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RIYADH, Feb. 10 (Xinhua) -- Chinese President Hu Jintao met Saudi Arabian King Abdullah bin Abdul-Aziz here Tuesday on deepening the two countries' friendship and cooperation.     Hu arrived here earlier in the day at the start of his "journey of friendship and cooperation" to Saudi Arabia and four African countries.     In a written statement issued upon his arrival, Hu said he would exchange views with the king on China-Saudi Arabia ties and global and regional issues of common concern, including ways of addressing the international financial crisis.     Since China and Saudi Arabia established diplomatic ties in 1990, bilateral relations have developed steadily, with increasing exchange of visits at different levels and expanding cooperation in various sectors. Visiting Chinese President Hu Jintao (L front) and Saudi Arabian King Abdullah bin Abdul-Aziz (R front) walk into the venue of their meeting in Riyadh, Saudi Arabia, Feb. 10, 2009. Saudi Arabia is now China's largest trading partner in West Asia and North Africa. In 2008, two-way trade between China and Saudi Arabia amounted to 41.8 billion U.S. dollars.     During the visit, President Hu will also meet Abdul Rahman Al-Attiya, secretary general of the Cooperation Council for the Arab States of the Gulf (GCC), to discuss cooperation between China and GCC member countries.     From Riyadh, Hu will travel on to Mali, Senegal, Tanzania and Mauritius.     Chinese Foreign Ministry spokeswoman Jiang Yu told reporters last week that Hu's visit was aimed at further strengthening China's friendship and cooperation with these countries.     "It is believed that the visit will promote the in-depth development of China-Saudi Arabia strategic friendly relations and China-Africa new strategic partnership and further consolidate the China-Africa traditional friendship," said Jiang. 

BEIJING, Feb. 23 (Xinhua) -- China's central bank on Monday warned of deflation in the near term caused by continuing downward pressure on prices.     Commodities prices were low and weak external demand could exacerbate domestic over-capacity, the People's Bank of China (PBOC) said in an assessment of fourth-quarter monetary policy.     "Against the backdrop of shrinking general demand, the power to push up prices is weak and that to drive down prices is strong," the PBOC said. "There exists a big risk of deflation."     China's consumer price index (CPI), a major gauge of inflation, rose 1 percent in January from a year earlier. In that period, the producer price index (PPI), a measure of inflation at the wholesale level, dropped 3.3 percent.     But the PBOC also warned of medium and long-term inflation risks.     As the central banks worldwide injected a huge amount of liquidity into the financial system, commodities prices could repeat earlier rallies if market confidence recovered, it said.     The PBOC stated that China's economy faced further downside risks because of slackening external demand, over-capacity in some sectors and increases in urban job losses.     The gross domestic product expanded at a slower rate of 6.8 percent in the fourth quarter of 2008, as exports slumped and the property sector sagged, dragging down growth for the whole of 2008to a seven-year low of 9 percent     But China had huge market potential and as the macro controls started to take effect, its economy was likely to maintain stable and relatively fast growth, it said.     To spur growth, the PBOC said it would ensure ample liquidity in the banking system and promote the reasonable and stable growth of credit.     It also reaffirmed that China would keep the Renminbi (RMB) exchange rate basically stable, while making it more flexible in a self-initiated, gradual and controllable manner.

VALLETTA, Feb. 22 (Xinhua) -- Chinese Vice President Xi Jinping concluded his six-nation tour here Sunday and left for home. Xi arrived in Valletta on Saturday for a two-day official visit to Malta. During his visit, Xi met with Acting Maltese President George Hyzler, Speaker of House of Representatives Louis Galea and held talks with Prime Minister Lawrence Gonzi.     During the meeting with Hyzler, Xi said that Sino-Maltese relations have been developing very well in recent years, with a frequent exchange of high-level visits, enhanced mutually beneficial cooperation, and active exchanges in such fields as culture, education and judicature. Chinese Vice President Xi Jinping (R, front) inspects the honor guards at a welcoming ceremony held by Maltese Prime Minister Lawrence Gonzi (L, front) in Valletta, capital of Malta, Feb. 22, 2009.     China and Malta understand and support each other in major international and regional affairs, he said, adding that the two nations are "old friends and good friends" that have stood the test of time.     For his part, Hyzler thanked China for the sincere help it has provided for Malta, and congratulated China on the great achievements of its modernization drive. He also noted that there has been a good cooperative relationship between Malta and China. Chinese Vice President Xi Jinping (L3, rear) and Maltese Prime Minister Lawrence Gonzi (L4, rear) attend a signing ceremony for a series of agreements between China and Malta, in Valletta, capital of Malta, Feb. 22, 2009While meeting with Galea, Xi said that parliamentary exchange is an important part of Sino-Maltese relations, and that strengthening exchange and cooperation between the two sides is of great significance for the development of bilateral ties and friendship between the two peoples.     Both Hyzler and Galea reaffirmed that the Maltese government and parliament will firmly stick to the one-China policy.     During talks with Prime Minister Gonzi on Sunday morning, Xi said China hopes to consolidate Sino-Maltese cooperation in bid to obtain new and fruitful results through actions to deal with the challenges stemmed from the financial crisis.     Together with Gonzi, Xi attended the signing ceremony for a number of agreements on bilateral cooperation in economy, culture and judicature.     On Saturday, the Chinese vice president also met with former President Guido de Marco and Labor Party leader Joseph Muscat.     Malta was the final leg of Xi's six-nation tour, which also took him to Mexico, Jamaica, Colombia, Venezuela and Brazil.

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.

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.