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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by relevant provisions of WTO agreements."Other preferential policies on income tax pertinent to the disputes have been repealed or will be repealed along with the implementation of the new Enterprise Income Tax Law of China," the statement added.According to the Chinese mission, the MOUs will be notified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.

Washington - China is on course to catch up with the United States and join the front ranks of world economic powers, but that is little cause for concern even among Americans, a global survey said Monday. Most respondents in 13 countries agreed it was "likely that someday China's economy will grow to be as large as the US economy," according to the opinion poll by the Chicago Council on Global Affairs and WorldPublicOpinion.org. "What is particularly striking is that despite the tectonic significance of China catching up with the US, overall the world public's response is low key -- almost philosophical," said Steven Kull, editor of WorldPublicOpinion.org. But the poll showed there is also distrust of China to "act responsibly" in world affairs.  In no country was there a majority who felt that China's economic rise would be mostly negative, but that was not because China is particularly trusted, the pollsters said. Majorities in 10 out of 15 countries said they did not trust China "to act responsibly in the world." But the same number also said they distrusted the United States. "Though people are not threatened by the rise of China, they do not appear to be assuming that it will be a new benign world leader," Kull said. "They seem to have a clear-eyed view that China is largely acting on its own interests." The Chinese themselves are among the more skeptical populations, with only half saying that their economy will catch up with the United States'. Among Americans, the percentage was 60 percent. Only in India and the Philippines did a plurality of respondents say the United States would always remain a bigger economy than China. The highest level of concern about the implications of China's economic march was in the United States, where one in three is worried. But 54 percent of Americans said that its rise would be "neither positive nor negative" while one in 10 said it would be mostly positive. Only in Iran did a majority -- 60 percent -- say that it would be "mostly positive for China to catch up." The survey included 18 countries: Australia, Argentina, Armenia, China, France, India, Iran, Israel, Mexico, Peru, the Philippines, Poland, Russia, South Korea, Thailand, Ukraine, and the United States, plus the Palestinian territories. Not every question of the poll was asked in each country, so that the results for some questions covered less than 18 countries.

China Securities Regulatory Commission announced here on Friday that it has approved the initial public offering (IPO) plans of three domestic companies.     They are the Sichuan-based software and equipment provider Wisesoft, nitrocellulose producer Sichuan Nitrocell Corporation, and husbandry company Shandong Minhe.     It also approved the issue of three stock funds, bringing the total of newly approved funds of this kind to 18 since February. A bond fund also won approval.     New funds approved since February equals half of all funds approved last year, which would injects more capital into the declining stock market.     Though the market is less sensitive to new fund issue as more funds win approval, the accumulation of capital would possibly lead to positive short-term change in the market, analysts said.

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TAIPEI, June 23 - Taiwan "presidential candidate" Ma Ying-jeou, who is from the main opposition party, has picked a "former premier" and economic expert as his running-mate for the 2008 election. Ma, from the Nationalist Party or Kuomintang (KMT) and one of two serious contenders for the "presidency", chose former "premier Vincent" Siew because of his experience, one of Ma's aide told Reuters. Siew, 68, served as "economics minister" from 1990 to 1993 and as "premier" from 1997 to 2000 under then "president" Lee Teng-hui. He now chairs the authoritative Chung-hua Institute for Economic Research. Siew ran unsucessfully for "vice-president" alongside KMT candidate Lien Chan in 2000, when opposition leader Chen Shui-bian swept to power, putting an end to half a century of Nationalist rule. Ma faces a close contest next year with Frank Hsieh, candidate of Chen's ruling Democratic Progressive Party (DPP).

BEIJING -- China's education officials are joining with employment authorities to mount investigations into reports of agencies and individuals who lure minors to work, said the Ministry of Education on Thursday."We have received reports that some agencies and individuals lured minors to work on the pretense of introducing them to part-time jobs or internships," said the ministry in a circular.Education authorities across the country will join with officials who have law enforcement powers in labor departments and commerce and industry administrations to intensify supervision and management to stop illegal employment of minors by agencies and individuals, it said.The ministry asked its local branches and all schools to be aware and report illegal employment to the authorities.Chinese law bans minors under the age of 16 from working and those between 16 and 18 must be given easier and safer work than adult workers.Employers who violate the law can be fined and, if the crime is serious, their business licenses will be withdrawn.In June, private brick kilns in north China's Shanxi Province were found abusing workers, many of whom were underage, in a forced labor scandal.A total of 95 officials in the province have been punished in the wake of the forced labor scandal.The ministry also warned vocational schools not to violate regulations on internships, which ban students from interning during their first year.Most vocational schools in China take in students who finish three years in secondary school, but do not go to high school.In 2004, a private vocational school in southeast China's Jiangxi Province was caught luring first-year students to work full-time in an electronic hardware factory during their summer vacation by promising free tuition.

Soaring global oil prices have led to small refiners drastically cutting down on production - forcing Sinopec to fill the void.Since the prices of refined oil products are set by the central government, the refiners - private or local-government-owned - find it unprofitable when the price of crude is as high as is now. Crude prices reached a record .80 a barrel at the New York close on Monday."Surging international crude prices are exerting mounting pressure on the local market (by discouraging small refiners). We are already running at full capacity to ensure fuel supply," Mao Jiaxiang, vice-president of Sinopec Economics & Development Research Institute, told China Daily Tuesday.Sinopec is Asia's top refiner, feeding the bulk of fuel consumption in China. But due to capacity limitations at its plants, there is a rising gap between demand and supply.Mao pointed out that fuel shortages are mainly triggered by the production drop at medium- and small-sized refiners scattered around the country, which contribute 5 to 10 percent of the country's supply.The National Development and Reform Commission (NDRC), the top economic planner, keeps a tight lid on domestic fuel prices to fend off inflation, only allowing refiners to set prices within an 8 percent band of a government-imposed benchmark.Sinopec will have more refining capacity on stream next year, which will help ease supply pressure, Mao said.This year, it is believed Sinopec may import more oil products from abroad if necessary. The company imported 60,000 tons of gasoline in September and sold it at a lower price.Gasoline retailers raised prices by 2.92 percent in the first nine months after crude costs climbed, the NDRC said in a statement on its website on Monday.However, the NDRC said last month that energy prices will not be raised "in principle" this year after the consumer price index (CPI) hit a 10-year high of 6.5 percent in August."As global crude prices and the CPI stay at high levels, it is possible for the authorities to seek a compromise by not raising fuel prices but giving subsidies to major refiners at the end of the year," said Niu Li, an economist with the State Information Center affiliated to the NDRC.

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Chinese children have grown taller and heavier in recent years but their health is getting worse, a senior education official said on Wednesday, criticising pressure from parents and teachers to study. A pupil raises his hand to answer questions at a class in Jiaxing, east China's Zhejiang Province, in this photo taken on April 6, 2005. "The inappropriate educational concepts, which put study ahead of anything else and impose great burden on pupils, have seriously affected their healthy growth," said Liao Wenke, an official in charge of youth development. "The endurance, strength and lung capacity of the children continue to fall - and rapidly, especially in the last 10 years," Liao told a news conference. The average height of children aged seven to 18 had increased by up to 1 cm in 2005 from 2000, and the average weight had also risen - but the performance in sports had declined. "Obese schoolchildren are increasing in numbers swiftly, and the percentage of myopia remains high," he said. China now has the world's second highest myopia rate among schoolchildren, blamed in part on too much study, and obesity among the young has become a major health concern. Chinese parents and teachers pressure children to succeed at an early age, with holidays and leisure time often sacrificed for homework to ensure success in college entrance exams. The education ministry had urged schools nationwide to pay more attention to sports and lighten children's burden by reducing homework and increasing exercise, Liao said. President Hu Jintao also emphasised the importance of sports for children this week, urging local governments to use "healthy competition" to shape Chinese youth.

BEIJING -- Timothy Keating, US Pacific Command commander-in-chief, will visit China from January 13 to 16, the Chinese Ministry of National Defence (MND) said on Tuesday.During Keating's China stay, senior Chinese generals and officials from the Central Military Commission, the General Staff of the Chinese People's Liberation Army (PLA), Guangzhou Military Area Command and the Ministry of Foreign Affairs will meet him separately, the foreign affairs office of the MND said in a press release.The Chinese officials were expected to widely exchange views with Keating on Sino-US military ties, the Taiwan issue, and international and regional affairs of common concern, according to the press release.The four-day tour would also take Keating to the country's financial hub of Shanghai, and Guangzhou, capital of the southern Guangdong Province. There, he was scheduled to visit the PLA military institutions and bases and hold a seminar with Chinese military officials."China takes positive attitude toward developing military relations with the United States, and hopes Keating's visit could further enhance understanding, expand consensus and boost cooperation, so as to promote the bilateral military ties to grow steadily in the new year," the release said.The MND was consulting with the US side on detailing arrangements of the visit.Keating was visiting China for the second time since being appointed to the post in March. He was last here in May.

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The central finance department will continue increasing its support to the country's rural areas, sources from a meeting of the political bureau of the Communist Party of China Central Committee said.The Xinhua News Agency on Saturday cited a political bureau meeting as saying that the country should further muster up strength to solve the problem of its poor agricultural infrastructure and the sluggish development of rural areas by "increasing input in agricultural sectors and rural areas".The report, which comes just days before the Party's 17th National Congress on October 15, the most important political gathering in China which will set guidance for future development, suggests Party leaders are concerned about the urgency needed to improve farmers' lives, analysts said.An anonymous official from the Ministry of Finance said that the central government has made financial support for rural areas a major priority .The country has rolled out a series of preferential policies to boost the development of its vast countryside, home to its more than 700 million rural people, including agricultural taxation reform to alleviate farmers' burden and direct subsidies to ensure gains from growing crops.The State has also exempted farmers from some taxes such as those in the slaughtering and animal husban-dry industry.Statistics from the ministry shows that the central coffers plan to invest 391.7 billion yuan ( billion) in the development of its rural areas this year, an annual increase of 15.3 percent.To further encourage farmers to grow crops, billions of yuan have been allotted for agricultural subsidies for grain prices, seeds, and cultivation facilities.About 125 billion yuan of tax has been waived since the removal of a series of agricultural taxes in recent years, the official said.The results of these preferential policies were obvious, the official said, with statistics showing a fourth consecutive bumper grain harvest this summer.

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.