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The Chinese government expresses strong dissatisfaction about the U.S. decision to impose penalty tariffs against the imports of Chinese coated free sheet paper, Wang Xinpei, spokesman for China's Ministry of Commerce, said early Saturday. The Department of Commerce of the United States on Friday announced its preliminary decision to apply U.S. anti-subsidy law to the imports of coated free sheet paper from China. "This action of the U.S. side goes against the consensus reached by the leaders of both countries to resolve differences through dialogue," Wang said. "China strongly requires the U.S. side to reconsider the decision and make prompt changes," the spokesman said, adding China will closely watch the development of the issue and protect its own legitimate rights. In 1984 the United States set the policy of not applying anti-subsidy law to "non-market economies". Such a practice had been taken as a judicial precedent and had not been changed, Wang said. The preliminary decision of the U.S. Commerce Department made a bad instance and it obviously does not conform with the current judicial precedent of U.S. courts and the consistent practice of the U.S. Commerce Department, the spokesman said. While regarding China as a non-market economy, the U.S. ignored the strong protests from China and decided to apply its anti-subsidy law against China. "The decision brings great harm to the interests and feelings of Chinese business people and is not acceptable," Wang said.The U.S. Department of Commerce on Friday announced its preliminary decision to apply U.S. anti-subsidy law to imports from China. The decision alters a 23-year old bipartisan policy of not applying the countervailing duty (CVD) law to China, which the U.S. government regarded as a "non-market economy", said the Department of Commerce in a statement, adding the change reflects China's economic development. "China's economy has developed to the point that we can add another trade remedy tool, such as the countervailing duty law. The China of today is not the China of years ago," said Commerce Secretary Carlos M. Gutierrez. The U.S. government also claimed that Chinese producers and exporters of coated free sheet paper received countervailable subsidies ranging from 10.90 to 20.35 percent. From 2005 to 2006, imports of coated free sheet paper products from China increased approximately by 177 percent in volume, and were valued at an estimated at 224 million dollars in 2006.

BEIJING -- China is likely to become the world's second largest consumer market by 2015,  said a report released by the Boston Consulting Group (BCG).Chinese shoppers select the luxury Louis Vuitton luggage at the first franchise store in Nanjing, East China's Jiangsu Province, July 25, 2007. [newsphoto]The report is based on a survey of 4,258 consumers in 13 Chinese cities from February to March 2007. According to the report, Chinese consumers are experiencing unprecedented wealth growth which is 3 to 5 times faster than developed countries in the past 50 years. Most Chinese consumers plan to spend more in near future to fulfill their family dreams."The past decade of rapid economic growth has brought prosperity but also uncertainty, resulting in a highly complex consumer market with diverse consumer attitudes," said Hubert Hsu, senior partner and managing director of BCG, at a press conference in Beijing."Capturing the next wave of consumer growth in China will involve developing deep consumer insights and creating marketing differentiation," said Hsu.The report said there are significant generational differences in terms of spending attitude among Chinese consumers. The strong interest in trading up, which means spending more money for more expensive products, was driven up by consumers' increasing desire for better goods and services and rising concern over safety and quality of cheap products.Chinese consumers put more faith in brand names compared with the US consumers and they believe good brand represents quality, safety, effectiveness and durability, said Hsu.Despite strong trading up desires, Chinese consumers continue to "treasure hunt" - make deliberate trade-offs to maximize "value" of their budgets. They use similar strategies for treasure hunting as their counterparts in other countries except several unusual tactics such as group purchase for volume discount, said the report.The report suggested global suppliers in China should establish strong, branded relationships with China's treasure-hunting consumers, provide the kinds of products that appeal to practical concerns and emotional needs, and be willing to customize their offerings to meet the needs of a geographically diverse population.While the retailers must make sure the categories they carry are the ones that treasure-hunting consumers will seek and focus on a product's technical and emotional benefits, said the report.

RUGAO - Zhou Fenying is a living witness to the dark history that still poisons China's relations with Japan more than 60 years after World War Two. When Zhou was 22, Japanese soldiers came to her village in eastern China, grabbed her and her sister-in-law and carted them off to a military brothel, she says. Now 91, Zhou has broken decades of silence to speak of her traumatic experience as a "comfort woman" -- the euphemism the invading Japanese used to describe women forced into sex slavery. "I hid with my husband's sister under a millstone. Later, the Japanese soldiers discovered us and pulled us out by our legs. They tied us both to their vehicle. Later they used more ropes to tie and secure us and drove us away," she told Reuters in her home village in Jiangsu province. "They then took us to the 'comfort woman lodge'. There was nothing good there," she said, speaking through a local government official who struggled to translate her thick dialect into Mandarin. "For four to five hours a day, it was torture. They gave us food afterwards, but every day we cried and we just did not want to eat it," Zhou added, sitting in her sparsely decorated home. The Chinese government says Japan has yet to atone properly for its war crimes, which it says included massacres and forcing people to work as virtual slaves in factories or as prostitutes. In 2005, a push by Japan for a permanent U.N. Security Council seat sparked sometimes violent anti-Japanese street protests in cities across China, with demonstrators denouncing Tokyo and demanding compensation and an apology for the war. "OF COURSE I HATE THEM" Zhou -- neatly dressed in a dark blue traditional Chinese shirt, her greying hair combed back into a bun -- avoided saying what had happened to her in the brothel, except that she was there with at least 20 other Chinese women. But her son, Jiang Weixun, 62, said she had told him they were repeatedly raped by Japanese soldiers on a daily basis. This harrowing experience has left a deep scar on Zhou's life. She cannot forget, and nor can she forgive. "If it were you, wouldn't you hate them? Of course I hate them. But after the war, all the Japanese went home. I'm already so old. I think they are all dead by now," Zhou said. Zhou said she had served as a "comfort woman" for two months before a local town official rescued her by paying off the Japanese. She went back to her husband of 10 years, Ni Jincheng, who later died fighting the Japanese. Zhou remarried and lives with her son, Jiang, from her second marriage. Jiang said his mother had been moved to tell her story after learning of the death of Lei Guiying, a well-known former Chinese comfort woman. Lei died of a brain haemorrhage in April. She had gone public with her experiences last year after hiding the ordeal from her family for 60 years. Jiang said he was not ashamed of his mother, one of only an estimated 50 former Chinese sex slaves still alive today. He said her experiences should highlight to the world the extent of the wartime crimes committed by the Japanese. "When my mother told me about this, as her son, I do not hate her for that. The Japanese are the ones I should be hating. The Japanese are those who committed the crimes. The Japanese are responsible for this, they raped all of the women," he said. Tokyo has not paid direct compensation to any of the estimated 200,000 mostly Asian women forced to work in brothels for the Japanese military before and during World War Two, saying all claims were settled by peace treaties that ended the war. Instead, in 1995, Tokyo set up the Asian Women's Fund, a private group with heavy government support, to make cash payments to surviving wartime sex slaves.

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Beijing - China is turning the site of a prison camp run by Japanese forces during World War Two into a war museum, the Xinhua news agency said on Sunday. More than 2,000 prisoners from the United States, Britain, the Netherlands and Australia were imprisoned at the camp in Shenyang, a Manchurian city formerly known as Mukden, between November 1942 and August 1945. More than one in 10 of them died, Xinhua said. Many Chinese believe Japan has yet to apologize properly for its invasion and occupation of China in the years leading up to and during the war. The 54 million yuan (US million) museum in Shenyang will include a two-storey brick building, three bungalows and a water tower, all original camp buildings in the Dadong district, Xinhua said. Two walls in a square will be inscribed with the names of the prisoners of war. China has a museum in Nanjing commemorating the slaughter of the citizens of that city, formerly known as Nanking, by invading Japanese troops 70 years ago. Nanjing has become the focal point for Japanese ultra-nationalists who dispute the Chinese estimate that 300,000 died or even that any massacre occurred. An Allied tribunal after the war put the death toll at about 142,000 men, women and children.

BEIJING - Floods and landslides have killed at least 360 people across China this summer and destroyed more than 4 million hectares (15.4 million sq miles) of crops, Xinhua news agency said on Wednesday. Direct economic losses were 24.3 billion yuan (.21 billion), according to latest figures from the State Flood Control and Drought Relief Headquarters. "Apart from 217,000 houses wholly or partially destroyed, more than 4.28 million hectares of grain crops have been hit, with 2.03 million hectares totally destroyed," headquarters deputy director Cheng Dianlong was quoted as saying. Most of the deaths occurred after downpours across the Jialing River Valley in the southwest province of Sichuan which have resulted in floods in almost all the tributaries of Jujiang River, a branch of the Jialing, and triggered severe mountain torrents, mud-rock flows and landslides. "Ferocious floods battered 40 counties along their route, submerging the downtown areas of four counties and shattering two small dams," Xinhua said. Cheng warned the situation across the Huai River Valley was at flashpoint with all trunk rivers there reporting dangerously high water levels. China flooded dozens of evacuated villages to ease pressure from the swollen Huai in the eastern province of Anhui. More rain was forecast for the next two days along the Huai, flowing through the central province of Henan and the eastern provinces of Anhui and Jiangsu. A total of 545 people were killed by natural disasters in China in the first half of the year, according to a report released by the Ministry of Civil Affairs. Another 78 people went missing as a result of natural disasters, including floods, landslides, mudflows, gales, snowstorms and earthquakes.

KUNMING -- A gas blast in a private coal mine has killed at least seven miners and injured five in southwest China's Yunnan Province, sources with the local government said Saturday.The blast occurred around 6:00 a.m. Saturday in the Shunxing Coal Mine in Fuyuan Township of Qujing City, in eastern Yunnan. Twenty-seven miners were working underground, and fourteen people managed to escape.More than 400 rescuers struggled to pull out seven bodies and five miners alive. One miner remains missing.The injured workers are being treated in a local hospital.The coal mine, which was built in 1984 with a designed production capacity of 90,000 tons, had been ordered to suspend operation and go through renovation after county coal mine administration staffs inspected the mine on Friday, but coal mine managers secretly organized the miners to work in the night.Local officials are investigating into the cause of the accident.

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XI'AN -- A fire burnt up trees and shrubs on a mountain that shrouds one of the most famed imperial mausoleums in the ancient city of Xi'an in northwest China's Shaanxi Province, but no damage was caused to the cultural relics, local museum officials said on Sunday.The fire broke out around 2:00 p.m. Saturday on the western part of a mountain that encased the tombs of a powerful Chinese empress Wu Zetian and her husband Gaozong in the Tang Dynasty (618-907). The Qianling Mausoleum, as the tombs are called, reportedly houses the most precious possessions of the two rulers, including paintings, ceramics, calligraphy works and jewelry articles.The fire was fanned up by sandstorms which struck the area on Saturday, said Fan Yingfeng, curator of the Qianling Museum.More than 100 local villagers and 15 fire-fighters managed to put out the fire around 3:10 p.m. on Saturday. About 30 trees and a few shrubs were lost to the blaze.Initial investigation showed the fire was caused by a deserted cigarette end in the dry grasses."Although the fire didn't cause any major damage, it reflected an urgent need to educate residents in neighboring villages to guard against fire risks," Fan said.He said lessons should be learnt from the destruction of a 600-year-old Namdaemun gate in Seoul, one of the most treasured landmarks in the Republic of Korea. The two-tiered gate was set ablaze by a man upset over a land dispute.

Another two closed-end stock funds have received official approval from China's securities regulator, Xinhua learned from a company source here on Friday.     The China Nature Asset Management Co. Ltd's Tianzhi Fund and the Dongwu Fund run by Soochow Asset Management Co., Ltd received regulatory approval from the State Securities Regulatory Commission Friday.     The Tianzhi stock fund will open through China Communication Bank, China Construction Bank, the Agricultural Bank of China, the Industrial Bank Co., Ltd, Shanghai Pudong Development Bank, CITIC Bank, Minsheng Banking Corp., Ltd, and with big brokers.     The Dongwu fund is to be issued by the Industrial and Commercial Bank of China, the Agricultural Bank of China, China Construction Bank, the Postal Savings Bank, Huaxia Bank and qualified individual brokers.     Both companies declined to say how much they expected to reap from the listing.     Four stock funds launched by Bank of China Investment Management Co., Ltd. and AXA SPDB Investment Managers, CCB Principal Asset Management Co. and China Southern Fund Management Co., respectively, received official approval in the first half of February.     Of the four, CCB Principal Asset Management's Jianxin Fund and the Nanfangshengyuan Fund run by China Southern Fund Management Co. made their debut on Feb. 18.     Market analysts said the launch of these funds was expected to bring a new round of fresh capital into the sliding stock market.     China's securities watchdog suspended the launch of new funds late last year in reaction to the surging domestic stock market. The Shanghai Composite Index nearly doubled last year.

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Blogging, a form of citizen journalism, has caught on so much in China that even some government officials are getting into it.The highest-ranking official or former official to write a blog is Zhao Qizheng, former director of the State Council Information Office, now president of the Journalism School of Renmin University in Beijing.He launched the blog "Zhao Qizheng and his books" (http://blog.sina.com.cn/zhaoqizheng) on August 3 and uploaded several chapters of his latest work In the One World - 101 Tips on How to Communicate with Foreigners. One of them, about the importance of smiling, has been read by nearly 40,000 netizens since it was posted a week ago.In a letter of August 14, Zhao thanked netizens for reading and commenting on his blog and apologized that he could not respond to each comment or question because he could only surf the Internet for limited time every day, and that he was a slow typist.Some netizens have used his blog to speak directly with the former top news official.One of them, called "Peach", a journalism student complained of a perceived lack of jobs in the industry and asked for his advice.The direct interaction between bloggers is one of the most appealing elements about this form of communication.Arguably the most popular blog run by an official is that of Liao Xinbo, deputy director of the provincial health bureau of South China's Guangdong Province.Liao calls himself "Doctor Brother Bozi" and his blog (http://blog.sina.com.cn/liaoxinbo) has been read more than 650,000 times since it was launched last April. At present it ranks the sixth most popular blog in Guangdong.The health official is known for being outspoken. On Monday, he posted an article by an anonymous doctor which blamed China's apparent failure on medical reform over the last 30 years on the lack of fair pay for doctors."If the situation continues, the next medical reform is doomed to fail again," the post warned.Liao also argued in his blog that health services were not a commodity that should be "bought" by patients, a key point that health providers need to serve the public, instead of trying to rake in money.Netizens who agreed with Liao proposed the official lobby his allies at the provincial people's congress - the legislative body - to draft a law especially for medical contracts.Netizens even went as far as drafting their own medical contract law, which Liao posted on August 24 commenting: "I have never studied laws and cannot give any comments. I wish my friends who are interested to give their ideas".Dozens of lawyers responded.According to one of them, legal tangles in the medical sector were difficult to settle because there were already too many laws, but not one powerful or specific enough to tackle problems with malpractice disputes.The netizen proposed that it was with some urgency that a law was drafted that covered the entire sector, instead of one that specifically dealt with contracts.Whether or not the fact the netizens' law proposals were right or wrong, their interaction with this sort of blogging demonstrates how ordinary people can debate the merits of such proposals.Liao's blog, with its inspiring discussions, provides a prime example of a form of "direct democracy".There are no figures available as to how many officials have blogs in China.However, in Suqian, a mid-sized city in East China's Jiangsu Province, 81 middle and high-ranking officials in the municipal government have opened blogs on the government website (http://blog.suqian.gov.cn/).Their Communist Party secretary, Zhang Xinshi, took the lead."Zhang hopes that those who are in charge at the different government organs can also have blogs so that they can express their ideas, attract people's discussions and build an efficient channel of communication between officials and ordinary citizens," said a Suqian Daily report about a working conference this April.Zhang has updated his blog almost every day and written long articles on weekends about a wide range of topics from global climate change to professional education.An article on "civilized behavior" prompted the local Suqian Daily to open a column about the topic, and more than 100,000 pupils and high school students distributed pamphlets on civilized behavior in the streets of his city.Almost each of Zhang's online articles was read more than 400 times, but there have been few posted responses from the public.When a comment was made, it often turned out to be a pledge of a subordinate to implement the Party secretary's ideas, not public feedback.A report in the People's Daily last month said officials in Suqian had published more than 1,700 articles on their blogs and these articles were read by more than 760,000 netizens."It is a good thing that officials opened blogs and strengthen their communication with the ordinary citizens," Xie Chuntao, professor at the Party School of the Central Committee of the Communist Party of China in Beijing, said.As part of China's e-governance construction, 12,000 government websites have been built in the past decade, according a report by Xinhua News Agency last December.More than 96 percent of the central government organs, 90 percent of provincial governments, 96 percent of municipal governments and 77 percent of county governments have their own websites."By further exploring the communication possibilities of blogs, officials may better win the citizens' trust if there is successful communication between the two sides," said Mao Shoulong, political science professor at Renmin University of China in a commentary in the People's Daily last year.But he also feared that some officials may have their opinion influenced by the "small club in cyberspace"."Actually, if we want the government to get nearer to the ordinary citizens, we can make more efforts on improving our democratic system instead of using the highly personalized blogs," he said."At the current stage, we can improve the government websites that widely exist, and make them work better in publicizing policies and communicating with netizens. This is a more constructive choice."

WASHINGTON -- Financial systems in Asia appear well placed to handle the effects of the global financial market turbulence that broke out in July, said a report released by the International Monetary Fund on Friday.The report, Regional Economic Outlook: Asia and Pacific, explained that Asia was not at the epicenter of the recent turmoil, and markets and financial institutions in the region have been less affected to date than those in the United States and Europe."This reflects the relatively small direct exposure to US subprime mortgages and, more broadly, to leveraged and complex structured credit products, including by hedge funds," said the report.But it also warned that markets have begun to normalize somewhat at the time of this writing, although much uncertainty remains.The report expressed optimism about Asia's future economic performance, saying growth has been stronger than expected across much of the region, with domestic demand making an increasing contribution in a number of economies."China and India continued to lead the way, with high growth backed by strong investment, although the contribution of net exports to growth in China continues to rise," said the report."The pace of activity in the NIEs and ASEAN-5 remained solid, with strong investment in the former and strong consumption in the latter," the report added.The NIEs, or Newly Industrialized Economies, refers to Hong Kong and Taiwan of China, South Korea, Singapore. ASEAN-5 refers to Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.China is expected to increase 11.5 percent in 2007 and 10.0 percent in 2008, while India is projected to expand 8.9 percent this year and 8.4 percent next year.The Asian economies as a whole will grow robustly at 8.0 percent this year and moderately to a still-brisk 6.9 percent next year, said the report.