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BEIJING, Feb. 3 (Xinhua) -- Chinese economists are again concerned about the value of the country's dollar-denominated assets after the U.S. government's budget plan unveiled Monday forecast a record deficit for 2010.The economists are worried that, if the Congress approved the budget plan, the U.S. federal government will issue more bonds and print more money to finance the deficit, which may prompt dollar depreciation. Dollar depreciation erodes the value of China's holdings of dollar-denominated assets.The same fears took hold almost one year ago when the U.S. government said it would issue up to 2.56 trillion U.S. dollars of treasury bond debt to stimulate the economy to get through the recession.This time the budget deficit is larger. The Obama administration on Monday proposed a budget of 3.83 trillion U.S. dollars for fiscal year 2011 with a forecast deficit of 1.56 trillion U.S. dollars in 2010.The planned fiscal deficit is 10.6 percent of gross domestic product (GDP) - up from a 9.9 percent share in 2009 - the largest deficit as measured against GDP since the second world war.He Maochun, director of the Center for Economic Diplomacy Studies at Tsinghua University, said the deficit would be financed by those holding U.S. dollar-denominated assets with the main channel to transfer the risks caused by the deficit being the issuance of U.S. treasury bonds.The U.S. is already in enormous debt, with Treasury data showing public debt topping 12 trillion U.S. dollars in November last year, the highest ever.To pay for the deficit, the U.S. federal government will borrow 392 billion dollars in the January to March quarter of 2010, according to a Treasury Department statement released Monday. It will then issue 268 billion U.S. dollars of treasury bonds in the second quarter.Experts said the record deficit suggests the federal reserve will continue to flood more money into the market. The massive issuance of treasury bonds, the large fiscal deficit and the printing of the dollar will prompt further declines in the value of dollar, they said.In 2009, the greenback depreciated against major currencies by 8.5 percent, according to China's State Administration of Foreign Exchange (SAFE).China is the biggest foreign holder of the U.S. government debt. As of the end of November last year, China held 789.6 billion U.S. dollars of U.S. treasury bonds. Moreover, more than 60 percent of China's 2.399 trillion U.S. dollar stockpile of foreign exchange reserves - the world's largest - is in dollars.Cao Honghui, director of the Financial Market Research Office of the Chinese Academy of Social Sciences (CASS), a government think tank, said the massive U.S. deficit spending and near-zero interest rates would erode the value of U.S. bonds.The U.S. government should not transfer the problems of enormous debt to other nations or regions that are creditors like China, he added.The SAFE said in a statement in December 2009 that China would diversify its foreign exchange reserve holdings - both currencies and securities - to reduce risk.Liu Yuhui, an economist with the CASS, said late last month China may scale back its purchases of U.S. debt on concern the dollar will decline.China trimmed its holdings of U.S. government debt by 9.3 billion U.S. dollars in November last year - the biggest cut in five months - taking them down to 789.6 billion U.S. dollars.Ding Zhijie, associate dean at the finance school at the University of International Business and Economics, said China had been securing its investment value by using its foreign exchange reserves for imports and acquisition in 2009."More reserves should be used for investment in materials and resources, which can reduce the risk," he said, adding that he expects the purchasing spree to continue this year.The deficit is expected to ease slightly to 1.3 trillion U.S. dollars in 2011, but that still represents 8.3 percent of 2011 GDP.But Ding said it is necessary for the U.S. to keep its powerful fiscal stimulus policy in place, as the economic recovery is fragile and remains uncertain.The U.S. economy shrank 2.4 percent in 2009, but the U.S. government is projecting GDP growth of 2.7 percent in 2010 and an unemployment rate average of 10 percent.Zuo Xiaolei, chief economist at China Galaxy Securities, said the U.S. had no choice but to rely on massive government spending to ensure the economic recovery.The budget deficit will pump money into the economy and generate jobs, which in turn will generate greater tax revenue that can help pay off the debt, Zuo said."But there is still a risk the policy will fail and that debt will grow beyond the government's ability to pay," in which case the entire global recovery will be threatened.

BEIJING, Feb. 6 (Xinhua) -- The Chinese Central Government has sent eight inspection working groups to 16 provincial areas nationwide to prevent the melamine-tainted milk powder, which killed at least six in 2008, from being reclaimed illegally in producing milk products.Leftovers of milk powder contaminated by melamine were sealed in 2008 and required to be destroyed, but some might have been used as raw materials for diary products illegally in certain areas, according to local police.Police in Shaanxi Province on Thursday publicized a case on illegal use of leftovers of melamine-tainted milk powder.An initial investigation showed 10 tonnes of tainted milk powder leftovers were sold to a local diary producer Lekang Company in September and October in 2009. Three suspects were arrested.Three suspects from the Shanghai Panda Dairy Company were prosecuted in December 2009 on suspicion of using leftovers of melamine-laced milk powder in milk products. Local police said all the company's products had been recalled and caused no serious harms to the consumers.China's food safety authorities on Feb. 1 launched a 10-day checks for melamine-tainted milk products across the country.However, the string of problems gave another blow to China's efforts to restore confidence in its dairy products.The melamine-laced milk products scandal in 2008 killed at least six infants and sickened 300,000 children across the country.Any illegal practices concerning food safety would be punished severely, an official with the National Food Safety Rectification Office led by Health Minister Chen Zhu said earlier this week.The quality watchdog of Xi'an, capital of Shaanxi Province, has carried out food safety inspection on 73 batches of different brands of milk products and has not found problems.The northeastern Jilin provincial government kicked off a milk product safety check at the end of January."We must do our best to retrieve and destroy milk products that have quality problems. We can't stand a single pack of such milk powder to appear in market," said Zang Zhongsheng, head of the Jilin provincial administration for industry and commerce.There is no accurate figure on the amount of problematic milk powder that has not been destroyed in the 2008 milk products scandal. But in the bankrupt dairy producer Sanlu alone, more than 2,000 tonnes of melamine-tainted baby formula was sealed in 2008.Sanlu, based in Shijiazhuang in Hebei Province, suffered devastating losses and went bankrupt, standing in the spotlight of the melamine-tainted milk products scandal in 2008.How to destruct the melamine-tainted milk powder was still a tough nut to crack for many local authorities and dairy firms, according to industrial insiders.A number of experiments had been conducted to find a way to deal with the melamine-tainted powder in Shijiazhuang, but they all failed, according to a insider who declined be named."If we use the milk powder as fuels, it would cost much more to clean boilers than burning coal; if we use it as ingredients in cement, we could not get qualified products; if we just bury it, we worry someone might dig it out illegally as the volume is huge," the expert said."The milk powder piled like hills and people just don't know what to do," said Zhang Xingkuan, a lawyer who once handle cases on compensation for the scandal victims and frequently visited the dairy firms.It was more difficult to monitor small dairy firms, which were more inclined to use leftovers of tainted milk to cut cost, according to Wang Weimin, secretary-general of Xi'an Dairy Association."They will not do this when milk powder prices are low, but they will do this when milk powder prices soar," he said.To crack down on such practices, the Chinese government had vowed to investigate the case thoroughly and all factories that use prohibited materials in producing dairy products would be shut down with license suspended and punished severely.

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JAKARTA, Jan. 23 (Xinhua) -- China's State Councilor Dai Bingguo met with Surin Pitsuwan, secretary-general of the Association of South East Asian Nations (ASEAN) here on Friday.Dai highly appreciated the achievement of ASEAN in terms of ASEAN Community construction and its integration development. He said that China as a strategic partner supported the development of ASEAN and was willing to see it show more influence in international affairs.He said that the relationship between China and ASEAN had gone steadily, and the two sides had achieved plenty fruits in their cooperation. "As the China-ASEAN free trade zone went into operation on Jan. 1, the two sides saw their economic and trading cooperation entering into a comprehensive and deepening development stage, which provides more benefits to their people," said the visiting State Councilor.Dai added that the cooperation between China and ASEAN follows the development trend and people's wishes, and it would improve the peace and development of Asia-Pacific region, while the economic globalization and regional integration were being accelerated.He said China had attached great importance to its relationship with ASEAN. According to him, Chinese Premier Wen Jiabao declared a series of important initiatives on further strengthening China- ASEAN cooperation at the recent China-ASEAN summit. China is willing to join hands with ASEAN nations to fulfill these initiatives, expand and deepen communication and cooperation with them, share the opportunity, face the challenges, achieve win-win, and create a brighter future for the China-ASEAN strategic partnership, and contribute to the common development and prosperity of Asia.Dai also said that China as a member of East Asia family always proposed and supported East Asia cooperation. With a diversification, East Asia has many cooperation system existed. China advocates opening up and make each system to support and improve others with its own advantages. China welcomes countries outside East Asia to make efforts for the peace and development, with the cooperation between ASEAN and China, Japan and South Korea as a main channel and ASEAN working steadily as a guiding force.Surin said that the ASEAN-China relationship developed fast with many active, innovative and prominent achievements. According to him, China acted positively against the international financial crisis with a responsible attitude, which contributes significantly to the stability and recovery of Asia and world's economy.He added that the ASEAN nations appreciated the support and assistance from China, and was believing they could benefit from China's Development.The secretary-general said that ASEAN expected to join hands with China in the development of ASEAN-China free trade zone, enhance cooperation in more areas, realize mutual benefit and win- win, and improve the stability and prosperity in this Region. "We are confident about the future of ASEAN-China free trade zone," said Surin.

LONDON, Feb. 15 (Xinhua) -- British Prime Minister Gordon Brown said "Gong Xi Fa Cai", or "Wishing you prosperity" in Chinese, on Monday during a reception held at 10 Downing Street to mark the start of the Chinese Lunar New Year.In a message to mark the occasion, Brown said the government would continue to promote values shared with the thriving Chinese community such as the belief in "hard work, enterprise, community spirit and strong families."British Prime Minister Gordon Brown (1st L) expresses warm new year wishes to attendees during a reception at No. 10 Downing Street, the residence of the Prime Minister, in London, capital of the U.K., Feb. 15, 2010. Brown hosted a reception for overseas Chinese in Britain here on Monday to celebrate the Chinese Lunar New Year that falls on Feb. 14 this yearBrown said: "We are doing all we can to ensure economic stability and job security and I am proud that many Chinese entrepreneurs continue to create employment and contribute to the nation's GDP."Almost 100 guests including television presenter Gok Wan visited Number 10 to celebrate the beginning of the Year of the Tiger.   British Prime Minister Gordon Brown expresses warm new year wishes to attendees during a reception at No. 10 Downing Street, the residence of the Prime Minister, in London, capital of the U.K., Feb. 15, 2010.

BRUSSELS, March 22 (Xinhua) -- China welcomes the latest document issued by the European Union (EU) on climate change, but insists that the EU should raise its emission cut target to 30 percent by 2020, a visiting Chinese official said on Monday.Su Wei,chief negotiator of China for climate change talks in Copenhagen, told a press briefing here that China welcomed the communication the EU issued in earlier March,which elaborated the bloc's standpoints on climate change for the first time following the Copenhagen talks in December."China welcomed in general the EU's latest positions," which among others reaffirmed the principle of "common but differentiated responsibilities" undertaken by developing and developed countries in dealing with climate change, the Chinese official said.In the communication issued on March 9, the EU expresses its willingness to continue to play a leading role in fighting against climate change and reaffirms its commitment to reduce its greenhouse gases emissions by 20 percent by 2020 and to increase this reduction to 30 percent if "the conditions are right."However, Su told reporters that EU should and could raise its emission cut target to 30 percent by 2020 on the basis of 1990 if the bloc wanted to play a leading role in dealing with climate change.The move would put more pressure on the United States to put forward ambitious goals, the chief negotiator said.Su said he was visiting the EU headquarters with a Chinese delegation led by Xie Zhenhua, vice minister of the National Development and Reform Commission, to exchange views with his EU counterparts on climate change.China and the EU shared many common goals and interests, the two sides should work together to boost international negotiations on climate change, he said.World leaders are scheduled to meet later this year in the Mexican resort town of Cancun for another go at inking a legally- binding global accord on emission reductions after 2012.Su said that China hoped the meeting in Cancun can achieve positive and meaningful results and make further progress on the basis of the Copenhagen talks.

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BEIJING, Jan. 29 (Xinhua) -- Chinese Defense Minister Liang Guanglie Friday said the work of border and coastal defense must be enhanced for national interests.Defending China's sovereignty, territorial security and maritime interests should be a top mission of the country's border and coastal defense work, Liang said at a national meeting on border and coastal defense.The work of border and coastal defense should also contribute to improved relations with neighboring countries and social and economic development in border areas, he said.Senior Chinese leaders including President Hu Jintao (1st L, front), Premier Wen Jiabao (2nd L, front), Li Changchun (3rd L, front) and Zhou Yongkang (4th L, front) meet with delegates of a national meeting on border and coastal defense, in Beijing, China, Jan. 29, 2010.Senior Chinese leaders including President Hu Jintao, Premier Wen Jiabao, Li Changchun and Zhou Yongkang met with delegates and took photo with them before the meeting.The delegates included representatives of a national committee for border and coastal defense, military regions, border or coastal provinces, and border police authorities

BEIJING, March 2 (Xinhua) -- The cross-Strait Economic Cooperation Framework Agreement (ECFA) would be open to opinions of business people on both sides before formal negotiations on details, a political advisory body spokesman said here Tuesday.Zhao Qizheng, spokesman of the annual session of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), made the remarks at a press conference of the top political advisory body's annual full session, which will open Wednesday.Zhao also said CPPCC members attending the session would call for "more generous" concessions from the mainland in the ECFA since Premier Wen Jiabao had pledged to make concessions."The reason is very simple -- Taiwan compatriots are our brothers," Wen said Saturday in an online chat with Internet users.Formal negotiations of the pact would be held at the fifth round of talks between the mainland-based Association for Relations Across the Taiwan Straits (ARATS) and the island' s Straits Exchange Foundation (SEF), two organizations authorized to handle cross-Strait issues.The basic content of the agreement would cover major economic activities across the Strait, including market access for commodity trade and service trade, rules of origin, early harvest program, trade remedy, dispute settlement, investment and economic cooperation.

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BEIJING, Jan. 29 (Xinhua) -- China's auto sales would not rise as steeply as that in 2009, but would continue to see double-digit growth boosted by government stimulus measures, an official with the Ministry of Commerce said on Friday.Chang Xiaocun, who headed the market construction department of the ministry said at a news conference that research had shown that after a nation's per capital GDP surpasses 3,000 U.S. dollars, it would see brisk auto sales as more families could afford to buy cars.China met that criteria in 2008, he said.

NAIROBI, Feb. 12 (Xinhua) -- Achim Steiner, UN Under Secretary- General and Executive Director of the United Nations Environment Programme (UNEP) told Xinhua in an interview on Friday that China played a significant role in the process leading up to Copenhagen Climate Change Conference."I think China played a very significant role in the process leading up to Copenhagen, and in a sense it became very engaged at the highest international political level in the process," the UNEP chief said.Steiner noted that China took a significant step forward when it made its announcements of voluntary actions a few weeks before Copenhagen. And that sent a very important signal to the negotiations."We saw similar actions taken by Mexico, by South Africa, by Brazil, by Indonesia and also India. That created an opportunity," he said.Steiner admitted that Copenhagen did not deliver what the world had hoped, which was a deal among developed and developing countries to achieve significant agreement in reduction of emissions. However, he maintained that it was also not the failure that some people had attributed to it."I think in history it shall be written as a missed opportunity. We are now focused on moving forward towards Mexico and the world has an opportunity to reach an agreement," he said to Xinhua.On China's situation of environmental protection and carbon emissions reduction, Steiner said the nation has made rapid progress yet challenges still remain.He stressed that China has begun to take a different development path. Chinese leaders and people have started to look at development also from a sense of balance. And therefore environmental protection and sustainable development have taken a far quicker route of being addressed today than by some industrialized nations have done in historical terms."I think many of the measures the government is taking, from establishing a ministry of environmental protection to new legislation, to setting pollution standards, showed that in a period of just 10 to 15 years, China has walked a distance that some other countries had taken 30 to 40 years," he said.The UNEP chief added that "also let us be very realistic that environmental challenge for China is significant, and therefore effective action is necessary and urgent."He lauded China for including the notion of ecological civilization and the transition to a green economy into part of the country's mainstream development planning and the next Five- Year Development Program."To me it provides some very encouraging signs that we will see a very different economic development philosophy emerging in China. And this is also UNEP's mission to work with China in bringing the latest science and knowledge that have been developed across the world on green economy opportunities into the debate and discussions in China," he said.Referring to the upcoming Shanghai EXPO, Steiner said such big events can be not only a showcase for the country, but can also act as an experiment with policies, with new technologies and with new ways of management."The Shanghai EXPO, with the theme of 'Better City, Better Life, ' has put the quality of life, which is so closely related with environment management, at the heart of this international event," he said.Steiner compared the EXPO to the Beijing Olympics, saying that the 2008 Olympic Games in Beijing provided many examples of innovation technology as well as environmental management initiatives. It is in his belief that the Shanghai EXPO will just stand in the same tradition.