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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.

PARIS, Aug. 5 (Xinhua) -- Police in China and France have dismantled a network that tried to smuggle Chinese migrants into Italy and Spain on boats, officials said Thursday.The French Immigration Ministry said several members of the network headed by a Chinese national living in Paris and a number of illegal immigrants were arrested July 27 during simultaneous operations in France and China. The ministry did not detail the number of arrests.Investigations showed that each illegal migrant paid between 12,000 (15,852 U.S. dollars) and 15,000 euros (18,915 U.S. dollars) to book a ticket to Europe.France hailed police efforts and called for stronger cooperation ties with China to crack down on human trafficking."I congratulated the teams ... for dismantling an important network of illegal immigration from China, to Italy, Spain and Luxembourg, whose principal organizers were based in Paris and Shanghai," said Eric Besson, the French Minister of Immigration, Integration, National Identity and Solidarity Development.

BEIJING, July 3 (Xinhua) -- Chinese Vice Premier Li Keqiang on Friday solicited opinions from ten medical experts on the ongoing health care reform during a discussion in Beijing.The experts, including medical professors and hospital presidents, offered advice on some of the top issues in health care reform such as the reform of state-owned hospitals, the establishment of health care service networks at different administrative levels, and the fostering of general practitioners.Li, in charge of the national reform of the health care system, urged medical and health care professionals to fully play their role as the backbone of the reform, according to a statement released late Friday.China launched its massive health care reform last year, which seeks to provide adequate and affordable health care services to all. The State Council, or Cabinet, issued a circular in April detailing specific goals and steps for future reform.Li said more investment and human resources are needed to support health care service providers at grass-roots level to improve the service, a key task and challenge in the reform.

BEIJING, Aug. 8 (Xinhua) -- The Official Report for the Beijing Olympic Games and the Paralympics was unveiled here on Sunday in a bid to provide valuable experience and lessons for futures hosts.The launching of the Report, detailing the planning, organisation and celebration of the two Games, coincided with the second anniversary of the Beijing Olympic Games which opened on Aug. 8 two years ago.The Beijing Olympics official report comprises four volumes telling stories and experiences in the bidding process, the organization and operation, the Games ceremonies and summaries as well as the official competition results.

ASHGABAD, June 17 (Xinhua) -- He Guoqiang, member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, arrived here Thursday to start an official and good-will visit to Turkmenistan.In a written statement upon his arrival, He Guoqiang said Sino-Turkmen relations were time-tested, and the countries' political trust and economic and trade cooperation has been strengthened since they forged diplomatic ties 18 years ago.The two countries have supported each other in international organizations on issues concerning each other's core interests, he said.He Guoqiang, also secretary of the CPC's Central Commission for Discipline Inspection, had a transit visit to Azerbaijan before arriving in Ashgabad.During his stay in Baku, capital of Azerbaijan, He Guoqiang met with Prime Minister Artur Rasizade on Wednesday.He Guoqiang said he was visiting for friendship and cooperation, and China valued its relationship with Azerbaijan, respected the way of development that Azerbaijan has chosen according to its own situation. He appreciated Azerbaijan's adherence to the one-China policy.