When US cannot compete economically, it moves to military confrontation

Editor's Note:

With NATO's continuous expansion, it is evolving from a regional security alliance into a global organization. The alliance, which celebrated its 75th anniversary with a summit in Washington recently, has played a major role in exacerbating the Russia-Ukraine crisis. As the crisis has been in its third year, how to see the trajectory of the conflict? How likely is the possibility of a nuclear war in today's world? Global Times (GT) reporter Ma Ruiqian recently interviewed Scott Ritter (Ritter), a former US Marine Corps intelligence officer, over these pressing issues. 

GT: How do you see the trajectory of the Russia-Ukraine conflict this year? How much more support can the West provide to Ukraine?

Ritter: This is a very difficult war. It's a war that didn't need to be fought and shouldn't have been fought. Russia did not want to invade Ukraine. It's the last thing Russia wanted to do, but they were compelled to take this action because of the irresponsible behavior of the US and NATO, and the European Union. Russia's initial plan was based on putting pressure on Ukraine to accept a rapid peace settlement, but that peace was rejected by the West. 

Russia today is better prepared to not only continue this war but is also positioned to win this war more than Ukraine or NATO. Can this be turned around? Unlikely. The amount of investment that would have to be made into Ukraine exceeds the capabilities of NATO and the US. The reinvigoration of military industry is beyond the capacity of Europe at this point in time because of the economic consequences of this conflict and the sanction of Russia, and now that has backfired for Europe and the US.

So far, Russia has prevailed militarily. Now we come to the political endgame. This is where China has to pay attention, too, because how this war ends will likewise impact the West's posture toward Taiwan region. Ukraine is a tool. Taiwan is also a tool of the West. If this tool emerges still usable, still viable, that's a defeat for Russia. Then the West will say we can use Taiwan region as a tool against China. China is participating in discussions about peace, but the peace between Russia and Ukraine, in large part, will determine the future potential for conflict between China and the US over Taiwan region. How this war ends in Ukraine is very important for dictating the future of war or peace in the Pacific.

GT: NATO is reportedly in talks to deploy more nuclear weapons. How likely is the possibility of a nuclear war in today's world?

Ritter: We are closer to nuclear war today than we have been at any time. The US is not an honest partner. The US continues to view nuclear weapons as an expression of American supremacy, believing that we must be the supreme nuclear power. China has, historically speaking, had a very pragmatic and responsible approach to nuclear weapons. China has never used the nuclear bomb, but it has developed nuclear capabilities to provide a deterrent against the American nuclear system. However, the US has positioned itself to have the potential for a preemptive attack that could neutralize China's nuclear deterrent. This takes us away from deterrence theory and into war-fighting theory. This is a very dangerous place to be. When you look at the irresponsible expression of American nuclear policy, which now extends to NATO, it talks about putting a certain number of nuclear weapons on operational standby so they can be used quickly. When we talk about fighting a war with the assumption that nuclear weapons are going to be used, it means that if there is a war, there's a high probability nuclear weapons will become part of it. And that is a disaster for humanity. 

If I'm a Chinese diplomat, and perhaps the diplomat shares my opinion about the danger we face, what can be done? How do we begin to approach a nation that is very aggressive and incapable of negotiating in good faith? The US has to change. We have to change our approach to nuclear weapons and how we deal with the world. But we're an empire in decline. When an empire is in decline, it tends to fall back on its strongest position. Right now, the US is very strong in nuclear weapons, so we're falling back on the nuclear shield, which makes everything going forward even more dangerous. If the nuclear option becomes our only option, there is a real potential for nuclear war.

GT: Ahead of the NATO summit, China hosted the Conference Marking the 70th Anniversary of the Five Principles of Peaceful Coexistence. The Shanghai Cooperation Organization (SCO) summit, which China is a major participant, was held in Kazakhstan. How do you compare China's and the US' contributions and concepts regarding world peace?

Ritter: When you compare the Chinese approach with the NATO approach, you see that China is doing a very good job, behaving very responsibly, and looking for alternatives to conflict. Why is the SCO succeeding? Why do so many people want to join BRICS? Because these are viable alternatives for the rest of the world. China is a very responsible global leader, sitting down with the world and trying to articulate a common position on the peaceful resolution of global problems. China wants good relations with the West.

NATO, on the other hand, only talks about war and confrontation. NATO is a tool of the US. And the US is seeking to use NATO to bolster its weakened position in the Pacific and to get NATO expanded into the Pacific. This is one of the things that was discussed at the NATO summit.

Also, it's the US that is being irresponsible in terms of responding to China's activities in the South China Sea. It's the US that is building military alliances to contain China militarily. China is economically defeating the US that the Chinese model of global development is more efficient than its American counterpart. Since we can't compete with China economically, we seek to move to where we feel we have the advantage, which is military confrontation. 

GT: From the Ukraine crisis to the Gaza crisis, how have the so-called universal values of the West been influenced?

Ritter: I think Gaza is exposing the ugliness of the US. The tragedy is that the US has lost all credibility when it comes to the very things that should define us, the universal human values. When you take a look at Gaza, it's such a contradiction of what we claim to stand for and what we do. It's so gross that it allows people to legitimately say that the US is a fraud. When that is exposed as a lie, our existence becomes meaningless. This would be a dark thing for the US and for the world. I'm afraid that Gaza is showing that the US dream of human rights and liberty is a fantasy and that the US has stopped working to make it a reality.

GT: Julian Assange gained "freedom" after pleading guilty last month. Reflecting on your experience of having your passport confiscated by the US State Department on your way to Russia, what are your thoughts on the so-called human rights and freedom in the US?

Ritter: It's a dark day for the US, when you find out that there is no free speech, that there is no freedom of association, that it's all a lie — that the government controls you instead of you controlling the government. Julian Assange was arrested for exercising free speech as part of a free press. He committed no crime. In doing so, the US sent the signal to every American: if you challenge us, we will break you, we will arrest you, we will destroy you. They've sent that message to me many times, and they tried to send it again by taking my passport. But I'm going to get my passport back, and I will continue to travel. I will continue to speak to defend the free speech, free press and freedom of association in the US.

China able to achieve 2024 GDP growth target of around 5% as 3rd plenum injects new growth momentum: expert

There is full confidence that China will be able to achieve its full-year GDP growth target of around 5 percent in 2024, as the resolution on further deepening reform comprehensively to advance Chinese modernization adopted at the just concluded third plenary session of the 20th Communist Party of China Central Committee has injected fresh growth momentum to the economy, an expert said on Thursday.

China's economic growth rate is expected to reach around 5 percent in the second half of the year, and as a result, the economy is expected to achieve its pre-set annual target. This year, China's contribution to the world economy may still remain at a high level, casting itself as a key driver of the global economic recovery, Li Xuesong, director of the Chinese Academy of Social Sciences' Institute of Quantitative and Technological Economics, told the Global Times.

From now to 2035, the foundation supporting the high-quality development of China's economy remains solid, Li said at a seminar held in Beijing on Thursday, noting that China's economy is expected to maintain a significant growth potential over the period.

"The new technological revolution offers strategic opportunities for high-quality development. A robust industrial foundation provides continuous momentum. A vast market generates demand traction and the comprehensive guarantee of production factors offers solid support," he said.

Debunking some Western media outlets' smearing of China's economic prospects citing so-called disappearance of the demographic dividend, Li said the country's advantages in the quality and quantity of the labor force persist.

The working-age population remains sizable, contributing talent and labor to economic growth. In addition, continued improvements in the health and education level of labor force facilitate the rapid accumulation of demographic quality dividends. Third, new urbanization drives ongoing improvements in the distribution of labor in various regions, offering substantial potential for enhancing the efficiency of labor resource allocation, he said.

After China reported a steady 5 percent GDP growth for the first half of 2024, multiple international organizations and banks have maintained their forecast of 5 percent GDP growth for China this year, thanks to remarkable performances in areas such as exports, even as many major economies and the global economy as a whole face serious downward pressure.

Looking ahead, Li said China should foster the high-quality development by seeking major upgrades in three aspects. "We should leverage the advantages of the hyperscale market to drive demand expansion, enhance quality, and facilitate structural upgrading. In addition, we should accelerate the iterative process of supply and promote structural upgrading, while driving sustained efficiency enhancement and structural advancement," he said.

He called for efforts to boost the synergistic growth of traditional and emerging industries, and foster the development of new quality productive forces.

Li noted that the Chinese government has accorded paramount importance to the stable and healthy development of the real estate market, with a series of policy adjustments.

In addition to current policies, we can explore the establishment of specialized asset management agencies to take over and restructure certain real estate enterprises in the future, Li said.

China is a key driver of world economic growth. According to the IMF's research, every 1 percentage point increase in China's economic growth will lead to a 0.3 percentage point increase in the growth of other economies. As the world's second-largest economy, China has added important stability to the world economy, Li said.

Key projects update to improve quality of China-Russia trade: expert

Key investment projects are set to improve the quality of China-Russia trade and provide further impetus for bilateral trade to reach $300 billion by 2030, Chinese experts said on Tuesday, as cooperation meetings were held in Russia this week.

Russian and Chinese authorities agreed to update the list of significant projects during a meeting of the Sino-Russian intergovernmental commission on investment cooperation, Russian news agency TASS reported on Tuesday, citing First Deputy Prime Minister of Russia Denis Manturov.

Chinese Vice Premier Ding Xuexiang is in Russia from Sunday to Tuesday, co-chairing the meeting as well as the 21st meeting of the China-Russia Energy Cooperation Committee and attending the sixth China-Russia Energy Business Forum.

"I consider our meeting to be rather timely and fruitful. Reaching agreements on updating the list of significant projects is very important. There are more than 60 initiatives with the total amount of declared investment exceeding $138 billion," Manturov said.

"We also saw trade rise so far this year, and it has the potential to rise to $300 billion by 2030, according to our estimates," Manturov said.

Ding said that the two sides have strengthened the top-level design of investment cooperation, steadily promoted cooperation on key projects, created new highlights in sub-national cooperation, and achieved new positive results, according to the Xinhua News Agency.

The potential of investment cooperation should be tapped, and sub-national cooperation should be better carried out, Ding said, adding that the two sides should strengthen policy support and actively create a favorable investment environment.

Observers said that frequent and continuous high-level official exchanges and intensified cooperation among localities in recent weeks showed that concrete steps were being taken in line with the strategic guidance of the two heads of state. These meetings and exchanges will further boost bilateral trade and economic cooperation, especially investment.

Song Kui, president of the Contemporary China-Russia Regional Economy Research Institute, told the Global Times on Tuesday that trade between China and Russia is in a state of vital transition, as industrial cooperation featuring key projects will vastly improve the quality of bilateral trade and the trade structure.

"This is a major change. Key project cooperation will become a symbol of higher-level bilateral cooperation," Song said.

Bilateral trade grew fast in recent years, hitting a record of $240.11 billion last year, up 26.3 percent year-on-year, customs data showed. However, trade growth slowed in the first half of this year as the US tightened its unilateral sanctions on Russia. In the first six months, bilateral trade reached $116.87 billion, up 1.8 percent year-on-year.

Bilateral cooperation on key projects will greatly enhance the cross-border flow of productive factors, improve the quality of trade toward high-level development and become a new engine to drive trade higher, Song said, noting that more processed Russian goods with higher added value will be traded in addition to the current range of basic resources and materials.

Even as bilateral trade growth was affected by the intensified US financial crackdown during the first half, there's still a good chance of meaningful growth for the full year as more work is being done to improve the financial infrastructure to counter the impact of US sanctions, with possible breakthroughs in the second half, Song noted.

More than 90 percent of mutual payments in bilateral trade are now conducted in national currencies, TASS reported, citing Manturov.

China and Russia are actively advancing bilateral cooperation despite external disruptions, with the two sides zooming in on expanding trade and improving its quality, Zhang Hong, an associate research fellow at the Institute of Russian, Eastern European and Central Asian Studies of the Chinese Academy of Social Sciences, told the Global Times.

China delivers world’s first river-sea LNG bunker and transport vessel

China has delivered the world's first 14,000 cubic meters liquefied natural gas (LNG) bunkering and transport vessel capable of river-sea navigation in Shanghai, breaking international technology barriers with a record of more than 85 percent in the localization rate.

The vessel, Huaihe Nengyuan Qihang, built by Hudong-Zhonghua Shipbuilding (Group) Co, a subsidiary of the China State Shipbuilding Corp, was delivered and named in Shanghai two months ahead of schedule, the company told the Global Times on Sunday.

The completion of the vessel is of great significance for implementing the carbon emissions reduction strategy along the Yangtze River, promoting LNG-powered vessel refueling in the Yangtze River Basin, and opening up inland LNG vessel transport channels, according to the vessel's builder.

The ship is 130 meters long, 23.6 meters wide and has a depth molded level of 15 meters. Its dual-fuel propulsion system allows the vessel to navigate along the Yangtze River as well as in deep-sea areas.

The delivery of the ship reflects the application of several localization technological breakthroughs, especially within the main equipment used in the vessel's cooling system, and other facilities such as LNG compressors and incinerators, dual-fuel power generator sets, the vessel's power distribution system, and electric propulsion systems.

Multiple domestically made components mean the ship has a localization rate of more than 85 percent, making it China's LNG storage and transport equipment with the highest localization rate, according to the company.

Hudong-Zhonghua said that the Yangtze River is China's major east-west waterway, with an annual water transport capacity exceeding 3 billion tons, accounting for more than 60 percent of the country's total inland waterway transportation.

For a long time, the Yangtze River water transport has relied on vessels powered by diesel and heavy oil, leading to increasingly severe environmental pollution issues.

In June 2023, the "Initiative of E-Yangtze River" was jointly released by the Ministry of Transport and 13 provinces and cities, aiming to address the carbon emission issues of the river.

Further easing of entry restriction speeds up nation’s inbound tourism revival

Chinese embassies in 14 Central and Eastern European countries, including Greece, Poland and Hungary, have announced that China will grant five-year multiple-entry visas to citizens of these countries who hold a valid ordinary passport and meet all relevant requirements to visit China for business, tourism or family visits, effective on Wednesday.

These measures are being added to China's ongoing efforts to expand visa-free policies and streamline entry procedures for inbound tourism, aimed at accelerating the country's high-level opening-up to shore up the comprehensive economic revival, analysts said.

Foreign tourists' enthusiasm for visiting China has surged. According to a report sent by Tongcheng Travel to the Global Times, the number of foreign visitors to some domestic tourist cities has increased significantly during the peak summer travel season.

The robust demand has greatly boosted hotel bookings and tourist spending in major cities. In the first half of this year, foreign bookings for various branded hotels on the eLong hotel-booking platform nearly doubled year-on-year. Hotel bookings by foreign guests are expected to continue growing momentum during the summer, according to the report.

China has implemented measures to revive inbound tourism after the COVID-19 pandemic. In June, China's Ministry of Foreign Affairs announced a unilateral 15-day visa-free entry pilot for New Zealand, Australia and Poland, increasing eligible countries for the policy to 15 days since November 2023. Experts note that the further relaxation of entry restrictions will provide a significant boost to both domestic and international tourism markets.

The strength of China's tourism reflects higher household incomes, service innovation and a shift towards visceral and cultural experiences in line with consumer preferences, UBS' Chief Investment Office said recently, highlighting tourism as a key driver of China's consumption upgrade and high-quality development.

A series of inbound facilitation policies have spurred a consumption recovery across China's tourism market, drawing a large influx of foreign visitors recently, Zhang Lingyun, executive editor-in-chief of Tourism Tribune, told Global Times on Wednesday, noting the surge will stimulate domestic consumption.

"Regarding the market structure, international markets beyond neighboring countries are still ripe for development, holding significant potential for further growth in China's inbound tourism," Zhang said, calling industries to evolve their marketing approaches based on the characteristics of customer groups from different countries.

Data from the National Immigration Administration showed that in the first half of the year, foreigners entered China through various ports amounted to 14.635 million in terms of passenger trips, up 152.7 percent year-on-year. Among them, 8.542 million entered visa-free, constituting 52 percent of the total and up 190.1 percent year-on-year.

Chinese airlines are also ramping up international flight capacity in response to high demand. Air China's routes will exceed 90 percent of the 2019 levels this summer, totaling 114 routes across 43 countries and regions worldwide. This includes 32 routes with 53 daily flights between China and Europe, surpassing overall flight operations to 116 percent of the 2019 levels.

China's National Development and Reform Commission and other departments have recently issued measures that called for the continuous optimization of entry and exit policies, the expansion of visa-free transit policies, an increase in the frequency of entry flights, and the introduction of more high-quality inbound tourism products and services to create new consumer options, while cultivating new growth points.

EU resorts to gamesmanship in trade talks with China over EV tariff spat

On June 22, 10 days after the European Commission (EC), the executive branch of the EU, announced provisional duties on Chinese electric vehicles (EVs), Chinese Commerce Minister Wang Wentao held a video call with Valdis Dombrovskis, executive vice president of the EC, during which they agreed to start consultations over the dispute. The very next day, on June 23, China dispatched a working group to Europe for the talks. Since then, multiple rounds of consultations at the technical level have been held via video link.

For those who are concerned about escalating trade tensions between China and the EU, the talks should offer some relief. However, even as expectations are running high for the two sides to focus on the talks to properly resolve the dispute and avert further dangerous escalation, a handful of EU politicians appear to be resorting to gamesmanship, which highlights the EC's lack of sincerity in the talks, undermining the consultation process.

The latest example is, on July 7, EU Ambassador to China Jorge Toledo asserted that the EU had offered to engage in consultations with China "for months," but "it was only nine days ago" that the Chinese side agreed to begin this process. This claim was immediately refuted by the Chinese Ministry of Commerce (MOFCOM), which said the assertion is "seriously inconsistent with the facts." MOFCOM offered a detailed account of China's efforts to seek consultations, including a letter from Wang to Dombrovskis requesting talks, dated as early as October 24, 2023, shortly after the EU formally launched the probe.

Toledo is not alone in the EU's apparent attempt to shift blame after the EC's decision sparked a widespread backlash, including from some leaders of EU member states and EU businesses. On July 4, the EC released a Commission Implementing Regulation for the imposition of the provisional countervailing duties. The document, which is more than 200 pages in length, was clearly aimed at justifying the EU-launched investigation and its subsequent decision, but it failed to conceal the loopholes and flaws in the investigation.

"By making these false allegations, the EU aims to add pressure on China during the consultations to gain more bargaining chips. On the other hand, the EU wants to show a hard-line stance toward China to deflect the bloc's internal conflicts," Jian Junbo, deputy director of the Center for China-Europe Relations at Fudan University's Institute of International Studies, told the Global Times. He noted that faced with strong opposition from within the bloc, the EU wants to shirk its responsibility to China.

Presumption of guilt

Staggeringly, the EC document also largely confirmed a detailed account of the EC's problematic investigation process that the Global Times published on June 21, based on information provided by those with knowledge of events.

For example, the document said that the EC initiated the probe "on its own initiative," claimed that there was "sufficient evidence" from readily available information that Chinese firms benefited from subsidies, and asserted that based on "market information from various independent sources" it determines Chinese EVs "negatively affect" EU industry. Chinese officials and experts have repeatedly said the EC's probe was not launched at the request of EU industry, which is very rare in such probes, and the EC, playing the role of "the judge," already deemed Chinese EV firms "guilty" even before the probe began, meaning the subsequent procedures were only aimed at finding proof to back its presumption of guilt.

This working approach is evident throughout the investigation process, which clearly shows the EC was only interested in piecing together any information that it felt useful to support its predetermined ruling. In responding to criticism about its process, the EC document argued that EC President Ursula von der Leyen's announcement in a speech on September 13, 2023 did not constitute the initiation, and the Chinese side was notified on September 22, 2023. This, too, confirmed the Chinese side's account that the EC's initiation and notification process was extremely problematic, reflecting its lack of sincerity in engaging in pre-initiation consultations.

According to information obtained by the Global Times, the Chinese side was only given one working day to prepare, with the first round of consultations held on October 2, the second day of China's weeklong National Day holidays.

Manufacturing evidence

To back its presumption about Chinese firms benefiting from government subsidies, the EC offered the so-called extensive "evidence" in its 200-page document. However, a closer look at its content reveals how the EC sought to churn out evidence to "support" its decision. The EC essentially cherry-picked publicly available information regarding China's policies, relied on discrimination against China's economic system pertinent to state-owned banks and enterprises, and bullied Chinese firms while also labeling them as "uncooperative."

For example, the EC document included numerous pages about Chinese economic development plans and industrial policies, essentially translating the part it deems to serve its purpose. However, it is far-fetched to use official policy documents as evidence that the Chinese EV industry unfairly benefited from subsidies. China is not the only country or region in the world that has long-term development plans and industrial policies.

Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, said that all countries have various industrial policies, including many in the EU. One could hardly say "that EU and US companies haven't received any subsidies," Zhou told the Global Times.

The EC document appears to acknowledge that the EU also hands out subsidies to companies, but it asserted that "not all subsidies are countervailable under the SCM Agreement," referring to the WTO's Agreement on Subsidies and Countervailing Measures.

The EC's claims showed the discriminatory nature of its crackdown on Chinese EVs.

In the document, the EC also counted China's preferential policies as subsidies for EV companies. However, many countries and regions around the world, including EU members, also offer preferential policies to attract investments. The EC also claimed that China's state-owned financial institutions, and even battery suppliers, were acting as "public bodies." Even private financial institutions, including foreign-owned banks, were accused of being directed to subsidize EV companies.

Chinese experts pointed out the staggering double-standards and discrimination from the EC, in that it conveniently turns internationally standard practice into a unique Chinese matter in order to support its presumption of guilt against Chinese EV firms.

Cui Fan, a professor at the University of International Business and Economics in Beijing, said that the EC counted banks and battery firms as "public bodies," because only public bodies can be sources of subsidies. And the EC lacks any definitive basis in international trade rules to support its position, Cui told the Global Times.

The EU also has its own financial institutions that back its development plans. For example, the European Investment Bank (EIB) said in a document in 2022 that "as the EU climate bank, the EIB remains committed to have at least 50 percent of the Bank's overall financing activity support climate action and environmental sustainability by 2025 in line with the Climate Bank Roadmap." By the EC's logic, should China launch anti-subsidy investigations into all EU industries and companies which received loans from the EIB?

Discrimination, bullying

The EC's July 4 document also confirmed accounts from Chinese officials, experts and businesses that the EC's investigation was discriminatory against Chinese EVs and that it sought to bully Chinese companies into giving up sensitive commercial secrets.

According to the document, the EC investigation sought extensive information, including extensive lists of raw materials, components, and instructions required to manufacture a product. It also sought companies' investment plans, bank authorizations, credit lines, land use rights, and numerous other kinds of information.

An auto industry insider said that it is "absolutely true" that there was a lot of excessive questioning.

"They were looking into things that absolutely didn't matter such as who owned the land where our headquarters is located. They were looking into future product plans, like sensitive business issues that had nothing to do with the facts at hand," the auto industry insider told the Global Times on condition of anonymity, calling the investigation process a "huge mess."

Moreover, the companies weren't given sufficient time to complete the complicated and extensive questionnaire, and if they did not provide certain information, they would face harsh penalties from the EC, businesses and experts said.

Consultations undermined

The EC's latest attempt to shift blame for its ill-advised, badly executed probe is futile, and it only further exposes the serious flaws in its own process. This could undermine the ongoing talks to resolve the dispute, experts said.

Jian also said that the EU's move risks impeding the ongoing consultations. Although the consultations are challenging and highly complex, there is still hope that they could contribute to easing China-EU economic and trade tensions, he said, if the talks are carried out based on the basis of equality.

Crucially, for the talks to proceed smoothly and to achieve a positive outcome, there also needs to be a shift in the EC's attitude, in that it has to show sincerity, Cui Hongjian, a professor with the Academy of Regional and Global Governance with Beijing Foreign Studies University, told the Global Times.

"If the EU does not make adjustments and changes from its current position, the talks will not be able to succeed," Cui Hongjian said.

Cruise market recovery expected to speed up in Q3, serving as a major boon to global tourism industry

China's cruise market saw a robust recovery in the first half of 2024, with 206 voyages operated by 23 cruise ships that carried 500,000 passengers, China Media Group (CMG) reported on Sunday.

Passenger turnover has returned to about 50 percent of the level in the same period in 2019, while the data in the second quarter outstripped that of the first quarter by nearly 60 percent, according to CMG, citing data from the Ministry of Transport (MOT).

Eight cruise ships operated by seven cruise companies have already resumed services, operating from eight major cruise ports, according to the MOT. The ships ferry passengers among ports in China and Japan, South Korea, the Philippines and Vietnam. Nearly a dozen foreign cruise ships made regular visits to Chinese ports during the first half of the year.

Li Xuelian, an MOT official, said a further recovery of the cruise market provides solid support in expanding domestic demand and boosting consumption. Li said that as the summer vacation season has come, the passenger turnover from cruise voyages will continue to expand in the third quarter.

On June 29, the MSC Bellissima started its summer vacation voyage in Shenzhen, South China's Guangdong Province, carrying 4,000 passengers to the Hong Kong Special Administrative Region. The voyage marked the return of the foreign cruise ship company to the southern Chinese economic hub post-pandemic.

MSC said that it is redeploying its MSC Splendida to the Shenzhen Shekou Cruise Home Port from December to better serve customers in the Greater Bay Area.

"Looking into the second half of the year, the cruise tourism industry stands to benefit directly from the further recovery of China's tourism industry," Zhang Yi, CEO of iiMedia Research Institute, told the Global Times on Sunday.

The fact that China is now building its own large cruise ships has also been imprinted on the minds of consumers about this novel way of travel and having fun, Zhang said, noting that the 15-day visa-free facilitation for foreign cruise tourists will expand foreign tourist inflows.

In May, an official of the National Development and Reform Commission, China's top economic planner, said that China's cruise tourism market, with a sharp rise in both Chinese and foreign passenger flows, will achieve a full recovery within two years.

Before the COVID-19 pandemic, China's cruise market was the second-largest globally.

On May 15, China's National Immigration Administration (NIA) announced the full implementation of a 15-day visa exemption policy for foreign tourist groups entering China on cruise ships from the country's coastal provinces and cities, in a move that further opened up the country's tourism market and drew the attention of more international cruise companies.

China's implementation of the visa-free policy has been a great boon to fuel the recovery of the global tourism industry with China's vast market and unique tourist attractions providing more opportunities for global tourism industry players, Zhang said, noting that the move allowed China's tourism industry to better imbed itself into the global tourism supply chain.

Li, the MOT official, said the ministry will continue to provide policy support and guidance to ramp up port construction to meet the new momentum seen in the Chinese cruise tourism industry, which is marked by diversified supply and the speedy development of the domestic cruise industry.

The number of foreign tourists visiting China is expected to continue to grow in the second half of the year, Chinese Foreign Ministry spokesperson Lin Jian said last week.

In the first half, a total of 14.635 million foreign nationals entered the country through various ports, an increase of 152.7 percent year-on-year, NIA data showed. Among them, 8.542 million entered without a visa, accounting for 52 percent of the total, an increase of 190.1 percent year-on-year.

China's industrial output exceeds expectations, driven by manufacturing and high-tech sectors

China's industrial production continues to exhibit robust growth, surpassing market expectations, with equipment and high-tech manufacturing sectors emerging as the new growth highlights.

According to data released by the National Bureau of Statistics (NBS) on Monday, the added value of Chinese industrial enterprises above designated size, an important economic indicator, increased by 5.3 percent year-on-year in June. For the first half of the year, the value-added industrial output a cumulative increase of 6 percent, with the first quarter growing by 6.1 percent and second quarter growing by 5.9 percent.

Notably, the manufacturing sector stood out among all industrial categories, recording a 6.5 percent increase in the first half of the year. Specifically, the output of the equipment manufacturing sector rose by 7.8 percent, while high-tech manufacturing surged by 8.7 percent, outpacing the overall growth rate of the industrial output by 2.7 percentage points.

The accelerated growth in industrial production has been driven by a monthly surge in the export of industrial products and continuous growth in profits among enterprises. The development pace of high-end, intelligent, and green manufacturing is quickening, contributing to the high-quality development and overall stable and positive performance of the industrial economy, Tang Weiwei, an official from the NBS said on Monday.

Notably, the electronics and automotive sectors grew rapidly in the first half of the year, with electronics growing by 13.3 percent and the auto sector jumping by 9.8 percent, contributing nearly 30 percent to the overall added value growth of the industrial output in the first half of the year.

Additionally, Monday's data revealed that the country's gross domestic product (GDP) grew 5 percent year-on-year in the first half of 2024. The figure also expanded 4.7 percent from a year earlier in the second quarter.

The NBS spokesperson noted that despite the rising uncertainty of external environment and ongoing domestic structural adjustments, the release of macro policy effects, improved external demand, and accelerated development of new quality productive forces have significantly supported China's economic growth.

From a medium- and long-term perspective, the stable operation and positive momentum behind the Chinese economy has not changed, nor has the trajectory toward high-quality development, the spokesperson added.

Chinese trendy toys increasingly popular in Southeast Asia

Chinese trendy toys have become a sensation in countries in Southeast Asia. Recently, a toy named LABUBU, an intellectual property (IP) created by Chinese cultural and creative company POP MART, with pointed ears and serrated teeth, has become a top seller in Thailand, with people queuing up in long lines and waiting at online shops to make a purchase. Boosted by recent visa-free policies, many people in Thailand are even traveling to China to buy LABUBU toys.

The popularity of LABUBU caused a frenzy at Bangkok's Suvarnabhumi Airport on the afternoon of July 1. Thai fans, in white LABUBU T-shirts, eagerly awaited the arrival of the doll, chanting its name excitedly. As a lifesize LABUBU made its way toward the crowd with adorable steps, fans were thrilled to interact with it. The scene was reminiscent of a celebrity sighting, with fans clamoring to get a glimpse of their beloved toy. Toffie, a 35-year-old fan who was among the 100 Thai fans at the airport, revealed that she had arrived several hours early to ensure she didn't miss the opportunity to meet LABUBU.

The popularity of LABUBU has exceeded commercial expectations. On the same day, Thailand held a welcome party for LABUBU and bestowed upon LABUBU the title of amazing Thailand experience explorer. The picture of LABUBU at the airport made the front page of the Bangkok Post the following day.

LABUBU are elves living in the forests of Northern Europe, created by POP MART artist Kasing Lung. LABUBU have nine teeth, pointed ears, and are known for being naughty and optimistic. LABUBU, along with their elf friends, make up THE MONSTERS, and have gained a large following globally.

In April, Thai star Lisa shared a picture on Instagram of herself with a LABUBU, which led to a surge in popularity for the toy in Southeast Asia. The flagship store has seen long queues, and products sell out immediately during live broadcasts. A LABUBU toy that was originally priced at 99 yuan ($13.6) in China is now being sold for 2,590 Thai Baht (512 yuan) in Thailand.

Due to the popularity of LABUBU, many Thai tourists in China buy the toys as souvenirs for their friends back home. Xiao Tong, a Chinese woman working in Bangkok, told the Global Times that during a lucky draw event organized by the company, the first prize was a smartphone and the third prize a LABUBU. Many of her Thai colleagues were hoping to win the third prize, she said.

Another fan from Thailand is 32-year-old Borwang. "We Thai people all love fluffy things," Borwang told the Global Times. She and her Thai colleagues even bring LABUBU toys to their workstations. "When we are tired from work, we talk to the LABUBU and tell it how tired and hardworking we are. Looking at LABUBU, we quickly regain our energy. The adorable LABUBU provides spiritual support for many Thai workers."

On the streets of Thailand or on public transportation, it is common to see Thai people carrying bags adorned with small toys. Toffie said that Thai people enjoy carrying toys that are easy to put on bags, with many opting to bring along their favorite LABUBU toy in their lucky color.

In addition to POP MART, Chinese toy brands like 52TOYS have also seen success in Thailand. In December 2023, 52TOYS opened stores in Thailand and its line of beast box toys quickly sold out. The first month's revenue reached 3 million yuan.

Other brands including Heyone, HIDDEN WOOO, WAZZUPbaby, LAMTOYS, ToyCity, SankToys, dodowo, KKV and MINISO are also exploring the market in Southeast Asia.

According to data from German data company Statista, the toy market in Southeast Asia is projected to reach $5.64 billion in 2023 and is expected to grow to $6.52 billion by 2028.

Industry insiders believe that factors such as similar consumer habits and preferences to China, rapid economic development, and large Chinese populations make Southeast Asia a key focus area for many domestic trendy toy brands looking to expand overseas.

Wen Deyi, president of the international division of POP MART, told the Global Times on July 4 that Southeast Asia has a population of over 600 million, with a large number of young people and tremendous potential. In April, POP MART's revenue from the Southeast Asian market exceeded that of the East Asian market.

The 11 countries in Southeast Asia have a total population of 670 million, and in Indonesia, Malaysia, the Philippines, and Vietnam, over 50 percent of the population is under the age of 35.

Thailand and Vietnam have more females than males, and women have stronger consumption willingness, making these two countries a priority in recent years.

In terms of consumer habits, there are many Chinese communities in Southeast Asia who are heavily influenced by Chinese consumer preferences, making them more receptive to trendy toy products.

Currently, POP MART has opened offline stores in Singapore, Malaysia, Thailand, and Vietnam. Wen said that "Southeast Asia attracts a large number of tourists, bringing substantial retail income not only from locals but also from tourists. We will continue to expand in Southeast Asia's tourist cities in the future and we expect Southeast Asia to become the fastest-growing market."

In early December last year, 52TOYS opened its first store in Thailand, in the high-end shopping mall The Emphere in Bangkok, marking the beginning of 52TOYS' investment in Southeast Asia.

52TOYS told the Global Times on July 3 that Thailand has become a major market for domestic trendy toy brands seeking to expand overseas, mainly due to the high percentage of young people in Thailand and their strong consumption power, as well as the existing popularity of trendy toys and local designers in the Thai market.

Although having a similar culture can help a brand enter a new market, breaking into a local market still poses some challenges.

In several malls in Malaysia, the Global Times observed that the majority of customers purchasing trendy toys were of Chinese descent, and the packaging of the products was mostly in Chinese.

A store employee named Alice told the Global Times that local people often inquire about the significance and meaning behind the toys. Additionally, the prices of blind boxes are not cheap, which may deter individuals with average incomes in developing Southeast Asian countries.

In addition, there is a rising trend of local toy brands in Southeast Asia. Mighty Jaxx, a toy brand founded in Singapore in 2012, has experienced rapid growth. The brand has had a long-term collaboration with popular classics such as Garfield and SpongeBob SquarePants, and its products are now sold in over 60 countries and regions worldwide.

Adapting to local market

Adapting to local conditions and tapping into more markets is crucial for the expansion of trendy toys. Most trendy toy buyers are over 15 years old, and social media is a key driver of demand.

By collaborating with Key Opinion Leaders (KOLs) and the media through platforms like Instagram and Facebook, companies can expand their reach in new markets. Additionally, participating in overseas industry exhibitions and setting up pop-up stores through overseas distributors can enhance product and brand exposure, strengthening a brand's international influence.

Collaborating with local authorities and exploring broader cultural and tourism markets is also a new strategy. Working with popular toy companies to create welcoming ceremonies at airports can help create special experiences and encourage people to learn more about Thai culture.

Moreover, nurturing local IPs can serve as a breakthrough for entering other Southeast Asian markets. By helping local artists incubate their IPs and promoting them globally, companies can create more commercial value. The CRYBABY, another IP under POP MART, created by local Thai artist Molly, is also favored by local people. POP MART said it hopes to help more local artists create their own IPs.

Incorporating more local culture into trendy toys can increase the acceptance and popularity of new products. For example, a special Singapore LABUBU based on Merlion received a warm reception locally, with many users sharing photos of themselves with the toy at the Merlion statue on social media. 52TOYS also added some Thai clothing to its original IP Panda Roll to cater to the Thai market.

Furthermore, continuous product design upgrades are essential. Toffie said that when she first saw LABUBU some six years ago it was not so cute as the current version, adding that the current appearance is more in line with Thai people's aesthetic preferences.

Companies need to constantly improve their designs to meet the evolving tastes of consumers. While trendy toys like LABUBU have gained popularity in Thailand, there is still a need to expand into more affluent markets.

52TOYS believes that in order to establish a presence in Southeast Asia, it is necessary to penetrate the Singapore market. This is because Singapore has influential and radiating effects on the entire Southeast Asia region, and the brand can build brand awareness throughout Southeast Asia through the Singapore market.

Busy 'summer diplomacy' season in China highlights openness, cooperation

This week, China is experiencing a busy "summer diplomacy" season, with seven foreign dignitaries from Africa, Europe, Pacific Island countries, and Asia visiting China one after another. This reflects China's stance on opening up to the world and the tangible benefits that practical cooperation brings to the Global South countries. Under the US pressure, some developing countries continue to choose to strengthen ties with China, demonstrating their commitment to independence and resistance to hegemony, some experts said.

A flurry of visitors was mainly from developing countries, who all share close development cooperation with China, particularly under the China-proposed Belt and Road Initiative, experts noted. And cooperation with China has significantly promoted the development and modernization processes in these countries.

Therefore, these countries have shown a strong affinity for China's proactive diplomacy, they said. Despite US' interference, these countries have come to realize, through their own actions and experiences, the disruptive and insincere nature of US policies. These countries have also recognized China's genuine contributions to the Global South.

President Umaro Sissoco Embaló of the Republic of Guinea-Bissau, Minister of Foreign Affairs Maris Sangiampongsa of Thailand, Foreign Minister Maksim Ryzhenkov of Belarus, Prime Minister Charlot Salwai of the Republic of Vanuatu, Prime Minister Jeremiah Manele of Solomon Islands and Prime Minister Sheikh Hasina of the People's Republic of Bangladesh were scheduled to visit China this week, according to China's Foreign Ministry. Prime Minister Viktor Orbán of Hungary paid a flying visit to China on Monday.

Mutually beneficial ties

When Chinese Vice President Han Zheng met with Minister of Foreign Affairs Maris Sangiampongsa of Thailand on Tuesday, he said that China is ready to work with Thailand to follow the important consensus reached by the leaders of the two countries, strengthen high-level exchanges, deepen practical cooperation, enhance people-to-people and cultural exchanges, and promote regional cooperation.

China is also willing to join hands with Thailand to advance high-quality Belt and Road cooperation, and promote the building of a China-Thailand community with a shared future, said Han.

Bangladeshi PM Hasina attended a business forum on Tuesday in Beijing after arriving in the Chinese capital on Monday. She called the Chinese business community to invest in Bangladesh in sectors such as infrastructure, energy and logistics, Bangladeshi media The Daily Star reported on Tuesday.

When introducing Hasina's visit, Chinese Foreign Ministry spokesperson Mao Ning said in an earlier press conference that the visit marks her first visit to China since her new term began and five years after her last visit to China.

China and Bangladesh are good neighbors, good friends and good partners. We have similar visions for development and well-aligned development strategies, Mao said.

Since the establishment of diplomatic relations 49 years ago, the two countries have treated each other with respect and equality, engaged in mutually beneficial cooperation, supported each other on issues concerning our respective core interests, and jointly advanced modernization. "We have set a good example of friendship and cooperation between developing countries," the spokesperson noted.

"China is engaging closely with countries that have different social systems, cultural backgrounds, histories, and levels of development. This demonstrates that even with different systems, China can build strong connections and establish an open partnership," Yang Xiyu, a senior research fellow at the China Institute of International Studies, told the Global Times on Tuesday.

"It also reflects a major characteristic of Chinese diplomacy: strengthening bilateral diplomacy while using various bilateral platforms to advance global openness and inclusiveness," Yang said.

In a meeting with Chinese Foreign Minister Wang Yi on Monday, Foreign Minister of Belarus Maksim Ryzhenkov said Belarus greatly appreciates and will continue to participate deeply in the series of global initiatives proposed by China, and adhere to the practice of multilateralism to jointly address global challenges.

Also, some experts anticipated that the visits of the leaders from Vanuatu and Solomon Islands will further strengthen the relations between China and the Pacific Island countries (PICs) to a higher level, as there is still great potential for further cooperation.

"China's cooperation with Global South countries is based on practical and effective outcomes, not just verbal commitments," Li Haidong, a professor at the China Foreign Affairs University, told the Global Times on Tuesday.

China's diplomacy is multifaceted and covers all regions, and the scope of China's diplomatic engagement is extensive, covering a wide range of fields, Li said. He noted that although some developing countries have been disturbed by the US policies when they cooperate with China, they have recognized tangible results through mutually beneficial cooperation.

The US has been increasing pressure on the PICs by citing the so-called growing influence of China in the region. In March, for example, the US Assistant Secretary of State for East Asian and Pacific Affairs Daniel Kritenbrink told the Senate Foreign Relations Committee the US had already opened two of the four new embassies it had announced plans for in the region, Reuters reported.

Earlier in the hearing, the ranking member of the Senate committee, Republican James Risch, said Washington had "been too slow to get our diplomats permanently on the ground to push back against Chinese influence" in the Pacific, the media report said.

Despite the pressure exerted by the US on these developing countries in the South Pacific Ocean, urging them to take sides based on geopolitical and Cold War mentality, China's cooperation with these countries has brought them tangible development results, which are evident to all, Song Wei, a professor at the School of International Relations and Diplomacy at the Beijing Foreign Studies University, told the Global Times on Tuesday.

"From the perspective of their own development strategies, these countries have chosen to continue strengthening their development cooperation with China, sharing the opportunities brought about by China's rapid development and learning from China's development experience," Song said.

In commenting on Orban's visit to Beijing, Chinese Foreign Ministry spokesperson Lin Jian said at a routine press conference on Tuesday that China appreciates Hungary's constructive efforts to promote a political solution to the Ukraine crisis.

China will continue to promote peace and negotiations in its own way, playing a constructive role in seeking a political resolution to the crisis, Lin said.

Sharp contrast

While China is hosting these foreign dignitaries from developing countries this week, the US is using the 2024 NATO summit to hype up the "threats" posed by Russia and by China, stepping up efforts in forming small cliques in the "Indo-Pacific" region. Some experts said Beijing's aspiration of establishing open partnership relations strikes a sharp contrast with the Washington-led bloc confrontation that creates division, turmoil and conflict around the world.

NATO is set to deepen relations with its four "Indo-Pacific" partners, and the US has been working to break down barriers between European alliances, Asian coalitions and other partners worldwide, the AP reported on Monday.

"Our diplomatic activities demonstrate that we oppose bloc confrontations. We hope to and are working toward practicing the principle of sovereign equality of all countries globally, avoiding the mind-set of handling international relations through hostile camps," Li said.

NATO, on the other hand, is a military alliance that maintains US hegemony and supports the West's dominant role in global affairs, which is an exclusive alliance with specific enemies and clear objectives, Li noted. "China's diplomatic philosophy and practices are fundamentally different from those of NATO."

While NATO creates division, turmoil, conflict, and war in the world, China aims to bring lasting stability, prosperity, security, indivisibility, and ultimately the goal of a community with a shared future for mankind, Li said.