The best way to commemorate Henry Kissinger may well be to remember the importance of diplomacy and the need for great powers to behave responsibly and soberly in their relations with each other, Thomas A. Schwartz, a renowned academician and author of Henry Kissinger and American Power: A Political Biography, told the Global Times on Thursday.
As the biography author who spent long time with Kissinger for the book, Schwartz noted that Kissinger's great goal was to "create a structure of peace and stability, and we would honor him by pursuing that effort."
Former US secretary of state Henry Kissinger died on Wednesday at his home in Connecticut at the age of 100, Kissinger Associates Inc said in a statement.
He is viewed as an important figure in the China-US icebreaking process in 1972 while his secret trip to China in 1971 paved the way for a thawing of bilateral relations, which ushered in a new era in China-US relations and for the world.
Kissinger was an "intermediary" between China and the US government. He carried messages to Chinese leaders from the US and carried responses back to American presidents. He played a leading role in US foreign policy during the Nixon and Ford presidencies, and his diplomatic ideas continued to have a profound impact on the US government's foreign policy even after he left office.
According to records, since then Kissinger has visited China more than 100 times in his lifetime with his last visit having been made in July 2023 when bilateral ties hit a low point.
"We need more figures, who are in that realm of communicating between the two countries. And we need to have a whole range of institutional dialogues between government, military, and economic officials, so that there is a constant understanding," Schwartz told the Global Times previously.
Schwartz also said that, although Kissinger was 100, he was still surprised when he heard the news of his death.
"Two days ago I watched an interview he did, and he was still sharp and articulate, and his analysis of international issues remained impressive. He seemed indestructible," he said.
Kissinger was known for his longevity as he kept maintained a grueling 15-hour workday and demanding international travel schedule even at the age of 99, according to media reports. On China's social media platforms, some netizens discussed heatedly about his habit of staying up late and eating fried food but can still keep healthy and energetic.
In response to the question about what lessons current and future world leaders should draw from Kissinger's experiences and diplomatic strategies, he underscored negotiation in which Kissinger had strong faith.
"Kissinger firmly believed in negotiation, and he believed in sticking with negotiations even in the most difficult circumstances. He believed that diplomacy was better than hostility, and that nations with different systems could coexist and live together peacefully," he said. "This sounds simplistic, but it really was something he constantly advocated and sought to achieve."
In a previous interview with the Global Times, Schwartz said that a major difference between Kissinger and diplomats in the US today is that, presently "a lot of our diplomats have relatively little sense of the broader range of history. Kissinger had a sense from history that terrible things can happen. And I think American diplomats today sometimes don't recognize the degree of danger that can come from careless diplomacy."
In this sense, Kissinger always had a sense that people needed to be extraordinarily careful in undertaking diplomatic tests, and that people should not treat disputes between nations lightly.
"There is a tendency to think of short-term advantages instead of long-term interests. I think Kissinger had a broader and a longer term sense, partly because he was thinking as a historian, or as someone who has a vision of a longer period, he pointed out," he said.
According to Schwartz, Kissinger hoped that Americans will have a broader historical vision of world stability and a broader understanding of other countries. "I think he would like that to be his legacy: A better understanding of the world and of other countries, and of the need for effective diplomacy to maintain peace."
Chinese people believe that letters are as valuable as gold. For thousands of years, letters, across mountains and oceans, have been delivering the writers' sentiments, friendship, and expectations.
Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, has managed to find time to reply to some letters from different parts of the society and the world despite his busy work schedule. Xi is also Chinese president and chairman of the Central Military Commission.
Through his letters, Xi has corresponded with international friends from all walks of life on numerous occasions. His letters have also been delivered to "home" senders such as Chinese experts and artists. The Global Times traced and contacted some of the addressees of Xi's letters to hear the inspiring stories behind the letters.
This installment tells the story of letters exchanged between Xi and Matias Tarnopolsky, president and CEO of the Philadelphia Orchestra. When Chinese President Xi Jinping replied to a letter from Matias Tarnopolsky, president and CEO of the Philadelphia Orchestra, on November 10, the friendship of half a century was further strengthened through the art of music. This not only reflects the importance that both sides attach to cultural exchanges, but also provides a good opportunity for cooperation and understanding between the two countries.
On the evening of November 10, the National Centre for the Performing Arts (NCPA) in Beijing hosted a concert titled "50 Years of Friendship" to commemorate the 50th anniversary of the Philadelphia Orchestra's first visit to China in 1973. The concert was performed by the Philadelphia Orchestra and the China National Symphony Orchestra.
As the baton of Tristan Rais-Sherman, assistant conductor of the Philadelphia Orchestra, was raised, the Overture of Candide composed by American conductor Leonard Bernstein was played to unveil the performance. The spirited piece was followed by a tranquil Chinese melody, Two Springs Reflect the Moon, that both Chinese and American audiences were familiar with.
Ahead of Friday's special concert, the letter was read inside the concert hall, in which President Xi expressed hopes that orchestras and artists from China, the US, and across the world would persist in efforts to strengthen people-to-people ties between China and the US, and spread friendship among the peoples of the world. Tarnopolsky said he was honored and grateful.
The concert was held at a special moment as, on the other side of the NCPA, the ballet Giselle mounted by the American Ballet Theater was also in progress on the same day.
These cultural exchanges were held only several days ahead of the planned meeting of the heads of state of China and the US.
"It's going to be an important meeting, and we're very much looking forward to it and receiving President Xi in our country," Tarnopolsky said on the day of the concert.
During the interview after the inaugural performance in Beijing, Tarnopolsky told the Global Times that he was honored and grateful to receive the letter from Xi.
"It is an honor for the Philadelphia Orchestra to receive a letter from President Xi in this moment of 50 years of visits to China. And we're very grateful for the warmth of the welcome that the Philadelphia Orchestra always receives in China," he said.
"President Xi has recognized that is a very important gesture and encourages us to keep coming and keep playing music and making these connections with the people of China."
No matter how the world changes, he believes that there are neither hierarchies nor differences between people when it comes to music. "Music can give voice to ideas that words alone cannot convey," added the CEO. Collaborative endeavor
Tarnopolsky firstly wrote to Xi, reviewing the history of the orchestra's ties with China and introducing the activities to be held in China in November to commemorate the 50th anniversary of its first China tour.
In return, President Xi wrote back to Tarnopolsky.
In his reply, President Xi said that he hopes the orchestra and artists from China, the US, and across the world will continue efforts to strengthen people-to-people ties between China and the US, and spread friendship among the peoples of the world.
Half a century ago, the orchestra's historic China tour marked a thaw in China-US cultural exchanges, which was a very important part in the normalization process of the two countries' diplomatic relations. Since then, the orchestra had visited China 12 times as an active cultural envoy, playing an instrumental role in strengthening China-US ties, Xi said.
Over the course of half a century, the orchestra has served as a dynamic cultural envoy between China and the US. Some of the musicians, such as Davyd Booth, were part of the ensemble since their first visit to China in 1973.
Ryan Fleur, executive director of the Philadelphia Orchestra, told the Global Times on Friday that the 50th anniversary celebration was a collaborative endeavor from both sides, which was made possible by the invitation from The Chinese People's Association for Friendship with Foreign Countries that has been their partner since 1973.
But the connection of the orchestra with China goes back even further: As early as the 1940s, the orchestra staged concerts to raise funds for China's Eighth Route Army led by the Communist Party of China (CPC), in their resistance against Japanese aggression during World War II.
"It was a great achievement. Both China and the US want to celebrate the 50th anniversary of the tour, which was a historic event. Music had a profound impact on people's lives, and the orchestras' performance in 1973 was a life-changing event for many people," Tarnopolsky told the Global Times in a previous interview.
Adding to that, the CEO gave a glimpse into the perceived future.
"We're planning the next 50 years. And we also have another Chinese Lunar New Year concert planned in Philadelphia, so we'll be celebrating Chinese Lunar New Year in January."
Exchanges beyond music
Visits by the Philadelphia Orchestra to China over the years have been very influential to musicians from the two countries. They not only get to share the same stage, but also have exchanges beyond the musical arena.
Fifty years has passed, contributions by two members of the then Central Philharmonic (now China National Symphony Orchestra), 90-year-old Zhu Xinren and 88-year-old Yang Shi, in training with US musicians continue to be unforgettable experiences.
Eugene Ormandy, the then conductor of the Philadelphia Orchestra until 1980, and other US musicians watched a performance by their Chinese counterparts on September 15, 1973. They showed great interest in the string ensemble Two Springs Reflect the Moon, which had just been adapted by Wu Zuqiang, leader of the composition group of the Central Philharmonic. The charm of Chinese melody immediately attracted them.
"They asked to get the score sheets in the hopes of performing it in the US. It was just finished a year before by Wu and the debut had made it possible for it to head to the US stage," violinist Zhu recalled.
Chinese conductor Li Delun led the Chinese orchestra in a performance of one movement from Beethoven's Fifth Symphony. He then handed his baton to Ormandy and requested that he conduct the next movement. Ormandy led the orchestra to thunderous applause.
"Music connects the world. He also praised us young performers for our strong receptivity. This can be said to have been a worldwide cooperation," said Zhu.
When musicians had talks after the performances, US musicians were particularly surprised when they saw the musical instruments that their Chinese counterparts held, recalled Yang.
At the time, the conditions under which our orchestra mounted performances were not good as instruments were broken or glued back together, and the scores were old handwritten ones and were pasted together. "They didn't expect that our musicians could play such good music with such instruments."
Musical instruments were given as gifts to each other. Chinese musicians were moved when their US counterparts presented them with instruments such as a clarinet, trumpet, flute, and a set of triangles, as well as scores of famous European and American composers, and hundreds of records and orchestra's professional books.
For the Central Philharmonic, which was facing a difficult period at the time, these instruments and materials solved the orchestra's urgent needs. Yang Shi said: "They sent us a batch of woodwind and brass instruments, which was a timely help. But the instruments we gave them also made them even more surprised and happy."
The Chinese musicians presented pipa, Chinese gongs, erhu, flower drums, and other national musical instruments that best represent Chinese music as gifts to US musicians. Zhu recalled: "The indispensable Chinese musical instrument is the gong. The gong we sent was custom-made by a master from Shandong. The diameter of the gong is 1.1 meters. Their gong is only 60 centimeters. So when they saw that we brought in such a big one, they were all shocked."
This past weekend, China again bestowed another gift to the Philadelphia Orchestra to mark the special occasion: A rare vinyl record of Yellow River.
As Yin Bo, deputy director of the China National Symphony Orchestra, noted on Friday, Chinese and American musicians will collaborate through music to foster cultural understanding among the youth of both nations.
"The gesture from President Xi was an acknowledgment and an incentive for most literary and art workers," Liu Zhiyong, deputy chief of the same orchestra said. "President Xi's reply letter conveyed his sincere aspiration for enhancing extensive cultural exchanges and cooperation between China and the US."
The 2023 Basketball Game for Foreigners commenced recently in Beijing. The game was co-organized by the Foreign Affairs Office of the People's Government of Beijing Municipality and the Beijing Municipal Bureau of Sports.
Nearly 30 expatriates from 17 countries such as Japan, United States, Brazil, South Korea, Zambia, and other countries participated in the match.
The Mongolian Embassy in China, five universities including the University of Science and Technology Beijing (USTB), and the Beijing-Japanese Club Basketball Association (Beijing 56°ers) formed eight teams to participate in the competition.
The event has been held for six consecutive years, with a high reputation among embassies and expatriates, and has so far seen more than 60 teams with about 1,400 expatriates in Beijing participate in the tournament, to an audience of 20,000 local and international spectators.
This is the first time that this year's basketball tournament has been included in a Beijing-level social basketball activity, the Beijing Second Community Cup Basketball League Three-Person Basketball Tournament.
Zolboo Enkbold from the Mongolian Embassy in China expressed his excitement at participating in matches with all the teams, and commended the activity for being carefully organized with a warm atmosphere geared toward the enrichment of the cultural and sports lives of expatriates in Beijing.
Alexandre, a Mozambican student from the USTB, said it was his first time to participate in a three-player basketball tournament in Beijing, for which he was very happy, and he hoped to continue to actively participate in similar activities in the future.
The Monetary Policy Committee of the People's Bank of China (PBC), China's central bank, has been reshuffled, with Wu Qing, new head of the China Securities Regulatory Commission, and another PBC official and two economists becoming new members.
Meanwhile, Yi Huiman, former CSRC head, and three others withdrew from the committee, according to the PBC website on Tuesday.
This is the first committee reshuffle following the amendment of some rules for the Monetary Policy Committee on January 18.
The amended rules added that the committee will adhere to the leadership of the Communist Party of China, improve the modern monetary policy framework and report important matters to the CPC Central Committee and the State Council, the cabinet.
The Monetary Policy Committee is a consultative body for the making of monetary policy by the central bank, whose responsibility is to advise on the formulation and adjustment of monetary policy and policy targets within a certain period, application of monetary policy instruments, major monetary policy measures and the coordination between monetary policy and other macroeconomic tools.
The committee plays its advisory role on the basis of comprehensive research on macroeconomic situation and the macroeconomic targets set by the central government, according to an introduction on the PBC website.
The Monetary Policy Committee performs its duty by convening the regular quarterly meeting. On December 27, the committee held its fourth-quarter meeting, stressing that China will step up the implementation of the new monetary policy that it put in place.
The adopted policies include maintaining reasonable and sufficient liquidity, guide reasonable credit growth and a balanced credit supply, and keep the scale of social financing and money supply in line with the set targets for economic growth and consumer price levels.
China is ramping up support for the development of new-energy vehicles (NEVs) and accelerating technology innovation to consolidate the industry's advantage, officials said at an industrial forum on Saturday.
The NEV industry in China is expected to see continued growth this year, building on its success in 2023, thanks to a competitive edge in the industry chain, experts said.
Zheng Shanjie, head of the National Development and Reform Commission, the country's top economic planner, called on key NEV manufacturers to focus on quality improvement, cost reduction, technological innovation and international cooperation to consolidate and expand their development advantages. Zheng made the comments at the 2024 China EV 100 Forum held in Beijing on Saturday.
The development of China's NEV industry demonstrates economic vitality, manufacturing improvement and China's commitment addressing climate change, Zheng said.
The forum, which marks its 10th anniversary this year, witnessed every milestone in the industry's development.
In the past decade, China's production and sales of NEVs have increased from 75,000 to 9.5 million annually, adding a new bright spot to China's manufacturing industry, Deputy Minister of Industry and Information Technology Shan Zhongde said at the same forum.
In 2023, production of NEVs exceeded 9.58 million, up 35.8 percent year-on-year. Sales hit 9.49 million, up 37.9 percent, while exports soared 77.6 percent to more than 1.2 million, according to the China Association of Automobile Manufacturers (CAAM).
In the first two months of 2024, production reached 1.252 million, up 28.2 percent, and sales reached 1.207 million, up 29.4 percent, according to the CAAM.
Addressing the development of Chinese NEVs, Shan said it is necessary to uphold fair and transparent economic and trade rules on the international level, while strengthening the development of vehicle chips and basic software, and continuously improving the low-temperature adaptability, safety and charging convenience of NEVs on the domestic front.
The remarks by senior Chinese officials clarified the strong support for the development of NEVs at the national level, Wu Shuocheng, a veteran automobile analyst, told the Global Times on Sunday.
In the domestic market, encouraging policies for trade-ins will continue to benefit buyers. Despite uncertainties in EU and US import policies, Chinese NEVs remain competitive in the overseas market, Wu said.
By establishing research and development facilities, sales centers and even complete vehicle factories in overseas markets, Chinese electric vehicles are effectively mitigating risks, Wu noted.
Shan said that the Ministry of Industry and Information Technology (MIIT) will enhance support for the high-quality, systematic and overseas expansion of China's NEV industry.
The ministry will tackle key technologies such as batteries, chips, operating systems and autonomous driving in order to enhance the resilience and competitiveness of China's NEV industry. It also pledged to improve the policy system to support leading enterprises to grow larger and stronger while phasing out outdated companies.
The MIIT also vowed to expand NEV trade-ins, consumption of connected vehicles and trials of high-level autonomous driving in urban areas. The ministry is also committed to assisting NEV companies to expand overseas and it welcomes global auto companies to invest in China.
China's NEV advantages lie in its large-scale production capabilities, low costs, high quality, accumulated experience and leadership in smart technology, Zhang Xiang, visiting professor at the Engineering Department of Huanghe Science and Technology University, told the Global Times on Sunday.
The next stage of development should be focused on core technological innovation such as intelligent connectivity and autonomous driving, as well as advances in automotive chips, operating systems and software, Zhang said.
The Government Work Report delivered at this year's national legislature session stressed the role of the automotive industry in stimulating consumption and enhancing the country's industrial competitive advantage.
China will boost spending on intelligent connected NEVs, consolidate the advantage of connected vehicles and build more charging facilities, among the tasks for 2024, according to the Government Work Report.
Chen Binhua, a spokesperson for the Taiwan Affairs Office of the State Council, on Wednesday criticized the Democratic Progressive Party (DPP) authorities in Taiwan for jeopardizing the island's chip industry by catering to external forces. It comes amid growing concerns on the island about the future of the critical industry.
At a press briefing, Chen was asked to comment on a recent article about how the US' so-called CHIPS Act could hurt Taiwan's chip industry.
Chen pointed out that the article reflects serious concerns about the DPP authorities catering to external forces without any principle or bottom line, as well as concerns that Taiwan's key industries are being hollowed out, that core enterprises have been suppressed, and competitive advantages have been weakened.
"If Taiwan's economic autonomy in industrial development and its sway in the global production and supply chain are lost, how much 'family fortune' will it still have? In the end, it will only become an 'abandoned piece' instead of a 'chess piece,'" Chen said. "So the views of these industry experts are by no means alarmist."
The article was published jointly on February 26 by three leading figures in Taiwan's chip industry, cautioning that the US "CHIPS Act" could undermine Taiwan Semiconductor Manufacturing Co (TSMC) and strangle the island's semiconductor industry.
In the article, "How America's CHIPS Act hurts Taiwan," Burn Lin, former R&D vice president of TSMC, pointed out that "the US CHIPS Act is so poorly designed that it is likely to undercut Taiwan's TSMC, the world's leading semiconductor manufacturer, and leave the entire industry even more vulnerable than it already is."
The article, which was published by Project Syndicate, was also signed by many other experts from Taiwan and has sparked heated discussion in political and business circles in the island, with some pointing out that the DPP authorities are using semiconductor manufacturers like TSMC as a bargaining chip by forcing them to build factories abroad in order to attract external forces to "support Taiwan."
The so-called CHIPS and Science Act, which was approved by the administration of President Joe Biden on August 9, 2022, plans to hand out $52 billion in subsidies to lure semiconductor manufacturers to relocate to the US, with the aim of maintaining and advancing its scientific and technological edge.
Taiwan's semiconductor industry has become a key target for US officials and TSMC has been effectively coerced to step up building plants in the US.
Chinese officials have repeatedly slammed the protectionist US moves and crackdown measures in the chip industry, saying that US export controls and suppression of Chinese semiconductor companies are acts of economic bullying.
The success of China's electric vehicles (EV) is "the success of globalization," and Chinese-made EVs are internationally popular due to their good quality, production capacity and cost controls, instead of subsidies, a Foreign Ministry spokesperson said on Wednesday.
"We hope that the EU side will abide by WTO rules, honor its commitment to market openness, respect the laws of the market economy and the innovation efforts of Chinese enterprises, prudently use trade remedy tools and jointly safeguard China-EU economic and trade cooperation," Wang Wenbin, the spokesperson, said during a regular press conference, when asked about the EU's probe into Chinese EVs.
Across the global EV supply chains, the interests of all parties are intertwined, Wang said, adding that Chinese EVs have contributed to global green and low-carbon development.
As to China's anti-dumping investigations into imported brandy from the EU, Wang reiterated China's commitment to a high level of opening-up and upholding the principles of the market economy and WTO rules, and this will not change.
"We are ready to provide an open, inclusive, transparent and non-discriminatory business environment to foreign companies, including those from the EU, to conduct trade and investment cooperation in China," Wang said.
The Ministry of Commerce (MOCFOM) announced on January 5 that it will launch an anti-dumping probe into some imported brandy from the EU. The investigation was initiated at the request of Chinese companies, an official in charge of the MOFCOM's Trade Remedy and Investigation Bureau said.
Upon receipt of the application, the MOFCOM examined it in accordance with Chinese laws and regulations and in compliance with WTO rules, and it held that the application met the requirements for filing an anti-dumping investigation, the official said.
"We will conduct the investigation according to relevant Chinese laws and regulations, as well as WTO rules, in an open and transparent way and safeguard the rights of all stakeholders in the process," Shu Jueting, a spokesperson for the MOFCOM, said on January 12.
China's anti-dumping investigations accord with China's legal framework and the WTO guidelines, and a decision will be based on factual evidence. However, EU investigations into Chinese EVs have not followed the WTO rules and they smack of trade protectionism, Chinese analysts said.
According to the WTO's anti-subsidy regulations, the EU is required to first demonstrate that Chinese EVs have received subsidies and that this has affected local manufacturers. However, the bloc has not proved any receipt of subsidies nor shown that local EU production of EVs has been affected by imports from China, Sun Yanhong, a senior research fellow at the Institute of European Studies under the Chinese Academy of Social Sciences, told the Global Times.
Some critics in the EU claim that China-made EVs sold in the EU market have a clear price advantage over those made by local manufacturers, but they never mention that Chinese cars sold in the EU are about twice as expensive as those sold in China, industry insiders pointed out.
They added that components such as motors, controllers and chargers used in China-made EVs come from European companies, including but not limited to Bosch, Siemens and Alstom. Chinese EVs producers are also working with European automakers to promote technological innovations.
For example, Bosch on Monday won the approval to start construction of the second phase of a production base for new-energy vehicle components and a self-driving research and development (R&D) center in Suzhou, East China's Jiangsu Province, the Suzhou Industrial Park announced on its WeChat account on Tuesday.
Total investment for Bosch's Suzhou production and R&D base will exceed $1 billion. Phase one of the project is expected to begin trial production in September, and formal mass production will be achieved in early 2025.
Analysts said that opening-up has promoted the development of China's EV industry. China has maintained an open and welcoming attitude toward EV companies from around the world, including Volkswagen and Tesla.
China's central government has unveiled this year's GDP growth target, at about 5 percent, on par with last year's rate. The target has made market investors rejoice, giving them higher confidence in an across-the-board revival of China-related equities and other assets in the coming months. As expected, the country's A-share market has held on to strong gains in the past two weeks of robust trading.
But not all are elated with China's growth target. A good number of Western politicians and media pundits have claimed it is "too aggressive and lofty," a goal that may not be pulled off. Some of them are annoyed and disgruntled with China's resolve, and have started to curse the Chinese economy, predicting it will "capsize" and never close the current gap with the GDP of the US in nominal terms.
It's laughable and mean to diminish and denigrate others' economies. Last year, amid the Western media chorus of "China's economic collapse," the country's GDP expanded by 5.2 percent over a year earlier, with yearly added output value of more than 6 trillion yuan ($835 billion).
Compared with 2023, when China had just bid goodbye to the protracted and distressing three-year pandemic, there are better and riper conditions now to pursue a growth rate of about 5 percent in 2024. The lingering impact of the COVID-19 pandemic has been largely eliminated, and nearly all the fundamentals of the economy have been rehabilitated and shored up, which paves the way for a possible takeoff this year.
The central government is ready to fuel the economy in 2024 with a volley of growth-reinforcing stimulus policies, to be whipped up by a new mandate - brewing new quality productive forces to help build a stronger and greater country.
China is currently leading in the global endeavor in green and renewable energy, in electric vehicle and high-end battery development, in high-speed mobile telecom networks and railway roll-outs, in autonomous driving, deep space, modern robotics, artificial intelligence, quantum computing and other advanced sectors of information technology research and development. Naturally and consequentially, the country will be a front-runner in finding and creating new quality productive forces.
During a press conference held at the sidelines of the second session of the 14th National People's Congress recently, China's leading economic planners and policymakers discussed the magnitude of macro stimulus and overall policy direction for this year and beyond.
Collectively, officials displayed elevated confidence before global audiences that they are upbeat about realizing this year's growth targets, despite facing worldwide volatility including wars, conflicts, rising economic protectionism and technology isolation.
As to whether the GDP growth target of 5 percent is attainable, Zheng Shanjie, head of the National Development and Reform Commission, said it was set following the central government's comprehensive assessment, "taking into account current and long-term needs and possibilities" and the target is "a positive goal reachable with a jump," meaning through earnest hard work.
Lan Fo'an, the finance minister, and Pan Gongsheng, the governor of the People's Bank of China, the central bank, pledged more fiscal and monetary policy support to boost the economic revival. Commerce Minister Wang Wentao announced plans for a large-scale national trade-in event this year, aiming at replacing outdated manufacturing equipment, worn-out cars and home appliances to propel domestic consumption.
Wu Qing, head of the China Securities Regulatory Commission, vowed to significantly tighten capital market oversight to prevent irrational volatility.
Fiscally, China plans to issue an additional 3.9 trillion yuan in local government bonds in 2024 to support local government coffers, providing more financial resources for infrastructure construction and rural revitalization, including an initiative to dole out more welfare benefits to elderly rural residents.
The central government will issue ultra-long special treasury bonds starting this year and over each of the next several years to ramp up fiscal stimulus to support overall economic growth.
Monetarily, the central bank said it still has sufficient policy room in its toolbox. In contrast to other major economies, China isn't burdened by high inflation, which enables the central bank to maintain a lower interest rate policy and provide ample market liquidity. This will benefit Chinese business expansion, aid consumer spending and ratchet up overall economic activity in 2024.
Last month, the central bank reduced the benchmark five-year interest rate by 25 basis points. This move aims to ease the long-term burden on enterprises and is expected to significantly benefit the real estate sector, as the mortgage rates were lowered accordingly.
The economy has gotten off to a very strong start, as evidenced by steadily rising foreign trade. In the first two months, China's merchandise exports rose 10.3 percent year-on-year.
Meanwhile, the number of tourists who ventured out during the eight-day Chinese Lunar New Year holidays marked a staggering increase of 19 percent compared with the pre-pandemic number in 2019.
The upbeat figures show China's economic activity is rapidly gaining pace. With the government's enhanced fiscal and monetary stimulus, backed up by an improving stock market performance, the momentum for growth will accumulate and consistently build.
Provided China continues to focus on tech innovation, foster new quality productive forces and stick to the opening-up policy, typically helping its Belt and Road Initiative partners and the Global South to develop and prosper, the central government's development blueprint for 2035 - when GDP is to double from the 2020 level - isn't out of reach at all.
China's A-share market has seen a sustained rebound recently, with multiple overseas financial institutions voicing intentions to boost their holdings. Analysts suggest that the influx of foreign capital serves as a barometer, and they believe that concerted measures will keep driving economic growth and market recovery in 2024.
"Global funds are returning to China stocks," Bloomberg reported on Tuesday, citing Morgan Stanley analysts.
Outflows from Chinese equities slowed into the end of February and regional active managers started adding growth and technology stocks, analysts said.
China's stock market is now highly attractive from a valuation standpoint, making A-shares particularly appealing, Zhu Liang, investment director of AllianceBernstein Fund Management Co, said in a note introducing the company's investment outlook in 2024.
China's listed companies are expected to maintain profit growth in 2024. It is estimated that the earnings per share of A-shares will increase about 17 percent this year. If valuation multiples remain unchanged, the profit growth suggests that the Chinese stock market should perform quite well, Zhu said.
Kinger Lau, chief China equity strategist at Goldman Sachs, and his team maintain a cautiously optimistic outlook on the Chinese stock market, anticipating that economic improvements will drive a rebound in corporate profits. Given that A-share valuations are currently at historic lows, the team maintains its "overweight" stance on A-shares, according to the company's 2024 investment outlook released via its official WeChat account in December 2023.
Goldman Sachs expects 10 percent profit growth for shares in the MSCI China Index and 11 percent profit growth for companies in the onshore CSI 300 Index in 2024.
Capital from the Middle East has continued to bet on Chinese assets, with investments spanning multiple popular sectors including new-energy vehicles, petrochemicals, pharmaceuticals, steel and more.
China-based E Fund Management and leading Saudi Arabian asset manager Riyad Capital have recently signed an agreement to exchange expertise and cooperate in local investment areas.
Analysts had previously expected that capital from the Middle East would increase its investment in the Chinese capital market, which could potentially bring an annual inflow of funds of about 20 billion yuan ($2.78 billion) to A-shares in the Chinese mainland and H-shares in the Hong Kong Special Administrative Region, according to financial publication stcn.com.
After hitting a low point of 2,635 on February 5, the benchmark Shanghai Composite Index rebounded and gained for eight straight days. It has remained above 3,000 points in recent trading sessions.
In February, A-shares reversed the trend of continuous net outflows of foreign capital seen in the previous six months. Northbound capital - overseas money flowing into China's A-share market via the Hong Kong stock exchange - increased holdings in the A-share market by a substantial 60.74 billion yuan, reaching a 13-month high.
The net buying volume of northbound capital in A-shares for the month already surpassed the total for the entire year of 2023, financial data provider Wind showed.
"The downturn in the A-share market last year deviated from China's normal economic fundamentals and the previous continuous net outflow of northbound capital was abnormal," Hu Qimu, a deputy secretary-general of the digital-real economies integration Forum 50, told the Global Times on Wednesday.
Some foreign funds that engaged in malicious short-selling underestimated not only China's resolve to stabilize its capital market but also the resilience of its economy, Hu noted.
The underlying stability of the capital market should be enhanced, according to the Government Work Report submitted to the second session of the 14th National People's Congress on Tuesday.
This sets a clear direction for the reform and development of the capital market this year, addressing the concerns of all market participants, including investors, about the current state of the capital market, experts said.
Moreover, the People's Bank of China (PBC), the country's central bank, will continue to strengthen the connectivity between domestic and foreign financial markets, attracting more overseas investors to the country's markets, PBC Governor Pan Gongsheng said at a press conference on Wednesday.
As of the end of January, foreign investors had been net purchasers of Chinese bonds for 12 consecutive months, with cumulative net purchases of 1.8 trillion yuan, Pan said.
Looking at the global landscape, the US Federal Reserve is expected to start a rate-cutting cycle by the second half of this year, which is likely to provide support for the yuan's performance this year. It is estimated that foreign capital inflows into A-shares for 2024 could range from 100 billion to 200 billion yuan, Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co, told the Global Times on Wednesday.
TikTok is in the spotlight once again, as German Chancellor Olaf Scholz was quoted by media outlets as saying that he wants the government to open an account on the Chinese video-sharing app. It is hoped that Western economies can take this as a chance to promote positive interactions with TikTok and foster a fair, transparent and predictable environment for Chinese companies.
The West's suppression of TikTok is a sheer act of discrimination in the guise of so-called national security. A spokesperson for the German government said on Friday that Berlin still needed to check the situation thoroughly before launching an account, and members of the federal press office could not access the app on their government phones, Reuters reported.
This situation is unlikely to change immediately, but efforts should be made to tackle discrimination. At the very least, Germany should lift its ban on TikTok and allow government employees to have the app on their work phones.
A ban on TikTok won't solve so-called data privacy problems. On the contrary, it will bring new problems and challenges.
First, if TikTok, the world's most popular video-sharing app, is blocked from Western countries, content creators will suffer significant losses. With TikTok, some influencers are earning substantial amounts of money, many of whom are young people. The internet provides not only a way to cheaply obtain entertainment, but also offers economic opportunities for young people who are more willing to accept new ideas and changes.
Second, protectionist sentiment won't help the internet economy, and will instead impede its growth. A ban on TikTok will restrain market competition, and slow down the development of the internet economy.
Reuters said in its report that parties such as the Alternative for Germany are already leveraging the TikTok platform to connect with younger voters. However, whether it's a political party in Germany or in other Western countries, if it wants to win young voters, it is not enough to just open a TikTok account. It should give a boost to the internet economy, encourage fair competition, and stop unreasonable suppression of advanced enterprises, including TikTok.
Germany should adopt a strategy to encourage TikTok to invest. Germany's economy has had a rough year: its GDP shrank by 0.3 percent in 2023. Germany, at the forefront of industrial innovation for decades, is struggling to adapt to the digital age.
The German economy needs to find new growth drivers. The development of new productive forces can cultivate new economic growth drivers and competitive advantages, and provide new impetus for its economy.
In countries like China, the commercialization of internet technologies is pushed by big enterprises such as TikTok's owner ByteDance. Their commercial success is an example of how the commercialization of internet technologies is speeding up.
Industry 4.0 represents the fourth industrial revolution, driven by the fusion of digital technologies with traditional manufacturing processes. Germany should strengthen cooperation with China in the field of Industry 4.0, which will help leverage Germany's industrial advantages.
If Germany falls into Washington's narrative trap of "national security" and continues to suppress TikTok and other Chinese enterprises, it will miss important cooperation opportunities with China's internet industry.
It will be a test of Germany's wisdom to see if it can capitalize on business opportunities arising from bilateral cooperation with Chinese internet companies and make the cooperation a positive factor for its economic restructuring.
From this perspective, whether the German government will open a TikTok account is not the most important thing. For the German economy, the most important thing is that Germany should lift its ban on TikTok, create and maintain a fair, competitive business environment for Chinese internet enterprises, and encourage both sides to strengthen cooperation in the fields of the internet and the digital economy.
