Seeking Foreign Investment - Wang Yi on US' 'Evil Claws' in South China Sea - Warning Japan on NATO Expansion - July Data Shows Greater Weakness - NBS Suspends Youth Unemployment Data - Gwadar Attack
Hi folks,
I hope this finds you well. I am doing a brief edition today, looking at some specific reports in the paper from August 15, 2023, and some other news stories.
Pages 1 & 2: Across both, the key report, from my perspective, is about the press briefing after the issuance of the 24-point guideline on boosting foreign investment. This is increasingly becoming a challenge for Beijing, as the chart below from Bloomberg’s reporting shows.
In the past two days, this guideline has been the big story. You can read through Pekingnology’s translation of the document, if you haven’t already.
Reuters’ report on the document says:
“The State Council said in a document containing 24 guidelines that authorities should increase protection of the rights and interests of foreign investors, including strengthening enforcement of intellectual property rights. The document also announced guidelines to increase fiscal support and tax incentives for foreign-invested enterprises, such as temporarily exempting withholding income tax for foreign investors' reinvestment of their profits into China. The State Council said it would explore a ‘convenient and secure management mechanism’ for cross-border data flows. The proposal comes amid tensions between authorities and international enterprises, including global accounting firms, over data security.”
“At a press conference on Monday, Chen Chunjiang, assistant minister of commerce, said that the government was looking for a “new cooperation model in procurements”, and that Beijing would like to encourage and support foreigners who want to invest in “world-leading” Chinese innovation. Yao Jun, head of planning at the Ministry of Industry and Information Technology, said at the same press conference that the government would continue to push for FDI in areas including “advanced manufacturing” and “energy conservation and environmental protection”. Beijing hopes to encourage more FDI in central-western and northeastern parts of China, he said. The latest State Council document also said there would be a “fast track” for foreign investors who fulfil certain conditions on the transfer of cross-border data, without specifying further. “[There will be] efficiency in security reviews for cross-border data transfer and encouragement in the free and secured flow of data,” the document said.”
“The State Council plan published Sunday includes a government pledge to accelerate foreign projects related to the biopharmaceutical industry, as well as to increase the trial area for certain telecommunication services. Qualified foreign companies will also be encouraged to set up investment units and regional headquarters. The government will also make it more convenient for employees of foreign companies to apply for visas and residence permits, and it will increase fiscal and taxation support for those businesses, according to the statement.”
“These new policies “could go a long way to improving business confidence if they are implemented in timely, coordinated and consistent manner,” the European Union Chamber of Commerce said in a statement. “The publication of detailed implementation guidelines will be an extremely important part of this process.”
Many of the topics from the Sunday announcement — including preferential tax policies, data transfers and support for companies focused on research and development — “have been on our list” of areas needing policy improvement, said Michael Hart, president of AmCham China. “The next area to watch is the actual implementation of announced policies which is sometimes where the real challenges lie,” he added. The government will continue to reduce the number of sectors that ban investment from foreign firms, China’s Assistant Minister of Commerce Chen Chunjiang said at a press conference Monday afternoon to explain the new policy. Authorities will also relax restrictions on “strategic” investments into listed Chinese firms, Chen added.
In PD today, there’s a report on the press briefing held after the new guidelines were issued. It quotes Chen Chunjiang as saying that the guidelines are aimed to “more effectively boost the confidence of foreign investment and attract more high-quality foreign investment.” He says that China will:
Intensify comprehensive pilot and demonstration efforts to further open up the service sector
Encourage foreign-invested enterprises and their R&D centers to undertake major research projects
Establish a sound Qualified Foreign Limited Partner foreign exchange management facilitation system, and support them in conducting relevant investments with overseas-raised RMB
拓展对外开放广度和深度。比如，加大服务业扩大开放综合试点示范先行先试力度；鼓励外商投资企业及其设立的研发中心承担重大科研攻关项目；建立健全合格境外有限合伙人外汇管理便利化制度，支持以所募的境外人民币直接开展境内相关投资等。
Optimize entry and exit policy measures, provide convenience for the foreign executives, technical personnel, and their families of foreign-invested enterprises for entry, exit, and residence.
Carry out special inspections to ensure the fair participation of business entities in government procurement activities
Promote the disclosure of information about the whole process of standard formulation and revision, and support foreign-invested enterprises to participate in standard formulation on an equal footing according to law
Strengthen the mechanism for rapid coordinated protection mechanism for intellectual property rights, and expedite the processing of cases wherein the facts are clear and evidence is conclusive in accordance with the law.
提升投资经营便利化水平。比如，为外商投资企业的外籍高管、技术人员本人及家属提供入出境、停居留便利；开展保障经营主体公平参与政府采购活动专项检查；推进标准制定、修订全过程信息公开，支持外商投资企业依法平等参与标准制定工作；健全知识产权快速协同保护机制，对事实清楚、证据确凿的案件依法加快办理进度等.
Support all regions to implement supporting incentive measures for foreign-invested enterprises…
Research and innovate cooperative procurement methods, and support foreign-invested enterprises to innovate and develop world-leading products in China through measures such as first-time purchase orders.
Establish and improve the system of roundtable conferences with governments for foreign-invested enterprises
Do a good job in applying for certificates of origin under free trade agreements, and provide convenience for foreign-invested enterprises to enjoy tariff reduction and exemption policies.
加大外商投资引导力度。比如，支持各地区在法定权限范围内对符合鼓励外商投资产业目录规定的外商投资企业实施配套奖励措施；研究创新合作采购方式，通过首购订购等措施，支持外商投资企业在我国创新研发全球领先产品等。强化外商投资促进和服务保障工作。比如，建立健全外商投资企业圆桌会议制度；做好自由贸易协定原产地证书签证工作，为外商投资企业享受关税减免政策提供便利等.
In the report, Liu Lin from SAMR is quoted as emphasising the importance of “adhering to the equal treatment of domestic and foreign-funded enterprises, and actively creating a market environment for fair competition.” 坚持内外资企业一视同仁、平等对待，积极营造公平竞争的市场环境. The report adds:
“Strengthen the enforcement of IPR and the protection of trade secrets. In the first half of this year, 17,100 cases in the fields of trademarks and patents were investigated and dealt with, and the IPR of domestic and foreign-funded enterprises being equally protected according to law.” 加大知识产权执法和商业秘密保护力度。今年上半年，查处商标、专利等领域违法案件1.71万件，依法平等保护内外资企业知识产权.
In terms of standardisation work, the report informs:
At present, 62% of professional standardisation technical committees have members from foreign-funded enterprises 目前，62%的专业标准化技术委员会有外资企业委员.
At present, the conversion rate of international standards in China has exceeded 80%, and the consistency of key consumer goods standards with international standards has reached 95%. 提升国内国际标准一致性，中国国际标准转化率目前已经超过80%，重点消费品标准与国际一致性程度达95%。
“Fu Jinling, director of the Economic Construction Department of the Ministry of Finance, said that the Ministry of Finance attaches great importance to optimizing the foreign investment environment in the field of government procurement, strives to eliminate all kinds of unreasonable restrictions and barriers in government procurement, and ensures equal participation of domestic and foreign enterprises in government procurement activities in accordance with the law.” 对此，财政部经济建设司司长符金陵表示，财政部高度重视优化政府采购领域外商投资环境，努力消除政府采购中的各类不合理限制和壁垒，依法保障内外资企业平等参与政府采购活动.
“In the next step, the Ministry of Finance will continue to optimise the business environment of fair competition in government procurement, and better ensure that domestic and foreign-funded enterprises participate in government procurement activities on an equal footing. This mainly entails:
Actively promote the revision of Government Procurement Law and the coordination and unification of Government Procurement Law and law on tenders and bids, and strive to enhance the systematicness, integrity and coordination of government procurement legal system
Clarify the specific standards of ‘produce in China’ in the field of government procurement, and strive to ensure that products produced by domestic and foreign-funded enterprises in China participate in government procurement activities on an equal footing
Carry out special inspections to ensure that business entities participate in government procurement activities fairly, and correct and investigate violations of laws and regulations such as differential treatment or discriminatory treatment of foreign-invested enterprises according to law.”
下一步，财政部将持续优化公平竞争的政府采购营商环境，更好地保障内外资企业平等参与政府采购活动。主要是：积极推进政府采购法修订以及政府采购法、招标投标法协调统一，努力增强政府采购法律制度的系统性、整体性和协同性；明确政府采购领域“中国境内生产”的具体标准，着力保障内外资企业在中国境内生产的产品平等参与政府采购活动；开展专项检查，保障经营主体公平参与政府采购活动，依法纠正和查处对外商投资企业实行差别待遇或歧视待遇等违法违规行为。
The final section of the article discusses the importance of improving foreign investment promotion methods. Among other things, it says:
“The Ministry of Commerce will fully mobilize foreign embassies and consulates, domestic and foreign associations, industry organizations and foreign investment promotion institutions, and make good use of various economic and trade exhibitions, pilot free trade zones, national development zones and other platforms to provide support for attracting foreign investment and guide local governments to carry out foreign investment promotion in a sustained, strong and orderly manner.” 商务部将充分调动驻外使领馆、国内外商协会、行业组织和外商投资促进机构等各方面力量，用好各类经贸展会、自贸试验区、国家级开发区等载体平台，为各地招商引资提供支撑，引导地方持续有力有序开展外商投资促进工作.
“Provide guidance to local governments to actively explore and innovate boldly, carry out foreign investment promotion activities in a more targeted manner, such as attracting investment through industry chain collaboration and business-to-business interactions, combining investment attraction with efforts to ‘stabilizing the chain, strengthening the chain’ and ‘attracting talents, wisdom, and technology’ in order to attract a batch of high-quality foreign investments that address weaknesses and leverage strengths. Guide local governments to establish and improve the effectiveness evaluation system for foreign investment promotion, and pay more attention to the actual contribution of foreign investment to economic and social development.” 优化外商投资促进方式。指导地方积极探索、大胆创新，运用产业链招商、以商招商等多种方式更有针对性地开展外商投资促进活动，将招商引资与“稳链补链强链”相结合，与“招才引智引技”相结合，引进一批补短板、强优势的高质量外资。指导地方建立健全外商投资促进成效评价体系，更加注重引资对经济社会发展的实际贡献.
Finally, Yao Jun, head of the Planning Department of the Ministry of Industry and Information Technology, said that:
“At present, China's general manufacturing sector has been fully opened up, the negative list of manufacturing items in the Pilot Free Trade Zone has been completely cleared, and all restrictions on foreign investment in the auto industry have been lifted as of 2022. In the next step, the MIIT will guide foreign capital to invest in fields such as advanced manufacturing, energy conservation and environmental protection, and invest in the central, western and northeastern regions, further improve the quality of attracting foreign capital, optimize the layout of foreign capital, and do a good job in the use of foreign capital in the manufacturing industry.” 目前，中国一般制造业领域已实现全面开放，自贸试验区负面清单制造业条目全面清零，汽车行业自2022年起全部取消对外资准入的限制。下一步，工业和信息化部将引导外资投向先进制造、节能环保等领域，投向我国中西部和东北地区，进一步提升吸引外资质量，优化外资布局，做好制造业利用外资工作.
Page 3: There’s an article by Atsushi Koketsu from Yamaguchi University. He talks about Kishida attending the NATO summit, saying that “while strengthening the bilateral military alliance between Japan and the US, Japan is attempting to become a de-facto member of NATO and follow the US to build an ‘Asia-Pacific version of NATO’, which has aroused concerns from the international community.”不久前，日本首相再次出席北约峰会。日本在强化日美双边军事同盟的同时，企图成为北约事实上的一员，追随美国在亚洲打造“亚太版北约”，这引发了外界担心.
“In recent years, some people in Japan seem to want Japan to go back to the old path it was on before World War II. Using the so-called ‘China threat’ as an excuse, the Japanese government has continuously increased its defense expenditure, promoted the relaxation of arms export restrictions and sought to loosen military constraints. Since the overall escalation of the Ukrainian crisis, Japan's dependence on military alliances has been further strengthened. These acts are a betrayal of Japan's pacifist constitution and the peace-loving Japanese people, which will only arouse China and other Asian neighbours’ vigilance and distrust of Japan. What Japan needs to do now is not to strengthen its military alliances and build Japan into a military state, but to give priority to strengthening peaceful and friendly relations with neighbouring countries such as China. This is the most important security policy that aligns with Japan's interests.” 近年来，日本一些人似乎想让日本重走二战前的老路。日本政府以所谓“中国威胁”为借口，持续增加防卫费，推动放宽武器出口限制，谋求军事松绑。乌克兰危机全面升级以来，日本对军事同盟的依赖进一步加强。这些行为是对日本和平宪法的背叛，也是对爱好和平的日本人民的背叛，只会引起中国和其他亚洲邻国对日本的警惕和不信任。日本现在需要做的不是加强军事同盟，把日本打造成为一个军事国家，而是优先同中国等邻国加强和平友好关系。这才是符合日本利益的最重要的安保政策.
“NATO is the world’s largest military bloc and is increasingly becoming a tool for the US to maintain global hegemony. NATO tries to maintain the so-called ‘rules-based international order’ dominated by the United States. Japan should not adopt an attitude that is biased toward the United States, but should flexibly respond to the multi-polarization of the world, establish an equal relationship of trust with all countries, and contribute to world peace. Under US leadership, NATO's intention to move east into the Asia-Pacific is obvious. In this process, Japan is being asked to play a greater role, but Japan’s militarization will only bring greater danger to Asia and the world. The tragedy of the Ukraine crisis, which was triggered by NATO's eastward expansion and has been prolonged owing to NATO pouring fuel on fire, should not be repeated in the Asia-Pacific. Just as NATO's goal in Europe is to deal with Russia, its goal in Asia is to contain China. NATO extending its black hand to the Asia-Pacific region will surely pose a serious threat to regional security and stability. French President Emmanuel Macron has made clear his opposition to setting up a NATO liaison office in Japan, stressing that NATO should not extend beyond the North Atlantic. I believe that the countries concerned should eventually reduce the danger of war and safeguard world peace by abolishing military blocs like NATO.” 北约是世界上最大的军事集团，正日益成为美国维护全球霸权的工具。北约试图维护美国主导的所谓“基于规则的国际秩序”。日本不应采取偏向美国的态度，而应灵活应对世界多极化，与所有国家建立平等的信任关系，为世界和平作出贡献。在美国主导下，北约东进亚太的意图显而易见。在这个过程中，日本被要求发挥更大作用，但日本的军事化动向只会给亚洲乃至世界带来更大危险。乌克兰危机因北约东扩而起，因北约拱火浇油而延宕，这一悲剧不应在亚太重演。正如北约在欧洲的目标是对付俄罗斯，北约在亚洲的目标是打压中国。北约将其黑手伸向亚太必将对地区安全稳定构成严重威胁。法国总统马克龙明确反对在日本设立北约联络处，强调北约的范围不应扩展到北大西洋以外地区。我认为，有关国家最终应通过废除北约这样的军事集团来减少战争危险，维护世界和平.
“Japan should promote Japan-China friendship and play a role in facilitating the easing of relations between China and the US. Building an ‘Asia-Pacific version of NATO’ is not what most Japanese people want. Japan should clearly oppose the creation of an ‘Asia-Pacific version of NATO’, stop the wrong policy of linking up with NATO, and contribute to peace and stability in Asia.” 日本应促进日中友好，并在推动中美关系缓和方面发挥作用。打造“亚太版北约”并非多数日本国民所愿。日本应明确反对打造“亚太版北约”，停止勾连北约的错误政策，为维护亚洲地区的和平稳定作出贡献.
Next, there’s a report with comments from MoFA on the attack on a Chinese convoy in Gwadar, Pakistan. Reports inform that this was a seven-vehicle convoy carrying 23 Chinese engineers. After the attack, the Baloch Liberation Army (BLA) has also issued an ultimatum to Chinese citizens, demanding that they leave the resource-rich Balochistan province in 90 days. In response to this, the Chinese foreign ministry said:
“On August 13, a convoy from a Chinese project at Gwadar Port was hit by roadside bombs and gunshots, and no Chinese citizens were killed or injured. China strongly condemns this terrorist act and has asked the Pakistani authorities to bring the perpetrators to justice and take actions to keep Chinese nationals safe. The Chinese embassy and consulate in Pakistan immediately activated the emergency response mechanism and reminded Chinese nationals, companies and project construction teams in Pakistan to stay alert, upgrade security measures, closely follow the security situation on the ground, guard against security risks, and keep themselves safe. China will continue to work with Pakistan to jointly guard against and counter the threats of terrorism and effectively protect the safety of Chinese personnel, institutions and projects in Pakistan. No attempt to sabotage the friendship between China and Pakistan and the China-Pakistan Economic Corridor (CPEC) will succeed.”
Here is a brief video shared by Global Times of the attack:
Also on the page is a report on the Second Meeting of the Steering Commission for Economic and Trade Cooperation between China and Angola. China’s Commerce Minister Wang Wentao attended this meeting. Xinhua says that the meeting ended with both sides “jointly announcing the conclusion of negotiations on the China-Angola Bilateral Investment Agreement and exchanged views on pragmatic cooperation in various areas, including trade, investment, infrastructure, industrial development, and human resources. Wang said that under the strategic leadership of the leaders of both countries, the economic and trade cooperation between China and Angola has yielded fruitful results. China is prepared to collaborate in strategizing for the upcoming phase of bilateral economic and trade cooperation, enhancing the scope of trade and investment cooperation, strengthening the achievements in infrastructure partnership, and broadening engagement across sectors such as energy, mining, manufacturing, agriculture, and fisheries.”
Next, there’s a commentary trying to instil confidence in China’s economic trajectory. It argues the following points:
Despite the complex and severe external environment, China's economic growth rate is significantly higher when compared with the world's major developed economies. This demonstrates its resilience. In the first half of this year, China's GDP grew by 5.5% year-on-year, significantly faster than the 3% economic growth rate from 2022, and faster than the 4.5% average growth rate in the three years of the pandemic. The latest World Economic Outlook Report released by the International Monetary Fund last month predicted that China's economy would grow by 5.2% this year, ranking among the leading economies. A series of targeted measures recently introduced by China, such as effectively optimising the development environment of private enterprises, have helped to consolidate the momentum of economic growth and further enhanced the confidence of the international community in the high-quality economic development of China. 在复杂严峻的外部环境下，中国经济增速明显快于世界主要发达经济体，彰显可贵的韧性。今年上半年，中国国内生产总值同比增长5.5%，明显快于去年全年3%的经济增速，也快于疫情3年年均4.5%的增速。国际货币基金组织上月发布最新《世界经济展望报告》，预计今年中国经济将增长5.2%，在主要经济体中排名前列。中国近期出台的一系列针对性举措，如切实优化民营企业发展环境等措施，有助于巩固经济增长势头，进一步增强了国际社会对中国经济高质量发展的信心.
Amid the general trend of sluggishness in global cross-border investment flows, foreign-funded institutions have increased their investments in China and actively invested in high-end industries and emerging sectors, demonstrating the strong and lasting attraction of the Chinese market. According to estimates from China's State Administration of Foreign Exchange, the average return on foreign investment in China over the past five years has been 9.1%, significantly higher than the approximately 3% in the US and Europe. In H1, many developed countries have increased their investments in China, with French, British and German investments in China increasing by 173.3%, 135.3% and 14.2%, respectively, and the number of newly established foreign-funded enterprises in China increasing by 35.7%. According to the 2023 mid-year report released by the American Chamber of Commerce in South China this month, nearly 60% of American-funded enterprises continue to remain optimistic about the Chinese market, and about 30% of the interviewed enterprises plan to expand their investment in China. The huge market opportunities, continuously optimized business environment and mature and complete supply chain ecosystem are highly favoured by foreign investors, and China will continue to remain a hot spot for foreign investment and business development. 在全球跨国投资普遍低迷的形势下，外资机构加码投资中国，对高端产业、新兴领域进行积极布局，彰显中国市场强大持久的吸引力。根据中国国家外汇管理局测算，近5年，中国的外商投资收益率是9.1%，远高于美欧3%左右的数据。今年上半年，不少发达国家对中国投资保持增长，法国、英国、德国对华投资分别增长173.3%、135.3%、14.2%，在华新设外资企业数量增长35.7%。华南美国商会本月发布的2023年年中报告显示，近六成美资企业持续看好中国市场，约三成受访企业计划扩大在华投资。中国经济企稳回升带来的巨大市场机遇、持续优化的营商环境以及成熟完整的供应链体系备受外资青睐，中国将持续成为外商投资兴业的热土.
Although the price level in China is temporarily at a low stage, looking at indicators such as economic growth and currency supply, China's economy does not meet the criteria for deflation. With China's economy recovering positively, market demand gradually expanding, and economic cycles becoming more fluid, the supply-demand relationship will gradually improve, and it is expected that the overall price level for the year will experience mild and moderate fluctuations within a reasonable range. Faced with difficulties and challenges, China's economy continues to recover, showing an overall improvement, and remains a significant engine for global economic growth. 以外界关注的价格总水平为例，尽管中国价格水平阶段性处于低位，但从经济增长、货币供应等相关指标看，中国经济都不符合通货紧缩的标准。随着中国经济恢复向好、市场需求逐步扩大、经济循环畅通，供求关系将逐步改善，全年物价总水平预计将在合理区间小幅温和波动。面对困难和挑战，中国经济持续恢复、总体回升向好，依然是世界经济增长的重要引擎.
Some Western politicians and media, wearing tinted glasses, have deliberately magnified the momentary/temporary/periodic problems in China’s post-epidemic economic recovery, hyping up arguments of China's economic deflation, frustrated recovery and weak policies. These cliches run counter to the facts and are at odds with the observations of many international institutions and people. As pointed out by some media, although western media are keen to exaggerate China's slowing economic growth, many international institutions still maintain an optimistic view on the Chinese market. China will continue to unswervingly promote high-quality development, and the trend of China's economic recovery will not be disturbed by the noise. 一些西方政客和媒体戴着有色眼镜，故意放大中国在疫后经济复苏过程中存在的阶段性问题，极力炒作中国经济通缩、复苏受挫、政策乏力等论调。这些陈词滥调有悖事实，也与许多国际机构和国际人士的观察不符。正如有媒体所指出的，虽然西方媒体热衷于夸大中国经济增长放缓的说法，但许多国际机构仍然对中国市场保持乐观的看法。中国将继续坚定不移推动高质量发展，中国经济回升向好的趋势不会被杂音所干扰。
Now, one could take any of this stuff seriously if Beijing was being transparent with data. But that unfortunately is not part of the system’s DNA. Earlier today, the National Bureau of Statistics’ Fu Linghui told the press that “starting from this August, the release of urban unemployment rates for youth and other age groups across the country will be suspended.” For context, youth unemployment hit a record 21.3% in June; there has been a big push by the government to try and improve this number, but it just isn’t working.
NYT’s report on this development says: “The decision to scrub a widely-watched report could exacerbate the concerns expressed by investors and executives who say ever tightening government control of information is making it harder to do business in China.”
CNBC and Reuters, meanwhile, has the other data reported by NBS on Tuesday:
Retail sales rose by 2.5% in July from a year ago, below expectations for a 4.5% increase, according to analysts polled by Reuters.
Industrial production rose by 3.7% in July from a year ago, below the 4.4% increase analysts had expected.
Fixed asset investment rose by 3.4% for the first seven months of the year from a year ago, below the 3.8% forecast by the Reuters poll.
The urban unemployment rate ticked up to 5.3% in July from 5.2% in June.
Investment in the property sector tumbled 8.5% year-on-year in January-July, after shrinking 7.9% in January-June, extending its fall for the 17th consecutive month.
Retail sales of consumer goods went up 2.5% year on year in July to nearly 3.68 trillion yuan (about $512.22 billion). This was down from a 3.1% increase in June and missed analysts' forecasts of 4.5% growth despite the summer travel season. This was also the slowest growth since a decline in December.
Two analytical points from the Reuters report:
“All the main activity indicators undershot consensus expectations in July, with most either stagnant or barely expanding in month on month terms,” said Julian Evans-Pritchard, economist at Capital Economics. “And with financial troubles at developers such as Country Garden likely to weigh on the housing market in the near-term, there is a real risk of the economy slipping into a recession unless policy support is ramped up soon.”
Nomura analysts were equally downbeat on China's economic outlook. “We believe the Chinese economy is faced with an imminent downward spiral with the worst yet to come, and the rate cut this morning will be of limited help,” they said.
Another Reuters report informs that “China's central bank unexpectedly cut key policy rates for the second time in three months on Tuesday, in a fresh sign that the authorities are ramping up monetary easing efforts to boost a sputtering economic recovery. Analysts said the move opened the door to a potential cut in China's lending benchmark loan prime rate (LPR) next week…The People's Bank of China (PBOC) said it lowered the rate on 401 billion yuan ($55.25 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions by 15 basis points to 2.50% from 2.65% previously. The cash injection was to counteract factors including tax payments in order to "keep banking system liquidity reasonably ample", the PBOC said in an online statement.”
Finally, there’s a report informing that Minister for Foreign Affairs of Denmark Lars Lokke Rasmussen will pay an official visit to China from Aug. 16 to 19.
Page 17: There’s a report based on the recent Pew Survey on global perceptions of the US. The report only highlights negative findings around US interference, failure to fulfil international obligations, consideration of others’ interests and impact on global stability. I would rather that one reads the full survey, available here.
— Wang Yi’s East Asian Diplomacy
I am covering below readouts from Wang Yi’s Visit to Malaysia, Singapore and Cambodia. These are not in PD today.
In Malaysia, he met with Minister of Foreign Affairs Zambry Abd Kadir. The Chinese readout says:
“China is ready to work with Malaysia to follow the important common understandings between the leaders of the two countries, take stock of the successful experience, deepen mutually beneficial cooperation, and deepen and flesh out the building of a China-Malaysia community with a shared future. China supports Malaysia in pursuing a development path that suits its own national conditions and in playing a greater role in regional and international affairs. The two sides should strengthen communication and coordination, enhance strategic mutual trust, support each other in safeguarding core interests and legitimate rights and interests, and jointly defend the basic norms governing international relations. Wang Yi said that as two flagship projects of the Belt and Road Initiative (BRI), the construction of the East Coast Rail Link and Two Countries, Twin Parks has been progressing smoothly. China and Malaysia have conducted sound cooperation in automobile manufacturing, digital economy, and new energy. China supports and encourages more Chinese enterprises to invest and do business in Malaysia, so as to foster more new growth drivers of cooperation. China is ready to deepen cooperation between the two countries in such areas as agricultural technology and food security, and import more quality agricultural products from Malaysia.”
Zambry said: “Malaysia will continue to support and actively participate in BRI cooperation, and make all-out efforts to advance key cooperation projects. Malaysia expects to strengthen ties at all levels and in various fields, and expand mutual benefit and win-win results. Malaysia highly appreciates and supports a series of important global initiatives put forward by President Xi Jinping, stands for harmonious coexistence among different civilizations, and expects to work with China to strengthen people-to-people and cultural exchanges and mutual learning between civilizations.”
“The two sides also had an in-depth exchange of views on regional and international issues of mutual interest and concern, and reached broad common understandings. The two sides agreed to strengthen communication and coordination, maintain ASEAN centrality, and promote regional peace, stability and development.”
Wang also met with Prime Minister Dato' Seri Anwar Bin Ibrahim. The Chinese readout says that Wang called Anwar “an old friend of the Chinese people”, while Anwar said that “China is a reliable and good friend of Malaysia and that Malaysia and China enjoy a special and friendly relationship with robust bilateral cooperation.”
“China is ready to work with Malaysia to maintain the sound and strong momentum of development in bilateral relations, bring more benefits to the two peoples, and make new contributions to regional development and revitalization. Wang Yi said that China and Malaysia are both emerging economies and developing countries with similar development philosophies and extensive common interests. Noting that the high-quality Belt and Road cooperation has yielded fruitful results, and the construction of the East Coast Rail Link and Two Countries, Twin Parks has achieved good economic and social effects, Wang Yi said the two countries enjoy broad prospects for practical cooperation. China is ready to share with Malaysia the opportunities brought by the super-large market, expand cooperation areas, and achieve mutual benefit, win-win results, and common development.”
Next, during his visit to Singapore, Wang met with Foreign Minister Dr. Vivian Balakrishnan and Deputy Prime Minister Lawrence Wong. The Chinese readout on the meeting between Wang and Balakrishnan says:
“The two sides will make sound preparations for the meeting of the bilateral cooperation mechanism at the vice-premier level between China and Singapore, which is to be held this year, plan the next stage of cooperation in a coordinated manner, and expand new areas of cooperation. The Singaporean side highly appreciates the recent measures taken by China to facilitate people-to-people exchanges, and the two sides will speed up the resumption of direct flights between the two countries across the board, and carry out closer exchanges and cooperation in economy, trade, people-to-people and cultural exchanges, and tourism. The two sides also had an exchange of views on a wide range of regional and international issues. They will strengthen communication and coordination, jointly promote the positive achievements of the leaders' meetings on East Asia cooperation, and jointly safeguard regional peace, stability, development and prosperity.”
The readout on the meeting between Wang and Wong says:
“Wang Yi expressed his hope that Lawrence Wong, the leader of Singapore's fourth-generation leadership team, will make new contributions to bilateral relations. Noting that the current world is full of chaos, Wang Yi stressed the only right way is to jointly uphold the international system with the United Nations at its core and the international order underpinned by international law. Major countries, in particular, should take the lead in the course. China-Singapore relations have provided positive energy to regional peace, stability and development. China is willing to strengthen coordination on multilateral affairs with Singapore and demonstrate the rich dimensions of the new positioning of China-Singapore relationship. China is committed to realizing the great rejuvenation of the Chinese nation by advancing Chinese modernization on all fronts. China's commitment to high-quality development, high-standard opening-up and the creation of a new development pattern will bring new opportunities to countries in the region, including Singapore. China will work with ASEAN countries to build a peaceful, safe and secure, prosperous, beautiful and amicable home for China and ASEAN and push forward the sustained and steady development of China-ASEAN comprehensive strategic partnership. Wang Yi expressed his expectation that Singapore will continue to play an active role in building a China-ASEAN community with a shared future.”
It adds:
“Lawrence Wong noted that the elder generation of Singaporean and Chinese leaders have laid a solid foundation for sound relations and cooperation in a wide range of areas between the two countries, and the upgrade of the positioning of Singapore-China relations has injected fresh impetus into Singapore-China cooperation. At present, Singapore-China relations enjoy a strong momentum of development and the two sides have yielded fruitful results in Belt and Road cooperation. Singapore will actively participate in China's modernization process. Lawrence Wong said that he is looking forward to visiting China and jointly chairing the meeting of the Singapore-China bilateral cooperation mechanism. Singapore appreciates China's important role in regional sustainable development and stability. Singapore welcomes and supports China's efforts to join the Digital Economy Partnership Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Singapore opposes the law of the jungle and power politics, and will jointly maintain regional peace and stability, uphold the World Trade Organization rules, and safeguard a fair, open, and inclusive cooperation framework.”
Separately, there was a statement issued by the Chinese foreign ministry on the South China Sea issue. It says:
“Member of the Political Bureau of the CPC Central Committee and Foreign Minister Wang Yi exchanged views with political dignitaries of Singapore and Malaysia on the current situation in the South China Sea and staked out China's position during his visit to the two countries. Wang Yi said, thanks to the joint efforts of China and ASEAN, the situation in the South China Sea has been generally stable over the years, providing a favorable environment for respective development. However, the United States and some other forces wish nothing but chaos in the South China Sea and keep stirring up trouble in this sea area. Recently, the United States fanned up the flames over the Ren'ai Jiao dispute, provoked discord and incited confrontation between China and the Philippines, and disrupted the peace and tranquility of the South China Sea, to serve the United States' own geopolitical strategy. China hopes that regional countries will maintain necessary vigilance against the evil claws behind the scenes and hold the initiative of maintaining peace and stability in the South China Sea in their own hands. China has repeatedly expressed its willingness to properly handle existing differences with the Philippines through bilateral dialogue. China hopes that the Philippines will abide by the common understandings reached in the past, cherish the mutual trust accumulated through the improvement of bilateral relations, and work with China in the same direction to seek effective ways to manage the maritime situation as soon as possible. Wang Yi stressed that China is ready to work with ASEAN countries to accelerate the negotiation on a Code of Conduct in the South China Sea, and strive to reach a regional norm that is effective, substantive and in line with international law, including the United Nations Convention on the Law of the Sea. China believes that China and ASEAN countries are capable and wise enough to maintain peace and stability in the South China Sea and build their common home.” — (Comment: Of course, it was the US that somehow forced Chinese vessels to harass others and fire water cannons.)
Finally, in Cambodia, Wang met with King Norodom Sihamoni, Prime Minister Hun Sen, Foreign Minister Sok Chenda Sophea and Deputy Prime Minister Sun Chanthol. The readout has Hun Sen saying:
“The results of the general election have shown the right choice made by the Cambodian people and their trust in and support for the Cambodian People's Party (CPP). Cambodia will promote the transition to a new generation leadership in an orderly manner, and maintain the country's stable and continuous policies and principles. Cambodia views China as a true strategic safeguard and strong strategic supporter, and will not waver in its resolve to consolidate and deepen Cambodia-China solidarity and friendship. The new Cambodian government will continue to strengthen strategic mutual trust with China and carry forward traditional friendship. Cambodia thanks China for its valuable support for the country's development. Cambodia has benefited immensely from Belt and Road cooperation between Cambodia and China, and looks forward to jointly implementing the bilateral ‘diamond hexagon’ cooperation consensus and promoting the ‘Industrial Development Corridor’ and the ‘Fish and Rice Corridor’ with China, so as to enhance Cambodia's capacity for independent development at a faster pace.”
Wang said that the recent elections in Cambodia were “fair, transparent and in accordance with the law, and the results of the general election reflected the shared aspirations of the people and the irresistible trend of the times.” He added that “Under the leadership of Prime Minister Hun Sen, Cambodia has gone from war to peace, from turmoil to stability, from poverty to prosperity, and from the region to the world, as its development achievements are obvious to all. The noises made by some external forces are pale in the face of the people's choice.” He further added that “the ironclad friendship between China and Cambodia is ever-lasting and time-tested”.