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BEIJING, April 27 (Xinhua) -- China should still be alert to the credit crisis starting in the United States more than one year ago that has afflicted the Chinese financial sector and export, Ou Minggang, deputy editor-in-chief of Chinese Banker magazine, said on Saturday. Ou told Xinhua during an interview that domestic banks and other financial institutions bear the brunt of the widespread U.S. subprime mortgage crisis, as those agencies' asset value and book earnings would dip to some extent. "Currently the impact on domestic financial institutions is still limited," he said. The Industrial and Commercial Bank of China, the country's largest lender, said at the end of last month its 2007 net profit rose 64.9 percent year-on-year to 82.3 billion yuan (11.7 billion U.S. dollars). The Bank of China posted a 31.3 percent net profit rise in 2007 after booking 1.3 billion U.S. dollars as an impairment allowance for its 4.99 billion U.S. dollars in investment in securities linked to U.S. subprime mortgages by the end of last year. However, the International Monetary Fund (IMF) said on April 8 that the recent financial turbulence triggered by the collapse of the U.S. subprime mortgage market could cost the global financial system to the tune of 945 billion U.S. dollars. "The global financial system has undoubtedly come under increasing strains since October 2007, and risks to financial stability remain elevated," the IMF warned in its latest Global Financial Stability Report. Ou said, "The crisis also made Chinese financial supervision regulators face up to the challenges of balancing financial innovation and risks, which requires them to push forward the reforms in the country's financial system in a more cautious manner." Experts warned that financial risks know no national boundaries and some foreign capital has fled from the Chinese financial market as many banking titans including Citigroup and Merrill Lynch were in deep water in credit crisis. China's benchmark Shanghai Composite Index, which covers both A and B shares, shrank nearly half from the peak of 6124.04 points of Oct. 16 last year to 3094.67 points on April 18. The overnight announcement of a cut in share trading taxes drove Chinese stocks 9.29 percent higher in soaring turnover on Thursday, with the key Shanghai Composite Index up 304 points to 3,583.03, the largest gain since Oct. 23, 2001. Chinese regulators announced curbs on the sale of non-tradable shares that come out of lock-up periods on April 20, another move to bolster the falling market. However, market observers held that the credit crisis and the U.S. economic slowdown are still casting gloom over Chinese investors' confidence. Experts said the crisis was spreading beyond the financial sector. Consumption confidence in the United States is dampened as the credit crisis unfolded, with Chinese exports also hurt. From January to March, China's total exports rose 21 percent to206 billion U.S. dollars, 6.4 percentage points lower than a year earlier. The exports to the U.S. grew 5.4 percent to 53 billion yuan, 15 percentage points lower than the same period of last year, according to customs statistics. In the trade hub of southern Guangdong Province, the growth of exports to the United States dwindled to 4.8 percent in the first quarter of this year from 15.5 percent in the same period of 2007,said Wu Gongquan, vice director-general with the province's department of foreign trade and economic cooperation. Zhang Yansheng, director of the International Economic Research Institute under the National Development and Reform Commission, said China needs to shift its economic driving force from relying on exports to domestic consumption, technology upgrading and management innovation. Ou added that the country should increase financial transfer payments to help low-income families to consume more and boost the consumption in the vast rural areas. Experts suggested that Chinese exporters should upgrade their products mix and open new markets besides their traditional key markets in the United States and Europe.
TOKYO, May 7 (Xinhua) -- Chinese President Hu Jintao and Japanese Prime Minister Yasuo Fukuda signed here Wednesday a six-point Sino-Japanese joint statement on all-round promotion of their strategic and mutually beneficial relations. BILATERAL RELATIONS Both sides agree that the Sino-Japanese relationship is one of the most important bilateral ties for both countries. China and Japan have great influence and shoulder solemn responsibilities for peace, stability and development in the Asia-Pacific region and the world at large. Long-term peaceful and friendly cooperation is the only choice of the two countries. Both sides are dedicated to promoting a strategic and mutually beneficial relationship in an all-round way to realize the lofty goal of peaceful coexistence, friendship from generation to generation, mutually beneficial cooperation and common development. Chinese President Hu Jintao (L) shakes hands with Japanese Prime Minister Yasuo Fukuda after they signed a joint statement in Tokyo, capital of Japan, May 7, 2008. Visiting Chinese President Hu Jintao and Japanese Prime Minister Yasuo Fukuda signed the Sino-Japanese joint statement on advancing strategic and mutually beneficial relations on May 7. POLITICAL BASIS FOR STABLE DEVELOPMENT OF RELATIONS Both sides reiterate that the China-Japan Joint Statement issued on Sept. 29, 1972, the China-Japan Treaty of Peace and Friendship signed on Aug. 12, 1978, and the China-Japan Joint Declaration released on Nov. 26, 1998 constitute the political basis for the stable development of Sino-Japanese relations and the opening up of a bright future. The two sides reaffirm their continuous adherence to the consensus reached in joint press communiques between Oct. 8, 2006 and April 11, 2007 and their commitment for the comprehensive implementation of the consensus. NEW SITUATION OF SINO-JAPANESE RELATIONS The two sides agree to face history squarely, look forward to the future and make continuous joint effort to open up new prospect in their strategic mutually beneficial relations. The two sides will continue to build up mutual understanding and trust, expand mutually beneficial cooperation, and make sure that the future development of Sino-Japanese relations conforms with the trend of the world's development, and jointly create a bright future for Asia-Pacific region and the world at large. COOPERATIVE PARTNERSHIP The two countries reaffirm that they are cooperation partners, with neither side posing threat to the other. Both countries reiterate that they will support each other in its peaceful development and both are convinced that China and Japan, with both countries committed to peace and development, will bring enormous opportunities and benefits to Asia and the world. Japan highly evaluates China's development since its reforms and opening-up and its commitment to contribute to building a world of lasting peace and common prosperity. While China speaks highly of Japan's adherence to the path of a peaceful country in the past six decades and more since World War II and its contribution, through peaceful means, to world peace and stability. Both sides agree to strengthen dialogue and communication on the U.N. reform and seek more consensus. China values Japan's status and role in the United Nations and is willing to see Japan play a bigger and more constructive role in international affairs. ISSUE OF TAIWAN Japan reiterates adherence to its stance declared in the Japanese-Sino Joint Statement on the Taiwan issue. ALL-AROUND COOPERATION Both sides agree to a mechanism for high-level regular visits between leaders of the two nations, strengthen communication and dialogue between the governments, parliaments and political parties of the two countries, enhance exchange of views on bilateral ties, domestic and foreign policies, and the world situation. The two sides will also increase the exchange of high-level visits in the security sector to promote mutual understanding and trust. The two sides pledge to expand the exchanges of media, sister cities, sports and civilian groups between the two countries, and consistently promote exchanges of youngsters in a bid to enhance mutual understanding between the two peoples. Both sides decide to strengthen mutually beneficial cooperation in various fields, including energy, environment, trade, investment, information and communication technology, finance, food and product safety, protection of intellectual property rightand business environment. They are also keen on the development of bilateral cooperation in farming, forestry, fishery, transportation, tourism, water resources, medical care and others sectors. Japan and China will make an effective use of the summit economic talks between the two countries proceeding from a strategic perspective. The two nations also pledge to work together and make the East China Sea a sea of peace, cooperation and friendship. The two sides agree that China and Japan, as two important countries in the Asia-Pacific region, will keep close communication over regional affairs and strengthen coordination and cooperation. The two sides decide to jointly safeguard peace and stability in Northeast Asia and facilitate the process of six party-talks. The two sides agree that the normalization of relations between Japan and the Democratic People's Republic of Korea is of great significance for peace and stability in Northeast Asia. China welcomes and supports the two countries efforts to resolve relevant issues and realize normalization of their bilateral ties. The two sides agree to promote regional cooperation in East Asia and contribute to building a peaceful, prosperous, stable and open Asia in line with the principle of opening-up, transparency and tolerance. Noting that they bear greater responsibilities for world peace and development in the 21st century, the two countries are ready to enhance coordination over important international issues in a joint effort to build a world of lasting peace and common prosperity. The two sides decide to cooperate in coping with climate change after 2012 within the framework of the United Nations Framework Convention on Climate Change and in line with the principle of "common but differentiated responsibilities and respective capabilities" and the Bali Roadmap.

BEIJING, June 19 (Xinhua) -- China's top economic planner announced Thursday night the country will raise the prices of gasoline, diesel oil, aviation kerosene and electricity, revealing an unprecedented broad plan to raise energy prices. Beginning Friday, the benchmark gasoline and diesel oil retail prices will be marked up by 1,000 yuan (144.9 U.S. dollars) per tonne, with the price of aviation kerosene up by 1,500 yuan per tonne. The prices of natural gas and liquefied petroleum gas, however, would be left unchanged, according to the National Development and Reform Commission (NDRC). The benchmark retail prices of gasoline and diesel oil would be lifted to 6,980 yuan and 6,520 yuan per tonne, up more than 16 percent and 18 percent respectively. The price rises also translate into mark-ups of 0.8 yuan and 0.92 yuan per liter, the measurement used at service stations in China, for gasoline and diesel oil respectively. The commission said the oil price adjustment was made to ensure supplies in the country by diminishing the gap between continuously rising international crude prices, especially since February, and state-set domestic oil prices. Crude oil price on the international market reached above 136 U.S. dollars per barrel on Wednesday, up more than 45 percent from the price when the country raised oil prices in November last year. An employee changes the cards showing the prices of refined oil at a gas station in Beijing on the early morning of June 20, 2008The government-controlled oil prices on domestic market should be blamed for a shortfall of supplies, as some refineries stopped or cut back on processing to avoid losses, said an unidentified NDRC official. The commission said more subsidies would be offered to farmers, public transport, low-income families and taxi drivers to cushion the crunch of price rises. For instance, farmers would get five yuan per mu (1/15 hectare)of farmland in extra subsidy; low-income families in cities would get an extra 15 yuan for each person every month starting from July, 10 yuan for such rural families. The commission said fares for passenger travel by rail, urban and rural public transport and taxis would remain unchanged after the rise. The official did not comment on the impact of oil price rises on the inflation rate, which eased to 7.7 percent in May. In April, it rose 8.5 percent after a 12-year high of 8.7 percent in February. The commission also said the average electricity tariff will be raised by 2.5 cents per kwh starting from July 1, up 4.7 percent on average. It said the price rise was made in response to rising costs of the country's power plants, including rising power-coal prices, increased costs on desulphuration facilities and investment in grid upgrading. More than 80 percent of all the power generation companies suffered losses in the January-May period due to power-coal price rises. Official statistics showed that power coal prices went up by more than 80 yuan per tonne in the past two years. The prices had gone up by 60 yuan since the beginning of the year. The commission also announced the country would exercise temporary price intervention on power coal as of Dec. 31, and power coal prices are capped below the price on June 19. The policy was adopted as the commission expected the power-coal price to rise further because of the gap between domestic and international prices and tight supplies. The commission also said urban and rural residents and sectors of farming and fertilizer production, as well as the quake-hit provinces of Sichuan, Shaanxi and Gansu, will be exempt from the price rise. Industrial and commercial undertakings, however, would only see limited impact, as power expenses usually account for a small portion of their total costs, it said. "The price rise in electricity would not have a fundamental impact on the country's inflation rate," said the NDRC official.
BUCHAREST, May 6 (Xinhua) -- China's top political advisor Jia Qinglin said here Monday that China and Romania share the same task of opening up a new era in their all-round partnership of friendship and cooperation. Jia, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), China's top political consultative body, delivered a speech at a session of the Romanian Senate on Monday evening. In his speech, Jia explained China's policy and concept of peaceful development and mutually beneficial, win-win cooperation with other countries. He emphasized the willingness to further deepen friendship between China and Romania and advance China's relations with Central and Eastern Europe in an all-round way. Jia Qinglin, chairman of the National Committee of the Chinese People's Political Consultative Conference, delivers a speech at the Romanian Senate in Bucharest, Romania, May 5, 2008. Jia was warmly welcomed by Romanian Senators as he entered the meeting hall at the Parliament Palace under the escort of President Nicolae Vacaroiu. China and Romania enjoy a long-standing friendship. Romania is one of the first countries that recognized new China shortly after its founding. Since the two countries established diplomatic relations nearly 60 years ago, bilateral relations have been growing smoothly despite major changes in international situation and conditions in both countries. The two countries have been always supporting each other on international affairs and domestic development. Over the past few years, China and Romania have maintained frequent exchange of visits by high-ranking officials. Chinese President Hu Jintao visited Romania in 2004, when the two countries lift their relations to an all-round partnership of friendship and cooperation. "The true friendship and deep passion that the Romanian people cherish toward the Chinese people will always remain on the historical record of bilateral relations," Jia said in the speech. In the speech entitled "continuing the past, opening up the future and jointly creating a better tomorrow of friendship and cooperation", Jia said the two peoples have become friends of all weathers and that China-Romania relations have become an example of international relations. Jia put forward four proposals on further advancing bilateral links. First, the two countries should enhance political trust. They should continue to respect and treat each other as equals, never interfere in each other's internal affairs and pay attention to each other's concern. They should maintain high-level contact and carry out even closer exchanges and cooperation between their governments, legislatures and political parties so as to lay a solid political foundation for sustained development of bilateral links. Secondly, the two countries should expand trade and economic cooperation. They should expand trade and investment according to the principle of mutual complementarity, equality and mutual benefits. They should continue to give a full play to the role of their joint economic commission, encourage and support their companies to increase contact and explore new ways and methods of cooperation. Thirdly, the two countries should deepen cultural and humanitarian exchanges. They should continue exchanges and cooperation in such fields as culture, science, technology, education, sports, public health and tourism so as to add new content to bilateral links. They should further expand people-to-people exchanges, exchanges among local authorities and young people so as to consolidate the foundation of China-Romania friendship and add vigor to the development of bilateral links. Fourthly, the two countries should step up coordination and cooperation on international issues. They should join effort to build a fair, unbiased and rule-based multi-lateral system with the United Nations assuming the core role. Jia said China-Romania friendship is deep-rooted and fruitful and will enjoy an even better future. He called for the people of the two countries to join hands in strengthening their traditional friendship and all-round cooperation. Jia arrived in Bucharest Sunday for a four-day official goodwill visit to Romania. Romania is the first leg of his four-nation Europe tour, which will also take him to Hungary, Slovenia and Croatia.
BEIJING, Aug. 22 (Xinhua) -- Chinese President Hu Jintao met with British Prime Minister Gordon Brown here on Friday to exchange views on the Beijing Olympic Games and explore room for further cooperation in Games-related issues and other fields. Hu extended a warm welcome to Brown, who arrived in Beijing on Friday morning to watch the Games and attend the closing ceremony scheduled for Sunday night, and expressed thanks for the support the British government and people have rendered for the Beijing Games. Full storyChinese President Hu Jintao (R) meets with Australian Governor-General Michael Jeffery in Beijing, China, Aug. 22, 2008. Michael Jeffery is here to attend the closing ceremony of the Beijing Olympic GamesBEIJING, Aug. 22 (Xinhua) -- Chinese President Hu Jintao met with Australian Governor-General Michael Jeffery on the sidelines of the Beijing Olympics Games on Friday to renew the two countries' friendship and seek further cooperation. As two important countries in the Asia-Pacific region, China and Australia are principal partners for cooperation and share extensive and vital common interests, Hu said. Full storyChinese President Hu Jintao (R) meets with Icelandic President Olafur Ragnar Grimsson, who is here to attend the closing ceremony of the Beijing Olympic Games, in Beijing, China, Aug. 22, 2008BEIJING, Aug. 22 (Xinhua) -- Chinese President Hu Jintao met on Friday with Icelandic President Olafur Ragnar Grimsson on the sidelines of the Beijing Olympic Games to discuss bilateral relations and areas for further cooperation. China and Iceland have enjoyed traditional friendship and maintained friendly cooperation, said Hu. Such a relationship is a good example of equal treatment and friendly cooperation between countries with different social systems and at different stages of development, he addedChinese President Hu Jintao (3rd L) meets with President of the Commonwealth of Dominica Nicholas Liverpool (2nd R), who is here to attend the closing ceremony of the Beijing Olympic Games, in Beijing, China, Aug. 22, 2008
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