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BERLIN - German Chancellor Angela Merkel Tuesday called for "good and intensive relations" with China.German Chancellor Angela Merkel addresses a news conference in Berlin January 15, 2008. [Agencies] "The German side is perfectly ready" to continue the sound relations with China on both economic and political levels, Merkel told a news conference in Berlin, in response to a question raised by Xinhua.The two countries have to rely on each other when it comes to international cooperation, said Merkel, who plans to visit Beijing in October for the Asia Europe Meeting (ASEM).The Chancellor said China played a "constructive role" at the climate conference held on the Indonesian island of Bali in December which laid a groundwork for a successor to the Kyoto agreement on cutting greenhouse gas emissions.She also wished China every success in hosting the Beijing Olympic Games.

China Foreign Affairs University (CFAU), the cradle of diplomats, set up a new school on Friday - the College of Diplomacy and International Relations - with former foreign minister Li Zhaoxing as the dean. Meeting students at a ceremony marking his appointment, Li highlighted the key criteria for a diplomat.Li Zhaoxing (Right), former foreign minister, receives a certificate naming him the dean of the College of Diplomacy and International Relations at China Foreign Affairs University on Friday from Wu Jianmin, university president. [Xinhua] "The most important is love for your country. This is my deepest feeling during my career at the foreign ministry," said Li."I hope graduates from this college can better serve our country, our people and contribute to peace and development around the world," he added.Li, a diplomat for nearly 40 years, retired this spring. He was appointed foreign minister in 2003, and was Chinese ambassador to the United States from 1998 to 2001.Some students said they like Li's animated style and are excited to have him as the dean."He is very friendly," said Wang Lei, a third-year student majoring in diplomacy.CFAU President Wu Jianmin said the establishment of the school reflects "a golden era" for China's diplomacy."China's diplomacy has entered a golden era, and it is in this context that the college has been set up," said Wu, who was formerly ambassador to France."Never have we seen such a big stage for us, never have people expected so much of us, and never has the world looked at China with such a high hope," he added.CFAU, established in 1955, is affiliated to the Foreign Ministry, and specializes in training international affairs experts and diplomats.
General Secretary of the Communist Party of China (CPC) Central Committee Hu Jintao and visiting Chinese Kuomintang (KMT) Honorary Chairman Lien Chan underscored peace and development across the Taiwan Straits in their meeting in Beijing Saturday. Hu Jintao (R), General Secretary of the Communist Party of China (CPC) Central Committee, meets with Honorary Chairman of the Chinese Kuomintang (KMT) Lien Chan at the Great Hall of the People in Beijing, capital of China, in this April 16, 2006 file photo. [Xinhua]"Peace and development should be the theme of cross-Straits relations, and the common goal of the people both in the mainland and Taiwan," Hu said. Lien said peace was the basis for cross-Strait prosperity and development. Compatriots from both sides of the Straits should face up to the challenges and continue to pursue peace, so as to create economic prosperity on both sides of the Straits. The mainland is creating a miracle with a growth rate of about 10 percent for 27 years, he noted. "Peace and prosperity live together, for if there is no peace, there will be no prosperity, and only peace creates opportunities for us to pursue prosperity," he said. Lien arrived on Thursday leading a KMT delegation to attend a cross-Straits economic and trade forum, which closed on Saturday. Hu extended warm congratulations on the behalf of the CPC Central Committee for the success of the forum. "The two-day forum is an important activity for the two parties to continue exchanges and dialog," Hu said. The mainland announced at the forum a new package of beneficial policies to promote cross-Straits economic and trade relations, and the participants also passed joint proposals for closer economic and trade ties across the Straits. The 15 new favorable policies announced by the mainland pointed out a new direction for the future cross-Straits economic and trade development, Lien told Hu. Hu and Lien met for the first time in Beijing a year ago when Lien, then chairman of the Taiwan-based KMT party, had an "ice-breaking" journey to the mainland. It was also the first meeting between top leaders of the CPC and KMT in 60 years. Hu called for closer personnel, economic and cultural exchanges between the mainland and Taiwan to curb Taiwan secessionist activities and maintain peace across the Taiwan Strait.
China, with a record .2 trillion of foreign-exchange reserves, will keep the "bulk" of its US dollar holdings because the currency is one of safest investment options, a People's Bank of China assistant governor said. The dollar remains "important" because trade and foreign direct investment is conducted mostly in the currency, Yi Gang told delegates at a meeting that was closed to the media at the World Economic Forum in Singapore. Asian central banks will continue to hold most of their reserves in dollars, he said. "Safety, return and liquidity are the three most important elements that people should consider when they talk about reserves," Yi said in a recording of the discussion that was obtained by Bloomberg News. "As far as we're concerned, the serious reduction of the dollar reserve is a small probability," he said, adding that any adjustments to its dollar holdings will be "incremental." China's gross domestic product expanded 11.1 percent in the first quarter, making it the world's fastest-growing major economy, led by sustained demand for its exports to the US and other trading partners. Diversification of the nation's foreign-exchange reserves will be gradual and won't hurt the dollar or financial markets, Market News International said last month, citing Ding Zhijie, one of five advisers to the reserves agency's committee. 'Gradual Process' China's trade surplus, which the Asian Development Bank estimated will climb by 45 percent to a record 7 billion next year, has sparked calls for further gains in China's yuan. Some US lawmakers have said that the yuan was undervalued by 40 percent to make China's exports cheap and pledged trade sanctions as punishment. The central bank expects the yuan exchange rate will gradually move toward a "market-oriented direction," Yi told reporters after the meeting Monday. The currency has risen about 8.6 percent since the dollar link was abandoned in July 2005. "The central bank of China has the responsibility to keep the exchange rate at more or less a stable level," Yi said. "The mechanism is more toward a market-oriented direction."
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