Xi Congratulates Marcos - On Economy: Think Long-Term, Persistence is Victory & Xi Knows Best - Dynamic Clearing is Effective, Lying Flat is a 'Helpless Choice' - Emphasising the 'Two Establishments'
Here are the stories and pieces that I found noteworthy in the Friday, May 13, 2022, edition of the People’s Daily.
Page 1: Let’s begin with the Xi Jinping-related stories on the page. First, Xi exchanged congratulatory messages wits Slovenian counterpart Borut Pahor on the 30th anniversary of the establishment of diplomatic relations between the two countries. Xinhua reports:
“Xi stressed that he attaches great importance to the development of China-Slovenia relations, saying that he is ready to work with Pahor to take the 30th anniversary of diplomatic ties as a new starting point, seize the historic opportunity of jointly building the Belt and Road, strengthen the alignment of development strategies of the two sides, and deepen practical cooperation, so as to inject new impetus into the development of bilateral relations for the benefits of the two countries and their people.”
Xinhua has Pahor saying that “as a member of the European Union, Slovenia actively supports enhancing Europe-China relations and is committed to delivering the fruits of cooperation to both sides and the international community, said the president.”
Second, there is a report about Xi’s message to Ferdinand Romualdez Marcos on his election as president of the Republic of the Philippines. Xinhua reports:
“China and the Philippines are neighbors facing each other across the sea and partners through thick and thin, Xi said. In recent years, with the joint efforts of both sides, the bilateral relations have been consolidated and enhanced, bringing benefits to the people of both countries and contributing to regional peace and stability, Xi added. Xi stressed that both China and the Philippines are at a critical stage of development and their relations face important opportunities and enjoy broad prospects. Noting that he attaches great importance to the development of the bilateral ties, Xi said he is ready to establish a good working relationship with Marcos to uphold good-neighborliness and joint development, and further advance the bilateral comprehensive strategic cooperative relationship to benefit the two countries and their people.”
Third, a report about Xi’s CYL speech being published as a booklet. Xinhua has also put out the official English translation of the speech, if you are interested.’ There’s also a commentary on the page drawing from the speech. It reiterates that the youth must take the great rejuvenation of the Chinese nation as their own responsibility. It calls on the CYL members to:
“be models with lofty ideals and firm convictions, study hard and be determined to innovate, dare to struggle and be good at fighting, work hard and give selflessly, respect morality and be strict with discipline, and strive to grow into good young people in the new era who have ideals, dare to take responsibility, have the ability to endure hardships and struggle, and stir up the surging spring tide of national rejuvenation with the energy and creativity of youth.” 新时代的广大共青团员，要做理想远大、信念坚定的模范，做刻苦学习、锐意创新的模范，做敢于斗争、善于斗争的模范，做艰苦奋斗、无私奉献的模范，做崇德向善、严守纪律的模范，努力成长为有理想、敢担当、能吃苦、肯奋斗的新时代好青年，用青春的能动力和创造力激荡起民族复兴的澎湃春潮。
With the Xi stuff out of the way, let’s look at the other lead story on the page. This one is a feature report that basically makes the point that things aren’t really that bad when it comes to the Chinese economy.
Along with that, my TLDR for this is that the message to everyone is: Think Long-Term, This is a Stress Test, We’ve had Worse in the Past, Persistence is Victory, There is still a period of Strategic Opportunities & Xi Knows Best.
It informs that owing to the pandemic and the Russia-Ukraine conflict, the World Bank has lowered its forecast of global economic growth in 2022 by 0.9 percentage points to 3.2%. And then we get data about foreign investment in China. “In the first four months of this year, FDI into China increased by 20.5% year-on-year, and foreign-funded enterprises are full of confidence about the growth and long-term stability of the Chinese market…Under the general environment of weak global economic recovery, China’s economy as a whole has achieved a smooth start (to the year). China’s economic growth rate in the first quarter was higher than the average growth rate in the world, and it remains the main stabiliser and source of energy for global economic growth,” said Guo Liyan from the Chinese Academy of Macroeconomic Research. 世界银行将2022年全球经济增长预测值下调0.9个百分点，降至3.2%...今年前4月，我国实际使用外资同比增长20.5%，外资企业对中国市场的成长性、长期稳定性充满信心. “在全球经济复苏乏力的大环境下，我国经济总体实现平稳开局。中国一季度经济增速高于世界平均增速，仍是世界经济增长的主要稳定器和动力源。”中国宏观经济研究院综合形势研究室主任郭丽岩表示。
The report further says that despite the triple pressures facing the economy, first quarter GDP growth was 4.8%, which was still 0.8 percentage points higher than that in the fourth quarter of the previous year; urban unemployment rate was 5.5%, basically the same as the same period last year; the consumer price index rose 1.1% year-on-year, This is in stark contrast to the continuous record high prices in economies such as the United States and Europe.
Meanwhile, advancements have continued. Some data points included in the piece are:
the Hualong-1 demonstration project was completed and put into operation; the first self-developed commercial maglev 3.0 train has been commissioned; the total number of 5G base stations was at 1.559 million, accounting for 15.5% of the total number of mobile base stations in the country; in Q1, output of NEVs and solar cells of industrial enterprises above designated size increased by 140.8% and 24.3% year-on-year, respectively; the added value of high-tech manufacturing increased by 14.2%, and the added value of information transmission, software and information technology services increased by 10.8%; In Q1, the contribution rate of gross capital formation to economic growth was 26.9%, 13.2 percentage points higher than that of last year. In particular, with the effective support of special bonds, infrastructure investment increased by 8.5% year-on-year…
“The rapid growth of investment is inseparable from proactive policies. Policies such as adding new special debt quotas and lowering the deposit reserve ratio were issued in advance, which created conditions for achieving better-than-expected growth in the first quarter,” said Wang Yiming, vice chairman of China International Economic Exchange Center. “投资较快增长与政策的靠前发力是分不开的，提前下达新增专项债额度、下调存款准备金率等政策，为一季度实现好于预期的增长创造了条件. ”中国国际经济交流中心副理事长王一鸣说.
Later it says that out of the 3.65 trillion yuan of new special debt quota for this year, the amount for project construction has been fully allocated; out of the 1.46 trillion yuan allocated in advance last year, about 1.25 trillion yuan has been issued by the end of March this year…In the first quarter, new RMB loans hit a record high, the interest rate on corporate loans fell to the lowest level since statistics began, and more small re-loans for agricultural support were made. 积极的财政政策提升效能. 今年3.65万亿元新增专项债额度中，用于项目建设的额度已全部下达；去年提前下达的1.46万亿元额度中，截至今年3月底已累计发行约1.25万亿元...稳健的货币政策灵活适度。一季度，新增人民币贷款创新高，企业贷款利率降至有统计以来的低点，增加支农支小再贷款…
The next chunk talks about efforts to support enterprises and unblocking transport routes and logistics systems while containing the spread of the virus. This is followed by telling everyone that one needs to look at the economic situation from an overall perspective and approach it steadily, surely and in a disciplined manner.
It says that “‘for a hundred years, the Party has always been able to strategically recognise, analyse and assess major historical issues it has faced at key historical junctures, and has formulated correct political strategies. This is a powerful guarantee for the Party to overcome numerous risk challenges and keep going from victory to victory.’ Riding the wind and waves, steering and piloting the ship…from one important meeting to another and one important speech to another, General Secretary Xi Jinping has demonstrated a keen grasp of the general trend of history and a profound insight into the trends of the times. His superb political wisdom, extraordinary leadership skills, profound philosophical thinking and effective scientific methods have become a strong driving force for calmly responding to the battle and stabilising the overall situation.” “一百年来，党总是能够在重大历史关头从战略上认识、分析、判断面临的重大历史课题，制定正确的政治战略策略，这是党战胜无数风险挑战、不断从胜利走向胜利的有力保证.” 驭风踏浪，掌舵领航。一场场重要会议，一次次重要讲话，总书记深刻把握历史大势、深切洞察时代风云，高超的政治智慧、非凡的领导艺术、深邃的哲学思维、有效的科学方法，化为从容应战稳大局的强大动力.
The next chunk talks about establishing bottom-line thinking and firmly grasping the initiative of development. This basically talks about food security and self-reliance when it comes to this. The next section is about balancing security and development. This covers energy security, praising the steps taken last year amid the energy crisis. It says that “scientific policies based on our national conditions” were adopted, and the country did well to ensure “clean and efficient use of coal, increase the capacity of consuming new energy, and promoted the optimal combination of coal and new energy.” Then it says that since the beginning of this year, the global energy market situation has been difficult and energy prices have shot up. Despite that, the “stability and security” of China’s energy supply has been enhanced. “In the first quarter, the output of raw coal, crude oil and natural gas in industrial enterprises above designated size increased by 10.3%, 4.4% and 6.6% respectively year-on-year, and the energy consumption per 10,000 yuan GDP decreased by 2.3% year-on-year, which ensured energy security while reducing carbon emissions.” 一季度，规模以上工业原煤、原油、天然气产量同比分别增长10.3%、4.4%、6.6%，万元GDP能耗同比下降2.3%，在降碳的同时确保了能源安全.
The next bit talks about the challenges related to the pandemic. It says that:
“It is an important feature of a major economy that the industrial and supply chains should not fail at critical moments. The epidemic is a stress test under actual combat conditions. It not only shows China’s advantages in terms of its industrial system, strong mobilisation and organisation capacity, and its industrial transformation capacity, but also exposes the risks and hidden dangers existing in China’s industrial and supply chains. The more complex the environment becomes, the more important it is for us to look beyond the complexity to see the essential nature of the situation. We should remain calm in the face of crisis, seek opportunities in the midst of crises, forge ahead and open up new horizons, and strengthen our competitiveness and risk prevention and control capabilities. Accelerating the building of a new development pattern is a strategic choice to meet the opportunities and challenges in the new stage of development and to implement the new vision of development. The security and stability of industrial and supply chains is the foundation for building a new development pattern. Based on the current situation, policy has focussed on precise promotion of resumption of work and production. The 200 billion yuan re-lending for science and technology innovation and the 100 billion yuan re-lending for transportation and logistics will help leverage 1 trillion yuan of funds. Establish a white list of key industries such as automobiles and integrated circuits and foreign trade enterprises, and strive to stabilise the industrial and supply chains. Take a long-term view and accelerate the building of a new development pattern. Introduce an action plan for accelerating the building of a unified national market, continue to make innovations in the organisation and management mechanism of scientific research projects, set a benchmark for high-quality Belt and Road cooperation, and enhance the role of the new land-sea corridor in supporting regional industrial and supply chains. Cultivate opportunities in the midst of crisis and take firm steps in high-quality development.” 产业链、供应链在关键时刻不能掉链子，这是大国经济必须具备的重要特征。疫情是一次实战状态下的压力测试，既体现了我国完备产业体系、强大动员组织和产业转换能力的优势，也暴露出我国产业链、供应链存在的风险隐患。越是环境复杂，我们越要透过复杂现象看本质，做到临危不乱、危中寻机、开拓进取、开辟新局，着力增强自身竞争能力、风险防控能力，炼就金刚不坏之身。加快构建新发展格局，是应对新发展阶段机遇和挑战、贯彻新发展理念的战略选择。产业链供应链安全稳定是构建新发展格局的基础。立足当下，精准推动复工复产。2000亿元科技创新再贷款和用于交通物流领域的1000亿元再贷款，将撬动1万亿元资金；建立汽车、集成电路等重点产业和外贸企业白名单，着力稳定产业链供应链。放眼长远，加快构建新发展格局。加快建设全国统一大市场出台行动纲领，科研项目组织管理机制持续创新，树立高质量共建“一带一路”合作标杆，提升陆海新通道对地区产业链供应链的支撑作用……在危机中育先机、于变局中开新局，高质量发展步履坚定.
The next bit praises the steps taken on livelihood issues and to stabilise employment. It says that this is an important year and it is important to meet the challenges, combine the firmness and flexibility of the strategy, act in a broad and subtle manner, and generate even more powerful momentum for steady progress.” The last few sections essentially underscore the following messages:
Adhere to the five strategic roads and keep in mind the five strategic advantages
Remain resolute under the leadership of the CCP
Trust that the system of socialism with Chinese characteristics has “remarkable strength”
The Chinese economy has grown stronger and much more resilient since the 18th Party Congress
The Party has maintained “a peaceful and stable social environment” since the 18th Party Congress
The Chinese economic, technological and developmental capacity remains full of vigour and vitality – examples given here are the Beijing Olympics and the space programme
The Chinese economy has survived many storms in the past but it has emerged stronger after them - the examples given here are the 1998 floods, the SARS outbreak, the Wenchuan earthquake, the Asian financial crisis, the global financial crisis and changes in the international economic and trade environment. But it says that it is important to follow what the 2021 CEWC stated, i.e., uphold the centralised, unified leadership of the CPC Central Committee, pursue high-quality development, taking economic development as the central task is the Party’s basic line, persist in striving for progress while maintaining stability, strengthen overall planning and coordination and adhere to a systems approach.
Persistence is victory. This calls for adhering to the dynamic zero-COVID policy. In this section, the piece also reiterates that 4-4-2 formulation, the need to understand the decisive significance of the Two Establishments, and “align our thinking and action with the scientific judgement of the situation and the work deployments of the CPC Central Committee with Comrade Xi Jinping at its core, maintain strategic focus and remain confident of victory…”
“It is unrealistic to think of a peaceful life without struggle.”
“China’s development is still in an important period of strategic opportunities. The opportunities are more strategic and malleable, while challenges are more complex and overarching. The general secretary has observed with foresight: ‘At present, we have entered a period of historic convergence in which the new round of scientific and technological revolution and industrial transformation in the world are converging with the transformation of China’s development model. We are faced with both a once-in-a-lifetime historical opportunity and a severe challenge of a widening gap’.” This is a challenging situation. “The most essential feature of building a new development pattern is to achieve a high level of self-reliance and self-improvement. In the face of increased uncertainty and instability in the world economy, macro stability has become a scarce resource. In the face of increasing uncertainty and instability in the world economy, the only certainty is to carry out our own tasks unswervingly. Opportunities are to be seized. History does not wait for those who hesitate, wait and watch, slack off, or are weak. 我国发展仍处于重要战略机遇期，机遇更具有战略性、可塑性，挑战更具有复杂性、全局性。总书记深谋远虑：“现在，我们迎来了世界新一轮科技革命和产业变革同我国转变发展方式的历史性交汇期，既面临着千载难逢的历史机遇，又面临着差距拉大的严峻挑战.” 形势逼人，挑战逼人，使命逼人。构建新发展格局最本质的特征是实现高水平的自立自强。面对世界经济不稳定性不确定性明显增强，宏观稳定成为稀缺资源。面对世界经济不稳定性不确定性明显增强，唯一确定的就是，坚定不移做好自己的事情. 机遇是抢出来的，历史从不等待一切犹豫者、观望者、懈怠者、软弱者.
In the end, the piece says: “ In the second half of 2022, the 20th Party Congress will be held. Maintain a stable and healthy economic environment, a peaceful social environment and a clean and upright political environment. The whole Party, the whole army and the people of all ethnic groups in the country should unite as one and greet this important event in the political life of the Party and the country with confidence.” 2022年下半年，党的二十大将召开。保持平稳健康的经济环境、国泰民安的社会环境、风清气正的政治环境，全党全军全国各族人民团结一心、信心满怀地迎接这一党和国家政治生活中的大事。
Page 2: A couple of reports to note on the page. First, there’s a report of the conversation between the Chinese and Pakistani foreign ministers. I covered this yesterday. Second, a report about comments by Shen Yueyue, the president of the SCO’s Good-Neighbourliness Commission, at a recent forum on cooperation between non-governmental entities across the SCO countries. Third, a report on a meeting of young political elites of the ruling parties of China and Israel. ILD’s Song Tao and Evgeny Sova, Deputy Speaker of the Knesset, were the key speakers. The meeting was attended by more than 50 people, including representatives of six parties from the ruling coalition in Israel and there were business representatives from China and Israel.
Next, there’s a piece by ASEAN Deputy Secretary General for ASEAN Economic Community Satvinder Singh. He writes that:
“The global economic landscape is changing rapidly, and it is necessary for ASEAN and China to re-examine and upgrade their economic partnership to fully tap new growth drivers and prevent global supply chain risks. Before the outbreak of the pandemic, trade frictions and natural disasters had already affected the global manufacturing layout. At present, the conflict between Russia and Ukraine is causing global food, energy and mineral prices to rise, and creating more risks for the global supply chain. The Asian Development Bank has lowered its forecast for economic growth in East Asia and the ASEAN region in 2022. ASEAN and China can take a series of measures to enhance their economic partnership and help strengthen supply chain networks across the region.
First, ASEAN and China should jointly promote wider regional economic integration under the RCEP framework and build a closer and stronger regional value chain system. As an integrated market, RCEP covers about 1/3 of the world's total population, economic volume and total trade volume. Benefiting from the agreement, ASEAN and Chinese companies will enjoy preferential treatment when selecting suppliers and selling final products in each other’s markets. This will further promote the economic growth of both sides and the attractiveness of external investment. Whether RCEP can fully unleash its potential depends on whether the companies of each member state can really make good use of this integrated large market. All parties should establish a strong cooperation and monitoring mechanism to support member states in the full implementation of the agreement and help the least developed member states to strengthen capacity building.
Second, the two sides should upgrade the ASEAN-China Free Trade Agreement to ensure that it is forward-looking, progressive, inclusive and resilient in addressing new challenges brought about by the digital economy, environment and climate issues. Effectively addressing these new challenges requires both parties to build new supply chains in circular products, climate change-related projects, carbon trading, and digital products.
Third, ASEAN and China should address the infrastructure gaps that prevent the two sides from strengthening physical and digital connections. ASEAN needs to plan priority projects in the region and strengthen the connection between the ‘Master Plan for ASEAN Connectivity 2025’ and the ‘Belt and Road’ initiative. Both sides can leverage Belt and Road cooperation to leverage public and private sector investment in infrastructure. The two sides should also actively adopt technological solutions such as digital trade technology, including strengthening ‘single window’ cooperation.”
全球经济格局正快速变化，东盟与中国有必要重新审视并升级双方的经济伙伴关系，以充分挖掘新的增长动力，防范全球供应链风险。早在疫情发生前，贸易摩擦和自然灾害等已经对全球制造业布局造成影响。目前，俄乌冲突正导致全球食品、能源和矿产品价格上涨，并给全球供应链制造更多风险。亚洲开发银行已经下调对东亚和东盟地区2022年经济增速的预测。东盟同中国可采取一系列措施提升彼此经济伙伴关系，帮助整个地区加强供应链网络。首先，东盟和中国应共同推动RCEP框架下更广泛的区域经济一体化建设，建立更紧密、更强大的区域价值链体系。RCEP作为一体化市场，覆盖人口数量、经济体量和贸易总额均占世界总量约1/3。受益于该协定，东盟和中国企业在彼此市场选择供应商、销售最终产品时都将享受优惠待遇。这将进一步促进双方经济增长和对外部投资的吸引力。RCEP能否充分释放潜能，取决于各成员国企业能否真正用好这个一体化大市场。各方应建立强有力的合作和监督机制，支持成员国全面实施该协定，并帮助最不发达成员国加强能力建设。其次，双方应升级东盟—中国自由贸易协定，确保其在应对数字经济、环境及气候问题等带来的新挑战时，具备前瞻性、先进性、包容性和韧性。有效应对这些新挑战，需要双方在循环产品、气候变化相关项目、碳交易、数字产品等方面打造新供应链。目前，东盟与中国已有意向升级东盟—中国自由贸易协定，并将着重对这些新问题进行深入探讨。再次，东盟和中国应解决阻碍双方加强物理和数字联系的基础设施短板。东盟需要规划好区域内优先项目，加强《东盟互联互通总体规划2025》同共建“一带一路”倡议的对接。双方可利用“一带一路”合作撬动公共和私营部门对基础设施的投资。双方还应积极采用数字贸易技术等技术解决方案，包括加强“单一窗口”合作。
Page 3: The entire page is dedicated to stories related to the COVID-19 outbreaks in China. First, there is a 仲音 article. This says that the situation in Shanghai is improving. More than 80% of the infected people have been cured and discharged, and the number of people being treated in hospitals is less than 7,000. The improvements in the city, the author argues, are “a strong confirmation of the scientificity and effectiveness of ‘dynamic clearing’, and a strong refutation of the ‘lying flat’ argument.” It further argues that some countries choose to let go of prevention and control because they could not identify an ideal strategy to control the pandemic. Coupled with complex factors such as a slowing economy and a fatigue mentality, ‘lying flat’ was actually a choice made out of helplessness.”
The author adds:
“Some countries have declared the plan of ‘co-existence with Covid-19’. However, after all the restrictions were lifted legally, the epidemic situation continued to deteriorate, with infection levels reaching historic highs and putting a heavy strain on health systems that are still struggling to function. In some countries, more than 1 million COVID-19 deaths have been reported due to uncontrolled transmission of the virus, and more than 200,000 children have become ‘COVID-19 orphans’ due to the death of their parents or other guardians. To ‘lie down’ when the global pandemic has not yet shown substantial improvement is undoubtedly disregarding science, and displaying contempt for the complexity and difficulty of the fight against the pandemic, and demonstrating an extreme sense of irresponsibility with regard to the public’s right to life and health. This also tells us that one cannot ‘win’ by ‘lying down’, and in doing so, China will lose its hard-won prevention and control achievements.” 事实上，一些国家之所以选择放开防控，是由于找不到控制疫情的理想策略，加上经济下行、抗疫疲劳心态等复杂因素，“躺平”实际上是无奈的选择。然而，随即带来的后果是病例数激增、死亡病例数高企。有的国家宣布“与新冠病毒共存”计划，在法律意义上解除所有限制措施后，疫情持续恶化，感染水平升至历史最高，给医疗卫生系统带来沉重压力，目前其医疗体系仍处于艰难运转的状态。有的国家由于放任病毒传播，新冠肺炎死亡病例超过100万例，且有超过20万名儿童因父母或其他监护人在新冠肺炎疫情中身亡，不幸沦为“新冠孤儿”。在全球疫情尚未出现实质性好转时，就选择“躺平”，无疑是对科学的漠视，对抗疫斗争的复杂性和艰巨性的轻视，对公众生命权和健康权的极端不负责任。这也启示我们，“躺平”不可能“躺赢”，必会丧失我国前期来之不易的防控成果.
“From the economic point of view, taking strict measures to prevent and control the fierce epidemic will inevitably have a certain temporary impact on the economic and social development. However, it must be recognised that only when the epidemic is effectively controlled can economic development and normal life have favourable conditions; the sooner the epidemic is controlled, the lesser will be the impact on economic development. We should see with confidence that the epidemic prevention and control in China has a good cost-benefit ratio. In 2020, it was precisely because China took the lead in controlling the epidemic and resuming production that China became the first major economy to turn negative economic growth into positive growth. In 2021, China's economy grew by 8.1% year on year, with an average growth of 5.1% over the past two years. China's economic development and epidemic prevention and control remain the world's leaders; In the first quarter of this year, China's GDP grew by 4.8% year-on-year, 0.8 percentage points higher than that of the fourth quarter of last year. The economy got off to a stable start on the whole. This irrefutably proves that effective epidemic prevention and control is a strong guarantee for economic development, and solid epidemic prevention and control results can create a stable and safe development environment for economic growth. If we choose to ‘lie down’, the epidemic is bound to have a severe impact on economic and social development, and is bound to cause greater losses.” 从经济角度而言，对凶猛疫情采取严格防控措施，难免会对经济社会发展造成一定的暂时影响。但必须认识到，只有疫情被有效控制住，经济发展和正常生活才能具备有利条件；疫情越早得到控制，经济发展所受影响就越小。我们应该自信地看到，我国疫情防控有良好的成本效益比。2020年，正因为我国在世界上“率先控制疫情”“率先复工复产”，才最终在主要经济体中“率先实现经济增长由负转正”；2021年，我国经济同比增长8.1%，两年平均增长5.1%，经济发展和疫情防控保持全球领先地位；今年一季度，我国国内生产总值同比增长4.8%，增速高于上年四季度0.8个百分点，经济运行总体实现平稳开局。这无可辩驳地证明，有效的疫情防控是经济发展的有力保障，稳固的防疫成果可以为经济增长营造稳定安全的发展环境。选择“躺平”，疫情势必会对经济社会发展产生严重冲击，势必会造成更大的损失.
Next, there’s an interview with Sheng Laiyun, deputy chief of the National Bureau of Statistics. Sheng acknowledges the weakening of expectations as a “relatively prominent problem” in the economy. He says that this is evident from the fact that in April, the manufacturing PMI and the non-manufacturing business activity index fell to 47.4% and 41.9%. He adds that the internal and external changes “have had a significant impact on market confidence and business expectations.” He calls for the need for policy stability, easing difficulties of market entities and pursuing innovation. He adds: “economic growth has slowed down, but the direction of high-quality development has not changed.”
Sheng acknowledges that the current COVID-19 outbreaks have had a “huge impact on China’s economy. In March, total retail sales of consumer goods and the service industry production index turned from positive to negative, and production and logistics were hindered. The total social freight volume fell by 2.2%, and the express delivery business volume fell by 3.1%. The added value of industries above designated size in Shanghai and Jilin decreased by 10.9% and 36.7% year-on-year, respectively, and the retail sales of consumer goods of units above designated size decreased by 18.2% and 69.9%, respectively. Although the epidemic has had a greater impact on production and life in some areas, in general, its impact is periodic, short-term, and extrinsic. With the gradual emergence of the policy effect of efficiently coordinating epidemic prevention and control and economic and social development, the impact of the epidemic is expected to gradually weaken. Judging from the situation in May, the epidemic situation in Jilin, Shanghai and other places has been effectively controlled, the resumption of work and production is progressing in an orderly manner, and some leading indicators such as power generation and consumption have shown positive changes.” 盛来运：本轮疫情确实对中国经济带来巨大冲击。3月份，全国社会消费品零售总额、服务业生产指数由增转降，生产物流受阻，全社会货运量下降2.2%，快递业务量下降3.1%。上海、吉林规模以上工业增加值同比分别下降10.9%、36.7%，限额以上单位消费品零售额分别下降18.2%、69.9%。尽管疫情对部分地区生产生活带来较大影响，但总体上看，是阶段性的、短期的、外在的。随着高效统筹疫情防控和经济社会发展的政策效应逐步显现，疫情冲击有望逐步减弱，前期因疫情压抑的经济活动也将不断释放，经济有望迎来复苏的拐点。从5月份情况看，吉林、上海等地疫情已经得到有效控制，复工复产有序推进，发用电量等一些先行指标已出现积极变化.
He then emphasises the idea that China’s economic fundamentals and long-term growth prospects remain strong. Towards the end, he talks about steps going forward. Sheng says:
First, unswervingly adhere to the general policy of ‘dynamic clearing’
Second, intensify the policy of stabilising growth. Here, he primarily talks about infrastructure investment. “From historical experience, expanding infrastructure investment is the most effective quick method to deal with short-term economic difficulties. Based on China’s reality, there is still very broad space for infrastructure investment. China’s per capita infrastructure stock is only equivalent to 20-30% of developed countries, and the per capita railway operating mileage is less than 30% of that in the United States. In the field of new infrastructure and facilities related to people’s livelihood, there are even more promising opportunities. The number of 5G mobile phone users in China only accounts for about 20% of the total number of mobile phone users, and the consumption of clean energy such as natural gas, hydropower, nuclear, wind and solar energy merely accounts for about 25% of the total energy consumption.”
Third, support market entities via tax rebates, tax reductions, deferred payment of social security premiums, special funds for bailouts, and inclusive loans for small and micro businesses.
Fourth, vigorously stabilise employment and protect people’s livelihood.
Fifth, focus on ensuring market supply and stable prices.
Page 4: A report about Guo Shengkun’s comments at a meeting on innovation in political and legal work in the new era. Guo said that “it is necessary to take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guide to improve political stand, adhere to the correct political direction and public opinion orientation, do a solid job in political and legal propaganda and public opinion, better serve the overall situation, respond to social concerns, and further gather a strong spiritual force to promote the development and progress of the political and legal undertakings.”
“Guo Shengkun demanded that we should strengthen ideological and political guidance, thoroughly study, publicise and implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly study, publicise and implement Xi Jinping Thought on Rule of Law, educate and guide the political and legal police affairs cadre to deeply understand the decisive significance of the Two Establishments, and strengthen the ‘four consciousness’, strengthen the ‘four self-confidences’, achieve "two safeguards’...It is necessary to adhere to the people-centred development concept, focus on the decisions and deployments of the Party Central Committee, focus on the urgent and anxious problems of the masses, earnestly perform our duties and responsibilities, strictly regulate fair and civilised law enforcement and justice, safeguard the safety of people’s lives and property and their legitimate rights and interests, and let the people truly feel that fairness and justice are around us. We must firmly grasp the correct orientation of public opinion, follow the laws of political and legal work, news dissemination and network dissemination, actively innovate the concepts, methods and means of political and legal propaganda and public opinion work…” 郭声琨要求，要加强思想政治引领，深入学习宣传贯彻习近平新时代中国特色社会主义思想，深入学习宣传贯彻习近平法治思想，教育引导广大政法干警深刻领悟“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”，忠实履行好党和人民赋予的职责使命。要坚持以人民为中心的发展思想，围绕党中央决策部署，聚焦群众急难愁盼问题，认真履职尽责，严格规范公正文明执法司法，维护群众生命财产安全和合法权益，让人民群众切实感受到公平正义就在身边。要牢牢把握正确舆论导向，遵循政法工作规律、新闻传播规律和网络传播规律，积极创新政法宣传舆论工作理念方法手段，把握好时度效，积极回应社会关切，不断提高传播力、引导力、影响力、公信力，努力汇聚强大正能量.
Page 9: There’s a special edition feature on the page today. It talks about the first of the 13 points highlighted in the history resolution passed at the 6th Plenum. The first one of these is about upholding the Party’s overall leadership. Today’s three pieces are meant to elaborate on the “historical achievements and historic changes in upholding the party's overall leadership in the new era.”
The first piece is by Xu Weixin from the Research Center for Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era at the Central Party School. It’s worth reading through this article if one is interested in getting an understanding of how systematically the Party has cannibalised the state and expanded its remit to all domains under Xi Jinping. For instance, Xu writes:
“The Party’s leadership (at present) is comprehensive, systematic and holistic. The Party, the government, the military and the people - east, west, north and south - the Party leads everything. As the General Secretary Xi Jinping pointed out, ‘The Party’s leadership must be comprehensive, systematic, and holistic, and must be reflected in all aspects of economic, political, cultural, social, and ecological progress, as well as in national defense, the armed forces, national reunification, diplomacy, and Party building. If any area, aspect or link is missing or weakened, it will weaken the strength of the Party and harm the cause of the Party and the country’.” 党的领导是全面的、系统的、整体的。党政军民学，东西南北中，党是领导一切的。总书记指出：“党的领导必须是全面的、系统的、整体的，必须体现到经济建设、政治建设、文化建设、社会建设、生态文明建设和国防军队、祖国统一、外交工作、党的建设等各方面。哪个领域、哪个方面、哪个环节缺失了弱化了，都会削弱党的力量，损害党和国家事业.”
I am not doing a detailed breakdown, but this bit at the end of the piece stands out.
Deeply understand the decisive significance of ‘Two Establishments’ and resolutely achieve the ‘two safeguards’. As General Secretary Xi Jinping has pointed out: ‘The building of socialism with Chinese characteristics needs four beams and eight pillars to support it. The Party is the general skeleton/framework/edifice (骨架) running through it, and the CPC Central Committee is the pillar’. In the new era and on the new journey, in order to uphold and strengthen the Party’s overall leadership and ensure that the Party will always remain a strong leadership core in the historical process of upholding and developing socialism with Chinese characteristics in the new era, we must profoundly understand the decisive significance of the ‘Two Establishments’, resolutely safeguard General Secretary Xi Jinping’s position as the core of the CPC Central Committee and the core of the whole Party. Consciously be a firm believer and faithful practitioner of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and effectively transform the ‘Two Establishments’ into the ideological, political, and action consciousness of achieving the ‘two safeguards’.” 深刻领会“两个确立”的决定性意义，坚决做到“两个维护”。总书记指出：“中国特色社会主义大厦需要四梁八柱来支撑，党是贯穿其中的总的骨架，党中央是顶梁柱。”新时代新征程上，坚持和加强党的全面领导，确保党在新时代坚持和发展中国特色社会主义的历史进程中始终成为坚强领导核心，必须深刻领会“两个确立”的决定性意义，坚决维护习近平总书记党中央的核心、全党的核心地位，自觉做习近平新时代中国特色社会主义思想的坚定信仰者和忠实实践者，切实把“两个确立”转化为做到“两个维护”的思想自觉、政治自觉、行动自觉。
Page 10: First, a report about data from the Ministry of Commerce on FDI flows into China. Xinhua reports:
“Foreign direct investment (FDI) into the Chinese mainland, in actual use, expanded 20.5% year on year to 478.61 billion yuan in the first four months of the year…In U.S. dollar terms, the inflow went up 26.1% year on year to 74.47 billion dollars…China’s FDI inflow recorded double-digit growth in the January-April period on the high base of 38.6% growth in the same period last year, said MOC spokesperson Shu Jueting.”
“FDI in China's high-tech industry logged a sharp year-on-year increase of 45.6% during the period, up 25.1%age points from the average growth in all sectors. FDI in the high-tech manufacturing sector rose 36.7% from the same period last year, while that in the high-tech services sector surged 48.3% year on year, MOC data shows. Major foreign-funded projects also registered steady expansion in the first four months…In the January-April period, China saw 185 newly-added major projects, each with foreign investment over 100 million dollars, which means 1.5 major foreign-funded projects were launched on average each day.”
“In the first four months, FDI flowing into the country’s central region reported a rapid year-on-year increase of 43.7%, followed by 26.9% in the western region and 18.7% in the eastern region.”
Second, a report informing that in 2021, Guangdong’s foreign trade was 8.27 trillion yuan, a net increase of 1.2 trillion yuan a year, with a growth rate of 16.7%; FDI 184 billion yuan, an increase of 13.8%; total retail sales of social consumer goods reached 4.4 trillion yuan, an increase of 9.9%.
Page 16: On the international page, the lead story says that:
“As of May 12, 15,569 people have been killed in gun violence in the United States this year. Gun violence has become a chronic disease in American society. Owing to multiple factors such as political polarisation, this problem is becoming increasingly difficult to resolve. The intensifying gun violence highlights the weak governance by the US government and the hypocrisy of American democracy, which is unable to protect people’s lives.” 截至5月12日，美国今年发生的枪支暴力事件已造成15569人丧生。枪支暴力已成为美国社会一大顽疾。在政治极化等多重因素影响下，这一问题越来越难以解决。愈演愈烈的枪支暴力凸显美国政府治理不力及美式民主的虚伪，美式民主无力保护民众生命安全。
Another story says that American media reports inform that US agencies have been sharing intelligence with the Ukrainians amid the ongoing war and have been providing support for military operations. This basically is about the controversies surrounding recent reporting by NYT and Washington Post.
PD says that this shows that instead of promoting peace, “the United States and NATO continue to fuel the situation in Ukraine, which once again highlights the destructive role that the United States and NATO are playing.” The report also says that President Joe Biden was unhappy with the leak of information to the press. The PD report quotes Tucker Carlson saying that US officials “are suspected of trying to exacerbate the Russia-Ukraine conflict by bragging about the US providing intelligence support to Ukraine.” Thomas Friedman is quoted as calling officials bragging about the support as being “extremely stupid” and arguing that “there is a growing danger that the United States is provoking the Russia-Ukraine conflict” and that the longer the conflict lasts, the greater the chance that Washington will make a catastrophic miscalculation.” 《纽约时报》专栏作家托马斯·弗里德曼表示，美国一些官员高调泄露甚至吹嘘美乌情报共享是“极其愚蠢的”。他强调，“美国挑唆俄乌冲突意味着越来越大的危险”，俄乌冲突持续的时间越长，美国政府对局势作出灾难性误判的概率就越大.