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BEIJING, March 3 -- The China Development Bank (CDB) will mainly serve medium- and long-term national development strategies even after it is transformed into a commercial bank, a senior executive said on Sunday. A China Development Bank office in Shanghai. The China Development Bank (CDB) will mainly serve medium- and long-term national development strategies even after it is transformed into a commercial bank, a senior executive said March 2, 2008.      The CDB cannot turn into a commercial bank immediately since it does not accept individual deposits now, but it will start doing so in the future, said Liu Kegu, vice governor of the bank.     The CDB is one of the three policy lenders in the country.     The CDB at the end of last year received the first 5 billion U.S. dollars of the planned 20-billion-dollar re-capitalization from Central Huijin, an investment arm incorporated into China Investment Corp (CIC).     Liu said the capital injection will not affect the CDB's credit rating since it has the best asset quality among domestic banks. It has a non-performing loan ratio below 1 percent - much lower than that of major commercial banks.     The CDB will retain its long-term credit business and the right to issue financial bonds in the interbank market.     The lender has generated controversy in the banking industry by increasingly becoming involved in commercial business in recent years.     Earlier reports said that the CDB is planning to expand into financial leasing to diversify its business. It is reported to be on the verge of acquiring Shenzhen Financial Leasing Co Ltd for 7 billion yuan, by taking a 90 percent stake.

China will cooperate more with the European Union (EU) to develop safety and security criteria for products, a leading official from the top product quality supervision authority said Wednesday.To increase joint efforts to establish a product safety control system, the two sides have agreed to establish a joint information platform for industrial products, Wei Chuanzhong, vice-minister of General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), said."We will assess what it will take to set up a database for the platform by the end of this year," Wei said."The information platform will help solve problems arising from bilateral trade, providing a more effective way to push forward win-win trade development," Wei said.Wei made the remarks after the sixth annual meeting of the Negotiating Mechanism on Sino-EU Industrial Product and WTO/TBT (World Trade Organization/technical bar-riers to trade), which took place in Beijing Wednesday.Under the negotiating mechanism, which was launched early in 2002, China and the EU have set up 10 working groups covering trade issues in several industrial sectors, such as textiles, medical devices, electrical and mechanical devices, chemicals and cosmetics.He said a four-month product-safety inspection campaign launched by the AQSIQ is currently underway nationwide.Prior to yesterday's meeting, the EU also signed the first agreement for cooperation on pharmaceuticals and related products with the Chinese State Food and Drug Administration, according to the delegation of the European Commission to China."We will not impose any discriminative supervision regulations on Chinese products exported to the EU market. Instead, we are willing to offer technological support to Chinese enterprises to ensure an effective control over product safety," Heinz Zourek, director general for Enterprise and Industry of the European Commission, said.

NEW YORK - The overheating of the Chinese stock market is a structural problem that will be resolved by developing more financial products and cracking down on illegal activities, a Chinese securities regulatory official said Thursday. Hu Bing, deputy director-general of the market supervision department at the China Securities Regulatory Commission, said at a conference in New York that authorities are seeking to roll out more products to broaden investors' options, such as real estate investment trusts, or REITs, as well as listed infrastructure funds. Other eventual offerings will include derivatives products such as stock-index futures and warrants. These products will be launched "when conditions are ready," Hu said at a China Investment Forum sponsored by Merrill Lynch and Institutional Investor. He said he couldn't provide a clearer timeline for when those products would be ready. Hu acknowledged a "liquidity surplus problem" that is contributing to the overheating of the Chinese stock market and noted that hot-money inflows coming in through illegal channels are exacerbating the problem. Tackling the liquidity issue is a long-term project that "cannot be resolved just by (raising) the interest rate," Hu said. "So the structural problem has to be resolved using structural measures." Earlier this week, the Chinese government tripled its stamp tax on stock trades in an effort to rein in the equity market. The Shanghai Composite Index more than doubled in 2006 and is still up around 50 percent so far in 2007. Hu said China's capital markets are still young and face a "golden opportunity" to develop their depth and breadth. The majority of individual investors rely on rumors or inside information to make their decisions, leading to speculative gains in stocks, he said. Hu said authorities are stepping up efforts to crack down on insider trading, "but because this is a transitioning society in an emerging market, it will take a long time."

The country's campaign to improve product quality and food safety has yielded very good results, Vice-Premier Wu Yi said in Weifang, Shandong Province, October 26, 2007. [Newsphoto]Weifang - The country's campaign to improve product quality and food safety has yielded very good results, Vice-Premier Wu Yi said on Friday.Despite that she urged: "We have to win this special war against poor product quality and supervision, enabling our people to eat without fear."Wu said the government has raised its investment in agriculture, especially in pesticide supervision and fertilizers management and to prevent fake products from entering the sector.Besides, authorities will strengthen supervision and inspection on vegetables and other food products in major cities, bringing all wholesale markets within the authorities' monitoring system.Officials are already monitoring all wholesale markets for agricultural products in 676 medium- and large-sized cities, Minister of Agriculture Sun Zhengcai said.Latest data suggest 94 percent vegetables and 95 percent aquatic products in cities have pesticide residue below the danger level.Also, more than 97.4 per cent of the pigs are slaughtered in registered abattoirs. The authorities closed down 602 illegal and 4,051 slaughterhouses in the first half of this year alone.Concerns over Chinese products safety prompted the government to formed a cabinet-level panel on food safety and quality control under the vice-premier in August.Eight categories of products are under the panel's scanner, including pork, drugs, agricultural products, processed food, toys and electric wires. The "special war" is aimed at improving product quality in four months.At a meeting in Weifang, Shandong Province, Wu lauded the province's advanced practice in product quality and food security management."Shandong's experience in standardized plantation of vegetables, aquatic products and some other agricultural products has been proved effective and worth promoting nationwide," Wu said.It brings irrigation and the condition of cultivable areas, particularly where chemicals are used, under a quality control system, which will be overseen by local officials, Shandong Governor Jiang Daming said.The province has taken the lead in the country to set up internationally recognized systems of quality standards, quality testing, attestation and supervision, securing a high standard of food quality from every link of production, processing and transportation.And more than 400,000 people in the province have attended into food safety education training sessions since August.

Aerospace experts saved the country's first ever manned space mission as the spaceship faced a potentially lethal impact while flying through the communications blackout area before landing, the country's space authorities revealed yesterday.China became only the third country to put a man in space, after the former Soviet Union and the United States, when Yang Liwei orbited the Earth in 2003 in what was a resounding success for its space program.But Xinhua News Agency reported that this was almost not so, quoting the Xi'an Satellite Monitor and Control Center's report on the dangers the Shenzhou V rocket faced."Yang lost every means to communicate with the ground command and control headquarters as he entered the ( Earth atmosphere), which fell in the worst-case scenario prepared by the space mission team," Xinhua quoted Dong Deyi, head of the center, as saying.Communications go down when any spacecraft re-enters the Earth's atmosphere, but in Yang's case, "even radar could not capture any signal from the returning module", Dong was quoted as saying. "After the Shenzhou V came out of the blackout area, the echo signals from the spaceship were still volatile, which sufficiently threatened the safe landing of astronaut Yang."Mission control promptly ordered optical guiding and tracking instead of a communication-guided landing, Dong was quoted as saying."Aerospace technologists used cinetheodolites (optical trackers) on the ground to measure the spacecraft's position and record movements. Precise positioning of the spacecraft enabled officers to properly control the slow-down parachute, which was vital to a soft landing."But the landing was 9 km east of the planned site, Dong said.China began its clandestine manned space program in 1992. The country has since spent at least 20 billion yuan (.64 billion) on the project and sent three astronauts into orbit.Dong also revealed that at least three orbiting satellites were malfunctioning during certain periods, but all had been salvaged by experts since October 2006.The Xi'an center, established on June 23, 1967, in the mountains of Northwest China, has monitored and controlled more than 100 satellites and the six Shenzhou spaceships. According to official records, China now has at least 19 satellites orbiting the earth.China plans to chart every inch of the moon's surface as part of its ambitious space program.China, which plans to launch a lunar orbiter called "Chang'e I" in the second half of this year to take 3D images, would aim to land an unmanned vehicle on its surface by 2010, Zhang Yunchuan, minister of the commission of science, technology and industry for national defense, said on Friday.Xinhua-Agencies