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BEIJING, Feb. 26 (Xinhua) -- China's macroeconomic management would be put to the test both by the domestic and international markets in 2010, said Chairman of National Development and Reform Commission (NDRC) Zhang Ping Friday.The country's fiscal and monetary policies would be tested given the uncertainties of 2010, Zhang said."As to monetary policies, if the bank continues to provide easy loans,inflation may occur. But if the government tightens monetary policies too soon, the economy may relapse into recession." said Li Daokui, director of the Center for China in the World Economy, Tsinghua University.Last year, Chinese banks lent an unprecedented 9.6 trillion yuan (1.4 trillion U.S. dollars), nearly twice as much as 2008, and nearly half of 2009's gross domestic product (GDP).This year, for fear of asset bubbles and bad loans, the banking regulators have begun to put the brakes on bank lending. The People's Bank of China (PBOC), China's central bank, raised the reserve ratio by 0.5 of a percentage point earlier this month, hoping to reduce lending.According to the PBOC, new loans in January totalled 1.39 trillion yuan, down 230 billion yuan year-on-year, and China Banking Regulatory Commission Chairman Liu Mingkang said the Chinese government planned to restrict credit supply to 7.5 trillion yuan (about 1.1 trillion U.S.dollars) in 2010.Too much public investment caused weak private investment and overcapacity in some industries like steel, said Zhang Xiaoqiang, vice chairman of the NDRC."There's uncertainties about economic growth restructuring and fiscal stimulus plans," said Tang Min, vice secretary-general of China Development Research Foundation.The central government allocated about 924.3 billion yuan for public spending last year, 503.8 billion yuan more than the 2008 budget, said Finance Minister Xie Xuren.To face the challenges, fiscal policies would focus on consumption stimulus and development of new economic sectors like new energy industries, said Xie at the Central Economic Work Conference held last month.

BEIJING, March 12 (Xinhua) -- China's central bank said Friday a stronger yuan offers no help for solving the Sino-U.S. trade imbalance problem, and China opposes politicizing yuan's appreciation.Su Ning, vice governor of the People's Bank of China, made the comments a day after U.S. President Barack Obama told the U.S. Export-Import Bank's annual conference that a more market-oriented exchange rate of yuan will make an essential contribution to global rebalancing efforts."We do not think a country should rely others to solve its own problems," Su, a member of the Chinese People's Political Consultative Conference (CPPCC) National Committee, said on the sidelines of the top political advisory body's annual session.The U.S. Department of Commerce said on March 11 that the U.S. trade deficit with China increased to 18.3 billion U.S. dollars in January from 18.14 billion U.S. dollars in December. The increase renewed the U.S. call for a stronger yuan as it claimed the current exchange rate gives Chinese goods unfair price advantages.Su said although yuan has gained more than 20 percent since it depegged the U.S. dollars in June 2005, China's trade surplus tripled from 100 billion U.S. dollars in 2004 to nearly 300 billion U.S. dollars in 2008.In addition, he argued, a weaker U.S. dollar does not help cut the U.S. deficit. As the U.S. dollar depreciated by 3 percent annually in average between 2002 and 2008, its deficit soared from 500 billion U.S. dollars to 900 billion U.S. dollars, Su said.Tan Yaling, a financial researcher with Peking University, said as nations have different roles in international trade and differ in resources, what they produce, consume and want can be very different."It is unfair that the United States, on the one hand, consumes cheap Chinese goods, while on the other hand, it blames the low prices for causing their domestic job losses," she said.The Obama administration's continuous calls for a stronger yuan is actually aimed at diverting attentions from its domestic woes, experts said.To grapple with high unemployment rate and uncertain recovery prospects, Obama has to do something on job promotion to secure victory in the mid-term election in November this year, said Chen Zhiwu, a financial professor with Yale University.To curb soaring unemployment and boost growth, Obama has announced a special task force on a mission of doubling the U.S. exports in five years, as he said the U.S. can not "stand on the sidelines," as other countries are busy negotiating trade deals.Cheng Enfu, a deputy to the National People' s Congress (NPC), China' s top legislature, said the consistent pressure from the United States is simply because of its pursuit of national interests."Over-fast appreciation of yuan does no good to the global economic recovery which is still fragile and uncertain," he said.Zhu Yuchen, also an NPC deputy, said as China plays a leading role in global economic recovery, any drastic policy change will not only impair China's economy, but also the global recovery, which is not a responsible way.President Obama's remarks also came a month ahead of a semiannual Treasury Department report that could label China as a currency manipulator.Premier Wen Jiabao said in the government work report delivered to the NPC on March 5 that China will keep the yuan "basically stable" at an "appropriate and balanced" level.HEFTY SURPLUS, BUT SLIM PROFITSAlthough China has accumulated massive trade surplus over the past decades, that does not indicate the same profits, as more than half of China's exporters are foreign invested, lawmakers said.Figures released by the Ministry of Commerce showed 55.2 percent of China's foreign trade was completed by foreign-invested businesses last year. And 56 percent of the exports were done by foreign companies in China.Cheng Enfu said China only pockets paper-thin profits from the very end of the manufacturing chain, or processing and assembling work. However, the United States earn handsome profits from designing and distribution.According to a study by researchers of the University of California, of the 299 U.S. dollars retail value of a 30-gigabyte video iPod in the United States, 163 U.S. dollars is captured by American companies and workers, and 132 U.S. dollars go to parts makers in other Asian countries, while the final assembly, done in China, cost only about 4 U.S. dollars a unit."Even though Chinese workers contribute only about 1 percent of the value of the iPod, the export of a finished iPod to the United States directly contributes about 150 U.S. dollars to our bilateral trade deficit with the Chinese," Hal R. Varian, a professor of the University of California at Berkeley, wrote on the New York Times on June 28, 2007.Cheng Enfu noted it needs to upgrade exports product mix to fundamentally reverse China's disadvantages. That is, to export more profitable self-innovative products, rather than labor-intensive processing goods.

LONGYAN, Fujian, Feb. 13 (Xinhua) -- Chinese President Hu Jintao on Saturday promised favorable polices to support and accelerate the development of old revolutionary bases."It is an important duty of the Party and government to help old revolutionary bases speed up development and improve people's living standard," Hu said during a two-day trip to Longyan City in east China's Fujian Province just ahead of the Spring Festival, or China's Lunar New Year, which falls on Sunday this year.Chinese President Hu Jintao (Front) dances with residents at Wulong Village in Gutian Town of Shanghang County under Longyan City, southeast China's Fujian Province, Feb. 13, 2010. President Hu made an inspection tour in Fujian on Feb. 12-13"In the future, we will continue to implement every favorable policy to help promote the sound and rapid development in the old revolutionary bases," Hu said.Hu, also general secretary of the Communist Party of China (CPC) Central Committee, visited Gutian Village in Shanghang County in the drizzle Saturday morning.Gutian Meeting, which had a milestone significance to the history of the CPC and the army, was convened in 1929 in the village."After ten years, I've come to Gutian again," said Hu, who last visited the village in 1999. "I feel happy from my deep heart to see the significant changes that have taken place here and the improved living standards of the villagers."Chinese President Hu Jintao (4th R) prepares special local New Year food with family members of Zhang Tangmei at Wulong Village in Gutian Town of Shanghang County under Longyan City, southeast China's Fujian Province, Feb. 13, 2010.He added that during the revolutionary era, people in the old revolutionary bases made great sacrifice and contribution to the victory of China's revolutionary cause and the founding of New China.He expressed hope that the villagers would continue to uphold the spirits of hard work and plain living so as to create a better life with their own hands.Hu visited a museum in memory of the meeting. At the office venue where Comrade Mao Zedong once worked, he stood still for quite a long time, to review the spirit of the Gutian Meeting and recall the merits and achievements made by the older generations of revolutionists.Chinese President Hu Jintao (3rd R) prepares special local New Year food with family members of Zhang Tangmei at Wulong Village in Gutian Town of Shanghang County under Longyan City, southeast China's Fujian Province, Feb. 13, 2010Hu also met with some local veterans, asking about their health and living conditions and greeting them on behalf of the CPC Central Committee.He added that currently, the whole Party and the whole nation were making great efforts to build a moderately prosperous society in all aspects. He urged the inheritance of the spirit of Gutian Meeting and more efforts in building the Party and the nation.Hu also visited Wulong Village near the venue of the Gutian Meeting. At the home of 95-year-old villager Zhang Tangmei, Hu extended new year's greetings to her and prepared special local new year food with her family.While making the glutinous rice with sweet Chinese dates, Hu asked the family members' life and work and wished them better life in the new year.At a square in front of the Wulong Village, Hu also joined the locals in dancing.

BEIJING, Feb. 25 (Xinhua) -- China defended its move to reduce its holdings of U.S. Treasury securities, saying the United States should take steps to promote confidence in U.S. dollar .Foreign Ministry spokesman Qin Gang made the comment Thursday when responding to questions on China's sale of U.S. Treasury securities last December.Qin said the issue should be viewed from two perspectives.He said on the one hand, China always followed the principle of "ensuring safety, liquidity and good value" in managing its foreign exchange reserve. And when it came to how much and when China buys the bonds, the decision should be made taking into account the market and China's need, so as to realize rational deployment of China's foreign exchange property, he said.And on the other hand, the United States should take concrete steps to beef up the international market's confidence in the U.S. dollar, Qin said.The way to view the issue was similar to doing business, he said.China trimmed its holdings of U.S. debt by 34.2 billion U.S. dollars in December 2009, leaving Japan the largest holder of U.S. Treasury securities, the U.S. Treasury Department reported on Feb. 16.As of the end of November last year, China held 789.6 billion U.S. dollars of U.S. Treasury bonds.

BEIJING, Jan. 16 (Xinhua) -- Being the only foreign rescue team to run medical-aid stations in quake-ravaged Haiti, Chinese rescuers are giving quake victims what they desperately need: medical assistance, team members told Xinhua via phone Saturday.     The China International Search and Rescue Team, arriving in Port-au-Prince at 2 a.m. local time on Jan. 14, opened the first medical assistance station at 8 p.m. the next day, said captain Hou Shike.     The station had been treating patients pulled out of debris and provided medical support to medical and security personnel, he said.     China's second station in the refugee camp near the office building of Haitian prime minister had treated and some 120 people, while giving hygiene tips and conducting epidemic prevention work in the camp.     "To prevent epidemics, we had sterilized an area of 300 square meters in the refugee camp crammed with thousands of quake victims," Hou said.     "Confronted with severe wound infection, numerous refugees are in urgent need of professional medical treatment," said Fan Haojun, deputy captain of the team.     He said although local volunteers had done their best to offer basic treatment, but because of the lack of wound cleansing, infections among some of the wounded had deteriorated that even small operations costed more time and medicines than usual, said Fan.     The Chinese rescue team of more than 60 people left Beijing for the Caribbean island Wednesday night along with 10 tonnes of food, equipment and medicines.     The massive quake also left eight Chinese police officers, serving in China's peacekeeping forces, buried. The body of one missing police officer had been found, said China's public security ministry late Saturday night.