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TAIPEI, Nov. 4 (Xinhua) -- Taiwan's ruling Kuomintang (KMT) honorary chairman Lien Chan said Tuesday that the new agreements between the Chinese mainland and Taiwan "earn a real applause" and could benefit both sides.     Lien held a banquet in Taipei to welcome the mainland's Association for Relations Across the Taiwan Straits (ARATS) president Chen Yunlin and his delegation.     "From a historical perspective, Chen's visit realizes a decade-old wish of President Wang Daohan and Chairman Koo Chen-fu, announces the establishment of an institutionalized consultation channel, and strengthens the base of cross-Straits mutual development and mutual benefits, " Lien said in his address.     In April 1993, late ARATS President Wang and Koo, late chairman of Taiwan-based Straits Exchange Foundation (SEF), held a historic "Wang-Koo meeting" in Singapore. It was the first public meeting between leaders of the two organizations.     Lien said Chen's current visit also symbolized a great step toward establishing mutual trust and achieving a win-win situation.     Chen and SEF chairman Chiang Pin-kung signed agreements on direct shipping and flights, postal services and food safety during their first summit in Taipei on Tuesday.     The agreements were expected to end a situation that has prevailed since 1949, which required air and sea movements between the Chinese mainland and Taiwan to go through a third place. Kuomintang honorary chairman Lien Chan (L) presents a gift to mainland's Association for Relations Across the Taiwan Straits (ARATS) President Chen Yunlin in Taipei, southeast China's Taiwan Province Nov. 4, 2008. Lien held a banquet for Chen and his delegation here on TuesdayLien, then KMT chairman, held a historic meeting with Hu Jintao, general secretary of the Communist Party of China (CPC) Central Committee, in 2005, the first such meeting after six decades.     Lien said he was honored to build a "shared vision" with Hu for the cross-Straits peaceful development. The three ensuing CPC-KMT forums, which had 48 fruitful deals, had greatly promoted cross-Straits exchanges and cooperation in fields such as economy, trade, culture, education and youth exchanges.     The ARATS delegation's visit was a key step in history, he said.     Chen said in his address that his "best dream of his life" was to sign the four agreements together with Chiang "on the lovely earth of Taiwan".     "For such a visit, many great efforts have been made ... and the ARATS and the SEF have signed six deals over the past five months, completing tasks that may take 60 years to achieve. The Taiwan side has made positive efforts," he said.     Three of the four deals signed on Tuesday concerned cross-Straits issues of "three direct links" of shipping, flights and postal services, which was "good news" for compatriots on both sides, Chen said.     "The future will tell that it is a right decision which would bring benefits to people on both sides," he said, adding the result would also comfort Wang and Koo who had passed away.     The ARATS and SEF would "bravely move on with steadier steps" so as to open a new era of peaceful development across the Straits, Chen said.     Taiwan's mainland affairs department chief Lai Shin-yuan said when meeting with Chen that "the mainland and Taiwan could solve misunderstandings step by step so long as the two sides could tolerate and understand each other".     She said the two high-level meetings between the two organizations in less than five months showed their strong willingness in shelving disputes, facing reality and vigorously improving ties.

BEIJING, Jan. 29 (Xinhua) -- China has set a frugal tone for its once-for-a-decade dress parade on Oct. 1 amid an economic downturn, promising that the military could strike a balance between morale-boosting spectacle and financial prudence.     Colonel Cai Huailie with the headquarters of the general staff of the People's Liberation Army (PLA) confirmed a rumor that the parade showcasing China's latest military achievement will be conducted in an economical way.     "Chinese military forces have a tradition of fulfilling large causes by spending less money," Senior Colonel Chen Zhou, an expert with the PLA's Military Science Academy, said in an online communication with netizens on eve of China's Spring Festival.     "We could see that the parade on National Day would be solemn and cost-effective," said Chen who has participated in drafting China's national defense white paper six times.     A number of netizens also questioned whether China would shrink its defense spending since the financial crisis has already cut the budgets of numerous enterprises and directly impacts the country's export-oriented companies.     Colonel Wen Bing, a researcher with the academy, said although China has raised it defense spending thanks to annual growing revenue, it has never gone beyond endurable economy.     Wen also revealed that the defense budget has been made according to China's laws and it will be submitted for approval to the annual session of National People's Congress, the top legislature, in March.     The third of its kind since China adopted the reform and opening-up policy three decades ago, the dress parade of the Chinese armed forces under the command of President and Chairman of the Central Military Commission Hu Jintao will display home-grown on-duty weapon systems of all the services.     In the last two parades, in 1984 and 1999, late leader Deng Xiaoping and former President Jiang Zemin reviewed troops representing millions of service people.     Such parades were frequent before 1984, with 11 parades in the 11 years after the PRC was founded on Oct. 1, 1949. It was suspended after 1959 until 1984 when Deng decided to resume the pageantry to rouse the nation on the track toward a liberalized economy.     The last parade on Oct. 1, 1999 involved more than 11,000 military staff, 400 combat vehicles and 132 aircraft. The servicemen trained for the synchronized marches and hailing slogans for about 10 months.     It is reported that the total cost of that parade will be kept at less than 300 million yuan (44.1 million U.S. dollars) and overseas rumors said it could be as many as 16 billion yuan.     The PLA's Navy has made impressive progress since its foundation in 1949. It has just sent three warships to the Gulf of Aden for an escort mission against piracy.     Although the Defense Ministry has not confirmed whether the dress parade will include a naval performance in China's waters, Colonel Cai said that there will be new weapons and equipment that have not been unveiled to the public since 1999.     Before the official announcement of the parade, an online debate on www.huanqiu.com about whether the government should hold a magnificent parade to celebrate the 60th anniversary of founding of the People's Republic of China had shown that more than 85 percent of the netizens voted yes. But it has not yet muted voices suggesting the authorities reconsider the parade.     "China has many fields that need capital investment after the major earthquake in Wenchuan. The government should use the taxpayers' money in more important and practical undertakings rather than parade," a netizen named "tomato boy" said.     "Military parades are an outcome of the cold war. Our weapons are modern and powerful, but we are not in any cold war," a netizen "a common man" said.     But those who overwhelmingly support the parade agree that the parade will bring encouragement to overcome difficulties amid economic downturn.     Dong Hongda, a senior online poster on www.xinhua.org, has worked out proposals on how to make the parade more cost-effective.     First, the government should control the parade in a proper scale by cutting the number of marching soldiers to a number that represents the quality of the PLA's elite.     Second, take out the female militia procession, since they are garish and dispensable part for the parade.     Third, reduce the duration of the training for the parade, since a large proportion of the parade expense will be spent in selecting the soldiers and training them, Dong said.

BEIJING, Oct. 31 (Xinhua) -- China's decision to cut interest rates on Thursday is part of its flexible monetary policy to cope with the world financial crisis and boost domestic economy, a central bank spokesman said on Friday.     Li Chao, spokesman of the People's Bank of China (PBOC) explained the government's cut in interest rates for the second time in one month.     On Wednesday, the PBOC announced to cut interest rates by 0.27 percentage points as of Oct. 30 to spur economic growth. The benchmark one-year deposit rate dropped to 3.60 percent from 3.87percent, while the benchmark one-year lending rate fall from 6.93 percent to 6.66 percent.     The previous cut was on Oct. 8, when the PBOC announced a lowering of deposit and lending rates by 0.27 percentage points and decided to cut the reserve-requirement ratio by 0.5 percentage points from Oct. 15.     Li said the move was in response to a spreading and worsening world financial crisis. "The severe crisis was beyond most people's expectations."     He said: "China's economy relies highly on external markets. It is very necessary for the country to adjust economic policy, including monetary policy, in a timely and flexible manner to reduce the negative impact to a minimum."     "Recently, China's exports have weakened as a result of weak world demand. Domestic export-oriented enterprises, especially those coastal based companies, face difficulties," he added.     The country's export value in the first three quarters was 1.07trillion dollars -- up 22.3 percent -- the growth rate was 4.8 percentage points lower, official figure showed.     "Meanwhile, the nation's inflation pressure has been eased," he said, adding the latest interest rate cut aims at maintaining the energy of China's economic growth.     China's gross domestic product (GDP) grew to 20.16 trillion yuan (2.96 trillion U.S. dollars) in the first three quarters of this year, up 9.9 percent from the same period of last year. The growth rate was 2.3 percentage points lower than the same period last year.     Consumer price index (CPI), the main gauge of inflation, rose 4.6 percent in September over the same period last year, off from the 12-year high of 8.7 percent in February.     When asked the reason why the government only reduced interest rates and left the reserve-requirement ratio unchanged in the latest move, Li said this is because liquidity of the country's bank is adequate.     Li said to cope with the international financial crisis and maintain sound and relatively fast national economic growth, the central bank has removed mandatory restriction on the commercial banks' loan plan.     He said that China has confidence that it can resist the world financial crisis, as the country has great potential in expanding its domestic demand, and the financial system is stable.     He called for cooperation between countries worldwide to cope with the crisis, and to carry out international financial system reform

BEIJING, Oct. 23 (Xinhua) -- China's top legislature on Thursday started to review a draft law on food safety, which sets stricter food quality standards and demands greater government responsibility.     The draft, which was revised after the recent contaminated dairy products scandal, would ban all chemicals and materials other than authorized additives in food production.     Health authorities are responsible for assessing and approving food additives and setting their usage. "Only those proved to be safe and necessary in food production are allowed to be listed as food additives," the draft says.     Food producers must strictly stick to the food additives and their usage approved by authorities, according to the draft     In the tainted dairy products scandal, melamine, often used in the manufacturing of plastics, was added to sub-standard or diluted milk to make protein levels appear higher. At least three infants died and more than 50,000 were sickened after drinking the contaminated milk.     The draft also prohibits food safety supervision authorities from issuing inspection exemptions to food producers.     China began exempting companies producing globally-competitive products from quality inspections in 2000 to help them avoid repeated examinations and reduce their burden.     The practice encountered severe criticism when it was discovered that many of the companies producing and selling melamine-tainted dairy products had national inspection exemption qualifications.     The draft was tabled to lawmakers at a bimonthly session of the Standing Committee of China's National People's Congress (NPC).

BEIJING, Jan. 22 (Xinhua) -- China's economy cooled to its slowest pace in seven years in 2008, expanding 9 percent year-on-year as the widening global financial crisis continued to affect the world's fastest-growing economy, official data showed Thursday.     Gross domestic product (GDP) reached 30.067 trillion yuan (4.4216 trillion U.S. dollars) in 2008, Ma Jiantang, director of the National Bureau of Statistics (NBS), told a press conference.     The 9-percent rate was the lowest since 2001, when an annual rate of 8.3 percent was recorded, and it was the first time China's GDP growth fell into the single-digit range since 2003.     The year-on-year growth rate for the fourth quarter slid to 6.8 percent from 9 percent in the third quarter and 9.9 percent for the first three quarters, according to Ma. Graphics shows China's gross domestic product (GDP) in the year of 2008, released by the National Bureau of Statistics (NBS) on Jan. 22, 2009. China's GDP reached 30.067 trillion yuan (4.4216 trillion U.S. dollars) in 2008, expanding 9 percent year-on-year.    Economic growth showed "an obvious correction" last year, but the full-year performance was still better than other countries affected by the global financial crisis, said Zhang Liqun, a researcher with the Development Research Center of the State Council, or cabinet.     He attributed the fourth-quarter weakness to reduced industrial output as inventories piled up amid sharply lower foreign demand.     Exports, which accounted for about one-third of GDP, fell 2.8 percent year-on-year to 111.16 billion U.S. dollars in December. Exports declined 2.2 percent in November from a year earlier.     Industrial output rose 12.9 percent year-on-year in 2008, down 5.6 percentage points from the previous year, said Ma.     SEEKING THE BOTTOM     Government economist Wang Xiaoguang said the 6.8-percent growth rate in the fourth quarter was not a sign of a "hard landing," just a necessary "adjustment" from previous rapid expansion.     "This round of downward adjustment won't bottom out in just a year or several quarters but might last two or three years, which is a normal situation," he said.     A report Thursday from London-based Standard Chartered Bank called the 6.8-percent growth in the fourth quarter "respectable" but said the data overall presented "a batch of mixed signals."     It said: "We probably saw zero real growth in the fourth quarter compared with the third quarter, and it could have been marginally negative."     The weakening economy has already had an impact on several Chinese industrial giants. Angang Steel Co. Ltd. (Ansteel), one of the top three steel producers, said Wednesday net profit fell 55 percent last year as steel prices plunged. It cited weakening demand late in the year.     However, officials and analysts said some positive signs surfaced in December, which they said indicated China could recover before other countries.     December figures on money supply, consumption, and industrial output showed some "positive changes" but whether they represented a trend was unclear, said Ma.     Outstanding local currency loans for December expanded by 771.8 billion yuan, up 723.3 billion from a year earlier, according to official data.     Real retail sales growth in December accelerated 0.8 percentage points from November to 17.4 percent. Industrial output also accelerated in December, up 0.3 percentage points from the annual rate of November.     Wang Qing, Morgan Stanley Asia chief economist for China, said GDP growth would hit a trough in the first or second quarter. China will perform better than most economies affected by the global crisis and gradually improve this year, he said.     Zhang also predicted the economy will touch bottom and start to recover later this year, depending on the performance in January and February.     Zhang forecast GDP growth of more than 8 percent for 2009, based on the assumption that domestic demand and accelerating urbanization would help cushion China from world economic conditions.     Wang Tongsan, an economist with the Chinese Academy of Social Sciences, said whether GDP growth exceeds 8 percent this year depends on how the world economy performs and how well the government stimulus policies are implemented.     Ma characterized the "difficulties" China experienced in the fourth quarter as temporary, saying: "We should have the confidence to be the first country out of the crisis."     Overall, the economy maintained good momentum with fast growth, stable prices, optimized structures and improved living standards, said Ma.     China's performance was better than the average growth of 3.7 percent for the world economy last year, 1.4 percent for developed countries and 6.6 percent for developing and emerging economies, he said, citing estimates of the International Monetary Fund.     "With a 9-percent rate, China actually contributed more than 20 percent of global economic growth in 2008," said Ma.     He said the industrial structure became "more balanced" last year, with faster growth of investment and industrial output in the less-developed central and western regions than in the eastern areas.     Meanwhile, energy efficiency improved: energy intensity, the amount of energy it takes to produce a unit of GDP, fell 4.21 percent year-on-year in 2008, a larger decrease than the 3.66 percent recorded in 2007, said Ma.     WORRIES ABOUT CONSUMPTION     A slowing economy poses a concern for the authorities, which they have acknowledged several times in recent weeks, as rising unemployment could threaten social stability. It could also undermine consumer spending, which the government is counting on to offset weak external demand.     The government has maintained a target of 8 percent annual economic growth since 2005.     China announced a 4 trillion-yuan economic stimulus package in November aimed at boosting domestic demand.     Retail sales rose 21.6 percent in 2008, 4.8 percentage points more than in 2007, said Ma.     Ma said he believed domestic consumption would maintain rapid growth as long as personal incomes continue to increase and social security benefits improve.     Urban disposable incomes rose a real 8.4 percent last year, while those of rural Chinese went up 8 percent, he said.     Analysts have warned that consumption could be affected if low rates of inflation deteriorate into outright deflation and factory closures result in more jobless migrant workers.     The urban unemployment rate rose to 4.2 percent at the end of 2008, up 0.2 percentage point year-on-year.     Ma said about 5 percent of 130 million migrant workers had returned to their rural homes since late 2008 because their employers closed down or suspended production. Other officials have said that 6.5 percent or even 10 percent of migrant workers have gone home after losing their jobs.