"Light industry is China's strong point, and its stable and healthy development would be of prime importance," State Council members told Xinhua News Agency.

Airline Gets Cash Injection

China Southern Airlines Co. Ltd. said its parent company had received a government cash injection of 3 billion yuan ($440 million), which would allow the financially strapped carrier to repay its debts and improve its operations.

All major airlines reported big losses in the third quarter with China Southern suffering an 810-milion-yuan ($119 million) loss because of surging oil prices and currency exchange fluctuations. The combined losses of China's three largest carriers-China Southern, Air China Ltd. and China Eastern Airlines Corp.-totaled 5.25 billion yuan ($770 million).

The airlines were confronted with insufficient capital supplies and mounting debt. The debt ratio of China Southern reached 80 percent, while that of China Eastern was 98 percent.

Although all three have asked the government for financial help, China Southern has been the only one to receive it so far. China Eastern said it was still in the process of seeking a capital injection from the government.

Ministry Encourages Spending

The National Bureau of Statistics said the consumer confidence index had slipped for three consecutive months since August, showing that citizens were not optimistic about future economic development. Experts noted that a slowdown in salary growth, or negative salary growth, had suppressed consumer spending.

In response, the Ministry of Commerce called on citizens to spend more, and put forth seven proposals to boost domestic consumption to prevent economy from going downward.

First, companies should optimize their logistics networks to promote convenient consumption. Second, they should tailor specialty products to meet market demand. Third, consumers should promote recyclable consumption and reuse secondhand products throughout their entire life cycles. Fourth, companies should improve their payment systems to encourage citizens to buy on credit, while sellers are encouraged to sell on credit. Fifth, middlemen should be reduced to cut circulation costs. Sixth, companies must improve their product quality to ensure their goods are safe for consumers. Last, sellers are encouraged to improve their marketing skills and boost their sales efforts during holidays and product exhibitions.

Sale of AIG Assets

American International Group Inc. (AIG), the largest insurer in the United States, is looking to sell part of its assets to repay the U.S. Government, which has included the beleaguered company in its $152-billion bailout package for financial institutions. Some Chinese banks and insurers have been mulling a purchase of the assets.

Gu Shu, Secretary to the Board of Directors of the ICBC Co. Ltd., told a financial seminar on November 25 that the bank was paying close attention to the asset sales and did not rule out the possibility of purchasing them. He added that ICBC would make a decision based on price and timing, and said the bank would not make hasty deals at a time of much economic uncertainty.

But Miao Jianmin, Vice President in charge of asset management at China Life Insurance Co. Ltd., denied previous media reports that the insurer was interested in AIG's assets, but provided no further explanation.

AIG encountered problems after the United States was hit by a massive credit crunch. It teetered on the brink of bankruptcy before the government's bailout plan came into effect.