爱上海

US companies are welcome to continue to invest in China and cultivate the Chinese market to share development opportunities, Chinese Premier Li Qiang said on Wednesday when meeting a US business delegation in Beijing, stressing that "decoupling" and the "small yard and high fence" approach are not in the fundamental interests of both sides.

During his meeting with the US Chamber of Commerce (USCC) delegation led by President and CEO of the Chamber Suzanne P. Clark, Li said that the Chinese and US economies are highly complementary and their interests are deeply integrated. Strengthening economic and trade cooperation is a win-win outcome for both countries.

"China is pursuing Chinese modernization in an all-round way through high-quality development. US companies are welcome to continue to invest in China to share development opportunities. It is hoped that the USCC and entrepreneurs will continue to play the role of a bridge in promoting more communication and mutual understanding," said Li.

Clark said the US-China relationship is extremely important and "decoupling" is not a viable option. The USCC is willing to act as a bridge to deepen US-China economic and trade relations and mutually beneficial cooperation, and promote the steady development of US-China relations.

There are rising signs of improved engagement between the Chinese and US business communities. One of the latest examples is the ongoing visit by the delegation led by USCC at the invitation of China Council for the Promotion of International Trade (CCPIT). During the visit from Tuesday to Thursday, the delegation will hold discussions with US enterprises operating in China and relevant industry associations as well as government officials.

The increasing frequency of meetings and visits between Chinese and US officials and business leaders is a sign that the world's two largest economies remain committed to stabilizing their relationship despite lingering differences and tensions, analysts said.

The delegation members included Clark, President and CEO of the USCC and Susan C. Schwab, former US Trade Representative, Yang Fan, a spokesperson for the CCPIT, said on Wednesday during a press conference, adding that the visit aims to promote cooperation between the business communities of the two countries.

"The delegation will learn about the latest developments in China's economy and business environment, which once again proves that the US business community attaches great importance to and continues to pay close attention to the Chinese market," said Yang.

Yang outlined that Ren Hongbin, Chairman of CCPIT, met with Clark on Tuesday at a working luncheon. Ren noted that CCPIT is willing to strengthen communication and contact with the USCC and further deepen practical China-US cooperation in organizing delegation visits, holding exhibitions and forums, and promoting information sharing, in order to inject stability and positive energy into bilateral economic and trade relations.

When meeting Ren, Clark said that China is an extremely important market for US companies. The USCC is willing to continue to play its role in supporting US companies in doing business in China, deepening pragmatic exchanges between the business communities of the two countries, and promoting the sound and steady development of US-China relations, according to Yang.

The USCC is the largest business organization in the US. Its members include global corporations, small and medium-sized enterprises, local chambers and industry associations, according to the Chinese Embassy in the US.

The delegation held discussions with US enterprises operating in China and relevant industry associations, said Yang.

Prior to the delegation's visit, trade chiefs of the two countries met on the sidelines of the ongoing WTO Ministerial Conference in Abu Dhabi, the United Arab Emirates. The third China-US Economic Working Group meeting was held in Beijing in early February. Chinese and US officials held the third meeting of the Financial Working Group in Beijing on January 18 and 19. More high-level US officials, including US Treasury Secretary Janet Yellen, are expected to visit China later this year.

China and the US are continuing to step up engagement, which analysts saidwould provide much-needed confidence for businesses in both countries and the international community at a time of increasing global challenges.

The economic cooperation between China and the US is not only a matter of the two sides but also bears on the stability and prosperity of the global economy. Recent activities send a positive signal of stable relations and help allay the growing concerns of businesses and governments around the world, Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, told the Global Times on Wednesday.

"Therefore, the two sides should continue to strengthen communication and cooperation to jointly cope with global challenges and promote the sustainable development of the global economy," said Wang.

The significance of such exchanges is to achieve mutual assurance of win-win cooperation, thus making the supply chain more stable, efficient and economically viable, and strengthening commercial trust, Hu Qimu, deputy secretary-general of the digital-real economies integration Forum 50, told the Global Times on Wednesday.

"China-US economic and trade relations are mutually beneficial. This is why the US wants to engage with China, even as it focuses on competing with China and in some cases even containing it," said Hu.

However, to maintain this stable trend, the US must match its words with deeds, commit to not seeking to contain China, abandon its Cold War mentality, and focus on win-win cooperation, Hu warned.

At present, the US has not changed its positioning of China as a "strategic competitor."

Technological innovation has empowered the energy transition and green development of Beijing, which has also had a spillover effect on the Beijing-Tianjin-Hebei (Jing-Jin-Ji) region in North China, the Global Times observed through a visit to the national green development demonstration zone in Tongzhou district, Beijing's sub-city center.

"Advanced" and "well-developed" are apt words for the new types power systems observed by a Global Times reporter who visited the green demonstration zone.

For example, unmanned quality inspections of electric vehicle (EV) charging piles can be realized through assembly lines that are equipped with fully automated robotic arms, which can finish 172 test items.

As the country's first automated verification and testing assembly line for EV charging piles, the testing devices have a maximum power of 900 kilowatts, with a maximum daily testing capacity of 30 units, and the testing efficiency is 90 times higher than the original system, Wang Liyong, chief engineer of the Electric Power Research Institute of State Grid Beijing Electric Power Co, said in an exclusive interview with the Global Times on Friday.

"The assembly line won special awards at the 48th International Exhibition of Inventions Geneva in 2023, the world's leading annual event devoted exclusively to invention, which showed that China's manufacturing is fully recognized by the world," said Wang.

Cutting-edge technologies and key equipment independently developed by China are going global, Wang said.

The assembly line is part of the new power system experimental base located in the national green development demonstration zone. Covering 3.7 hectares, the laboratory is now a "test field" to boost green and low-carbon development with scientific and technological innovation in Beijing, the Global Times learned.

According to Wang, the experimental base has built a new type of power system featuring a smart distribution network to ensure effective interaction of source-network-load-storage flexible resources, which is empowered by artificial intelligence.

"The new power system can promote accurate matching between supply and demand and ensure reliable power supply," Wang noted.

Building a new type of power system with a smart distribution network is part of the goal of developing new productive forces in the energy and power industry, so as to accelerate talent training and promote industrial development, Wang said.

The new power system has been applied in various areas in Tongzhou, for instance, in the "Green Heart" Park, which is just beside the Grand Canal - a vast waterway system running from Beijing to East China's Zhejiang Province.

There are four newly built switching stations and 11 power distribution rooms in the "Green Heart" Park, enabling power supply reliability in the area to reach 99.9999 percent, Kang Qi, a deputy manager of State Grid Beijing Electric Power Co, told the Global Times on Thursday.

The demonstration base is a prime example of the stepped-up efforts by Tongzhou to realize high-quality development in a green manner, said Kang.

"State Grid Beijing Electric Power Company is dedicated to the construction of a new type of power system that is clean and low-carbon, cost-effective, supply-demand coordinated, flexible and intelligent, so as to promote the clean and low-carbon energy transition in the sub-city center of Beijing," Kang said.

Experts said that the application of the new power system can be widened to the rest of Beijing, and also the Jing-Jin-Ji area.

This year marks the 10th anniversary of the beginning of coordinated development in the Jing-Jin-Ji area. During the past decade, innovation-driven development has led to breakthroughs in green transformation, which have brought a cleaner and greener environment to people in the region.

In 2017, as a further boost to the coordinated development of the region, China announced the establishment of the Xiong'an New Area in North China's Hebei Province, which is meant to be built into a model of green development.

The digitalization of all power substations in the Xiong'an New Area has been completed, the Global Times learned from the local power supply unit of the State Grid during a recent visit to the area.

For example, the 220-kilovolt Jucun electrical substation is equipped with tech-enabled environmental monitoring devices and digital inspection robotics, which allow operators to make data-driven decisions and proactively address potential issues.

Chinese agricultural companies have ratcheted up collaboration with Brazilian counterparts through mergers and acquisitions, reflecting closer economic relations and China's imperative to secure and diversify food supplies, as the two countries celebrate their 50th anniversary this year.

As part of the latest efforts to deepen cooperation, Chinese companies such as Syngenta and Yuan Longping High-Tech Agriculture Co have made their moves this year in lining up to acquire stakes in Brazilian seed companies, according to media reports.

Chinese experts have said that the latest moves by the Chinese industry conglomerates showed their strong willingness to expand supply chain cooperation with the South American country in a wide range of areas, including trade, investment, business operations, technology interactions and more.

The cooperation has been strengthened after the bilateral relations have become closer than ever, with the visit by Brazilian President Luiz Inácio Lula da Silva in April, 2023. Agricultural cooperation was an important focus during Lula's trip.

Food security

Experts said that with food security being placed at the core of Chinese government agenda, the bilateral cooperation in the field will only get deeper and wider. Both Syngenta and Yuan Longping High-Tech Agriculture Co have strengthened their presence in Latin America through acquisitions since this year.

Yuan Longping High-Tech Agriculture Co will acquire 90 percent of the shares of the Cereal Ouro soybean seed processing plant located in Rio Verde, Brazil, according to jiemian.com on February 18, a move marks that the Chinese industry player's business in Brazil enters a new market segment.

This was not the first time that Yuan Longping High-Tech Agriculture Co expands the Brazilian market. The company has already opened up the South American market through a number of acquisitions. For example, in 2023, it opened research and development (R&D) centers in places such as Maranhao and Goias, while the R&D center in Parana is expected to be completed in 2024.

Similar to Yuan Longping High-Tech Agriculture Co's development path, Syngenta Vegetable Seeds announced its completion of the acquisition of Feltrin Sementes, a Brazilian vegetable seed company serving smallholder growers and home gardeners, in 2023.

Currently, Yuan Longping High-Tech Agriculture Co ranks third in the Brazilian corn seed market, behind Corteva of the US and Bayer of Germany.

Through cooperation, such as business mergers and acquisitions, Chinese companies can contribute to the advancement of the Brazilian farming industry by providing needed capital and technologies, Li Guoxiang, a research fellow at the Rural Development Institute of the Chinese Academy of Social Sciences, told the Global Times.

These mergers and acquisitions can also enhance the management of the supply chain, leading to further stabilization in the quality and quantity of agricultural products including soybeans, Li said.

Currently, the US and Brazil both serve as primary sources for China's soybean imports, with China's proportion of agricultural imports from Brazil steadily increasing.

Total soybean imports into China in 2023 reached 99.41 million tons, marking an 11.4 percent increase year-on-year. Among them, Brazil's share rose to 70 percent, while the US share decreased to 24 percent, according to public data.

In 2023, agricultural products exports from Brazil to China hit a record high to $58.618 billion, accounting for 24.85 percent of China's overall agricultural imports, according to data from the General Administration of Customs.

Key factors driving this trend include Brazil achieving a historic high in soybean production last year, leading to sustained price declines on the market.

Concurrently, soybean yields in the US dropped compared with the previous autumn, compounded by lower water levels in the Mississippi River impacting barge transportation in the Gulf of Mexico, and low water levels in the Panama Canal affecting transit shipping. These factors slowed down export momentum to China, prompting Chinese buyers to expedite procurement in Brazil to secure grain supplies, Li said.

Cooperation potential

This year marks the 50th anniversary of diplomatic relations between China and Brazil, with more cooperation expected to take place at the governmental and business levels. With this backdrop, experts said there is a much larger scope for cooperation that the two agricultural powers can explore.

China's robust demand for imported soybeans, often utilized as animal feed, has been greatly bolstered by the rising demand for pork.

In 2023, China's soybean imports remained above 60 percent of the world total. Experts anticipate the trend will persist with the expectation of a sustained market recovery after the pandemic.

On the other hand, Brazil is seeking to gain more access to substantial markets like China and attract more investment from China to facilitate the sale of its products and stimulate economic recovery, Wang Youming, director of the Institute of Developing Countries at the China Institute of International Studies in Beijing, told the Global Times.

"The potential for cooperation is indeed substantial for both parties," Wang said, citing the example of how Chinese companies can meet their business development needs by taking part in the construction of Brazil's infrastructure, in line with local policies.

Brazil primarily transports its agricultural products from production areas to ports via railways and waterways, but these systems are outdated and insufficient, severely hampering the development of Brazil's foreign trade, Wang said.

Currently, Chinese companies have successfully applied advanced technologies such as cloud computing, big data, remote sensing and artificial intelligence in agricultural production. This has enabled real-time monitoring of crops and soil while effectively reducing pest and disease rates, and improving crop yields and quality.

"Brazilian companies can collaborate with Chinese counterparts to apply these advanced technologies to agricultural production in Brazil," Li said.

Chinese stocks extended their rally on Thursday on the back of newly announced support policies, with the Shanghai Composite Index rising 3.03 percent to climb above the 2,900-point mark.

Analysts expressed confidence in the long-term performance of both the Chinese economy and its stock market, which will continue to defy doomsayers and inject certainty into the world economy this year.

On Thursday, the Shenzhen Component Index was up 2 percent to 8,856 points, and the tech-heavy ChiNext index was 1.45 percent higher at 1,720 points. Net purchases through northbound trading (money invested from Hong Kong into the Chinese mainland) reached 6.29 billion yuan ($888 million), public data showed.

More than 4,800 shares rose, with nearly 100 rising by their daily limit. Shares related to state-owned enterprises led the rally.

The rally came after Chinese authorities in recent days announced a package of policies that boosted market confidence.

Amid the rally on Thursday, a number of foreign investors began to take a bullish view of Chinese assets.

Nicolas Aguzin, CEO of Hong Kong Exchange and Clearing, said at the Asian Financial Forum that international investors remain optimistic about China's growth potential, and he advised investors to diversify their portfolios, stay resilient and wait for the market to rebound.

The Hang Seng Index in Hong Kong closed up 1.96 percent on Thursday, while the Hang Seng Tech Index rose by 0.9 percent.

Bob Prince, co-chief investment officer of Bridgewater Associates, said at the Asian Financial Forum that the company sees attractive prices for Chinese assets and is further deepening its investments in the Chinese market. He also addressed recent policy packages by Chinese regulators to prop up the market. "China still has room for monetary and fiscal policies to help drive the economic recovery," he said.

The rally on Thursday reflected positive policies that reversed market expectations, Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co, told the Global Times on Thursday.

On Wednesday, the People's Bank of China, the central bank, announced a reserve requirement ratio (RRR) cut of 50 basis points to unleash 1 trillion yuan of liquidity to bolster the economy. 

Various Chinese ministries also made positive statements on issues such as stock market volatility, investor protection and capital market regulation, sending positive signals.

The China Securities Regulatory Commission on Wednesday emphasized the importance of protecting the legitimate rights and interests of small and medium-sized investors.

The State-owned Assets Supervision and Administration Commission of the State Council said on Wednesday that it plans to integrate share market value management into the performance assessments of central enterprise leaders. 

The regulators' proactive approach in injecting liquidity into the market is a positive step toward stabilizing the financial system and boosting investor confidence, Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at the Renmin University, told the Global Times on Thursday.

These measures are expected to have a favorable impact on the stock market and contribute to overall economic growth, Dong said.

Pan Gongsheng, governor of the People's Bank of China, said at a press conference on Wednesday that China still has plenty of room for monetary policy maneuvers.

"We will strike a balance between the short term and the long term, stabilizing growth and preventing risks, while strengthening countercyclical and cross-cycle policy adjustments to build a sound monetary and financial environment for economic growth," Pan said.

It is evident that China's economy has started to recover. However, there still remains the problem of insufficient demand, which calls for intensified policy measures to boost domestic consumption. 

Employing countercyclical adjustments to stabilize market expectations and improve market sentiment is crucial in this regard, Yang said.

More policies are expected to further strengthen the vitality of the economy, experts said.

For the capital market, policies should be rolled out to increase the incentives for investors to achieve higher returns, while simultaneously imposing strict penalties for illegal or non-compliant activities. Only through these measures can the market sustainably recover and make progress, Dong noted.

Yang expected a surge in government bond issuance for infrastructure development, which will create jobs and foster stable investment growth. Additionally, concerted efforts should be made to bolster personal incomes, stabilize the property market and invigorate the stock market, all of which will serve as catalysts for increased consumption, he said.

A Boeing 737 MAX flying from Seattle arrived at the Guangzhou Baiyun International Airport in South China's Guangdong Province on Saturday, flight information provider VariFlight revealed on Saturday. Information shared with the Global Times showed that the plane, operating under the number CZ5073, has joined the China Southern Airlines fleet.

The delivery ended a freeze of nearly five years, after China suspended most orders and deliveries of Boeing planes in 2019 following two fatal crashes of the 737 MAX in other countries.

The delivery of the Boeing 737 MAX comes at a moment when the US plane manufacturer is in turmoil.

Reuters reported that the US Federal Aviation Administration on Wednesday tightened pressure on Boeing by barring the troubled planemaker from expanding production of its best-selling 737 MAX narrow-body planes, following "unacceptable" quality issues.

The delivery of aircraft to customers in China is probably the result of previous orders, Wang Ya'nan, chief editor of Beijing-based Aerospace Knowledge magazine, told the Global Times on Sunday.

Since the company is under the shadow of these troubles and its shares have taken a heavy hit, the delivery of planes that generate cash flow is positive for Boeing, Wang said.

Regarding the delivery of the MAX series in China, China's Foreign Ministry said on Thursday that the Boeing 737 MAX8 model had met the delivery requirements set by Chinese regulators as of December 8, 2023.

Before the delivery of the MAX, a 787-9 Dreamliner ordered by Juneyao Airlines was delivered in December last year. It was the first time since November 2019 that Boeing had delivered a 787 Dreamliner plane to a Chinese airline.

With problems highlighted by the mid-flight blowout of a door plug on an Alaska Airlines flight earlier in January, the US aircraft manufacturer's shares have dropped more than 21 percent in the past month.

Alaska Airlines on Friday announced the plan to return 737 MAX 9 jets to service for the first time since the accident on January 5.

All Boeing 737 MAX jets operated by Chinese carriers were back in service at the end of 2023, the US planemaker's China head said in December.

China's home-developed C919 aircraft has also geared up for service in China. China Eastern Airlines said on Saturday that all the C919 aircraft it received will be used during the Chinese New Year's travel rush.

China plans to launch a “2024 Spring Breeze Action” nationwide from late January to early April, aiming to create 30 million jobs, the Ministry of Human Resources and Social Security said on Wednesday.

The initiative will specifically target rural labor and businesses with a shortfall of workers, focusing on guiding migrant workers returning to urban centers, promoting local employment and entrepreneurship, and organizing recruitment services for businesses, Yun Donglai, a senior official with the labor ministry's employment promotion department, said at a press conference.

This action includes six key aspects. Firstly, it involves accurately identifying needs across the labor market by delving into rural communities and workshops, using various methods to learn the work preferences of workers and the headcount requirements of employers, Yun said.

The action also includes conducting intensive recruitment by making full use of online platforms such as public recruitment websites and short video platforms, as well as public squares, stations and market places to launch targeted recruitment activities.

It will also facilitate joint recruitment between labor intensive regions and those regions short of laborers; encourage entrepreneurship by exploring entrepreneurial incubation bases and hometown entrepreneurship parks. Additionally, it will aim to match job opportunities and skill training for aged migrant workers.

The entire initiative is expected to create more than 30 million job opportunities, Yun noted.

The Spring Breeze Action has been underway for many years, representing a significant part of government-led efforts to promote employment, Li Changan, a professor at the Academy of China Open Economy Studies of the University of International Business and Economics, told the Global Times Wednesday.

The period from January to April is crucial for the labor market, particularly for groups like migrant workers, as the period around the Spring Festival holidays represents a crucial juncture for choosing a job, Li said.

Through the support of these policies, it could reduce the imbalance in employment information and enhance overall employment efficiency, Li said.

In 2023, China added a total of 12.44 million urban jobs, official data revealed. The surveyed urban unemployment rate in the country stood at 5.2 percent, down 0.4 percentage points from 2022.

The overall employment situation remains stable, with a continued improvement in employment for key demographic groups, the National Bureau of Statistics said in a report.

The China Chamber of Commerce to the EU (CCCEU) on Wednesday expressed concerns about the impact of the European Economic Security Package (EESP) presented by the European Commission (EC), warning that the move may shatter the confidence of Chinese businesses investing and operating in Europe.

The EC presented the EESP in Brussels on the same day, featuring revisions of the EU's foreign direct investment (FDI) screening mechanism and addressing aspects of the bloc's outbound investment, export controls, research security, and dual use goods.

This was regarded as part of the follow-up measures by the European Union (EU) targeting countries including China, their major trading partner, over so-called security issues, experts said.

The CCCEU closely monitors the ongoing development of the EU's economic security strategy and it expressed concerns about the impact of the EESP on Chinese companies' investment, trade, and innovation collaboration within Europe, the chamber said in a statement sent to the Global Times late on Wednesday.

Of particular note, the package suggests enforceable rules to tighten FDI screening and introduces measures that might impact the EU's outbound investment, exports, and research collaboration, potentially influencing the confidence of Chinese businesses investing and operating in Europe, the chamber said.

The EU's politically motivated attempt to "decouple" with China has been intensifying in recent years, which has directly contributed to a drop of Chinese investment flows to the region.

In 2022, Chinese investment flows to the EU were $6.9 billion, a 12.2 percent decline from 2021. This was partly attributed to regulatory barriers, as Chinese enterprises shifted from mergers and acquisitions (M&As) to greenfield investment in Europe.

A CCCEU survey of 180 Chinese companies and organizations last year found that 28 percent planned to expand their presence in Europe within the next 1-3 years, with 26 percent intending to increase investment and M&A activities.

There are also expectations within China's business community that the EU will create a more favorable investment and business environment for Chinese enterprises looking to develop in Europe.

On behalf of over a thousand Chinese enterprises in the EU, the CCCEU urged the EU to improve its investment and business climate, including efforts to "respect the global division of labor along global industrial chains, refrain from pursuing obsessive friendshoring in supply chains and trade tools through non-market means, and prevent the 'de-risking' strategy from being generalized to negatively affect industrial sectors."

The EU was also urged to ensure that Chinese enterprises enjoy the same equitable industrial opportunities, market access, and business environment as other enterprises in Europe, while maintaining dialogue and cooperation in the strategic development areas for China and Europe, such as new energy, the digital economy and green economy.

"Chinese enterprises view the European market as crucial to their global expansion and are prepared to intensify investments and engagement in Europe. The hope remains that the EU will foster a fair, non-discriminatory investment and business environment for Chinese companies," the CCCEU said.

Correct mutual perception is the basis for a thriving China-EU relationship and misperceptions can easily lead the relationship astray, causing instability and imbalances, Fu Cong, China's Ambassador to the EU, said in an article on January 18.

A healthy and stable China-EU relationship not only serves the interests of the two sides, but also meets the expectations of the wider global community, the ambassador noted.

China's economy is likely to continue running on its post-pandemic recovery track in 2024, boosted by the government's pro-growth policy accelerations, including higher fiscal spending and a looser credit environment orchestrated by the central bank to inspire corporate investment and household consumption. 

Meanwhile, rising introduction of digital solutions, AI, robotics and quantum computing will bring about higher levels of industrial automation and productivity upgrade in China, fortifying the country's economic strength. 

The policymakers still have potent policy tools to shore up economic growth. There exists some room to maneuver and stimulate the sizable Chinese economy by borrowing and spending on a wide variety of projects and services, including rural infrastructure, urban utilities, tech innovations and expansion of manufacturing plants as well as improving the country's sprawling social safety net, including the pension coverage for the retired people and better medical care for all newborns and other citizens.

The world's second largest economy expanded by 5.2 percent in 2023 from the previous year to top more than 26 trillion yuan, as it rebounded from nearly three years of stringent anti-coronavirus control measures. Compared to merely 3.0 percent rise in 2022, the 5.2-percent growth is significant and impressive, standing among the highest growths reported by the world's major economies. 

It isn't easy for the country to obtain this feat as the global economic slowdown drags on which hamstrings overseas demand for Chinese products. At the same time, the global geopolitical conflict is deteriorating, and the geo-economic situation is becoming increasing complex thanks to the US government's ruthless attempt to strangle Chinese development by launching the tariffs war and restricting Chinese enterprises' imports of American high-tech products, such as semiconductor chips.

But Chinese companies are rapidly catching up in researching and developing new technologies. For example, an estimated 65 percent of the world's new-energy vehicles and quality batteries were manufactured in China last year. More than 31.6 percent of the cars, buses and trucks sold in the market in 2023 are electric or hybrid power vehicles, and the government has set an ambitious plan to strive for 45 percent new-energy-vehicle market penetration rate in 2027. Meanwhile, China now draws more than half of its electricity output from clean renewable sources, including wind turbines, solar panels, hydropower and nuclear power stations. 

The mutually reinforcing growth of the NEV sector and the renewable green energy industry is expected to provide solid gains and new momentum for the overall economy in 2024 and beyond, and make up for the loss caused by the protracted housing market slowdown. Last year, China's manufacturing investment went up by 6.5 percent, while real estate development dropped by 9.6 percent, the National Bureau of Statistics said on Wednesday.  

It is of great importance to put an early end to the three-year housing market correction since 2021 triggered by the pandemic, as the authorities and state-owned banks are ramping up monetary support by reducing property down payments and cutting mortgage rates to encourage more people to purchase homes and stabilize the market. 

By all metrics, real estate is an important sector impacting GDP growth. If the housing prices keep dipping, more middle-class households would feel less financially secure, which may inhibit their enthusiasm to purchase other commodities. Now, all major Chinese cities including Beijing, Shenzhen and Shanghai have moved to relax prior administrative curbs on home purchases and sales, an effective way to shore up market morale. Developers are also able to have easier access to bank loans. 

Despite the US' higher tariffs imposed on Chinese imports which dented bilateral trade volume by some 9 percent last year, China's foreign trade with other major trade partners, the ASEAN and China's neighboring countries and economies in particular, held up, reaching or slightly exceeding 2022 levels. Total exports denominated in Chinese yuan last year hit the previous year's levels. It is expected global trade situation is unlikely to improve very much this year, which calls for Chinese policymakers to think of more effective ways to explore the global market. 

With regard to reinvigorating China's domestic consumption - a major force supporting economic growth, the government will continue to churn out tax reliefs and other incentives to ratchet up retail sales this year. Chinese residents were seen spending more on domestic travels, cinemas, restaurants and hotels in 2023, and big retailers seem to have finished the sale of their excess inventories they accumulated during the pandemic and have started to place new orders. 

The 5.2 percent GDP growth last year could be considered a forceful rebuttal of Western media's reckless hype of the "China collapse" narrative. Kang Yi, the commissioner of the NBS, said Wednesday that China's national economy witnessed momentum of recovery, high quality development was steadily executed, and major pre-set economic targets were achieved. As for 2024, although the government hasn't announced a growth target, most Chinese economists have confidence that the country is able to realize about 5 percent growth in GDP. 

At the Central Economic Work Conference held in December 2023, the policymakers stressed the need to expand domestic demand, noting that "efforts should be made to stimulate consumption with potentials and expand productive investment to create a virtuous cycle of consumption and investment. The development of digital consumption, green consumption and health consumption should be stepped up, and new growth levers such as consumption of smart home appliances, entertainment and tourism, sports and trendy domestic brands should be well fostered."

The Chinese economy has demonstrated remarkable resilience in 2023, as it emerged from the pandemic battering. Vehicle exports surged by 58 percent last year, as China surpassed Japan to become the world's largest vehicle exporter. Entering 2024, the Chinese economy, supported by a significant tick-up in government spending programs and possible interest rate lowering by the central bank, will keep forging ahead, acting as a major engine of the regional and global growth despite the persisting volatilities in the world. 

The report to the 20th National Congress of the Communist Party of China (CPC) clearly states: "From this day forward, the central task of the CPC will be to lead the Chinese people of all ethnic groups in a concerted effort to realize the Second Centenary Goal of building China into a great modern socialist country in all respects and to advance the rejuvenation of the Chinese nation on all fronts through a Chinese path to modernization." In this context, the 2023 Central Economic Work Conference further deepened the understanding of the laws governing economic work in the new era, emphasizing that "promoting Chinese modernization must be upheld as the foremost politics," which is of great significance.

Chinese modernization is one of a huge population, of common prosperity for all, of material and cultural-ethical advancement, of harmony between humanity and nature, and of peaceful development. It is a high-standard definition of modernization that not only has milestone significance for China's development but also provides a strong impetus for global modernization and offers a new choice for countries and peoples in the world that hope to accelerate development while maintaining their independence.

Promoting Chinese modernization as the "foremost politics" is determined by the nature of the CPC. This is a manifestation of the CPC's clear political stance which once again clarifies the greatest mission of mission-oriented political parties in the new era: to achieve the goal of becoming stronger through the advancement of Chinese modernization. At the same time, "foremost politics" also puts forward higher requirements for all aspects. First, all governmental departments across the country must form the greatest synergy and solidly promote the building of Chinese modernization; second, the whole society must form the greatest consensus and deepen reform and opening-up across the board, injecting strong momentum into the advancement of Chinese modernization.

Promoting Chinese modernization as the "foremost politics" requires a full understanding of the changes in the domestic and international environment, as well as the difficulties and challenges faced.

From an international perspective, we face four major challenges. First, there have been significant changes in the world pattern and situation, with the international order showing a trend of "fragmentation." Second, protectionism prevails in international trade, and the "decoupling" of the US and some Western countries from China will not stop. Third, a new round of "cognitive warfare" has begun in the economic sphere, as the expressions of "peak China," "China collapse" and "China uninvestable" still linger. Fourth, external forces are constantly creating conflicts around the Taiwan question and the South China Sea issue, attempting to once again obstruct China's modernization process.

To promote Chinese modernization as the "foremost politics," it is necessary to plan further major initiatives to comprehensively deepen reform to continue injecting strong impetus into promoting high-quality development and advancing Chinese modernization. We must adhere to high-quality development as the fundamental requirement of the new era, firmly grasp its priority task, and promote consensus-building and resource organization. The CPC needs to fulfill its core role of exercising overall leadership and coordinating the efforts of all sides. Moreover, we need to urge efforts to build a unified national market through regional economic integration and deepen rural land system reform, combining the promotion of a new type of urbanization and the comprehensive promotion of rural vitalization.

In particular, expanding high-level opening-up is necessary to promote Chinese modernization as the "foremost politics." First, while safeguarding national core interests, China should fulfill its responsibilities as a major country and provide a Chinese solution for world peace and development. Second, we must steadily expand institutional opening-up in terms of rules, regulations, management and standards, actively participate in the formulation of international rules, and strive for institutional power in global economic governance. Third, we should promote China's modernization through precise, unilateral opening-up. Fourth, we should seize the new opportunities brought by the Regional Comprehensive Economic Partnership Agreement (RCEP) and explore the construction of a China-ASEAN common market based on it. Fifth, we should encourage Chinese companies to extend their supply chains and industrial chains, cultivate multinational corporations, and promote domestic-international dual circulation.

Sinovac Biotech, one of the major inactivated vaccine manufactures in China, has reportedly halted COVID-19 vaccine production. The company did not confirm the news but industry observers believe it is a response to falling market demand. 

A circulated document from Sinovac Life Sciences Co., Ltd titled "Scheme for Suspending Performance Bonuses for COVID-19 Projects" indicated that the company completely halted their production of COVID-19 vaccines, with vaccine products no longer on sale, according to Jimu News, a media outlet affiliated with Hubei Daily. 

Sinovac Life Sciences is a subsidiary of Sinovac Biotech Ltd, one of the main inactivated vaccine manufactures in China. The document said that the company has decided to stop issuing performance bonuses for employees involved in the COVID-19 project starting from January 2024.

Citing one staff member from the product consultation hotline of Sinovac Biotech, Jimu News confirmed that the company's COVID-19 vaccine has indeed been discontinued. The report quoted the staff member as saying that if there is a need for the product, individuals would have to inquire with the local disease control center about its availability. 

The news ignited a storm of discussions online, some of which was linked to the safety and efficacy of the vaccine. Sinovac Biotech has not responded to an interview request from the Global Times as of press time.

Sinovac Biotech's decision to suspend production of their COVID-19 vaccines is a response to what is believed to be falling market demand, and there is no need for undue alarm or exaggeration, Shao Yiming, an immunologist at the China CDC, also one of the chief medical advisors for the research and development of Chinese COVID-19 vaccines, told the Global Times on Thursday. 

During the early phase of the COVID-19 epidemic, Sinovac was one of the few vaccine manufacturers approved for emergency use in the market. However, the country has now approved over 10 vaccine technologies, providing people with more choices. On top of that, the decline in demand for COVID-19 vaccinations, as a result of the strong immunity barrier established against the virus in the country, has also contributed to the suspension of production, Shao pointed out.

The Global Times learnt from several immunologists that citing Sinovac's business activity to suspend vaccines productions to question efficacy of the COVID-19 vaccine and safety of inactivated vaccines makes no sense.

The suspension of producing COVID-19 vaccines was not isolated to Sinovac Biotech, according to media reports. For example, on July 19, 2023, Stemirna Therapeutics, which was among domestic vaccine manufacturers racing to develop mRNA in China, suspended its trial operation due to "lack of demand." All of this happened just two and a half years after it obtained clinical approval for the COVID-19 mRNA vaccine in January 2021.

The current dominant JN.1 strain possesses a high transmission capability and the ability to evade the immune system, which implies that the effectiveness of first-generation vaccines based on the original strain may diminish. Vaccine manufacturers are under significant pressure to keep pace with virus mutations and ensure the efficacy of vaccines. It is possible for the vaccine to become outdated even before it is commercially available, a Beijing-based immunologist who preferred to remain anonymous told the Global Times. 

In response to the fast mutation of the coronavirus, and the decrease in neutralizing antibody titers and protection rates against variant strains by the first-generation vaccines, at least five COVID-19 vaccines were approved for emergency use in December, 2023, media reports showed. 

Meanwhile, the National Administration of Disease Control and Prevention had also strongly encouraged residents to receive jabs containing the XBB variant antigen component, especially for this year's autumn and winter seasons. 

The key purpose of COVID-19 vaccine is to protect against death and severe illness, not infection. Significant evidence has demonstrated inactivated vaccine has been approved effective and relatively less serious adverse reactions, Shao noted. "It is meaningless to attack inactivated vaccines."

A study of the University of Hong Kong in 2022 revealed that three shots of CoronaVac offered approximately 98 percent protection against death or severe illness in people aged 60 and above in the city.

The latest report by Chinese Center for Disease Control and Prevention showed that throughout December 2023, a total of 3,779 locally transmitted cases of COVID-19 with valid genomic sequences were reported in the Chinese mainland. All cases were identified as Omicron variant, covering 72 evolutionary branches. The predominant variant was the XBB, with the top three being XBB.1.9 and its sub-branches, XBB.1.16 and its sub-branches, and XBB.1.22 and its sub-branches.

During the period, a total of 88 new severe cases and 11 deaths were reported. Among the deaths, two cases were caused by respiratory failure due to COVID-19 infection, and nine cases were due to the combination of underlying diseases and COVID-19 infection, according to China CDC.