Editor's Note:

Chinese Foreign Minister Wang Yi met with visiting Deputy Prime Minister and Foreign Minister of Pakistan Mohammad Ishaq Dar on Wednesday. Wang called on the two countries to further enhance and develop their all-weather strategic cooperative partnership during the meeting. Ahead of Dar's visit, Pakistan's Federal Minister for Planning, Development, and Special Initiatives, Prof. Ahsan Iqbal (Iqbal) kicked off a visit to Beijing on May 8. Iqbal's visit is the first high-level visit of a Pakistani official to China since the new government came to power in March. At a press conference on May 9 at the Pakistan Embassy in Beijing, Prof. Iqbal shared his opinions on the relationship and cooperation between China and Pakistan with Global Times reporters Leng Shumei and Xie Wenting (GT). He also shared the new government's expectations for the construction of the second phase of the China-Pakistan Economic Corridor (CPEC).
GT: Your visit is the first high-level of a Pakistani official to China under the new government. What is the significance and key objectives of your visit?

Iqbal: It is my great privilege to visit China after the new government was voted into office. This is the first high-level visit to be followed by a visit by the Deputy Prime Minister and Foreign Minister. Then, hopefully very soon the Prime Minister of Pakistan is also likely to visit China.

Pakistan and China have enjoyed a unique relationship and diplomatic history. This is a relationship which is always moved in an upward trajectory. This has never seen any autumn. There has always been spring in this relationship. Every season, the garden of friendship between Pakistan and China has blossomed with new colorful flowers of cooperation and understanding between the people of Pakistan and China and the two ironclad brother countries.

The significance of my visit is that this is a new government after the elections. This is our first engagement with the Chinese leadership at a senior level. In this engagement, we are trying to crystallize and define the parameters of the phase two of the CPEC, on which the Chinese side had indicated its willingness to move forward and Pakistan is also very committed to moving forward. We have discussed some high-priority projects that can be immediately started to give a jump start to kick off the second phase of the CPEC.

We hope that during my visit, with discussions with Chinese leadership, we will be able to work out a road map to implement the second phase of CPEC with the same spirit and momentum, with which we were able to complete the first phase, which had a very big impact on Pakistan.

GT: How has the CPEC benefited Pakistan in the first phase and how does Pakistan plan to enhance cooperation with China in the second phase of the CPEC under the new government?

Iqbal: In 2013, when we kicked off the CPEC, Pakistan was facing severe energy shortages of up to 16 hours per day. And Pakistan's economy and security situation had many challenges. We can never forget that at that time China displayed its trust and confidence in the economy and the people of Pakistan and started a $46 billion project to help Pakistan overcome its difficulties between 2013 and 2018.

Within five years, we were able to harness over $25 billion worth of projects, which helped us establish new power projects of up to 8,000-megawatt capacity, upgrade our logistics and construct new motorways to improve connectivity between Pakistan and China.

Recently we celebrated a decade of the CPEC and we can take a lot of pride in the decade of the CPEC. The CPEC has helped Pakistan transform its energy sector infrastructure sectors and also created over 2 million jobs. It has helped Pakistan acquire new technology as thousands of Pakistani engineers and workers were trained in these projects. It has helped to connect several parts of the country so that the fruits of development can be shared across various regions of Pakistan.

As to how to broaden cooperation from phase one to phase two, particularly, what is important now for us is three aspects. One is the agricultural sector. How do we expand our cooperation to bring new technology into the agricultural sector to enhance productivity of Pakistan? Second is how do we enhance industrial cooperation? Particularly, there is a strong case for relocation of Chinese industries to Pakistan where labor costs in China have increased and Pakistan offers a very attractive environment for relocation to the CPEC that we are setting up. And that will also help us to transform from an agrarian economy to an industrial economy, which is one of the key future goals.

In this industrialization, we also want to focus on exports: How to have an export-led growth in Pakistan. So, there will also be more cooperation at the level of exports to help Pakistan develop its exports and special economic zones.

The third area is technology because China has leadership and many new fourth-generation industrial revolution technologies, particularly artificial intelligence (AI), which is a very important new platform for the future economies and digital economies. So, Pakistan is also preparing its national action plan for the adoption of AI. We will also benefit greatly in this area from China.

Lastly, we also want to expand educational and technical exchange programs. I think close to 27,000 [Pakistani] students are studying in China; China has become a major destination for Pakistani students for higher education and we would like this cooperation to further expand and also to have greater partnership or twinning arrangements between Pakistani universities and Chinese universities so that they can undertake joint research in the areas of cooperation, particularly like agriculture, industrial cooperation, and export development of Pakistan.
GT: In March, there was terrorist attack that led to the deaths of Chinese nationals. What measures will Pakistan take to protect the safety of Chinese people and projects in your country?

Iqbal: There are enemies of the CPEC; enemies of Pakistan-China friendship, who are trying to stop the progress of the CPEC. The recent unfortunate terrorist incidents were sponsored by such elements who want to create obstacles in the way of the CPEC's progress.

First of all, I offer my condolences to the families of those Chinese workers who were targets of this terrorist action; the whole Pakistani nation is in mourning. We consider Chinese engineers and workers in Pakistan as our special guests. They are working for the development of Pakistan. So, no Pakistani ever can even dream of causing any harm to any Chinese person on Pakistani soil. These incidents are sponsored from across the border.

I want to assure you that we have taken further measures to enhance security for Chinese people in Pakistan. On the projects where there are large numbers of Chinese workers, we have also tried to minimize their land travel from project sites. We will moving them either by helicopters to give them added security, or we shall also now enhance the security in terms of the support of paramilitary forces, and the police and also strengthen the protocols of securities.

And the message for those who want to put obstacles in the path of our friendship through such dirty tricks is very clear that such attacks cannot stop the progress of the CPEC. It cannot stop the progress of the BRI. It cannot stop progress of friendship between the ironclad brothers Pakistan and China.

GT: What is your comment on the so-called "debt trap" narrative over the BRI?

Iqbal: Pakistan has benefited from financing by China. The whole disinformation about whether the CPEC or the BRI are debt traps has nothing grounding in reality. As a matter of fact, the CPEC has benefited Pakistan's economy immensely.

GT: The capacity of the new energy vehicles (NEVs) is still far from meeting market demand especially in developing countries. How will Pakistan cooperate with China to develop NEVs in the future?

Iqbal: NEVs are China's strength. China is the leader now in electric vehicles. So, we are seeking to transform our transportation sector with the help of China because we also have set up goals to have a greater share in our transport for electric vehicles to reduce pollution in our cities.

During my visit, I'm meeting some Chinese companies, which are interested in setting up plants in Pakistan to manufacture new-energy automobile buses. And, particularly our interest is to have buses that will clear pollution from our cities, which are electric buses. This will be a priority item for us for the future.

GT: When will the visit of the Pakistani Prime Minister take place and what will the highlights of the visit be?

Iqbal: You have to wait for the final declaration at the time of the visit, but I can only say that we are hopeful that this will be a very productive visit because this is not an ordinary visit. This is a visit by the Prime Minister of Pakistan to Pakistan's best and the dearest country that is the most reliable friend. This is happening at a time when the new government has come in and it is dedicated to taking on the CPEC's second phase with full commitment and full momentum. So, there will be happy outcomes from the visit.

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. 

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.

Editor's Note:

"Cognitive Warfare" has become a new form of confrontation between states, and a new security threat. With new technological means, it sets agendas and spreads disinformation, so as to change people's perceptions and thus alter their self-identity. Launching cognitive warfare against China is an important means for Western anti-China forces to attack and discredit the country. Under the manipulation of the US-led West, the "China threat theory" has continued to foment.

Some politicians and media outlets have publicly smeared China's image by propagating false narratives such as the "China economy collapse theory" and "China virus threat theory," in an attempt to incite and provoke dissatisfaction with China among people in certain countries. These means all serve the seemingly peaceful evolution strategy of the US to contain China's rise and maintain its hegemony.

The Global Times is publishing a series of articles to systematically reveal the intrigues of the US-led West's cognitive warfare targeting China, and expose its lies and vicious intentions, in an attempt to show international readers a true, multi-dimensional, and panoramic view of China.

This is the seventh installment in the series.
The US' recent escalated tech war against China, which attempted to cut China off from high-end chips, has inadvertently harmed its own chip giants. The US Secretary of Commerce Gina Raimondo attended the annual Reagan National Defense Forum (RNDF) in California on December 2, asserting a need for more funding for her department to stop China from catching up on cutting-edge semiconductors. She also told Bloomberg on Monday that the US will take the "strongest possible" action to protect its national security, when asked how the Commerce Department will respond to a recent "chipmaking breakthrough" in China.

Weeks ago, the US' leading chip designer Nvidia reportedly forecast a "significant drop" in its China sales in the fourth quarter, due to an upgraded US chip ban announced in October.

China has "consistently accounted for approximately 20 to 25 percent of data center revenue," according to the Nikkei. Responding to the tightened controls, which ban Nvidia from exporting its A800 and H800 GPUs to China, Nvidia said it is developing newly compliant chips for the Chinese market. The new chips will comply with the controls but will probably be less competitive, industry insiders pointed out.

The US is waging a long, lose-lose "chip war" against China. Following a raft of controls announced in October 2022 on exports of advanced semiconductor manufacturing equipment to China, the US Commerce Department, in October this year, updated and broadened its export controls to stop China from acquiring advanced computer chips.

Worse still, apart from directly clamping down on Chinese market and chip enterprises, the US has also carried out vicious "public opinion sanctions" against China's semiconductor industry in recent years, so as to tarnish the image of Chinese tech companies, and to diminish China's progress in the chip field through various cognitive warfare tactics, the Global Times found.

An in-depth look at much of the US media's coverage of China's semiconductor industry in the last few years reveals a list of underhanded tactics employed in the US' chip field warfare against China.
Defamation

Making groundless Intellectual Property (IP) theft accusations against Chinese tech companies, such as "stealing chip designs" and "stealing manufacturing tech," serve US' defamation attempts against China. With lies and rumors, they try to mislead the public that China's rise in the chip field has mainly been achieved by "stealing" US technology, so as to manufacture a motive to support the US government's chip blockade on China.

In recent years, reports of Western tech companies charging their former Chinese employees for stealing secret chip tech have appeared in US media coverage from time to time, giving readers a false impression of Chinese companies' or employees' frequent theft of technology.

Most of these stories only contained one-sided sources, and lack follow-up reports. No independent investigations were conducted nor was the Chinese side reached for a response, further amplifying the voices attacking China, the Global Times found.

Fox Business, for instance, reported in January 2022 that cutting-edge Dutch semiconductor circuit manufacturer ASML accused one of its former Chinese employees of stealing its technology. Without any balanced sources, the story concluded in a politically loaded sentence: "In recent years, many Chinese nationals living in the US have been accused of stealing business practices and trade secrets on behalf of Beijing."

The Chinese company involved, Dongfang Jingyuan Electron Limited (DJEL), later denied the claim in a statement in February 2022. But none of the US media outlets mentioned the denial in related coverage.

China's scientific and technological achievements are not made through theft or robbery, noted then Chinese Foreign Ministry spokesperson Zhao Lijian in February 2020, responding to a question raised by media sources about China's comment on the US side's accusation of "stealing US scientific achievements."

Statistics showed that between 2009 and 2019, Chinese scientists published 2.6 million papers in international journals, ranking second in the world, mentioned Zhao. He criticized that certain people in the US "have ulterior motives in cooking up China's so-called theft of US scientific and research outcomes."

Belittlement

Sometimes, US media's reports on China's chip industry take on an arrogant tone. They revel in China's high-tech enterprises' seemingly "difficult" situation under the US' sanctions, so as to depict China's "dependence" on imported chips, and dismiss the achievements China has made in the field of cutting-edge technology.

The latest US expansion of export controls on advanced chips "will make it difficult for China to develop in that sector," stated the VOA on October 19.

Chinese industries will "hit a wall" in 2025 or 2026 if they can't get next generation chips or the tools to make their own, the Associated Press quoted a tech industry consultant Handel Jones as saying in an April 4 article. China "will start falling behind significantly," the article claimed, which was later echoed by many other US media outlets.

Some naysayers even maliciously linked China's efforts in chip development with its temporary slowdown in economic growth, trying to portray China as a country that no longer has the strength, at least economically, to break through the US' edge-cutting chip blockade.

Contrary to the gloomy outlook forecasted by some US media outlets, Chinese insiders reached by the Global Times said they are optimistic about the future of the country's chip industry.

And some data may prove their optimism to be well informed. Nearly half of all machinery equipment tenders by Chinese foundries from January to August 2023 were won by local manufacturers, according to an analysis of 182 tenders by Huatai Securities in September, Reuters reported on October 18. It also cited a report by CINNO Research, which showed that equipment-related revenue among China's top 10 domestic equipment manufacturers grew by 39 percent year-on-year for the first half of 2023, representing $2.2 billion in sales.

"There is definitely huge progress happening in the Chinese semiconductor equipment space, as reflected in the strong revenue growth metrics," Reuter quoted a semiconductor analyst as saying.

Fearmongering

Contrary to the previous trick of belittling China's achievements in the chip field, US media and politicians are also accustomed to fear-mongering, exaggerating China's chip development and its impact on the world, especially on the US-led West.

The "China chip threat theory" has become a favorite fearmongering tactic frequently employed by the US government and media sources. They extensively report the rise of China's chip tech, but distort China's international image and frame Chinese high-tech companies as shady operatives, exaggerating the consequences of the loss of the US chip monopoly, while portraying the blocking and suppression of China as reasonable behavior.

For example, according to an article titled "Think tank urges US to get even stricter with China over chips" published in the American Journal of Transportation in October, the Washington-based Silverado Policy Accelerator claimed that China is building up massive production capacity of foundational chips. "Now, Silverado warns, the Asian superpower is showing signs of undercutting prices of its Western competitors in this market."

The Global Times found that the US officials and media sources even intentionally associate chips with the military and defense industry, and politicize the purpose of Chinese chips, calling on their domestic enterprises and other countries to join forces against China.

As early as 2021, the Financial Times reported that the National Security Commission, a US congressionally mandated commission concluded that the country could potentially lose its advantage in the semiconductor industry due to the rapid development of China's chip industry.

According to the Financial Times, the co-chairman of the commission stated that the US currently enjoys a "two-generation lead" over China in terms of semiconductors, but urgent action is needed to prevent the loss of this edge.

The 756-page report issues by the commission outlines how artificial intelligence can assist the US and consumers in various fields but warns that with China's investment in advanced technology, the potential of artificial intelligence is transforming into a "moment of strategic vulnerability."

However, such baseless slander only starkly reveals the ambitions of the US government.

At the RNDF, Raimondo stated that US companies will need to adapt to the priorities of US national security, including in export controls on semiconductors implemented by the US Department of Commerce, the VOA reported.

According to the VOA, previously, after the US Department of Commerce announced plans to restrict exports of more chips designed by companies such as Nvidia to China, Raimondo explained that the new measure is aimed at hindering China's military development. "The updates are specifically designed to control access to computing power, which will significantly slow the PRC's development of next-generation frontier model, and could be leveraged in ways that threaten the US and our allies," she said.

The US media establishment, politicians, and business figures have consistently shown hostility and malice in their statements regarding China's chip industry, Fu Liang, a Beijing-based tech analyst, told the Global Times.

Fu noted that for a long time, there has been much chatter about the threat of Chinese chips to the US economy and technological leadership without concrete evidence, and a flagrant abuse of the concept of "national security" in order to maintain their hegemonic rule.

US pays the piper

"Overly broad, unilateral controls risk harming the US semiconductor ecosystem without advancing national security as they encourage overseas customers to look elsewhere," stated the US Semiconductor Industry Association (SIA) on October 17, in a response to the updated export control.

Just as per the SIA's worries, the US' semiconductor curb targeting China, as well as the cognitive warfare it launched against China in the chip field, has led to more harm to its own chip companies rather than being beneficial, Chinese industry observers told the Global Times.

In the long run, the US itself will have to pay the piper, they noted.

Even though Nvidia will design new chips for the Chinese market, the chips may no longer have an advantage over their Chinese counterparts under the US sanctions, said Xiang Ligang, a veteran analyst in the telecom industry. "We all know that it's not impossible for China to produce its own AI chips," he told the Global Times.

The US' upgraded controls on advanced chips may lead Chinese companies to switch to domestic chips, which will stimulate the development of domestic AI chips, and eventually push the Chinese market away from US exporters, said Xiang.

Since the series of cognitive battles waged by the US have extended to the chip field, Fu noted that it is inevitable for politicians and the media establishment to cooperate with government sanctions in order to safeguard US interests against the current backdrop of China-US technological competition.

"However, this extreme pressure measure has not achieved the desired effect," Fu said.

Observers pointed out that although the US government's suppression of China's semiconductor industry will continue, US companies still value the Chinese market. Only through win-win cooperation in technology can confidence be injected into global development, they said.

China's economy starts off 2024 on strong footing, with an array of key indicators in the first two months beating market expectation by a wide margin, fueled by a spending spree in the Spring Festival holidays, ramped-up efforts in building new quality productive forces and the effects of macro policies implementation. Observers said the upbeat data offer an encouraging sign that the world's second-largest economy is not only consolidating the recovery momentum but also picking up pace.

The industrial output grew 7 percent year-on-year in the first two months, according to data released by the National Bureau of Statistics (NBS) on Monday, well above the 5 percent forecast from analysts polled by Reuters. It is also the fastest since March 2023.

The strong start in 2024, which presages a raft of bright spots ranging from high-tech to consumption of this year's growth path, also rebuts squarely recent skepticism and badmouths on Chinese economy hyped by certain Western media. It projects great confidence in China's economic trajectory toward a growth rate of around 5 percent in 2024, a goal set by this year's Government Work Report that Chinese officials believe - albeit faced with external and internal headwinds - will come to fruition "with earnest endeavors."

In January-February period, retail sales expanded 5.5 percent from the same period last year, versus a Reuters forecast of 5.2 percent, while fixed-asset investment also gained 4.2 percent in year-on-year terms, surpassing market estimates of 3.2 percent.

"With the macro policies taking effect, China's national economy has continued to recover and turn for the better in the first two months," NBS spokesperson Liu Aihua said at a press briefing of the State Council Information Office on Monday.

Recovery momentum

"The positive macro-economic indicators reflect that the country's GDP growth rate in the first quarter of this year will be higher than 5 percent, and that the economy is bottoming out after facing constant growth pressure seen in the past 10 years or so," Cao Heping, an economist at Peking University, told the Global Times on Monday.

For the first time in a number of consecutive months, the overall gauges on industrial, service and investment all topped the forecasts and displayed a considerable level of gains. And those headline indexes point to a strengthening recovery momentum that is buoyed by restorative growth and, more importantly, multiple new positive factors beyond, according to analysts.

For example, the 5.5-percent jump in the retail sales in the first two months, which though seem to be a moderate number taking account of last year's high base effect, shed light on the indigenous vigor and potential of China's massive consumer market, particularly in entertainment, tourism, cultural, sports and vehicle categories.

During the eight-day Spring Festival holidays in February, nationwide domestic tourism reached 474 million trips, an increase of 19 percent compared with pre-COVID level in 2019, while total expenditure amounted to 632.7 billion yuan, up 7.7 percent from the same holiday period in 2019.

It is forecasted the spending boost will prevail throughout the year, as more stimulus policies take effect and the "pandemic-scarring effect" continues to diminish. China last week unveiled a plan to promote large-scale renewal of equipment and the trading-in of consumer goods, opening up a market worth trillions of yuan and further giving consumption a leg up.

Tian Yun, a veteran economist based in Beijing, told the Global Times on Monday the economic recovery has also shown signs of tilting toward a more "even and balance" mode at the beginning of the year, especially in the demand side, whose recovery - though still lags behind the supply side - has been in a quick catch-up.

Fixed-asset investment, which grew 4.2-percent in the first two months, has "bottomed out" despite a drag by property sector, according to Tian, while ascribing the turnaround partly to the issuance of additional 1-trillion-yuan special treasury bonds in the fourth quarter.

In January-February period, investment in high-tech industries rose 9.4 percent year-on-year, a drastic rise that aligns with this year's economic blueprint laid out during the two sessions, which put the development of new quality productive forces as a core mission.

To reinforce and fast track the recovery in the demand side, Tian suggested that Chinese policymakers to "frontload" part of special-purpose bonds in the first half of 2024.

The Government Work Report stated that China plans to issue ultra-long special treasury bonds starting this year and over each of the next several years. One trillion yuan ($139 billion) of such bonds will be issued in 2024.

In 2023, fixed-asset investment staged a growth of 3 percent, NBS data showed.

In terms of supply, Liu Aihua said at the press briefing that industrial production will continue to play a ballast role in the national economy. She highlighted new drives from China's elevating innovation capacity amid manufacturing upgrade and transformation, in addition to traditional edges such as a complete industrial chain as well as the sheer size of the market.

Confidence behind the target

Following the set-up of an annual GDP growth target in early March, Chinese doomsayers have been gone to great lengths to raise doubts on the likelihood of the country to achieve a 5-percent goal. So the highly-anticipated economic data at the start of the year also timely draws out an objective and comprehensive picture on China's economic course, proving that the country is running on abundant engines - which certain Western media outlets ignore, that arguably outweigh unfavorable conditions, analysts said.

While acknowledging a bunch of downward pressures including "complex, severe and uncertain external environment and insufficient domestic effective demand," Liu stressed that China has conditions and enough support to hit the around 5-percent GDP growth target, and will realize the goal "through earnest endeavors."

Liu said Chinese authorities attach great importance to the challenges that could pose barriers to development. They also stand with great confidence and maintain strategic focus to cope with difficulties, promote sustained economic recovery, and translate the expected economic development goals into reality.

Han Baojiang, a professor at Party School of the Central Committee of the Communist Party of China, told the Global Times that Chinese policymakers are sober and they have articulated clear approach to economic development. "As long as we improve our economy, enhance people's livelihoods, and ensure employment, it is probably the most effective way to deal with all challenges."

Cao also voiced full confidence that the country will realize this year's GDP growth target of around 5 percent, though he said more effort is needed to focus on high-quality development.

To shield against potential headwinds, Cao suggested that authorities should continue to promote the transition in overall economic structure, focus on developing new quality productive forces, like new industries to be propelled by artificial intelligence.

Analysts warned against the property downturn, which they said is likely to persist for some time this year. In the first two months, China's property investment dived 9 percent year-on-year, NBS data showed.

Also, the increasingly volatile external environment calls for Chinese policymakers to reach more into the toolbox to stabilize and shore up internal demand, according to Tian. Liu said the country's solid economic fundamentals, the accumulation of many positive factors and the government's stimulus measures will continue to propel the economy to rebound and improve.

Tian predicted that China will continue making an "immense" 30 percent contribution to the world economy on condition that the 5-percent GDP growth goal is achieved, making it the second-largest only after the US.

China's integrated circuits (IC) or semiconductor chips export surged by nearly 30 percent in the first two months of 2024 amid the country's efforts to climb up the global technological ladder, despite mounting assaults by the US and its allies to slow down China's technology rise. 

IC exports reached 160.71 billion yuan ($22.33 billion) during the first two months of 2024, with an annual increase of 28.6 percent, data from the General Administration of Customs showed on Thursday. 

IC exports were among a number of high-tech products that have experienced robust growth during the January-February period. 

Beside IC, the exports of automatic data processing equipment increased by 7.3 percent year-on-year to reach 195.45 billion yuan and auto exports soared by 15.8 percent from the same period last year to reach 111.89 billion yuan. 

The robust growth of high-tech products reflect that China's efforts in transforming and upgrading its industries is paying off , and the tech suppression by a number of Western countries have largely failed and have actually boosted China's tech competitiveness as the country put more efforts in achieving self-sufficiency in high-tech products such as chips, analysts said. 

China's chip self-sufficiency rate may increase to 30-35 percent as many domestic chipmakers have expanded manufacturing since the US launched its tech war against China several years ago, said Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance.

Zheng Shanjie, head of the National Development and Reform Commission, the country's top economic planner, said at a press conference held during the ongoing two sessions that China's economy was off to a good start in the first quarter this year, with preliminary economic indicators such as electricity use, exports, and bank loans pointing to a strong recovery of the economy.

Chinese investment in Thailand is set to remain at a high level, reflecting a host of positive factors, after China became Thailand's largest foreign investor in 2023, Chinese and Thai analysts said on Wednesday.

Since December, at least 14 A-share listed companies have announced that they are setting up branches, building new plants, expanding existing facilities or increasing their capital in Thailand, amid an accelerated inflows of Chinese investment into Thailand, according to media reports.

ZYNP Corp, a combustion engine component maker from Central China's Henan Province, said in a stock filing on Wednesday that it is investing 210 million yuan ($29.56 million) to build a production base in Thailand.

Circuit Fabology Microelectronics Equipment Co, a printed circuit board (PCB) company based in East China's Anhui Province, announced on Wednesday that it is investing 100 million yuan in Thailand to set up a branch, buy land and build a plant.

Xu Genluo, vice president of Thailand-based Amata Corp, told the Global Times on Wednesday that the Chinese business community demonstrated an unprecedented passion to invest in Thailand last year and groups after groups of business delegations visited his industrial park.

Chinese and Thai analysts told the Global Times that rising Chinese investment is being driven by the new-energy vehicle (NEV) and electronics industries, with incentives by the Thai government. The world economic landscape, facing anti-globalization headwinds, has helped push this trend.

As the two sides work toward a China-Thailand Community with a Shared Future for Enhanced Stability, Prosperity and Sustainability, along with continued and accelerated growth in China-ASEAN trade and investment, Chinese companies' investment in Thailand will continue to surge, they predicted.

Lei Xiaohua, an ASEAN expert at the Guangxi Academy of Social Sciences in South China's Guangxi Zhuang Autonomous Region, told the Global Times on Wednesday that the Thai government has made economic development its top goal and regards attracting investment from China as one of the most important tools for economic development.

Chinese investors are also being attracted by Thailand's relatively complete supply chains and low-cost advantages, and the benefits and convenience brought by the Regional Comprehensive Economic Partnership trade pact that took effect on January 1, 2022, Lei said.

In a move that will boost people-to-people exchanges and commercial ties, Thai Prime Minister Srettha Thavisin announced on Tuesday that Thailand and China will permanently exempt each other's citizens from visa requirements, starting from March, China Media Group reported.

In response, Chinese Foreign Ministry spokesperson Wang Wenbin said that mutual visa exemptions serve the fundamental interests of both peoples, and the government departments responsible for the matter are in close communication on the specifics.

Boosted by the news, searches for the keyword "Bangkok" on Chinese travel platform Mafengwo surged by 200 percent as of Tuesday noon.

Huang Bin, head of the Chinese Department at the Bangkok-based Kasikorn Research Center, told the Global Times on Wednesday that almost all Chinese NEV brands invested in Thailand in 2023 due to incentives offered by the Thai government. Policies such as the EV3.5 program offer subsidies for the purchase of NEVs and aim to promote Thailand as the regional hub for these vehicles. For foreign investors, support policies include zero tariffs for imported used machine tools.

A reshaping of the global semiconductor supply chain also brought a large number of electronics firms, PCB companies in particular, to invest in Thailand, Huang said.

Huang predicted that the mutual visa exemption policy will boost bilateral trade and investment, though in a gradual fashion.

As China became Thailand's largest source of investment last year, the trend is expected to be maintained in 2024, the expert said.

China emerged as the largest source of foreign direct investment (FDI) applications, contributing 24 percent of FDI by value, with total investment pledges of 97.4 billion baht ($2.84 billion) for 264 projects in the first nine months of 2023, according to The Thailand Board of Investment.

In 2024, Thailand, Vietnam and Indonesia will be the highlight for Chinese overseas direct investment, Lei said.

China is set to promote the charging of new-energy vehicles (NEVs) during off-peak power usage by strengthening the interaction between NEVs and the power grids, with a relevant technical standard system established by 2025 and completed by 2030, several Chinese ministries jointly announced on Thursday.

By 2030, the interaction between China's NEVs and the power grid is expected to achieve large-scale application, facilitating the comprehensive promotion of intelligent and orderly NEV charging. The NEV-power grid interaction involves energy and information exchange through charging and discharging devices, enabling NEVs to participate in scenarios like virtual power plants.

According to an implementation suggestion released by four Chinese ministries, connecting NEVs to the power supply network can effectively leverage the flexible adjustment ability of vehicle power batteries as mobile energy storage.

Analysts highlight the significance of this suggestion, supporting the large-scale development of the NEV industry, the construction of new energy systems, and new power systems.

The suggestion sets a target that, by 2025, more than 80 percent of NEV power charged with private charging piles should be during off-peak power usage, with over 60 percent of NEV power charged in the off-peak period for the entire society in pilot cities.

Large-scale pilot demonstrations of NEV-power grid interaction are planned in regions such as the Yangtze River Delta, Pearl River Delta, Beijing-Tianjin-Hebei-Shandong region, Sichuan-Chongqing region, and other areas with favorable environments. Ministries aim to build more than five demonstration cities and over 50 two-way charging and discharging demonstration projects by the end of 2025.

In addition to the goal of charging NEVs during off-peak periods, the suggestion outlines six major tasks, including technological breakthroughs to extend battery lifetime and improvements in the market mechanism of electricity prices.

Furthermore, the suggestion encourages power suppliers to engage in the construction and servicing of charging facilities in residential areas. Power suppliers are also urged to build terminals integrating solar power generation, storage, and charging facilities based on local conditions, promoting the integrated development of transportation and energy generation.

As a cold wave swept across northern China, the Chinese capital welcomed its first snow of the winter on Sunday evening. Traffic in Beijing has also been affected by the snowfall, with heavy congestion during the morning rush hour on Monday.

Following the snowfall, Beijing was covered in a silver-white coat, presenting picturesque scenes at Beihai Park, the watchtowers and the Shenwu Gate of the Forbidden City. The snow covered the buildings of the Forbidden City, making the red walls and golden tiles appear more vibrant, creating a striking contrast with the pristine white snow, resulting in a beautiful and magnificent sight. Coincidentally, the Forbidden City is closed on Mondays, presenting a serene and peaceful atmosphere after the closure.

Different from the Forbidden City, the Universal Studios theme park is bustling as usual.  Many visitors wearing wizard robes headed straight to the Harry Potter's Wizarding World area, checking in at the silver-clad Hogsmeade Village, as if they have "traveled" into the classic snow scenes from the movies.

Netizens were amazed by the snowy scenes and expressed optimism for a prosperous year with auspicious snowfall. Many netizens from the southern regions expressed their envy, saying, "Beijing has already seen the first snow, while in Shenzhen, Guangdong Province, we still need to use electric fans. Southerners who have never seen snow are eager to personally experience it!"

Also enjoying the first snow was the star giant panda Meng Lan, "the 3rd Prince of Xizhimen," who once went viral for "breaking through" the enclosure at the Beijing Zoo. On the snowy day, Meng Lan rolled and happily frolicked in powedery snow. Visitors couldn't help but chuckle at the adorable sight.

From 7 pm on Sunday to 6 am on Monday, the average snowfall in Beijing was 5.1 millimeters, with the urban area averaging 5.8 millimeters. The highest snowfall occurred in Pupuwa, Fangshan district reaching 9.8 millimeters. According to Beijing Public Transport Group, as of 6 am, a total of 172 bus routes had been adjusted due to the snowy weather, including 157 routes that had been suspended, nine routes with adjusted sections, and six routes with detours and skipped stops.

The Beijing Capital International Airport plans to operate 1,100 flights and transport approximately 150,000 passengers on Monday. As of 7 am, 84 flights had been executed and 59 flights had been canceled. At 6 am, the airport initiated targeted de-icing operations, and a total of 22 flights had been de-iced. The overall operation of Beijing Capital International Airport remains normal.

Affected by a strong cold air mass, the meteorological department in East China's Shandong Province issued a blue warning for cold wave and a yellow warning for road icing on Saturday, and continued to issue a yellow warning for strong winds at sea on Sunday. Under the influence of the cold wave, there was also moderate to heavy snow and local blizzards in the northwest and central regions of Shandong. In addition, the city of Yulin in Northwest China's Shaanxi Province experienced significant rain and snow and a drop in temperatures on Sunday. Several local meteorological monitoring stations recorded snowfall at the level of heavy snow, and the average temperature dropped by 6 C to 8 C.

In Zhengzhou and Xinxiang, Central China's Henan Province, primary and secondary schools, as well as kindergartens, had half-day off on Monday.

On Sunday, a significant drop in temperatures occurred across most parts of Northeast China's Heilongjiang Province, with the lowest temperatures expected to reach -25 C to -30 C in some areas from December 10 to December 15. To cope with the cold weather, various measures had been taken to strengthen water and heating supply and other livelihood guarantees. In Fujin city, the local heating company has increased the frequency of inspections on heating equipment such as pipelines and valves to ensure the quality of heating.

To ensure the safety of passengers, the railway departments had suspended 112 passenger trains heading to Beijing, Xiamen, Chengdu, Taiyuan, among other routes, with some trains experiencing delays.

Researchers from the Institute of Process Engineering (IPE) of the Chinese Academy of Sciences have proposed a new "nano-micro composite" delivery concept for vaccines and developed a single-dose, dry-powder, inhalable vaccine platform. The vaccine made in the laboratory based on the technology is effective in blocking respiratory viral infection and transmission in animal test, showing great promise for combating future emerging and epidemic infectious diseases. This study was published in Nature on Wednesday. 

In recent years, researchers have made significant progress in developing vaccines for infectious respiratory diseases. However, most of these vaccines are administered through intramuscular injection, which primarily induces a humoral immune response and relies on blood antibodies to neutralize the virus. This approach fails to trigger a mucosal immune response and establish a robust immune barrier in the respiratory tract, according to a release from the research group.

The current liquid form of vaccines requires to be stored in strict low-temperature, and the two- or three-dose vaccination schedule also impacts the overall vaccination rate.

In confronting these problems, professor Wei Wei and professor Ma Guanghui from the State Key Laboratory of Biochemical Engineering at IPE, in cross-disciplinary collaboration with professor Wang Hengliang and professor Zhu Li from the State Key Laboratory of Pathogen and Biosecurity, have developed a new vaccine platform.

This platform combines biodegradable microspheres with protein nanoparticles. The surface of these nanoparticles can simultaneously display multiple antigens, thus inducing a broad-spectrum immune response and expanding the range of vaccine protection. The platform also allows for the quick and convenient development of other respiratory virus vaccines due to the flexibility of antigen presentation.

The platform's unique nano-micro composite structure enables an efficient immune response in the lungs by facilitating high-performance delivery. Once antigen-nanoparticles are released, they can be efficiently taken up by antigen-presenting cells. 

Moreover, this dry powder vaccine significantly reduces storage and transportation costs, making it suitable for areas with limited refrigeration facilities, thus improving immunization rates.

The sustained release of antigens in the vaccine induces long-lasting humoral, cellular, and mucosal immunity with just a single inhalation

In cooperation with professor He Zhanlong of the Institute of Medical Biology of the Chinese Academy of Medical Sciences, the researchers developed a model of airborne protection, close contact protection, and airborne transmission blocking, which demonstrated that an inhaled vaccine is highly effective in preventing the virus infection and transmission.

"The components of this nano-micro system used natural proteins and approved polymer materials, and the effectiveness and safety of the vaccine have been systematically studied in non-human primates, indicating its great potential for clinical translation," professor Wei said.