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MOSCOW, March 30 (Xinhua) -- Russia and China "have similar positions" on the reform of the international financial system, Russian presidential aide Arkady Dvorkovich said Monday. Both Russia and China have voiced support for the notion of a "supra-national reserve currency," and the two countries have held discussion over the issue, Dvorkovich told reporters at a briefing. "Indeed, we have similar positions," Dvorkovich said, adding the G20 London summit may initiate broad consultation over the issue. The applicability of a supra-national reserve currency in the international balance and trade can be taken into consideration in the short term, said Dvorkovich, who added there is yet no serious discussion about using the currency in the cash flow. The presidential aide also said Russian Ruble and Chinese Yuan should be included in the basket of the IMF's Special Drawing Rights (SDRs). When speaking of the upcoming meeting between Chinese President Hu Jintao and his Russian counterpart Dmitry Medvedev on the sidelines of the London summit, Dvorkovich noted it revealed the significance of bilateral ties for both countries. Sharing a profound prospect for further cooperation, Russia and China have huge potentials for cooperation in the fields like energy, industry, service and cultural exchanges, he added. Dvorkovich told Xinhua that having great potential for cooperation, BRIC (Brazil, Russia, India and China) share "similar interests" on the assurance of the world's stable economic growth and the reconstructure of the international financial supervision system. BRIC will continue to play a bigger role in the future global economic and financial system, he said. Yet the four countries will not issue a joint statement alone at the G20 summit, since only one comprehensive statement, indicating all parties' agreed stance, will be passed at the summit, he added.
GUANGZHOU, Feb. 6 (Xinhua) -- Millions of migrant workers from rural areas in China are expected to enjoy their golden years with pensions, like the urbanites do, as the country's top social security authority has planned to help them systematically gain access to the service. A document released Thursday by the Ministry of Human Resources and Social Security to solicit public opinions said migrant workers could move their pension accounts from one place to another when they move, a practice that is currently banned for lack of proper regulations. "With the new rule, I can get pensions like urban elders when I am old," said Liu Xinguo, a migrant worker who comes from central Hunan Province. He is now working in a property management company in Guangzhou, capital of Guangdong Province. The proposed rule stipulates migrant workers who have joined pension plans can continue their pension accounts as long as they get pension premium payment certificates in their previous working places. Currently, Liu himself puts 100 yuan per month into his pension account while his company contributes 180 yuan on his behalf. "If I withdraw my pension account, I will no longer get the company's input in my pension account," said Liu, who has been working in Guangzhou for more than a decade. In fact, many migrant workers who have had pension accounts, have chosen to withdraw their accounts before they leave the place where they work and plans to work in other places. They only get the fund they have paid and cannot get the company's part in the accounts. Tang Yun, who comes from Jiangxi Province and is now in Dongguan City, Guangdong, is an example. Four months ago, Tang joined the pension plan in Dongguan. But now he plans to go to Shenzhen to find a new job. He had to withdraw his pension account and only got some 600 yuan in cash from the account. "I had no choice but to withdraw as the pension account could not go to Shenzhen," said Tang, who has been working in Guangdong for 8 years. However, with the new regulation, migrant workers will no longer face the same problem again. "It is a breakthrough in the pension system for migrant workers," said Cui Chuanyi, a rural economy researcher of the Development Research Center under the State Council, or cabinet. The new method removes the fundamental hurdles for migrant workers to join pension plans and protects their rights and interests, said the researcher. According to figures with the Ministry of Human Resources and Social Security, China has some 230 million migrant workers. By the end of last year, only 24 million joined pension programs. In addition to the transfer ban, high pension premiums present a challenge to the small number of migrant workers who do carry pension plans. According to the country's current regulations, the pension premium for urban workers include the employer's payment of 20 percent of an employee's salary and the employee's payment of 8 percent of his or her salary. The new rule says employers will pay 12 percent of employees' salaries and the employee will pay 4 to 8 percent of their salaries to meet the pension premiums. "The new rule will reduce the burden of companies and migrant workers in pension premium payment," said Cui Chuanyi. "That will encourage more companies to support the establishment of pension plans for migrant workers." The new regulations will also make it is easier for migrant workers to accumulate the 15 years of pension premium maturity required for receiving pensions, as the pension premium terms will be added when they move from place to place. In the past, the maturity was reset each time they withdrew. Chen Xinmin, a professor at South China Normal University, said from the point of view of narrowing the rural-urban gap, the adjustment of the pension system for migrant workers would have a far-reaching impact. "Given the fact that migrant workers have become a major part of China's industrial workforce, the new rule means a significant step forward to eliminating urban-rural differentiations and improving farmers' welfare," said the scholar. The upcoming revision of the pension system for migrant workers will also accelerate the urbanization process in China, said Chen. An official with the Ministry of Human Resources and Social Security said Thursday the country was also planning to set up a national social security information consultation system starting with migrant workers. The system will use the identity card number of a citizen as his or her life-long social security card number.

GUILIN, (Guangxi), Feb. 14 (Xinhua) -- China will tighten water resources management and take measures to reduce waste to cope with worsening water shortage, Water Resources Minister Chen Lei said here Saturday. Water shortage impelled us take into consideration of overall economic and social development and economical use of water resources to ensure sustainable economic and social development, Chen said at a national conference in Guilin, in southern Guangxi Zhuang Autonomous Region. China is planning to reduce water consumption per unit of GDP to 125 cubic meters by 2020, down 60 percent from now, Chen said. Water consumption averaged 229 cubic meters per 10,000 yuan worth of products, according to statistics provided by the Ministry of Water Resources (MWR) at the end of 2008. That figure was down 10 percent compared with the previous year. Statistics released Saturday showed the country lacked 40 billion cubic meters of water every year, with almost two thirds of cities suffering various levels of water shortages. More than 200 million rural people face drinking water shortages. At the same time, farmland stricken by drought reached 230 million mu (15.3 million hectares) every year, nearly 13 percent of the total farming area. The most severe drought in half a century, which is hitting China this spring, affected 111 million mu of crops so far, with 4.68 million people and 2.49 million livestock threatened by water shortages, according to official statistics from the State Flood Control and Drought Relief Headquarters. "We must take strict measures to preserve water resources in the face of the severe lack of water worsened by factors such as overuse, pollution and drought ," Chen said. The ministry also expected to increase 79.5 billion cubic meters of water resources by 2020 and secure water supplies for both urban and rural people. Chen proposed reinforcement of laws and regulations on water allocation, consumption and preservation as a fundamental way to achieve this goal.
BEIJING, Feb. 13 -- Chinese banks issued 1.62 trillion yuan (7 billion) in new loans in January, up 101 percent year-on-year, prompting some economists to say the government might not cut interest rates for the time being to boost the economy. The massive jump in lending is equal to about one-third of the loans issued in the whole of 2008, a year that began on a generally tight credit line, the central bank said yesterday. M2, which includes cash and all types of deposits and indicates overall liquidity in the financial system, grew in January, too, by 18.8 percent year-on-year. It increased 17.8 percent in December. The massive growth in lending comes at a time when banks are rushing to cherry-pick the juiciest stimulus-package projects, especially major infrastructure ones that need long-term investment, the economists said. Chinese banks issued 1.62 trillion yuan (7 billion) in new loans in January, up 101 percent year-on-year The government announced a 6-billion package on November 9 to boost domestic demand and shore up investment. Though the central government will shoulder one-third of the cost, banks will play an important role in financing the construction of bridges, railways and highways. "The banks are fighting for the best projects in the government's stimulus package," said Ha Jiming, chief economist of China International Capital Corp. "It's not surprising to see that an array of the deals were sealed in the past month." "The massive lending growth minimizes the need to further cut interest rates heftily," said Lian Ping, chief economist with Bank of Communications. "The liquidity problem should ease with such a growth." The central bank has cut the benchmark lending rate by 2.16 percentage points in the past four months and reduced the deposit reserve requirement ratio in order to ensure there's enough liquidity in the market to boost the economy. The growth in lending could also prove to be a blessing for cash-strapped domestic enterprises trying to stay afloat amid shrinking overseas demand and waning consumer confidence. Central bank figures show bill financing, which supplies working capital, accounted for 39 percent of the new loans. Medium and long-term corporate loans made up 32 percent. "It (growth) reduces the default risks of domestic firms, which in turn eases worries over bank asset quality at least in the short term," said Sun Mingchun, an economist with Nomura International. The economists said the dramatic rise in lending could be partly attributed to pent-up demand for loans last year. The central bank had imposed a curb on lending till November last year to combat inflation and prevent the economy from overheating. That left "many firms, especially small- and medium-sized ones, facing a severe cash flow problem", Sun said. Policymakers lifted the curb in November and raised the target for M2 growth to 17 percent for 2009, up from 16 percent that had been in practice since 2006. The move is expected to ensure there's enough liquidity in the market to spur investment and boost the economy, whose growth dropped to a seven-year low of 6.8 percent in the fourth quarter last year. "Credit expansion in the first quarter of this year is expected to be very high because banks can maximize investment returns by front-loading new loans," said Jing Ulrich, managing director and chairwoman of China Equities at JP Morgan. But Ulrich cautioned against a possible rise in credit risk because the increase in liquidity could cause a sharp rise in banks' non-performing loans.
nturns that a retreat to narrow, short-term protectionism policies would only serve to deepen the global recession and we must not and will not allow that to happen again," said Brown. Brown said that Britain and China supported the reform of international institutions and the creation of an early-warning system for the global economy. The two countries would push these and other proposals at the London Summit of G20 nations in April, he added. Wen arrived in London on Saturday for a three-day official visit. Britain is the last leg of his week-long European tour, which began on Tuesday and has already taken him to Switzerland, Germany, the European Union headquarters in Brussels and Spain. During the visit, Wen met with people from political, business and financial circles. He also delivered a speech at the University of Cambridge. The premier is also paying a return visit for Prime Minister Gordon Brown's China tour early last year, as part of a regular high-level meeting mechanism between the two countries.
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