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BEIJING -- China will gradually scrap restrictions on the destination, stock ownership and business scope of foreign investment in the service sector, a senior economic planner said in Beijing on Saturday.Zhang Mao, vice minister of the National Development and Reform Commission (NDRC), said the country would stick to its opening-up policy and promote a "quantity-to-quality transformation in attracting foreign investment".He added existing restrictions on foreign investment in key industries concerning China's national security and its citizens livelihood remained unchanged."The point (of the transformation) is to absorb advanced technologies and management skills from foreign countries," he said. "Foreign investment companies are expected play a positive role in this regard."Speaking at a multinational CEO roundtable on Saturday, he said foreign investment would be encouraged to enter high-tech, equipment and new material manufacturing and logistics businesses. He added the central and western hinterlands were open for foreign investment with more incentives.But Zhang stressed that foreign investors were restricted from setting up businesses for export only in China and banned from creating polluting projects and those that rely on consuming too much energy and resources.Chinese authorities would also help to create a sound investment environment by simplifying examination and approval procedures and steadily accelerating the free exchange of the country's currency under the capital account.The government would establish a cross-department supervision mechanism over foreign mergers and acquisitions in effort to safeguard national economic security, he said.Assistant Minister of Commerce Chong Quan said multinationals were encouraged to strengthen cooperation with their Chinese partners in promoting regional development, technological innovation, outsourcing services, product safety and exercising corporate social responsibility.Chong said his ministry had named 10 cities where "conditions are mature", the "base cities" of outsourcing services. They are Beijing, Dalian, Xi'an, Shenzhen, Chengdu, Wuhan, Nanjing, Shanghai, Tianjin and Jinan.By 2010, China's export volume of outsourcing services was expected to double that in 2005, he added. New foreign investment guideOn November 7, China released a new guide of industries open to foreign investment and foreign companies. It also listed those that were banned or restricted from entering the Chinese market.Foreign investors are invited to join efforts to promote the recycling economy, clean production, renewable energy utilization and ecological environment protection but prohibited from exploiting "important and non-renewable" mineral resources.The new guide replaced the 2004 version and takes effect on December 1.Since 1997, China has revised the industry guide for foreign investors on three occasions in hope of channeling foreign investment to serve the needs of industrial restructuring.The current policies to attract foreign investment were made 28 years ago when China was desperate for investment and foreign currency.However, the country has been the largest recipient of foreign investment among all developing nations for 15 consecutive years. A 2004 report to the UN Conference on Trade and Development noted the country attracted a per capita foreign investment of , much lower than the 4 per person that was invested in developed countries and below the world average of 7.Product safetyIn his speech at the roundtable, the assistant minister stressed that China has taken a highly responsible attitude towards product safety, urging multinationals to join the nation's efforts to guarantee product safety."Made in China" is a fruit of international endeavor because more than 50 percent of China's exports come from the processing trade sector, said Chong, "the exported products were manufactured in line with foreign standards and foreign customers' requirements," he said.Meanwhile, products made by foreign invested companies in China comprised a majority of the nation's exports, accounting for 58 percent of the total export volume, said Chong."China should not be the only one to blame for defective products," said the assistant minister, "product safety is a serious matter for the world as a whole and multinationals bear key responsibilities in coping with the challenge,"He said multinationals should keep a close watch on design, inspection and sales of their products and make sure their raw materials are up to safety standards.In the wake of headline food scandals, China's cabinet approved in principle a draft law on food safety to address the "weak points" in food production, processing, delivery, storage and sales at the end of October.The draft law proposed a food safety risk supervision and evaluation mechanism to provide a "key basis" for constituting food safety standards and food born disease control measures. The mechanism demanded a "unified, timely, objective and accurate" disclosure of emergency information.
Reduced bank deposits by Chinese households suggest that a large amount of money is being invested in the capital market, according to the central bank. Household deposits decreased by 167.4 billion yuan (.7 billion) in April. In contrast, they increased by 60.6 billion yuan (.9 billion) at the same time last year, the People's Bank of China said on its website yesterday. The high growth rate of M1 a narrow measure of money supply that includes cash and demand deposits plus diminishing household deposits suggests Chinese households are keeping money on tap for investment in the capital market. The red-hot stock market has grown by more than 50 percent this year after doubling last year. Stock mania is sweeping the country despite warnings of a speculative bubble but small investors are rushing to pull out money from bank savings accounts and deposits to pump them into the share market. Some are even mortgaging their houses or dipping into retirement savings to feed the frenzy. Economists say the government should take steps to moderate the price surge or risk a sharp fall that could hurt millions of small investors. "This is a very critical time. If policy adjustments take place now, the market can still have sustainable development," Hong Liang, a Goldman Sachs economist, told Associated Press. "The longer they wait, the harder the eventual landing will be." Enthusiasm for stocks is fueled in part by a lack of other attractive investments and low interest rates. Some have made fortunes in the booming real estate market, but the government is cracking down on speculation to rein in soaring housing costs. On Friday, the government announced it will raise the amount that Chinese banks are allowed to invest in stocks abroad, possibly diverting some of the money pouring into domestic markets. But economists said the amounts involved will be too small to affect the country's money flows. Regulators have also discussed raising interest rates on bank savings to make them more attractive and creating other new investment options but have announced no timetable. There has also been some talk of imposing a capital gains tax to cool off speculation. The securities watchdog on Friday urged stock exchanges, securities dealers and other authorities to educate investors about the risks of stock market trading. The institutions must make investors understand that stock markets are risky and they should be cautious in entering, especially those who use all their savings or pawn their apartments for loans to invest in stocks, the notice by the China Securities Regulatory Commission (CSRC) said. Saying that the number of "irregularities" in the stock market was rising, the CSRC also told listed companies, securities dealers and other related institutions to release accurate, authentic, complete and timely information.

The State Administration of Radio, Film and Television has called a halt to all TV and radio programs on plastic surgery or sex-change operations.The administration issued a notice on Thursday that forbids programs with such "indecent themes and bloody and explicit scenes".As the decision states, it is forbidden to plan, program or broadcast any programs about plastic surgery or sex-change operations.The decision came as growing numbers of local TV stations decide to broadcast such programs, which have attracted complaints from many viewers.For example, Sun Min, a viewer in South China's Guangdong Province, said she found the scenes of plastic surgery in "New Agreement on Beauty", broadcast by a local TV station, to be "horrifying and sickening"."Ongoing programs of this kind should be stopped immediately," said the notice. "Any party that violates the rule will be punished."The administration has already stopped broadcasts of "New Agreement on Beauty".In response, He Yi, an official with the Guangdong TV Station, said that the program's production team understands the administration's decision and would abide by it.The administration's move came a week after it banned "The First Heartthrob", a local talent show broadcast in Southwest China's Chongqing Municipality, due to its vulgar content.The program caters to "low-grade interests", with the judges and songs on the program often featuring bad language.The administration said this seriously damages the image of the television industry and has a negative social influence.The director of the program has already been fired by Chongqing TV station.
At the end of a dusty narrow path cutting through a stretch of cornfields on the outskirts of Qingyang, an obscure town in Henan Province, looms a 3-hectare ground dotted with green tents, armored cars and bulldozers. Over the past three months, 315 Chinese engineering troops have gone through the rigors of tough day-night training here. And in a month from now, they will travel more than 8,000 km to Darfur in Sudan to be part of a special UN peacekeeping mission.Commander of UN Mission in Sudan Lieutenant General Jasbir Singh Lidder (L) hands over Unit Citations to Chinese peacekeepers for their excellent performance at the base of the Chinese peacekeeping troops on September 12, 2007. [Xinhua]The first international group of peacekeepers to be deployed in Darfur will build barracks, roads and bridges, and dig wells, which form the key to the accession of more UN peacekeepers to the region. The drills the engineering troops, with the UN's blue berets, perform in front a group of reporters from home and abroad show what they are capable of. In about 10 minutes, bulldozers and road-rollers smoothen a potholed path and soldiers use bare hands to move a 40-meter stretch of steel bridge into place over a ditch. In less than that time, another squad builds a cabin with prefabricated aluminum walls and a "UN" symbol on its side. On show, too, are impressive wrestling and battlefield aid performances."The engineering unit is manned by sturdy, versatile soldiers, mainly from the Jinan Military Area," says Lieutenant Colonel Dai Shaoan, deputy director of the Ministry of National Defense's peacekeeping affairs office. "They have wide experience in building roads and bridges and are fully competent for the mission."The Chinese troops are part of the "Annan Plan", a three-phased approach proposed by former UN secretary-general Kofi Annan to end the Darfur crisis. The plan calls for deploying a joint UN-African Union (AU) peacekeeping force in the 500,000-square-km arid Darfur region, plagued by conflicts over limited resources. Their deployment has been made possible after a hard-won diplomatic tug-of-war.Dai says the UN invited China in April to dispatch a multi-functional engineering unit to Dafur. Four months later, the world body requested that the unit be dispatched in early October."We are doing the preparatory jobs in line with the prescribed timetable to guarantee smooth implementation of the peacekeeping operation," says engineering unit head Shangguan Linhong.The force comprises three engineering platoons, a platoon each of well-diggers and 40 guards, a small hospital unit, 145 vehicles including excavators, bulldozers, road-rollers, power generators and armored personnel carriers, Shangguan says. All the vehicles are "brand new" from domestic companies and have undergone strict tests in line with UN standards.Since its formation in mid-June, the engineering unit has attended intensive courses, from emergency aid to simulating heat in Darfur and from studying UN regulations to getting to know Sudanese culture. "Everyone in our unit can communicate in English to a certain extent," Shangguan says.The UN raised the alarm on Darfur in 2003, and began looking for a lasting resolution to the ethnic conflict. The Darfur Peace Agreement (DPA) was signed in May 2006, thanks to intensive diplomatic and political efforts of the UN, AU and other partners. It took more than one year after that to persuade the Sudanese authorities to accept the UN-AU "hybrid" peacekeeping force.President Hu Jintao met with his Sudanese counterpart Omar al-Bashir in Beijing last November and in Khartoum in February, and asked him to be flexible in his stance over Darfur and ensure that humanitarian aid was distributed properly among the refugees. In March, when Sudan and the UN differed over the implementation of the Annan Plan, China sent a special envoy several times to Khartoum to persuade the government to accept the UN resolution."I think the Sudanese government heeded China's advice," China's special representative for Darfur Liu Guijin said at a press conference in early July. Sudan agreed in June to have the "hybrid" force in Darfur after intense diplomatic efforts of the UN and the international community. Besides, China offered million in humanitarian aid to Sudan, with the last installment leaving Tianjin last month.The latest situation in Darfur is a mixture of good and bad. The UN says the mortality rate in the region is now below the emergency level because of the massive humanitarian efforts of the last four years. Also, malnutrition has been halved from mid-2004, when the crisis reached its peak.But in June, the UN Environment Programme reported an "unprecedented" long-term climate change in northern Darfur, saying its impacts are closely linked to the conflict.This is a real challenge for the Chinese engineering troops, but they are not unnecessarily perturbed. In fact, they are ready to overcome all obstacles on the road to peace."The challenges ahead of our peacekeeping troops are obvious," says Dai. Poor living conditions, lack of proper infrastructure and complex security situations are the obvious challenges. "But our army has a glorious tradition of being hard-working, particularly combat-worthy and of playing a contributory role."Major Ma, an officer with the engineering troops, says Chinese soldiers see the UN peacekeeping operation as a glorious opportunity. "Implementing a mission so far from the country and being part of the efforts to maintain peace in the world is a unique experience."All the soldiers in the battalion which Ma used to serve in the Jinan Military Area had applied to be part of the engineering unit for Darfur, and they included 18-year-old recruits, he says, and they had the full support of their families.But is Ma worried about the dangers in Darfur? The major says: "What we think of most is how to do a nice job. Danger and difficulties are normal for servicemen."China's peacekeepers till nowSince dispatching five military observers to the UN Truce Supervision Organization (UNTSO) in 1990, China's People's Liberation Army (PLA) has sent 8,095 military personnel to 17 UN peacekeeping missions. Altogether, 1,648 Chinese officers and soldiers are serving in 10 UN missions and the UN Department of Peacekeeping Operations today.Lieutenant Colonel Dai Shaoan, deputy director of the Ministry of National Defense's peacekeeping affairs office, says China will participate only in those peacekeeping missions that are in line with the UN Charter, which means those operations overseen by the UN Security Council.China has contributed peacekeepers in the shape of engineers and medical and transport units. It has not sent any combat troops for peacekeeping operations.But Dai says China has a "positive" attitude towards sending combat troops for future UN peacekeeping operations.
Finance Minister Xie Xuren and his Japanese counterpart Fukushiro Nukaga have agreed to work jointly to end the controversy created by allegedly contaminated China-made dumplings.Chinese Finance Minister Xie Xuren (L) shakes hands with Japan's Finance Minister Fukushiro Nukaga at the latter's office in Tokyo, February 10, 2008. [Xinhua]At the first-ever ministerial-level meeting since the food scare in Japan, the two ministers vowed to "keep searching for the real cause" that made 10 people fall ill after eating the dumplings."We must cooperate in the investigation to get to the root of the problem and to prevent such an incident so that it doesn't become an obstacle to our friendship," Nukaga told reporters in Tokyo yesterday. "And he (Xie) said he completely agreed (with the idea)."The two also agreed to hold another dialogue next month in Tokyo. Xie was in Japan to attend expanded discussions and meetings of the Group of Seven financial ministers. Representatives of Russia, South Korea and Indonesia were also invited to the deliberations.The ministerial-level meeting came four days after Lunar New Year's Eve, when Chinese and Japanese officials met in Tokyo and said they were ready to cooperate in the investigation.China is willing to fully cooperate and share information with Japan, Li Chunfeng, head of the five-member Chinese delegation, told reporters after the third round of talks at the Japanese Cabinet Office on February 6.The country had set up a joint investigation team with Japan to get to the truth as soon as possible, Li said, calling for an objective attitude and scientific measures to solve the problem.A joint investigation team that on Tuesday inspected the plant of Tianyang Food, which made the dumplings, did not find any "abnormality" with the production process."The plant (in Shijiazhuang, capital of Hebei) is very clean and well managed, and no abnormality was detected," Japanese delegation chief Harashima Taiji said on Wednesday.Chinese and Japanese journalists, too, visited the plant, where production was suspended on January 30. The plant employs about 800 people.Also on Wednesday, Japanese Health Minister Yoichi Masuzoe said someone could have deliberately tried to contaminate the dumplings."Judging from circumstantial evidence, we'd have to think that it's highly likely to be a crime," Masuzoe said in Tokyo.Chinese police and law enforcers in Japan's Hyogo prefecture, where the 10 people fell ill, have already set up a joint task force to probe the case.In a joint announcement, Hyogo police said that after finding large amounts of the pesticide methamidophos on and small holes in some of the dumpling packages they suspected someone deliberately tried to poison the product.Tianyang reiterated it has never used methamidophos and that the dumplings were always packed immediately after coming off the production line.China Daily - Agencies
来源:资阳报