5/29/09 Source: Xin Hua

BEIJING — China’s fuel price will remain at current level and will not be increased during the weekend, said an official from the National Development and Reform Commission (NDRC) on Thursday.

The official who declined to be named told Xinhua the country would not increase prices for gasoline and diesel during the three-day Dragon Boat Festival period starting from Thursday.

But he said it is “hard to say” whether the price would be increased in June.

This is in response to a rising speculation that China will increase fuel price on Thursday as the crude oil price staged strong rally in the past few months in the world market.

Crude price topped US$63 per barrel on New York Mercantile Exchange on Thursday. Light, sweet crude for July delivery rose 1 dollar a barrel to settle at US$63.45.

Some analysts predicted that a possible increase in fuel price might be unveiled on May 28, citing the country’s new oil pricing mechanism, which came out in early May.

The new pricing mechanism rules that the country would adjust domestic fuel prices when global crude prices report a daily fluctuation band of more than 4 percent for 22 working days in a row.

Zhong Jian, chief analyst with the oilgas web said although the world price hike has enabled the government to rise domestic fuel price, the country may delay the time line in consideration of big fuel consumers such as transport and agricultural industries.

Dong Xiucheng, China University of Petroleum professor echoed Zhong, saying the government just plays the role of rules maker, instead of a pricing organ. The price is fixed on various factors, Dong said.

5/26/09 Source: Xin Hua

China will fast track its payment system reforms to boost household income, especially those of the medium- and low-income group, and spur consumption, the State Council said on Monday.

The cabinet Monday listed as many as nine steps to increase household income, according to a statement on the reform guidelines posted on its website.

Executives of State-owned enterprises may see their salaries trimmed to narrow the gap between the rich and the poor amid an economic slump that has put pressure on profits and wiped out millions of jobs, according to the statement.

Other measures to encourage spending include an improved social security net, reduced precautionary savings, and increased income for rural and low-income households through fiscal transfers, it said.

Analysts said these measures would help boost consumption, which accounted for just 40 percent of China’s GDP growth in 2008.

“In the last few years the household income growth could not keep pace with the growth of treasury income and that of the national economy. As a result, consumption did not take off, ” said Zhou Tianyong, professor from the Party School of the Central Committee of Communist Party of China.

According to Chang Xiuze, researcher, Academy of Macroeconomy Research, NDRC, China’s labor payments have dropped to 11 percent of the GDP in 2007, compared to 17 percent in 1980.

“The government’s policies to create jobs and raise household income will definitely boost consumption,” said Sun Mingchun, economist, Nomura Securities.

“The real potential for consumption growth is in China’s rural areas. While on an average almost every Chinese urban family owns a washing machine, refrigerator, and air conditioner, less than half of their rural counterparts enjoy such luxuries. But as rural household incomes rise, the demand for consumer durable goods will also go up,” Sun said.

The cabinet yesterday released a reform package that almost tapped all the aspects of a national economy in a bid to lead the country out of the financial crisis.

“This is the most difficult year for the country’s economy and development since we entered the new century. The financial crisis has not bottomed out yet, the speed of the economy has slowed down remarkably, bringing to fore the system contradiction accumulated from the past,” the State Council said in a statement posted on its website.

“This requires us to deepen reforms and open up further,” it said.

5/26/09 Source: Xin Hua

Visiting Kuomintang (KMT) Chairman Wu Poh-hsiung met Beijing Party head Liu Qi Tuesday morning to discuss economic cooperation between Taiwan and the city.

“There will be a wide range of cooperation potential,” said Liu Qi, secretary of the Communist Party of China (CPC) Beijing Municipal Committee, as he introduced to Wu the cooperation and exchanges between Taiwan and Beijing.

The two sides can work together in high-tech industries and manufacturing, such as vehicles, machinery, biotechnology, pharmacy and clean energy, he said. “We sincerely welcome more Taiwan business to invest in Beijing.”

Wu agreed that the two sides of Taiwan Strait should work together to tackle the global downturn as their economies can complement each other.

He appreciated the Beijing government’s placement of great importance on Taiwan businesses and helping them solve problems.

“I hope more Beijing residents will tour Taiwan,” he said.

Wu began his eight-day mainland visit on Monday. Besides Beijing, he will also visit southwestern Chongqing Municipality, the city of Hangzhou in the eastern Zhejiang Province and Nanjing in the eastern Jiangsu Province.

5/26/09 Source: Xin Hua

The State Council, China’s Cabinet, has approved a decision to impose harsh criminal and disciplinary penalties on 169 people held responsible for five major work-related accidents over the past two years, the State Administration of Work Safety (SAWS) announced Tuesday.

SAWS said cases involving 131 people had been handed over to judicial departments for criminal prosecution.

The five accidents included a mine blast in Linfen in north China’s Shanxi Province that killed 105 on Dec. 5, 2007, a train collision in east China on April 28 last year that claimed 72 lives, and a landslide at an unlicensed iron ore tailings facility, also in Linfen, that killed 277 people. These five accidents are profiled below.

COAL MINE BLAST, HONGTONG COUNTY, SHANXI PROVINCE, 2007

The blast occurred at 11:15 p.m. on Dec. 5 at the Xinyao Coal Mine, killing 105 miners and injuring 18 others. Losses were estimated at 42.75 million yuan (about 6 million U.S. dollars).

Authorities said 78 people bore some responsibility for the accident, and 39 were referred to judicial bodies for criminal prosecution. Wang Donghai, the ultimate owner of the mine, and Wang Hongliang, legal representative, were sentenced to life in prison. Miao Yuanli, former vice mayor of Linfen, received a 14-year sentence.

The other 39 received internal disciplinary penalties. Wang Guozheng, director of Shanxi Provincial Construction Department, and Jin Shanzhong, then vice governor of Shanxi Province, were given severe inner party warnings. Li Tiantai, deputy party chief and mayor of Linfen, was given a severe inner party warning and demoted.

Ruizhiyuan Coal Mining Co. Ltd., which owned the coal mine, was fined 185.2 million yuan and closed.

TRAIN COLLISION, SHANDONG PROVINCE, 2008

A high-speed train from Beijing to the coastal city of Qingdao in Shandong Province derailed and struck another train in Zibo’s Zhoucun District on April 28, 2008, leaving 72 dead and another 416 injured. It was the worst train accident in a decade. Losses were estimated at 41.92 million yuan.

An investigation showed the train was running at 131 kilometers per hour at the time of the accident, while the speed limit of that section was 80 km/hr.

Authorities determined that 37 people bore responsibility for the accident. Six people, including Guo Jiguang, vice executive director of the Jinan Railway Bureau, were referred to judicial departments for criminal prosecution.

Thirty-one people received inner party disciplinary punishment or administrative punishment. Chen Gong, head of the Jinan Railway Bureau, was dismissed. Chai Tiemin, then the Party chief of the bureau, was dismissed. Hu Yadong, vice minister of the Railway Ministry, had a serious demerit entered on his record. Liu Zhijun, railway minister, had a demerit entered on his record.

COAL MINE BLAST, SHANXI PROVINCE, 2008

On June 13, 2008, an explosion occurred in a colliery of the Anxin Coal Mining Co. Ltd. in Xiaoyi City, Shanxin Province, which killed 35 people and injured 12 others. One person has never been found. Losses totaled 12.91 million yuan.

Illegal homemade explosives concealed in the colliery tunnel ignited on their own and triggered the blast, according to investigators.

Fifty people were held responsible for the accident, and 26, including Tian Yun, head of the mine and legal representative of Anxin company, were referred to judicial departments for criminal prosecution.

Twenty-four people, including Zhang Zhongsheng, vice mayor of Luliang City, and Zhang Xuguang, mayor of Xiaoyi City, received inner party disciplinary or administrative punishment.

The company was fined 38.46 million yuan and all its illegal gains were confiscated. The company’s business license was revoked and it was ordered to close.

LANDSLIDE, SHANXI PROVINCE, 2008

The collapse of an unlicensed iron ore tailing pond triggered a massive landslide on Sept. 8, 2008 in Xiangfen county of the coal-rich Shanxi Province. The landslide buried an outdoor market near a village of more than 1,000 residents, killing 277 people and injuring 33. Four people were never found. Losses were put at 96.19 million yuan.

Authorities said 113 people had responsibility for the accident. Among those, 51 faced criminal charges and 62 received inner party disciplinary or administrative punishments.

Among those facing charges were Zhang Peiliang, board chairman of the Xinta Mining Ltd. Co., or the owner of the mine; Kang Haiyin, Communist Party chief of Xiangfen County; Li Xuejun, head of Xiangfen County; Liu Shuyong, chief engineer of Shanxi Provincial Land and Resources Bureau, and Su Baosheng, deputy head of Shanxi Provincial Work Safety Supervision Administration.

Xia Zhengui, secretary of Linfen city’s Party committee, was given an inner-party penalty. Liu Zhijie, Linfen’s then mayor, and Zhou Jie, then vice mayor of Linfen, were dismissed. Zhang Genhu, head of Shanxi Provincial Work Safety Supervision Administration, had an internal demerit entered in his record.

MINE FIRE IN HEILONGJIANG PROVINCE, 2008

The fire on Sept. 20, 2008 at Fuhua Coal Mine in Hegang City killed 31 people and caused losses of 15.65 million yuan.

The accident was determined to have been caused by the spontaneous combustion of coal, but 22 people were held responsible for bad management.

Nine people, including Wang Qingyun, an investor in Fuhua Mining Co., Ltd., faced criminal charges.

Thirteen people received disciplinary penalties. Wang Rui, then vice mayor of Hegang, was included, among others.

The company’s business license was suspended and it was forced to close.

5/26/09 Source: China Daily

China will ease government controls this year to stimulate private-sector investment amid an economic slowdown, the top economic planner said in an online statement Monday.

The government would narrow the scope of projects requiring approval “by the maximum extent,” the National Development and Reform Commission said in its 2009 plan on deepening economic reforms.

It said the plan had been approved by the State Council, or Cabinet.

The power of approval will also be transferred to lower government levels to spur private investment.

The government encourages the use of non-governmental capital in such key sectors as petroleum, railways, power generation, telecommunications and public facilities.

China hopes investment and consumer spending will support its slowing economy, as exports have slumped under the impact of the global downturn.

The government announced a stimulus package in November to spend four trillion yuan ($586 billion) by the end of 2010. It has spent 230 billion yuan so far.

05/10/2009  Source: Xin Hua

China Banking Association (CBA) issued the first report of its kind in the country on banking sector’s social responsibility on Sunday.

The report, China Banking Sector Social Responsibility Report, introduces the banking sector’s efforts in promoting public welfare and environmental protection.

The report said the banking sector donated 1.01 billion yuan (148.09 U.S. dollars) on public welfare covering education, culture, sports, health, science and environmental protection in 2008.

The banking sector has provided loans worth of 205.36 billion yuan (30.2 billion U.S. dollars) by March end to earthquake-hit areas for relief and reconstruction, said China Banking Regulatory Commission (CBRC) Saturday.

The banking sector has been giving loans to disadvantaged groups, for example students who have difficulties to continue with their college education, the report said.

Founded in 2000, CBA is a non-governmental organization with 81 full members and 37 associate members.

05/09/2009   Source: People’s Daily

A former senior Beijing city government official was jailed for life Friday for accepting five apartments from development companies in return for helping the planning and building processes.

Xu Shuying, 68, had been using his position as deputy head of Haidian District government from 1995 to 2003 to seek illegal gains, the First Intermediate People’s Court of Beijing found.

Xu was in charge of urban construction when he accepted two apartments worth 2.23 million yuan (327,000 U.S. dollars) from the legal representative of a property company called Taiyue and two more from other companies.

He also demanded an apartment as a bribe from another company. The total value of the five homes exceeded 6.29 million yuan (922,300 U.S. dollars), the court heard.

Disciplinary authorities began investigating Xu in March last year after being tipped off that he had accepted an apartment from Taiyue. Xu then confessed to accepting the other four apartments, the court heard.

Xu was told he was being treated with leniency because he confessed to the crimes and all illegal gains had been seized.

Xu had no plan to appeal against the first-instance ruling, said a court official.