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Chairman of the US Joint Chiefs of Staff Marine Gen. Peter Pace inspects the guard of honor during a welcome ceremony at the Defence Ministry in Beijing March 22, 2007. [Reuters]"Clearly, both the United States and China have enormous military capacity, but equally clearly neither country has the intent to go to war with the other. So absent of intent, I don't find threat," General Peter Pace, chairman of the Joint Chiefs of Staff said. "We should not focus on how to fight each other but how to prevent military action. That is what my government is focused on, and that is what my Chinese counterparts here have said their government is focused on." Pace arrived in Beijing Thursday for a four-visit which as he said is aimed at boosting military ties Pace said he had discussed the sensitive topic of Taiwan with the Vice Chairman of the Central Military Commission, Guo Boxiong, Defence Minister Cao Gangchuan and Foreign Minister Li Zhaoxing. "It is not surprising that in each of the meetings, the issue of Taiwan came up. It is clearly a fundamental issue with China," he said. Asked about the possibility of a conflict over Taiwan, he said: "I believe there are good faith efforts among all the leadership to prevent that." Pace said he had repeated US President George W. Bush's position that the US leader "would not support Taiwan independence" and that Washington wanted the issue to be handled peacefully. Pace's visit follows a US announcement last month that it plans to provide over 400 missiles to Taiwan.China's military is proposing officer exchanges and other confidence-building measures with the US Army and may be inching closer to setting up a "hotline" for emergency communication with Washington, according to Pace. Pace said he immediately agreed to study the proposals put forward Friday by Gen. Liang Guanglie, chief of the PLA's General Staff Department. "To me this was a very good, open discussion and one that I found very encouraging," Pace told reporters in Beijing. Liang's proposals included sending Chinese cadets to the Army academy at West Point as well as participating in joint exercises and humanitarian and relief-at-sea operations "that might be able to build trust and confidence amongst our forces." Military exchanges were largely suspended following a collision between a US spy plane and a Chinese jet fighter over the South China Sea in 2001.  Pace said the sides agreed to keep discussing setting up a "hotline" between either military or civilian leaders that would help ease any future friction. "The Chinese military understands as well as I do that the opportunity to pick up the phone and talk to somebody you know and smooth out misunderstandings quickly is a very important part of relations between two countries," Pace said.

GUANGZHOU: Doctors in this city have developed a new birth control surgery for men that could be made available to the public starting next year.The method involves making a small incision along the testicle. Doctors then place a tiny tube, about the size of a match, into the opening.The tube functions as a filter that blocks sperm, Wu Weixiong, the director of Guangzhou Family Planning Technology Center, said.The surgery has already been patented, and the health department will promote it as soon as it is approved by the National Food and Drug Administration, Zhu Jiaming, the vice-president of the Guangzhou Sexology Association, said.He expects approval to be granted by next year."The success rate for this form of birth control is 97 percent," he said.The tube can be removed without negatively affecting a man's sexual health, he said.Wu said the operation takes just 10 minutes. However, it is very difficult and requires highly skilled doctors.He said only a few hospitals have the staff and facilities necessary to carry out the procedure. However, training courses will soon be made available to local doctors.Wu said he believed enough facilities and manpower would be available to handle the demand for such operations by the time the procedure is officially approved."The success rate of the operation is almost 100 percent," Duan Jianhua, an official of Guangzhou population and family planning commission, said.Research on the operation started four years ago in Beijing. It was led by the science and technology institute of the National Population and Family Planning Commission and Guangzhou family planning science and technology institute.Wu said the technique was developed through more than 1,600 clinical trials all over the country. More than 500 men in Qingyuan, a city in Guangdong Province, have already had the operation. All the trials were successful and none of the subjects has experienced any side effects.Zhu Jiaming said the operation costs just a few thousand yuan, which is affordable for most people in China."When the technique is available, couples will have one more option for birth control, and married women do not have to install an intrauterine device (IUD) anymore," Zhu said.The public seems ready."I welcome this technique. It makes me feel women are more respected by society than before," Liu Jun, a woman in Guangzhou, said.A survey by the Guangzhou-based New Express Daily found that about 60 percent of Guangzhou residents welcomed the surgery and supported its promotion.

Geneva - China urged the United States on Friday to correct its anti-dumping and anti-subsidy measures targeting Chinese coated paper, reiterating that these measures violate World Trade Organization (WTO) rules.In consultations held in Geneva, Chinese officials questioned the consistency of the US measures with WTO regulations, and urged the United States to consider China's concerns seriously and correct its measures, said a statement from the Chinese WTO mission.The two sides also clarified some matters in the dispute and agreed to continue their contact on the issue, the statement said.Friday's consultations were held under the WTO's dispute settlement mechanism. China brought the case to the WTO's Dispute Settlement Body on September 14.According to Chinese trade officials, from November 2006 to July 2007, the United States launched five anti-dumping and anti- subsidy investigations into Chinese coated paper and steel tubes, which involved 635 Chinese enterprises with 70,000 employees and goods worth US0 million.Five dual investigations against Chinese products in less than a year was unprecedented in the history of world trade, the officials said.According to the Chinese Ministry of Commerce, the US decision not only violated WTO rules, but also went against a 23- year-old US bipartisan policy.

China's production of natural gas rose 23.1 percent last year, faster than in 2006, to 69.31 billion cubic meters as the country used more "clean" energy, an industry association said.In 2006, output jumped 19.2 percent to 58.55 billion cubic meters, the China Petroleum and Chemical Industry Association (CPCIA) said. It also said that output would likely hit 76 billion cubic meters this year. China used 55.6 billion cubic meters of gas in 2006, an increase of 21.6 percent from a year earlier, according to statistics from BP.China has set a target of raising the proportion of natural gas in its total energy consumption to 5.3 percent in 2010 from 2.8 percent in 2005, amid efforts to curb pollution. Coal now accounts for about 70 percent of total energy consumption.The expansion of the natural gas infrastructure, including pipelines, reflected the rapid increases in output and consumption, the CPCIA said.China plans to start building a second east-west gas pipeline this year. The first such pipeline went into commercial operation in 2004.The new pipeline is scheduled to become operational in 2010 and will have a designed annual transport capacity of 30 billion cubic meters. It will mainly move natural gas from Central Asia to the Yangtze and Pearl River Deltas, the country's two most developed regions.Construction on another pipeline, which will link the Puguang Gas Field in the southwestern province of Sichuan, one of the country's largest, with the Yangtze River Delta, started last August.

NEW YORK - The overheating of the Chinese stock market is a structural problem that will be resolved by developing more financial products and cracking down on illegal activities, a Chinese securities regulatory official said Thursday. Hu Bing, deputy director-general of the market supervision department at the China Securities Regulatory Commission, said at a conference in New York that authorities are seeking to roll out more products to broaden investors' options, such as real estate investment trusts, or REITs, as well as listed infrastructure funds. Other eventual offerings will include derivatives products such as stock-index futures and warrants. These products will be launched "when conditions are ready," Hu said at a China Investment Forum sponsored by Merrill Lynch and Institutional Investor. He said he couldn't provide a clearer timeline for when those products would be ready. Hu acknowledged a "liquidity surplus problem" that is contributing to the overheating of the Chinese stock market and noted that hot-money inflows coming in through illegal channels are exacerbating the problem. Tackling the liquidity issue is a long-term project that "cannot be resolved just by (raising) the interest rate," Hu said. "So the structural problem has to be resolved using structural measures." Earlier this week, the Chinese government tripled its stamp tax on stock trades in an effort to rein in the equity market. The Shanghai Composite Index more than doubled in 2006 and is still up around 50 percent so far in 2007. Hu said China's capital markets are still young and face a "golden opportunity" to develop their depth and breadth. The majority of individual investors rely on rumors or inside information to make their decisions, leading to speculative gains in stocks, he said. Hu said authorities are stepping up efforts to crack down on insider trading, "but because this is a transitioning society in an emerging market, it will take a long time."