China has implemented a special guarantee plan to support scientific and technological (sci-tech) innovation, under which a national fund will increase its risk-sharing and compensation for small tech firms to support their innovation endeavors, an official with the Ministry of Finance (MOF) said on Tuesday.
The move is part of a broader effort by China to achieve sci-tech self-reliance, as the US and some other Western countries have been stepping up a crackdown campaign to stop China's technological rise.
The plan aims to further leverage the role of the National Financing Guarantee Fund, increase risk-sharing and compensation for small and medium-sized enterprises (SMEs) in sci-tech innovation, and offer strong support for achieving high-level sci-tech self-reliance, accelerating the formation of new quality productive forces, and promoting high-quality economic development, an MOF official said in a post online.
It comes after the MOF, along with several other Chinese government departments, released a notice on July 24 regarding the establishment of a special guarantee plan to support sci-tech innovation.
Among the key points of the plan, the risk-sharing ration of the National Financing Guarantee Fund has been increased from 20 percent to a maximum of 40 percent. Meanwhile, the risk-sharing ratio of provincial-level financing guarantee institutions has been set at no less than 20 percent, according to the notice.
Also, the upper limit of the amount of financing can be guaranteed for a single SME for sci-tech innovation has been increased from 10 million yuan ($1.4 million) to 30 million yuan, the notice said.
China previously established the National Financing Guarantee Fund in 2018 to tackle financing challenges faced by SMEs and businesses related to agriculture.
Since then, the fund's re-guarantee business has accumulated a total scale of 4.73 trillion yuan, serving approximately 4.2 million operating entities and more than 40 million employees. "It has played a positive role in meeting the financing needs of inclusive fields, assisting the development and growth of small and micro enterprises, and promoting the continued recovery of the national economy," the MOF official said on Tuesday.
In addition, in order to implement the special guarantee plan for sci-tech innovation and achieve concrete results, "we will strengthen the coordination of fiscal, monetary, and scientific and technological policies to form policy synergy," the official said.
The move comes as China has been stepping up efforts to bolster sci-tech innovation, as the US and some of its allies have waged a tech crackdown against China. Achieving sci-tech self-reliance has become a top priority, according to China's recent top policy meetings.
A meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee on July 30, which focused on the economic work for the second half of 2024, stressed the need to achieve greater self-reliance and strength in science and technology and to strive for breakthroughs in core technologies in key fields.
The communique released following the third plenary session of the 20th Central Committee of the CPC also listed education, science and technology among various factors that will help boost the overall performance of China's innovation system.
The trade war, initiated by the US against China in 2018 and intensified in the following years, has placed unprecedented external pressure on China's economy. However, this pressure has catalyzed China's economic transformation and market diversification efforts.
Beijing's strategic pivot to expand external markets and extend its supply chains has rapidly reduced its overreliance on the US market. This adjustment has enhanced China's economic resilience and positioned it more favorably within the global financial landscape.
As the US economy shows signs of slowing and the specter of recession looms large, China's economy - despite its challenges - displays remarkable stability. This contrast underscores the effectiveness of China's recent economic adjustments and its increased adaptability.
The US Department of Labor on Thursday released data showing that initial claims for unemployment benefits rose to 249,000 the week before, topping analyst forecasts and reaching the highest level since August of 2023. New purchasing managers data also showed that manufacturers are weakening as they grapple with higher interest rates. US stocks dived immediately as investors fretted over signs of US economic slowdown. The S&P 500 tumbled 76 points, or 1.3 percent, while the Dow Jones Industrial Average tumbled roughly 1.2 percent. The Nasdaq Composite was down even more sharply, sliding 2.3 percent.
The cyclical nature of the US economy raises critical questions: Will this downturn arrive sooner and hit harder than previous downturns?
The US strategy of decoupling from China and reshoring industries was conceived during an economic upswing, along with pandemic-era stimulus measures. As the positive effects of these policies wane, the US economic slowdown is beginning to reverberate globally.
As the world's largest consumer market, US economic fluctuations significantly impact emerging economies. The recent US push for decoupling from China has left many emerging economies more dependent on US exports, making them vulnerable to declining US demand.
Manufacturing exports from countries like Vietnam, Mexico, Bangladesh, the Philippines and India may face shrinking external demand. These countries may need help in maintaining stable economic growth and more resources for industrial upgrading and technological innovation.
Compared to China, these emerging markets often need more foundation for long-term social stability. They may face more significant social tensions and political risks, potentially impacting economic development, labor force improvement and sustained foreign investment.
A US economic downturn could significantly reduce global investors' risk appetite, leading to capital flight from emerging markets. This could exacerbate economic difficulties in these countries, potentially sparking a chain reaction of currency volatility and rising debt risks.
Domestically, the US faces tightening job markets and growing social tensions. Rising unemployment and income inequality may become the primary focus for the US government, potentially diverting attention and resources from global supply chain restructuring efforts.
Economic hardship often breeds protectionism. Based on past trade experiences, we may see more trade barriers, subsidy policies and localization requirements, potentially hindering normal trade relations between emerging markets and the US.
Should the US economic downturn evolve into a global crisis akin to 2008 financial crisis, these emerging markets may need more China's financial resilience and policy flexibility to weather the economic storm effectively as they could face severe economic crises, social unrest and political instability.
Given its economic challenges, Washington's political will and financial resources to continue pushing for decoupling from China remain uncertain. While unlikely to abandon its China strategy entirely, the US may be forced to reassess its global approach, potentially softening its stance on implementation.
In this shifting landscape, China's economic adjustments and export diversification strategy appear increasingly prescient, potentially offering a buffer against the impending global economic turbulence.
Editor's Note: This year marks the fifth anniversary of the unveiling of the Guangdong-Hong Kong-Macao Greater Bay Area Development Plan. The Chinese government unveiled its blueprint to turn the Greater Bay Area (GBA) into a role model of high-quality development, an international first-class bay area and a world-class city cluster. The GBA is well on its way to shaping the future of high-quality development and driving sustainable economic growth. As one of the most economically open and vibrant areas in China, the region is at the forefront of China's reform and opening-up and technological innovation. It has developed from the world's factory into a world-class financial and innovation hub. The Global Times looks at the region's progress in meeting targets set for it, how different cities are vying to attract foreign enterprises, investing in research and development, achieving sustainable development and more.
Located along China's southern coast, the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) is emerging as a leading global technological hub. The GBA has forged its own path of innovation, with a clear focus on cutting-edge technologies and key development areas such as the low-altitude economy, artificial intelligence (AI), humanoid robots, autonomous driving and quantum computing, to name a few.
In recent interviews with the Global Times, scientists, experts and industry players in the region hailed the GBA as "a hotbed of innovation" that will compete with major global tech hubs like New York and Silicon Valley in the US, as well as Tokyo-Yokohama in Japan.
The GBA, with a population of over 80 million, possesses all the elements required to become an international innovation and technology hub. It is known for its youthful population, high level of education, abundant talent pool, and significant capital input. With top-notch infrastructure , it boasts unparalleled global connectivity and access to professional services, they said.
By combining the strengths of each city to facilitate trade and growth, the GBA has the potential to be a powerhouse of innovation and entrepreneurship that will be comparable to or even surpass leading bay areas across the globe, they noted.
New quality productive forces
When the Global Times reporters stand in front of an electric vertical takeoff and landing (eVTOL) aircraft closely, the first impression is that it is a modern helicopter. Except for a large screen showing information about the aircraft and a map, there seems to be no additional instruments, a simple sign that shows its simplicity and maneuverability.
Guangzhou-based EHang Holdings, a Chinese urban air mobility technology platform company, obtained a production certificate for its EH216-S eVTOL aircraft from the Civil Aviation Administration of China, a world first, in April.
Although the eVTOL has not yet entered the commercial operation stage, it has already received many overseas orders from Saudi Arabia, Indonesia and Malaysia, He Tianxing, vice president of EHang Holdings, told the Global Times.
The key direction of the industrialization of the low-attitude economy is manned travel and logistics transportation and the cities of the GBA have their potential, He said.
The low-altitude economy, which is key in nurturing new quality productive forces and a new growth engine, was written into the Government Work Report for the first time during this year's "two sessions."
He said that developing a low-altitude economy is the consensus of many Hong Kong politicians, with some of them saying that the city should make good use of the industrial advantages of the GBA, learn from the experience of relevant cities and accelerate the development of the low-altitude economy.
The GBA is well on its way to shaping the future of technology and driving sustainable economic growth, with Shenzhen's Hetao serving as a prime example of the GBA's continuous innovation efforts.
Shenzhen-based startup Corerain Technologies Co, founded in 2016, is at the forefront of AI chip technology. The company claimed that it launched the world's first commercial AI chip based on streaming architecture, called Custom Artificial Intelligence Streaming Architecture, in 2020, and the chip has been used in the markets of smart cities and intelligent manufacturing.
The US' further tightened export restrictions on AI-related products to China has pushed domestic companies to seek alternative technological pathways, presenting both challenges and opportunities that have driven innovation in the tech sector, Wang Shaojun, COO of Corerain Technologies, told the Global Times.
Over the past five years, a batch of world-class major scientific and technological infrastructure and high-end scientific research resource clusters have been rapidly taking shape in the GBA.
At present, the GBA in China leads the world in patent capabilities among the four major bay areas, establishing itself as a global technology leader in electronics, information technology, software, and pharmaceuticals, and serving as a key hub for global technological innovation, the Xinhua News Agency reported.
The Global Innovation Index 2023 published by the World Intellectual Property Organization has ranked the Shenzhen-Hong Kong-Guangzhou science and technology cluster second globally, a ranking it has achieved for four consecutive years.
Attracting talent
Interviewees from various industries and the experts also highlighted the importance of talent, noting that with supportive national and local policies, an improved research environment, and comprehensive services for talent, the GBA is becoming a preferred destination for professionals and researchers.
The GBA is uniquely positioned to thrive in the new era of technological revolution and industrial transformation due to its diverse scientific and technological innovation resources and tech talent pool from Chinese mainland cities, as well as Hong Kong, and Macao, Qin Ling, director of the Chinese University Hong Kong-Shenzhen Innovation and Technology Research Institute in Futian, Shenzhen, told the Global Times.
This convergence of talent and expertise creates a fertile environment for cutting-edge technological innovation to flourish, Qin added.
Qin's research institute, focused on research in a variety of fields, including robotics, AI and medical services, is located in the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (HTCZ).
The HTCZ, situated on the border between Shenzhen and Hong Kong, is a pioneering zone facilitating technological collaboration between the two cities and acts as a hub for the transformation of technological achievements within the GBA.
Liu Nianqiu, vice-president of the Hetao-based DeepRoute.ai, a company that focuses on smart driving, said that the GBA offers unique advantages for the development and application of AI in China. The area's complete industrial chain, diverse application scenarios, and strategic geographical location have made it a dream location for the company.
Having spent two years working in the Silicon Valley in the US after graduating from a university in Southwest China's Sichuan Province, Liu decided to pick the GBA as his next stop.
"I think Shenzhen is a more vibrant and younger city with more opportunities, where I can display my talent. The Chinese autonomous driving market is huge," Liu said.
In July 2021, DeepRoute.ai became the first company in China to operate robotaxi services in the central business districts of Shenzhen. That year, the company released a cost-effective, mass-production-ready solution, priced at $3,000, that meets automotive-grade standards, making it the first such solution in the industry.
At present, DeepRoute.ai has accumulated over 15 million kilometers of road testing in China with zero accidents, according to the company.
"We look forward to providing low-cost and high-performance intelligent driving solutions for the automotive industry and accelerating the mass production of high-level intelligent driving," Liu said.
Hong Kong's young talent and innovation ecosystem also play a crucial role in the story.
The advancement of technological innovation provides these talent with limitless opportunities. They're unique in that they're part of China, while maintaining an international perspective. Their innovative spirit and global vision will breathe new life into the GBA's technological development, Guo Yike, provost of the Hong Kong University of Science and Technology, told the Global Times.
Hong Kong's strengths in talent, international connections, and innovation ecosystem are key factors driving technological advancement and industrial development in the GBA and beyond, Guo said, adding that the city's competitive edge in AI is particularly evident in its ability to attract top talent and foster a globalized environment conducive to innovation.
The GBA presents unique and valuable development opportunities, Qin said. "By leveraging the strengths of top universities in Hong Kong in innovation and research exploration, and combining them with the Chinese mainland's expertise in transforming and commercializing research results, we can achieve significant advancements in fields such as biomedical engineering," he added.
The interviewees said that the GBA provides comprehensive and full-industrial chain services to talent, and it can be said that the GBA has competitiveness that is "comparable" to world-class bay areas.
Synergy impact builds world-class GBA
Over the past five years, major breakthroughs have been made in the GBA. Official data shows that the total economic output of the GBA exceeded 14 trillion yuan ($1.97 trillion) in 2023, up from 10.8 trillion yuan in 2018, achieving one ninth of China's total output with less than 0.6 percent of the national territorial area.
Since Chinese authorities unveiled the outline development plan for the GBA, the annual R&D investment intensity into the region has exceeded the 2.8 percent threshold of innovative countries, and has increased year after year.
As the GBA continues to break new ground in technology and innovation, its influence is expected to ripple across the globe, making it a key player in shaping the future of the tech industry. With its strategic vision, collaborative spirit, and relentless pursuit of excellence, the GBA is poised to become the world's next great innovation engine, industry players said.
Yu Dapeng, a Shenzhen-based quantum scientist, told the Global Times that Shenzhen, a city that has rapidly evolved from a fishing village into a demonstration area, is now a powerhouse in quantum computing and other advanced technology. The city's remarkable growth and innovation are a testament to its unwavering drive and potential.
Meanwhile, the integration of Hong Kong and Macao into the GBA has strengthened the region's position as a global financial and innovation hub, attracting international businesses and talent and offering a unique combination of expertise from Hong Kong's financial sector and the innovation capabilities of South China's Guangdong Province, Lin Hanming, a professor at the Chinese University of Hong Kong, told the Global Times. The recently released communique from the Third Plenary Session of the 20th Communist Party of China Central Committee laid out an unequivocal commitment to comprehensively deepening reform to advance Chinese modernization.
On the science and tech front, the communique includes a call to cultivate national "innovative capabilities" and encourage "first-rate foreign universities of science and engineering to develop partner schools and programs in China."
China will strive for revolutionary breakthroughs in deepening scientific and technological structural reform and achieve greater self-reliance and strength in science and technology, it said.
Chinese President Xi Jinping has encouraged a model military company to strengthen training in real combat conditions and build itself into a highly capable unit with great courage to fight and firm determination to win.
Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, made the remarks in a reply letter to the officers and soldiers of the company ahead of the country's Army Day, which falls on Aug. 1.
East China's Fujian Province has recently included assisted reproductive technology (ART) services in its health insurance coverage. This move follows the lead of approximately 14 other provincial-level regions in China that have already incorporated ART services into their health insurance plans.
The development is expected to provide much-needed financial support to individuals and couples seeking fertility treatment.
According to an official from Fujian's medical insurance bureau, the current price of ART services treatment in Fujian Province will be adjusted and standardized. This include integrating the original 20 items into 12 ART service price items such as "ovum retrieval," and setting prices based on the projects in public hospitals in Fujian. Local medical insurance bureaus in each city are required to formulate project prices based on local conditions.
The bureau said that eight ART services, such as "ovum retrieval," and included two types of consumables can be charged separately as part of the scope of medical insurance payment.
Fujian's new policy will start from September 1 this year.
Earlier this month, East China's Anhui Province and North China's Hebei Province said they would reimburse medical bills for ART services starting August 1, meaning that a total of 14 provincial-level regions across the country now include ART procedures in their medical insurance reimbursement systems as of next month.
Since March, China has accelerated its efforts in including ART services into medical insurance schemes after the National Healthcare Security Administration proposed that eligible regions gradually include therapeutic assisted reproductive services in their medical insurance reimbursement.
So far, a dozen of provincial-level regions including municipalities of Beijing and Shanghai, provinces of Gansu, Zhejiang, Jiangxi, Jiangsu, Shandong, Jilin and Qinghai, as well as Inner Mongolia Autonomous Region, Xinjiang Uygur Autonomous Region and Guangxi Zhuang Autonomous Region have already included ART services into their medical insurance system.
The infertility rate among the Chinese population of childbearing age is currently estimated to be between 12 percent to 15 percent. Including assisted reproductive medical services into medical insurance reimbursement systems is a demonstration of the mutual aid support from the system to these people who desire children but have to rely human assisted techniques.
According to Jin Niu, a lecturer from the School of Public Finance and Administration, Tianjin University of Finance and Economics, including ART services into medical insurance can help reduce the cost of childbirth to some extent, allowing individuals planning to have children to have a better childbirth experience. It is one of the important factors for building a fertility-friendly society, yicai.com reported.
Statistics from the Guangxi Zhuang Autonomous Region Human Assisted Reproductive Technology Management Center show that outpatient visits at assisted reproductive institutions across the autonomous region reached 993,700 over the past six months since the ART services were included in the region's medical insurance reimbursement system over half a year ago, an increase of 14.74 percent year-on-year.
This July marks the third anniversary of the launch of the national carbon emissions trading market in China, which, according to the Chinese Ministry of Ecology and Environment on Monday, has made China the world's largest carbon market in terms of greenhouse gas coverage.
The national carbon emissions trading market in China, which started with the power generation industry, currently includes 2,257 key emissions units in the sector. This market covers approximately 5.1 billion tons of carbon dioxide emissions annually, said Pei Xiaofei, spokesperson of the Ministry of Ecology and Environment on Monday at a monthly press conference.
Pei said that the national carbon market is an important policy tool that uses market mechanisms to control greenhouse gas emissions and will achieve carbon peak and carbon neutrality goals. It consists of two parts: the mandatory carbon emissions trading market and the voluntary greenhouse gas emissions reduction trading market. These two markets operate independently yet complement each other through a quota clearance and offset mechanism.
He said that over the past three years, the national mandatory carbon emissions trading market has successfully completed two compliance cycles, achieved its expected construction goals and made significant progress.
A comprehensive institutional framework has been established. The State Council issued the "Interim Regulations on Administration of Carbon Emissions Trading," and the Ministry of Ecology and Environment released the "Carbon Emissions Trading Management Measures (Trial)" along with three management rules for carbon emissions registration, trading, and settlement.
An infrastructure support system known as "One Network, Two Institutions, Three Platforms" has been built, encompassing the national carbon market information network, national carbon emission registration and trading institutions, and the national carbon emissions registration, trading, and management platforms.
Moreover, the capacity for carbon emissions accounting and management has significantly improved through enhanced data quality supervision, optimized methods, advanced technologies and dynamic risk monitoring, leading to better corporate management and accounting capabilities.
The vitality of the carbon market has steadily increased. By the end of June 2024, the cumulative trading volume of the national carbon emissions trading market reached 465 million tons, with a transaction value of approximately 27 billion yuan ($3.7 billion).
The trading scale has gradually expanded, with the trading volume and value in the second compliance cycle increasing by 19 percent and 89 percent, respectively, compared to the first compliance cycle.
Furthermore, corporate participation in trading has significantly increased, with 82 percent of companies participating, up nearly 50 percent from the first compliance cycle. The overall carbon price has shown a steady upward trend, rising from 48 yuan per ton at the start to 91.6 yuan per ton ($12.6) as of the closing price on July 26, an increase of 90.8 percent.
Additionally, the national voluntary greenhouse gas emissions reduction trading market was officially launched in January 2024. Its institutional framework is now complete, and emissions reduction projects and voluntary reductions are about to enter the registration application window period, encouraging broader industry participation in carbon reduction efforts.
We are witnessing a change in the world order, in the framework of which several proxy wars have already broken out, such as the Russia-Ukraine war, which has been going on for more than two years. The transformation of the world order started a kind of bloc-formation in the world. While Eastern countries are still supporters of dialogue, the West does not want to hear about dialogue, responding with a policy of sanctions.
In contrast, the Hungarian government supports connectivity and dialogue and rejects bloc-formation and war. As a result, Viktor Orban, the Prime Minister of Hungary, announced the peace mission, in the framework of which he first negotiated with Ukraine, and then with the leader of Russia in the spirit of the Seneca philosophy - Audiatur et altera pars, i.e. let the other side be heard as well. After that, he held negotiations with the great powers, who could have an influence on achieving peace as soon as possible. So he visited Beijing and then Washington, where he consulted with the leaders of the US, Turkey and other countries as part of the NATO summit. This is because peace can only be achieved through dialogue.
Although Prime Minister Orban's peace mission serves a good purpose, the EU and its member states expressed their displeasure with the negotiations. In Brussels, it has been argued that the Hungarian Prime Minister, even though his country holds the rotating presidency of the Council of the European Union, cannot negotiate on behalf of the EU. However, the Hungarian Prime Minister did not give the impression that he was speaking for the whole of the EU, not least because the government has made it clear that Hungary does not agree with the position of the vast majority of EU countries on the war in Ukraine. The Hungarian position is that a ceasefire and peace negotiations are needed as soon as possible and that there is no solution to the war on the battlefield.
In contrast, the EU political mainstream believes that the war can only end with the victory of Ukraine, and Russia must be defeated and Kiev must be supported with money, arms and ammunition to achieve this. Orban's peace mission, and the Hungarian presidency in general, has broken no rules.
However, it is clear that Hungary has a different opinion on the resolution of the conflict. In the democratic EU, different opinions are not tolerated. We have seen this in the migrant and LGBTQ issues, and we are seeing it now. After the elections in the EU, the rotating president country's prime minister could not speak in the European Parliament - contrary to previous customs, and the EU has called for a boycott of the events organized by Hungary.
Will the EU soon stop talking not only to Russia but also to one of its member states because it has a different opinion on certain things?
The outgoing European Commission, according to the Hungarian position, is attacking the Hungarian government for essentially ideological and political reasons. It is using legal instruments at its disposal, and even actively supporting the creation of new mechanisms, with the overt aim of putting pressure on certain member states. For years, Hungary has not received most of the EU funds it is entitled to. Also, Ursula von der Leyen announced the launch of a new rule of law procedure just days after the 2022 parliamentary elections, which brought Orban's fourth two-thirds victory.
According to the Hungarian government, the European Commission should be a guardian of the treaties, acting as an honest broker, but instead, it is acting as a purely political body.
The sharp reaction of EU politics to Orban's peace mission raises serious questions about the agenda and interests of the institution and individual countries in relation to the war. Peace should be a universal goal, because every day of war further destroys Ukraine and kills people on both sides, and it is also extremely damaging to the EU economy. The EU's global political weight - alongside its competitiveness, the restoration of which is a priority of the Hungarian presidency - is being seriously eroded, and it cannot even have a meaningful influence on events in its own neighborhood. It should therefore be appreciated, not rejected, that Orban is using his good contacts and influence to promote peace and bring the parties concerned to the negotiating table.
Editor's Note:As the Chinese economy has faced challenges in recent years, some Western officials and media pundits have stepped up their smear campaign against China. They cherry-pick information and distort facts to hype their narratives such as "Peak China," but they always turn a blind eye to China's economic resilience and development potential. In order to set the record straight, the Global Times is launching a multimedia project, including in-depth articles, objective analysis and visual arts, to present a comprehensive and true picture of the economy. This is the 11th installation of the series.
Since the start of the construction of the Three Gorges Dam, China's hydropower ecosystem has overcome difficulties and realized the independent design and manufacturing of hydropower equipment and the localization of important materials.
The Global Times recently made a visit to the Gezhouba Dam and the Three Gorges Dam to discover how China's infrastructure construction, taking the building of hydropower stations as example, started from scratch to become a global leader, and how infrastructure construction becomes smarter, greener and more creative.
The Gezhouba Hydropower Station, located in Yichang, Central China's Hubei Province, was the first large-scale water control project on the main artery of the Yangtze River and was a milestone of China's hydropower generation. The first group of generator units was commissioned in 1981, with the hydropower station already being operational for more than 40 years safely.
In 2003, the first batch of electricity generator units of the Three Gorges Hydroelectric Power Station, commonly known as the Three Gorges Dam, entered service. The Three Gorges project, which started construction in 1994 based on experience from the construction of the Gezhouba station, remains as the world's largest hydroelectric power plant in terms of installed capacity.
Hard-won achievements
In the design and manufacture of the power station units for the Three Gorges Dam, domestic manufacturers have continuously promoted independent innovation and mastered the key and core technologies of the manufacture of the hydro-generator set, an industry insider told the Global Times.
"The construction of the Three Gorges Dam has laid the foundation for localization of hydropower station buildings in China," the insider said.
The six mega hydropower stations along the upper and middle reaches of the Yangtze River - The Three Gorges, Wudongde, Baihetan, Xiluodu, Xiangjiaba, and Gezhouba - form the world's largest clean energy corridor, which spans over 1,800 kilometers with a water level drop exceeding 900 meters.
The construction of the corridor has taken nearly half a century, and was completed in December 2022, when the Baihetan Hydropower Station, located in the upper reaches of the Yangtze River - the lower reaches of the Jinsha River - in Southwest China, became fully operational.
The corridor, an enormous project, has become the best in class globally for many aspects of its construction and operation, such as being the world's thinnest 300-meter-level ultra-high arch dam, the world's highest underground powerhouse, and the world's largest single unit of power generator in terms of capacity.
Domestically-driven innovation
After the completion of the Three Gorges Dam project, China started the development and construction of cascade hydropower stations in upper reaches of the Yangtze River.
Domestic enterprises for hydropower equipment design and manufacturing have continuously set new records in the field of major hydropower technical equipment.
On June 28, 2021, the first generation of hydro-generator units with a capacity of 1 million kilowatts at the Baihetan Hydropower Station successfully entered operation, achieving breakthroughs in leading the world's hydropower development.
Behind the improvement of unit capacity is the comprehensive research and development and application of new materials, new processes, new equipment and new technologies.
China's hydropower ecosystem has realized independent design, manufacturing, and localization of key raw materials. Some technologies have filled the gaps in related fields at home and abroad, meaning that transformation from "made in China" to "created in China" has been achieved, enabling China's hydropower equipment manufacturing remaining at world's leading position, industry insiders told the Global Times.
They also noted that the construction of the Three Gorges Dam represents the epitome of China's infrastructure building and the transformation in its manufacturing industry.
So far, a total of 110 hydroelectric generators are operational in the world's largest clean energy corridor. The total installed capacity of the six hydropower stations has already hit 71.695 million kilowatts, producing about 300 billion kilowatt-hours of clean electricity annually, which can meet the annual electricity demand for roughly 360 million people, the Global Times was told.
While the installed capacity of domestic power generation units is increasing, the construction of China's dams has also entered an intelligent era. Based on the Three Gorges Dam, Wudongde and Baihetan hydropower stations have further advanced the intelligent construction, providing a "Three Gorges model" for the digitalization and intelligence of the infrastructure construction industry.
Digitalized operation
Apart from smart construction, China's traditional energy industry has embarked on a digital transformation in operation and maintenance in recent years.
Despite its immensity, the operations of the Three Gorges Dam have been simple and easy, streamlined through a digitalization process. Technicians only need to use mobile phones or tablets to complete various tasks, including equipment maintenance management, operation scheduling management, safety and reliability monitoring, and document management.
"We use the water telemetry system, the decision-making system of comprehensive utilization of water resources and the data model to effectively release the comprehensive potential of cascade hydropower stations, such as flood control, navigation, water replenishment, ecology and power generation," an insider from a digital control center, which acts as the brain of the world's largest clean energy corridor, under the China Three Gorges Corporation (CTG), told the Global Times.
On the large screens at the control center, located in Yichang, the Global Times observed that the water and rain conditions in the Yangtze River basin and real-time production information of six cascade power stations in the Yangtze River main stream are accurately presented.
By April 2024, the industrial internet platform has been deployed in all six cascaded hydropower stations along the mainstem of the Yangtze River, the Global Times learned from CTG.
After the application of the industrial internet platform in the Yangtze River basin hydropower stations, the comprehensive utilization rate of water resources, the operation efficiency of the power stations, and the operation safety and reliability will be further improved, a vivid example of "5G+ Industrial Internet" enabling new industrialization, said China Yangtze Power Co (CYPC), a subsidiary of CTG and the constructor of the industrial internet platform.
CYPC has independently developed the industrial internet platform for the cascade hydropower stations to enable intelligent operation, maintenance, scheduling, decision-making, and other scenarios, the Global Times learned.
The collaborative operation and coordination of six cascade hydropower stations is a world-class challenge. It is necessary to rely on advanced technologies such as artificial intelligence and big data models to build an industrial internet platform, a director at a research center of CYPC, told the Global Times.
Robotaxis are getting more and more attention in the Chinese market, but some companies say that driverless cabs are hardly generating any revenue at this stage.
Dazhong Transportation (Group) Co, one of Shanghai's leading taxi companies, has seen its stock prices rise due to the growing interest in intelligent connected vehicles. However, on Monday, the company announeced that these vehicles are still in an experimental stage and are not generating any substantial revenue.
"The development prospect of robotaxi remains uncertain, and there will be no significant impact on the company's operations in the short term," the company said.
Jinjiang Online, another Shanghai-based taxi company, also addressed the concept of driverless robotaxis. The company is conducting pilot operations of robotaxis in designated areas of Shanghai, which are still experimental and generate minimal revenue. The outlook for robotaxis is uncertain, but will not influence the company's short-term development.
Driverless robotaxis are facing challenges in achieving significant profits over the short term because some regulatory rules have not been implemented, transportation experts said.
"Prior to mass comercialization, relavent government departments need to conduct regular assess on the impact of robotaxis, focusing on road traffic efficiency, industrial development and social and ethical implications," Zhang Li, a vice dean of the Law School at China University of Political Science and Law, told the Global Times on Tuesday.
According to Zhang, operators of robotaxis services must address liability and passenger rights in case of traffic accidents. Operators should buy carrier insurance and be liable for breaches of contract or torts, just like traditional taxi companies.
"When passengers use the app, they enter into a contract, and any accident that disrupts the services should hold the provider accountable," Zhang said.
"From an economic restructuring standpoint, AI is a critical field where China aims to lead. Autonomous driving, a key player and driver of smart industry upgrades, will eventually move from pilot testing to commercialization. However, this process should be gradual and not rushed," Wu Shuocheng, a veteran automobile industry analyst, told the Global Times on Tuesday.
