News & Reports 2011-01-15

Hello and Welcome to News and Reports on China Radio International.

In This Edition

Vice 1-Foreign Minister Cui Tiankai says China and the United States are on track to reach agreement on new cooperation projects in wide-ranging areas during President Hu Jintao's upcoming visit to the US.

U.S. Secretary of Defense 2 Robert Gates voices his support for diplomatic engagement with North Korea.

Floods and landslides 3 kill over 500 people in Brazil.

As the Chinese yuan keeps breaking the exchange record against the US dollar, Chinese exporters look for ways to try to ease the pressure being put on them.

Hot Issue Reports

Chinese Vice FM: China, US Have No Alternative but Cooperation

China's vice-foreign minister is suggesting that the two countries have no choice but to cooperate with each another. Cui Tiankai was speaking Friday ahead of President Hu Jintao's upcoming trip next week to the United States.

China's growth benefits the US and world economy

Meanwhile, the United States' Commerce Secretary says his country welcomes China's growth, because it's good for the global economy, and important for U.S. companies.

Gary Locke made the comment at a luncheon 4 in Washington hosted by the U.S.-China Business Council.

He says China's growth provides opportunities for U.S. companies to offer world-class products and services. They have helped improve the quality of life for the Chinese, while providing jobs for American workers.

"In front of us is the opportunity for China and the United States to lead the world and its economy in the early 21st century to create a new foundation for sustainable growth for years to come."

Locke says he has witnessed China's explosive growth during the past two decades especially after it joined the World Trade Organization.

"Tariffs 5 have come down. Property rights are steadily 6 evolving, and great strides have been made to free the flow of commerce across China's borders."

The Commerce Secretary says China is one of the top destinations for U.S. exports, only after Canada and Mexico. And the United States is the number-one market for Chinese products.

Gates in Seoul voices approval for diplomatic engagement with North

U.S. Secretary of Defense Robert Gates is voicing his support for diplomatic engagement with North Korea.

The comments come as he wraps up his week- long military discussions in east Asia.

Gates made a brief stop in Seoul today after visiting Beijing and Tokyo, meeting with his South Korean counterpart Kim Kwan-jin for short crisis talks on North Korea.

Earlier in Tokyo, Gates also signaled that the stalled six-party talks can resume if North Korea can prove it is serious about negotiations 7.

"When and if North Korea's behavior gives us any reason to believe that negotiations can be conducted productively, and in good faith, we will work with Japan, South Korea, Russia, and China to resume engagement dialogue with North Korea, through the six-party talks."

During his trips to China and Japan, Gates urged North Korea to put a moratorium 8 on nuclear and missile testing.

Floods and Landslides Kill Over 500 in Brazil; Rains Ease in Sri Lanka; Cleanup in Brisbane Begins

Rescue workers in Brazil are bracing 9 for more rain, as they struggle to reach areas cut off by massive floods and landslides that look certain to have killed more than 500 people.

In one of the country's worst natural disasters, rivers of mud have torn through towns in the mountainous Serrana region outside Rio de Janeiro, leveling houses.

President Dilma Rousseff has now flown over an area by helicopter which is now only accessible only by a perilous 10 eight-kilometer hike through mud-slicked jungle.

"What do we have to do? There are going to be landsides because of the heavy rains; fine, we just have to make sure people are not going to get killed because of it (heavy rains)."

More than 13-thousand people have been left homeless.

The flooding has likely caused billions of dollars in damage and has presented Rousseff with her first crisis, only two weeks after taking office.

Meanwhile, in Sri Lanka, the death toll 11 from the monsoon 12 flooding and mudslides has now risen to 27, with more than a million people still displaced by the devastating 13 disaster.

Forcasters say the rains have eased across the eastern region, but many are still in need of aid.

"We don't have proper meals. We are having a very difficult time because of these rains. We have nothing to sleep on and it is very cold. People are suffering. We have nothing to eat and we can't go to work. The government must help us."

The agriculture ministry 14 in Sri Lanka estimates that nearly a fifth of the country's rice farms have been inundated 15 and likely destroyed.

EU foreign chief expects progress in new Iranian nuclear talks

European Union foreign affairs chief Catherine Ashton says she expects progress in negotiations next week between world powers and Iran over its nuclear program.

"Suffice to say I'm very clear that what I want to see is progress next week. We've set out very clearly from our perspective what we are discussing and let's see what we get to … We've set sight sufficient time to be able to have serious dialogue, that we will be able to make progress and I very much look forward to achieving that."

One Iranian nuclear official has suggested that the talks in Istanbul next week could be the "last chance" for the West because Tehran's atomic capability 16 is improving.

Meanwhile, Ashton has confirmed the EU will not go on a tour of Iran's nuclear facilities, insisting the inspection 17 of nuclear sites should be done by the UN nuclear watchdog, the IAEA.

China to beef up research on basic sciences

Two Chinese scientists, materials expert Shi Changxu and hematologist Wang Zhenyi, have won China's top science award for their outstanding contributions to scientific and technological 18 innovation.

The pair, both from the Chinese Academy of Engineering, each received 5 million yuan, or 757,600 U.S. dollars, and were presented with certificates by President Hu Jintao at the Great Hall of the People in Beijing on Friday.

World Bank'sYuan Bond fuels renminbi internationalization

Friday wais the first day of yuan-bond issuance in Hong Kong. Earlier this month the World Bank officially announced its decision to price 500 million yuan, or 76 million U.S. dollars, of renminbi-denominated fixed-rate bonds.

According to HSBC, the book runner, the bonds mature on Jan 14th, 2013 with interests paid semi-annually.

It's widely believed that as a significant step towards the internationalization of the Chinese yuan, the move will help to build trust between investors 19 and the currency.

Ding Zhijie, President of the University of International Business and Economics, says it will also promote the recognition of the RMB at regional and international levels.

"It stimulates 20 the development of renminbi offshore 21 market in Hongkong. Besides, as World Bank gives financial and technical assistance to developing countries, if yuan-denominated bond is used in this way, its recognition will certainly be increased."

It's reported that the Bank of East Asia Ltd.'s China unit also plans to issue an unspecified amount of yuan-denominated bonds in Hong Kong in the first quarter of this year.

Chinese manufacturers tackle with RMB appreciation 22

As the Chinese yuan keeps breaking the exchange record against the US dollar, Chinese exporters are looking for ways to try to ease the pressure being put on them.

Many say they've predicted RMB's rise.

Chen Xi is the manager of the Xukun Trade company in Xiamen.

"Last Oct. we have almost predicted that the exchange rate RMB against US dollar will be around 6.5. Therefore, we've readjusted our quoted prices according to the prediction then."

For Chinese exporters, the advantage of lower costs is petering out as the yuan continues its upward move. The situation has also been prompting domestic manufacturers to switch their strategies.

Ou Naiguang is the vice chief executive officer of Global Sources, which facilitates outgoing trade from China.

"The appreciation of RMB indeed puts stress on foreign purchasers in the Chinese market. Therefore, the purchasers now are looking for high quality suppliers but not mainly low-price products."

The Renminbi hit a new record today against the US dollar, the second day in a row it's come in under 6.6.

Hard to Get Back Upfront Fees

One of Beijing's oldest and largest gym franchises 23 Qingniao Fitness, or Nirvana Fitness, has recently suspended business at five of its major outlets 24, triggering a credit crisis among businesses requiring upfront fees.

From the Nanfang Daily: A strike by hundreds of taxi drivers in Hubei has now entered its fifth week with many of them claiming to have been illegally detained.

Several cabbies in the city of Xianning, who are protesting over a new licensing 25 policy, say they have been detained for several days for allegedly causing social disorder 26 after they took to the streets to voice their anger against a plan to strip them of taxi licenses 28 in 10 years' time.

Xianning cab regulators now say the local government plans to confiscate 29 all its 456 taxi licenses by 2020 when drivers will have to apply for a new one. By that time, a government-selected company will manage the taxi business and some 200 more cabs would be put on the road.

The plan has angered the city's taxi drivers, who point out they've paid at least 300,000 yuan for a license 27. They argue the government has no right to take it back when the business is booming.