Source: People’s Republic of China – State Council News
BEIJING, Sept. 24 — The China Securities Regulatory Commission (CSRC) on Tuesday announced new measures aimed at guiding mergers and acquisitions (M&A) among listed companies, and soliciting public opinion on a guideline about market value management practices.
Regarding the M&A, the CSRC emphasized its commitment to actively support listed companies in pursuing M&A activities centered around strategic emerging industries and future industries.
The CSRC aims to channel more resources toward new quality productive forces. Additionally, it encourages listed companies to enhance industrial consolidation.
Regarding market value management, the CSRC’s draft guideline for public consultation requires listed companies to focus their efforts on enhancing company quality, boosting operational efficiency and increasing profitability.
They are encouraged to lawfully and compliantly use M&A, equity incentives, cash dividends, investor relations management, information disclosure and share repurchases to elevate their investment value.
The guideline explicitly prohibits listed companies from engaging in illegal activities under the guise of market value management.
Source: People’s Republic of China – State Council News
China to deepen financial reform, openness, high-quality development: Chinese vice premier
BEIJING, Sept. 24 — China will further deepen financial reform and opening-up, and promote high-quality development in the financial sector, Chinese Vice Premier He Lifeng said in Beijing on Tuesday.
He, also a member of the Political Bureau of the Communist Party of China (CPC) Central Committee, made the remarks when meeting separately with members of the international advisory committee of China Investment Corporation (CIC), and Evan Greenberg, executive vice chair of the National Committee on U.S.-China Relations and the chairman of insurance company Chubb Limited.
During the meeting with members of the committee, He said that China will deepen financial system reform, accelerate the establishment of a modern financial system with Chinese characteristics, and promote high-quality development of the financial sector.
He expressed hope that the members would continue to provide suggestions and make contributions to China’s reform and opening-up, as well as the development of CIC.
When meeting with Greenberg, He said China will steadfastly promote high-level opening-up of the financial sector and welcomed Chubb Group to continue actively participating in the development of China’s financial market.
He added that the National Committee on U.S.-China Relations is expected to play a more effective role as a bridge and link between the two countries, facilitating exchanges and cooperation among the business communities, and achieving greater mutual benefit and win-win outcomes.
Members of the international advisory committee of CIC and Greenberg expressed their belief that further comprehensive and deepened reforms in China will bring new potential and vitality to the country’s economy and financial sector. They remain confident in the prospects of China’s economy and financial markets.
Source: People’s Republic of China – State Council News
BEIJING, Sept. 24 — The National Financial Regulatory Administration announced on Tuesday the expansion of the pilot program for equity investments by financial asset management companies.
According to a circular issued by the administration, the pilot program will now extend beyond Shanghai to include 17 other cities, including Beijing, Tianjin, Chongqing, Nanjing, Hangzhou, Hefei, Jinan, Wuhan, Changsha, Guangzhou, Chengdu, Xi’an, Ningbo, Xiamen, Qingdao, Shenzhen and Suzhou.
Since 2020, financial asset management companies established by major commercial banks have been conducting equity investment pilots in Shanghai. The circular introduces adjustments to the policies governing the Shanghai pilot program.
It relaxes the limits on the amounts and ratios of equity investments. The percentage of on-balance sheet funds that financial asset management companies can allocate to equity investments has been increased from 4 percent to 10 percent of total assets as of the end of the previous quarter.
Additionally, the maximum amount that can be invested in a single private equity fund has been raised from 20 percent to 30 percent of that fund’s total issuance size.
The circular also enhances the due diligence exemption and performance evaluation systems.
The administration stated that it will guide five financial asset management companies in effectively implementing these policy measures and actively promoting the rollout of more projects.
At the same time, it will collaborate with relevant departments to summarize experiences, optimize supporting policies, and further explore the expansion of pilot cities, ensuring that pilot programs yield tangible results.
Source: People’s Republic of China – State Council News
BEIJING, Sept. 24 — China’s Minister of Water Resources Li Guoying on Tuesday highlighted global joint efforts to develop water governance strategies and tackle water security challenges.
Li made the remarks during the opening ceremony of the third Asia International Water Week (AIWW) in Beijing.
During the opening ceremony, Li and President of the Asia Water Council Seogdae Yun jointly signed the “Beijing Declaration — Asia to World Statement of the Third Asia International Water Week.” The declaration urges global cooperation to cope with water problems caused by climate change, accelerated urbanization and population growth.
The declaration emphasizes the need to develop solutions through innovation drives, international cooperation and knowledge sharing to promote sustainable development, thereby ensuring future water security in Asia and the world.
Highlighting the importance of innovative strategies and policies, the declaration urges efforts to strengthen the integrated management of river basins and explore flexible financing methods, such as government-market collaboration, to construct water and sanitation infrastructure projects.
It calls for a digital transformation in water management, underscoring the need to develop smart dam theory and practice through the application of big data, artificial intelligence and digital-twin technologies. It also stressed the need to simulate and predict changes in water resources and optimize water resources allocation and scheduling.
Work should be done to formulate effective disaster prevention and climate change adaptation strategies, while also promoting water conservation and efficiency gains in agricultural water use, according to the declaration.
It also underscored the importance of strengthening river and lake ecological flow and health management, and advocating nature-based solutions in ecosystem restoration.
The third AIWW is co-hosted by China’s Ministry of Water Resources and the Asia Water Council, under the theme “Enhancing Our Future Water Security.”
The event attracts approximately 600 international delegates from 70 countries and regions and over 20 international organizations and institutions. It also draws around 700 domestic attendees involved in water conservancy.
Source: United States House of Representatives – Congressman John Moolenaar (4th District of Michigan)
Headline: Biden & Harris Must Do More To Protect Americans From CCP Auto Threats
Today, the Biden administration proposed a new rule which would ban US automakers from selling vehicles with components produced by the Chinese Communist Party.
“Today’s rule from the Biden-Harris team fails to do enough to protect Michigan workers and the American people from CCP threats to our auto industry. While the administration has concluded Chinese auto components and software are a national security threat, Biden and Harris must now stop their giveaway of taxpayer dollars to CCP-affiliated companies. They should support my NO GOTION Act, which will stop Chinese companies from collecting billions of dollars from American taxpayers. Finally, while Biden and Harris talk tough on China, their EV rules play into the hands of the CCP, and make our auto industry dependent on supply chains controlled by China. They must end those rules and let American autoworkers innovate,” said John Moolenaar, the chairman of the House Select Committee on the Chinese Communist Party.
Currently, CCP-affiliated companies qualify for green energy production tax credits created by the Inflation Reduction Act. Gotion has previously claimed it is “reviewing and assessing” how it can utilize these tax credits.
China’s top political advisor Wang Huning on Tuesday called for a thorough study of President Xi Jinping’s recent speech on the Chinese People’s Political Consultative Conference (CPPCC) to promote the high-quality development of the CPPCC work. Wang, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee and chairman of the CPPCC National Committee, made the remarks while addressing a meeting of the Chairpersons Council of the CPPCC National Committee. The senior political advisors studied the speech delivered by Xi, general secretary of the CPC Central Committee, at a meeting celebrating the 75th founding anniversary of the CPPCC on Sept. 20. Xi’s speech has set out clear requirements for promoting wide, multi-tiered and institutionalized consultative democracy, and has made comprehensive arrangements for carrying out effective CPPCC work at present and in the near future, Wang said, urging efforts to study and implement the speech. The Chairpersons Council meeting also studied other recent speeches and instructions by Xi, and reviewed and passed documents including revised regulations of the CPPCC National Committee for reporting on social conditions and public sentiment.
China on Tuesday pledged to intensify efforts to ensure workplace safety and enhance fire prevention and suppression in forests and grasslands during the autumn and winter seasons. A video conference focusing on the efforts was held in Beijing on Tuesday. The conference called for a strong problem-oriented approach and robust measures to effectively manage safety production and forest fire prevention, with a firm commitment to preventing major accidents and fires. It emphasized the need to advance a three-year campaign aimed at addressing fundamental issues in workplace safety, with a focus on further strengthening the supervision of hazardous materials, construction operations and thermal insulation materials. Authorities were urged to enhance the capacity for fire safety oversight at the grassroots level and to rigorously investigate and rectify major safety hazards. The meeting also stressed the importance of proactive prevention, calling for the implementation of responsibilities and measures for forest fire prevention at the grassroots level to minimize fire risks as much as possible, and ensuring the safety of both the public and firefighting personnel. Zhang Guoqing, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee and vice premier of the State Council, attended the meeting and delivered a speech. Wang Xiaohong, a member of the Secretariat of the CPC Central Committee and state councilor, presided over the conference.
China on Tuesday made public a guideline on arable land protection, aiming to implement the strictest possible protection system and introducing robust measures with real enforcement “teeth” to combat the erosion of arable land. The guideline, issued by the general offices of the Communist Party of China Central Committee and the State Council, stated that the national arable land area should not fall below 124.33 million hectares, with the area of permanent basic farmland set at no less than 103 million hectares. To achieve these goals, China will implement the most stringent possible arable land protection policies, introducing robust measures to combat the conversion of arable land to non-agricultural uses and to prevent permanent basic farmland from being utilized for non-grain production. Local Party committees and governments will be required to treat the protection of arable land and permanent basic farmland as a critical political task. They must ensure that the established protection threshold is never breached, and that strict accountability measures are in place for violations, including a “one-vote veto” punishment for officials who breach protection guidelines severely. To boost land quality, the document emphasizes the gradual upgrade of permanent basic farmland to high-standard farmland that is suitable for cultivation, resilient to drought and flooding, and capable of ensuring high and stable yields. A national plan will be developed for this transformation, with priority given to areas in northeast China’s black soil region, plains and regions with irrigation capabilities. The government will implement black soil protection initiatives, adjusting protective measures to encompass all necessary areas in a timely manner. Law enforcement combating activities that harm the fertile soil will be intensified. Legislation governing the protection of arable land quality will be accelerated, with annual surveys of soil quality changes and comprehensive evaluations conducted every five years, along with a national soil census to be conducted at an appropriate time. Efforts will also be made to develop high-efficiency protected agriculture using non-arable land resources. This will involve exploring the sustainable development of modern protected agriculture in arid and desert regions where water resources allow. These initiatives are part of a broader strategy to ensure national grain security and strengthen the agricultural sector. China continues to prioritize food security, as it feeds over 1.4 billion people with just 9 percent of the world’s arable land. An array of measures has been implemented to improve grain output over recent years, including the construction of more high-standard farmland and the promotion of agricultural technologies. The country has developed about 66.7 million hectares of high-standard farmland as of the end of 2023, with 13 key grain-producing provincial-level regions accounting for around 70 percent of that total. According to the Ministry of Agriculture and Rural Affairs, China has the sound fundamentals to reap a bumper autumn grain harvest following the summer harvest this year, despite severe disasters triggered by extreme weather in parts of the country.
Research vessel Deep Sea No. 1 arrives at Tsim Sha Tsui Ocean Terminal in Hong Kong, south China, Sept. 24, 2024. [Photo/Xinhua] China’s research vessel Deep Sea No. 1, carrying manned submersible Jiaolong, received a warm welcome Tuesday in the Hong Kong Special Administrative Region (HKSAR), the first time they visited the city. The vessel is on a home-bound voyage after completing a scientific mission in the Western Pacific Ocean. During their two-day stay in Hong Kong, scientists on board will give lectures to Hong Kong students and hold a number of international seminars to share the results of this scientific expedition. Warner Cheuk, deputy chief secretary for administration of the HKSAR government, said that the visits ahead of the 75th anniversary of the founding of the People’s Republic of China fully demonstrated the central government’s care and support for Hong Kong’s marine scientific research development and ecological conservation. It is hoped that this event will inspire more young people in Hong Kong to engage in deep-sea research and make planet Earth a better place to live in, he said. Wu Changbin, director of China Ocean Mineral Resources R&D Association, congratulated the successful completion of the Western Pacific international voyage scientific expedition, saying that this voyage not only enhanced China’s scientific understanding of deep-sea biodiversity and ecosystems but also contributed important scientific data to global marine scientific research. The scientific expedition team of Chinese and foreign scientists set sail on Aug. 10 from Qingdao, east China’s Shandong Province, and made a total of 18 dives in the Western Pacific. It was the first time that foreign scientists have carried out deep-sea scientific research on Jiaolong.
China is on the way to establishing a complete service system that will remarkably improve the lives of hundreds of millions of senior citizens in the country, according to the Ministry of Civil Affairs. China will build an elderly-friendly society by improving its social security system, elderly care services and health supports, Minister of Civil Affairs Lu Zhiyuan has said, noting that an elderly care services system with distinctive Chinese features is expected to become well-developed and smoothly functional by 2035. There were 297 million people aged 60 or above in China at the end of 2023, accounting for 21.1 percent of the country’s total population. The country is taking a proactive approach to population aging, acknowledging it as a reality China must face squarely on its path to modernization. While challenges exist, this demographic shift also presents opportunities, Lu said at a press conference on high-quality development held in Beijing on Monday. Elderly care in China has transitioned from a security net providing basic livelihood support to a system of quality services that integrates both medical and health care, Lu said. Elderly care services have also diversified from a government-centric model to including both government and market participation, as well as more social stakeholders, the minister said. In a nod to the habits and preference for aging at home among most of its senior citizens, the country will develop a services supply structure characterized by coordination and interconnection between homes, communities and institutions, Lu said. Among measures to shore up at-home elderly care, the central government has allocated 300 million yuan (42.5 million U.S. dollars) in guiding funds to support the development of catering services for the elderly in 2024, Vice Minister of Civil Affairs Tang Chengpei said at the Monday press conference. Elderly individuals facing the challenges of advanced age, disabilities, empty nests or living alone are the focus of this endeavor, Tang said. He noted that simultaneously, the country is expanding its catering services network continuously to deliver convenient meal services to the doorsteps of more senior citizens. Catering programs have been rolled out in many regions to help elderly people access local meal services, with community canteens being a common form of these services.
This photo taken with a mobile phone shows people watching a sand table model of a real estate project in east China’s Shanghai, May 28, 2024. [Photo/Xinhua]
China’s central bank, top securities regulator and financial regulator on Tuesday announced at a press conference a raft of monetary stimulus, property market support and capital market strengthening measures to boost the country’s high-quality economic development.
Monetary stimulus
Pan Gongsheng, governor of the People’s Bank of China, said China would cut the reserve requirement ratio (RRR) by 0.5 percentage points in the near future, providing about 1 trillion yuan (about 141.82 billion U.S. dollars) in long-term liquidity to the financial market.
Depending on the liquidity situation in the market, RRR may be further lowered by 0.25 to 0.5 percentage points within the year, Pan said.
He said that the central bank will reduce the interest rate of seven-day reverse repurchases from 1.7 percent to 1.5 percent.
The reduction was aimed at guiding the loan prime rate and deposit rate to move downward and maintaining stability in the net interest margin of commercial banks, said Pan.
Pan said the central bank would keep monetary policy accommodative, strengthen monetary policy regulation, make monetary policy regulation more precise, and create a sound monetary and financial environment for stable economic growth and high-quality development.
China targets economic growth of around 5 percent in 2024.
The country’s economy maintained stable expansion in the first half of the year despite rising challenges from home and abroad.
Data from the National Bureau of Statistics (NBS) showed that China’s gross domestic product (GDP) grew 5 percent year on year in the period to 61.68 trillion yuan. In the second quarter, China’s GDP expanded 4.7 percent year on year.
Mortgage rate cuts
Pan added that China will lower mortgage rates on existing home loans to a level similar to those of newly issued housing loans.
The average reduction in mortgage rates for existing home loans is expected to be around 0.5 percentage points, he said.
“The new policy, which is conducive to further reducing borrowers’ mortgage interest expenses, is expected to benefit 50 million households, or a population of 150 million,” said Pan.
This move is expected to reduce the total interest expenses for households by approximately 150 billion yuan per year on average, which will help boost consumption and investment, he added.
The minimum down payment ratio for both first and second homes will be unified, with the nationwide minimum down payment ratio for second homes to be reduced from 25 percent to 15 percent, Pan said.
On May 17, China announced the establishment of a 300-billion-yuan re-lending facility that supports local state-owned enterprises to buy commercial homes for affordable housing.
Pan said the central bank will increase its funding proportion in the affordable housing re-lending policy from the original 60 percent to 100 percent.
“This adjustment will help accelerate the reduction of inventory in the commercial housing market,” Pan said.
China’s large and medium-sized cities saw month-on-month declines in both new and second-hand home prices in August, NBS data showed.
Financial market support
Moreover, the central bank will create new monetary policy tools to support the stable development of the stock market, said Pan.
The central bank will establish a swap program for securities, funds and insurance companies to obtain liquidity from the central bank through asset collateralization. The program will significantly enhance companies’ ability to acquire funds and increase their stock holdings, Pan said.
The central bank will also create a special re-lending facility to guide banks to provide loans to listed companies and their major shareholders for buybacks and increasing shareholdings, he said.
Experts consider the release of the new batch of policies a positive signal of strengthening policy coordination and efforts to achieve the annual economic growth target.
The central bank’s policies, which exceed market expectations, will boost market confidence, stimulate the vitality of business entities, stabilize credit levels, and enhance the sustainability of financial support for the real economy, said Wen Bin, chief economist at China Minsheng Bank.
To better channel funds into the capital market, China will issue a guideline that seeks to improve the entry supporting system of various types of medium and long-term funds into the capital market, according to Wu Qing, head of the China Securities Regulatory Commission.
The commission will also release six measures to promote mergers and acquisitions, and work with various parties to facilitate the circulation of private equity and venture capital funds in the process of fundraising, investment, management and withdrawal, Wu said.
More efforts will be made to protect the legitimate rights and interests of small and medium-sized investors, and firm actions will be taken to crack down on illegal activities such as financial fraud and market manipulation, according to Wu.
Li Yunze, head of the National Financial Regulatory Administration, said China plans to increase the tier-1 capital of six major commercial banks.
The capital will be injected in an orderly manner, with coordinated advancement, phased implementation and tailored policies, said Li.
Tier-1 capital refers to the core capital held in a bank’s reserves, including common stock and disclosed reserves.
China’s major stock indices surged following the release of the policies and measures, with the Shanghai Composite Index and the Shenzhen Component Index both closing with an increase of more than 4 percent.
President Lai addresses 2024 Concordia Annual Summit 2024-09-25
On the morning of September 25 (afternoon of September 24 EDT), President Lai Ching-te addressed the 2024 Concordia Annual Summit via video at the invitation of the New York-based non-profit organization Concordia, speaking on Taiwan’s key priorities in the current international security environment and vision for the future. In his remarks, President Lai said that democracy around the world is facing serious threats, citing as examples Russia’s invasion of Ukraine and China’s intensifying military intimidation in the Taiwan Strait and the East and South China Seas. The president indicated that through its use of gray-zone tactics such as economic coercion and cognitive warfare, China poses serious threats to global peace and stability. He said that China often uses lawfare and distorts history to expand its power, an example being its distortion of United Nations General Assembly (UNGA) Resolution 2758. The president thanked the United States and the Inter-Parliamentary Alliance on China (IPAC) for taking concrete actions to oppose China’s misinterpretations. President Lai reiterated that democratic Taiwan and authoritarian China are not subordinate to each other, and that we will maintain peace and stability in the Taiwan Strait by promoting our Four Pillars of Peace action plan. The president expressed hope that Taiwan and other democratic nations will jointly support the democratic umbrella and counter authoritarian aggression as we navigate a new era in global democratic development. President Lai expressed that a stronger Taiwan is better able to promote democracy, peace, and prosperity around the world, and that we welcome more countries to join in support of democratic Taiwan and a stronger democracy worldwide. A transcript of President Lai’s speech follows: I want to begin by thanking Concordia for the opportunity to address the Annual Summit. Since my inauguration in May, I have been sharing Taiwan’s roadmap for development at various international venues. I’m honored to speak on our key priorities in the current international security environment, as well as our vision for the future. Our goal is to make Taiwan stronger, because a stronger Taiwan is better able to promote democracy, peace, and prosperity around the world. Our sincere hope is for Taiwan and other democratic nations to jointly support the democratic umbrella and counter authoritarian aggression as we navigate a new era in global democratic development, echoing the theme of this summit. Democracy around the world is facing serious threats. We have seen the growth of authoritarianism and Russia’s invasion of Ukraine, which has exceeded two years. And we have seen China intensifying its military intimidation in the Taiwan Strait and the East and South China Seas. Through its use of gray-zone tactics such as economic coercion and cognitive warfare, China poses serious threats to global peace and stability. China often uses lawfare and distorts history to expand its power. I want to emphasize that democratic Taiwan and authoritarian China are not subordinate to each other. This is a fact with a long-established, global consensus. Regardless of that, China has distorted UNGA Resolution 2758 in support of its “one China principle,” falsely claiming that Taiwan is a part of the People’s Republic of China and that we have no right to participate in the UN system and other international fora. I would like to thank the US and IPAC for taking concrete actions to oppose China’s misinterpretations. We welcome more countries to join in support of democratic Taiwan and a stronger democracy worldwide. China’s threat to Taiwan is a threat to the entire international community. China doesn’t just want to change the status quo in the Taiwan Strait. It intends to change the rules-based international order and achieve international hegemony. In this situation, our top priority is to maintain peace and stability in the Taiwan Strait by promoting our Four Pillars of Peace action plan. First, we will strengthen our national defense. We will strengthen our capabilities and show our resolve for self-defense. Second, we will build economic security. We will continue to reduce economic dependence on China. We also aim to sign trade agreements with other democratic countries, participate more in the regional economy, and mutually enhance our economic resilience. Third, we will strengthen our partnerships with democratic countries. Taiwan will continue to cooperate with like-minded partners on “democracy chips.” We will also strengthen cooperation with other countries in national defense so that the democratic community can demonstrate the strength of deterrence and achieve our goal of peace. The final pillar is stable and principled cross-strait leadership. Taiwan will neither yield nor provoke, and will maintain the status quo in the Taiwan Strait. We will remain committed to safeguarding regional peace and stability. The road ahead may be difficult, but as long as we follow it together, I am confident that we can further strengthen democracy and sustain peace. Together, let’s forge ahead on the path to greater prosperity. Thank you. Concordia organizes its annual summit outside the UN headquarters during each year’s General Debate of the UNGA, inviting world leaders and top private sector representatives to seek solutions to global and regional challenges that are highly valued by the UN community. Among those who addressed this year’s summit were President Santiago Peña Palacios of the Republic of Paraguay, President Luis Abinader of the Dominican Republic, Prime Minister Philip Davis of the Commonwealth of The Bahamas, former Prime Minister Theresa May of the United Kingdom, former President Iván Duque of the Republic of Colombia, former President Kolinda Grabar-Kitarović of the Republic of Croatia, US Senators Bill Cassidy and Chris Coons, US House Representative Chrissy Houlahan, UN Deputy High Commissioner for Refugees Kelly Clements, Governor of New York State Kathy Hochul, President of Eurasia Group Ian Bremmer, and President of The Rockefeller Foundation Rajiv J. Shah.
Source: People’s Republic of China – State Council News
BEIJING, Sept. 24 — China is on the way to establishing a complete service system that will remarkably improve the lives of hundreds of millions of senior citizens in the country, according to the Ministry of Civil Affairs.
China will build an elderly-friendly society by improving its social security system, elderly care services and health support, Minister of Civil Affairs Lu Zhiyuan has said, noting that an elderly care services system with distinctive Chinese features is expected to become well-developed and smoothly functional by 2035.
There were 297 million people aged 60 or above in China at the end of 2023, accounting for 21.1 percent of the country’s total population. The country is taking a proactive approach to population aging, acknowledging it as a reality China must face squarely on its path to modernization.
While challenges exist, this demographic shift also presents opportunities, Lu said at a press conference on high-quality development held in Beijing on Monday.
Elderly care in China has transitioned from a security net providing basic livelihood support to a system of quality services that integrates both medical and healthcare, Lu said.
Elderly care services have also diversified from a government-centric model to including both government and market participation, as well as more social stakeholders, the minister said.
In a nod to the habits and preference for aging at home among most of its senior citizens, the country will develop a services supply structure characterized by coordination and interconnection between homes, communities and institutions, Lu said.
Among measures to shore up at-home elderly care, the central government has allocated 300 million yuan (42.5 million U.S. dollars) in guiding funds to support the development of catering services for the elderly in 2024, Vice Minister of Civil Affairs Tang Chengpei said at the Monday press conference.
Elderly individuals facing the challenges of advanced age, disabilities, empty nests or living alone are the focus of this endeavor, Tang said.
He noted that simultaneously, the country is expanding its catering services network continuously to deliver convenient meal services to the doorsteps of more senior citizens.
Catering programs have been rolled out in many regions to help elderly people access local meal services, with community canteens being a common form of these services.
Source: People’s Republic of China – State Council News
BEIJING, Sept. 24 — China on Tuesday pledged to intensify efforts to ensure workplace safety and enhance fire prevention and suppression in forests and grasslands during the autumn and winter seasons.
A video conference focusing on the efforts was held in Beijing on Tuesday. The conference called for a strong problem-oriented approach and robust measures to effectively manage safety production and forest fire prevention, with a firm commitment to preventing major accidents and fires.
It emphasized the need to advance a three-year campaign aimed at addressing fundamental issues in workplace safety, with a focus on further strengthening the supervision of hazardous materials, construction operations and thermal insulation materials.
Authorities were urged to enhance the capacity for fire safety oversight at the grassroots level and to rigorously investigate and rectify major safety hazards.
The meeting also stressed the importance of proactive prevention, calling for the implementation of responsibilities and measures for forest fire prevention at the grassroots level to minimize fire risks as much as possible, and ensuring the safety of both the public and firefighting personnel.
Zhang Guoqing, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee and vice premier of the State Council, attended the meeting and delivered a speech. Wang Xiaohong, a member of the Secretariat of the CPC Central Committee and state councilor, presided over the conference.
Source: People’s Republic of China – State Council News
BEIJING, Sept. 24 — In a village in northwest China’s Shaanxi Province, a center whose name translates as “happy mutual aid” offers two meals a day to over 20 senior citizens.
Each day, the elderly villagers of Wenhua Village gather in the center to enjoy their meals and chat. Some also bring vegetables they have grown or help in the kitchen, which largely relies on social donations for its operations.
Li Huizhi, a retiree who pioneered the institution two years ago, said the place not only helps feed the elderly customers, but also helps them feel less lonely. “Many of the elderly live alone because their children have left home in search of better job opportunities,” Li added.
With 120 million people in rural areas aged 60 or above, China has been exploring diverse and targeted solutions to care for seniors scattered across vast rural areas. They generally have lower incomes than their urban peers and are less willing to live in commercial institutions for daily care.
In June this year, the Chinese government issued a national-level guideline specifically on promoting rural elderly care. The document called for joint participation from the government, villages, non-profit organizations, companies and financial institutions to support the cause.
Data from the Ministry of Civil Affairs shows that China currently has around 16,000 rural elderly care nursing homes that collectively provide over 1.68 million beds. The rural areas are also home to around 145,000 mutual-aid elderly care facilities.
Lu Jiehua, deputy director of the Peking University Center for Healthy Aging and Development, expects China to find the most suitable models of elderly care in the coming years based on grassroots experiences, which include pooling together villagers for mutual aid and integrating medical and elderly care services.
Li Yuqing, 54, is a member of the mutual aid team in a village in the mountainous Miyun District, Beijing. She often visits the homes of her more senior neighbors and checks on their state of health.
“Our team members carry medical kits containing common drugs and tools to test the blood pressure and blood sugar levels of the seniors,” Li said.
They are part of the local government’s effort to employ public-spirited villagers in their 40s and 50s to help elderly neighbors living alone. Each of the younger villagers is designated 10 neighbors nearby to help with cleaning, shopping and accessing medical services.
Zhang Hao, an official with the civil affairs bureau of Miyun, said this model of villagers helping their elderly neighbors suits areas like Miyun because the villages are far away from each other and the elderly are not willing to live in commercial nursing homes.
Apart from mobilizing rural residents, local governments are also pinning hopes on eligible businesses providing door-to-door services to rural seniors.
Lang Zhizun, who runs an elderly care service company in Beijing, said they provide door-to-door services for rural elderly people four times a month, and the local civil affairs bureau pays for it. “We talk to the seniors first and offer help according to their requests,” he said.
Experts believe more input is needed from both the government and social organizations to increase elderly care services and facilities in rural areas, and to optimize the whole system.
In the June document, China set the targets for the further improvement of its rural elderly care service network by 2025. The overall coverage rate of elderly care service centers at the township level will be no less than 60 percent, it noted.
Lu Zhiyuan, minister of civil affairs, has pledged greater efforts to shore up the weaknesses in rural elderly care and ensure the accessibility of basic elderly care services to all senior individuals.
Since 2016, China has also piloted and expanded its trials for long-term care insurance that provides recipients with caregiving guarantees and fiscal subsidies. The initiative prioritized the group of disabled or partially disabled elderly people. China also provides assistance to the low-income rural population with special difficulties, including the elderly.
“I hope more public financial resources can be directed to rural areas to genuinely improve the sense of security and happiness for the elderly there,” said Lu Jiehua.
In today’s Homeland Security and Governmental Affairs Committee (HSGAC) hearing, U.S. Senator Josh Hawley (R-Mo.) made the case for his legislation, the Time to Choose Act, which would restrict consulting firms like McKinsey & Company from receiving government contracts while, at the same time, advising U.S. adversaries like China.
“Why are [U.S. consulting firms] getting taxpayer money, advising our military, and, simultaneously, advising the Chinese military?” Senator Hawley asked incredulously.
[embedded content]
Senator Hawley also pushed back against Bryan Riley, Director of the National Taxpayers Union’s Free Trade Initiative, and his comparison of American soybean farmers to U.S. consulting firms advising the Chinese Communist Party.
“I come from a state where our number one agricultural product is soybeans,” Senator Hawley explained. “We are a state of soybeans farmers, and—I can tell you—I think they would take great offense to you comparing them to a consulting firm that is taking a billion dollars in money from the United States military while simultaneously advising the Chinese military on how to harm the United States.”
He continued, asking, “Are you saying that soybean farmers harm the security interests of the United States?”
Background
The Time to Choose Act passed the HSGAC this past May by an overwhelming bipartisan margin. Senator Hawley originally brought forth the bill in 2022 and reintroduced it earlier this year. HSGAC Chairman Gary Peters (D-Mich.), Senator Rick Scott (R-Fla.), and Senator Marco Rubio (R-Fla.) are cosponsors.
The legislation would prohibit the Department of Defense (DOD) and other federal agencies from contracting with consulting firms like McKinsey that are also doing business with the Chinese government or its affiliates.
Watch Senator Hawley’s full remarks here, or click on the image above.
MANILA, PHILIPPINES (25 September 2024) — The Asian Development Bank (ADB) has maintained its forecast of 4.8% economic growth in the People’s Republic of China (PRC) this year, according to the latest ADB report.
The growth outlook remains balanced amid a prolonged correction in the property market and weak investor and consumer confidence, according to Asian Development Outlook (ADO) September 2024, released today. Economic activity in the PRC is expected to moderate to 4.5% growth next year, consistent with ADB’s projection in April.
“ADB’s research indicates that investment will support domestic demand while the property market correction continues,” said ADB Country Director for the PRC Safdar Parvez. “Global demand and the domestic cost advantage in manufacturing should also bolster exports.”
Inflation for 2024 is now forecast at 0.5%, lower than April’s 1.1% projection as the overall downtrend in food price persists. Strong global demand and increased credit availability for certain industries—including semiconductors; artificial intelligence; and low-carbon technologies such as electric vehicles, lithium-ion batteries, and renewables—will drive growth this year and next.
Infrastructure investment should regain momentum with the expected acceleration of the local government special bond issuance in the second half of this year. However, the ongoing property sector correction is expected to slow growth. The contraction in real estate investment will likely continue into next year.
Risks to the outlook include the deterioration in the property market, global fragmentation due to geopolitical issues, and the escalation of trade tensions. On the upside, acceleration and effective implementation of policy measures, including policies announced in the Third Plenum, could raise consumer and investor confidence faster than expected, resulting in higher growth and inflation than forecast.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
MANILA, PHILIPPINES (25 September 2024) — Moderating inflation, monetary easing, and sustained public spending particularly on major infrastructure projects, will support Philippine economic growth this year and the next, according to a report released by the Asian Development Bank (ADB) today.
In its Asian Development Outlook (ADO) September 2024 report, ADB maintained its growth forecast for the Philippine economy at 6.0% for 2024 and 6.2% in 2025. The expansion in gross domestic product (GDP) will be driven by broad-based domestic demand, supported by lower inflation and interest rates, the report said.
ADB lowered its inflation forecast to 3.6% in 2024 from its April estimate of 3.8%, reflecting the sustained deceleration in food prices partly due to lower tariffs on rice imports. Inflation is expected to ease further to 3.2% in 2025 compared to the previous estimate of 3.4%.
“Most of the ingredients for the Philippines’ sustained economic growth are in place—rising government revenues are boosting public expenditures on infrastructure and social services, increasing employment is driving consumption, and reforms to open the economy to more investments are underway. With inflation slowing, the country is in a strong position to lead growth in Southeast Asia,” said ADB Philippines Country Director Pavit Ramachandran.
However, risks remain from potential severe weather events which could drive inflation higher. External factors such as a sharper slowdown in major advanced economies and the People’s Republic of China, financial volatility due to US monetary policy decisions, geopolitical tensions, and rising global commodity prices also pose threats to growth, the report said.
The Philippine government expects public infrastructure spending to range between 5.0%–6.0% of GDP annually from 2024 to 2028, after hitting 5.8% of GDP in 2023. The government’s “Build Better More” infrastructure program includes 66 ongoing projects and another 31 approved for implementation as of August 2024.
The infrastructure program aims to enhance physical connectivity through railways, bridges, and airports, or strengthen water management through irrigation, water supply, and flood control. Climate change mitigation and adaptation, digital connectivity, energy, and agriculture projects, are also prioritized under this program.
ADB is financing key infrastructure projects, such as the Malolos Clark Railway Project and the South Commuter Railway Project which will link Metro Manila to northern and southern provinces in the Luzon region. It is also supporting the Bataan-Cavite Interlink Bridge Project, and the Integrated Flood Resilience and Adaptation Project which aims to enhance flood and climate change resilience in three major river basins in the country.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
MANILA, PHILIPPINES (25 September 2024) — The Asian Development Bank (ADB) has raised its economic growth forecast for developing Asia and the Pacific this year, amid solid domestic demand and continued strength in exports. ADB has also lowered its forecast for regional inflation.
The region is forecast to grow by 5.0% this year, compared with a projection of 4.9% in April, according to Asian Development Outlook (ADO) September 2024, released today. The forecast for next year is maintained at 4.9%. Inflation in developing Asia and the Pacific is expected to ease further to 2.8% in 2024, compared with a previous forecast of 3.2%.
The improved economic outlook reflects stronger-than-expected expansions in East Asia, Caucasus and Central Asia, and the Pacific. Rising global demand for semiconductors, driven in part by the artificial intelligence boom, is boosting exports, while easing global food prices and the lagged effects of monetary policy tightening have brought inflation down to near pre-pandemic levels.
“Strong economic fundamentals will continue to underpin expansion this year and next,” said ADB Chief Economist Albert Park. “Financial conditions are expected to improve as inflation moderates further and the US eases its monetary policy, and this will support the positive outlook for the region.”
Risks to the outlook include a worsening of trade tensions between the United States (US) and the People’s Republic of China (PRC); further deterioration in the PRC property market; worsening geopolitical tensions; and the effects of climate change and adverse weather on commodity prices and food and energy security.
The growth forecast for the PRC, the largest economy in developing Asia and the Pacific, remains at 4.8% this year and 4.5% next year. Lingering weakness in the PRC’s property sector has negatively affected household spending during 2024. This has been partially offset by higher investment, underpinned by stimulatory monetary and fiscal policies, and higher exports.
India’s economy—the region’s second largest—is forecast to grow 7.0% in 2024, unchanged from April, amid strong domestic demand including an increase in government spending.
The growth forecast for the Caucasus and Central Asia has been raised to 4.7% this year, compared with a 4.3% projection in April, thanks to improved domestic demand bolstered by remittances in some economies. The growth forecast for the Pacific is revised upward to 3.4%, from 3.3% in April, driven by the increase in tourist arrivals. The forecast for Southeast Asia has been lowered by 0.1 percentage points to 4.5%, due to a decline in public investments and slower-than-expected export recovery.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
PHNOM PENH, CAMBODIA (25 September 2024) —The Asian Development Bank (ADB) has maintained its growth forecast for Cambodia at 5.8% for 2024 and 6.0% for 2025. It has revised down its earlier inflation projection for 2024 from 2.0% to 0.5%, reflecting the slow increase in food prices and decline in fuel prices in the first half of 2024, according to the Asian Development Outlook (ADO) September 2024.
“The rebound in the manufacturing sector— especially garments, footwear, and travel goods (GFT) — is powering the country’s economic growth,” said ADB Country Director for Cambodia Jyotsana Varma. “Agriculture and tourism are steadily gaining ground, while continued inflows of foreign direct investment are fueling the country’s economic momentum. Together, these forces are setting the stage for a promising 2024 and positioning Cambodia for robust growth in 2025 and beyond.”
The lowering of inflation forecasts reflects reduced prices of fuel-related goods and services, along with decreased costs of fertilizers, providing support to agricultural production. This will provide much-needed relief for people, especially the most vulnerable, who have faced challenges in recent years due to rising food and fuel prices.
The report highlighted that GFT exports rose by 16.9% year on year in the first half of 2024, rebounding from an 18.6% decline during the same period the previous year. Meanwhile, growth in exports of non-GFT products slowed to 1.3% year on year from 21.2%. Imports of construction materials and equipment surged by 23.3% year on year in the first half of 2024, driven by public infrastructure investment.
Agriculture is projected to grow by 1.2% in 2024 and 1.3% in 2025. Services are forecast to grow by 5.4% in 2024 before tapering to 5.2% in 2025. This forecast is supported by a 22.7% year on year increase in tourist arrivals in the first half of 2024, reaching 94.8% of the pre-pandemic levels in the first half of 2019.
Foreign investment inflows continued although they decelerated somewhat to $2 billion by mid-2024, from $2.1 billion during the same period last year. This was supported by growth in nonfinancial sectors. However, investment in the financial sector slowed appreciably due to lower banking profits.
Potential risks to Cambodia’s economic outlook include weaker growth in major economies like the People’s Republic of China, Europe, and the United States, high private debt, volatile global fuel prices, and severe impact from extreme weather events.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Editor’s note: Chinese President Xi Jinping has consistently championed the rule of law throughout his political career. Since the 18th CPC National Congress in 2012, Xi put forward a series of new ideas, new thinking and new strategies to advance law-based governance in all respects. In this infographic, China.org.cn highlights key aspects of Xi Jinping Thought on the Rule of Law.
Source: United States Senator Tommy Tuberville (Alabama)
“The issues plaguing American producers are directly linked to the harmful policies.”
WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) spoke on the Senate floor about the how the Biden administration’s inflationary policies are hurting American farmers. He stressed the importance of passing a Farm Bill that puts American farmers first.
Read Senator Tuberville’s remarks below or on YouTube or Rumble.
“Mr. President, I rise today to talk about the dire state of our American farm economy and our farmers. American farmers and producers are the backbone of our nation’s agriculture economy and food security.
Despite their critical role in our lives to feed, clothe, and fuel not only the United States, but the entire world, our farmers are struggling to survive—and that’s an understatement. The current state of the agriculture economy is bleak and on the verge of collapse. We have problems all over the world. We have problems in our country. There’s nothing more important. Nothing more important that we should be addressing than our food supply here in this country.
Costs for farmers are rising. Commodity prices are falling. Our farmers cannot break even—much less, make a profit. According to the USDA, net farm income this year is projected to decline 4.4% from 2023 […]. That is a disaster. This follows a shocking—listen to this—a shocking 19.5% decline in 2022.
Not one business in this country can survive with this kind of decline. And our farmers and our farms are no different. This means producer’s income has plummeted 23% in just two years. 23%. These figures represent over $40 billion in lost revenue for America’s hardworking producers. This is the largest two-year decline ever in our farm income, ever in the history of this country.
Right now, our row croppers, especially, are facing considerable financial hardship. According to the American Farm Bureau Federation, row croppers had a $27.7 billion decline in cash receipts since last year. In Alabama, my state, our producers are yielding bumper crops of cotton, peanuts, corn, soybeans, and yet they can’t profit due to [the] rising cost of production. Our catfish producers are in the same boat. Rising input costs and falling fish prices are threatening to put them out of business. A multitude of factors that producers have no control over are impacting their bottom lines.
And I wanna talk about one of them. This miraculous, this ‘world saving’ Inflation Reduction Act that we passed a few years ago, was supposed to ‘save our economy.’ It was supposed to save a lot of workers. You know what it’s done to our farmers? It’s almost put us out of business. The Inflation Reduction Act started a tax credit for imports and exports.
Unfortunately, all the tax credits are going to people, and countries, and farmers from overseas—Brazil and China. [The tax credit] is supposed to go to our farmers, [but] no it’s not gonna do that. For some reason, this Administration [has] given all the tax credits to the farmers from other countries, and our farmers are struggling.
The Biden administration has control, has total control, over our farm economy, but you hadn’t heard a peep out of them, not one peep about our farmers. And this is a disastrous year coming up. And right now, we are harvesting our crops and they’re bumper crops. The issues plaguing American producers are directly linked to the harmful policies, as I just said, from the Biden-Harris administration.
This includes the lack of domestic energy production, skyrocketing inflation, which comes from the Inflation Reduction Act, and endless environmental hurdles. Let me say something about conservation and all the things that happen in our environment. There’s nobody, and I mean nobody on the face of the earth, that takes care and is more conscious of environmental problems than our farmers, because they make a living off our land. But we’re putting so many regulations on them. We’re closing our farms down and running them overseas, and we’re gonna have a national security threat because all of our food is gonna come from foreign countries.
Farmers are experiencing rising high costs of labor [and an] increase [in the] price of feeds, fertilizer, and pesticides. And I’m not going to sugarcoat it. America’s agriculture producers are facing a very tough road ahead. And it’s something nobody, the media, this building, […] The House of Representatives—nobody’s even talking about. Folks, if we can’t eat. If we don’t have food to eat, we’re done.
Many farmers fear that their farm loans this year will not be renewed. They have to have farm loans to put a crop in the ground. They fear cash flow is drying up and interest rates continuing to rise create an uncertain future for farming operations. Although Congress only has a few legislative days left to act, we must stop adding fuel to the Biden-Harris administration’s fire. We’ve got to quit adding fuel. We’ve got to help the farmers.
We need to pass a Farm Bill that helps our farmers. Democrats are [in] control of that. […] A farm bill is for five years. […] Five years ago, the Farm Bill was $870 billion for [a] five-year period. It runs in a five-year period. So, this past year, we’re supposed to be working on a Farm Bill. I’m on the Ag Committee. We go by the control of the Democratic Party. Our Democratic Chairwoman has decided we won’t do a Farm Bill this year.
We’re just throwing farmers underneath the bus. They need help. You would think by looking at everything going on, that my colleagues on the Left would rather our food come from other countries, take over our farmland, control it, and do something else with it.
Producers need a strong safety net—we’ve got to have a safety net for our farmers. Considering no farmer’s risks are the same, we cannot take a one-size-fits-all approach. Remember, we have a Farm Bill that covers livestock, hogs, row croppers, forest, fish. There’s a lot of things involved.
Farmers across the country have fluctuating levels of risk impacted by land and equipment costs, access to irrigation, and variable input requirements. Southern row croppers rely heavily, heavily upon Title I Commodity Programs in the Farm Bill, particularly the Price Loss [Coverage] program and the Agricultural Risk [Coverage] program. Yet Midwest producers heavily utilize crop insurance.
Where there may be an overlap across regions among these programs, we must fix the entire farm safety net, not just parts of it. Take the reference prices and commodity programs, for example. Reference prices are how much prices are in their commodity sells for. Our farmers […] are today operating on 2012 reference prices, 2012. Fourteen years later, the costs of production are 22-31% higher today than they were at that time a decade ago—making current reference prices completely inadequate for our farmers.
We don’t have time to waste. Our farmers are facing an uphill battle to remain in business. […] The American people going to the grocery store are gonna find out pretty quick what it is to be hungry if we don’t wake up and smell the roses.
Even if a Farm Bill is passed today, producers wouldn’t receive any commodity program support from this Farm Bill until 2026. Game, set, match before 2026 for our farmers in this country.
That’s help our farmers need now to survive, not two years late. Senate Republicans stand ready to act on a solid bipartisan bill the House Agriculture Committee passed earlier this year. Yet, Senate Democrats and the Biden administration refused, they refused, to come to the table to find practical, bipartisan solutions to the many problems our farmers are facing today.
‘Let’s don’t worry about our farmers. Let’s worry about Ukraine. Let’s worry about people overseas. Eight hundred bases we have around the world. Let’s don’t worry about eating. We can without eating.’ That’s what this Administration’s saying.
This forces us to look to supplemental appropriation packages to help our producers, if we’re not gonna do a Farm Bill, to renew their farm loans and plan for next year’s crops. If they don’t get help this year, we’re gonna have huge problems. They won’t be pocketing this money. If we come up with some money to help the farmers get along, they’ll just be planting another crop.
Without immediate action to assist producers, our nation’s agriculture industry may never, ever, make it back from the damage that we’re doing to them today. America has lost—listen to this—America has lost 150,000 farms and 25,000 farmers in our country over the last few years. What? 150,000 farms closed up. Why? They can’t make a profit. You’ve owned a farm for 100 years, you and your family. But you get to the point where you say, ‘you know, I’m not passing something down to our kids that really wanna farm, we’re not gonna put them in harm’s way. We’re gonna sell. We’re gonna get out of the business. And we’re gonna let somebody else worry about it. Let’s let the Federal Government worry about it.’ […]
We can’t afford any more losses to our farms. Our farmers are hurting. They’re hurting real bad. But have you heard anybody talk about it, no.
You’re gonna hear a lot of people complaining about it and there’s gonna be an uproar in the next few years when prices double and triple as what they are today because we’re not gonna have any food. And it’s gonna come from Brazil, it’s gonna come from China, it’s gonna come from Vietnam.
We are doing severe damage to the farmers across this country and nobody cares. I’ll continue to be the voice of our Southern agriculture producers in the Senate and ensure that we have a seat at the table on this Farm Bill upcoming. But as I just said a while ago, [even] if we do a Farm Bill today, we’re gonna lose at least half of our farmers in this country this year, this year if they don’t get some help.
Mr. President, I yield the floor.”
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, and HELP Committees.
China’s top financial regulators, in a move that went beyond market expectations, unveiled a potent combination of monetary easing measures on Tuesday, aimed at anchoring market confidence and underpinning economic recovery amid domestic and global headwinds, analysts said.
The forceful one-two punch, including cutting the reserve requirement ratio, key policy interest rates and existing mortgage loan interest rates, will foster a more enabling climate for the world’s second-largest economy to hit this year’s growth target, they added.
“Recent macroeconomic data pointing to a tepid recovery in domestic consumption and weak inflationary pressures have created space for policymakers to ramp up efforts to bolster the economy,” said Ming Ming, chief economist at CITIC Securities.
“The gradual release of the policy package will help shore up market sentiment, unleash pent-up consumer demand, and drive a pickup in prices, putting the economy on a more favorable growth trajectory,” he added.
Pan Gongsheng, governor of the People’s Bank of China, the nation’s central bank, said at a news conference on Tuesday that the reserve requirement ratio — the amount of cash that banks are required to have on hand — will be reduced by 0.5 percentage point in the near term, which will free up about 1 trillion yuan ($142.2 billion) for new lending.
This marks the second time that the central bank has lowered the RRR this year, after implementing a 0.5 percentage point reduction in February, indicating that Chinese policymakers are proactively tapping into the policy space provided by the US Federal Reserve’s interest rate cut last week, experts said.
Following the latest reduction, the average reserve ratio for the banking sector will drop to around 6.6 percent. This level still leaves considerable flexibility to further lower the RRR if needed, when compared with other major global economies, Pan said.
China’s central bank will not shy away from further RRR cuts of 0.25 to 0.5 percentage point this year, depending on the prevailing market liquidity conditions, Pan added.
The central bank also announced a reduction in its seven-day reverse repo rate — the short-term policy benchmark of interest rates — by 0.2 percentage point from the current 1.7 percent to 1.5 percent.
This move is expected to drive down the medium-term lending facility rate by around 0.3 percentage point, with the loan prime rates also projected to follow suit, declining by 0.2 to 0.25 percentage point, Pan added.
A new set of policies aimed at further stabilizing the real estate market was also unveiled at the news conference, including a 0.5 percentage point reduction in average existing mortgage rates and lowering the minimum down payment ratio from the current 25 percent to 15 percent on second homes, among others.
Guan Tao, global chief economist at BOCI China, said that Tuesday’s policy package was more proactive and comprehensive than expectations and indicated policymakers’ intention to deliver timely policy support, helping strengthen society’s confidence in achieving the economic growth target of about 5 percent for the year.
Guan said fiscal policy should synergize with accommodative monetary measures. Measures such as expanding this year’s government deficit to boost fiscal spending and optimizing the fiscal spending structure to improve people’s livelihoods are worth consideration, especially in light of households’ reluctance to consume and invest due to debt burdens.
China’s stock and foreign exchange markets reacted positively to the policy release, with the benchmark Shanghai Composite Index jumping 4.15 percent to Tuesday’s close at 2,863.13 points, the biggest rise in about four years.
Wang Qing, chief macroeconomic analyst at Golden Credit Rating International, said the policies will provide much-needed support to homeowners by alleviating their debt burden and boosting consumer spending.
Wang said the higher level of existing mortgage interest rates compared with new mortgages has triggered a notable wave of early loan repayments, posing a drag on household consumption.
According to a central bank report released in July, the average monthly early repayment volume reached 387 billion yuan from September to December last year, which translates to an annualized early mortgage repayment of around 4.6 trillion yuan.
While the mortgage rate cuts, on the other side, will have a tangible impact on bank earnings, the authorities are likely to take a balanced approach, such as orderly adjustments to deposit rates to ensure the banking sector’s resilience, Wang said.
Boosted by news of supportive measures addressing the benchmark interest rate, a share stabilization fund and new monetary policy tools to support bourses, the A-share market rallied strongly on Tuesday, with upward momentum expected to continue in anticipation of more long-term capital inflows, experts said.
Their comments were made on Tuesday when the benchmark Shanghai Composite Index closed up 4.15 percent, the largest single-day gain in over four years. With this, the SCI regained its 2800-point threshold to close at 2863.13 points. The Shenzhen Component Index jumped 4.36 percent while the tech-heavy ChiNext in Shenzhen, Guangdong province, ended 5.54 percent higher. The combined trading value on the Shanghai and Shenzhen bourses surged 76.3 percent from a day earlier to 971.3 billion yuan ($138.1 billion).
The stock market’s bullish rebound came amid a series of supportive measures announced during a news conference on Tuesday.
Pan Gongsheng, governor of the People’s Bank of China, the country’s central bank, announced a 50-basis-point cut for the reserve requirement ratio in the near term. This will free up about 1 trillion yuan of long-term capital inflow into the financial market, Pan said at the conference.
Meanwhile, the central bank will establish a swap program under which securities firms, asset managers and insurers can obtain liquidity from the central bank through collateralization of their financial assets such as bonds and stock exchange traded funds. The program, which serves as the first structural monetary policy tool introduced by the PBOC to support the capital market, will significantly enhance these financial companies’ ability to acquire funds and increase their share holdings, he said.
The funds obtained from the program can only be used to invest in the stock market. The first phase of the program is set at 500 billion yuan, with the scale open for expansion, Pan said.
The PBOC governor also said at the Tuesday conference that financial regulators are studying the possibility of establishing a stock market stabilization fund.
Wu Qing, chairman of the China Securities Regulatory Commission, the country’s top securities watchdog, said at the Tuesday briefing that they will come up with a guideline to introduce more medium to long-term funds into the capital market.
Fan Jituo, chief strategist at Cinda Securities, said that the supportive policies for the stock market have exceeded market expectations, which will usher in more innovative tools and even an easing cycle.
Chen Guo, chief strategist at China Securities, said that the supportive policies collectively announced by the country’s top financial regulators may indicate more significant policies.
The A-share market will see its risk appetite improved in the first place, thanks to the clear signals sent lately. Market liquidity will also improve as incremental capital inflow can be anticipated, Chen said.
Six measures to advance mergers and acquisitions as well as restructuring among A-share companies will be introduced. A guideline for listed companies’ market valuation management will be introduced and open for public opinions soon, said Wu.
The central bank will also create a special re-lending facility to guide banks to provide loans to listed companies and their major shareholders for buybacks and increasing shareholdings, Pan said.
Xu Fei, an analyst at Wanlian Securities, said the ecosystem of the Chinese capital market will further optimize amid regulators’ efforts to improve companies’ quality and investment value. More long-term capital will be introduced in such a scenario. Market confidence will also be boosted along with the number of supportive macroeconomic policies, he said.
China’s top private enterprises are ramping up their research and development expenditures, reflecting a shift toward innovation to become more competitive on the global stage, said government officials and industry experts.
According to a report released by the All-China Federation of Industry and Commerce on Monday, total 2023 R&D expenditures for the top 1,000 private firms reached 1.39 trillion yuan ($197.5 billion), up 4.78 percent year-on-year. They accounted for 41.88 percent of the nation’s overall R&D spending.
The manufacturing sector emerged as a major contributor, with total R&D expenditures surpassing 1 trillion yuan last year. The highest R&D investments were observed in the computer and electronics sector, which invested 318.47 billion yuan with an impressive average R&D intensity of 8.34 percent.
It was closely followed by the internet and related services sector at 245.07 billion yuan and the automotive industry at 142.56 billion yuan.
Top leadership officials emphasized earlier this year the need to deeply integrate technological innovation with industrial innovation to develop new quality productive forces, highlighting the importance of reinforcing the role of enterprises as key innovators.
Gao Yunlong, chairman of ACFIC, said: “Private enterprises are expected to lead technological innovation, drive revolutionary breakthroughs and increase R&D investments. They can also strengthen the deep integration of industry, academia and research institutions, and play a greater role in strengthening and supplementing key industrial chains, as well as in the transformation of technological achievements and self-reliance.”
Notably, China’s R&D efforts are increasingly narrowing the gap with other leading economies. Some 217 of the global top 1,000 R&D-invested firms are from China, with total R&D investments amounting to 1.27 trillion yuan.
The year-on-year growth rate of R&D expenditures for these top 1,000 private enterprises last year was 12.78 percent, surpassing the growth of 6.54 percent for the global top 1,000 and 7.68 percent for the European Union. The average R&D intensity for the top 1,000 private enterprises was 3.58 percent, 0.31 percentage points higher than that of the top 1,000 firms in the EU.
Xu Qin, Party secretary of Heilongjiang province, said that the province will implement more supportive policies for the development of the private economy to invigorate its growth.
“Efforts will also be made to create a top-tier business environment, ensuring comprehensive support for enterprises, enhancing gains for entrepreneurs and contributing to the overall revitalization of Northeast China,” Xu said.
China will scale up R&D expenditures by more than 7 percent annually during the 14th Five-Year Plan (2021-25) period. Consultancy McKinsey & Co said in a report that such a growth target will make China the world’s largest R&D spender.
Wang Peng, a senior researcher at the Beijing Academy of Social Sciences, said that amid a global economic slowdown, encouraging the private economy to increase R&D efforts is important.
“The Chinese economy will continue gathering momentum if the private sector, including smaller businesses, remains sound, given that many SMEs are being increasingly recognized for their role as leaders in new concepts and new business models,” Wang said.
Photo taken on Sept. 16, 2024 shows a flooded area in Nay Pyi Taw, Myanmar. [Photo/Str/Xinhua]
Severe floods in Myanmar have caused significant devastation with a death toll of 419 as of Tuesday morning, according to the State Administration Council.
Over 140,000 people were affected by the floods, which have devastated over 750,000 acres of paddy fields and killed over 100,000 animals.
Additionally, the floods have destroyed 253 religious buildings, 926 roads and bridges, lamp posts and communication towers.
In response, Myanmar authorities have allocated 30 billion kyats (about 14.2 million U.S. dollars) for rescue operations and rehabilitation efforts.
People fleeing from Lebanon are seen at the Jdeidat Yabous border crossing in the countryside of Damascus, Syria, on Sept. 24, 2024. [Photo/Xinhua]
Lebanese ministers announced on Tuesday measures to shelter 27,000 displaced persons from southern Lebanon and suspension of educational activities until the end of the week due to ongoing Israeli raids.
The 27,000 displaced were seeking refuge in 252 shelters, according to Lebanese Environment Minister Nasser Yassin.
Yassin said in a press conference for the Ministerial Emergency Committee that “the national operations room and the Higher Relief Commission have been activated to secure the basic needs of the displaced.”
For his part, Minister of Education and Higher Education Abbas Halabi suspended educational activities in the country until the end of this week while demanding that public schools be opened to receive the displaced.
He said that in current circumstances, the closure of educational and vocational institutions in the governorates of the south, Nabatieh, Bekaa, Baalbek-Hermel, and the southern suburbs will be extended until the end of this week. The suspension of classes in schools and universities in the governorates of Beirut, Mount Lebanon, and North will also be extended, the minister added.
Worries about food security and fuel shortages have prompted local citizens to stockpile food and fuel products, alarming officials about a potential rapid depletion of the country’s reserve stock.
In this regard, Minister of Economy and Trade Amin Salam called on the public to rationalize the storage of food and vital commodities.
“Let the goods be stored for a week or two or even a month and not more, to ensure that the rest of the citizens obtain their need for basic commodities under the current circumstances,” Salam said.
He noted that the current wheat stock in the local market is adequate for at least two months and assured the public that supplies are being consistently secured.
Fuel stations also witnessed a great demand in light of the escalation of Israeli raids, prompting Minister of Energy and Water Walid Fayyad to reassure citizens that “the necessary reserves of petroleum derivatives are available in the medium term.”
Hezbollah and the Israeli army have been exchanging fire across the Lebanon-Israel border since Oct. 8, 2023.
On Monday, Israel began its most extensive bombardment of Lebanon since 2006, resulting in more than 550 deaths, including civilians, and over 1,800 injuries across the country. The casualty tolls and the intensity of the attacks have caused panic among Lebanese people.
Photo taken on Sept. 24, 2024 shows a house damaged in a rocket attack from Lebanon, in Rosh Pinna, northern Israel. [Photo/JINI via Xinhua]
Israel’s army said on Tuesday night that Hezbollah had fired around 300 rockets and other projectiles into Israel amid the second day of Israel’s heaviest attacks on Lebanon since 2006.
An explosive drone fell in Atlit, a coastal town south of Haifa, northern Israel, marking the first time Hezbollah’s rocket fire has reached this region, said the Israel Defense Forces, adding that two additional drones were launched toward the area but were intercepted. The drones caused no casualties, according to Israel’s rescue services.
Most of the rockets were intercepted by Israel’s aerial defense systems, the army said.
Hezbollah confirmed the attack in a statement, saying its fighters launched “an aerial operation with a squadron of assault drones against the headquarters of Israel’s special naval task unit Shayetet 13 in the Atlit base, targeting the positions of its officers and soldiers and striking the targets precisely.”
In other cases, rockets or parts of interceptor missiles that fell to the ground sparked fires in the Mount Meron area of Upper Galilee. In Rosh Pina, a town in Upper Galilee, a residential home was hit and extensively damaged.
Hospitals in the affected areas reported treating about 23 people, but later statements from Israel’s Magen David Adom emergency health service indicated that those treated were suffering from panic, not physical injuries.
At nightfall, Israel launched a new wave of attacks in Lebanon. The Air Force “conducted a number of extensive strikes on dozens of terrorist targets belonging to Hezbollah in the Beqaa region and several other areas in southern Lebanon,” the military said.
During the day, Israeli warplanes continued the massive strikes, which, according to the military, dismantled “dozens” of infrastructures where weapons were stored and numerous launchers aimed at Israeli territory were located.
Also on Tuesday night, unnamed Lebanese military sources told Xinhua that Israeli warplanes carried out ten raids on towns in the Tyre area deep in southern Lebanon and raided Hezbollah sites in the Jezzine area, also in the south of Lebanon.
Amid the sharp escalation, the Israeli military conducted Tuesday an exercise simulating fighting inside Lebanon, according to the Israeli Defense Ministry. Defense Minister Yoav Gallant remarked that “the series of blows on Hezbollah’s command chain, operatives, and weapons were tough.” According to Gallant, Israel has destroyed “tens of thousands” of rockets, missiles, and launchers since Monday.
Answering questions in a press briefing on Monday night, Israeli military spokesman Daniel Hagari neither confirmed nor denied whether Israel plans a ground operation in Lebanon.
Israel began its most extensive bombardment of Lebanon since 2006 on Monday, resulting in more than 550 deaths, including civilians, and over 1,800 injuries across the country. The flare-up has raised concerns about the potential for a full-scale conflict between Israel and Hezbollah, with fears that other nations could also become involved.
UN Secretary-General Antonio Guterres (at the podium and on the screens) delivers a speech at the opening ceremony of the General Debate of the 79th session of the United Nations General Assembly (UNGA) at the UN headquarters in New York, on Sept. 24, 2024. [Photo/Xinhua]
The General Debate of the 79th session of the United Nations General Assembly (UNGA) began on Tuesday amid growing calls for more international cooperation to address challenges such as climate change, poverty and inequality, while tackling the fallout from ongoing conflicts and global health crises.
The session saw world leaders heading to New York to deliver their statements as they took part in high-level discussions on the existential threat of sea-level rise, accelerating progress in combating the growing threat of antimicrobial resistance, and driving forward the United Nation’s long-term goal of achieving global nuclear disarmament with a plenary meeting marking the International Day for the Total Elimination of Nuclear Weapons.
President of the 79th session of the UNGA, Philemon Yang, told the opening ceremony that “the General Debate remains one of the world’s most inclusive, representative and authoritative platforms for global reflection and collective action. This year, the urgency of our task cannot be overstated.”
He noted that countries are falling behind in the pursuit of the Sustainable Development Goals (SDGs). With just five years to go, less than 18 percent have been met. Meanwhile, the climate crisis is “no longer a distant threat” but “here now, ravaging ecosystems and dismantling the livelihoods of entire communities.”
Yang also addressed the various conflicts raging from the Middle East to Ukraine, and from Haiti to South Sudan. “I call for an immediate ceasefire in all these conflict settings,” he said.
UN Secretary-General Antonio Guterres opened the General Debate of the 79th session of the General Assembly, saying that the current state of the world is unsustainable, but working together can find solutions.
“That requires us to make sure the mechanisms of international problem-solving actually solve problems,” he said. “It is time for a just peace based on the UN Charter, international law and UN resolutions.”
The agenda
The 79th session of the UNGA opened on Sept. 10, and the first day of the high-level General Debate falls on Tuesday. The 79th session marks a crucial milestone in the global effort to accelerate progress towards the 17 SDGs, according to a UN press release.
While the overall state of SDGs globally remains of grave concern, the SDG Moment event on Tuesday demonstrates that dramatic progress is still possible between now and 2030. It will do so by highlighting inspiring examples of progress across the world and the role of just and inclusive transitions in accelerating SDG progress.
World leaders gathered to engage in the annual high-level general debate under the theme “Leaving no one behind: acting together for the advancement of peace, sustainable development and human dignity for present and future generations.” Heads of state and government and ministers will explore solutions to intertwined global challenges to advance peace, security, and sustainable development.
On Wednesday, the High-Level Meeting on Sea-Level Rise will convene global leaders, experts and stakeholders to address the urgent and escalating threat of rising sea levels. This meeting will focus on building common understanding, mobilizing political leadership and promoting multi-sectoral and multi-stakeholder collaboration and international cooperation towards the objective of “addressing the threats posed by sea-level rise.”
Participants will work towards developing comprehensive solutions and actionable commitments to combat sea-level rise, ensuring a resilient and sustainable future including for small island developing states and low-lying coastal areas, according to the United Nations.
On Thursday, the High-level Meeting on Antimicrobial Resistance (AMR) presents an opportunity for countries and stakeholders to renew efforts and accelerate progress in combating the growing threat of AMR. This meeting will serve as the foundation for executing policies and ensuring accountability for strengthening health systems against AMR.
“Building on the momentum of previous declarations and commitments, participants will focus on enhancing international cooperation, promoting the responsible use of antimicrobials, and advancing the development of new treatments to safeguard global health,” said the United Nations.
Also on Thursday, a high-level meeting will be held for International Day for the Total Elimination of Nuclear Weapons.
On Monday, the United Nations just concluded the highly anticipated two-day Summit of the Future, which underscored the urgent need for enhanced international cooperation to address pressing challenges such as climate change, poverty and inequality, while tackling the impacts of ongoing conflicts and global health crises.
Syrian air defenses intercepted multiple flying objects over the Mediterranean Sea near the province of Tartous on Tuesday night, according to the Syrian Observatory for Human Rights.
The Syrian air defenses managed to shoot down 13 “targets,” as military radars detected warplanes in Syrian airspace, said the observatory.
Missiles from Syrian air defense systems continued to be launched toward “targets” over the sea rather than on land, the Britain-based war monitor added, noting that it is still unclear whether the targets were missiles or drones.
There were no immediate reports of casualties or damage in Tartous, a strategic coastal province that hosts a Russian naval facility.
While there has been no official comment on the incident yet, pro-government Sham FM radio reported that Syrian air defense systems were intercepting an Israeli attack over Tartous.