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HANGZHOU, Feb. 13 (Xinhua) -- Days before its 4,000 employees, mostly migrants, started off upon their annual trips home for the Chinese Lunar New Year, Tiansheng Group, a textile company in the eastern Zhejiang Province, promised pay rises hoping workers would all come back after the holiday."We are expecting a severe shortage of skilled workers this year," said Wei Guoliang, president of the company's trade union. "We'll be short of at least 1,000 workers in Spring."Lu Laofa (R), a 40-year-old migrant worker from southwest China's Guizhou Province, and his children make a free phone call with their relatives at the railway station of Hangzhou, capital of east China's Zhejiang Province, Jan. 31, 2010Located in Shaoxing County, Asia's biggest textile base, Tiansheng Group relies mostly on migrant workers from Anhui, Henan and Sichuan provinces for production.Fearing it might lose some of its best employees, the company's management offered an average 15-percent pay rise for all workers, plus higher meal allowances and better medical insurance starting on March 1.The offer was printed out and posted at the company's main entrance to catch the workers' attention."We don't know if it will work," said Wei. "But we do hope the workers will come back after the Spring Festival."Two farmer migrant workers who returned home for the Spring Festival take part in a lathe-hand technical training at Juye County, east China's Shandong Province, Feb. 5, 2010.While the Spring Festival falls Sunday, most migrants would stay home for about two weeks for the most important Chinese holiday.For years, migrant workers are the mainstay of labor forces in China's leading manufacturing bases in the Shanghai-centered Yangtze River Delta and the Guangzhou-centered Pearl River Delta.Yiwu City in Zhejiang Province, known for its small commodities including the world's biggest supply of toys and Christmas gifts, is also feeling the pinch of worker scarcity.After a recruitment tour to underdeveloped western provinces of Guizhou, Shaanxi and Yunnan last year, Huang Yunlong, head of the city's labor management bureau, said the situation would be tough for local employers this year.Migrant workers gesture on their chartered flight at the airport in Hangzhou, capital of east China's Zhejiang Province, Feb. 4, 2010In a recent survey in Lishui, a manufacturing town close to Yiwu, 4,000 of the 6,000 migrants who were heading home for the new year said they would stay in their hometowns for jobs or do farmwork after the holiday.Hoping to ease the labor shortage, Red Leaf Umbrella Co. encourages its employees to introduce new workers and offers a 600 yuan cash reward for each new recruit."The worker shortage is a result of the fast economic recovery, as well as the new policies by central and local governments to stimulate growth in the central and western regions," said Zhuo Yongliang, a researcher with Zhejiang Provincial Institute of Development and Reform.Amid the economic recovery, a Yiwu-based restaurant consumes 600 packs of wet tissues a day, as against 400 packs during the international financial crisis last year."The worker shortage, as well as the heavier workload for individual employees, have forced employers to offer better pays and compensation packages -- it's a good thing to this end," said Prof. Wu Jinliang with the Zhejiang Provincial Party School. "But it also eats way the competitive edge of thousands of small businesses that used to rely on cheap labor."Besides the worker scarcity, many entrepreneurs are also worrying about the skills and overall quality of their employees.Zhou Xiaoguang, president of a Yiwu-based decoration firm, remembers the dainty products he saw at an exposition in Europe. "Why can't we produce stuff like that? We can spend heavily to buy better equipment and hire better designers, but we don't have high-caliber workers at our production lines."Langsha Group, China's leading producer of socks and stockings, dropped a procurement plan last year for an Italian-made automatic packing machine that could spare the manual work of 30 workers and improve quality."No one is able to run the machine or fix it if it breaks down," said the group's president Weng Rongdi. "Our lack of training for the workers is a big problem.""Like all other Chinese manufacturing companies, we need high-caliber workers if we want to make further breakthroughs," he said.

BEIJING, March 14 (Xinhua) -- The amendment to the Electoral Law adopted by the National People's Congress (NPC), China's parliament, marked an important step to improve the people's congress system and advance socialist democracy, the People's Daily said in an editorial to be published Monday.The NPC concluded its annual session here Sunday after adopting an amendment to the Electoral Law, which grants equal representation in legislative bodies to rural and urban people.The amendment could better demonstrate equality among people, regions and ethnic groups, and promote social harmony, the editorial said.The editorial also spoke highly of the NPC session as an important meeting in the crucial era for China to deal with the global financial crisis, maintain steady and relatively fast economic development, and accelerate transformation of the economic growth mode.The NPC endorsed the government work report delivered by Premier Wen Jiabao, which highlights scientific development, transformation of the economic growth mode, innovation and improvement of people's livelihood, the editorial said.The editorial hailed the achievements of the NPC Standing Committee in 2009 and called for the NPC to make intensified efforts in legislation and supervision work and keep in closer contact with the people in 2010, the last year for the implementation of the country's 11th five-year plan (2006-2010).

BEIJING, Feb. 23 (Xinhua) -- Access to finance for China's small enterprises generally improved in 2009, but still was not good enough, said the country's top banking regulator on Tuesday.Outstanding loans to small Chinese enterprises added to 5.8 trillion yuan (849 billion U.S. dollars) as of the end of 2009, China Banking Regulatory Commission (CBRC) said in a statement posted on its website.The figure accounted for 22 percent of total corporate loans by the end of last year, 1 percentage point higher than a year ago, said the CBRC.The CBRC data showed that the growth rate of new loans to small enterprises in 2009 was 5.5 percentage points higher than that of the total corporate lendings and 0.61 percentage higher than all lendings.China has set a target of keeping the growth rate of new small business loans higher than that of all loans in 2010, and the amount of new loans should be bigger than the previous year, said the CBRC."Small enterprises" in China refers to those with assets worth less than 10 million yuan or annual sales less than 30 million yuan, according to a CBRC document.Last December, China promised to help improve the financing mechanisms to help small and medium enterprises (SMEs), as they were worst hit by the financial crisis and have had difficulty securing loans as commercial lenders preferred state-owned enterprises and large key projects, as the risk was not as great.SMEs refers to enterprises whose annual business revenue is below 300 million yuan. But in retail and accommodation industry, the maximum annual business revenue is 150 million yuan for an SME.

BEIJING, Feb. 19 (Xinhua) -- U.S. political rhetoric has recently been obsessed with the exchange rate of the renminbi. President Barack Obama has indicated on several occasions that he would take a tougher stance on this issue in order to address trade imbalances between his country and China.But does the renminbi hold the key to this issue? What are the backstage calculations behind those demands from Washington?RENMINBI A WRONG TARGETWhile addressing Democratic senators early this month, Obama said the issue of renminbi exchange rate must be addressed to ensure that American products will not be put into a huge competitive disadvantage given the fact that China is going to be one of America's biggest markets.In an interview with Businessweek on Feb. 10, Obama said he and Chinese leaders are going to have some "very serious negotiations" on the renminbi issue.Supporters of Obama include economists such as Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics. Those experts say China's huge trade surplus is a result of an undervalued renminbi. Appreciation of the Chinese currency, in their view, would re-balance China's international trade.However, the validity of such argument is questionable.The Japanese yen, for example, has been appreciated enormously against the U.S. dollar over the past 40 years. Yet Japan's trade surplus with the United States has been continuously on the increase over the same period.The case with the Japanese yen has clearly demonstrated that international payment is not necessarily entirely linked to currency exchange rates. International trade balance is rather determined by international division of labor and product competitiveness.Stephen King, chief economist of the HSBC bank, said it is unreasonable to simply attribute China's big trade surplus to an undervalued currency. China's high savings rate is a more important factor in this respect, he told Xinhua.Nobel Prize laureate Andrew Michael Spence shared King's argument."Reducing the surplus in China involves deep structural change, much as reducing the U.S. deficits does. China's high savings are embedded in the structure of the economy," Spence wrote in Jan. 21's Financial Times.Without structural change, an appreciation of the renminbi might well lead to continued high savings and slow economic growth in China, rather than to a reduction of China's trade surplus, he wrote.International Monetary Fund (IMF) chief economist Olivier Blanchard believes that renminbi appreciation is not a solution for the U.S. economy.According to an IMF model, the American GDP will grow by 1 percent when the renminbi appreciates by 20 percent and other major Asian currencies also appreciate by a similar margin, he told Xinhua."This would be good news for U.S. growth. But this is clearly not enough, by itself to sustain growth in the United States," said Blanchard.World Bank chief economist and Vice President Justin Yifu Lin also said that the appreciation of the renminbi will not solve the problem of trade imbalance between China and the United States. On the contrary, such a move might damage both economies.CHINA BASHING NOT HELPFULObama has frequently attacked China over the renminbi issue in recent months. His motives are thought-provoking.In an article titled "Obama bashes China in order to win midterm elections," Japanese weekly Choice pointed out that after one year in office, the U.S. president now faces a sharp drop in approval ratings, a double-digit unemployment ratio and the loss of Democratic "supermajority" in the Senate.Trying to win the midterm elections under such circumstances, Obama had moved toward a "China-bashing" policy since the end of last year, including imposing high tariffs on Chinese products and pressuring China on renminbi exchange rate.But the truth is China has become the largest victim of U.S. trade protectionism since the outbreak of the global financial crisis.According to statistics released by the United States International Trade Commission, there were roughly 50 trade remedy cases filed by the United States between January and November 2009, half of which targeted China.At the end of last year, Chinese Premier Wen Jiabao said in an exclusive interview with Xinhua that some foreign countries kept asking China to appreciate its currency while using various protectionist measures against China. Their real motive was to contain China's growth, he said.Wen reiterated that China will never yield to external pressures on the exchange rate issue.In essence, a country's exchange rate policy is a matter of sovereignty.During a meeting with a visiting delegation of U.S. Chamber of Commerce in May 2005, Wen made it clear that the reform of renminbi's exchange rate was a sovereign right of China, and that every country had the right to choose a foreign exchange system compatible to its own national conditions and a reasonable exchange rate level.Wen said China would obey the rules of a market economy, but would never give in under foreign pressure.Any foreign pressure or attempt to manipulate the issue via news media represented a politicization of economic issues, which was unhelpful, the premier added.George Gilder, founder of Discovery Institute, said that it is neither realistic nor helpful for the United States to raise the renminbi exchange rate issue again with China.Pieter Bottelier, former chief of the World Bank's Resident Mission in China, told Xinhua that China and the United States share broad common interests.A prosperous, stable and strong China is in the interests of the United States and vice versa, said Bottelier. The two nations need to settle their differences through various dialogue mechanisms, he added.In recent years, China has been making efforts to balance international. The renminbi has been steadily appreciated against the U.S. dollar and the euro.Between July 2005, when China began its renminbi exchange rate reform, and the end of 2009, the value of the renminbi has appreciated by 21.21 percent against the U.S. dollar and up by 2.21 percent against the euro.Under such circumstances, China has been the fastest growing export market for the United States in recent years.In 2009, U.S. exports to China amounted to 77.4 billion dollars, accounting for an increasingly larger share in the country's total exports.During the same period, U.S. trade deficits with China dropped by 16 percent year-on-year.In the Asian financial crisis of late 1990s, China won worldwide applause for keeping a stable exchange rate of the renminbi.In the ongoing global financial crisis, while the world's major currencies all lost value, China has remained committed to a responsible renminbi exchange rate policy and has made significant contributions to the recovery of the global economy.Many experts familiar to China-U.S. trade pointed out that in order to achieve trade balance, the United States should take positive and concrete steps, such as increasing hi-tech exports to China and allowing Chinese firms to acquire shares in U.S. financial and technology sectors.