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GUANGZHOU, April 18 (Xinhua) -- Exhibitors at China's largest trade fair may have one more question to ask when their paper-thin profits are further squeezed by a fast-rising yuan.     "Are you willing to pay by euro?" Lu Jia, a sales manager from a local leather manufacturer at the Canton fair, ventured the final but most crucial question to her Turkish client after introducing her products.     "Honestly, starting clearing of euro transactions rather than the U.S. dollar is not easy for my company, but it is still worth a try given a faster yuan rise this year," the 23 year-old Lu said at the trade-promotion event in Guangzhou, capital of the southern Guangdong Province.     The Chinese currency, the yuan, breached the 7-yuan mark for the first time on April 10, gaining 4.47 percent this year and 18.27 percent since the government unpegged it from the dollar in 2005.     "The yuan appreciation far outpaced our business growth. Its weekly increases were even beyond our anticipation," said Cao Xiaojian, the Jiangsu Shuntian Co., Ltd vice chairman.     Like most other Chinese exporters, Cao earns dollar-denominated profits, which are on the decline as the dollar becomes cheaper. He said that a 1 percent rise in the yuan would result in a sales profit decrease of 2 percent to 6 percent and things were even worse for the garment industry.     "Profit margins for home electrical appliances are between 3 percent and 5 percent and the rising exchange rate has eaten them away," said Zhang Yujing, China Chamber of Commerce for Import and Export of Machinery and Electronic Products vice chairman.     Most exhibitors at the fair had to raise their offers due to higher costs in raw materials, energy and transport. Yet, they were afraid too high prices might scare away orders faced with sagging demand due to a global slowdown.     "A small rise in offers is acceptable," said Khaldoun Kalbouneh, general manager of the Furniture World, a trading company headquartered in Palestine. "But if the prices are too high, I may consider other markets."     Zhang said export-oriented sectors should improve their product mix, add more value and use financial tools to evade risks by the yuan rise.     As China's largest listed textile manufacturer, the Jiangsu Shuntian has pulled investment from textile into other industries like chemical, finance and securities, mines and high-tech, among others.     But many other companies prefer price increases. Chinese leading home appliance maker Qingdao Haier said it would re-set its prices with overseas sellers once the yuan gained more than 3 percent. The new price would be determined by the specific foreign exchange rate.     Feng Bin, Suzhou Chunlan Air Conditioner Co., Ltd general manager, said he hoped to transact via the euro. "The offer will expire in three months if the client sticks to the dollar. The exchange rate changes too quickly."     Experts say the change of currency clearing system is still not feasible for most exporters as it involves adjustment of export markets and bargain with foreign buyers. Besides, such services in domestic banks are too complicated, they say.     Therefore, some companies are considering financial derivatives as a way out. Shen Zhiming, Zhejiang Cathaya International Co., Ltd manager, said his company had bought currency futures for two years. "It is a real learning process for Chinese enterprises, a process for internationalization."     The China Import and Export Fair has two phases, from April 15 to 20 and April 25 to 30. The first phase features textiles, garments, health products, household appliances, tools, small vehicles and hardware.     Food, tea, kitchenware, decorations, toys, sporting goods and office supplies highlights the second phase.

BEIJING, Sept. 4 (Xinhua) -- China's State Council, or the Cabinet, has ordered government agencies to take immediate actions to rectify the financial abuses exposed by the National Audit Office (NAO) in late August.     All units that misused funds were required to report their rectification results to the State Council before Oct. 31, according to an executive meeting of the Cabinet Thursday, which was presided over by Premier Wen Jiabao.     The NAO found 29.38 billion yuan (4.32 billion U.S. dollars) worth of "problematic" expenditures after auditing the 2007 state budget spending of 53 ministerial-level departments and 368 of their affiliates.     It also found 258 million yuan of disaster relief funds were embezzled and used for administrative expenses or government construction projects.     The meeting decided that more central agencies shall make public their budgets. Eleven of them did this last year.     The Cabinet also reviewed a draft ordinance complementary for the enforcement of the Labor Contract Law, and decided that further revision has to be done before it could be enacted.     The Labor Contract Law took effect on Jan. 1 and has raised concern in China's corporate world because of its enhanced protection of laborers' rights.

BEIJING, Aug. 15 (Xinhua) -- China's securities supervisor said on Friday that the heavy slump on the country's equities market was caused by a combination of factors, both domestic and foreign.     These included a need for internal correction, increasing uncertainties on the global markets and frequent natural disasters, China Securities Regulatory Commission (CSRC) spokesman said at a press conference.     The unsound mechanism and structure of the country's equities market worsened the situation and widened the range of the correction, he said.     The benchmark Shanghai Composite Index edged up 0.56 percent to 2,450.61 points on Friday, closing out the week slightly higher after five days of losses. The key index has tumbled nearly 60 percent from its peak in October.     However, the trend of a steady and healthy performance would remain unchanged, he said, as the country's economy maintained steady and fast growth.     CSRC would study the emerging problems, promote the improvement of basic systems and optimize the structure of fund raising, he said.     CSRC would also adjust new share supply in line with market demand, enhancing the market mechanism in regulation.     The commission has slowed new share issues this year in an effort to brake the steep index declines as any mention of new share offering would cause a sharp plunge in the index.     From January to July, CSRC only approved the new offering (at least 100 million shares) of four companies, which raised a combined 64.32 billion yuan (9.38 billion U.S. dollars). Both the frequency and amount decreased, by 64 percent and 49 percent respectively, compared with the same 2007 period.     The commission would join with the State-owned Assets Supervision and Administration Commission to set up a real-time monitoring system to supervise transfer of the state-owned shares.

BEIJING, Oct. 11 (Xinhua) -- The latest tests found that Chinese liquid dairy products met the new temporary restrictions on melamine, the country's top quality control agency said on Saturday.     It was the ninth investigation on the industrial chemical following the tainted baby formula scandal that killed at least three infants and sickened more than 50,000 others, according to the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).     The latest tests covered 532 batches of liquid milk, including yogurt, from 69 brands in 23 major cities nationwide, the agency said.     At present, 4,213 batches of liquid dairy products from 131 brands produced after Sept. 14 were tested and all in line with the limit, it added.     Melamine, often used in the manufacturing of plastics, was added to sub-standard or diluted milk to make the protein levels appear higher.     China on Wednesday set temporary limits on melamine content in dairy products. The limits were a maximum of 1 mg of melamine per kg of infant formula and a maximum 2.5 mg per kg for liquid milk, milk powder and food products containing at least 15 percent milk.     The State Council, or Cabinet, issued a series of quality control regulations for dairy products on Thursday.     The regulations tighten control of how milk-yielding animals are bred, how raw milk is purchased and the production and sales of dairy food.     They promised more severe punishment for people who violated safety standards and quality control departments that failed to fulfil their duties.

BEIJING, April 9 (Xinhua) -- Chinese President Hu Jintao inspected the southern province of Hainan before attending the annual meeting of the Boao Forum for Asia (BFA) opening on Saturday.     The forum, April 11-13, is a platform for high-level interaction between leaders from Asia and the world. Boao has been the permanent venue of the annual regional economic forum since 2001.     Hu, also general secretary of the Communist Party of China Central Committee, discussed reform and development issues with local officials and visited with a public made up of various ethnic groups during the inspection tour that started on Monday.     The island province marks the 20th anniversary of the founding of the Hainan special economic zone (SEZ) later this month. Hu visited an exhibition marking the anniversary at the provincial museum.     "Over the past two decades, Hainan's economic and social development has made a remarkable progress. The appearance of cities and villages has undergone profound changes. Practice shows the policy of setting up SEZ in Hainan is completely correct," said the president. Chinese President Hu Jintao (2nd R Front) talks with a farmer in a paddy field at Binglang Village of Fenghuang Town in Sanya, a city in south China's Hainan Province, April 9, 2008. President Hu made an inspection tour in Hainan Province on April 7-9    Founded in 1988, Hainan is one of the five SEZs established since 1980. The others are Shenzhen, Zhuhai, Shantou and Xiamen, all in southern China.     Hu showed his respect for the island's model workers, farmers, teachers and police who had made great contribution to Hainan's development. "You have done extraordinarily at ordinary positions," Hu told them.     The president also revisited the state-level Yangpu Economic Zone in the northwest of the island. Twelve years before, he had been to the zone.     Hu was very happy to learn that last year Yangpu's economy increased by 60 percent and its import and export value was up by 213 percent.     The president said he hoped Hainan to deepen reform, further implement the Scientific Outlook on Development and play a leading role in reform and opening up.     He later inspected a Sinopec oil refining company in Hainan and visited a 300,000-ton crude oil dock.     Leaving the oil-handling terminal, Hu went to the Yangpu Harbor, which boasted the best natural conditions among all deep water ports of the island. The throughput of the harbor, launched in 1990, reached 4.27 million tons in 2007.     Hu encouraged officials and workers to seize the regional economic cooperation opportunity. Chinese President Hu Jintao (2nd L) learns cowpea's growth and sale from farmer Huang Zhengguang (1st R) of the Li ethnic group at Shandao Village of Jianfeng Town in Ledong Li Autonomous County, south China's Hainan Province, April 8, 2008. President Hu made an inspection tour in Hainan Province on April 7-9    On his inspection tour, the president also went among farmers and into Li ethnic villages, learning their difficulties in farming and medical services.     Hu showed great concerns over the island's environment, stressing Hainan must promote the conservation culture, save energy resources and protect ecosystems.     "The education on environmental protection should be thoroughly conducted and ecological protection measures should be strictly implemented so as to effectively preserve the island's nature-bestowed original ecological wonder," Hu said.     Hu also visited a navy troop in Sanya City and examined their armaments. He also asked local officials to apply a cautious, industrious and clean work style.