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BEIJING, Nov. 17 -- Chinese banks should be alert to the risks of growing bad loans and narrowing profit margins amid a worsening global financial crisis and domestic interest rate cuts, a senior banking regulator has warned.     China Banking Regulatory Commission Vice Chairman Jiang Dingzhi told a financial forum in Beijing on Saturday that China's banking system, despite being generally healthy, faces growing risks.     "Our judgment is that losses at overseas financial institutions will widen further, and capital shortfalls will become more serious," Jiang said     "The financial crisis won't end in the near term. So we should not turn a blind eye to the risks " Jiang said, warning that the first risk China may face in the coming years is "exported inflation" from developed economies.     He said many developed economies have taken quick action to inject huge liquidity and credit into their banks to stabilize financial systems and it is likely that the banks will export capital to developing countries such as China (through direct investment or loans).     "That may cause high inflation (for us) and we should keep a close eye on cross-border capital flows," said Jiang.     Jiang also warned that bad loans, especially in the real estate sector, are the second risk that China's banks are confronted with.     "Bad loans are already showing an upward trend, especially in the property market where the mortgage default risk is growing at an accelerating pace," Jiang said, without elaborating.     Jiang also said Chinese banks may encounter growing losses from their overseas investment as the global financial crisis remains "far from over".     The government said earlier that Chinese banks suffered "very limited losses" overseas as their exposure to bankrupt global financial companies was not much.     Jiang said Chinese banks also face narrowing profit margins as the central bank cuts interest rates to boost the slowing economy. Banks are encouraged to lend after the government announced a 4 trillion yuan (586 billion U.S. dollars) stimulus plan a week ago.     The People's Bank of China has cut interest rates thrice this year after economic growth cooled to 9 percent in the third quarter, the slowest rate in five years. He said the banks will see declining profits next year as lower interest rates shrink margins and loan defaults may increase.     However, Jin Liqun, chairman of the supervisory board of China Investment Corp, said Chinese banks should continue market-oriented reforms despite the risks.     "All these risks cannot be used as excuses to defer further reform in the banking system," said Jin at the forum. "Only with market-oriented reforms can our banks further build up their capabilities in profit-making and risk-prevention."     Jiang said China's banking system remains "in good health" with all major indicators at their best levels ever.     Banks' total assets, 59.3 trillion yuan at the end of September, were five times the level of 10 years ago when the Asian financial crisis erupted, he added. And banks reduced their average bad-loan ratio to 5.49 percent at the end of September, from 6.3 percent at the end of March.     "These sound indicators are the basis of our confidence to battle financial crisis," Jiang said.

BEIJING, Jan. 20 (Xinhua) -- Senior Communist Party of China (CPC) leader Zhou Yongkang underscored the importance of the rule of law in the country on Tuesday.     Zhou, a member of the Standing Committee of the Political Bureau of the CPC Central Committee, made the remarks when addressing the 6th congress of the China Law Society at the Great Hall of the People in Beijing.     President Hu Jintao, top legislator Wu Bangguo, Premier Wen Jiabao and Vice President Xi Jinping also attended the session.     In his address to the congress, Zhou first expressed appreciation and respect to all Chinese law workers for their contribution to the country.     Zhou said building a country ruled by law has always been the pursuit of the Chinese people.     He said after China initiated its reform and opening up drive 30 years ago, the country has seen remarkable progress in the improvement of its legal system, law education and research.     The principle of rule of law is the premise of the development of China and the well-being of the Chinese people, he said.     Zhou encouraged law workers in China to make further contributions to the country by giving advice on the country's development and safeguarding people's livelihood, thus help the country maintain economic growth and social stability.     Law workers must bear the people-first principle in their minds and try to safeguard the interests of the people according to law, when making or enforcing laws, and when providing legal services.     He also called for law workers to continue to popularize law education among the Chinese public, so that the whole society is encouraged to learn the laws, abide by the laws and use the laws to protect themselves.     Local party and government departments must help address the difficulties of law workers in order to create a favorable environment for law education and research and cultivate more law talents, Zhou demanded.     The China Law Society was founded in 1949 as a national association of legal scholars, jurists, law practitioners and an academic body of legal sciences. The society has now more than 140,000 members.

Chinese Vice President Xi Jinping (R) meets with Tariq Majid, chairman of the Joint Chiefs of Staff Committee of Pakistan, at the Great Hall of the People in Beijing, China, on Dec. 16, 2008.     BEIJING, Dec. 16 (Xinhua) -- China would work with Pakistan to push forward the bilateral strategic and cooperative partnership, said Vice President Xi Jinping here on Tuesday.     Xi made the remarks in a meeting with Tariq Majid, Chairman of the Joint Chiefs of Staff Committee of Pakistan.     Hailed the relations between China and Pakistan, Xi said the two nations enjoyed profound friendship, which had stood the test of international changes.     China and Pakistan set up diplomatic ties 57 years ago. Xi said the two countries witnessed increasing mutual trust in politics and expanded cooperation in various areas. Chinese Vice President Xi Jinping (R) meets with Tariq Majid, chairman of the Joint Chiefs of Staff Committee of Pakistan, at the Great Hall of the People in Beijing, China, on Dec. 16, 2008.     China valued the traditional friendship with Pakistan, and was ready to advance relations with the south Asia country, he noted.     Echoing Xi's remarks, Majid said his country attached great importance to the relations with China, and would join in China to promote bilateral exchanges and cooperation. Chinese Defense Minister Liang Guanglie (R) meets with Tariq Majid, chairman of the Joint Chiefs of Staff Committee of Pakistan, in Beijing, China, on Dec. 16, 2008.     Later this day, Majid also met with the Chinese Defense Minister Liang Guanglie.     Liang applauded that the two countries have witnessed satisfactory achievement on military cooperation, in accordance with the sound development of bilateral relations.     China will work jointly with Pakistan to deepen exchanges and cooperation in every military aspect such as anti-terrorism, said Liang. Chinese Defense Minister Liang Guanglie (R) meets with Tariq Majid, chairman of the Joint Chiefs of Staff Committee of Pakistan, in Beijing, China, on Dec. 16, 2008.    Attaching great importance to bilateral relations, China pays much attention to maintaining the China-Pakistan friendship. China always handles and develops relations with Pakistan with strategic and long-term perspectives, Liang added.     Majid agreed to advance the relationship with China under today's global situation.     Majid was here for the Sixth Sino-Pakistani Defense and Security Talks.

HANGZHOU, Nov. 16 (Xinhua) -- Rescuers have confirmed four people were killed and 17 others missing following Saturday's collapse at a subway construction site in east China's Zhejiang Province.     Search is continuing for the 17 trapped in the provincial capital Hangzhou, said the rescue headquarters chief Wang Guangrong. Rescuers work at the collapsed road where a subway tunnel was under construction in Hangzhou, capital of east China's Zhejiang Province, Nov. 15, 2008. Rescuers had updated the number of the missing workers from the previous 18 to 17 after they recovered another body at about 10 p.m. on Sunday, which brought the death toll from three to four.     The accident happened at 3:20 p.m. on Saturday when a 75-meter-long section of the subway tunnel under construction collapsed at the Fengqing Avenue in Xiaoshan District, trapping at least 50 workers and creating a huge crater where 11 vehicles were trapped.     Most of the trapped workers were taken out safely and 26 injured workers were hospitalized. Nine of the injured had been discharged from hospital and the other 15 are still receiving treatment.     More than 1,000 policemen and fire fighters participated in the rescue work. They are pumping water from the tunnel as water from a nearby river flowed into the tunnel soon after the cave-in. Rescuers work at the collapsed road where a subway tunnel was under construction in Hangzhou, capital of east China's Zhejiang Province, Nov. 15, 2008. "There is a slim chance for the trapped workers to survive because of heavy flooding in the crater," said Wang, adding that the water level once reached six meters at its highest.     The construction undertaker, China Railway Construction Group Co., Ltd., has halted all the subway construction works in the city for safety checks, said the group's vice president Bai Zhongren.     The provincial work safety bureau and construction bureau have set up an investigation group to find out cause of the accident.     And a panel, composed of experts from Beijing Jiaotong University, Beijing Urban Engineering Design and Research Institute Co., Ltd. and Zhejiang University, is working on the rescue operation scheme.     Under the expert panel's advise, authorities have evacuated three households living near the cave-in site. Their houses will be dismantled to make way for the mechanical operation in rescue and repair work, Bai said.     The families of the dead and the trapped workers are heading to the rescue site.