Welcome to the Beijing Hour, coming to you live from the Chinese capital.

Coming up on the program this evening...

The Chinese government is lashing out at Japan amid word its allowing a former leader from Taiwan to travel to the country.

Chinese authorities are moving to reassure the public about new plans for more pension fund investment in the markets.

US authorities have confirmed Turkey will be allowing coalition fighters to launch from an airbase in the country in the fight against the Islamic State.

In the 2nd half of the hour, we'll bring you some of the major stories making headlines in the world of business this week.....

In Sports.... the battle of Milan set to take place tonight in Shenzhen.

And in Entertainment.... the Monkey King has vaulted to the top of the animation box office charts here in China.

All of that coming up in the next hour, but first, just a reminder there are several ways to reach out to us here on the Beijing Hour.

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Top NewsChina strongly protests Japan allowing Lee Teng-hui's entryThe Chinese government is voicing its strong opposition to a move by the Japanese government to allow former Taiwan leader Lee Teng-hui to visit Japan.

A statement from the Chinese Foreign Ministry says the Chinese side is opposed to any individual who engages in Taiwan separatist activities.

The same statement also calls on the Japanese side to respect the One-China policy and refrain from creating a new political barrier between China and Japan.

Lee Teng-hui, who held the position of Taiwan leader from 1988 to 2000 as the chair of the Kuomintang, has long been a vocal proponent of "Taiwan Independence."Severe drought in Liaoning affects crops, drinking water supplyNew analysis is suggesting around 250-thousand people are now short of drinking water in the northeastern Chinese province of Liaoning amid a severe drought which has been gripping the region since the start of this month.

Nearly 400 rivers in the area, along with over 60-reservoirs across the province are completely drained.

Precipitation in Liaoning is the lowest its been in some 60-years.

Forecasters are suggesting the cyclical El Nino effect is aggravating the situation, with high temperatures and dry conditions gripping the area.

Yu Linfeng with Liaoning's Drought Relief headquarters says the situation is becoming worse as the days go on.

"The drought is expanding fast. Initially, we were dealing with around 70-thousand hectares of crop damage on July 8th. Now, that figure is more than 2-million hectares. It should be noted we also had a severe drought last year. This left reservior and underground water supplies at lower levels even before the current drought began."Provincial authorities have already set aside 135-million yuan to deal with the drought relief.

North Korea, which lies south of Liaoning, is reportedly dealing with its worst drought since the country came into being.

Official: Safety a Priority if Pension Fund Allowed to Buy StocksAnchor:

Chinese authorities are moving to try to reassure jittery pensioners that their future will be secure.

This comes amid plans to invest pension funds in more high-yield investments.

CRI's Luo Wen reports.

Reporter:

Li Zhong, spokesman for the Ministry of Human Resources and Social Security, said on Friday that the pension fund will tap into riskier asset investments once top policymakers give the nod.

The remarks come nearly one month after the country issued a draft guideline to widen investment channels for the fund.

It stipulates no more than 30 percent of the fund's total net assets could be invested in stocks and equities.

The official says opinions have been invited among more than 1,000 people about the plan. More than half of them were in favor of the plan.

"Sixty-one percent of voters supported allowing pension funds to invest in the stock market, while 31 percent opposed the proposal. Eight percent of voters chose the not relavent option."According to Li Zhong, the fund currently has assets of around 2 trillion yuan that could be invested.

That means up to 600 billion yuan could go into the stock markets if the plan comes into effect.

Li notes that absolute safety must be guaranteed.

"Pension funds are regarded as the 'lifeline' for retirees. Absolute safety of the pension funds must be guaranteed as our primary consideration."In China, urban employees pay for their pension before retirement and usually get a pension equal to about half of their previous salary.

Figures from the ministry show that outstanding contributions to the fund stood at 3.06 trillion yuan at the end of 2014, while money placed in the fund accounts for roughly 90 percent of the country's total social security fund pool.

But its investments have been limited to low-yielding bank deposits and treasury bonds.

An estimate from Chinese Academy of Social Sciences said the country's pension fund depreciated by nearly 100 billion yuan in the past 20 years, taking inflation into account.

Calls for higher investment returns have grown louder in the face of the country's aging population.

Li Zhong adds that professional institutions will help handle the investments and a diverse portfolio will be designed to offset possible stock losses.

"Pension funds have a diverse portfolio so we should not regard the possible losses in the stock market as the overall losses of the fund assets. There are more than 20 products for pension fund investment. We can divide the assets into safe assets and risk assets based on the risks involved."Li says the draft will be submitted to the State Council, or the cabinet, for a final decision.

According to the draft plan, the fund may also be invested in government and corporate bonds, major national construction projects and leading state-owned enterprises.

For CRI, I'm Luo Wen.

UN Report Hails China Implementing MDGsAnchor:

The Chinese government and the United Nations have issued a new report connected to their work in achieving the Millennium Development Goals, the time-frame for which expires at the end of this year.

CRI's Sophie Williams has more.

Reporter:

This is China's final progress report on the MDGs before the adoption of the post-2015 development agenda later this year.

According to the report, China has seen unprecedented transformational results in accomplishing the vision that was set out by world leaders in New York 15 years ago.

UN Resident Coordinator in China, Alain Noudehou, speaks highly of China's achievements.

"In terms of the poverty reduction for example, more than 400 million people have lived outside the poverty lines between the year of 1990 to the year of 2011. And tremendous progress has also been made in the areas of maternal mortality as well as infant mortality. We have also made tremendous achievement in terms of food security in the country."UN Secretary-General Ban Ki-moon's Special Adviser, Amina Mohammed, says China has set an example for all countries that face population problems.

"We are incredibly impressed in the way which China has approached this. I think it has shown a lot of leadership for many countries who do have issues of population, issues on capacity and institutions."The report also applauds China's efforts in halving the proportion of the population without sustainable access to safe drinking water, actively engaging in South-south cooperation and providing help to over 120 developing countries in their efforts to attain the MDGs.

The MDGs include eight specific goals that range from halving extreme poverty rates to halting the spread of HIV/AIDS and providing universal primary education.

It was signed in the year of 2000 by all 189 UN member states at the time and 23 international organizations.

At Friday's ceremony, Chinese Foreign Minister Wang Yi said in a video message that China has made unremitting efforts to implement the goals.

He added that China will continue a path of peaceful, innovative and green development in the post-2015 development period.

Chinese Vice Foreign Minister Li Baodong reiterated China's commitment to the new global development agenda towards 2030.

"The post-2015 Development Agenda should adhere to the principle of 'common but different responsibility' and diversified development patterns. China will reinforceSouth-South cooperation within the premise of south-north cooperation."World leaders will gather at the United Nations in September to adopt the post-2015 development agenda.

It will guide policy and funding for the next 15 years, beginning with a historic pledge to end poverty.

It also aims to promote peaceful and inclusive societies, create better jobs and tackle the environmental challenges of our time - particularly climate change.

For CRI, I'm Sophie Williams.

Cruise Tourism Booming in TianjinAnchor:

The cruise ship industry in the city of Tianjin are expressing increasing optimism about the port city's potential for tourism amid the continued development of the fledgling Free Trade Zone.

CRI's Guo Yan has more.

Reporter:

In recent years, cruise trips have become increasingly popular in China. Behind the boom is the rapid growth of home ports in the country.

A Beijing resident surnamed Xu traveled to Japan with her family on the cruiseliner "Mariner of the Sea" after setting off from the Port of Tianjin in July.

Xu and her family described the trip as very enjoyable.

"My family first travelled from Beijing to Tianjin where we boarded the cruise ship heading to Japan. It's a big ship with excellent recreational facilities and nice food. The children were very excited. It's our first cruise trip, and we felt great. We will try a longer route in the future."Xu's experience is a typical one in China's cruise tourism market.

Statistics show that people in their 40s account for 80 percent of all consumers in the cruise market. And family trips have become a trend.

The cruise trip market in northern China has grown rapidly in recent years, a phenomenon largely attributed to the development of the home port of Tianjin.

Li Weijie, Deputy Director of the Tianjin International Cruise Home Port, says the port has seen strong growth in its international cruise liner business since it officially began operating in 2010.

"The port has received 55 cruise liners in the past year. And the number is expected to exceed 100 this year. Previously, the difference between the slack season and the peak season was quite obvious. The peak season started around late June and ended by early October. Yet in recent years, the peak season have started one month earlier in June and usually ended towards the end of the year."An increasing number of international cruise giants also seek to gain a chunk of the market by expanding their businesses in the Tianjing Port.

Yang Liang , Marketing Director of the Tianjin International Cruise Home Port, says the port offers many advantages.

"The Tianjin Port shows great strength in offering favorable conditions that can meet the demand of even the world's largest cruise liner. The main building for passenger transport here occupies 60 thousand square meters. The service hall for passengers on the first floor is about five thousand square meters. The service hall, largest of its kind in China, can allow four thousand passengers to pass through at the same time. Also the port boasts a huge potential market."The Port of Tianjin is presented with new opportunities as a Free Trade Zone was established in April.

Operators of the port hope that more favorable policies will be launched to boost the whole industrial chain.

For CRI, I'm Guo Yan.

Beijing Offers Qualified Facilities for Winter OlympicsAnchor:

Heading into next weekend's vote by the International Olympic Committee to choose which city will host the 2022 Winter Olympics, authorities in Beijing are putting on the last push to try to secure the Games.

CRI's Liu Xiangwei has more.

Reporter;According to the Evaluation Report from IOC, Beijing enjoys greater assets in event security and infrastructure than Almaty.

Compared with Almaty which in lack of international flights, Beijing has much more international connections. The new Beijing International Airport will be put into service in 2019. Along with the old one as well as Ningyuan Airport in Zhangjiakou, Beijing can provide the world a variety of choices in air transportation.

Since the competition venues of Beijing 2022 are distributed in Beijing, Yanqing and Zhangjiakou Zones, the transportation between the three areas could be a problem. However, the report has recognized Beijing's quick and efficient transportation. According to Guo Jifu, director of Beijing Transportation Research Center, transportation is ver convenient for the athletes.

"It takes a really short time for athletes to travel from their accommodation to the three zones. It takes only 15 minutes to the farthest venue in Beijing. Besides, thanks to the high speed rail, the traveling time between the three zones has been tremendously reduced."The construction of the inter-city railroad between Beijing and Zhangjiakou is ongoing. This railroad is capable of doing 200-350 kilometers per hour. It takes 20 minutes from Beijing North Railway Station to to reach Yanqing and one hour to reach Zhangjiakou.

As for accommodation, Beijing can offer over 40,000 hotels, including world-class star-rated hotels, budget hotels, Chinese traditional courtyards and holiday resorts. In comparison, Almaty has to struggle to build another 16,000 hotel rooms, which will also be much more expensive than Beijing.

Zhang Jiandong, vice president of Beijing 2022 Olympic Winter Games Bid Committee, tells us that the amount of accommodations offered by the three zones far exceeds the top requirement for the Games.

"At present, the Beijing, Yanqing and Zhangjiakou Zones have a total of 576 star-rated hotels with 116,368 rooms. By 2022, the total number of star-rated hotels will reach 608 with nearly 130,000 rooms. This is fully capable of meeting the needs of Beijing 2022."In addition, Beijing is equipped with high capability medical security, which can guarantee medical services for both local residents and the Games at the same time.

Back Anchor:

CRI's Liu Xiangwei reporting.

Turkey Agrees US to Launch Airstrikes against IS from Base in TurkeyThe U.S. State Department has officially confirmed the Turkish government is going to allow US planes to launch air strikes against Islamic State targets from an air base in Turkey, which lies near the Syrian border.

This follows a telephone discussion between US President Barack Obama and Turkish President Recep Tayyip Erdogan.

US State Department spokesperson Mark Toner says the opening of the air base is part of a broader-based agreement.

"So from that we've decided to deepen that cooperation and that includes a train and equip program, intelligence sharing and operational coordination. So as part of that I can say that Turkey has granted clearance for the deployment of manned and unmanned aircraft from the US and other coalition members participating in air operations against ISIL."The new deal ends a long-time reluctance by the Turkish government to become engaged in the fight against the Islamic State.

Turkish President Recep Tayyip Erdogan is also calling on Islamic State forces to give up their fight or -quote- "face consequences.""These are the steps against our national security. Our state and government will take needed action against any attack no matter (what) it is. It is not only for last night. We will take the necessary precautions for our nation's security and peace. Last night was the start of this. And we will keep going on the same way."Turkey's government has launched a series of air raids against Islamic State forces this week.

They come on the heels of a terrorist attack linked to the Islamic State in southwestern Turkey on Monday which left over 30-people dead.

Louisiana Theater Shooter Gets Gun LegallyLouisiana officials have confirmed the man who opened fire this week in the city of Lafayette did acquire his firearm legally.

Lafayette Police Chief Jim Craft says the shooter, identified as 59-year-old John Houser, purchased the handgun at a pawn shop in the neighboring state of Alabama.

"The weapon is a high point, forty caliber semi-automatic handgun. The weapon was purchased at a pawn shop in Phoenix, Alabama in February of 2014. ATF has informed us that the purchase was legal."Police have also confirmed earlier reports Houser had a history of mental illness and had railed against the US government online.

Houser opened fire in a crowded theatre on Thursday evening, killing two women and injuring 7 others before turning the gun on himself.

Five of the victims are still in hospital.

One remains in critical condition.

It's still unclear at this point what Houser's exact motivation may have been.

The shooting has taken place at the same time a jury in the US state of Colorado began deliberating on whether or not to sentence James Holmes to death for the 2012 mass shooting in a movie theatre in suburban Denver.

That attack left 12 dead and some 70 others injured.

Los Angeles Police Kill a GunmanPolice in Los Angeles are dealing with an officer-related shooting.

Witnesses say an officer shot and killed a man said to be waiving a gun in the air in a busy shopping area around Studio City in the Hollywood-area of LA.

"I was in the Starbucks and I saw them congregate around the individual who appeared to have a gun and I had heard, right before I had stepped out from the back end of the Starbucks, that he had fired some shots in the air. There was some noise and some interference, it sounded like police had ordered him to drop the gun. He didn't comply and he was shot twice immediately and I saw him go back."The Los Angeles Police Department has yet to make an official comment on the incident.

The LA Fire Department is describing it as a "single-victim shooting."Witness reports are suggesting the incident may be a 'suicide-by-cop' scenario.

The victim reportedly waited for police to arrive before firing off rounds from his weapon.

NASA Reveals New Images of PlutoA new set of photos of Pluto have been released by NASA.

The new photos include more detailed images of Pluto's southern end, Tombaugh Regio.

This is the area of the dwarf planet which has been nicknamed 'The Heart,' after its shape.　At the same time, new analysis of Pluto's atmosphere has also been released.

NASA researcher Michael Summers says they now have a working-theory as to why Pluto's surface appears to be red.

"Those haze particles are chemically processed to produce what we call tholins, which are chemically altered hydrocarbons that have a red colour. And we think that that is how Pluto's surface got its reddish hue."New Horizons is due to beam back photos of Pluto's largest moon, Charon, as well as pictures of its 4 smaller moons.　All the data from the Pluto fly-by is expected to make it back to earth toward the end of next year.

World's first malaria vaccine gets the green light from European drug regulatorsAnchor:

The world's first vaccine for malaria has been approved by European drug regulators.

This brings the vaccine a step closer to a global release, after almost 30-years of research.

CRI's Poornima Weerasekara on some of the hurdles researchers will still face moving forward.

Reporter:

Malaria is one of the biggest killers of children in the world, claiming the life of one child every minute.

It infects around 200 million people a year and has killed an estimated 584,000 people in 2013, the vast majority of them babies in sub-Saharan Africa.

Now, the world's first malaria vaccine has received the green light from the European drugs regulator, who recommends it as safe to use in babies from six weeks to 17 months at risk of the mosquito-borne disease.

The new vaccine called Mosquirix was developed by British drugmaker GlaxoSmithKline (GSK) and the PATH Malaria Vaccine Initiative.

According to GSK's Chief Executive Officer Andrew Witty it would be the first licensed human vaccine against a parasitic disease.

"This is the world's first vaccine against any parasite. It's not just the first vaccine against malaria. It's never been done before and as recently as 10 years ago well informed scientific opinion would say that this was an impossible mission."Researchers at GSK have been working on the vaccine for 30 years. But it is not a final answer to wiping out malaria. Trial data released in 2011 and 2012 showed that it only reduced episodes of malaria in babies aged 6-12 weeks by 27 percent, and by around 46 percent in children aged 5-17 months.

Professor Brian Greenwood from the London School of Hygiene and Tropical Medicine explains why a vaccine for malaria had proved to be such a challenge.

"The malaria parasite is a difficult bug. I mean it's a very complicated. it has different stages: it lives in a mosquito, it lives for part of its time in humans in the liver and in the blood, it has about 5000 genes, it makes lots of different proteins, it's lived with us for a long time and learnt how to evade the immune system that naturally happens when you get an infection. And so it really has proved very, very difficult to develop a vaccine against the malaria parasite and any other of the parasites."The World Health Organization (WHO) is now expected to review the drug and give a recommendation in November.

They will look how long the effect of the vaccine will last before it wanes away.

The vaccine also needs to win approval from local governments and other funding organizations, and if all goes well it is expected to be rolled out sometime in 2017.

GSK has promised not to make any profit from vaccine, pricing it at the cost of manufacture plus a 5 percent margin, which it will reinvest in research on malaria and other neglected tropical diseases.

But with a price tag of around 5 US Dollars per dose, the cost of the recommended four-dose immunization package comes to around 20 Dollars per person. This is still beyond the reach of many chronically underfunded public health systems in many Malaria infested countries, particularly in Sub Saharan Africa.

For CRI I'm Poornima Weerasekara.

Beijing and neighbor province exchange officialsBeijing and the neighboring province of Hebei have begun an official exchange program.

100 officials from either side will switch positions.

The switch will last one-year.

The program itself is meant to last for 5-years.

Authorities say the move is part of the broader-based plans to further integrate the capital region.

Chinese regulators launch probe into alleged illegal share salesThe Chinese Securities and Regulatory Commission has launched a series of investigations into illegal stock trades connected to 5 listed companies on the A-share market.

The probe is looking into reports major shareholders in these companies have illegally sold-off their shares without giving enough advance notice to the markets.

In one of the cases, a major shareholder in a Shenzhen-listed chemical company off-loaded around 6-percent of the companies shares in trades dating between December and March.

Under current Chinese regulations, major shareholders, corporate execs and company officials who have a stake in the company beyond 5-percent have to hold on to their shares.

Chinese regulators have brought in a series of new rules to stem the major sell-off which hit the markets a few weeks ago.

The panic selling saw the overall A-share market lose around one-third of its value.

Markets here in China have since stabilized, with Shanghai only ending a 6-day bull-run on Friday.

China's Anbang Insurance reported bidding for central London's skyscraperChinese insurer Anbang Insurance has put in a bid to purchase the high-end Heron Tower in London.

A price-tag for the bid has yet to be reported.

The Heron Tower is partly owned by Oman's sovereign wealth fund and by members of the Saudi Royal family.

If the Chinese bid is accepted, it would be the second major property investment by Anbang in recent months.

The Chinese insurer purchased New York's iconic Waldorf Astoria Hotel last year.

Analysis suggests Chinese insurers spent around 15-billion US dollars last year on overseas investments.

China Life purchased a tower on London's Canary Wharf for around a billion US dollars this past year.

The Chinese government has been actively encouraging state-run companies to make overseas investments in an attempt to diversify their portfolios.

Chinese company busted for mass-producing fake Apple iPhonesPolice in Beijing have arrested 9 people involved in a company accused of making some 40-thousand fake iPhones.

As part of the bust, around a million cellphone parts have also been seized.

Authorities began the probe back in May after fake Chinese-made cell phones were discovered in the United States.

Police say the group would purchase used components from foreign countries, then repurpose them with Apple logos purchased in Shenzhen.

It's believed the fake iPhones worth around 20-million US dollars.

Record high temperatures continue to bake parts of XinjiangForecasters are warning record-high temperatures are going to linger in many parts of northwestern China over the next 3-days.

Temperatures are expected to continue to hover around 35 degrees in most areas of Xinjiang into next week.

The southern part of the region along the southwest edge of the Tarim Basin can expect to see temperatures as high as 47 degrees.

Xinjiang has been baking under a lingering heat wave all this week.

A subtropical high pressure system, which is pushing rains to the southern part of China, has been preventing cooler, moist air from making it north.

weatherBeijing will be cloudy tonight with a low of 23 degrees Celsius; cloudy tomorrow with a high of 33.

Shanghai also has clouds tonight with a low of 27; showers tomorrow with a high of 34.

Chongqing will be cloudy tonight with a low of 26, sunny tomorrow with a high of 37.

Lhasa will be cloudy tonight with a low of 12, still cloudy tomorrow with a high of 27.

Elsewhere in Asia,Islamabad, light rain tomorrow, 30.

Kabul, light rain, 31.

Down in the Southern Hemisphere.

Sydney, cloudy with a high of 18.

Brisbane, cloudy with a high of 24.

Perth, sunny, 18.

Headline newsChina strongly protests Japan allowing Lee Teng-hui's entryThe Chinese government is voicing its strong opposition to a move by the Japanese government to allow former Taiwan leader Lee Teng-hui to visit Japan.

A statement from the Chinese Foreign Ministry says the Chinese side is opposed to any individual who engages in Taiwan separatist activities.

The same statement also calls on the Japanese side to respect the One-China policy and refrain from creating a new political barrier between China and Japan.

Lee Teng-hui, who held the position of Taiwan leader from 1988 to 2000 as the chair of the Kuomintang, has long been a vocal proponent of "Taiwan Independence."Record high temperatures continue to bake parts of XinjiangForecasters are warning record-high temperatures are going to linger in many parts of northwestern China over the next 3-days.

Temperatures are expected to continue to hover around 35 degrees in most areas of Xinjiang into next week.

The southern part of the region along the southwest edge of the Tarim Basin can expect to see temperatures as high as 47 degrees.

Xinjiang has been baking under a lingering heat wave all this week.

A subtropical high pressure system, which is pushing rains to the southern part of China, has been preventing cooler, moist air from making it north.

Mercedes-Benz recalls cars over faulty fusesGerman automaker Mercedes-Benz has announced its recalling 150 of its vehicles in China next week.

The cars are being brought back-in at the end of this month to fix a fuse problem.

Chinese authorities have confirmed the fuses in the recalled vehicles may have been incorrectly installed, leading to potential safety hazards.

Mercedes-Benz will replace the faulty fuses for free.

70 Siberian tiger cubs bred in NE China parkThis year's tiger breeding season at the Heilongjiang Siberian Tiger Park is coming to an end.

Breeders at the park say they've managed to breed around 70 tiger cubs so far this year.

The park is expecting around 100 new-born tiger cubs by the end of this year.

There are currently around a thousand Siberian tigers living in the park.

Siberian tigers are among the world's most endangered species.

They live mostly in northeast China and eastern Russia.

Obama in Kenya: 'Africa is on the move'

US President Barack Obama is now on the first-leg of his historic trip to Africa.

Speaking at a meeting in the Kenyan capital, Nairobi, Obama says Africa is a continent "on the move."The US President arrived in Kenya on Friday.

As part of his trip, he's sat down for a dinner with his father's family.

Obama's father was a Kenyan national.

Weekly Biz Roundup(Saturday)Anchor:

It's time to take a look back at some of the headlines from the business world this past week in our Weekly Business Review, which includes stories about the official launch of the BRICS development and an update on the A-share market this past week.

Here's CRI's Wen Jie.

Reporter:

On Tuesday, the New BRICS Development Bank was set up by the top five emerging economies Brazil, Russia, India, China and South Africa.

With an initial capital of 50 Billion US Dollars, the new bank plans to give out its first batch of loans by April of next year.

It is the second multilateral lender to open for business this year after China-initiated Asian Infrastructure Investment Bank.

Chinese Finance Minister Lou Jiwei says the bank will gradually open up to more developing nations.

"As a multilateral development bank initiated and established by the emerging markets, the NDB will focus more on the needs of developing countries, respect their national conditions and better represent developing countries' ideas."Headquartered in Shanghai, the BRICS Bank plans to double its capital base to 100 billion US Dollars in the next few years.

It will also work closely with the Beijing based AIIB that has a similar mandate.

China has pledged 41 billion US Dollars to this fund, giving it the largest share of voting rights at 39.5 percent.

/////////////China's Information Technology regulator released a timetable this Wednesday to reduce prices of broadband services.

China Mobile, China Unicom and China Telecom are expected to slash broadband charges across the country this fall.

Wen Ku with the Ministry of Industry and Information Technology says the Ministry is supervising the price cut.

"About the charges of fixed broadband services, we will urge companies in all levels to reduce their prices, and the nation-wide change should be completed by the end of October. It is expected that the prices for broadband speeds between 50 and 100 Mbps will be reduced about 30 percent, and the price cut for 20 Mbps will be about 20 percent."According to the Ministry's plan, average prices for mobile phone access will also sharply decrease, a year-on-year cut of at least 30 percent, by end of this year.

The latest data shows that China's mobile phone users have accounted for some 95 percent of total population.

The new moves are in accordance with the guidelines of the Internet Plus campaign approved by the State Council, China's cabinet.

/////////////On Monday, China's Ministry of Commerce said the country's foreign direct investment rose eight percent in the first half of the year to over 68 billion U.S. dollars, quickening from 2.2 percent in the same period last year.

Vice Commerce Minister Wang Shouwen attributed the improvement to efforts in widening pilot reforms in free trade areas, fewer government restrictions and active promotion of opening up in certain industries and inland areas.

Wang Shouwen also highlighted the services sector as the main growth point of FDI.

"Investment into China's fast-growing services sector jumped 23 percent in the first half of this year from a year earlier, accounting for more than 60 percent of the period's total FDI. This is due to the government's measures in support of the opening up in the services sector."Wang added that more foreign investment will enter China through mergers and acquisitions in the future.

However, the Vice Minister warned that FDI growth will probably drop in the latter half mainly due to a slow economic recovery in major FDI sources and the tapering of U.S. quantitative easing.

//////Official stats this Thursday showed China's foreign exchange deficit grew through the first half of this year.

Chinese banks bought over 860-billion U.S. dollars worth of foreign currency through the first 6-months of this year.

However, they sold-off over 970-billion U.S. dollars in forex through the same period.

Wang Chunying with the State Administration of Foreign Exchange says fluctuations in cross-border capital flows have been stabilizing since the second quarter.

"Statistics suggest that the pressure on China's cross-border capital outflows was down in the second quarter. Domestically speaking, GDP growth remained at 7 percent in the second quarter, the same with the first quarter figure. This shows a sign of improvement in the Chinese economy. Meanwhile, the strengthening U.S. dollar was a key factor in the first quarter, since the US Dollar Index increased 9 percent. However, the dollar index has since fallen in the second quarter."Meanwhile, China's forex reserves have dropped by some 36 billion U.S. dollars through the second quarter.

This was significantly slower than the 110-billion US dollar loss in forex reserves through the first quarter of this year.

/////Turning to Chinese stock market this week,On Friday, China's A share market ended its 6-day bullish run.

However, the benchmark Shanghai Composite Index still stood above the psychologically important 4000 points.

Observers believe the government's measures to stem the major sell-off are now taking a firm hold.

On Tuesday, China Securities Finance Corporation, the national margin trading service provider, has denied a rumor that it reduced holdings in a listed dairy producer.

The announcement is part of its ongoing effort to shore up market confidence.

During the country's concerted efforts to curb sharp stock market declines, China's central bank said it supports the liquidity needs of the CSFC to increase share purchases and offer brokerage firms liquidity aid.

Meanwhile, new analysis this week suggests a majority of the companies listed in China may end up turning a profit through the first half of this year despite the overall market volatility.

/////On the Corporate Front,106 Chinese companies made this year's Fortune Global 500 list, up from 100 firms in 2014.

According to the annual ranking released Wednesday, Sinopec, China's top oil refiner was the second largest company in the world this year by total revenue, up from the third place last year.

The new list is topped by U.S. retail giant Walmart.

Other Chinese companies, like PetroChina, the largest oil and gas producer in China, remained in fourth place this year.

State Grid Corporation, the largest electric utilities company, remained seventh.

The number of Chinese companies is second to the total number of U.S. companies.

/////On Wednesday, the joint-venture between FAW and Volkswagen reported a more than 11-percent drop in vehicle sales through the first half of this year.

Other joint ventures, including Chang'an Ford and Beijing Hyundai, have also been reporting a slowdown in sales.

CRI's financial commentator Cao Can says the negative news about foreign brands have dampened Chinese consumers' enthusiasm.

"We have (been) hearing series of negative news concerning these joint ventures. For instance, for the brand Audi, we heard a price discrimination happening in the China market. For volkswagen, we also heard negative qualities when it comes different models."At the same time, sales of fully-owned Chinese brands are up nearly 25-percent through the first half of this year.

Sales of new-energy vehicles have more than doubled among stand-alone Chinese vehicle makers.

/////And finally,British publishing company Pearson has announced it has agreed to sell its flagship business newspaper the Financial Times to Japanese digital media group Nikkei.

Pearson says it will sell the FT Group, which also includes FT.com, for 1.3 billion U.S. dollars in cash.

Pearson has owned the paper for nearly 60 years.

IG market analyst Chris Beauchamp says he doesn't feel that radical changes at FT are imminent.

"Like all news organisations it has slimmed down quite considerably over the last few years and that paywall continues to provide the steady income it needs. I don't think anyone's looking to make radical changes just yet. It fits what it does very very well, and a desire I think from any new owner not to change that current policy."Nikkei Incorporated, publisher of the Nikkei business daily, is the largest independent business media group in Asia.

And that concludes this edition of the weekly business review; I'm Wenjie, thank you for listening.

SportsMilan Derby Ignites Long-Standing Rivalry Tonight in ShenzhenTonight:

The Chinese port city of Shenzhen is the venue for one of football's biggest rivalries.

The Derby di Milano kicks off at 8 p.m., Beijing time, as crosstown rivals AC Milan and Inter Milan are set to clash in their International Champions Cup match.

Milan beat Inter 2-1 in Beijing in 2011 as a curtain raiser to the new Serie A season, but both teams are arguably in a worse position now after a disappointing 2014/15 season.

Inter finished the Serie A standings in eighth place while Milan ended two spots lower.

But Inter coach Roberto Mancini says Milan is rebuilding under the leadership of new coach Sinisa Mihajlovic:

"AC Milan is rebuilding itself. I'm very happy to see Sinisa Mihajlovic becoming AC Milan's manager. He has worked very hard for this position and he deserves it. The most important thing now is for both Milan clubs to get back to their top form."AC Milan are throwing plenty of money around as they bid to restore their glory years. Andrea Bertolacci, Jose Mauri, Carlos Bacca and Luiz Adriano have shown up pre-season, with the promise of more signings to come.

Milan coach Sinisa Mihajlovic explains:

"These new players came to the club. They played at their previous clubs with conviction. So now they are playing in our club, and yes, they are not quite up to speed, but they are training hard to improve. So I believe they will be ready for next season."The rivalry between the two clubs goes back to 1908. This current match in their long rivalry is the second time the two have met on Chinese soil.

Int'l Champions Cup RecapIn football action from the International Champions Cup:

Real Madrid beat Manchester City 4-1 at the Melbourne Cricket Ground in Australia on Friday.

Madrid opened scoring in the 21st minute when Karim Benzema netted a close-range scissor-kick. Cristiano Ronaldo doubled the lead two minutes later.

City finally responded in first-half stoppage-time with a penalty from Yaya Toure, but were already down 3-0.

Real's second-half substitute, Denis Cheryshev, then sealed a 4-1 win in the 73rd minute as he restored the three-goal lead.

In yesterday's other match:

Italian squad Fiorentina edged Portuguese side Benfica 5-4 on penalties in East Hartford, Connecticut on Friday.

In the shootout; the first eight were converted and then Mario Suarez made it 5-4 Fiorentina.

CSL Preview.

In football action from the Chinese Super League last night:

Shandong Luneng has beaten Tianjian Teda 3-1.

Shandong now sits atop the standings with the win, but it could be short-lived when this weekend's fixtures finish.

Tonight:

Changchun Yatai is taking on Shanghai Shenxin.

(UPDATE)Liaoning Whowin is going to play Jiangsu Sainty.

(UPDATE)Shijiazhuang Everbright will go up against Guangzhou R&F at home.

(UPDATE)FINA World Championships RecapAt the FINA World Championships going on right now in Kazan, Russia:

U.S. open water swimmer Haley Anderson snatched the World Championships' first gold medal in the women's five-kilometer open water swimming event.

Anderson finished witha time of 58 minutes, 48.4 seconds, followed closely by Kalliopi Araouzu of Greece in second and Germany's Finnia Wunram in third.

In diving action from the women's three-meter springboard event:

(UPDATE)In action from synchronized swimming:

Chinese competitor Sun Wenyan sits in third after the Women's Solo Technical prelims. Ahead of her in second is Ona Carbonell of Spain, and in first is Svetlana Romashina of Russia.

In the swimming mixed duet technical prelims, Russia is in the lead, followed by the the U.S. in second, with Italy in third.

Still to come tonight:

In diving: it's the 10-meter platform synchronized mixed diving.

In synchronized swimming: the women's team technical.

Usain Bolt, Mo Farah Triumph at Diamond League London EventIn athletics:

Usain Bolt returned to form three weeks ahead of the World Championships as he clocked his season's best in winning the 100-meter event at the Diamond League meeting in London on Friday.

The Jamaican, returning to the scene of his 2012 Olympics triumph, ran a 9.87 in the final.

Usain Bolt on the win:

"It was a pretty good run. I was really happy with my performance. My execution in the heats was pretty good, I thought my finals was pretty bad I am not happy with the way that I ran it, but it was just one of those things."And hometown Olympic champ Mo Farah triumphed in the 3000-meter, his winning time of 7:34.66 is the quickest this year and a personal best.

Farah has been under pressure since his coach Alberto Salazar was accused of doping by the BBC - no wrongdoing has been alleged against Farah.

F1: Lewis Hamilton Fastest at Hungary GP PracticeWorld championship leader Lewis Hamilton was fastest after practice for the Hungarian Grand Prix in Budapest on Friday, but the session was marred by a crash involving Force India's Sergio Perez.

The Mexican lost control of his car in the first session on the exit of turn 11 after suffering a rear suspension failure.

He slid across the track, hitting the barriers at high speed as his Force India landed upside down. However, Perez emerged unscathed.

Force India withdrew both of their cars for the second session as a result of the crash.

World championship leader Hamilton was comfortably faster than his Mercedes team-mate Nico Rosberg, who could only manage the fourth-fastest lap.

Golf RecapIn golf:

At the European Masters in Switzerland:

Danny Willett leads the European Masters by a single shot after an electrical storm suspended play in Crans, Switzerland, on Friday.

At the Meijer LPGA Classic in Grand Rapids, Michigan:

Lexi Thompson, Alison Lee and Lizette Salas share the lead at the halfway stage.

Lexi Thompson birdied six of her first eight holes and finished with a season-best 7-under par 64.

The 20-year-old Thompson matched Lee and Salas at 9-under (133) at Blythefield Country Club.

Lee, the former UCLA player in her first season on the tour, carded a 66, and playing partner Salas, a former Southern California star, shot a 70.

At the PGA Tour's Canada Open:

Chad Campbell shot a nine under par round of 63 on Friday to take the lead at the halfway stage of the tournament.

Entertainment'Monkey King: Hero Is Back' Breaks 'Kung Fu Panda 2' Record, Best-selling Chinese AnimationChinese animation "Monkey King: Hero Is Back" has grossed 618-million yuan, becoming the best-selling animation ever to hit Chinese theatres.

It's earnings have now surpassed the 2011 film "Kung Fu Panda 2," which grossed 617-million yuan.

It also marks the first time in a decade a Chinese animation has topped the revenue charts.

Japanese film "Stand by Me Doraemon" sits in second place with 531-million yuan in revenues.

"Big Hero 6" sits 3rd with 503-million yuan earned for an animation.

Meanwhile, "Monster Hunt" has officially taken in over 1.1-billion yuan in just 9-days after opening.

The film is only 140-million yuan short of becoming the highest-grossing movie in China ever.

That title is currently held by "Lost in Thailand."It's widely expected "Monster Hunt" will surpass "Lost in Thailand" by tomorrow.

'The Flowers of War' Star Ni Ni to Team up with Adrien Brody in 'Manhattan Love Story'

Chinese actress Ni Ni and American Adrien Brody have been tapped as the leads in the forthcoming romantic comedy "Manhattan Love Story."The story itself revolves around a Chinese woman and an Italian man who try to work through their cultural differences while falling in love in New York city.

Ni Ni is best known as the lead actress in Zhang Yimou's "The Flowers of War."Adrien Brody won the Best Actor award at the Oscars in 2002 for his role in "The Pianist.""Manhatten Love Story" is set to begin shooting next month in New York.

It only has a budget of 15-million US dollars.

A release date for the film has yet to be set.

Sandra Bullock's 'Our Brand Is Crisis' Gets October Release DateA release date has been set for Warner Brothers' political drama "Our Brand Is Crisis."The film, starring Sandra Bullock and Billy Bob Thornton, is due out on October 30th.

"Our Brand Is Crisis" tells the tale of a pair of political consultants who are pitted against one-another in a presidential election campaign in Bolivia.

The film is going to be up against Paramount's "Scouts Guide to the Zombie Apocalypse," which has a release date around the same time.

Marvel Announces Teenage 'Spidey' Comic Book SeriesMarvel has announced plans to develop a new Spider Man comic book series focusing on the superhero's teenage life.

It would coincide with Marvel's plan to release the next Spider Man film.

Young actor Tom Hollander has been tapped to be the new 'Tom Parker.'

The comic book series is reportedly be going to be called "Spidey."The new series is said to take place at the very beginning of Spider Man's foray into crime-fighting.

But instead of focusing on the action, the new film and comic book series is going to focus more on 'Peter Parker's' struggles to fit in.

Ed Sheeran Wembley Live to Air on NBCNBC has announced its going to air a special feature of Ed Sheeran's most recent live show at London's Wembley Stadium.

The program will also give Sheeran's fans an opportunity to get some behind-the-scenes glimpses of his 3-day stint at Wembley as part of the hour-long special.

It's also reportedly going to include the surprise duet with Sheeran and Elton John.

"Ed Sheeran – Live at Wembley Stadium" is set to go to air on Sunday, August 16th on NBC.

It's going to go head-to-head with the 'Teen Choice Awards,' which will be airing on Fox on the same night.

weatherBeijing will be cloudy tonight with a low of 23 degrees Celsius; cloudy tomorrow with a high of 33.

Shanghai also has clouds tonight with a low of 27; showers tomorrow with a high of 34.

That's it for this weekend edition of the Beijing Hour.

A quick look at the headlines before we go...

The Chinese government is lashing out at Japan amid word its allowing a former leader from Taiwan to travel to the country.

On behalf of the Beijing Hour staffers, this is Paul James in Beijing hoping you'll join us for the next edition of the Beijing Hour, and open a window to the world together.