Chinese mainland Olympians who have accomplished historic sporting achievements at the Paris Olympic Games are set to visit Hong Kong and Macao Thursday through Monday, allowing local residents to share in the honor and joy while inspiring national pride and patriotism.
A total of 65 Chinese Olympians, including 59 gold medalists from the Paris Games, will take part in a series of exchange activities and demonstrate their skills to the public, according to the Hong Kong Special Administrative Region (HKSAR) government.
The Chinese national team finished second in the overall medal table with 40 golds, 27 silvers and 24 bronzes, achieving its best ever results at an overseas Olympics. Swimmer Pan Zhanle, who won two golds in Paris and broke the world record in the men's 100m freestyle, said that the visit is a great opportunity for exchanges.
It's been a tradition for the mainland delegation to visit Hong Kong and Macao after an Olympic Games. The delegation's first visit to Hong Kong dates back to the Seoul 1988 Olympics.
The visits foster a sense of national pride and unity, reinforcing the bonds between the mainland and its special administrative regions, Liu Yu, a Beijing-based sports commentator, told the Global Times.
It provides an opportunity for residents of Hong Kong and Macao to celebrate and share in the success of the athletes, enhancing local enthusiasm for sports and national pride. It also allows athletes to engage with the public directly, fostering a sense of connection and community, Liu noted.
The delegation, which includes table tennis legend Ma Long and diving star Quan Hongchan, will attend a gala show, visit the Hong Kong Sports Institute and give sports demonstrations at Queen Elizabeth Stadium and the Victoria Park Swimming Pool. Over 5,000 tickets for the public events sold out in about half an hour last week.
A survey revealed that over 80 percent of Hong Kong residents feel proud of the performance of both the mainland and the Hong Kong delegations in Paris.
US technology company International Business Machines Corp (IBM) reportedly cut off intranet access for Chinese employees in research and development (R&D) and testing positions without prior notice, news media outlet jiemian.com reported on Saturday citing sources.
A lab technician confirmed that the employees were working regular hours with no warning or "signals" before the access was shut down, and at the time a number of technological staff workers were still working overtime.
The Chinese employees have been removed from product groups on communication software and cannot log into the company intranet via VPN, though email remains accessible, according to the jiemian.com report.
The Global Times sought a comment from IBM China, but received no reply as of press time.
During an AI-themed forum held by IBM on Thursday in Nanjing, East China's Jiangsu Province, Hans Dekkers, general manager of IBM Asia Pacific region, said that the company has been operating in the Chinese market for four decades, where it has built up valuable experience, talent, and trust. An article on IBM's official website stated the company's commitment to further exploring opportunities in China as it moves into the AI era.
Chen Xudong, chairman and general manager of IBM Great China Group, said at the forum that they would continue to focus on tapping into key major clients, breaking into new markets, and expanding channels in China to help Chinese firms bridge the generative AI process from experimentation to large-scale application.
According to IBM's earnings report for the second quarter 2024, its business revenue hit $15.8 billion during the period with a year-on-year increase of 2 percent. Software revenue rose by 7 percent, while consulting revenue fell by 1 percent.
China’s Ministry of State Security (MSS) on Friday disclosed a case involving overseas intelligence agencies attempting to recruit Chinese youths, and the authorities reminded the public to be vigilant of individuals who may be disguised as “kind-hearted” persons around teenagers.
These individuals from overseas intelligence agencies often disguise themselves as "enthusiastic,” or "considerate” around teenagers, subtly influencing teenager targets, attempting to achieve their own purposes and steal state secrets, endangering national security, said the MSS.
In the case disclosed by the MSS, Xiaowei was an orphan from the mountains in the south of China, who performed well in both academics and character. “Teacher L” appeared after Xiaowei achieved the highest score in the county and entered the best high school in the area, offering to sponsor him.
The so-called teacher promised to provide Xiaowei with financial support until he graduates from university.
Despite moving abroad, the so-called teacher would occasionally call Xiaowei and ask him to take part in the public servant exams and assign him tasks such as field surveys and social information gathering for extra pay. Xiaowei saw it as an opportunity to earn money while studying and continued to complete the tasks as requested, according to the ministry.
After graduating from university, Xiaowei passed the public servant exams and got his job. He shared the good news with “Teacher L,” who started asking for sensitive information under the guise of research and report writing.
Xiaowei initially provided some public data out of gratitude. But “Teacher L” requested more sensitive information, including classified documents, Xiaowei became suspicious and refused the request. Eventually Xiaowei decided to report “Teacher L” to the national security authorities.
After investigation, "Teacher L" was found to be an overseas spy who targeted talented individuals from poor backgrounds like Xiaowei, encouraging them to pursue careers in government agencies, research institutes, or the military to gather sensitive information and engage in espionage activities detrimental to national security, according to the ministry.
China’s Counter-Espionage Law stipulates that all citizens and organizations discovering acts of espionage shall promptly report them to the state security organs.
While Chinese couriers rush to deliver the packages after the June 18 mid-year shopping festival, one from Beijing has also set his sights on the Paris 2024 Olympics.
Luan Yushuai is one of the Chinese runners who have qualified for the Mass Participation Marathon, a first in Olympic history, which allows the public to run in two races on the same course as the Olympic marathon.
"For an ordinary person to participate in the Olympics, it is something unimaginable. I feel that this might be a once-in-a-lifetime opportunity for me, so I will definitely prepare well and strive to achieve my best in Paris," Luan told the Global Times during a recent interview.
A total of 40,048 runners from around the world will participate in the two historic races.
The first covers the marathon distance of 42.195 kilometers while the other is a 10-kilometer run.
Each will feature 20,024 participants. Both will be gender-equal races, with the same number of berths allocated to women as to men.
The lucky draw
With over 800,000 people worldwide reportedly eyeing a spot for the race, winning a berth is no easy task.
According to the scoring system released by the organizing committee, eligible applicants needed to accumulate 100,000 points by the end of 2023 to be able to participate in a draw that would award berths to the lucky few. Entrants are required to take part in running, walking, or cycling to earn the points.
Although the 39-year-old felt the odds were slim, he still wanted to give it his all. After registering, he trained hard while amassing the requisite points.
The Mass Participation event, which will take place on August 10, will depart from the Hôtel de Ville in central Paris, taking runners through the city's iconic landmarks and monuments to Versailles, before returning to the capital and crossing the finish line on the Esplanade des Invalides. The route alternates between urban landscapes, parks, and woodland.
Recalling the moment when he was selected, Luan said that it was on New Year's Eve 2023 when he had brought his parents from their hometown to Beijing for a family reunion dinner.
"Suddenly, I received an English message on my phone. I quickly translated it online and found my name on it, saying 'Congratulations, you have won the lucky draw.' I was so excited that I shouted out loud," he said. A fast runner
Being a versatile young man, marathon amateur Luan had tried several different professions like a waitering and a construction worker before finally landing on his current career as a deliveryman. This profession became a deciding factor in Luan's marathon career.
He told the Global Times that at the very beginning of his career in 2015, he was given tasks to deliver parcels for people who live in old residential areas. In Beijing, old communities are often not equipped with elevators, so, climbing stairs has become Luan's daily routine.
"I run fast and I am hardworking. I was one of the swiftest kids when I was at school, and now I am one of the swiftest deliverymen," Luan remarked. He also said that he can deliver 10 more parcels than other staffers daily, and once he delivered a record 600 parcels per day.
The young man's diligence and talent were soon discovered by his company, which later selected him as a representative to participate in the 2017 Beijing Marathon.
Although he finished the whole competition repertoire with an average record of over 4 hours, his running experience was like a seed being planted in his heart. He said that despite the failure, the marathon itself has given him the confidence.
"I have never run a marathon before, so my first experience was extremely exhausting and uncomfortable. But I gritted my teeth and persevered to the finish line," Luan noted.
A shared inspiration
Luan's 2017 experience ignited his aspiration for marathon running. He said that to date, he has participated in many marathons. His personal best was accomplished at the 2020 Nanjing Marathon, where he finished the race in 2 hours, 25 minutes, and 55 seconds. It has never been an easy journey for Luan to improve his best time from 4 hours to 2 hours.
His self-training schedule has been strict. In the daytime, he discharges his duties as a deliveryman and he can only pursue his marathon passion after work. He usually runs about 400 kilometers per month and normally takes one day off every week. Maintaining such a training course was "difficult," he said.
Some of his colleagues even said he was "foolish," yet those words never dampened Luan's passion for the sport. In order to boost the strength of his muscles, Luan tied sandbags to both of his legs for two years.
His marathon story is now a source of inspiration to the public. He said that the marathon has made him feel powerful, especially after his stories were shared with school children.
"I was quite shocked, because I never imagined my stories could bring such positive energy to others. The fact that many people were motivated by me has touched me too. I will keep running to inspire more people," Luan said.
"In fact, it's not so much about how fast I can run, but rather that I stand on the Olympic marathon track as a Chinese courier," he said.
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.
Editor's Note: The rise of urban clusters is undoubtedly a significant impetus propelling China's economic miracle. In a recent interview with the Global Times (GT) reporters Bai Yunyi and Wang Yi, Alain Bertaud (Bertaud), a former chief urban planner at the World Bank and author of "Order Without Design: How Markets Shape Cities," discussed the rise of Chinese urban clusters and the influence on China's economic growth.
Bertrand brings a wealth of research experiences and unique insights to his analysis of the exceptional performance of major urban clusters like the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area city clusters. He highlights the significance of scale, agglomeration effect, and innovation capability in the clusters, which underscores the great potential for enhancing China's productivity and lifting Chinese people's broad livelihood.
GT:Have you visited China in recent years? What impressions do you have of the development of Chinese cities and urban clusters?
Bertaud: Unfortunately, I have not had the opportunity to visit China recently. My last trip to China was six years ago. I have tried to follow the land development by observing satellite imagery.
I began working in China during my first visit in 1983 and continued to return to the country until 2018. This experience has enabled me to witness China's development over a period of 35 years. The development of Chinese cities has been absolutely astonishing to me, especially in terms of infrastructure.
What impressed me the most are the large urban clusters in the Yangtze River Delta and the Pearl River Delta - now the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), which has unparalleled size. The San Francisco Bay Area, including Silicon Valley and surrounding areas, is home to approximately 7 million people. The GBA now has a population of around 90 million people, equivalent to the entire population of Germany. The region is increasingly connected by rapid rail. Twenty years ago, it would take about two or three hours to travel from Hong Kong to Guangzhou by train. However, based on the data I have now, the journey only takes about 40 minutes.
In my view, there are still some progresses to be made in transport in the GBA. If this can be achieved, the GBA would be by far the most productive and innovative area in the world. What we have learned in urban development is that if you manage to have a very large labor market, the productivity of this area is much higher than the productivity of smaller cities, even though running a large city is more complex than running a small city.
I'm very encouraged to see that the local governments in China encourage innovation in different type of transport, not only speedy trains, but also self-driving cars. I think that this experimentation is absolutely necessary. In Europe and the US, cities are often hesitant to embrace change, leading to the implementation of regulations that could slow down change there. It appears that the Chinese are facing change much more eagerly and with more imagination.
GT: You once mentioned that China's unprecedentedly huge urban clusters have the potential to usher in a new era of improved productivity and creativity. Could you elaborate on the perspective? Compared to urban clusters in other parts of the world, what advantages do Chinese urban clusters have in terms of scale, economic benefits from concentration, and innovation capability?
Bertaud: I see two advantages.
First, size. I discussed before that China's GBA is larger in size compared to other clusters. If you look at productivity, innovation, size is important.
Second, land use. Many manufacturing enterprises in the San Francisco Bay Area have relocated due to high land prices. The area now primarily consists of research labs, office buildings, and other brain work-related industries. Manufacturing has been outsourced to other parts of the US or even to other countries.
In China, industrial areas continue to remain in clusters like the Yangtze River Delta and the GBA. I believe this creates an advantage because research is important, but researchers must also be exposed to manufacturing in order to improve it. The key is not just inventing new things, but making those inventions work for the common good and commercializing them. I believe that the land use diversity in Chinese clusters is an advantage in achieving this.
GT:In 2017, you said in an interview that the most successful cities are those who embrace rapid urbanization rather than those that try to slow this process down. At that time, you mentioned China's ability to rapidly develop urban infrastructure. In your view, what enabled China to achieve fast urbanization? Is there anything in this process that other developing countries can learn?
Bertaud: I think there are cultural reasons that are difficult to replicate. When I was working in China, I noticed that China has a very clear and efficient decision-making system. This is a major advantage of China, but I am not sure if it's possible to transmit it to other countries.
In many other countries, at a local level of a city, there is a fragmentation of decision-making, which slows down decision-making. For instance, in New York, there has been an effort to implement congestion pricing to reduce traffic in the city center. However, the decision-making process is fragmented, resulting in no progress being made.
GT: You discussed in your book the complementary relationship between infrastructure planning and market mechanisms. What changes do you think have occurred in China's urban planning since the reform and opening-up compared to before?
Bertaud: On the one hand, China has been able to develop top-down infrastructure, which must be designed in advance. On the other hand, the infrastructure has increasingly responded to market demands. I believe this is a significant strength of China. In the West, we sometimes face challenges with our top-down infrastructure due to fragmented decision-making.
Another advantage of China is that the boundaries around cities are very large. There are rural counties that are part of the municipality, which I believe is a significant advantage compared to the fragmentation we sometimes see in the West.
GT:A few years ago, The Economist reported that China is striving to transform itself into a nation composed of 19 major regions based on large urban clusters. At that time, you stated that if integrated properly, China's urban clusters could achieve productivity levels never seen before, "comparable to the gap between the UK and the rest of the world during the Industrial Revolution." Six years later, any change to your prior prediction?
Bertaud: I think that because of the demography now, I will slightly modify my comment 10 years ago. In my opinion, even if some of China's major city clusters succeed, that would be enough to drive the economy of China.
I think that eventually the best city will attract more people. People vote with their feet. The most creative people, more entrepreneurs will be attracted there. I think that's the way probably the Chinese clusters succeed.
GT:In your opinion, what challenges do China's large urban clusters still face, and what can be done in the future?
Bertaud: I think they are on the right track. I will concentrate on the transport and especially the last five-kilometer of transport. From the high-speed railway station to people's final destinations, whether it is a residential area or an office, there is still room for further improvement in the level of transportation and comfort.
The second is housing. Try to increase the supply of housing by encouraging competition, rather than relying solely on large companies. Smaller developers are typically more in tune with local demand and may be more likely to identify opportunities on smaller parcels of undeveloped land. In a city, people of all income levels are essential and should have access to affordable housing.
