26 July 2024

Welcome to China-EU Dynamics! During the past fortnight, several big events happened in China, including the third plenary session of the 20th CPC Central Committee, reconciliation talks among all 14 Palestinian factions, and  Ukrainian FM Dmytro Kuleba's visit. We will bring you details of these events as well as important interaction between China and Europe in this last edition before summer break. Enjoy reading!

THIRD PLENUM: CHARTS REFORM COURSE

The 20th Central Committee of the Communist Party of China concluded its third plenary session on 18 July. This pivotal gathering of the leading decision-makers of the country delved into the new circumstances and challenges facing Chinese modernization, formulated systemic plans for further deepening reform across the board, and provided an important window for the world on China’s pursuit of high-quality development and high-standard opening up. (Full text of the communique of the session)

The CPC Central Committee held a press conference on the guiding principles from the plenum.  Here are the highlights :

• Adoption of the Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization is the most important outcome of the plenum. The resolution put forward more than 300 important reform measures, all of which involve reforms on the levels of systems, mechanisms, and institutions
• China vows more opportunities for private enterprises
• China to enhance green, low-carbon and circular development
• New quality productive forces will be one of China's top priorities
• China to deepen reforms and promote its path to modernization by rule of law
• China to foster stable development of the real estate market

Pursuing high-standard opening up. Opening up is a defining feature of Chinese modernization. China will remain committed to the basic state policy of opening to the outside world, promote reform through opening up, and develop new institutions for a higher-standard open economy.

China will promote alignment with high-standard international economic and trade rules and harmonize rules, regulations, management, and standards relating to property rights protection, industrial subsidies, environmental standards, labor protection, government procurement, e-commerce, the financial sector, and other areas, in an effort to create an institutional environment that is transparent, stable, and predictable. 

China will safeguard the WTO-centered multilateral trading system, actively participate in the reform of global economic governance, and provide more global public goods.

China will foster a first-rate business environment that is market-oriented, law-based, and internationalized and protect the rights and interests of foreign investors in accordance with the law.

China will expand the catalog of encouraged industries for foreign investment, shorten the negative list, remove all market access restrictions in the manufacturing sector, and promote wider opening in the fields of telecommunications, the internet, education, culture and medical services.

China will ensure national treatment for foreign-funded enterprises in terms of access to factors of production, license application, standards setting, and government procurement. 

Recently, the country has implemented a unilateral visa-free policy for some countries, which has been widely welcomed and achieved good results. It will further improve the relevant measures to make it more convenient for people from outside the mainland to live, receive medical services, and make payments on the mainland.

Direction of China's diplomacy. Chinese modernization is the modernization of peaceful development. In diplomatic work, China remains firm in pursuing an independent foreign policy of peace and is dedicated to promoting a human community with a shared future. China will stay committed to the common values of all humanity, pursue the Global Development Initiative, the Global Security Initiative, and the Global Civilization Initiative, and call for an equal and orderly multi-polar world and universally beneficial and inclusive economic globalization. China will get involved in leading the reform and development of the global governance system. It will resolutely safeguard its sovereignty, security, and development interests.

CHINA READY TO ENHANCE MUTUAL TRUST WITH THE EU

Chinese Premier Li Qiang sent a congratulatory message to Ursula von der Leyen on her reelection as President of the European Commission. 

Li said that the Chinese government always attaches great importance to developing relations with the EU and values the important role and influence of the European Commission. At present, China-EU relations have shown a momentum of steady development, and bilateral dialogue and cooperation have achieved positive results. China is ready to work with the EU to consolidate the political foundation of China-EU relations, enhance strategic mutual trust, strengthen mutually beneficial cooperation on all fronts, jointly meet global challenges, and make greater contribution to improving the well-being of the two peoples and safeguarding world stability and prosperity.

TOP DIPLOMATS' MEETING

Chinese FM Wang Yi met with HR/VP Josep Borrell in Vientiane, Laos on Friday. 

Wang Yi:

• China and the EU should stay committed to the partnership, keep to the overall direction of cooperation. China will, as always, support the European integration and the EU's maintaining on strategic autonomy.
• It's hoped that the new EU leadership will pursue a rational and pragmatic policy towards China, look at China's development in an objective and friendly way, and realize a smooth transition in China-EU relations.
• The EU's anti-subsidy investigations into China's EVs is typical trade protectionism and is not conducive to global green transformation.
• On the Ukraine crisis, China has always insisted on urging peace and promoting talks and a political solution. China supports the EU in playing a leading role in exploring a balanced, effective and sustainable European security architecture.

Josep Borrell:

• The EU maintains an independent policy towards China. It is not involved in curbing China's development and is happy to see China's rise.
• The EU has always maintained that Taiwan is not a country and the government of PRC is the sole legitimate government representing the whole of China. It will continue to pursue the one-China policy.
• The EU attaches importance to the peace initiative of China and Brazil on the political settlement of the Ukraine crisis, congratulates China for promoting the reconciliation of Palestinian factions, and is willing to work with China to promote peace.

PALESTINIAN MOVE HIGHLIGHTS CHINA'S ROLE FOR PEACE

At China’s invitation, senior representatives of 14 Palestinian factions held reconciliation talks in Beijing from July 21 to 23. Chinese FM Wang Yi attended the closing ceremony of the talks and witnessed the signing of the Beijing Declaration on Ending Division and Strengthening Palestinian National Unity by the Palestinian factions.

In his remarks, Wang pointed out that the gathering of 14 Palestinian factions with the greater good of their nation in mind marks an important historical moment in the Palestinian liberation cause. The most important consensus of the talks is to achieve reconciliation and unity among all 14 factions, the most central outcome is the reaffirmation of the PLO as the sole legitimate representative of the Palestinian people, the most outstanding highlight is the consensus on post-conflict governance in Gaza and forming an interim national reconciliation government, and the strongest aspiration is to realize true independent statehood of Palestine in accordance with relevant UN resolutions.

Wang Yi also put forward a three-step initiative regarding the ongoing Gaza conflict. First step: achieving comprehensive, lasting and sustainable ceasefire in the Gaza Strip as soon as possible, and ensuring unimpeded access to humanitarian aid and rescue on the ground. Second step: making joint efforts toward post-conflict governance of Gaza under the principle of “the Palestinians governing Palestine.” Third step: making Palestine a full UN member state and beginning to implement the two-State solution. These three steps are interlocked and all of them are indispensable.

EU Special Representative for the Middle East Peace Process Sven Koopmans extended congratulations on and appreciated China's successful mediation.

OFFICIAL VISIT OF UKRAINE FM

Ukrainian FM Dmytro Kuleba is on a visit to China. Chinese FM Wang Yi held talks with him in Guangzhou on July 24. Noting that China and Ukraine are friends to each other, with their strategic partnership established more than a decade ago, Wang called on the two countries to maintain communication and exchanges, enhance mutual trust, carry forward traditional friendship, promote the people-to-people bond, and achieve sound and steady growth of bilateral relations. As Ukraine’s largest trading partner and the largest export destination of its agricultural products in recent years, China will continue to increase food imports from Ukraine and work together to keep logistics corridors open and ensure global food security, Wang added.

The two FMs exchanged views on the Ukraine crisis. Wang said that China remains firmly committed to working for a political settlement of the crisis. President Xi Jinping laid out four principles which provide the fundamental guidance for seeking a political settlement of the Ukraine crisis. On this basis, China and Brazil jointly issued six common understandings that include the three principles for deescalating the conflict, the three elements for peace talks and the three appeals on humanitarian protection. The common understandings also highlight the need to prevent nuclear risks and protect the stability of industrial and supply chains. The common understandings represent the broadest common ground of the international community and have been widely supported and endorsed. China supports all efforts conducive to peace and will continue to play a constructive role to enable a ceasefire and resume the peace talks. China cares about the humanitarian situation in Ukraine and will continue to provide humanitarian aid supplies.

Noting that China is a great country, Kuleba said that China and Ukraine are each other’s strategic partners and important economic and trade partners. Ukraine supports China’s position on the Taiwan question and will remain committed to one China. Ukraine highly appreciates China’s active and constructive role to promote peace and uphold the international order. Ukraine attaches importance to China’s views.

A NEW ROUND OF SHUTTLE DIPLOMACY ON UKRAINE CRISIS. Starting from July 28, China's special envoy on Eurasian affairs Li Hui will travel to Brazil, South Africa and Indonesia to further exchange views on the current situation and the process of peace talks, discuss the deescalation of the situation, and accumulate conditions for restoring the peace talks. 

CHINA REGISTERED STRONG ECONOMIC GROWTH IN H1

China released the data of its economy in H1. The country's GDP grew 5% YoY in the period to 61.68 trillion yuan (about 8.65 trillion U.S. dollars). Its imports and exports exceeded RMB 21 trillion for the first time, up 6.1% YoY. The IMF revised up its 2024 Chinese GDP growth forecast to 5% in the latest update to its World Economic Outlook.

During this period, 26,870 foreign-invested companies were set up in China, up by 14.2% YoY. Actual utilized foreign investment in manufacturing increased by 2.4% compared with the same period last year.

China has remained the world’s largest trader in goods for 7 years running, and the world’s largest exporter and second-largest importer for 15 consecutive years. It has been among the world’s top three sources of outbound investment for 11 years in a row. The funding China provide has benefited 155 countries and regions in the world.

OTHER NEWS

“Steel camel” across the Eurasian continent. The China-Europe Railway Express has run 10,000 trips and shipped over one million TEUs of goods, up by 11% YoY since early this year. Up to now, the service arrives in 224 cities in 25 European countries and connects over 100 cities in 11 Asian countries. The railway transports over 50,000 types of goods in 53 categories, with 17 time-tabled freight trains per week. 

A report worth reading. The China Institute of International Studies (CIIS) released the Report on the Implementation Progress of the Global Security Initiative on July 18. The Report presents a full picture of what has been achieved in the past two years and more since the GSI was put forward by President Xi Jinping. China stands ready to strengthen communication and exchanges on security visions and policies with all sides, work together to advance international security cooperation, promote sustainable development and sustainable security, and bring more stability to this turbulent world.

Disclaimer: The views and opinions expressed in the newsletter are those of the authors and do not necessarily reflect the official policy or position of China or our Mission, except those from the official website of the Chinese Foreign Ministry, our Mission and other Chinese governmental websites.

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