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GUIYANG, Dec. 5 (Xinhua) -- At least six people were killed and 34 others injured in an explosion that ripped through an Internet cafe in southwest China's Guizhou Province Saturday night, according to local police.The explosion occurred at around 10:30 p.m. in an Internet cafe in the downtown area of the Kaili City of Miao-Dong Autonomous Prefecture of Qiandongnan, said Guizhou's provincial public security department.Victims have been pulled out of the debris and the injured rushed to hospitals, said the department.Rescue workers at the scene said the powerful blast had turned the cafe into "complete ruins" and also destroyed windows of nearby residential buildings.The police are investigating the cause of the explosion and search and rescue work is still underway.
BEIJING, Nov. 27 (Xinhua) -- Two years of monetary easing policies helped China's economy emerge from the global financial crisis. Now, facing a runaway inflow of hot money, fast loan growth, and escalating inflation, China could become serious about tightening regulations to achieve a "soft landing".Analysts recently said China could see more interest rate hikes in the final month of 2010 in a bid to soak up excessive liquidity and prevent a potential overheating of the economy.Further, the People's Bank of China (PBOC) Deputy Governor Hu Xiaolian said on Oct. 24 that using multiple monetary policy tools to improve liquidity management and guide the money and credit growth back to normal would be the main task for the central bank in the remainder of this year.According to data released by the central bank Friday, in October those funds outstanding for foreign exchange (FOFE) hit 525.1 billion yuan (78.37 billion U.S. dollars), the second highest monthly record in history.That is to say, PBOC issued 519 billion yuan of Renminbi in October to purchase the same amount of fresh inflow of foreign exchanges, which usually enter the nation in the form of trade surplus, foreign direct investment and short-term international speculative funds."The huge inflow of hot money is an important reason behind the sharp rise in FOFE," said Zhang Ming, a researcher with the China Academy of Social Sciences (CASS).He noted, as the European debt crisis ceased, that speculative funds have returned to the emerging markets, notably after the U.S. Federal Reserve announced the second round of its quantitative easing policy."As the massive inflow of foreign exchange increases the domestic monetary base, it has become a major impetus of a broad money supply, which could exacerbate inflation," said Liu Yuhui, also a researcher with CASS.Hefty foreign exchange inflow usually goes together with soaring inflation. China's FOFE hit a record 525.1 billion yuan in April 2008. In the same month, China's Consumer Price Index (CPI), a main gauge of inflation, was up by 8.5 percent, which was unprecedented.Also, this October, the CPI rose by 4.4 percent, the highest amount in 25 months.Boosted by a massive trade surplus, the domestic monetary situation began easing in late 2008, as China's broad money supply exceeded 70 trillion yuan, surpassing the United States to become the world's largest.Li Daokui, a member of the monetary policy committee with the PBOC, said hefty money supplies posed huge risks to the nation' s banking system and, more imminently, would exacerbate the current inflation."The interest rate increase last month sent a signal that more such increases will come in the future," he said.
PRETORIA, South Africa, Nov. 18 (Xinhua) -- Visiting Chinese Vice President Xi Jinping on Thursday called here for concerted efforts to make the Forum on China-Africa Cooperation (FOCAC) stronger and to boost the development of the new type of China- Africa strategic partnership.Addressing a seminar marking the 10th anniversary of the establishment of FOCAC, Xi proposed to strengthen strategic planning, practical cooperation and institution building of FOCAC so as to make it a solid base for political mutual trust, a major engine driving common development and an efficient and mature platform for China-Africa cooperation.Meanwhile, more cultural and people-to-people exchanges should be conducted to make FOCAC an emotional bond to deepen China- Africa traditional friendship, said Xi.Xi stressed that China and African countries have to continue to respect, trust and support each other and treat each other as equals. The two sides should stand at a strategic high as they draw plans for the development of China-Africa relations, and should have closer dialogue and consultation within the FOCAC framework, enhance coordination and cooperation on global issues of mutual interest, strive to increase the say and representation of developing countries in the international system, and ensure better development of both China and Africa as the international configuration further evolves.Referring to China-Africa cooperation, Xi said it should be expanded to new areas and brought to higher levels. "We will enlarge the scale of China-Africa trade, and optimize the trade structure. We will cooperate with Africa in infrastructure construction and actively explore cooperation on transnational projects. We will promote export of African goods to China, facilitate investment and technology transfer to Africa, provide more job opportunities for the African people and enhance African countries' capacity in self development so as to bring more benefits to the African people. China will continue to do its best to increase assistance to Africa, optimize the structure of assistance, and focus the assistance projects on education, agriculture, health, poverty reduction and other projects concerning people's lives as well as energy conservation and environmental protection," he said.As new problems and new challenges appearing in the second decade of the 21st century, Xi said China and African countries need to properly handle them and to explore new ways and new thinking for FOCAC development in light of the new conditions and new trends in the world economy and in China-Africa relations."We should be innovative in seeking new development concept and new cooperation model of FOCAC, and give full play to the initiative and creativity of African members of FOCAC. We should strengthen cooperation with the African Union and sub-regional organizations in Africa and actively explore cooperation with other parties in the international community so as to strengthen FOCAC's synergy and influence," said Xi.He also called for expanded contacts and cooperation between the governments in such fields as education, science and technology, culture and tourism, and closer ties between political parties, localities, nongovernmental organizations, academic institutions and the news media.Launched in 2000, FOCAC is a platform for collective consultation and dialogue between China and the states in Africa.
BEIJING, Nov. 19 (Xinhua) -- China's central bank Friday ordered banks to set aside an additional 0.5 percent of their deposits from Nov. 29, the fifth such hike this year and the second increase this month.The People's Bank of China said the move was aimed at "enhancing liquidity management and moderately regulating credit supply." The increase was estimated to freeze liquidity of about 300 billion yuan (44.8 billion U.S. dollars).The reserve requirement ratio (RRR) for the four big state-owned banks -- the Industrial and Commercial Bank of China, China Construction Bank, Bank of China and Agricultural Bank of China -- will stand at 18.5 percent once the rise takes effect.Friday's move will raise the deposit reserve ratio for other large financial institutions to 18 percent and for small and medium-sized institutions to 16 percent.Analysts said the increase exceeded forecasts as it targeted over-liquidity in the banking system and looming hot money inflows caused by the United States' quantitative easing policy."The PBOC is under pressure, and it needs to do something to show its determination to tame inflation. However, it has no intention to kill growth by aggressively hiking interest rates or imposing a lending squeeze," said Lu Ting, China economist at the Bank of America-Merrill Lynch."Hiking the RRR is the natural choice of the PBOC," Lu said in an e-mailed note to clients.China's economic growth rate was likely to slow in the fourth quarter to 8.7 percent, mainly as a result of economic restructuring, the State Information Center (SIC) said Friday.The forecast was almost 1 percentage point lower than the third quarter's 9.6-percent growth rate, but the SIC expected the economy to grow by 10 percent for the full year on the back of a 10.6-percent growth rate for the first three quarters.The central bank, on Nov. 10, announced a 50-basis-point rise of the RRR for Chinese financial institutions that accept deposits from Nov. 16, as China's consumer price index (CPI), a main gauge of inflation, soared to a 25-month high of 4.4 percent year on year in October.Prices of meat have risen for the week ending Nov. 14, with prices of pork up 1.6 percent and mutton 0.5 percent. Prices of eggs also rose 0.9 percent, while rice rose 0.6 percent and flour 0.4 percent, according to a weekly report by the Ministry of Commerce.The report said prices of 18 types of vegetables were slightly lower, down by 0.8 percent compared to the previous week. However, on a year-on-year basis, the prices of 18 staple vegetables in the first 10 days this month were still significantly higher from a year earlier.The State Council, the Cabinet, Wednesday announced price control guidelines to reassure consumers facing rising inflation and urged local authorities to offer temporary subsidies to needy families.The market had been expecting an increase, but did not anticipate it would come so soon, said Tan Yaling, senior analyst at Bank of China.She said the central bank would not raise the benchmark interest rates soon after the ratio hike as higher interest rates would further expand the interest rate differences between China and other major economies, which would lead to the influx of hot money.The central bank's decision to raise the RRR, instead of interest rates, was because a higher RRR would have "a direct effect on withdrawing liquidity," said Yan Wei, chief economist with the Orient Securities.The decision was announced after Chinese stock markets edged up following a period of decline of up to 10 percent of their value, largely on concerns of tighter policies.The benchmark Shanghai Composite Index rose 0.81 percent to close at 2,888.57. The Shenzhen Component Index closed up 1.23 percent to end at 12,295.85.
BEIJING, Dec. 12 (Xinhua) -- China said it will make greater efforts to start six-party emergency consultations because tensions on the Korean Peninsula have not eased."The six-party talks are a very important way to advance the denuclearization process on the Korean Peninsula and maintain peace and stability in northeast Asia. We, the concerned parties, should make full use of the talks," Chinese Foreign Minister Yang Jiechi said in an interview in Beijing Friday.Launched in 2003 and stalled since the end of 2008, the six-party talks involve China, Russia, the United States, Japan, the Democratic People's Republic of Korea (DPRK) and the Republic of Korea (ROK)."While the talks have yet to be resumed, we think it is the proper time for emergency consultations between the heads of the delegations of the six parties," said the foreign minister.Tensions remain high on the Korean Peninsula after the DPRK and the ROK exchanged artillery fire on Nov. 23. China proposed emergency consultations among the chief negotiators in December.Amid the international community's repeated calls for restraint and calm, the United States held separate large-scale naval drills with the ROK and Japan in waters near the peninsula."We will continue to make patient efforts to persuade the parties to engage in consultations," Yang said.He said the tensions on the peninsular will ease "only if all the parties show their sincerity and make joint efforts.""Stability on the Korean Peninsula is good for all. Chaos there is detrimental for all," he added.During the interview, the foreign minister reiterated China's policy to be a good neighbor and partner in Asia while continuing to make contributions to the rise of the region.Yang said China suggests a new security concept that features "mutual trust, mutual benefit, equality and coordination," be fostered, adding that countries in the region should step up cooperation in anti-terrorism and non-proliferation work."China welcomes other relevant countries playing a constructive role in regional cooperation to help shape an open, inclusive, and win-win cooperative framework in the region," he added.