Wang Yi at Munich Security Conference - China-US Ties - Zhao Peng's Dual Circulation Deep Dive
Here are the stories and pieces that I found noteworthy from the Monday, February 20, 2023, edition of the People’s Daily.
Page 1: It’s quite an uninteresting front page today. The page has two articles discussing rural development. One of these is a long feature article talking about the role that “first secretaries” have played in villages. First secretaries are specific individuals selected and sent to villages in the context of the poverty alleviation campaign. The piece talks about their impact now in promoting rural revitalization and industrial development in rural areas. There’s really no summarising the article. It’s a collection of stories demonstrating the positive impact of first secretaries.
The other top article discusses winter and annual planting of crops based on the outlines of Document No. 1. Again, there’s nothing particularly interesting there
Third, there’s a report informing that MIIT has awarded 110 cities as meeting the standards of gigabit cities, accounting for about one-third of all prefecture-level cities. Xinhua informs that “a gigabit city must meet the following criteria: gigabit network coverage and 5G network access rates in key places have reached 80 percent, 5G users account for 25 percent of the population, and 5G and Gigabit Network application cases are no less than five.” The report adds that:
The average number of 5G base stations per 10,000 people in Gigabit cities is 22.2, which is higher than the national average of 15.7 per 10,000 people.
As of 2022, there were over 90 million Gigabit users and 561 million 5G users in China. The average proportion of 5G users in gigabit cities reached 38.9%, which was higher than the national average.
Page 2: Foreign affairs related reports are on the page. I am, however, looking at all key developments related to Wang Yi’s visit to Europe so far, rather than simply cover what’s on the page.
Let’s first look at Wang Yi’s speech at the Munich Security Conference. I watched this live, and I was struck by the lack of questioning of China on its position with regard to the Russian invasion of Ukraine. Wang Yi, it seems, can get away with statements blaming NATO, the US and even European countries without any pushback.
Let’s begin with the key takeaways from his speech:
“Although the pandemic is under control, the world is not safer. Mutual trust between major countries is increasingly lacking, geopolitical rifts are widening, unilateralism is rampant, the Cold War mentality is making a comeback, and new types of security threats, such as energy, food, climate, biology, and artificial intelligence are emerging one after another.” 3年后的今天，虽然疫情得到了控制，但世界并没有更加安全。大国互信日益缺失，地缘裂痕不断扩大，单边主义大行其道，冷战思维卷土重来，能源、粮食、气候、生物、人工智能等新型安全威胁接踵而至.
For a safer world, we must uphold the respect for the sovereignty and territorial integrity of all countries. Power politics and hegemonic behaviour are a recipe for global instability and cause the greatest damage to global peace. Wanton interference in the internal affairs of other countries, no matter what reasons are fabricated, is a disregard and betrayal of the basic norms of international relations. Violating the one-China principle on the Taiwan issue and creating ‘one China, one Taiwan’ or ‘two Chinas’, however framed, is a serious violation of China’s territorial integrity and a real threat to peace and stability across the Taiwan Strait. The principle of sovereignty is the cornerstone of the contemporary international order. All countries should earnestly abide by this principle. Words should be consistent with deeds. This principle cannot be applied selectively, let alone one engages in double standards. China will resolutely curb separatist interference and safeguard sovereignty and territorial integrity. 为了世界更安全，我们都要坚持尊重各国主权和领土完整。强权政治、霸权行径扰乱世界安宁，已成为国际和平面临的最大破坏性因素。肆意干涉别国内部事务，无论编造什么理由，都是对国际关系基本准则的无视和背叛。在台湾问题上违背一个中国原则，制造“一中一台”、“两个中国”，无论做出什么包装，都是对中国领土完整的严重侵犯，也是对台海和平稳定的现实威胁。主权原则是当代国际秩序的基石，各国都应切实遵守，言行一致，不能选择性适用，更不能搞双重标准。中国将坚定遏止分裂干涉行径，捍卫主权和领土完整.
Wang promised to issue a paper outlining China’s position on the political solution to the Ukraine crisis. He added that China “adopts a responsible attitude towards international disputes and plays a constructive role based on the merits of the matter itself.” While on this point, let me add Wang’s response to a question on the Ukraine situation.
“Wang Yi expressed that the Ukraine crisis is not what we want to see. Like all other parties, China is concerned about the possibility of the conflict being escalated and protracted. China is not a party to the Ukraine Crisis, but we have not sat idly by or added fuel to the fire, and we firmly oppose any move to exploit the crisis. Everything China has done is aimed at facilitating peace through dialogue. China will be firmly standing on the side of dialogue and peace. As a matter of fact, since the second day of the conflict's breakout, President Xi Jinping had initiated to seek a political settlement of the dispute through dialogue. And as we have seen, Russia and Ukraine did hold quite a number of rounds of negotiations and made important progress. Actually the framework for a peace deal had been already put on the table. But regrettably the peace talk stopped and all is back to square one. Nobody knows what’s behind it. Some people do not want peace talks to succeed or fighting to stop. They don’t care about the life and death of Ukrainians or the harm done to Europe, but have larger strategic calculations in mind.”
He also urged thinking about “What kind of architecture is needed for peace and stability to endure in Europe? What kind of role does Europe need to play to realize its strategic autonomy?”
He also offered a peek into what the position paper will say:
“The document will reiterate President Xi Jinping's important propositions, including that the sovereignty and territorial integrity of all countries should be respected, the purposes and principles of the UN Charter should be upheld, the legitimate security concerns of all countries should be taken seriously, and all efforts conducive to a peaceful resolution of the crisis should be supported. It will be reiterated that a nuclear war must never be fought and can never be won. We also call on all efforts to ensure the safety of civil nuclear facilities and stand against attacks on nuclear power plants, and will advocate joint efforts of opposition against the use of biochemical weapons.” — Quick take: I don’t see anything particularly new being offered by Beijing here.
He then talked about adhering to the “purposes and principles of the UN Charter.” “Provoking ideological confrontation and weaving exclusive circles undermines international solidarity and hinders international cooperation. Exaggerating security threats and deliberately creating tension has weakened strategic mutual trust and increased the risk of miscalculation.” 挑起意识形态对立，编织排他性小圈子，破坏了国际团结，阻碍了国际合作。夸大安全威胁，蓄意制造紧张，削弱了战略互信，增加了误判风险.
The fourth point he made was the need to “speed up the implementation of the UN's 2030 sustainable development goals, effectively protect the legitimate development rights of all countries in the world, especially developing countries…” He added that “the world should not go down the wrong path of protectionism and decoupling. We must resolutely resist attempts to politicise, weaponise and ideologise trade and scientific cooperation. Only when people of all countries live a good life can security be firm and lasting.” 世界更不应走上保护主义、脱钩断链的歧途。必须坚决抵制将贸易科技合作政治化、武器化、意识形态化的图谋。各国人民都过上好日子，安全才可能牢固和持久。
Towards the end, he said that “peaceful development” was a “strategic choice made by China.” “We are fully aware that in order to develop, we require a peaceful and tranquil international environment, peaceful coexistence with other countries and win-win cooperation with the world. We hold high the banner of peace, development, cooperation and mutual benefit, and are committed to deepening and expanding global partnership featuring equality, openness and cooperation.” 我们深知，要发展，就需要和平安宁的国际环境，就必须与各国和平共处，与世界合作共赢。我们始终高举和平、发展、合作、共赢旗帜，致力于深化拓展平等、开放、合作的全球伙伴关系. — (Interesting framing given what’s still happening on the borders with India or in the waters with the Philippines Coast Guard.)
Wang then promised that China would publish a Concept Paper on the Global Security Initiative. For folks who are interested, let me share my paper on GSI.
Wang ended with: “China and Europe are two major forces, two major markets, and two major civilisations in the process of multi-polarisation. The choices we make are of great importance to the direction of the world. If we choose dialogue and cooperation, there will be no confrontation between camps; if we choose peace and stability, there will be no new cold war; if we choose openness and win-win results, there will be hope for global development and prosperity. This is our common responsibility, and it is the answer sheet we should submit to history and mankind.” 中欧作为多极化进程的两大力量，两大市场，两大文明，我们作出的选择对世界的走向举足轻重。如果我们选择对话与合作，阵营对立就不会形成；如果我们选择和平与稳定，新的冷战就打不起来；如果我们选择开放与共赢，全球的发展繁荣就有了希望。这是我们的共同责任，是我们对历史，对人类应当提交的答卷.
During his engagement at the MSC, Wang also talked about China-US ties. On the balloon incident, he said: “Unfortunately, the U.S. ignored the basic facts and brazenly sent a fighter jet to shoot down the non-threatening airship with a missile. Such an unthinkable and hysterical action is, without doubt, excessive use of force, and clearly violates common practice and relevant international law.”
On broader ties: “The underlying reason why the unexpected incident has caused such a stir in bilateral relations is the United States' wrong perception and strategic misjudgment of China. Wang said China's policy toward the U.S., based on the clear and transparent principles of mutual respect, peaceful coexistence and win-win cooperation, encourages exploring the right way for two major countries with different social systems, histories and cultures to get along. On the contrary, the U.S. sees China as the gravest geopolitical challenge and strategic competitor in its China policy, and it is using all means possible to block and suppress China with such an erroneous view of China, Wang noted. He said that China has never been afraid of competition despite all the U.S. talking about competing with China, but the competition should be fair and rules-based. The Chinese diplomat denounced the United States' CHIPS and Science Act as unilateral and self-serving, saying that the act uses state power to suppress Chinese companies, violates the rules of the World Trade Organization and seriously disrupts the stability of the global industrial and supply chains.”
While in Europe, Wang also met with Secretary of State Blinken. The Chinese readout of the meeting called this meeting “an informal contact.” On the balloon incident, there was sabre-rattling and a warning: “If the US side continues to fuss over, dramatise and escalate the unintended and isolated incident, it should not expect the Chinese side to flinch. The US side should be prepared to bear all consequences arising from an escalation.”
On Ukraine and China-Russia ties, he said: “The China-Russia comprehensive strategic partnership of coordination is built on the basis of non-alliance, non-confrontation and non-targeting of third countries, which is within the sovereign right of any two independent states. We do not accept the US’s finger-pointing or even coercion targeting China-Russia relations. The US, as a major country, has every reason to work for a political settlement of the crisis instead of fanning the flames or profiting from it.”
Finally, on Taiwan, he called on the US to “honour its political commitments” and said that “one must firmly oppose ‘Taiwan independence’ and uphold the one-China principle.”
The US readout said that the balloon incident was an “unacceptable violation of U.S. sovereignty and international law by the PRC high-altitude surveillance balloon in U.S. territorial airspace, underscoring that this irresponsible act must never again occur.” Blinken “warned about the implications and consequences if China provides material support to Russia or assistance with systemic sanctions evasion.” He also “reaffirmed there had been no change to the longstanding U.S. one China policy.” He added that the US “will compete and will unapologetically stand up for our values and interests, but that we do not want conflict with the PRC and are not looking for a new Cold War.”
Basically, this seems like quite a difficult conversation that hasn’t moved the needle towards stabilisation. But, it’s worthwhile that both sides are engaging. Also, there’s some new friction on the horizon. Blinken told CBS News over the weekend that Chinese enterprises had been providing “non-lethal” support for Russia with regard to its operations in Ukraine. Now, he said that the concern that they have now is that China is “considering providing lethal support to Russia in its efforts in Ukraine.” This would entail “weapons and ammunition.”
Anyway, let’s turn to other meetings that Wang had.
First, the meeting with Ukrainian Foreign Minister Dmytro Kuleba. The readout says that Wang thanked him for the “smooth evacuation of overseas Chinese” and “consistent adherence to the one-China principle.” He added that “China is not willing to see a protracted and expanded Ukraine crisis and stands ready to work with the international community to prevent the situation from worsening and keep fighting for peace”
“Kuleba noted that Ukraine and China have been in communication over the past year. No country wants to realise peace as soon as possible than Ukraine. The Ukrainian side values China's international status and influence, and its position on political solutions to the crisis, said Kuleba, adding that he hopes China can continue to play a constructive role.” 王毅表示，中国和乌克兰是战略伙伴，两国人民有着长久友好交往。我们再次感谢乌方在紧急状况下协助中方顺利开展撤侨行动。赞赏乌方始终坚持一个中国原则。希望两国关系继续稳定发展。在乌克兰问题上，中方始终站在和平一边、站在对话一边，始终坚持劝和促谈。我们不愿看到乌克兰危机长期化、扩大化，愿同国际社会一道，避免形势进一步恶化，持之以恒地争取和平。库列巴表示，一年来，乌中一直保持着沟通。没有任何国家比乌克兰更希望尽快实现和平，乌方重视中国的国际地位和重要影响，重视中方关于政治解决危机的立场，期待中方继续发挥建设性作用.
Second, Xinhua’s report on the meeting with Britain’s James Cleverly said that “There are no geopolitical conflicts between China and Britain, and the two economies complement each other with great potential to exploit, Wang told Cleverly on the sidelines of the ongoing Munich Security Conference. Both countries are permanent members of the UN Security Council, shouldering the common responsibility of maintaining world peace and stability, Wang said. The two sides should remove all kinds of obstructions, stick to the right direction and promote the healthy development of bilateral relations, said Wang…Wang urged the British side to view China's development objectively and fairly.”
Third, the report on the meeting with EU’s Josep Borrell says that:
“Wang…said that China and the EU are partners, not rivals, and their consensus far outweighs their differences…Both sides should remain committed to the partnership, respect each other's core interests, cherish the fruits of cooperation, and usher in an even better next two decades, he noted. China has successfully pulled through a pandemic and is ready to fully restart exchanges with Europe and the rest of the world, Wang said. He suggested that the two sides may actively prepare for a new China-EU leaders' meeting, make full use of high-level dialogue mechanisms in various fields, and bring bilateral exchanges back to pre-epidemic levels as soon as possible. The essence of China-EU economic and trade relations is complementary and mutually beneficial. Both sides should maintain openness and cooperation, resist decoupling, and work together to maintain the stability of the global production and supply chain, Wang said. Wang expressed the hope that the EU and its members abide by the one-China principle and maintain the political foundation of China-EU relations. Borrell said that the European side has always been promoting EU-China relations in a mature and candid manner, stressing that the EU firmly upholds the one-China policy, recognizes the government of the People's Republic of China as the sole legal government representing the whole of China, supports China's efforts to defend national sovereignty and territorial integrity, and will translate the principle into the political relations between the EU and China…The EU side is willing to work with China to prepare for the next meeting between EU and Chinese leadership for in-depth exchanges of views on issues of common interest, said Borrell.”
Here’s Borrell’s summary of the chat on Twitter:
Fourth, the Xinhua report on the meeting with Japanese Foreign Minister Yoshimasa Hayashi says that Wang said he hopes the Japanese side will act on statements that “the two countries are partners and do not pose a threat to each other, and that Japan is committed to developing constructive relations with China.”
“This year marks the 45th anniversary of the signing of the China-Japan Treaty of Peace and Friendship, Wang noted, adding that the Japanese side should take this opportunity to sum up experience and lessons, remove internal and external disturbance, and work with China in the same direction to ensure steady progress of China-Japan relations on the right track. Unilateralism and decoupling serve no one's interests, he said, stressing that the Japanese side should clearly understand the situation and make an independent choice.” The Xinhua report also discusses the discharge of Fukushima wastewater and does a terrible job of summarising what Hayashi said.
Here are the key points from the Japanese readout:
“While touching upon many challenges and concerns facing Japan-China relations, Minister Hayashi again expressed serious concerns regarding the East China Sea including the situation surrounding the Senkaku Islands, as well as China’s increasingly active military activities near Japan including its coordination with Russia, and clearly conveyed, once again, Japan’s position regarding the specific balloon-shaped flying objects that have been detected in Japan’s territorial airspace in the past. In addition, Minister Hayashi stated the importance of peace and stability across the Taiwan Strait. Minister Hayashi also referred to the potential of cooperation in the economic area over which the leaders of the two countries shared their views at the meeting in November 2022 and the importance of fostering an appropriate environment and revitalizing people-to-people exchanges, including the youth. Director Wang echoed Minister Hayashi’s views. Minister Hayashi once again called on China to make positive contributions to the international community under established international rules and, in particular, urged China to respond to the situation in Ukraine as a responsible major power. In addition, Minister Hayashi strongly condemned North Korea's launch of an ICBM-class ballistic missile on 18th and confirmed continued close cooperation on the response to North Korea with Director Wang, including the abductions issue. Minister Hayashi and Director Wang welcomed that Japan and China have agreed to hold the Japan-China Security Dialogue, the Japan-China Consultations between Diplomatic Authorities, and the Japan-China Economic Partnership Consultation next week, and confirmed that they will continue close communication at all levels, including at the leaders’ and foreign ministers’ levels.”
Wang also met with leaders from Ireland, Belgium, Hungary’s Viktor Orbán, and Austria. But the last one that I want to highlight is the meeting with Dutch Deputy Prime Minister and Minister of Foreign Affairs Wopke Hoekstra, particularly given the semiconductor controls agreement between Japan, the US and the Netherlands.
Wang said that “openness and pragmatism are the essential aspects of China-Netherlands relations. While some countries are pursuing unilateralism and protectionism and desiring decoupling and severing supply chains, China hopes that the Netherlands will uphold the principle of independence and its tradition of open cooperation, remove distractions, maintain the sound momentum of bilateral cooperation, and play a positive role in ensuring the stability of the global industrial and supply chains and promoting global economic recovery, he said. China is promoting high-level opening up, which will open new prospects and opportunities for its cooperation with the Netherlands, Wang added. Noting that the Netherlands is a founding and core member of the European Union, the senior Chinese diplomat said that the Netherlands is a gateway to China-Europe cooperation and China appreciates that the Netherlands regards China as an important partner of Europe. China and Europe are partners, not rivals, he said, adding that China stands ready to enhance exchanges and understanding and deepen mutual trust with Europe.”
Page 3: There’s an article by Zhao Peng from the Office of the Central Financial and Economic Affairs Commission, discussing what is needed to build the new development pattern or dual circulation. This is a fascinating article and I highly recommend reading through in detail.
First, Zhao writes that “to build the new development pattern, we need to create an open domestic and international dual circulation, not a single, closed domestic circulation.”
“The positive and negative experiences of modern and contemporary world history have repeatedly demonstrated that closure leads to backwardness, while openness brings prosperity. All countries that have successfully modernised have achieved sustained economic growth and increased per capita income levels by giving full play to their comparative advantages and actively participating in the international circulation. China’s own development experience shows that active participation in the international circulation was the decisive factor in ensuring the miracle of long-term and rapid economic development since the reform and opening up. This is the fundamental basis for us to firmly participate in and continuously improve engagement with the international circulation.” 世界近现代史正反两方面的经验反复说明，封闭导致落后，开放带来繁荣. 成功实现现代化的国家，无一不是通过发挥比较优势、积极参与国际循环来实现经济持续增长和人均收入水平提升。从我国自身发展经验看，改革开放以来之所以能取得经济长期快速发展的奇迹，积极参与国际大循环是一个决定性的因素，这是我们必须坚定参与并不断提升国际循环的根本依据.
In the next paragraph, Zhao doubles down on the idea. He writes that China’s economy is “deeply integrated into the world economy.” “The emphasis on the great domestic circulation as the mainstay does not imply a rejection of the international circulation or weaken it, or a call to operate in a closed environment. Rather, it means to leverage the economic advantages of a major country, integrate and interact with the international circulation at a higher level, enhance the interaction between domestic and international markets and resources, and provide material support for building a modern socialist country in an all-round way.” 当前，我国经济已经深度融入世界经济，同全球很多国家有着紧密的产业和市场关联，内外需市场本身就是相互依存、相互促进的。强调以国内大循环为主体，绝不是不要国际循环或弱化国际循环，关起门来封闭运行，而是要发挥大国经济优势，使国内大循环和国际循环在更高层次上实现结合和互动，增强国内国际两个市场两种资源的联动效应，为全面建设社会主义现代化国家提供物质支撑.
He adds:
“Since the 2008 global financial crisis, there has been a resurgence of the trend of anti-globalisation in the world. Unilateralism and protectionism have been on the rise, and economic globalisation has encountered adverse trends. In recent years, especially under the influence of the pandemic and geopolitical factors, global tensions have intensified, and the world has entered a new period of turbulence and change. However, it must be noted that these changes have not altered the basic logic that international division of labour and trade are conducive to the economic development of various countries. Economic globalisation is still the general direction of the development of productive forces in the modern world. The potential of global trade and division of labour is far from exhausted, and there is still broad room for all countries to achieve common development through international division of labour and trade. China cannot develop in isolation from the world, and the world cannot develop in isolation from China. Some countries are seeking to undermine the existing international economic order for their own selfish interests. They are attempting to use their strong position to decouple China from the global market and industrial system and build a ‘globalisation without China’. Such a move goes against the direction of historical progress and the objective laws of economic development and is impossible to achieve. In the face of a complex international environment, we must ‘not be afraid of floating clouds that obscure our vision 不畏浮云遮望眼 (an interesting phrase that refers to maintaining foresight and not being bogged down by temporary elements that obscure one’s view), recognize the overall trend, strengthen our confidence, remove distractions, stay on the right path, adhere to a high standard of opening-up, and continue to improve the quality and level of international circulation.” 2008年国际金融危机以来，世界范围内逆全球化思潮抬头，单边主义、保护主义明显上升，经济全球化遭遇逆流，特别是近几年在世纪疫情和地缘政治等因素影响下，全球性问题加剧，世界进入新的动荡变革期。但必须看到，这些变化并没有改变国际分工和贸易有利于各国经济发展的基本逻辑，经济全球化仍是现代世界生产力发展的大方向。全球贸易和分工的潜力远远没有耗尽，各国通过国际分工和贸易实现共同发展的空间仍十分广阔。中国的发展离不开世界，世界的发展也离不开中国。有的国家从一己私利出发，破坏既有的国际经济秩序，企图利用其强势地位，搞脱钩断链、小院高墙，试图把中国从全球市场和产业体系中切割出去，塑造“没有中国的全球化”。这种做法违背了历史进步的方向和经济发展的客观规律，是不可能实现的。面对纷繁复杂的国际环境，我们必须“不畏浮云遮望眼”，认清大势，坚定信心，排除干扰，坚守正道，坚持高水平对外开放，不断提升国际循环质量和水平.
The next paragraph says that faced with “disruptions to the international circulation, we have promoted the formation of a grand and smooth domestic economic circulation and strengthened the dominant role of the domestic economic circulation.” “On the one hand, this will help stabilise the domestic economic fundamentals, enhance the resilience of economic development, and upgrade the level of economic development with the times. On the other hand, it will better promote and activate the international circulation, provide more market opportunities for countries, make China a powerful gravitational field to attract high-quality global factor resources, improve the level of China's industrial technology development while meeting domestic demand, and form new advantages in participating in international economic cooperation and competition. Building a new development pattern does not mean a decline in the status of opening up to the outside world, but a higher level of opening up. We must grasp the dialectical relationship between domestic and international circulations, and jointly promote the expansion of domestic demand, supply-side structural reform and high-level opening up. Looking forward to the future, the scale of China's foreign trade import and export, utilisation of foreign capital and foreign investment will continue to expand, and its position in the international economy will continue to improve.” 在新发展格局中，国内大循环是基础和主体，参与国际循环则是经济全球化和国际产业分工格局下的必然要求。在国际循环受到干扰的情况下，我们推动形成宏大顺畅的国内经济循环，强化国内大循环的主体地位，一方面有利于稳定国内经济基本盘，增强经济发展韧性，与时俱进提升我国经济发展水平，另一方面能更好带动和激活国际循环，为各国提供更多市场机会，使我国成为吸引全球优质要素资源的强大引力场，在满足国内需求的同时提升我国产业技术发展水平，形成参与国际经济合作和竞争新优势，使国内循环和国际循环相互促进、相得益彰。构建新发展格局绝不意味着对外开放地位的下降，而是意味着更高水平的对外开放。我们必须把握好国内国际两个循环的辩证关系，协同推进扩大内需、供给侧结构性改革和高水平对外开放。展望未来，我国外贸进口和出口、利用外资、对外投资的规模将会持续扩大，在国际经济中的地位也会继续提升.
The second section of the article says that building a new development pattern calls for greater work on coordinating openness and security.
“On the new journey of comprehensively building a modern socialist country, we will inevitably encounter various external interference and obstacles, and will encounter the test of high winds, high waves and even turbulent storms. Therefore, the way in which we participate in the international circulation must be adjusted accordingly. Building a new development pattern is a major strategic plan put forward by the CPC Central Committee in view of the changes in China's development environment conditions, accurately recognising changes, scientifically adapting to changes, and actively seeking changes, with an eye on the overall situation and the long-term.” He adds that, therefore, “we must coordinate development and security, take the initiative to plan and act positively, grasp the strategic initiative in opening up, shape a positive and controllable active international circulation, so as to avoid falling into a passive international circulation that relies solely on external demand, excessively relies on external technology and resources, and lacks security-related risk prevention and control mechanisms.” 随着国际环境变化和我国经济不断发展壮大，我国在全球经济体系中的角色正在发生深刻变化。在全面建设社会主义现代化国家的新征程上，不可避免要遇到来自外部的各种干扰和阻碍，会遭遇风高浪急甚至惊涛骇浪的考验，参与国际循环的方式必然要进行相应调整。构建新发展格局，就是党中央针对我国发展环境条件变化，准确识变、科学应变、主动求变，着眼全局和长远提出的重大战略部署。面对新的充满挑战和不确定性的发展环境，我们必须统筹发展和安全，主动谋划，积极作为，在开放中把握战略主动，塑造积极可控的主动型国际循环，避免陷入单纯依靠外需拉动、过度依赖外部技术和资源、安全风险防控机制缺失的被动型国际循环.
Zhao adds that “markets are a scarce resource” and China has a “huge” domestic market, which bestows a “unique condition and advantage for China to actively shape the international circulation under the new historical conditions.” Apart from the market size, he points to China’s large and diversified manufacturing system, strong supply capacity, vibrant industrial ecosystem, and relatively stable macroeconomic environment as strengths. He says that this provides the foundation for Chinese enterprises to engage in foreign trade and for foreign enterprises to invest in China. “We should give full play to our comparative advantages, constantly consolidate and enhance our position in the global division of labour system, enhance our ability to resist various risks and challenges, and actively shape a high-level active international circulation.” 我们要发挥好自身比较优势，不断巩固提升我国在全球分工体系中的地位，提升抵御各种风险挑战的能力，积极塑造高水平的主动型国际循环.
He then writes that “With a strong domestic demand market, self-reliance in science and technology, complete and sound industries, and strong guarantee of resource elements, we can resist the impact of various extreme situations, have more confidence in expanding opening up and participating in international cooperation and competition, and have more ability to curb various protectionist and unilateralist behaviours, thereby better promoting international circulation.” 有了内需市场强劲、科技自立自强、产业完备健全、资源要素保障有力的国内大循环，我们就能够抵御各类极端情况冲击，扩大对外开放、参与国际合作和竞争就更有底气，也更有能力抑制各种保护主义、单边主义行为，能够更好地促进国际循环.
He adds that “smooth international circulation will bring more abundant high-quality factor resources, more diversified and stable market demand for domestic circulation, promote the improvement of the market mechanism, and facilitate the development and growth of a modern domestic economic system.” 畅通的国际循环会给国内大循环带来更加丰富的高质量要素资源、更加多元稳定的市场需求，促进市场机制的完善，有利于国内现代化经济体系发育成长.
Zhao then calls for the need to “adhere to the correct direction of economic globalisation, constantly expand our circle of friends, work with all peaceful and progressive forces to promote the construction of an open world economy, and maintain a pluralistic and stable international economic structure and economic and trade relations. Actively participate in the reform and construction of the global governance system, adhere to true multilateralism, actively participate in the formulation and maintenance of various international economic and trade rules, oppose the establishment of camps and exclusive circles targeting specific countries, and promote multilateral mechanisms such as the World Trade Organization and APEC to play a better role. Promote high-quality BRI development, consolidate and strengthen economic and trade relations with developing countries and neighbouring countries, and promote common prosperity and development. Promote the diversification and stability of overseas markets and supply chain systems, and improve the resilience and stability of international circulation. Strengthen the construction of an international circulation support system in the fields of standards, law and logistics, and promote the internationalisation of RMB in an orderly manner.” 我们要坚持经济全球化正确方向，不断扩大朋友圈，同一切和平进步力量一道推动建设开放型世界经济，维护多元稳定的国际经济格局和经贸关系。积极参与全球治理体系改革和建设，坚持真正的多边主义，积极参与制定和维护各类国际经贸规则，反对搞针对特定国家的阵营化和排他性小圈子，推动世界贸易组织、亚太经合组织等多边机制更好发挥作用。推动共建“一带一路”高质量发展，巩固加强与发展中国家和周边国家的经贸关系，推动共同繁荣和发展。促进海外市场和供应链体系多元化、稳健化，提高国际循环的韧性和稳定性。加强标准、法律、物流等领域国际循环支撑体系建设，有序推进人民币国际化。
“We should firmly safeguard our legitimate rights and interests in foreign trade and economic cooperation, oppose all forms of protectionism, unilateralism and bullying, actively use internationally accepted economic and trade rules and dispute settlement mechanisms, and safeguard the legitimate rights and interests of Chinese business entities, including foreign-funded enterprises in China, through legal and economic means. It is necessary to focus on overall and dynamic security, comprehensively improve the ability to safeguard national security under the conditions of opening up, improve internationally-accepted institutional arrangements, such as security reviews and anti-monopoly investigations, set a scientific level of opening up that is according to our security protection capabilities, promote various opening measures in a steady and orderly manner, enhance the stability and security of the international circulation, and effectively safeguard national sovereignty, security and development interests.” 我们要在对外经贸合作中坚定维护自身正当权益，反对各种形式的保护主义、单边主义和霸凌行径，积极运用国际通行经贸规则和争端解决机制，以法律和经济手段维护包括在华外资企业在内的中国经营主体的合法权益。要着眼总体安全、动态安全，全面提高开放条件下维护国家安全的能力，健全安全审查、反垄断调查等国际通行的制度性安排，科学设定适应安全防护能力的开放水平，稳妥有序推进各项开放措施，提升国际循环稳定性安全性，有效维护国家主权、安全和发展利益.
The final section of the article focuses on standard setting. Zhao writes that it is important to “expand the global network of high-standard free trade zones, actively promote the accession to high-standard economic and trade agreements, such as the Comprehensive and Progressive Trans-Pacific Partnership Agreement and the Digital Economy Partnership Agreement, and take the initiative to deepen the reform of relevant domestic fields in the context of relevant rules, regulations, and standards. Promote the optimisation and upgrading of goods trade, innovate the development mechanism of service trade, and vigorously develop digital trade. Strengthen the construction of brand, quality and channels of export products, make greater efforts to explore the international market, stabilise the scale of foreign trade and optimise the trade structure.” 扩大面向全球的高标准自由贸易区网络，积极推动加入《全面与进步跨太平洋伙伴关系协定》（CPTPP）和《数字经济伙伴关系协定》（DEPA）等高标准经贸协议，主动对照相关规则、规制、管理、标准，深化国内相关领域改革。推动货物贸易优化升级，创新服务贸易发展机制，大力发展数字贸易。加强出口产品品牌、质量、渠道等建设，更大力度开拓国际市场，稳定对外贸易规模，优化贸易结构.
Build a market-oriented, law-based and world-class business environment, do more to attract and make good use of foreign investment, appropriately reduce the negative list for foreign investment, open up the service sector, ensure the national treatment of foreign-invested enterprises, promote fair competition, and protect the rights and interests of foreign investors and their operations in accordance with the law, etc.
He adds: “Do a good job in the service of foreign-funded enterprises, actively respond to the concerns of foreign-funded enterprises, solve their various practical problems, provide maximum convenience for foreign businessmen to engage in trade and investment negotiations in China, and take effective measures to stabilise and retain enterprises under the pressure of relocate.” 有针对性地做好外资企业服务工作，积极回应外资企业关切，解决各类实际问题，为外商来华从事贸易投资洽谈提供最大程度的便利，采取有效措施稳定和留住有外迁压力的企业. — (This is a fairly candid acknowledgement that we usually do not get from Chinese media and officials.). Zhao also calls for paying “more attention to attracting small and medium-sized foreign enterprises to invest in China.”
The final point he makes is that China should “optimise the layout of regional opening, implement the promotion strategy of pilot FTZs, and give play to the role of international circulation in promoting the balanced and sustainable development of domestic regional economy.” 我们要优化区域开放布局，实施好自由贸易试验区提升战略，发挥国际循环对国内区域经济均衡可持续发展的促进作用.
Page 8: There’s an article informing that the CBIRC and PBOC have issued draft administrative measures related to the capital of commercial banks. China Daily has a detailed English report. It says:
“The CBIRC said revisions were made to the current administrative measures, which were rolled out in 2012, to further improve commercial bank capital regulations, promote banks to enhance their risk management capabilities, and improve the quality and efficiency of banks to serve the real economy. Banks with a large asset size or relatively larger cross-border business are classified as Tier 1, and the capital regulatory measures for them will be in line with international rules. Tier 1 banks are required to disclose a complete set of reports, in order to enhance risk information transparency and market discipline. Banks with relatively smaller asset and cross-border business sizes are classified as Tier 2. They are subject to relatively simplified capital regulatory measures and disclosure requirements, according to the CBIRC. Banks with assets of less than 10 billion yuan ($1.46 billion) each are classified as Tier 3. The CBIRC said it will further simplify capital measurement for Tier 3 banks and guide them to focus on serving the county economy and small businesses. Once implemented, the revised administrative measures will help improve the risk management level of banks in China, maintain the stability of the banking system, and better prevent financial risks, said Dong Ximiao, chief researcher at Merchants Union Consumer Finance Co. The new regulations will put differentiated supervision on bank capital into practice, lower compliance costs for small and medium-sized banks, and improve banks' ability to serve the real economy, especially by reducing the capital occupation of local government bonds and high-quality enterprises. The new regulations will also help China's banking sector to align with international rules such as the Basel III Accord, and promote the continuous expansion and deepening of the financial industry opening-up in China, Dong said.”
Page 17: The lead story on the international page is around the criticism of the US government for its response to the train derailment in Ohio.