The Port of Guangzhou, the world's fifth largest port, unveiled a three-year action plan (2024-26) to shore up the construction of a global shipping hub, according to media reports on Tuesday.
The plan, issued on Monday, called for the port to achieve throughput of 700 million tons and a container turnover of 27 million standard containers by 2026.
The port will also handle 800,000 standard containers under the sea-rail multimodal transportation, achieve a vehicle turnover of 1.6 million units and realize a total investment of 15 billion yuan ($2.1 billion) in port and fixed-asset investment by 2026, according to the plan.
The move is aimed at fostering a port-centered economic zone, nurturing new quality productive forces, further consolidating the port's status as a global shipping hub and a new high ground for deepening reforms and opening-up in the Guangdong-Hong Kong-Macao Greater Bay Area.
The new action plan is the fourth of its kind since such plans were introduced in 2015. As of the end of 2023, the Port of Guangzhou has seen its throughput increase to 675 million tons and container turnover to 25.41 million units. From 2021 to 2023, the port added a total of 42 new ocean shipping lines to bring the total number of container shipping lines to 268.
The introduction of new growth drivers such as auto vehicle transportation and sea-rail multimodal transport has carved out new areas of growth engines during recent years.
Reports by the World Bank indicate that in sub-Saharan Africa, about 600 million people, or approximately 53 percent of the region's population, live without access to electricity. Hundreds of millions more in urban cities have only limited or unreliable electricity. Furthermore, fossil fuels continue to dominate the energy supply and infrastructure in Africa. This is because, after gaining independence, most of these African countries developed energy infrastructures focused on non-renewable sources, despite the continent being rich in renewable/green energy resources. Thus, the false narrative of overcapacity from the Western-led countries to counter Beijing's "made in China" drive on new energy vehicles, photovoltaics and lithium batteries is also an attempt to hinder Africa's green energy production.
The Western-led overcapacity narrative is more about protecting their markets than focusing on global efforts to reduce carbon emissions. This comes at a time when fossil fuels continue to cause damage to our environment through carbon emissions.
However, keeping its promise of achieving carbon neutrality by 2060, China continues to make great progress in green energy production while exporting it to the world through the Belt and Road Initiative. According to the International Renewable Energy Agency, China continues to dominate the solar industry in terms of solar PV installed capacity.
This has influenced the growth of energy transitions to other countries and accelerated the reduction of the global carbon footprint.
In Africa, reports indicate that China has built and financed, from 2010 to 2020, approximately 96 projects to add to the continent's power generation capacity. These green energy projects are increasing electricity supply, improving energy security, reducing dependence on petroleum imports and mitigating the effects of climate change not only in Africa but across the world.
For instance, Kenya, in East Africa, is leading in the deployment of solar energy power generation. The 50 MW solar power station plant in Garissa County is currently one of the largest photovoltaic electricity plants in Africa. The project, financed by the Chinese government through concessional loans from the Export-Import Bank of China, was completed by the China Jiangxi Corporation for International Economic and Technical Co-operation.
The Garissa solar power plant hosts approximately 206,272 solar panels and occupies an estimated 210 acres. As a sustainable development project, the solar plant is estimated to address the power demand of 70,000 households (approximately 350,000 people, equivalent to about 50 percent of the population of Garissa) in Kenya. The solar plant has also increased the share of renewable energy on the grid to 93 percent, setting the stage for cheaper electricity in Kenya. Similarly, the Garissa solar power plant has reduced over 43,000 metric tons of carbon dioxide emissions annually, according to Kenya's Rural Electrification and Renewable Energy Corporation.
In South Africa, Power China signed a contract last year to build, operate and maintain a 123 MW solar plant that will provide electricity to at least 82,000 households when completed. This project is the first large-scale ground photovoltaic power plant signed by a Chinese enterprise in South Africa. It will also provide approximately 300 million kilowatt hours of clean electricity annually to the South African power grid and offer relief to residents from the almost two-decade-long electricity supply crisis, commonly known as load-shedding.
In Mali, Chinese company Sinohydro is also building a solar power plant in the village of Tiakadougou Dialakoro. The plant will have a peak capacity of 100 megawatts. In 2020, state-owned energy conglomerate China Energy Engineering Corp announced plans to develop 500 MW of solar generation capacity in Uganda in two phases by its China Gezhouba Group International Engineering subsidiary. In all these green projects, China continues to ensure that environmentally sustainable laws and policies are adhered to in the installations and generation of power through the PV/solar panels.
This shift to sustainable, clean energy solutions especially on solar energy, presents an enormous opportunity for Africa to address the challenges of the energy gap throughout the continent, climate change and to attain the 2030 agenda for Sustainable Development Goals on affordable and clean energy. China, unlike other traditional partners, is on the right path to helping Africa realize the continent's potential to generate at least 300 GW of clean energy by 2030.
Undeniably, the debate on so-called China's overcapacity holds no ground. Africa needs the much-produced solar panels to boost renewable energy in its grids, reduce carbon emissions and mitigate the devastating effects of climate change.
Several cities in China have opened their subway stations to personal advertising, exploring new business models and opportunities to increase revenue. This kind of innovation is expected to be a positive trend, meeting the public's personalized consumption needs and injecting vitality into the consumer market, experts said.
Subway advertising companies in Guangzhou, South China's Guangdong Province, Hangzhou, East China's Zhejiang Province, Chengdu,Southwest China's Sichuan Province, and Zhengzhou,Central China's Henan Province, have pioneered personal advertisements in subway stations. These personal advertisements included resume displays, matchmaking and calls for supporting.
Currently, subway stations offering personal advertisements are generally spread across China's busiest cities, aiming to explore public demand and seize opportunities to boost revenue.
This innovative measure encourages service-oriented consumption and offers a new revenue stream for subway advertisement companies, and likely to be expanded to other cities if public demand shows positive trends, Li Changan, a professor from the Academy of China Open Economy Studies of the University of International Business and Economics, told the Global Times on Sunday.
"We typically operate fan-supporting advertisements, with a particular focus on those related to sports events," Wei Bin, from, a Chengdu-based subway advertisement operator, told the Global Times on Sunday. "This product is relatively new, and currently, most people still view advertising primarily as a corporate activity," Wei said.
Since January, the Guangzhou Metro has introduced light boxes and electronic screens for personal advertisement, the advertisements published included birthday wishes, dating messages and job resumes, earning the nickname "large-scale creative showcase" from citizens,reported a China-based news platform XKB.com.
"The implementation of personal advertisement services in Guangzhou is a small-scale experiment this year, aimed at understanding consumer market demands and making informed decisions," a representative from a Guangzhou-based subway advertisement company, told the Global Times on Sunday.
Experts said that the future promotion of personal advertisements depends on public awareness of self-promotion. The large passenger volume has offered new and unique opportunities for advertisers.
A job seeker's advertisement at the bustling Zhujiang New Town Station in Guangzhou attracted more than 400 scans of his QR code within five days, including 50 companies across various industries, reported the Singaporean-based newspaper Lianhe Zaobao on Sunday.
Personal advertisements in the subway can also effectively promote personal entrepreneurial achievements, and personal entrepreneurs can use personal ads to promote their achievements, thereby boosting their income, Li said.
Currently, personal advertisements are still in their experimental stage in China, as the process is more complex than the public might expect.
"The relevant operators carry potential legal risks as well, mainly related to copyright and authorization issues such as font copyrights, image permissions, and graphic element copyrights. We are actively seeking solutions to these challenges, better supporting the consumer market," an insider surnamed Liu from the Zhengzhou Metro told the Global Times on Sunday.
Liu said that this initiative is being promoted across major cities in a bid to boost consumption and provide passengers with an interactive experience.
"We also aim to create a more relaxed and youthful subway atmosphere, highlighting the city's vibrancy and inclusivity, and enhancing its cultural appeal," Liu said.
Chinese President Xi Jinping has encouraged Hong Kong entrepreneurs to better integrate into national reform and development and contribute more to Chinese modernization by giving full play to their strengths.
Xi made the remarks in a reply letter to representatives of Hong Kong entrepreneurs whose origin can be traced back to Ningbo, east China's Zhejiang Province.
Beijing upgraded the emergency response for flooding to Level-III on Tuesday afternoon, and urged relevant departments to strengthen monitoring, respond to flood emergencies promptly, and report in a timely manner.
Beijing consecutively issued an orange alert for mountain flood disasters, an orange alert for geological disasters, a yellow alert for waterlogging, and a blue alert for floods, the first of its kind issued this year, on Tuesday. Authorities reminded the public to pay attention to the weather situation.
There is a high possibility of flash floods in the outlying Miyun and Pinggu districts of Beijing from 4 pm on Tuesday to 2 am on Wednesday. The public is advised to stay away from mountain torrents, suspend outdoor activities involving mountains and water, and take precautions, authorities said.
Meanwhile, there will be a risk of waterlogging in districts including Chaoyang, Fengtai, Tongzhou, Daxing and Shunyi during the two days.
As of 7 pm on Tuesday, the average precipitation in the city was 83.7 millimeters, with the urban area averaging 97.3 millimeters. There were 514 stations with precipitation of more than 50 millimeters, according to Beijing meteorological authorities.
China has a four-level emergency response system for flood control, with Level I being the highest level of response, and a four-level, color-coded weather warning system, with red indicating the most severe, followed by orange, yellow and blue.
All train services will continue to be suspended on Wednesday on the railway linking Huairou and Miyun districts, and the railway between Tongzhou and Miyun districts due to the impact of the heavy rainfall.
Heavy rainfall in Beijing has caused urban waterlogging in some regions, and emergency personnel are stepping up their efforts to carry out drainage clearance in the city.
The hashtag "heavy rainfall in Beijing" saw more than 4.38 billion views as of press time on Tuesday on Chinese-X like Sina Weibo, with many netizens calling for a safe trip with shared tips during the rain-affected day.
During a series of meetings of foreign ministers of Southeast and East Asian countries in Vientiane, Laos, over the past few days, Chinese Foreign Minister Wang Yi reiterated China's consistent stance on the South China Sea issue. Judging from the latest joint communique issued by the ASEAN Foreign Ministers' Meeting, which emphasizes the importance of peace and stability in the South China Sea, the differences among ASEAN countries are gradually narrowing, and consensus is gradually expanding, experts said, noting that this is particularly evident in the shared belief that the situation should not be allowed to escalate in a way that would affect regional security and relations with China.
China also sent strong signals to the US regarding the South China Sea issue and the Indo-Pacific Strategy, urging it to stop inciting trouble, causing disturbances, and undermining maritime stability. The US-led Indo-Pacific Strategy exacerbates security dilemmas and runs counter to the long-term vision of peace and prosperity in the region.
Some experts believe the US intends to provoke a proxy war and incite a new Cold War in the Asia-Pacific region, particularly in the South China Sea. ASEAN countries should resist actions that disrupt regional peace and provoke bloc confrontations to ensure peace and stability in the region.
Solemn stance
There is a full historical and legal basis for China to uphold territorial sovereignty and maritime rights and interests in the South China Sea, Wang said in elaborating on China's solemn stance on the South China Sea issue on Saturday.
With a view of safeguarding neighborhood friendliness and regional cooperation, China signed the Declaration on the Conduct of Parties in the South China Sea (DOC) with ASEAN countries and has consistently and effectively implemented it, Wang said, adding that China insists on managing differences properly through dialogue and consultation with all parties involved.
Ren'ai Jiao is China's inherent territory. The Philippines unilaterally changed the status quo by grounding its warship illegally at Ren'ai Jiao, and even attempted to build it into a permanent outpost, which severely violated Article 5 of the DOC and reneged on its commitments made to the Chinese side, the Chinese official said.
Wang also called on the Philippines to honor its commitments, not to break its promises and not to make more trouble.
In a joint communique of the 57 ASEAN Foreign Ministers' Meeting released on Saturday, ASEAN countries reaffirmed the need to enhance mutual trust and confidence, exercise self-restraint in the conduct of activities that would complicate or escalate disputes and affect peace and stability of the South China Sea, avoiding actions that may further complicate the situation.
"It is evident that the South China Sea issue has become a major topic at the ASEAN Foreign Ministers' Meeting. The positions of various parties, which were previously quite divergent, are now increasingly converging. While not completely aligned, there are emerging consensuses between the different sides," Chen Xiangmiao, director of the World Navy Research Center at the National Institute for South China Sea Studies, told the Global Times on Sunday.
Chen said the consensuses mainly refer to the agreement that differences should be managed through dialogue.
On Saturday, the Philippines sent a civilian ship to deliver daily necessities to its warship grounded at Ren'ai Jiao in accordance with a provisional arrangement reached with China. The China Coast Guard (CCG) supervised the operation throughout, said Gan Yu, a spokesperson for the CCG.
China and the Philippines reached an understanding on managing the situation at Ren'ai Jiao, according to the Chinese Foreign Ministry on July 22.
"ASEAN countries have been quite concerned about the continuous escalation of frictions recently, as peace and stability are important to ASEAN. The provisional arrangement reached between China and the Philippines has allowed ASEAN to relax a bit," Ding Duo, a deputy director of the Institute of Maritime Law and Policy at the China Institute for South China Sea Studies, told the Global Times on Sunday.
The US factor behind the Philippines has always been prominent, but this time the ASEAN series of meetings have highlighted ASEAN's own unity, independence, and centrality, Ding said.
Although the South China Sea issue is indeed a significant concern for ASEAN, it is not the top priority among ASEAN's key focus areas. "ASEAN does not wish for this issue to divert the attention of member states, ASEAN, and external major powers," the expert said.
With the increasing tensions at sea, it is becoming more apparent that more ASEAN countries are realizing that handling the situation as the Philippines and Vietnam have done, particularly the Philippines, could increase their own pressure due to China's firm stance, Chen noted.
"If ASEAN were to become divided, different countries would pressure other ASEAN members, potentially changing ASEAN's stance on the issue. Now I believe the role of ASEAN in the South China Sea issue is gradually becoming more prominent again," he said.
Also, Wang met Philippine Foreign Secretary Enrique Manalo on Friday during the meetings, warning the Philippine side over the deployment of a US intermediate missile system and calling on the Philippines to fulfill its commitments and refrain from changing its position on Ren'ai Jiao.
Commenting on the Philippines' resupply mission to Ren'ai Jiao on Saturday, some experts considered it as certain consensus reached by China and the Philippines. China hopes that the purpose of the dialogue is to manage differences, while the Philippines aims to continue its unilateral actions, experts said, noting that although the objectives of both sides are different, there is still room for dialogue.
"Recently, we can see that the Philippines has at least adhered to some of its commitments. However, the question remains whether it will continue to do so in the future, and I have my doubts about this," Chen said.
Due to the recent tense maritime situation, the Philippines has recognized China's resolve and significant pressure, leading it to make some compromises, Chen noted. "I believe this is not necessarily the genuine intention of the Philippine government, but rather a result of pressure from China, forcing it to accept this situation."
The ASEAN Foreign Ministers' Meeting also indicates that the Philippines is currently undergoing some internal changes, but these changes will likely require further compromises among different political interest groups within the country.
Proxy war
Besides warning the Philippines side over the US intermediate missile system deployment, Wang also urged the US side not to take any more action to fan the flames, stir up trouble, or undermine maritime stability during his meeting with US Secretary of State Anthony Blinken on Saturday.
Meanwhile, at the foreign ministers' meeting of the 31st ASEAN Regional Forum (ARF) in Vientiane on Saturday, Wang said the US-led Indo-Pacific strategy exacerbates security dilemmas and runs counter to the vision of long-term peace and prosperity in the region.
The Chinese top diplomat also urged alert and opposition to intervention in the region by the NATO, which he said is bound to trigger confrontation and escalate tensions.
The US insists to believe that China is a country capable of and willing to challenge the "rules-based international order," with the South China Sea being a testing ground for this. Therefore, the US is unlikely to make significant adjustments in its involvement in the South China Sea issue, Ding noted.
"Currently, it hopes for chaos in the South China Sea but does not want this chaos to spiral out of control and ultimately backfire on the US. As a result, the strategy of using the South China Sea issue to sow discord and pressuring the Philippines to provoke China will continue," the expert said.
"Of course, ASEAN countries remain cautious and vigilant about this and see the situation clearly. China will not stand by in face of US' actions either," Ding added.
From January to May this year, China's total import and export of intellectual properties amounted to 180 billion yuan ($24.8 billion), a year-on-year increase of 14.1 percent. Exports of intellectual property rights (IPRs) rose 17.7 percent compared to the previous year, higher than the growth rate of imports by 4.7 percentage points, the China National Intellectual Property Administration (CNIPA) said on Monday.
The CNIPA noted that IPRs are a strategic resource for national development and a core element of international competitiveness. In recent years, more high-value IPRs have been emerging in China.
As of June this year, the effective volume of China's domestic invention patents has reached 4.425 million pieces, and the proportion of invention patents whose right holders are enterprises has increased to 72.8 percent, with enterprises becoming more active innovators, according to the administration.
The number of high-value invention patents per 10,000 people reached 12.9, realizing the expected goal outlined in the 14th Five-Year Plan period (2021-25) ahead of schedule. The number of valid domestic registered trademarks reached 45.91 million, which is a new record high.
In terms of utilization, intellectual property has effectively empowered economic innovation and development. In the first half of this year, the number of patent transfer licenses by universities and research institutions increased by 22.2 percent year-on-year.
The value added of patent-intensive industries reached 15.3 trillion yuan, with the share of the annual GDP increasing to 12.7 percent.
Moreover, the number of foreign IPR applications and authorizations and validity in China, have all increased rapidly.
As of June this year, the number of valid foreign invention patents reached 919,000, representing a year-on-year increase of 3.9 percent, and the number of valid registered trademarks in China totaled 2.13 million, up 3.8 percent.
Data revealed that foreign enterprises attach great importance to the Chinese market and have full confidence in the country's intellectual property protection framework, according to the administration.
The CNIPA said that it will continue to improve the level of intellectual property protection, deepen international cooperation on intellectual property and follow the high-standard international economic and trade rules, in a bid to allow foreign-funded enterprises to better share the dividends of China's development and its mega market.
As the Chinese economy, along with the entire global economy, has been confronted with considerable challenges in recent years, some Western officials and media outlets have stepped up their long-standing smear campaign against the world's second-largest economy. They cherry-pick information and even distort facts to hype various specious narratives such as "Peak China," while turning a blind eye to China's considerable strengths and vast potential.
As part of the Global Times' multimedia project to set the record straight, the opinion page is publishing a series of in-depth interviews and signed articles with economists, experts and scholars from different countries and regions who share their views on the prospects of the Chinese economy and debunk the Western rhetoric. In the ninth article of the series, Global Times (GT) reporter Wang Wenwen talked with Barry Trembath (Trembath), a retired hydropower engineer living in Sydney who worked for the World Bank for 17 years and worked in 23 provinces and province level cities in China, about his understanding of high-quality development and the prospects of the Chinese economy.
GT: Last week, the Communist Party of China (CPC) convened the third plenary session of its 20th central committee in Beijing, which focused on further comprehensively deepening reform and promoting high-quality development. Based on your working experiences in China, what do you think of China's pursuit of high-quality development and its accomplishments in this regard?
Trembath: As I understand it, high-quality development is quite an advanced concept encompassing several objectives. It has several dimensions:
Development should be coordinated: The concept of coordinated development is development that addresses the various structural imbalances that occur during uncoordinated development or development which is driven purely by market forces. In China's situation, the primary imbalance is between the rural and urban economies. The income in China's most advanced economy, Shanghai, is several times that of communities in the western mountainous area of China. Early attempts at evening out this disparity focused on affirmative action to correct the imbalance. Coordinated development addresses the issue in the planning stages, taking advantage of China's planned economy.
The success of coordinated development can be measured by the ratio of GDP in rich provinces to poorer provinces. Another measure is the Gini coefficient, a measure of inequality between rich and poor. According to World Bank data, the Gini coefficient has been steadily declining. In 2008 it was 0.495. The latest data I have seen put it at 0.467 in2022. A similar improvement is evident when comparing GDP per head in richer to poorer provinces. China's tradition of collecting data makes it easy to make these comparisons.
Innovative development: This focuses on areas such as 5G, artificial intelligence, quantum computing, robotics advanced manufacturing, research, and other technologies, particularly development which originates from basic research rather than development from ideas generated by others. A measure of innovation is the number of patents issued by Chinese firms and individuals, research organizations and individuals. This is clearly on the rise with China being one of the leading countries in this regard. Considering the authors of papers in international journals including in the United States, Chinese names are very evident.
Green development: Green development is perhaps the only aspect which is self-explanatory. Early in China's modernization, this was characterized by air and water pollution and the destruction of natural resources, mining and coal fired power stations. Today, coal fired power stations are rare and if they are constructed at all they will be to the highest standard. In my time with the World Bank, my colleagues carried out a project called CRESP, (China Renewable Energy Scale Up Program) and it is gratifying to see that China is now the leader in several renewable electricity technologies such as wind and solar photovoltaic. They are also a leading manufacturer of equipment in these areas.
Open development: This dimension recognized the value of opening the economy to outside participants, which enables China to benefit from ideas that originated in other countries.
Shared development: This concept relates to the balanced development and the development of a middle class rather than excessive wealth in the hands of the few, recognizing that China's task now is to provide its entire population a reasonable standard of living, rather than the early task of eliminating poverty. Statements from China's leaders emphasize that this is now their primary focus.
GT: China is accelerating the development of new quality productive forces. What is your understanding of this term? How will it help advance China's high-quality development?
Trembath: As I understand it, this is focusing on the innovation objective, particularly in manufacturing where robotics are used extensively and less reliance is placed on low-cost labour or goods. Production efficiency is also gained by the improvements in infrastructure so that the cost of getting goods to market is reduced considerably.
GT: You worked for the World Bank in 23 Chinese provinces between 1989 and 2005. How would you compare China's development during that period and its development today?
Trembath: I have been back to China several times and development appears to have proceeded exponentially. The main differences I have noted are the tastes of middle-class people and infrastructure. During my time working in China, I found that only Shanghai was catering to tastes such as Western food, such as steak and table wines. When I last visited Chongqing, I found that the price of good quality wine in the shops was extremely high. The other notable difference is infrastructure. I have many funny stories about travelling in China in the early days. Air travel and road travel were the first to change and see improvements. Since then, they have been joined by the high-speed railway network, the envy of the world.
GT: What "Chinese characteristics" help China to realize its development?
Trembath: I consider the key characteristic to be the economy being planned rather than reliant only on market forces. In a pure market economy, many people are left behind. Western economies rely on "safety nets," the best of these is in Scandinavian countries. But they are imperfect. In Australia, I am constantly reading about people who "have fallen between the cracks." Yet, others are exploiting the system. An economy planned by educated professionals is better in many ways.
GT: In your article you said, "In the context where China is mainly responsible for Australia's wealth, it is time to celebrate their achievements rather than to continue to denigrate them." Many countries, including China and Western countries like the US, are economically interdependent. But why do they keep badmouthing China's economy and even calling for decoupling?
Trembath: This is the million-dollar question. There is no question that this is led by the United States, particularly the two recent presidents and the arms industry. It is joined by other allies including Australia. I believe that the US is losing its position as a world leader which it assumed after World War II. Of course, the arms manufacturers simply want to sell more arms. I am in no position to advise China. They should continue what they are doing and resist any temptation to be drawn into a fight. "It takes two to tango."
China should continue to cater to its natural allies, the firms operating in China. While the military industrial complex in the United States have many lobbyists in Congress, the firms who rely on manufacturing in China and trade with China also have many lobbyists.
The other thing is a dimension of openness. My experience is that many people change their opinion of China when they visit the country. Before then, they have an old-fashioned view drilled into them by their parents that communism is bad and democracy is good. China is increasing the rate of visa free entry and electronic visas. This is good. China has reached agreements with Singapore and Thailand on mutual visa exemption up to 30 days. Anything that can be done to dispel the negative image that communism has will be beneficial.
GT: How do you see the prospect of the Chinese economy?
Trembath: Despite the slowing down of the economy, I think the prospects are very good. A growth rate of about 5 percent is excellent for an economy which is the largest in the world using purchasing power parity (as used by the World Bank and the IMF). I have learned in investing not to go against the trend and the trend is rising.
The recently released communique from the third plenary session of the 20th Central Committee of the Communist Party of China (CPC) laid out an unequivocal commitment to further deepening reform comprehensively to advance Chinese modernization, which underscored the distinctive features of the system of socialism with Chinese characteristics.
The broad economic policy objectives articulated in the communique aptly embody the five major features of Chinese modernization - a huge population, common prosperity for all, coordination of material and cultural-ethical advancement, harmony between humanity and nature, and peaceful development, serving as a more detailed blueprint for the modernization goals outlined in the report to the 20th National Congress of the CPC.
Among the highlights of China's upcoming reform efforts included ensuring and enhancing the people's well-being during development, described in the communique as one of the major tasks linked to Chinese modernization, calling for doing everything within the country's capacity in this regard and refining the system to guarantee basic public services. This reflected the policies' emphasis on effectively addressing issues of utmost concern, direct relevance, and immediate importance to the people.
In this context, more definitive actions are expected to be centered on improving the income distribution system, the employment-first policy, and the social security system, further reforming the medical and healthcare systems, and improving the systems for facilitating population development and providing related services.
These objectives are of utmost significance, as they underscore the imperative need for substantial reform that will deliver immediate and tangible benefits to the population, which are central to China's modernization agenda.
The communique clarified the guiding principles and shed light on China's economic reform and development trajectory for the upcoming decade. It vowed to implement various measures for preventing and defusing risks in real estate, local government debt, small and medium financial institutions, and other key areas, in a bid to ensure both development and security.
This reflected the central government's awareness of these critical economic agendas and its resolve to address them, closely in line with the objectives outlined in the Central Economic Work Conference last year and this year's Government Work Report.
The reiteration of these goals also highlighted the central government's sustained commitment to key reform priorities, suggesting in-depth discussions on these issues during the third plenum and that specific follow-up measures are expected to be implemented in the near future.
The communique proposed numerous directional measures addressing major development issues to build a high-standard socialist market economy by 2035, thereby sketching a strategic blueprint for China's future economic reform. To achieve these goals, the government's top agenda will be to leverage the role of the market better, fostering a fairer and more dynamic market environment, and making resource allocation as efficient and productive as possible.
Moreover, China's commitment to deepening reform of the fiscal and taxation systems, further reforming the financial system, and improving mechanisms for implementing the coordinated regional development strategy is also highly significant for realizing China's long-term development goals.
Following the plenum, it is believed that an array of longstanding and unresolved major issues will be met with specific measures.
As the global community closely follows China's reform plans, the detailed blueprint in the communique shows China's commitment to the basic state policy of opening to the outside world and continuing to promote reform through opening-up, described as a defining feature of Chinese modernization.
There is reason to believe that China will continue to steadily expand institutional opening-up, deepen the foreign trade structural reform, and further reform the management systems for inward and outward investment. This will further reassure foreign businesses and investors, bolstering their confidence in the Chinese market.
Against this backdrop, international cooperation should focus on enhancing our opening-up capabilities - by both opening doors to the global arena and encouraging domestic enterprises to expand globally.
The communique also analyzed the current economic situation and the tasks we face, highlighting that we must remain firmly committed to accomplishing this year's economic and social development goals.
Given this emphasis, further stimulating measures are expected to be introduced in the second half of the year, particularly regarding the boost to domestic demand, as highlighted in the communique. Efforts to expand domestic consumption are anticipated to speed up to ensure this year's growth target. This is crucial for conveying a positive message to the international community.
The People's Bank of China (PBC) on Monday ramped up its monetary policy, including cuts in a key short-term rate and market-based benchmark lending rates, in the latest move to strengthen counter-cyclical adjustment and increase support for the real economy.
Analysts said the decisive move at a critical moment shows the bank's resolve to bolster sustained economic growth. The move also echoes the just-concluded third plenary session of the 20th Central Committee of the Communist Party of China (CPC), which stressed that the country must remain firmly committed to accomplishing the goals for this year's economic and social development.
Dismissing Western media outlets' smearing of the Chinese economy, analysts said that the Chinese authorities are moving in the right direction to achieve the GDP growth target of about 5 percent, since stepped-up fiscal and monetary policies will revive market confidence and boost effective demand.
Starting from Monday, the interest rate on seven-day reverse repos - a widely used liquidity injection tool - was cut from 1.8 percent to 1.7 percent, in a bid to strengthen counter-cyclical adjustments to better support the real economy, according to a statement on the central bank's website. It was the first reduction since August 2023.
The central bank held the reverse repo rate and medium-term lending facility rate intact since August to stabilize the yuan's exchange rate and prevent risks. However, given growing pressure on the economy, especially weak demand, counter-cyclical adjustments should be strengthened, Wen Bin, chief economist at China Minsheng Bank, told the Global Times on Monday.
"The central bank's decisive move reflects its determination to bolster economic growth. It also echoes the Chinese authorities' firm commitment to accomplishing the goals for this year's economic and social development, stressed during the just-concluded third plenary session," Wen said.
PBC Governor Pan Gongsheng said in June that the bank will continue to reform market-based interest rate adjustment mechanisms, for example, by using a single short-term rate as a main policy rate to guide markets.
Analysts said that lower interest rates will flow through the markets to the real economy, which will help reduce the real economy's comprehensive financing costs, revive social expectations and consolidate the economic recovery's momentum.
On Monday, the PBC cut the one-year loan prime rate (LPR) to 3.35 percent from 3.45 percent, while cutting the over-five-year LPR by 10 basis points to 3.85 percent, according to a separate statement on the PBC website.
These figures, released each month, serve as pricing reference rates for banks. "Monday's cut can save about 57 yuan in monthly payments, or about 21,000 yuan in total, for a new homebuyer with a 30-year mortgage of 1 million yuan," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Monday. The move will help stabilize the real estate sector.
"Following the third plenary session, policies to stabilize growth will be gradually rolled out, and as a result, China's economic recovery is expected to strengthen in the second half of the year," Yang said.
China's GDP grew 5 percent year-on-year in the first half of 2024 to about 61.68 trillion yuan ($8.48 trillion), data from the National Bureau of Statistics showed on July 15.
Analysts expressed confidence that China can achieve its economic growth targets in 2024, noting that the Chinese people have always pulled through difficult times and achieved new progress, and China's institutional advantages and the CPC's leadership will allow the country's economic miracle to continue.
Wan Zhe, an economist and professor at the Belt and Road School of Beijing Normal University, rebuked some Western media reports claiming the PBC's rate cuts ahead of the US Federal Reserve's reflect downward pressure on China's economy.
"Amid global economic uncertainties and imbalances, rates are being cut in many economies, for example, the EU and Canada. China is undergoing a transition from old to new growth drivers, which needs policy support to raise expectations and drive effective demand," Wan told the Global Times on Monday.
To achieve the around 5 percent GDP growth goal, more macro-policies are needed to stabilize growth in the second half, Xu Gao, chief economist at Bank of China International, told the Global Times on Monday.
Another more effective choice for stabilizing economic growth is setting up a fund of 1-2 trillion yuan to bail out real estate developers and get the industry back to normal, so as to stop the trend of contracting demand in the economic operation, according to Xu.
China will accelerate efforts to build a high standard market system, which is a major reform task for the country, Han Wenxiu, executive deputy director of the Office of the Central Committee for Financial and Economic Affairs, said at a press conference on Friday.
He said that efforts will be made to build a unified national market, including the development of a unified urban-rural construction land market, a nationwide integrated technology and data market, and a unified national electricity market.
A new round of reform and opening-up will build a sound institutional environment for all businesses and boost their confidence to expand investment and seek greater development, Wan said, noting that forceful reforms from the world's second-largest economy will inject stability into the world amid a sluggish economic recovery.
