News & Reports 2012-04-29

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In This EditionChina and Russia signed 27 trade contracts worth 15 billion U.S. dollars during Vice Premier Li Keqiang's visit to Moscow.

The European Union opens its first office in Myanmar to encourage the country's reforms.

Egypt's opposition leader Mohamed ElBaradei and other prominent Egyptians launch a new political party which they hope would one day rule the country.

And manufacturers take advantage of the Beijing Auto Show to offer their solutions with green energy cars.

Hot Issue ReportsChina, Russia Sign 27 Contracts Worth 15 Billion USDChina and Russia have signed 27 trade contracts worth 15 billion U.S. dollars during Chinese Vice Premier Li Keqiang's visit to Moscow.

Addressing a meeting on China-Russia trade and investment, Li proposed that both China and Russia work together to further promote their trade and economic cooperation.

"We should further open our potential and find new spheres of mutual cooperation, carry out joint work in the areas of nanotechnologies, high-technology machine-building, energy saving, environmental protection, the bio-pharmaceutical sphere and information technologies. "Russian First Deputy Prime Minister Igor Shuvalov said Russia has made significant efforts to improve the business environment and create more favorable conditions for investors, but there is still room for further improvement.

"Generally speaking, what we see while communicating with Chinese businessmen quite often is the difference in mentality. They don't really understand how the law functions in Russia, and if something is incomprehensible it's always frightening."China is the top trade partner of Russia, with bilateral trade rapidly growing, which is expected to reach 100 billion US dollars by 2015.

EU Opens Office in Myanmar to Encourage ReformEuropean Union foreign affairs chief Catherine Ashton has opened the bloc's first Myanmar office, part of a wave of sunshine diplomacy following the EU's decision to suspend most trade sanctions on the long-isolated state.

The office in Yangon will be the bloc's first diplomatic representation in a country the West shunned while under military rule for about five decades.

The move was seen as a reward for Myanmar's recent political reforms, which included the release of political prisoners and the lift of a range of repressive measures.

But Ashton stressed that Myanmar should continue to walk down the path of reform and progress.

"They need to keep the momentum and they need to look at releasing all of the political prisoners. And in terms of the ceasefires, again, there's been quite a lot of work done but that needs to be now translated into long-term peace and security for the people in those areas."The European Union has suspended for one year a wide range of trade, economic and individual sanctions on Myanmar, although it left intact an arms embargo.

The suspension will allow European companies to invest in Myanmar, which has significant natural resources.

The EU has already offered 150 million euros in development aid to the country for this year and next.

Egypt's Former IAEA Chief Launches New Political PartyEgypt's opposition leader Mohamed ElBaradei and other prominent Egyptians have launched a new political party which they said would one day rule the country.

The former head of the International Atomic Energy Agency pulled out of the race for the Egyptian presidency in January.

But his role in the new Dustour Party shows the Nobel Peace Prize winner and political liberal aspires to play a leading role in the future of the country of 80 million.

ElBaradei has been a vocal critic of the army council that assumed power when Hosni Mubarak was swept from office by an uprising in February last year.

Since Mubarak's fall, left wing activists and liberal political parties that spearheaded the uprising have become disenchanted with the military's handling of the transition.

ElBaradei told a news conference on Saturday that the Dustour party was founded to rescue the revolution.

"There are high expectations, and many challenges, and we must all work to achieve the hopes and aspirations of the Egyptian people. I am completely confident that this party, God willing - it will govern Egypt in the future and it will found the Egyptian renaissance in the future."The Dustour party's founding is likely to shake up the Egyptian political scene that has been dominated by Islamist parties lead by the Muslim Brotherhood since Mubarak's fall.

Thousands Rally in Kuala Lumpur for Electoral ReformAt least 25-thousand demonstrators have gathered in downtown Kuala Lumpur to participate in a mass sit-in rally for electoral reform.

It is one of the biggest street rallies in Malaysia in the past decade.

Police arrested about 1,600 people and fired teargas and water cannons to disperse the crowd.

The protesters demanded sweeping changes that include cleaning up the electoral process and extending the election campaign period to 21 days.

They believe the current arrangements will benefit Prime Minister Najib Razak's long-ruling coalition in the upcoming elections.

Parliamentarian Sim Tong Him, who participated in the protest, said he is disappointed with the government.

"Basically, I think the way the government has handled this time is very unfriendly towards citizens. Like I said before, not only have they misused their power, they have also not shown any sincerity in letting the people enjoy their right to gather, which is stated in the constitution."The protest, held simultaneously with similar protests in several other cities across Malaysia, came months before Razak is expected to call for snap voting.

UN Observers Visit the Northern Syrian Town of IdlibA group of UN observers traveled to the northern Syrian town of Idlib on Friday, to prepare for the arrival of additional monitors to the country.

They have also passed various trouble-spots that have seen violence between rebel fighters and forces loyal to President Bashar Assad, including the oil refinery at Homs and the town of Hama.

Following the day's activities, the head of the observer team, Colonel Ahmed Himiche, said progress had been made.

"We achieved one of our main tasks, which was liaising with the parties in order to prepare and plan for the arrival of the 300 monitors that have been mandated by the Security Council. So this step is a step forward."At the end of the tour, two UN military observers were stationed in Idlib, where the situation is deteriorating.

Officials: Upcoming China-US Dialogue to Expand CooperationSenior Chinese officials now expect the upcoming fourth round of the China-U.S. Strategic and Economic Dialogue to manage disputes and enhance cooperation between the two powers.

The officials have also revealed that the two countries will resume negotiations on a two-way investment protection agreement during their meetings next week.

XYee has the details.

The two-day fourth round of the China-U.S. Strategic and Economic Dialogue is scheduled to open in Beijing on May 3rd. This comprehensive, high-level consultation comes during an election year for the world's two major powers.

Speaking at a press briefing in Beijing, China's Vice Foreign Minister Cui Tiankai said he has high expectations for the upcoming dialogue.

"With next week's meetings, the Chinese side aims to deepen our mutual understanding and trust while properly coping with our disputes. We also want to expand our cooperation on both the bilateral and multilateral levels as well as explore ways to build a new type of relations between big nations based on mutual respect and mutual benefit."A previous government statement said Chinese Vice Premier Wang Qishan and State Councilor Dai Bingguo would co-chair the dialogue with U.S. Secretary of State Hillary Clinton and Secretary of Treasury Timothy Geithner.

Cui Tiankai says this year's dialogue will involve officials from more than 20 government departments from both sides. He says Beijing will arrange for more small-scale meetings among high-level officials to thoroughly exchange views on issues of common concern.

The diplomat also says discussions will be held between military representatives from both sides, the second of their kind under the framework of the China-U.S. Strategic and Economic Dialogue.

The upcoming dialogue is expected to cover a wide range of international issues, including climate change, energy security, the Korean Peninsula situation and tensions between Sudan and South Sudan.

Meanwhile, participants will also tackle various economic topics, including global economic governance, economic restructuring in both countries, and how to promote trade and investment.

Chinese Vice Finance Minister Zhu Guangyao says China and the U.S. will re-activate the stalled negotiations on a two-way investment protection agreement next week.

He said although the two sides had held six rounds of technical-level consultations on the agreement, negotiations had been suspended due to the U.S. side's internal assessment of the text.

"The two sides will announce the resumption of the negotiations during the dialogue. China's stance is clear that we welcome progress in reaching such a deal between our two major economies."China and the U.S. began negotiations on the two-way investment protection agreement in 2008. It has been regarded a significant move as both American and Chinese companies seek to expand investment in each other's market.

China and the U.S. started the Strategic and Economic Dialogue in 2009 to help both nations manage their bilateral relations and promote communication.

For CRI, I'm XYee.

Automakers Progressing with Green TechThe prospect of new energy cars is a hot topic at the ongoing Beijing Auto Show 2012, along with dazzling upscale SUVs and limousines. As CRI reporter Natalie Thomas observes, visionary carmakers are trying to offer more practical solutions to Chinese motorists, rather than just display concept models.

A new car brand must be based on daredevil ideas to win a place in an exhibition hall full of luxury brands, such as Ferrari, Maserati and Rolls Royce. But that is something Denza is trying to defy.

The young brand was established only a few weeks ahead of the largest auto festival in China, which runs from late April to early May. It is the maiden concept car from a new joint venture between German auto giant Daimler and Chinese partner BYD. The company is solely dedicated to new energy vehicles.

Instead of being an oddly shaped, sci-fi concept that can only be displayed on an exhibition stage, the blue, all-electric sedan model is set to impress more consumers in China. Lian Yubo is the CEO of Shenzhen BYD Daimler New Technology. He says Denza aims to blend cutting-edge green technology with outstanding mobility solutions.

"Denza will try to define a new level of sophistication in the Chinese new energy vehicle segment. BYD is providing its expertise in battery technology and e-drive systems as well as its experience in putting electric vehicles on the roads of China. Daimler is contributing more than 125 years of excellence in automotive design and know-how in vehicle architecture, safety and quality. In short, we are trying to develop a high-end electric car brand."Lian also says the 4.6-meter-long car features an ambient light system, lounge-like interior, wood and copper detailing, and rear-hinged rear doors. All these will cater to Chinese customers who value safety, comfort, quality and accessibility.

Denza's debut comes after the price of gas in China hit a record high of more than 8 yuan per liter in March, with little indication of a major drop. Lian Yubo believes this provides a good opportunity for electric cars, as potential buyers have to think twice about how they can reduce their driving costs.

"For example, if I drive 100 kilometers in an electric car, 20 kilowatt-hours of energy will be consumed. If I charge my car in the evening, it will cost less than 0.5 yuan per kilowatt-hour, and the total cost will be about 10 yuan. But if I drive a conventional car, 10 liters of petrol will be consumed, and I would have to pay 80 yuan. Therefore, the driving cost would be dramatically reduced. In that case, new energy cars will become popular, even without purchase incentives from the government."Swedish automaker Volvo also has some tricks up its sleeve at the Beijing auto show. Its eco-friendly product is a hybrid plug-in SUV which splits petrol and electric power between the front and rear axles, respectively, for better fuel efficiency and driving performance.

Lennart Stegland is in charge of R&D of Volvo's electrical propulsion systems. He explains the technology in detail.

"What we introduce here is XC60 plug-in hybrid. This time, we have combined it with the next motor generation or engine generation, which we find in Volvo is a highly efficient four-cylinder engine, which is equipped in such a way with what we call a crank ESG and electrical e-drive in the rear, and with a range of 45 kilometers can give the combination of both a pure electrical drive and very powerful drive. That is in a car which is petrol-end in the front, which we work with China and the United States."Stegland says some European countries also have preferential practices for new energy vehicles, such as exemption from traffic congestion fees and recharging stations at workplaces where employees can plug their cars in during the day. That is something China can learn from.

For CRI, I'm Natalie Thomas.

2nd Beijing International Film Festival Comes to an EndChina's film industry, deemed lagging behind not just the developed world but also some developing nations, now appears to have set out on a road to fast development. With the Second Beijing International Film Festival drawing to a fruitful conclusion Friday, over five billion yuan worth of contracts for film projects were inked. That almost doubled the figure for the first festival last year. 600 film institutions from home and abroad with some 2,000 film professionals, including legendary American director James Cameron, attended the festival.

Tianyi has more.

Only the second year for the Beijing International Film Festival, it has made a total of more than 5 billion yuan, or 800 million US dollars, in contracts from 600 different film production companies from all over the world.

Pang Wei, spokeswoman for the organizing committee of the Second Beijing International Film Festival and Deputy Director of Beijing Municipal Bureau of Film, Radio and Television, says that communication and business trading was the most important aspect of the Beijing International Film Festival.

"One of the most important goals for hosting this great event is collecting excellent movie resources from around the world and building a platform for the world's filmmakers to discuss development in the industry and share business opportunities. We will stick to this principle in the coming festivals."Since the first Beijing International Film Festival, the organizing committee has put a great deal of focus on its film market.

Pang Wei says the increase indicates that the 2nd Beijing International Film Festival garnered more and more attention on the international stage and that its impact is becoming stronger.

"Beijing has its special market resources. Almost every filmmaker has had their project here in Beijing. And more than 70% of China's domestic movies have shot in Beijing. Also, in recent years, the Beijing Municipal Government has paid much more attention in building a public movie market. All of these have contributed to the current prosperous movie market in Beijing."Unlike the Shanghai International Film Festival, the only A-Category international film festival in China at present, the Beijing International Film Festival puts attention on building Beijing as an oriental movie hub.

There are also hopes Beijing can be the largest movie trade center in Asia and, if possible, the world.

Richard Brownsey, President and Chief Executive Officer of British Columbia Film Media, who attended the first and second Beijing International Film Festival says that the progress of the film festival in Beijing is amazing.

"The festival is developing better than I would have imagined that it could. I thought last year was a wonderful first effort, and this year it is even better. I suspect it is going to continue to get better each year."The Beijing International Film Festival has not set up its own particular prize yet. The organizing committee stated that it will definitely have the prize next year. There is no doubt that the Beijing International Film Festival will become a grand international film festival in the future.

For CRI, I'm Tianyi.

China Daily: Friendship between China and Russia DeepensChinese Vice-Premier Li Keqiang's official visit to Russia this week came at a time when the country's two navies were conducting a joint drill in the Yellow Sea off the east coast of China.

An editorial in China Daily says Sino-Russian ties at present are enjoying robust health in many fields, and Li's first international trip this year will enrich bilateral relations and deepen cooperation between Beijing and Moscow.

The editorial goes on to say the two neighbors have maintained frequent high-level political contact. President Hu Jintao met his Russian counterpart Dmitry Medvedev in late March during the fourth BRICS Summit, and both are committed to pushing bilateral relations to a new level.

The editorial also notes the economic benefits that the two countries enjoy from their pragmatic cooperation. Their bilateral trade volume reached nearly $80 billion U.S. dollars last year, a year-on-year increase of more than 40 percent.

Furthermore, the editorial says the two nations are promoting more cultural and people-to-people exchanges to deepen mutual understanding. China is hosting the "Russia Tourism Year" this year, and Russia will host the "China Tourism Year" in 2013.

The editorial points out that as permanent members of the United Nations Security Council, China and Russia have worked together to address key international issues, such as seeking a peaceful settlement to the Syrian crisis and facilitating an early resumption of talks to resolve the Iranian nuclear issue.

In conclusion, the editorial says China and Russia have become an indispensable force in the quest for a multipolar world through close cooperation in multilateral platforms such as the United Nations and Shanghai Cooperation Organization.

***************************Global Times: Security Dilemma in Asia Needs Fresh InputEarlier this week, Pakistan announced the successful test of a mid-range, nuclear-capable missile. The move was seen as a reaction to India's launch of the long-range missile Agni-V days earlier. At the same time, speculation about North Korea's third nuclear test has been swirling.

In light of these developments, a commentary in the Global Times says regional powers need to come up with fresh input to avoid a security dilemma in Asia. It explains that a lack of strategic trust is one of the main reasons behind some countries' intent to acquire crucial striking weapons.

The commentary argues that the failure of the United States, South Korea and Japan to understand North Korea as well as India's failure to understand Pakistan have been minimal compared to the hostility between each of them.

It also says the U.S., China, India, Pakistan and North Korea are trapped in a security dilemma.

The newspaper contends that it is now important for stronger countries to avoid being overly assertive in order to alleviate weaker nations' sense of insecurity.

The commentary notes that China, as the largest country in Asia seeking peaceful development, is highly concerned about regional tensions. As a result, China has been making various efforts to help the other nations resolve disputes and reach agreements within Asia. It goes on to say that it is important for China to continue its efforts.

Meanwhile, the commentary urges Washington and its Asian allies to try more conciliatory approaches as weaker countries will not be brought to their knees by intimidation.