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The growth of the services sector should be accelerated and opened wider to private and foreign investors, the State Council has said. Market access for such sectors as telecommunications, railways and civil aviation - by far largely State-owned - will be increased and more competition encouraged to diversify investment, the Cabinet said in a document released yesterday. The country will establish an "open, fair and rule-based" market access system, according to the document, which urged local governments and departments to encourage foreign investment and improve the legal framework in the sector. Private investors are encouraged to "raise the proportion of non-State output in the national services industry". No domain should be off-limits as long as the law does not forbid the entry of non-State investors, the document said. The State Council said the services trade should be encouraged to change the foreign trade growth pattern, which comprises mainly exports of low-end manufactured goods. Some local governments were criticized for tilting toward heavy industries and ignoring the services sector, which made up 40.2 percent of China's gross domestic product (GDP) last year. It generally accounts for about 70 percent in developed economies.The sector is important for China as it makes efforts to change its economic growth pattern, reduce consumption of energy and resources and create jobs, the document said. Given those benefits, "developing the services sector is imperative for China," Liu Xiahui, an economist with the Chinese Academy of Social Sciences, told China Daily. "But for the moment, it still has to rely on the industrial sector to generate more tax revenues and achieve a high rate of economic growth." Liu said while the general services industry, such as the catering trade, has grown fast, many regions are not developed enough to accommodate high-end value-added services, such as finance. "We cannot ignore our economic reality." "But I do hope the country can make bigger strides in developing the services sector, which is in line with China's future needs," Liu added. As one of the steps, the State Council urged more input into sectors oriented toward people's livelihood, such as real estate, non-State nursing homes for the aged and culture. The cabinet put special emphasis on the services industry in rural areas, urging an increase in farmers' incomes and a relaxation of the urban household registration system.

NANJING -- Police in Nanjing, East China's Jiangsu Province, have nabbed 47 suspects over human trafficking and rescued 40 babies, said senior officers with the Nanjing railway police office on Friday.A group of four women, each holding a newborn baby in arms but never breast-feeding the infants, arouse police suspicion on May 24 on a train from Kunming, capital of Southwest China's Yunnan Province, to Nanjing and were questioned.The women, including one identified as Lang Chunyan from Tancheng County of East China's Shandong Province, confessed that the babies were bought from Yunnan and they had been doing so with the help of two other suspects, Dao Xiufen and Ding Fachang, since 2005. While Lang's husband, Shen Yuzhou, was in charge of selling babies with the help of 10 human traders in Shandong.Lang also confessed that they usually buy a baby girl at 1,500 yuan (US0) but sell it for 8,000 yuan, while a baby boy usually costs them 8,000 yuan and can fetch 20,000 yuan for them.The Nanjing railway police set up a special team of more than 10 policemen to investigate the case.The team arrived in Yunnan on May 27 and arrested Dao, Ding and seven other suspects. Shen was later arrested in Shandong.Investigations found that the gang of human traders headed by Shen and Lang have bought 27 newborn babies in Yunnan during 16 trips and then sold them in Shandong.Forty out of more than 60 babies who were trafficked by the gang have been rescued by police so far, while police were trying to find the others.

Beijing has fined more than 50 people for spitting in the past week's holiday, a report said on Monday, as Beijing steps up a campaign to "civilize" the city before the 2008 Olympics. Officials also handed out more than 10,000 bags to tourists to try to keep them from littering as inspection teams fanned out across the city's tourist sites during the week-long Labor Day holiday, when hundreds of millions take to the roads. "The Olympics are coming, and we don't want to get disgraced," Xinhua news agency quoted travel guide Huang Xiaohui as saying. Guides had been instructed to remind tourists not to spit, litter or jump queues, and lead an "etiquette discussion" at the end of the tour, the report said, citing a circular issued by the China National Tourism Administration. China also has an official etiquette watchdog, the Spiritual Civilization Steering Committee of the Chinese Communist Party, which aims to curb uncivilized behavior. Chinese officials have expressed concern about rudeness and public spitting habits and launched campaigns to cultivate courtesy and civility, keen to ensure nothing mars Beijing's image during the Olympic Games. Among the initiatives, the 11th day of every month is now "voluntarily wait in line" day, designed to stamp out pushing and shoving in favor of orderly queues.

Visiting Chinese Premier Wen Jiabao (L) is greeted by Japanese Prime Minister Shinzo Abe upon his arrival at Abe's official residence in Tokyo April 11, 2007. Wen arrived in Japan on Wednesday. [Reuters]TOKYO: Premier Wen Jiabao and his Japanese counterpart Shinzo Abe Wednesday agreed on concrete steps to build mutually beneficial strategic ties. Wen's three-day trip, the first by a Chinese premier in nearly seven years, comes six months after Abe went to Beijing to mend ties chilled by his predecessor Junichiro Koizumi, who repeatedly visited Yasukuni Shrine that honors Japan's war criminals of World War II. Yesterday, the two leaders declared their firm intention to move forward on rebuilding relations, signed agreements on energy and the environment and issued a joint statement that spelt out issues for cooperation. An environmental accord called for the two to work on a successor to the Kyoto Protocol on climate change by 2013. The other agreement committed the two nations to cooperate on developing energy resources and building nuclear power plants in China. In the joint statement, the two vowed to seek ways to jointly develop gas deposits in disputed waters, pursue the denuclearization of the Korean Peninsula, and strengthen defense cooperation. During their talks, Wen said that the history issue is crucial for bilateral relations as it affects the national feeling of the Chinese people. It could be an obstacle to improved ties if not handled well, he added. He urged the Japanese leaders to face up to history and "open up good, forward-looking relations toward a beautiful future". Wen also reiterated China's position on the Taiwan question, hoping the Japanese side can realize the acute sensitivity of the issue and deal with it properly. Abe reiterated Japan's commitment to the principles enunciated in the three joint documents directing bilateral relations. On disputed waters in the East China Sea, the two sides agreed to speed up the negotiation process to seek a solution that is acceptable to both. The two sides pledged to make the area "a sea of peace, cooperation and friendship". Wen arrived in Tokyo just hours after the two countries signed an accord lifting Beijing's four-year ban on Japanese rice imports. China banned imports in 2003, claiming Japanese rice did not meet the requirements of its revised quarantine system. Wen is scheduled to address Japan's parliament today. He will also meet Emperor Akihito and co-chair an inaugural meeting with Abe on a high-level economic dialogue that will involve officials at the ministerial level and above. He will even join in a game of baseball - a popular sport in Japan - tomorrow with college students in western Japan before returning. Meanwhile, Abe accepted an invitation to visit China again this year. Though no timetable has been set, it is widely believed that he will visit in the autumn to attend the celebrations marking the 35th anniversary of the normalization of bilateral relations. His trip is seen as setting the stage for President Hu Jintao's first visit to Japan next year.

A top energy team under China's cabinet is drafting a strategy to increase access to sustainable energy among the rural poor.The plan will be based on research of other countries' experiences and is scheduled for release next year, the United Nations Development Program (UNDP) announced on Friday.The UN agency will help the Energy Leading Group affiliated with the State Council to attract global energy experts to work on the draft."We want to help the (Chinese) government come up with a viable rural energy strategy, which may serve as a role model for other developing countries," Shen Yiyang, program manager of UNDP's Energy & Environment Team, told China Daily.Details of the draft's contents were unavailable.Ma Xiaohe, vice-president of the Academy of Macroeconomic Research under the National Development and Reform Commission, confirmed that an overall rural energy strategy is being developed.Energy demand in rural areas is expected to increase rapidly in the run-up to 2030, he said.Rural energy consumption is expected to reach between 1 and 1.4 billion tons coal equivalent by 2015, compared to 370 million tons in 2000.The supply of commercial energy - electricity, coal and natural gas - is expected to meet two-thirds of rural areas' energy demand. Energy sources located in the countryside will supply the other third, Ma said.Currently, renewable energy accounts for only a small amount of rural energy supplies. But according to Ma, green energy will reach 400 million tons of coal equivalent by 2020.The country has set a goal of raising the ratio of renewable energy in the total energy supply to 15 percent by 2020, compared to the present 8 percent.