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SINGAPORE: China and the United States plan to set up a defense hotline aimed at improving military relations, a top Chinese general said over the weekend. Zhang Qinsheng, deputy chief of the general staff of the People's Liberation Army, made the remarks at the plenary session of a three-day security summit known as the Shangri-La Dialogue. He said the issue of the hotline between the Chinese military and the US Defense Department would be settled when he visits the United States in September for the ninth Sino-US defense talks. Zhang also told the summit that China's defense budget is authentic. As the Chinese military gradually modernizes, some have raised questions over "military transparency", and voiced suspicions on China's defense budget. So it is necessary to clarify the matter, Zhang said. "In China, defense budgeting must follow a set of strict legal procedures, and the published budget is true and authentic," he said. He added that the increased proportion of the defense budget is mostly used to make up for inflation, improve the welfare of military personnel and logistics support. "Given the multiple security threats, the geo-political environment, the size of the territory, and per-capita expense, the Chinese defense expenditure is small by any yardstick," he added. He stressed that "China is gradually making progress in military transparency following the principles of trust, responsibility, security and equality". The annual Shangri-La Dialogue, named after the Singapore hotel at which the event has been held since its launch in 2002, and organized by the London-based International Institute for Strategic Studies, opened on Friday. It gathered defense ministers and top officials from 26 countries and regions in the Asia-Pacific region and Europe to address major regional security issues and defense cooperation. Also at the meeting, the US and China turned down the heat on a dispute over Beijing's military build-up, with US Defence Secretary Robert Gates expressing optimism about future relations. Gates downplayed past US rhetoric on China's military might. "As we gain experience in dealing with each other, relationships can be forged that will build trust over time," Gates said. China Daily - Agencies

NANJING: Jiangsu province will constantly focus on environmental protection while maintaining strong momentum in economic development in the next five years, acting governor Luo Zhijun said in his work report to the first session of the 11th provincial people's congress on Friday.The province witnessed fast economic growth in the past five years with gross domestic product (GDP) increasing at an annual average rate of 14.5 percent, one of the highest rates in the country, official figures showed.However, such economic development has had a negative impact on the environment, Luo said.Workers try to clean a major moat of algae in Suzhou, Jiangsu province, last July. A massive algae bloom spread out last summer in several of the country's large lakes, including Taihu lake in Jiangsu and Dianchi lake in Yunnan province. [China Daily] Last May, more than 1 million residents in the city of Wuxi suffered water shortages when a large-scale, blue-green algae outbreak hit Lake Taihu, one of the city's main sources of drinking water.The algae comprise microscopic organisms that are naturally present in waters. They grow easily in polluted waters and can starve the water of oxygen, killing aquatic life.The water quality of the lake has improved, but the incident was seen to have sent a signal to local government that the economy should not grow at the expense of the environment."We've learned a lesson from the incident, that environmental protection should take precedence over GDP growth," said Mao Xiaoping, mayor of Wuxi and deputy to the provincial congress.The provincial government will allocate more than 2 billion yuan (7 million) to clean up Taihu lake this year, Luo said in his report.Over the past five years, the provincial government has made strenuous efforts to protect the environment while speeding up economic development, Luo saidAll over the province, 2,713 small chemical factories, one of the main sources of pollution, have been ordered to close, while many other heavy polluting enterprises have been urged to upgrade their environmental protection facilities to be up to standards, Luo said.Similarly, 75 sewage treatment plants have been built in the cities with a daily disposal capacity of 3.78 million tons of wastewater, he said."We will continue to encourage technology renovation and push forward industrial restructuring in the next five years," said Luo.The authorities will also support research of technologies to improve water and air quality, Luo said.At the same time, the province will promote the use of energy-saving devices and recycling, he said.Measures are being taken to ensure that no new projects will be approved before they meet all requirements for environmental protection, Luo added.To that effect, the metallurgy, chemical, building materials, electrical power and textile industries will all be under close supervision, he said.

International community should work together to support a "fast and smooth" implementation of the newly-announced agreement on sending hybrid peacekeeping troop to Sudan's Darfur region, China's special representative for Darfur Liu Guijin said on Friday. Meanwhile, political process with all parties involved should continue in order to help restore a lasting peace in that troubled area, he said after discussions with South African Deputy Foreign Minister Aziz Pahad and other foreign ministry officials in the South African capital on Friday. South Africa is part of Liu's trip to Africa for consultations after the Sudanese government on Tuesday accepted the deployment of a hybrid African Union-United Nations force of between 17,000 to 19,000 troops in Darfur. Liu said both Chinese and South African governments welcomed the decision, which was announced after a closed-door meeting of the UN, AU and the Sudanese government in Adis Ababa, Ethiopia, early this week. "China and South Africa hold similar view with regard to the Darfur issue... We need to give encouragement to the flexible attitude demonstrated in the recent meeting in Addis Ababa," Liu told a media briefing. The newly-appointed Chinese envoy, who made a fact-finding trip to Darfur last month, said this was achieved thanks to efforts of the international community. "Now the Sudanese government has responded positively," he said. The deployment of the hybrid peacekeeping troop is the final part of a three-phase support plan, also known as the Annan plan as it was put forward by former UN secretary-general Kofi Annan, with aims to end armed conflicts in Darfur. The AU, the UN and the Sudanese government agreed last November on the plan. With the first phase of the plan already underway, Sudan announced on April 16 that it approved the inauguration of the second phase, which involves the deployment of 3,000 UN troops and six attack helicopters in Darfur to support the 7,800-strong African force, as well as preparation for the next phase. The Sudanese government has been accused by the United States of delaying the deployment of the hybrid force. But Khartoum strongly requested that the joint force must be predominantly African one. Liu said the international community should now concentrate on how to support the deployment of the hybrid peacekeeping troop. He said China, as a permanent member of the UN Security Council, has been closely cooperating with the UN, AU and the Sudanese government on the Darfur issue, including the commitment to send 275 engineering troops to Darfur to support the second phase of the Annan plan, as well as 10 million U.S. dollars and other humanitarian support to Darfur. "We have been playing a role of bridge... We have been trying to give advice and to persuade Sudan to be more flexible to accept the UN plan," he said. Liu said he would also hold consultations with the AU Commission Chairman Alpha Oumar Konare in Addis Ababa, with officials of the Arab League during his visit to Egypt, and make another visit to Sudan. Liu said China opposed the move to put sanctions, which the United States threatened to use on Khartoum. "We do not need to rush to put more sanctions," he said. "It's not a proper time now. Peace has a future. We need to work together, make efforts and help with the newly deployed AU-UN hybrid operation." The Chinese diplomat also shrugged off the accusation on China' s failure to exert pressures on Khartoum, allegedly due to China's oil interest in Sudan. "Pressure cannot solve anything," he said. "No matter how many troops you send, without a political presence and cooperation of the government, we cannot find a long-lasting solution." "I think up to now we have been quite successful," he said. He said China's normal ties with Sudan have been "unnecessarily politicalized," which were "unfair and irrational." He said China will continue to be actively involved in projects, such as water-supply and establishing agriculture technology demonstration centers in Sudan, to help Sudan realize social and economic development, which "we regard as the root cause of the armed conflicts and humanitarian crisis."

GENEVA -- China has reached understanding with the United States and Mexico on their alleged trade subsidy measures, sparing a WTO panel ruling on the case, the Chinese WTO mission said here on Thursday.Chinese Ambassador Sun Zhenyu signed respective memorandums of understanding with his US and Mexican counterparts "regarding certain measures granting refunds, reductions or exemptions from taxes or other payments" at the WTO headquarters on Thursday, the mission said in a statement.In the MOUs, China made it clear to the United States and Mexico that "the policy of exemption for certain foreign-invested enterprises from payments to the State for worker allowances is no longer operative."Besides, the policy of value-added tax (VAT) refund to enterprises for the purchase of domestically produced equipment does not constitute prohibited subsidies as provided by relevant provisions of WTO agreements."Other preferential policies on income tax pertinent to the disputes have been repealed or will be repealed along with the implementation of the new Enterprise Income Tax Law of China," the statement added.According to the Chinese mission, the MOUs will be notified to the WTO as mutually acceptable solutions to the above-mentioned dispute in accordance with the Dispute Settlement Understanding of the world trade body.The United States filed the case to the WTO in February and later was joined by Mexico. The two countries alleged that China was using tax breaks and other incentives to "subsidize" its exports, which might violate WTO regulations.A WTO panel was established in August to investigate the case, following failed consultations between the three sides.But the three sides finally reached understanding on the dispute through continued discussions.

The website of the National Bureau of Corruption Prevention (NBCP) crashed on Tuesday, just hours after its launch, as droves of people logged on to complain about corruption among officials.The website (yfj.mos.gov.cn) was closed for most of the afternoon, Beijing Youth Daily reported.An NBCP official, who did not want to be named, confirmed the breakdown had occurred."Repairs were carried out soon after the website broke down and normal service has now been resumed, he told the Xinhua News Agency."The number of visitors was very large and beyond our expectations," he said.As of 4 pm yesterday, visitors had left 22 pages of messages in the website's guest book.While many of them referred to report specific cases of official corruption, these were redirected by the webmaster to other sites, such as that of the Ministry of Supervision.Other visitors made calls for the strengthening of the government's anti-corruption efforts, and comments about the need for special attention to be given to cases involving institutes of higher education and grassroots governments."The corruption problem in China is a fatal illness. Establishing more institutions will not solve the problem," one comment read.The enthusiasm that greeted the launch of the website reflects the growing frustration felt by the public toward corruption at government level, which has been accentuated by several high-profile cases in recent years.Several senior officials, including Qiu Xiaohua, the former director of the National Bureau of Statistics; Zheng Xiaoyu, the former head of the food and drug administration; and Chen Liangyu, the former Party head of Shanghai, have been found guilty of serious corruption.Last year, more than 90,000 officials were disciplined, according to official figures.The NBCP was set up on September 13, with Ma Wen, the Minister of Supervision, as its head.The bureau has been entrusted to collect and analyze information from the banking, land use, medicine and telecommunications sectors, among others, and to share it with prosecuting organs, courts and the police.It is not, however, involved in the investigation of individual cases.