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BEIJING, Feb. 20 (Xinhua) -- China is encouraging local governments to make full use of their financing vehicles in 2012 in an effort to boost financial support for low-income housing projects, the country's top economic planner said Monday.

Negotiations surrounding the agreement will be difficult, as they will require the adjustment of both sides' interests, Wang said, adding that the mainland is willing to give more consideration to mid- and small-sized enterprises in Taiwan and pay more attention to the appeals of local citizens.

Herbal medicines can survive for hundreds of years, whereas western medicines can be replaced within two decades, Hu said.

The drought relief authorities and the Ministry of Water Resources are keeping a close eye on the development of the drought.

Analysts say the impact from the price hikes will be limited to pushing up inflation, as product oil only accounts for 0.5 percent of the basket of goods used to calculate China's CPI.