PBSC on 'Grim' Flood Situation - Lan Fo’an on Fiscal & Tax Reform - RMB 300bln Allocated for Equipment Renewal & Goods Trade-in - India-China Talks - China-Russia Expand Asia-Pacific Coordination
Here are the key reports and articles that I found noteworthy from the People’s Daily’s edition on Friday, July 26, 2024
Page 1: The lead story on the page is about the Politburo Standing Committee meeting to discuss work related to flood control and disaster relief.
“The meeting pointed out that this year, China has experienced abnormal climatic conditions with more frequent and prolonged heavy rainfall, floods in rivers have occurred earlier and developed faster than usual, and some areas have repeatedly suffered from heavy rainfall. The flood prevention and control situation is grim and complex. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, Party committees and governments at all levels acted quickly and responded with all their strength. The State Flood Control and drought relief headquarters, along with various relevant departments and units, have diligently fulfilled their duties and collaborated closely. The People's Liberation Army, Armed Police Force, national comprehensive fire and rescue teams, and various specialized rescue forces have responded promptly to orders and charged to the forefront. The vast numbers of cadres and masses have stood together through the storms, collectively building a solid line of defense to protect their homes. As a result, important interim achievements have been made in flood prevention, control, and disaster relief efforts.” 会议指出，今年我国气候年景偏差，强降雨过程多、历时长，江河洪水发生早、发展快，一些地方反复遭受强降雨冲击，防汛抗洪形势严峻复杂。在以习近平同志为核心的党中央坚强领导下，各级党委和政府迅速行动、全力应对，国家防总、各有关部门和单位履职尽责、通力协作，解放军和武警部队、国家综合性消防救援队伍和各类专业救援力量闻令而动、冲锋在前，广大干部群众风雨同舟、众志成城，共同构筑起了守护家园的坚固防线，防汛抗洪救灾取得重要阶段性成果.
The meeting added that China is currently in the critical flood control period of late July to early August. The pressure to prevent flood peaks, prevention of embankment breaches, and drainage of waterlogging in the Yangtze River and other river basins has not reduced. There is a possibility of severe flooding in the Yellow River, Huai River, Hai River, and Songliao basins, and the situation is further complicated by the onset of the typhoon season, making flood control efforts even more challenging and complex. 会议强调，当前我国正值“七下八上”防汛关键期，长江等流域防洪峰、防决堤、排内涝压力不减，黄河、淮河、海河、松辽流域有可能发生较重汛情，叠加台风进入活跃期，防汛形势更加严峻复杂。
“The meeting pointed out that it is necessary to always put the protection of people’s lives and safety first, further improve monitoring methods, improve the accuracy of early warning, strengthen the linkage between early warning and emergency response, improve response speed, highlight defence priorities, keep a close eye on the grassroots, and decisively transfer people from dangerous areas early in order to minimise casualties.” 会议指出，要始终把保障人民生命安全放在第一位，进一步完善监测手段，提高预警精准度，强化预警和应急响应联动，提高响应速度，突出防御重点，盯紧基层末梢，提前果断转移危险区群众，最大限度减少人员伤亡.
The meeting also emphasised the need to reinforce water infrastructure nationwide to prevent dike breaches and dam bursts in major rivers and reservoirs. It also talked about properly managing flood control projects. And it says that regarding important infrastructure such as the South-to-North Water Diversion Project, West-to-East Gas Pipeline, highways and railways, as well as key areas like urban underground spaces, bridges, culverts, and tunnels, it is necessary to further investigate potential risks and hidden dangers, implement emergency measures, and ensure safe operation. 要确保重要堤防水库和基础设施安全，落实防汛巡查防守制度，突出薄弱堤段、险工险段、病险水库的重点防守，加大查险排险力度，坚决避免大江大河堤防决口、大型和重点中型水库垮坝。要科学调度防洪工程，细化蓄滞洪区运用准备。要针对南水北调、西气东输、公路铁路等重要基础设施，以及城市地下空间、桥涵隧道等重点部位，进一步排查风险隐患，落实应急措施，保障安全运行.
The report adds:
“The People’s Liberation Army, the Armed Police Force, fire departments, and central enterprises must always remain in an emergency state, obey unified dispatch, and ensure rapid deployment and efficient rescue operations. Disaster relief funds should be allocated in a timely manner, disaster relief materials should be transported appropriately, insurance claims settlement should be accelerated, disaster-stricken people should be properly resettled, and the needs of people seeking medical treatment and students returning to school should be guaranteed. It is necessary to accelerate the repair of damaged infrastructure such as water conservancy, electricity, transportation, and communications, and organise and lead the affected people to resume production and rebuild their homes. Solid work should be done in agricultural disaster prevention and mitigation to minimise agricultural losses and ensure national food security. It is also essential to care for and assist disaster-affected and impoverished people to prevent poverty caused by disasters and ensure that they do not return to poverty.” 会议强调，要全力开展抢险救援救灾，加强统筹部署和超前预置。解放军、武警部队、消防、央企等各方力量，要时刻保持应急状态、听从统一调度，确保快速出动、高效救援。要及时下拨救灾资金、调运救灾物资，加快保险理赔，妥善安置受灾群众，做好群众就医、学生开学等需求保障。要抓紧抢修水利、电力、交通、通信等受损基础设施，组织带领受灾群众恢复生产、重建家园。要扎实做好农业防灾减灾工作，最大程度减少农业损失，保障国家粮食安全。要关心帮助受灾困难群众，防止因灾致贫返贫.
“Towards the end, the document says that “grassroots Party organisations and the broad masses of Party members and cadres must fully play their role as fighting fortresses and vanguard models, bravely taking the lead and shouldering their responsibilities on the front lines of flood control and disaster relief, making every effort to ensure the safety of people’s lives and property.” 基层党组织和广大党员干部要充分发挥战斗堡垒和先锋模范作用，在防汛抗洪救灾一线奋勇争先、挺膺担当，全力保障人民群众生命财产安全.
There are more pieces on flood relief work on the page, if you are interested. For instance, the Central Organisation Department has allocated RMB 27 million for flood relief work in Sichuan and Shaanxi
Next, there’s a report on Wang Huning leading a CPC delegation to Hanoi to mourn the passing of Nguyen Phu Trong. Xinhua reports:
“Wang expressed deep grief over the passing of comrade Nguyen Phu Trong, saying that after learning the sad news, Xi went to the Embassy of Vietnam in China to pay tribute to the late leader, and the CPC Central Committee sent condolences to the CPV Central Committee. Appointing Wang as Xi’s special representative to lead a CPC delegation here for the mourning shows once again the heartfelt grief and sincere condolences of Xi and the CPC Central Committee to the CPV Central Committee and Trong's family. At this special moment, the party and people of China stand firmly with the party and people of Vietnam, Wang said.”
“Wang noted that Trong is a staunch Marxist, a great leader of the CPV and the Vietnamese people, and a great friend of the Chinese people. His death is a great loss to the cause of socialism in Vietnam and to the cause of peace and progress of mankind. The Chinese party and government will, as always, support the Vietnamese party in leading its people on a development path suited to their national conditions, and support Vietnam's reform, opening-up and socialist development, Wang said. It is believed that under the strong leadership of its central committee, the CPV will inherit and develop Trong's philosophy and principles on party and state governance, and unite and lead the Vietnamese people to successfully accomplish the goals and tasks set forth at the 13th National Congress of the CPV and welcome the successful convening of the 14th National Congress of the CPV, Wang added. Wang said that Xi and Trong have devoted to the development of relations between the two parties and the two countries. Under the strategic guidance of the two leaders, China-Vietnam relations have maintained steady and sound development and have been lifted to a new height of a community with a shared future that carries strategic significance, Wang noted. He said that China is ready to work with Vietnam to implement the important consensus reached between the two sides during Xi's visit to Vietnam last year, maintain high-level exchanges, deepen practical cooperation in key areas, consolidate the foundation of public support for China-Vietnam friendship, and strengthen multilateral coordination and cooperation, so as to promote the building of a China-Vietnam community with a shared future in a deep, solid, steady and long-term manner, he said.”
Page 2: There is an interview with Minister of Finance Lan Fo’an, discussing elements of the Third Plenum Decision. The first question is around the achievements in fiscal and tax reform.
He says that:
“In general, the goals of fiscal and taxation system reform set by the Third Plenary Session of the 18th CPC Central Committee have been basically achieved, and finance has played a better role as the foundation and important pillar in national governance, providing a more solid guarantee for achieving the first centennial goal and building a comprehensively modern socialist country. This is mainly reflected in the following three aspects: 总的看，党的十八届三中全会确定的财税体制改革目标基本实现，财政更好发挥了在国家治理中的基础和重要支柱作用，为实现第一个百年奋斗目标、全面建设社会主义现代化国家提供了更坚实的保障。主要体现在三个方面.
First, China’s fiscal strength has continued to grow, and the ability to coordinate fiscal resources has been significantly enhanced. National fiscal revenue has increased from 11.7 trillion yuan in 2012 to 21.7 trillion yuan in 2023; expenditure has more than doubled from 12.6 trillion yuan to 27.5 trillion yuan. Many major achievements have been accomplished by concentrating financial resources, and the implementation of major national strategies and investment in key areas related to people’s livelihood have been effectively guaranteed. 一是财政实力不断壮大，财政资源统筹能力显著增强。全国财政收入从2012年的11.7万亿元，增长到2023年的21.7万亿元；支出规模从12.6万亿元，增加到27.5万亿元，增长一倍多，集中财力办成了很多大事要事，国家重大战略实施和重点民生领域投入得到有力保障.
Macroeconomic fiscal regulation has increasingly improved, effectively promoting high-quality development. Efforts have been made to advance tax reform in conjunction with tax cuts and fee reductions, aiming to ease the burden on businesses, and provide greater support for technological innovation, small and medium-sized enterprises, and manufacturing firms. Innovative measures such as issuing special treasury bonds and local government special bonds have been adopted to support domestic demand, address weaknesses, make up for shortcomings, prevent risks, and promote sustainable and healthy economic development. 二是财政宏观调控日益完善，有力推动高质量发展。坚持税制改革与减税降费协同推进，努力让经营主体“轻装上阵”，让科技创新领域和中小微企业、制造业企业得到更大支持。采取发行特别国债、地方政府专项债券等创新性举措，支持扩内需、补短板、强弱项、防风险，促进经济持续健康发展。
Responsibilities, powers, and benefits between different levels of government have been further clarified. The financial responsibilities and expenditure obligations of the central and local governments are clearer, and the system of transfer payments from the central to local governments has been further optimised. The scale of transfer payments from the central to local governments increased from 4.5 trillion yuan in 2012 to 10.2 trillion yuan in 2024, a 125% increase, strongly promoting regional coordinated development and the equalization of basic public services. 三是政府间权责利进一步明确，有效调动了两个积极性。中央与地方财政事权、支出责任更加清晰，中央对地方转移支付体系更加优化，中央对地方的转移支付规模从2012年的4.5万亿元，增长到2024年的10.2万亿元，增长125%，有力促进区域协调发展和基本公共服务均等化.
The second question is about what to expect going forward when it comes to fiscal and taxation system reform. Lan makes five points:
First, focus on building a high-level socialist market economic system, improve the fiscal system and taxation system, promote the accelerated construction of a unified national market, smoothen the national economic cycle, and achieve the optimization of resource allocation efficiency and maximisation of benefits.
Second, focus on the primary task of promoting high-quality development, actively adapt to changes in China’s industrial structure, business forms, and wealth distribution, innovate the fiscal and taxation system, promote the accelerated development of new quality productive forces, and create new momentum and new advantages for development.
Third, focus on improving the macro-control system, adhere to systematic thinking and advance fiscal and tax reforms in a coordinated manner, strengthen coordination and cooperation with other policies, enhance the consistency of macro-policy orientation, and improve the scientific nature of macro-control and the effectiveness of government governance.
Fourth, adhere to the people-centred approach, strengthen the regulatory role of finance and taxation, promote the improvement and enhancement of the livelihood security system, better promote social equity, and continuously enhance the well-being of the people.
Fifth, comprehensively promote the construction of a beautiful China, strengthen the supply of fiscal and taxation systems and policy guarantees, coordinate the promotion of carbon reduction, pollution reduction, green expansion, and growth, accelerate the improvement of the system and mechanism for implementing the concept that clear waters and lush mountains are invaluable assets, and support high-quality development with high-quality ecological environment.
一是聚焦构建高水平社会主义市场经济体制，完善财政体制和税收制度，推动加快构建全国统一大市场，畅通国民经济循环，实现资源配置效率最优化和效益最大化。二是围绕推动高质量发展这个首要任务，积极适应我国产业结构、商业模式、财富分配等变化，创新财税制度，推动加快发展新质生产力，塑造发展新动能新优势。三是着眼完善宏观调控制度体系，坚持系统观念，统筹推进财税改革，加强与其他政策协调配合，增强宏观政策取向一致性，提升宏观调控的科学性和政府治理的有效性。四是坚持以人民为中心，强化财税调节作用，推动健全保障和改善民生制度体系，更好促进社会公平，持续增进人民福祉。五是全面推进建设美丽中国，加强财税制度供给和政策保障，协同推进降碳、减污、扩绿、增长，加快完善落实绿水青山就是金山银山理念的体制机制，以高品质生态环境支撑高质量发展.
He added that specifically reforms in the following three areas will be promoted:
First, improve the budgeting system and vigorously promote scientific fiscal management to enhance the levels of systematisation, refinement, standardisation, and legalisation. On the revenue side, strengthen the overall planning of fiscal resources; on the expenditure side, deepen zero-based budget reform; and in management, place more emphasis on performance orientation. Strictly implement the requirement for Party and government organs to practice frugality/live a tight life, strengthen financial support for major national strategic tasks and basic financial security for people's livelihood, ensuring being frugal and cautious with small expenses and avoiding unnecessary small costs while spending generously on high-impact domains and priorities (小钱小气、大钱大方) and directing precious fiscal funds to critical areas of development and urgent needs related to people’s livelihood. 第一，健全预算制度，大力推进财政科学管理，提升系统化、精细化、标准化、法治化水平。收入上加强财政资源统筹，支出上深化零基预算改革，管理上更加突出绩效导向，不折不扣落实党政机关习惯过紧日子要求，强化国家重大战略任务和基本民生财力保障，做到“小钱小气、大钱大方”，把宝贵的财政资金用在发展紧要处、民生急需上.
Second, improve the tax system, optimise the structure of the tax system, and promote high-quality development, social equity and market unification. Conducting studies on tax systems that are compatible with new business forms. Fully implement the principle of statutory taxation, improve the support mechanism for key areas and key links, and accelerate the construction of a modern industrial system. Improve the direct tax system, improve the individual tax system, and better utilize its function in regulating income distribution. 第二，健全税收制度，优化税制结构，促进高质量发展、社会公平、市场统一。研究同新业态相适应的税收制度。全面落实税收法定原则，完善对重点领域和关键环节支持机制，加快建设现代化产业体系。健全直接税体系，完善个税制度，更好发挥调节收入分配功能.
The third point has four sub-points.
Third, improve the fiscal relationship between the central and local governments and enhance independent local financial resources.
First, expand revenue sources, advance the collection of consumption tax to later stages of the production and distribution processes and steadily transfer it to local governments. Improve the value-added tax refund policy and deduction chain, and optimise the sharing ratio of shared taxes. 一是拓财源，推进消费税征收环节后移，并稳步下划地方。完善增值税留抵退税政策和抵扣链条，优化共享税分享比例.
Second, strengthen incentives, improve the fiscal transfer payment system, streamline and standardise special transfer payments, increase general transfer payments, and improve the alignment between municipal and county fiscal capacities and responsibilities. Establish an incentive and constraint mechanism for transfer payments to promote high-quality development. 二是强激励，完善财政转移支付体系，清理规范专项转移支付，增加一般性转移支付，提升市县财力同事权相匹配程度。建立促进高质量发展转移支付激励约束机制.
Third, manage debts effectively, reasonably expand the scope of special bonds support, and appropriately increase the fields, scale, and proportion of capital used. Establish a comprehensive monitoring and supervision system for local government debt, build a long-term mechanism for preventing and resolving hidden debt risks, and accelerate the reform and transformation of local financing platforms. 三是管好债，合理扩大专项债券支持范围，适当扩大用作资本金的领域、规模、比例。建立全口径地方债务监测监管体系，构建防范化解隐性债务风险长效机制，加快地方融资平台改革转型.
Fourth, appropriately strengthen central government responsibilities and increase the proportion of central fiscal expenditure. Central fiscal responsibilities should, in principle, be managed through central government arrangements for expenditure, reducing the delegation of central fiscal responsibilities to local governments. It is not allowed to require local governments to arrange matching funds in violation of regulations. If it is necessary to entrust local governments to exercise responsibilities, funds should be arranged through special transfer payments. 四是优事权，适当加强中央事权，提高中央财政支出比例。中央财政事权原则上通过中央本级安排支出，减少委托地方代行的中央财政事权。不得违规要求地方安排配套资金，确需委托地方行使事权的，通过专项转移支付安排资金.
The final question is about how the Ministry of Finance will implement the reforms. He makes three points:
First, earnestly study and understand the spirit of the plenary session. In this, he basically talks about studying and understanding Xi’s views and ideas, and to truly unify thoughts and actions with the decisions and arrangements of the Third Plenary Session of the 20th CPC Central Committee.
Second, scientifically formulate a reform task list, timetable, and priorities, and advance the fiscal and tax system reforms in a phased and orderly manner.
Third, implement with a spirit of nails, i.e., being a doer and ensuring proper process for implementation and evaluation; and on major difficult and key issues, organise in-depth research and listen to opinions widely to make the reform practical, feasible, and effective.
Next, there’s a report on the page talking about the new 16-point document co-released by the NDRC and Ministry of Finance on how to implement the plan for equipment renewal and trade-in of consumer goods. The article has comments from NDRC’s Zhao Chenxin. Around RMB 300 billion ultra-long-term special treasury bonds will be issued to support large-scale equipment renewal and trade-in of consumer goods. All this money, as per the report, will be issued before the end of August.
Scope of use of funding: “In terms of equipment upgrades, based on the existing scope of updating and recycling equipment in seven areas—industrial, environmental infrastructure, transportation, logistics, education, cultural tourism, and medical—the scope of support for ultra-long-term special government bonds will be expanded to include equipment updates in the energy and power sectors, old elevators, and other fields, as well as energy conservation, carbon reduction, and safety transformation in key industries. For consumer goods trade-ins, the replacement of personal vehicles, household appliances, and electric bicycles, as well as the purchase of materials for renovating old houses, upgrading kitchens and bathrooms, and making homes more elderly-friendly all will fall within the scope of ultra-long-term special government bond funding.” 设备更新方面，在原有的工业、环境基础设施、交通运输、物流、教育、文旅、医疗等7个领域设备更新和回收循环利用的基础上，将超长期特别国债支持范围扩大到能源电力、老旧电梯等领域设备更新，以及重点行业节能降碳和安全改造。消费品以旧换新方面，将个人消费者乘用车置换更新，家电产品和电动自行车以旧换新，旧房装修、厨卫改造、居家适老化改造的物品材料购置等，一并纳入超长期特别国债资金支持范围.
The report also says that the document calls to directly allocate approximately 150 billion yuan of ultra-long-term special government bond funds to local governments to support their autonomous implementation of consumer goods replacement programs. 消费品以旧换新方面，直接向地方安排1500亿元左右超长期特别国债资金，支持地方自主实施消费品以旧换新. In this regard, Zhao later informs that “the scale of fund allocation in each region will be reasonably determined by comprehensively calculating factors such as the permanent population, regional GDP, and the number of cars and home appliances in each region.” 在具体操作上，将综合各地区常住人口、地区生产总值、汽车和家电保有量等因素测算，合理确定各地区资金分配规模.
Enhanced subsidy standards:
First, in regard to automobile scrapping and replacement, the subsidy standards for eligible vehicle scrapping and replacement will be increased from the previous 10,000 yuan for purchasing new energy passenger vehicles and 7,000 yuan for purchasing fuel-powered passenger vehicles, to 20,000 yuan and 15,000 yuan, respectively.
Second, in terms of financial interest subsidies for equipment renewal loans, the central government will increase the interest subsidy rate for equipment renewal loans for eligible business entities from 1 percentage point to 1.5 percentage points.
Third, the subsidy standards for scrapping and replacing old operating vehicles and ships, agricultural machinery, and updating new energy buses and power batteries have all been significantly increased compared to previous standards.
Fourth, in terms of household appliances, the document proposes that individual consumers who purchase 8 types of household appliances, such as refrigerators, washing machines, televisions, air conditioners, etc. with energy efficiency or water efficiency standards of Level 2 or above will be provided a 15% subsidy on the sales price; an additional 5% subsidy will be given for products with an energy efficiency or water efficiency standard of Level 1 or above.
提升补贴标准。比如，在汽车报废更新方面，对符合条件的汽车报废更新，将补贴标准由此前的购买新能源乘用车补贴1万元、购买燃油乘用车补贴7000元，分别提高到2万元和1.5万元。在设备更新贷款财政贴息方面，对符合条件的经营主体，中央财政给予设备更新贷款的贴息比例，从1个百分点提高到1.5个百分点。此外，对老旧营运车船报废更新、农业机械报废更新、新能源公交车及动力电池更新等方面的补贴标准，较此前均有大幅度提升。家电产品方面，《措施》提出，对个人消费者购买2级及以上能效或水效标准的冰箱、洗衣机、电视、空调等8类家电产品，给予产品销售价格的15%补贴；对购买1级及以上能效或水效标准的产品，额外再给予5%的补贴.
Page 3: There are a bunch of foreign affairs-related stories that I’d like to highlight. So I am basically going to go through the ministry’s website, since some of these are not covered in the paper.
First, Wang Yi’s meeting with Indian External Affairs Minister S. Jaishankar in Vientiane. This is their second meeting in around a month. The Chinese readout says:
Wang said that “in the face of the current complex international landscape and daunting global challenges, China and India, as two major neighboring developing countries and emerging economies, should step up dialogue and communication, increase understanding and mutual trust, properly handle differences, and develop mutually beneficial cooperation. With a sense of responsibility for history, for the people and for the world, the two sides should take a rational approach to rise above differences and frictions, to promote the improvement as well as stable and sustainable development of China-India relations.”
“The important impact of China-India relations goes beyond bilateral scope. Improving bilateral relations should reflect the strategic vision of China and India as two major emerging and developing countries. Handling the differences between the two countries should demonstrate the political wisdom of China and India as two ancient civilizations. Tackling global challenges should embody the solidarity and cooperation of countries of the ‘Global South’. It is hoped that the two sides will work together to actively explore the right way for the two big neighbors to get along with each other, and guide all communities to develop positive perceptions of each other. Wang Yi emphasized that a China-India relationship back on the right track serves the interests of both sides and meets the shared aspiration of countries of the ‘Global South’.”
As per the readout, Jaishankar said that “maintaining the stable and predictable development of bilateral relations fully conforms to the interests of both sides and is of special significance to safeguarding regional peace and promoting multipolarity. India and China have widely intertwined interests and are also facing the shadow brought by the border situation, but the Indian side is willing to find a solution to differences with a historical vision, strategic thinking and an open attitude and bring bilateral relations back to the positive and constructive track...The two sides agreed to work together to maintain peace in the border areas and push for new progress in the consultation on border affairs.”
“The two sides said that they will strengthen communication within the East Asia Cooperation Platform, the Shanghai Cooperation Organization, the Group of Twenty, BRICS and other frameworks, jointly practice multilateralism, and safeguard the legitimate rights and interests of developing countries.”
The Indian side’s readout says that:
“The meeting gave the two Ministers an opportunity to review the situation since their last meeting at Astana on 4 July 2024. Their talks focussed on finding an early resolution of the remaining issues along the Line of Actual Control (LAC) to stabilize and rebuild bilateral relations. Both Ministers agreed on the need to work with purpose and urgency to achieve complete disengagement at the earliest. Peace and tranquillity on the borders and respect for LAC are essential for normalcy in bilateral relations. Both sides must fully abide by relevant bilateral agreements, protocols, and understandings reached between the two Governments in the past. EAM stressed the importance of the three mutuals --- mutual respect, mutual interest and mutual sensitivity --- to our ties. As discussed earlier, both sides will hold an early meeting of the Working Mechanism on Consultation and Coordination on India-China Border Affairs (WMCC) to take the discussions forward. The two Ministers also exchanged views on the global and regional situation.”
Second, Wang’s meeting with Sergei Lavrov. Wang said that:
“China-Russia relations are mature, stable, resilient and independent, with solid political mutual trust, deepening strategic coordination, broad prospects for mutually beneficial cooperation, vibrant people-to-people exchanges and productive international cooperation. in the face of the volatile and complex international situation and external disturbances and obstacles, China is ready to work with Russia to uphold the original aspiration of everlasting good neighborliness and friendship, firmly support each other, safeguard each other's core interests, and remain each other's good partner for development and revitalization. China and Russia, both important countries in the Asia-Pacific region and dialogue partners of the Association of Southeast Asian Nations (ASEAN), can maintain communication and coordination on East Asia cooperation. China is ready to work with Russia to uphold the ASEAN-centered, open and inclusive regional cooperation architecture, promote the existing East Asia mechanism to deepen cooperation consensus, and promote regional peace, stability and prosperity.”
As per Xinhua, “Lavrov said under the strategic guidance of the two heads of state, Russia and China have maintained close communication, strengthened strategic collaboration, jointly upheld a fair and just international order, practiced genuine multilateralism, and injected positive energy into the building of a multipolar world. Russia will work with China to support the centrality of ASEAN and prevent the interference and infiltration of external forces, he noted.”
The two sides expressed the willingness to strengthen cooperation within multilateral mechanisms such as the Shanghai Cooperation Organization (SCO) and BRICS. Russia congratulated China and the Beijing Declaration uniting Palestinian factions. He said that “Russia will work together to restore peace in the Middle East”. Also, the two sides exchanged views on major issues concerning peace and security and discussed the commemoration of the 80th anniversary of the victory of the World Anti-Fascist War and the 80th anniversary of the victory of the Chinese People’s War of Resistance Against Japanese Aggression next year. They said that the victory and a correct view of World War Two should be jointly safeguarded. 双方就事关和平与安全的重大议题交换意见，讨论了纪念明年世界反法西斯战争胜利80周年暨中国人民抗日战争胜利80周年事宜。认为应共同维护二战胜利成果，捍卫正确二战史观。拉夫罗夫祝贺中方成功推动巴勒斯坦各派别签署《北京宣言》，表示俄方将共同致力于恢复中东和平.
The Russian foreign ministry’s website has shared Lavrov’s remarks to Wang. I am sharing two key paragraphs below:
“Russia and China have been working in tandem on building a multipolar world order with better justice for all, guided by the principle of genuine multilateralism. In addition, they have been creating positive vibes within the United Nations and the Group of Twenty, while remaining proactive within BRICS and the SCO. There are other important international platforms too, including, of course, ASEAN and the entire architecture revolving around this association. We share the view that we must do everything to prevent its destruction.”
“Today, we had a detailed conversation on this matter during our joint meeting with Deputy Prime Minister and Foreign Minister of Lao PDR Saleumxay Kommasith, whose country currently chairs ASEAN. We believe in the importance of continuing this dialogue in order to combine our efforts in countering any attempts by extra-regional forces to interfere in Southeast Asian affairs and to contribute to its wellbeing and prosperity.”
So, Xinhua’s coverage of Wang and Lavrov’s meeting with Lao Deputy Prime Minister and Foreign Minister Saleumxay Kommasith is as follows.
Wang “highlighted a world of accelerating changes unseen in a century, with new turbulences ahead, a transforming international system, and a sluggish global economic recovery. He cited rising hegemonism, unilateralism and protectionism, and the undercurrents of ‘small courtyard and high wall’ and ‘decoupling and breaking chains’, coupled with persisting regional conflicts as among pervading destabilizing, uncertain and unpredictable factors around the world. However, the Chinese foreign minister emphasized peace, development, cooperation and mutual benefit remain the common aspiration of the people of the international community, with world multipolarity, economic globalization and democracy in international relations still being the major trend of today's world. Wang said the Global South is growing and emerging powers are rising inexorably, noting strengthening regional cooperation, promoting integrated development and practicing multilateralism are the common aspirations of countries while building a community with a shared future for mankind presenting a brighter prospect. Wang stressed China, Russia and Laos as emerging economies in the Asia-Pacific region and as constructive forces for regional peace and development, as well as the fact that they are the current rotating chairs of the Shanghai Cooperation Organization (SCO), BRICS group and the Association of Southeast Asian Nations (ASEAN), respectively. Enhancing cooperation among the three countries will not only help safeguard their common interests, but also send a clear message of solidarity and cooperation among regional countries joining efforts to promote regional stability and prosperity and cope with risks and challenges, he said. China speaks highly of Laos' chairmanship of ASEAN and stands ready to work with Russia to support the ASEAN-centered regional cooperation architecture and support Laos and ASEAN countries in keeping East Asia cooperation on the right track.”
As per the report, Lavrov concurred with Wang.
All three then “vowed efforts to forge a closer connectivity partnership, with the help from a high-quality two-way operation of China-Laos Railway and China-Europe Express that enables a railway corridor linking Russia, China's Manzhouli, Chengdu, and Kunming, Laos’ Vientiane and Thailand's Bangkok, including expanding and upgrading supporting industries, and maintaining stable and smooth industrial and supply chains. The three sides expressed concerns over non-regional forces fanning fires in the Asia-Pacific region, and the willingness to step up coordination and cooperation to cool down hotspot issues in maintaining regional security and stability. They agreed to jointly oppose power politics, to resist camp confrontations, to practice multilateralism and to safeguard international fairness and justice. The three sides said they will work for a synergy of SCO and BRICS cooperation mechanisms with the ASEAN cooperation architecture, pushing regional integration. They expect to welcome the attendance by the Secretary-General of ASEAN and the Secretary-General of the SCO to each other’s meetings. During the meeting, the Chinese and Russian sides also said they support Laos in becoming a dialogue partner of the SCO and participating in activities of the BRICS mechanism.”
Also, do note this mine clearing cooperation deal signed between the foreign ministers of China and ASEAN.
Moving on, there’s a brief report on Vice Premier He Lifeng meeting with John Key, former prime minister of New Zealand. Also, there’s a brief report on the CPC delegation led by Chen Zhou, Vice-Minister at the International Liaison Department, to Poland.
Next, the 10th round of high-level strategic dialogue between foreign ministries of China and South Korea was held in Seoul on Wednesday. This was led by Vice Foreign Minister Ma Zhaoxu and ROK Vice Foreign Minister Kim Hong-kyun. Xinhua says:
“The two sides agreed to actively implement consensus reached by leaders of the two countries, strengthen exchanges and communication, deepen mutually beneficial cooperation, properly handle differences, enhance friendship between the two peoples, and promote the development of China-ROK strategic cooperative partnership. The Chinese side expressed its solemn positions on the Taiwan question, the South China Sea issue and other issues involving China's core interests and major concerns, and urged the ROK to abide by the one-China principle, safeguard political foundation of bilateral relations, and uphold an objective and just position on the South China Sea issue. The ROK side reiterated its adherence to the one-China principle and hopes that the South China Sea will maintain peace and stability.”
The Chinese side pointed out that the two countries, as beneficiaries of economic globalization, should jointly oppose trade protectionism and ‘decoupling and cutting off industrial and supply chains,’ resist the pan-politicization and pan-security of economic issues, ensure the stability and smooth flow of industrial and supply chains of the two countries, and safeguard international free trade system. The ROK side said it attaches importance to cooperation between the two countries in industrial and supply chains, and is willing to strengthen dialogue and coordination with China.”
“The two sides also expounded their respective positions and views on the situation on the Korean Peninsula as well as other international and regional issues of common concern. The Chinese side said that the current situation on the peninsula is complex and severe, and maintaining regional peace and stability serves common interests of all parties. The top priority is to cool down the situation, and China hopes that relevant parties including the ROK will play a positive and constructive role in pushing forward political settlement process of the Korean Peninsula issue.”
Among other things, the South Korean readout says:
“The two sides appreciated that following the agreement by President Yoon Suk Yeol and Premier Li Qiang to establish or reactivate bilateral communication channels in the areas of diplomacy and security, reached during the meeting held on the occasion of the recent Korea-Japan-China Trilateral Summit, such strategic communication has been in high gear, as could be seen from the Vice Foreign Ministerial Strategic Dialogue coming only a month after the Foreign Policy and Security Dialogue in June. The two sides agreed to continuously develop their Strategic Cooperative Partnership based on mutual respect, reciprocity and shared interests. Furthermore, the two sides shared the view that they should further promote economic and commercial trade cooperation and people-to-people exchanges between the two countries through communication channels such as the Korea-China Meeting for Comprehensive Review of Economic Cooperation and Working-Level Meeting on Consular Affairs.”
“Regarding Korean Peninsula issues, the Korean side expressed grave concerns over North Korea’s escalation of tensions on the Korean Peninsula and in the region through its multiple complex provocations as well as its conclusion of the ‘Treaty on Comprehensive Strategic Partnership’ and strengthened military and economic cooperation with Russia. The Korean side called on China to play a constructive role in promoting peace and stability on the Korean Peninsula and in denuclearizing North Korea, and proposed that Korea and China continue communication in that regard. In response, the Chinese side stated that China’s policy regarding the Korean Peninsula remains unchanged and that China will play a constructive role in resolving Korean Peninsula issues. Also, the Korean side explained the priority and significance that the Korean government places on protecting North Korean defectors and once again requested the Chinese government’s active cooperation regarding the matter.”
As per the readout, Minister of Foreign Affairs Cho Tae-yul also met with Ma. He specifically pointed out that “North Korea’s continued provocations and its close ties with Russia are seriously threatening peace and stability on the Korean Peninsula and in the international community.”
Page 4: There’s a report informing that in June, 23,110 cases of violations of the central 8-point regulation were reported. This covered 31,654 people.
Another report informs that in 2024 H1, disciplinary inspection and supervision agencies across the country investigated 405,000 cases and punished 332,000 people, including 25 provincial and ministerial level officials.
Page 7: There is a report informing that the Ministry of Commerce along with six other departments have issued a new document calling to facilitate accommodation for foreign personnel in the context of high-level opening-up.
The document calls for removal of barriers that restrict accommodation providers from hosting foreign personnel. It says that online platforms and accommodation providers should not unlawfully publish information stating that they do not accept foreign guests. 通知要求，地方相关部门、网络运营平台不应以资质要求等为门槛限制住宿业经营者接待境外人员住宿，网络运营平台、住宿业经营者不应违规对外发布不接待境外人员住宿的有关信息
The document also calls for strengthening industry self-discipline, unblocking service channels, improving payment convenience, and creating a friendly atmosphere. The notice calls to optimise registration services for foreign personnel, simplify information collection items, prioritize education and management, and ensure tolerant and prudent enforcement.进一步优化住宿业经营者对境外人员住宿登记的管理服务工作，简化信息采集项目，坚持教育管理先行，包容审慎执法.
Page 15: There’s a report informing that Türkiye’s national carrier Turkish Airlines has become the first airline to secure Chinese yuan-denominated aircraft financing outside of China. Three Airbus A350 aircraft that joined the flag carrier’s fleet in the May-July period are financed in Chinese yuan by China’s leading AVIC International Leasing and CCB Financial Leasing.