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BEIJING, Feb. 22 -- The Chinese central government plans to implement a new policy in the first half of this year to encourage auto industry consolidation and further the development of Chinese-brand passenger vehicles, an official from the Ministry of Industry and Information Technology said at a recent news conference.According to sources with knowledge of the new policy, it intends that Chinese-brand passenger vehicles will comprise at least half of vehicle sales by 2015 and sedans made by entirely domestic automakers will have about 40 percent of the nation's car market.Statistics from the China Association of Automobile Manufacturers (CAAM) show that 4.58 million Chinese-brand passenger vehicles were sold last year, some 44.3 percent of the total. Through an acquisition deal with Aviation Industry Corp last year, Chang'an Auto closed the biggest asset deal between State-owned auto enterprisesSales of domestic sedans hit 2.22 million units, almost 30 percent of the segment.The new policy will also focus on accelerating consolidation between automakers and could lead to a new round of reshuffling, industry insiders said.China became the world's largest auto producer and market last year with both production and sales surpassing 13.5 million vehicles due in part to government incentives.There are now more than 130 carmakers across the country, but most of them are small enterprises with annual production and sales of fewer than 10,000 units.Only five had sales of more than 1 million units last year as the country's top 10 carmakers moved a total of 11.89 million vehicles to account for 87 percent of overall sales, according to market data.Consolidation movesLast year, Chang'an Motor Corp acquired two minivan makers - Hafei and Changhe - as well as engine producer Dong'an Auto from the Aviation Industry Corp of China (AVIC), marking the biggest asset deal ever between State-owned auto companies.Chang'an is the fourth-largest motor group in China and the local partner of US carmaker Ford Motor and Japan's Mazda and Suzuki. After the acquisition, Chang'an's 2009 sales were only 30,000 units behind Dongfeng, the country's third-largest motor group.Guangzhou Automobile Group Corp, the country's sixth-biggest automaker, bought a 29 percent stake of Shanghai-listed SUV maker Changfeng Motor Co Ltd for 1 billion yuan in May last year.Beijing Automobile Industry Holding Corp, China's fifth-largest carmaker, reportedly finalized a deal last month to buy a 40 percent stake in Daimler AG's van joint venture with Fujian Motor Industry Corp.By 2012 policymakers hope consolidation will result in two to three large-scale auto groups, each with annual production capacity surpassing 2 million units, and four to five companies with annual output of more than 1 million vehicles, according to the national auto industry revitalization plan released in March last year.The current top-four Chinese motor groups are SAIC Motor Corp, FAW Group, Dongfeng Motor and Chang'an Motor. Carmakers including Beijing Automobile, Guangzhou Automobile, Chery, Geely and Sinotruk form the second tier in the country's auto industry.Going globalLi Yizhong, minister of Industry and Information Technology, said recently that in addition to fueling industry consolidation, the government will also implement measures to encourage domestic automakers in reaching overseas this year through investment, acquisition of foreign brands, building research and development facilities and developing sales networks.Industry sources said that the new policy calls for 20 percent of overall sales by major auto groups to be generated overseas in the next few years.In the wake of the financial crisis, China's vehicle exports fell sharply by 45.7 percent to 369,600 units last year, according to statistics from the General Administration of Customs. Industry analysts generally expect a rebound in car shipments this year as the foreign markets begin to recover.Despite the poor export performance, Chinese companies were aggressive in acquiring overseas assets in 2009.Homegrown carmaker Geely's bid for Swedish luxury brand Volvo received a lot of media exposure in 2009. The Zhejiang-based company will reportedly close the deal soon.Beijing Automotive bought some of Swedish carmaker Saab's core assets and technologies for 0 million last year.Li noted that along with encouraging acquisitions and consolidation, the government will restrain overcapacity in the auto industry.Li also said that the ministry will accelerate the development of new energy vehicles, including hybrid, pure electric and fuel battery models.The new policy will reportedly stipulate that Chinese partners hold at least a 50 percent share in newly built Sino-foreign joint ventures that produce core parts for alternative-energy vehicles.

TIANJIN, March 21 (Xinhua) -- The construction of a new express railway section between two cities near Beijing was kicked off Sunday, which, when completed, is expected to further speed up economic integration around the Chinese capital.The 158-km-long railway linking coastal Tianjin and Baoding in Hebei Province will shorten the journey between the two cities to less than an hour.The project is part of the railway network that covers Beijing, Tianjin and cities in Hebei."The network will serve as an important impetus for the integration of the cities around Beijing," said Wang Ailan, a researcher with the Tianjin Academy of Social Sciences.An express railway between Beijing and Tianjin was put into operation in August 2008, shortening the 120-km journey between the two municipalities to only 30 minutes from the previous 74 minutes at least.The intercity railway network is centered at Beijing and Tianjin, and all the cities covered by the network, including Hebei provincial capital Shijiazhuang and coastal Qinhuangdao, can reach each other within two hours' rail ride, according to the plan .With an investment of 24 billion yuan (about 3.5 billion U.S. dollars) and a designed speed of 250 km per hour, the section between Tianjin and Baoding will serve both passenger and freight trains.The railway between Tianjin and Qinhuangdao, which is under construction, boasts a designed speed of 350 km per hour and will cut the trip between the two cities to 50 minutes when completed. Currently, the fastest train journey between the two port cities is about two hours.A high-speed passenger rail between Beijing and Shijiazhuang is also under construction. By 2012, 11 cities in Hebei will be covered by high-speed rails, and by 2020, the intercity railways between Beijing, Tianjin and cities in Hebei will reach 710 kilometers.

BEIJING, Jan. 19 (Xinhua) -- China on Tuesday objected Japan's claim on a tiny atoll in the Pacific Ocean, saying international laws saw no justification for Japan's latest move on the atoll, some 1,700 kilometers south of Tokyo.The Japanese government reportedly submitted a bill to the congress on Monday, which proposes the protection of the coastlines of remote islands, including the so-called Okinotori island.This was widely seen as Japan's latest step to change the Okinotori into an "island", which would imply Japan's rights to claim Okinotori's surrounding area as an exclusive economic zone.But China insisted that Okinotori is merely a rock rather than an island, which can be used to claim an EEZ around."The Okinotori atoll is only about 10 square meters above the sea at the flood-tide and is nothing but a rock according to the United Nations Convention on the Law of the Sea (UNCLS)," Chinese Foreign Ministry spokesman Ma Zhaoxu told a regular press briefing Tuesday in Beijing.Japan's move to claim rights over such a large marine area, centered on the Okinotori atoll, is against international laws and would gravely damage the interests of the international community as a whole, Ma said.According to Article 121 of the UNCLS, rocks that cannot sustain human habitation or an economic life of their own shall have no exclusive economic zone or continental shelf.Japan has been trying to make the atoll a de facto island by a spate of moves in years.Since 1987, Japan has spent some 300 million U.S. dollars in building concrete wall around the Okinotori atoll, and has completed a solar-powered lighthouse on the atoll.Besides, Japan has allocated part of its fiscal 2010 draft budget for infrastructure building on Okinotori atoll to keep it from submerging into the sea."Japan's such actions and claims are obviously untenable in legal terms and other countries have also raised their concerns," Ma said. "The construction of facilities, however, will not change its legal status."Some analysts say Japan tries to create an "artificial island" to meet the international laws because the Okinotori, which lies between Taiwan and Guam in a strategically important position, could win the country an EEZ and rich resources in the surrounding sea area.Japan could claim the EEZ of about 400,000 square kilometers and continental shelf of about 740,000 square kilometers around the Okinotori atoll as long as it proves to be an "island"."The activities Japan has conducted is obviously attempting to build a artificial island, which, however, can not enjoy the same status of a natural island that can claim an EEZ around it," said Zhou Zhonghai, an expert on international laws from the China University of Political Science and Law."Japan is trying to pass a bill at home to challenge the world," Zhou added."Japan's claim has harmed other countries' interests of navigation and marine survey in the sea waters around the Okinotori, and is contrary to the principle of fairness, " said Jin Yongming, a fellow researcher from the Shanghai Academy of Social Sciences.

QINGDAO, Feb. 2 (Xinhua) -- A cold front is worsening the icing situation in the coast off east China's Shandong Province, which has just been temporarily relieved from China's worst sea ice in three decades, officials said Tuesday.North China Sea Branch (NCSB) of the State Oceanic Administration issued a sea ice alert Tuesday, the first since Jan. 27 when temperature climbed and ice started to melt.Ice in the Liaodong Bay and northern Yellow Sea extended 10 and 9 nautical miles respectively to 79 and 26 nautical miles on Tuesday, according to the NCSB.The extension of ice in the Bohai Bay and Laizhou Bay can not be measured due to heavy fog. Ice in the Liaodong Bay is likely to keep on expanding in the coming five days, said Shang Jie, a forecaster with NCSB."Icing in the Liaodong Bay and northern Yellow Sea will expand significantly and that of the other two bays will develop at a slower pace," Shang added.Icing first appeared in early January. Thick ice threatened ship navigation, anchoring and operations at ports, impacted local fishery and stranded some people on islands. NCSB had to issue sea ice alerts everyday between Jan. 12 and 27.

BEIJING, Feb. 9 (Xinhua) -- Following several reports of melamine-tainted milk products resurfacing, Chinese Vice Premier Li Keqiang on Tuesday vowed a new nationwide campaign in 2010 to ensure food safety."Food is essential, and safety should be a top priority for food. Food safety is closely related to people's life and health and economic development and social harmony," Li said at the first plenary meeting of the recently-established food safety commission under the State Council.According to Li, this year's campaign will focus on the prominent issues of food additives, edible farm products, food production processing, food circulation and import and export, livestock slaughter, the catering industry and health supplements industry, among others."We should understand the foundation for the country's food safety is still weak and the situation is grave," Li said. "We should fully realize that it is a pressing issue to ensure food safety." Chinese Vice Premier Li Keqiang(C) attends the first plenary session of the food safety commission in Beijing, capital of China, Feb. 9, 2010Media reports said melamine-tainted dairy products have resurfaced in several Chinese provinces, proof that the toxic milk powder recalled in 2008 was not destroyed and has been used.Melamine is an industrial compound which can give a false positive on protein tests and cause kidney stones. Melamine-contaminated milk products killed at least six children in 2008 and sickened 300,000.Li stressed responsibility of food producers and vendors while calling on various government departments to strengthen supervision and guidance of these companies.He urged improvement in food safety standards and the food system production check-ups, risk evaluation, accident prevention and emergency response.Li vowed to "thoroughly" investigate the latest milk scandal, destroy all tainted products and severely punish those responsible.Two managers from a dairy company and a milk powder dealer in northwestern Shaanxi Province were arrested on charges of manufacturing and selling food that does not meet hygiene standards, local police said earlier this month.Li urged the strengthening of law enforcement by increasing the frequency of inspection and expanding the supervision to clear up potential troubles and ensure people spend a happy and peaceful Lunar New Year, which falls on Feb. 14 this year.