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BEIJING -- China will gradually scrap restrictions on the destination, stock ownership and business scope of foreign investment in the service sector, a senior economic planner said in Beijing on Saturday.Zhang Mao, vice minister of the National Development and Reform Commission (NDRC), said the country would stick to its opening-up policy and promote a "quantity-to-quality transformation in attracting foreign investment".He added existing restrictions on foreign investment in key industries concerning China's national security and its citizens livelihood remained unchanged."The point (of the transformation) is to absorb advanced technologies and management skills from foreign countries," he said. "Foreign investment companies are expected play a positive role in this regard."Speaking at a multinational CEO roundtable on Saturday, he said foreign investment would be encouraged to enter high-tech, equipment and new material manufacturing and logistics businesses. He added the central and western hinterlands were open for foreign investment with more incentives.But Zhang stressed that foreign investors were restricted from setting up businesses for export only in China and banned from creating polluting projects and those that rely on consuming too much energy and resources.Chinese authorities would also help to create a sound investment environment by simplifying examination and approval procedures and steadily accelerating the free exchange of the country's currency under the capital account.The government would establish a cross-department supervision mechanism over foreign mergers and acquisitions in effort to safeguard national economic security, he said.Assistant Minister of Commerce Chong Quan said multinationals were encouraged to strengthen cooperation with their Chinese partners in promoting regional development, technological innovation, outsourcing services, product safety and exercising corporate social responsibility.Chong said his ministry had named 10 cities where "conditions are mature", the "base cities" of outsourcing services. They are Beijing, Dalian, Xi'an, Shenzhen, Chengdu, Wuhan, Nanjing, Shanghai, Tianjin and Jinan.By 2010, China's export volume of outsourcing services was expected to double that in 2005, he added. New foreign investment guideOn November 7, China released a new guide of industries open to foreign investment and foreign companies. It also listed those that were banned or restricted from entering the Chinese market.Foreign investors are invited to join efforts to promote the recycling economy, clean production, renewable energy utilization and ecological environment protection but prohibited from exploiting "important and non-renewable" mineral resources.The new guide replaced the 2004 version and takes effect on December 1.Since 1997, China has revised the industry guide for foreign investors on three occasions in hope of channeling foreign investment to serve the needs of industrial restructuring.The current policies to attract foreign investment were made 28 years ago when China was desperate for investment and foreign currency.However, the country has been the largest recipient of foreign investment among all developing nations for 15 consecutive years. A 2004 report to the UN Conference on Trade and Development noted the country attracted a per capita foreign investment of , much lower than the 4 per person that was invested in developed countries and below the world average of 7.Product safetyIn his speech at the roundtable, the assistant minister stressed that China has taken a highly responsible attitude towards product safety, urging multinationals to join the nation's efforts to guarantee product safety."Made in China" is a fruit of international endeavor because more than 50 percent of China's exports come from the processing trade sector, said Chong, "the exported products were manufactured in line with foreign standards and foreign customers' requirements," he said.Meanwhile, products made by foreign invested companies in China comprised a majority of the nation's exports, accounting for 58 percent of the total export volume, said Chong."China should not be the only one to blame for defective products," said the assistant minister, "product safety is a serious matter for the world as a whole and multinationals bear key responsibilities in coping with the challenge,"He said multinationals should keep a close watch on design, inspection and sales of their products and make sure their raw materials are up to safety standards.In the wake of headline food scandals, China's cabinet approved in principle a draft law on food safety to address the "weak points" in food production, processing, delivery, storage and sales at the end of October.The draft law proposed a food safety risk supervision and evaluation mechanism to provide a "key basis" for constituting food safety standards and food born disease control measures. The mechanism demanded a "unified, timely, objective and accurate" disclosure of emergency information.

WASHINGTON -- Financial systems in Asia appear well placed to handle the effects of the global financial market turbulence that broke out in July, said a report released by the International Monetary Fund on Friday.The report, Regional Economic Outlook: Asia and Pacific, explained that Asia was not at the epicenter of the recent turmoil, and markets and financial institutions in the region have been less affected to date than those in the United States and Europe."This reflects the relatively small direct exposure to US subprime mortgages and, more broadly, to leveraged and complex structured credit products, including by hedge funds," said the report.But it also warned that markets have begun to normalize somewhat at the time of this writing, although much uncertainty remains.The report expressed optimism about Asia's future economic performance, saying growth has been stronger than expected across much of the region, with domestic demand making an increasing contribution in a number of economies."China and India continued to lead the way, with high growth backed by strong investment, although the contribution of net exports to growth in China continues to rise," said the report."The pace of activity in the NIEs and ASEAN-5 remained solid, with strong investment in the former and strong consumption in the latter," the report added.The NIEs, or Newly Industrialized Economies, refers to Hong Kong and Taiwan of China, South Korea, Singapore. ASEAN-5 refers to Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.China is expected to increase 11.5 percent in 2007 and 10.0 percent in 2008, while India is projected to expand 8.9 percent this year and 8.4 percent next year.The Asian economies as a whole will grow robustly at 8.0 percent this year and moderately to a still-brisk 6.9 percent next year, said the report.

Rescuers take a rest outside a flooded coal mine in Xintai City, East China's Shandong Province, Aug. 18, 2007. One hundred and seventy-two miners were trapped in a flooded coal mine in Xintai, authoritative sources said on Saturday morning. [Xinhua]XINTAI, Shandong Province -- One hundred and seventy-two miners were trapped in a flooded coal mine in east China's Shandong province, authoritative sources said on Saturday morning.The flooding occurred at around 2:30 p.m. Friday in the coal mine of Huayuan Mining Co. Ltd (formerly known as Zhangzhuang coalmine) in Xintai City, about 150 kilometers south of Jinan, Shandong's capital.A total of 756 miners were working underground at the time of the flooding and 584 managed to escape after the accident, Xu Qinyu, general manager of the company said on Saturday morning.Downpours hit the area Friday with a precipitation of 205 millimeters, triggering flash flood and a 50-meter breach of a levee of the Wen river in the region.Floodwater from the Wen river swamped the coal mine via an old shaft. A 100-millimeter rainfall Saturday night worsened the flooding situation. The rain ended around 7 a.m. Saturday.By 8:50 a.m., the working places under the mine have been all inundated, according to the rescue headquarters.Wang Ziqi, director of the Shandong coal mine safety administration, said the trapped miners had only slim chances of survival.Most of the trapped people were from rural areas in Tai'an City and surrounding areas, said Wang Junmin, vice governor of Shandong.About 2,000 Chinese People's Liberation Army troops, armed police and miners have closed up a 30-meter section of the breached levee of the Wen river by midday Saturday.The closure of the breach is crucial to the rescue efforts and it will stop water from continuing to flow into the mine, according to rescuers.In a separate accident in Xintai, nine people were trapped in the Minggong coal mine after it flooded because of the rainstorms.Ninety-five people were working underground when the accident happened. Eight-six have been lifted alive. Rescue work is underway.Li Yizhong, director of the Administration of Work Safety and Zhao Tiechui, director of the State Administration of Coal Mine Safety, have rushed to the site to oversee rescue efforts.The work safety watchdog issued on Saturday an emergency notice urging coal mines to draw lessons from the Huayuan mine accident and immediately take preventive measures against rainstorm-triggered floods.Huayuan Mining Co. Ltd is a licensed enterprise with an annual capacity of 750,000 tons.Rescuers prepare to install the drain pipes outside the flooded coal mine in Xintai City, East China's Shandong Province, Aug. 18, 2007. One hundred and seventy-two miners were trapped in the flooded coal mine, authoritative sources said on Saturday morning. [Xinhua]Rescuers work outside the flooded coal mine in Xintai City, East China's Shandong Province, Aug. 18, 2007. One hundred and seventy-two miners were trapped in the flooded coal mine, authoritative sources said on Saturday morning. [Xinhua]

Yahoo co-founder Jerry Yang said on Wednesday that China is fertile ground for an online advertising exchange akin to the one the US Internet titan is buying. The comment was among insights Yang shared with more than 1,000 Chinese and US technology entrepreneurs gathered in the California city of Santa Clara to discuss opportunities and challenges presented by the meteoric growth of China's economy. US Internet giant Yahoo co-founder Jerry Yang during a presentation in a Tokyo hotel, March 2006. Yang said on Wednesday that China is fertile ground for an online advertising exchange akin to the one the US Internet titan is buying.[AFP] "I'm going to call Jack Ma up with this idea of an exchange for advertisers and ad buyers," Yang said, referring to the chairman of Chinese Internet company Alibaba.com. "The potential is huge." In August 2005, Yahoo invested one billion dollars for a 40 percent stake in Alibaba, which also agreed to run the Chinese operations of the US Internet giant. Yang said that as it neared its second anniversary, the Yahoo-Alibaba partnership has "some catching up to do" in the online search and portal business in China but that he expected a turnaround in a few years. "On the whole, we feel our move to partner with Alibaba so far looks like it's the right strategy," Yang said. "It is too early to tell whether we are successful or not." "The best strategy still seems to be Chinese and US companies sharing best practices ¡ª we all benefit." Yahoo is buying New York City-based online advertising exchange Right Media in a move to counter Google's move to acquire the DoubleClick Internet ad-targeting firm. The California online search titan, which owns 20 percent of Right Media, said it will acquire the remaining 80 percent of the company for 680 million dollars (500 million euros) in stock and cash. The ad exchange serves as a place where advertisers can easily "hook-up" with websites or online services that cater to desired customer demographics. While announcing on April 13 that it was buying New York-based DoubleClick for 3.1 billion dollars, Google revealed plans for the Internet ad tracking and targeting firm to create an open exchange similar to Right Media.

A brand-new labor contract law comes into force from the New Year's Day that is expected to markedly propel rights for billions of Chinese workers."The government that is making the most concerted effort to protect workers rights is China," said Auret van Heerden, Geneva-based head of Fair Labor Association, which monitors work conditions in 60 countries.That "goes against the conventional wisdom that China is leading the race to the bottom," the Bloomberg News quoted Heerden as saying on Tuesday.The Labor Contract Law aims to improve job security for workers, making open-ended terms of employment for those employees who have completed two fixed terms with the same employer. The legislation limits overtime, sets minimum wages and guarantees one month's pay for each year worked for sacked employees. It is the first time that China's top legislature, the National People's Congress Standing Committee, has ruled on open-ended work contracts and severance pay for fired workers.The new law will make it more difficult for companies to hire temporary workers, a practice favored by exporters to cope with fluctuations in orders.One side-effect of the legislation will be higher labor costs for all employers in China. It is estimated that some labor-intensive businesses will have to raise their selling prices, or move to other places with lower cost.Olympus Corp., the world's No.4 digital camera maker, and Yue Yuen Industrial (Holdings) Ltd., the biggest maker of shoes for brands such as Nike Inc., are among companies shifting some production to Vietnam to cut costs.According to Chinese press reports, some companies have been terminating contracts and asking employees to resign ahead of the introduction of the law.Huawei Technologies Co., China's largest maker of telecommunications equipment, offered 7,000 workers new contracts with benefits if they terminated their old agreements, spokesman Ross Gan said.Some employees accepted, while others chose not to sign and left, he said, without providing details. The move wasn't aimed at evading legislation, Gan said in an email to the Bloomberg News.

来源：资阳报