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BEIJING, Jan. 26 (Xinhua) -- Finance Minister Xie Xuren said Monday there would be growing difficulty balancing China's budget this year, and he urged officials to avoid unnecessary spending. In a Lunar New Year greeting on the ministry's homepage, Xie said that the external and internal conditions affecting China's social and economic development in 2009 were "very severe" and more difficulties had to be overcome to achieve "steady and relatively fast" economic growth. Xie said government funds should be used efficiently as the government carried out an active fiscal policy to support public investment while cutting taxes. To stimulate the economy, the government has raised export tax rebates three times since July, increased farm subsidies and endedthe value-added tax for equipment purchases -- a move that's expected to reduce companies' tax bills by 120 billion yuan (about 17.4 billion U.S. dollars) a year. Moreover, the threshold for individual income tax, which now stands at 2,000 yuan per month, is likely to rise. Although 2008 fiscal revenue grew an estimated 19 percent from 2007 to some 6 trillion yuan, the economic slowdown, falling corporate profits and tax cuts drove down fiscal revenue in the second half of last year. Last year, the economy grew 9 percent year-on-year, ending a five-year period of double-digit growth. Xie said earlier this month that the fiscal decline might continue this year. The Finance Ministry has imposed tighter controls on the general administrative expenditure of local governments. For example, local governments have been ordered to limit the year's spending on car purchases, meetings, catering and overseas travel to no more than the amounts spent last year. Jiangxi Province has urged officials to avoid unnecessary travel and vowed to cut meeting outlays by 20 percent from the 2008 level, catering expenses by 10 percent, and international business travel costs by 10 percent. Many local governments, meanwhile, said they would step up investment spending in 2008. Shaanxi Province, for example, said it planned to invest 40 billion yuan in education, job re-training, public sanitation and social security, up 21 percent from last year, while Henan Province will invest 40 billion yuan to raise living standards. These and other local governments announced investment plans after the central government put together a 4-trillion-yuan stimulus package in response to ebbing growth.
BEIJING, Oct. 17 (Xinhua) -- Vice President Xi Jinping expressed the hope to further boost exchanges between the Communist Party of China (CPC) and the French Union for a Popular Movement (UMP) here Friday. "As ruling parties of respective countries, the CPC and UMP both face the challenges from domestic reform and economic globalization," Xi told Patrick Devedjian, UMP general secretary, during their meeting here. Chinese Vice President Xi Jinping (R) shakes hands with Patrick Devedjian, general secretary of French Union for a Popular Movement (UMP), in Beijing, capital of China, on Oct. 17, 2008."We would like to further enhance exchanges and mutual trust to push forward the healthy and stable development of Sino-French ties," Xi noted. He said both China and France are influential countries and maintaining a good relationship complied with the fundamental interest of the two and was conducive to peace, stability and prosperity of the world. China valued the traditional friendship with France, and has always handled bilateral ties from a strategic height and a long-term perspective. Xi also expressed appreciation for France's support to improving the Sino-EU relations. Devedjian said China's development would benefit the world, and the UMP would strengthen relations with the CPC and the Chinese government to contribute to the development of China-France relations.
UNITED NATIONS, Jan. 27 (Xinhua) -- Zhang Yesui, the Chinese permanent representative to the United Nations, met with Susan Rice, the new U.S. ambassador to the world body, here on Monday afternoon, and they exchanged views on the Sino-U.S. relations and other world and regional issues of common concern, diplomatic sources said here Tuesday. During the meeting, Rice briefed Zhang on the key points of the foreign policy of the Barack Obama administration, the sources said. The two sides also exchanged views on the Sino-U.S. relations, and other international and regional issues of common concern. They agreed to strengthen their consultation on and cooperation in the affairs of the United Nations, the sources said. The new U.S. ambassador made her UN debut on Monday by presenting her credentials to UN Secretary-General Ban Ki-moon.
BEIJING, Jan. 3 (Xinhua) -- Chinese scholars and businessmen have hailed Hu Jintao's latest speech on Taiwan affairs, hoping that the mainland and Taiwan could have more communication and cooperation in 2009. On the new year's eve, General Secretary of the Communist Party of China Central Committee Hu Jintao made a speech at a ceremony to commemorate the 30th anniversary of the mainland's "Message to Compatriots in Taiwan", in which he made six proposals to promote the peaceful development of the cross-Straits relationship. Chinese President Hu Jintao addresses a ceremony commemorating the 30th anniversary of the announcement of Message to Compatriots in Taiwan, held in Beijing, capital of China, on Dec. 31, 2008. The Chinese mainland commemorated the 30th anniversary of the announcement of Message to Compatriots in Taiwan here Wednesday with a ceremony. Zhou Zhihuai, executive vice president of National Society on Taiwan Studies, said that Hu's speech has combined the "one country, two systems" policy and the practice in the development of cross-strait relations. "His remarks have made the path of peaceful reunification clearer and will be of historical significance in the progress of the cross-strait relations," he said. Hu Youqing, vice president of All-China Federation of Taiwan Compatriots, said the Hu's speech will certainly receive positive responses from Taiwan. "Hu's speech has answered some specific issues which people in Taiwan are mostly concerned about and proposed methods to promote the cross-strait relations with very a sincere attitude," Hu Youqing said. Wu Nengyuan, director of institute of Taiwan studies with Fujian Academy of Social Science, expressed faith that people living on both the mainland and Taiwan would cherish the opportunities in year of 2009 and build on the significant progress in cross-strait exchanges made in 2008. A famous artist Wang Chengxi suggested that the mainland and Taiwan should strengthen their ties by increasing communication inc ultural sectors since the common cultural background shared by both sides could more easily arouse spiritual attachment and sympathetic response. Wang Wei, director of archeological institute with the Chinese Academy of Social Science, said that Hu's speech would promote academic and cultural exchange between the mainland and Taiwan. "All compatriots should join hands to continue the Chinese civilizations that has lasted for more than 5,000 years." Kong Fanbing, a senior technical officer with the mainland-based Datang Telecom Technology Co. Ltd., said that Hu's speech will also benefit economic cooperation between the two sides. "It is predictable that mainland telecom cooperation with Taiwan is very likely to be included in cross-strait economic cooperation mechanism in the future," Kong said. "As a telecom professional, I look forward to the establishment of a mechanism to share technological resources between the mainland and Taiwan," he said.
BEIJING, Nov. 1 (Xinhua) -- In the space of a year, Yang Chanjuan's career plan has changed direction. A soon-to-graduate college student in economics, Yang is feeling her fortunes being buffeted by the financial crisis. Yang was recently told by her schoolmates already working in the financial sector that their companies would cut staff, or there would no bonus this year. Amid the turmoil and full of uncertainty, a job in banking or securities company was no longer desirable to her. As a result, she decided to apply for a government job. Yang's change in career plan came as the financial crisis is spreading around the world. As it is now beginning to hit the real economy, more and more people, not only those in banks, have lost their jobs. International Labor Organization (ILO) estimated earlier that the financial crisis would cost 20 million jobs globally by the end of 2009. The ILO said the new projections could prove to be underestimates if the effects of the current economic turmoil are not quickly confronted and plans laid for the looming recession. Migrant workers fill in application forms at a job fair in Chongqing, southwest China on Jan. 1, 2008. International Labor Organization (ILO) estimated earlier that the financial crisis would cost 20 million jobs globally by the end of 2009. In the birthplace of the crisis, the United States, big companies from Goldman Sachs to Coca Cola, Motorola to Alcoa, have all announced their job cut plans. Economists believed the jobless total could increase by 200,000. Back to China, unemployment now becomes a concern too. Although with 2-trillion U.S. dollars of foreign reserves, a budget surplus and a controlled capital market, China would suffer limited direct impact from the crisis. However, weakening demand from its major markets, North America and Europe, is now leading China's real economy in the export sectors into a tough situation. In China's coastal areas, export enterprises are now struggling with soaring labor cost and fewer orders from foreign customers. Many toy factories in South China's Guangdong Province were shut from January to July this year. Earlier last month, two big factories of a Hong Kong listed toy-maker were shut. As a result, 7,000 workers lost their jobs. Affected by the global financial crisis, the company was suspended from trading thus it faced severe shortage of current funds. Statistics from the Ministry of Commerce showed that China's export suffered a growth slowdown in the first three quarters compared with the same period last year -- from 27.1 percent to 22.3 percent. The government said the gross domestic product (GDP)growth rate in the first three quarters this year slowed to 9.9 percent - a 2.3 percentage points fall compared with the same period last year. "The greatest impact is on these labor-intensive, small and medium-sized export enterprises," said Wang Dewen, a labor economist from China Academy of Social Sciences. These export-oriented enterprises that make China the world's workshop, are mainly small and medium-sized and vulnerable to market changes. These are China's major employers, absorbing 70 percent of the aggregate 20-million new jobs every year. Wang said that the lower-end labor market, especially the migrant workers who are the biggest source of employees in the export enterprises, would suffer from unemployment. As the crisis is now just beginning to hit the real economy, the whole situation could be worse if there is no countermeasure. The fear of unemployment is also hovering over other places. College students and white-collar workers are now worried about their future in the open market.