Xi in France; Overcapacity; Chinese modernization; PRC-Philippines; Real estate

President Xi stressed that China-EU relations enjoy strong endogenous driving force and bright prospects of development. This relationship does not target any third party, nor should it be dependent on or dictated by any third party. It is hoped that the EU institutions will develop the right perception of China and adopt a positive China policy..

President Xi pointed out that China’s new energy industry has made real progress in open competition and represents advanced production capacity. It not only increases global supply and alleviates the pressure of global inflation, but also contributes significantly to global climate response and green transition. The so-called “problem of China’s overcapacity” does not exist either from the perspective of comparative advantage or in light of global demand. China-EU cooperation is in essence complementary and mutually beneficial. The two sides have extensive common interests and broad space for cooperation in green and digital transition. It is necessary that they properly address economic and trade frictions through dialogue and consultation, and accommodate each other’s legitimate concerns.

President Macron noted that this year marks the 60th anniversary of diplomatic relations between France and China. Cooperation between the two sides has yielded many important outcomes. President Macron expressed his delight in holding the France-China-EU trilateral leaders’ meeting during President Xi’s third state visit to France. This is both a continuation of the previous France-China-EU trilateral meetings and also what is urgently needed to address the various international challenges. The world today faces major challenges, and the international situation is at a critical inflection point. Now more than ever, France and the EU need to strengthen cooperation with China, as this bears on the future of Europe. France hopes to enhance dialogue and cooperation with China, and strengthen mutual trust and friendship between France and China and also between the EU and China. The EU refuses the logic of decoupling. It welcomes investment and cooperation by Chinese companies in Europe. The EU hopes to step up cooperation with China and jointly safeguard the security and stability of value chains and supply chains in Europe. France wishes to work with China closely to address global challenges such as climate change and marine biodiversity.

Together with President Macron, the first topic where we exchanged views on was the geopolitical situation. We especially discussed Ukraine and the conflicts in the Middle East. We agree that Europe and China have a shared interest in peace and security. We count on China to use all its influence on Russia to end Russia's war of aggression against Ukraine. President Xi has played an important role in de-escalating Russia's irresponsible nuclear threats, and I am confident that President Xi will continue to do so against the backdrop of the ongoing nuclear threats by Russia. We have also discussed China's commitment not to provide any lethal equipment to Russia. More effort is needed to curtail delivery of dual-use goods to Russia that find their way to the battlefield. And given the existential nature of the threats stemming from this war for both Ukraine and Europe, this does affect the EU-China relations...

subsidised products – such as the electric vehicles or, for example, steel – are flooding the European market. At the same time, China continues to massively support its manufacturing sector. Combined with a domestic demand that is not increasing, the world cannot absorb China's surplus production. Therefore, I have encouraged the Chinese government to address these structural overcapacities. At the same time, we will closely coordinate with G7 countries and emerging economies that are also increasingly affected by China's market distortions...

The EU-China relation is a complex relationship. We approach it clear-eyed, constructively and responsibly. Because a China that plays fair is good for all of us. At the same time, Europe will not waver from making tough decisions needed to protect its economy and its security.

China understands the repercussions of the Ukraine crisis on the people of Europe. China did not start the Ukraine crisis, nor is it a party to or a participant in it. Nonetheless, China has been playing a constructive role in striving for peaceful settlement of the crisis. I have made many appeals, among others, observing the purposes and principles of the UN Charter, respecting sovereignty and territorial integrity of all countries, and addressing the legitimate security concerns of all sides. I have stressed that nuclear weapons must not be used, and a nuclear war must not be fought. China has delivered to Ukraine many shipments of humanitarian aids, and sent its special representative many times to mediate among the countries concerned. The longer the Ukraine crisis drags on, the greater harm it will do to Europe and the world. China hopes that peace and stability will return to Europe at an early date. We stand ready to work with France and the whole international community to find a reasonable way out of the crisis...

Confucius observed that "a man of true moral integrity is one who is both friendly but independent, and who does not compromise his principles, and who is independent without any bias or taking sides. How unflinchingly firm he is in his strength!" French writer Romain Rolland said that "it is so much easier to allow oneself to be guided than it is to think for oneself. This abdication is the kernel of the mischief." Both China and France value independence as two major countries. Our interactions in the long course of history have released tremendous energy swaying the trajectory of the world. Now we are standing at another historical starting point. Let us join hands together on this new journey toward greater progress in China-France relations to the benefit of our two countries and the world!

Speaking at a press conference after the talks, Macron said he welcomed Chinese "commitments to refrain from selling any arms" or providing "any aide" to Russia in support of Moscow's war in Ukraine.

He said France and Europe "respect the ancient links which unite China and Russia" and therefore welcomed Beijing's promise "to strictly control the exportation of double-usage goods" which could be used militarily.

He said he was keen to "maintain a close dialogue" with Beijing and thanked Xi for coming to France to "coordinate" ahead of a visit by [Russian] President [Vladimir] Putin to China.

Xi Jinping said here on Sunday that he hopes China and France will light up their way forward with the torch of history, open a brighter future of China-France relations and make new contributions to world peace, stability and development...

As important representatives of Eastern and Western civilizations, China and France have a long history of mutual appreciation and admiration, Xi said.

French Enlightenment thinkers turned to study Chinese culture centuries ago, and great French thinkers and writers such as Voltaire, Diderot, Hugo and Balzac have been household names in China, he added.

He also noted that 60 years ago, the two countries broke through Cold War blocs and established diplomatic relations at the ambassadorial level.

We have decided to undertake the following work:

First, consolidate the strategic stability of bilateral relations. I welcome President Macron's visit to China again. Both China and France reaffirm mutual respect for each other's core interests and will make good use of multi-level and multi-dimensional communication channels to timely communicate and coordinate policy positions.

Second, tap into the vast potential of mutually beneficial cooperation. Both sides will promote the upward balance of bilateral trade, expand cooperation in agriculture, finance, and other fields, advance joint research and innovation in aviation, aerospace, civil nuclear energy, and strengthen strategic alignment in development. We will also expand cooperation in emerging fields such as green energy, smart manufacturing, biomedicine, artificial intelligence, and third-party markets. China has already achieved comprehensive opening-up in the manufacturing sector and will accelerate the opening-up of markets in telecommunications, healthcare, and other services. We encourage expanding two-way investment and are committed to providing a favorable business environment for companies from both countries. During this visit, both sides have signed 18 interdepartmental cooperation agreements covering areas such as aviation, agriculture, culture, green development, and cooperation with small and medium-sized enterprises.

Third, accelerate "two-way visits" in cultural exchanges. Taking the opportunity of the China-France Year of Culture and Tourism, we will promote cooperation in education, sports, film and television, youth, and local areas. China supports France in hosting the Paris Olympics and welcomes more French friends to China. We have decided to extend the visa-free policy for short-term visits to China by citizens of France and 12 other countries until the end of 2025, and support the opening of direct flights from Shanghai to Marseille. The China Fujian Shipbuilding School built with the participation of French personnel 150 years ago and the work-study movement to France in the early 20th century are both excellent stories in the history of educational exchanges between the two countries. We welcome France's role as the main guest country at this year's China International Education Conference and aim to double the number of French students studying in China to over 10,000 and double the scale of youth exchanges between China and Europe in the next three years.

Fourth, gather greater consensus for global cooperation. Both sides will deepen cooperation in areas such as climate change and biodiversity, and strengthen dialogue in global governance of artificial intelligence and reform of the international financial system. China supports France in hosting the United Nations Ocean Conference in 2025 and encourages the pairing of national parks and nature reserves between the two countries.

Xi’s decision to visit Serbia and Hungary will make it difficult to convince most other Europeans that he comes in friendship. Serbia sits outside both the EU and Nato; while Hungary has undermined both organisations from within. Both countries are friendly to Russia. The fact that Xi will return home to receive Vladimir Putin in Beijing, shortly afterwards, will deepen European apprehension about China’s real intentions.

Charles de Gaulle once said at a press conference after the establishment of diplomatic relations between China and France, "France simply recognizes the world as it is." He firmly believed in the long history of Chinese civilization and emphasized that global development cannot be without China. Today, as China deeply integrates into globalization, just as de Gaulle foresaw, it has a strong willingness and continues to contribute to global development. China's expansion of high-level openness and deepening cooperation with other countries, including France, is not a forced choice, but a conclusion drawn from our own development experience and a natural result of our development needs. China offers opportunities rather than risks, and seeks cooperation rather than confrontation. As long as one can correctly grasp the main thread of comprehensively understanding China's development, all problems will be technical and temporary.

Sun Keqin, a research fellow at the China Institutes of Contemporary International Relations, told the Global Times that the US has very deep involvement in European affairs.

"US interference remains, but Europe has kept a certain degree of autonomy and is able to cooperate with China, especially the French leadership which has always had a strong sense of strategic autonomy in a pragmatic manner," said Sun.

Through the visit of the Chinese top leader, Europeans will also have the opportunity to think about how to handle its relations with China, whether to follow the US to engage in confrontation and lose their own interests, or to jointly develop mutual benefits and get win-win results, the expert said.

China has decided to extend the visa-free policy for short-term visits to China by citizens of 12 countries, including France, until the end of 2025, Xi said.

China will expand the opening-up of telecommunications, medical and other service industries, and further open up its market to create more opportunities for companies from all over the world, including France and Europe, Xi added

"The world today is far from being calm. As member of the United Nations Security Council and as a responsible country, China urges with France for a truce in the world during the Paris Olympic games," Xi said, speaking through an interpreter alongside Macron during a joint statement.

"France welcomes all industrial projects. BYD and the Chinese auto industry are very welcome in France," Le Maire said at a meeting with car sector executives.

Xi intended to play hardball, Chinese officials and analysts said. Behind the expected displays of public bonhomie and promises of Chinese investment, he would warn European leaders that duties on Chinese exports would elicit an uncompromising response, they added.

“China could impose restrictions on the export of materials needed to make microchips and on French exports to China and several other items,” said one Chinese analyst who asked not to be named.

Chinese commentators have highlighted remarks that Macron made last year after visiting China that Europe should forge its own strategic independence and become a “third pole” in geopolitics, autonomous of Beijing and Washington.

Nationalist Chinese commentator Hu Xijin wrote on microblogging platform Weibo that the core of Gaullism, which is “ingrained in French people’s bones”, is “strategic autonomy”, adding that Macron had warned Europe against being “America’s followers”.

President Vladimir Putin has ordered the Russian military to hold nuclear weapon drills involving the navy and troops based near Ukraine, the defence ministry said Monday.

“During the exercise, a set of measures will be taken to practise the preparation and use of non-strategic nuclear weapons,” the defence ministry said.

Compiled by the Institute of Party History and Literature of the CPC Central Committee, the book collects a series of important discourses by Xi between November 2012 and October 2023 regarding Chinese modernization.

“We need to maintain low costs, otherwise nobody is going to be able to afford the energy transition,” Liu said in an interview with Bloomberg Television. “What I’m worried about is if the US and European Union continue to insist on that approach, it would result in a delay in the substitution of fossil fuels by renewables globally.”

Excerpts:

The global capacity pattern is the result of the operation of the law of value. Under market economy conditions, the law of value fundamentally regulates the production and exchange of goods, as well as determining the distribution pattern of capacity. In market competition, capacity with higher production efficiency can obtain higher profits at lower prices, thereby eliminating capacity with lower production efficiency. In this process, the coexistence of efficient and inefficient capacity is not overcapacity but rather a necessary stage where the law of value operates. For example, as technology advances and the concept of green development becomes more prevalent, electric vehicles are gradually replacing fuel vehicles. According to the "Global Electric Vehicle Outlook 2024" report released by the International Energy Agency, global electric vehicle sales approached 14 million units in 2023, accounting for 18% of total sales. It is projected that by 2030, one-third of cars on China's roads will be electric vehicles, while the proportion in the United States and the European Union is expected to approach one-fifth. Data from the China Automobile Dealers Association's Automobile Market Research Branch shows that in the first half of April 2024, the retail penetration rate of new energy passenger vehicles in China reached 50.39%, surpassing fuel vehicles for the first time. Looking at the global trend of new energy vehicles, the gap between supply and demand for new energy vehicles is continuously expanding, indicating that efficient capacity is not surplus but insufficient. Therefore, which industries have overcapacity and which capacities are surplus should be judged by the market and measured globally. Excluding competition in the name of "overcapacity" does not comply with the fundamental principles and rules of the market economy, nor does it meet the requirements of the law of value. It will inevitably lead to monopoly, inefficiency, and stagnation, which are detrimental to the long-term development of any country...

全球产能格局是价值规律作用的结果。在市场经济条件下，价值规律从根本上调节着商品的生产和交换，也决定着产能的分布格局。在市场竞争中，生产效率更高的产能可以更低的价格来获取更高的利润，从而淘汰生产效率低的产能。在这个过程中，高效产能与低效产能的阶段性并存并不是产能过剩，反而是价值规律发挥作用必经的过程。比如，随着技术进步和绿色发展理念深入人心，新能源汽车开始逐步替代燃油车。国际能源署发布的《2024年全球电动汽车展望》报告显示，2023年全球电动汽车销量接近1400万辆，占总销量的18%，预计到2030年，中国道路上行驶的汽车有1/3是电动汽车，美国和欧盟这一比例有望接近1/5。中国汽车流通协会汽车市场研究分会的数据显示，2024年4月上半月，中国新能源乘用车零售渗透率为50.39%，首次超过燃油车。从全球新能源汽车发展态势看，全球新能源汽车供需缺口不断扩大，高效产能不是过剩而是不足。因此，什么产业存在产能过剩，哪些产能是过剩产能，应交给市场去判断，放在全球下来衡量。以“过剩”的名义排除竞争，不符合市场经济的基本精神和规则，不符合价值规律的要求，必定导致垄断、低效和停滞，不利于任何一个国家的长远发展。

As the world's largest manufacturing country and the largest exporter of goods, China has seen countless emerging industries and enterprises continually emerging, with one generation after another achieving innovation through technological advancement and market competition. This reflects the vitality and creativity of the Chinese economy, rather than any manifestation of excessive investment and overcapacity.

中国作为全球制造业规模最大的国家和最大商品出口国，无数新兴的产业和企业不断涌现，长江后浪推前浪，不断上演依靠科技创新推陈出新、奋勇争先的市场大戏，这是中国经济活力和创造力的反映，而不是什么过度投资和产能过剩的表现。

The adjustment of the globally market-driven capacity pattern will continue to move forward amidst challenges. In recent years, some countries, for political purposes, have implemented measures such as "decoupling" and "offshoring" in the economic field, leading to a large amount of redundant construction and global overcapacity. Such behavior, which goes against globalization, excludes competition, and violates the value laws of the market economy, has raised global production costs, reduced economic efficiency, and harmed the welfare of global consumers and the interests of related businesses. Only through free trade and full competition can the optimal solution for the global capacity pattern be formed. Many international companies have realized that the fiercely competitive and innovative Chinese market is like a "well-equipped gym." Faced with the continuous growth and development of China's manufacturing industry, the correct and positive attitude should be to compete openly and fairly with Chinese companies in an open market, seek cooperation opportunities, progress together, rather than hiding behind the walls of trade protectionism and nationalism, and shooting "overcapacity" arrows. Openness brings progress, while closure leads to backwardness. This is an important lesson drawn from China's history over the past two centuries and will be further tested in the history of the new century.

市场驱动的全球产能格局调整将在波折中不断向前。近年来，一些国家出于政治目的，在经济领域“脱钩断链”，实施“小院高墙”“友岸外包”“产能备份”等措施，造成大量重复建设和全球性产能过剩。这种逆全球化、排除竞争、违背市场经济价值规律的行为，推高了全球生产成本，降低了经济效率，损害的是全球消费者福祉和相关领域企业利益。只有自由贸易、充分竞争，才能形成全球产能格局的最优解。很多国际企业已经正确认识到，竞争激烈、创新活跃的中国市场是一个“设备齐全”的“健身房”。面对中国制造业的不断发展壮大，正确的、积极的态度应该是在开放公平的市场上与中国企业光明正大地竞争，并寻求合作机会，共同进步，而不是躲在贸易保护主义和民族主义的高墙后，射出“产能过剩”的冷箭。开放带来进步，封闭导致落后。这是中国从过去两个世纪历史中得出的重要经验，也将得到新世纪历史的进一步检验。

Breaking through the bottlenecks and obstacles that hinder the integration of supply and demand is a key breakthrough in coordinating the expansion of domestic demand and optimizing supply. Currently, China's economy faces challenges such as insufficient effective demand, overcapacity in some industries, weak social expectations, and numerous hidden risks. Various issues are intertwined and compounded.

打通供需结合的断点堵点卡点是统筹推进扩大内需和优化供给的重要突破口。当前，我国经济面临有效需求不足、部分行业产能过剩、社会预期偏弱、风险隐患仍然较多等困难挑战，各类问题交织叠加

At the Central Economic Work Conference in 2023, the Central Committee of the Party pointed out profoundly that in addition to confronting the instability and uncertainty factors caused by the severe and complex external situation, China's economic development also faces some difficulties and challenges internally. Mainly, there is insufficient effective demand, overcapacity in some industries, weak social expectations, and numerous hidden risks. There are bottlenecks in the domestic circulation.

在2023年中央经济工作会议上，党中央深刻地指出，我国经济发展除了要直面外部严峻复杂形势造成的不稳定不确定性因素之外，自身发展也面临一些困难和挑战，主要是有效需求不足、部分行业产能过剩、社会预期偏弱、风险隐患仍然较多，国内大循环存在堵点

Faced with global climate change, an article on the website of The New York Times reports that "among all the efforts globally to slow down further warming of the climate, electric vehicle sales are the only category that aligns with achieving climate goals." It's not difficult to see that when discussing climate change, some people in the United States believe that there is still insufficient capacity in new energy production; however, when it comes to China's new energy industry, they accuse it of "overcapacity." Some in the United States demand that consumers switch to electric vehicles, yet they also try to prevent competitively priced Chinese electric vehicles from being supplied globally. Behind such self-contradiction, it is evidently not China's "overcapacity" but rather an "overabundance of anxiety" among some in the United States...

面对全球气候变暖，美国《纽约时报》网站报道称，“在全球努力延缓气候进一步变暖的所有变革中，电动车销售是符合实现气候目标的唯一类别”。不难看出，当谈论应对气候变化时，美国一些人认为新能源产能仍然不足；而谈到中国新能源产业时，又指责“产能过剩”。美国一些人一边要求消费者转向电动车，却又试图阻止中国价格更优的电动车向全球供应。如此自相矛盾的背后，显然不是中国“产能过剩”，而是美国一些人“焦虑过剩”。

From the so-called "China threat theory" to the "China shock theory," and then to the "overcapacity theory," continuously constructing variations of the "China threat narrative" essentially provides excuses for some in the United States to undermine the principles of fair market competition and defend protectionist economic policies. However, this performance is like speeding on the edge of a cliff; no matter how skilled the driving, it cannot avoid the risk of crashing.

从所谓“中国威胁论”，到“中国冲击论”，再到“产能过剩论”，不断构建“中国威胁叙事”的变体，实则为美国一些人破坏公平市场原则找借口，为保护主义经济政策寻辩护。但这一次的表演，如同在悬崖上高速飙车，再高超的车技也无法避免翻车的风险。

"Chinese Modernization: The Way Forward" offers an authoritative interpretation of Chinese modernization and is key to understanding contemporary China's development experience.

Throughout history, Western modernization theories have been constructed based on Western experiences. The development of most developed Western countries has been a gradual process, progressing in the sequence of industrialization, urbanization, agricultural modernization, and digitalization.

In this context, China, as the largest developing country, grapples with a vast territory, a significant population and pronounced regional disparities. Its path to modernization requires resolving numerous intricate issues, some of which the West has never encountered.

China, in response, has charted a course of coordinated development, diverging from the Western modernization trajectory. In a remarkably short period, it has accomplished an industrialization process that took the developed Western countries several centuries, thereby forging a path of rapid economic development and enduring social stability.

The Chinese modernization has provided an alternative approach to development and allowed nationalities to accelerate growth while maintaining self-reliance and independence, shattering the delusion that modernization equals Westernization…

The report, co-issued by the Institute of Party History and Literature of the Central Committee of the Communist Party of China (CPC) and Xinhua Institute, which is a high-end think tank of Xinhua News Agency, lists detailed characteristics of Chinese modernization.

Unlike Western modernization, the report noted, the Chinese version puts people, not capital, first; it debunks the rhetoric of "the end of history" and pursues the constant improvement and innovation of systems and institutions; it pursues a model of comprehensive and coordinated development; it ensures that the people run their country and that democracy is not practiced for the few; it strives to both preserve cultural heritage and enrich it; and it rejects unilateralism in global governance and advances the building of a human community with a shared future.

The Chinese Embassy put five questions to the Philippines: Why the Marcos administration repeatedly denies having negotiated with China to reach understandings and arrangements on Ren'ai Jiao?

Why does the Philippine Department of National Defense refuse to engage in dialogue and negotiation with China to properly handle maritime disputes?

The "new model" has been proven to be effective in managing differences and avoiding conflicts, why has the current Philippine government unilaterally abandoned it after being put into practice only once?

Who made the decision to betray the "new model"?

Does managing differences and avoiding conflicts go against the interests of certain forces?

China has always been committed to properly managing maritime differences through dialogue and consultation with the Philippines and has made relentless efforts in this regard. The “gentlemen's agreement” is a concrete outcome of such efforts. To follow up on the important consensus between the two heads-of-state to deescalate tension in the South China Sea,  the Chinese side and the Philippine side through AFP WESCOM agreed on a “new model” for the management of the situation at Ren'ai Jiao early this year after multiple rounds of discussions. Either the “gentlemen’s agreement” or the “new model” is a confidence-building measure aimed at managing disputes, avoiding conflicts and maintaining peace, and has nothing to do with each other's sovereign positions. During the discussion the AFP WESCOM has made repeated confirmation that the “new model” has been approved by all key officials in the Philippine chain of command, including the Secretary of National Defense and the National Security Advisor. The communication and negotiation on this subject matter is kept on record in every detail by the Chinese side. Thanks to the “new model”, frontliners of both sides had guidance to follow on how to interact with each other, which made the resupply mission on last February 2 a smooth one. The AFP Spokesperson described this resupply mission as“flawless” in a post on social media X on the same day. Positive efforts of the frontliners in this regard are commendable.

China has always attached great importance to communication and dialogue with the Philippine DND and the AFP. In fact, on 5th of July 2023, Chinese Ambassador to the Philippines had the honor to pay a courtesy call on Defense Secretary Gilberto C. Teodoro Jr. at Camp Aguinaldo, exchanged views with the latter on China-Philippines military relations, and maritime issues, among other things. Duringing the meeting, the Philippine side was briefed on the "gentlemen's agreement" on the management of Renai Jiao. Readouts of the meeting were released respectively by the DND and the Chinese Embassy in the Philippines.

The above are facts, not narratives or inventions. China is always committed to managing the situation at Ren'ai Jiao and maintaining dialogue and communication with the Philippines in a responsible manner. It is regretable that despite the internal understandings and arrangements, peace and tranquility was disrupted again and again at Ren'ai Jiao.  More and more questions are wracking our brains. Why does the Philippine administration keep denying and resisting the understandings and arrangements? Why does the DND refuse to properly manage maritime differences through dialogue and negotiation? Admittedly the "gentlemen's agreement" was reached during the previous Philippine administration, it is also a fact that the "new model" was reached during the incumbent Philippine administration. Then why was such a model which has been proven effective in practice for managing differences and avoiding conflicts abandoned again by the Philippines without any good  reason after it worked only once? And who made the decision to abandon the "new model"? Could it be that managing differences and avoiding conflicts go against the interests of certain forces?

Amid an onslaught of revelations, claims, truths, and half-truths from Beijing on the West Philippine Sea, Philippine Foreign Secretary Enrique Manalo wants to make one thing clear: Philippine actions in security, diplomatic, or economic ties are “for our own national purposes or national security” and not to play into superpower competition.

“We just answer it back. And we’re ready to answer it back also through our own releases. One common theme is that we hope China realizes that many of the actions we are taking are being taken for our own national purposes or national security and not in the context, let’s say, of a US-China competition or rivalry. We’re doing it for our own needs,” Manalo said in a sit-down interview that aired Friday, May 3, for Rappler’s World View with Marites Vitug.

Philippine Defense Secretary Gilberto Teodoro Jr. and National Security Adviser Eduardo Ano issued separate statements on Sunday stating that “there was no discussion or briefing on any ‘gentlemen’s agreement’ or ‘new model’ and claims of ‘new model’ is absolutely absurd, ludicrous, and preposterous.”

Lin said during the press conference that China and the Philippines reached a "gentlemen’s agreement" after intensive communications and consultations at the end of 2021, which continued to be implemented by the current Philippine administration until February 2023, when the Philippines ceased to comply.

The Chinese side in September 2023 invited the Philippine President's special envoy to China for consultations on the management of the situation at Ren'ai Jiao and reached an internal understanding, which was agreed to by the Philippine leadership and implemented once for the subsequent transportation and replenishment mission, after which it was abandoned by the Philippine side.

U.S. Navy Adm. Samuel Paparo, who relieved Adm. John Aquilino at the ceremony, said China's actions go beyond the standard phrase of "gray zone."

"My friend Gen. Brawner from the Republic of the Philippines ... has renamed gray zone, which sounds otherwise benign and dull, into ICAD, which is illegal, coercive, aggressive and deceptive," Paparo said. He was referring to Gen. Romeo Brawner, chief of staff of the Armed Forces of the Philippines.

"This demonstrates the wisdom of our allies and partners," he said.

Secretary of Defense Lloyd Austin met Thursday with his counterparts from Australia, Japan and the Philippines as the US deepens ties with an emerging regional group that Pentagon officials have privately nicknamed, the “Squad.”..

A US official who requested anonymity to discuss the “Squad” said the grouping aims to counter coercion and aggression across Asia, as well as to ensure that defense capabilities among their militaries are increasingly inter-operable, allowing them to work more efficiently together in the event of conflict.

Defense chiefs from the US, Australia, Japan and the Philippines gathered in Hawaii on Thursday (local time) for their second joint meeting, lining up yet another regional group dubbed the "Squad" by Pentagon officials, while vowing a strengthened alliance among the four countries.

Chinese analysts warned on Sunday that this new quadrilateral grouping, distinct from the older version of the Quad which was also assembled by the US, poses a more targeted challenge to China. The grouping, part of Washington's "Indo-Pacific Strategy," aims at containing China, leading to concerns about more complex tensions and division among regional countries.

Chinese analysts warned that the Philippines, increasingly manipulated by the US, is losing its autonomy and becoming a pawn of the US in the region, which could lead to the "Ukrainization" of the Philippines.

The Ministers and Secretaries expressed serious concern about the situation in the East and South China Seas. They strongly objected to the dangerous use of coast guard and maritime militia vessels in the South China Sea. They reiterated serious concern over the PRC's repeated obstruction of Philippine vessels' exercise of high seas freedom of navigation and the disruption of supply lines to Second Thomas Shoal, which constitute dangerous and destabilizing conduct. The Ministers and Secretaries emphasized the importance of upholding freedoms of navigation and overflight, and respect for international law, as reflected particularly in the United Nations Convention on the Law of the Sea (UNCLOS). They called upon the PRC to abide by the final and legally binding 2016 South China Sea Arbitral Tribunal Award and resolved to work together to support states exercising their rights and freedoms in the South China Sea.

Home sales fell in 19 of 22 surveyed cities during the five-day May Day compared to the same period of 2023, and were down more than 60% in mega cities of Guangzhou and Shanghai, according to data from the China Index Academy, one of the country's largest independent real estate researchers.

China’s outstanding personal mortgages declined at a faster pace of 1.9% year-on-year at the end of March, as the protracted real estate downturn continues to weigh on demand.

The rate was 0.3 percentage points faster than a quarter earlier, resulting in a balance of 38.2 trillion yuan ($5.4 trillion) at the end of March, figures from the People’s Bank of China (PBOC) show.

It also marked the fourth straight quarter of decline in this key indicator of housing demand.

The southern city bordering Hong Kong loosened personal income tax and social-insurance payment requirements for home buyers in some districts, and said it would allow local families with two or more children to buy another home in some non-core districts, Xinhua Finance reported

To adapt to the significant changes in the supply and demand relationship in the real estate market and to support the revitalization of existing land resources, promoting the stable and healthy development of the real estate market, on April 29th, the Ministry of Natural Resources issued a notice regarding the relevant work of residential land supply in 2024.

In the notice, it is proposed to reasonably control the supply of new residential land for commercial housing. Local authorities should optimize the scale, layout, and structure of commercial and office land and residential land according to market demand in a timely manner. They should also improve the regulation mechanism for the supply of residential land corresponding to the turnover cycle of commercial housing and the stock of residential land. If the turnover cycle of commercial housing exceeds 36 months, the allocation of new residential land for commercial housing should be suspended. At the same time, efforts should be made to revitalize existing land resources until the turnover cycle of commercial housing decreases to below 36 months. For cities where the turnover cycle of commercial housing is between 18 months (exclusive) and 36 months, the principle of "revitalizing as much as supplying" should be followed. The maximum area of ​​newly allocated residential land for commercial housing should be dynamically determined based on the area of existing stock of commercial housing land revitalized within the year (including completed and recovered land).

为适应房地产市场供求关系发生重大变化的新形势，支持盘活存量土地，促进房地产市场平稳健康发展，4月29日，自然资源部发布《关于做好2024年住宅用地供应有关工作的通知》。

其中，通知提出合理控制新增商品住宅用地供应。各地要根据市场需求及时优化商业办公用地和住宅用地的规模、布局和结构，完善对应商品住宅去化周期、住宅用地存量的住宅用地供应调节机制。商品住宅去化周期超过36个月的，应暂停新增商品住宅用地出让，同时下大力气盘活存量，直至商品住宅去化周期降至36个月以下；商品住宅去化周期在18个月（不含）～36个月之间的城市，要按照“盘活多少、供应多少”的原则，根据本年度内盘活的存量商品住宅用地面积（包括竣工和收回）动态确定其新出让的商品住宅用地面积上限。

Second-hand home sales surpassed those of new homes by floor space last year for the first time since private property markets emerged in the 1990s, according to data from the China Real Estate Information Corporation.

China has released a plan to upgrade old urban infrastructure in major cities in a push to help build a more desirable living environment, according to a joint notice from the finance ministry and the country’s housing watchdog. Under the current plan, the first batch of cities this year — 15 in total — will mostly be megacities and big cities along the Yangtze River. Each province can recommend one city to participate, which will receive central government subsidies to help upgrade underground pipe and waste-water treatment systems, among other projects. Participating cities must meet three conditions. It must establish a working mechanism and working plan; the city must not undertake this project to add to invisible government debt; the city has not recorded any major safety incidents in recent years. After names are submitted, 现场答辩 an oral defense must be prepared by representatives from each city, after which scores will be assigned. The top 15 scoring cities will be announced. The winning cities, depending on their geographic location, will receive up to 800 million rmb to 1.2 billion rmb in 中央财政资金补助 central government subsidies.

More rural migrant workers are looking for jobs near their home, rather than working at factories in the Yangtze River Delta or Pearl River Delta regions, a report by the National Bureau of Statistics (NBS) shows.

The property sector’s downturn has significantly reduced the number of migrant workers it needs in construction and more rural workers are seeking jobs in the service sector in big cities, according to the 2023 report on migrant workers.

Last year, among nearly 300 million rural workers, about 40% worked near their home, while 60% left their hometown for employment, of which less than 40% went to another province, the report said.

While the total number of migrant workers increased by 1.91 million in 2023, the number working in construction fell by 6.5 million from the previous year, the largest reduction in five years, the data shows.

The survey covered more than 8,600 rural communities in 31 provinces, and randomly selected 40,000 households of rural migrant workers living cities.

On April 30th, the meeting of the Political Bureau of the Communist Party of China (CPC) proposed adapting development strategies to local conditions to foster new productive forces. It emphasized the need to strengthen the layout of national strategic scientific and technological capabilities, nurture and expand emerging industries, proactively plan for future industries, and employ advanced technologies to empower the transformation and upgrading of traditional industries. The meeting also emphasized the active development of venture capital and the enhancement of patient capital.

4月30日，中共中央政治局会议提出，要因地制宜发展新质生产力。要加强国家战略科技力量布局，培育壮大新兴产业，超前布局建设未来产业，运用先进技术赋能传统产业转型升级。要积极发展风险投资，壮大耐心资本

Patient capital, also known as long-term capital, is an important partner in the marathon of "hard technology." Market observers believe that patient capital provides stable financial support for the upgrading of traditional industries, the growth of emerging industries, and the development of future industries, making it an important "booster" for the development of new productive forces.

耐心资本也是长期资本，是陪伴“硬科技”长跑的重要搭档。在市场人士看来，耐心资本为传统产业升级，培育壮大新兴产业，建设未来产业提供稳定的金融活水，也是发展新质生产力的重要“助推器”。

The deployment of "strengthening patient capital" by the meeting of the Political Bureau of the CPC corrects the phenomenon of past short-term capital with its "fast in, fast out" approach in a timely manner. This holds significant importance for the high-quality development of venture capital and the cultivation of new productive forces. Tian Xuan, Vice Dean of the Tsinghua University PBC School of Finance, told Securities Daily that, firstly, it will guide the transformation of investment philosophy in the venture capital market towards long-termism, enhancing market vitality through a shift to "invest small, invest early." Secondly, it will further improve and strengthen the institutional system of patient capital, increase policy support, gradually improve the entire process system of venture capital market access, fund management, and exit channels, and create a better development environment for venture capital. Finally, it will increase government participation, guide more long-term funds into the market, focus on high-quality enterprises with genuine innovation attributes and long-term development potential, expand the scale of the venture capital market, and support the high-quality development of the real economy...

中共中央政治局会议对“壮大耐心资本”的部署，是对以往“快进快出”式短期资本现象的及时矫正，对于风险投资高质量发展和发展新质生产力具有重要意义。清华大学五道口金融学院副院长田轩对《证券日报》记者表示，首先，将引导风险投资市场转变投资理念，转向长期主义，提升“投小、投早”的市场活力。其次，将促进进一步完善壮大耐心资本的制度体系，加大政策支持力度，逐渐健全风险投资市场准入、基金管理、退出渠道等全流程制度体系，为风险投资创造更加优良的发展环境。最后，将加强政府参与力度，引导更多长期资金入市，关注真正具有创新属性和长期发展潜力的优质企业，壮大风险投资市场规模，助力实体经济高质量发展。

Patient capital can meet the development needs of new productive forces, providing stable capital support for technological innovation, the upgrading of traditional industries, and the cultivation of new industries, promoting high-quality economic development," Tian Xuan stated. Patient capital refers to long-term capital that can be stably invested, withstand higher risks, and traverse economic cycles. Strengthening patient capital is essential to fully leverage the role of capital, encourage entrepreneurial spirit, and cultivate the "craftsman spirit" of the capital market. This guides capital to adhere to "long-termism," expand the scale of long-term capital, invest in key areas and critical junctures of national strategic development, and support the development of the real economy.

“耐心资本可以满足新质生产力发展需求，为技术创新、传统产业升级、新产业培育提供稳定的资本支持，推进经济高质量发展。”田轩表示，耐心资本即指能稳定投入、可承受较高风险和穿越经济周期的长期资本。壮大耐心资本才能充分发挥资本作用，鼓励企业家精神，锻造资本市场的“工匠精神”。从而引导资本坚持“长期主义”，做大长期资本规模，投入国家战略发展的重点领域和关键环节，助力实体经济发展。

Venture capital, also known as entrepreneurial investment, is considered by market observers to be in line with the spirit of the recent meetings of the Political Bureau of the Communist Party of China (CPC), the Central Economic Work Conference, and the 2024 Government Work Report.

风险投资又称创业投资。在市场人士看来，此次中共中央政治局会议与中央经济工作会议精神和2024年《政府工作报告》一脉相承。

The Central Economic Work Conference held in 2023 proposed "encouraging the development of venture capital and equity investment." When explaining the spirit of the Central Economic Work Conference, relevant officials from the Central Finance and Economics Office stated, "By encouraging the development of venture capital and equity investment, we support more long-term capital and patient capital to be invested in technological innovation.

2023年召开的中央经济工作会议提出，“鼓励发展创业投资、股权投资”。中央财办有关负责同志详解中央经济工作会议精神时表示：“要通过鼓励发展创业投资、股权投资，支持长期资本、耐心资本更多地投向科技创新。”

On October 4, 2023, the European Commission published a notice of initiation of EU anti-subsidy investigations into EU imports of BEVs from China (the “EU Subsidy Probe”). Using the sampling method, the European Commission selected Geely Auto as one of the investigation targets of the EU Subsidy Probe, and Geely Auto is actively cooperating with the investigation."

A close assessment of the evolving thinking within China’s political leadership and security policy circles reveals that Chinese officials are not simply expanding their nuclear arsenal for military-technical purposes. Rather, Chinese leaders seem to have embraced the untested belief that nuclear weaponry grants them greater geopolitical leverage to counter perceived threats. Beijing’s objections to what it sees as an unfair U.S. nuclear strategy and illegitimate U.S. security interests further solidify its willingness to use unilateral measures to address its security concerns. Washington must understand how these underlying perceptions shape Beijing’s nuclear policy if it wants to steer the U.S.-Chinese relationship in a more prudent direction—or risk responding on the basis of flawed assumptions, with potentially counterproductive or even catastrophic results...

These nontechnical factors introduce obstacles to nuclear dialogue that are comple and poorly understood by observers outside China. American analysts and others in the West continue to narrowly fixate on the military-technical factors that have shaped China’s nuclear strategy in the past to explain the country’s current nuclear expansion. To be sure, Chinese strategists have expressed concerns for decades that U.S. homeland missile defenses, conventional precision strike weapons, and other nonnuclear technologies would make it more difficult for China to retaliate if it endured a nuclear first strike. But the United States has not significantly expanded its nuclear forces, conventional missile stockpiles, or homeland missile defense systems in recent years, suggesting that additional factors lie behind Xi’s decision to embrace nuclear expansion.

Most foreign analysts and policymakers fail to appreciate the extent to which China’s nuclear expansion is motivated by ambiguous political reasoning and muddled thinking and instead interpret it as being driven by an offensive military strategy.

China is rapidly expanding its nuclear arsenal even as arms control treaties are shredded. Can China and the U.S. come to the table and agree to nuclear arms control accords? Should Artificial Intelligence control nuclear weapons?

Guest: Tong Zhao; Chinese born nuclear expert now at Carnegie China in DC

An Australian pilot was forced to take evasive action after a Chinese military jet detonated flares close to a Navy helicopter that was operating in international waters near South Korea.

The Defence Department has described the actions of the J-10 Chinese Air Force plane as "unsafe and unprofessional" following the incident which took place in the Yellow Sea over the weekend.

On Saturday a MH-60R Seahawk which had launched from HMAS Hobart was intercepted by the People's Liberation Army-Air Force (PLA-AF) as it was taking part in a UN mission to enforce sanctions against North Korea.

CCTV: At a seminar held by a US think tank, Mark Lambert, US Deputy Assistant Secretary of State in the Bureau of East Asian and Pacific Affairs and China Coordinator said that Resolution 2758 does not endorse, equate to, or reflect an international consensus on the one-China principle and has absolutely no bearing on countries’ sovereignty choices with respect to their relationships with Taiwan. He said the resolution did not preclude Taiwan’s meaningful participation in the UN system and other multilateral fora and did not constitute a UN institutional position on the political status of Taiwan. What’s your comment?

Lin Jian: Mark Lambert’s remarks is a total distortion of the resolution and facts. They misrepresent the history, and tread upon the international law and basic norms of international relations. It is shocking and outrageous that a US State Department official overseeing China-US relations would speak so irresponsibly and brazenly tell and spread lies. The Chinese side has strongly protested to the US side on those remarks…

UNGA Resolution 2758 brooks no challenge, and the one-China principle is unshakable. To play the “Taiwan card” is to drive oneself into the wall

The death toll after a highway gave way in China’s rain-hit southern province of Guangdong has rise to 48, making it China’s deadliest road collapse incident in over a decade.

A section of the Meizhou-Dabu highway collapsed around 2am on Wednesday in Dabu county in Guangdong’s northern city of Meizhou. Around 18 metres (59 feet) of the mountainous highway crumbled into the forested slope beneath, causing vehicles to fall.

Guangdong Province in South China has started a province-wide comprehensive investigation of geological hazards in its highways, railways and waterways to eliminate hidden safety dangers, the province's transport authority said.

Top priorities have been given to strengthening the inspection and monitoring of the high-risk areas and highway sections where downpours hit frequently in the previous days, riversides, soft foundation sections, continuous steep downhill mountain roads, bridges and tunnels, sharp turns, steep and high slopes, according to a statement released by Guangdong provincial department of transport on Thursday.

While the results of an investigation into the mishap are still pending, a geological expert in Meizhou stated that prolonged heavy rain or excessive water could lead to soil saturation and the sudden loss of strength, potentially contributing to the collapse.

An on-site investigation by The Paper found that continuous heavy rainfall throughout April triggered multiple small-scale landslides near where the incident occurred, occasionally blocking roads in surrounding villages. Maintenance personnel from an adjacent national highway reported a recent increase in their workload due to numerous minor collapses.

According to official data, rainfall in Guangdong between January and April was significantly above average, measuring 641.7 millimeters — or 63% higher than the average for the same period in previous years. During this period, 11 cities in the province broke historical records for rainfall in April, with Meizhou experiencing an average rainfall 3.5 times higher than usual.

In an interview with our publication, several of the victims of this recent landslide accident worked at an auto parts market in Guangzhou. They usually don't have weekends off and can only return home during national holidays. For these villagers who are busy making a living and only return home two or three times a year, taking a shared ride home overnight during the May Day holiday is the most convenient and cost-effective way. Their original plan was to depart from the auto parts market on the evening of April 30th, expecting to arrive home by 3 a.m. on May 1st. "Leaving early to avoid traffic jams, and after arriving home, getting some sleep, they could spend time with their families the next day."

在本刊的采访中，此次塌方事故中的遇难者，有好几位都在广州一家汽配城工作，平日没有双休，只能在国家法定假日回家。对于这些忙碌于生存、一年只回两三次家的村民来讲，趁着五一假期连夜拼车回家是最方便也最划算的方式。他们原本的打算是，4月30日晚上从汽配城出发，预计5月1日凌晨3点就能到家， “早点出发不会堵车，到家之后睡一觉，第二天就能陪家里人”

In recent weeks, residents of the cities of Chongqing and Chengdu have been posting screenshots of their natural gas bills online and complaining of mysterious gas consumption spikes since the installation of new “smart” gas meters...

The topic quickly attracted nationwide attention. The Rednet Public Opinion Center, which tracks public opinion and online engagement, reported that as of April 16, the topic had racked up 219 million online interactions and 6.16 billion impressions on Chinese social media platforms. In Chongqing alone, as many as 26,000 residents complained to the local utility and local authorities about their gas bills. Chengdu’s local utility initially responded to consumer complaints by claiming that observations of rising gas prices were likely based on “mistaken perceptions.”

Amidst the glare of public controversy and an unusually high number of consumer complaints, local authorities in Chongqing opened an investigation into the billing increases. Less than a week later, at a press conference on April 19, Chongqing authorities announced that Che Dechen, Chongqing Gas Group’s general manager and Party secretary, had been removed from his post, and that Chongqing Gas and other local gas companies had indeed been overcharging their customers.