Xi's Chongqing Visit - Li Talks Poverty Alleviation in Guizhou - Wang Meets Szijjarto amid China-EU Tensions - Pushing Back on 'Overcapacity' - Liu Jianchao Meets Aspen Institute Delegation
Hi folks,
Before we get to today’s edition, I am sharing below the link to my latest article, with my colleague Amit Kumar. This was published in the Indian Express. We talked about the messages from Sergey Lavrov’s recent trip to China from an Indian perspective.
In addition, I am sharing below a recent podcast that I recorded with journalist and author Amish Mulmi on Nepal’s China policy.
Cheers,
Manoj
Here are the key reports and articles that I found noteworthy from the People's Daily’s edition on Thursday, April 25, 2024.
Page 1: The front page is dominated by the report on Xi Jinping’s visit to Chongqing. During the inspection tour, Xi was accompanied by Chongqing Party Secretary Yuan Jiajun and Mayor Hu Henghua.
First stop in the visit was the Chongqing International Logistics Hub Park and a container station. Xinhua English summarizes this bit well. “Xi said that the logistics sector makes up the arteries and veins of the real economy. He stressed that constructing the New International Land-Sea Trade Corridor will help promote the high-level opening-up of China's western and inland regions. Xi then visited a container station, where he highlighted the importance of logistics in driving the development of the western region.” The only addition from the PD report worth noting is this framing of Xi as being a man of the people. Xi engaged with truck drivers, train drivers, dockworkers, and station managers, etc., and inquired about their workload, labor rights situation, holidays, and income situation.” 随后，习近平来到重庆铁路集装箱中心站，听取货物集散、运输路径、运营成本和效益等介绍，同货车司机、列车司机、装卸工人、场站管理人员等亲切交流，询问他们的工作强度、劳动保护、节假日休息和收入情况。
Next, Xi heard a report on the construction of the Chengdu-Chongqing economic circle. He then said that “building the Chengdu-Chongqing economic circle is a major strategic decision made by the Party Central Committee. Chongqing and Sichuan should cooperate closely to continuously improve their development level…” “Pillar industries are the main front for developing new productive forces. Chongqing's manufacturing sector has its own structural characteristics and corresponding advantages. It is hoped that Chongqing will firmly grasp the crux of technological innovation, play to its strengths, address weaknesses, seize the present, plan for the future, persevere, and steadily promote the high-quality development of the manufacturing industry." 习近平表示，建设成渝地区双城经济圈是党中央作出的重大战略决策。重庆、四川两地要紧密合作，不断提升发展能级，共同唱好新时代西部“双城记”。支柱产业是发展新质生产力的主阵地。重庆的制造业有自身的结构特点、有相应的优势，希望重庆牢牢抓住科技创新这个“牛鼻子”，扬优势、补短板，抓当前、谋未来，坚定不移、久久为功，奋力推动制造业高质量发展.
Next, he visited a residential community. Xinhua English summarizes this well. “Visiting an old residential community where renovation began in early 2022, Xi learned about the renovation and neighborhood services, and talked with residents dining in the community canteen, saying the renovation of aging communities should preserve historical memories and meanwhile solve problems that concern residents. People's well-being is of utmost importance in Chinese modernization, and all the work of the CPC and the government is intended to ensure that people live happier lives, Xi said, urging Party committees and governments at all levels to invest more in improving people's livelihood to enhance their sense of fulfillment, happiness and security.”
The next day, Xi began by visiting the Chongqing Digital Operations and Governance Centre. He said that “the modernization of the governance system and governance capabilities” is key to Chinese-style modernisation. And added: To strengthen digital empowerment and promote the modernization of urban governance, we must scientifically plan and build big data platforms and network systems, strengthen synergy among all parties, and effectively improve execution capabilities. He called for improved pre-planning, precise management and swift response in handling various incidents to ensure cities operate safely and in an orderly fashion. 习近平指出，治理体系和治理能力现代化是中国式现代化的应有之义。强化数字赋能、推进城市治理现代化，要科学规划建设大数据平台和网络系统，强化联合指挥和各方协同，切实提高执行力。城市治理涉及方方面面，首要的是以“时时放心不下”的责任感，做好预案、精准管控、快速反应，有效处置各类事态，确保城市安全有序运行。希望你们不断探索，积累新的经验.
Finally on Wednesday, he heard work reports by the Chongqing Party Committee and government, and “affirmed their achievements.” 24日上午，习近平听取了重庆市委和市政府工作汇报，对重庆各项工作取得的成绩给予肯定.
“Xi said that Chongqing has a good manufacturing foundation and is rich in scientific and educational talent resources. It must strive to build a modern industrial system with advanced manufacturing as its backbone. Thoroughly implement major technological transformation and upgrading projects in the manufacturing industry and large-scale equipment renewal projects, accelerate the transformation and upgrading of traditional industries, actively cultivate strategic emerging industries with international advanced levels and competitiveness. Strengthen major scientific and technological breakthroughs, enhance the deep integration of scientific and technological innovation and industrial innovation, actively foster new formats, new models, and new momentum, and develop new quality productive forces in accordance with local conditions. Actively promote the construction of the Chengdu-Chongqing economic circle, better leverage its role as an important growth pole and new source of momentum for national high-quality development. Vigorously promote green development, build a beautiful Chongqing, and strengthen the important ecological barrier in the upper reaches of the Yangtze River.” 习近平指出，重庆制造业基础较好，科教人才资源丰富，要着力构建以先进制造业为骨干的现代化产业体系。深入实施制造业重大技术改造升级和大规模设备更新工程，加快传统产业转型升级，积极培育具有国际先进水平和竞争力的战略性新兴产业。加强重大科技攻关，强化科技创新和产业创新深度融合，积极培育新业态新模式新动能，因地制宜发展新质生产力。积极推进成渝地区双城经济圈建设，更好发挥全国高质量发展的重要增长极和新的动力源作用。大力推动绿色发展，建设美丽重庆，筑牢长江上游重要生态屏障.
“Xi Jinping emphasized that Chongqing should have the courage to be a pioneer to comprehensively deepen reforms and expand high-level opening up to the outside world. It is necessary to adhere to and implement the ‘two unwaverings’ and focus on deepening the reform of SoEs and cultivating a group of state-owned enterprises with strong core competitiveness on the one hand, and promoting the development and growth of the private economy and stimulating the vitality of various business entities on the other. Actively integrate into the construction of a unified national market, proactively integrate into and serve major national strategies, and play a greater role in promoting the joint development of the BRI, the Yangtze River Economic Belt, and the New International Land-Sea Trade Corridor. Actively align with high-standard international economic and trade rules to foster a first-class business environment that is market-oriented, law-based and internationalized.” 习近平强调，重庆要以敢为人先的勇气，全面深化改革，扩大高水平对外开放。坚持和落实“两个毫不动摇”，一手抓深化国企改革、培育一批核心竞争力强的国有企业，一手抓促进民营经济发展壮大、激发各类经营主体活力。积极融入全国统一大市场建设，主动融入和服务国家重大战略，在推动共建“一带一路”、长江经济带、西部陆海新通道联动发展中发挥更大作用。主动对接高标准国际经贸规则，营造市场化法治化国际化一流营商环境.
He then called on Chongqing to implement the “people’s city concept” 人民城市理念 and actively explore new ways to modernize the management of megacities. Xinhua English summarizes this well: “Chongqing should actively explore the modern governance of megacities, accelerating the pace of building a smart city, improving spiritual civilization, and strengthening disaster prevention, mitigation and response capacities.” He also called on the city to “vigorously promote the integrated development of urban and rural areas”. Xinhua adds that “work should be done to promote new urbanization and comprehensive rural revitalization, guarantee grain production, develop ecological agriculture, and see that no large-scale return to poverty occurs.”
In the final paragraph, Xi is quoted as calling for strengthening Party leadership, taking steps to address formalism to reduce the burden on the grassroots, carrying out Party discipline education, punishing corruption and eradicating the soil that breeds it.
The only other report on the page is one on Xi’s congratulatory letter to the first China-Latin American and Caribbean States Space Cooperation Forum. Xinhua reports:
“Xi said China and the Latin American and Caribbean countries have yielded fruitful results in space cooperation in recent years, including new progresses in the fields of remote sensing satellites, communication satellites and the deep space station network, which has played an important role in promoting scientific and technological progress, strengthening regional connectivity and improving people's wellbeing. China is ready to work with the Latin American and Caribbean countries to build a high-level space cooperation partnership, promote space technology to better benefit both peoples, and continue to promote the building of a community of China and the Latin American and Caribbean countries with a shared future, said Xi. The space cooperation forum, co-hosted by the China National Space Administration and the Hubei provincial government, started on Wednesday in Wuhan, capital of central China's Hubei Province.”
Page 3: A bunch of reports to note. First, there’s a report on Li Qiang’s comments during his visit to Guizhou. Li visited a residential community in Kaili City first. This is a resettled community, from what I gather. Li basically assessed living and employment conditions of these individuals. He “expressed his praise for the local government's active efforts in solving the housing, medical care, childcare and other worries of the relocated people and helping them integrate into their new homes.”李强来到这里，听取安置点情况汇报，走进群众家中、就业帮扶车间询问搬迁群众就业、生活等状况，对当地积极解决搬迁群众住房、就医、托幼等后顾之忧，帮助他们融入新家园表示赞许.
He added: “General Secretary Xi Jinping is very concerned about the people who have been lifted out of poverty, and has made a series of important instructions on consolidating and expanding the results of poverty alleviation. We have made arduous efforts to win the battle against poverty as scheduled, but we still need to continue to work hard to consolidate and expand the results of poverty alleviation. It is necessary to tighten the responsibilities of all parties, maintain the intensity of assistance work, maintain the intensity of assistance work, ensure that all policies are well connected and implemented, and resolutely hold the bottom line of preventing a large-scale return to poverty. By expanding local employment opportunities and strengthening employment services in other areas, we can ensure that relocated populations can settle down, find employment, and become prosperous.” 李强说，习近平总书记十分牵挂脱贫群众的生活，对巩固拓展脱贫攻坚成果作出了一系列重要指示。我们如期打赢脱贫攻坚战付出了艰苦努力，把脱贫攻坚成果巩固住拓展好还需要接续奋斗。要压紧压实各方责任，保持帮扶工作力度，把各项政策衔接好、落到位，坚决守住不发生规模性返贫底线。要通过扩大本地就业岗位和加强异地就业服务相结合，让搬迁群众稳得住、有就业、能致富.
Next, he went to an industrial demonstration park in Majiang County. There, he “affirmed the practice of relying on local resource endowments to cultivate characteristic industries and drive people to increase their incomes.” 李强充分肯定依托当地资源禀赋培育特色产业、带动群众增收的做法. Finally, the report talks about his visit to a vocational school in Taijiang County. Here, the comments focus on skill development and improving employability of people.
China-EU Tensions
After this we have foreign affairs-related reports. Let me begin this with a brief section on what have been three very interesting days in China-EU relations.
First, a couple of days ago, the UK charged two individuals for spying for China. One of these was a researcher for a Tory MP. At the same time, Germany arrested a German national on charges of being a member of the Chinese secret service. The individual was working for German far-right politician Maximilian Krah in the European Parliament. In addition, three Germans were arrested on Monday on charges of spying for China. German Chancellor Scholz called all this “very concerning”.
Soon after, reports emerged that the European Commission and local law enforcement had conducted raids at the Warsaw and Rotterdam offices of Nuctech, which manufactures baggage security scanners. FT’s report informs that Nuctech is a Chinese state-owned company once run by the son of former Chinese president Hu Jintao. The European Commission says that the raids were because of “indications that the inspected company may have received foreign subsidies that could distort the internal market. Unannounced inspections are a preliminary investigative step into suspected distortive foreign subsidies”. This is part of the EU’s new anti-foreign subsidy rules.
Following this, reports emerged that the European Commission has launched a probe into China’s public procurement of medical devices. The probe aims to determine if European suppliers of devices ranging from needles and orthopedic appliances to complex scanners have been given fair access in China. This is the latest in a series of investigations. Earlier on April 9, the EU said that it was investigating subsidies received by Chinese suppliers of wind turbines destined for Europe. In addition, Chinese solar panels imports and EV subsidies are also being investigated by the EU.
This is useful context to understand as we read the report on Wang Yi’s meeting with Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto in Beijing on Wednesday. Xinhua says:
“China appreciates Hungary’s determination to deepen cooperation with China despite interference and pressure, Wang said, adding that the fruitful and mutually beneficial cooperation between China and Hungary in various fields not only benefits the two peoples, but also strongly proves that China is an opportunity rather than a challenge, a partner rather than an opponent to Europe. Noting that Hungary will take over the rotating presidency of the European Union (EU) in the second half of this year, Wang said it is hoped that Hungary will promote the EU's rational and friendly view of China's development, pursue a more active and pragmatic policy towards China, strengthen strategic communication between China and Europe, and promote the sustained, stable and healthy development of China-EU relations. Hungary is opposed to ‘decoupling and breaking the chain’, and always believes that viewing China as a threat will only mean missing opportunities, and treating China as a partner is the right choice, Szijjarto said. Hungary is willing to promote the construction of key projects under the framework of the Belt and Road Initiative, continuously deepen the mutually beneficial cooperation between Hungary and China in various fields, push bilateral relations to a new level and promote the steady and sound development of EU-China relations, Szijjarto added.”
Moving on, there’s a report on Zhao Leji’s comments, congratulating Mexico's Senate on its 200th anniversary, calling for enhancing exchanges between the legislative bodies of the two countries. Xinhua says:
“Noting that the nature of the bilateral ties is increasingly strategic, complementary and mutually beneficial, Zhao said that China is willing to work with Mexico to improve strategic alignment, explore cooperation potential, and leverage complementary advantages to enrich the comprehensive strategic partnership between the two countries. He pointed out that the NPC has maintained friendly exchanges with Mexico's parliament, calling for the two legislative bodies to enhance multi-level exchanges in various fields, improve experience sharing in legislation and supervision, and provide legal support for mutually beneficial cooperation, thus consolidating the social and public foundation for China-Mexico friendly relations. China is willing to enhance multilateral cooperation with Mexico and other Latin American countries, and jointly advocate an equal and orderly multipolar world and an inclusive economic globalization that benefits all, Zhao said. He noted that China is committed to upholding international fairness and justice, safeguarding the legitimate rights and interests of developing countries, promoting the steady and sustained progress of China-Mexico and China-Latin America relations, and building a China-Latin America community with a shared future.”
Next, there’s a report on Wang Huning and Han Zheng, each meeting with Yerlan Koshanov, speaker of the Mazhilis, or lower house of Kazakhstan's parliament. The report says nothing substantive.
Next, there is a report on ILD chief Liu Jianchao meeting with a delegation of the Aspen Institute led by Joseph Nye, co-chair of the Aspen Strategy Group and professor emeritus at Harvard University's Kennedy School of Government, in Beijing on Tuesday. Xinhua says that the two sides exchanged in-depth views on jointly implementing the consensus reached at the San Francisco summit between the heads of state of China and the United States and promoting the steady development of bilateral relations as well as on international and regional issues of common interest. Another report talks about Liu meeting with Mohamad Hasan, deputy president of the United Malays National Organisation (UMNO) and minister of foreign affairs of Malaysia.
Finally, there’s a report with MoFA’s Wang Wenbin criticizing the G7 for their comments on the issue of overcapacity. He made three points:
First, China’s new energy sector capacity is advanced and much-needed capacity for green development, not ‘overcapacity’. According to the estimates of the International Energy Agency, based on the announced carbon neutrality targets, by 2030, global demand for new energy vehicles will reach 45 million, 4.5 times that of 2022, and global demand for new photovoltaic installations will also soar. The challenge facing the world is not overcapacity, but a severe shortage of capacity in the new energy sector. China’s green technology and products, especially the growth of our new energy industry, meet countries’ need to address the energy crisis and respond to climate change, and will make important contribution to the global green and low-carbon transition.
Second, the rapid growth of China’s new energy industry is determined by the laws of economics and market factors, not subsidies. China’s new energy products are competitive because we started out early and have kept investing in its R&D. Hence a leading edge in technology. Combined with China’s vast range of supporting industries, mega-size market and rich human resources, that leading edge becomes integrated competitiveness. As Premier Li Qiang said, China’s leading edge in new energy is a result of strong performance and full market competition, not government subsidies.
Third, accusing China’s new energy industry of overcapacity is a sign of protectionism. Bloomberg analysis shows that in the EV sector, the capacity usage rates of the majority of China’s leading auto exporters are considered normal; the ratio of exports to production is far lower than other car producing nations such as Germany, Japan, and the ROK; and Chinese companies aren’t dumping EVs on global markets, for the export prices of those cars reflect the laws of the market. In our view, the ‘overcapacity’ rhetoric is just an excuse for protectionism. To limit the export of China’s new energy products, such as electric vehicles, will make everybody lose. The world doesn’t want less of China’s capacity, but more funding and products to speed up energy transition and reduce poverty.”
Page 6: There’s a report on the launch of the Shenzhou-18 crewed spaceship, which is taking place tonight at 20:59 CST. After entering orbit, the Shenzhou-18 spaceship will perform a fast automated rendezvous and docking with the radial port of the space station core module Tianhe, which will take about 6.5 hours, forming a combination of three modules and three spacecraft. The three crew members will stay in space for 6 months.