China has ‘rich agenda’ for free trade negotiations in 2024 amid high-level opening-up

China is striving to complete negotiations on version 3.0 of the China-ASEAN Free Trade Area (FTA) in 2024 amid a "rich agenda" for FTA negotiations in a bid to further advance high-standard opening-up, Chinese vice minister of commerce Wang Shouwen told a press conference on Friday. 

China's active engagement in FTA talks reflects China's commitment to deepening economic cooperation and integration and will have a positive impact on both China and the world economy by promoting trade, investment, and regional economic integration, experts said.

The talks on version 3.0 of the China-ASEAN FTA are scheduled to take place in Hangzhou, East China's Zhejiang Province, next week, Wang said.

Additionally, China will also complete FTA negotiations with Honduras, complete FTA upgrade negotiations with Peru and continue to promote the joining of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA) this year, Wang said.

In November 2022, China and ASEAN jointly announced the official launch of the negotiations. The two sides agreed that the negotiations will cover fields including trade in goods, investment, and digital and green economy, so as to build a more inclusive, modern, comprehensive, and mutually beneficial China-ASEAN FTA.

"The upgrade of the China-ASEAN FTA caters to the mutual development needs of both China and ASEAN, and will contribute to further enhancing the bilateral trade volume," Zhou Shixin, a research fellow at Shanghai Institutes for International Studies, told the Global Times on Friday.

Bilateral trade between China and ASEAN reached 6.41 trillion yuan ($900 billion) in 2023, with ASEAN maintaining its position as China's largest trading partner for the fourth consecutive year. China has continued to be ASEAN's largest trading partner for multiple years.

Additionally, the upgrade of the China-ASEAN FTA is expected to drive the upgrades of the Regional Comprehensive Economic Partnership (RCEP) and lay a good foundation for China's joining of CPTPP and DEPA, Zhou said.

Wang believes China now has more mature conditionsfor joining the CPTPP, as it has been consistently making efforts to promote deep exchanges with CPTPP members and enhance pilot projects and experiments within its domestic free trade zones, aligning with high-level international standards. 

"We have full confidence and the capability of meeting the high standards set by the CPTPP," Wang said.

China will also continue to engage in free trade negotiations or upgrade negotiations with the Gulf Cooperation Council, New Zealand, South Korea, and Switzerland to further implement the high-standard free trade zone network, Wang added.

High-standard economic and trade rules, as well as new content such as the lifting of the zero tariff ratio for goods traded, the promotion of telecommunications and healthcare services opening-up, and the expansion of market access for digital products will be included in the new free trade negotiations, Wang said.

"The proactive moves demonstrate China's commitment to further opening its doors and injecting new vitality into the regional economy amid the slowdown in global economic recovery," Zhou said.

2024 is indeed a pivotal year for the enhancement of free trade agreements. China's increasing domestic competitiveness, coupled with the opportunities of the digital and green era, as well as the "decoupling" and supply chain disruptions imposed by the US and the West, call for renewed efforts to upgrade free trade agreements, Wang Yiwei, director of the Institute of International Affairs at the Renmin University of China, told the Global Times.

"It will not only drive China's economic growth but also contribute to open and inclusive economic globalization," Wang Yiwei added.

2023 saw the RCEP come into full effect and was a fruitful year for China to expand free trade agreements with other partners. 

"In 2023, we signed four new free trade agreements. As of today, we have signed 22 free trade agreements with 29 countries and regions, and trade with those countries and regions accounted for approximately one-third of China's total foreign trade volume," Wang said.

Chinese enterprises enjoyed import duty reductions of 2.36 billion yuan under the RCEP last year. At the same time, import enterprises from RCEP partner countries benefited from preferential treatment worth 4.05 billion yuan when importing products from China, which is a clear and mutually beneficial outcome for both sides, Wang said.

China's visa-free policy for Switzerland to promote bilateral business communication: SCCC president

China-Switzerland cooperation has bright prospects and China's visa-free policy for Switzerland will facilitate bilateral economic ties, said Felix Sutter, president of the Swiss-Chinese Chamber of Commerce (SCCC).

China's visa-free policy has been hailed by Swiss business communities. It allows Swiss entrepreneurs and professionals to serve the Chinese economy and clients in China better and faster, and it also reduces costs, Sutter said in a written interview with the Global Times. He noted that the visa-free policy shortens the lead time for travel to China and allows flexible itineraries.

"For example, during a planned visit to Southeast Asia, a businessperson can change travel plans at short notice and enter China without going through the visa application process," said Sutter.

China will apply a unilateral visa-free policy for Switzerland, and the Swiss side will provide more visa facilitation measures for Chinese citizens as well as Chinese enterprises investing in Switzerland, the two countries announced on January 15, 2024, according to the Xinhua News Agency.

In addition, China and Switzerland also announced on January 15 the completion of a joint feasibility study on upgrading their bilateral free trade agreement (FTA), an important stride toward negotiations and deeper economic cooperation.

The FTA was signed on July 6, 2013 and entered into force on July 1, 2014 after being ratified by both countries.

Sutter said that the FTA is considered a success, as it is the only FTA that China has signed with a continental European country.

The SCCC has been focusing on restarting economic communication between Switzerland and China in the past year.

"Since December 2022, the SCCC has hosted numerous government and business delegations from China to Switzerland. Facilitating interactions between Swiss and Chinese organizations, companies and entrepreneurs served to reopen dialogue and identify business opportunities and challenges," said Sutter.

The year 2025 marks the 75th anniversary of the establishment of diplomatic ties between China and Switzerland, and analysts said that the two countries will embrace more cooperation opportunities.

"With more than 1,000 Swiss companies operating in China, we see potential for more Chinese companies to set up operations to serve their European customer base and understand the needs of the European market," said Sutter. He added that industries with opportunities for increased cooperation between China and Switzerland include life sciences, renewable energy, cleantech, precision engineering and education.

Despite multiple sources of global headwinds including geopolitical tensions and a sluggish economic recovery, Sutter pointed out that Switzerland and China need to address issues including climate change, where the two countries can work together to find innovative and affordable solutions.

Home-made C919 fleet to serve Chinese Lunar New Year travel rush

Four home-made C919 aircraft from China Eastern Airlines will serve the upcoming Chinese Lunar New Year, as the 40-day travel peak which starts on Friday, China Eastern said on Wednesday. 

The four planes will fly the routes between Beijing and Shanghai, Shanghai and Chengdu in Southwest China's Sichuan Province. 

China Eastern welcomed its fourth C919 plane on January 2, which started flights from Beijing to Shanghai.

On May 28, 2023, China Eastern operated the maiden flight of the C919 and the plane has been flying the route from Shanghai and Chengdu.

China Eastern said in January that its C919 fleet has carried out 655 commercial flights, transporting a total of nearly 82,000 passengers since its maiden flight.

The fleet size for the coming travel rush is part of the plan that China Eastern has planned for the upcoming Chinese Lunar New Year travel rush. The carrier will fly 3,280 flights per day during the travel peak, a growth of 42 percent year on year.

Air China said on Tuesday that it plans to arrange 67,691 flights during the 40-day travel peak with an average of 1,693 flights per day, increasing by 32 percent compared with 2019, and rising 40.6 percent compared with 2023.

China is expected to record 9 billion passenger trips during the annual Spring Festival travel rush, the Ministry of Transport said last week. 

The Civil Aviation Administration of China predicted that the total number of passengers via air could hit 80 million in the 40-day travel rush or 2million per day on average, expecting to hit a record.

Global trade realignment an opportunity for closer China-ASEAN cooperation

There has been a lot of discussion about the rise or fall of China-US trade, but less attention has been paid to another important participant in global industry chains - Southeast Asia. A Bloomberg article said Monday that for the first time, China exported more to Southeast Asia in 2023 than to the US. If Bloomberg's report is true, the news can be seen as a new milestone for the realignment of global trade.

Chinese customs data showed that ASEAN emerged as China's largest export market in 2023, with an annual value reaching $523.7 billion. The US, which held the top spot in 2022, slid to third place in 2023 with $500.3 billion, down 13.1 percent from the previous year.

The realignment of global trade is the result of many factors, such as rising US trade protectionism, unilateral and anti-market suppression and economic bullying, which are threatening not only China but also the global economy. 

In a world undergoing drastic changes, both challenges and opportunities exist. Washington has been trying to squeeze China out of global supply chains through a series of approaches in the name of "de-risking," but trade data suggest things are going in the opposite direction of what people expected. China has integrated deeper into global supply chains, established an open and cooperative system, and further opened up its manufacturing sector to counter combined challenges. 

Research by economists showed that goods that were supposed to be processed in China and exported to the US are now subject to increasingly complex delivery routes: China now exports more high value-added intermediate products to Southeast Asia, India, Mexico and other countries for final assembly, and then re-exports them to the US. 

In the past, China imported core components and assembled them into final products for export. The volume was relatively high but the profits made by assembly lines were limited. Now, China has made itself an important exporter of intermediate products. China's exports to the US have declined, but as China's companies move up the industry value chain, they can earn more money.

In recent years, some manufacturers have been shifting parts of their assembly lines out of China to Southeast Asia and other regions, but they still import intermediate products from China. This fosters closer industry chain cooperation between China and those countries.

As for Southeast Asia and other regions, more imports mean more trade deficits. However, taking a closer look at their foreign trade structures, a noteworthy part is intermediate products. It brings opportunities for industrialization, rather than substitutes for manufacturing products in the local market.

However, some people in countries especially India hold a negative attitude toward Chinese-made products and trade deficits with China. With a zero-sum mentality, they may miss out on the opportunities created by supply chain restructuring. China and those countries enjoy strong complementarity in strengthening economic cooperation. We should seize the opportunity.

Although ASEAN has reportedly surpassed the US as China's largest export market, the US, at least in the short term, remains an important final consumer market, as some of China's exports to Southeast Asia will eventually be re-exported to the US. This reality reminds China and its trade partners to diversify their markets.

Amid a decline in external demand, companies doing businesses in China are focusing more on Chinese domestic consumer markets. Chinese authorities in 2023 issued 20 measures to boost domestic consumption, including support for expanding real estate and auto sales, underscoring the country's intensifying efforts to ensure a steady economic recovery. 

China has made itself an important final consumer market in the world. This will promote industry chain cooperation between China and Southeast Asia from another perspective.

2024 Blue Book of Henan’s Energy officially released

On January 13, the "ANNUAL REPORT ON HENAN'S ENERGY DEVELOPMENT (2024)" (2024 BLUE BOOK OF HENAN'S ENERGY), jointly compiled by State Grid Henan Economic Research Institute and Henan Academy of Social Sciences, was officially released. The book is the eighth annual report of the Blue Book series, with a total of 22 special reports on "Accelerating the Construction of New Type Energy System".

On the basis of maintaining the traditional sections of "Industry Development, Investigation and Analysis" in previous years, the 2024 Blue Book focuses on the implementation of the spirit of the Central Economic Work Conference and the National Energy Work Conference, and launches two characteristic sections: first, based on the mission of the industry, launches the new type energy system chapter, carrying out in-depth and systematic research and thinking on the construction of new type energy system, rural clean energy, pricing of energy big data products, carbon emission monitoring, and putting forward suggestions on accelerating the construction of new type energy system for long-term development of Henan energy. Second, focused on major deployment, launches the new type power system chapter, carrying out in-depth and systematic research on rural modern smart distribution network, new energy storage, electric vehicle charging facilities and flood control and disaster resistance capacity construction, and providing reasonable suggestions for the construction of the new type power system in Henan province.

The Blue Book, points out that in 2023, the provincial energy industry deeply implements the decisions and deployments of the CPC Central Committee and provincial government, Coordinates high-quality development and high-level security, realizes the "double improvement, double stability" of energy supply security and clean transformation, providing a strong energy guarantee for Chinese modernization in Henan practice. On energy security, through steady increase of coal production, full power production, and stable oil and gas production, the energy security capacity is continuously improved. Preliminary statistics show that the total energy production of the province in 2023 is about 110 million tons of standard coal. On transformation, the proportion of coal power installed capacity decreased to less than 50%, and the installed capacity of renewable energy power generation exceeded 67 million kW, surpassing coal power. The power generation of renewable energy reached nearly 100 billion KWH, up 21% year on year, accounting for about a quarter of the proportion of the total social electricity consumption. The year 2024 is a breakthrough year for the "Ten strategies" of Henan Province. Preliminary judgment shows that energy consumption in the province will steadily improve and grow steadily, and the overall energy supply and demand will remain stable and orderly.(Wang Dan, Deng Fangzhao)

Economy ends year on positive note despite complex, challenging environment

China's economy ended 2023 on a positive note, recording a year-on-year GDP growth of 5.2 percent and surpassing the set target. 

In December, with the effective implementation of various macroeconomic policies, the national economy maintained the stable recovery momentum, with most indicators rebounding or stabilizing, excluding the real estate sector.

Looking back to the quarterly performance, the first quarter growth surpassed expectations, marking a strong start. The second quarter witnessed a rebound in year-on-year growth, although there was a slight slowdown on a quarterly basis. In the second half of the year, policies were implemented with a concentrated effort to accelerate economic recovery.

The recovery for the whole year is characterized by varied levels of progress sometimes featuring twists and turns. It is not easy to maintain recovery momentum and achieve annual goals in the face of intensified external pressures and internal difficulties.

From an external perspective, the momentum of global economic recovery gradually slowed down in the fourth quarter. Developed countries such as the US, Europe, and the UK have essentially halted interest rate hikes but maintained relatively high interest rate levels. China still faces a complex and challenging external environment. In terms of US dollars, China's exports in the fourth quarter dropped by 1.3 percent year-on-year, indicating that external demand continues to be a drag on the growth.

From an internal perspective, the foundation of domestic demand in China has been further strengthened. Since the fourth quarter, China has continued to implement a comprehensive package of macroeconomic counter-cyclical policies, with increased fiscal support. 

Overall, household consumption is experiencing a weak recovery, but the foundation still needs to be consolidated. From January to December, fixed asset investment increased by 3.0 percent year-on-year, and retail sales of consumer goods increased by 7.2 percent year-on-year. Investment and consumption are important pillars supporting economic stabilization.

From a production perspective, year-on-year growth of industrial production rebounded in December, while two-year average growth has declined. The structure of industrial production continues to optimize, while the production of the service industry weakened year-on-year due to the high base effect. However, the two-year average growth of the service industry has strengthened.

From a consumption perspective, the year-on-year growth rate of retail sales of consumer goods in December declined due to the high base effect, but the month-on-month and two-year average growth rates have both rebounded. Overall, current household consumption is showing a weak recovery trend, and both household income and consumption willingness need to be boosted.

From an investment perspective, infrastructure investment and manufacturing investment have performed well, continuing to play a role in supporting economic growth. However, the real estate market is still in a phase of fluctuation and bottom-finding, with various indicators showing marginal decline. Private investment, excluding real estate development investment, is higher than the overall investment growth rate.

After the Central Economic Work Conference, government ministries and commissions have successively held their annual work conferences to implement the measures mapped out in the economic work conference and structure their work for the year. 

Local governments have also launched numerous projects at the beginning of the year to promote a good start for the economic work in 2024. The main focus of China's economic work in 2024 is to "consolidate the foundation and foster innovation." It is expected that the official target for economic growth will remain around 5 percent, and policy efforts will be increased accordingly to effectively address deflation expectations and push the actual growth rate closer to the potential growth level.

There are more successes than failures in China-US cooperation: American businessman Menendez

This year marks the 45th anniversary of the establishment of diplomatic relations between China and the US. Manuel C. Menendez, founder and CEO of MCM Group Holdings, was one of the earliest American businessmen to come to China. He facilitated the establishment of the first China-America joint venture. 

Over the last 45 years, Menendez has experienced the ups and downs of China-US relations and the expanding economic and trade cooperation between the two countries. Currently, the development of China-US relations is at a critical juncture. Regarding the future direction of China-US relations and how the two countries can strengthen cooperation, Global Times reporters Xie Wenting and Zhao Juecheng (GT) recently interviewed Menendez to gain his perspective on these and more pertinent questions.  

GT: On November 15, 2023, Chinese President Xi Jinping and US President Joe Biden held a meeting at the Filoli Estate in San Francisco, US. How do you view the significance of the meeting and its impact? 

Menendez:
 Without engagement and contact, misunderstandings can arise, leading to misjudgments and trouble for everyone involved. That is why the only way to avoid this is to continue the momentum we have now, especially with President Biden and President Xi meeting together. I am extremely excited and pleased that the two presidents were able to meet. I believe we are now on a better platform for stability. Stability is important. 

We had a number of very senior officials who came to China in 2023, including Secretary of State Antony Blinken, Treasury Secretary Janet Yellen, Commerce Secretary Gina Raimondo, and Senator Chuck Schumer who led a delegation of both Republican and Democratic senators. I think the buildup of the number of high-level meetings is critical at this important stage of US-China relations. It sounds simple, but the most important thing is continued talking, continued engagement, and finding common ground. That is because, in reality, on most things, there is a lot of common ground on which we share common views, whether it's climate change, health issues, or coordinating efforts for natural disasters. I believe these actions are very important for the two largest economies in the world.

But the engagement on what are red-line issues or sensitive issues takes time to roll up your sleeves and have a clear understanding. This applies not only to China and the US but to any country that has sensitive issues that need to be discussed. The most important thing about discussing these more sensitive or national security issues is to spend the time to talk about them on a granular level so that there are no misunderstandings. 

In terms of business, the business community always appreciates predictability and stability. I am glad that we are currently on this trajectory.

GT: What are your expectations for China-US relations in 2024?

Menendez:
 We have to keep it stable, so my hope and wish for the New Year is increased contact and stability. 

Will there be significant improvements? I think it will be challenging in 2024. As we enter the presidential season in the US, China will inevitably be part of the discussion. However, it is important to remember that political rhetoric does not always reflect reality.

The reality can be different from what is portrayed in the media and political rhetoric. The reality is that the two countries have done an unbelievably wonderful job over the last 45 years. There have been many companies from the US, in particular, those have entered the Chinese market and have done very well. And Chinese companies that have gone to the US have done a marvelous job there. So, there are a lot of actual benefits that have been witnessed when the number one and the number two economies of the world work together, because it not only helps the US and China, but also helped the world by uplifting the global economy when we work together.

So, I think that there are so many success stories versus the negatives of the not successful stories. There are more successes than failures in these countries, especially because of the US-China trade. 

China still remains the main anchor because there is one very important characteristic about China that should never be misunderstood: China is not only a world factory, but also a world market. This is due to the emergence of the middle class in China during my lifetime, which is driving consumption. Therefore, the growth of consumption in China is also what drives the US. The US is a consumer-driven country with a strong middle class, and the same phenomenon has occurred in China. 

My expectation in the bilateral relations is for better stability and predictability. After 2024, I am very optimistic that the world economy will adjust, as conflicts in certain regions, which I am praying, will be resolved, come to an end. This will allow us a return to a more normalized situation and enhanced relations in 2025.

GT: What efforts can be made to avoid "gray rhino" events in China-US relations in the coming year? 

Menendez:
 I believe that moving forward, it is crucial for us to gain a better understanding of the world we live in today. The world is a little bit different from how it was 40 years ago, with lots of geopolitical dynamics shifting. 

If you look at the global economy, the combined GDP of China and the US alone accounts for approximately 45 percent of the world's GDP, which is amazing for just two countries. Therefore, we must not only focus on the development of our own nations but also recognize our greater role and responsibility in ensuring that we address global issues correctly.

We have to find a way that makes both countries comfortable, ensures their voices and concerns are heard, establish a structured approach moving forward, and allows for shared participation on the global platform. Sharing platforms together is a complex issue because it not only requires the consideration of practical, business aspects, but also geopolitical aspects. However, misunderstandings sometimes arise when it comes to geopolitics. 

The only way I know of solving those things is through the continual frequency of discussions, not only at the highest level but also at the operational level of governments.

GT: In your opinion, what is the biggest misunderstanding that some Americans have about China?

Menendez:
 I think one of the common misunderstandings about China is that China is sometimes portrayed as an aggressive country. I've never felt nor seen that.

When I think of China being aggressive, I don't mean it from any other perspective other than being very aggressive in business. However, all countries are very aggressive in business. We all compete with each other, and with our companies and brands, to gain market share wherever it may be, whether it's a German, French, Italian, or American company. We are always competing aggressively.

But when it comes to aggressively expanding outside of China, I think there is a misconception that China will aggressively go after other regions of the world. I don't think that is the case. In my personal experience, China has adhered more to Confucian thinking of a benevolent society and not seeking to expand its footprint outside of China. If you look at Chinese history over the last 5,000 years, it is not even a part of it. 

Besides, China is known for being extremely friendly, particularly toward foreigners who come to visit. This aligns with the Confucian thinking that says when people come from afar, you should welcome them and be happy. China has consistently upheld this philosophy of welcoming foreigners, and I think that's still the case.

My motto is world trade creates world peace. World peace and world trade go hand in hand because when people work together, they are less likely to engage in conflict. I wish I could take everyone from the US to China so that they could see China. And I wish I could take everyone from China to the US because, at the people-to-people level, the people of both countries are very nice and good people.

The one higher purpose of the relationship we should never undervalue is a strong China and a strong US working together. This collaboration not only creates prosperity in both countries but also fosters prosperity in the world and promotes world peace.

GT: There is a growing voice in the US, calling for the so-called de-coupling or de-risking from China, especially in the high-tech arena. What's your take on it?

Menendez:
 I think that everything in high tech is not a matter of national security. You have to know where the line is. This is what I mean by engagement and talk. Every chip that is manufactured is not a high security or high national security chip as we use chips in various everyday appliances such as washing machines and cars. Almost every modern appliance, including basic ones, incorporates chips. Hence, as I mentioned before, engaging in dialogue and ensuring a clear understanding of the boundaries between our countries is extremely important.

We need to understand each other's sensitivities and have open discussions while maintaining mutual respect. We may not always agree on everything, but we should at least try to understand the reasons behind our disagreements. This way, we can find solutions to have a path forward.

Due to the COVID-19 pandemic, some companies have identified certain flaws in their product delivery to customers. As a result, companies, particularly in the US, have a responsibility to ensure efficient product delivery. Therefore, they have relocated parts of their supply chain. But I am yet to hear of any big-scale companies that have left the Chinese market. They continue to operate in China. They have partly moved some production, maybe to Vietnam or other parts of the world, and maybe a little bit to India, to enhance the resilience of the supply chain.

But China still remains the main anchor because there is one very important characteristic about China that should never be misunderstood: China is not only a world factory but also a world market. This is due to the emergence of the middle class in China during my lifetime, which is driving consumption. 

GT: The Chinese government recently announced a raft of measures to attract foreign investment. What are your opinions on these measures? What is your advice for China in terms of attracting foreign investment? 

Menendez:
 China has simplified the process of doing business. I have witnessed numerous improvements over the years. However, one aspect that China needs to address is effectively promoting and informing the world about its policies, so that other countries can understand the benefits. 

Success is the key to promoting more foreign direct investment (FDI), as people are more likely to be motivated when they hear about the positive outcomes resulting from specific policies. Real-life examples are the key to further strengthening FDI and making it even more robust than it currently is.

I think that there are areas that can be improved to make the business climate more conducive for investment. However, this is a process that takes time. Changes need to be made based on the current world and market conditions. I consider it an evolutionary process. 

In the early days, any form of development was acceptable as China aimed to attract foreign investment and build its own economy and infrastructure. The infrastructure development and the largest migration in human history in China have been a miracle. 

One of the great things that China has done, which is positive, is taking people out of absolute poverty. It has been amazing to witness nearly 800 million people coming out of absolute poverty, which is a great achievement. However, that is not the end goal. I always emphasize that getting out of absolute poverty is just the first step. The goal now is to improve people's lives and achieve common prosperity. I think China is working hard toward that. 

As China has risen up to this level, you have to give credit to the Chinese entrepreneurs, the Chinese ability to take a policy, and the ability to make it work step by step.

GT: You played a positive role in China's return to the global market in the late 1970s. You have also witnessed significant changes in the Chinese business market over past decades. In your opinion, what are the current advantages that China has to offer to foreign companies and investors?

Menendez:
 I think the most obvious change is what I mentioned earlier: China has transitioned from being just a world factory to becoming a world market. It now has a significant consumer population. Therefore, companies that have products and services can also sell them in China. This can be referred to as hitting a home run. The concept of a home run implies that if you can manufacture a product in China, you have a competitive advantage in the global market. This advantage stems from the fact that the best product, offering the best price and quality, ultimately emerges as the winner, not only in China but also worldwide.

Now, wherever it is, China has consistently produced the best products with the highest quality and at the most competitive prices, making them the ultimate winner in many categories. Take Apple, for example, with their iPhones and MacBooks manufactured in Dongguan by Foxconn. These products are then distributed worldwide, contributing to Apple's status as the number one company in terms of market capitalization. China has undoubtedly played a significant role in this achievement.

I think companies should consider the Chinese market as an opportunity to manufacture goods here. This does not necessarily mean shutting down high-level or advanced production in the US, but rather having some production in China to capitalize on the growing Chinese market. 

I believe there is plenty more room to grow in China. There are still hundreds of millions of people who have yet to move from their current position to the middle class. So, I think there is ample opportunity, what we call runway, in China. However, it is important to have knowledge about the market; where to enter and who to partner with. I like the philosophy of working in China with partners. I like Chinese partners, as they know their market and economy. It is always good to share in the economic equation. When both the China and US work together, both sides win and can achieve mutual success. If we are economically tied together, I believe it is a very powerful formula moving forward.

China witnessed the establishment of more than 48,000 new foreign enterprises from January to November 2023, which serves as one of the parameters indicating confidence in the Chinese market.

Mathematicians have finally discovered an elusive ‘einstein’ tile

A 13-sided shape known as “the hat” has mathematicians tipping their caps.

It’s the first true example of an “einstein,” a single shape that forms a special tiling of a plane: Like bathroom floor tile, it can cover an entire surface with no gaps or overlaps but only with a pattern that never repeats.

“Everybody is astonished and is delighted, both,” says mathematician Marjorie Senechal of Smith College in Northampton, Mass., who was not involved with the discovery. Mathematicians had been searching for such a shape for half a century. “It wasn’t even clear that such a thing could exist,” Senechal says.

Although the name “einstein” conjures up the iconic physicist, it comes from the German ein Stein, meaning “one stone,” referring to the single tile. The einstein sits in a weird purgatory between order and disorder. Though the tiles fit neatly together and can cover an infinite plane, they are aperiodic, meaning they can’t form a pattern that repeats.

With a periodic pattern, it’s possible to shift the tiles over and have them match up perfectly with their previous arrangement. An infinite checkerboard, for example, looks just the same if you slide the rows over by two. While it’s possible to arrange other single tiles in patterns that are not periodic, the hat is special because there’s no way it can create a periodic pattern.
Identified by David Smith, a nonprofessional mathematician who describes himself as an “imaginative tinkerer of shapes,” and reported in a paper posted online March 20 at arXiv.org, the hat is a polykite — a bunch of smaller kite shapes stuck together. That’s a type of shape that hadn’t been studied closely in the search for einsteins, says Chaim Goodman-Strauss of the National Museum of Mathematics in New York City, one of a group of trained mathematicians and computer scientists Smith teamed up with to study the hat.

It’s a surprisingly simple polygon. Before this work, if you’d asked what an einstein would look like, Goodman-Strauss says, “I would’ve drawn some crazy, squiggly, nasty thing.”

Mathematicians previously knew of nonrepeating tilings that involved multiple tiles of different shapes. In the 1970s, mathematician Roger Penrose discovered that just two different shapes formed a tiling that isn’t periodic (SN: 3/1/07). From there, “It was natural to wonder, could there be a single tile that does this?” says mathematician Casey Mann of the University of Washington Bothell, who was not involved with the research. That one has finally been found, “it’s huge.”
Other shapes have come close. Taylor-Socolar tiles are aperiodic, but they are a jumble of multiple disconnected pieces — not what most people think of as a single tile. “This is the first solution without asterisks,” says mathematician Michaël Rao of CNRS and École Normale Supérieure de Lyon in France.

Smith and colleagues proved that the tile was an einstein in two ways. One came from noticing that the hats arrange themselves into larger clusters, called metatiles. Those metatiles then arrange into even larger supertiles, and so on indefinitely, in a type of hierarchical structure that is common for tilings that aren’t periodic. This approach revealed that the hat tiling could fill an entire infinite plane, and that its pattern would not repeat.

The second proof relied on the fact that the hat is part of a continuum of shapes: By gradually changing the relative lengths of the sides of the hat, the mathematicians were able to form a family of tiles that can take on the same nonrepeating pattern. By considering the relative sizes and shapes of the tiles at the extremes of that family — one shaped like a chevron and the other reminiscent of a comet — the team was able to show that the hat couldn’t be arranged in a periodic pattern.
While the paper has yet to be peer-reviewed, the experts interviewed for this article agree that the result seems likely to hold up to detailed scrutiny.

Nonrepeating patterns can have real-world connections. Materials scientist Dan Shechtman won the 2011 Nobel Prize in chemistry for his discovery of quasicrystals, materials with atoms arranged in an orderly structure that never repeats, often described as analogs to Penrose’s tilings (SN: 10/5/11). The new aperiodic tile could spark further investigations in materials science, Senechal says.

Similar tilings have inspired artists, and the hat appears to be no exception. Already the tiling has been rendered artistically as smiling turtles and a jumble of shirts and hats. Presumably it’s only a matter of time before someone puts hat tiles on a hat.

The new aperiodic monotile discovered by Dave Smith, Joseph Myers, Craig Kaplan, and Chaim Goodman-Strauss, rendered as shirts and hats. The hat tiles are mirrored relative to the shirt tiles. pic.twitter.com/BwuLUPVT5a

— Robert Fathauer (@RobFathauerArt) March 21, 2023
And the hat isn’t the end. Researchers should continue the hunt for additional einsteins, says computer scientist Craig Kaplan of the University of Waterloo in Canada, a coauthor of the study. “Now that we’ve unlocked the door, hopefully other new shapes will come along.”

These transparent fish turn rainbow with white light. Now, we know why

The ghost catfish transforms from glassy to glam when white light passes through its mostly transparent body. Now, scientists know why.

The fish’s iridescence comes from light bending as it travels through microscopic striped structures in the animal’s muscles, researchers report March 13 in the Proceedings of the National Academy of Sciences.

Many fishes with iridescent flair have tiny crystals in their skin or scales that reflect light (SN: 4/6/21). But the ghost catfish (Kryptopterus vitreolus) and other transparent aquatic species, like eel larvae and icefishes, lack such structures to explain their luster.

The ghost catfish’s see-through body caught the eye of physicist Qibin Zhao when he was in an aquarium store. The roughly 5-centimeter-long freshwater fish is a popular ornamental species. “I was standing in front of the tank and staring at the fish,” says Zhao, of Shanghai Jiao Tong University. “And then I saw the iridescence.”

To investigate the fish’s colorful properties, Zhao and colleagues first examined the fish under different lighting conditions. The researchers determined its iridescence arose from light passing through the fish rather than reflecting off it. By using a white light laser to illuminate the animal’s muscles and skin separately, the team found that the muscles generated the multicolored sheen.
The researchers then characterized the muscles’ properties by analyzing how X-rays scatter when traveling through the tissue and by looking at it with an electron microscope. The team identified sarcomeres — regularly spaced, banded structures, each roughly 2 micrometers long, that run along the length of muscle fibers — as the source of the iridescence.

The sarcomeres’ repeating bands, comprised of proteins that overlap by varying amounts, bend white light in a way that separates and enhances its different wavelengths. The collective diffraction of light produces an array of colors. When the fish contracts and relaxes its muscles to swim, the sarcomeres slightly change in length, causing a shifting rainbow effect.
The purpose of the ghost catfish’s iridescence is a little unclear, says Heok Hee Ng, an independent ichthyologist in Singapore who was not involved in the new study. Ghost catfish live in murky water and seldom rely on sight, he says. But the iridescence might help them visually coordinate movements when traveling in schools, or it could help them blend in with shimmering water to hide from land predators, like some birds, he adds.

Regardless of function, Ng is excited to see scientists exploring the ghost catfish’s unusual characteristics.

“Fishes actually have quite a number of these interesting structures that serve them in many ways,” he says. “And a lot of these structures are very poorly studied.”

Ancient DNA suggests people settled South America in at least 3 waves

DNA from a 9,000-year-old baby tooth from Alaska, the oldest natural mummy in North America and remains of ancient Brazilians is helping researchers trace the steps of ancient people as they settled the Americas. Two new studies give a more detailed and complicated picture of the peopling of the Americas than ever before presented.

People from North America moved into South America in at least three migration waves, researchers report online November 8 in Cell. The first migrants, who reached South America by at least 11,000 years ago, were genetically related to a 12,600-year-old toddler from Montana known as Anzick-1 (SN: 3/22/14, p. 6). The child’s skeleton was found with artifacts from the Clovis people, who researchers used to think were the first people in the Americas, although that idea has fallen out of favor. Scientists also previously thought these were the only ancient migrants to South America.
But DNA analysis of samples from 49 ancient people suggests a second wave of settlers replaced the Clovis group in South America about 9,000 years ago. And a third group related to ancient people from California’s Channel Islands spread over the Central Andes about 4,200 years ago, geneticist Nathan Nakatsuka of Harvard University and colleagues found.
People who settled the Americas were also much more genetically diverse than previously thought. At least one group of ancient Brazilians shared DNA with modern indigenous Australians, a different group of researchers reports online November 8 in Science.
Early Americans moved into prehistoric South America in at least three migratory waves, a study proposes. Ancestral people who crossed from Siberia into Alaska first gave rise to groups that settled North America (gray arrows). The first wave of North Americans (blue) were related to Clovis people, represented by a 12,600-year-old toddler from Montana called Anzick-1. They moved into South America at least 11,000 years ago, followed by a second wave (green) whose descendants contributed most of the indigenous ancestry among South Americans today. A third migration wave (yellow) from a group that lived near California’s Channel Island moved into the Central Andes about 4,200 years ago. Dotted areas indicate that people there today still have that genetic ancestry.
Genetically related, but distinct groups of people came into the Americas and spread quickly and unevenly across the continents, says Eske Willerslev, a geneticist at the Natural History Museum of Denmark in Copenhagen and a coauthor of the Science study. “People were spreading like a fire across the landscape and very quickly adapted to the different environments they were encountering.”

Both studies offer details that help fill out an oversimplified narrative of the prehistoric Americas, says Jennifer Raff, an anthropological geneticist at the University of Kansas in Lawrence who was not involved in the work. “We’re learning some interesting, surprising things,” she says.

For instance, Willerslev’s group did detailed DNA analysis of 15 ancient Americans different from those analyzed by Nakatsuka and colleagues. A tooth from Trail Creek in Alaska was from a baby related to a group called the ancient Beringians, who occupied the temporary land mass between Alaska and Siberia called Beringia. Sometimes called the Bering land bridge, the land mass was above water before the glaciers receded at the end of the last ice age. The ancient Beringians stayed on the land bridge and were genetically distinct from the people who later gave rise to Native Americans, Willerslev and colleagues found.

The link between Australia and ancient Amazonians also hints that several genetically distinct groups may have come across Beringia into the Americas.

The Australian signature was first found in modern-day indigenous South Americans by Pontus Skoglund and colleagues (SN: 8/22/15, p. 6). No one was sure why indigenous Australians and South Americans shared DNA since the groups didn’t have any recent contact. One possibility, says Skoglund, a geneticist at the Francis Crick Institute in London and a coauthor of the Cell paper, was that the signature was very old and inherited from long-lost ancestors of both groups.

So Skoglund, Nakatsuka and colleagues tested DNA from a group of ancient Brazilians, but didn’t find the signature. Willerslev’s group, however, examined DNA from 10,400-year-old remains from Lagoa Santa, Brazil, and found the signature, supporting the idea that modern people could have inherited it from much older groups. And Skoglund is thrilled. “It’s amazing to see it confirmed,” he says.

How that genetic signature got to Brazil in the first place is still a mystery, though. Researchers don’t think early Australians paddled across the Pacific Ocean to South America. “None of us really think there was some sort of Pacific migration going on here,” Skoglund says.

That leaves an overland route through Beringia. There’s only one problem: Researchers didn’t find the Australian signature in any of the ancient remains tested from North or Central America. And no modern-day indigenous North or Central Americans tested have the signature either.

Still, Raff thinks it likely that an ancestral group of people from Asia split off into two groups, with one heading to Australia and the other crossing the land bridge into the Americas. The group that entered the Americas didn’t leave living descendants in the north. Or, because not many ancient remains have been studied, it’s possible that scientists have just missed finding evidence of this particular migration.

If Raff is right, that could mean that multiple groups of genetically distinct people made the Berigian crossing, or that one group crossed but was far more genetically diverse than researchers have realized.

The studies may also finally help lay to rest a persistent idea that some ancient remains in the Americas are not related to Native Americans today.

The Lagoa Santans from Brazil and a 10,700-year-old mummy from a place called Spirit Cave in Nevada had been grouped as “Paleoamericans” because they both had narrow skulls with low faces and protruding jaw lines, different from other Native American skull shapes. Some researchers have suggested that Paleoamericans — including the so-called Kennewick Man, whose 8,500-year-old remains were found in the state of Washington (SN: 12/26/15, p. 30) — weren’t Native Americans, but a separate group that didn’t have modern descendants.

But previous studies of Paleoamericans and Willerslev’s analysis of the Spirit Cave mummy’s DNA provide evidence that, despite their skull shapes, the Paleoamericans were not different from other Native Americans of their time. And the ancient people are more closely related to present-day Native Americans than any other group.

Willerslev presented the results about the Spirit Cave mummy to the Fallon Paiute-Shoshone tribe when the data became available. Based on the genetic results, the tribe was able to claim the mummy as an ancestor and rebury the remains.