Reuters reports, "China's Defense Ministry on Thursday accused the United States of 'militarizing' the South China Sea by staging patrols and joint military drills there, ramping up the rhetoric ahead of a key regional security meeting in Malaysia next week. China has repeatedly urged Washington not to take sides in the escalating maritime dispute over the area, where the Asian giant last year stepped up its creation of artificial islands, alarming neighbors and provoking U.S. criticism. Washington has demanded China halt land reclamation and militarization of the disputed area and pursue a peaceful resolution according to international law. China has been angered by U.S. navy and air force forays through waters it claims as its own, especially this month, when U.S. Navy Admiral Scott Swift said he joined a routine surveillance flight."
The New York Times writes, "Days after a court in Myanmar sentenced more than 150 Chinese citizens to life in prison for illegal logging, resulting in objections from Beijing, the national government said on Thursday that they would be freed as part of a broader amnesty. Hong Lei, a spokesman for the Chinese Foreign Ministry in Beijing, said Myanmar had notified China that the amnesty for nearly 7,000 prisoners, which Myanmar had announced earlier in the day, would include the Chinese loggers. China had been in "close communication" with Myanmar over the issue, Mr. Hong said. The Chinese were arrested in January on suspicion of illegal logging in Kachin State, which borders Yunnan Province in China. Kachin is rich in natural resources, including jade and wood, and many Chinese cross the border from Yunnan to capitalize on that."
The Wall Street Journal reports, "Bets are rising that China's currency is headed lower with its stock market, a signal of waning investor confidence in the country's ability to manage its economic slowdown and market turmoil. Activity has ramped up in the yuan options market, where investors are taking positions to protect against a potential weakening of the yuan against the U.S. dollar over the next three to six months. Those bets have increased after Beijing last week announced measures to support China's flagging trade sector, including allowing a more market-driven currency. 'The market is implying that a lot of people are expecting a depreciation,' said Cynthia Wong, who heads Société Générale SA 's emerging market Asia fixed income and currencies trading in Hong Kong and Singapore. Ms. Wong said hedge funds have gotten more active over the last couple of weeks, helping send trading volumes of yuan and offshore yuan options up as much as 40%."