Commentary on Disorderly Expansion of Capital - Domestic Demand & Growth - Wang Yi Speaks to Iran FM
Here are the stories and pieces that I found noteworthy from the Tuesday, February 08, 2022, edition of the People’s Daily.
Page 1: There’s little newsworthy on the front page today. But there is a report that tells us something about editorial decision-making. On Friday, Xi Jinping congratulated re-elected Italian President Sergio Mattarella. But with so much else happening, this story was not reported in the paper. So today, this has been picked up and given front-page space. Of course, this is not because PD is really interested in the twists and turns of the Italian presidency. It’s probably because missing out on a Xi engagement story would be seen as an editorial failing.
Likewise, there’s a report today about Xi congratulating (English report) Queen Elizabeth II on the 70th anniversary of her accession to the British throne. This was first reported by Xinhua on Sunday.
Third, a report about Xi Jinping sending a reply letter to Adam Foster, president of the Helen Foster Snow Foundation.
“In the letter, sent on Jan. 27, Xi pointed out that Edgar and Helen Snow actively promoted the Chinese Gong He (Gung Ho) movement of industrial cooperatives, and played an important role in establishing the Shandan Peili School in China's Gansu province. The Chinese people, he added, bear in mind the contributions made by international friends, including the Snows, to China's revolution and construction, as well as their sincere friendship with the Communist Party of China and the Chinese people. The Chinese president said he highly appreciates the positive contributions made by the Helen Foster Snow family to the development of China-U.S. relations over the years. He expressed his hope that Foster and the foundation will continue to follow the example of the Snows and make new contributions to enhancing the friendship and cooperation between the Chinese and American people.”
Next, there’s a long piece sort of recapping the events of the past few days, i.e., the opening of the Olympics and the visits of world leaders. Of course, Xi Jinping is at the center of the story. There are some 37 mentions of Xi Jinping in the story, excluding the headline.
Page 2: A few reports to note. First a piece on the Chinese economy, drawing on NBS’ data. Key data points include:
domestic demand contributed to a total of 79.1% of the 2021 GDP growth. This was up 4.4 percentage points year on year.
GDP was at RMB 114 trillion; per capita GDP was at $12,000
5G mobile phone shipments reached 266 million
production and sales of NEVs were at 3.545 million and 3.521 million
12.69 million new jobs were created in urban areas, an increase of 830,000 year-on-year
basic pension for retirees grew by 4.5%
basic pension insurance and basic medical insurance covered 1.03 billion people and 1.36 billion people, respectively
Engel coefficient was at 29.8%, a decrease of 0.4 percentage points year on year
there are a total of 150 million market entities, and the activity rate of enterprises was around 70%
In the final paragraph, the unidentified person from the NDRC is quoted as saying that:
“The spread of the epidemic continues to restrict the recovery of consumption; the foundation of domestic demand development is still not solid; and the growth potential is still lacking.” - ”该负责人表示，应该看到，散发疫情对消费恢复持续形成制约，内需发展基础仍不牢固，增长后劲仍显不足.
Second, there are two reports with data about economic activity during the holidays. I am linking the English reports.
So, from Jan. 31 to Feb. 6, 749 million parcels were received and delivered by the country's postal and express companies.
Also, non-cash payments, involving bank cards, online payment vehicles, commercial papers, credit transfers and other settlements, stood at 14.9 trillion yuan (about 2.34 trillion U.S. dollars) from Jan. 31 to Feb. 6, up 16.2 percent year on year, the People's Bank of China said on Monday.
Finally, a report about China’s communications industry. It says that the combined business revenue in the telecom sector rose 8 percent year on year to 1.47 trillion yuan (about 232.43 billion U.S. dollars) in 2021, with the growth rate up 4.1 percentage points from 2020, according to the Ministry of Industry and Information Technology. “New digital services for enterprises such as cloud computing, big data and data centers have emerged as the biggest force driving the increase in business revenue of this sector," the ministry said. Revenue from these digital services in 2021 jumped 27.8 percent from a year ago and contributed to some 44.5 percent of the telecom industry's revenue growth.
Page 3: There’s a report (English report) about Wang Yi’s chat with Iranian Foreign Minister Hossein Amir Abdollahian. This bit was really interesting in terms of the kind of gestures that are being noted and then being reported:
“Noting that Iranian President Ebrahim Raisi recently sent a letter to Chinese President Xi Jinping to congratulate China on hosting the Beijing Winter Olympics, and the Iranian foreign minister himself has supported China in Chinese on social media, Wang expressed appreciation and gratitude, and wished Iranian athletes good performance in the Games.”
The rest of the report is about the JCPOA:
“Amir Abdollahian briefed Wang on the latest progress in the negotiations on resuming the implementation of the Joint Comprehensive Plan of Action (JCPOA). He said that Iran is firmly committed to reaching an agreement through negotiation while effectively safeguarding Iran's national interests. Any agreement must be reached through consultation and negotiation and cannot be unilaterally imposed on others. The final text should be the result of joint consultation, he added. For his part, Wang said China appreciates Iran's principled position of resolving the issue through negotiation and supports Iran in raising reasonable demands during the negotiations. On the whole, the negotiations are taking positive steps toward the final settlement of the issue. China believes that Iran's legitimate rights and interests will receive full attention from all parties, said Wang.”
Although it is not in PD, there’s this commentary on China’s Mideast diplomacy.
“Meeting separately with Egyptian President Abdel-Fattah al-Sisi, Qatari Emir Sheikh Tamim bin Hamad Al Thani, and Crown Prince Sheikh Mohammed bin Zayed Al Nahyan of Abu Dhabi of the United Arab Emirates (UAE), Xi underscored the importance of dovetailing the development strategies between the two sides. In his meeting with Sisi, Xi urged China and Egypt to join hands to take the lead in China-Arab and China-Africa cooperation, accelerate the building of the China-Arab community with a shared future for the new era, and promote African development and prosperity. During talks with Qatari and UAE leaders, Xi reiterated China’s willingness to work with the Gulf Cooperation Council (GCC), of which Qatar and the UAE are both members, to accelerate free trade agreement negotiations. The agreement, if reached, is expected to generate market opportunities that benefit all parties. Positive momentum already emerged three weeks ago as Chinese State Councilor and Foreign Minister Wang Yi hosted his counterparts from Saudi Arabia, Bahrain, Kuwait, Oman, Turkey, and Iran, as well as the secretary general of the GCC, in east China, marking the first round of intensive diplomatic interactions between China and Mideast countries since the start of the new year.
“China donated and exported a large quantity of COVID-19 vaccines to Middle East countries in dire need of them, at a time when Western countries largely hoarded vaccines for their own good...The development strategies of China and Mideast countries are also highly complementary. China, a big energy consumer and a major country leading the global green efforts, could expand cooperation with Mideast countries in diversifying their economies and optimizing its own energy structure. Meanwhile, China has long upheld the principle of non-interference in other countries’ internal affairs and insisted that its collaboration with foreign countries have no political strings attached. This principle as well as natural advantage promises broad prospects for practical cooperation between China and Mideast countries, which are long plagued by interference, sanctions and threats from U.S.-led West.” —
Quick thought: This claim of engagement with China coming without political strings being attached requires some unpacking. First, in one sense, it is obviously bunkum. Of course, there are strings attached. Countries must adopt and publicly reiterate certain positions on China’s core interests, and issues like say developments in Xinjiang and Hong Kong. For instance, the joint statement issued after the Extraordinary China-Africa Summit On Solidarity Against COVID-19 in June 2020 had this line: “The African side supports China's position on Taiwan and Hong Kong, and supports China's efforts to safeguard national security in Hong Kong in accordance with law.” Why does a discussion about solidarity amid a once-in-a-100-year pandemic require such a comment? Also, if you’ve been reading this tracker for a while, you would have also noticed that Chinese readouts of Xi’s meetings with world leaders often have the visitors reiterate support for things like the one-China principle or policies in Xinjiang. These are examples of acquiescence on certain issues being a prerequisite for deeper collaboration. Another example is the case of Lithuania, where non-acquiescence or displeasing Beijing leads to economic and political costs. But this isn’t what Chinese officials mean when they talk about collaboration having no political strings attached. The way I see it, this is meant to imply that the political and economic system or the internal issues of a particular country are immaterial to such collaboration.
Page 5: Today we have the second commentary talking about one of the five major theoretical and practical issues that were clarified at the CEWC. This one focuses on the need to “correctly understand and grasp the characteristics and behaviour laws of capital.” The commentary says that:
“Capital is profit-seeking. It is necessary to strengthen the effective supervision of capital according to law in order to prevent the barbaric growth of capital, and also to support and guide the standardized and healthy development of capital. Under the condition of socialist market economy, how one should foster the positive role of capital as a factor of production and effectively control its negative role requires us to correctly understand and grasp the characteristics and behaviour laws of capital.” 资本是要逐利的，既要依法加强对资本的有效监管，防止资本野蛮生长，也要支持和引导资本规范健康发展。在社会主义市场经济条件下，如何发挥资本作为生产要素的积极作用，同时有效控制其消极作用，需要我们正确认识和把握资本的特性和行为规律.
“The socialist market economy is essentially an economy ruled by law, which must be guided by protecting property rights, maintaining contracts, unifying markets, equal exchange, fair competition and effective supervision, and activities of capital must be conducted according to law. Since the 18th Party Congress, the CPC Central Committee with Comrade Xi Jinping as the core has made a series of major decision-making arrangements around perfecting the legal system of the socialist market economy, promoting the construction of a high-standard market system, promoting the formation of a unified, open and competitive market system, achieving initial results in preventing the disorderly expansion of capital and the market order in terms of fair competition is steadily improving. This shows that to correctly understand and grasp the characteristics and behaviour laws of capital, it is necessary to set up ‘traffic lights’ for capital, improve the negative list management system for market access, strengthen source governance and industry supervision, strengthen market supervision and anti-monopoly and anti-unfair competition regulations, strengthen effective supervision of capital according to law, prevent the barbaric growth of capital, and support and guide the healthy development of capital norms. It is necessary to set up both ‘red lights’ and ‘green lights’. The ‘red light’ is to demarcate boundaries and strengthen regulations, and the ‘green light’ is to encourage capital to play a positive role as a factor of production.” 社会主义市场经济本质上是法治经济，必须以保护产权、维护契约、统一市场、平等交换、公平竞争、有效监管为基本导向，资本活动要依法进行。党的十八大以来，以习近平同志为核心的党中央围绕完善社会主义市场经济法律制度，作出一系列重大决策部署，推进高标准市场体系建设，推动形成统一开放、竞争有序的市场体系，防止资本无序扩张初见成效，市场公平竞争秩序稳步向好。这说明，正确认识和把握资本的特性和行为规律，就要为资本设置“红绿灯”，完善市场准入负面清单管理制度，加强源头治理和行业监管，强化市场监管和反垄断、反不正当竞争规制，依法加强对资本的有效监管，防止资本野蛮生长，支持和引导资本规范健康发展。既要设置“红灯”也要设置“绿灯”，“红灯”是为了划定边界、加强规范，“绿灯”是为了发挥资本作为生产要素的积极作用.
The next paragraph sheds more light on the traffic lights.
“It should be noted that preventing the disorderly expansion of capital does not mean not having capital (不是不要资本). Rather it relates to ensuring the orderly development of capital. Coordinate development and security, efficiency and fairness, vitality and order, domestic and international; adhere to the principle of paying equal attention to supervision and regulation and promoting development, clarify rules, draw bottom lines, and set up ‘traffic lights’, with the aim of guiding and urging enterprises to obey the Party’s leadership, serve the overall economic and social development, and encourage and support enterprises to play an active role in promoting scientific and technological progress, benefiting the market economy, improving people’s lives, and facilitating their participation in international competition.
The aims of standardizing development and strengthening supervision are to promote healthier, more sustainable and longer-term development; the purpose of preventing the disorderly expansion of capital and the barbaric growth of capital is to ensure the orderly and healthy development of capital, and to support related enterprises to achieve standardized innovation, healthy and sustainable development. Strengthening the effective supervision of capital according to law, perfecting the legal systems related to market access, industry supervision and fair competition, and building the institutional foundation for the effective operation of the socialist market economy can provide a firmer guarantee for the standardized and healthy development of all kinds of capital and industries.”
应该看到，防止资本无序扩张，不是不要资本，而是要资本有序发展。统筹发展和安全、效率和公平、活力和秩序、国内和国际，坚持监管规范和促进发展两手并重、两手都要硬，明确规则，划出底线，设置好“红绿灯”，目的是引导督促企业服从党的领导，服从和服务于经济社会发展大局，鼓励支持企业在促进科技进步、繁荣市场经济、便利人民生活、参与国际竞争中发挥积极作用。规范发展、加强监管，是为了促进更加健康、更可持续、更为长远的发展；防止资本无序扩张、防止资本野蛮生长，是为了资本能够有序发展、健康发展，对于支持相关企业实现规范创新健康持续发展具有重要作用。依法加强对资本的有效监管，完善市场准入、行业监管、公平竞争等法律制度，筑牢社会主义市场经济有效运行的体制基础，能够为各类资本、各个行业规范健康发展提供更为牢固的保障.
The next paragraph reiterates the support for the two unwaverings, which reaffirms support for the private sector. Then it adds:
“To correctly understand and grasp the characteristics and behaviour laws of capital, we must adhere to and improve the socialist basic economic system, create a market environment in which all ownership entities use resource elements equally according to law, participate in competition openly, fairly and equitably, and enjoy equal protection by law, so as to stimulate the vitality of market entities to the maximum extent, let all the vitality of labor, knowledge, technology, management and capital compete with each other and come forth, and let all the sources of creating social wealth flow fully.” 正确认识和把握资本的特性和行为规律，就要坚持和完善社会主义基本经济制度，营造各种所有制主体依法平等使用资源要素、公开公平公正参与竞争、同等受到法律保护的市场环境，最大限度激发市场主体活力，让一切劳动、知识、技术、管理和资本的活力竞相迸发，让一切创造社会财富的源泉充分涌流.
The final paragraph says:
“It should be noted that both the value-creation and barbaric growth of capital are derived from its profit-seeking nature. The key regarding which of these aspects are mainstream depends on whether one is able to correctly and effectively guide the behaviour of capital. Under the condition of socialist market economy, if we correctly understand and grasp the characteristics and behaviour laws of capital, we can make good use of its strengths and avoid its weaknesses, make good use of its advantages and avoid its disadvantages, give full play to its positive role while preventing the barbaric growth of capital, and inject a strong impetus into sustained and healthy economic development.” 应该看到，资本创造价值和野蛮生长都源于其逐利性，哪一面是主流，关键在于是否能正确而有效地引导资本的行为。在社会主义市场经济条件下，正确认识和把握资本的特性和行为规律，就能扬长避短、趋利避害，在防止资本野蛮生长的同时充分发挥其积极作用，为经济持续健康发展注入强劲动力.
Other Stories:
I didn’t find the pieces on the theory page, but here they are. First, Li Yiping from the School of Economics, Renmin University of China writes about pursuing people-centered development philosophy and focussing on common prosperity. Second, an article by Jiang Ping, the political commissar of the Air Force of the Western Theater Command.
Interesting that in his piece, Jiang doesn’t mention the two establishments.
We must adhere to the principle of the Party first, the cause of the Party first, and the interests of the people first; speak for the Party, worry about the Party, act for the Party and incorporate loving the Party, being concerned about the Party, promoting and protecting the Party into all aspects of ideological and political education of the armed forces. Adhere to the Party’s goal of strengthening the armed in the new era to guide the ideological and political education of the armed forces, unremittingly use Xi Jinping thought on strengthening the army to cast souls, strengthen the service of ideological and political education to ensure the direction of strengthening the army to achieve victories, guide officers and soldiers to strengthen the ‘four consciousnesses,’ ‘four self-confidences’ and achieve the ‘two safeguards’, implement the Chairman Responsibility System’ always listen to the Party’s words, follow the Party, and fight wherever the Party directs. 要坚持党的原则第一、党的事业第一、人民利益第一，在党言党、在党忧党、在党为党，把爱党、忧党、兴党、护党落实到军队思想政治教育的各个环节。坚持用党在新时代的强军目标统领军队思想政治教育，坚持不懈用习近平强军思想铸魂育人，强化思想政治教育服务保证强军打赢指向，引导官兵增强“四个意识”、坚定“四个自信”、做到“两个维护”，贯彻军委主席负责制，永远听党话跟党走，党指向哪里就打到哪里。