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BEIJING, Oct. 26 (Xinhua) -- China's economy was on sound track but prospects were complicated by the world economic slowdown, said Zhou Xiaochuan, governor of China's central bank, on Sunday.     In a report Zhou made to the fifth session of the Standing Committee of the 11th National People's Congress (NPC), he said the country's economy was developing as expected, but the world economic slowdown added uncertainties to its prospect.     "Our economy is highly reliant on overseas demand. Slacking exports resulted from the global economic slowdown would have a negative impact on the economy," he said.     He suggested the country need to be cautious in adjusting policies because there are both possibilities of cost-driven price rises and possibilities of continuous price falls in the future.     "Currently, inflation pressure mainly comes from rising cost," he said.     He said in the world, more and more economies began to shift their policies from curbing inflation to boosting economic developments amid a world economic recession. The international commodity price is expected to enter a new round of rise.     According to him, the PBOC will adopt flexible and prudent macro-control policies to strive for the stability of the country's financial sectors and promote sound and rapid economic growth.     Zhou said efforts would go to other specific fields, including establishing financial risk monitoring mechanism, enhancing cooperation among domestic and overseas financial organs, and ensuring liquidity in the banking system.     He also urged strengthening foreign exchange management through enhancing cross-border capital flow management and supervision, in a bid to avoid losses and risk caused by speculation activities.     The central bank would keep a close look over the real estate sector and improve financial services in this sector, he added.     Zhou said that the impact of the world financial crisis on China's economy cannot be underestimated. However, the country's economic situation is sound as a whole, and is capable to effectively resist the external impact.     China's financial sectors have grown stronger after years of development. The profit-earning and risk-resistance abilities have been greatly improved, market liquidity is sufficient, and the financial system is sound and safe, he explained.     The fifth session of the Standing Committee of the 11th National People's Congress (NPC) opened its second plenary meeting Sunday morning. Wu Bangguo, chairman of the Standing Committee of the NPC, attended the meeting.

 BEIJING, Jan. 7 (Xinhua) -- China hopes to work with the United States to maintain a healthy and stable relationship which benefits the people of both countries and the world, said Chinese State Councilor Dai Bingguo on Wednesday.     "Sino-U.S. relations are at a crucial point linking the past to the future," Dai told the U.S. Deputy Secretary of State John D. Negroponte, who was here to honor the 30th anniversary of Sino-U.S. relations.     Dai said China and the U.S. shared common interests and consolidated a strategic foundation. This paved the way for further development of the relationship.     He summarized four achievements in Sino-U.S. relations made during the Bush administration.     --The two countries confirmed the relationship as stakeholders and constructive cooperators.     --The two heads of state maintained frequent contacts.     --High-level strategic dialogues were institutionalized to promote mutual trust and cooperation.     --Cooperation in all areas deepened such as major international and regional issues.     "Sino-U.S. relations have made remarkable progress over the past three decades and this linked the two countries closely," Dai said.     Negroponte said both the U.S. and China were important countries in the world and needed more dialogue and cooperation to safeguard global security and stability.     The strategic dialogue and the strategic and economic dialogue were two effective mechanisms and should be continued, he said.

BEIJING, Oct. 31 (Xinhua) -- Chinese shares dropped 1.97 percent on Friday, the month's last trading day.     The benchmark Shanghai Composite Index lost 1.97 percent, or 34.82 points, to close at 1,728.79. The Shenzhen index was down 1.19 percent, or 70.33 points, to close at 5,839.33 points.     The combined turnover was 35.23 billion yuan (5.03 billion U.S.dollars), compared with 49.35 billion yuan on the previous trading day. Losses outnumbered gains by 656 to 199 in Shanghai and 576 to151 in Shenzhen.     Almost all sectors fell except industries related to aircraft making after the Commercial Aircraft Corporation of China Ltd. (CACC) announced Chinese indigenous regional jets would be sold to the United States, analysts said. CACC is not a publicly traded company.     Coal companies suffered the most losses. Kailuan Clean Coal Co.lost 7.21 percent to 10.3 yuan. Taiyuan Coal Gasification Company fell 4.34 percent to 7.50 yuan.     "I don't think the fall was related to recent mine accidents. It was a reflection of diminishing global energy demand," said Alex Xue, analyst with JL McGregor & Company.     The finance sector also dropped by an average of 3 percent. CITIC securities lost 2.46 percent to 17.84 yuan. Bank of Communications fell 4.20 percent to 4.33 yuan.     According to estimates from Friday's China Securities News, third-quarter profits of the country's 1,466 listed companies would fall 10.17 percent from the same period a year ago and 18.41 percent from the previous month to 206.09 billion yuan.     Operating net cash flow fell 51.75 percent to 827.4 billion yuan in the first three quarters. Analysts said rising material costs and weakening demand led to slumping profits.     The country's industrial output value growth slowed to 11.4 percent in September, the lowest rate since April 2002, the National Development and Reform Commission said on Thursday.     Despite the latest rate cut, which was viewed as helpful to stabilizing the stock market, analysts said the market could possibly continue falling. The long-term affects from the rate cut are yet to been seen.

SHUIFU, Yunnan, Dec. 28 (Xinhua) -- The Jinsha River in south China was blocked on Sunday to make way for construction of a new hydropower project on the upper reaches of the Yangtze River.     At a cost of 43.4 billion yuan (about 6.3 billion U.S. dollars), the Xiangjiaba Hydropower Project is expected to be completed by 2015. It will be able to generate 30.7 billion kw hours of electricity a year.     "Electricity generated by hydropower stations will mainly be sold to China's eastern, southern and central regions," said Li Yong'an, general manager of the China Yangtze River Three Gorges Project Development Corporation. "Sichuan and Yunnan provinces will also benefit from it." Workers cheer for the damming of the Jinsha River in the construction of the Xiangjiaba Hydropower Station which is the third largest of its kind in China.     In addition to providing power, the project will play a role in flood control and farmland irrigation.     About 125,100 people from three counties of Yunnan Province and three counties of Sichuan Province have been resettled to make way for the project.     The Xiangjiaba project is one of a series of hydropower plants China plans to build on the Jinsha River to supply electricity to its economically more developed coastal regions.     The 2,290-kilometer-long Jinsha River, a tributary of Yangtze River, originates in Tanggula Range and flows through Qinghai, Tibet, Yunnan, and Sichuan.     Water is mostly stored in the river's middle and lower reaches where China plans to build 12 hydropower stations to share a 59.08- million-kilowatts installed capacity. Photo taken on Dec. 28, 2008 shows the last phase of damming the Jinsha River in the construction of the Xiangjiaba Hydropower Station which is the third largest of its kind in China.

BEIJING, Jan. 24 (Xinhua) -- Chinese President Hu Jintao urged the promotion of stable agricultural and rural economic development and said issues concerning agriculture, countryside and farmers should continue to be the top priority of the Communist Party of China (CPC).     Hu, also General Secretary of the CPC Central Committee, made the remarks during a meeting of the Political Bureau of the CPC Central Committee on Friday. Attendees at the meeting studied the means to promote agricultural modernization with Chinese characteristics.     Maintaining stable agricultural and rural economic development was more important under current circumstance, Hu said.     Agricultural production was the basic support to stimulate economic growth; rural areas had the potential to boost domestic demand; and to improve farmers' living standards was a major task and also a difficult job, he said.     He called for more efforts on three major tasks of agricultural work.     First, greater importance should be laid on ensuring the country's grain security and supplies of major agricultural products.     The country should stick to the most strict system to protect and save farming land as well as stabilize the grain sowing area, Hu said.     He said the government should increase subsidies for agricultural production and continue to raise the minimum state purchasing prices for grain.     In the latest move to protect farmers' interests and boost grain output, the National Development and Reform Commission said Saturday it would raise the minimum state purchasing prices for rice in major rice-producing areas by as much as 16.9 percent this year.     Hu also stressed the quality supervision and monitoring of agricultural products to ensure food safety.     Second, more importance should be attached to promote rural infrastructure construction as well as improve social welfare and living standard of farmers, he said.     He urged increasing capital input in infrastructure construction and rural social welfare and said greater efforts should be made to improve rural education, medical services and poverty alleviation.     Third, an array of measures should be taken to promote the growth of farmers' income and expand the rural market, Hu said.     He urged more efforts to discover new measures and channels to boost farmers' income and improve the commodity circulation network in rural areas.     The program of subsidized home appliance, autos and motorcycles should be promoted, he said.     He also urged quality authorities to make best efforts to protect farmers' interests and avoid fake and shabby products flowing in to rural markets.     Speaking of rural workers employment, Hu said governments should encourage enterprises to be more responsible and employ more rural workers.     The governments could also provide more job opportunities for rural workers by letting them work on the infrastructure projects amid the country's efforts to boost domestic demand, he said.     More support should be given to migrant workers who returned because of employment difficulty in cities and encourage them to start their own businesses, Hu said.     He also suggested Party leaders and governments at all levels should apply the scientific outlook on development to their work to deal with the emerging problems and challenges facing agricultural and rural economic development, and contribute more to promoting rural reform, development and stability.