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The Beijing Hour
Evening Edition
Thursday July 19th, 2013.
Welcome to the Beijing Hour, coming to you live from the Chinese capital.
Coming up on our program this evening,
Torrential downpours flood the city of Kunming in Yunnan Province.
Detroit becomes the largest US city to file for bankruptcy.
GSK faces prosecution risk in UK over bribery in China.
Business, China set to raise fuel prices.
Sports, Chinese sportswear company Li-Ning suspend sponsorship of Jamaican sprinter Asafa Powell over doping tests.
Entertainments, Jay Chou adds more dates to the Hong Kong leg of his world tour.
Plus Special reports takes a look at new innovations and technology for low carbon living herein China.
Weather
We'll the skies clear up a bit tonight here in capital the overnight low's at 23 degrees Celsius.
For the weekend, seeing a mix of sun and cloud. Temperatures ranging from 31 to 23.
Meanwhile Shanghai will be clear tonight, with a low of 28, it's gonna be cloudy tomorrow, with a high of 35.
Lhasa will have moderate rain tonight, 12 degrees the low, more showers for tomorrow with a high of 24.
Elsewhere in the world, staying in Asia
Islamabad, thundershowers, with a high of 31.
Kabul, sunny, 36.
Over in Australia
Sydney, overcast, highs of 21.
Canberra, rainy, 9.
Brisbane, rainy, 23.
And finally, Perth will be sunny with a high of 17.
Top News
Torrential rain triggers urban flooding in SW China city
Continuous downpours have been pounding southwestern China.
Heavy rains have resulted in urban flooding in the city of Kunming, capital of Yunnan Province and geological disasters in Sichuan.
CRI's He Fei has more.
The highest levels of rainfall this year have hit Kunming, capital city of Yunnan Province, forcing the so-called "city of eternal spring" to grapple with urban flooding.
Several rivers running through the city have seen drastic increases in water levels.
So far rainfall has reached up to 190 millimeters, and rain-triggered floods have seriously disrupted road traffic in the city.
Lin Lin, a local resident, says she saw cars and taxi's submerged along the streets.
"The rain started since Thursday night. There is no flooding around my apartment building as it is in a relatively high land. However my friends said in some places in the city, on the roads the water level can reach thighs."
According to the city's flood control office, more than 200 inundated bridges have been rendered unusable.
Jiang Kaili, deputy director of the office, says the city's drainage system failed, resulting in floods in many areas.
The city government has initiated emergency response for flood control, and more than 300 workers have joined in disaster relief efforts.
According to the provincial weather forecast, more rainfalls are expected in the following days in the region.
Meanwhile, a new round of rainstorms have pounded Sichuan Province, where 58 people have been killed and 175 other were still missing in previous downpours.
In Cangxi County, over 100 families have been evacuated after being stranded by flooding overnight.
"There are about 30 people still inside their homes. We have been stranded since 3am last night."
No casualties have been reported in the county yet.
In the city of Guangyuan, flooding has forced the evacuation of 12,300 residents, inundated nine townships, disrupted 20 country roads and triggered nine landslides.
Rainstorms will continue until Saturday in most parts of Sichuan.
The provincial flood control and drought relief headquarters have sent two work groups to several areas to coordinate disaster relief efforts.
For CRI, this is He Fei.
Asiana airline negotiates with victims' families in Jiangshan
Asiana airline has failed to provide exact reasons for the crash and a compensation plan for victims' families of the July 6th crash accident.
The company held its first negotiation with victims' families in Jiangshan middle school, where the three girls killed came from.
One of the delegates from the airline made this response:
"Regarding this issue, we would consult with our legal counsels, but I can answer it personally. No matter whether Chinese, Koreans or Americans, all the victims should be treated with the same standard to show the same respect for life."
The Asiana delegation say the purpose of the negotiations are to apologize and solicit opinions.
Earlier this month three Chinese girls from Zhejiang Province were killed when the Asiana Airlines Flight made a crash landing in San Francisco.
83-passengers aboard the flight have already filed a lawsuit towards the plane's manufacturer Boeing, through a law firm in Chicago.
Shen Danyang is interviewed by CRI exclusively
Ministry of Commerce spokesman Shen Danyang said the trend of foreign trade would be severe and complicated in the second half of the year.
The official said the government would take supportive measures.
CRI's Xie Zhao has more.
Reporter:
The contribution rate of exports for China's economy has stood at 15-to-20-percent in recent years.
It is higher than that in developed countries, which stands at 10-percent on average.
Shen says the figure reflects the demand of China's current economic development.
He says the government will take positive measures to stimulate the growth of foreign trade.
"We come up with some measures. For example, macro policies regarding foreign trade will keep stable, such as RMB exchange rate, relevant tax policies, bank financing and loans for enterprises. Progress of the tax refund and of facilitating measures can be accelerated."
Recent statistics show the total volume of imports and exports stands at around two trillion yuan for the first half of this year, up 8.6 percent year on year.
Shen Danyang says although growth surpasses expectations, the trend of foreign trade will still be severe and complicated .
"Foreign demand doesn't pick up momentum. Although the U.S economy is recovering, the economies of Japan, the E.U and other countries and regions, including emerging economies are still seeing a downturn. Also the cost of exporting is still very high. And we all know there is trade friction. The trading environment still faces many problems."
Meanwhile, both imports and exports saw negative growth in June this year.
This has raised some concerns over whether the good days of China's foreign trade will come to an end.
However Shen says foreign trade will still play an indispensable role in China's macro-economy.
"Now the government hopes that investment may decline while consumption can rise. Now the authorities have taken measures to stimulate consumption. But it will take time. Under these circumstances, foreign trade still plays a positive role."
Shen also comments on the current trading frictions.
"The volume of China's exports has nabbed the No.1 spot for three consecutive years, which shrinks the market share of other countries. Many countries have taken trade protectionist measures. We should be calm on that."
The official noted that China is still an attractive market to foreign investment as its economic environment gradually improving.
For CRI, this is Xie Zhao.
GSK faces prosecution risk in UK over bribery in China
Britain's largest drugmaker GlaxoSmithKline may be prosecuted in the United Kingdom under the country's anti-commercial bribery law.
The company is already facing bribery charges in China, after four of its senior executives in its Chinese sector detained by police.
Monty Raphael, special counsel in Business Crime in London, said GSK is at risk of being prosecuted in the UK, if the bribery conduct took place after July 1st, 2011, when UK adapted its relevant laws.
However, he also said that it is very likely the UK's judicial department will not prosecute GSK, due to fears that it may impact the country's economy, tax and employment.
GSK probe may lead to drug price reform: expert
Anchor:
A travel agency in east China's Shanghai has been closed, so that a probe can be carried out over its role in suspected bribery and tax-related violations of GlaxoSmithKline or GSK.
Meanwhile, it is being reported that the China branch of Belgian drug maker UCB has been visited by authorities as China widens its probe into the drug industry.
Industry insiders say that aside from cracking down on commercial bribery, the investigation may work to curb sky high drug prices in the country.
CRI's Zhang Shuangfeng has more.
Reporter:
Li Ling is a professor from the National School of Development of Peking University. She says the current investigation into GSK only reveals the tip of the iceberg in relation to drug pricing.
"Over the years, hospitals have depended heavily on drug sales for revenue. From drug production to sales, there is a comprehensive industrial chain. The latest round of medical reform only touched on the drug sales in hospitals, but in the drug production and distribution process, there is huge room for overpricing. But the authority hasn't probed into this sector until now. So, I think the investigation will be very helpful to bring in further reforms in drug pricing."
GSK China has been accused of transferring up to 3 billion yuan or 489 million US dollars to 700 travel agencies and consultancies since 2007 to facilitate bribes.
Wen Jianyong, the owner of the Shanghai-based travel agency, says the falsely claimed money is used to bribe GSK's interested parties.
"Liang Hong would tell me that he is going to visit an expert or official. But according to their company rules, the employee can't spend over 200 yuan on a gift. That will not be enough. Then he would ask me to prepare more cash for him. Sometimes it could be 40 to 50,000 yuan and sometimes it could be 500,000."
Liang Hong was the operations manager for GSK China. He adds the money spent on bribery will be shifted on to product costs, which eventually pushes up the drug prices.
"Each procedure comes with costs, and all of them will be added to the drug price. This sort of operational cost will take up around 20 to 30 percent of the product price."
Liang says the company's antidote for hepatitis B originally costs less than 84 yuan, but with operational costs taken into account, the ex-factory price of the drug can reach over 140 yuan.
Earlier this month, the National Development and Reform Commission started a separate investigation against 60 pharmaceutical companies for their drug pricing.
Meanwhile, Cheng Wenhao, a professor with Tsinghua University, is calling for further investigation over the parties and personnel who receive bribes.
"In my opinion, a balanced commercial bribery investigation should look into both parties; the provider and the receiver. Those who receive bribes should also face harsh penalties. Only by doing so can the authorities crack down on the supply and demand of commercial bribery."
The investigation is currently ongoing and a British executive of GSK China has been barred from leaving the country.
For CRI, I'm Zhang Shuangfeng.
Detroit becomes largest US city to file for bankruptcy
Detroit has become the largest US city ever to file for bankruptcy.
The move came after an emergency manager couldn't get creditors to sign on to a restructuring plan.
The largest city in the State of Michigan is saddled with more than 18-billion-US-dollars worth of debt.
Detroit Mayor, Dave Bing, says the city will just have to make the best of it.
"The reality is, even the casual observer, even the casual observer, has had to understand for some period of time now that Detroit simply was not on a sustainable footing, continuing to borrow, continuing to defer pension payments, continuing not to pay its bills on time, continuing a deepening insolvency."
The struggling motor city lost a quarter of a million residents over the last decade.
Businesses have also fled leaving the city with a shrunken tax base.
If the filing is approved, the city will be allowed to liquidate its assets to satisfy creditors and pensions.
However the filing puts the city on an uncertain course that could mean laying off municipal employees, raising fees and scaling back basic services such as trash collection and snow ploughing.
The bankruptcy could last over a year.
Navalny freed on bail
A Russian court has temporarily freed opposition leader Alexei Navalny from jail bending an appeal.
This comes a day after Navalny was sentenced to 5 years for embezzlement.
The court ruled that keeping him in custody would deprive him of his right to stand in the mayoral elections in Moscow in September.
Thousands of Russians had protested against Navalny's conviction, saying it was politically motivated.
"I don't agree with today's verdict, I don't agree with what is going on in the country, I don't agree with lots of other things - the way elections are held, lawlessness everywhere. I don't agree! That's why I came here."
Navalny has been a vocal critic of Russian President Vladimir Putin.
The bail now will at least allow Navalny to campaign for the upcoming elections.
Navalny has been convicted of embezzling millions of roubles from a local state-owned timber company.
Navalny is denying the charge.
UK parliament publishes first safety report on Chinese community
A new parliamentary report is suggesting the Chinese business community in the UK has an inherent lack of trust with the local authorities.
The report has been put together by the All Party Parliamentary group for the Chinese community in Britain.
It's found that only 2-percent of the Chinese community with limited conversational ability are satisfied with police services in the UK.
MP Barry Gardiner heads the Parliamentary Committee.
"This is the first time that parliament has seriously looked at the relationship between the Chinese community and the UK and the police force. And I think we have come up with some very profound results to this investigation. First of all, we see the problem arise through the lack of confidence towards police."
The report has also found that nearly 44-percent of the Chinese community surveyed say they believe there is no point in calling the police when an emergency occurs.
There are more than 500-thousand Chinese people living in the UK.
Australia to block asylum seeker arriving by boats
People arriving by boat in search of asylum will no longer be resettled in Australia, but will go to Papua New Guinea.
Australian Prime Minister Kevin Rudd made the announcement as part of his overhaul of asylum policy ahead of the upcoming general election.
"Asylum seekers taken to Christmas Island will be sent to Manus and elsewhere in Papua New Guinea for assessment of their refugee status. If they are found to be genuine refugees they will be resettled in Papua New Guinea, an emerging economy with a strong future, a robust democracy, which is also a signatory to the United Nations Refugees Convention."
To accommodate the new arrivals, an offshore processing center in PNG's Manus island will be expanded to hold up to 3-thousand people.
Kevin Rudd says no cap will be placed on the number of people Australia can send to Papua New Guinea.
Australia has seen a sharp rise in the number of asylum seekers arriving by boat in recent months.
Their boats are often over-crowded and tend to capsize.
Rudd says the "hard-line decision" was taken to ensure border security.
Biz Reports
Asian Stock
Chinese shares closed lower for a third day Friday, led by real estate companies.
When the market closed, the benchmark Shanghai Composite Index shed 1.5 percent.
The Shenzhen Component Index plunged over 3 percent.
The real estate sector sunk 3.7 percent.
Shares of China Vanke, the nation's biggest listed property developer, slumped 5.5 percent to 9.56 yuan per share.
In Hong Kong, the benchmark Hang Seng picked up 0.1 percent.
Elsewhere in Asia,
Japan's Nikkei shed 1.5 percent, reversing an early rise to an eight-week peak and ending a five-day winning run.
Over in Seoul, South Korea's KOSPI lost 0.2 percent.
Singapore's Straits Times index decreased 0.2 percent.
And finally Australia's S&P/ASX 200 also up 0.7 percent.
China to raise fuel prices
The National Development and Reform Commission, the country's top economic policy-maker has announced it will raise fuel prices starting this Saturday.
Retail prices of gasoline will be raised 325 yuan per ton while prices for diesel will be 310 yuan.
This round of price increases is the biggest increase since the NDRC further liberalized the pricing mechanism of oil products in March.
Finance minister rules out large stimulus
Minister of Finance Lou Jiwei has reiterated that China will not introduce large scale financial stimulus measures.
Lou said that his ministry will only make minor adjustments to boost economic growth while maintaining the general scale of the deficit.
The current deficit runs about 2.2 percent of GDP.
The minister also stressed that tax cuts for small businesses are likely to make it into the ministry's agenda.
A cut of 900 billion yuan or 145 billion US dollars in tax revenue is expected to be introduced in the next two years.
Corporate news
Anchor:
Let's check in with some of the key events on the corporate front in China this week.
CRI's Paul James earlier spoke with Doug Young, associate professor at Fudan University and former China company news chief at Reuters.
…
Back Anchor:
Doug Young, associate professor at Fudan University and former China company news chief at Reuters.
Google and Microsoft Q2 earnings miss expectations
Tech giants, Google and Microsoft are reported to have missed earnings expectations for the second quarter.
Google reported profits of 9.7-billion-US-dollars, up 16-percent from a year ago but less than analysts were expecting.
Meantime Microsoft made 4.5-billion, but announced that it would take a 900-million charge relating to poor sales of its Surface tablet.
Shares in both companies fell by more than 4-percent in after-hours trading.
Declining PC sales have hurt Microsoft's efforts to boost its business with the sale of its Windows 8 operating software.
The global PC sales are now experiencing their longest slide in five years.
Two other computing giants, Intel and IBM reported big drops in net income in the second quarter, each seeing a 29% and a 17% respectively.
Fonterra dairy to cut milk powder price
New Zealand's Fonterra has become the latest milk powder maker to cut its product price following China's investigation into price-fixing by major infant formula makers.
Fonterra, the world's largest dairy company, said it will reduce the price of its Anmum maternal milk powder by 9 percent starting from August 1.
The price of Fonterra's other brand in China, Anlene, which mainly targets middle-aged consumers, will remain unchanged.
It is the ninth milk powder maker to cut prices after the country's regulators started looking into alleged anti-monopoly violations by major domestic and overseas formula makers.
Dairy firms who earlier announced price cuts, include Abbott Laboratories, Nestle, Danone, Royal FrieslandCampina and Mead Johnson Nutrition.
Jeweller Chow Tai Fook named in price-fixing probe
The world's biggest jewellery retailer, Chow Tai Fook, is now among a number of gold shops being probed by authorities here for price fixing.
The country's National Development and Reform Commission said it is now probing price manipulation by some jewellery shops in the commercial capital of Shanghai.
The other jewellery shops that are being investigated include Chow Sang Sang, and Shanghai-based Lao Feng Xiang.
Following the news, Shares in Chow Tai Fook fell more than 3 percent, its worst day in four weeks, while Chow Sang Sang shed 0.8 percent.
Earlier this month, Chow Tai Fook reported a 63 percent spike in first-quarter revenue.
Gold products sales from its own stores soared 78 percent in the quarter that ended June 30th.
Chinese taste for luxury consumption moderates
The Luxury Consumer Price Index was up 1.5 percent last year in China, the smallest gain in seven years.
Among nine major categories, prices of high-end tobacco and alcohol slumped the most in 2012, falling by 1.8 percent after having risen 7.8 percent in 2011.
While prices of luxury automobiles and luxury travel costs stood out as the only two categories to register considerable rises.
Upscale cars saw their prices rise 4.1 percent last year.
While luxury travel costs were up 6.2 percent, the biggest increase among all surveyed categories.
China's PE/VC market slumps in H1
China's venture capital and private equity market has faltered amid a slowing economy and the country's longest spell of IPO freeze.
In the first half of 2013, total investments int the two sectors only amounted to 9.9 billion U.S. dollars, down 20.9 percent from the same period last year.
The market warmed in the second quarter, but buyouts are not expected to significantly pick up due to the economic slowdown and a lack of exit opportunities.
Mergers and acquisitions have replaced listing as the primary method of opting out of venture capital and private equity deals.
China's securities regulator has suspended all IPOs for about eight months since last December.
Headline News
Chinese vice president meets ROK legislators
China's Vice President Li Yuanchao says China and South Korea should actively advance exchanges and cooperation between young people from both nations.
Li Yuanchao made the remarks while meeting a group of young South Korean legislators in Beijing.
The Vice President said friendship between young people can create a foundation for the future growth of bilateral relations.
Heading up the delegation on the Korean side is Chung Mong-Joon, head of the South Korea-China Inter-Parliamentary Council.
Chung highlighted readiness to promote exchanges and cooperation between the young people of both countries and to work for the growth of bilateral relations.
Asiana airline negotiates with victims' families in Jiangshan
Asiana airline has failed to provide exact reasons for the crash and a compensation plan for victims' families of the July 6th crash accident.
The company held its first negotiation with victims' families in Jiangshan middle school, where the three girls killed came from.
The Asiana delegation say the purpose of the negotiations are to apologize and solicit opinions.
Earlier this month three Chinese girls from Zhejiang Province were killed when the Asiana Airlines Flight made a crash landing in San Francisco.
83-passengers aboard the flight have already filed a lawsuit towards the plane's manufacturer Boeing, through a law firm in Chicago.
China to raise fuel prices
The National Development and Reform Commission, the country's top economic policy-maker has announced it will raise fuel prices starting this Saturday.
Retail prices of gasoline will be raised 325 yuan per ton while prices for diesel will be 310 yuan.
This round of price increases is the biggest increase since the NDRC further liberalized the pricing mechanism of oil products in March.
GSK faces prosecution risk in UK over bribery in China
Britain's largest drugmaker GlaxoSmithKline may be prosecuted in the United Kingdom under the country's anti-commercial bribery law.
The company is already facing bribery charges in China, after four of its senior executives in its Chinese sector detained by police.
Monty Raphael, special counsel in Business Crime in London, said GSK is at risk of being prosecuted in the UK, if the bribery conduct took place after July 1st, 2011, when UK adapted its relevant laws.
However, he also said that it is very likely the UK's judicial department will not prosecute GSK, due to fears that it may impact the country's economy, tax and employment.
Newspaper Picks
Xinhua
"Lack of recycling blamed for mounting garbage"
Insufficient recycling has been blamed as a major reason for mountains of garbage surrounding cities in a rapidly urbanizing China.
A government survey shows more than one-third of the nation's cities are besieged by rubbish, with the dumped garbage taking up 50-thousand hectares of land.
Megacities such as Shanghai and Beijing each produce nearly 20-thousand metric tons of rubbish daily and output is rising yearly, posing great challenges to the environment.
The government listed a raft of cities that started piloting recycling programs back in 2000 but those programs have failed to prosper.
China Daily
"Graduate bicycles home, more than 1,200 km"
A 22-year-old woman bicycled more than 1,200 kilometers from Xi'an, Shaanxi province, to her home in Jiangxi province.
It took her 16 days to complete the journey which stretched over 5 provinces.
Liao Jingwen, who just graduated from Xi'an International Studies University, chose to ride home to bid farewell to her university life.
Her father followed by car but kept his distance and did not disturb her for 10 days.
The journey from Xi'an to Yichun, Jiangxi province, started on June 28th and ended on July 13th.
News Limited Network
"Baskin-Robbins reveals what your favorite ice cream flavors say about you"
Ice cream retailer Baskin-Robbins has paired with a smell and taste expert to identify what some of the most popular ice cream flavors suggest about someone's personality.
For example, if your favorite flavor is Vanilla, you're more likely to be impulsive, easily suggestible and an idealist.
If your favorite flavor is Chocolate, you're more likely to be dramatic, lively, charming, flirtatious, seductive and gullible.
If your favorite flavor is, Very Berry Strawberry, you're more likely to be a tolerant, devoted and an introvert.
If your favorite flavor is Chocolate Chip Cookie Dough, you're more likely to be ambitious, competitive and a visionary.
Mint Chocolate Chip--you're more likely to be argumentative, frugal and cautious.
Pralines 'n Cream-- you're more likely to be loving, supportive and prefer to avoid the spotlight.
Jamoca (i.e. coffee)--you're more likely to be scrupulous, conscientious and a moral perfectionist.
Chocolate Chip-- you're more likely to be generous, competent and a go getter.
Rainbow Sherbet--you're more likely to be analytic, decisive and a pessimistic.
Rocky Road--you're more likely to be aggressive, engaging and a good listener.
BBC
"Machine turns sweat into drinking water for Unicef"
A machine that takes sweat-laden clothes and turns the moisture into drinking water is in use in Sweden.
The device spins and heats the material to remove the sweat, then passes the vapor through a special membrane designed to only let water molecules get through.
Its researcher says the critical part of the sweat machine was a new water purification component.
Researchers use a substance that only lets steam through but keeps bacteria, salts, clothing fibers and other substances out.
They have something similar on the International Space Station to treat astronaut's urine - but the sweat machine was reportedly cheaper to build.
Since its launch, its creators say more than 1-thousand people have "drunk other's sweat."
They add the liquid is cleaner than local tap water.
Special Reports
Individuals and Enterprises Innovate for Low Carbon Living
Anchor:
A forum on low-carbon living has been held in Guiyang, southwest China's Guizhou Province.
Participants are dishing out advice on practical steps, as well as technological innovations for low-carbon living.
CRI's Li NIngjing has more.
Reporter:
Innovation in micro technologies may lead to major advance and success in low carbon living.
Du Qun is a deputy director of the Research Institute of Environmental Law of Wuhan University.
She thinks Chinese enterprises should lead in building a low-carbon living, which also enables them to reduce production cost.
"Innovations in micro-technologies have a direct bearing on increasing the efficiency in energy consumption. I think government should give an incentive to enterprises more than implementing compulsory measures. Meanwhile, enterprises can also benefit from saving production cost."
Chinese dairy giant, Inner Mongolia Yili Industrial Group, is one of the leading enterprises in applying technological innovations for the sake of energy conservation.
Zhang Jianqiu is the executive president of the group.
He explains the temperature is below zero in Zhaodong, Heilongjiang Province for nearly 6 months every year, so their researchers have developed a filter-like device that could well absorb cold air into their freezers.
In this way, their local factory does not need to open the refrigeration equipment during those six months. Each month, it could save 320,000 tons of electricity.
Zhang Jianqiu says he is happy about a small investment in technological innovations resulting in huge gains.
"In 2012, the Yili Industrial Group has adopted over 300 projects that apply the micro-technological innovations, saving a cost of 30 million yuan from energy conservation."
In addition to enterprises, individual contribution could also be vital to building a low-carbon lifestyle.
At the forum in Guiyang, experts also discussed new initiatives aimed at improving recycling behavior as part of its journey to a low-carbon lifestyle.
For example, Wang Jiwei, secretary-general of China Association of Resource Comprehensive Utilization advises practical steps in collecting beer bottle lids.
"I think our nation should now devote much of our attention to developing the recycling industry. Here I give you a concrete example: if we could gather and recycle the lids of beer bottles we consumed each year in China, we may get 1.7 billion tons of tin plate, which could be built into an aircraft carrier."
The forum on low-carbon living will last until this Sunday.
For CRI, I'm Li Ningjing.
Sports
Li-Ning suspends sponsorship of Powell
Chinese sportswear company Li-Ning has suspended its sponsorship of Asafa Powell after the Jamaican sprinter failed a doping test.
The former 100-meter world-record holder has also been formally placed under criminal investigation in Italy for possibly violating anti-doping laws.
Li Ning said in a statement it has "great respect for his efforts and hard work" over the years but it was suspending its deal with Powell pending the outcome of a doping investigation.
Li-Ning said it will immediately end its contract with Powell if he is "found to be involved in the use of banned stimulants."
The announcement comes days after Powell and fellow Jamaican track star Sherone Simpson tested positive for a banned stimulant at the Jamaican championships last month.
Sportswear giant Adidas has also reportedly suspended its sponsorship of the US sprinter Tyson Gay, who tested positive in the same event.
Justin Gatlin talk about doping scandal
Meanwhile, US sprinter Justin Gatlin has also commented about the recent doping sandal ahead of the Herculis meeting in Monaco.
Gatlin says he is focusing on training and trying not to get carried away by the issue.
"I really had no reaction, I just kind of really focusing on getting healthy again and getting back on the track and going out there and competing in Monaco and going forward with my training and getting ready for Moscow. So I want to be in tip top shape so I really had no big reaction to it, I just want to focus on myself and hope the best for them."
The comments come days after Tyson Gay, Asafa Powell and Sherone Simpson failed a doping test.
If Gay's 'B' sample also returns positive, he could face a two-year ban and would struggle to be competitive again.
Gay has already withdrawn from the Herculis meet and the upcoming world championships in Moscow.
Federer, Haas and Monaco make further progress at German Championships
Top-seeded Roger Federer has cruised past Czech qualifier Jan Hajek 6-4, 6-3 to reach the German Tennis Championships quarter-finals in Hamburg.
The four-time Hamburg champion is playing his first tournament since losing in the second round of Wimbledon.
The 17-time Grand Slam champion has dropped to No. 5, his lowest ranking in a decade.
He will next play Florian Mayer of Germany.
Meanwhile, fourth-seeded Wimbledon semi-finalist Jerzy Janowicz of Poland has been forced to retire with a right arm injury, allowing Fernando Verdasco to advance.
Second-seeded Tommy Haas and fifth-seeded Juan Monaco of Argentina have also advanced.
Monaco will next play third-seeded Nicolas Almagro.
Wuhan to Hold 2014 WTA Tournament
Hubei's provincial capital of Wuhan is set to host the WTA tennis tournament from 2014.
Wuhan residents will soon be able to watch local tennis hero Li Na on home soil, at the Wuhan Open, a WTA Premier Five tournament.
The Premier Five tournaments is one of the world's top tennis tournaments hosted by the WTA, with a total purse of 200 million US dollars.
At least seven of the world's top 10 women's tennis players will attend this tournament.
Construction of the Wuhan Optical Valley International Tennis Center, the venue for the Wuhan Open is under way.
The main stadium will have 15,000 seats and a smaller stadium will be able to accommodate 5,000 people.
It will also have six standard hard courts.
Wuhan has replaced Tokyo to host the tournament from 2014 to 2028.
On the 2014 calendar, the Wuhan Open will be the fourth tournament.
China currently hosts three tournaments -- the China Open, the Guangzhou International Women's Open, and the Shenzhen Longgang Gemdale Open.
Zach Johnson leads at Open Championship after day one
Zach Johnson has held the lead at five-under-par after the first round of the Open Championship at Muirfield, Scotland.
The American's shot an opening 66 for 5 under par to be one clear of Spain's Rafa Cabrera-bello (bay-oh).
"Truly it's my favorite tournament to play in. Really I mean that seriously, just because we don't have it over in the states. I just appreciate it so much. You have to have every shot, you have to hit it low, which everybody knows. But you got to hit it high. You have to put spin on it too. So I think that it requires all aspects. It's just one day, so hopefully I can continue good form until the end of the week.
Phil Mickelson and Tiger Woods are part of a six-man tie for the ninth at two under par.
China's top golfer and sole representative at the Open Championship, Wu Ashun, sits at five over par.
Luke Donald and Rory McIlroy both struggled in the first round. McIlroy shot an opening 79 for 8-over. And Donald was one stroke back at nine-over.
Riblon wins stage 18 of Tour de France as Froome feed leads to penalty
Christophe Riblon has become the first Frenchman to win a stage at this year's Tour de France.
Riblon was cheered on by the French crowd as he beat out Tejay Van Garderen in the final stretch. The young American had led for much of the race.
Four hours 51 minutes and 32 seconds his time - the brave van Garderen finished as runner-up, 59 seconds back.
Meanwhile, overall leader Chris Froome has been hit by a 20-second penalty for an illegal feed.
However, Froome still increased his lead over closest rival Contador to five minutes 11 seconds after finishing in seventh place, almost a minute ahead of the Spaniard.
And Nairo Quintana has improved to third overall, five minutes 32 seconds in arrears.
Entertainment
Jay Chou Extends Concert Dates in HK
Jay Chou has revealed he will be adding more dates to the Hong Kong leg of his Ferris Wheel World Tour.
Chou will now be performing a record-breaking total of 9-shows in Hong Kong, the most he's played in a single city.
The singing sensation opened up about playing more shows.
"I personally hoped to play ten shows in the beginning, but we couldn't arrange the venue. Also, they arranged a rest day for me so I could go shopping for a bit. Hong Kong is a great place to go shopping."
Only 5-shows were originally planned for Hong Kong, but after tickets sold out within 2-hours of their release the singer wanted to extend his stay.
Hong Kong is Chou's 11th stop having already performed in Singapore, Malaysia, Beijing, and Shanghai.
Comic Con News
Comic con is in full swing down in San Diego, California.
The convention features live panels and tons of events concerning most everything related to pop-culture.
A new teaser for the upcoming Amazing Spiderman 2 film debuted featuring actor Jaime Foxx as one of the film's villains, Electro.
Filming for the new flick has already wrapped. It swings into theaters May 2014 with two sequels planned for 2016 and 2018.
Sherlock actor Benedict Cumberbatch appeared in a video message at Comic Con.
The actor pretended to be confused as to what he was promoting considering his involvement in several high profile projects.
Cumberbatch will be reprising his role as sociopath Sherlock Holmes in the hit show Sherlock this fall in the UK.
He'll also appear as the dragon Smaug in the upcoming Hobbit sequel, The Hobbit: The Desolation of Smaug and as controversial wikileaks found Julian Assange in the new film The Fifth Estate.
US actor Harrison Ford spoke with journalists at the event about his upcoming film adaptation of the classic book Ender's Game.
The film has come under fire recently after Orson Scott Card, the author of the original book, spoke out about his stance against gay marriage.
Ford who is known for his support of same-sex marriage addressed the issue and promised none of Card's views are part of the thematics of the film.
He went on to point out the recent legislation across the world which has made same-sex marriage legal as an indication that humanity has won.
Actors David Duchovny and Gillian Anderson have reunited at Comic Con for a special X-Files 20th anniversary event.
The Mulder and Scully pair will appear on a panel with show creator Chris Carter and several writers from the hit paranormal TV show from the late 90s and early 2000s.
Emmy Award Nominees Announced
The nominees for this year's Emmy awards for outstanding television have been announced.
The TV series American Horror Story is leading the bunch with a total of 17-nominations including Outstanding Miniseries or Movie, and Outstanding Lead Actress in a Miniseries for Jessica Lange.
HBO's Game of Thrones also has a strong hand in the awards show.
It has been nominated for Best Drama Series, Best Supporting Actor for Peter Dinklage, and Best Supporting Actress for Emilia Clarke.
Game of Thrones will battle Breaking Bad for Best Drama Series.
Breaking Bad actor Bryan Cranston has also been nominated for Best Lead Actor in a Drama Series with Aaron Paul receiving a nod for Best Supporting Actor.
Comedian Louis CK has also achieved a nomination for Lead Actor in a Comedy Series for his show Louise, as had Jason Bateman for his work in Arrested Development.
Comedian Tina Fey is also nominated for Best Lead Actress in a Comedy for her show 30 Rock, which is also nominated for Outstanding Comedy Series.
The 65th Primetime Emmy awards for outstanding television will be announced in September.
JK Rowling Angered by Revelation of Pseudonym
Harry Potter author JK Rowling has commented she is very angry with the leak of her pseudonym Robert Galbraith.
UK paper The Sunday Times recently revealed Rowling as the true author of the recent crime novel The Cuckoo's Calling.
The law firm Russells reportedly leaked the information angering Rowling as she says she thought she could expect total confidence from them.
Rowling points out very few people knew she was writing under a pseudonym and she is very disappointed over the revelation.
A spokesperson for Russells claims the wife of partner Chris Gossage had told a friend in strict confidence.
However, the friend ended up revealing the secret to a Sunday Times journalists.
Rare Radiohead Tape for Auction
An extremely rare demo cassette from UK experimental rock band Radiohead will be auctioned off in September.
The cassette has recordings of 9 songs produced in 1986.
6 of the 9 songs have never appeared on any official Radiohead though fans can download them online.
The recordings come from the time Radiohead was known as On A Friday.
An auctioneer expects the sale price of the cassette to exceed 1-thousand pounds.
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