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BEIJING, Feb. 12 -- A sharp fall in imports and exports in January, which included a weeklong Spring Festival holiday, has both puzzled and alarmed economists. General Administration of Customs figures released yesterday showed exports plummeted 17.5 percent year-on-year, much sharper than the 2.8 percent fall in December. Imports fell even more dramatically, to 43.1 percent year-on-year. The combined foreign trade in January fell 29 percent year-on-year. Such a major decline in monthly foreign trade is rare in the 30 years of reform and opening up. General Administration of Customs figures released yesterday showed exports plummeted 17.5 percent year-on-year, much sharper than the 2.8 percent fall in December Because of the global economic downturn, foreign trade is likely to fall for several more months, the economists said. Su Chang, a macro-economic analyst with China Economic Business Monitor, said it could decline by 10 percent in the first quarter of this year. "It is possible that China's yearly record will be negative as well." But, he said the decline in imports would be largely because of the fall in prices of industrial materials. "Prices of primary goods - China's main imports - are at a low points now, while they were at historic highs just a year ago," he said. Last month, however, was an exception because it had one full week of holiday from January 26. The Chinese Lunar New Year is the most important festival for Chinese but usually it falls in February. So this year, January had five fewer working days than those in many of the previous years. If that is considered, the Customs said, exports actually rose 6.8 percent year-on-year in January. And compared with December, they increased 4.6 percent. The worldwide deflationary cycle was another problem, the economists said. The sharp drop in imports was caused both because of a fall in global prices (most noticeably of crude oil and farm products) and a drop in demand for electronic components, which reflected the shrinking of the country's manufacturing industry. Ting Lu, economist with Merrill Lynch in Hong Kong, said there was no good method to adjust for the Chinese New Year effects. "Our first suggestion: ignore them," Lu said in note to clients in the monthly trade figures. When compared with neighboring economies, experts said, China's record is not the worst. Jing Ulrich, analyst with JP Morgan, has written in a report that while the recent export slowdown has been alarming, it has not been as severe in China as in some neighboring economies that rely more heavily on the hi-tech sector. While Jing Wang, chief economist of Morgan Stanley, said China's export structure is more diverse, and as a result less volatile, in the region.
BEIJING, April 13 (Xinhua) -- House prices in 70 major Chinese cities fell 1.3 percent in March from a year earlier, the National Bureau of Statistics said Monday. The month-on-month figure, however, rose 0.2 percent in March. In the first quarter, the area of commercial houses sold rose 8.2 percent to 113 million square meters and sales jumped 23.1 percent to 505.9 billion yuan (74 billion U.S. dollars), the NBS said. Prices of new houses fell 1.9 percent year-on-year last month but rose 0.1 percent from February. Prices for second-hand houses rose 0.3 percent month-on-month despite of a decline of 0.4 percent from a year earlier. Analysts warned it was still too early to say the property market had revived, as sales were mainly driven by surging credit and by stimulus policies, such as tax cuts. Other indicators, such as land purchases by developers, had shown no signs of recovery. Floor areas of newly built houses in the first quarter tumbled 16.2 percent to 201 million sq m. The decline was 1.4 percentage points more than the January-February figure. Land purchased for homebuilding fell more than 40 percent in the first quarter to 47.42 million sq m, and the actual area developed shrank 11.3 percent to 52.2 million sq m. China Vanke, the country's biggest property developer by market value, reported on April 11 its first-quarter sales rose 21 percent to 12.22 billion yuan. Those of Poly Real Estate Group, the second-biggest, doubled to 6.48 billion yuan.
NANNING, March 25 (Xinhua) -- China's top political advisor Jia Qinglin called for reinforced efforts to sustain steady and rapid economic development amid global financial turmoil. He made the remarks during an inspection trip to the southern Guangxi Zhuang Autonomous Region during March 20 to 25. Jia Qinglin (C), chairman of the National Committee of the Chinese People's Political Consultative Conference, meets with residents at Bashan Village in Laibin City, southwest China's Guangxi Zhuang Autonomous Region, on March 20, 2009Jia warned 2009 could be "the most difficult year for China's economic development since the beginning of the 21st century." Jia, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), said the most important goal of macroeconomic control was to reverse the downward trend of economic growth. Jia Qinglin (C), chairman of the National Committee of the Chinese People's Political Consultative Conference, inspects Liugong Machinery Co., Ltd. in Liuzhou, southwest China's Guangxi Zhuang Autonomous Region, on March 22, 2009Trying to find ways to better cope with international financial downturn, Jia visited companies, workshops, towns and villages of ethnic Zhuang and Yao during the trip. The country should expand domestic demand, promote innovation and economic restructuring, as well as deepen its reform and opening up, and improve people's well-being, said Jia, who is also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee. He urged the local political advisory body to regard sustaining steady and rapid economic development and safeguarding social harmony and stability as their primary responsibilities.
BEIJING, Feb. 11 (Xinhua) -- China's State Council, or Cabinet, adopted a stimulus plan Wednesday for the shipbuilding industry at an executive meeting chaired by Premier Wen Jiabao. The meeting said shipbuilding is a modern, comprehensive industry that provides technical equipment for transportation, maritime development and national defense. Supporting shipbuilders would also help other sectors, including steel, chemicals, textiles, light industry, equipment manufacturing and information technology, it said. New orders for domestic shipbuilders are expected to fall to 20-30 million deadweight tons in 2009, compared to 58.18 million deadweight tons in 2008, according to the China Association of National Shipbuilding Industry The meeting agreed to increase credit support by an unspecified amount for ship buyers. It also decided to extend the existing financial support policies for oceangoing vessels until 2012. These policies include tax rebates on key imported components for domestically owned oceangoing ships. It said construction of new docks and the expansion of slipways should be suspended for three years to facilitate industrial restructuring. It also recommended investment in research and development of facilities to build high-technology ships and maritime engineering equipment and promote technical innovation. The meeting also approved a draft plan for fighting drought.
BEIJING, April 13 (Xinhua) -- China's Ministry of Finance (MOF) said Monday that fiscal revenue fell 0.3 percent from a year earlier to 440.22 billion yuan (64.43 billion U.S. dollars) in March. First-quarter fiscal revenue fell 8.3 percent to 1.46 trillion yuan, the ministry said on its website, while tax revenue shrank 10.3 percent to 1.3 trillion yuan. Fiscal revenue includes taxes as well as administrative fees and other government income, such as fines and income from government-owned assets. Business profits shrank as economic growth slowed, the MOF said, and tax cuts intended to spur the economy and the financial markets reduced government revenues. First-quarter business income tax revenue fell 16.7 percent. China halved the purchase tax on cars with engine displacements of less than 1.6 liters on Jan. 20, and revenue from that tax was down 7.6 percent in the first quarter. To shore up the stock market, the government cut the share trading stamp tax from 0.3 percent to 0.1 percent last April and scrapped the stamp tax on stock purchases in September. And even though the benchmark Shanghai Composite Index is up more than 35 percent so far this year, the tax cuts on share transactions meant a decline of 86.2 percent in revenue from that category in the first quarter. Actual revenue amounts in each category were not released. Customs tariff revenue fell 23.9 percent during the first quarter, the MOF said, without giving further details. Central government fiscal revenue fell 17.7 percent in the first quarter to 721.3 billion yuan, while local government fiscal revenue rose 3 percent to 742.9 billion yuan. First-quarter fiscal expenditures surged 34.8 percent to 1.28 trillion yuan, as both the central and local governments adopted a proactive fiscal stance to boost the economy and domestic demand. China unveiled a 4-trillion-yuan stimulus package in November to be spent over in next two years, with 1.18 trillion yuan from the central government. Fiscal revenue exceeded 6.13 trillion yuan in 2008, up 19.5 percent.