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BEIJING, March 24 (Xinhua) -- China said it would raise benchmark retail prices of gasoline and diesel by 290 yuan (42.46 U.S. dollars) per tonne and 180 yuan per tonne, respectively, as of midnight Tuesday. It is the second oil price adjustment this year. The National Development and Reform Commission (NDRC), China's top economic planner, cut benchmark pump prices of gasoline and diesel by 140 yuan and 160 yuan per tonne, or 2 percent and 3.2 percent, respectively, on Jan. 14. Experts said more frequent price adjustments show China can respond more quickly to international oil price changes after a new pricing mechanism took effect Jan. 1, 2009. The combined photo taken on Mar. 24, 2009 shows the price boards before (top) and after (bottom) the adjustment, in Beijing, China. China said it would raise benchmark retail prices of gasoline and diesel by 290 yuan (42.46 U.S. dollars) per tonne and 180 yuan per tonne, respectively, as of midnight Tuesday. Oil price fell to 53.10 U.S. dollars a barrel in electronic trading on the New York Mercantile Exchange on Tuesday. On the previous trading day, it settled at 53.80 U.S. dollars a barrel, the highest price since Dec. 1. Under the new mechanism, China's domestic prices are to be "indirectly linked" to global crude prices "in a controlled manner." "The 'indirect link' would be based upon average global crude prices, while taking into account domestic production costs, taxation, and 'appropriate profits' of oil producers," deputy director of the pricing department of the NDRC, Xu Kuning, said. Government-set fuel prices were previously changed infrequently. As a result, either Chinese drivers ended up paying more than those in other countries when crude prices dropped, or domestic refineries suffered huge losses when crude prices surged. Last Dec. 18, when the international crude price dropped from a record 147 U.S. dollars a barrel to less than 40 U.S. dollars, the NDRC announced a move to cut pump prices by 900 yuan and 1,100 yuan per tonne for gasoline and diesel, respectively. The new pricing mechanism was announced the following day and took effect at the beginning of this year. In Tuesday's notice to raise pump prices, the NDRC urged the two state-owned oil producers, PetroChina and Sinopec, to increase oil production to meet demands. It also urged local pricing regulators to strengthen supervision over oil prices and crack down on any price violations. China's crude oil output reached 190 million tonnes in 2008, up2.3 percent year-on-year, the highest growth in three years, according to the China Petroleum and Chemical Association. Imports of crude oil rose 9.6 percent year-on-year to 179 million tonnes last year, which accounted for 48 percent of total crude oil demand.

LONDON, April 3 (Xinhua) -- Chinese President Hu Jintao made concrete proposals on tackling the global financial crisis at the G20 London summit, playing an important and constructive role for the summit to gain pragmatic results, the Chinese foreign minister said on Friday. "The summit produced measures of high value in fighting the financial crisis and built up confidence for the world to tide over the crisis and renew economic growth," Yang Jiechi said, adding that Hu's proposals contributed to the result. Chinese President Hu Jintao attends the Group of 20 summit in London, Britain, April 2, 2009. The international community held high expectations, especially on influential emerging economies such as China, and President Hu's attendance caught much attention, Yang said. At the summit, Hu called for international cooperation, actively participated in various discussions, comprehensively introduced China's effective measures in dealing with the financial crisis, Yang said. According to Yang, the Chinese president's trip was proved to a success mainly in five aspects. Chinese President Hu Jintao (R) meets with British Prime Minister Gordon Brown in London, Britain, on April 1, 2009. Firstly, Hu expounded China's opinions on the global financial crisis and called for coordination and support between each other to "join hands and tide over the difficulties together." Hu reiterated the Chinese government's willingness to strengthen macroeconomic policy coordination with the international community, push the reform of the international financial system forward, actively safeguard the stability of the multilateral trade mechanism and contribute to the restoration of the world's economic development. Secondly, Hu put forward proposals on reforming the international financial system, saying efforts should be made to strengthen cooperation in financial regulations, formulate as soon as possible widely accepted standards and norms of the regulations, Yang said. Chinese President Hu Jintao (2nd R) talks with British Prime Minister Gorden Brown (R) as they prepare to pose for a family photo during the Group of 20 summit in London, Britain, April 2, 2009International financial institutions should offer more aid to developing countries and the Financial Stability Forum should playa bigger role, the Chinese president said. The International Monetary Fund (IMF) should strengthen and improve its supervision over the macroeconomic policies of various economies, major reserve currency issuing economies in particular, with a special focus on their currency issuing policies. Measures should be taken to improve the governance structures of the IMF and the World Bank and give more say to developing countries. Thirdly, Hu introduced to world leaders China's anti-crisis measures and preliminary achievements gained in tackling the economic downturn. Fourthly, China voiced strong opposition to protectionism and concerns over development issues, Yang said. Hu pointed out that protectionism had produced grave consequences, lessons of history must be learnt, and no country should resort to protectionism under the excuse of stimulating the economy. Yang said the crisis has taken its toll particularly on the developing nations and the UN Millennium Goals have also suffered as a result. China, as the world's biggest developing nation, has spared no efforts in defending the interests of developing nations, the minister said. Fifthly, Hu's visit promotes bilateral relations with some countries, Yang said. Chinese President Hu Jintao (L) shakes hands with U.S. President Barack Obama during their meeting in London, Britain, on April 1, 2009In London, Hu held talks with his U.S. counterpart Barack Obama in the first meeting between the two heads of state since the new U.S. administration took office in January, agreeing to build a positive, cooperative and comprehensive relationship in the 21st century and establish a new "China-U.S. Strategic and Economic Dialogue" mechanism. The meeting ushered in a new era which features healthy and stable development of China-U.S. relations, Yang said. In a meeting between Hu and his Russian counterpart Dmitry Medvedev, the two leaders agreed to push forward bilateral ties, jointly tackle the global financial crisis and strengthen coordination in dealing with international affairs. Chinese President Hu Jintao (L) meets with Russian President Dmitry Medvedev in London, Britain, April 1, 2009When meeting with British Prime Minister Gordon Brown, Hu reached broad consensus with him on tackling the international financial crisis, promoting the reform of the world financial system and enhancing bilateral relations. Hu also met with his French counterpart Nicolas Sarkozy, Japanese Prime Minister Taro Aso, Brazilian President Luiz Inacio Lula da Silva, Australian Prime Minister Kevin Rudd, and South Korean President Lee Myung-bak. Despite a tight schedule, Hu tried to seize every opportunity to explain China's positions and views on various issues and achieved good results, Yang said. Chinese President Hu Jintao (R) shakes hands with French President Nicolas Sarkozy during their meeting in London, Britain, on April 1, 2009G20 groups the world's major economies and serves as a key and effective platform for tackling the current global economic and financial challenges, Yang said. China is ready to work with other G20 members to implement the consensus reached at the London summit and make greater contributions to overcoming the financial crisis, renewing global economic growth and advancing international financial reforms, the minister concluded.
WUXI, Jiangsu, March 28 (Xinhua) -- China's top political advisor has urged the country to press forward the government's stimulus plans and spare no efforts to achieve the 2009 economic and social development targets. All sides in China should combine their strength to boost growth, guarantee people's well being and maintain social stability amid the downturn, said Jia Qinglin, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), during a research tour to Wuxi city of eastern China's Jiangsu Province over the weekend. China aims at an annual economic growth of about 8 percent this year after the global financial crisis slowed the 2008 growth to a seven-year low of 9 percent. Jia Qinglin (C front), member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee and chairman of the National Committee of the Chinese People's Political Consultative Conference, investigates Hynix-Numonyx Semiconductor Ltd. in Wuxi, east China's Jiangsu Province, March 28, 2009. Jia Qinglin, together with Chinese Vice Premier Hui Liangyu, who is also a member of the Political Bureau of CPC Central Committee, made an investigation tour in Wuxi from March 27 through 28 Jia reaffirmed that the fundamentals of China's economy and its long-term upward direction has not changed, though 2009 will be "the most difficult year" for the country's economy since the beginning of the 21st century. He told local authorities and entrepreneurs to vigorously develop advanced manufacturing, modern service sector and high-tech industries. Measures should be taken to speed up industrial upgrading, explore international markets and introduce more overseas high-level talents, said Jia. He underscored the urgency of creating more jobs and improving social welfare. He also called for more government investment to rural areas to support agriculture and raise farmers' income. Jia Qinglin (2nd L, front), member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee and chairman of the National Committee of the Chinese People's Political Consultative Conference, investigates the Yangshan peach orchard in Wuxi, east China's Jiangsu Province, March 28, 2009
BEIJING, April 11 (Xinhua) -- Credit extended by China's banks in the first quarter hit 4.58 trillion yuan (670 billion U.S. dollars), the People's Bank of China (PBOC) said Saturday. In March alone, new yuan-denominated loans increased 1.89 trillion yuan. It was the third straight month that new loans exceeded 1 trillion yuan. "It is not beyond market expectations. The increase was boosted by the 4-trillion-yuan stimulus plan and showed the possibility of a faster economic recovery in China compared with other countries," said Zhang Qizuo, vice director of China International Economy Society. Premier Wen Jiabao said on March 5 at the opening of the annual session of the National People's Congress, China's legislature, that new yuan-denominated loans this year were expected to reach 5 trillion yuan. Historical data show the first-quarter bank credit usually accounts for more than 60 percent of the year's total. "There is a time lag between the credit increase and actual use of capital, but the big increase will surely lay a solid foundation for the recovery of the real economy," said Zhang. In the first quarter, the central bank withdrew 47.3 billion yuan from circulation, 78.5 billion yuan more than the same period of last year. "The increase in currency withdrawal from circulation showed the central bank was carefully watching the credit growth," said Yuan Gangming, an economist with Tsinghua University. Zhuang Jian, an economist at the Asian Development Bank, said the regulators should pay attention to the quality of new loans and prevent bad loans. By the end of February, non-performing loans by Chinese banks totaled 1.53 trillion yuan, 17.5 billion yuan less than the start of the year. The structure of credit growth was also improving. The proportion of bill financing fell to about 22 percent in March from 47 percent in February, though still much higher than the average of 5 percent. "The decline in bill financing is a good sign. It means company activities are increasing and the credit's impact on the economy is strengthening," said Zhuang. Through March, the M2 figure -- a broad measure of money supply,which covers cash in circulation and all deposits -- grew 25.5 percent from a year earlier to 53.06 trillion yuan. The narrow measure of money supply, M1 (cash in circulation pluscorporate current deposits), was up 17.04 percent year on year to 17.65 trillion yuan. "The fast rebound of M2 indicates China's liquidity is abundant. This is very important to the economic recovery. The sharp rise of M1 shows companies are increasing spending on investment and management." said Zhang Bin, an economist with Chinese Academy of Social Sciences.
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