Praising Xi's Economic Policies - Ren Zhongping Eulogises COVID Policies - Detailed Breakdown of the New Guideline for Expanding Domestic Demand - Podcast on China's Engagement in Indian Subcontinent
Hi folks,
Before you get to today’s paper, I am sharing below this episode of the podcast by Georgetown University’s Initiative for U.S.-China Dialogue on Global Issues, where I was invited to talk about China’s engagement in the Indian subcontinent.
The full transcript of the conversation is also available here.
Here are the stories and pieces that I found noteworthy in the Thursday, December 15, 2022, edition of the People’s Daily.
Page 1: At the top of the page is a report on Xi’s remarks at the Latin American entrepreneurs summit. Xinhua reports:
“Xi pointed out that China will adhere to the basic national policy of opening up, firmly pursue a win-win strategy of opening-up, keep to the right direction of economic globalisation, continue to provide new opportunities for the world with China's new development, promote the building of an open world economy, and deliver more benefits to the people of all countries including Latin American and Caribbean countries (LAC). He noted that since its inception 15 years ago, the China-Latin America Entrepreneurs Summit, with a focus on serving enterprises, has played an important role in promoting China-Latin America economic and trade cooperation, as well as deepening bilateral people-to-people exchanges. China-Latin America relations have entered a new era of equality, mutual benefit, innovation, openness and shared benefits, he said, adding that the business community is a new force for China-Latin America practical cooperation, as well as a builder and beneficiary of the growth of bilateral ties.”
Next, there’s a front page article praising Xi’s leadership for China’s economic development over the past decade.
It says that in the past 10 years, China’s “economic strength has achieved a historic leap, the GDP has doubled, and the average contribution rate to world economic growth has exceeded 30%; the balance, coordination and sustainability of development have been significantly enhanced, and we are on the road of higher quality, more efficiency, more fairness, more sustainability and more security. Looking ahead, in the face of complex and severe risks, challenges and arduous tasks, China's economic resilience has been further highlighted, its potential and vitality have been continuously released, and various advantages and conditions have provided strong support, and its long-term positive fundamentals will not change. On the new journey of building a modern socialist country in all respects, under the guidance of the CPC Central Committee with comrade Xi Jinping at the core and the scientific guidance of Xi Jinping's economic thought, the whole Party and people of all ethnic groups across the country are confident and self-reliant, facing difficulties and working together to break through the waves along the high-quality development channel and move steadily toward a brighter future.” 回望来路，成绩彪炳史册：新时代十年，我国经济实力实现历史性跃升，国内生产总值翻了一番，对世界经济增长的平均贡献率超过30%；发展平衡性、协调性、可持续性明显增强，迈上更高质量、更有效率、更加公平、更可持续、更为安全的发展之路。展望前途，面对复杂严峻风险挑战和艰巨繁重任务，中国经济的韧性进一步凸显、潜力和活力持续释放，多方面优势和条件构筑有力支撑，长期向好的基本面不会改变。稳字当头，稳中求进。踏上全面建设社会主义现代化国家新征程，在以习近平同志为核心的党中央掌舵领航下，在习近平经济思想科学指引下，全党全国各族人民自信自立、迎难而上、团结奋斗，推动中国经济沿着高质量发展航道破浪前行，向着更加光明的未来行稳致远.
The second section of the article says that:
In the past three years, in the face of the ups and downs of the pandemic, the CPC Central Committee with comrade Xi Jinping as the core efficiently coordinated epidemic prevention and control and economic and social development, and led China to deliver a remarkable a report card that has attracted worldwide attention:
in 2020, China became the world's first major economy to achieve positive economic growth;
in 2021, China’s GDP exceeded 110 trillion yuan, with an average growth rate of 5.1% over two years
in 2022, the economy withstood pressure, made steady progress, and continued to consolidate the recovery trend…
近三年来，面对疫情跌宕反复，以习近平同志为核心的党中央高效统筹疫情防控和经济社会发展，带领中国交出世所瞩目的成绩单：2020年成为全球率先实现经济正增长的主要经济体；2021年经济规模突破110万亿元，两年平均增长5.1%；2022年经济顶住压力、稳中求进，持续巩固回升态势…
“In December 2012, at the first Central Economic Work Conference after the 18th Party Congress, General Secretary Xi Jinping delivered an important speech emphasising: ‘Development is the Party’s top priority in governing and rejuvenating the country. As the ruling party, we must earnestly strengthen the Party's leadership over economic work and do a solid job in economic work’ … the Party's leadership over economic work has been continuously improved in the past 10 years, guiding China’s economy to face difficulties and achieve steady and long-term progress.” 2012年12月，党的十八大后第一次中央经济工作会议上，习近平总书记发表重要讲话强调：“发展是党执政兴国的第一要务，作为执政党，我们必须切实加强党对经济工作的领导，扎扎实实做好经济工作。”潮头掌舵，十年来党领导经济工作的体制机制不断完善，护航中国经济迎难而上、行稳致远.
Then we get an explanation of which organ and meeting does what:
“The National Congress of the Party and the Plenary Session of the Central Committee determine the direction of development; the Central Economic Work Conference makes annual arrangements for economic development; the Politburo Standing Committee and the Political Bureau of the Central Committee regularly study and analyse the economic situation and make decisions on major economic issues; the Central Financial and Economic Affairs Commission and theCentral Comprehensively Deepening Reforms Commission study major issues and major reforms in a timely manner…Faced with major historical junctures, major missions and tasks, and major issues of the times, the CPC Central Committee with comrade Xi Jinping as the core has made sober judgments, made scientific decisions, and acted boldly, playing a decisive role as the backbone and anchor.” 党的全国代表大会和中央全会谋定发展方向；中央经济工作会议对经济发展作出年度部署；中央政治局常委会、中央政治局定期研究分析经济形势，决策重大经济事项；中央财经委员会（领导小组）和中央全面深化改革委员会（领导小组）及时研究经济社会发展的重大问题和重大改革……在重大历史关头、重大使命任务、重大时代课题面前，以习近平同志为核心的党中央清醒判断、科学决策、果敢行动，发挥了主心骨、定盘星的决定性作用.
And there’s more praise for Xi again:
Since the 18th Party Congress, General Secretary Xi Jinping has profoundly summed up the successful experience of my country's economic development, proceeded from the new reality, put forward a series of new ideas, new thoughts and new strategies, and established Xi Jinping Economic Thought, which has become the fundamental guideline and action guide for doing a good job in economic work in the new era, guiding China's economy to a new level. 党的十八大以来，习近平总书记深刻总结我国经济发展的成功经验，从新的实际出发，提出一系列新理念新思想新战略，形成了习近平经济思想，成为新时代做好经济工作的根本遵循和行动指南，指引中国经济不断迈上新台阶.
This is followed by specific achievement of economic growth, poverty alleviation, improvement of basic socialist economic system, coordination of development and security, guaranteeing of food and energy security, etc. It also says that in response to China-US trade frictions, China has stood at “the right side of history…resolutely defended the interests of the country and the people, and resolutely defended free trade and the multilateral system.” 应对中美经贸摩擦，始终站在历史正确的一边，重塑中美经贸关系，坚决捍卫国家和人民利益，坚决捍卫自由贸易和多边体制；
After this, again we get praise for Xi for having “keen insights” into the challenges facing China’s development.
The second section of the article praises Xi for identifying the new development concept and pursuing its implementation. It praises the Central Committee with Xi as the core for putting China’s economy on the path of high-quality development. We get examples of China’s innovation-driven development and the work being done to build a “high-standard market system.”
The third section talks about Xi’s promotion of the new development pattern or dual circulation. It says that Xi has been personally engaged in the CIIE; he “personally planned, proposed, deployed and promoted” the expo, the piece says. 2018年以来，习近平总书记亲自谋划、亲自提出、亲自部署、亲自推动的进博会年年如约而至，届届客商云集. At the core, the assessment that led to this shift is:
“In today's world, the external environment is becoming increasingly complex, the global industrial chain and supply chain are facing challenges, and the traditional international cycle is weakening. Compared with the past, the environmental conditions for large-scale imports and exports have changed. Only by standing on our own feet and giving full play to the domestic super-large-scale market advantages can we shape China’s new advantages in participating in international cooperation and competition. 当今世界，国际环境日趋复杂，全球产业链供应链面临冲击，传统国际循环弱化。相比以前，我国大进大出的环境条件已经变化，只有立足自身，充分发挥国内超大规模市场优势，才能塑造我国参与国际合作和竞争新优势.
The piece talks about the focus on expanding domestic demand to achieve this goal, and to continue opening up. In the process of the latter, it talks about BRI.
“Since General Secretary Xi Jinping put forward the major initiative of BRI, in 9 years, 150 countries and 32 international organisations have signed more than 200 cooperation documents with China.” The section also talks about the work done to “ensure the supply of primary products” which is “a major strategic issue.” This includes allocating agricultural transfer payment of 211.5 billion yuan in advance for 2023, focusing on grain and livestock breeding research, efforts to connect the supply and demand of key materials such as energy and grain and ensuring transportation; construction of the No.4 pipeline of China's west-to-east gas transmission project; the opening of the first deep-water deep gas field, etc.
The final section talks about the improvement of livelihood and well-being of the people. In this, the article mentions COVID containment and common prosperity.
Next, there’s the full guideline on expanding domestic demand, i.e., the “Strategic Planning Guideline for Expanding Domestic Demand (2022-2035).”
The document says that boosting domestic demand is a “strategic decision to promote China’s long-term development and long-term stability” and is “an inevitable choice to accelerate the construction of a new development pattern.”
I. The first section of the document provides the background conditions, significance and opportunities and challenges.
I thought this is useful to share in detail.
Background
“The basic role of consumption continued to strengthen. Final consumption expenditure as a share of GDP has remained above 50% for 11 consecutive years. Traditional consumption such as housing and transportation consumption has increased significantly, the per capita housing construction area of urban residents has increased steadily, and the sales of new cars have ranked first in the world for 13 consecutive years. New forms and models of consumption are developing rapidly. In 2021, the online retail sales of physical goods accounted for 24.5% of the total retail sales of social consumer goods, and the per capita service consumption expenditure accounted for 44.2% of the per capita consumption expenditure.
The key role of investment will be better played. The proportion of China’s gross capital formation to GDP has remained at a reasonable level, which provides a strong support for optimising the supply structure and promoting the steady economic development. The level of infrastructure construction has been improved in an all-round way, the national comprehensive transportation channel has been speeded up, and a number of major water conservancy facilities have been completed and put into use. The construction of new infrastructure, such as 5G stations, has been accelerated; significant achievements have been made in the construction of major scientific and technological projects; and investment in high-tech industries has continued to grow rapidly. Shortcomings and weaknesses in health care, eco-environmental protection, agriculture and rural areas, education, etc. will be filled.
The domestic market operation mechanism has been continuously improved. The construction of a high-standard market system has been accelerated, the reform related to ‘streamlining administration, delegating power, strengthening regulation and improving services’ has continued to deepen, the business environment has been continuously optimised, key reforms such as market-oriented allocation of factors and property rights system have been steadily advanced, the circulation system has been accelerated and improved, the social security system has been gradually improved, the basic public service system for coordinating urban and rural areas has been accelerated, and the market vitality has been effectively stimulated.
The international and domestic markets are more closely linked. China’s GDP is over 110 trillion yuan, and it has become the second-largest commodity consumption market in the world, driving the continuous expansion of imports and optimisation of its structure. International economic and trade cooperation has been solidly promoted, and the construction of the highland of opening to the outside world has made remarkable progress. China has become one of the most attractive countries for foreign capital inflows, and the quality of foreign capital utilisation has continued to improve. The Chinese market and the global market have further coordinated development and mutual benefit.” 消费基础性作用持续强化。最终消费支出占国内生产总值的比重连续11年保持在50%以上。住行消费等传统消费显著增长，城镇居民人均住房建筑面积稳步提高，汽车新车销量连续13年位居全球第一。消费新业态新模式快速发展，2021年实物商品网上零售额占社会消费品零售总额比重为24.5%，人均服务性消费支出占人均消费支出比重为44.2%。投资关键作用更好发挥。我国资本形成总额占国内生产总值的比重保持在合理水平，为优化供给结构、推动经济平稳发展提供了有力支撑。基础设施建设水平全面提升，全国综合运输大通道加快贯通，一批重大水利设施建成使用。5G等新型基础设施建设加快推进，重大科技项目建设取得显著成就，高技术产业投资持续较快增长。医疗卫生、生态环保、农业农村、教育等领域短板弱项加快补齐。国内市场运行机制不断健全。高标准市场体系加快建设，“放管服”改革持续深化，营商环境不断优化，要素市场化配置、产权制度等重点改革稳步推进，流通体系加快健全，社会保障制度逐步完善，统筹城乡的基本公共服务体系加快形成，市场活力得到有效激发。国际国内市场联系更加紧密。我国国内生产总值超过110万亿元，已成为全球第二大商品消费市场，带动进口规模持续扩大、结构不断优化。国际经贸合作扎实推进，对外开放高地建设进展显著，我国成为最具吸引力的外资流入国之一，利用外资质量不断提高，我国市场与全球市场进一步协调发展、互惠互利.
b. Under significance, the document makes four points:
The implementation of the strategy of expanding domestic demand is to meet the real needs of the people's yearning for a better life. This is because China has moved away from high growth to high-quality growth and people’s needs have moved from the need for/lack of things to focussing on the quality.
Implementing the strategy of expanding domestic demand is an active choice to give full play to the advantages of a super-large-scale market.
Implementing the strategy of expanding domestic demand is an inevitable requirement in response to profound changes in the international environment. Basically “profound changes unseen in a century are accelerating, the balance of international power is being adjusted profoundly, the impact of the COVID-19 pandemic is extensive and far-reaching, uncertainty in global economic growth is increasing, and unilateralism, protectionism, and hegemony pose threats to world peace and development…” 实施扩大内需战略是应对国际环境深刻变化的必然要求. 世界百年未有之大变局加速演进，国际力量对比深刻调整，新冠肺炎疫情影响广泛深远，世界经济增长不平衡不确定性增大，单边主义、保护主义、霸权主义对世界和平与发展构成威胁.
Implementing the strategy of expanding domestic demand is the key support to promote the economic cycle with higher efficiency. The key to building a new development pattern lies in the unimpeded economic circulation. To promote a smoother domestic circulation, we must firmly implement the strategy of expanding domestic demand, break through the blocking points of economic circulation, and consolidate the domestic basic market; to realise the mutual promotion of domestic and international dual circulation, we must also firmly implement the strategy of expanding domestic demand, better rely on the large domestic market, make effective use of global factors and market resources, more efficiently connect domestic and foreign markets, and promote the development of a higher level of domestic circulation. 实施扩大内需战略是更高效率促进经济循环的关键支撑。构建新发展格局关键在于经济循环的畅通无阻。促进国内大循环更为顺畅，必须坚定实施扩大内需战略，打通经济循环堵点，夯实国内基本盘；实现国内国际双循环相互促进，也必须坚定实施扩大内需战略，更好依托国内大市场，有效利用全球要素和市场资源，更高效率实现内外市场联通，促进发展更高水平的国内大循环.
c. Under opportunities and challenges, the document says that China has a “more solid domestic market foundation” and generally, the opportunities outweigh the challenges.
Opportunities: “Looking at the future, the domestic market will dominate the national economic cycle. Consumption has become the main driving force of my country's economic growth. The optimization and upgrading of residents' consumption is combined with modern technology and production methods. China is the most potential consumer market in the world, and this will continue to grow and expand. China is in the rapid development stage of new industrialisation, informatization, urbanisation and agricultural modernisation. Compared with developed countries, there is still a large investment space in many aspects, and the investment demand potential is huge. At the same time, the systemic advantages of Socialism with Chinese characteristics are remarkable; China’s macroeconomic governance capacity continues to improve and reform and innovation are constantly breeding new development impetus. The construction of a unified national market has been accelerated; the environment and systems for commodity and factor circulation have continued to improve; and the quality and allocation of China’s production factors have also significantly improved… 进入新发展阶段，我国国内市场基础更加扎实，实施扩大内需战略的环境条件深刻变化。展望未来一段时期，国内市场主导国民经济循环特征会更加明显，消费已成为我国经济增长的主拉动力，居民消费优化升级同现代科技和生产方式相结合，我国这一全球最有潜力的消费市场还将不断成长壮大。我国正处于新型工业化、信息化、城镇化、农业现代化快速发展阶段，与发达国家相比，在很多方面还有较大投资空间，投资需求潜力巨大。同时，中国特色社会主义制度优势显著，宏观经济治理能力持续提升，改革创新不断孕育新的发展动力，全国统一大市场加快建设，商品和要素流通制度环境持续改善，我国生产要素质量和配置水平显著提升，国内市场空间更趋广阔.
Challenges: That said, China still faces many constraints in expanding domestic demand. The tightening of factors such as labour, land and the environment restricts investment growth; innovation capacity is not adequate to fully meet the requirements of high-quality development, and individual and diversified consumption needs of the masses are not being effectively met. There is a large gap between urban and rural development and income distribution; there are shortcomings in people's livelihood security; hidden risks in financial and other sectors cannot be ignored, and there are still many systemic and institutional blocking points that restrict the release of domestic demand potential. International competition is becoming increasingly fierce, and there is still a long way to go to establish the ‘gravitational pull’ of China to attract international high-end factor resources. 同时要看到，我国扩大内需仍面临不少制约。劳动力、土地、环境等要素趋紧制约投资增长，创新能力不能完全适应高质量发展要求，群众个性化、多样化消费需求难以得到有效满足；城乡区域发展和收入分配差距较大，民生保障存在短板，财政金融等领域风险隐患不容忽视，制约内需潜力释放的体制机制堵点仍然较多；国际竞争日趋激烈，把我国打造成国际高端要素资源的“引力场”任重道远.
II. The second part of the document outlines the guiding ideology, working principles, goals and key tasks. I’ll do a quick summary of each.
a. Working principles:
Adhere to party leadership
Adhere to improvement of people’s livelihood and well-being
Adhere to top-level design and serve the overall strategy
Adhere to reform and opening up, and enhance endogenous drive - basically use reform and opening to release and stimulate the market potential, give full play to the decisive role of the market in resource allocation, give better play to the role of the government, break down the institutional barriers that restrict the growth of domestic demand, continuously improve the efficiency of factor allocation and product circulation, and at the same time, open to the outside world at a higher level, make full use of international high-end factor resources, and continuously enhance the vitality of the domestic market. 坚持改革开放，增强内生动力。坚定不移用改革的办法释放和激发市场潜力，把有效市场和有为政府结合起来，充分发挥市场在资源配置中的决定性作用，更好发挥政府作用，破除制约内需增长的体制机制障碍，不断提高要素配置和产品流通效率，同时实施更高水平对外开放，充分利用国际高端要素资源，持续增强国内市场活力.
Adhere to the system concept and strengthen coordination and efficiency
b. Development Goals. First, the broad goals by 2035:
A complete domestic demand system will be established in all respects
New industrialisation, informatization, urbanisation, and agricultural modernisation have been basically realised, the construction of a strong domestic market has made greater achievements, major breakthroughs have been made in key core technologies, and the domestic circulation driven by innovation and driven by domestic demand has become more efficient and smooth
The per capita income of urban and rural residents has reached a new level, the middle-income group has been significantly expanded, basic public services have been equalised, the gap between urban and rural development and the gap between residents' living standards has been significantly narrowed, and more obvious, substantive progress has been made towards achieving common prosperity for all;
Reform has substantially increased its role in supporting domestic demand, the high-standard market system has become more perfect, and the modern circulation system has been fully built; China's advantages in participating in global economic cooperation and competition have been continuously enhanced, and the international influence of the domestic market has been greatly enhanced.
按照全面建设社会主义现代化国家的战略安排，展望2035年，实施扩大内需战略的远景目标是：消费和投资规模再上新台阶，完整内需体系全面建立；新型工业化、信息化、城镇化、农业现代化基本实现，强大国内市场建设取得更大成就，关键核心技术实现重大突破，以创新驱动、内需拉动的国内大循环更加高效畅通；人民生活更加美好，城乡居民人均收入再迈上新的大台阶，中等收入群体显著扩大，基本公共服务实现均等化，城乡区域发展差距和居民生活水平差距显著缩小，全体人民共同富裕取得更为明显的实质性进展；改革对内需发展的支撑作用大幅提升，高标准市场体系更加健全，现代流通体系全面建成；我国参与全球经济合作和竞争新优势持续增强，国内市场的国际影响力大幅提升。
These broad goals are then translated into goals to be achieved during the 14th FYP period. There is no quantitative target given, however.
c. Key Tasks
Adhere to problem orientation and focus on key tasks of implementing the strategy of expanding domestic demand in the medium and long term, such as insufficient effective supply capacity, large distribution gap, low modernisation of circulation system, imperfect consumption system and mechanism, and lack of optimization of investment structure.
Accelerate the development of a complete system of domestic demand; this entails improving the supply quality, optimising the distribution pattern, perfecting the circulation system, comprehensively promoting consumption and expanding the investment space.”...培育由提高供给质量、优化分配格局、健全流通体系、全面促进消费、拓展投资空间等共同组成的完整内需体系.
Focus on formation of a strong domestic market. This entails promoting new urbanisation and the coordinated development of urban and rural areas and optimising market structure, improving market mechanism, stimulating market vitality and enhancing market resilience.
Support smooth domestic circulation
III. This section talks about specific types of consumption that must be boosted. This includes:
Traditional consumption: This includes food, clothing, transportation (particularly smart automobiles and related facilities like parking spaces, etc.), demand for high-end consumer goods, tourism and housing. In regard to housing, the document calls for adherence to the principle of “homes are for living, not for speculation,” it talks about boosting rental housing and and calls for “steadily implementing a long-term mechanism for stable and healthy development of the real estate market, support residents' reasonable self-occupation needs, curb speculative investment demand, and stabilise land prices, house prices and expectations.” 促进居住消费健康发展。坚持“房子是用来住的、不是用来炒的”定位，加强房地产市场预期引导，探索新的发展模式，加快建立多主体供给、多渠道保障、租购并举的住房制度，稳妥实施房地产市场平稳健康发展长效机制，支持居民合理自住需求，遏制投资投机性需求，稳地价、稳房价、稳预期。完善住房保障基础性制度和支持政策，以人口净流入的大城市为重点，扩大保障性租赁住房供给。因地制宜发展共有产权住房。完善长租房政策，逐步使租购住房在享受公共服务上具有同等权利。健全住房公积金制度。推进无障碍设施建设，促进家庭装修消费，增加智能家电消费，推动数字家庭发展.
Service consumption: In this, the document talks about cultural and tourism consumption, elderly care and child care services, healthcare services, boosting quality education services, sports facilities and services, housekeeping industry and public services.
New types of consumption: In this, the document talks about the “integrated development of online and offline commodity consumption.” It calls for “enriching the application scenarios of 5G networks and gigabit optical networks” and supporting “autonomous driving and unmanned delivery systems,” setting up “smart supermarkets, smart shops and smart restaurants”, standardise the regulation and development of platform economies in accordance with the law, and enhance the ability to supervise/regulate new forms of business.” 支持线上线下商品消费融合发展。加快传统线下业态数字化改造和转型升级。丰富5G网络和千兆光网应用场景。加快研发智能化产品，支持自动驾驶、无人配送等技术应用。发展智慧超市、智慧商店、智慧餐厅等新零售业态。健全新型消费领域技术和服务标准体系，依法规范平台经济发展，提升新业态监管能力. In addition, the section talks about building a new model of “Internet+social services”, online entertainment and internet + health businesses, etc, and encouraging “smart tourism, smart radio and television, and smart sports.” It talks about support for the sharing economy, particularly in regard to “shared travel, shared accommodation and shared tourism”. Then this is important: “Create a new driving force for shared production, encourage enterprises to open platform resources, and fully tap the application potential of idle stock/unused resources. Encourage manufacturing enterprises to explore business models and application scenarios for shared manufacturing. Follow the trend of advances in the Internet, information technology and other technologies, and support and guide the healthy development of new ways of living and consuming. 打造共享生产新动力，鼓励企业开放平台资源，充分挖掘闲置存量资源应用潜力。鼓励制造业企业探索共享制造的商业模式和适用场景。顺应网络、信息等技术进步趋势，支持和引导新的生活和消费方式健康发展. The section also talks about supporting the individual economy, such as businesses, webcasts, knowledge dissemination, etc. It says: “Support the standardised and orderly development of online diversified social and short video platforms, and encourage innovations such as micro-applications, micro-products and micro-movies.” 支持线上多样化社交、短视频平台规范有序发展，鼓励微应用、微产品、微电影等创新.
Green and low-carbon consumption: In this, the article talks about supporting green and low-carbon products. “Improve the green procurement system and increase the government’s efforts to purchase low-carbon products. Establish and improve green product standards, labels, certification systems and ecological product value realisation mechanisms. Accelerate the establishment of a recycling system for waste and old materials, and standardise the development of the recycling industry for automobiles, power batteries, home appliances, and electronic products.” 完善绿色采购制度，加大政府对低碳产品采购力度。建立健全绿色产品标准、标识、认证体系和生态产品价值实现机制。加快构建废旧物资循环利用体系，规范发展汽车、动力电池、家电、电子产品回收利用行业. It also calls for promoting green and low-carbon lifestyles, through actions like green public transportation, water-saving actions and promoting “rational consumption.”
IV. Section four talks about optimising investment structure. In this, the focus is on:
Increasing support for the manufacturing industry: This entails support for upgrading of traditional manufacturing, investments in advanced manufacturing, improving the quality and efficiency of the manufacturing supply system, and supporting enterprises to apply innovative technologies and products to implement technological transformation.
Promoting investments in key areas: This includes investment in transportation, energy infrastructure, logistics, water conservancy, environmental protection and livelihood related infrastructure. I am detailing below two of these: transportation and energy.
In this, transportation covers many areas. But some key bits to note are:
Building strategic rail corridors in central and western regions and along the Yangtze River and coastal areas, speeding up the construction of the national railway network, supporting key urban agglomerations to take the lead in building intercity railway networks, promote the development of urban rail transit networks in key metropolitan areas, and integrating them with trunk railways.
In terms of aviation, “accelerate the development of international and regional hub airports, actively promote the development of regional airports and general airports, and promote the development of world-class airport clusters in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and Chengdu-Chongqing region.”
Energy infrastructure covers improving the “security and intelligence of the power grid,” “building key projects of trans-provincial and trans-regional transmission channels in an orderly manner, actively promoting the transformation of distribution network and the construction of rural power grid, and improving the transmission and distribution capacity to remote areas.” 提升电网安全和智能化水平，优化电力生产和输送通道布局，完善电网主网架布局和结构，有序建设跨省跨区输电通道重点工程，积极推进配电网改造和农村电网建设，提升向边远地区输配电能力.
“Optimise the structure of coal production and transportation, promote the intelligent and green development of coal mines, optimise the construction of five coal supply guarantee bases in western Mongolia, eastern Mongolia, northern Shaanxi, Shanxi and Xinjiang. Accelerate the construction of national trunk oil and gas pipelines and make intensive arrangements and orderly progress in the planning and construction of LNG terminals and refuelling stations for vehicles and ships. Significantly improve the utilisation of clean energy, build clean energy bases with multiple and complementary energy sources, and speed up the construction of large-scale wind power and solar power bases, especially in desert areas. Promote the ultra-low emission and energy-saving transformation of active coal-fired power units, and improve the clean and efficient development level of coal-fired power. Promote the construction of a new power system and improve the capacity of clean energy consumption and storage.” 优化煤炭产运结构，推进煤矿智能化、绿色化发展，优化建设蒙西、蒙东、陕北、山西、新疆五大煤炭供应保障基地，提高煤炭铁路运输能力。加快全国干线油气管道建设，集约布局、有序推进液化天然气接收站和车船液化天然气加注站规划建设。大幅提高清洁能源利用水平，建设多能互补的清洁能源基地，以沙漠、戈壁、荒漠地区为重点加快建设大型风电、光伏基地。统筹推进现役煤电机组超低排放和节能改造，提升煤电清洁高效发展水平。推动构建新型电力系统，提升清洁能源消纳和存储能力.
Boosting new infrastructure: It calls for “accelerating the development of the Internet of Things, the industrial Internet, the satellite Internet, and the fibre optical network; building a national system of integrated big data centres; developing national hubs for big data centres; promoting the extensive and in-depth application of AI and cloud computing; and promoting the mutual integration and intelligent allocation of cloud, network, and terminal resources.” 加快物联网、工业互联网、卫星互联网、千兆光网建设，构建全国一体化大数据中心体系，布局建设大数据中心国家枢纽节点，推动人工智能、云计算等广泛、深度应用，促进“云、网、端”资源要素相互融合、智能配置. It also adds: “promote the deep integration of 5G, artificial intelligence, big data and other technologies with transportation and logistics, energy, ecological and environmental protection, water conservancy, emergency response, and public services, and help improve the governance capacity of relevant industries. Support the transformation and upgrading of TV networks using 5G technology. Actively yet prudently develop the Internet of vehicles.” 推动5G、人工智能、大数据等技术与交通物流、能源、生态环保、水利、应急、公共服务等深度融合，助力相关行业治理能力提升。支持利用5G技术对有线电视网络进行改造升级。积极稳妥发展车联网.
V. Section 5 talks about coordinated development of urban and rural areas. Under this, there are three broad policy areas:
New urbanisation: One part of this talks about reforming the household registration system,
Rural modernisation
Coordinated regional development
VI. Section 6 talks about improving quality of supply to boost demand. In this, the document talks about improving self-reliance in science and technology, upgrading traditional industries and improving quality standards and branding.
The technology bit calls for investing in basic research, investing in key core technologies, focusing on projects in “frontier fields such as artificial intelligence, quantum information, and brain science,” enhancing focus on “basic parts and components, key basic materials, key basic software, advanced basic technology and industrial technology foundation” and strengthening the “effective connection between scientific research and market applications, support industry-university-research collaboration, and promoting the integrated development of industrial chains, innovation chains, and ecological chains.”
It also talks about focussing on strategic emerging industries and building advanced manufacturing clusters.
“Vigorously promote the development of national clusters of strategic emerging industries and build national bases for strategic emerging industries. Comprehensively enhance the core competitiveness of the information technology industry in an all-round way, and promote the technological innovation and application of artificial intelligence, advanced communications, integrated circuits, new displays, and advanced computing. Accelerate the industrialisation of biomedicine, bio-agriculture, bio-manufacturing, gene technology application services, etc. Expand the new energy industry. Promote the research and development and application of cutting-edge new materials. Promote the application and industrialisation of major equipment engineering, accelerate the research and development of large aircraft, aero-engines and airborne equipment, and promote the construction of satellite and application infrastructure…” 壮大战略性新兴产业。深入推进国家战略性新兴产业集群发展，建设国家级战略性新兴产业基地。全面提升信息技术产业核心竞争力，推动人工智能、先进通信、集成电路、新型显示、先进计算等技术创新和应用。加快生物医药、生物农业、生物制造、基因技术应用服务等产业化发展。发展壮大新能源产业。推进前沿新材料研发应用。促进重大装备工程应用和产业化发展，加快大飞机、航空发动机和机载设备等研发，推进卫星及应用基础设施建设。发展数字创意产业。在前沿科技和产业变革领域，组织实施未来产业孵化与加速计划，前瞻谋划未来产业。推动先进制造业集群发展，建设国家新型工业化产业示范基地，培育世界级先进制造业集群.
The technology bit also talks about data policy and talent policy, which I am not detailing. There’s not much new being said there. On the other hand, it’s worth noting that the paragraphs on upgrading traditional industries talk about digital and green upgrades, and include this line: “Optimise the planning and layout of important basic industries such as petrochemical, chemical, and iron and steel, and strictly control the construction of high-energy-consuming and high-emission projects.” 优化石化化工、钢铁等重要基础性产业规划布局，严格控制建设高耗能、高排放项目.
VII. Section 7 talks about the need to improve market-based allocation of factors, accelerate the establishment of a fair and unified market, and build a modern circulation system. The last two of these are interesting.
In terms of fairness, the document says: “Enterprises of all types of ownership will be treated equally in terms of access to factors of production, access licensing, operation, standard-setting, bidding and tendering, and government procurement. Establish fair, open and transparent rules for competition, establish a mechanism for implementing competition policies that covers all aspects of the competition process, improve the review mechanism for fair competition, and strengthen rigid constraints on fair competition review. Strengthen and improve anti-monopoly and anti-unfair competition law enforcement and improve laws and regulations. Improve the system for assessing market competition.” 完善公平竞争的市场秩序。在要素获取、准入许可、经营运行、标准制定、招投标、政府采购等方面，对各类所有制企业平等对待。建立公平开放透明的竞争规则，构建覆盖事前事中事后全环节的竞争政策实施机制，健全公平竞争审查机制，强化公平竞争审查刚性约束。加强和改进反垄断和反不正当竞争执法，完善法律法规。完善市场竞争状况评估制度.
The point about building a modern circulation system talks about establishing a 15-minute convenient living circle.
VIII. Section 8 talks about reform and opening up and boosting domestic demand, while Section IX talks about solidly promoting common prosperity.
“Adhere to the people-centred development philosophy, promote common prosperity through high-quality development, properly handle the relationship between efficiency and fairness, improve the income distribution pattern, build basic institutional arrangements for the coordination of initial distribution, secondary distribution and tertiary distribution, strengthen and make more precise adjustments to taxation, social security and transfer payments, expand the proportion of the middle-income group, increase the income of low-income groups, rationally adjust high income, ban illegal incomes, promote social fairness and justice, and promote people’s all-round development.” 坚持以人民为中心的发展思想，在高质量发展中促进共同富裕，正确处理效率和公平的关系，完善收入分配格局，构建初次分配、再分配、三次分配协调配套的基础性制度安排，加大税收、社保、转移支付等调节力度并提高精准性，扩大中等收入群体比重，增加低收入群体收入，合理调节高收入，取缔非法收入，促进社会公平正义，促进人的全面发展，增强内需发展后劲.
Under this, the document talks about boosting employment, increasing the proportion of labour remuneration in the initial distribution, gradually increasing the statutory retirement age, “establishing a mechanism for innovation factors such as knowledge, technology and data to participate in income distribution, strengthening distribution policies oriented towards increasing the value of knowledge, and giving play to the role of wage incentives and guarantees.” 构建知识、技术、数据等创新要素参与收益分配机制，强化以增加知识价值为导向的分配政策，发挥工资激励保障作用. It also talks about improving pay incentives for scientific and technological personnel in state-owned enterprises. 完善国有企业科技人才薪酬激励政策. Improve the system of stock issuance and information disclosure, and promote the standardised and healthy development of the capital market. Innovate more financial products that meet the needs of family wealth management, and increase residents' investment income.” 完善股票发行、信息披露等制度，推动资本市场规范健康发展。创新更多适应家庭财富管理需求的金融产品，增加居民投资收益.
“Increase the adjustment of the fiscal and taxation system to income distribution. We will improve the direct tax system, improve the comprehensive and graded individual income tax system, and strengthen tax regulation and oversight for high income earners. We will improve the division of financial powers and expenditure responsibilities between the central and local governments, and promote the equalisation of basic public services such as education, old-age care, medical care and housing security. Improve the transfer payment system, focusing on increasing the transfer payment to areas with relatively backward development level. Increase capital investment in social welfare and people's livelihood areas in an orderly manner, and optimise the structure of education expenditure.” 加大财税制度对收入分配的调节力度。健全直接税体系，完善综合与分类相结合的个人所得税制度，加强对高收入者的税收调节和监管。完善中央与地方财政事权和支出责任划分，推动教育、养老、医疗、住房保障等基本公共服务均等化。完善转移支付制度，重点加大对发展水平相对落后地区的转移支付力度。有序增加社会民生领域资金投入，优化教育支出结构。
X. Section 10 talks about strengthening food security (this includes land, research on seeds and grain production, purchase, storage, processing and marketing); energy security, and industrial and supply chain security. The last of these entails:
“consolidating and expanding cooperation with neighbouring countries on industrial and supply chains, and jointly maintaining the stable operation of international industrial and supply chains. Implementing the upgrading project of manufacturing supply chain and construct manufacturing supply chain ecosystem. Focusing on the key raw materials, technologies and products of key industries' industrial chains, and enhancing the flexibility and reliability of the supply chain.” 推进制造业补链强链。实施产业基础再造工程，健全产业基础支撑体系，加强产业技术标准体系建设。巩固拓展与周边国家产业链供应链合作，共同维护国际产业链供应链稳定运行。实施制造业供应链提升工程，构建制造业供应链生态体系。围绕重点行业产业链供应链关键原材料、技术、产品，增强供应链灵活性可靠性.
“Ensure the secure and stable operation of basic industries that have a bearing on the national economy and people's livelihood. Focus on ensuring the safe and stable operation of coal, electricity, oil and gas transportation, and strengthen the stable supply of key instruments and equipment, key basic software, large-scale industrial software, industrial application software, industrial control systems and important parts, and ensure the safe operation of core systems. Ensure the safety of the industrial chain of residents' basic necessities and ensure that people's basic lives are not greatly affected under extreme circumstances.” 保障事关国计民生的基础产业安全稳定运行。聚焦保障煤电油气运安全稳定运行，强化关键仪器设备、关键基础软件、大型工业软件、行业应用软件和工业控制系统、重要零部件的稳定供应，保证核心系统运行安全。保障居民基本生活必需品产业链安全，实现极端情况下群众基本生活不受大的影响.
Finally, there’s a long Ren Zhongping article praising China’s COVID containment policy. I am not doing a full breakdown, because a lot of it is a reiteration of past events and developments. Basically, to me, this reads like a eulogy to the policy.
“With the stability of prevention and control strategy and the flexibility of prevention and control measures, we effectively deal with the uncertainty of epidemic. In the past three years, we have fought hard, steadily and step by step. The virus has weakened, but we have strengthened. China’s epidemic prevention and control is today facing a new situation and new tasks.” This, the author says, has led to the optimisation measures. 大战大考炼真金。我们以防控战略的稳定性、防控措施的灵活性，有效应对疫情形势的不确定性。近三年鏖战，稳扎稳打、步步为营，病毒弱了、我们强了，疫情防控面临新形势新任务.
China’s fight against the pandemic has guaranteed the safety of the lives of hundreds of millions of people to the greatest extent, ensured working and living conditions and an environment for investment and development to the greatest extent and demonstrated to the greatest extent the superiority of China's socialist system. Facts have fully proved that our epidemic prevention and control policy is correct, scientific and effective, has been recognised by the people and can stand the test of history. 抗疫斗争，最大程度保障了亿万人民的生命安全，最大程度创造了生产生活条件和投资发展环境，最大程度彰显了我国社会主义制度的优越性。事实充分证明，我们的疫情防控政策是正确的、科学的、有效的，得到了人民认可，经得起历史检验。
Later the article specifically praises Xi Jinping for his “far-sighted assessments and scientific and decisive decision-making” with regard to pandemic control policies, which the author says “demonstrate the responsibility of the people’s leader.” 习近平总书记高瞻远瞩的判断、科学果断的决策，彰显着人民领袖的责任担当，为打赢疫情防控的人民战争、总体战、阻击战指明前进方向、提供重要遵循.
The article ends saying:
“Let us unite more closely around the Party Central Committee with comrade Xi Jinping at the core, deeply understand the decisive significance of the Two Establishments, strengthen the four consciousnesses and the four self-confidences, and achieve the two safeguard, put the safety of people's lives and health first, do a good job in epidemic prevention and control scientifically and precisely, do our best to eliminate the haze of COVID-19 epidemic, fully promote economic and social recovery and development, and create new achievements in the new journey of building a modern socialist country in an all respects.” 让我们更加紧密团结在以同志为核心的党中央周围，深刻领悟“两个确立”的决定性意义，增强“四个意识”、坚定“四个自信”、做到“两个维护”，把人民群众生命安全和身体健康放在第一位，科学精准做好疫情防控各项工作，全力扫除新冠疫情阴霾，全力促进经济社会恢复发展，在全面建设社会主义现代化国家的新征程上创造新的历史伟业——
Page 2: A report with data from the Ministry of Water Resources, showing that from January to November, the investment in water conservancy construction across the country was 1,008.5 billion yuan, an increase of 33% compared with last year.
Second, there is a report with data from PBoC, saying that RMB loans in China increased by 1.21 trillion yuan in November. From January to November, RMB loans increased by 19.91 trillion yuan, an increase of 1.09 trillion yuan over the same period of last year.
Page 3: A report (English report) on the meeting between Chinese and Malaysian foreign ministers. Xinhua says: Wang Yi “said that China and Malaysia are good friends and partners, noting that China stands ready to work with Malaysia's new government to carry forward their friendship and deepen cooperation. Wang said China is ready to take the opportunity of the 10th anniversary of the establishment of China-Malaysia comprehensive strategic partnership in 2023 and the 50th anniversary of the establishment of diplomatic relations between China and Malaysia in 2024 to make joint efforts towards the building of a China-Malaysia community with a shared future, push bilateral relations to a new level, and jointly safeguard regional peace, stability and prosperity.”
Malaysia’s Zambry Abdul Kadir said that “Malaysia's new government is willing to work with China to strengthen high-level exchanges and deepen cooperation in various fields.”
Other Stories:
A few stories that are not in PD, but are worth noting.
“Jake Sullivan, the White House national security adviser, on Monday said discussions have taken place with Japan and the Netherlands - both major suppliers of chip making equipment - on adopting similar measures. "I'm not going to get ahead of any announcements," he told reporters. "I will just say that we are very pleased with the candor, the substance and the intensity of the discussions." Sullivan's comments followed a report by Bloomberg News that Japan and the Netherlands have agreed in principle to join the U.S.-led technology export control, citing people familiar with the matter. Asked about the report, Japanese Trade Minister Yasutoshi Nishimura said co-operation in export control figured in a telephone conversation he had with U.S. Commerce Secretary Gina Raimondo, but declined to elaborate…A spokesperson for the Dutch foreign ministry declined to comment. Trade Minister Liesje Schreinemacher has said the Netherlands is in talks with the United States on restrictions beyond those currently in place.”
“The Biden administration plans to remove some Chinese entities from a red flag trade list, a U.S. official told Reuters on Wednesday amid closer cooperation with Beijing. The plan to remove them soon from the so-called "unverified" list is thanks to greater willingness from the Chinese government to permit U.S. site visits, the person said.”
