CNAD-#117- China's ??????????????Updates about ????+(????????????????????????????) & ????

Everyday Briefing: 2024-07-17

????China Internal??

??China's authorities have activated emergency responses in central Henan Province and northwestern Shaanxi Province due to heavy rains. The National Disaster Reduction Commission has activated a Level-IV emergency response to flooding in Henan and dispatched a team to assist local governments in disaster relief work. The State Flood Control and Drought Relief Headquarters has activated a Level-IV emergency response in Shaanxi province. China's National Meteorological Center issued an orange alert for rainstorms, indicating heavy rainfall in several regions.

??Science and Technology??

??FAW Jiefang, a truck subsidiary of China's leading automaker FAW Group, produced its 9 millionth vehicle, bringing the group's total vehicle output to 60 million. In the first half of this year, FAW Jiefang produced 143,300 trucks, up 4.11 percent year on year, and sales increased 15.4% to 151,800. The company is committed to strengthening its core technologies and improving innovation and services.

??A large crude carrier (VLCC) in China's Fujian Province has been fitted with a bionic skin propeller, which has been estimated to save about 2% of the vessel's fuel consumption. The bionic skin is expected to save 1.5 percent of energy within a 2.5-year maintenance cycle. This could save over 300 tonnes of fuel annually, reducing carbon dioxide emissions by over 900 tonnes. Sea transportation is crucial for global economic activity but also consumes a significant amount of energy and contributes to greenhouse gas emissions. Researchers from the Ningbo Institute of Materials Technology and Engineering and COSCO SHIPPING Energy Transportation Co., Ltd. are working on marine bionic skin development to save energy in marine transportation. The dolphin skin, inspired by marine creatures like dolphins and sharks, forms a micro-structure in water flow, generating micro-eddy currents that minimize turbulent kinetic energy.

??China's shipbuilding industry experienced significant growth in the first half of this year, with projects completed totaling 25.02 million deadweight tonnes (DWT), an 18.4% increase from the previous year. New orders surged to 54.22 million DWT, a year-on-year growth of 43.9%. The order book stood at 171.55 million DWT, up 38.6% from the previous year. China's shipbuilding completions, new orders, and order book accounted for 55%, 74.7%, and 58.9% of the global totals, respectively. Despite the uncertain global economic outlook and trade protectionism and de-globalization impacting the industry, China's economy remains resilient, with the recovery trend in maritime trade continuing. The new ship price index climbed to 187.23 in June, reaching its highest level since September 2008. The main business income of China's large-scale shipbuilding enterprises increased by 31.5% year on year in the first quarter of this year.

??China EximBank has issued 39 billion yuan (about 5.47 billion U.S. dollars) of financial bonds to support the Belt and Road Initiative (BRI) in both interbank and over-the-counter markets. This marks the first time such bonds, maturing in three years, are being traded beyond the interbank market. China announced in October that two policy banks, including China EximBank, would each set up a 350 billion yuan financing window.

?? Construction of the No. 2 power unit at the Xudapu Nuclear Power Plant in northeast China's Liaoning Province has begun, with an installed capacity of 1.29 GW. The fourth power unit, located in Huludao, will use a third-generation domestically developed pressurized water reactor. The plant, which is the second in northeast China, is designed to have six pressurized water reactors with a combined installed capacity of 7.6 GW. The investment is 140 billion yuan (about 19.6 billion U.S. dollars). Construction began in 2021 and the third power unit, No. 1, began construction in November 2023.

??Chinese researchers have developed the first versatile artificial intelligence model, PathOrchestra, capable of analyzing over 20 human organs, including the lungs, breast, and liver. The model, developed using China's largest domestic dataset of nearly 300,000 digital pathology images, has achieved an accuracy rate exceeding 95 percent in nearly 50 clinical tasks. PathOrchestra is a significant breakthrough in AI-assisted disease diagnosis, addressing a multitude of cancers. The model has achieved an accuracy rate exceeding 95 percent in nearly 50 clinical tasks, including lymphoma subtype diagnosis and bladder cancer screening. This advancement can reduce the workload of pathologists and increase the efficiency of reviewing medical images. PathOrchestra is an example of China's rapid growth in AI, with 36% of the more than 1,300 AI LLMs globally coming from China.

??Guangdong Province's foreign trade volume reached a record high of 4.37 trillion yuan in the first half of 2024, marking a 13.8% year-on-year growth. Exports rose by 12.1% to 2.85 trillion yuan, while imports reached 1.52 trillion yuan, a 17.1% increase. Mechanical and electrical product exports accounted for 64.4% of the province's total export value. Guangdong's trade with Belt and Road Initiative partner countries also increased by 12%.

??Business China??

??The Beijing-Tianjin-Hebei region experienced a 4.6% YoY increase in foreign trade in the first half of this year, reaching a historic high of 2.54 trillion yuan (around 356.9 billion U.S. dollars). Exports rose 6.4% YoY to 673.87 billion yuan, while imports reached 1.87 trillion yuan, up 3.9% YoY. The region's foreign trade accounted for 12% of the country's total, with Beijing accounting for 72% of the total. Emerging industries, such as information technology, medicine and health, aerospace, and automotive, drove the region's export growth. China's strategy to coordinate the development of Beijing and neighboring areas began in 2014 to improve economic structure, environment, and public services.

??China's Chamber of Commerce for Import and Export of Machinery and Electronic Products has expressed strong opposition to the U.S. Inflation Reduction Act (IRA), stating that it upholds the legitimate rights and interests of China's new energy vehicle industry. The IRA was signed into law in August 2022, and China filed a complaint at the WTO dispute settlement mechanism over U.S. subsidies for NEVs. The IRA is deemed to violate market economy laws and suppress China's NEV industry's development, damaging the fair competition environment, industrial chain stability, international trade order, and global economic recovery. The chamber argues that the U.S. engages in protectionism and "double-standards" to hinder China's free trade, which will not only hinder its industrial development but also undermine global cooperation on climate change.

??China's pilot free trade zones (FTZs) in Shanghai and Guangdong Province have been ranked in an index published by Sun Yat-sen University for their efforts in promoting institutional innovation. The index, which assesses five main areas: trade facilitation, investment liberalization, financial revolution and innovation, governmental function transformation, and law-based environments, aims to provide constructive opinions and suggestions for the direction and implementation of institutional innovation policies in these FTZs. The index also included indicators focusing on the digital economy, institutional opening-up, and green development. China established its first pilot FTZ in Shanghai in 2013 to trial transformative reforms in government functions, financial system, trade services, foreign investment, and taxation.

??The Asian Development Bank (ADB) has approved a $100 million concessional loan to Uzbekistan to enhance its perinatal medical services. The loan will help modernize 230 perinatal centers across the country, equipping them with modern equipment, updated clinical standards, and improved medical staff capacity. Uzbekistan's permanent population exceeded 37 million in April, and the project aims to improve perinatal care for pregnant women and their newborns.

????Chinese Foreign Minister Wang Yi has emphasized the urgency and realistic goal of reducing tension over the Ukraine crisis. He met with Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto, who emphasized China's role in promoting peace. Szijjarto said Hungary is willing to work with China to prevent conflict escalation and establish conditions for a political settlement. Wang also noted that Hungarian Prime Minister Viktor Orban recently visited China, where Chinese President Xi Jinping had strategic communication with him. He urged all parties to reach a consensus on the principles of no expansion of the battlefield, escalation of fighting, and no fanning over the flames to create conditions for a ceasefire and resumption of peace talks.

????The Saudi Public Investment Fund (PIF) has signed agreements with three Chinese companies to localize the manufacturing and assembly of equipment and components needed for solar and wind power in Saudi Arabia. The Renewable Energy Localization Company (RELC), a wholly-owned PIF company, is in line with the Saudi Ministry of Energy's drive to localize the production of renewable energy components. The first agreement involves a joint venture between Chinese wind power technology company Envision Energy and Saudi firm Vision Industries, manufacturing and assembling wind turbine components with an estimated annual generation capacity of four gigawatts. The second joint venture involves Chinese manufacturer Jinko Solar and Vision Industries, localizing the manufacture of photovoltaic cells and modules for high-efficiency solar generation.

??China is set to issue its fourth batch of ultra-long special treasury bonds on July 24, worth 55 billion yuan (about 7.7 billion U.S. dollars). The bonds, which typically have a tenor of over 10 years, will be issued with a 30-year term and an interest rate based on competitive bidding. The issuance is part of China's proactive fiscal policies, expected to boost market confidence and support economic development.

???China-Foreign Affairs??

????A Philippine warship, Sierra Madre, intentionally run aground at Ren'ai Jiao in the South China Sea for 25 years has been causing significant damage to corals and polluting the marine environment. The ship, built during World War II, has been causing pollution by poisoning fish with sodium cyanide, blast fishing, and releasing marine waste. The ship's rusty and dilapidated condition has led to the decline of reef-building corals by 38.2% from 2011 to 2024, with the rate of decline in the reef flat surrounding the vessel reaching an astonishing 87.3%. The concentrations of heavy metals, dissolved inorganic phosphorus, and oils have also increased significantly. The Philippines' involvement in this environmental destruction is seen as a "cancer" in the South China Sea.

????China and Croatia have launched a joint police patrol, marking the fifth in a year, with eight Chinese officers joining the one-month mission in Croatia's top tourist destinations. The patrol, launched in 2018, aims to provide security services for both Chinese and foreign tourists. Chinese Ambassador to Croatia, Qi Qianjin, said the initiative is a symbol of law enforcement and security cooperation between the two countries. Vlatka Vulic Petkovic, representative from Croatia's Police Headquarters, praised the high-level professionalism of Chinese police officers and the patrols' contributions to making Croatia a safe tourist destination. Han Zhuoqi, representative of the Chinese joint patrol team, said all officers would work with Croatian counterparts to ensure the success of the patrol mission.

????Chinese modernization offers valuable lessons in sustainable development and international cooperation, according to Faruk Boric, president of the Association of Friendship between China and Bosnia and Herzegovina. China's path to modernization, driven by economic growth, technological innovation, and political stability, serves as a model for global development. Boric emphasizes the importance of using experiences in one's own style to suit individual interests. China's emphasis on innovation, quality, and connectivity ensures it remains at the forefront of global advancement, contributing to a more prosperous and interconnected world. Since 1978, China has driven a vibrant path to modernization, driven primarily by economic growth. Recent innovations in solar energy, green technology, and other scientific domains have accelerated modernization efforts. China's role in the global economy is substantial, and the Belt and Road Initiative has enhanced global connectivity and economic integration.

???? China's permanent representative to the United Nations, Fu Cong, has urged countries to uphold sovereign equality and promote a multipolar world in an equal and orderly manner. He emphasized the importance of international cooperation and the joint pursuit of humanity in building a just, democratic, and sustainable international order. Fu praised the establishment of the United Nations in 1945 as a means to save future generations from war and uphold multilateralism. The UN Charter is considered the cornerstone of the modern international order and embodies the noble ideal of working towards a just and equitable international order. Fu also called for common security based on the objective law of indivisibility of security, advocating for dispute resolution through dialogue and consultation. He also emphasized the importance of promoting common development by accelerating the implementation of the 2030 Agenda for Sustainable Development.

????China has suspended talks with the US on arms control and non-proliferation consultations, citing the US's continued arms sales to Taiwan and actions that undermined China's interests and damaged mutual trust. Chinese Foreign Ministry spokesperson Lin Jian stated that the US bears full responsibility for this situation. China is willing to maintain communication on international arms control issues, but the US must respect China's core interests and create necessary conditions for dialogue and exchanges. The US must respect China's interests and create necessary conditions for dialogue and exchanges between the two sides.

???? China has urged the US to address its human rights issues, rather than using them as an excuse to interfere in other countries' internal affairs and impose sanctions. Chinese Foreign Ministry spokesperson Lin Jian stated that the US deliberately spreads false information, discredits China's human rights situation, and imposes indiscriminate visa restrictions on Chinese officials. He also stated that China is strongly dissatisfied with the US's actions and has made solemn representations to the US. As a countermeasure, China will impose reciprocal visa restrictions on US officials who spread lies on human rights issues related to China, promote sanctions against China, and harm China's interests. The UN Human Rights Council approved China's participation in the fourth round of Universal Periodic Review, demonstrating China's achievements in human rights.

??Cultural??Insights ??

?? Chinese comedy "Successor" has topped the daily box office chart on the Chinese mainland, with sales of 135.78 million yuan (about 19.04 million U.S. dollars). The film follows a poor rural couple who rely on their son to change their fate. The film will be available for public screening on Tuesday. The second-highest-grossing film was "A Place Called Silence," which earned over 39.37 million yuan on its 13th day of public screening.

??China has seen 211 million railway passenger trips since the start of the summer travel rush between July 1 and 15, an increase of 6.5% from the same period last year. The average daily number of railway passenger trips reached 14.03 million in the first 15 days of July. The company has formulated a summer passenger transportation plan, increased transportation capacity, implemented measures to facilitate and benefit passengers, and made efforts to provide reliable guarantees for safe and orderly travel and stable economic operation.

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