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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.

UNITED NATIONS -- China's special representative for climate change talks, Yu Qingtai, urged the international community to conduct substantive negotiations aimed at securing a new global post-2012 agreement on climate change by 2009.Speaking at the UN General Assembly debate on climate change, Yu said that the Bali roadmap, adopted at the UN climate conference last December by delegates from nearly 190 nations, is "only a beginning.""The international community must continue with the task of conducting substantive consultations and negotiations, so as to insure a final agreement on the post-2012 international cooperation on climate change within the next two years," he said.Yu emphasized that any framework for future arrangements must be firmly based on the principles established by the UN Framework Convention on Climate Change (UNFCC) and the Kyoto Protocol, particularly the principle of common but differentiated responsibilities.The four building blocks of the roadmap -- mitigation, adaptation, technology transfer and financing, are all important components for developing an effective framework for responding to climate change, and should be given equal attention, and none of them should be neglected, he noted.Urging developed countries to further strengthen policies and measures aimed at emission reduction, the special envoy said the concerns by developing countries over adaptation, technology transfer and financing should be addressed in earnest, so that they will have the capacity to make greater contributions to confronting the challenge from climate change."The effectiveness of participation by the developing countries will, to a significant extent, depend on whether the developed countries will take substantive actions on financial and technological assistance," he said. "Effective mechanisms should be set up as soon as possible to insure that measurable, reportable and verifiable assistance be provided to the developing countries with regard to financial resources, technology and capacity building," he said.China takes climate change "very seriously" and have adopted various policies and measures to respond to the challenge, with " noticeable success," he said."While making our own due contribution, we will also help other developing countries to enhance their ability to adapt to climate change," Yu added.Representatives, including some 20 ministers, from more than 100 countries and international organizations attended the two-day high-level session and exchanged views on ways to move forward the negotiating process launched in the Bali conference.

Businesses in the Taihu Lake area will have to pay heavy fees to discharge pollution into the lake and nearby waterways this year, officials from the Jiangsu environmental protection bureau said Thursday.The new regulation, approved by the State Environmental Protection Administration and the Ministry of Finance last month, is the first of its kind in the country. It will be implemented initially in Suzhou, Wuxi, Changzhou, Zhenjiang and Nanjing, all in Jiangsu Province.The move is part of a long-awaited campaign to limit the amount of pollution pumped into the region's waterways.Taihu Lake, which provides drinking water for about 30 million people in the provinces of Jiangsu and Zhejiang as well as Shanghai Municipality, has been heavily polluted by industrial waste, pesticides and fertilizer since the 1980s.The situation deteriorated in May last year when the lake suffered from a massive blue-green algae outbreak that threatened the water supply to more than 1 million residents of Wuxi.The government closed down some 2,800 small chemical factories after the bloom appeared.The water quality in the Taihu Lake area is expected to improve as the new rule takes effect, prodding companies to clean up their operations to avoid fines, an official surnamed Gao, with the publicity and education department of the provincial environmental protection bureau, said.The new regulation includes charges of 4,500 yuan (0) per ton for increasing chemical oxygen demand, a measure of the amount of oxygen used in a chemical reaction caused by chemical waste in water, or double what it costs to treat polluted water.Seven industries, including chemicals, textiles, iron and steel-making, and paper mills, which are believed to pose the biggest threat to water safety, will be subject to the fines.Companies discharging more than their quota of pollution will face fines of up to 1 million yuan. However, those that do not use up their quotas are welcome to trade the difference with other companies.

The government is to increase the level of pensions and housing subsidies for poor families in a bid to bridge the widening income gap. A State Council meeting chaired by Premier Wen Jiabao on Wednesday pledged to increase pensions for more than 40 million retirees from State-owned enterprises over the next three years. The government has already raised their pensions in the past three years by an average of 8 percent a year. But the cabinet considers the present pension level "still quite low". It said the increases over the next three years would exceed the rises made between 2005 and 2007 to "further ease social tensions caused by the income gap". The move is aimed at helping retired senior technology professionals and those who now get a relatively low pension. The cabinet ordered local governments to make sure this year's pensions are paid by the end of the month. While pledging to regularize pension increases, the cabinet also called for the development of other forms of pension rather than solely relying on the budget. It mentioned commercial and enterprise-funded insurance schemes. The average pension of enterprise employees is about 750 yuan (0) per month - the minimum salary set for developed cities, including Beijing. "With my pension, I can just about make ends meet. Consumer prices have kept on rising in the first half of this year," a 72-year-old retiree said. The cabinet also endorsed a plan to provide affordable housing to urban low-income groups. The policy aims to provide rent subsidies or low-rent housing for those who cannot afford commercial housing in the cities. By pledging to set aside more funding and land for the construction and acquisition of such housing, the government hopes to provide low-rent housing for all low-income urban residents - not just the poorest - by the end of 2010. The government aims to achieve this goal through multi-channels - construction, purchases, renovation and donations. "With the country's economic boom, it's time to share the pie with all levels of society," Chen Liangwen, an economic researcher with Peking University, said.

GENEVA -- China has reached understanding with the United States and Mexico on their alleged trade subsidy measures, sparing a WTO panel ruling on the case, the Chinese WTO mission said here on Thursday.Chinese Ambassador Sun Zhenyu signed respective memorandums of understanding with his US and Mexican counterparts "regarding certain measures granting refunds, reductions or exemptions from taxes or other payments" at the WTO headquarters on Thursday, the mission said in a statement.In the MOUs, China made it clear to the United States and Mexico that "the policy of exemption for certain foreign-invested enterprises from payments to the State for worker allowances is no longer operative."Besides, the policy of value-added tax (VAT) refund to enterprises for the purchase of domestically produced equipment does not constitute prohibited subsidies as provided by relevant provisions of WTO agreements."Other preferential policies on income tax pertinent to the disputes have been repealed or will be repealed along with the implementation of the new Enterprise Income Tax Law of China," the statement added.According to the Chinese mission, the MOUs will be notified to the WTO as mutually acceptable solutions to the above-mentioned dispute in accordance with the Dispute Settlement Understanding of the world trade body.The United States filed the case to the WTO in February and later was joined by Mexico. The two countries alleged that China was using tax breaks and other incentives to "subsidize" its exports, which might violate WTO regulations.A WTO panel was established in August to investigate the case, following failed consultations between the three sides.But the three sides finally reached understanding on the dispute through continued discussions.