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BEIJING, May 6 (Xinhua) -- China's central bank said Wednesday the economy is doing "better than expected" in the first quarter, and pledged to maintain "ample" liquidity in the financial system for economic recovery.     China would stick to its moderately easy monetary policy and ensure "ample" liquidity at banks, the People's Bank of China (PBoC) said in its quarterly monetary policy report posted on its website.     The country has pumped 4.58 trillion yuan (670 billion U.S. dollars) of new loans into the economy in the first quarter to stimulate growth.     The figure is already nearing 5 trillion yuan of new loans targeted for the whole year. In March alone, new loans increased by a record 1.89 trillion yuan.     The country's financial institutions and enterprises would digest the huge amount of new loans in the following months, the report said.     Industry insiders have said credit extended by China's banks in April may have dropped to above 600 billion yuan after staying at above 1 trillion yuan for three straight months.     The central bank said new lending from commercial banks focused on government-backed projects. It encourages more bank loans to be channeled to small and medium-sized enterprises as they play an important role in the national economy and in increasing employment.     The central bank said in the first-quarter monetary policy report it would continue to instruct financial institutions to extend new loans, despite the earlier surge.     The pick-up in bank lending is conducive to stabilize the financial market and boosting market confidence, PBoC said. Meanwhile, the bank urged lenders to improve credit quality to avoid a possible rebound in bad loans.     There have been "positive changes" in the economy in the first quarter, the bank said, echoing remarks made by Premier Wen Jiabao last month.     The quarter-on-quarter growth is improving, compared to the fourth quarter of last year, it said, without giving specific figures.     China's economy expanded 6.1 percent in the first quarter, the lowest pace in 10 years and down from 9 percent in the fourth quarter last year.     The central bank also said foundations for the recovery are not solid, as uncertainties in external economies still exist and private investment is yet to become active with new lending concentrated on government projects.     In listing uncertainties ahead, the bank said the country still has to battle against the financial crisis that is unfolding and a collapse in external demand that is hurting exports.     The country is also under great pressure to create enough jobs and from a slower growth in residents' income, which would suppress future consumption, it said.     The bank also warned overcapacity and insufficient demand may drive prices lower in the country with the world economy in a downturn.     But it also said continued falls in prices may become less likely along with the world recovery, a turnaround in the national economy and fast credit growth.     "Prices of primary products and assets may rebound quickly once investor confidence is restored, as the global credit is relatively loose thanks to injection of liquidity and stimulus packages across the world," the bank said.     The central bank also said it was concerned that the extraordinary monetary policy adopted by other major economies would result in inflation risks.     It referred to the quantitative easing policy adopted by the U.S., Japan, Britain and Switzerland to pump cash into their economies.     The quantitative easing policy meant increasing currency supply through purchasing mid- and long-term treasury bonds after central banks cut interests rates to near zero.     The extraordinary monetary policy harbored huge risks for international financial markets and the global economy, said the central bank.     It would increase the risk of global inflation, said the central bank, suggesting it would create new assets bubbles and inflation if central banks of major economies failed to mop up thehuge liquidity when the global economy recovered.     "A policy mistake made by some major central banks would put the whole world in risk of inflation," it said.     The quantitative easing policy would also make exchange rates of major currencies more volatile, according to the report.     The central bank cited the U.S. move to purchase treasury bond in March as an example, saying although the dollar had appreciated against other major currencies, it fell after the purchase.     PBoC said the policy would leave the bond markets subject to fluctuations.     It said massive purchase of mid- and long-term treasury bonds may keep yield at a low level. But in the long run, as the financial markets returned to stability and the economy recovered, inflation expectations would grow, interest rates would rise, and bond prices would adjust sharply, according to the report.

EDINBURGH, May 9 (Xinhua) -- Chinese Vice Premier Wang Qishan said Friday during a visit to Scotland that China hopes to strengthen cooperation with Scotland, especially in the areas of education, culture, tourism and finance.     Wang, who is on an official visit to Britain, spoke during a meeting with Alex Salmond, Scotland's first minister.     Both sides praised the friendship between China and Scotland and expressed a readiness to strengthen their cooperation as part of an effort to promote the all-round strategic partnership between China and Britain.     During the meeting, the two also exchanged views on how to tackle the global financial crisis.     "Currently we should further strengthen confidence in the market and recover the functions of the financial market as soon as possible," Wang said.     After the outbreak of the Asian financial crisis, China adopted a series of measures that pulled it through the trouble and helped to maintain the stability of the financial market, Wang said.     Salmond spoke highly of the economic stimulus packages arranged by the Chinese government to tackle the current financial crisis.     Wang arrived at Edinburgh on Friday after a visit to the Europe Union

BEIJING, June 22 (Xinhua) -- China's top legislature Monday began to review the first draft law on diplomatic personnel which intended to standardize management of diplomats in foreign countries and international organizations and improve their well-beings.     The draft, submitted by the Ministry of Foreign Affairs to the ninth session of the Standing Committee of the 11th National People's Congress (NPC) for a first reading, said the government should establish a floating mechanism to raise the diplomats' wages and other benefits.     China has about 5,000 diplomats serving in more than 250 embassies, consulates general and other overseas organizations who were sent by 32 domestic agencies of the central government.     The draft law will be the first of its kind written to regulate Chinese government agents working in the 171 countries that China so far has diplomatic ties with.     If a diplomat's spouse works for the government, a public institution, a state-run enterprise or is an active-duty military member and decides to move abroad with the diplomatic staffer, he or she could not be dismissed or face any charges from their employer, it said.     The draft only applies to overseas employees with diplomatic rank, not translators, messengers, chefs, drivers and other noncommissioned staff.     It also mandates that diplomats intending to marry must have their prospective spouses vetted, and that divorces must be promptly reported.     If a diplomatic spouse acquires a foreign nationality or permanent residence permit, the diplomat will be called back before the overseas tenure ends, the draft said.     Diplomats' domestic agencies would also have the power to decide if the spouse could accompany them abroad or whether those who remain in China would have government-paid visits to the diplomats.

URUMQI, July 9 (Xinhua) -- The Chinese government and the Communist Party of China (CPC) will severely punish the outlaws in the Xinjiang riot, and restore normal social order in the region as soon as possible, senior Chinese leader Zhou Yongkang said here Thursday.     Authorities would take stability as their top priority at hand, and crack down hard on violence, in accordance with laws to protect the lives and property of people of all ethnic groups, and safeguard ethnic unity, said Zhou, a member of the Standing Committee of the Political Bureau of the CPC Central Committee. Zhou Yongkang (C), member of the Standing Committee of the Political Bureau of the Central Committee of the Communist Party of China, visits Aygul, an injured woman of minority group, at a military hospital in Urumchi, capital of northwest China's Xinjiang Uygur Autonomous Region, July 9, 2009. Zhou started an inspection tour in Xinjiang on Thursday.At least 156 people were killed and more than 1,000 injured in the riot on Sunday in Urumqi, capital city of the Xinjiang Uygur Autonomous Region.     When visiting civilians injured in the riot Thursday afternoon at a military hospital, Zhou Yongkang promised that violent outlaws in the deadly riot would receive severe punishment in accordance with China's laws, and that the normal order would be restored. Zhou Yongkang (R, front), member of the Standing Committee of the Political Bureau of the Central Committee of the Communist Party of China, shakes hands with a policeman on duty in Urumchi, capital of northwest China's Xinjiang Uygur Autonomous Region, July 9, 2009. Zhou started an inspection tour in Xinjiang on Thursday.He urged medical workers to provide better treatment to the injured, and save the lives of those in serious conditions "at all cost".     Zhou also called on troops and police officers on duty in Urumqi to enforce the laws justly, and "crush any attempt by hostile forces from home and abroad".

YEKATERINBURG, Russia, June 15 (Xinhua) -- Chinese President Hu Jintao met here Monday night with Indian Prime Minister Manmohan Singh.     Hu said China has always striven, steadfastly and from a strategic and long-term perspective, to promote good neighborliness and friendly cooperation with India, an important neighbor of China and also a fast-growing emerging power.     The Chinese side is ready to work with the Indian side to maintain the sound momentum for development of the bilateral strategic and cooperative partnership, make greater efforts to implement the "10 strategies" reached between the leaders of the two countries, enhance mutual political trust and reciprocal cooperation in various fields, take into consideration each other's concerns and core interests, and strengthen coordination and cooperation on major international and regional issues, said Hu. Chinese President Hu Jintao (L) meets with Indian Prime Minister Manmohan Singh in Yekaterinburg, Russia, on June 15, 2009    He noted that the two sides should focus on the following key areas in efforts to promote bilateral ties.     The first is to strengthen high-level contacts.     The Chinese side welcomes Indian President Pratibha Patil to visit China in the latter half of this year, and Chinese leaders are considering visiting India at a time convenient to both sides.     The Chinese side agreed in principle to establish a hot line between the Chinese premier and the Indian prime minister.     The second is to deepen bilateral economic and trade cooperation of mutual benefit. The two sides should continue to tap potentials, encourage two-way investments, expand cooperation in contracted projects, and strive to realize the target of 60 billion U.S. dollars in bilateral trade in the year 2010.     The third is to work together to respond to the impact of the international financial crisis. The Chinese side will strengthen communication and coordination with the Indian side, maintain close cooperation within the frameworks of BRIC, the five developing nations and the Group of 20, safeguard the common interests of the developing countries, and strive to contribute to economic recovery and development of Asia and the world at large.     The fourth is to strengthen bilateral defense cooperation which is an important component of overall bilateral cooperation. The two sides should make concerted efforts to strengthen cooperation in this regard.     The fifth is to strengthen cultural exchanges. Both sides should make good planning and preparations for a series of activities, such as those marking the 60th anniversary of bilateral diplomatic ties and concerning The Chinese Festival in India and the Indian Festival in China. Both sides will continue to receive each other's delegations consisting of young people, officials, and people from news media and different localities, promote friendly exchanges in various fields and at various levels through visa facilitation and increasing direct air flights.     On border issues, Hu expressed the hope that the two sides would continue to advance the negotiating process in the spirit of peace and friendship, equal consultations, mutual respect and mutual accommodation so that the border issues could be properly resolved at an early date.     Both sides should do their utmost to ensure that the border issues do not undermine the overall situation of bilateral ties, he said.     Before these issues are eventually resolved, both sides should make joint efforts for maintaining peace and tranquility along the border region, he said.     With the efforts of both sides, Hu said, the Sino-Indian strategic and cooperative partnership will see sound development and the growth of bilateral relations will bring benefits to the two peoples.     Singh said the two countries forged the strategic and cooperative partnership during his tenure as prime minister. Bilateral ties have been     deepening, he said.     India will give top priority to its relations with China and is committed to advancing bilateral cooperation in various fields on the basis of progress made in the past, he said.     He expressed his appreciation for the increasingly important role China is playing in international affairs and China's important contributions to world peace and development.     He said China is not a competitor and that there is enough room in the world for the two countries to achieve development. The two countries share the desire to promote their bilateral ties and there are also potentials for them to cooperate on global and regional issues, he added.     Singh described economic cooperation as an important "pillar”of the overall bilateral relationship and said enhanced economic ties could     give an impetus to the development of bilateral ties.     On military-to-military exchanges, Singh said that steady growth in exchanges between the armed forces of the two countries is to enhancing mutual trust and mutual understanding.     He also said that India and China share common interests on such issues as global trade and investment, climate change and the reform of the international financial order and should strengthen consultation and cooperation in addressing these issues.     On border issues, he said the Indian government is seeking a solution that should be fair, reasonable and acceptable to both sides. Before the issues are finally resolved, efforts should be made to ensure peace and tranquility along the border region, he said.     India recognizes the Tibet Autonomous Region as part of the territory of the People's Republic of China and will not allow anyone to carry out anti-China political activities in Indian territory, he said.     He said a healthy and stable bilateral relationship serves the interests of the two countries and also conforms to the interests of the region and the world at large.     Hu and Singh are here to attend the annual summit of the Shanghai Cooperation Organization (SCO) and the first meeting of BRIC, scheduled to be held in Russia's third largest city Wednesday.     Indian is one of the four observers of the SCO, a regional organization now groups China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. The other three observers are Pakistan, Mongolia and Iran.     BRIC is an acronym for the four key emerging economies -- Brazil, Russia, India and China. Chinese President Hu Jintao (3rd L) meets with Indian Prime Minister Manmohan Singh (3rd R) in Yekaterinburg, Russia, on June 15, 2009