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Chinese fighters Zhang Weili, Yan Xiaonan to compete for UFC title

Photo: Courtesy of the UFC

Reigning UFC women’s strawweight champion Zhang Weili will try to defend her title against fellow Chinese contender Yan Xiaonan in what promises to be an electrifying clash of talent as the duo meets in a UFC 300 bout on Sunday.

This marks the first time in UFC history that a championship bout for the coveted gold belt will take place between two Chinese athletes, adding an extra layer of significance to the event.

“This marks a new stage for Chinese MMA. It’s the first time two Chinese female athletes will stand in the international octagon to compete at the highest level (a championship bout) and showcase their skills,” Zhang said.

“This is definitely progress for Chinese MMA and will attract more attention to the UFC.”

After the fight was announced, there was much discussion online, with some netizens saying they felt uneasy about Chinese athletes facing each other. Some even expressed concern about whether there would be mercy between the compatriots.

“I think this match is not much different from any other match. I have fought so many fights, and I approach each one with the same seriousness, striving to give my best performance in the ring,” Zhang told reporters.

“We are all professional athletes, and there are no mental barriers just because we are compatriots.”

Zhang remains the more favored fighter in the polls before the fight. A poll on a domestic combat sports website showed a staggering 96 percent support rate for Zhang.

Both Zhang and Yan, who are 34, have been preparing diligently for this moment, each aiming to showcase not only their individual skills but also their resilience on the global stage.

The two fighters have a history that dates back a decade, having crossed paths in the MMA scene and even sharing a training coach in the past.

Despite their familiarity with each other’s styles, Zhang remains undaunted, emphasizing that both fighters have evolved over time, making predictions difficult.

Zhang expressed her excitement about facing Yan, whom she describes as a dedicated and formidable opponent.

“Many people may think that Xiaonan lacks ground techniques, but I believe her defense and resilience are excellent,” Zhang told reporters.

“Whether it’s on the ground or in defense against takedowns, she does very well. This time I saw her practicing wrestling before the fight, and I believe she will improve.”

In Zhang’s eyes, every opponent is her teacher.

“Xiaonan is my teacher. I can learn a lot from her… Continuous improvement through opponents is a good thing,” Zhang said.

“I think I have only scratched the surface and there is still a lot of potential to explore. Many things are not understood thoroughly yet, and they require continuous pursuit and effort.”

Zhang said she is confident in her own abilities and believes that their bout will not only be a display of technical prowess but also a testament to the resilience and fortitude of Chinese female athletes.

“I hope I can play a positive role in the development of Chinese MMA, encouraging more people to join in. I am very happy and honored to be part of this,” Zhang said.

Japan should be wary in chip cooperation with hegemonic US: analysts

A chip manufacture machine Photo: VCG

Japan should be wary in its semiconductor cooperation with the US, which is seeking hegemony, Chinese observers said on Wednesday. If it tries to hit China at the bidding of the US, Japan’s industries risk being victimized, analysts noted.

The remarks came as Japanese Prime Minister Fumio Kishida said on Tuesday (US time) that he saw opportunities for more collaboration with the US in next-generation computer chips. Kishida and US President Joe Biden are scheduled to meet on Wednesday.

Major agreements expected to come out of the meeting include a $2.9 billion deal by US tech giant Microsoft to expand its cloud and artificial intelligence infrastructure in Japan, and a partnership between Japanese chip foundry venture Rapidus with a US company in the research and development of next-generation chips, according to Reuters.

Although not mentioning China directly, Kishida said on Tuesday that “it is increasingly important for our two countries to build resilience in our economies and together drive growth for the global economy.”

Japan’s pledge for closer semiconductor cooperation with the US was coupled with its push to produce chips domestically and Washington’s escalating crackdown and containment strategy against China in the field of semiconductors by pushing its allies.

In a recent move, the US is reportedly pushing Netherlands-based chipmaking giant ASML to stop servicing some equipment it has sold to Chinese customers, in blatant violation of business contracts.

However, Chinese observers said Japan needs to be careful in its chip cooperation with the US or risk facing consequences.

Ma Jihua, a veteran telecom observer, told the Global Times on Wednesday that the US has been trying to woo its allies including South Korea and Japan to join its crackdown on the Chinese semiconductor sector.

South Korean chip companies have become victims of the US containment of China, seeing a sharp drop in the export value of semiconductor tooling machines while Japanese and Dutch exports to China rose in 2023, according to South Korean newspaper Dong-a Ilbo.

Chinese analysts said that any cooperation between Japan and the US should not target any third party, and efforts in strengthening high-tech industry supply chain resilience should not become a disguise for technology containment against China.

Da Zhigang, director of the Institute of Northeast Asian Studies at Heilongjiang Provincial Academy of Social Sciences, told the Global Times on Wednesday that it seems apparent that Japan’s partnership with the US in the high-tech field has a target in mind, which is regrettable.

Da said that if detailed curbs or export technology bans emerge from its partnership with the US, Japan will face mounting risks in its trade with China, which totaled $317.99 billion in 2023 per customs data.

“For Japan, its interests lie in enhancing mutually beneficial trade and economic ties with its Asian neighbors, rather than colluding with external forces to crack down on its major trading partner,” Da said.

Japanese semiconductor companies at the upstream of the industrial chain may suffer if the Japanese government chooses to work with the US to disrupt global semiconductor industrial and supply chains, noted Da.

A horse-faced fashion

Mamianqun, or horse-faced skirt, is a traditional Chinese fashion that has exploded in popularity in recent years, thanks in large part to a clothing production base in Shandong province.

What is the history behind Mamianqun, and how did it become a trending fashion? Watch the video to find out.

China’s tourism booms during Qingming Festival holidays, reflecting nation’s strong vitality and potential

Passengers line up to board a high-speed bullet train at a railway station in Nanjing, East China’s Jiangsu Province, on April 6, 2024, the last day of the Qingming Festival holidays. About 119 million domestic tourist trips were made during the holidays. Photo: VCG

China’s consumption market during the just-ended Qingming Festival holidays showed better-than-expected performance, underscoring the strong vitality and potential of the economy while injecting new momentum in driving stable economic recovery.

During the Qingming Festival holidays, lasting from Thursday to Saturday, ticket bookings for popular domestic scenic spots surged by 5-fold compared with the same period last year, noted a report from a Chinese online travel agency Qunar sent to the Global Times on Saturday.

About 119 million domestic tourist trips were made during the holidays, up 11.5 percent from the same period in 2019, according to the Ministry of Culture and Tourism. The trips were estimated to bring in 54 billion yuan ($7.56 billion) in tourist revenue, an increase of 12.7 percent from 2019.

Many tourists kicked off the holidays with short-distance journeys. Notably, Tianshui in Northwest China’s Gansu Province and Kaifeng in Central China’s Henan Province – which have become internet sensations lately – saw the amount of hotel bookings jump by 12-fold and 4.5-fold respectively, according to Qunar.

Crowds appeared across tourist spots in China as many struggled to reach their destinations. A Beijing resident surnamed Li told the Global Times that his family has to wait for about two hours to park the car at the Juyongguan section of the Great Wall in Beijing on Thursday because there are so many tourists.

According to film ticketing platform Maoyan, the box-office revenue has reached 823 million yuan for the holidays, surpassing last year.

The service sector now contributes to around 60 percent of China’s economic growth. The robust recovery of tourism, hospitality and transport sectors will boost the overall recovery of domestic consumption and contribute to stable economic recovery, Xu Xiaolei, a marketing manager at China’s CYTS Tours Holding Co, told the Global Times on Saturday.

The potential of the consumption market is set to be further unleashed during the upcoming May Day holidays, Xu said, noting the surge of China’s consumption market reflects the strong vitality and potential of the economy.

Stable recovery

In addition to the robust recovery in the cultural and tourism sectors, the country’s manufacturing purchasing managers’ index (PMI) posted better-than-expected result in March, indicating notable increase in internal demand.

Analysts said that the world’s second-largest economy got off to a good start in the first quarter of 2024, laying a solid foundation for achieving the pre-set annual GDP growth target of around 5 percent.

“Between January and March, China’s economic growth rate is expected to reach around 5 percent on a yearly basis, supported by a couple of factors including consumers’ increased willingness to spend, stable infrastructure and manufacturing investment as well as improved external environment,” Wen Bin, chief economist from China Minsheng Bank, told the Global Times on Saturday.

There are multiple aspects where Chinese authorities can step up efforts in the second quarter to bolster the upswing recovery of the economy, according to Wen.

This year’s Government Work Report outlined an array of measures to boost growth this year. According to the report, a proactive fiscal policy and a prudent monetary policy will be continued in 2024, and a series of tasks will be taken to modernize the industrial system and develop new quality productive forces at a faster pace.

Wen said the central bank is expected to strengthen efforts to enhance “precision and effectiveness” of monetary policies so as to inject new momentum to the high-quality development of the economy. On the one hand, efforts should be made to boost economic structure adjustment, economic transformation and upgrade and the transition of old and new momentums, while on the other hand, the authorities should better meet reasonable consumption and fund-raising needs with targeted measures, he said.

Cao Heping, an economist at Peking University, said he is optimistic about the country’s GDP growth rate in the first quarter. “The development of new quality productive forces has triggered the new driver of China’s development,” Cao told the Global Times, noting the country will remain the main driver of world economic growth in 2024.

Positive prospect

Driven by China’s stable economic recovery so far this year, foreign-funded companies have voted with their feet to briskly expand investment in China for unprecedented opportunities amid the country’s high-level opening up.

In January, US retail giant Costco Wholesale opened a new store in Shenzhen, Guangdong Province, which is the sixth Costco store on the Chinese mainland. The number of registered members surpassed 140,000 on the first day alone, setting a record globally, according to local media outlet Shenzhen Daily.

On March 21, US smartphone maker Apple inaugurated its largest retail store on the Chinese mainland in Shanghai, with Apple CEO Tim Cook opening the doors of the new store and welcoming Chinese consumers.

During a meeting with Chinese Commerce Minister Wang Wentao on March 22, Cook said China is an important market with a rich talent pool and innovation vitality, and a crucial supply chain partner for Apple. He reaffirmed that Apple is committed to a long-term development in China and plans to increase investment in China’s supply chain, research and development, and marketing.

In order to steadily promote high-level opening-up and make greater efforts to attract and utilize foreign investment, the General Office of the State Council issued an action plan on March 19. The action plan proposes 24 measures across five aspects, including expanding market access, enhancing appeal to foreign investment and fostering a level playing field.

The Chinese government is cultivating new quality productive forces, signifying the country is on the correct development trajectory, John Ross, a senior fellow at the Chongyang Institute for Financial Studies, told the Global Times in a recent interview in Beijing.

Based on observations and research over the past 30 years related to China’s economy, there is no reason why China cannot meet its 2024 GDP growth target, and undoubtedly, the country will remain the main driver of world economic growth as it has for the past 40 years, he said.

Amway committed to investing in China, for China: company CEO Milind Pant

Amway‘s CEO Milind Pant speaks at the China Development Forum 2024. Photo: Courtesy of Amway

GT: At the annual two sessions, which was just concluded, the Chinese government emphasized the need to continue to attract foreign investment. How do you view the prospects of China’s economy and the business environment in China?

Pant: Premier Li Qiang shared with us the progress of high-quality development and stable economic growth. We are confident of China’s long-term growth potential. Our business in China is our largest and fastest growing, and we are committed to continuing to invest in that business.

GT: Does your company have any plans to increase investment in China this year? And what specific measures will be taken in 2024?

Pant: Amway is in 100 markets across the world. Among them, China is a largest and fastest growing and we will continue investing in China. We’re investing in our manufacturing in Guangzhou and modernizing it, upgrading it and expanding it. We are investing in health and nutrition experience centers across China, across cities. We are investing in data and technology, and we continue to explore other areas for investment, like looking for a new organic farm in China that focuses on traditional Chinese medicine.

GT: Currently, the public is increasingly interested in health products and services. How do you view the development trend of the big health industry?

Pant: We are very grateful for the “Healthy China Initiative” and for the opportunity Amway has to be a part of it. Health is the foundation; health is wealth. In that regard, prevention is the most important first step, and that’s what Amway focuses on. We empower 200,000 micro entrepreneurs and business owners to help people with a healthy mindset, health knowledge and healthy lifestyle.

GT: As we know, you have conducted research on Oriental health practices. Could you provide an introduction? How do you maintain a healthy lifestyle?

Pant: I love the Chinese culture. I love the philosophy and traditional Chinese medicine which is about harmony and being holistic. I have incorporated that in my own life, which is starting with a healthy breakfast in the morning. We have a morning nutrition that I take every day, consisting of seven nutrients. We cooperate with the Chinese Nutrition Society to establish authoritative new standards for Chinese dietary science.

Whenever I get a chance, I exercise, I focus on sound and long sleep even while I’m traveling across countries.

In the “Healthy China Initiative,” we have published a research paper and are partnering on initiatives for a healthy China and healthy cities. For example, we have mayors from eight cities in China participating in the China Development Forum to discuss topics related to healthy China and healthy cities.”

GT: Today, you have participated in the release ceremony of the “2024 National Health Lifestyle Intervention and Impact Research Report,” which emphasizes the importance of a healthy community. Amway has many successful practices in this area. Could you please share some of your experiences?

Pant: If you look across the world, the gap between lifespan and health span is growing and Amway wants to help people live healthier and happier lives for longer.

So the study that you just mentioned, it provides recommendation and an action plan and what to do next. It focuses on prevention, health knowledge, and health awareness, the importance of community building, then of course, importance of micronutrients, proteins and other aspects.

GT: We learned that during your trip, you have met with the US Ambassador to China, and you plan to meet the Vice Minister of SAMR and the President of the Friendship Association. What have you learned from the meeting and what are your expectations?

Pant: I look forward to a visit like this, to be able to meet as many people as possible. As you have mentioned, the friendship association, SAMR and the US ambassador, we want to be of help in growing people-to-people connections between the US and China. We are confident about the Chinese economy and its long-term growth potential. And we are committed to continuing to invest in China, for China.

Global Times

Wipro Group embraces China’s favorable business climate, paves the way for high-quality development

Wipro (Guangdong) consumer care Co.LTD. Photo: Courtesy of Wipro Group

Since its establishment in 1945, Wipro has evolved into a global conglomerate boasting a diverse portfolio of businesses, especially since 1984. The group is present in more than 60 countries and regions, encompassing more than 37 brands covering personal care, home care, men’s grooming, health, spices and packaged foods. Among these, the Group’s Enchanteur brand has been deeply engaged in the Chinese market since the 1990s. At present, the Group’s companies in China have developed into a brand matrix, commanding significant market shares in various segments. Notably, they hold the third market share of shower gel, the second market share of beads and soap, and the second brand of laundry detergent in South China, providing high-quality personal care and home care solutions for millions of Chinese consumers.

Nagender Arya, President East Asia & Business Development of Wipro Group, stated: “We have always believed in the Chinese market, with the continuous upgrading of the business environment in Guangdong Province and the overall supply chain of consumer goods. On the one hand, the group has focused on tapping the growth potential and innovation ability of Chinese local brands since 2016. We have invested and built the group’s most advanced production and research base in Guangzhou Zengcheng Development Zone, including the introduction of international management system, production equipment and the establishment of talent training system, with a total investment of more than 258 million yuan ($35.69 million). On the other hand, we are committed to tapping the potential of local consumption. The marketing research and development team has been focusing on the unmet needs of local consumers for a long time, integrating the formula advantages of local brands, using the efficient local supply chain to quickly bring out the new products, so that a number of traditional Guangdong brands will be injected with new vitality. For example, Pahnli laundry detergent and laundry capsule have become the second largest brand in South China with their unique sweet and soft clothing care formula. Zici shower gel, a traditional Guangdong brand, has been studying the traditional Chinese moisturizing ingredient – pearl – for 25 years, and has improved the purification technology of pearl essence. So far, one out of every five Guangdong families is using it.”

Nagender Arya (right), President East Asia & Business Development of Wipro Group, and Li Yinglin, CEO of Wipro (Guangdong) consumer care Co.LTD. Photo: Courtesy of Wipro Group

Wipro Group attaches great importance to the iterative upgrading capability of the Chinese market, which is the reason why Chinese manufacturing is increasingly important in the international market. In the past four years, the Group’s R&D investment and marketing investment in Chinese companies have increased, and the new products developed by the Chinese team are very interesting and close to the healthy and upward lifestyle of consumers. For instance, the introduction of Pahnli laundry detergent infused with Oolong tea fragrance, a pioneering concept in the industry, embodies Wipro’s commitment to innovative offerings catering to diverse consumer preferences. Moreover, Wipro acknowledges the transformative impact of China’s e-commerce innovations, marketing automation technologies, and robust supply chain capabilities, positioning the country at the forefront of these fields globally.

The senior management of the group is optimistic about the business environment in China, paying particular attention to the market in South China, following the strategic plan of China’s Belt and Road Initiative, the group will further support the overseas development of our Chinese mainland brand, from Hong Kong and Macao special administrative regions to Southeast Asia, to the Middle East and other Belt and Road countries.

According to Li Yinglin, CEO of Wipro (Guangdong) consumer care Co.LTD., the group firmly believes in the long-term growth potential of the Chinese market. Embracing the national high-quality development strategy, Wipro intensifies investments in domestic bases and green energy initiatives, catering to evolving consumption patterns in increasingly diverse markets. Moreover, Wipro actively engages in social responsibility endeavors, helping Shaoguan, Qingyuan and other areas, actively participating in the Red Cross donation activities and contributing to community welfare initiatives across Guangdong Province.

The management of Wipro (Guangdong) consumer care Co.LTD. thanks Guangdong’s superior international business environment and governmental support. Through its steadfast commitment to excellence and innovation, Wipro aims to bolster the high-quality development of China’s manufacturing industry, amplifying the global footprint of Chinese manufacturing prowess.

Apple reportedly seeking partnership with Baidu on using its AI solution

A flagship store of Apple in Shanghai Photo: VCG

Apple has reportedly sought a partnership with Chinese search engine Baidu to provide generative AI solution in its devices sold in China. The US tech company is introducing AI to augment its operating system and other software.

Media reports have suggested that Apple will use Baidu’s Ernie Bot – a generative artificial intelligence product for its iPhone 16, Mac OS and iOS 18 in China.

The Wall Street Journal reported last week that Apple had held preliminary talks with Baidu about using the Chinese company’s generative AI technology in its devices in China, though, “Apple’s discussions with Baidu are still exploratory,” the report said citing people familiar with the matter.

For Baidu, this will be a huge driving force, especially as competition among major large language model (LLM) application manufacturers in China becomes increasingly fierce, analysts said.

Similar to other AI services, Baidu’s Ernie Bot is accessible via an app accessible from the App Store. According to Baidu, after its LLM application announced its opening to the entire society on August 31, 2023, it quickly climbed to the top of the Apple Store’s free app rankings, becoming the first native Chinese AI product to top the app store rankings in China.

According to CNBC, Apple will lay the groundwork for a new AI App Store at Apple’s annual Worldwide Developers Conference in June.

“The company will offer its own AI services, but now it is in discussions with other companies to offer their AI apps for sale, possibly as part of an AI App Store,” an American Apple analyst was quoted as saying by CNBC on Monday.

The progress came amid Apple chief executive Tim Cook’s recent visit to China, when talking about the critical role China plays for the US tech giant. “There’s no supply chain in the world that’s more critical to us than China,” Cook said.

Facing the pressure of AI competition, Apple’s decision to cooperate with Chinese companies to accelerate AI application is a wise decision, Chinese experts said.

The fact that Chinese LLMs are favored by foreign tech companies indicates that the US’ approach to contain China’s technological development will not only restrict US investment in high-tech industry in China, but also expedite China’s tech self-reliance efforts, reducing China’s dependence on external supplies, the experts said.

“The ongoing cooperation between Apple and Baidu reflects the deep integration of the global industry chain,” Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Tuesday.

Also, major companies in the world are increasingly aware that going it alone is difficult to cope with the rapidly changing market, Wang said, adding that only partnership could bring more business opportunities and development space for them.

“Chinese companies like Baidu can also gain more opportunities through cooperation with Apple and others, achieving a win-win situation,” Wang said.

From Apple’s perspective, choosing a compliant and secure AI solution will help Apple better adapt to varied regulatory environment. At the same time, it also shows that Apple values the Chinese market and complies with its regulations, said Pan Helin, a member of the Expert Committee for Information and Communication Economy under the Ministry of Industry and Information Technology.

Wang said that Apple still needs China – the world’s largest smartphone and consumer electronics market – to sustain its growth momentum.

The US government has tried to contain the rise of Chinese high-tech sector in order to maintain its technology dominance in the world, experts said.

China is now actively developing cutting-edge AI technology including large language models, Wang said. “These tech innovations are expected to help China break the sci-tech blockade imposed by the US.”

Well calibration of fiscal, monetary policies to ensure 5% GDP growth in China

A view of the Lujiazui area in Shanghai Photo: VCG

A well-calibrated fiscal and monetary policy combination, being crafted and orchestrated by Chinese government, will help resolve the intrinsic problems hidden in China’s economy. An aggressive fiscal stimulus, coupled with proactive while prudent monetary policy, is generally thought to provide the economy with sustainable energy, shepherding it to grow by around 5 percent in 2024.

Independent economists of many international organizations give high marks for Chinese economic policymakers’ learning and wit in blending the monetary and fiscal policies in the past four decades to shore up rapid economic growth, and at the same time successfully resisted the cyclical pressures of inflation and deflation.

Entering 2024, China’s economy has to overcome the “scar effect” left by the COVID pandemic, including a relatively lackluster domestic consumption and a churning real estate market. Amid the lingering concern about another public health upheaval, the people now tend to snap shut their pocketbooks, and the millennials and generation Z are increasingly hesitant to raise children.

Under these circumstances, the traditional days of steadily growing consumer prices are gone, as China witnessed several months of negative CPI growths in the second half of 2023. To deal with the deflationary pressure, China’s central bank moved to reduce the bellwether loan prime rates (LPR) of both one-year and five-year lengths. Last month, the central bank went aggressive, cutting the five-year LPR by a full quarter percentage, which also has the effect of ramping up the country’s humdrum housing sales as mortgage rates are slashed too.

Meanwhile, the policy-makers decided to introduce proactive fiscal stimulus measures to fuel up public spending and economic growth.

In 2024 alone, at least 4.9 trillion yuan of central and provincial government bonds will be sold, with the proceeds to be channeled to building up important public infrastructure projects and fostering new quality productive forces to meet China’s massive market demand for home-grown advanced semiconductor chips, newest AI and algorithm innovations, nationwide 5.5-G mobile network coverage and highly efficient digital business platforms – able to catapult China’s economy to new heights of growth before 2050.

China is determined to “choose transition from high rates to high-quality of growth,” said International Monetary Fund Managing Director Kristalina Georgieva at the just concluded China Development Forum held in Beijing. In her speech to the event, she remarked that China has entered a new era of economic growth, and the country will continue to be a key driver of and a contributor to global economic growth in the coming years.

And, renowned US economist Nicholas Lardy, senior fellow at the Peterson Institute for International Economics and a former senior fellow at the Brookings Institution, told Chinese media that it is unwarranted for many media pundits in the West to disseminate the narrative that “China’s economy is collapsing” and faces a catastrophic outcome. Instead the economy is recovering, and last year’s 5.2 percent GDP growth “is impressive” among major economies.

For a long time, one of the important reasons why the Chinese economy has been able to scale new heights constantly by overcoming domestic difficulties and withstanding external headwinds is its deep understanding of economic laws, and the decision makers’ creative ways to exploring new and potent growth drivers, as well as the country’s firm determination to implement systemic restructuring, such as the country’s unswerving focus on developing clean renewable energies and battery-powered electric trucks and cars.

Georgieva thought highly of China’s green development. She described China as a global leader in deploying renewable energy with enormous potential, adding that China was making rapid progress in green mobility. China’s remarkable development success has delivered tremendous benefits to hundreds of millions of people in the world, she said.

Georgieva said that China’s high-quality development still has a bearing to deepening marketed-regulated reforms and giving priority to private sector growth. Deep structural reforms can enhance the conditions for entrepreneurship, innovation and economic performance. For example, a boost to government finances at the macro level could allow some tailored micro changes in taxation policies on businesses to foster fast growth of new enterprises, aligned with the central bank’s monetary policy to increase liquidity through reserve ratio reductions and interest rate cuts.

And, ramped-up government spending is a key component of aggregate demand that can be strategically important for economic development. China’s central government has announced the issuance of new ultra-long special treasury bonds in each of the following several years to focus on funding major national projects. No matter it is the development of industrial parks, transportation hubs, public services and highly educated and skilled Chinese work force, government spending is indispensable to underpin the growth of future strategic industrial lines.

The drivers of demand include household consumption of goods and services, private investment, government investment and net exports. As to augmenting China’s domestic consumption – a pivotal part of economic growth, the government has pledged to implement a national drive to provide incentives to encourage trade-in of old household appliances, cars and furniture with new models. The replacement of old automobiles, inefficient in fossil fuel use and polluting the air, with Chinese brand-new electric vehicles will also significantly help improve China’s urban environment. And, Chinese local authorities are encouraging citizens to have more family outings and leisure time to increase cultural and tourism spending.

Regarding foreign trade, despite the headwinds of geopolitical tensions which are affecting trade and capital flows, China saw a robust take-off of foreign trade in the first two months this year, largely thanks to the high-quality and low-price of made-in-China goods, like heavy machinery, home appliances, electric cars and a wide variety of electronic devices. In 2024, China’s total exports of goods will likely grow by 6-8 percent over 2023. Investment, domestic spending and export will guarantee the economy to expand by around 5 percent this year.

IMF head Georgieva said she is confident that China and the world can tackle the challenges this globe is now facing and they can always cooperate to create a more prosperous future in this century.

The author is an editor with the Global Times. [email protected]

US should play a responsible role in ensuring stable, smooth new-energy supply chain: FM spokesperson

The manufacturing line of a NEV factory in Southwest China’s Chongqing Municipality Photo: VCG

Ensuring a stable and smooth global supply chain serves the interests of all, and is a responsibility that should be shared by all parties, including the US, a Chinese Foreign Ministry spokesperson said on Thursday, in response to comments made by US Treasury Secretary Janet Yellen on Chinese new-energy products.

A Chinese expert in China-US trade said that China’s edge in new-energy industries are the result of Chinese entrepreneurship, massive investment in tech innovation and the country’s comprehensive manufacturing strength, as well as the choice of the market, which US officials should respect.

On Wednesday, Yellen said she intended to warn Chinese officials in “a constructive talk” about the negative effects of subsidies for China’s clean energy products, including solar panels and electric vehicles (EVs), during a planned visit to China, according to a report by Reuters.

Yellen reportedly said China’s “overproduction” of solar panels, EVs and lithium-ion batteries have “distorted” global markets and hurt jobs in other industrial and developing economies.

In response, Foreign Ministry spokesperson Lin Jian said at a routine press conference on Thursday that China firmly opposes trade protectionism and unilateral bullying.

The global industrial and supply chains are shaped and developed by the laws of market and business choices combined, Lin pointed out, noting that the vigorous development of China’s new-energy sector relies on technological innovation and excellent quality formed amid global market competition, rather than relying on so-called subsidies for support and protection.

“Speaking of subsidies, I would like to point out the US is leveraging the US Inflation Reduction Act (IRA)’s tax credit policies to distort fair market competition and disrupt the global industrial chain, violating relevant rules of the WTO and the principle of market economy,” Lin said.

“China firmly opposes such acts by the US and urges the US to correct its discriminatory industrial policies,” said Lin.

Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Thursday that any mismatch in supply and demand can only be addressed through global industry dialogue and cooperation.

Zhou urged the US side to observe the laws of market, refrain from unilateral control measures under the pretext of protecting national security, and lower tariffs on Chinese goods.

In mid-March, Donald Trump, now presumably the Republican Party US presidential candidate, threatened that he would hit cars made in Mexico by Chinese companies with a 100-percent tariff, according to Bloomberg.

In what analysts say is a “reasonable, legitimate and well-founded” move, China lodged a dispute complaint at the WTO against the US over discriminatory subsidies on new-energy vehicles (NEVs) under the US IRA on Tuesday.

The move not only aims to safeguard the interests of Chinese new-energy vehicle companies and a fair competitive environment for the global NEV industry, but also to firmly defend the rules-based multilateral trading system and resolutely maintain the stability of the global NEV industrial chain and supply chain, a spokesperson of the Ministry of Commerce said on Thursday.

In 2023, China accounted for around 60 percent of global electric car sales, according to the International Energy Agency (IEA). China doubled solar panel capacity in 2023, and wind power capacity rose by 66 per cent from a year earlier, the IEA estimated.

China is a current leader in new-energy industry. In 2023, its export value of solar panels, electric vehicles and lithium-ion batteries totaled 1.06 trillion yuan, increasing 29.9 percent from 2022, customs data showed.

China’s new-energy industry deserves to be rewarded as their successes stem from risky endeavors that aim to transform the world into a green, better living place, Zhou said.

GT Voice: Scapegoating China won’t resolve US economic woes

The hopeless fault-finder Illustration: Liu Rui/GT

Putting all the blame on China for economic problems in the US seems like an easy way for the Biden administration to pass the buck. However, the more that people in the US blame China, the fewer are actually working on a real solution. This is why the growing US tendency to shift blame onto Chinese manufacturing is a concerning sign.

US Treasury Secretary Janet Yellen said on Wednesday that when she next visits China, she would raise concerns that China’s excess production capacity may distort global markets and hurt jobs in other industrial and developing economies, Reuters reported.

Yellen is one of the Biden administration officials who have recently expressed concern about China’s overcapacity “flooding the market with cheap goods.”

But ironically, while she talked about the negative impact of excess capacity in China, a new study by the Federal Reserve Bank of New York suggested that China’s efforts to boost manufacturing and shore up the economy could put “meaningful upward pressure” on US inflation and push back the start of monetary easing, Bloomberg reported on Tuesday.

How could low-priced products from China’s “excess capacity” contribute to inflationary pressure in the US? If anything, this is a typical example of how the “blaming Chinese manufacturing” rhetoric of US officials and economic agencies is often contradictory and nonsense for anyone with basic economic understanding.

The illogical accusation against Chinese manufacturing shows that the US is quick to blame China for its own economic woes, while failing to acknowledge its own role in the matter.

The scapegoating only serves to divert attention from America’s own issues, and often leads to misconceived economic and trade policies, such as trade barriers and protectionism. This deters Washington from addressing the problems, while exacerbating inflation and market distortion.

Take the US inflation dilemma as an example. It is no secret that inflation has not yet reached a level where the Fed can be certain about cutting rates. It is not China’s fault, but America’s economic policy that is to blame for the problem. There is also no chance that the inflation problem can be addressed by suppressing China-made goods.

The Fed’s helicopter monetary policy during the pandemic and subsequent interest rate hikes have had serious consequences for the US economy, which have been directly reflected in the recent crises in the commercial real estate sector and US regional banks.

Moreover, trade-distorting practices with China are a significant factor contributing to high inflation in the US. The US initiated a trade war with China by imposing additional tariffs on imports of Chinese goods, leading to increased prices for low- and medium-end products. A 2021 report by Moody’s stated that US importers absorbed more than 90 percent of the additional costs caused by the increased US tariffs on Chinese goods.

Also, the US has promoted the concept of “decoupling” and “breaking the chain,” compelling companies to relocate their outsourcing operations, which only leads to higher costs of production, purchasing and operating.

Washington has shown growing protectionism to keep its domestic markets and protect jobs, which, however, has not improved industrial competitiveness but led to a spiral of workers’ wages and rising prices. The United Auto Workers strike is a prime example.

Fundamentally speaking, the root cause of the China-US trade imbalance is not that Chinese products are cheaper. There is nothing wrong in US demand for Chinese products, and the US can balance the trade account by exporting more high-end products to China and participating more actively in China’s economic development.

However, its trade policy toward China is aimed at severing this complementary relationship, which is detrimental to both sides.

A recent poll by the AP showed that 57 percent of Americans think the national economy is somewhat or much worse off than before Biden took office in 2021. This actually calls for policymakers to reflect on their economic and trade policy choices. Cracking down on China won’t make America’s economic problems disappear, but only lead to misguided policies that could exacerbate them.

Violations of the law of the market for political purposes will eventually be punished by the law of the economy.