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BRUSSELS, Oct. 7 (Xinhua) -- Visiting Chinese Premier Wen Jiabao has elaborated China's positions and perspectives on various issues, including the Chinese yuan appreciation and the investment environment, at the sixth China-Europe Business Summit and other occasions.At the business summit held Wednesday, Wen said China's trade surplus was explained by the specific structures of the economies involved in international trade instead of the exchange rate of the yuan."The trade issue should not be politicized. It is an issue of the (trade) structure," the premier said.He said China was never in pursuit of trade surplus, but in pursuit of balanced and sustainable trade. Chinese Premier Wen Jiabao addresses the 6th China-European Union Business Summit in Brussels, capital of Belgium, Oct. 6, 2010.The world will by no means benefit from an appreciation of the yuan by 20 percent to 40 percent -- as the U.S. has demanded -- because it will damage the Chinese economy, and the Chinese economy contributed about 50 percent of the global economic growth last year, according to him.Wen urged the European entrepreneurs not to pressure China on the yuan's appreciation, saying China "will stick fast to the exchange rate reform. We will gradually allow more flexibility in the yuan exchane exchange rate."He assured European investors of a good investment environment in China, saying China would stick to its reform and opening up policiesHe said foreign businesses operating in China will enjoy the same national treatment as Chinese enterprises do on issues related to intellectual property, independent innovation, and government procurement.Also on Wednesday, Premier Wen attended the 13th China-EU Summit, co-chaired by him, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso.

HAIKOU, Oct. 7 (Xinhua) -- More than 130,000 people were evacuated after more than 550 villages were submerged by floods by Wednesday afternoon in southern China's island province of Hainan, local authorities said late Wednesday.The torrential rains are the heaviest in Hainan since 1961, a spokesman for the provincial government said.Water levels at five reservoirs are now in danger of crossing their limits because of heavy rains across the island. Rescuers are working to reinforce them, the official added.The floods have damaged two highways, two national routes, eight provincial routes along with several other roads.So far, no casualties have been reported among tourists, the official said.Torrential rains have battered many areas of Hainan for six days. Several cities, including the provincial capital of Haikou and the beach resort of Sanya, have also suffered flooding. The four cities of Qionghai, Wanning, Ding'an and Haikou were most seriously hit. Parts of the island received an average 324.7 mm of rainfall.Hainan Island is a famous tropical tourist resort and attracts millions of visitors every year. However, tourist numbers were reported to be down by nearly 50 percent Wednesday, the sixth day of the one-week holiday celebrating National Day on Oct. 1.The rains are expected to weaken but continue until the end of the seven-day holiday, an official at the provincial meteorological observatory said Wednesday.

SHANGHAI, Oct. 23 (Xinhua) -- An official of one of China's top government think tanks called on Saturday for the readjustment of the nation's breakneck expansion of the auto industry as an explosion of new cars on China's roads aggravates problems with pollution and congestion.Liu Shijin, deputy director of the Development Research Center of the State Council, told a forum that the government should shift its guidance to automakers from mere pursuit of output capacity to environment-friendly and energy-saving targets.Also, auto manufacturers should strengthen their safety and quality control standards, he said.Sales of domestically-manufactured autos rose 36 percent year on year to reach 13.14 million units in the months through September, as lower-priced automobiles have become more affordable for better-off Chinese people, according to data released by the China Association of Automobile Manufacturers (CAAM) on Oct. 12.In fact, annual sales and production could exceed 17 million, CAAM said.Although the expansion has brought an industrial boom to the country and boosted domestic demand, it has also triggered widespread concerns over the country's energy capacity, pollution levels and notorious traffic jams.In Beijing, the increasing number of private cars, along with heavy rainfall and a spurt in holiday travel, caused a record 140 traffic jams on a single Friday evening last month. In some parts of the city on that day people spent nearly two hours on what would normally have been a 15-minute commute.Further, Liu said increasing social problems arising from the country's industrial boom has made its future development unsustainable, which is a test for the government.He also suggested government allow market forces to play a larger role in allocating resources, and also permit uncompetitive producers to be phased out.