Military Ops Other than War - Support for Pvt Sector - Fiscal Reform at Sub-provincial Level - Yang-Sullivan Meeting - Feng Shaolei: US Deliberately Stoking Ideological Confrontation
Here are the stories and pieces that I found noteworthy in the Tuesday, June 14, 2022, edition of the People’s Daily.
Page 1: First, there’s a report (English report) about Xi signing an order to promulgate a trial outline on military operations other than war. The report says that the “outline aims to protect people’s lives and property, safeguard national sovereignty, security and development interest and safeguard world peace and regional stability.” The outline comprises 59 articles in six chapters. It also serves “as a legal base for military operations other than war.” This takes effect on June 15, 2022.
Second, the next piece in the series on following Xi’s footprints. This one focuses on Hunan province.
Third, there’s an article which talks about the Party’s commitment toward the private sector. This starts from Xi’s recent visit to XGIMI optoelectronic company in Sichuan. It reiterates the “two unwaverings.”
The piece references Xi’s comments at a November 2018 symposium on private enterprises. Back then Xi had spoken about the private sector being an “indispensable driving force” for China's development, adding that it can “only grow stronger and cannot be weakened.” He had said that “we need to constantly create a better development environment for the private economy, help to solve the difficulties in the development of the private economy, support the reform and development of private enterprises…” 2018年11月，习近平总书记主持召开民营企业座谈会时指出，在我国经济发展进程中，我们要不断为民营经济营造更好发展环境，帮助民营经济解决发展中的困难，支持民营企业改革发展，变压力为动力，让民营经济创新源泉充分涌流，让民营经济创造活力充分迸发.
After this the piece talks about the recent 33 measures to stabilise the economy that the State Council has announced. It says that these steps have provided timely support for private enterprises. The piece then makes the following points about the policy support provided to private enterprises:
Policies such as tax rebates and fee reductions have eased financial pressures
Policies on rates and loans have eased concerns regarding raising funds
Steps have been taken to reduce operating costs for private enterprises
The piece says that private enterprises have thrived and expanded under Xi’s rule.
“According to statistics, from 2012 to 2021, the number of private enterprises in China increased from 10.857 million to 44.575 million, quadrupling in 10 years, and the proportion of private enterprises in the total number of enterprises increased from 79.4% to 92.1%.” 据统计，2012至2021年，我国民营企业数量从1085.7万户增长到4457.5万户，10年间翻了两番，民营企业在企业总量中的占比由79.4%提高到92.1%.
The piece adds that the list of China's top 500 private firms released by the All-China Federation of Industry and Commerce in September 2021 shows that the entry threshold for the top 500 enterprises reached 23.501 billion yuan, an increase of 3.297 billion yuan year-on-year. There are 98 private enterprises with total assets exceeding 100 billion yuan, an increase of 18 over the previous year. Some private enterprises with leading positions in the industry have established strong international competitiveness. 2021年9月全国工商联发布的中国民营企业500强榜单显示：我国民营企业500强门槛为235.01亿元，比上年增加32.97亿元；资产总额超过千亿规模的民营企业有98家，比上年增加18家。一些具备行业领军地位的民营企业已经形成较强的国际竞争力.
On innovation, it says that the MIIT has cultivated a total of 4,762 little giant enterprises in recent years, and there are more than 40,000 provincial-level “specialised, refined and new” small and medium-sized enterprises. The final section of the piece talks about the factors that inspire the confidence of private firms in China.
Confidence comes from huge market demand
Confidence comes from the space for cooperation across the industrial chain
Confidence comes because of the support of all regions and departments for enterprises
Confidence comes from the potential and resilience of the Chinese economy.
In the explanation for the last point, the piece says that despite the downward pressure on the economy owing to the pandemic, “in 2021, 8.525 million new private enterprises will be established in China, a year-on-year increase of 11.7%. In the first quarter of this year, private investment increased by 8.4% year-on-year, of which private investment in manufacturing increased by 24.8%.”
Fourth, there’s a report about Li Zhanshu’s four-day inspection visit to Heilongjiang. According to PD, Li pointed out that Heilongjiang has conscientiously implemented the environmental protection law and the ecological environment has been significantly improved. Xinhua reports:
“Led by Li, legislators inspected the province's work in implementing the environmental protection law. They also conducted research for the legislation of a law on chernozem soil conservation. During the tour, Li called for efforts to advance the implementation of the law to ensure the CPC Central Committee's decisions and plans are effectively carried out. He noted that the legal system for environmental protection should be continuously improved to ensure that the system's overall effectiveness is enhanced. He also called on local governments, agricultural businesses and workers, and all relevant parties involved to take their due responsibility in conserving the chernozem soil, as it is important for the country's food security, ecological security and the Chinese nation's sustainable development.”
In addition, it’s worth noting that Li inspected the construction of the Shenzhen-Harbin Industrial Park in Harbin New Area and the Tongjiang Sino-Russian Heilongjiang Railway Bridge, which recently opened to traffic.
Finally, there’s this interesting piece talking about ideological and political education in Hunan. The piece features Li Yadong, who teaches ideological and political course material at a primary school in Wenming Yao Autonomous Township. Xi had visited the school in September 2020 (Do watch this video of Xi speaking to the kids). This is the area where the incident that became the story of the half quilt took place. Xi had spoken about the story in his engagement. Anyway, the article tells us that after Xi’s visit Li has been experimenting with new teaching methods, which includes field visits to red sites. Li says that “Red culture should be used to nourish children's minds; ideological and political education should penetrate their eyes, ears, hearts and minds.” 他说：“要用红色文化滋养孩子们的心灵，让思政教育入眼入耳、入脑入心.”
The piece talks about the importance of making good use of red resources in Hunan in order to make ideological and political education more engaging and attractive. For instance, in Rucheng County, there’s a programme to visit a red site, tell the story, provide an explanation and write one’s experience. I guess this is much better than sitting in a classroom and listening to a lecture. The piece also informs that Hunan province has taken the book “Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era Student Reader” - 习近平新时代中国特色社会主义思想学生读本 - as the main line for teaching, and based on this 42 episodes of audio-visual courses on ideological and political topics have been put together. Also, a series of online sessions have been held under the theme I am the Successor - 我是接班人. This has brought outstanding role models, such as tech workers, medical staff, athletes, and sanitation workers, to speak to children.
Page 2: There’s a report (related English report) about the new opinions on promoting fiscal system reform at the sub-provincial levels. This document “is aimed at straightening out fiscal powers and expenditure responsibilities at local levels and inter-governmental revenue division in order to form a standardized fiscal system below the provincial level.”
The article quotes a finance ministry official explaining that the document clarifies reform measures in five areas:
First, clarify the division of fiscal powers at the sub-provincial levels.
Second, moderately strengthen the fiscal power at the provincial level, and moderately strengthen the responsibility at the provincial level for matters that need cross-regional overall coordination or have strong externalities.
Third, expenditure responsibility is now being determined according to the division of fiscal powers.
Fourth, it is necessary to determine the expenditure responsibilities when it comes to common expenditures…It is necessary not only to reduce the pressure of grass-roots expenditure through the mechanism of burden sharing between higher-level and lower-level authorities, but also to give better play the role of common fiscal powers in promoting the equalisation of basic public services through differentiated sharing methods.
Fifth is to implement the expenditure responsibilities of governments at all levels. If greater financial authority really needs to be entrusted to a subordinate/lower-level authority to perform, then the higher-level treasury should arrange the transfer payment funds in full. Subordinate authorities should not be burdened with additional financial pressure owing to the delegation of responsibilities. Higher-level authorities are also not allowed to increase the expenditure responsibility of subordinate authorities in disguised form or shift the expenditure responsibility to them.
一是根据事权属性划分省以下财政事权，避免事权错配造成职能和管理的越位或缺位。二是适度强化省级财政事权，对需要跨区域统筹协调或外部性较强的事务，适度强化省级责任。三是根据财政事权划分明确支出责任，省级财政事权由省级政府承担支出责任，市县级财政支出责任根据其履行的财政事权确定。四是差异化确定共同财政事权支出责任，既要通过上下级共同负担的机制减轻基层支出压力，也要通过差异化的分担办法更好发挥共同财政事权促进基本公共服务均等化的作用。五是落实各级政府的支出责任。上级财政事权确需委托下级履行的，上级财政要足额安排转移支付资金，不能让下级因履行委托事权而额外增加负担，不得变相增加下级支出责任或向下级转嫁支出责任，避免加重基层负担。
On tax revenue sharing, the report says:
“Tax revenue among governments at sub-provincial levels should be straightened out and revenues should be divided based on tax features such as strong mobility in tax base, uneven distribution among regions and large fluctuations in annual revenue. These will be included into the revenue of provincial-level governments or be shared by provincial-level governments in higher proportion, while the tax revenue with stable tax base and obvious geographical features will be defined as revenue at the city and county level or be shared at a higher proportion. To standardise revenue sharing, tax sharing should be clarified among governments at sub-provincial levels and the sharing proportion of various types of tax should be defined appropriately.”
The PD report informs that tax revenue from sectors like finance, electricity, petroleum, railways, and highways can be used as provincial-level revenue, and can also be reasonably distributed among relevant cities and counties.
Reuters’ report on the document says that:
“Local governments would increase spending on education, scientific and technology research, social security, food security, as well as construction of major infrastructure projects, it said. Local governments needed to step up the management of their debts through increasing revenues, cutting costs and selling assets, the cabinet said. China would also improve the debt quota mechanism for local governments, under which their special debt quota should match revenues and project income, it added.”
Page 3: There’s a report about Wang Yi’s engagement with New Zealand Foreign Minister Nanaia Mahuta via video link. Xinhua reports:
“Wang said China has always viewed New Zealand as an important partner with strategic and cooperative significance, and stands ready to work with New Zealand to implement the important consensus reached by the leaders of the two countries. The two sides should carry out the protocol on upgrading the China-New Zealand free trade agreement (FTA) and give full play to the ministerial dialogue on climate change to speed up a green recovery. Underlining that China respects New Zealand's traditional bonds with the Pacific island countries, Wang said China stands ready to work with New Zealand to carry out more three-party or multi-party cooperation to jointly build an open, inclusive, united and cooperative South Pacific region. For her part, Mahuta said New Zealand and China should support the island countries to address the challenges they are facing through bilateral and multilateral platforms.”
Second, there’s an article by Feng Shaolei, Director of the Centre for Co-development with Neighboring Countries, East China Normal University. Fang argues that the Ukraine war has “revealed the main threats to the current international security order.” He argues that NATO’s eastward expansion is what eventually led to the war. And “instead of reflecting on its responsibilities, the US is trying to expand in the Asia-Pacific region and provoke camp confrontation. This practice aggravates the global security governance deficit, and the international community must be highly vigilant.” 美国主导下的北约在欧洲持续扩张，最终酿成危机。美国非但没有反思自身责任，还试图在亚太搞扩张，挑起阵营对抗。这种做法加剧全球安全治理赤字，国际社会必须高度警惕.
He argues that the US has been unable to get past “zero-sum” approaches to international affairs and “Cold War mentality.” For instance, it insisted on promoting NATO's eastward expansion. In addition, the US and NATO “have long ignored the purposes and principles of the UN Charter, and have repeatedly waged wars against foreign countries, seriously damaging the sovereignty and security of other countries and threatening the global security governance system.” 美国和北约还长期无视联合国宪章宗旨和原则，一再对外发动战争，严重损害他国主权和安全，严重威胁全球安全治理体系.
Fang then argues that the US is “deliberately intensifying global ideological confrontation, which is detrimental to world peace and stability.” The example he cites here is the narrative of democracy vs authoritarianism, which he says undermines international trust and cooperation.
He says that unlike the US, China is trying to promote peace talks with regard to the Ukraine war. It has “actively played the role of a responsible major country.” Fang adds that China’s position is “objective and fair, and it is widely appreciated.” He then lashes out at western sanctions, saying that they have had “a serious impact on global development. The rapid rise in commodity prices has seriously impacted the daily lives of people in all countries, especially in developing countries. The global industrial chain is facing more interference, hindering the recovery of the world economy. In this background, China has actively maintained normal and orderly international economic and trade cooperation and advocated that the economic development of all countries should not be damaged through unilateral sanctions. China’s responsible proposition and actions have played an important role in safeguarding the overall situation of international economic cooperation.” 乌克兰危机以及美国等西方国家推出的大规模制裁，正给全球发展造成严重影响. 大宗商品价格快速上涨对各国尤其是发展中国家人民的日常生活造成严重冲击。全球产业链面临更多干扰，阻碍世界经济复苏。在此背景下，中国积极维护正常有序的国际经贸合作，主张各国经济发展不应受单边制裁的破坏. 中国的负责任主张和行动为维护国际经济合作大局发挥了重要作用.
In the final paragraph, Fang says that over time, “the balance of international power has changed rapidly, emerging markets and developing countries have risen as groups, and the trend of multi-polarisation is unstoppable.” This shift necessitates countries to abandon old thinking about ideological and/or civilisational competition and conflict. He says that “based on the concept of building a Community of Shared Future for Mankind, China has promised the Global Security Initiative, and played an important role in resolving international conflicts and bridging differences among parties. Mankind is an indivisible security community. In the transformation of the international security order, we must attach importance to the legitimate and reasonable security concerns of every country, and the international community must work together to protect the peace and tranquillity.” 从更宏阔的历史视野看，过去几十年来，各国转型发展成效各异，国际力量对比迅速变化，新兴市场和发展中国家群体性崛起，世界多极化大势不可阻挡。面对不断变化的国际格局，各国都应调整处理国际事务的思路。个别国家必须抛弃以一种意识形态压制另一种意识形态、以一种文明取代另一种文明的陈旧思维。中国秉持人类命运共同体理念，提出全球安全倡议，为化解国际冲突、弥合各方分歧发挥重要作用。人类是不可分割的安全共同体，国际安全秩序转型必须重视每一个国家的正当合理安全关切，国际社会必须合力守护人类家园的和平安宁。
Finally, although it is not in PD, Yang Jiechi met with Jake Sullivan on Monday in Luxembourg. Xinhua reports:
“The two sides conducted candid, in-depth, and constructive communication on China-U.S. relations, as well as other issues of common concern. The two sides agreed to follow the important consensus reached by the two heads of state, step up contact and dialogue, reduce misunderstanding and miscalculation, and properly manage differences. Both sides agreed that maintaining unimpeded channels for communication is necessary and beneficial.”
Yang said that “the U.S. side has been insisting on further containing and suppressing China in an all-round way. Such acts, instead of helping the United States solve its own problems, have plunged China-U.S. relations into a very difficult situation and severely damaged the exchanges and cooperation in bilateral areas…such a situation conforms neither to the interests of the two sides nor other countries of the world. China-U.S. relations are at a critical crossroads, noted Yang, saying that the three principles proposed by President Xi -- mutual respect, peaceful coexistence, and win-win cooperation -- are the correct approaches for China and the United States in getting along with each other, as the principles conform not only to the fundamental interests of the Chinese and the Americans, but also to the common aspiration of the international community. They ought to be fundamental rules for developing China-U.S. relations.”
“The Chinese side is ready to work together with the U.S. side to explore ways and methods to realize this vision, yet China firmly opposes using competition to define bilateral ties, Yang said. He said the U.S. side should correct its strategic perceptions of China, make the right choices, and translate President Biden's commitments into concrete actions, working together with the Chinese side in the same direction and concretely implementing the important consensus reached by the two heads of state.”
“The Taiwan question concerns the political foundation of China-U.S. relations which, unless handled properly, will have a subversive impact, said the senior Chinese diplomat. The risk does not only exist but will escalate as the United States attempts to contain China with the Taiwan question, and as the Taiwan authorities rely on the United States to seek its ‘independence,’ he added. The U.S. side should not have any misjudgments or illusions, Yang said, adding that it must abide by the one-China principle and the stipulations in the three China-U.S. joint communiques and handle the Taiwan question in a prudent and proper way. Yang also stated China's solemn position on issues concerning Xinjiang, Hong Kong, Tibet, the South China Sea, as well as human rights and religion. He stressed that the U.S. side ought to have benign interactions with the Chinese side and make concerted efforts in promoting prosperity, stability, and development in the Asia-Pacific region.”
Page 4: A report (English report) informing that Sun Chunlan investigated the epidemic prevention and control work in Beijing on Monday. She along with Beijing Secretary Cai Qi visited sites hit by the latest wave of infections - two bars in Chaoyang District.
She also visited the city's headquarters for COVID-19 response, heard a report on coordinated epidemiological investigation efforts, and held a meeting on quickening the implementation of COVID-19 control measures. She stressed adhering to the dynamic zero-COVID approach, focusing on key aspects, and putting in place holistic, science-based and targeted measures in a quick and flexible manner. The quality and efficiency of work in various areas, including epidemiological investigation and transportation and isolation of cases, must be further enhanced, Sun said. (Quick thought: This sounds like a bit of a message to Cai Qi too, I guess.) Noting the complexity of the latest outbreak, Sun urged further city-wide coordination to ensure that control measures are carried out without delay, with priority being given to speed.
She also called for “full-process oversight of nucleic acid testing and thorough and meticulous epidemiological investigation and tracing work to figure out transmission lineages and outbreak sites as soon as possible so as to plug loopholes in a timely manner.” Also, “infection risks should be assessed for each of the sectors that usually see gatherings of people in enclosed sites, among efforts to restore normalcy to work and life in a prudent and safe manner.”
Page 9: On the theory page, the lead piece is by Gao Xiang, Vice President and Member of the Party Committee of the Chinese Academy of Social Sciences. He talks about the importance of grasping the historical initiative in order to make progress going forward. He argues that despite the changes that are taking place, China’s “development is still in a period of important strategic opportunities.” But making the most of this requires cadres to take responsibility and not shirk away from them. “The more our country develops and advances, the greater the resistance and pressure it will encounter. Whether it can overcome this resistance, withstand this pressure, and forge ahead is a big test for party members and cadres,” he argues.
Gao calls on cadres to “strengthen the awareness of urgency, adhere to bottom-line thinking, and be prepared for struggle” going forward. He wants them to nurture foresight and adhere to the “principle of seeking progress while maintaining stability.”
Gao later praises Xi as the People’s Leader - 人民领袖 - for his emphasis on people-centred development, and says that:
“Struggle and creation are the distinctive signs of socialism with Chinese characteristics in the new era. The new era needs a new atmosphere, and more importantly, new achievements. The new era we are in is a great one that inspires people to forge ahead, and the cause of socialism with Chinese characteristics that we are promoting is an unprecedented great cause.” 奋斗与创造是新时代中国特色社会主义的鲜明标识。新时代要有新气象，更要有新作为。我们所处的新时代是催人奋进的伟大时代，我们所推进的中国特色社会主义事业是前无古人的伟大事业.
He adds that “the new era belongs to everyone, and everyone is a witness, pioneer and builder of the new era. General Secretary Xi Jinping has asked Party members and cadres to be doers who act, and not talkers who sit still and talk about things, be strugglers who overcome difficulties…it is hoped that Chinese youth in the new era will have the courage to struggle and create their own wonderful life in the great practice of realising the Chinese dream…” 我们正在从事的中国特色社会主义事业是全体人民的共同事业，新时代属于每一个人，每一个人都是新时代的见证者、开创者、建设者。习近平总书记要求党员干部做起而行之的行动者、不做坐而论道的清谈客，当攻坚克难的奋斗者、不当怕见风雨的泥菩萨；期望新时代中国青年勇于砥砺奋斗，在实现中国梦的伟大实践中创造自己的精彩人生。征途漫漫，惟有不懈奋斗和创造，才能不断夺取新时代中国特色社会主义新胜利。
In the final section, he talks about the significance of Xi’s leadership and the Two Establishments.