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Soaring global oil prices have led to small refiners drastically cutting down on production - forcing Sinopec to fill the void.Since the prices of refined oil products are set by the central government, the refiners - private or local-government-owned - find it unprofitable when the price of crude is as high as is now. Crude prices reached a record .80 a barrel at the New York close on Monday."Surging international crude prices are exerting mounting pressure on the local market (by discouraging small refiners). We are already running at full capacity to ensure fuel supply," Mao Jiaxiang, vice-president of Sinopec Economics & Development Research Institute, told China Daily Tuesday.Sinopec is Asia's top refiner, feeding the bulk of fuel consumption in China. But due to capacity limitations at its plants, there is a rising gap between demand and supply.Mao pointed out that fuel shortages are mainly triggered by the production drop at medium- and small-sized refiners scattered around the country, which contribute 5 to 10 percent of the country's supply.The National Development and Reform Commission (NDRC), the top economic planner, keeps a tight lid on domestic fuel prices to fend off inflation, only allowing refiners to set prices within an 8 percent band of a government-imposed benchmark.Sinopec will have more refining capacity on stream next year, which will help ease supply pressure, Mao said.This year, it is believed Sinopec may import more oil products from abroad if necessary. The company imported 60,000 tons of gasoline in September and sold it at a lower price.Gasoline retailers raised prices by 2.92 percent in the first nine months after crude costs climbed, the NDRC said in a statement on its website on Monday.However, the NDRC said last month that energy prices will not be raised "in principle" this year after the consumer price index (CPI) hit a 10-year high of 6.5 percent in August."As global crude prices and the CPI stay at high levels, it is possible for the authorities to seek a compromise by not raising fuel prices but giving subsidies to major refiners at the end of the year," said Niu Li, an economist with the State Information Center affiliated to the NDRC.

Chinese children have grown taller and heavier in recent years but their health is getting worse, a senior education official said on Wednesday, criticising pressure from parents and teachers to study. A pupil raises his hand to answer questions at a class in Jiaxing, east China's Zhejiang Province, in this photo taken on April 6, 2005. "The inappropriate educational concepts, which put study ahead of anything else and impose great burden on pupils, have seriously affected their healthy growth," said Liao Wenke, an official in charge of youth development. "The endurance, strength and lung capacity of the children continue to fall - and rapidly, especially in the last 10 years," Liao told a news conference. The average height of children aged seven to 18 had increased by up to 1 cm in 2005 from 2000, and the average weight had also risen - but the performance in sports had declined. "Obese schoolchildren are increasing in numbers swiftly, and the percentage of myopia remains high," he said. China now has the world's second highest myopia rate among schoolchildren, blamed in part on too much study, and obesity among the young has become a major health concern. Chinese parents and teachers pressure children to succeed at an early age, with holidays and leisure time often sacrificed for homework to ensure success in college entrance exams. The education ministry had urged schools nationwide to pay more attention to sports and lighten children's burden by reducing homework and increasing exercise, Liao said. President Hu Jintao also emphasised the importance of sports for children this week, urging local governments to use "healthy competition" to shape Chinese youth.

Aerospace experts saved the country's first ever manned space mission as the spaceship faced a potentially lethal impact while flying through the communications blackout area before landing, the country's space authorities revealed yesterday.China became only the third country to put a man in space, after the former Soviet Union and the United States, when Yang Liwei orbited the Earth in 2003 in what was a resounding success for its space program.But Xinhua News Agency reported that this was almost not so, quoting the Xi'an Satellite Monitor and Control Center's report on the dangers the Shenzhou V rocket faced."Yang lost every means to communicate with the ground command and control headquarters as he entered the ( Earth atmosphere), which fell in the worst-case scenario prepared by the space mission team," Xinhua quoted Dong Deyi, head of the center, as saying.Communications go down when any spacecraft re-enters the Earth's atmosphere, but in Yang's case, "even radar could not capture any signal from the returning module", Dong was quoted as saying. "After the Shenzhou V came out of the blackout area, the echo signals from the spaceship were still volatile, which sufficiently threatened the safe landing of astronaut Yang."Mission control promptly ordered optical guiding and tracking instead of a communication-guided landing, Dong was quoted as saying."Aerospace technologists used cinetheodolites (optical trackers) on the ground to measure the spacecraft's position and record movements. Precise positioning of the spacecraft enabled officers to properly control the slow-down parachute, which was vital to a soft landing."But the landing was 9 km east of the planned site, Dong said.China began its clandestine manned space program in 1992. The country has since spent at least 20 billion yuan (.64 billion) on the project and sent three astronauts into orbit.Dong also revealed that at least three orbiting satellites were malfunctioning during certain periods, but all had been salvaged by experts since October 2006.The Xi'an center, established on June 23, 1967, in the mountains of Northwest China, has monitored and controlled more than 100 satellites and the six Shenzhou spaceships. According to official records, China now has at least 19 satellites orbiting the earth.China plans to chart every inch of the moon's surface as part of its ambitious space program.China, which plans to launch a lunar orbiter called "Chang'e I" in the second half of this year to take 3D images, would aim to land an unmanned vehicle on its surface by 2010, Zhang Yunchuan, minister of the commission of science, technology and industry for national defense, said on Friday.Xinhua-Agencies

BEIJING - Floods and landslides have killed at least 360 people across China this summer and destroyed more than 4 million hectares (15.4 million sq miles) of crops, Xinhua news agency said on Wednesday. Direct economic losses were 24.3 billion yuan (.21 billion), according to latest figures from the State Flood Control and Drought Relief Headquarters. "Apart from 217,000 houses wholly or partially destroyed, more than 4.28 million hectares of grain crops have been hit, with 2.03 million hectares totally destroyed," headquarters deputy director Cheng Dianlong was quoted as saying. Most of the deaths occurred after downpours across the Jialing River Valley in the southwest province of Sichuan which have resulted in floods in almost all the tributaries of Jujiang River, a branch of the Jialing, and triggered severe mountain torrents, mud-rock flows and landslides. "Ferocious floods battered 40 counties along their route, submerging the downtown areas of four counties and shattering two small dams," Xinhua said. Cheng warned the situation across the Huai River Valley was at flashpoint with all trunk rivers there reporting dangerously high water levels. China flooded dozens of evacuated villages to ease pressure from the swollen Huai in the eastern province of Anhui. More rain was forecast for the next two days along the Huai, flowing through the central province of Henan and the eastern provinces of Anhui and Jiangsu. A total of 545 people were killed by natural disasters in China in the first half of the year, according to a report released by the Ministry of Civil Affairs. Another 78 people went missing as a result of natural disasters, including floods, landslides, mudflows, gales, snowstorms and earthquakes.

BERLIN - German Chancellor Angela Merkel Tuesday called for "good and intensive relations" with China.German Chancellor Angela Merkel addresses a news conference in Berlin January 15, 2008. [Agencies] "The German side is perfectly ready" to continue the sound relations with China on both economic and political levels, Merkel told a news conference in Berlin, in response to a question raised by Xinhua.The two countries have to rely on each other when it comes to international cooperation, said Merkel, who plans to visit Beijing in October for the Asia Europe Meeting (ASEM).The Chancellor said China played a "constructive role" at the climate conference held on the Indonesian island of Bali in December which laid a groundwork for a successor to the Kyoto agreement on cutting greenhouse gas emissions.She also wished China every success in hosting the Beijing Olympic Games.