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.

China releases first investigative report on ecological environment near Huangyan Dao, no cyanide found

China on Wednesday released the first investigative and assessment report on the ecological environment near Huangyan Dao (also known as Huangyan Island) in South China Sea, revealing that the area enjoys excellent eco-environmental quality.

As the Philippines accused Chinese fishermen of destroying coral reefs around Huangyan Dao due to "illegal actions such as harvesting endangered giant clams" in May, Chinese experts believe that Manila's move to shift blame to China in an attempt to pursue a new legal battle is doomed to be futile in light of the evidence and facts revealed in the report.

From May to June, Chinese scientific researchers carried out an unprecedentedly large-scale on-site investigation to assess the ecological and environmental conditions in the Huangyan Dao area. This included evaluating seawater quality, marine sediment quality, biological quality, floating litter, as well as coral communities, reef-dwelling fish, and other typical biological groups, with the assistance of satellite remote sensing analysis.

The results of the research revealed a good seawater and marine sediment quality, which was below-standard levels of pollutants, zero cyanide detected of seawater samples, an abundant distribution of giant clams, and a healthy state of the coral reef ecosystem.

Experts noted that this scientific research shows that China's effective governance of Huangyan Dao has played a positive role in protecting the island's ecological environment.
A harbor of corals

Huangyan Dao located in the southeast of Zhongsha Qundao, serving as a key traditional fishing area and natural shelter in China. It is also a vital "harbor" for maintaining marine biodiversity in the South China Sea, holding substantial strategic and ecological significance.

Since last year, some Philippine politicians and media have repeatedly hyped up the topic of falsely claiming that Chinese fishermen used cyanide to fish in waters off Huangyan Dao and deliberately destroyed the traditional fishing grounds of Philippine fishermen.

However, according to the report, no cyanide, copper, lead, cadmium, total chromium, mercury, or arsenic were detected at any survey sites.

In response to Global Times' question on whether it means there was no cyanide fishing in the area, Lin Kui, the deputy director of South China Institute of Environmental Sciences under China Ministry of Ecology and Environment, confirmed the conclusion.

During the more than 20 days of scientific research, the joint investigation team did not find fishermen illegally using cyanide for fishing, Lin stressed. He also cited published academic paper that Filipino fishermen have used cyanide to poison fish since 1930s, and even during the global pandemic years, there were still reports of Filipino fishermen using cyanide to poison fish at sea.

"We sincerely hope that countries around the South China Sea can stop using cyanide for fishing and other destructive fishing activities, and work together to protect the fragile ecosystem of the South China Sea," Lin said.
Results also show that it meets the water quality requirements for coral growth in the South China Sea. There are also no signs of seawater eutrophication.

The hard coral communities were in healthy condition, while live coral cover in the northeast part of Huangyan Dao reached as high as 37.1 percent. This is comparable to the Great Barrier Reef in Australia that contains the world's largest collection of coral reefs, the report showed.

The scientific research recorded 109 species of hard corals belonging to 34 genera and 12 families, marking the highest species diversity ever documented. The average hard coral cover reached 28.6 percent, higher than the survey results in 2015, with sufficient recruitment of juvenile corals.

All the hard coral species were listed as national Class II protected wildlife in China. Among the hard corals in this survey, 41 species were classified as Near Threatened and 14 species as Vulnerable in the International Union for Conservation of Nature's Red List of Threatened Species (IUCN Red List).

The species diversity of coral communities was relatively high, as the survey recorded 125 species of coral reef fish from 23 families on-site.

International scholars generally believe that global warming is the major reason behind the rapid degradation of coral reefs (coral bleaching) on a global scale. But hard coral communities near Huangyan Dao demonstrate strong resistance and a tolerance to rising sea temperatures, making the island a healthy habitat for corals and related species in the South China Sea.

According to the survey results, the bleaching of hard corals in Huangyan Dao remained at a low level (below 1 percent). No coral disease was identified, and the coral mortality rates also remain low (below 1 percent).

Since China began to exercise long-term effective administrative jurisdiction over Huangyan Dao, it has gradually repaired the marine pollution and ecological damage caused by previous destructive fishing by the Philippines in the area, Yang Xiao, deputy director of the Institute of Maritime Strategy Studies under the China Institute of Contemporary International Relations, told the Global Times.

He noted that Huangyan Dao used to be a target range for the US military, and the coral reefs there have also been severely damaged by the remnants of shells for a long time.
It is worth noting that this survey revealed a rich distribution of giant clams in the lagoon of Huangyan Dao. Giant clams, the largest marine bivalve inhabiting coral reefs, is listed as key protected wildlife in China and is included in the IUCN Red List. The giant clams, as a reef-building organism, contributes to the formation and stabilization of coral reef frameworks, which is essential for the support of coral reef development and the maintenance of a balanced ecosystem

Lin told the Global Times that since 2016, China has explicitly banned the sale and purchase of giant clams and their products. This regulation has been strictly enforced, and based on on-site observations, it is no longer possible for illegal digging and harvesting of giant clams to occur on Huangyan Island.

The survey also recorded blue coral, fire coral, sea anemone, soft coral and other coral reef ecological communities. These organisms are not only an important component of reef biodiversity, but also a hot resource of the latest marine natural products and marine medicine. With diverse bioactive compounds, they have great potentials in the development of new drugs, cosmetics and healthy food.
Groundless accusation

In recent years, for promoting the scientific conservation and long-term sustainable use of global fishery resources, China has set a model for global marine ecological preservation through innovative measures, including strict annual fishing moratorium policies in its territorial waters.

The South China Sea summer fishing moratorium system, which was officially implemented in China since 1999, has been in effect for 25 years. This system not only demonstrates the Chinese government's commitment to protecting marine fishery resources, but also showcases China as a responsible global leader in safeguarding the marine ecological environment and promoting sustainable fisheries development.

However, China's efforts are not always understood. The Philippines and the US have consistently promoted negative narratives targeting China, leveling accusations of environmental destruction in the South China Sea and hinting at possible court action against the country.

In February, the Philippines claimed that Chinese fishermen were using cyanide at Huangyan Dao. However, Chinese marine experts have pointed out that the Philippines has, in fact, been using cyanide for fishing since 1962, and approximately 65 tons of cyanide are sprayed onto coral reefs each year, according to World Wildlife Fund. This severely damaged the marine ecology of the South China Sea.

Additionally, in 2023, the Center for Strategic and International Studies (CSIS) issued a report titled "Environmental Threats to the South China Sea." In the report, the Center claims that "increased fishing, dredging, and land fill, along with giant clam harvesting in recent decades have taken a devastating toll on thousands of species found nowhere else on earth."
According to scholars who are directly engaged in ecological surveys and research in the South China Sea, many conclusions in this report are based on little to no scientific proof.

"Only on-site scientific investigations with facts are worthy of respect. This scientific report provides a strong rebuttal to the Philippines' proposed environmental arbitration against China. In the face of facts, the Philippines' futile attempts are doomed to fail," said Yang.

Xi’s letter encourages Serbian steelworkers to strive for better future, contribute to better bilateral ties

Editor's Note:

Chinese people believe that letters are as valuable as gold. For thousands of years, letters, across mountains and oceans, have been delivering the writers' sentiments and conveying friendship and expectations.

Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee and Chinese president, has managed to find time to reply to some letters from different sectors of the society and different parts of the world despite his busy work schedule.

Through his letters, Xi has corresponded with international friends from all walks of life on numerous occasions, part of a series of excellent stories of China's international exchanges in the new era. The letters have also added vivid color to the diplomacy between China and other countries.

The Global Times traced and contacted some of the recipients of Xi's letters to hear the inspiring stories behind the letters and their communications with the Chinese president.

In this installment, Serbian steelworkers share with the Global Times their excitement at receiving Xi's reply letter before the Chinese president's visit to Serbia and the story of how close cooperation between the two countries revived the century-old Smederevo steel plant.
At around 8 pm on April 30, 2024, when Serbians were ready to embrace the May Day holiday and the Orthodox Easter, Nenad Cvetanovic, head of operations at the hot mill at HBIS Smederevo steel plant, or Hesteel Serbia, got a phone call asking him to stay in the plant because the Chinese Ambassador to Serbia Li Ming would "come to share something with us."

"That was amazing," Cvetanovic and his colleagues thought when they got to know what the surprise was - Chinese President Xi Jinping had replied to their letter days before his second state visit to Serbia after eight years.

Cvetanovic first had the idea to write a letter to Xi in February 2024 when he read a media report saying that the Chinese president might be visiting Serbia again. The idea was widely embraced by his colleagues.

In the letter signed by workers from different departments at the steel plant, they expounded on the latest developments at the plant and its important role in the local economy and people's livelihoods, and they thanked Xi for his care and support for the joint venture located in Smederevo, a small city about 60 kilometers southeast of the Serbian capital Belgrade.

In his reply letter dated April 29, Xi recalled his visit to the plant in June 2016 when he deeply felt the workers' support for the mutually beneficial cooperation between China and Serbia, and their high expectations for a bright future for the steel plant, according to Xinhua News Agency.

It is a great pleasure to learn that the steel plant has turned losses into gains quickly after the investment of a Chinese-funded enterprise, with the jobs of more than 5,000 employees guaranteed, and thousands of families enjoying a peaceful and happy life, Xi said in the letter.

The development of the steel plant could not have been achieved without the dedication and hard work of the workers, who have been working diligently for the quick growth of the steel plant and have written a new chapter for the iron-clad friendship between China and Serbia.

I give you the "thumbs up," Xi said.

The reply letter shows that our efforts are recognized and appreciated and we feel honored and encouraged, Bojan Popovic, head of department of materials management and maintenance at the Hesteel Serbia, told the Global Times.

"It reinforced our belief that the strong bond between China and Serbia is built on the efforts of ordinary workers like us," Popovic said. "We are proud to be part of this partnership and to contribute to the growth and success of our steel plant, and thus, to the development and strengthening of our economic ties."

Rebirth of a plant

The steel plant, first established in 1913, has long been a pillar of former Yugoslavia's metal industry, but it encountered difficulties in the 1990s. The plant then entered two decades of struggle of survival and, in 2012, then owner US Steel Corporation sold the plant to the Serbian government, leaving it with more than 5,000 employees and massive liabilities.

The Global Times learned from senior workers of the steel plant that production was frequently halted at that time. The first thing they would do after waking up in the morning was to check whether smoke was rising from the plant's chimney or not. People did not dare to get married or have babies because they feared they would lose their jobs as the factory could close at any moment.

The light of hope arrived in April 2016 when China's Hesteel Group purchased the plant at a price of 46 million euros ($49.55 million), months after China and Serbia signed in November 2015 a memorandum of understanding within the framework of the China-proposed Belt and Road Initiative (BRI).

During President Xi's state visit to Serbia in June 2016, he made a trip to the steel plant and interacted with workers in the dining room, encouraging them to work hard to bring benefits to local residents.

The purchase and Xi's visit greatly boosted the morale of all the workers; smiles returned to their faces and they started to "plan for the future."

The Global Times learned that Chinese executives from Hesteel did a thorough investigation, finding out that the factory possessed quite good industrial bases and could produce some competitive products even with its then outdated equipment; but the implemented cost control was ineffective.

Therefore they enhanced the management of the steel plant, combining Chinese experience with local practices, streamlined the production process, increased workers' salaries, upgraded equipment and expanded recruitment, and made efforts to tackle the pollution problem.

Upholding the principle of localization of corporate culture, personnel, and benefits, the 13-member Chinese executive team and 5,000-strong Serbian managers and workers' body strived in solidarity to revive the plant and raise it to new heights.

Through unremitting efforts by and from both sides, the plant turned losses into profits in just a few months by year-end of 2016, made a record production volume of 1.77 million tons in 2018, marked a best-in-history revenue of 200 million euros in 2021, and the output value reached 1 billion euros in 2022, Song Sihai, executive director of Hesteel Serbia, told the Global Times.

Joint efforts for future

Plant worker Aleksandar Duncevic recalled all the changes brought about by the takeover and the joint efforts by the Chinese buyer and local Serbian staff, which gave Duncevic "a strong sense of certainty and security," and allowed him to "make plans for the future."

Felic Nenad, who was among the crowds to welcome Xi in 2016, described the China-Serbia cooperation as a "light at the end of the tunnel."

"Now we have new production lines, higher output, and cleaner air… It made a big difference for our city and our country," Nenad told the Global Times.

The Global Times learned that after an investment of 300 million euros to enhance energy efficiency and environmental protection in 2022, the company marked a new milestone in 2023 by dropping dust pollution to 34.8 mg/Nm3, the first time in the plant's history and way lower than EU standards.

Cvetanovic was obviously excited when talking about the plant's new gasholder, upgraded furnace, and finishing mill - industry terms that are concrete evidence of Hesteel Serbia's bright future.

Stefan Nesic, head of temper mills, cutting, packaging, and shipping in the cold rolling mill, started to work at Hesteel Serbia in late 2017. But through conversations with colleagues who were there during Xi's visit, he got the impression that "the visit was of great importance for the morale of the entire factory and has kept encouraging the Serbian workers to join hands for an even better future."

Nesic also told the Global Times that he appreciates the company's comprehensive support for employees from steady paychecks and an improved working environment, to future career development, including his own pursuit of doctoral studies in metallurgical engineering at Belgrade University.

"Our expectations for the future are very positive and optimistic, as the factory shows that it cares about process improvement, new investments, environmental protection, and the quality of its personnel," Nesic said, expressing his hope that Hesteel Serbia will be an increasingly competitive entity in the European and international steel markets.

In 2016, factory workers presented a round plate with the silhouette of the steel plant to President Xi as a gift, writing the first chapter of this time-weathered factory's new story featuring China-Serbia cooperation.

Now, the success of Hesteel Serbia is an embodiment of this "ironclad" friendship and continues to tell success stories of the BRI cooperation.

"Future" is a word that appeared frequently in conversations with Smederevo steelworkers, which is in sheer contrast with the uncertainty and insecurity of the past.

The future of the steel plant is being authored by every Serbian and Chinese personnel in pursuit of a better life; the future of China-Serbia relationship is to be determined by numerous Serbian and Chinese people who have made contribution to boost the warm bilateral exchanges and stronger ties in trade, economic cooperation, culture, and beyond.

‘PV-Storage-Charging’ Integrated Microgrid Connected to the Grid Supports FAYN’s Green Development in Nanjing

On May 15, officials from the State Grid Nanjing Power Supply Company visited the Nanjing FAYN Piston Ring Co, Ltd (FAYN), Lishui district, Nanjing, to inspect the "PV-storage-charging" integrated intelligent microgrid, aiming to ensure the flawless operation of all equipment and guarantee uninterrupted production for the company.

This integrated intelligent microgrid functions akin to a small-scale power system that generates renewable power through PV equipment, regulates power with energy storage devices, and adjusts power supply and demand via charging posts with flexible loads. Thanks to an energy management system, the microgrid can achieve self-control, protection and management, securing continuous power supply within the area.

Since 2021, under the guidance of the State Grid Nanjing Power Supply Company for green and energy-saving transformation, FAYN has replaced the traditional energy sources for production and daily necessities with electricity to ensure all-electric plants. This initiative has boosted the company's production speed and efficiency by nearly 30%. Moreover, collaborative efforts have been made to create an energy efficiency management system enabling real-time monitoring of electricity, water and gas consumption data for various equipment, which supports the company in scientific energy use with higher efficiency and lower cost.
The State Grid Nanjing Power Supply Company has also recommended FAYN to construct a 4.79-megawatt PV power station, and install 10 60-kilowatt fast charging posts and two 7-kilowatt slow charging posts. Together with the energy efficiency management system, an effective energy complementary network will take shape, securing stable power supply during peak electricity consumption hours while significantly improving the safety and stability of the power grid.

In April of this year, FAYN's 2-megawatt/6-megawatt-hour user-side energy storage station went into operation. Supported by four key factors - PV, energy storage, charging posts and an energy efficiency management system, the first user-side intelligent microgrid in Lishui district was successfully established.

Since it was connected to the grid, the microgrid has provided 7.16 million kilowatt-hours of electricity annually, equivalent to saving 2,348 tons of standard coal and reducing carbon dioxide emissions by 7,138 tons. This has led to a reduction in energy consumption costs by 2.24 million yuan($0.31 million).

Chinese lidar manufacturer Hesai sues US Department of Defense over inclusion in a list for alleged ties to China's military

Chinese lidar manufacturer Hesai Technology Co officially filed a lawsuit against the US Department of Defense on Monday over being added to a list of companies for allegedly working with the Chinese military, the Global Times learned on Tuesday.

In the complaint filed with the Washington Federal Court, Hesai stated that its inclusion on the so-called 1260H list had led to "damaged reputation, substantial stock price decline, and missed business opportunities." Hesai, which is listed on the Nasdaq, urged the court to order the US Department of Defense to remove it from the list or declare the list unconstitutional.

Hesai is known for its leading radar products, which are primarily used in advanced driver-assistance systems (ADAS) for both passenger and commercial vehicles. It was included on the list by the US Department of Defense in January, along with over a dozen other Chinese companies including Yangtze Memory Technologies Co.

"Hesai lidars are designed for civilian use only. We have no affiliation with the Chinese military and remain committed to correcting the record and protecting our reputation," a spokesperson for Hesai told the Global Times on Tuesday.

The spokesperson added that the US government has yet to offer any meaningful response to requests from the Chinese company or made any attempts to resolve the issue outside of court.

While the list itself doesn't impose specific sanctions at present, according to the US media, the associated legislation will prevent the US Department of Defense from engaging in contracts with any of the listed companies for the foreseeable future. Observers said this also poses substantial reputational risks for Chinese companies and could potentially compel the US Treasury Department to levy sanctions against the firms.

Foreign Ministry spokesperson Wang Wenbin voiced strong opposition to the US Department of Defense's update of the "Chinese Military Company List" in February.

"China firmly opposes the US overstretching the concept of national security, setting up all kinds of discriminatory lists, going after Chinese companies and disrupting normal economic and trade cooperation between China and the US," he said.

A spokesperson for the Ministry of Commerce said on May 10 that China would take all the necessary measures to defend the legtimate rights of Chinese companies in response to US abuse of export control measures.

China urged the US to immediately cease the relevant incorrect practice, which is disrupting the security and stability of global industrial and supply chains.