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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."

XIAMEN, Sept. 8 (Xinhua) -- China will further open up to the world and step up its international investment cooperation, Vice Premier Wang Qishan promised here Monday.     Addressing the 12th Xiamen International Trade and Investment Fair in the east Fujian Province, Wang said the country would continue to stick to the national policy of opening up, constantly improve its policies on utilizing foreign investment and investing in foreign countries, and create more space for foreign companies to develop their business in China.     China's reform and opening up policy had significantly transformed the country in the past 30 years, and its accession to the World Trade Organization had further integrated it with the global economy, he said.     Although the country met with severe natural disasters and an unfavorable international economic environment, its coping measures made its national economy stay healthy on the whole, he said, noting it was confident in and capable of overcoming the current difficulties and challenges.     Expounding on improving its policies on utilizing foreign investment and investing in foreign countries, Wang vowed to further improve the country's investment environment including building a service-oriented government, a market of fair competition, a transparent legal environment and stable policy environment.     He also stressed lifting the quality and diversifying the means of utilizing foreign investment, and encouraging domestic enterprises to invest in foreign countries.     The Chinese government had always supported trade and investment liberalization and opposed protectionism in any form, he said, vowing to work with the world to eliminate trade and investment barriers and cope with various difficulties and challenges for global economic prosperity and stability.     Attendants of the forum are from 120 countries and regions and seven international organizations

LANZHOU, Sept. 14 (Xinhua) -- Inspectors had found poisonous chemical in the Sanlu infant formula produced by one of its partner producers in northwest China's Gansu Province, an official said on Sunday.     Two out of the 12 samples randomly selected from the Sanlu milk powder produced by the Haoniu Dairy Co., Ltd. in Jiuquan City had tested positive for melamine, said Xian Hui, vice-governor of Gansu.     "The products of Haoniu have been sealed up," he said.     The test was conducted after the Sanlu Group, a leading Chinese dairy producer based in northern Hebei Province, admitted that it had found some of its baby milk powder products were contaminated with melamine, a chemical raw material strictly forbidden by the country to be used in food processing.     As of Saturday, a total of 432 babies throughout the nation have been sickened with kidney stones after drinking the contaminated milk powder.     Haoniu was founded in 2002 with the registered capital of 51 million yuan (7.45 million U.S. dollars). Its production was in line with the Sanlu standard and its products use the Sanlu trademark.     As of Saturday night, Gansu has reported 102 cases of infant kidney stone caused by the Sanlu milk powder. Two babies have died, Xian said.     The province has so far seized altogether 164,000 packs of Sanlu milk powder.

hina was 249 million U.S. dollars, increasing by 218.4 percent from 2004. China's export to and import from Laos were respectively 164million U.S. dollars and 85 million U.S. dollars, rising by 162.4 percent and 653.8 percent from 2004.     Till the end of 2007, Laos had accumulatively invested 17 million U.S. dollars in China, and the latter's non-financial direct investment accumulatively reached 146 million U.S. dollars.     While China and Laos maintained a good momentum of development on political relations, they also expanded the range of trade and economic cooperation. The cooperation with governments, regional bodies, non-governmental organizations and private sectors have been intensified and deepened, Bouasone said.     The Third GMS Summit, with a theme of "Enhancing Competitiveness Through Greater Connectivity", aims to sustain and deepen economic cooperation and integration efforts among the GMS countries in order to better meet development challenges and realize the common vision of an integrated, harmonious and prosperous subregion.

BEIJING, Aug. 5 (Xinhua) -- As a 6.1-magnitude aftershock hit southwest China's Sichuan Province, the country's quake relief headquarters held its 24th meeting on reconstruction here on Tuesday, reiterating its dual focuses: livelihoods and the environment.     At the meeting presided over by Premier Wen Jiabao, the headquarters urged giving priority to the basic needs of the survivors of the May 12 earthquake in Sichuan Province. It also promised to improve the local environment step by step, ensuring "fast and sound" reconstruction. Chinese Premier Wen Jiabao (back R) speaks at the 24th meeting of the general headquarters of quake relief under the State Council in Beijing, capital of China, on August 5, 2008.It vowed to spend three years ensuring several goals: that every family has a house; every household has an income; every person has insurance, and that the infrastructure, economy and environment all improve.     A special team on reconstruction planning was set up jointly by the national Development and Reform Commission and the governments of the quake-hit Sichuan, Gansu and Shaanxi provinces.     Since May 23, the team has been continuously touring the quake zone and collecting opinions from local officials for a final scheme.     The plan involves 19.87 million people in 51 counties.     The earthquake measuring 6.1 on the Richter Scale occurred in Qingchuan County at 5:49 p.m. on Tuesday, leaving one dead and 23 others injured. On Friday afternoon, an aftershock of the same magnitude hit Pingwu and Beichuan counties in Sichuan, injuring 231 people.