"Queshan" 2007 PLA Exercise

ZHENGZHOU, Sept. 22 (Xinhua) -- The Jinan Military Area Command of the Chinese People's Liberation Army (PLA) launched a seven-day exercise to attack "Blue Army" targets on a mountainous island on Saturday, according to Army sources.




The exercise, dubbed as "Queshan 2007", is divided into four stages -- change of combat readiness, long-distance maneuver, combat plot, and combat.

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China + Blackstone = Watch Out World

NEW YORK/BEIJING (Reuters) - China's new state investment agency is taking a $3 billion stake in U.S. private equity firm The Blackstone Group, in a sign Beijing plans to use its stash of currency reserves to become a global investor.

The agreement gives China's government a stake in the private equity boom sweeping the world and seals a key alliance for Blackstone at a time when foreign investors are struggling to gain support from Beijing to buy domestic assets.

China is taking a non-voting stake of just under 10 percent in Blackstone, leaving it under the radar screen from U.S. government scrutiny and providing a template for future deals.

"From what I understand it should be, or will be, part of a trend," Blackstone co-founder Stephen Schwarzman said of China's investment. "Blackstone is the first, but over time I would suspect there would be others," he told Reuters by phone.

The announcement comes just days before Chinese Vice Premier Wu Yi meets U.S. Treasury Secretary Henry Paulson in Washington to discuss sticking points in trade in the second round of the two governments' "Strategic Economic Dialogue."

The run-up to the talks has seen a flurry of deals and government measures, including Friday's move to widen the yuan's trading band to let the currency appreciate faster.

"If we are going to borrow from them, then we have to let them buy things," said William Overholt, director of the RAND Corp's Center for Asia Pacific Policy.

New York-based Blackstone, which is expanding its planned $4 billion IPO to $7 billion to accommodate the Chinese investment, is making a big push into China to catch up with rivals. It appointed Antony Leung, Hong Kong's financial secretary from 2001 to 2003, as its China chief in January.

"For both China and Blackstone, it's about enhancing access and developing deeper relationships," said Monte Brem, CEO of advisory firm Leucadia Capital Partners.

"The Chinese government wants to increase its access and role in the global private equity market; Blackstone wants to increase its access and role in China," Brem said.

Private equity firms buy companies or take controlling stakes, cut costs, restructure the businesses and sell them later for a profit. They usually borrow two-thirds of the money needed to finance their purchases.

Beijing will get the shares in the IPO, planned for June, at a 4.5 percent discount and has agreed to hold them for at least four years.

A SIGNIFICANT MOVE

China said in March it was setting up a vehicle to diversify part of its $1.2 trillion of foreign exchange reserves to improve returns on its portfolio, now mainly invested in dollar bonds.

The agency, still to be named, is headed by Lou Jiwei, a former vice finance minister, who was on hand in New York for Sunday's signing ceremony.

The new agency could manage up to $200 billion, state media reports have said. Finance Minister Jin Renqing has said one of its models would be Singapore's state-owned Temasek Holdings, which invests in a broad range of industrial and financial assets at home and abroad, including Chinese state-owned banks.

"This is a very, very significant move and it symbolizes that China believes in America," said Frank Holmes, chief executive of U.S. Global Investors Inc., which invests in Asia.

Holmes contrasted the move with the political furor that scuttled an attempt in 2005 by Chinese state-owned oil firm CNOOC <0883.hk> to buy U.S. oil producer Unocal.

China plans to own just under 10 percent of Blackstone's equity after the buyout firm's IPO, which Schwarzman said could be a template for future investments because they are not subject to U.S. government scrutiny.

"To the extent that the state investment company stays below the 10 percent threshold for governmental review...and invests in securities that are liquid, which this security eventually will be, that's a very easy way for the state investment company to put large amounts of money to work with minimum to no controversy," Schwarzman said.

U.S. buyout firms have flocked to Asia, seeking deals that tap into its booming economy and burgeoning consumer market.

But large, long-time U.S. buyout players in China, including TPG Capital and Carlyle Group , have found it difficult to secure majority deals.

In March, Carlyle settled for a minority stake in China's biggest machinery maker, Xugong Group Construction Machinery Co., bowing to Beijing's concern over spreading foreign influence.

Blackstone's recent deals include the $23 billion purchase of Equity Office Properties Trust and the $17.6 billion buyout of Freescale Semiconductor. It also manages a half-dozen other investment funds, including real estate and distressed debt.

(Additional reporting by Michael Flaherty and Mark McSherry in New York; JoAnne Allen and Jeremy Pelofsky in Washington)

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Chinese warships arrive in France to conduct joint military exercise

Two Chinese naval vessels on Friday arrived in the southern French port city of Toulon to conduct a joint military exercise with the French Navy in the Mediterranean sea.

During their five-day visit, more than 500 Chinese officers and sailors aboard the guided missile destroyer Guangzhou and the supply ship Weishanhu will take part in the joint military exercise dubbed "China-France Friendship 2007."

France is the fourth leg of the 87-day voyage of the two Chinese naval vessels that has already taken them to St. Petersburg, Russia, Portsmouth, Britain, and Cadiz, Spain.

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140,000 Chinese officials voluntarily turn bribes over to higher authorities

A total of 140,660 Chinese officials have voluntarily turned bribes they have accepted over to higher authorities in past five years, China's disciplinary watchdog said here Saturday.

The bribes, including cash, marketable securities and pay orders, were valued at about 676 million yuan (89.18 million U.S. dollars), according to the Central Commission for Discipline Inspection (CCDI) of the Communist Party of China.

During the same period, 6,828 officials have been punished for taking cash, marketable securities, pay orders, gift moneys by violating government anti-corruption regulations, while 16,411 officials have been punished for gambling, sources with CCDI said.

China has beefed up its fight against corruption. During this period of time, China has punished 16 ministerial-level or higher officials for "serious corruption" including Chen Liangyu, former Shanghai Party Chief,Zheng Xiaoyu, former head of State Food and Drug Administration and Qiu Xiaohua, former head of the National Bureau of Statistics.

At the same time, China introduced more approaches to tackle the thorny problem. Besides the government investigation and people's tips, China have encouraged people to confess their wrongdoings and turn over the bribes they have accepted.

CCDI issued a set of regulations targeting corruption that took effect on May 30, urging officials who have traded power for money to confess their crimes before the end of June in return for leniency.

Just in one month alone, 1,790 persons voluntarily reported their misconduct, involving 77.89 million yuan (10.2 million U.S. dollars), Gan Yisheng, CCDI spokesman, said at a press conference.

Gan said the regulations were effective since they laid the basis for the government to investigate cases involving violation of party discipline and they also provided an opportunity for those who had made mistakes to make corrections.


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Former bank official sentenced to death for corruption

CHENGDU, Sept. 22 (Xinhua) -- Huang Jinjiang, a former bank official in southwest China's Sichuan Province, has been given death sentence for accepting bribes, local court sources said on Saturday.

The Ziyang City's People's Court made the first-instance trial on Sept. 5. Huang was also deprived political rights all his life with the confiscation of all his personal assets.

According to the court verdict, from 1993 to 1997, the defendant Huang took advantage of his posts as president of China Agricultural Bank's subsidiary bank of Dazhou city to seek loans for a local firm after accepting bribes.

Huang accepted seven million yuan (about 930,000 U.S. dollars). Meanwhile, Huang's three colleagues, who will be handled in a separate case, accepted and extorted bribes worth of 3.12 million yuan (about 416,500 dollars).

By now, most part of the illicit money has not been recovered.

Huang's crime also resulted in losses of 700 million yuan in bank loans, which cannot be recovered. (about 93.3 million dollars).

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China to build new space launch center in southernmost province

BEIJING, Sept. 22 (Xinhua) -- China plans to construct a new space launch center in Wenchang, China's southernmost Hainan Province, according to official sources.

The new launch center aims to serve the next-generation rocket carriers that do emit poisonous and pollutive gas and new-type spacecraft.

The new launch site will be mainly used for launching synchronous satellites, heavy satellites, large space stations, and deep space probe satellites, according to the plan which has been approved by the State Council and the Central Military Commission.

Hainan is located in a low-latitude region, which is helpful to increasing the capacity of rocket carriers and extending the lifespan of satellites.

A spokesman for China's space program said the Chinese government works on peaceful use of the outer space to promote development of human civilization and social development and benefit the whole Mankind.

In 1958, China began building its first rocket launch site in northwest China's Jiuquan. At present, the country has three space launch grounds. The other two are located in Taiyuan, capital of north China's Shanxi Province and Xichang in southwestern Sichuan Province.

These launch sites have carried out over 100 space launches, sending over 100 satellites and six manned spacecraft into space.
Editor: Yan Liang

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Visits to Beijing cultural relics restricted during Olympics

BEIJING, Sept. 5 (Xinhua) -- Beijing will restrict the number of daily visits to cultural relics during the Olympic Games next year so as to ensure a sound visiting order and protect cultural relics, according to the Beijing Cultural Heritage Administration.

"All cultural relics of the capital are to undergo a thorough "facelift" in the coming few months before next August, and any renovation, except for emergency repair, will suspend during the Games," said Kong fanzhi, director of the administration.

Kong said the "facelift" includes the renovation of the exterior of ancient constructions and roofs which could be seen from adjacent streets so as to enable visitors, especially foreign tourists, to "see Beijing through cultural relics".

The "facelift" also refers to service improving, he said, adding cultural relics protection bureaus above the city-level should have more than two staff in charge of reception and visitor service.

The building of "soft environment" of cultural relics around Olympic venues should be specially improved, such as the building of obstacle-free facilities to benefit the handicapped, he said.

A regulation on cultural relics management for the Olympics, which outlines measures for protection, renovation, obstacle-free facilities and movie-shooting during the time, would be put into effect on Oct. 1 and last a year.
Editor: Yangtze Yan

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1,700-year-old tombs found in NW China

URUMQI, Sept. 12 (Xinhua) -- Nine 1,700-year-old brick tombs have been discovered in northwest China's Xinjiang Uygur Autonomous Region, which, experts say, provide valuable clues for the research of exchanges between the central Chinese government at that time and remote Western Regions.

It is the first time ancient tombs with typical characteristics of China's main Han nationality have been found in the Uygur ethnic region, said Yu Zhiyong, deputy head of the Xinjiang Cultural Relics and Archaeology Institute.

Archaeologists from Beijing, Shaanxi and Xinjiang concluded that the tombs were built between the middle and late third century and fourth century.

The tombs were unearthed during the construction of a road earlier this year in Kuqa county, 740 km from Xinjiang's capital Urumqi and part of the ancient Qiuci State.

Qiuci State, which existed between the second century BC and 860 AD, was one of the 36 states in the Western Regions, a term used in the Han Dynasty (206 BC-220 AD) for areas west of Yumen Pass including present Xinjiang and parts of central Asia.

The tombs would help archaeologists with research into the political, economic and cultural exchanges between the Central Plains government and states in the western oasis, and on the cultural influence of the Central Plains on the Western Regions, Yu added.

Archaeologists from the Xinjiang institute have excavated nine tombs since Aug. 22, finding skeletons of more than 30 people, some ancient coins and more than 60 pottery jars. It is thought there are another three tombs to be excavated.

Yu said the people buried in the tombs were probably either people from the western regions deeply influenced by the Han culture or the Han residents in the region.

The ancient Qiuci state became part of China's territory in 59 BC during the Western Han Dynasty (206BC-AD24). Many Han people move to Qiuci to avoid war during the Western Jin Dynasty (AD265-317).

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Amazing Art Made From Toothpicks

BEIJING, Sept. 20 -- Toothpicks may only be convenient pieces of wood in most people's eyes, but in Zheng Changlun's opinion, they have another usage---making mosaics.

The craftsman from Shangrao, east China's Jiangxi province, is now working on a painstaking mosaic that is 1.2 meters high and 0.6 meters wide.

A local newspaper reported on Wednesday that he is planning to incorporate 130,000 toothpicks in making a figure painting of Kwan-Yin, or Avalokiteshvara, the Goddess of Mercy from Chinese folklore.

Zheng, 49, drew his inspiration from a TV program which showed an Albanian artist sticking together 1.5 million toothpicks in making a mosaic of a galloping horse. The artist was included into the Guinness Book of World Records for his work.



Zheng also plans to challenge the artist's work with his own after he finishes the current work of Kwan-Yin, the report said.
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China Denies U.S. Charge It Hacked Pentagon Network

BEIJING, Sept. 4 (Xinhua) -- The Chinese government has rejected accusations by the United States that its military hacked into the Pentagon's computer network in June, labeling them "groundless."

"The Chinese government has always opposed any Internet-wrecking crime, including hacking, and cracked down on it according to the law," said Chinese Foreign Ministry spokeswoman Jiang Yu at a regular press conference.

The Financial Times, citing former and serving U.S. officials, said the Chinese People's Liberation Army hackers broke into a U.S. Defense Department network in June.

"Some people are making wild accusations against China and wantonly saying the Chinese military attacked the Pentagon's computer network. These are totally groundless and also reflect a Cold War mentality," Jiang said.

Jiang said China and the United States have worked together to build relations and the two militaries are enjoying a good momentum in exchanges.

She also said hacking was an international problem and that China itself has also been attacked.

"China would like to work with other countries to take measures to crack down on web crime," she said.

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Hero Buys Back Looted Art And Returns It To China

Macao gaming tycoon Stanley Ho Hung-sun has bought a rare bronze horse head plundered by British and French troops in the 19th century for HK$69.1 million ($8.84 million) and donated it to the motherland Thursday.

The sale set a record in the trade of Chinese sculptures from the Qing Dynasty (1644-1911), Sotheby's Hong Kong said in a news release.

The deal stopped the national treasure looted from the Yuanmingyuan (the Old Summer Palace) being auctioned at Sotheby's autumn auction in October.

"We do not agree with cultural relics which were smuggled, stolen, or looted in wars being auctioned," Song Xinchao, director of museums department at the State Administration of Cultural Heritage, told a press conference on Thursday in Beijing.

He thanked Ho for his "patriotic act" and said the administration welcomes donations of cultural relics from abroad.

"I feel honored to have played a role in saving lost Chinese cultural relics from overseas," Ho, 85, said in a statement.

Ho was ranked 104th on Forbes' list of billionaires this year, with $7 billion in personal wealth.

The bronze statue is set to go on display in Sotheby's pre-auction exhibition at the Hong Kong Convention and Exhibition Center October 4-8, and at Hotel Lisboa in Macao starting October 9.

It has not been decided when and where the statue will be displayed on the mainland.

The statue is one of the 12 bronze heads of zodiac animals that graced a water-clock fountain in the Old Summer Palace, which was destroyed by the British and the French in 1860. So far, only the whereabouts of seven are known.

Besides the horse head, four statues - the tiger, monkey, ox and pig - have been bought in auctions and are on display at the Poly Art Museum in Beijing. The rat and rabbit are in a private European collection.

Song said Sotheby's Hong Kong was contacted "as soon as we heard the news" and the auction house agreed to help in the repatriation of the treasure.

"It contacted possible buyers, and Mr Ho showed interest as soon as he heard about the news."

With Sotheby's coordination, the owner's trustee and Ho finally sealed the deal at a price 22 times of what the owner reportedly paid for the sculpture at a Sotheby's London auction in 1989, or HK$3.14 million.

"China has got back more than 3,500 pieces of cultural relics from overseas since 1997," Song said.

"The government consistently maintains that historic relics abroad should be reclaimed by legal and diplomatic means, under the legal framework and principles set up by the international society, and through international cooperation," he added.

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UN Rejection of Taiwan Bid Lauded

Beijing praised the latest decision by the UN General Assembly to reject a vote on Taiwan's attempt to join the world body Thursday, saying it demonstrates that no one can change the fact that "Taiwan is an inalienable part of Chinese territories".

Foreign Ministry spokeswoman Jiang Yu made the remarks after the General Committee of the 62nd session of the UN General Assembly decided not to include the so-called issue of "Taiwan's participation in the United Nations" on the agenda of the General Assembly on Wednesday.

"This again shows that... any act that is against the UN Charter and Resolution 2758 will gain no support of the vast majority of the UN member states, and any attempt to challenge the one-China policy and split China will doom to fail," said Jiang.

It was the 15th consecutive year the General Assembly thwarted Taiwan authorities' attempt to join the UN.

In New York, China's Permanent Representative to the United Nations Wang Guangya said on Wednesday that no matter what plots the Taiwan authorities hatch, their attempts to seek "Taiwan independence" through secessionist activities in the United Nations will never win international support.

Wang noted that the Chen Shui-bian administration, for personal and party interests, is provoking confrontation across the Taiwan Straits with intensified secessionist activities.

"Instead of offering blessings to the Taiwan compatriots, these activities can only cause disastrous consequences," he said.

"We hope and believe that the Taiwan compatriots can clearly see Chen's ulterior motives," Wang said.

Jiang on Thursday also lashed out at a US report criticizing China's religious situation, saying "China is strongly resentful of, and resolutely opposed to, the report which runs counter to the fundamental principles of international relations and openly interferes in China's internal affairs".

She was commenting on the International Religious Freedom Report 2007 released by the US State Department last Friday.

Jiang said that all ethnic groups and people across China enjoy the freedom of belief fully as entitled by law, and it is the Chinese government's long-term policy to respect and protect religious freedom of its citizens.

"This is an undeniable fact that does not allow any distortion," she said.

She said China demands Washington stop using issues such as religion to intervene in China's internal affairs, and do more to promote mutual understanding and trust between the two countries instead.

On the Dalai Lama's ongoing visit to Germany, Jiang said: "the Dalai Lama is not simply a religious figure but a political one who has long engaged in separatist activities aimed at undermining national unity under the guise of religion."

She added that China resolutely opposes any official contact between the Dalai Lama and foreign governments in whatever form.


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Mattel Apologizes Over Toys Recall

Thomas Debrowski, an executive of Mattel, apologized Friday to a senior Chinese official for the inconvenience it has caused to Chinese consumers after recalling millions of China-made toys and pledged to take responsibility, according to a Xinhua witness.

During his talk with Li Changjiang, head of the General Administration of Quality Supervision, Inspection and Quarantine, Debrowski admitted that the vast majority of its recalled toys were of design flaws rather than the manufacturing errors of China.

According to a press release announced by a lawyer of the Mattel, 17.4 million toys have been recalled because of loose magnets and those recalled because of impermissible levels of lead numbered 2.2 millions.

The magnets related recalls were due to emerging issues concerning design and this has nothing to do with whether the toys were manufactured in China, said the press release.

"Mattel does not require Chinese manufacturers to be responsible for the magnets related recalls due to design problems," it said.

It also admitted that Mattel's lead-related recalls were "overly inclusive" as the company were "committed to applying the highest standards of safety for its products".

"The follow-up inspections also confirmed that part of the recalled toys complied with the US standards."

The same high standards to recalls of its products have been applied in the EU and other countries despite the fact that some of these products may have met local safety standards. its said.


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IOC cancels plan of Olympic torch relay passing through Chinese Taipei

BEIJING, Sept. 21 (Xinhua) -- The International Olympic Committee (IOC) has cancelled the plan of the Olympic torch relay passing through Chinese Taipei, it was announced by a spokesman of the Organizing Committee for the Beijing Olympic Games (BOCOG) on Friday.

The spokesman said that on Thursday, Tsai Chen-wei from Chinese Taipei Olympic Committee said in a letter to BOCOG that the Chinese Taipei Olympic Committee would not have further discussions with BOCOG on the issue of the Olympic torch relay passing through Chinese Taipei and thus closed the door of the discussion.

BOCOG expresses its deep regrets that the Olympic torch relay in the end will not be held in Chinese Taiepi and the high expectations of the Taiwan compatriots to pass the Olympic flame will not be realized, the spokesman said.

The spokesman said the responsibility for this entirely rests with the Taiwan authorities.

"The Taiwan authorities have violated the regulations of the 'Olympic Charter' and take the opportunity to promote political propaganda. The Taiwan authorities set up barrier over the agreed route of torch relay, which directly resulted in the abortion of the plan," said the spokesman.

It's the first time for an Olympic committee to turn down the arrival of Olympic torch relay.

The BOCOG announced on April 26 that the 2008 Olympic torch relay will pass through 135 cities all over the world. The planned137,000 kilometers route includes a stop at Taipei before the torch arrives in Hong Kong, Macao, and a score of Chinese mainland cities.

The relay route had been approved by the International Olympic Committee after the two sides across the Straits reached the agreement.

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China Consecrates New Beijing Bishop, Li Shan

A grand ceremony was held in a downtown Beijing Catholic church Friday morning to consecrate Li Shan, vice-chairman of the Beijing Church Affairs Committee, as new bishop of the Beijing diocese.

Li Shan, was elected bishop by priests and nuns of the Beijing diocese and representatives of Church followers on July 16, after his predecessor Michael Fu Tieshan passed away on April 20, 2007.

Li Shan, born in 1965, is also deputy to the Beijing Municipal People's Congress. His predecessor Fu, elected bishop of the Beijing diocese in 1979, was the first bishop consecrated by the Chinese Catholic Church after the government initiated its reform and opening up policy. The consecration, held at the 400-year-old Cathedral of the Immaculate Conception in downtown Beijing, was chaired by the Bishop Fang Xingyao of Linyi diocese and assisted by bishops of major dioceses in China.

Representatives from the Chinese Catholic Patriotic Association and Bishops' Conference of the Chinese Catholic Church, as well as more than 70 priests and 1000 fellows attended the ceremony.

China has 5 million Catholics under 97 dioceses.

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