CHINA

As the global economy is entering arguably another tumultuous year, spotlight is sharply on the prospects, policies and risks of China's economy, which has all but sailed past Japan's as the world's second largest after the United States.

South Korean President Lee Myung-bak, called on the country's military to strike with strong 'counter-attacks' on the North. Lee visited the front-line army units in Yanggu of Gangwon Province on Thursday. Despite domestic opposition, Seoul's hard-line government is holding the one of its largest-ever military at Pocheon, 20km south of the North Korean border. The country so far conducted 47 drills in the past year.

The United States on Wednesday dragged China to the World Trade Organization (WTO) alleging that the country was illegally providing subsidies towards manufacture of wind power equipment.

China intends to boost its economic ties with Africa, which is already worth about $100 billion, according to a report by the government.

The US Department of Energy has released a critical materials strategy based on extensive research by the Department during the past year examining the role of earth metals and other materials in the clean energy economy.

The next-generation iPad, or iPad 2, is said to have a flat back, smaller bezel and a wide-range speaker.

World stocks hit their highest level since September 2008 on Thursday while oil held near a two-year peak as favorable U.S. data reinforced expectations economic growth will retain momentum into next year.

Oil prices climbed toward a two-year high on Thursday as cold weather in the United States boosted demand, slashed stockpiles and contributed to a stronger-than-expected rise in fuel consumption in 2010.

Asian shares edged higher on Thursday with gains led by resource-linked stocks, and oil traded just below the two-year high it hit yesterday on cautious but growing optimism of the health of the world economy.

China is willing to help countries in the euro zone return to economic health and will support the International Monetary Fund element of a bailout package for the bloc, a Chinese Foreign Ministry spokeswoman said on Thursday.

Resources-linked stocks rose and oil climbed toward the $91 per dollar mark for the first time in more than two years after latest U.S. data offered yet another sign that the world's biggest economy is on the mend.

China Tel will be putting $62 million into selling internet protocol telephony in Peru, via its subsidiary Perusat.

When the return on savings is less than the rate of inflation it doesn't matter that gold doesn't provide you with an income. Tightly supplied and indestructible, it offers a natural and obvious alternative to cash. Inflation expectations are rising as 2011 begins.

U.S.-China trade tensions spilled to wind power as the U.S. announced that it has requested consultations with China, thereby initiating the first step in the WTO dispute process.

The property industry should not an important pillar of the economy, said Yun Xiaosu, vice minister of the Ministry of Land and Regulation.

A senior bullion logistics executive in Switzerland yesterday told BullionVault that shipments of Gold Bullion to China are running much higher – and have begun much earlier – to meet consumer demand for the Chinese New Year, which will start on 3rd Feb. 2011.

China will buy 4 to 5 billion euros of Portuguese debt in first quarter 2011 and save Europe once again in the process.

The top pre-market NASDAQ stock market losers are: Cumberland Pharmaceuticals, Xilinx, XOMA, Capitol Federal Financial, Altera, Hercules Offshore, LM Ericsson Telephone, InterMune, Sino Clean Energy, and Vodafone Group.

Cote d'Ivoire's disputed president, Laurent Gbagbo, has announced that he would be willing to engage with the rival faction of Alassane Ouattara. In a televised address, he announced that the international community had declared a war on the African nation. The incumbent president also called on the Opposition to leave Abidjan's Golf Hotel and return to their homes.

India and Russia signed a deal worth $30 billion to design and make fifth generation fighter aircraft taking defense co-operation between the two nations to a new level.

US diplomats in Washington once dubbed North's Korea's military drills as 'fish-killing' activities. Yet the South, backed by the Obama administration, has been continuously holding live-fire drills in the disputed zone of the Korean Peninsula. With a continual military activity, the coming months could only witness a deteriorating situation in the peninsula, unless both sides are pressured to engage in a dialogue.