China This Week: Kyrgyzstan, Beijing's Help for US; Latest on Economy

Shan Shan writes for EA:

China and Kyrgyzstan: China has evacuated 1,299 nationals from Kyrgyzstan where ethnic clashes have left at least 187 people dead, the Foreign Ministry said Thursday.

The ninth and last chartered flight of China Southern Airlines, with 148 Chinese nationals aboard, landed at an airport in Urumqi, capital of northwest China's Xinjiang Uygur Autonomous Region, early Thursday morning from Osh in southern Kyrgyzstan.

"After three days of efforts, the vast majority of Chinese nationals in Osh have been flown home," said Sun Dali, deputy director of the Department of Consular Affairs with the Foreign Ministry. "But we will continue to pay attention to and contact the Chinese nationals who are still staying in Kyrgyzstan, and offer immediate assistance to them in light of the changes of the local situation."

Meanwhile, China's Ministry of Commerce (MOC) said that the Chinese government has offered emergency humanitarian aid to Kyrgyzstan. The 5-million-yuan ($732,064) in assistance, including medicine, medical equipment, food, drinking water, blankets and tents was announced by the Chinese Foreign Ministry.

Beijing boosts holdings of US Debt: China has boosted its holdings of United States Treasury debt for the second straight month. The move is a gesture of assistance to Washington, easing concerns that lagging foreign demand --- and thus lower American exports --- will force the US Government to pay higher interest rates to finance its debt.

China's holdings of US Treasury securities rose by $5 billion to $900.2 billion in April, the US Treasury Department said. China is the largest foreign holder of Treasury securities, and the monthly gains in March and April come after six consecutive months when Beijing was either reducing its US holdings or keeping them constant.

The Chinese gesture to the US was made despite (or possibly because of) public exchanges between Beijing and Washington over the value of the Chinese currency.

China's Foreign Ministry on Monday responded to US calls for a rise in value of the yuan, thus assisting US exports to China,  saying that this was not to blame for the American trade deficit with China. The statement was also aimed at the US Congress, which has been threatening to press China over exchange rate policy.

During the first quarter of this year, US exports of goods to China increased about 50 percent compared to the same period in 2009.

The Latest on the Chinese Economy: China's consumer price index rose 3.1 percent in May compared to 2009, the National Bureau of Statistics has announced. This was a rise from April's figure of 2.8 percent and the trend earlier this year of 2.5 percent.

There may be further pressure on the economy: the producer price index rose 7.1 percent in May, up from April's 6.8 percent.

The official news was balanced by figures showing a 27.5 percent rise in foreign direct investment and a 48.5 percent rise in Chinese exports.

VP on Overseas Tour: Chinese Vice President Xi Jinping is travelling this week, making official visits to Bangladesh, Laos, New Zealand, and Australia.

As is often the case, the reasons for the trip are vague in Chinese official media, but the Australian and New Zealand legs, with meetings with New Zealand Prime Minister John Key and Australian Prime Minister Kevin Rudd, are likely to focus on Pacific security. Laos and Bangladesh? Look for some signs regarding Chinese overseas investment.

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