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GENEVA -- China has reached understanding with the United States and Mexico on their alleged trade subsidy measures, sparing a WTO panel ruling on the case, the Chinese WTO mission said here on Thursday.Chinese Ambassador Sun Zhenyu signed respective memorandums of understanding with his US and Mexican counterparts "regarding certain measures granting refunds, reductions or exemptions from taxes or other payments" at the WTO headquarters on Thursday, the mission said in a statement.In the MOUs, China made it clear to the United States and Mexico that "the policy of exemption for certain foreign-invested enterprises from payments to the State for worker allowances is no longer operative."Besides, the policy of value-added tax (VAT) refund to enterprises for the purchase of domestically produced equipment does not constitute prohibited subsidies as provided by relevant provisions of WTO agreements."Other preferential policies on income tax pertinent to the disputes have been repealed or will be repealed along with the implementation of the new Enterprise Income Tax Law of China," the statement added.According to the Chinese mission, the MOUs will be notified to the WTO as mutually acceptable solutions to the above-mentioned dispute in accordance with the Dispute Settlement Understanding of the world trade body.The United States filed the case to the WTO in February and later was joined by Mexico. The two countries alleged that China was using tax breaks and other incentives to "subsidize" its exports, which might violate WTO regulations.A WTO panel was established in August to investigate the case, following failed consultations between the three sides.But the three sides finally reached understanding on the dispute through continued discussions.

The State Administration of Radio, Film and Television has called a halt to all TV and radio programs on plastic surgery or sex-change operations.The administration issued a notice on Thursday that forbids programs with such "indecent themes and bloody and explicit scenes".As the decision states, it is forbidden to plan, program or broadcast any programs about plastic surgery or sex-change operations.The decision came as growing numbers of local TV stations decide to broadcast such programs, which have attracted complaints from many viewers.For example, Sun Min, a viewer in South China's Guangdong Province, said she found the scenes of plastic surgery in "New Agreement on Beauty", broadcast by a local TV station, to be "horrifying and sickening"."Ongoing programs of this kind should be stopped immediately," said the notice. "Any party that violates the rule will be punished."The administration has already stopped broadcasts of "New Agreement on Beauty".In response, He Yi, an official with the Guangdong TV Station, said that the program's production team understands the administration's decision and would abide by it.The administration's move came a week after it banned "The First Heartthrob", a local talent show broadcast in Southwest China's Chongqing Municipality, due to its vulgar content.The program caters to "low-grade interests", with the judges and songs on the program often featuring bad language.The administration said this seriously damages the image of the television industry and has a negative social influence.The director of the program has already been fired by Chongqing TV station.

BEIJING - The Chinese Academy of Social Sciences (CASS), the country's top think tank, published its eighth annual report on Monday and introduced a new international strategy.The report - "China's Modernization 2008" - proposed a brand new concept, the so-called "Peace Dove Strategy".The strategy, with the principle of "Follow the UN Charter and Promote World Peace", calls for the building of a favorable international environment for China's modernization.The "Peace Dove Strategy" makes the United Nations the head of the Dove.Asian nations are the foreside; the Asia-Pacific Economic Cooperation is the eastern wing, and the proposed "Asia-Europe Economic Cooperation", which is upgraded from the existing Asia-Europe Meeting, is the western wing.South America, Oceania and Africa bring up the rear.The strategy, which centers on Asia and faces the world, calls for cooperation of all member nations on an equal, mutually beneficial basis.Under the strategy, China will optimize the structure of its international modernization strategy, increase its national capacity in international modernization, and improve the international environment for the country, according to He Chuanqi, head of the CASS Center on the Study of China's Modernization.The strategy was created drawing upon international experience of the past 300 years and the history and realities of China's international modernization, the official said.The report has been published and distributed as a single volume by the Beijing University Publishing House.

Beijing is planting trees and plants along riverbanks instead of covering them with concrete to fix its river system. It has taken almost 10 years for the capital to accept and use this idea. The ecosystems in the streams are gradually coming back to life because of the cleaner water, providing a good habitat for animals and plants, and ideal leisure sites for local residents.  Zhuanhe which connects with Kun Ming Lake in the Summer Palace is one of successful example of the river ecological treatment in Beijing. "In Beijing, there are 52 rivers with a total length of 520 kilometers inside the sixth ring road. Yongding and Jingmi rivers are the city's two main water sources, and Qinghe, Bahe, Tonghui and Liangshui are key drainage waterways," said Yu Kongjian, dean of the Sight Engineer Institute with Peking University. Originally, Beijing only wanted to control the floods by letting water flow out as soon as possible. Therefore, riverbanks were cemented down in order to prevent water leakage and the growth of plants, which could slow the water speed down. However, the shortage of rainfall in Beijing since 1999 showed that this method was not correct. On the one hand, streams had less fresh water to clean themselves. On the other, more polluted water was dumped into the rivers as more people moved into the capital. And in the summer of 2001, something bad happened. "The rivers in Beijing turned blue overnight and gave off a smelly odor," said Liu Peibin, vice engineer of Beijing Water Authority. There was an algae bloom due to so much pollution in the water. Algae covered the water surface and consumed most of the oxygen, and many creatures in the water died as a result. These "concrete pools" became the haven for swarms of mosquitoes which forced tens of thousands of residents nearby to close their windows and doors tightly especially in summer days. The water authorities had to act quickly for public safety. The first step was to demolish the concrete covering the riverbanks. The soil was exposed to water again, and the water could circulate down to the riverbank. Secondly, in order to stimulate oxygen in the streams, engineers put big stones in the water to create mini waterfalls. And they grew trees like willows and plants such as bulrush along the riverbanks. "Bulrush can purify polluted water through absorbing nitrogen and phosphorus in the water and exhaling oxygen," Deng added. "Gradually Zhuanhe came back to life and got rid of the polluted and smelly water. This would be impossible today if the brook was still covered in concrete." "What we did with Zhuanhe is a milestone in the progress of river treatment with new ecological ideas," said Deng Zhuozhi, vice engineer of Beijing Water Project Institute. He took charge of the Zhuanhe project. "How to fix up rivers depends on our attitude towards floods. We should learn to make friends with floods in a country where two-thirds of China's cities are short of water. Therefore we should reserve water as much as possible instead of discharging it ineffectively," said Yu.