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CANBERRA, March 21 (Xinhua) -- Li Changchun, a senior official of the Communist Party of China (CPC), met with Australian Prime Minister Kevin Rudd here Saturday, and the two leaders pledged to combat the financial crisis and further develop bilateral ties.     After conveying greetings from Chinese President Hu Jintao and Premier Wen Jiabao to Rudd, Li, a member of the Standing Committee of the Political Bureau of the CPC Central Committee, expressed sympathy to Australia for the recent bushfires and floods. Australian Prime Minister Kevin Rudd (1st R) meets with Li Changchun (1st L), a member of the Standing Committee of the Political Bureau of the Central Committee of the Communist Party of China, in Canberra, capital of Australia, March 21, 2009On bilateral ties, Li proposed both countries keep high-level exchanges and he welcomed Rudd and other Australian leaders to visit China.     He suggested the two countries expand economic cooperation on the basis of mutual benefits. "Proceeding from the fundamental interests of our development, our two countries should promote energy and resources enterprises to forge long-term strategic cooperative relations," he said.     He also urged the two sides to steadily advance negotiations on the Free Trade Agreement in line with active, pragmatic, balanced and mutually beneficial principles.     Australia is a major destination for Chinese overseas students and tourists. Li pledged to strengthen bilateral cultural links between the two peoples. He welcomed the Australian side to participate in the World Expo due to be held in Shanghai in 2010.     Both China and Australia are important countries in the region.Li suggested both countries maintain close consultation on such major matters as combating the financial crisis and coping with climate change. Li Changchun (L Front), a member of the Standing Committee of the Political Bureau of the Central Committee of the Communist Party of China, visits the National Museum of Australia in Canberra, capital of Australia, March 21, 2009The Group of 20 London Summit will be due in early April. Rudd told Li that he anticipated meeting again with Chinese President Hu Jintao during the summit. The close contacts between the leaders of the two countries have promoted the growth of bilateral ties and the expanding common interests have opened broad prospects for bilateral cooperation in all areas, he said.     He also spoke highly of the stimulus measures adopted by China after the financial crisis. He said that the role of G20 should be given full play for accumulating a consensus for addressing the current financial and economic problems.     On the reform of the international financial system, emerging countries should increase their say and decision-making rights, he said.     Also on Saturday, Li visited the National Portrait Museum and National Museum of Australia.     Li arrived in Australia on Friday. Australia is the first-leg of Li's four-nation tour which will also take him to Myanmar, the Republic of Korea and Japan.

WASHINGTON, March 24 (Xinhua) -- In a gross interference in China's internal affairs, the U.S. House of Representatives on Tuesday voted to adopt a resolution arrogantly recognizing the so-called "30th anniversary of the Taiwan Relations Act."     The Taiwan Relations Act, passed by the U.S. Congress in 1979, required the United States "to provide Taiwan with arms of a defensive character." China has never recognized the legitimacy of the act.     On Feb. 25, two days after the so-called Resolution 55, named Recognizing the 30th anniversary of the Taiwan Relations Act, was referred to the House Committee on Foreign Affairs of the U.S. Congress by 17 representatives, China voiced strong dissatisfaction and lodged solemn representations to the United States over the issue.     "A handful of representatives from the U.S. Congress" had proposed the resolution "despite China's clear opposition," said Chinese Foreign Ministry spokesman Ma Zhaoxu in a press release dated Feb. 25.     It is known to all that the "so-called" Taiwan Relations Act, enacted unilaterally by the United States, had gravely violated the basic norms guiding international relations, said Ma. It also violated the United States' serious commitment to China and intervened in China's internal affairs, he added.     "The Chinese government and people opposed the act strongly from the day it was worked out," he stressed.     It is widely recognized by the international community that Taiwan, an island province separated from the mainland as a result of the Chinese civil war in the late 1940s, is an integral part of China.

BEIJING, March 26 (Xinhua) -- China's central bank governor has spoken highly of the government's rapid responses to the current global financial crisis, featuring decisively adopting a proactive fiscal policy and an adaptively easing monetary policy, and launching a bundle of timely, targeted and temporary policies and measures.     The prompt, decisive and effective policy measures adopted by the Chinese government demonstrates "its superior system advantage when it comes to making vital policy decisions," says Zhou Xiaochuan, president of the People's Bank of China (PBC), in an article entitled "Changing Pro-cyclicality for Financial and Economic Stability."     It is Zhou's third article published on the central bank's official website (WWW.PBC.GOV.CN) this week to discuss the issue of the current global financial crisis. His first and second articles, published on Monday and Tuesday, are entitled "Reform the International Monetary System" and "On Savings Ratio," respectively.     In the third article, the 61-year old central bank governor tries to find out the root causes for the current financial crisis, including but not limited to lessons on monetary policy, financial sector regulations, accounting rules.     The top Chinese banker says he wants to stimulate debate and discussions on some of the pro-cyclical features in the system, possible remedial measures, and how monetary and fiscal authorities can play their professional roles at times of severe market distress.     "Financial crises normally originate in the accumulation of bubbles and their subsequent bursts. Usually, economists pay a lot of attentions to pro-cyclicality on the macro level.     However, on the micro level, there are quite a number of notable pro-cyclical features embedded in the market structure today, which should be addressed as we deal with the current crisis and reform the financial system," he says.     Zhou suggests that in the current market structure, more counter-cyclical mechanisms or negative feedback loops on micro-level should be put in place to sustain a more stable financial system.     In the article, he notes that rating problems and herding phenomenon arise from outsourcing.     The global financial system relies heavily on the external credit ratings for investment decisions and risk management, giving rise to a prominent feature of pro-cyclicality, according to the central bank governor.     "Economic upswings produce euphoria and downturns generate pessimism," he says, "Many market players adopting ratings from the three agencies and using them as the yardstick for operations and internal performance assessments clearly result in a massive "herd behavior" at the institutional level."     Zhou points out that some market players seem to have forgotten that the ratings are no more than indicators of default probabilities based on past experiences but were never meant to be guarantees for the future, he says. "Once problems take place, as we have seen during the current crisis, fingers are pointed to the rating agencies," he says.     He suggests that financial institutions should try to rely more on internal rating in assessing risks.     He calls for giving full play to the professional role of authorities in maintaining overall financial stability and establishing a counter-cyclical mechanism for capital requirement     "To stabilize markets under severe stress, finance ministries and central banks need to act fast and apply extraordinary measures," he says, "Untimely or delayed response falls behind the curve and would make the outcome less than desired even if the response is correct and strong."     In modern Western societies, a prolonged political process for mandates to finance ministries or central banks often miss the best timing for action, Zhou says, adding, "We have observed such cases during the current crisis."     He suggests that governments and legislatures may consider giving pre-authorized mandates to ministries of finance and central banks to use extraordinary means to contain systemic risk under well-defined stress scenarios, in order to allow them to act boldly and expeditiously without having to go through a lengthy or even painful approval process.     "Such systematic pre-authorized mandates would put the specialized expertise of finance ministries and central banks to the best use when markets need it the most," he stresses.     The central bank governor attributes China's current success in easing the impacts of the crisis to the country's financial sector reform and ongoing macroeconomic stimulus measures     In 2003, fully aware of the systemic vulnerabilities of China's banking industry, the Chinese government made a courageous and strategic decision to restructure the four state-owned commercial banks, says Zhou, who took over as the PBC governor in late 2002.     In the article, Zhou gives a look back on the reforms of the country's major banks and security industry.     But he warns, "We should bear in mind that despite the notable achievements in banking reform, the major banks have not gone through a full business cycle and still have much to improve. An economic slowdown will be the ultimate stress test for the robustness of the banks' strengths."     According to the bank governor, irrespective of China's sound financial sector, the Chinese economy, especially the export sector, has felt the impact brought by the slowdown of the global economy.     He praises the Chinese government for its plans to stimulate domestic demand and promote stable and relatively rapid economic growth, including the extra investment of 4 trillion yuan (685 billion U.S. dollars) in over two years, the ten measures to revitalize the industrial sectors, and other bolster measures to increase money supply, promote employment, reform taxes and medical and healthcare system.     "Having taken the above-mentioned measures, China expect to maintain stable economic growth by boosting domestic demand and reducing dependence on external demand, thus serving as a stabilizing force in global economy," Zhou says.     In overall, the macroeconomic measures have produced preliminary result and some leading indicators are pointing to recovery of economic growth, indicating that rapid decline in growth has been curbed, he concludes.

HAIKOU, April 5 (Xinhua) -- Traffic had been resumed on Sunday on the highway that had been flooded by collapse of a small reservoir on March 27, in south China's Hainan Province, local authorities said.     The Wanning section of the province's eastern expressway had been resumed in both directions at 8:00 p.m. after nine days of reconstruction work, said an official with the provincial Communication Department.     The Bofeng reservoir, with a designed water storage capacity of1.02 million cubic meters, collapsed at about 10 p.m. in Xinglong Town, Wanning City.     The ensuing floods washed out a slip road to the province's eastern expressway and swept away two cars, injuring three people in the vehicles.     The water also inundated 20 hectares of farmland and caused slight damage to three riverside houses.     The municipal water conservancy administration had claimed that only 100,000 cubic meters of water burst from the reservoir. However, Chen Xingzhang, secretary of the CPC municipal committee of Wanning, doubted its credibility.     Vehicles had to detour around the flooded road over the past days.     The reservoir was being reinforced at the time of the accident. An investigation showed that workers of a company in charge of the project exploded part of the cofferdam before the water dropped to the safety level, which led to the collapse. The scheme had no approval from authorities at the time.     The construction contractor, Hongda Water Conservancy Projects Co, Ltd., based in Henan Province, and the project supervising company, Hainan Institute of Water Conservancy and Power Construction Survey and Design, were banned from carrying out further business in the city.     Police have detained four project workers in connection with alleged safety violations that led to the collapse in the province, the local Communist Party of China (CPC) committee said Monday.     Chen Ruchuan, former head of the water conservancy administration of Wanning City, and two deputy heads, were also sacked from their posts Monday, according to the Wanning municipal committee of the CPC.     The local government has been working on a plan to compensate people affected in the accident.

BEIJING, April 8 (Xinhua) -- Chinese Vice President Xi Jinping met on Wednesday with visiting Thai Princess Maha Chakri Sirindhorn.     Xi expressed appreciation for her contribution to Sino-Thai friendship and donation to the country's earthquake-hit areas.     During her China trip from April 3-10, Sirindhorn visited southwest China's Sichuan Province, and donated 10 million yuan for the rebuilding of schools damaged by last year's devastating earthquake. Chinese Vice President Xi Jinping (R) shakes hands with Thai Princess Maha Chakri Sirindhorn in the Great Hall of the People in Beijing, China, April 8, 2009    Xi said China is ready to make joint efforts with Thailand to raise bilateral strategic cooperation to a new level.     Remarkable progress in bilateral cooperation has benefited the two peoples, and contributed to regional peace and stability, Xi said.     Sirindhorn told Xi she has a deep affection for China, and she is impressed with the great changes taking place in China whenever she visits the country.     The Thai princess said she would contribute more to enhancing Thailand-China friendship and cooperation.

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