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BEIJING, Dec. 26 (Xinhua) -- With a series of measures being adopted to curb price spikes, the Chinese government is confident of keeping prices at a reasonable level, Premier Wen Jiabao said Sunday morning."Inflation expectations are more dire than inflation itself," Wen said, urging people to remain confident and government agencies to act to stabilize prices.The premier made the remarks while answering a listener's question during a radio broadcast by China National Radio.The consumer price index (CPI), a main gauge of inflation, rose to a 28-month high of 5.1 percent year on year in November, according to government statistics.Food price rises contributed to 74 percent of the CPI growth for the month.Wen said the country had a good agricultural supply base which gave the government confidence that it could stabilize prices.In a bid to control inflation, the government has also increased the bank reserve requirement ratio six times and lifted interest rates twice this year, he added.Further, authorities have introduced a package of measures including cutting fees for transportation of agriculture products and intensifying the crackdown on food price speculation.The overall price level, especially of major consumer goods, has now begun to drop, Wen said.

BEIJING, Nov. 27 (Xinhua) -- Two years of monetary easing policies helped China's economy emerge from the global financial crisis. Now, facing a runaway inflow of hot money, fast loan growth, and escalating inflation, China could become serious about tightening regulations to achieve a "soft landing".Analysts recently said China could see more interest rate hikes in the final month of 2010 in a bid to soak up excessive liquidity and prevent a potential overheating of the economy.Further, the People's Bank of China (PBOC) Deputy Governor Hu Xiaolian said on Oct. 24 that using multiple monetary policy tools to improve liquidity management and guide the money and credit growth back to normal would be the main task for the central bank in the remainder of this year.According to data released by the central bank Friday, in October those funds outstanding for foreign exchange (FOFE) hit 525.1 billion yuan (78.37 billion U.S. dollars), the second highest monthly record in history.That is to say, PBOC issued 519 billion yuan of Renminbi in October to purchase the same amount of fresh inflow of foreign exchanges, which usually enter the nation in the form of trade surplus, foreign direct investment and short-term international speculative funds."The huge inflow of hot money is an important reason behind the sharp rise in FOFE," said Zhang Ming, a researcher with the China Academy of Social Sciences (CASS).He noted, as the European debt crisis ceased, that speculative funds have returned to the emerging markets, notably after the U.S. Federal Reserve announced the second round of its quantitative easing policy."As the massive inflow of foreign exchange increases the domestic monetary base, it has become a major impetus of a broad money supply, which could exacerbate inflation," said Liu Yuhui, also a researcher with CASS.Hefty foreign exchange inflow usually goes together with soaring inflation. China's FOFE hit a record 525.1 billion yuan in April 2008. In the same month, China's Consumer Price Index (CPI), a main gauge of inflation, was up by 8.5 percent, which was unprecedented.Also, this October, the CPI rose by 4.4 percent, the highest amount in 25 months.Boosted by a massive trade surplus, the domestic monetary situation began easing in late 2008, as China's broad money supply exceeded 70 trillion yuan, surpassing the United States to become the world's largest.Li Daokui, a member of the monetary policy committee with the PBOC, said hefty money supplies posed huge risks to the nation' s banking system and, more imminently, would exacerbate the current inflation."The interest rate increase last month sent a signal that more such increases will come in the future," he said.

CAIRO, Nov.9 (Xinhua) -- Diplomats from Arabic countries and China hailed on Tuesday the relations in various fields between China and Arabic countries, expecting further all-round development of bilateral ties."China has always regarded Arab countries as developing nations. And to strengthen the solidarity and cooperation with developing countries is one of the basic principles in China's foreign policy, " said Song Aiguo, Chinese new ambassador to Egypt.The friendship and cooperation relations between China and Arabic countries have been at fairly good levels, he said at a China-Arab relations seminar organized by the Cairo-based Afro- Asian Peoples Solidarity Organization (AAPSO), a mass nongovernmental body with national committees in more than 90 countries of the world -- in Asia and Africa, and associate member committees in Europe and Latin America.The Chinese government will stick to further developing its cooperation and friendship with Arab countries, he added.China and Arab countries have relations dating back about 2,000 years ago. China has diplomatic ties with all 22 members of the Arab League.The two sides have always been maintaining mutual respect, understanding and support, Song said, adding China always greatly supports the just causes of Arabic countries and their people.Song said China supported the efforts made by Arabic countries to solve the Middle East issues in a peaceful and fair way, the Arab Peace Initiative and the just cause of Palestinian people.Ahmed Hamroush, president of the AAPSO, said Egypt was the first country in the Arabic world and Africa to establish diplomatic ties with China. China-Arabic relations have experienced continuous development, he added, urging to further boost the ties.Nouri Abdul Razzak, secretary general of the AAPSO, said that China seeks a harmonious world. China-Arab relations have "win-win results", he added.Omar Hamdi, secretary general of Libya's Solidarity and Peace Committee, said he believed the China-Arab relations were promising, given the good historical bases.Hamdi said he hoped that the two sides would further cooperation in the fields of politics, culture and economy.Delegates from Morocco and Yemen also acclaimed the China-Arab ties and China's independent foreign policy of peace.In 2009, two-way trade between China and the Arab states hit 107.4 billion U.S. dollars, compared with 36.4 billion U.S. dollars in 2004. according to China's official figures.At the Fourth Ministerial Meeting of the China-Arab Cooperation Forum held in China's Tianjin on May 13 and 14 this year, China and Arab states agreed to upgrade their relationship to a strategic level and carry out an action plan for deepened cooperation in the next two years.

BOGOTA, Dec. 28 (Xinhua) -- Colombian Vice President Angelino Garzon on Tuesday met with visiting Chinese State Councilor Liu Yandong to discuss the development of relations between their two countries.Liu said the relations between China and Colombia had maintained a sound momentum of development since they forged diplomatic ties 30 years ago.Exchanges and cooperation in the fields of politics, economy, education, technology and culture had yielded rich fruit, and the two countries had maintained coordination and cooperation in international and regional affairs, Liu said.Both China and Colombia - two developing countries with extensive common interests - were shouldering responsibilities of economic development and improving people's livelihood, she said.China cherished the friendship with Colombia and wanted to join Colombia in advancing their friendly and mutually beneficial cooperation, Liu said.The Chinese state councilor also said exchanges and cooperation in the fields such as culture, education and technology had great potential for further development, which should be new spotlights in bilateral relations.She called for continued strengthening of technological and educational cooperation and expanding cultural exchanges.Garzon expressed his gratitude for the sympathy and condolences China had extended to Colombia over its severe floods.China-Colombia ties were developing well, and Colombia highly valued its relations with China, he said.Garzon also said the two countries had great potential in mutually beneficial cooperation, and Colombia was willing to expand cooperation with China in economy, technology, education and culture.Colombia firmly adhered to the one China policy, he said.After the meeting, Liu and Garzon attended a signing ceremony for cooperation agreements on education as well as science and technology.

MOHE, Heilongjiang, Jan. 1 (Xinhua) -- An oil pipeline linking Russia's far east and northeast China began operating Saturday.At 11:50 a.m., Yao Wei, general manager of the Pipeline Branch of Petro China Co., Ltd. (PBPC), pushed a button in the China-Russia border county of Mohe, Heilongjiang Province, five hours after the crude oil began being pumped through the pipeline to the border, marking the official start of operations after a two-month trial.PBPC is the operator of the Chinese section of the pipeline.The pipeline, which originates in the Russian town of Skovorodino in the far-eastern Amur region, enters China via Mohe and ends at China's northeastern city of Daqing. As 550,000 tonnes of crude oil had already traveled through the pipeline during the test run period, the Daqing terminal receives the oil 15 minutes after Yao pushed the button at Mohe."The operation of the China-Russia crude oil pipeline is the start of a new phase in China-Russia energy cooperation," Yao said at the launching ceremony.He noted that the pipeline would improve the nation's energy-imports structure and promote economic development.Sergey Tsyplakov, Russian trade representative in China, also said in early December that the completion of the pipeline project was a "milestone" for the development of both countries.Construction of the 1,000-km-long pipeline project, with 72 km within Russia and 927 km in China, started last year, and it will transport 15 million tonnes of crude oil from Russia to China annually between 2011 to 2030, according to the agreement signed between the two countries.This volume of oil means adding 8 billion U.S. dollars to the trade volume between China and Russia, and the import tariffs for China on the oil will be up to 10 billion yuan (1.5 billion U.S. dollars), according to the projection by Chinese customs officials based on the current international crude oil price.Yao said that after the oil arrives at Daqing's Linyuan Station it will enter the Pipeline Networks of Northeast China and be pumped to oil refineries in Dalian, Fushun and other cities.Luo Xuefeng, director with the entry-exit inspection and quarantine bureau of Mohe, said workers with the bureau would take daily oil samples to monitor the quality of the oil."So far, the pumped oil is qualified as regulated in the agreement," Luo said.The annual amount of oil shipped through the pipeline could increase, depending on the drilling capacity in Russia, said Tsyplakov.Further, Li Fuchuan, a researcher with the Chinese Academy of Social Sciences, said the operation of the oil pipeline would not only increase the crude trade, but also improve mutual trust between China and Russia, laying an economic foundation for the two countries' strategic partnership.Zhang Shibin, deputy manager of the PBPC Daqing branch, said although the operation has worked well during the trial period, measures need to be performed to prevent pipes from cracking in May."The pipe will face an 'important test' in May as snow and ice will melt at that time, bringing challenges to us. We will try to ensure its smooth operation," he said.

来源：资阳报