China's leading Tsinghua University announced on Wednesday that Chinese scientists had made a breakthrough in the world's first patient brain-computer interfaces (BCI) rehabilitation trial on Monday, one day after Tesla CEO Elon Musk announced the success of a procedure to implant Neuralink's brain chip into the first human patient.
The Chinese scientists' research has met the highest standards of safety and their achievements are expected to be commercially available within the next two years, scientists involved in the research told the Global Times on Wednesday.
The Global Times learned from the university that a team, led by principal Biomedical Engineering researcher Hong Bo from the School of Medicine with Tsinghua University, designed and developed the wireless minimally invasive implanted BCI technology device NEO (Neural Electronic Opportunity). The NEO was successfully implanted into a patient's brain for the BCI-assisted treatment trial at the Xuanwu Hospital in Beijing, on October 24, 2023. The subject of the trial is a 54-year-old male patient with complete spinal cord injury of the cervical spine after a car accident. He has been paralyzed for 14 years in all four limbs since then.
After implanting two coin-sized BCI processors into his brain, scientists successfully collected intracranial neural signals of the somatosensory motor brain area of the patient.
Ten days after the surgery, the patient was discharged and returned home. When used at home, the external device of the NEO supplies power to the internal device through the scalp and receives neural signals from the brain, which are then transmitted to a computer or mobile phone through decoding algorithms to achieve BCI communication.
This system uses near-field wireless power supply and communication technology. The implanted internal device in the skull does not require a battery and can be used for a lifetime, the Global Times learned.
After three months of home-based BCI rehabilitation training, the patient was able to use brainwave activity to drive an air-powered glove and drink water independently, with a decoding accuracy rate of over 90 percent.
The American Spinal Injury Association (ASIA) clinical score and somatosensory evoked potential response of the patient's spinal cord injury has also significantly improved. Pictures and videos provided by Tsinghua University show the first patient successfully initiating brain-controlled grasping of a mineral water bottle through the wireless minimally invasive BCI. One day before the Chinese team's research was revealed, Musk said that his BCI company, Neuralink, had successfully completed the first human brain device implantation surgery. Although the surgery was a success, Musk's invasive BCI technology experiment has sparked controversy in terms of surgical safety and medical ethics in the US.
The Chinese research team told the Global Times that their project, which is different from Neuralink's "mind control" device Telepathy, has achieved two major breakthroughs in wireless minimally invasive BCI technology.
On one hand, the NEO is implanted, burying the internal device in the skull, with electrodes covering the dura mater between the skull and the cerebral cortex, which protects neural tissue. It ensures the quality of intracranial signals without damaging neural tissue. On the other hand, it uses near-field wireless power supply and signal transmission. The implanted internal device in the skull does not require a battery and can be used for a lifetime.
Team leader Hong told the Global Times in an exclusive interview that compared with Neuralink's technology, the NEO technology has the advantages of higher safety and long-term use.
Currently, BCI technology is classified into three categories: Non-invasive, invasive, and semi-invasive, based on whether it requires the invasion of the brain and the degree of invasion, according to Hong.
Hong explained that invasive BCI usually involves the implantation of a large number of neural electrodes in the cerebral cortex, which causes significant trauma and makes it difficult to solve the problem of immune-inflammatory reactions. After a certain period of implantation, the electrodes will be covered by glial cells, resulting in a gradual decrease in signal quality.
Conversely, wireless minimally invasive implanted BCI technology is usually implanted on the human dura mater, without invading the neural cells of the cerebral cortex. It uses a combination of software and hardware to enhance signal quality, effectively solving the problem of biocompatibility and achieving a balance between high signal intensity and minimal implantation damage.
The Global Times learned from the team that the clinical trial of this wireless minimally invasive BCI was approved by the Xuanwu Hospital in April 2023. It has also been registered for both international and domestic clinical trials of implanted medical devices.
The second clinical surgery for a patient with spinal cord injury was successfully performed by Professor Jia Wang's team at the Tiantan Hospital on December 19, 2023. The patient is currently undergoing home-based rehabilitation training.
Asked when the NEO technology could be available on the market, Hong told the Global Times that currently, the technology is undergoing large-scale clinical trials in accordance with the relevant regulations. It can be put into actual application after obtaining an implanted medical devices license.
"It is expected to take at least two years," he said.
This year marks the 45th anniversary of the establishment of diplomatic relations between China and the US. Manuel C. Menendez, founder and CEO of MCM Group Holdings, was one of the earliest American businessmen to come to China. He facilitated the establishment of the first China-America joint venture.
Over the last 45 years, Menendez has experienced the ups and downs of China-US relations and the expanding economic and trade cooperation between the two countries. Currently, the development of China-US relations is at a critical juncture. Regarding the future direction of China-US relations and how the two countries can strengthen cooperation, Global Times reporters Xie Wenting and Zhao Juecheng (GT) recently interviewed Menendez to gain his perspective on these and more pertinent questions.
GT: On November 15, 2023, Chinese President Xi Jinping and US President Joe Biden held a meeting at the Filoli Estate in San Francisco, US. How do you view the significance of the meeting and its impact?
Menendez: Without engagement and contact, misunderstandings can arise, leading to misjudgments and trouble for everyone involved. That is why the only way to avoid this is to continue the momentum we have now, especially with President Biden and President Xi meeting together. I am extremely excited and pleased that the two presidents were able to meet. I believe we are now on a better platform for stability. Stability is important.
We had a number of very senior officials who came to China in 2023, including Secretary of State Antony Blinken, Treasury Secretary Janet Yellen, Commerce Secretary Gina Raimondo, and Senator Chuck Schumer who led a delegation of both Republican and Democratic senators. I think the buildup of the number of high-level meetings is critical at this important stage of US-China relations. It sounds simple, but the most important thing is continued talking, continued engagement, and finding common ground. That is because, in reality, on most things, there is a lot of common ground on which we share common views, whether it's climate change, health issues, or coordinating efforts for natural disasters. I believe these actions are very important for the two largest economies in the world.
But the engagement on what are red-line issues or sensitive issues takes time to roll up your sleeves and have a clear understanding. This applies not only to China and the US but to any country that has sensitive issues that need to be discussed. The most important thing about discussing these more sensitive or national security issues is to spend the time to talk about them on a granular level so that there are no misunderstandings.
In terms of business, the business community always appreciates predictability and stability. I am glad that we are currently on this trajectory.
GT: What are your expectations for China-US relations in 2024?
Menendez: We have to keep it stable, so my hope and wish for the New Year is increased contact and stability.
Will there be significant improvements? I think it will be challenging in 2024. As we enter the presidential season in the US, China will inevitably be part of the discussion. However, it is important to remember that political rhetoric does not always reflect reality.
The reality can be different from what is portrayed in the media and political rhetoric. The reality is that the two countries have done an unbelievably wonderful job over the last 45 years. There have been many companies from the US, in particular, those have entered the Chinese market and have done very well. And Chinese companies that have gone to the US have done a marvelous job there. So, there are a lot of actual benefits that have been witnessed when the number one and the number two economies of the world work together, because it not only helps the US and China, but also helped the world by uplifting the global economy when we work together.
So, I think that there are so many success stories versus the negatives of the not successful stories. There are more successes than failures in these countries, especially because of the US-China trade.
China still remains the main anchor because there is one very important characteristic about China that should never be misunderstood: China is not only a world factory, but also a world market. This is due to the emergence of the middle class in China during my lifetime, which is driving consumption. Therefore, the growth of consumption in China is also what drives the US. The US is a consumer-driven country with a strong middle class, and the same phenomenon has occurred in China.
My expectation in the bilateral relations is for better stability and predictability. After 2024, I am very optimistic that the world economy will adjust, as conflicts in certain regions, which I am praying, will be resolved, come to an end. This will allow us a return to a more normalized situation and enhanced relations in 2025. GT: What efforts can be made to avoid "gray rhino" events in China-US relations in the coming year?
Menendez: I believe that moving forward, it is crucial for us to gain a better understanding of the world we live in today. The world is a little bit different from how it was 40 years ago, with lots of geopolitical dynamics shifting.
If you look at the global economy, the combined GDP of China and the US alone accounts for approximately 45 percent of the world's GDP, which is amazing for just two countries. Therefore, we must not only focus on the development of our own nations but also recognize our greater role and responsibility in ensuring that we address global issues correctly.
We have to find a way that makes both countries comfortable, ensures their voices and concerns are heard, establish a structured approach moving forward, and allows for shared participation on the global platform. Sharing platforms together is a complex issue because it not only requires the consideration of practical, business aspects, but also geopolitical aspects. However, misunderstandings sometimes arise when it comes to geopolitics.
The only way I know of solving those things is through the continual frequency of discussions, not only at the highest level but also at the operational level of governments.
GT: In your opinion, what is the biggest misunderstanding that some Americans have about China?
Menendez: I think one of the common misunderstandings about China is that China is sometimes portrayed as an aggressive country. I've never felt nor seen that.
When I think of China being aggressive, I don't mean it from any other perspective other than being very aggressive in business. However, all countries are very aggressive in business. We all compete with each other, and with our companies and brands, to gain market share wherever it may be, whether it's a German, French, Italian, or American company. We are always competing aggressively.
But when it comes to aggressively expanding outside of China, I think there is a misconception that China will aggressively go after other regions of the world. I don't think that is the case. In my personal experience, China has adhered more to Confucian thinking of a benevolent society and not seeking to expand its footprint outside of China. If you look at Chinese history over the last 5,000 years, it is not even a part of it.
Besides, China is known for being extremely friendly, particularly toward foreigners who come to visit. This aligns with the Confucian thinking that says when people come from afar, you should welcome them and be happy. China has consistently upheld this philosophy of welcoming foreigners, and I think that's still the case.
My motto is world trade creates world peace. World peace and world trade go hand in hand because when people work together, they are less likely to engage in conflict. I wish I could take everyone from the US to China so that they could see China. And I wish I could take everyone from China to the US because, at the people-to-people level, the people of both countries are very nice and good people.
The one higher purpose of the relationship we should never undervalue is a strong China and a strong US working together. This collaboration not only creates prosperity in both countries but also fosters prosperity in the world and promotes world peace.
GT: There is a growing voice in the US, calling for the so-called de-coupling or de-risking from China, especially in the high-tech arena. What's your take on it?
Menendez: I think that everything in high tech is not a matter of national security. You have to know where the line is. This is what I mean by engagement and talk. Every chip that is manufactured is not a high security or high national security chip as we use chips in various everyday appliances such as washing machines and cars. Almost every modern appliance, including basic ones, incorporates chips. Hence, as I mentioned before, engaging in dialogue and ensuring a clear understanding of the boundaries between our countries is extremely important.
We need to understand each other's sensitivities and have open discussions while maintaining mutual respect. We may not always agree on everything, but we should at least try to understand the reasons behind our disagreements. This way, we can find solutions to have a path forward.
Due to the COVID-19 pandemic, some companies have identified certain flaws in their product delivery to customers. As a result, companies, particularly in the US, have a responsibility to ensure efficient product delivery. Therefore, they have relocated parts of their supply chain. But I am yet to hear of any big-scale companies that have left the Chinese market. They continue to operate in China. They have partly moved some production, maybe to Vietnam or other parts of the world, and maybe a little bit to India, to enhance the resilience of the supply chain.
But China still remains the main anchor because there is one very important characteristic about China that should never be misunderstood: China is not only a world factory but also a world market. This is due to the emergence of the middle class in China during my lifetime, which is driving consumption.
GT: The Chinese government recently announced a raft of measures to attract foreign investment. What are your opinions on these measures? What is your advice for China in terms of attracting foreign investment?
Menendez: China has simplified the process of doing business. I have witnessed numerous improvements over the years. However, one aspect that China needs to address is effectively promoting and informing the world about its policies, so that other countries can understand the benefits.
Success is the key to promoting more foreign direct investment (FDI), as people are more likely to be motivated when they hear about the positive outcomes resulting from specific policies. Real-life examples are the key to further strengthening FDI and making it even more robust than it currently is.
I think that there are areas that can be improved to make the business climate more conducive for investment. However, this is a process that takes time. Changes need to be made based on the current world and market conditions. I consider it an evolutionary process.
In the early days, any form of development was acceptable as China aimed to attract foreign investment and build its own economy and infrastructure. The infrastructure development and the largest migration in human history in China have been a miracle.
One of the great things that China has done, which is positive, is taking people out of absolute poverty. It has been amazing to witness nearly 800 million people coming out of absolute poverty, which is a great achievement. However, that is not the end goal. I always emphasize that getting out of absolute poverty is just the first step. The goal now is to improve people's lives and achieve common prosperity. I think China is working hard toward that.
As China has risen up to this level, you have to give credit to the Chinese entrepreneurs, the Chinese ability to take a policy, and the ability to make it work step by step.
GT: You played a positive role in China's return to the global market in the late 1970s. You have also witnessed significant changes in the Chinese business market over past decades. In your opinion, what are the current advantages that China has to offer to foreign companies and investors?
Menendez: I think the most obvious change is what I mentioned earlier: China has transitioned from being just a world factory to becoming a world market. It now has a significant consumer population. Therefore, companies that have products and services can also sell them in China. This can be referred to as hitting a home run. The concept of a home run implies that if you can manufacture a product in China, you have a competitive advantage in the global market. This advantage stems from the fact that the best product, offering the best price and quality, ultimately emerges as the winner, not only in China but also worldwide.
Now, wherever it is, China has consistently produced the best products with the highest quality and at the most competitive prices, making them the ultimate winner in many categories. Take Apple, for example, with their iPhones and MacBooks manufactured in Dongguan by Foxconn. These products are then distributed worldwide, contributing to Apple's status as the number one company in terms of market capitalization. China has undoubtedly played a significant role in this achievement.
I think companies should consider the Chinese market as an opportunity to manufacture goods here. This does not necessarily mean shutting down high-level or advanced production in the US, but rather having some production in China to capitalize on the growing Chinese market.
I believe there is plenty more room to grow in China. There are still hundreds of millions of people who have yet to move from their current position to the middle class. So, I think there is ample opportunity, what we call runway, in China. However, it is important to have knowledge about the market; where to enter and who to partner with. I like the philosophy of working in China with partners. I like Chinese partners, as they know their market and economy. It is always good to share in the economic equation. When both the China and US work together, both sides win and can achieve mutual success. If we are economically tied together, I believe it is a very powerful formula moving forward.
China witnessed the establishment of more than 48,000 new foreign enterprises from January to November 2023, which serves as one of the parameters indicating confidence in the Chinese market.
In the context of the 2024 and 2025 Chinese-Russian Years of Culture, a marvelous opera concert was staged on Wednesday at the Russian Culture Center in Beijing.
Tatiana Urzhumtseva, director of the Russian Culture Center in Beijing and, Yuri Alexandrov, director and founder of the St. Petersburg Opera Theatre attended the performance and delivered speeches.
Alexandrov noted that the two countries have cemented close relations and Russia shares unbreakable brotherly ties with China. Meanwhile, Urzhumtseva underscored the Beijing Opera's long history that has become a beautiful representation of Chinese culture.
"We have appeared for the first staged opera in Beijing," Russian stars from St. Petersburg Opera Theatre and "Zazerkalie" Theatre told the Global Times on Wednesday.
They expressed their willingness to warmly welcome Chinese art experts to Russia and also noted that China has a long history of culture, especially witnessed in its diverse opera traditions such as the Beijing opera and Sichuan opera.
"I'm looking forward to seeing more cultural collaborations with China and hope that the Chinese chorus will come to Russia," one Russian star from St. Petersburg Opera Theatre told the Global Times.
Alexandrov agrees, saying: "I love Chinese culture and I promise that the exchanges between the two countries will deepen further," he said.
Alexandrov first came to China about 35 years ago, and remarked on the massive change that Beijing has undergone since then during his most recent visit, especially in terms of economy and culture.
"The technology in China is very advanced, even in the small cities, and it allows actors to perform in an authentically artistic atmosphere," Alexandrov told the Global Times.
As the Russian opera director, Alexandrov, won The Golden Mask (Russia's highest theater award) in the the categories of "Best Opera Production," "Best Opera Director," "Best Opera Designer," and "Best Opera Conductor," for his 1999 production of Prokofiev's Semyon Kotko. There were 13 songs from well-known operas such as the Queen of Spades performed during the concert, which captivated numerous Chinese and Russian audience members and received thunderous applause.
China-Russia relations have been deepened and developed in recent years, and the achievements of cultural exchange between the two countries are obvious to all.
In November, the Mariinsky Theater's Opera, Ballet, Chorus, and Symphony Orchestra toured six cities: Beijing, Shanghai, Nanjing, Harbin, Taiyuan, and Zhuhai.
In September, the opening ceremony of 2023 China Film Festival successfully kicked off in Moscow, Russia, attracting hundreds of moviegoers to watch the opening drama film Home Coming, starring Zhang Yi. It was another significant event under China-Russia collaboration, after the Russian Film Festival which took place in three cities across China, in Beijing, Heihe in Northeast China's Heilongjiang Province, and Suzhou in East China's Jiangsu Province, running from August 27 to September 3. This was the first time the Russian Film Festival project split screenings across three cities in China.
China is opening its door wider and wider to welcome foreign visitors, as the country extended its visa-free policy to six more countries, including Switzerland and Ireland, starting on Thursday. The move is aimed at boosting inbound tourism and people-to-people exchanges.
The latest move comes as China has already waived visa requirements for citizens from more countries, including those in Southeast Asia, and has also moved to address other issues for foreign visitors, including payment hurdles, underscoring the country's commitment to opening-up, experts said.
Coming at a time when many major countries such as the US are tightening visa policies for Chinese citizens, China's series of opening-up moves highlight the country's confidence and openness that is conducive for an open world economy, in stark contrast to a rising isolationist and protectionist tide in some countries, experts also noted.
In the latest development, from Thursday to November 30, 2024, citizens from six European countries - Switzerland, Ireland, Hungary, Austria, Belgium and Luxembourg - are able to visit China for business, sight-seeing, transit and other purposes for up to 15 days without having to apply for a visa.
The visa-free policies for the six countries were already announced previously, and airlines, travel agencies and visitors have already been preparing for its implementation, with an increased number of flights between China and those countries and surging inquiries and bookings.
On Thursday, the first direct flight between South China's Guangdong and the six European countries after the visa-free policy officially took effect arrived in Shenzhen. The fight originated from Brussels, Belgium, and was operated by Hainan Airlines, which carried more than 20 Belgian nationals.
Anticipating a growing number of passengers, Hainan Airlines told the Global Times on Thursday that it currently operates two direct flights to Brussels, with the one between Beijing and Brussels running daily and the one between Shenzhen and Brussels flying three times a week.
Meanwhile, searches for flights from Europe to China have also surged. As of Thursday afternoon, searches for flights from Zurich to China have increased by 60 percent compared with last week, Chinese online travel platform Qunar.com told the Global Times on Thursday.
Overall, after the visa-free policies took effect on Thursday, some routes between China and those of European countries have shown a growth trend and the number of flights between China and Europe is increasing slightly, according to aviation information provider VariFlight.
"This may indicate that the visa-free policy will promote tourism and business exchanges between the two sides and further strengthen ties between China and Europe," VariFlight told the Global Times on Thursday.
In December 2023, China also waived visa requirements for citizens from six countries, including five European nations such as France and Germany.
China has also recently signed agreements with Singapore, Malaysia and Thailand on mutual visa exemption. Such moves have already boosted the number of inbound travelers, which reached 3.23 million during the Chinese Lunar New Year holidays, and the number of visitors from those visa-free countries doubled that of 2019, according to China's Foreign Ministry.
In addition to visa exemptions, China has also rolled out a slew of other measures to make it more convenient for foreign nationals to visit, including streamlining visa applications and improving payment services. Due to issues surrounding the acceptance of foreign bank cards and identity authentication procedures, many foreign visitors have faced difficulties when using China's mobile payment services, which is the most commonly used payment mothed in China. Hence, Chinese authorities have taken various steps to address these issues.
Last week, the State Council, China's cabinet, issued a notice asking banks and payment and clearing entities to strengthen cooperation to continuously improve and expand mobile payment services for foreign visitors. On Thursday, the People's Bank of China, the central bank, issued a guide to payment services in China, saying foreign visitors now have a number of payment options, including mobile payments.
Openness, confidence
The measures aimed at boosting inbound travel and people-to-people exchanges are just part of China's continuous, comprehensive opening-up drive, which reflects the country's openness and confidence, even when many countries are turning inward, experts said.
"These visa-free policies are actually a manifestation of China's attitude that we are encouraging people-to-people exchange, supporting economic globalization and against trade protectionism," Bian Yongzu, a senior researcher with the Chongyang Institute for Financial Studies at the Renmin University of China, told the Global Times on Thursday.
As some countries are trying disrupt economic and people-to-people exchanges between nations with the pretext of national security, causing great uncertainty for the global economy, "we are coping with this period of uncertainty with this mindset of greater openness and confidence," Bian said.
The US, in particular, has been seeing a surge of xenophobia and protectionism and has actually taken a litany of measures that disrupt global economic cooperation. Worse yet, Washington has been seeking a decoupling between China and the US by cracking down on Chinese firms, restricting normal trade and commercial activities, and even imposing strict visa requirements and treating Chinese students unfairly at the ports of entry.
"Indeed, there are some protectionist tendencies in Europe and the US," Bian said, noting that some of these countries are facing profound internal difficulties that they have no viable solutions to address, so they have resorted to cracking down on developing countries. "Trade protectionism is just a political expedient that is unsustainable."
In contrast, China, even as it faces an increasingly complex external environment, has been opening up its economy and advocating for an open world economy. The Government Work Report, adopted at the recently concluded two sessions, said that China will further deepen reform and opening-up across the board. As an example, all market access restrictions on foreign investment in manufacturing will be abolished, and market access restrictions in services sectors, such as telecommunications and healthcare, will be reduced, according to the report.
China's continued opening-up, particularly institutional opening-up, will not only make it more convenient for foreign businesses and investments to enter China, but will also boost their confidence and sense of certainty about China's economic development, experts said.
"Moreover, it will also help foreign governments form a deeper understanding of China's economic development and become more willing to cooperate with China, which in turn helps share China's external environment," Bian said.
The business performances of foreign-invested companies in China are particularly impressive. Those that have been operating in China are making expansion plans, while more and more foreign companies are coming to invest and settle in the Chinese market to seize growth opportunities.
Analysts on Tuesday attributed the attractiveness to China's huge market, continued opening-up policy and improved business environment.
US-based multinational pharmaceutical company MSD reported operating revenue of $6.71 billion in China in 2023, up 32 percent year-on-year, accounting for 12.5 percent of its global revenue.
German automotive supplier Bosch reported sales growth of 5.2 percent in China in 2023, totaling 139.1 billion yuan ($19.4 billion).
Apple's revenue from China accounts for about one-fifth of its total revenue.
The financial results of HSBC Holdings showed that the company made more than $1 billion in profit from the Chinese mainland in 2023.
"We remain confident in the resilience of the Chinese economy, and the growth opportunities in the Chinese mainland over the medium to long term," Noel Quinn, CEO of HSBC Holdings, said in a statement along with the release of the 2023 results.
In 2023, China was Finnish elevator maker KONE's largest single market globally. Sales from the China market accounted for 26 percent of its global sales, according to its results.
Such business performances show why foreign-funded companies are increasing their presence in the Chinese market.
As one of the latest examples, Apple announced on Tuesday that it will open a new research and development (R&D) center in Shenzhen, South China's Guangdong Province and upgrade its Shanghai R&D center to support product manufacturing.
Apple will also add a new store in downtown Shanghai on March 21, which will reportedly be the highest-standard Apple store in the Chinese mainland. It will be its 57th store in Shanghai.
Bosch on Monday won approval to start construction of the second phase of a production base for new-energy vehicle components and a self-driving R&D center in Suzhou, East China's Jiangsu Province, the Suzhou Industrial Park announced on its WeChat account on Tuesday.
Total investment for Bosch's Suzhou production and R&D base will exceed $1 billion. Phase one of the project is expected to begin trial production in September, and formal mass production will be achieved in early 2025.
Newcomers have also emerged. For example, on Monday, US fashion brand Supreme announced a plan to open its first store in China, which will be its 17th store worldwide, media reported.
The number of newly established foreign-invested enterprises in China amounted to 4,588 in January, an increase of 74.4 percent year-on-year, data from the Ministry of Commerce showed.
In 2023, 53,766 foreign-funded enterprises were newly established in China, up 39.7 percent over the previous year, according to the National Bureau of Statistics.
Analysts said that China's economy has returned to the normal track of growth, and foreign investment will stick to the country's huge market.
China's leading position in global economic growth will provide plenty of investment opportunities, Yang Delong, chief economist at the Shenzhen-based First Seafront Fund Management Co, told the Global Times on Tuesday. "China's overall industrial advantages and unchanging position in global supply chains remain attractive to foreign investors," Tian Yun, a veteran economist based in Beijing, told the Global Times on Tuesday.
For example, KONE said in its 2023 financial results that the majority of components used in the company's supply chain are sourced from external suppliers, a significant number of which are located in China.
Apart from having a huge market, growth potential and industrial advantages, analysts also noted that China has been continuously opening up its markets to foreign investment.
The business environment in the Chinese market has been continuously improved, and the market's vitality has been continuously stimulated, the analysts said.
The 2024 Government Work Report, delivered at the opening meeting of the second session of the 14th National People Congress, outlined the country's efforts to attract foreign investment. For example, all market access restrictions on foreign investment in manufacturing will be abolished, and market access restrictions in services, including telecommunications and healthcare, will be reduced.
Tian expected that China's attractiveness to overseas capital will be higher in 2024 than in the previous year.
"We believe that China will remain on a positive trajectory in the long run, and its market will continue to attract multinational corporations as well as foster new start-ups," Denis Depoux, global managing director of Roland Berger, told the Global Times in a recent interview.
China should make full-fledged breakthroughs in the Western-strangled chip manufacturing industry, with a focus on basic materials for chip-making such as photoresists and high-purity hydrogen fluoride for which China currently relies on imports, Xie Suyuan, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and an Academician of Chinese Academy of Sciences, told the Global Times on the sidelines of a group discussion during the two sessions on Thursday.
Amid a relentless US-led crackdown against China's chip industry, the country has been mulling over an all-out effort to achieve tech self-sufficiency across key industrial chain. One, among which, is the research and development (R&D) involving advanced chipmaking technology extreme ultraviolet lithography (EUV).
"Chip production is a huge project, and the bottleneck we face largely lies in inadequate material technology," Xie said. He pointed out that although China is well recognized for its basic research level in certain materials, it still lacks adequate R&D in leading and high-end materials, being "strangled" in such fields as electronic information materials, aerospace materials, and luminescent materials.
According to Xie, improving self-sufficiency in these sectors needs inputs across the supply chain. He thus suggested that China's Ministry of Industry and Information Technology (MIIT) should properly guide relevant research institutes, companies and financial institutions to jointly set up an institute on "intermediate experiment," which he said can be pivotal in facilitating the industrialization of "groundbreaking, cutting-edged" research achievements in basic materials.
In January, China's MIIT, along with the National Development and Reform Commission, the country's top economic planner, issued guidelines promoting the innovative development of intermediate experiment in the manufacturing industry.
The "intermediate experiment" refers to a transitional test involving transferring new products in the trial phase to production process. Such test, which links up the basic research with industrial application, is particularly crucial in research result transformation of chemical, new materials and pharmaceutical industries, according to Xie.
"Without an intermediate experiment, the chance of successful industrialization is only 30 percent, while the rate could reach 80 percent after undergoing the test," he explained. He added that China's whole-nation system advantage is also helpful in speeding up the industrialization of research result.
In addition to chipmaking, a number of group discussions held on Wednesday and Thursday during the two sessions also put extensive focus on building self-sufficiency in emerging sectors such as artificial intelligence (AI) ecosystem, ranging from AI chips, domestically built large models to further industrial applications.
Guo Yufeng, a member of the CPPCC National Committee and vice general manager of Chinese chipmaker Feiteng Information Technology, said during a panel discussion on Thursday that it remains a key issue as to how China will leverage its sheer market size to fast track the innovation path. "Large-scale industrial application and application scenarios are the key in creating new quality productive forces. They are also pivotal in speeding up the technology's rapid iteration."
China's Government Work Report released on Tuesday highlighted 10 major tasks this year, and "striving to modernize the industrial system and developing new quality productive forces at a faster pace" was listed at as a key priority.
According to Xie, a foundation for China to develop "new quality productive forces" is shoring up the inputs on basic research and intermediate experiment. "This is the best way to cope with US-led decoupling and de-risking push," Xie added.
China's ultra-deep oil well broke through the 10,000-meter depth mark on Monday, after 279 days of drilling. This is China's first well to exceed a vertical depth of more than 10,000 meters. It has the record for the deepest well in Asia and also the world record for the shortest time taken to drill a 10,000-meter deep well.
It shows that China has independently overcome the bottleneck in extra-deep well drilling technology, and that its deep-earth oil and gas drilling capability and supporting technology have reached the international advanced level.
With a designed depth of 11,100 meters, the Shendi Take 1 ultra-deep well, located in the Tarim Basin in Northwest China's Xinjiang Uygur Autonomous Region, is part of China's efforts to expand domestic oil production.
The well will also be used to carry out deep-earth science exploration to examine the internal structure and evolution of the Earth, as well as oil and gas accumulation in the 10,000-meter-deep layer, China National Petroleum Corp (CNPC), the operator of the well, said in a post on its WeChat account.
The drilling started on May 30, 2023 and will continue to the designed depth of 11,100 meters, said CNPC.
The difficulty increases exponentially as the depth increases, project personnel said. The Shendi Take 1 ultra-deep well crosses 13 earth layers in the basin from top to bottom. Currently, the 12th layer has been drilled, and drill bits are drilling into rocks dating back 500 million years.
In order to hit the 10,000-meter-deep mark, China independently developed the world's first automatic drilling rig that can reach 12,000 meters. It involves technology such as 220 C ultra-high temperature drilling fluid and high temperature-resistant screws.
At the same time, various kinds of core equipment and technologies were used, with 21 breakthroughs in seven categories, and the localization rate of materials and equipment used reached 90 percent.
According to the project staff, 26 drill bits and 1,060 drill stems have been used to drill the well.In the oil drilling industry, wells that are between 4,500 and 6,000 meters deep are called deep wells. Wells that are between 6,000 and 9,000 meters deep are called super-deep wells, and those that are deeper than 9,000 meters are classified as ultra-deep wells.
At present, China's onshore deep and ultra-deep oil and gas resources account for 34 precent of the country's total oil and gas resources, and the proportion of new deep and ultra-deep oil and gas reserves is increasing year by year.
The Tarim Basin is China's largest petroliferous basin, accounting for more than 60 percent of the country's onshore ultra-deep oil and gas resources.
However, the Tarim Basin is also one of the most difficult areas to explore in China, in part because many of its reserves lie between 6,000 and 10,000 meters underground.
Therefore, technological innovations that allow for ultra-deep wells have become crucial.
In recent years, China has conducted ultra-deep well projects in the Tarim Basin and has successfully drilled more than 140 wells with a depth of more than 8,000 meters.
In 2023, CNPC's oilfields in Tarim Basin produced 19.57 million tons of ultra-deep oil and gas, ranking first in China and making the basin the largest ultra-deep oil and gas production base in the country.
China's top political advisory body started its annual session on Monday in Beijing, ushering in an important political season that will highlight new missions to steadily boost high-quality development in a bid to build the country into a great modern socialist country while injecting new impetus into global growth.
This year marks the 75th anniversary of the founding of the People's Republic of China and is a key year for achieving the goals outlined in the nation's 14th Five-Year Plan (2021-25). In this pivotal year of comprehensively deepening reform, analysts and deputies and members to the two sessions expect major measures to be announced at the key political event to further promote high-quality development and advance Chinese modernization.
Observers projected that China's high-quality development in 2024 and medium to long term will be driven by new quality productive forces such as artificial intelligence (AI), digital economy and other innovation industries. With continuous improvement in economic structure, strong economic development momentum and sound development trend, the Chinese economy will remain a promising destination for foreign investment and a major engine driving global growth.
New productive forces At the 11th group study session of the Political Bureau of the Communist Party of China (CPC) Central Committee held on January 31, 2024, Xi Jinping, general secretary of the CPC Central Committee, said that developing new quality productive forces is an endogenous requirement and a pivot for high-quality development.
Sci-tech innovation has become an important driving force for China's development. Recently, the term "new productive force" has become a key word for central and local governments in their arrangement of economic work, and is also an area that national legislators and political advisors are expected to provide suggestions for during the ongoing two sessions.
"New quality productive forces represent advanced productivity and is an important direction of China's development. The vigorous development of new quality productive forces will eventually help achieve high-quality development in China," Yu Miaojie, president of Liaoning University and a deputy to the 14th National People's Congress (NPC), told the Global Times on Monday.
In order to boost the development of new productive forces, China should further increase investment in original innovations and basic research, Yu said. In 2022, the country's investment in basic research accounted for 6.57 percent of the total research and development (R&D) spending, and the share should further climb to 7 percent or even 10 percent by the end of 14th Five-Year Plan period (in 2025), he said.
The development of new quality productive forces is currently picking up speed in China. Along with advances in the new technological revolution and industrial transformation, data, computing power and AI have become new drivers of new productive forces.
Yang Jie, chairman of China Mobile and a member of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC), suggested that the country boost the "AI+" campaign at the national level by strengthening top-level design and clarifying development goals and key tasks, in order to give full play to the huge potential of AI in achieving leapfrog development of technologies, industrial upgrade and productivity.
Comprised of AI and the manufacturing sector, smart manufacturing is an important part of new productive forces. However, China's smart manufacturing faces three major problems: Supply capability needs to be strengthened, application needs to be promoted and a standard system needs to be established, said Zhong Zheng, an NPC deputy and vice president of the Midea Group.
She suggested that the country support leading companies in various industries to take the lead in developing industry solutions so as to help more companies set up world-leading smart factories that contribute to sustained development.
While new quality productive forces are important to the world's second-largest economy, private enterprises also need to earnestly enhance their own productivity and boost transformation surrounding sci-tech innovations, Wang Junjin, a member of the 14th National Committee of the CPPCC and chairman of Shanghai Junyao (Group) Co, told the Global Times on Monday.
Wang said that efforts should also be made to inject momentum into the country's burgeoning consumption sector, for example by building new business models and new spending scenarios in order to drive the high-quality development of China's economy.
Vibrant economy China's economy grew by 5.2 percent year-on-year in 2023, contributing to more than 30 percent of the world's economic growth. More importantly, steady progress was made in pursuing high-quality development last year, with consumption playing a larger part in driving growth, tech innovations making breakthroughs and new momentum accumulating.
The Chinese economy kicked off 2024 with a robust display of economic resilience and vitality. For example, China saw 474 million domestic tourist trips during the eight-day Spring Festival holidays that ended on February 17, up 34.3 percent year-on-year. China's box office revenue during the same holiday season reached 8 billion yuan ($1.1 billion), setting a new record for the period.
"Overall, China's development is seeing more favorable conditions than unfavorable ones, and the overall trend of China's economic recovery and long-term improvement remains unchanged. We have plenty of confidence in that," Lou Qinjian, spokesperson for the second session of the 14th NPC, said at a press conference on Monday, one day ahead of the opening of its annual session.
It is widely expected that policymakers will set a GDP target of around 5 percent for 2024 in the Government Work Report to be delivered by Chinese Premier Li Qiang on Tuesday, which will greatly boost market confidence and gather strength for the high-quality development of the economy.
The two sessions are a timely and clear response to certain pessimistic voices on the Chinese economy, mainly from Western countries, Han Baojiang, a member of the 14th National Committee of the CPPCC, told the Global Times.
"Chinese policymakers are sober and their approach to economic development - as shown by the Central Economic Work Conference and the Government Work Report set to be delivered on Tuesday - is very clear," Han said. "To put it simply, improving our economy, enhancing people's livelihoods, and ensuring stable employment may be the most effective way to deal with all those challenges."
Foreign chambers of commerce and companies operating in China have also shown confidence in the prospects of the Chinese economy, eyeing greater opportunities from Chinese modernization.
"China remains an important market for our member companies," Juha Tuominen, chairman of FinnCham Beijing, told the Global Times, saying that the chamber's latest surveys showed that Finnish companies are positive about Chinese market potential.
Although the Chinese economy faces challenges such as weak consumption, a property market downturn and weak export momentum, the Chinese government has drawn up the appropriate policies. It's hoped that there will be an improvement after this year's two sessions, and Panasonic will strengthen local operations to deal with market changes, Tetsuro Homma, executive vice president of Panasonic Corporation, told the Global Times.
"China is the most important technology and supply chain base for Panasonic… We will closely follow topics such as healthcare, smart manufacturing and green development during the two sessions and are seeking opportunities in other key areas as well," Homma said.
Editor's Note: While China's economy is undergoing a crucial transformation and upgrade amid the current complex international environment, Western propaganda machines persist in attempting to undermine China's economic progress by creating biased and inaccurate narratives. To counter these false claims, the Global Times is publishing a series of articles that unveil the reality of China's consistent economic development.
Since the start of reform and opening-up, there have been several waves of talking down the prospects of the Chinese economy in the international public opinion arena. Looking back, it is evident that those arguments were all incorrect.
When China's economic development encountered challenges during the late 1980s and early 1990s, the international community was abuzz with discussions regarding the potential "collapse of the Chinese economy." However, with China setting the objective of reforming the socialist market economy system, the economy has sustained rapid growth. From 1991 to 1995, the GDP experienced an average annual growth rate of 12.3 percent.
During the period of 1997 to 2001, as China's economic landscape underwent transformations, a resurgence of the theory of "China's economic collapse" was put forth by some foreign economists. However, the reality is that, through deepening reforms, expanding openness, and macroeconomic policy adjustments, China not only withstood the impact of financial crises, preventing a decline in economic growth, but also entered a period of rapid economic growth after 2000. From 2001 to 2005, China's average annual GDP growth rate was 9.8 percent.
Since 2007, China's economy has been under pressure due to the effects of the international financial crisis. Some foreign scholars have expressed concern about a potential decline in the Chinese economy. For instance, Nobel laureate in economics Paul Krugman wrote an article in The New York Times entitled "Will China break?" In fact, the Chinese government effectively mitigated the impact of the international financial crisis by implementing proactive fiscal policies and moderately easy monetary policies, enabling the economy to maintain stable and rapid growth. In 2010, China's GDP exceeded 40 trillion yuan ($5.6 trillion), solidifying its position as the world's second-largest economy and the largest manufacturing nation.
After 2010, with changes in economic development conditions such as the cost increase of China's labor force, coupled with the lingering impacts of the international financial crisis and the subsequent European sovereign debt crisis, China's economic development entered a new normal. There were once again voices predicting a downturn in the Chinese economy, suggesting that it would face stagnation or even an economic crisis. The fact is that China has promptly implemented measures such as supply-side structural reform, which has helped stabilize and boost the economy, leading to high-quality economic development.
Western cognitive biases Those who consistently predict the decline of the Chinese economy repeatedly make mistakes because they have cognitive biases and misconceptions about the strong resilience and development principles of the Chinese economy.
First, Western doomsayers simply use Western economic theories to analyze and judge the development prospects of the Chinese economy. Western economic theories, which are developed through analyzing the development experiences of developed Western countries, should not be simply replicated in developing countries, especially in large economies like China that are undergoing economic transformation.
Historical experience has consistently demonstrated that developing nations, when blindly adopting Western economic theories without taking into account their unique national circumstances, have failed to achieve economic development success. Instead, they have often encountered economic stagnation and political unrest.
China has steadfastly followed the path of socialism with Chinese characteristics, implementing reforms toward a socialist market economy and driving Chinese modernization. These efforts have led to notable achievements that have garnered global recognition, showcasing a promising outlook for the great rejuvenation of the Chinese nation.
Second, Western critics have tended to exaggerate short-term and localized challenges, overlooking the resilience of China's economic growth. It is essential to consider both short-term and long-term perspectives when evaluating the economic landscape, rather than fixating on isolated issues. Excessively amplifying short-term or local problems and risks within the Chinese economy is not warranted.
Upon reflection, it is evident that many of the challenges perceived to have a substantial impact on the Chinese economy in the past were not as severe as initially anticipated. This can be attributed to China's status as a major economy, as well as the distinctive advantages of the socialism with Chinese characteristics in effectively addressing the risks and challenges.
Moreover, China's economic development continues to show an upward trajectory, indicating its resilience and capacity to weather shocks with self-stabilizing and self-repairing mechanisms. Although short-term adjustments may be necessary in response to challenges, China has demonstrated its ability to explore new pathways for development.
Third, the negative portrayals of China's economy from the Western media lack clear evidence. Instead, they are rife with biased, ill-intentioned and narrow-minded misinterpretations. Analyzing and studying China's economy necessitates the integration of economic principles with China's specific national circumstances and stage of development. However, some pessimists lack a comprehensive and in-depth research on the Chinese economy, with certain scholars seldom visiting China. There are individuals who even engage in negative commentary to attract attention, and some exploit China slander for financial gain in the capital market.
Positive trajectory unchanged At present, China's economy is entering in a crucial phase of transition toward high-quality development. Throughout this process, it is bound to face a range of issues and challenges. Nevertheless, China's economic progress remains steadfast. It is bolstered by confidence, advantages, and opportunities, ensuring that its enduring positive trajectory remains unchanged.
First, the foundation of China's economic development remains stable, with new growth drivers emerging and expanding. The country has amassed significant material and technological resources, and its vast domestic market demand serves as a robust pillar for sustaining steady economic growth and navigating through various risks and challenges. In terms of scientific and technological innovation, despite certain countries intensifying efforts to restrict China's high-tech industries and advocate for "decoupling and disrupting industrial chains," it is impossible for them to impede the progress of China's scientific and technological advancements and industrial upgrades.
Second, China has outstanding comprehensive advantages in human resources, capital, infrastructure and industrial systems, and has huge economic development potential. Although major changes in the total population size and structure will have a certain impact on economic growth, it should be noted that compared with population size, the key factor affecting medium- and long-term economic growth is educating level of labor force. In 2023, China's working-age population aged 16-59 stayed at 865 million, of which more than 240 million received higher education.
From an investment perspective, China's savings rate still remains at a high level, with great investment potential. In addition, after years of development, China has formed a relatively complete and ultra-large-scale infrastructure network. The comprehensive transportation network, power generation installed capacity, power grid, 5G network and other scales all rank first in the world. At the same time, it has built a large-scale, and complete industrial system.
Third, facing new strategic opportunities, there is broad space for the development of new industrialization and new urbanization. The rapid development of a new round of scientific and technological revolution and industrial transformation has brought new opportunities. At present, a new round of scientific and technological revolution and industrial transformation represented by artificial intelligence, life sciences, new energy have entered a period of breakthrough development. Digital, intelligent, and green transformation are advancing at speed, which will enable China to leverage its advantages and improve total factor productivity and promote high-quality economic development.
Admittedly, China's economic development still faces new challenges. Yet, these challenges are inherent to the developmental process and are akin to the "growing pains" experienced during advancement. Despite this, the overall trajectory and momentum of economic development remain steadfast. Historical evidence and present circumstances demonstrate that China's economy has consistently thrived amid adversity. The robust external pressures being exerted will undoubtedly serve as a catalyst for driving China's economic growth.
American companies in China have recognized the improvement in China's economy and the continuous improvement of the business environment, which reflects the confidence of those investing in China and deepening their roots here, China's Ministry of Commerce (MOFCOM) spokesperson He Yadong said at a regular press conference on Thursday, referring to the results of the latest report from the American Chamber of Commerce in China (AmCham China).
About half of US companies surveyed view China as a top three global priority despite challenges such as tense China-US relations, the AmCham in Beijing said on February 1.
Specifically, this year, 50 percent of AmCham China members consider China a top three investment priority, up 5 percentage points on a yearly basis. The majority of US companies will continue their presence in China, with 77 percent saying that they have no plan to transfer production or procurement out of China, the chamber said on its website.
Almost all the US companies surveyed said that China-US relations are important, and nearly 30 percent expect bilateral relations to improve in 2024, according to the report.
In responding to media inquiries for comment on the report, the MOFCOM spokesperson said that the results of the corresponding report are another example of China remaining a prime destination for global investment.
At the same time, the ministry also notes that American companies in China have considered the "tense China-US relations" as the biggest operational challenge for four consecutive years, which precisely reflects the eager anticipation of the business community for stable development in the bilateral relations, He said.
China is willing to work with the US to earnestly implement the important consensus reached by the leaders of the two countries, fully leverage the role of multi-level communication mechanisms between the Chinese and American commerce departments, the spokesperson said.
Also, China is willing to promote mutually beneficial cooperation with the US, effectively manage differences, and create a favorable environment for pragmatic cooperation between the business communities of the two countries, He said.
China-US relations have achieved positive outcomes amid the intensive business interactions over the recent past. This week, a US Chamber of Commerce delegation led by the chamber's President and CEO Suzanne Clark visited China, and they are meeting with senior Chinese government officials and local business leaders.
China and the US are continuing to step up engagement, which analysts said would provide much-needed confidence for businesses in both countries and the international community amid increasing global challenges.
