There will be a harsh crackdown but the basic problems won't disappear

There will be a harsh crackdown, but the basic problems won't disappear."The Chinese video website Youku () ran footage titled "Urumqi riot" that showed smoke rising from an expressway as a firetruck stopped at the scene.An overseas Chinese news website, Boxun (peacehall ), showed pictures it said were of the Urumqi riot, including hundreds of civilians pressed against a row of police, burning wreckage on a city street, and anti-riot police in shields and helmets.Almost half of Xinjiang's 20 million people are Uighurs. There were thousands of people shouting to stop ethnic discrimination, demanding an explanation. World  |  ChinaThe official Xinhua news agency said rioters "illegally gathered in several downtown places and engaged in beating, smashing, looting and burning" in the regional capital Urumqi.The dead were "three ordinary people of the Han ethnic group," Xinhua said. BEIJING (Reuters) - Three people died in rioting in China's restive far west Xinjiang region on Sunday, state media reported, in a confrontation that underscored the tense divide there between Han Chinese and the Uighur ethnic minority.

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automaker Chrysler, has long sought a strong partner in China, where car sales are booming in contrast to slack demand in Europe and the United States.Fiat Chief Executive Sergio Marchionne said last month his company was close to a deal in China with the Guangzhou group."We're very interested in cooperation in the auto sector," Yngfu said.Marchionne wants Fiat to gain scale to face a global crisis for the industry triggered by slumping demand and a credit crunch for consumers.He bid for Opel, the European unit of General Motors Corp GMGMQ.PK, but pulled out of talks and now says he is still interested but will not improve the offer.Another Chinese car maker, state-owned Beijing Automotive, submitted a late bid for Opel on Friday, rivaling an offer from Canadian auto parts maker Magna. However, the group's first-quarter net profit fell almost50 percent, hurt by weaker revenue at its casinos in Britainand by lower plantation earnings. Genting has said that a lower-than-expected power tariffrise in China and an expected surge in costs for its new casinoin Singapore will also weigh on future earnings, raisinginvestors' concerns. But the company -- with a market value of about $6 billion-- is worth more given the growth outlook of Asia, Barron'ssaid, citing David Winters, manager of Wintergreen Fund. "This is one of the great Asian success stories," Winterssaid, quoted by the business weekly publication in its July 6edition. Genting is the only casino license holder in mostly-MuslimMalaysia, and is building a casino resort in neighboringSingapore.

(Reporting by Juan Lagorio; editing by Matthew Lewis ) Stocks Stocks. HONDURAS SAYS SMALL GROUPS OF NICARAGUAN TROOPS MOVING NEAR BORDER, BUT HAVE NOT CROSSED OVER FRONTIER. ROME (Reuters) - Car maker Fiat SpA (FIA.MI) will sign a deal for a plant in China with Guangzhou Automobile Industry Group on Monday, Chinese officials said on Sunday, an important step into a market that is booming against the trend. The company -- which also operates palm oil plantations,develops and manages property, and is in the paper,oil-and-gas, financial services, and tourism business -- hasseen its stock soar 57 percent this year to 5.80 Malaysianringgit, outperforming the Malaysia index.

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