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BOAO, Hainan, April 19 (Xinhua) -- Chinese officials and entrepreneurs said Sunday that China should have bigger say in setting commodity prices, as oil and iron ore prices saw roller-coaster-like fluctuations in the past two years. The drastic price changes are not reflecting real demand, but are propped up by financial speculators, said the senior executives of China's top energy enterprises at the Boao Forum for Asia (BFA) annual conference 2009, which concluded Sunday in the island resort of Boao in south China's Hainan Province. They said commodity prices should be pulled back to normal track to reflect real demand, otherwise the inflation woe will come back and make business expansion unsustainable. PRICE AND REAL DEMAND "Although we are the biggest commodity buyer in the world, our role in the price setting is limited," said Zhang Xiaoqiang, vice minister of the National Development and Reform Commission (NDRC), China's economic planning agency. China's steel makers have fallen into a prolonged bargain with the world's major iron ore producers, demanding a sharper price cut than the 20 percent-off deal plan offered by the Rio Tinto of Australia, as the world's No.1 iron ore importer has less demand amid the economic slowdown. Iron ore prices increased five fold in the five years before 2008. Xu Lejiang, boss of the Baosteel Group Corporation, China's largest steel maker, said at the forum that nothing is more important than the normalization of iron ore pricing, without elaborating how much more price cut he wants. The continuously rising iron ore prices partly reflected demand, but that's not the whole picture, said Xu. The prices tumbled by more than two thirds from a peak of 187 U.S. dollars per tonne last year. Speculative trading on iron ore shipping index helped fan the volatility, since shipping costs comprise a large share of the iron ore prices. The Baltic Dry Index (BDI), a main gauge of international shipping activities, has plummeted from a peak of 11,000 points to above 600 points, which is certainly what people are reluctant to see, Xu said. His view was echoed by Fu Chengyu, chief executive officer of the China National Offshore Oil Corporation (CNOOC), the largest offshore oil producer in China. He said the prices are bound to fall after irrational rise. He said the loose monetary policy in the United States should be blamed for the skyrocketing oil prices last year. "If no measures were taken, the world would see another round of inflation after we weather through the crisis," he said. He noted the pre-emptive measures should be put into place to avoid that, otherwise the next headache for the G20 leaders will be how to fight inflation. "We should prepare for tomorrow," Fu said. Zhang Xiaoqiang said international collaboration is essential to enhance the oversight of the financial speculation. ACTION BEFORE CRISIS The volatile external conditions forced many Chinese energy enterprises to seek their own way to offset the negative impacts of price fluctuations. Cost saving has always been important to CNOOC, said Fu. "We have cut the cost to 19.78 U.S. dollars per barrel, and that has allowed us to get through with ease when prices fall." "We step up investment with the current cheap prices, and that will help us flourish after the crisis," Fu said. To offset the negative impacts of price changes, many Chinese enterprises have been engaged in hedge trading and other derivative products investment, but many failed with mounting losses. "CNOOC has lost nothing, since we use hedge trading to preserve value, rather than make money," he said. "Hedge trading is not speculation," said Fu who has 30 years of experience in the oil industry. Fu called on Asian countries to negotiate with the world's major crude oil suppliers, as Asian nations have to pay 1 to 2 U. S. dollars more per barrel than other buyers. Zhang Xiaoqiang noted China will continue to liberalize domestic prices of energy products and resources, saying the recent reform of refined oil prices is a good start. "We should beef up our commodity reserve to ensure plenty supply in order to offset the negative impacts of big price changes," Zhang said. As the Chinese government has announced plans to build the second batch of national oil reserve bases, enterprises can try to have their commercial energy reserves in the future.
SANMEN, Zhejiang, April 19 (Xinhua) -- China on Sunday started the construction of its first third-generation pressurized water reactors using AP 1000 technologies developed by U.S.-based Westinghouse. The reactors, located in Sanmen of east China's Zhejiang Province, will also be the first in the world using such technologies. The Sanmen Nuclear Power Plant will be built in three phases, with an investment of more than 40 billion yuan (5.88 billion U.S. dollars) injected in the first phase. The first phase project will include two units each with a generating capacity of 1.25 million kw. Photo taken on April 18, 2009 shows the foundational construction site of the No.1 unit of the first phase of the Sanmen nuclear plant in Zhejiang Province. The Sanmen nuclear plant, with the world's first nuclear plant using the AP1000 technologies, a type of third generation nuclear power reactor introduced by America's Westinghouse company, started the construction recently The first generating unit will be put into operation in 2013, and the second, in 2014. The plant will eventually have six such units. "It is the biggest energy cooperation project between China andthe United States," said Zhang Guobao, vice minister in charge of the National Development and Reform Commission and also head of the National Energy Administration. "It will contribute to the human kind's peaceful use of nuclear power," he said. China launched bidding in 2003 for its nuclear power stations of the third generation. Foreign companies including Westinghouse, France's Areva and Russia's AtomStroy Export are major bidders. Photo taken on April 18, 2009 shows the foundational construction site of the No.1 unit of the first phase of the Sanmen nuclear plant in Zhejiang Province. The Sanmen nuclear plant, with the world's first nuclear plant using the AP1000 technologies, a type of third generation nuclear power reactor introduced by America's Westinghouse company, started the construction recentlyWestinghouse became the winner after China signed a memo with the United States on the introduction and transfer of third-generation nuclear power technologies in December 2006. The final agreement was inked between China's State Nuclear Power Technology Corporation and Westinghouse in July 2007, according to which China will buy four third-generation pressurized water reactors from Westinghouse. The agreement also involves technology transfer to China. Two of the four pressurized water reactors will be installed in Sanmen of Zhejiang Province and two in Haiyang City, eastern Shandong Province. William Poirier, vice president of Nuclear Power Plants China of Westinghouse Electric Company, said China has a sound nuclear power security system with a strict supervision work. He said he believed China can replicate the experiences of the third-generation nuclear power technologies and build more such stations. China's mainland has 11 nuclear reactors at six plants, all on the east coast, with a combined installed capacity of 9.07 million kw. To meet its fast economic growth, China plans to develop more nuclear power. The country plans to have 40 million kw of installed nuclear capacity on its mainland by 2020, which would be4 percent of projected electricity supply capacity, or double the current level. Of the 11 reactors, three use domestic technologies, two are equipped with Russian technology and four with French technologies, and two are Canadian designed. All the 11 reactors employ second-generation nuclear power technologies. Speaking at Sunday's inauguration ceremony of the first-phase project of the Sanmen Nuclear Power Plant, Chinese Vice Premier Li Keqiang urged making more efforts to develop new energy to ensure the country's energy security and boost economic growth. He underscored innovation as the key to nuclear power development, calling for enterprises to adopt advanced technology and enhance self-innovation. He said it was inevitable that China would need to improve energy structure and enhance energy conservation and emission cuts when resources and environment issues took their toll on economic development.
BEIJING, March 27 (Xinhua) -- Chinese President Hu Jintao said here Friday that the "good situation" in today's Tibet was "hard-earned and should be highly cherished." Hu said during his visit to an exhibition marking the 50th Anniversary of Democratic Reform in Tibet, at the Cultural Palace of Nationalities in Beijing, that the reform 50 years ago was "the most extensive, profound and progressive social transformation in the history of Tibet." All the nine members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee visited the exhibition, including top legislator Wu Bangguo, Premier Wen Jiabao, and top political advisor Jia Qinglin. Chinese President Hu Jintao, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, visits an exhibition marking the 50th Anniversary of Democratic Reform in Tibet, at the Cultural Palace of Nationalities in Beijing, capital of China, on March 27, 2009 The exhibition, opened on Feb. 24, 2009, showcases archives, cultural relics, photos, videos, and restored landscapes that have recorded the great changes Tibet has gone through since 1959, when serfdom was abolished. The exhibits show that Tibet has been a part of China since the Yuan Dynasty (1271 to 1368 A.D.). Also exhibited are scenes of surfs being exploited by their owners in the old times and how they were liberated 50 years ago. The exhibition puts on videos recording the March 14th Riot in Lhasa last year and the major projects the Chinese government has sponsored in the plateau, such as the Qinghai-Tibet Railway and the Tibet Gymnasium. It also includes photos about Tibetan people's lives today. When visiting the exhibition, Hu stressed that, only by staying in the big family of the motherland under the leadership of the CPC, can the economy and society of Tibet develop by leaps and bounds, and the people of Tibet be the owner of the country together with other Chinese ethnics. Tibet should speed up economic development and further improve the living standards of people living there, especially the peasants and herdsmen, Hu said. Hu also said that Tibet should move from being "basically stable" to "peaceful and stable in the long run." The exhibition, co-organized by the State Council Information Office, the State Ethnic Affairs Commission and the Tibet Autonomous Region, has attracted about 137,000 visitors since its opening.
JEJU, ROK, April 4 (Xinhua) -- Li Changchun, a senior official of the Communist Party of China (CPC), unveiled a new Confucius Institute here Saturday soon after his arrival. Li, a member of the Standing Committee of the Political Bureau of the CPC Central Committee, cut the ribbon for the Republic of Korea's 13th Confucius Institute, the Chinese-teaching institution overseas. The institute was set up in Cheju Halla College, the largest private institute of high learning in Jeju Special-Governing Province of the Republic of Korea (ROK). When addressing the opening ceremony, Li said that China and ROK were inter-linked geographically and culturally. "The cultural exchanges boast profound historic foundation and favorable realistic environment," he said. Li Changchun (L2), a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, unveils the Confucius Institute set up in Cheju Halla College, in Jeju, the Republic of Korea (ROK), April 4, 2009During the past centuries, the peoples of China and ROK learn from each other, thus contributing to the development of the colorful culture in East Asia, Li said. "With concerted efforts made by both, I believe that the cultural exchanges between our two countries will see even more vigorous growth, making active contribution to the development of China-ROK strategic and cooperative relations," he said. Jeju is known for its natural scenery and become a major tourist destination for Chinese travelers. "I think the new Confucius Institute can surely add a new human landmark to the beautiful natural vista in Jeju," he said. Li also donated a batch of Chinese language teaching textbooks, books on Chinese history and culture and some audio-video materials to the institute. The world's first Confucius Institute was launched in Seoul, capital of the ROK, in December 2004. By March 2009, some 256 Confucius Institutes and 58 Confucius Classrooms were set up in 81countries and regions worldwide. Li arrived in Jeju earlier Saturday. ROK is the last leg of Li's four-nation tour which has already taken him to Australia, Myanmar and Japan.
GUANGZHOU, Feb. 6 (Xinhua) -- Millions of migrant workers from rural areas in China are expected to enjoy their golden years with pensions, like the urbanites do, as the country's top social security authority has planned to help them systematically gain access to the service. A document released Thursday by the Ministry of Human Resources and Social Security to solicit public opinions said migrant workers could move their pension accounts from one place to another when they move, a practice that is currently banned for lack of proper regulations. "With the new rule, I can get pensions like urban elders when I am old," said Liu Xinguo, a migrant worker who comes from central Hunan Province. He is now working in a property management company in Guangzhou, capital of Guangdong Province. The proposed rule stipulates migrant workers who have joined pension plans can continue their pension accounts as long as they get pension premium payment certificates in their previous working places. Currently, Liu himself puts 100 yuan per month into his pension account while his company contributes 180 yuan on his behalf. "If I withdraw my pension account, I will no longer get the company's input in my pension account," said Liu, who has been working in Guangzhou for more than a decade. In fact, many migrant workers who have had pension accounts, have chosen to withdraw their accounts before they leave the place where they work and plans to work in other places. They only get the fund they have paid and cannot get the company's part in the accounts. Tang Yun, who comes from Jiangxi Province and is now in Dongguan City, Guangdong, is an example. Four months ago, Tang joined the pension plan in Dongguan. But now he plans to go to Shenzhen to find a new job. He had to withdraw his pension account and only got some 600 yuan in cash from the account. "I had no choice but to withdraw as the pension account could not go to Shenzhen," said Tang, who has been working in Guangdong for 8 years. However, with the new regulation, migrant workers will no longer face the same problem again. "It is a breakthrough in the pension system for migrant workers," said Cui Chuanyi, a rural economy researcher of the Development Research Center under the State Council, or cabinet. The new method removes the fundamental hurdles for migrant workers to join pension plans and protects their rights and interests, said the researcher. According to figures with the Ministry of Human Resources and Social Security, China has some 230 million migrant workers. By the end of last year, only 24 million joined pension programs. In addition to the transfer ban, high pension premiums present a challenge to the small number of migrant workers who do carry pension plans. According to the country's current regulations, the pension premium for urban workers include the employer's payment of 20 percent of an employee's salary and the employee's payment of 8 percent of his or her salary. The new rule says employers will pay 12 percent of employees' salaries and the employee will pay 4 to 8 percent of their salaries to meet the pension premiums. "The new rule will reduce the burden of companies and migrant workers in pension premium payment," said Cui Chuanyi. "That will encourage more companies to support the establishment of pension plans for migrant workers." The new regulations will also make it is easier for migrant workers to accumulate the 15 years of pension premium maturity required for receiving pensions, as the pension premium terms will be added when they move from place to place. In the past, the maturity was reset each time they withdrew. Chen Xinmin, a professor at South China Normal University, said from the point of view of narrowing the rural-urban gap, the adjustment of the pension system for migrant workers would have a far-reaching impact. "Given the fact that migrant workers have become a major part of China's industrial workforce, the new rule means a significant step forward to eliminating urban-rural differentiations and improving farmers' welfare," said the scholar. The upcoming revision of the pension system for migrant workers will also accelerate the urbanization process in China, said Chen. An official with the Ministry of Human Resources and Social Security said Thursday the country was also planning to set up a national social security information consultation system starting with migrant workers. The system will use the identity card number of a citizen as his or her life-long social security card number.