No More Indo-Pacific? - Services Trade Pitch - China's Legislature Outreach - NPC Session Updates
Hi folks,
A couple of things to share before we get to today’s edition. First, I had the pleasure of being on Jordan Schneider’s awesome ChinaTalk podcast along with James Crabtree, discussing the recent churn in the India-US-China triangle. Do check it out below:
Also, The Hindu Group in India has just published an excellent new volume, featuring the smartest Indian perspectives on China. There are some excellent chapters discussing the country’s rise, its approach to trade, its technology ecosystem and more. My chapter looks at politics and history. Digital copies are now available. Please do check it out.
Here are the key reports and articles that I found noteworthy from the People’s Daily’s edition on Thursday, September 11, 2025.
Page 1: Let’s begin with two reports on the Global Trade in Services Summit of the 2025 China International Fair for Trade in Services. First, there’s a report on Xi Jinping’s letter to the summit. Xi said:
“Xi Jinping pointed out that at present, the world economic structure is undergoing profound changes, with both development challenges and opportunities coexisting with each other. China will unswervingly expand high-level opening to the outside world, actively dock with international high-standard economic and trade rules, accelerate pilot programs in platforms such as free trade pilot zones and national service trade innovation and development demonstration zones, promote in an orderly manner the opening of the service market, and promote high-quality development of trade in services. China is willing to, together with all parties, advance the open and innovative cooperation of global trade in services, build an open world economy, and continuously inject new impetus into building a community with a shared future for mankind.” 习近平指出，当前，世界经济格局深刻变化，全球发展挑战与机遇并存。中国将坚定不移扩大高水平对外开放，积极对接国际高标准经贸规则，加快在自由贸易试验区、国家服务贸易创新发展示范区等平台先行先试，有序推进服务市场开放，推动服务贸易高质量发展。中国愿同各方一道，携手推进全球服务贸易开放创新合作，建设开放型世界经济，为构建人类命运共同体不断注入新动力.
Beijing Party Secretary Yin Li read out Xi’s letter. The keynote speaker for the day was Ding Xuexiang. He said:
“Faced with the obvious rise of unilateralism and protectionism, China is steadily advancing institutional opening in trade in services, raising the level of facilitation, promoting new progress and new results in the high-quality development of trade in services. This is not only providing a strong driving force for China’s own development, but also opening up growth space for the world economy.” 面对单边主义、保护主义明显上升，中国稳步推进服务贸易制度型开放，提升便利化水平，推动服务贸易高质量发展取得新进展新成效，既为自身发展提供了强劲动力，也为世界经济开拓了增长空间.
He then put forward three propositions:
First, adhere to high-level opening-up: strengthen rule alignment and regulatory coordination, reduce barriers to services trade, and create a favourable environment for the development of services trade.
Second, adhere to all-round innovation: adapt to the development trends of digitalisation, networking, and intelligentization, strengthen international cooperation in areas such as AI and big data, and promote the quality and upgrading of services trade.
Third, adhere to mutual benefit and win-win results: promote the negotiation and signing of more high-standard free trade agreements, and promote common prosperity through mutually beneficial cooperation in services trade.
丁薛祥表示，中国愿同各国各方一道努力，深化服务贸易开放合作，促进国际贸易和世界经济增长。他提出3点建议：一是坚持高水平开放，加强规则对接和规制协调，减少服务贸易壁垒，营造服务贸易发展良好环境。二是坚持全方位创新，顺应数字化、网络化、智能化发展趋势，加强人工智能、大数据等领域国际合作，促进服务贸易发展提质升级。三是坚持互利共赢，推动商签更多高标准自贸协定，以服务贸易互惠合作促进共同繁荣.
Next, there’s a report on the second plenary session of the 17th session of the 14th NPCSC. Some key points:
The meeting heard a report from Zheng Jianbang, NPCSC Vice Chairman, on the implementation of the Trade Union Law by the Standing Committee’s Law Enforcement Inspection Group. The report covered the overall implementation of the Trade Union Law, the difficulties and problems encountered in its implementation, and offered recommendations for further comprehensive and effective implementation: Give play to the political role of trade unions, and manifest their role in serving the centre; focus efforts on consolidating foundations and strengthening the base, strengthen grassroots trade union organization construction; perfect the long-term effective mechanism for rights protection, earnestly safeguard the legitimate rights and interests of workers; improve the system for serving workers, build the ‘workers’ home’ in the hearts of workers; closely align with the requirements for developing new quality productive forces, deepen the construction of the industrial worker team; standardise the management and use of funds and continuously strengthen the operational support for trade union work; improve the trade union legal system and enhance the legalisation of trade union work. 会议听取了全国人大常委会副委员长郑建邦作的常委会执法检查组关于检查工会法实施情况的报告。报告指出，党的十八大以来，各地各部门认真贯彻落实工会法，持续提升工会工作法治化水平，取得明显成效。报告介绍了工会法贯彻实施的总体情况、法律实施中存在的困难和问题，并就进一步全面有效实施工会法提出建议：发挥工会政治作用，在服务中心大局中彰显作为；着力固本强基，加强基层工会组织建设；完善维权长效机制，切实维护职工合法权益；健全服务职工体系，打造职工心中的“职工之家”；紧扣发展新质生产力要求，深化产业工人队伍建设；规范经费管理使用，不断加强工会工作运行保障；完善工会法律体系，提高工会工作法治化水平.
Zheng Shanjie, NDRC Chairman, delivered a report on the implementation of the national economic and social development plan so far this year. “The report pointed out that since the beginning of this year, the plan execution situation has been relatively good overall. In the first half of the year, China’s economy maintained a momentum of recovery and improvement, high-quality development achieved new results, domestic demand continuously expanded, the development pace of new quality productive forces accelerated, reform and opening up continuously deepened, and the overall social situation remained stable. In the second half of the year, we must implement well the various policy measures deployed by the Party Central Committee, continuously release domestic demand potential, further promote the deep integration of technological innovation and industrial innovation, unwaveringly deepen reform and expand opening up, continuously make efforts to prevent and resolve risks in key areas, comprehensively advance regional coordinated development and urban-rural integrated development, promote green low-carbon development through comprehensive transformation with dual control of carbon emissions, take multiple measures simultaneously to guarantee and improve people's livelihood, and strengthen security capacity building in key areas. 受国务院委托，国家发展和改革委员会主任郑栅洁作了关于今年以来国民经济和社会发展计划执行情况的报告。报告指出，今年以来，计划执行情况总体较好，上半年我国经济保持回升向好态势，高质量发展取得新成效，国内需求持续扩大，新质生产力发展步伐加快，改革开放不断深化，社会大局保持稳定。下半年要实施好党中央部署的各项政策措施，不断释放内需潜力，进一步推动科技创新和产业创新深度融合，坚定不移深化改革扩大开放，持续用力防范化解重点领域风险，全面推进区域协调发展和城乡融合发展，以碳排放双控全面转型推动绿色低碳发展，多措并举保障改善民生，加强重点领域安全能力建设.
Minister of Finance Lan Fo’an made a report on the budget execution situation since the beginning of this year. The report pointed out that since the beginning of this year, fiscal policy has been more proactive and continued to exert force, and budget execution and fiscal operations have been generally stable overall. The report introduced the situation of implementing the budget resolution of the Third Session of the 14th NPC, and put forward the next step fiscal key work arrangements: make good and full use of a more proactive fiscal policy, make every effort to support stabilising employment and foreign trade, accelerate the cultivation and growth of new drivers of development, further safeguard and improve people’s livelihood, continue making efforts to prevent and resolve risks in key areas, continuously raise the effectiveness and level of fiscal governance, and strictly implement the requirements of living frugally. 受国务院委托，财政部部长蓝佛安作了关于今年以来预算执行情况的报告。报告指出，今年以来，财政政策更加积极、接续发力，预算执行和财政运行总体平稳。报告介绍了落实十四届全国人大三次会议预算决议情况，提出下一步财政重点工作安排：用好用足更加积极的财政政策，全力支持稳就业稳外贸，加快培育壮大发展新动能，进一步保障和改善民生，持续用力防范化解重点领域风险，不断提升财政治理效能和水平，严格落实过紧日子要求.
In addition, Lan made a report on the government debt management in 2024. The meeting heard a supervisory research report on the government debt management in 2024 by Xu Hongcai, Vice Chairman of the Financial and Economic Affairs Committee of the NPC and Director of the Budget Work Committee of the Standing Committee. 受国务院委托，蓝佛安作了关于2024年度政府债务管理情况的报告。会议听取了全国人大财政经济委员会副主任委员、常委会预算工作委员会主任许宏才作的关于2024年度政府债务管理情况的监督调研报告.
Another report informs that as per the Ministry of Natural Resources:
China’s total cultivated land area reached 1.94 billion mu at the end of 2024, an increase of 28 million mu from 2020.
Forestland, grassland, and wetland areas reached 4.253 billion mu, 3.912 billion mu, and 834 million mu, respectively.
The national forest coverage rate reached 25.09%, an increase of approximately 2 percentage points from 2020.
Finally, there’s a brief report on China’s first offshore carbon capture and storage demonstration project hitting a significant milestone. China National Offshore Oil Corporation (CNOOC) on Wednesday said that the project, located in the Pearl River Estuary basin, South China's Guangdong Province, has achieved a cumulative carbon storage volume of over 100 million cubic meters.
“The achievement marks that China’s offshore carbon dioxide storage technology, equipment, and engineering capability have reached maturity. This is of great significance for accelerating the realization of the national ‘dual carbon’ goals and promoting the green and low-carbon transformation of the economy and society, according to CCTV report. The Enping 15-1 Oilfield, where China’s first offshore carbon dioxide storage demonstration project is located, is the first high-carbon-dioxide-content oilfield in the Pearl River Estuary basin. Through carrying out key research on reservoir geology, drilling and completion, and engineering integration, CNOOC took the lead in June 2023 in putting into operation China’s first offshore carbon dioxide capture and storage project, said the report. The project separates carbon dioxide from the produced oil and gas stream, followed by dehydration and drying, compression, and then reinjection through injection wells into shallow saline formations in the oilfield under high pressure, achieving an annual carbon dioxide storage capacity of more than 40 million cubic meters, according to CCTV. In May this year, a new carbon dioxide utilization project was put into operation, which is able to boost crude oil production of 200,000 tons. This has realized a full-chain upgrade of offshore carbon dioxide capture, storage, and utilization equipment, technology, and engineering, and pioneered a new model of marine energy recycling that ‘uses carbon to enhance oil recovery and uses oil to secure carbon,’ according to CCTV. Looking ahead, over the next decade the oilfield is expected to reinject more than 550 million cubic meters of carbon dioxide, driving an increase of 200,000 tons in crude oil production, according to CCTV.”
Page 2: Let’s look at the calls between the US Secretary of State Marco Rubio and Wang Yi and the one between US Secretary of War Pete Hegseth and Dong Jun.
The Chinese readout of the Wang-Rubio call says:
“Wang Yi said that for the two giant ships of China and the US to move forward together without deviation or loss of momentum, they must unwaveringly adhere to the strategic guidance of the two heads of state and implement the important consensus reached by the two heads of state without compromise. The recent negative words and deeds of the United States have harmed China’s legitimate rights and interests, interfered in China's internal affairs, and are not conducive to the improvement and development of China-US relations. China unequivocally opposes this. The US must exercise caution in its words and actions, especially on issues concerning China’s core interests, such as Taiwan. China and the United States fought side by side to defeat militarism and fascism during World War II. In the new era, they should also cooperate for world peace and prosperity, address various global challenges, and shoulder the responsibilities of major powers.” 王毅表示，中美这两艘巨轮要共同前行，不偏航、不失速，就必须坚持两国元首的战略引领不动摇，坚持落实两国元首重要共识不打折扣。美方近来采取的消极言行，损害了中方正当权益，干涉了中国内政，不利于中美关系的改善与发展，中方明确反对。尤其在台湾等涉及中方核心利益的问题上，美方务必谨言慎行。中美曾在二战期间为战胜军国主义和法西斯并肩战斗，也应在新时期为世界的和平与繁荣开展合作，应对各种全球挑战，承担大国应尽责任.
“Both sides considered this call timely, necessary, and fruitful, and emphasised the need to further leverage the strategic guidance of heads of state diplomacy in China-US relations, properly manage differences, explore practical cooperation, and promote the stable development of China-US relations.” 双方认为，此次通话及时、必要，也富有成效，强调要进一步发挥元首外交对中美关系的战略引领作用，妥善管控分歧，探讨务实合作，推动中美关系稳定发展.
The US readout says:
“Secretary of State Marco Rubio spoke today with China’s Director of the Office of the CCP Central Foreign Affairs Commission and Foreign Minister Wang Yi. Secretary Rubio emphasized the importance of open and constructive communication on a range of bilateral issues. They also discussed other global and regional issues as a continuation of the discussions in Kuala Lumpur.”
The US readout of the Hegseth-Dong Jun call is noteworthy.
“On September 9, Secretary of War Pete Hegseth spoke with China's Minister of National Defense, Admiral Dong Jun. Secretary Hegseth made clear that the United States does not seek conflict with China nor is it pursuing regime change or strangulation of the PRC. At the same time, however, he forthrightly relayed that the U.S. has vital interests in the Asia-Pacific, the priority theater, and will resolutely protect those interests. Overall, the Secretary and Minister exchanged views in a candid and constructive manner. They agreed to further discussions.”
Note: The US seems to be dumping Trump’s own Indo-Pacific coinage to appease Beijing. Also, the language about not pursuing “regime change or strangulation” is rather clear and directly aimed at easing Chinese anxieties. Alas, the cat of strategic competition is out of the bag. I am not sure how much any of this will actually appease Beijing. The Chinese side will rather look for tangible changes in US policy and posture instead. On the other hand, this shift in language will certainly make allies and partners further question America’s commitment to the region and hedge even more. Washington is leaving them little choice in the matter.
The Chinese readout of this call says:
“Dong Jun stressed the importance of maintaining an open attitude and communication and exchanges, and constructing a military-to-military relationship of equality and respect, peaceful coexistence and steady movement in a constructive direction (平等尊重、和平共处、稳定正向). The two sides must respect each other’s core interests. Any attempt or interference to ‘support independence through force’ or ‘use Taiwan to contain China’ is doomed to fail. China is committed to working with regional countries to maintain peace and stability in the South China Sea and firmly opposes acts of infringement or provocation by certain countries, as well as attempts by certain countries outside the region to stir trouble. We remain focused on developing ourselves and firmly defending our legitimate rights and interests. Acts of containment or deterrence against China will not succeed, nor will interference in China’s affairs.” 董军说，要秉持开放态度，保持沟通交往，构建平等尊重、和平共处、稳定正向的两军关系。要尊重彼此核心利益。任何“以武助独”“以台制华”图谋和干涉都将被挫败。中方致力于与地区国家一道维护南海和平稳定，坚决反对个别国家侵权挑衅、域外国家蓄意煽乱。我们始终专注发展自己，坚定捍卫自身正当权益，遏制、威慑、干涉中国是绝对行不通的.
They also exchanged views on other issues of mutual interest.
Also on the page is a report on He Lifeng meeting with Peter Kyle, British Secretary of State for Business and Trade, in Beijing. Xinhua reports:
“He noted that China will promote the sustained, stable and healthy development of economic and trade cooperation between the two countries, ensuring the steady and long-term development of bilateral relations. China remains committed to high-standard opening up and encourages British businesses to maintain confidence in investing in China, continue to expand their operations in the Chinese market, and share in the benefits of China's super-sized market, He said. Kyle said that the UK attaches great importance to economic and trade cooperation with China. The UK is willing to deepen trade and investment relations between the two countries, he added.”
Page 3: There’s a report on Zhao Leji meeting representatives attending the 2025 Legislators Forum for Friendly Exchanges in Beijing. The report says:
“Zhao Leji said that President Xi Jinping’s Global Governance Initiative, put forward at the SCO Tianjin Summit, aims to promote joint action among countries to build a more just and equitable global governance system. Legislative bodies have the responsibility to contribute positively to promoting just and equitable global governance and building a community with a shared future for mankind. China’s NPC stands ready to work with legislatures around the world to deepen exchanges and strengthen multilateral coordination and cooperation, and jointly implement GDI, GSI, GCI and GGI. Zhao Leji also briefed on China’s progress in promoting high-level opening up and developing whole-process people’s democracy.” 赵乐际表示，习近平主席在上合组织天津峰会提出全球治理倡议，旨在推动各国携手行动，构建更加公正合理的全球治理体系。立法机构有责任为推动公正合理的全球治理、构建人类命运共同体作出积极贡献。中国全国人大愿同各国议会一道，深化交流交往，加强多边协调配合，共同践行全球发展倡议、全球安全倡议、全球文明倡议、全球治理倡议。赵乐际介绍了中国推进高水平对外开放和发展全过程人民民主情况.
Other Stories:
Here, I am covering some developments from outside the paper.
MoFA’s response to the Israeli strike in Qatar:
China sternly condemns the airstrike in the Qatari capital of Doha and firmly opposes Israel’s violation of Qatar’s territorial sovereignty and national security, Chinese Foreign Ministry spokesperson Lin Jian said on Wednesday. Lin said at a daily press briefing that China is deeply concerned that the attack could lead to further escalation of regional tensions and is dissatisfied with actions of relevant parties that deliberately undermine the Gaza ceasefire negotiations. He stressed that force cannot bring peace to the Middle East while dialogue and negotiation are the fundamental way out. Noting that the conflict in Gaza has now persisted for nearly two years, Lin said that China strongly urges all relevant parties, particularly Israel, to make more active efforts to cease fighting and resume negotiations, rather than the other way around. When asked about China’s comment on Israel's notification to the United States before the airstrike on Hamas’ site in Doha, Lin said ‘we are deeply concerned about the relevant reports.’ ‘This is inextricably linked to the long-term serious imbalance in the position of certain external countries on the Middle East issues,’ Lin added. ‘We advise certain major countries to prioritize regional peace and stability, uphold a fair and responsible attitude, and work with the international community to play a constructive role in promoting a ceasefire, ending the war, and easing regional tensions,’ the spokesperson said.”
MoFA’s response to the turmoil in Nepal:
“China hopes all sectors in Nepal can properly address their domestic issues and restore social order and national stability at an early date, Chinese foreign ministry spokesperson Lin Jian said on Wednesday. Lin made the remarks at a news briefing when asked to comment on protests and unrest in Nepal that forced its prime minister to resign. China and Nepal are traditionally friendly neighbors, Lin added, while advising Chinese nationals in Nepal to pay attention to safety.”
“China, Russia and Mongolia held their joint border defense exercise on Monday and Tuesday, staging drills in a frontier area where the three countries meet. The exercise, code-named ‘Border Defense Cooperation 2025’, focused on strengthening coordination against terrorist and sabotage activities in border regions, the People’s Liberation Army Daily reported Wednesday. The live joint exercise aimed to bolster the three countries' ability to respond to border security threats while deepening strategic trust, according to the report. During the drill, the three sides set up a joint command post in China and carried out activities including joint planning, reconnaissance and strikes, testing a new model of border defense cooperation, it said. After the exercise, the three militaries exchanged views on border management and control.”
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