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The Chinese balloon, of the size of three buses, laced with a significant number of payloads will probably be over the United States for a few days, the Pentagon said.
The incident recalls the lengths to which Beijing and Washington have been willing to go to spy on each other amid rising tensions between the superpowers.
The last time China is believed to have recorded a population decline was during the Great Leap Forward at the end of the 1950s.
A health official said on Saturday that COVID fever and emergency hospitalisations had peaked and the number of hospitalised patients was continuing to decline.
Infections are expected to surge in rural areas as hundreds of millions travel to their home towns for the Lunar New Year holidays, which officially start from Jan. 21, known before the pandemic as the world's largest annual migration of people.
Health experts and countries such as the United States and Japan have expressed concern over how the virus is largely unchecked across the world's most populous country.
The complete scrapping of the travel rules comes at a time China is grappling with a sudden spurt in coronavirus infections.
Beijing's abrupt axing of "zero COVID" curbs last month has unleashed the virus on China's 1.4 billion people who have little immunity after being shielded since the virus emerged in the Chinese city of Wuhan three years ago.
His Holiness was said Buddhism had underwent so much suppression and oppression in China.
Official COVID-19 figures from China have become unreliable as less testing is being done across the country following the recent easing of the "zero-COVID" policy.