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WASHINGTON - US Treasury Secretary Henry Paulson will visit China's largest lake next week on a trip that will highlight global environmental challenges. Treasury Secretary Henry Paulson speaks during an interview with Reuters in Washington July 2, 2007. [AP]Paulson will also hold talks in Beijing with President Hu Jintao that will focus on the Strategic Economic Dialogue, high-level discussions launched last year in an effort to deal with economic tensions between the US and China. "This trip is part of an ongoing process to strengthen our strategic economic relationship - to address long-term issues such as working with China to rebalance its growth and increase the flexibility of its currency and also to address short-term issues as they arise," Paulson said Tuesday in announcing the trip. Paulson will begin the trip with a visit July 30 to Qinghai Lake, the largest lake in the country and an example of some of the environmental challenges facing China as it struggles to deal with pollution. "The only way to make progress on climate change is to engage all the large economies, developed and developing, to work toward embracing cleaner technology and reducing emissions," Paulson said. "What's happening with the environment in the middle of China not only affects the local climate and economy but also the global climate and economy." Paulson will meet on July 31 in Beijing with Hu and Vice Premier Wu Yi, who is leading the Chinese side in the strategic dialogue talks. The administration is coming under pressure from Congress to show results from these discussions, particularly in the area of currency values. American manufacturers contend that the yuan is undervalued by as much as 40 percent, which makes Chinese products cheaper for US consumers but makes it more difficult for US products to be sold in China. The first strategic dialogue session was held in Beijing last December with a follow-up meeting in Washington in May. The two countries have pledged to meet twice a year with the next session to take place in China later this year. An exact date has not yet been announced. The Treasury Department said in a statement announcing the trip that Paulson in his meetings with Chinese leaders would raise issues of concern to Congress as well as follow up on issues that were identified as priority items at the May meeting of the strategic dialogue. US lawmakers have grown increasingly unhappy as America's trade deficit with China has soared, hitting 3 billion last year, the largest ever recorded with a single country and one-third of the US total deficit with the rest of the world. Various bills have been introduced that would require the administration to take a harder line on the currency issue including pursuing economic sanctions if China does not move more quickly to allow its currency to rise in value against the dollar. China has reiterated that it does not manipulate its currency and the currency reforms are moving as quickly as the developing economy and financial system will allow.
Visiting Chinese Premier Wen Jiabao (L) is greeted by Japanese Prime Minister Shinzo Abe upon his arrival at Abe's official residence in Tokyo April 11, 2007. Wen arrived in Japan on Wednesday. [Reuters]TOKYO: Premier Wen Jiabao and his Japanese counterpart Shinzo Abe Wednesday agreed on concrete steps to build mutually beneficial strategic ties. Wen's three-day trip, the first by a Chinese premier in nearly seven years, comes six months after Abe went to Beijing to mend ties chilled by his predecessor Junichiro Koizumi, who repeatedly visited Yasukuni Shrine that honors Japan's war criminals of World War II. Yesterday, the two leaders declared their firm intention to move forward on rebuilding relations, signed agreements on energy and the environment and issued a joint statement that spelt out issues for cooperation. An environmental accord called for the two to work on a successor to the Kyoto Protocol on climate change by 2013. The other agreement committed the two nations to cooperate on developing energy resources and building nuclear power plants in China. In the joint statement, the two vowed to seek ways to jointly develop gas deposits in disputed waters, pursue the denuclearization of the Korean Peninsula, and strengthen defense cooperation. During their talks, Wen said that the history issue is crucial for bilateral relations as it affects the national feeling of the Chinese people. It could be an obstacle to improved ties if not handled well, he added. He urged the Japanese leaders to face up to history and "open up good, forward-looking relations toward a beautiful future". Wen also reiterated China's position on the Taiwan question, hoping the Japanese side can realize the acute sensitivity of the issue and deal with it properly. Abe reiterated Japan's commitment to the principles enunciated in the three joint documents directing bilateral relations. On disputed waters in the East China Sea, the two sides agreed to speed up the negotiation process to seek a solution that is acceptable to both. The two sides pledged to make the area "a sea of peace, cooperation and friendship". Wen arrived in Tokyo just hours after the two countries signed an accord lifting Beijing's four-year ban on Japanese rice imports. China banned imports in 2003, claiming Japanese rice did not meet the requirements of its revised quarantine system. Wen is scheduled to address Japan's parliament today. He will also meet Emperor Akihito and co-chair an inaugural meeting with Abe on a high-level economic dialogue that will involve officials at the ministerial level and above. He will even join in a game of baseball - a popular sport in Japan - tomorrow with college students in western Japan before returning. Meanwhile, Abe accepted an invitation to visit China again this year. Though no timetable has been set, it is widely believed that he will visit in the autumn to attend the celebrations marking the 35th anniversary of the normalization of bilateral relations. His trip is seen as setting the stage for President Hu Jintao's first visit to Japan next year.
Hong Kong' benchmark Hang Seng Index plunged 5.18 percent on Monday to close at its lowest level this year, drawn by growing troubles in the global credit markets and weakness in the Chinese mainland bourses. The Hang Seng Index fell 1,152.50 points, or 5.18 percent, to close at 21,084.61 on Monday, its lowest level in nearly seven months, amid worries on the near collapse of U.S. investment bank Bear Stearns. Over the weekend, the subprime mortgage crisis claimed another major victim -- Wall Street's fifth largest investment bank Bear Stearns. Wall Street fell sharply on Friday on the news, followed by Asian markets. The benchmark Hang Seng Index opened at 21,318.03 and fluctuated between 21,041.26 and 21,473.40 during the session. Turnover was at 94.37 billion HK dollars (12.16 billion U.S. dollars), up from last Friday's 88.28 billion HK dollars (11.32 billion U.S. dollars). Three of the four major categories lost ground. The Properties lost most at 5.73 percent, followed by the Commerce and Industry at 5.58 percent and the Finance at 5.32 percent. The Utilities, the only gainer, edged up 0.21 percent. The biggest decliners in the local benchmark index were mainly China-based companies. Index heavyweight China Mobile fell 4.6 percent to 102.50 HK dollars. Smaller rival China Unicom slid 4.6 percent to 16.32 HK dollars. Shenhua Energy fell 8.9 percent to 32.95 HK dollars, and Ping An Insurance was down 7.6 percent at 53.20 HK dollars. The Chinese mainland's biggest insurer, China Life Insurance, slid 7.4 percent to 25.70 HK dollars. Non-life insurer PICC P&C tumbled 11.5 percent to 6.48 HK dollars. Air China, Chinese mainland's biggest international carrier, lost 50 cents or 8.5 percent at 5.40 dollars as oil continued its relentless climb to a fresh high of 111.80 in Asian trade Monday on a weaker dollar. The company will report its 2007 results later Monday. The mainland's biggest airline by fleet size, China Southern Airlines skidded 73 cents or 12.5 percent to 5.13 dollars. PetroChina, Asia's biggest oil and gas company, dropped 6.6 percent to 9.42 HK dollars. Major oil firm Sinopec fell 8.1 percent to 6.14 HK dollars on investor concerns about steep losses at its refining division given the recent surge in crude prices. Property stocks tumbled, in line with the downward trend in the overall market, and on reports of softening housing prices in the city's new territories. Sino Land Co, which has the highest exposure to the local residential market, fell 11 percent to 15.42 HK dollars. Asian billionaire Li Ka-shing's property flagship Cheung Kong Holdings, fell 5.7 percent to 99.05 HK dollars. Hong Kong's biggest property developer, Sun Hung Kai Properties Ltd (SHK Properties), slumped 4.8 percent to 112.60 HK dollars. CLP Holdings and Hong Kong Electric were the only gainers in Monday's trade as CLP Holdings up 1.1 percent to 65.30 HK dollars and Hong Kong Electric rose 3.3 percent to 50.90 HK dollars.
After 18 months of deliberation and public consultation, legislators passed the long-awaited Labor Contract Law on Friday to improve workers' basic rights. The law, which would take effect on January 1 next year, won 145 of the 146 votes of the Standing Committee of the National People's Congress (NPC). One vote was not cast. The new law is considered the most significant change in the country's labor rules in more than a decade. It establishes standards for labor contracts, use of temporary workers and severance pay. It makes mandatory the use of written contracts and strongly discourages fixed-term contracts. According to the law, severance should be paid if a fixed-term contract expires but is not renewed without an appropriate reason. It is also stipulated that employers must submit proposed workplace rules or changes concerning pay, work allotment, hours, insurance, safety and holidays to the workers' congress for discussion. After the recent exposure of forced labor in brick kilns in Central and North China, the final draft added stipulations that government officials guilty of abuse of office and dereliction of duty would face administrative penalties or criminal prosecution. Xin Chunying, deputy chairperson of the NPC Law Committee, said the law is not intended to replace the current Labor Law but rather, to further standardize labor contracts in favor of employees. Li Yuan, one of the legislators in charge of drafting the law, said the law targeted bosses and officials who exploited workers. The draft law was first proposed in 2005 amid complaints that companies were mistreating workers by withholding pay, requiring unpaid overtime or failing to provide written contracts. Many workers were also becoming trapped in short-term contracts. Last March, the draft was made public for consultation, and legislators received about 192,000 public responses in a month. Only the Constitution, drafted in 1954, received more. However, business lobbies are worried that stricter contract requirements could raise costs and give them less flexibility to hire and fire employees. Both the European Union Chamber of Commerce in China and the American Chamber of Commerce in Shanghai (AmCham Shanghai) had made submissions to the NPC, suggesting the law might exert negative influence on foreign investment in China. In a letter to the NPC last year, Serge Janssens de Varebeke, then-president of the European Union chamber, warned the "strict" regulations could force foreign companies to "reconsider new investments or continuing their activities in China" because of possible cost increases. But Xin said there wouldn't be a substantial cost increase for companies that strictly follow the existing Labor Law. "All the principles have been included in the current law. The new law just details the provisions to facilitate implementation," she said.
Chinese photographers said the South China tiger on digital pictures, released by forestry authorities and widely discussed on the Internet, is a fake.A preparatory digital picture appraisal center under the China Photographers Society, released the results on Sunday after a team of photographic experts assessed the 40 digital pictures provided by NetEase, a Chinese Internet company.The State Forestry Administration, however, on Tuesday refused to comment on the authenticity of these pictures, saying its responsibility is to protect the wildlife.Cao Qingyao, SFA spokesman, did cite previous investigation resultsat a press conference in Beijing, saying the investigators found some traces of South China tigers in Shaanxi, and said a new investigation in the area is under way, and the results will be announced as soon as possible. The center said technological analysis from last Tuesday through Sunday showed the South China tiger on the 40 pictures was not real and could not serve as evidence for the existence of the wild animal.The pictures must have been taken by people with photographic experience or under guidance and could not be done independently by a person without any photographic experience, claimed experts.The digital picture, purporting to be a wild South China tiger crouching in the midst of green bushes, was released by the Forestry Department of northwest China's Shaanxi Province at a news conference on October12.Zhou Zhenglong, 52, a farmer and former hunter in Chengguan Township of Shaanxi's Zhenping County, photographed the tiger with a digital camera and on film on the afternoon of October 3, a department spokesman said.The Shaanxi forestry department said it had confirmed the 40 digital pictures and 31 film photographs were genuine.But the pictures released were not the original ones and they underwent modifications, such as time and signal, according to experts.Bao Kun, an expert who participated in the appraisal by the center, told Xinhua they announced the results out of "a citizen's sense of social responsibility."A detailed report concerning the appraisal would be announced in about a week, Bao added.In response to the appraisal results, the Shaanxi provincial forestry department said in a written statement to media that they had already "showed their attitude toward the South China tiger issue and would continue to pay attention to the matter.""We thank netizens and media for your care of the South China tiger and of the wildlife protection cause," the statement said, offering no direct comment on the appraisal results."In a statement on November 23 the department said: "We firmly believe this basic fact: That wild South China tigers exist in Zhenping county of Shaanxi Province."The South China tiger, from which other sub-species such as the Siberian tiger evolved, is listed as one of the world's ten most endangered animals.It is the only tiger subspecies native to China's central and southern areas. In the early 1950s, its population was 4,000 across the country. Since 1964, no sightings of wild tigers have been reported in Shaanxi.Its former habitats were in Guangdong Province, Guangxi Zhuang Autonomous Region and the central provinces of Hunan and Jiangxi.