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GENEVA -- China has reached understanding with the United States and Mexico on their alleged trade subsidy measures, sparing a WTO panel ruling on the case, the Chinese WTO mission said here on Thursday.Chinese Ambassador Sun Zhenyu signed respective memorandums of understanding with his US and Mexican counterparts "regarding certain measures granting refunds, reductions or exemptions from taxes or other payments" at the WTO headquarters on Thursday, the mission said in a statement.In the MOUs, China made it clear to the United States and Mexico that "the policy of exemption for certain foreign-invested enterprises from payments to the State for worker allowances is no longer operative."Besides, the policy of value-added tax (VAT) refund to enterprises for the purchase of domestically produced equipment does not constitute prohibited subsidies as provided by relevant provisions of WTO agreements."Other preferential policies on income tax pertinent to the disputes have been repealed or will be repealed along with the implementation of the new Enterprise Income Tax Law of China," the statement added.According to the Chinese mission, the MOUs will be notified to the WTO as mutually acceptable solutions to the above-mentioned dispute in accordance with the Dispute Settlement Understanding of the world trade body.The United States filed the case to the WTO in February and later was joined by Mexico. The two countries alleged that China was using tax breaks and other incentives to "subsidize" its exports, which might violate WTO regulations.A WTO panel was established in August to investigate the case, following failed consultations between the three sides.But the three sides finally reached understanding on the dispute through continued discussions.

The Board of Airport Authority Hong Kong awarded a franchise to building a new cargo terminal at Hong Kong International Airport (HKIA) to a subsidiary of Cathay Pacific Airways Limited here Tuesday.     According to the contract, Cathay Pacific Services Limited, a subsidiary of the parent airways, will design, construct and operate the 10-hectare new cargo terminal during the non-exclusive,20-year franchise.     The new terminal and recently completed enhancements to the cargo apron, taxiways and aircraft stands will equip HKIA to meet future demand for cargo services and to maintain its position as the region's premier air cargo hub.     "The new cargo terminal will reinforce the competitiveness of HKIA as a regional and international air cargo hub." Airport Authority Chief Executive Officer Stanley Hui said, adding "it will provide additional choices for airlines, shippers and freight forwarders.     "I believe it will bring substantial economic benefits, in the form of new jobs and business opportunities, to Hong Kong," he said.     Scheduled to open in the second half of 2011, the new terminal will have an annual capacity of about 2.6 million tons and increase the airport's total general and express cargo handling capacity to 7.4 million tons per annum.     According to Cathay Pacific Services, construction of the new terminal will create over 400 jobs. When it starts operation, the facility will employ more than 1,700 people.     The decision to build a new cargo terminal was made after the Airport Authority held extensive consultations with Hong Kong's air cargo and logistics industry.     In December 2006, the Airport Authority called for pre- qualification proposals, which was followed by invitation for submission of business plans. The Airport Authority assessed the business plans and decided to award the franchise to Cathay Pacific Services as a result of an open and competitive tender process.     The Airport Authority also invited the Independent Commission Against Corruption as an independent advisor to oversee the process.     Driven by the rapid expansion of the Chinese mainland's economy and robust global trade, cargo throughput at HKIA rose 4.5 percent in 2007, to 3.74 million tons. The air cargo industry handled over1.9 trillion HK dollars (243.6 billion US dollars) worth of goods in 2007, accounting 35 percent of Hong Kong's total external trade.     HKIA has remained the world's busiest international cargo airport for the 11th consecutive year.

The Chinese-African People's Friendship Association (CAPFA) will nominate 10 Africans Who Have Deeply Moved Chinese People next month, in a moved aimed at cementing civilian diplomacy between the two sides.The 10 candidates are expected to be unveiled at the next Forum on China-Africa Cooperation (FCAC) late next year.Chen Haosu"CAPFA's recognition will benefit both peoples by enhancing mutual understanding and trust," Chen Haosu, president of the Chinese People's Association for Friendship with Foreign Countries, said.The awards will go to Africans "who have made great contributions to bilateral ties", Wang Tong, an representative of the CAPFA, said, adding that the association is identifying criteria of eligible candidates.The first round of nominations will involve all 131 councilors of the CAPFA, Liu Hongmin, also from the association, said."Our councilors include big Chinese entrepreneurs such as Huawei Technologies and ZTE, among others," he said. "They are the most suitable to put forward nominees because of their significant investments in Africa."Liu said the 10 winners will be just one part of the second China-Africa Friendship Award. The other part will be the 10 Chinese Who Have Deeply Moved the African People. This will be the second time such awards have been givenThe first 10 winners - which included doctors, journalists, scholars and politicians - were announced in Beijing during the FCAC in November 2006."These awards reflect sincere friendship and intense people-to-people communication, though China and Africa are distant from each other," Dai Yan, a former councilor in Ghana, said."But both peoples still have a long way to go to truly understand each other because of cultural differences," he said. More African people have traveled to China as bilateral ties have developed over the past years.The number of Africans coming to Guangzhou, capital of Guangdong province, has increased by 30 percent every year since 2003. Most of these newcomers are traders.The city now has about 20,000 African residents, Huang Shiding, of the Guangzhou Academy of Social Sciences, estimated.Beyond the world of business, "500-600 African students are studying in universities and colleges in Beijing," Wang said.Meanwhile, on the other side of the globe, a growing number of Chinese people have settled down in Africa.In one reflection of the impact they are making, people in Nigeria crowned tribal chieftains from China in 2001 and 2007.

SHANGHAI: Preliminary investigations showed improper maintenance work had caused a Shanghai gas station explosion on Saturday, which saw four killed and 40 injured.A team of officials from related government agencies is investigating the blast at the China National Petroleum Corporation (CNPC) outlet in Pudong District, reported the Xinmin Evening News Sunday.The station had earlier been suspended on October 11 for safety concerns and was scheduled for reopening Sunday.CNPC did not respond to media queries on the explosion.Most of those injured from the incident have been discharged from hospital.Two of the 29 blast victims sent to Punan Hospital died while 26 were discharged Sunday morning.A 49-year-old woman who was hit on the head by a piece of blast debris is still under observation at the hospital.She was said to have been in her apartment close to the station when the explosion shattered her window.The 13 other injured who were sent for treatment at the Pudong branch of Renji Hospital have been discharged.The explosion on Saturday occurred at 7:50 am in the junction of South Yanggao and Pusan roads.Two maintenance workers on the site were killed instantly. Witnesses said one of the workers was blown five stories high before landing nearby.A woman who was cycling 1 km away from the station was hit by a piece of blast debris and died in hospital.A motorcyclist, later identified as Wang Dong from Anhui Province, also died after debris hit him on the head.He had taken off his helmet to answer a call on his mobile phone.The Shanghai Evening News said Sunday that visits to several gas stations in the area found unsafe practices.Drivers lining up for gas smoked and used mobile phones without being stopped by station employees.The blast also damaged a bus that had stopped near the station and injured passengers on board. A convenience store, motel and several other nearby buildings were also hit.Traffic disrupted by the explosion resumed Sunday.

Rural infrastructure and social services have improved remarkably in recent years, thanks to government efforts to boost the countryside, the nation's latest agriculture census has revealed.The National Bureau of Statistics yesterday released its first report based on the 2006 census, which is designed to reflect the overall development of rural areas and the agriculture sector, as well as the living standards of rural residents.The percentage of villages which had access to road links, telephone services, electricity and TV broadcasting by the end of 2006 were 95.5 percent, 97.6 percent, 98.7 percent and 97.6 percent, according to the survey.For every 100 households in rural areas, there were 87.3 television sets, 51.9 fixed-line telephones, 69.8 mobile phones, 2.2 computers, 38.2 motorbikes and 3.4 automobiles. Meanwhile, 74.3 percent of the villages had clinics; and at the township level, 98.8 percent of towns had hospitals, and 66.6 percent, nursing homes for the elderly."The figures show the government's increased spending to improve rural livelihoods has started to pay off," said Du Zhixiong, a researcher at the Rural Development Institute of the Chinese Academy of Social Sciences (CASS).The central government has launched a slew of initiatives in the past few years to speed up the development of the countryside, which has lagged behind urban areas over the years.The aim is not only to bridge the income gap between urban and rural areas, but also improve the social services in the countryside. Last year, the per capita income of rural residents averaged 4,140 yuan (0), about a third of earned by urban residents.The central government plans to increase its budget for rural investment by more than a fourth to 520 billion yuan (.8 billion) this year, Chen Xiwen, director of the office of the central leading group on rural work, told Xinhua News Agency in an interview.Government spending on rural projects amounted to 420 billion yuan (.8 billion) in 2007 and 340 billion yuan (.6 billion) in 2006."The survey also reveals areas that should be further improved," said Du from the Chinese Academy of Social Sciences.At the end of 2006, only 48.6 percent rural residents had access to tap water; and only 15.8 percent of villages had garbage treatment facilities.The survey also found China had 530 million rural laborers at the end of 2006. Of them, 70 percent were engaged in agriculture work such as farming, forestry, livestock breeding, fishing and related services.That was nearly 5 percentage points down from the end of 1996, as more and more have moved to work in local factories or cities.There are now 130 million migrant workers from the countryside, about a fourth of the rural labor force.The latest census, the second of its kind, was conducted among more than 650,000 villages and nearly 230 million households. The first national agriculture survey was a decade ago.The NBS will release five other reports based on the 2006 survey in the coming weeks, which will cover issues such as the living conditions of rural residents and the environment of rural communities.The focus of the five reports will be on:The current situation of the agriculture sector and agriculture productionRural infrastructure and social servicesLiving standards of rural residentsRural labor force and employmentGeographic distribution and categorization of arable land.