Zhong Sheng Commentary: China-US London Framework 'Hard-Won'; Bilateral Deals Must not Harm China's Interests
Also in this edition: Xi in Shanxi; Li's BRICS Pitch; and China marks Marco Polo Bridge Incident Anniversary
Here are the key reports and articles that I found noteworthy from the People’s Daily’s edition on Tuesday, July 8, 2025.
Page 1: Let’s begin with something that’s not in the paper today, but will likely dominate the front page in the coming days. Xi Jinping is visiting Shanxi, where he traveled to Yangquan to pay tribute at the monument square honoring the martyrs of the Hundred-Regiment Campaign during the war against Japanese aggression. Xinhua reports:
“Xi laid a floral basket to pay tribute to the martyrs, and then visited the memorial hall commemorating this major campaign. During the visit, Xi reviewed the history of the CPC leading both the military and civilians in the courageous fight against Japanese invaders, and learned about local efforts to carry out revolutionary history education and promote the great spirit of resisting aggression.”
While in Yangquan, he also visited a valve manufacturing company.
Anyway, today, the top reports in the paper are feature pieces on manufacturing advancement during the 14th FYP and transfer of officials to Tibet and Qinghai as part of planned “assistance” initiatives. It is below these that we get a brief report about Li Qiang’s speech at the BRICS summit.
The Tibet piece says that “since July 2022, 2,117 members of the 10th batch of aid-to-Tibet officials and talents, and 441 members of the 5th batch of aid-to-Qinghai officials and talents from paired assistance provinces and cities, central Party and state departments and mass organizations, and central enterprises have entered Tibet and Qinghai to carry out their work.” 按照党中央决策部署，自2022年7月起，来自对口支援省市、中央和国家机关部委及人民团体、中央企业的2117名第十批援藏干部人才、441名第五批援青干部人才进藏进青工作.
The manufacturing article says:
“In recent years, a modern industrial system with advanced manufacturing as the backbone has accelerated its construction, new-type industrialization has taken new solid steps, and manufacturing power construction has achieved new progress. China’s total industrial added value for the whole year has grown from 31.3 trillion yuan in 2020 to 40.5 trillion yuan in 2024. The overall scale of manufacturing has ranked first in the world for 15 consecutive years. The solid confidence, innovative momentum, and surging vitality demonstrated by Made in China provide strong support for advancing Chinese-style modernisation.” 近年来，以先进制造业为骨干的现代化产业体系加快构建，新型工业化迈出新的坚实步伐，制造强国建设取得新进展。我国全年全部工业增加值由2020年的31.3万亿元增长至2024年的40.5万亿元，制造业总体规模连续15年保持世界第一。中国制造彰显出的坚实底气、创新动能、澎湃活力，为推进中国式现代化提供有力支撑.
It adds that:
Today, BeiDou system chips, terminals, and services have achieved 100% domestic production and have become a major new-type infrastructure providing global users with all-weather, all-time, high-precision positioning, navigation, and timing services. 从无到有，服务全球。如今北斗系统芯片、终端、服务实现100%国产化，已成为向全球用户提供全天候、全天时、高精度定位、导航与授时服务的重要新型基础设施.
Domestically produced high-rigidity, high-precision, high-reliability 500-kilogram load heavy industrial robots have been successfully developed; 28-nanometer lithography machines have completed production line verification, with domestic substitution rate breaking through 83%... The added value of high-tech manufacturing in our country increased from 15.1% of above-scale industries in 2020 to 15.7% in the first quarter of this year. Innovation, this ‘key variable’, is accelerating its transformation into the ‘largest increment’ of new quality productive forces. 科技创新与产业创新深度融合，推动关键核心技术不断取得突破。国产高刚度、高精度、高可靠性负载500公斤重型工业机器人研发成功；28纳米光刻机完成产线验证，国产化率突破83%……我国高技术制造业增加值占规上工业的比重从2020年的15.1%提高到今年一季度的15.7%。创新这一“关键变量”，加速转化为新质生产力的“最大增量”.
The transformation of traditional industries has achieved remarkable results. 171 enterprises in the steel industry have completed or partially completed ultra-low emission transformation and assessment monitoring; the R&D investment intensity of the top 100 light industry technology enterprises reached 2.82%, and the number of invention patents has exceeded 190,000…In May this year, the value-added of industries such as electric motor manufacturing, shipbuilding and related equipment manufacturing, and boiler and prime mover equipment manufacturing increased year-on-year by 23.3%, 12.8%, and 11.8%, respectively. Targeting ‘renewal’ and ‘innovation’, traditional industries have achieved ‘old trees sprouting new buds’. 传统产业改造成效显著。钢铁行业有171家企业完成或部分完成了超低排放改造和评估监测；轻工科技百强企业研发投入强度达2.82%，发明专利数量累计超过19万件……今年5月，全国电机制造、船舶及相关装置制造、锅炉及原动设备制造等行业增加值同比分别增长23.3%、12.8%、11.8%，瞄准“更新”与“创新”，传统产业实现“老树发新芽”。
Currently, China is home to 41 major industrial categories, 207 medium industrial categories, and 666 small industrial categories. It is the only country that has all the industrial categories in the United Nations industrial classification; among the 500 major industrial products, more than 40% of the products rank first in the world in terms of output. 当前，我国拥有41个工业大类、207个工业中类、666个工业小类，是唯一拥有联合国产业分类中全部工业门类的国家；500种主要工业产品中，四成以上产品产量位居全球第一.
Currently, China has cultivated a total of 421 national-level smart manufacturing demonstration factories, built more than 10,000 provincial-level digital workshops and smart factories, and promoted the digital transformation of nearly 10,000 small and medium-sized enterprises. 当前全国已累计培育421家国家级智能制造示范工厂，建成万余家省级数字化车间和智能工厂，推进近万家中小企业数字化改造.
As of 2024, there were 6,430 national-level green factories in China; their output value accounted for about 20% of the total output value of the manufacturing industry. 截至2024年底，我国国家级绿色工厂达6430家，实现产值占制造业总产值比重约20%.
Okay, now let’s get to the report on Li Qiang’s remarks at the BRICS Summit delivered during a plenary themed Peace and Security and Reform of Global Governance.
In his remarks, Li praised Xi’s “global governance vision of extensive consultation and joint contribution for shared benefit.” He said that “the conflicts and disputes happening across the globe have their roots in the lack of trust and communication. Power politics and bullying are never the right way to solve problems. The security and development of all countries should be respected. There should be less arrogance and prejudice, and more sincerity and understanding. We need to look for the best answer that serves the interests of all through friendly consultation conducted on the basis of equality.”
Li added: “Over the years, Global South countries have grown stronger and become champions of and contributors to the reform and improvement of the global governance system. Standing at the forefront of the Global South, we BRICS countries should uphold independence, act with a sense of responsibility, take bigger steps to build consensus and synergy, and strive to be the pioneering force in advancing global governance reform.”
Li then made three points:
First, we should uphold justice and safeguard world peace and tranquility. Achieving fairness and justice is a persistent pursuit of BRICS countries and an important theme of BRICS cooperation. When international rules are being undermined and bullying practices are on the rise, we need to stand up for what is right and speak up for justice. We need to act as a positive and stable force for good in the world, promote dispute settlement by peaceful means, and seek solutions that address the root causes based on the true merits of issues.
Second, we should focus on development and bolster the driving forces of economic growth. China’s journey of reform and opening up shows that in solving all problems, development is the foundation and key. It is true to big developing countries like China. It is also true to other countries of the Global South and beyond. With notable advantages in market, resources, industries and other factors, BRICS countries should play an active part in spearheading development cooperation, unlock the growth potential in emerging areas, and continue to explore new space for mutually beneficial cooperation. This year, China will establish the China-BRICS New Quality Productive Forces Research Center and the BRICS New Industry Golden Egret Excellence Scholarships, which will help BRICS countries train talents in areas such as industry and telecommunication, and pursue innovation-driven development.
Third, we should uphold inclusiveness and promote exchange and mutual learning among civilizations. Dialogue between civilizations can build bridges for peace and friendship and inspire wisdom for common development. With rich histories and cultures, BRICS countries should be advocates of harmonious coexistence of civilizations. We need to call for respect for cultural diversity in the world, and work to ensure that different civilizations inspire each other and prosper together.
Next, there’s a report on the paper on Cai Qi addressing a ceremony in Beijing to mark the “88th anniversary of the start of the entire nation’s resistance against Japanese aggression. An exhibition themed ‘For National Liberation and World Peace’ was also launched to commemorate the 80th anniversary of the victory in the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War.”
“Cai Qi pointed out that 88 years ago today, Japanese militarism deliberately led to the Marco Polo Bridge Incident (Lugou Bridge Incident), which shocked China and the world, and brazenly launched a full-scale war of aggression against China. The Chinese military and civilians rose up to resist, the national war of resistance broke out, and opened up the main battlefield of the world anti-fascist war in the East. The Communist Party of China bravely fought at the forefront of the War of Resistance Against Japanese Aggression, led the direction of China’s war of resistance, and became the mainstay of the national war of resistance. All Chinese people fought one after another and worked together to fight for national survival, national rejuvenation, and human justice, winning the great victory of the Chinese People’s War of Resistance Against Japanese Aggression and making significant contributions to the victory of the World Anti-Fascist War. On the occasion of the 80th anniversary of the victory of the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War, the theme exhibition ‘For National Liberation and World Peace’ was launched, which comprehensively displayed the glorious course of the Chinese people’s 14 years of arduous resistance, and provided an important platform for patriotic education and revolutionary traditional education.” 蔡奇在讲话中指出，88年前的今天，日本军国主义蓄意制造震惊中外的卢沟桥事变，悍然发动全面侵华战争。中国军民奋起抵抗，全民族抗战爆发，并开辟了世界反法西斯战争的东方主战场。中国共产党勇敢战斗在抗日战争最前线，引领中国抗战的前进方向，成为全民族抗战的中流砥柱，全体中华儿女前赴后继、勠力同心，为国家生存而战、为民族复兴而战、为人类正义而战，赢得了中国人民抗日战争的伟大胜利，为世界反法西斯战争胜利作出了重大贡献。在中国人民抗日战争暨世界反法西斯战争胜利80周年之际，推出《为了民族解放与世界和平》主题展览，全景式展现中国人民14年艰苦抗战的光辉历程，为开展爱国主义教育和革命传统教育提供了重要平台. (Note: The narrative of the CPC’s leadership of the fight against the Japanese is, of course, inaccurate. Rana Mitter’s China’s Good War is a great resource for anyone who is interested in the subject.)
“Cai Qi said that on the new journey, it is essential to thoroughly study and implement General Secretary Xi Jinping’s important expositions on the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War, and vigorously promote the great spirit of the War of Resistance. We must unswervingly adhere to the leadership of the Communist Party of China, deeply understand the decisive significance of the ‘Two Establishments’, and resolutely implement the ‘two safeguards’; unswervingly promote Chinese-style modernisation, carry forward the spirit of struggle, and forge ahead with determination; unswervingly strengthen the great unity of all sons and daughters of the Chinese nation, and work hand in hand to create a bright future for national rejuvenation; and unswervingly uphold the cause of peace and justice for humanity, and promote the building of a community with a shared future for mankind. We must unite more closely around the Party Central Committee with Comrade Xi Jinping as the core, fully implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, strengthen our confidence and move forward courageously, strive to comprehensively promote the construction of a strong country and the great cause of national rejuvenation with Chinese-style modernisation, and make new and greater contributions to the noble cause of human peace and development.” 蔡奇说，新征程上，要深入学习贯彻习近平总书记关于中国人民抗日战争和世界反法西斯战争的重要论述，大力弘扬伟大抗战精神。要坚定不移坚持中国共产党领导，深刻领悟“两个确立”的决定性意义、坚决做到“两个维护”；坚定不移推进中国式现代化，发扬斗争精神、锐意开拓进取；坚定不移加强中华儿女大团结，携手创造民族复兴美好未来；坚定不移维护人类和平正义事业，推动构建人类命运共同体。要更加紧密地团结在以习近平同志为核心的党中央周围，全面贯彻习近平新时代中国特色社会主义思想，坚定信心、勇毅前行，为以中国式现代化全面推进强国建设、民族复兴伟业而努力奋斗，为人类和平与发展的崇高事业作出新的更大贡献.
Worth noting the attendees who were present:
Wang Yi, Li Shulei, Zhang Youxia, Wang Xiaohong, Zhang Qingwei, Wu Zhenglong, Wang Yong and Liu Zhenli. Beijing Party Secretary Yin Li presided over the meeting. 王毅、李书磊、张又侠、王小洪、张庆伟、吴政隆、王勇和刘振立出席。尹力主持.
Page 2: There’s a report on Li Qiang’s meeting with Ethiopian Prime Minister Abiy Ahmed. Xinhua says:
“Li said Chinese President Xi Jinping sent a congratulatory letter to the Ministerial Meeting of Coordinators on the Implementation of the Follow-up Actions of the Forum on China-Africa Cooperation (FOCAC) in June, announcing new important measures such as implementing the zero-tariff treatment for 100 percent tariff lines for 53 African countries which have diplomatic relations with China. Li said China will take the new measures as opportunities to work with Ethiopia to fully deliver the outcomes of the Beijing Summit of the FOCAC. The Chinese premier called for deepening bilateral all-around cooperation and making bilateral relations a model for building the all-weather China-Africa community with a shared future for the new era. China will, as always, support Ethiopia in independently exploring a development path suited to its national conditions, work with Ethiopia to deepen cooperation in infrastructure, new energy vehicles, green industries, e-commerce and artificial intelligence, and intensify exchanges in tourism, youth, education and other fields, Li said. Noting that both China and Ethiopia are important Global South countries, Li said China will join hands with Ethiopia to strengthen communication and coordination within multilateral frameworks like the United Nations and BRICS, boost concerted efforts by all parties to practice true multilateralism, firmly safeguard economic globalization and free trade, and inject more stability and positive energy into the world.”
Li also said that “China stands ready to work with Ethiopia to promote the sustainable development of the Addis Ababa-Djibouti Railway, a flagship project of the high-quality Belt and Road cooperation, and expand bilateral trade and investment.”
Another report on the page talks about the PLA units stationed in Djibouti participating in the 50th independence day parade of Comoros.
Page 17: There’s a Zhong Sheng commentary on the page discussing China-US trade ties.
My take: Actually, this is about much more than China-US ties. The article basically serves as a warning to other countries that might be looking to cut bilateral deals with the US. The narrative is quite remarkable. It goes something like this:
China is a major power like the US. So for Beijing and Washington to talk and arrive at some sort of a consensus or framework is a great outcome for themselves and the world. It injects “positive factors into the development of both countries and the world economy.” Now, all countries are equal. So, of course, others can talk to the US bilaterally and figure out things. But if you cut deals that somehow adversely affect China, then you will not just face Beijing’s wrath, but you are also undermining the WTO-centered international trading order. In addition, the author puts out this warning, underscoring the unreliability of the US. “No one can be immune to the impact of unilateralism and protectionism. Once the bottom line of principles is breached, blackmail will intensify, all countries will become victims, and the institutional environment for global development may suffer irreversible damage”. Essentially, the argument is that if you cut Beijing out as part of a deal with Washington, not only will you alienate China but can you still be confident that the Trump administration will stand with you?
The article also comes at an interesting moment. Earlier this month, the US and Vietnam announced a deal. Under this, the US “would tariff Vietnamese exports to the U.S. at a 20% rate, as opposed to the initial 46% ‘reciprocal’ tariff. Goods deemed to be transshipped, however, will be tariffed at a 40% rate in a measure indirectly targeting China, which has rerouted products through Vietnam to get around past U.S. import duties. In exchange, Vietnam agreed to having no tariffs on U.S. imports, Trump said.” Reportedly, Trump is also going to extend the larger reciprocal tariffs deadline to August 1, 2025. In addition, there are 14 countries on which he has announced revised tariffs.
Anyway, let’s look at the article.
It says that since the London talks, “the two sides have stepped up the implementation of the relevant outcomes of the London Framework, made positive progress on some issues, and sent positive signals to the outside world. This fully demonstrates that as long as China and the US persist in resolving differences through equal dialogue and consultation, continuously enhance consensus, reduce misunderstandings, and strengthen cooperation, they can find appropriate ways to resolve disputes and inject more positive factors into the development of both countries and the world economy.” 中美伦敦经贸会谈举行以来，双方加紧落实伦敦框架有关成果，在一些问题上取得了积极进展，对外释放了积极信号。这充分说明，只要中美双方坚持通过平等对话协商解决分歧，不断增进共识、减少误解、加强合作，就能找到妥善解决争端的办法，就能为两国各自发展和世界经济发展注入更多积极因素.
During the China-US London Economic and Trade Talks, the two sides reached an in-principle consensus on the framework of measures to implement the important consensus reached by the two heads of state on June 5 and consolidate the results of the Geneva Economic and Trade Talks. After the talks, the teams of both sides maintained close communication. With approval, the two sides further confirmed the details of the framework. In order to implement the relevant outcomes of the London Framework, China is approving qualified applications for export licenses for controlled items in accordance with laws and regulations. The United States has also taken corresponding actions to cancel a series of restrictive measures taken against China. This series of progress has triggered positive responses from all walks of life in both countries and the international community, and has enhanced the confidence of all parties in China and the US to resolve economic and trade differences through equal dialogue and consultation. 中美伦敦经贸会谈中，双方就落实两国元首6月5日通话重要共识和巩固日内瓦经贸会谈成果的措施框架达成原则一致。会谈后，双方团队保持着密切沟通。经批准，双方进一步确认了框架细节。为落实伦敦框架有关成果，中方正依法依规审批符合条件的管制物项出口许可申请。美方也采取相应行动，取消对华采取的一系列限制性措施。这一系列进展在两国各界和国际社会都引发了积极反响，增强了各方对中美以平等对话协商解决经贸分歧的信心.
It adds:
The London Framework is hard-won. Both sides must implement the relevant consensus and continuously accumulate conditions for the final resolution of the dispute. China is determined to safeguard its rights and interests and implement the consensus in good faith. The US should deeply understand the mutually beneficial and win-win nature of Sino-US economic and trade relations, further correct its wrong practices, continue to meet China halfway, fully leverage the role of the Sino-US economic and trade consultation mechanism, safeguard and implement the important consensus reached by the two heads of state through practical actions, and jointly promote the steady and long-term development of Sino-US economic and trade relations. 伦敦框架来之不易，双方要将有关共识落到实处，为最终解决争端不断积累条件。中方维护权益是坚定的，落实共识是诚信的。美方应深刻认识中美经贸关系互利共赢的本质，进一步纠正错误做法，继续同中方相向而行，充分发挥好中美经贸磋商机制作用，以实际行动维护和落实好两国元首通话重要共识，共同推动中美经贸关系行稳致远.
Recently, as the US side’s ‘final deadline’ for imposing so-called ‘reciprocal tariffs’ approaches, all parties’ concerns about new trade and economic frictions have further escalated. It must be pointed out that the US side’s abuse of tariffs is a typical unilateral bullying practice that causes serious impact on normal international trade order and must be resolutely opposed. The negative effects of US tariff measures are continuously manifesting. The World Bank and the OECD recently both downgraded their expectations for US and global economic growth, with trade policy uncertainty being an important reason. The US economic community has warned that the stagflation effect of tariffs is brewing, which is bound to pose a long-term impact on global trade liberalisation; market uncertainty will continue to rise, and the final cost will be paid by consumers. 近来，随着美方加征所谓“对等关税”的“最后期限”临近，各方对新的经贸摩擦的担忧进一步上升。必须指出，美方滥施关税是典型的单边霸凌做法，对正常国际贸易秩序造成严重冲击，必须予以坚决反对。美方关税措施的负面效应正不断显现，世界银行、经济合作与发展组织不久前都下调了对美国和全球经济增长的预期，贸易政策的不确定性是重要原因。美国经济界普遍警示，关税滞胀效应正在酝酿，势必对全球贸易自由化构成长期冲击；市场不确定性将持续上升，最终成本将由消费者买单.
Practice has fully proved that only by firmly defending the principled position can we truly safeguard our legitimate rights and interests. A healthy and stable international trade order is necessary for the development of all parties. China is pleased to see all parties resolve economic and trade differences with the US through equal consultations, and advocates that all parties jointly maintain the multilateral trading system with the WTO at its core. At the same time, China has always emphasised that while bilateral negotiations are an important channel for easing and resolving trade frictions, bilateral arrangements cannot harm the interests of third parties. This is also the principle that China has always adhered to when conducting economic and trade negotiations with the United States. China firmly opposes any party reaching a deal at the expense of China’s interests in exchange for so-called tariff reductions. If this happens, China will never accept it and will resolutely counter it to safeguard its legitimate rights and interests. 实践已充分证明，只有坚定捍卫原则立场，才能真正维护自身合法权益。健康稳定的国际贸易秩序，是各方发展所必需。中方乐见各方通过平等磋商解决与美方经贸分歧，倡导各方共同维护以世贸组织为核心的多边贸易体制。与此同时，中方也一贯强调，双边谈判是缓和、解决贸易摩擦的重要渠道，但双边安排不能损害第三方利益。这也是中方同美方开展经贸谈判时始终秉持的原则。中方坚决反对任何一方以牺牲中方利益为代价达成交易，换取所谓关税减免。如果出现这种情况，中方绝不接受，将坚决予以反制，维护自身正当权益.
The multilateral trading system with the WTO at its core is the pillar of healthy and orderly development of global trade. Any short-sighted practices that damage this system will harm all parties’ long-term interests. No one can be immune to the impact of unilateralism and protectionism. Once the bottom line of principles is breached, blackmail will intensify, all countries will become victims, and the institutional environment for global development may suffer irreversible damage. The stormier the weather, the more strategic sobriety, unity, and coordination are needed. All parties should always stand on the side of fairness and justice, stand on the right side of history, resolutely defend international economic and trade rules and the multilateral trading system, and firmly safeguard international fairness and justice, working together to foster an open and inclusive international trade environment. 以世贸组织为核心的多边贸易体制，是全球贸易健康有序发展的支柱。任何破坏这一体制的短视做法，都将损害各方的长远利益。面对单边主义和保护主义冲击，谁都无法独善其身。一旦原则底线被突破，讹诈必将变本加厉，所有国家都会沦为受害者，全球发展的制度环境或将遭遇不可逆损害。越是风高浪急之时，越要保持战略清醒、加强团结协作。各方应始终站在公平正义的一边，站在历史正确的一边，坚决捍卫国际经贸规则和多边贸易体制，坚定捍卫国际公平正义，共同营造开放、包容的国际贸易环境.
Open cooperation is the only correct choice for all countries in the world to move forward hand in hand. As a responsible major country, China is willing to work with all parties to uphold true multilateralism, effectively safeguard the multilateral trading system, promote the construction of an open world economy, and jointly inject more certainty and stability into the world economy. 开放合作是世界各国携手走向未来的唯一正确选择。作为负责任大国，中方愿同各方一道，秉持真正的多边主义，有效维护多边贸易体制，推动建设开放型世界经济，共同为世界经济注入更多确定性和稳定性.