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BEIJING, Oct. 8 (Xinhua) -- China's central bank on Wednesday announced cuts in both the interest rate and reserve-requirement ratio in the latest effort to boost the domestic economy amid worries over the deepening global financial crisis.     The deposit and lending rates would be lowered by 0.27 percentage points from Thursday and the reserve-requirement ratio would be down by 0.5 percentage points from Oct. 15, the People's Bank of China (PBOC) said.     "This was mainly out of concerns over an economic slowdown," said Ba Shusong, deputy chief of the Finance Research Institute under the Development Research Center of the State Council.     "The rate cut was expected as the world was faced with a cycle of interest rate cuts," he told Xinhua.     OUT OF SLOWDOWN CONCERNS     The loosening in monetary policy, the second such move in less than a month, highlighted the government's rising concern over the slowing economy and slumping capital market.     The PBOC cut the benchmark one-year lending rate by 0.27 percentage points on Sept. 16, the first rate cut in six years. It also lowered the reserve requirement at medium- and small-sized lenders by 1 percentage point as of Sept. 25.     Tang Min, China Development Research Foundation deputy secretary, echoed Ba's viewpoint.     Tang said the government made the move mainly out of concerns over domestic problems. "The deepening U.S.-originated credit crisis has impacted the psychology of Chinese and also the real economy," he told Xinhua.     Investors, gripped by lingering fears of global economic downturn, dumped equities to drive the stock market down 66 percent from its peak last October.     China's gross domestic product (GDP) expanded 10.1 percent in the second quarter of the year, marking a deceleration for four consecutive quarters.     Its exports, a major driver behind the economy, reported slowing growth this year as the credit crisis reduced overseas demand for its goods. This has led to the closures of tens of thousands of local exporters and also job losses.     Local businesses bore the brunt of higher borrowing costs and were even finding it difficult to get credit after last year's tightening measures aimed at curbing inflation and averting economic overheating.     The easing in inflation has given room for the authorities to loosen monetary policy. The consumer price index rose 4.9 percent in August, off from the 12-year-high of 8.7 percent in February.     "Inflation is no longer a threat with the declining commodities prices," Tang said.     The monetary policy has been starting to loosen and the trend would not change in the short term, said Zhuang Jian, an Asian Development Bank (ADB) economist. "The whole world doesn't have strong confidence in the economic outlook."     TAX CUT TO BOOST DEMAND     In another move to boost domestic demand, the State Council, China's Cabinet, said it would scrap the 5 percent individual income tax on savings interest earnings starting on Thursday.     China began levying a 20 percent individual income tax on interest earnings in 1999 to narrow the income gap and encourage consumption and investment. The tax rate was slashed to 5 percent on Aug. 15, 2007.     The income tax cut was a must as it would help alleviate the erosion on personal income by high prices, especially given the cut in the deposit rate, Li Yang, head of the Finance Research Institute under the Chinese Academy of Social Sciences.     The tax cut, together with lower borrowing costs, would boost domestic demand, an increasingly more important driver of economy in the global credit crisis, Zuo Xiaolei, China Galaxy Securities chief economist, said.     GLOBAL COORDINATED RESPONSE     The move was also a timely response to the rate cuts by other major central banks and part of a coordinated effort to stem the global crisis, Tang said.     Six other major central banks, including the U.S. Federal Reserve, slashed interest rates on the same day to cope with the current financial crisis.     The U.S. Federal Reserve lowered its target for the federal funds rate by 0.5 percentage points to 1.5 percent. The Bank of England cut its rate by half a point to 4.5 percent and the European Central Bank cut by the same margin to 3.75 percent.     Central banks of Canada, Sweden and Switzerland took similar actions. The Bank of Japan said it strongly supported these policy actions.     Australia's central bank on Tuesday slashed the interest rate by 1 percentage point, the largest cut since 1992.

PYONGYANG, June 18 (Xinhua) -- The top leader of the Democratic People's Republic of Korea (DPRK), Kim Jong Il, met visiting Chinese Vice President Xi Jinping on Wednesday to highlight the warm ties between the two neighboring countries.     At the meeting, Xi conveyed Chinese President Hu Jintao's greetings to Kim. He also congratulated the leader on the 60th anniversary of the founding of the DPRK, wishing it even more and greater achievements in the future.     Kim, who is the general secretary of the Workers' Party of Korea (WPK) and chairman of the National Defence Commission, asked Xi to convey his greetings to President Hu, general secretary of the the Central Committee of the Communist Party of China (CPC). Kim Jong Il (R), top leader of the Democratic People's Republic of Korea (DPRK), meets with visiting Chinese Vice President Xi Jinping in Pyongyang, June 18, 2008.    Welcoming Xi, Kim said his visit to the DPRK reflects the great importance attached by China to developing the traditional friendly relations between the two countries.     Xi, a member of the Standing Committee of the CPC Central Committee's Political Bureau, is in Pyongyang for an official goodwill visit at the invitation of the WPK Central Committee and the DPRK government.     The DPRK is the first stop on Xi's first overseas trip since taking office earlier this year. He is also scheduled to visit Mongolia, Saudi Arabia, Qatar and Yemen.     Kim once again expressed condolences over the loss of life in the severe earthquake in China's Sichuan province. He praised the courageous deeds of the CPC, the Chinese government, the armed forces and the people of China during the rescue mission. Kim Jong Il (2nd R Front), top leader of the Democratic People's Republic of Korea (DPRK), and visiting Chinese Vice President Xi Jinping (2nd L Front) walk to the meeting hall in Pyongyang, June 18, 2008.Their work fully demonstrated the advantages of the socialist system with Chinese characteristics. said Kim.     He expressed the belief that under the strong leadership of the CPC and the Chinese government, the Chinese people will definitely be able to overcome the aftermath of the earthquake and successfully rebuild the quake-affected areas.     He also wished the Beijing Olympic Games all success.     Following the devastating earthquake of May 12, the WPK, the DPRK government and the people of the country expressed condolences to China in various forms, and also provided relief assistance, Xi said.     He hailed the successful Beijing Olympic torch relay in Pyongyang.     The Chinese vice president expressed his heartfelt gratitude for the support, which he described as a token of the deep feelings and profound friendship the people of the DPRK nurture toward the Chinese.     China is taking active steps to rebuild the quake-affected areas, he said, adding that his country is confident and fully capable of achieving success in combating the natural disaster while maintaining social and economic development.     China is capable of hosting a high-level Olympic Games with unique characteristics, Xi emphasized.     He said the traditional friendship between China and the DPRK was fostered by earlier generations of leaders from both countries and forged with the blood of the two peoples.     The people of the two countries have always understood, sympathized, supported and helped each other, said Xi, adding that the China-DPRK friendship is inalterable and has withstood international flux.     He said China is ready to work with the DPRK to add momentum to the development of bilateral relations.     China is ready to maintain high-level contact and deepen trade and economic cooperation with the DPRK, he added.     Xi made special mention of the China-DPRK friendship year to beheld jointly in 2009. He also proposed the two countries strengthen coordination on regional and international issues of common concern.     Kim said the DPRK-China friendship is an invaluable heritage handed down by the previous generations of revolutionaries of either nation. This friendship has been and will always be an invaluable treasure, he added.     It is the firm and unchangeable stance of the DPRK to unswervingly work for the development of the traditional DPRK-China friendship, the top DPRK leader pledged.     The year 2009 marks the 60th anniversary of the establishment of diplomatic ties between the two countries, which will jointly host DPRK-China friendship year activities.     The DPRK is ready to take this opportunity to join hands with China to further advance friendly and cooperative mutual relations, Kim said.     The two leaders also exchanged views on the six-party talks aimed at denuclearizing the Korean Peninsula.

BEIJING, April 28 (Xinhua) -- Jia Qinglin, member of the Standing Committee of the Communist Party of China (CPC) Central Committee Political Bureau and chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC),had a meeting with visiting Honorary Chairman of the Kuomintang Party (KMT) Lien Chan, his wife and his retinue.     Jia spoke highly of Lien's outstanding contribution to promoting the relationship between the CPC and the KMT and the cross-strait relations, as well as his role in fighting secessionist activities. Jia expressed his hope that the compatriots of the two banks will unite more closely and work together to open up a new chapter for the peaceful development of the cross-strait relations. Jia Qinglin (R), chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), proposes a toast to Honorary Chairman of the Chinese Nationalist Party, or Kuomintang (KMT), Lien Chan during a welcoming banquet held in the Great Hall of the People in Beijing, capital of China, April 28, 2008.     Jia thanked Taiwan people for their support to the Beijing Olympic Games as Lien has brought works of a Taiwan sculptor donated to the Beijing Olympic Sports Center. Mainland people will welcome athletes from Taiwan to participate in the Beijing Olympic Games in a most cordial manner, he said.     Jia recalled Lien's first journey to the mainland three years ago and the historic meeting between CPC Central Committee General Secretary Hu Jintao and Lien, then chairman of the KMT, which has turned over a new leaf for the CPC-KMT relationship.     The recent meeting between Hu and Vicent Hsiew in Bo'ao, Hainan Province, has received good response among people of different circles in Taiwan, which showed that Taiwan people have a common aspiration for strengthening the cross-strait exchange and cooperation, the CPPCC chairman said.     Lien also recalled his mainland trip three years ago which has been supported by the majority of the compatriots of the two banks, and the previous three economic and trade forums held by the two parties. He pledged to spare no efforts to safeguard the peaceful development of the cross-strait relations, so as to create a happy environment for the Chinese offsprings.     Jia hosted a banquet for Lien, his wife and his delegation

UNITED NATIONS, Sept. 25 (Xinhua) -- Chinese Premier Wen Jiabao has clarified China's policies of continuing reform and opening-up and seeking peaceful and common development during his just-concluded visit to the UN headquarters, Chinese Foreign Minister Yang Jiechi said Thursday.     During his 48-hour stay in New York, Wen attended the UN high-level meeting on the Millennium Development Goals (MDGs) and the 63rd annual general debate of the UN General Assembly.     Wen's visit was particularly significant in view of the increasingly complex international situation, the recent turbulence in the international economic and financial sectors, the sharp increases in oil prices and food supply shortage, and the whole world is keen to know in what direction China is heading after the Beijing Olympic Games, Yang told Xinhua. Chinese Premier Wen Jiabao delivers a speech at the United Nations high-level meeting on the Millennium Development Goals (MDGs) in New York, the United States, Sept. 25, 2008    During his visit, Wen declared China is determined to follow the path of peaceful development and stick to the policies of reform and opening-up, and an independent and peaceful foreign policy.     In terms of international relations, the premier said China is ready to develop friendly relations with all countries on the basis of mutual respect, equality and mutual benefit.     Wen said China, as a responsible and major developing country, is ready to work with other members of the international community to contribute to global peace and development.     Wen also reiterated China's commitment to promoting the world’s common development. In this regard, he gave a comprehensive account of China's achievements in launching programs aimed at providing assistance to poor areas, and its contribution to global poverty reduction and South-South cooperation.     The Chinese premier put forward several proposals aimed at speeding up realization of the MDGs and called on countries around the world to pay more attention to the issue of poverty and to increase international aid.     Wen also unveiled six initiatives adopted by the Chinese government in its mission to assist developing nations, including setting up a development fund under the Food and Agricultural Organization (FAO), helping to train agricultural technicians, increasing agricultural exports, writing off debts and tariff, as well as offering assistance in the construction of clean energy projects.     Referring to the U.S. financial turmoil, Wen said China was confident of coping with the negative impact of the current crisis.     Confidence-building is even more important than gold and currency in the face of financial crisis, he pointed out.     China will strive to maintain the stability of its macro-economy, financial and capital markets, which is vital for the stability of the global economy, he said.     Wen also expressed China's willingness to cooperate with the United States in addressing the crisis, while calling on the international community to show solidarity and make joint efforts in maintaining the stability of the financial market.     Wen's opinions were echoed by the participants at the meeting, who agreed that China was an important player in stabilizing the world economy and financial system.     Talking about the recent tainted milk formula scandal in China, which has drawn world attention to food safety in the country, Wen stressed that the Chinese government attaches great importance to food safety and has adopted effective measures to ensure product quality and food safety.     He said China will never try to pursue corporate profit or economic growth at the expense of people's health and lives.     Wen noted that China's exports will not only meet international standards, but also meet the specific requirements of the importing countries.     China is willing to step up cooperation with the Unites States and other nations to ensure food safety, he added.     On China-U.S. relations, Wen said the two countries share broad common interests and that China and the United States are not rivals but partners in cooperation.     Wen called on both sides to enhance dialogue and communication, deepen mutual trust and cooperation, and efficiently handle sensitive issues such as the Taiwan issue, in order to ensure a healthy and stable development of bilateral relations.     This is in accordance with the fundamental interests of the two peoples and is conducive to world peace, stability and development, and also conforms to the trend of history, Wen said.     He said the Chinese government has always attached importance to china-U.S. relations and will go all out to maintain and develop the constructive and cooperative bilateral relations, irrespective of which party comes to power in Washington.     During his stay in New York, the Chinese premier also met with representatives of overseas Chinese associations and the heads of local Chinese-language media.