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BEIJING -- The Industrial and Commercial Bank of China (ICBC) is forecasting an 8 percent increase in the country's Consumer Price Index (CPI) for the first quarter of 2008. The official government figures come out in mid-April.The bank said in a report issued on Thursday that the CPI would hit 8.2 percent in March, slightly down from the previous month as the effects from the snow chaos that hit China earlier this year died away.Inflation in China took its biggest jump in nearly 12 years in February when it rose 8.7 percent compared to the same period a year earlier. Food prices surged 23.3 percent while non-food prices edged up 1.6 percent from the year earlier period.Inflation was mainly fueled by rising food and energy prices in the global market, and compounded by domestic factors that included increased costs and a strong demand, the report said.The new round of global grain price rises, including rice and wheat, might add more pressure to the government's anti-inflation efforts.However, the inflation index would start decelerating in the second half of 2008 as the government's macro controls took effect. The continued global slowdown also weighed on demand and could gradually pull down prices, the report said.China rolled out a series of measures to fight inflation after the government was reshuffled last month. Among the latest moves was an increase in farm subsidies to boost production and curb grain price hikes.
UNITED NATIONS, Sept. 25 (Xinhua) -- Chinese Premier Wen Jiabao has clarified China's policies of continuing reform and opening-up and seeking peaceful and common development during his just-concluded visit to the UN headquarters, Chinese Foreign Minister Yang Jiechi said Thursday. During his 48-hour stay in New York, Wen attended the UN high-level meeting on the Millennium Development Goals (MDGs) and the 63rd annual general debate of the UN General Assembly. Wen's visit was particularly significant in view of the increasingly complex international situation, the recent turbulence in the international economic and financial sectors, the sharp increases in oil prices and food supply shortage, and the whole world is keen to know in what direction China is heading after the Beijing Olympic Games, Yang told Xinhua. Chinese Premier Wen Jiabao delivers a speech at the United Nations high-level meeting on the Millennium Development Goals (MDGs) in New York, the United States, Sept. 25, 2008 During his visit, Wen declared China is determined to follow the path of peaceful development and stick to the policies of reform and opening-up, and an independent and peaceful foreign policy. In terms of international relations, the premier said China is ready to develop friendly relations with all countries on the basis of mutual respect, equality and mutual benefit. Wen said China, as a responsible and major developing country, is ready to work with other members of the international community to contribute to global peace and development. Wen also reiterated China's commitment to promoting the world’s common development. In this regard, he gave a comprehensive account of China's achievements in launching programs aimed at providing assistance to poor areas, and its contribution to global poverty reduction and South-South cooperation. The Chinese premier put forward several proposals aimed at speeding up realization of the MDGs and called on countries around the world to pay more attention to the issue of poverty and to increase international aid. Wen also unveiled six initiatives adopted by the Chinese government in its mission to assist developing nations, including setting up a development fund under the Food and Agricultural Organization (FAO), helping to train agricultural technicians, increasing agricultural exports, writing off debts and tariff, as well as offering assistance in the construction of clean energy projects. Referring to the U.S. financial turmoil, Wen said China was confident of coping with the negative impact of the current crisis. Confidence-building is even more important than gold and currency in the face of financial crisis, he pointed out. China will strive to maintain the stability of its macro-economy, financial and capital markets, which is vital for the stability of the global economy, he said. Wen also expressed China's willingness to cooperate with the United States in addressing the crisis, while calling on the international community to show solidarity and make joint efforts in maintaining the stability of the financial market. Wen's opinions were echoed by the participants at the meeting, who agreed that China was an important player in stabilizing the world economy and financial system. Talking about the recent tainted milk formula scandal in China, which has drawn world attention to food safety in the country, Wen stressed that the Chinese government attaches great importance to food safety and has adopted effective measures to ensure product quality and food safety. He said China will never try to pursue corporate profit or economic growth at the expense of people's health and lives. Wen noted that China's exports will not only meet international standards, but also meet the specific requirements of the importing countries. China is willing to step up cooperation with the Unites States and other nations to ensure food safety, he added. On China-U.S. relations, Wen said the two countries share broad common interests and that China and the United States are not rivals but partners in cooperation. Wen called on both sides to enhance dialogue and communication, deepen mutual trust and cooperation, and efficiently handle sensitive issues such as the Taiwan issue, in order to ensure a healthy and stable development of bilateral relations. This is in accordance with the fundamental interests of the two peoples and is conducive to world peace, stability and development, and also conforms to the trend of history, Wen said. He said the Chinese government has always attached importance to china-U.S. relations and will go all out to maintain and develop the constructive and cooperative bilateral relations, irrespective of which party comes to power in Washington. During his stay in New York, the Chinese premier also met with representatives of overseas Chinese associations and the heads of local Chinese-language media.

CHENGDU, May 24 (Xinhua) -- Chinese Premier Wen Jiabao said Saturday the efforts to search survivors were continuing in the quake-hit areas, but the focus of work would be gradually shifted to the resettlement of residents and post-quake reconstruction. Wen told Chinese and foreign reporters at a resettlement site in Yingxiu town, a worst-hit area in the May 12 quake, that the biggest difficulty in resettling the quake-affected residents was the lack of tents. A total of 15 million rooms were damaged or destroyed in the quake and a large number of people are in need of shelter, said the premier, who is paying a second visit to the quake-hit Sichuan Province. "We have collected the tents nationwide and got aid from international community, but tents are still lacking," Wen said. The Chinese government has ordered domestic tent manufacturers to produce and transport 30,000 tents to the quake zone each day and 900,000 within a month, Wen said. The production of movable plank houses should also be accelerated to ensure the quake-affected people resume a normal life within three months, Wen added. Efforts should also be made to ensure no big epidemic after the disaster, the premier said Chinese Premier Wen Jiabao (R Front) speaks during an interview with journalists from at home and abroad, in Yingxiu Town of Wenchuan County, southwest China's Sichuan Province, May 24, 2008, during his second inspection tour of quake-hit areas in Sichuan after May 12 when the 8.0-magnitude quake happened. Enough epidemic prevention staff and medicine supply should be ensured, he said. Wen said another problem confronting quake-relief workers is that the chances of secondary disasters still exist. Quake-formed lakes are the most serious among them. "We will take effective measures to eradicate safety hazards to ensure no casualties in secondary disasters," Wen said. The premier stressed that the construction materials of collapsed public buildings, including schools and hospitals, should be collected for reference in future reconstruction. "Some 110,000 People's Liberation Army troops and armed police have been mobilized," the premier said. "The search and rescue operation has been conducted in every village." The central finance had earmarked tens of billions of yuan for the relief work, Wen said. A 75-billion-yuan (about 10.7 billion U.S. dollars) post-quake reconstruction fund had been set up and more money would be added to it in the next two years, he added. Before the reporters, Wen expressed sincere thanks to the Chinese worldwide, including compatriots from Hong Kong, Macao and Taiwan, as well as the leaders, governments and people of other countries for their concern, sympathy, aid and help. "Facing such a powerful quake, we welcome international reporters to the quake zone," Wen said. "And we believe you can report the quake, its damage and the work we have done in a fair, objective and truthful way with your conscience and humanitarian spirit." "In handling emergency incidents and other issues, we will unswervingly stick to the principles of putting people first and opening up to the outside," he said. The 8.0-magnitude quake, which was centered in Wenchuan County, had left 60,560 dead nationwide as of Saturday noon, according to the Information Office of the State Council.
BEIJING, Aug. 8 -- China's consumer inflation may continue to decline in July, marking the second consecutive month this year that it has dropped, according to economists' estimates. That may mean a departure from the rising spiral of inflation after it peaked at an annualized 8.7 percent in February. Lehman Brothers economist Sun Mingchun said his team's research found the July consumer price index (CPI), the main barometer of inflation, may drop to 6.7 percent year-on-year from 7.1 percent in June. The domestic Bank of Communications research arm said the figure could fall at 6.4 percent, which is also the estimate of Southwest Securities. China's consumer inflation may continue to decline in July, marking the second consecutive month this year that it has dropped, according to economists' estimates. One of the reasons why prices are stable is that there has been no flooding, a regular feature of the rainy seaon, said Sun of Lehman Brothers. Daily price data from the Ministry of Agriculture and the National Development and Reform Commission show that agricultural product prices rose only slightly in July while meat prices fell. Weekly price data released by the Ministry of Commerce also showed a moderate decline in food prices. The relatively high statistical base of last July also contributed to the drop in inflation this July, said Guo Tianyong, economist with the Central University of Finance and Economics. China's CPI hit 5.6 percent year-on-year last July, the first time it reached the 5-percent level that year. "If no major natural disaster hits China in August, CPI could fall below 6 percent in August, providing more room for the government to remove its price controls," said Sun. Economists said that without many unexpected incidence, it will gradually ease to around 5 percent by the year-end. A possible price liberalization of oil products, however, should not be a one-off adjustment, which will put a huge pressure on the country's battle against inflation, Guo said. China raised the prices of oil products and electricity late June. Analysts said that once the inflation pressure eases, policymakers may start a second round of price liberalization, which may lead to a rebound in CPI. If such liberalization moves are indeed made, they should be done in phases, not in one go, said Guo. Only that will ensure inflation does not peak again, as it did in February. The pressure from the rising producer price index (PPI), which gauges ex-factory prices and influences CPI, may be a concern, but even taking into consideration its impact, consumer inflation may no longer exceed the February peak in the coming months and the first half of next year "The worst times are behind us," said Dong Xianan, macroeconomic analyst with Southwest Securities. "From the second half of last year, the tightenting stance had been obvious, which is a pre-emptive move to ensure the current easing of inflation." Macroeconomic growth The economic growth may gradually slow down in the rest of the year, analysts said, but the fine-tuning of policies would shore it up. Dong from Southwest Securities forecasts that given the current growth momentum, the whole-year figure for GDP growth may be 10.1 percent, well below the 11.9 percent of last year. Other estimates are around the 10 percent mark. The global economic slow-down, which reduces external demand for China's exports, will bring much trouble to China, but its domestic consumption and investment will remain stable, analysts said. More importantly, the central authorities may adjust its tight policies to cater to individual demand of regions and sectors that have found it difficult to survive the tightened policies.
HANGZHOU, July 8 (Xinhua) -- Vice Premier Li Keqiang has urged the country's enterprises to raise their international competitiveness by speeding up transformation and adjustment in line with the changing domestic and global economic situation. During a three-day inspection and research tour in the booming southeastern Zhejiang Province, which ended on Tuesday, Li visited textile factories, electric machinery companies and high-tech enterprises to get a first-hand assessment of enterprise reform amid a new domestic and international market climate. Chinese Vice Premier Li Keqiang (2nd L, front) speaks while visiting auto parts producer Wanxiang Group in China’s Zhejiang Province on July 7, 2008.During visits to Wenzhou-based enterprises including garment producer Fapai Group and lighter maker Rifeng, Li said the overall Chinese economy was fundamentally in good shape and China was confident of keeping its economy growing steadily and fast. However, he said, the global economic slowdown and imported inflation were having an increasing impact on the economy and the country should take aggressive measures to deal with such challenges. Chinese Vice Premier Li Keqiang (C, front) talks with migrant worker Qiu Xucui (R, front) who is from the quake-hit Mianzhu city of southwest China’s Sichuan Province while visiting shoemaker Kangnai Group in China’s Zhejiang Province on July 6, 2008.In visiting electric machinery companies such as leading auto parts producers Wanxiang Group and Ruili Group Corp., Li said the economy was undergoing a critical period, which called for deeper reform. The government should lose no time or opportunity to improve the market economic system and try to make price increases "acceptable" for both industries and the public, Li said. He noted that China should also seek better development of foreign trade, improve the mix of imports and exports, and encourage Chinese enterprises to expand into the international market. At high-tech enterprises like Supcon Group and Alibaba, which owns China's largest e-commerce website, Li said enterprises should also continue to promote technological innovation and improve their management so as to boost their competitiveness. He also said vigorous development of enterprises was vital for the economy to maintain steady and fast growth and governments at all levels should do their best to provide better services for all companies and create a better climate for the development of enterprises
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