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BEIJING, April 11 (Xinhua) -- Although China registered the first monthly trade deficit last month in six years, that would be temporary as the demand for imports is likely to ease with the expected moderation in domestic fixed asset investment, said an economist of JP Morgan Chase."With an anticipated recovery in developed economies this year, Chinese exports should improve gradually over the coming months," said Jing Ulrich, chairman of China Equities and Commodities of the U.S. bank in a research note Saturday.That will be proved by the forward looking new export orders component of China's official PMI (Purchasing Managers's Index) which increased to 53.7 in March from 50.3 in February, she said.China reported trade deficit of 7.24 billion U.S. dollars in March, the first since April 2004, as exports rose 24.3 percent year on year, while imports jumped by 66 percent."The pace of China's export recovery and dynamics of imported inflation will shape the country's approach towards currency valuation. A return to the policy of gradual RMB appreciation would allow China to mitigate imported inflation and promote domestic consumption by boosting household purchasing power in local currency terms," she said.She noted that in the longer-run, more flexibility in China's currency regime would allow the central bank to set monetary policy with greater independence from the U.S. Fed Reserves.
GYEONGJU, South Korea, May 15 (Xinhua) -- China on Saturday called on related parties to keep calm, exercise restraint and appropriately handle Cheonan incident.Chinese Foreign Minister Yang Jiechi made the remarks while meeting with his South Korean counterpart Yu Myung-hwan ahead of a trilateral foreign ministers' meeting of China, Japan and South Korea, Chinese foreign ministry spokesman Ma Zhaoxu said.Yang said the sinking of the South Korean navy ship "Cheonan" is an unfortunate incident. Considering the current complicated and sensitive situation on the Korean Peninsula, China hopes all parties concerned should start from the stability and peace of the Korean Peninsula and the region, proceed from long-term interest, keep calm and exercise restraint to appropriately handle the Cheonan incident.As for what the Japanese side said during the two-way meeting between Yang and his Japanese counterpart Katsuya Okada that Chinese marine surveillance ships' enforcement activities on Japan 's scientific research ships east of "medium line" has damaged Japan's sovereignty and interests, Yang stressed that China remains clear and consistent position on the East China Sea issues. He said China has never recognized the so-called "medium line" proposed unilaterally by Japan, noting that the Japanese side has no right to adopt unilateral actions in the disputed sea, according to the spokesman.The spokesman said the two sides agreed to calmly deal with related issues to avoid worsening the situation and affecting the bilateral ties.Regarding to what the Japanese side mentioned during the meeting that its surveillance actions on the Chinese Navy's recent training in East China sea are in line with the International Law, describing the Chinese side's actions as "dangerous", Yang reaffirmed that the Chinese Navy are conducting normal training, which poses no threat to any country.Yang hoped that the two countries' defense authorities could enhance mutual trust by further strengthening exchanges and communications, so as to prevent misunderstanding and misjudgment, according to the spokesman.
BEIJING, April 14 (Xinhua) -- China's economic development environment remains "very complex" with difficulties and problems persisting in the process of its economic recovery, said the State Council Wednesday.The national economy was heading toward the goal of macroeconomic regulation, with a strong foundation for economic recovery, said a statement released after a Wednesday executive meeting of the State Council, the Cabinet, chaired by Premier Wen Jiabao.The fast economic growth can be, to a large extent, attributed to the stimulus package.As the economic recovered, old difficulties remained and new problems emerged, said the statement.With trade protectionism on the rise and major economies suffering from climbing unemployment rates, uncertainties remained in the global economy, said the statement.Severe drought in southwestern China, how to increase grain production and rural people's income, growing inflation expectations, especially soaring housing prices, managing financial risks, and pressure of increasing unemployment were posing great challenges to the economy, said the Cabinet."We should never rest in the face of these problems and difficulties," said the statement.In resolving the problems, China would give top priority to speeding up the transformation of the economic development mode and improving the quality of economic growth, according to the statement.The government would introduce measures to boost agricultural production, improve financial management and regulation, stabilize prices, rein in soaring property prices, expand domestic demand, push forward economic restructuring, increase energy saving and emission cuts, enhance the opening-up policy and improve the people's livelihood.
SEOUL, May 26 (Xinhua) -- Chinese Premier Wen Jiabao's visit here, starting Friday, will strongly boost the friendly cooperative relationship between China and South Korea, Chinese ambassador Zhang Xinsen told Xinhua in a recent interview.Zhang said Wen's second official trip to South Korea after previously visiting in April 2007 would allow him to exchange views with South Korean leaders on further deepening the strategic cooperative partnership between the two countries. He would also have extensive contacts with various sectors here, which would surely boost the bilateral ties and bear richer fruit in the future.The ambassador said, as good neighbors, China and South Korea had made joint efforts to achieve rapid and all-round development of the bilateral ties since the two countries established diplomatic relations in 1992. In 2008, Chinese President Hu Jintao and his South Korean counterpart Lee Myung-bak successfully exchanged visits and upgraded relations between the two sides to a strategic cooperative partnership. Since then, the exchanges and cooperation between the two countries' various fields have been further deepened.Multi-level communication channels, covering government agencies, parliaments, academic sectors and media, had been established, and high-level exchanges between the two sides also remained frequent, the ambassador said.The two sides also maintained good communication and coordination on issues such as trilateral cooperation among China, Japan and South Korea, integration of East Asia and global climate change under various bilateral and multilateral frameworks, and reached consensus on further strengthening the strategic cooperative partnership, maintaining peace and stability in the region and expanding cooperation in international affairs, he said.In the economic and trade field, two-way cooperation had been broadened and enhanced, Zhang said, noting that China was the largest trade partner, export destination country and import market for South Korea, while the latter was the third biggest trade partner for China. The two countries also worked closely when the world was hit by the global financial crisis, Zhang said, citing the bilateral currency swap accord involving some 28 billion U.S. dollars, in an effort to safeguard regional and global financial stability.Meanwhile, the active people-related exchanges also contributed to deepening mutual understanding and friendship between the two peoples, the ambassador said. This year, during which China is hosting World Expo 2010 in Shanghai, and 2012, in which a similar event will be hosted in South Korea's southern city of Yeosu, were designated as Visit China Year and Visit Korea Year, respectively. More than one million South Koreans are expected to travel to China to visit the Shanghai Expo, and the South Korean Pavilion has become one of the most popular pavilions, Zhang said.China and South Korea, both important countries in Asia and in a crucial stage of development, had a broad prospect of cooperation, the ambassador said.Since uncertainties remained in the global economy, both China and South Korea were adopting effective measures to oppose trade and investment protectionism, accelerate the process of establishing a free trade area between the two countries, and enhance cooperation in finance, green growth and other major fields, he said.Morever, the two counties should continue to play positive roles in trilateral cooperation among China, Japan and South Korea, and multilateral collaboration under the framework of the Association of Southeast Asian Nations (ASEAN) plus three, and should also actively take part in building new structure and new order of the regional and global economy and finance.Zhang said he believed that, thanks to joint efforts by the two countries in further deepening mutual trust, enhancing friendship and strengthening cooperation, the strategic cooperative partnership between the two sides would surely achieve greater development.
BEIJING, June 4 (Xinhua) -- China's National Development and Reform Commission (NDRC), the top economic planner, refuted a report on Friday claiming China is facing stagflation risks, arguing the national economic growth might slow slightly but stagflation is not going to occur.The NDRC response followed the release of a domestic report that claimed rising inflation and slowing economic growth would lead to stagflation in China.The NDRC added that the report was inaccurate and likely to cause misunderstandings and confusion, according to a statement released on its website.The statement went on to say growth in China's gross domestic product (GDP) was likely to slow down this year because of a higher comparison base used in the second half of last year, but it would still be one of the world's strongest growth rates and should not be labeled as "stagflation".Further, the NDRC noted that the consumer price index (CPI), a major gauge of China's inflation, was likely to exceed the government's 3-percent growth target in several months, but "there is a foundation to achieve the full-year CPI target of 3 percent" as long as China continued improving macro-regulations, it said.The NDRC statement noted that China would see "stable and comparatively fast economic growth" and "a moderate consumer price increase" this year.China's GDP rose 11.9 percent from a year earlier during the first quarter of this year. The CPI increased 2.4 percent year on year in March while the growth for April accelerated to 2.8 percent, according to the National Bureau of Statistics (NBS).The NBS is scheduled to release May economic data, including the CPI, fixed asset investment and retail sales, on June 11.