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Diplomatic envoys’ Hainan tour deepens business cooperation thanks to high-quality BRI development

A delegation comprised of more than 25 diplomatic envoys from 15 countries, including Madagascar, Finland, Bulgaria, Cambodia, Belarus and Germany, engaged in a five-day tour of South China's Hainan Province from April 22 to 26. Photo: MaTong/GT

A delegation comprised of more than 25 diplomatic envoys from 15 countries, including Madagascar, Finland, Bulgaria, Cambodia, Belarus and Germany, engaged in a five-day tour of South China’s Hainan Province from April 22 to 26. Photo: MaTong/GT

A delegation comprised of more than 25 diplomatic envoys from 15 countries, including Madagascar, Finland, Bulgaria, Cambodia, Belarus and Germany, engaged in a five-day tour of South China’s Hainan Province from April 22 to 26, aiming to delve into the island’s multifaceted developmental strategy and tap more business opportunities there.

Hainan, China’s southernmost province, was once a key node of the Ancient Maritime Silk Road. Presently, it stands as a hub for the China-proposed Belt and Road Initiative (BRI) and serves as a gateway for the country’s international outreach, particularly towards the Pacific and Indian Oceans.

Acting as a “bridge” connecting the Chinese mainland and Southeast Asia, Hainan is playing a crucial role in deepening China-Indonesia economic cooperation with its complete policy package, Parulian George Andreas Silalahi, minister of the Embassy of the Republic of Indonesia in China, told the Global Times after a free trade port (FTP) policy briefing on Monday.

During the policy briefing, which was the kick-off event for the visit, provincial officials introduced the FTP preferential policy system focused on special tax measures and facilitation for the flow of trade, cross-border capital, personnel and transportation, and data.

“I can see the full potential of Hainan becoming a game changer or a global player not just in China, but in the broader regional and global setting,” Silalahi said, adding that as tropical islands, Indonesia and Hainan possess numerous similarities and significant potential for collaboration in tropical agriculture and deep-sea exploring.

As part of China’s relentless drive to enhance opening-up, the province is dedicated to establishing an FTP with Chinese characteristics and global influence. Preparations for island-wide special customs operations before the end of 2035 are in full swing, highlighting a key priority in the provincial government’s agenda, Feng Fei, secretary of Hainan’s CPC Provincial Committee, noted during a meeting with the diplomats.

Madagascar, another BRI partner country, is exploring the establishment of economic zones and an FTP, inspired by Hainan’s example, Jean Louis Robinson, ambassador of the Republic of Madagascar to China said on Tuesday, noting mutually beneficial cooperation between the two countries is poised to set a model for international collaboration.

Hainan is making an all-out effort to benchmark itself against the highest level of opening-up in the world. Investors worldwide are welcomed to conduct business and engage in the construction of the Hainan FTP, Chen Huaiyu, vice governor of the Hainan provincial government said.

High-quality opening-up 

Since the announcement of the establishment of the FTP in 2018, the number of new foreign-funded enterprises in Hainan has grown at an average annual rate of 65 percent, with a total of 6,543 foreign-funded enterprises now operating across the island, according to official data, showcasing the fruitful results led by its long-term endeavors in high-level opening-up, the vice governor said.

Indonesia, the largest economy in ASEAN, is also a key pivotal node in the Maritime BRI. The China-Indonesia relationship is advancing, Silalahi told the Global Times, adding that in March, an Indonesian business delegation visited a valley village in Hainan for collaborative initiatives. “Now the village serves as a hub for Indonesian products promotion in Hainan.”

As the acceleration of bilateral economic ties, the trade volume between Hainan and ASEAN saw a surge in the first quarter of 2024, the import and export value amounted to 107.9 billion yuan ($14.89 billion), representing a 33.5 percent growth year-on-year, accounting for 16.8 percent of the province’s total foreign trade. ASEAN remains Hainan’s largest trading partner, official data showed.

Belarus is an active proponent of the BRI and was among the first nations to endorse it, Andrei Povov, consul general of the Consulate General of the Republic of Belarus in Guangzhou, told the Global Times, noting the vast potential to enhance logistics connections between the two countries by leveraging FTP’s policy advantages, which would significantly facilitate bilateral trade and result in mutual benefits.

“We have a positive track record of cooperation with China. Progress has also been noted in automobile manufacturing, new energy vehicles, biotechnology, and medical device sectors,” Povov said, positive outcomes are also expected in food processing, he added.

A Belarusian delegation participated in the recently concluded China International Consumer Products Expo (CICPE) in Haikou, the capital city of Hainan, and showcased their products, expecting to tap the huge Chinese market. “These examples demonstrate the extensive opportunities for trade cooperation within the Hainan FTP,” Povov noted.

Cooperation under BRI framework 

Throughout the five-day visit, the diplomatic envoys toured high-tech industrial parks, medical tourism pilot zones, and education innovation pilot zones in Hainan. Among the highlights were the cutting-edge future industries representing the new quality productive forces, such as aerospace supercomputing, deep-sea explorations, digital economy, and green and low-carbon technology.

China’s industrial parks prioritize high-end, advanced production in sectors such as new materials, electronics and smart logistics, making it a promising place for cooperation, Povov said, noting that the two countries have multiple bilateral platforms in operation, such as the flagship project of BRI-China-Belarus Industrial Park, jointly launched by the leaders of both nations in 2015.

Other emerging platforms at the regional level, such as the Hainan FTP, are also taking shape and offer numerous opportunities. Recent collaboration includes a delegation from West Belarus’s Grodno, visiting its sister city Haikou for productive economic and cultural talks, he noted.

At this year’s Boao Forum for Asia (BFA) held in Hainan, the high-quality construction of the BRI was a widely discussed topic, highlighting the facilitations for green economy and digital BRI construction, according to media reports.

This most recent diplomatic tour once again highlighted the theme of high-quality BRI development. Following the visit to Hainan’s Yazhou Bay Science and Technology City on Wednesday, Silalahi noted that he was highly impressed with China’s high-tech advancements and “very happy for China-Indonesia’s joint exploration in the uncharted deep sea.” 

The two countries completed a month-long joint dive expedition on March 23 in the Java Trench, which is located in the eastern Indian Ocean. Using China’s homegrown deep-sea manned submersible “Fendouzhe” submersible, researchers dove to a depth of 7,178 meters, setting a new deep-sea diving record for Indonesia, setting a record for deep-sea exploration in Indonesia.

Côte d’Ivoire is also a BRI partner and is home to a multitude of manufacturing projects which the two countries have jointly established. Thanks to the increasing cooperation, Côte d’Ivoire has emerged as one of the most advanced countries in West Africa, Gomun Kouya Bertin, counselor of the Embassy of the Republic of Côte d’Ivoire in China, told the Global Times after visiting an education innovation pilot zone in Hainan.

“High-level education cooperation was a primary focus during my visit to Hainan,” Bertin said, noting that China and Cote d’Ivoire have established a memorandum of education cooperation, there has been a significant increase in the number of Cote d’Ivoire students studying in China following the end of the pandemic.

During the five-day visit, the diplomatic delegation explored Hainan’s leading enterprises in commercial aerospace, biopharmaceuticals, health care, international education, and deep-sea exploration, immersing themselves in the onsite of the FTP construction and unlocking more cooperation opportunities in Hainan. 

Global Times

29/04/2024 by news

China’s capacity remains a strong engine for global energy transition: Global Times editorial

Photovoltaic panels in Sihong, East China's Jiangsu Province Photo: VCG

Photovoltaic panels in Sihong, East China’s Jiangsu Province Photo: VCG

The 26th World Energy Congress has been held in Rotterdam, the Netherlands, in recent days. As one of the most important conferences in the field of energy, the conference is themed “Redesigning Energy for People and Planet,” and attracted nearly 20,000 representatives from the global energy sector to discuss the energy transition, security, accessibility and sustainability in the current world.

This year marks the 100th anniversary of the World Energy Congress. The world is at a crucial turning point in energy transition, which is recognized by the industry as a key moment for proposing and implementing major changes. The conference provides timely information for the general public to understand the current situation of the global energy transition.

Undoubtedly, the most prominent issues and concerns throughout the Congress remain the challenges posed by climate change and the urgency and uncertainty of energy transition. Specifically, it is about how to address the “trilemma” of global energy security, affordability, and sustainability, and to realize a faster, fairer and broader energy transition. Throughout the world, considering the target of achieving the Paris Agreement’s goal of limiting the temperature increase, and achieving the carbon peaking and neutrality commitments made by many countries, the current global resource inputs in the field of energy transition and clean energy, as well as the related supply of green and low-carbon products, are far less than the demand.

Against this background, the current hyping by the US and some other Western countries about “overcapacity” in China’s solar panels and electric vehicles (EVs), and their attempts to build trade barriers in the clean energy sector, have also received attention and been discussed. Among them, Saudi Aramco CEO Amin Nasser’s relevant remarks have particularly triggered attention and resonance. Nasser spoke highly of China’s key role in driving the global energy transition at the World Energy Congress, noting in particular that China will substantially help Western countries achieve their target of cutting carbon emissions to a net zero level by lowering the cost of solar panels and electric vehicles.

Nasser’s remarks have attracted attention not only because of his own status and Saudi Aramco’s special position in the energy field, but also because of his fair assessment of China’s efforts in clean energy and global emissions reduction. China’s capacity and technological breakthroughs in the clean energy sector have become a powerful engine driving global energy transition. According to statistics, over the past 10 years the average electricity costs of global wind and photovoltaic projects have cumulatively decreased by over 60 percent and 80 percent, respectively, with a considerable portion attributed to China’s contributions. Leveraging its vast market scale, efficient supply chain management, and technological innovation capabilities, China has successfully reduced the costs of solar panels and EVs significantly, enhancing the affordability of these new energy products. This not only reduces its own carbon emissions but also provides global consumers with more economical and environmentally friendly choices.

The transition of energy is not an easy task. It is both extremely urgent and exceptionally complex, requiring a comprehensive strategic approach. The appreciation from Saudi Aramco, represented by Nasser, toward China stems from the recognition by Saudi Arabia, other Middle Eastern countries, and many other developing nations of China’s indispensable role in energy transition. For instance, the Al Shuaibah photovoltaic power station project constructed by Chinese enterprises in Saudi Arabia will, upon completion, reduce carbon dioxide emissions by 245 million tons in 35 years, equivalent to planting 545 million trees. In 2022, the wind and photovoltaic products exported by China helped other countries reduce carbon dioxide emissions by approximately 573 million tons, totaling 2.83 billion tons of carbon reduction, accounting for about 41 percent of the global carbon reduction volume brought by renewable energy during the same period.

However, considering the urgent global situation in addressing climate change and the current status of green capacity in various countries, whether it is achieving the goals of the Paris Agreement globally or China achieving its own “dual-carbon” goals, China’s current green capacity still falls far short of meeting the needs. The International Energy Agency (IEA) has warned that the current use of fossil fuels remains “excessive.” In this context, the challenge facing humanity is not an “overcapacity” of green production but a severe shortage. China’s green capacity is undoubtedly the “magic weapon” for addressing challenges, and displacing high-quality capacity is irrational. It is the optimal solution for global emission reduction to enable China’s green capacity to play to its strengths and complement and coordinate cooperation with the capacities of other countries.

The US and some countries, from the perspective of protecting their own industries and suppressing Chinese advantageous industries, attempt to stifle the development of China’s clean energy industry with the so-called “overcapacity” narrative. However, from a global perspective, especially from the standpoint of many developing countries and the “Global South,” this undermines the goal of a faster, fairer and more widespread energy transition. Faced with the common challenge of climate change, promoting energy transition should uphold an open and cooperative attitude, rather than getting bogged down in futile trade disputes and blame games, otherwise it will only hinder the pace of global energy transition.

25/04/2024 by news

US accusation of ‘overcapacity’ in China a discourse trap to contain green industries: expert

Workers assemble a new-energy vehicle (NEV) in a factory in Jinhua, East China's Zhejiang Province on October 25, 2023. In the first nine months of this year, China exported 825,000 NEVs, data from the China Association of Automobile Manufacturers shows. Photo: VCG

Workers assemble a new-energy vehicle (NEV) in a factory in Jinhua, East China’s Zhejiang Province on October 25, 2023. In the first nine months of this year, China exported 825,000 NEVs, data from the China Association of Automobile Manufacturers shows. Photo: VCG

The penetration rate of China’s passenger new-energy vehicles (NEVs) exceeded 50 percent in the first half of April, as reported by China Central Television (CCTV) on Sunday, outperforming traditional fuel passenger vehicles and marking the rapid development of the NEV sector in China amid full market competition.

The US accusation of “overcapacity” in China is a discourse trap that aims to contain China’s development of green industries amid its growing international competitiveness, Chinese observers said, stressing that the increasing self-isolation of the US will disrupt global automobile industrial and supply chains and eventually harm the interests of American consumers.

From April 1 to 14, retail sales of passenger NEVs stood at 260,000 units, up 32 percent year-on-year, according to data from the China Passenger Car Association. 

It means that the penetration rate of passenger NEVs reached 50.39 percent, state broadcaster CCTV reported on Sunday.

The latest data underscored the rapid development of China’s NEV sector amid market competition, with more consumers choosing to buy NEVs due to their lower prices, better experience and other factors, Wu Shuocheng, a veteran automobile analyst, told the Global Times on Sunday.

“There is no such thing as ‘overcapacity’ in China’s NEV sector, although the supply of cars sometimes outpaces demand due to market fluctuations. The production capacity [of NEVs] that could meet consumers’ upgrading demand remains insufficient,” Wu said.

While the US has kept hyping the “overcapacity” issue, China has opened its door wider and wider. In 2019, US carmaker Tesla built its first Gigafactory outside the US in Shanghai, which gave a boost to the development of the NEV industry amid competition.

Tesla on Sunday cut the price of its Model 3 from 245,900 yuan ($34,630) to 231,900 yuan, and now offers the Model Y from 249,900 yuan onward, compared with 263,900 yuan previously, according to the company’s China website.

Li Yong, a senior research fellow at the China Association of International Trade, attributed the advantages of China’s NEV industry to technological accumulation, globally competitive industrial clusters and agile supply chains.

“Compared with some countries that have failed to develop industrial chains or key technologies during the development of the NEV industry, China has achieved a globally leading position in innovation, technology application and interior design, enabling Chinese NEVs to meet the demand of international consumers,” Li told the Global Times on Sunday.

The US hyping of China’s “overcapacity” is a discourse trap that aims to curb China’s NEV exports and contain China’s NEV development, Li said. He said that the ratio of exports to production for Chinese NEVs is far lower than those of Germany, Japan and South Korea. 

“If these countries haven’t seen overcapacity, the US shouldn’t put that label on China,” he said.

According to a forecast by the International Energy Agency in 2023, global sales of electric vehicles are set to reach 45 million in 2030. That is about 4.5 times the sales recorded in 2022, underscoring that the global supply of new-energy products is not in excess but is actually insufficient.

“By resorting to protectionist measures, Washington’s resistance to competition for the nurturing of the backward local industry will harm the technological advances by the US and disrupt global industrial and supply chains,” Li said.

China’s Foreign Ministry on Friday blasted the US accusation of “overcapacity” in China as “economic coercion and bullying.” 

“Those who use overcapacity to justify protectionism have nothing to gain and will only destabilize global industrial and supply chains, harm emerging sectors and hinder the world’s climate response and green transition,” the ministry said.

22/04/2024 by news

Current geopolitical battles a zero-sum game

Illustration: Chen Xia/Global Times

Illustration: Chen Xia/Global Times

February saw a cohort of European students descend on Beijing to take part in a semester abroad study program organized by Chinese universities in conjunction with sister institutions in Europe. Despite studying different majors, the students had also chosen to incorporate not just the Chinese language into their degree studies, but also an understanding of the history and culture of China.

For students like Gideon Redwitz, a German doing his study abroad semester at Peking University, it is more than just a smart career move; the study abroad program will go a long way toward creating understanding on an interpersonal level for Gen Z students in Germany and China.  

Gideon has admittedly had various conversations about China with his father, and unsurprisingly, their viewpoints are vastly different. While his father is far more antagonistic toward China, Gideon takes a far more pragmatic approach, advocating a view that is based on facts rather than on West-versus-East bloc politics. 

Gideon’s conversations with his father are a microcosm of a change in attitude toward how global politics should be handled among the younger generation. Gen Zers are dismantling and questioning established systems of global governance that advocate for animosity rather than cooperation. They are ready to steer the ship in a whole new direction.

For far too long, global political and financial oligarchies have built bulwarks on the shifting sands of panic and fear. Every so often, or even every generation, the foundations upholding unsustainable political and financial systems are reinforced with another once-in-a-generation panic, whether it be the great fear of communism that permeated throughout much of the West for over 50 years, birthing McCarthyism in the US, or speculative market bubbles and imminent financial collapse that led to the 2008 economic crash.

Conspicuously, however, is how for all their doom forecasting and post-hoc proselytizing, the oligarchs benefit tremendously, harvesting big from violent conflict, a la the military-industrial complex, and the financial demise of large swathes of society as has been seen when banks rather than regular people are bailed out after each financial crash.

No more, say Gen Zers who are working to pull the wool from societies’ eyes, breaking with the toxic political and financial status quo that only benefits those at the very top of the pyramid. This generation has been widely maligned in the media worldwide by the old guard who accuses them of all manner of unimaginable evils, from an unwillingness to “go above and beyond” as did the generations before them who gave too much for very little in return, to being “snowflakes,” a term coined by political talking heads in the US to describe individuals who are sensitive to social injustice.

Far from these characterizations of egotistical bad-faith actors only too eager to break with tradition, Gen Zers are eager to preserve what is good about society, while doing away with what seems amiss. 

This trend has been seen across the world, with Gen Zers from China and Australia to the UK and the US railing against overwork, resulting in a change in labor laws that see workers’ off-duty time respected and protected, as just one example. And in the same way that they are questioning toxic workplace culture, so too are they questioning long-standing geopolitical feuds, carried on by successive governments with no real tangible benefits for regular citizens.

It is increasingly clear that much of the insistence on tradition and precedence is an exercise in hubris by political fogies who wish for current unipolar systems to remain. Gen Zers, however, have more questions as to why the status quo must remain than those fighting to uphold it have answers. Initiatives like the China-proposed Belt and Road Initiative (BRI) are proving there are mutually beneficial alternatives, as opposed to outmoded notions that only a few and deserving countries or peoples should and can benefit from global systems.

The generation is also questioning social and financial policies that are no more than a kicking of the proverbial can further down the road, with successive governments in certain countries instituting piecemeal changes, using the promise of more substantive reform as currency to buy another term in office. Nowhere has this been more exemplified than in matters of climate change, in which many world leaders continue to drag their feet. But Gen Zers are clear that the permanent effects of inaction in this matter will affect them far more than it will the current generation of “Boomer” politicians, many of whom remain unconvinced about the science.

Millennials and Gen X before them bought into the capitalist fallacy, and they too have spoken out, passing on the lessons they learned so that Gen Z does not fall for the same sleight of hand. The commingling of “big man” politics with a pseudo-assurance of a guaranteed future is being challenged. Outmoded ideas of top-heavy capitalism are being set aside, and a world where one has to choose one side over another based solely on political affiliation is coming to an end. Gen Zers see the world for what it is, and for what it could be, and refuse to live in the reverie of a glorious past constantly reinvented to fit new hateful narratives about the presumed competition.

Living in the information age has also worked to help Gen Zers dispel misinformation and disinformation. Whereas before conspiracy theories and false narratives about countries and peoples were hard to disprove, now a quick internet search will set the record straight. Social media platforms like TikTok and its Chinese counterpart Douyin, among others, do not show that the grass is greener on the other side, but rather what other shades of green exist around the world. Differences are viewed through a more globalized lens that allows coexistence and encourages curiosity about other countries’ cultures and peoples.

Though accused of apathy, Gen Zers do care deeply about global issues like global governance and climate change but refuse to fall prey to mawkish political rhetoric promising them a tomorrow that never comes. They want change here and now, and as the most educated generation in history, they have the facts at their fingertips to effect the changes needed, if only they were given the chance. Where previous generations would have viewed geopolitical conflicts as fodder for the growth of national status and pride, Gen Zers see the reality of assured mutual destruction, and demand for peace and pluralistic coexistence.

Research shows that, with very few exceptions, Gen Zers globally are far less radicalized than their parents, hold far fewer political hardlines than generations before them, and are more inclined to globalization as inspired by an eschewing of nation-state individualism and generic-brand democracy. For the younger generation, it is clear: The path forward is not to work in opposition to one another. Like rowers on the same boat, it serves no purpose for each to row in an opposite direction. That only sends the boat spiraling before it capsizes. Instead, rowing toward a common goal of a mutually assured prosperous future, of halted climate change, and of moderate prosperity for all is the way to go.  

The author is an editor of the Global Times. [email protected]

22/04/2024 by news

China’s new quality productive forces provide opportunities to world, making high-tech more affordable

A visitor takes photos of an automated production line on display at the 135th session of the Canton Fair in Guangzhou, South China's Guangdong Province, on April 16, 2024. Photo: Chi Jingyi/GT

A visitor takes photos of an automated production line on display at the 135th session of the Canton Fair in Guangzhou, South China’s Guangdong Province, on April 16, 2024. Photo: Chi Jingyi/GT

A large number of foreign buyers were attracted by an intelligent forklift automated guided vehicle (AGV), stopping to watch and take photos and videos, upon entering the exhibition hall of intelligent automation and intelligent manufacturing at the ongoing 135th session of the Canton Fair.

But the buyers soon saw that industrial robots, automatic production lines and many other types of high-end manufacturing equipment are waiting to be explored. 

These high-tech products are a vivid display of China’s new quality productive forces, which not only empower the country’s economic transformation and high-quality development but can fuel the development of modern and intelligent industrialization around the world, especially in developing countries, said exhibitors and buyers.

“Following in the footsteps of many of our Chinese customers who built factories overseas, our intelligent forklift AGVs are going global to help make our customers’ factories more intelligent and automated,” Ma Feifei, brand director of Hefei Gen-song Intelligent Technologies Co, told the Global Times on Tuesday.

This has helped all countries and regions, especially developing ones, achieve industrialization, and enhanced the resilience and stability of industrial and supply chains in the world, said Ma, adding that Gen-song had received more than 100 inquiries about its products as of Tuesday, the second day of the Canton Fair.

“All of our AGVs are self-developed, including the brain – the control processors inside the AGVs,” Ma noted.

Andy Lee, sales manager of Zhejiang Jinaolan Machine Tool Co, told the Global Times on Tuesday that the company’s production lines for stamping were self-developed. 

Jinaolan is a supplier to manufacturers of new-energy lithium batteries, home appliances, automobiles and other items. Its fully automatic production line can eliminate about seven jobs, said Lee.

“Our annual export value is about 50 million yuan ($6.9 million) to 100 million yuan. This is our third time participating in the Canton Fair, and more and more overseas buyers have come to see our products. We have received some inquiries from buyers from Russia, Southeast Asia and Africa,” said Lee.

With more and more advanced technologies, together with China’s world-leading manufacturing level and stable supply chains, Chinese enterprises are making high-tech products more affordable for the world, industry insiders told the Global Times.

“The automation of loading goods from production lines to trucks is currently a gap in world logistics. Our products fill this gap. Many overseas buyers made inquiries these past two days, and many of them want to be our overseas agents. We have already received orders from Germany and Southeast Asian countries,” Liu Jinshi, chief engineer of Ston Robotics Changzhou Co, told the Global Times on Tuesday.

According to Liu, after the products come off the production line, the world uses forklift workers to put them onto trucks for shipping, which takes about three hours with one worker. It’s hard for AGVs to complete the complicated process. 

“The product we showcase – a gantry logistics robot – is an automatic product for loading, which can complete the loading operation in one or two minutes, fully automatically. 

“More importantly, the cost of our equipment is repaid in about a year, which is affordable for most factories,” said Liu, noting that their first participation in the Canton Fair is anticipated to be successful.

The gantry logistics robot was released last October after about seven years of research and development, Liu said.

The 135th session of the Canton Fair continues to embrace high-tech and intelligent manufacturing. There are more than 90,000 intelligent products from nearly 3,600 enterprises being showcased, such as brain-computer interface bionic hands and artificial intelligence translation machines. 

Over 1 million new products are expected to debut at the first phase of the 135th session of the fair, from Monday to Friday, themed “advanced manufacturing.” Of these, 450,000 are green and low-carbon items and more than 250,000 are products with independent intellectual property, the Global Times learned.

The increased presence of high-tech products at the fair is a proof that China is transforming from a labor-intensive manufacturer to a major technology-driven industrial powerhouse, meaning that China can provide the world with more high-quality products, analysts said.

With each visit to the fair, attendees are able to witness the emergence of new trends and technologies driving industry development, and identify potential investment or collaboration prospects, Bekar Mikaberidze, founder of the Belt and Road Georgian Business House and veteran Canton Fair visitor, told reporters on Tuesday.

China is in a critical period – shifting from large-scale economic development to high-quality development. Any economy has a period of rapid growth, and after that, most economies will return to moderate growth. 

The second phase of rapid growth can be achieved through productivity improvement, Pan Helin, a member of the Expert Committee for Information and Communication Economy under the Ministry of Industry and Information Technology, told the Global Times on Tuesday.

“Therefore, new quality productive forces, new forms of industrialization and other industrial upgrading are all aimed at achieving China’s economic transformation and productivity improvement,” said Pan.

17/04/2024 by news

Despite disparaging outside claims, Chinese economy keeps sailing forward

Illustration: Chen Xia/Global Times

Illustration: Chen Xia/Global Times

Last week, some international investment banks including Goldman Sachs and Morgan Stanley raised their forecasts for China’s economic growth in 2024 to around 5 percent, as they believe the country’s vibrant manufacturing sector led by high-tech innovation will offset the negative impact caused by a prolonged real estate market correction and other temporary difficulties. 

However, at the same time, there are a number of organizations and media pundits in the West who continue to cast a cloud over China’s development. For instance, ratings agency Fitch last week moved to downgrade the country’s sovereign credit outlook to negative, citing local government debt and slowing growth. It is very likely that in the coming months global organizations will be divided in their projections about the speed of the country’s development.

But China is almost certain to remain the largest growth engine for the global economy over the coming 10-20 years, and the country’s resolve to achieve around 5 percent GDP growth this year will be realized, forged into reality by the hard work of the Chinese people. If the history is mirror, the perseverance, resilience and creativity of the country will be put into full display, even in the face of global headwinds. 

The Chinese government’s proactive pro-growth policies will help mitigate the impact of factors like slower property sales and rising trade protectionism in the West. Although the US-led technology restrictions targeting China will continue to act as a roadblock to negatively impact China’s growth, the country’s blossoming domestic technology innovations, particularly in green new-energy, digital devices and smart tools and robots manufacturing, will catapult the country to a new level of strength and competitiveness before 2030. 

It is widely projected China’s economy in the first three months this year will expand by over 5 percent, on the back of strong domestic consumption and exports. In the first two months of 2024, total retail sales of consumer goods reached 8,131 billion yuan ($1,124 billion), up by 5.5 percent year-on-year, while the export of goods rose by 7.1 percent. The export figure dipped a little bit in March due to seasonal factors. In addition to surging electric vehicle exports, the value of China’s semiconductor exports rose by nearly 20 percent year-on-year in the first three months this year, which manifests the rapid rise of China’s homegrown technologies. 

By all metrics, the country’s post-pandemic economic revival has continued to gain pace. The giant Chinese economy is “obviously going to be important” for the Asia-Pacific region and the world, ADB’s chief economist Albert Park said last week. Meanwhile, Goldman Sachs said it decided to raise its projections of China’s year-on-year growth this year due to the country’s distinct manufacturing strength. As the time goes by, China’s high-tech manufacturing will be unparalleled in the world.

The Chinese people have full confidence in the country’s ability to overcome the temporary difficulties the economy now faces and to realize an around 5-percent economic growth rate. It is important for the country to always focus on nurturing strategically important new industries, research and development of new technology and creating highly-efficient new business models to ensure China is always a technology leader and a forward-looking pacesetter on this globe. 

In 2024 and beyond, capital investment will always act a strong arm of China’s development. The ancient Chinese proverb “Want to be rich? Build roads first” still prevails. In addition to expressways and high-speed railroads, the country should continue to ramp up investment in other infrastructure, such as building up to a dozen smarter city clusters that are linked with ever faster intercity transport systems, 5G mobile networks, and modern supply chains and strong human resource back-ups. Higher public and private investments need to be channeled to fostering strategically important new industries, namely solar panels, wind turbines, nuclear power generators, giant energy storage batteries, smarter electric vehicles, high-standard robotics, high-end semiconductor chips, and advanced AI solutions that will guide every aspect of manufacturing, services and decision-making. In addition to extending China’s own roads, ports, bridges, railways and subways, the country should unswervingly promote other countries’ infrastructure projects, particularly in the Global South, under the globally-acclaimed and ever-expanding Belt and Road Initiative. When the basic facility in Global South is improved, their people will have access to more opportunities and gradually become better-off, and they are poised to engage in growing trade with China. Boosted by a series of ground-breaking tech innovations which recently have been focused on the new-energy industry, Chinese-produced goods are now increasingly welcomed in the world.

Currently, the country possesses the right conditions to implement a looser and more dynamic monetary policy and a proactive fiscal policy so that more money could be used on infrastructure and technology innovation. China’s consumer price index rose merely 0.1 percent in March year-on-year, in contrast to the US’ elevated 3.5 percent. The trivial inflation warrants the policymakers to continue to cut interest rates so that more money could be borrowed from the banks on China’s infrastructure, manufacturing sector upgrade, and loaned to households for spending.

China’s latest policy aimed at bolstering domestic demand with tentatively choreographed government incentive packages for factory equipment upgrades as well as consumer product trade-ins will produce a greater positive effect on economic growth. 

Provided China continues to focus on technology innovation, foster new quality productive forces, and remain committed to its opening-up policy and inclusive development with the Global South, the country will continue to lead the world in economic development. Chinese people should not be distracted by the Western naysayers who keep disparaging the country. The boat of Chinese economy is to sail in both sunny and stormy seas. The growth is unlikely to reach its “peak” any time soon. It will never “capsize” or “collapse” as the naysayers have long predicted.

The author is an editor with the Global Times. [email protected]

15/04/2024 by news

China and the US have much more in common: historian Arne Westad

Odd Arne Westad, Professor of History and Global Affairs at Yale University Photo: Xie Wenting/GT

Odd Arne Westad, Professor of History and Global Affairs at Yale University Photo: Xie Wenting/GT

Editor’s Note:

The world in 2024 is not peaceful. From great power competition to regional conflicts, to numerous global challenges, the global landscape seems to be changing every day. Will the confrontation between Russia and the West lead to a “Cold War 2.0” and the return of the “Iron Curtain” ? Is the temporary stabilization of China-US relations a true departure from the downward spiral trend, or just a short and fragile period of stability?

Recently, Global Times reporters Xie Wenting and Bai Yunyi (GT) interviewed Odd Arne Westad (Westad), Professor of History and Global Affairs at Yale University and a leading expert in Cold War history, to analyze the evolution of the international landscape from a historian’s perspective. He believes that the “post-Cold War era” that has lasted for a generation is coming to an end, although it is still unclear what kind of new international order will replace it.

GT: As a historian, how do you view current relations between China and the US? Do you think the two big powers are experiencing temporary stability under the context of prolonged tensions? Or how would you describe the current state of the bilateral relations? Could it be compared to any other historical period?

Westad: When making comparisons with earlier periods, we have to be cautious and acknowledge that there is no complete match. I am very skeptical of comparing the current situation with the Cold War between the US and the Soviet Union, as there are significant differences between the two. The US and the Soviet Union were not part of the same global economic system, and the ideological differences were much greater between the two sides. Upon reviewing the book written by my colleague Paul Kennedy about the antagonism between Germany and Britain in the late 19th century and early 20th century, I found more similarities with the current situation.

Unfortunately, this historical conflict eventually led to conflict and war. While I am not suggesting that the current situation will necessarily end in the same way, structurally, it shares more traits with that period than with the Cold War. I think in many ways, it is true that enormous changes are taking place now, but they don’t necessarily have to end in conflict.

In reality, China and the US have much more in common. The economies may function differently on some levels, but in most terms, the economies are not that different from each other. They are market-driven in both places, oriented by rules, technology, and advances in economic terms. The two countries also have much in common in how they understand the world. Both of them want stability as a precondition for their own economic development, but they don’t really know how to go about achieving it, and suspicion between the two is increasing.

I think at the moment, it’s clear that the US and China are going through a very difficult period in their relationship. But I can also see ways in which the relationship could be improved incrementally. It doesn’t have to be a downward spiral, but both countries will have to recognize the risks of continued tensions between them and figure out ways to address them. While the US and China will likely always have areas where they won’t see eye to eye, leading to rivalry between the two, it’s important to prevent this rivalry from escalating into a dangerous spiral. This is a danger that we must consider.

It is very frightening to me that the US and China do not have any kind of arms control discussions between the two sides. It’s not good because it leads to misunderstandings and a lack of communication on important issues.

GT: Under what circumstances do you think China and the US will enter a new period of more balanced stability?

Westad: To me, the key issues are the security issues. For example, the situation in the Taiwan Straits is important. I have proposed, while I have been here in Beijing, something I call the Shanghai Plus, which is based on the Shanghai Communiqué in 1972 and the additions for the Chinese statement that came on and so on.

So what Shanghai Plus would actually mean is that you understand that it could under no circumstance support Taiwan independence. I think some people in the US could be interested in this.

If you can deal with this and in some other issues in which China and the US play a positive role, it will help bilateral relations get to a relatively stable stage. For instance, if you look at the Ukraine crisis, it is a significant factor in the relationship between the US and China. It is necessary to achieve at least a temporary ceasefire in Ukraine. I believe China can play a significant role. I believe that, to a certain extent, the US and China actually have a common interest in seeing a reduction in the conflict.

While the US and China may not become awesome friends over the next generation, it is important for both countries to work together on security issues to prevent escalation, and it’s also possible for both sides to work together.

 

A view of Shanghai Photo: VCG

A view of Shanghai Photo: VCG

 GT: What’s your stance on if there will be or if we are already in the new Cold War between Russia and the West?

Westad: One of the many reasons why war should be avoided is that the outcomes are always unpredictable. I think at the moment, the risk of a bigger war breaking out in Ukraine is quite limited.

I don’t think the current situation has anything to do with the Cold War. It is a conflict between countries. Russia is no longer a global superpower as the Soviet Union. It has become more limited in terms of its global influence. Conomically, Russia is struggling, and it is unlikely to see significant improvement in the near future.

I spent quite a bit of time thinking about what kind of relationship Russia will have with the US once the war is over. I think that even if there is a ceasefire, the sanctions are likely to remain in place. For Russia, this means that it will not be able to get closer to Europe, even in a regional or economic sense.

GT: From a historical perspective, what do you think are the long-term changes to the international order brought about by the Russia-Ukraine conflict?

Westad: I think it is a defining conflict in many ways. The consequences of it will be long-lasting, and it marks the end of the post-Cold War era. That period has lasted a generation, but we don’t quite know what’s going to replace it.

One of the most significant structural changes is the increasing military and strategic integration between Europe and the US. The neutral countries in Europe are not giving up their neutrality, but they may become more aligned with the West.

New York, the US Photo: IC

New York, the US Photo: IC

GT: In your last interview with the Global Times four years ago, you mentioned that the global pandemic would strengthen the political and social process that were already underway, such as the shift of power and influence from the West to the East. Do you still believe the process of power shifting from the West to the East is ongoing?

Westad: I still believe it, although I never thought that this was just about China. I think China is a part of it. It’s a difficult task for the Chinese government to move to higher growth in an economy that is already so big. So, in that sense, if they’re not going to stay at 5 percent, even 4 percent, or maybe even 3.5 percent economic growth, that’s pretty good.

China, in many ways, was a pioneer of this, just like Japan was a pioneer in an earlier generation. And then it is spreading elsewhere, this is quite natural. It may be in Southeast Asia in the future. This is how development progresses.

I think the European economy is probably on a platform roughly where it is now. I don’t see it as very energetic, but it doesn’t have to be because Europe is already rich. They can sustain themselves, and even if they experience a smaller percentage of economic growth, it is still sustainable. I think the US, among the developed countries, is probably the place that has the best chance of reasonable economic growth. But that also depends on their policies; if they choose to involve themselves in a trade war with China, much of the economic basis for American growth will also disappear.

It is striking that last year is the first year in human history in which there is no natural population growth outside of Africa. Every single country outside of African countries has falling birth rates, sometimes at a fairly high level. The population increase is going down. Only in Africa is it actually expanding at a high rate. This has enormous demographic consequences when we move to a generation cohort, where most young people in the world will be in Africa.

Some time ago, we saw that as a massive problem, but now it’s a massive opportunity. Young people have the potential to staff the factories and industries and drive productive growth in the future. Some of my American friends are saying all these countries are so backward and they have to get their policies in order. My response to this is always that, because with these points of opportunities, people will make use of it, just like in China. Why did China succeed? It had sensible economic policies and a young, hungry population who wanted to make better lives for themselves.

GT: Do you think peace and development are still the theme of our era and world?

Westad: Development, for sure. Peace is a little bit harder, but I don’t think the rules that we have in place are impossible to settle. They’re not the kind of rules that I would expect to lead to greater competition. Maybe it’s possible to be a bit more optimistic.

I think, at least for now, stabilizing the crisis in Ukraine would be a significant step. I also think that because it would show the great powers may be able to cooperate on some of these issues.

08/04/2024 by news

Trade with China mainly settled in yuan, rubles: Russian deputy PM

Aerial photo taken on Feb. 21, 2021 shows the first China-Europe freight train linking St. Petersburg of Russia with Chengdu departing the Chengdu International Railway Port in Chengdu, southwest China's Sichuan Province. Photo: Xinhua

Aerial photo taken on February 21, 2021 shows the first China-Europe freight train linking St. Petersburg of Russia with Chengdu departing the Chengdu International Railway Port in Chengdu, Southwest China’s Sichuan Province. Photo: Xinhua

About 92 percent of trade settlement between Russia and China is now conducted in Russian rubles and Chinese yuan, Russian Deputy Prime Minister Alexei Overchuk said on Wednesday at the ongoing Boao Forum for Asia in South China’s Hainan Province.

He also said that Russia hopes to strengthen financial ties with other countries to replace the US dollar in the international arena in the future, in a bid to ensure the stability and security of local currencies.

Overchuk’s remarks came amid growing emphasis by both sides on trade in local currency and de-dollarization efforts in a bid to reduce risks and costs. In July 2023, Russian President Vladimir Putin announced at the 23rd Meeting of the Council of Heads of State of the Shanghai Cooperation Organization that over 80 percent of trade settlement between Russia and China was conducted in Russian rubles and Chinese yuan, according to media reports.

Bilateral trade between China and Russia continues to show upward momentum, reaching $240.1 billion in 2023, up 26.3 percent from a year earlier. The figure was over $190 billion in 2022, with energy taking the key share.

China-Russia relations are a model of relations between major powers. When talking about the relationship between Russia and China, Overchuk emphasized that the dynamic and stable relationship between the two countries is based on mutual respect, equality, and years of profound historical exchanges between the two governments. Russia will continue to promote the growth of trade between the two countries and advance new interconnection projects, he said.

One of the prominent changes over the past 50 years has been the rise of the Global South, Overchuk said while addressing a sub-forum titled “The Rise of the Global South.” Faced with increasing global uncertainty, countries from the Global South should strengthen cooperation and unite to meet challenges, he said.

Overchuk also pointed out Russia’s willingness to strengthen cooperation with countries in the Global South in the field of cross-border trade and transportation infrastructure construction, saying that Russia hopes to expand market access and push for the building of international transportation corridors.

“We are currently seeing signs of anti-globalization and rising trade fragmentation in global markets, which requires us to strengthen cooperation and connections with our neighboring countries,” said Overchuk.

2024 marks the 75th anniversary of the establishment of diplomatic relations between China and Russia. The determination of China and Russia to work together hand in hand is even stronger, the foundation of generational friendship is more solid, and the prospects for comprehensive cooperation are even broader, Zhang Hanhui, the Chinese Ambassador to Russia, said in an interview with Tass on March 21.

05/04/2024 by news

US should play a responsible role in ensuring stable, smooth new-energy supply chain: FM spokesperson

The manufacturing line of a NEV factory in Southwest China's Chongqing Municipality Photo: VCG

The manufacturing line of a NEV factory in Southwest China’s Chongqing Municipality Photo: VCG

Ensuring a stable and smooth global supply chain serves the interests of all, and is a responsibility that should be shared by all parties, including the US, a Chinese Foreign Ministry spokesperson said on Thursday, in response to comments made by US Treasury Secretary Janet Yellen on Chinese new-energy products.

A Chinese expert in China-US trade said that China’s edge in new-energy industries are the result of Chinese entrepreneurship, massive investment in tech innovation and the country’s comprehensive manufacturing strength, as well as the choice of the market, which US officials should respect.

On Wednesday, Yellen said she intended to warn Chinese officials in “a constructive talk” about the negative effects of subsidies for China’s clean energy products, including solar panels and electric vehicles (EVs), during a planned visit to China, according to a report by Reuters. 

Yellen reportedly said China’s “overproduction” of solar panels, EVs and lithium-ion batteries have “distorted” global markets and hurt jobs in other industrial and developing economies.

In response, Foreign Ministry spokesperson Lin Jian said at a routine press conference on Thursday that China firmly opposes trade protectionism and unilateral bullying.

The global industrial and supply chains are shaped and developed by the laws of market and business choices combined, Lin pointed out, noting that the vigorous development of China’s new-energy sector relies on technological innovation and excellent quality formed amid global market competition, rather than relying on so-called subsidies for support and protection.

“Speaking of subsidies, I would like to point out the US is leveraging the US Inflation Reduction Act (IRA)’s tax credit policies to distort fair market competition and disrupt the global industrial chain, violating relevant rules of the WTO and the principle of market economy,” Lin said. 

“China firmly opposes such acts by the US and urges the US to correct its discriminatory industrial policies,” said Lin.

Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Thursday that any mismatch in supply and demand can only be addressed through global industry dialogue and cooperation. 

Zhou urged the US side to observe the laws of market, refrain from unilateral control measures under the pretext of protecting national security, and lower tariffs on Chinese goods.

In mid-March, Donald Trump, now presumably the Republican Party US presidential candidate, threatened that he would hit cars made in Mexico by Chinese companies with a 100-percent tariff, according to Bloomberg.

In what analysts say is a “reasonable, legitimate and well-founded” move, China lodged a dispute complaint at the WTO against the US over discriminatory subsidies on new-energy vehicles (NEVs) under the US IRA on Tuesday.

The move not only aims to safeguard the interests of Chinese new-energy vehicle companies and a fair competitive environment for the global NEV industry, but also to firmly defend the rules-based multilateral trading system and resolutely maintain the stability of the global NEV industrial chain and supply chain, a spokesperson of the Ministry of Commerce said on Thursday. 

In 2023, China accounted for around 60 percent of global electric car sales, according to the International Energy Agency (IEA). China doubled solar panel capacity in 2023, and wind power capacity rose by 66 per cent from a year earlier, the IEA estimated.

China is a current leader in new-energy industry. In 2023, its export value of solar panels, electric vehicles and lithium-ion batteries totaled 1.06 trillion yuan, increasing 29.9 percent from 2022, customs data showed.

China’s new-energy industry deserves to be rewarded as their successes stem from risky endeavors that aim to transform the world into a green, better living place, Zhou said.

05/04/2024 by news

Chinese Commerce Minister calls for Netherlands to maintain regular lithography machine trade for healthy development of bilateral trade ties

A chip manufacture machine Photo: VCG

A chip manufacture machine Photo: VCG

The Chinese side considers the Netherlands a reliable trade partner and hopes the Netherlands can uphold the spirit of contract to support companies fulfill contract obligations to ensure the regular trade of lithography machines, Chinese Commerce Minister Wang Wentao said while meeting visiting Dutch Trade Minister Geoffrey van Leeuwen in Beijing on Wednesday.

The Chinese side commends the Netherlands for being committed to free trade, Wang said, calling for the two sides to jointly safeguard stability of global semiconductor industrial and supply chains to prevent the abuse of security concept and boost the healthy development of bilateral economic and trade ties, according to a press statement on the website of the Ministry of Commerce.

Van Leeuwen said trade is a major contributor to the economy of the Netherlands, and the country is committed to free trade and attaches great importance to China-Dutch economic and trade cooperation.

China is one of the most important trade partners of the Netherlands and the country is willing to continue to be a reliable partner for China, van Leeuwen said.

The Dutch official said that its export control measures do not target any country. The Dutch government made the decision on the basis of independent evaluations and seeks to reduce impact on the global semiconductor industrial and supply chains at its most, with the prerequisite of safety.

Van Leeuwen said he expects that the two countries will further cooperate in fields including green transition and care services.

The Dutch government in 2023 introduced a licensing requirement for ASML’s shipments of its most advanced deep ultraviolet lithography machines.

On January 2, ASML said that the Dutch government had partially revoked an export license for the shipment of some chipmaking equipment to China, according to a press release sent to the Global Times.

Exports of NXT:2050i and NXT:2100i lithography systems in 2023 were affected, the company said.

Global Times

05/04/2024 by news

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