Expansion of Low-Rent Housing

China allocated more than 7.7 billion yuan ($1.05 billion) in 2007 to fund low-rent housing, which surpassed the total previous amount spent in this manner since the low-income housing drive began nationwide in 2003, according to the Ministry of Construction.

The ministry said that the program helped 681,000 low-income urban families improve their living conditions in 2007. By the end of October, the low-rent housing system had been established in all 656 cities nationwide.

By December, there were around 10 million urban families whose per-capita living space was less than 10 square meters, which accounted for 5.5 percent of all Chinese households.

Grain Exports Curbed

China started a temporary quota policy on the export of wheat, corn and rice powder on January 1, in order to curb grain exports boosted by climbing international prices, guarantee an adequate domestic supply and stabilize domestic food prices, said an announcement on the Ministry of Commerce website.

The period of the policy will be decided by the demand and supply situation of related domestic markets, the announcement said.

China's Ministry of Finance announced on December 30 that it would levy export taxes on wheat, corn, rice, soybeans and various processed grains in 2008, just a week after China scrapped tax rebates for grain exports. The export tax rates will range from 5-25 percent on 57 types of grain and grain products.

Abandoning Small Generators

China shut down 553 small thermal power generators in 2007, with a total capacity of 14.38 million kw or 44 percent above the annual goal, the National Development and Reform Commission (NDRC) announced.

Closing down small thermal power plants is part of the nation's energy-saving and pollution-reduction efforts. The State Council, the country's cabinet, set the annual goal of shutting down 10 million kw of thermal power capacity at the beginning of 2007.

After shutting down small facilities, large thermal power generators (single-set capacity exceeds 50,000 kw) will take their place for generating power. Large-scale facilities will help the country save 18.8 million tons of coal consumption and avoid emitting 290,000 tons of sulphur dioxide and 37.6 million tons of carbon dioxide every year, according to an official with NDRC.

Busiest Port

The cargo throughput of Shanghai port reached 560 million tons in 2007, ranking first in the world for the third straight year, the Shanghai Port and Shipping Bureau said.

Cargo volume grew by 4.2 percent from 2006. Shanghai port now has 42 TEU (twenty-foot container equivalent unit) piers and routes to more than 300 ports worldwide.

The cargo throughput of the port reached 443 million tons in 2005, surpassing the port of Singapore to become the largest in terms of cargo throughput.

Cushion for New Tax Law

China's State Council publicized policies aimed at cushioning the impact of enforcing the unified Corporate Income Tax Law.

The new law that took effect on January 1, 2008 has ended tax incentives for foreign-funded companies and unified income tax rates for companies at 25 percent.

The cabinet said that the new law would be phased in over five years. Companies that currently face an income tax of 15 percent will pay 18 percent in 2008, 20 percent in 2009, 22 percent in 2010, 24 percent in 2011 and 25 percent from 2012.

Companies that are exempt from taxes or have concession rates will retain their preferences until the original expiration date. Those that don't show a sufficient level of profit can retain their benefits in 2008.