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BEIJING, Sept. 11 -- Inflation eased to its lowest level in August since June last year, giving the government more policy leeway to prevent an economic slowdown.     The consumer price index (CPI), the main gauge of inflation, rose 4.9 percent year-on-year, compared to 6.3 percent in July, the National Bureau of Statistics (NBS) said yesterday.     The CPI has been sliding since May, but still many economists were caught by surprise by last month's drop because they had forecast it to be above 5 percent. The month-on-month fall was only 0.1 percent.     But last month's producer price index (PPI), a gauge of factory gate inflation, rose a record 10.1 percent year-on-year, after jumping 10 percent in July.     Nevertheless, the low CPI figure gives the government "more policy room to sustain growth," Citigroup economist Ken Peng said.     He suggested the authorities consider further policy changes favoring growth, which could shift to full gear next month.     Economic growth has been slowing since the second quarter of last year, when the government adopted monetary and credit measures to rein in inflation and prevent the economy from overheating further.     Yet economists began warning of a recession since the beginning of this year, especially because the country's export sector, a key growth engine, started losing steam on weaker foreign demand.     The government responded it would strive to maintain a stable economic growth this year, leading to speculation that it would soon ease the tightening measures. But any step to stimulate the economy, such as lower interest rates or faster loan growth, risks spurring demand and stoking inflation again.     "Unless there's an abrupt slowdown, there's no need for a major change in the marco-control measures," said Lian Ping, an economist with the Bank of Communications. "The current 10 percent GDP growth is largely seen as acceptable."     The CPI rise is likely to stabilize around 5 percent during the rest of the year, he said, because food prices may continue to drop. Inflation fell last month mainly because of a drop in food prices, which make up one-third of the inflation basket. Food prices slid 0.4 percent from July.     A falling inflation rate gives the government a good chance to lift its price control on products such as fuel, water, and electricity further, Lehman Brothers economist Sun Mingchun said.     In the past year, policymakers have managed to freeze the prices of public utilities, and fuel and power tariff. They introduced temporary price curbs on some other goods, too, to rein in inflation.     Yet soaring labor and raw material costs, reflected in the rising PPI figure, have eaten into the profit of local enterprises because price control and fierce competition prevented them from passing the inflationary pressure on to consumers.     Such price liberalization could make the CPI rise again in the next few months, Sun said.     "But if implemented in a gradual and orderly way, inflation should remain below 6 percent year-on-year during the rest of the year."

BEIJING, May 22 -- The State Council yesterday ordered government departments to cut spending by 5 percent this year to free up money for quake reconstruction.    The money will help to finance a 70 billion yuan (10 billion U.S. dollars) fund for rebuilding after the May 12 quake, which killed tens of thousands, the Cabinet said on its website. Chinese Premier Wen Jiabao speaks on the quake relief work during a meeting of the State Council, in Beijing, capital of China, May 21, 2008.The death toll from the quake rose to 41,353 by noon yesterday, and 274,683 were injured, according to the Information Office of the State Council. The number of missing has been put at 32,666.     The overall impact of the quake on China's fast-growing economy is expected to be limited. Sichuan is a major source of coal, natural gas and some farm goods but has little industry.     The quake destroyed thousands of buildings, knocked out power and phone services and damaged factories, mines and other facilities. State-owned and private companies suffered 67 billion yuan (9.5 billion U.S. dollars) in quake losses, according to the government's preliminary estimates.     Yesterday's Cabinet statement gave no details of how much money the spending cuts were expected to raise. But the reported budget for the central government this year, including the military, is 1.3 trillion yuan (187 billion U.S. dollars) - and 5 percent of that would be 65 billion yuan (9.3 billion U.S. dollars).     Beijing will set a moratorium on new government building projects, Premier Wen Jiabao told a State Council meeting.     Wen said the quake "added uncertainties" to the economy but he said it was stable and its fundamentals were not affected, Xinhua reported.     Donations to quake-hit regions reached 16 billion yuan (2.29 billion U.S. dollars), of which 1.76 billion yuan (250 million U.S. dollars) has been forwarded to affected areas, according to the information office.     In addition, the Ministry of Finance announced yesterday that it has allocated another 660 million yuan (94.83 million U.S. dollars) in relief funds to quake-stricken areas.     As the summer draws near, the quake-hit regions are facing mounting pressure to prevent epidemics.     About 45,000 medical workers are working in all quake-hit counties and townships in Sichuan, according to the Ministry of Health.     About 1,196 tons of disinfectants and bactericides were distributed, the ministry said in a statement.     In seven out of the 11 worst-hit counties, sanitation work has been completed and in the other four, one-third of the townships have been covered.     According to local health departments, doctors found 58 cases of gas gangrene, a bacterial infection that produces gas within gangrenous tissues, as of Sunday.     But officials said the virus does not affect people without open wounds.     Meanwhile, rescuers are still fighting time to find survivors.     According to the Department of General Staff of the People's Liberation Army, rescuers saved and evacuated 396,811 people to safe places as of yesterday noon.     A total of 6,452 have been dug out alive from the rubble, with 77 rescued in the 36 hours to noon yesterday.     The Ministry of Health said that 3,424 people injured in the quake had died in hospitals.     Hospitals have taken in 59,394 injured people since the quake, of whom 30,289 were discharged, the ministry said.     Power has been restored in most parts of quake-hit areas but Beichuan County, one of the worst hit, remained blacked out and electricity in Hongyuan was cut off again due to aftershocks, the State Electricity Regulatory Commission said in a statement.     Experts yesterday said there was no need to worry that the 33 lakes in Sichuan - formed after landslides blocked rivers - would burst their banks.     "Generally speaking, those lakes are safe because the flood season is yet to come," said Liu Ning, general engineer of the Ministry of Water Resources.     "We are monitoring the lakes round the clock," he added.

PYONGYANG, June 18 (Xinhua) -- The top leader of the Democratic People's Republic of Korea (DPRK), Kim Jong Il, met visiting Chinese Vice President Xi Jinping on Wednesday to highlight the warm ties between the two neighboring countries.     At the meeting, Xi conveyed Chinese President Hu Jintao's greetings to Kim. He also congratulated the leader on the 60th anniversary of the founding of the DPRK, wishing it even more and greater achievements in the future.     Kim, who is the general secretary of the Workers' Party of Korea (WPK) and chairman of the National Defence Commission, asked Xi to convey his greetings to President Hu, general secretary of the the Central Committee of the Communist Party of China (CPC). Kim Jong Il (R), top leader of the Democratic People's Republic of Korea (DPRK), meets with visiting Chinese Vice President Xi Jinping in Pyongyang, June 18, 2008.    Welcoming Xi, Kim said his visit to the DPRK reflects the great importance attached by China to developing the traditional friendly relations between the two countries.     Xi, a member of the Standing Committee of the CPC Central Committee's Political Bureau, is in Pyongyang for an official goodwill visit at the invitation of the WPK Central Committee and the DPRK government.     The DPRK is the first stop on Xi's first overseas trip since taking office earlier this year. He is also scheduled to visit Mongolia, Saudi Arabia, Qatar and Yemen.     Kim once again expressed condolences over the loss of life in the severe earthquake in China's Sichuan province. He praised the courageous deeds of the CPC, the Chinese government, the armed forces and the people of China during the rescue mission. Kim Jong Il (2nd R Front), top leader of the Democratic People's Republic of Korea (DPRK), and visiting Chinese Vice President Xi Jinping (2nd L Front) walk to the meeting hall in Pyongyang, June 18, 2008.Their work fully demonstrated the advantages of the socialist system with Chinese characteristics. said Kim.     He expressed the belief that under the strong leadership of the CPC and the Chinese government, the Chinese people will definitely be able to overcome the aftermath of the earthquake and successfully rebuild the quake-affected areas.     He also wished the Beijing Olympic Games all success.     Following the devastating earthquake of May 12, the WPK, the DPRK government and the people of the country expressed condolences to China in various forms, and also provided relief assistance, Xi said.     He hailed the successful Beijing Olympic torch relay in Pyongyang.     The Chinese vice president expressed his heartfelt gratitude for the support, which he described as a token of the deep feelings and profound friendship the people of the DPRK nurture toward the Chinese.     China is taking active steps to rebuild the quake-affected areas, he said, adding that his country is confident and fully capable of achieving success in combating the natural disaster while maintaining social and economic development.     China is capable of hosting a high-level Olympic Games with unique characteristics, Xi emphasized.     He said the traditional friendship between China and the DPRK was fostered by earlier generations of leaders from both countries and forged with the blood of the two peoples.     The people of the two countries have always understood, sympathized, supported and helped each other, said Xi, adding that the China-DPRK friendship is inalterable and has withstood international flux.     He said China is ready to work with the DPRK to add momentum to the development of bilateral relations.     China is ready to maintain high-level contact and deepen trade and economic cooperation with the DPRK, he added.     Xi made special mention of the China-DPRK friendship year to beheld jointly in 2009. He also proposed the two countries strengthen coordination on regional and international issues of common concern.     Kim said the DPRK-China friendship is an invaluable heritage handed down by the previous generations of revolutionaries of either nation. This friendship has been and will always be an invaluable treasure, he added.     It is the firm and unchangeable stance of the DPRK to unswervingly work for the development of the traditional DPRK-China friendship, the top DPRK leader pledged.     The year 2009 marks the 60th anniversary of the establishment of diplomatic ties between the two countries, which will jointly host DPRK-China friendship year activities.     The DPRK is ready to take this opportunity to join hands with China to further advance friendly and cooperative mutual relations, Kim said.     The two leaders also exchanged views on the six-party talks aimed at denuclearizing the Korean Peninsula.

GENEVA, July 19 (Xinhua) -- Related parties should enhance diplomatic efforts and show flexibility in order to find a negotiated solution to the Iranian nuclear issue, a senior Chinese diplomat said here on Saturday.     "Currently there is a rare opportunity for promoting the resumption of negotiations on the Iranian nuclear issue," said Chinese Assistant Foreign Minister Liu Jieyi, who represented China at a meeting here with Iran's top nuclear negotiator Saeed Jalili.     "Enhanced diplomatic efforts and flexibility are needed for an early resumption of negotiations so that a long-term, comprehensive and appropriate solution could be found for the nuclear issue," he said.     Saturday's meeting was led by EU foreign policy chief Javier Solana and attended by senior diplomats from the United States, Russia, China, Britain, France and Germany.     The United States was represented by Undersecretary of State William Burns at the meeting. His participation was seen as a shift of long-standing U.S. policy toward Iran, as Washington had always insisted that it would not talk with Tehran unless it halts its uranium enrichment activities.     "It's highly significant that for the first time the political directors of all six countries with Solana were talking with our Iranian colleagues," Liu told reporters.     "It was the shared hope of all parties participating in the meeting that we find a negotiated solution to the nuclear issue," he said.     Both Solana and Jalili said Saturday's meeting was positive and constructive and promoted understanding of each other's positions.     They also agreed to talk again by phone or in person in about two weeks.     At the meeting, Iran failed to give a clear answer to a package of incentives presented by the six countries last month over the resumption of nuclear negotiations.     "We hope very much we get the answer and we hope it will be done in a couple of weeks," Solana told a press conference following the meeting.     The package of incentives suggests that Iran get a temporary reprieve from economic and financial sanctions in exchange for freezing its enrichment activities. Preliminary negotiations over a permanent halt could then begin.     "The package is supported by all six powers ... we think if negotiations could be resumed on this basis and finally a negotiated solution could be found, it will be a very good way out," Liu said.

DUSHANBE, Aug. 28 (Xinhua) -- Leaders attending the Shanghai Cooperation Organization (SCO) summit in the Tajik capital issued a joint declaration Thursday on security, energy and several other issues.     The declaration was signed by Chinese President Hu Jintao, his Russian counterpart Dmitry Medvedev, Kazakh President Nursultan Nazarbayev, Kyrgyz President Kurmanbek Bakiyev, Tajik President Emomali Rakhmon and his Uzbek counterpart Islam Karimov.     ON USE OF FORCE     The leaders agreed that any attempt to solve problems by merely resorting to force could not work and would only hinder a comprehensive settlement of local conflicts, the declaration said.     A comprehensive solution to existing problems can be found only by taking into account the interests of all parties involved and including them all in the negotiation process rather than isolating any of them, said the declaration.     Any attempt to strengthen a country's own security at the expense of that of others is detrimental to maintaining global security and stability, it said.     On the issue of South Ossetia, the SCO members expressed their deep concerns over the tension triggered by the South Ossetia conflict, and called on relevant parties to solve existing problems peacefully through dialogue, strive for reconciliation and push for negotiations. Chinese President Hu Jintao (3rd L) poses for group photos with other leaders of the Shanghai Cooperation Organization (SCO) member states in Dushanbe, capital of Tajikistan, on Aug. 28, 2008, during the annual summit of the organization.ON SECURITY COOPERATION WITHIN SCO     The member states of the organization were satisfied with increased cooperation within the SCO framework in their fight against terrorism, separatism and extremism, the declaration said.     The SCO members reiterated their efforts to maintain the central coordinating role of the United Nations in the global fight against terrorism, and to steadfastly implement the UN Global Counter-Terrorism Strategy and to finalize a comprehensive convention on fighting global terrorism at an early date.     The leaders also pledged to establish a mechanism of joint assessment, prevention and response to external threats and challenges to regional security.     On the issue related to the creation of a global anti-missile defense system, they stressed that the establishment of such a system will not help in maintaining a strategic balance, runs counter to international efforts towards arms control and nuclear non-proliferation, and is not conducive to enhancing trust among countries and regional stability. 　　ON ENERGY & ENVIRONMENT     Against the backdrop of global climate change, it is of special significance for the SCO members to forge close cooperation in developing new energy technology, the declaration said.     Therefore, the SCO members should strive to seek a common position to address the negative impacts of climate change and develop environment-friendly clean energy.     The leaders pledged to seek global common development through bridging the technology gap between countries and eliminating poverty under the premises of ensuring all the countries to equally enjoy the benefits of globalization.     They agreed that it was of special significance to implement responsible fiscal and financial policies, monitor capital flows, and ensure food and energy security amid a world economic slowdown.     On the issue of water resources, they said it was of vital importance for the SCO members to conduct dialogue on the efficient use of water resources.     They also promised to strengthen consultation and cooperation in the field of human rights within the UN framework and cooperate with other regional organizations and integration mechanisms on cultural cooperation and promotion and guarantee of human rights.