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BEIJING, Feb. 3 (Xinhua) -- Chinese economists are again concerned about the value of the country's dollar-denominated assets after the U.S. government's budget plan unveiled Monday forecast a record deficit for 2010.The economists are worried that, if the Congress approved the budget plan, the U.S. federal government will issue more bonds and print more money to finance the deficit, which may prompt dollar depreciation. Dollar depreciation erodes the value of China's holdings of dollar-denominated assets.The same fears took hold almost one year ago when the U.S. government said it would issue up to 2.56 trillion U.S. dollars of treasury bond debt to stimulate the economy to get through the recession.This time the budget deficit is larger. The Obama administration on Monday proposed a budget of 3.83 trillion U.S. dollars for fiscal year 2011 with a forecast deficit of 1.56 trillion U.S. dollars in 2010.The planned fiscal deficit is 10.6 percent of gross domestic product (GDP) - up from a 9.9 percent share in 2009 - the largest deficit as measured against GDP since the second world war.He Maochun, director of the Center for Economic Diplomacy Studies at Tsinghua University, said the deficit would be financed by those holding U.S. dollar-denominated assets with the main channel to transfer the risks caused by the deficit being the issuance of U.S. treasury bonds.The U.S. is already in enormous debt, with Treasury data showing public debt topping 12 trillion U.S. dollars in November last year, the highest ever.To pay for the deficit, the U.S. federal government will borrow 392 billion dollars in the January to March quarter of 2010, according to a Treasury Department statement released Monday. It will then issue 268 billion U.S. dollars of treasury bonds in the second quarter.Experts said the record deficit suggests the federal reserve will continue to flood more money into the market. The massive issuance of treasury bonds, the large fiscal deficit and the printing of the dollar will prompt further declines in the value of dollar, they said.In 2009, the greenback depreciated against major currencies by 8.5 percent, according to China's State Administration of Foreign Exchange (SAFE).China is the biggest foreign holder of the U.S. government debt. As of the end of November last year, China held 789.6 billion U.S. dollars of U.S. treasury bonds. Moreover, more than 60 percent of China's 2.399 trillion U.S. dollar stockpile of foreign exchange reserves - the world's largest - is in dollars.Cao Honghui, director of the Financial Market Research Office of the Chinese Academy of Social Sciences (CASS), a government think tank, said the massive U.S. deficit spending and near-zero interest rates would erode the value of U.S. bonds.The U.S. government should not transfer the problems of enormous debt to other nations or regions that are creditors like China, he added.The SAFE said in a statement in December 2009 that China would diversify its foreign exchange reserve holdings - both currencies and securities - to reduce risk.Liu Yuhui, an economist with the CASS, said late last month China may scale back its purchases of U.S. debt on concern the dollar will decline.China trimmed its holdings of U.S. government debt by 9.3 billion U.S. dollars in November last year - the biggest cut in five months - taking them down to 789.6 billion U.S. dollars.Ding Zhijie, associate dean at the finance school at the University of International Business and Economics, said China had been securing its investment value by using its foreign exchange reserves for imports and acquisition in 2009."More reserves should be used for investment in materials and resources, which can reduce the risk," he said, adding that he expects the purchasing spree to continue this year.The deficit is expected to ease slightly to 1.3 trillion U.S. dollars in 2011, but that still represents 8.3 percent of 2011 GDP.But Ding said it is necessary for the U.S. to keep its powerful fiscal stimulus policy in place, as the economic recovery is fragile and remains uncertain.The U.S. economy shrank 2.4 percent in 2009, but the U.S. government is projecting GDP growth of 2.7 percent in 2010 and an unemployment rate average of 10 percent.Zuo Xiaolei, chief economist at China Galaxy Securities, said the U.S. had no choice but to rely on massive government spending to ensure the economic recovery.The budget deficit will pump money into the economy and generate jobs, which in turn will generate greater tax revenue that can help pay off the debt, Zuo said."But there is still a risk the policy will fail and that debt will grow beyond the government's ability to pay," in which case the entire global recovery will be threatened.
BEIJING, March 3 (Xinhua) -- Lawmakers from ethnic minorities in northwestern China's Qinghai Province on Wednesday urged for more favorable policies for the minority groups with small population, or the groups each with a population of less than 100,000."I hope the country will provide more support for industries with ethnic features in the the formulation of the 12th Five-Year Plan (2011-2015)," said Han Yongdong, who is also head of Qinghai's Xunhua Salar Autonomous County government."We also need more support for education and employment. Those policies would help the small ethnic groups cultivate an independent 'blood-making' capability to sustain their own development," said Han from Salar, one of China's 22 ethnic groups with small population.Compared with the country's booming coastal regions, regions where ethnic groups with small population live, mostly in central and western inland regions, remain relatively backward.To accelerate the development of the regions where ethnic groups with small population live, China's State Council passed in 2005 a guideline, promising to build roads, schools and basic medical institutions, and provide them with access to electricity, TV and phone service, and drinking water, in addition to sufficient farms and pastures to live on.According to statistics from the State Ethnic Affairs Commission, China had invested more than 2.5 billion yuan (about 368 million U.S. dollars) in 8,065 projects aimed to support small ethnic groups between 2005 and November 2009.But for Qiao Zhengxiao, another deputy to the NPC and Party chief of the Qinghai University, the aid to ethnic minority groups was still not enough."The central government mainly focused on Tibet and other regions of ethnic groups with relatively larger population last year and this year," said Qiao, from the Tu ethnic group."I hope the government will attach more importance to ethnic groups with smaller population in the future," he said.He suggested ethnic minority groups each with population less than 300,000 be covered by the favorable polices passed in 2005.Meanwhile, Han Yongdong also suggested that museums and research projects should be set up to protect the small ethnic groups' culture."My own kid cannot speak the Salar language. It would be too late if we don't start soon," he said.

SHANGHAI, March 12 (Xinhua) -- Shanghai General Motors (SGM) is contacting the owners of 2,065 Captive jeeps to recall the vehicles for repair due to risk of steering malfunction, the company said on Friday.The defected vehicles were manufactured by GM Daewoo Auto in the Republic of Korea between Sept. 18, 2007 and Dec. 31, 2008, said a spokesman with SGM.China's General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ) released a bulletin on Friday, approving SGM's application for the recall.SGM had received no customer reports on the defect, the spokesman said.GAQSIQ has stopped the importation of GM Daewoo Auto's Captive jeeps, according to the bulletin.
KHARTOUM, March 3 (Xinhua) -- Chinese Special Envoy to Darfur, Liu Guijin, on Wednesday reiterated his country's support to the ongoing efforts to find a peaceful settlement to the Darfur crisis. "China believes in the importance of finding a comprehensive and lasting peace agreement on the Darfur issue, and encouraging the conflicting parties to achieve a comprehensive peace and resolve the root-causes of conflicts in the region," Liu told reporters after his meeting with Sudanese President Omar al-Bashir.Visiting Chinese Special Envoy to Darfur Liu Guijin speaks at a press conference after meeting with Sudanese President Omar al-Bashir in Khartoum, capital of Sudan, March 3, 2010. Liu Guijin on Wednesday reiterated China's support to the ongoing efforts to find a peaceful settlement to the Darfur crisis. He expressed China's support for the peace process in Darfur, saying "China supports the normalization of Sudan-Chad relations, the framework agreement recently signed between the Sudanese government and the Justice and Equality Movement (JEM) and the negotiations between the government and all the Darfur factions."In the meantime, Liu expressed China's confidence in Sudan's ability to organize free and credible elections, saying "China has provided a financial support for the electoral process in Sudan." Sudanese President Omar al-Bashir (R) meets with Chinese Special Envoy to Darfur Liu Guijin (2nd L) as Chinese Ambassador to Sudan Li Chengwen (1st L) looks on in Khartoum, capital of Sudan, March 3, 2010. Liu Guijin on Wednesday reiterated China's support to the ongoing efforts to find a peaceful settlement to the Darfur crisis"The Chinese government has decided to send observers to monitor the elections," he added.He further expressed China's appreciation of the success of the signatories to the Comprehensive Peace Agreement (CPA), the National Congress Party (NCP) and the Sudan People's Liberation Movement (SPLM), in overcoming the issues which hampered implementation of the CPA."The two partners have managed to overcome the barriers through dialogue and concessions," he said.On Sunday, the Chinese envoy started his visit to Sudan during which he held talks with a number of Sudanese officials in Khartoum.He also visited Juba in south Sudan and held talks with the Sudanese First Vice-President and President of the government of south Sudan Salva Kiir Mayardit.
BEIJING, Feb. 2 (Xinhua) -- China promulgated a regulation Monday requiring meteorological authorities to conduct research on meteorological disasters, in an effort to reduce the damage from natural disasters like sand storms, blizzards, droughts, typhoons and icy weather.The Legislative Affairs Office of the State Council, the Cabinet, said Tuesday in a statement the regulation is designed to better protect people's lives and properties.The regulation, which takes effect April 1, requires meteorological authorities above the county level to conduct research on the frequency, intensity, and impact of meteorological disasters, and to set up a database to better evaluate risks.Schools are asked to teach students how to protect themselves and rescue others during natural disasters under the guidance of educational or meteorological authorities.The regulation also specifies the media's role in the event of meteorological disasters.Media organizations are responsible for the release of disaster warnings and alerts given by the local meteorological centers, the regulation says.Media organizations that fail in their responsibilities, release false information, or release alerts without authorization face fines of up to 50,000 yuan (about 7,322 U.S. dollars), according to the regulation.Media groups must cover the occurrence and development of disasters and emergency situations "timely and correctly", it reads.China is one of the countries most susceptible to natural disasters and 70 percent of disasters occurring in China are meteorological ones, according to the statement.
来源:资阳报