China & Solomon Islands Establish Comprehensive Strategic Partnership - Nearly 200 Projects in GDI Portfolio - Property Sector Support Extended - China-Russia Ties - Upgrading Mfg Industrial Chains
Here are the key reports and articles that I found noteworthy from the People’s Daily's edition on Tuesday, July 11, 2023.
Page 1: It’s a news heavy front page today. The lead story is about Xi Jinping’s meeting with Prime Minister of Solomon Islands Manasseh Sogavare in Beijing. Xinhua reports:
“Xi noted that China and Solomon Islands are trustworthy friends and dependable partners to each other. He said that since the two countries established diplomatic relations, their friendly cooperation has become a pacesetter for the relations between China and other island countries in the Pacific in spite of a relatively late start. He said their cooperation is a paradigm of unity, cooperation and common development for countries of different sizes, and for developing countries. Facts have proved that the establishment of diplomatic ties between China and Solomon Islands is a correct choice that is in conformity with the trend of the times and in line with the general international situation, and serves fundamental interests of the two peoples, Xi said.”
Xi “stressed that China greatly appreciates Solomon Islands' firm adherence to the one-China principle, supports Solomon Islands in safeguarding its national sovereignty, security and development interests, and supports the development path that the country itself has chosen. China is committed to running its own affairs well, and will always be a builder of world peace, a contributor to global development and a defender of the international order, Xi noted. He said that to help Solomon Islands ensure development and long-term stability, China is ready to share the development opportunities brought by Chinese modernization, strengthen synergy between the Belt and Road Initiative and Solomon Islands' Development Strategy 2035, expand practical cooperation in various fields, and expand imports from Solomon Islands. ‘China is supporting more Chinese enterprises to invest and do business in Solomon Islands, and will continue to provide economic and technical assistance to the country without any political strings attached,’ Xi said. He urged the two sides to expand friendly exchanges in fields like medical care and education, and said that China supports Solomon Islands in hosting the 17th Pacific Games.”
“Xi pointed out that China fully respects the sovereignty and independence of Pacific island countries, and upholds the equality of all countries, big or small. China fully respects the will of Pacific island countries and pursues extensive consultation, joint contribution, shared benefits and win-win results. China fully respects the cultural traditions of Pacific island countries, and adheres to harmony in diversity and shared beauty of diverse cultures. China fully respects the unity and self-reliance of Pacific island countries, and supports them in implementing the 2050 Strategy for the Blue Pacific Continent, contributing to the building of a peaceful, harmonious, secure, inclusive and prosperous Blue Pacific, Xi said. China understands that island countries in the Pacific face severe challenges caused by climate change, and stands ready to strengthen exchanges and cooperation with them in such areas as meteorological services, disaster prevention and mitigation, and clean energy to help them implement the United Nations 2030 Agenda for Sustainable Development, Xi said. He also said that China is willing to strengthen coordination and cooperation with Solomon Islands, uphold genuine multilateralism, safeguard international fairness and justice, jointly oppose the Cold War mentality and hegemonism, and safeguard peace and stability in the Asia-Pacific region.”
As per Xinhua, Sogavare called the decision to establish ties with the PRC the “correct choice”. He said that “China has become the largest infrastructure partner and a reliable development partner of the Solomon Islands.” He also said that Xi had “demonstrated outstanding vision and extraordinary leadership” in launching the GDI, GSI and GCI, adding that the Solomon Islands “highly appreciates and supports” them. He said that the Solomon Islands “firmly adheres to the one-China principle” and “opposes any actions that contain or aim to contain China's development.”
Towards the bottom of the page is a report on Li Qiang meeting Sogavare. Li said that since the establishment of bilateral ties, China and the Solomon Islands have “become trustworthy friends and reliable brothers.” “Standing at a new historical starting point, China is willing to deepen political mutual trust with the Solomon Islands, continue to firmly support each other's core interests and major concerns, expand dialogue and exchanges at all levels and in all fields, strengthen mutually beneficial cooperation, and promote the improvement and upgrading of bilateral relations.”
“Li Qiang pointed out that China is willing to share development opportunities with the Solomon Islands, further align development strategies, expand cooperation in trade, investment, infrastructure construction, agriculture, forestry, fisheries, information communication, energy and mineral resources, tourism, and other fields, and create more iconic cooperative projects. China will continue to support the Solomon Islands in improving people's livelihoods, maintaining social stability, and hosting the 17th Pacific Games, and is willing to enhance exchanges and cooperation in the fields of culture, education, health, and local affairs with the Solomon Islands. Li Qiang emphasized that China understands the special situation and major concerns of the Pacific Island Countries regarding climate change and will continue to strengthen South-South cooperation with the Solomon Islands in addressing climate change, enhancing the island countries' capacity for independent development and risk response. China is willing to jointly uphold true multilateralism with the Solomon Islands, strengthen coordination and cooperation under multilateral mechanisms such as the United Nations and the Pacific Islands Forum, and jointly safeguard the South Pacific Nuclear-Free Zone and regional stability, development, and prosperity.” 李强指出，中方愿同所方共享发展机遇，进一步对接发展战略，拓展贸易投资、基础设施建设、农林渔业、信息通讯、能源矿产、旅游等领域合作，打造更多标志性合作项目。中方将继续支持所方改善民生、维护社会稳定，支持所方举办第十七届太平洋运动会，愿同所方加强文教、卫生、地方等领域交流合作。李强强调，中方理解太平洋岛国在气候变化问题上的特殊处境和重大关切，将继续同所方加强应对气候变化南南合作，提升岛国自主发展和应对风险能力。中方愿同所方共同坚持真正的多边主义，在联合国、太平洋岛国论坛等多边机制下加强协调配合，共同维护南太平洋无核区，维护地区稳定、发展、繁荣.
As per the report, Sogavare thanked China for its “active assistance in the economic and social development”, and expressed support for BRI, GDI, GSI, and GCI. He added that the Solomon Islands “opposes geo-political manipulation against China” and “highly appreciates China’s important role in maintaining regional and world peace, promoting sustainable development and coping with global challenges…” 所方感谢中方为所罗门群岛和太平洋岛国经济社会发展提供的积极帮助，支持中方提出的“一带一路”倡议、全球发展倡议、全球安全倡议、全球文明倡议，反对针对中国的地缘政治操弄，高度赞赏中方在维护地区和世界和平、促进可持续发展、应对全球性挑战方面发挥的重要作用。所方恪守一个中国原则，愿借鉴中国发展经验，同中方继续深化贸易、投资、人文、应对气候变化等领域交流合作，实现共同发展。
In terms of outcomes, the two sides “announced the official establishment of a comprehensive strategic partnership featuring mutual respect and common development for a new era.” During the visit, the two sides signed cooperation documents in the fields of development cooperation, trade, infrastructure development, civil aviation, education, police affairs, customs and meteorology. A joint statement (available on Page 2) was also issued. The English text of the statement is available via Xinhua.
Some excerpts:
“The two sides agreed that all countries, regardless of size, strength and wealth, are equals, and that their sovereignty and territorial integrity must be respected. The Chinese side reaffirmed its staunch support for Solomon Islands nation building process and to choose a development path suited to its national conditions and in upholding its sovereignty, security and development interests. The Solomon Islands side reaffirmed that it is resolutely committed to the one-China principle, that the government of the People's Republic of China is the sole legal government representing the whole of China and Taiwan is an inalienable part of China's territory, that it opposes ‘Taiwan Independence’ in all forms, and that it firmly supports all efforts made by the Chinese government to realize national reunification. Solomon Islands supports China's position on issues related to Hong Kong, Xinjiang, Tibet, etc., and opposes interference by any country in the internal affairs of other countries under the pretext of democracy or human rights.” — So much for a partnership “without any political strings attached.”
The two sides agreed to:
Establish and enhance high-level exchanges and interactions at all levels…
Promote BRI and “expand practical cooperation in a wide range of areas including trade and investment, agriculture, forestry, fishery, rural development, infrastructure including disaster resilient infrastructure, energy and minerals, information and communications, marine resource protection and exploitation, finance, civil aviation, low emission and green development, and digital economy”
“Expand exchanges and cooperation in areas such as culture, education, health, sports, tourism, youth, think tank and the media and at the subnational level. China will continue to provide government scholarships and various kinds of training opportunities including maritime support and send medical teams to Solomon Islands. The Peace Ark hospital ship of the Chinese Navy will visit Solomon Islands and provide humanitarian medical service in 2023. The two sides formally signed the Agreement Between the Government of the People's Republic of China and the Government of Solomon Islands Relating to Civil Air Transport, and are committed to launching direct flights between the two countries as early as possible.”
“Enhance cooperation on law enforcement and security matters. The Chinese side will continue to provide support and help to Solomon Islands as needed in strengthening Solomon Islands' police law enforcement capacity. The two sides agreed to step up protection of the safety and lawful rights and interests of each other's nationals and institutions in their countries.”
“Practice true multilateralism, firmly uphold international fairness and justice, oppose hegemonism and power politics, reject unilateralism in all forms, and stand against camp-based, exclusive ‘small circles’ targeting specific countries. Oppose protectionism, erection of walls and barriers, decoupling, and cutting supply chains, and reject imposition of unilateral sanctions and maximum pressure.”
“Advocate humanity's common values of peace, development, fairness, justice, democracy and freedom, and safeguard the common interests of developing countries. Be committed to building a community with a shared future for mankind, and jointly implement the Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative. China welcomes Solomon Islands’ decision to join the Group of Friends of the Global Development Initiative.”
“The two sides agreed to strengthen cooperation under multilateral mechanisms such as the China-Pacific Island Countries Foreign Ministers' Meeting and the China-Pacific Island Countries Economic Development Cooperation Forum, and under multilateral cooperation frameworks concerning humanitarian, emergency supplies, climate response, poverty alleviation and development, disaster prevention and mitigation, Juncao technology, agriculture, etc., to deepen and cement the cooperation between China and Pacific Island Countries as a whole.”
Next, there’s a report on the meeting between Xi Jinping and Russian Federation Council Speaker Valentina Matviyenko. Xinhua reports:
“Xi noted that with joint efforts of both sides, China-Russia relations have maintained a sound and steady development momentum, with steady progress in cooperation in various fields. The social foundations and popular support for the long-term friendship between the two countries have become more solid. ‘During my state visit to Russia in March this year, President Putin and I reached new and important consensus on deepening bilateral comprehensive strategic coordination and practical cooperation in various fields,’ Xi said, noting that the development of China-Russia relations is a strategic choice that the two countries have made based on the fundamental interests of their respective countries and peoples. China will continue to work with Russia to develop a comprehensive strategic partnership of coordination for a new era, featuring mutual assistance, in-depth integration, innovation and win-win outcomes for all, so as to boost the development and revitalization of the two countries and promote the construction of a prosperous, stable, fair and just world, Xi said. Noting that legislative cooperation is an important part of China-Russia relations, Xi expressed the hope that the two sides will work together to implement the important consensus reached by the two heads of state, promote and guarantee the sustained and sound development of bilateral cooperation in various fields from the legislative level, strengthen exchanges of experience in legislation and state governance, and push cooperation between the legislative bodies of the two countries to a new level. He called on the two sides to strengthen communication and coordination within multilateral mechanisms such as the Shanghai Cooperation Organization and BRICS, guide the reform of global governance in the right direction, and safeguard the common interests of emerging markets and developing countries.”
Matviyenko said that the “Russian Federation Council supports deepening Russia-China cooperation and is willing to strengthen exchanges with China’s National People's Congress to provide a legal guarantee for the implementation of the consensus of the two heads of state.”
Also on the page is a report on Zhao Leji and Matviyenko participating in the 8th meeting of the China-Russia committee for parliamentary cooperation. Xinhua reports:
“the relationship between the two countries withstood the test of international changes and always maintained a correct direction. Commending their mutual political trust, practical cooperation, and international coordination between the two countries, Zhao said that the relations between the two countries show strong endogenous motivation and broad development prospects, which benefit the two peoples and inject stability into the international situation. Zhao said that China and Russia regard each other as priority partner, always respect and treat each other as equals, and firmly support each other on issues concerning each other's core interests and major concerns. Despite the weak global economic recovery and other adverse factors, the China-Russia practical cooperation has maintained steady development, added Zhao, calling on the two sides to implement current projects, steadily advance cooperation in key areas, further optimize the business environment, and give full play to the role of cooperation mechanisms.”
“Zhao also called to strengthen the exchange and mutual learning of legislation, supervision, and experience in governing the country, consolidate and expand cooperation among local legislative bodies, strengthen legislative cooperation in foreign-related fields, and promote the formation of foreign-related laws and regulations that suit their respective national conditions and in real terms. On multilateral cooperation, Zhao called on the two sides to enhance coordination under the framework of the Shanghai Cooperation Organization, BRICS, the G20, and the Meeting of Speakers of Eurasian Countries' Parliaments, champion genuine multilateralism, and promote the development of international order in a more just and rational direction.”
Next, there’s a report on Xi congratulating Shavkat Mirziyoyev on his election as Uzbek president. Xi said: “in recent years, China-Uzbekistan relations have achieved leapfrog development under their joint guidance, with cooperation in various fields comprehensively strengthened. Noting that he highly values the good working relationship and personal friendship with Mirziyoyev, Xi said that he stands ready to work with Mirziyoyev to promote the sustained development of the China-Uzbekistan comprehensive strategic partnership and further energize the building of a China-Uzbekistan community with a shared future.”
Next, there’s a report on Cai Qi’s meeting with Communist Party of Vietnam delegation headed by Nguyen Xuan Thang. Xinhua says:
Cai said that “both sides should enhance theory and experience exchanges on party and state governance, advance practical cooperation in various fields, enhance people-to-people friendship and mutual trust, deepen cooperation on international and regional affairs, and push for steady and long-term growth of China-Vietnam relations…Nguyen Xuan Thang said Vietnam supports the concept of building a community with a shared future for humanity and major global initiatives put forward by Xi, and is willing to promote bilateral cooperation in various fields through inter-party relations.”
Next, there’s a report on Wang Huning’s comments at a consultation seminar on the topic of advancing the improvement and upgrading of key industrial chains in the manufacturing sector. Wang “expressed the hope that all democratic parties would deeply study and understand General Secretary Xi Jinping's important exposition on the high-quality development of the manufacturing industry and the modernization of industrial chains, unify their thoughts and actions with General Secretary Xi Jinping's important instructions and the decision-making arrangements of the CPC Central Committee, carry out targeted research and consultations, and make contributions to promoting economic and social development.” 他表示，希望各民主党派深入学习领会习近平总书记关于制造业高质量发展和产业链现代化的重要论述，把思想和行动统一到习近平总书记重要指示精神和中共中央决策部署上来，扎实开展重点考察调研和政党协商，为促进经济社会发展作出贡献。
Wang affirmed the research work of and suggestions made by central committees of non-CPC parties on the subject. He added “that it is necessary to profoundly understand that promoting the improvement and upgrading of key industrial chains in the manufacturing industry is an inevitable requirement for promoting high-quality economic development, an urgent need for accelerating the establishment of a new development pattern, a crucial task for coordinating the expansion of domestic demand and deepening supply-side structural reforms, and a strategic choice for responding to global industrial competition and shaping new advantages in industrial development. It is necessary to adhere to and strengthen the comprehensive leadership of the CPC over party consultations, focus on the central task and serve the overall situation, strive to consolidate and enhance consensus, strengthen capacity for consultation, and continuously improve the quality and level of political party consultations.” 王沪宁对有关民主党派中央围绕“扎实推进制造业重点产业链优化升级”深入调查研究，积极建言献策，取得阶段性成效给予充分肯定。他表示，要深刻认识推进制造业重点产业链优化升级是推动经济高质量发展的必然要求，是加快构建新发展格局的迫切需要，是统筹扩大内需和深化供给侧结构性改革的重要任务，是应对全球产业竞争、塑造产业发展新优势的战略选择。要坚持和加强中国共产党对政党协商的全面领导，坚持围绕中心、服务大局，着力凝聚和增进共识，加强协商能力建设，不断提高政党协商的质量和水平.
Finally, there is a report on Xi’s letter to the first high-level conference of the Forum on Global Action for Shared Development. Xinhua reported that Xi talked about GDI, saying that it has “yielded important early results and benefited many developing countries.”
He added:
“development is the eternal theme of human society, and shared development is an important path to building a better world. As the largest developing country, China has always placed its own development within the larger context of human development and created new opportunities for the development of the world through its own development, Xi said. China will further increase its resource input for global development cooperation, work with the international community to further advance the Global Development Initiative, and make new contributions to the realization of the UN 2030 Sustainable Development Goals and the building of a community with a shared future for humanity.”
Page 2: There’s a report on Wang Yi’s comments at the Forum on Global Action for Shared Development. Wang said that:
“China has, together with partners, carried out numerous cooperation projects, established extensive cooperation networks, and improved the lives of people in all countries since the GDI was proposed in 2021. For the cause of global development, people of all countries should work together, share and discuss development plans, create a development pattern, share development achievements and scheme development governance…Wang noted that China is the largest developing country in the world and a member of the Global South, and said the country will stand firmly with the vast number of countries in the Global South. China will take action in six areas:
supporting the development priority agenda
optimizing the cultivation of development projects
breaking the bottleneck of development financing
expanding development cooperation methods
strengthening tripartite development cooperation
supporting youth to lead development.”
Here are the leaders that delivered speeches at the event:
Solomon Islands Prime Minister Manasseh Sogavare
Tanzanian President Samia Suluhu Hassan
Zimbabwean President Emmerson Mnangagwa
Cambodian Prime Minister Samdech Techo Hun Sen
Pakistani Prime Minister Shahbaz Sharif
Former UN Secretary-General Ban Ki-moon
First Deputy Prime Minister of Belarus Nikolai Snopkov
Lao Deputy Prime Minister and Minister of Foreign Affairs Saleumxay Kommasith
Another Xinhua report on the forum informs that over 800 participants attended the meeting.
“To support the implementation of the GDI, China announced 32 concrete actions in 2022, half of which have been accomplished by now. The GDI project pool, with its first list of projects released last year, is being enlarged and now includes nearly 200 projects. China has created the Global Development and South-South Cooperation Fund and increased its capital to 4 billion U.S. dollars. Over 100 countries and international organizations showed their support of the GDI, and nearly 70 countries have joined the Group of Friends of the GDI. China has also signed Memorandums of Understanding on cooperation with nearly 20 countries and international organizations in this regard.”
A commentary on the page discussing the forum says:
“In the past year, half of the 32 practical initiatives in the Outcome List of the High-level Dialogue on Global Development have been implemented or have achieved early results. Among the first batch of 50 practical cooperation projects listed in the GDI Project Portfolio released during the Ministerial Meeting of the GDI Group of Friends, over 10 projects have been completed, and the total number of practical cooperation projects in the project portfolio is now close to 200. The Chinese government has initiated 1,000 human resources development cooperation projects, providing 20,000 training opportunities, covering almost all countries of the Group of Friends of GDI…China has always been an active promoter of global shared development. From integrating the GDI with the UN 2030 Agenda for Sustainable Development to closely aligning development strategies with developing countries, from establishing the Global Development and South-South Cooperation Fund to launching the international poverty reduction cooperation network, from the establishment the World Vocational and Technical Education Development Alliance to announcing that the data of the ‘Sustainable Development Science Satellite 1’ launched by China is open to the world for sharing... China has played an active role in revitalizing global development, providing feasible and replicable practical solutions, accumulating valuable experience for achieving sustainable development goals, and bringing about more new opportunities for global development.” 共享发展是建设美好世界的重要路径。过去一年，《全球发展高层对话会成果清单》中的32项务实举措已有一半实施完成或取得早期成果；“全球发展倡议之友小组”部长级会议期间发布的全球发展倡议项目库首批50个务实合作项目清单中，10多个已经实施完毕，目前项目库务实合作项目总数已接近200个；中国政府立项安排1000期人力资源开发合作项目，已提供2万个培训名额，基本覆盖全部“全球发展倡议之友小组”国家……在各方共同参与下，全球发展倡议合作取得一系列重要早期收获。“为人民创造更好的生活是我们共同的责任。”所罗门群岛总理索加瓦雷在致辞中表示，中国提出的全球发展倡议有助于各方采取快速行动实现发展议程，中国在发展合作方面的经验至关重要。推动全球共享发展，中国始终是行动派。从将全球发展倡议与联合国2030年可持续发展议程更有机结合起来到与发展中国家的发展战略更紧密对接，从创设全球发展和南南合作基金到成立国际民间减贫合作网络，从筹建世界职业技术教育发展联盟到宣布中国发射的“可持续发展科学卫星1号”数据面向全球开放共享……中国与各方共商发展大计、共建发展格局、共享发展成果，为重振全球发展事业发挥了积极作用，提供了可行、可复制的实践方案，为实现可持续发展目标积累了有益经验，为全球发展带来更多新机遇.
Anyway, if you are interested in the details of GDI’s progress, do checkout my coverage of MoFA’s recent report on this.
Next, there’s a consolidated report on Wang Yi’s meetings with the foreign ministers of Gabon and Laos, along with Ban Ki-moon.
Xinhua’s report on the meeting with Gabonese Foreign Minister Hermann Immongault says:
“China will realize national rejuvenation through Chinese modernization, bring new opportunities for developing countries, especially for African countries at the same time, and provide a reference for other countries in pursuing development paths suited to their national realities. Noting the high-level political mutual trust between China and Gabon is the greatest advantage of bilateral relations, Wang said that China is willing to continue to support each other in safeguarding core interests, promote bilateral cooperation to more fields and a higher level, and jointly uphold the basic norms in international relations. Wang said that China appreciates Gabon's active participation in the Forum on China-Africa Cooperation and will continue to follow the principles of sincerity, real results, affinity, and good faith and be committed to the greater good and shared interests. China will work with Gabon and other African countries to carry forward the spirit of China-Africa friendship and cooperation to create a new chapter of China-Africa development and cooperation, Wang added.”
Hermann Immongault “said that Gabon speaks highly of China's contribution to global peace and development, highly appreciates a series of cooperation initiatives brought by China on Africa-China cooperation, and is willing to work with China to promote the building of an Africa-China community with a shared future.”
Xinhua’s report on the meeting with Laos’ Saleumxay Kommasith says: Wang called to “jointly push the China-ASEAN comprehensive strategic partnership to a new level. Wang also called for accelerating negotiations on the upgraded China-ASEAN Free Trade Area, which could inject new impetus into the building of a peaceful, safe and secure, prosperous, beautiful and amicable home between China and ASEAN.”
Finally, the report on the meeting with Ban says:
Wang said that “since China and the Republic of Korea (ROK) established diplomatic ties 30 years ago, bilateral relations have gone through an extraordinary journey and achieved unprecedented results. He said that bilateral relations should move forward instead of stagnating or backsliding. China's policy toward the ROK remains unchanged, Wang said, adding that it is hoped that the ROK will work with China to overcome temporary difficulties, reinvigorate exchanges and cooperation, and open up broad prospects for the development of bilateral relations. Ban thanked China for its strong support during his tenure as UN secretary-general and BFA chairman, and appreciated China for putting forward a series of important global initiatives, which have injected a strong impetus into global synergy. The ROK and China are close neighbors and must get along well with each other, and he will make continuous efforts for the development of ROK-China relations, Ban said.”
Page 3: Two reports to note The PBOC and the National Administration of Financial Regulation issued a notice saying that they will extend two financial policies supporting the stable and healthy development of the real estate market to the end of 2024. Xinhua reports that the extended financial policies focus on two areas: the reasonable deferral of property development loans and credit loans, and encouraging financial institutions to provide policy support for special loans that ensure the delivery of housing projects.”
“The move signals that regulators consider it’ll take a year and a half more for developers to see their fundraising and operations normalize,’ said Liu Shui, a research director at China Index Holdings Ltd. ‘It means the housing market downturn and developer risks have been worse than they expected earlier.’ Loans due by the end of 2024 account for about 30% to 40% of developers’ total debts, according to Raymond Cheng, head of China and Hong Kong research at CGS-CIMB Securities, adding the measures may help ease developers’ liquidity in the short term if implemented.”
The report adds: “China Securities Journal, the country’s flagship securities newspaper, said Tuesday that China is expected to ‘accelerate’ policy roll-out in order to promote the stable and healthy development of its real estate market. In a separate report, it also said the government may introduce measures to boost business confidence among private, state-owned and foreign firms following officials’ recent meetings with company executives.”
China’s Consumer Price Index was flat for June, compared with the 0.2% gain seen in May. Reuters reports that “Nomura expects consumer prices to fall 0.5% year-on-year in July, even taking into account a potential rise in service inflation as a result of the summer holiday season.”
Meanwhile, the Producer Price Index fell 5.4 percent year on year in June. This is the fastest pace of decline in PPI in over seven years. Reuters reports: “We think the more challenging deflation environment and sharp slowdown in growth momentum support our view that the PBOC has entered a rate-cutting cycle,’ said economists at Barclays in a research note. The producer price index (PPI) fell for a ninth consecutive month in June, down 5.4% from a year earlier, the National Bureau of Statistics (NBS) said on Monday, the steepest decline since December 2015. That compared with a 4.6% drop in the previous month and a 5.0% fall tipped in a Reuters poll of analysts.”
Page 17: On the international page, there’s a report talking about “frequent” train derailments in the US. A couple of reports discuss the discourse in South Korea on the Fukushima wastewater discharge issue. One of these reports covers the criticism of the IAEA from South Korea’s opposition lawmakers. Another one talks about the visit of 9 South Korean lawmakers going to Japan to protest.
Also on the page is this engagement from the MoFA briefing yesterday:
CCTV: The US State Department updated its China Travel Advisory, claiming that China is expanding security scrutiny of citizens and businesses of other countries, and there may be entry and exit bans and wrongful detentions. What is your comment?
Mao Ning: China is a country committed to the rule of law. The decisions to conduct security reviews over foreign companies by competent Chinese departments are made in accordance with the laws and the facts. China welcomes the people and businesses of all countries to come to China and do business here, and we are committed to protecting their safety and lawful rights and interests in China in accordance with the law, including their freedom of entry and exit. Speaking of entry and exit review and wrongful detentions, in recent years, the US has put up hurdles and even harassed and interrogated under various excuses Chinese nationals entering the US. From time to time, Chinese students bound for the US have been refused entry and sent back. In 2021, the US refused to issue visas for at least 2,000 Chinese students majoring in science, technology, engineering or mathematics. From January to October 2022, the number of visas issued for Chinese students bound for the US dropped by 38% year-on-year. Recently, the US has smeared China’s efforts to repatriate corrupt fugitives and recover criminals’ illegal proceeds, and even prosecuted and detained Chinese nationals and people of Chinese descent in the US. The US has scapegoated China on fentanyl-related issues, resorting to “sting operations” and extra-territorial abduction against Chinese nationals, and prosecution against Chinese entities and individuals. We urge the US to stop its wrongdoing at once, stop disrupting practical cooperation between the two countries, stop arbitrary detentions and abuse of process against Chinese businesses and individuals, and earnestly protect the legitimate and lawful rights and interests of Chinese businesses and nationals in the US.”
The above is interesting, given that Janet Yellen spoke about raising concerns of American firms with Chinese officials. Today it was reported that the party secretary of Shanghai’s commercial Jing’an district, Yu Yong, visited Bain’s office there last Wednesday to discuss the company’s operations. WSJ reports that:
“Weiwen Han, managing partner for Bain in Greater China, introduced the consulting firm’s current operations, its history in the country since it entered the market in 1991 and the key areas in which Bain seeks to expand its business there, the company said. Yu, the local party chief, said Jing’an has always pursued international development and worked to become a hub for professional services, adding that the district would continue to ‘create a premier business environment and escort the development of enterprises,’ according to Bain’s statement. Bain and Han declined to comment further.”