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BEIJING, Aug. 11 (Xinhua) -- China's key July economic data adds to the optimism that the world's third largest economy is back on the track to recovery amid the global downturn, though challenges still persist. The July decline compared MORE POSITIVE CHANGES Both investment and consumption, two major engines that drive up China's growth, increased, according to statistics the National Bureau of Statistics (NBS) released Tuesday. Urban fixed-asset investment rose 32.9 percent year on year in the first seven months. Retail sales, the main measure of consumer spending, rose 15.2 percent in July, following a 15 percent growth in June. Graphics shows China's consumer price index from January of 2008 to January of 2009. The CPI was down 1.8 percent in July compared with the same month a year earlier, according to National Bureau of Statistics of China on Aug. 11, 2009Further signs of rebound in private spending supported a sustained growth recovery, Peng Wensheng, analyst at the Barclays Capital, said in an e-mailed statement to Xinhua. Although exports, another bedrock that fueled China's fast growth in the past few years, fell on a year-on-year basis last month, there were signs of improvement. China's foreign trade figures were better than they looked on the surface. July exports fell 23 percent from a year earlier, but increased 10.4 percent from June. Imports declined 14.9 percent year on year last month, but rose 8.7 percent month on month. According to the General Administration of Customs, the country's foreign trade has risen since March measured from month to month, and the trend of recovery had stabilized. Improvements in these data indicated China's economy was recovering and the government's policies to boost domestic demand and stabilize foreign trade had paid off, said Zhang Yansheng, a researcher with the National Development and Reform Commission (NDRC), the country's economic planner. Among other statistics released Tuesday, industrial output climbed 10.8 percent in July from a year earlier, quickening from 10.7 percent in June and 8.9 percent in May. Power generation, an important indicator measuring industrial activities, expanded 4.8 percent in July. Peng expected the country's economic growth to rise above 8 percent in the third quarter this year and 10 percent in the fourth quarter. POLICY STANCE UNCHANGED Despite these positive changes in China's economy, uncertainties still existed in world economic development and some domestic companies and industries faced difficulties, said Song Li, deputy chief of the Academy of Macroeconomic Research under the NDRC. As a result, the macro-economic policy orientation should remain unchanged, Song said. China's economy grew only 7.1 percent in the first half this year. This compared with double-digit annual growth during the 2003-2007 period and also the first two quarters last year. The government set an annual target of 8 percent for this year's economic growth, which was said essential for expanding employment. China unveiled a four-trillion-yuan (584.8 billion U.S. dollars) stimulus package and adopted proactive fiscal policy and moderately loose monetary policy to expand domestic demand, hoping increases in investment and consumption would make up for losses from ailing exports. To stimulate economy, lenders pumped 7.73 trillion yuan of new loans into the economy in the first seven months, the People's Bank of China, the central bank, said Tuesday. The surge in credit, however, sparked concerns over possible inflation and speculation about a shift in the country's monetary policy. Economists dispelled such concerns, saying consumer prices were still falling and the growth in new bank loans eased in July. The consumer price index (CPI), a main gauge of inflation, dipped 1.8 percent in July from a year earlier. The producer price index (PPI), which measures inflation at the wholesale level, fell 8.2 percent year on year last month. New lending in July cooled to 355.9 billion yuan, less than a quarter of the June total of more than 1.5 trillion yuan. Premier Wen Jiabao reaffirmed during the weekend that China would unwaveringly adhere to its proactive fiscal and moderate monetary policies in face of economic difficulties and challenges, like ailing exports and industrial overcapacity. Wen's stance echoed Zhu Zhixin, vice minister in charge of the NDRC, who underscored on Friday that there would be no change in China's macro-economic policy as the overseas market was still severe. He warned that any change in the macro-economic policy would disturb the recovery or rebound momentum, or even perish the previous efforts and achievements. "Efforts to keep a stable and fast economic development is the top priority of the country in the second half," he said.
BEIJING, Sept. 29 (Xinhua) -- The Chinese people have made unremitting efforts in the past six decades for the modernization drive and achieved great success, top political advisor Jia Qinglin said Tuesday. Jia, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), addressed a reception for the 60th National Day, which falls on Thursday. Photo taken on Sept. 29, 2009 shows a reception for the 60th anniversary of the founding of the People's Republic of China, held by the General Office of the Chinese People's Political Consultative Conference (CPPCC) National Committee, the United Front Work Department of the Central Committee of the Communist Party of China (CPC), Taiwan Affairs Office of the State Council, Hong Kong And Macao Affairs Office of the State Council and Overseas Chinese Affairs Office of the State Council in Beijing, capital of China. Jia Qinglin, chairman of the National Committee of the CPPCC, Chinese Vice President Xi Jinping, and Chinese Vice Premier Li Keqiang attended the receptionThe reception was jointly held by the General Office of the CPPCC National Committee, the United Front Work Department of the Communist Party of China Central Committee, the Overseas Chinese Affairs Office of the State Council, the Hong Kong and Macao Affairs Office of the State Council, and the Taiwan Affairs Office of the State Council. Jia said the central government would continue to unswervingly support the development of Hong Kong and Macao special administrative regions. Photo taken on Sept. 29, 2009 shows a reception for the 60th anniversary of the founding of the People's Republic of China, held by the General Office of the Chinese People's Political Consultative Conference (CPPCC) National Committee, the United Front Work Department of the Central Committee of the Communist Party of China (CPC), Taiwan Affairs Office of the State Council, Hong Kong And Macao Affairs Office of the State Council and Overseas Chinese Affairs Office of the State Council in Beijing, capital of China. Jia Qinglin, chairman of the National Committee of the CPPCC, Chinese Vice President Xi Jinping, and Chinese Vice Premier Li Keqiang attended the reception.He said earnest efforts would be made to promote peace across the Taiwan Strait, seek welfare for Taiwan compatriots and achieve the revitalization of the Chinese nation. Vice President Xi Jinping and Vice Premier Li Keqiang, together with other senior officials and more than 4,000 people from home and abroad, attended the reception.

BEIJING, Aug. 5 -- Chinese steel mills would prefer to import more iron ore from Brazil rather than Australia after the detention of four Shanghai-based employees of multinational miner Rio Tinto on charges of commercial espionage, according to data specialist ASXMarine. Spot iron ore vessel bookings from Brazil to China surged to a record 39 in July, from 24 in the previous month, Reuters quoted the data from ASXMarine. Vessel bookings from Australia's main iron ore ports to China dropped to 31, down from 40 compared to the previous month and the lowest reading since February after the Rio Tinto scandal. Photo taken on July 9, 2009 shows the Rio Tinto Ltd. Office in Shanghai, east China. Chinese steelmakers have begun to hold their imports from Australian miners and are switching to Brazilian ore instead, domestic ports have witnessed. Zang Dongsheng, deputy general manger of Rizhao Port Group, China's largest iron ore port which accounts for a fifth of the country's iron ore deliveries, said some of his customers have reduced their orders from Australia and turned to Brazil. But the exact figures would be available only in September as shipments from Brazil and Australia would be delayed by one or two months. China's main ports received 56.5 million tons of iron ore in July, up 35 percent from the same period last year, the Ministry of Transport said yesterday. Iron ore imports rose 29.3 percent year on year, to 297 million tons, in the first half of this year, while traders imported 131 million tons, up 90.4 percent from last year. The China Iron and Steel Association (CISA) said last Friday that excess iron ore imports had distorted the demand-supply situation and hampered its position at negotiations with global miners on new long-term benchmark prices. It also said foreign iron ore suppliers promoted massive selling on the cash market, leading to huge stockpiles and urged to limit import licenses. However, the iron ore import figures in July reflected orders in May as it takes more than a month to deliver ore from Australia and Brazil, said Zang from Rizhao port. Chinese steel mills started to reduce orders ever since CISA rejected the 33-percent cut offered by miners in May and held out for more discount, he said. China News Service reported yesterday that CISA halted talks because iron ore spot prices have been "seriously distorted", citing a statement issued by the association. However, no such statement could be found on the association's website, and its official surnamed Wang said the report was not true and talks were ongoing.
DALIAN, Sept. 10 (Xinhua) -- Chinese Premier Wen Jiabao said on Thursday that the World Economic Forum (WEF) is helpful in gathering confidence for fighting global economic downturn. Wen made the remarks while meeting with WEF chairman Klaus Schwab on the sidelines of the the Annual Meeting of the New Champions 2009, also known as the Summer Davos. The three-day forum, held in northeastern China's port city Dalian, has attracted some 1,400 participants from 86 countries and regions to discuss topics about the theme of "Relaunching Growth". Chinese Premier Wen Jiabao (R) shakes hands with founder and executive chairman of World Economic Forum Klaus Schwab during their meeting in Dalian, northeast China's Liaoning Province, Sept. 10, 2009. Klaus Schwab is here to attend the Annual Meeting of the New Champions 2009, also known as the Summer Davos. The WEF has played a positive role in helping the international community reach consensus and jointly tackle global financial crisis, said Wen. Schwab said China actively deals with financial crisis and has facilitated the process of world economic recovery.
BEIJING, Sept. 25 (Xinhua) -- China held a grand reception hereon Friday to celebrate the 60th anniversary of diplomatic ties with Russia as well as the founding of the China-Russia Friendship Association. Addressing the occasion, China's top political advisor Jia Qinglin described China-Russia relations as in the best period of history, citing frequent high-level exchanges, unprecedented political trust and substantial cooperation in various areas. "The China-Russia relationship has become one of the most energetic and influential bilateral ties around the world, which not only brought benefit to the two peoples but also contributed to world peace and development," said Jia, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC). Qinglin, chairman of the National Committee of the Chinese People's Political Consultative Conference, addresses a reception to celebrate the 60th anniversary of the establishment of the diplomatic ties between China and Russia and of the founding of the China-Russia Friendship Association, in Beijing, capital of China, Sept. 25, 2009Chinese President Hu Jintao had fruitful talks with his Russian counterpart Dmitry Medvedev on Sept. 23 in New York, and both reached broad consensus on important topics including bilateral cooperation and other issues of common concern, he said. Jia called on the two countries to promote the bilateral strategic partnership of cooperation from a strategic height and overall perspective, stick to the principles of the Sino-Russian Good-Neighborly Treaty of Friendship and Cooperation, keep high-level contacts and exchanges among various levels, respect each other's core interests and enhance cooperation among local governments. Russian ambassador to China Sergei Razov echoed that currently Russia-China relations are in their best period in history. Hailing the epoch-making significance of setting up bilateral diplomatic ties, he said Russia-China relations were based on common interests and enhanced trust and support. "The increasing coordination between the two countries had made a great contribution to the formation of a new world situation," he added. Some 280 delegates from both countries attended the reception including President Chen Haosu of the Chinese People's Association for Friendship with Foreign Countries, and President Mikhail Titarenko of the Moscow-based Russia-China Friendship Association.
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