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BEIJING,Aug 17(Xinhuanet) -- China reduced its holdings of U.S. Treasury debt for a second straight month in June while the holdings of Japan and Britain rose.China's holdings fell by billion to 3.7 billion, a decline of 2.7 percent, the Treasury Department said Monday in a monthly report on debt holdings.Total foreign holdings of Treasury securities rose .6 billion to a total of trillion, an increase of 1.2 percent.The debt figures are being closely watched at a time when the US government is running up record annual deficits. A drop in foreign demand would lead to higher interest rates in the United States. The yield on Treasuries rises when fewer people invest in them.It would start with the US government paying more interest on its .3 trillion national debt and then ripple through the economy. Consumer loans such as home mortgages and auto loans track the yields on Treasurys, so they could rise, too.So far, interest rates in the United States have remained extremely low. A weak economy has depressed borrowing by the private sector and the Federal Reserve has kept a key interest rate at a record low level of zero to 0.25 percent in an effort to spur stronger growth.US interest rates have also been kept low by the European debt crisis in the spring. That triggered more investment in US Treasurys, which are considered the safest investment in the world because the US government has never defaulted on its obligations.China is the largest foreign holder of Treasury securities. The billion decline in China's holdings in June followed a .5 billion drop in May. China's holdings had hit a high for this year of 0.2 billion in April.There are concerns that China could influence US interest rates by rapidly selling off its holdings of US debt. That could lead others to dump their holdings and result in a spike in interest rates.But analysts say China is more likely to sell a little bit at a time."While it would hurt the United States if China started selling off our securities, it would hurt China just as badly because it would drive down the value of their holdings," said David Wyss, chief economist at Standard & Poor's in New York.Wyss predicted that China will slow its acquisition of new US government debt while diversifying its holdings. Wyss said that process has already begun, noting China's recent acquisition of energy and other natural resource holdings in Latin America and Africa.Japan, the second largest foreign owner of Treasury bonds, increased its holdings in June to 3.6 billion. That's an increase of .9 billion or 2.5 percent. Britain's holdings rose 3.5 percent to 2.2 billion.Japan had for years been the No 1 holder of Treasury securities, but was overtaken by China in September 2008.New government data showed that Japan lost its place as the world's second largest economy in the second quarter of this year. China moved up from No 3 to the No 2 spot, behind the United States.While the data on total economic output was for the second quarter, analysts believe China is on track to surpass Japan for the entire year and become the world's second largest economy.The US Treasury report said that net purchases of long-term securities, a category that covers not only US government debt but also debt of US companies, increased by .4 billion in June after rising .3 billion in May.
UNITED NATIONS, June 29 (Xinhua) -- A veteran Chinese diplomat and an expert of international law, Xue Hanqin, was elected judge of the International Court of Justice here Tuesday.Xue, a member of the International Law Commission, was elected by the UN General Assembly and the Security Council in separate voting.Xue won all 15 votes in the Security Council on Tuesday morning, Claude Heller, the Mexican UN ambassador who holds the rotating Security Council presidency for June, announced after the 15- nation Council cast the secret ballots.Heller, at the open Council meeting, also read a letter from the president of the General Assembly, Ali Treki, who said that Xue won a majority of votes in the 192-nation UN body.Xue "was elected member of the International Court of Justice," Heller said.The election was conducted under the relevant Security Council resolution to fill the vacancy after Judge Shi Jiuyong, a Chinese, resigned on May 28.She is the only female among the 15 judges of the International Court of Justice, and the third Chinese to serve on the Court.Xue told reporters here that she thanked all those who voted for her and said that she will carry out her duty under the UN Charter and the Statute of the Court.

HAIKOU, July 16 (Xinhua) -- Typhoon Conson landed at Yalong Bay of Sanya City, in south China's island province of Hainan, late Friday, causing casualties.Conson made landfall at 7:50 p.m., packing winds of up to 126 km per hour at the center, according to the disaster prevention office of Sanya, a tourist resort.It brought heavy rains and strong winds to Sanya, uprooting trees, pulling down billboards and light poles and partly cutting power supply.A security guard was buried in debris after a giant billboard toppled at about 7:26 p.m.. The man was found dead at about 11 p.m. after rescuers pulled away the billboard with the help of machines.A motorcycle rider was hit by a falling billboard and died at the site at about 8 p.m..The typhoon is expected to hover in the island for about 9 hours before it enters Beibu Bay on Saturday morning.The city had recalled to port all fishing boats by Friday noon and almost 40,000 people across the island had been relocated by 4:30 p.m..The typhoon, the first to hit China this year, has triggered high waves and cut some village roads.
HARARE, June 15 (Xinhua) -- Common Market for Eastern and Southern Africa (COMESA) Secretary-General Sindiso Ngwenya on Tuesday urged China to enter into joint ventures with Africa's largest regional trading and economic grouping to capitalize on the customs union that was launched last year.The Common Market for Eastern and Southern Africa, boasting 19 member states and a population of more than 450 million, is endowed with vast natural and human resources that make it a fertile investment destination, Ngwenya said."With a combined population of 456 million and a combined Gross Domestic Product of 450 billion U.S. dollars, this region is very rich in natural resources, rich in human resources and land for agriculture."This region will therefore become the region of first choice for investment and has the potential to feed the whole world," Ngwenya told Xinhua in an interview.He said China should take COMESA as its preferred investment destination and increase trade with Africa's largest trading and economic grouping.Ngwenya has previously urged more Chinese investment in the manufacturing sector so that Africa can move up the value chain and increase the incomes of its people while ensuring that less wealth is exported abroad.Trade between COMESA countries and China has also been growing by between 50 percent and 100 percent depending on the country, but on average by more than 50 percent annually and by the end of 2008 China-Africa trade was approaching the 100 billion U.S. dollars, according to Ngwenya.Ngwenya said the COMESA Customs Union presented immense opportunities for the Asian giant to deepen and consolidate economic cooperation with member states, most of whom it had strong bilateral, economic and political ties with. China has diplomatic relations with nearly all African countries.
BEIJING, Aug. 6 (Xinhua) -- Flood-triggered disasters have killed more than 1,450 Chinese this year, with another 669 missing, according to the Ministry of Civil Affairs.Lingering rainstorms have been slashing provinces including Shaanxi, Sichuan and Jilin this year, triggering floods and landslides, which have affected a population of 200 million and forced more than 12 million to evacuate, according to the ministry.Nearly 13.5 million hectares of crops were affected by heavy rains and floods, with 2.09 million hectares destroyed, while floods have also leveled more than 1.36 million houses.The total economic loss was put at more than 275 billion yuan(40.6 billion U.S dollars), according to the ministry.The central finance authority has recently allocated 195 million yuan to subsidize local governments in those regions worst-hit by natural disasters such as rainstorms and typhoons.The fund, which has been channeled to Jilin, Guangdong, Sichuan and Shaanxi, as well as the Guangxi Zhuang Autonomous Region, will be used in relocating residents, helping people rebuild homes and offering relief for residents who lost family members.
来源:资阳报