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BEIJING, Aug. 27 (Xinhua) -- The Chinese government will stick to an economic policy that focuses on curbing inflation for the rest of the year, a senior official on Wednesday told China's top legislature, as slowing output and rising prices loom over the post-Games economy. Economic planners would exert themselves to increase supplies of necessities, closely track key prices and make price controls more effective, National Development and Reform Commission deputy chief Zhu Zhixin told the fourth session of the Standing Committee of the 11th National People's Congress. "A lot of factors can drive prices up," said Zhu. "There is a strong demand for primary products, with prices hovering high on international markets, while more expensive land and labor at home will add to costs." His statements came after China's main inflation indicator showed a deceleration in July and as the world wondered where the already slowing economy would head after the glitz of the Games. The consumer price index was up 6.3 percent last month over July last year, lower than the 7.1 percent in June and 7.7 percent in May, as tighter monetary policies adopted last year seemed to bite. Meanwhile, the country's economic output in the first half was 10.4 percent higher, compared with 10.6 percent in the first quarter and 12.2 percent in the first half last year. Zhu said the output slowdown was "a moderate correction from a high level". "The national economy is heading in the direction expected by the macro-control policy." Zhu cited the pressures on some industries and enterprises as one of the major conflicts in the economy, saying it would take time for the latest supportive policies to show an effect and for companies to adjust. He told the top legislature the government would continue to seek a balance between fighting inflation and maintaining growth. Tasks for the rest of the year included improving the contribution of domestic consumption to economic growth, boosting agricultural output and increasing aid to small enterprises, he said. The government had been focusing on preventing the economy from overheating before changing the goal to "keeping steady, rapid growth" in July. Many analysts foresaw a loosening of the tight monetary policy to provide liquidity for enterprises, especially exporters, that were squeezed by weakening demand, credit controls and rising costs. Earlier this month, administrators raised the export tax rebate rates for some textiles and garments, while the central bank allowed more credit to small and medium-sized enterprises. "The fiscal and monetary policies are likely to be eased, if the current trend is a guide," said CITIC Securities analyst Zhu Jianfang. "The central bank is not expected to come up with any big tightening moves after the Olympics."
BEIJING, Sept. 27 (Xinhua) -- The spacewalk performed by Chinese taikonauts Zhai Zhigang Saturday afternoon marks a major breakthrough in China's space program, Chinese President Hu Jintao said. Hu talked with the trio taikonauts at the Beijing Aerospace Control Center for the Shenzhou-7 mission at 6:35 p.m. Saturday, when he inquired the physical conditions of the three taikonauts. "Your country and your fellow citizens thank you for your devotion to the space program," he said. He congratulated the trio over the success of the spacewalk, and encouraged them to continue the efforts for a "complete success. Zhai Zhigang was assisted during the spacewalk by Liu Boming in the orbit module. China is the third country in the world to accomplish the feat after the United States and Russia. "How did you feel like in space?", President Hu asks spacewalker Chinese President Hu Jintao asked Chinese taikonauts what it was like walking in space in a conversation with them after the trio successfully realized the country's first-ever space walk on Saturday. "How did you feel like in space after exiting the module?" asked smiling Hu, who was talking on a phone that connected him at the Beijing Aerospace Control Center (BACC) with astronauts on the spacecraft Shenzhou-7. "I felt superb," answered Zhai Zhigang, who carried out about 25 minutes of extra-vehicular activity (EVA) about 343 km above the earth after floating out of the Shenzhou-7 cabin on Saturday afternoon. "The process of taking on the Feitian spacesuit went smooth," said Zhai, looking confident and radiant on the screen at the BACC. "In the vast space, I felt proud of our motherland." Hu congratulated the astronauts on the successful feat and encouraged them to carry on efforts to fulfill the mission. "The thing I most want to know is how are you feeling now and how is your work going," Hu asked the trio. "We feel well," said Zhai. "We conducted the space scientific tests as planned and the EVA went smoothly." Hu hailed the spacewalk as a sign of the country's progress in space scientific technology. "You have made outstanding contribution to our country's space project," said Hu. "The country and the Chinese people are grateful to you." At 4:43 p.m. (0843 GMT) on Saturday, Zhai slipped out of the orbital module of Shenzhou-7 in a head-out-first position, wearing a 4-million-U.S.dollar homemade Feitian space suit. China's first-ever spacewalk marked a remarkable progress in the country's ambitious space program, which will eventually lead to the establishment of a permanent space station. The video grab taken at the Beijing Space Command and Control Center on Sept. 27, 2008 shows Chinese taikonauts (L-R) Jing Haipeng, Zhai Zhigang and Liu Boming talk on the spacecraft Shenzhou-7 with Chinese President Hu Jintao who is in Beijing, capital of China, Sept. 27, 2008.
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."
DUSHANBE, Aug. 26 (Xinhua) -- Chinese President Hu Jintao arrived in Tajikistan's capital Dushanbe on Tuesday for a state visit and to attend the 8th Shanghai Cooperation Organization (SCO) summit, scheduled for Thursday. Hu flew to Dushanbe from Seoul after concluding a state visit to the Republic of Korea, and was met at the airport by Tajik President Emomali Rakhmon. During his stay in Dushanbe, President Hu will hold talks with Rakhmon and sign bilateral cooperation deals related to political, economic and trade exchanges, according to a senior official of the Chinese Foreign Ministry. In a written speech delivered at the airport, Hu said China and Tajikistan are friendly neighbors sharing common mountains and rivers. Since the two countries forged diplomatic ties 16 years ago, bilateral relations have witnessed smooth development with tangible results achieved in political, economic, security and other areas, he said. Chinese President Hu Jintao (R Front) shakes hands with South Korean Prime Minister Han Seung Soo during their meeting in Seoul, capital of South Korea, Aug. 26, 2008 The two countries have resolved lingering border disputes and signed a treaty of friendship and cooperation featuring good-neighborly relations last year, Hu noted. China and Tajikistan have also supported each other on major and sensitive issues of mutual concern, and cooperated closely under multilateral frameworks including the SCO and the United Nations, he added. During his visit to Tajikistan, President Hu will sum up the current position of bilateral ties and blueprint key areas for future cooperation. Chinese President Hu Jintao (L Front) waves to people as Tajik President Emomali Rakhmon (R Front) greets him at the airport in Tajikistan's capital Dushanbe Aug. 26, 2008. Chinese President Hu Jintao arrived in Dushanbe on Aug. 26 for a state visit and to attend the 8th Shanghai Cooperation Organization (SCO) summit, scheduled for Aug. 28. "With concerted efforts made by both, the visit will be a complete success and Sino-Tajik good-neighborly, friendly and cooperative ties will be uplifted to a new level," he said. Bilateral ties have maintained good momentum in recent years, with the two countries working more closely on trade, transportation, telecommunication, infrastructure, education, culture and sports. China and Tajikistan have also engaged in fruitful cooperation in cracking down on East Turkistan separatists and the "three evil forces" of terrorism, separatism and extremism, as well as in fighting drug trafficking. President Hu will also attend the annual SCO summit in Dushanbeon Thursday. Founded in 2001, the SCO groups China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan. Tajikistan is the second leg of Hu's three-nation tour, which will next take him to Turkmenistan.
BEIJING, Sept. 14 (Xinhua) -- Millions of Chinese have used this year's mid-Autumn Festival, which fell on Sunday, to get together with family and loved ones. This year the Chinese government made the festival a three-day national holiday for the first time. Railways and buses from Chengdu, capital in southwest China's Sichuan Province, carried 180,000 people to quake-battered cities in the province on the first day of the holiday on Saturday, according to the transport authority. "The holiday gave us a break from work to go back home to see my parents in Shifang City, after it was hit by the earthquake in May," said a man surnamed Li, while waiting in a crowded bus terminal in Chengdu. Radio broadcast at the terminal reported travel was difficult, because of repairs on the road or damage from the earthquake. Home-going passengers, many holding packages of mooncakes, stood waiting. Li said the passengers shared a common understanding that the festival's tradition of family values made the trip home more meaningful, and people with painful memories of the disasters cherished such chance. Elsewhere in the country, people preferred to share the holiday feeling at home or on short family trips to tourist spots, instead of going far for travel, according to travel agencies. Leading Chinese travel services like China Travel Service and CCT Travel reported slack booking for Mid-Autumn travels. A staffer at the CCT Travel's office in scenic Guangxi Zhuang Autonomous Region in southwest China said that travel for the week-long National Day holiday in Oct. was booked up. However, the business in the Mid-Autumn holiday was sluggish. Spectators hold placards that read "Welcome" and "Happy Mid-Autumn Day" during a match at the Beijing Olympic Green Tennis Court Sept. 14, 2008. People from around the world are gathering in Beijing and enjoying the Mid-Autumn Festival, a Chinese traditional festival for family reunions which falls on Sept. 14 this year. Liao Wei, manager of the Chongqing Office of China Travel Service, said that the company had planned in vain to open some new routes featuring the Mid-Autumn activities. "We thought of something like a full-moon observing tour of scenic spots, but the market reaction to such ideas was bad," he said. He said that after devastating disasters this year, Chinese people preferred a peaceful and consoling break such as family reunions over long-distance travels. Folk experts held that the Mid-Autumn Festival is second only to the Spring Festival, or China's Lunar New Year, in conveying the core value of the Chinese nation -- family values. A woman takes pictures as her child looks at chrysanthemum at the Shangzhi Park in Harbin, capital of northeast China's Heilongjiang Province, Sept. 14, 2008This was why some law makers like Fan Yi, rector of the Foreign Languages College of Ningbo University in east China's Zhejiang Province, proposed to turn the festival into a national holiday last year. "The Mid-Autumn holiday has the power to ease the home-bound travel spree in the Spring Festival, and help revive traditional values in the modern time," he said. The festival tradition reminds people living far away from their native lands for better education conditions or better-paid jobs to go back to their family roots, he said. The Mid-Autumn Festival, also known as the Moon Festival, falls on the 15th day of August on the lunar calendar. It is celebrated in many Asian countries.