In This EditionDelivering his New Year's address, President Hu Jintao says China will continue to develop friendly exchanges with other countries and positively participate in international cooperation on global issues.

People around the world set the mood for 2012.

Spain's new government says the public deficit for 2011 would come in at 8 percent of gross domestic product, well above a target of 6 percent.

And China says it will continue a prudent monetary policy and proactive fiscal policy in the New Year.

Hot Issue ReportsHu Makes New Year Address for 2012In a New Year's address, Chinese President Hu Jintao vowed that China will continue to develop friendly exchanges with other countries and positively participate in international cooperation on global issues.

While addressing domestic and overseas audiences via state TV and radio broadcasters, Hu urged the acceleration of the transformation of the country's economic development pattern and structural adjustments while making more efforts in ensuring people's livelihood.

"Ladies and gentlemen, comrades and friends,The bell for the year 2012 is about to ring. At this beautiful moment of bidding farewell to the old and ushering in the new, via China Radio International, China National Radio and China Central Television, I am delighted to extend the New Year greetings to Chinese of all ethnic groups, to compatriots in Hong Kong and Macao Special Administrative Regions and in Taiwan, to overseas Chinese and to friends all over the world!

2011 saw the start of the 12th five-year plan for China's national development. Facing complex international situation and arduous tasks in continuing domestic reforms, development and stability, Chinese people have united in their undertakings. We have continued to promote reform and opening-up as well as the socialist modernization drive. We have maintained a stable and relatively fast economic growth. New progress has also been made in building a well-off society in an all-round way. China has strengthened friendly exchanges and pragmatic cooperation with the rest of the world, and actively participated in the efforts made by the international community in promoting world economic growth and financial stability, improving economic management and resolving international and regional hot issues. Therefore it has made further contributions to world peace and development.

In the new year, we will unswervingly adhere to the road of socialism with Chinese characteristics, follow the guidelines of Deng Xiaoping Theory and the important thought of Three Represents, and further carry out the Scientific Outlook on Development. We will continue to properly deal with the relationship among maintaining a stable and relatively fast economic growth, adjusting economic structure and managing inflation expectations. We will accelerate the change of economic development mode and structural adjustment, focus on ensuring and improving people's livelihood and work hard to consolidate the healthy momentum of economic and social development.

We will uphold the principles of "one country, two systems", "Hong Kong people governing Hong Kong " and "Macao people governing Macao" with a high degree of autonomy. We will work together with our compatriots in Hong Kong and Macao to maintain long-term prosperity and stability in the two Special Administrative Regions. We will adhere to the principles of "peaceful reunification and one country, two systems," continue to promote the peaceful development of cross-Straits relations, maintain the essential interests of the Chinese nation and enhance the common interests of compatriots on both sides of the Taiwan Straits.

Peace, development and cooperation are the calls of the time and serve the common interests of people of all countries. At present, the world is moving further towards political multi-polarity and economic globalization while countries are depending more and more on each other. However, the recovery of the world economy is facing growing instability and uncertainty. International and regional hot issues have cropped up one after another. World peace and development are facing new opportunities and challenges. China will continue to follow its diplomatic mission of maintaining world peace and promoting common development, adhere to its independent foreign policy, take the road of peaceful development and implement a strategy of opening up for mutual benefit and win-win situations. It will develop friendly exchanges and mutually beneficial cooperation with all countries, on the basis of the Five Principles of Peaceful Coexistence, and actively participate in efforts of the international community in dealing with global issues.

I believe, as long as people of all countries work together, we will surely overcome all kinds of difficulties and risks and continually make new achievements in building a world with lasting peace, common prosperity and harmony.

Finally, from here in Beijing, I wish you all happiness, peace and good health in the New Year!"Beijing Residents Ring Big Bell to Embrace New YearChina's capital Beijing embraced 2012 by chiming the country's biggest bell.

About two hundred residents swarmed to Beijing's Big Bell Temple on New Year's eve to witness or take part in the traditional bell-ringing.

As the countdown came to an end, the temple's staff began hitting the 46-tonne bell amid cheers and applause.

They rang the enormous Yongle Bell -- or the Bell of Eternal Happiness -- 108 times. The chimes were meant to free the mind from the 108 burdens, according to Buddhist tradition.

Beijing residents also wished that the bell would bring them good fortune for the new year.

"At the beginning of the year, everyone wishes to build upon the life they have now and improve upon it. They wish for health for the elderly and happiness for the children. They wish for stability in their lives.""I am filled with hope for the new year. I wish for good health for my family and friends, and good academic results for myself."On the other side of the city, a few thousand people flocked to the Temple of Heaven for Beijing's first official New Year's Eve countdown.

While there were celebrations scattered across Beijing, the city's biggest party will take place on January 23 for the traditional Chinese lunar New Year.

Japanese Celebrations of the New YearThousands of Japanese have flocked to the historic Buddhist Zojoji temple in Tokyo to celebrate the start of the New Year by releasing thousands of balloons and ringing in 2012 to the gongs of the massive temple bell.

In keeping with Buddhist tradition, the 15-ton temple bell was rung 108 times to bring in the New Year.

As is often the case, many visitors looked to the new year to accomplish those goals they were unable to accomplish in the year that's just ended. 27 year-old Takuya Ooi is one of them.

"I'll be 28-years old this year, and this is true about both my work life and my private life, but there's a lot of goals that I'd like to go back and accomplish at some point that I haven't been able to yet."Millions are expected to flock to temples and shrines like Zojoji for celebrations throughout the new year holiday, which is due to end on January 3.

New Years Celebrations in AustraliaAustralians are also one of the first to greet the arrival of 2012. Earlier, I spoke with our Sydney correspondent Chen Xi, who spent the New Year's eve among the festive locals Aussies.

New York Ready for New Year CelebrationNew Yorkers have been counting down to the New Year's Eve celebration featuring the crystal ball descending in the Times Square.

Organizers of the New Year's Eve event flipped the switch on top of the roof of One Times Square and the colorful crystal ball ascended 130 feet up a pole and into the air.

The massive Times Square New Year's Eve ball is 12 feet in diameter and weighs more than 5,300 kilograms.

Tim Tompkins, President of the Times Square Alliance and one of the organizers of the New Year's Eve events, said the crystal ball is a global symbol of hope.

"It is this ball, it's this thing that literally, thanks to 32-thousand Philips LED lights, shines not just on New Year's Eve, but around the world and all year round. It's this symbol of hope, which of course New Year's Eve is about starting anew. The idea of letting go of the past, starting new with a sense of hope and having some beacon to represent that sense of hope as we look forward."Organizers say the crystal ball features cutting-edge lighting technology that allows it to illuminate a kaleidoscope of more than 16 million brilliant colors and billions of patterns.

About one million people are expected to gather in Times Square on December 31st to ring in the New Year.

This year's theme is "Let There Be Friendship."Spain Outlines Public Spending Cuts; Mix Feelings around PublicSpain's new government says the public deficit for 2011 would come in at 8 percent of gross domestic product, well above a target of 6 percent.

Deputy Prime Minister, Soraya Saenz de Santamaria, has outlined public spending cuts worth 11.5 billion U.S. dollars to tackle the deficit.

"We have a public deficit figure estimated for the end of the year which is much higher than what the previous government communicated to us. We are talking about an estimated public deficit for the end of the year of around 8 percent. This is an elevated budgetary deviation which will force us to take extraordinary decisions."Meanwhile, the government has announced income and property tax hikes and a civil servant wage freeze in response.

Spain has been under market scrutiny about its ability to control public finances, and Madrid has seen risk premiums soar to record highs on contagion fears as the eurozone debt crisis has spread.

Economy Minister Luis de Guindos says he is confident the new government's policy will bring Spain out of the crisis and re-establish confidence.

"I think that despite the incorrect data we have received from a public deficit point of view, I am convinced that this government's rapid response to correct it will be an important element in terms of generating confidence in the government's economic policy."Spaniards have expressed mixed feelings about the austerity measures.

"We'll have to see if this means cuts in social well-being. Any cut in social well-being is regrettable. It is the same with freezing wages. "Spain's new Prime Minister Mariano Rajoy has pledged to turn his country's battered economy around by meeting tough budget deficit reduction targets while reforming a broken labor market and pulling the country out of a prolonged slump.

China Sets 2012 Fiscal, Monetary StrategyChina will continue a prudent monetary policy and proactive fiscal policy to maintain the continuity and stability of its policies.

China's Central Bank has reaffirmed that the policies are expected to be fine-tuned as needed, in accordance with the changing needs of the economy.

China has recently announced it would maintain its proactive fiscal policy and prudent monetary policy in 2012 amid the current European debt crisis and a cooling property market at home.

Li Yang, Deputy Director of the Chinese Academy of Social Sciences, explains.

"It's the same wording in terms of the prudent monetary policy, but we will see adjustments in terms of perspective, emphasis, flexibility and even direction for the next year. In fact, we've already seen minor adjustment over the past two months."China switched to a prudent monetary policy at the end of 2010 from a moderately loose stance. It was a prelude to the country's campaign in 2011 to bring down inflation and curb housing prices.

China's Central Bank cut the reserve requirement ratio for banks in November for the first time since 2008. That's freed up cash to support economic expansion as Europe's debt crisis dampens overseas demand and the domestic property market slows.

Palestinians Protest against Jewish Settlements in East JerusalemIsraeli rights activists and Palestinians have demonstrated against Jewish settlements in a Palestinian neighborhood in east Jerusalem.

The rally was arranged by several organizations protesting against Jewish settlers who are battling in court to evict dozens of Palestinians from their homes.

Suhair Asaad, a student at Hebrew University, said she was enraged by the planned forced evictions.

"This is escalating because there might be an eviction of the Al-Kurd family. This demonstration is especially for this reason, and in general for all the latest attacks from settlers in the West Bank and Jerusalem. Our message is clear. We will never be quiet (about) house evictions in Sheikh Jarrah."An Israeli police spokesperson refused to comment on the event.

Jewish settlers are claiming plots of land in the Sheikh Jarrah neighborhood, which they say were owned by Jews before Israel's creation in 1948. They have already won property rights to six Arab homes whose residents were subsequently evicted.

Israeli Prime Minister Benjamin Netanyahu has vowed not to accept limits on the building of Jewish enclaves within Jerusalem, including in Arab east Jerusalem. He has also rebuffed U.S. calls for a full settlement freeze in the Israeli-occupied West Bank.

Palestinian President Mahmoud Abbas has said Arab east Jerusalem will be the capital of a future Palestinian state.

UN Briefing on Situation in Pibor Following UnrestA United Nations spokeswoman says the situation in the South Sudanese state of Jonglei is deteriorating, as thousands of heavily armed youths from the Lou Nuer ethnic group advance on the town of Pibor, a major town in the state.

Lisa Grande, the UN's deputy envoy for South Sudan, says many civilians have fled the ongoing violence in Jonglei and scattered in the bush.

"We don't know the exact numbers of displaced (people), but it is probably well over 20-thousand. And, as I said, we have information now that the people who are in Pibor have also fled. I think we have to expect that the number of people that are in the bush that have run for their lives and (are) looking for safety is going to be in the high tens of thousands."Grande says the UN had to suspend plans to deliver humanitarian aid on Friday morning after reports of deteriorating security in the affected areas.

"We had intended to start flying in food to Pibor literally today, and in fact, as the situation deteriorated, unfortunately we had to make the difficult decision to call back the plane that was rushing in the first food."Aid had made it as far as Bor, the capital of Jonglei state, where it was loaded onto a plane but then unable to proceed to the restive areas of the state.

Jonglei is one of 10 states in South Sudan, which became independent from Sudan in July.

The UN has estimated that fighting between the Murle and Lou Nuer communities in August killed about 600 people, wounded 850 and displaced 26-thousand.

The international agency says tens of thousands of people have fled Likuangole and Pibor and congregated south of Pibor, scattering in the bush or gathering where water and trees for shelter are available.

China Daily: High-Speed Rail Development Must Get Back on the Right TrackChina's State Council has published findings following an investigation into the high speed train crash in July that killed 40 people and left two hundred injured in Wenzhou, Zhejiang Province.

The investigation found that design flaws in the control equipment, sloppy management and a failure to respond properly to an initial equipment failure were to blame for the crash in which 40 people died. Fifty-four people are being held responsible for the tragedy, with their punishments publicly announced.

An editorial in China Daily newspaper suggests that holding those accountable for the accident should only be the start of an overdue review of the way the country's railways are managed.

It goes on to say that the Ministry of Railways should not remain immune from reforms, and demands that the corruption that has accompanied the development of the country's high-speed railways be rooted out once and for all.

The article continues that the conclusions of the investigation should spur the safe development of high-speed railways in the country.

The editorial affirms the authorities' responses to the accident, which included slowing down high-speed trains and ordering nationwide safety checks. But as the country speeds up its high-speed train development, it warns that faster train speeds will be meaningless until safety concerns are properly addressed.

***************************People's Daily: 2011 Was the Year of Government MicroblogsThe number of China's government microblog accounts reached about 20,000 by the end of November.

An editorial in the People's Daily newspaper hails the development, saying government microblogs have provided a platform for direct communication and interaction between officials and the public, reduced gaps in understanding between officials and the public, and encouraged the silent majority to express their opinions.

The editorial says various forms of government microblogs have become a powerful way for all levels of government to practice social management innovation. At the same time, they also have offered a platform for otherwise silent voices to be heard.

The editorial quotes a professor at the National School of Administration as saying that microblogs are changing the power balance of discourse between China's official and social spheres as well as the entire pattern of strong government and weak society.

The paper believes that the increasing number of microbloggers in China has changed the past manner of information dissemination in which the public just "listened" to what the government had to say via state media and had less opportunity to speak. The editorial notes that the public now has more opportunities to carry out a full range of government supervision.

Citing a member of China's Advisory Committee for State Information, the paper suggests that the government create conditions to guide its microblogs to ensure the participatory rights of citizens, and improve internet governance to ensure proper development of the government microbloging.