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.

China This Week: Pipelines to Myanmar, US Penalties, Google's Concession

New EA correspondent Shan Shan launches our China This Week feature:

China Starts Pipelines to Myanmar

China National Petroleum Corporation (CNPC), the country's largest oil and gas producer and supplier, has announced that work has started on construction of two oil and gas pipelines between China and Myanmar.

In a statement posted on its website, the CNPC said that the pipelines, each of 1100 kilometres, are expected to run from the Kyaukpyu port on Myanmar's west coast and enter China at Ruili in Yunnan Province. The oil pipeline has a designed transport capacity of 22 million tonnes per year, while the natural gas pipeline has capacity of 12 billion cubic meters annually.

The statement did not say when the project would be finished.

US Sets Penalties on Chinese Drill Pipe: The US Commerce Department Tuesday set preliminary duties on imports of $119.2 million drill pipe from China. The department said in a statement that it "determined that Chinese exporters of drill pipe have received countervailable subsidies of 15.72 percent”. Based on these rates, the department will instruct US Customs and Border Protection to collect a cash deposit or bond.

The department said that it will make its final determination in August.

Agricultural Bank of China's Share Plan Approved: Agricultural Bank of China (ABC) has been given the go-ahead by Chinese regulators for what could be the world's largest share flotation. China's securities regulators Wednesday approved the initial public offering as the lender finalized preparations for its dual listing in Shanghai and Hong Kong.

ABC plans to sell up to 22.24 billion A-shares on the Shanghai Stock Exchange and up to 25.41 billion shares in Hong Kong.

However, analysts cannot agree on the likely amount Agbank will raise. It is considered the weakest of China's "big four" banks because its main customer base is within China's poorer rural communities. The offer is also complicated by the continuing uncertainly in global financial markets.

Natural disasters kill 157 in China in May: Natural disasters in China in May left 157 people dead and 22 missing, and caused about 45.17 billion yuan ($6.61 billion) in direct economic losses, the Ministry of Civil Affairs said on Wednesday.

Disasters, including floods, storms, landslides, droughts, snowfalls, freezing temperatures, and earthquakes, caused the evacuation of 842,000 residents and affected the lives of more than 64.57 million people, the ministry said in a statement on its website. Natural disasters hit 5.17 million hectares of farmland in May, destroying about 956,000 hectares of crops.

The damage caused by natural disasters in May was much more severe than in previous years. Yunnan, Guizhou, Hunan, Jiangxi, Guangdong and Chongqing were the provincial-level regions worst hit.

Shenzhen to Raise Minimum Wage: The minimum wage in Shenzhen City in south China's Guangdong Province will increase in July by 10 percent to 1,100 yuan per month ($161.04), municipal authorities said Wednesday.

"The pay rise will increase costs for labor-intensive companies, but I hope those companies will take this as an opportunity to speed up their technological innovation and industrial upgrading to boost their competitiveness," said Wang Min, head of the city's Human Resources and Social Security Bureau.

Shenzhen's move comes after a series of pay rises in China. Beijing will increase its minimum wage by 20 percent to 960 yuan from July 1.

The most dramatic rise has been at Foxconn, an IT contract manufacturer which will raise salaries for assembly workers at its production base in Shenzhen by 66 percent to 2,000 yuan per month from October 1.

Google agrees not to collect Wi-Fi data in Hong Kong: Google has ceased operating its Street View cars in Hong Kong and undertaken that, when the cars recommence driving, they will not collect Wi-Fi data, Hong Kong's   Privacy Commissioner for Personal Data said on Tuesday.

Google has agreed to provide the Commissioner access to the payload data collected by the Street View cars and shall render such assistance as may be required to facilitate the Commissioner's understanding of the process of the collection and the interpretation of such data.

In the meantime, Google shall securely store the data, including any backup, archives, or copies and shall not tamper with same or allow anyone to have unauthorized use or access which may contravene the laws of Hong Kong. Google has also assured to completely delete the payload data at the direction of the Commissioner and to provide the Commissioner with an independent third party's verification of the deletion.