China This Week: South China Sea Issue; Military Drills; High-Speed Rail Plan; Sino-Russia Grid Agreement

Foreign Minister Warning on South China Sea: Foreign Minister Yang Jiechi on Sunday warned other countries not to "internationalize" the territorial dispute over the South China Sea, following comments by US Secretary of State Hillary Clinton over the issue at the Association of Southeast Asian NationsRegional Forum in Vietnam.

Clinton said resolving disputes over the South China Sea was "pivotal" to regional stability and suggested an international mechanism to solve the issue.

"International practices show that the best way to resolve such disputes is for countries concerned to have direct bilateral negotiations," Yang responded. "China and some ASEAN nations have territorial and maritime rights disputes because we are neighbors. And those disputes shouldn't be viewed as ones between China and ASEAN as a whole just because the countries involved are ASEAN members."

Yang noted the Declaration on the Conduct of Parties in the South China Sea signed by China and ASEAN member countries in 2002 has helped ease regional conflicts. In the declaration, countries pledged to "exercise restraint, and not to make [the South China Sea] an international issue or multilateral issue”.

Navy Live-Ammunition Training in South China Sea: Naval units of the People's Liberation Army (PLA) conducted a large-scale live-ammunition training exercise in the South China Sea, according to a front-page report in Thursday's PLA Daily newspaper.

In the exercise, carried out on 26 July, warships and submarines from the Navy's South China Sea Fleet carried out precision strikes on surface targets by firing guided missiles, as warships conducted anti-missile air defense operations.

China Conducts Two Military Drills:The Chinese military conducted two exercises near the Yellow Sea, as the United States and South Korea engaged in a joint military drill.

On Tuesday, an army unit based at an inland province in the Jinan Military Command ferried combat forces and arms to "a coastal city" in Shandong province. Two days earlier, as Washington and Seoul began their joint exercise, the Nanjing Military Command tested a new long-range artillery rocket on land toward the Yellow Sea.

It was the first time China has carried out such a large-scale long-range artillery rocket drill.

As Washington and Seoul completed their first joint exercise on Wednesday, South Korea's Yonhap News Agency quoted a high-level military officer that the two sides will "present a joint military exercise once every month until the end of the year".

The official also said a US-South Korea drill is scheduled to take place in the Yellow Sea in September.

Communist Party in "Dialogue" with US Parties: The Communist Party of China (CPC) has scheduled a high-level dialogue with the Democratic Party and Republican Party in the US by the end of this year, Li Jun, spokesman for the International Department of the CPC Central Committee, has said.

The invitation follows the first high-level dialogue between the three main political parties when a US delegation led by former Secretary of State Madeleine Albright and former Assistant Secretary of State Richard Williamson visited China from 30 March 30 to 3 April.

China, Japan Talk on East China Sea Issue: On Tuesday, China and Japan on Tuesday conducted the first round of negotiations on the implementation of principles of consensus concerning the East China Sea.

The two sides agreed to make concerted efforts to implement the principlesand attain the common goal of turning the East China sea into a sea of "peace, cooperation and friendship".

High-speed Rail Links to be Doubled by 2012: China will spend 800 billion yuan ($120 billion) as part of an ambitious plan to double its high-speed rail network by 2012, the Ministry of Railways said on Wednesday.

The sum will be invested to lay more than 6000 km of new high-speed tracks across the country, pushing the total length of high-speed railways to 13,000 km by 2012, said Yu Bangli, chief economist with the Ministry.

He Huawu, the ministry's chief engineer, said that China will set a new record by running trains at 380 km (228 miles) per hour on the Beijing-Shanghai link, scheduled for completion before 2012.

China and Russia Sign Power-Grid Agreement: The State Grid Corporation of China has signed a framework agreement with the Russian national grid operator to extend their collaboration on grid technology, cooperation, and management.

According to Rusnews.cn, a Russian news portal, both companies will begin construction of a 500 kV, cross-border power line in the Amur region of Russia in 2011.

China to Recruit More Global Experts: Chinese Vice President Xi Jinping has said more efforts should be put into a programme for recruiting global experts, which was initiated in 2008.

By May this year, 662 people had been recruited under the program, which gives priority to leading scientists who are able to make breakthroughs in key technologies, develop high-tech industries, and lead new research projects.

According to the National Medium and Long-term Talent Development Plan (2010-2020), unveiled in June, the government will work out favourable policies on taxation, insurance, housing, children and spouse settlement, career development, research projects, and government awards for high-calibre overseas experts who are willing to work in China.

Foreign Seeds Cause Worries over Food Safety: The aggressive tacticsof foreign seed companies in China have increased concerns over the nation's food safety, especially at a time when agricultural yields are falling.

Worries surfaced after prices of some agricultural products spiraled in the past few months, amid concerns that the prevailing variations in weather will affect yields over the next few months.

UN Official Hails China's Role in Protecting Ozone Layer: An official with the UN Environment Program on Thursday hailed China's role in phasing out ozone-depleting chemicals while launching a joint initiative with the European Commission to protect the ozone layer.

Rajendra Shende, head of the UNEP Ozone Action Branch, told Xinhua that China has just completed preparing a national strategy to phase down and phase out the use of hydrochlorofluorocarbons (HCFSs) and will submit it in a couple of months to the UN funding agency.

China Economy Weekly: Beijing Moves on Trade and Investment; Soaring Property Market; Labour Activism Against Apple?

Hu Reiterates China's Economic Policy: Chinese President Hu Jintao has said that the government should stick to the pro-active fiscal policy and moderately loose monetary policy in the second half of this year to ensure a stable and relatively rapid economic development.

More efforts should be made to strengthen economic forecasts and warning systems, as well to coordinate economic policies, Hu added.

China Seeks Trade Balance, Not Surplus: China will continue to seek balance instead of surplus in trade and it will oppose any form of protectionism, Chinese Premier Wen Jiabao said at a joint news conference with visiting German Chancellor Angela Merkel.

China This Week: Drills In The Yellow Sea; China’s Energy Progress; Dalian Pipeline Blast

These efforts should be praised and not criticised, particularly when compared with any major country that claims to double its exports to alleviate unemployment pressure, Wen added.

Wen made the remarks amid growing concerns that China's export growth would gradually drop despite the strong momentum in June.

China will continue to stimulate domestic demand as well as stick to an appropriately loose monetary stance and pro-active fiscal policy, Wen said, declaring that policy stability will be the government's economic priority in the second half of this year.

China Sticks to Opening-up Policy: Chinese Premier Wen Jiabao has denied that the investment environment in China is worsening, as he invited more foreign companies to put money into the country.

Foreign firms have voiced concern that China's indigenous innovation policy might provide incentives for government bodies to purchase products developed by Chinese companies. The World Bank in a July report gave China a low investment environment ranking.

But the amount of foreign direct investment (FDI)  that flowed into China in the first half of the year rose 19.6% year-on-year, according to data from the Ministry of Commerce (MOC). China attracted $12.51 billion in FDI in June alone, up 39.6% year-on-year.

Wen said, "Foreign investment will not pour into a country where the investment environment is worsening." He asserted that China has relatively good infrastructure as well as a fair and stable market environment.

China's 2010 Foreign Trade Trend: A "high-low" trend was emerging for China's foreign trade in 2010, as growth in the first half would be stronger than in the second half of the year, Yao Jian, a spokesman with Ministry of Commerce told a briefing Tuesday.

China's exports will only moderately increase in the next half of the year, since tightening monetary policies in emerging economies, such as Brazil and India, and the European sovereign debt crisis will curb overseas demand, Yao said.

The country's total value of imports and exports jumped 43.1% percent year-on-year to $1.35 trillion in the January-to-June period, but the trade surplus was down 42.5% to $55.3 billion U.S. dollars.

"Wrong" to Hit at Outbound Investment: Countries including the United States and India should not politicise outbound investment by Chinese enterprises or abuse investment protection tools to shield their own industries and jobs from the financial crisis, the Ministry of Commerce said on Tuesday.

China's outbound direct investment (ODI) surged by 24% from a year earlier to $55.18 billion during the first six months, the ministry said. The investment mainly went to sectors such as mining, commercial services, manufacturing, wholesale, and retail.

Despite the rapid growth, Chinese investment abroad has been frequently blocked by other countries, especially the US and India, during the past few months.

China May Reform Yuan Exchange Rate Calculation: China may calculate the yuan's exchange rate against a basket of currencies, instead of only against the US dollar, Hu Xiaolian, deputy governor of the People's Bank of China said in a signed article published on the PBOC website.

There should be various currencies in the effective exchange rate basket to reflect the diversity of China's trade and investment activities, Hu added.

Agreement for Business with Hong Kong: The People's Bank of China, and Hong Kong's Bank of China (Hong Kong) Limited, signed a revised Settlement Agreement on the Clearing of Renminbi (Yuan) Business in Hong Kong.

"There will no longer be restrictions on banks in Hong Kong in establishing renminbi accounts for and providing related services to financial institutions; and individuals and corporations will be able to conduct renminbi payments and transfers through the banks," said Norman Chan, the chief executive of the Hong Kong Monetary Authority.

Foreign Investors Eye China's Real Estate: China's property market has seen soaring investment from foreign institutional investors, driven by strong expectations of currency appreciation this year.

According to international real estate advisor Richard Ellis, the value of en bloc property transactions in 15 Chinese cities has hit 49.9 billion yuan ($7.36 billion) in the first-half of this year, among which 19.4 billion yuan came from foreign institutional investors, 10.2 billion yuan from Hong Kong, Taiwan, and Macao, and the remaining 20.3 billion yuan from mainland investors.

Total investments in the first six months of this year were almost five-fold those from the same period of last year.

China Honors All WTO Entry Commitments: China has honoured all the commitments it made when entering the World Trade Organization (WTO), said Yao Jian, spokesman of Ministry of Commerce, on Tuesday.

"China has set up economic and trade mechanisms in line with WTO rules and requirements, and become one of the most open markets in the world," he said.

Yao added that China will further cut tariffs on agricultural and industrial products by about 30 percent according to the latest Doha round of talks.

US Labour Group Offers Help with Apple: A San Francisco-based labour council wants to help its counterparts in Guangdong Province press IT giant Apple to allocate more profits to its scandal-hit Chinese manufacturer to improve the treatment of Chinese workers.

Apple Inc is a major brand customer of Foxconn Technology Group, which employs more than 800,000 people on the Chinese mainland, mostly in Guangdong.

The latest offer came after a dozen Foxconn workers committed suicide by jumping off buildings in the company's premises in the first six months of this year.

A 19-year-old intern from the Dongfang Vocational School of Technology in Hebei province died on Tuesday morning after he fell from his sixth floor dormitory at the plant in Foshan of Guangdong, Chimei said in a statement on Wednesday.

Police are still investigating the case.

China This Week: Drills In The Yellow Sea; China’s Energy Progress; Dalian Pipeline Blast

US-South Korea Drill in Yellow Sea: China on Wednesday expressed its latest opposition to joint drills between the United States and South Korea , which Seoul-based media reported will occur in the Yellow Sea by early September.

It was the sixth time this month that Beijing has protested the joint drills, which were delayed following the Chinese objections. "We resolutely oppose any foreign military vessel and aircraft conducting activities in the Yellow Sea and China's coastal waters that undermine China's security interests. We will continue to follow closely the developments of the situation", Foreign Ministry spokesman Qin Gang said.

The US and South Korea originally scheduled the exercises after the suspected North Korean role in the deadly sinking of South Korean warship Cheonan in March.



During a visit to South Korea on Wednesday, US Secretary of State Hillary Clinton announced new sanctions against North Korea, targeted at the sale or procurement of arms and related goods as well as the procurement of luxury items.

Chinese Army Holds Yellow Sea Drill: The People's Liberation Army (PLA) held a military supply drill in the Yellow Sea over last weekend.

The drill was aimed at improving defense capabilities against long-distance attacks. Four helicopters and four rescue vessels were deployed for the exercise.

China Strengthens Military Ties: Vice Chairman of China's Central Military Commission Guo Boxiong Wednesday pledged to enhance military exchanges with Angola.

Guo made the vow in his meeting with visiting Angolan Minister of Defense Candido Pereira dos Santos Van-Dunem.

China and Laos on Thursday pledged to further strengthen military links during a meeting between China's Defense Minister Liang Guanglie and visiting Deputy Prime Minister and Minister of Defense of Laos Douangchay Phichit.

"China attaches importance to the bilateral relationship with Laos and its armed forces. This is not only in the interest of the two peoples, but also conducive to regional security and development," Liang said.

Pakistan's navy is very satisfied with the performance of the F-22P frigate it bought from China and hopes to further the cooperation with the nation, said Admiral Noman Bashir, Pakistan's Chief of Naval Staff.

Pakistan has proposed development of strategic maritime cooperation with China in both military and commercial sectors, such as fisheries, economic development zones, and cargo, Bashir said.

China Makes Critical Nuclear Progress: China's endeavour to increase the use of clean energy was boosted on Wednesday after an experimental fast reactor, using mostly homegrown fourth-generation nuclear technology, reached the critical state.

Fast reactors that run on fourth-generation technology use fuel in optimally to reduce energy costs. The technology will lift the uranium usage ratio to as high as 70 percent from the existing 1 percent, reducing the nation's reliance on foreign fuel imports.

The fast reactor program has been set up with a total investment of 2.5 billion yuan ($369 million). China is the eighth country to successfully master the technology.

China plans to set up 60 new nuclear reactors with a capacity of around 75 million kilowatts by 2020. The country is also constructing 23 machine sets to harness nuclear power, the largest among the 57 such sets in the world.

China Dismisses "Top Energy User" Title: China on Tuesday rejected a report by the International Energy Agency that Beijing surpassed the US to become the world's biggest energy consumer last year.

"The IEA's data on China's energy use is unreliable," Zhou Xian, an official with the National Energy Administration, said.

According to the IEA, China consumed 2.252 billion tons of oil equivalent in 2009, 0.4 percent more than the 2.17 billion tons of the US. China's National Bureau f Statistics said in a report in February that China's energy consumption last year stood at 3.1 billion tons of standard coal equivalent, which was equal to 2.132 billion tons of oil equivalent.

China to Reduce Reliance on Coal: China's coal consumption is likely to drop to 63 percent of total energy consumption by 2015, down from 70 percent last year.

Non-fossil fuels will provide 11 percent of China's energy needs in 2015 and 15 percent in 2020, said Jiang Bing, head of the development and planning department of the National Energy Administration.

China closed 620 substandard small coal mines in the first five months of the year, said Zhou Xi'an, another senior official with the NEA.

CNPC Plans for Xinjiang: Xinjiang Uygur autonomous region is expected to become the country's most significant base in oil and gas production, refining and chemicals manufacturing, oil storage, and engineering, and technology services in the next 10 years, according to China National Petroleum Corporation (CNPC), the nation's largest oil company.

Xinjiang will also become a strategic route for oil and gas imports from Central Asia and Russia, it said.

Oil and gas production in Xinjiang is expected to reach 50 million tons of oil equivalent in 2015. The figure will further rise to 60 million tons in 2020 and is expected to be sustained for 20 years, according to CNPC.

China Accepts ASEAN Consensus on Enlargement: China attaches importance to and respects the consensus reached among the ASEAN (Association of Southeast Asian Nations) members concerning the enlargement of the East Asia Summit (EAS), Foreign Ministry spokesman Qin Gang said Wednesday.

Qin was responding to the EAS's indication that it will bring in the United States and Russia as its new members. China will stay in close contact with related parties till a consensus is reached, Qin added.

ASEAN includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

Dalian Oil Supply Resumes: China is rushing to resume supply operations at Dalian's Xingang Harbor as cleanup operations continue six days after two pipelines exploded and spewed crude oil into the sea.

Dalian is one of China's major oil production and distribution hubs. It also has popular beaches, many of which were closed after crude oil washed up on them.

The oil pipeline exploded late on 16 July near Dalian's Xingang harbor, causing a smaller pipeline nearby also operated by a unit of PetroChina to blow up. The fire was extinguished the next day, 15 hours after the initial blast.

The incident occurred when an oil tanker was unloading, according to a statement on the Ministry of Transport's website, which did not indicate the cause.

China Cracks Down on Online Piracy: Chinese authorities launched a three-month nationwide campaign on Wednesday to crack down on illegal disttribution on the Internet.

Internet websites based in China that are found selling pirated books, DVDs, or other publications, as well as those providing links to pirated music, software, and movies, could be blocked and shut down.

Selling or uploading pirated publications related to the ongoing Shanghai World Exposition and upcoming Guangzhou Asian Games will also face severe punishment.

China's Economy This Week: Development in the West, Growth Slows but Exports Up, China-Argentina Railway Deal

China's Western Region Development Plan: Ten years after it unveiled a strategy to promote growth in its western areas, China announced a plan to continue the initiative, even as the world's third-largest economy strives for more domestic-driven growth.

The move comes amidst Government steps such as subsidizing auto and home appliance buyers to boost demand and lessen reliance on exports.

The National Development and Reform Commission said it will unveil 23 new infrastructure projects in the western region this year, with a total investment of 682.2 billion yuan ($100.62 billion). The money will be used to build railways, roads, airports, coal mines, and hydro-power stations.



The western region has six provinces, five autonomous regions and Chongqing municipality, accounting for more than 70 percent of the mainland and the habitat of 75 percent of the country's ethnic minorities.

China, Argentina Railway Deals: China and Argentina signed railway deals totaling $10 billion on Tuesday, amid efforts by Beijing to forge stronger commercial ties with Latin America.

Twelve agreements were reached between the two countries during Argentine President Cristina Fernandez de Kirchner's five-day visit to China.

The 10 railway projects, ranging from two to five years,- include the purchase of Chinese railway technology and investments in Argentina's rail line electrification projects,. Other deals cover areas like infrastructure, fishery, and energy. The two countries agreed to collaborate in light rail and subway construction in Argentina, with China providing export credit to Argentina for purchases of locomotives.

China's Growth Slows: Economic data Thursday confirmed market expectations that China's growth rate has slowed, but officials said the country's economy is still on track.

The Chinese economy expanded at a 10.3% year-on-year rate in the second quarter, slower than the 11.9% growth in the first quarter and the 10.7% in the last quarter of 2009, the National Bureau of Statistics said.

Many economists welcomed the economy's cooling, saying the slower growth is more sustainable. The moderation, which the government expected, will help accelerate transformation of growth and prevent overheating, NBS spokesman Sheng Laiyun told a press conference.

June Exports Highest in Year: China's exports for June hit a high point since July 2008, and the trade surplus also surged, although economists insisted such strong momentum cannot be sustained and there is little possibility that the yuan will strengthen by large margins, as widely expected.

The General Administration of Customs said that China's shipment of exports last month grew by 43.9% from the previous year to $137.4 billion and imports rose by 34.1% to $117.4 billion. The $20 billion trade surplus is a record high.

"There are reasons for the fast growth in exports in June, but the prospects are unhopeful in the second half of the year given a series of factors, including the European debt crisis, gradual appreciation of the yuan and rising costs for raw materials and labor," said Huo Jianguo, director of the Chinese Academy of International Trade and Economic Cooperation, affiliated with the Ministry of Commerce.

Tightening of Property Policy to Continue: China will continue its tightening policies for the property sector, even as housing prices in June saw the first monthly fall since February 2009, the Ministry of Housing and Urban-Rural Development said on Monday.

To rein in runaway property prices, the government in April raised down payments, ended mortgage discounts, tightened rules on loans to developers, and made it harder to buy more homes.

The property sector usually accounts for about 10 percent of Gross Domestic Product, and construction consumes half of the nation's output of steel and 36% of its aluminum.

China looking to Latin America for Oil, Gas: The China National Offshore Oil Corporation is eyeing Argentina and other Latin American countries for oil and gas development.

CNOOC will facilitate this through a joint venture set up in March this year with Bridas Energy Holdings of Argentina, said Fu Chengyu, president of CNOOC during a meeting with Julio de Vido, Argentinean minister of planning and development.

Mainland Yuan Service for Taiwan: The People's Bank of China, the central bank, announced Tuesday that it has authorized the Bank of China (Hong Kong) Limited to provide RMB cash settlement services to Taiwan.

Currently, Taiwan banks can trade yuan in Hong Kong at the Hong Kong and Shanghai Banking Corporation and Bank of America.

China This Week: Concern over US-South Korea Drill, Internet Openings and Closings, China Relations with UK, France, & EU

China Calls for Restraint as US, South Korea Plan Military Drill:  China on Thursday called for  an avoidance of tensions on the Korean Peninsula in response to a possible naval drill by the US and South Korea.

Foreign Ministry spokesman Qin Gang reiterated China's opposition to foreign warships or aircraft entering the Yellow Sea area and adjacent waters, engaging in activities that would affect Chinese security and interests.

Answering a question on whether China and North Korea would plan a military exercise if US and South Korea proceeded, Qin called the hypothesis "a typical Cold War mindset."

"Times have changed," said Qin. "No single country or military alliance can resolve issues like regional security and stability."

China Comments on  South Korea warship sinking:  China urged the involved parties to "flip over the page", after the sinking of the South Korean warship Cheonan warship, and restart the six-party talks over nuclear weapons on the Korean Peninsula.

Foreign Ministry spokesman Qin Gang made the comment after the United Nations Security Council released a Presidential statement on the Cheonan incident. The statement has encouraged the settlement of the outstanding issues on the Korean Peninsula by peaceful means and the resumption of direct dialogue and negotiations between the two Koreas.

Copper PlPant closed after Waste Leakage:  Zijin Mining Group Co., China's largest gold producer, has shut down a copper smelter in East China after a leakage of acidic water.

The plant in Fujian Province, producing 12,800 metric tons of copper a year, will only be reopened after checks by local environmental authorities, Lan Fuyan, vice-mayor of Shanghang County, said at a press conference.

According to initial estimates, the acidic water killed more than 1.9 million kilogrammes of fish.

New Government Transparency Rules:  A new regulation extends the list of declarable assets for officials and introduces dismissal as the maximum penalty for failing to report assets honestly and promptly.

The newly added items include the official's salary and subsidies; income from other sources such as lecturing; housing owned by the family; the family's investments in unlisted companies; the family's investment in stocks, investment-oriented insurance, and other financing products; and the employment of a spouse and children at home or abroad.

However, according to Zhu Lijia, an anti-corruption professor with the Chinese Academy of Governance, the new regulation fails to make a breakthrough in making officials' assets transparent. While the regulation requires officials to report to higher officials, it does not make that information public.

China and Britain seek stronger relations:  British Foreign Secretary William Hague said Wednesday that Britain hopes to further its relationship with China, as he met with Chinese Foreign Minister Yang Jiechi in Beijing.

Hague said the new British government stands ready to develop its relationship with China and would take the bilateral strategic partnership to a new level. He added that the two countries maintained close coordination and communication on issues such as development in African countries, the global economy, climate change, and the Iranian nuclear issue.

China, France Pledge to Strengthen Co-operation:  Chinese top legislator Wu Bangguo met with Marseilles Mayor Jean-Claude Gaudin on Tuesday, vowing to further cooperation at the local level between China and France.

Wu hoped Marseille would take the opportunity of the Shanghai Exposition to build links on new energy and materials, public transportation. and port construction. Gaudin said he hoped to cement cooperation with China on scientific, educational, cultural, and tourism matters.

China, EU enhance space technology co-op:  China and the European Union have strengthened their cooperation in space technology to better monitor climate change and improve the ability to prevent and control natural disasters.

At a conference entitled "Let's Embrace Space", Reinhard Schulte Braucks, head of the European Commission's Unit Space Research and Development said air pollution is a problem facing the entire world and China and the EU should strengthen cooperation to improve air quality monitoring.

China's Ministry of Science and Technology and the European Space Agency are conducting a cooperation project-DRAGONESS, which is China's largest international cooperation project in the field of earth observation.

China, Serbia vow to expand cooperation:  The top Chinese legislator Wu Bangguo and Serbian Prime Minister Mirko Cvetkovic met on Thursday and agreed to expand cooperation between two countries.

Thanks to their joint efforts, the two countries have made remarkable achievements in their cooperation in infrastructure construction, automobile manufacturing and other areas, noted Wu Bangguo, chairman of the Standing Committee of the National People's Congress of China.

Wu added that China and Serbia should make a full use of such advantages and seize opportunities to deepen bilateral collaboration in infrastructure construction including roads, bridges, and power plants.

Nokia to be awarded online map license:  China's State Bureau of Surveying and Mapping said it plans to give Nokia a license to provide online mapping services in China, making it the first foreign firm to get such approval.

The announcement may open doors for other foreign applicants such as Google and Microsoft, which have also reportedly applied for such licenses.

To avoid State secrets being disclosed and uncertified maps published online, the bureau launched a regulation in May requiring all companies providing online maps and location services in China to apply for approval.

It is unclear if the bureau will also approve Google's application. The US search engine had its Internet Content Provider license renewed by the Chinese government last weekend.

Filter software Green Dam "Closure" refuted:  The "Green Dam --- Youth Escort" Internet content-filtering software, which aroused opposition due to privacy and security concerns at home and abroad last year when it was launched, is facing funding difficulties, the Beijing Times reported.

One of two companies linked to the nationwide Internet pornography-filtering project refuted reports on Tuesday that the controversial software has been halted.

The Ministry of Industry and Information Technology announced in May last year that starting 1 July, all computers sold in the country must pre-install Green Dam. But after strong opposition from both foreign and domestic computer manufacturers makers as well as users over security concerns, the installation was restricted to schools and Internet cafes.

China's Population Statistics:  China's population on the mainland will reach 1.39 billion by the end of 2015, with as many as 700 million living in urban areas. This will be the first time that the urban population exceeds the rural population in China.

The Chinese aging population, senior citizens over 60 years of age, had reached 167 million, accounting for 12.5% of the country's population. The average life expectancy in China has surpassed 73, and 18.99 million people are more than 80 years old.

China's population of floating migrant workers reached a record 211 million by 2009 and will hit 350 million by 2050 if government policies remain unchanged.