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BEIJING, Dec. 12 (Xinhua) -- China should take more forward looking and preemptive measures to fight inflation expectations following this year's credit boom and runaway property prices, said a report released by a leading Chinese bank. Bank loans should be extended at a more reasonable pace with improved structures next year and policy fine-tuning is necessary, the Bank of Communications has said in a report released by its financial research center. The government should maintain the continuity and stability of its monetary policy and meanwhile be more targeted and flexible, it said. The report noted an over brisk equity and property market are always prelude of inflation. Money flow should be regulated to prevent asset bubbles. It also suggested government increase supply of land resources and affordable housing and crack down on land enclosure to curb skyrocketing property prices which gained the most in 14 months in November. CPI, the main gauge of inflation, jumped 0.6 percent in November from a year ago, the first monthly growth since January, because of lower statistical bases and rising food prices. The producer price index (PPI), a major measure of inflation at the wholesale level, declined 2.1 percent in November from a year earlier. The report expected PPI to end monthly drop in December, and the annual CPI decline to narrow to 0.8 percent. Hyperinflation is unlikely and CPI is predicted to rise four percent next year, it said.
GENEVA, Nov. 30 (Xinhua) -- China will maintain the stability of its Renminbi (RMB) exchange rate all along, which does good for the world economic recovery, Commerce Minister Chen Deming said on Monday. China's exchange rate reform has continued smoothly, and the value of RMB has risen by some 20 percent against the U.S. dollar since 2005, Chen told reporters in Geneva, where he is attending a ministerial conference of the World Trade Organization. Despite the impact of the global financial crisis and all kinds of other difficulties, the Chinese government has actively tried to boost domestic consumption and stimulate imports, Chen said. Visiting Chinese Commerce Minister Chen Deming attends a launching ceremony of China-Swiss joint study to examine the feasibility of a Free Trade Agreement (FTA) in Geneva, Switzerland, Nov. 30, 2009 Maintaining a relatively stable RMB exchange rate serves the need of China's economic development as well as the world's economic stability, he added. According to the minister, China's foreign trade surplus is expected to drop by more than a third to 190 billion dollars this year from last year's 290 billion dollars. Chen also urged the world's major reserve currencies to remain stable. He said the continuous depreciation of these currencies had caused much difficulty for the world economy, and that the attempts to transfer the difficulty to other countries are unjustifiable.
BEIJING, Oct. 26 (Xinhua) -- Chinese Vice Premier Li Keqiang restated on Monday that the country's quarterly economic growth was quickening and the contribution of domestic demand to economic growth was enhanced. Li made the remarks at the Third International Tax Dialogue (ITD) Global Conference, which opened in Beijing on Monday. Chinese Vice Premier Li Keqiang addresses the opening ceremony of the 3rd International Tax Dialogue Global Conference in Beijing, capital of China, Oct. 26, 2009.China's economy rose 6.1 percent year on year in the first quarter of this year, 7.9 percent in the second quarter and 8.9 percent in the third quarter, according to statistics of the National Bureau of Statistics. "We should maintain the continuity and stability of macro-economic policies while enhance the flexibility and sustainability of these policies," he said. Chinese Vice Premier Li Keqiang (1st L) addresses the opening ceremony of the 3rd International Tax Dialogue Global Conference in Beijing, capital of China, Oct. 26, 2009. Li said the global economic recovery was at a crucial stage and governments around the world were facing both challenges and opportunities in the processes of economic structure adjustment and economic model transfer. He called on the international community to balance the developments of virtual economy and real economy, oppose trade protectionism, provide more supports to developing countries, especially the underdeveloped countries, to promote the all-round, balanced and sustainable development of world economy. The ITD conference was first launched in 2005 and is held every two years. Theme for this year's meeting which would end Wednesday is "Financial Institutions and Instruments - Tax Challenges and Solutions."
COPENHAGEN, Dec. 17 (Xinhua) -- Chinese Premier Wen Jiabao said on Thursday that China is not obliged to subject its voluntary climate action to international monitoring. Wen made the remarks when meeting with some world leaders on the sidelines of the ongoing UN climate change conference in the Danish capital, Chinese Vice Foreign Minister He Yafei told reporters. The Bali Action Plan has clear stipulations regarding whether a country's mitigation action should be subject to international scrutiny, He Yafei quoted Wen as saying. "For developing countries, only those mitigation actions supported internationally will be subject to the MRV. The voluntary mitigation actions should not be subject to international MRV," Wen said, referring to the scheme requiring national mitigation action to be "measurable, reportable and verifiable." Chinese Premier Wen Jiabao (3rd, R) poses for a group photo with President of the Maldvies Mohammed Nasheed (3rd, L), Bangladeshi Prime Minister Sheikh Hasina (2nd, L), Ethiopian Prime Minister Meles Zenawi (2nd, R), Grenadian Prime Minister Tillman Thomas (1st, R) and Sudanese Presidential Assistant Nafie Ali Nafie (1st, L) ahead of their meeting in Copenhagen, capital of Denmark, on Dec. 17, 2009. Negotiators from more than 190 countries are running against time on Thursday to wrap up the 11-day talks, hoping to seal a deal to move forward the global fight against climate change before world leaders meet on Friday. The Bali Action Plan, adopted by both developed and developing countries in 2007, lays down the basis for the current negotiations. Disregarding what they have agreed, developed countries are trying to press China to accept international monitoring of its national mitigation action. The United States said on Thursday it was prepared to join other rich countries in raising 100 billion U.S. dollars annually by 2020 to help developing countries combat climate change, but set a condition that emerging countries including China should accept international monitoring of its mitigation action. Chinese Premier Wen Jiabao (R) shakes hands with German Chancellor Angela Merkel in Copenhagen, Denmark, Dec. 17, 2009Wen said China's refusal of international monitoring does not mean the country is afraid of supervision. "It is a matter of principle, the principle of common but differentiated responsibilities," Wen said. As the climate change negotiations dragged on, Wen said the important thing is to take action. "A dozen declarations are not worth one action, meaning action speaks louder than declaration," the premier said, calling for mutual trust. "Mutual trust is extremely important. We should not go for suspicion. We should not go for confrontation. We should go for cooperation," he said. Chinese Premier Wen Jiabao (R) shakes hands with British Prime Minister Gordon Brown in Copenhagen, Denmark, Dec. 17, 2009Wen said China will take necessary domestic measures to ensure full transparency and implementation of its national mitigation action. "As Premier Wen has decided, the mitigation action we have set for China will be fully guaranteed legally, domestically," He Yafei said. "There would be a monitoring and verification regime inside China, which is legally binding in China." The Chinese government recently announced a plan to reduce the per unit of GDP energy consumption by 20 percent till 2010, and it is poised to put the target into its national social and economic development plan. Wen said China would also consider dialogue and cooperation with other countries, warning there should be no infringement on China's sovereignty. "We promise to make our action transparent. We promise the implementation of action," Wen said.
BEIJING, Jan. 9 (Xinhua) -- China Saturday "strongly" urged the United States to respect its core interests and grave concerns, and immediately stop arms sales to Taiwan to avoid harms to the Sino-U.S. cooperation. The U.S. arms sales to Taiwan undermined China's national security as well as the peace and stability across the Taiwan Strait, Vice Foreign Minister He Yafei told Xinhua in an exclusive interview, once again voicing China's "resolute opposition" to the sales. This was the sixth official announcement made by China over the issue in a week, as spokespersons with the Foreign Ministry and the Defense Ministry had repeatedly denounced the U.S. move. He said that in response to the U.S. government's recent approval of Raytheon Company and Lockheed Martin Corp. to sell weapons to Taiwan, the Chinese side had made solemn representations with the U.S. side. The two U.S. Companies' sales plan was part of the arms sales package announced in October 2008 under the Bush Administration, which included weapons and equipments such as Patriot III anti-missile system. The sales of weapons to Taiwan seriously violated the three Sino-U.S. joint communiques, in particular the principles enshrined in the August 17 Communique, said He, adding China's stance on this issue was always "consistent, clear and unswerving." He said the Taiwan issue was "the most important and sensitive issue at the core of Sino-U.S. relations." Noting the Sino-U.S. relations had maintained a steady momentum of development since U.S. President Barack Obama took office, He said this progress was hard-earned and should be valued by both countries. China hoped the United States would work with China to earnestly implement the important consensus on developing bilateral relations reached by leaders of the two countries, strictly abide by the three Sino-U.S. joint communiques and principles of the joint statement issued last November, enhance bilateral dialogue, coordination and cooperation in various spheres, so as to push forward the sound and steady development of bilateral ties, said He.