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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.

BEIJING -- For the first time in its history, the Communist Party of China (CPC) has mentioned the word "religion" in an amendment to its Constitution adopted on Sunday at the closing session of the 17th CPC National Congress.To incorporate into its Constitution the principles and policies the Party has formulated for guiding efforts to strengthen the work related to ethnic and religious affairs, among others, is conducive to their full implementation and getting better results in the Party's work in this area, said a resolution on the amendment to the Constitution.It said the insertion has been made in light of the new circumstances and tasks.The CPC is atheistic but allows freedom of religious beliefs. China is home to 100 million religious faithful, largely Buddhists, Taoists, Christians, Catholics and Islamites"The Party's secret in handling well China's religious issues lies in its principles and policies," said Ye Xiaowen, director of the State Administration of Religious Affairs. "Their insertion in the Party Constitution shows the Party is sincere, and capable, of its implementation of policies on the freedom of religious beliefs. "He said religious problems are reported in many parts of the world. "But in China we enjoy peace and quiet because we have the established policies and principles."With the new elaboration on religious work, Ye said the Party is determined to enhance the active role of the religious circle and faithful in boosting social and economic development."I learned of the amendment on the Internet and was inspired," said Living Buddha Dainzin Qoizha in the Shannan Prefecture of southwest China's Tibet Autonomous Region. He's been watching the week-long Party congress on the Internet.Dainzin Qoizha is a government employee in Shannan. More than half of his colleagues are CPC members."I'm on very good terms with them," he said. "As a non- Communist, I'm in charge of ethnic and religious work. The prefecture's Party committee is very supportive."Hao Peng, vice Party chief in Tibet, described the relations between the Party and the religious faithful as "united, cooperative and mutual respectful".Tibet currently has more than 1,700 religious sites, 46,000 monks and nuns and more than 30 living Buddhas whose reincarnation has been recognized by the central or regional governments.At least 600 Tibetan Buddhist faithful are working at local legislatures, political advisory bodies, administrations of religious affairs and state-owned businesses and institutions.The CPC's tenet of building socialism with Chinese characteristics, featuring prosperity, democracy, cultural advancement and harmony, reflect the common aspirations of Tibet's religious faithful, said Zhukang Tubdankezhub, president of the Tibetan branch of the Buddhist Association of China.As the host country of the 2008 Summer Olympic Games, China has pledged to offer religious services for foreigners arriving for the Games."A large number of religious faithful will be arriving for the Games," Ye Xiaowen told reporters at a news conference on the sidelines of the 17th Party congress.He said China is working on religious facilities at its Olympic venues with the help of the International Olympic Committee and referring to the practices at previous Games. "Our religious services will be up to previous standards."Ye also dismissed allegations that China restricted the printing and sale of Bibles, which he said receive state subsidies and other preferential policies.China, with 16 million Protestant Christians, has printed 42 million Bibles, he said. 

Viruses wreaked havoc on at least 1 million personal computers during the weeklong National Day holiday, according to Jiangmin Co, a leading Chinese antivirus company.The company's monitoring system detected that more than 118,000 computers crashed on October 6 alone."Viruses have been extremely active during the long vacation because more people chose to stay at home and surf the Internet, shopping online or playing online games," He Gongdao, an antivirus expert at Jiangmin, said on Monday."More than 24,000 types of viruses were detected during the week," he said.He said computer users should be more aware of viruses that could be passed on through movable disks.Another antivirus company, Kingsoft, alerted the online community to a new virus it dubbed the "ultimate killer to antivirus software".The virus, a kind of Trojan, is capable of hijacking all kinds of antivirus software when it successfully attacks a computer."It will also automatically search the keywords, including 'antivirus, Kingsoft and Kaspersky', and coercively close the programs, Li Tiejun, an antivirus software engineer of Kingsoft, said."The virus has been supported and spread by a group of people who have developed a systematic and standardized business operation to make profit," Li said. Virus controllers could detect the IP addresses of each computer, he added.The new virus, which affected about 40,000 computers a day, will remain a critical threat to many computer users even after the holiday, Li said.According to the latest survey conducted by the Ministry of Public Security, China has encountered a rising Internet security problem over the past three years, mainly triggered by a growing number of profit-driven computer virus writers, hackers and illegal traders.Some 65.7 percent of 15,000 companies polled had suffered Internet security problems from May last year to May this year, 11.7 percentage points higher than before.

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BEIJING -- China's central bank admitted on Wednesday that the country is coming under increasing pressure from price hikes, and acknowledged inflation risks are "worthy of attention".The People's Bank of China said in its second-quarter monetary report published on Wednesday that the current rising prices were not solely caused by accidental and temporary factors, adding that inflation risks were on the rise.It warned that the price hikes of food products could spread to other consumer products.The report identified four reasons behind the increasing risk of inflation.It said prices for grain and meat products would not fall in the short term and uncertainties over the autumn harvest were aggravated by the ongoing drought.Meanwhile, the demand for grain is increasing from both the public and the bio-fuel industry.The meat prices would probably continue to rise in the long term owing to the rising feeding costs and the short supply, which would not be replenished in the short term due to the breeding cycle of pigs, and the price hikes of meat could easily spread to other food products, the report said.Prices of energy and resources are under pressure as the world petroleum price has climbed to an even higher level and the domestic pricing reform of resources and the country's environmental protection efforts would also push the prices higher, it said.The report also said labor costs were rising which would eventually raise the prices of consumer products.People's anticipation of inflation had been enhanced, and it would put further pressure on price hikes, according to the report.A survey by the central bank in the second quarter showed that 40.2 percent of those interviewed, the second highest record since 1999, said they were worried about inflation.China's consumer price index (CPI) rose 3.2 percent in the first half of this year, and the growth rate was 1.9 percentage points higher than the year-earlier level.Price hike for foodstuffs, mainly grain, meat and fowl and eggs, contributed significantly to the rise. Statistics show that foodstuff prices rose 7.6 percent, with grain price up 6.4 percent, egg price up 27.9 percent and prices for meat and fowl as well as related products up 20.7 percent in the first half.

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."

BEIJING - The crab trade across the Taiwan Strait has slowed in what should be its peak season due to picky quarantine standards put forward by the Taiwan authorities, said a Chinese mainland official here Wednesday."We hope the related non-governmental organizations from both sides will carry on negotiations so that Taiwan people can enjoy this delicacy at the right time," said Li Weiyi, spokesman of the Taiwan Affairs Office of the State Council.Fresh crabs, especially those bred in East China's Jiangsu Province, have become a traditional and popular mid-autumn dish and have sold well in Taiwan.The two sides had reached an agreement on quarantine standards of crabs in July, but in August the Taiwan authorities submitted new standards requiring residues of all drugs to be undetectable, which was too picky and impractical, Li said.The mainland had exported quality and safe food, he said, adding that 99 percent of food exported to Japan and the European Union met their standards."We do expect the two sides to show sincerity and settle this problem for the benefit of consumers," he said. "We have noticed that a certain group in Taiwan is trying to discredit mainland foods. Such politically driven action will greatly harm normal trade across the Strait."In the first eight months of this year, the mainland has found 27 consignments of unqualified food imported from Taiwan. "We handled them according to regulations, but did not exaggerate the situation," Li said.He said the mainland would continue encouraging imports of produce from Taiwan.A 30-member purchasing group from the mainland visited Taiwan this month and signed an initial agreement to buy 2,000 tons of local fruits."We will support more farm produce importers and trade organizations in visiting Taiwan," Li said.Meanwhile, he urged the Taiwan authorities to speed up the talks on opening Taiwan to mainland tourists.Tourism organizations from the two sides had held six rounds of talks on technical issues."The two sides have developed common understanding, but a number of problems remained unresolved," Li said.After the fifth round of talks, the mainland put forward a set of practical solutions, but the Taiwan authorities had made no response for months, he said.

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The government has earmarked 6 billion yuan (4 million) to pay for energy conservation projects to be launched before the end of this year, a senior official from the top economic planner said Monday."The special funds will support 10 major energy-saving projects, such as reducing the use of petroleum and developing petroleum substitutes and green lighting technology. It is hoped these developments will help the country use less energy," Xie Zhenhua, vice-minister of National Development and Reform Commission (NDRC), said at the China Energy Saving and Emission Reduction Forum 2007."Incentives have been devised to encourage enterprises to save energy. Enterprises will receive financial aid according to the energy they can save while reducing emissions."Xie said the central government has also set aside an additional 2 billion yuan to compensate local governments and enterprises for eliminating excess production capacity in the latter half of this year.The government has set a target of reducing energy consumption per unit of GDP by 20 percent between 2006 and 2010, with annual cuts of 4 percent. However, the decrease was only 1.33 percent last year compared with 2005."If we cannot reverse this situation in a timely manner, it will be difficult to meet this year's energy-saving target, which could have an unfavorable effect on the energy-saving and emissions-reduction targets in the 11th Five-Year Plan," Xie said.To prevent this from happening, the government will accelerate the elimination of obsolete production capacity in 13 sectors.He also said the NDRC and the State Environmental Protection Administration will soon organize a conference on the recycling economy in Chongqing.The government will guide the price of power from small thermal power plants, and raise excise taxes on resource-consuming products such as refined oil, automobiles and solid wood floors.

Donald Tsang wins in HK Chief election(Xinhua/Reuters)Updated: 2007-03-25 14:27 Hong Kong Chief Executive Donald Tsang and his wife Selina stand on a bus as they wave to thank local residents at a polling station after winning the election in Hong Kong March 25, 2007. [Reuters]Hong Kong Chief Executive Donald Tsang waves after winning the chief executive election, at the polling station in Hong Kong March 25, 2007. [Xinhua]

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Four-yuan Scheme What can a part-time Chinese employee of McDonald's afford by his hourly pay? Only two small ice creams, which are valued at four yuan (US50cents). A McDonald's outlet. [File]American fast-food giants McDonald's and Kentucky Fried Chicken (KFC) are being bombarded for their work contracts which offer their part-time Chinese employees just four yuan per hour, well under the state requirement, state media reported. An employee is entitled to no less than 4.3 yuan per work hour, said a rule released by the Guangzhou city government last November. The hourly pay averages 7.5 yuan in the city. An unnamed source in Guangzhou told the New Express newspaper that the contract violated the legal rights of employees. "Once administrative departments discover acts of violations, officials will order these enterprises to revamp and compensate the employers for their losses," the source told the Guangzhou-based paper. "If the problem is so grave that a punishment will be handed out," the source said without giving details. The source also cast doubts on the probation system implemented by the fast-food giants. "Part-time employees don't need to undergo a one-month probation period." McDonald's and KFC have nearly 3,000 outlets all over China and a work force of nearly 200,000, according to a state media report. Zhu Yongping, a Guangzhou lawyer, has begun to move for the rights of employees. He told the paper that the work contracts have 'seriously violated' the legal rights of employees. A Lin, a McDonald's employee in Guangzhou, regarded McDonald's as a respectable foreign-funded enterprise before starting to work there. But the working experience has changed her mind. "I don't have enough rest. It seems that I was overly exploited." Cui Minghuan, Manager of KFC'S Guangdong market, refuted the claims of rights violations, saying the current rule of the minimum hourly rates of pay for the non-full-time employees implemented in the province is not applicable to the part-time employees working for KFC. "KFC does not breach relevant laws in China." Cui said these part-time employees are neither full-time workers nor non-full-time workers. "Their hourly rates of pay cannot be measured by the rule. An unnamed offical with the Provincial Department of Labor and Social Security said Cui's words are ridiculous. "So what kinds of workers they are on earth? " The official said the rule is applied to these part-time employees. Mcdonald said in a written statement that "it is always committed to relevant laws and regulations in China." Central Government Actions The report came just days after Chinese Premier Wen Jiabao, in his work report to the congress in early March, called for more efforts to implement the minimum hourly wage system in a bid to protect the workers' rights. The minimum wage system aims to protect the rights of Chinese employees. For example, Bejing has set a minimum wage about 550 yuan per month, while the economic hub Shanghai has a minimum wage about 650 yuan. The central government has beefed up efforts to protect the rights of its huge crowd of employees to quell any likelihood of unrest and maintain social stability. China is planning to adopt an unemployment law that aims to build an unemployment benefit system. The draft law is aiming at promoting employment around the country. The law states that the government will implement new policies, such as boosting professional training and increasing financial investment in employment promotion. As discrimination turns rife in China, the draft law contains a clause on anti-discrimination in an effort to provide employment equality in the country. The clause states that discrimination against job seekers with respect to their background, ethnicity, gender, religious beliefs, age, or physical disability, will be prohibited. The government is also taking actions to set up trade unions in foreign-funded enterprises in China. Up to date, about 26 percent of China's 150,000 overseas-funded enterprises have established trade unions, with a total membership of 4.29 million, previous media report said. However, McDonald's and KFC have not set up unions so far.

BEIJING -- China will continue to spend more on education next year and spread the free nine-year compulsory education to urban children, said finance minister Xie Xuren.The government would continue to improve the funding system to guarantee free nine-year compulsory education currently enjoyed by 150 million rural children, while spreading it to their urban counterparts next year, Xie told an annual conference of the Ministry of Finance in BeijingStarting from the spring term, China would increase the funding for free textbooks used for the national compulsory courses, and the local governments would provide more money for free textbooks for local compulsory courses, he said. Local governments would also provide scholarships to cover the living costs of boarding students from poor families. The central government would provide half of the education funding for areas in Central and West China, while provincial governments in those areas would cover the rest of the costs.Local governments in East China would provide all education fees with some supplementary funding from the central government.Xie said the government would issue new standards for per capita expenditure of students in primary and middle schools, and put those standards into effect within the next two years.He said the allowance for maintenance and refurbishing of rural schools in Central and West China would also be raised with special financial support to high-altitude and cold areas.In addition, the government would continue free education for students taking courses for teaching careers at normal schools and provide scholarships for poor undergraduates and students at vocational schools.According to Xie, the first 11 months saw  557.8 billion yuan (about 74.3 billion US dollars) of fiscal expenditure used for education, up 32.7 percent compared with the same period last year.As a result of the implementation of scholarships for the poor, about four million college students and 16 million secondary vocational school students had benefited.