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 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.