Diplomacy

Xi and Obama stress economic ties

The leaders of the world's two largest economies focused on strengthening closer economic ties during their meeting on June 8, with President Xi Jinping calling for more cooperation in bilateral investments, energy and infrastructure, as well as more local exchanges.

Xi said the US and China have formed a highly complementary and interdependent economic relationship, adding that their cooperation will also benefit the global economy.

However, Xi cautioned against trade protectionism and called for the US to loosen restrictions on high-tech exports to China, and for the creation of a level playing field for Chinese investors in the US.

Obama said the US welcomes Chinese investment and vowed to take action on the restrictions. He also agreed to closer cooperation with China in trade and energy.

China to strengthen ties with Mexico

Chinese and Mexican enterprises should foster new growth engines in areas such as energy, mining, infrastructure and high-tech, China's President Xi Jinping said in a speech to business leaders in Mexico City on June 5.

Xi, who was on a state visit, told about 400 Chinese and Mexican business leaders that the countries are at an important stage of development and that they are complementary in many areas, including resources, technology, capital and market. The two countries elevated their relationship to an overall strategic partnership on June 4.

Mexican President Enrique Pena Nieto called for more Chinese investment and stressed the importance of a trade balance between the two countries.

Trade

Probe into EU wines 'not retaliatory'

China has launched an investigation of EU wine imports, officials said on June 5, a day after the bloc announced duties on Chinese solar products. The Ministry of Commerce said it was not a "retaliatory measure".

The EU announced provisional anti-dumping duties on imports of solar panels, cells and wafers from China following a nine-month investigation. The tariffs start at 11.8 percent for the first two months, followed by 47.6 percent for another four months.

China's wine imports rose 8.9 percent to 430 million liters in 2012, according to the General Administration of Customs. The imports were valued at about $2.57 billion. The EU accounted for more than two-thirds of the imports, with France being the biggest exporter.

Science

Partnership for Arctic research

China is to expand its study of the Arctic's resources and the region's shipping and economic potential, the Polar Research Institute of China said on June 5.

It plans to establish a China-Nordic Arctic Research Center in Shanghai to increase awareness and knowledge of the area and promote cooperation for its sustainable development.

The center, which will be launched in partnership with a number of research institutes in the Nordic region as early as next year, will also undertake research on climate change and policy and legislation related to the area, and will provide opportunities for Chinese and Nordic scholars through fellowships and scholarships.

Finance

Auditors suspect fraud in project funding

Chinese auditors have found irregularities in 34 foreign or partly foreign-funded 2011 projects involving 5.02 billion yuan ($819 million; 617 million euros), including 46.65 million yuan in foreign capital.

The figure included a misappropriation of 29.27 million yuan ($4.78 million) in four projects that used foreign loans or assistance, the National Audit Office said on June 5.

The suspected fraud was found following an audit conducted last year on 94 government projects in accordance with Chinese law and agreements with international organizations. Major problems unearthed included violations of laws, regulations and loan or assistance agreements. Also discovered were inadequate internal controls, including fraudulently obtained funds or embezzlement.

Culture

Still reel potential for Chinese films abroad

The overseas gross of Chinese films dropped 48 percent between 2011 and 2012, but private companies and a new genre have given the industry more potential than ever before, according to a report released by the Institute for International Communication of Chinese Culture on June 5.

The report found that 59 titles were released overseas last year, a 13 percent increase from 2011, but receipts, including box office and copyright sales, were only 1.06 billion yuan ($170 million; 130 billion euros), about half of the 2011 gross.

However, Chinese films had a broader global reach. Last year they were released in 80 countries and regions, compared with only 22 in 2011.

"China's domestic box office has been booming in recent years, but Chinese films' exposure and influence in the global market has not lived up to many people's expectations," said Huang Huilin, professor at Beijing Normal University and one of the report's compilers.

Economy

Lower inflation points to weaker economy

China's annual consumer inflation slowed last month, according to data released on June 9, suggesting that the world's second-largest economy could be weaker than expected.

The National Bureau of Statistics said China's consumer inflation rose 2.1 percent, 0.3 percentage points lower than one month earlier or the lowest in three months, while producer prices fell 2.9 percent from a year earlier, the lowest since September.

Grain prices rose 5.1 percent, meat and relevant product prices went up 1.6 percent, and vegetable prices fell 1.9 percent. Consumer prices fell 0.6 percent in May compared with April.

The bureau said more than 80 percent of the monthly decline in the CPI was due to the drop in vegetable prices when supplies climbed due to warm weather. Vegetable prices fell 13.8 percent in May from April.

(Source: China Daily)