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A Chinese national flag is raised atop a house, standing in the centre of a ten-metre-deep pit dug by the real estate developter, in southwest China's Chongqing Municipality, on March 21, a day before the deadline for the owner to move out sentenced by local court. [newsphoto] A photo of the solitary building has been circulating on the Internet, where it has been dubbed "the coolest nail house in history" a translation of a Chinese metaphor for a person who refuses to move from their home. A local court set a deadline of Thursday for the couple to move out. But the house remained intact on Friday afternoon. The owner of the house, Yang Wu, 51, used two steel pipes to climb up to his castle from the construction pit on Wednesday afternoon something most people would have found difficult, but an easy maneuver for the former martial arts champion. Two men walk past a house on a mound in the middle of a construction site in Chongqing on Thursday. A couple has refused to move out of their two-storey home, which is now the only building left standing in a 10-meter-deep pit. APHe carried a national flag and banner reading "No violation of legitimate private property", which he hung from the top of the house. Local residents look at a two-storey home, which is now the only building left standing atop a mound in a 10-meter-deep construction pit in Chongqing March 22, 2007. [newsphoto]With his relatives' help, he also took two gas bottles, mineral water and other necessities. Water and electricity supplies were cut off long ago. Yang's wife, Wu Ping, remained outside the house, answering questions from the media. She said they had not lived in the house for two and a half years. The building, formerly a restaurant with a floor space of 219 square meters, is located in Jiulongpo District. The local government plans to build a shopping mall and apartments on the site. More than 200 households were moved from the area in the past three years to make way for the development. But the couple refused to move because they were not satisfied with the compensation offered: 3.5 million yuan (3,000). Wu said they wanted a property of the same value, because the compensation money would not cover the cost of an apartment of the same size in that location. After negotiations between the couple and the local government reached a stalemate, the government took the matter to court in January. On Monday, the Jiulongpo District court ordered the couple to move out by Thursday. According to the court ruling, the couple would be forcibly removed if they did not move out of the house by the deadline. No action had been taken on Friday. Shanghai-based China Business News said an eviction of this nature would create unwanted attention for the government just after the Property Law was passed. It will come into effect on October 1. Property law expert Zhao Wanyi was quoted by Beijing Evening News as saying he was pleased that citizens were learning to safeguard their rights through the legal system. But he said it was a concern that by refusing to move out without adequate compensation, the couple could be accused of abusing their individual rights. "There is no absolute right," he said. Judge Li, whose court sent the notice, told the media on Thursday evening that the court would "follow lawful procedures to deal with the matter", but he refused to say when.

View of a steel-making factory on the outskirts of Shanghai February 1, 2007. [Reuters] New export taxes on polluting and energy intensive industries will help reshape how China's economy grows, but alone are not enough to resolve its trade imbalances with the United States, a top Commerce official said on Sunday. Beijing said last week it would impose or increase taxes on a range of metal exports in an effort to control shipments of high-energy products and ease its huge trade surplus. "You cannot expect to resolve the trade balance by simply curbing export patterns," Vice Commerce Minister Gao Hucheng said on the sidelines of a conference when asked about the changes. "These products make up a relatively small portion of exports. But the point is that this reflects changes in trade and economic growth, which will have advantages in the short term and even greater significance in the long term." The announcement of the tax changes came ahead of a "strategic economic dialogue" in Washington between high-level U.S. and Chinese officials at which China's huge trade surplus was a major bone of contention. But the high-level economic talks failed to ease trade rifts between the two economic giants, risking rising tensions ahead of the race for the U.S. presidency. Chinese Vice Premier Wu Yi and a delegation of ministers left the U.S. capital on Friday, after days of talks that made modest advances but were overshadowed by a lack of concrete progress on the key issue of China's currency. From June 1, China will impose a tax of between 5 and 10 percent on exports of over 80 types of steel products, a bone of contention with both the United States and Europe. Exports would not slow down much this year since most contracts had been signed already, but next year could see a big fall-off, said Li Xinchuang, vice-president of the China Metallurgical Industry and Research Institute.

The first national-level association of Taiwan-funded enterprises held its inaugural ceremony in Beijing yesterday - a move which experts say will help boost cross-Straits economic integration and peace. "Taiwan business people are all over the mainland now," said Chang Han-wen, the newly-elected chairman of the Association of Taiwanese-invested Enterprises on the Mainland. According to conservative estimates, there are at least 1 million Taiwan business people on the mainland. The national-level association, comprising heads of Taiwan enterprise associations and representatives of Taiwan enterprises on the mainland, aims to serve the island's enterprises, protect their legal rights, boost relations with the ministries in Beijing and strengthen communication with mainland firms. Chen Yunlin, head of the Taiwan Affairs Office of the State Council, said the island has chalked up a huge trade surplus with the mainland and its trade with the mainland has become an indispensable driving force of Taiwan's economy. "The mainland market provides huge potential for the expansion and industrial upgrading of Taiwan enterprises," he said. Xu Shiquan, vice-chairman of the National Society of Taiwan Studies, said that the establishment of the association coincides with the mushrooming of Taiwan-funded enterprises on the mainland. "Besides their number and scale, more and more Taiwan enterprises are keen to upgrade their industrial structure into the hi-tech sector," he said. "Though they usually forge local associations, faster expansion and a larger scale require a higher level of coordination," he said. Feng Bangyan, director of the Institute of Taiwan Economy at Jinan University in Guangzhou, said the association, which brings together many business heavyweights, would definitely pressure Taiwan authorities to grant more freedom for economic growth. "The secessionists forces on the island can't hinder the ever-increasing economic bonds linking the two sides across the Straits," he said.

Authorities were unable to accurately predict the recent weather conditions due to lack of equipment and an adequate forecast model, the national meteorological agency has said."We underestimated the duration and severity of the weather and failed to pre-evaluate its impact on transport and the power sector," China Meteorological Administration (CMA) spokeswoman Jiao Meiyan said.The CMA had forecast all five rain and snowstorms between Jan 10 and Feb 5 two to five days in advance. But it failed to alert the public to the extreme danger of the storms."One reason why the weather department could not make precise forecasts is because many of the places most affected were located in mountainous areas where meteorological monitors are in short supply," Duan Yihong, deputy director of the National Meteorological Center, said."Another major problem is that China's numerical weather forecasts still fall far behind world standards."Numerical weather forecasts, based on calculations by high-performance computers, are a core part of modern weather bulletins. China began to develop its own numerical forecast model less than a decade ago.There is a 10-year gap between the Chinese model and advanced foreign models, Duan said.The extreme weather also made it a huge challenge for Chinese meteorologists."It was increasingly difficult to forecast as low-probability extreme weather is occurring more frequently," Qiao Lin, chief weather forecaster of the Central Meteorological Station, said.To enhance the country's defense against extreme weather, China will begin to establish a monitoring and warning system, Jiao said.

The weakening global economic environment will slow down growth in Asia and the Pacific, too, this year, but China, India and Japan are expected to keep up the momentum in the region, says the Economic and Social Survey of Asia-Pacific 2007. The three economies contribute more than 60 percent of the region's GDP and close to 45 percent of its imports, creating considerable opportunities for the whole region, says the survey, to be released today by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). Developing economies in the region grew at 7.9 percent in 2006, up from 7.6 percent in 2005. But their economic growth is projected to slow down to 7.4 percent this year. The decline is mainly because of the unfavorable external environment, including the slowing down of the US economy and falling demand for electronics across the world, says UNESCAP Executive Secretary Kim Hak-Su in a recorded video on the commission's website. The survey shows investment continues to grow in China, while investment and consumption posted healthy gains in the two special administrative regions of Hong Kong and Macao. The survey, however, warns against several downside risks in the region, such as a possible oil price hike, abrupt cooling of the US housing market, vulnerability of the currency, global imbalances and reversal of the Japanese economy after its recovery. To ensure better long-term growth in the region, the survey suggests Asian economies monitor the vulnerability of the currency and boost domestic demand through private investment.