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BEIJING, July 12 (Xinhua) -- Chinese Foreign Minister Yang Jiechi held official talks with his Icelandic counterpart Ossur Skarphedinsson here on Monday, vowing to further expand mutual understanding and push forward bilateral ties up to a new stage.Calling the two countries good friends and partners, Yang said China and Iceland enjoy solid foundation of trust though they had different national conditions. Both sides had fruitful cooperation in the areas such as trade, fishery and culture, and kept sound contacts and coordination in global and regional affairs."China is ready to take the chance of the 40th anniversary of the establishment of diplomatic ties next year to further enhance understanding and cooperation with Iceland," Yang said. Chinese Foreign Minister Yang Jiechi (R) shakes hands with Icelandic Foreign Minister Ossur Skarphedinsson in Beijing, capital of China, July 12, 2010.Skarphedinsson reiterated his country's adherence to the one-China policy, adding Iceland is committed to strengthening bilateral pragmatic cooperation in various areas.Hailing the smooth growth of bilateral ties, he extended appreciation for China's support for his country when it was severely hit by the global financial crisis these years.

MELBOURNE, Australia, June 19 (Xinhua) -- Visiting Chinese Vice President Xi Jinping met with John Brumby, Premier of Victoria state later Saturday.Xi Jinping, who is visiting Australia at the invitation of Prime Minister Kevin Rudd, said his visit aims to enhance mutual trust and friendship, promote extensive exchanges and cooperation and he is to meet Australian leaders and friends of different sectors during the visit.Xi said exchanges and cooperation at state and province level are important to bilateral relations. In recent years, friendly cooperation between Victoria state and China has achieved positive results, especially in trade and education sectors.(Xinhua/Liu Weibing) (ypf)" hspace="0" src="/d/file/p/2010/06/e99cfd599976853f5e524c867d176e88.jpg" border="0" />Chinese Vice President Xi Jinping (R) meets with Australia's Victorian Premier John Brumby in Melbourne, Australia, June 19, 2010. Xi arrived at Melbourne on Saturday afternoon, starting his official visit to Australia, the last leg of his four-nation visitsXi said the Chinese government and relevant provinces and cities in China attach great importance to further exchange and cooperation with the state of Victoria.He said joint efforts can be made in technological cooperation, especially the high technology sector, research and manufacturing of clean energy automobiles. The two sides can make the most of their high level of complementary properties of trade and investment relations and at the same time deepen cooperation in agriculture.People-to-people relations are also important, Xi said, adding that the two sides need to further encourage education and travel by having more university-level exchanges, training, visiting scholar programs, technological and educational cooperation.Xi said this year's Shanghai World Expo, the year of Australian culture in Beijing as well as next year's China year in Australia are providing opportunities for more people-to-people exchanges and links. He said with joint efforts, friendly cooperation between Victoria and China will provide genuine benefits to the peoples.Premier Brumby gave Vice President Xi a warm welcome for making Melbourne the first leg of his visit to Australia. Brumby said, given cooperation in extensive areas, relations between Australia and China enjoy a strong trend. The existing cooperation in energy, resources, mineral, culture, education and travel has been very fruitful.

BEIJING, Aug. 22 (Xinhua) -- China's consumer price index (CPI), one of the main gauges of inflation, will peak in August before starting to fall in the following months of the year, an economist said Sunday."The CPI is likely to surpass 3.3 percent in August but that will be the highest level for the year," said Lian Ping, chief economist at Shanghai-based Bank of Communications.He said commodity prices will remain relatively low in the short term as market concern about a weak economic recovery linger and as the European debt crisis spreads.Chinese inflation will also ease due to China's slower economic growth rates and a fall in the price of industrial goods, Lian added.However, long-term inflationary pressures cannot be ruled out, due to potential rises in the cost of food, labor and natural resources, he said.Lian said he expects inflationary pressures to grow in March and April next year.Largely on the back of rising food prices after widespread flooding wrecked crops and disrupted shipping, China's July CPI rose 3.3 percent from a year earlier, the fastest rate since October 2008.The CPI for the first seven months of the year stood at 2.7 percent, below the whole-year target of 3 percent.

GUANGZHOU, Aug. 4 (Xinhua) -- Five fishermen are missing after their fishing boat collided with an unknown vessel that then fled off the coast of south China's Guangdong Province early on Wednesday, local authorities said.The wooden fishing boat sank after colliding with the unknown vessel along the coast of Lufeng City in the early morning. Seven fishermen aboard the boat fell into the water, and two were subsequently saved by rescuers, the Lufeng Municipal Emergency Affairs Office said in a statement.The unknown vessel fled the scene following the collision, it said.Local maritime authorities are searching the area for both the five missing people and the runaway vessel, it added.