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BEIJING, Sept. 11 -- Inflation eased to its lowest level in August since June last year, giving the government more policy leeway to prevent an economic slowdown.     The consumer price index (CPI), the main gauge of inflation, rose 4.9 percent year-on-year, compared to 6.3 percent in July, the National Bureau of Statistics (NBS) said yesterday.     The CPI has been sliding since May, but still many economists were caught by surprise by last month's drop because they had forecast it to be above 5 percent. The month-on-month fall was only 0.1 percent.     But last month's producer price index (PPI), a gauge of factory gate inflation, rose a record 10.1 percent year-on-year, after jumping 10 percent in July.     Nevertheless, the low CPI figure gives the government "more policy room to sustain growth," Citigroup economist Ken Peng said.     He suggested the authorities consider further policy changes favoring growth, which could shift to full gear next month.     Economic growth has been slowing since the second quarter of last year, when the government adopted monetary and credit measures to rein in inflation and prevent the economy from overheating further.     Yet economists began warning of a recession since the beginning of this year, especially because the country's export sector, a key growth engine, started losing steam on weaker foreign demand.     The government responded it would strive to maintain a stable economic growth this year, leading to speculation that it would soon ease the tightening measures. But any step to stimulate the economy, such as lower interest rates or faster loan growth, risks spurring demand and stoking inflation again.     "Unless there's an abrupt slowdown, there's no need for a major change in the marco-control measures," said Lian Ping, an economist with the Bank of Communications. "The current 10 percent GDP growth is largely seen as acceptable."     The CPI rise is likely to stabilize around 5 percent during the rest of the year, he said, because food prices may continue to drop. Inflation fell last month mainly because of a drop in food prices, which make up one-third of the inflation basket. Food prices slid 0.4 percent from July.     A falling inflation rate gives the government a good chance to lift its price control on products such as fuel, water, and electricity further, Lehman Brothers economist Sun Mingchun said.     In the past year, policymakers have managed to freeze the prices of public utilities, and fuel and power tariff. They introduced temporary price curbs on some other goods, too, to rein in inflation.     Yet soaring labor and raw material costs, reflected in the rising PPI figure, have eaten into the profit of local enterprises because price control and fierce competition prevented them from passing the inflationary pressure on to consumers.     Such price liberalization could make the CPI rise again in the next few months, Sun said.     "But if implemented in a gradual and orderly way, inflation should remain below 6 percent year-on-year during the rest of the year."

BEIJING, July 5 (Xinhua) -- Heavy rainstorms that swept through most parts of China since Tuesday have left at least 12 dead, seven missing and about 3 million affected.     The casualties were reported after the rainstorms and flooding killed 252 people across China in June.     The new wave of rainstorms have caused suspended shipping service in the Three Gorges section of the Yangtze River, blocked traffic in cities, delayed flights, destroyed homes, and flooded farmland.     Central China's Hubei Province and southwestern Yunnan Province on Saturday each reported that six were killed by the torrential rain.     Twenty-five cities and counties in Hubei, where the country's largest river Yangtze runs through, reported a total of 700 million yuan in damages (102 U.S. dollars).     As of 5 p.m. on Saturday, the province saw another four missing, over 26,600 people evacuated and more than 2.58 million others affected, according to the provincial civil affairs department.     The rains also damaged 105,000 hectares of farmland destroyed and toppled1,063 homes in Hubei. People walk and the vehicle moves on the flooded Weiming Road in Cangzhou City, north China's Hebei Province, July 5, 2008. Heavy rainfall hit Cangzhou on Saturday. The provincial government has sent four task forces to investigate the damages. And relief materials, including food, bottled water, tents and clothes, have been sent to the affected area.     Yunnan, where the rainfall over the past 48 hours set a record high, reported three missing, 11 injured, 9,800 evacuated and more than 1,000 homes collapsed, according to the provincial civil affairs department.     More than 970,800 people were affected by the rain-triggered disasters in the province as of 5 p.m. on Saturday.     Rescuers are searching for the missing, and the injured have been hospitalized, said the government.     The atrocious weather also triggered floods in the Yangtze River, where the two huge hydroelectric projects, namely, the Three Gorges and the Gezhouba, both started discharging water to lower the water level in the reservoir. The discharging would continue as more heavy rains were expected on the upper reaches of the river.     The shipping services between two dams were suspended for five hours before they were resumed at 2:30 p.m. on Saturday. A man rides bike on the flooded Weiming Road in Cangzhou City, north China's Hebei Province, July 5, 2008. Heavy rainfall hit Cangzhou on SaturdayFor thirsty Shandong province, however, the strong rainstorms is not all a bad thing. The province received an average 50 millimeters of rainfall since Thursday, greatly alleviating the drought since June.     However, local meteorologists also warned that the government should consolidate banks and reservoirs for possible flooding of the Yellow River.     More rain was forecast in the next two days in many parts of China and the China Meteorological Administration asked local governments to be prepared.

SANAA, June 25 (Xinhua) -- Chinese Vice President Xi Jinping said here Wednesday that China and Yemen share a big potential and many favorable conditions for expanding the scale of investment and cooperation.     Xi made the remarks in a speech at the opening ceremony of the China-Yemen Bilateral Investment Seminar, which attracted some 300 Chinese and Yemeni officials and entrepreneurs, including Yemeni Prime Minister Ali Muhammad al-Mujawar.     Xi said it is the natural requisite of economic development for the two countries to deepen mutually beneficial cooperation and create common prosperity.     Noting that Yemen has geographical advantages and rich reserves of natural resources, he expressed the hope that companies of the two countries could proceed from traditional friendship to mutual understanding and cooperation.     Xi said the companies of the two countries should stick to mutually beneficial and win-win practices so as to promote common development. Chinese Vice President Xi Jinping (R) meets with Yemeni Vice President Abdal-Rab Mansur Al-Hadii (L) in Sanaa, capital of Yemen, June 24, 2008. Xi started a two-day visit to Yemen on Tuesday    The Chinese leader encouraged entrepreneurs of the two countries to boost exchanges by actively improving the environment, expanding investment channels and optimizing investment structure.     He expressed the belief that under the support of the two governments and the joint efforts of Chinese and Yemeni entrepreneurs, the friendly cooperation between China and Yemen will witness even greater growth.     The seminar was jointly sponsored by the China Council for the Promotion of International Trade and the General Investment Authority of Yemen.     Yemeni Prime Minister al-Mujawar said at the seminar that China is an important, cooperative partner of Yemen. The two countries' relations enjoy a good momentum and there is a broad prospect of trade and economic cooperation.     He said Yemen welcomes investment from the Chinese companies in the country, especially in areas like energy, mining, fishing and infrastructure. The Yemeni government will create a favorable investment environment for these activities, he said.     Xi arrived here Tuesday for an official visit to Yemen. He will conclude the visit and fly back home Wednesday.

SHIJIAZHUANG, Sept. 23 (Xinhua) -- Babies were sick, hospitals crowded, consumers puzzled, senior officials sacked, farmers could not sell their milk, dairy firm employees had fears for future -- milk scandal affected the life of many Chinese but they were struggling through it.     Ten-month-old Wang Tianhao left hospital after six days of treatment. His mother relieved from scary and worry.     "I was so scared that I couldn't help crying on the first day he was taken into hospital," said the mother Jiang Aihua. The boy had drunk powdered milk containing banned chemical melamine made by Sanlu Group since he was born. Doctors found a stone of about 5mm in diameter in his kidney.     "He is getting better," said Lou Yan, a doctor in charge. "It will take some time to wash the stone out of his body. But he does not need to take any more drugs, just needs to drink a lot of water." She asked Jiang to take her son back home and have an examination next month.     In northern Hebei Province, center of the scandal, about 480 infant patients recovered and left for home by Monday noon while around 1,200 were still in hospital for observation. 　　REBUILDING TRUST     Another mother named Wang Lifang was at a loss on what to feed her baby daughter.     Besides Sanlu, 22 other dairy firms were also found to produced tainted milk power later, including several domestic dairy giants.     Some mothers turned to foreign brands for they lost trust on domestic firms. But Wang could not afford it with an annual family income of around 6,000 yuan (882 U.S. dollars). The price of foreign-made baby formula is three to four times of that for domestic products.     Parents tried many substitutes such as fresh milk, soy milk or even rice soup for their babies. Some even stopped feeding any food with milk for their children.     "I don't know what to do. I hope the government can give us a list of safe milk," she said.     To set up trust among customers, many dairy firms involved in the scandal jointly signed a statement promising to produce safe milk and never let this happen again. Police arrested four suspects and had other 22 in custody while Tian Wenhua, former board chairwoman and general manager of Sanlu, was arrested as well.     Several senior officials were dismissed from their posts including Wu Xianguo, the Communist Party chief of Shijiazhuang City, where Sanlu was based. On Monday, China's chief quality supervisor Li Changjiang resigned over milk scandal.     SEARCHING BUYERS FOR SPLIT MILK     On the wall of a milk station at Nantongye village, a slogan read, "Want to become rich? Raise fewer kids but more cows."     But villager Li Jufeng was planning to sell all the 13 cows his father raised.     "My dad was hit in a traffic accident two days ago. We need money to pay for his medical cost," said the 32-year-old. "If we keep the cattle, we can sell the milk to nobody and we have to feed them."     Dairy farmers at Nantongye village have long been suppliers of Sanlu, the biggest dairy producer in Hebei and nationwide. The company built five stations in the village to collect fresh milk. Since last Sunday it has stopped buying any milk from farmers as its plants were suspended from production.     Villager Li Zhidong's 18 cows produce about 160 kg of milk a day. In the past week, she had a loss of 330 yuan (48.5 U.S. dollars) per day.     It is now a good news for her that four dairy firms in Hebei have signed agreements with the provincial government to buy 2,500to 3,000 tonnes of milk formerly supplied of Sanlu, a government source told Xinhua.     The local government is also negotiating with Beijing-based Sanyuan Group and Shanghai-based Bright Dairy for milk purchase.     STAND TOGETHER THROUGH CRISIS     Sanlu elected its new board chairman and general manager Zhang Zhenling on Sept. 18. He has apologized to the public on behalf of the company and promised to deal with the incident properly and lead the group through the crisis.     Employees at the lowest level like Tian, a lady in her mid-thirties, were worried about their uncertain futures.     "I have no idea what will happen," she said. She had worked for Sanlu for 12 years and it was her first job. "What if the company shuts down and I lose this job? I am not young and it will be hard to find a new one. I have aged parents to support and a son in primary school," she said.     But most employees have stood with the company. Tian worked at the company from morning till night including weekends, helping set up booths, hand out notices and answer questions from customers.     "What I can do now is to do my best," she said. "I hope Sanlu could pull through it. "

Chinese President Hu Jintao visits a Pakistani medical team in Longnan city in northwest China's Gansu Province Sunday afternoon. (Xinhua Photo)    LONGNAN, Gansu, June 1 (Xinhua) -- Chinese President Hu Jintao visited a Pakistani medical team in Longnan city in northwest China's Gansu Province Sunday afternoon.     Hu went to a tent and shook hands with several Pakistani medical workers at the First People's Hospital of Longnan City. "When the Chinese people suffered the devastating earthquake, the Pakistani people expressed concerns, offered relief materials and sent a medical team to us. The Chinese government and people feel deeply grateful," Hu said.     The medical team consists of 28 people. Hu praised them for their excellent skills and all-out efforts.     Hu said the team symbolized the friendship the Pakistani people cherished for the Chinese people and expressed his wish that the friendship would last forever.     The team members said they felt Chinese people's hospitality and vowed to do their best for the quake victims.