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BOAO, Hainan, April 18 (Xinhua) -- Much has been talked about signs of recovery in Chinese economy, but little is certain about long-awaited rebound. Discussing the latest development of Chinese economy at the Boao Forum for Asia (BFA), worldwide officials, business executives and professionals remained prudent about China's 8-percent gross domestic product (GDP) target in 2009, but mentioned some favorable changes in the country's economy. Bob Hawke, former prime minister of Australia, forecast China's GDP growth between 7 percent to 8 percent. In the meantime, he believed a reversal had come. "The four-trillion-yuan stimulus (package) is now beginning to work, and China's economy ... has reached the bottom and started to come up now," Hawke told Xinhua at the forum. Increasing stress of sluggish exports, dampened employment and shrinking corporate profits have pulled down the Chinese economy to a growth of 6.8 percent in the fourth quarter last year. A favorable trend might be forming in the first quarter of this year. Ding Lei, president of Shanghai General Motors Corporation Ltd., observed increasing domestic demand for motor vehicles. "Our automobile exports remain low, but auto sales gained 12.9 percent in the first quarter compared with the fourth quarter last year," Ding said. "China's policy package to boost automobile industry has effectively activated domestic market, and boosted the confidence of companies," Ding said. John Cleland, chief executive officer of WestNet Infrastructure Group that has resources products trade with China, also noticed "some increase in demand". "It's very hard to say, but there are signs of recovery of (China's demand for resources products)," he told Xinhua. "Stockpiles of iron ore and steel in China have been reducing, so hopefully some projects that were put on hold have come back in the line," he said. "China will come through (the crisis) quickly. Resource demand will recover. The demand for iron ore and basic commodities will recover quicker than consumer economies," he said. Stable growth can also be expected in infrastructure. As China builds its nationwide mobile network, considerable and stable job opportunities can be created, said Per-Olof Bjork, general manager of Greater China Affairs of Ericsson Group Headquarters. However, the changes are mainly felt in industries covered in the government's stimulus package, and China might need to go through a more painstaking path to ensure healthy and stable economic growth. Chinese economy has shown more optimistic signals in the first quarter, but there are many uncertainties, said Chris Morley, managing director of Nielson China. One uncertainty is the grim global economic climate. The U.S. and European economies are struggling in the crisis, which means China has to seek more internal growth to make up for the loss in exports. The first quarter continued to see a slash in exports, which declined 19.7 percent year on year. Exports used to be one of three major sectors driving the Chinese economy, but it contributed negative 0.2 percent to the country's economic growth in the quarter. Existing problems made it more difficult for Chinese economy to stay away from the impact of global crisis. Yao Gang, vice chairman of the China Securities Regulatory Commission, commented that China's economy is facing a key era that calls for upgrading in development pattern and adjustment of structure. China's mission is not only to maintain stable economic growth, but also handle excess industrial production capacity, expand domestic consumption and reduce income gap, all of which demand sophisticated policies and persistent efforts from the government, Yao said at the BFA annual conference. On April 15, China's Cabinet, the State Council, urged faster implementation of the two batches of government investment, and kicked off the third batch. "Only approximately 30 percent of the scheduled investment has been injected into the Chinese economy," said Edgar Hotard, board chairman of Monitor Group (China). "If the rest 70 percent were also put into the economy, it would bring further growth." Rolf D. Cremer, dean of China Europe International Business School, said China reacted more swiftly and decisively than expected, maintaining a relatively stable growth rate, which allowed more room for adjustment and reform. Chinese economy was still on the growing path, with industrialization and urbanization acting as the two major growth engines, said Long Yongtu, secretary-general of the BFA. "I have always believed that Chinese economy will stop its sliding trend in a comparatively short time and return on the track of stable and rapid development," he said.
DAKAR, Feb. 5 (Xinhua) -- Chinese President Hu Jintao will pay a state visit to Senegal on Feb. 13-14, during which the two countries will sign new agreements on economic and technical cooperation, the Chinese ambassador in the West African country announced here on Thursday. At the invitation of his Senegalese counterpart Abdoulaye Wade, President Hu will make the visit to further enhance the friendly ties between the two countries since diplomatic relations were resumed in October 2005, Chinese Ambassador Lu Shaye told a press conference. The visit is part of the Chinese president's five-nation trip on Feb. 10-17, which will also take him to Saudi Arabia, Mali, Tanzania and Mauritius. The Chinese Foreign Ministry said on Tuesday that Hu's visit is aimed at further consolidating China's friendship and cooperation with these countries, strengthening China's cooperation with the Cooperation Council for the Arab States of the Gulf, and promoting the implementation of the measures announced at the 2006 Beijing Summit of the Forum on China-Africa Cooperation.

BEIJING, April 5 (Xinhua) -- China has approved 43 corporate bonds in the first quarter, a sharp rise from the same period last year, in support of the massive construction plan involved in the 4 trillion yuan (584.8 billion U.S. dollars) stimulus package, according to the data released by the depository house for China's major bonds. The 43 corporate bonds, of which five were issued by the central State-owned enterprises, totaled 66.73 billion yuan in value, according to the China Government Securities Depository Trust and Clearing Co., Ltd. In contrast, only 11 such bonds were approved by the National Development and Reform Commission (NDRC), the approving agency, in the first half of last year. Experts said more such bonds were allowed in a bid to echo the government's 4 trillion yuan stimulus package, which needed huge sums of money to power the massive infrastructure construction andother new projects. Of the total 4 trillion yuan investment, 1.18 trillion yuan is supplied by the central government. The rest will be financed by local governments and the private capital. Considering the huge demand by enterprises, NDRC would expand the corporate bond issuance scale to ensure economic growth, an NDRC official told Shanghai Securities News on Saturday. He said NDRC was working overtime to access the piled-up applications. Money raised by the bond issuance should not be used to make risky investment including shares, futures and real estate, the official stressed. Companies involved in the construction of infrastructure, sewage treatment, and energy saving would be given priority to issue debt, according to the official. Based on the current momentum, the total corporate bond sales would likely to top 300 billion yuan this year, analyst with the China Securities Co., Ltd told the newspaper. Although the bond sales was less than 70 billion yuan in the first quarter, but local governments and non-listed companies have shown great willingness to lend more. The bond sales is expected to peak in the latter of the year, said the analyst. Chinese government has been cautious on corporate debt issuance as the country lacks comprehensive legal system for bond market. Only 236.7 billion yuan of corporate bond were issued last year, compared with 812.5 billion yuan of treasury bond sales.
BEIJING, April 15 (Xinhua) -- China, the world's biggest manufacturer of electronics and information technology (IT) products, said Wednesday it will boost the industry's development to create more than 1.5 million new jobs in three years. The electronics and IT sector is expected to contribute at least 0.7 percentage points to China's annual gross domestic product (GDP) growth from 2009 to 2011, compared with 0.8 percentage points last year, according to a document approved by the State Council and published on the government Web site. That will provide new jobs for nearly 1 million college graduates, which are included in the total 1.5 million targeted vacancies, said the document. China's electronics and IT products sales surged at an average annual rate of 28 percent from 2001 to 2007, but slowed sharply to 12.5 percent last year amid the economic downturn. Sales in 2008 totaled 6.3 trillion yuan (920 billion U.S. dollars), with exports reaching 521.8 billion U.S. dollars, or 36.5 percent of the country's total export value. The government announced a support plan for the industry in February. The Wednesday document made clear details of the plan. The government will boost the industry by increasing state investment, credit support and export tax rebates, said the document. It also pledged to expand the domestic market for the industry and encourage innovation and restructuring. In the next three years, the country aims to achieve technological breakthroughs in strategic domains of the industry such as integrate circuits, new-type displays and software, according to the document. For instance, revenues from software and information service sectors will take up 15 percent of the industry's total, up from the current 12 percent. In addition, fresh growth will be cultivated in such fields as digital TVs and the new generation of mobile communications and Internet. The government said it will vigorously promote the overseas commercial use of its domestically-developed TD-SCDMA standard for the high-speed third-generation mobile communications.
PATTAYA, Thailand, April 11 (Xinhua) -- Chinese Premier Wen Jiabao, in an interview with Hong Kong and Macao reporters here Saturday, said that the Chinese economy showed signs of better than expected positive changes in the first quarter as a result of the economic stimulus package adopted by China. Firstly, the domestic demand rose on a sustainable basis. Meanwhile, investment in fixed assets increased rapidly and consumer demand grew steadily and relatively rapidly. Although lower from the same period of last year, imports and exports grew on a month-on-month basis in the three-month period, Wen said. This indicates that some sectors and enterprises in China are in a process of gradual recovery. Secondly, industries above the designated size registered month-on-month growth, with a year-on-year increase of 3.8 percent in both January and February, and a year-on-year increase of 8.3 percent in March. Thirdly, the purchase management index and the entrepreneur confidence index of the manufacturing industry both rose, indicating that the Chinese economy has begun to stabilize and recover in some fields, according to Wen. And fourthly, the market confidence went up and the economy became more active over the first three months, with increases in both the stock market and housing market transaction volumes. The positive performances in economic fields suggest that the policies adopted by the central government of China have been timely and correct, and have led to successes, the premier noted. The premier was here to attend the Association of Southeast Asian Nations (ASEAN) related summits. The Chinese premier went back home late Saturday ahead of schedule, after the Thai government postponed the summits because of domestic political unrest. The premier said we should see that China's economy is still facing very serious hardships, which can be attributed to the shrink of external demand and a relatively sharp fall in exports. This has negatively impacted export enterprises, export-oriented industries and export-oriented zones, and has resulted in decreases in business profit making, declines in financial revenues and heavier pressure on employment, he said. As the international financial crisis is deepening and spreading, we should never lose vigilance, Wen warned. As the crisis has not touched its bottom, we can hardly say that the Chinese economy alone has got out of the crisis. China cannot save the world, nor can it survive without the world, Wen said. What we should do is to exert our utmost efforts to minimize the effect of the crisis, he said. When answering questions whether China will introduce additional economic stimulus plans, Wen said the government should now step up efforts to carry out the policies and measures of the existing stimulus package. The earlier they are put into effect, the more beneficial and active they will be, he said. Firstly, it is imperative to release the additional investment for stimulating the economy that has been included into the budget. Secondly, specific rules for reforming and reviving a total of ten key industries should be formulated as early as possible. And thirdly, efforts should be made to speed up the development of the social security system, Wen said, adding that the national medical and health-care system reform launched in recent days, which has drawn international attention, should be implemented as early as possible. At the same time, it is essential to closely follow up the changing economic situation at home and abroad, and hammer out new response plans whenever necessary, said Wen. Priority should be given to strengthening social security, improving the people's livelihood and strengthening protection of the ecological environment, he said. In response to questions about the trial of cross-border trade deals in the Chinese yuan, Wen said the central government has decided to test the program in the city of Shanghai, as well as four cities in south China's Guangdong province -- Guangzhou, Shenzhen, Dongguan and Zhuhai. Hong Kong and Macao will be included in the pilot program, and ASEAN members will become the first group of foreign countries to benefit from the scheme, Wen said, adding the regulatory documents governing the pilot program will be issued in a short time, Wen said. The program will promote Hong Kong's trade development, and will help its enterprises, including those in the Pearl River Delta region and other areas in the Chinese mainland, to stave off the risks from exchange rate fluctuations, he said. This will invigorate Hong Kong's financial industry and underpin its position as an international financial hub, he added. Wen said that compared with developed countries, China, as a developing country, has undergone only a short period of time in its financial reform and development, lacking both experience and talented people, and there is also room for improvement in its financial system. At present, China allows the yuan to become convertible under the current account and it will take a long time to realize full capital account convertibility for the Chinese yuan, he said. Answering a reporter's question on whether building Shanghai into an international financial hub will rival Hong Kong's financial status, Wen said the Chinese central government has always paid close attention to the development of Hong Kong's financial sector. "I noticed that most of the media in Hong Kong showed support for the decision to build Shanghai into an international financial center, but lingering worries still remain," he said. Actually, the status of an international financial center is established not by a government decision but through market competition, he said. "I have said years ago that Hong Kong's status as an international financial center is irreplaceable due to its unique geographical advantage, a long history of financial management, extensive channels of financial operation, a full-fledged legal system and a rich pool of financial expertise," Wen said. However, Hong Kong's status as an international financial hub also meets challenges, he said. He added that what is imperative for the time being is to enhance regulation, maintain the stable, healthy and sustainable development of its financial sector, and to make due support for its economy. While developing the financial sector, Hong Kong should also spare no effort to tap the potential of its economic growth such as logistics, tourism, the health sector, science and technology, education, and high-tech industries, so as to lay a foundation forthe sustained economic development, he said. Responding to a question about the recent police investigation into Hong Kong-listed conglomerate CITIC Pacific, Wen said the issue should be addressed in accordance with the laws and financial supervision regulations of the Hong Kong Special Administrative Region, and no interference from the mainland or other parties will be allowed. Earlier this month, Hong Kong police searched the headquarters of the company, which reported huge losses from unauthorized hedging against changes in the exchange rates of Australian dollar last year. After all the facts are clarified, serious lessons should be drawn from this incident, including the company's management and its supervision, Wen said. On Macao's economic growth, Premier Wen said it has a unique economy powered mainly by its gambling industry. As the region continues to develop its gambling industry, efforts should be made to promote the region's economic diversity based on its own reality, he said. Macao's development is somewhat restrained due to its tiny area, but the central government is currently working on a long-term development plan of the Pearl River Delta to strengthen economic ties between Guangdong Province and Macao in an effort to promote Macao's development, said the premier. Because of Thailand's domestic situation, the Thai government on Saturday postponed the ASEAN related summits scheduled for April 11 and April 12. Wen said his visit to Thailand was designed to enhance the friendly cooperative relations between China and ASEAN and to make joint efforts with its members to tackle the global financial crisis. The Chinese premier said he had been aware of the situation in Thailand before his departure for the country, and his insistence on attending the summits indicated China's sincerity in this matter.
来源:资阳报