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BEIJING - China purchased at least 400 billion yuan (.6 billion) of goods and services in 2007, a new high compared to the 368.1 billion yuan recorded a year earlier, preliminary figures from the Ministry of Finance (MOF) revealed.Assistant Financial Minister Zhang Tong described the expansion as "outstanding" given the procurement stood at only 100 billion yuan in 2002, the first year the mechanism was introduced.The past five years have also witnessed an increasingly diversified government consumption that expanded from solely commodities in the beginning to services and engineering, he said. With 13,000 people engaged in purchasing nationwide, China has twice revised its procurement list to include 18 categories encompassing nearly 4,770 items.Energy-saving products accounted for a large percentage of the newly-added items. To lead by example, the government has pledged to reduce energy consumption for every 10,000 yuan of gross domestic product by 20 percent and pollutant emissions by 10 percent for the 2006-2010 period.This year, student textbooks for primary and junior high schools, medicine, farm machinery and other items to distribute to the needy free of charge or at inexpensive prices will be added to the list, Financial Minister Xie Xuren told a recent work meeting for 2008.Under a MOF directive promulgated last month, government procurement will favor independent innovation products starting this year, a practice, experts said, the United States adopted in the late 1950s to foster domestic high-tech industries, including aeronautic and astronautic technology, computing, semiconductors and integrated circuits.Qinghua University law professor Yu An said the move would provide good incentives for domestic firms to speed up technical innovation.MOF statistics revealed the procurement had spared an aggregate expenditure of at least 180 billion yuan between 2002 and 2007.The benefits, however, didn't drown out grumbles from the Heilongjiang provincial chapter of the Revolutionary Committee of the Chinese Kuomintang, one of the country's eight political parties, beside the ruling Communist Party of China (CPC).At a meeting last month, the chapter held transparency in government procurement should be enhanced as some products were found to be overpriced, of unsatisfactory quality or without effective after-sales service.Tendering companies must be subject to real-time supervision to avoid bribery and kickbacks. Perpetrating firms must be blacklisted and banned from the procurement, while governmental departments must submit their accounting ledgers for regular auditing scrutiny, they said.

BEIJING, March 27 (Xinhua) -- China's economy would moderate but remain robust in 2008 with a growth rate of 10.7 percent, providing a cushion against the expected international downturn, according to a forecast issued by the United Nations commission here on Thursday.     "Investment continues to be the main driver of growth, remaining resilient despite government cooling measures and with support from low real interest rates," said a report released by the UN Economic and Social Commission for Asia and the Pacific (UNESCAP).     "A slowdown in exports and the country's efforts to cool the economy are the main reasons for the moderation," it said.     Other factors expected to underpin China's growth include domestic demand, increasing spending power of rural consumers and rising consumption through higher government spending on social welfare.     Official statistics show China's gross domestic product growth accelerated to 11.4 percent in 2007, the fastest for 13 years.     The report said the U.S. sub-prime mortgage crisis is not expected to have a strong impact on growth in China.     "In a worst case scenario where the U.S. economy goes into recession, the impact on China will not be as great as on other Asia-Pacific countries. Due to its blistering pace, China's growth will remain resilient, but will slow," said Shuvojit Banerjee, a senior expert with the UNESCAP.     According to the report, China's increasing exports to the European Union are expected to compensate for a steady fall in exports to the United States, China's second largest export market. China has also witnessed a boom in trade with Africa.     It said Chinese and other Asia-Pacific investors are playing a key role in supporting developed countries through the turmoil. Sovereign wealth funds and state investment institutions from the region have bolstered weakened banking sectors in the United States and the Europe.     The report said China is facing an increasing challenge from inflation. The chief inflationary concerns lie in higher international oil and food prices. "Rising food prices are a bigger inflationary concern than oil prices because food accounts for a far higher proportion of consumer spending. Food price inflation particularly hits low income households."     The report also warned that the fast growth is coming at an increasing cost to the environment. It said the destabilizing effect of growth on the environment is becoming more apparent. Air pollution, especially in large cities, is increasing the incidence of lung disease.

The government will get tough on those involved in illegal activities and speculation to cool the country's booming property market, a leading construction official said Thursday."We are in the middle of a campaign to regulate the property market and will crack down hard on anyone engaged in illegitimate activities such as stockpiling land and bidding up prices," Qi Ji, vice-minister of construction said at a press conference."We will expose and punish unscrupulous developers and do everything we can to prevent price hikes driven by non-market factors," he said.Qi said the government will also introduce differentiated tax and credit policies to deter people from buying property for investment purposes and control the demand for large apartments.Citing Beijing as an example, Qi said one of the key factors behind the skyrocketing prices was the influx of buyers from outside the city."Figures show more than a third of the commodity houses in Beijing were bought by people from outside the city," he said.And the figure is more than 50 percent for high-end properties in central areas, he said.The situation has led to an imbalance between supply and demand in these areas and prices are soaring, Qi said.House prices in the capital showed a year-on-year increase of 11.6 percent last month, the highest this year.Qi said governments must put greater emphasis on the development of low and middle-priced housing and small to medium-sized apartments to stabilize housing prices.In an effort to help ease the housing problems of low-income families in urban areas, the State Council recently rolled out a series of policies including the establishment of a low-rent system, the construction of more affordable homes and a large-scale program to renovate shantytowns.Qi said 10 million low-income families nationwide have housing problems, most concerning a lack of living space of less than 10 sq m per person."They cannot afford houses on the open market, which is why governments must help them," he said.

The weakening global economic environment will slow down growth in Asia and the Pacific, too, this year, but China, India and Japan are expected to keep up the momentum in the region, says the Economic and Social Survey of Asia-Pacific 2007. The three economies contribute more than 60 percent of the region's GDP and close to 45 percent of its imports, creating considerable opportunities for the whole region, says the survey, to be released today by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). Developing economies in the region grew at 7.9 percent in 2006, up from 7.6 percent in 2005. But their economic growth is projected to slow down to 7.4 percent this year. The decline is mainly because of the unfavorable external environment, including the slowing down of the US economy and falling demand for electronics across the world, says UNESCAP Executive Secretary Kim Hak-Su in a recorded video on the commission's website. The survey shows investment continues to grow in China, while investment and consumption posted healthy gains in the two special administrative regions of Hong Kong and Macao. The survey, however, warns against several downside risks in the region, such as a possible oil price hike, abrupt cooling of the US housing market, vulnerability of the currency, global imbalances and reversal of the Japanese economy after its recovery. To ensure better long-term growth in the region, the survey suggests Asian economies monitor the vulnerability of the currency and boost domestic demand through private investment.