Monday, November 28, 2005

Water Crisis Shows China's Pollution Risks - New York Times

Water Crisis Shows China's Pollution Risks - New York TimesNovember 24, 2005
Water Crisis Shows China's Pollution Risks
By DAVID LAGUE
BEIJING, Nov. 23 - The Chinese government's decision to cut potentially contaminated supplies of fresh water to a major city has highlighted the threat that industrial pollution poses to public health and economic development across the nation.

Almost four million people in Harbin in northeastern China are expected to be without running water until late Saturday after a chemical plant explosion on Nov. 13 contaminated the upper reaches of the nearby Songhua River with toxic benzene.

State media reported Wednesday that the local government ordered the shutdown starting at midnight Tuesday in Harbin, which is internationally known for its annual ice sculpture festival in January.

China's Environmental Agency confirmed that the river, which supplies the city, had suffered "major water pollution," the official New China News Agency said late Wednesday. But contaminated water had not reached the city, it added.

Before water was disconnected, residents were encouraged to store water in buckets and other containers, while the local authorities trucked in thousands of tons of bottled water. In panic buying Monday and Tuesday, customers stripped supermarkets and stores of bottled water and other beverages.

The airport and railroad stations were reported Wednesday to be jammed as residents tried to leave.

The New China News Agency reported that schools would be closed until Nov. 30, while 15 local hospitals had been placed on standby to handle any poisoning cases.

On Wednesday evening, Harbin temporarily restored water supplies to allow residents to stock up.

The shutdown is a potential threat to heating systems in Harbin, one of China's coldest cities, where day temperatures are already below freezing as winter approaches. The local authorities have ordered heating companies to ensure that they have adequate reserves of water from wells to maintain supplies of hot water to buildings.

The chemical plant explosion, 236 miles upriver, killed 5 people and forced 10,000 others to evacuate, the state media reported.

The threat of contamination to Harbin is a reminder that with its booming economy, China is facing a huge environmental challenge.

The combination of rapid industrialization, a vast population and intensive agriculture has led to some of the world's worst air pollution, widespread shortages of fresh water and soil degradation.

Pollution and contamination have exacerbated China's water shortages, which environmental experts and even senior officials say could threaten economic development. Data from monitoring stations in the country's seven major river drainage zones showed that 44 percent of rivers were polluted.

"Many lakes and water courses contain an excess of nutrients and need treatment before they are suitable as freshwater sources," the Organization for Economic Cooperation and Development said in a Nov. 14 report on Chinese agriculture.

Senior Chinese leaders, including President Hu Jintao and Prime Minister Wen Jiabao, have adopted environmental protection as a government priority, and they have repeatedly called for China to switch to economically sustainable development policies.

Specialists say China has some of the best environmental laws in the world, but the sheer scale of development, inadequate planning, corruption and poor enforcement often result in uncontrolled pollution.
Copyright 2005 The New York Times Company

China Vows to Work to Trim Trade Surplus - New York Times

China Vows to Work to Trim Trade Surplus - New York TimesChina Vows to Work to Trim Trade Surplus
By THE ASSOCIATED PRESS
Published: November 28, 2005
Filed at 7:41 a.m. ET

SHANGHAI, China (AP) -- China plans to boost imports and promote more investment overseas, the government says, vowing to do more to counter a surging trade surplus and calm friction with trading partners.

The pledge came in a report by the State Administration of Foreign Exchange, China's foreign exchange regulator, carried by state media Monday.

China's current account surplus, which includes merchandise trade and international remittances, soared 800 percent year-on-year in the first half of the year, to $67.3 billion, SAFE said in its report on the country's balance of payments. The report, released Sunday, was also posted on SAFE's Web site.

China's merchandise trade surplus, meanwhile, ballooned by 823 percent in the first half of the year from the same period a year earlier to $54.2 billion, it said. That gap, measuring the amount by which exports exceed imports, is expected to surpass $100 billion this year.

Not all major trading partners run deficits with China, which imports a large share of the raw materials and components used to produce its exports.

However, the trade surplus with the United States has been a source of recurrent friction. It hit a record $162 billion in 2004 and is expected to pass $200 billion this year -- again a record for a U.S. deficit with any single country.

In one major deal, announced during a recent visit to Beijing by President Bush, China signed a deal to buy 70 Boeing 737 airliners with a catalog value of $4 billion. The government said it will soon agree to purchase 80 more.

The SAFE report said the government plans to further boost imports of strategically important raw resources, advanced technologies and equipment and reduce exports of highly polluting and energy-consuming products, SAFE said. It did not give details on how it would do that.

China's foreign exchange reserves rose to $711 billion by the end of June, a trend that is constraining regulators' economic policy options and helping push prices for assets such as real estate beyond reasonable levels, it said.

By the end of September, China's foreign exchange reserves had climbed to $769 billion, up 50 percent from a year earlier.

The SAFE report said the government would further encourage Chinese companies to invest more overseas, part of what Beijing has dubbed its ''going out'' policy.

Such investments rose 248 percent in the first half of this year from a year earlier, to $4.1 billion, SAFE said. Companies from affluent areas in eastern China, such as Beijing and Shanghai and Zhejiang, Guangdong and Shandong provinces, accounted for 96 percent of the total, the report said.

China Warns Farmers to Improve Standards - New York Times

China Warns Farmers to Improve Standards - New York TimesChina Warns Farmers to Improve Standards

By THE ASSOCIATED PRESS
Published: November 28, 2005
Filed at 10:47 p.m. ET

SHANGHAI, China (AP) -- China has warned its farmers and food processors that sales to Japan and the European Union are likely to drop unless they can meet new food import standards that go into effect next year.

Japan has adopted a new regulation, to take effect from May 2006, imposing about 50,000 new standards for imported food products. The restrictions set maximum limits for chemical residues, such as pesticides, on foods and produce.

The new EU regulations, effective Jan. 1, raise standards for imported animal products. The complex new rules are expected to limit access to Japanese and the 25-nation EU bloc, China's two biggest export markets for food and agricultural products, the state-run newspaper China Daily reported, citing an unnamed Ministry of Commerce official.

About one-third of China's food exports go to neighboring Japan, with another 10 percent sold to EU countries.

China's vegetable and tea exports to Japan were likely to be most affected, the Ministry of Commerce said in a report on its Web site.

The ministry said it plans to hold training programs to help farmers adapt to the new regulations.

The new Japanese rules will ban many chemical residues that in the past were evaluated for health and safety and allowed by various world regulatory systems, the Commerce Ministry said.

The EU rules, part of a regional reform of food safety laws, will require all imported animal products to carry documents detailing the entire food chain of the product. The new rules also will change animal feed standards, it said.

China's exports of farm products rose 23 percent year-on-year in the first nine months of 2005 to $19.6 billion.