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BEIJING, Oct. 8 (Xinhua) -- China's central bank on Wednesday announced cuts in both the interest rate and reserve-requirement ratio in the latest effort to boost the domestic economy amid worries over the deepening global financial crisis. The deposit and lending rates would be lowered by 0.27 percentage points from Thursday and the reserve-requirement ratio would be down by 0.5 percentage points from Oct. 15, the People's Bank of China (PBOC) said. "This was mainly out of concerns over an economic slowdown," said Ba Shusong, deputy chief of the Finance Research Institute under the Development Research Center of the State Council. "The rate cut was expected as the world was faced with a cycle of interest rate cuts," he told Xinhua. OUT OF SLOWDOWN CONCERNS The loosening in monetary policy, the second such move in less than a month, highlighted the government's rising concern over the slowing economy and slumping capital market. The PBOC cut the benchmark one-year lending rate by 0.27 percentage points on Sept. 16, the first rate cut in six years. It also lowered the reserve requirement at medium- and small-sized lenders by 1 percentage point as of Sept. 25. Tang Min, China Development Research Foundation deputy secretary, echoed Ba's viewpoint. Tang said the government made the move mainly out of concerns over domestic problems. "The deepening U.S.-originated credit crisis has impacted the psychology of Chinese and also the real economy," he told Xinhua. Investors, gripped by lingering fears of global economic downturn, dumped equities to drive the stock market down 66 percent from its peak last October. China's gross domestic product (GDP) expanded 10.1 percent in the second quarter of the year, marking a deceleration for four consecutive quarters. Its exports, a major driver behind the economy, reported slowing growth this year as the credit crisis reduced overseas demand for its goods. This has led to the closures of tens of thousands of local exporters and also job losses. Local businesses bore the brunt of higher borrowing costs and were even finding it difficult to get credit after last year's tightening measures aimed at curbing inflation and averting economic overheating. The easing in inflation has given room for the authorities to loosen monetary policy. The consumer price index rose 4.9 percent in August, off from the 12-year-high of 8.7 percent in February. "Inflation is no longer a threat with the declining commodities prices," Tang said. The monetary policy has been starting to loosen and the trend would not change in the short term, said Zhuang Jian, an Asian Development Bank (ADB) economist. "The whole world doesn't have strong confidence in the economic outlook." TAX CUT TO BOOST DEMAND In another move to boost domestic demand, the State Council, China's Cabinet, said it would scrap the 5 percent individual income tax on savings interest earnings starting on Thursday. China began levying a 20 percent individual income tax on interest earnings in 1999 to narrow the income gap and encourage consumption and investment. The tax rate was slashed to 5 percent on Aug. 15, 2007. The income tax cut was a must as it would help alleviate the erosion on personal income by high prices, especially given the cut in the deposit rate, Li Yang, head of the Finance Research Institute under the Chinese Academy of Social Sciences. The tax cut, together with lower borrowing costs, would boost domestic demand, an increasingly more important driver of economy in the global credit crisis, Zuo Xiaolei, China Galaxy Securities chief economist, said. GLOBAL COORDINATED RESPONSE The move was also a timely response to the rate cuts by other major central banks and part of a coordinated effort to stem the global crisis, Tang said. Six other major central banks, including the U.S. Federal Reserve, slashed interest rates on the same day to cope with the current financial crisis. The U.S. Federal Reserve lowered its target for the federal funds rate by 0.5 percentage points to 1.5 percent. The Bank of England cut its rate by half a point to 4.5 percent and the European Central Bank cut by the same margin to 3.75 percent. Central banks of Canada, Sweden and Switzerland took similar actions. The Bank of Japan said it strongly supported these policy actions. Australia's central bank on Tuesday slashed the interest rate by 1 percentage point, the largest cut since 1992.
BEIJING, Aug. 8 (Xinhua) -- The opening ceremony of the Beijing Olympic Games staged here on Friday night has caught nearly 40 billion people's eyes worldwide. A dream-come-true resonance that longed for a hundred years and prepared for 84 months is giving millions of reasons to Chinese to have a sleepless night. THRILLING VENUE AUDIENCE AND ATHLETES Chinese former gymnastics champion Li Ning kindles the cauldron of the Beijing Olympic Games during the opening ceremony of the Beijing Olympic Games held in the National Stadium, also known as the Bird's Nest, in north Beijing, China, Aug. 8, 2008. "The most exciting moment is the igniting part, it combines technology, traditional arts and Li Ning's effort in such a perfect way," Xie Mengxin, a girl sitting in the stadium, known as Bird's Nest, said after the ceremony. "There have been so many heart-shaking moments in it and we were all thrilled," she said, adding that the spacewalking-like showing of the last torch bearer for the Games has beyond her imagination. Paduld Sri Rohana de Pettagan, an official with the Sri Lanka Olympic Committee, said "I love the countdown part which combines the Chinese ancient history with the modern high technology." "The opening is so good, with so many hi-tech features. The organizers used fireworks, LED screen, video and audio technologies to show the best of China," he added.The cauldron of the Beijing Olympic Games is ablaze over the National Stadium, also known as the Bird's Nest, in north Beijing, China, in the early morning of Aug. 9, 2008. "Every part of the preparation of the Beijing Olympic Games is fantastic. The Games is an opportunity for the world to understand China, and for China to understand the world as well." Michael Naumann, a tourist from Germany who watched the ceremony on TV, told Xinhua. "It was awesome. A lot different from the other ones. Being a vet, seeing the new guys' faces when we were walking into the stadium for the first time was awesome." Brian Olson from U.S. said. "This Olympics has gone above and beyond. It was special, whether it's your fourth or first." the judoka coming from Tallahassee, Florida said. "It was once in a lifetime, I loved it. I was speechless at times. I really liked the torch and the guy flying through the air," said Demetrius Andrade, a U.S. Boxer from Providence, Rhode Island. "It was really nice, it was inspirational. It made me want to compete," said another Boxer Sadam Ali who was among others encouraged to "give it all you have got" by U.S. president George Bush before attending the opening ceremony.

BEIJING, April 5 (Xinhua) -- Chinese President Hu Jintao and other senior leaders took part in a voluntary tree planting activity at the Olympic Forest Park here on Saturday. China's top legislator Wu Bangguo, Premier Wen Jiabao, top political advisor Jia Qinglin, as well as Li Changchun, Xi Jinping, Li Keqiang, He Guoqiang, and Zhou Yongkang also planted trees at the park next to the national stadium, the main venue of the Beijing Olympic Games. Covering some 680 hectares in the north of Beijing, the park is a major part of the 2008 Olympics infrastructure, which is expected to improve the city's environment and air quality. Hu said during the activity that the Beijing Olympics and Paralympics are approaching. He urged Beijingers to support the Green Olympics initiative and make the city greener and more beautiful before athletes from worldwide come in August. Chinese President Hu Jintao (C) takes part in tree planting at the Olympic Forest Park in Beijing, capital of China, April 5, 2008 Beijing's air quality has been a subject of concern among some foreign athletes planning to attend the Games. However, many have acknowledged that the city has done much to improve its air quality. This is the fifth time since 2001 for top leaders to take part in planting at the park, where nearly 500,000 trees have been planted. Hu said voluntary tree planting is an effective way to get everyone involved in improving the environment. "For every tree we plant today, we gain another spot of green in the future," he said. About 2 million Beijingers took part in planting activities in the capital on Saturday, which is Beijing's 24th voluntary tree planting day.
GUANGZHOU, July 20 (Xinhua) -- Chinese Premier Wen Jiabao has said unswerving confidence and arduous work are needed to achieve the goals of a steady and relatively fast economic development and control of soaring consumer prices in the country. Wen visited Guangdong Province - the country's reform and opening-up forerunner, on Saturday and Sunday, for research on current domestic economic situation. Chinese Premier Wen Jiabao (2nd L) looks at a specimen of a shoe during his visit in a company in Dongguan, south China’s Guangdong Province, July 19, 2008. Wen Jiabao paid an inspection tour to Guangdong on Saturday to investigate and research the province's economic situation.The premier visited steel, shoes, digital machinery and high-tech enterprises in Guangzhou, Dongguan and Shenzhen to know their production, sales and products development. More efforts should be made in the research and development and improvement of technological levels to create home-made brands and increase competitiveness, he said. Just as with the whole nation, Guangdong has a good social and economic situation, but also faces many new difficulties and problems, Wen said. Some exports-oriented small and medium-sized enterprises in the Pearl River Delta area have felt the increasing impact of the world's economic growth slowdown and shrinking foreign demands, he noted. The fundamental way to deal with the challenges is to deepen reform and opening up and promote development in a scientific way, said the premier. During the visit, Wen talked with staff and managers of enterprises and urged them to attach importance to innovation. The key to the development of a country, a nationality and an enterprise is innovation, Wen said. Only continuous innovations can enable the Chinese nation stand up in the world and enterprises become leaders of their industries, he said. Guangdong has made great achievements in economic and social development in the past 30 years, realized a historic jump and contributed a lot to the country's reform and opening up and modernization construction, Wen said. The province should continue to take the lead in the country's reform and opening up, he added.
CHENGDU, May 18 (Xinhua) -- Chinese President Hu Jintao Saturday night expressed gratitude to foreign countries and people who have offered aid since a major earthquake struck the country. "On behalf of the Central Committee of the Communist Party of China (CPC), the State Council and the Central Military Commission, I express heartfelt thanks to the foreign governments and international friends that have contributed to our quake-relief work," Hu said. Chinese President Hu Jintao Saturday night speaks at a meeting on rescue and relief work of the earthquake, expressing gratitudes to foreign countries and people who have offered aid since a major earthquake struck the country.Hu, also general secretary of the CPC Central Committee, made the remarks at a meeting on rescue and relief work after the 7.8-magnitude earthquake ravaged southwestern Sichuan Province Monday afternoon. Hu also conveyed his greetings to the government officials and people in the disaster-hit areas, the People's Liberation Army (PLA), armed police, militia, reservists, public security staff, medical personnel, journalists and all people making "selfless devotions" to the quake-devastated areas. More than 200 rescuers from Japan, Russia, the Republic of Korea (ROK) and Singapore are in Sichuan to help with the rescue and disaster relief work. A 61-year-old woman was saved alive Saturday evening by Russian rescuers after being buried for up to 127 hours in the rubble, the first survivor found by foreign rescuers. The earthquake, the worst in decades, had caused 28,881 deaths nationwide as of 2 p.m. Saturday. Many countries have offered help including making donations and sending rescue teams. QUAKE RELIEF ATOP GOVERNMENT WORK AGENDA In the meeting, Hu urged local governments at all levels and relevant central government departments to take quake relief as the most important and pressing issue in their work. He called for unremitting efforts to search for and rescue the trapped people though more than five days had passed after the disaster. "We should put people first and saving people's lives is still the top priority of the relief work," he said. Troops, armed police, and public security personnel should reach villages and search every collapsed buildings to save the people, he said. Hu also called for all-out efforts to save and cure injured survivors, urging to transfer them to hospitals with better conditions. Hygiene measures in the quake-hit areas should be beefed up to prevent the spread of diseases, and more medical experts should be sent to these areas to help prevent and control possible epidemics, Hu said. During the meeting, Hu expressed his concern for the people in the quake-devastated areas, calling for arrangements of supplies of daily necessities to meet people's demands. Food, clothes, drinking water and temporary shelters must be ensured, he emphasized. Hu also underscored social stability in quake hit areas, ordering officials to give considerate comfort and condolence to people to ensure a peaceful social environment. "We must keep highly alert" against aftershocks and avoid further losses, he warned. Hu also called for tightened monitoring and prevention measures on geological disasters such as landslides and mud-rock flows. He said early planning is important for reconstruction as the country now faces a challenging task in this regard. He also ordered early preparations and arrangements to deal with the issues of orphans, seniors and disabled. The meeting was presided over by Vice Premier Hui Liangyu, who urged implementation of the overall quake-relief strategies of the central government.
来源:资阳报