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CAPE TOWN, South Africa - Central bank chiefs from the U.S., Europe and Japan warned Tuesday of the risks of the Chinese economy overheating, potentially adding to inflationary pressures in other countries. U.S. Federal Reserve Chairman Ben Bernanke and European Central Bank President Jean-Claude Trichet also urged Beijing to let its currency rise in value, saying it would benefit both China and the global economy. "A quick pace toward greater flexibility would be in China's interest and create more flexibility for monetary policy to address the potential overheating of their economy," Bernanke said in a satellite linkup with a banking conference in Cape Town. "We could all be better off, China on the one hand and the global economy on the other hand," echoed Trichet. Critics argue that China is keeping its currency artificially low, contributing to its massive trade surplus with other countries and undermining competitors' prices. Both Bernanke and Trichet conceded that the cheapness of Chinese products flooding world markets had helped reduce global inflation, although said this was balanced by China's huge appetite for fuel and raw materials -- which has contributed to higher oil prices. Overall, China's impact on global inflation was "modest," Bernanke said. China is one of the world's fastest-growing economies, and its expansion has had a ripple effect on prosperity in other countries and offset more modest growth rates in North America, Europe and Japan. Trichet said the current boom was "absolutely exceptional in the global economy," but warned that this could not last indefinitely. "Complacency would be the worst possible advice for all of us," he said. Japan, where growth is a sluggish 2 percent, is keeping a watchful eye on the new Asian giant. "We need to be mindful of the risk of overheating and we can't rule out some risk of inflation in the Chinese economy," said Toshihiko Fukui, governor of Japan's central bank. China is witnessing a stock market boom, with millions of first-time investors jumping into the market, tapping savings and retirement accounts and mortgaging homes to buy stocks. Authorities are worried that the new money is fueling a bubble in prices. Chinese stocks rebounded Tuesday in volatile trading after their sharpest one-day drop in three months a day earlier as strong buying by institutions offset selling by retail investors. The benchmark Shanghai Composite Index fell 8.3 percent on Monday -- the benchmark's sharpest decline since an 8.8 percent drop Feb. 27 triggered a global market sell-off.

 BEIJING -- China's economy in 2008 will maintain a robust and stable momentum despite uncertainties ahead, according to signs revealed during the country's top legislative and political advisory sessions. Liu Shucheng, a political adviser and director of the Economic Research Institute of the Chinese Academy of Social Sciences (CASS), believes it is almost out of question for China to score 10 percent of gross domestic product (GDP) growth this year."China's economy has maintained a long period of continued and stable growth, which is unprecedented since the founding of New China (in 1949)," he said.Justin Yifu Lin, a deputy to the National People's Congress (NPC) and the World Bank's chief economist, holds a similar view, saying China's economy would be affected little by the U.S. subprime crisis."The demand by the United States, China's second largest trade partner, would not decrease by a large margin as most of Chinese exports to it were low- and middle-end," Lin said.Despite the sound economic expansion on the whole, Zhang Quan, an NPC deputy and head of Shanghai environmental protection administration, held that China should be fully prepared for the uncertainties ahead."Risk prevention capability should be further strengthened. Just as an old Chinese saying goes: be prepared for danger in times of safety," he said.In his government work report at the NPC session, Premier Wen Jiabao said, "There are quite a few uncertainties in the current economic situation home and abroad, so we need to keep close track of new developments and problems, properly size up situations and take prompt and flexible measures to respond to them while keeping our feet firmly rooted in reality."China's GDP in 2007 reached 24.66 trillion yuan, an increase of 65.5 percent over 2002 and average annual increase of 10.6 percent. However, the consumer price index (CPI) in 2007 rose 4.8 percent year-on-year, the highest since 1997 and well above the 3 percent target, mainly due to rises in food and housing costs. In January this year, monthly CPI rose 7.1 percent, the highest monthly surge in the past 11 years.Meanwhile, the U.S. Federal Reserve cut interest rate six times in seven months. The European Central Bank (ECB) held key interest rate steady for fears of further inflation in the eurozone as inflation remained a record high of 3.2 percent since the beginning of the year.In general, the impact from U.S. subprime crisis on global economy is not clear. And there is no consensus on how international oil price and price hikes would impact on inflation.Under such circumstances, Premier Wen called for the appropriate pace, focus and intensity of macroeconomic regulation to sustain steady and fast economic development and avoid drastic economic fluctuations.The premier said China would strive to keep this year's CPI increase at around 4.8 percent while following a prudent fiscal policy and a tight monetary policy.As the U.S. newspaper International Herald Tribune observed from the premier's report, the price hike has become the top concern of Chinese government. The main task is to rein in growing inflation and prevent the economy from being overheated.China's top economic planner, central bank governor and financial minister gathered at a press conference on Thursday to explain government measures to regulate macro-economic growth and contain rising inflation.To prevent fast economic growth from becoming overheated growth and keep structural price increases from turning into significant inflation, the People's Bank of China raised the reserve requirement ratio by half of a percentage point to 15 percent on January 25, the highest since 1984. In 2007, the central bank had raised the ratio ten times and benchmark interest rate six times.Economists believe the measures is to ensure sound economic growth and stabilize market anticipation of inflation. The central government has regarded curbing price hikes as the "rigid lever" for this year's macroeconomic regulation while saving room for economic structure adjustment.For low-income earners, who are affected most by growing inflation, a protective umbrella will be provided by the government that advocates "putting people first"."I believe the government will make greater efforts to solve social issues and improve people's livelihood through increasing fiscal revenue and making use of other resources," said Jia Kang, a political advisor and director of the Research Institute for Fiscal Science under the Ministry of Finance.Indeed, Premier Wen's report showed unusual concern on the issue of prices, and came up with nine measures, short- and long-time, to increase effective supply and curb unreasonable demand.These measures include expanding production, especially the production of the basic necessities of life such as grain, vegetable oil and meat as well as other commodities in short supply, speeding up improvement of the reserve system, promptly improving and implementing measures to aid the low-income sector of the population and to make sure that the prices of the means of production, particularly agricultural supplies, do not rise rapidly.

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.

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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.

In the hall of the so-called "Tibetan government in exile" in Dharamsala, India, there is a large map of the supposed "greater Tibet area".The area covers the Tibet Autonomous Region and Qinghai Province, one-fifth of the Xinjiang Uygur Autonomous Region, one-third of Gansu Province, two-thirds of Sichuan Province and one-fourth of Yunnan Province, spanning about 2.4 million sq km and nearly a quarter of China's territory.Holidaymakers take photos with digital cameras near the Potala Palace in Lhasa, the Tibet Autonomous Region. [China Daily] The ** Lama has advocated a "high degree of autonomy" for Tibet in such a geographic scope and made it a preliminary condition for any negotiation with the central government. But such an idea is totally absurd for three major reasons.First, the distribution and the layout of the Tibetan population and the administrative divisions were formed during the long process of historical development; there is no historical basis for an administrative division such as "greater Tibet area".Archaeological excavation and documentation show the Qinghai-Tibet Plateau area has long been inhabited and has a diversified culture.In the Sui Dynasty (AD 581-618) and the Tang Dynasty (AD 618-907), the Qinghai-Tibet Plateau was an area cohabited by different ethnic groups.The regime of Tubo Kingdom (AD 629-840) coexisted with others such as the Tang Dynasty, Uighur and Nanzhao, in a territory cohabited by various ethnic groups and tribes.The headquarters and the main area of jurisdiction of the Tubo Kingdom basically constitutes the Tibet Autonomous Region today while other dependent territory is the region inhabited or cohabited by various ethnic groups.During the Yuan Dynasty (1271-1368), three chief military commands (three Pacification Commissioner's Offices) were established in areas with Tibetan traditions, namely U-Tsang Ngari, Amdo and Lhams, the divisions of which were carried out in the Ming Dynasty (1368-1644) and laid the base for the administrative division of today's Tibet and other Tibetan administrative divisions.The Qing Dynasty (1644-1911) further defined the boundary between Tibet, Sichuan and Yunnan. In 1731 the Qing government divided the border of the areas under the jurisdiction of the grand minister resident of Tibet and the grand minister superintendent of Xining. The administrative division of Tibet has not changed much since.Second, the so-called administrative region of "greater Tibet area" is a historical product of the invasion by imperial powers. From 1913 to 1914, the British-instigated Simla Conference was held, which brought up the concept of the so-called "greater Tibet area" - that the territory of Tibet covers part of Xinjiang to the south of Kunlun Mountains and the Anding Tower, the whole of Qinghai Province, the western areas of Gansu and Sichuan provinces, and Dajianlu and Adunzi in the northwest of Yunnan Province.When this was rejected by the representative of the Chinese government, Britain proposed again to divide the Tibetan-inhabited areas of China into inner Tibet and outer Tibet. The former referred to the small parts in Yunnan, Qinghai and Xikang, where the central government would enjoy dominion; outer Tibet included U-Tsang, Ngari and most of Xikang, which was to be governed by the Tibetans themselves.This shows that from the very beginning, the so-called "greater Tibet area" has been a separatist plot. Even the weak Northern Warlords government of China saw through the imperialist trick to split China and refused to sign the convention. How will Chinese people today allow the government to accept such an imposition?Third, there is no possibility for realization of an administrative region such as "greater Tibet area". Since the New China was founded, the central government, on the one side, has followed historical divisions, and on the other, according to the requirements of the Constitution and the Law of Regional Autonomy for Ethnic Minorities, considered the various factors for the economic, political and cultural development of the Tibetan-inhabited areas to establish eight Tibetan autonomous prefectures, one Mongolian and Tibetan autonomous prefecture, one Tibetan and Qiang autonomous prefecture, two Tibetan autonomous counties and the Tibet Autonomous Region through full discussion of people's representatives from various regions.In the past half-century, as the administrative divisions were well set, the system of regional autonomy for ethnic minorities has been gradually improved and guaranteed the equal rights of Tibetans and other ethnic groups living in the region.It has promoted national unity and social economic development and given full support by the Tibetan people and other ethnic groups.The ** Lama, however, has been insisting on the establishment of a political entity in Tibetan-inhabited areas to build an "alliance" relationship with China, requiring all other ethnic groups to move out of the so-called "greater Tibet area" and millions of people to give up their ancestral homes.This is not only an attempt to change the current relation between the central and the local government, but also a move to implement ethnic discrimination and ethnic cleansing. We must learn from the slaughters and bloodshed caused by ethnic conflicts and disputes the world over.Then why does the ** Lama insist on this groundless and impossible concept of "greater Tibet area"? There are at least two reasons. One is that many of the Tibetan people exiled with the ** Lama in 1959 are from Tibetan areas outside the Tibet Autonomous Region. The ** Lama needs to set a common illusion of "a united, independent and free Tibet" to buy these people's support. The other reason is that the claim was designed by their foreign bosses and they, as their flunkies, dare not disobey it.The ** Lama and his followers in his "government in exile" have often expressed their recognition of the Simla Conference. Therefore, the so-called "greater Tibet area" in essence is "semi-independent" or in "disguised independence", which aims to serve the open and complete "Tibet Independence" and disunite a quarter of China's territory in future.But the ** Lama and his alike do not really understand that the political claims they make against historical development and reality to please their foreign bosses, no matter under what splendid banners, are only "medieval fantasies" that go against the time and the interests of Tibetan people as well as people of all ethnic groups in China. The Chinese government will not be fooled!

Clashes erupt between members of the ethnic Chinese community and Italian riot police in Milan April 12, 2007. [Reuters]China has made representations to the Italian government after at least 10 Chinese nationals were injured during a clash with local riot police in Milan on Thursday, the Foreign Ministry said on Friday. "We hope the Italian side deals fairly with the issue and seriously considers the justified demands of local Chinese nationals and takes real measures to protect their legitimate rights and interests," a statement on the ministry's website said. The conflict was sparked by a dispute over parking between a local Chinese woman and a police officer. The woman was detained after the argument turned into a physical clash, according to the Foreign Ministry. The situation escalated when hundreds of local Chinese protested over the detention of the woman, which led to the conflict. Of the Chinese nationals injured in the clash, five have been released from hospital after treatment, the ministry said. The scuffle broke out in the city's busy Chinatown area. Protesters reportedly threw plastic bottles and rubbish bins at police armed with batons. "It is not right for a violation of road regulations to cause this," Milan's mayor Letizia Moratti was quoted as saying. "This cannot be justified." Protesters complained about the police violence, with some saying one of the demonstrators had been pistol whipped. The ministry said in the statement that the situation had eased. 

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BEIJING, March 11 (Xinhua) -- China has published a draft management regulation on lotteries and is asking for the public's opinions.     If officially issued, it would be the country's first national management regulation on lotteries since the country gave the green light to its lottery industry in 1987.     The solicitation of public opinion will last through March 28, and the regulation will be issued later this year. There is no fixed date so far.     "The regulation will enhance supervision of the fast-growing lottery industry and stamp out fraud, which has been on the rise since the country launched its first lottery two decades ago," said a report on the Legislative Affairs Office of the State Council website.     Currently, China has a provisional regulation on the management of lottery distribution and sales. It was issued by the Ministry of Finance in 2002.     According to the proposed draft, carried by the website, no individual, organization or government department could sell lotteries without permission from the State Council. The China Welfare Lottery Administrative Center and the sports lottery administrative center of the China General Administration of Sport, both state-run, are the only two legitimate lottery outlets.     Public hearings will be held along with expert consultation before new lotteries are set up.     The draft requires lottery vendors to keep the identity of lottery winners confidential. It also demands transparency of money taken in and how it is spent on a regular basis.     Lottery funds should cover lottery prizes and management funding for lottery sellers. The rest, should be spent on the improvement of public welfare, according to the draft, quoting that a percentage of the revenue would be decided by State Council financial departments.     Individuals or government departments violating the regulation by selling lotteries unauthorized by the State Council would be fined and face criminal charges. Their illegal gains would be confiscated, it said.     Lotteries have generated huge economic and social returns in China over the past two decades. The country had issued 363 billion yuan (49 billion U.S. dollars) of lottery tickets through 2006. More than a third of the proceeds were spent on public welfare, such as the development of public sports facilities, education and health care for the handicapped.

A Chinese national flag is raised atop a house, standing in the centre of a ten-metre-deep pit dug by the real estate developter, in southwest China's Chongqing Municipality, on March 21, a day before the deadline for the owner to move out sentenced by local court. [newsphoto] A photo of the solitary building has been circulating on the Internet, where it has been dubbed "the coolest nail house in history" a translation of a Chinese metaphor for a person who refuses to move from their home. A local court set a deadline of Thursday for the couple to move out. But the house remained intact on Friday afternoon. The owner of the house, Yang Wu, 51, used two steel pipes to climb up to his castle from the construction pit on Wednesday afternoon something most people would have found difficult, but an easy maneuver for the former martial arts champion. Two men walk past a house on a mound in the middle of a construction site in Chongqing on Thursday. A couple has refused to move out of their two-storey home, which is now the only building left standing in a 10-meter-deep pit. APHe carried a national flag and banner reading "No violation of legitimate private property", which he hung from the top of the house. Local residents look at a two-storey home, which is now the only building left standing atop a mound in a 10-meter-deep construction pit in Chongqing March 22, 2007. [newsphoto]With his relatives' help, he also took two gas bottles, mineral water and other necessities. Water and electricity supplies were cut off long ago. Yang's wife, Wu Ping, remained outside the house, answering questions from the media. She said they had not lived in the house for two and a half years. The building, formerly a restaurant with a floor space of 219 square meters, is located in Jiulongpo District. The local government plans to build a shopping mall and apartments on the site. More than 200 households were moved from the area in the past three years to make way for the development. But the couple refused to move because they were not satisfied with the compensation offered: 3.5 million yuan (3,000). Wu said they wanted a property of the same value, because the compensation money would not cover the cost of an apartment of the same size in that location. After negotiations between the couple and the local government reached a stalemate, the government took the matter to court in January. On Monday, the Jiulongpo District court ordered the couple to move out by Thursday. According to the court ruling, the couple would be forcibly removed if they did not move out of the house by the deadline. No action had been taken on Friday. Shanghai-based China Business News said an eviction of this nature would create unwanted attention for the government just after the Property Law was passed. It will come into effect on October 1. Property law expert Zhao Wanyi was quoted by Beijing Evening News as saying he was pleased that citizens were learning to safeguard their rights through the legal system. But he said it was a concern that by refusing to move out without adequate compensation, the couple could be accused of abusing their individual rights. "There is no absolute right," he said. Judge Li, whose court sent the notice, told the media on Thursday evening that the court would "follow lawful procedures to deal with the matter", but he refused to say when.

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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.