CNAD-#75- China's ???????????????Updates about ????+(????????????????????????????????????????????????????????) &???????

Everyday Briefing: 2024-06-04

????China Internal??

?? China has set up a special fund to support the Three-North Shelterbelt Forest Program (TSFP), a large-scale afforestation project, in its efforts to combat desertification and restore the ecological environment. The Ministry of Finance has allocated 12 billion yuan ($1.7 billion) from this year's central budget for the program, with subsequent funds to be allocated based on needs. The program aims to control desertification in three key areas: the Yellow River meandering bends, Horqin and Hunshandake sandy lands, and the Hexi Corridor-Taklimakan Desert region. Launched in 1978, the TSFP consists of afforestation in northwest, north, and northeast China. Chinese Vice Premier He Lifeng has urged efforts to fight desertification in the eastern part of the program, focusing on key projects, effective desert control methods, and advancing ecological industries.

?? China's State Flood Control and Drought Relief Headquarters has activated a Level-IV emergency response due to potential flooding in some regions from Monday to Wednesday. The headquarters has dispatched a work team to Guangxi Zhuang Autonomous Region to guide flood-control work. The headquarters have required departments to pay attention to weather-warning information, implement early-warning and response mechanisms, deploy emergency-rescue teams, and prepare materials and equipment in advance to ensure safety. China has a four-tier flood-control emergency response system.

??Science and Technology??

?? China Eastern Airlines is constructing an international aviation maintenance services platform in Shanghai's Yangshan special comprehensive bonded zone. The platform, which will have three hangars, workshops, and facilities for accessory repair and refitting, will have a total area of over 110,000 square meters. Hangar No.1 will be the largest in Asia and accommodate nine wide-body aircraft. The Chang'e-6 mission carried four payloads developed through international cooperation, providing more opportunities for global scientists and merging human expertise in space exploration. A team of Chinese and Swiss scientists has developed an energy-efficient sensing-computing neuromorphic chip, dubbed "Speck," that mimics the neurons and synapses of the human brain.

???? Tanzania has pledged to strengthen its collaboration with China in developing technical and vocational education and training (TVET) to meet local and international standards for graduates. The country's deputy permanent secretary, James Mdoe, praised China's robust TVET systems for contributing to Tanzania's rapid economic development. At the China-Africa Second TVET Academic Exchange Seminar in Dar es Salaam, Mdoe emphasized the importance of establishing collaborations with Chinese TVET colleges to improve training quality and sustain investments in the country. The seminar aims to strengthen TVET collaborations between Tanzania and China, aiming to produce skilled graduates capable of meeting national and international labor market demands.

??? China's Chang'e-6 probe successfully lifted off from the lunar surface, carrying samples from the moon's far side, marking an unprecedented feat in human lunar exploration history. The probe, which included an orbiter, lander, ascender, and returner, was launched on May 3. The lander-ascender combination touched down at the designated landing area in the South Pole-Aitken Basin on June 2. The spacecraft completed its intelligent and rapid sampling work, and samples were stowed in a container inside the ascender as planned. Researchers conducted simulated sampling in a ground lab based on detection data sent back by the Queqiao-2 relay satellite. The mission withstood the test of high temperature on the far side of the moon and adopted two methods of moon sampling, including subsurface and surface sampling. The lander's multiple payloads, including a landing camera, panoramic camera, lunar soil structure detector, and lunar mineral spectrum analyzer, performed well.

?? China's Minister of Commerce Wang Wentao has criticized Europe's anti-subsidy investigation into China's electric vehicles (EVs) for "excessive industrial capacity" as trade protectionism. He argued that the accusations of market distortion against China were a result of a "distorted mentality." Wang made the remarks during the 29th meeting of the China-Spain Joint Economic and Industrial Cooperation Committee in Madrid. The two sides discussed issues such as promoting high-quality development in bilateral economic and trade relations, facilitating bilateral personnel exchanges, government procurement, and market access for agricultural and food products. Wang expressed hope that Spain would play a positive role in persuading the EU to remain open in the green and new-energy industry. Spain, on the other hand, expressed its commitment to deepening strategic partnerships, maintaining dialogue, and promoting balanced economic and trade cooperation.

?? A low temperature resistant automatic hydrogen-filling robot has been installed at the Batuta heavy haul railway hydrogen refueling station in China's Inner Mongolia Autonomous Region. The robot can fill a locomotive in 30 minutes and run continuously for 8 hours. It also improves efficiency, reduces personnel misoperation, and lowers safety risks and operating costs.

?? Chinese scientists have upgraded an AI-powered large model, part of the FuXi series, for climate and weather forecasting, enhancing accuracy. The Shanghai Academy of Artificial Intelligence for Science (SAIS) and Fudan University unveiled FuXi 2.0, the first global large weather model for weather routing. The model, which incorporates elements such as wind, waves, swells, and sea surface temperature, is capable of delivering hourly high-resolution forecasts for 15 days. It is expected to help reduce long-term dependence on foreign service providers for offshore weather routing. In the new energy sector, FuXi 2.0 offers more accurate forecasts concerning wind speed, solar irradiance, and power generation, optimizing the efficiency of wind and solar power generation, balancing grid load, and reducing wind and solar power curtailment. The model can be seen as an intelligent navigation system for wind and solar farms.

??Business China??

???? The Bank of China (BOC) Serbia, the authorized clearing bank for renminbi (RMB) business in Serbia, successfully handled its first cross-border RMB remittance business, valued at 2 million yuan (about 281,349 U.S. dollars), from Serbia to China's Hebei Province. The People's Bank of China (PBOC) authorized BOC Serbia to facilitate cross-border transactions between China and Serbia, promoting bilateral trade and investment facilitation.

?? China Eastern Airlines is constructing an international aviation maintenance services platform in Shanghai's Yangshan special comprehensive bonded zone. The platform, valued at 1.5 billion yuan, will include three hangars, workshops, and facilities for repair and refitting projects. Hangar No.1 will be the largest in Asia, accommodating nine wide-body aircraft simultaneously. The project is expected to be completed in the first half of 2026 and will provide 1.8 million hours of aircraft maintenance services annually.

???? Malta's long-standing car importer, GasanZammit Motors Limited, has partnered with Chinese electric vehicle manufacturer BYD since September last year. The partnership has "very promising" potential, as about 30% of total vehicle registrations in Malta were electric vehicles during the first four months of this year. GasanZammit's CEO, Stefan Deguara, believes that BYD has developed market-leading EV technology through consistent investment in research and development, aligning with their environmental goals. The BYD brand offers competitive value propositions for Maltese customers without compromising on quality, encouraging the shift to electrification in Malta. Currently, BYD models like the Atto 3, Dolphin, and e6 are available in Malta, with more models expected in the future. Deguara warns that possible EU tariff hikes on Chinese EVs could increase costs for European consumers and slow the transition to greener technologies. He dismisses the claim of "overcapacity" of Chinese EVs, emphasizing China's significant role in meeting global demand for EVs.

?? Chinese companies are optimistic about selling their products to overseas markets, supported by favorable conditions both domestically and internationally. A survey by the China Council for the Promotion of International Trade (CCPIT) shows that 81.6% of foreign trade-oriented firms predict stable or increased exports in the first half of the year. China's exports grew 0.6% in 2023, slowing down from a 10.5% jump in 2022. The possibility of dynamic exports in 2024 is good news for China, which is taking action to secure a GDP growth of around 5% this year. The World Trade Organization forecasts a rebound in global trade, with merchandise trade expected to expand 2.6% in 2024 and 3.3% in 2025 after dipping 1.2% in 2023. The Chinese government is addressing difficulties faced by foreign traders and helping them hone their international competitiveness.

?? China's benchmark gold transaction prices for spot interbank transactions were lower on Tuesday, with gold purity at 99.95 percent pure or above at 548.03 yuan per gram, 2.87 yuan lower than the previous trading day. The interbank gold price inquiry market allows spot transaction prices to rise or fall within 15% of benchmark prices each trading day.

Meanwhile, The Shanghai Interbank Offered Rate (Shibor), a measure of China's interbank market borrowing cost, decreased by 6 basis points to 1.663 percent. The rate, calculated by averaging all interbank RMB lending rates from 18 commercial banks with high credit ratings, dropped by 2.6 basis points to 1.785 percent.

???? Airbus, a leading global aviation company, has been leveraging the synergies between China and France to explore green industries and clean energy. The company has collaborated with China National Aviation Fuel Group to develop the internationally accepted Sustainable Aviation Fuel standard. Airbus also opened a service center in Chengdu, China, dedicated to the complete life cycle of an aircraft. In May, China and France signed 18 cooperation agreements covering aviation, agriculture, people-to-people exchanges, green development, and SME cooperation. Since the establishment of diplomatic ties 60 years ago, bilateral trade between the two countries has grown by almost 800-fold, reaching 78.9 billion U.S. dollars in 2023. Over the past six decades, the cumulative two-way investment has surpassed 26 billion U.S. dollars, with over 2,000 French companies operating in China.

???? China's central region, comprising six provinces, is attracting foreign-funded enterprises, including German chemical giant BASF and Volkswagen Group China. The region, known for its agriculture, energy, and equipment manufacturing industries, is aiming to build a modern industrial system at an accelerated pace. The 13th Central China Investment and Trade Exposition (Expo Central China 2024) was held in Changsha from May 31 to June 2, attracting over 200 multinationals. Italian companies can leverage their expertise in manufacturing, design, and fashion in China's growing consumer market. The expo featured exhibits from the six provinces, including a 5G+ hydrogen-powered unmanned tractor and an intelligent self-driving bus. The collaboration between Italian and Chinese companies will yield win-win results, as they have unique advantages in technology, design, and quality.

???? The Seventh China Trade Fair Indonesia 2024, held at the Jakarta International Expo, attracted nearly 1,000 companies from 19 Chinese provinces and cities, along with local Indonesian businesses. The four-day fair covered 40,000 square meters and featured sectors such as industrial equipment, plastic printing and packaging equipment, educational equipment, building materials, household appliances, and textiles and apparel. The fair introduced the education equipment industry for the first time, with 59 companies participating. Chinese companies operating in Indonesia contribute to various fields, positively impacting employment, tax revenue, and industrial chains. The trade fair serves as a platform for Chinese and Indonesian enterprises to connect, exploring the growth potential of bilateral trade and investment.

???? China hopes the European Union will uphold its commitment to free trade and oppose protectionism, and work with China to maintain the overall interest of China-EU economic and trade cooperation. Chinese Foreign Ministry spokesperson Mao Ning said that China-EU economic and trade relations are mutually beneficial and win-win, with an average trade value of nearly 1.5 million U.S. dollars per minute. The two-way investment has exceeded 250 billion U.S. dollars, and companies from both sides continue to increase investment in each other's markets. The China-Europe freight train service has recorded over 90,000 trips, creating a significant trade channel between Asia and Europe. China will continue to promote high-level opening up and provide an open, inclusive, and transparent business environment for enterprises from all countries.

?? China's road logistics price index rose in May due to increased demand for road freight transport in April and May, according to a survey by the China Federation of Logistics and Purchasing and the Guangdong Lin'an Logistics Group. The index reached 103, up 0.13 percent month on month and 0.39 percent from 2023. Full-truckload logistics saw a 0.18% increase from the previous month and 0.46% year on year. The association attributed the growth to increased market activity in April and May.

???China-Foreign Affairs??

???? Chinese President Xi Jinping congratulated Iceland's President Halla Tomasdottir on her election and noted the steady progress in bilateral cooperation in trade, investment, geothermal energy, environmental protection, culture, and tourism. He emphasized the importance of China-Iceland relations and expressed readiness to work with Tomasdottir to deepen political trust and expand cooperation.

???? Chinese President Xi Jinping congratulated Claudia Sheinbaum Pardo on her election as Mexico's president, highlighting the country's importance as a major Latin American and emerging market country. He emphasized the strategic significance, complementarity, and mutual benefits of China-Mexico relations and expressed his willingness to strengthen strategic communication with Pardo to lead bilateral relations to new heights and bring more benefits to both nations.

???? Chen Wenqing, a member of the Communist Party of China's Political Bureau and head of the Commission for Political and Legal Affairs, met with Turkish Foreign Minister Hakan Fidan in Beijing. The leaders agreed to deepen strategic China-Turkey cooperation, creating a new blueprint for long-term development. China is willing to work with Türkiye to enhance security cooperation, enrich bilateral ties, protect security interests, align development strategies, and contribute to peace and development. Fidan expressed willingness to continue promoting bilateral security cooperation.

???? Bangladeshi State Minister for Commerce Ahasanul Islam Titu has expressed the country's desire to ensure mutual benefits after signing the China-Bangladesh Free Trade Agreement (CBFTA). He stated that Bangladesh's priority is to increase employment opportunities and investment through the CBFTA. Chinese Ambassador to Bangladesh Yao Wen emphasized the CBFTA's role in promoting healthy and stable bilateral economic and trade cooperation between China and Bangladesh. He added that the early signing of the CBFTA will open a new chapter of mutual benefit and win-win cooperation.

???? China has strongly opposed the US's interference in its internal affairs, following the US State Department's announcement of new visa restrictions on officials of the Chinese Central Government and the Hong Kong Special Administrative Region (HKSAR) government. China criticized the US for attacking the principle of "one country, two systems," smearing the Law on Safeguarding National Security in the Hong Kong SAR, and attempting to meddle with HKSAR's judicial matters. The "primary election" organized by anti-China individuals in the case is a serious challenge to Hong Kong's constitutional order and endangers national security. China has urged the US to respect China's sovereignty and the rule of law in Hong Kong and abide by international law and basic norms governing international relations. If the US implements visa restrictions on officials of the Central Government and the HKSAR government, China will take firm countermeasures.

???? China has expressed its hope that the Summit on Peace in Ukraine will not become a platform for bloc confrontation, stating that it has been in close communication with Switzerland, Ukraine, and other relevant parties. China has previously stated that it will not attend the summit organized by Switzerland, which some believe means it does not support Switzerland and Ukraine in holding the summit and does not support peace. However, China believes that all efforts conducive to a peaceful settlement of the crisis should be supported. The international peace conference needs to meet three essential elements: recognition from both Russia and Ukraine, equal participation of all parties, and fair discussion of all peace plans. China's decision on participation is based on its assessment of the meeting itself, and its position on the peace conference is fair and just. China believes that whether one supports peace should not be judged by a particular country or meeting.

??? China has accused the US, Japan, and the ROK of using their trilateral defense ministers' meeting and vice foreign minister-level dialogue to deliberately attack and vilify China. The US, Japan, and the ROK blamed China in a joint press statement and a media note of the U.S.-Japan-ROK Trilateral Vice Foreign Minister-Level Dialogue in Washington. China's spokesperson, Mao Ning, criticized the three countries for advancing the "Indo-Pacific Strategy," interfering in China's internal affairs, and causing discord between China and neighboring countries. She emphasized that China opposes bloc politics and the practice of bloc politics, which can instigate tensions and undermine other countries' strategic security. Mao emphasized that the Taiwan question is purely China's internal affair and that the biggest threat to cross-Strait peace is separatist activities of "Taiwan independence" forces. If countries truly care about cross-Strait peace and stability, they should uphold the one-China principle, oppose separatist activities, and support China's reunification.

???? Pakistani Prime Minister Shehbaz Sharif is on an official visit to China at the invitation of Chinese Premier Li Qiang. Sharif emphasized the unbreakable friendship between the two countries and the unwavering commitment to the one-China principle. He emphasized that Pakistan considers China one of the most trusted friends globally and that Taiwan is an integral part of China. Sharif first visited China 40 years ago, recognizing its dedication to meeting basic needs and developing modern science and technology. He praised China's progress under President Xi Jinping's leadership, which has helped alleviate millions of people from poverty. Sharif plans to learn from the Chinese model on how to alleviate poverty in Pakistan and help people stand on their own feet.

???? Palestine is expressing its appreciation for China's support for the Palestinians' cause and is looking forward to closer cooperation with China to promote peace and stability in the Middle East. The minister of state for foreign affairs and expatriates, Varsen Aghabekian Shahin, highlighted the depth of the partnership between the Arab world and China and China's position on the legitimate national rights of Palestinians. She stressed the importance of China's call for an international peace conference to revive the peace process and achieve progress towards a two-state solution. China has always supported the Palestinian people's just cause, providing political, diplomatic, economic, and humanitarian aid. As a permanent member of the UN Security Council, China plays a major role in promoting stability and peace in the Middle East. The strategic partnership between China and Palestine is based on mutual respect and cooperation, with China being one of the first countries to recognize the Palestine Liberation Organization and the State of Palestine.

?? The seventh meeting of the Standing Committee of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC) in Beijing focused on building a high-level socialist market economy system. Wang Huning, chairman of the CPPCC National Committee, presided over the meeting. Ding Xuexiang, vice premier, delivered a report, urging national political advisors to conduct in-depth consultations and propose suggestions for building a socialist market economy system. He stressed the importance of encouraging state-owned capital and enterprises to grow stronger and provide more opportunities for the non-public sector. He called for strategic guidance of national development plans and strengthening coordination between fiscal and monetary policies to promote sustained economic development. The advisors also discussed topics such as the transformation of traditional manufacturing industries, water conservancy infrastructure, and green and low-carbon transformation of industries.

???? Russia has expressed its support for Turkey's interest in joining the emerging-market cooperative mechanism BRICS, according to Kremlin Spokesperson Dmitry Peskov. Turkish Foreign Minister Hakan Fidan stated that Turkey would like to join BRICS and will monitor its developments. The topic of Türkiye's membership will be on the agenda of the BRICS summit, chaired by Russia. BRICS is unlikely to fully satisfy all countries' expectations, but the organization is interested in contacts. The group includes Brazil, Russia, India, China, and South Africa.

??Cultural??Insights ??

??? The Macao Special Administrative Region (SAR) has been named "Culture City of East Asia 2025," according to the Macao SAR government's Office of the Secretary for Social Affairs and Culture. The designation aims to enhance Macao's cultural offerings, improve public cultural services, and foster cultural exchanges. The final evaluation took place in May. The Culture City of East Asia program, launched by China, Japan, and South Korea, aims to promote cultural exchanges and cooperation.

??China Southern Airlines has launched a direct passenger air route linking Shenzhen to Riyadh, Saudi Arabia, marking the fifth route from Shenzhen to the Middle East. The flight, operated by China Southern Airlines, carries over 200 passengers for business, service, and travel. The service operates twice a week using Airbus A330 aircraft, with a flight time of nine hours and 30 minutes. The move aims to foster closer economic, trade, culture, and tourism exchanges between China and Saudi Arabia.

??China Railway is set to launch high-speed sleeper trains linking Beijing and Shanghai with Hong Kong on June 15. These trains will replace non-high-speed services, allowing passengers to travel between the Chinese mainland and Hong Kong overnight. The travel time between Beijing and Hong Kong will be reduced to 12 hours, and between Shanghai and Hong Kong to 11 hours. The new services will operate between Beijing West Railway Station, Shanghai Hongqiao Railway Station, and Hong Kong's West Kowloon Station.

???Indonesia's Ministry of Tourism and Creative Economy (MTCE) has launched promotional activities focusing on the Chinese market to boost inbound tourism to the country. The ministry hopes this sales mission will make Indonesia the favorite holiday destination for foreign tourists. Chinese tourists typically stay in Indonesia for 8-11 days, with an average spending per arrival reaching $1,386.55 U.S. The MTCE has set a target of 1 to 1.5 million inbound Chinese tourists this year, citing the rapid growth of the Chinese economy.

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