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The central bank raised the reserve requirement ratio for banks by 0.5 percentage point yesterday to mop up excess liquidity resulting from a soaring trade surplus and increased money supply. After the increase, which will take effect on April 16, the ratio will be 10.5 percent for big bankers and 11 percent for smaller lenders. It is the third time this year the People's Bank of China has raised the ratio after similar rises in January and February. The bank reserve requirement refers to deposits banks are required to set aside as a reserve, which reduces their lending ability. "The move is directly aimed at mopping up excess liquidity," Zhao Xijun, finance professor at Renmin University of China, told China Daily, adding the ultimate objective is to maintain stable growth of the economy. In recent months, the trade surplus has expanded rapidly and money supply remained at a high. In the first two months, China's trade surplus amounted to .61 billion, a stunning jump of 230 percent over the same period last year. In February, M1, or cash in circulation and deposits, increased 21 percent year on year, a record high for the past 37 months, indicating increased liquidity pressure. Meanwhile, banks have accumulated 11.1 trillion yuan (.44 trillion) of idle funds that can be used for lending. In January and February, domestic banks extended new loans of 982 billion yuan (7 billion), about 260 billion (.6 billion) more than a year ago. As a result, urban fixed-asset investment has picked up to 23.4 percent year on year in the January-February period from about 20 percent in the fourth quarter of last year, reversing the trend of a slight slowdown since last July. On another front, the consumer price index rose to 2.7 percent, close to the warning line of 3 percent, in February. "The central bank has been closely monitoring the growth trends of the economy and is taking preemptive measures to keep it on the right track," said Zhao. Such a strategy is different from past years, when it seemed to have resorted to rather drastic measures to seek instant regulatory effect, said Zhao. The central bank raised interest rates three times in the past year; the most recent of which came into effect on March 18. Tang Min, chief economist with the Asian Development Bank in China, said yesterday that the adjustment in the reserve requirement ratio may be followed by another hike in the interest rate.

Four-yuan Scheme What can a part-time Chinese employee of McDonald's afford by his hourly pay? Only two small ice creams, which are valued at four yuan (US50cents). A McDonald's outlet. [File]American fast-food giants McDonald's and Kentucky Fried Chicken (KFC) are being bombarded for their work contracts which offer their part-time Chinese employees just four yuan per hour, well under the state requirement, state media reported. An employee is entitled to no less than 4.3 yuan per work hour, said a rule released by the Guangzhou city government last November. The hourly pay averages 7.5 yuan in the city. An unnamed source in Guangzhou told the New Express newspaper that the contract violated the legal rights of employees. "Once administrative departments discover acts of violations, officials will order these enterprises to revamp and compensate the employers for their losses," the source told the Guangzhou-based paper. "If the problem is so grave that a punishment will be handed out," the source said without giving details. The source also cast doubts on the probation system implemented by the fast-food giants. "Part-time employees don't need to undergo a one-month probation period." McDonald's and KFC have nearly 3,000 outlets all over China and a work force of nearly 200,000, according to a state media report. Zhu Yongping, a Guangzhou lawyer, has begun to move for the rights of employees. He told the paper that the work contracts have 'seriously violated' the legal rights of employees. A Lin, a McDonald's employee in Guangzhou, regarded McDonald's as a respectable foreign-funded enterprise before starting to work there. But the working experience has changed her mind. "I don't have enough rest. It seems that I was overly exploited." Cui Minghuan, Manager of KFC'S Guangdong market, refuted the claims of rights violations, saying the current rule of the minimum hourly rates of pay for the non-full-time employees implemented in the province is not applicable to the part-time employees working for KFC. "KFC does not breach relevant laws in China." Cui said these part-time employees are neither full-time workers nor non-full-time workers. "Their hourly rates of pay cannot be measured by the rule. An unnamed offical with the Provincial Department of Labor and Social Security said Cui's words are ridiculous. "So what kinds of workers they are on earth? " The official said the rule is applied to these part-time employees. Mcdonald said in a written statement that "it is always committed to relevant laws and regulations in China." Central Government Actions The report came just days after Chinese Premier Wen Jiabao, in his work report to the congress in early March, called for more efforts to implement the minimum hourly wage system in a bid to protect the workers' rights. The minimum wage system aims to protect the rights of Chinese employees. For example, Bejing has set a minimum wage about 550 yuan per month, while the economic hub Shanghai has a minimum wage about 650 yuan. The central government has beefed up efforts to protect the rights of its huge crowd of employees to quell any likelihood of unrest and maintain social stability. China is planning to adopt an unemployment law that aims to build an unemployment benefit system. The draft law is aiming at promoting employment around the country. The law states that the government will implement new policies, such as boosting professional training and increasing financial investment in employment promotion. As discrimination turns rife in China, the draft law contains a clause on anti-discrimination in an effort to provide employment equality in the country. The clause states that discrimination against job seekers with respect to their background, ethnicity, gender, religious beliefs, age, or physical disability, will be prohibited. The government is also taking actions to set up trade unions in foreign-funded enterprises in China. Up to date, about 26 percent of China's 150,000 overseas-funded enterprises have established trade unions, with a total membership of 4.29 million, previous media report said. However, McDonald's and KFC have not set up unions so far.

English graduate Chen Xia has never been short of admirers but the 25-year-old Nanjing native has chosen to tie the knot with a soldier who has neither a college degree nor a fat pay packet. Her mother, who married a soldier more than 30 years ago, well knows what Chen has in store. "Married but alone, you have to handle most domestic affairs yourself, as your husband is mostly away," said Zhang Yufen, Chen's mother. Zhang had several frank discussions with her daughter but the two ended up in agreement. "You can be free of anxiety while marrying army men. They are always reliable and loyal to the family," said Chen. In an era when young people are depicted as calculating and materialistic when choosing spouses, Chen is one of many who are keen on a partner in military uniform. A recent survey found that nearly two in three of 1,500 respondents would like to marry servicemen and women. Personal integrity, marital fidelity, stable jobs and increasing salaries are the top reasons given for the choice, according to the poll conducted by China Youth Daily. "The survey results are perhaps one of the best gifts for the August 1 Army Day," said a 26-year-old soldier surnamed Wu in Nanjing, capital of Jiangsu Province. "It makes me more confident of finding a dream girl." Marrying a soldier was popular before the 1980s, which meant not only a decent job but also glory to the whole family. "Many friends envied me when I married Chen Xia's father. He was a heroic figure in our eyes," said Zhang. But as the country turned more peaceful and prosperous, soldiers now live reclusive lives in camps and campuses. It has also become difficult for them to get a spouse as they are confined to a small social circle and don't enjoy a high pay. "Frankly speaking, I hesitated while Chen Xia planned to get married; afraid that she would suffer the same loneliness and economic pressure than I used to," said Zhang. "But I guess she knows the merits of marrying an army man."

Blogging, a form of citizen journalism, has caught on so much in China that even some government officials are getting into it.The highest-ranking official or former official to write a blog is Zhao Qizheng, former director of the State Council Information Office, now president of the Journalism School of Renmin University in Beijing.He launched the blog "Zhao Qizheng and his books" (http://blog.sina.com.cn/zhaoqizheng) on August 3 and uploaded several chapters of his latest work In the One World - 101 Tips on How to Communicate with Foreigners. One of them, about the importance of smiling, has been read by nearly 40,000 netizens since it was posted a week ago.In a letter of August 14, Zhao thanked netizens for reading and commenting on his blog and apologized that he could not respond to each comment or question because he could only surf the Internet for limited time every day, and that he was a slow typist.Some netizens have used his blog to speak directly with the former top news official.One of them, called "Peach", a journalism student complained of a perceived lack of jobs in the industry and asked for his advice.The direct interaction between bloggers is one of the most appealing elements about this form of communication.Arguably the most popular blog run by an official is that of Liao Xinbo, deputy director of the provincial health bureau of South China's Guangdong Province.Liao calls himself "Doctor Brother Bozi" and his blog (http://blog.sina.com.cn/liaoxinbo) has been read more than 650,000 times since it was launched last April. At present it ranks the sixth most popular blog in Guangdong.The health official is known for being outspoken. On Monday, he posted an article by an anonymous doctor which blamed China's apparent failure on medical reform over the last 30 years on the lack of fair pay for doctors."If the situation continues, the next medical reform is doomed to fail again," the post warned.Liao also argued in his blog that health services were not a commodity that should be "bought" by patients, a key point that health providers need to serve the public, instead of trying to rake in money.Netizens who agreed with Liao proposed the official lobby his allies at the provincial people's congress - the legislative body - to draft a law especially for medical contracts.Netizens even went as far as drafting their own medical contract law, which Liao posted on August 24 commenting: "I have never studied laws and cannot give any comments. I wish my friends who are interested to give their ideas".Dozens of lawyers responded.According to one of them, legal tangles in the medical sector were difficult to settle because there were already too many laws, but not one powerful or specific enough to tackle problems with malpractice disputes.The netizen proposed that it was with some urgency that a law was drafted that covered the entire sector, instead of one that specifically dealt with contracts.Whether or not the fact the netizens' law proposals were right or wrong, their interaction with this sort of blogging demonstrates how ordinary people can debate the merits of such proposals.Liao's blog, with its inspiring discussions, provides a prime example of a form of "direct democracy".There are no figures available as to how many officials have blogs in China.However, in Suqian, a mid-sized city in East China's Jiangsu Province, 81 middle and high-ranking officials in the municipal government have opened blogs on the government website (http://blog.suqian.gov.cn/).Their Communist Party secretary, Zhang Xinshi, took the lead."Zhang hopes that those who are in charge at the different government organs can also have blogs so that they can express their ideas, attract people's discussions and build an efficient channel of communication between officials and ordinary citizens," said a Suqian Daily report about a working conference this April.Zhang has updated his blog almost every day and written long articles on weekends about a wide range of topics from global climate change to professional education.An article on "civilized behavior" prompted the local Suqian Daily to open a column about the topic, and more than 100,000 pupils and high school students distributed pamphlets on civilized behavior in the streets of his city.Almost each of Zhang's online articles was read more than 400 times, but there have been few posted responses from the public.When a comment was made, it often turned out to be a pledge of a subordinate to implement the Party secretary's ideas, not public feedback.A report in the People's Daily last month said officials in Suqian had published more than 1,700 articles on their blogs and these articles were read by more than 760,000 netizens."It is a good thing that officials opened blogs and strengthen their communication with the ordinary citizens," Xie Chuntao, professor at the Party School of the Central Committee of the Communist Party of China in Beijing, said.As part of China's e-governance construction, 12,000 government websites have been built in the past decade, according a report by Xinhua News Agency last December.More than 96 percent of the central government organs, 90 percent of provincial governments, 96 percent of municipal governments and 77 percent of county governments have their own websites."By further exploring the communication possibilities of blogs, officials may better win the citizens' trust if there is successful communication between the two sides," said Mao Shoulong, political science professor at Renmin University of China in a commentary in the People's Daily last year.But he also feared that some officials may have their opinion influenced by the "small club in cyberspace"."Actually, if we want the government to get nearer to the ordinary citizens, we can make more efforts on improving our democratic system instead of using the highly personalized blogs," he said."At the current stage, we can improve the government websites that widely exist, and make them work better in publicizing policies and communicating with netizens. This is a more constructive choice."

The national workers' union on Wednesday pledged to work closely with authorities to issue a detailed regulation on the Labor Contract Law as soon as possible, to assist its application starting January 1."We'll actively promote and participate in the legislation and relevant legal interpretations to make the law more applicable, especially by making suggestions on some hotly debated issues," Liu Jichen, head of the legal affairs department of the All China Federation of Trade Unions, said at a press briefing.Liu did not elaborate or disclose a timetable, but the Outlook Weekly, a magazine under the official Xinhua News Agency, reported on Monday that an implementation regulation of the Labor Contract Law was expected by the end of the year. It also reported that a judiciary interpretation, drafted by the Supreme People's Court, would also be adopted soon to regulate loophole jumping.The Labor Contract Law, passed in June after 18 months of heated debate and public consultation, is considered the most significant change in the country's labor rules in more than a decade. It targets bosses and officials who exploited workers by establishing standards for labor contracts, use of temporary workers and severance pay.However, business lobbies worry that stricter contract requirements could increase costs and give them less flexibility in hiring and firing.The country's leading telecom equipment-maker Huawei Technologies in October encouraged some 7,000 veteran employees to resign and rehired them immediately afterward.The Labor Contract Law stipulates that an employee who has worked for a company for more than 10 years is entitled to sign an open-ended labor contract.However, the legislative affairs commission of the Standing Committee of the National People's Congress, the country's top legislature, made it clear on Saturday that such sidestepping is useless, because although the contracts end, employment relations still exist.At yesterday's conference, Liu said Huawei's dodge is only one of the three tactics the union discovered violating or circumventing the current Labor Contract Law. Firms would also fire employees and rehire them soon afterward as dispatch workers. The other strategy uses mass layoffs.For example, United States retailing giant Wal-Mart fired about 100 employees at its sourcing center in China last October, claiming the layoff was part of its global restructuring."The cause of these problems is that a small number of enterprises is trying to evade responsibility to optimize profits," Liu said. "We've begun intervening to stop such activities."

来源：资阳报