Building a Modern Industrial System - NDRC's Measures to Boost Auto & Home Appliance Consumption - Fukushima Wastewater Issue - Reality Check on RMB Internationalisation - Wang Yi's Africa Visit
Here are the key reports and articles that I found noteworthy from the People’s Daily's edition on Monday, July 24, 2023.
Page 1: It’s a very slow news day. So this will be a brief edition. There’s a mid-year review report on efforts to build a modern industrial system. I am not discussing specific companies and products; rather, I’m noting some of the useful data points.
“At present, China possesses the world's largest and most comprehensive manufacturing system, with the output of over 220 types of industrial products ranking first in the world. The added value of manufacturing to global manufacturing has remained at the top position for 13 consecutive years…In the first half of this year, the added value of China’s industrial enterprises above designated size increased by 3.8% year-on-year, i.e., a growth rate was 0.8 percentage points higher than the first quarter.” 当前，我国拥有世界上规模最大、门类最齐全的制造业体系，220多种工业产品产量位居世界首位，制造业增加值占全球制造业比重连续13年位居世界首位...今年上半年，我国规模以上工业增加值同比增长3.8%，增速较一季度加快0.8个百分点，工业经济恢复向好，持续改善。
The article talks about specific projects and achievements, which have been made possible by government support. The article says:
“Shanghai is optimising the ‘market-oriented, competition-driven’ mechanism to modernise the industrial chain. Guangdong is implementing special actions to strive for the proportion of manufacturing value-added to exceed 35% by 2027. Anhui is innovating technology-oriented enterprise financing mechanisms; it has established groups of ‘early investment, small investment, and technology investment’ funds... In the first half of the year, China's industrial investment continued to expand, with an 8.9% year-on-year growth; high-tech manufacturing and high-tech service industry investments increased by 11.8% and 13.9%, respectively, solidifying the foundation for industrial development.” 上海优化“市场主导、揭榜挂帅”机制，全力打好产业链现代化的攻坚战；广东实施专项行动，力争2027年制造业增加值比重升到35%以上；安徽创新科技型企业融资机制，打造“投早投小投科技”基金丛林……上半年，我国工业投资保持扩张，同比增长8.9%；高技术制造业和高技术服务业投资分别增长11.8%、13.9%，产业发展基础继续夯实.
“In 2022, the number of industrial enterprises above designated size in China reached 450,000, an increase of more than 30% compared with 2012. Leading and backbone enterprises are playing a pivotal role/“able to support both heaven and earth” (顶天立地); specialized, refined, unique and innovative enterprises are omnipresent and flourishing (铺天盖地-hiding the sky and covering the earth); and a group of ‘solo champions’ and ‘supporting experts’ have emerged. In the first half of the year, the operating income and profit growth of China’s specialized, refined, unique and innovative enterprises were higher than those of large-scale industrial enterprises.” 2022年我国规模以上工业企业达到45万家，比2012年增长30%以上，龙头骨干企业“顶天立地”，专精特新中小企业“铺天盖地”，一批“单打冠军”“配套专家”脱颖而出。上半年，我国专精特新企业营业收入、利润增长均高于规上工业企业.
As of now, the numerical control rate of key processes and the popularisation rate of digital R&D design tools in industrial enterprises in China have reached 60.1% and 78.3%, respectively; nearly 8,000 digital workshops and intelligent factories have been built, of which more than 2,500 have reached the level of intelligent manufacturing capability maturity above Grade 2; 209 have become international advanced intelligent manufacturing demonstration factories. The product development cycle of these demonstration factories has been shortened by 20.7% on average, and the production efficiency has been improved by 34.8% on average.” 截至目前，全国工业企业关键工序数控化率、数字化研发设计工具普及率分别达60.1%、78.3%，建成近8000个数字化车间和智能工厂，其中2500余个达到智能制造能力成熟度2级以上水平，209个成为具有国际先进水平的智能制造示范工厂，这些示范工厂的产品研发周期平均缩短20.7%，生产效率平均提升34.8%。
“At present, China has established 45 national advanced manufacturing clusters in the fields of new-generation information technology, high-end equipment, new materials, and new energy, with the total output value of leading industries reaching 20 trillion yuan…In the first half of the year, the cumulative production of photovoltaic cells and lithium-ion power batteries increased by 54.5% and 46.4%, respectively. From January to May, a total of 115,000 tons of waste power batteries were recycled.” 目前，我国已在新一代信息技术、高端装备、新材料、新能源等领域建成45个国家先进制造业集群，主导产业总产值达20万亿元...上半年，光伏电池、锂离子动力电池累计产量同比分别增长54.5%、46.4%。前5月，共回收利用废旧动力电池11.5万吨.
“In the first half of the year, the cumulative output of power batteries in China reached 293.6 GWh, a year-on-year increase of 36.8%. The cumulative loading capacity was 152.1 GWh, up 38.1% year-on-year; The cumulative export reached 56.7 GWh.” 上半年，我国动力电池累计产量达293.6吉瓦时，同比增长36.8%；累计装车量152.1吉瓦时，同比增长38.1%；累计出口达56.7吉瓦时.
Next, there’s a report with data on EV infrastructure development. It says:
By the end of June this year, the number of charging piles in China was over 6.6 million. China built more than 1.44 million charging piles in the first half of 2023, of which 351,000 are public charging piles. In the first half of 2023, China's NEV output expanded 42.4 percent year on year to nearly 3.79 million units, and NEV sales surged 44.1 percent year on year to almost 3.75 million units. The country exported 534,000 NEVs in the first six months, an expansion of 160 percent from a year earlier.
On Friday, the NDRC put out new measures to support auto consumption. Xinhua reported:
“Cities with automobile purchase restrictions are encouraged to increase their annual quotas, and the scrapping of vehicles not up to emissions standards will be accelerated, the commission said. The measures will also encourage trade-ins and the exit of obsolete cars, and facilitate the trading and registration of used vehicles. More pilot projects will be implemented in the utility vehicle sector, and more charging infrastructure will be built at bus stations. Increased credit support, such as insurance for charging piles, will be provided, and parking issues will be resolved through the expansion of parking lots and the regulation of fees, per the measures. The NDRC said that more efforts will be invested in lowering the costs of the purchase and use of NEVs, such as adjustments to NEV-related electricity prices. To unleash domestic consumption potential further, China has extended its preferential purchase tax policy for NEVs to the end of 2027.”
There’s more on this on the next page, along with a report on new measures by the NDRC to boost household appliance consumption.
It informs that “in the first half of the year, the retail sales of home appliances and communication equipment increased by only 1% and 4.1% year-on-year respectively. These were among the slow-growing categories of goods.” The NDRC on Friday put out 12 measures to boost their consumption.
The measures cover areas like:
Encourage research institutes and market entities to apply domestic AI technologies to enhance the intelligence level of electronic products. Relying on next-generation information technologies such as virtual reality and ultra-high-definition video, enhance the innovation capability of electronic products and cultivate new growth points for electronic product consumption.
Encourage enterprises to innovate and provide customised sales experiences and promote application scenarios of new goods.
Make efforts to eliminate barriers to the use of electronic products. This covers use of say speech recognition technology to make high-tech products accessible for the elderly, rural residents, etc.
Promote the use of electronic products in rural areas, with subsidies provided for green and intelligent household appliances and for old appliances to be replaced with new ones in eligible areas. Support the promotion and use of green and energy-saving home appliances such as environmentally friendly stoves, air source heat pumps, gas wall-hung boilers, solar water heaters, and household energy storage equipment. Improve rural distribution system for products and promote sale of green and smart products.
Standardise the recycling system. As part of it, the document calls to “increase the crackdown on illegal dismantling of electronic products and illegal circulation of second-hand spare parts.”
Strengthen privacy protection: “Accelerate the improvement of laws and regulations for the protection of personal information, strictly implement policies for protecting consumer information in electronic products such as smartphones, smart homes, and wearable devices. Expedite the formulation of policies and industry standards for data anonymization and compliant use. Legally combat improper use of personal privacy by companies.” 切实加强隐私保护。加快完善个人信息保护法律法规，严格落实手机、智能家居、可穿戴设备等电子产品消费者信息保护政策，加快数据脱敏、合规利用的政策和行业标准制定，依法打击企业不当利用个人隐私行为.
Improve the quality certification system and promote green consumption.
Page 3: A report informing about the meeting between Sri Lankan President Ranil Wickremesinghe and Chongqing Party Secretary Yuan Jiajun on Saturday. Yang visited Sri Lanka from Wednesday to Sunday. Xinhua reports:
“Noting that the two countries are a model for friendly co-existence and win-win relations between countries with different systems, Yuan said China is willing to join hands with the Sri Lankan side at all levels to push to a new level the bilateral strategic cooperative partnership featuring sincere mutual assistance and lasting friendship. He said the CPC is willing to continue strengthening exchanges and mutual learning with Sri Lankan political parties, and to contribute to the development of bilateral relations and their respective national development. Yuan added that Chongqing stands ready to boost cooperation with Sri Lanka on the New International Land-Sea Trade Corridor, jointly enhance the level of openness and development, strengthen collaboration on poverty alleviation, and better promote the high-quality economic and social development of the two countries.”
Page 6: There’s a report based on the press briefing by the Ministry of Human Resources and Social Security. It says:
“According to Chen Yongjia, deputy director of the Employment Promotion Department of the Ministry of Human Resources and Social Security, since the beginning of this year, the surveyed urban unemployment rate has shown an overall downward trend, falling back to 5.2% in June, a decrease of 0.3 percentage points from the same period last year. From January to June, China created 6.78 million new urban jobs, completing 57% of the annual target. In addition, the employment of disadvantaged groups is actively guaranteed. By the end of June, the scale of employment of those who had been lifted out of poverty reached 32.59 million, surpassing the annual target of 30 million people. From January to June, 2.68 million unemployed urban residents found new jobs, and 870,000 difficult-to-employ individuals were employed, both showing an increase compared to the previous year.” 人社部就业促进司副司长陈勇嘉介绍，今年以来，城镇调查失业率整体呈下降趋势，6月份回落至5.2%，较去年同期下降0.3个百分点。1—6月，我国实现城镇新增就业678万人，完成全年目标任务的57%。此外，困难群体就业得到积极保障。6月末，脱贫人口务工规模达3259万人，超过3000万人的年度目标。1—6月，城镇失业人员再就业268万人、困难人员就业87万人，同比均有所增加.
Chen added that going forward, the ministry will implement and refine the employment first policy, strive to accomplish employment objectives and tasks, and ensure overall employment stability:
Intensify efforts to implement the optimised and adjusted policy for stabilising employment, continue to implement the ‘direct compensation and prompt action’ model, accelerate the formulation of high-quality guidelines on full employment, and increase support for enterprises in industries with strong job creation capacity.
Enhance the vitality of entrepreneurship and innovation. Relax market access, implement entrepreneurship guarantee loans and interest subsidy policies, provide a series of linked services such as site support, entrepreneurship training, resource docking, and follow-up guidance to create a strong entrepreneurial atmosphere.
Strengthen the effectiveness of matching supply and demand…rationally distribute the gig market, promote prompt recruitment services, and improve incentive policies and safeguard measures to promote flexible employment.
Provide support for youth employment
Provide strong support to assist those in need. Implement the action to prevent the reversion to poverty due to unemployment, stabilize the scale of rural migrant workers, especially those who have been lifted out of poverty, strengthen employment assistance for unemployed individuals and those in need, ensure timely and full distribution of unemployment insurance benefits, and ensure basic living for vulnerable groups.
下一步，人社部将落实落细就业优先政策，努力完成就业目标任务，努力确保就业大局稳定：强化岗位挖掘增潜力。加力落实好优化调整的稳就业政策，持续推行“直补快办”模式，加快制定高质量充分就业意见，加大对吸纳就业能力强的行业企业支持力度。强化创业创新激活力。放宽市场准入，落实创业担保贷款和贴息政策，强化场地支持、创业培训、资源对接、跟踪指导等一系列链式服务，营造浓厚创业氛围。强化供需匹配加效力。推出全国就业公共服务信息平台，推动全流程进系统、全业务实名制、全服务用数据。推进党建引领基层治理，打造万个“家门口”就业服务站。合理布局零工市场，推进即时招聘服务，完善促进灵活就业的激励政策和保障措施。强化青年支持添动力。加速推进就业服务攻坚行动，全面落实“1311”实名服务，加快事业单位“三支一扶”等岗位招录。强化对困难毕业生和长期失业青年的结对帮扶，深化百万见习岗位募集计划，帮助他们尽早就业。同时，提前谋划部署2024届高校毕业生就业工作。强化兜底帮扶强助力。实施防止返贫就业攻坚行动，稳定农民工特别是脱贫人口的务工规模。加强对失业人员和困难人员的就业帮扶，及时足额发放失业保险待遇，保障好困难群众的基本生活。
The next part of the report deals with steps taken to generate more opportunities for college graduates.
Page 15: On the international page, there’s an article by Ivan Tananaev, from the Russian Academy of Sciences. This is an interesting strategy to get foreign scholars and scientists (ex: Xinhua’s interview with Pakistani nuclear scientist Zafar Koreshi) to echo Chinese viewpoints on the issue. Tananaev writes that Japan should have a “rational and scientific attitude” when it comes to the Fukushima wastewater issue.
“The Japanese government's plan to discharge nuclear-contaminated water into the sea is related to the well-being of neighbouring countries and even all mankind. This is why it has aroused widespread concern in the international community. The Japanese government cannot make a unilateral decision on how to deal with the nuclear-contaminated water. Rather, it should fully discuss and reach a consensus with all parties concerned in a rational and scientific manner before making a proper and responsible decision, so as to truly be responsible for the interests of its own people and international public interests.”
“The Japanese government and TEPCO claim that the nuclear-contaminated water will be treated through the ‘multi-nuclide removal system’ before being discharged into the sea. However, the actual effectiveness of this system has not met expectations, and there have been multiple instances where the concentration of radioactive nuclides in the treated nuclear-contaminated water exceeded the discharge standards. There are doubts about the reliability of the ‘multi-nuclide removal system” and whether radioactive substances in the nuclear-contaminated water can be completely filtered and removed. It is extremely difficult to remove radioactive nuclides from nuclear-contaminated water. Considering factors such as ocean currents and migratory fish, once radioactive substances in the nuclear-contaminated water enter the ocean, they are likely to spread across regions. These radioactive substances may accumulate in marine organisms and be transmitted through the food chain, posing a threat to human health. There are various ways to handle the nuclear-contaminated water at the Fukushima nuclear power plant. The Japanese government has proposed various options such as underground burial and steam release. In addition, industry experts have suggested alternative solutions, such as building large storage tanks for long-term storage of the nuclear-contaminated water. However, the Japanese government has chosen what they consider the most ‘cost-effective’ method - discharging the nuclear-contaminated water into the sea. This approach could pose a serious threat to the marine ecological environment, and its rationale has been widely questioned.” 日本政府和东京电力公司宣称，核污染水在排放入海之前，会经过“多核素处理系统”处理。然而，该系统实际处理效果并没有达到预期，多次出现处理后的核污染水中放射性核素浓度超出排放标准的情况。各方对“多核素处理系统”可靠性、核污染水中放射性物质能否被彻底过滤和清除等存有疑虑。核污染水中的放射性核素极难去除。考虑到洋流、洄游鱼类等因素，核污染水中的放射性物质一旦进入海洋，很可能会形成跨区域扩散。这些放射性物质可能在海洋生物体内富集，并通过食物链传递，进而对人类健康造成危害。处理福岛核电站核污染水可以有多种方式。日本政府曾就核污染水处理提出过地下掩埋、蒸汽释放等多种方案。此外，有业内专家提出新建大型储水罐长期储存核污染水等替代方案。然而，日本政府选择了他们认为最“划算”的方式——将核污染水排海。该方案可能严重威胁海洋生态环境，其合理性引起人们广泛质疑.
The article ends by proposing the establishment of a “working group composed of experts from all relevant parties under the framework of an international organisation to strictly evaluate, verify and supervise the disposal methods and processes of nuclear-contaminated water.”
And that’s about it from the paper today. Sharing below some additional stories that are worth noting, but are not covered in the paper. These include a report on RMB internationalisation and coverage of Wang Yi’s Africa visit along with talk about BRICS expansion, among other things.