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BEIJING, Aug. 3 (Xinhua) -- China kicked off a five-day military exercise in two provinces on Tuesday in which 12,000 military personnel and seven types of military aircraft are taking part.The military exercise, code-named "Vanguard-2010", was carried out simultaneously in seven cities across the provinces of Henan and Shandong at 8:21 a.m. Tuesday and featured simulated emergency evacuations and planning for combat.The drill, consisting of two phases from Tuesday to Saturday, will feature emergency evacuations, war planning, reconnaissance, early warning activities, ground-to-air attacks and evacuations of command posts during its first phase ending Thursday.Its second phase consists of testing Chinese air defense troops' ability in fighting air units in a "complicated electromagnetic environment."At 8:21 a.m. on Tuesday, air defense forces from the People's Liberation Army (PLA) and paramilitary forces in the seven cities including Qingdao, Jinan, Zhengzhou and Kaifeng began evacuation plans and successfully moved to designated areas, screens at the drill's commanding headquarter showed.By about 10:10, an air defense brigade from the PLA Jinan Military Command led by its commander, Zhao Geng, had already traveled 100 km and begun to formulate war plans.

HONG KONG, July 9 (Xinhua) -- A moderate earthquake measuring 5. 2 on the Richter scale struck the east coast of Taiwan on Friday, the U.S. Geological Survay (USGS) said.The quake hit at 3:43 a.m. local time (1943 GMT Thursday), at about 90 km southeast of Taipei at a depth of 21 km, according to the USGS.

BEIJING, Aug. 23 (Xinhua) -- The value of the gross output of China's auto industry surged 49 percent year on year to 2.086 trillion yuan (308 billion U.S. dollars) in the first half of the year, officials at the Ministry of Industry and Information Technology (MIIT) said Monday.At the same time, total export and import volume jumped 84 percent year on year to 50.66 billion U.S. dollars, according to a MIIT statement posted on its Web site.From January to July, China's auto output and sales both exceeded 10 million units. In July, China's auto output stood at 1.29 million units, up 16 percent year on year, while sales stood at 1.24 million units, up 15 percent year on year, MIIT said.Also, the Chinese government decided in June to extend an auto replacement subsidy program by six months until Dec.31 this year.Begun in June of 2009, the subsidy aims to help get highly polluting vehicles off the road while stimulating automobile consumption.Under the program, consumers who trade-in their used small-and medium-sized trucks and some mid-sized passenger vehicles for a new one are eligible to receive a subsidy of 3,000 to 6,000 yuan.By the end of May, the Chinese government had handed out 1.7 billion yuan in subsidies for 127,000 trade-in vehicles.The subsidy program has boosted domestic automobile spending by 15 billion yuan, according to officials at China's Ministry of Commerce.

BEIJING, July 9 (Xinhua) -- Pakistani President Asif Ali Zardari on Friday expressed his optimism over the possible road link with China, saying the construction of the road would boost bilateral trade.Zardari is on his five-day working visit to China, the fifth China tour since he took office as the Pakistani president in 2008. Zardari who once called himself "the first businessman president of Pakistan", said that he had his own "concept" for improving Pakistan-China trade relations.A road connection with China is one of his ideas to make this happen."If you want to come to Pakistan or southeast Asia from China by sea, it will take months, but if you look at the road transportation to my port, it's only 1,100 miles from your border," said Zardari in an interview with Xinhua.Zardari's remarks came amid some reports that China and Pakistan are considering building a rail link to reach the Arabian Sea."The concept has been accepted," said Zardari without elaborating.China and Pakistan have maintained their "all-weathered" and time-tested friendship for decades.Now there are more than 120 companies and about 10,000 Chinese nationals in Pakistan, involved in sectors such as mining, energy exploration and infrastructure building.But Zardari said Pakistan needs more investment.China-Pakistan trade in the first five months of this year reached 3.3 billion U.S. dollars, up 31 percent.While addressing the China-Pakistan Economic Cooperation Forum earlier Friday, Chinese Commerce Minister Chen Deming said that bilateral trade could hit 15 billion U.S. dollars in 2015.On the just-concluded China-Pakistan anti-terror drill in northwest China, Zardari said the two countries should keep united in the fight against terrorism.

BEIJING, Aug. 4 (Xinhua) -- China's foreign exchange regulator Wednesday pledged to continue efforts to manage illegal capital inflows in the second half of the year.In a statement on its website, the State Administration of Foreign Exchange (SAFE) said it had investigated up to 3.5 million cases of international trade transactions, involving a total of 440 billion U.S. dollars, during its hot money monitoring campaign, which began in February.The statement said it had identified 197 cases of illegal capital inflow, but it gave no exact sum for the cases.SAFE said earlier last month that its investigations had found 190 cases, involving 7.35 billion U.S. dollars, of hot money inflows.Capital flows into and out of China for purposes other than import and export payments are strictly controlled by SAFE, which manages the country's 2.45 trillion U.S. dollars in foreign exchange reserves.The statement also said it would introduce new foreign exchange instruments to meet domestic market demand and support China's currency reforms.China's central bank announced on June 19 that it would further the reform of the formation mechanism of the yuan exchange rate to improve its flexibility.The hot money campaign was launched amid concerns that speculators were betting on an appreciation of the Chinese currency and rising asset prices.