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BEIJING, June 18 (Xinhua) -- China's political advisors Thursday underlined the importance of a proactive fiscal policy and a more active employment policy to cope with the global downturn. They offered their advice as the standing committee of the 11th Chinese People's Political Consultative Conference (CPPCC) National Committee continued its sixth meeting, which started here Tuesday. The committee members warned of difficulties ahead, citing the worsening impact of the global slowdown, and called for more efforts from all sides to combat the situation. They also stressed the importance of a moderately easy monetary policy, increased investment in improving living standards, and expanded coverage of social security. Jia Qinglin, chairman of the National Committee of the CPPCC, was present at the meeting.
BEIJING, June 22 (Xinhua) -- China's top legislature Monday began to review the first draft law on diplomatic personnel which intended to standardize management of diplomats in foreign countries and international organizations and improve their well-beings. The draft, submitted by the Ministry of Foreign Affairs to the ninth session of the Standing Committee of the 11th National People's Congress (NPC) for a first reading, said the government should establish a floating mechanism to raise the diplomats' wages and other benefits. China has about 5,000 diplomats serving in more than 250 embassies, consulates general and other overseas organizations who were sent by 32 domestic agencies of the central government. The draft law will be the first of its kind written to regulate Chinese government agents working in the 171 countries that China so far has diplomatic ties with. If a diplomat's spouse works for the government, a public institution, a state-run enterprise or is an active-duty military member and decides to move abroad with the diplomatic staffer, he or she could not be dismissed or face any charges from their employer, it said. The draft only applies to overseas employees with diplomatic rank, not translators, messengers, chefs, drivers and other noncommissioned staff. It also mandates that diplomats intending to marry must have their prospective spouses vetted, and that divorces must be promptly reported. If a diplomatic spouse acquires a foreign nationality or permanent residence permit, the diplomat will be called back before the overseas tenure ends, the draft said. Diplomats' domestic agencies would also have the power to decide if the spouse could accompany them abroad or whether those who remain in China would have government-paid visits to the diplomats.
URUMQI, July 14 (Xinhua) -- Abdul'ahat Abdulrixit, vice chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), said Tuesday that ethnic unity was the "basic benefit" for all the people in Xinjiang. "Ethnic unity is the basic benefit for the 21 million people of various ethnic groups in Xinjiang... and these people have a long tradition of loving and supporting each other," Abdul'ahat Abdulrixit told Xinhua in an interview in Urumqi Tuesday. Abdul'ahat Abdulrixit, an ethnic Uygur, was born in 1942 in northwest China's Xinjiang Uygur Autonomous Region. He joined the Communist Party of China (CPC) in 1960 and was elected CPPCC National Committee vice chairman in 2008. Abdul'ahat Abdulrixit (L), vice chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), receives an exclusive interview with Xinhua News Agency in Urumqi, northwest China's Xinjiang Uygur Autonomous Region, on July 14, 2009. "Ethnic unity is the basic benefit for the 21 million people of various ethnic groups in Xinjiang... and these people have a long tradition of loving and supporting each other," Abdul'ahat Abdulrixit told Xinhua here on Tuesday "No matter whether in war or peace, people of Han and minority groups always had a strong emotional tie and they could not be separated from each other," he said. Abdul'ahat Abdulrixit cited many heroic stories during the July5 riot in which people from Han and other ethnic groups risked their lives to save people from the violence. According to media reports, an 81-year-old Uygur old man risked his life to save 18 people, and a Han boy named Li Huan saved more than 10 people and even captured a rioter. "The loving relationship among us has gone through all kinds of weather and will never be destroyed by these ethnic separatists," Abdul'ahat Abdulrixit said. He condemned the riot as an "extremely outrageous" crime organized by people who intentionally wanted to arouse ethnic conflicts and disturb social stability. The unrest which occurred on July 5 in Urumqi, capital of Xinjiang, resulted in at least 184 deaths and left 1,680 injured. Abdul'ahat Abdulrixit said that since the founding of the New China, health care, education, science and technology in Xinjiang had developed rapidly.
TASHKENT, June 27 (Xinhua) -- Visiting Chinese Vice Premier Li Keqiang on Saturday called for closer economic ties between China and Uzbekistan while meeting with Uzbek First Deputy Prime Minister Rustam Azimov. Li said China and Uzbekistan have deepened their pragmatic cooperation and achieved a lot in this regard in recent years. Besides growing trade, bilateral cooperation in areas like investment and projects outsourcing also made rapid progress, he noted, adding the two sides have improved the quality and increased the level of bilateral, pragmatic cooperation with joint projects being carried out in energy, mining, transportation, agriculture, telecom, machinery, petrochemical and other sectors. Chinese Vice Premier Li Keqiang (R) meets with Uzbekistan First Deputy Prime Minister Rustam Azimov in Tashkent, Uzbekistan, on June 27, 2009 The Chinese leader called on the two sides to capitalize on the progress of bilateral cooperation, and take full advantage of the fact that the two economies are highly complementary to each other and the two countries enjoy geographical closeness. Chinese Vice Premier Li Keqiang (5th L, rear) and Uzbekistan First Deputy Prime Minister Rustam Azimov (6th L, rear) attend the signing ceremony of cooperation agreements between the two countries, in Tashkent, Uzbekistan, on June 27, 2009He specifically said the two countries should continue to expand bilateral trade and two-way investment and spare no effort to carry out major joint infrastructure projects. Meanwhile, the two sides should enhance cooperation in other areas and move faster on carrying out aid and loans initiatives to achieve mutually-beneficial and steady development of both economies, he added. On broader bilateral relations, Li said the relationship between China and Uzbekistan has been developing smoothly as political trust between the two sides continues to deepen and cooperation in specific areas like economy, energy, transportation and security grows stronger day by day. He noted China and Uzbekistan have supported each other on critical issues and worked closely within multilateral frameworks like the United Nations and the Shanghai Cooperation Organization, which has helped both sides safeguard their common interests and has had a positive impact on regional and world peace and stability. Chinese President Hu Jintao met with his Uzbek counterpart Islam Karimov during the 2008 Summer Olympic Games in Beijing, and also on the sidelines of the summit of the Shanghai Cooperation Organization countries held in the Russian city of Yekaterinburg earlier this month. Chinese Premier Wen Jiabao paid his first official visit to Uzbekistan in November 2007 after attending a meeting of the prime ministers of the Shanghai Cooperation Organization countries held in the Uzbek capital Tashkent. Li said Chinese and Uzbek leaders had an in-depth exchange of views on deepening pragmatic bilateral cooperation and reached a lot of important agreements during their meetings. He said the primary goal of his current visit is to carry out specific programs of pragmatic cooperation between China and Uzbekistan according to the consensus reached by the top leaders of the two sides with the aim of bringing more concrete benefits to the two peoples. On his part, Azimov said the leaders and senior officials of Uzbekistan and China have met on a regular basis to build a solid base for further developing bilateral relations. He described Li's visit to the country as an important step toward putting into practice the consensus reached by the leaders of the two countries. He said Uzbekistan and China have made remarkable progress on energy cooperation in recent years, which reflects a new dimension of bilateral economic cooperation and will benefit both economies. The Uzbek official said his country has been closely watching the economic development of China and would like to learn from China's successful experience. He also praised the measures taken by the Chinese government to tackle the global financial crisis. After the meeting, the two attended the signing ceremony of 11 government or corporate bilateral agreements on cooperation in such areas as economy, tourism and health
BEIJING, May 3 (Xinhua) -- Decoupling from the world, and the economic downturn much of it is experiencing, has proven impossible for China. But its resilience is receiving more recognition, with many leading financial institutions upgrading their 2009 growth forecasts since mid-April. The adjustments for gross domestic product (GDP) growth, ranging from 0.5 to 2.3 percentage points, were based on signs of a turnaround in the first quarter. These indicators included stronger-than-expected real GDP growth, recovering property investment, a pick-up in power consumption and a surge in bank lending. Merrill Lynch & Co. said it expected China's GDP to grow 7.2 percent in the second quarter and 8 percent this year, while Goldman Sachs raised its projection from 6 percent to 8.3 percent, the most optimistic forecast so far. Other forecasts include UBS, which raised its estimate by 0.5 point to 7 percent and CLSA Asia-Pacific, which lifted its outlook by 1.5 point to 7 percent. China's policymakers can take heart from these forecasts. Every upward revision, big or small, given the global economic slowdown, might point to a better chance for the nation to achieve its 8-percent growth target. That level of growth is considered necessary to raise living standards while maintaining social stability. But there's still the question of whether rapid growth is sustainable. Some analysts believe it isn't unless China can rebalance its economy and achieve higher efficiency, lower environmental costs and a more reasonable balance among investment, trade and consumption. QUANTITY OR QUALITY? In an interview with Xinhua, Stephen Roach, chairman of Morgan Stanley Asia, urged Chinese authorities to get more serious about stimulating private consumption because the global economy remains "pretty weak" and might only achieve a weak recovery. "China has responded to the crisis the way it has always responded to global problems. That is, using proactive fiscal stimulus mainly in the infrastructure area to provide temporary support in the downturn until the global economy comes back. It worked in the 1997 Asian financial crisis and the 2000-2001 mild recession. But this is a different sort of problem," said Roach. "Once the stimulus wears off and if there is no follow-through, the Chinese economy will weaken again. I don't think exports will recover in the weak global economy." Domestic economists voice similar worries, saying that the speed of growth doesn't matter as much as the quality. Liu Shangxi, deputy dean of the Research Institute for Fiscal Science at the Ministry of Finance, said that the 6.1-percent year-on-year growth in the first quarter had been "fairly good" for China. But, he said, "sometimes, it's worth slowing down a bit to have the economy move more stably." Wang Xiaoguang, an economist with the National Development and Reform Commission (NDRC), the chief planning agency. said that the government's annual growth target had become mostly symbolic. For five years in a row, the target was 8 percent, and for five years in a row, the growth rate overshot the target. Wang said the government had faced a dilemma: a cut in the target might undermine public confidence while a rise might tempt local governments to over-invest to meet a high growth target. The turnaround signs mostly reflected the impact of the 4-trillion-yuan (586 billion U.S. dollars) stimulus package. Meanwhile, retail sales still trailed investment in contributing to growth. Local economists warned that the economy remained unbalanced and vulnerable. "Historical records show that adjustments in the Chinese economy would take two to three years, on average. Seven months have passed since the impact of the global financial crisis began to tell on the local economy. "With a turnaround in sight, recovery might come earlier than expected but there are still risks of a further slowdown," Chen Dongqi, deputy chief of the Macro-Economic Research Institute under the NDRC, told a business development forum in Guangdong in late April. BUYING CURE It's widely accepted among economists that China should boost domestic private consumption by leading individuals to buy more and save less. The key question is: how? "Two big programs" Roach advocates call for doubling the investment in social security immediately to 150 billion U.S. dollars and establishing a goal of raising consumption as a share of the economy from 36 percent to 50 percent within five years. "What I think is missing here is the social safety net, social security pension and unemployment insurance. Because of the absence of the safety net, China has seen a high level of precautionary saving," he said. Roach suggested that China develop a private pension system in particular so total employee compensation could rise in tandem with productivity. "Chinese companies need to partner with their workers and provide medical care [and] retirement investing for their workforce. Chinese workers' total pay package should have both wages and benefits," he said. Liu agreed that the primary task in expanding consumption was to raise incomes. "Securing the legitimate interests of workers is particularly significant when the economy slumps. It would be like drinking poison to quench one's thirst if businesses sought to expand corporate earnings at the cost of workers' pay and benefits," he said. Low labor costs and massive capacity have propped up China's prosperity over the past decades. But the proportion of wages to national income has been on a long decline since the 1990s. Between 2002 and 2006 alone, economists estimate the figure dropped from 62.1 percent to 57.1 percent. Meanwhile, the contribution of consumption to GDP growth fell from 43.6 percent to 38.9 percent. "A more meaningful index to judge the sustainability of China's economic growth would be the proportion of wages to national income," Liu said. "If this ratio did not rise, people would remain poor, and thus expanding consumption would be empty talk." Chinese are far from wealthy. Only 4 percent of the workforce, and just 10 percent of the urban workforce, earn more than 2,000 yuan a month, the threshold for individual income tax. As Chinese residents hold 2.43 trillion yuan in aggregate deposits, economists say one immediate way to boost consumption would be to stabilize spending on staple property -- including housing and automobiles -- and support tourism and cultural activities. "People spend much of their money on housing and food. The government should encourage people to entertain themselves more," Wang said. CHINA 'NO LOCOMOTIVE' Although China might be the first major economy to recover from the downturn, economists disagree on when China will return to sustained high growth. Morgan Stanley, for example, has forecast a firm recovery by mid-year, but said sustainable growth through 2010 would still hinge on what happens in other countries. "China will be stronger. But will that strength be enough to allow others to follow in its footsteps? I don't think so," said Roach. "Most of China's resilience comes from infrastructure building, roads, property consumption ... [this] won't have an impact on the United States and Europe. This resilience is only temporary while its stimulus is local rather than global." Central bank governor Zhou Xiaochuan also warned in late April during World Bank-IMF meetings in Washington that the rebound in China's economy had to be consolidated. He said conditions in China would permit rapid economic development again, once macroeconomic policies such as the stimulus plan took effect. Challenging internal and external conditions, he said, included continuously shrinking external demand, a relatively large decline in exports, overcapacity in some industries, falling government revenue and lingering employment pressure. As China emerges from the shadow of the downturn, together with many of its Western partners, the world is closely watching the socialist market economy that it is still trying to develop. It was interesting to see that there was much "the ideologically-constrained West" could learn from China, just as there was much China could learn from the West, said Roach. "China has gone slow in many areas, especially in the opening up of its financial market. But China made the right choice," he said. "Focusing on stability is a huge plus for China. But the nation must be vigilant in its financial policies, especially monetary and regulatory policies, and not allow asset bubbles and financial innovations it doesn't understand," said Roach.