Reuters reports that China's leadership is resisting pressure from elements within the military for a more forceful response to an international court ruling against Beijing's claims in the South China Sea, sources said, wary of provoking a clash with the United States...The ruling has been followed in China by a wave of nationalist sentiment, scattered protests and strongly worded editorials in state media. So far, Beijing has not shown any sign of wanting to take stronger action. Instead, it has called for a peaceful resolution through talks at the same time as promising to defend Chinese territory.But some elements within China's increasingly confident military are pushing for a stronger - potentially armed - response aimed at the United States and its regional allies, according to interviews with four sources with close military and leadership ties...Another source with ties to the leadership described the mood in the PLA as hawkish...Despite the saber rattling, there have been no firm military moves that could cause an escalation of tensions. Diplomats and sources said the Chinese leadership was well aware of the dangers of a clash.

Wall Street Journal reports that a global natural-gas glut has slowed the U.S. shale boom, but in this Yangtze River town, a Chinese one is just starting. China's state-owned energy companies, their profits decimated by the commodities bust, are pushing ahead with billions of dollars in new investment to extract gas from shale. Leading the charge isChina Petroleum & Chemical Corp., or Sinopec, which aims to double domestic gas production within five years. Sinopec's push now, amid a global oversupply of gas, presents an unpleasant surprise for an industry already in turmoil. If it succeeds, China's need for imported liquefied natural gas might dwindle—potentially jeopardizing tens of billions of dollars in planned investment from Canada to Papua New Guinea.China has huge shale reserves, but challenges from complicated geology to an inadequate pipeline network long made tapping them elusive. But with stifling pollution in many cities, natural gas offers a cleaner alternative to coal. Developing this industry will also help protect jobs at home.