PLAAF's 75th Anniversary - Ren Ping Article on Economy: 'Pain of Transformation Cannot be Avoided or Circumvented' - China Delimits Scarborough Shoal
Here are the key reports and articles that I found noteworthy from the People’s Daily’s edition on Monday, November 11, 2024.
Page 1: The lead story today marks the 75th anniversary of the PLAAF. The article says that:
“Under the guidance of Xi Jinping Thought on strengthening the military, the PLAAF has accelerated the pace of transformation and construction, firmly and consciously obeyed the Party’s command, deepened training and preparation for war/combat-readiness, accelerated the construction of new combat forces, and written a new chapter in the journey of strengthening and rejuvenating the military.” 在习近平强军思想引领下，人民空军加快转型建设步伐，听党指挥坚定自觉，练兵备战深入推进，新型作战力量建设加快发展，在强军兴军征程上书写了新篇章.
The piece talks about changes in combat training, the induction of new weapons systems, and the spirit of heroes. I am sharing one section below:
“From radar stations on sea islands to ground air defence troops, tens of thousands of air force personnel maintain full-time combat readiness duties every day; for aerial rights protection and air defence identification zone control, just one aviation brigade conducts hundreds of combat takeoffs annually; the ‘sky net’ woven by fighters, missiles, and radars continues to extend ... The People’s Air Force marches toward war, striving to forge an air force that comes when called, fights when it comes, and wins when it fights.
Chairman Xi has emphasized: ‘We must strengthen actual combat preparation, firmly establish the concept of training to prepare for war and leading troops to cultivate a mindset of preparing for war, firmly establish the mindset of being ready for war at any time, firmly establish the mindset of winning wars under existing conditions, strictly implement various combat readiness systems, maintain a constant and unremitting state of combat readiness, ensure that situations can be dealt with quickly and effectively, and resolutely complete various military struggle tasks shouldered by the air force.
Since the 18th Party Congress, the Air Force Party Committee has resolutely implemented the important instructions and requirements of Chairman Xi, always insisted on preparing for war as the top priority, firmly established combat effectiveness as the only fundamental standard, and continuously expanded training content and innovated training methods, and the combat effectiveness of the troops ‘shifting gears and speeding up’.
Adhere to the integration of combat to training in order to improve training levels. Continuously increase the proportion of adversarial air combat, far seas operations, long-range mobility and other subjects. Training in high-altitude regions, venturing into open seas, and flying along borders has become routine. Mass training competitions like ‘airborne elite’ and ‘maintenance elite’ becoming increasingly aligned with real combat scenarios. Adhere to scientific and technology-driven training to deepen capability generation. Accelerate weapons upgrading, shift toward new combat domains and new quality combat forces like special operations, electronic countermeasures, and unmanned systems, gradually building a future-oriented air force system.
Seek nothing but victory in war, sparing nothing for winning. The broad masses of air force personnel are actively engaging in training and war preparation, patrolling the East China Sea, conducting combat patrols in the South China Sea, honing forces in the Taiwan Strait, advancing to the Western Pacific, circumnavigating islands, and conducting trans-oceanic manoeuvres, with the flight paths of fighter jets continuously extending.”
从海岛的雷达站到地面防空兵，每天数万名空军官兵全时战备值班；空中维权、防空识别区管控，仅一个航空兵旅每年战斗起飞就达数百架次；由一架架战机、一枚枚导弹、一部部雷达织就的“天网”不断延展……人民空军向战而行，努力锻造召之即来、来之能战、战之必胜的空天劲旅。习主席强调：“要强化实战准备，牢固树立练兵打仗、带兵打仗思想，牢固树立随时准备打仗的思想，牢固树立立足现有条件打胜仗的思想，狠抓各项战备制度落实，保持常备不懈的战备状态，确保遇有情况能够快速有效处置，坚决完成空军担负的各项军事斗争任务。”党的十八大以来，空军党委坚决贯彻习主席重要指示要求，始终坚持把备战打仗作为第一要务，牢固树立战斗力这个唯一的根本的标准，不断拓展训练内容、创新训练方式，部队战斗力建设“换挡提速”。——坚持战训耦合提升训练水平。持续加大对抗空战、远海远洋、远程机动等课目比重，上高原、赴远洋、飞边界等成为常态，“空降尖兵”“机务尖兵”等群众性练兵比武活动越来越贴近实战。——坚持科技练兵深化能力生成。加速推进武器升级换代，向特战、电抗、无人等新域新质作战力量倾斜，逐步建成面向未来的空天力量体系。除了胜战一无所求，为了打赢一无所惜。广大空军官兵积极投身练兵备战，警巡东海、战巡南海、砺兵台海、前出西太、绕岛巡航、跨洋机动，战机航迹不断延伸。
The final section of the article confirms that the J-35A stealth fighter will make an appearance at the 15th China International Aviation and Aerospace Exhibition, which begins tomorrow. It also talks about PLAAF’s role in diplomacy, providing humanitarian aid to Maldives and Nepal along with “70 countries in Asia, Africa, Europe, and Oceania”.
Global Times’ article talks about the weapons that we can expect to see during the Zhuhai Airshow. These include the J-35A medium-sized stealth fighter, the HQ-19 surface-to-air missile weapon system and a new attack reconnaissance unmanned aerial vehicle. The report adds:
“The PLA Air Force will bring 36 types of equipment for aerial flight demonstrations and ground static displays to showcase the development of its equipment in a comprehensive and close-up manner…” It quotes expert Fu Qianshao as saying that the HQ-19 “is comparable to the US-made THAAD weapon system. The THAAD weapon system can intercept hostile ballistic missiles outside the atmosphere, and intercept targets at the upper levels of the atmosphere. The US relies on the Patriot air defense weapon system at the lower levels. ‘The HQ-9B and HQ-19 have formed a similar system, capable of intercepting the middle and end of the missile in outer space, the upper atmosphere and the lower atmosphere. The official debut of the HQ-19 marked the construction of the PLA Air Force integrating air and space, both offensive and defensive, making significant achievements, and reaching a new level’.”
Next, there’s a Ren Ping commentary on the state of the economy.
Brief note: I thought that this was really useful to read to get a sense of the argument that the central leadership is making for its agenda. There clearly is a deep sense of concern about the state of affairs, but also evident is the willingness to stay the course. It’s a timely reminder that the goal remains high-quality development and focussing on transforming the development model, emphasising technology-driven growth. It is also worth noting that the external environment is listed as the first in the list of challenges that China’s economy faces.
Anyway, the piece begins by accepting that GDP data for the first three quarters has not been the greatest. It acknowledges that “the year-on-year economic growth rates of 5.3%, 4.7% and 4.6% have shown a downward trend. Looking at the third quarter alone, the growth rates of major economic indicators in July and August fell. As a result, there are doubts about the prospects for economic growth and the completion of annual goals and tasks.” 分季度看，5.3%、4.7%、4.6%的经济同比增速，呈下降趋势。单看第三季度，7、8月份主要经济指标增速回落。由此便对经济增长前景、完成全年目标任务等怀有疑虑.
But it argues that “in the first three quarters, China’s economy grew by 4.8% year-on-year, ranking among the top growth rates of major world economies. Although certain economies have relatively higher growth rates, their economic scale and increase are not in the same league as ours. More importantly, we have maintained reasonable growth in quantity on the premise of structural optimization, momentum transformation, and quality improvement. Looking around the world, ‘the scenery is still uniquely beautiful on this side’.” 更多的人既正视了困难，更看到了有利条件和因素。前三季度，我国经济同比增长4.8%，增速在世界主要经济体中位居前列；个别经济体增速虽然相对较高，但其经济总量和增量与我们不在一个量级。更重要的是，我们是在结构优化、动能转换、质量提升的前提下保持了量的合理增长。放眼全球，仍然是“风景这边独好”.
The author then identifies four key problems facing the Chinese economy:
First, the external environment has become more complex and severe. Global economic instability is rising, international political uncertainty is increasing, global trade protectionism is intensifying, and some countries are escalating containment and suppression efforts, increasing the pressure on China to stabilise foreign trade and investment.
Second, domestic demand remains sluggish. Residents’ capacity and willingness for consumption remain weak, there are challenges in investment stabilisation, and the vitality of private investment requires further stimulation.
Third, some enterprises are facing operational difficulties, including weak sales, declining profitability, and weakening market expectations.
Fourth, there are many risks and hidden dangers in some fields. Some regions have great difficulty in debt repayment, some local governments are facing fiscal challenges, some enterprises are laying off employees and cutting salaries, employment pressure for a younger demographic, such as college graduates, has increased, and the income growth rate of urban residents has slowed down.
一是外部环境更趋复杂严峻。世界经济不稳定性增强，国际政治不确定性增大，全球贸易保护加剧，一些国家的围堵打压持续加码，我国稳外贸、稳外资压力加大。二是内需不振。居民消费能力和消费意愿不强，稳投资难度加大，民间投资活力有待进一步激发。三是一些企业经营困难，面临销售疲软、效益下滑、市场预期走弱等情况。四是一些领域风险隐患较多。有的地方化债难度较大，有的基层财政困难，有的企业出现裁员降薪，高校毕业生等青年群体就业压力上升，城镇居民收入增速放缓.
Yet, the author contends that “the difficulties we are facing now are problems in development and pains in transformation, which can be completely overcome through hard work.” 当前我们遇到的困难，是发展中的问题、转型中的阵痛，经过努力是完全可以克服的.
To support this argument, the author says that policy measures that have been announced this year are finally having an effect.
“Since September, increasingly, there have been positive changes in economic operations in the fields of industry, consumption, investment, stock market, and real estate market. Market confidence has enhanced, social expectations have improved, and the growth rates of many economic indicators have rebounded. In general, we have withstood downward pressure, overcome difficulties and challenges, maintained the development trend of stable economic operation, structural adjustment and optimization, and continuous improvement of people’s livelihood, and the trend of economic performance shifting from bottoming out to subsequently stabilising and then moving towards recovery is becoming more evident. With the continued effectiveness of existing policies, the accelerated implementation of new policies, and the combined effects of these policies being released, positive factors and favourable conditions will continue to increase. In the fourth quarter, the economy is highly likely to show an upward trend, and the annual economic growth target is expected to be achieved. 效果正在显现。9月以来，工业、消费、投资和股市、楼市等领域经济运行出现的积极变化越来越多，市场信心增强，社会预期改善，不少经济指标增速回升。总的看，我们顶住下行压力、克服困难挑战，保持了经济平稳运行、结构调整优化、民生持续改善的发展态势，经济运行由探底到筑底再到回升的演变迹象越来越明显。随着存量政策持续显效，增量政策加快落地，政策组合效应持续释放，积极因素和有利条件将不断增多，四季度经济运行大概率呈回升向好态势，全年有望实现经济增长预期目标。
In the next section, the author calls for calm in the face of “normal fluctuations” and highlights the “structural adjustment” that is taking place. The article states that in the first three quarters of this year,
the proportion of the service industry as part of GDP increased by 0.3 percentage points compared with the same period last year. Its contribution rate to economic growth reached 53.9%
Investment in high-tech industries increased by 10.0% year-on-year, with the growth rate being 6.6 percentage points higher than that of total investment, maintaining double-digit growth for 7 consecutive months
the growth rate of investment in equipment and tools was 13 percentage points higher than that of total investment
investment in technological transformation of manufacturing industry increased by 9.5%
the output and export of integrated circuits increased by 26% and 22% year-on-year, respectively
the output and export of new energy vehicles increased by 31.7% and 12.5% year-on-year, respectively
推动结构调整，当多一份进取心。今年前三季度，服务业占GDP比重比去年同期上升0.3个百分点，对经济增长的贡献率达53.9%；高技术产业投资同比增长10.0%，增速比全部投资高6.6个百分点，连续7个月保持两位数增长，为新质生产力加快形成和经济结构加快转型升级提供有力支撑。化解转型阵痛，当多一份自信心。前三季度，设备工器具购置投资增速高于全部投资13个百分点，制造业技改投资增长9.5%；集成电路产量、出口同比分别增长26%、22%；新能源汽车产量、出口同比分别增长31.7%、12.5%……这是新旧动能加快转换的有力表现，让我们更有定力.
The piece then argues that “the favourable conditions for China’s economic development, such as a solid foundation, strong resilience and great potential, have not changed. China still enjoys advantages such as a super-large market, a complete industrial system, strong supporting capabilities and large growth space. At the same time, its economy is in a critical period of structural adjustment, transformation and upgrading. From the transformation of the development model to the optimization of industrial structure, the transformation of development quality and the transformation of development momentum, cyclical and structural challenges are intertwined. The pain of transformation cannot be avoided or circumvented.” 我国经济发展基础好、韧性强、潜力大等有利条件没有改变，我国拥有超大规模市场，产业体系完整、配套能力强、增长空间大等优势依然存在。同时，我国经济正处在结构调整、转型升级的关键期，从发展方式转型，到产业结构优化、发展质量变革、发展动能转换，周期性结构性矛盾相互交织，转型阵痛躲不开、绕不过.
It adds:
“At times like this, we must be all the more determined to press forward despite difficulties and forge new achievements. We must unswervingly follow the path of high-quality development, and we must not abandon or retreat just because of challenges, nor fall back into the old habit of pursuing inefficient, extensive growth. Fundamentally speaking, the key to breaking the ‘bottleneck’ that restricts China’s economic development lies in scientific and technological innovation. The key to Chinese-style modernization lies in scientific and technological modernization. To achieve high-quality development, we must rely on scientific and technological innovation to cultivate new momentum. The ‘2024 Global Innovation Index Report’ released recently shows that China is one of the economies with the fastest growth in innovation in the past 10 years, and innovative development is showing strong momentum and broad prospects.
We must also recognize that China’s technological development is at a critical stage—strong but not yet robust; it will regress if it does not advance. Some key core technologies are controlled by others, and there is a shortage of top scientific and technological talents. The process of moving from a large science and technology country to a strong science and technology country will inevitably encounter various obstacles and containment. Scientific and technological innovation cannot be achieved overnight; building it into a powerful force for development requires persistent, long-term effort. General Secretary Xi Jinping emphasised: ‘We must further enhance our sense of urgency, intensify efforts in scientific and technological innovation, and seize the commanding heights of technological competition and future development’. He has encouraged researchers to embrace the spirit of ‘how many times can one truly fight in life’ in order to innovate and create freely. The Decision of the Third Plenary Session of the 20th CPC Central Committee proposed ‘building a comprehensive system and mechanism to support innovation.’ Reforms that integrate the systems for education, science, technology, and talent are being implemented with urgency. Last year, China’s R&D investment exceeded 3.3 trillion yuan for the first time, ranking second in the world. Winning the battle of key and core technologies is neither something to rush nor something to delay. We must maintain strategic resolve and continue our efforts persistently. With time, we are certain to overcome ‘chokepoint’ issues and firmly seize the initiative in development. ‘As long as the path is right, distance is not to be feared’.” 越是这种时候，越要坚定迎难而上、再铸辉煌的决心和信心，必须坚定不移走高质量发展之路，决不能因为有困难和挑战就半途而废、回头倒退，习惯性回到追求粗放扩张、低效发展的老路上。从根本上说，打破制约我国经济发展的“瓶颈”，关键在科技创新。中国式现代化关键在科技现代化，实现高质量发展要靠科技创新培育新动能。前不久发布的《2024年全球创新指数报告》显示，中国是10年来创新力上升最快的经济体之一，创新发展正展现出强大动能和广阔前景。也要看到，我国科技发展正处于将强未强、不进则退的关键阶段，一些关键核心技术受制于人，顶尖科技人才不足。从科技大国迈向科技强国，必然会遭遇各种阻碍遏制。科技创新不可能一蹴而就，形成推动发展的强大动力需要一个久久为功的过程。习近平总书记强调，“必须进一步增强紧迫感，进一步加大科技创新力度，抢占科技竞争和未来发展制高点”，勉励科研工作者“拿出‘人生能有几回搏’的劲头，放开手脚创新创造”。党的二十届三中全会《决定》提出“构建支持全面创新体制机制”，统筹推进教育科技人才体制机制一体改革各项措施正加紧实施。去年我国研发投入R&D经费的总量首次超过3.3万亿元，居世界第二。打好关键核心技术攻坚战，既急不得，也等不得，要保持战略定力，持之以恒抓下去，相信假以时日，我们一定能突破“卡脖子”问题，牢牢掌握发展的主动权。“只要路走对了，就不怕遥远.”
Page 3: Two brief reports to note. First, a Chinese Tibetologists exchange group organised by the State Council Information Office visited Latvia from November 7th to the 10th. The report says that they “had in-depth exchanges and discussions with Latvian parliamentarians, university teachers and students on the development achievements of China’s Tibet in the new era, the inheritance and protection of Tibet’s excellent traditional culture, and Tibetan studies.” After Latvia, the group heads to Estonia.
Second, there’s a very brief report on China building cultural capital in Sri Lanka. This is through a set of events themed “Chinese Culture Meets Students in Sri Lanka.” Xinhua reports that the series of activities began in May at 11 Sri Lankan primary and secondary schools, showcasing Chinese traditional culture such as calligraphy, paper cutting, and martial arts and featuring photo exhibitions on Chinese culture and Chinese book donations. It all concluded last week with 48 Sri Lankan primary and secondary school students being awarded prizes for essay writing, calligraphy, paper cutting, and painting competitions.
Page 4: There’s a report on the statement issued by the Chinese government with geographic coordinates for the baselines around Scarborough Shoal or Huangyan Dao. The Chinese foreign ministry said that “the delimitation and declaration of the territorial sea baselines is a natural step by the Chinese government and is consistent with international law and common practices.”
The Global Times reports:
“The Chinese government delimited and announced the baselines of the territorial sea adjacent to Huangyan Dao, which is a natural step to lawfully strengthen marine management and is consistent with international law and common practices, a Chinese Foreign Ministry spokesperson said on Sunday. The spokesperson said that Huangyan Dao has always been China’s territory. In accordance with international law, such as the United Nations Convention on the Law of the Sea, and the Law of the People's Republic of China on the Territorial Sea and the Contiguous Zone, the Chinese government delimited and announced the baselines of the territorial sea adjacent to Huangyan Dao. The government statement on Sunday said the baselines were announced in accordance with the Law of the People's Republic of China on the Territorial Sea and the Contiguous Zone promulgated on February 25, 1992.”
Page 13: There is a report informing that as per the State Administration of Taxation, during the first three quarters of the year, tax reductions, fee cuts, and tax refunds related to technological innovation and the development of the manufacturing industry amounted to around 2.087 trillion yuan.
Policies supporting increased investment in science and technology, including additional R&D expense deductions, technology transfer, and attraction and training of scientific talents resulted in tax and fee reductions plus tax refunds of 893.7 billion yuan;
Policies supporting high-quality development of manufacturing industry, including additional VAT deductions and refunds for advanced manufacturing enterprises, resulted in tax and fee reductions plus tax refunds of 810.7 billion yuan;
Policies supporting the cultivation and development of high-tech enterprises and emerging industries, including reducing corporate income tax rate to 15% for high-tech enterprises and exempting new energy vehicles from purchase tax, resulted in tax reductions of 302.5 billion yuan;
Policies supporting equipment renewal and technical transformation, including one-time pre-tax deduction for equipment and appliances purchased below 5 million yuan, resulted in tax reductions of 80 billion yuan.
国家税务总局最新发布的数据显示，前三季度，现行政策中支持科技创新和制造业发展的主要政策减税降费及退税20868亿元。其中，研发费用加计扣除等支持加大科技投入、成果转让和科技人才引进及培养的政策减税降费及退税8937亿元；先进制造业企业增值税加计抵减和留抵退税等支持制造业高质量发展的政策减税降费及退税8107亿元；高新技术企业减按15％税率征收企业所得税、新能源汽车免征车辆购置税等支持培育发展高新技术企业和新兴产业的政策减税3025亿元；购买500万元以下设备器具一次性税前扣除等支持设备更新和技术改造的政策减税800亿元.
Another report with data from PBOC says that “as of the end of the third quarter, the balance of green loans in RMB and foreign currencies in China was 35.75 trillion yuan, a year-on-year increase of 25.1%, 17.5 percentage points higher than that of all loans, and an increase of 5.67 trillion yuan in the first three quarters. Among them, loans invested in projects with direct and indirect carbon emission reduction benefits were 11.86 trillion yuan and 12.04 trillion yuan, respectively, accounting for 66.8% of green loans in total.”