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BEIJING,Aug 17(Xinhuanet) -- China reduced its holdings of U.S. Treasury debt for a second straight month in June while the holdings of Japan and Britain rose.China's holdings fell by billion to 3.7 billion, a decline of 2.7 percent, the Treasury Department said Monday in a monthly report on debt holdings.Total foreign holdings of Treasury securities rose .6 billion to a total of trillion, an increase of 1.2 percent.The debt figures are being closely watched at a time when the US government is running up record annual deficits. A drop in foreign demand would lead to higher interest rates in the United States. The yield on Treasuries rises when fewer people invest in them.It would start with the US government paying more interest on its .3 trillion national debt and then ripple through the economy. Consumer loans such as home mortgages and auto loans track the yields on Treasurys, so they could rise, too.So far, interest rates in the United States have remained extremely low. A weak economy has depressed borrowing by the private sector and the Federal Reserve has kept a key interest rate at a record low level of zero to 0.25 percent in an effort to spur stronger growth.US interest rates have also been kept low by the European debt crisis in the spring. That triggered more investment in US Treasurys, which are considered the safest investment in the world because the US government has never defaulted on its obligations.China is the largest foreign holder of Treasury securities. The billion decline in China's holdings in June followed a .5 billion drop in May. China's holdings had hit a high for this year of 0.2 billion in April.There are concerns that China could influence US interest rates by rapidly selling off its holdings of US debt. That could lead others to dump their holdings and result in a spike in interest rates.But analysts say China is more likely to sell a little bit at a time."While it would hurt the United States if China started selling off our securities, it would hurt China just as badly because it would drive down the value of their holdings," said David Wyss, chief economist at Standard & Poor's in New York.Wyss predicted that China will slow its acquisition of new US government debt while diversifying its holdings. Wyss said that process has already begun, noting China's recent acquisition of energy and other natural resource holdings in Latin America and Africa.Japan, the second largest foreign owner of Treasury bonds, increased its holdings in June to 3.6 billion. That's an increase of .9 billion or 2.5 percent. Britain's holdings rose 3.5 percent to 2.2 billion.Japan had for years been the No 1 holder of Treasury securities, but was overtaken by China in September 2008.New government data showed that Japan lost its place as the world's second largest economy in the second quarter of this year. China moved up from No 3 to the No 2 spot, behind the United States.While the data on total economic output was for the second quarter, analysts believe China is on track to surpass Japan for the entire year and become the world's second largest economy.The US Treasury report said that net purchases of long-term securities, a category that covers not only US government debt but also debt of US companies, increased by .4 billion in June after rising .3 billion in May.
ULAN BATOR, Aug. 16 (Xinhua) -- Mongolian Prime Minister Sukhbaatar Batbold Monday discussed bilateral ties here with Wang Jiarui, head of the International Department of the Communist Party of China (CPC) Central Committee.Batbold, also chairman of the Mongolian People's Revolutionary Party, said Mongolia will continue to work with China to add new substance to the Mongolia-China good-neighborly partnership of mutual trust and push the ties between the two parties and countries to a new stage.He said the partnership has moved forward smoothly in recent years, and the two parties have continuously deepened their exchanges and cooperation in various fields.Developing its ties with China is among the priorities of the foreign policy of the Mongolia's government, and is in the interests of the two peoples, he added.Wang, for his part, conveyed the sincere greetings and good wishes of President Hu Jintao, Premier Wen Jiabao and other Chinese leaders to Batbold.Wang said China would like to make joint efforts with Mongolia to implement the important consensus reached between leaders of the two countries, and take into account each other's core interest and major concerns. The two sides should push their bilateral partnership to a new high, and bring tangible benefits to the two peoples so that they can forever be good neighbors, friends and partners, he added.Wang kicked off the visit to Mongolia Sunday.

HUZHONG, Heilongjiang, July 1 (Xinhua) -- More than 20,000 firemen are battling lighting-triggered forest fires in northeast China as continuous hot weather undermines their efforts, forest fire prevention authorities said.The fire, spotted Saturday, continued to spread Wednesday due to high temperatures after having weakened overnight, said Sun Zhagen, deputy director of China's National Forest Fire Prevention Headquarters.The forest fire first occurred in a part of the Greater Hinggan Mountains in Inner Mongolia Autonomous Region and then extended to the neighboring Heilongjiang Province.Rescuers were still struggling to put out the fire at more than 30 sites in the two regions, said a spokesman with the fire fighting headquarters at Huzhong, a major fire site.Further, another 6,000 fire fighters and additional equipment would be sent to control the fire in Heilongjiang, said the spokesman."As it is too hot to get close to the scene to put out the fire, we have to build fire barriers during the day and battle the blaze at night," said Pang Zhiqiang, a forest policeman.Sparks are being buried under the burnt debris of wood, often as deep as 30 cm and easily set on fire again by wind, said rescuers at Huzhong District."We felt thirsty, dizzy and had trouble breathing after staying in the burnt forest for just 10 minutes", one fireman said.Each of the rescuers, carrying about 25 kg of equipment on his back, could only carry four bottles of drinking water, a rescuer with the Heilongjiang forestry police force told a Xinhua reporter. "If the bottle water is not enough, we drink the river water, though there are worms in it."Some thirsty fire fighters said they even dug into the ground and breathed in the moisture. Also, many rescuers have become exhausted after remaining awake and working for four days.Temperatures in the Greater Hinggan Mountains Region have been hovering over 37 degrees Celsius recently and seven counties and districts have witnessed record-high temperatures, said Na Jihai, chief of the Heilongjiang Provincial Meteorological Bureau.Temperatures in Huzhong District hit 39.7 degrees Celsius Saturday, Na said.Fire-control experts in Inner Mongolia also said such an extremely-hot weather was rarely seen over the past six decades.The two regions have dispatched three aircraft and 10 cloud seeding rockets to conduct artificial precipitation operations, according to local meteorological departments.The dry and hot weather will continue for the next three days, but a light rain is forecast for Thursday, according to the National Meteorological Center of China Meteorological Administration."This is a battle between human beings and nature. We have to work hard to win," Sun Zhagen said.
BEIJING, July 2 (Xinhua) -- China and Vietnam agreed Thursday to properly deal with the maritime territorial issues in the South China Sea.This is one of the five consensus decisions made at the fourth meeting of the China-Vietnam steering committee on cooperation, which was co-chaired by Chinese State Councilor Dai Bingguo and Vietnamese Deputy Prime Minister and Foreign Minister Pham Gia Khiem.China and Vietnam signed a package of agreements on the demarcation of their 1,300-kilometer land boundary last November. During the signing ceremony, the two nations agreed to begin discussions to formulate the guidelines to solve the sea issues.Khiem reaffirmed Thursday that Vietnam was willing to work with China to properly handle the sea issues in light of the overall situation of bilateral relations and the friendship between the two peoples, as well as the need to maintain stability.During the meeting, China and Vietnam also agreed to further increase political exchanges, deepen economic and trade cooperation, strengthen cultural exchanges as well as enhance coordination on major international and regional issues.Citing that this year marks the 60th anniversary of the establishment of China-Vietnam diplomatic ties and the China-Vietnam Friendship Year, Dai said the bilateral relations were at a crucial period of inheriting the past and forging ahead into the future.The 60-year history of bilateral relations prove that developing China-Vietnam friendship is in the fundamental interests of the two countries and the two peoples, said Dai, adding it is also conducive to the peace and prosperity of the region.He said that since the third meeting of the China-Vietnam steering committee on cooperation last year, the pragmatic cooperation between the two countries had achieved new progress.He mentioned growing political exchanges, productive mutual beneficial cooperation, dynamic cultural exchanges, progress in dealing with boundary issues, and closer coordination and mutual support on major international and regional issues.Dai stressed that, in light of the future development of bilateral relations, the two sides should always bear in mind the general situation and take a long-term perspective while maintaining good neighborly friendship.He further called on the two sides to learn from each other so as to achieve common development, and to increase mutual trust and understanding to appropriately cope with problems through friendly negotiations.China is ready to work with Vietnam to steer the development of bilateral relations from a strategic height and use the China-Vietnam steering committee on cooperation as a platform to push forward the bilateral comprehensive strategic cooperative partnership, said Dai.Khiem said it was the firm position of the Vietnamese party and government to continuously enhance the Vietnam-China comprehensive strategic cooperative partnership, which was also the priority of Vietnam's foreign relations.Vietnam always remembers China's support and help for its revolution and construction and is committed to developing a long-lasting friendship with China, he stressed, adding Vietnam was willing to work with China to enhance cooperation in various areas.
BEIJING, July 7 (Xinhua) -- Top Chinese political advisor Jia Qinglin Wednesday said emphasis must be put on improving the living standards of Tibetan farmers and herdsmen.Jia, chairman of the National Committee of the Chinese People's Political Consultative Conference, made the remarks at a conference on deploying "pairing assistance" for Tibet.Under the "pairing assistance" model, which was initiated 15 years ago, other provinces or cities provide technological and financial support, among other things, for the development of areas where Tibetans predominantly live, namely the Tibet Autonomous Region and areas in Sichuan, Yunnan, Gansu and Qinghai provinces.Jia Qinglin (3rd R), chairman of the National Committee of the Chinese People's Political Consultative Conference, speaks at a conference on deploying "pairing assistance" for Tibet, Beijing, capital of China, July 7, 2010.Xinhua/Yao Dawei)Jia said the "pairing assistance" is a central government strategic initiative and is crucial to the leapfrog development and lasting stability in Tibet and Tibetan areas in the four provinces.Jia said major projects launched to support Tibet's development should be incorporated into the national social and economic development plan for the next decade, which is currently being compiled.He also said the fight against the separatist forces led by the ** clique should be deepened so to sustain social stability in Tibet and Tibetan ethnic areas.
来源:资阳报