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HANGZHOU, Feb. 22 (Xinhua) -- Although the world financial crisis has cast a big shadow on China's prosperous eastern coastal regions, companies in these areas are very likely to see the first gleam of economic recovery in 2009, according to experts. Entrepreneurs said their confidence stems mainly from the enlarging domestic markets and increasing demand, which are backed by the government's powerful stimulus package and a series of favorable policies. POSITIVE SIGNS EMERGE Just two months ago, more than 60,000 businessmen in the eastern Zhejiang's Yiwu small ware town -- the world's largest small commodities market -- were tasting bitterness, as they faced declining foreign demand and fewer orders resulting from the global economic downturn. However, the turning point came after the country's traditional Lunar New Year holiday in late January. On the first trading day after the holiday, the commodity hub witnessed 165,000 customers, representing an increase of 10 percent over the same day last year, and the businessmen there were expecting more customers. Compared with the stagnancy of last year, the market regained its vigor as most of the trade dealers came to find business opportunities and increase their orders for commodities. Zhejiang's neighboring Jiangsu Province saw electric consumption surge. It used 443 million kwh of electricity on the first day of February. The figure rose sharply to 680 million kwh nine days later, indicating booming industrial production. DOMESTIC MARKET EXPANDED Confidence of businessmen in Zhejiang's Haining City was also bolstered by booming economic activities and increasing demands from domestic markets. The city is famous for leather industry. "Currently, we are not as worried as we were last year when the economic turmoil spread to every corner of the markets. I am really glad to see that my goods are still welcomed," said Zha Jialin, vice general manager of Haining Leather Town Co. Ye Xuekang, general manager of Haining Jinda New Material Co., also expressed his optimism, saying the company is under normal operation and products orders from domestic customers saw obvious increase. "Some of the production lines have to operate for a full 24 hours to meet the demands," Ye said. "It was the move to shift export destinations from overseas markets to domestic ones that helped us. Although various negative factors including surging prices of crude materials and currency fluctuation have almost strangled the company, the orders from new markets greatly offset the losses in foreign markets," he said. Economists noted that the government's efforts in adding investments, expanding vast domestic markets and increasing consumption are the biggest contributions to the country's economic recovery. In September, the government presented a four-trillion-yuan (about 586 billion U.S. dollars) stimulus plan as part of its efforts to cope with the financial crisis. Adding to the plan were ten industrial revival policies, which were expected to provide several pillar sectors with fund support, tax breaks and other favorable policies. Automobile, shipment and textile industries were among those that befitted. PRUDENT OPTIMISM TOWARD THE RECOVERY Zhuang Jian, a senior economist with the Asia Development Bank, told Xinhua, "The country's economy will gradually recover. However, the process may vary largely from one region to another, depending on economic development degree, enterprise's anti-risk ability, and fortune capacity in different areas." Zhang Hanya, deputy chairman of the Investment Association of China, echoed Zhuang, saying that compared with central and western areas, enterprises and local governments in eastern regions can do a better job. Zhang described their advantage as "natural abilities" -- the coastal areas in eastern China have long been served as the battlefront or the pioneers of the country's economic reforms. "As for the local governments in eastern areas, flexible policies, sufficient capital reserves and fiscal support are the musts to guarantee economic development," he said. Take Shanghai, another important economic engine of China, for example. The city's new Pudong area's car sales rose 15.8 percent in January over the same period last year thanks to a quick respond to the central government's automobile revival plan. However, experts warned against blind optimism about economic recovery, as the global economic situation is still complex and changeable. Zheng Yumin, head of Zhejiang Industrial and Commercial Administration, warned enterprises to cope with the "second-wave" of crisis attack, noting exports were still experiencing a tough time, trade-protectionism sentiments in some countries may make the situation even worse. "After all, we should keep alert," he said.
GENEVA, March 12 (Xinhua) -- China on Thursday blasted a U.S. measure blocking Chinese poultry imports, saying the "clearly discriminative measure" can serve as a good example for the WTO's training courses. The U.S. measure, or Section 727, is contained in the Omnibus Appropriation Act of 2009, which was approved by the U.S. Senate on Tuesday. It bans any funds from being used to "establish or implement a rule" allowing imports of poultry products from China. "It is needless to explain why such discriminative measure are forbidden by the WTO," said Zhang Xiangchen, deputy permanent representative of the Chinese WTO mission. "Perhaps we could send to the Institute of Training and Technical Cooperation of the WTO Secretariat a copy of this section, which would serve as a perfect example for their training courses," Zhang told a WTO meeting in Geneva. "I believe that any trainee with a preliminary knowledge will tell that this section violates the basic rules of the WTO including the MFN (most-favored-nation) treatment principle," he said. In a strong-worded statement, Zhang said he had got "a specific instruction from Beijing to express the serious concern of the Chinese government about the U.S. Omnibus Appropriation Act of 2009." "What should we, all WTO members, do to prevent such discriminative practice from undermining the multilateral trading system and sending wrong signal to the outside world at this critical juncture of global crisis?" said Zhang at the meeting. "How should we live up to our commitments repeatedly made both here at the WTO and at the G20 summit to resist trade protectionism?" he added. On Wednesday, the Chinese WTO mission in Geneva also sent a verbal note to the U.S. WTO mission. According to the note, the U.S. measure has triggered strong reactions in China, and the government is under increasing pressure from the poultry industries to "adopt related measures to poultry products imported from the United States." "China would raise complaints to the WTO in this regard and maintain the right of further measures," said the note. "At the same time, we would like to urge the U.S. to eliminate such kind of discriminative and trade protectionist provision as soon as possible in order to correct its wrong decision," it said. China and the United States banned imports of each other's poultry in 2004 following outbreaks of bird flu. They agreed to lift the bans at the Sino-U.S. joint Commission on Commerce and Trade in 2004. China did lift the ban but has complained that the United States was not following suit. China imported 580,000 tons of chicken products from the United States last year, accounting for 73.4 percent of total chicken imports, according to figures from the Chinese Ministry of Commerce.
BEIJING, Feb. 28 (Xinhua) -- The global financial crisis has not yet hit bottom and its impact is still spreading, said Chinese Premier Wen Jiabao during his first-ever online chat Saturday. He also promised that China is "ready to take firmer and stronger actions whenever necessary." The major impact of the crisis is on the country's real economy instead of its financial sector, which after more than 10 years of reform, is relatively stable and healthy and capable of withstanding the crisis, he said. Wen said China's east coastal areas were hit hard, where the economy is more export-dependent and labor intensive. The decline of international market demands also caused the unemployment of a great number of migrant workers. Chinese Premier Wen Jiabao prepares to chat with Internet surfers on two state news portals in Beijing, China, Feb. 28, 2009 China's gross domestic product (GDP) grew 9 percent year-on-year last year, the lowest since 2001, when an annual rate of 8.3 percent was recorded. To cushion the blow of the international financial crisis, Wen said China announced a package of stimulus plans covering four aspects. The first is the announcement a 4-trillion-yuan (588 billion U.S. dollars) economic stimulus and tax cuts. The second involves revitalizing ten key industries. The third is technical upgrading. The fourth is the building of a comprehensive social security network. INITIAL RESULTS, BUT TEMPORARY Wen said "the stimulus measures have shown initial effects and produced good results in certain areas and fields." For example, the country has seen consecutive growth in credit supply, with new loans standing around 440 billion yuan in November, 770 billion yuan in December and 1.63 trillion yuan in January, Wen said. He also cited figures on stronger retail sales and the rebound of power generation and use. Consumption rose 18 percent year-on-year in January, while power generation in the Feb. 11-20 period increased 15 percent year-on-year, or up 13.2 percent from the first ten days of this month, he said. "Some key indicators showed the economic situation has somewhat turned better," he said. "But those were just temporary indices and couldn't be fully compared with the past figures." Wen said one indicator he valued most was power generation. "Starting from mid February, power generation and consumption have both resumed growth," he said. "We must fully realize we are facing a long-term and arduous task," he added. "We must strengthen confidence in the face of the crisis and be ready to take firmer and stronger actions when necessary." CONCERNS ON EMPLOYMENT, INCOME GAP AND PROPERTY Wen said migrant workers had been hit the hardest during the financial crisis. About 20 million migrant workers in China had returned to the countryside from cities without jobs, said Chen Xiwen, director of the office of the central leading group on rural work, early this month. Other government officials estimated the number at 12 million. Wen acknowledged the accurate number is yet to be counted. He said migrant workers did not complain about the government and quietly returned to their hometowns, "some engaging in farming again, others still seeking jobs." "I want to take the opportunity to extend my gratitude to our migrant workers," he said, adding they had made great contributions to the nation. The government should encourage them to start their own business by offering tax stimulus and training opportunities, said Wen. He also expressed deep concerns over the employment issue of college students and jobless urban families. "Employment is not only related to one's livelihood but also one's dignity," said Wen. China's State Council, or the cabinet, issued a notice on Feb. 10 urging governments at all levels to make every possible effort to expand employment. When answering netizens' concerns over income discrepancies, Wen said narrowing the rich-poor gap could not be achieved "in a static state" and should be conducted alongside with economic development. He acknowledged that China's social and economic development does have the problem of "imbalanced, discordant and unsustainable" growth. The major problem is the imbalance between different regions, between the urban and rural areas and income imbalance, he said. Meanwhile, Wen said he still has confidence in China's economy and the development of Chinese enterprises. In a reply to complaints over the slumping stock market, he said he is confident about the capital market as its performance is decided by economic fundamentals and company profitability. The government has the responsibility to establish an open, fair and transparent market environment and resolutely fight against illegal acts such as manipulating the market, he said. Housing prices were among the most frequently asked questions raised by netizens during the chat. In response, Wen said he hopes to see a stable and healthy development of the country's real estate sector in the face of the global financial crisis. China should strengthen management and regulation to keep housing prices and the scale of property construction "at a reasonable level", said Wen. Housing prices have long been under fire in China, as consumers complain houses in large cities are too expensive to afford, giving developers unfair huge profits. Wen said the government highly values the property industry as it concerns the life of ordinary people and directly affects the national economy. The government has urged for stronger confidence in the real estate market while pledging more money and energy to meet the needs of low-income families, he said. The government fund must be used properly to ensure house construction is economical, safe and of good quality, said Wen. He also noted the construction should save land and suit people's needs. "Auditing and supervision should go along with all property projects," said Wen. "Problems must be dealt with whenever they emerge." Property prices in 70 major Chinese cities fell 0.9 percent in January from a year earlier, a faster fall than the previous month. In December, the figure saw the first year-on-year drop since the government started to release it in 2005.
BEIJING, Feb. 9 (Xinhua) -- Chinese Vice Premier Li Keqiang said Monday that employment and people's livelihood should be guaranteed. Li, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, made the remarks when visiting the southern Guangdong Province, a major base for export-oriented manufacturers that had provided jobs for many migrant workers. Li highlighted the importance of providing stable job opportunities, asking local governments to make every effort to support steady production of manufacturers and thus ensure employment. Professional training and employment guidance should be given to job seekers, especially migrant workers, to help them maintain their incomes, said Li. He also urged local authorities to strengthen support to enterprises and help them develop new markets and upgrade their technology.Chinese Vice Premier Li Keqiang (2nd L, front), who is also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, visits Yantian Port in Shenzhen, south China's Guangdong Province, Feb. 7, 2009. Li Keqiang paid a visit to Guangdong Province from Feb. 6 through 9.