Chinese EV firms continue to sign cooperation agreements with EU automakers despite bloc’s protectionism

Chinese electric vehicle (EV) enterprises including Xpeng and Chery have continued to sign cooperation agreements with EU automakers despite the bloc's decision to impose temporary tariffs on Chinese EVs.

Industry insiders and experts said that the move highlighted China's opening-up for a win-win situation in strong contrast to the bloc's protectionism. They noted that China and the EU have promising prospects for cooperation in the EV sector and urged the EU to face up to healthy competition with Chinese car companies.

Xpeng announced on Monday that the company and the Volkswagen Group are expanding their platform and software cooperation to jointly develop zonal electric/electronic architecture, which will turn pure electric models of the Volkswagen brand into software-defined vehicles in China, according to a statement it sent to the Global Times.

Ralf Brandstätter, board member of Volkswagen AG for China, said in the statement that it is a clear proof of the excellent cooperation between Volkswagen Group China Technology Co and Xpeng. 

"This will not only strengthen the competitiveness of the company's global electric platform in China, but also reduce technological complexities and increase cost efficiency across the region," he noted.

"This collaboration between Xpeng and Volkswagen is a case of Chinese car companies exporting technology, which will lead to a win-win situation," Zhang Xiang, secretary general of the International Intelligent Vehicle Engineering Association, told the Global Times on Monday.

Chery and Jaguar Land Rover said on June 19 that they had signed a letter of intent covering strategic cooperation. Their joint venture company will launch and produce a series of electric products, equipped with Chery's electrification platform and using Jaguar Land Rover's authorized Freelander brand.

Leapmotor and Stellantis announced on May 14 that they had approved the establishment of Leapmotor International, a JV that is 51 percent owned by Stellantis and 49 percent by Leapmotor.

The JV has the exclusive right to conduct export and sales operations of Leapmotor vehicles to all other markets outside of China, as well as the exclusive right to produce the company's vehicle products locally.

Zhang said that compared with the EC's political aim of cracking down on Chinese EVs, European carmakers can directly feel the detrimental effects of the bloc's temporary tariffs on mutual cooperation. That's why European companies continue to strengthen cooperation with China despite pressure from the EU.

Chinese carmakers have mastered the core technology of new-energy vehicles with a high degree of intelligence, which can provide European consumers with cost-effective EVs, while building factories overseas can drive the development of the local industry chain, the expert noted.

While China continues to share its EV technology with the world, Chinese car companies are protesting the EU's protectionism and defending their rights and interests.

According to a statement sent to the Global Times on Monday, SAIC Motor Corp submitted its defense against the EC's anti-subsidy preliminary ruling at a hearing held by the EC on Friday, noting that it reserves the right to take further legal measures in response to the EC's unfair preliminary ruling.

During the hearing, the company noted that the EC's investigation involves commercially sensitive information, such as a request for cooperation in providing chemical formulas related to batteries, which is beyond the normal scope of the investigation.

"Open competition leads to progress, while protectionism will only result in backwardness. It is hoped that China and the EU will accelerate the cohesion of innovative forces through win-win cooperation and create global green development," the company said.

In the so-called investigation and evidence-gathering process on the European side, Europe embodies an increasingly unilateralist approach that the bloc has strongly opposed previously, said Cui Hongjian, a professor at the Academy of Regional and Global Governance under Beijing Foreign Studies University.

Since China is an important trading partner for Europe, disputes should be resolved as peacefully as possible and in a legally compliant manner, Cui told the Global Times, noting that establishing close cooperation with China is the best long-term solution for the development of the European industry.

China's economy on track for stable growth

China's economy is on track for stable growth, with strong policies and reforms needed for a sustainable economic recovery, a Chinese official said following a key meeting to draw up the next blueprint for China's economy.

Han Wenxiu, executive deputy director of the Office of the Central Committee for Financial and Economic Affairs, made the remarks at a press conference on Friday, providing an overview on the guiding principles from the third plenary session of the 20th Communist Party of China (CPC) Central Committee.

Analysts believe that reform measures adopted during the plenum will provide a boost to China's economic growth and instill confidence in the market. They anticipate that policy measures aimed at stimulating domestic demand and promoting the development of new quality productive forces will be implemented.

China's economy is currently showing signs of stable and healthy development, with key macroeconomic indicators meeting market expectations. However, there are still challenges such as insufficient effective demand, difficulties in business operations for some companies, and financial challenges for certain pockets of the country, which required targeted policy effort and reforms, Han said.

The remarks came after the plenum emphasized the unwavering commitment to achieving the 2024 social-economic development goals and responded to questions of a "temperature difference" between China's booming macro data and experiences of individual businesses and industries in the Chinese economy.

During the press conference, Han highlighted the importance of ensuring the stable and healthy growth of the real estate market, promoting the rapid development of emerging and future industries, boosting domestic demand and stabilizing employment, in boosting the sustained growth of Chinese economy.

There is still considerable room for high-quality development in China's real estate sector as China's new urbanization advances. Efforts will be made to ensure delivery of homes, eliminate modes of excessive debt, high turnover, and high leverage, while better meeting the needs of genuine homebuyers, Han said.

Efforts should also be made to cultivate and strengthen emerging industries and establish investment mechanisms for emerging industries, as highlighted by the third plenum, Han said.

Han also emphasized on expanding domestic demand, particularly consumer spending, leveraging the advantages of China's large-scale market to boost consumption and investment.

The Chinese government has expressed a willingness to proactively boost domestic demand. We expect that efforts will be made to put in place stimulus policies aimed at expanding domestic demand, improve employment environment and maintain stable growth, Darius Tang, associate director of Corporates, Fitch Bohua, told the Global Times in a statement on Friday.

New quality productive forces driven by artificial intelligence, biomedicine, and advanced manufacturing will continue to facilitate the successful transformation and upgrading of China's economic structure, Tang said.

Efforts will be made to build a unified national market, including the development of a unified urban-rural construction land market, a nationwide integrated technology and data market, and a unified national electricity market, Han added

China will also make institutional improvements to facilitate high-quality and full employment, and enhance the development of the aged care industry.

"We expect that China will increase investment in the fields of education, healthcare and pension that are directly linked to people's livelihoods and well-being, boost consumer confidence and convert current excessive household savings into new forms of consumption," Tang said.

The third plenum has adopted a resolution which puts forward more than 300 important reform measures, all of which involve reforms on the levels of systems, mechanisms, and institutions.

The third plenum has provided a boost and confidence for China's modernization goals. The emphasis on promoting market vitality and establishing a unified national market, as well as prioritizing the well-being of the people, will likely lead to new growth opportunities and measures to promote the wellbeing of the people, He Weiwen, a senior fellow from the Center for China and Globalization, told the Global Times on Friday.

"The reforms outlined in the third plenum are both forward-thinking and practical, and are expected to have a positive impact on the economy in the second half of the year," He said.

China's GDP expanded 5 percent to reach 61.68 trillion yuan ($8.49 trillion) in the first half of 2024, data from the National Bureau of Statistics showed, demonstrating the resilience and innate strength of the world's second-largest economy.

Third Plenum to propel China toward new historic achievements

Editor's Note: The Communist Party of China (CPC) will convene, on July 15 in Beijing, the third plenary session of its 20th central committee, which is expected to focus on deepening reform and advancing Chinese modernization. John Ross, senior fellow at Chongyang Institute for Financial Studies, Renmin University of China, shared his perspectives with the Global Times (GT) on his expectation on the upcoming meeting.

GT: How do you assess the significance of the coming Third Plenum for China's economic development and reform over the next decade, as the country faces growing geopolitical complexity in the world?

John Ross: The upcoming plenum is of great significance for both domestic and international reasons. Domestically, China has already achieved its first centenary goal - building a moderately prosperous society in all respects by its national standards. If China manages to double its per capita income by 2035 compared to 2020, it will well exceed the threshold for a high-income economy by international standards.

The living standards, life opportunities, demands, and expectations of China's population will have increased enormously. The Chinese economy will correspondingly become far more diverse and sophisticated. Achieving such a transformation in a country with 1.4 billion people - surpassing the combined populations of all other high-income economies - will stand as an unprecedented achievement in human history. This historical perspective underscores the profound significance of the plenum.

GT: In light of the opportunities and challenges ahead for China's economy, how do you anticipate the plenum will guide and advance economic reforms in critical areas such as technological innovation, capital market regulation, and accelerate the private sector, real estate, and opening-up? 

John Ross:  China's transition to a high-income economy requires a sustained increase in high-quality productivity, achievable only through substantial investments in research and development and the application of its outputs. This shift is already being realized in multiple sectors such as telecommunications, green industries, high-tech products such as drones, and social platforms.

The plenum will need to set forth guidelines for the widespread adoption of these advancements throughout the entire economy. China's technological leadership in these and other industries forms the foundation for its evolving role in the global economy and consequently as a leading technological innovator in its opening-up policies.

GT: How do you evaluate the role of the CPC's leadership and institutional advantages in contributing to the country's economic achievements and future development?

John Ross: The remarkable transformation of China, from being one of the world's poorest countries in 1949 to emerging as the world's second-largest economy within just over 70 years is entirely credited to the pivotal role and visionary leadership of the CPC. No other political party in the world can claim a comparable achievement. This stands as an objective fact.

GT:  What are your expectations regarding the plenum's role in advancing China's distinctive modernization?

John Ross: Throughout each phase of its journey the country has consistently encountered diverse and evolving challenges. The CPC's resilience and vitality are evidenced by its ability to devise precise and effective responses to these challenges at every turn, as evidenced by the significant milestones achieved in China's economic and social advancement. Looking ahead, I am confident that the upcoming Third Plenum will mark another crucial step forward in this on-going transformative process.

Wary responses to India's 'softening' on obstructing visa for Chinese citizens

Chinese industry insiders and experts said India's reported plan to make it easier for Chinese citizens to get visas to visit India is positive for people-to-people exchanges between the two countries, which is facing a surge in demand in the post-pandemic era.

The remarks were made in response to media reports that the Indian government is making preparations to cut down visa delays for Chinese technicians, under the pressure of the country's business groups, Bloomberg reported on Wednesday.

However, Chinese engineers and technicians are largely wary. 

An executive from a Chinese technology company told the Global Times on Thursday that the news has been circulating for a while, but it depends on when the Indian authorities will heed to the calls from the civilian sectors and take concrete steps to lessen such curbs. "In fact, in recent months the Indian government has tightened the review process for visa extensions for Chinese citizens working in India."

"The Indian government treated the issuance of visas to Chinese citizens as a bargaining chip," the person said on condition of anonymity.

There has been a rather unfair approach being practiced by New Delhi. Visa applications submitted by companies from China's Taiwan Island, or companies of a joint venture, were processed on an expedited basis to help the Indian authority to realize its ambition to build India into a semiconductor manufacturing hub, the person said. "In contrast, a very lengthy process of application is awaiting Chinese nationals."

According to Bloomberg, the Indian Department of Promotion of Industry and Internal Trade is working with the ministries of home and external affairs to lay a framework that will fast-track visas for the engineers and technicians from China, with the aim to cut down the visa processing time to within 30 days from the four to five months it currently takes. 

India used to put in place a blanket restriction on visa application by Chinese nationals after bilateral ties soured under Prime Minister Narendra Modi's government since the two countries' border clash in 2020.

Chinese analysts called for New Delhi to drop its restrictive visa practices, which they refer to as a "double-edged sword" that both served the Indian purpose to look tough on China, but actually undermined its economic interests.

"China and India, the two largest developing countries in the world, are facing a surge in demand in people-to-people exchanges," Dai Yonghong, director of Institute of Area and International Studies, Shenzhen University, told the Global Times on Thursday. "Regrettably, such a demand has been suppressed by the Indian authority's visa restrictions."

Despite frayed ties, India still imports a lot of equipment from China, and many of these machines need technicians and engineers to operate and repair.

A report published by the Economic Times in June said that Indian electronics manufacturers have suffered $15 billion in economic losses and 100,000 job cuts due to escalating tensions with China. Visa delays for Chinese executives are hindering the industry's expansion plans, leading to a $10-billion export loss and $2 billion in value-added loss.

A Chinese national who recently returned from India told the Global Times that he once saw two Chinese engineers were maintaining a machine at an Indian industrial plant that needs 20 people to maintain, resulting in production efficiency being held back.

Local media estimated that India issued just 2,000 visas to Chinese nationals in 2024 from about 200,000 before the pandemic in 2019, according to Bloomberg.

Visa facilitation is an important component in a country's opening-up and business environment, streamlined visa application process increases a country's appeal to business community, investors and tourists, Dai noted, calling the Indian government to scrap visa restrictive measures for Chinese technicians, as well as Chinese government officials, scholars and tourists.

The complementarity between China and India in industrial cooperation is greater than that of India and Western developed economies, and China's advantages in technology, capital and management expertise can be of great use to India, Dai said. 

"The Indian government needs to work on improving its business environment, so as not to hamper its industrialization, manufacturing sector upgrade and overall competitiveness," Dai said.

"I think the Indian government is wise enough to realize that the West may be not willing to give it the best of their technologies, capital and management," Dai said. "China should be the more suitable choice as a partner."

Carbon-Negative Sea Island: Say Goodbye to “Coal and Fire” and Enjoy “Light and Electricity”

Lingshan Island is covered in green grass, lush trees, singing birds, and fragrant flowers in the summer. The sound of laughter resounds endlessly, and most of the tourists on the island come to see the "carbon-negative sea island".
How did they achieve “Carbon-Negative”?

Carbon emission reduction is not an easy task, and the core of it is “electricity”. To change the way of life and production of the islanders, it is important to ensure that the island has a safe and reliable power supply.

To protect the safe and reliable operation of the island power supply, the State Grid Qingdao Huangdao District Power Supply Company developed an innovative Submarine Cable Inspection Robot, which has increased inspection efficiency from the traditional 0.2 kilometers per hour to 3.2 kilometers. This changed the “fault repair” of submarine cables to “full monitoring.”

The State Grid Qingdao Huangdao District Power Supply Company developed an innovative Submarine Cable Inspection Robot in action.

In addition, since 2020, the State Grid Qingdao Huangdao District Power Supply Company has fully implemented the Lingshan Island distribution network renovation project, completing 12 low-voltage substation upgrades and replacing 7.8 kilometers of overhead wires.

What are the benefits of “Carbon-Negative”

The “Carbon-Negative” sign has promoted the steady improvement of Lingshan Island’s cultural tourism industry, forming a tourism aggregating effect.

To ensure reliable power supply throughout the tourist season, Gu Yongjun, Miao Zaiwei, and Xiao Yonglei, grid managers of the Qingdao Huangdao District Power Supply Company of SGCC, carry out safe electricity inspection at each hostel every day before the peak of electricity consumption, helping to timely eliminate hidden dangers.

This year marks their 33rd year working on the island. “We are busier during the tourist season. It is hard, but we can see the whole island becoming more and more beautiful, and everyone's life getting better and better and that makes it all worth it, and we all feel proud of the work.” Gu Yongjun said.

Chinese Embassy refutes wrongful China-related claim by Swedish politicians, urging Sweden not to fabricate false narratives

The Chinese Embassy in Sweden refuted on Friday the erroneous remarks made by some Swedish politicians related to China on the Russia-Ukraine conflict, South China Sea issue and Taiwan question. The Chinese Embassy urged Sweden not to mirror China with the template of "a major country must be hegemonic," not to misjudge China by the trajectory taken by the Western powers, and not to fabricate false narratives designed to smear China.

According to the embassy, some Swedish politicians have stated that if Russia wins in its conflict with Ukraine, it will “encourage China to seize territory from other countries.” They also smeared China by claiming that the Philippines and Vietnam “are facing pressure from China” in the South China Sea, and that the island of Taiwan “is at risk of invasion” from mainland.

The Chinese Embassy refuted the attacks, clarifying that the Swedish side's remarks are filled with Cold War mentality and ideological prejudice, making baseless accusations and attacks targeting China, which China strongly protests and firmly opposes.

It is known to all that China has adhered to the path of peaceful development, has never aggressed against any country, never interfered in the internal affairs of other countries, and never undermined the sovereignty and territorial integrity of other countries. China has always been committed to an independent foreign policy of peace, adhered to developing friendly cooperation with other countries on the basis of the Five Principles of Peaceful Coexistence, and firmly pursued the strategy of openness, development and mutual benefit. China is not a threat to any country, but a force for peace and stability in the international community, a spokesperson from the Chinese Embassy said.

The spokesperson reiterated that there is only one China in the world, and Taiwan has never been a country, but an inseparable part of Chinese territory. The one-China principle is a universal consensus in the international community and a basic norm in international relations, and it is also the political foundation for China to establish and develop diplomatic relations with all countries, including Sweden. 

The Taiwan question and the Ukraine issue are fundamentally different and cannot be compared, said the spokesperson, noting that the Taiwan question is China's internal affair, while the Ukraine issue is a dispute between Russia and Ukraine as two separate countries. 

The spokesperson added that equating the Taiwan question with the Ukraine issue is tantamount to distorting the cross-Straits relations as relations between two countries, creating "two Chinas" or "one China, one Taiwan," which is essentially challenging the one-China principle, undermining China's sovereignty and territorial integrity, interfering in China's internal affairs, and seriously violating international law and basic norms of international relations.

China urged the Swedish side to fully recognize the seriousness and sensitivity of the Taiwan question, earnestly adhere to the one-China principle, stop spreading irresponsible false statements, and take actions conducive to the stability of the Taiwan Straits and the development of world peace, the spokesperson said.

On the South China Sea issue, the Chinese Embassy noted that the matter is between China and several ASEAN members, and that China insists on negotiating and resolving maritime disputes with the directly involved parties, while firmly opposing to any maritime infringements and provocations. 

With the joint effort of China and ASEAN members, the overall situation in the South China Sea remains stable. China is willing to continue working with ASEAN members to build the South China Sea into a sea of peace, friendship, and cooperation, the spokesperson said.

“We urge countries outside the region, including Sweden, to play a constructive role in maintaining regional peace and stability, and not to provoke trouble or become disruptors and troublemakers in the South China Sea,” the spokesperson noted.

Colonial references in Hong Kong laws make their exit, hailed by legal representatives as 'necessary move'

After the British Union Jack, which had flown over Hong Kong for more than 150 years, was lowered for the last time on June 30, 1997, terms such as "Her Majesty" and "Governor," which had persisted in various Hong Kong laws, finally made their exit on Wednesday. 

Some legal representatives in the Hong Kong Special Administrative Region (HKSAR) hailed it as necessary legal reforms to remove such outdated colonial references and fill gaps in the law.

The Legislative Council (LegCo) of the HKSAR passed the Statute Law (Miscellaneous Provisions) Bill 2024 in its third reading, officially removing terms like "Her Majesty," "Governor," from the legal texts of several Hong Kong laws.

The bill is divided into 15 parts, with the most notable being Part 14, which concerns amendments made for legal adaptation, according to media reports.

The modifications in Part 14 include replacing "Her Majesty, her heirs and successors" with "the Central People's Government or the Government of the HKSAR in accordance with the Basic Law and other laws"; "Governor" with "Chief Executive"; and "Governor in Council" with "Chief Executive in Council." 

In an interview with Yangcheng Evening News, Deputy Secretary for Justice of HKSAR government Cheung Kwok-kwan said that the Part 14 was proposed by different policy bureau of the Hong Kong government, including the Department of Justice, suggesting amendments to various expressions and provisions in statutory laws. Most of the proposed amendments are of a terminological or technical nature. 

The purpose of the legal adaptation amendments is to ensure that certain provisions or expressions in ordinances and subsidiary legislation in force before July 1, 1997, conform to the Basic Law of Hong Kong and reflect Hong Kong's status as a SAR of the People's Republic of China, appropriately mirroring the policy intentions of the relevant policy bureau.

"The issue of inaccurate legal terminology has existed for many years and should have been addressed long ago," Chan Man-ki, a deputy to the National People's Congress and a member of the LegCo, wrote to the Secretary for Justice of the HKSAR government and the Chairman of the Legislative Council's Panel on Administration of Justice and Legal Services in September 2022, urging the acceleration of the "decolonization" of local laws. 

On Wednesday, Chan Man-ki told Yangcheng Evening News that the long-term presence of colonial-era legal provisions in Hong Kong posed a significant obstacle to the implementation of patriotic education. 

This amendment directly adapts expressions that do not conform to the constitutional status of the HKSAR, such as deleting terms like "Her Majesty" and "Governor," and this amendment effectively and swiftly implements the "decolonization" of local laws, correctly reflecting the constitutional order of the HKSAR, Chan was quoted as saying in the media report. 

"I believe this amendment will enable Hong Kong's local laws to keep pace with the times," Chan said. 

Willy Fu, a law professor who is also director of the Chinese Association of Hong Kong & Macao Studies, welcomed and supported the second and third readings of the bill.

27 years after Hong Kong's return to the motherland, it is necessary to undertake legal reforms to remove these outdated colonial references and fill gaps in the law, Fu said, noting that this is a necessary and appropriate measure that deserves support. 

Hong Kong residents should set aside their colonial nostalgia, unite, and fully support the SAR government's lawful administration. By relying on the motherland and connecting with the world, Hong Kong can leverage its unique advantages, integrate into the national development agenda, boost the economy, pursue development, and benefit people's livelihoods, Fu noted. 

"Hong Kong can achieve a renaissance, faithfully implementing One Country, Two Systems and steadfastly maintaining its prosperity and stability. The future of Hong Kong will certainly be brighter," he said. 

Terms such as "Her Majesty," "royal family," and "loyalty" might lead to misunderstandings that Hong Kong has not fully returned to the motherland in many aspects, potentially forming long-term misconceptions about One Country, Two Systems, Priscilla Leung, Chairperson of the LegCo's Bills Committee, was quoted as saying in media reports on Wednesday.  

Hong Kong was a member of an international treaty in 1989, but has since ceased to apply the relevant regulations. Revising them after 35 years is hard to accept, and Leung said that she hopes that all departments will expedite their work to complete the adaptation process as soon as possible.  

Aircraft carrier Shandong spotted launching far seas drill amid China-Russia joint maritime patrol

China's Shandong aircraft carrier group reportedly started its first far seas exercise of the year after it was spotted on Tuesday operating in the West Pacific, where another group of Chinese and Russian warships are conducting a joint maritime patrol.

Amid Taiwan Straits and South China Sea tensions, as well as the US-led RIMPAC 2024 exercise that blatantly targets China, Chinese naval activities, not aimed at any other country, serve to enhance combat capabilities and deter unstable security factors, experts said on Wednesday.

The Chinese People's Liberation Army (PLA) Navy's aircraft carrier Shandong, the Type 055 large destroyer Yan'an, the Type 052D destroyer Guilin and the Type 054A Yuncheng were spotted sailing in the Philippine Sea on Tuesday, the news website of the US Naval Institute reported on the day, citing a news release from Japan's Ministry of Defense Joint Staff.

The Japanese news release said that the Shandong was observed conducting flight operations with its fighter aircraft and helicopters.

The Chinese aircraft carrier group was spotted sailing in the South China Sea near the Philippines in June, and analysts said that the carrier likely sailed from the South China Sea via the Bashi Channel to the south of the island of Taiwan into the Philippine Sea in the West Pacific.

A release by the defense authority on the island of Taiwan said that it spotted 37 PLA aircraft of various types around the island conducting air-sea joint training along with the carrier Shandong and other PLA Navy vessels on Wednesday.

It marks the first time the Shandong has embarked on a far seas exercise beyond the first island chain this year, observers noted, further mentioning that they are looking forward to seeing if the carrier will make new breakthroughs in terms of training intensity, new tactics practiced and new locations reached.

The aircraft carrier Shandong and its escorts are not the only PLA Navy warships currently operating in the West Pacific.

Citing the Russian Pacific Fleet, Russian News Agency Tass reported on July 4 that the Russian corvette Sovershenny joined the PLA Navy's Type 052D destroyer Yinchuan, Type 054A frigate Hengshui and Type 903 replenishment ship Weishanhu at a designated meeting point to commence the fourth joint Russia-China maritime patrol in the Asia-Pacific region since 2021 to bolster naval cooperation and maintain peace and stability.

The joint group is set to conduct anti-submarine and air defense drills and practice search and rescue measures at sea during their joint patrol, Tass reported.

The China-Russia joint group was spotted entering the West Pacific from the East China Sea via the Osumi Strait from July 4 to 5, according to Japan's Ministry of Defense Joint Staff.

Additional PLA Navy warships, including the Type 055 large destroyer Lhasa, the Type 903A replenishment ship Kekexilihu, the Type 052D destroyer Kaifeng and Type 054A frigate Yantai, also entered the West Pacific by July 1. They first entered the Sea of Japan from the East China Sea via the Tsushima Strait, then entered the West Pacific via the Tsugaru Strait, two separate news releases by Japan's Ministry of Defense Joint Staff said.

China has yet to officially announce these naval activities. Observers wonder if there is a link between the aircraft carrier Shandong's far seas exercise and the China-Russia joint patrol, reflecting on possible training objectives, and where the warships would travel to, considering the ongoing security tensions over the Taiwan question and the South China Sea issue, and that the Chinese and Russian naval activities are coinciding with the US-led RIMPAC exercise being held around Hawaii Islands, with China believed to be set as an imaginary enemy.

Zhang Junshe, a Chinese military expert, told the Global Times on Wednesday that the China-Russia joint maritime patrol has become regular occurrence, and such activities can further consolidate the strategic mutual trust between the two countries and the two militaries.

It is not impossible that the Shandong carrier group and the China-Russia joint group join force in the West Pacific waters to conduct mock confrontation drills or joint defense drills, Zhang said.

In addition to traditional areas such as the East China Sea, the West Pacific and the North Pacific, it cannot be ruled out that the groups could sail to regions farther away, such as the East Pacific and South Pacific, which completely conforms to the international law and practices, Zhang said.

The Chinese drills combined with the China-Russia joint patrol are completely different from the US-led RIMPAC exercise, as they are not targeted at any other country. The RIMPAC, on the other hand, is obviously simulating a scenario in which the US militarily interferes in the Taiwan question in case of a conflict, analysts said.

Another Chinese military expert, who requested anonymity, told the Global Times on Wednesday that while the PLA Navy's exercises and drills are prescheduled and are not related with the ongoing situations, they contribute to regional peace and stability by deterring unstable factors and provide strategic power balancing.

The goal of any exercise should be enhancing combat capabilities and safeguarding national sovereignty, territorial integrity, security and development interests, the expert said.

China takes fast, effective move to solve payment difficulties of international arrivals, facilitate foreigners’ stay

When Lucas Fan received his friend Jim in Beijing in June 2023, Lucas had to order a taxi for Jim every time he needed one as Jim, from Ireland, could not link his international bank card with WeChat or Alipay payment functions. As the two main social networking apps in China, WeChat and Alipay are virtually indispensable in nearly every aspect of daily life, from chatting, working to shopping, and from taxi-hailing to making electronic payments.

But had Jim pushed his visit back by a month, he would have found it more convenient to travel as a foreigner in China. Alipay and WeChat Pay started to comprehensively upgrade their systems in July 2023 to optimize support for international bank cards to better serve a growing number of international travelers along with bolstering international exchanges.

According to official data, in 2023, the national border inspection authorities checked in a total of 210 million inbound travelers, recovering to 62.9 percent of 2019 levels and the number is expected to continue to grow in 2024.

"This [payment difficulty of foreigners] is indeed an unexpected new problem as mobile payment has developed very rapidly in China," Sun Yeli, Chinese Minister of Culture and Tourism, told domestic and foreign journalists after the closing of China's annual national legislative session in Beijing.

Sun noted that the Chinese central authorities have paid great attention to this issue and have established a coordination mechanism to solve it.

"We are optimizing each step of the inbound tourism process, streamlining procedures ranging from visa applications to flight arrangements, hotel check-ins, shopping, and sightseeing. With the implementation of these measures, foreign tourists visiting China will enjoy the same level of convenience in accommodation, transportation, and shopping as domestic tourists," Sun said.

"We sincerely welcome tourists from all over the world to visit China, enjoy the charm of Chinese culture, discover rapid changes in the country, and experience the hospitality of the Chinese people," Sun noted.
Get through 'reverse digital divide'

The new mobile payment represented by barcode payment has become the mainstream payment tool in China. However, in most countries around the world, especially in some developed economies, bank cards are still the mainstream payment tool.

In recent years, with the rapid development of informatization and digitization in China, the popularity of mobile payment has increased rapidly. Now, the popularity of digital payment in China may be twice as high as in other countries. And everyone in the country is very accustomed to using a mobile phone for all aspects of life. However, this has made China too "digitized" to be "out of touch" internationally. Some people say that this has created a "reverse digital divide" between China and foreign countries.

One main difficulty for foreigners in making mobile payments lies in the low success rate of overseas individuals using Alipay and WeChat to link overseas bank cards, as well as payment limits.

When overseas users enter China and want to link a third-party payment app, they need to provide real-name information. Some overseas users may be unwilling to provide their personal information for personal privacy concerns. In addition, the transmission of cross-border information is a long-standing difficult issue even in the traditional financial area due to different principles and rules in various countries in the issue.

Aside from mobile payment, foreigners were also reported to encounter obstacles in using cash and international cards in China. A typical example of this is foreigners like Jim who had difficulties in hailing and making payments in taxis in China, as due to the popularization of online payment, most Chinese taxi drivers receive orders on car-hailing apps and present a QR code to passengers to effect payment. Fewer and fewer of them handle cash, not to mention POS devices.

"Taxis are often the first local service that overseas business people and tourists come into contact with after arriving, and it is also one of their main ways of getting around the city. However, payment difficulties are particularly prominent in taxis," Yang Guoping, chairman of the Shanghai Dazhong Transportation Group and a representative to the 14th National People's Congress, told China Business Journal.

High transaction fees are also another obstacle. The single transaction fee for foreign card payments is basically between 2.5 percent to 3.5 percent, with VISA and MasterCard having a single transaction fee of around 3 percent, while the single transaction fee for domestic cards is around 0.6 percent, and mobile payment fees are even lower, with Alipay at 0.38 percent, according to a report published by yicai.com.

Many domestic merchants are not willing to pay high cross-border credit card transaction fees, but rather encourage foreign tourists to use cash, Alipay, or WeChat Pay, according to the report.
Step up efforts to address problems

Facing these problems, Chinese authorities and platforms are moving fast to address the obstacles to help facilitate foreigners' stay in the country.

On February 23, the State Council executive meeting reviewed and approved the "Opinions on Further Optimizing Payment Services to Facilitate Payments," (referred to as the "Opinions"), emphasizing the need to focus on the payment inconvenience of groups such as the elderly and foreigners coming to China.

On February 29, the People's Bank of China held a meeting to promote the optimization of payment services. On March 1, the State Council Information Office held a regular policy briefing on further optimizing payment services and enhancing payment convenience.

Zhang Qingsong, Deputy Governor of the People's Bank of China, introduced the specific content of the above mentioned "Opinions," including promoting the improvement of the bank card acceptance environment and adhering to the positioning of cash as the bottom line, among others.

On the evening of March 7, the "Opinions" were officially released, closely followed by implementations by various platforms like Alipay and WeChat Pay.

If Jim came to Beijing now, whether arriving at the Beijing Capital International Airport (PEK) or the Daxing International Airport, he could go directly to a service center outside the international arrival gate and seek help from staff to install Alipay or WeChat.

He could also directly withdraw RMB from the ATMs beside the service desk if he did not wish to bother with buying a Chinese phone card or had worries about personal information security. The service center could also provide him with smaller bank notes if necessary.

If he uses Alipay with real-name registration, he would be able to make a single transaction with a maximum limit of $5,000 and a maximum annual transaction limit of $50,000.

If Jim was a first-time user of WeChat Pay from abroad, he could also directly add his international bank cards to quickly activate the WeChat payment function without needing to buy a Chinese phone card. By linking an international card, he could use WeChat Pay in China within a certain amount of spending without verification.

As one of China's most international metropolises, Shanghai led the charge in providing international visitors with convenient payment services.

Since late 2023, Shanghai has taken the lead in installing over 36,000 points of sale (POS) machines that can accept foreign bank cards in commerce, cultural, and tourism sites, airports, and railway stations throughout the city, according to the Shanghai government website.

Near Yuyuan Garden, one of the most popular tourist sites in downtown Shanghai, small boards that read "Visa, Master, JCB… now available" are seen on the cashier counters of most shops and restaurants there. According to a cashier at a three-story shop selling souvenirs, clothes, and skincare products, the shop started offering foreign bank card payment services in November 2023, when Shanghai hosted the 6th China International Import Expo.

This improvement has particularly excited many foreign excursionists, who have little time to withdraw cash or get used to China's digital payment systems.

"I can't wait to directly pay with my bank card; that's much better and convenient for us international visitors," a Japanese college student told the Global Times ahead of the Chinese New Year in February. She planned to have a week-long stay in this city.

According to yicai.com, the coverage rate of key merchants accepting foreign cards in Shanghai and neighboring Zhejiang Province in East China has exceeded 90 percent.
Determined to further open up

According to media reports, by 2023, millions of foreigners in China had used mobile payments and truly enjoyed the convenience. In the fourth quarter of 2023 particularly, the scale of mobile payment transactions by inbound travelers significantly increased, with a total of 35 million transactions amounting to 5 billion yuan ($695.6 million).

By taking multiple measures to improve the convenience of mobile payment, it is not only an important starting point for Chinese mobile payment to go global, but also a vital part of China's recent efforts to expand international exchanges, including tourism and trade, experts pointed out.

Improving the convenience for foreign nationals to work and study in, and travel to China has been included in the Report on the Work of the Government (2024) announced during the just concluded two sessions.

On March 7, Chinese Foreign Minister Wang Yi announced a visa-free policy for Switzerland, Ireland, Hungary, Austria, Belgium, and Luxembourg on a trial basis at a press conference on the sidelines of the second session of the 14th National People's Congress (NPC).

In January, China had already announced five measures, including shortening visa application forms, lowering visa fees for the entire year, exempting some applicants from fingerprinting, providing walk-in without appointment visa application services, and extending a unilateral visa-free policy to a select number of countries including France and Germany on a trial basis.

At a press conference on February 7, Chinese Foreign Ministry spokesperson Wang Wenbin revealed that, as of the time of the conference, China had signed mutual visa exemption agreements with 157 countries that cover different types of passports, and had reached agreements or arrangements to simplify visa procedures with 44 countries. China has a complete mutual visa exemption with 23 countries.

These measures show China's determination and concrete efforts to keep opening up, experts noted.

They proposed to continue to expand the scope of visa exemptions so that more foreign travelers can get a chance to enjoy China's large and diverse landscapes, the convenience brought by the 5G network and high-speed bullet trains, and understand China through first-hand experience rather than some second-hand biased reporting.