China Economy Weekly: Southeast Asia’s Robust Trade; High-Speed Railways; China Becomes Hydro Superpower

China-ASEAN Trade Rises:  Trade value between China and the Association of Southeast Asian Nations (ASEAN) rose 49.6% year-on-year in the first seven months to $161 billion, with ASEAN enjoying a surplus of $7.54 billion.

High-speed Railways in South China to:  China will complete 5,000 kilometers of high-speed railways in the mainland's southern region by 2012 to accelerate ieconomic integration with Hong Kong and Macao.

The railways, to be laid in the sprawling pan-Pearl Delta region of eight provinces and an autonomous region of the mainland, will account for nearly 40& of the country' total in the next three years.

Chinese Coal Mines:  The Chinese Government has stressed the need for the country's coal mine enterprises to continue with mergers and acquisitions for the healthy development of the industry.

The statement was issued following an executive meeting of China's State Council, chaired by Premier Wen Jiabao.

The government will also introduce preferential measures on finance and taxation to support the upgrade of safety technologies of the merged enterprises, and it said it will protect workers and investors' rights by law during the merger and acquisition process.

Government Expenditure up 134%:  China's government expenditure surged 134.3% in the first seven months of 2010 as compensation for land purchases grew rapidly.

From January to July, the spending was 1.32 trillion yuan ($194 billion). Total revenue reached 1.8 trillion yuan, up 146%.

Chinese Economy to Stabilise?:  The Chinese economy will start to stabilise in the fourth quarter after the recent marked slowdown due to government measures, but it might face risks next year as external demand weakens, Ben Simpfendorfer, chief China economist at the Royal Bank of Scotland (RBS) has.

China's purchasing managers' index (PMI), a leading indicator of economic health, has fallen for two consecutive months to 51.2% in July, barely above the expansive baseline of 50%.

State Enterprises to Hire Overseas Managers:  More than a dozen State-owned enterprises will hire new managers by the end of the year after a worldwide recruitment campaign, the States Assets Supervision and Administration Commission (SASAC) announced.

Four general managers and eight assistant managers will join during the eighth and largest global hiring programme.

The new hires are part of the nation's "1,000-talent" initiative offering high salaries and attractive funding to overseas employees who want to work in China.

China Becomes Hydro Superpower:  As all generating units began running at Xiaowan Hydropower Station in the southwestern Yunnan province, China's capacity became the world's largest.

The new 700,000 kilowatt-unit at Xiaowan sent China's installed hydropower capacity just above 200 million kilowatts and marked the completion of the 4.2 million-kilowatt project, China's second-largest hydropower plant after the Three Gorges.

With a total investment of 40 billion yuan ($5.86 billion), Xiaowan can produce 19 billion kWh of electricity every year.

China This Week: Geological Disasters; US-Chinese Relations; Carbon Emissions

Geological Disasters Spike: China recorded more than 26,000 geological disasters in the first seven months of this year, nearly 10 times the number in the same period last year, Minister of Land and Resources Xu Shaoshi said on Friday.

The disasters, ranging from landslides to ground subsidence, left 843 people dead or missing and led to direct economic losses of more than 3.34 billion yuan ($491 million), Xu said.

Xu attributed the disasters to frequent extreme weather such as severe droughts and rainstorms, as well as to the impact of seismic activities.

Four dead, 88 missing after mudslides: Four people have been confirmed dead and 88 others are still missing Thursday after mudslides hit a remote mountain town in southwest China's Yunnan Province.



Days of torrential rain triggered the mudslides, local officials said.

Torrential rains have wreaked havoc across China this summer, with the worst flooding and landslides in decades. Massive mudslides on 8 August 8 in Zhouqu county, in Gansu Province in northwestern China, have left 1,287 people dead and 457 missing.

China “Not a Threat” in Latin America: The US does not view China as a threat in Latin America and Washington is in talks with Beijing on cooperation in the region, long considered America's backyard, a senior US official said on Wednesday.

While China's trade share in Latin America is small, the potential is huge and there are many areas of possible cooperation, said Arturo Valenzuela, Assistant Secretary of State for Western Hemisphere affairs, as he arrived in China for a five-day tour. However, Valenzuela added, "We are talking generally we haven't come up with any concrete steps".

The Obama Administration's top diplomat for Latin America said he regarded China's accession to the Inter-American Development Bank (IDB) as well as official observer status at the Organization of American States (OAS) as positive moves.

China Criticises US Military Report: China on Wednesday lashed out at a Pentagon report on Beijing's defense capabilities. "Issuing this report is not beneficial for the improvement and development of China-US military ties," Senior Colonel Geng Yansheng, spokesman for the Ministry of National Defense, said.

The report, issued on Monday after a five-month delay, devoted a whole chapter to blaming the current impasse in China-US military contacts on Beijing. Military contacts were frozen in January after Washington pressed for a $6.4-billion arms deal with Taiwan.

In June, China rejected a proposed visit by US Secretary of Defense Robert Gates.

China envoy visits North Korea: Wu Dawei, China's special representative for Korean Peninsula affairs, visited the Democratic People's Republic of Korea from 16-18 August, the Chinese Foreign Ministry said Thursday.

Wu exchanged views with the North Koreans on maintaining the peace and stability of the Korean Peninsula and on restarting the six-party talks on North Korea's nuclear programme.

China, Mongolia Military Co-operation: The Chinese andMongolian militaries should continue exploring new areas of co-operation, said Ma Xiaotian, deputy chief of the General Staff of the Chinese People's Liberation Army, as he meeting Bor Baatar, Secretary of State of Mongolia's Defense Ministry, on Friday.

The two sides also exchanged views on regional security.

China Maritime Hotline with Japan?: China has proposed establishment of a maritime emergency hotline with Japan to prevent civilian and military clashes in the East China Sea and other waters, sources from both governments have said.

The measures raised by Beijing include an annual meeting, a conference to discuss emergency situations, and sharing of frequencies and signals used by ships and airplanes during emergencies.

Beijing has already established hotlines with Seoul and Washington.

China, IAEA to Ink Nuclear Safety Deal: China and the International Atomic Energy Agency (IAEA) are expected to sign an agreement on nuclear safety as the UN nuclear watchdog's chief, Yukiya Amano, visits China.

The two sides will boost cooperation in personnel training and nuclear safety in East Asia and across the world, according to a draft of the agreement.

Carbon Reduction Locations: The National Development and Reform Commission (NDRC), China's top economic planning body, said on Wednesday that it has selected pilot carbon cities to address the nation's carbon emissions issues.

The NDRC has selected five provinces --- Guangdong, Hubei, Liaoning, Shaanxi, and Yunnan --- and the cities of Tianjin, Chongqing, Hangzhou, Xiamen, Shenzhen, Guiyang, Nanchang, and Baoding.

Each area is required to draft a plan to reduce carbon emissions and develop a green economy for China's 12th Five-Year Plan (2011-2015).

The country pledged to reduce its 2005 carbon intensity rate --- the amount of carbon dioxide produced per unit of GDP --- by 40 to 45% before the end of 2020.

China to Spend Billions on Forestation: China's government will earmark a total 200 billion yuan ($30 billion) to forestation schemes to the end of 2021, the State Forestry Administration (SFA) announced Wednesday.

China had 195 million hectares of forests by the end of 2008, according to the most recent survey.