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L'AQUILA, Italy, July 9 (Xinhua) -- Chinese State Councilor Dai Bingguo on Thursday called for concerted efforts to tackle various global challenges at the leaders' meeting of the Group of Eight (G8) and five leading emerging economies (G5). Dai, who attended the summit on behalf of Chinese President Hu Jintao, delivered a speech entitled "Striving to push forward global economic recovery and enhance regulation of the world economy" to the meeting held in the quake-torn Italian city of L'Aquila, according to a press release issued by the Chinese delegation. Hu cut short his stay in Italy and skipped the G8 meeting due to the situation in China's Xinjiang Uygur Autonomous Region. He returned to Beijing Wednesday. In the speech, Dai expounded China's position on major international issues. Dai called for more international efforts to push for recovery of the world economy, saying that against the backdrop of economic globalization, the macro-economic policies adopted by one country, especially by a major economy, would exert an impact on other economies. "So when we promulgate a policy aimed at economic recovery, we should not only put into consideration our own interests, but also have to cast eyes on the interests of other countries," Dai said. The international community should strengthen communication in this regard, he said. The state councilor said the "primary task" now was to implement the results achieved at the G20 summits in Washington and London, so as to ensure the momentum and effectiveness of economic stimulus packages. He also urged the international community to abide by the principle of opening markets, opposing protectionism in various forms and safeguarding the normal and orderly movement of goods, services and personnel across borders. Dai also appealed for an accelerated process of the Doha Round talks of the World Trade Organization, said the press release. Leaders of the G8 industrialized countries and five leading emerging economies -- India, China, Mexico, Brazil and South Africa -- met on Thursday to discuss economic issues, climate change, trade and other international issues. On the current international financial crisis, the state councilor said the international community has already reached consensus on reforming the global financial system, but the key lies in the implementation of the consensus. In the short term, the reform is aimed at stabilizing the international financial market and boosting the growth of real economy, but the reform should be far-sighted, he said. In the long run, the reform should be aimed at enhancing regulation of the international financial system and safeguarding order of the global financial market, so as to avoid the recurrence of a similar crisis, he added. The state councilor stressed that representation and voting rights of developing countries should be increased in the International Monetary Fund and the World Bank. He said developing countries should participate as equal partners in the policy-making process in setting international financial standards and regulation. Dai also urged the international community to improve global financial supervision, the press release said. The state councilor appealed for maintaining the stability of major international reserve currencies, but he did not mention the U.S. dollar in his speech. He urged the international community to improve the international monetary system in a bid to make it diversified and rationalized. The state councilor also briefed the leaders on China's efforts to tackle the global financial crisis, saying the measures taken by the Chinese government have proven effective. Noting that the international financial crisis has brought considerable difficulties and challenges to China's economy, Dai said the Chinese government has adopted a series of resolute measures to tackle some thorny issues and these measures have seen initial achievements. The measures include a proactive fiscal policy and a moderately easy monetary policy, a stimulus package worth 4 trillion yuan (about 587 billion U.S. dollars) designed to expand domestic demand, and a tax-cut package of 500 billion yuan (around 73 billion U.S. dollars), Dai said. China also has striven to readjust its economic structure, accelerate infrastructure construction, seek balanced development between urban and rural areas, and improve social security system and people's life, Dai said. Thanks to these measures, China's gross domestic product (GDP) rose 6.1 percent year on year in the first quarter of this year, he added. According to a press release by the Chinese delegation, in the first five months of this year, on a yearly basis, the fixed-asset investment in urban areas jumped by 32.9 percent in China, the retail sales grew by 15 percent, and the industrial output increased by 6.3 percent. The state councilor said China would continue to cooperate with the international community to fight the international financial crisis, and would continue to make due contribution to the recovery of world economy. In his speech, Dai also called for joint efforts from the international community to tackle global challenges such as climate change, food and energy security. Dai said global challenges such as climate change, food and energy security are common problems facing the whole world, and therefore need joint efforts to cope with. On climate change, Dai said the international community should continue to insist on the core status of the UN Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, and abide by the principle of "common but differentiated responsibility" established by the two documents. The international community should take actions in line with the "Bali Road Map" and take into account different conditions of various countries, so as to push for the success of the upcoming Copenhagen Conference on climate change scheduled for December this year. On food security, Dai called for increased investment in agriculture, enhanced market monitoring and the establishment of assistance mechanisms. On energy security, he proposed a series of measures including setting up a system of energy technology research and development, diversifying energy supply, developing new energy and renewable energy, and improving energy efficiency.
BALI, Indonesia, May 3 (Xinhua) -- Details of a sizeable foreign currency reserve pool among the Association of Southeast Asian Nations, China, Japan and South Korea (ASEAN+3) were finalized here on Sunday, two years after the initiative was first introduced to combat emergent financial problems. Finance ministers of the ASEAN+3 nations reached the agreement on all main components of regional reserve pool, known as Chiang Mai Initiative Multilateralization (CMIM), and it will be implemented before the end of this year. The agreement on the CMIM includes "the individual country's contribution, borrowing accessibility, and the surveillance mechanism," said a statement issued after the finance ministers' meeting. The total size of the CMIM is 120 billion U.S. dollars with the contribution portion between ASEAN and the Plus Three countries at20 percent versus 80 percent. China and Japan will each contribute 38.4 billion U.S. dollars to the pool, while South Korea will contribute 19.2 billion dollars. Among China's portion, Hong Kong Special Administrative Region will contribute 4.2 billion U.S. dollars. "We welcome Hong Kong, China, to participate in the CMIM," said the statement. The CMIM is set up to "address short-term liquidity difficulties in the region and to supplement the existing international financial arrangements," the statement said. The ministers agreed to establish an independent regional surveillance unit to monitor and analyze regional economies and support CMIM decision-making. As a start, there would be an advisory panel of experts to work closely with the Asian Development Bank (ADB) and the ASEAN Secretariat. In the statement, the ministers also endorsed the establishment of the Credit Guarantee and Investment Mechanism (CGIM) as a trust fund of the ADB with an initial capital of 500 million U.S. dollars. It could be increased once the demand is fully met. "It's a welcoming step in coping with the crisis, and an important step to the financial architecture of the region and it will infuse confidence to the market," said ADB Managing Director General Rajat Nag after the meeting, referring to the finalization of the CMIM. Asked whether the CMIM is meant to replace the role International Monetary Fund plays in the region, he said the mechanism is only "good complement" to what IMF does. "Gladly, we don't have the situation like in the U.S. or Europe but it's better to be prepared. Once there is a need, we are able to present our concerns and there is facility there," said Philippine Finance Secretary Margarito B. Teves." It is a helpful matter for the market." "It's done, there would be no blocking stone toward the final implementation of reserve pool," said Thai finance minister Korn Chatikavanij.
HELSINKI, June 25 (Xinhua) -- China and Finland on Thursday agreed to push for closer economic cooperation to tackle the ongoing global financial crisis. Visiting Chinese Vice Premier Li Keqiang unveiled broad measures to work together with Finland to fight the global financial crisis after meeting with Finnish Prime Minister Matti Vanhanen. Li and Vanhanen joined a signing ceremony of several government and business agreements between the two sides, under which Li said China would purchase Finland's advanced environment-friendly technologies. China would also send a large group of entrepreneurs to Finland within two weeks to make major purchases of Finnish goods, according to Li. Chinese Vice Premier Li Keqiang (1st R) holds talks with Finnish Prime Minister Matti Vanhanen in Helsinki, June 25, 2009 The two governments also planned to hold talks in August on reducing double-taxing to facilitate bilateral trade and investment activities. Li said these measures were major fruits of his visit to Finland, adding that the measures reflected the shared political will between China and Finland to push for closer cooperation in tackling the financial crisis and opposing protectionism. Vanhanen said that the Finnish government and the Finnish people, battered by the ongoing financial crisis, were looking forward to seeing the large group of Chinese entrepreneurs in Finland. The Finnish leader stressed that the Sino-Finnish relations had always been solid and strong, adding that the two sides were getting increasingly closer as they took effective measures to deepen bilateral cooperation in all fields. Vanhanen said the 2010 World Expo to be held in Shanghai, China was a good opportunity for promoting the Sino-Finnish relations, and that Finnish companies would actively participate in the event. He promised that Finland would continue to play a constructive role in promoting China-EU relations and pushing for the lifting of an EU arms sales ban on China as soon as possible. Vanhanen reiterated that the Finnish government would firmly adhere to the one-China policy. During their talks, Li highlighted several key points in developing the Sino-Finnish relations. He said China and Finland should attach strategic importance to their relations, further expand mutually beneficial economic cooperation, and create new areas for cooperation in culture and education.
SHANGHAI, July 12 (Xinhua) -- China Eastern Airlines on late Sunday announced that it will merge Shanghai Airlines through a shares swap and the two will resume stock trading in Shanghai Monday. Shanghai Airlines will exchange one of its A shares for 1.3 shares of China Eastern after the former's shareholders are given a 25 percent risk premium, the latter said in a statement filed to the Shanghai Stock Exchange. Shanghai Airlines Chairman Zhou Chi said on June 30 that the transfer of shares will take about four to five months. Liu Jiangbo, spokesman of the working team overseeing tie-up affairs, said Shanghai Airlines will become a wholly-owned subsidiary of China Eastern and retain its brand and independent operation. Liu told Xinhua that the merger has entered a concrete stage after the announcement of the detailed merger plan. This is a major step to promote the consolidation of regional airlines and to facilitate building Shanghai into an international air and shipping hub, he said. The merger will give China Eastern, one of China's three state-owned airlines, about 50 percent market share in Shanghai. China Eastern reported a net loss of 13.9 billion yuan in 2008 because of weak travel demand in the economic downturn and wrong-way bets on fuel prices. China Eastern and Shanghai Airlines shares have been suspended from trading since June 8 while waiting for the merger talks. China Eastern last closed at 5.33 yuan and Shanghai Airlines closed at 5.92 yuan. China Eastern is listed in Hong Kong and Shanghai and Shanghai Airlines is listed in Shanghai.
BEIJING, July 8 (Xinhua)-- China's gross domestic product (GDP) growth in the second quarter this year is forecast to accelerate close to 7.8 percent, Goldman Sachs Asia and the Beijing-based Gaohua Securities Company said in a report Wednesday. "The figure is above our previous forecast of 7.0 percent year on year," said Song Yu, one author of the report and Goldman Sachs Asia's economist on China's macro-economy. According to the report, economic performance of China in June will show robust improvements, with the industrial output expected to rise about 10 percent in June from 8.9 percent in May. Fixed asset investment in June is forecast to grow 42 percent year on year, up from 38.7 percent in May. Exports is expected to decline 22 percent in June from a year earlier, smaller from a 26.4 percent dip in May, while imports may post a eased drop at 18.0 percent from a 25.2 percent fall in May. The consumer price index is expected to fall 1.5 percent in June from a year ago, compared with a 1.4 percent drop in May. Producer price index would decline 7.6 percent year on year, compared with a slide of 7.2 percent in May. Zhou Xiaochun, governor of the country's central bank, said in late June that the second quarter is expected to be better than the first, when the gross domestic product grew 6.1 percent. The National Bureau of Statistics said in June that China's GDP will grow close to eight percent in the second quarter. China is due to release its second-quarter GDP data in mid-July.