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BEIJING, Sept. 22 (Xinhua) -- China's chief quality supervisor Li Changjiang stepped down Monday afternoon with the approval of the State Council after tainted dairy products sickened tens of thousands of infants and killed three. Wang Yong, former deputy secretary-general of the State Council, replaced him as the director of the General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ). Li was the highest ranking official brought down so far by the dairy product contamination scandal. Across the country, about 13,000 babies remain in hospital after falling ill from melamine-tainted milk powder, and nearly 40,000 others were also sickened but had been cured, according to the Ministry of Health on Sunday. Wu Xianguo, the Communist Party chief of Shijiazhuang City, the epicenter of the national dairy industry tremor in northern Hebei Province, was also sacked on Monday. Before Wu, Mayor Ji Chuntang and Vice Mayor Zhang Fawang as well as three other responsible city officials were sacked after locally-based Sanlu Group became the first dairy producer under the spotlight in the scandal. The latest government personnel reshuffle, together with the resignation of Shanxi governor Meng Xuenong following a deadly landslide triggered by the collapse of an illegal mining dump, sent a strong signal of the central government's resolution to hold relevant officials accountable for severe production and quality incidents, said professor Wang Wei of the National School of Administration. "Such a system is especially crucial to the building of a service-oriented government as the public, impressed with the Olympic efficiency of the governments at various levels, expect officials to retain quick-response and effective," Wang said. Under the Civil Servants Law effective as of 2005 and the State Council Regulations on the Punishment of Civil Servants of Administrative Organs enacted last April, heads of administrative organs who fail to fulfill their duties and cause avoidable severe accidents will face removal and severer punishment. A State Council decision released on Monday defined the Sanlu milk powder issue as a "sever food safety incident". Wu, who doubled as member of the Standing Committee of the Hebei Provincial Committee of the Communist Party of China, was removed for delaying the reporting of the issue to higher authorities and incompetence in the disposition. Li resigned taking the blame for supervision default. Professor Wang found Li's resignation "no wonder". "With tightened and more efficient supervision, pathogenic dairy products would find no way to get out of the production lines," he said. A combined result from purposeful cover-up of the producer and supervision default, the contamination scandal didn't emerge until Autumn. Wang Yuanping from Taishun City of Zhejiang reportedly lodged a complaint to Sanlu in May, suspecting that his 13-year-old daughter developed kidney stone after drinking its milk powder.
BEIJING, Aug. 8 -- China's consumer inflation may continue to decline in July, marking the second consecutive month this year that it has dropped, according to economists' estimates. That may mean a departure from the rising spiral of inflation after it peaked at an annualized 8.7 percent in February. Lehman Brothers economist Sun Mingchun said his team's research found the July consumer price index (CPI), the main barometer of inflation, may drop to 6.7 percent year-on-year from 7.1 percent in June. The domestic Bank of Communications research arm said the figure could fall at 6.4 percent, which is also the estimate of Southwest Securities. China's consumer inflation may continue to decline in July, marking the second consecutive month this year that it has dropped, according to economists' estimates. One of the reasons why prices are stable is that there has been no flooding, a regular feature of the rainy seaon, said Sun of Lehman Brothers. Daily price data from the Ministry of Agriculture and the National Development and Reform Commission show that agricultural product prices rose only slightly in July while meat prices fell. Weekly price data released by the Ministry of Commerce also showed a moderate decline in food prices. The relatively high statistical base of last July also contributed to the drop in inflation this July, said Guo Tianyong, economist with the Central University of Finance and Economics. China's CPI hit 5.6 percent year-on-year last July, the first time it reached the 5-percent level that year. "If no major natural disaster hits China in August, CPI could fall below 6 percent in August, providing more room for the government to remove its price controls," said Sun. Economists said that without many unexpected incidence, it will gradually ease to around 5 percent by the year-end. A possible price liberalization of oil products, however, should not be a one-off adjustment, which will put a huge pressure on the country's battle against inflation, Guo said. China raised the prices of oil products and electricity late June. Analysts said that once the inflation pressure eases, policymakers may start a second round of price liberalization, which may lead to a rebound in CPI. If such liberalization moves are indeed made, they should be done in phases, not in one go, said Guo. Only that will ensure inflation does not peak again, as it did in February. The pressure from the rising producer price index (PPI), which gauges ex-factory prices and influences CPI, may be a concern, but even taking into consideration its impact, consumer inflation may no longer exceed the February peak in the coming months and the first half of next year "The worst times are behind us," said Dong Xianan, macroeconomic analyst with Southwest Securities. "From the second half of last year, the tightenting stance had been obvious, which is a pre-emptive move to ensure the current easing of inflation." Macroeconomic growth The economic growth may gradually slow down in the rest of the year, analysts said, but the fine-tuning of policies would shore it up. Dong from Southwest Securities forecasts that given the current growth momentum, the whole-year figure for GDP growth may be 10.1 percent, well below the 11.9 percent of last year. Other estimates are around the 10 percent mark. The global economic slow-down, which reduces external demand for China's exports, will bring much trouble to China, but its domestic consumption and investment will remain stable, analysts said. More importantly, the central authorities may adjust its tight policies to cater to individual demand of regions and sectors that have found it difficult to survive the tightened policies.
BEIJING, Oct. 7 (Xinhua) -- Leaders of China's top political advisory body met on Tuesday to call for ideas on rural development and reform. The Standing Committee of the 11th Chinese People's Political Consultative Conference (CPPCC) National Committee will hold its third meeting in mid October. Its major topic is rural development and reform, according to a statement issued after a meeting of CPPCC National Committee chairman and vice chairpersons presided over by Chairman Jia Qinglin. Senior Communist Party of China (CPC) members will meet from Oct. 9 to 12 in Beijing to discuss major issues about promoting reform and development in the rural areas at the third Plenary Session of the 17th CPC Central Committee. Political advisors are expected to discuss the guidelines reached at the Party session, the statement said. "We shall present research findings our political advisors made about rural development and try our best to put forward as many good proposals as possible to the Party." At Tuesday's meeting, Jia called on political advisors to take an active part in a nationwide campaign to learn and implement the Scientific Outlook on Development. The campaign aims to push Party members, especially leading Party members and government officials, to learn how to implement the Scientific Outlook on Development and carry it out effectively. Political advisors should think about how to implement it in the CPPCC's work to improve its supervision on the ruling Party and participation in state affairs, Jia said.
BEIJING, Aug. 7 (Xinhua) -- Efforts should be made to increase power production and guarantee supply for both the Olympic Games and stable economic operation, said Vice Premier Li Keqiang on Thursday. With the summer energy consumption peak and the Games, power supply is a heavy task for relevant organizations, Li, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, said while inspecting Datang Group, a major power supplier in Beijing.Li Keqiang (C), Chinese Vice Premier and member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, inspects Datang Corporation in Beijing, capital of China, Aug. 7, 2008.He said that to ensure safe, stable power supply and generation, enterprises should pay special attention to production safety and improve the management and maintenance of power facilities. He also urged all organizations to use energy-saving technologies and products and promote education on energy-saving among the public to reduce energy waste.