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BEIJING, March 6 (Xinhua) -- A 17 percent year-on-year increase in China's broad money supply, and a target of 7.5 trillion yuan (1.1 billion U.S. dollars) for this year, indicated a relatively easy monetary policy, said Su Ning, deputy governor of the People's Bank of China, the country's central bank.Speaking on the sidelines of the ongoing annual session of the top legislature, the National People's Congress (NPC), Su said the 17 percent increase in the nation's broad money supply was larger than the combined increase of targeted GDP and CPI growth, which suggested an "easy" monetary policy."If M2 (the broad measure of money supply) growth is 2 to 3 percentage points higher than the combined growth of GDP and CPI, the monetary policy could be seen as easy," said Su.Chinese Premier Wen Jiabao said Friday, in the government work report submitted to the NPC, that China targeted an approximate 3 percent rise in consumer prices and 8 percent GDP growth this year.Su further believed the 17 percent increase in the broad money supply would be able to support the ongoing economic recovery throughout the country.China's financial institutions lent a record 9.6 trillion yuan in new yuan-denominated loans last year, almost double that of the previous year, to spur the economy amid the global downturn, but it was accompanied by soaring property prices and rising expectations of possible inflation.Su said the 7.5 trillion yuan in new lending this year should speed up completion of projects under construction, rather than support new projects.

BEIJING, Feb. 2 (Xinhua) -- China should further step up social spending to push forward reforms such as health care, welfare and education to sustain its economic growth, the Organization for Economic Co-operation and Development (OECD) said in a report on Tuesday.Although China's reforms have increasingly focused on the need for social cohesion in recent years, said the report, more efforts are still needed in various areas to improve people's living standards over a longer term.The fragmented system of welfare assistance, pension and health care should be unified, it said, stressing reforms on health care should be continued so as to ensure that provision at local levels is improved and eventually the different insurance systems are unified, it said.It also said China's registration system and restrictions on migrant workers' access to social services create obstacles to labor mobility, therefore should be relaxed.OECD groups 30 nations, mostly wealthy European countries, along with Canada, the United States, Japan, Australia, New Zealand, the Republic of Korea, Mexico and Turkey.The report, the second of its kind since 2005, said China is now leading the world economy out of recession with the help of the massive stimulus package."The Chinese government's swift and vigorous action to support its economy has contained the impact of the global recession," said Pier Carlo Padoan, chief economist and deputy secretary general of the OECD.China may overtake the United States to become the leading producer of manufactured goods in the next five to seven years, the report said.However, Zhang Zhigang, chief economist of the Center for International Economic Exchanges, said that to well study China one should not be confined to consider the country's aggregated economic volume but take into account the per capital economic volume, as China is a very populous nation of 1.3 billion people."It is true that China is capable of putting man in space, but on the other hand, in much of its underdeveloped inland areas, oxen are still used to plough the farm", said Zhang at a ceremony to launch the survey.While stressing the rapid expansion of the Chinese economy, the report also touched upon some of the weak points China faces, including the country's over-reliance on foreign-sourced technology embodied in foreign direct investment.The contribution added-value made to research and development was only one-tenth of that in the United States in 2005, according to the 232-page survey.As for financial and monetary issues, it said China will "eventually require a flexible exchange rate regime with open capital markets".Greater flexibility of the yuan exchange rate could not be achieved in a short period of time and it requires a step-by-step approach with supporting reforms in the financial areas, said Padoan in an interview with Xinhua.

BEIJING, March 5 (Xinhua) -- Premier Wen Jiabao Friday called for the mainland and Taiwan to enhance mutual political trust and strengthen the political foundation for a peaceful relationship.The mainland and Taiwan should uphold the principle that the two sides belong to one and the same China, Wen said in the government work report at the annual session of the National People's Congress, the top legislature.Wen hailed the progress made in mainland-Taiwan relations during the past year, saying that continuous improvement has brought real benefits to the people.Ties across the Taiwan Strait have warmed up in recent years, with the realization of direct air and sea transport links and postal services.The two sides are also negotiating about an economic pact, the Economic Cooperation Framework Agreement (ECFA), which aims at normalizing trade and investment links.Wen said in the report that a unique economic cooperation mechanism would be established through negotiating and signing the ECFA.In an online chat with Internet users on Saturday, Wen said the mainland is willing to make concessions when negotiating."The reason is very simple: Taiwan compatriots are our brothers," he said.

ISTANBUL, Jan. 26 (Xinhua) -- Chinese Foreign Minister Yang Jiechi, who attends a regional summit on Afghanistan here as the special representative of Chinese President Hu Jintao, pledged that China, as a neighbor that shares friendship dated back to antiquity, will continue to support Afghanistan's reconstruction."China has actively supported, promoted and participated in Afghanistan's post-war peace and reconstruction effort. Look ahead, China will continue to give support to Afghanistan within its capacity," Yang said in his remarks at the Istanbul Summit on Friendship and Cooperation in the Heart of Asia.Yang noted that since 2002, China has cancelled all mature debts owed by the Afghan government and provided a total of more than 900 million yuan (about 132 million U.S. dollars) grant assistance.He said China has launched a large number of assistance programs in Afghanistan to help improve people's lives, including a series of big projects such as the Jomhuri Hospital (Republican Hospital) and the Parwan irrigation project, which have made a positive impact in the country's reconstruction process.China has also trained more than 500 Afghan government officials in a broad range of areas, including diplomacy, economy and trade, medical and health care, finance, tourism, agriculture and counternarcotics, according to Yang.China announced last year it will turn all its previously committed 75-million-U.S. dollar concessional loans into grant assistance, to be provided to Afghanistan over a five-year period.Yang said the first tranche of funds was already delivered in 2009, and the remaining 60 million U.S. dollars will be made available in the coming four years."In addition, we will keep on assisting Afghanistan in such areas as vocational training and human resources development," Yang added.Hosted by Turkey, the Istanbul summit was also attended by Afghan President Hamid Karzai, Pakistani President Asif Ali Zardari, Turkish President Abdullah Gul, Iranian First Vice President Mohammad-Reza Rahimi and Tajikistan Foreign Minister Hamrohon Zarifi.Yang said China highly appreciates Turkey's efforts in addressing the issue of Afghanistan and supports the tripartite cooperation among Turkey, Afghanistan and Pakistan.He praised the progress Afghanistan has made in its reconstruction."Over the past eight years, we have seen how the Afghan people have risen to challenge and worked unyieldingly to rebuild their country. Afghanistan has gradually recovered from the traumas of war and scored commendable achievements in institution building, economic development and external relations," Yang said.He hailed that the successful presidential election held by the Afghan people in 2009 was of special significance, as it marked an important step forward towards the goal of "Afghanistan run by the Afghans."However, Yang pointed out that Afghanistan still faces many daunting challenges, as the security situation remains volatile, the process of economic reconstruction is slow and people's livelihood needs urgent improvement."Afghanistan is at a critical juncture," said Yang, calling on countries in the region and the international community to step up efforts to support Afghanistan. He made a four-point proposal in this regard.He said the countries in the region, having special associations with Afghanistan due to geographical, religious, ethnic and linguistic reasons, should bring into full play our advantages and get actively involved in Afghanistan's reconstruction process.The countries should accord top priority to Afghanistan's capacity building and human resources development and, under the principles of mutual respect, equality and mutual benefit, engage in result-oriented cooperation with Afghanistan in such key areas as transport and trade facilitation, energy, communications, drug control and education, he said.He advised to increase communication to ensure that relevant mechanisms and initiatives are viable, practical and efficient and can play a positive role in bringing about an early solution to the Afghan issue.Yang also stressed the need to always remember to fully respect the independence of Afghanistan and the imperativeness to respect the leading role of the United Nations in coordinating international efforts."We sincerely hope that with the hard work of the Afghan government and people and the strong support of the international community, a peaceful, stable and independent Afghanistan that enjoys development and good-neighborliness will emerge in the world," Yang said.Tuesday's summit issued a statement in which Afghanistan's neighboring countries said they back the war-torn country's plan to reconcile with moderate Taliban forces as Karzai is seeking international support for the program."(We) support, therefore, the Afghan national process of reconciliation and reintegration in accordance with the Constitution of Afghanistan in a way that is Afghan-led and - driven," said the statement.

BEIJING, Feb. 6 (Xinhua) -- The Chinese Central Government has sent eight inspection working groups to 16 provincial areas nationwide to prevent the melamine-tainted milk powder, which killed at least six in 2008, from being reclaimed illegally in producing milk products.Leftovers of milk powder contaminated by melamine were sealed in 2008 and required to be destroyed, but some might have been used as raw materials for diary products illegally in certain areas, according to local police.Police in Shaanxi Province on Thursday publicized a case on illegal use of leftovers of melamine-tainted milk powder.An initial investigation showed 10 tonnes of tainted milk powder leftovers were sold to a local diary producer Lekang Company in September and October in 2009. Three suspects were arrested.Three suspects from the Shanghai Panda Dairy Company were prosecuted in December 2009 on suspicion of using leftovers of melamine-laced milk powder in milk products. Local police said all the company's products had been recalled and caused no serious harms to the consumers.China's food safety authorities on Feb. 1 launched a 10-day checks for melamine-tainted milk products across the country.However, the string of problems gave another blow to China's efforts to restore confidence in its dairy products.The melamine-laced milk products scandal in 2008 killed at least six infants and sickened 300,000 children across the country.Any illegal practices concerning food safety would be punished severely, an official with the National Food Safety Rectification Office led by Health Minister Chen Zhu said earlier this week.The quality watchdog of Xi'an, capital of Shaanxi Province, has carried out food safety inspection on 73 batches of different brands of milk products and has not found problems.The northeastern Jilin provincial government kicked off a milk product safety check at the end of January."We must do our best to retrieve and destroy milk products that have quality problems. We can't stand a single pack of such milk powder to appear in market," said Zang Zhongsheng, head of the Jilin provincial administration for industry and commerce.There is no accurate figure on the amount of problematic milk powder that has not been destroyed in the 2008 milk products scandal. But in the bankrupt dairy producer Sanlu alone, more than 2,000 tonnes of melamine-tainted baby formula was sealed in 2008.Sanlu, based in Shijiazhuang in Hebei Province, suffered devastating losses and went bankrupt, standing in the spotlight of the melamine-tainted milk products scandal in 2008.How to destruct the melamine-tainted milk powder was still a tough nut to crack for many local authorities and dairy firms, according to industrial insiders.A number of experiments had been conducted to find a way to deal with the melamine-tainted powder in Shijiazhuang, but they all failed, according to a insider who declined be named."If we use the milk powder as fuels, it would cost much more to clean boilers than burning coal; if we use it as ingredients in cement, we could not get qualified products; if we just bury it, we worry someone might dig it out illegally as the volume is huge," the expert said."The milk powder piled like hills and people just don't know what to do," said Zhang Xingkuan, a lawyer who once handle cases on compensation for the scandal victims and frequently visited the dairy firms.It was more difficult to monitor small dairy firms, which were more inclined to use leftovers of tainted milk to cut cost, according to Wang Weimin, secretary-general of Xi'an Dairy Association."They will not do this when milk powder prices are low, but they will do this when milk powder prices soar," he said.To crack down on such practices, the Chinese government had vowed to investigate the case thoroughly and all factories that use prohibited materials in producing dairy products would be shut down with license suspended and punished severely.

来源：资阳报