China celebrates national day

This year is special as top leaders should retire

Millions of Chinese are starting a week-long holiday to mark the country's national day.

The celebrations, which mark the 53rd anniversary of the founding of the People's Republic of China, comes just weeks before a key Congress which is expected to announce big changes in the country's leadership.

President Jiang Zemin is expected to retire as party leader and begin the transfer of power to Vice-President Hu Jintao.

Mr Jiang is expected to stand down from the presidency next year.

There was a minor protest in Hong Kong

"Our people are self-confident amid rumours outside the country about the expected passage of the leadership to the next generation during the 16th National Congress," the China Daily newspaper said on Tuesday.

"We have proceeded so far down the road of reform and opening up that nobody can reverse the trend. Everybody believes that."

In Taiwan, outspoken Vice President Annette Lu congratulated China on its national day but called on China to drop its territorial claims on the island.

"China is emerging a rich and powerful country... as the result of hard work and struggle by the Chinese Government and people, and we admire them for such," she said.

"(But) leaders of both sides should realise that... the historic concept of territorial claim is outdated in the new age of globalisation."

Flag burned

Taiwan and China separated in 1949 following a civil war, but China regards Taiwan as a renegade province. It has threatened to reclaim the island by force if Taiwan tries to declare independence.

Ms Lu, disliked in Beijing for previous comments supporting Taiwanese independence, said the two sides should work towards a peaceful co-existence.

She said Taiwanese businesses had helped boost economic prosperity on the mainland by investing in high-tech and other industries.

As the celebrations began in mainland China, there was a noisy protest by about 20 pro-democracy activists in Hong Kong.

Following a minor scuffle with police, a small group of the demonstrators set fire to the Chinese flag - an act which is illegal in the territory.

They were demanding an explanation for the suppression of pro-democracy rallies in Tiananmen Square in Beijing in 1989.