News » Society » Six suspects of deadly Mekong River attack stand trial

News » Society » Six suspects of deadly Mekong River attack stand trial

Six suspects of deadly Mekong River attack stand trial

Posted: 19 Sep 2012 05:53 PM PDT

SIX suspects of last year's deadly attack on the Mekong River that left 13 Chinese sailors killed will stand trial today in a court in southwest China's Yunnan Province.
Naw Kham from Myanmar, along with other five other gang members, will face trial at the Intermediate People's Court in Kunming City, capital of Yunnan.

Is Taiwanese democracy changing Chinese students?

Posted: 19 Sep 2012 02:02 PM PDT

Is the Taiwan experience changing Chinese students?

Ageing China: Changes and challenges

Posted: 19 Sep 2012 04:57 PM PDT

Interactive look at China's changing population and the challenges facing younger generations

Bo Xilai could face charges over Neil Heywood murder

Posted: 19 Sep 2012 09:53 AM PDT

CHINA implicated former Chongqing Party chief Bo Xilai in a criminal case for the first time yesterday in an official account of the two-day trial of his one-time police chief.

It said Wang Lijun, ex-police chief and vice mayor of the southwestern city, tried to tell the then chief of the Communist Party of China Chongqing Committee - its Party Secretary Bo - that Bo's wife Bogu Kailai was suspected of murdering a British businessman.

But Wang was "angrily rebuked and had his ears boxed," according to the official account of Wang's trial this week in Chongqing's neighboring city of Chengdu.

Witness testimonies showed that on January 28, Wang reported to the then Party chief that Bogu was highly suspected in the November 15, 2011, case. On the morning of January 29, Wang was angrily rebuked and slapped in the face by the official.

The virtually unmistakable reference to Bo increases the chances of him facing criminal charges, possibly for covering up a crime or corruption.

So far, Bo has only been accused of breaching internal Party discipline.

Wang, 52, lifted the lid on the murder and cover-up of British businessman Neil Heywood in February when he went to the US consulate in Chengdu and told envoys there about the murder.

Within two months of Wang's visit to the consulate, Bo was sacked as Chongqing's Party secretary and from the Communist Party's Politburo, and Bo's wife was accused of poisoning the businessman.

A court has since imposed a suspended death sentence on Bogu for the killing.

According to the account of Wang's trial, the day after Bogu poisoned Heywood in a Chongqing hotel, Wang met her and she acknowledged that she had killed him. Wang secretly recorded that conversation, but did not act on Bogu's admission.

"I was so consumed by my selfish ideas then that I didn't want to handle the case," Xinhua news agency quoted Wang as saying in his testimony.

"After coming to Chongqing, I often visited Bogu Kailai's home, and I thought she treated me quite well. I knew if the case was treated as a homicide, it would be huge. However, to avoid antagonism with Bogu Kailai, I shunned the case," Wang said.

On November 15, after Heywood was found dead, Wang instructed Guo Weiguo, then Chongqing's deputy police chief and a close friend of Bogu's, to handle the case without telling Guo or other policemen that he possessed clues and recorded evidence of Bogu's involvement.

Later, Wang called a vice chief of criminal investigations, surnamed Huang, away from the crime scene and asked him to leave the case.

The next morning, Guo, Li Yang (former chief of the bureau's crime department), Wang Pengfei (former chief of the bureau's technical detection team) and Wang Zhi (former executive deputy chief of the police sub-bureau of Chongqing's Shapingba District) concluded that Heywood died from an alcohol overdose. All four have since been jailed for their part in the cover-up.

As the weeks went on, problems began to arise between Wang and Bogu. He felt that she was turning against him.

Several of Wang's colleagues became targets of "illegal investigations" and Wang began to feel he was in danger and so decided to flee.

Xu Ming, a plastics-to-property entrepreneur, is said to have offered two homes in Beijing worth over 2.85 million yuan (US$450,000) to a relative of Wang. In return, Wang helped free three of Xu's associates who had been taken into custody in Chongqing. Xu was detained in March.

A former intelligence agent, Yu Junshi, who has also been detained since March, was cited as renting expensive villas for Wang, in return for the freedom of another man held by the Chongqing police.


Xi says ties with US improving

Posted: 19 Sep 2012 09:52 AM PDT

VICE President Xi Jinping yesterday expressed the hope that Chinese and US defense authorities can remove barriers and enhance mutual trust.

Through joint efforts, China-US military ties have maintained the momentum of development and improvement since the beginning of the year, Xi told US Secretary of Defense Leon Panetta.

Military relations constitute an important part of bilateral ties, Xi said, noting that bilateral ties had scored important achievements, with dialogue, contact and cooperation reaching new highs.

Panetta said the US strategic rebalancing in the Asia-Pacific region is aimed at promoting regional stability, peace and prosperity, and developing a constructive relationship between the US and China is a key condition to this end.

It was good to see that US-China state-to-state and military ties had seen positive progress in recent years, Panetta said, expressing hopes for enhancing dialogue and cooperation with China and building a strong relationship between the two major powers.

After two days of meetings with political and military officials, Panetta said he was hopeful that the two nations could work together to bolster security in the region.

Panetta said he believed he had assured his hosts that US plans to add troops, ships and a new missile defense site in the region were not a threat to China.

Panetta's time in China was focused on slowly repairing America's long troubled military relationship with China and opening the door for better communications so the two nations can avoid misunderstandings.

He spent much of his time explaining the US military's new shift to the Pacific, which has fueled worries of increased tensions or conflict with China.

In a speech to Chinese troops yesterday, he said that the growing American presence in the region included an effort to build a stronger relationship with China.

"Our rebalance to the Asia-Pacific region is not an attempt to contain China. It is an attempt to engage China and expand its role in the Pacific," Panetta said in a speech to cadets and young officers at the Engineering Academy of PLA Armored Forces.

"It is about creating a new model in the relationship of two Pacific powers."

He told the academy gathering that America's future security and prosperity would be linked to Asia more than any other place in the world, but that it was also a region threatened by terrorism, nuclear proliferation, piracy and natural disasters.


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Xi denounces 'purchase' of Diaoyu isles as farce

Posted: 19 Sep 2012 09:29 AM PDT

Chinese Vice President Xi Jinping has denounced Japan's so-called purchase of China's Diaoyu Islands as a farce and said Tokyo should "rein in its behavior."

Tensions have run high on land and at sea, with four days of major protests in cities across China and Japanese and Chinese boats stalking each other in waters around the islands in the East China Sea.

"Japan should rein in its behavior and stop any words and acts that undermine China's sovereignty and territorial integrity," Xi said during a meeting with visiting US Defense Secretary Leon Panetta yesterday.

China's Foreign Ministry said the recent widespread anti-Japan protests reflected the Chinese public's firm resolution to safeguard sovereignty.

"The recent anti-Japan demonstrations are purely caused by the illegal purchase of the islands by the Japanese government," said ministry spokesman Hong Lei. "They reflect Chinese people's strong appeals on protesting Japan's acts that undermine China's territorial sovereignty and promoting justice."

The Japanese government should hear the firm resolution of the Chinese people from the demonstrations, said Hong when asked to comment on Japanese Prime Minister Yoshihiko Noda's request that China compensate Japanese enterprises for their losses during the protests.

Hong said that the Chinese government would protect the safety of foreign diplomatic missions, personnel and institutions in accordance with law, adding that relevant cases would be properly handled.

Chinese police cleared roadblocks and some Japanese businesses reopened yesterday after days of angry protests.

Beijing sanitation workers used high-pressure hoses to erase the stains of paint bombs hurled at the Japanese Embassy the day before. Roadblocks were removed, allowing for normal traffic around the embassy, and police shooed pedestrians away.

Many Japanese shops, restaurants and factories in China that closed to avoid being targeted by protesters were open again.

Japanese-invested businesses, including garment retailer Uniqlo, 7-Eleven convenience store chains and camera maker Canon had temporarily padlocked shops amid safety fears. They reopened yesterday.

There were anti-Japan protests in many Chinese cities over the weekend. More demonstrations followed on Tuesday, the 81st anniversary of Japan's invasion of China, an emotional remembrance that further stoked the outrage.

In Beijing, the bitterness reached the US Embassy, with about 50 protesters surrounding the car of US Ambassador Gary Locke, trying to block him from entering the compound.

Locke told reporters that Chinese authorities were "very quick" to move the demonstrators away. "It was all over in a matter of minutes, and I never felt in any danger," he said.

The United States, a close ally of Japan, has said it is staying out of the dispute.

Hong said the incident was "an individual case," but that China was investigating it.

China has sent patrol ships to the waters around the islands surrounded by rich fishing grounds and as-yet untapped underwater natural resources. Hundreds of Chinese fishing boats were heading to the waters around the islands for seasonal fishing.

Hong said such activities were within China's rights.

"It is totally legitimate and reasonable for Chinese fishing vessels to fish in relevant waters," he said.


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Aircraft carrier commissioning day near

Posted: 19 Sep 2012 09:27 AM PDT

CHINA'S first aircraft carrier was seen yesterday with a rainbow of signal flags flying from its mastheads and navy personnel standing in formation on deck, indicating that the ship was close to being pressed into service.

The carrier, named the Liaoning after the northeast province where it was refitted, was seen in full-dress at the port of Dalian yesterday.

About 50 signal flags adorned the vessel while naval personnel in blue uniforms with white caps stood in lines on the deck in an apparent rehearsal for a major ceremony.

Full-dress and soldier formation ceremonies are usually held when a ship is put into service, said Li Jie, a researcher with the China Navy Military Academy.

Chinese military analysts said the carrier might be commissioned before the National Day holiday on October 1. It was previously expected to be put into service by the end of the year. On an online military bulletin board some said China was putting the aircraft carrier into service in advance as a response to Japan's "unlawful purchase" of the Diaoyu Islands.

They also said the ceremony might be witnessed by US Secretary of Defense Leon Panetta who arrived in Beijing on Monday night for a three-day visit.

Apple's new phone says islands are Chinese

Posted: 19 Sep 2012 09:26 AM PDT

A MAP provider for the iPhone 5 yesterday rejected online claims that its application marked China's Diaoyu Islands as Japanese territory.

AutoNavi Information Technology Co, a Chinese company responsible for the map app that comes with the iPhone 5, said it listed the Diaoyu Islands as Chinese territory and uploaded screenshots to prove it.

Its announcement came after some microblogs claimed that the iPhone 5's app marked the islands as belonging to Japan.

A poster in Wenzhou in Zhejiang Province called for a boycott of the iPhone 5 until Apple explained the map issue. His post encouraging a boycott had been forwarded more than 6,600 times by last night.

But many people raised doubts as they said the product had not yet hit the market and people spreading the rumor had no evidence to back the story.

Yang Yongqi, a senior official with the map provider, told the People's Daily website yesterday that all the company's maps, including the iPhone 5 app, marked the Diaoyu Islands as Chinese territory.

"There's nothing to indicate that the iPhone 5 has given the islands to Japan," Yang said.

Yang said the company's maps could be published only after they were seen and checked by Chinese authorities.

An official from China's information technology ministry said they could not comment as they had not yet received a network access application for the new Apple product.

Public concern over rule governing cold medicine

Posted: 19 Sep 2012 09:00 AM PDT

A RULING that requires people buying cold medicine containing ephedrine to register their identities has been causing concern after it was put into effect earlier this month.

"It will be troublesome to buy medicine if you have a cold," said Liu Qianqian, who works in Hefei City, capital of east China's Anhui Province.

Ephedrine is commonly used in medicines to ease common cold symptoms, but it can also be extracted and used for producing methamphetamine hydrochloride, or crystal meth.

To crack down on illegal drug production, the State Food and Drug Administration requires that pharmacies check and register customers' identity cards and addresses when they purchase cold medicine.

The amount of each purchase is also being strictly limited.

"Cold medicine is a common medicine for everyone, but purchasing it for drug extraction is a few people's behavior," Host Xiaofeng posted on his microblog. "The government should not expect society to pay the price."

The regulation will not only inconvenience people who need the medicine but put their personal information at risk of being leaked, said Shanghai resident Sun Yuhua.

Earlier this year, a man in Chongqing was found to have extracted 23 kilograms of drugs from medicine bought from local pharmacies. Last year, two men were jailed for 15 years in east China's Jiangsu Province after producing 96 grams of crystal meth.

Heavy trucks blamed for deadly bridge collapse

Posted: 19 Sep 2012 09:00 AM PDT

OVERLOADED trucks rather than shoddy construction have been blamed for a deadly bridge collapse in Harbin, capital of Heilongjiang Province, the city government said yesterday.

Four trucks were on the Yangmingtan Bridge at the same time, causing a concrete girder to snap, it said in an official statement.

A 120-meter-long ramp then tilted and crashed to the ground, sending the trucks plunging 30 meters, killing three people and injuring five others. Three of the four vehicles were heavy-duty trucks loaded with lime and together they weighed more than 400 tons, officials said.

Truck drivers Wang Zhiwu, Zhang Dingbo and Liu Guodong were taken into police custody following the August 24 accident. Traffic police and officials have also been investigated over lax management and dereliction of duty, the statement said.

Spanning the Songhua River in Harbin, the eight-lane bridge which opened last November is said to have cost 1.88 billion yuan (US$298 million) and took just 18 months to build, a record for the province.

After the collapse, the government dismissed concerns over construction quality.

But Huang Yi, a spokesman for the State Administration of Work Safety, said at the time: "The bridge must have some problems as it collapsed a year after being constructed."

His view was backed by photographs showing broken pieces of the ramp filled with pebbles, wood and even bits of sacking.

And a construction worker at the scene was reported as saying that steel bars used in the project were too weak.

China to launch National Low-carbon Day

Posted: 19 Sep 2012 09:00 AM PDT

CHINA is to have a National Low-carbon Day from next year in the latest move to cut greenhouse gas emissions in the world's second-largest economy.

The State Council, or China's Cabinet, said yesterday that the day was aimed at promoting awareness about climate change and low-carbon development policies, encouraging public participation and facilitating the country's commitment to reduce greenhouse gas emissions.

National Low-carbon Day will fall on the third day of the National Energy Efficiency Promotion Week in June every year, the State Council said after meeting chaired by Premier Wen Jiabao.

The government has pledged to cut energy use per unit of GDP by 16 percent by 2015 from the level in 2011, while lifting non-fossil fuel energy use to 11.4 percent of the country's total energy consumption from the current 8.6 percent.

To meet the targets, it has adopted a range of measures, including the closure of outdated thermal power plants and iron and cement workshops and a push for the use of clean energy, such as solar and wind power.

The government hopes to further reduce greenhouse gas emissions per unit of GDP in 2020 by 40 to 45 percent compared to 2005 levels.

At the meeting, the State Council also adopted a new sandstorm control plan in north China to minimize dust storms affecting Beijing and neighboring Tianjin Municipality.

The second stage of the sandstorm control project for 2013-2022 will cover 138 counties in Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia and Shaanxi.

Since 2000, the first phase of the sandstorm control project has helped reduce the frequency of sandstorms and improved air quality in Beijing and Tianjin, the State Council said.

The meeting also decided to raise the subsidy standard for some reforestation projects from next year. The amount of subsidy was not disclosed.

Currently, the state pays a subsidy of 1,575 yuan (US$248) per hectare of farmland returned to woodland along the Yangtze River valley and the southern regions and 1,050 yuan per hectare along the Yellow River valley and northern regions. The State Council said about 9.3 million hectares of farmland returned to forest between 1999 and 2006.

It urged local governments to continue programs aimed at improving reforestation and helping rural households with living standards while they return farmland to forest.

China row over fence for beggars

Posted: 19 Sep 2012 09:56 AM PDT

Officials in China's Jiangxi province are criticised for putting beggars behind an iron fence during a temple fair, local media report.

FedEx Is Downbeat on Chinese Economy

Posted: 19 Sep 2012 08:36 AM PDT

Source: Wall Street Journal By Bob Sechler

The head of FedEx Corp. on Tuesday sounded a warning about the fate of China's export-driven economy as the world's largest air package shipper cut its forecast for global growth in 2012 and 2013.
Fred Smith, the company's chief executive, said the economic weakness in Europe and the U.S. had slowed global trade, with product launches by tech-industry stalwarts such as Apple Inc. and Microsoft Corp. providing only a temporary lift.

Some China observers "completely underestimate" the impact of slowing exports despite the country's domestic stimulus efforts, Mr. Smith said during a conference call with analysts after the company reported a slip in fiscal first-quarter profit.

Mr. Smith's comments echo recent concerns expressed by other prominent executives. Andrew Liveris, chief executive of Dow Chemical Co., last week cautioned that destocking by Chinese clients was continuing, while small and medium-sized enterprises were suffering from a liquidity crunch. "They really are hurting, and bankruptcies are starting to occur," said Mr. Liveris at an investor event.

FedEx and rivals including United Parcel Service Inc. have invested heavily in building the infrastructure to handle Chinese exports, and the two companies recently won approval to launch domestic parcel delivery services in the country.

Both companies have already trimmed the amount of flying to the U.S. as the volume of consumer electronics, auto parts and other goods that make them closely watched economic bellwethers has fallen, in part because of competition from cheaper ocean shipping options.

The weakness of the global economy and the broader changes in trade flows will see FedEx next month detail a shake-up of its express-delivery network.

"We see the [U.S.] economy not improving from here," FedEx Chief Financial Officer Alan Graf said Tuesday. He noted that its outlook for growth in U.S. gross domestic product next year has been given "a significant haircut"—to 1.9%, from an anticipated 2.4% just three months ago. Its forecast for global GDP growth next year was cut to 2.7% from 3% previously.

Mr. Smith blamed "policy choices" in the U.S., China and Europe for causing global trade to decelerate even faster than GDP, with U.S. stimulus efforts adding to the pressure on fuel costs by pushing investors into commodities.

FedEx, based in Memphis, Tenn., has been moving to trim costs for much of the past year—primarily in its big express segment—but it made clear Tuesday that the benefits haven't come quick enough to offset the weak economy.

The company lowered its full-year earnings view, now expecting between $6.20 and $6.60 a share, down from an already disappointing forecast of $6.90 to $7.40 in June. For its current quarter ending in November, FedEx forecast per-share earnings of between $1.30 and $1.45, below the consensus estimates of $1.67 from analysts surveyed by Thomson Reuters.

Mr. Smith and other FedEx executives on Tuesday repeatedly deferred questions regarding the company's strategy to their Oct. 10 investor meeting in Memphis. Broadly speaking, however, they said they will unveil a plan that cuts significant costs from the express unit while directing customers who don't need premium, time-sensitive shipping to more appropriate options.

"I think you'll be surprised at the magnitude" of the changes, Mr. Smith told analysts, although he objected to the use of the word "restructuring" to describe the plan. "We're not going to lay off people and we're not going to take some draconian steps," he said.

UPS in July undershot earnings expectations and cut its own full-year profit forecast, saying customer confidence has been rattled by the European debt crisis and the U.S. "fiscal cliff" looming early next year.

For the period ended Aug. 31, FedEx reported a profit of $459 million, or $1.45 a share, down from year-earlier earnings of $464 million, or $1.46 a share. Revenue grew 2.6% to $10.79 billion, topping analysts' projections of $10.7 billion.

Operating margin narrowed to 6.9% from 7%.

Revenue from the express-shipping business—by far the company's largest top-line contributor—edged up 0.6% to $6.63 billion. The segment's operating income sank by 28%, as daily package volume fell 5% in the U.S. but rose 1% abroad on improvement in Europe and Asia.

Still, FedEx chalked up the slight increase in total international export volume largely to big gains in its relatively low-priced services. Volume in its international economy segment climbed 13% compared with a 2% volume decline in its international priority service.

The company's ground-shipping segment posted an 8.1% increase in revenue to $2.46 billion. Operating profit was up 9.3% as average daily volume grew 5%, driven by growth both FedEx Home Delivery and business-to-business services.

Also Tuesday, FedEx said it will increase shipping rates by an average of 3.9% for domestic, export and import services in the U.S. starting Jan. 7, 2013.

Anti-Japan Protests Raise Risks for China’s Leadership Shift

Posted: 19 Sep 2012 08:54 AM PDT

Source: Bloomberg News

Demonstrations across China against Japanese businesses and property pose a growing risk for the country's leaders as the economy slows and the Communist Party prepares for a once-a-decade transition of power.
With growth in danger of reaching a 22-year low, ousted Politburo member Bo Xilai's case still pending public resolution and the biggest diplomatic spat with Japan since 2005, any uncontrolled protests risk undermining authority before the handover. Thousands waved flags and brandished Mao Zedong portraits yesterday at Japanese diplomatic posts in Beijing and Shanghai in a sign of public fury over a territorial dispute.

"They do not want things to get out of control; there will be more attempts to contain the protests," said Joseph Cheng, a political science professor at the City University of Hong Kong. The portraits of Mao "are implicit criticisms of the present leadership," he said. Bo Xilai championed resurrection of Mao slogans before his downfall as Chongqing party boss this year.

Toyota Motor Corp. (7203), Sony Corp. (6758) and Fast Retailing Co. were among companies that halted operations in China after protesters attacked Japanese cars and shops. The Shanghai Composite Index (SHCOMP) of stocks recorded its biggest back-to-back loss since March.

China regards organizations not sanctioned by the government as illegal. Political protests, including those held by students in Tiananmen Square in 1989 and by practitioners of the Falun Gong spiritual group a decade later, have been forcibly suppressed.

Orchestration Undermined

The smooth orchestration of China's leadership handover has been undermined by the downfall of Bo, whose wife was convicted last month of murdering a British businessman. Wang Lijun, the former Chongqing police chief whose flight to an American diplomatic office in February triggered the country's biggest political crisis in two decades, yesterday confessed to defecting after a two-day trial.

"What the protests underscore is the level of frustration within society about many things: the slowing down of economic growth, the job market for young graduates," Jean-Pierre Cabestan, head of the department of government and international studies at Hong Kong Baptist University, said in a telephone interview. "And you have this opaque political system with leaders jockeying for position behind the curtain."

Xi Jinping, President Hu Jintao's heir apparent, disappeared from view for two weeks before re-emerging without explanation on Sept. 15. The dearth of information prompted speculation about his health and who else might oversee an economy struggling to overcome a widening wealth gap.

Ambassador's Car

At the Japanese embassy in Beijing, protesters threw bottles and branches at the building's walls, which were spattered with eggs and paint. In Shanghai, protesters marched through the streets waving Chinese flags and shouting slogans saying "Down With the Japanese."

Demonstrators in the capital caused minor damage to the official vehicle of U.S. Ambassador Gary Locke yesterday as it was about to enter the embassy grounds, spokesman Nolan Barkhouse said. Some of the people had Chinese flags and looked to be leaving protests taking place at the nearby Japanese embassy, said a U.S. official who wasn't authorized to speak publicly on the matter. Locke was in the car at the time of the incident, the official said.

The recent demonstrations escalated after Japan last week purchased the islands, called Diaoyu in Chinese and Senkaku in Japanese, from a private Japanese owner. The islands have been under Japanese administrative control since 1895.

Japanese Occupation

Some demonstrators said they were also protesting Japan's World War II occupation. China Central Television observed a moment of silence yesterday to commemorate the 81st anniversary of the Manchurian Incident, a staged attack on a Japanese railway that was used as an excuse to start an invasion that would see Japan take control of much of China.

Japanese Prime Minister Yoshihiko Noda last night said the anniversary was one reason for the demonstrations and said both sides must work to repair ties.

"If our relationship remains strained for a long period, it will be harmful not only to our two countries but to the region and the world economy," he said on TBS Television. "We should keep a cool head, but take a firm line. It is important to at least talk, exchange information and communicate."

The worst bilateral diplomatic crisis since 2005 is endangering a trade relationship that has tripled in the past decade to more than $340 billion. Japanese retailers in China closed their doors and covered up their logos as protests spread to dozens of cities.

Hot and Cold

The tensions complicate efforts to fortify growth in each country as Europe's debt crisis saps demand for exports. China was the largest market for Japanese exports in 2011, while Japan was the fourth-largest market for Chinese exports.

"Sino-Japan relations are often described as hot in trade but cold in politics, but now even the trade relationship is getting cold," said Zhang Jifeng, a researcher with the Institute of Japanese Studies at the Chinese Academy of Social Sciences in Beijing. "It's hard to tell which side would suffer more from the cooling trade, but it's sure that the pain will be deep for both."

Shares of Fast Retailing Co. (9983), owner of the Uniqlo clothing brand, fell the most in three months in Tokyo trading after the company closed 42 stores in China. Seven & I Holdings Co. (3382) closed 211 stores and Aeon Jusco shut 30 outlets.

Prevent Harm

"If this dispute doesn't end soon, it could be a very serious problem for Japan, especially when global demand is slowing," said Masaaki Kanno, chief economist at JPMorgan Securities Japan Co. "Japan would also diversify foreign direct investment away from China to China's neighbors."

The Japanese government yesterday urged China to "take all measures to prevent any further harm to Japanese citizens or companies," Chief Cabinet Secretary Osamu Fujimura told reporters in Tokyo.

Japan "totally caused" the current crisis and should "take responsibility," Chinese Defense Minister Liang Guanglie told reporters in Beijing yesterday in a joint appearance with U.S. Defense Secretary Leon Panetta. "We will very closely watch the evolution with regards to this dispute and we reserve the right for further actions."

A Chinese fishing ban in waters surrounding the islands ended Sept. 16, and Chinese and Japanese media aired footage of fishing vessels heading out to sea. The state-run China News Service reported on Sept. 17 that 1,000 fishing boats typically go to the region and the government would send more vessels than in recent years. Hong Kong-based activists may go to the region as early as today, the Apple Daily newspaper reported.

Fishing Boats

Fujimura said that while 10 Chinese patrol boats have been spotted in waters adjacent to Japan's territory, Japan has no information about the fishing boats. He confirmed yesterday that two Japanese temporarily landed on one of the islands. At least two Chinese vessels entered Japan's waters, NHK Television said last night, citing the Coast Guard.

"Considering that Japanese companies make important contributions to the Chinese economy and employment, people should look at the broader picture and act calmly," Fujimura said.

Pfizer and Merck set up Chinese joint ventures for generic drugs

Posted: 19 Sep 2012 08:32 AM PDT

Source: Want China Times

Two global pharmaceutical companies recently set up joint ventures with Chinese partners to access the mainland market, eyeing the great potential of the Chinese generic drug sector, the Shanghai-based Oriental Morning Post reports.
On Sept. 13, the world's largest drug company Pfizer and China's Zhejiang Hisun Pharmaceutical Co jointly set up a new company based in the city of Hangzhou.

With a registered capital of US$250 million, Hisun owns a 51% stake in the joint venture, while Pfizer owns 49%. The new company has factories in Fuyang, Zhejiang province and operations in Shanghai and Hangzhou.

A day earlier, the world's second-largest drug company Merck & Co and China's Simcere Pharmaceutical Group had announced the start of their joint venture's operations in Shanghai.

The Hisun-Pfizer joint venture said it would mainly focus on developing and producing drugs whose patents had expired, including generic drugs.

Pfizer had previously forecast that China would become the world's second-largest drug market in 2015, with generic drugs taking a 70% market share, according to the newspaper.

The deal comes at a time when Pfizer's sales are declining because of the expiration of several of its drug patents, including Lipitor, a drug that helps lower cholesterol, the patent on which expired at the end of 2011. Analysts said Pfizer's 50% annual decline in net profits during the fourth quarter last year was partly caused by the 24% decline in sales of Lipitor during that period.

Meanwhile, the joint venture would help Hisun realize its goal of moving to manufacturing drugs from manufacturing pharmaceutical ingredients and to expand its overseas market, the newspaper reported.

Wu Hufang, chief researcher with a Chinese-language website specializing in health issues, said most Chinese generic drugs for export were produced by foreign-invested manufacturers in China.

According to Wu Xiaobin, the country manager of Pfizer China, the lower quality of products and foreign countries' tough import standards were preventing domestic drug manufacturers from exporting freely. Wu expects Pfizer's participation in the joint venture to improve the situation and said Pfizer's global purchasing network will enable the export of generic drugs produced in China.

On the other hand, Merck's venture, which includes drug factories, was aimed at lowering costs and better penetrating the Chinese market, an industry insider told the newspaper.

Through Simcere's sales network, Merck's products could be distributed in China's second- and third-tier cities, the source said.

China implicates Bo Xilai in criminal case

Posted: 19 Sep 2012 08:43 AM PDT

Source: Reuters By Ben Blanchard and Michael Martina

(Reuters) – China for the first time on Wednesday implicated former senior politician Bo Xilai in a criminal act while avoiding naming him directly in a published account by state media of the trial of his one-time police chief.
The Bo scandal has rocked Beijing, exposing rifts within the ruling Communist Party – elements of which are strong supporters of Bo's populist, left-leaning policies – at a time when China is preparing for a once-in-a-decade leadership change.

Wang Lijun, ex-police chief of southwestern Chongqing city, tried to tell "the Chongqing party committee's main responsible person at the time" – in other words, then-Chongqing Communist Party boss Bo – that Bo's wife, Gu Kailai, was suspected of murdering a British businessman.

But Wang was "angrily rebuked and had his ears boxed", according to Xinhua news agency's official account of Wang's trial this week in Chengdu city, near Chongqing.

The virtually unmistakable reference to Bo increases the chances of him facing criminal charges, possibly for covering up a crime or corruption.

So far, Bo has only been accused of breaching internal party discipline. He has not responded publicly to the allegations against him.

Wang, 52, lifted the lid on the murder and cover-up of British businessman Neil Heywood in February when he went to the U.S. consulate in Chengdu and, according to sources, told envoys there about the murder that would later bring down Bo.

Within two months of Wang's 24-hour visit to the consulate, Bo was sacked as party boss and from the Communist Party's Politburo and Bo's wife Gu was accused of poisoning the businessman.

A court has since given Gu a suspended death sentence for the killing in late 2011.

Xinhua said that the day after Gu had poisoned Heywood in a Chongqing hotel, Wang met her and she acknowledged that she had killed him. Wang secretly recorded that conversation, but did not act on Gu's admission.

"After arriving in Chongqing, I would often go to the home of Bogu Kailai. I felt Bogu Kailai was very good to me," Xinhua said, citing Wang's testimony.

Bogu is Gu's official but rarely used family name.

"At the time, my selfish motives were guiding me. I didn't want to face this case," Wang said.

However, as the weeks went on Xinhua said problems began to arise between Wang and Gu. He felt that she was turning on him.

INVESTIGATIONS

Several of Wang's colleagues became targets of "illegal investigations" and Wang began to feel he was in danger and so decided to flee, ending up in the U.S. mission in Chengdu.

"Inside the U.S. consulate, after Wang spoke briefly with consular officials about environmental protection, education, and science and technology, he stated that because his personal safety had been threatened while investigating cases, he requested shelter with the U.S. side, and furthermore made an application for political asylum," Xinhua said.

The only corruption cases mentioned in the Xinhua account involved close business cronies of the former politician – potentially opening a corruption angle against Bo himself.

Xu Ming, a plastics-to-property entrepreneur whose long association with Bo extended for over two decades, offered two homes in Beijing worth over 2.85 million yuan to a relative of Wang's, Xinhua said.

In return, Wang helped free three of Xu's associates that had been taken into custody in Chongqing. Xu was detained in March, the day before Bo's ouster was announced.

A former intelligence agent, Yu Junshi, who has also been detained since March, was cited as renting expensive villas for Wang, in return for the freedom of another man held by the Chongqing police. Yu had also known Bo since the 1990s.

Bo had been considered a strong candidate for the next top leadership body, which is expected to be unveiled at the party's 18th congress next month. Vice President Xi Jinping is seen as all but certain to take over as party chief and inherit the challenge of trying to heal internal wounds.

Bo's downfall has stirred more public division than that of any other party leader for more than 30 years. To leftist supporters, Bo became a charismatic rallying figure for efforts to reimpose party control over dizzying, unequal market growth.

But he had made some powerful enemies among those who saw him as a dangerous opportunist who yearned to impose his harsh policies on the entire country.

Panetta Reassures China on Military Moves

Posted: 19 Sep 2012 08:49 AM PDT

Source: Wall Street Journal By Julian E. Barnes

BEIJING—U.S. Defense Secretary Leon Panetta met Wednesday with China's presumed next top leader and urged a peaceful solution to a territorial dispute with Japan, an issue that a Chinese official said could damage upcoming trade talks and economic ties between the two Asian powers.
It also was the first public international meeting for Chinese Vice President Xi Jinping, who is widely expected to become president in an upcoming Chinese leadership transition, after canceling several others in recent weeks. His appearance following rumors of illness suggests the once-a-decade process is on track and could move forward in coming weeks.

Mr. Panetta described Mr. Xi as "very healthy and very engaged." A senior Chinese adviser told CNN that Mr. Xi had hurt his back while practicing sports.

But Mr. Xi also offered a pointed denunciation of Japan. China's state-run Xinhua news agency reported that Mr. Xi told Mr. Panetta the Japanese purchase of the islands was a "farce" and said Tokyo should "rein in its behavior."

A U.S. defense official said it was clear from the meeting with Mr. Xi that the Chinese "feel very strongly" about the Islands, which the Japanese call Senkaku and the Chinese call Diaoyu.

Separately, a spokesman for China's Ministry of Commerce said the dispute will have an impact on economic and trade relations between China and Japan, particularly talks over a potential free-trade agreement between the two nations and South Korea. "We don't want to see it happen, but Japan must take full responsibility for it," said Shen Danyang, ministry spokesman.

At a news conference in Tokyo, Japanese Finance Minister Jun Azumi vowed to continue efforts to boost financial cooperation with China. He said that acts committed by some Chinese protesters were "very disappointing," but added that "from the long-term perspective we should maintain our policy of trying to enable companies from our country to sell or make products in China in a stable manner and with a sense of ease."

Mr. Panetta is on a three-day visit to China aimed at improving military-to-military ties, addressing Chinese concerns about the U.S. reinvestment in Asian security and tamping down territorial disputes between Beijing and U.S. regional allies. It takes place after days of sometimes violent protests in China against the Japanese government's plans to buy the Senkaku islands. The protests died down Wednesday amid increasingly tight security and the heavy presence of law-enforcement personnel.

It also takes place amid the sensitivities of China's upcoming leadership change, expected to begin in coming weeks. Mr. Xi's disappearance from public view at the beginning of the month sparked rumors of illness. After last appearing in public Sept. 1, he canceled meetings with U.S. Secretary of State Hillary Clinton as well as with the prime ministers of Singapore and Denmark.

Former Hong Kong chief executive Tung Chee-hwa told CNN in an interview broadcast on Wednesday that Mr. Xi, 59 years old, had hurt his back "in sport," which he said he believed to be swimming. "He's now recovered and he's now back at work," Mr. Tung told the broadcaster. Mr. Tung is a vice chairman of an advisory body to China's rubber-stamp legislature.

On the islands issue, Mr. Panetta told reporters there were "a lot of emotions" on both sides, but suggested the importance both China and Japan place on good relations with the U.S. could help end the flare-up of tensions. "By virtue of both countries understanding how important that relationship is with the United States, if we can encourage both of them to move forward and not have this dispute get out of hand, we can play a positive role," Mr. Panetta said.

Mr. Panetta also painted a positive portrait of Mr. Xi, who appeared energetic in his joint appearance with the defense secretary at Beijing's Great Hall of the People. "He is someone who speaks frankly, speaks candidly," Mr. Panetta said. "You don't get the sense that he is pulling his punches or reading talking points, but he is someone who is talking from the heart."

The U.S. defense official said that in the meeting with Mr. Xi, Mr. Panetta echoed his public comments, that both China and Japan have a responsibility to settle the dispute peacefully.

Mr. Panetta's visit comes as the U.S. has moved to add new missile defenses and build up forces in the Asia-Pacific region. In a speech at the Armored Engineering Academy in Beijing on Wednesday, he said his message was that the U.S. was placing a renewed focus on Asia because the region was critical to its economic, diplomatic and security interests, not because Washington sees Beijing as a threat.

"Our rebalance to the Asia-Pacific region is not an attempt to contain China," Mr. Panetta said. "It is an attempt to engage China and expand its role in the Pacific."

Mr. Panetta said the U.S. wanted to create a new model for the relationship with China. Like his predecessors, Mr. Panetta emphasized that the U.S. requires a stable military-to-military relationship with China.

Have You Heard…

Posted: 19 Sep 2012 08:29 AM PDT

Have You Heard…

VIDEO: US 'could be dragged into island row'

Posted: 19 Sep 2012 10:24 AM PDT

US Defence Secretary Leon Panetta has said his country "could be dragged into" a row between China and Japan over disputed islands in the East China Sea.

China's Bo 'implicated in crime'

Posted: 19 Sep 2012 09:32 AM PDT

Xinhua news agency links fallen politician Bo Xilai to a criminal act for the first time, alleging he knew his wife was suspected of murdering a British man.

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