I hope those of you who went away for the May 1 Holiday had a nice vacation.
The newsletter is off again May 7 so I can attend Day 1 of the always excellent US Chamber of Commerce China conference here in DC. I hope to see lots of subscribers there Tuesday, and we will be back to the normal schedule Wednesday.
Summary of today’s top items:
Xi in France - Xi is in France for the first and likely most difficult leg of his Europe trip. Xi will next visit friendlier Serbia and Hungary. In his signed article for French media and his official comments from his bilateral with French Macron and trilateral with Macron and EC President von der Leyen on the first day Xi hit the expected points about the need for “strategic autonomy” and the “right perception of China” while pushing back on claims of overcapacity (the so-called “problem of China’s overcapacity” does not exist), and trying to placate France and the EU over Ukraine without actually promising anything new. The next interesting moment in this trip may come May 7 in Belgrade, the 25th anniversary of the NATO bombing of the PRC embassy there.
Official pushback on the overcapacity claims - 钟才文 Zhong Caiwen, a pen name used for commentaries from the Central Finance and Economic Affairs Commission 中央财经委员会 I believe, has a piece on page 2 of the Monday People's Daily titled "The global capacity pattern is the result of market competition and international division of labor" that refutes claims that the PRC has an overcapacity issue. The December Central Economic Work Conference readout mentioned “overcapacity in some industries”, but since foreign, and especially US, allegations of overcapacity have intensified it seems that officials can no longer admit there is such an issue. A commentary in the Monday Economic Daily links the allegations of overcapacity to US efforts to talk up the "China threat narrative". The commentator writes “from the so-called "China threat theory" to the "China shock theory," and then to the "overcapacity theory," continuously constructing variations of the "China threat narrative" essentially provides excuses for some in the United States to undermine the principles of fair market competition and defend protectionist economic policies.” It does not sound like we are going to see any deals any time soon to assuage concerns about overcapacity…
"Chinese Modernization: The Way Forward" - The Institute of Party History and Literature of the Central Committee of the Communist Party of China (CPC) and Xinhua Institute issued a long report titled “Chinese Modernization: The Way Forward 中国式现代化发展之路“. Given that the July Third Plenum will have as a key theme “advancing Chinese-style modernization” and that the very important Institute of Party History and Literature co-authored this document, we may learn a lot about what will come out of the Third Plenum from it. From the introduction: “Based on an in-depth analysis, this report asserts that Chinese modernization has given rise to a new form of human advancement. Chinese modernization is different from Western modernization in the following ways: it puts people, not capital, first; it debunks the idea of “the end of history” and pursues the constant improvement and innovation of systems and institutions; it pursues a model of comprehensive and coordinated development, not one-dimensionality and alienation; it ensures that the people run their country and that democracy is not practiced for the few; it strives to both preserve cultural heritage and enrich it; and it rejects unilateralism in global governance and advances the building of a human community with a shared future.”
Was there a PRC-Philippines “gentleman’s agreement” over Second Thomas Shoal? - The PRC is adamant that there was, during the Duterte Administration as well as with the current Marcos Administration. The Philippines side vehemently denies that there was an agreement. It would be quite a risky gambit for the PRC to just make this up out of whole cloth, and I would not be surprised if they release more of what they say is evidence there was an agreement. I doubt any new disclosures will change the Philippines approach, and I still think of all the potential flash points between the US and China the Second Thomas Shoal Sierra Madre resupply/reinforcement one may have the highest risk of sparking a conflict. And if it does, it may not just involve the US/Philippines and China, it may also bring in the “squad”, as the Pentagon apparently now calls a US, Japan, Australia and Philippines grouping.
Real estate sales still not improving - Reuters reports that “home sales fell in 19 of 22 surveyed cities during the five-day May Day compared to the same period of 2023”. The Politburo readout last week “called for coordinated research on policies and measures to digest existing housing stock and optimize new housing, to urgently establish a new model for real estate development and promote high-quality development of the real estate sector”. Some cities may feel acute pressure to “digest exist housing stock” as last week the Ministry of Natural Resources issued a notice suspending new land sales in cities where the existing housing supply is 36 months or greater.
Thanks for reading.
1. Xi in France
President Xi stressed that China-EU relations enjoy strong endogenous driving force and bright prospects of development. This relationship does not target any third party, nor should it be dependent on or dictated by any third party. It is hoped that the EU institutions will develop the right perception of China and adopt a positive China policy..
President Xi pointed out that China’s new energy industry has made real progress in open competition and represents advanced production capacity. It not only increases global supply and alleviates the pressure of global inflation, but also contributes significantly to global climate response and green transition. The so-called “problem of China’s overcapacity” does not exist either from the perspective of comparative advantage or in light of global demand. China-EU cooperation is in essence complementary and mutually beneficial. The two sides have extensive common interests and broad space for cooperation in green and digital transition. It is necessary that they properly address economic and trade frictions through dialogue and consultation, and accommodate each other’s legitimate concerns.
President Macron noted that this year marks the 60th anniversary of diplomatic relations between France and China. Cooperation between the two sides has yielded many important outcomes. President Macron expressed his delight in holding the France-China-EU trilateral leaders’ meeting during President Xi’s third state visit to France. This is both a continuation of the previous France-China-EU trilateral meetings and also what is urgently needed to address the various international challenges. The world today faces major challenges, and the international situation is at a critical inflection point. Now more than ever, France and the EU need to strengthen cooperation with China, as this bears on the future of Europe. France hopes to enhance dialogue and cooperation with China, and strengthen mutual trust and friendship between France and China and also between the EU and China. The EU refuses the logic of decoupling. It welcomes investment and cooperation by Chinese companies in Europe. The EU hopes to step up cooperation with China and jointly safeguard the security and stability of value chains and supply chains in Europe. France wishes to work with China closely to address global challenges such as climate change and marine biodiversity.
European Commission - Press statement by the President following the trilateral
Together with President Macron, the first topic where we exchanged views on was the geopolitical situation. We especially discussed Ukraine and the conflicts in the Middle East. We agree that Europe and China have a shared interest in peace and security. We count on China to use all its influence on Russia to end Russia's war of aggression against Ukraine. President Xi has played an important role in de-escalating Russia's irresponsible nuclear threats, and I am confident that President Xi will continue to do so against the backdrop of the ongoing nuclear threats by Russia. We have also discussed China's commitment not to provide any lethal equipment to Russia. More effort is needed to curtail delivery of dual-use goods to Russia that find their way to the battlefield. And given the existential nature of the threats stemming from this war for both Ukraine and Europe, this does affect the EU-China relations...
subsidised products – such as the electric vehicles or, for example, steel – are flooding the European market. At the same time, China continues to massively support its manufacturing sector. Combined with a domestic demand that is not increasing, the world cannot absorb China's surplus production. Therefore, I have encouraged the Chinese government to address these structural overcapacities. At the same time, we will closely coordinate with G7 countries and emerging economies that are also increasingly affected by China's market distortions...
The EU-China relation is a complex relationship. We approach it clear-eyed, constructively and responsibly. Because a China that plays fair is good for all of us. At the same time, Europe will not waver from making tough decisions needed to protect its economy and its security.
Surprised the PRC side was OK with these chairs:
Full text of Xi's signed article in French media-Xinhua
China understands the repercussions of the Ukraine crisis on the people of Europe. China did not start the Ukraine crisis, nor is it a party to or a participant in it. Nonetheless, China has been playing a constructive role in striving for peaceful settlement of the crisis. I have made many appeals, among others, observing the purposes and principles of the UN Charter, respecting sovereignty and territorial integrity of all countries, and addressing the legitimate security concerns of all sides. I have stressed that nuclear weapons must not be used, and a nuclear war must not be fought. China has delivered to Ukraine many shipments of humanitarian aids, and sent its special representative many times to mediate among the countries concerned. The longer the Ukraine crisis drags on, the greater harm it will do to Europe and the world. China hopes that peace and stability will return to Europe at an early date. We stand ready to work with France and the whole international community to find a reasonable way out of the crisis...
Confucius observed that "a man of true moral integrity is one who is both friendly but independent, and who does not compromise his principles, and who is independent without any bias or taking sides. How unflinchingly firm he is in his strength!" French writer Romain Rolland said that "it is so much easier to allow oneself to be guided than it is to think for oneself. This abdication is the kernel of the mischief." Both China and France value independence as two major countries. Our interactions in the long course of history have released tremendous energy swaying the trajectory of the world. Now we are standing at another historical starting point. Let us join hands together on this new journey toward greater progress in China-France relations to the benefit of our two countries and the world!
Macron and Xi discuss Russia, Ukraine and trade – DW
Speaking at a press conference after the talks, Macron said he welcomed Chinese "commitments to refrain from selling any arms" or providing "any aide" to Russia in support of Moscow's war in Ukraine.
He said France and Europe "respect the ancient links which unite China and Russia" and therefore welcomed Beijing's promise "to strictly control the exportation of double-usage goods" which could be used militarily.
He said he was keen to "maintain a close dialogue" with Beijing and thanked Xi for coming to France to "coordinate" ahead of a visit by [Russian] President [Vladimir] Putin to China.
Xi aims to open brighter future of China-France ties via visit-Xinhua
Xi Jinping said here on Sunday that he hopes China and France will light up their way forward with the torch of history, open a brighter future of China-France relations and make new contributions to world peace, stability and development...
As important representatives of Eastern and Western civilizations, China and France have a long history of mutual appreciation and admiration, Xi said.
French Enlightenment thinkers turned to study Chinese culture centuries ago, and great French thinkers and writers such as Voltaire, Diderot, Hugo and Balzac have been household names in China, he added.
He also noted that 60 years ago, the two countries broke through Cold War blocs and established diplomatic relations at the ambassadorial level.
In his statement at the press conference with Macron Xi listed four items of agreement -习近平同法国总统马克龙共见记者时的讲话(全文)-新华网
We have decided to undertake the following work:
First, consolidate the strategic stability of bilateral relations. I welcome President Macron's visit to China again. Both China and France reaffirm mutual respect for each other's core interests and will make good use of multi-level and multi-dimensional communication channels to timely communicate and coordinate policy positions.
Second, tap into the vast potential of mutually beneficial cooperation. Both sides will promote the upward balance of bilateral trade, expand cooperation in agriculture, finance, and other fields, advance joint research and innovation in aviation, aerospace, civil nuclear energy, and strengthen strategic alignment in development. We will also expand cooperation in emerging fields such as green energy, smart manufacturing, biomedicine, artificial intelligence, and third-party markets. China has already achieved comprehensive opening-up in the manufacturing sector and will accelerate the opening-up of markets in telecommunications, healthcare, and other services. We encourage expanding two-way investment and are committed to providing a favorable business environment for companies from both countries. During this visit, both sides have signed 18 interdepartmental cooperation agreements covering areas such as aviation, agriculture, culture, green development, and cooperation with small and medium-sized enterprises.
Third, accelerate "two-way visits" in cultural exchanges. Taking the opportunity of the China-France Year of Culture and Tourism, we will promote cooperation in education, sports, film and television, youth, and local areas. China supports France in hosting the Paris Olympics and welcomes more French friends to China. We have decided to extend the visa-free policy for short-term visits to China by citizens of France and 12 other countries until the end of 2025, and support the opening of direct flights from Shanghai to Marseille. The China Fujian Shipbuilding School built with the participation of French personnel 150 years ago and the work-study movement to France in the early 20th century are both excellent stories in the history of educational exchanges between the two countries. We welcome France's role as the main guest country at this year's China International Education Conference and aim to double the number of French students studying in China to over 10,000 and double the scale of youth exchanges between China and Europe in the next three years.
Fourth, gather greater consensus for global cooperation. Both sides will deepen cooperation in areas such as climate change and biodiversity, and strengthen dialogue in global governance of artificial intelligence and reform of the international financial system. China supports France in hosting the United Nations Ocean Conference in 2025 and encourages the pairing of national parks and nature reserves between the two countries.
Xi is probing for cracks in the EU and Nato - Gideon Rachman - Financial Times
Xi’s decision to visit Serbia and Hungary will make it difficult to convince most other Europeans that he comes in friendship. Serbia sits outside both the EU and Nato; while Hungary has undermined both organisations from within. Both countries are friendly to Russia. The fact that Xi will return home to receive Vladimir Putin in Beijing, shortly afterwards, will deepen European apprehension about China’s real intentions.
Charles de Gaulle once said at a press conference after the establishment of diplomatic relations between China and France, "France simply recognizes the world as it is." He firmly believed in the long history of Chinese civilization and emphasized that global development cannot be without China. Today, as China deeply integrates into globalization, just as de Gaulle foresaw, it has a strong willingness and continues to contribute to global development. China's expansion of high-level openness and deepening cooperation with other countries, including France, is not a forced choice, but a conclusion drawn from our own development experience and a natural result of our development needs. China offers opportunities rather than risks, and seeks cooperation rather than confrontation. As long as one can correctly grasp the main thread of comprehensively understanding China's development, all problems will be technical and temporary.
Xi, Macron hold talks, calling for upholding independence - Global Times
Sun Keqin, a research fellow at the China Institutes of Contemporary International Relations, told the Global Times that the US has very deep involvement in European affairs.
"US interference remains, but Europe has kept a certain degree of autonomy and is able to cooperate with China, especially the French leadership which has always had a strong sense of strategic autonomy in a pragmatic manner," said Sun.
Through the visit of the Chinese top leader, Europeans will also have the opportunity to think about how to handle its relations with China, whether to follow the US to engage in confrontation and lose their own interests, or to jointly develop mutual benefits and get win-win results, the expert said.
Xi addresses closing ceremony of China-France Business Council meeting - CGTN
China has decided to extend the visa-free policy for short-term visits to China by citizens of 12 countries, including France, until the end of 2025, Xi said.
China will expand the opening-up of telecommunications, medical and other service industries, and further open up its market to create more opportunities for companies from all over the world, including France and Europe, Xi added
China's Xi backs Macron call for global Olympic truce | Reuters
"The world today is far from being calm. As member of the United Nations Security Council and as a responsible country, China urges with France for a truce in the world during the Paris Olympic games," Xi said, speaking through an interpreter alongside Macron during a joint statement.
Chinese EV maker BYD welcome to open factory in France, French finance minister says | Reuters
"France welcomes all industrial projects. BYD and the Chinese auto industry are very welcome in France," Le Maire said at a meeting with car sector executives.
Bonhomie and hardball: Xi Jinping visits Europe to avert trade war - Financial Times
Xi intended to play hardball, Chinese officials and analysts said. Behind the expected displays of public bonhomie and promises of Chinese investment, he would warn European leaders that duties on Chinese exports would elicit an uncompromising response, they added.
“China could impose restrictions on the export of materials needed to make microchips and on French exports to China and several other items,” said one Chinese analyst who asked not to be named.
Xi Jinping and Emmanuel Macron to hold talks with trade tensions on agenda - Financial Times
Chinese commentators have highlighted remarks that Macron made last year after visiting China that Europe should forge its own strategic independence and become a “third pole” in geopolitics, autonomous of Beijing and Washington.
Nationalist Chinese commentator Hu Xijin wrote on microblogging platform Weibo that the core of Gaullism, which is “ingrained in French people’s bones”, is “strategic autonomy”, adding that Macron had warned Europe against being “America’s followers”.
Putin orders nuclear drills with troops near Ukraine - Insider Paper
President Vladimir Putin has ordered the Russian military to hold nuclear weapon drills involving the navy and troops based near Ukraine, the defence ministry said Monday.
“During the exercise, a set of measures will be taken to practise the preparation and use of non-strategic nuclear weapons,” the defence ministry said.
Book of Xi's discourses on Chinese modernization published in French-Xinhua
Compiled by the Institute of Party History and Literature of the CPC Central Committee, the book collects a series of important discourses by Xi between November 2012 and October 2023 regarding Chinese modernization.
Xi Jinping's Climate Change Envoy Says Energy Transition Needs China - Bloomberg
“We need to maintain low costs, otherwise nobody is going to be able to afford the energy transition,” Liu said in an interview with Bloomberg Television. “What I’m worried about is if the US and European Union continue to insist on that approach, it would result in a delay in the substitution of fossil fuels by renewables globally.”
2. Official pushback on the overcapacity claims
Zhong Caiwen 钟才文 - 全球产能格局是市场竞争和国际分工的结果
Excerpts:
The global capacity pattern is the result of the operation of the law of value. Under market economy conditions, the law of value fundamentally regulates the production and exchange of goods, as well as determining the distribution pattern of capacity. In market competition, capacity with higher production efficiency can obtain higher profits at lower prices, thereby eliminating capacity with lower production efficiency. In this process, the coexistence of efficient and inefficient capacity is not overcapacity but rather a necessary stage where the law of value operates. For example, as technology advances and the concept of green development becomes more prevalent, electric vehicles are gradually replacing fuel vehicles. According to the "Global Electric Vehicle Outlook 2024" report released by the International Energy Agency, global electric vehicle sales approached 14 million units in 2023, accounting for 18% of total sales. It is projected that by 2030, one-third of cars on China's roads will be electric vehicles, while the proportion in the United States and the European Union is expected to approach one-fifth. Data from the China Automobile Dealers Association's Automobile Market Research Branch shows that in the first half of April 2024, the retail penetration rate of new energy passenger vehicles in China reached 50.39%, surpassing fuel vehicles for the first time. Looking at the global trend of new energy vehicles, the gap between supply and demand for new energy vehicles is continuously expanding, indicating that efficient capacity is not surplus but insufficient. Therefore, which industries have overcapacity and which capacities are surplus should be judged by the market and measured globally. Excluding competition in the name of "overcapacity" does not comply with the fundamental principles and rules of the market economy, nor does it meet the requirements of the law of value. It will inevitably lead to monopoly, inefficiency, and stagnation, which are detrimental to the long-term development of any country...
全球产能格局是价值规律作用的结果。在市场经济条件下,价值规律从根本上调节着商品的生产和交换,也决定着产能的分布格局。在市场竞争中,生产效率更高的产能可以更低的价格来获取更高的利润,从而淘汰生产效率低的产能。在这个过程中,高效产能与低效产能的阶段性并存并不是产能过剩,反而是价值规律发挥作用必经的过程。比如,随着技术进步和绿色发展理念深入人心,新能源汽车开始逐步替代燃油车。国际能源署发布的《2024年全球电动汽车展望》报告显示,2023年全球电动汽车销量接近1400万辆,占总销量的18%,预计到2030年,中国道路上行驶的汽车有1/3是电动汽车,美国和欧盟这一比例有望接近1/5。中国汽车流通协会汽车市场研究分会的数据显示,2024年4月上半月,中国新能源乘用车零售渗透率为50.39%,首次超过燃油车。从全球新能源汽车发展态势看,全球新能源汽车供需缺口不断扩大,高效产能不是过剩而是不足。因此,什么产业存在产能过剩,哪些产能是过剩产能,应交给市场去判断,放在全球下来衡量。以“过剩”的名义排除竞争,不符合市场经济的基本精神和规则,不符合价值规律的要求,必定导致垄断、低效和停滞,不利于任何一个国家的长远发展。
As the world's largest manufacturing country and the largest exporter of goods, China has seen countless emerging industries and enterprises continually emerging, with one generation after another achieving innovation through technological advancement and market competition. This reflects the vitality and creativity of the Chinese economy, rather than any manifestation of excessive investment and overcapacity.
中国作为全球制造业规模最大的国家和最大商品出口国,无数新兴的产业和企业不断涌现,长江后浪推前浪,不断上演依靠科技创新推陈出新、奋勇争先的市场大戏,这是中国经济活力和创造力的反映,而不是什么过度投资和产能过剩的表现。
The adjustment of the globally market-driven capacity pattern will continue to move forward amidst challenges. In recent years, some countries, for political purposes, have implemented measures such as "decoupling" and "offshoring" in the economic field, leading to a large amount of redundant construction and global overcapacity. Such behavior, which goes against globalization, excludes competition, and violates the value laws of the market economy, has raised global production costs, reduced economic efficiency, and harmed the welfare of global consumers and the interests of related businesses. Only through free trade and full competition can the optimal solution for the global capacity pattern be formed. Many international companies have realized that the fiercely competitive and innovative Chinese market is like a "well-equipped gym." Faced with the continuous growth and development of China's manufacturing industry, the correct and positive attitude should be to compete openly and fairly with Chinese companies in an open market, seek cooperation opportunities, progress together, rather than hiding behind the walls of trade protectionism and nationalism, and shooting "overcapacity" arrows. Openness brings progress, while closure leads to backwardness. This is an important lesson drawn from China's history over the past two centuries and will be further tested in the history of the new century.
市场驱动的全球产能格局调整将在波折中不断向前。近年来,一些国家出于政治目的,在经济领域“脱钩断链”,实施“小院高墙”“友岸外包”“产能备份”等措施,造成大量重复建设和全球性产能过剩。这种逆全球化、排除竞争、违背市场经济价值规律的行为,推高了全球生产成本,降低了经济效率,损害的是全球消费者福祉和相关领域企业利益。只有自由贸易、充分竞争,才能形成全球产能格局的最优解。很多国际企业已经正确认识到,竞争激烈、创新活跃的中国市场是一个“设备齐全”的“健身房”。面对中国制造业的不断发展壮大,正确的、积极的态度应该是在开放公平的市场上与中国企业光明正大地竞争,并寻求合作机会,共同进步,而不是躲在贸易保护主义和民族主义的高墙后,射出“产能过剩”的冷箭。开放带来进步,封闭导致落后。这是中国从过去两个世纪历史中得出的重要经验,也将得到新世纪历史的进一步检验。
Zhong Caiwen back in January seemed more open to the idea of overcapacity in some sectors- 必须坚持深化供给侧结构性改革和着力扩大有效需求协同发力 - 求是网
Breaking through the bottlenecks and obstacles that hinder the integration of supply and demand is a key breakthrough in coordinating the expansion of domestic demand and optimizing supply. Currently, China's economy faces challenges such as insufficient effective demand, overcapacity in some industries, weak social expectations, and numerous hidden risks. Various issues are intertwined and compounded.
打通供需结合的断点堵点卡点是统筹推进扩大内需和优化供给的重要突破口。当前,我国经济面临有效需求不足、部分行业产能过剩、社会预期偏弱、风险隐患仍然较多等困难挑战,各类问题交织叠加
And in March too - 深入研判中国经济形势,经济日报连续刊发四篇钟才文署名专论_中国经济网——国家经济门户
At the Central Economic Work Conference in 2023, the Central Committee of the Party pointed out profoundly that in addition to confronting the instability and uncertainty factors caused by the severe and complex external situation, China's economic development also faces some difficulties and challenges internally. Mainly, there is insufficient effective demand, overcapacity in some industries, weak social expectations, and numerous hidden risks. There are bottlenecks in the domestic circulation.
在2023年中央经济工作会议上,党中央深刻地指出,我国经济发展除了要直面外部严峻复杂形势造成的不稳定不确定性因素之外,自身发展也面临一些困难和挑战,主要是有效需求不足、部分行业产能过剩、社会预期偏弱、风险隐患仍然较多,国内大循环存在堵点
经济日报评论员:驳“中国新能源产能过剩论”_ Economic Daily Commentator: Refuting the "Theory of China's Overcapacity in New Energy Production". Excerpt:
Faced with global climate change, an article on the website of The New York Times reports that "among all the efforts globally to slow down further warming of the climate, electric vehicle sales are the only category that aligns with achieving climate goals." It's not difficult to see that when discussing climate change, some people in the United States believe that there is still insufficient capacity in new energy production; however, when it comes to China's new energy industry, they accuse it of "overcapacity." Some in the United States demand that consumers switch to electric vehicles, yet they also try to prevent competitively priced Chinese electric vehicles from being supplied globally. Behind such self-contradiction, it is evidently not China's "overcapacity" but rather an "overabundance of anxiety" among some in the United States...
面对全球气候变暖,美国《纽约时报》网站报道称,“在全球努力延缓气候进一步变暖的所有变革中,电动车销售是符合实现气候目标的唯一类别”。不难看出,当谈论应对气候变化时,美国一些人认为新能源产能仍然不足;而谈到中国新能源产业时,又指责“产能过剩”。美国一些人一边要求消费者转向电动车,却又试图阻止中国价格更优的电动车向全球供应。如此自相矛盾的背后,显然不是中国“产能过剩”,而是美国一些人“焦虑过剩”。
From the so-called "China threat theory" to the "China shock theory," and then to the "overcapacity theory," continuously constructing variations of the "China threat narrative" essentially provides excuses for some in the United States to undermine the principles of fair market competition and defend protectionist economic policies. However, this performance is like speeding on the edge of a cliff; no matter how skilled the driving, it cannot avoid the risk of crashing.
从所谓“中国威胁论”,到“中国冲击论”,再到“产能过剩论”,不断构建“中国威胁叙事”的变体,实则为美国一些人破坏公平市场原则找借口,为保护主义经济政策寻辩护。但这一次的表演,如同在悬崖上高速飙车,再高超的车技也无法避免翻车的风险。
3. "Chinese Modernization: The Way Forward"
Xinhua Commentary: China's modernization contributes to building better future for humanity-Xinhua
"Chinese Modernization: The Way Forward" offers an authoritative interpretation of Chinese modernization and is key to understanding contemporary China's development experience.
Throughout history, Western modernization theories have been constructed based on Western experiences. The development of most developed Western countries has been a gradual process, progressing in the sequence of industrialization, urbanization, agricultural modernization, and digitalization.
In this context, China, as the largest developing country, grapples with a vast territory, a significant population and pronounced regional disparities. Its path to modernization requires resolving numerous intricate issues, some of which the West has never encountered.
China, in response, has charted a course of coordinated development, diverging from the Western modernization trajectory. In a remarkably short period, it has accomplished an industrialization process that took the developed Western countries several centuries, thereby forging a path of rapid economic development and enduring social stability.
The Chinese modernization has provided an alternative approach to development and allowed nationalities to accelerate growth while maintaining self-reliance and independence, shattering the delusion that modernization equals Westernization…The report, co-issued by the Institute of Party History and Literature of the Central Committee of the Communist Party of China (CPC) and Xinhua Institute, which is a high-end think tank of Xinhua News Agency, lists detailed characteristics of Chinese modernization.
Unlike Western modernization, the report noted, the Chinese version puts people, not capital, first; it debunks the rhetoric of "the end of history" and pursues the constant improvement and innovation of systems and institutions; it pursues a model of comprehensive and coordinated development; it ensures that the people run their country and that democracy is not practiced for the few; it strives to both preserve cultural heritage and enrich it; and it rejects unilateralism in global governance and advances the building of a human community with a shared future.
The document:
The full text in Chinese - 中国式现代化发展之路
4. Was there a PRC-Philippines “gentleman’s agreement” over Second Thomas Shoal?
The Chinese Embassy put five questions to the Philippines: Why the Marcos administration repeatedly denies having negotiated with China to reach understandings and arrangements on Ren'ai Jiao?
Why does the Philippine Department of National Defense refuse to engage in dialogue and negotiation with China to properly handle maritime disputes?
The "new model" has been proven to be effective in managing differences and avoiding conflicts, why has the current Philippine government unilaterally abandoned it after being put into practice only once?
Who made the decision to betray the "new model"?
Does managing differences and avoiding conflicts go against the interests of certain forces?
Remarks of the Spokesperson of the Chinese Embassy in the Philippines
China has always been committed to properly managing maritime differences through dialogue and consultation with the Philippines and has made relentless efforts in this regard. The “gentlemen's agreement” is a concrete outcome of such efforts. To follow up on the important consensus between the two heads-of-state to deescalate tension in the South China Sea, the Chinese side and the Philippine side through AFP WESCOM agreed on a “new model” for the management of the situation at Ren'ai Jiao early this year after multiple rounds of discussions. Either the “gentlemen’s agreement” or the “new model” is a confidence-building measure aimed at managing disputes, avoiding conflicts and maintaining peace, and has nothing to do with each other's sovereign positions. During the discussion the AFP WESCOM has made repeated confirmation that the “new model” has been approved by all key officials in the Philippine chain of command, including the Secretary of National Defense and the National Security Advisor. The communication and negotiation on this subject matter is kept on record in every detail by the Chinese side. Thanks to the “new model”, frontliners of both sides had guidance to follow on how to interact with each other, which made the resupply mission on last February 2 a smooth one. The AFP Spokesperson described this resupply mission as“flawless” in a post on social media X on the same day. Positive efforts of the frontliners in this regard are commendable.
China has always attached great importance to communication and dialogue with the Philippine DND and the AFP. In fact, on 5th of July 2023, Chinese Ambassador to the Philippines had the honor to pay a courtesy call on Defense Secretary Gilberto C. Teodoro Jr. at Camp Aguinaldo, exchanged views with the latter on China-Philippines military relations, and maritime issues, among other things. Duringing the meeting, the Philippine side was briefed on the "gentlemen's agreement" on the management of Renai Jiao. Readouts of the meeting were released respectively by the DND and the Chinese Embassy in the Philippines.
The above are facts, not narratives or inventions. China is always committed to managing the situation at Ren'ai Jiao and maintaining dialogue and communication with the Philippines in a responsible manner. It is regretable that despite the internal understandings and arrangements, peace and tranquility was disrupted again and again at Ren'ai Jiao. More and more questions are wracking our brains. Why does the Philippine administration keep denying and resisting the understandings and arrangements? Why does the DND refuse to properly manage maritime differences through dialogue and negotiation? Admittedly the "gentlemen's agreement" was reached during the previous Philippine administration, it is also a fact that the "new model" was reached during the incumbent Philippine administration. Then why was such a model which has been proven effective in practice for managing differences and avoiding conflicts abandoned again by the Philippines without any good reason after it worked only once? And who made the decision to abandon the "new model"? Could it be that managing differences and avoiding conflicts go against the interests of certain forces?
Statement from Secretary of National Defense of Philippines Gilbert Teodoro:
Statement from National Security Advisor Ano:
Ano’s comments about the piling of dead coral rubble is interesting.
Manalo: Philippine actions about national security, not US-China rivalry
Amid an onslaught of revelations, claims, truths, and half-truths from Beijing on the West Philippine Sea, Philippine Foreign Secretary Enrique Manalo wants to make one thing clear: Philippine actions in security, diplomatic, or economic ties are “for our own national purposes or national security” and not to play into superpower competition.
“We just answer it back. And we’re ready to answer it back also through our own releases. One common theme is that we hope China realizes that many of the actions we are taking are being taken for our own national purposes or national security and not in the context, let’s say, of a US-China competition or rivalry. We’re doing it for our own needs,” Manalo said in a sit-down interview that aired Friday, May 3, for Rappler’s World View with Marites Vitug.
Philippines cannot deny the existence of gentlemen's agreement: Chinese FM - Global Times
Philippine Defense Secretary Gilberto Teodoro Jr. and National Security Adviser Eduardo Ano issued separate statements on Sunday stating that “there was no discussion or briefing on any ‘gentlemen’s agreement’ or ‘new model’ and claims of ‘new model’ is absolutely absurd, ludicrous, and preposterous.”
Lin said during the press conference that China and the Philippines reached a "gentlemen’s agreement" after intensive communications and consultations at the end of 2021, which continued to be implemented by the current Philippine administration until February 2023, when the Philippines ceased to comply.
The Chinese side in September 2023 invited the Philippine President's special envoy to China for consultations on the management of the situation at Ren'ai Jiao and reached an internal understanding, which was agreed to by the Philippine leadership and implemented once for the subsequent transportation and replenishment mission, after which it was abandoned by the Philippine side.
China's territorial claims illegal, deceptive: U.S. Indo-Pacific chief - Nikkei Asia
U.S. Navy Adm. Samuel Paparo, who relieved Adm. John Aquilino at the ceremony, said China's actions go beyond the standard phrase of "gray zone."
"My friend Gen. Brawner from the Republic of the Philippines ... has renamed gray zone, which sounds otherwise benign and dull, into ICAD, which is illegal, coercive, aggressive and deceptive," Paparo said. He was referring to Gen. Romeo Brawner, chief of staff of the Armed Forces of the Philippines.
"This demonstrates the wisdom of our allies and partners," he said.
US Assembles ‘Squad’ Defense Group to Counter China in Indo-Pacific - Bloomberg
Secretary of Defense Lloyd Austin met Thursday with his counterparts from Australia, Japan and the Philippines as the US deepens ties with an emerging regional group that Pentagon officials have privately nicknamed, the “Squad.”..
A US official who requested anonymity to discuss the “Squad” said the grouping aims to counter coercion and aggression across Asia, as well as to ensure that defense capabilities among their militaries are increasingly inter-operable, allowing them to work more efficiently together in the event of conflict.
US assembles 'Squad' of allies to counter China - Global Times
Defense chiefs from the US, Australia, Japan and the Philippines gathered in Hawaii on Thursday (local time) for their second joint meeting, lining up yet another regional group dubbed the "Squad" by Pentagon officials, while vowing a strengthened alliance among the four countries.
Chinese analysts warned on Sunday that this new quadrilateral grouping, distinct from the older version of the Quad which was also assembled by the US, poses a more targeted challenge to China. The grouping, part of Washington's "Indo-Pacific Strategy," aims at containing China, leading to concerns about more complex tensions and division among regional countries.
Chinese analysts warned that the Philippines, increasingly manipulated by the US, is losing its autonomy and becoming a pawn of the US in the region, which could lead to the "Ukrainization" of the Philippines.
The Ministers and Secretaries expressed serious concern about the situation in the East and South China Seas. They strongly objected to the dangerous use of coast guard and maritime militia vessels in the South China Sea. They reiterated serious concern over the PRC's repeated obstruction of Philippine vessels' exercise of high seas freedom of navigation and the disruption of supply lines to Second Thomas Shoal, which constitute dangerous and destabilizing conduct. The Ministers and Secretaries emphasized the importance of upholding freedoms of navigation and overflight, and respect for international law, as reflected particularly in the United Nations Convention on the Law of the Sea (UNCLOS). They called upon the PRC to abide by the final and legally binding 2016 South China Sea Arbitral Tribunal Award and resolved to work together to support states exercising their rights and freedoms in the South China Sea.
5. Real estate sales still not improving
Reuters reports that “home sales fell in 19 of 22 surveyed cities during the five-day May Day compared to the same period of 2023”. The Politburo readout last week “called for coordinated research on policies and measures to digest existing housing stock and optimize new housing, to urgently establish a new model for real estate development and promote high-quality development of the real estate sector”. Some cities may feel acute pressure to “digest exist housing stock” as last week the Ministry of Natural Resources issued a notice suspending new land sales in cities where the existing housing supply is 36 months or greater.
China home sales slump 47% over May Day holiday vs 2023 | Reuters
Home sales fell in 19 of 22 surveyed cities during the five-day May Day compared to the same period of 2023, and were down more than 60% in mega cities of Guangzhou and Shanghai, according to data from the China Index Academy, one of the country's largest independent real estate researchers.
China’s Outstanding Personal Mortgages Shrink Even Faster - Caixin
China’s outstanding personal mortgages declined at a faster pace of 1.9% year-on-year at the end of March, as the protracted real estate downturn continues to weigh on demand.
The rate was 0.3 percentage points faster than a quarter earlier, resulting in a balance of 38.2 trillion yuan ($5.4 trillion) at the end of March, figures from the People’s Bank of China (PBOC) show.
It also marked the fourth straight quarter of decline in this key indicator of housing demand.
Shenzhen Eases Home Buying to Revive Sales in China Tech Hub - Bloomberg
The southern city bordering Hong Kong loosened personal income tax and social-insurance payment requirements for home buyers in some districts, and said it would allow local families with two or more children to buy another home in some non-core districts, Xinhua Finance reported
The Shenzhen policy announcement - 重磅!深圳楼市放宽限购!
自然资源部:去化周期超36个月城市暂停新增商品住宅用地出让 - 中国房地产业协会官方网站_中房网 This new directive will puts lots of pressure on local governments to clear their stocks of unsold homes, as if they have too much they can not sell land to raise more revenue
To adapt to the significant changes in the supply and demand relationship in the real estate market and to support the revitalization of existing land resources, promoting the stable and healthy development of the real estate market, on April 29th, the Ministry of Natural Resources issued a notice regarding the relevant work of residential land supply in 2024.
In the notice, it is proposed to reasonably control the supply of new residential land for commercial housing. Local authorities should optimize the scale, layout, and structure of commercial and office land and residential land according to market demand in a timely manner. They should also improve the regulation mechanism for the supply of residential land corresponding to the turnover cycle of commercial housing and the stock of residential land. If the turnover cycle of commercial housing exceeds 36 months, the allocation of new residential land for commercial housing should be suspended. At the same time, efforts should be made to revitalize existing land resources until the turnover cycle of commercial housing decreases to below 36 months. For cities where the turnover cycle of commercial housing is between 18 months (exclusive) and 36 months, the principle of "revitalizing as much as supplying" should be followed. The maximum area of newly allocated residential land for commercial housing should be dynamically determined based on the area of existing stock of commercial housing land revitalized within the year (including completed and recovered land).
为适应房地产市场供求关系发生重大变化的新形势,支持盘活存量土地,促进房地产市场平稳健康发展,4月29日,自然资源部发布《关于做好2024年住宅用地供应有关工作的通知》。
其中,通知提出合理控制新增商品住宅用地供应。各地要根据市场需求及时优化商业办公用地和住宅用地的规模、布局和结构,完善对应商品住宅去化周期、住宅用地存量的住宅用地供应调节机制。商品住宅去化周期超过36个月的,应暂停新增商品住宅用地出让,同时下大力气盘活存量,直至商品住宅去化周期降至36个月以下;商品住宅去化周期在18个月(不含)~36个月之间的城市,要按照“盘活多少、供应多少”的原则,根据本年度内盘活的存量商品住宅用地面积(包括竣工和收回)动态确定其新出让的商品住宅用地面积上限。
Chinese homebuyers favour ‘second-hand’ houses as property crisis bites - Financial Times
Second-hand home sales surpassed those of new homes by floor space last year for the first time since private property markets emerged in the 1990s, according to data from the China Real Estate Information Corporation.
China has released a plan to upgrade old urban infrastructure in major cities in a push to help build a more desirable living environment, according to a joint notice from the finance ministry and the country’s housing watchdog. Under the current plan, the first batch of cities this year — 15 in total — will mostly be megacities and big cities along the Yangtze River. Each province can recommend one city to participate, which will receive central government subsidies to help upgrade underground pipe and waste-water treatment systems, among other projects. Participating cities must meet three conditions. It must establish a working mechanism and working plan; the city must not undertake this project to add to invisible government debt; the city has not recorded any major safety incidents in recent years. After names are submitted, 现场答辩 an oral defense must be prepared by representatives from each city, after which scores will be assigned. The top 15 scoring cities will be announced. The winning cities, depending on their geographic location, will receive up to 800 million rmb to 1.2 billion rmb in 中央财政资金补助 central government subsidies.
6. Annual migrant worker survey
Shift in Economy Sees Rural Migrant Workers Seeking Jobs Closer to Home - Caixin
More rural migrant workers are looking for jobs near their home, rather than working at factories in the Yangtze River Delta or Pearl River Delta regions, a report by the National Bureau of Statistics (NBS) shows.
The property sector’s downturn has significantly reduced the number of migrant workers it needs in construction and more rural workers are seeking jobs in the service sector in big cities, according to the 2023 report on migrant workers.
Last year, among nearly 300 million rural workers, about 40% worked near their home, while 60% left their hometown for employment, of which less than 40% went to another province, the report said.
While the total number of migrant workers increased by 1.91 million in 2023, the number working in construction fell by 6.5 million from the previous year, the largest reduction in five years, the data shows.
The survey covered more than 8,600 rural communities in 31 provinces, and randomly selected 40,000 households of rural migrant workers living cities.
The survey - 2023年农民工监测调查报告_部门动态_中国政府网
Business, Economy and Trade
China’s Thrifty Travelers Show Consumer Confidence Remains Weak - Bloomberg Travelers made 28.2% more trips but spending only rose 13.5% from the 2019 break, the Ministry of Culture and Tourism said in a statement Monday. This translates to a 11.5% drop in spending for each traveler over the holiday ending Sunday, according to Michelle Lam, Greater China economist at Societe Generale. “The concern is that per-visitor spending was below 2019 levels, which means in general people are only keen on traveling but not so much on spending money,” Lam said. The 2019 holiday was one day shorter. // 2024年“五一”假期文化和旅游市场情况
China sees Labour Day tourism surge, paving way for sector’s full-spectrum recovery | South China Morning Post tourists spent an average of 565 yuan (US$78) this year – up 4 per cent year-on-year, but below the 603 yuan average reported for 2019.
May Day holidays see surge in tourism to lesser-known counties - Global Times Chinese tourists currently are "more focused on cost-effectiveness" when traveling to small cities or counties, as the accommodation and transportation costs are lower compared to larger cities, Wu Liyun, a professor of China Academy of Culture and Tourism of Beijing International Studies University, told the Global Times on Monday. Meanwhile, there's a trend that more and more tourists prioritize "quality and unique experiences," "leading them to seek out lesser-known or niche destinations," rather than those popular tourist spots that are crowded, said Wu.
Caixin - China’s Services Sector Expands While Employment Shrinks, Caixin PMI Shows Activity in China’s services sector grew for the 16th straight month in April on strong demand both at home and abroad. The labor market, however, remained in contraction, according to a Caixin-sponsored survey published Monday. The Caixin China General Services Business Activity Index, which provides an independent snapshot of operating conditions in industries such as retail and tourism, sank 0.2 points in April from the previous month to 52.5
Goldman Sachs, UBS, BNP more positive on Chinese stocks as chorus of favourable sentiment grows in run-up to July plenum | South China Morning Post Goldman analysts said valuations for the yuan-traded stocks, also known as A shares, may expand by as much as 40 per cent if China’s market manages to close gaps with global leaders in terms of factors including dividend payouts, buy-backs, corporate governance and institutional ownership after the sweeping reforms.
Caixin - China Tightens IPO Requirements for STAR Market Hopefuls The China Securities Regulatory Commission’s (CSRC) guidelines for evaluating companies’ qualifications to list on the STAR Market was updated on Tuesday to incorporate greater emphasis on investment in research and development and commercialization of their technologies. The update is aimed at implementing the State Council’s new guidelines on supporting the high-quality development of the capital markets, as well as the CSRC’s new rules that tighten listing controls to improve the quality of listed companies, the regulator said in a statement accompanying the update.
China’s central bank survey shows ‘precarious’ job market, low consumption demand still weighing on economy | South China Morning Post The findings of the People’s Bank of China published last week indicate continued challenges for policymakers, who have been counting on domestic consumption to propel the post-Covid economy towards this year’s growth target of around 5 per cent. Among 20,000 residents across 50 cities interviewed for the survey, 46.5 per cent described the job situation in January to March as “precarious” and “uncertain”, saying they found it “hard to be employed”...
A separate PBOC survey of entrepreneurs, also released last Tuesday, showed nearly 42 per cent felt macroeconomic fundamentals such as jobs, and supply and demand were beginning to cool, with many expecting fewer orders.
The Rocket Fuel Behind China Shock 2.0: Weak Currency, Deflation - WSJ China’s real effective exchange rate, which adjusts for differences in inflation between China and its major trading partners, is back to where it was in 2014, unraveling a decade of steady appreciation. This real-terms weakness of China’s currency, also known as the renminbi, is turbocharging China’s overseas sales at the expense of other exporting nations.
China's CICC Demotes Senior Bankers, Cuts Pay to Slash Costs - Bloomberg CICC has communicated to bankers internally that some individuals could lose their managing director titles and be relegated to lower ranks under a new performance-rating system that took effect recently, said the people, who declined to identified because the discussions were private.
Chinese milk tea products allegedly satirizing Japan disposing of nuclear-contaminated water triggers sensation among netizens; sales soar 400 percent - Global Times A Chinese netizen discovered that MECO fruit tea, a drink under the brand of Xiang Piao Piao, sells products in a store in Japan with slogans on their cup sleeves showing "the ocean is not Japan's sewer" and "0.1 percent of the land pollutes 70 percent of the ocean." The picture was then exposed on Chinese media social platform. Tens of thousands of simultaneous viewers visited Xiang Piao Piao's live stream over the weekend after the matter went heated, in which three of the six items were sold out during the live. The daily sales of its store have skyrocketed from 2,500 yuan ($346) to 1 million yuan, according to media reports.
Schumer, at-risk Dems ask Biden to hike tariffs on China - POLITICO A group of Midwestern Senate Democrats, joined by Majority Leader Chuck Schumer, are urging the Biden administration to raise tariffs on China, warning that any cuts to Trump-era duties could hurt U.S. workers — and, implicitly, give the former president an electoral attack line on Democrats. Their letter to President Joe Biden, obtained by POLITICO, is the strongest push yet from lawmakers to influence the outcome of Biden’s multi-year review of the tariffs, imposed by Trump in 2018 on more than $300 billion of imports from China.
Caixin Cover Story: U.S. Widens China Trade Fight to Shipbuilding Which It Lost Decades Ago The investigation into China’s shipbuilders isn’t expected to impact the industry in the short-run as companies have production scheduled for the next three to four years, a senior shipbuilding executive told Caixin. But the long-term implications of the geopolitical tensions could severely harm production, sales and investments of Chinese enterprises, he said.
两方面入手壮大耐心资本 为发展新质生产力提供长期稳定金融活水-证券日报网 Securities Daily on the concept of "patient capital" discussed in the readout of the April Politburo meeting - "To strengthen patient capital from two aspects and provide long-term stable financial support for the development of new productive forces". excerpt:
On April 30th, the meeting of the Political Bureau of the Communist Party of China (CPC) proposed adapting development strategies to local conditions to foster new productive forces. It emphasized the need to strengthen the layout of national strategic scientific and technological capabilities, nurture and expand emerging industries, proactively plan for future industries, and employ advanced technologies to empower the transformation and upgrading of traditional industries. The meeting also emphasized the active development of venture capital and the enhancement of patient capital.
4月30日,中共中央政治局会议提出,要因地制宜发展新质生产力。要加强国家战略科技力量布局,培育壮大新兴产业,超前布局建设未来产业,运用先进技术赋能传统产业转型升级。要积极发展风险投资,壮大耐心资本
Patient capital, also known as long-term capital, is an important partner in the marathon of "hard technology." Market observers believe that patient capital provides stable financial support for the upgrading of traditional industries, the growth of emerging industries, and the development of future industries, making it an important "booster" for the development of new productive forces.
耐心资本也是长期资本,是陪伴“硬科技”长跑的重要搭档。在市场人士看来,耐心资本为传统产业升级,培育壮大新兴产业,建设未来产业提供稳定的金融活水,也是发展新质生产力的重要“助推器”。
The deployment of "strengthening patient capital" by the meeting of the Political Bureau of the CPC corrects the phenomenon of past short-term capital with its "fast in, fast out" approach in a timely manner. This holds significant importance for the high-quality development of venture capital and the cultivation of new productive forces. Tian Xuan, Vice Dean of the Tsinghua University PBC School of Finance, told Securities Daily that, firstly, it will guide the transformation of investment philosophy in the venture capital market towards long-termism, enhancing market vitality through a shift to "invest small, invest early." Secondly, it will further improve and strengthen the institutional system of patient capital, increase policy support, gradually improve the entire process system of venture capital market access, fund management, and exit channels, and create a better development environment for venture capital. Finally, it will increase government participation, guide more long-term funds into the market, focus on high-quality enterprises with genuine innovation attributes and long-term development potential, expand the scale of the venture capital market, and support the high-quality development of the real economy...
中共中央政治局会议对“壮大耐心资本”的部署,是对以往“快进快出”式短期资本现象的及时矫正,对于风险投资高质量发展和发展新质生产力具有重要意义。清华大学五道口金融学院副院长田轩对《证券日报》记者表示,首先,将引导风险投资市场转变投资理念,转向长期主义,提升“投小、投早”的市场活力。其次,将促进进一步完善壮大耐心资本的制度体系,加大政策支持力度,逐渐健全风险投资市场准入、基金管理、退出渠道等全流程制度体系,为风险投资创造更加优良的发展环境。最后,将加强政府参与力度,引导更多长期资金入市,关注真正具有创新属性和长期发展潜力的优质企业,壮大风险投资市场规模,助力实体经济高质量发展。
Patient capital can meet the development needs of new productive forces, providing stable capital support for technological innovation, the upgrading of traditional industries, and the cultivation of new industries, promoting high-quality economic development," Tian Xuan stated. Patient capital refers to long-term capital that can be stably invested, withstand higher risks, and traverse economic cycles. Strengthening patient capital is essential to fully leverage the role of capital, encourage entrepreneurial spirit, and cultivate the "craftsman spirit" of the capital market. This guides capital to adhere to "long-termism," expand the scale of long-term capital, invest in key areas and critical junctures of national strategic development, and support the development of the real economy.
“耐心资本可以满足新质生产力发展需求,为技术创新、传统产业升级、新产业培育提供稳定的资本支持,推进经济高质量发展。”田轩表示,耐心资本即指能稳定投入、可承受较高风险和穿越经济周期的长期资本。壮大耐心资本才能充分发挥资本作用,鼓励企业家精神,锻造资本市场的“工匠精神”。从而引导资本坚持“长期主义”,做大长期资本规模,投入国家战略发展的重点领域和关键环节,助力实体经济发展。
Venture capital, also known as entrepreneurial investment, is considered by market observers to be in line with the spirit of the recent meetings of the Political Bureau of the Communist Party of China (CPC), the Central Economic Work Conference, and the 2024 Government Work Report.
风险投资又称创业投资。在市场人士看来,此次中共中央政治局会议与中央经济工作会议精神和2024年《政府工作报告》一脉相承。
The Central Economic Work Conference held in 2023 proposed "encouraging the development of venture capital and equity investment." When explaining the spirit of the Central Economic Work Conference, relevant officials from the Central Finance and Economics Office stated, "By encouraging the development of venture capital and equity investment, we support more long-term capital and patient capital to be invested in technological innovation.
2023年召开的中央经济工作会议提出,“鼓励发展创业投资、股权投资”。中央财办有关负责同志详解中央经济工作会议精神时表示:“要通过鼓励发展创业投资、股权投资,支持长期资本、耐心资本更多地投向科技创新。”
Yicai - Riding China’s High-Speed Trains to Cost Nearly 20% More From June 15 The last price hike was in June 2021, when the biggest increase for a second-class ticket on a Shanghai-Beijing high-speed train was nearly 11 percent to CNY662 from CNY598 (USD94 from USD85). But this time, a dynamic pricing system will be introduced, offering as much as 45 percent off tickets based on market conditions, seat class, as well as travel dates and times.
Caixin - China’s Top Trade Fair Draws Record Buyers, but Not Record Orders A total of 246,000 foreign buyers showed up for the spring session of the biannual Canton Fair, up 24.5% from last year’s autumn session, official figures show. The value of the orders they placed rose 10.7% to $24.7 billion.
发改委召开大规模设备更新工作座谈会 这些民企参与_手机新浪网 The National Development and Reform Commission held the second symposium on equipment upgrading and the “swapping old for new” campaign in consumer products, Cailian reported. Among the meeting attendees were representatives from the private sector, who said equipment upgrading would help firms improve their competitiveness and people’s living standard. Zheng Shanjie, director of the NDRC, said he would work with other departments and local governments to help support these initiatives, using a combination of tools including fiscal measures, financing support and taxation.
Caixin Opinion: How to Ensure Equipment Upgrades Give China’s Economy a Second Wind - Caixin Global Domestic equipment upgrades have significant potential. The head of the National Development and Reform Commission recently stated that this would be a huge market, estimated to exceed 5 trillion yuan ($690.6 billion) annually. Massive equipment upgrades are indeed necessary in China’s industrial sectors. According to the “Juglar cycle” theory in economic cycles, focusing on equipment replacement to drive capital expenditure, the span generally ranges between eight to 10 years, closely linked with equipment lifespan and technological advancements. Experts have analyzed that since the economic reforms, China has undergone four Juglar cycles and is currently in its fifth. From practical experience, the Chinese government has implemented several rounds of equipment upgrades in the past with notable success, such as the national debt technology upgrade at the turn of the century, which, combined with the three-year state-owned enterprise reform, laid an important foundation for China’s rapid economic development after entering in the World Trade Organization.
China Builder Vanke Tells Investors It Readied Money to Pay Bond - Bloomberg State-backed builder China Vanke Co. told some investors recently that it has readied cash to repay its 1.45 billion yuan ($201 million) note due May 25, according to people familiar with the matter. The security is indicated at 97.6 yuan, suggesting investors’ high conviction that the issuer will be able to repay the debt at maturity, according to Bloomberg-compiled data.
China Is Buying Gold, Sending Prices to Record Highs - The New York Times Gold consumption in the country rose 6 percent in the first quarter from a year earlier, according to the China Gold Association. It came on the heels of a 9 percent increase last year.
补短板、强规范——多部门为新业态劳动者加快撑起“保护伞” _ 经济参考网 _ 新华社《经济参考报》官方网站 As of the end of March, 8 million workers have been covered by a pilot program related to occupational injury compensations. The program is part of a broader effort to ensure the rights and health of workers in platform economies like food delivery and drivers for car-hailing services. The pilot program started in July 2022 in seven provinces and cities including Beijing, Shanghai, Jiangsu, Guangdong and more. The Economic Information Daily recounted a story of a Meituan food delivery worker, who received 41,900 rmb in injury subsidy for a fracture after a fall during work. 自2022年7月起,新就业形态就业人员职业伤害保障在北京、上海、江苏、广东等7省市的美团、饿了么、闪送、货拉拉、曹操出行等7家平台企业开展试点。截至2024年3月末,已有801.7万人被纳入保障范围。
This is Tim: Complete transcript of Apple’s Q2 2024 analyst call – Six Colors if you look at our results in Q2 for Greater China, we were down eight. That’s an acceleration from the previous quarter, in Q1, and the primary driver of the acceleration was iPhone. And if you then look at iPhone within mainland China, we grew on a reported basis. That’s before any kind of normalization for the supply disruption that we mentioned earlier. And if you look at the top selling smartphones, the top two in urban China are iPhones. And while I was there, it was a great visit, and we opened a new store in Shanghai, and the reception was very warm and highly energetic. And so I left there having a fantastic trip and enjoyed being there, and so I maintain a great view of China in the long term. I don’t know how each and every quarter goes and each and every week. But over the long haul, I have a very positive viewpoint.
Walking back a report on Nippon-China ties - POLITICO The geopolitical intelligence firm Horizon Advisory quietly toned down a report tying Japan’s Nippon Steel to China’s state-backed steel industry in an amended publication last month. A lobbyist familiar with the changes confirmed to Morning Trade that they came amid meetings with both Senate and House offices in recent weeks aimed at rebutting the allegations in the initial report...the authors of the Horizon report appear to now be walking back various portions that tied Nippon’s operations to major Chinese steel and manufacturing companies, following pushback from the Japanese company, and have tamped down their risk assessment of the acquisition.
Henry Huiyao Wang's transcript on Semafor's 2024 World Economy Summit The so-called overcapacity and oversupplies that are a bit, you know, overestimated because there's a big demand for EV cars worldwide; and the Global South needs that. Also, there's a big demand for solar panels. We need low-cost solar panels to combat climate change. If China can produce this effectively, why not benefit the world? You know, China buys a lot of airplanes from the U.S.; China doesn't refuse to buy them because they were invented by the Wright brothers or they are made in the U.S. We should have that kind of mentality. We should really take advantage of the competitive advantage of every country and really benefit the world for development.
China's Zeekr seeks up to $5.13 bln valuation in US IPO | Reuters Electric vehicle maker Zeekr Intelligent Technology Holding said on Friday it was targeting a valuation of up to $5.13 billion in its U.S. initial public offering (IPO), the first major floatation of a China-based company in more than two years. Zeekr is looking to raise up to $367.5 million by selling 17.5 million American depositary shares (ADSs) priced between $18 and $21 each. // Comment: Here is the SEC filing. This statement in the Zeekr F-1 appears to be inaccurate:
On October 4, 2023, the European Commission published a notice of initiation of EU anti-subsidy investigations into EU imports of BEVs from China (the “EU Subsidy Probe”). Using the sampling method, the European Commission selected Geely Auto as one of the investigation targets of the EU Subsidy Probe, and Geely Auto is actively cooperating with the investigation."
If Politico's reporting is correct: "European Commission warns BYD, SAIC and Geely that their lack of cooperation frees its hands to impose higher penalties, letters seen by POLITICO show."
Biden Gives Carmakers a Break on Tough-to-Trace EV Materials - Bloomberg Starting in 2025, plug-in cars containing critical minerals from businesses controlled by US geopolitical foes, including China, will be ineligible for up to $7,500 tax credits, the Treasury Department said Friday. Automakers will get an extra two years, however, to shore up sourcing of graphite and other materials considered difficult to trace to their origin.
Politics and Law
中国海洋石油集团有限公司原副总经济师,中海石油气电集团有限责任公司原党委书记、董事长齐美胜接受纪律审查和监察调查————要闻——中央纪委国家监委网站 Qi Meisheng, former Deputy Chief Economist of China National Offshore Oil Corporation Limited, and former Party Secretary and Chairman of China Offshore Oil, Gas & Power Group Limited, is under investigation
Second volume of book about Xi's stories with university students published-Xinhua The second volume of the book about Xi Jinping's stories with university students has been published recently by the China Youth Publishing Group. The new volume tells the vivid stories of Xi's inspections to universities and his care about and guidance to university students through 24 interviews.
Red Renaissance - China Media Project the drive to foster cultural enrichment at the grassroots is part of a broader effort by the CCP to tighten its grip on society, echoing the rural-based political movements of the Party’s past. Accelerating since late last year under the notion of “Xi Jinping Thought on Culture” (习近平文化思想), China’s “revitalization of rural culture” (乡村文化振兴) is not a cultural rebirth but a red renaissance. And a more careful reading of China’s reporting on the policy hints at record levels of cultural waste.
Parents of Tsinghua student poisoned in 1994 call for fresh investigation - China Daily Chinese prosecutors recently accepted an application to examine irregularities in the police investigation of an unsolved poisoning case that has attracted public attention for nearly three decades. Zhu Ling, a chemistry student at Tsinghua University in Beijing, began experiencing symptoms of poisoning from the heavy metal thallium in late 1994. She was left paralyzed with brain damage, and required 24-hour care from her parents.
Caixin - 人事观察|“有福之州”迎来“70后”女书记_政经频道_财新网 Guo Ningning, a standing vice governor of Fujian Province and an alternate member of the Central Committee, has taken office as the Secretary of the Fuzhou Municipal Committee. Graduated from Tsinghua University in her early years, she worked for more than 20 years at the Bank of China and Agricultural Bank of China. She is the first female provincial-level party committee member born in the 1970s in China 候补中委、福建省常务副省长郭宁宁履新福州市委书记,早年毕业于清华大学,在中国银行、农业银行工作20余年,是全国首位“70后”女性省级党委常委
China’s provinces trim thousands of government jobs to spend more on Beijing’s science and control priorities | South China Morning Post China’s regional governments are painstakingly trimming tens of thousands of staff from their vast public institutions to spend more on new policy priorities, including scientific research and grass-roots positions aimed at maintaining social stability.
China erases memory of ‘white paper’ protests in further threat to journalism | Press freedom | The Guardian Few traces of the movement remain in China. Authorities have since censored online reporting of the event and silenced those who dared to document or commemorate it. Among them is Chen Pinlin, a film-maker who released a film about the demonstrations on YouTube and X, both inaccessible in China, to mark the first anniversary of the protests. Chen, who goes by the pseudonym “Plato”, was arrested in January by Shanghai police and held at Baoshan detention centre. On 18 February, he was charged with “picking quarrels and provoking trouble”
Foreign and Defense Affairs
Putin Plans to Meet Xi in China Days After His New Term Starts - Bloomberg The visit is scheduled for May 15-16, a person familiar with the Kremlin’s plans said. The dates may yet change slightly, but even if they do, the trip for talks with Chinese President Xi Jinping will be Putin’s first travel abroad after his inauguration at the Kremlin on May 7
Question: And after his China visit Putin will head to North Korea?
China is "guiding" Iran's deadly new drones, MoD scientists say | UK | News | Express.co.uk An Iranian Arash-2 kamikaze drone, which was recovered from the Negev desert following Tehran's attack on Israel, was found to contain a Chinese guidance system
Behind the Scenes: China’s Increasing Role in Russia’s Defense Industry - Carnegie Endowment for International Peace Publicly available customs data indicate that every month, China is exporting over $300 million worth of dual-use products identified by the United States, the European Union, Japan, and the United Kingdom as “high priority” items necessary for Russia’s weapons production (Figure 1). While monthly transactions have declined from a peak of over $600 million in December 2023, China remains Russia’s largest supplier of these controlled products.
U.S. Imposes Sanctions on Chinese Companies for Alleged Support of Russian Military The companies from the Chinese mainland and Hong Kong were among nearly 300 individuals and entities named by the U.S. due to their alleged involvement in areas linked to Russia including producing drone parts, gunpowder precursors, optical instruments, microelectronic components, and shipping, according to statements from the U.S. Treasury and State Departments on Wednesday. Two companies based in the Chinese mainland, namely Hengshui Heshuo Cellulose Co. Ltd. and Hengshui Yuanchem Trading Ltd., were accused by the U.S. Treasury Department to have shipped “large quantities of” nitrocellulose, a key explosive precursor for producing gunpowder and rocket propellants, to Russia.
The Real Motives for China’s Nuclear Expansion | Foreign Affairs - Zhao Tong
A close assessment of the evolving thinking within China’s political leadership and security policy circles reveals that Chinese officials are not simply expanding their nuclear arsenal for military-technical purposes. Rather, Chinese leaders seem to have embraced the untested belief that nuclear weaponry grants them greater geopolitical leverage to counter perceived threats. Beijing’s objections to what it sees as an unfair U.S. nuclear strategy and illegitimate U.S. security interests further solidify its willingness to use unilateral measures to address its security concerns. Washington must understand how these underlying perceptions shape Beijing’s nuclear policy if it wants to steer the U.S.-Chinese relationship in a more prudent direction—or risk responding on the basis of flawed assumptions, with potentially counterproductive or even catastrophic results...
These nontechnical factors introduce obstacles to nuclear dialogue that are comple and poorly understood by observers outside China. American analysts and others in the West continue to narrowly fixate on the military-technical factors that have shaped China’s nuclear strategy in the past to explain the country’s current nuclear expansion. To be sure, Chinese strategists have expressed concerns for decades that U.S. homeland missile defenses, conventional precision strike weapons, and other nonnuclear technologies would make it more difficult for China to retaliate if it endured a nuclear first strike. But the United States has not significantly expanded its nuclear forces, conventional missile stockpiles, or homeland missile defense systems in recent years, suggesting that additional factors lie behind Xi’s decision to embrace nuclear expansion.
Most foreign analysts and policymakers fail to appreciate the extent to which China’s nuclear expansion is motivated by ambiguous political reasoning and muddled thinking and instead interpret it as being driven by an offensive military strategy.
Face-Off: The U.S. vs China: Doomsday on Apple Podcasts
China is rapidly expanding its nuclear arsenal even as arms control treaties are shredded. Can China and the U.S. come to the table and agree to nuclear arms control accords? Should Artificial Intelligence control nuclear weapons?
Guest: Tong Zhao; Chinese born nuclear expert now at Carnegie China in DC
China's police chief meets New Zealand police commissioner -Xinhua Chinese State Councilor and Minister of Public Security Wang Xiaohong met with Commissioner for New Zealand Police Andrew Coster in Beijing on Monday. Wang said that the two countries' law enforcement agencies have carried out candid exchanges and efficient cooperation over the years, achieving fruitful results in combating crimes related to financial and telecommunication fraud, as well as narcotics.
China, Japan, S.Korea to hold trilateral leaders' meeting; cooperation beneficial for E.Asia's economy, stability: expert - Global Times South Korea is in final consultations with China and Japan to hold a trilateral meeting of their leaders on May 26 and 27, according to South Korea's Ministry of Foreign Affairs on Saturday. An official at the ministry said that the three countries agreed to hold the meeting "at the earliest date convenient for all sides." According to South Korea's Yonhap News Agency, Chinese Premier Li Qiang and Japanese Prime Minister Fumio Kishida are expected to visit Seoul to meet with President Yoon Suk Yeol, as South Korea is the current rotating chair.
The new government looks to enhance cooperation with China: Argentine FM - Global Times The new Argentine government is looking to cooperate with China, Argentine Foreign Minister Diana Mondino told the Global Times in an exclusive interview on Monday. She also said that the Belt and Road Initiative (BRI) is very important for Argentina, and the Argentine government will continue to maintain an open attitude toward foreign investment, including from China.
German FM hyping China issues during trip to S.Pacific exposes Germany's deep political divisions - Global Times German Foreign Minister Annalena Baerbock's ongoing visit to Australia, New Zealand and Fiji in the South Pacific is a way of balancing the impact of German Chancellor Olaf Scholz's China trip, which exposed deep political divisions within the German government, said Chinese analysts when commenting on Baerbock's recent remarks in which she warned against becoming too reliant on China. While Scholz recently visited China and reached many positive agreements, Germany's foreign and economic departments, controlled by the far-right Greens, have been at odds with the Social Democratic Party led by Scholz, especially on China policy, which could affect China-Germany cooperation and hinder Germany's own economic and social recovery, analysts warned.
Chinese premier congratulates Solomon Islands' new PM on assuming office-Xinhua Li Qiang on Monday congratulated Jeremiah Manele on his assuming office as prime minister of the Solomon Islands. In his congratulatory message, Li said that China and the Solomon Islands are comprehensive strategic partners featuring mutual respect and common development for a new era.
China hacked Ministry of Defence, Sky News learns | Sky News The Chinese state has hacked the Ministry of Defence, Sky News understands. MPs will be told on Tuesday of a massive data breach involving the MoD, targeting service personnel.
China, Cambodia to hold "Golden Dragon 2024" joint exercise - China Military the Chinese and Cambodian militaries will hold the "Golden Dragon 2024" joint exercise under the theme of "joint counter-terrorism operations and humanitarian relief" in Cambodia in mid-to-late May. This is the sixth China-Cambodia "Golden Dragon" joint military exercise
Remarks by China’s Permanent Representative to the UN Ambassador Fu Cong at the UN General Assembly Meeting on the Use of Veto On the Palestinian-Israeli issue, the United States has used its veto dozens of times. Since the outbreak of the current conflict in Gaza, the United States has used its veto five times, four of which to block the ceasefire in Gaza, and this time to single-handedly block Palestine’s formal admission to the United Nations. With intransigence based on its own interests and geopolitical calculations, the United States has repeatedly resorted to veto in an abusive manner, which is not commensurate with the role of a responsible power. We hope that the United States will truly uphold an objective and impartial position and join the international community’s action for justice, so as to play a due constructive role in stopping the war and alleviating the humanitarian catastrophe in Gaza.
US again fails to bring cease-fire to Gaza, 'more civilian casualties unavoidable if Israel attacks Rafah' - Global Times As long as the conflict continues, the pro-Palestine protests in universities in the US and many other major Western countries will continue, and this will surely damage the image of the Joe Biden administration, as all of this proves that Biden is refusing to try his best to stop Netanyahu, experts said. They noted that the pro-Palestine protesters are mostly Democratic voters, and after a series of conflicts with US police, many of them might realize that political elites in the Democratic Party are just using them and failing to deliver what they are asking for. If they don't vote for Biden, Trump will have a chance to win, and this is exactly what Netanyahu is waiting for, they said.
Xi sends congratulations to 15th session of the Organisation of Islamic Cooperation summit | english.scio.gov.cn Xi Jinping on Saturday sent a congratulatory message to the opening of the 15th session of the Organisation of Islamic Cooperation (OIC)'s Islamic Summit Conference in Banjul, capital of The Gambia...China stands ready to keep on working with Islamic countries to continue traditional friendship, enhance political mutual trust, deepen practical cooperation, expand exchanges among civilizations, jointly implement the Global Development Initiative, Global Security Initiative and Global Civilization Initiative, and make greater contribution to the building of a community with a shared future for mankind, he said.
The Death of a Treaty Could Be a Lifesaver for Taiwan - The New York Times Without the legal restrictions of the I.N.F. Treaty, the Pentagon began experimenting with existing assets. Sealed canisters containing Tomahawk and SM-6 missiles were mounted onto small trucks and hidden in shipping containers. Publicly, the Navy says the missile has a maximum range of about 115 miles. But the SM-6 can in fact reach targets at ranges of 290 miles, officials confirmed to The New York Times, speaking on the condition of anonymity to discuss sensitive weapons capabilities.
Spy agencies kept Australian MPs in dark after they were targeted by Chinese hackers | The Nightly Australia’s spy agencies were told twice that a group of Australian MPs belonging to an international committee on China had been targeted by Chinese hackers — but the authorities chose to keep the MPs in the dark about the cyber attacks. The Nightly understands that a Five Eyes intelligence agency first warned Australia’s agencies in mid-2021 that the attacks had taken place in January 2021.
EU lobbies China to keep agriculture out of trade disputes - Financial Times “My intention is to do everything which is possible to avoid the situation that agriculture is a victim of the problems in other sectors,” EU agriculture commissioner Janusz Wojciechowski said in an interview during a visit to Beijing late last month. Wojciechowski added that he told “Chinese partners” that “we should treat agriculture as a sector which requires special protection . . . as a strategic sector, strategic for security”.
United States-Japan-Australia Trilateral Defense Ministers' Meeting (TDMM) 2024 Joint Statement, May 2, 2024 > U.S. Department of Defense > Release The Ministers reiterated their strong opposition to any attempts by the People's Republic of China (PRC) to unilaterally change the status quo by force or coercion in the South and East China Seas. This includes concerning and destabilizing actions in the South China Sea, such as unsafe encounters at sea and in the air, the militarization of disputed features, and the dangerous use of coast guard vessels and maritime militia, including interference with routine maritime operations, and efforts to disrupt other countries' offshore resource exploration. They strongly objected to China's claims and actions that are inconsistent with international law including the United Nations Convention on the Law of the Sea (UNCLOS), and which undermine international rules, standards, and norms. They resolved to work together to support states being able to exercise their rights and freedoms in the maritime domain, including the freedoms of navigation and overflight, consistent with UNCLOS.
CCG welcomed to special dinner with media leaders in NYC - CCG Henry Huiyao Wang, Founder and President of the Center for China and Globalization (CCG), and Mabel Lu Miao, Co-Founder and Secretary-General of CCG, are visiting the U.S. this week. In New York City, they were welcomed on April 29 to a special dinner hosted by Norman Pearlstine featuring U.S. media and thinktank leaders including Fareed Zakaria, Almar Latour, Alan Murray, Lori Murray Peter Spiegel, Steven Swartz, Martin Smith, Paul J Bascobert, Jane Bascobert, Jane Boon, Andy Browne, Marcus W Brauchli, Dorinda (Dinda) Elliott, Mike Federle, Alice Young, Orville Schell, Jing Qian, Fred Teng, and Max Lu.
Is Bougainville the next battleground between China and the United States? - The Washington Post The Pacific region is hoping a huge, abandoned copper-and-gold mine will be its ticket for independence from Papua New Guinea. But which superpower will back it?
China Has Crossed Biden’s Red Line on Ukraine - WSJ In a telling essay this month in the Chinese Communist Party’s top ideological and policy journal, Chen Yixin—the current head of China’s premier spy agency—promoted the idea of waging “struggle” far beyond China’s borders. Mr. Chen’s essay in the magazine Qiushi included a line that may as well serve as the informal slogan of the axis of chaos: “Seek advantages and avoid disadvantages in chaos. 在变局中把握规律、在乱局中趋利避害”
Beijing Braces for a Rematch of Trump vs. China - WSJ Other Beijing officials are inviting U.S. and other Western experts to scenario-planning sessions aimed at gauging the pace and the scope of U.S. export controls should Trump win again. // Question: Who are the experts participating in this? Would be fascinating to hear what questions are being asked
The Dictator’s Son Wanted His Yacht Back. That’s When Trouble Started for Two Oilmen. - WSJ Washington finds itself in a pinch, however. The Biden administration criticizes Equatorial Guinea’s human-rights record. But it is also worried the Obiangs, if at odds with the U.S., might allow China to build a naval base on the Atlantic Ocean. Washington sees the prospect of Chinese warships rearming and refitting at an Atlantic port as a national-security threat.
Americans Remain Critical of China | Pew Research Center For the fifth year in a row, about eight-in-ten Americans report an unfavorable view of China, according to a new Pew Research Center survey. Today, 81% of U.S. adults see the country unfavorably, including 43% who hold a very unfavorable opinion. Chinese President Xi Jinping receives similarly negative ratings.
An Australian pilot was forced to take evasive action after a Chinese military jet detonated flares close to a Navy helicopter that was operating in international waters near South Korea.
The Defence Department has described the actions of the J-10 Chinese Air Force plane as "unsafe and unprofessional" following the incident which took place in the Yellow Sea over the weekend.
On Saturday a MH-60R Seahawk which had launched from HMAS Hobart was intercepted by the People's Liberation Army-Air Force (PLA-AF) as it was taking part in a UN mission to enforce sanctions against North Korea.
Hong Kong
Hong Kong Shares' Sharp Rally Shows Return of the China Trade - Bloomberg We’ve been seeing real money — from less speculative asset managers such as mutual funds — buying Hong Kong-listed shares, according to conversations I’ve had with multiple brokers on trading desks in the city. Buying is most concentrated in large-cap blue-chips, such as AIA Group Ltd., Meituan and Tencent, as these global long-only funds rush to get on the China wagon and thus focus on the most-liquid names. As of March, they allocated only 5% of their portfolios to China, down from 15% at the 2021 peak, data from EPFR show.
Beijing’s Show of Resolve Helps Drive Hang Seng on 10-Session Win Streak, Analysts Say Hong Kong’s benchmark stock index rose for the 10th straight session on Monday, as global investors are regaining confidence in the Chinese market after a recent Politburo meeting showed policymakers’ commitment to fixing problems with the economy. As of Monday, the Hang Seng Index was up 9% this year. Foreign investment was likely a driving force behind the recent run-up in the market, according to a Sunday report by Huatai Securities Co. Ltd
U.S. law firm Mayer Brown prepares split from Chinese operations - Nikkei Asia American law firm Mayer Brown is set to carve out its Hong Kong operation amid U.S.-China tensions and an economic downturn on the mainland, Nikkei Asia has learned, a move that will make it the second high-profile legal company to leave the market in recent months.
Taiwan
Foreign Ministry Spokesperson Lin Jian’s Regular Press Conference on May 6, 2024
CCTV: At a seminar held by a US think tank, Mark Lambert, US Deputy Assistant Secretary of State in the Bureau of East Asian and Pacific Affairs and China Coordinator said that Resolution 2758 does not endorse, equate to, or reflect an international consensus on the one-China principle and has absolutely no bearing on countries’ sovereignty choices with respect to their relationships with Taiwan. He said the resolution did not preclude Taiwan’s meaningful participation in the UN system and other multilateral fora and did not constitute a UN institutional position on the political status of Taiwan. What’s your comment?
Lin Jian: Mark Lambert’s remarks is a total distortion of the resolution and facts. They misrepresent the history, and tread upon the international law and basic norms of international relations. It is shocking and outrageous that a US State Department official overseeing China-US relations would speak so irresponsibly and brazenly tell and spread lies. The Chinese side has strongly protested to the US side on those remarks…UNGA Resolution 2758 brooks no challenge, and the one-China principle is unshakable. To play the “Taiwan card” is to drive oneself into the wall
Tech and Media
Year After Going Under, China’s Iconic Online Forum Plots a Comeback - SixthTone Announcing that it had secured the funds to restart, the online forum Tianya also revealed plans to introduce e-commerce services and paid memberships to remain financially viable.
Internet censorship creates another hurdle for Chinese migrants For the past few years, social media platform Douyin, the Chinese version of the short video sharing app TikTok, was a gathering place for those who aspire to migrate to the US through Zouxian (走线), or trail walking, which refers to crossing into the southern border of the United States by way of Southern American countries and Mexico. People shared valuable tips and knowledge of Zouxian and documented their own journeys on the platform. Group chats were created and communities were formed. But since last year, the platform has been quietly cracking down on Zouxian content, shutting down group chats and suspending influencial users
Kenny Huang: How Chinese Investor Charmed Hollywood, Then Vanished - Deadline
Society, Arts, Sports, Culture and History
The death toll after a highway gave way in China’s rain-hit southern province of Guangdong has rise to 48, making it China’s deadliest road collapse incident in over a decade.
A section of the Meizhou-Dabu highway collapsed around 2am on Wednesday in Dabu county in Guangdong’s northern city of Meizhou. Around 18 metres (59 feet) of the mountainous highway crumbled into the forested slope beneath, causing vehicles to fall.
Individual praised for saving lives in highway cave-in accident - Global Times Wang Xiangnan, a truck driver, who halted his cold chain truck on the expressway to stop cars during the collapse of the Meizhou-Dabu Expressway, was rewarded with 10,000 yuan(approximately $1,413) from a justice and courage association in Puyang, located in Central China's Henan Province on Sunday. Huang Jiandu, who bravely knelt in the middle of the road to halt traffic on the highway, was also honored with a reward in South China's Guangdong Province.
Vice premier stresses all-out rescue and relief work after deadly road collapse-Xinhua Vice Premier Zhang Guoqing has stressed sparing no effort in carrying out rescue and relief work after a section of an expressway collapsed early Wednesday in south China's Guangdong Province.
Guangdong Province begins geological hazard investigation - China Daily
Guangdong Province in South China has started a province-wide comprehensive investigation of geological hazards in its highways, railways and waterways to eliminate hidden safety dangers, the province's transport authority said.
Top priorities have been given to strengthening the inspection and monitoring of the high-risk areas and highway sections where downpours hit frequently in the previous days, riversides, soft foundation sections, continuous steep downhill mountain roads, bridges and tunnels, sharp turns, steep and high slopes, according to a statement released by Guangdong provincial department of transport on Thursday.
Guangdong Highway Disaster: Authorities Probe Cause, Toll Now 48 - SixthTone
While the results of an investigation into the mishap are still pending, a geological expert in Meizhou stated that prolonged heavy rain or excessive water could lead to soil saturation and the sudden loss of strength, potentially contributing to the collapse.
An on-site investigation by The Paper found that continuous heavy rainfall throughout April triggered multiple small-scale landslides near where the incident occurred, occasionally blocking roads in surrounding villages. Maintenance personnel from an adjacent national highway reported a recent increase in their workload due to numerous minor collapses.
According to official data, rainfall in Guangdong between January and April was significantly above average, measuring 641.7 millimeters — or 63% higher than the average for the same period in previous years. During this period, 11 cities in the province broke historical records for rainfall in April, with Meizhou experiencing an average rainfall 3.5 times higher than usual.
【404文库】三联生活周刊|梅大高速塌方:没有抵达家乡的打工者 CDT runs a now deleted article by Sanlian Life Weekly on the highway collapse:
In an interview with our publication, several of the victims of this recent landslide accident worked at an auto parts market in Guangzhou. They usually don't have weekends off and can only return home during national holidays. For these villagers who are busy making a living and only return home two or three times a year, taking a shared ride home overnight during the May Day holiday is the most convenient and cost-effective way. Their original plan was to depart from the auto parts market on the evening of April 30th, expecting to arrive home by 3 a.m. on May 1st. "Leaving early to avoid traffic jams, and after arriving home, getting some sleep, they could spend time with their families the next day."
在本刊的采访中,此次塌方事故中的遇难者,有好几位都在广州一家汽配城工作,平日没有双休,只能在国家法定假日回家。对于这些忙碌于生存、一年只回两三次家的村民来讲,趁着五一假期连夜拼车回家是最方便也最划算的方式。他们原本的打算是,4月30日晚上从汽配城出发,预计5月1日凌晨3点就能到家, “早点出发不会堵车,到家之后睡一觉,第二天就能陪家里人”
CDT - Natural Gas Billing Spikes Fuel Consumer Backlash, Investigations in Sichuan and Beyond
In recent weeks, residents of the cities of Chongqing and Chengdu have been posting screenshots of their natural gas bills online and complaining of mysterious gas consumption spikes since the installation of new “smart” gas meters...
The topic quickly attracted nationwide attention. The Rednet Public Opinion Center, which tracks public opinion and online engagement, reported that as of April 16, the topic had racked up 219 million online interactions and 6.16 billion impressions on Chinese social media platforms. In Chongqing alone, as many as 26,000 residents complained to the local utility and local authorities about their gas bills. Chengdu’s local utility initially responded to consumer complaints by claiming that observations of rising gas prices were likely based on “mistaken perceptions.”
Amidst the glare of public controversy and an unusually high number of consumer complaints, local authorities in Chongqing opened an investigation into the billing increases. Less than a week later, at a press conference on April 19, Chongqing authorities announced that Che Dechen, Chongqing Gas Group’s general manager and Party secretary, had been removed from his post, and that Chongqing Gas and other local gas companies had indeed been overcharging their customers.
CDT - Words of the Week: “Weak Spot” (软肋, ruǎn lèi) The term “weak spot” recently surfaced in relation to a consumer backlash against sudden spikes in natural gas usage after new “smart” gas meters were installed in a number of cities. Consumers hit with exorbitant gas bills began posting their bills online, leading to an official investigation, the sacking of the head of Chongqing Gas Group, and the promise of refunds to affected consumers. A woman in Kunshan, Jiangsu province, who posted her gas bill online later received a threatening visit from the local police, demanding to know where her children attended school, where her husband worked, and other personal information about the family. The police later contacted her husband’s supervisor at work, in a further show of force. A WeChat article by current-affairs blogger Fan Dang discussed three tactics used by law enforcement to intimidate the woman into silence: (1) engaging in “threats and intimidation” (恐吓, kǒnghè), (2) leveraging her family as “weak spots” (软肋, ruǎnlèi), and (3) repressing freedom of speech under the guise of “fraud-prevention” (反诈, fǎn zhà).
Quote of the Day: “People Are Working ‘996’ Schedules for 12 Days Straight, in Exchange for a Five-Day Holiday Celebrating the Advent of an ‘Eight-Hour’ Workday” Today’s CDT Quote of the Day is a response to the recent tide of online public discussion about the new “adjusted leave” (调休, tiáoxiū) holiday schedule that has lengthened certain Chinese public holidays, while at the same time requiring many workers to toil on Saturdays or Sundays before and after each holiday to “make up for” the additional time off.
In China, Ruled by Men, Women Quietly Find a Powerful Voice - The New York Times Women in Shanghai gather in bars, salons and bookstores to reclaim their identities as the country’s leader calls for China to adopt a “childbearing culture.”
Fire Engulfs Historical University Building in China’s Henan Province - Caixin The auditorium, built in the 1930s, was undergoing renovations at the time of the incident, the post mentioned. The building is part of the original site of the Henan Preparatory School for Further Study in Europe and America, which was listed as a major cultural heritage site under national-level protection in 2006. It has a palatial structure blending Chinese and Western styles, with two levels of seating accommodating a total of 2,816 spectators. Students from Henan University told Caixin that they were only allowed to go into the auditorium when attending major events, adding that the building was frequently undergoing renovations.
China’s cheating threatens to wreck Paris Olympics, US anti-drugs chief says – POLITICO Chinese drug cheats and officials willing to turn a blind eye threaten to make the Paris 2024 Olympics a “train wreck,” the top U.S. anti-doping regulator said. Travis Tygart’s trenchant remarks cast another shadow over Chinese leader Xi Jinping’s ongoing visit to France where he is meeting President Emmanuel Macron, less than three months before the Olympics begin.
Energy, Environment, Science and Health
China set to collect samples from moon’s far side, a world first - The Washington Post China on Friday embarked on one of its most ambitious space missions yet: the launch of a probe to retrieve samples from the far side of the moon and bring them back to Earth within two months. If successful, it would be a first, for any country.
China’s Top Health Body Gets New Party Chief - Caixin The NHC’s official website now lists Lei Haichao, 56, as secretary of the Leading Party Members’ Group. He replaces Ma Xiaowei, who was previously both minister in charge of the commission and its party chief....Lei has had a decades-long career in the health system, of which around 10 years were spent in Beijing. During the Covid-19 pandemic, he headed working groups set up by the State Council’s Joint Prevention and Control Mechanism to manage the pandemic in Gansu and Anhui provinces as well as the Xinjiang Uygur autonomous region.
China Focus: Chinese scientists achieve significant advancement in quantum simulation technology-Xinhua A Chinese research team has realized the fractional quantum anomalous Hall state of photons for the first time by using an independently developed quantum experimental system, the University of Science and Technology of China (USTC) said on Monday. Previously, the fractional quantum anomalous Hall state, a bizarre quantum phenomenon, was mostly observed in electrons. But the USTC research team uses photons to simulate it. This breakthrough in quantum simulation technology is expected to propel advancements in quantum physics research and quantum computing, said Pan Jianwei, a renowned Chinese quantum physicist and an academician of the Chinese Academy of Sciences (CAS), at a press conference.
China moves to improve critical care medical services-Xinhua China's National Health Commission and other authorities on Monday issued a set of guidelines to improve the country's critical care medical services capacity. The guidelines set the goal of providing 15 intensive care hospital beds per 100,000 people by the end of 2025, including both comprehensive-use and discipline-specific ICU beds, as well as 10 hospital beds that can be converted for intensive care use per 100,000 people.
上百名清华校友校外聚餐食物中毒后,涉事餐厅已停业 海淀区市场监督管理局:正在配合区卫健委调查 | 每经网 Norovirus found spreading from the "Drunk Love" restaurant in Beijing after over 100 Tsinghua alums get sick after eating there around the late April 113th anniversary of Tsinghua's founding celebrations
China's health body probes hospital after surrogacy claims | Reuters Chongqing Angel Obstetrics and Gynaecology Hospital has been cooperating with illegal surrogacy agencies, a post on Chinese social media platform Weibo said on Sunday. Surrogate mothers would use forged ID cards to give birth in the hospital and forged birth certificates would be made after the babies were born, according to the post, made by a user called Shangguan Zhengyi, who describes himself as a volunteer fighting child trafficking.