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The four-day Beijing air quality exercise held earlier in the month was met with mixed reaction.Diverse opinions were expressed by private car owners and public transport users.During the four days, cars bearing odd and even license plates were allowed on the roads on alternate days to see what effect this would have on the reduction of air pollution.According to a survey by Beijing Youth Daily, 61.9 percent of car owners opposed the practice in a long run while 78.2 percent of public transport users lauded it. The survey covered 3,000 residents.On the positive side, the exercise between August 17 and 20, showed a reduction in haze and smoother traffic flow.On the negative side, it has sparked further debate on the number of vehicles in the capital. About 1,000 new cars are registered every day in the city.Car owners argued that smoother traffic comes at the expense of individuals' convenience."Does being a car owner mean you have limited rights? That would be cruel and inhuman," Wang Hongsheng, head of the Volkswagen Polo club in Beijing, said.Fifty-seven percent of car owners shared his opinion.Among non-drivers, 21.9 percent did not think the even-odd plate exercise was a reasonable, scientific way to gauge air quality."It is an arbitrary way of stripping car owners of their rights. They pay for the convenience," a respondent said.Apart from the purchase price, the cost of owning a car in Beijing ranges from 10,000 yuan to 30,000 yuan (,300 to ,900) a year, he said.The survey also showed 36 percent of car owners were in favor of "public transport if managed well"."People are fed up with the poor condition of buses, and the metro where people are packed like sardines," another said.On options to improve traffic conditions, 49.9 percent said efficiency and lowering public transport fares should top the government's agenda instead of restricting car-ownership.Twenty-six percent of respondents said more roads and bridges should be built to reduce congestion, 14.5 percent were in favor of more flexible parking fees in relation to localities, and 9.5 percent said the use of bicycles, and walking should be promoted.

Chairman of the US Joint Chiefs of Staff Marine Gen. Peter Pace inspects the guard of honor during a welcome ceremony at the Defence Ministry in Beijing March 22, 2007. [Reuters]"Clearly, both the United States and China have enormous military capacity, but equally clearly neither country has the intent to go to war with the other. So absent of intent, I don't find threat," General Peter Pace, chairman of the Joint Chiefs of Staff said. "We should not focus on how to fight each other but how to prevent military action. That is what my government is focused on, and that is what my Chinese counterparts here have said their government is focused on." Pace arrived in Beijing Thursday for a four-visit which as he said is aimed at boosting military ties Pace said he had discussed the sensitive topic of Taiwan with the Vice Chairman of the Central Military Commission, Guo Boxiong, Defence Minister Cao Gangchuan and Foreign Minister Li Zhaoxing. "It is not surprising that in each of the meetings, the issue of Taiwan came up. It is clearly a fundamental issue with China," he said. Asked about the possibility of a conflict over Taiwan, he said: "I believe there are good faith efforts among all the leadership to prevent that." Pace said he had repeated US President George W. Bush's position that the US leader "would not support Taiwan independence" and that Washington wanted the issue to be handled peacefully. Pace's visit follows a US announcement last month that it plans to provide over 400 missiles to Taiwan.China's military is proposing officer exchanges and other confidence-building measures with the US Army and may be inching closer to setting up a "hotline" for emergency communication with Washington, according to Pace. Pace said he immediately agreed to study the proposals put forward Friday by Gen. Liang Guanglie, chief of the PLA's General Staff Department. "To me this was a very good, open discussion and one that I found very encouraging," Pace told reporters in Beijing. Liang's proposals included sending Chinese cadets to the Army academy at West Point as well as participating in joint exercises and humanitarian and relief-at-sea operations "that might be able to build trust and confidence amongst our forces." Military exchanges were largely suspended following a collision between a US spy plane and a Chinese jet fighter over the South China Sea in 2001.  Pace said the sides agreed to keep discussing setting up a "hotline" between either military or civilian leaders that would help ease any future friction. "The Chinese military understands as well as I do that the opportunity to pick up the phone and talk to somebody you know and smooth out misunderstandings quickly is a very important part of relations between two countries," Pace said.

Almost 85 percent of Chinese people share just 100 surnames, with Wang, which literally means "king", being the most popular, the Xinhua news agency said on Tuesday. There are 93 million Wangs in China, followed closely by 92 million people with the family name Li and 88 million called Zhang, Xinhua said, citing newly-announced calculations by the Ministry of Public Security. Another seven common names -- including Chen, Zhou and Lin -- have at last 20 million members each, it added. Chinese family names can be traced back thousands of years and people generally feel a closeness to those with the same surname. But there are also some family names which are only used by a very few people, such as Guo, meaning to "cross over", and Mu, which means "mother".

China is tightening its grip once more on foreign investors in Chinese real estate, banning them from borrowing offshore in the latest effort to tame property prices and cool the economy. The new rule, set out in a circular from the State Administration of Foreign Exchange , could squeeze foreign investors who take advantage of lower interest rates outside China. Some may find it especially difficult to fund projects as Beijing has told its banks to cut back on loans for the construction industry. The central bank ordered Chinese banks to stop lending for land purchases as far back as 2003. "The only alternative is to fund the entire equity," said Andrew McGinty, a partner at the law firm Lovells in Shanghai. "But that's not a very favoured method, because your internal return on investment goes down dramatically." Property funds operating in China tend to borrow to fund at least 50 percent of a project's value. The circular, which the currency regulator sent to its local branches in early July but has not yet published on its Web site, also increases red-tape for foreign property investors. Investors seeking to bring capital into China to set up a real estate company must now lodge documents with the Ministry of Commerce in Beijing -- not just with local branches of the ministry, according to the new circular with de facto effect from June 1. That process could take a month or more, said an official at the Ministry of Commerce, declining to be identified. "What we mean is very clear: First we are targeting foreign real estate firms that are illegally approved by local governments," a SAFE official said. McGinty said the new rule would reduce foreign investment in the real estate sector, but the real impact would depend on how it is enforced. UNCERTAIN IMPACT China has applied a raft of measures to rein in property investment, including interest rate rises and rules to discourage construction of luxury homes. Some steps have specifically targeted foreign investors, who account for less than 5 percent of total investment in the property sector. Foreign investors must now secure land purchases before setting up joint ventures or wholly owned foreign enterprises in China. However, funds such as those run by ING Real Estate, Morgan Stanley , Hong Kong's Sun Hung Kai Properties , Henderson Land Development and Singapore's CapitaLand Ltd. are pouring more money than ever into China to tap a middle class hunger for new homes and rising capital values. China's urban property inflation rose to 7.1 percent in June, compared with a year earlier, from 6.4 percent in May. McGinty said some foreign investors may eventually quit China for more interesting markets if an inability to employ leverage reduces their internal rate of return. However, others said they would stay on. "We are not too worried about it. Cooling measures won't stay forever," said Robert Lie, Asia chief executive for ING Real Estate, which has raised a 0 million fund to build housing in China. ING Real Estate borrows locally, partly to hedge its currency risk. Most other foreign investors in China do the same. Some foreign property firms that have been in China for many years have strong connections with local lenders -- Chinese banks as well as international banks incorporated in China. "There is still strong interest in China, although there will be some form of slowdown in the number of transactions," said Grey Hyland, head of investment at Jones Lang LaSalle in Shanghai. He said the new approval rules would further dampen the ability of foreigners to compete with local rivals. "It's still early to say how, because these rules are still very new and being tested," Hyland said. One consequence, he added, could be to drive foreign property investors inland to second- and third-tier cities that the authorities are eager to develop and where approval is therefore easier to obtain.

China, with a record .2 trillion of foreign-exchange reserves, will keep the "bulk" of its US dollar holdings because the currency is one of safest investment options, a People's Bank of China assistant governor said. The dollar remains "important" because trade and foreign direct investment is conducted mostly in the currency, Yi Gang told delegates at a meeting that was closed to the media at the World Economic Forum in Singapore. Asian central banks will continue to hold most of their reserves in dollars, he said. "Safety, return and liquidity are the three most important elements that people should consider when they talk about reserves," Yi said in a recording of the discussion that was obtained by Bloomberg News. "As far as we're concerned, the serious reduction of the dollar reserve is a small probability," he said, adding that any adjustments to its dollar holdings will be "incremental." China's gross domestic product expanded 11.1 percent in the first quarter, making it the world's fastest-growing major economy, led by sustained demand for its exports to the US and other trading partners. Diversification of the nation's foreign-exchange reserves will be gradual and won't hurt the dollar or financial markets, Market News International said last month, citing Ding Zhijie, one of five advisers to the reserves agency's committee. 'Gradual Process' China's trade surplus, which the Asian Development Bank estimated will climb by 45 percent to a record 7 billion next year, has sparked calls for further gains in China's yuan. Some US lawmakers have said that the yuan was undervalued by 40 percent to make China's exports cheap and pledged trade sanctions as punishment. The central bank expects the yuan exchange rate will gradually move toward a "market-oriented direction," Yi told reporters after the meeting Monday. The currency has risen about 8.6 percent since the dollar link was abandoned in July 2005. "The central bank of China has the responsibility to keep the exchange rate at more or less a stable level," Yi said. "The mechanism is more toward a market-oriented direction."