Top Story

STR/AFP/Getty Images

Is the world's most dynamic economy headed for the rocks? Chinese stocks have taken a pounding over the last six days on speculation that the central bank will raise interest rates to quell worsening inflation. But it gets worse, Newsweek reports.

Earthquake

China has declared a "decisive victory" over the "quake lake" in Sichuan province, and evacuees have begun returning.

The government is planning a massive reconstruction of the earthquake zone.

Some are asking if the quake could usher in social and political change.

Politics

The Dalai Lama has begun a five-day visit to Australia, but he won't be meeting PM Kevin Rudd.

Treasury Secretary Hank Paulson laid out his views of U.S.-China relations in a preview of next week's "strategic economic dialogue" meeting. Some quality analysis here from the New York Times.

China denied hacking the laptop of U.S. Commerce Secretary Carlos Gutierrez when he visited Beijing in December. Influential U.S. Congressman Frank Wolf also says his office has been hacked.

Time asks if Beijing is taking a harder line on Tibet.

Economy and Business

Chinese exports rose 28 percent in May, compared with the previous year.

Beijing is planning to boost its nuclear-power capacity to 60 gigawatts or more by 2020.

Hong Kong slaughtered its chickens after a bird flu scare.

China is using up its natural resources at twice the rate of replacement, according to a new report by WWF China.

Taiwan

Taiwan and China are resuming formal talks after 10 years, with a focus on travel and trade.

China Moment

More than 4,000 babies have been named "Olympic Games" in the past 15 years.