BizChina

China's Ministry of Finance said Friday that the country will cut or completely eliminate tariffs on 33 commodities, ranging from fuel to textiles.

Import tariffs on gasoline and fuel oil will both be lowered to 1 percent from the previous 5 percent and 6 percent, respectively, while tariffs for diesel and aircraft fuel will be cut to zero, the ministry said in a statement on its website.

The tariff reductions, effective from July, aim to ease the country's trade imbalance and boost imports of advanced technological equipment and raw materials, the statement said.

Chrysler Group LLC is "aggressively" exploring the possibility of building more vehicles in China, where the company is on track to sell 40,000 cars and trucks this year, an executive said on Thursday.

The U.S. automaker, which is managed by Italy's Fiat SpA , could build cars and trucks in China through a joint venture between Fiat and Guangzhou Automobile Group Co Ltd .

By taking advantage of the joint venture, Chrysler can expand more quickly in China. Last year, the automaker sold 31,000 vehicles in China, the world's largest auto market where just over 18 million vehicles were sold.

"To find a partner, negotiate, get government approval, build a plant -- that's a long time," said Mike Manley, who heads Chrysler's Jeep brand and international operations. "Fiat are already through that."

China Premier Wen Jiabao sounded his most upbeat note this year on Beijing's fight against inflation, saying he expects price pressures to decline steadily even as the country keeps up its brisk economic growth.

In an opinion piece published in Friday's edition of the Financial Times newspaper, Wen wrote he was "confident price rises will be firmly under control this year," and that China is "fully capable of sustaining steady and fast economic growth."

Wen's remarks came as he kicks off a visit to debt-stricken Europe and is a timely response to investor worries that China, in its struggle to tame near three-year high inflation, could over-tighten monetary policy at the expense of economic growth.

"There is concern as to whether China can rein in inflation and sustain its rapid development," Wen wrote. "My answer is an emphatic yes."

The numbers for China's relentless push for a high-speed rail network are impressive -- in terms of debt, not passengers.

The argument in support of the vast project -- with many lines connecting to more sparsely populated inland regions -- is that they are a strategic investment that will link markets across the country.

Detractors counter that while high-speed rail may suit the densely populated eastern corridor, investment is wasted on inland projects which are better served, and more cheaply, by short flights and slow trains.

"It will be a liability, not an asset, for China," complained Zhao Jian, a professor with Beijing Jiaotong University, a vocal opponent of the ambitious plans.