Discovered this article through the Drudge Report.com. Actual link to article below.
A photograph was taken of the UFO hovering over Hangzhou. The capital of East China's Zhejiang province late Wednesday on July 7, 2010. Photo from Metro Express.
Xiaoshan Airport was closed after the UFO was detected at 9pm. Some flights were redirected to other cities such as Nigbo and Wuxi, said a Chinese spokesman (unnamed of course). Flights were delayed up to 3-4 hours before normal schedules were resumed. Source: China Daily(By Yang Yijun).
The UFO appears to be of the "cigar" class of object with smaller lights (windows?) above the main light/underbelly of the object.
UPDATE (July 11, 2010): From Information Dissemination.net, this is nothing more than rocket debris-they think. Link added below in Ref section.
1. People Daily (English) (http://english.peopledaily.com.cn/90001/90782/90872/7058628.html).