The Beijing Hour
Evening Edition
Shane Bigham with you this Wednesday, June 18th 2014.
Welcome to the Beijing Hour, coming to you live from the Chinese capital.
Coming up on the programme this evening,
China's premier continues his trip in the UK, overseeing the signing of billions of dollars in new business deals in London.
high-level meetings are underway in Hanoi between Chinese and Vietnamese officials, trying to sort out strained relations between the two countries.
and Ukrainian officials say Russia continues to support militants who want to break away from Kiev.
In business, China is cutting its value-added tax rate.
In sports, Spain digs a hole early at the World Cup.
In entertainment, The Breakup Guru is screened at the Shanghai Film Festival.
Weather
Beijing will be overcast tonight with a low of 20 degrees Celsius. Thundershowers tomorrow with a high of 28 degrees.
Meanwhile Shanghai will be cloudy tonight, with a low of 22, overcast tomorrow, with a high of 28.
Chongqing will be cloudy, 24 degrees the low, cloudy tomorrow with a high of 33.
Elsewhere in the world, staying in Asia
Islamabad, cloudy with a high of 39.
Kabul, sunny, 32.
Over in Australia
Sydney, mostly sunny, high of 19.
Canberra, partly cloudy, 14.
Brisbane, partly cloudy, 23.
And finally, Perth will have rain with a high of 19.
Top News
British and Chinese premiers call for strengthened bilateral trade
ANCHOR:
Visiting Chinese Premier Li Keqiang has had a fruitful day in London, inking multi-billion-dollar deals and pledging further cooperation with his British counterpart, David Cameron.
The two sides have signed trade and investment deals worth over 30 billion dollars, covering areas in finance, technology, education, energy and infrastructure.
Both sides have also set a goal of expanding bilateral trade to 100 billion U.S. dollars by 2015.
CRI's Yu Yang has more.
Reporter:
As part of his time in the UK, Chinese Premier Li Keqiang has met with British Prime Minister David Cameron.
The two have overseen the signing of trade deals worth billions.
Li Keqiang has also used the meeting to call for more cooperation in areas such as nuclear power, high-speed rail, infrastructure construction and urbanization.
"The UK has advanced technology that can be married with China's vast markets. Together we can create huge energy."
He also says the two countries need to increase their financial cooperation.
Li Keqiang says this should include facilitating the direct trade of the renminbi and the British pound, as well as setting up an RMB clearing bank and opening branches of Chinese banks in Britain.
For his part, British Prime Minister David Cameron says his country can act as a facilitator to help China gain a stronger foot-hold in Europe.
"As members of the European Union, we have been pushing very hard for the European Union to start work on a free-trade agreement with China. That was very much something Britain put on the table before any other country. We're a big supporter of free trade. We believe that can unlock growth, investment and jobs for people in China and for people in Britain. And we think that's been a very important push for the British to make."
Cameron also says Britain welcomes more Chinese investment in Britain, as well as more Chinese students studying in the UK.
This year marks the 10th anniversary of China and the UK signing a comprehensive strategic partnership agreement.
For CRI, this is Yu Yang.
Chinese State Councilor meet with Vietnamese officials
Chinese State Councilor Yang Jiechi has met up with Vietnamese officials in Hanoi.
It is the highest level meeting between the two governments since tensions began escalating over oil drilling near the Xisha Islands in the South China Sea.
Yang is meeting with the Vietnamese Deputy Prime Minister and Foreign Minister.
"China and Vietnam relations are experiencing a difficult period. On this trip, as appointed by our Central Committee, I am to discuss candidly and thoroughly with Foreign Minister Pham Binh Minh the two countries' relations and current issues in the South China Sea."
The Chinese State Councilor also says China is willing to work with Vietnam to push their comprehensive strategic cooperative partnership to progress steadily.
But he stresses that Vietnam should stop disruptions against China's normal operation near Xisha Islands for now and refrain from creating fresh disputes.
Yang Jiechi stresses that Xisha Islands are inherent territory of China and there are no disputes in the area.
The Chinese diplomat is also expected to meet with Vietnam's Prime Minister Nguyen Tan Dung and President Truong Tan Sang later today.
Iraq's largest oil refinery shut down
Iraq's largest oil refinery has been shut down after Sunni militants launched an attack on the refinery some 250 kilometers north of the capital Baghdad.
Hundreds of gunmen, including militants linked to the Islamic State in Iraq and the Levant started the attack on the refinery late Tuesday night.
The attack continues today, with fighters targeting it with mortar shells.
It is reported one of the mortar round hit a fuel storage tank.
The refinery accounts for more than a quarter of the country's entire refining capacity.
Earlier, the militants overran the city near the refinery, as well as large parts of the Sunni province of Salahudin.
Sunni and Shiite leaders in the country have appeared on national TV and called for citizens to unite together.
Qubad Talabani is the Minister for Coordination.
"The situation is tense. It is potentially grave in many parts of the country. South of Kurdistan there is conflict. There are major tensions. We are watching very closely what's going on and we're very concerned about what we're seeing."
The Iraqi government says it has recaptured the citadel in the strategic town of Tal Afar, which lies between Mosul and the border with Syria.
Prime Minister Nouri al-Maliki has already fired four army commanders for failing to halt the advance of the militants.
The U.S and Iran have both said they will cooperate against the insurgents.
The U.S. pulled all of its troops from Iraq in late 2011 and has ruled out sending them back.
For a closer look at the humanitarian situation in Iraq, earlier I talked to Saleh Dabbakeh, Communication Delegate Spokesman of the International Committee of the Red Cross in Baghdad
…
BACK ANCHCOR: That's Saleh Dabbakeh, Communication Delegate Spokesman of the International Committee of the Red Cross in Baghdad.
Ukraine government blames Russia for continuing support of armed separatists in eastern regions
Ukraine's government says Russia continues to support armed separatists in Ukraine's restive eastern regions.
Ukrainian Foreign Ministry spokesman Eugene Perebiynis.
"On Russian territory, groups of so-called volunteers are being organised. For example, they are preparing for invasion in Ukraine. Most countries and international organisations not unreasonably place responsibility for the escalation of the conflict in eastern Ukraine on Russia. The conclusive evidence is that weapons, soldiers and military vehicles continue to come to Ukraine from Russian territory with assistance from its authorities."
He also says that the Ukraine has sent an official note to Russia demanding immediate cessation of their support for terrorists with military equipment and other staff deliveries.
Russian leaders have been denying the allegations.
The deadly conflict in eastern Ukraine between pro-Russian separatists and the government in Kiev has been raging for nearly two months.
One Ocean Conference Held in Washington D.C.
Anchor:
More than 400 government officials and oceanic scientists from more than 80 different countries are gathered in Washington D.C. to work on a global strategy to save the world's oceans.
CRI's He Fei has the details.
Reporter:
U.S. Secretary of State John Kerry calls for the world's awareness on the health of the ocean and a global strategy to save the planet's life-sustaining seas.
He makes the remarks at the "Our Ocean" Conference, which is the first of its kind held by the U.S. State Department.
"Over the next two days, let's put our heads together and work on a plan for how we can preserve fish stocks, manage coastlines, and protect ecosystems, a way for us to try to preserve fisheries, a way for us to come to a common understanding of our common interests and find a consensus that we could take to the UN."
John Kerry describes the protection of the world's oceans as a vital security issue for everyone, every nation.
The top U.S. diplomat stresses that nations have to come together around a single comprehensive, global ocean strategy so that people can meet this challenge and save the deteriorating blue ocean.
Heads of governments, as well as ministers from some 80 countries, gathered with researchers and experts from the oceanic related industries in Washington D.C..
Liu Cigui, head of China's State Oceanic Administration is also in attendance and joins the panel discussion on the ocean health and science.
Liu says China has around three-million kilo square kilometers of sea area and to build a powerful marine nation has been a goal of the central government. The blue economy has been seen as a new source of the country's economic growth.
The administrator says, in addition to the traditional industries such as fishing, breeding and shipbuilding, China is moving in the direction of more modern developments.
"The development and utilization of China's marine resources will transfer to the high-end manufacturing and modern service industries. We also have the potential of developing the marine biology and marine pharmaceutical industries."
According to Liu, China and the U.S. worked closely in the field for the past decade. The two sides collaborated on many aspects, including ocean monitoring, disaster reduction and prevention, and research data sharing.
During the two-day meeting, China is looking to step up cooperation with the U.S. and other nations and will share its experiences in protecting the marine environment as well.
Recently, China's view on the ocean has been under the spotlight worldwide.
Chinese Premier Li Keqiang is going to visit Greece later this week to attend a China-Greece Maritime Cooperation Forum.
There, he is due to elaborate on China's stand in this field.
Liu Cigui reveals that more marine time cooperation agreements between China and Greece are expected to be signed by then.
For CRI, I'm He Fei in Washington D.C.
Commercial vessel joins Chinese ship to map ocean floor in search for MH370
An Australia-contracted survey ship has joined Chinese efforts to map the sea floor ahead of the deep water search for the missing Malaysian airliner that is due to commence in August.
The Fugro Equator is joining Chinese navy ship Zhu Kezhen in surveying a defined search area of the south-west Indian Ocean.
The search area is based on new satellite data from British satellite firm Inmarsat.
The survey by the two ships will give officials a better understanding of the ocean floor and help them choose the best search vessels.
35 still missing in boat sinking accident in Malaysia
35 people are still missing after a wooden boat carrying 97 Indonesians sank off the western coast of Malaysia.
Malaysian officials say two people are dead and 60 others, including women and children, have been rescued.
The vessel sank in windy weather and tough waters.
According to Malaysian authorities, the passengers are illegal migrants working in Malaysia.
Rescue efforts are continuing.
China's property market expected to continue cooling trend/Michael 16020
ANCHOR:
China's property market is expected to continue its downward trend as official figures show new home prices in dozens of major cities have dropped.
CRI's Li Dong has the details.
Reporter:
National Bureau of Statistics data for May shows that 35 cities saw month-on-month drops in new home prices last month, compared to just eight cities in April.
Only 15 cities saw month-on-month increases in May, substantially down from 44 in the month prior.
The average home price in the 70 cities surveyed slipped 0.15 percent from the previous month, marking the first drop in more than a year.
Prices in Hangzhou, east China's Zhejiang province, dropped the most, down by 1.4 percent.
Zhang Dawei, director of Beijing Zhongyuan Real Estate, says the downturn of the real estate market nationwide is inevitable.
"The property industry is accelerating the transition from the previous sellers' market to a buyers' market, including in first-tier cities like Beijing. Sufficient supply of primary property and other factors are affecting the market with great speculation. So I think the downturn of the property market is irreversible. The home price decline in 35 cities is just the beginning of such a trend."
The NBS data show the highest month-on-month price increase was 0.3 percent in the central Chinese city of Zhengzhou, while the price in Beijing increased 0.2 percent, faster than the growth-rate in April.
For existing homes, prices declined in 35 cities month-on-month in May, compared to 22 cities in April.
Zhang Dawei adds that home buyers are starting to take a wait-and-see attitude amid uncertain market prospects, prompting developers to slow down investing in and initiating new projects.
"Developers in both third and fourth, and in first and second tier cities as well, are facing great pressure from their property reserves. This will result in the drop of property prices to some extent. The transaction volume is also expected to decline after June if there is no supportive policy or other market incentives."
Real estate investment directly affects about 40 other business sectors in China, from steel and cement to furniture. It's a crucial driver of economic activity.
For CRI, I am Li Dong.
17 killed in arsenal explosion in central China
Seventeen Chinese servicemen have been killed in an arsenal explosion in Hunan province.
The accident occurred in Hengyang City as soldiers are piling up ammunitions.
Further details are not yet available.
China receives surging charitable donations in 2013
China received surging charitable donations last year, with non-governmental organizations raising the lion's share.
Official figures show a total of 56.7 billion yuan or 9.2 billion US dollars of donations were received in 2013.
NGOs with charitable status raised 46 billion yuan in money and goods.
There were some 547,000 NGOs across China by the end of 2013, increasing by 9.6 percent from the previous year.
Biz Reports
Stocks
Anchor:
First off, a check on the closing numbers across Asia.
Joining me on the desk, CRI's Ding Lulu.
Reporter:
Asian stocks drifted lower as investors awaited an update on the U.S. economy later Wednesday from the Federal Reserve following its two-day policy meeting, while Japanese markets rose on a weaker yen.
Equity investors have been holding back this week as they look ahead to the Fed's meeting and its implications for the economy. The US central bank is expected to update its forecasts for the world's biggest economy and scale back economic stimulus another notch. It's less certain whether policymakers will give any hints on when they want to start raising short-term interest rates from record lows.
When the market closed, Shanghai stocks dropped today after the real estate sector was hit amid concerns a property slowdown would hurt economic growth.
The benchmark Shanghai Composite Stock Index fell half a percent.
The Shenzhen Component Index also closed half a percent lower.
Hong Kong's Hang Seng trimmed 0.1 percent.
Japan's benchmark Nikkei 225 rose 1 percent as the dollar strengthened 0.1 percent against yen. A weaker yen makes the cars and electronics made by the country's export giants less costly for overseas buyers.
South Korea's Kospi shed 0.6 percent to at 1,989.34 while Hong Kong's Hang Seng was flat at 23,184.42. In mainland China, the Shanghai Composite Index lost 0.5 percent to 2,055.78.
Singapore's Straits Times Index added 0.1 percent.
Australia's ASX slipped 0.3 percent.
China to cut VAT
China is to lower its value-added tax rates on some goods to three percent, down from between 4 and 6 percent.
The move aims to ease the tax burden on businesses and boost economic vitality.
According to the Ministry of Finance, the new rate will apply to tap water, some construction materials, and electricity produced by small hydropower plants.
Meanwhile, duty-free goods sold at authorized shops will be subject to a 3-percent rate instead of 4 percent.
The new rate will be effective as of July 1.
CCB authorized as yuan clearing bank in London
China's central bank has authorized China Construction Bank to be the clearing bank for renminbi businesses in London.
The PBOC made the decision in accordance with a memorandum of understanding (MOU) it signed with the Bank of England in March.
The MOU covered renminbi clearing and settlement arrangements in London, aiming to facilitate the use of yuan by banks and other firms in international transactions.
China Construction Bank is the country's second-largest commercial bank.
China starts direct yuan-sterling trade
China's central bank has announced the start of direct trading of the yuan against the sterling.
The announcement comes as Chinese Premier Li Keqiang is in the UK for a three-day visit.
The People's Bank of China says the movd "is good for forming a direct exchange rate between the renminbi and the British pound and reducing exchange costs for market players."
The PBOC has also vowed to give "active support" for yuan-sterling direct trading.
Earlier this year, China allowed direct domestic trading of the yuan against the New Zealand dollar to encourage such trading as it internationalizes the Chinese currency.
CNOOC, BP sign 20-year LNG supply deal
Anchor:
The China National Offshore Oil Corporation has announced its entered into a 20-year deal with British Petrolium for liquefied natural gas supplies.
CNOOC says BP is going to begin supplying it with up to 1.5 million tones of liquefied natural gas per year starting in 2019.
The signing of the agreement has been overseen by visiting Chinese Premier Li Keqiang and British Prime Minister David Cameron.
At the same time, the Chinese oil company and Shell have signed a "global strategic cooperation agreement" meant to try to create a tighter partnership around the world.
For more on this, CRI's Paul James spoke earlier with Benjamin Cavender, associate principal at China Market Research in Shanghai.
…
Back Anchor:
That was Benjamin Cavender, Associate principal at China Market Research in Shanghai
China's sovereign fund mismanaged some investment
China's top auditor says that China's sovereign wealth fund mismanaged some of its overseas investments between 2008 and 2013, leading to losses.
The National Audit Office did not specify the size of the loss.
The top auditor's report says some employees in China Investment Corp did not conduct adequate due diligence before investing in 12 overseas projects in the last six years.
In addition, several CIC units within China, such as Central Huijin and a few others, were also found to have irregularities.
These include breaking away from their core businesses and venturing into the real estate sector, and funding illegal property projects.
Created in 2007, the CIC is tasked with helping China invest its near four trillion dollars of foreign exchange reserves.
Muji reaches strategic partnership deal with Alibaba
Japanese retailer Muji has reached a strategic partnership with Alibaba's B2C site Tmall, enabling it to introduce more tailor-made products to Chinese online shoppers.
Muji will also collect information and feedback from users for product design through Tmall in the future.
Alibaba is stepping up efforts to collaborate with multinational retailers and brands to build up its influence ahead of an initial public offering in the US later this year.
Besides Muji, Tmall has also partnered with other brands including Burberry, Estee Lauder and ASOS.
India's Modi government takes steps to control inflation
India's new government has imposed export restrictions on certain farm commodities and ordered a crackdown on hoarding to control rising food prices.
The move came a day after wholesale price inflation hit a five-month high.
A jump in prices for potatoes and onions last month drove inflation to 6 percent from around 5 percent in April, contributing to a sell-off in financial markets.
Indian Prime Minister Narendra Modi has made tackling inflation his top priority.
India has stockpiles of staples like rice, wheat and sugar that can be released. But the government has limited means to control surges in the cost of fruit and vegetables, which have the largest impact on food inflation.
Headline News
China, UK pledge to advance all-round pragmatic cooperation
Visiting Chinese Premier Li Keqiang has had a fruitful day in London, inking multi-billion-dollar deals and pledging further cooperation with his British counterpart, David Cameron.
The two sides have signed trade and investment deals worth over 30 billion dollars, covering areas in finance, technology, education, energy and infrastructure.
During their meeting, Li and Cameron pledged to deepen all-round pragmatic cooperation and inclusive development while celebrating the two countries' decade-old comprehensive strategic partnership.
The Chinese premier proposed that China and Britain expand two-way trade to reach a target of 100 billion dollars by 2015.
Earlier, Premier Li and his wife met with Queen Elizabeth II and discussed ways to boost cultural exchanges.
Chinese State Councilor meet with Vietnamese officials
Chinese State Councilor Yang Jiechi has met up with Vietnamese officials in Hanoi.
It is the highest level meeting between the two governments since tensions began escalating over oil drilling near the Xisha Islands in the South China Sea.
Yang Jiechi says China is willing to work with Vietnam to push their comprehensive strategic cooperative partnership to progress steadily.
But he notes that Vietnam should stop disruptions against China's normal operation near Xisha Islands for now and refrain from creating fresh disputes.
Yang Jiechi stresses that Xisha Islands are inherent territory of China and there are no disputes in the area.
Sunni insurgents attack Iraq's major oil refinery in Baiji
Sunni militants have attacked Iraq's largest oil refinery, located in the northern central province of Salahudin.
Police sources say hundreds of armed fighters attacked the refinery compound at dawn.
Fierce clashes in the area continue.
militants who attacked the refinery are said to include members of the Islamic State of Iraq and the Levant, a group affiliated to al-Qaeda.
The security situation in Iraq began to deteriorate about a week ago after militants overran the city of Mosul.
Most government troops appear to have abandoned their posts and fled.
15 Turkish citizens kidnapped in northern Iraq
Iraqi militants have kidnapped another 15 Turkish citizens working in a construction site near Kirkuk in northern Iraq.
Suspected ISIL militants raided the construction site of a hospital and kidnapped about 60 foreign workers from countries including Pakistan, Bangladesh, Nepal and Turkmenistan.
Last week, 80 Turkish citizens including embassy staff in Mosul were taken by militants.
Rescue efforts are still underway.
Blast hits Nigeria World Cup TV venue
An explosion has torn through a venue in a northeast Nigerian town where fans had gathered to watch a World Cup football game.
Residents in Damaturu of Yobe state say a suicide bomber in a tricycle taxi detonated the explosives as people watched Brazil's match against Mexico.
Several are believed to be killed and many more wounded.
An emergency has been declared in three states including Yobe amid attacks by suspected Boko Haram militants.
Newspaper Picks
China News Service
"Jack Ma invites Bill Gates to dinner for charity funds consultation"
Bill Gates, co-chair of the Bill & Melinda Gates Foundation, said on his Twitter account that he met with Jack Ma, founder of Alibaba, on Tuesday in Beijing to talk about philanthropy.
Ren Zhiqiang, president of Huanyuan Property, revealed on his Weibo account that other Chinese entrepreneurs also attended the philanthropy dinner hosted by Ma.
Ma resigned as Alibaba's CEO last year and announced he would dedicate much of his time to charity work. He took a post on the Nature Conservancy's board of directors and helps kung fu star Jet Li's One Foundation.
On April 24, Ma and Joe Tsai, co-founder of Alibaba, announced they would establish a private foundation. The funds will come from their shares, which is expected to be about 2 percent of the company's equity.
Shanghai Daily
"College students prefer iPhones over other handsets, survey finds"
A nationwide survey found iPhone ranked as the favorite smartphone among Chinese college students, followed by Samsung and Xiaomi handsets.
The survey said college students chose iPhone and Samsung smartphones due to their brand quality, while they liked Xiaomi because it's inexpensive.
Computers produced by Apple were also the most liked by Chinese college students. The tech giant's unique operation system, good design and quality performance were the main reasons cited for Apple's popularity.
The survey, conducted by Shanghai Jiao Tong University, was based on questionnaires completed by more than 12,000 students at 123 colleges and universities in 33 cities across China.
AFP
"Scientists warn of tourism threat to Antarctica"
Antarctic scientists warned Wednesday that a surge in tourists visiting the frozen continent and new roads and runways built to service research facilities were threatening its fragile environment.
Tourist numbers have exploded from less than 5,000 in 1990 to about 40,000 a year. And most people go to the fragmented ice-free areas that make up less than one percent of Antarctica.
A growing number of research facilities are also being built, along with associated infrastructure such as fuel depots and runways, in the tiny ice-free zones.
Scientists say it is these areas which contain most of the continent's wildlife and plants, yet they are among the planet's least-protected.
Most travel by sea, some paying in excess of US$20,000 for a luxury cabin in the peak period from November to March.
Approximately 30 nations operate permanent research stations on the continent.
The Independent
"Top 10 cheapest cities to visit, according to TripAdvisor"
A survey by TripAdvisor has found Hanoi, in Vietnam, is the most affordable city to visit this summer.
The travel website said a night out in Vietnam's capital will cost two people a reasonable 155 US dollars on average.
In comparison, London was the most expensive with an average spend of 530 US dollars for two people all-in for one night.
Special Reports
Key to better China-US film co-production
Anchor:
Industry observers taking part in this year's Shanghai Film Festival are suggesting a number of key issues need to be dealt with to help better establish cooperation among Chinese and US film producers.
CRI's Liu Kun has more from Shanghai.
Reporter:
The red carpet of this year's Shanghai International Film Festival saw a considerable amount of film casts combining actors and actresses from both China and the U.S.
Chinese movie mogul Jackie Chan showed up with American actor John Cusack to promote the yet to be produced 2015 film, "Dragon Blade".
Popular Chinese actress Liu Yifei graced the carpet as the leading actress from China-US co-production, "Outcast". Her American opposite, Nicolas Cage, however, didn't appear.
Ye Ning, Chief Operating Officer of Wanda Media, says to cooperate with and learn from the U.S. is a process that the Chinese film industry has to go through.
"China-U.S. co-production is a stage we must experience. It's a trend and nothing will be able to stop it. China's movie industry is still in a very early stage, so we should be ready to learn from others."
Ye Ning's company has just announced co-production plans with renowned American studio, The Weinstein Company, to make the movie "Southpaw".
Joe Aguilar, head of Drama and TV Department at Oriental DreamWorks, has been dipping his toe in China-U.S. co-production since 2012. Co-founded by American company DreamWorks Animation and Shanghai Media Group, Oriental DreamWorks' ambition is to produce the 3rd installment of "Kungfu Panda".
From his own experience, Joe Aguilar says both sides could benefit from the complementary nature of the partnership.
"We are bringing certain expertise to the process. But what we don't know is what the Chinese audience want, what is the best way to tell the story. And that's what we are looking forward and has been talking to several Chinese partners about cooperating together because we feel like we need their understanding of the market and they need our understanding of professionalism and making quality movies."
Zhang Zhao, chief executive officer of Le Vision Pictures, says he considers the following factors to be crucial.
"Why can cooperating with American film companies be difficult? Because the market model hasn't been established yet. Also, intellectual property and a user system are another two things that hinder the unification of a global market."
Zhang further explains that, at the beginning stage, mutual respect and a certain degree of blind trust are needed from both American and Chinese film companies for progress to be made.
Back anchor:
That is CRI's Liu Kun reporting from Shanghai.
Sports
Iniesta says Spain know how to qualify for the knockout stages of the World Cup
Starting off with the World Cup,
Midfielder Andres Iniesta says Spain know what needs to be done in order to qualify for the knockout stages of the World Cup.
"I feel that we have to leave it behind us (the game against the Netherlands). Now, we have two finals. We experienced a similar situation in the last World Cup. We have to make the best of each to get the two wins and be able to be in the next round. I am confident we can do it because I think we have the squad to succeed."
The world champions lost 5-1 to the Netherlands in their first Group B match.
But Spain also lost its first match of the 2010 World Cup before going on to win the title.
The 5-1 defeat not only means Spain is at the bottom of its group, but its poor goal differential means the team needs to score a lot of goals to ensure it qualifies for the elimination round.
Chile is expecting a resurgent Spanish team when the two squads collide.
The South American players are also aware a win almost gaurantees Spain will be eliminated from competition.
Chile coach Jorge Sampaoli.
"I believe there is never a good time to play against Spain. If we had the chance to play a good game and beat them, put them out of the World Cup? It would be a plus for us as a team. So, motivation opens the way for us. If Spain will play like it is a final to avoid being put out of the World Cup, we'll play like it is a final for qualification."
The match-up is set to kick off at 3 Thursday morning Beijing time.
In other action,
After a 3-1 defeat against hosts Brazil on the opening day of the World Cup, Croatia will be looking to get its first points of the competition against Cameroon.
The match-up is set to kick off at 6 Thursday morning Beijing time.
In the meantime,
Australian midfielder Mark Milligan has suffered a hamstring strain and will miss Thursday's do-or-die World Cup clash with the Netherlands.
His injury means the Socceroos will need to add at least two replacements to the team that lost 3-1 to Chile.
The match-up is set to begin at midnight.
Earlier this morning,
Thanks to a series of impressive saves from their goalkeeper, Guillermo Ochoa, a well-organized Mexico has held the highly-favored World Cup hosts Brazil to a scoreless draw.
Mexico ended Brazil's ten match winning streak.
South Korea earned a 1-all draw with the Russian team.
Belgium came from behind to beat Algeria 2-1.
Miami Heat star LeBron James speaks about loss in the NBA finals and future
In the NBA,
Miami Heat star LeBron James has met with the media in Miami.
James has talked about whether himself, Dwyane Wade and Chris Bosh will remain playing together with the Miami Heat.
"There's a conversation that will be had between the three of us. I think it's only right. I think we've earned that for each other to have a conversation and see what could possibly happen. Obviously I don't know what Dwyane (Wade) right now is thinking. I don't know what Chris (Bosh) is thinking right now. Guys are probably not thinking much of anything."
Meanwhile, The Miami Heat's veteran forward Shane Battier has retired following his 13-year NBA career.
Battier is reportedly set to begin a career as a college basketball analyst for ESPN.
Battier averaged 8.6 points, 4.2 rebounds and 1.8 assists over 977 career regular season games.
It's also been reported that Miami's center Chris Anderson is going to opt out of his 1.5 million dollar contract for next season to become a free agent.
The San Antonio Spurs beat Miami 104-87 on Sunday to win the NBA championship.
San Antonio point guard Tony Parker says he expects teammates Tim Duncan and Manu Ginobili to return next season.
But many observers suspect that Tim Duncan, who is now 38, may have played his last game in the NBA, finishing his career with another NBA title.
Irish Open 2014: Rory McIlroy's clubs go missing on flight
In golf,
Rory McIlroy's preparations for this week's Irish Open in Cork have been disrupted.
His clubs went missing during a flight from the United States.
The Northern Irishman says he still doesn't have his clubs, a day after arriving in Dublin.
The Irish Open is due to tee off on Thursday, with McIlroy attempting to win the tournament for the first time.
Still in Golf,
Tiger Woods has begun to hit full shots in practice as he continues to recuperate following back surgery.
It is expected he may take part in the Open Championship.
The Open is set to begin in a month.
Justin Gatlin sets fastest 100m time of 2014
Justin Gatlin's excellent season has continued at the Ostrava Golden Spike meeting.
The American sprinter - who continues to benefit from the absence of injured world-record holder Usain Bolt - won the men's 100m in a World Leading 9.86 seconds.
Gatlin is the only man to run under 10 seconds.
Gatlin, who won Olympic gold in Athens in 2004, now has the four fastest times of 2014 to his name.
Mike Rodgers and Kim Collins are second and third with times of 10.08 and 10.12 seconds respectively.
Two-time 400m world champion LaShawn Merritt vowed to break the meet's record and has kept his word, winning the men's 400m in 44.16 seconds.
The next World Challenge event is in Madrid on 19 July.
Entertainment
Leonardo DiCaprio vows to donate 7 mln dollars to save ocean
Actor Leonardo DiCaprio has devoted himself to ocean protection.
DiCaprio spoke at the U.S. State Council's "Our Ocean" conference, telling his audience that he has "witnessed environmental devastation firsthand" in the oceans.
Since my very first dive in the Great Barrier Reef in Australia 20 years ago to the dive I got to do in the very same location just two years ago, I've witnessed environmental devastation firsthand. What once had looked like an endless underwater utopia is now riddled with bleached coral reefs and massive dead zones.
The conference coincided with U.S. President Barack Obama's new action against overfishing and environmental damage.
Obama gave a speech at the conference through a video message.
Meantime, DiCaprio pledged to donate 7 million dollars from his foundation in the next two years.
The money is said to be spent on meaningful ocean conservation projects.
"The Breakup Guru" in limited release in Shanghai
Chinese comedy film "The Breakup Guru", or fen shou da shi,(分手大师)has opened in limited release in Shanghai.
Directors Deng Chao and Yu Baimei joined the audience to observe viewers reactions.
Actor-turned director Deng Chao spent a year making the film.
He also took the leading role in the movie, joined by actress Yang Mi.
After the screening was over, he rushed to the stage and said he felt relieved because the theatre was filled with laughter.
Singing duo Yu Quan and singer Zhou Bichang showed up to offer their support.
Yu Quan and Deng Chao also performed the theme song on the stage.
The film will compete with Hollywood blockbuster "Transformers 4".
"The Breakup Guru" will open nationwide on June 27.
"True Blood" stars attend premiere of season finale
HBO's vampire series "True Blood" is coming to an end.
Stars of the show have attended the premiere of the seventh and final season.
A blast of fresh faces made their debut last night, indicating the final season will include a lot of new characters.
Among them is actress Paula Jai Parker.
"Everyone gets to leave with a bang. Everyone gets their final farewell. And it's a beautiful thing. There were so many tears on the set. Me, being a newbie, I vicariously felt every single goodbye. And everyone got their love, everyone got their just exit."
Though the TV version of the show is concluded, fans can still expect another fresh bite, "True Blood: The Musical".
Nathan Barr is now working on the project.
He has written the music for the series' entire seven seasons.
"This was something that I pitched to HBO and Alan Ball, and they were intrigued enough to sort of give me a period of two years to come up with an idea, a pitch, some songs. And then, about a year from now, we'll be presenting that to HBO in a workshop."
Barr says the musical will revolve around Sookie Stackhouse, and it will most likely not involve any of the complicated developments in the later seasons.
The final season of "True Blood" will start airing on Sunday.
Psy brings world cup excitement to SK
South Korean rapper Psy has turned up the mood of thousands of football fans, as the country's national football team played its first match against Russia in the World Cup.
Before the game, Psy performed eight songs, including global hits 'Gangnam Style' and 'Gentleman.'
The event has witnessed the rapper's global influence.
Fans seem to be more motivated by Psy's performance than the football match.
"It was very exciting to watch Psy's performance live, which I only got to see on TV in the past. Coming to the site, people are cheering fanatically, and I am very excited because cheering relieves my stress and it feels like I am having a good exercise."
"I had no thoughts except for watching him. People were taking pictures and I could only focus on Psy. It was so captivating."
"It was awesome, like totally. It was great to see him from the first aisle."
"Everything went away. It was just Psy."
About 20-thousand football fans gathered on the street where a special stage was set up.
That's it for this edition of the Beijing Hour - a quick recap of headlines before we go:
China's premier continues his trip in the UK, overseeing the signing of billions of dollars in new business deals in London.
high-level meetings are underway in Hanoi between Chinese and Vietnamese officials, trying to sort out strained relations between the two countries.
and Ukrainian officials say Russia continues to support militants who want to break away from Kiev.
In business, China is cutting its value-added tax rate.
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