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 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.