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BEIJING -- China will gradually scrap restrictions on the destination, stock ownership and business scope of foreign investment in the service sector, a senior economic planner said in Beijing on Saturday.Zhang Mao, vice minister of the National Development and Reform Commission (NDRC), said the country would stick to its opening-up policy and promote a "quantity-to-quality transformation in attracting foreign investment".He added existing restrictions on foreign investment in key industries concerning China's national security and its citizens livelihood remained unchanged."The point (of the transformation) is to absorb advanced technologies and management skills from foreign countries," he said. "Foreign investment companies are expected play a positive role in this regard."Speaking at a multinational CEO roundtable on Saturday, he said foreign investment would be encouraged to enter high-tech, equipment and new material manufacturing and logistics businesses. He added the central and western hinterlands were open for foreign investment with more incentives.But Zhang stressed that foreign investors were restricted from setting up businesses for export only in China and banned from creating polluting projects and those that rely on consuming too much energy and resources.Chinese authorities would also help to create a sound investment environment by simplifying examination and approval procedures and steadily accelerating the free exchange of the country's currency under the capital account.The government would establish a cross-department supervision mechanism over foreign mergers and acquisitions in effort to safeguard national economic security, he said.Assistant Minister of Commerce Chong Quan said multinationals were encouraged to strengthen cooperation with their Chinese partners in promoting regional development, technological innovation, outsourcing services, product safety and exercising corporate social responsibility.Chong said his ministry had named 10 cities where "conditions are mature", the "base cities" of outsourcing services. They are Beijing, Dalian, Xi'an, Shenzhen, Chengdu, Wuhan, Nanjing, Shanghai, Tianjin and Jinan.By 2010, China's export volume of outsourcing services was expected to double that in 2005, he added. New foreign investment guideOn November 7, China released a new guide of industries open to foreign investment and foreign companies. It also listed those that were banned or restricted from entering the Chinese market.Foreign investors are invited to join efforts to promote the recycling economy, clean production, renewable energy utilization and ecological environment protection but prohibited from exploiting "important and non-renewable" mineral resources.The new guide replaced the 2004 version and takes effect on December 1.Since 1997, China has revised the industry guide for foreign investors on three occasions in hope of channeling foreign investment to serve the needs of industrial restructuring.The current policies to attract foreign investment were made 28 years ago when China was desperate for investment and foreign currency.However, the country has been the largest recipient of foreign investment among all developing nations for 15 consecutive years. A 2004 report to the UN Conference on Trade and Development noted the country attracted a per capita foreign investment of , much lower than the 4 per person that was invested in developed countries and below the world average of 7.Product safetyIn his speech at the roundtable, the assistant minister stressed that China has taken a highly responsible attitude towards product safety, urging multinationals to join the nation's efforts to guarantee product safety."Made in China" is a fruit of international endeavor because more than 50 percent of China's exports come from the processing trade sector, said Chong, "the exported products were manufactured in line with foreign standards and foreign customers' requirements," he said.Meanwhile, products made by foreign invested companies in China comprised a majority of the nation's exports, accounting for 58 percent of the total export volume, said Chong."China should not be the only one to blame for defective products," said the assistant minister, "product safety is a serious matter for the world as a whole and multinationals bear key responsibilities in coping with the challenge,"He said multinationals should keep a close watch on design, inspection and sales of their products and make sure their raw materials are up to safety standards.In the wake of headline food scandals, China's cabinet approved in principle a draft law on food safety to address the "weak points" in food production, processing, delivery, storage and sales at the end of October.The draft law proposed a food safety risk supervision and evaluation mechanism to provide a "key basis" for constituting food safety standards and food born disease control measures. The mechanism demanded a "unified, timely, objective and accurate" disclosure of emergency information.

GUANGZHOU: Doctors in this city have developed a new birth control surgery for men that could be made available to the public starting next year.The method involves making a small incision along the testicle. Doctors then place a tiny tube, about the size of a match, into the opening.The tube functions as a filter that blocks sperm, Wu Weixiong, the director of Guangzhou Family Planning Technology Center, said.The surgery has already been patented, and the health department will promote it as soon as it is approved by the National Food and Drug Administration, Zhu Jiaming, the vice-president of the Guangzhou Sexology Association, said.He expects approval to be granted by next year."The success rate for this form of birth control is 97 percent," he said.The tube can be removed without negatively affecting a man's sexual health, he said.Wu said the operation takes just 10 minutes. However, it is very difficult and requires highly skilled doctors.He said only a few hospitals have the staff and facilities necessary to carry out the procedure. However, training courses will soon be made available to local doctors.Wu said he believed enough facilities and manpower would be available to handle the demand for such operations by the time the procedure is officially approved."The success rate of the operation is almost 100 percent," Duan Jianhua, an official of Guangzhou population and family planning commission, said.Research on the operation started four years ago in Beijing. It was led by the science and technology institute of the National Population and Family Planning Commission and Guangzhou family planning science and technology institute.Wu said the technique was developed through more than 1,600 clinical trials all over the country. More than 500 men in Qingyuan, a city in Guangdong Province, have already had the operation. All the trials were successful and none of the subjects has experienced any side effects.Zhu Jiaming said the operation costs just a few thousand yuan, which is affordable for most people in China."When the technique is available, couples will have one more option for birth control, and married women do not have to install an intrauterine device (IUD) anymore," Zhu said.The public seems ready."I welcome this technique. It makes me feel women are more respected by society than before," Liu Jun, a woman in Guangzhou, said.A survey by the Guangzhou-based New Express Daily found that about 60 percent of Guangzhou residents welcomed the surgery and supported its promotion.

China's quality watchdog cracked 23,000 cases of fake and low-quality food from December 2006 to May 2007, involving 200 million yuan (26 million U.S. dollars). A total of 180 food manufacturers were shut down during the six months for making substandard food or using unedible materials for food production, said Han Yi, a senior official with the General Administration of Quality Supervision, Inspection and Quarantine, at a press conference on Tuesday. The administration launched the nationwide fight against illegal food production and processing in December last year, mainly targeting food makers in the countryside and food for everyday consumption, including baby milk powder, rice, wheat powder and meat products. In 2006, China's industrial and commercial authorities ferreted out 68,000 fake food cases and withdrew 15,500 tons of substandard food from the market, according to the State Administration for Industry and Commerce. Forty-eight cases were handed over to judicial departments.

Chinese President Hu Jintao on Monday launched a campaign to rid the country's sprawling Internet of "unhealthy" content, state television reported. Development and administration of Internet culture must stick to the direction of socialist advanced culture, adhere to correct propaganda guidance," said a summary of the meeting read on the news broadcast. "Internet cultural units must conscientiously take on the responsibility of encouraging development of a system of core socialist values." In January, President Hu made a similar call to "purify" it, and there have been many such calls before. "Consolidate the guiding status of Marxism in the ideological sphere," the party meeting urged, calling for more Marxist education on the Internet. In 2006, China's Internet users grew by 26 million, or 23.4 percent, year on year, to reach 137 million, Chinese authorities have estimated. That lucrative market has attracted big investors such as Google and Yahoo. Authorities have also launched repeated crackdowns on pornography and salacious content. The latest campaign against porn and "rumor-spreading" was announced earlier this month. The meeting also announced that schools and sports groups would be encouraged to use healthy competition as a way to shape youth, the report said. "Sports plays an irreplaceable role in the formation of young people's thinking and character, mental development and aesthetic formation," the meeting declared.

BEIJING -- Strong economic growth means that fiscal revenues for 2007 will far exceed forecasts made at the beginning of the year, according to a report by the State Council to the top legislature here on Saturday .The extra money will be used to improve people's livelihood with education, health care, social security on top of the government work agenda, the report said.Central government fiscal revenue is expected to total 2.84 trillion yuan (about 389.5 billion U.S. dollars), or 401.1 billion yuan above the budget forecast.In the first 11 months, central government fiscal revenue was 2.68 trillion yuan, up 37 percent over the same period last year, statistics from the Ministry of Finance showed.Local governments will get a windfall too, with their extra fiscal revenue expected to reach 300 billion yuan, the report said."The huge extra fiscal revenue reflects China's stable, rapid economic growth," the report said.By the end of the third quarter, most major economic indicators had already outstripped 2007 targets: industrial output, total fixed asset investment, retail sales, realized company profits and foreign trade.Tax revenues derived from those activities also expanded rapidly in the first nine months. Value-added tax, import tax and individual income tax collections rose 9.9, 10.8 and 12.9 percentage points, respectively.Corporate income tax, business tax and deed tax collections were up 39.2 percent, 29.7 percent and 38.4 percent year-on-year, respectively. Those gains were 24.2 percentage points, 16.7 percentage points and 28.9 percentage points above target, respectively.According to the State Council, the extra fiscal revenue will be used to improve people's livelihood with education, health care, social security to top the agenda.The central government will use 40 billion yuan to subsidize farmers to raise fine breeds of livestock and plant improved variety of crops, and to renovate agriculture infrastructure such as roads, bridges and reservoirs, the report said.The central government will give 21 billion yuan to subsidize the compulsory education, 40 billion yuan to social security, 31.8 billion yuan to medical care, 29 billion yuan to scientific and technological development and 1.1 billion yuan for cultural causes, the report said.The central government will use the extra revenue to offset fiscal deficit by 45 billion yuan and keep the deficit of this year at 200 billion yuan.The State Council required the local governments to focus the use of their 300 billion extra revenue on improving people's livelihood too.