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BRIEF NEWS

China， Laos Agree on Cooperation

On May 3-5， 2016， Chinese President Xi Jinping， Premier Li Keqiang， top legislator Zhang Dejiang and senior Communist Party of China official Liu Yunshan held talks with visiting President of the Lao People's Democratic Republic， Bounnhang Vorachit.

According to a joint statement， the Chinese leaders and Bounnhang reached broad consensus on relations between the two parties，the two countries as well as international and regional issues of shared interest. Both sides agreed to enhance integration of development strategies， coordinate their construction of regional trade infrastructure， and cooperate more in production capacity and investment. They will push forward construction of the China-Laos railway and work together more closely on economic and technological development zones. The two sides agreed to strengthen cooperation in agriculture， energy， defense，law enforcement in border areas， people-to-people contact and cooperation at a local level. They will also continue to enhance collaboration in various international， regional and sub-regional mechanisms. China supports Laos holding the ASEAN's rotating chair this year.

On the South China Sea，the two sides agreed that maintaining peace， stability，cooperation and development of the South China Sea is in line with the common interest of regional countries， calling on the parties directly concerned to resolve disputes peacefully through negotiation. The Declaration on the Conduct of the Parties in the South China Sea should be implemented，the joint statement said， urging all sides involved to reach a Code of Conduct at an early date.

Premier Li Meets with Indonesian Coordinating Minister

On April 27， 2016， Chinese Premier Li Keqiang met with Luhut Panjaitan， Indonesian Coordinating Minister for Political，Law and Security Affairs， in Beijing.

Premier Li spoke positively of the current development of China-Indonesia ties， saying the two nations share common interests，and the potential for cooperation is huge. “China is willing to work with Indonesia to enhance multi-level exchanges and increase political mutual trust with Indonesia. The sound and stable development of ties not only has a significant impact on the two peoples and China-ASEAN relations， but also serves as a signal of peace and stability to the region as well as a driving force to economic growth in Asia， “ Li said.

Luhut said Indonesia views China as its most important cooperative partner， voicing willingness to improve exchanges， communication and coordination. He said there is plenty of room to boost cooperation and exchanges in areas as varied as security and fishery. He also welcomed more Chinese investment in Indonesia.

Luhut was in Beijing to attend the fifth deputy prime ministerial bilateral dialogue mechanism meeting. During the meeting，both sides agreed to increase security cooperation in the fields of defense， anti-terrorism， law enforcement， drug control and the Internet.

Paris Agreement on Climate Change Signed

Chinese Vice Premier Zhang Gaoli， the special envoy of President Xi Jinping signed the Paris Agreement on climate change on behalf of China in New York on April 22， 2016，giving a strong push to the international efforts against global warming.

A total of 175 countries inked the agreement on the first day of its opening for signature， a new record in the United Nations’ 70-year history. China was the 21st to sign， while the whole signing process lasted some 2.5 hours.

After the signing， the Paris Agreement still needs 55 nations that together account for 55 percent of global greenhouse gas emissions to ratify before it can enter into force.

On December 12， 2015，after nearly two weeks of hard bargaining， climate negotiators of 196 parties to the UN conference on climate change in Paris sealed the pact， aiming to reverse the trend of temperature rises mainly caused by carbon emissions. Experts said that China helped resolve several thorny issues to bring about some key breakthroughs.

China’s Consensus with Brunei，Cambodia， Laos

Chinese Foreign Minister Wang Yi said in Laos on April 22， 2016 that China has reached a four-point consensus with Brunei， Cambodia and Laos on the South China Sea issue.

The four countries agreed that the territorial disputes over some islands， rocks and shoals in the South China Sea are not an issue between China and the Association of Southeast Asian Nations （ASEAN） as a whole which should not affect the development of China-ASEAN relations， Wang told a press conference.

They agreed that the right enjoyed by sovereign states to choose on their own ways to solve disputes under the international law should be respected.

They opposed any attempt to unilaterally impose an agenda on other countries.

The four countries also agreed that territorial and maritime disputes should be resolved through consultations and negotiations by parties directly concerned under Article 4 of the Declaration on the Conduct of Parties in the South China Sea （DOC）.

They believed that China and the ASEAN countries are able to jointly maintain peace and stability in the South China Sea through cooperation. Countries outside the region should play a constructive role in this regard，they agreed.

Thai Crown Princess Sirindhorn Visits China

Zhang Dejiang， Chairman of the Standing Committee of China’s National People’s Congress （NPC）， met with visiting Thai Crown Princess Maha Chakri Sirindhorn in Beijing on April 6，2016.

Zhang said China and Thailand are good neighbors， good brothers and good partners. He spoke highly of the role of the princess in strengthening the Sino-Thai traditional friendship and promoting bilateral pragmatic cooperation in culture，education， science， technology，agriculture and other fields.

China attaches great importance to relations with Thailand， Zhang said， expressing his belief that the comprehensive strategic partnership for cooperation between the two countries will continue to yield substantial results under the support from the Thai royal family and leaders of both countries and through concerted efforts from both sides.

The princess said that she is willing to further push forward China-Thailand cooperation in education， culture， railway construction and other areas， so as to contribute more to bilateral friendship.

Princess Sirindhorn visited China from April 5 to April 7，2016 at the invitation of the Chinese government.

Releasing Water to Mekong River

“Considering the drought situation in downstream countries （Mekong 5 countries）， China has decided to continue discharging water from Jinghong Hydropower Station in Yunnan Province to downstream Mekong River from April 11 until the end of low water period. The water volume discharged will be adjusted in accordance with the situation in upstream areas and the actual demand of downstream countries，” said Chinese Foreign Ministry spokesperson Lu Kang at a news conference on April 12， 2016. Lu also said China is willing to cooperate with Lancang-Mekong River countries in coping with extreme climate conditions and in protecting water resources.

Cambodian Ministry of Foreign Affairs said that China’s ongoing discharge of water clearly reflected good cooperation on water resource management between China and the Mekong countries. A spokesman for the Ministry of Water Resources and Meteorology of Cambodia was quoted by The Khmer Times as saying:“About 60 million people who live along the lower Mekong River -including Cambodians - would benefit the discharge of water from China's upstream dam.”

Previously， at the request of the downstream Mekong countries， China dischargedwater from the Jinghong Hydropower Station in Yunnan Province from March 15 to April 10. The water discharged by China had been stored by the power station during the high water period and flood period.

Since the end of 2015，due to the El Ni?o effect，countries along the Lancang-Mekong River have suffered drought conditions to varying degrees， and their people’s lives and work have been affected.

Lao President， PM and Top Legislator Elected

The National Assembly（NA） of Laos elected General Secretary of the Lao People’s Revolutionary Party （LPRP）Central Committee Bounnhang Vorachit as the nation’s president on April 20， 2016.

The lawmakers also chose fellow LPRP Political Bureau member Thongloun Sisoulith as the prime minister and reelected Political Bureau member Pany Yathotu as the president of the NA at the first session of the eighth legislature in the Lao capital Vientiane.

Former Deputy Prime Minister and Minister of Education and Sport Phankham Viphanvanh was elected vice president，while Bounthong Chitmany，Sonexay Siphandone and Somdy Duangdy were elevated to deputy prime ministers.

During the sitting， the 149-member assembly is due to discuss pertinent issues and consider proposed legislative agenda for the five-year term in addition to candidatures to posts of People’s Supreme Prosecutor and President of the People’s Supreme Court.

The eighth session will also approve the country’s development vision until 2030， development strategy until 2025， and the 8th fiveyear National Socio-Economic Development Plan （2016-2020） as well as an annual budget.

Spike in Profits Suggests Stability

China’s industrial firms’profits have jumped at their fastest rate since July 2014，adding to evidence of a continued stabilization in manufacturing.

Industrial profits rose 11.1 percent in March compared with a year earlier， rising to 561.2 billion yuan （US$86.4 billion） in March. This compares with a 4.8 percent rise in the first two months of the year， the National Bureau of Statistics said on April 27.

The acceleration is mainly due to growth in sales， milder producer price deflation，cost cuts and gains from investments， the NBS said in a statement.

The fresh signs of stabilization may allow the government to dial back aggressive fiscal and monetary stimulus，as property markets and factories rebound. Several investment banks have dropped their earlier expectations of an interest rate cut this year.

Tom Orlik， chief Asia economist at Bloomberg，cited English poet Geoffrey Chaucer’s poetry line， “April with its showers sweet”.

“China， this April， is going to be all Chaucer，” he wrote in a note. However， the NBS noted the rebound may not be sustainable. Profits in March were concentrated in a few industries， including information technology， chemicals， auto and petroleum refining. And strong investment and net nonoperating income gains， which account for 30.5 percent of profits， may not last.

Structural headwinds facing China’s industrial sector，such as weak aggregate demand， oversupply and inventory pressure， remain strong， said He Ping， an economist with the NBS.

Whether the uptick in industrial profit can be sustained remains to be seen，He said.