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SHENZHEN: Companies in the Pearl River Delta area, the country's manufacturing powerhouse, are raising wages to attract migrant workers amid fears of a worsening labor shortage, a survey has shown.The survey was conducted by the service center of Guangzhou human resources markets, which looked at 252 companies with at least 200 employees each.The poll found out that the average monthly salary offered to new staff was up 13 percent from last year at 1,160 yuan (2).The survey also showed that nearly 70 percent of the companies said they will hire new employees this year, up 20 percent from the same period of last year.Still, the number of job-hunters has decreased and are said to be more picky, the Guangzhou Daily reported.The first job fair in Guangzhou after the Spring Festival break on Friday reportedly offered about 7,000 vacancies, but attracted only 4,000 job-seekers.Figures from the Guangzhou labor authority showed that sectors such as the textile, toy-making, construction, catering, electronics and service industries were top of the list for workers.It was particularly difficult for the textile and toy-making industries to hire workers since such companies could offer an average monthly salary of just 960 yuan, far below what is available across the board, the labor authority said.The situation was said to be similar in other cities in the Pearl River Delta region, such as Shenzhen and Dongguan, which has seen industrial restructuring and experienced the impact of the new labor law, researchers said.However, research by the Asian Footwear Association showed that close to 1,000 shoemaking factories closed or moved out of the Pearl River Delta region last year, with 25 percent setting up in Southeast Asian countries, 50 percent in other mainland cities and about 25 percent adopting a wait-and-see approach."The industrial repositioning of the Pearl River Delta region has forced some of the companies in the region, especially those with less competitive edge in the market, to close or move out," Ding Li, a researcher with Guangdong Academy of Social Sciences, said."The flow of migrant labor has been a clear indication of that."The appreciation of the yuan, raw material price hikes and adjustment of export policies have also seen many private firms and companies funded by businesses from Hong Kong, Macao and Taiwan slowing down demand for migrant workers, the Guangdong labor authority said.

Communist Party of China (CPC) and Taiwan's Kuomintang (KMT) must "hold hands" to cooperate and to prevent crisis across the Taiwan Strait, Hu Jintao, general secretary of the CPC told a visiting delegation. Hu Jintao (R), General secretary of the Communist Party of China shakes hands with Lien Chan, honorary chairman of Kuomintang at the Great Hall of the People in Beijing April 28, 2007. [Reuters]"Let us hold hands to cooperate, prevent Taiwanese independence and preserve cross-strait peace," Hu said in welcoming Lien Chan, honorary chairman of the KMT, who is attending the third annual Cross-Strait Economic and Cultural Summit in Beijing today and tomorrow. Lien and more than 300 party officials and business leaders arrived in Beijing yesterday after touring provincial cities where they were welcomed by local officials. Lien met with Hu in 2005, and again last year, ending more than 60 years of animosity with the Communist Party. This meeting "will be a reiteration of their consensus for party-to-party cooperation to promote cross-strait peace," Philip Yang, a political science professor at National Taiwan University, said in a phone interview yesterday from Taipei. Win-Win The summit, which is focusing on direct flights, tourism and education, is taking place at a time when Taiwan's Democratic Progressive Party is accelerating efforts to split China's sovereignty. "We must insist on a win-win goal," Lien said to Hu. "Building mutually beneficial relations is a global trend. We must work closer together to achieve this." Since Lien's historic meeting with Hu in 2005, Beijing has allowed Taiwanese professionals to be accredited on the Chinese mainland and given Taiwanese students equal treatment in mainland universities. Cross-strait charter flights for Taiwanese investors living on the mainland have been expanded to all major holidays. In addition, Beijing opened its markets for tariff-free imports of Taiwanese fruit. Pandas Rejected The mainland offered Taiwan a gift of a pair of pandas, which "President" Chen Shui-bian and his "government" rejected. Beijing also offered to allow the Olympic torch relay to cross Taiwan's soil as a sign of goodwill in the run-up to the 2008 Beijing Olympic Games. The DPP-led "government" has promoted Taiwanese ethnic identity and tried to eliminate mainland culture, a move contrary to the interests of most Taiwanese, Lien said in his opening speech to the summit. "The DPP has reversed growth, caused political tensions and isolation and escalated an arms race and economic marginalization for Taiwan," Lien said. The DPP's moves are "dangerous and escalate cross-strait military tensions," Jia Qinglin, chairman of the mainland top political advisory assembly, said at the beginning of the summit.

A pair of young giant pandas will soon call Adelaide Zoo in South Australia home.The couple will be the first pandas to settle down in the southern hemisphere - the last time the endangered species were seen was nearly two decades ago during a visit to the Australasian region .President Hu Jintao and Australian Prime Minister John Howard signed an agreement yesterday formalizing the 10-year loan in Sydney.Hu said the move is a friendly gesture and the pandas will become a symbol of friendship.Australian Foreign Minister Alexander Downer said after the signing ceremony that he played a key role in working with the Chinese to borrow the pandas as part of a global survival program."I love animals and I think the giant panda is one of the truly great animals of the world," said Downer.A native of Adelaide, Downer was excited that China agreed to send the pandas to the zoo where his grandfather was once the chief.It is hoped that the two-year-old male "Wang Wang", or "Net" and one-year-old "Funi", or "Lucky Girl", will breed when they reach sexual maturity.The two pandas are from the Wolong Nature Reserve in Sichuan Province and they were named by the public earlier this year, said Zhang Guiquan, a director at the reserve.Chris West, CEO of the Royal Zoological Society of South Australia, said that the pair's presence in Australia will signify international collaboration to secure a future for wildlife."We will send our staff to Wolong to receive training," West said. "Our staff will also visit the giant panda facilities at San Diego Zoo, where they have successfully bred and managed giant pandas, and the climate is similar to that in South Australia."The giant panda is unique to China and often serves as an unofficial national mascot. The animals were sent abroad as a sign of warm diplomatic relations or to mark breakthroughs in ties.In a related development, two giant pandas "Bing Xing", 7, and "Hua Zui Ba", 4, are scheduled to leave China today for a 10-year sojourn in Spain.Giant pandas are among the world's most endangered species. State Forestry Administration figures show 1,590 pandas live in the wild, mostly in the mountains of Sichuan, and more than 200 live in captivity in the country.

BEIJING - Chinese Defense Minister Cao Gangchuan will pay official good-will visits to Japan and the Philippines from August 29 to September 6, according to the Chinese Defense Ministry.He will visit the two countries at the invitations of Japanese Defense Minister Koike Yuriko and Philippine Secretary of Defence Gilbert Teodoro.Cao's upcoming visits aim to fulfill the consensus reached between leaders of China and the two countries and strengthen exchanges and trust in defense and security areas, the Defense Ministry said in a statement on Thursday.

China is tightening its grip once more on foreign investors in Chinese real estate, banning them from borrowing offshore in the latest effort to tame property prices and cool the economy. The new rule, set out in a circular from the State Administration of Foreign Exchange , could squeeze foreign investors who take advantage of lower interest rates outside China. Some may find it especially difficult to fund projects as Beijing has told its banks to cut back on loans for the construction industry. The central bank ordered Chinese banks to stop lending for land purchases as far back as 2003. "The only alternative is to fund the entire equity," said Andrew McGinty, a partner at the law firm Lovells in Shanghai. "But that's not a very favoured method, because your internal return on investment goes down dramatically." Property funds operating in China tend to borrow to fund at least 50 percent of a project's value. The circular, which the currency regulator sent to its local branches in early July but has not yet published on its Web site, also increases red-tape for foreign property investors. Investors seeking to bring capital into China to set up a real estate company must now lodge documents with the Ministry of Commerce in Beijing -- not just with local branches of the ministry, according to the new circular with de facto effect from June 1. That process could take a month or more, said an official at the Ministry of Commerce, declining to be identified. "What we mean is very clear: First we are targeting foreign real estate firms that are illegally approved by local governments," a SAFE official said. McGinty said the new rule would reduce foreign investment in the real estate sector, but the real impact would depend on how it is enforced. UNCERTAIN IMPACT China has applied a raft of measures to rein in property investment, including interest rate rises and rules to discourage construction of luxury homes. Some steps have specifically targeted foreign investors, who account for less than 5 percent of total investment in the property sector. Foreign investors must now secure land purchases before setting up joint ventures or wholly owned foreign enterprises in China. However, funds such as those run by ING Real Estate, Morgan Stanley , Hong Kong's Sun Hung Kai Properties , Henderson Land Development and Singapore's CapitaLand Ltd. are pouring more money than ever into China to tap a middle class hunger for new homes and rising capital values. China's urban property inflation rose to 7.1 percent in June, compared with a year earlier, from 6.4 percent in May. McGinty said some foreign investors may eventually quit China for more interesting markets if an inability to employ leverage reduces their internal rate of return. However, others said they would stay on. "We are not too worried about it. Cooling measures won't stay forever," said Robert Lie, Asia chief executive for ING Real Estate, which has raised a 0 million fund to build housing in China. ING Real Estate borrows locally, partly to hedge its currency risk. Most other foreign investors in China do the same. Some foreign property firms that have been in China for many years have strong connections with local lenders -- Chinese banks as well as international banks incorporated in China. "There is still strong interest in China, although there will be some form of slowdown in the number of transactions," said Grey Hyland, head of investment at Jones Lang LaSalle in Shanghai. He said the new approval rules would further dampen the ability of foreigners to compete with local rivals. "It's still early to say how, because these rules are still very new and being tested," Hyland said. One consequence, he added, could be to drive foreign property investors inland to second- and third-tier cities that the authorities are eager to develop and where approval is therefore easier to obtain.