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The Chinese government on Tuesday expressed indignation and opposition to the resumption of "diplomatic relations" between St. Lucia and Taiwan. Foreign Ministry spokesman Liu Jianchao said in a statement that the resumption of "diplomatic relations" between St. Lucia and Taiwan was a flagrant violation of the declaration on the establishment of diplomatic relations between China and St. Lucia. It also constituted interference in the internal affairs of China, Liu said. He said the embassy of China in St. Lucia had already lodged a strong protest to the government of St. Lucia. He said the government had instructed the embassy to request the St. Lucian government live up to the principle of the declaration that the two countries issued on the establishment of diplomatic links in 1997. It also instructed the embassy to request St. Lucia return to the rightful stance of recognizing one-China. "Otherwise, the government of St. Lucia will be responsible for the consequences incurred," Liu said. Liu said the Taiwan authority's attempts to pursue "money diplomacy" and create "two Chinas" or "one China, one Taiwan" had no support in the international community and would not succeed.

Visiting US Chief of Naval Operations Mike Mullen reaffirmed in Beijing on Tuesday that the United States will not support Taiwan independence and will adhere to the one-China policy."The United States will not support Taiwan independence or any unilateral move toward that direction on the part of Taiwan," Mullen told reporters at a press conference.As a guest of Chinese People's Liberation Army Navy commander Wu Shengli, Mullen arrived in China on August 17 for a friendly visit. He delivered a speech at a Chinese naval academy and observed naval exercises from on board a Chinese warship.During the visit, Mullen also met with Chinese Defense Minister Cao Gangchuan and Guo Boxiong, vice chairmen of China's Central Military Commission.China-US relations are one of the most important bilateral relations in the world, Cao told Mullen, noting that flourishing bilateral ties will not only serve the fundamental interests of the two countries and two peoples, but will also be conducive to the peace, stability and prosperity of the region and world as well.Agreeing with Cao's view on bilateral relations, Mullen said that US-China relations are very important and the dialogue between the two nations as well as the two militaries is "critical".Mullen, who has been nominated by US President George W. Bush to become the next chairman of the Joint Chiefs of Staff, promised to Cao that he would continue to nurture the bilateral ties no matter whether he serves in his current position or as Bush's major military adviser and leader of the US Army, Navy, Air Force and Marines, according to a press release provided by the Chinese Ministry of Defense.Mullen also expressed his hope that exchanges and cooperation in such fields as military academic education and exchange visits of warships, could be further boosted in an effort to increase mutual understanding and trust, said the press release.

BEIJING -- The Industrial and Commercial Bank of China (ICBC) has planned to open a subsidiary in the United States, as part of its going-global strategy which also involves Russia, Indonesia and the Middle East, Board Chairman Jiang Jianqing said here on Wednesday."Preparations have been going on smoothly. We hope to receive approval from American authorities as early as possible," said Jiang, a delegate to the ongoing 17th National Congress of the Communist Party of China, at a news briefing.Jiang said that next month the ICBC would open a branch in Russia and take over the Bank Halim in Indonesia. Applications to set up new branches in Dubai and Doha have been approved by the banking authorities of China, paving the way for its march into the emerging Middle East market.In its latest overseas expansion, the ICBC clinched an agreement with Seng Heng Bank Limited on August 29 to acquire a stake of nearly 80 percent of the bank in Macao for 4.683 billion patacas (US5 million), according to the bank's website.Jiang said that the ICBC would "cautiously" advance its going- global strategy. "Only when the price, opportunity and place are right will we make a move."The bank has established more than 100 branches so far in 13 countries and regions, mainly through greenfield investment, merger and acquisition. But overseas business only contributed three percent of its total assets and four percent of its profits. The ICBC hopes to raise the proportion to 10 percent in the future, Jiang said.Domestically, the ICBC has more than 16,800 outlets.With a total asset of over US0 billion, the ICBC has been named as the second largest bank of Asia and the most profitable bank with a net profit of over US billion, according to a listing of HK Asia Week of "Top 300 Asia Bank".Apart from expanding its global presence, the bank has been engaged in financial innovations at home. In September, China's banking regulator approved the bank to set up a leading company with a registered capital of 2 billion yuan (US5.96 million), the largest of its kind in the Binhai New Area of Tianjin, which will help improve the bank's performance by shifting its profits from interest income to intermediary services.Jiang said the bank's non-performing ratio would be hopefully kept under three percent this year, much lower than the industry's average of eight percent. Bad loan ratio in term of real estate property stood at 1.4 percent in the first half. 

Investors monitor the movement of stock prices at a brokerage firm in Guangzhou, South China's Guangdong Province May 9, 2007. [newsphoto]China's main stock index hit a fresh all-time high after breaking a key barrier of 4,000 points due to the soaring blue chip stocks as investors shrugged off official warnings of a possible market bubble amid soaring corporate profits. The benchmark Shanghai Composite Index, the most widely watched indicator of the mainland's stock market, gained 1.60 percent to end at 4,013.08 points, breaching the psychologically important mark of 4,000 for the first time. That marks a gain of 50 percent so far this year on top of a 130 percent rally in 2006. Blue chip stocks showed strong performances. China Unicom, the nation's second largest wireless operator, jumped its daily limit of 10 percent to close at 6.35 yuan per share. Bank of China rose 7.77 percent to 6.10 yuan, while Industrial and Commercial Bank of China was up 5.47 percent to 5.78 yuan. The surge came after the Shanghai Composite Index was pushed to a new high in the previous session as new investor cash flooded in after the week-long May Day market recess and China's yuan broke the barrier of 7.70 against the US dollar. The consistent hitting of new highs since January was partly driven by the wave of money brought in by new investors. Some 4.787 million new A-share trading accounts were opened in April, more than the combined number of the previous two years, statistics from China Securities Depository and Clearing Corporation. The figures for the new accounts are considered a rough indicator for the number of new individual investors entering the market. Analysts said the market may undergo drastic fluctation after the index breaks the 4,000 point mark, as worries about stock overvaluations build up. The stocks in the Shanghai and Shenzhen markets are trading at more than 40 times  earnings per share on average, much higher than developed markets overseas. The growing bubble in the country's stock market is a concern, said central bank governor Zhou Xiaochuan last week, adding he would closely monitor asset prices, the consumer price index and producer price index. Zhou's remarks added to speculation there could be an interest rate hike as early as next month. Xie Guozhong, former chief China economist for Morgan Stanley, suggested regulators should come up with certain policies to put the brakes on the surging stock market for the good of long-term economic development and social stability. "China's equity market is starting to show signs of getting out of control," said Zuo Xiaolei, chief economist of China Galaxy Securities in China Securities Journal on Wednesday The market rose even after the interest rate was hiked in March, and the bank reserve ratio was raised in April, said Zuo. "The neglect of policy and blindly pushing up the equity market fosters a big market risk," he claimed.

BEIJING - The People's Bank of China (PBOC), the central bank, on Thursday asked its local offices to ensure cash supplies amid persistent snow to meet demand for the Spring Festival, which falls on February 7.Snow has disrupted transportation, making it hard to deliver cash to the branches.The central bank, in a circular, urged its local offices to help commercial banks in getting or storing cash.The heavy snow that has fallen since mid-January, the worst in 50 years in much of China, has paralyzed transportation, frozen the power grid and caused serious economic losses.It showed no signs of abating as forecasters warned of three more days of snow and sleet.

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