He Lifeng on New Quality Productive Forces; Measures to promote private investment; PLA Air Force turns 76; US-China deal
From the perspective of practical logic, developing new quality productive forces is an inherent requirement for promoting high-quality development and gaining the strategic initiative in major-country competition. High-quality development is the primary task in building a modern socialist country in all respects. Domestically, to get rid of the traditional model of economic growth and the traditional path of productive force development, to build a modern industrial system that is independent and controllable and highly competitive, and to better meet the people’s aspirations for a better life, we must, at root, rely on developing new quality productive forces, and enhance the country’s economic strength, scientific and technological strength, and overall national strength. In essence, major-country competition is competition in productive forces, and the focus is on developing new quality productive forces. We must seize the moment and take proactive actions to accelerate the formation of more iconic, original, and disruptive scientific and technological and industrial innovation achievements, so as to gain the strategic initiative in major-country competition. - He Lifeng in People’s Daily
Summary of the today’s top items:
1. Several Measures on Further Promoting the Development of Private Investment - The State Council has unveiled thirteen targeted measures to leverage private investment. The policy package, announced Monday, opens previously state-dominated sectors—including railways, nuclear power, hydropower, and oil and gas pipelines—to meaningful private participation, with equity stakes potentially exceeding 10%. The guidelines encourage private investment in the low-altitude economy—commercial activities below 1,000 meters—and ensure equal treatment for private firms in commercial space ventures. I have posted a full translation of the measures here.
2. He Lifeng on New Quality Productive Forces - Vice Premier He Lifeng is the latest Politburo member to give his take on the “Recommendations of the Central Committee of the Communist Party of China on Formulating the 15th Five-Year Plan for National Economic and Social Development,” adopted at the recent Fourth Plenary Session of the 20th CPC Central Committee in the People’s Daily.
In the article “Adapting Measures to Local Conditions to Develop New Quality Productive Forces (Studying and Implementing the Spirit of the Fourth Plenary Session of the 20th CPC Central Committee) 因地制宜发展新质生产力 （学习贯彻党的二十届四中全会精神）”, translated in full here, He reiterates that intensifying great-power rivalry is a contest over “productive forces”, and argues that Beijing must accelerate the development of what it calls “new quality productive forces” to secure the strategic upper hand. I have posted a full translation of the measures here.
He said the party’s newly adopted proposal for the 15th Five-Year Plan makes developing such capabilities — in a way tailored to regional conditions — a central task. The goal, he wrote, is to shift China away from its traditional growth model towards a modern, innovation-led industrial system that is “independent and controllable” and able to meet rising domestic living standards.
He linked this explicitly to geopolitical competition, saying that “at the end of the day, major-power competition is competition in productive forces,” and called for “iconic, original and disruptive” breakthroughs in science, technology and industry. That requires both faster diffusion of new technologies and ensuring the gains are shared more broadly to sustain political support. One highlight:
From the perspective of practical logic, developing new quality productive forces is an inherent requirement for promoting high-quality development and gaining the strategic initiative in major-country competition. High-quality development is the primary task in building a modern socialist country in all respects. Domestically, to get rid of the traditional model of economic growth and the traditional path of productive force development, to build a modern industrial system that is independent and controllable and highly competitive, and to better meet the people’s aspirations for a better life, we must, at root, rely on developing new quality productive forces, and enhance the country’s economic strength, scientific and technological strength, and overall national strength. In essence, major-country competition is competition in productive forces, and the focus is on developing new quality productive forces. We must seize the moment and take proactive actions to accelerate the formation of more iconic, original, and disruptive scientific and technological and industrial innovation achievements, so as to gain the strategic initiative in major-country competition.
3. PLA Daily commentary series on fighting corruption - There is a new PLA Daily commentary series on fighting corruption. The first installment in the “series of talks on continuously deepening political rectification and advancing the work style and anti-corruption drive in depth 持续深化政治整训、纵深推进正风反腐系列谈” is “Stricter and higher than local standards, leading the entire party 严于高于地方，走在全党前列”. I have posted a full translation here. Some highlights:
The serious violations of Party discipline and state laws by He Weidong, Miao Hua and others have been dealt with strictly…
If the military becomes corrupt, the gun barrel will rust, it will degenerate and change color, and it will be impossible to speak of consolidating the Party’s long-term governing position or of safeguarding national sovereignty, security, and development interests. For our army, the anti-corruption struggle is a major political struggle that we cannot afford to lose and must not lose. It concerns the long-term stability of the Party and the country and the enduring red character of our socialist cause…
The military exists to fight, and it must be able to fight and to win. Holding the military to higher standards and stricter requirements in the anti-corruption struggle is determined by the military’s core function. Our army has won the trust of the Party and the people precisely because it has always been able to fight and to win. In the past, our Party and our army used the “Yan’an style” to defeat the “Xi’an style.” In a certain sense, we defeated the foulness of the reactionaries with the fresh air of integrity, and we defeated the Kuomintang’s corruption with our own honesty. Today, we must soberly realize that corruption is the “No. 1 killer” of combat effectiveness. To tolerate corruption in the military is to tolerate defeat in war; what it brings the state and the people can only be disaster. If we do not clear out these corrupt elements before the guns go off, and if we do not eliminate the problems and hidden dangers that affect readiness for war, then strengthening the military and winning battles will be empty talk. For our army to be able to win wars, it must first win the battle against corruption
4. PLA Air Force turns 76, shows off stealth drone - The PLA Air Force marked the 76th anniversary of its founding with a slick short film - “Dreams Far Away - that shows off its modernized capabilities, perhaps the most notable being the first public footage of a mixed formation of J-16 and J-20 fighters flying alongside a GJ-11 stealth drone.
The video also highlights the air force’s long-range missile capabilities. CCTV’s “Yuyuan Tantian” describes that scene:
The scene in the film where the J-20 opens its main weapons bay and launches a missile actually showcases the PLA Air Force’s beyond-visual-range (BVR) air combat capability. BVR air combat comes down to three kinds of “firsts”: “detect first, fire first, destroy first.” If we look back to the early days of the People’s Air Force, during the War to Resist U.S. Aggression and Aid Korea, our predecessors, with fearless combat spirit, fought the enemy in close aerial combat, shocking the then-arrogant U.S. Air Force. At firing distances of just a few hundred meters, pilots had to visually search for targets in the air, sometimes even closing to within 200 meters of the enemy aircraft to open fire, which meant a high chance of collision or being hit by debris from the enemy aircraft that was shot down. What was being tested back then was spirit, courage, and skill. But today, we already have the capability to conduct BVR air combat from hundreds of kilometers away, to strike straight at the enemy’s vital point—“one sword to the throat.” Not only is our “swordsmanship” superb, we now have a “longer sword” as well.
5. US-China deal implementation - Both sides have taken steps to implement the deal blessed in South Korea by Xi and Trump, but there may still be some confusion over the US statement that “China will issue general licenses valid for exports of rare earths, gallium, germanium, antimony, and graphite for the benefit of U.S. end users and their suppliers around the world. The general license means the de facto removal of controls China imposed since 2023.” There is no way the PRC will allow those to flow to the US military industrial complex, and if the Trump Administration believes that is what Xi agreed to then that could be a problem.
The Wall Street Journal reported Wednesday that the PRC will establish a “validated end-user” system, based on the US system, to ensure that rare earths, rare earth magnets and critical minerals do not flow to firms linked to the US military. It will be interesting if that system requires US companies to allow PRC representatives to inspect their facilities before approving exports, as the US does. Why wouldn’t they expect, and demand, reciprocity?
6. Shenzhou 20 crew still stuck in space - There is still no timeline for the return of Shenzhou 20 crew after the collision with a small object, according to a statement from the China Manned Space Agency, but perhaps the return will be soon as “the landing site is currently conducting integrated drills for the Shenzhou-20 crew’s return. All work is progressing steadily and in an orderly manner as planned”.