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NANNING, Sept. 2 (Xinhua) -- Authorities in south China's Guangxi Zhuang Autonomous Region announced Wednesday the addition of 20 million yuan (2.94 million U.S. dollars) to a fund financing efforts to fight drought as hot, dry weather maintains its grip on the region. The Flood Control and Drought Relief Headquarters in Guangxi simultaneously launched a drought control response mechanism which requires local departments such as weather, water resources and power supply to cooperate closely to guarantee success of the efforts to fight drought. According to the local weather department, Guangxi suffered its hottest weather in 58 years from Aug.1-30, with the temperature averaging 28.9 degrees Celsius. The south Chinese region has had 1,152 mm of rainfall in the past eight months, a drop of 12.7 percent from the average level for the same period in normal years. It had rainfall of only 91 mm last month, down 57 percent from the average level for the same month in normal years. The Flood Control and Drought Relief Headquarters in Guangxi said 638,500 people, plus 299,200 livestock had been suffering from water shortages. And 280,850 hectares of cropland affected because of hot weather and less rain, included 598 hectares of crops that died in the arid conditions. The regional weather service's forecast Monday said Guangxi's drought would continue during the coming week. Guangxi has already made great efforts in drought control. More than 53.41 million yuan (about 7.86 million U.S. dollars) has been set aside so far. The region's department of water resources has dispatched five working groups to areas such as Laibin, Chongzuo, Wuzhou, Hezhou, Hechi, all in Guangxi, to supervise or guide drought control efforts. Zhong Xiangting, the department's chief, said the region had since late August mobilized more than 1.71 million people to fight drought, which has helped irrigate 148,470 hectares of crops and temporarily solve water shortages faced by 390,280 people and 193,110 livestock.
BEIJING, Aug. 11 (Xinhua) -- China's key July economic data adds to the optimism that the world's third largest economy is back on the track to recovery amid the global downturn, though challenges still persist. The July decline compared MORE POSITIVE CHANGES Both investment and consumption, two major engines that drive up China's growth, increased, according to statistics the National Bureau of Statistics (NBS) released Tuesday. Urban fixed-asset investment rose 32.9 percent year on year in the first seven months. Retail sales, the main measure of consumer spending, rose 15.2 percent in July, following a 15 percent growth in June. Graphics shows China's consumer price index from January of 2008 to January of 2009. The CPI was down 1.8 percent in July compared with the same month a year earlier, according to National Bureau of Statistics of China on Aug. 11, 2009Further signs of rebound in private spending supported a sustained growth recovery, Peng Wensheng, analyst at the Barclays Capital, said in an e-mailed statement to Xinhua. Although exports, another bedrock that fueled China's fast growth in the past few years, fell on a year-on-year basis last month, there were signs of improvement. China's foreign trade figures were better than they looked on the surface. July exports fell 23 percent from a year earlier, but increased 10.4 percent from June. Imports declined 14.9 percent year on year last month, but rose 8.7 percent month on month. According to the General Administration of Customs, the country's foreign trade has risen since March measured from month to month, and the trend of recovery had stabilized. Improvements in these data indicated China's economy was recovering and the government's policies to boost domestic demand and stabilize foreign trade had paid off, said Zhang Yansheng, a researcher with the National Development and Reform Commission (NDRC), the country's economic planner. Among other statistics released Tuesday, industrial output climbed 10.8 percent in July from a year earlier, quickening from 10.7 percent in June and 8.9 percent in May. Power generation, an important indicator measuring industrial activities, expanded 4.8 percent in July. Peng expected the country's economic growth to rise above 8 percent in the third quarter this year and 10 percent in the fourth quarter. POLICY STANCE UNCHANGED Despite these positive changes in China's economy, uncertainties still existed in world economic development and some domestic companies and industries faced difficulties, said Song Li, deputy chief of the Academy of Macroeconomic Research under the NDRC. As a result, the macro-economic policy orientation should remain unchanged, Song said. China's economy grew only 7.1 percent in the first half this year. This compared with double-digit annual growth during the 2003-2007 period and also the first two quarters last year. The government set an annual target of 8 percent for this year's economic growth, which was said essential for expanding employment. China unveiled a four-trillion-yuan (584.8 billion U.S. dollars) stimulus package and adopted proactive fiscal policy and moderately loose monetary policy to expand domestic demand, hoping increases in investment and consumption would make up for losses from ailing exports. To stimulate economy, lenders pumped 7.73 trillion yuan of new loans into the economy in the first seven months, the People's Bank of China, the central bank, said Tuesday. The surge in credit, however, sparked concerns over possible inflation and speculation about a shift in the country's monetary policy. Economists dispelled such concerns, saying consumer prices were still falling and the growth in new bank loans eased in July. The consumer price index (CPI), a main gauge of inflation, dipped 1.8 percent in July from a year earlier. The producer price index (PPI), which measures inflation at the wholesale level, fell 8.2 percent year on year last month. New lending in July cooled to 355.9 billion yuan, less than a quarter of the June total of more than 1.5 trillion yuan. Premier Wen Jiabao reaffirmed during the weekend that China would unwaveringly adhere to its proactive fiscal and moderate monetary policies in face of economic difficulties and challenges, like ailing exports and industrial overcapacity. Wen's stance echoed Zhu Zhixin, vice minister in charge of the NDRC, who underscored on Friday that there would be no change in China's macro-economic policy as the overseas market was still severe. He warned that any change in the macro-economic policy would disturb the recovery or rebound momentum, or even perish the previous efforts and achievements. "Efforts to keep a stable and fast economic development is the top priority of the country in the second half," he said.

BEIJING, July 31 -- China can expect to be a major target of rising trade protectionism - particularly from the United States and India - as the world struggles to recover from the global financial crisis, the Ministry of Commerce (MOFCOM) said Thursday. The crisis has pushed trade protectionist cases to a historical high. "The US is abusing trade protectionist tools to help its own industries tide over the economic slowdown. The loss for Chinese businesses is huge," said Zhou Xiaoyan, deputy director of the China Bureau of Fair Trade for Imports & Exports. As a consequence, China will have an even harder time than it does now, encountering anti-dumping, anti-subsidy and special protection cases, officials said. From last September to this June, the main World Trade Organization members, including the US and European nations, launched 77 cases worth .8 billion against China, increasing the number by 112 percent from a year earlier. Zhou said, moreover, that due to the sharp competitiveness of Chinese products and to the advantage it has of cheap labor costs, sufficient funds and high-quality technology, the country will be targeted for some time. The fair trade bureau, which is under MOFCOM, is responsible for dealing with trade protectionist cases. Cases centering on green barriers, such as a carbon tariff measure that the US might launch against developing nations to protect its businesses, will be another hot trend. China has especially been facing trade protectionist measures related to labor-intensive categories. The US and India have been among the most aggressive in the rising wave of protectionism, officials said. In April, for example, the US launched an anti-dumping and anti-subsidy investigation of oil-well steel tubing worth .2 billion, one of the largest ever for China. And also in April, the US launched a case against Chinese tire makers valued at about .2 billion, also the largest such case for China. The tire case, if approved by President Barack Obama in the fall, could spark a series of such cases by other nations. "The US has been a leader in launching measures against China," said Wang Rongjun, a professor at the Institute of American Studies of the Chinese Academy of Social Sciences. "The US," Wang said, "expects to transfer part of its economic slowdown to China, which is believed to be the quickest to recover." China and the US are each other's second-largest trade partner. The two nations have stressed since late 2008 that they have been fighting trade protectionism, including at the China-US Strategic and Economic Dialogue held in Washington this week. And in the case of India, it now has the most cases pending against China - from last September to June, it accounted for about 40 percent of the total. The cases cover a wide range of products, including textile, steel and chemicals. "As newly emerging nations are being brought directly into competing against China, the upward trend will continue," Zhou said. Despite falling exports, China still holds the largest share of labor-intensive products in the American and European markets, which threatens Indian businesses. "Compared with the US, India is far from reasonable," said Fu Donghui, managing director of the Beijing Allbright Law Firm, which deals with anti-dumping and anti-subsidy cases. "The Indians find any opportunity to challenge the Chinese. As long as there is any call from an Indian enterprise, the Indian government will launch an investigation, even without research." The MOFCOM plans to focus on cases involving the US and India. "We expect to find out the reasons behind that growth and learn how to avoid them in the future," Zhou said. For years, the Chinese government shied away from appealing to the WTO for help in battling trade protectionist measures. "The government should have actively appealed to the WTO to prevent foreign nations from abusing its rights," Fu said. China will now use the WTO tools to prevent its businesses from being hurt by foreign counterparts, but, nonetheless, it will be prudent, Zhou said.
MOSCOW, July 24 (Xinhua) -- A senior delegation led by Chinese Vice Minister of Commerce Gao Hucheng met with Russian officials on Friday and Saturday over the sudden closure of a market in Moscow. On June 29, some 150 Chinese merchants and a large quantity of their goods were seized in a crackdown on smuggling at the Cherkizovsky Market, Moscow's biggest wholesale market. The market was subsequently closed, causing heavy economic loss to the Chinese merchants who operate businesses there. No word has been given as to when the market will reopen. Gao stressed the China-Russia strategic partnership of cooperation during his consultations with Deputy Director of the Russian Federal Migration Service, Yuri Buriak, Deputy Economic Development Minister, Andrei Slepnyov, and Deputy Foreign Minister Sergei Borodavkin. Gao also spoke of the recent state visit of Chinese President Hu Jintao to Russia, the upcoming regular China-Russia Prime Minister's meeting in Beijing in October, and celebrations marking the 60th anniversary of the establishment of diplomatic ties between the two countries. He said under such circumstances, China and Russia should try to maintain their friendship and mutual trust, and properly handle problems arising from the development of bilateral ties. Non-governmental trade between China and Russia has its complicated historical origins, Gao said, and the remarkable contributions of Chinese merchants to the economic prosperity of Russia, especially during difficult times, should be taken into consideration. He said against the backdrop of the current global financial and economic crisis in particular, to deal with the abrupt shutdown of the Cherkizovsky market appropriately and scrupulously would be mutually beneficial to China and Russia. China has no objections to Russia's crackdown on smuggling, he said, but Moscow should effectively protect the property and dignity of Chinese businessmen. Russian officials from relevant ministries and departments all agreed that the market shutdown would not affect the long-time friendship between the two countries. They also emphasized that the shutdown was aimed at smuggling and not against the Chinese merchants, who make up less than 40 percent of all the merchants there. The Russian side also urged the Chinese merchants to comply with laws, and said the Moscow municipal government had started to help merchants move their goods. Slepnyov said a collective work plan against "grey customs clearances" will soon be studied. Gao, who arrived in Moscow on Wednesday, was accompanied by a delegation comprising of officials from the ministries of commerce and foreign affairs, the General Administration of Customs, and trade officials from Zhejiang and Fujian provinces. The delegation has also held negotiations with the Investigation Committee of the Prosecutor General's Office, the Federal Customs Service and the Moscow municipal government.
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