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BEIJING, Feb. 17 (Xinhua) -- China's new rules for reviewing proposed mergers and acquisition (M&A) deals by foreign firms on grounds of national security would benefit both Chinese and foreign investors, a Ministry of Commerce (MOC) spokesman said Thursday.The rules will facilitate the growth of foreign-invested enterprises (FIEs) in China and improve the quality and structure of foreign direct investment (FDI) flowing into China, MOC spokesman Yao Jian said at a press conference.The move also marked an improving legal environment for the security of China's business sector along with its opening-up drive, given that M&A by FIEs will increasingly become a trend in the coming years, Yao said."The adoption of the rules in China will also increase policy transparency and improve law-based government administration," said Yao.Yao's words came after the State Council, China's Cabinet, announced last Saturday that it was establishing a panel to check whether M&A deals struck by foreign firms in the country endanger national security.The panel will review attempts by FIEs to buy or merge with domestic companies whose business pertains to national defence, agriculture, energy, resources, key infrastructure, transport systems, key technology sectors and important equipment manufacturing industries, according to a statement published on the central government's website www.gov.cn.The review will be conducted by a foreign investment security review board under the cabinet, members of which come from the National Development and Reform Commission (NDRC), the MOC and other agencies.The new regulations, which take effect in March, come at a time when China is expected to see more M&A deals struck by foreign firms.Currently, inward M&A accounts for about 3 percent of China's total FDI, a sharp contrast with the global average level of more than 70 percent, said Yao. "M&A by FIEs will become a major trend in China."China's taking in FDI through more M&A will promote industrial consolidation and restructuring, and it will also mean more efficient utilization of the existing resources, he said."As the share of M&A in the FDI will probably rise from the current 3 percent to 8 percent, 10 percent or even more, it is necessary to timely formulate China's own rules governing foreign takeovers in line with international standards," Yao said.In April 2010, the State Council said in a statement that foreign investment should be allowed to be more diversified and foreign investors encouraged to participate in the consolidation and restructuring of domestic firms via equity holdings or acquisitions.He Manqing, a researcher with the Chinese Academy of International Trade and Economic Cooperation of the MOC, said "It is right and proper to impose regulations and requirements on proposed M&A deals in the sectors of strategic importance and those involving national security.""The introduction of the regulations conforms to the new trend in China's receiving of FDI and indicates that China's regulations on FDI are becoming more mature," said He.The NDRC said Wednesday that national security scrutiny would only occur when foreign companies take a majority stake in a domestic M&A deal, meaning that a minority stake purchase will not trigger a review."The new rules draw references from similar rules in the United States, Germany and Canada," the NDRC said in a statement on its website.The NDRC also said that the new regulations were in line with World Trade Organization rules and did not imply that China had changed its policies on opening up and attracting FDI.China's FDI jumped 23.4 percent in January to 10.03 billion U.S. dollars, said Yao. The monthly growth rate was up from December's 15.6 percent.As the world's top investment destination, China received a total of 105.74 billion U.S dollars in FDI in 2010, up 17.4 percent year on year, the MOC said last month.

SAN FRANCISCO, May 26 (Xinhua) -- Internet advertising revenues in the United States surged to 7.3 billion U.S. dollars in the first quarter of 2011, the highest first-quarter revenue level on record for the industry, said a new report released on Thursday.The numbers also represented a 23-percent increase over the same period a year earlier, the Interactive Advertising Bureau ( IAB) and PricewaterhouseCoopers said in the report."The consistent and considerable year-over-year growth we're seeing demonstrates that digital media is an increasingly popular destination for ad dollars, and for good reason," Randall Rothenberg, chief executive officer of the IAB, said in a statement."As Americans spend more time online for information and entertainment purposes, digital advertising and marketing has emerged as one of the most effective tools businesses have to attract and retain customers," he added."These numbers indicate that the interactive advertising field hasn't simply bounced back since the recession; it's growing with dynamic energy," noted David Silverman, a partner at PricewaterhouseCoopers.IAB, a trade association for interactive marketing, comprised more than 500 media and technology companies who are responsible for selling 86 percent of online advertising in the United States.

BEIJING, Feb. 12 (Xinhua) -- China's recent revocation of a national scientific award due to academic fraud has been welcomed by the public, but experts warn the country still has a long way to go to bring an end to such dubious academic practices.On Feb. 1, China's Ministry of Science and Technology, revoked the State Scientific and Technological Progress Award (SSTPA) given to Li Liansheng, former professor of Xi'an Jiaotong University in 2005.An investigation found Li had plagiarized others' works and fabricated data in his winning project, a research on key technologies for designing and manufacturing scroll compressors. Li was investigated after the science ministry received tip-offs from six professors (including four retired) in his university.The ministry subsequently canceled his prize and retrieved the money awarded.Zhao Baojing, a senior official with the National Office for S&T Award, told Xinhua it was the first time China had withdrawn a national scientific honor.The revocation soon sparked pubic discussion over academic integrity. Tan Gang, a citizen in Shenzhen, wrote on his microblog, "Though the revocation came a bit late, it is progress. It's a warning against academic misconduct."Shi Ying, vice director of Shanxi Academy of Social Sciences, said, the move demonstrated China's "zero-tolerance" for academic fraud, and would help clean up the academic field."However, academic fraud is still rampant, which not only damages academic integrity, but also harms the innovative capacity of China in a broader sense," said Shi.Anti-fraud activist Fang Zhouzi, who runs a website on anti-academic fraud from his Beijing home, said "This is by far the harshest stance China has ever taken against academic fraud, which should be viewed as progress." He so noted China still has a long way to go in the fight against academic fraud.Fang said, the science ministry's move does not mean China is really cracking down on academic fraud. The plagiarist might have not been found out if it were not for years of unyielding efforts made by the six professors.The scandal again highlights that academic fraud is alive and well in China. A survey conducted among 30,078 respondents in 2009 by the China Association for Science and Technology (CAST) showed that nearly half of the science-related workers in China's research institutes, universities, medical institutes and hospitals think academic cheating is "common."Fang attributed the prevalence of academic fraud in China to lax punishments and loopholes in the academic evaluation system.Zero tolerance of academic fraudChina's science minister, Wan Gang, said on several occasions "We hold zero tolerance for academic fraud."However, Fang said "zero tolerance" was a slogan rather than the actual case. Many cases of academic fraud, even publicly exposed, were "tolerated" eventually. "Lax punishment makes academic fraud less costly."

BEIJING, Jan. 30 (Xinhua) -- As of Jan. 28, 77.4 million mu (5.16 million acres) of crops had been harmed by the ongoing drought, and 2.57 million people were faced with drinking water shortages in China, the national drought control authorities said Sunday.Local governments of the affected regions must make efforts to monitor drought conditions, speed up the building of water projects, increase drought-fighting material reserves and grant subsidies to the drought-stricken population, said officials at a meeting attended by Chen Lei, deputy head of the Office of State Flood Control and Drought Relief Headquarters (SFDH).The National Meteorological Center (NMC) forecast the drought to worsen in the next two months, saying Sunday that the drought-hit north China and regions along the Yellow and Huaihe rivers would receive little rain or snow in February and March.Chen, also minister of water resources, stressed the importance of drought relief efforts, guaranteeing agricultural production and ensuring drinking water safety for boosting consumers' confidence, controlling consumer prices and inflation and maintaining economic growth.Since last Autumn when the drought began, local authorities have assigned 9.55 million people and 2.15 million sets of drought-fighting machineries to draw 8.2 billion cubic meters of water to irrigate 110 million mu of crop land.

BEIJING, Feb. 18 (Xinhua) -- China needs to reform funding methods for scientific and technological research in order to boost the nation's innovation capabilities, said officials and researchers attending a conference in Beijing Friday.The management of the government-funded research projects should also be reformed, State Councilor Liu Yandong said at the national conference on science and technology work.Liu stressed that reform, innovation and cooperation should be the keys for China's science and technology work over the next five years, when the government would increase funding for research in new strategic industries, such as new energy, biomedicine and high-end manufacturing.Last year, central and local government spending on science and technology development totaled 380 billion yuan (57.8 billion U.S. dollars), Science and Technology Minister Wan Gang said at the conference.Over the past five years, central government spending on science and technology development had grown by around 20 percent annually.However, some researchers have complained problems in the funding system actually hinder innovation and progress.Inflexibility in the management of government funds allowed researchers little freedom to adapt projects to developments in their fields, said Li Zhenzhen, a researcher at the Institute of Policy and Management under the Chinese Academy of Sciences (CAS).Chen Jie, a research fellow of the CAS' Institute of Microelectronics, said some authorities which oversee the spending of research funds had been rather rigid."In some cases, they are more interested in spending most of the funds on new equipment than scientists," Chen said in an earlier interview with Xinhua. "Without decent pay, it is difficult to attract top scientists to work in China.""Having to solicit and lobby for funding to support the team's research projects leaves me no more than five hours a day for real research," Chen said.Top-level scientific brains are the key to the innovative capability of China, he added.A researcher attending Friday's conference echoed Chen's opinion."China manufactures 65 percent of the world's computers. But to my knowledge, we are still spending about 150 billion U.S. dollars annually to buy computer chips from overseas," the researcher told Xinhua on condition of anonymity.Wan Gang also said imported computer chips cost China more than crude oil purchases last year.But Wan believed that with breakthroughs in frontier areas such as cloning, manned space flight, moon exploration and supercomputers, China could expect a leap in science and technology development in the near future.In October last year, China successfully launched its second lunar probe, Chang'e-2.A month later, Chinese supercomputer Tianhe-1A, which can perform 2.57 quadrillion computing operations a second, was ranked the world's fastest in the TOP500 list compiled by U.S. and European researchers.