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BEIJING, Oct. 18 (Xinhua) -- China should pay more attention to its grain security in rural reform, said Jia Qinglin, the country's top political advisor, here on Saturday. It should be a top priority to maintain grain production when the country develops modern agriculture, said Jia, chairman of Chinese People's Political Consultative Conference (CPPCC) National Committee, when the third meeting of the CPPCC National Committee's Standing Committee concluded here. "China should stick to the most strict system to protect farming land." During the four-day meeting, senior political advisors reviewed the decision on rural development and reform made at the third Plenary Session of the 17th Communist Party of China (CPC) Central Committee. They exchanged views and presented valuable ideas on rural reform, said a statement issued after the meeting. "We should realize new situations and problems China faces in rural economic and social development, as well as urgency and responsibility to push forward rural reform," Jia said. The CPPCC would work on proposals on system building, agriculture and public service development in rural areas. He also asked political advisors to watch and study the global financial turmoil's impact on the domestic economy and contribute their talent to the administration.
GUANGZHOU, Oct. 20 (Xinhua) -- Chinese exporters, faced with dwindling foreign orders amid global economic slowdown, are diverting their attention to domestic markets. At the ongoing Canton Fair, China's leading trade fair, businesses that canvass foreign buyers are also focusing on the local market as their customers in the Western nations are dragged into recession by the global credit crisis. Qiao Guan, board chairman of the Jiangsu Hotwind Sauna Equipment, said his company is planning to divert some of the business from abroad to the domestic market. The company's sales in the United States, which accounted for about 30 percent of its total exports, had dropped by more than 20 percent this year, Qiao said. He hoped the local sales could compensate the decreasing orders in the foreign market. "We have completed research on the domestic market, which shows some exported goods are affordable and have good sales prospects in the local market," he said. The Himin Solar Energy Group, based in east China's Shandong Province, produces solar water heaters that are sold both at home and abroad. Xue Xinwen, head of the firm's international trade department, said the company had been losing orders as some Western countries canceled subsidies on environment-friendly imports. "We have sent more staff to market our products to local infrastructure authorities and companies," he said. "Domestic consumption has been greatly boosted by a robustly growing economy, creating positive situations for exporters to go local," he said. But the readjustment can be difficult. Li Jianlan, a worker with Wanji Plumbing Materials Co. Ltd, based in Ningbo, said an exclusive exporter like her company lacked channels and brand loyalty in the domestic market. "These are two different kinds of markets, and it takes a lot of work to be familiar with the ways business is done with local buyers," she said. Some goods that are made for export are deemed too expensive for Chinese buyers. Huang Yan, general manager of the L-bright Export Manufacture Corporation, said it had been very difficult to sell its products to domestic buyers as they lacked a price advantage. Local governments, aware of the trend, are taking action to encourage the conversions. Guangdong Province, the country's major exporting base, issued a notice in June, ordering local quality inspection authorities to provide needed technical assistance to exporters.
BEIJING, Dec. 1 -- Amid the coupling effects of shrinking global demand and rising operating costs, it has been a dramatic upheaval this year for domestic small and medium-sized enterprises (SMEs) after China started its reforms 30 years ago. Even as the scene appears a bit scary, there is still a ray of hope if only entrepreneurs note the writing on the wall and go all out to cut costs before they raise the clamor for a bailout.Two women make beds on a production line of the small private firm Nangang Shoemaking Factory in Foshan, Guangdong province.In the first half of 2008, much before the world saw the capital markets going topsy turvy amid the global economic slowdown, over 67,000 SMEs in China went bankrupt, while more than 10,000 labor-intensive textile enterprises downed shutters, according to figures from the Department of SMEs under the National Development and Reform Commission. In October, 714 companies were closed in Dongguan in Guangdong province, home to over 60,100 private companies and a major manufacturing center in China. "We will see more companies closing in the coming months, with the figure likely to cross 1,000 after Christmas," says Dongguan Deputy Mayor Jiang Ling. Most of the international buyers of Chinese products failed to get letters of credit in October leading to significant cancellations of Christmas orders, says Frank FX. Gong, chief China economist at JPMorgan Securities (Asia Pacific) Limited in a recent report. "Indeed, 'things suddenly ceased' was the common comment we heard on the ground lately," he says. But for some like Luo Chun, sales director of tin box maker Dongguan Tinpak Co, the freeze on Christmas orders has not yet meant closing. Luo says overseas order fell by 10 percent from June to October, normally the peak time for Christmas orders.
BEIJING, Nov. 2 (Xinhua) -- China's economy is in good shape despite the changing economic environment, and it will maintain stable and relatively fast growth, National Bureau of Statistics (NBS) chief Ma Jiantang told Xinhua on Sunday. "The fundamentals of China's economy remain unchanged despite the changing world economic environment," the new NBS director said. "We should be confident about the country's economic outlook." The world's fastest economic growth rate, successful commodity price controls, increasing foreign exchange reserves and good employment rates were the factors to support the economic fundamentals, said Ma. The consumer price index (CPI), the main gauge of inflation, eased to 4.6 percent in September from the same period last year. It hit a 12-year high of 8.7 percent in February. The country's gross domestic product (GDP) grew by 9.9 percent in the first three quarters, 2.3 percentage points down from the same period last year. The slowdown was a result of combined effects, including the global financial crisis, the world economic downturn and severe domestic natural disasters, Ma said. However, he said, "We should be confident about the country's economic outlook." The country had rich resource reserves, great market potential, vigorous enterprises and the government had strong macro-control abilities. The government had made a series of macro-economic policy adjustments against the changing economic environment, which would guarantee a steady and sound economic development, he said.
BEIJING, Nov. 15 (Xinhua) -- Chinese Premier Wen Jiabao on Saturday outlined a series of proposals for local governments to support small and medium-sized enterprises (SMEs). Touring SMEs in the southern province of Guangdong, Wen said SMEs would play a crucial role in promoting economic growth, increasing fiscal revenue, providing jobs and maintaining social stability. Chinese Premier Wen Jiabao (2nd L) inspects a medium-sized enterprise in Dongguan of south China's Guangdong Province, Nov. 14, 2008Wen visited SMEs in Shenzhen, Dongguan and Foshan cities, where he demanded local governments to readjust and improve policies to support the healthy and rapid growth of SMEs. Measures should include easier access to credit extensions as well as preferential tax policies, and more loans to ensure SMEs grow faster in the fourth quarter. Financing priority should be given to SMEs that met industrial and environmental protection standards and had technologies and markets, and should encourage firms to transform and restructure. Wen said SMEs in Shenzhen performed better than those in other parts of the delta because they upgraded and innovated. On Friday afternoon, while inspecting export-oriented, labor-intensive SMEs in Dongguan, he said the key to survival and growth was to develop new products, increase product ranges, improve quality and diversify markets.