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BEIJING, Feb. 23 (Xinhua) -- China's central bank on Monday warned of deflation in the near term caused by continuing downward pressure on prices. Commodities prices were low and weak external demand could exacerbate domestic over-capacity, the People's Bank of China (PBOC) said in an assessment of fourth-quarter monetary policy. "Against the backdrop of shrinking general demand, the power to push up prices is weak and that to drive down prices is strong," the PBOC said. "There exists a big risk of deflation." China's consumer price index (CPI), a major gauge of inflation, rose 1 percent in January from a year earlier. In that period, the producer price index (PPI), a measure of inflation at the wholesale level, dropped 3.3 percent. But the PBOC also warned of medium and long-term inflation risks. As the central banks worldwide injected a huge amount of liquidity into the financial system, commodities prices could repeat earlier rallies if market confidence recovered, it said. The PBOC stated that China's economy faced further downside risks because of slackening external demand, over-capacity in some sectors and increases in urban job losses. The gross domestic product expanded at a slower rate of 6.8 percent in the fourth quarter of 2008, as exports slumped and the property sector sagged, dragging down growth for the whole of 2008to a seven-year low of 9 percent But China had huge market potential and as the macro controls started to take effect, its economy was likely to maintain stable and relatively fast growth, it said. To spur growth, the PBOC said it would ensure ample liquidity in the banking system and promote the reasonable and stable growth of credit. It also reaffirmed that China would keep the Renminbi (RMB) exchange rate basically stable, while making it more flexible in a self-initiated, gradual and controllable manner.
ZURICH, SWITZERLAND, Feb. 26 (Xinhua) -- A Chinese business delegation inked trade deals worth more than 300 million U.S. dollars with Swiss companies on Thursday, ending the second leg of their four-state procurement tour in Europe. The agreements covered products ranging from software to electric equipments and metals, which meet China's domestic needs, according to Chinese trade officials. Among those agreements, Switzerland's ABB, a global leader in power and automation technologies, signed a letter of intent for the supply of generator circuit breakers to China Nuclear Power Engineering Company. Switzerland's Glencore, one of the world's largest suppliers of a wide range of commodities and raw materials to industrial consumers, also signed a deal with Chinalco, the world's second largest alumina producer and the third largest primary aluminum producer. Holcim, one of the world's leading suppliers of cement and aggregates based in Switzerland, deepened its partnership with China's Huaxin Cement Company (HCC). They signed a frame agreement for technical service, technology and new equipment supplies covering the next two years. Holcim is already the single largest shareholder in HCC, holding a stake of 39.9 percent of the Chinese firm. "HCC with Holcim's support will continue to strengthen and extend its leading role as a modern cement producer in China," the two companies said in a statement. Chinese Commerce Minister Chen Deming (L) shakes hands with Swiss Economy Minister Doris Leuthard, after signing a memorandum on the intensification of technical cooperation in the field of environmental technology, in Zurich, Switzerland, Feb. 26, 2009. Chen and Leuthard attended here on Thursday the Sino-Swiss Economic and Trade Forum with the aim of intensifying relations between Swiss and Chinese companiesChinese Commerce Minister Chen Deming, who led the delegation, said that besides this team, there will be more Chinese business delegations coming to Switzerland for trade and investment opportunities. Swiss Economy Minister Doris Leuthard revealed that a Swiss business group will also go to China within the year. Both ministers witnessed the deal-signing ceremony and opened an economic and trade forum with the aim of intensifying relations between Swiss and Chinese companies. Addressing the forum, Chen said that cooperation is the effective way to tackle the international financial crisis which posed great challenge to world economy. Chinese Commerce Minister Chen Deming (L) and Swiss Economy Minister Doris Leuthard attend a press conference in Zurich, Switzerland, Feb. 26, 2009. Chen and Leuthard attended here on Thursday the Sino-Swiss Economic and Trade Forum with the aim of intensifying relations between Swiss and Chinese companies"Past experience shows that in time of crisis it is all the more important to adhere to a policy of openness and cooperation," he said. "Protectionism will not revive the economy. Rather, it will exacerbate the recession." "This trade and investment promotion delegation to Europe is a clear indication of China's opposition to protectionism and its readiness to work together with Europe in tiding over the crisis," he added. Highlighting China and Switzerland are important economic and trade partners to each other, Chen said the two economies are highly complementary. China is highly competitive in labor-intensive products, such as garments, jewelry, footwear and containers, offering budget choice to Swiss consumers, while Switzerland boasts a distinct competitive edge in watches, medicines, measuring instruments and precision machinery. In 2008, bilateral trade between China and Switzerland reached 11.25 billion U.S. dollars, increasing 19.2 percent despite the economic downturn. China is now Switzerland's second largest trading partner in Asia. Leuthard said that the visit by the Chinese delegation sent a strong signal that China and Switzerland remain committed to open markets and against protectionism. She said the agreements between Swiss and Chinese companies are "good news to our businesses." "They signed contracts which will safeguard jobs and strengthen the cooperation between Swiss and Chinese companies in different fields in our economy," she said. Earlier today, Leuthard and Chen signed a memorandum on the intensification of technical cooperation in the field of environmental technology. "Switzerland and China will cooperate more strongly to ensure that economic growth can be shaped in a more sustainable and environmentally-sound manner," the Swiss government said. To this end, a joint working group is to be established to examine the potential for cooperation in the areas of technology transfer, energy efficiency, renewable energies and the efficient use of resources. The group will submit proposals on the shape of this cooperation. Switzerland is the second stop of the Chinese business delegation's European tour. On Wednesday, they signed 37 procurement deals worth about 11 billion euros (14 billion U.S. dollars) with local firms in Germany. In an interview with Xinhua on Wednesday, Chen expected purchase deals with Switzerland would be modest compared with Germany due to the gap in the two countries' economic scales. The delegation will arrive in Madrid, Spain later today and then London, the last stop. Chen said the deals to be signed there could be a more than in Switzerland.
BEIJING, April 15 (Xinhua) -- China, the world's biggest manufacturer of electronics and information technology (IT) products, said Wednesday it will boost the industry's development to create more than 1.5 million new jobs in three years. The electronics and IT sector is expected to contribute at least 0.7 percentage points to China's annual gross domestic product (GDP) growth from 2009 to 2011, compared with 0.8 percentage points last year, according to a document approved by the State Council and published on the government Web site. That will provide new jobs for nearly 1 million college graduates, which are included in the total 1.5 million targeted vacancies, said the document. China's electronics and IT products sales surged at an average annual rate of 28 percent from 2001 to 2007, but slowed sharply to 12.5 percent last year amid the economic downturn. Sales in 2008 totaled 6.3 trillion yuan (920 billion U.S. dollars), with exports reaching 521.8 billion U.S. dollars, or 36.5 percent of the country's total export value. The government announced a support plan for the industry in February. The Wednesday document made clear details of the plan. The government will boost the industry by increasing state investment, credit support and export tax rebates, said the document. It also pledged to expand the domestic market for the industry and encourage innovation and restructuring. In the next three years, the country aims to achieve technological breakthroughs in strategic domains of the industry such as integrate circuits, new-type displays and software, according to the document. For instance, revenues from software and information service sectors will take up 15 percent of the industry's total, up from the current 12 percent. In addition, fresh growth will be cultivated in such fields as digital TVs and the new generation of mobile communications and Internet. The government said it will vigorously promote the overseas commercial use of its domestically-developed TD-SCDMA standard for the high-speed third-generation mobile communications.
BEIJING, Feb. 28 (Xinhua) -- China's top legislature approved the Food Safety Law on Saturday, providing a legal basis for the government to strengthen food safety control "from the production line to the dining table." The law, which goes into effect on June 1, 2009, will enhance monitoring and supervision, toughen safety standards, recall substandard products and severely punish offenders. The National People's Congress (NPC) Standing Committee gave the green light to the intensively-debated draft law at the last day of a four-day legislative session, following a spate of food scandals which triggered vehement calls for overhauling China's current monitoring system. Wu Bangguo (C), chairman of the Standing Committee of the National People's Congress (NPC), presides over the concluding meeting of the 7th meeting of the 11th NPC Standing Committee in Beijing, on Feb. 28, 2009. The NPC Standing Committee, China's top legislature, concluded its four-day session on Saturday, after approving the food safety law, an amendment to the criminal law and the revised insurance law. Winning 158 out of 165 votes, the law said the State Council, or Cabinet, would set up a state-level food safety commission to oversee the entire food monitoring system, whose lack of efficiency has long been blamed for repeated scandals. The departments of health, agriculture, quality supervision, industry and commerce administration will shoulder different responsibilities. These would include risk evaluation, the making and implementation of safety standards, and the monitoring of about 500,000 food companies across China, as well as circulation sector. The law draft had been revised several times since it was submitted to the NPC Standing Committee for the first reading in December 2007. It had been expected to be voted by lawmakers last October, but the voting was postponed for further revision following the tainted dairy products scandal last September, in which at least six babies died and 290,000 others were poisoned. "It actually took us five years to draft this law since the State Council first made legislative recommendations in July 2004.It has undergone intensive consideration, because it is so vital to every person," Xin Chunying, deputy director of the NPC Standing Committee's Legislative Affairs Commission, said at a press briefing after the law was adopted. She said although China had certain food quality control systems in place for many years, lots of loopholes emerged in past years, mainly due to varied standards, lack of sense of social responsibility among some business people, too lenient punishment on violators and weakness in testing and monitoring work. China has a food hygiene law, which took effect in 1995, to regulate issues of food safety, but many lawmakers said it was too outdated to meet the need of practice. For example, the law is far from being adequate in addressing the problem of pesticide residue in foodstuff. According to the new law, China will set up compulsory standards on food safety, covering a wide range from the use of additives to safety and nutrition labels. The law stipulates a ban on all chemicals and materials other than authorized additives in food production, saying that "only those items proved to be safe and necessary in food production are allowed to be listed as food additives." Health authorities are responsible for assessing and approving food additives and regulating their usage. Food producers must only use food additives and their usage previously approved by authorities, on penalty of closure or revocation of production licenses in serious cases, according to the law. In the tainted dairy products scandal, melamine, often used in the manufacture of plastics, was added to substandard or diluted milk to make protein levels appear higher than they actually were. "Melamine had never been allowed to be used as food additive in China. Now the law makes an even clearer and stricter ban on it," Xin said. She said the compulsory system to recall substandard food, as written in the law, would also be effective in curbing food-related health risks. Producers of edible farm products are required to abide by food safety standards when using pesticide, fertilizer, growth regulators, veterinary drugs, feedstuff and feed additives. They must also keep farming or breeding records. Offenders can face maximum fines which would be 10 times the value of sold products, compared with five times at present. If businesses are found producing or selling a substandard foodstuff, consumers can ask for financial compensation which is 10 times the price of the product. That's in addition to compensation for the harm the product causes to the consumer. For those whose food production licenses are revoked due to illegal conducts, they will be banned from doing food business in the following five years. "This is a big step to increase penalties on law violators," Xin said. Another highlight of the law is that celebrities can share responsibility for advertising for food products that are found to be unsafe. The law says all organizations and individuals who recommend substandard food products in ads will face joint liability for damages incurred. This has been a hot topic in China where film stars, singers and celebrities are often paid to appear in ads of food products. "The provisions were added out of concern over fake advertisements, which contained misleading information. Many of the advertisements featured celebrities," said Liu Xirong, vice chairman of the NPC Law Committee. Several Chinese celebrities had advertised for products of the Sanlu Group, a company at the epicenter of the tainted dairy product scandal. They were vehemently criticized after thousands of babies were poisoned by the Sanlu formula. Many people posted online demands for them to apologize to and compensate families of the sickened babies. But others argued that it was unfair to blame the celebrities as Sanlu had legal documents to prove its products safe. On tonic food, a booming industry with an estimated annual output value of 100 billion yuan (14.62 billion U.S. dollars) in China, the law prohibits any claims related to prevention or cure of illness on the product's label and instruction leaflets.
SANMEN, Zhejiang, April 19 (Xinhua) -- China on Sunday started the construction of its first third-generation pressurized water reactors using AP 1000 technologies developed by U.S.-based Westinghouse. The reactors, located in Sanmen of east China's Zhejiang Province, will also be the first in the world using such technologies. The Sanmen Nuclear Power Plant will be built in three phases, with an investment of more than 40 billion yuan (5.88 billion U.S. dollars) injected in the first phase. The first phase project will include two units each with a generating capacity of 1.25 million kw. Photo taken on April 18, 2009 shows the foundational construction site of the No.1 unit of the first phase of the Sanmen nuclear plant in Zhejiang Province. The Sanmen nuclear plant, with the world's first nuclear plant using the AP1000 technologies, a type of third generation nuclear power reactor introduced by America's Westinghouse company, started the construction recently The first generating unit will be put into operation in 2013, and the second, in 2014. The plant will eventually have six such units. "It is the biggest energy cooperation project between China andthe United States," said Zhang Guobao, vice minister in charge of the National Development and Reform Commission and also head of the National Energy Administration. "It will contribute to the human kind's peaceful use of nuclear power," he said. China launched bidding in 2003 for its nuclear power stations of the third generation. Foreign companies including Westinghouse, France's Areva and Russia's AtomStroy Export are major bidders. Photo taken on April 18, 2009 shows the foundational construction site of the No.1 unit of the first phase of the Sanmen nuclear plant in Zhejiang Province. The Sanmen nuclear plant, with the world's first nuclear plant using the AP1000 technologies, a type of third generation nuclear power reactor introduced by America's Westinghouse company, started the construction recentlyWestinghouse became the winner after China signed a memo with the United States on the introduction and transfer of third-generation nuclear power technologies in December 2006. The final agreement was inked between China's State Nuclear Power Technology Corporation and Westinghouse in July 2007, according to which China will buy four third-generation pressurized water reactors from Westinghouse. The agreement also involves technology transfer to China. Two of the four pressurized water reactors will be installed in Sanmen of Zhejiang Province and two in Haiyang City, eastern Shandong Province. William Poirier, vice president of Nuclear Power Plants China of Westinghouse Electric Company, said China has a sound nuclear power security system with a strict supervision work. He said he believed China can replicate the experiences of the third-generation nuclear power technologies and build more such stations. China's mainland has 11 nuclear reactors at six plants, all on the east coast, with a combined installed capacity of 9.07 million kw. To meet its fast economic growth, China plans to develop more nuclear power. The country plans to have 40 million kw of installed nuclear capacity on its mainland by 2020, which would be4 percent of projected electricity supply capacity, or double the current level. Of the 11 reactors, three use domestic technologies, two are equipped with Russian technology and four with French technologies, and two are Canadian designed. All the 11 reactors employ second-generation nuclear power technologies. Speaking at Sunday's inauguration ceremony of the first-phase project of the Sanmen Nuclear Power Plant, Chinese Vice Premier Li Keqiang urged making more efforts to develop new energy to ensure the country's energy security and boost economic growth. He underscored innovation as the key to nuclear power development, calling for enterprises to adopt advanced technology and enhance self-innovation. He said it was inevitable that China would need to improve energy structure and enhance energy conservation and emission cuts when resources and environment issues took their toll on economic development.