Scores killed in China protests

Violence in China’s restive western region of Xinjiang has left at least 140 people dead and more than 800 people injured, state media say.

Several hundred people were arrested after a protest, in the city of Urumqi on Sunday, turned violent.

Beijing says Uighurs went on the rampage but one exiled Uighur leader says police fired on students.

The protest was reportedly prompted by a deadly fight between Uighurs and Han Chinese in southern China last month.

Our correspondent  in Shanghai says this is one of the most serious clashes between the authorities and demonstrators in China since Tiananmen Square in 1989.

‘Dark day’

Eyewitnesses said the violence started on Sunday in Urumqi after a protest of a few hundred people grew to more than 1,000.

Xinhua says the protesters carried knives, bricks and batons, smashed cars and stores, and fought with security forces.

Wu Nong, news director for the Xinjiang government, said more than 260 vehicles were attacked and more than 200 shops and houses damaged.

Most of the violence is reported to have taken place in the city centre, around Renmin (People’s) Square, Jiefang and Xinhua South Roads and the Bazaar.

The police presence was reported to be heavy on Monday.

Adam Grode, an American studying in Urumqi, told Associated Press: “There are soldiers everywhere, police are at all the corners. Traffic has completely stopped.”

UIGHURS AND XINJIANG Uighurs are ethnically Turkic Muslims They make up about 45% of the region’s population. 40% are Han Chinese China re-established control in 1949 after crushing short-lived state of East Turkestan Since then, large-scale immigration of Han Chinese Uighurs fear erosion of traditional culture Sporadic violence since 1991 Attack on 4 Aug 2008 near Kashgar kills 16 Chinese policemen

A witness in the Xinjiang city of Kashgar told AP there was a protest there on Monday of about 300 people but there were no clashes with police.

It is still unclear who died in Urumqi and why so many were killed.

The Xinjiang government blamed separatist Uighurs based abroad for orchestrating attacks on ethnic Han Chinese.

But Uighur groups insisted their protest was peaceful and had fallen victim to state violence, with police firing indiscriminately on protesters in Urumqi.

Dolkun Isa, a spokesman for the World Uyghur Congress (WUC) in Munich, disputed the official figures, saying the protest was 10,000 strong and that 600 people were killed.

He rejected reports on Xinhua that it had instigated the protests.

Xinhua had quoted the Xinjiang government as blaming WUC leader Rebiya Kadeer for “masterminding” the violence.

But Mr Isa said the WUC had called on Friday only for protests at Chinese embassies around the world.

More than 260 vehicles were destroyed in Urumqi, officials said

Alim Seytoff, the vice-president of another Uighur group – the US-based Uighur American Association – condemned the “heavy-handed” actions of the security forces.

“We ask the international community to condemn China’s killing of innocent Uighurs. This is a very dark day in the history of the Uighur people,” he said.

When asked about the rioting, UN Secretary General Ban Ki-moon said that all governments must protect freedom of speech and “the life and safety of civilian populations”.

A spokesman for UK PM Gordon Brown said Britain was urging “restraint on all sides”.

Italian President Giorgio Napolitano said he had raised the issue of human rights with visiting Chinese President Hu Jintao in Rome.

Internet blocks

The Uighurs in Urumqi were reportedly angry over an ethnic clash last month in the city of Shaoguan in southern Guangdong province.

A man there was said to have posted a message on a local website claiming six boys from Xinjiang had “raped two innocent girls”.

China aims to silence reform call

China’s economy has liberalised, but its political system has not

Chinese lawyers, dissidents and academics who signed a document calling for political reform are being harassed by the authorities.

Signatories to the Charter 08 document have been detained, questioned by the police and put under pressure at work.

The charter calls for a radical overhaul of China’s political system by introducing elections, a new constitution and an independent judiciary.

Despite 30 years of economic reforms, China’s political system has hardly changed in that time.

And the authorities’ reaction to this latest call for reform suggests the country’s leaders still have no appetite for political reforms.

House arrest

Charter 08 was published last month on the 60th anniversary of the promulgation of the Universal Declaration of Human Rights.

December also marked three decades since China began reforms that have transformed the economy and the country’s fortunes.

But even before the document was published, the police started visiting some of the 300 or so original signatories.

Writer and dissident Liu Xiaobo is believed to be under a form of house arrest at an undisclosed location in Beijing.

CHARTER 08 New constitution Legislative democracy Judicial independence Freedom to assemble

The authorities have yet to state publicly why the 53-year-old has been detained.

He is believed to be the only signatory being held by the police, but others have experienced other kinds of harassment.

Police went to journalist Li Datong’s work unit to look for him. He was not there, but now he knows the authorities are watching him.

Shanghai lawyer Zheng Enchong has been taken in for questioning four times since the document was published.

Speaking out

Li Boguang, another lawyer, was invited to meet with a Chinese security official at a Beijing coffee shop, where for more than an hour he had to explain why he had added his name to the charter.

“The official didn’t say anything. He just listened to my reason and then left. This is how they operate,” he said.

I am willing to pay any price for this Xu Youyu, Charter 08 signatory

China usually metes out severe treatment to anyone who criticises the system, but Mr Li said he still thinks it was right to sign the charter.

“Change requires ordinary citizens, particularly intellectuals, to speak out. This will slowly influence the government,” he said.

Another signatory, academic Xu Youyu, experienced a different kind of pressure.

Mr Xu, a professor at the Chinese Academy of Social Sciences, was told by his boss that signing the document broke Chinese laws.

“I told him that was nonsense. That’s absolutely not the case,” the expert in Western philosophy told us.

Liu Xiaobo is in detention at an undisclosed location

He was then asked to retract his signature, which he refused to do. “I am willing to pay any price for this,” he added – even going to prison.

Mr Xu has also been told that he will not now be allowed to write the forward to the book of a colleague.

“The publishers received an order from the centre saying that everybody who signed their name to the charter had lost their qualification to publish any article or any book,” he said.

The document that appears to be causing so much concern among senior Chinese leaders is one of the most important published in several years.

It was based on Charter 77, which in 1977 called for respect for human and civil rights in what was then Czechoslovakia.

Property rights

Charter 08 says the Chinese government’s approach to modernisation has been “disastrous”.

It “deprives humans of their rights, corrodes human nature, and destroys human dignity,” the document says.

It calls for a political system that guarantees human rights, freedom of expression and protection for private property.

It has also stirred interest abroad. Several Nobel laureates, among others, have written to Chinese President Hu Jintao asking him to release Liu Xiaobo.

China’s leaders are saying little about Charter 08 – or the detention of Mr Liu.

But President Hu made it clear in a speech to mark the 30th anniversary of the country’s reforms that China would not adopt Western-style democracy.

Willy Lam, of the Chinese University of Hong Kong, said China’s leaders are nervous about calls for political change.

This nervousness has increased with the country’s economic problems, which could create a restless population receptive to calls for political change.

Mr Liu’s detention is a case of “killing the chicken to scare the monkey”, according to Mr Lam.

This is a Chinese idiom that suggests making an example of one person to keep others in line.

China tainted milk scandal widens

Four infants have died and more than 6,000 are sick

The scandal of tainted dairy products in China has widened, with liquid milk now found to be contaminated.

Inspectors found that 10% of liquid milk taken from three dairies was tainted with melamine.

The scandal first came to light in milk powder that killed four infants and sickened more than 6,000 others.

Suppliers are believed to have added melamine, a banned chemical normally used in plastics, to diluted milk to make it appear higher in protein.

Public trust

China’s quality watchdog, the General Administration of Quality Supervision, Inspection and Quarantine, tested liquid milk from three dairies.

Its website said 10% of the milk from the country’s two largest – Mengniu Dairy Group and Yili Industrial Group – contained up to 8.4 milligrams of melamine per kg.

Products from Shanghai-based Bright Dairy were also contaminated, it said.

The watchdog said it would “strictly find out the reason for adding the melamine and severely punish those who are responsible”.

All the batches that tested positive were being recalled, it said.

However, officials insisted most milk was safe to drink – in an attempt to rebuild public trust in dairy products.

It is not being suggested that anyone has fallen ill from drinking liquid milk contaminated with melamine.

But he says people are extremely angry to learn that more and more products have been found to be unsafe.

One 31-year-old man queuing at Sanlu offices in Shijiazhuang to get a reimbursement for medical exam payments for his baby told Associated Press news agency: “If such a big company is having problems, then I really don’t know who to trust.”

Arrests

The scandal broke last week after the Sanlu Group said it had sold melamine-laced milk powder.

Of those children made sick, more than 150 are said to have acute kidney failure.

Chinese police have arrested 18 people in connection with the scandal.

The scandal broke at the Sanlu Group

Twelve were arrested in the province of Hebei on Thursday on suspicion of being involved in the supply of tainted milk.

Hebei is home to the headquarters of Sanlu.

The State Council – China’s cabinet – has held a meeting to discuss the issue.

China’s official news agency Xinhua says that the council has decided to reform the dairy industry.

It says that the tainted milk powder incident “reflected chaotic industry conditions, as well as loopholes in the supervision and management of the industry”.

On Thursday, Hong Kong recalled dairy products made by the Yili group after tests found milk, ice-cream and yogurt contaminated with melamine.

China’s ability to police its food production industries has long been under question.

Health scares and fatalities in recent years have ranged from the contamination of seafood to toothpaste and, last year, to pet food exported to the US.

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Are you in China? What is your reaction to the news that liquid milk has also been contaminated? Tell us your concerns

Investors cautious amid turmoil

Asian share prices have continued to fall as confidence remains low

European stocks rise in cautious trade as Lloyds TSB’s takeover of UK lender HBOS dispelled some of the gloom hanging over financial markets.

Asian shares had earlier fallen sharply on fears that more companies could fall victim to the global financial crisis.

London’s FTSE 100 index was up 0.8% at 4,951 points shortly after the open and France’s main stock index rose 0.6%.

In Asia, Tokyo’s Nikkei share index dropped by 2% while Hong Kong’s main stock index slid by 7%.

Share indexes in Shanghai, Taiwan and India fell by between 3 and 5%.

Hong Kong’s Hang Seng index dropped below the 17,000 mark and Australian shares closed 4% lower.

On Wednesday, the Dow Jones index of leading US stocks fell by more than 4%.

Flight to safety

Brokers in Japan say the markets are in freefall because investors fear the US government’s efforts to stop the turmoil in the financial system are not working.

As a result, investors are looking for safer places to put their money than stocks and shares.

Traders saw plummeting shares on Wall Street on Wednesday

Many Japanese institutions have assets insured by AIG, the insurance company that was rescued by the US government on Tuesday.

And in Singapore, for the second day running, hundreds of AIG policyholders queued up outside its offices trying to surrender or cancel policies they fear could turn out to be worthless.

Feverish speculation

The US Federal Reserve’s AIG rescue package followed the collapse earlier this week of 150-year-old US investment bank Lehman Brothers, which sent shockwaves through the world’s financial community and sparked a global share price plummet.

Another investment bank, Merrill Lynch, has since been sold off to Bank of America. And in the UK, HBOS is being taken over by Lloyds TSB in a £12.2bn deal.

There has also been feverish speculation about the future of two other leading US banks – Morgan Stanley and Washington Mutual.

The New York Times quoted unnamed sources as saying an auction for Washington Mutual was under way. The Wall Street Journal reported that both banking giant Citigroup and Wells Fargo had expressed an interest in a takeover.

Meanwhile the Reuters news agency reported that Morgan Stanley, the second largest US investment bank in the US which on Wednesday saw a quarter of its value wiped off its share price, had held preliminary takeover talks with Wachovia.

None of the companies involved has made any comment on the speculation and no negotiations can be confirmed.

Banks take action

The Bank of Japan has injected another 1.5 trillion yen ($14.4bn; £7.9bn) into money markets to help stabilise them. Australia took similar steps.

The Japanese central bank’s injection was the third consecutive day it had tried to shore up cash markets as the Nikkei trades at a three-year low.

Across Asia, central banks have already pumped $33bn into money markets this week in an attempt to allay investors’ concerns and ensure the supply of funds does not dry up.

Investors edgy as US stocks fall

Investors are concerned that financial markets will remain volatile.

US stock markets sank in early trade on fears the bailout of insurance giant AIG would not be enough to dispel the gloom engulfing the financial world.

AIG’s rescue and a potential takeover of UK lender HBOS had earlier boosted confidence in Asia and Europe.

But markets were volatile as nervous investors tried to make sense of the dramatic events that have unfolded in recent days.

The widely watched Dow Jones industrial average was down 1.9% at 10,849.

Top UK mortgage lender HBOS, which has faced heavy selling this week, fell as much as 50% before recovering after it emerged that it was in advanced talks to be taken over by Lloyds TSB.

HBOS shares were down 13% at 160 pence in London, the biggest faller in the FTSE 100, after being the top gainer at one point.

It has been a tumultuous week on financial markets, with significant changes in the financial landscape.

Key events on Wednesday included:

• Beleaguered HBOS in merger talks with Lloyds TSB after a steep fall in its share price
• US insurance giant AIG being bailed out by the US government
• Volatile stock markets as global investors remain nervous
• Trading on the Russian stock exchange being suspended
• Barclays snapping up key assets from Lehman Brothers after its bankruptcy

I don’t think anyone has got any or much confidence in market direction for more than a few days Darren Winder, Cazenove

The FTSE 100 index of top UK shares was down 0.48% at 5,001.4, reversing earlier gains, with some banking shares hard hit.

Shares in Barclays were up 9.8%, Lloyds TSB climbed 7.9% while Royal Bank of Scotland was down 2.6%.

Topsy-turvy trade

Trade is likely to remain rocky amid concern that financial system instability will continue after the dramatic events of the past few days.

“I don’t think anyone has got any or much confidence in market direction for more than a few days,” said Darren Winder, a strategist at Cazenove.

AIG’s bail-out follows the collapse of US investment bank Lehman Brothers, which caused share prices to plummet across the world’s financial markets.

Another investment bank, Merrill Lynch, has been sold off to Bank of America.

France’s Cac 40 share index was down 0.24%, while Germany’s Dax index was 0.64% lower, reversing earlier gains as Wall Street opened.

Russia’s stock exchange suspended trade following steep falls in shares.

Asian shares had a mixed session. Stocks in Tokyo, Taipei, and Seoul all rose, although prices in Hong Kong, Shanghai and Australia lost ground.

Japan’s Nikkei 225 index ended up 1.2% at 11,749.79, having risen by as much as 2.3% earlier in the day. The index had hit a three-year low on Tuesday.

Hong Kong’s Hang Seng index ended down 3.6% at 17,637.19 points.

Putin blames US for Georgia role

Mr Putin said US citizens were in the area during the conflict

Russian Prime Minister Vladimir Putin has accused the US of provoking the conflict in Georgia, possibly for domestic election purposes.

Mr Putin told CNN US citizens were “in the area” during the conflict over South Ossetia and were “taking direct orders from their leaders”.

He said his defense officials had told him the provocation was to benefit one of the US presidential candidates.

The White House dismissed the allegations as “not rational”.

Georgia tried to retake the Russian-backed separatist region of South Ossetia this month by force after a series of clashes.

Russian forces subsequently launched a counter-attack and the conflict ended with the ejection of Georgian troops from both South Ossetia and another rebel region, Abkhazia, and an EU-brokered ceasefire.

Diplomatic wrangling

Mr Putin said in the interview: “The fact is that US citizens were indeed in the area in conflict during the hostilities.

“It should be admitted that they would do so only following direct orders from their leaders.”

Those claims first and foremost are patently false, but it also sounds like his defence officials who said they believed this to be true are giving him really bad advice Dana Perino, White House spokeswoman

Mr Putin added: “The American side in effect armed and trained the Georgian army.

“Why… seek a difficult compromise solution in the peacekeeping process? It is easier to arm one of the sides and provoke it into killing another side. And the job is done.

“The suspicion arises that someone in the United States especially created this conflict with the aim of making the situation more tense and creating a competitive advantage for one of the candidates fighting for the post of US president.”

White House spokeswoman Dana Perino rejected the allegation.

“To suggest that the United States orchestrated this on behalf of a political candidate – it sounds not rational,” she said.

“Those claims first and foremost are patently false, but it also sounds like his defense officials who said they believed this to be true are giving him really bad advice.”

SOUTH OSSETIA & ABKHAZIA South Ossetia Population: About 70,000 (before recent conflict) Capital: Tskhinvali President: Eduard Kokoity Abkhazia Population: About 250,000 (2003) Capital: Sukhumi President: Sergei Bagapsh

Diplomatic wrangling over Russia’s actions in Georgia continued on Thursday with the Georgian parliament urging its government to cut diplomatic ties with Moscow.

Earlier, French Foreign Minister Bernard Kouchner suggested some EU countries were considering sanctions against Russia.

Mr Kouchner insisted France had made no proposals for sanctions itself but, as current president of the EU, would aim to get consensus among all 27 countries of the bloc if sanctions were envisaged.

France has called an emergency EU summit on Monday to reassess relations with Russia.

Russian Foreign Minister Sergei Lavrov described talk of sanctions as the working of “a sick imagination”.

Such talk was an emotional response that demonstrated Western confusion over the situation, he said.

The US has said it is now considering scrapping a US-Russia civilian nuclear co-operation pact in response to the conflict.

“I don’t think there’s anything to announce yet, but I know that that is under discussion,” Mr Perino said.

The White House has also announced that up to $5.75m (£3.1m) will be freed to help Georgia meet “unexpected and urgent refugee and migration needs”.

Rocket test

Earlier on Thursday Russia failed to get strong backing from its Asian allies over the Georgia conflict.

The Shanghai Cooperation Organisation (SCO), comprising Russia, China and Central Asian nations, met in Dushanbe, Tajikistan, and spoke of its deep concern.

The group did not follow Russia in recognising the independence of South Ossetia and Abkhazia.

Russian President Dmitry Medvedev insisted he had the backing of the nations over Moscow’s actions.

Amid the rising tension, Russia announced on Thursday it had successfully tested its long-range Topol ballistic missile from a launch site in Kamchatka in the far east of the country.

Russia says the rocket is capable of penetrating the proposed US missile defence.

Federer hit by shock Olympic loss

Roger Federer’s disappointing season continued as his hopes of winning Olympic gold in the men’s singles were ended by an inspired James Blake.

Blake had not beaten the top seed in eight previous attempts but won their quarter-final 6-4 7-6 and will play Fernando Gonzalez in the semi-finals.

Second seed Rafael Nadal will play Novak Djokovic in the other semi-final.

Spaniard Nadal beat Jurgen Melzer 6-0 6-4 and Djokovic, from Serbia, defeated Gael Monfils 4-6 6-1 6-4.

In the other quarter-final 12th seed Gonzalez, who is from Chile and claimed the bronze medal at the 2004 Olympics, cruised past Frenchman Paul-Henri Mathieu 6-4 6-4.

I know I can beat the best in the world on my day and I proved it Federer’s conqueror James Blake

Federer, who will lose his world number one ranking to Nadal on Monday, made a number of unforced errors and will need a dramatic reversal in fortunes if he is to successfully defend his US Open title later this month.

“It’s a big disappointment obviously. The Olympics was one of the goals of the season for me. So obviously the quarter-finals is not going to do it,” he said.

“But I’ve still got to look forward to the US Open. I still have that and then the Masters Cup in Shanghai to really do well now and try and save my season.

“I think James played well. I can only really say how well he played. I’ve played him on many occasions, but I think this was the best I’ve seen him.

“I’m happy for him. I hope he can go all the way now.”

Blake, the world number seven, had won only one set in his previous matches against Federer, but he unnerved the five-time Wimbledon champion with a near faultless service game and an aggressive forehand.

“I always believed in myself,” said Blake. “I’d lost to him eight, nine, 10, 50 times, I don’t know how many, but I had the feeling it could be my day.

“He didn’t play a good first game and that put me up straight away. I played loose and free and I always fancy my chances on the 5-4 game.

“I know I can beat the best in the world on my day and I proved it.”

The 28-year-old broke Federer when the Swiss was serving to stay in the first set and then broke again early in the second to take a 3-0 lead.

Federer, who was struggling with his serve and forehand, broke back in the fifth game to take the set to a tie-break only for Blake to win it after racing into a 4-1 lead.

Federer was due to play in the doubles quarter-finals with Stanislas Wawrinka later on Thursday against the Indian pair of Leander Paes and Mahesh Bhupathi but the match was postponed because of rain.