities, on penalty of closure or revocation of production licenses in serious cases, according to the law. In the tainted dairy products scandal, melamine, often used in the manufacture of plastics, was added to substandard or diluted milk to make protein levels appear higher than they actually were. "Melamine had never been allowed to be used as food additive in China. Now the law makes an even clearer and stricter ban on it," Xin said. She said the compulsory system to recall substandard food, as written in the law, would also be effective in curbing food-related health risks. Producers of edible farm products are required to abide by food safety standards when using pesticide, fertilizer, growth regulators, veterinary drugs, feedstuff and feed additives. They must also keep farming or breeding records. Offenders can face maximum fines which would be 10 times the value of sold products, compared with five times at present. If businesses are found producing or selling a substandard foodstuff, consumers can ask for financial compensation which is 10 times the price of the product. That's in addition to compensation for the harm the product causes to the consumer. For those whose food production licenses are revoked due to illegal conducts, they will be banned from doing food business in the following five years. "This is a big step to increase penalties on law violators," Xin said. Another highlight of the law is that celebrities can share responsibility for advertising for food products that are found to be unsafe. The law says all organizations and individuals who recommend substandard food products in ads will face joint liability for damages incurred. This has been a hot topic in China where film stars, singers and celebrities are often paid to appear in ads of food products. "The provisions were added out of concern over fake advertisements, which contained misleading information. Many of the advertisements featured celebrities," said Liu Xirong, vice chairman of the NPC Law Committee. Several Chinese celebrities had advertised for products of the Sanlu Group, a company at the epicenter of the tainted dairy product scandal. They were vehemently criticized after thousands of babies were poisoned by the Sanlu formula. Many people posted online demands for them to apologize to and compensate families of the sickened babies. But others argued that it was unfair to blame the celebrities as Sanlu had legal documents to prove its products safe. On tonic food, a booming industry with an estimated annual output value of 100 billion yuan (14.62 billion U.S. dollars) in China, the law prohibits any claims related to prevention or cure of illness on the product's label and instruction leaflets.
BEIJING, March 8 (Xinhua) -- Yu Xiuli, a victim of domestic violence, can turn to police for help if her husband continues to beat her thanks to a regulation which came into effect on Sunday. The 40-year-old woman in eastern Shandong Province has been bearing the cursing and beating of her husband for years, but has never thought of asking police for help. "I believed it was not the business of police to stop domestic violence so I has never thought of alerting police," said Yu. But from Sunday women like Yu could alert police if they fall victim to domestic violence according to a regulation of the province that came into effect Sunday. Many provinces in China have set up police centers to handle household violence after a national regulation that was issued in September last year requiring police to be dispatched whenever they receive a 110 emergency call regarding household violence. According to the All-China Women's Federation, domestic violence poses a severe threat to women's rights in China with the authorities receiving about 50,000 complaints annually. In fact, women in China have had more channels to protect their rights and interests. On Saturday, a hot line - 12338 for protection of women's rights was opened in eastern Zhejiang Province. The hot line was set up to provide legal help for women, including migrant workers, in Zhejiang. The Zhejiang provincial women's federation said the province has had 280,000 volunteers and 25,000 community or village centers for women rights protection. The issuing of a regulation to prevent and curb household violence has been put on the agenda of the provincial legislature this year, it said. In Beijing, the Chaoyang District People's Court opened a hot line for protection of rights and interests of women and children on Wednesday. The line was the first among the capital's court system. The hot line will offer legal aid to women and children. "The whole society has been attaching increasing attention to the protection of women's rights in marriage, employment and family life in recent years," said Shi Yan, a judge of the court. The court set up a collegial panel specially for women and children in December 2007. Similar panels have also been set up in courts of other provinces across the country to better protect women's rights.
BEIJING, April 16 (Xinhua) -- Chinese Premier Wen Jiabao said Thursday that government stimulus moves had begun to produce results and the economy was now in "better-than-expected" shape. Wen's remarks at a cabinet executive meeting came after the government said there had been positive economic changes, even though the economy grew just 6.1 percent in the first quarter, the slowest pace in a decade. The premier cited pick-ups in investment, consumption and industrial output, abundant liquidity in the banking system, and improved market expectations as signs of those "positive changes." The National Bureau of Statistics said Thursday that first-quarter industrial output grew 5.1 percent year on year, with a rise of 8.3 percent in March. It also said fixed asset investment rose 28.8 percent to 2.81 trillion yuan (413.2 billion U.S. dollars), with real growth exceeding 30 percent, while retail sales grew 15 percent to 2.94 trillion yuan. Such positive changes indicated that the government's macroeconomic policies, taken since the second half of last year, have been "timely, powerful, and effective," said Wen, who presided over the meeting. China announced a 4-trillion-yuan stimulus package last November to boost domestic demand, slashed interest rates five times since last September, unveiled support plans for 10 key industries, and projected a record fiscal deficit of 950 billion yuan this year. These measures were prompted by a collapse in exports as the global downturn took its toll on the world's fastest-growing economy. China's economic growth cooled to a seven-year low of 9 percent last year, ending five years of double-digit expansion. "However, we must also be clear-headed and understand that grounds for the country's economic recovery are not solid enough yet, as circumstances both at home and abroad remain grim," Wen warned. He said that global financial turmoil was still spreading, and was exerting a deepening influence on the national economy. The premier cited continued falling in external demands, oversupply in some sectors that would suppress industrial output growth and worsen corporate earnings, reluctance in private investment, increased difficulty in raising farmers' income, the dwindling fiscal revenue, and the acute pressure to create enough jobs. He warned against blind optimism and called for unslackened efforts to achieve the country's goals of social and economic development. China is aiming to achieve an 8-percent growth this year, which has long been held as essential for the populous developing nation. "We should anticipate more risks and difficulties ahead, expect a longer time frame within which we would be able to overcome the crisis, and get prepared with more satisfying measures." The government would focus on following moves, according to the premier. -- To bring into play measures aimed at expanding investment. The country would soon cash in the third batch of pledged central government investment. The central government has so far cashed in 230 billion yuan (33.8 billion U.S. dollars), which is part of the 4-trillion-yuan stimulus package. The government would also revise government approval of investment projects -- or loosen government grip on investment project approval, to encourage private investment, and would continue the work on stabilizing and expanding foreign investment. -- To expand consumption, and consumer spending in particular. The country would continue to improve its policy for subsidies to farmers who buy designated brands of home appliances, and stimulate spending on culture, tourism and information in the service sector. It would also try to keep spending on such items as housing and auto stable. -- "Using every possible means" to maintain stable trade growth. The government would scrap policies that could restrict exports, and extend support to exports of hi-tech and labor-intensive products. It would also increase imports of important energy resources, heavily-demanded raw materials and key technologies and equipment, and encourage domestic firms to invest overseas. -- To keep the stable development of agriculture. The country would continue to carry out policies favorable to farmers and agriculture. It would initiate the plan to increase the country's grain output by 50 million tonnes over the next 12 years. -- To promote the restructuring of key industries. The government will unveil details of the stimulus packages for10 key industries as soon as possible, and cash in the fund from central government that will be exclusively used for the restructuring and technological renovation. The Chinese government would improve policies in favor of innovation and hi-tech industries, and may cultivate new growth in sectors of new energy, energy conservation, environmental protection, bio-pharmaceuticals, telecommunications and modern services. -- To advance with efforts to improve people's livelihood. The government would make public the execution plan and documents for the huge health care reforms as soon as possible. The reforms are aimed to provide universal health care to the country's large population. It would continue to provide support to migrant workers and college graduates who are hunting for jobs. -- To make sure the financial system is providing necessary support for the economic growth. The government would adjust the market demand for capital and ensure capital is used to fuel the economic growth. It would give more support to small- and medium- sized enterprises to meet their capital demand. -- To increase fiscal revenue by making more efforts to collect taxes that are due according to laws and regulations, and at the same time cutting back on unnecessary expenditures.
BEIJING, April 9 (Xinhua) -- The Ministry of Finance has imposed a pay cap for top executives at state-owned financial institutions as the financial crisis eroded earnings of such companies in 2008, the ministry said Thursday in a circular on its website. The new rule, which came out amid rising public grumbles about huge pay packages for top executives at state-owned financial companies, outlined the basic line that pay for executives in 2008should be no more than 90 percent of the level in 2007. As of 9 p.m., two hours and half after the news was posted on the web Sina.com.cn, 584 netizens made comments. Nearly all of them were supportive of the move. The undated photo shows the gate of headquaters of the Ministry of Finance in Beijing. Total executive pay for 2008 at financial institutions - which many are still computing - must not surpass 90 percent of the 2007 levels, the Ministry of Finance (MOF) announced yesterday Under the plan, pay refers to pre-tax income, including salary, bonus, and social insurance. The rule would enhance equal income distribution and push forward reform in pay mechanism, according to the ministry. The circular said it was in line with the current domestic and international situation for executives at some state-owned financial institutions to voluntarily cut their pay despite their companies posted rising profits. Companies which had a declining income last year should slash another 10 percent based on the basic line. Reductions should be deeper if companies suffered steep drop in profits, according to the circular. The ministry demanded to narrow pay gap among executives at companies in the financial sector, calling for bigger cuts for those who received much higher pay than the average in 2007. Caps were also urged to be imposed on pay for staff at financial companies to make a clear difference in posts and performance. It is the second time that MOF had set such pay limits. In an earlier circular in February this year, MOF ordered that the 2008 salary for top executives of state-owned financial institutions should be limited within 2.8 million yuan (about 410,000 U.S. dollars). The new move aimed at avoiding salary competition between some financial institutions when deciding the salaries for their executives in 2008, said Guo Tianyong, a professor at the China Central Finance University. It is necessary to put a cap on executive salaries to prevent unfair distribution of income and a larger gap between the rich and poor, he said. In March, the government ordered a crackdown on government "hospitality" budgets, including a 15-per-cent cut in car-buying and fuel funds as well as an across-the-board halt to the building of any new office compounds before the end of 2010. Chinese Premier Wen Jiabao said the government should take the leading role in promoting frugality and should ensure government spending goes where it is most needed amid the economic crisis.
HANGZHOU, Feb. 22 (Xinhua) -- Although the world financial crisis has cast a big shadow on China's prosperous eastern coastal regions, companies in these areas are very likely to see the first gleam of economic recovery in 2009, according to experts. Entrepreneurs said their confidence stems mainly from the enlarging domestic markets and increasing demand, which are backed by the government's powerful stimulus package and a series of favorable policies. POSITIVE SIGNS EMERGE Just two months ago, more than 60,000 businessmen in the eastern Zhejiang's Yiwu small ware town -- the world's largest small commodities market -- were tasting bitterness, as they faced declining foreign demand and fewer orders resulting from the global economic downturn. However, the turning point came after the country's traditional Lunar New Year holiday in late January. On the first trading day after the holiday, the commodity hub witnessed 165,000 customers, representing an increase of 10 percent over the same day last year, and the businessmen there were expecting more customers. Compared with the stagnancy of last year, the market regained its vigor as most of the trade dealers came to find business opportunities and increase their orders for commodities. Zhejiang's neighboring Jiangsu Province saw electric consumption surge. It used 443 million kwh of electricity on the first day of February. The figure rose sharply to 680 million kwh nine days later, indicating booming industrial production. DOMESTIC MARKET EXPANDED Confidence of businessmen in Zhejiang's Haining City was also bolstered by booming economic activities and increasing demands from domestic markets. The city is famous for leather industry. "Currently, we are not as worried as we were last year when the economic turmoil spread to every corner of the markets. I am really glad to see that my goods are still welcomed," said Zha Jialin, vice general manager of Haining Leather Town Co. Ye Xuekang, general manager of Haining Jinda New Material Co., also expressed his optimism, saying the company is under normal operation and products orders from domestic customers saw obvious increase. "Some of the production lines have to operate for a full 24 hours to meet the demands," Ye said. "It was the move to shift export destinations from overseas markets to domestic ones that helped us. Although various negative factors including surging prices of crude materials and currency fluctuation have almost strangled the company, the orders from new markets greatly offset the losses in foreign markets," he said. Economists noted that the government's efforts in adding investments, expanding vast domestic markets and increasing consumption are the biggest contributions to the country's economic recovery. In September, the government presented a four-trillion-yuan (about 586 billion U.S. dollars) stimulus plan as part of its efforts to cope with the financial crisis. Adding to the plan were ten industrial revival policies, which were expected to provide several pillar sectors with fund support, tax breaks and other favorable policies. Automobile, shipment and textile industries were among those that befitted. PRUDENT OPTIMISM TOWARD THE RECOVERY Zhuang Jian, a senior economist with the Asia Development Bank, told Xinhua, "The country's economy will gradually recover. However, the process may vary largely from one region to another, depending on economic development degree, enterprise's anti-risk ability, and fortune capacity in different areas." Zhang Hanya, deputy chairman of the Investment Association of China, echoed Zhuang, saying that compared with central and western areas, enterprises and local governments in eastern regions can do a better job. Zhang described their advantage as "natural abilities" -- the coastal areas in eastern China have long been served as the battlefront or the pioneers of the country's economic reforms. "As for the local governments in eastern areas, flexible policies, sufficient capital reserves and fiscal support are the musts to guarantee economic development," he said. Take Shanghai, another important economic engine of China, for example. The city's new Pudong area's car sales rose 15.8 percent in January over the same period last year thanks to a quick respond to the central government's automobile revival plan. However, experts warned against blind optimism about economic recovery, as the global economic situation is still complex and changeable. Zheng Yumin, head of Zhejiang Industrial and Commercial Administration, warned enterprises to cope with the "second-wave" of crisis attack, noting exports were still experiencing a tough time, trade-protectionism sentiments in some countries may make the situation even worse. "After all, we should keep alert," he said.