BEIJING, Dec. 30 (Xinhua) — By the end of November, cumulative total indirect cross-strait trade had exceeded 700 billion U.S. dollars since the Chinese mainland’s opening-up in the late 1970s,marking a new era of deeper and wider economic cooperation across the Taiwan Strait.

    Statistics from the mainland show that for January-November 2007, the indirect trade between the mainland and Taiwan reached 113 billion U.S. dollars, up 14.9 percent year-on-year.

    ”The mainland has become the largest export market and largest contributor to the favorable balance of trade for Taiwan,” said Ye Kedong, deputy director of the Taiwan Affairs Office of the State Council.

    In the first 11 months of this year, 2,993 Taiwan-funded projects, with an actually utilized investment of 1.43 billion U.S. dollars, were approved by the mainland. By the end of November, the mainland had drawn some 45.33 billion U.S. dollars of cumulative direct investments from Taiwan.

    Statistics from the Taiwan authorities show that, from this January to October, Taiwan traders invested a record 7.66 billion U.S. dollars in the mainland, and the full-year figure was expected to reach 10 billion U.S. dollars. This compares with a cumulative amount of almost 70 billion U.S. dollars in the past 20years, indicating a recent rise in interest from Taiwan.

    Recently, the number of applications from Taiwan traders to invest on the mainland doubled, causing a backlog of work among the officials with the local investment approval committee.

    Taiwan merchants showed more interest in the comparatively undeveloped central and western areas in 2007. Western provinces and municipalities, including Guangxi, Guizhou and Chongqing, attracted far more investment from Taiwan than before.

    The investment trend has changed as markets in the developed eastern coastal areas are becoming saturated while other areas are all showing rapid, sound economic development, said Tang Wei, an official with the Ministry of Commerce in charge of trade affairs between the mainland and Taiwan, Hong Kong and Macao.

    ”Move westwards” and “expand northwards” are among the most frequently used phrases by Taiwan merchants recently, reported the Taiwan-based China Times in September.

    Since 2006, the mainland has adopted policies and measures to limit exports of products made in energy-intensive, high-pollution facilities and to promote the transformation and upgrading of the export processing trade.

    Meanwhile, the improved economic environment and the mainland’s new policy on trade have helped Taiwan traders to improve the overall investment arrangements and encouraged them to explore new industries, including high technology, new materials and services.

    Although the manufacturing industry was still the top activity in the cross-strait economic cooperation, investments in primary and tertiary industries both rose in the first three seasons.

    Investment in real estate and farming, fishing and forestry increased by 32.4 percent and 35.2 percent, respectively, while investment in architecture led with a hike of 97 percent.

    Services, especially product services and business and commercial services, became a newly preferred type of business among Taiwan merchants, said professor Li Fei of Xiamen University in Fujian Province.

    During 2007, the mainland issued policies to promote cross-strait cooperation in various sectors, including transportation (roads, shipping and aviation), farming, television series, arbitration and many others.

    The policies were believed to have been significant factors in cross-strait economic cooperation.

    BEIJING, Dec. 30 (Xinhua) — China’s Ministry of Finance said on Sunday that it would levy export taxes on wheat, corn, rice, soybeans and various processed grains in 2008.

    The move is apparently aimed at reining in surging domestic prices, which have driven up the inflation rate, and it comes just a week after China scrapped tax rebates for grain exports.

    The export tax rates will range from 5-25 percent and affect 57types of grain and grain products.

    The rates for wheat and wheat products are 20 percent and 25 percent, respectively. The rate for corn, rice and soybean is 5 percent, while that for processed corn, rice and soybean products is 10 percent.

    The move “will contribute to preventing the country from importing high international grain prices and will lower price expectations in the domestic market,” said Cheng Guoqiang, a senior researcher with the State Council think tank — the Institute of Market Economy, Development Research Center of China’s cabinet

    Several factors have driven up global grain prices this year: rising demand, adverse weather in key growing nations and increased use of grains for fuel.

    On the prospect of rising global demand, soybean prices have surged by about 75 percent since the beginning of the year. Wheat prices hit a record high in Chicago on strong global demand and shrunken output after bad weather hit the world’s major producers such as Australia and Canada.

    Buoyed by demand from the ethanol industry, prices of corn have also risen. By Friday on the Chicago Board of Trade, the price of corn for March delivery rose to 4.55 U.S. dollars a bushel from 4.43 dollars the previous week.

    A week ago, the ministry said that it would scrap a 13 percent export tax rebate on 84 categories of grain and grain products, effective Dec. 20. Those rebates, together with high international grain prices, have boosted Chinese grain exports this year.

    The nation exported 4.87 million tons of corn and 400,000 tons of soybeans in the first 11 months of 2007, up 85.3 percent and 23.8 percent, respectively, from the previous year. Exports of rice rose 5.8 percent to 1.13 million tons and exports of wheat soared 206.51 percent to 1.85 million tons.

    Bumper grain crops this year, however, offer hope of slower price hikes in the world’s most populous nation. Grain production, which has increased continuously since 2004, is expected to exceed500 million tons this year.

    Analysts said discouraging grain exports would be a new option to limit domestic grain prices since the lengthy grain production cycle could not be changed.

    Soaring food prices drove the consumer price index (CPI) to an 11-year high of 6.9 percent in November. The prices of food, which has a 33 percent weighting in the CPI, soared 18.2 percent last month.

    The high inflation rate, well above the target of 3 percent set by the government for 2007, has become a major issue for the government, which is concerned about its impact on the poor.

    The grain tax move was the latest in a series of government efforts to ease the impact of higher consumer prices, including quintupling the tax on arable land used for non-farm purposes and lifting the individual income tax threshold.

    Analysts said the government had given the tax system a larger role in protecting the area of land under cultivation, which has shrunk to about 122.6 million hectares, only slightly above the baseline of 120 million ha that has been designated by the government as necessary to provide sufficient food. South-east coastal regions, which used to be major grain producers, have become major consumers as that region of the country has industrialized.

    From Dec. 1, the country began to charge foreign-invested companies, which had been exempt from the land use tax, as much as their domestic peers. The government also ended the no-fee policy for the construction of railways, airport runways and parking lots and imposed a charge of 2 yuan per square meter on such projects.

    Meanwhile, water supply, which affects the harvest, has risen high on the agenda of Chinese leaders, especially with drought affecting more of the country. On Friday, workers began tunneling beneath the Yellow River in eastern Shandong Province as part of the massive south-to-north water diversion project.

    The 7,870-meter tunnel was designed to annually divert 442 million cubic meters of water from the Yangtze River to the northern banks of the Yellow River. Upon completion, the northern areas, which produce one-third of the country’s grain output and gross domestic product, with about 20 percent of the country’s average per capita water resource, would benefit, said Zhang Jirao, director of the South-North Water Diversion Project Office of the State Council.

    Bearing in mind that rising food prices added to consumers’ financial burdens, especially for low- and medium-income households, China’s top legislature on Saturday adopted an amendment to raise the individual income tax threshold from 1,600 yuan (about 220 U.S. dollars) a month to 2,000 yuan.

    Also on Saturday, the Ministry of Finance announced that it would offer provisional meal subsidies totaling 50.76 million yuan to college students to help stabilize school canteen prices.

    JINAN, Dec. 30 (Xinhua) — Japanese Prime Minister Yasuo Fukuda Sunday afternoon wrapped up his four-day China tour, which was seen as a “herald of spring” for China-Japan ties, after paying respect to Confucius in the ancient philosopher’s hometown.

    The visit to China was “very substantial and meaningful,” Fukuda said in an interview at the airport before leaving Jinan, capital of east China’s Shandong Province.

    He said he had made “rich and in-depth” discussions with Chinese leaders, talking about Japan-China ties from different aspects, and covering “extensive topics.”

    ”It is sure that Japan and China can contribute more to Asia and the world at large if we cooperate with each other,” Fukuda said.

    He pledged to further enhance mutual understanding and cooperation between the two countries. “We have the responsibility to cement our ties.”

    On Sunday morning, Fukuda visited the Temple of Confucius in Qufu, which he said left him “deep impression.”

    ”I am so excited to come to the place where the Analects of Confucius was written,” Fukuda said.

    Confucius is a philosopher admired by both peoples in China and Japan. The works of Confucius, especially the Analects of Confucius, a book compiling his life-long teachings by his students, are quite popular in both countries.

    The visit to the Confucian temple demonstrated “the common cultural background between the Chinese people and Japanese people,” said Mitsuo Sakaba, press secretary of Japanese foreign minister.

    Fukuda is the first incumbent Japanese prime minister that visited the hometown of Confucius. Former Japanese Prime Minister Tomiichi Murayama, who served in the position in mid-1990, visited Qufu in 2002.

    Fukuda’s visit to the hometown of Confucius was a highlight of his China trip, Zhu Feng, a professor on international relations at Beijing University, told Xinhua.

    China and Japan enjoy similarity in culture, which will exert important influence on the long-term development of China-Japan ties, he said.

    Before leaving the Temple of Confucius, Fukuda signed four Chinese characters, “wen gu chuang xin”, on a visitors’ book, a coinage of the Prime Minister probably inspired by Confucius’ teaching of “wen gu er zhi xin” which calls people to gain new insights through reviewing old things.

    The last two characters of “chuang xin” in Fukuda’s coinage means making innovations, implying the prime minister’s proposal to develop a “creative partnership” between the two countries, which Zhu said could set a note for the future development of bilateral ties.

    ”It indeed requires creative thinking and solutions to address issues on history, economy, security and others so to build such a partnership between the two nations,” Zhu said.

    Fukuda’s China trip came amid a warming China-Japan ties. It followed the “ice-breaking” visit by then Japanese Prime Minister Shinzo Abe in October last year and Chinese Premier Wen Jiabao’s “ice-thawing” trip to Japan in April.

    China is Fukuda’s third overseas destination as prime minister besides the United States and Singapore.

    During his stay in Beijing, he met with Chinese President Hu Jintao and top legislator Wu Bangguo, respectively, and held talks with Chinese Premier Wen Jiabao.

    The two sides agreed that President Hu will pay a visit to Japan next spring, which will be the first visit to Japan by Chinese head of state in 10 years after former Chinese President Jiang Zemin visited Japan in 1998.

    In his talks with Premier Wen Jiabao, Fukuda stated four “nos” on the Taiwan issue, saying Japan would give no support to the claims of “one China, one Taiwan”, “Taiwan independence” or Taiwan authorities’ attempts to join the United Nations and to seek UN membership through “referendum”.

    The two reached consensus on the East China Sea issue, agreeing to continue the consultation of the vice-ministerial level so to seek workable solutions.

    Fukuda said Japan would “very earnestly” reflect on the “agonizing part of history” and continue to follow the path of peaceful development in the hope of establishing “forward-looking China-Japan relations”.

    The two leaders also agreed to invite some 4,000 youths to take part in bilateral exchanges each year since 2008, which has been designated as a year of friendship between the young people of the two neighboring countries.

    Aside from talks with Chinese leaders, Fukuda delivered a speech at Beijing University, played baseball with Premier Wen and visited a primary school before heading for Tianjin, a northern port city, where he visited a factory of Tianjin FAW Toyota Motor Co. Ltd.

    BEIJING, Dec. 30 (Xinhua) — China’s Ministry of Finance said on Sunday that it would levy export taxes on wheat, corn, rice, soybeans and various processed grains in 2008.

    The move is apparently aimed at reining in surging domestic prices, which have driven up the inflation rate, and it comes just a week after China scrapped tax rebates for grain exports.

    The export tax rates will range from 5-25 percent and affect 57 types of grain and grain products.

    The rates for wheat and wheat products are 20 percent and 25 percent, respectively. The rate for corn, rice and soybean is 5 percent, while that for processed corn, rice and soybean products is 10 percent.

    The move “will contribute to preventing the country from importing high international grain prices and will lower price expectations in the domestic market,” said Cheng Guoqiang, a senior researcher with the State Council think tank — the Institute of Market Economy, Development Research Center of China’s cabinet

    Several factors have driven up global grain prices this year: rising demand, adverse weather in key growing nations and increased use of grains for fuel.

    On the prospect of rising global demand, soybean prices have surged by about 75 percent since the beginning of the year. Wheat prices hit a record high in Chicago on strong global demand and shrunken output after bad weather hit the world’s major producers such as Australia and Canada.

    Buoyed by demand from the ethanol industry, prices of corn have also risen. By Friday on the Chicago Board of Trade, the price of maize for March delivery rose to 4.55 U.S. dollars a bushel from 4.43 dollars the previous week.

    A week ago, the ministry said that it would scrap a 13 percent export tax rebate on 84 categories of grain and grain products, effective Dec. 20. Those rebates, together with high international grain prices, have boosted Chinese grain exports this year.

    The nation exported 4.87 million tons of maize and 400,000 tons of soybeans in the first 11 months of 2007, up 85.3 percent and 23.8 percent, respectively, from the previous year. Exports of rice rose 5.8 percent to 1.13 million tons and exports of wheat soared 206.51 percent to 1.85 million tons.

    Analysts said discouraging grain exports would be a new option to limit domestic grain prices since the lengthy grain production cycle could not be changed.

    Soaring food prices drove the consumer price index (CPI) to an 11-year high of 6.9 percent in November. The prices of food, which has a 33 percent weighting in the CPI, soared 18.2 percent last month.

    The high inflation rate, well above the target of 3 percent set by the government for 2007, has become a major concern of the government, which is concerned about its impact on the poor.

    Bumper grain crops this year, however, offer hope of slower price hikes in the world’s most populous nation. Grain production, which has increased continuously since 2004, is expected to exceed 500 million tons this year.

    JOHANNESBURG, Dec. 29 (Xinhua) — China and South Africa will push their relations to a new high by holding a series of events in 2008 to mark the 10th anniversary of their diplomatic ties, China’s ambassador to South Africa said Saturday.

    Nearly 200 representatives of Chinese living in the African country met Saturday night in Johannesburg to celebrate the anniversary. They made a retrospection over the opportunities brought to them by the forging of the links between the two countries.

    Noting the huge contributions by the Chinese living in South Africa to the bilateral ties, Ambassador Zhong Jianhua said they have given away money and other stuffs in donations to local people beside bringing them high-quality Chinese commodities with competitive prices.

    What they have done here has helped to deepen understanding and friendship between the two peoples and to consolidate and boost relations of the two countries, he said.

Fukuda delivers speech at Peking University
Fukuda: 4 “no”s on Taiwan issue

    QUFU, Shandong Province, Dec. 30 (Xinhua) — Japanese Prime Minister Yasuo Fukuda paid respect to Confucius at the hometown of the ancient Chinese philosopher Sunday morning before wrapping up his four-day China tour, which was seen as a “herald of spring” for China-Japan ties.

Japanese Prime Minister Yasuo Fukuda (C, front) displays his inscription during his visit to the Temple of Confucius, a UNESCO World Heritage site in Qufu, east China’s Shandong Province, on Dec. 30, 2007. Yasuo Fukuda ended his visit to China on Sunday. The inscription written in Chinese characters means a teaching of Confucius that calls people to gain new insights through reviewing old things. (Xinhua Photo)

    Fukuda and his wife Kiyoko bowed in front of a statue of the great sage after arriving at the Temple of Confucius, a UNESCO World Heritage site in Qufu, Shandong Province in east China.

    During their one-hour stay, they also visited the places where Confucius taught students some 2500 years ago, and watched a traditional ceremony performance commemorating the ancient philosopher.

    Before leaving, Fukuda signed four Chinese characters, “wen gu chuang xin”, on a visitors’ book, a coinage of the Prime Minister probably inspired by Confucius’ teaching of “wen gu zhi xin” which calls people to gain new insights through reviewing old things.

    Fukuda told reporters the visit to the hometown of Confucius left him “deep impression”.

    He said he hoped to use the visit as an opportunity to deepen understanding and expand exchanges between the two peoples, and further promote the strategic, mutually-beneficial ties between Japan and China.

    ”My visit to China this time is very meaningful. I had in-depth discussions with Chinese leaders,” Fukuda said after visiting the Confucian temple.

Japanese Prime Minister Yasuo Fukuda (C) pays a visit to the Temple of Confucius, a UNESCO World Heritage site in Qufu, east China’s Shandong Province, on Dec. 30, 2007.  (Xinhua Photo)

    Fukuda’s visit to the hometown of Confucius demonstrated “the common cultural background between the Chinese people and Japanese people,” said Mitsuo Sakaba, press secretary of Japanese foreign minister.

    Confucius is a philosopher admired by both peoples in China and Japan. The works of Confucius, especially the Analects of Confucius, a book compiling his life-long teachings, are quite popular in Japan.

    Fukuda is the first incumbent Japanese prime minister that visited the hometown of Confucius. Former Japanese Prime Minister Tomiichi Murayama who served in the position in mid-1990, visited Qufu in 2002.

    The Temple of Confucius in Qufu, first built in 478 B.C., is the prototype of some 2,000 Confucian temples all over the world, including Japan, the Republic of Korea, the United States, Singapore and Vietnam.

    Fukuda arrived in Shandong province on Saturday afternoon from Tianjin, a port city neighboring Beijing, where he visited a factory of Tianjin FAW Toyota Motor Co. Ltd.

    Fukuda’s trip, which is taking place three months after he took office, is another important step to boost bilateral ties, following the “ice-breaking” visit by then Japanese Prime Minister Shinzo Abe in October last year and Chinese Premier Wen Jiabao’s “ice-thawing” trip to Japan in April.

    It has been the third overseas trip of Fukuda since he took office three months ago. Prior to his China trip, he visited the United States and Singapore.

Baseball game in Beijing part of Fukuda’s “spring-ushering” visit

    BEIJING, Dec. 29 (Xinhua) — An early-morning baseball game between Chinese Premier Wen Jiabao and Japanese Prime Minister Yasuo Fukuda became another light-hearted anecdote during Fukuda’s visit to China, which has been dubbed a trip “ringing in the spring of Japan-China relations”. Full story

Premier Wen elaborates “three bases” for healthy China-Japan ties

    BEIJING, Dec. 29 (Xinhua) — Chinese Premier Wen Jiabao elaborated on Saturday the “three bases” for healthy China-Japan relations, underscoring the principle that people of the two nations were the real foundation of bilateral ties. Full story 

Japan: Japanese PM “very happy” with talks with Chinese leaders

    BEIJING, Dec. 29 (Xinhua) — Visiting Japanese Prime Minister Yasuo Fukuda was “very happy” with Friday’s talks with Chinese leaders, said a Japanese official on Saturday. Full story

Chinese leaders hold “heart-to-heart” talks with Japanese prime minister

    BEIJING, Dec. 28 (Xinhua) — Chinese Premier Wen Jiabao held “heart-to-heart” talks with Japanese Prime Minister Yasuo Fukuda on Friday, and both stressed joint efforts to promote bilateral relations, saying “a spring has come” for China-Japan ties.

    Later in the afternoon, Chinese President Hu Jintao and top legislator Wu Bangguo met with Fukuda, respectively, after he spoke at the elite Peking University.