Drill, Baby, Drill

A JH-7 fighter jet of the Chinese Air Force takes part in a joint air exercise during the ongoing China-Russia joint naval drills on August 24. Four fighter jets， two J-10 and two JH-7， dispatched by the Chinese Air Force， took off from an airport in northeast China and returned after completing the drill.

Explosion Probe

Chinas top procuratorate accused 11 officials and port executives of neglecting management of dangerous chemicals storage and transportation in the Tianjin Port， where explosions had killed at least 145 people as of August 27 and devastated the port area.

The officials from various government departments， including Tianjin local transportation management authorities， work safety regulatory agencies， land resources authorities， Tianjin local customs office and a stateowned port company， were probed for“dereliction of duty” and “abuse of power，” said a statement from the Supreme Peoples Procuratorate on Thursday.

The prosecuted officials included Wu Dai， head of Tianjin Municipal Transportation Commission， and Zheng Qingyue， President of Tianjin Port Holdings Co. Ltd.

The police have also detained 12 suspects from Tianjin Ruihai International Logistics Co. Ltd.， owner of the exploded warehouse that allegedly handled dangerous chemicals.

The company and the detainees were suspected of illegally storing dangerous materials， according to police authorities. The detainees included Board Chairman Yu Xuewei， Vice Board Chairman Dong Shexuan and three deputy general managers.

The police also announced the investigation of Tianjin Zhongbin Haisheng， a company suspected of illegally helping Ruihai acquire safety evaluation papers.

Education Funds

Chinas central treasury has allocated 19 billion yuan （$2.97 billion） to support preschool and high school education， especially in rural areas， the Ministry of Finance said on August 24.

The funds will be split， with 15 billion yuan （$2.34 billion） spent on guiding and encouraging local governments to improve preschool education resources， while 4 billion yuan （$625 million） will be used to upgrade facilities in high schools in impoverished regions， the ministry said.

The moves are meant to better allocate education resources and bridge the gap between urban and rural education.

A recent survey released by the UN Childrens Fund showed two thirds of Chinas 90 million children aged 6 and under still live in rural areas and receive insufficient early childhood education.

During the 2011-15 period， the Central Government allocated a total of 71.93 billion yuan （$11.24 billion） to support preschool education.

Deep-Sea Vehicle

The first phase of trials on Chinas independently developed autonomous underwater vehicle （AUV） in the South China Sea has finished， the ocean resource authority announced on August 21.

The deep-sea mining exploration vehicle， which is designed to reach depths of up to 4，500 meters， recorded a maximum depth of 4，446 meters over 15 dives spanning 35 days， according to a statement released by the General Office of the China Ocean Mineral Resources R&D Association.

Under the supervision of the State Oceanic Administration， the association was set up in 1990 to promote deep-sea development and exploration.

With the ability to detect hydrothermal fluids， as well as photograph and survey terrain and relief， the vehicle will explore sea areas rich in sulfide deposits that contain various metals.

The vehicle will undergo its secondand third-phase trials in the southwest Indian Ocean in November.

Gas in Xinjiang

Since its operation in 2013， a pipeline has supplied 1.6 billion cubic meters of natural gas to 4 million urban and rural people of different ethnic groups in 42 counties or cities in the south of Xinjiang Uygur Autonomous Region， said Li Huaqi， Deputy Planning Manager of China National Petroleum Corp.

The 2，424-km pipeline supplies 1.7 million cubic meters of gas per day on average and the daily volume will reach 3 million cubic meters in winter.

Boasting three major gas basins—Tarim， Junggar and Tuha—Xinjiang began gas exploitation in 2004. The region is expected to produce 30 billion cubic meters of natural gas this year.

Church Donations

Christian associations in China donated 1 million yuan （$156，200） to the China Foundation for Disabled Persons on August 25.

The donation was made by the National Committee of the Three-Self Patriotic Movement of the Protestant Churches in China （TSPM） and the China Christian Council （CCC）. It is part of a public welfare program launched by TSPM and CCC. They will also distribute equipment such as wheelchairs in places such as Jilin Province and Chongqing Municipality.

The money will be used to build centers for the disabled in places including Henan and Hubei provinces. The centers will provide training and other services.

No Driving Restrictions

The newest draft of Chinas air pollution law no longer contains clauses allowing local governments to restrict or ban vehicles to fight air pollution， the top legislature said on August 24.

The law is being deliberated by the Standing Committee of the National Peoples Congress.

The first draft of the Air Pollution Control Law allowed local governments to restrict or ban vehicles in specified areas and during specified times. The second draft added a clause that said restrictions should consider public opinion.

The clauses were deleted after lawmakers and members of the public argued that the restrictions “are related to” citizens rights to property， and the law has sparked a “huge public reaction.”In a bid to control smog， Chinese cities have begun to restrict use of vehicles. In Beijing， vehicles are restricted one out of five weekdays based upon the last digits of their license plates.

ICHS in Asia

The 22nd International Congress of Historical Sciences （ICHS） kicks off in Jinan， Shandong Province， on August 23， marking the first time the congress has been held in Asia.

The ICHS， known as the most influential academic event on the subject， enjoys a reputation as the “Olympics of Historical Sciences.”

Young Guides

Pupils act as cicerones at Dazhao Temple in Hohhot， capital of north Chinas Inner Mongolia Autonomous Region， on August 26.

A primary school in Hohhot founded a cicerone group in September 2002， which encourages pupils to introduce the history and culture of their hometown to visitors during summer holidays.

Lake Study

Serling Tso Lake， the largest lake in southwest Chinas Tibet Autonomous Region， is being surveyed by Yangtze River Water Resources Commissions Hydrological Bureau and Tibet Regional Hydrological Bureau， sources with the commission said on August 23.

This is the first comprehensive field study on the lake. Basic information， including the lakes depth as well as its underwater and bank terrain will be recorded.

With an altitude of over 4，530 meters， Serling Tso Lake reportedly replaced Namtso as the largest lake in Tibet in 2014 as melting glaciers and increased rain resulted in its rapid expansion.

It measured 2，391 square km in June 2014.

Pension Investment

On August 23， the State Council， Chinas cabinet， published a set of guidelines on investment operations of the countrys pension fund， giving it access to more diversified and riskier products.

The document， released after soliciting public feedback， allows the pension fund to be invested in new destinations including domestic stock markets but restricts the maximum proportion of investments in stocks and equities to 30 percent of total net assets.

The fund will also be used to participate in major projects and purchase shares in state-owned enterprises to gain long-term yields.

Chinas pension fund， which accounts for roughly 90 percent of the countrys total social security fund pool， had net assets of 3.5 trillion yuan （$547 billion） at the end of 2014.

The latest move is intended to create more value for the massive fund， which was previously parked in banks or invested in treasury bonds with low yields， a condition that has long spurred calls for change as China faces a huge challenge in caring for its increasing elderly population.

While pushing for diversified investment， the State Council stressed an“active and cautious” approach in the process. “The management of the funds must prioritize safety and firmly control risks，” read a statement from the State Council.

Financial Leasing

China on August 26 mapped out measures to accelerate development of financial leasing and make it better serve the real economy.

Accelerating development of financial leasing could ease financing difficulty and financing cost， spur investment in equipment and promote industrial upgrade， said a statement released after a State Council Executive Meeting presided over by Premier Li Keqiang.

The meeting demanded less red tape， including no minimum capital threshold for financial leasing companies to establish subsidiaries and easier procedures for leasing equipment such as ships， farming machinery， medical devices and aircraft.

Development of leasing businesses involving high-end equipment imports， clean energy and peoples livelihood should be sped up， the statement said. It also pledged support to the establishment of leasing businesses for small enterprises and agricultural development.

Export of equipment and international production capacity cooperation aided by financial leasing are encouraged， the document added.

Equipment Show

New types of ground track traffic system developed by Chinas CRRC Corp. Ltd. on display at an industrial show in Zhuhai， south Chinas Guangdong Province， on August 22.

A total of 203 advanced equipment manufacturers attended the two-day event.

Cross-Straits Deal

Chinese mainland and Taiwan negotiators signed two agreements concerning cross-Straits flight safety and taxation cooperation on August 25.

The agreements were signed by the mainland-based Association for Relations Across the Taiwan Straits（ARATS） President Chen Deming and Taiwan-based Straits Exchange Foundation Chairman Lin Join-sane in Fuzhou， capital of south Chinas Fujian Province.

The civil aviation agreement covers licensing for civil aviation organizations， products and personnel as well as flight standards and airworthiness certification. The two sides agreed to set up a reporting system and mechanism to coordinate responses to accidents and emergencies.

Based on this agreement， the negotiators discussed cooperation for investigating and handling civil air accidents.

The taxation agreement outlines rules for income from cross-Straits economic exchanges and favorable tax rates for such activities. It also contains strategies to avoid double taxation.

The two sides also agreed to establish a system to avoid discriminatory taxation.

According to Chen， the civil aviation agreement will make flying safer， reduce civil aviation costs and deepen cross-Straits exchanges in this industry， while the taxation deal will reduce costs for enterprises and individuals and encourage cross-Straits direct investment.

ARATS Executive Vice President Zheng Lizhong said at a press confer-ence that a major feature of the taxation agreement is reciprocal arrangements for both sides to create a more stable， transparent and competitive environment for investors.

Food Assembly

Visitors take a photo of a structure made of agricultural products at a farming fair in Guiyang， Guizhou Province， on August 21. The three-day event saw the presence of more than 700 domestic and foreign companies.

Crackdown Campaign

Chinese police have launched a nationwide campaign against underground banks to maintain order in the financial and capital markets， the Ministry of Public Security （MPS） said on August 24.

According to Vice Minister Meng Qingfeng， the campaign will run from now through the end of November.

Meng said that underground banks still run rampant and are becoming a channel for other crimes to transfer illicit assets， in addition to disturbing the financial and capital markets.

A similar campaign was launched in April by the MPS， the Peoples Bank of China and the State Administration of Foreign Exchange to stop transfers of illicit money through offshore companies and underground banks. The campaign uncovered several major cases involving more than 430 billion yuan （$67.2 billion）， Meng said. He urged police authorities around the country to better coordinate with the central bank and the foreign exchanges regulator in the ongoing campaign.

Removing the Cap

China may remove a 75-percent loanto-deposit ratio stipulation， according to a draft discussed during a bimonthly session of the Standing Committee of the National Peoples Congress （NPC）， the national legislature， which started on August 24.

The ratio will instead be regarded as a liquidity-monitoring indicator， according to a draft amendment to the Law on Commercial Banks， which was deliberated by the NPC Standing Committee.

China has kept the 75-percent ratio since the law was enacted and put into effect in 1995.

Shang Fulin， Chairman of the China Banking Regulatory Commission（CBRC）， said that the stipulation of loan-to-deposit ratio no longer meets the commercial banks development needs， and the removal will boost real economy in line with international convention.

According to statistics by the CBRC， at the end of 2014， 271 commercial banks exceeded a loan-to-deposit ratio of 70 percent， of which 86 exceeded 75 percent.

The amendment is meant to stabilize economic growth in response to the downturn pressure on the economy， said Shang.

Upgraded FTA

China and the Association of Southeast Asian Nations （ASEAN） have agreed to strive to bring to an end their negotiations on an upgraded version of the China-ASEAN Free Trade Area （FTA） before the end of this year.

“Progress has been made in comprehensive and in-depth consultation on goods and services trade， investment and economic and technological cooperation during the past three rounds of negotiation since it began one year ago，” said Chinese Minister of Commerce Gao Hucheng shortly after a China-ASEAN （10+1） Economic MinistersMeeting held in Kuala Lumpur， Malaysia， on August 23.

The China-ASEAN FTA came into effect on January 1， 2010. It is the largest of its kind in developing countries that benefits more than 1.8 billion people.

Since the FTAs inception， China has become ASEANs largest trading partner， while ASEAN Chinas third largest.

“The continuous increase in trade and economic cooperation between China and ASEAN， driven by the FTA， has contributed a lot to economic development in both China and ASEAN member states，” Gao said.

The China-ASEAN FTA initiated and played a leading role in the overall economic integration in East Asia and has also made great contributions to the liberalization of global trade， Gao said.

The 10-member ASEAN， established in August 1967， groups Brunei， Cambodia， Indonesia， Laos， Malaysia， Myanmar， the Philippines， Singapore， Thailand and Viet Nam.