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BEIJING,Aug 9(Xinhuanet) -- China's high savings rate is expected to fall substantially in coming years as its workforce shrinks, the population ages and social security spending increases, a BIS report shows.In research published by the Bank for International Settlements (BIS) on the “myth and reality” of China’s savings rate, Ma Guonan and Wang Yi found that the Asian giant needs its population to spend more in order to sustain rapid economic growth in coming years.The researchers, who were writing in their personal capacity, also reject claims that Chinese State firms have been benefiting from high savings thanks to exchange rate distortions and subsidies designed to drive economic growth.They point out that “less advantaged” and more efficient firms have been the ones posting the greatest gains in earnings in recent years rather than State-owned companies.China’s gross national savings soared from 39.2 percent of output in 1990 to 53.2 percent in 2008, far higher than the United States, which saved only 12.2 percent in 2008.Even compared to other Asian giants — Japan with 27 percent in 2007 and India with 33.6 percent in 2008 — China’s share of savings as a percentage of gross domestic product (GDP) is significantly larger.Nonetheless, the population and social trends that have underpinned China’s growth and savings rates are likely tail off significantly over the next decade, the two Chinese researchers argued.In the wake of the global slump, world leaders and economists have been asking China to spend more, rather than pin its economic growth on exports to the West, in order to help address world trade imbalances.Ma, a BIS economist and Wang, who is from the Chinese central bank, said however that the current savings trend by Chinese households will not last.The swelling working population in recent years has boosted savings in recent years, they said.In addition, large-scale corporate restructuring between 1995 and 2005 increased job uncertainty, forcing workers to set aside more money in case they were fired. The lack of a social safety net also pushed workers to make “precautionary savings.”Beyond households, government savings have also been increasing in tandem, as more is being set aside to meet pension needs which are expected to rise significantly as the population ages.However, these trends are expected to be reversed in coming years.“It is reasonable to assume that the large-scale labor retrenchment observed during 1995 to 2008 is by and large been behind us,” say the researchers.In addition, China is expected to enter into a phase of “accelerated population ageing within a decade.” This means that the workforce will decline, leading to a fall in overall income and therefore savings.At the same time, infrastructure spending is expected to continue, in order to provide for the ageing population and the urbanization of the country.

YUSHU, Qinghai, July 10 (Xinhua) -- The Chinese government on Saturday started a massive multi-million-dollar project to restore 87 monasteries damaged in a 7.1-magnitude earthquake that shook a predominantly Tibetan area in northwest China in April.Monks and officials gathered at the new site of Trangu Monastery in Yushu, Qinghai Province, for a brief ground-breaking ceremony. Monks from the 700-year-old monastery, whose former buildings collapsed in the quake, held a prayer service, chanting sutras and turning prayer wheels to mark the start of the rebuilding.More than 2,200 people were killed after the 7.1-magnitude earthquake struck Yushu. The entire town of Gyegu, the seat of Yushu prefectural government, was flattened, leaving more than 100,000 residents homeless.Lodroe Nyima Rinpoche, a living Buhhda of the Trangu Monastery, said monks felt "grateful" for the government efforts to rebuild damaged monasteries.Three best known monasteries damaged in the Yushu quake were Trangu, Gyegu and Renyak.The repair of Gyegu Monastery also started on Saturday.Qinghai's Ethnic Affairs Committee said the central government had earmarked 1 billion yuan for the monastery restoration in Yushu. The construction will cover an area of 170,000 square meters.Yushu is predominantly populated by ethnic Tibetans and most of them are Buddhists. There were thousands of monasteries, including 194 large or medium ones, in the region before the quake. The number of monks, nuns and other religious personnel was estimated at 23,000, local government data show.The economic losses of the monasteries and in-house religious relics mounted to 756 million yuan, according to the data.Monasteries and religious activities form an important part of local residents' daily life. Phuriwa, deputy head of Qinghai's Ethnic Affairs Committee, said the drafts for monastery restoration were revised many times only to best protect the Tibetan culture and to give local Buddhism believers best places to observe religious rituals.Saturday also marked the start of about 200 rebuilding projects in Yushu, which would cost 16 billion yuan.China plans to spend 31.7 billion yuan in three years to rebuild Yushu. Funding for the reconstruction will come mainly from the central budget, with contributions from provincial finances and donations, the government said earlier.

said CAS academician Cai Ruixian.China kicks off a biennial conference of the CAS and the Chinese Academy of Engineering (CAE) on Monday. The two institutions are China's two leading science and technology organizations which advise the government and industries on key scientific and technological issues.

BEIJING, Aug. 2 (Xinhua) -- China and Nepal celebrated the 55th anniversary of diplomatic ties at a reception in Beijing Monday evening.More than 300 guests, including Chinese government officials and foreign diplomats in China, attended the reception, which was co-hosted by the China-Nepal Friendship Association, the Chinese People's Association for Friendship with Foreign Countries (CPAFFC), and Nepalese embassy in China.Chen Haosu, president of the CPAFFC, said in a speech that the years since China and Nepal forged diplomatic ties had witnessed continuous development of their traditional friendship and friendly cooperation as well as frequent high-level exchanges.Political, economic, trade and cultural relations were closer than ever, Chen said.Guests attend a reception co-hosted by the China-Nepal Friendship Association, the Chinese People's Association for Friendship with Foreign Countries (CPAFFC), and Nepalese embassy in China in Beijing, Aug. 2, 2010. China and Nepal celebrated the 55th anniversary of diplomatic ties at the reception in Beijing Monday evening.The two nations, which treated each other on an equal footing, had harmonious coexistence and long-term friendship.Nepalese Ambassador to China Tanka Prasad Karki said that Nepal and China, as good neighbors, all-weather and reliable friends, as well as partners of common development, had maintained sound bilateral ties.Nepal wanted to further learn from China's experience in social and economic growth and enhance its mutually beneficial cooperation with China.China and Nepal forged diplomatic ties in 1955. They established a comprehensive partnership of cooperation at the end of 2009.

WUHAN/XI'AN, July 23 (Xinhua) -- Authorities in two Chinese provinces traversed by the Hanjiang River, the largest branch of the swollen Yangtze River, issued fresh flood warnings Friday.The Flood Control and Drought Relief Headquarters in central Hubei Province said areas along the Hanjiang River will face severe floods.Pressure is building at the Danjiangkou reservoir, which is already dealing with the worst flooding of the year so far.The water level in the reservoir had risen to 150.74 meters by Friday, about 1.74 meters above the warning line, and is expected to rise to 152 meters before the end of the month.Engineers at the reservoir more than doubled the flow rate of water from 1,920 cubic-meters per second to 5,000 cubic-meters per second.Along the upper reaches of the Hanjiang River in Shaanxi Province, floods and landslides had left at least 73 people dead and 121 missing as of Friday noon, the provincial government said.About 213,000 residents from 24 counties and districts in the cities of Hanzhong, Ankang and Shangluo in southern Shaanxi have been evacuated. More than 60,000 houses have been destroyed or damaged.A new round of rainstorms began to pound the region Thursday. Between 20 to 80 millimeters of rain has fallen, raising water levels in the Hanjiang River.Authorities in Shaanxi have ordered disaster relief agencies and government departments evacuate flood-threatened residents as soon as possible.Floods in China this year had left 742 people dead and 367 missing as of 9:00 a.m. Friday.