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BEIJING, Sept. 4 (Xinhua) -- China's State Council, or the Cabinet, has ordered government agencies to take immediate actions to rectify the financial abuses exposed by the National Audit Office (NAO) in late August. All units that misused funds were required to report their rectification results to the State Council before Oct. 31, according to an executive meeting of the Cabinet Thursday, which was presided over by Premier Wen Jiabao. The NAO found 29.38 billion yuan (4.32 billion U.S. dollars) worth of "problematic" expenditures after auditing the 2007 state budget spending of 53 ministerial-level departments and 368 of their affiliates. It also found 258 million yuan of disaster relief funds were embezzled and used for administrative expenses or government construction projects. The meeting decided that more central agencies shall make public their budgets. Eleven of them did this last year. The Cabinet also reviewed a draft ordinance complementary for the enforcement of the Labor Contract Law, and decided that further revision has to be done before it could be enacted. The Labor Contract Law took effect on Jan. 1 and has raised concern in China's corporate world because of its enhanced protection of laborers' rights.
BEIJING, July 14 (Xinhua) -- A senior Chinese official visited security checkpoints in Beijing and neighboring Hebei province on Monday, stressing both "strictness" and "convenience" as the watchwords for security forces. "During the Olympics security work, we should not only stick to strictness and details, but also ensure civilized and convenient inspections for people," said Zhou Yongkang, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, to the policemen at the forefront of the checkpoints. Informed of the fact that some buses might be repeatedly checked, Zhou urged Beijing's municipal police bureau and Hebei's provincial police department to cooperate more. Zhou Yongkang (C), member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, inspects Liulihe public security inspection post in Fangshan District, Beijing, July 14, 2008. Zhou inspected public security posts around Beijing on Monday. "Police should improve their methods and processes to avoid repeated checking and shorten the checking duration, ensuring convenience for people," said Zhou. Passengers riding the Beijing metro and major bus routes began to undergo strict security checks at the end of June ahead of the Olympics, according to the Beijing police. Meanwhile, the inspection process was going smoothly in the Olympic venues in Shanghai, Tianjin, Shenyang, Qingdao and Qinhuangdao. Local quality inspection authorities had organized emergency and rescue drills at venues in Beijing, Tianjin and Hebei Province. In addition, Zhou urged officials with the police departments to take care of the policemen's daily life and make reasonable working schedules to ensure their hearty spirits. "As the security barrier for Beijing, all the neighboring provinces, municipalities and autonomous regions are shouldering tough missions in the Olympic security work," he said. With the games just around the corner, land forces of the People's Liberation Army based in Beijing and three neighboring military area commands would help safeguard the Games, according to Tian Yixiang, an official with the Security Command Center for the Games of the 29th Olympiad. "We must guarantee Beijing's safety by ensuring the whole country's stability," said Zhou.
BEIJING, July 2 (Xinhua) -- China senior political advisors gathered here Wednesday, to learn about the country's economic situation and developments in the earthquake relief and reconstruction campaign. Jia Qinglin, chairman of the CPPCC National Committee and member of the Standing Committee of the Communist Party of China (CPC) Central Committee Political Bureau, presided over the inaugural session of the second meeting of the Standing Committee of the 11th CPPCC National Committee. Jia praised CPPCC members for their participation in the earthquake relief campaign. The relief situation remained serious and the tasks were still very heavy, Jia said. The CPPCC was responsible and duty-bound to contribute to the relief and reconstruction work. Jia Qinglin (C), chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), presides over the second session of the Standing Committe of the 11th CPPCC national committee in Beijing July 2, 2008. He encouraged the senior advisors to speak their views at the meeting, to provide the Party Central Committee and the State Council with more valuable comments and proposals. Chinese Vice Premier Zhang Dejiang (C) speaks in the second session of the Standing Committe of the 11th national committee of the Chinese People's Political Consultative Conference (CPPCC) in Beijing July 2, 2008.Vice Premier Zhang Dejiang, in a report on the economic situation, said China had experienced the most austere economic and social challenges. China had maintained stable and relatively fast economic development, thanks to the timely decisions and arrangements by the Party Central Committee and the State Council, as well as the work by local Party committees and governments, said Zhang, also a member of the Political Bureau of the CPC Central Committee. The country would continue earthquake relief and reconstruction while firmly adhering to promoting economic and social development, so as to achieve social harmony and stability. Zhang hailed the reform of state-owned enterprises in the past 30 years, and pledged to speed up the reform. He said China had entered into a crucial stage in developing its social security system, which required increased investment to "allow everyone enjoy fundamental living security, while trying hard to reach the goal of enabling everyone to enjoy schooling, find paid jobs, get medical services, retire on a pension, and live in decent housing". The meeting is scheduled to last for four days.
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, 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.