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Construction workers toil on the roof of a new building being erected in Beijing April 1, 2007. [Reuters]Stronger-than-expected economic figures have prompted a number of international economic research institutions to revise upwards their forecasts for China's gross domestic product (GDP) growth. Almost all the major economic indexes in the first two months of this year have exceeded those for the same period last year. "The country's GDP growth in the first quarter will be faster than in the equivalent period last year and also that of the previous quarter," Chen Dongqi, deputy director of the Institute of Economic Research of the National Development and Reform Commission, said. The State Information Center has adjusted its GDP growth forecast for the first quarter from 10.2 percent to about 11 percent. Despite the government last year adopting a number of tightening measures, economic growth has shown clear signs of rebounding in the past quarter. Statistics show that urban fixed-asset investment picked up moderately to 23.4 percent year-on-year in January-February, and from about 20 percent in the fourth quarter of last year, reversing the trend of a gradual slowdown since last July. Meanwhile, the trade surplus registered a massive leap of 230 percent, and retail sales were up 14.7 percent on the first two months of last year. "Industrial growth is a key driving force behind overall economic growth, and power generation is also a useful indicator," Chen said. According to the National Bureau of Statistics, China's industrial output rose 18.5 percent year-on-year while industrial profits soared 43.8 percent in the first two months. Growth in power generation also accelerated to 16.6 percent year-on-year from less than 14 percent in the same period last year. Despite expectations the government will introduce another round of tightening measures soon, global investment bank, Lehman Brothers, still revised up its forecast for the Chinese economy. According to a recent report by the firm, the first quarter growth forecast has been raised from 9.8 percent to 10.1 percent, and the annual growth rate from 9.6 percent to 9.8 percent. "In the light of the stronger-than-expected figures in the first two months of this year and the likely policy responses, we have lifted our full-year growth projections for this year to 10 percent from 9.1 percent, based mainly on stronger growth in credit, investment and exports," Qu Hongbin, the chief China economist with HSBC, said. Domestic banks extended new loans of 982 billion yuan (7 billion) in the first two months of this year compared with 716 billion yuan ( billion) in the same period of 2006. The government forecast early last month that the country's GDP is to grow by about 8 percent this year. The country has just witnessed four consecutive years of double-digit growth, including 10.7 percent GDP growth last year, the fastest in a decade. The latest official forecast reflects the authorities' determination to shift the focus of economic growth from quantity to quality.

TOKYO - Japan's Supreme Court on Friday overturned a landmark ruling that had ordered a Japanese company to compensate Chinese who were forced to work as slave labourers during World War Two. It was the first ruling by Japan's top court on whether foreigners forcibly brought to Japan to work during and before World War Two had the right to compensation. A lower court had ordered Japanese construction firm Nishimatsu Construction Co. Ltd. to pay a total of 27.5 million yen (0,000) in compensation to a group of five Chinese for forcing them to labour in Japan during World War Two.

For the first time in 300 years, the renowned Shaolin Temple held a ritual on Thursday to initiate 600 believers into monkhood. On that same day, millions of monks and believers nationwide observed the Buddha bath festival which usually includes the washing of all statues of the Buddha. The ceremony used to be considered an official ritual to recognize a believer into true monkhood. Shi Yongxin, leader of Shaolin Temple and vice- president of the Buddhist Association of China, said that Buddhism in China has embarked on a "golden era" of development with a rapidly increasing number of believers. According to Shi, China has about 100 million registered religious believers, most of whom are Buddhists and Taoists. "They form an indispensable force to construct a harmonious society," he said. Shi said the ritual was suspended for 300 years because the altar where the ritual was held was destroyed. The 26-meter-high three-storey alter was restored last year at the temple, located in Dengfeng, Central China's Henan Province. The 600 Buddhists were selected out of 1,000 pious Buddhists nationwide. Shi said that only Buddhists who have passed a long-term inspection and are believed to have a "pre-destined lot" with Buddhism will be allowed to take the ritual and admitted by the temple. "Only Buddhists who practice Buddhism to a high level can be tonsured and allowed to take the ritual," Shi said. The ritual will last 28 days during which time the 600 monks will listen to doctrines, learn Buddhism rituals and manners in the temple. Both Buddhism and Taoism seem to be attractting more believers. An international forum on the "Daode Jing", a classic of Taoism, was held last month and lured 300 Taoists from around the world who wanted to explore the true essence of the classic text.

BEIJING -- The successful staging of the 17th National Congress of Communist Party of China has been selected by the country's netizens as the top domestic news in 2007, Xinhuanet.com said on Friday.About 800,000 Internet users voted for news items on 38 major news websites across the country, including People.com.cn, China.com.cn, cctv.com and Xinhuanet.com."China succeeds in its first moon-probing mission" came second and "China's National Congress passes Property Law" was the third, according to Xinhuanet.com, which posted the top ten news events on its website on Friday.The major news events were selected by Internet users from a pool of 20 items, an executive with Xinhuanet.com told Xinhua. The executive declined to provide information on detailed voting results.The top three international news stories were: "World oil price close to 100 US dollars a barrel", "US sub-prime mortgage market crisis shakes global financial market" and "National theme years fuel momentum for Sino-Russian cooperation".

A senior central bank official has rejected calls for a quicker increase in the flexibility of the renminbi exchange rate, saying the currency's role in rectifying global economic imbalances should not be exaggerated. Hu Xiaolian, deputy governor of the People's Bank of China, said more attention should instead be paid to growing protectionism to safeguard the health of the world economy, according to a central bank statement and Xinhua. She was speaking in Washington on Saturday at a conference during the semi-annual meetings of the International Monetary Fund (IMF) and the World Bank. The meetings are a venue for key financial officials of the two institutions' member countries to discuss global economic issues. Officials and economists at the IMF, which has a mandate to safeguard the global economy and render advice to member countries, said that Beijing should pursue a more flexible exchange rate, for the sake of both the Chinese economy and a more balanced global economy. However, China did not seem to see the advice as being appropriate. "The fund... should respect its member countries' core interests and actual economic fundamentals," Hu was quoted as saying. "Biased advice would damage the fund's role in safeguarding global economic and financial stability." In July 2005, China abandoned the renminbi's decade-old peg to the US dollar and let the currency appreciate by 2.1 per cent. Since then, it has gained almost another 5 percent against the dollar. However, there has been a persistent international chorus, led by the United States, arguing that China has not been moving quick enough in letting its currency rise. US lawmakers have said that the country's trade deficit was partly caused by what they believed an undervalued Chinese currency. Chinese officials say the yuan's flexibility would gradually increase but argue that radical steps would generate shocks in the Chinese economy which could spread to the rest of the world. "The IMF... should attach significance to stability of domestic economies (of member countries) when observing their contribution to outside stability," Hu said. She said the IMF should strengthen surveillance over the soundness of economic policies of countries whose currencies are used as major instruments in other countries' foreign exchange reserves. She was clearly referring to the US, whose low savings rate, and fiscal and trade deficits are agreed to be a key cause for global economic imbalances. Hu also called attention to what is seen as a rising protectionist sentiment, which has been causing troubles for China's exporters. "We call on all countries to harness the opportunities created by globalization... and resolutely oppose protectionism," she said.