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BEIJING, Jan. 14 (Xinhua) -- China's State Council unveiled a long-awaited support package for the auto and steel sectors Wednesday to boost the two "pillar industries".     Under the plan, the government will lower the purchase tax on cars under 1.6 liters from 10 percent to 5 percent from Jan. 20 to Dec. 31 in a bid to stimulate sales.     It will also allocate 5 billion yuan (730 million U.S. dollars) to provide one-off allowances to farmers to upgrade their three-wheeled vehicles and low-speed trucks to mini-trucks or purchase new mini-vans under 1.3 liters from March 1 to Dec. 31. It will also increase subsidies for people to scrap their old cars and will straighten out and cancel regulations that restrict car purchase.     The plan encourages large auto companies, as well as major auto-part makers to expand through mergers and acquisitions so as to optimize resources and improve their competitiveness on the international market.     In the next three years, the central government will earmark 10 billion yuan as a special fund to support auto companies to upgrade technologies, and develop new engines that use alternative energies. The government will offer financial support to promoting the use of energy-saving autos and those fueled by new energies, and support automakers to develop independent brands and build auto and parts export bases.     The plan also urges improvements in the credit system for car purchase loans. More than 93 percent of Chinese vehicles are sold in the domestic market, but less than 10 percent are purchased on credit.     It also requires accelerated upgrading of the steel sector, transforming "big" industry competitors into "strong" international players.     It said the industry needed to eliminate outdated technology, and must not establish new projects that merely add to steel output.     China also needed to increase domestic demand for steel and adopt a more flexible tax rebate policy to keep international markets.     Special funds will be allocated from the central budget to promote technological advancement of the sector, readjustment of products mix and improvements of product quality, according to the plan.

Chinese Vice Premier Wang Qishan (front R) shakes hands with U.S. Treasury Secretary Henry Paulson at a signing ceremony on energy and environmental protection cooperation during the fifth China-U.S. Strategic Economic Dialogue in Beijing, China, Dec. 4, 2008.    BEIJING, Dec. 4 (Xinhua) -- A senior Chinese official said here on Thursday that China and the United States have reached consensus in five major areas to step up energy and environmental protection cooperation during the on-going fifth round of the Strategic Economic Dialogue (SED).     Zhang Xiaoqiang, vice minister in charge of the National Development and Reform Commission (NDRC), said the five areas are as follows.     First, the SED completed preparations to start cooperation in five areas: electricity, clean water, clean transportation, clean air and the conservation of forest and wetland ecosystems, mapping out plans and roadmaps.     China and the United States signed a 10-year energy and environmental protection cooperation framework in June during the fourth SED held in Washington, with these five areas as initial goals. Chinese Vice Premier Wang Qishan (front R) and U.S. Treasury Secretary Henry Paulson attend the signing ceremony on energy and environmental protection cooperation during the fifth China-U.S. Strategic Economic Dialogue in Beijing, China, Dec. 4, 2008.    Second, both sides agreed that energy efficiency would be the sixth initial goal.     Third, the SED achieved agreement on a framework document for the green partnership project under the 10-year cooperation framework. It will be formally signed by Chinese Vice Premier Wang Qishan and U.S. Treasury Secretary Henry Paulson.     Fourth, institutions including China's NDRC and the China Exim Bank, as well as the U.S. Trade and Development Agency and the Export-Import Bank of the United States, will sign a memorandum of understanding on measures to support the 10-year energy cooperation.     Fifth, seven eco-partnerships from the two countries will sign letters of intent on cooperation. These agreements include one involving China's southwestern Chongqing Municipality, the U.S. city of Denver and car maker Ford on an electric and hybrid automobile project.     The two-day SED, which is to end on Friday, also covers macro-economic risks, trade challenges and the investment environment.

BEIJING, Jan. 26 (Xinhua) -- Finance Minister Xie Xuren said Monday there would be growing difficulty balancing China's budget this year, and he urged officials to avoid unnecessary spending.     In a Lunar New Year greeting on the ministry's homepage, Xie said that the external and internal conditions affecting China's social and economic development in 2009 were "very severe" and more difficulties had to be overcome to achieve "steady and relatively fast" economic growth.     Xie said government funds should be used efficiently as the government carried out an active fiscal policy to support public investment while cutting taxes.     To stimulate the economy, the government has raised export tax rebates three times since July, increased farm subsidies and endedthe value-added tax for equipment purchases -- a move that's expected to reduce companies' tax bills by 120 billion yuan (about 17.4 billion U.S. dollars) a year.     Moreover, the threshold for individual income tax, which now stands at 2,000 yuan per month, is likely to rise.     Although 2008 fiscal revenue grew an estimated 19 percent from 2007 to some 6 trillion yuan, the economic slowdown, falling corporate profits and tax cuts drove down fiscal revenue in the second half of last year.     Last year, the economy grew 9 percent year-on-year, ending a five-year period of double-digit growth.     Xie said earlier this month that the fiscal decline might continue this year. The Finance Ministry has imposed tighter controls on the general administrative expenditure of local governments.     For example, local governments have been ordered to limit the year's spending on car purchases, meetings, catering and overseas travel to no more than the amounts spent last year.     Jiangxi Province has urged officials to avoid unnecessary travel and vowed to cut meeting outlays by 20 percent from the 2008 level, catering expenses by 10 percent, and international business travel costs by 10 percent.     Many local governments, meanwhile, said they would step up investment spending in 2008. Shaanxi Province, for example, said it planned to invest 40 billion yuan in education, job re-training, public sanitation and social security, up 21 percent from last year, while Henan Province will invest 40 billion yuan to raise living standards.     These and other local governments announced investment plans after the central government put together a 4-trillion-yuan stimulus package in response to ebbing growth.

HANGZHOU, Nov. 16 (Xinhua) -- Rescuers have confirmed four people were killed and 17 others missing following Saturday's collapse at a subway construction site in east China's Zhejiang Province.     Search is continuing for the 17 trapped in the provincial capital Hangzhou, said the rescue headquarters chief Wang Guangrong. Rescuers work at the collapsed road where a subway tunnel was under construction in Hangzhou, capital of east China's Zhejiang Province, Nov. 15, 2008. Rescuers had updated the number of the missing workers from the previous 18 to 17 after they recovered another body at about 10 p.m. on Sunday, which brought the death toll from three to four.     The accident happened at 3:20 p.m. on Saturday when a 75-meter-long section of the subway tunnel under construction collapsed at the Fengqing Avenue in Xiaoshan District, trapping at least 50 workers and creating a huge crater where 11 vehicles were trapped.     Most of the trapped workers were taken out safely and 26 injured workers were hospitalized. Nine of the injured had been discharged from hospital and the other 15 are still receiving treatment.     More than 1,000 policemen and fire fighters participated in the rescue work. They are pumping water from the tunnel as water from a nearby river flowed into the tunnel soon after the cave-in. Rescuers work at the collapsed road where a subway tunnel was under construction in Hangzhou, capital of east China's Zhejiang Province, Nov. 15, 2008. "There is a slim chance for the trapped workers to survive because of heavy flooding in the crater," said Wang, adding that the water level once reached six meters at its highest.     The construction undertaker, China Railway Construction Group Co., Ltd., has halted all the subway construction works in the city for safety checks, said the group's vice president Bai Zhongren.     The provincial work safety bureau and construction bureau have set up an investigation group to find out cause of the accident.     And a panel, composed of experts from Beijing Jiaotong University, Beijing Urban Engineering Design and Research Institute Co., Ltd. and Zhejiang University, is working on the rescue operation scheme.     Under the expert panel's advise, authorities have evacuated three households living near the cave-in site. Their houses will be dismantled to make way for the mechanical operation in rescue and repair work, Bai said.     The families of the dead and the trapped workers are heading to the rescue site.

BEIJING, Nov. 28 (Xinhua) -- The Political Bureau of the Communist Party of China (CPC) Central Committee convened a meeting here on Friday, analyzing and studying the economic work of next year and setting out major tasks.     The meeting said that this year has been eventful and the country has risen to many daunting challenges, including the global financial crisis and domestic natural disasters. The economy has maintained a stable and relatively fast growth and society has been stable, which are hard-won achievements, it said.     The meeting, chaired by CPC Central Committee General Secretary Hu Jintao, warned that the worsening global financial crisis would have more impact on China's economic development, urging the country to take more precautionary measures to meet the challenges.     The meeting said that next year, which marks the 60th anniversary of the founding of New China, the nation should boost domestic demand for a stable and relatively fast economic growth, accelerate the transformation of development patterns and structure adjustment for sustainable development, deepen the reform and opening-up drive and solve problems that concern the people's interests for a healthy and rapid economic and social development.     Maintaining a stable and relatively fast economic development should be the foremost task for next year's economic work, it said, urging a better combination of ensuring growth, boosting domestic demand and adjusting structure.     An "active" fiscal policy and "moderately loose" monetary policy should be continued, and measures including tax reduction and increasing central government investment should be taken to safeguard the people's livelihood, stimulate domestic demand and transform development patterns, it said.     Consumption, rural consumption in particular, should be actively boosted and a set of major projects on livelihood, infrastructure and environment protection should be launched.     The position of agriculture as the foundation of the economy should be strengthened and agriculture production be boosted, it said.     The stable growth of foreign trade should also be maintained.     Structural adjustment should be accelerated, including developing the high-tech industry, small and medium-sized enterprises, the service sector and coordinating regional development.     More progress should be made on energy saving and emissions reduction and pollution treatment be stepped up, the meeting urged.     Rural reform and financial reform should be deepened, and people's livelihood should be improved and more jobs be created, it said.     The meeting also agreed in principle suggestions on judicial reform by the CPC Central Political and Legal Affairs Commission.     The reform should meet the judiciary needs of the people and aim at promoting social harmony, beef up measures to tighten the restraint on and supervision over the use of power, and remove barriers that hamper justice, it said.