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BEIJING, June 28 (Xinhua) -- Chinese President Hu Jintao has called for more confidence in the country's stable economic growth and gaining more strength to better people's livelihood. He made the calls during an inspection tour in northeastern China's Heilongjiang Province from June 26 to 28, one of the country's old industrial bases and important granaries. Hu encouraged people in Heilongjiang to seize the opportunity as China moved to revitalize its old industrial bases, to overcome the difficulties and maintain a steady economic growth and ensure people's livelihood. Chinese President Hu Jintao (C) talks with residents at Dongsheng Village in Wuliming Town of Zhaodong City, northeast China's Heilongjiang Province. President Hu Jintao made an inspection tour in Heilongjiang Province on June 26-28, 2009. During his three-day inspection tour, Hu visited Harbin Measuring and Cutting Tool Group and Harbin Aircraft Industry Group, two of the province's major industrial enterprises, and pointed out that independent innovations are key to high competitiveness and further development. "Crisis creates opportunities, and we shall put more efforts in technological upgrading, and build up technology reserves for the future," he said. Hu also visited rural areas and inspected crop growth. He encouraged farmers to increase grain production and boost agricultural modernization, so as to ensure the country's grain security. More supportive policies for farmers are on the way, he said, hoping that farmers could increase their incomes with improved policies and technologies. Hu also visited an oil field, a military camp, a school for intellectually challenged children, a human resources market, and a residential community which houses people who formerly lived in shanties.
BEIJING, May 6 (Xinhua) -- China's central bank said Wednesday the economy is doing "better than expected" in the first quarter, and pledged to maintain "ample" liquidity in the financial system for economic recovery. China would stick to its moderately easy monetary policy and ensure "ample" liquidity at banks, the People's Bank of China (PBoC) said in its quarterly monetary policy report posted on its website. The country has pumped 4.58 trillion yuan (670 billion U.S. dollars) of new loans into the economy in the first quarter to stimulate growth. The figure is already nearing 5 trillion yuan of new loans targeted for the whole year. In March alone, new loans increased by a record 1.89 trillion yuan. The country's financial institutions and enterprises would digest the huge amount of new loans in the following months, the report said. Industry insiders have said credit extended by China's banks in April may have dropped to above 600 billion yuan after staying at above 1 trillion yuan for three straight months. The central bank said new lending from commercial banks focused on government-backed projects. It encourages more bank loans to be channeled to small and medium-sized enterprises as they play an important role in the national economy and in increasing employment. The central bank said in the first-quarter monetary policy report it would continue to instruct financial institutions to extend new loans, despite the earlier surge. The pick-up in bank lending is conducive to stabilize the financial market and boosting market confidence, PBoC said. Meanwhile, the bank urged lenders to improve credit quality to avoid a possible rebound in bad loans. There have been "positive changes" in the economy in the first quarter, the bank said, echoing remarks made by Premier Wen Jiabao last month. The quarter-on-quarter growth is improving, compared to the fourth quarter of last year, it said, without giving specific figures. China's economy expanded 6.1 percent in the first quarter, the lowest pace in 10 years and down from 9 percent in the fourth quarter last year. The central bank also said foundations for the recovery are not solid, as uncertainties in external economies still exist and private investment is yet to become active with new lending concentrated on government projects. In listing uncertainties ahead, the bank said the country still has to battle against the financial crisis that is unfolding and a collapse in external demand that is hurting exports. The country is also under great pressure to create enough jobs and from a slower growth in residents' income, which would suppress future consumption, it said. The bank also warned overcapacity and insufficient demand may drive prices lower in the country with the world economy in a downturn. But it also said continued falls in prices may become less likely along with the world recovery, a turnaround in the national economy and fast credit growth. "Prices of primary products and assets may rebound quickly once investor confidence is restored, as the global credit is relatively loose thanks to injection of liquidity and stimulus packages across the world," the bank said. The central bank also said it was concerned that the extraordinary monetary policy adopted by other major economies would result in inflation risks. It referred to the quantitative easing policy adopted by the U.S., Japan, Britain and Switzerland to pump cash into their economies. The quantitative easing policy meant increasing currency supply through purchasing mid- and long-term treasury bonds after central banks cut interests rates to near zero. The extraordinary monetary policy harbored huge risks for international financial markets and the global economy, said the central bank. It would increase the risk of global inflation, said the central bank, suggesting it would create new assets bubbles and inflation if central banks of major economies failed to mop up thehuge liquidity when the global economy recovered. "A policy mistake made by some major central banks would put the whole world in risk of inflation," it said. The quantitative easing policy would also make exchange rates of major currencies more volatile, according to the report. The central bank cited the U.S. move to purchase treasury bond in March as an example, saying although the dollar had appreciated against other major currencies, it fell after the purchase. PBoC said the policy would leave the bond markets subject to fluctuations. It said massive purchase of mid- and long-term treasury bonds may keep yield at a low level. But in the long run, as the financial markets returned to stability and the economy recovered, inflation expectations would grow, interest rates would rise, and bond prices would adjust sharply, according to the report.
BEIJING, June 27 (Xinhua) -- China always opposes trade protectionism and will not take protectionist actions against overseas companies or foreign goods, Minister of Commerce Chen Deming said here Friday. He made the remarks when he met the Minister of Knowledge Economy of the Republic of Korea (ROK), Lee Youn Ho. Chen said that media reports were incorrect when they equated China's latest circular to boost domestic demand and step up supervision on construction projects with protectionism. Chen said in China's government procurement, the term "domestic products" also include products produced by legally established foreign-funded companies in China. "China applied to join the World Trade Organization's agreement on government procurement a couple of years ago, which allowed member countries to bid on each other's government tenders." Chen said. "We hope China might join the agreement soon so as to further open up the government procurement market," he said. "China would like to maintain stable development in economic and trade cooperation with the ROK," Chen said. Lee said that China's trade policies were fair and transparent, and his country would like to work with China to oppose trade protectionism.
ASHGABAT, June 24 (Xinhua) -- Visiting Chinese Vice Premier Li Keqiang said here on Wednesday that the joint natural gas projects between China and Turkmenistan serve the fundamental and long-term interest of both peoples. Li made the remarks during a video conference with the Chinese and Turkmenistan's workers of China National Petroleum Corporation International (Turkmenistan). The workers had been busy with constructing a vast natural gas processing facility in a natural gas field some 700 kilometers southeast of Turkmenistan's capital Ashgabat. Chinese Vice Premier Li Keqiang (L Front) visits staff members of China National Petroleum Corporation International (Turkmenistan), in Ashgabat, Turkmenistan, June 24, 2009. The facility under construction is the starting point of the China-Turkmenistan pipeline, a part of the Central Asian Pipeline which starts at the border between Turkmenistan and Uzbekistan and runs through the southern part of Uzbekistan and central part of Kazakhstan before reaching to the Chinese northwest region of Xinjiang. Li said the China-Turkmenistan pipeline, initiated by the top leaders of the two countries, is a strategic project and has become a model for friendly cooperation between the two sides. He added that the project, after finished, would promote social and economic development of both China and Turkmenistan. Chinese Vice Premier Li Keqiang (2nd L Front) inspects, through a model, the construction of a natural gas plant of China National Petroleum Corporation International (Turkmenistan), in Ashgabat, Turkmenistan, June 24, 2009The Central Asian Pipeline, expected to be in operation at the end of this year, is connected with China's domestic natural gas pipeline network and thus can transport natural gas produced in Central Asian countries, especially in Turkmenistan, to major Chinese cities like Shanghai, Guangzhou and Hong Kong.
BEIJING, June 12 (Xinhua) -- The Prime Minister of the Republic of Korea (ROK) Han Seung Soo described Friday the rapid growth of bilateral ties with China as "unprecedented". "We have witnessed over five million ROK and Chinese people visit each other's country and the two-way trade volume expand 26 times bigger during the 17 years since ROK and China forged a diplomatic relationship", Han said. Han made the remarks in an interview with Xinhua on the sideline of a spring conference of the Institute of International Finance in Beijing. He said being neighbors, cultural similarity and friendship between the two peoples offered a solid foundation for the two nations to foster ties. China and the ROK agreed to upgrade their "comprehensive and cooperative partnership" to "strategic cooperative partnership" in May, 2008 during the ROK president Lee Myung-bak's first visit to China. Prime Minister of the Republic of Korea (ROK) Han Seung-soo (R) receives interview by a journalist from Xinhua News Agency in Beijing, capital of China, June 12, 2009. "We can see profound changes take place in almost all the fields of bilateral cooperation since then, especially in trade and economy, culture, education and youth exchange," Han said. He also recalled President Lee's visit last May to Dujiangyan, a city in Sichuan Province severely damaged by an 8.0-magnitude quake. "The ROK people were so concerned and feel deep sympathy about those who lost theirs lives or families in the disaster," Han said. He told Xinhua that the schoolboy Wei Yuehao who was held in the arms by President Lee during his visit to the quake zone was invited last month to the Cheong Wa DAE, the ROK presidential office "as a commemoration". Han said the ROK was severely hit by the financial turmoil and the ROK government, in a bid for the economic recovery, has come up with policies to stimulate domestic demand, step up financial investment and expand employment opportunity, which had worked. Han said China was the biggest trade partner and exporting market to the ROK, and he expressed his appreciation for the measures that China adopted to curb the effects of the financial crisis, noting that it would be a "win-win" solution if the two nations could work together to tackle the crisis. The prime minister also called on the Democratic People's Republic of Korea (DPRK) to abandon its nuclear test scheme and return to the six-party talks to address the nuclear issue on the Korean peninsula at an early date. On May 25, the DPRK announced it has "successfully conducted one more underground nuclear test," which Pyongyang said has demonstrated its "defensive nuclear deterrent." After the test, it also fired some short-range missiles. "The status of a non-nuclear peninsula is not only a must for the peace and stability on the peninsula, but also for that of East Asia and the world," Han said, expressing his hope that China, which chairs the six-party talks, could continue to play its positive and constructive role. Launched in 2003, the six-party talks grouped China, DPRK, ROK, the United States, Russia and Japan. The talks have been stalled since the top negotiators last met in Beijing last December.