News & Reports 2012-02-11

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In This EditionA senior U.N. official meets the current and former presidents of the Maldives, in an attempt to end political stalemate in the country.
Greek workers begin a public strike against the latest austerity measures, docking ships and halting public transport.
China's exports fall for the first time in two years, raising fresh concerns about the impact of a global slowdown on its economy.
And chemical leak from a docking South Korean cargo 1 ship in Zhenjiang is reportedly responsible for temporary contamination of water supplies in Jiangsu.
Hot Issue ReportsA Leading UN Official in the Maldives to Broker 2 a SolutionA senior U.N. official is meeting with the current and former presidents of the Maldives, in an attempt to end political stalemate in the country.
UN. Assistant Secretary-General for Political Affairs Oscar Fernandez-Taranco is calling all political forces to remain calm and prevent any violence.
"Any solution to this political crisis must be generated by national actors. I stress this fact. It is not for the international community to become engaged in a manner that would actually complicate 3 matters more. There can be no externally generated solution to the problems that the Maldivians themselves have to identify, resolve and this through a process of dialogue."Turmoil 4 in the Maldives escalated 5 sharply on Tuesday when President Mohamed Nasheed announced his resignation after months of protests against his rule.
However, the former president later claimed that he had been forced from power at gunpoint as part of a coup 6.
On top of that, Nasheed is now appealing for international help, whilst confirming that there is a warrant out for his arrest.
"I hope the international community will take note of what is happening in the Maldives, and if they can't do something right now, it certainly will be late tomorrow. We tend to work with facts on the ground, and tomorrow, the fact on the ground will be that I will be in jail, so it will be difficult to rewind from there on, but it will be rather much easier if people can start work now."Nasheed says he is worried about the safety of his family, who he says has already fled to Sri Lanka.
For his part, the new president of the Maldives Mohammed Hassan, is rebuffing suggestions that the former president was forced to stand down.
Meanwhile, clashes between the supporters of the former president and security personnel have been breaking out in both the capital Male and other atolls across the country.
The Maldivian military is now trying to bring the violence to an end.
Greeks Strike against Austerity, EU Demands more CutsGreek workers have begun a public strike against the latest austerity measures, docking ships and halting public transport.
The strike comes hours after euro zone finance ministers said Athens stll needs to make further cuts to convince them to release the next tranche of a 130 Billion Euro bailout.
The euro and shares fell sharply today, reflecting concern over a possible failure in the debt restructuring, after the European Union and International Monetary 7 Fund indicated that a hard-won Greek deal on spending cuts and wage cuts did not go far enough.
The EU and IMF are concerned by a series of broken promises by Athens and weeks of disagreement over the terms of a further bailout in order to avoid default.
Many Greeks, already suffering from five consecutive 8 years of recession, are increasingly angry about the measures, which sceptics say are unlikely to ease a desperate economy.
"A lot of mistakes have been made. And it's even more difficult to correct the mistakes now. We are in essence on a one-way street. Bankruptcy 9 is a fact. It's no longer the issue of saying either taking measures or bankruptcy. It's a given that there will be bankruptcy."Analysts 10 say an agreement needs to be reached by Sunday ahead of the next meeting with Eurozone finance ministers set to take place on Wednesday.
US, Thai and South Korean Military Forces Hold Joint 11 ExercisesAround 65-hundred U.S. military personnel have held a second joint military drill in Thailand.
Friday's exercise is part of a broader, 10-day military exercise that is set to continue until next Friday.
Another 35-hundred personnel from Thailand, the Republic of Korea, Japan, Singapore, Indonesia and Malaysia are also taking part in the event.
Kenneth Glueck is the Deputy Commander of Multi-National Force Lieutenant 12 General.
"No, there is no plan to expand military bases in Southeast Asia. We're looking at some more opportunities to go ahead and operate in more different countries on more of a rotational 13 basis but not to establish bases."The United States is the largest participating force in Friday's exercise.
20 other countries are also attending the drill as observers, including India and China.
The 31st annual drill, code named Cobra Gold 2012, came a month after U.S. President Barack Obama recast his defence strategy to focus on Asian security risks.
Some experts claim this could be a turning point by the U.S. to reassert its position in the Asia Pacific Region.
Xi Jinping's US Visit, Good Opportunity to Boost Strategic TrustResearchers in China are reiterating 14 that high level visits between China and the US can serve as a way of boosting strategic and bilateral 15 trust.
The comments come ahead of Chinese Vice 16 President Xi Jinping's visit to the US this coming Monday.
Tao Wenzhao is a researcher with Chinese Academy of Social Sciences.
"China and the US have long been lacking on strategic trust. There are two ways to create that trust, one is through dialogue and consultation 17. We can tell each other our strategic intentions and expectations to avoid misunderstanding and misjudgment. So visits need to be exchanged, including between the two top leaders. That said, I think Vice President Xi Jinping's upcoming visit to the US really is a great opportunity. The second way to boost trust is through cooperation. Trust cannot be gained in a short time, so both sides need to put in tireless effort to achieve that."Tao Wenzhao also alluded 18 to the fact that Xi Jinping's American visit comes before the US presidential elections, meaning the two sides are likely to take any opportunity to avoid unstable 19 factors to the bilateral relationship.
Xi Jinping is expected to visit Washington, Los Angeles and the state of Iowa during his 5 Day official visit.
China's Yuan Rises to New High against USDThe Chinese Renminbi rose to a new high against the U.S. dollar on Friday.
It strengthened by 72 basis points to stand at 6.2937 against the U.S. dollar.
It is the first time the RMB broke the 6.3 mark since China's central bank announced it will further reform of the formation mechanism 20 of the yuan exchange rate to improve its flexibility 21.
The RMB has appreciated by 7.82 percent during the period.
Yuan Gangming, researcher of Centre for China in the World Economy at Tsinghua University, said the level of trade surplus is just one major indicator 22 to measure exchange rate.
"Former American treasury 23 secretary Geithner said for countries like China, the ratio of trade surplus to GDP should stay within 4 percent. Now China's level has dropped to 2 percent. So the trade surplus is within the level that America is willing to accept. And the exchange rate of Renminbi is rational."The previous record was set on Jan. 4 when the yuan stood at 6.3001 against the dollar.
China's Jan. Exports Drop on Holiday EffectChina's exports fell in January, the first decline in more than two years, raising fresh concerns about the impact of a global slowdown on its economy.
Exports dipped 0.5% from a year earlier hurt by sluggish 24 demand and factories being shut during the Lunar New Year.
Exports reached 150 billion USD in January.
Zhu Haibin, Chief China Economist 25 at financial services firm JP Morgan said the fall in import figures could be a concern for China's economy.
"The big surprise in the data today obviously comes from the import side. The import decline is much more dramatic than markets have expected. So that brings out the concern that - of course there's Chinese New Year and holiday effect noise here - but the big concern is whether it reflects domestic demand weakness. I think that's a bigger concern."The country's foreign trade also fell 7.8 percent year-on-year to 272.6 billion U.S. dollars in January.
Zhu Haibin says that export figures will continue to watched closely in the first half of the year.
"In our forecasts, actually, exports will remain one of the major risks facing China, particularly in the first half. So, particularly as the global economy in the first half will continue to slow down, we expect that the hit on China's exports will continue."After seasonal 26 adjustments, exports rose 10.3 percent year-on-year in January.
There represents a faster rate of growth compared with the 2.4 percent for February 2011; last year's Lunar New Year holiday.
The export sector 27 has been key to China's economic growth in the past few years as global firms have turned to Beijing to take advantage of its low-cost manufacturing.
However, a slowdown in the US and the eurozone, two of the biggest markets for Chinese goods, has seen the pace of growth of shipments slow in recent months.
China to Activate 28 New Risk Assessment 29 Mechanism in the Public Health SectorChina is to activate a risk assessment mechanism in the public health sector from next month.
Officials say the mechanism will track public health risks on a monthly or even daily base.
Liang Wan-nian is an official with the Ministry 30 of Health.
"Emergencies could strike anytime. Conventional diseases like, bird flu still poses a big threat. And other new infection diseases keep emerging. Those diseases now can travel a long distance by means of transportation. The risk of incoming diseases is increasing. Meantime, natural disasters are happening more frequently. Mine incidents and traffic incidents are still worrying."Liang Wan-nian also adds that efficient, rapid response to public health risks is essential.
"After we track down the risks, we should form a team to analyze 31 the situation right away. At the same time, different areas should finish their analysis before they report the risks to the upper level, so that they can also report the seriousness and solutions."China has had an emergency response system in place since 2004.
Public health departments in China have agreed to work together to get the countries risk assessment and it's sister response mechanism up to an international standard.
China is Strengthening its Capability 32 to Explore and Develop MinesChina's State Council has mapped out an outline of strategic action to explore mines in the upcoming ten years, which aims at strengthening China's capability of exploring and developing mines to better meet its ever increasing energy demand.
Our reporter Yang Yong has more.
With China's industrialization, urbanization and agriculture modernization 33 forging ahead, its demand of mining resources is spiraling up. China has become the world's largest producer and consumer of coal, steel and cement.
Among the important mining resources, China has to import at least 50 percent of oil and iron ore. In China, mining resources consumption outpaces production, while production is way ahead of resources exploration. Therefore, to strengthen the capability of exploring and developing key strategic resources is a burning issue.
By far, the Chinese government has facilitated the efforts to explore mines by formulating 34 favorable policies and earmarking funds. Over the past two years, more than 10 billion yuan has been earmarked to mines exploration and drilling. The civil society has also engaged in this area.
Wang Weizhong, deputy minister of China's Ministry of Technology, says more technological 35 support is to be put in place to drive mines exploration and drilling.
"At present, many issues remain unsolved in mines drilling and the comprehensive use of mining resources. In particular, breakthroughs need to be made in key technological bottlenecks 36. Therefore, the Ministry of Technology is to input 37 more resources to support the basic theoretical research and equipment development in mines exploration."Xu shaoshi, minister of China's Ministry of Land and Resources, explains unlike the previous endeavors, during this ten-year strategic action period, China will establish a market-oriented platform to better encourage individuals to contribute to mining resources exploration and development.
"Resources from all walks of life are to be better mobilized, especially funding from the civil society. Mines drilling enterprises can actively 38 participate in this endeavor through providing labor 39 services, technological support and funding."Xu shaoshi further points out equal emphasis should also be put in conservation and the comprehensive utilization 40 of resources, to curb 41 the current extensive drilling and the rampant 42 waste of mining resources.
For CRI, I'm Yang Yong.
Drinking Water Free of ContaminationStarting from the February 3rd, residents in Zhenjiang city, Jiangsu Province have noticed that their tap water smelt 43 odd.
Some suspected that their drinking water is contaminated. This triggered a series of panic purchases of bottled water. But experts say tap water is still save to drink.
Li Dong has the details.
A reporter with local newspaper the Dongfang Morning Post, Wang Chen says that on February 7th, when he went to a local supermarket, all bottled water had sold out.
"I saw that the shelves in a Carrefour supermarket were empty. All the bottled water was sold out. I went to another supermarket, it was the same situation. Staff said that at noon, some people had even rushed into their warehouse 44 to purchase water."Wang Chen asked some of those who bought a lot of water, their replies were similar. They just over heard from friends or others that the local water source has been contaminated.
However, Wang Chen adds, the panic water purchasing is not that scary.
"It's not like the bottled water is immediately being taken away as soon as the staff put them on the shelves. It's a long way from being that crazy."The foul-smelling incident started on February 3rd and by February 5th, local tap water companies claim that the smell was being caused by increased use of chlorine, which is used for disinfection.
However, just as on February 7th, another piece of information spread on the internet, claiming that a cargo ship had sunk in Jiangyin, located downstream from Zhenjiang city. The information said that chemicals on the ship had leaked. This triggered another round of panic purchasing of bottled water in the city of Nantong.
The Maritime 46 Authorities in Jiangsu Province quickly responded on their official website, saying that no ship sinking was confirmed in their administrative 47 territory.
An investigation 48 that followed later confirmed that a South Korean cargo ship docked in Zhenjiang was suspected of having accidentally leaked phenol, an acidic compound, into the upstream of the Yangtze River last week. But the local authorities said that its tap water had returned to normal.
Huang Minghao, professor at Nanjing Medical University's public health institute says using the standards of the American Environment Protection Bureau, the contamination was not sufficient to threaten public health.
"According to the phenol contamination standard used in US, if the phenol in 1 liter water exceeds 2.56 milligram, it may pose a chronic 49 poisonous effect to the aquatic 50 life. The minimum quota 51 to harm human's health is 3.5 milligram in 1 liter of water. However, the sample from the tap water companies and residents' family shows that the phenol is at a level of 0.001 milligram. It's a long way from posing a threat to people's health."Local authorities say that downstream, Shanghai's tap water remains 52 free of the chemical pollutants 53 that temporarily contaminated the water supply in neighboring Jiangsu Province.
For CRI, I am Li Dong.
Global TimesAuthorities of Guangdong province now say that mainlanders who breach 54 the one-child policy while seeking to give birth in Hongkong will be fined.
The statement comes as Hong Kong Special Administrative Region witnesses a growing number of mainland mothers flocking to the region to give birth in order to obtain local residency.
Local officials in Hong Kong have called for legal amendments 55 to end the "birth tourist" tide for fear that unregulated arrivals could dry up limited public resources.
In 2010, mainland women accounted for one-third of the newborns in Hong Kong, up from 620 in 2001. Last year, about 43,000 mainland women gave birth in Hong Kong.
The surge in mainland mothers going to Hong Kong to deliver their babies has prompted growing resentment 56 against mainlanders in the SAR.
These sentiments came to a head recently after the Hong Kong-based Apple Daily carried a full page advertisement last week, demanding the local government stop mainland pregnant women from entering the city.
The ad featured a huge locust 57 occupying the tip of Lion Rock against the backdrop of Victoria Harbor symbolizing 58 mainlanders' use of the city's resources.
Noting that penalties for breaking the family planning policy in the mainland have a limited effect in preventing the influx 59, experts say that limits set by the HK government would be more effective.
Experts also pointed 60 out that high medical cost for deliveries have brought significant profits for local hospitals, and that could be one reason why Hong Kong did not take immediate 45 action.
***************************Shanghai DailyA real estate developer is slapped with a 500,000 yuan fine for destroying the courtyard residence of a famous Chinese architect in downtown Beijing.
The developer, Fuheng Real Estate which is a subsidiary of China Resources, was also ordered to restore the brick-and-tile compound.
Fuheng bulldozed the traditional-style courtyard in Beizongbu Hutong without an official approval last December.
The courtyard was once the home of Liang Sicheng, recognized as the "father of modern Chinese architecture" and his wife, Lin Huiyin, also an accomplished 61 architect and scholar during the 1930s.
The compound was listed as a cultural heritage under protection by the State Administration of Cultural Heritage in 2009.
The demolishment has sparked outcries among the netizens, who criticize the real estate developer for demolishing 62 cultural heritage for seeks of commercial profits.
Market UpdateU.S stocks dropped on Friday as Greece's crucial international bailout was put on hold by euro zone finance ministers, adding to concerns that Greece could not get the money to avert 63 a disastrous 64 default.
The Dow Jones industrial average was down 0.7 percent to 12,801. The Standard & Poor's 500 Index was down 0.7 percent to 1,343. The Nasdaq Composite Index was down 0.8 percent to 2,904.
In Europe, London's FTSE 100 lost 0.7 percent to 5852. Frankfurt's DAX dropped 1.4 percent to 6693. CAC 40 in Paris lost 1.5 percent to 3373.