Many areas across China have commenced construction of mega projects since the Chinese Lunar New Year holidays, including industrial upgrading, infrastructure and energy projects, in a boost for the ongoing economic recovery, according to media reports on Monday.
On Monday, authorities in East China's Shandong Province held a meeting to promote the construction of major projects, with construction work for more than 1,000 projects started, China Media Group reported.
The projects involve a total investment of about 1.21 trillion yuan ($167.84 billion), according to local media reports in Shandong. Among the projects, 660 were for industrial upgrades and 156 for transport and other infrastructure. In terms of funding, 600 projects were invested in by private enterprises and 338 were carried out by state-owned enterprises.
Shandong is not alone in expediting major investment projects, as work resumed after the Chinese Lunar New Year holidays. In East China's Zhejiang Province, construction work has also commenced on 333 projects with a total investment of 977 billion yuan. In Beijing, 160 projects with a total investment of 247.8 billion yuan are expected to be launched in the first quarter of 2024.
The accelerated implementation of major projects across the country is expected to offer a great boost for investment, which remains a major economic driver, in the first quarter of 2024. This in turn will help support the economic recovery.
Relatively slow growth in investment has weighted on China's economic recovery. In 2023, total fixed-asset investment only grew by 3 percent year-on-year, compared to 5.1 percent growth in 2022. Some economists have forecast that fixed-asset investment could grow around 5 percent in 2024.
Private investment is also vital for driving overall investment, and Chinese localities have stepped up support for private businesses, especially since the Chinese Lunar New Year holidays.
Shandong has taken various measures to support the resumption of work at private businesses following the Chinese Lunar New Year holidays. For example, on Monday, State Grid Yantai Power Supply Co, the local branch of the state-owned power giant, dispatched a special working group to a local firm, Laizhou Sanli Auto Parts Co, which exports auto parts to Europe, North America and many other regions, to help the firm with issues in using electricity.
The China Chamber of Commerce to the EU (CCCEU) on Friday launched a financial working group and held a forum on cross-border yuan payment and trade cooperation, aiming to strengthen China-EU financial collaboration, even as businesses seek to navigate challenges posed by increasing trade protectionism in the EU.
The new working group, following the digital and green working groups, represents the CCCEU's third working group and its first outside its Brussels headquarters. It underscores the Chamber's dedication to enhancing the presence of Chinese enterprises in the EU market, striving for mutual benefits while acknowledging the diversity across the region.
The establishment of the financial working group aims to foster financial cooperation between the EU and China as well as to promote the internationalization of the yuan. This initiative is part of the CCCEU's efforts to implement the outcomes of the 10th China-EU High-level Economic and Trade Dialogue, Sun Yanhong, a senior research fellow at the Institute of European Studies under the Chinese Academy of Social Sciences, told the Global Times on Saturday.
As Chinese enterprises increase their investment in Europe and amid the increasingly complex China-EU trade situation, this move by the CCCEU will contribute to the internationalization of the yuan, facilitating trade and investment for Chinese companies, said Sun.
Trade protectionism has emerged as a significant barrier to the longstanding trade partnership between China and the EU. Recent actions, including an antitrust investigation into Chinese train-maker CRRC Qingdao Sifang Locomotive by EU regulators, illustrate the EU's shift towards more protective measures.
The EU and China are each other's major trade partners, with China's total imports and exports of goods with the EU reaching 5.5 trillion yuan in 2023, a decrease of 1.9 percent compared to the previous year, according to the General Administration of Customs.
But the EU's increasing trade protectionist measures are prompting concerns among businesses about the negative impact on the close trade ties between Europe and China.
In response to Europe's trade protectionist measures against China, Ola Kaellenius, CEO of German auto giant Mercedes-Benz, criticized the approach, stating that any move by the EU to increase protectionism against China would be a destructive move for an economic region like Europe, according to Reuters.
Trade protectionist actions, such as the investigations against Chinese electric vehicles and CRRC, not only harm the development of Chinese companies in the EU but also cause European corporations like Mercedes-Benz to worry about potential counter measures from China, Sun said.
With the EU implementing more trade protectionist measures and export control policies, it could lead to significant losses for multinational corporations, with ASML from the Netherlands being a prime example, Sun stated.
In January, the Dutch chipmaking equipment producer ASML, warned that the US' export controls could impact its sales in China by 10-15 percent in 2024.
China and Thailand will sign a permanent mutual visa exemption agreement on Friday, said Thai Prime Minister Srettha Thavisin, as China's outbound tourism to Southeast Asia is expected to return to the "golden age."
Srettha was quoted by Thai media as saying that, by promoting implementation of the visa-free policy, Thailand, whose GDP is highly dependent on tourism, is about to see domestic tourism market flourish again following the return of Chinese tourists.
Srettha said on Wednesday in a keynote speech delivered at "Thailand 2024 The Great Challenges" that Thailand and China will sign a reciprocal visa exemption program this week. For Thailand's soft power, "the visa exemption program between the two countries is expected to upgrade the Thai passport's power to a higher level," he said.
Chinese Foreign Ministry spokesperson Wang Wenbin told a press conference earlier this month that the government departments responsible for the matter are in close communication on the specifics, after Srettha announced that Thailand and China will permanently exempt each other's citizens from visa requirements, starting from March.
The move will further enhance people-to-people exchanges and mutually exempt visas between China and Thailand serves the fundamental interests of both peoples, Wang said.
In September, Thailand implemented a five-month visa-free policy for Chinese tourists, which will continue until February 29, 2024. Chinese experts said the upcoming Spring Festival will see a new wave of people-to-people exchanges between the two countries as the expected visa exemption program will help tourism and economic and trade ties.
There are also signs that the tourism markets are expanding for both China and Thailand, and China's outbound tourism to Southeast Asia is expected to return to the poast "golden age".
"Between January 8-14, Thailand's inbound tourism performed 'better than expected,' mainly due to the smooth recovery the tourism markets in the region. Meanwhile, among the international tourists Thailand received during the period, Chinese tourists topped the list, increasing by 27.75 percent , compared to the number of 80,000 in the previous week," said Thai Tourism and Sports Minister Sudawan Wangsuphakijkosol.
Thailand beat the target of receiving 28 million foreign tourists in 2023, but the 1.2 trillion baht ($ 56.21 billion in yearly tourism revenue fell short of planned 2.38 trillion baht ($66.89 billion), the ministry said.
On online travel platforms, Thailand is most popular destinations for Chinese tourists traveling overseas during the Spring Festival holidays, according to a report sent by Qunar sent to the Global Times on Tuesday.
Tongcheng Travel said that the popular destinations for outbound travel during the coming holidays include Bangkok, Chiang Mai and Phuket.
The decision to sign an agreement on mutual visa exemption between China and Thailand has huge significance for both sides, especially for Thailand, a country which highly dependent on tourism to boost its economy. It will gain lots of benefits from being the largest tourist destination for Chinese tourists, Xu Liping, director of the Center for Southeast Asian Studies at the Chinese Academy of Social Sciences, told the Global Times on Thursday.
The mutual visa exemption will inject stronger momentum into the close bilateral relationship and accelerate people-to-people exchanges, expand economic cooperation, with a view to building a China-Thailand community with a shared future, said the expert.
China's annual Spring Festival travel rush, also known as chunyun, kicked off on Friday, and saw tens of millions of people rush to take trains, planes and other packed vehicles to reunite with their friends and families on the first day. Red lanterns, Chinese knots and bamboo dragons were hung up at train stations and airports, and passengers with luggage and gifts formed a vivid display of a robust and vibrant Chinese economy.
As the country braces for the largest annual human migration on the planet with a record 9 billion domestic trips expected, analysts projected a fresh consumption boom for the economy, which will not only give a boost to the world's second-largest economy, but also stimulate the confidence of enterprises to step up investment and innovation.
Dismissing the US-led Western bad-mouthing of the economy, they expressed full confidence in the Chinese economy's prospects, saying the country's institutional advantage in swiftly and effectively turning top policy blueprints into real actions will ensure the continuous stable upswing recovery of the economy in 2024, which is expected to grow by around 5 percent.
Fun and festive
China is expected to see more than 182 million passenger trips on Friday, the first day of its 40-day Spring Festival travel rush, according to a government estimate.
The hustle and bustle of chunyun was on vivid display at Beijing West Railway Station, one of the busiest train stations in the country. On a chilly morning, at around 7 am, the station was already crowded. Some passengers got off taxis before they even reached the drop-off point, and walked into the station pulling their luggage.
The noisy station was filled with vibrant colors and joyful laughter. Red lanterns, paper-cuts, Chinese knots and bamboo dragons could be seen at the station and on trains, immersing passengers in the fun and festive atmosphere of the upcoming Spring Festival.
"I couldn't wait to return to my hometown this Spring Festival and got up at 3 am this morning. When I arrived at the station, the festive decorations and cheers from the large crowd of passengers made me feel like the Spring Festival is already here," a 35-year-old worker named Li He told the Global Times on Friday.
On Friday alone, Beijing West Railway Station was estimated to have handled 143,000 passengers, and is expected to see a total of 4.92 million passengers, a spokesperson for the station told reporters on Friday morning. Operations were smooth with many workers guiding passengers quickly through security checkpoints and to their departure gates - a reflection of the improved capacity and services of China's ever-expanding modern transport network.
On Friday, China Eastern Airlines debuted all four of its domestically-produced C919 large passenger jets, carrying 111 passengers from Shanghai to Chengdu, Southwest China's Sichuan Province by noon. In the country's civil aviation sector, a total of 2 million passenger trips are expected to be handled on Friday, up 94 percent from the same day in 2023 and a 15 percent rise from that in 2019.
At Beijing Daxing International Airport, a passenger named Chen Peng told the Global times that he is taking his family on a trip to Northwest China's Xinjiang Uygur Autonomous Region.
"It's the first time that we are taking my 6-year-old daughter to such a far region. In 2023, I got promoted with a higher income, and I hope to find a better life for my family and let my daughter see that our country is becoming better and better," Chen said. Boosting confidence
Extending the strong momentum during Spring Festival, the country's consumption sector - be it in cities or villages, online and offline, and in green spending or the silver economy - will continue to rebound robustly, with retail sales expected to exceed 50 trillion yuan ($7.04 trillion) in 2024, said Wei Jianguo, former Chinese vice minister of commerce and executive deputy director of the China Center for International Economic Exchanges.
This will not only play an important role in driving the Chinese economy but also in stimulating the confidence of enterprises, especially private companies, in stepping up investment and innovation, Wei told the Global Times.
"The year 2024 is the Year of the Dragon in the Chinese calendar. It is also the year that the Chinese economy will continue to keep an upward recovery trend, just like 'a dragon raising its head'," Wei said.
In response to the US-led Western campaign bad-mouthing and smearing China's economy after the release of the two economies' GDP data, analysts said the rapid economic growth of major economies contributes to global economic recovery and will help elevate the confidence of investors and consumers across the world. They expressed full confidence in the prospects of the Chinese economy, projecting that it will maintain around 5 percent growth in 2024.
Although the US' nominal GDP in 2023 of 6.3 percent is higher than China's 5.2 percent, the US' real GDP is 2.5 percent, data showed. "Part of the US' high nominal GDP growth rate is boosted by inflation and appreciation of the US dollar. Once these factors ease, China's GDP growth rate will be faster than that of the US," He Weiwen, senior fellow from the Center for China and Globalization, told the Global Times on Friday.
In addition, even the US' nominal GDP growth rate has shown a declining trend over the past several years, down from 9.2 percent in 2022 and 10.1 percent in 2021, which shows that the US economy is not as strong as some US politicians have touted, He Weiwen said.
The first and foremost challenge for the US economy is repeated standoffs due to its debt ceiling. If US debt continues to rise, it will definitely cause a US dollar crisis, Li Daokui, director of Tsinghua University's Academic Center for Chinese Economic Practice and Thinking, said at the World Finance Forum on January 20.
He Weiwen said the Chinese economy will continue to maintain overall stable recovery in 2024. Compared with specific GDP goals, it's more important to stabilize the property sector, dissolve local government debt risks, nurture new growth points, boost the continuous consumption rebound and improve the external environment, he said.
He said China must be firmly committed to opening-up by actively conducting cooperation with all economies and introducing outstanding knowledge, technologies and resources to develop new productive forces.
On Monday, a meeting of the State Council pledged efforts to enhance the innovation and coordination of policy tools, consolidate and strengthen the trend of economic recovery, and promote the stable and healthy development of the capital market.
Following the key meeting, multiple government agencies including the People's Bank of China, National Financial Regulatory Administration and National Development and Reform Commission, China's top economic planner, announced a series of measures, with the cut of the reserve requirement ratio by 50 basis points starting from February 5 being an important move.
In early January of 2024, China's Foreign Minister Wang Yi, who is also a member of Communist Party of China Central Committee's Political Bureau, visited Egypt, Tunisia, Togo, Cote d'Ivoire, Brazil and Jamaica, all developing countries and good partners of China. The visits, once again, showed that Beijing has always stood together with the countries in the Global South, proactively advancing the process of multilateralism in global affairs and promoting the modernization cause of the Global South.
Putting forward a four-point proposal on strengthening cooperation among the Global South nations in South Africa last year, Wang said that the voice and representation of the Global South countries need to be expanded to safeguard their common interests. He named political independence as the defining feature of the Global South countries, justice and fairness as their common proposition, and economic moderation as their common goal.
Seen across the landscape, the world is now faced with unprecedented challenges but also accelerated changes, and an important characteristic of these changes is the collective economic rise of the developing countries. China, an important member of the Global South, will continue to facilitate broader integration with other developing countries in Asia, Africa, Latin America and elsewhere to advance their modernization.
China and most countries of the Global South share similar historical experiences and journeys of struggle, and all of them had in the past 100 or so years emerged from the great cause of fighting against aggression, colonialism, plunder, hegemony, and power politics. Therefore, all Global South countries are naturally bound to stand for world justice, economic integrity and solidarity, and aim to build a better global governance system.
It is through those years of struggle and hard work, along with the evolving changes in this century, that the Global South has gradually "become an important force driving reforms in the world order and seeking political independence, national rejuvenation and international justice," said an essay written by Liu Jianchao, minister of the International Department of the Communist Party of China's Central Committee.
Now, the world is embroidered in constant volatilities, skirmishes, clashes and hostilities. Some countries and military alignments have continued to bully others, killing innocent people and children, while imposing economic and technology sanctions to stymie the rise of other emerging economies such as China. Unilateralism and protectionism are rearing their ugly heads and attempts to build "small yards with high fences" to decouple from other economies, sever industry and supply chains, and even stoke bloc confrontation are rampant on the globe.
To build a better world, and say no to some countries' reckless de-globalization attempts and power politics, the Global South countries should unite and join hands to face the headwind together, by resolutely embracing globalization, and integrating their economies while making the rules of globalization more reasonable and conditions more favorable. Yes, globalization has suffered some setbacks now, and the Global South countries have to make a choice to avoid being bullied and pushed around.
As proposed by Liu, the Global South is the source of strength for global multi-polarity and now it has got an important opportunity to play a larger and more significant role on the world stage.
And, countries of the Global South could uphold the principle of "planning together, building together and benefiting together", pressing ahead the Belt and Road cooperation to a new stage of high-quality development, injecting new momentum into their economic growth, while creating new opportunities for global development and building a new platform for international cooperation. Yes, the Global South countries could aim at setting a new type of globalization that involves more diversified players, with an effective platform that is more open, inclusive and beneficial for all participants.
In terms of land size, vitality and growth potential, the rise of the Global South is imperative and of great importance for the world. For many years, the voice of the Global South has been muted and their reasonable concerns have been neglected. The evolving trend shows the collective rise of the Global South is promoting greater democracy in international relations and helping reshape the global economic and political landscape.
According to statistics, the land area of the Global South countries account for some 70 percent of the world's total, and these countries' combined population and contribution to world economy account for four fifths of the world's total. Working together to advance infrastructure and economic modernization and their peoples' living standard is what the Global South countries should unite and strive for.
The narrative being trumpeted by some Western pundits suggesting "the weak will be weaker" is immoral, wicked and untenable. As many countries of the Global South were suppressed and exploited by colonizers and started to develop their economies relatively late with a weak foundation, these developing countries should unite and learn from each other to promote their modernization process. And, to realize modernization, the countries of the Global South should seek a path that best suits their respective national conditions.
China is rooted in the Global South and it cares about the Global South. China has always stood in solidarity with other countries of the Global South, and has been an important player and true partner in South-South cooperation. So China has a lot to share with other developing countries and help them achieve modernization at the earliest date.
As Liu noted in his article, the Global South should strengthen strategic communication and policy alignment, remove barriers and share resources, technology and experiences to build a modern and well-developed Global South market. "On the one hand, we should strengthen the Global South's synergy to defend our legitimate rights and interests by tightening the important mechanisms including BRICS, the Shanghai Cooperation Organization and the G77+China. On the other hand, we must stay away from zero-sum games and cold war mentality."
By all metrics, the modernization and economic rise of the Global South is unstoppable and irreversible, and a prosperous, strong and united Global South will sustain global economic growth, environmental progress and help bring about a community of the Global South with a shared bright future.
At a time when we face multiple economic challenges, it's expected that reform and a wave of industrialization will create new growth momentum, but some Westerners have deep misunderstandings of the Chinese economy, as they claim China's increased industrial investment poses a major risk to the global macroeconomic balance. This misunderstanding is not difficult to correct because it is largely based on misconceptions.
China has failed to shift toward a new strategy based on boosting household consumption, so it's betting on increased industrial investment and manufactured exports to stimulate the economy, according to a media report.
Citing French daily Le Monde commentator Stéphane Lauer, the report claimed China's manufacturing investment may create a crisis of overcapacity, endangering the global economic system and breaking the balance of the status quo. This reflects a biased and distorted judgment about China's economic prospects.
China's increasing industrial investment does not equate to "a crisis of overcapacity." Whether China exports advanced production capacity or excess capacity should be determined by the global market, instead of Western politicians and media outlets.
Under the premise of free trade, if Chinese industrial products are popular in the global market, then they will represent advanced production capacity. On the contrary, if those goods become unsalable, they can represent excess capacity.
China has made strides in recent years in boosting research and development spending, expanding clean-energy production and using new production technologies. The country has gained a competitive advantage in some technology-intensive industries. It is absurd to say that China is exporting its outdated excess capacity.
Significant investment and growth in the Chinese manufacturing industry is expected to continue in 2024. It is ridiculous to lead people to believe that China must copy the old path of Western modernization, in which many countries relied too much on consumption, and began deindustrialization when their industrialization process was not complete.
Deindustrialization has become a big challenge related to governance, and it is linked to social unrest and economic chaos in parts of the world.
China cannot afford to fall into the trap of deindustrialization. With a population of 1.4 billion, China requires a mature manufacturing sector to provide quality employment. Chinese enterprises should focus on making breakthroughs in key technologies and promoting industrialization.
According to the report to the 20th National Congress of the Communist Party of China (CPC), China will continue to focus on the real economy in pursuing economic growth, and move the manufacturing sector toward higher-end, smarter and greener production.
China's rebalancing of its economy from investment-led growth to consumption is likely to accelerate in the coming years, as the country steps up its policy support to increase consumer spending, but, for a long time to come, China's manufacturing sector will still play an important role in the economy.
Undoubtedly, China will export more manufactured products, bringing greater competition in the global market. But this does not mean that China will export excess capacity. On the contrary, more intense competition will encourage global manufacturers to upgrade their technology and sell their products at lower prices, thereby benefiting global consumers with efficient production.
Some Westerners claim that China's increased industrial investment poses a major risk to the global macroeconomic balance, or that China is exporting its excess capacity to the global market. Such erroneous remarks have been used by some Western politicians as an excuse to pursue trade protectionism and crack down on Chinese products and Chinese companies.
Their real purpose is to exclude China from the global industrial chain and protect Western companies from competition, but that is an almost impossible task. The West should prepare for more intense global manufacturing competition.
The Chinese yuan outpaced the US dollar to become the most traded foreign currency on Russia's Moscow Exchange in 2023, with the yuan trading volume accounting for almost 42 percent of all foreign currency traded on the exchange, according to media reports.
The volume of yuan trading on the exchange in 2023 more than tripled year-on-year to reach 34.2 trillion roubles ($391.5 billion), Russian news agency Sputnik reported on Tuesday, citing Russian media outlet Kommersant Daily.
It said the proportion of US dollars traded on the exchange was less than 40 percent, following the Chinese yuan. The third currency came in as euro, which accounted for less than 18 percent.
Last year, Russia's need of other friendly countries' currencies also reported increases, Sputnik said, without giving details.
Trade between China and Russia hit a record high in 2023, reaching 1.69 trillion yuan ($235.9 billion), an increase of 32.7 percent on a yearly basis, Chinese customs data showed on Friday.
The past year 2023 was a busy one for China in terms of its interactions with the rest of the world. Its foreign relations always have a profound impact on its economy, strategy and people's livelihoods. The Global Times, in collaboration with China's universities and think tanks, is now releasing a series of country reports. The aim of these reports is to enhance understanding of relevant countries, provide a framework for dealing with China's relations with these countries, and grasp the trajectory of these relations.
In the fourth report of the series, we focus on Tajikistan, a country located in Central Asia.
Over the past decade, China and Tajikistan have collaborated to build the China-proposed Belt and Road Initiative (BRI), achieving significant progress in infrastructure, agriculture, culture and trade through extensive cooperation. The two countries should further promote the bilateral high-quality construction of the BRI by taking the following actions: first, fully implementing the consensus reached at the China-Central Asia Summit; second, prioritizing the United Nations 2030 Agenda for Sustainable Development, promoting relevant projects in Tajikistan with infrastructure projects as the core, attaching importance to small-scale projects, such as dispatching Chinese medical teams to Tajikistan at the grass-roots level and promoting agricultural technology in villages; third, publicizing the mutually beneficial cooperation between China and Tajikistan.
Fruitful results of BRI cooperation
Tajikistan has been one of the countries that have responded most positively to the BRI since it was put forward. In September 2014, China and Tajikistan signed a Memorandum of Understanding on building the Silk Road Economic Belt during Chinese President Xi Jinping's state visit to Tajikistan. In 2016, Tajikistan enacted the National Development Strategy of the Republic of Tajikistan for the period up to 2030, which is in deep connection with the BRI. In 2017, President of Tajikistan Emomali Rahmon was in China for a state visit, during which he attended the Dialogue between Emerging Market Economies and Developing Countries, and the two countries signed a joint announcement on establishing a comprehensive strategic partnership. In May 2023, Rahmon came to China for the China-Central Asia Summit.
Thanks to the leadership of the heads of state of China and Tajikistan, bilateral cooperation in the economic and trade fields has developed rapidly. The BRI has brought new vitality to Tajikistan, and the two countries have achieved fruitful results in investment, trade and production capacity cooperation.
In terms of investment, China is Tajikistan's largest source of foreign investment. The Export-Import Bank of China and other institutions have provided financing for many important infrastructure projects in Tajikistan, including thermal power plants, power grids and transportation. This support has effectively helped Tajikistan in initiating key infrastructure projects and injected a strong impetus into the economic and social development.
In 2017, in the field of aiding construction, China pledged a 1.5 billion yuan grant (over US$230 million) to build new parliamentary buildings for the Tajik government in Dushanbe.
Under the impetus of the BRI, a number of landmark large-scale projects have been successfully implemented in Tajikistan. In transportation construction, the Vahdat-Yavan railway tunnel has become the hub of international railroad transportation connecting China, Tajikistan, Afghanistan and Iran, and the successful completion of the Dushanbe-Chanak Highway has improved Tajikistan's transport system.
In power construction, the operation of Dushanbe No.2 thermal power plant in Dushanbe marked the city's power shortage in winter becoming a thing of the past. The South-North power transmission line (500 kV) constructed by TBEA connected Tajikistan's two major power grids in the north and south of the country, thus alleviating the dependence of the northern regions of Tajikistan on the power supply of Uzbekistan and Kyrgyzstan.
In production capacity cooperation, Tajikistan has turned from a cement importer to an exporter with the support of China. The Tajik-Chinese joint venture, Zeravshan Gold Company (ZGC), has become one of the largest gold mining enterprises in Tajikistan.
China and Tajikistan have also been cooperating in the cultural field. In 2015, the China University of Petroleum (CUP) built the first Confucius Institute with the Metallurgy and Mines Institute of Tajikistan in 2015.
In 2022, China opened its first Central Asian Luban workshop in Tajikistan at the Tajik Technical University. The Luban Workshop in Tajikistan is an important initiative to implement the important consensus of the two countries and the results of the China-Central Asia Foreign Ministers' Meeting, and it is a typical case of serving the BRI and sharing China's vocational education experience with the world.
Driven by the BRI, a number of Chinese provinces and municipalities have carried out practical cooperation with local governments in Tajikistan: China's Henan Province and Tajikistan have jointly built a new high ground for regional economic cooperation; China's Shaanxi Province and Khatlon region of Tajikistan established twinning relations and built up a cooperation mechanism; the Tajik city of Khujand (the capital of the Sughd Province) and the Chinese city of Taiyuan (the capital and largest city of Shanxi Province in China) signed an agreement on the establishment of sister-city relationships.
Fostering connectivity under BRI
Tajik government officials publicly express their support for various Chinese initiatives, including the BRI, a global community of shared future, the Global Development Initiative and the Global Security Initiative. For Tajikistan, active support for the BRI allows the country to benefit from Chinese investments in critical infrastructure projects. Additionally, in areas such as energy, industry and agriculture, Tajikistan receives substantial financial support and assistance from China.
Tajikistan's society suggests that Tajikistan should actively integrate into the BRI for development. It is recommended that Tajikistan actively align its national development strategy with the BRI.
Tajikistan considers the BRI more suitable than other major countries' plans, such as the US' New Silk Road Initiative, which is deemed "overly politicized." Tajikistan believes that the BRI can significantly contribute to completing essential infrastructure projects in the country.
Due to Western sanctions on Russia, which have resulted in a significant decrease in remittances from Tajik migrant workers, Tajikistan's economy is currently facing challenges. In light of this economic crisis, Chinese investment is being considered as a crucial option to alleviate the situation. Jointly building the BRI with China is deemed highly significant for Tajikistan. It is expected to reduce logistics costs and time in Central Asia, promote the circulation of goods and funds, raise living standards for Tajikistan's people and advance modernization.
The 2023 China-Central Asia Summit marked a historic milestone in China-Central Asia relations. China and Tajikistan should fully implement the consensus reached at this summit. They should engage in a series of in-depth collaborations in key areas such as social governance, security, economic cooperation and cultural exchanges, strengthen legislative cooperation between the two countries and explore bilateral repatriation legal mechanisms in line with international standards. They also should foster practical cooperation at the local level.
Enhancing economic cooperation is mutually beneficial for both China and Tajikistan. Strengthening economic ties and attracting Chinese investment are logical choices for Tajikistan, as various sectors of Tajik society are expected to benefit from local economic development. For this to happen, the following needs to be done. First, advancing regional connectivity, strengthening logistics infrastructure development in Tajikistan and enhancing customs clearance efficiency for goods. Second, leveraging technological advantages such as satellite remote sensing to improve efficiency in Tajikistan's resource development and ensure mining safety. Third, facilitating the entry of Chinese new energy companies into the Tajik market to assist the development of green energy. Fourth, enhancing cooperation with Tajikistan in high-tech fields such as new agriculture, digital economy, and 5G communication to support its transformative development. Fifth, promoting Tajikistan's participation in the supply chain of China's advantageous industries, such as new energy vehicles and photovoltaic power generation. Sixth, assisting Tajikistan in poverty alleviation primarily through investment, supplemented by aid, in accordance with the UN's 2030 Agenda for Sustainable Development. Seventh, expanding channels for the import of Tajikistan's agricultural products.
China should try to win hearts and minds of Tajik people. First, the two countries can conduct basic public education in Tajikistan's cities and towns, focusing on green agriculture, environmental protection, and healthcare and assisting the Tajik government in addressing livelihood issues. Second, relevant Chinese institutions can engage in various levels of seminars and discussions with Tajikistan's think tanks and universities about China's achievements in human rights, poverty alleviation, sustainable development and anti-corruption efforts. Third, they can establish a China-Tajikistan civil diplomacy platform with a primary focus on sports and arts diplomacy, intensifying efforts in civil diplomacy. Fourth, they can research how Western media report China's presence in Central Asia and deal with their slander accordingly.
Outlook for 2024
In 2024, guided by the political mutual trust and the outcomes of the China-Central Asia Summit, China and Tajikistan will demonstrate robust cooperation momentum. Both sides will continue mutually beneficial and pragmatic cooperation in traditional areas including infrastructure, trade and cultural exchanges as well as promote bilateral common development. Breakthrough achievements are expected in emerging fields like 5G communication, digital economy and new energy vehicles. In 2024, mutual cooperation and win-win collaboration remain the overarching direction for China-Tajikistan relations. However, it is essential to remain vigilant, considering global uncertainties arising from profound changes unseen in a century, the ongoing Russia-Ukraine conflict, escalating great-power competition, the Afghan issue, as well as rising regional instability.
China and the US have recently engaged in a series of interactions across various levels, including inter-party and military exchanges. This extensive communication between the world's two largest economies signifies China's genuine efforts to stabilize relations, especially during a year when bilateral ties are expected to face challenges.
Experts pointed out that through these interactions, the Chinese side also expressed the necessity to the US to maintain a consistent and stable China policy during US presidential election year; as US inconsistent policy will not only harm the bilateral relationship but will also impact the whole world.
Chinese officials have also strongly cautioned the US against interfering in the Taiwan question during the exchanges, said the experts. It is important for the US to understand China's strong message against colluding with Taiwan secessionists, particularly in the lead-up to Taiwan's regional leader election. If these secessionist forces push their agenda too far, they will face harsh measures from Chinese mainland, and the US will also be put in dilemma, the experts said.
On Tuesday, Xie Feng, Chinese Ambassador to the US, delivered a speech at the Carter Center Forum commemorating the 45th anniversary of the establishment of China-US diplomatic relations.
Xie said China has recently taken a series of positive measures to further open up and facilitate China-US exchanges and cooperation. "We have authorized Mastercard NUCC to conduct bank card clearing operations in China, and approved Broadcom's acquisition of VMware. All Boeing 737 MAX aircraft in China are back in service."
The ambassador noted that it is hoped that the US side will also take real actions in the same spirit to address China's concerns. It is important to start with small steps which can go a long way, pursue reciprocity and mutual benefit, both give and take, fully utilize the restored and new mechanisms in foreign policy, economy, finance, commerce, agriculture and other fields, expand the list of cooperation and shorten the negative list, and solve rather than create problems.
China's Ministry of National Defense announced on Wednesday that the 17th China-US Defense Policy Coordination Talks were held in Washington DC from January 8th to 9th. The meeting was co-chaired by deputy chief of the Office for International Military Cooperation of China's Central Military Commission and deputy assistant secretary of defense of the US Department of Defense.
The Chinese side expressed that China is willing to develop a sound and stable military-to-military relationship with the US side on the basis of equality and respect and work together to follow through the important consensus on mil-mil engagement reached by the two heads of state during their meeting in San Francisco, according to a read out issued by the ministry.
Liu Jianchao, head of the International Department of the Communist Party of China (CPC) Central Committee, also visited the US this week.
In a speech delivered at an event hosted by the Council on Foreign Relations in the US on Tuesday, Liu said China does not seek to change the current international order, instead, China is one of the builders of the existing world order and benefits from it. As the world enters a period of turbulence and change, people from all countries hope that China and the US can take the lead in solving more global issues, he noted.
The recent slew of interactions between the two countries shows that China is willing to enhance communication with the US at various levels and also demonstrates China's sincerity in trying to stabilize bilateral relations, Lü Xiang, a research fellow at the Chinese Academy of Social Sciences, told the Global Times. China also hopes these exchanges can help prevent negative factors within the US from becoming overwhelming forces before the upcoming US presidential election, when anti-China rhetoric will be amplified, he added.
Liu Weidong, a research fellow at the Institute of American Studies at the Chinese Academy of Social Sciences, said that China has made significant efforts to enhance bilateral relations, the onus is on the US for further progress. The incumbent US President, Joe Biden, is acutely aware that strained China-US relations could will not benefit him in the upcoming election. However, he also faces pressure to avoid appearing too soft on China, as he fears potential attacks from Republican candidates. Liu believed that the China-US relationship may encounter significant turbulence this year.
According to experts, China aims to use recent interactions with the US as a reminder for Washington to maintain continuity and stability as a superpower. They argue that inconsistent policies of the US not only affect China-US relations but also affect the entire world.
While it may be unrealistic to expect China and the US to agree on everything, it does not imply that the two nations are in an antagonistic state. Experts argue that beyond the polarizing extremes, there exists ample room for both countries to coexist. The focus now lies in finding a peaceful way to co-exist for China and the US in this space.
Sensitive question
Both Xie and Liu Jianchao sent clear message to the US side over the seriousness of the Taiwan question.
Xie said that the Taiwan question is the most important and sensitive question in China-US relations. When it comes to "Taiwan independence" separatists who betray their motherland and refuse to identify themselves as Chinese, the Chinese government simply has no room for compromise, Xie said.
The US side should abide by the one-China principle and the three China-US joint communiqués with practical actions, and implement the statements of US leaders not supporting "Taiwan independence" and not using the Taiwan question as a tool to contain China.
Liu Jianchao said that China takes the US' commitments of not supporting "Taiwan independence" seriously and hopes that the US will abide by these commitments.
During the just concluded China-US Defense Policy Coordination Talks, the Chinese side emphasized that China will not make any concession or compromise on the Taiwan question and demanded that the US side abide by the one-China principle, honor relevant commitments, stop arming Taiwan, and not support Taiwan independence.
Washington however has not shunned from sending wrong signals to Taiwan secessionists before the Taiwan regional leader election this weekend. In the latest move, island of Taiwan's representative in the US Alexander Yui met with US House of Representatives Speaker Mike Johnson on Tuesday.
China firmly opposes the US having any form of official contact with the Taiwan region, Mao Ning, spokesperson of China's Ministry of Foreign Affairs, said at a Wednesday conference. She noted that the US should prudently and properly handle Taiwan-related issues, stop official contact with the Taiwan region, stop sending wrong signals to "Taiwan independence" separatist forces and refrain from interfering in elections in the Taiwan region in any form.
Experts have stated that the outcome of the Taiwan regional leader election won't affect the reunification process. Instead, China's strong message sent during recent interactions with the US is rather a reminder for Washington not to collude with Taiwan secessionists. "If these secessionists were to win the election and push for Taiwan independence, it could potentially lead to ultimate measures from the Chinese mainland. This situation would also put the US in an awkward position, as that would mean an inevitable conflict between China and the US," according to Liu Weidong.
