In This Edition

 

Chinese deputy foreign minister Zhang Zhijun says China will take resolute measures in response to any moves that challenge the country's bottom line on sovereignty.

 

Former Italian Prime Minister Silvio Berlusconi says he will stay in politics to reform Italy's justice system after being convicted of tax fraud.

 

Overall economic recovery in Europe still faces difficulty a year after an agreement reached to fight the eurozone debt crisis.

 

And the U.S. northeast braces for Hurricane Sandy as the storm may morph into a "super storm."

 

 

Hot Issue Reports

 

China Stresses no Concession on Territorial Sovereignty

Chinese deputy foreign minister Zhang Zhijun said China will take resolute measures in response to any moves that challenge the country's bottom line on sovereignty.

 

In an interview with Chinese and western media outlets in Beijing on Friday, Zhang said Japanese government's move to purchase the Chinese Diaoyu Islands last month has sparked the most severe frictions on China-Japan relations.

 

He urged Japan to abandon any illusion and face up to reality, sincerely correct its mistake with credible steps so as to properly handle the current problem.

 

"China has always called for solving the Diaoyu Islands disputes through peaceful negotiation. China will never make troubles but never be scared of any troubles. We want to live in friendship with all countries including Japan, but we have to uphold our principles and bottom line. We will never concede on territorial sovereignty. We do not want to see the situation spin out of control. But this, however, is not to be decided only by the Chinese side."

 

Zhang Zhijun also stressed that China reserves its legal rights to respond forcefully against any provocation and to remove disturbance and obstacles to ensure a peaceful development environment.

 

He added the "island purchase" farce was masterminded by Japan's right-wing forces, which would pose threat to regional stability.

 

"The dangerous political tendency of the Japanese right-wing forces had once plunged Asia into a major disaster. Such forces, if not stopped but used, if encouraged and indulged out of domestic political needs, will become further emboldened and lead Japan further down a dangerous path."

 

China and Japan have maintained contact on the issue of Diaoyu Islands through various channels and in different forms. The two sides started vice foreign ministerial-level consultations on the issue in Beijing in late September.

 

Berlusconi Says He Feels Compelled to Stay in Politics

Former Italian Prime Minister Silvio Berlusconi, who announced this week he wouldn't run in spring elections, pulled an about face Saturday and said he felt compelled to stay in politics to reform Italy's justice system after being convicted of tax fraud.

 

Berlusconi's comments came hours after a Milan court sentenced him to four years in prison and barred him from public office for five years after convicting him in a decade-old case involving the purchase of TV rights of US films for his media empire.

 

But Berlusconi denounced the judges as politicised, as he has done in his many legal wranglings with Italian magistrates ever since he entered politics in 1994.

 

He told his private Mediaset television Saturday that the verdict would have consequences.

 

"I feel obliged to stay in the political arena to reform the justice system, to prevent what has happened to me from happening to other citizens."

 

The 76-year-old media mogul is expected to remain free until the appeals process is exhausted.

 

Berlusconi has wavered about his political future in the year since he was forced from office amid sex scandals and his inability to reassure financial markets that he could push through the economic reforms needed to ward off a Greek-style debt crisis.

 

Expert: EU Economic Recovery Remains Sluggish after One-Year Struggle

Overall economic recovery in Europe is still facing difficulty despite an agreement reached last year to fight the eurozone debt crisis.

 

Unemployment in Spain hit a record 25 percent in the third quarter of this year. The situation in Greece is even worse.

 

Little has improved one year after the bailout fund; the recapitalization of banks was ordered and private investors were forced to accept a 50-percent write-off on their Greek bonds.

 

Janis Emmanouilidis, Senior Policy Analyst with the European Policy Center, said the fear of a Euro-zone break-up has been dispelled since the European Central Bank promised to be a lender of last resort.

 

"There are different things that have happened over the last weeks, months and year, which makes one more confident that, on a systemic level, the eurozone crisis seems to be in a better situation. The euro seems not to be threatened any longer by an implosion, as maybe it was before this summer".

 

But Emmanouilidis warned there has still been no clear answer to Spanish and Greek problems.

 

Also, many Greeks have decided to move from their home country to escape the financial mess.

 

Despite last year's massive debt write-down, Greece remains trapped in a vicious cycle of a deepening recession. Unemployment could reach 29 percent next year. Repeated salary cuts have left people without enough money to even pay their taxes.

 

Laszlo Andor, European Commissioner for Employment and Social Affairs, predicts the economic and social crisis will get worse and not better in the near future.

 

US Northeast Braces for Hurricane Sandy

The U.S. northeast braced for Hurricane Sandy on Saturday as the storm continued to make its way toward the coast.

 

New Jersey governor Chris Christie formally declared a state of emergency in anticipation of the hurricane, which had killed at least 41 people in the Caribbean.

 

"I have issued today a mandatory evacuation for Sunday at 4:00 pm for the barrier islands, from Sandy Hook South to Cape May. In Atlantic City, I have ordered that the casinos be evacuated no later than 4:00 pm on Sunday."

 

He emphasized that dangerous weather conditions could last for several days and that everyone needed to make sure they were prepared.

 

Sandy has been dubbed "Frankenstorm" by some weather watchers because it will combine elements of a tropical cyclone and a winter storm.

 

As it merges with an Arctic air mass high over the eastern U.S., forecast models show it will have all the ingredients necessary to morph into a "super storm."

 

Coastal flooding could pose a major threat, especially in low-lying areas like New York City.

 

Forecasters say Sandy could make landfall on Monday night or Tuesday somewhere between North Carolina and southern New England on its current projected track.

 

Meanwhile, in the final days ahead of the U.S. presidential election, Sandy has presented a challenge to the campaigns of President Barack Obama and his Republican challenger Mitt Romney.

 

Romney canceled a rally scheduled for Sunday evening in Virginia Beach, Virginia, while Obama's re-election campaign announced that Vice President Joe Biden had also canceled a Saturday trip to that city.

 

Bad Loans could Weigh on China's Banks: Analysts

Some analysts say bad loans could put pressure on China's banking system in the future despite recent upbeat earnings reports announced by the country's leading banks.

 

Bank of China, the country's fourth-largest state-owned bank, posted over 10 percent profit growth during the first three quarters of this year.

 

The Agricultural Bank of China recorded a nearly 20 percent rise in its net profits during the same period.

 

Jin Lin, assistant director of Shanghai-based Orient Securities Research Institute, says Chinese banks should keep a wary eye on the issue of bad loans.

 

"The pressure from bad loans is bigger than in the previous two cycles. We have analyzed the report from the first half of the year, and the quality of loans right now is at its worst in ten years."

 

Economists have warned that some of the loans handed out under China's massive stimulus package in 2008-2009 might turn bad amid a slowing economy.

 

China's economy has slowed for the seventh straight quarter, growing 7.4 percent year-on-year in the third quarter of 2012.

 

China's Online Retail Giant 360buy Taps into Overseas Market

China's largest online retailer 360buy.com has started selling directly to overseas buyers with the fall of its domestic profit margins.

 

The privately-owned firm launched its English-language website en.360buy.com last week, targeting consumers in the United States, Europe and other western markets. It offers 400,000 products including apparel, Chinese-language books and electronic appliances.

 

Lu Chao, marketing director for 360buy's overseas department said the company aims to expand its overseas market.

 

"The majority of our products are manufactured and purchased in China, and then sold to overseas consumers. Of course, we are considering shipping to more markets. And we also plan to have web pages in more languages, including French, Portuguese, and Italian, in order to subdivide our customers and to improve the user experience."

 

According to Jing Linbo, vice president of National Academy of Economic Strategy, Chinese Academy of Social Sciences, 360buy's move shows a world recognition of Chinese online retailers.

 

"The expansion will help 360buy's financing and future listing, integrate its domestic and overseas markets, and eventually realize e-commerce without borders."

 

China's e-commerce industry grew almost 10 times to reach 125 billion US dollars in transaction volume last year.

 

Auto Industry to Benefit from the China India Co-op Enhancing

The India Show is kicking off at the China International Auto Parts Expo.

 

More than 80 Indian companies will be on hand in the hope of tapping opportunities to the Chinese auto market. This year, technological innovation and maintenance are catching the eyes of those in attendance.

 

CRI's Wei Tong takes a close look.

 

Bilateral trade between China and India came in at 74 billion US dollars last year.

 

The two emerging economies are setting ambitious goals for the immediate future and have given their respective automobile industries the floor in order to enhance business ties.

 

Dr. Jaishankar, Indian Ambassador to China stresses the importance of enhancing such ties now.

 

"If the BRIC's economy is slowing down that doesn't mean there's no case for India and China to do business. In fact, there are cases we should do more business with each other because when economies are slowing down it is more important to lower cost and more important to be efficient. In the last 3 years, I see Chinese investment interest in India growing not coming down."

 

Although the EU and the US remain China's major trading partners, India ranks as China's seventh largest export destination and ninth largest import destination.

Mr. Gopalakrishnan, President of the Confederation of Indian Industry, says that more attention must be paid towards opening up more opportunities and combining the two countries' competitive edges.

 

"China and India represent one third of the population and growing economic power, the per capita income is growing in both countries. As it grows the consumption also grows. And that's the opportunity. Now how can we make it into a win-win relationship We can make this consumption model better. For example when you look at a car, we should be investing in energy efficient cars, alternate fuels and taking a leapfrog in technology. And this is again where China and India can work together. Because China has significant knowledge in the manufacturing, design on the hardware side and India has the knowledge on the software side."

 

Liao Xin, Head of Marketing at Infosys Technologies agrees on the trend.

 

"This isn't an option. You have to integrate IT with the manufacturing, the hardware. If you consider IT as the software, you have to combine. There's no use for you to have a computer without an application, the same. Nowadays, every car is like a moving computer."

 

The current auto parts expo will provide a platform through which companies can interact and explore new areas of cooperation.

 

Liao Xin is confident on the outlook of the auto parts industry.

 

"It's a huge market. Auto parts are not just a simple concept or it is just not the one component. Look at how many parts a car has. Basically a car is comprised with all the auto parts. Most car companies nowadays are just assembly lines. They assemble things sourced from different channels, some of them from say Germany, some of them from within China or India."

 

For CRI, This is Wei Tong.

 

China, South Korea Discuss Phytochemicals' Role in Human Health

Phytonutrients provide certain medical and health benefits, including the prevention of certain diseases. This topic and more have become the center of discussions at an international phytonutrient forum held recently in Beijing. CRI's XYee has more.

 

The study of phytonutrients's role in the prevention of chronic diseases is very active in China.

 

Attending the 2nd China and South Korea Joint International Phytonutrient Symposium on Friday, Prof. Yang Yuexin, a nutrition expert at the Chinese Center for Disease Control and Prevention, explains the achievements made by Chinese scientists in this field.

 

"We conducted a lot of research. For example, Quercetin plays a certain role in antioxidant protection and the prevention of cardiovascular disease, as well as anthocyanin's function in antioxidant protection. Progress has been made in the research of these phytonutrients."

 

It has been shown through a number of surveys that phytonutrients in vegetables and fruits play a crucial role in tumor reduction and cardiovascular diseases.

 

Keith Randolph, an American scientist with Nutrilite Health Institute, believes the discovery of phytonutrients is as significant as the discovery of antibiotics.

 

He explains some added benefits of phytonutrients.

 

"We also understand now that there are specific phytonutrients that can engage with your body's own antioxidant protective mechanisms, much like how a lock and key kind of fit."

 

The symposium drew over 200 food experts from South Korea, China, Japan and Canada. In addition, students majoring in nutrition also attended the event.

 

Zhou Jinwei, a postgraduate who studies the science of nutrition and food safety in Hunan Agricultural University, said that his personal knowledge wasn't advanced much but that international experts seem to be moving forward in their study of phytochemicals.

 

"Our scientists study phytochemical's impact on human health via an assessment on the physiological index. I feel that international scholars carried out a deeper level of research that enables them to explain a certain type of phytochemical health benefits from the perspective of molecular mechanisms."

 

Prof. Yang Yuexin said that Chinese scientists have been focusing on more than 20 phytochemicals and are on their way to making criteria for the level of proper intake. Their work would place China at a leading position in the world.

 

She added that more work should be done to ensure that their research will truly bring benefits to consumers.

 

"The general public are still unaware of the level of phytochemicals they should take to keep healthy. Also, we, as scientists, should work hard to gain broad knowledge on the essence of phytochemicals, which vary remarkably. It is also a process for general consumers to learn about phytochemicals, and only when they understand what their food is can they stay healthy."

 

For CRI, I'm XYee.

 

Xinhua: Wrong Choice for Japan to Stage Any Provocation against China

 

The Japanese government has yet to confirm media reports that Tokyo has decided to shelve an island recapture military drill that was apparently intended to be against China.

The Japanese media previously said that the US and Japan would hold the drill on Irisunajima Island in Okinawa Prefecture early next month.

 

A commentary by China's Xinhua News Agency says the lack of a clear position from Tokyo on the issue threatens to complicate the current tensions between China and Japan.

 

The two neighbors have been locked in a bitter territorial row over the Diaoyu Islands in the East China Sea since September when Tokyo decided to "buy" and "nationalize" the islands.

 

The Xinhua commentary says Tokyo's opaque stance over the reported military drill is quite like hiding a ticking time bomb rather than defusing the explosive device right away.

Also, the article says it's worth noticing that Japan's politics are further turning right, amid heightened bilateral tensions.

 

It notes that two Japanese serving ministers, along with lawmakers, visited the Yasukuni Shrine, which honors 14 convicted Class A Second World War criminals.

 

Xinhua says the visits, first by serving ministers of the Democratic cabinet, sound an alarm that Japanese militarism is lurking and could stage a comeback if the current trend goes unchecked.

 

The article says now it's urgent for Tokyo to correct its wrongdoings and move to repair strained relations with its neighbors.

 

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China Daily: FDI Confidence Remains in China

 

A report released by the United Nations Conference on Trade and Development showed that foreign direct investment, or FDI, in China dropped in September for the 10th time in the past 11 months, despite China replacing the United States as the world's top destination for FDI in the first half of this year.

 

An editorial in the China Daily newspaper says the intensified worries over China's growth prospects due to a dropping FDI might seem justified. However, it is unjustified to conclude that China is no longer attractive to overseas investors just based on these facts.

 

The article stressed that it is noteworthy that, at a time when the global FDI is being squeezed by uncertainties ranging from a prolonged European debt crisis to a looming US fiscal cliff, China is proving the most attractive place for investment.

 

The editorial said foreign companies are taking a risk when they decide to adjust their investment plans according to politically charged calculations rather than long-term economic fundamentals and business opportunities.

 

It points out that, what really makes China the most attractive destination for FDI, is not how well the Chinese economy has performed in the past, but the deeds and determination to face up squarely to the challenges of economic transformation.