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BEIJING, March 27 (Xinhua) -- China's economy would moderate but remain robust in 2008 with a growth rate of 10.7 percent, providing a cushion against the expected international downturn, according to a forecast issued by the United Nations commission here on Thursday.     "Investment continues to be the main driver of growth, remaining resilient despite government cooling measures and with support from low real interest rates," said a report released by the UN Economic and Social Commission for Asia and the Pacific (UNESCAP).     "A slowdown in exports and the country's efforts to cool the economy are the main reasons for the moderation," it said.     Other factors expected to underpin China's growth include domestic demand, increasing spending power of rural consumers and rising consumption through higher government spending on social welfare.     Official statistics show China's gross domestic product growth accelerated to 11.4 percent in 2007, the fastest for 13 years.     The report said the U.S. sub-prime mortgage crisis is not expected to have a strong impact on growth in China.     "In a worst case scenario where the U.S. economy goes into recession, the impact on China will not be as great as on other Asia-Pacific countries. Due to its blistering pace, China's growth will remain resilient, but will slow," said Shuvojit Banerjee, a senior expert with the UNESCAP.     According to the report, China's increasing exports to the European Union are expected to compensate for a steady fall in exports to the United States, China's second largest export market. China has also witnessed a boom in trade with Africa.     It said Chinese and other Asia-Pacific investors are playing a key role in supporting developed countries through the turmoil. Sovereign wealth funds and state investment institutions from the region have bolstered weakened banking sectors in the United States and the Europe.     The report said China is facing an increasing challenge from inflation. The chief inflationary concerns lie in higher international oil and food prices. "Rising food prices are a bigger inflationary concern than oil prices because food accounts for a far higher proportion of consumer spending. Food price inflation particularly hits low income households."     The report also warned that the fast growth is coming at an increasing cost to the environment. It said the destabilizing effect of growth on the environment is becoming more apparent. Air pollution, especially in large cities, is increasing the incidence of lung disease.

After 18 months of deliberation and public consultation, legislators passed the long-awaited Labor Contract Law on Friday to improve workers' basic rights. The law, which would take effect on January 1 next year, won 145 of the 146 votes of the Standing Committee of the National People's Congress (NPC). One vote was not cast. The new law is considered the most significant change in the country's labor rules in more than a decade. It establishes standards for labor contracts, use of temporary workers and severance pay. It makes mandatory the use of written contracts and strongly discourages fixed-term contracts. According to the law, severance should be paid if a fixed-term contract expires but is not renewed without an appropriate reason. It is also stipulated that employers must submit proposed workplace rules or changes concerning pay, work allotment, hours, insurance, safety and holidays to the workers' congress for discussion. After the recent exposure of forced labor in brick kilns in Central and North China, the final draft added stipulations that government officials guilty of abuse of office and dereliction of duty would face administrative penalties or criminal prosecution. Xin Chunying, deputy chairperson of the NPC Law Committee, said the law is not intended to replace the current Labor Law but rather, to further standardize labor contracts in favor of employees. Li Yuan, one of the legislators in charge of drafting the law, said the law targeted bosses and officials who exploited workers. The draft law was first proposed in 2005 amid complaints that companies were mistreating workers by withholding pay, requiring unpaid overtime or failing to provide written contracts. Many workers were also becoming trapped in short-term contracts. Last March, the draft was made public for consultation, and legislators received about 192,000 public responses in a month. Only the Constitution, drafted in 1954, received more. However, business lobbies are worried that stricter contract requirements could raise costs and give them less flexibility to hire and fire employees. Both the European Union Chamber of Commerce in China and the American Chamber of Commerce in Shanghai (AmCham Shanghai) had made submissions to the NPC, suggesting the law might exert negative influence on foreign investment in China. In a letter to the NPC last year, Serge Janssens de Varebeke, then-president of the European Union chamber, warned the "strict" regulations could force foreign companies to "reconsider new investments or continuing their activities in China" because of possible cost increases. But Xin said there wouldn't be a substantial cost increase for companies that strictly follow the existing Labor Law. "All the principles have been included in the current law. The new law just details the provisions to facilitate implementation," she said.

BEIJING, March 26 (Xinhua) -- Chinese Premier Wen Jiabao met with Malawian President Bingu wa Mutharika here on Wednesday, and called for setting up formal mechanism to guide and coordinate bilateral trade cooperation.     Wen told Mutharika that to enhance China-Malawi friendly cooperative ties was in the fundamental interests of both sides, adding China was ready to expand substantial cooperation with Malawi.     The premier called on both countries to confer on setting up a guidance and coordination mechanism for trade cooperation. China would encourage its enterprises to increase imports from Malawi in a bid to stimulate bilateral trade and promote its balanced development. Chinese Premier Wen Jiabao (R) meets with Malawian President Bingu wa Mutharika in Beijing, capital of China, March 26, 2008. Mutharika started a weeklong state visit to China on March 24    Mutharika said the establishment of diplomatic ties had unveiled a new chapter for bilateral relations. Malawi would stick to the one-China policy and support China's reunification.     Mutharika said his country would maintain high-level exchanges with China, step up mutually beneficial cooperation in trade, technology, culture, medical treatment and social development, and Malawi would participate in the 2010 Shanghai World Expo.     Wen said China welcomed Malawi to join the China-Africa Cooperation Forum, and was ready to join with Malawi to inject new vigor to China-Africa friendly cooperation.     Mutharika echoed that Malawi was willing to contribute to cementing Africa-China cooperation.     Mutharika arrived on Monday afternoon for a weeklong state visit to China as Hu's guest.     He will also visit Chengdu, capital of Sichuan Province, and the cities of Shenzhen and Shanghai

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The Ministry of Agriculture on Monday confirmed a bird flu outbreak in South China's Guangzhou, which began with the mass deaths of ducks on September 5.The outbreak was confirmed as a sub-type of H5N1 bird flu by the National Avian Influenza Reference Laboratory, according to the ministry.It said 36,130 ducks had been culled as of September 17, after farmers in Sixian Village and Xinzao Township in the Panyu district of Guangzhou reported the deaths of their ducks on September 5.The agriculture ministry and the Guangdong provincial government immediately implemented an emergency plan to deal with the outbreak and the ministry said the outbreak has been brought under control.It also said no further deaths of fowl have been reported in the Panyu district or nearby areas.The last reported case of H5N1 bird flu in China occurred on May 19 at Shijiping Village in Yiyang City of Hunan Province, which killed more than 11,000 poultry with another 52,800 birds culled.China has reported a total of 25 human cases of bird flu since 2003, which have resulted in 16 deaths.

WASHINGTON -- The special US envoy on Sudan affairs said Wednesday that important progress has been made toward peace talks on Darfur and China plays a "constructive" role in facilitating such progress."I am very happy with the role the Chinese are playing," Andrew Natsios said in a speech at the Center for Strategic and International Studies, a Washington-based think tank."It is a constructive role," Natsios said. "I think the Chinese are like a locomotive that is speeding up."With mediation by China, he said, the Sudanese government has accepted a UN Security Council resolution adopted in July to authorize a hybrid UN-African Union peacekeeping force for the Darfur region.He said the major obstacles to the peace talks now come from the rebel groups rather than the Sudanese government.In a related development, China's Special Representative on African Affairs Liu Guijin said in Beijing on Tuesday that China will send a military liaison officer to Sudan's Darfur.Liu, who has just wrapped up a seven-day visit to the United States and the United Nations, said China has informed the UN of its decision.China also pledged to send a 315-member multi-functional engineering unit to Darfur in early October, which would be the first batch of UN-AU peacekeepers in place, and China will stick to its commitment, Liu said.Liu reiterated China's constructive and unique role in finding a solution to the Darfur issue, saying China has provided much aid and help with regard to the reconstruction and development of Darfur."The US and UN both hold positive views on China's role in resolving the Darfur issue, and hope China will play a bigger role in this regard," said Liu.

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.

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BEIJING -- China has ordered its police to behave well and improve their services to the public as the country marks the one-year countdown to the 2008 Beijing Olympic Games. The Ministry of Public Security has launched a one-year inspection campaign in Beijing and other cities hosting Olympic events as well as major tourist cities to ensure a polite, standard and efficient police services to citizens and foreign visitors. The inspection mainly deals with police who take a bad attitude towards the public and do not wear standard uniforms and insignia. An inspection team will oversee police service departments such as community police stations, traffic police brigades, patrolling cops, border entrance and exit offices, reception rooms for foreigners, border checkpoints, visa application centers and police alarm "110" phones. Police who smoke, chew food, chat or use chilly words in front of the public will be immediately punished by inspectors on the spot, says the ministry, adding the inspection team will find out whether the police can take proper, immediate and effective actions when the public, especially foreigners, ask for help. The campaign, which is a part of the overall Olympic security deployment, is aimed at maintaining a sound order for the upcoming congress of the Communist Party of China and the Olympic Games next August, and setting a good image of the Chinese police, according to the ministry.

BEIJING -- China may entirely switch to non-food materials such as cassva, sweet potato, sorgo and cellulose in producing ethanol fuel as a substitute for petroleum, said a government official. The country would approve no projects designed to produce ethanol fuel with food from now on, an official of the National Development and Reform Commission (NDRC) told a seminar on China's fuel ethanol development held in Beijing on Saturday. "Food-based ethanol fuel will not be the direction for China," said Xu Dingming, vice director of the Office of the National Energy Leading Group, who was also at the seminar. China has been trying to avoid occupation of arable land, consumption of large amount of grain and damages to the environment in developing the renewable energies. The current four enterprises engaged in producing corn-based ethanol would be asked to switch to non-food materials gradually, according to the NDRC official who declined to be named. The four enterprises in Jilin, Heilongjiang, Henan and Anhui have a combined production capacity of 1.02 million tons of corn-based ethanol per year. The country has become a big producer and consumer of ethanol fuel in the world after the United States, Brazil and European Union, according to the NDRC official. China Oil and Food Corporation (COFCO), the country's largest oil and food importer and exporter, would focus on sorgo in the production of non-food-based ethanol fuel, said Yu Xubo, president of COFCO at the seminar. COFCO, which owns the Heilongjiang enterprise and has a twenty-percent stake in the Anhui enterprise, aims to produce five million tons of ethanol fuel based on sorgo in the near future. COFCO is leading the way in developing cellulosic ethanol fuel under a cooperation agreement with Denmark-based Novozymes, which leads the world in researches into the key enzymes needed in large-scale production of cellulosic ethanol. The current cost for producing ethanol fuel from stalks of corn, which are discarded by farmers, is still too high. Novozymes is working on the commercialization of cellulosic ethanol both in the United States and China. "We are optimistic about China's prospect of making it work ahead of the US, as the cost of collecting the stalks of corn are much cheaper in China," said Steen Riisgaard, president and CEO of Novozymes. There is much opposition both in China and in the world to corn-based ethanol fuel, which is believed will lead to higher corn price.

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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.

The China Meteorological Ad-ministration (CMA) Tuesday announced the completion of a national climate observation network to help mitigate global warming.CMA director Zheng Guo-guang said the network would collect accurate information about climate change."Climate change is threatening the environment, state security and economic development," Zheng said.Responding to a UN plan, China's first climate observation network was set up in 1997. Seven departments - meteorology, water affairs, agriculture, environmental protection, forestry, ocean and scientific research - joined the network.The network set up 16 key observation areas, Zhang Renhe, director of the Chinese Academy of Meteorological Sciences Director, said.These are: Atmosphere and land systems in the Qinghai-Tibetan plateau, glacier; water and ecological systems in the Tianshan Mountain area; Xilingol pastures in the Inner Mongolia Autonomous Region; Dunhuang desert in Gansu Province; forests in Northeast China; water circulation systems in Sichuan and Yunnan provinces; agriculture in the Yellow and Huaihe river basins; the lakes of Dongting and Poyang; the atmosphere around Mount Waliguan in Qinghai Province; ecological systems in source regions of the Yangtze, Yellow and Lancang rivers; the economic belt around Beijing; economic development zones in the Yangtze and Pearl river deltas; Sichuan Basin; the land-ocean-atmosphere system around Bohai Sea; air-sea interaction in the South China Sea; and comprehensive oceanic observations.By observation and data processing, the network should provide data about temperatures, glaciers, frozen soil, accumulated snow, aerosoles, greenhouse gases, ozone, plant and soil."This data can help China predict natural disasters, strengthen forecasts of extreme weather events and be more adaptable when it comes to industrial projects," Zheng said.A National Climate Change Program was released in June, which pledged to cut greenhouse gas emissions, but with no specific goals.