The Associated Press reports: "Japan protested to China on Thursday, after spotting a Chinese warship for the first time near disputed islands in the East China Sea....Japanese officials said a Chinese navy frigate was seen off the coast of the Japanese-controlled Senkaku islands, also claimed by China and called the Diaoyu islands. The ship didn't violate Japan's territorial waters, and it has since left the area....Chief Cabinet Secretary Yoshihide Suga criticized Beijing for escalating regional tension. 'Japan is extremely concerned about the action that unilaterally escalates tension in the area,' Mr. Suga said."
The Financial Times reports: "The chief economist for China's central bank forecasts that the economy will grow 6.8 per cent in 2016, well ahead of independent estimates from the International Monetary Fund and most private economists....After a bout of currency depreciation and weak data earlier in the year, sentiment towards China has improved in recent weeks as the latest data suggest government stimulus efforts have helped prevent a sharp fall-off in investment....'The strength of fiscal policy has been increased, and real estate and infrastructure investment have accelerated, but private investment remains weak,' the research bureau, led by China economist Ma Jun, said in its report....The new forecasts come as inflation data on Thursday showed wholesale price deflation pressures easing in May, a positive sign for China's struggling manufacturing sector."
The Wall Street Journal reports: "A high-speed rail agreement touted as a symbol of U.S.-China cooperation has fallen apart less than a year after it was signed. XpressWest, a private U.S. company, said Thursday that a venture with China Railway International to build a high-speed rail line to link Southern California with Las Vegas won't proceed. In a statement, the U.S. company said it terminated the partnership due to 'difficulties associated with timely performance' and its Chinese partner's challenges in obtaining necessary approvals to proceed with the project....Xinhua, the government's news agency, cited a China Railway International manager as saying that the U.S. company's move was 'precipitate' and 'irresponsible' and that the Chinese side would seek to defend its interests."