China

Pollution levels in Beijing rose above index limits on Tuesday, the US embassy said, as a dense cloud of haze shrouded large swathes of northern China, AFP reports.

China's economy will pick up pace a little in 2013 and inflationary pressures will increase, the deputy governor of the country's central bank said Saturday.

"I think China's growth rate will be about 8% this year," Yi Gang said during a debate at the World Economic Forum in Davos, Switzerland. He said consumer price inflation could reach 3% or slightly higher.

 The world's second-biggest economy grew by 7.8% last year, well below the average 10% growth seen in the past three decades but better than the government's own target of 7.5% and above analyst expectations.

The annual figure was boosted by a recovery in industrial production and exports in the fourth quarter, which grew 7.9%, prompting economists to forecast a slow but steady recovery in 2013

The acceleration in the last three months of 2012 followed seven quarters of slowing growth as China felt the impact of weak activity in the United States and Europe, as well as its own efforts to control a real estate boom and contain inflation.

China's manufacturing sector showed more signs of improvement this month, with a preliminary reading of purchasing managers' sentiment rising to its highest level in two years.

Inflation rose to 2.5% in December, as a spurt of extremely cold weather drove food prices higher. That compared with 2% in November, but still represents tame inflation -- the government aims to keep annual inflation below 4%.

 China is trying to rebalance its economy, placing greater emphasis on consumption. Yi said domestic demand was playing an ever more important role in the economy as growth in incomes outpaced GDP growth.

"Consumption is very robust," he said.

China would continue to aim for a reduction in its current account surplus as a percentage of GDP, he said. The figure stood at 2.8% of GDP in 2012.
 

North Korea's sole major ally China will decrease aid to Pyongyang if it goes ahead with a planned nuclear test, state-run media said in an unusually frank warning on Friday, AFP reports.

Kazakhstan and China have discussed construction of waterworks facilities at transborder rivers. January 18 Astana hosted the 10th sitting of the Kazakh-Chinese Committee for Use and Protection of Transborder Rivers, according to the Kazakh Agriculture Ministry.