CNN reports: "Chinese stocks plunged deeper into negative territory Monday after a brutal first week of the year. The Shanghai Composite closed down 5.3%, and the Shenzhen Composite ended 6.6% lower...The turmoil in Chinese markets rippled out around the globe: the Dow lost 1,079 points, or more than 6%, over the week -- the index's worst five-day start to a year on record. The chaotic trading in China was made worse last week by a so-called "circuit breaker" mechanism introduced by authorities in an effort to reduce the volatility that had characterized the country's stock market rout during the summer...At the heart of the tumult are a series of drops in the value of the country's currency, the yuan. In recent weeks, the central bank has attempted to guide the yuan lower against the U.S. dollar, a move that many analysts have interpreted as an effort to aid Chinese exporters and prop up weakening economic growth."
The Washington Post reports: "South Korea unleashed an ear-splitting propaganda barrage across its border on Friday in retaliation for North Korea's recent nuclear test, while pressure grows on China to intervene...Wednesday's nuclear test angered China, North Korea's main economic and diplomatic backer. Although relations between the Cold War allies have cooled in recent years, Beijing is considered key to pressuring Kim Jong Un's government. China's Foreign Ministry has urged North Korea to stick to its denuclearization pledges and avoid action that would make the situation worse, but it also has said that pressure from Beijing alone cannot solve the problem."
The Wall Street Journal reports: "China defended recent test flights to a disputed reef in the South China Sea as sovereign activity, rebuffing Vietnam's criticisms that the flights were unannounced and contravened international rules on aviation safety. Chinese foreign ministry spokesman Hong Lei said Monday that China's aviation regulator had notified its Vietnamese counterpart about the flights Dec. 28 and that a follow-up technical briefing with diplomats occurred two days later. Mr. Hong said, contrary to Vietnam's assertions, that the flights are exempt from international civil-aviation rules because they were 'totally within China's sovereignty.'"