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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.
WUHAN, Aug. 12 (Xinhua) -- Bidding farewell to their hometown for good, 499 villagers in central China's Hubei Province left their homes Wednesday morning, becoming the first group to relocate to make way for China's South-North Water Diversion Project (SNWD).Their hometown of Niuhelin District, Danjiankou City, will be submerged by 2014 under 170 meters of water."I am surprised nobody cried when the coaches left our village. Last night, we felt sorrow when the whole village gathered to have our last dinner in our hometown together," a villager surnamed Wang said.The government paid the dinner and organized a troupe of gong and drum players to cheer up the villagers.Their journey was the starting point for the nation's largest relocation program after that of the Three Gorges Hydro-Power Project, which involved the relocation of 1.27 million.The relocation for the building of the central route of the SNWD by 2014 will involve 330,000 residents - 180,000 in Hubei and 150,000 in neighboring Henan Province.The project is designed to take water from a section of China's largest river, the Yangtze, to satisfy demand in the north China's drought-prone megacities - Beijing and Tianjin.According to the government, from Wednesday until September 30, about 60,000 people will be relocated.At the farewell scene, a fleet of 15 coaches carried the villagers while 34 trucks loaded with the villagers' belongings was followed by a number of ambulances with the village's elderly, unwell and pregnant."We may set a record in terms of speed of relocation -- 60,000 people within 50 days. We want to do it fast so we can finish it before the rainy season hits," said Zeng Wenhua, mayor of Danjiangkou City.

BEIJING, July 27 (Xinhua) -- China's largest gold producer said on Tuesday its operating profits rose by three fold to 1.55 billion yuan (228.09 million U.S. dollars) in the first six months this year.China National Gold Group Corp. said in a statement that its first-half revenue grew by 98 percent from a year earlier to 27.67 billion yuan and expected its full-year revenue to reach 50 billion yuan.At the end of June, the gold producer had 1,250 tonnes of gold reserves, eight million tonnes of copper reserves and 1.6 million tonnes of molybdenum, according to the statement.In the first half of 2010, the company added a total of 24.7 tonnes of gold, 683,000 tonnes of copper and 445,000 tonnes of molybdenum to its reserves, said the statement.The company had improved its development strategies through conducting merge and acquisitions, integrating regional resources and exploring overseas, said Sun Zhaoxue, general manager of the gold producer.
BEIJING, June 11 (Xinhua) -- China's Ministry of Agriculture (MOA) asked authorities in the nation's major wheat-planting areas to work to achieve quick summer grain harvests in spite of the difficulties posed by the extreme weather.This year's summer harvest has proven more difficult than usual because the ripening of winter wheat has taken place one week later than normal because of the bitterly cold weather last winter, while the consistently heavy rains that recently struck south China have impeded the harvest efforts, the MOA said.The ministry said local authorities should prioritize the harvest work and complete the harvest as quickly as possible.Reaping machine should be distributed properly in different locations to raise the harvesting efficiency, it added. Also, local departments should update information such as weather, market demands, prices and transportation to ensure a smooth harvest, the ministry noted.China's four major grain production areas have shown cautious optimism toward their 2010 summer grain output. Henan, Shandong and Anhui provinces expect output of wheat to be equal or slightly higher than last year, while Hebei province forecasts slightly reduced output, according to information coming from a high level agriculture meeting held earlier in May in Zhengzhou city, the capital of Henan province.According to the MOA data, China's summer grain output accounts for one quarter of its annual food yield.
GUANLING, Guizhou, June 29 (Xinhua) -- Chinese Vice Premier Hui Liangyu Tuesday urged local government to use all resources to rescue victims of a landslide in southwest China's Guizhou Province.Rescuers should save the lives of the victims and treat the wounded using all possible means, said Hui during an inspection tour of the disaster-hit area from late Monday to Tuesday.He also called for the utmost efforts to properly resettle people affected by the landslide and sounded caution regarding additional landslides.He said all areas prone to landslides should be examined closely and nearby residents must be evacuated immediately upon any sign of an impending landslide.Further, information about the disaster relief efforts should be made public in a timely, objective, open and transparent manner, said Hui.The landslide occurred at 2:30 p.m. on Monday in Dazhai Village, Gangwu Township of Guanling County, burying 107 people from 38 families. Rescuers said their chances of survival were slim.
来源:资阳报