More than half of Japanese companies plan to expand or maintain investment in China in 2024, according to a survey by the Japanese Chamber of Commerce and Industry in China that was released on Tuesday, underscoring their confidence in the China market, driven by improved business conditions and policy support.
The survey showed that Japanese firms recognize the pivotal role of the China market in their global strategy and are keen to capitalize on the opportunities presented by China's high-quality development, despite external uncertainties stemming from intensified US actions targeting China, analysts said.
The survey received 1,741 responses, primarily from the manufacturing sector. The survey was conducted from March 18 to April 12 to grasp the situation of Japanese companies in China and understand the changing market environment. Among the surveyed companies, 56 percent said that they would increase or maintain their investment in China this year.
At Tuesday's press conference, Tetsuro Homma, chairman of the chamber, said that two or three decades after entering the China market, many Japanese companies in China still recognize the importance of the market.
While striving to secure their respective market positions and profit areas, they are adopting new measures including more investments for the future, the chamber head said.
The main reasons that Japanese firms plan to invest more include the need to launch new projects, establish factories and production lines, increase orders, and strengthen their research and development (R&D) capabilities, according to the survey.
Even for companies that plan to reduce overall investment, there is a consensus to ramp up investment in R&D and talent development, the chamber said. China's continued improvement in the business environment has spurred enthusiasm for investment among Japanese companies, as reflected in this report.
The survey found that 57 percent of the companies said that they were very satisfied or satisfied with the business environment in the first quarter of this year, a three-percentage-point increase from the previous quarter, marking an improvement for three consecutive quarters.
The surveyed companies also said that some of the Japanese firms had excellent communication and a good relationship with Chinese local governments. Cities receiving high praise included North China's Tianjin, Shanghai, and Foshan, South China's Guangdong Province.
Additionally, 75 percent of surveyed enterprises reported receiving treatment in terms of policy perspectives that was equal to that of domestic enterprises, marking a two-percentage-point increase from the previous quarter.
Moreover, 52 percent of the surveyed enterprises indicated that China is their most important market or one of the most important markets, marking a one-percentage-point increase from the previous quarter.
Many Japanese enterprises expressed a desire to resume visa-free arrangements to facilitate personnel exchanges and expand business opportunities, according to the chamber.
"Japanese companies are voting with their feet when it comes to the future. China remains their most important market and Japanese companies are actively adjusting their strategies to minimize external risks while maximizing development opportunities in the China market and capitalizing on China's high-quality development," Xiang Haoyu, a research fellow at the China Institute of International Studies, told the Global Times on Tuesday.
The Chinese government's continuous enhancement of the business climate for foreign investment and its further opening-up has drawn investment from foreign companies, including those from Japan.
These companies are being rational in assessing and valuing their cooperation needs and interests with China, their major market, the Chinese expert said.
In a recent interview with the Global Times, Homma said that China's GDP is four times that of Japan's, with a population of 1.4 billion. "Japanese companies cannot and should not ignore the importance of the Chinese market in their global strategy," he said.
As 2024 marks the 60th anniversary of China-France diplomatic relations, exchanges in core sectors such as aerospace, nuclear energy and trade have already realized fruitful achievements, while the development of emerging fields such as new energy and the digital economy are likely to become new growth engines for propelling bilateral cooperation, French enterprises and Chinese experts said.
Observers also highlighted France's relatively independent policy toward China and China's vast market potential as major advantages in consolidating bilateral exchanges.
Unlike some other European countries, whose economic policies have been strongly influenced by the US, France has a strong level of independence with its policy toward China, as it highly values the world's second-largest economy as a major market and production base for French enterprises, Sun Yanhong, a senior research fellow at the Institute of European Studies of the Chinese Academy of Social Sciences, told the Global Times on Sunday.
In addition, the strong cultural confidence of the two sides and deep people-to-people and cultural exchanges have made China-France relations more stable than in the case of some other European countries, said Cui Hongjian, a professor at the Academy of Regional and Global Governance with Beijing Foreign Studies University.
France is China's third-largest trading partner in the EU while China remains France's fourth-largest global trading partner. In the first quarter of 2024, bilateral trade totaled 127.22 billion yuan ($17.99 billion), according to data from China's General Administration of Customs. From 2019 to 2023, China's trade with France grew 5.9 percent annually.
Specifically, France is China's largest source of agricultural imports from the EU with a total import value of 10 billion yuan and increases in products such as dairy, pork and wine during the first quarter.
China remains a crucial supplier of a wide range of consumer goods for France, as exports of home appliances to France grew 30.6 percent year-on-year while exports of toys increased by 28 percent, official data showed.
Besides the consolidated cooperation in traditional fields, experts expect the rapid development of emerging industries will likely create new growth points to further advance bilateral cooperation.
Sun sees cooperation potential in industries related to the digital economy and green transformation, as Europe has been involved in these sectors, with both advantages and shortcomings that can be made up through collaborating with China.
France has relatively insufficient production capacity, and it has a talent gap in research and development in new energy. China can provide corresponding help and the two countries have complementarity in the sector, Sun said, adding that the green transformation will offer more opportunities for both sides to explore new potential in sectors like agriculture.
French enterprises are also upbeat about continuously deepening cooperation with their Chinese counterparts in emerging sectors with confidence and positive outlook amid the celebration of the 60th anniversary of diplomatic ties between China and France.
"We honor our role in supporting China's strong economic growth and green transition as one of the first multinational environmental services companies in the market," Sabrina Soussan, chairman and CEO of SUEZ, told the Global Times in a recent interview, adding that China remains a key market and strategic partner for the company.
Soussan highlighted significant partnerships signed in the presence of the two countries' leaders, and these projects aimed at transforming waste into renewable energy and pioneering electric vehicle battery recycling. These are critical for China's green transition. "I believe that by collaborating with local partners, we leverage our combined strengths to significantly advance China's green and low-carbon transition," Soussan said.
A think tank report titled "China-EU Cooperation on Environment and Climate: Progress and Prospects" was released globally on Friday. Noting green as the distinctive color of China-EU cooperation, the report said this cooperation not only enriches and develops the bilateral comprehensive strategic partnership, but also directly advances the environmental governance, trade and investment of both sides, benefiting the entire world.
Amid China's efforts to bolster high-quality opening-up, observers said that China will remain a hot destination for investment from Europe, backed up by supportive measures, while suggesting more targeted measures for further expanding cooperation.
For instance, new areas could be explored when it comes to expanding market access, such as developing the economy targeting the elderly, which France and Europe have much experience in, Cui told the Global Times on Sunday.
In the first two months of 2024, France's actual investment in China increased by 585.8 percent year-on-year, according to data from China's Ministry of Commerce.
China and France released on Monday Paris time a joint declaration on artificial intelligence (AI) and global governance during Chinese President Xi Jinping's state visit to France, the Xinhua News Agency reported on Tuesday.
Experts said that the joint declaration will pave the way for practical cooperation, and serve as a model for enhancing AI exchanges and partnerships between China and other European countries.
Signing the declaration is also seen as a challenge to US dominance in the field of AI, highlighting the limitations of hegemonic ambitions in the fast-evolving AI landscape. The era of the US attempting to assert AI global dominance is deemed unsustainable, experts said.
The declaration noted that President Xi and French President Emmanuel Macron firmly believe in the importance of continued dialogue to provide lasting solutions to global challenges. One of the highlights of the declaration is that China and France are committed to taking effective measures to address risks associated with this technology.
Both countries are also on the same page about the basic rules for AI governance. They agreed to take into account the flexibility required for the rapid development of technology, while providing necessary protection for personal data, the rights of users and the rights of users whose work is used by AI. They also committed to promoting secure, reliable and trustworthy AI systems, adhering to the principle of "AI for good."
Zeng Yi, a professor of AI at the Chinese Academy of Sciences and also an expert of the UN Secretary-General's Advisory Body on AI who participated in the formation of the declaration, told the Global Times on Tuesday that this consensus reflects the alignment of both parties on issues including ethics, safety, security and the governance of AI at a fundamental level, laying the foundation for pragmatic and in-depth cooperation between the two countries in the field of AI governance.
Cooperation between China and France can drive collaboration in the field of AI between China and Europe as a whole, Liu Wei, director of the human-machine interaction and cognitive engineering laboratory at the Beijing University of Posts and Telecommunications, told the Global Times on Tuesday.
Liu Wei said both sides have great potential in working together on research into the development and application of AI technology, as well as laws and regulations.
Liu Baocheng, director of the Center for International Business Ethics of the University of International Business and Economics, told the Global Times that both sides have significant complementary relationships in this field. Also, China's rapid development of new quality productive forces presents an opportunity for France to participate in China's development.
The next step will involve greater participation by research institutions and businesses to ensure the true implementation of the declaration Liu Baocheng noted.
Through closer AI governance cooperation, both sides can systematically share more solutions to address risks, such as privacy breaches and the lack of an effective ethical AI security framework, thereby minimizing and avoiding common risks and challenges facing all of humanity, Zeng said.
Another keyword mentioned in the declaration is "cooperation." It said that international cooperation in AI governance will rely on work conducted at the UN level, and China and France will help strengthen the network capabilities of all countries, especially developing countries, to address network threats related to AI development and bridge the digital divide among developing countries.
The joint declaration between China and France conveyed an image of responsible major powers to the world, presenting an overall approach to global AI governance, Liu Baocheng said.
Zeng said the declaration is in line with China's Global AI Governance Initiative, and the signing of the declaration is also one of the representative efforts China has made at the specific implementation level as a responsible AI power, after having proposed the initiative.
Regarding the idea of China-France cooperation to counter the "AI hegemony" of the US, Liu Baocheng said that in the field of AI, the US has been seeking to dominate the global rules system. However, the reality is that each country has its own strengths, and the hegemonic mind-set of the US is unlikely to be realistically delivered. The attempt by the US to rule the world with AI is a thing that is not sustainable, he noted.
A track-laying machine made a rumbling sound as concrete sleepers are placed on the roadbed. Two-hundred-meter-long rails extend and fall steadily onto the sleepers through a mix of manual labor and high-tech machinery.
This has become a common scene during track-laying construction on the Hungarian section of the Hungary-Serbia railway, the flagship cooperative project under China-proposed Belt and Road Initiative (BRI). Here, extended railway lines are connecting scattered cities into an accessible and dynamic network, linking Hungary and Serbia, two Central and Eastern European (CEE) countries ever closer together.
Engaged in a wide range of fields such as transportation, high-end manufacturing and mining, Chinese companies have been actively promoting economic development in the regional countries. The companies bring with them advanced technology, high-tech equipment, modern management concept, and integrate them to better meet local development needs, contributing to the economic growth and improvement of the people's livelihood there.
As the BRI now enters its second golden decade, this week's state visits by China's top leader chart the course for cooperation between China and the two CEE countries in their respective pursuit of high-quality development.
A number of Chinese companies rooted in Serbia and Hungary for many years have recently shared with the Global Times how they have achieved win-win cooperation and development under the BRI framework. The companies are looking forward to embracing new opportunities for high-quality development in the two countries.
Promotion of synergy
Along a section of the Hungary-Serbia railway in Hungary, which is been built by a Chinese company, track laying work is progressing smoothly. Since the job officially commenced at the end of May last year, about 70 percent of track laying work within the section has been completed, with the overall project completion rate exceeding 55 percent, the Global Times learned from China Railway Hungary-Serbia Railway Project Management Department, the Chinese company participating in the construction of the Hungarian section of the railway project.
By the time of its completion, the regional transportation network will be significantly improved, providing greater convenience for both passengers and cargo delivery across the CEE economies.
The Hungary-Serbia railway could well illustrate how China's BRI projects can help promote the regional economic synergy.
At a heavy equipment manufacturing plant in Ruma, Serbia, excavators and haulage vehicles were seen navigate through the site, accompanied by the rhythmic sounds of welding, cutting, and hammering. Amid this activity, workers diligently carry out tasks such as reinforcing steel bars and pouring foundation concrete, ensuring an organized and efficient work flow.
China Construction First Group has participated in the construction of the new factory project. With a keen focus on meeting the deadline, they aim to complete the prefabricated components during the second half of 2024. Once finished, this facility, owned by the Chinese company Haitian Group, will serve as a pivotal manufacturing hub for equipment like injection molding machines in the European region, the Global Times learned from China Construction First Group.
Chen Shuai, deputy general manager of the Fifth Construction Co, China Construction First Group, told the Global Times that the company is seizing the opportunity presented by the successful execution of the factory project in Serbia, to facilitate the expansion of China's industrial manufacturing capacity overseas.
As the bilateral strategic partnership relations deepen, Chen holds strong expectations for further tapping into the potential for deeper cooperation for Chinese companies in Serbia.
Specifically, they will ramp up efforts to capitalize on the burgeoning development of infrastructure in Serbia, participating in projects spanning roads, bridges, tunnels, and renewable energy production, among other industrial lines, Chen said.
Serbia Zijin Copper DOO in Bor, Serbia, a joint venture between China's Zijin Mining Group and Serbia, sets a good example of how the BRI prompts greater synergy in the regional development. By the end of 2023, the copper mine project in Bor had amassed investments totaling $2.498 billion, nearly double the promised investment of $1.26 billion in 2018, the company told the Global Times.
With a cumulative copper production of 356,000 tons and gold production of 9.8 tons, the project contributed nearly $500 million in taxes and fees and made a social contribution of $850 million, according to the company. Also, it created over 9,000 jobs. In 2023, the company achieved export revenues of around $720 million, significantly promoting the mutual development of stakeholders in Serbia.
Looking ahead, the company plans to add $1.2 billion in new investments in the next three years. The goal is to increase copper production of the copper mine in Bor from currently 120,000 tons per year to 220,000 tons per year by 2030, the company said.
High-quality growth
As the BRI embarks on its new journey after10 years of golden development, more possibilities will emerge in the cooperation between China and the regional countries.
The meetings between the top leaders of China and the regional countries this week have set the tone for deepening the bilateral ties while pushing the cooperation toward high-quality development.
In the joint statement signed on Wednesday between China and Serbia, both sides vowed to take the opportunity of entering a new stage of high-quality development in the joint construction of the BRI. They aim to deepen and expand cooperation in various fields, including trade, investment, technology innovation, digitalization, and telecommunications.
Meanwhile, China and Hungary are also expected to sign multiple cooperation agreements following the important meetings between leaders of the two countries, injecting new momentum into the development of bilateral relations.
In a recent interview with the Global Times, Chinese Ambassador to Hungary Gong Tao said that, in the future, both sides will continue to promote high-quality joint construction of the BRI, focusing on key areas such as digital economy, green development, and information technology.
During recent years, China has actively promoted cooperation with the CEE countries under the BRI. This initiative has yielded tangible benefits for the region, effectively enhancing connectivity between China, Eastern Europe, and the broader European region, Song Wei, a professor from the School of International Relations at Beijing Foreign Studies University, told the Global Times on Thursday, describing China-CEE cooperation as a role model for cross-regional collaboration.
Despite the marked progress, economic development in CEE is still encountering some challenges, including poverty reduction, and how to achieve faster economic modernization in the region, according to Song.
Song emphasized that amid the pursuit of high-quality cooperation and partnership, China will remain committed to further supporting CEE countries in integrating them into the global value chain.
Specifically, Song said that enhancing mutual investment programs, including on setting up joint investment funds, would incentivize more local enterprises in CEE to participate in the BRI.
The countries in the region are eager to draw from China's successful developmental experiences. Therefore, both sides may intensify efforts to collaborate on a series of training programs and exchanges, facilitating mutual learning and development in the future, Song said.
"The commitment aims to foster closer economic and trade ties between China and the CEE economies, assisting the region to better tackle its corresponding challenges in the future," Song said.
On the early morning of Saturday, a geomagnetic storm brought a breathtaking gift to China -- the aurora borealis lit up the skies across various regions of the country, attracting visitors and photographers to enjoy the stunning beauty.
At 9:32 am on Saturday, the National Space Weather Monitoring and Early Warning Center under the China Meteorological Administration issued a red alert for geomagnetic storms, predicting moderate to high solar activity levels in the next three days, with the possibility of M-class or even X-class flares, leading to small to large geomagnetic storms, and even severe geomagnetic storms.
Regions such as Altay in Northwest China's Xinjiang Uygur Autonomous Region, Mohe in Northeast China's Heilongjiang Province, and North China's Inner Mongolia Autonomous Region were among the best destinations to witness natural phenomenon.
Altay, located in the northern part of Xinjiang, became a hotspot for tourists and photography enthusiasts eager to witness this natural wonder. The night sky was adorned with colorful auroras, creating a mesmerizing spectacle for all who gazed upon it.
As people stepped out of their homes at night and looked up at the sky, they were treated to a display of colorful auroras dancing across the night sky, creating a dreamlike atmosphere. The auroras, like a magical gift from nature, captivated onlookers, leaving them spellbound.
With its cold climate and high altitude, Altay has become a prime location for aurora viewing in recent years, drawing tourists from both domestic and international destinations.
Also in Mohe, located in the northernmost part of China, the night sky was illuminated with vibrant shades of purple and red, attracting tourists from far and wide.
One such tourist, Ma Jingxuan from Beijing, embarked on a road trip to Mohe specifically to witness the mesmerizing display of red auroras. "I drove all the way from Beijing and finally caught a glimpse of the northern lights. It was absolutely beautiful and awe-inspiring," Ma exclaimed as he captured the magical moment with his camera, the Guangming Daily reported on Saturday.
This year, Mohe has witnessed multiple occurrences of the northern lights, drawing in visitors from all corners of the country. Interestingly, the phenomenon of the northern lights even extended as far south as Beijing on Saturday. Photographer Wang Kai seized the opportunity to capture the enchanting moment in the capital city, a local Beijing media outlet reported.
Experts predict that parts of Beijing and Hebei may witness the northern lights again on Sunday. They recommend observers to head to the northern mountainous areas of Beijing such as Yanqing, Miyun, and Huairou districts for the best viewing experience, away from light pollution and with a clear, open view of the sky.
According to a diagram from magazine Chinese National Geography, the color of the aurora varies depending on the distance from the observer. Red auroras are typically seen at distances greater than 300 kilometers, while green auroras are more common at distances between 100 to 200 kilometers. The closer one is to the aurora, the more vibrant and colorful the display becomes.
Meanwhile, in other high-latitude regions around the world, the stunning phenomenon of the northern lights has also been making appearances. From northern Switzerland to Dublin, Ireland, and various locations in the UK, the night skies have been painted with hues of green, red, and purple, creating a magical and ethereal atmosphere for all those lucky enough to witness it.
The ongoing solar storms are expected to continue to be active in the next two days, allowing for the possibility of widespread auroras in the northern hemisphere.
The ministry of defense of the Afghan Taliban government on Wednesday rejected Pakistan's allegations that Afghans were involved in a terror attack in which five Chinese nationals were killed in Pakistan in March. Chinese analysts called for a thorough investigation into the attack and urged regional countries to strengthen joint counter-terrorism efforts as the anti-terrorism situation in Central and South Asia deteriorates.
Mufti Enayatullah Khorazmim, the spokesperson for Afghanistan's Taliban-run Ministry of National Defense said on Wednesday that Afghans were not involved in the March terror attack and claimed that "blaming Afghanistan for such incidents is a failed attempt to divert attention from the truth of the matter," according to a Reuters report on Wednesday.
Pakistan military spokesman Major-General Ahmed Sharif told a news conference in Islamabad on Tuesday that the suicide bomb attack in March was planned in neighboring Afghanistan, "the car used in it was also prepared in Afghanistan, and the suicide bomber was also an Afghan national," according to media reports.
Five Chinese nationals and their Pakistani driver were killed in a suicide terror attack on March 26 at the China-invested Dasu hydropower project. The Chinese Embassy to Pakistan has demanded Pakistan to conduct a thorough investigation and punish the culprits severely.
Chinese analysts emphasize the importance of conducting a comprehensive and impartial investigation into the terrorist attack, with detailed and compelling evidence presented. They underscore that China should refrain from becoming embroiled in the disputes of other countries, and the safety and interests of Chinese citizens and companies must be ensured.
Tensions between Pakistan and Afghanistan have heightened amid recent security concerns. The Pakistani army and government have accused the Tehrik-e Taliban Pakistan (TTP) of launching attacks on Pakistan from Afghan territory, although the Afghan Taliban have denied these allegations.
China has always emphasized the necessity of a comprehensive investigation and swift apprehension of perpetrators, and it does not wish to become entangled in the affairs of any other country, Zhu Yongbiao, director of the Center for Afghanistan Studies at Lanzhou University, told the Global Times.
Zhu said that it is alarming that the anti-terrorism situation in the Central and South Asian region, especially in the area centered around Afghanistan, is showing a deteriorating trend, with extensive interconnection and communication among terrorist and extremist groups, necessitating attention from all nations.
The international community must not disregard the issue of counter-terrorism, particularly in the Central and South Asian region, where the influence of terrorism is on the rise, said the expert.
Each country, including Pakistan and Afghanistan, may need to pragmatically seek a comprehensive solution to counter-terrorism issues amid disputes. This is essential to prevent the proliferation of terrorist forces, which could jeopardize national political security and regional stability, Zhu said.
China's special envoy for climate change Liu Zhenmin will travel to the US from May 7 to 16 for talks with his US counterpart. The first formal talks between climate envoys from both countries carry great significance as it is expected they can continue and extend the positive exchange between the two countries in addressing climate change, according to observers, while also warning that the coming US presidential election could cloud the future cooperation.
Liu will lead a delegation for talks with US Special Presidential Envoy for Climate John Podesta, the Ministry of Ecology and Environment said Tuesday.
The ministry said that Liu will exchange in-depth views on the "The Sunnylands Statement on Enhancing Cooperation to Address the Climate Crisis," which was issued by two countries in November last year; and other consensuses, as well as promote practical results in advancing China-US climate cooperation.
During this visit, Liu will also engage in discussions with relevant United Nations departments, as well as local governments and think tanks in the US, on topics related to climate change and other issues.
China will aim to extend cooperation on issues including energy, the circular economy and efforts to curb greenhouse gases beyond carbon dioxide, Liu told Bloomberg last month.
"Common ground means that both the US and China want to continue to lead this global process to respond to climate change," he said. "We have to cooperate as far as possible." The nations "also need to respect each other on all issues," according to Liu.
Energy transition, non-CO2 greenhouse emission such as methane, along with other issues are likely to top Liu's talks with Podesta, as those topics are of mutual concerns and energy transition is facing grave challenge amid complicated international situation, Ma Jun, director of the Beijing-based Institute of Public and Environmental Affairs, told the Global Times on Tuesday.
Ma believed trade issues will also top the list of discussion as the US has been using trade protectionism in key products and technologies for low-carbon transformation.
Podesta previously laid out the clearest declaration yet of the Biden administration's willingness to upend global trading rules — which the US fostered — to achieve its twin objectives of limiting carbon emissions and Chinese dominance of key industries, Bloomberg reported.
Liu and Podesta, both appointed to their roles in January, have spoken virtually and met in person briefly at the Petersburg Climate Dialogue in Berlin in April.
The strong personal connection between their predecessors Xie Zhenhua and John Kerry has kept climate talks between China and US alive even when bilateral relations spiraled to a low point, experts said.
The first formal talks between two climate envoys carry great significance as it is hoped they can continue and extend the positive exchange on climate issues between China and US, Ma said, noting that the strong bond doesn't come easy, and it needs time to establish the mutual trust.
Yet there's also concern that the coming US presidential election could cloud future cooperation. Speaking with Bloomberg, Liu said "I definitely hope that the American people will support the government to stay in the climate change process, stay in the Paris Agreement, even if Trump wins the next election…Not to repeat the mistake that they made during his last administration."
Ma said that US' withdrawal from the Paris Agreement another time will not only disrupt climate collaboration between Beijing and Washington; it is also likely to greatly set back global effort in tackling global warming. The uncertainty, however, highlighted the importance of dual-track communication between two countries, which comprises both exchange between central government level and sub-national, and non-governmental cooperation, according to Ma.
California Governor Gavin Newsom paid a visit to China in November last year. In a press release issued addressing his visit, Newsom's office said his trip prioritized three goals -- advancing climate action and cooperation, promoting economic development and tourism, and strengthening cultural ties.
On his trip, California signed five Memorandums of Understanding (MOU) with China's National Development and Reform Commission, the provinces of Guangdong and Jiangsu, and the municipalities of Beijing and Shanghai, according to the release.
"These MOUs advance California and China's work on climate policy and help set the stage for national discussions and partnerships," the release read.
Editor’s Note: China and Serbia have long been renowned for their “iron-clad friendship.” The bond between the two nations continues to strengthen with frequent exchanges between their leaders. In early May, Chinese President Xi Jinping will pay a visit to Serbia, which will be his second visit to the country in eight years, and is expected to mark an important milestone for strengthening and elevating China-Serbia ties.
Before the significant visit, Global Times reporters Shan Jie and Xie Wenting interviewed Chinese Ambassador to Serbia Li Ming. Through his words, the ambassador offers a profound look at the robust China-Serbia relations, underscored by a shared history and a vibrant cultural exchange, while emphasizing Serbia’s integral role in the Belt and Road Initiative and the impact of the China-Serbia Free Trade Agreement on economic collaboration.
GT: What impressions has Serbia left on you? What message do you want to convey to the local people?
Li: Serbia is a uniquely charming country. Situated in Central and Eastern Europe in the Balkan region, it boasts a rich history and vibrant culture where Eastern and Western civilizations have met and mingled over millennia, producing significant achievements in human civilization. Additionally, Serbia is blessed with splendid natural beauty, from its vast plains and river valleys to its mountainous landscapes, all captivating to behold.
What impressed me most, however, was the warmth of Serbian people and their profound friendship with the Chinese people. Both countries view each other as iron-clad friends, a bond not only rooted in our historical traditions but also thriving anew in the new era.
Upon arriving in Serbia, I was pleased to witness numerous fruitful Chinese-Serbian collaborations taking root and flourishing, and to feel the warm, friendly support of the Serbian people for our bilateral cooperation.
As President Xi Jinping has stated, “The modernization we are pursuing is not for China alone, but for all developing countries through our joint efforts.” I am confident that under the careful guidance and leadership of our heads of state, China-Serbia relations will continue to yield fruitful outcomes in the new era, bringing tangible benefits to both peoples and setting a model for the region and the world.
GT: How do you evaluate the current state of China-Serbia relations? In which areas do you plan to deepen cooperation?
Li: China and Serbia are close friends and partners, sharing an “iron-clad friendship” that has endured through history and remains vibrant amid global changes. The frequent interactions between our leaders have charted the course for our relationship. In recent years, President Xi Jinping and President Aleksandar Vucic have met multiple times and maintained a close communication. In October 2023, President Vucic led the largest-ever Serbian delegation to China for the Third Belt and Road Forum for International Cooperation (BRF III). Under the strategic guidance of both leaders, our comprehensive strategic partnership maintains robust development, with close exchanges at all levels and unwavering mutual support on issues of core interest and major concern, deepening political trust.
Our economic and trade cooperation has strengthened both economies. Bilateral trade continues to grow, with China being Serbia’s largest source of imports, second-largest trading partner, and a significant direct investor. Serbian Zijin Mining Group, HeSteel Group (HBIS), and Serbian Zijin Copper company, all Chinese-funded enterprises, rank among Serbia’s top exporters. Under the Belt and Road Initiative (BRI), our infrastructure projects stand out, including the Belgrade Zemun-Borca Bridge, the first bridge built by a Chinese company in Europe, and the E763 highway, the first highway constructed by a Chinese company in Europe. The Hungary-Serbia railway, a flagship BRI project, marks China’s first high-speed rail project in Europe and the first in the Central and Eastern European region.
Cultural exchanges have also bridged our friendship. The traditional bond between our countries has been strengthened by reciprocal visa exemptions, mutual driving license recognition, and direct flights. The interest in Chinese culture remains high in Serbia. The Spring Festival of the Year of the Dragon saw the Chinese Embassy in Serbia host a series of popular “Happy Spring Festival” events. With the establishment of the Chinese Cultural Center in Belgrade, China-Serbia cultural exchanges have gained a new platform.
China will continue to work with Serbia, guided by the important consensus of our leaders, leveraging mechanisms such as the China-Serbia Free Trade Agreement and the Belt and Road mid-term action plan. We will deepen cooperation in traditional fields and accelerate development in digital and green economies, exploring new potential in innovation, new energy, biotechnology, and environmental protection. Recently, Chinese automakers Chery, Geely, and Lynk & Co showcased their products at the Belgrade Motor Show, adding highlights to China-Serbia economic and trade cooperation. I believe the scope of our collaborative endeavors will only expand, broadening the path of cooperation between our two countries.
GT: In your view, how has the BRI impacted China-Serbia relations and cooperation? Please detail two successful cooperation projects you have observed.
Li: Serbia is a key partner in the BRI, being among the first European countries to sign a cooperation agreement with China. The integration of the BRI into Serbia’s national development over the last decade serves as a model for the international community. Projects like the Hungary-Serbia railway, the Belgrade Ring Road, the Sava River Bridge, and the Smederevo steel plant have significantly improved the daily lives of locals, boosting employment, trade, and investment, and injecting new vigor into Serbia’s development. Among these, the Smederevo steel plant and the Hungary-Serbia railway stand out as exemplary cases.
The Smederevo steel plant, once hailed as the pride of Serbia and boasting over a century of history, faced closure due to mismanagement. In 2016, under the BRI, China’s HBIS signed with the Serbian government to establish HBIS Group Serbia Iron & Steel. In less than six months, the steel plant turned profitable after seven years of losses, becoming Serbia’s largest exporter for four consecutive years. Importantly, all 5,000 Serbian employees were retained, rekindling hope for thousands of families and exemplifying the success of China-Serbia cooperation under the Belt and Road framework.
In 2013, the Hungary-Serbia railway project was announced shortly after the implementation of the BRI. In 2022, the Belgrade-Novi Sad section of the Hungary-Serbia railway was completed and opened to traffic, reducing the travel time between the two cities from 90 minutes to 30 minutes. Over the last two years, the Belgrade-Novi Sad section of the Hungary-Serbia railway has transported over 7 million passengers. Excited about the project, President Vucic said, “This is a significant change for the Serbian people and the entire country.” The Serbia section of the Hungary-Serbia railway line is expected to be completed by the end of 2024, and it is believed that it will become the “road to happiness” and “road to prosperity” for the Serbian people, as well as a road of friendship between China and Serbia.
The Smederevo steel plant and the Hungary-Serbia railway are both examples of successful cooperation between China and Serbia, and they are fruitful results of the BRI. Under the guidance of the BRI, China and Serbia will continue to uphold the principles of extensive consultation, joint contribution, and shared benefits, focusing on connectivity and achieving new brilliant results in policy communication, facility connectivity, trade facilitation, financial integration, and people-to-people bonds.
GT: What new impetus has the China-Serbia free trade agreement (FTA) injected into the economic and trade cooperation between the two countries and what has it achieved?
Li: The China-Serbia FTA is the first free trade agreement signed between China and a Central and Eastern European country, and it is also the 22nd free trade agreement signed by China. Serbia has become China’s 29th free trade partner globally.
After the agreement comes into effect, both countries’ citizens and businesses will benefit from it. Serbian producers and traders can actively utilize the free trade arrangement between the two countries to access major consumer markets worldwide, and attract Chinese and European investors to invest in Serbia. Serbia has made high-level commitments in sectors such as manufacturing, construction, and information communication, providing Chinese companies with greater certainty and broader opportunities to explore the Serbian market and even the Central and Eastern European markets. The China-Serbia FTA will help both sides to achieve high-level mutual openness, establish new institutional arrangements for bilateral economic and trade cooperation, create a more favorable, convenient, transparent, and stable business environment for businesses from both countries, and inject new momentum into promoting high-quality joint construction of the BRI and deepening the comprehensive strategic partnership between China and Serbia.
GT: Please introduce the Belgrade China Cultural Center to our readers. How do you feel about the cultural and people-to-people exchanges between the two countries? What activities can we look forward to in the near future?
Li: The Belgrade China Cultural Center holds a very special position and significance among the dozens of Chinese cultural centers overseas. It stands on the site of the former Chinese Embassy in the Federal Republic of Yugoslavia in Belgrade, which was bombed by NATO in 1999, symbolizing the rebirth and indomitable spirit of the Chinese nation. It bears witness to the deep friendship forged by the Chinese and Serbian people with blood and life, and also demonstrates the Chinese people’s love for peace and their national character of not fearing power.
The cultural center has now started operating, becoming a convenient window for the Serbian people to learn about China and experience Chinese culture. It has become a new platform for telling Chinese stories and showcasing China’s images, as well as a bridge for promoting cultural exchanges and mutual learning between China and Serbia.
The cultural center not only provides opportunities for Chinese cultural displays and teaching such as calligraphy, tea art, musical instruments, dance, and martial arts, but also focuses on building its own cultural brand activities. In May 2024, the center will host the first “Tea and the World” event in conjunction with International Tea Day, followed by the first China-Serbia Dragon Boat Festival, the 2024 Chinese Film Week, and the “Hello! China” tourism promotion event.
GT: What exemplary role and positive impact have China-Serbia relations played on the cooperation between China and Central and Eastern European (CEE) Countries?
Li: As an important country in Central and Eastern Europe, Serbia is walking hand in hand with China, and bilateral relations are steadily developing. This not only sets an example for cooperation between China and CEE countries under the BRI, but also injects more stability into China’s relations with Central and Eastern European countries. The successful practice of China-Serbia cooperation fully proves that China and CEE countries can become good friends and partners in the process of jointly moving toward modernization.
China is willing to work together with countries in Central and Eastern Europe to firmly grasp the overall direction and main tone of the development of bilateral relations from a strategic height, respect each other, achieve mutual benefit and win-win results, and promote regional peace, stability, and prosperity.
GT: What’s your take on President Vucic’s recent remarks on the Taiwan question? How have China and Serbia supported each other on issues concerning each other’s core interests and major concerns?
Li: At the beginning of this year, in an interview with China’s state news agency, President Vucic used a 10-stopwatch to illustrate Serbia’s firm position of adhering to the one-China principle, and then in an interview with the media, he clearly stated that Taiwan belongs to China.
President Vucic’s remarks on the Taiwan question not only spoke to the just call of the international community, but also strongly demonstrated, once again, that China and Serbia have always firmly supported each other’s core interests and major concerns, and firmly supported each other’s development path choice.
China and Serbia are true friends and good partners who trust each other. Over the years, Serbia has firmly supported China on issues related to Taiwan, Hong Kong, Xinjiang, and human rights, and China has always firmly supported Serbia in safeguarding national sovereignty and territorial integrity. China is willing to continue to respect, support, trust, and treat each other as equals with Serbia and push forward the comprehensive strategic partnership between the two countries.
Amid ongoing tensions in the South China Sea, Philippine Ambassador to the US Jose Manuel Romualdez claimed that he is expecting the Armed Forces of the Philippines (AFP) to be fully ready in its defense posture against "any threats" in the region by the end of the term of Philippine President Ferdinand Marcos Jr, especially with the help of the US.
Analysts said that the ambassador's remarks were an expression of the Philippines' overconfidence in its capabilities and excessive optimism in its alliance with the US, and more of an attempt to garner more domestic support. Uncertainty will always remain about whether the US will keep its commitment or just try to make its allies share the costs of defense.
In an interview with Philippine media Super Radyo dzBB on Sunday, the envoy hailed Manila-Washington ties as currently being "at its best," with the two sides "rebooting" relations under Marcos Jr, the envoy's relative.
The ambassador said the Philippines has bipartisan support in terms of the South China Sea issues, and believed Manila should strengthen its armed forces and deterrence capabilities, according to a GMA News report.
He said he is expecting that with US help, the Armed Forces of the Philippines will be "fully ready in our defense posture and strategy" by the end of President Marcos' term.
The envoy said that the Philippines will prioritize developing its maritime forces, particularly the Navy and Coast Guard.
Chen Xiangmiao, director of the World Navy Research Center at the National Institute for South China Sea Studies, told the Global Times on Monday that the ambassador's remarks suggest that the Philippines is overconfident in its own capabilities and overoptimistic about US commitment.
According to Chen, the cost of developing a navy is extremely high, and it is difficult to achieve a significant increase in capabilities in a short time.
"The Philippine defense industrial base is still too weak, and lacks professional personnel, which means the time and cost for Manila will be even longer and larger," he said.
Despite economic forecasts for Philippines' GDP growth in 2024 being at around 6 percent, Chen said the country also faces many problems such as rising unemployment, inflation, rural development problems and lack of infrastructure construction, which all require huge amounts of financial support from the government, Chen said.
Earlier in April, two US senators introduced a bipartisan bill to provide Manila with $500 million a year in Foreign Military Financing (FMF) grant assistance over the five fiscal years to 2029.
In general, the US provides assistance to the Philippines in several fields, including the upgrading of weapons and equipment, troops training, and investment attached to the construction of US military bases in Philippines.
This assistance will not narrow the power gap between China and the Philippines, nor will it change the overall structure of military forces in the entire region, especially when the focus of American military aid is on Ukraine and Israel, Chen said.
The Philippines will find it hard to match its military strength with that of Vietnam, Thailand, Malaysia, Indonesia, Singapore and other Southeast Asian countries in a short time, said Chen.
"So what the Philippines ambassador is emphasizing now is more about speaking to the domestic public to gain some support," said Chen, "but these words were only the result of false signals from the US and the Philippine government's deliberate cover-up of some facts."
