RETURN ANNIVERSARY Chief Executive of the Hong Kong Special Administrative Region Donald Tsang (right) meets local residents during a ceremony to mark the 11th anniversary of Hong Kong's return to China, at Golden Bauhinia Square, on July 1

Chinese people do not want French President Nicolas Sarkozy at the opening ceremony of the Olympics, according to the results of a recent survey.

The poll, by Sina.com, was prompted by the president's threat to boycott the event, dependent on progress in talks between the Chinese Government and the Dalai Lama.

Eighty-eight percent of respondents said they viewed Sarkozy's remarks as "extremely unfriendly" and a similar number said they do not want him at the opening ceremony. As of July 3, around 100,000 people had taken part in the survey.

Unbalanced Growth

Industries with high levels of energy consumption and emissions are developing too fast, China's State Council, or Cabinet, warned on July 1.

The country's traditional industry structure remains unchanged, but the service and hi-tech manufacturing sectors have fallen as a proportion of the national economy, State Councilors heard at a meeting focusing on energy saving and emission reduction, chaired by Premier Wen Jiabao.

Meeting the energy-saving and emission-reduction targets set in the 11th Five-Year Plan (2006-10) remains an arduous task, they agreed.

Industries with high levels of energy consumption and pollution should be curbed, and land use, energy consumption and environmental impact should be considered when approving new projects, the State Council added.

Fiscal Earthquake Relief

On July 1, China's State Council unveiled a raft of fiscal measures to support reconstruction after the May 12 earthquake, including exemption from corporate income tax this year for companies that suffered heavy losses.

It also promised a six-month extension on all loan repayments in arrears due to the quake.

It also announced that new homes for survivors would be exempted from land use and other land-related taxes.

In addition to subsidies averaging 10,000 yuan ($1,429) for each homeless household, interest on home loans to quake survivors would be lowered by 40 percent, compared with the benchmark interest rate. The minimum down payment would be cut to 10 percent of the loan, compared with 20 to 50 percent in other parts of the country.

Train Derailment

Seven people were injured when a landslide derailed a passenger train in the early hours of June 30 in south China's Guangxi Zhuang Autonomous Region, according to sources with the regional railway bureau.

The accident occurred at 2:20 a.m., derailing a locomotive and six carriages of the No.1322 passenger train and cutting off the Litang-Zhanjiang Railway, which links Guangxi Zhuang Autonomous Region with Guangdong Province.

Uneven Rainfall

China's flood control and drought relief authorities warned the country is at risk from major seasonal flooding that had already killed 233 people and affected more than 34 million by July 2.

The Office of State Flood Control and Drought Relief Headquarters (SFDH) announced that the major flood season started on July 1. Meanwhile, the severe drought, which has caused temporary shortages of drinking water for 7.39 million people and 5.79 million livestock, will linger in the north, it added.

Statistics from the SFDH show the drought has affected more than 10.3 million hectares of farmland.

Zhang Zhitong, SFDH Office Vice Director, said the country's major rivers face an increasing risk of severe flooding as more rain is expected and the southeastern coastal regions are vulnerable to typhoons.