Top Story

In a new tally, Chinese officials said Monday that six infants died and nearly 300,000 were sickened by melamine-tainted milk during the recent scandal. A Ministry of Health statement revealed that 860 babies are still hospitalized with urinary-tract or kidney problems, 154 of them in serious condition.

Confidence in China's dairy industry remains weak as year-on-year dairy exports dropped 92 percent in October. However, heavily discounted valuations for Chinese dairy companies prompted the U.S. private equity firm KKR to invest $100 million in one Chinese raw milk supplier, seeking to ride the $18 billion market back up as regulation strengthens and people return to consuming milk.

KKR's vote-of-confidence shows that industry experts believe the Chinese government is capable of implementing and enforcing effective regulations. The scandal, however, which involved large numbers of small milk suppliers, illustrates the difficulty the government has had in addressing agricultural and food-safety problems before they become crises. Prevention is the next step.

General News

Taxi strikes spread to the city of Foshan in Guangdong province. Three-hundred drivers are protesting exorbitant management fees and lax regulation of unlicensed cabs.

Inflation has eased with the slowing economy, prompting Chinese officials to drop food-price controls enacted earlier this year.

Charter flights have retrived the last of more than 3,000 Chinese citizens that were stranded in Thailand after protesters shut down Bangkok's main airports.

Politics

China's vice premier, Wang Qishan, called for more concrete measures to stimulate domestic demand as Chinese exports continue to fall.

Some 770,000 people took the national civil service exam on Sunday. They are vying for 13,566 government spots.

Business & Economics

The China National Petroleum Corporation signed a $3.29 billion deal to build an oil pipeline in the United Arab Emirates.

Coca-Cola submitted an application to Chinese anti-trust regulators, hoping to win approval for its acquisition of Huiyuan Juice Group, which commands half of China's juice market. 

Science & Environment 

China launched the "Yaogan IV" satellite, which will conduct land surveys and aid in disaster prevention and relief.

China Moment

Earlier this year, retired New York City subway cars were turned into underwater reef habitats off the U.S. coast. As for Beijing's old subway cars, many now house impressionable youngsters. Beijing sent 60 cars to quake-affected Sichuan province, where they were converted for use as student dormitories.

Photos: China Photos/Getty Images

Top Story

Chinese President Hu Jintao was in Havana, Cuba yesterday, where he signed more than a dozen economic agreements between China and Cuba. The deals included purchases of Cuban raw materials such as nickel and sugar, a $70 million pledge to help renovate Cuban hospitals, and the postponement of debt payments that Cuba owes China.

Hu also met with former Cuban President Fidel Castro, whom he praised for having struggled "to safeguard state sovereignty" and adhered "to the path of socialism, thus winning respect from people worldwide, including the Chinese people."

Granma, the Cuban Communist Party mouthpiece newspaper, imparted praise on China's economic reforms the day before the visit, but also criticized the income disparities that have arisen. It will be interesting to see which of the reform precedents set by China, arguably the most important of Cuba's communist brethren, President Raul Castro may deem appropriate for the island nation.

General News

Twenty-one people are dead after a subway tunnel under construction collapsed in the eastern city of Hangzhou.

Thousands of protesters clashed with police in northwestern Gansu province over a government plan to resettle residents. This latest in a string of unrest in western and southern China has officials concerned that forthcoming economic hardship could cause isolated incidents to spread into wider discontent.

The U.S. Food and Drug Administration opened offices in Beijing, Shanghai, and Guangzhou to prescreen Chinese goods bound for the U.S.

Politics

China rejects the possibility of sending troops to Afghanistan.

Despite warming relations between China and India, India has cast suspicion on China's growing presence in the region, especially in The Maldives.

Business & Economics

A long awaited fuel tax will soon come into effect. Proceeds are to replace road tolls as a means to fund highway construction.

China's internet-based economy grew by 52.2 percent in the third quarter, with advertising and games making up 72.7 percent of the total income.

Science & Environment

In a bid to reduce chemical residues in milk, Chinese scientists are using herbs in place of hormones to increase milk production in cows.

A new study finds that 12 percent of Chinese children and adolescents in big cities are overweight and notes a growing rate of diabetes.

China Moment

After catching a Ningbo teenager illegally posting advertisements, officials had the boy cover his body with those advertisements as punishment. Naturally, the pictures wound up online and have sparked debat. (Hat tip: WSJ China Journal.)

ADALBERTO ROQUE/AFP/Getty Images

Top Story

A historic meeting between Chinese and Taiwanese officials continues in Taipei today. The five-day visit by the top mainland official on cross-strait relations, Chen Yunlin, marks the highest-level talks between Taiwan and the mainland since the two split in 1949. The talks have already yielded an agreement on expanded cross-strait flights, trade, and mail links, and is slated to address greater cooperation in the financial industry.

Taiwan's opposition Democratic Progressive Party (DPP), which favors independence, is keeping up the pressure with mass protests in Taipei. DPP spokeswoman Cheng Wen-tsang has complained that "people's rights, personal liberties, freedom of speech and judicial rights were seriously violated" by the signing of the agreements.

However, recent DPP measures promoting independence, including a referendum earlier this year that sought the public's approval for Taiwan applying for U.N. membership, have fallen flat. With some 1 million Taiwanese businessmen working on the mainland, more agreements liberalizing trade and travel will likely be the norm.

General News

Flooding and landslides caused by torrential rain kill 51 in southwestern China.

Striking taxi drivers in Chongqing smashed 103 cabs and three police vehicles while protesting the high fees that taxi companies extract from drivers.

A newly proposed regulation could make Aug. 8, the anniversary of the opening of the Olympic Games, a national fitness day and require public sports facilities to admit the public for free.

Politics

President Hu Jintao and Premier Wen Jiabao congratulated Barack Obama on his election victory.

A panel of Chinese experts foresee China becoming a full welfare state with universal health care and old age pensions by mid-century.

Business & Economy

China and other Asian countries are eager to see whether a President Obama will follow through on protectionist campaign promises.

Bright Dairy & Food Co., a major name in the tainted milk scandal, posted a third quarter loss of 277 million RMB (US$41 million), compared to 390 million RMB in profits (US$57 million) a year ago. Other major dairy producers expect similar results.

Science & Environment

China plans to take to the skies with its own commercial jumbo jet before 2020.

In preparation for the 2010 World Expo, Shanghai has enacted new green policies that seek to reduce pollution and stimulate investment in environmental protection.

China Moment

Release the hounds! Er. . . the Chinese public, I mean. A swarm of Chinese Internet users tracked down and humiliated an official accused of assaulting a girl.

Photo: PATRICK LIN/AFP/Getty Images

MARK WILSON/Getty Images

Top Story

China's GDP growth dipped to 9 percent in the past three months, the slowest rate in five years. The economy has been dragged down by a slump in the real estate market, weak exports, and a softening of consumer spending, in addition to increased pressures from the global financial crisis.

President Hu Jintao and U.S. President George W. Bush spoke over the phone Wednesday about the ongoing crisis. Hu seems to be growing more concerned about the condition of the U.S. financial system. Some analysts believed that resiliency in the Chinese economy could head off a worldwide recession, but slowing domestic demand will make China more vulnerable to decreases in investment from abroad.

The government has taken such measures as waiving fees on real estate transactions and offering export rebates to bolster the economy. The recent slowdown, however, has not necessarily been unwlecome. China's economic planners have spent years enacting measures to prevent the economy from overheating. The question is: Is economic growth now down to a sustainable level, or were these moves too heavy-handed?

General News

Pro-Taiwan activists assaulted an envoy from the mainland on Tuesday in southern Taiwan.

President Hu Jintao met with the Vietnamese prime minister in Beijing Wednesday. They pledged more high-level contacts between the two countries.

Officials are taking measures to ease a drought in Hunan Province that has led to shortage of water for 78,000 rural people.

Politics

Former Beijing Vice Mayor Liu Zhihua received a suspended death sentence this week for taking 6.97 million RMB (US$1.02 million) in bribes while in office.

Taiwan President Ma Ying-jeou vowed no war will break out with the mainland while he is in office.

Business & Economy

PetroChina announced it may acquire overseas oil companies that have been hurt by the global financial crisis to meet growing domestic demand.

Microsoft Windows users got an unwelcome surprise with their latest software updates. In an effort to crack down on pirated copies of Windows in China, the new patch from Microsoft turns users' screens black and admonishes them for using pirated software.

Science & Environment

Beijing's government plans to award companies up to 2.3 million RMB (US$336,500) for cutting high-pollution production.

In an interview with Science, Chinese Premier Wen Jiabao commented that future economic growth in China is to be accompanied by a 4 percent annual decrese in energy consumption.

China Moment

Too many people, not enough beds? German photographer Bernd Hagemann has a collection of photos showing Chinese people taking naps on any surface, in all manner of contorted poses.

Chung Sung-Jun/Getty Images

Top Story

A $6.5 billion U.S. arms deal with Taiwan has soured relations between the U.S. and China. In reaction to the deal, which includes the sale of Apache helicopters, Patriot missiles, and F-16 fighter jet parts to Taiwan, China has canceled several high-level visits and military exchanges.

A spokesman for the Chinese Ministry of National Defense called the actions "reckless" and accused the United States of ruining years of Chinese efforts to build mutual trust on military matters. China views U.S. support of Taiwan as meddling in its domestic affairs.

As this AP report points out, though, the deal marks a certain return to normalcy for the U.S.-China-Taiwan military balance. Sales of defensive arms to Taiwan is longstanding U.S. policy. The Bush administration's eagerness to do the deal had been diminished in recent years by the provocative, pro-indepedence stance of former Taiwan President Chen Shui-Bian. But the election of Kuomintang leader Ma Ying-Jeo, who favors greater cooperation with the mainland, has eased tensions.

On the United States' part, this paradoxical game of distancing itself when cross-strait tensions rise and providing military support when cross-strait relations are good recalls the Cold War era. But as Taiwan's economic dependence on the mainland grows, China has probably realized that the most effective reunification strategy will be economic, not military. U.S. leaders may need to reassess their approach accordingly.

General News

A 6.6-magnitude earthquake hit Tibet Monday. At least 10 people are confirmed dead and 191 homes destroyed. Seven hundred rescuers are on the scene.

The central government granted emergency subsidies to dairy farmers last week, who are suffering from a plunge in demand for their products. More arrests have been made in the tainted-milk scandal and regulators have revised the amount of the industrial chemical melamine that is permissible in dairy products.

Chinese citizens celebrated National Day on October 1, marking the 59th anniversary of the founding of the People's Republic of China. The week-long celebrations are a chance to spend time with family, especially for the millions of laborers who work far from home. Many who missed the Olympics also took the chance to visit Beijing.

Politics

Japan's new Prime Minister, Taro Aso, plans to meet with Chinese leaders later this month.

The Chinese Foreign Ministry voiced opposition to the prospect of imprisoned human rights activist Hu Jia receiving the Nobel Peace Prize, to be announced Friday.

Pro-Beijing politician Jasper Tsang Yok-sing has been elected president of the fourth term Legislative Council of the Hong Kong Special Administrative Region.

Economy

The People's Bank of China cut interest rates along with other central banks Wednesday to loosen up lending markets and stimulate economic activity.

Chinese financial firms are snapping up ex-Wall Street professionals.

Science & Environment

After 10 days of filling, the water level behind the Three Gorges Dam has reached a target of 156 meters. During this second phase of the project, the dam's flood control, power generation, and navigation functions are to be realized. The project will be completed in 2009.

A new study finds that HIV transmission in China has moved beyond cases related to drug addicts and blood transfusions. Gay men and prostitutes are increasingly at risk.

China Moment

In a sign that traditional values may be eroding, a young Nanjing woman adamantly refused to give up her seat on a bus to an elderly woman, citing her affiliation with an online "never give up your seat group."

Top Story

Feng Li/Getty Images

The Beijing Olympics roused spectators around the world this summer -- if not with athletic spectacles, then certainly with a few controversial highlights.

But the Paralympics and their inspiring opening ceremonies on Saturday may have outdone anything else that has taken place in China's new arenas. The emotion of the night peaked when the final torch bearer, Hou Bin, a wheelchair-bound competitor in the high jump, pulled himself (and his wheel chair) up a rope to the top level of the stadium.

Thanks in part to these games, Beijing now boasts more wheelchair-accessible facilities than ever before. Until recently, China's disabled lived under a stigma left over from the days of Mao, when the word "disabled" was synonymous with "useless." For the disabled community in China, the 2008 Paralympics, which will run through Sept. 17, have delivered a new sense of pride.

General News

The first orphan of the remaining 88 children left without homes from the May 12 earthquake was adopted. The official death toll from the earthquake is holding fast at 69,116.

Meanwhile, the death toll from Monday's mudslide that struck a mine warehouse in Shanxi province has climbed to 128.

The first Chinese tour group to head to Israel to visit Jerusalem and the Dead Sea will depart later this month, Israel's tourism minister announced. 

Politics

Hong Kong's pro-democracy opposition maintained control in elections on Sept. 7, holding onto their veto power over possible reforms to the territory's constitution by securing 24 of the city legislature's 30 electable seats.

Representatives from China, Japan, and South Korea's nuclear regulatory bodies gathered in Tokyo to discuss ways to share information on nuclear safety.

Economy

Data released by the National Bureau of Statistics Wednesday showed a surplus in August trade, while inflation dropped for a fourth straight month.

Sichuan province has received only $180 billion of the estimated $240 billion still needed to repair and rebuild damage left by the May earthquake, according to the province's vice governor.

Chinese troops were deployed to Hunan province to quell protesters demonstrating in front of government buildings. Those gathered were victims of illegal investment schemes run by legitimate real estate and mining companies.

Environment

The two satellites launched to monitor China's environment in an effort to provide more efficient forecasting have begun to send back data.

Beijing city officials apologized to about 30 dozen environmental protestors who demonstrated against the Gaoantun landfill in August.

China Moment

In an attempt to curb nearsightedness and other eye problems so common among young people, a daily curriculum detailing restrictions on font size, teachers' handwriting, and the amount of homework assigned will be implemented in Beijing schools.

Top Story

JEWEL SAMAD/AFP/Getty Images

China passed the Olympic torch to Britain Sunday, bringing an end to a controversial Olympics marked both by spectacle and suppression. On the sporting field, China achieved its goal of winning the gold medal count. The United States, however, dubbed the games a "missed opportunity" for progress on human rights, and expressed disappointment that the Olympics didn't bring more "openness and tolerance" to China. In the face of diplomatic pressure, Chinese authorities freed eight Americans who had been detained for pro-Tibet demonstrations during the games. 

China now faces uncertainty over its economic future, hoping to avoid the infamous Olympic hangover. 

Politics

President Hu Jintao visited South Korea Monday, agreeing to expand ties between the two countries. 

Authorities blocked, then reinstated, access to iTunes because of an album titled Songs for Tibet.

The Dalai Lama alleged that repression worsened in Tibet during the Olympics. The spiritual leader canceled trips to Mexico and the Dominican Republic because of exhaustion.

Economy

Facing increasing costs, manufacturers are beginning to look outside China.

China overtook the United States as Japan's largest export market. 

Chinese companies are exploring ventures for oil in Iraq and copper in Afghanistan. 

The Bank of China is fighting allegations of supporting terrorism.

Environment

Air quality in Beijing is the best in 10 years, and a top environmental official expects the blue skies to continue.

The Olympics diverted water from thousands of farmers, causing a man-made drought that cost locals in Hebei province their homes and land. 

Taiwan

Prosecutors ordered the son and daughter-in-law of Taiwan's former president, Chen Shui-bian, not to leave the island. The former president, his wife, son, daughter-in-law and brother-in-law are all facing investigation for alleged money laundering. 

General News

Explosions at a chemical plant in Guangxi province killed 20 Wednesday. 

Tropical Storm Nuri showered Shanghai with its heaviest rains in 100 years.

Mike Hewitt/Getty Images

Top Story

Beijing's opening ceremonies lifted off without a hitch Friday, bringing awe to spectators in China and around the world -- or so it seemed. The squeaky-clean ceremonies, however, were too good to be true in some respects, as reports emerged of lip-syncing and computer-generated fake fireworks.

Violence, too, interrupted the first few days of competition. Attacks continued in the western region of Xinjiang, while a Chinese man attacked an American couple with a knife at a popular tourist destination on Saturday, killing the man and wounding his wife before killing himself. The couple was related to an American Olympic volleyball coach.

More Olympics

China’s strategy for focusing on events that award more medals appears to paying off. As of 3:30 pm Wednesday afternoon, China led the gold medal count with 17, while the United States had the most medals overall at 29. Check out Google's nifty map for updates.

Seats at the Olympics are surprisingly empty.

Less surprisingly, so are the "protest pens."

A British journalist was detained Wednesday, covering a protest led by eight U.S. pro-Tibet activists.

The first U.S. president to attend an Olympics on foreign soil, President Bush used his presidential-record fourth visit to prod China on religious freedom, inaugurate a new U.S. embassy in Beijing, and cheer on America's athletes.

Politics

Religous leaders describe a government crackdown. One religious dissident, detained on his way to visit a service with President Bush, has escaped, however.

The Dalai Lama is in France, but will not meet with French President Nicolas Sarkozy.

Economy

Thanks to a rapidly weakening U.S. economy, China is set to become the world's largest manufacturer, four years earlier than predicted.

China's trade surplus grew in July to $25.3 billion, its highest level in eight months and a 4 percent increase from July 2007.

Wholesale prices, however, rose even more, up 10 percent from July 2007.

Overall, inflation is down and growth is "set to stabilize."

Environment

Is China's Olympic cleanup actually bad for global warming?

Taiwan

Taiwan plans to seek "participation," but not a "return" or membership, in the United Nations this fall.

Taiwan's coast guard is holding a former Chinese soldier who swam eight hours across the Taiwan Strait to defect.

Top Story

TEH ENG KOON/AFP/Getty Images

Bombs exploded in two public buses Monday in the southwestern city of Kunming, killing at least two passingers and injuring 14. Officials refuted reports that bizarre text messages had preceded the bombings, and said Tuesday that no evidence had been found linking the bombings to the Beijing Olympics.

On Wednesday, officals tripled the reward for information related to the bombings to 300,000 yuan (around $43,500). Meanwhile, the city of Beijing said it would step up bus-security measures, and Shanghai, which is hosting Olympic soccer matches, announced it will install security cameras on 1,600 buses.

Olympics

Western TV networks are pushing back agianst constraints on Olympic coverage.

Hotels in Beijing are slashing prices as the anticipated tourist onslaught fails to materialize.

Some U.S. Olympians may wear masks in Beijing to protect their lungs from pollution, much to the chagrin of their hosts.

The opening ceremonies will employ "green fireworks" designed to limit pollution.

Guess who's not invited?

Politics

Officials will allow approved protests in designated city parks during the Olympics; the crackdown on Internet dissent, however, continues. Entertainers deemed a threat to China's sovereignty are no longer welcome, either.

China and Russia ended a decades-long border dispute.

Although 86 percent of Chinese are happy with their country's overall direction, more than a third see Japan and the United States as enemies.

A Tibetan living in Beijing is suing the Chinese government after being denied a passport for three years.

Economy

One new report says China's economy has averted the threat of overheating, while another argues the government needs to temper "hot money" inflows to stave off inflation and stabilize markets.

U.S. companies are keeping a wary eye on a new Chinese antitrust law.

Other News

A coal mine flooded in southern China, trapping 36 miners and killing at least seven.

China has more smokers than the United States has people. Unsurprisingly, China's anti-smoking campaign is not having the desired effect.

Top Story

Oded Balilty-Pool/GettyImages

U.S. Secretary of State Condoleezza Rice met with Chinese President Hu Jintao and Premier Wen Jiabao (he's the guy on the right) in Beijing over the weekend, discussing human rights issues including Internet freedoms and the political crisis in Zimbabwe. Chinese officials were predicitably cool on imposing sanctions on Zimbabwe, favoring instead negotiations between President Robert Mugabe and the opposition.

Meanwhile, talks continued in Tokyo on Wednesday between Chinese officals and envoys of the Dalai Lama. The Tibetan spiritual leader expressed hope for progess, but the Communist party chief in Tibet again blamed the Dalai Lama and his supporters for the deadly rioting there in March. A commentator in Xinhua expressed the contention (hope?) that the West would lose interest in the Dalai Lama after the Olympics.

Olympics

Traditional Chinese medicines may contain banned substances, a potential source of trouble for China's Olympic athletes.

Local officials are stepping up efforts to combat an algae bloom that may impede Olympic competition, including sailing.

Some 33,000 people are mobilizing to combat a plague of locusts in Inner Mongolia, hoping to avert a disastrous migration to Beijing next month.

Politics

Could the city of Shenzen, site of China's first forays into capitalism, be a testing ground for democracy? Not quite, but The Washington Post reports that plans being drafted by local authorities there could provide the blueprint for future political liberalization.

A group of human rights lawyers were detained and placed under house arrest on Sunday to prevent them from meeting two U.S. congressmen in Beijing. The congressmen responded Tuesday by calling for President Bush to skip the Olympics. China's foreign ministry accused the two of "arrogance."

Tens of thousands marched peacefully for democracy in Hong Kong Tuesday, the 11th anniversary of the handover back to China.

Environment and Economy

A new report says that Beijing is not conserving enough water on the eve of the Olympics, exacerbating a crisis.

Chinese and Indian startups in the wind power industry may face an uphill battle, battling a steep learning curve, high stakes, and already established European competition.

Earthquake

China's earthquake response may have revealed some flaws in its military capability.

On Monday, officials unveiled a plan to finance earthquake reconstruction.

Security forces are cracking down on parents of earthquake victims, who are demanding an investigation into why so many schools collapsed in the May disaster.

Taiwan

As direct weekend flights between Taiwan and the mainland are set to start this week, Taiwan is lifting some restrictions on Chinese currency exchange.

Three defectors from mainland China are on a hunger strike demanding Taiwanese resident status.

Earthquake 

STR/AFP/Getty Images

Tangjiashan Lake, created by the May 12 earthquake, is dangerously close to spilling over as 250,000 people have been evacuated downstream and 1.3 million remain at risk. An engineering base of operations next to the dam houses personnel racing to avert a catastrophic failure (video). 

Police surrounded a protest against school-construction quality on Tuesday and dragged away parents and journalists.

Politics 

The Beijing Olympic Organizing Committee posted rules for foreigners during their visits to the games (translated). Big no-nos include trafficking of state secrets, sleeping in public, displaying insulting slogans or banners at events, carrying guns, or burning the Chinese flag. (original Chinese) 

Starting tomorrow, tourists will be able to see the eight giant pandas at the Beijing Zoo recently flown in from Chengdu. Meanwhile, China and Taiwan may enter emergency talks on their panda deal as political deadlock has the island’s promised pair approaching an age above which they'll be able to successfully adapt to a new environment.

Economy

The earthquake should have a minimal effect on the economy as only 1 percent of the population was affected and the area was mostly farmland. The quake did damage hydro plants, however, so power supplies may be tight this summer.

Fuel shortages are growing but raising China's artificially low prices could worsen inflation.

The manager of China's $200 billion sovereign wealth fund tried to quell the West's fears about politically motivated acquisitions, saying, "Our government has never been transparent for 5,000 years… Now we are told we need to be transparent and we are trying."

China is opening a pilot coal-to-liquid plant in Inner Mongolia that will turn coal into oil. If it takes off, Inner Mongolia will try and convert half of its coal output to liquid fuel by 2010.

In a possible sign of improved pharmaceutical-industry scrutiny, the government responded swiftly to the deaths of six hospital patients from possibly contaminated immunoglobulin in a Jiangxi province hospital by ordering all drugs from the same batch impounded for testing.

Taiwan

A group of representatives from over 30 Chinese travel companies will visit Taiwan later this month in preparation for opening up the Taiwan-mainland tourism market. The first group of tourists on weekend charter flights are slated to arrive July 4.

Upon returning from the mainland, KMT Chairman Wu Poh-hsiung told Taiwan's President Ma Ying-jeou that China was unlikely to fire any missiles at Taiwan, but Ma's defense minister remains wary.

Faced with an organ shortfall, Taipei is offering free memorial services and public citations of praise to city residents who donate their heart, liver, kidney, and pancreas and may extend the measure to include skin, bones, and corneas.

Analysis

Reuters columnist Wei Gu, in "China's fuel subsidy costs the world," argues that China's fuel prices, about 61 percent of those in the United States, need to get in touch with reality.

In "The Family Way," Josh Kurlantzick calls for a phasing out of the one-child policy.

AFP/AFP/Getty Images

Earthquake

Last Monday's Sichuan earthquake was the worst natural disaster in China in 30 years. An estimated 5 million people were left homeless from the quake and today marked the end of an official three day mourning period for those lost, now numbering above 40,000. Though reports are still coming in of some rescues, the end of the mourning period marks a shift of national priorities away from the rescue effort.

Rescue stories include one of western tourists being evacuated from a panda research center by heroic staff, and another of a Chinese couple trapped in rubble for 28 hours who were forced to take turns breathing, saying "It was more terrifying than facing the god of death."

Politics

The state is re-tightening the reins on the media after relatively open reporting on the disaster.  As for criticism of officials and building practices, a Shanghai newspaper editor said it’s still too early.

Private charity is on the rise in China to help the quake victims: “The public outpouring is so overwhelming that analysts are debating whether it will create political aftershocks and place pressure on China's authoritarian state to allow more space for civil society,” the International Herald Tribune reports.

Growing lore about Chinese Prime Minister Wen Jiabao's softspot for the common people includes an incident where he allegedly slammed the phone down on a general after commanding him to do whatever it takes to save quake victims. Technically he doesn't even command the military which is taken as evidence of a passion that is stirring more than a few to call him "Grandpa Wen." 

In an "unprecedented step," U.S. aid to China included the first-ever disclosure of satellite imagery to China by the National Geospatial Intelligence Agency. The imagery of Chinese infrastructure will allow China to better assess the state of its reservoirs, roads, and bridges. Japan also released satellite imagery (translated) that shows the dramatic devastation from the quake.

Ma Ying-jeou took power as Taiwan's president on Tuesday, saying Taiwan and China "can use this rare historical opportunity. Let's open a new page of peace and prosperity." As a first step, China has invited Ma's KMT party chairman Wu Poh-hsiung for a six day visit to the mainland starting on Monday during which he will meet with Chinese President Hu Jintao.

The pandas from Wolong and Chengdu appear to be fine, though two are still missing and some are still acting nervous. Eight pandas will make a trip to Beijing later this week to go on display at the Olympics.

Economy

Chinese government agencies have been asked to cut spending by 5% this year to create a $10 billion earthquake reconstruction fund. Ways to cut back include a freeze on approval of new government buildings, strict control of new car purchases on the part of officials, and less spending on dinners, according to Prime Minister Wen.

Total losses from the earthquake to Chinese companies are estimated at $9.5 billion, about $4.3 billion of which is state-owned. The Agricultural Bank of China, the leading rural lender, expects an increase in $850 million of bad loans, and PetroChina, China’s largest oil company in terms of assets, placed damages at $255 million. The government has ordered price freezes in the disaster zone, but inflationary pressure is being felt in surrounding provinces.

Quake reconstruction could lead to a shift toward investment and away from consumption. Analysts see some parallels in China’s ambitious plans to rebuild and the Kobe earthquake in Japan which likely contributed to a reversal in the structural decline of investment in the 1990s.

Analysis

NPR looks more at the “unprecedented” free media reporting environment in China surrounding the earthquake coverage including the increased professionalism of journalists.

The Carnegie Endowment’s China program director, Douglas H. Paal, talks to BBC about the political implications of the earthquake. On the tension between addressing public outcry and avoiding political fallout, Paal says “finding a balance point is going to be a very tough challenge for [the Chinese leadership] on such a highly emotional issue.”

Daniel Bell, a teacher of political theory at Tsinghua University, describes his experiences in the classroom after the earthquake in an op-ed for the New York Times.

Shizuo Kambayashi/Pool/Getty Images

Politics

Chinese President Hu Jintao is visiting Japan for a diplomatic summit on Sino-Japanese relations.  Some are optimistic that Hu and Japanese Prime Minister Yasuo Fukuda can settle claims on undersea gas resources in the East China Sea by summer. The two leaders will also engage in some literal ping-pong diplomacy.

It’s still unclear what is causing the high number of hand, foot, and mouth disease cases in Anhui province. Almost 16,000 cases have been reported, including 28 fatalities likely linked to a coupling with the virus EV71. Government officials say that the high fatalities are not evidence of a new strain.  Infections in Singapore and Vietnam are also much higher than normal this year. The Chinese government plans to step up public hygiene efforts to combat the spread of infectious disease this summer.

The Chinese State Food and Drug Administration, charged with investigating the contamination of the blood-thinner Heparin, has accused U.S. drug company Baxter of being unhelpful in the investigation. It also maintains that the link between the drug and the deaths in the United States has not yet been proven since other countries using similar substances reported no such fatal allergic reactions.

China acknowledged that changes in visa restrictions are taking place ahead of this summer’s Olympic Games. However, the Foreign Ministry insists that the changes are “according to the practice of the past Olympics and usual international practice.” Fewer (if any) multiple entry visas will be issued and some travelers may need letters of invitation, and proof of hotel accommodations and return air tickets. Previously, the ministry had denied that any changes were planned.

Concerned about overspending on student subsidies, the Chinese government is limiting the growth of doctoral programs to less than two percent annually in favor of professional degree training programs. China is the world’s leader in turning out phD's with an estimated 60,000 in 2007, yet over half of graduating candidates end up in government rather than academia.

Economy

The Hong Kong stock market is looking abroad for investment growth and hoping to attract sovereign wealth funds. Government intervention in the Shanghai market is hurting its international reputation.

Forget poverty assistance programs, relocation is the best way to help drought-stricken farmers in Ningxia Hui Autonomous Region in northwestern China, said a local official. Around 206,000 people will be relocated over the next five years to irrigated and suburban areas along the Yellow River that can better support them at a cost of $406 million.   

China’s household spending power will surpass that of Britain’s by 2017, putting it third in the world behind the U.S. and Japan according to a forecast released by Barclay’s and the Economist Intelligence Unit today. Full report (PDF).

Taiwan

Three Taiwanese government officials have resigned as investigators searched their homes and offices for clues in the case of the missing $30 million in “diplomatic aid” to Papau New Guinea. There is a middleman on the run according to the International Herald Tribune.  

Analysis

The American Institute in Taiwan held a video conference panel discussion on Tuesday about the U.S.-Taiwan relationship in light of coming political changes in both countries. Speakers included Robert G. Sutter of Georgetown University, Alan D. Romberg of the Stimson Center, and Bonnie Glaser of CSIS. The Taipei Times reports on the event saying that experts don’t expect big changes.

Jamil Anderlini of the Financial Times looks at the latest incarnation of China’s fenqing, or hyper-nationalistic “angry youth.”

Adidas CEO Herbert Hainer sits down with Der Spiegel to talk about the role of his company’s gear in the torch relay saying, “I don’t have a guilty conscience,” and stressing the company’s commitment to sports, not politics. (Hat tip: The American's Duncan Currie.)  

This week's China moment

It took forty workers 48 hours to complete the world's largest Chinese flag. The flag is roughly 200 x 300 feet (88.88 meters- note the lucky eights). The banner was so big, it needed a last-minute switch to a larger-class airplane as it left Beijing. It will follow the torch relay around the country and go on display in Beijing a day before the Olympic Games. (Hat tip: Passport reader Andrew Schorr)

ADEK BERRY/AFP/Getty Images

Politics

Next stop for the Olympic torch? Canberra, Australia. Protests are already underway as two people were arrested for trying to unfurl a banner on the Sydney Harbour bridge. People also beamed a laser message on the bridge saying "Don't Torch Tibet." Needless to say, security will be high for the relay leg tomorrow.

French supermarket chain Carrefour's chairman Jose Luis Duran told Xinhua his company would support the Olympics and that protesters have ulterior motives. He also denied supporting the Dalai Lama. The Chinese government praised the chain the same day as the interview.

The Tibet crackdown is still having some aftershocks, as a prominent Tibetan broadcaster/performer was detained.

The Financial Times is launching a Chinese-language publication ahead of the Olympic Games geared at China's growing stock of professionals. Playboy is also expected to be granted circulation for a month "to meet the demand of overseas visitors during the Olympics," according to Reuters.

Economy

China will continue rice exports, which may help alleviate the global food crisis. China produces almost a third of the world's rice.

In China's continued economic efforts in Africa, China Railway Group will embark on a $2.9 billion joint venture with Sinohydro Corp in a copper and cobalt mine in the Democratic Republic of Congo. The deal, which is awaiting the DRC government's approval, includes a provision to limit Chinese workers to 20 percent of the total in an effort to curb local resentment.

Nationalistic fervor is hitting the racks as new T-shirts come out with slogans like "Go China!" and "Tibet WAS, IS, and ALWAYS will be a party of China!" Chinese officials say Olympic ticket sales have not been affected by the torch relay protests.

Although China claims "great progress" on intellectual property enforcement, the EU announced it will ask China to step up efforts ahead of the Olympics. According to the OECD, the global fake goods market is around $200 billion a year or 2 percent of the world's trade, with much of it originating in China.

Taiwan

President-elect Ma Ying-jeou wants to implement tax incentives to lure investment to Taiwan, especially in technology. He also plans to make it a priority to remove the 40 percent cap on mainland investment designed to make Taiwanese multinationals more competitive (though HSBC analysts predict the move won't help since production prices in China are soaring). Also, Chinese banks and insurance firms will be allowed to set up offices in Taiwan as soon as late May.

Taiwan is investing almost $1 billion in infrastructure to prepare for the influx of mainland tourists that Ma's reforms are expected to bring. According to Reuters, 50 million mainland Chinese have expressed interest in visiting the island.

The U.S. is requesting $170 million for a new American Institute in Taiwan compound (the unofficial embassy) that may include a Marine barracks.

Analysis

In a piece for the Financial Times, Coca-cola Chief Executive Neville Isdell talks about the company's role in politics relating to Darfur and the Olympics.

U.S. policy in the Pacific is weakening, according to Michael Auslin of the American Enterprise Institute. And Philip Levy has a new working paper that discusses the potential for democracy in China in the wake of changes in the economy, technology, and the rule of law.

For more on the controversy surrounding China's presence in Africa, check out Serge Michel's "When China Met Africa" in the new issue of FP (subscribers only).