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BEIJING, Dec. 16 (Xinhua) -- China issued rules for pilot programs of RMB Qualified Foreign Institutional Investors (RQFII) on Friday, formally giving a green light to investment of overseas RMB funds in mainland securities markets.The move is expected to widen the investment channel of overseas RMB funds and add new momentum to the country's bid to make the RMB an international currency.Hong Kong subsidiaries of fund management companies and securities firms can use RMB funds raised in Hong Kong to invest in mainland securities within a permitted quota, according to the rules jointly released by the China Securities Regulatory Commission (CSRC), the People's Bank of China and the State Administration of Foreign Exchange.The total investment quota of RQFII pilot programs is set at around 20 billion yuan (3.15 billion U.S. dollars), according to the rules.To control risks, qualified investors should invest no less than 80 percent of the RMB funds they raised in fixed-income securities, while investment in stocks and equity funds should account for no more than 20 percent.The CSRC will join other related departments to study the possibility of further expanding the trial program after its launch, said a CSRC official who declined to be identified.The launch of the RQFII will open another significant channel for overseas RMB funds to flow back into the country, said the CSRC official.It will also help diversify investment products for overseas RMB funds and facilitate off-shore RMB business, the official said.The RMB is not fully convertible under the capital account but China has stepped up efforts to make the currency more international over the past few years.The government has encouraged the use of the RMB in cross-border trade and investment settlement and approved foreign direct investment in overseas RMB funds obtained overseas.It also allowed Hong Kong to establish an offshore yuan market and has expanded trade settlement agreements and currency swaps to create more channels for the yuan to circulate outside the mainland.

VIENTIANE, Dec. 5 (Xinhua) -- Laos and China pledged on Monday to deepen military exchanges and cooperation, strengthen unity and friendship between the two countries'militaries and work together to maintain regional peace and stability.The vows came out of the meeting between the Lao Deputy Prime Minister, Minister of National Defense Douangchay Phichith, Lao Deputy Minister of National Defense Sanyahak Phomvihane and the visiting Deputy Chief of General Staff of the Chinese People's Liberation Army (PLA) Cai Yingting.Douangchay said the Lao side appreciates the Chinese side's long-term support and help which have contributed to the Lao social economic development and national defense building. The Lao Party, government and military attach great importance to developing relations with China, and are willing to make joint efforts with the Chinese side to further promote the two states and militaries' ties to a new level.Sanyahak said that no matter how changes in the international and regional situation, the solid traditional friendship between the two countries' people and militaries won't change. Laos is willing to cooperate with China closely, deepen communication and cooperation between the two militaries, and constantly strengthen unity and friendship of the two sides.Cai said that China and Laos are friendly neighbors, the peoples of the two countries have forged a profound friendship since ancient times. In recent years, the bilateral ties continue to see a healthier and stabler development, especially after the two countries have established a comprehensive strategic and cooperative partnership.The Chinese side will continue to maintain close high-level contacts with Laos, enhance substantial cooperation, and strengthen friendly coordination, in order to contribute to the bilateral ties, and regional peace, stability and prosperity, Cai added.The Cai-led Chinese PLA delegation arrived in Lao's capital of Vientiane on Monday at the invitation of the Lao Ministry of National Defense, kicking off their friendly visit to Laos.

BEIJING, Oct. 10 (Xinhuanet) -- China's small businesses turned to be the first to ring the alarm as the country is walking a fine line between fighting inflation and maintaining growth.Some entrepreneurs have disappeared and others have jumped off buildings almost every week since April in Wenzhou City, an entrepreneurial capital in eastern China's Zhejiang province, Xinhua reported.The sudden disappearance of the business owners has revealed a surprisingly gloomy picture for the small and medium-sized enterprises (SMEs) in China.RUNAWAY BOSSESAccording to a Xinhua investigation, at least 80 cash-strapped businesspeople in Wenzhou have skipped town or declared bankruptcy to invalidate more than 10 billion yuan (1.6 billion U.S. dollars) in debt.Just last month, two local entrepreneurs in Wenzhou killed themselves by jumping off the buildings and another broke his leg in a similar suicide attempt.The tragedies in Wenzhou are extreme cases of private SMEs struggling to survive a liquidity crunch amid the country's macro control policies set to curb inflation and cool down the over-heated property market.In Wenzhou, one-fifth of the 360,000 small and mid-sized businesses have stopped operating due to cash shortages, according to the city's council for small and medium-sized enterprises.Of the 855 companies surveyed by the Wenzhou Economic and Information Commission, more than 76 percent said they are almost out of money and are struggling to continue production.But many cash-strapped firms are unable to borrow money from banks, and some have turned to China's underground lending market to pool money from individuals and firms.The steep rates of the informal loans pushed some businesses to the brink of collapse.

ZHENGZHOU, Oct. 21 (Xinhua) -- A leading Chinese producer for quick-frozen snacks Thursday apologized for the production and sale of bacteria-contaminated dumplings and said that a recall was underway.A spokeswoman from Zhengzhou Sinian Food Co., Ltd. said they had confirmed the contamination of staphylococcus aureus, or golden staph, in its quick-frozen seafood and pork-stuffed dumplings.The company had started the recall and destruction of the contaminated products, said Lin Xiaohong, a marketing executive of the company, adding that an investigation into the source of the contamination was underway.The statement came after authorities in Beijing announced they had detected golden staph from one batch of dumpling products by the Henan-based company. The bacteria can cause various diseases, including pneumonia and sepsis, and is strictly banned in food procession.

MINSK, Oct. 11 (Xinhua) -- Chinese telecommunications firm Huawei on Tuesday showcased its latest solutions in mobile broadband at an exhibition in Belarus.Focusing on the possibilities of expanding the capacity of mobile operators' networks, the solutions propose to use fourth-generation network standards and introduce elements of intelligent network resources.The exhibition also presented the latest generation of radios, transportation equipment, and terminal solutions."Mobile traffic is constantly increasing, but profit is not growing so fast - about 20 to 30 percent," Xu Zhidong, general director of Bel Huawei Technologies, said during the opening ceremony of the exhibition."We need to provide more services. In addition, the market should be presented by more terminal devices. The decisions, which are displayed at the exposition, will not only increase the volume of Internet traffic, but also increase average profit per subscriber," he added.Lu Guicheng, China's ambassador to Belarus, said Huawei has seen a very successful development, including in the Belarussian market.Huawei, China's largest telecommunications company, which began investing in Belarus in 2003, signed an agreement with the Eastern European nation last month to set up a network technology training center in Belarus for telecommunications technology research and training.It also agreed last month to help more than 300 Belarussian companies with their information technology construction over the next four years.