Xi Reaches Out to EU's Costa - China & Japan Resume Ruling Parties Dialogue after 6 Years - Tibet Quake Response vs California Wildfires Bickering - 2025 Monetary Policy Approach
Here are the key reports and articles that I found noteworthy from the People’s Daily’s edition on Wednesday, January 15, 2025.
Page 1: There’s a report on Xi Jinping’s phone call with European Council President Antonio Costa. Xinhua reports:
Xi extended his congratulations once again to Costa on assuming the presidency of the European Council, noting that this year marks the 50th anniversary of China-EU diplomatic relations, an important milestone that serves as both a point of continuity and a new starting point. The history of China-EU relations demonstrates that as long as both sides uphold mutual respect, treat each other as equals, and engage in candid dialogue, they can advance cooperation and make significant achievements, Xi said. Xi said that like-mindedness makes for partnership, and seeking common ground while respecting differences also defines partnership. The key lies in respecting each other’s choice of social systems and development paths, as well as each other’s core interests and major concerns, Xi said, adding that China has always regarded Europe as an important pole in a multipolar world, firmly supported European integration, and backed the EU’s pursuit of strategic autonomy. Both sides should summarize the experiences of China-EU relations, draw important lessons, jointly safeguard the political foundation of their relations, and advance their relationship, so as to bring greater benefits to the peoples of China and Europe and contribute more stability and certainty to an increasingly turbulent international landscape.”
The report adds:
Xi Jinping stressed that China and Europe have no fundamental conflicts of interest or geopolitical contradictions, and are partners of mutual achievement. Over the past 50 years, China-EU relations have not only contributed to their respective development but also made significant contributions to global peace and prosperity, Xi said, adding that the more severe and complex the international situation becomes, the more China and Europe should adhere to the original aspirations of their diplomatic ties. Calling on both sides to strengthen strategic communication, enhance strategic mutual trust, and uphold their partnership, Xi said that China remains confident in the EU and hopes the EU will also prove to be a trustworthy cooperation partner for China.” (Note: This is quite a remarkable and rather condescending comment.)
“The economic and trade cooperation between China and the EU is mutually complementary and beneficial, with both sides serving as defenders of the multilateral trading system, Xi said, adding that the two sides have already formed a strong economic symbiotic relationship. Noting that China remains committed to high-quality development and high-level opening up, Xi said that it will bring new opportunities for China-EU cooperation. The two sides should expand mutual openness, consolidate existing cooperation mechanisms, and foster new growth points in their cooperation, Xi said. Both sides should also ensure the success of activities celebrating the 50th anniversary of diplomatic ties, enhance cultural exchanges and people-to-people interactions, encourage mutual visits between their people, and support local exchanges and educational cooperation, so as to strengthen the foundation of public goodwill in China-EU relations, Xi added.”
As per Xinhua, Costa said: “The EU is ready to properly address economic and trade differences with China through dialogue and consultation, Costa said. Both the EU and China respect the principles of the UN Charter, uphold multilateralism, safeguard free trade, and oppose bloc confrontation, and they should cooperate rather than compete.”
The two also discussed the war in Ukraine.
Costa summarised the call in a post on X.
Meanwhile, Politico reports that “the European Union is considering holding a Brussels summit with China in May in a bid to soothe ties with Beijing early in Donald Trump’s second term as U.S. president. The news comes as António Costa, who took office in December as president of the European Council, held an introductory phone call Tuesday with Chinese President Xi Jinping. The two agreed that ‘the 50th anniversary of diplomatic ties could be a good opportunity for a successful EU-China Summit later in the year,’ said an EU official, who was granted anonymity as they were not authorized to speak on the record.”
On trade issues, the report adds: “Trade relations between Brussels and Beijing remain tense, however, with the European Commission ruling on Tuesday that China’s market access rules for medical devices are unfair to EU exporters. The decision followed a nine-month probe.”
Next, there’s a report on Xi’s congratulatory message to Joseph Aoun on assuming the presidency of Lebanon. Xinhua reports:
“Xi said that he attaches great importance to the development of China-Lebanon ties and is ready to work with President Aoun to promote the friendly relations between the two countries and mutually beneficial cooperation in various fields, so as to better benefit the two peoples. China will, as always, firmly support Lebanon in safeguarding national sovereignty and territorial integrity, and continue to provide assistance within its capacity for Lebanon's economic development and improvement of people’s livelihood, Xi said.”
Third, there’s a report on Wang Huning’s meeting with a delegation of Japan’s ruling coalition, led by Secretary General Hiroshi Moriyama of the Liberal Democratic Party and Secretary General Makoto Nishida of the Komeito Party. Xinhua says:
Wang said the “ruling parties of the two countries should carry out in-depth exchanges, deliver on the common understandings between the two countries’ leaders, make joint efforts to develop bilateral relations, and promote the prosperity and development of the region and the world. ‘The CPPCC National Committee is ready to make positive contributions to this end,’ said Wang. Representatives of the Japanese delegation said that Japan and China are important neighbors of each other. They said Japan is willing to promote people-to-people exchanges at all levels, including among young parliamentarians and local leaders, in accordance with the important consensus between the two countries’ leaders and in the spirit of seeking common ground while reserving differences, in order to reduce differences and promote cooperation.”
Another report in the paper, on Page 3, discusses the delegation’s meeting with Foreign Minister Wang Yi.
Wang told the delegation that “last November, President Xi Jinping met with Prime Minister Shigeru Ishiba and reached an important consensus on comprehensively promoting the China-Japan strategic and mutually beneficial relationship and striving to build a constructive and stable China-Japan relationship that meets the requirements of the new era. At present, China-Japan relations are facing an important opportunity for improvement and development. It is hoped that both sides will make good use of the ruling party exchange mechanism platform to play a positive role in the development of China-Japan relations. The Japanese side expressed its willingness to work with the Chinese side to implement the consensus reached by the leaders of the two countries, strengthen dialogue between the ruling parties, and promote concrete results in practical cooperation in various fields.” 会见日本执政党代表团时，王毅表示，去年11月，习近平主席同石破茂首相会晤，就全面推进中日战略互惠关系、致力于构建契合新时代要求的建设性、稳定的中日关系达成重要共识。当前，中日关系面临改善发展的重要契机。希望双方用好执政党交流机制平台，为中日关系发展发挥积极作用。日方表示，愿同中方共同落实两国领导人共识，加强执政党对话，推动各领域务实合作取得具体成果.
Another report offers the official Chinese readout of the ninth meeting of the exchange mechanism between the Chinese and Japanese ruling parties. More than 60 representatives from Chinese central ministries, local governments, and Japan’s ruling coalition participated. ILD chief Liu Jianchao led this meeting from the Chinese side.
Liu said that “China was willing to work with Japan to implement the important consensus reached by the leaders of the two countries, adhere to peaceful coexistence, harmonious symbiosis, and harmony amid diversity, and promote the building of a constructive and stable China-Japan relationship that meets the requirements of the new era. The ruling parties of the two countries should strengthen dialogue and communication and take concrete actions to promote the sound and stable development of China-Japan relations.” 中共中央对外联络部部长刘建超表示，中方愿同日方共同落实好两国领导人重要共识，坚持和平共处、和合共生、和而不同，推动构建契合新时代要求的建设性、稳定的中日关系。两国执政党要加强对话沟通，以实际行动推动中日关系健康稳定发展。
Finally, there’s a report on the agreements reached during the delegation’s visit. The report says:
Both sides believe that the China-Japan ruling party exchange mechanism has played an important political guiding role in promoting the development of China-Japan relations since its first meeting in 2006, and welcomed the resumption of the inter-party talks after a period of 6 years and 3 months. Focusing on the mission and responsibilities of ruling parties, both sides engaged in candid discussions on the important responsibilities and roles that the two countries should assume to maintain international order based on international law amid global upheavals. The two sides had in-depth discussions and candidly exchanged views on enhancing mutual trust, expanding cultural exchanges and deepening mutually beneficial cooperation.
The two sides agreed to follow the direction indicated by the leaders of the two countries, principles established in the four China-Japan political documents, work together to comprehensively promote the China-Japan strategic, mutually beneficial relations, and build a constructive and stable China-Japan relationship that meets the requirements of the new era. To this end, the ruling parties of the two countries will continue to strengthen dialogue.
The two sides agreed that no matter what situation China-Japan relations face, they must maintain close dialogue and communication, strengthen exchanges between the two countries’ political parties, political leaders and young politicians, enhance mutual understanding and trust, and lay a solid political foundation for improving and developing China-Japan relations and building a constructive and stable China-Japan relationship.
The two sides exchanged views on issues such as the discharge of Fukushima nuclear contaminated water into the sea and the import of Japanese aquatic products, and agreed to promote the implementation of the consensus reached by the two governments, accelerate communication and consultations, and properly handle each other’s concerns.
The two sides confirmed that they will continue to promote practical cooperation between the two countries through exchanges between the ruling parties, and agreed in principle to hold the 10th meeting of the China-Japan ruling party exchange mechanism in Japan this autumn.
双方认为，中日执政党交流机制2006年举行首次会议以来为推动中日关系发展发挥了重要政治引领作用，欢迎该机制会议时隔6年3个月重启并再次举行。双方围绕“大变局下中日关系——执政党的使命和担当”这一会议主题，就世界动荡变革背景下中日两国为维护以国际法为基础的国际秩序应当承担的重要责任和发挥的作用进行了坦诚交流。双方就增进相互信任、扩大人文交流、深化互利合作进行深入讨论，坦率交换了意见。双方同意按照两国领导人指明的方向，坚持中日四个政治文件确立的各项原则，共同努力全面推进中日战略互惠关系，构建契合新时代要求的建设性、稳定的中日关系。为此，两国执政党将继续加强对话。双方确认无论中日关系面临何种局面，都要保持密切对话沟通，加强两国政党、政要及青年政治家交往，增进相互理解和信任，为改善发展中日关系，构建建设性、稳定的中日关系夯实政治基础。双方围绕福岛核污染水排海和日本水产品进口等问题交换了意见，同意推动落实两国政府达成的共识，加速沟通和磋商，妥善处理各自关切。双方确认继续通过执政党交流推动两国务实合作取得成果，原则同意今年秋天在日本举行中日执政党交流机制第十次会议。
Back to the front page, there’s a report informing that China implemented 46,967 water conservancy projects in 2024, with a total investment of 1.35 trillion yuan. The effort created 3.147 million jobs.
Finally, there’s a long feature talking about the earthquake rescue and relief work that has been carried out in Tibet. It says that “at present, the earthquake relief work is at a critical stage. All parties are working tirelessly to win the tough battle…”
The piece offers an official relay of events in terms of the state’s response. So “after the earthquake, General Secretary Xi Jinping attached great importance to it and issued important instructions … In accordance with General Secretary Xi Jinping’s instructions and the request of Premier Li Qiang, Politburo member and Vice Premier Zhang Guoqing led relevant department officials on January 7 to the earthquake-stricken area in Shigatse, Tibet, to guide emergency rescue and response efforts on site. The safety and well-being of the affected people has always been close to the General Secretary’s heart. On January 9, Xi Jinping presided over a meeting of the Politburo Standing Committee to discuss and plan the earthquake relief efforts in Dingri, Tibet. The meeting emphasised the need to handle the work with even greater precision and to resolutely win the tough battle of earthquake relief.” 地震发生后，习近平总书记高度重视并作出重要指示，强调“要全力开展人员搜救，全力救治受伤人员”“妥善安置受灾群众，做好善后等工作”“安排好群众基本生活，确保安全温暖过冬”。根据习近平总书记重要指示和李强总理要求，中共中央政治局委员、国务院副总理张国清于7日率有关部门负责同志赶赴西藏日喀则地震灾区现场指导应急救援处置工作。受灾群众的安危冷暖，总书记时刻牵挂在心。9日，习近平总书记主持中共中央政治局常务委员会会议，研究部署西藏定日抗震救灾工作。会议强调，要把工作做得更细一些，坚决打赢抗震救灾这场硬仗.
The next bit in this section of the article essentially and rather emphatically talks about the Party’s flag flying high at the forefront of the earthquake relief effort. There’s no useful information, just charged rhetoric. For instance, “‘Be together with the masses’, this is the solemn promise of Communist Party members when faced with a disaster”. “和群众在一起”，这是共产党员面对灾难时的庄严承诺.
The next section is even more dramatic, with rescuers, with blistered hands, pulling people out of the rubble; doctors and volunteers working long hours with bloodshot eyes, etc. It also informs that “less than two days after the earthquake, a total of more than 12,000 rescue forces from various parties rushed to the scene and rescued 407 trapped people.”
Another relevant data point is that as of 18:00 on January 12, a total of 2,198 prefabricated houses had been built to relocate people…166,200 blankets, 40,737 stoves for heating, and 118,000 sets of clothing had been provided.
So whom should we thank for all this? “‘The smooth progress of earthquake relief work fully demonstrates the wise leadership of the Party Central Committee with Comrade Xi Jinping as the core, fully displays the magnificent scene of Chinese nation’s unity as one family, watching out for and helping each other, and fully reflects the remarkable superiority of the socialist system and the incomparable warmth of the motherland’s big family’, said Wang Junzheng, Secretary of the Tibet Autonomous Region Party Committee.” “抗震救灾工作的顺利推进，充分彰显了以习近平同志为核心的党中央的英明领导，充分展现了中华民族一家亲、守望相助的团结盛景，充分体现了社会主义制度的显著优越性和祖国大家庭的无比温暖。”西藏自治区党委书记王君正说.
The next section has some details on response times and processes.
Note: This is really important not just in itself — i.e., to understand the approach and mobilisation during a disaster — but also from a propaganda point of view. One cannot help juxtaposing this narrative from China with the political bickering that has taken place in the US in the past few months around natural disasters, be it with the storms before the election or the fires in California. Now, that said, this article does not mention the US or draw that comparison directly. But Chinese media has prominently covered the political back and forth in the US over the LA fires. For instance, this Xinhua report says that while wildfires rage, American politicians are busy spitting at each other/exchanging verbal attacks (喷 口水互相指责). Ta Kung Pao’s coverage talks about officials shirking responsibility. Also checkout this VOA report discussing Chinese media and social media comments on the California wildfires. It discusses the different approaches of Chinese media when covering the two natural disasters in California and Tibet.
Anyway, the PD article says that:
“On the morning of the 7th, just after 9 a.m., an earthquake alarm sounded at the National Emergency Command Center, and within 30 seconds, the internal response mechanism was activated…
The heads of the Ministry of Emergency Management and other departments remotely connected with the local emergency command and rescue teams in the Tibet Autonomous Region. The emergency mechanism was launched immediately. The State Council’s Earthquake Relief Headquarters set up a working group to strengthen overall coordination, bringing together various departments to fully carry out disaster relief efforts. The coordinated ‘game of chess’ approach was clear, highlighting the advantages of the emergency management system with Chinese characteristics…
Within 10 minutes of the earthquake, rescue aircraft had already flown over the disaster area; in less than 30 minutes, rescue teams began breaking through debris at the epicenter, the olive green, fire rescue orange, and emergency blue—various units entered the disaster-stricken area in an orderly manner and began their work. The effectiveness of China’s emergency rescue system was immediately evident. Within a single day, local communication, networks, roads, and power supplies were gradually restored, and the affected residents were housed in emergency tents, enjoying hot meals three times a day…
Emergency disaster relief supplies from the central government were immediately dispatched!On the evening of the 7th, the Ministry of Finance and the Ministry of Emergency Management allocated 100 million yuan of central natural disaster relief funds, and the first batch of central disaster relief materials arrived in the disaster area…
Whatever Tibet lacked, the central government allocated. On the evening of the 11th, the Tibet Autonomous Region requested the State Council’s Earthquake Relief Headquarters for an additional 2,000 prefabricated shelters. By the morning of the 12th, the emergency management departments of Sichuan and Gansu provinces had begun organizing shipments…
As of now, the Ministry of Natural Resources has completed 3,841 emergency inspections of geological hazard risks; the National Energy Administration has completed emergency power connections for 278 resettlement sites; and the National Health Commission and the National Administration of Traditional Chinese Medicine continue to develop treatment plans for the injured on a ‘one person, one policy’ basis. ‘Earthquake relief measures the leadership capacity of the ruling party, tests the government’s execution ability, evaluates national mobilization capacity, and demonstrates national cohesion. The superiority of our socialist system is most evident in handling urgent, difficult, and critical challenges,’ said Ma Liang, a professor at Peking University’s School of Government.”
7日上午，9点刚过，国家应急指挥中心响起地震警报，半分钟内，指挥中心内部响应机制启动。“目前情况如何？”“已启动响应，震中震感比较强烈，可能会有人员伤亡，正在调度。”应急管理部等部门负责人与西藏自治区当地应急指挥和救援队伍远程连线调度。应急机制第一时间启动。国务院抗震救灾指挥部工作组成立，加强统筹协调，推动各部门形成合力，全力做好救灾救助工作。“一盘棋”大局分明，中国特色应急管理体制优势尽显无遗。——救援快速有序。震后10分钟，救援飞机就已飞抵灾区上空；不到半小时，地震中心区域就开始破拆救援，橄榄绿、消防橙、应急蓝……各单位有序进驻受灾地区，开展工作。中国特色应急救援力量体系作用立竿见影。不到一天，当地通信、网络、道路、供电逐渐恢复，受灾群众基本住进应急帐篷，吃上热气腾腾的一日三餐。——物资运转高效。紧急调拨中央救灾物资！7日晚，财政部、应急管理部预拨1亿元中央自然灾害救灾资金，首批中央救灾物资运抵灾区……西藏缺什么，国家拨什么。11日晚，西藏自治区政府向国务院抗震救灾指挥部工作组请求增加支援板房2000套；12日一早，四川省、甘肃省应急管理厅就已开始组织装运。——重建平稳细致。“我们将请住房城乡建设部跨省协调，再增加200名房屋建筑专家，加快房屋应急评估工作。”10日中午，国务院抗震救灾指挥部根据地方需求，加强协调帮助，落实具体安排。截至目前，自然资源部完成3841处地质灾害隐患应急排查；国家能源局完成278个安置点的应急接电工作；国家卫生健康委、国家中医药局持续对伤员“一人一策”制定诊疗方案……“抗震救灾，衡量的是执政党领导力、检验的是政府执行力、评判的是国家动员力、体现的是民族凝聚力。我们社会主义制度优越性，很重要的一个表现就在急难险重时。”北京大学政府管理学院教授马亮说.
Page 2: There’s an article covering the remarks of Xuan Changneng, Deputy Governor of the People's Bank of China, and Li Bin, Deputy Director of the State Administration of Foreign Exchange, discussing monetary policy.
Xuan offered some 2024 data:
As of the end of December, the scale of social financing increased by 8.0% year-on-year, M2 increased by 7.3% year-on-year, and the RMB loans increased by 7.6% year-on-year, all of which were higher than the nominal economic growth rate.
Interest rates have fallen. In December, the interest rate of newly issued corporate loans was about 3.43%, a year-on-year decrease of 0.36 percentage points, and the interest rate of personal housing loans was about 3.11%, a year-on-year decrease of 0.88 percentage points.
The credit structure has been continuously optimized, with medium- and long-term loans in the manufacturing industry increasing by 11.9% year-on-year, loans to little new and specialised enterprises (专精特新) increasing by 13.0% year-on-year, and inclusive small and micro loans increasing by 14.6% year-on-year. This has remained higher than the growth rate of all loans in the same period.
数据显示，2024年，我国金融总量合理增长，截至12月末，社会融资规模同比增长8.0%，广义货币（M2）同比增长7.3%，人民币贷款同比增长7.6%，都高于名义经济增速。贷款利率稳步下行，12月份，新发放企业贷款利率约为3.43%，同比下降0.36个百分点，个人住房贷款利率约为3.11%，同比下降0.88个百分点。信贷结构不断优化，制造业中长期贷款同比增长11.9%，专精特新企业贷款同比增长13.0%，普惠小微贷款同比增长14.6%，继续高于同期全部贷款增速.
Xuan said that the PBOC will implement “a moderately loose monetary policy in 2025.” He added that “in the next stage, macroeconomic policies will further strengthen counter-cyclical adjustments. The People’s Bank of China will adjust and optimize policy intensity and rhythm according to the domestic and international economic and financial situation and the operation of financial markets, and support the realization of the annual economic and social development goals. It will comprehensively use a variety of monetary policy tools such as interest rates and deposit reserve ratios to maintain ample liquidity and ensure a loose social financing environment. It will strengthen the implementation of interest rate policies and further reduce the overall financing costs of society on the basis of maintaining healthy financial operations. It will scientifically use structural monetary policy tools and give full play to the dual functions of monetary policy tools in terms of total volume and structure. It will continue to take comprehensive measures to keep the RMB exchange rate basically stable at a reasonable and balanced level.” “人民银行2025年将落实好适度宽松的货币政策。”宣昌能介绍，下阶段，宏观经济政策将进一步强化逆周期调节，人民银行将根据国内外经济金融形势和金融市场运行情况，择机调整优化政策力度和节奏，支持实现全年经济社会发展目标。综合运用利率、存款准备金率等多种货币政策工具，保持流动性充裕，保证宽松的社会融资环境。强化利率政策执行，在保持金融业健康经营基础上，进一步降低社会综合融资成本。科学运用好结构性货币政策工具，发挥好货币政策工具的总量和结构双重功能。继续综合采取措施，保持人民币汇率在合理均衡水平上基本稳定.
Li Bin then shared some data:
In 2024, the total foreign-related receipts and payments of non-bank sectors such as enterprises and individuals reached $14.3 trillion, an increase of 14.6% over 2023, a record high. The domestic RMB foreign exchange market transaction volume exceeded $41 trillion, an increase of 14.8% over 2023.
The current account surplus in the first three quarters of 2024 was $241.3 billion, which is 1.8% of China’s GDP, i.e., in the internationally recognized equilibrium range. Preliminary estimates show that the current account maintained a reasonable surplus in the fourth quarter
At the end of September 2024, the stock of foreign assets exceeded $10 trillion for the first time. Funds such as direct investment capital and securities investment in China maintained net inflows.
Forex reserves were more than $3.2 trillion
2024年，我国跨境贸易投资更加活跃，企业、个人等非银行部门涉外收支总额14.3万亿美元，较2023年增长14.6%，规模创历史新高，境内人民币外汇市场交易量超过41万亿美元，较2023年增长14.8%；国际收支保持基本平衡，2024年前三季度经常账户顺差2413亿美元，与我国国内生产总值（GDP）比值为1.8%，处于国际公认的均衡区间，初步测算四季度经常账户仍保持合理顺差；对外投资较快增长，2024年9月末对外资产存量首次超过10万亿美元，来华直接投资资本金、来华证券投资等资金保持净流入。外汇储备余额稳定在3.2万亿美元以上，人民币汇率在合理均衡水平上保持基本稳定.
Going forward, “Li Bin said that the State Administration of Foreign Exchange will better coordinate development and security, implement more proactive and effective foreign exchange management policies, and help promote high-quality economic development and high-level opening up.” 李斌表示，国家外汇管理局将更好统筹发展和安全，实施更加积极有为的外汇管理政策，助力经济高质量发展和高水平开放.
Xuan added: “We will continue to take comprehensive measures to enhance the resilience of the foreign exchange market, stabilize market expectations, strengthen market management, resolutely correct pro-cyclical behaviour in the market, resolutely address actions that disrupt market order, resolutely prevent the risk of excessive exchange rate adjustments, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.” 针对社会关心的汇率问题，宣昌能表示：“我们将继续综合采取措施，增强外汇市场韧性，稳定市场预期，加强市场管理，坚决对市场顺周期行为进行纠偏，坚决对扰乱市场秩序行为进行处置，坚决防范汇率超调风险，保持人民币汇率在合理均衡水平上的基本稳定.”
Finally, Zou Lan from the PBOC’s Monetary Policy department said that going forward, the focus of policy would remain on “science and technology finance, green finance, inclusive finance, pension finance, and digital finance.”