Analysts fear Beijing's move may suggest a loss of faith in American government's economic policy
Tania Branigan in Beijing and Heather Stewart
guardian.co.uk, Wednesday 17 February 2010 17.11 GMT
Article history
China sold $34bn (£21.5bn) worth of US government bonds in December, raising fears that Beijing is using its financial muscle to signal that it has lost confidence in American economic policy.
US treasury figures for the period ending in December 2009 show that, following the sale, China is no longer the largest overseas holder of US treasury bonds. Beijing ended the year sitting on $755.4bn worth of US government debt, compared to Japan's $768.8bn.
Since the sub-prime crisis that began on Main Street USA grew to engulf the global economy, China's leaders have repeatedly expressed concerns about US policy. December's $34bn sell-off made only a tiny dent in Beijing's total holdings of US assets, which amount to well over $1tn when stakes in American companies, as well as treasury bills, are taken into account.
But the news intensified concerns about China's appetite for bankrolling ever-widening American deficits. Premier Wen Jiabao told reporters last year: "We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I'm a little bit worried."
When Timothy Geithner, the US treasury secretary, visited China last summer, he sought to reassure his hosts, using a speech to promise that "the United States is committed to a strong and stable international financial system. The Obama administration fully recognises that the United States has a special responsibility to play in this regard, and we fully appreciate that exercising this special responsibility begins at home."
But Allan Meltzer, an economics professor at Carnegie Mellon University, said China's bond sales should be a wake-up call for Washington. "The Chinese are worried that we have unsustainable debt levels, and we do not have a policy for dealing with it," he said.
China's sales contributed to a record drop in foreign holdings of short-term treasury bills in December: in all, net overseas holdings of short-term bills fell by $53bn. The previous record was $44.5bn in April last year.
However, there was little sign that world investors as a whole have lost their confidence in the dollar as the safe-haven currency of choice: overall, the US saw a net inflow of $60.9bn, as investors more than offset sales of short-term debt by buying longer-term securities and shares.
Japan, Britain, Luxembourg and Hong Kong made sizeable purchases, with the UK buying $24.9bn of US government debt.
Some analysts warned that it would be a mistake to read too much into one month's data, particularly since the current crisis in the eurozone makes investors' main alternative to the dollar look particularly unattractive.
David Wyss, chief economist at Standard & Poor's in New York, said: "China may not be too happy with us right now, but you have to ask: what else are they going to do with their money?"
Ho-fung Hung, author of China and the Transformation of Global Capitalism, said it was hard to tell whether China had a long-term strategy for selling US debt. "I think decision-makers know very well that any large-scale selling of US treasuries won't do any good to the Chinese economy, which still needs a sustained recovery of the US economy to pull up its export sector. Such selling will also devalue China's existing holdings of treasuries," he said.
"Dumping treasuries will also entail the problem of what to buy in return – definitely not euro or yen assets at the moment."
However, America must sell an unprecedented volume of treasuries in the coming years to finance its record deficit, and pay the cost of bailing out Wall Street and kick-starting the economy with a $900bn stimulus package. Any evidence that foreign investors are beginning to doubt Obama's promises to bring the public finances under control will spread alarm in Washington.
Wednesday, 3 March 2010
China to develop low-carbon economy ---Eileen
China's top economic planning body has confirmed the government will take concrete actions to develop a low-carbon economy after it pledged to substantially reduce carbon intensity at last year's Copenhagen Conference.
China would include the low-carbon targets in the 12th five-year plan for national economic development (2011-2015) to build an energy-saving, ecologically friendly society, the National Development and Reform Commission said in a report to the Standing Committee of the 11th National People's Congress (NPC).
The report said the government would launch a series of technological and fiscal support policies to promote the use of non-fossil, renewable energies including wind, solar, biomass, geothermal and nuclear power, aiming to increase its proportion of primary energy consumption to about 15 percent by 2020 from 9.9 percent at the end of last year.
China's installed wind power capacity reached 15 million kilowatts, with 10 million kilowatts under construction at the end of June 2009, while nuclear power under construction, installed hydro-electric power capacity and solar heating collection areas were the highest in the world, it said.
The commission was also planning to compile an emissions inventory of greenhouse gases in an effort to build a monitoring and checking system to cut carbon emissions.
The economic planner decided to curb redundant construction and industries with surplus production capacities, such as steel, cement and electrolytic aluminum, to promote the energy efficiency and environmental protection.
Another NDRC report on the transformation of the economic development pattern delivered to the standing committee called for optimizing the financial expenditure structure to increase input in public welfare and step up efforts to expand the social security coverage.
The government had drafted a plan on regional development to transfer industries in affluent eastern areas to central and western regions.
The commission said in a report that China would maintain a proper lending scale under the guidance of the Central Bank to avoid credit fluctuations and establish 1,300 rural financial institutions to encourage lending in rural areas.
The State Council announced in November that China would reduce the intensity of carbon dioxide emissions per unit of GDP in 2020 by 40 to 45 percent compared with the level of 2005.
http://www.china.org.cn/environment/2010-03/02/content_19499832.htm
China would include the low-carbon targets in the 12th five-year plan for national economic development (2011-2015) to build an energy-saving, ecologically friendly society, the National Development and Reform Commission said in a report to the Standing Committee of the 11th National People's Congress (NPC).
The report said the government would launch a series of technological and fiscal support policies to promote the use of non-fossil, renewable energies including wind, solar, biomass, geothermal and nuclear power, aiming to increase its proportion of primary energy consumption to about 15 percent by 2020 from 9.9 percent at the end of last year.
China's installed wind power capacity reached 15 million kilowatts, with 10 million kilowatts under construction at the end of June 2009, while nuclear power under construction, installed hydro-electric power capacity and solar heating collection areas were the highest in the world, it said.
The commission was also planning to compile an emissions inventory of greenhouse gases in an effort to build a monitoring and checking system to cut carbon emissions.
The economic planner decided to curb redundant construction and industries with surplus production capacities, such as steel, cement and electrolytic aluminum, to promote the energy efficiency and environmental protection.
Another NDRC report on the transformation of the economic development pattern delivered to the standing committee called for optimizing the financial expenditure structure to increase input in public welfare and step up efforts to expand the social security coverage.
The government had drafted a plan on regional development to transfer industries in affluent eastern areas to central and western regions.
The commission said in a report that China would maintain a proper lending scale under the guidance of the Central Bank to avoid credit fluctuations and establish 1,300 rural financial institutions to encourage lending in rural areas.
The State Council announced in November that China would reduce the intensity of carbon dioxide emissions per unit of GDP in 2020 by 40 to 45 percent compared with the level of 2005.
http://www.china.org.cn/environment/2010-03/02/content_19499832.htm
Senior leader calls for prevention of corruotion at source -----------------Lucas
Senior Chinese leader He Guoqiang Tuesday called for stepping up the building of anti-corruption system in a bid to prevent and punish corruption at its source.He said building of an effective anti-corruption system is currently an urgent task in the country's anti-corruption drive. He, a member of the Standing Committee of the Communist Party of China (CPC) Central Committee Political Bureau, made the remarks Tuesday at a meeting on fighting corruption and promoting high standards. "It is an urgent task to strengthen the construction of anti-graft system in order to improve the framework of prevention and punishment and control corruption at source," He said. He said anti-corruption efforts should be incorporated into the operation of all industries and departments, with the focus on controlling and supervising the use of power. He also urged the study of effective measures abroad and the promotion of transparency of officials' work and the participation of the public in the anti-graft drive. He told officials to earnestly study and implement President Hu Jintao's speech at a plenary session of the Communist Party of China (CPC) Central Commission for Discipline Inspection (CCDI), the party's internal anti-graft body, on Jan. 11. Hu said at the session that efforts should be made to investigate cases of power abuse, corruption and embezzlement as well as dereliction of duty.Hu pledged to push forward the construction of anti-corruption system with confidence, determination, forceful measures and a solid working style.
Reference:
Xinhuahttp://paper.people.com.cn/rmrb/html/2010-03/03/nw.D110000renmrb_20100303_4-01.htm
Reference:
Xinhuahttp://paper.people.com.cn/rmrb/html/2010-03/03/nw.D110000renmrb_20100303_4-01.htm
इब्राहीम
Provisions hit Saudi banks
By Abeer Allam
Published: February 18 2010 02:00 | Last updated: February 18 2010 02:00
While the global financial crisis unfolded, Saudi Arabia maintained its conservative monetary policy had in effect shielded local banks from the effects of toxic foreign debt instruments.
Then defaults by the Saad Group and Ahmad Hamad Algosaibi & Brothers , two large family-owned Saudi conglomerates, revealed debts of $20bn were owed to international and local lenders. Saudi banks were estimated to have an exposure of $5bn-$7bn.
Officials again played down the importance of this, but fourth-quarter performance suggests the full magnitude of troubled debts, not just those of the two families, is beginning to be felt. Collective profits of 11 listed banks declined 8.6 per cent to SR22.22bn ($6bn) in 2009, with many citing credit provisioning and sluggish lending, according to National Commercial Bank. Analysts estimate non-performing loans at about 3 per cent in 2009.
The Saudi Arabian -British Bank (SABB), HSBC's Saudi affiliate, reported a 96 per cent plunge in profits to SR26m in the fourth quarter on provisions and slow lending. Net profit for 2009 declined to SR2.2bn, the lowest in five years.
Saudi Investment Bank, 7.4 per cent owned by JPMorgan International Finance, and the Al Bilad Bank, posted fourth-quarter losses of SR109m and SR299.5m respectively.
Riyad Bank, the third largest in Saudi Arabia by market value, bucked the trend, reporting an increase in net profits of 72 per cent to SR912m. "The high provisions suggest there must be more than just Al Saad and Gosaibi," says Hisham Abu Jamee, chief investment officer at Bakheet Investment Group. "They [the banks] have been not been transparent and the results are surprising and disappointing."
Analysts say most banks will book more provisions in the coming two quarters, especially those that did not report them fully last year.
Observers say several family-owned companies are restructuring debts, particularly in the steel and retail sectors, where large conglomerates expanded aggressively in the good times, then saw declining earnings as the economy slowed and metal prices dropped. After a lending spree in 2007 and 2008, banks put a break on lending last year, increasing borrowing costs, which, in turn, affected profits.
In spite of the results, analysts say Saudi banks are well capitalised and liquid. The country's 10 main commercial banks remain among the highest rated in the Gulf by Fitch, the ratings agency, which said in a report published in January that Saudi banks' performance should improve in 2010, although not to the same levels of profitability as seen in 2008.
"Banks wanted to clean up their balance sheets before extending new loans, and the private sector also became more risk averse, postponing projects and paying back loans," says John Sfakianakis, chief economist at Banque Saudi Fransi. "Toward the end of this year, lending will pick up again."
That view is echoed by Mohamed al-Jasser, governor of the Saudi Arabian Monetary Agency, the central bank, who says: "I am very comfortable about the stability and robustness of our banks. What they need to do now is to lend more."
In the absence of banks' willingness to lend, however, the authorities are doing their best to stimulate the economy.
The government plans to spend a record SR540bn this year to spur economic growth. Growth eased to 1 per cent last year, from 4.3 per cent in 2008. But without active participation from private businesses, the government is likely to have a hard time creating the jobs necessary for its 23m people, 65 per cent of whom are aged under 25, while official unemployment hovers at about 10 per cent.
Private sector growth slowed to 2.5 per cent in 2009 from 4.7 per cent in 2008, according to government data. Many companies attribute the sluggish performance to the difficulty in obtaining credit. In a business confidence index published by Banque Saudi Fransi, nearly 60 business leaders registered their disapproval of the lending attitude of banks.
"We are concerned about the high cost of financing and tight supply," Mohamed al-Madi, chief executive of petrochemical giant Sabic, says. "The current situation can't be sustained. It will limit investment to only the biggest companies with the strongest income statements.''
But banks shrug off the criticism, citing the global credit crunch and stricter lending policies after they came under scrutiny last year.
For years, banks have granted loans based on the reputation and family connections of borrowers, some of whom used the same collateral to obtain multiple loans from different banks.
Khaled Olayan, chairman of SABB, says that, given the current situation, banks have little choice but to tighten up.
"The banks are selective," says Mr Olayan. "Whenever we lend, we require proper security and collateral. In the past, lending might have been a picnic, but now, banks require more transparency and risk assessment.''
To spur lending, Sama has slashed benchmark lending rates by 200 basis points over the past year and lowered bank reserve requirements, but so far, the moves have done little to expand credit.
"If we had viable small and medium businesses, a lot of credit could be allocated to that sector, but banks keep giving credit to the same big names,'' says Mr Sfakianakis.
By Abeer Allam
Published: February 18 2010 02:00 | Last updated: February 18 2010 02:00
While the global financial crisis unfolded, Saudi Arabia maintained its conservative monetary policy had in effect shielded local banks from the effects of toxic foreign debt instruments.
Then defaults by the Saad Group and Ahmad Hamad Algosaibi & Brothers , two large family-owned Saudi conglomerates, revealed debts of $20bn were owed to international and local lenders. Saudi banks were estimated to have an exposure of $5bn-$7bn.
Officials again played down the importance of this, but fourth-quarter performance suggests the full magnitude of troubled debts, not just those of the two families, is beginning to be felt. Collective profits of 11 listed banks declined 8.6 per cent to SR22.22bn ($6bn) in 2009, with many citing credit provisioning and sluggish lending, according to National Commercial Bank. Analysts estimate non-performing loans at about 3 per cent in 2009.
The Saudi Arabian -British Bank (SABB), HSBC's Saudi affiliate, reported a 96 per cent plunge in profits to SR26m in the fourth quarter on provisions and slow lending. Net profit for 2009 declined to SR2.2bn, the lowest in five years.
Saudi Investment Bank, 7.4 per cent owned by JPMorgan International Finance, and the Al Bilad Bank, posted fourth-quarter losses of SR109m and SR299.5m respectively.
Riyad Bank, the third largest in Saudi Arabia by market value, bucked the trend, reporting an increase in net profits of 72 per cent to SR912m. "The high provisions suggest there must be more than just Al Saad and Gosaibi," says Hisham Abu Jamee, chief investment officer at Bakheet Investment Group. "They [the banks] have been not been transparent and the results are surprising and disappointing."
Analysts say most banks will book more provisions in the coming two quarters, especially those that did not report them fully last year.
Observers say several family-owned companies are restructuring debts, particularly in the steel and retail sectors, where large conglomerates expanded aggressively in the good times, then saw declining earnings as the economy slowed and metal prices dropped. After a lending spree in 2007 and 2008, banks put a break on lending last year, increasing borrowing costs, which, in turn, affected profits.
In spite of the results, analysts say Saudi banks are well capitalised and liquid. The country's 10 main commercial banks remain among the highest rated in the Gulf by Fitch, the ratings agency, which said in a report published in January that Saudi banks' performance should improve in 2010, although not to the same levels of profitability as seen in 2008.
"Banks wanted to clean up their balance sheets before extending new loans, and the private sector also became more risk averse, postponing projects and paying back loans," says John Sfakianakis, chief economist at Banque Saudi Fransi. "Toward the end of this year, lending will pick up again."
That view is echoed by Mohamed al-Jasser, governor of the Saudi Arabian Monetary Agency, the central bank, who says: "I am very comfortable about the stability and robustness of our banks. What they need to do now is to lend more."
In the absence of banks' willingness to lend, however, the authorities are doing their best to stimulate the economy.
The government plans to spend a record SR540bn this year to spur economic growth. Growth eased to 1 per cent last year, from 4.3 per cent in 2008. But without active participation from private businesses, the government is likely to have a hard time creating the jobs necessary for its 23m people, 65 per cent of whom are aged under 25, while official unemployment hovers at about 10 per cent.
Private sector growth slowed to 2.5 per cent in 2009 from 4.7 per cent in 2008, according to government data. Many companies attribute the sluggish performance to the difficulty in obtaining credit. In a business confidence index published by Banque Saudi Fransi, nearly 60 business leaders registered their disapproval of the lending attitude of banks.
"We are concerned about the high cost of financing and tight supply," Mohamed al-Madi, chief executive of petrochemical giant Sabic, says. "The current situation can't be sustained. It will limit investment to only the biggest companies with the strongest income statements.''
But banks shrug off the criticism, citing the global credit crunch and stricter lending policies after they came under scrutiny last year.
For years, banks have granted loans based on the reputation and family connections of borrowers, some of whom used the same collateral to obtain multiple loans from different banks.
Khaled Olayan, chairman of SABB, says that, given the current situation, banks have little choice but to tighten up.
"The banks are selective," says Mr Olayan. "Whenever we lend, we require proper security and collateral. In the past, lending might have been a picnic, but now, banks require more transparency and risk assessment.''
To spur lending, Sama has slashed benchmark lending rates by 200 basis points over the past year and lowered bank reserve requirements, but so far, the moves have done little to expand credit.
"If we had viable small and medium businesses, a lot of credit could be allocated to that sector, but banks keep giving credit to the same big names,'' says Mr Sfakianakis.
Tuesday, 2 March 2010
Green energy program drafted from Chinadaily--Jackie
BEIJING: The government has formulated a 10-year program under which clean energy will account for 15 percent of the total consumption mix by 2020, a top official has revealed.
To realize the goal, the government will invest billions in the construction of nuclear power stations, wind farms, solar power plants and research of renewable energy technologies, said Zhang Guobao, head of the National Energy Administration.
Zhang told China Daily that the program will soon be made public but did not specify a date.
He also said the National Energy Commission, the apex body set up in January to coordinate energy policy and headed by Premier Wen Jiabao, will hold its first meeting soon.
Zhang forecast a boom in the building of renewable energy infrastructure in the coming five years to meet the goal, which Wen pledged to global leaders at the Copenhagen climate change summit in December. The premier also pledged that the country will reduce its carbon intensity by 40-45 percent by 2020 from 2005 levels.
"Power projects take a long time to be up and running, and we are basically allowed five years to complete them although it is a 10-year program," said Zhang. "Otherwise, the facilities cannot be put into use by 2020." Official figures show that renewable energy accounted for 9.9 percent of total energy consumption last year, compared to 8.5 percent in 2008. Amid the global financial crisis, the government has decided to develop renewable energy as part of a stimulus package to keep the economy on the fast track.
Last year, groups of researchers, scientists and officials drafted the program under the supervision of Wen and Vice-Premier Li Keqiang.
The National People's Congress, the top legislature, recently passed an amendment to the renewable energy law to require power grid companies to buy all the electricity produced by renewable energy generators.
All these efforts reflect the strategic importance of the renewable energy industry, said Zhang, adding the policy will offer more opportunities for global partners.
"China and the United States have already strengthened cooperation in the regard by launching joint projects and research centers," said Zhang.
US President Barack Obama, in his first State of the Union address, said that "there's no reason Europe or China should have the fastest trains, or the new factories that manufacture clean energy products".
"I am quite happy the US has realized our competitiveness in the regard," said Zhang.
However, Zhang is concerned about some disturbing trends.
Last year, China's total energy consumption reached 3.1 billion tons of standard coal equivalent, up 6.3 percent from 2008.
This was in contrast with a previous downward trend when total energy consumption growth declined from 9.5 percent in 2005 to 4 percent in 2008.
But last year, China's economic growth, which stood at 8.7 percent, was the lowest during the past five years.
"It appears that some local governments approved energy-guzzling projects during economic crisis," said Zhang. "So only by fully implementing our energy saving regulations can we realize economic growth with less energy consumption."
Bao Wanxian contributed to the story.
http://www.chinadaily.com.cn/china/2010-03/02/content_9521579_2.htm
To realize the goal, the government will invest billions in the construction of nuclear power stations, wind farms, solar power plants and research of renewable energy technologies, said Zhang Guobao, head of the National Energy Administration.
Zhang told China Daily that the program will soon be made public but did not specify a date.
He also said the National Energy Commission, the apex body set up in January to coordinate energy policy and headed by Premier Wen Jiabao, will hold its first meeting soon.
Zhang forecast a boom in the building of renewable energy infrastructure in the coming five years to meet the goal, which Wen pledged to global leaders at the Copenhagen climate change summit in December. The premier also pledged that the country will reduce its carbon intensity by 40-45 percent by 2020 from 2005 levels.
"Power projects take a long time to be up and running, and we are basically allowed five years to complete them although it is a 10-year program," said Zhang. "Otherwise, the facilities cannot be put into use by 2020." Official figures show that renewable energy accounted for 9.9 percent of total energy consumption last year, compared to 8.5 percent in 2008. Amid the global financial crisis, the government has decided to develop renewable energy as part of a stimulus package to keep the economy on the fast track.
Last year, groups of researchers, scientists and officials drafted the program under the supervision of Wen and Vice-Premier Li Keqiang.
The National People's Congress, the top legislature, recently passed an amendment to the renewable energy law to require power grid companies to buy all the electricity produced by renewable energy generators.
All these efforts reflect the strategic importance of the renewable energy industry, said Zhang, adding the policy will offer more opportunities for global partners.
"China and the United States have already strengthened cooperation in the regard by launching joint projects and research centers," said Zhang.
US President Barack Obama, in his first State of the Union address, said that "there's no reason Europe or China should have the fastest trains, or the new factories that manufacture clean energy products".
"I am quite happy the US has realized our competitiveness in the regard," said Zhang.
However, Zhang is concerned about some disturbing trends.
Last year, China's total energy consumption reached 3.1 billion tons of standard coal equivalent, up 6.3 percent from 2008.
This was in contrast with a previous downward trend when total energy consumption growth declined from 9.5 percent in 2005 to 4 percent in 2008.
But last year, China's economic growth, which stood at 8.7 percent, was the lowest during the past five years.
"It appears that some local governments approved energy-guzzling projects during economic crisis," said Zhang. "So only by fully implementing our energy saving regulations can we realize economic growth with less energy consumption."
Bao Wanxian contributed to the story.
http://www.chinadaily.com.cn/china/2010-03/02/content_9521579_2.htm
China's wealth gap the widest since economic reforms began--Missy
The average annual income in China's cities stood at 17,175 yuan (£1,685) last year, more than three times the average income of 5,153 yuan in the countryside, according to the National Bureau of Statistics.
China Daily, the government-run newspaper, said this was the widest disparity for more than three decades.
The increasing split between China's prosperous cities and its vast interior is a "serious threat to social stability", according to the government, which has linked a spate of public protests to perceptions of social inequality.
"There has been an increasing number of mass disturbances occurring in recent years related to the yawning gap between the rich and the poor," said Yan Ye, a professor at the North China Institute of Science and Technology, to the state media.
He said more than half of China's population lives in rural areas, but they share under 12 per cent of the country's wealth. He added that there is no province that meets international minimum wage standards, but that many managers in state-owned companies have enormous incomes.
The government is working to provide universal healthcare in the Chinese countryside and to build more infrastructure inland to create jobs and spur industry.
Wen Jiabao, the Chinese prime minister, said at the weekend that it was "unfair if a society's wealth is only in the hands of a few people." He added: "In that case, the society is doomed to instability."
However, researchers told the China Daily they felt the wealth gap would keep growing. "I am afraid the income gap will continue to expand as the country focuses its efforts on urban sprawl, rather than rural development," said Song Hongyuan, the director of the Research Centre for the Rural Economy in the Ministry of Agriculture.
Meanwhile, Zhang Dongsheng, director of the Income Distribution Department of the National Development and Reform Commission, told the newspaper that the government had "said more than it has done" to reduce the disparity.
The news comes just ahead of the annual meeting of the National People's Congress, China's rubber-stamp parliament, in Beijing.
China Daily, the government-run newspaper, said this was the widest disparity for more than three decades.
The increasing split between China's prosperous cities and its vast interior is a "serious threat to social stability", according to the government, which has linked a spate of public protests to perceptions of social inequality.
"There has been an increasing number of mass disturbances occurring in recent years related to the yawning gap between the rich and the poor," said Yan Ye, a professor at the North China Institute of Science and Technology, to the state media.
He said more than half of China's population lives in rural areas, but they share under 12 per cent of the country's wealth. He added that there is no province that meets international minimum wage standards, but that many managers in state-owned companies have enormous incomes.
The government is working to provide universal healthcare in the Chinese countryside and to build more infrastructure inland to create jobs and spur industry.
Wen Jiabao, the Chinese prime minister, said at the weekend that it was "unfair if a society's wealth is only in the hands of a few people." He added: "In that case, the society is doomed to instability."
However, researchers told the China Daily they felt the wealth gap would keep growing. "I am afraid the income gap will continue to expand as the country focuses its efforts on urban sprawl, rather than rural development," said Song Hongyuan, the director of the Research Centre for the Rural Economy in the Ministry of Agriculture.
Meanwhile, Zhang Dongsheng, director of the Income Distribution Department of the National Development and Reform Commission, told the newspaper that the government had "said more than it has done" to reduce the disparity.
The news comes just ahead of the annual meeting of the National People's Congress, China's rubber-stamp parliament, in Beijing.
Beijing to invest $1.5b in Tibet environment---IAN
The Chinese central government will allocate a further investment of 10 billion yuan ($1.5 billion) by the end of 2015 to help protect and preserve the ecological environments in the Tibet Autonomous Region, Xinhua reported Tuesday.
The southwest plateau inland, with its nature reserve sprawling over 413,700 square kilometers, is a haven for at least 125 wild animal species and 39 wild plant species that are on the national protection list.
From 2001 to 2009, the Chinese central government has committed 8 billion yuan ($1.2 billion) to environmental preservation in Tibet, said Zhang Yongze, the region's environment bureau chief.
Since then, local governments have shut down nine cement plants, seven ironworks and four paper mills, and they've been working on promoting Tibetan herb medicine and tourism to boost its economy. So far, there is no chemical industry in the region.
The southwest plateau inland, with its nature reserve sprawling over 413,700 square kilometers, is a haven for at least 125 wild animal species and 39 wild plant species that are on the national protection list.
From 2001 to 2009, the Chinese central government has committed 8 billion yuan ($1.2 billion) to environmental preservation in Tibet, said Zhang Yongze, the region's environment bureau chief.
Since then, local governments have shut down nine cement plants, seven ironworks and four paper mills, and they've been working on promoting Tibetan herb medicine and tourism to boost its economy. So far, there is no chemical industry in the region.
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