Understanding Stability & Progress - Qin Gang Resigns from NPC - Commentary on WTO Ministerial in UAE

Here are the key reports and articles that I found noteworthy from the People's Daily’s edition on Wednesday, February 28, 2024.

Page 1: The lead article today delves into what the Party thinks about when it makes the point that in economic work, one must adhere to seeking progress while maintaining stability, promote stability through progress, and establish first and then break. The article first talks about stability.

“Stability is crucial for the overall situation and is the foundation. For a massive economy like China, one year’s economic increment is equivalent to one year's economic output of a medium-sized country. Only by maintaining the economic operation in a reasonable range, consolidating and strengthening the economic recovery and fully guaranteeing employment and people's livelihood can we create a stable development environment for ‘progress’.” In other words, stability covers expectations, growth and employment. 稳是大局和基础。像我国这样大体量的经济体，一年的经济增量相当于一个中等国家一年的经济总量。保持经济运行在合理区间，巩固和增强经济回升向好态势，充分保障就业民生，才能为“进”创造稳定发展环境。稳大局、应变局、开新局。去年底举行的中央经济工作会议要求，“多出有利于稳预期、稳增长、稳就业的政策”.

Alas, there are no new policy hints on offer in the article. It’s basically a restatement of existing policies, arguing that these have promoted stability. One important bit in this is that when it comes to employment, basically what is highlighted are employment subsidies to companies. 

The second section discusses making progress. It says:

“To promote stability through progress means being proactive in transforming methods, adjusting structures, improving quality, and increasing efficiency. It also means taking strategic initiatives, enhancing development resilience, and creating good expectations and new impetus for the stable and healthy operation of the economy and society and the achievement of high-quality development.” “进”是方向和动力。以进促稳，就是要在转方式、调结构、提质量、增效益上积极进取，掌握战略主动、增强发展韧性，为经济社会平稳健康运行、实现高质量发展创造良好预期和新的动力.

So what constitutes progress? Not surprisingly, it is science and technology innovation (and the development of new productive forces), regional coordinated development, and high-level opening up. Below is a useful quote by Dong Yu, executive vice president of China Institute for Development Planning at Tsinghua University.

“Promoting stability through progress embodies a higher level of security and stability concept based on dynamic balance, that is, through more proactive policy actions, solving problems in progress through development.” “以进促稳，体现了一种基于动态平衡的、更高水平的安全观与稳定观，即通过更加积极主动的政策作为，用发展的办法解决前进中的问题。”清华大学中国发展规划研究院常务副院长董煜说.

Next, there’s a report on the NPCSC concluding its 8th session. Key outcomes from the meeting:

• Adoption of the revised Law on Guarding State Secrets

• Adoption of the draft agenda of the upcoming NPC session and the draft name list of the session's presidium and secretary-general

• Adoption of the name list of the members invited to sit in on the session as non-voting participants

• Adoption of the deputy qualification report and other personnel-related bills

Meanwhile, we now know that former foreign minister Qin Gang has not been dismissed or expelled from the NPC, but rather has resigned. Also, former defense minister Li Shangfu has been ousted from the CMC.

Zhao Leji’s comments are reported on Page 2. The only bit that I found interesting is this:

“...With a high sense of political responsibility and mission, meticulous preparation, and careful arrangements, we should fulfill our duties in accordance with the law and ensure that the second Session of the 14th NPC is conducted as a democratic, united, pragmatic, and progressive assembly. It is necessary to fully promote democracy, create an atmosphere of free expression and pragmatic discussions during the session, and support and encourage delegates to speak truthfully, reflect real situations, and propose practical solutions, truly conveying the voices and aspirations of the people. It is essential to do well in news and public opinion work, closely align with the theme of the session, and tell the story of Chinese democracy well. It is necessary to take the conduct of meetings seriously, persist in running meetings diligently, frugally, pragmatically and efficiently, and constantly improve the conduct of meetings.” 赵乐际强调，十四届全国人大二次会议召开在即，开好这次大会，对于动员广大人民群众把智慧和力量凝聚到党中央确定的战略部署上来，奋力完成今年经济社会发展目标任务，以优异成绩迎接新中国成立75周年，具有十分重要的意义。要以高度的政治责任感和使命感，精心准备，周密部署，依法履职尽责，把十四届全国人大二次会议开成民主、团结、求实、奋进的大会。要充分发扬民主，营造畅所欲言、求真务实的会议氛围，支持和鼓励代表讲实话、道实情、出实招，真正把人民群众呼声愿望反映上来。要做好新闻舆论工作，紧扣大会主题，讲好中国民主故事。要严肃会风会纪，坚持勤俭节约、务实高效办会，持之以恒改进会风.

Finally, on page 1, we have a report on the meeting of the Chairperson's Council of the CPPCC National Committee. Wang Huning spoke at the meeting. He said that:

“It is necessary to conduct in-depth consultations and discussions on comprehensively deepening reforms, organize CPPCC members to carry out solid research activities, and put forward precise and practical opinions and suggestions to better help promote Chinese-style modernization. It is necessary to organize CPPCC members to study General Secretary Xi Jinping’s important expositions on developing new productive forces, strengthen research on forward-looking and innovative issues, and contribute to promoting high-quality development. It is necessary to adhere to the principle that the CPPCC exists for the people, organize members to perform their duties and ‘serve the people’ activities, and guide CPPCC members to better perform their duties for the country and fulfill their responsibilities for the people.” 要围绕全面深化改革深入协商议政，组织政协委员扎实开展调研活动，研究提出针对性、操作性强的意见和建议，更好助力推进中国式现代化。要组织政协委员专题学习习近平总书记关于发展新质生产力的重要论述，加强对前瞻性、创新性问题的研究，为推动高质量发展献计出力。要坚持人民政协为人民，组织好委员履职“服务为民”活动，引导政协委员更好为国履职、为民尽责.

Page 3: There is a commentary discussing the WTO Ministerial Conference taking place in the UAE. It says that:

It adds: “At this session, China supports the restoration of the normal operation of the dispute settlement mechanism, supports the inclusion of the investment facilitation agreement into the WTO legal framework, and takes practical actions to promote the conference to achieve more practical results.” 本届会议上，中方支持恢复争端解决机制正常运转，支持将投资便利化协定纳入世贸组织法律框架，以实际行动推动会议取得更多务实成果.

“To promote WTO reform, we must adhere to the general direction of economic globalization, oppose unilateralism and protectionism, oppose politicization, weaponization and pan-securitisation of economic and trade issues, and promote the construction of an open world economy. Unilateralism and protectionism run counter to global sustainable development and are also the root causes of the current WTO crisis. The reform of WTO should put unilateralist and protectionist practices in an institutional cage. 推动世贸组织改革，必须坚持经济全球化大方向，反对单边主义、保护主义，反对将经贸问题政治化、武器化、泛安全化，推动建设开放型世界经济。单边主义、保护主义与全球可持续发展背道而驰，也是当前世贸组织危机的根源，世贸组织改革应该将单边主义和保护主义做法关进制度的笼子.

“To promote the reform of the WTO, we must maintain the core values and basic principles of the WTO such as openness, inclusiveness, and non-discrimination, and protect the development interests and policy space of developing countries. In recent years, in order to pursue their own selfish interests, some countries have violated WTO rules, implemented unilateral trade bullying, formulated discriminatory industrial policies, disrupted global industrial and supply chains, seriously affected the international trade order, and harmed the common interests of WTO members. China upholds the concept of a community with a shared future for mankind and has taken practical actions to support the integration of developing countries into the multilateral trading system. The recently held high-level forum of the 12th China Roundtable of the WTO shared the cases of Arab countries joining the WTO and discussed optimizing technical assistance and capacity building to help more regional countries join the WTO as soon as possible and benefit from it. China will continue to engage in South-South cooperation within the framework of the multilateral trading system, further solidify and improve the CRT, and enhance the openness, inclusiveness, universal benefits, and balance of the multilateral trading system.” 推动世贸组织改革，必须维护开放、包容、非歧视等世贸组织核心价值和基本原则，保障发展中国家发展利益和政策空间。近年来，个别国家为谋求一己私利，违背世贸组织规则，实施单边贸易霸凌，制定歧视性产业政策，扰乱全球产业链供应链，严重影响国际贸易秩序，损害世贸组织成员共同利益。中国秉持人类命运共同体理念，以实际行动支持发展中国家融入多边贸易体制。近日举行的世贸组织第十二届“中国项目”圆桌会高层论坛，通过分享阿拉伯国家加入世贸组织事例，探讨优化技术援助和能力建设，帮助更多地区国家尽快加入世贸组织并从中受益。中国将继续在多边贸易体制框架内开展南南合作，进一步做实做好“中国项目”，提升多边贸易体制的开放性、包容性、普惠性和平衡性.

And that’s all that’s relevant in the paper today.

Other Stories:

• SCMP reports on the recent South China Sea tensions: “China on Monday said it was “necessary” to set up a floating barrier at the disputed Scarborough Shoal in the South China Sea, where it has had frequent flare-ups with Philippine forces. Asked about new satellite images of the barrier blocking the entrance of the shoal’s lagoon, Chinese foreign ministry spokeswoman Mao Ning said the shoal, called Huangyan Island in Chinese, was the country’s ‘inherent territory’. ‘Recently, the Philippine side has taken a series of actions which violate China’s sovereignty,’ Mao said in Beijing. ‘China has to take the necessary measures to firmly safeguard our territorial sovereignty and maritime rights and interests’. In a statement on Sunday, the Philippine coastguard accused Chinese coastguard vessels of deploying a floating barrier at the mouth of the lagoon, and conducting ‘blocking manoeuvres’ about 1.3 nautical miles from the shoal last Tuesday during a patrol by a vessel from the Philippine Bureau of Fisheries and Aquatic Resources, which also transported fuel to Filipino fishermen. Philippine coastguard spokesman Jay Tarriela said Beijing installed barriers ‘every time’ a Philippine government vessel was in the vicinity of the Bajo de Masinloc, the Philippine name for the shoal. The barrier was removed a few hours after the Philippine vessel left the area, he said. Commercial satellite images taken on the day also showed the barrier across the shoal mouth, as well as “possible Chinese interception” of the Philippine vessel, according to a Reuters report on Monday. China’s coastguard had said the Philippine government vessel was ‘driven away’ after it had ‘illegally intruded into’ Chinese waters.”

• Caixin reports: The American Chamber of Commerce in South China on Tuesday published results of a survey showing that 40% of companies studied said they are not planning to expand in China over the next three years, a rise of 9% from a year ago and the highest on record. The survey collected responses from 183 companies polled between Oct. 9 and Dec. 31, 2023. Of these 49% were from the U.S. while 35% were based in China. The rest were from other regions including Europe. More than half the businesses surveyed were solely owned by foreign investors and 70% have operated in China for more than 10 years. In 2023, 66% of companies studied reinvested in China in 2023, a decrease of 14% compared with 2022, the report said. This marks a significant shift from the steadier rates of 78-80% seen between 2019 and 2022. American firms led the drop in reinvestment in 2023. China is ranked first priority in global investment plans by 39% of the companies surveyed, declining 1% from 2022 and continuing the downward trend of recent years, according to the latest Special Report of the State of Business in South China. The companies studied have set aside $10.95 billion from profits in China to reinvest over the next three to five years in further business expansion, a steep fall of 40.15% from 2022, the report said … Foreign enterprises are not in any hurry to leave China. In 2023, 62% of the companies studied chose not to shift investments out of China, with American businesses showing the strongest commitment to remain. This reflects the strong performance of foreign firms in China. According to the report, 88% of the companies have already made profits in China, with 46% reporting to have met their budget expectations. Some 90% of American companies have achieved profitability in China.”

• HKFP reports that Xia Baolong, who heads the Hong Kong and Macau Affairs Office, is in Hong Kong this week. He met with business representatives on Monday. The report says that “Betty Yuen, chairperson of the Hong Kong General Chamber of Commerce (HKGCC), addressed reporters after a meeting on Monday with Xia Baolong … ‘[Xia]… said Hong Kong’s One Country, Two Systems has been effective and that there was no need to change it,’ Yuen said, referring to the governance system that accords the city a degree of autonomy from mainland China. ‘Investment and assets in Hong Kong will be protected and [he] told us to rest assured to invest and to boost Hong Kong’s prosperity,’ Yuen said. She added that Beijing would roll out more measures to support Hong Kong…” SCMP reports that in the meeting with Xia “representatives of 15 business lobbies spoke at the meeting, according to the attendee. Seven were from local chambers, four from Southeast Asian ones, three from groups belonging to European countries and one from a body with a Middle Eastern country.” Also being discussed during this visit apparently is the national security legislation required under Article 23 of the Basic Law. This would be separate from the national security law that Beijing imposed in 2020.