He also said that the arrest of a Chinese fishing boat captain that sparked the current row between the Asian giants was appropriate, the report said.

The skipper, who was released last week, had been arrested on September 8 after colliding with two Japanese coastguard vessels in the East China Sea near a disputed island chain known as Senkaku in Japan and Diaoyu in China.

In the worst dispute in years between Asia's traditional rivals and biggest economies, China has called the skipper's arrest invalid and illegal, arguing that the islands have been part of China since ancient times.

Beijing has lodged a series of diplomatic protests, snubs and threats.

Industry sources say China has halted crucial rare earth mineral exports to Japan, a claim that Beijing has denied.

China is also holding four Japanese nationals -- employees of a company working on a bid to clean up wartime-era Japanese chemical weapons -- after detaining them last week for allegedly filming a military installation.

Japan Monday demanded full consular access to them, and it also called on China to pull back two fisheries patrol boats from near the disputed islands.

Late last week Japan freed the Chinese captain, who was greeted to a hero's welcome at home, where the case has stoked patriotic fervor and anti-Japanese sentiment, expressed both in blogs and small street protests.

China responded to the captain's release early Saturday by demanding Japan apologise and compensate China for his arrest and detention.

As the dispute has escalated, Washington -- which openly worries about China's growing military muscle -- has reaffirmed its commitment to a half-century-old security alliance with Japan.

Russian Foreign Minister Sergei Lavrov on Monday called on China and Japan to "seek compromises" in the dispute.

earlier related report
ADB says long-term growth top priority for developing Asia
Hong Kong (AFP) Sept 28, 2010 - Asia's developing economies should make long-term growth their top priority, the Asian Development Bank said Tuesday as it lifted its 2010 growth forecast for the region.

The economies would expand by 8.2 percent in 2010, up from the bank's 7.5 percent forecast earlier this year, as the trade-driven region "recovered from the global (financial) crisis with remarkable speed and vigour," the ADB said in its twice-yearly economic forecast.

Growth would slow to 7.3 percent in 2011, while inflation would remain within the central banks' "comfort zones" of an average 4.1 percent this year and 3.9 percent in 2011, the report said.

"Overall, developing Asia's recovery seems to have taken a firm hold," the bank said in its Asian Development Outlook 2010 Update.

"As the global crisis recedes, medium and long-term growth will reassert itself as the region's top macroeconomic priority."

The latest forecast remained below the region's record 9.6 percent expansion in 2007.

"Strong and sustained growth is critical for developing Asia's future prosperity," ADB chief economist Jong-Wha Lee said in a statement.

"Despite its rapid pre-crisis growth and resilience during the crisis, the region lags far behind the industrial economies in per capita income and remains home to two-thirds of the world's poor."

The Manila-based bank's report looked at 44 jurisdictions stretching from the former Soviet states of Central Asia to some Pacific islands, but excluded developed countries such as Japan, Australia and New Zealand.

Policymakers should focus their attention on the region's shifting economies because "policies which were effective in earlier years' low-income, capital-scarce Asia are likely to be less effective in today's middle-income, capital-abundant Asia."

"Promoting productivity is set to become a more influential driver of the region's growth," the report said.

Trade would continue to be a major economic driver, but countries should diversify their export base and focus on inter-regional trade, it said, amid worries about a faltering economic recovery in industrialised nations.

A changing labour market would require better educated workers, while urban congestion and environmental problems threatened to curb developing Asia's growth, the report said.

"In order to keep Asian cities competitive, infrastructure investments must effectively tackle congestion, environmental degradation, and other costs associated with urbanisation," the report said.

East Asia -- including Hong Kong, China, South Korea, and Taiwan -- is forecast to lead the region with an 8.6 percent rise in gross domestic product in 2010, up from the bank's earlier 8.3 percent forecast, the report said.

Southeast Asian economies will grow by 7.4 percent in 2010, up from an earlier estimate of 5.1 percent, as countries including Thailand, Malaysia and Vietnam see an upswing in their exports, the bank said.

India will lead South Asia's 7.8 percent GDP increase this year, the bank said, up from its previous 7.4 percent forecast.

Central Asia, including Kazakhstan and Azerbaijan, will see 5.1 percent growth compared with the earlier 4.7 percent estimate, the bank said.

Pacific island nations, including Fiji and Papua New Guinea, are expected to see their economies grow by 4.3 percent in 2010, outpacing a 3.7 percent rise forecast earlier, the report said.

del.icio.us	Digg	Reddit
YahooMyWeb	Google	Facebook

Memory Foam Mattress Review

SPACE MEDIA NETWORK PROMOTIONS Solar Energy Solutions Tempur-Pedic Mattress Comparison ... Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News