A US congressional delegation is on a five-day visit to the island of Taiwan, where they will reportedly meet regional leader Lai Ching-te and others. However, Chinese mainland experts believe that these US politicians, who may not hold much significance in Washington, are merely paying lip service by showing support for the secessionist Democratic Progressive Party (DPP) authorities.
Marilyn Strickland, a Democrat representing the state of Washington, reportedly leads the delegation that also includes her Democratic Party colleagues Julia Brownley of California, Jill Tokuda of Hawaii, and Jasmine Crockett of Texas.
Xin Qiang, director of the Taiwan Studies Center at Fudan University, told the Global Times on Monday that the US Congress has long been at the forefront of supporting "Taiwan independence" forces.
With the strategic competition between China and the US intensifying, there are hawkish political figures and forces in the US who advocate using Taiwan as a bargaining chip for the US to compete with and counter China, and in recent years, this faction has grown stronger, Xin noted, adding that those US politicians are trying to play the "Taiwan card" for personal gain, experts commented.
Some experts believe that Strickland and the other delegates, who are not well-known figures in Congress and have little policy influence, are using their Taiwan trip to enhance their political profiles, attract media attention, and showcase their ideological and anti-China stance.
The DPP authorities always warmly welcome these US politicians, often offering appearance fees and other benefits. Even if they are nobodies in the US, they can enjoy VIP treatment on the island, the experts said.
Experts stated that during their trip to Taiwan island, all they need to do is pay lip service to the authorities in the region, adding that their performances are not worth a significant reaction from the mainland.
Net international reserves of UAE banking sector rose by 8 percent or AED 91 billion in the first five months of the year to reach AED 1.236 trillion by end of last May from AED 1.145 trillion by the end of last year, according to the Monthly Statistical Bulletin - Banking & Monetary Statistics for May 2024, issued by the Central Bank of the UAE (CBUAE) on Monday.
Statistics showed that the CBUAE accounted for AED 763.8 billion of the net international reserves of the UAE banking sector by the end of last May, a growth of 13 percent compared with a balance of AED 673.42 billion by the end of 2023.
The net international reserves of banks operating in the UAE grew by 1 percent to AED 472.68 billion by the end of last May from AED 472.2 billion by the end of December 2023.
Multiple cities in China have implemented measures to promote energy conservation, such as suspending unnecessary landscape lighting, adjusting industrial production schedules to avoid peak periods, and encouraging the use of energy-efficient equipment, in response to the high demand for electricity during the summer months, especially in regions experiencing sweltering heat.
Since the start of August, Hangzhou, the capital of East China's Zhejiang Province, has experienced the third wave of high temperatures this year, leading to a record high electricity load. To ensure power supply, the city has suspended unnecessary landscape lighting and light shows from Monday to Friday, the city authorities said on Tuesday.
Along with Hangzhou, other cities such as Nanjing, East China's Jiangsu Province, and Hefei, East China's Anhui Province have also released proposals calling for energy conservation in the face of the recent high temperatures.
China's National Meteorological Center on Wednesday morning continued to issue an orange alert for high temperatures as multiple regions in the country continue to experience sweltering heat, with some parts of Anhui, Jiangsu, and Zhejiang provinces recording temperatures of above 40 C.
In the three-tier warning system for high temperatures, red represents the most severe warning, followed by orange and yellow on the lower scale.
Industrial enterprises are required to scientifically optimize production schedules and avoid production during peak times. They're encouraged to use energy-efficient products and equipment that comply with national standards, said the Nanjing authorities.
The authorities in Zhenjiang, Jiangsu have called for government agencies and public institutions to turn off office equipment when not in use, set air conditioning to no lower than 26 C, turn off lights and electronic devices when leaving a room, and use stairs instead of elevators for floors below the third floor.
During extremely hot weather, it is essential for everyone to join in to save electricity. "Moving forward, we may need to explore new strategies. China has been leading the way in energy transition by embracing new sources of energy like solar and wind power," Ma Jun, director of the Beijing-based Institute of Public and Environmental Affairs, told the Global Times on Wednesday.
Enterprises in China are encouraged to cooperate and implement measures to save electricity and shift peak electricity consumption. This is important as industrial electricity consumption is high in some developed areas. The local authorities need to ensure industrial electricity supply while enterprises should focus on energy conservation as well, said Ma.
Chinese cities have been accelerating green and low-carbon transformation. The Global Times learned from State Grid Shanghai Municipal Electric Power Co that the peak power generation output of renewable energy in Shanghai's power grid exceeded 3 million kilowatts for the first time on July 28, reaching a peak at 3.1 million kilowatts, marking a new breakthrough in the utilization of renewable energy in the city.
It is predicted that the annual total generation of wind and solar energy in Shanghai will exceed 5 billion kilowatt-hours, equivalent to saving 1.5 million tons of standard coal and reducing carbon dioxide emissions by 4 million tons, said the company.
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.
