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BEIJING, Jan. 10 (Xinhua) -- China and the United States agreed to avoid misunderstanding in developing military ties amid U.S. Defense Secretary Robert Gates' visit to Beijing to restore impaired high-level military exchanges.In their official talks on Monday, Chinese Defense Minister Liang Guanglie and Gates reached consensus on joint efforts to expand common interests, deepen dialogue and exchanges, and avoid misunderstanding and miscalculation to ensure military ties back on the sound track.They pledged to keep open the channel for exchange mechanism like defense and maritime security consultations between the two militaries."There are many areas where we have mutual interests and can work together, those disagreements are best dealt with through dialogue and discussions with one another," said Gates.Chinese Defense Minister Liang Guanglie (R) shakes hands with the visiting U.S. Secretary of Defense Robert Gates at a welcome ceremony in Beijing, capital of China, Jan. 10, 2011. His visit, which came ahead of Chinese President Hu Jintao's state visit to United States later this month, was one of the scheduled high-level contacts that were postponed after the Pentagon decided to sell a nearly 6.4-billion-U.S.-dollar arms package to Taiwan in January of 2010.While reaching agreements on developing resumed military exchanges, the Chinese defense chief warned that U.S. arms sale to Taiwan "jeopardizes China's core interests.""We do not want to see such things happen again. We do not want U.S. weapon sales to Taiwan to further damage the relationship between China and the United States and the two nations' armed forces," Liang told a press briefing.On a question on the development of China's military power, Liang rejected claims that China's military development is a threat, saying its weapons still lag far behind developed countries."China's military hardware development is to meet its sovereignty and security requirements and targets no other countries and poses no threat to others," said Liang.Chinese Vice President Xi Jinping, while meeting with Gates later on Monday, stressed "reliable political basis" for Sino-U.S. military ties, which have gone through ups and downs in the past years.Xi, also vice chairman of China's Central Military Commission, urged the two militaries to take measures to safeguard the "stable and reliable" political foundation, that is, mutual respect for sovereignty, security and development interests."China-U.S. military relationship, as an important part of bilateral ties, is a sensitive field with more complicated factors," said Xi, hoping military-to-military relations could move forward in a healthy and stable manner.Another Vice chairman of China's Central Military Commission Xu Caihou made a three-point proposal on developing China-U.S. military ties, in his meeting with Gates.Xu called on to respect and accommodate each other's core interest and major concern, to cultivate and increase strategic trust between the two armed forces, and to consolidate and expand common interests for both sides.Calling U.S.-China relations the "most important" bilateral ties in the world, Gates told Xu that his visit achieved "important progress" in building stable military ties between both countries.Gates said his country was expecting President Hu's state visit. Hu is due to meet with Gates on Tuesday."China-U.S. military exchanges plays an irreplaceable role in solving deeper differences between the two countries," said Zhu Feng, an researcher on China-U.S. relations with Peking University.He said the military contacts would greatly help to beef up strategic trust between China and the United States, and also influence public opinion.Gates will visit the command of the Second Artillery Force of the PLA on Wednesday. This is his second China trip since he took office in December 2006.

CHANGSHA, Dec. 19 (Xinhua) -- The death toll in a fireworks blast in central China' s Hunan Province rose from an earlier announced nine to 12 after DNA tests results were completed , local authorities said Sunday night.Another two people were believed to be missing, police said, adding that three of the 12 victims were still to be identified.The blast, which also injured nine others, occurred in Ningxiang County of Changsha, the provincial capital, at about 9:30 p.m. Friday when a truck loaded with fireworks fuses hit a power pole and sparks from fallen cables ignited the fuses.The blast destroyed the truck and nearby houses, shattering windows and cracking walls hundreds of meters away.Rescue work and clean-up at the site ended on Sunday, a local government spokesman said.The nine injured, who are being treated in hospital, are in stable conditions, according to the spokesman.However, the whereabouts of the truck driver remains unknown.Police continue investigating the accident.

BEIJING, Dec. 29 (Xinhua) -- China's gross domestic product (GDP) is predicted to grow by around 9.5 percent in 2011, 0.5 percentage points lower compared to the growth rate expected for this year, said a report issued Wednesday by the Bank of China (BOC).The report by the BOC, China's third largest lender, was based on the bank's projections of weak overseas demand, tighter monetary policy, and the government's planned economic restructuring for 2011, the first year of China's 12th five-year plan.The Chinese government announced in early December that it will switch its monetary policy stance from relatively loose to prudent next year to tackle rising inflation and keep economic growth at a sustainable pace.The report also said government policies this year to curb soaring property prices in some major cities, and the country's efforts to improve energy efficiency had slowed the economy with the GDP dropping to 9.6 percent in the third quarter, down from the second quarter's 10.3 percent and 11.9 percent in the first quarter.The report also forecast inflation to rise 4 percent in 2011, compared to the 3.3-percent rise expected for 2010. It said that in the second half of the year, the producer price index (PPI) for China's industrial products had kept rising along with the consumer price index (CPI), adding more inflationary pressure for the future.The Chinese government set a 3-percent target for inflation this year, but looks unachieveable after the index rose 3.2 percent during the first 11 months. Pushed up mainly by rising food prices, the index soared 5.1 percent in November to a 28-month high.The report also predicted new lending next year would be 7 trillion yuan (1.06 trillion U.S. dollars), just slightly down from the 7.5 trillion yuan target set by the government for 2010.Growth rates of retail sales of consumer goods and industrial value-added output would see a slight drop from year 2010, while imports would likely grow by 18 percent, 3 percentage points higher than exports.As inflation triggers wider public concerns, expectations for more hikes in interest rates are strengthening. The report forecast the People's Bank of China, the central bank, would likely hike rates for up to three times next year, mostly during the first half of the year.The central bank on Sunday raised the benchmark one-year lending and deposit rates by 25 basis points for the second time in just over two months. It had also set higher commercial lenders' reserve requirement ratio six times this year in a move to tighten liquidity amid climbing inflation.

HONG KONG, Dec. 4 (Xinhua) -- Hong Kong Chief Executive Donald Tsang said on Saturday the government will not slack off in its fight against drugs, despite a 20 percent drop in the number of drug abusers aged below 21 in the first half of this year.Speaking at the 2010 Fight Crime Conference, Tsang said both the government and the community attach great importance to drug problems.Although the government's efforts in beating drugs have started to deliver results, it will not slack off and will continue to allocate money to anti-drug programs, he said.Praising law-enforcement officers' professionalism in maintaining law and order in Hong Kong, Tsang said the city's crime rate continued to stay at a low level.According to Chief Secretary Henry Tang, Hong Kong's crime situation for the year's first 10 months remained stable, with overall crime dropping 3.2 percent.

BEIJING, Dec. 25 (Xinhua) - A robust domestic market, an increasingly competitive technological edge, a vibrant economic structure and a stable society will continue to provide strong support for China's growth in the next five years, a senior official said on Saturday.In the next five years, China will proceed with the development of its industrialization, information, urbanization and market economy while the global environment will be generally favorable to China's peaceful development, said Zhu Zhixin, vice director of the National Development and Reform commission, or China's top economic planning body.However, China is still challenged by problems in pursuing a balanced, coordinated and sustainable development, he said at a lecture attended by members of the Standing Committee of the National People's Congress (NPC), or the top legislature.The lecture, which was held in the Great Hall of the People, was presided over by Wu Bangguo, Chairman of the NPC Standing Committee.