Li Qiang Meets Pak Leadership - Foreign Trade Data - China's Diplomacy with Iran & Israel - Support for Private Enterprises
Here are the key reports and articles that I found noteworthy from the People’s Daily’s edition on Tuesday, October 15, 2024.
Page 1: At the top of the page is a report on Xi Jinping’s conversation with his Indonesian counterpart Joko Widodo. Xi told him: “You have made important contributions to the cause of China-Indonesia friendship, and China highly appreciates it. I believe that the new Indonesian government will continue the friendly policy toward China and promote the construction of a community with a shared future between China and Indonesia to a higher level.” 你为中印尼友好事业作出重要贡献，中方表示高度赞赏。相信印尼新一届政府将继承对华友好政策，推动中印尼命运共同体建设持续迈向更高水平.
It adds: “Xi Jinping stressed that China is willing to work with Indonesia to jointly build a high quality BRI, ensure the sustainable operation of the Jakarta-Bandung high-speed railway, create more highlights of cooperation, and make the cooperation between the two countries better benefit the people of the two countries. Next year is the 70th anniversary of the Bandung Conference. China is willing to work with Indonesia to promote the Five Principles of Peaceful Coexistence and the Bandung Spirit, promote unity and cooperation among the Global South countries, safeguard the common interests of the vast number of developing countries, and promote development, prosperity and stability in the region and the world.” 习近平强调，中方愿同印尼高质量共建“一带一路”，做好雅万高铁可持续运营，打造更多合作亮点，让两国合作更好惠及两国人民。明年是万隆会议召开70周年。中方愿同印尼共同弘扬和平共处五项原则和万隆精神，推动全球南方国家团结合作，维护广大发展中国家共同利益，促进地区乃至世界发展、繁荣、稳定.
Next, there’s a brief report on the entire Politburo Standing Committee and Hu Jintao attending the funeral of Wu Bangguo.
Third, there’s a report on Li Qiang’s visit to Pakistan, where he met with Pakistani Prime Minister Shehbaz Sharif.
“Noting that Chinese President Xi Jinping met with Prime Minister Shehbaz in June and further planned the development of China-Pakistan relations, Li said that China has always placed such ties as a priority in its foreign policy and is willing to work with Pakistan to implement the important consensus reached by the two countries’ leaders. China is ready to continuously strengthen strategic coordination and deepen cooperation in various fields, and stride hand in hand with Pakistan on the path of modernization and national rejuvenation, he added. Li pointed out that China firmly supports Pakistan in safeguarding national sovereignty and territorial integrity and taking a development path that suits its national conditions.”
“China is ready to work with Pakistan to build an ‘upgraded version’ of the China-Pakistan Economic Corridor (CPEC), accelerate the construction of major projects in areas such as railways, highways and ports, strengthen industrial integration, deepen practical cooperation in agriculture, mining, information technology, and energy, to ensure the bilateral cooperation benefit the people more broadly, he added. It is hoped that Pakistan will continue to provide a good business environment for Chinese companies and try its best to ensure the safety of Chinese personnel, institutions, and projects in Pakistan, Li said. China firmly supports Pakistan’s counterterrorism effort, and stands ready to actively promote counterterrorism cooperation with Pakistan and help Pakistan strengthen its counterterrorism capacity building, he added. Li also said that China is ready to work closely with Pakistan in multilateral coordination and cooperation, jointly advocate an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization, safeguard peace in Asia, and jointly promote regional development and prosperity.”
The following is attributed to Sharif:
“The unbreakable Pakistan-China friendship has weathered the storm, and the Pakistan-China relations are the cornerstone of Pakistan's foreign policy, he said. Pakistan firmly abides by the one-China principle, firmly supports China's position on issues relating to its core interests such as Taiwan, Xizang, Xinjiang, Hong Kong and the South China Sea, fully supports the three global initiatives proposed by President Xi, and sincerely thanks China for its valuable assistance to Pakistan's development over the years, he added. Shehbaz said that the Pakistani government once again expressed its deep condolences over the recent terrorist attack that claimed the lives of Chinese nationals in Pakistan, and has pledged to do its utmost to hunt down perpetrators, fight terrorism, and ensure the safety of Chinese personnel, institutions, and projects in Pakistan. Pakistan is willing to work with China to create an ‘upgraded version’ of the CPEC within the framework of the Belt and Road Initiative, speed up transport infrastructure connectivity, deepen cooperation in such fields as economy and trade, investment, agriculture, science and technology, mining and renewable energy, strengthen people-to-people exchanges and multilateral coordination, and continue to push forward the building of an even closer Pakistan-China community with a shared future in the new era, he noted.”
A joint statement was issued after the talks and deals around CPEC, livelihood assistance, science and technology, radio and television, test and quarantine, etc, were inked. The two men also attended the completion ceremony of the Gwadar New International Airport project.
Li also met with Pakistan’s entire military leadership, i.e., Chairman of the Joint Chiefs of Staff Committee of the Pakistan Army Sahir Shamshad Mirza, Chief of Army Staff Asim Munir, Chief of Naval Staff Naveed Ashraf and Chief of Air Staff Zaheer Ahmad Babar. This is covered on Page 3. Xinhua reports that Li told them:
“China is willing to work with Pakistan to implement the important consensus reached by the leaders of the two countries, deepen strategic coordination, strengthen mutually beneficial cooperation and bring more benefits to the two peoples … Li pointed out that China firmly supports Pakistan in building a united, stable, prosperous and strong Pakistan, and is willing to continue to provide support and assistance to Pakistan within its capacity and further deepen cooperation with Pakistan in various fields. It is hoped that the two militaries will continue to strengthen cooperation and provide solid support for China-Pakistan friendship and mutually beneficial cooperation, noted Li. China supports Pakistan’s efforts to combat terrorism and stands ready to deepen counterterrorism cooperation with Pakistan, pool counterterrorism efforts among regional countries and jointly safeguard peace and stability of the two countries and the region, Li said.”
The report attributes the following to the Pakistani side. “The Pakistani military will contribute to the promotion of the friendly cooperation between the two countries, take all necessary measures to ensure the safety of Chinese personnel, institutions and projects in Pakistan, and is willing to strengthen defense and security cooperation with China within the bilateral and multilateral frameworks, safeguard the common interests of the two countries, and promote regional peace, stability and development.”
Back to the front page, there is a report on Zhao Leji meeting with President of the Australian Senate Sue Lines. Xinhua says:
“At present, dialogue in various fields between the two countries is being resumed and promoted in an orderly manner, and practical cooperation and people-to-people exchange are also becoming increasingly active, said Zhao, chairman of the National People's Congress (NPC) Standing Committee, adding this is the hard-won result of both sides' joint efforts and should be cherished. Noting that maintaining the right perception of each other is the basic prerequisite for the development of China-Australia relations, Zhao said that China hopes the Australian side will maintain a correct understanding of China, view China's development in an objective and positive way, respect China's core interests and major concerns, and consolidate the political foundation of bilateral relations. He called on the two sides to consolidate cooperation in traditional areas such as energy, mining and agriculture, expand cooperation in emerging areas such as green technology, new energy and artificial intelligence, and promote a fair, open trade and investment environment. The two sides should deepen cooperation in such fields as culture, education and tourism, as well as cooperation at the sub-national level, and actively promote exchange between the young people of the two countries, Zhao added. He said the NPC of China is willing to work with the Australian Senate to focus on implementing the important consensus reached by the leaders of the two countries, strengthen friendly exchange, and exchange experience in governance, legislation and supervision. Zhao said China is willing to share development opportunities with countries such as Australia, promote the global green transition and development, and foster an open world economy.”
Also on the page is a report with foreign trade data for the first three quarters of the year. There’s also a more detailed report on Page 2. I am using data from both of them. It says that:
Goods trade volume expanded to 32.33 trillion yuan (around $4.57 trillion) in the January-September period, reaching a new high.
Exports rose 6.2 percent year on year to 18.62 trillion yuan, while imports climbed 4.1 percent year on year to 13.71 trillion yuan.
Export of mechanical and electrical products was 11.03 trillion yuan, an increase of 8%, accounting for 59.3% of the total export value. Exports of high-end equipment, integrated circuits, automobiles and home appliances rose 43.4 percent, 22 percent, 22.5 percent and 15.5 percent. Export of wind turbines and electric vehicles has increased by 73.9% and 22%, respectively.
Imports and exports of foreign-invested enterprises increased by 1.1 percent
China’s imports of energy products such as crude oil, natural gas and coal reached 901 million tonnes, an increase of 4.8 percent year on year. Metal ore imports totaled 1.14 billion tonnes, an increase of 4.9 percent year on year.
Imports of consumer goods such as specialty fruits, wines, and clothing increased by 7.1%, 28.9% and 6.1%, respectively
Exports to traditional markets such as Europe, the United States and Japan increased by 4.2%, and exports to emerging markets such as ASEAN and Latin America increased by 12.3% and 13.7% respectively.
Trade with BRI countries reached 15.21 trillion yuan, a year-on-year increase of 6.3 percent, accounting for 47.1 percent of the total.
Trade with BRICS countries increased by 5.1 percent year on year; trade with other members of the Regional Comprehensive Economic Partnership grew by 4.5 percent year on year, and that with ASEAN countries rose 9.4 percent.
There’s also a long article on the page discussing the development of literary and artistic work under Xi Jinping. I am not detailing this.
Page 2: There’s a report (English report) informing that CPI was up 0.4 percent year on year in September, lower from a 0.6-percent rise in August. NBS says that on a monthly basis, the CPI remained unchanged compared to the previous month. Food prices rose 3.3 percent year on year in September, an increase of 0.5 percentage points compared to the previous month. Non-food prices were down 0.2 percent, reversing a 0.2-percent uptick in August.
Meanwhile, PPI went down 2.8 percent year on year in September. On a monthly basis, the PPI edged down 0.6 percent, narrowing from a 0.7-percent decrease a month earlier. The price of means of production fell by 0.8%, a decrease of 0.2 percentage point from the previous month; the price of consumer goods changed from flat to a decrease of 0.1%. The downward trend of international oil prices led to a 3.2% decrease in the price of the domestic oil and natural gas extraction industry. From January to September, the average PPI decreased 2 percent from a year ago.
Also on the page is a report about an event being held under the banner: “The Story of the Communist Party of China - The Practice of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era in Northeast China”. This was held in Changchun in Jilin Province. It was co-organised by the ILD and the Party Committees of Inner Mongolia, Liaoning, Jilin, and Heilongjiang. Over 200 political party leaders from more than 50 countries, some foreign diplomats stationed in China, and representatives from foreign businesses in China attended the meeting.
Liu Jianchao spoke about how under Xi Jinping, the Party has adhered to the new development concept and proposed and improved the regional coordinated development strategy. He also talked about Xi’s commitment to the development of the country’s northeast. Liu then said:
“The Communist Party of China is willing to work together with political parties around the world, making inclusiveness and universal benefit the fundamental direction of development, promoting North-South exchanges, deepening South-South cooperation, and striving to address global development imbalances and deficits, ensuring that no country or region is left behind; with the well-being of the people as the core purpose of development, we will promote the joint construction of BRI, implement the three major global initiatives, and let people of all countries share the fruits of development; with bold innovation as the core driving force for development, we will promote technological and institutional innovation, empower traditional industries, illuminate emerging and future industries, and inject more momentum into global prosperity and development.” 中国共产党愿同世界各国政党一道，以普惠包容作为发展的根本方向，促进南北交流，深化南南合作，努力解决全球发展失衡和赤字，不让任何一个国家或区域掉队；以人民福祉作为发展的基本宗旨，推动共建“一带一路”，落实三大全球倡议，让各国人民共享发展成果；以锐意创新作为发展的核心动力，推动科技和制度创新，赋能传统产业，点亮新兴和未来产业，为全球繁荣和发展注入更多动力.
Page 3: Two interesting reports which inform of China’s evolving position on the conflict in the Middle East. Wang Yi spoke to the foreign ministers of Israel and Iran. The call with the Israeli foreign minister was the first conversation at this level between the two sides since October 2023,.
Wang “called for an immediate, complete and permanent ceasefire in Gaza and the release of all hostages.” He also “called for unimpeded access of humanitarian aid to Gaza. Wang said that the international community is deeply worried about the prolonged escalation of conflict in the Middle East. Noting that all lives are equally precious, regardless of nationality or ethnicity, Wang said that the humanitarian disaster in Gaza must end and that countering violence with violence cannot truly address the legitimate concerns of all parties. Pointing out that the conflict in Gaza has once again demonstrated that the Palestinian question remains a core issue in the Middle East, Wang said the voices of the international community are clear, which hope all parties return to the political path of a "two-state solution" as soon as possible. Doing so would realize the peaceful coexistence of Israel and Palestine and the harmonious coexistence of the Jewish and Arab peoples. This is the right way to achieve stability and lasting security for all parties, including Israel, Wang said.”
“Wang said that China is highly concerned about the tension between Israel and Iran and believes that renewed conflict and turmoil in the region serves the interests of no one. Wang stated that China urges all parties to proceed with caution to prevent falling into a vicious circle. He said China is not self-interested in the Middle East and never engages in geopolitical contests. As a permanent member of the United Nations Security Council, China has always stood on the side of peace, international law and truth and will continue to play a constructive role in de-escalating the situation and restoring peace in the region, Wang said. Wang stressed that United Nations Interim Force in Lebanon (UNIFIL) is mandated by Security Council resolutions to carry out peacekeeping missions, adding that the Israeli side should take concrete measures to ensure the safety of UNIFIL personnel.”
The Times of Israel notes that “Foreign Minister Israel Katz has told his Chinese counterpart Wang Yi that Iran is a threat to the Middle East and the entire world.”
“‘We expect that China will express a balanced and fair position in relation to the war that was imposed on Israel,’ says the Israeli readout, ‘which accurately reflects who are terrorist elements in our region and who is the state that protects itself against attacks by those terrorists.’ They discuss the importance of economic cooperation, and Katz notes the 20,000 Chinese workers who remained in Israel during the war. ‘We agreed to continue the relationship and work together to strengthen the ties between the countries based on the long-standing friendship between the Jewish people and the Chinese people,’ says Katz’s office.”
Xinhua’s report on Wang’s call with Iranian Foreign Minister Seyyed Abbas Araghchi has Wang saying that “China will continue to demonstrate a sense of duty as a responsible major country and play a constructive role in promoting the cooling down of the conflict”.
It adds:
“The two sides spoke highly of China-Iran relations, emphasizing a commitment to maintaining exchanges at all levels and promoting practical cooperation. Araghchi said Iran is deeply concerned about the risk of an overall escalation of the current regional situation and does not want to see a further expansion of conflict. Iran highly values China's influence in international affairs and is willing to strengthen communication and coordination with China to cool down the situation through diplomatic means, Araghchi said, adding that Israel should avoid taking risks and proceed cautiously.”
“Wang said that the negative impacts of the current Gaza conflict are clearly spilling over, and regional tensions are escalating continuously. China has always advocated for resolving hotspot issues through dialogue and consultation and opposes exacerbating tensions, expanding conflicts and taking military adventures, Wang said, calling on all parties to make more efforts to safeguard regional peace and stability. Wang said that China will proceed from the merits of the issue, strengthen communication among all parties, build a broader international consensus, and pool the strengths of all parties. Wang said that China is pleased to see the Iranian government carry out mediation diplomacy, enhance understanding with relevant parties and improve relations with regional countries. China supports the historic reconciliation between Iran and Saudi Arabia, and is willing to jointly push for a positive outcome from the second meeting of the China-Iran-Saudi Arabia Trilateral Joint Committee to consolidate the momentum of reconciliation between Iran and Saudi Arabia and inject positive energy into regional peace and stability, Wang added.”
Two other stories to note. First, there was a conversation between Chinese and Russian defense ministers. Dong Jun held talks with his Russian counterpart Andrei Belousov in Beijing on Monday. Xinhua reports:
“Dong said the bilateral relationship featuring high-level mutual trust and intensive cooperation is an exemplary model between major countries. The two militaries should deepen strategic cooperation and enhance the quality and effectiveness of their cooperation, Dong said, adding that both sides should continuously advance the development of military relations, firmly defend the common interests of the two countries, and work together to safeguard global strategic stability. Belousov said that military cooperation between Russia and China is important in safeguarding global and regional peace and stability. The Russian side is willing to work with the Chinese side to continuously carry out efficient cooperation, and jointly address security challenges, said Belousov.”
Second, there’s a report on He Lifeng’s meeting with Achim Steiner, UNDP administrator, in Beijing. He called for China-UNDP cooperation in areas such as rural revitalization, green development, digital economy, South-South cooperation and trilateral cooperation.
Page 6: There’s a report based on a presser yesterday discussing the support for private enterprises. The report informs that China currently has 141,000 specialised and innovative SMEs and 14,600 ‘Little Giant’ enterprises.
‘Wang Jiangping, Vice Minister of the Ministry of Industry and Information Technology, said that in terms of technological innovation, this year, central government funding will support more than 1,000 key ‘Little Giant’ enterprises to create new drivers of growth, tackle new technologies, develop new products, and strengthen the supporting capacity of industrial chains. Through special re-loan projects, more than 1,100 ‘Little Giant’ enterprises will be supported in technical transformation and equipment upgrades. In terms of digital transformation, the second batch of pilot cities for the digital transformation of small and medium-sized enterprises has recently been selected. The central government has allocated 2.7 billion yuan, with more than 12 billion yuan invested by local governments. Next year, another batch of pilot cities will be selected, and it is expected that more than 40,000 small and medium-sized enterprises nationwide will receive support for digital transformation.” 工业和信息化部副部长王江平介绍，在科技创新方面，今年将通过中央财政支持1000多家重点“小巨人”企业打造新动能、攻坚新技术、开发新产品、强化产业链的配套能力。通过专项再贷款项目，支持1100多家“小巨人”企业技术改造和设备更新。在数字化转型方面，近期已遴选第二批中小企业数字化转型试点城市，中央财政下达资金27亿元，地方财政投入超过120亿元，明年将再遴选一批试点城市，预计累计支持全国4万多家中小企业数字化转型。
On financing, the report says:
“The National Financial Regulatory Administration will focus on promoting financial institutions to increase support for the real economy, accelerate the improvement of the coordination mechanism for supporting small and micro-enterprise financing, and help alleviate financing difficulties for small and micro-enterprises. The State Administration for Market Regulation, together with relevant departments, will innovate and implement quality-based financing credit enhancement policies, promoting a credit enhancement mechanism based on enterprises’ technological capabilities and quality qualifications, improving the accessibility and convenience of financing for small and micro-enterprises. The Ministry of Industry and Information Technology will actively provide small and medium-sized enterprises with one-stop services for talent introduction, financing connections, and digital empowerment, effectively helping enterprises reduce costs, improve efficiency, and enhance quality.” 金融监管总局将着力推动金融机构加大对实体经济的支持力度，加快完善支持小微企业融资协调工作机制，帮助缓解小微企业融资困难问题。市场监管总局将会同有关部门创新实施质量融资增信政策，推广以企业技术能力、质量资质等为依据的增信机制，提高小微企业的融资可得性和便利性. 工业和信息化部将积极为中小企业提供人才引进、融资对接、数字化赋能等一站式服务，切实帮助企业降本、增效、提质.
Later the article says:
“The draft law on promoting the private economy, which is currently open for public consultation, is considered an important measure to boost the confidence of private enterprises. Deputy Minister of Justice Hu Weilie said that the draft law on promoting the private economy, for the first time, includes ‘the two unwaverings’ and ‘cultivating and promoting entrepreneurial spirit’ into the law, and clearly states that ‘promoting the sustained, healthy, and high-quality development of the private economy is a major policy that the country will adhere to for the long term.’ This fully demonstrates that promoting the development of the private economy is a fundamental policy that the Party and the country will consistently and persistently uphold. Once these principles are enshrined in law, they will gain stability and binding force, which will certainly promote the sustained, healthy, and high-quality development of the private economy, and create a better environment for the joint development of all types of ownership, including the private economy.” "正在公开征求意见的民营经济促进法草案被认为是提振民企信心的重要举措。胡卫列介绍，民营经济促进法草案第一次将‘两个毫不动摇’‘培育和弘扬企业家精神’等写入法律，并明确‘促进民营经济持续、健康、高质量发展，是国家长期坚持的重大方针政策’，这充分表明促进民营经济发展是党和国家一以贯之并将长期坚持的大政方针。这些内容成为法律制度后就具有了稳定性和刚性约束，必将促进民营经济持续、健康、高质量发展，为包括民营经济在内的各种所有制经济共同发展营造更加良好的环境.
“In response to issues such as local protectionism and market fragmentation, more stringent institutional measures with binding force will be introduced and implemented. The revision of the Anti-Unfair Competition Law of the People’s Republic of China will be accelerated to prevent and curb unfair competition. The implementation of the Fair Competition Review System will be further strengthened, promoting the removal of policies and measures that hinder a unified market and fair competition, thereby unlocking the potential of China’s vast market. Efforts will be made to strengthen comprehensive governance of market order, with a focus on cracking down on illegal activities such as intellectual property infringement, trade secret theft, and the production and sale of counterfeit and substandard goods, in order to enhance business vitality through a well-ordered market environment.” 针对地方保护、市场分割等问题，将出台和实施更有刚性约束的制度措施。加快推进《中华人民共和国反不正当竞争法》的修订进程，预防和制止不正当竞争行为。深入抓好《公平竞争审查条例》实施，推动清理妨碍统一市场和公平竞争的政策措施，进一步释放我国超大规模市场潜力。大力推进市场秩序综合治理，重点整治侵犯知识产权和商业秘密、制售假冒伪劣商品等违法行为，以良好的市场秩序增强企业发展活力.