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.