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Chinese officials said water quality was improving in the country's third-largest lake, choked by a polluted slick of algae, but experts warned that tap water in the area was still not safe, state media reported on Saturday. Taihu Lake, in the southern province of Jiangsu, has been struck by a foul-smelling canopy of algae that left tap water undrinkable for more than 2.3 million residents of nearby Wuxi and prompted a run on bottled water at local supermarkets. Residents said the government was telling them it was safe to drink boiled water, but complained that it still had an unappealing green film on top. Environment experts said it was unlikely to be fit to drink. "Although quality of the water supply has improved significantly on Friday and now it is safe for washing hands or clothes, it still takes some time to become drinkable," the Zhang Xiaojian, an environment specialist at Tsinghua University in Beijing said. Algae blooms can develop in water that is rich in nutrients, often because of run-off from heavy fertiliser use, industrial waste and untreated sewage. Officials have invoked emergency measures, diverting the Yangtze river and seeding clouds to provoke rainfall, to try to flush out the algae. Heavy rainfall is also expected in the area in the next few days. Residents of Wuxi said the algae, which they said smelt like rotten meat, was driving a roaring trade at McDonald's and KFC fast-food outlets in the city. "Here they fry food," said a company manager named Zhao as he queued at KFC. "I can't eat dumplings or noodles because they would be cooked in water and it's too expensive to use bottled water."

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.

Geneva - China urged the United States on Friday to correct its anti-dumping and anti-subsidy measures targeting Chinese coated paper, reiterating that these measures violate World Trade Organization (WTO) rules.In consultations held in Geneva, Chinese officials questioned the consistency of the US measures with WTO regulations, and urged the United States to consider China's concerns seriously and correct its measures, said a statement from the Chinese WTO mission.The two sides also clarified some matters in the dispute and agreed to continue their contact on the issue, the statement said.Friday's consultations were held under the WTO's dispute settlement mechanism. China brought the case to the WTO's Dispute Settlement Body on September 14.According to Chinese trade officials, from November 2006 to July 2007, the United States launched five anti-dumping and anti- subsidy investigations into Chinese coated paper and steel tubes, which involved 635 Chinese enterprises with 70,000 employees and goods worth US0 million.Five dual investigations against Chinese products in less than a year was unprecedented in the history of world trade, the officials said.According to the Chinese Ministry of Commerce, the US decision not only violated WTO rules, but also went against a 23- year-old US bipartisan policy.

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A shop assistant checks hundred yuan bank notes at a shop in Xiangfan, central China's Hubei province in this file photo. [Reuters]A senior U.S. Treasury official warned Congress on Thursday that a legislative drive to force China into letting its currency rise in value more quickly could backfire and do damage to the U.S. economy. Deputy Assistant Treasury Secretary Mark Sobel warned a House of Representative trade subcommittee that U.S. lawmakers risked creating a perception abroad that the United States is becoming "an isolationist nation" that does deserve foreign investment. "If the United States adopts currency legislation that is perceived abroad as unilateralist, investors' confidence in the openness of our economy could be dampened, diminishing capital inflows into the United States and potentially putting upward pressure on interest rates and prices," Sobel said. However, Ways and Means Trade Subcommittee Chairman Sander Levin, a Michigan Democrat, objected to the administration's description of congressional proposals as protectionist, and other lawmakers testifying on Thursday argued China's "unfair" trade practices required a strong U.S. legislative response. Two Senate committees have already approved legislation that aims to equip Treasury with new tools to pressure China into letting its yuan currency rise faster in value, which U.S. manufacturers say is necessary to eliminate an unfair price advantage for Chinese-made goods. Rep. Tim Ryan, an Ohio Democrat, said Congress should pass an even stronger bill -- such as one he has crafted with Rep. Duncan Hunter, a California Republican -- that would allow U.S. companies to seek countervailing duties against China's undervalued exchange rate. "Passage of a weak bill will only lead to many more years of inaction by the administration, loss of jobs and loss of critical U.S. manufacturing capability. We need legislation that will lead to action," Ryan said. A Republican committee member, Rep. Thomas Reynolds of New York, said there was bipartisan support for taking a tougher line with China than Treasury has followed so far. "Be ready for the fact that there's a boiling point in the Congress coming from the people of America saying we need to do better than what's happened so far," Reynolds said. After the hearing, Levin told reporters that House leaders would decide when Congress returns in September the best way to proceed with China currency and trade legislation. "I think we will look at all options," including the Ryan-Hunter bill, Levin said. He expressed confidence that Congress could craft legislation that presses China on the currency issue without violating World Trade Organization rules. But Treasury Secretary Henry Paulson has made clear that he does not want the additional legislative tools and that he prefers to seek a faster pace of economic reform in China through discussion, especially in a "strategic economic dialogue" that he initiated with Beijing last December. Sobel's appearance before the House subcommittee was a bid by Treasury to wave off more legislation in Congress, where anger at China has been mounting and has helped fuel the bid to force Beijing into faster currency appreciation. "We appreciate the frustrations of Congress with the slow pace of Chinese reform. Indeed, we strongly share those frustrations," Sobel said. "Yet we continue to believe that direct, robust engagement with China is the best means of achieving progress." Paulson has just returned on Wednesday night from his fourth trip to China since taking over Treasury just over a year ago. Again he was unable to persuade Chinese officials to offer any commitment to speed up currency reforms. Paulson told reporters in Beijing that Chinese officials whom he met, including President Hu Jintao, intended to move ahead with economic reforms including on currency but that the country's economic stability was critically important. The failure to get firm Chinese promises on currency has fed into a sense in Congress that China does not play fair on trade rules. Sobel said Paulson had "conveyed a strong message about the need for far more vigorous action by China to correct the undervaluation of renminbi (RMB), take immediate action to lift the RMB's value and achieve far greater currency flexibility." China's yuan is also known as the renminbi. David Spooner, the Commerce Department's assistant secretary for import administration, echoed some of Sobel's worry that Congress's actions could rebound against the United States because they might violate global trade rules. "I must make clear that the Department of Commerce is deeply concerned that the other legislative proposals that have been advanced to date raise serious concerns under international trade rules," Spooner said, adding that could trigger a global cycle of protectionist legislation. Similarly, the U.S. Trade Representative's deputy general counsel, Daniel Brinza, warned that Congress needed to beware approving legislative proposals that did not comply with rules set by the World Trade Organization. Doing so would undermine U.S. credibility when it tries to persuade others to abide by WTO rulings, Brinza said.

Viruses wreaked havoc on at least 1 million personal computers during the weeklong National Day holiday, according to Jiangmin Co, a leading Chinese antivirus company.The company's monitoring system detected that more than 118,000 computers crashed on October 6 alone."Viruses have been extremely active during the long vacation because more people chose to stay at home and surf the Internet, shopping online or playing online games," He Gongdao, an antivirus expert at Jiangmin, said on Monday."More than 24,000 types of viruses were detected during the week," he said.He said computer users should be more aware of viruses that could be passed on through movable disks.Another antivirus company, Kingsoft, alerted the online community to a new virus it dubbed the "ultimate killer to antivirus software".The virus, a kind of Trojan, is capable of hijacking all kinds of antivirus software when it successfully attacks a computer."It will also automatically search the keywords, including 'antivirus, Kingsoft and Kaspersky', and coercively close the programs, Li Tiejun, an antivirus software engineer of Kingsoft, said."The virus has been supported and spread by a group of people who have developed a systematic and standardized business operation to make profit," Li said. Virus controllers could detect the IP addresses of each computer, he added.The new virus, which affected about 40,000 computers a day, will remain a critical threat to many computer users even after the holiday, Li said.According to the latest survey conducted by the Ministry of Public Security, China has encountered a rising Internet security problem over the past three years, mainly triggered by a growing number of profit-driven computer virus writers, hackers and illegal traders.Some 65.7 percent of 15,000 companies polled had suffered Internet security problems from May last year to May this year, 11.7 percentage points higher than before.

BEIJING - The Chinese Academy of Social Sciences (CASS), the country's top think tank, published its eighth annual report on Monday and introduced a new international strategy.The report - "China's Modernization 2008" - proposed a brand new concept, the so-called "Peace Dove Strategy".The strategy, with the principle of "Follow the UN Charter and Promote World Peace", calls for the building of a favorable international environment for China's modernization.The "Peace Dove Strategy" makes the United Nations the head of the Dove.Asian nations are the foreside; the Asia-Pacific Economic Cooperation is the eastern wing, and the proposed "Asia-Europe Economic Cooperation", which is upgraded from the existing Asia-Europe Meeting, is the western wing.South America, Oceania and Africa bring up the rear.The strategy, which centers on Asia and faces the world, calls for cooperation of all member nations on an equal, mutually beneficial basis.Under the strategy, China will optimize the structure of its international modernization strategy, increase its national capacity in international modernization, and improve the international environment for the country, according to He Chuanqi, head of the CASS Center on the Study of China's Modernization.The strategy was created drawing upon international experience of the past 300 years and the history and realities of China's international modernization, the official said.The report has been published and distributed as a single volume by the Beijing University Publishing House.

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BEIJING -- China and Japan will start the seventh round of talks on the East China Sea issues in Tokyo, Japan on Thursday, Foreign Ministry spokesman Qin Gang Tuesday told a regular press conference. Director of Chinese Foreign Ministry Department of Asian Affairs Hu Zhengyue and head of the Japanese Foreign Ministry's Asian and Oceanian Affairs Bureau Kenichiro Sasae will attend the talks as top negotiators, according to Qin. China and Japan were divided by the issue of the demarcation of the continental shelf of the East China Sea. Qin said China insisted on shelving the disputes and engaging in joint development, and hoped that related issue would be properly solved through negotiation. "We expect to make in-depth and full discussion with Japan during the upcoming seventh round of talks," the spokesman noted.

BEIJING -- Thirty-one provinces, autonomous regions and municipalities on the Chinese mainland had reshuffled local Party committees through internal elections for Party officials within a year ending last June.Moreover, 408 cities, 2,763 counties and 34,976 townships have elected new Party committee leadership from early 2006 to April this year, the Organization Department of the CPC Central Committee said here Thursday.This has made good preparation for the upcoming 17th CPC National Congress.The positions in the new Party committees at the provincial, regional and municipal levels were reduced by 21 compared with previous ones. The positions were cut by 149 at the city level, by 859  at the county level, and by 34,368 at the township level.Meanwhile, the local Party leaders are younger and well educated, particularly at the provincial level. The age of leaders in CPC provincial committees average 52.9 years old, half a year younger than their predecessors, and 91.6 percent of them received college education, 14 percentage points higher than before.The CPC Central Committee has taken a series of measures to make the election in local Party leadership fair and clean, the department said.In 296 townships of 16 provincial-level regions across China, leaders of Party committees were directly voted by CPC members as pilot projects.The ratio between the candidates and the elected officials reached 100:89 in the election at the provincial level and 100:88 to 100:85 at the county-level.The candidates also received strict scrutiny from the Party discipline departments to ensure they are clean from corruption or scandals.A hot line was set to receive tip-off about malpractice and corrupt candidates during the local Party leadership reshuffle.Thus far, 260 officials have been punished for malpractice.

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DAVOS - China will endeavor to maintain steady and fairly fast economic growth and deepen the reform of the economic system, Chinese Vice-Premier Zeng Peiyan said here Thursday."To prevent overheating of the economy and inflation is our top priority for macro control this year. We will pursue a prudent fiscal policy and tight monetary policy to ensure general balance between demand and supply and make the economy better structured," said Zeng at a session of the five-day World Economic Forum (WEF) Annual Meeting.At the session of "special message and conversation" in his honor, Zeng said China will work on transforming the model of growth."In promoting economic growth, the focus of our efforts will be shifted from relying mainly on investment and export to stimulating consumption and steadily increasing the consumption rate; from relying mainly on manufacturing industry to promoting the growth of agriculture and services industries and increasing the share of the service sector in economic output," he said.Zeng said China will deepen economic structural reforms, encourage sectors of different ownership to compete as equals and develop together.He also made it clear that China seeks promotion of sustainable development.China has launched a campaign of energy conservation and emission reduction to meet the targets set for 2010 including a 10- percent reduction in the 2005 levels of (sulfur dioxide) SO2 emission and chemical oxygen demand (COD), he said."We are accelerating the pace to eliminate the backward production styles of factories with high energy consumption and pollutant emission, step up the construction of waster water and sewage processing facilities and vigorously develop energy-saving and land-saving housing, and fuel-efficient and environmentally friendly automobiles," he added.The air conditioning of buildings will be kept at an appropriate level, and energy-saving bulbs will be used throughout the country, he said.In his speech, Zeng noted that the world today needs to address many problems facing the growth of the world economy.These problems include greater uncertainties for global economic growth, the rising prices of primary products, resurfacing of trade protectionism, and growing concerns over global climate change, he said."The plummeting of stock markets throughout the world in the past few days speak eloquently of how much the market is worried about a possible slowdown or even recession of the US economy," he said.Financial risks spread faster than before, and one single financial and economic event in a country could cause chain reactions in other parts of the world, he said.The sub-prime mortgage crisis which broke out in the United States has hurt many transnational financial institutions and its adverse impact on countries concerned has start to be felt, he elaborated.He expressed his concerns that the prices of primary products are still rising and have raised production cost and consumer spending and led to more inflationary pressure in the world.Turning to trade protectionism, the Chinese vice-premier said that some countries have raised non-tariff trade barriers and imposed more restrictions on foreign investment.Such practices hurt the interests of exporters, producers, investors, importers and consumers alike and will ultimately harm the common interests of all countries, he said.He promised that China are ready to work with the international community to address these risks and meet the challenges and contribute to economic stability and sustainable development in the world.He noted that since joining the World Trade Organization, China has honored its commitments.China's average tariff level has dropped from 15.3 percent of the pre-accession years to the current 9.8 percent, and China has abolished non-tariff measures, he said."We will continue to promote trade and investment liberalization and facilitation," he said.While stressing that peace, development and cooperation represent the irresistible trend of the times, Zeng said China will pursue win-win cooperation with foreign nations and accommodate the legitimate concerns of other countries, especially the developing ones."We will work with all countries, international organizations and people from all walks of life to harness the power of collaborative innovation, pursue win-win cooperation, seize the opportunities together and share the benefits of development, meet challenges and work hard for global prosperity and progress," said the Chinese official.The five-day WEF annual meeting started in this Swiss ski resort on Wednesday under the principal theme of "the Power of Collaborative Innovation."The event drew the world's political and business elite, including 27 heads of state or government, and more than 110 government ministers.

XINTAI, Shandong -- Fifty million yuan (US.6 million) has been donated for miners from the two flooded collieries and their families in east China's Shandong Province by Sunday noon, according to local sources.The money shall be used for rescue work, consolation for relatives of the trapped miners, and subsidy for other miners as operation of the mines is suspended.Among the donators, the China National Coal Group Corp. was the first to offer a large amount -- one million yuan (US1,578.9). Following suit was the the adjacent Xinwen Coal mine that donated 3.2 million yuan (US1,052.6).After the accident, governments of Jinan and Qingdao, two big cities in Shandong, each donated three million yuan (US4,736.8); Jining and Laiwu, the neighboring cities of Xintai, provided two million yuan (US3,157.9) and one million yuan respectively.Individuals were also involved in the nationwide effort, among whom was Gao Runze, who donated 20,000 yuan and 10 tons of disinfectors worth about 30,000 yuan. Gao had been trapped in a flooded coal mine 58 years ago and was rescued with 30 fellows.A garbage collector Li Quan who lives in the Huanyuan residential quarter donated 200 yuan. "Many miners and their relatives helped me a lot in the past," he said, "I don't have much money but this is what I can do."Flood water swept through a 65-meter wide breach in the Wenhe River levee on August 17, inundating the Huayuan and Minggong mines, leaving 181 people trapped underground.Chinese water resources specialists have blamed the disaster largely on heavy rain and inadequate flood prevention facilities.Local government publicized a donation phone number +86 539 7837050, and old miners of Huayuan called on for donations to help miners and their families tide over the disaster.Eight pumps are busy working in the mines, piping out 4,129 cubic meters of water per hour.By 6 pm Sunday, water level in the shaft of Huayuan coal mine has dropped to 61.54 meters, 30.46 meters down from the highest level. But rescuers have to lower the water level by another 91.54 meters to reach the 172 trapped miners.In the nearby Minggong coal mine, water level has lowered to 61.92 meters.Apart from the rescue work, consolation work was also underway for the families of the trapped workers. The tragedy had a heavy blow on the company's community, and one out of every 50 families has someone trapped down the pit.Sixty family members had been hospitalized with high blood pressure or heart problems, said Huangpu Tinghua, deputy general manager of Huayuan Mining Co. Ltd.Earlier at this weekend, the families of 172 miners trapped in it had each received 2,000 yuan (US6). And officials said China would not give up on the 181 trapped miners.