新闻纵贯线 The Beijing Hour updated 08:00 2014/07/02

 
 
 
The Beijing Hour
 
Morning Edition
 
 
It's Paul James with you on this Wednesday, July 2, 2014.
Welcome to the Beijing Hour, coming to you live from the Chinese capital.
Coming up on our program this morning...
Both China and South Korea are issuing warning about the Japanese government's new military policy.
Funerals have been held for three Israeli teenagers murdered last month.
New reports are suggesting Sunni insurgents have captured another city along the border between Syria and Iraq.
In Business.... the negative list for the Shanghai Free Trade Zone has been pared down.
In Sports... Belgium and Argentina through to the quarters at the World Cup.
In Entertainment... a new Chinese comedy has raked in big bucks in its opening week at the box office.
First, let's check in with what's happening with the weather....
 
 
Weather
 
 
Beijing will see showers today with a high of 28 degrees Celsius.
Overnight it will be cloudy and temperatures should drop down to around 22.
Shanghai will see some rain during the daytime with a high of 27.
It will have slight rain tonight with a low of 22.
In Chongqing, it will be overcast with a high of 27.
Overnight slight rain and lows are expected to be around 19.
Elsewhere in the world, staying here in Asia,
Islamabad will have slight rain with a high of 32.
Kabul will be sunny with a high of 31.
Over to North America,
New York will have slight rain today with a high of 27 degrees.
Washington, moderate rain with a high of 37 degrees.
Honolulu, cloudy, 31.
Toronto, Canada, will see slight rain with a high of 25 degrees.
Finally, on to South America,
Buenos Aires will be cloudy with a high of 14.
And Rio de Janeiro will be cloudy with a high of 23 degrees Celsius.
 
 
There are several ways to keep in touch with us on the BJH
Weibo/Wechat account: the Beijing Hour
Email: [email protected].
 
 
Top News
 
 
China, SKorea Warn Against Japan's controversial resolution on collective self-defense
 
Anchor
Both China and South Korea are warning Japan not to hamper regional peace and stability.
The call comes after the Japanese cabinet passed a controversial resolution which will allow Japan to send troops overseas.
CRI's Su Yi has more.
----
REPORTER
It is one of the biggest changes in Japan's security policy since the Second World War.
Japan's current Constitution, famous for its war-renouncing Article 9, bans troops from fighting outside Japan.
China says this is a signal the Japanese government is hoping to walk away from its pacifist policies.
Chinese foreign ministry spokesperson Hong Lei:
"We notice that in Japan, there are strong objections towards the move to allow the country to exercise collective self-defense. The future of Japan should be decided by the Japanese public. China objects to Japan's action to press ahead with its agenda by fabricating a China threat theory. We demand that Japan respect the security concerns of neighboring countries and address the issue prudently. We ask the country to not hamper China's sovereignty and safety or the peace and stability of the region."
The United States is welcoming the move, saying it will make the US-Japan alliance more effective.
But Seoul, another ally of Washington, is cautioning Japan about easing its military limits.
South Korean Foreign Ministry Spokesman Noh Kwang-Ii.
"Our government will never tolerate Japan's exercise of collective self-defence that affects the Korean peninsula, without our request or agreement. It must be pursued in a direction that will not hurt regional peace and stability in the framework of the U.S.-Japan alliance while keeping the spirit of the peace constitution which has been maintained during the last 60 years."
In Seoul, protestors have gathered in front of the Japanese embassy, demonstrating against Tokyo's move.
"We really hope that Abe's government makes an unequivocal apology and reflects on its past actions, rather than trying to lift a ban on collective self-defense."
The move has also sparked demonstrations in Japan.
In Tokyo, thousands protestors have gathered outside Shinzo Abe's office.
Takeshi Iwaya is the Chairman of the Ruling Party Security Research Council.
"Up to now, Japan has said it won't do any 'wrong' and will wish for peace only. But that is not enough. Japan should cooperate with regional countries in a framework to protect the peace and stability of the region. We are aiming for a more proactive role."
Beating drums and carrying banners, the protesters are demanding Abe's Cabinet scrap its new plan.
"Japan hasn't launched a war for nearly 70 years, killing no one, and no innocent people have been killed. So I cannot bear the decision to amend the interpretation of the Constitution. I think it's totally wrong."
Over the weekend, a man set himself on fire in an apparent protest over the reinterpretation of the constitution.
The latest polls in Japan suggest around 54 percent of respondents object to the reinterpretation of Japan's anti-war constitution, compared with 29 percent who support the move.
Critics fear the new reinterpretation is the first step toward an eventual revision of the war-renouncing Article 9 of the constitution.
For CRI, I'm Su Yi.
 
 
Expert's view on Japan's reinterpretation of its anti-war constitution
 
Anchor
For more on the Japanese cabinet's move, CRI's Shane Bigham spoke earlier with Yang Bojiang, Director of the Institute of Japanese Studies of the China Institutes of Contemporary Int'l Relations.
[Q&A with Yang]
Yang Bojiang, Director of the Institute of Japanese Studies of the China Institutes of Contemporary Int'l Relations, speaking with CRI's Shane Bigham.
 
 
Israel hold funeral for teens; strikes Hamas targets
 
Thousands of mourners have attended the funerals for three Israeli teenagers who were abducted and murdered while hitch-hiking in the occupied West Bank last month.
Israeli Prime Minister Benjamin Netanyahu and President Shimon Peres were among some of the officials attending the ceremony.
Addressing a news conference afterwards, Netanyahu says Israel will not rest until it brings those responsible to justice.
"Whoever was involved in the kidnapping and the murder will bear the consequences. We will neither rest nor slacken until we reach the last of them and it does not matter where they will try to hide. We will reach them all, even if it takes time."
The Israeli government is blaming Hamas for the murders.
Hamas has denied any involvement.
In the fallout from the discovery of the boy's bodies, the Israeli military has been launching strikes on dozens of sites in the Gaza Strip.
The Israeli government is also reportedly considering expanding its attacks against Hamas as the search continues for the suspected murderers, who have been described by the Israeli side as two central Hamas operatives.
Meanwhile, Washington is urging restraint.
White House spokesperson Josh Earnest.
"We encourage Israel and the Palestinian Authority to continue working together in that effort. We are engaged with both sides and continue to urge all parties to refrain from steps that could further destabilize the situation."
The Chinese Foreign Ministry has also made comment on the situation, saying China strongly condemns all types of violent actions against civilians.
And like Washington, Beijing is also asking all sides to remain calm and avoid taking excessive actions.
 
 
ISIL captures Syrian border city near Iraq
 
Sunni militants have reportedly captured an eastern Syrian city on the border with Iraq.
The London-based Syrian Observatory for Human Rights says the Islamic State of Iraq and the Levant, which is now just calling itself Islamic State, has seized the city of Boukamal.
This follows days of intense fighting along side the al-Qaeda-linked group known as the Nusra Front.
The new offensive comes just days after the militant group declared the establishment of a caliphate, or Islamic state, in areas under its control in Iraq and Syria.
In a newly-released audio message, the leader of the militant group, Abu Bakr al-Baghdadi, says it is the duty of all Muslims to immigrate to the "Islamic State".
"We call on Muslims clerics, scholars, doctors, engineers, military personnel and fighters to join the Muslim Umma and to avenge wrongs committed against Muslims worldwide."
While the Sunni advance is plunging Iraq into its worst crisis in years, lawmakers in Baghdad have failed to agree on electing a new speaker.
Several Sunni and Kurd lawmakers walked out of the first meeting of the parliament on Tuesday.
Acting parliamentary speaker Mehdi al-Hafidh is calling on lawmakers to confront the crisis.
"The security setback that has beset Iraq must be brought to a stop, and security and stability have to be regained all over Iraq, so that it can head down the path in the right way towards the future."
Meanwhile, the last group of the Chinese workers trapped at a power station in Iraq is heading back to China.
The group is among the 12-hundred employees of the China Machinery Engineering Corporation who were evacuated from the northern Iraqi city of Samarra in the early days of the insurgency.
There are still around 10-thousand Chinese nationals still in Iraq.
Most of them are said to be in safe areas.
 
 
Putin says sustainable peace in Ukraine cannot lead through war
 
Russian President Vladimir Putin is describing the end of the ceasefire in eastern Ukraine as "unfortunate."
Putin has made the comments following a decision by Ukrainian President Petro Poroshenko to renew military operations in the country's embattled east.
"Unfortunately, President Poroshenko has made a decision to resume a military operation. And we were not able - when I say "we" I mean both myself and my European colleagues - we were not able to convince him that the road to sustainable, solid and lasting peace cannot lead through war."
The end of ceasefire comes despite attempts by the leaders of Ukraine, Russia, France and Germany to cobble together a lasting peace agreement.
Putin also says Moscow will continue to defend the interests of ethnic Russians abroad.
At the same time, UN Secretary-General Ban Ki-moon is also expressing "extreme disappointment" at the resumption of military action in Ukraine.
Secretary-General spokesperson Stephane Dujarric.
"He renews his call on all sides in Ukraine to not give up the idea of a functioning cease fire and work toward a definitive cessation of violence through a continued political and diplomatic process."
Within hours of Poroshenko's announcement, Ukrainian military forces launched assaults on rebel bases and checkpoints, bombarding them from both the air and with artillery.
Four people have reportedly been killed after being shelled in a rebel-held town in Donetsk.
 
 
Xi's visit to S Korea to see deals signed, not to target third party
 
The Chinese and South Korean governments are set to release a joint paper and sign cooperative documents covering areas including economics, trade, finance, the environment and consular affairs as part of President Xi Jinping's upcoming visit to South Korea.
Chinese Vice-Foreign Minister Liu Zhenmin says Xi Jinping will hold talks with President Park Geun-hye and Prime Minister Chung Hong-won.
He's also set to deliver a speech and attend economic and trade events as part of his time in South Korea.
Liu Zhenmin says Xi Jinping's visit does not target any third party.
"During the visit, leaders from the two sides will continue to discuss denuclearization on the Korean Peninsula and the peace process. And they will also exchange views on resuming Six Party talks. Some issues, including denuclearization on the Korean Peninsula and Northeast Asia's peace and stability, can only be resolved through peaceful negotiation. These issues are expected to be on the agenda during the visit."
Chinese President Xi Jinping is set to begin his first trip to South Korea as President tomorrow.
 
 
ROK business communities expect Xi's visit to boost trade
 
Anchor
Ahead of Chinese President Xi Jinping's state visit to South Korea, local business communities are holding out high expectations.
CRI's Qizhi has more.
Reporter
"South Korea's cosmetics are very popular with Asian women. Those I use are very good, so I came here to buy some more."
"I want to buy some clothes for my parents and Korean cosmetics for my colleagues."
The growing number of Chinese tourists travelling to South Korea is helping break business records at local stores.
Data from department store chain Lotte is suggesting purchases by Chinese tourists make up 80-percent of all foreign purchases.
Despite this, Korean businesses are still hoping for more.
The continued negotiation of a China-South Korean free trade agreement is garnering a lot of interest.
Koo Cheon-seo is the head of the South Korea-China Economic Association.
"I think the most important area in the economic cooperation between South Korea and China is the free trade agreement. Though it hasn't been established yet, it is expected the agreement will be signed this year. President Xi Jinping will pay a visit soon, so we hope the leaders will discuss issues connected to the FTA."
Large Korean companies like Samsung and Hyundai have already established a strong foothold in China over the past 20 years.
And with the restructuring of the Chinese economy underway, Koo Cheon-seo says more and more Korean businesses are looking for opportunities in China.
"Recently the Chinese government pin-pointed seven strategic emerging industries, and has been pushing forward a long-term plan toward energy-saving and environmental protection, biotech, new energy and more. I think if China can work closely with South Korea in these areas, exchange technologies, and learn from each other, it will produce strong synergy and more cooperation."
Chun Ka-lim with Hoseo University says there is also room in the Chinese market for smaller South Korean companies.
"In areas like environmental protection, science and technology and new energy, big companies hold the advantage when it comes to money and technology. As such, small and medium-sized are more focused on China's domestic demands and consumers in areas such as agricultural products, household items and cosmetics. As such, I think South Korean firms are more active than other transnational corporations when it comes to investing in China."
China is currently South Korea's largest trading partner and export market.
South Korea is China's third-largest trading partner and the fifth-largest source of foreign investment for China.
For CRI, I'm Qizhi.
 
 
Biz Reports
 
 
Anchor
 First off, a check on the closing numbers in North America and Europe.
Joining me on the desk, CRI's Tu Yun.
Reporter
U.S. stocks rallied on Tuesday, as robust U.S. and Chinese manufacturing data boosted optimism about the global economy.
At the close, both the Dow and the S&P 500 gained around three quarters of a percent.
The tech-heavy Nasdaq increased 1 percent.
On the corporate front,
General Motors shares jumped 3 and half percent, after the car-makers's June sales beat market expectations, despite the announcement this week of another massive recall.
Over in Europe, major European indices all had solid sessions after BNP Paribas shares increased on relief the French banking giant has settled a U.S. sanctions case.
Mining companies also rallied after encouraging economic data from China.
At close, both Britain's FTSE 100 and France's CAC 40 picked up almost 1 percent.
Germany's DAX added nearly three quarters of a percent.
 
 
Shanghai Free Trade Zone cut down on negative list
 
A list banning or limiting foreign investment in the Shanghai Free Trade Zone has been cut down in order to broaden access for foreign investors.
Among the newly freed-up sectors, land development and the real estate sector have been opened up.
Previously, only joint ventures were allowed in these sectors.
The new list scraps the restriction on foreign investment in lotteries and gaming.
The so-called negative list was first published in September, with 190 items listed as restricted.
The list has since been streamlined to 139.
The EU Chamber of Commerce in China is describing the cut down as a step in the right direction.
But the Chamber says the extent of the cuts is slightly lower than the European business community in China had been hoping for.
 
 
Call-in with Ben China-Switzerland FTA takes effect
 
A new free-trade agreement between China and Switzerland has taken effect.
The agreement, which applies a zero-tariff policy to a wide range of merchandise, covers areas including government procurement, employment and intellectual property.
Under the agreement, 99.7 percent of imports from China to Switzerland will be exempted from customs duties, while 84 percent of Switzerland's exports will enjoy the same policy.
Trade between Switzerland and China increased over 125-percent year on year to just under 60-billion U.S. dollars last year.
Switzerland is China's fifth-largest trading partner in Europe.
For more on China's first FTA with a European country, we are now joined on the line by Benjamin Cavender, Principal at China Market Research in Shanghai.
Qs:
1, To an average Chinese person, will this FTA with Switzerland make luxury Swiss watches more affordable? What other ways could this benefit a Chinese consumer? tourism for example?
2, We understand Switzerland is not a EU member country, but China has shown strong interest in entering a China-EU FTA. Could this FTA in any way facilitate a China-EU FTA in the future?
3, It has long been a hot pursuit for Chinese enterprises to seek ways to invest in Europe instead of just shipping cheap products there. Could this FTA help upgrade China's trade patterns with Europe and economic interactions with Europe in general?
Back anchor:
Benjamin Cavender, Principal at China Market Research in Shanghai.
 
 
Finance ministry set to scrap consumption tax on low-end cosmetics
 
China's Finance Ministry is set to scrap the consumption tax on ordinary cosmetics products later this year.
The ministry has determined the tax levied on ordinary beauty products have unnecessarily pushed up consumer prices here in China.
The Chinese government has been levying consumption taxes of as much as 30 percent on cosmetics, including both high-end skincare products and other daily-use products.
Luxury beauty products will still be subject to consumption tax.
The plan will still require the final approval of the State Council.
 
 
Tsingtao tops Chinese beer brands with remarkable overseas sales growth
 
Chinese brewer Tsingtao is now ranked as the world's sixth largest in terms of production and sales.
A new industry report notes the Qingdao-based beer-producer currently exports to 85 countries and regions.
Tsingdao's sales to Northern Europe increased some 20-percent last year.
The same report also notes Tsingdao has seen considerable growth in emerging markets, sales increasing by over 90 percent in Africa last year, and over 70-percent in Eastern Europe.
Tsingdao's overall sales through the first quarter of this year are up almost 20-percent.
 
 
Apple to open 10 more retail outlets in China
 
Apple is set to open 10 more retail stores in China.
The company has already started hiring employees for its new Apple locations in six second-tier cities, including Shenyang, Chongqing and Zhengzhou.
Apple currently has 10 stores on the mainland.
New stores are expected to help Apple retail the new iPhone 6.
Reports have suggested suppliers in China are going to begin mass production of the new mobile phone starting this month.
Apple currently has less than 7-percent of the market in China.
 
 
Trust firm warns of possible default on wealth management product
 
A Chinese trust is warning that it might have trouble paying out on one of its high-yield investment products.
The China Securities Journal is reporting China Credit Trust may face difficulties repaying when the product matures later this month.
The report says the product, which has investments worth some 200 million US dollars, is running into financial problems because a coal miner in northern Shanxi has not been making payments since the second quarter of last year.
China Credit Trust's warning is the latest default alarm that has hit this country's shadow banking system.
Funds raised through the sale of these products typically flow to weaker borrowers that struggle to access bank loans, especially property developers and firms in industries plagued by overcapacity.
 
 
Headline News
 
 
China, S.Korea warn of Japan's military policy changes
 
Both China and South Korea are warning Japan not to hamper regional peace and stability.
The call comes after the Japanese cabinet passed a controversial resolution which will allow Japan to send troops overseas.
The Chinese government is warning this could be a signal the Japanese government is hoping to walk away from its pacifist policies.
The United States is welcoming the move, saying it will make the US-Japan alliance more effective.
However, South Korea, another ally of Washington, is raising concerns, saying Japan needs to act to not hurt regional peace and stability.
In Seoul, protestors have gathered in front of the Japanese embassy, demonstrating against Tokyo's move.
The move has also sparked demonstrations in Japan.
 
 
Anti-Arab violence surges in Jerusalem after murder of 3 Israeli teens
 
Far-right Israeli demonstrators have taken to the streets in Jerusalem in an anti-Arab demonstration.
Israeli police have rescued an Arab teen who became caught up in the demonstration, amid a growing number of anti-Arab incidents being reported in the fallout of the murder of three Israeli teens.
Close to 30 of the demonstrators, mostly teenagers, were arrested.
The discovery of the bodies of the three teenagers who were kidnapped and murdered near Hebron last month has set off a wave of anti-Arab violence in Jerusalem.
The Israeli government has pinned the blame for the murder of the three yeshiva students on the Palestinian Hamas movement.
Hamas has denied its involvement.
 
 
Ebola death toll in West Africa rise to 467: WHO
 
The World Health Organization says sixty-eight of the deaths had been recorded since June 23, as the number of cases had seen a 20% increase.
It is the largest outbreak to affect Guinea, Sierra Leone and Liberia.
The WHO is calling for drastic action to tackle the outbreak.
Health ministers of 11 West African countries will meet in Ghana on Wednesday and Thursday to discuss the growing crisis.
 
 
Former French President Nicolas Sarkozy detained for questioning
 
Former French President Nicolas Sarkozy has been detained near Paris for questioning over suspected influence-peddling.
Investigators are looking into whether Sarkozy, who was president from 2007 to 2012, had promised a prestigious role in Monaco to a high ranking judge, in exchange for information.
Sarkozy's interrogation comes soon after his lawyer, Thierry Herzog, was placed in police custody on suspicion of seeking inside information.
The decision to detain Sarkozy at Nanterre, near Paris, is thought to be the first time a French former head of state has been held in police custody.
The latest developments are seen as a blow to his attempts to stand again for the presidency.
Investigators will be able to hold Sarkozy for an initial period of 24 hours but can extend custody for another day. 
 
 
Newspaper Picks
 
 
THE BEIJING NEWS
Headline
Arrests in oil leak
Summary
Local authorities in Dalian say five people are in police custody following a crude oil spill from a PetroChina pipeline which led to a massive fire this week.
At the same time, officials say the leak has not contaminated the city's drinking water.
The spill itself is now being mopped up.
THE BEIJING TIMES
Headline
Train delay for fallen passenger
Summary
Subway line 13 had to come to an emergency stop yesterday after a pregnant woman fell from a subway platform.
She was rescued by staff.
She's said to be in good condition.
GLOBAL TIMES
Headline
Terror tips
Summary
Chinese authorities have received some 230 reports about online terrorist propaganda.
70 percent of the material they have located are hosted by websites operating overseas.
The State Internet Information office says the sites are used to promote religious extremism, as well as to sell weapons.
THE BEIJING MORNING POST
Headline
Cult leader jailed
Summary
A cult leader has been sentenced to four years in jail in Hubei.
The man is a regional leader for the group calling itself the Church of the Almighty God.
CHINA DAILY
Headline
Arrests in Shaolin monk case
Summary
Seven suspects have been arrested for swindling more than 160-thousand yuan out of tourists at a scenic spot near the Shaolin Temple in Henan.
The seven dressed as Shaolin Temple monks and gave away stones they claimed were auspicious.
Tourists were then asked to give "donations" rid themselves of the bad luck.
SHANGHAI DAILY
Headline
Chongqing flood relief
Summary
The ministries of finance and civil affairs have allocated 50-million yuan for flood relief in Chongqing.
Torrential rains and ensuing floods battered the region last month, killing at least 12 people.
The money will be used for resettlement and basic aide for disaster-affected people. 
 
 
Special Reports
 
 
Kid Band in Beijing
 
Anchor
While most of their classmates watch TV, play computer games or attend extra lessons in their spare time, a bunch of primary school kids from Beijing jam to Jimmy Hendrix. And they have dreams of becoming big... even though they're so small.
Li Dong has the details.
Reporter
Zhiyu is not a typical boy. While most children his age watch TV, play video games and do homework after school, Zhiyu has a different hobby. He plays guitar.
Zhiyu's English name is 'Rain' and he wants to be a musician when he's older. And so does eleven year old Li Zixuan, a drummer...
Lead singer Li Yiyi is eight. Eleven year-old Jin Haoyu is the keyboard player. And eleven year old Zhang Zhenlong plays bass guitar.
All of the children showed musical talent at an early age - and were then encouraged to develop their skills by their parents.
They're trained by Zhiyu's father, Cai Zhendong, who's a professional musician.
"Regarding the band in general, we want them to learn how to better communicate with the audience, so they need to learn more styles. For example, Queen's 'We Will Rock You'. That song can be sung by many people at the same time."
So far the band has been on TV a few times and performed several concerts. While major success has yet to come, that's not for the want of trying as the band practices together at least once a week.
But are the children being pushed too hard?
Lead singer Li Yiyi's mother, Li Chunyan who is an entertainment agent, says the opposite is true.
"I just let Yiyi develop as she likes. All children are different. She has her hobby, and I try to help develop her talents and let her do what she likes to do."
So how much say do the children have in all this?
For his part, lead guitarist Cai Zhiyu says he chooses his own clothes.
"I think I dress like Slash, the guitar player from Gun N' Roses. I think it's cool to dress like him."
Bandmate Li Zixuan says each of them made their own decision about what instrument to learn.
"I saw some other kids playing drums in kindergarten. It looked interesting, so I told my dad that I wanted to learn too."
While the main repertoire may consist of classic rock, like Queen and the occasional Jimmy Hendrix number, Cai Zhendong hopes for more originality in the future.
"Just as a foreigner has to learn Chinese before studying Chinese poetry, we have to learn classic rock if we want to make our own music, because rock music was not born in China. Then we can create our own music."
That may take time. But that's one thing this band has on its side.
For CRI, I am Li Dong.
 
 
Sports
 
 
FIFA World Cup round of 16: Belgium v USA 2-1; Argentina v Switzerland 1-0
 
In this morning's FIFA World Cup,
Belgium is through to the quarter finals of the World Cup after edging the Americans 2-1.
The match finished without a goal through the first 90-minutes, putting it into overtime.
Kevin De Bruyne the broke the deadlock early in the extra fram with a goal in the 93rd minute for Belgium.
Lukaku then added another goal to give Belgium a 2-0.
Julian Green then made it close for Team USA.
However, Holland held on to advance into the quarter finals, where they will take on Argentina, who managed to get past Switzerland 1-nil in the earlier match up this morning.
Di Maria's goal from a Lionel Messi cross came in the 117th minute after their match also ended scoreless through 90-minutes.
Switzerland came close to equalizing in the 120th minute, but substitute midfielder Blerim Dzemaili's close range header hit the post.
----
Off the pitch, the Dutch football association has announced that Nigel de Jong will miss the remainder of the World Cup due to injury.
De Jong suffered a tear in his groin muscle.
The Netherlands will face Costa Rica on Saturday.
----
In other football action,
Botswana beat visiting Tanzania 4-2 in an international friendly on Tuesday.
The two teams are preparing for the next stage of the 2015 Africa Cup of Nations qualifiers starting later this month.
 
 
Chelsea complete signing of Spain international Diego Costa
 
In off-pitch news from Europe,
Chelsea has completed the purchase of Diego Costa from Atletico Madrid.
In making the deal, the English Premier League club has paid a 52-million dollar buyout clause for Costa.
The 25-year old joined Atletico in 2007.
This past season he helped lead the Spanish club to the La Liga title and the finals of the European Champions League with 27 goals.
His purchase follows on the heels of Chelsea this week deciding not to extend the contract of veteran forward Samuel Eto'o.
 
 
Nadal, Sharapova suffer shock defeat at Wimbledon
 
In tennis,
A shock upset in the men's bracket at Wimbledon.
World Number-1 Rafael Nadal has been bounced from the tournament by Australian teenager Nick Kyrgios.
The 19-year old from Canberra, who came into Wimbledon ranked 144th in the world, stunned Nadal in 4-sets, 7-6, 5-7, 7-6, 6-3.
Nadal admits he was outplayed.
"The thing is this surface, when you have an opponent that he decides to serve and to hit every ball very strong, you are in trouble. I think that I didn't play really bad. But that's the game in this surface. I think in the second and the third set I was better than him, but I was not able to convert that opportunities. And for the rest, I think he play better than me. So, in general, talking about what you need to win in this surface, he did the things better than me."
Kyrgios becomes the first man to reach the quarter-finals in his Wimbledon debut in 10-years.
Kyrgios will be up against Canadian Milos Raonic in the last 16, after he dumped Japan's Kei Nishikori in 4-sets.
Fourth seed Roger Federer has also advanced to the quarter-finals, making easy work of Spain's Tommy Robredo 6-1, 6-1, 6-4.
Federer now faces compatriot Stanislas Wawrinka, who defeated Spain's Feliciano Lopez in straight-sets.
----
In the women's draw,
Five-time major champ Maria Sharapova is out after losing a 3-set battle against 9th seeded Angelique Kerber.
The German will now be up against fast-rising Canadian star Eugenie Bouchard in the quarters.
Romanian number three seed Simona Halep is also through after bringing an end to the tournament for Kazakhstan's Zarina Diyas in a straight-sets romp.
Halep will be up against German Sabine Lisicki in the quarters.
----
In the women's doubles competition,
The Chinese duo of Peng Shuai and Su-Wei Hsieh have advanced to the third round after cruising past a pair from Ukraine and Poland in straight-sets.
The defending Wimbledon champs will be up against a 14th seeded pair from France and Hungary.
 
 
NHL free agency opens
 
The off-season free agency window has opened in the National Hockey League.
In one of the biggest moves from Tuesday, the Vancouver Canucks have signed goaltender Ryan Miller to a 3-year, 18-million dollar deal.
Miller became a free agent after finishing last season with St. Louis.
--
The Ottawa Senators have also made a significant move, dealing their captain, Jason Spezza to the Dallas Stars in a 5-player deal.
The Stars have also signed unrestricted free agent Ales Hemsky, who also finished out last season with Ottawa.
--
The Colorado Avalanche have aquired veteran Jerome Iginla in a 3-year deal worth some 16-million dollars.
Iginla spend last season with the Boston Bruins.
--
The Minnesota Wild have picked up free agent Thomas Vanek.
Vanek was traded to Montreal last year and helped lead the Canadiens to the Eastern Conference finals.
 
 
Kyrie Irving signs 5 year contract extension with the Cleveland Cavaliers
 
In off-season NBA news,
Free agency in the NBA has officially opened.
The Cleveland Caverliers didn't waste anytime once the window opened.
The Cavs have signed a 5-year contract extension with Kyrie Irving.
The deal is said to be worth around 90 million US dollars.
But the deal can't be signed until July 10, after next season's salary cap has been set.
Other names to watch on the free-agency front include LeBron James, Dwyane Wade and Chris Bosh.
The Miami-trio are also being joined on the market by veterans Paul Pierce, Dirk Nowitzki and Pau Gasol.
 
 
Spain, Lithuania name squads for FIBA World Cup
 
In other basketball news,
Spain has announced its 12-player line-up for this year's World Cup.
The host squad will have six players from the NBA and six from Spain's domestic Liga ACB.
Spain took the silver medal in the 2012 London Olympics, after losing an exciting final to the United States.
This year's Basketball World Cup gets underway in Spain at the end of August.
 
 
Entertainment
 
 
Break-up Guru Stuns in its Opening Week
 
(trailer)
"The Break Up Guru" both starring and directed by famous Chinese actor Deng Chao, grossed over 180 million yuan, or 20 million US dollars, at box offices in during its opening weekend.
The movie has enjoy a high attendance rate domestically and overseas. Many theatres have added extra show times and screened the film in bigger rooms to accommodate the high turnout.
Deng Chao's directorial debut has been met with praise online by Chinese movie-goers, with many marveled at Deng's skill behind the camera.
"The Break Up Guru" tells the story of Mei Yuangui, a self-proclaimed master of creating a break-up, who encounters a woman, played by the popular mainland actress Yang Mi, that challenges his preconceived notions of love.
 
 
Aus. PM Tony Abbott Responds to Rolf Harris Verdict
 
Australian Prime Minister Tony Abbott says he is "gutted and dismayed" that television entertainer Rolf Harris has been convicted of 12 counts of indecent assault.
During a radio interview with the Australian Broadcasting Corporation on Tuesday, Abbott had this to say:
"This person, who was widely admired, seems to have been a perpetrator. So, so look - I feel gutted and dismayed, but it's very important that we do everything we humanly can to protect vulnerable young people."
Harris, known to generations of children in Britain and Australia for his friendly screen presence, was found guilty of 12 counts of indecent assault on four victims aged 19 or younger that took place from the 1960s to the 1980s.
The judge has said Harris should expect prison time when he is sentenced on Friday.
Harris was well-loved in Britain, and performed once with the Beatles.
He is one of several veteran entertainers in the UK to face sex charges since TV host Jimmy Savile was exposed as a serial child molester after his death in 2011.
 
 
Adam Richman's New Show Postponed Over Instagram Comments
 
The Travel Channel is indefinitely shelving the July 2 series premiere of Man vs. Food star Adam Richman's new show, "Man Finds Food" following the host's insulting comments on Instagram.
The channel has not revealed any details on whether or not it will air the show.
Richman took to Facebook to address the postponement, writing that he is still waiting for an airing date and that his fans should stay tuned.
Last month, Richman earned the outrage of the internet after writing a series of insults on Instagram, responding to fans that criticized him for using the hashtag #thinspiration.
"Had ordered this suit from a Saville Row tailor over a year ago. Think I'm gonna need to take it in a little…#thinspiration" the message read.
When Instagramers called foul on Richman for using the hashtag — which is commonly used in pro-anorexia rhetoric –Richman fired back.
The TV host told one Instagram user to commit suicide.
"Grab a razor blade and draw a bath, I doubt anyone will miss you," he posted.
He used multiple expletives in a message to another user before ending with: "if my hashtag offended you, it was unintentional and for that, I'm sorry."
Richman later deleted the incendiary messages and issued an apology.
"Yes. I've responded to internet hate recently with vile words directed at those hating me," he wrote. "I am sorry, I should know better & will do better."
 
 
Robin Williams Checked into Rehab
 
American actor and comedian Robin Williams has checked into a rehabilitation facility.
However, the actor, who has been sober for some time, has not relapsed, a source told the American Broadcasting Company.
"After working back-to-back projects, Robin is simply taking the opportunity to fine-tune and focus on his continued commitment, of which he remains extremely proud," a rep for the actor told ABC News.
Williams, 62, once told "Good Morning America" that he struggled with alcoholism and cocaine abuse in the early '80s, but quit after his friend John Belushi overdosed in 1982. Then, after beginning to drink again in 2006, he sought professional help.
The source told ABC News that this trip has been long-planned, and Williams has already completed most of it. The actor plans to return home soon.
 
 
 
That’s it for this edition of the Beijing Hour.
A quick recap of headlines before we go.
Both China and South Korea are issuing warning about the Japanese government's new military policy.
Funerals have been held for three Israeli teenagers murdered last month.
New reports are suggesting Sunni insurgents have captured another city along the border between Syria and Iraq.
In Business.... the negative list for the Shanghai Free Trade Zone has been pared down.
On behalf of the Beijing Hour staffers, this is Paul James in Beijing hoping you'll join us for our next edition of the Beijing Hour to open a window to the world together.