AP Top News at 7:40 a.m. EST

** CORRECTS TO STATE DINING ROOM ** President Barack Obama speaks before he offering a toast as he and first lady Michelle Obama, not seen, host China's President Hu Jintao for a State Dinner, Wednesday, Jan. 19, 2011, in the State Dining Room of the White House in Washington.  (AP Photo/Carolyn Kaster)
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** CORRECTS TO STATE DINING ROOM ** President Barack Obama speaks before he offering a toast as he and first lady Michelle Obama, not seen, host China's President Hu Jintao for a State Dinner, Wednesday, Jan. 19, 2011, in the State Dining Room of the White House in Washington.

President Barack Obama is looking to assure Americans that they should not fear China's economic rise, using Chinese President Hu Jintao's high-profile state visit to announce job-creating business deals worth billions of dollars to U.S. companies. On another big American concern, human rights, Hu conceded that "a lot still needs to be done" to improve China's record.

WASHINGTON (AP) — Now comes the hard part. One day after voting to repeal President Barack Obama's landmark expansion of health insurance coverage, House Republicans go to work on replacing it.

TUNIS, Tunisia (AP) — The Tunisian army fired warning shots in the capital Thursday as demonstrators marched toward the headquarters of the longtime ruling party, and government ministers quit the party in a desperate attempt to keep their jobs. Demonstrators have criticized the country's new unity government announced Monday for being mostly made up of old guard politicians from the ruling party. They are seeking the disbanding of the RCD party, founded by ousted President Zine El Abidine Ben Ali, who fled to Saudi Arabia on Friday after 23 years in power.

SEOUL, South Korea (AP) — South Korea says it has accepted a North Korean offer to hold high-level defense talks. Unification Ministry spokeswoman Lee Jong-joo said Thursday that the agenda for the talks should include North Korean assurances that it will act responsibly and not provoke tensions in the future. South Korea blames the North for two deadly attacks last year.

TUCSON, Ariz. (AP) — In the latest milestone in Gabrielle Giffords' recovery from a bullet wound to the brain, the congresswoman stood up and looked out a window even as preparations got under way for a move to Houston, where she'll undergo extensive mental and physical rehabilitation. Her swift transition from an intensive care unit to a rehab center is based on the latest research, which shows the sooner rehab starts, the better patients recover.

PHILADELPHIA (AP) — A doctor accused of running a filthy "abortion mill" for decades in an impoverished Philadelphia neighborhood delivered babies alive, killed them with scissors and allowed a woman who had survived 20 years in a refugee camp to be overmedicated and die at his clinic, prosecutors said. Dr. Kermit Gosnell, 69, was charged Wednesday with eight counts of murder for the deaths of seven babies and one patient. Nine employees also were charged, including four with murder.

NEW YORK (AP) — Nearly a year after pleading guilty in a foiled terror plot targeting the New York City subways, al-Qaida associate Najibullah Zazi hasn't been back in court and probably won't be until he's called as a witness — possibly against his own father. The elder Zazi is charged with hiding evidence in the case against his son in an obstruction of justice case headed toward trial later this year. And as part of a plea deal, the government can require his jailed son to testify at that trial or that of Adis Medunjanin, an alleged accomplice in the plot to blow up the subways with homemade backpack bombs.

KARACHI, Pakistan (AP) — The four men imprisoned for killing Wall Street Journal reporter Daniel Pearl were not present during his beheading but were convicted of murder because Pakistani authorities knowingly relied on perjured testimony and ignored other leads, says a report released Thursday. The results of the Pearl Project, an investigation carried out by a team of American journalists and students and spanning more than three years, raise troubling questions about Pakistan's dysfunctional criminal justice system and underscore the limits U.S. officials face in relying on Pakistani authorities.

NEW YORK (AP) — It's a kinder "American Idol" without Simon Cowell. Television's top show returned Wednesday with a makeover for its 10th season on Fox. Cowell, everyone's favorite villain, is gone as a judge. So are Kara DioGuardi and Ellen DeGeneres, replaced with the star power of Jennifer Lopez and Aerosmith's Steven Tyler. Original judge Randy Jackson remains.

MELBOURNE, Australia (AP) — If Rafael Nadal is getting nervous as he eases closer to winning his fourth consecutive Grand Slam, he sure isn't showing it. After his 6-2, 6-1, 6-1 win Thursday over American qualifier Ryan Sweeting, the Spanish star appeared as comfortable talking about his next match — against 18-year-old Australian Bernard Tomic — as he was in beating Sweeting so convincingly.