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HONG KONG, June 2 (Xinhua) -- Mainland-based telecommunications giants China Unicom and China Netcom, both listed on the Hong Kong stock exchange, announced Monday that each share of Netcom will be exchanged for 1.508 Unicom shares in a proposed merger. The rate was based on the price of China Netcom shares on the Hong Kong mainboard before their suspension from trading on May 23, with a 3 percent premium, said Tong Jilu, executive director and chief financial officer of China Unicom.     Chang Xiaobing, chairman and chief executive officer of China Unicom, also said each American depository share of China Netcom will be exchanged for 3.016 American depository shares of the new China Unicom, subject to shareholders' approval. (L-R) China Netcom CFO Li Fushen, China Netcom Chairman and CEO Zuo Xunsheng, China Unicom Chairman and CEO Chang Xiaobing and China Unicom CFO Tong Jilu join hands after announcing the merger of China Netcom and China Unicom in Hong Kong, South China, June 2, 2008. China Unicom also said it reached a framework agreement with China Telecom under which China Telecom will buy CDMA business and CDMA network from China Unicom Group.     The merger is expected to be completed in October this year after the shareholders' conferences in September if everything went ahead smoothly, Tong said.     The merged group, possibly bearing the name of China Unicom, will have an enlarged capital of 23.76 billion shares, worth a total of 439.17 billion yuan (63.28 billion U.S. dollars). It is expected to be a provider of integrated services including mobile and fixed-line telecommunications, broadband, data and value-added services.     "The merger is in line with the trend of convergence of fixed- line and mobile networks, and is expected to enable the merged group to set clear strategy," Chang said, referring to the direction for the company to pursue 3G strength.     China Unicom, currently one of the telecommunications giants in the Chinese mainland, is a far second to the largest mobile carrier China Mobile, while China Netcom is a provider of fixed line telecommunications and broadband services.     The merger was currently between the Hong Kong-listed China Unicom Limited and the China Netcom Group Corporation (Hong Kong) Limited, but not a merger between their mother companies, Chang told a press conference held in Hong Kong.     China Netcom will cease to exist as a listed firm after the merger, subject to approval from the shareholders at the company's annual conference, which is expected in September, said Zuo Xunsheng, chairman and chief executive officer of China Netcom.     Shares of both companies will resume trading on Hong Kong exchange on Tuesday.     The merger was part of a major regrouping in the Chinese telecom industry aimed at more competition by forming three providers of integrated services after regrouping.     State authorities issued an announcement on May 24, saying that they "encouraged" a regrouping of the telecom corporations to form three providers of integrated services to increase market competition. China Mobile has recently announced a proposal to buy fixed-line operator China Tietong, or Railway Telecommunications.     At a separate press conference in Hong Kong on Monday, the HongKong listed China Telecom announced that it has reached an agreement to buy the CDMA services of China Unicom, thus making it one of the three integrated services providers, too.     China Unicom also announced at the conference that it will sell its CDMA services at 43.8 billion yuan (6.31 billion U.S. dollars)and that its mother firm China Unicom Group will sell its CDMA network at 66.2 billion yuan (9.54 billion U.S. dollars) to China Telecommunications Corporation, the mother firm of China Telecom.     Speaking at a separate press conference in Hong Kong, Wang Xiaochu, chairman and chief executive officer of China Telecom, said that the deal is expected to be completed in October, subject to shareholder approval at annual conferences in September.     China Telecom will pay for the transaction in cash, Wang said, adding that he expected the CDMA part to contribute net profit as early as 2012, although the deal could impact the earnings record of the company in short term.     The regrouping will result in three separate providers of integrated services, with most of the analysts saying that they expected China Unicom to benefit the most from the regrouping whereas the strength of China Mobile could be reduced.     Others, however, said they expected China Mobile to remain the giant among the giants and retain most of its power in the mainland telecom industry.     Chang, head of China Unicom, also warned against "over optimism" about the increased strength of the merged company, saying it required long-term effort.

BEIJING, July 9 (Xinhua) -- The parties involved in the Korean Peninsula nuclear talks held intense bilateral meetings here to pave the way for the discussions between chief negotiators, which are scheduled for Thursday afternoon. Kim Sook, chief negotiator of the Republic of Korea (ROK) delegation, met with his U.S. counterpart Christopher Hill and Chinese chief delegate Wu Dawei on Wednesday.    After the bilateral meetings, Kim told reporters that he felt neither "optimistic" nor "pessimistic" about the six-party talks, and each party needed to cool down and detail the relevant issues. Wu Dawei (R), China's top negotiator on Korean Peninsular nuclear issue, meets with his South Korean counterpart Kim Sook in Beijing, capital of China, July 9, 2008. The heads meeting of a new round of six-party talks on Korean Peninsular nuclear issue will be held here on July 10.     Hill, after meeting with the ROK side, said they touched upon issues including the verification process for the Democratic People's Republic of Korea (DPRK) denuclearization, fuel aid to the country, food shipments and other issues.     Hill said he is scheduled to have a breakfast meeting on Thursday with Russian chief delegate Alexei Borodavkin, after which there will be a trilateral meeting of China, the United States and Russia, with the aim of fully preparing for the six-party talks in the afternoon.     Hill met with the DPRK delegation soon after he arrived in Beijing on Tuesday afternoon, saying that denuclearization verification, including documents, site visits and interviews, would be a focal point in the upcoming meeting.     Under an agreement reached in October, the DPRK agreed to abandon all nuclear weapons and programs and declare all its nuclear programs and facilities by the end of 2007, in exchange for diplomatic and economic incentives.     The DPRK submitted its nuclear declaration to China on June 26 and demolished the cooling tower at the Yongbyon nuclear reactor on June 27, though it missed the deadline.

BEIJING, July 25 (Xinhua) -- The Olympic Media Village opened on Friday for 21,600 domestic and foreign registered reporters, amid some foreign media's concerns about free reporting in China.     Friday's People's Daily, the mouthpiece of China's ruling party, ran a commentary appealing to administrations and common people to "befriend the media."     "To serve the media is to serve the Olympic Games," the article said. "To befriend the media is to befriend the audience."     About 30,000 reporters are expected to cover the Games, the most in Olympic history, which means the number in the audience could be the highest ever too.     "It is through the media that the audience across the world are learning about the Olympics, China and Beijing," the newspaper said. Volunteers provide service for reporters at an entrance to the media village for the Beijing 2008 Olympic Games in Beijing, July 25, 2008. The media center opens on Friday to journalists from all around the world.The Beijing Organizing Committee of the 29th Olympic Games (BOCOG) and Chinese government obviously have a full understanding of the role media will play in the coming grand sport event.     In early this month, Chinese Vice President Xi Jinping included well serving the media in the top eight tasks of the last-minute preparation for the Games.     "We should provide a good service to the media according to the promises we made, international practice and Chinese laws. Through rich Olympic news, we are to share the joy of the Games with people worldwide," he said in the speech to officials 30 days before the start of the Games.     Beijing has opened three media centers, the Main Press Center (MPC), the International Broadcast Center (IBC) and the Beijing International Media Center (BIMC). The former, on the Beijing National Olympic Green Convention Center, covers 150,000 square meters, the largest in Olympic history. The latter, to receive about 5,000 non-registered reporters, is of 60,000 square meters. A reporter checks in at the media village for the Beijing 2008 Olympic Games in Beijing, July 25, 2008. The media center opens on Friday to journalists from all around the world. In the first 12 days since their opening, 23 press conferences have been held at the MPC and BIMC.     At the BIMC website, phone numbers of ministries in China's central government are publicized. At the center, printed manuals about covering news outside Beijing are offered with contacts of local governments and major enterprises.     About 150,000 guides about China and the Games written in 19 languages have been handed out. And the BIMC staff have received and processed more than 200 requests for interviews, half from foreign media.     Although worries about free news reporting are lingering, covering news in China has undergone notable changes.     A regulation on reporting activities in China by foreign media during the Games and the preparatory period has, since January last year, lifted several rules over foreign reporters. They no longer need approval from the local government's foreign affairs department but only agreement from the people or organizations to be interviewed. Reporters walk to their rooms at the media village for the Beijing 2008 Olympic Games in Beijing, July 25, 2008. The media center opens on Friday to journalists from all around the world.Local authorities are urged to cooperate with media even when the interview involves sensitive topics such as environmental protection, AIDS and housing displacement.     They are also cooperating in response to media requests such as to give live report from the Tian'anmen square, China's political symbol, to import satellite news operations, to hire helicopters for shooting and set up cameras in some popular tourists sites.     "We could regard the Olympics as a chance to push the country to open to global media," said Ren Zhanjiang, dean of the Department of Journalism and Communication, China Youth University for Political Sciences.     Some changes will continue after the Games. In April last year, the Chinese government issued a regulation asking administrations to publicize information that the public should learn about. The law on emergency responses, adopted in August 2007, cancelled an item in its draft that banned media from reporting emergencies without permission from the authority.Reporters from all around the world check in at the reception of the media village for the Beijing 2008 Olympic Games in Beijing, July 25, 2008. The media center opens on Friday to journalists from all around the world.It was implemented when the devastating May 12 earthquake jolted southwest China. The first news about the earthquake came minutes after tremors were felt while the death toll, which used to be a taboo in disaster news reporting, was announced and updated daily until now. A day later foreign correspondents were reporting news on the earthquake ruins, and continued to do so.     The country faced criticism for not allowing any foreign media to enter Tibet immediately after the Lhasa violence on March 14, although reporters already there were allowed to continue to report until their permits ran out. Chinese news stories were publicized straight after the incident happened in the Tibetan city, including TV footage about violent attacks on the street. This surprised Chinese audiences who have become used to a diet of positive news.     As the International Olympic Committee said in its report when choosing Beijing to host the 2008 Olympic Games, the Games would leave a unique legacy to China and to sport. There are reasons to believe that part of the legacy will be a country opening wider to the world.

BEIJING, Sept. 12 (Xinhua) -- A preliminary investigation confirmed the contaminated Sanlu baby milk powder as the cause of kidney stones in infants after a first-phase probe by experts, China's Ministry of Health said here on Friday.    An investigation team jointly organized by departments including the health, public security, agriculture ministries and quality watchdog examined the urine and kidney stones of the infant patients and found the substance melamine therein.     The investigation team, which is in Shijiazhuang, Hebei Province, where dairy producer Sanlu Group is based, is now coordinating with the local government to investigate the incident.     "Those responsible for the contaminated milk will face severe punishment," said an official with the team.     The team arrived in Hebei on Friday. After listening to the local government's report on its handling of the incident, they collected samples and documents from the Sanlu Group and the local quality testing agency. They also visited the affected babies in local hospitals and gave advice on the treatment.     Sanlu, one of China's leading dairy producers, found during an internal company investigation in August its powdered milk products were contaminated with melamine, according to the team's investigation. Parents of the babies with kidney stones tell the reporter about their kids' drinking state at a military hospital in Lanzhou, capital of northwest China's Gansu Province, Sept. 11, 2008. So far this year, Gansu Provincial Health Department has seen 59 kidney stone cases in infants, and at least one baby died as a result of kidney stones. Most of them live in rural areas of the province. There were no such cases in 2006 or 2007The statement didn't say why the company didn't release the findings until news reports exposed dozens of babies became sick with kidney stones after consuming the Sanlu brand of baby milk powder for a prolonged period.     Health experts said melamine is a chemical raw material. Ingestion can lead to stone formation in the urinary tract.     A thermosetting plastic, melamine has an appearance similar to milk powder. It is widely used in manufacturing fabric, glue, housewares and flame retardants.     "The substance gives the appearance of a high nitrogen level, which is an index to measure the protein content in food," a health expert told Xinhua. He declined to be named.     One baby in the northwest Gansu province died from the stones. At least 59 cases had been reported in Gansu and other provinces.     Sanlu had sealed off 2,176 tons of contaminated milk powder and recalled 8,210 tonnes from the market. There were still 700 tonnes in circulation. All the contaminated formula was produced before Aug. 6.     Supermarkets in some provinces had started to pull the milk powder off shelves.     The Health Ministry said on Friday it had launched a nationwide investigation into the contaminated milk formula. All local health agencies were to report cases of infants with kidney stones immediately. It also issued a treatment plan on its website (www.moh.gov.cn) to help hospitals deal with sick babies.

BEIJING, Aug. 7 (Xinhua) -- Efforts should be made to increase power production and guarantee supply for both the Olympic Games and stable economic operation, said Vice Premier Li Keqiang on Thursday.    With the summer energy consumption peak and the Games, power supply is a heavy task for relevant organizations, Li, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, said while inspecting Datang Group, a major power supplier in Beijing.Li Keqiang (C), Chinese Vice Premier and member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, inspects Datang Corporation in Beijing, capital of China, Aug. 7, 2008.He said that to ensure safe, stable power supply and generation, enterprises should pay special attention to production safety and improve the management and maintenance of power facilities.    He also urged all organizations to use energy-saving technologies and products and promote education on energy-saving among the public to reduce energy waste.