China-Vietnam Deals - Taiwan Drills - Finance Minister's Press Conference & Seeking Confidence in Economy - Supporting People-to-People Diplomacy via CPAFFC

Here are the key reports and articles that I found noteworthy from the People’s Daily’s edition on Monday, October 14, 2024.

Page 1: Let’s begin with a report on Li Qiang’s meeting with Vietnam’s Prime Minister Pham Minh Chinh.

“Li Qiang pointed out that China and Vietnam, both developing countries, are at critical stages of their modernization efforts. China firmly supports Vietnam in steadily advancing on the socialist path that suits its national conditions. China is willing to strengthen the alignment of development strategies with Vietnam, fully leverage the role of the China-Vietnam Bilateral Cooperation Steering Committee mechanism, and effectively implement cooperation plans under BRI and the ‘Two Corridors and One Belt’ framework. Both sides should deepen cooperation in connectivity, trade, investment, tourism, healthcare, disaster prevention and mitigation, and expand cooperation in local currency settlement. They should also explore new areas of cooperation in emerging industries such as the digital economy and green development, continuously upgrading and enhancing cooperation across various fields. Both sides should take next year's 75th anniversary of diplomatic relations and the ‘China-Vietnam Year of Cultural Exchange’ as an opportunity to further deepen cultural exchanges, enhance mutual understanding and ties between the peoples of both countries, especially the younger generations, ensuring that the friendship between China and Vietnam is passed down through the generations. Both sides should adhere to friendly consultations, properly manage differences, and expand maritime cooperation. China is also willing to strengthen coordination with Vietnam on multilateral platforms such as the United Nations and APEC, promoting global governance toward a more just and equitable direction, safeguarding the interests of developing countries, and leading the international community in building a shared future for humanity.” 李强指出，中越同为发展中国家，都处在现代化建设的关键时期，中方坚定支持越南走稳走好符合本国国情的社会主义道路，愿同越方加强发展战略对接，充分发挥中越双边合作指导委员会机制作用，落实好共建“一带一路”倡议和“两廊一圈”框架对接合作规划，深化互联互通、贸易投资以及旅游、医疗、防灾减灾等领域合作，扩大本币结算合作，拓展数字经济、绿色发展等新兴产业合作，不断推动各领域合作提质升级。双方要以明年中越建交75周年和“中越人文交流年”为契机，进一步深化人文交流，增进两国人民特别是年轻一代的相互了解和感情，让中越友好事业代代传承。双方要坚持友好协商，妥善处理分歧，扩大海上合作。中方愿同越方加强在联合国、亚太经合组织等多边平台的协调配合，推动全球治理朝着更加公正合理的方向发展，维护广大发展中国家利益，引领国际社会一道构建人类命运共同体.

As per the report, Pham Minh Chinh said that ties with China were “the top priority and strategic choice” of the CPV and the government. He added that Vietnam “adheres to the one-China principle, supports China’s development and growth, and supports the series of global initiatives proposed by President Xi Jinping.” 中国是汇集越南所有对外政策优先方向的唯一国家，发展对华关系是越南党和政府的头等优先和战略选择。越方恪守一个中国原则，支持中国发展壮大，支持习近平主席提出的系列全球倡议.

On maritime issues, he said that “both sides should implement the high-level consensus between the two parties and countries, adhere to friendly consultations to properly manage differences, and jointly maintain maritime peace and stability.” 双方要落实两党两国高层共识，坚持通过友好协商妥善管控分歧，共同维护海上和平稳定.

The report informs that the two sides inked deals in the fields of connectivity, agricultural products, customs, finance, human resources, media, education, etc.

Do also check out this VNA report. It has a lot more detail, including the full list of documents signed. It says that Li talked about how China “always considers Vietnam a priority in its neighborhood diplomacy policy.” Also,

• The two sides “committed to enhancing mechanisms for exchanges and cooperation, particularly in diplomacy, national defense and public security; promoting practical cooperation in key areas, increasing people-to-people exchanges, and reinforcing the solid social foundation for the development of the Vietnam-China relations.”

• “The two leaders pledged to maintain close collaboration and mutual support within multilateral mechanisms and forums; and cooperate effectively in land border management.”

• “The Vietnamese PM suggested expediting the necessary procedures to open a Vietnamese Consulate General in Chongqing as soon as possible, further advancing trade cooperation and expanding market access for high-quality Vietnamese agricultural products, including citrus fruits, pomelo, avocado, custard apple, water apple, traditional herbal medicines of plant origin, buffalo, beef, pork, livestock and poultry products, and farm-raised ornate spiny lobster. He also requested support for establishing a Vietnamese Trade Promotion Office in Haikou this year, and more offices in Chengdu (Sichuan) and Nanjing (Jiangsu) in the near future.”

• “He called for improved customs clearance efficiency at border gates, advancing "soft connectivity" through smart customs”...

• Li Qiang “proposed joint efforts to put in place large-scale, high-tech projects in the sectors where China has strength and Vietnam has demand, which are seen as symbols of the bilateral ties. They cover such areas as renewable energy, supporting industries, electric vehicles, international financial centers, free trade zones, smart cities, digital economy, green economy, and circular economy.”

• Vietnamese PM “suggested the two sides step up the sharing of data on meteorology, hydrology, and cross-border water resources, while working together to ensure sustainable management and use of the Mekong-Lancang River water resources”.

• “The two sides exchanged sincere and straightforward views on maritime issues, and agreed to continue strictly implement the high-level common perceptions and the agreement on basic principles guiding the resolution of maritime issues between Vietnam and China, appropriately managing differences, and actively seeking mutually-acceptable, fundamental, and long-term solutions in line with the agreement on basic principles guiding the resolution of maritime issues and international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS). They agreed to avoid actions that could complicate the situation and to maintain stability at sea together, while effectively implementing negotiation mechanisms on maritime issues, and actively promoting cooperation in less sensitive areas as well as search and rescue operations at sea.”

• This is also worth noting: “Chinh called on both sides to respect each other’s legitimate rights and interests, resolve disputes and disagreements through peaceful means in accordance with international law, particularly the UNCLOS 1982; properly address issues related to fishermen and fishing vessels in a manner that aligns with the friendly relations between the two countries, ensuring that the East Sea issue does not impact the bilateral political trust and damage the sentiments and confidence of the two countries’ people.”

On Page 2, there are reports on Li’s meeting with entrepreneurs and business leaders in Vietnam and Vietnamese National Assembly Chairman Tran Thanh Man. 

Xinhua reports that Li told business leaders

“China and Vietnam are traditional socialist friendly neighbors, and their respective development is an important opportunity for each other, he said, adding that economic and trade cooperation has always been a highlight of China-Vietnam cooperation and an important source of driving force for advancing bilateral ties. Looking ahead, Li said, there is still more space for expansion and greater potential to be tapped in the further alignment of the development strategies of the two countries, stronger connectivity, the release of complementary advantages, as well as economic and trade cooperation. The two countries share the same social system, strong political mutual trust, geographical proximity and affinity among their people, and enjoy a profound friendship of ‘comrades and brothers’, which has laid a solid foundation for bilateral cooperation. The Chinese premier called on the entrepreneurs to more actively engage in national development strategies, and make full use of multilateral and bilateral economic and trade cooperation agreements and policy dividends such as the Regional Comprehensive Economic Partnership and the Version 3.0 China-ASEAN Free Trade Area. Li proposed that the entrepreneurs should jointly promote the integrated development of industries, deepen mutual integration of supply and demand, and build stable and smooth cross-border industrial and supply chains. He also urged the two countries' entrepreneurs to pool innovation and creativity, and strengthen the whole-chain innovation cooperation between industry, academia, research and utilization, with a particular focus on clean energy, biomedicine and artificial intelligence, so as to jointly foster and strengthen new driving forces for the development of the two countries.”

Xinhua’s report on the meeting with Tran Thanh Man has Li saying:

“China is willing to enhance exchanges and cooperation with Vietnam’s legislative bodies, strengthen coordination and cooperation in multilateral fields, and provide solid support for promoting each other’s socialist construction, Li said. It is hoped that the legislatures of the two countries will strongly support practical cooperation in various fields, focus more on innovation, provide legal guarantees for China and Vietnam to strengthen cooperation in emerging industries such as digital economy, new energy and 5G, and jointly cultivate and strengthen new drivers of development, said Li. At the same time, the two countries' legislatures will actively provide public guidance to enhance mutual understanding and goodwill between the two peoples, especially among the young people, and continue to consolidate the social foundation for bilateral cooperation, he added.”

Next, there’s a report informing that Sam Hou Fai has been elected as the chief executive designate of Macau. He won the election on Sunday with 394 votes in favour out of 398 valid ballots.

Xinhua reports that the State Council Hong Kong and Macao Affairs Office said that “the successfully concluded election is ‘significant’ for implementing the principle of ‘patriots administering Macao’ and advancing the successful practice of ‘one country, two systems’ with Macao characteristics.”

The report adds that an article on the State Council Hong Kong and Macao Affairs Office’s website said that “Sam had received broad public support for his deep affection and sense of responsibility toward Macao and the country, willingness to collaborate with various social groups and sectors, and commitment to promoting socio-economic development and improving the well-being of Macao residents. Sam, who previously served as president of Macao's Court of Final Appeal, has handled a number of major cases and effectively safeguarded national security and the constitutional order of the Macao SAR, the article said. The Macao society has confidence in Sam to safeguard both the overall interests of the country and the fundamental interests of Macao, and ensure the steady and sustained practice of "one country, two systems" with Macao characteristics, it added. The article also said Sam demonstrates his capability of adapting to changes and seeking transformation, and the will to seize opportunities and pursue reform.”

There is also a front page commentary on Sam’s election. It talks about the election process, saying that “all sectors of Macau society and the general public actively participated and exercised their democratic rights in accordance with the law. The entire election process was open, fair, just, legal, stable and orderly…” 

The article says that Sam was able to garner support because of six planks:

• Being patriotic and loving Macau, having unwavering dedication

• Being skilled at uniting people and pooling wisdom

• Being focused on development, seeking truth and being pragmatic

• Being people-oriented, with a strong emphasis on livelihood

• Safeguarding national security, maintaining stability

• Being pioneering and innovative and courageous in breaking through

爱国爱澳、坚定热诚；善于团结、群策群力；聚焦发展、求真务实；以民为本、重视民生；坚守国安、维护稳定；开拓创新、勇敢突破……在这场选举中，我们可以清楚看到，澳门社会对岑浩辉的认同、支持和希望主要集中在这六个方面。

The article then basically doubles down on the significance of the one country, two systems framework. It says that the election “fully reflects the Macau society’s heartfelt support for ‘one country, two systems’...” It adds that “practice has fully proven that ‘one country, two systems’ is a great initiative under socialism with Chinese characteristics and the best institutional arrangement for maintaining long-term prosperity and stability after the return of Hong Kong and Macau to the motherland, and it must be adhered to for a long time’.” 实践充分证明，“一国两制”是中国特色社会主义的伟大创举，是香港、澳门回归祖国后保持长期繁荣稳定的最佳制度安排，必须长期坚持。

Further, the piece reiterates that “the destinies of Hong Kong, Macau, and the mainland have always been closely linked, and national development has always been the strongest foundation for the development of Hong Kong and Macau.”香港、澳门与祖国内地的命运始终紧密相连，国家发展始终是香港、澳门发展的最大依托.

Finally, there’s a long, long article under the byline Jin Sheping 金社平, discussing economic policy shifts and basically calling for greater confidence. The article begins by making the case that China’s long-term fundamentals remain strong. It says that through this year, “overall economic performance has been stable with steady progress; however, some new situations and problems have also emerged”. 实现“十四五”规划目标任务的关键一年，经济运行总体平稳、稳中有进，同时，也出现一些新的情况和问题。

The piece begins talking about the September 26 Politburo meeting, which discussed the economy. The meeting called to “effectively enhance the sense of responsibility and urgency of doing a good job in economic work” and “strive to complete the goals and tasks of economic and social development throughout the year.” 9月26日，习近平总书记主持中共中央政治局会议。会议分析研究当前经济形势，部署下一步经济工作，强调“切实增强做好经济工作的责任感和紧迫感”“努力完成全年经济社会发展目标任务”.

Section one then says that in order to strive to achieve the year’s goals, “we must strengthen our confidence in overcoming difficulties”. Then we get some data points from the holidays:

• The trade-in program for home appliances during the National Day holiday led to the sales of eight categories of home appliances under the program reaching 17.835 billion yuan.

• During the seven-day National Day holiday, domestic tourist numbers and total tourist spending increased by 10.2% and 7.9% respectively compared to the same period in 2019.

The article then says:

“Currently, all regions and departments are conscientiously implementing the spirit of General Secretary Xi Jinping’s important speech and the decisions and arrangements of the Party Central Committee. A series of measures to support stable economic growth and high-quality development have been introduced in quick succession, effectively guiding societal expectations and strengthening confidence in China’s economy.” 当前，各地区各部门认真贯彻落实习近平总书记重要讲话精神和党中央决策部署，一系列支持经济稳定增长和高质量发展的措施密集出台，有效引导社会预期，增强人们对中国经济的信心.

Then we get some sprinkling of positive information about the real estate sector and consumption vouchers and subsidies by local governments. For instance:

“On October 1st, the online signing area of newly constructed commercial housing in Shandong reached 93,800 square meters, a year-on-year increase of 46.8%. From October 1st to noon on October 3rd, compared to the same period last year, Beijing saw a 92.5% increase in new home viewings and a doubling of purchase intentions, while second-hand home viewings increased by 104.1%. Some properties in Guangzhou received over 150 visits per day, a 200% increase compared to normal times.” 10月1日，山东新建商品房网签面积9.38万平方米，同比上涨46.8%。10月1日至3日中午，北京新房带看量较去年同期增加92.5%、认购量提高2倍，二手房带看量较去年同期增加104.1%。广州部分楼盘日到访量超过150批，较平时增加200%.

This next macro assessment is worth reading:

“On one hand, the external environment has become increasingly complex, severe, and uncertain, and the adverse effects of changes in the external environment on China's economy have increased. The ‘global economy is stagnant’, said the IMF in its World Economic Outlook report, updated in July. Currently, major world economies are experiencing weak growth momentum and heavy debt burdens. Many have recently implemented interest rate cuts, and international market volatility has increased. Global trade protectionism has intensified, and uncertainty and instability have increased. These factors will have an adverse impact on China through trade, investment, finance and other channels. In particular, it is important to note that some external forces are trying to contain, blockade, and suppress China, deliberately attempting to hinder the historical process of building a socialist modern power in an all-round way and realising the great rejuvenation of the Chinese nation. Rhetoric about ‘decoupling and breaking supply chains’ and ‘small yards with high walls’ has become louder, reflecting the increasing complexity, severity, and uncertainty of the external environment China faces. On the other hand, while China’s economy continues to recover and improve, downward pressure has increased. Since the third quarter, key economic indicators such as industrial production, investment, and consumption have fluctuated. Some industries are experiencing ‘involution-style’ competition, and some enterprises are struggling to adapt to optimization, upgrading, or transformation. In some cases, increased production has not led to increased revenue or profits, some companies face significant operational difficulties, and in some sectors hidden risks remain relatively high.” 一方面，外部环境更趋复杂严峻和不确定，外部环境变化给中国经济带来的不利影响增多。“世界经济裹足不前”，国际货币基金组织7月发布的《世界经济展望报告》更新内容这样评价世界经济走势。当前，世界主要经济体增长动能弱、债务负担重，近期普遍实施降息，国际市场波动明显，全球贸易保护加剧，不确定不稳定因素增多，这些都会通过贸易、投资、金融等渠道对我国产生不利影响。特别要看到，一些外部势力对我国进行遏制、围堵、打压，处心积虑阻滞我们全面建成社会主义现代化强国、实现中华民族伟大复兴的历史进程。“脱钩断链”“小院高墙”甚嚣尘上，我国发展面临的外部环境复杂性、严峻性、不确定性明显上升。另一方面，我国经济在延续回升向好态势的同时，经济下行压力有所加大，三季度以来工业、投资消费等主要经济指标出现波动，有些行业“内卷式”竞争，有些企业还不适应优化升级或转型发展变化，有的增产不增收不增利，有的生产经营比较困难，一些领域风险隐患仍然较大.

The article then says that given all this, where does confidence come from? The answer is that first, “confidence comes from a deep understanding of (China’s) development advantages.”

“Since the new era, under the scientific guidance of Xi Jinping Thought on Economy, China’s economic development has formed significant advantages. Deeply understanding, utilizing, consolidating, and developing these important advantages is not only a key support for the long-term positive fundamentals of the Chinese economy but also an essential foundation for solving the challenges faced in economic development. China’s development benefits from five strategic advantages: the strong leadership of the Communist Party of China, the notable advantages of the socialist system with Chinese characteristics, the solid foundation accumulated through sustained rapid development, a long-term stable social environment, and the spiritual strength of self-confidence and self-reliance. Additionally, China possesses the institutional advantage of a socialist market economy, the demand advantages of a super-large-scale market, the supply advantages of a complete supporting industrial system, and the talent advantages of a large number of high-quality workers and entrepreneurs, which have laid a solid foundation for responding to risks and challenges…History and reality have repeatedly proven that the creation and continuation of China’s economic miracle is inseparable from the strong leadership of the Communist Party of China and the fundamental guarantee of the socialist system with Chinese characteristics. On the path forward, as long as we steadfastly uphold the Party’s comprehensive leadership and give full play to the role of the centralized and unified leadership of the Party Central Committee, the giant ship of China’s economy will surely ride the wind and waves and sail towards a brighter future.” 新时代以来，在习近平经济思想科学指引下，我国经济发展已形成重要优势。深刻把握并利用好、巩固好、发展好这些重要优势，既是我国经济基本面长期向好的重要支撑，也是解决我国经济发展面临问题的重要基础。我国发展具有“五个战略性有利条件”：有中国共产党的坚强领导、有中国特色社会主义制度的显著优势、有持续快速发展积累的坚实基础、有长期稳定的社会环境、有自信自强的精神力量。同时，我国具有社会主义市场经济的体制优势、超大规模市场的需求优势、产业体系配套完整的供给优势、大量高素质劳动者和企业家的人才优势，为应对风险挑战奠定了坚实基础。犹记国际金融危机持续影响，中国经济发展“三期叠加”，在党中央科学决策下，我们实事求是进行改革调整，果断转向高质量发展；犹记美方肆意加征中国输美商品关税，中美经贸摩擦升级，在党中央坚强领导下，我们勇开顶风船、无惧回头浪，敢于斗争、善于斗争，坚定不移深化改革开放，推动中国经济迈上新台阶……历史和现实一再证明，中国经济奇迹的产生和延续，离不开中国共产党的坚强领导和中国特色社会主义制度的根本保障。前进道路上，只要始终不渝坚持党的全面领导，发挥党中央集中统一领导的定海神针作用，中国经济巨轮一定能乘风破浪，驶向更加光明的未来.

Second, confidence comes from “a deep understanding of the development trend.” Under this point, we basically get selective economic data citation, along with the argument that China’s “innovation power and development vitality are surging”, with factors supporting the development of new quality productive and high-quality development surging. 

This paragraph is useful with quotes from Xi. The reason I point this out is because it is indicative of deep anxieties. Think of this as a pep-talk by a coach at the back of a terrible inning to pick up the team.

“What determines the prospects of economic development is never how many difficulties there are, but how we view difficulties, how we resolve to solve them, and how we deal with them. Only by looking at the long-term and trends from a development perspective can we overcome difficulties more effectively. ‘China’s development prospects are bright, and we have the confidence and assurance to say so’. ‘The world today is undergoing unprecedented changes not seen in a century, but time and momentum are on our side. This is where our determination and confidence lie.’ ‘When have there not been difficulties? We tackle them one by one, year after year, and the Chinese nation has been doing this for over 5,000 years. Overcoming challenges is crucial to boosting confidence.’ General Secretary Xi Jinping’s profound expositions contain a profound ‘grand historical perspective’. Based on the ‘grand historical perspective’, we can more deeply understand that the ‘long-term positive fundamentals of the Chinese economy have not changed and will not change’.” 决定经济发展前景的，从来不是困难有多少，而是我们看待困难的眼光、解决困难的决心、应对困难的办法。用发展的眼光看长远、看趋势，才能让我们更加有效地克服困难。“中国发展前景是光明的，我们有这个底气和信心。”“当今世界正经历百年未有之大变局，但时与势在我们一边，这是我们定力和底气所在，也是我们的决心和信心所在。”“什么时候没有困难？一个一个过，年年过、年年好，中华民族5000多年来都是这样。爬坡过坎，关键是提振信心。”习近平总书记的深刻论述，蕴含着深邃的“大历史观”。立足“大历史观”，我们就能更加深刻地理解中国经济“长期向好的基本面没有变也不会变”。

The second section calls to accurately grasp the focus of policy measures. First the section talks about investments in water conservancy projects. It says that from January to August this year, national investment in water conservancy construction reached 801.94 billion yuan, an increase of 10.7% compared to the high level of the same period last year, setting a new record. The number of water conservancy projects implemented and the number of jobs created both exceeded those of the same period last year, making significant contributions to promoting sustained economic growth and stable development. Among these, more than 7,800 water conservancy construction projects were arranged with newly issued national bonds, with investments of 303.77 billion yuan completed. 今年1至8月，全国水利建设完成投资8019.4亿元，在去年同期较高水平基础上增长10.7%，再创新高，实施水利工程数量、吸纳就业人数等均超去年同期，为推动经济持续增长和稳定发展作出重要贡献。其中，增发国债安排水利建设项目7800多个，已完成投资3037.7亿元.

“As the external environment becomes more complex and severe, the role of domestic demand in ensuring China’s stable economic growth has become more prominent.  700 billion yuan in central budget investment has already been allocated, and all of the 700 billion yuan designated for ‘two major’ constructions from the 1 trillion yuan of ultra long-term special government bonds has been fully allocated to projects…Since the beginning of this year, the proactive fiscal policy has been moderately strengthened and improved in quality and efficiency. The role of government investment has been leveraged and efforts have been intensified to lay the foundation, benefit the long-term, make up for shortcomings, and adjust the structure. High-quality investment is becoming an important driving force for promoting high-quality development. Additionally, the 300 billion yuan in national bond funds supporting the ‘two new’ initiatives has been fully allocated, providing stronger support for expanding domestic demand. 在外部环境更趋复杂严峻的形势下，内需对中国经济稳定增长作用更加凸显。7000亿元中央预算内投资已经下达，1万亿元超长期特别国债中用于“两重”建设的7000亿元全部下达到项目……今年以来，积极的财政政策适度加力、提质增效，发挥好政府投资的作用，在打基础、利长远、补短板、调结构上加大力度，高质量投资正成为推动高质量发展的重要先导力量。同时，支持“两新”工作的3000亿元国债资金已全面下达，将为扩大内需提供更有力支撑.

“To strive to complete the annual economic and social development goals and tasks, we must increase the intensity of countercyclical policy adjustments, strengthen the overall coordination and systematic integration of macroeconomic policies such as fiscal and tax policy, monetary and financial policy, investment and consumption, and income distribution; strengthen the coordinated innovation of policy tools, grasp the timing and effectiveness of policy implementation, amplify the policy combination effect, and enhance the consistency of macroeconomic policy orientation.” 努力完成全年经济社会发展目标任务，要加大政策逆周期调节力度，加强财政税收、货币金融、投资消费、收入分配等宏观政策的统筹协调和系统集成，强化政策工具协同创新，把握好政策实施的时度效，放大政策组合效应，增强宏观政策取向一致性.

The article then signals support for the private economy, by talking about the release of the draft Private Economy Promotion Law, which is open for public comments until November 8. The article also mentions the issuance of living allowances to people. It also references the Guidelines of the CPC Central Committee and the State Council on Implementing the Employment First Strategy. It says that this is the first time since the new era that the central government has issued a guiding document to promote employment. Also, in order to achieve the goals for the year, the article calls to maintain “the bottom line of people’s livelihood, strengthen assistance and support for low-income people, ensure the supply and price stability of important materials such as food and water, electricity, gas and heat, and effectively ensure food and agricultural production to ensure national food security.”

The final section of the article calls on everyone to take on responsibilities and act. The goal is to break through the “stubborn diseases of formalism and bureaucratism.” 

“Reform the defects in thinking, eliminate chronic problems in work style, and promote a spirit of practical action. In the current situation, to truly enhance the sense of responsibility and urgency in doing economic work well, we must resolutely overcome simplistic thinking, inertial thinking, and responsibility-avoiding thinking, and use ideological breakthroughs to promote practical action and responsibility-taking. Resolutely break the negative mindset of ‘just getting by without striving for excellence’ in doing work, and discard the selfish attitude of ‘not taking risks, taking up fewer tasks’; resolutely eliminate the dependency on ‘first consulting the old almanacs (sort of like resorting to past experiences)’ when encountering issues, and discard the lax approach of ‘lying flat and watching, being conservative and procrastinating’; resolutely break the stability-seeking mentality of ‘first thinking about avoiding responsibility, not thinking about taking responsibility’ when doing things, and discard the mistaken understanding that ‘doing more leads to more mistakes, doing less leads to fewer mistakes, doing nothing leads to no mistakes’... Great winds and waves are precisely the touchstones for testing responsibility and commitment. Setting good benchmarks for selecting and appointing people, and encouraging cadres to better assume responsibilities, can cultivate firm doers and pragmatists for the construction of Chinese-style modernization, achieve success through overcoming difficulties, open up paths in daring to forge ahead, and develop a bright future for China’s economy through unremitting struggle.” 革思想之弊、除作风顽疾、兴实干之风。当前形势下，切实增强做好经济工作的责任感和紧迫感，就要坚决克服简单思维、惯性思维、免责思维，以思想破冰促实干担当。坚决破除干事“只求过得去、不求过得硬”的消极思想，摒弃“不担风险、少担任务”的利己主义；坚决破除遇事“先翻老皇历”的依赖思想，摒弃“躺平观望、保守拖延”的散漫做派；坚决破除做事“先想免责、不想担责”的求稳心态，摒弃“多干多错、少干少错、不干不错”的错误认识……大风大浪，正是检验责任担当的试金石。树好选人用人风向标，推动干部更好担当作为，才能为中国式现代化建设培养出坚定的行动派、实干家，在攻坚克难中成就事业，在敢闯敢干中开辟通途，在不懈奋斗中开拓中国经济的光明未来.

While on the economy, I am still catching up with the developments of the past 10 days or so. Anyway, Caixin reports:

China’s finance ministry on Saturday announced policies for local governments to buy land and housing from property developers, and promised intensive support to help localities with their hidden debts… ‘Countercyclical’ fiscal measures are ‘by no means’ limited to those announced Saturday, Finance Minister Lan Foan said at a press conference on the same day, adding that policymakers are studying other policy tools. For example, the central government has a ‘relatively large’ amount of room to increase its deficit and issue more debt, he noted…Tools including local government special-purpose bonds (SPBs), special funds and tax policies will be used in tandem to arrest the slide in the real estate market, Lan said. The central government will allow local authorities to tap their SPB proceeds, mainly used for funding government projects, to buy back undeveloped land from developers, according to Liao Min, a vice finance minister. In some regions, SPB proceeds can also be used to increase the reserve of land for sale, Liao said.”

On local government debts, the report adds:

“At the press briefing, Lan said that the central government had allowed local governments to use bond quotas of 1.2 trillion yuan ($170 billion) and more than 2.2 trillion yuan in 2024 and 2023, respectively, to resolve hidden debt and pay overdue arrears to businesses. He added that the central government will step up support for local governments to deal with their debts by expanding the quota for swapping off-the-books for on-the-books debt. This will be a one-time expansion of a ‘relatively large scale,’ the minister said, noting that it can free up more energy and fiscal resources for local governments to develop their economies and improve the welfare of residents. ‘This forthcoming policy will be the most significant measure introduced in recent years to support (hidden) debt resolution,’ Lan said, noting that it will be detailed after going through legal procedures. The Ministry of Finance (MOF) also pledged to issue special treasury bonds to help major state-owned commercial banks supplement their core capital. The program is already in the works, Liao said. A cross-department work group, including the MOF, is waiting for banks to hand in their capital injection plans, he said, noting that the lenders will publish their plans according to rules for listed companies.”

Page 2: There is a confirmation that Li will be heading to Pakistan for the SCO Council of Heads of Government meeting. Also, there is a brief report informing that Li Xiaoxin, who is the deputy chief of the Organisation Department, led a delegation to Russia from October 9 to 12. 

Page 3: There’s a report with data on China’s shipbuilding industry. It says:

“From January to September, the shipbuilding completion volume was 36.34 million deadweight tons, an increase of 18.2% year-on-year; new orders were 87.11 million deadweight tons, an increase of 51.9% year-on-year; and as of the end of September, the backlog of orders was 193.30 million deadweight tons, an increase of 44.3% year-on-year. From January to September, China’s three major shipbuilding indicators accounted for 55.1%, 74.7% and 61.4% of the global total in terms of deadweight tons.”

Page 8: There is an article by Yang Wanming, Party Secretary and President of the Chinese People’s Association for Friendship with Foreign Countries (CPAFFC). He is writing in the context of Xi’s speech recently marking the 70th anniversary of the CPAFFC. 

In that speech, Xi had said:

“People are the creators of history, and building a community with a shared future for mankind is the future of the people of all countries in the world. China is willing to strengthen friendly exchanges with friends from all countries, give full play to the unique role of people-to-people diplomacy, and work together to build a community with a shared future for mankind.” 

He had then made three points:

• First, we should build a broad consensus on promoting the building of a community with a shared future for mankind in the spirit of ‘shared responsibility as dwellers of the same planet’…China is willing to work with all countries in the world to promote the common values ​​of peace, development, fairness, justice, democracy and freedom, advocate an equal and orderly multi-polar world and an inclusive economic globalization that benefits all, and make the planet Earth a peaceful, friendly and harmonious home for all”. 一是要以“同球共济”的精神，凝聚推动构建人类命运共同体的广泛共识。各国人民生活在同一个地球家园，是一家人，应该团结应对变乱交织的国际形势和层出不穷的全球性挑战。中国古人讲“同舟共济”，现在国际社会则需要“同球共济”。中方始终坚信，人类发展进步的大方向不会改变，世界历史曲折前进的大逻辑不会改变，国际社会命运与共的大趋势不会改变。中国愿同世界各国一道，弘扬和平、发展、公平、正义、民主、自由的全人类共同价值，凝聚不同民族、不同信仰、不同文化、不同地域人民的共识，倡导平等有序的世界多极化、普惠包容的经济全球化，把我们共同生活的地球建设成一个和平、和睦、和谐的大家庭.

• Second, we must gather a strong force to promote the building of a community with a shared future for mankind through the concept of win-win cooperation. The Communist Party of China is a party that seeks happiness for the Chinese people and rejuvenation for the Chinese nation. It is also a party that seeks progress for mankind and world harmony. I proposed the building of a community with a shared future for mankind and the GDI, GSI and GCI, all in order to promote the building of a better world and create a better life for people of all countries. The practice of building a community with a shared future for mankind for more than 10 years has brought many inspirations. One of the important ones is that only through win-win cooperation can we accomplish things, do good things, and do great things. China does not pursue self-centered modernization, and welcomes more foreign friends to actively participate in China's modernization process. The country is committed to providing new opportunities for global development with its achievements in modernization, and promoting a global modernization that features peaceful development, mutually beneficial cooperation and common prosperity to better benefit people of all countries.” 二是要以合作共赢的理念，汇聚推动构建人类命运共同体的强大合力。中国共产党是为中国人民谋幸福、为中华民族谋复兴的党，也是为人类谋进步、为世界谋大同的党。我提出构建人类命运共同体和全球发展倡议、全球安全倡议、全球文明倡议等，就是为了推动建设一个更加美好的世界，为各国人民创造更加美好的生活。构建人类命运共同体理念提出10多年来的实践带来很多启示，其中重要的一条就是，只有合作共赢才能办成事、办好事、办大事。中方不追求独善其身的现代化，欢迎更多外国朋友积极参与中国式现代化进程。中方愿本着合作共赢理念，不断以中国式现代化新成就为世界发展提供新机遇，同各方一道，努力推动实现和平发展、互利合作、共同繁荣的世界现代化，更好造福各国人民.

• Third, with an open and inclusive mindset, we should embrace all civilizations to build a community with a shared future for humanity…Harmony while maintaining diversity is the law governing the occurrence and development of all things, as well as the principle behind the transmission and development of human civilization. Mutual exchange and learning are essential requirements for the advancement of civilization and serve as important driving forces for the progress of human civilization, as well as for world peace and development. Chinese civilization is an open system formed in constant exchange and mutual learning with other civilizations, and remains ever new through its inclusiveness. The Chinese nation is an open and inclusive nation, and the Chinese people are kind and friendly people. China is willing to work with all parties to practice the GCI, promote a view of civilization that emphasizes equality, mutual learning, dialogue, and inclusiveness, enhance understanding and deepen friendship through sincere communication, transcend civilizational barriers through civilizational exchanges, transcend civilizational conflicts through civilizational mutual learning, and promote the world to develop in the direction of a community with a shared future. 三是要以开放包容的胸襟，绘就推动构建人类命运共同体的文明画卷。“万物并育而不相害，道并行而不相悖。”和而不同是一切事物发生发展的规律，也是人类文明传播和发展的规律。交流互鉴是文明发展的本质要求，也是推动人类文明进步和世界和平和发展的重要动力。中华文明是在同其他文明不断交流互鉴中形成的开放体系，在兼收并蓄中历久弥新。中华民族是开放包容的民族，中国人民是善良友好的人民。中方愿同各方一道，践行全球文明倡议，弘扬平等、互鉴、对话、包容的文明观，通过真诚沟通，增进了解、加深友谊，以文明交流超越文明隔阂、文明互鉴超越文明冲突，推动世界朝着命运共同体的方向发展.

In the article today, Yang writes that more than 300 international friends from nearly 100 countries attended the CPAFFC anniversary event. 

He writes that over the years the association has established “friendly exchange and cooperation relationships with over 400 organizations and institutions in more than 150 countries, coordinated and promoted the establishment of over 3,000 pairs of friendly city (province/state) relationships between China and more than 140 countries, and built a ‘circle of friends’ and ‘network of partners’ spanning five continents…” 七十载坚守初心，践行为国交友。全国对外友协坚持不忘老朋友、广交新朋友，同150多个国家的400多个组织和机构建立了友好交流合作关系，协调推动中国与140多个国家建立了3000多对友好城市（省州）关系，建立起跨越五大洲的“朋友圈”和“伙伴网”，努力以“民相亲”助力“国之交”，为增进中外人民友谊、促进国家关系发展而不懈奋斗.

It has coordinated and mobilised resources from international friendly cities, multinational corporations, friendly organizations, and various other sectors. It has promoted the establishment of diverse mechanisms for local exchanges between China and foreign countries and vigorously advanced pragmatic cooperation in fields such as trade, education, technology, culture, ecology, health, poverty alleviation, and human resources training, etc… 七十载春华秋实，推动务实合作。全国对外友协坚持以人民为中心，协调调动国际友城、跨国公司、友好组织等各方面资源，推动建立各类中外地方和民间交流机制，大力推进经贸、教育、科技、文化、生态、卫生、减贫、人力资源培训等领域务实合作，为国际抗疫合作积极贡献民间力量，努力为让发展成果更好惠及各国人民而不懈奋斗.

Yang concludes with a few points for work going forward:

• We will work with friends from various countries to build more bridges for people-to-people exchanges, give full play to the role of friendly organisations as communication channels, continue to consolidate old friends and make new friends, enhance mutual understanding and friendship between the people of China and people of other countries, and lay a solid foundation for social public opinion of friendship between China and foreign countries.

• We will work with friends from all over the world to build more bridges of pragmatic cooperation, give full play to the role of international sister cities as cooperation platforms, mobilize resources and strengths in various fields at home and abroad, constantly innovate cooperation methods, expand cooperation fields, and enhance cooperation effectiveness, so that local and sister cities cooperation can better benefit people of all countries.

• We will work with friends from all countries to build more bridges for cultural exchanges, give full play to the role of cultural exchanges as a bond to link hearts and enhance friendship, carry out wide-ranging, in-depth and diversified cultural exchanges and mutual learning activities between China and foreign countries, inspiring mutual resonance of hearts, and promoting the ‘heart-to-heart communication, emotional bonding, and strength gathering’ of the Chinese and foreign people.

• We will work with friends from various countries to build more bridges for youth friendship, fully leveraging the fundamental and long-term role of youth exchanges in the development of relations between countries, inviting more foreign youth to come to China, encouraging more Chinese youth to go out into the world, and striving to cultivate successors for the cause of friendship between Chinese and foreign people.

——前进路上，我们将与各国朋友一道，搭建更多民间交往的桥梁，充分发挥友好组织的交流渠道作用，持续巩固老朋友、结交新朋友，增进中国人民与各国人民之间的相互了解与友谊，厚植中外友好的社会民意基础。——前进路上，我们将与各国朋友一道，搭建更多务实合作的桥梁，充分发挥国际友城的合作平台作用，调动中外各领域资源和力量，不断创新合作方式、拓展合作领域、提升合作实效，使地方和友城合作更好惠及各国人民。——前进路上，我们将与各国朋友一道，搭建更多人文交流的桥梁，充分发挥文化交流沟通心灵、增进友谊的纽带作用，开展宽领域、深层次、多元化的中外文化交流互鉴活动，激发彼此心灵共鸣，促进中外人民“心相通、情相融、力相聚”。——前进路上，我们将与各国朋友一道，搭建更多青少年友好的桥梁，充分发挥青少年交流对于国家间关系发展的基础性和长远性作用，邀请更多外国青少年走进中国，鼓励更多中国青少年走向世界，努力培养中外人民友好事业的接班人.

Taiwan Drills & Tensions

Former Taiwan president Tsai ing-wen is in Europe. She will be visiting the Czech Republic and Brussels. She was also expected to travel to London, but that seems to have been cancelled “due to the British Foreign Office, which worried that such a visit could compromise Foreign Secretary David Lammy’s first official visit to China next week.”

Meanwhile, Xinhua reports that the Eastern Theater Command has just launched its ‘Joint Sword-2024B’ drills in the Taiwan Strait and the north, south and east of the island of Taiwan.

“Li Xi, spokesperson for the theater command, said the drills involve vessels and planes closing in on the island from multiple directions and assaults by joint forces. The drills focus on joint sea-air combat readiness patrol, the blockade and control of key ports and areas, strikes on sea and land targets, and the seizure of comprehensive battlefield control, so as to test the joint real-combat capabilities of the forces of the command, Li said. The drills are a powerful deterrent to the separatist activities of ‘Taiwan independence’ elements, and are legitimate and necessary actions to safeguard national sovereignty and national unity, Li said.”

This comes after President Lai Ching-te’s Double Tenth speech. Some key remarks:

• The Republic of China and the People’s Republic of China are not subordinate to each other. On this land, democracy and freedom are growing and thriving. The People’s Republic of China has no right to represent Taiwan. 

• Taiwan is resolved in our commitment to upholding peace and stability in the Taiwan Strait and achieving global security and prosperity. We are willing to work with China on addressing climate change, combatting infectious diseases, and maintaining regional security to pursue peace and mutual prosperity for the well-being of the people on the two sides of the Taiwan Strait. For a long time now, countries around the world have supported China, invested in China, and assisted China in joining the World Trade Organization, thereby promoting China’s economic development and enhancing its national strength. This was done out of the hope that China would join the rest of the world in making global contributions, that internally it would place importance on the livelihoods of the people, and that externally it would maintain peace. As we stand here today, international tensions are on the rise, and each day countless innocents are suffering injuries or losing their lives in conflict. We hope that China will live up to the expectations of the international community, that it will apply its influence and work with other countries toward ending Russia’s invasion of Ukraine and conflicts in the Middle East. And we hope that it will take up its international responsibilities and, along with Taiwan, contribute to the peace, security, and prosperity of the region and the globe. In an era when the international landscape is becoming increasingly chaotic, Taiwan will become more calm, more confident, and stronger; it will become a force for regional peace, stability, and prosperity. I believe that a stronger democratic Taiwan is not only the ideal of our 23 million people, but also the expectation of the international community.

Beijing responded with anger. There’s this latest Xinhua commentary, which says:

“Recently, Lai continued to brazenly preach his ‘two states’ claim, openly clamoring that ‘Taiwan has sovereignty’ and that ‘the People's Republic of China (PRC) has no right to represent Taiwan’...The Taiwan regional leader repeatedly referred to the mainland as ‘China.’ He has been playing with concepts and confusing right and wrong. By attempting to highlight the political differences between the two sides of the Strait and break up their historical ties, Lai fabricated the false concept that ‘the Republic of China equals Taiwan’ out of thin air to further advance his ‘Taiwan independence’ plot. Lai has been indulging in outright secessionist and blatantly provocative remarks. Certainly, his increasingly hostile words lead nowhere, only escalating tensions and undermining peace and stability across the Taiwan Strait. If Taiwan's Democratic Progressive Party (DPP) authorities continue going against the historical trend and pursuing their separatist line, they would plunge people in Taiwan into serious calamity.”