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BEIJING, Jan. 1 (Xinhua) -- China Dairy Industry Association (CDIA) on Thursday told Xinhua more information on setting up a medical compensation fund for victim babies in the tainted milk powder scandal. "The scandal caused great harm to infants and the society, so firms involved in the scandal feel very regretful for this. To be responsible for their wrongdoing and rebuild the dairy industry's reputation, these companies offer to shoulder social responsibilities," said the association. Sanlu, the dairy producer at the center of the tainted milk powder scandal, and other 21 firms blamed in the scandal had decided to set up a compensation fund for the victim infants. "The money from these companies for this fund has been in place now. The fund will cover the charge on acute disease medical treatment and the one-time cash payment for victims," said the Beijing-based association. But no specific amount of the fund or compensation for each victim baby was revealed. "The fund is big enough to cover all the medical care charge for the victim infants and the compensation work is now underway," according to the association. "After the acute disease medical treatment, if those infants develop related diseases before they are 18 years old, they can also get full reimbursement for their medical expenses from the fund," the CDIA added. The fund will be entrusted to China Life Insurance Co., Ltd., the country's leading life insurer, to manage. To make it easier for the victim families to get compensation, they can get the medical charge reimbursement through China Life's outlets nationwide. China's tainted dairy scandal was exposed in September after babies who had milk powder produced by the northern Hebei Province-based Sanlu Group developed kidney stones. Other leading dairy firms were also involved. The contamination killed six babies and more than 290,000 infants suffered from urinary problems such as kidney stones.
BEIJING, Dec. 8 (Xinhua) -- China's annual Central Economic Work Conference opened here Monday to set tone for the economic development next year. Observers believed the three-day event would give priority to efforts to maintain stable economic growth. They reckoned in 2009, China would see more risks for worse economic slowdown, more struggling smaller businesses, grim export situation and arduous task of transformation of economic growth pattern. "It is imperative for China to maintain an economic growth of at least 8 percent," said Zhuang Jian, senior economist with Asian Development Bank's China Resident Mission. It was hard for China to bear the consequences of a too slow GDP growth, Zhuang added, citing bankruptcy of numerous enterprises, more migrant workers being laid off and difficulties for college graduates to find jobs. China's macro-economic policies experienced a dramatic adjustment-- from "preventing economic overheating and curbing inflation" at the beginning of this year to "maintaining growth through expanding domestic demand" at present. In the first three quarters, the nation saw its GDP growth slowed to a single-digit rate for the first time over the past five years, thanks partly to macro-economic control efforts and the ongoing financial woes worldwide. "The Chinese economy has suspended continuous heating and proceeded into a period of slow down," Zhang Liqun, a researcher with the macro economy department under the Development Research Center of the State Council, commented. "The slowdown was worse than expected," said Ma Jiantang, head of the National Bureau of Statistics. Data from the bureau showed that the country's GDP growth was 10.6 percent in the first quarter, 10.1 percent in the second, and9 percent in the third. President Hu Jintao said at the end of November that the Chinese economy was pressurized by global economic downturn, obvious ebbing of demand from abroad and weakening of the country's traditional competitive edge. "Impact from the international financial tsunami on the Chinese economy has begun to show up, and to deepen into various sectors of the real economy," said Wang Yiming, deputy head of the macro economic research institute of the National Development and Reform Commission. Since mid October, the Central Government has promulgated a string of policies and measures to prevent the national economy from sliding drastically. They included end of a tight monetary policy and commencement of a moderately easy one, shifting the fiscal policy from "prudent" to "active", starting projects to improve infrastructure and promote people's livelihood, and, expanding domestic demand. The People's Bank of China announced tax exemptions and downpayment cuts as of Oct. 27 to boost the falling real estate sector. The minimum downpayment for a first-time buyer of a residence smaller than 90 square meters was reduced to 20 percent from 30 percent. Interest rates on mortgages for first-time buyers were cut 0.27percentage point. The floor for interest rates was lowered to 70 percent of the central bank's benchmark rate. The central bank cut benchmark interest rates by 0.27 percentage point as of Oct. 30, the third such move in six weeks. The benchmark one-year deposit rate dropped to 3.60 percent from 3.87 percent, while the benchmark one-year lending rate fell from 6.93 percent to 6.66 percent. Tax rebates were raised for 3,486 export items as of Nov. 1. The adjustment covered such labor-intensive industries as textiles, toys, garments, and high-tech products, accounting for 25.8 percent of products covered by customs tariffs. Rebate rates run roughly from 9 percent to 14 percent. On Nov. 9, state councilors announced a four-trillion-yuan (583.9 billion U.S. dollars) economic-stimulus package, which was seen as the most exciting stimuli in 10 years. To boost consumption, particularly in the rural areas where 900 million people inhabited, was important part of efforts to expand domestic demand, observers believed. China has launched a scheme to subsidize rural residents for buying home appliances since the end of 2007. It is estimated that in a period of four years, nearly 480 million units of refrigerators, washing machines, color TV sets and cell phones, which were in huge demand among farmers, will be sold in rural areas nationwide. That means 920 billion yuan to be spent by rural consumers. "There is still a large room for the government to mull more policies to boost consumption, such as raising the threshold for taxable income and increasing income for lower-income earners," said Cai Zhizhou, an economist with the prestigious Peking University. Export has since long been a major driving force for the Chinese economy. Economists believed the stable development of smaller enterprises, particularly the exporters, which provided jobs for 75 percent of urban employees and rural migrant workers, was related to the stability of the enormous Chinese labor market. How to prevent export from sliding down too fast is one of the top concerns of the Chinese government. "It is no doubt that China's export situation will become more grim next year. However, if the country manages to maintain a moderately fast growth in foreign sales of machines and electronics, it will likely achieve a growth of more than 15 percent in export at large," said Mei Xinyu, a trade expert with the Ministry of Commerce. China has taken a string of measures to boost development of smaller enterprises. "It is necessary for the government to work out more detailed, effective methods to mitigate tax burdens and enhance credit support for smaller businesses, and to help them with their efforts to promote technical upgrading and explore more markets," said Zhao Yumin, another economist with the Ministry of Commerce. The service sector, which was able to provide numerous jobs, was yet to be expanded substantially, Zhao added. Zhang Xiaojing, a senior economist with the Chinese Academy of Social Sciences, said that it was definitely wrong for China to waive long-term goals for short-term interests. He believed that to promote the shift of economic growth pattern and maintain the sustainable economic growth would be one of the important topics for the ongoing Central Economic Work Conference.
Chinese Premier Wen Jiabao (C front row) talks to students at the Beijing University of Aeronautics and Astronautics, China, on Dec. 20, 2008. Wen arrived in the university's library and chatted with students there on Saturday after attending the closing ceremony of a year-long exchange program between Chinese and Japanese young people. BEIJING, Dec. 21 (Xinhua) -- Chinese Premier Wen Jiabao has pledged to university students that the government would seek to provide more jobs for graduates and "put the issue of graduate employment first." "Your difficulties are my difficulties, and if you are worried, I am more worried than you," Wen told the students at the Beijing University of Aeronautics and Astronautics. Wen made the remarks in a surprise visit on Saturday afternoon after attending the closing ceremony a year-long exchange program between Chinese and Japanese young people together with former Japanese Prime Minister Fukuda Yasuo. He said the country is in a difficult period as the global financial crisis has continued affecting the country's real economy. The government has begun measures to sustain the economy, such as the four-trillion-yuan stimulus package and interests cuts. "We are considering taking more measures at proper time. But currently we are most concerned about two issues, migrant workers returning home and employment for graduates," Wen said. The financial crisis and China's slowing economic growth has forced 4 million migrant workers to return to their rural homes, according to a report from the Chinese Academy of Social Sciences. The report also said as of the end of this year, 1.5 million graduates are likely to have failed to find jobs, and the country could see an ever tougher employment situation in 2009 as there will be about 6.1 million seeking jobs. "We are also studying a package to guarantee jobs for graduates and it will kick in soon", Wen said. "The government will encourage major enterprises to increase recruits from graduates, seek more jobs in grassroots, offer opportunities of further study and skill training." Scientific research projects conducted by companies, institutions and universities should recruit graduates, and companies must not lay off graduates even if times are hard, he added. Wen reiterated "confidence", saying it is much more important than gold and currency.
BEIJING, Nov. 25 (Xinhua) -- Chinese Premier Wen Jiabao sent a congratulatory message to a UN meeting in observance of the International Day of Solidarity with the Palestinian People to be held Tuesday at the UN headquarters in New York. Wen extended warm congratulations to the opening of the meeting in observance of the International Day of Solidarity with the Palestinian People on behalf of the Chinese government. The Palestinian issue is the core of the Mideast problem. China staunchly supports the restoration of the legal rights of the Palestinian people as well as the Mideast peace process, the message said. China hopes that Palestine and Israel would stick to the path of peaceful negotiations on the basis of related UN resolutions and the "Land for Peace" principle to establish an independent Palestinian state at an early date, so as to realize peaceful coexistence between the Israeli and Palestinian states, it said. To resolve the Palestinian issue at an early date is the aspiration of the people in the Mideast as well as the common expectation of the international community, it said. As a permanent member of the UN Security Council, China will continue to support the United Nations in playing an important role in solving the Mideast problem and pushing forward the settlement of the Palestinian issue, said the message. The Chinese government will also work with the international community to make unremitting contributions to peace, stability and development in the Mideast, it added.
BEIJING, Nov. 19 (Xinhua) -- Chinese top legislator, Wu Bangguo, met here Wednesday with visiting speaker of the Slovak National Council, Pavol Paska, calling on the two sides to step up inter-parliamentary cooperation to further boost bilateral relations. Wu, chairman of the Standing Committee of China's National People's Congress (NPC), China's top legislature, highlighted China-Slovakia relations, noting that the ties already entered into a phase of development. Citing Slovakia as one of the fastest growing member states in the European Union (EU) and China as the biggest developing country in the world, Wu said that the two share a solid foundation for further cooperation. Wu Bangguo, chairman of the Standing Committee of the National People's Congress(NPC), meets with Pavol Paska, the speaker of the National Council of the Slovak Republic, in the Great Hall of the People in Beijing, China, on Nov. 19, 2008 He added, China is willing to explore new approaches to expand cooperation in an aim to optimize the two-way trade structure and increase mutual understanding between the two businesses. "We should give full play to the two business communities and help them promote bilateral trade relations to a higher level," Wu said. Paska said that Slovakia attaches great importance to its ties with China and hopes to learn China's successful ways of boosting national development. It also wants to forge cooperation with China in fields such as infrastructure. He noted that Slovakia, as a new EU member state, is willing to play a role of bridging the EU-China strategic partnership for further development, reiterating that Slovak parliament and government will continue to cohere to the one-China policy. The two sides also exchanged their views on inter-parliamentary cooperation, agreeing to push forward collaboration among parliamentary special groups and exchanges of the young parliament members in an effort to generate contribution to the new growth of the bilateral relations. Paska arrived here Monday for a 5-day visit to China as Wu's guest.