Xi Meets To Lam - Li to Visit Russia - Eyeing Greater FDI - Pan Gongsheng on PBOC's Policy Direction - Flood Situation 'Complex & Severe'
Here are the key reports and articles that I found noteworthy from the People's Daily’s edition on Tuesday, August 20, 2024.
Page 1: The lead story on the page is about Xi Jinping’s meeting with visiting CPV General Secretary and Vietnamese President To Lam. Xinhua says:
“China is the destination for Lam's first overseas visit after he took office as general secretary of the CPV Central Committee. Xi said this fully reflects the great importance Lam attaches to the relations between the two parties and the two countries, as well as the high level and strategic nature of China-Vietnam relations. He pointed out that the CPC and the CPV have passed down their shared ideals and beliefs from generation to generation (i.e., these are the red genes), forging the traditional friendship of ‘comrades-plus-brothers’ between the two countries. As two of the ruling Communist parties in today’s world, the CPC and the CPV should uphold and continue their traditional friendship, keep in mind their common mission, adhere to the leadership of the Communist party and the socialist system, continue to deepen the building of the China-Vietnam community with a shared future that carries strategic significance, and jointly promote the development of the world socialist cause, Xi said.”
Xi added: “I would like to establish a good working relationship and personal friendship with Comrade To Lam, and jointly lead the construction of the China-Vietnam community of shared future to grow deeper and become more solid.”
“Xi Jinping pointed out that faced with changes in the world, the times and history, China and Vietnam have maintained rapid economic development and long-term social stability, demonstrating the superiority of the socialist system and the vitality of the socialist cause. China regards Vietnam as a priority direction of its peripheral diplomacy, supports Vietnam in adhering to the leadership of the CPV, taking the socialist road that suits its national conditions, and deepening reform and opening up and socialist modernization. Amid this critical period in the development and revitalization of their respective countries, China and Vietnam must accurately grasp the direction of building a community with a shared future, consolidate the ‘six mores’ 六个更 development pattern featuring higher political mutual trust, more solid security cooperation, deeper pragmatic cooperation, firmer public opinion foundation, tighter multilateral coordination and cooperation, and better management and resolution of differences. China is willing to maintain close strategic communication and high-level exchanges with Vietnam, firmly support each other, actively explore the expansion of cooperation in docking the BRI and the ‘Two Corridors and One Circle’ framework, accelerate the ‘hard connectivity’ of railways, highways and port infrastructure, enhance the ‘soft connectivity’ of smart customs, and work together to build a safe and stable industrial chain and supply chain. Taking the opportunity of celebrating the 75th anniversary of the establishment of diplomatic relations between China and Vietnam next year, we will jointly hold a series of activities such as the ‘China-Vietnam Year of Cultural Exchanges’ to consolidate the public opinion foundation of the two countries. The two sides should uphold the basic norms of international relations such as the Five Principles of Peaceful Coexistence, promote equal and orderly world multipolarization, inclusive and beneficial economic globalisation, safeguard international fairness and justice and the common interests of developing countries, and promote the building of a community with a shared future for mankind.” 习近平指出，面对世界之变、时代之变、历史之变，中越两国保持经济快速发展和社会长期稳定，彰显了社会主义制度的优越性和社会主义事业的生命力。中方将越南作为周边外交优先方向，支持越南坚持党的领导，走符合本国国情的社会主义道路，深入推进革新开放和社会主义现代化事业。在各自国家发展振兴的关键时期，中越要把准命运共同体建设的方向，夯实政治互信更高、安全合作更实、务实合作更深、民意基础更牢、多边协调配合更紧、分歧管控解决更好的“六个更”发展格局。中方愿同越方保持密切战略沟通和高层交往，坚定相互支持，积极探讨拓展共建“一带一路”倡议和“两廊一圈”框架对接合作，加快推进铁路、高速公路、口岸基础设施“硬联通”，提升智慧海关“软联通”，携手打造安全、稳定的产业链供应链。以明年庆祝中越建交75周年为契机，共同举办好“中越人文交流年”等系列活动，巩固两国民意根基。双方要秉持和平共处五项原则等国际关系基本准则，推动平等有序的世界多极化、普惠包容的经济全球化，维护国际公平正义和发展中国家共同利益，推动构建人类命运共同体.
Xi Jinping introduced the relevant situation related to the Third Plenary Session of the 20th CPC Central Committee, emphasising that China’s further comprehensive deepening of reform and promotion of high-level opening up will bring new impetus and new opportunities for the development of countries including Vietnam. China is willing to deepen exchanges of experience in party and state governance with Vietnam, jointly improve the modernization level of the national governance system and governance capacity, and jointly move towards modernization. 习近平介绍了中国共产党二十届三中全会有关情况，强调中国进一步全面深化改革、推进高水平对外开放将为包括越南在内的各国发展带来新动力、新机遇。中方愿同越方深化治党治国理政经验交流，共同提升国家治理体系和治理能力现代化水平，共同迈向现代化.
As per Xinhua, Lam said that the “CPV and the Vietnamese government always attach importance to developing relations with China and regard China as the strategic choice and top priority of Vietnam’s foreign policy.”
He added that the “CPV and the Vietnamese government will carry on the legacy of Comrade Nguyen Phu Trong, adhere to the leadership of the Communist party and the socialist path, deepen the Vietnam-China comprehensive strategic cooperative partnership, and push forward the building of the Vietnam-China community with a shared future that carries strategic significance. Vietnam firmly pursues the one-China policy, supports China in achieving national reunification, and firmly opposes any interference in China's internal affairs.”
Lam praised Xi: “Under the leadership of the Party Central Committee with Comrade Xi Jinping as the core, China has successfully completed all the reform tasks determined by the Third Plenary Session of the 18th CPC Central Committee, achieved tremendous development achievements, and its international status and influence have been increasingly enhanced, making important contributions to world peace and development and the progress of all mankind.” 在以习近平同志为核心的党中央领导下，中国胜利完成中共十八届三中全会确定的所有改革任务，取得巨大发展成就，国际地位和影响力日益提升，为世界和平与发展以及全人类进步作出重要贡献。
He added that “I believe that under the leadership of General Secretary Xi Jinping, China will successfully achieve the second centenary goal and build a socialist modern power in an all-round way.” 相信在习近平总书记领导下，中国必将胜利实现第二个百年奋斗目标，全面建成社会主义现代化强国.
“Vietnam adheres to independence and self-reliance, firmly adheres to the one-China policy, believes that Taiwan is an inalienable part of China’s territory, firmly opposes all forms of ‘Taiwan independence’ secessionist activities, and firmly supports China in achieving national reunification. Hong Kong, Xinjiang and Tibet are all China’s internal affairs. Vietnam firmly opposes any force interfering in China’s internal affairs.” 越方坚持独立自主，坚定奉行一个中国政策，认为台湾是中国领土不可分割的一部分，坚决反对一切形式的“台独”分裂活动，坚定支持中国实现国家统一。香港、新疆、西藏都是中国内部事务，越方坚决反对任何势力干涉中国内政.
Lam also talked about having “mutually beneficial cooperation in the fields of national defense security, economic and trade investment, and cross-border infrastructure connectivity.” He added that “Vietnam is willing to properly manage maritime differences with China and jointly maintain regional peace and stability.” He also backed GDI, GSI and GCI, saying that Vietnam “supports and is willing to actively participate” in them.
The two sides signed a bunch of deals covering areas like cooperation between party schools, on connectivity, industry, finance, customs inspection and quarantine, health, news agencies and media, local governments, people’s livelihood and other fields. A joint statement was also issued.
Also on the page are reports of To Lam’s meetings with Wang Huning and Zhao Leji. On Page 2, is the report on his meeting with Li Qiang.
Xinhua’s report on the meeting with Li says:
“China is willing to move faster to synergize the Belt and Road Initiative with Vietnam’s Two Corridors and One Economic Circle strategy, enhance connectivity, expand trade and investment, and strengthen cooperation in such areas as agriculture, infrastructure, energy, the digital economy, green development and key minerals, Li said. China and Vietnam will host a series of activities celebrating the 75th anniversary of bilateral ties next year. Li said the two countries should deepen people-to-people exchange in areas such as culture, tourism, education and health to promote understanding and amity between the two peoples. He also urged enhanced coordination under multilateral mechanisms such as the United Nations, ASEAN and Lancang-Mekong Cooperation, and called for greater efforts to promote an equal, orderly, multipolar world and economic globalization that benefits all, aiming to contribute to regional and global peace and development.”
“To Lam said that Vietnam has always considered relations with China to be a strategic choice and top priority in its foreign policy, and that Vietnam adheres firmly to the one-China principle. He said his country is willing to work with China to strengthen exchange at all levels, consolidate political mutual trust, and deepen cooperation in such fields as trade, investment, transportation, tourism and education to promote the construction of a Vietnam-China community with a shared future that carries strategic significance.” In the PD report, he also backs GDI, GSI and GCI.
Also on the page is a report on Zhao Leji’s meeting with Fiji PM Sitiveni Rabuka. Xinhua says:
“China is willing to work with Fiji to implement the important consensus reached by the leaders of the two countries, carry forward the traditional friendship, consolidate political mutual trust, continuously expand all-round mutually beneficial cooperation and push forward the China-Fiji comprehensive strategic partnership, Zhao said. Zhao added that the NPC of China is willing to continue to strengthen exchanges at all levels with the Parliament of Fiji, timely approve relevant legal documents and provide legal guarantees for bilateral cooperation.”
Next, there’s a report on the State Council’s executive meeting, which approved four documents. These are:
Guidelines on promoting the high-quality development of services trade through high-level opening up.
Special Administrative Measures (Negative List) for Foreign Investment Access (2024 Edition)
Regulations on the Filing and Review of Laws and Regulations (Draft); this deals with issues such as inconsistencies between local or departmental legislation and higher-level laws, impacts on the construction of a unified national market, and harm to the business environment.
Regulations on Urban Public Transportation (Draft)
The meeting also approved five nuclear power projects, and it discussed policy measures to support the high-quality development of innovative SMEs.
“The meeting pointed out that accelerating the development of trade in services is an inevitable requirement for expanding high-level opening up and cultivating new momentum for foreign trade development. It is necessary to improve the level of liberalisation and facilitation of trade in services, fully implement the negative list of cross-border trade in services, promote the comprehensive pilot demonstration of expanding the opening up of the service industry, and promote the cross-border flow of resource elements such as talents, funds, technological achievements, and data. It is necessary to promote innovation and development in key areas of trade in services, promote the integration of trade in services and trade in goods, support the international development of professional services such as finance, consulting, design, certification and accreditation, and create new growth points for trade in services.” 会议指出，加快发展服务贸易是扩大高水平对外开放、培育外贸发展新动能的必然要求。要提升服务贸易自由化便利化水平，全面实施跨境服务贸易负面清单，推进服务业扩大开放综合试点示范，促进人才、资金、技术成果、数据等资源要素跨境流动。要推进服务贸易重点领域创新发展，促进服务贸易与货物贸易相互融合，支持金融、咨询、设计、认证认可等专业服务国际化发展，打造新的服务贸易增长点.
“The meeting pointed out that it is necessary to further relax foreign investment access, completely remove foreign investment access restrictions in the manufacturing sector, and accelerate the opening of service sectors such as telecommunications, education, and medical care. It is necessary to adapt to the new situation and optimise policies to attract foreign investment, respond to the reasonable demands of foreign investors in a timely manner, and introduce more practical measures in optimising the business environment and improving service guarantees.” 会议指出，要进一步放宽外资准入，全面取消制造业领域外资准入限制措施，抓紧推进电信、教育、医疗等服务领域开放。要适应新形势优化吸引外资政策，及时回应外商合理诉求，在优化营商环境、完善服务保障等方面出台更多务实举措.
The report adds:
“The meeting pointed out that it is necessary to vigorously cultivate and develop the high-quality development of innovative SMEs, strengthen the coordination of fiscal, taxation, finance, science and technology, industry, talents and other policies, and support the innovation and development of enterprises throughout the chain. It is necessary to continuously optimise the development environment, improve the mechanisms of tiered cultivation, factor guarantee, and public services in order to help enterprises solve practical difficulties. It is necessary to take the implementation of large-scale equipment renewal as an opportunity to promote the digitalization, intelligence and green transformation of specialised, sophisticated and innovative SMEs, and continuously enhance their core competitiveness.” 会议指出，要大力培育发展专精特新中小企业，强化财税、金融、科技、产业、人才等政策协同，全链条支持企业创新发展。要持续优化发展环境，完善梯度培育、要素保障、公共服务等机制，帮助企业解决实际困难。要以实施大规模设备更新为契机，推动专精特新中小企业数字化、智能化、绿色化转型，不断提升核心竞争力.
Page 2: There’s a report informing that Li Qiang will be visiting Russia and Belarus. Xinhua reports:
“During his visit to Russia, Premier Li will hold the 29th regular meeting of Chinese and Russian heads of government with Mikhail Mishustin to exchange in-depth views on bilateral relations, practical cooperation and important issues of common interest, Mao added. She also noted that China and Belarus are all-weather comprehensive strategic partners and in recent years, under the personal care and promotion of the two heads of state, China-Belarus relations have maintained a sound momentum of development. The two sides have strengthened political mutual trust and achieved fruitful results in Belt and Road cooperation, she said. During his visit to Belarus, Premier Li will hold talks with Roman Golovchenko and exchange in-depth views on bilateral relations and cooperation in various fields, Mao said.”
Another report informs that four seminars will be held at the Central Party School, from August to September this year, for central-level cadres to study and implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the Third Plenary Session. The first of these was held on Monday, with Li Ganjie delivering a speech.
Next, there’s an interview with PBOC Governor Pan Gongsheng. The first question is around building a modern central bank system. Pan identifies four tasks:
First, to enhance the modern monetary policy framework with Chinese characteristics. This is the core of the modern central bank system. We will gradually reduce the focus on quantitative targets, pay more attention to the role of price-based regulatory tools, such as interest rates, enrich the monetary policy toolbox, improve the policy communication mechanism, and increase the transparency of monetary policy.
Second, to strengthen the macro-prudential policy framework and the systemic financial risk prevention and disposal mechanism, and maintain the bottom line of preventing systemic financial risks. This is the pillar of the central bank’s role in maintaining financial security and stability.
Third, improve the financial market and financial market infrastructure system and deepen the structural reform on the supply side of finance. We will strengthen the construction of financial market systems, focus on building a standardised, transparent, open, dynamic and resilient financial market, and build an independent, controllable, safe and efficient financial market infrastructure system, which is the basis for the central bank to perform its macroeconomic regulation duties.
Fourth, to build a new open financial system at a higher level, steadily and prudently promote the internationalization of the RMB, and actively participate in global economic and financial governance and cooperation.
The PBOC will adhere to the centralised and unified leadership of the Party Central Committee over financial work, profoundly grasp the political and people-centred nature of financial work, firmly follow the path of financial development with Chinese characteristics, diligently perform its duties, and continuously promote high-quality financial development and the construction of a financially strong country.”
一是完善中国特色现代货币政策框架。这是现代中央银行制度的内核。我们将逐步淡化对数量目标的关注，更加注重发挥利率等价格型调控工具的作用，丰富货币政策工具箱，健全政策沟通机制，提高货币政策透明度。二是健全宏观审慎政策框架和系统性金融风险防范处置机制，守住不发生系统性金融风险的底线。这是中央银行维护金融安全稳定的支柱。三是健全金融市场和金融市场基础设施体系，深化金融供给侧结构性改革。强化金融市场制度建设，着力建设规范、透明、开放、有活力、有韧性的金融市场，建设自主可控、安全高效的金融市场基础设施体系，这是中央银行履行好宏观调控职责的基础。四是建设更高水平开放型金融新体制，稳慎扎实推进人民币国际化，积极参与全球经济金融治理与合作。中国人民银行将坚持党中央对金融工作的集中统一领导，深刻把握金融工作的政治性、人民性，坚定走好中国特色金融发展之路，扎实做好各项工作，持续推动金融高质量发展和金融强国建设.
The second question is: “How will monetary policy better support economic recovery and high-quality economic and social development?”
Pan says that since the beginning of this year, the PBOC has adhered to the fundamental purpose of finance serving the real economy. The prudent monetary policy has been flexible, moderate, precise and effective. In February, May and July, the Bank implemented three relatively significant monetary policy adjustments, which strongly supported the economic recovery. As of the end of July, the scale of social financing increased by 8.2% year-on-year, and RMB loans increased by 8.7% year-on-year, which was about 4 percentage points higher than the nominal GDP growth rate. The average interest rate of new loans was around 3.6%, which was at a historical low. We will continue to adhere to a supportive monetary policy stance, strengthen counter-cyclical and cross-cyclical adjustments, focus on stabilising expectations, boosting confidence, and supporting the consolidation and strengthening of the economic recovery. In the regulation of monetary policy, we will focus on grasping and handling three aspects of the relationship: first, the relationship between short-term and long-term; second, the relationship between stabilizing growth and preventing risks; and third, the relationship between internal and external factors. 潘功胜：今年以来，中国人民银行坚持金融服务实体经济的根本宗旨，稳健的货币政策灵活适度、精准有效，在2月、5月、7月先后三次实施了比较重大的货币政策调整，有力支持经济回升向好。截至7月末，社会融资规模同比增长8.2%，人民币贷款同比增长8.7%，高于名义GDP增速约4个百分点。新发放贷款利率平均为3.6%左右，处于历史低位。我们将继续坚持支持性的货币政策立场，加强逆周期和跨周期调节，着力支持稳定预期，提振信心，支持巩固和增强经济回升向好态势。在货币政策的调控中将注重把握和处理好三方面关系：一是短期与长期的关系。二是稳增长与防风险的关系。三是内部与外部的关系。
Going ahead, the PBOC will thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council.
The prudent monetary policy will be more flexible, moderate, precise, and effective.
The intensity of regulation and control will be increased
The implementation of the financial policy measures that have been issued shall be accelerated
We shall maintain reasonably ample liquidity, guide reasonable growth in monetary credit, and promote a steady decline in corporate financing and household credit costs
We shall maintain the RMB exchange rate basically stable at a reasonable and balanced level
We will enhance the effectiveness of monetary policy in promoting economic structural adjustments, transformation and upgrading, and the conversion of new and old growth drivers.
We will guide financial institutions to increase credit support for key areas and weak links, more effectively meet reasonable consumer financing needs in a targeted manner
下一步，中国人民银行将深入贯彻落实党中央、国务院决策部署，稳健的货币政策要更加灵活适度、精准有效，加大调控力度，加快已出台金融政策措施落地见效，保持流动性合理充裕，引导货币信贷合理增长，推动企业融资和居民信贷成本稳中有降，保持人民币汇率在合理均衡水平上的基本稳定。进一步提升货币政策对促进经济结构调整、转型升级、新旧动能转换的效能，引导金融机构加大对重点领域、薄弱环节的信贷支持力度，更有针对性地满足合理的消费融资需求。同时，研究储备增量政策举措，增强宏观政策协调配合，支持积极的财政政策更好发力见效，坚定不移完成全年经济社会发展目标任务。
On the issue of finance related to five key domains 五篇大文章, science and technology finance, green finance, inclusive finance, pension finance, and digital finance, Pan says:
“In the past five years, the annual average growth rates of inclusive small and micro loans, green loans, medium- and long-term loans for high-tech manufacturing, and loans for technology-based small and medium-sized enterprises in our country have all been around 20% to 30%, significantly higher than the average growth rate of all loans”. 过去5年，我国普惠小微贷款、绿色贷款、高技术制造业中长期贷款、科技型中小企业贷款年均增速都在20%—30%左右，大幅高于各项贷款平均增速.
Apart from availability of finance, he argues that financing costs have fallen. He adds that going ahead, the PBOC will strengthen collaboration with industry management departments such as those for industry and information technology, science and technology, and environmental protection. It will also focus on key areas and weak links such as major national science and technology projects and small and medium-sized technology enterprises, continuously improving the capacity, intensity, and level of financial support for technological innovation, thereby providing strong financial backing for achieving high-level self-reliance and strength in science and technology.” 下一步，中国人民银行将加强与工信、科技、环保等行业管理部门的协同合作，进一步增强金融支持的力度、可持续性和专业化水平，加强政策顶层设计，制定金融“五篇大文章”的总体方案，细化政策举措。同时，聚焦国家重大科技项目、中小科技企业等重点领域和薄弱环节，持续提升金融支持科技创新的能力、强度和水平，为实现高水平科技自立自强提供有力的金融支撑.
In the next question on opening up, Pan says that going ahead, the bank will
First, deepen the institutional opening of the financial sector, and orderly promote the high-level opening of the financial services industry and financial markets. It will also, in collaboration with financial regulatory departments, further improve the pre-establishment national treatment plus negative list system for foreign investment in the financial sector.
Second, steadily and prudently promote the internationalisation of RMB. The bank will adhere to a market-driven approach based on voluntary choice, continue to improve cross-border RMB policies, optimize the global layout of RMB clearing banks, and promote the healthy development of the offshore RMB market.
Third, continue to promote the construction of Shanghai and Hong Kong as international financial centers.
Fourth, create a more friendly and tolearant business environment. Coordinate the reform of cross-border RMB and foreign exchange management, and improve the level of cross-border trade and investment and financing facilitation. Continue to promote payment services for foreigners coming to China.
Fifth, balance financial openness and security, and actively participate in international financial governance and cooperation.
一是深化金融领域制度型开放，有序推进金融服务业和金融市场高水平开放。会同金融管理部门进一步完善金融领域外商投资准入前国民待遇加负面清单制度。二是稳慎扎实推进人民币国际化。我们将坚持以市场驱动和自主选择为基础，持续完善跨境人民币政策，优化人民币清算行全球布局，推动离岸人民币市场健康发展。三是持续推进国际金融中心建设。支持建设上海国际金融中心，巩固提升香港国际金融中心地位。四是打造更加友好包容的营商环境。统筹推进跨境人民币和外汇管理改革，提升跨境贸易和投融资便利化水平。持续推动做好外籍来华人员支付服务。五是统筹好金融开放和安全，积极参与国际金融治理与合作.
On risks, he calls to:
grasp the dynamic balance between economic growth, economic structural adjustment and financial risk prevention at the macro level.
effectively improve the effectiveness of financial supervision, strengthen regulatory coordination, and form a regulatory synergy
resolve risks in key areas such as local government debt, real estate, and small and medium-sized banks in an orderly manner
build a financial stability guarantee system that effectively prevents and controls systemic risks. Promote the acceleration of legislation related to financial stability, advance the construction of a financial stability guarantee system, and effectively prevent systemic financial risks
一是在宏观层面把握好经济增长、经济结构调整和金融风险防范之间的动态平衡。二是切实提高金融监管的有效性，加强监管协同，形成监管合力。三是有序化解地方政府债务、房地产、中小银行等重点领域风险。四是筑牢有效防控系统性风险的金融稳定保障体系。推动加快金融稳定相关立法，推进金融稳定保障体系建设，有效防范系统性金融风险.
Page 3: There’s a report on Shen Yiqin and Russian Deputy Prime Minister Tatyana Golikova co-chairing the 25th session of the China-Russia Committee on Humanities Cooperation in Moscow. Xinhua has a detailed English report, if you are interested.
Page 4: There’s a report with comments from Vice Minister of Water Resources Wang Bao’en, who said that the flood control situation in the country remains “complex and severe”. Global Times’ report informs that:
“since the start of this year's flood season, China's major rivers have experienced 25 significant flood events, the highest number recorded since data collection began in 1998.”
Of course, this will never get to the front page, because it isn’t the People’s Daily; it is the Party’s daily.