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BEIJING, Jan. 14 (Xinhua) -- China's State Council unveiled a long-awaited support package for the auto and steel sectors Wednesday to boost the two "pillar industries".     Under the plan, the government will lower the purchase tax on cars under 1.6 liters from 10 percent to 5 percent from Jan. 20 to Dec. 31 in a bid to stimulate sales.     It will also allocate 5 billion yuan (730 million U.S. dollars) to provide one-off allowances to farmers to upgrade their three-wheeled vehicles and low-speed trucks to mini-trucks or purchase new mini-vans under 1.3 liters from March 1 to Dec. 31. It will also increase subsidies for people to scrap their old cars and will straighten out and cancel regulations that restrict car purchase.     The plan encourages large auto companies, as well as major auto-part makers to expand through mergers and acquisitions so as to optimize resources and improve their competitiveness on the international market.     In the next three years, the central government will earmark 10 billion yuan as a special fund to support auto companies to upgrade technologies, and develop new engines that use alternative energies. The government will offer financial support to promoting the use of energy-saving autos and those fueled by new energies, and support automakers to develop independent brands and build auto and parts export bases.     The plan also urges improvements in the credit system for car purchase loans. More than 93 percent of Chinese vehicles are sold in the domestic market, but less than 10 percent are purchased on credit.     It also requires accelerated upgrading of the steel sector, transforming "big" industry competitors into "strong" international players.     It said the industry needed to eliminate outdated technology, and must not establish new projects that merely add to steel output.     China also needed to increase domestic demand for steel and adopt a more flexible tax rebate policy to keep international markets.     Special funds will be allocated from the central budget to promote technological advancement of the sector, readjustment of products mix and improvements of product quality, according to the plan.

BEIJING, Nov. 25 (Xinhua) -- Chinese Premier Wen Jiabao stressed here Tuesday the comprehensive and strategic partnership between China and the European Union (EU).     "Comprehensive" means the promotion of political trust and mutually beneficial cooperation, and "strategic" requires that both sides make concerted efforts in a far-sighted way to ensure the lasting, stable and healthy development of China-EU relations, Wen said.     The premier made the remarks in his meeting with former president of European Commission also former prime minister of Italy Romano Prodi. Chinese Premier Wen Jiabao (L) meets with Romano Prodi, former president of European Commission and former prime minister of Italy, in Diaoyutai State Guesthouse, Beijing, capital of China, Nov. 25, 2008.    Wen highlighted the recent growth in China-EU cooperation, noting that China will firmly support the EU's integration process and welcomes the EU to play a more active role in dealing with international issues.     "We cherish the hard-won achievements on China-EU relations and are willing to further trust and cooperation with the EU based on mutual respect, equality and reciprocity," Wen told Prodi.     Wen also called on the two sides to join hands to tackle global challenges and overcome the current difficulties over the world's finance and economy.     Echoing Wen's views, Prodi spoke highly of the Beijing Olympic Games and the measures adopted by China to handle the international financial crisis.     He said China is playing a brand new and positive role in world affairs and he would continue to contribute his efforts to boost mutual understanding and cooperation between the EU and China.

BEIJING, Dec. 21 (Xinhua) -- The Chinese government was taking such measures as deferring payment of social security funds in its latest efforts to reduce burdens of companies nationwide and foster stable employment situation, officials said here on Sunday.     In a notice jointly issued by the Ministry of Human Resources and Social Security (MHRSS), Ministry of Finance and State Administration of Taxation, troubled enterprises will be allowed to delay payment of social security funds in 2009 with the deferment period less than six months, MHRSS officials said.     Companies which are unable to pay social security funds are eligible to delay payment after authorization from the provincial governments, it said. No overdue fine will be imposed on these companies.     The notice also said the insurance rates for medical, work injury, unemployment and maternity will be allowed to temporarily cut back next year in some regions after authorization from the provincial governments. The pension insurance rate, however, should not be lowered.     China's social security system is made up of five parts: pension insurance, medical insurance, work injury insurance, unemployment insurance and maternity insurance.     The notice also encouraged troubled companies to conduct in-company training for employees and to apply necessary financial support from local governments.     In addition, troubled enterprises which refuse to lay off workers or dismiss fewer workers will be allowed to use unemployment insurance funds to pay social security subsidies, it said.

LONDON, Jan. 31 (Xinhua) -- Chinese Premier Wen Jiabao arrived here on Saturday for an official visit aimed at enhancing bilateral financial cooperation.     "Recent years have seen enhanced China-Britain comprehensive strategic partnership and fruitful cooperation in all areas." Wen said in a statement upon arrival.     "China successfully hosted the 2008 Beijing Olympic Games and Britain will host the 2012 London Olympic Games. This offers us a new platform to deepen mutual understanding, enhance friendship and expand cooperation," said Wen. Chinese Premier Wen Jiabao (R) shakes hands with British Prime Minister Gordon Brown during the dinner Brown hosts for him at the British prime minister's official residence on the outskirts of London Jan. 31, 2009. Chinese Premier Wen Jiabao arrived in London on Jan. 31 for a three-day visit to Britain    "In the context of the current complex and volatile international situation, China and Britain, two countries with major influence in the world, have broad common interests and a noble common mission in maintaining world peace, promoting common development, tackling global financial crisis and other fields," Wen said.     The premier said that he looked forward to having in-depth exchange of views with British leaders on regional and international issues of mutual interest, and extensive contact with the British people from all walks of life to explore ways to strengthen friendship and enhance mutually beneficial cooperation between the two countries. Chinese Premier Wen Jiabao (L) shakes hands with John Prescott, special representative of British Prime Minister Gordon Brown and former British deputy prime minister, at an airport in London Jan. 31, 2009. Chinese Premier Wen Jiabao arrived in London on Jan. 31 for a three-day visit to Britain"I am confident that with the joint efforts of both side, China-Britain comprehensive strategic partnership will continue to grow from strength to strength, bringing benefits to our peoples and contributing to world peace and development," said Wen.     During his three-day visit, Wen will have broad contacts with people from political, business and financial circles of Britain. He will also deliver a speech at the University of Cambridge, according to the Chinese Foreign Ministry.     The trip is a return visit for British Prime Minister Gordon Brown's China tour early last year. It is also aimed at implementing the annual meeting mechanism of the two leaders.     Britain is the last leg of Wen's week-long European tour, which began Tuesday and has already taken him to Switzerland, Germany, the European Union (EU) headquarters in Brussels and Spain.

BEIJING, Dec. 12 (Xinhua) -- Diplomats of China and the United States on Friday met in Beijing to discuss issues concerning central and south Asia.     China's Vice Foreign Minister Li Hui and Assistant Foreign Minister Hu Zhengyue respectively held consultations with U.S. Assistant Secretary for South Asian Affairs Richard Boucher, according to a statement released by the Chinese Foreign Ministry.     The consultations went on under the framework of China-U.S. Strategic Dialogue, which was initiated in 2005.     Both sides introduced their views and policy objectives on central and south Asia and pledged to continue consultations and coordination as a way of promoting peace, stability and development in those regions.