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WASHINGTON - China warned the United States on Thursday against "groundless smear attacks" against Chinese products and said it was working responsibly to address concerns over a spate of recent food safety scares. "The Chinese Government has not turned a blind eye or tried to cover up. We have taken this matter very seriously, acted responsibly and immediately adopted forceful measures," said a statement by China's embassy in Washington. "Blowing up, complicating or politicizing a problem are irresponsible actions and do not help in its solution," the Chinese mission said in a rare policy pronouncement. "It is even more unacceptable for some to launch groundless smear attacks on China at the excuse of food and drug safety problems," it said. Echoing the Beijing government's complaints about US media reports, the embassy said food safety concerns were not unique to China, 99.2 percent of whose food exports to the United States in 2006 met quality standards. Problematic US imports from China -- including toxic ingredients mixed into pet food and recalls of toy trains and toothpaste -- were isolated cases and "hardly avoidable" amid huge and rapidly growing bilateral trade, the statement said. "It is unfair and irresponsible for the US media to single China out, play up China's food safety problems and mislead the US consumers," it added. Appealing for strengthened cooperation between Chinese and US food inspection authorities, the statement urged Americans to "respect science and treat China's food and drug exports fairly."

The central bank raised the reserve requirement ratio for banks by 0.5 percentage point yesterday to mop up excess liquidity resulting from a soaring trade surplus and increased money supply. After the increase, which will take effect on April 16, the ratio will be 10.5 percent for big bankers and 11 percent for smaller lenders. It is the third time this year the People's Bank of China has raised the ratio after similar rises in January and February. The bank reserve requirement refers to deposits banks are required to set aside as a reserve, which reduces their lending ability. "The move is directly aimed at mopping up excess liquidity," Zhao Xijun, finance professor at Renmin University of China, told China Daily, adding the ultimate objective is to maintain stable growth of the economy. In recent months, the trade surplus has expanded rapidly and money supply remained at a high. In the first two months, China's trade surplus amounted to .61 billion, a stunning jump of 230 percent over the same period last year. In February, M1, or cash in circulation and deposits, increased 21 percent year on year, a record high for the past 37 months, indicating increased liquidity pressure. Meanwhile, banks have accumulated 11.1 trillion yuan (.44 trillion) of idle funds that can be used for lending. In January and February, domestic banks extended new loans of 982 billion yuan (7 billion), about 260 billion (.6 billion) more than a year ago. As a result, urban fixed-asset investment has picked up to 23.4 percent year on year in the January-February period from about 20 percent in the fourth quarter of last year, reversing the trend of a slight slowdown since last July. On another front, the consumer price index rose to 2.7 percent, close to the warning line of 3 percent, in February. "The central bank has been closely monitoring the growth trends of the economy and is taking preemptive measures to keep it on the right track," said Zhao. Such a strategy is different from past years, when it seemed to have resorted to rather drastic measures to seek instant regulatory effect, said Zhao. The central bank raised interest rates three times in the past year; the most recent of which came into effect on March 18. Tang Min, chief economist with the Asian Development Bank in China, said yesterday that the adjustment in the reserve requirement ratio may be followed by another hike in the interest rate.

The first ever white paper on political parties pledges multi-party cooperation and political consultation under the leadership of the Communist Party of China (CPC). Released Thursday by the Information Office of the State Council, the white paper, entitled "China's Political Party System", explains in detail the formation, characteristics and development of the system and its role in economic and social development.Multi-party cooperation is a political system that suits China's conditions, the paper says."China will not mechanically copy other countries' political party systems," the document says, adding that the history of modern and contemporary China has proven that blind emulation of the political or party systems of other countries will not succeed.Zhuang Congsheng, director of the research office of the United Front Work Department of the Central Committee of the CPC, said multi-party cooperation is different from the two-party or multi-party systems in Western countries and the one-party system practised in some other countries. China has established a unique political party system and its own way to fulfill democracy, he said.In China, the ruling party and other parties share the same ideal and same objectives, said Zhuang.The white paper says multi-party cooperation has created a new form of political system in the world.Under this system, the CPC and other parties work closely together and supervise each other, instead of opposing each other, with the CPC ruling the country and the other parties participating in State affairs according to law.By the end of 2006, 31,000 people who were not CPC members and those without party affiliation took up government posts at and above the county level, the paper says.Among them, 18 served as deputy chiefs in the Supreme People's Court, the Supreme People's Procuratorate, and ministries, commissions, offices and bureaus directly under the State Council.Minister of Health Chen Zhu and Minister of Science and Technology Wan Gang - both educated in Europe - are the first non-CPC members appointed to the Cabinet since the 1970s.Apart from the CPC, there are eight parties in China: Revolutionary Committee of the Chinese Kuomintang, China Democratic League, China National Democratic Construction Association, China Association for Promoting Democracy, Chinese Peasants and Workers Democratic Party, China Zhi Gong Dang, Jiu San Society and Taiwan Democratic Self-Government League.Xinhua contributed to the story

The country's trade surplus last month continued its downward trend, with efforts to curb exports paying off and imports rising, authorities said on Friday.Figures from customs authorities showed the trade surplus last month was .49 billion, below December's .7 billion and the record high of .1 billion set in October last year."For the first time since May, the trade surplus is under billion," customs said on its website.Exports rose 26.7 percent from a year earlier to 9.66 billion, while imports rose 27.6 percent to .17 billion, the government agency said. Import growth outpaced exports for the fourth month in a row.Experts said the surplus dropped due to policies put in place last year to curb exports. The authorities had introduced a raft of policies since early last year, including VAT cuts, to discourage exports of energy-intensive, polluting products."China's policies to encourage imports and cut the trade surplus are also helping a lot," Zhang Xinfa, an economist with Beijing-based China Galaxy Securities, said.As a result of the tightening policy, the processing trade last month was .85 billion, up 15.8 percent year on year. But the growth rate slowed by 9.9 points compared with the same period last year.The appreciation of the yuan also played a role in curbing exports."Many exporters are facing difficulties due to rising costs and the yuan's appreciation, and export momentum will ease in the coming months," Li Yushi, a researcher on trade with the Ministry of Commerce, said.According to Li Peng, spokesman for Asia Footwear Association, more than 1,000 shoe factories in Guangdong province closed down last year.The firms went bankrupt due to high costs driven by the removal of an export tax refund, a stronger yuan, rising raw material prices and labor costs, Li said.The stronger yuan also makes imports cheaper, which is one reason behind the strength seen in Friday's data, Zhang said.The European Union remained as China's largest trade partner last month, with bilateral trade of .28 billion, up 30.1 percent year on year.The EU was followed by the United States. Trade between China and the US last month increased by 12.2 percent year on year to .23 billion, despite looming recession in the US economy.China's trade surplus last year stood at 2.2 billion, with total trade volume hitting a new high of .17 trillion, up 23.5 percent from a year earlier.