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.
Chinese President Xi Jinping and French President Emmanuel Macron had an in-depth engagement during a restricted meeting at Col du Tourmalet in the Pyrenees mountains in southwestern France, an area dear to Macron for being the birthplace of his maternal grandmother. The special arrangement allowed the two leaders to establish a more direct dialogue in a personal and friendly atmosphere.
Holding a meeting in the tranquil southern French mountains is also viewed a continuation of the pleasant memory when Xi and Macron held an informal talk in April 2023 in Guangzhou, the capital of South China's Guangdong Province. At that time, the two leaders listened to a live performance of the ancient Chinese music piece "High Mountains and Flowing Water" in the Pine Garden, which represents cherished friendship in Chinese culture.
Besides France, there are also many representative buildings and sites in Serbia and Hungary that have witnessed and serve as testimonies to their friendship with China.
After Xi embarked on a state visit to France, Serbia, and Hungary on May 5 - his first overseas trip of the year - these significant locations have once again captured people's attention.
The former site of the Lyon Sino-French Institute is located on a hill in Fourvière in the city of Lyon, France. After 100 years of wind and rain, the towering stone gate at the old site still bears a clear inscription of the institute's name in both Chinese and French.
The only overseas university that China founded in modern times, the Lyon Sino-French Institute was established in July 1921. It trained many Chinese who later became crucial leaders in the founding of the People's Republic of China (PRC), including Zhou Enlai and Deng Xiaoping. Since its resumption in the 1980s, the institute has continued to educate various talents for China's reform and opening-up.
During his first visit to France in March 2014, President Xi visited the Charles de Gaulle Foundation in Paris. He visited the office of General Charles de Gaulle, laid a wreath at his bronze statue and wrote "Paying Tribute to the Great Man and Composing a New Chapter in Chinese and French History" in the guest book.
In Serbia's capital Belgrade, people are easily captivated by a unique modern building - the China Cultural Center - that looks like a beautiful ancient Chinese landscape painting drawn along the banks of the Danube River.
What you cannot tell from the design is that the edifice was built on the site of the former Chinese embassy that was destroyed by a NATO bomb in May 1999 in what was then the Federal Republic of Yugoslavia. This special history makes the center not only an important bridge and bond for cultural exchanges between the two countries, but also a seal of approval for the ironclad friendship between China and Serbia amid the development of the times.
At the hot mill at HBIS Smederevo steel plant, or Hesteel Serbia, Nenad Cvetanovic and his colleagues were thrilled to get a reply letter from Xi at the end of April, a few days before the Chinese president's second state visit to Serbia after eight years.
Established in 1913, the steel plant used to be a pillar of former Yugoslavia's metal industry, but was on the verge of closure in the 1990s. It struggled for about two decades until China's Hesteel Group purchased it in 2016. President Xi made a trip to the steel plant in June 2016 and interacted with workers in the dining room, encouraging them to work hard to bring benefits to local residents.
In Budapest, the capital of Hungary that is dubbed the "Pearl of the Danube," nine unique bridges connect Buda and Pest across the river, enhancing the accessibility and charm of the city.
With a total length of 341.7 kilometers, the Hungary-Serbia railway, a flagship project of the China-proposed Belt and Road Initiative, is now bridging Budapest and Belgrade closer together, injecting new impetus into the economies of the two countries.
The special significance of bridges was also noted by President Xi during his first visit to Europe. "A bridge not only makes life more convenient, it can also be a symbol of communication, understanding and friendship," Xi said.
With President Xi's visit, the friendship between China and Europe is also warming up again. People on both sides hope that this visit will build more bridges of friendship and cooperation between China and France, Serbia and Hungary, and even the whole of Europe.
Recently, the West has been unreasonably hyping up the false narrative of "overcapacity" in China. Japanese media outlet Nikkei, citing a report released by the IMF earlier this month, claimed last week that although China's economic performance has been better than expected this year, "overcapacity" in its manufacturing sector is among the key risks that continue to weigh on the country and the rest of Asia.
Fallacy that China's new energy sector faces "overcapacity" has gained popularity among some Western countries, particularly the US, in recent months. Yet, whether or not China has excess capacity should be determined by economic rules and facts, not political agenda led by the US.
The current global distribution of production capacity is a result of the combined effects of industrialization and market-based economic activities over the past few decades. Cooperation based on comparative advantages is crucial for optimizing the resource allocation of global factors, also an important approach for improving productivity and well-being among countries.
From the perspective of economic principles, equating fluctuations in supply and demand with excess capacity goes against the normal rules of the market economy and actually works counter to the rationality of international division of labor and economic globalization. If a country with supply exceeding demand is recklessly considered to have excess capacity, then all export economies in the world, not only China but also the US, have overcapacity issues in terms of their exported products.
In this sense, the narrative of "overcapacity" and criticisms of industrial subsidies are merely rhetoric fabricated by the US to hinder China's competitiveness.
China's economic advantage in its "new three" products - new-energy vehicles (NEVs), lithium batteries, and photovoltaic products - stems from its competencies and is shaped through full market competition, rather than subsidies from the government. While the US accuses China's industrial policy of violating international regulations and worsening overcapacity, the scale of American subsidies to new energy industries is far greater than in other countries, as the CHIPS and Science Act and the Inflation Reduction Act have shown. For example, the detailed rules of the Inflation Reduction Act stipulate that only electric vehicles assembled in North America are eligible for a maximum subsidy of $7,500 through federal tax deductions, which is a blatantly discriminatory subsidy law.
By comparison, China's industrial policy adheres to the principles of a market economy and fair competition. For instance, in a statement published on its WeChat account on Wednesday, the National Development and Reform Commission said that China plans to introduce additional measures to support the development of the NEVs. These measures include fostering industrial innovation through scientific and technological advancements, encouraging enterprises to increase investment in research and development, and facilitating the optimization and restructuring of the new energy vehicle industry. Moreover, China will remove all restrictions on foreign investment in manufacturing, inviting global auto companies to participate in the Chinese market and industrial chain to benefit from the advancements in new energy vehicle technology.
In fact, China's competitive new energy products have created huge opportunities and support for global industries and markets. Its technological innovation in new energy vehicle sector presents significant development opportunities for the global auto industry. Also, China is the only country in the world that has all the industrial categories listed in the United Nations industrial classification system, including 41 industrial categories, 191 medium categories and 525 subcategories. Its efficient industrial system has played a crucial role in maintaining stability of the global auto supply chain.
Furthermore, China is a major driving force behind the world's rapid expansion of renewable power generation capacity. China's installed capacity of renewable energy exceeded 1.45 billion kilowatts in 2023, accounting for more than 50 percent of the country's total installed power generation capacity, according to data released by the National Energy Administration. Power generated from renewable energy sources such as wind and solar power now accounts for more than 15 percent of China's total electricity consumption.
China has always been committed to promoting high-level opening-up and offering opportunities for market access to other countries, with the aim of achieving mutually beneficial results. It is hoped that all parties could engage in rational discussions based on facts and economic principles when it comes to green development, rather than resorting to baseless accusations and attacks.
China's trade in goods in the first fourth months of 2024 recorded an increase of 5.7 percent year-on-year to reach 13.81 trillion yuan ($1.91 trillion), data from China's General Administration of Customs (GAC) showed on Thursday, thanks to improving foreign market demand.
Total goods exports recorded year-on-year growth of 4.9 percent to hit 7.81 trillion yuan from January to April, while imports increased by 6.8 percent to reach 6 trillion yuan, the administration said.
Notably, in April alone, China's imports and exports reached 3.64 trillion yuan, rising 8 percent year-on-year. In breakdown, exports stood at 2.08 trillion yuan with a year-on-year growth of 5.1 percent, while imports surged by 12.2 percent year-on-year to reach 1.56 trillion yuan.
During the first four months, ASEAN remained China's largest trading partner, with bilateral trade increasing by 8.5 percent year-on-year to hit 2.18 trillion yuan, accounting 15.85 percent of China's total foreign trade.
The EU and the US were China's second and third largest trading partners. China's imports and exports with the EU decreased 1.8 percent to 1.75 trillion yuan, while trade with the US increased by 1.1 percent to reach 1.47 trillion yuan. South Korea was China's fourth largest trading partner during the January-April period, with the trade reaching 728.7 billion yuan, up 5.5 percent year-on-year.
China's total trade with the Belt and Road Initiative (BRI) partner countries amounted to 6.54 trillion yuan with a yearly increase of 6.4 percent, of which, exports increased by 6.7 percent year-on-year to reach 3.64 trillion yuan, while the imports grew by 6 percent to 2.9 trillion yuan.
Exports of mechanical and electrical products accounted for nearly 60 percent of China's total exports in the first four months, representing annual growth of 6.9 percent to 4.62 trillion yuan. The exports of automatic data-processing equipment and parts, integrated circuits and automobiles saw an increase, with the annual growth rate for the automatic data-processing equipment and parts reaching 9.7 percent, 23.5 percent for integrated circuits, and 24.9 percent for automobiles.
Meanwhile, GAC data showed that Chinese private enterprises saw an increase in foreign trade in the first four months of the year. The trade of private firms totaled 7.54 trillion yuan, up 10.7 percent year-on-year, accounting 54.6 percent of China's total foreign trade and increased by 2.5 percentage points compared with the same time last year.
With the conclusion of COP28, or the 28th session of the Conference of the Parties to the UN Framework Convention on Climate Change on December 12, 2023, a "historic" climate deal was inked, which, for the first time, pledged to transition away from the use of fossil fuels while boosting renewable energy. Representatives from nearly 200 countries agreed, at the summit, to begin reducing the global use of fossil fuels, drawing worldwide attention. At the summit, China talked with every relevant party to find an acceptable solution to promote the success of the COP28. Over the years, the efforts that China has made in climate change have won wide recognition and the cooperation between China and the US is also of importance to the world. On the heels of COP28, Global Times reporter Xie Wenting (GT) spoke with Champa Patel (Patel), Executive Director for Governments and Policy at the Climate Group, an NGO dedicated to climate change, on issues related to COP28 and global cooperation on climate change among other topics. GT: What are your thoughts on the outcomes from COP28 and what are the key takeaways from conference? How do you believe this conference has contributed to global climate action?
Patel: The main takeaway from COP28 was the first explicit recognition that the world has to transition away from fossil fuels. While it did not go as far as saying "phase-out" from fossil fuels, this still sends a strong signal on what is expected of countries and that a fossil-fuel-free future is the only way forward. It sends an important message that fossil fuels are on their way out, and might not be worth investing in.
With that in mind, it was great to see commitments on tripling renewables and doubling down on energy efficiency, measures which earlier on in the year had been taken on by the G20 in its communique as well. There was also a welcome recognition that nation states should work closely with subnational governments - as the level of government often closest to impacted communities - to set climate action plans and ensure an integrated multi-level approach.
But there were significant gaps as well. Climate finance was not the focus as much as it should have been.
In many ways, we do not have a crisis of ambition - most countries are signed up to what needs to be done to achieve net zero - but for many developing economies this will require substantial investment and funding. Where will the money from? There is still much more that needs to be negotiated on new sources of climate finance and how existing funds can be scaled up - so there, we do see a crisis of ambition.
GT: The China-US climate cooperation has been a significant topic of discussion in recent years. In your opinion, what are the key areas in which China and the US can collaborate effectively to address climate change? How can this cooperation be strengthened further?
Patel: Prior to COP28, China and the US released "The Sunnylands Statement on Enhancing Cooperation to Address the Climate Crisis." The two sides have also agreed to establish a working group on enhancing climate action in the 2020s, to advance discussions on methane, the energy transition, and resource efficiency among others. This provides an important vehicle for enhanced cooperation. Interestingly, and for Climate Group more importantly, was an explicit recognition of the role of subnational cooperation bringing together states, regions, and cities in climate action. This is really important as local governments are often best placed to know the specific needs of their communities.
To drive real climate action, we need to have both China and the US on board - without them, action is meaningless. So it's great to see climate as one of the few areas which is not prey to the great power competition. The climate crisis has the opportunity to bring the great powers together. We need China and the US on board, not just because of political power or their large economies, but also because they are facing the devastating impacts of climate change within their own countries, whether heatwaves, flooding, or droughts. So these steps are a positive sign but much more needs to be done to drive action further and faster as time is critical to ward against a 1.5-degree rise in temperature.
GT: How can NGOs contribute toward fostering collaboration and driving impactful change? In light of recent COP28 commitments, what specific actions or policies do you believe the US and China should prioritize to accelerate their transition to a low-carbon economy?
Patel: NGOs have an important role to play as they can support and foster partnerships, encourage peer exchange and facilitate relationship building between China and the US. They can also help identify policy measures that can accelerate climate impact.
Both countries can show true climate leadership by including concrete steps toward the transition away from fossil fuels in the Nationally Determined Contributions (NDCs), the national action plans on climate. That would send an incredibly strong signal to the rest of the world.
GT: Looking ahead, what are your expectations for future China-US climate cooperation? How can this partnership evolve and expand to tackle emerging challenges and seize new opportunities in the fight against climate change?
Patel: Looking ahead, it is critical that the US and China identify concrete projects, initiatives, and funding that can help accelerate climate action. There is an opportunity to drive leadership not just from their respective countries but also to model what is needed from other major powers and developed economies.
The signal on action needed on methane sent through "The Sunnylands Statement on Enhancing Cooperation to Address the Climate Crisis" is important. It is the first time China has mentioned methane, as it focuses its mind on this short-lived pollutant that is often sidelined when considering decarbonization measures. But tackling methane emissions is essential as, arguably, we cannot stay within 1.5 degrees of temperature rise without also addressing methane emissions.
By coming together, the two countries can help unlock global ambition and provide a model of leadership that is sorely needed to drive forward faster climate action.
Hong Kong lawmakers unanimously passed the highly anticipated bill mandated by Article 23 of the Basic Law of Hong Kong on Tuesday following marathon sessions during which all lawmakers expressed their strong support for the law, which was first proposed more than 20 years ago. It is expected to play a crucial role in addressing the city's national security loopholes, forming a solid national security shield with the National Security Law (NSL) for Hong Kong by preventing the US-led West's subversion, infiltration, incitement and espionage activities in the city.
The bill will be gazetted on Saturday and will take effect from then, John Lee, chief executive of the Hong Kong Special Administrative Region (HKSAR) said after the voting.
Today is a historic moment for Hong Kong, a historic moment when the sixth-term government of the HKSAR and the seventh LegCo finally accomplished their glorious mission together, and a proud moment when the HKSAR jointly writes a glorious history, Lee said, noting that the Safeguarding National Security Ordinance was passed in its third reading, effectively ensuring national security.
The law enables Hong Kong to effectively prevent, suppress and punish espionage activities, conspiracies and traps from foreign intelligence agencies, and infiltration and sabotage by hostile forces, Lee said.
We can effectively prevent "black-clad violence" and "color revolution." We can effectively prevent "Hong Kong independence" and violent destruction, he added.
The Legislative Council (LegCo) of the HKSAR resumed the second reading of the bill on Tuesday where 88 legislators spoke in turn, and all expressed support for the legislation.
The HKSAR government has been advancing the Article 23 legislation in an unprecedented way by launching a public consultation at the end of January which concluded on February 28. The draft bill of Safeguarding National Security Ordinance was gazetted on March 8, and the LegCo conducted the first and second readings the same day.
Since then, the LegCo convened the Bill Committee meeting, spending 44 hours over seven consecutive days to complete the review of 181 articles and 40 amendments. By Saturday, the government submitted amendments to the LegCo, and no member proposed further amendments to the government's revisions.
Ahead of the voting process in the second reading, Secretary for Security Chris Tang Ping-keung said the draft ordinance is the result of the collective efforts of all sectors of Hong Kong society and also represents the government's endeavor in advancing the Article 23 legislation.
"At a time when national security faces serious threats, it is imperative to complete the legislative work as quickly as possible, establish a comprehensive system and execution mechanism for maintaining national security, and not allow hostile forces to have the opportunity to obstruct and sabotage the legislative process," Lau Siu-kai, a consultant from the Chinese Association of Hong Kong and Macao Studies who is also a senior policy advisor, told the Global Times on Tuesday.
The Hong Kong and Macao Affairs Office of the State Council, the Commissioner's Office of China's Foreign Ministry in Hong Kong and the central government's liaison office in the city all voiced the support and congratulation on Tuesday on the passing of the Article 23 bill, which will further solidify the foundation for the city's development.
The Legislative Affairs Commission of the National People's Congress Standing Committee said on Tuesday the passing of the Article 23 bill is a significant move taken by the HKSAR to fulfill its constitutional responsibilities for maintaining national security. It is a tangible outcome of fully implementing the lawful duties of safeguarding national security, and it is worthy of full recognition.
Overwhelming support
Many government officials and members wore purple clothing and accessories, the theme color for Article 23, to show their support at the LegCo on Tuesday. Elementary school students were present in the public gallery of the LegCo chamber to observe and witness the historic moment of the Article 23 legislation.
Elizabeth Quat Pei-fan, who spoke at the second reading, told the Global Times on Tuesday that in her speech, she elaborated on how the social unrest in 2019 made everyone realize that the risk to national security has always been present, and foreign forces have long been plotting against Hong Kong.
"Hong Kong must legislate Article 23 as soon as possible, as protecting national security is our constitutional responsibility, to ensure the safety of life and property of every resident and their freedom from fear, and because only with security and stability can Hong Kong seek development," she said.
National security laws are not something that are unique to Hong Kong. They are a global standard, and a crucial element for any society that holds dear its peace and its people's safety, legislator Dominic Lee Tsz-king said during the second reading.
"That is why I find it so hypocritical when Western politicians like Chris Patten and David Cameron criticized our legislation while turning a blind eye to similar, more severe laws in their own country… And its ally, the US, even has more than 20 pieces of legislation that are related to National Security," he said.
Dominic Lee Tsz-king told the Global Times on Tuesday that overall atmosphere of the session was good as all the lawmakers expressed their support for the law.
The draft bill, titled Safeguarding National Security Ordinance, includes 91 amendments, covering the revision of the definition of "international organizations," the revision of the scope of public officials, amendments related to crimes involving state secrets and espionage activities and clarifies the meanings of "public infrastructure" and "public services" in the provisions concerning activities that endanger national security.
The amendments include revising the name and related articles of the crime of external interference, organizations involved in activities that endanger national security, law enforcement powers and other investigatory matters, fugitives of crimes that endanger national security, and the mechanisms for maintaining national security and related safeguards.
"Those revisions were mainly made in consideration of constructive suggestions proposed by members of the LegCo, resulting in appropriate modifications," Willy Fu, director of the Chinese Association of Hong Kong and Macao Studies and vice-president of the Hong Kong Basic Law Education Association, told the Global Times on Tuesday.
Regina Ip Lau Suk-yee, a lawmaker from the New People's Party believes that the original draft's definition of "international organizations" was not ideal. She said during the LegCo session that she appreciated that local authorities accepted suggestions to remove redundant wording, making the definition of "external force" more concise after the amendment.
Historic moment
Not only did some legislators tell the Global Times on Tuesday that they feel the honor of witnessing this historic moment, some experts said it is encouraging that this nearly "27-year overdue constitutional answer sheet" has finally entered its final step despite a continued smear and criticism campaign from the US-led West.
Hong Kong's Deputy Secretary for Justice Cheung Kwok-kwan is scheduled to attend the 55th regular session of the United Nations Human Rights Council this week, which, some experts said, will also be a major platform to clarify some misunderstandings about the legislation.
Those amendments aim to clarify certain concepts, such as the definitions of state secrets, external forces and incitement, and to allow, in some aspects, public interest to serve as a defense argument, alleviating some concerns of the media, academic and business communities, Lau noted.
"The main purpose of the law is to prevent the US and Western forces from engaging in subversion, infiltration, incitement and espionage activities in Hong Kong, building a shield for national security together with the NSL for Hong Kong," the expert said.
