Xiconomics in Practice: Under Xi's leadership, China moves swiftly to help private sector tackle challenges, achieve sound devt

Editor's Note:

Since 2012, China has witnessed an extraordinary economic transition, with historic achievements in all aspects of the economy from its size to quality. Such an unparalleled feat does not just happen, especially during a tumultuous period in the global geo-economic landscape and a tough phase in China's economic transformation and upgrading process. It was Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era that guided the country in overcoming various risks and challenges, and in keeping the China economic miracle alive.

As China embarked on the quest to become a great modern socialist country amid global changes unseen in a century, Xi's economic thought has been and will continue to be the guiding principle for development in China for years to come, and have great significance for the world. What is Xi's economic thought? What does it mean for China and the world? To answer these questions, the Global Times has launched this special coverage on Xi's major economic speeches and policies, and how they are put into practice to boost development in China and around the world.

In China's economic policymaking, policymakers and economists often use a rather apt term to describe the integral role the private sector plays in the country's social and economic development: "56789." This refers to private firms' contribution of more than 50 percent to national tax revenue, more than 60 percent to the national GDP, more than 70 percent to technological innovation achievements, more than 80 percent to urban employment, and 90 percent to the total number of enterprises in China.

More than describing private firms' enormous contributions to China's overall development, the phrase also lays bare the weight of the private firms in China's economic policymaking. And yet, whenever private firms, or the Chinese economy, encounter challenges, some at home and abroad levy obsolete claims against China's policy for the private sector. Some foreign media sources describe normal industrial regulation as "crackdowns," while others seek to paint a dire outlook for Chinese private firms. 

Evidently, this has, to some extent, led to negative sentiment among some private firms, as private fixed-asset investment shrank by 0.2 percent year-on-year in the first half of 2023, with a 0.6-percent contraction in June alone, according to official data. 

This further fueled pessimism toward Chinese private firms and even the Chinese economy as a whole. The IMF said last month that China's economy was slowing due to weaker private investment. 

Are Chinese policymakers paying less attention to private firms, or engaging in "arbitrary crackdowns?" Are private firms facing an increasingly grim outlook in China?

After conducting interviews with more than a dozen Chinese private firms, entrepreneurs, and experts, the Global Times found that, while challenges remain, the private sector remains overwhelmingly confident in operation and future growth, pointing to increasing support from policymakers and China's overall economic prospects. Personal care and support for the private sector from President Xi Jinping have become a source of confidence for the country's vast private sector. 

Support from top leader

Xi, also general secretary of the Communist Party of China (CPC) Central Committee, has, at important meetings and inspection tours around the country, commended the crucial contributions of the private sector to China's social and economic development and voiced unwavering support for the high-quality development of private firms.

"The CPC Central Committee has always considered private enterprises and private entrepreneurs as being in our ranks," Xi said in March, while visiting national political advisors from the China National Democratic Construction Association and the All-China Federation of Industry and Commerce, who were in attendance at the first session of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC).

Wang Yu, a member of the National Committee of the CPPCC and chairman of Spring Airlines, was among the national political advisors who were in attendance when Xi visited. "I am very touched!" Wang said at the time, noting that Xi's remarks helped "eliminate any worry among the vast number of private entrepreneurs and set our minds at ease, and greatly boosted our confidence in continuing to overcome difficulties."

In a recent interview, Wang said that a slew of recent policy measures for private firms further demonstrated Xi and the CPC Central Committee's unwavering support for the private sector. "Although China's economy is stabilizing and improving, the external situation is complicated and severe, and it still faces the huge test of 'triple pressures.' Private enterprises, especially small and medium-sized ones, have been more affected and impacted. At such a time of difficulty and confusion, the Party and the government have provided firm support and clear guidance," Wang told the Global Times. 

On July 19, the CPC Central Committee and the State Council released a guideline on boosting the growth of the private economy, vowing to improve the business environment, enhance policy support, and strengthen the legal guarantee for the development of the private economy. Containing 31 measures, the guideline addressed major challenges faced by the private sector. 

On July 24, Xi presided over a meeting of the Political Bureau of the CPC Central Committee to analyze economic situation and make arrangements for work in the second half of the year. The meeting called for policies and measures to promote private investment and provide private enterprises with an enabling environment. It also stressed upholding the principle of unswerving consolidation and development of the public sector and unswerving encouragement, support, and guidance of the development of the private sector, or "the two unwaverings," which is also a key aspect of Xi's economic thought. 

"A series of recent weighty documents will not only strengthen the importance attached to and support for the private economy, but will also provide a stronger policy guarantee for the development of the private economy in the new era through a series of new measures that are normalized and based on the rule of law, and will further stabilize expectations and boost confidence," Li Jin, chief researcher at the China Enterprise Research Institute in Beijing, told the Global Times. 

Efforts to tackle challenges

Highlighting the ultra-efficiency of policymaking and execution unique to China's system, and following the remarks and policy guidelines from the top leadership, various ministries have, in recent days, issued a slew of measures to help private firms tackle major challenges and ensure steady, sound development of the private economy. 

Last week, eight Chinese ministries issued 28 measures to support the private sector, vowing to provide fair access for private firms to participate in major national projects and technological undertakings, increasing financial and land support, and strengthening the legal protection of the private firms. 

On Sunday, the State Taxation Administration announced 28 measures to facilitate tax payments and promote the development of the private sector. 

The measures have been well received by private entrepreneurs around the country, who described them as "timely rain" that will help them address major challenges they are facing in a targeted manner. 

Chen Xu, chairman of the SENKEN Group, a police appliances manufacturing company in Wenzhou, East China's Zhejiang Province, said that the company faces relatively big burdens in areas such as tax, research and development (R&D) investment, and rising labor costs, and recently implemented measures address such challenges. 

"In particular, measures aimed at providing fair market access for private firms is very helpful for us," Chen told the Global Times, adding that other measures to help protect intellectual property are also very important to the firm, as it spends more than 30 million yuan on R&D each year. 

Wang Shaoshao, founder of Ouhua, a small business in Zhejiang that focuses on flowers and related cultural products, said that recent policy measures supporting the land use of private firms greatly help the company, as it seeks to rent land for business activities.

Cai Qinliang, head of a company specializing in Christmas decorations manufacture in Yiwu, Zhejiang, said that exports orders are gradually returning to pre-pandemic levels and other challenges such as surging shipping costs are easing thanks to increased policy support. 

"From production to shipment and customs, the policies issued by the government are very conducive to the development of the enterprise, which can ensure that we can clear customs and ship out goods as soon as possible," Cai told the Global Times, noting that recent measures aimed at cutting processing time for tax rebates to less than six working days and extending loans for small businesses, in particular, will help ease firms' financial burdens.

Zhejiang is one of the largest private business hubs in China, with the private sector enterprises accounting for over 70 percent of its economic activity. Zhejiang plays a crucial role in leading national efforts to boost the confidence of private firms, analysts said.

Upbeat on future prospect

Contrary to the rather dark picture painted by certain foreign media outlets, private entrepreneurs expressed confidence in their future outlook, thanks to firm support from the top leadership and concrete measures that help address challenges they face. Moreover, there are emerging signs that point to the resilience of the private sector in face of challenges. 

In the first seven months of 2023, exports and imports by the private companies totaled 12.46 trillion yuan, up 6.7 percent year-on-year, becoming a bright spot in China's overall trade in the face of downward pressure, official data showed on Tuesday. This growth rate is significantly higher than the 0.4 percent year-on-year growth rate in China's foreign trade registered for the same period in 2022. Notably, the share of private firms' exports and imports in the country's total foreign trade rose to 52.9 percent.

"In fact, the production and order situation of our company in 2022 has recovered to about 90 percent of the pre-pandemic level, and it is still gradually improving this year and expected to basically return to the pre-pandemic level," Cai with the Christmas decorations manufacturing firm said, also adding, "with strong policy support, we are quite confident in the future."

Chen, chairman of SENKEN, said that despite challenges, the company is moving along steadily with its five-year plan for a listing on the stock market by 2024. It is also actively expanding its overseas market, even after having exported products to more than 60 countries and regions. "The hope is that our brand can be competitive and influential overseas," he said.

And for the private sector, the country's firm support is for long term, rather than a short-term boost measure. "The '56789' feature of the private economy has not changed, and private firms are inseparable from the Chinese economy," Li said, adding that the private sector plays an increasingly crucial role in the country's pursuit of high-quality development and ultimate Chinese modernization. 

More forms of long-term policy support are expected for private firms, as Xi put it in March, to boost their confidence and unburden them of their worries, so that they can ambitiously pursue development.

GT investigates: US scapegoats China for fentanyl crisis but illness rooted in decades of painkiller abuse, FDA-pharmacy collusion

The US is plagued with a drug abuse problem more acute than any other countries as 12 percent of global drug users come from the North American country, two times higher than the proportion of its population. 

Provisional data indicates that nearly 110,000 Americans died of drug overdoses in 2022, the highest of all time, and more than two-thirds of the deaths involved the powerful synthetic opioid fentanyl, as per US Centers for Disease Control and Prevention. 

Fentanyl-related deaths among children increased more than 30-fold between 2013 and 2021, the Associated Press reported.

US Commerce Secretary Gina Raimondo, when visiting China in late August, claimed that US hopes to cooperate with China to tackle the rapidly increasing rates of fentanyl overdoses. However, the country simultaneously keeps scapegoating China on the issue, imposing sanctions and filing criminal charges against Chinese enterprises and individuals. 

Through an investigation into the US' opioid crisis which reveals the country's legislative and law enforcement failures over the decades, the Global Times found that the US is disinclined to find a radical cure, while scapegoating China as a conduit for mounting anger in American society. All this serves the US' strategic rivalry with China. 

Painkiller becomes source of pain

There is nothing new under the sun, and the US' fentanyl crisis is a continuation of its forbearer Oxycodone, a strong, semi-synthetic opioid used to treat moderate to severe pain. 

The Netflix TV drama Painkiller released in 2023, adapted from a book published in 2003, revealed how the pharmaceutical company Purdue Pharma colluded with US medicinal regulators and developed aggressive marketing tactics to promote its brand name product OxyContin, an extended-release form of Oxycodone, as less likely to cause addiction, raking in tens of millions of dollars. 

The US Food and Drug Administration (FDA), charged with the responsibility of prescription drug use regulation, gave OxyContin the green light in 1995 even though neither long-term studies nor assessments of its addictive capabilities had been thoroughly conducted.  

Two principal FDA reviewers who originally approved Purdue's application both took positions at the company after leaving the agency. In the following two decades, more FDA staffers involved in opioid approvals left the FDA to work for opioid makers, according to the American Medical Association Journal of Ethics. 

Purdue offered kickbacks, paid lecturers, and organized free seminar vacations to doctors to incentivize them to prescribe OxyContin, leading to a tenfold increase in prescriptions for less serious pain, from about 670,000 in 1997 to about 6.2 million in 2002. 

As Purdue earned billions of dollars from oxycodone sales, other drug companies took note; when the numerous unnecessary prescriptions were given to chronic pain patients, addiction and overdose deaths soared. 

The US' healthcare system also contributed - "Most insurance, especially for poor people, won't pay for anything but a pill," said Judith Feinberg, a professor at West Virginia University with expertise in infectious diseases associated with drug injection. 

The US Department of Health and Human Services estimated that about 11 million people in the US consume oxycodone in a non-medical way annually. 

Although Purdue was ultimately brought to justice, addicts are not redeemed. The large, ever expanding group of drug dependence, without proper social support and intervention, easily became the victims of new, more powerful drugs - fentanyl, a synthetic opioid which is also FDA-approved and up to 50 and 100 times stronger than heroine and morphine respectively. 

Fentanyl, the cheaper to make yet more lethal drug and its close cousins became the biggest drug-related killers in the US in 2016, the Associated Press reported. 

The media has reported on how drug users addicted to other substances unknowingly ingest fentanyl, as local dealers sell "traditional" products like cocaine "cut" with fentanyl, or pills containing fentanyl that are "advertised as legitimate prescription drugs." 

Incapable legislation, enforcement

With around 4 percent of the world's population, the US consumes 80 percent of the world's opioids. 

Why is the US? 

The US' drug problem, including the current fentanyl abuse crisis, is deeply rooted in the country's lobbying political structure and ideology, said Zhang Yifei, an associate research fellow at the Institute of American Studies under the Chinese Academy of Social Sciences.

The colossal profits bundle pharmaceutical companies with the FDA, sponsored politicians, academic groups, and the media, making the fentanyl crisis a predictable tragedy in the US that has enriched a few at the expense of many lives lost, Zhang said.

Academic institutions provide "scientific proof," media and think tanks propagate said proof, and drug makers lobby the government - this is a very complete and mature chain, Zhang elaborated, "They have various ways to exchange rights and interests through the 'revolving door' system."  

Zhang also pointed to "the pan-liberalism trend in the US, which emphasizes the absolute freedom of individuals." 

US governments, be they federal or state, are incapable of exercising effective regulation on many issues, although some of them, like drugs and guns, have endangered the public, Zhang said. 

When the public demands for freedom of marijuana use, governments and drug companies "hear" these calls and legalize the drug, milking profits from sales.  Even in states where marijuana remains illegal, its use is prevalent and law enforcement efforts to curb use are almost nonexistent. 

A Chinese national who used to live in North Carolina, told the Global Times that it is common to see people "getting high" in public in broad daylight when the drug is illegal.  

In the same way, only until the fentanyl crisis becomes so critical that the public demands for action to be taken, will the government finally act. The first fentanyl-related act passed in Congress in 2017, four years after lawmakers receiving alert on the drug. 

When actions are finally taken, they cannot avoid the trap of US' political wrestling. 

Lawmakers, during the US' 2023 legislative session, introduced over 600 bills related to fentanyl. However, in a deeply divided country, many of the fentanyl crime laws are notable for attracting bipartisan support, the New York Times reported in June. When Republican-controlled House reviewed a bill on fentanyl trafficking in May, 132 of the 133 vetoes came from Democrats. 

Another incongruous approach is the use of "safer" supervised consumption services (SCS) through which people can use pre-obtained drugs "safety" with the support of trained personnel. Funded by public money, it is hard to say whether such facilities can curb overdoses more than treating those with an addiction, not to mention such "legal sites" can mislead youth to believe addiction and drug use are nothing to worry. 

Zeng Lidu, a grassroots narcotic control officer in Central China's Hunan Province, told the Global Times that the US approach of control sounds "odd" in China, which, as one of the countries with the most effective drug control, closely monitors the maker rather than potential user. 

"Fentanyl has variable structures, making it more difficult than the traditional drugs to crack down on," Zeng told the Global Times. "In our district, only a few chemical plants and hospitals are allowed the use of fentanyl under close supervision. We trace and regulate every step in their use, transportation, and storage of fentanyl."

Experts told the Global Times that many fentanyl precursors are widely used in the chemical industry. China, as a chemical giant, does not have a fentanyl abuse problem at home, which says a lot about the root cause of the American drug disease. 

Not cooperation but scapegoating

Out of humanitarianism, China is willing to cooperate with the US in tackling the proliferation of fentanyl and has established a cooperation mechanism with the US on the issue. 

China scheduled and controlled all fentanyl-related substance by class in 2019 - the first country to do so in the world, while the US itself is yet to do the same. China formulated three legal documents to support the filing, prosecution, conviction, and sentencing of offenses involving these substances. To reinforce fentanyl testing and monitoring, five sub-centers of the National Drug Laboratory have been established across the country.

But the US in 2020 unilaterally and arbitrarily imposed sanctions on the institute of forensic science under China's Ministry of Public Security and National Drug Laboratory, severely jeopardizing related cooperation. 

A new vilification of China popular in the US is that Chinese firms sell commonly used chemicals to a third country, such as Mexico, where fentanyl is manufactured and later sold to the US. Citing this, the US has sanctioned Chinese companies, even including tablet press machine makers. 

Analysts stressed the "know your customer" practice that some in the US have been asking about far exceeds UN obligations. According to international practices, it is up to the importing country to ensure that imported goods are not used for illegal purposes, not the exporter. China has no sovereign right over a third country, and Chinese companies are not capable of verifying all buyers of its product. 

Zhang Yifei said scapegoating China on fentanyl is an easy and convenient approach for the US government to unleash domestic anger against ineffective drug control. 

Through distorted coverage on the issue, domestic media outlets successfully sell "China responsible" narrative to Americans at home. By repeatedly hyping the narrative at international occasions, the US also adds fentanyl into its recipe cooking "China threat." 

In this sense, fentanyl is essentially same to long-term smear campaign against China on many topics including human rights in Xinjiang region, Zhang said. 

As the presidential elections approach, blaming China for its domestic social handicaps as a political tactic sounds ridiculous, but quite a number of US politicians and voters buy this logic, Zhang noted. As the US' domestic political infighting escalates, chance of cooperation on this area which the US is in urgent need of, may narrow even further. 

Indonesia: Business forum and Indonesia Night held in Beijing

The Indonesia-China Business Forum and Indonesia Night were successfully held in Beijing to promote Indonesian culture and seek economic cooperation between the two countries.

A total of 250 people from the Chinese business community and various business sectors in Indonesia attended the event. 

Indonesian Ambassador to China Djauhari Oratmangun presided over the forum and stated that on the occasion of the 10th anniversary of the establishment of a comprehensive strategic partnership between Indonesia and China this year, the business forum has built a platform for potential cooperation between the two countries.

During the event, China and Indonesia signed a memorandum of understanding on strengthening mutual cooperation.

In order to promote Indonesian culture and traditional textile fabrics (Batik), more than 200 entrepreneurs, scholars, and officials from China, Indonesia, and other countries, as well as media professionals, attended the banquet. 

In his speech, Oratmangun noted that, "this is the first Indonesian night to be held in China since the start of the epidemic. This Indonesian night will showcase Indonesia's rich and colorful culture, music, traditional dance, coffee, and traditional textile fabrics."

The governor of the Bank Indonesian also presented traditional Indonesian clothing to 16 individuals who have contributed to the promotion of relations between Indonesia and China, including the Indonesian Ambassador to China and his wife, as well as the Indonesian Consul General in Guangzhou.

Australia needs to stay vigilant about 'carrots' the US offers: scholar

Editor's Note:

It seems that the frosty China-Australia relations have started to thaw faster. After three years, the bilateral high-level dialogue has resumed and Australian Prime Minister Anthony Albanese has announced a visit to China later this year. However, the relationship between the two countries is still clouded by several factors, Washington's constant pursuit of containing China and the security pact AUKUS, announced two years ago this week, among others. In a conversation with Global Times (GT) reporter Xia Wenxin, Joseph Camilleri (Camilleri), Emeritus Professor at La Trobe University in Melbourne and a Fellow of the Australian Academy of Social Sciences, shared his views on issues including China-Australia ties and the development of AUKUS.

GT: On September 15, 2021, the US, Australia and the UK announced a new security pact called AUKUS. After the establishment of this partnership, you commented that the agreement was "a story of recklessness and delusion." Now two years later, how do you see the development of AUKUS?

Camilleri: AUKUS has affected Australia's situation, and is a source of tension. What is unfortunate about AUKUS, in my view, is the impact it has on Australia. Much of this is about future "defense" planning. There are various forms of military cooperation between the US and Australia which have become closer and closer. AUKUS has simply given them another boost.

I called it a story of "recklessness and delusion" because it places Australian assets, resources and the country as a whole in a military relationship with the US, over which it has only limited control. And this tends to exacerbate its relations with other countries, China, of course, but also many other countries, especially in Southeast Asia. I am quite concerned about what this might mean for the future - in particular, whether it might lead to some kind of arms race in the Asia-Pacific region.

GT: Has AUKUS become an obstacle to China-Australia relations? How will this partnership affect the development of the relationship in the future?

Camilleri: It's just one more obstacle on top of the other obstacles. To find out what lies behind AUKUS and much else that goes hand in hand with the Australia-US military alliance, China, its people and its government cannot but ask the following questions: Are these arrangements aimed at China? What is the purpose of these arrangements? Why is the US so keen to have these kinds of provocative security relationships in the Asia-Pacific?

The US is keen to maintain its dominance in the Asia-Pacific region, where it has projected military far beyond its boundaries virtually unchallenged since the end of World War II. It is concerned that China's rise may pose a threat to its dominant position.

What the US wants to do in Asia-Pacific is to build as many security relationships as it can and make its military planning and weapons systems as closely interconnected as possible with the military establishments of its allies and partners. It sees this strategy as crucial to bolstering its position in the Asia-Pacific region. 

The US is presently intent on constructing an overwhelming military presence in both the Indian and Pacific Oceans. AUKUS is but one prong in this strategy. 

That is the problem we're facing: We have a major power that has been since World War II a superpower and the dominant power in the world, and it wants to preserve its dominance at all costs. But there are other countries, most notable China, that are rising and are committed to notions of multipolarity. Here you have a dangerous tension. And Australia, unfortunately, has been caught in the middle of these conflicting views as to what the future should look like.


GT: While Pillar 1 seems to face various difficulties, AUKUS has announced an ambitious Pillar 2 with the hope that more countries will join. What do you think is the motive of AUKUS countries behind such a move? And how likely is it that more countries will participate in the program in the future?

Camilleri: The intention of Pillar 2 has more to do with how these three countries - Australia, the US and the UK - will extend their cooperation beyond the nuclear power submarines and whether they will involve other types of defense capabilities, including artificial intelligence, quantum technologies, among others. That's one part of Pillar 2, one part of expanding the strategic military relationship. 

The other part is to bring other US allies into practical forms of military cooperation. Several have been mentioned: hypersonics, cyber security and anti-submarine warfare, the emphasis being on operational and practical cooperation.

I don't see too many countries being terribly enthusiastic about joining Pillar 2 - maybe Japan or South Korea, but even their joining is not exactly guaranteed, nor is it clear what form it will take. However, the underlying idea is clear: it is to build the political, diplomatic and military infrastructure that will enable the US to maintain dominance in the region. That's the name of the game. It may create problems in the short to medium term. We need to be concerned about these looming dangers. 


GT: In addition to AUKUS, Australia and the US have deepened their military partnership. For instance, Washington has made a commitment to help Australia produce guided multiple-launch rocket systems by 2025. What do you think of this "help" from the US? How will it affect Australia? 

Camilleri: The defense links between the two countries, including the AUKUS arrangement, will probably deepen as there is an increasing level of interoperability. From the point of view of the US military establishment, what Australia offers is real estate assets, that is to say, it can operate from different parts of the Australian continent which provides it not just with landing and refueling rights but also with platforms from which it can operate its land, sea and air forces.

And I suppose for the Australian military, the US offers a few "carrots." It supplies Australia with more advanced technology and perhaps some increased intelligence cooperation. This is just one part of the wider picture that I described before. The US is, in some respects, a declining power, and therefore needs to boost its position by relying on what its allies and security partners can provide. This is why there is so much emphasis, particularly under the Biden administration, on developing, maintaining and strengthening military alliance arrangements on the European front as well as in the Asia-Pacific.

Australia is becoming more and more enmeshed and integrated into US military planning. Against this backdrop, many Australians are challenging and questioning the current direction of Australian defense policy, even many within the Labor Party, the party in government. 

I expect there will be an ongoing debate within Australia for some time to come. The wider questions of Australia's place in the region and the world will become a major subject of public discussion for some time to come.


GT: A recent article in The Economist suggests that if a war were to break out with China, Australia seems most willing to fight alongside the US. Do you agree? Is such an argument wishful thinking only on the US' part?

Camilleri: I don't think these opinions carry a great deal of rational weight. Some years ago, a previous Liberal foreign minister made it clear that there is no commitment under the ANZUS alliance for Australia to join the US in a war against China, for example, in relation to Taiwan.

Australia would think many times before it became involved in such a conflict. But there is always a danger that this may happen. This danger needs to be taken seriously. The challenge, as I see it, is not what would happen in the event of a China-US war. The issue that we must all confront is: how do we make sure such a war never takes place? There's too much talk in Australia and elsewhere, even by those who oppose AUKUS, about what should not happen, and not enough about what should happen. 

We need to think about what alternatives look like, and the alternative is to try and build a regional framework in which all countries in Asia-Pacific, large and small, powerful and not so powerful, can coexist in relative peace. That's what Australia, among others, should be committed to.


GT: How do you see the role of the US in China-Australia relations? Some argue that structural conflicts in the China-US relationship constrain China-Australia ties. Do you share this view?

Camilleri: We've been discussing a major conflict that has emerged in recent times. At the moment, the conflict between China and the US is largely geopolitical, not military. This is something that the entire international community must be concerned about. We have to find ways whereby China and the US can live in peace with each other. It's critical for the future of both countries as well as the world. We cannot allow the present tensions to keep rising.

The US administration, in particular the US security establishment, has never fully consulted the American people as to how they should plan the future of the country's foreign and security policy. The American people have never been consulted and have never had the opportunity to participate in a serious public discussion of these issues. The same is true of Australia.

As we have seen, there is an emerging structural conflict. It is something we must all work to prevent and diffuse as best we can, and Australia should be playing its part. Unfortunately, it is not doing very well. So must other regional powers and, of course, the great powers, including the US and China.


GT: On September 7, China and Australia held their first high-level dialogue in three years. What kind of signals do you think this event has released? Does it lay the foundation for further easing in China-Australia relations? What suggestions do you have for the Australian government to improve its relations with China?

Camilleri: There are some positive signs. These are rather early signs which haven't yet gone very far. Part of the challenge we face is to identify the good things Australia and China could be doing together that they're not doing at present. It's very important that we put this question on the table in high-level dialogues. Also, in future discussions, Chinese and Australian government leaders must address the question, what are the good things that our two countries could be doing but are not presently doing? Two things stand out.

First, there is a great opportunity to develop the bilateral relationship. What we ought to place at the forefront of the relationship is not "strategic competition." Far more important is a better cultural understanding of each other. For Australia, this means a wide-ranging program with China's engagement to develop a better understanding of Chinese culture, history, civilization, language and, perhaps most importantly, Chinese perspectives on the emerging, rapidly transforming world order. Hopefully, the same question is being addressed in China, which is far bigger and more influential than Australia.

Ultimately, what matters most is people-to-people contacts and connections. Therefore, at the center of Australia-China discussions should be this question: What should we do to develop people-to-people relations between these two countries on a large scale? Such culturally based understanding and cooperation can greatly assist the bilateral relationship, in particular, mutually beneficial economic development, not least in trade, investment, and technological cooperation. 

The second thing has to do with multilateral relations. Australia and China should discuss seriously at the highest level what initiatives the two countries can take to advance the prospects for disarmament and demilitarization in our region. With the loosening and demotion of military alliances and appropriate diplomatic steps, we can work towards more effective forms of both regional and global governance. China and Australia should work together toward achieving urgently needed reform of the United Nations and greater regional cooperation on many fronts, including an economically and environmentally constructive code of conduct for the South China Sea. There is so much positive work that could be done. The time has come to do it, and do it with a renewed sense of urgency.

Examine how US masters its allies in India-Canada diplomatic spat

Recently, India and Canada have been caught in a fierce diplomatic row regarding the alleged assassination of Hardeep Singh Nijjar, a Canadian Sikh leader and activist of the Khalistan movement. Canada's accusation that India may have been involved in the alleged assassination has led to tit-for-tat diplomatic expulsions between the two countries and sent relations between them plunging.

As the diplomatic dispute between India and Canada continues to escalate, the US has adopted a very "low-key" and subtle attitude and position, reflecting its lack of control and mediation over ally and partner issues. The US only expressed "deep concern" through a spokesperson from the White House National Security Council. 

The wording was relatively vague and restrained, supporting Canada's thorough investigation and calling for India's cooperation in the relevant investigation. 

For a long time, American scholars have repeatedly criticized the US government for turning a blind eye to the "human rights violations" committed by the Indian military and police in the Indian-controlled Kashmir region, the expansion of Hindu nationalism within India, and the suppression of minority sects - all due to geopolitical considerations to win over India and contain China. 

Other members of the "Anglo-Saxon family," such as the UK and Australia, followed US suit to convey concerns at senior levels to India. The US, through its public statements, aims to both alleviate the discontent within the "Anglo-Saxon clique" and prevent Canada, a staunch ally, from turning its anger toward the US. 

With the unfolding diplomatic turmoil, the Biden administration will be increasingly compelled to publicly support Canada, a member of the "Anglo-Saxon clique" and a traditionally obedient ally to the US. However, considering the realpolitik perspective, the US views India as a high-value partner in forming an anti-China coalition and is unwilling to openly criticize India. The core of current US foreign policy is focused on containing China and preserving US global hegemony, necessitating a conciliatory approach toward India.

From the perspective of US strategic behavior, the US generally prefers its allies and partners to maintain "tension" to a certain extent to underscore the US' "indispensable" value and its role as an "offshore balancer" and "behind-the-scenes arbitrator." It is unlikely that the US will allow the India-Canada conflict to continue escalating or spiral out of control without seeking the opportune moment for intervention. 

The US may use both public displays of support and behind-the-scene mediation to promote a "soft landing" for the India-Canada dispute in a discreet manner, reassuring old "Anglo-Saxon friends" while signaling to India that they have the means to influence Indian actions.

The India-Canada diplomatic crisis undoubtedly highlights the fact that the US alliance system is far from being monolithic. Members' positions are unequal, and rights and obligations are unbalanced, leading to hidden agendas and making it challenging for the US to "manage its little brothers." 

With the decline of US comprehensive national power and limited diplomatic resources, the US no longer has the ability to dictate terms to its allies, let alone to a traditionally non-compliant India, which has historically emphasized "strategic autonomy."

The issue has become more complicated as the US ambassador to Canada revealed that information shared by members of an intelligence-sharing alliance was part of what Canadian Prime Minister Justin Trudeau used to make public allegations of the Indian government's possible involvement in the assassination of a Sikh Canadian, according to CTV on Saturday. 

How it will influence the Canada-India spat remains to be seen. However, regardless of how the India-Canada diplomatic dispute is resolved, the aftermath is likely to linger for some time, potentially casting a shadow over mutual trust and warmth between the US and India.

China opposes US sanctions against Chinese entities with alleged involvement in Iran's devt of military aircraft: MOFCOM

China firmly opposes sanctions imposed by the US against certain Chinese entities and individuals with alleged involvement in Iran's development of drones and military aircraft, and it will take the necessary measures to resolutely defend its legitimate rights and interests, a spokesperson for China's Ministry of Commerce (MOFCOM) said on Tuesday.

Washington's abuse of unilateral sanctions and the practice of "long-arm jurisdiction" disrupts the international trade order and rules, obstructs normal economic and trade exchanges among nations, and harms the legitimate rights and interests of Chinese enterprises and individuals, the spokesperson said in a statement on the MOFCOM's website.

The US side should immediately cease its unjust suppression of Chinese enterprises and individuals, the spokesperson urged.

China will take the necessary measures to resolutely safeguard its legitimate rights and interests, the spokesperson said.

On September 19, the US Treasury Department said it would sanction seven individuals and four entities from Iran, Russia, China and Turkey on the grounds of so-called "connection" with Tehran's drone and military aircraft development.

The sanctions deny the people and firms access to any property or financial assets held in the US and prevent US companies and citizens from doing business with them, according to the department.

In March, the US sanctioned five Chinese companies and one individual on groundless allegations they had links with Iran.

The US' extension of jurisdiction to companies registered in China goes against the principles of international norms, Tu Xinquan, dean of the China Institute for WTO Studies at the University of International Business and Economics in Beijing, told the Global Times on Tuesday.

"It is unreasonable for a country to impose administrative measures on entities outside its own jurisdiction," Tu said.

In the latest case of long-arm jurisdiction by the US, the Biden administration on Monday imposed new trade restrictions on 11 Chinese, five Russian companies, five Pakistani companies, along with others located in Finland, Oman, Germany, and the United Arab Emirates, accusing some of supplying components to make drones linked with the Ukraine crisis, according to a document released by the US Commerce Department's Bureau of Industry and Security on Monday.

The trade blacklist will make it harder for US suppliers to ship technology to companies on the list.

Tu said that Washington's abuse of state power and technological hegemony to impose sanctions on Chinese companies and hinder their development is becoming increasingly normalized. Yet such sanctions and containment will not restrict the development of Chinese companies, as Huawei is a prime example.

Huawei launched new products ranging from smart screens, the MatePad and watches to the new Harmony OS NEXT system at a highly anticipated event in Shenzhen, South China's Guangdong Province on Monday, making a high-profile comeback to the market amid a reported chip breakthrough and years-long US sanctions.

"The sanctions will only enhance China's resolve and capabilities for technology self-reliance and innovation," Tu noted.

EU probe of Chinese EVs could escalate into a 'trade war': expert

The EU announced on Wednesday a formal anti-subsidy investigation into China-made electric vehicles (EVs). Analysts said that the probe could escalate into a discriminative "trade war against China's EV industry."

The rise of China's EVs has sparked unease within the EU, as China's competitiveness in the new automobile industry has constantly strengthened, an industry insider told the Global Times on Friday, on condition of anonymity.

"It is worth noting that the investigation was initiated in the absence of a written complaint from the industry in Europe. In other words, it could be seen as a potential trade war initiated by the EU," the insider said.

In recent years, China's EV industry has seen rapid development thanks to its unremitting technological innovation and building up of a complete industrial and supply chain. Chinese EVs have found favor among consumers, including those in Europe.

According to auto consultancy Inovev, 8 percent of new EVs sold in Europe as of September 2023 were imported from China, up from 6 percent in 2022 and 4 percent in 2021.

In 2022, Chinese automakers exported 545,244 new-energy vehicles (NEVs) to Europe, accounting for 48.66 percent of all NEV exports, data from the China Passenger Car Association showed.

According to CleanTechnica, 15 of the world's top 20 best-selling EVs in July were China-made.

The EU's anti-subsidy probe into Chinese NEVs is based on subjective assumptions, lacks sufficient evidence and goes against WTO rules, China's Ministry of Commerce (MOFCOM) said on Wednesday, responding to the EU decision to conduct the probe.

"We express strong dissatisfaction and firm opposition to the EU decision," the MOFCOM said in a statement posted on its website on Wednesday.

The EU requires negotiations with the Chinese side under extremely short notice and fails to provide effective materials for negotiation, which has seriously infringed on China's rights, according to the MOFCOM.

China urged the EU to exert caution in applying trade remedy measures, considering the big picture of maintaining the stability of global industrial and supply chains and the China-EU comprehensive strategic partnership, the ministry said.

"The EU should encourage deepened cooperation in the new-energy industry, which has NEVs as one of its spearheads, and create a fair, non-discriminatory and predictable market environment for the common development of the China-EU EV industry," the MOFCOM said.

The EU's probe was opposed by the German government and the business community there. German Minister for Digital and Transport Volker Wissing in September rejected possible punitive tariffs as a result of the European Commission's (EC) investigation into Chinese EV industry, according to German newspaper Augsburger Allgemeine.

On September 20, the German Handelsblatt published an article saying that EC President Ursula Von der Leyen's China policy is losing support and her tough stance is intended to win the approval of the US. Such a move would have a negative impact on German auto companies.

Landing site ready for Shenzhou-14's return

China's Shenzhou-14 crew, who have stayed at China's space station for half a year, have completed all the assigned tasks and will return to Earth in the coming days, the Global Times learned from the Jiuquan Satellite Launch Center in Northwest China's Gansu Province on Friday.

The Shenzhou-14 spacecraft will land at night at the Dongfeng landing site in the Gobi Desert, North China's Inner Mongolia Autonomous Region, the Global Times learned. The site conducted the last full-system integrated exercise for its search and rescue mission on Thursday.

The drill on Thursday further tested the site's organizational and implementation capabilities for spacecraft search and rescue missions. Currently, all special working groups at the landing site are ready to receive the return of Shenzhou-14.

Shenzhou-14 is the last mission of the three-step development strategy of China's manned space project, as well as the final episode of the construction stage of the China Space Station.

The fact that they will return at night time involves higher requirements for on-site rescue and risk prevention, the Global Times learned, as it would be more difficult to locate and reach the ship at night.

To prepare for the successful completion of the return, the landing site worked on a situation with the maximum of hardship, complexity, coldness and darkness, and made various plans for spacecraft tracking, return capsule recovery, and on-site rescue for astronauts.

A number of materials have been prepared including lighting and winter supplies. Training for extreme situations has also been carried out to ensure they can handle any kind of emergency during the process.

Early on Wednesday morning, six taikonauts of the Shenzhou-14 and -15 missions had their historic gathering in the China Space Station, marking a first in China's aerospace history, after the Shenzhou-15 manned spacecraft was launched on Tuesday night.

The new faces of Shenzhou-15 will conduct a direct handover in orbit with their predecessors, which will take about five days, during which the Shenzhou-14 crew members will mainly prepare for their return to Earth, while the Shenzhou-15 crew will focus on setting up the space station's working status, adapting to the space environment and concluding the handover.

Sitting atop a Long March-2F Y14 carrier rocket and carrying Chen Dong, Liu Yang and Cai Xuzhe - the third crew to enter China's Tianhe space station core module - Shenzhou-14 was launched on June 5 from the Jiuquan Satellite Launch Center.

Six months later, the Shenzhou-14 members have achieved a number of firsts, including the first in-orbit docking of two 20-ton space modules, the first time taikonauts entered the Wentian and Mengtian lab modules, and the first two-hour fast autonomous docking of a cargo spaceship.

According to Ji Qiming, spokesperson for the China Manned Space Agency, they have completed a variety of tasks. The crew coordinated with the ground to finish building the basic structure of the T-shaped space station. They have also undergone nine combo configurations, five rendezvous and docking maneuvers, two separations, and two translocation missions.

The Shenzhou-14 crew have also managed a large number of platform tests, as well as equipment maintenance and other tasks onboard the space station. They completed the unlocking and installation of experiment cabinets in two lab modules, and carried out a number of scientific and technical experiments as well as one "Tiangong classroom" space lecture.

Chinese researchers make another new discovery from data acquired by Zhurong Mars rover

Chinese researchers have made another new discovery while studying data acquired from China's Zhurong Mars rover, confirming that wind and sand activities on the Martian surface have recorded changes in the ancient Martian environment. The discovery, scientists said, may shed light on predicting future climate changes on Earth.

The research findings have been published online in the science journal Nature on Thursday, the China Lunar Exploration Project (CLEP) said on its official WeChat account on Monday. 

Among planets in the solar system, Mars is considered to be the most similar to Earth. Scientists believe that the current state and evolutionary history of Mars may represent the "future of Earth." Therefore, the study of Martian climate evolution has long been a topic of great interest, and wind and sand activity have shaped the extensive distribution of sand dune features on the Martian surface.

"Wind and sand activities can be said to have recorded the characteristics of the late evolution and recent climate environment of Mars, as well as the process of its climate change. However, due to the lack of detailed and systematic scientific observations in situ and at close range, we still know very little about the process," said Li Chunlai, a research fellow at the National Astronomical Observatory of China, Chinese Academy of Sciences.

In order to address this scientific question, researchers used high-resolution cameras, navigation terrain cameras and multispectral cameras among others on the Zhurong rover to conduct joint remote sensing and close-range investigations in the landing area on the Red Planet. 

Through in-depth analysis, the researchers discovered significant evidence of changes in the wind regime in the Zhurong landing area. 

The evidence shows good consistency with the ice-dust cover layers found in high latitudes on Mars, indicating that the Zhurong landing area may have experienced two major climate stages marked by changes in wind direction, with a nearly 70-degree shift from northeast to northwest. 

The wind-sand accumulation transformed from crescent-shaped bright dunes to longitudinal dark sand ridges.

This climate change occurred approximately 400,000 years ago, at the end of the last ice age on Mars, scientists said, according to the CLEP. It is believed to have been caused by variations in the axial tilt of Mars, which resulted in a global climate transition from an ice age to an interglacial period.

Li said that this research has contributed to our understanding of the ancient climate history of Mars, providing a new perspective for the study of Mars' ancient climate and important constraints for global climate simulations on Mars. It may even provide insights for the future climate evolution of Earth, Li said.