NDRC on Mobilising Private Investment - Wang-Lavrov Chat - Liu Jianchao on Xi's 'Three Major Global Initiatives' - South China Sea Tensions - US-China People-to-People Ties
Here are the key reports and articles that I found noteworthy from the People’s Daily's edition on Tuesday, August 8, 2023.
Page 1: There’s hardly any newsworthy content on the front page today. So I am going to merely briefly touch upon the articles.
First, there are two articles about the PLA and PAP basically playing their part in flood control and disaster relief. I am not particularly interested in either of these. The broad point is that they are implementing Xi’s instructions and working on the frontlines. Pages 4 and 6 also contain more on flood control efforts.
Second, a report which talks about investments in H1. Some data points:
Since the beginning of this year, 102 major projects identified in the 14th Five-Year Plan have been accelerated, which has effectively promoted the expansion of investment and promoted the overall recovery of economic operation. In H1, infrastructure investment increased by 7.2% year-on-year, driving the total investment to increase by 1.5 percentage points; the investment in projects with a planned total scale of 100 million yuan or more increased by 10.9% year-on-year, 7.1 percentage points higher than the total investment. 今年以来，“十四五”规划102项重大工程等项目加快推进，有力带动了投资扩大，推动经济运行整体回升向好。上半年，基础设施投资同比增长7.2%，拉动全部投资增长1.5个百分点；计划总投资亿元及以上项目投资同比增长10.9%，比全部投资高7.1个百分点.
In H1, the national railway completed FAI of 304.9 billion yuan, a year-on-year increase of 6.9%; clean power investment increased by 40.5% year-on-year, accounting for 86.1% of the total power supply investment; there are 17,600 new water conservancy projects in China, with an investment scale of 720.8 billion yuan, 3,707 and 111.3 billion yuan more than the same period of last year, respectively. 上半年，全国铁路完成固定资产投资3049亿元，同比增长6.9%；清洁电力投资同比增长40.5%，占全部电力供应投资的比重为86.1%；全国新开工水利项目1.76万个、投资规模7208亿元，分别较去年同期多3707个、1113亿元...
In H1, investment in new infrastructure construction increased by 16.2% year-on-year, of which investment in new information infrastructure such as 5G and data centers increased by 13.1%, and investment in new integrated infrastructure, such as industrial Internet and smart transportation increased by 34.1%. 国家统计局投资司司长翟善清表示，上半年，新型基础设施建设投资同比增长16.2%，其中5G、数据中心等信息类新型基础设施投资增长13.1%，工业互联网、智慧交通等融合类新型基础设施投资增长34.1%。
At present, the total investment in intelligent coal mine construction in China is close to 200 billion yuan. 目前，全国煤矿智能化建设投资总规模接近2000亿元.
As of June this year, the cumulative number of charging infrastructure facilities nationwide has reached 6.652 million units, representing a year-on-year growth of 69.8%. 截至今年6月，全国充电基础设施累计数量为665.2万台，同比增长69.8%.
Page 2: There’s a report discussing the latest notice by the NDRC to mobilise private investment. Luo Guosan, Director, Department of Fixed Asset Investment of the NDRC, first discussed the situation of private investment since the 18th Party Congress. He made three points about the significance of private invesmments:
To stabilise overall investment and promote growth: In 2022, private investment reached 31 trillion yuan, nearly doubling from 15.4 trillion yuan in 2012. Since the establishment of private investment statistical indicators in 2012, private investment’s proportion in overall investment has consistently been over half, playing a significant role in stabilising investment growth and promoting economic development.
To ensure job creation: Private investment mechanisms are flexible, market-oriented, and possess strong job-creation capabilities. The proportion of private investment in manufacturing investment has always exceeded 70%, which plays a key role in enhancing the international competitiveness of the manufacturing industry, developing the real economy and creating employment opportunities. In the past two years, private investment in the manufacturing industry has maintained rapid growth, showing strong vitality.
Driving innovation and optimizing economic structure: Private enterprises are good at gathering innovative resources to invest, which plays an important role in promoting economic transformation and upgrading and structural optimization. According to statistics, private enterprises in China are responsible for more than 65% of patents, 75% of technological innovation and 80% of new products.
——稳定投资增长，促进经济发展。2022年，民间投资完成31万亿元，比2012年的15.4万亿元增长了约1倍。自2012年设立民间投资统计指标以来，民间投资占整体投资的比重始终超过一半，为稳定投资增长、促进经济发展发挥了重要作用。——创造就业机会，增强经济活力。民间投资机制灵活、贴近市场，就业吸纳能力强。制造业投资中的民间投资占比始终超过70%，对提升制造业国际竞争力、发展实体经济、创造就业机会等发挥着关键作用。过去两年，制造业民间投资仍保持较快增长，呈现出很强活力。——推动创新发展，优化经济结构。民营企业善于聚集创新资源开展投资，对推动经济转型升级、结构优化具有重要作用。据统计，我国65%的专利、75%以上的技术创新、80%以上的新产品开发由民营企业完成。
“In 2022, private investment increased by 0.9%, accounting for 54.2% of the total investment. In H1, both the growth rate and the proportion of private investment in overall investment has declined. ‘Currently, there is indeed significant pressure on the growth of private investment,’ said Han Zhifeng, deputy director of the Department of FAI at the NDRC. Han believes that the current situation of private investment should be viewed dialectically. On one hand, we must acknowledge the continuous optimization of private investment structures, with several areas showing promising results. ‘In the first half of the year, private investment in manufacturing increased by 8.4% year-on-year, which was 2.4 percentage points higher than the overall manufacturing investment growth; private investment in infrastructure increased by 15.6% year-on-year, which was 8.4 percentage points higher than the overall infrastructure investment growth, demonstrating strong investment confidence and motivation’ said Han. On the other hand, we should clearly understand the main problems faced by private investment at present. Han Zhifeng analyzed that due to factors such as insufficient demand, some enterprises’ confidence has not fully recovered; certain traditional industries have limited growth space, and in emerging industries, some private enterprises might not have a clear view of the development trends and investment directions. In addition, there are still some restrictions for some private enterprises to participate in projects in which they have a strong desire to invest; in terms of resource acquisition, issues like difficult and expensive financing for private enterprises persist, and some projects are constrained by factors such as land and energy utilisation.” 2022年，民间投资增长0.9%，占整体投资比重为54.2%。今年上半年，民间投资增速和占整体投资比重均有所下降。“当前，民间投资增长确实承受较大压力。”国家发展改革委固定资产投资司副司长、一级巡视员韩志峰认为，要辩证看待当前民间投资形势。一方面，要看到民间投资结构持续优化，一些领域显现了不少亮点。“上半年，制造业民间投资同比增长8.4%，比制造业整体投资高出2.4个百分点；基础设施民间投资同比增长15.6%，比基础设施整体投资高出8.4个百分点，呈现出较强的投资信心和投资动力。”韩志峰说。另一方面，要清醒认识到当前民间投资面临的主要问题。韩志峰分析：受需求不足等影响，有的企业信心尚未完全恢复；一些传统行业增长空间受限，而对新兴行业，有的民营企业看不清、把不准发展趋势，投资方向不明；有些民营企业参与投资意愿较强的项目，还存在一些限制；要素获取方面，民营企业融资难、融资贵的问题仍然存在，有的项目还受到用地、用能等要素制约。
The next section discusses the four points that the notice by the NDRC proposes.
It pitches for a “three lists and one platform” 三清单一平台 model. This implies that all localities should put together a list of three types of projects, major national projects and projects to tackle shortcomings, key industrial and supply chain projects, and franchise arrangement projects where users pay the full cost of the service or facility. Also localities must build a unified platform to promote projects to private capital, and publicly release project information through project promotion meetings and platforms to help private capital better understand and participate in project implementation. 《通知》提出，各地方要全面梳理国家重大工程和补短板项目、重点产业链供应链项目、完全使用者付费的特许经营项目等3类项目清单，搭建1个统一的向民间资本推介项目的平台，通过项目推介会和平台等公开发布项目信息，帮助民间资本更好了解和参与项目实施。
The ‘Notice’ proposes that in the fields of transportation, water conservancy, clean energy, new infrastructure, advanced manufacturing, and modern facility agriculture, a group of enterprises with large market space and strong development potential be chosen in line with the requirements of major national strategies and industrial policies, and encourage private capital to actively participate. 针对一些民营企业对投资方向和投资领域拿不准等问题，《通知》提出，在交通、水利、清洁能源、新型基础设施、先进制造业、现代设施农业等领域中，选择一批市场空间大、发展潜力强、符合国家重大战略和产业政策要求的细分行业，鼓励民间资本积极参与。
To tackle problems highlighted by some private enterprises, such as difficulty in financing and insufficient access to factors like land, the ‘Notice’ suggests establishing a national key private investment project database. NDRC authorities will select qualified private investment projects and provide them to relevant financial institutions and departments. This will facilitate coordinating financing and factor security for these projects. At the same time, give full play to the role of the investment-loan linkage mechanism, share information about the preliminary procedures and capital arrangements of private investment projects, and optimize the financing support for private investment projects. In addition, the NDRC will consult the Ministry of Natural Resources to enhance land security for qualified key private investment projects. 针对一些民营企业反映的融资难、土地等要素保障不足等问题，《通知》提出，要建立全国重点民间投资项目库，由发展改革部门筛选出符合条件的民间投资项目，提供给相关金融机构和有关部门，协调加强重点民间投资项目的融资和要素保障。同时，充分发挥投贷联动机制作用，共享民间投资项目前期手续办理与资金安排等信息，优化对民间投资项目的融资支持。此外，国家发展改革委将商请自然资源部，对符合条件的重点民间投资项目加大用地保障力度.
The ‘Notice’ proposes to establish channels to reflect and resolve the problems faced by private enterprises in investment. This entails establishing an online system for reflecting the issues faced by private investment, identifying a specific set of private enterprises for offline contact, conducting in-depth surveys on private investment on a regular basis, collecting information about key problems encountered by private investment such as substituting fines for management, hidden barriers to market access, and unfair treatment in bidding, and accelerate the resolution of these difficult problems, forming a closed-loop management mechanism of ‘collection-feedback-solution’ for problems.” 在问题反映上，搭建线上线下相结合的沟通渠道。《通知》提出，要搭建民间投资问题反映和解决渠道，线上建立民间投资问题反映专栏，线下明确一批定点联系的民营企业、定期开展民间投资深度问卷调查，收集民间投资遇到的以罚代管、市场准入隐性壁垒、招投标不公正待遇等重点问题线索，并加快推动解决这些困难问题，形成问题线索“收集—反馈—解决”的闭环管理机制.
Comment: These four points are useful from a public policy analysis perspective.
They represent significant state intervention in market functioning, and not all of this is called for. There are many less-interventionist policy measures that can be adopted to stimulate private investment.
The first and fourth points are worthwhile government actions to address information asymmetry and market power concentration. These are unlikely to generate market distortions.
In points 2 and 3, the NDRC is clearly talking about picking winners and losers and helping the winners gain greater and easier access to resources. This basically will create more market failures in the long run.
The final section of the article says that infrastructure real estate investment trust funds (infrastructure REITs) are one of the important ways to revitalise stock assets that have been accumulated over time. “Effectively activating these stock assets and creating a beneficial investment cycle is significant for expanding social investment channels, reasonably increasing effective investment, guarding against government debt risks, and reducing corporate debt levels.” “Han Zhifeng said that the NDRC has recommended 35 infrastructure REITs projects to the China Securities Regulatory Commission, including 4 expansion projects. A total of 32 projects (including expansions) have been listed, with a fund size of 97.5 billion yuan.” “盘活存量资产，基础设施不动产投资信托基金（以下简称基础设施REITs）是重要方式之一。”韩志峰介绍，国家发展改革委已向证监会推荐35个基础设施REITs项目，其中包括4个扩募项目；已上市项目共32个（含扩募），发售基金975亿元.
Han added that after initial hesitation, now “private enterprises’ enthusiasm for issuing infrastructure REITs has significantly increased, and the number of application projects has risen noticeably. The main reasons for this are:
In March of this year, the NDRC and the CSRC expanded the scope of issuing infrastructure REITs to include consumer infrastructure. As private enterprises hold a considerable number of shopping centres and department store projects, this expansion provides a foundation for their participation.
The first batch of infrastructure REITs projects has been listed for over two years, enhancing private enterprises' understanding.
Relevant departments have focused on enhancing early-stage guidance to help projects meet application conditions promptly.”
近期，民营企业发行基础设施REITs的热情明显提升、申报项目数量明显增多。在韩志峰看来，主要原因包括：今年3月，国家发展改革委和证监会将发行基础设施REITs的行业领域拓展到消费基础设施，而民营企业持有运营的购物中心、百货商场项目数量较多，为其更好参与奠定了基础；首批基础设施REITs项目上市已两年多，民营企业的认识程度有了提升；有关部门着力加大前期辅导力度，帮助项目尽快具备申报条件。
“The Notice proposes that provincial development and reform commissions should strengthen communication with relevant departments, help private enterprises to implement the conditions for revitalizing existing assets, and support more private investment projects to issue infrastructure REITs. In the next step, private enterprises will be encouraged to optimize their development model, accelerate capital turnover and improve the efficiency of capital use without increasing the debt ratio by revitalizing existing assets, and invest in industries with large development space such as new energy; encourage private enterprises to actively participate in revitalizing the stock assets of state-owned enterprises, and take infrastructure REITs as one of the investment exit channels, and strive to form a win-win situation.《通知》提出，各省级发展改革委与有关部门加强沟通，帮助民营企业落实存量资产盘活条件，支持更多的民间投资项目发行基础设施REITs。下一步，将鼓励民营企业优化发展模式，通过盘活存量资产，在不增加负债率的基础上加速资金周转、提高资金使用效率，投向新能源等发展空间较大的行业领域；鼓励民营企业积极参与盘活国有企业存量资产，并将基础设施REITs作为投资退出渠道之一，努力形成双赢局面。
Page 3: Wang Yi’s chat with Russian Foreign Minister Sergei Lavrov. Xinhua reports:
“Wang noted that since Chinese President Xi Jinping's visit to Russia in March this year, the strategic coordination and pragmatic cooperation between the two countries have made headway. Bilateral trade volume has reached a new high, energy cooperation has been carried out steadily, and personnel exchanges have swiftly resumed. It has been proven that China and Russia are trustworthy and reliable good friends and partners, he said, noting that at present, the priority for both sides is to continue to implement the important consensus reached by the two heads of state and promote the high-level development of the China-Russia comprehensive strategic partnership of coordination for a new era.” 王毅表示，今年3月习近平主席访俄以来，两国战略协作和务实合作都取得新进展，双边贸易额再创新高，能源合作稳步开展，人员往来快速恢复。事实证明，中俄两国是信得过，靠得住的好朋友、好伙伴。当前双方最重要的工作是继续落实好两国元首达成的重要共识，推动中俄新时代全面战略协作伙伴关系继续保持高水平发展.
“Wang said that on the international and multilateral stage, China and Russia continue their close strategic cooperation, advancing the processes of global multipolarity and democratization of international relations, and upholding the fundamental norms of international relations. This is the international responsibility that China and Russia should undertake, and it also embodies the essence of their comprehensive strategic partnership. The BRICS mechanism keeps pace with the trend of the times, demonstrating abundant vitality, while over 20 countries have expressed their willingness to join BRICS, making the process of its expansion smooth and imperative. China is willing to work with Russia and other BRICS partners to support South Africa in hosting the upcoming BRICS Summit and promote the healthy and vigorous development of the BRICS mechanism.” 王毅表示，在国际和多边舞台上，中俄继续紧密战略协作，推进世界多极化、国际关系民主化进程，维护国际关系基本准则，这是中俄应当承担的国际责任，也是中俄全面战略协作伙伴关系的应有之义。金砖国家机制紧跟时代潮流，展现充沛活力，二十多个国家提出希望加入，扩员进程水到渠成、势在必行。中方愿同俄方在内的金砖伙伴共同支持南非办好即将举行的金砖国家领导人会晤，推动金砖机制健康蓬勃地向前发展。
As per Xinhua, Lavrov said: “Russia is willing to further strengthen communication and coordination with China under the multilateral framework of the United Nations, BRICS and the Shanghai Cooperation Organization, oppose hegemony, resist unilateralism, promote the democratization of international relations, and safeguard international equity and justice.”
“The two sides also exchanged views on international and regional issues of common concern, including the Ukraine crisis. Wang emphasized that on any international and multilateral occasion, China will uphold an independent and impartial position, make objective and rational statements, actively promote peace and talks, and strive to seek a political solution to the Ukraine crisis. Lavrov said Russia highly agrees with the position paper put forward by China on the political settlement of the Ukraine crisis, and appreciates and welcomes China playing a constructive role in this regard.” —
Comment: I think it’s worth highlighting that China’s “impartial” position as per the position paper that was issued is fundamentally this: “The security of a country should not be pursued at the expense of others. The security of a region should not be achieved by strengthening or expanding military blocs. The legitimate security interests and concerns of all countries must be taken seriously and addressed properly. There is no simple solution to a complex issue. All parties should, following the vision of common, comprehensive, cooperative and sustainable security and bearing in mind the long-term peace and stability of the world, help forge a balanced, effective and sustainable European security architecture. All parties should oppose the pursuit of one’s own security at the cost of others’ security, prevent bloc confrontation, and work together for peace and stability on the Eurasian Continent.”
Next on the page is an article by Robert Lawrence Kuhn talking about the need for deeper people-to-people and cultural exchanges between the US and China. He writes that:
“President Xi Jinping attaches great importance to and personally promotes the people-to-people friendship between the two countries, which will contribute to the relationship between the two countries returning to the track of healthy and stable development at an early date. Not long ago, President Xi Jinping pointed out during his meeting with Bill Gates that ‘the foundation of China-US relations lies in the people-to-people connection.’ In his congratulatory letter to the Bond with Kuliang: 2023 China-U.S. People-to-People Friendship Forum, President Xi emphasized that ‘amity between the people holds the key to sound relations between countries, and the people are the cornerstone of the growth of state-to-state relations’. President Xi Jinping has high expectations for the friendly relations between the peoples of the two countries.” 习近平主席高度重视并亲自推动两国民间友好，这有助于两国关系早日重回健康稳定发展轨道。不久前，习近平主席在会见美国比尔及梅琳达·盖茨基金会联席主席比尔·盖茨时指出“中美关系的基础在民间”，在向“鼓岭缘”中美民间友好论坛致贺信时强调“国之交在于民相亲”。习近平主席对两国人民友好寄予厚望.
Next, Kuhn makes the point that he met Xi during the Zhejiang week event in New Jersey in 2006, and Xi had then emphasised the importance of cooperation between Zhejiang and New Jersey. In February 2012, he says, Xi visited the US as vice president. He told the Kuliang story during a welcome lunch, calling on everyone to strengthen people to people exchanges and “build a more solid public opinion foundation for China-US mutually beneficial cooperation.” He also visited “old friends in Muscatine, Iowa” and watched the basketball game between the LA Lakers and the Phoenix Suns “with tens of thousands of American fans, and personally promoted the friendship between the two peoples.” 2012年2月，时任中国国家副主席习近平对美国进行正式访问。他在美国友好团体举行的欢迎午宴上讲述鼓岭故事，并表示“我们应该进一步加强中美两国人民的交流，厚植中美互利合作最坚实的民意基础”。他还专程到艾奥瓦州马斯卡廷市看望老朋友，成就了一段大国领导人与美国普通民众友好互动的佳话。离开美国前，他还与上万名美国球迷一道观看洛杉矶湖人队与菲尼克斯太阳队的篮球比赛，身体力行增进两国人民的友谊.
“In 2015, I was invited to attend the opening ceremony of the ‘Sino-US Friendship House’ in Muscatine. This ordinary residence, where President Xi Jinping had stayed, has now become a significant testament to the friendship between the United States and China.” 2015年，我受邀出席马斯卡廷市“中美友谊屋”对外开放仪式。这座习近平主席曾住过的普通民居，已成为美中友谊的重要见证.
He then says that people-to-people and cultural exchanges are an important component of BRI and talks about receiving the China Reform Friendship Medal from Xi in 2018. “I feel that President Xi Jinping attaches great importance to promoting exchanges between China and other countries. With his encouragement, I will continue to tell Chinese stories and let the world understand a comprehensive and authentic picture of contemporary China.” 我感受到习近平主席对增进中国同各国交流的重视。在他的鼓励下，我将继续讲述中国故事，让世界了解一个全面、真实的当代中国.
The final paragraph says this:
“Each of my interactions with President Xi Jinping have made me realize that cultural exchanges are a significant means to foster mutual understanding and cooperation between nations. They also contribute to bridging the emotional gap between the people of the US and China. Both the US and China should fully understand President Xi Jinping’s high expectations for people-to-people and cultural exchanges, and jointly advocate the strengthening of people-to-people and cultural exchanges to promote mutual understanding among the people and the development of relations between countries.” 与习近平主席的一次次交往让我感受到，人文交流是促进国家间理解与合作的重要方式，也有助于拉近美中两国人民的心灵距离。美中两国应充分理解习近平主席对人文交流寄予的厚望，共同倡导加强人文交流，促进民众相知相亲和国家间关系发展.
Brief Comment & Context:
On the face of it, this is a rather banal piece. The author is basically talking about Xi’s comments and engagements with his American friends and the author’s own understanding of the importance that Xi places on people-to-people exchanges. The question, of course, is: who is the target audience for this article and what’s the message he wants to send to them? Writing in the People’s Daily in Chinese, Kuhn isn’t likely trying to reach out to members of the Biden administration or the US Congress, far be it ordinary Americans. While some of them will of course take note of the article, there are better, more direct, means that Kuhn could have used if he wanted to reach them. Another useful bit to note is that Kuhn talks about the need for “both the US and China” to “fully understand President Xi Jinping’s high expectations for people-to-people and cultural exchanges.” This, to me, sounds primarily like a message to the Chinese bureaucracy, offering a nudge to discuss easing travel restrictions and stepping back from warnings. The past month or so has seen an escalation in tensions in this regard.
For instance, here’s the US State Department’s travel advisory for China from June 30, 2023. “Summary: Reconsider travel to Mainland China due to the arbitrary enforcement of local laws, including in relation to exit bans, and the risk of wrongful detentions. Exercise increased caution when traveling to the Hong Kong SAR due to the arbitrary enforcement of local laws. Reconsider travel to the Macau SAR due to a limited ability to provide emergency consular services. Exercise increased caution when traveling to the Macau SAR due to the arbitrary enforcement of local laws. See specific risks and conditions in each jurisdiction.”
The advisory came soon after Daniel Kritenbrink, Assistant Secretary of State for East Asian and Pacific Affairs, told a CSIS event that the two sides had agreed “to look at increasing in a phased manner the number of commercial flights between the United States and China.” He had added: “There were about 350 flights a week between the U.S. and China prior to the coronavirus outbreak, compared to 24 a week currently”
Following the US’s advisory, China’s foreign ministry issued an advisory saying “Chinese nationals who travel to the US should be more vigilant, and beware of falling into US snares and arrest-entrapment.” SCMP’s report then had said that “While Beijing has regularly reminded its citizens of gun and racial violence in the US, it is rare to explicitly point out the danger of arbitrary detention. China itself has frequently been charged of such detentions of its own people. It’s also faced accusations of running extraterritorial police operations to go after Chinese individuals – something the government denies.” This came in the context of the June 23 US Department of Justice announcement that it had arrested eight executives and employees of four different Chinese pharmaceutical companies for allegedly importing “fentanyl precursor chemicals” into New York.
Finally, there’s an article by the Chinese ambassador to Mexico. Zhang Run writes that “Mexico has played a crucial role in the co-construction of BRI between China and Latin America…The two sides have always supported each other's development path in line with their national conditions, respected each other's core interests and major concerns, and continuously strengthened policy communication.” 作为拉美大国，墨西哥在中拉共建“一带一路”中发挥了重要作用...双方始终支持对方走符合本国国情的发展道路，尊重彼此核心利益和重大关切，政策沟通不断加强.
Some of the cooperation highlights he mentions are:
Chinese-funded companies participating in the construction of the Mayan Train project
The opening of the first direct freight route from mainland China to Latin America from Wuhan to Mexico City
Use of Chinese light rail trains in the industrial town of Monterrey
Investments in 5G and cloud technology
Over the years, China has remained Mexico's second-largest trading partner, while Mexico is China's second-largest trading partner in Latin America
The first Sino-Mexican industrial park, Huafu Shan Industrial Park, has been established in Mexico, and multiple Chinese automotive parts manufacturing companies have invested in Mexico.
The two countries have formed more than 30 pairs of sister provinces and cities.
He ends with this:
“Both China and Mexico are developing countries that are at a crucial stage of development and rejuvenation. China is ready to work with Mexico to deepen political mutual trust, strengthen strategic alignment, expand mutually beneficial cooperation, push the China-Mexico comprehensive strategic partnership to a new level, provide new development opportunities for Mexico and other Latin American countries, and jointly build a better world.” 志合者，不以山海为远。中墨同为发展中国家，都处在发展振兴的关键阶段。中方愿同墨方深化政治互信，加强战略对接，拓展互利合作，推动中墨全面战略伙伴关系再上新台阶，为包括墨西哥在内的拉美各国提供发展新机遇，携手建设更加美好的世界.
Page 9: There’s a long piece by ILD chief Liu Jianchao on Xi Jinping’s three global initiatives. This has been a key part of my research work, so I am looking forward to reading through the article.
He writes that GDI, GSI and GCI have “formed an organic whole”; these along with the concept of building a community with a shared future for mankind are based in the context of the once-in-a-century and conform to the trend of human development and progress. They provide a clear direction for a world at a crossroads, have enriched and developed Xi Jinping Thought on Diplomacy, fully reflecting the profound historical perspective, broad global vision, and strong sense of mission of the Communist Party of China led by Comrade Xi Jinping as its main representative. We must deeply grasp the internal relationship between the concept of building a community with a shared future for mankind and the ‘three major global initiatives’, deeply understand their scientific connotation and significance, and strive to create a new situation in major country diplomacy with Chinese characteristics.” 至此，全球发展倡议、全球安全倡议、全球文明倡议形成有机整体。构建人类命运共同体理念和“三大全球倡议”，立足百年变局，顺应人类发展进步潮流，为处于十字路口的世界指明了前进方向，丰富和发展了习近平外交思想，充分体现了以习近平同志为主要代表的中国共产党人深邃的历史眼光、宽广的全球视野、强烈的使命担当。我们要深刻把握构建人类命运共同体理念和“三大全球倡议”的内在关系，深刻理解其科学内涵和重大意义，努力开创中国特色大国外交新局面.
He adds that the three initiatives “together constitute the ‘three pillars’ of the building of a community with a shared future for mankind.”
“In the magnificent and long course of human history, different civilizations exchanged and converged with each other from time to time, rushing forward together. With the continuous progress of human society and the in-depth development of economic globalization, countries around the world are increasingly interconnected and interdependent, and have increasingly come to form a community of common destiny sharing weal and woe. At the same time, it is generally recognized that material wealth, peace and stability and spiritual wealth are the fundamental pursuits of human social development. These three aspects correspond respectively to development, security, and civilization, mutually promoting and supporting one another. “When the granaries are full, one will know the etiquette; when clothing and food are abundant, one will know honour and disgrace’ (仓廪实而知礼节，衣食足而知荣辱). Development is the foundation of security and civilization. Only when all countries prosper and develop can peace last and civilization progress. ‘In a well-governed country, there is prosperity; when there is disorder/chaos, there is poverty’ (治国常富，而乱国常贫). Security is the premise for development and civilization. Without a peaceful and stable environment, development and civilization will lose their guarantee. ‘When people are courteous, there is peace; when they lack courtesy, there is danger’ (人有礼则安，无礼则危). Civilization is the sublimation of development and security. As a deep spiritual pursuit and historical accumulation, civilization affects people’s thinking and behavioral habits, providing spiritual support for development and security. 在波澜壮阔的人类历史长河中，不同文明相互交流交汇、共同奔涌向前。随着人类社会不断进步和经济全球化深入发展，世界各国相互联系、相互依存程度不断加深，越来越成为休戚与共的命运共同体。同时，人们普遍认识到，物质丰富、和平稳定、精神富有是人类社会发展的基本追求。这三方面分别对应发展、安全、文明，相互促进、彼此支撑。 “仓廪实而知礼节，衣食足而知荣辱。” 发展是安全和文明的基础，只有各国繁荣发展，和平才能持久，文明才能进步； “治国常富，而乱国常贫。” 安全是发展和文明的前提，如果没有和平稳定的环境，发展和文明就会失去保障； “人有礼则安，无礼则危。”文明是发展和安全的升华，作为深层的精神追求和历史积淀，文明以润物无声、潜移默化的方式影响着人的思维和行为习惯，为发展和安全提供精神支撑.
“The ‘Three Major Global Initiatives’ point out the direction of human society from three dimensions: development, security and civilization, and they echo and complement each other, providing solid support for promoting the construction of a Community of Shared Future for Mankind. The Global Development Initiative clearly answers the question of ‘What kind of development concept human beings need and how to realise global development’ from the perspective of development, laying the material foundation for the construction of a community with a shared future for mankind. The Global Security Initiative clearly answers the world dilemma of ‘What kind of security concept do human beings need and how to achieve universal security’ from the angle of security, establishing the security basis for the construction of a community with a shared future for mankind. The Global Civilization Initiative has clearly answered the historical puzzle of ‘what kind of civilization concept human beings need and how to realise mutual learning’ from the perspective of civilization, solidifying the foundation of civilization for the construction of a community with a shared future for mankind.” “三大全球倡议”从发展、安全、文明三个维度指明人类社会前进方向，彼此呼应、相辅相成，为推动构建人类命运共同体提供了坚实支撑。全球发展倡议从发展维度明确回答了“人类需要什么样的发展理念、怎样实现全球发展”的时代之问，为推动构建人类命运共同体提供了物质之基。全球安全倡议从安全维度明确回答了“人类需要什么样的安全理念、怎样实现普遍安全”的世界之困，为推动构建人类命运共同体打造了安全之基。全球文明倡议从文明维度明确回答了“人类需要什么样的文明理念、怎样实现交流互鉴”的历史之惑，为推动构建人类命运共同体夯实了文明之基.
In the second part, Liu writes:
“At present, changes in the world, times and history are unfolding in an unprecedented manner. The global economic recovery is fragile and weak, various security challenges are emerging one after another, misunderstandings, estrangements and conflicts among different civilizations still exist, and the global peace deficit, development deficit, security deficit and governance deficit are increasing. The world has entered a new period of turbulence and volatility, and mankind once again stands at the crossroads of history. The choice of which way to go depends on the choice of the people of all countries. At this critical juncture in history, General Secretary Xi Jinping has demonstrated foresight by advocating for the concept of building a community with a shared future for humanity, guiding the direction of the world, and providing a blueprint/action plan with the ‘Three Major Global Initiatives,’ seeking solutions to the outstanding problems facing mankind today, and encouraging all countries in the world to join hands with their peers in the right path. 当前，世界之变、时代之变、历史之变正以前所未有的方式展开。全球经济复苏脆弱乏力，各种安全挑战层出不穷，不同文明间的误解、隔阂和冲突依然存在，全球范围内和平赤字、发展赤字、安全赤字、治理赤字不断加重。世界进入新的动荡变革期，人类又一次站在历史的十字路口，何去何从取决于各国人民的抉择。在这一重大历史关头，习近平总书记高瞻远瞩，以构建人类命运共同体理念为总纲，引领世界前进方向，以“三大全球倡议”为行动方案，针对当今人类面临的突出问题寻求破解之道，推动世界各国携手同行人间正道。
He then adds that the three major global initiatives have “precisely grasped the fundamental contradictions and main issues facing the world today”, offering a “three-dose medicine/prescription” with clear direction and clear thinking, reflecting their problem orientation. GDI effectively responds to the strong aspiration and urgent need of the international community, especially developing countries, to speed up economic development. It focuses on addressing the problems of unbalanced and inadequate development among and within countries, and charts the course for advancing global development and world development cooperation. China is committed to taking concrete actions to promote the implementation of GDI, help the international community accelerate the implementation of the United Nations 2030 Agenda for Sustainable Development, and inject strong impetus into global economic growth. Focussing on issues such as war and conflict, peace and stability, GSI has clarified the practical path of global security governance. It not only provides scientific guidelines for addressing global security challenges facing mankind, but also contributes feasible solutions to current regional hotspot issues and geopolitical conflicts. China's successful mediation of the rapprochement between Saudi Arabia and Iran and its commitment to promoting peace talks and political settlement of the Ukraine crisis are all vivid examples of China's practice of GSI and response to security challenges. Focussing on the problems of estrangement and misunderstanding, tolerance and mutual trust, GCI not only fully respects the objective reality of the diversity of civilizations, but also strives to seek the greatest common denominator among all civilizations, so as to realize the dialectical unity of the diversity and commonality of civilizations. It not only attaches importance to the inheritance of civilizations, emphasises the traditional heritage of different civilizations but also emphasises drawing lessons from history and the exploration of the contemporary value of each country's historical culture. On this basis, it seeks to actively build a global network of dialogue among civilizations, strengthen international people-to-people exchanges and cooperation, promote mutual understanding and friendship between peoples of different countries, and constantly build consensus on exchanges and mutual learning among civilizations. “三大全球倡议”围绕构建人类命运共同体理念这个整体性构想，紧紧抓住当今世界的基本矛盾及其主要症结，给出了指向明确、思路清晰的“三剂良方”，体现出鲜明的问题导向。全球发展倡议针对人类生存发展和国家现代化等问题，有效回应了国际社会特别是广大发展中国家加快经济发展的强烈愿望和迫切需求，并着眼破解国家间和各国内部发展不平衡、不充分问题，为推进全球发展事业和世界发展合作指明了方向。中国坚持以实际行动推动全球发展倡议落地落实，助力国际社会加快落实联合国2030年可持续发展议程，为全球经济增长注入强劲动力。全球安全倡议针对战争与冲突、和平与稳定等问题，明晰了全球安全治理的实践路径，既为应对人类面临的全球性安全挑战提供了科学指南，也为解决当前地区热点问题和地缘政治冲突贡献了可行方案。中国成功斡旋沙特和伊朗和解，坚持劝和促谈推动乌克兰危机的政治解决等，都是践行全球安全倡议、应对安全难题的生动案例。全球文明倡议针对隔阂与误解、包容与互信等问题，既充分尊重文明多样性的客观现实，又努力寻求各种文明间的最大公约数，以实现文明多元与文明共通的辩证统一；既重视文明传承，强调不同文明的传统底蕴，又鉴往知来，强调挖掘各国历史文化的时代价值，并在此基础上积极构建全球文明对话网络，加强国际人文交流合作，促进各国人民相知相亲，不断凝聚文明交流互鉴的共识.
In the next bit, Liu argues that the three initiatives “provide a methodological basis for implementing the worldview of contemporary China and Chinese Communists in the new era, demonstrating the organic integration of worldview and methodology.” “The concept of Community of Shared Future for Mankind Idea and Three ‘Major Global Initiatives’ are based on dialectical materialism and historical materialism, which not only profoundly reveal the law and direction of human social development, but also provide scientific methods and paths for the progress of human society, demonstrating the powerful force of truth and embodying a distinct scientific nature. 构建人类命运共同体理念和“三大全球倡议”以辩证唯物主义和历史唯物主义为理论基础，既深刻揭示了人类社会发展的规律和方向，又为人类社会进步提供了科学的方法和路径，彰显了强大真理力量，体现出鲜明的科学性.
He further adds that these initiatives are “based on the aspirations of people all over the world for a better life.” In the final bit of the article, Liu argues that the concept of the community of shared future for mankind and the three initiatives are “rooted in Chinese civilization and jointly lead the theoretical innovation of international relations in the new era.”
He writes that “traditional Western theories of international relations tend to observe the world from the perspective of power, status and geopolitics; theories like the ‘hegemonic stability theory’ and ‘clash of civilizations theory’ all reflect strong exclusionary thinking. The core essence of the concept of building a community with a shared future for humanity and the ‘Three Major Global Initiatives’ not only inherits the lineage of Chinese civilization but also aligns closely with the UN Charter, which promotes friendly relations based on sovereignty equality and respecting the equal rights of people of all countries, and emphasizes collective and peaceful methods to maintain international security and cooperation to address global economic, social, and cultural issues. Together, they constitute the creative and innovative expression of oriental wisdom in the theory of international relations, which provides a new perspective and paradigm for human beings to think about the way of getting along with each other and solve global challenges. Based on this, method of thought embodied in the concept of community of shared future for mankind and the Three Major Global Initiatives is essentially different from the traditional western theory of international relations, which fully demonstrates that China will never follow the old path of hegemony when a country becomes strong, nor will it engage in hegemonism or power politics. It will never seek its own security at the expense of the security of others, nor will it incite division and confrontation. It will not engage in forming small circles ‘uniting with those of the same views while alienating those with different views’. Instead, it will always firmly be a builder of world peace, a contributor to global development and a defender of international order.” 西方传统国际关系理论惯于从实力地位、地缘政治等视角观察世界，“霸权稳定论”“文明冲突论”等都体现出强烈的排他性思维。构建人类命运共同体理念和“三大全球倡议”的核心要义既与中华文明一脉相承，又同联合国宪章以主权平等、尊重各国人民平等权利为基础发展友好关系，以集体和和平方法维护国际安全，以国际合作推动解决各国间经济、社会、文化问题等宗旨和原则高度契合，共同构成东方智慧在国际关系理论上的创造性、创新性表达，为人类思考国与国相处之道、解决全球性挑战提供了新的视角和范式。基于此，构建人类命运共同体理念和“三大全球倡议”所体现的思维方式与西方传统国际关系理论存在本质区别，充分表明中国永远不会走国强必霸的老路，不会搞霸权主义和强权政治那一套，不会以牺牲别国安全为代价保障自身安全，不会挑动分裂对抗，不会搞“党同伐异”的小圈子，而是始终坚定做世界和平的建设者、全球发展的贡献者、国际秩序的维护者.
Page 12: There’s a report on MoFA’s comments criticising the US for its statement on the tensions between China and the Philippines around the Second Thomas Shoal in the South China Sea. On August 5, the Philippines said China's coast guard used water cannons and “dangerous” moves to prevent Manila from sending supplies to its troops occupying the reef. Soon after, the US State Department issued a statement saying that:
“Firing water cannons and employing unsafe blocking maneuvers, PRC ships interfered with the Philippines’ lawful exercise of high seas freedom of navigation and jeopardized the safety of the Philippine vessels and crew. Such actions by the PRC are inconsistent with international law and are the latest in repeated threats to the status quo in the South China Sea, directly threatening regional peace and stability. By impeding necessary provisions from reaching the Filipino servicemembers stationed at Second Thomas Shoal, the PRC has also undertaken unwarranted interference in lawful Philippine maritime operations.”
It also said: “The United States reaffirms an armed attack on Philippine public vessels, aircraft, and armed forces—including those of its Coast Guard in the South China Sea—would invoke U.S. mutual defense commitments under Article IV of the 1951 U.S. Philippines Mutual Defense Treaty.”
In response, China’s MoFA said:
“The Chinese Foreign Ministry has lodged serious démarches to the Philippines. I would like to stress that Ren’ai Jiao is part of China’s Nansha Qundao. The Philippines explicitly promised several times to tow away the military vessel deliberately and illegally “grounded” at Ren’ai Jiao. However, 24 years have passed and instead of towing it away, the Philippines has sought to repair and reinforce it on a large scale in order to permanently occupy Ren’ai Jiao. The Philippines’ action gravely violates international law and the Declaration on the Conduct of Parties in the South China Sea (DOC) signed between China and ASEAN countries. China once again urges the Philippines to immediately tow away the military vessel “grounded” at Ren’ai Jiao and restore Ren’ai Jiao to its original state of having no personnel or facility on it. The so-called South China Sea arbitration award violates international law, including UNCLOS. The award is illegal, null and void. China does not accept or recognize it, and will never accept any claim or action based on the award. This position is clear and firm, and is a legitimate step to uphold international rule of law. For some time, China has repeatedly communicated with the Philippines through diplomatic channels on Ren’ai Jiao. We made it clear to the Philippines that it must not send construction materials meant for repairing and reinforcing the “grounded” military vessel on a large scale, and we suggested that the two sides hold talks as soon as possible ways to manage the situation at Ren’ai Jiao. The Philippines, however, chose to ignore China’s goodwill and sincerity and went ahead with sending construction materials for repairing and reinforcing the “grounded” military vessel on a large scale. This is the cause of what happened there this time. China Coast Guard responded in accordance with the law to safeguard China’s sovereignty and maritime rights and interests. The maneuvers were professional, restrained and beyond reproach. The Philippines is China’s important maritime neighbor. Important common understandings exist between our two sides on managing maritime disputes. China stands ready to continue to work with the Philippines to properly handle maritime issues through dialogue and consultation and jointly uphold bilateral relations and maritime stability.”
It also said:
“The State Department’s statement, in disregard of the facts, attacked China’s legitimate and lawful actions at sea aimed at safeguarding its rights and enforcing the law. The statement also voiced support for the Philippines’ unlawful, provocative behavior. China firmly opposes the statement. For some time, the US has been inciting and supporting the Philippines attempts to repair and reinforce its warship that was deliberately "grounded" on Ren’ai Jiao. The US even sent over military aircraft and vessels to assist and support the Philippines, and repeatedly sought to threaten China by citing the US Philippines Mutual Defense Treaty. The US has been brazenly bolstering the Philippines as it infringes upon China’s sovereignty, but those moves will not succeed. The South China Sea arbitration was a pure political drama staged in the name of the law with the US pulling strings behind the scenes. The so-called award contravenes international laws, including UNCLOS, and is illegal, null and void. The US’s attempt to make an issue of the illegal award will not affect China’s firm resolve to safeguard its territorial sovereignty, maritime rights and interests in accordance with the law. We urge the US to stop utilizing the South China Sea issue to sow confusion and discord, and we urge it to respect China’s territorial sovereignty, maritime rights and interests in the South China Sea, and respect regional countries’ efforts to uphold peace and stability in this region.”