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BEIJING, Jan. 14 (Xinhua) -- China's State Council unveiled a long-awaited support package for the auto and steel sectors Wednesday to boost the two "pillar industries". Under the plan, the government will lower the purchase tax on cars under 1.6 liters from 10 percent to 5 percent from Jan. 20 to Dec. 31 in a bid to stimulate sales. It will also allocate 5 billion yuan (730 million U.S. dollars) to provide one-off allowances to farmers to upgrade their three-wheeled vehicles and low-speed trucks to mini-trucks or purchase new mini-vans under 1.3 liters from March 1 to Dec. 31. It will also increase subsidies for people to scrap their old cars and will straighten out and cancel regulations that restrict car purchase. The plan encourages large auto companies, as well as major auto-part makers to expand through mergers and acquisitions so as to optimize resources and improve their competitiveness on the international market. In the next three years, the central government will earmark 10 billion yuan as a special fund to support auto companies to upgrade technologies, and develop new engines that use alternative energies. The government will offer financial support to promoting the use of energy-saving autos and those fueled by new energies, and support automakers to develop independent brands and build auto and parts export bases. The plan also urges improvements in the credit system for car purchase loans. More than 93 percent of Chinese vehicles are sold in the domestic market, but less than 10 percent are purchased on credit. It also requires accelerated upgrading of the steel sector, transforming "big" industry competitors into "strong" international players. It said the industry needed to eliminate outdated technology, and must not establish new projects that merely add to steel output. China also needed to increase domestic demand for steel and adopt a more flexible tax rebate policy to keep international markets. Special funds will be allocated from the central budget to promote technological advancement of the sector, readjustment of products mix and improvements of product quality, according to the plan.
CHENGDU, Jan. 27 (Xinhua) -- More than one million migrant workers, who were forced to return home late last year amid the impact of the global financial crisis, have found new jobs in southwest China's Sichuan Province. Out of the 1.49 million migrant workers who had returned home, 1.03 million have found new jobs through training and job fairs organized by the government, according to the provincial labor and social security department. About 38 percent of them engage in farming and breeding, 43 percent work in the towns and the rest leave home again and find their new jobs in other provinces. So far, Sichuan has provided 5,000 training classes to 250,000 migrant workers. It also organized 53 job fairs specifically for the migrant workers, helping some 100,000 find new jobs. The province is expected to invest 80 million yuan (11.7 million yuan) this year on migrant workers training, up 77.8 percent year on year.
BEIJING, Jan. 31 (Xinhua) -- Chinese President Hu Jintao held a telephone conversation with his U.S. counterpart Barack Obama on bilateral ties Friday, with both sides expressing the willingness to further the ties. The Chinese president said China is ready to strengthen dialogue, promote mutual trust and expand cooperation with the United States in a bid to confront various global challenges together and push forward a stable development of the Sino-U.S. relationship. Hu said the core interest of either country should be respected by each other and taken into consideration. As the contagious financial crisis is still producing severe influence to national economies and people's lives, the international community should strengthen coordination and promote closer cooperation to stand up to the challenge, Hu said. Describing the Sino-U.S. ties as the most important bilateral relations for both sides, Obama said enhancing bilateral constructive dialogue and cooperation is in the interest of not only the two countries themselves, but the world at large. The U.S. side is expecting closer cooperation with China on major international and regional issues, he said, adding that the U.S. government is willing to join hands with China to develop a more active and constructive bilateral relationship. Hu Jintao said China acknowledged U.S. efforts in stabilizing the financial market and stimulating the economy, adding that China is willing to further strengthen communication and coordination with the U.S. side in macroeconomic policies, and firmly oppose trade and investment protectionism. Hu said China will join hands with the United States to work toward fruitful achievements in April's Group of 20 (G20) summit in London and promote healthy and stable development of the world economy and finance. Obama said it is crucial for the United States and China, the two most important economies, to enhance cooperation. Both sides exchanged visit invitations. The two leaders agreed to meet in the Group of 20 (G20) summit slated for April in London.
ATHENS, Nov. 26 (Xinhua) -- Chinese President Hu Jintao finished the last leg of his five-nation trip here on Wednesday and embarked on his way home. The trip, which began on Nov. 14, took him to a financial summit in Washington and the Economic Leaders' Meeting of the Asia-Pacific Economic Cooperation (APEC) forum in Lima. He also paid state visits to Costa Rica, Cuba, Peru and Greece. At the Washington summit, the Chinese leader outlined China's propositions on responding to the international financial crisis, explained major measures adopted by the Chinese government to ensure financial stability and economic development, and made proposals on reforming the international financial system. At the APEC meeting, President Hu made proposals on furthering Asia-Pacific regional cooperation in dealing with the world financial crisis, the Doha Round of WTO negotiations, food and energy security, and other pressing issues facing the world and the region. During his state visits to Costa Rica, Cuba, Peru and Greece, the Chinese president and leaders of the four nations exchanged views on the further development of bilateral relations and reached broad consensus on expanding friendly and mutually beneficial cooperation. In Lima, Hu and his Peruvian counterpart Alan Garcia announced the conclusion of a bilateral free trade agreement (FTA) and the upgrading of bilateral ties to a strategic partnership.
BEIJING, Nov. 1 (Xinhua) -- In the space of a year, Yang Chanjuan's career plan has changed direction. A soon-to-graduate college student in economics, Yang is feeling her fortunes being buffeted by the financial crisis. Yang was recently told by her schoolmates already working in the financial sector that their companies would cut staff, or there would no bonus this year. Amid the turmoil and full of uncertainty, a job in banking or securities company was no longer desirable to her. As a result, she decided to apply for a government job. Yang's change in career plan came as the financial crisis is spreading around the world. As it is now beginning to hit the real economy, more and more people, not only those in banks, have lost their jobs. International Labor Organization (ILO) estimated earlier that the financial crisis would cost 20 million jobs globally by the end of 2009. The ILO said the new projections could prove to be underestimates if the effects of the current economic turmoil are not quickly confronted and plans laid for the looming recession. Migrant workers fill in application forms at a job fair in Chongqing, southwest China on Jan. 1, 2008. International Labor Organization (ILO) estimated earlier that the financial crisis would cost 20 million jobs globally by the end of 2009. In the birthplace of the crisis, the United States, big companies from Goldman Sachs to Coca Cola, Motorola to Alcoa, have all announced their job cut plans. Economists believed the jobless total could increase by 200,000. Back to China, unemployment now becomes a concern too. Although with 2-trillion U.S. dollars of foreign reserves, a budget surplus and a controlled capital market, China would suffer limited direct impact from the crisis. However, weakening demand from its major markets, North America and Europe, is now leading China's real economy in the export sectors into a tough situation. In China's coastal areas, export enterprises are now struggling with soaring labor cost and fewer orders from foreign customers. Many toy factories in South China's Guangdong Province were shut from January to July this year. Earlier last month, two big factories of a Hong Kong listed toy-maker were shut. As a result, 7,000 workers lost their jobs. Affected by the global financial crisis, the company was suspended from trading thus it faced severe shortage of current funds. Statistics from the Ministry of Commerce showed that China's export suffered a growth slowdown in the first three quarters compared with the same period last year -- from 27.1 percent to 22.3 percent. The government said the gross domestic product (GDP)growth rate in the first three quarters this year slowed to 9.9 percent - a 2.3 percentage points fall compared with the same period last year. "The greatest impact is on these labor-intensive, small and medium-sized export enterprises," said Wang Dewen, a labor economist from China Academy of Social Sciences. These export-oriented enterprises that make China the world's workshop, are mainly small and medium-sized and vulnerable to market changes. These are China's major employers, absorbing 70 percent of the aggregate 20-million new jobs every year. Wang said that the lower-end labor market, especially the migrant workers who are the biggest source of employees in the export enterprises, would suffer from unemployment. As the crisis is now just beginning to hit the real economy, the whole situation could be worse if there is no countermeasure. The fear of unemployment is also hovering over other places. College students and white-collar workers are now worried about their future in the open market.