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BEIJING, Dec. 3 (Xinhua) -- China's central government on Friday declared new policies to encourage private funds, including overseas capital, to be channeled to the medical sector to meet the country's increasingly diversified demands on health care.The new policies, dubbed "guideline to encourage and lead social capital to sponsor health-care institutions" were posted on the central government's official website www.gov.cn.It clearly stipulated that social capital should enjoy preferential treatment when China is adjusting or increasing medical resources and social funds will be encouraged to participate in governmental restructuring of hospitals.Overseas investments are now welcomed to sponsor hospitals, while the procedures will be further simplified, according to the guideline.The general office of the State Council, or cabinet, required local governments to amend their documents accordingly and get rid of any policies that impede the development of non-governmental medical institutions.Also, the new policies encourage social funds to take part in governmental hospital reforms and convert some government-backed hospitals into non-governmental institutions to reduce the ratio of public hospitals, said an official with the medical and health care system reform office under the State Council.China will deepen the opening-up of medical institutions and turn the overseas-invested medical sector from the "limited (towards foreign investment)" category into a category that allows foreign investment, the official said.

BEIJING, Dec. 6 (Xinhua) -- A well-known economist said Monday that the biggest problem in China is not inflation, but shifting its economic structure to maintain sustainable growth."The biggest challenge faced by China is economic restructuring in order to shift the economy to a more balanced way that will provide sustainable economic growth," Stephen Roach, former chairman of Morgan Stanley Asia, told Xinhua."In the post-crisis environment, the shift means to build a consumer-led economy, and that is the overriding challenge in China," said Roach, who currently serves as non-executive chairman of Morgan Stanley Asia.Residents' incomes in China remain at a low level. "People's incomes are only 42 percent of the GDP, whereas in the US the rate is 86 percent. So the government should raise the income of the citizens, especially when China wants to stimulate domestic private consumption," said Roach."Of course, that does not mean the Chinese government should ignore the risk of higher inflation," he said.Official data showed that China's October Consumer Price Index (CPI), a major gauge of inflation, rose to a 25-month high at 4.4 percent."There is a certain amount of momentum to inflation, so it's likely to be the a problem over the next 12 months. If the government acts quickly, it will be able to limit the problem, or else China could be facing this problem in 2012 as well," said Roach.Roach suggested China should take broad and comprehensive approaches in dealing with inflation, and the medium-term goal of the shifted economic structure need to be maintained."The government has to demonstrate its resolve in dealing with inflation, and property market assets. It's a challenge, but I think the government is up to the challenge," according to Roach.

BEIJING, Dec. 26 (Xinhua) -- With the New Year and China's Spring Festival approaching, China will improve efforts to stabilize prices and ensure abundant supply of essential commodities, according to an official circular issued Sunday.Cracking down on price speculation and related market manipulation should be high on agenda of governments at all levels, according to the circular issued jointly by the General Offices of the Communist Party of China (CPC) Central Committee and the State Council, or China's Cabinet.The circular also urged for improved supervision on the food and medicine market and demanded work concerning water, power, oil, gas and heating supplies to be handled well.It called on related departments to distribute subsidies for low-income groups in a timely way and make arrangements to help people, especially those in disasters-hit areas, to get through the winter with enough supply of necessities.Party and governmental organs should abstain from extravagance and embezzlement of public fund must be strictly prohibited, it said, ordering discipline inspection authorities, auditing agencies and finance departments to enhance supervision.According to the circular, special inspection campaigns will be launched in sectors, including mining, transportation, construction, and fireworks manufacturing, to tighten safety measures and prevent accidents.Stressing security in passenger transportation, the circular said cargo overloading, using fatigued operators or running unlicensed transportation operations are prohibited.It further called for efforts to safeguard social order and to combat violent and mafia-style crimes, property embezzlement and economic crimes.

BEIJING, Jan. 12 (Xinhua) -- Chinese Vice President Xi Jinping on Wednesday urged the Hong Kong-based Chinese General Chamber of Commerce (CGCC) to increase support for the local government and further contribute to regional economic development."Hong Kong's current situation is good in general, but it also faces many challenges. As an important patriotic group, the CGCC should shoulder its responsibilities to ensure and boost the region's prosperity and stability," Xi said in Beijing while meeting a visiting CGCC delegation.Xi noted that the group had been making great contributions to Hong Kong and the mainland by actively participating in the region's social affairs and economic development.Xi said Hong Kong had overcome problems created by the global financial crisis, and was undergoing a strong economic revival.Xi also said that the central government had been taking effective measures to support the region's economic development and improve local people's livelihoods.The CGCC, founded in 1900, is one of the oldest and largest non-profit organizations of local Chinese firms and businessmen in Hong Kong. It has more than 6,000 members.The delegation was led by CGCC chairman Jonathan Choi Koon-shum.