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WUXI: Premier Wen Jiabao has demanded a thorough investigation of the Taihu Lake crisis, which has affected the drinking water supply of about 2 million people. Efforts to protect the lake from further pollution are also to be scrutinized. "The pollution of Taihu Lake has sounded the alarm for us," Wen said in a directive to a symposium held by the State Council here yesterday. Taihu Lake, which was once a scenic attraction famous for its aquatic life, including shrimp, lily and water chestnuts, has been heavily polluted by industrial, agricultural and domestic waste. Wen said efforts had been made to reduce pollution in Taihu Lake in recent years. "But the problem has never been tackled at the root," he added. He asked participants in the symposium, including officials from central and local governments, environmental workers, scholars and researchers, to thoroughly investigate the Taihu Lake crisis so that concrete measures could be drawn up in response. Vice-Premier Zeng Peiyan, who attended the symposium, told governments at all levels to work to prevent algae blooms and ensure the safety of drinking water. Zeng asked local governments to continue collecting the blue-green algae, intensify monitoring of water quality, ensure the water supply and divert more water from the Yangtze River to flush out the pollution. He also asked environmental watchdogs to strengthen supervision and punish factories that discharge pollutants into Taihu Lake. At the meeting, all towns around Taihu were ordered to establish sewage treatment plants. Chemical factories will have to meet a new water emissions standard by the end of June next year. Towns must set up sewage treatment plants and are forbidden from discharging untreated sewage into Taihu Lake or rivers in the Taihu valley. Existing plants must install nitrogen and phosphorus removal facilities before the deadline, according to the plan announced at the meeting. Chemical factories that fail to meet the new water emissions standard risk suspension. They will be shut down permanently if they fail to meet the standard by the end of next June. The new water emission standard for the Taihu area will raise the bar for sulfur dioxide emissions and chemical oxygen demand. China Daily-Xinhua

The central bank raised the reserve requirement ratio for banks by 0.5 percentage point yesterday to mop up excess liquidity resulting from a soaring trade surplus and increased money supply. After the increase, which will take effect on April 16, the ratio will be 10.5 percent for big bankers and 11 percent for smaller lenders. It is the third time this year the People's Bank of China has raised the ratio after similar rises in January and February. The bank reserve requirement refers to deposits banks are required to set aside as a reserve, which reduces their lending ability. "The move is directly aimed at mopping up excess liquidity," Zhao Xijun, finance professor at Renmin University of China, told China Daily, adding the ultimate objective is to maintain stable growth of the economy. In recent months, the trade surplus has expanded rapidly and money supply remained at a high. In the first two months, China's trade surplus amounted to .61 billion, a stunning jump of 230 percent over the same period last year. In February, M1, or cash in circulation and deposits, increased 21 percent year on year, a record high for the past 37 months, indicating increased liquidity pressure. Meanwhile, banks have accumulated 11.1 trillion yuan (.44 trillion) of idle funds that can be used for lending. In January and February, domestic banks extended new loans of 982 billion yuan (7 billion), about 260 billion (.6 billion) more than a year ago. As a result, urban fixed-asset investment has picked up to 23.4 percent year on year in the January-February period from about 20 percent in the fourth quarter of last year, reversing the trend of a slight slowdown since last July. On another front, the consumer price index rose to 2.7 percent, close to the warning line of 3 percent, in February. "The central bank has been closely monitoring the growth trends of the economy and is taking preemptive measures to keep it on the right track," said Zhao. Such a strategy is different from past years, when it seemed to have resorted to rather drastic measures to seek instant regulatory effect, said Zhao. The central bank raised interest rates three times in the past year; the most recent of which came into effect on March 18. Tang Min, chief economist with the Asian Development Bank in China, said yesterday that the adjustment in the reserve requirement ratio may be followed by another hike in the interest rate.

BRUSSELS - Javier Solana, European Union top diplomat, expressed here on Thursday his concern over Taiwanese leaders' comments on the Chinese province's application for UN membership."I have noted with concern the comments made by Taiwan's leadership on October 24 concerning Taiwan's application for UN membership under the name of Taiwan," Solana said in a statement."The EU has a substantial interest in peace and stability in East Asia. It has a particular interest in the continued prosperity and security of Taiwan and in the maintenance of peaceful relations across the Taiwan Strait," he said.    The fundamental position of the EU is that the Taiwan question must be solved peacefully through cross-Strait negotiations between all concerned parties."We have concerns about the current policy of Taiwan's authorities to pursue a referendum on the question of UN membership in the name of Taiwan," Solana said, adding "This concern flows from the EU's conviction that both sides of the Strait should refrain from statements or actions which might raise tension across the Strait and which might be perceived as a unilateral change in the status quo."The proposed referendum would risk making it harder for Taiwan to enjoy the pragmatic participation in the activities of specialized multilateral fora, "when there are clear public interests for this and when statehood is not required." he said"I therefore want to encourage both sides to take further initiatives aimed at promoting dialogue, practical cooperation and confidence-building," he concluded.

China's employers have dual problems on the hiring front as they face the biggest salary increases in Asia needed to attract talent and the region's highest turnover, according to a survey.The findings appeared in the Friday edition of the China Youth Daily.Nearly one-third, or 32 percent, of the employers surveyed planned to raise salaries by at least 20 percent to attract badly-need talent, said the survey by human resources company Hudson.The survey covered employers' first-quarter plans and expectations.Year-end bonuses are expected to rise significantly, with 66 percent of the respondents planning to increase year-end bonuses at least 10 percent and almost one-fourth planning raises of more than 20 percent.But despite significant increases in compensation, staffing turnover has been heavy.Across all industries, 47 percent of companies surveyed had turnover rates of more than 10 percent in the past 12 months, and 13 percent said that the rate was more than 20 percent.China's staff turnover rate was highest in Asia, more than twice that of Japan, the Youth Daily report said. Unsatisfactory compensation and limited career progression were blamed for China's high turnover level.Among respondents, 22 percent agreed that limited career progression was a major cause of high turnover, while 18 percent believed it resulted from dissatisfaction over money.The report predicted a persistent increase in salary levels in China because of limited talent resources.

BEIJING -- Thirty-one provinces, autonomous regions and municipalities on the Chinese mainland had reshuffled local Party committees through internal elections for Party officials within a year ending last June.Moreover, 408 cities, 2,763 counties and 34,976 townships have elected new Party committee leadership from early 2006 to April this year, the Organization Department of the CPC Central Committee said here Thursday.This has made good preparation for the upcoming 17th CPC National Congress.The positions in the new Party committees at the provincial, regional and municipal levels were reduced by 21 compared with previous ones. The positions were cut by 149 at the city level, by 859  at the county level, and by 34,368 at the township level.Meanwhile, the local Party leaders are younger and well educated, particularly at the provincial level. The age of leaders in CPC provincial committees average 52.9 years old, half a year younger than their predecessors, and 91.6 percent of them received college education, 14 percentage points higher than before.The CPC Central Committee has taken a series of measures to make the election in local Party leadership fair and clean, the department said.In 296 townships of 16 provincial-level regions across China, leaders of Party committees were directly voted by CPC members as pilot projects.The ratio between the candidates and the elected officials reached 100:89 in the election at the provincial level and 100:88 to 100:85 at the county-level.The candidates also received strict scrutiny from the Party discipline departments to ensure they are clean from corruption or scandals.A hot line was set to receive tip-off about malpractice and corrupt candidates during the local Party leadership reshuffle.Thus far, 260 officials have been punished for malpractice.