China's cybersecurity technology ranks in the "top tier" globally, and in the realm of security and defense it can now stand on par with the US, Qi Xiangdong, chairman of Qi An Xin Technology Group, told the Global Times on Friday. However, there remains a gap between China and some developed countries such as the US in terms of investment in cybersecurity, Qi noted.

The rapid development of artificial intelligence (AI) brings new cybersecurity threats, and China should accelerate the integration of cybersecurity and AI technology to enhance its capability to deal with cybersecurity risks and uncertainties in cyberspace, Qi said.

Qi, who is also a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), said during a group interview ahead of the opening of the two sessions this year that the development of AI technology has become a hot topic for discussion both domestically and internationally.

However, the security risks it brings have also raised concerns. Some experts estimate that over the next decade, the malicious use of AI technology will grow rapidly, posing serious threats to political security, cybersecurity and military security.

Regarding this hotly debated topic, Qi believes that there are three main types of new cybersecurity risks that would come along with AI technology.

First, AI itself exacerbates security threats, such as data breaches, fraudulent attacks, and security in social governance.

"Generative AI technologies represented by ChatGPT and Sora can quickly generate phishing emails and write malicious software and code, leading to an explosive growth in the number of attacks and frequent AI fraud incidents," he told the Global Times.

Moreover, criminals can use "deepfake" technology for face-swapping and voice manipulation, creating fake videos, so that "seeing may not necessarily mean believing" could become the norm.

The second type of security risk lies in the potential exacerbation of the "imbalance between offense and defense" in the field of cybersecurity, resulting in greater vulnerability to attacks, Qi noted.

AI significantly lowers the barrier to entry for cyberattacks, allowing ordinary individuals without coding or technical knowledge to become hackers, and thereby increasing the number of cyberattacks. Meanwhile, specialized hacker organizations can leverage AI tools to modify and upgrade their attacks.

The third type of risk is that AI exacerbates military threats, with the trend of AI weaponization becoming apparent, Qi said. He noted that AI can be used in lethal autonomous weapons like "killer robots," enabling autonomous identification of targets, remote automated operations, concealing the source of attacks, establishing advantages in confrontation, and connecting networks, decision-makers, and operators, making military actions more targeted, precise, and widespread.

In fact, an increasing number of countries are exploring the application of AI in the military domain.

Qi told the Global Times that the key source for AI is big data, so China must first of all solve data security issue to address the threat from AI, he said.

To tackle this challenge, a comprehensive approach is needed, involving not only "intelligence against intelligence" but also "coordinated development between humans and machines," Qi said.

Under the new circumstances, it is necessary to strengthen the promotion of technological innovation, encourage leading companies in various industries and cybersecurity companies to cooperate, integrate AI security technology into digital scenarios, and provide effective security protection, Qi noted.

At the same time, it is necessary to leverage AI capabilities to accelerate innovation in cybersecurity technology and security protection systems, in order to "run faster than AI technology," he said.

"Security is all about speed," Qi said, noting that effective security protection for new scenarios created by new technologies is essential for the continued promotion and application of technology; otherwise, technology applications will perish in their infancy.

AI can also be applied in the field of cybersecurity, Qi stressed. A security expert can handle 120,000 alerts in one year, and "our innovative Q-GPT security robot increases the efficiency of alert handling by 70 times compared to a human," Qi said.

This could help security experts save an average of 80 percent of their "screen-watching" time. It also allows them to use the time saved to engage in high-value tasks related to business and direct robots to handle more complex security incidents, Qi said.

Over the past year, international cyberspace competition has become more intense, with frequent cyberattacks. In response to this situation, China is strengthening the construction of its internal cybersecurity system, Qi said.

The cyber armies and intelligence agencies of some unfriendly countries will never cease their cyberattacks on China, just as we cannot rid the world of bacteria and viruses. Qi explained that the internal cybersecurity system is like the human immune system. "It can kill bacteria and viruses, or prevent these bacteria and viruses from affecting our health. That's its function," he said.

Although China's cybersecurity technology has reached the top tier globally, there is still a gap between the investment in cybersecurity by Chinese government departments and enterprises compared to that in the developed countries, Qi noted.

"The US 2024 fiscal year budget shows that the cybersecurity budget of civilian federal agencies accounts for approximately 16.4 percent of the IT budget, while in China, it's still around 3 percent, which is a huge gap that needs to be filled," Qi told the Global Times.

"Security is paramount, and insufficient investment will inevitably lead to insecurity," he said. According to the experience of developed countries, cybersecurity investment should account for more than 10 percent of the total IT investment to support digital business.

Chinese state-owned enterprises (SOEs) are giving full play to the main role of central SOEs in strengthening the development of artificial intelligence (AI) in response to the central government's call, the Global Times learned from companies and experts.

The move reflects the government's and industry players' determination to promote the advance of AI technologies in order to achieve an industrial transformation and upgrading, experts said.

In a recent statement sent to the Global Times, China Telecom, one of the major telecommunications operators of China, said the company gives full play to the main role of central SOEs and reinforces its strength in driving technological innovations.

The company has led the way after it released the 100 billion parameter Xingchen large language model in 2023, with more than 10,000 daily active users. The operator said it had made Xingchen open source at the end of January, a move that will allow for easier and broader collaboration.

"By doing so, we will broadly empower more users to engage in AI advances, injecting vitality into the AI industry," the company told the Global Times, adding that it has served more than 1 million users nationwide.

China Mobile, another telecommunications operator, is building Asia's largest intelligent computing center, which is scheduled to open this year, according to media reports.

The Chinese government has ramped up the promotion of AI development among SOEs. On Monday, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) held a meeting on promoting the reform of SOEs, stressing the importance of pushing forward the transformation and upgrading of central SOEs through technological empowerment, including AI.

The SASAC held a meeting on February 19 calling on central SOEs to accelerate the layout and development of the AI industry, actively promote industrial renewal and achieve better growth.

SASAC Chairman Zhang Yuzhuo emphasized at the meeting the need to promote central SOEs to achieve better growth and play a greater role in the field of AI.

The meeting was attended by representatives of SOEs in various industries, including telecommunication and information, manufacturing, transportation and energy, as well as high-tech firms such as iFLYTEK, according to media reports.

The SASAC also vowed to accelerate the construction of a new batch of intelligent computing centers and better leverage the role of the platform for collaborative innovation among SOEs.

Market analysts said that recent intensified efforts by the SASAC and enterprises underscored the country's determination and resolve to promote advances in AI technologies among SOEs to achieve transformation and upgrading, enhance competitiveness, and achieve other goals.

Li Jin, chief researcher at the China Enterprise Research Institute in Beijing, told the Global Times on Wednesday that the meetings can be seen as the "first shot fired" in AI deployment, and it is likely to propel a new wave of industrialization for SOEs.

China has its own advantages in the field of AI, Li said, noting that with strong policy support, a huge population, strong data collection and capabilities and innovation, China's AI development will surely reach the world's advanced level in the next decade.

According to data released by the SASAC, SOEs completed 2.18 trillion yuan ($302.8 billion) of investment in strategic emerging industries in 2023, up 32.1 percent year-on-year.

"AI is growing rapidly, and central SOEs should become key players on the 'national team,' in embracing AI technology, in the face of a new round of industrial revolution," said Li.

Many areas across China have commenced construction of mega projects since the Chinese Lunar New Year holidays, including industrial upgrading, infrastructure and energy projects, in a boost for the ongoing economic recovery, according to media reports on Monday.

On Monday, authorities in East China's Shandong Province held a meeting to promote the construction of major projects, with construction work for more than 1,000 projects started, China Media Group reported.

The projects involve a total investment of about 1.21 trillion yuan ($167.84 billion), according to local media reports in Shandong. Among the projects, 660 were for industrial upgrades and 156 for transport and other infrastructure. In terms of funding, 600 projects were invested in by private enterprises and 338 were carried out by state-owned enterprises.

Shandong is not alone in expediting major investment projects, as work resumed after the Chinese Lunar New Year holidays. In East China's Zhejiang Province, construction work has also commenced on 333 projects with a total investment of 977 billion yuan. In Beijing, 160 projects with a total investment of 247.8 billion yuan are expected to be launched in the first quarter of 2024.

The accelerated implementation of major projects across the country is expected to offer a great boost for investment, which remains a major economic driver, in the first quarter of 2024. This in turn will help support the economic recovery.

Relatively slow growth in investment has weighted on China's economic recovery. In 2023, total fixed-asset investment only grew by 3 percent year-on-year, compared to 5.1 percent growth in 2022. Some economists have forecast that fixed-asset investment could grow around 5 percent in 2024.

Private investment is also vital for driving overall investment, and Chinese localities have stepped up support for private businesses, especially since the Chinese Lunar New Year holidays.

Shandong has taken various measures to support the resumption of work at private businesses following the Chinese Lunar New Year holidays. For example, on Monday, State Grid Yantai Power Supply Co, the local branch of the state-owned power giant, dispatched a special working group to a local firm, Laizhou Sanli Auto Parts Co, which exports auto parts to Europe, North America and many other regions, to help the firm with issues in using electricity.

The China Chamber of Commerce to the EU (CCCEU) on Friday launched a financial working group and held a forum on cross-border yuan payment and trade cooperation, aiming to strengthen China-EU financial collaboration, even as businesses seek to navigate challenges posed by increasing trade protectionism in the EU.

The new working group, following the digital and green working groups, represents the CCCEU's third working group and its first outside its Brussels headquarters. It underscores the Chamber's dedication to enhancing the presence of Chinese enterprises in the EU market, striving for mutual benefits while acknowledging the diversity across the region.

The establishment of the financial working group aims to foster financial cooperation between the EU and China as well as to promote the internationalization of the yuan. This initiative is part of the CCCEU's efforts to implement the outcomes of the 10th China-EU High-level Economic and Trade Dialogue, Sun Yanhong, a senior research fellow at the Institute of European Studies under the Chinese Academy of Social Sciences, told the Global Times on Saturday.

As Chinese enterprises increase their investment in Europe and amid the increasingly complex China-EU trade situation, this move by the CCCEU will contribute to the internationalization of the yuan, facilitating trade and investment for Chinese companies, said Sun.

Trade protectionism has emerged as a significant barrier to the longstanding trade partnership between China and the EU. Recent actions, including an antitrust investigation into Chinese train-maker CRRC Qingdao Sifang Locomotive by EU regulators, illustrate the EU's shift towards more protective measures.

The EU and China are each other's major trade partners, with China's total imports and exports of goods with the EU reaching 5.5 trillion yuan in 2023, a decrease of 1.9 percent compared to the previous year, according to the General Administration of Customs.

But the EU's increasing trade protectionist measures are prompting concerns among businesses about the negative impact on the close trade ties between Europe and China.

In response to Europe's trade protectionist measures against China, Ola Kaellenius, CEO of German auto giant Mercedes-Benz, criticized the approach, stating that any move by the EU to increase protectionism against China would be a destructive move for an economic region like Europe, according to Reuters.

Trade protectionist actions, such as the investigations against Chinese electric vehicles and CRRC, not only harm the development of Chinese companies in the EU but also cause European corporations like Mercedes-Benz to worry about potential counter measures from China, Sun said.

With the EU implementing more trade protectionist measures and export control policies, it could lead to significant losses for multinational corporations, with ASML from the Netherlands being a prime example, Sun stated.

In January, the Dutch chipmaking equipment producer ASML, warned that the US' export controls could impact its sales in China by 10-15 percent in 2024.

China and Thailand will sign a permanent mutual visa exemption agreement on Friday, said Thai Prime Minister Srettha Thavisin, as China's outbound tourism to Southeast Asia is expected to return to the "golden age."

Srettha was quoted by Thai media as saying that, by promoting implementation of the visa-free policy, Thailand, whose GDP is highly dependent on tourism, is about to see domestic tourism market flourish again following the return of Chinese tourists.

Srettha said on Wednesday in a keynote speech delivered at "Thailand 2024 The Great Challenges" that Thailand and China will sign a reciprocal visa exemption program this week. For Thailand's soft power, "the visa exemption program between the two countries is expected to upgrade the Thai passport's power to a higher level," he said.

Chinese Foreign Ministry spokesperson Wang Wenbin told a press conference earlier this month that the government departments responsible for the matter are in close communication on the specifics, after Srettha announced that Thailand and China will permanently exempt each other's citizens from visa requirements, starting from March.

The move will further enhance people-to-people exchanges and mutually exempt visas between China and Thailand serves the fundamental interests of both peoples, Wang said.

In September, Thailand implemented a five-month visa-free policy for Chinese tourists, which will continue until February 29, 2024. Chinese experts said the upcoming Spring Festival will see a new wave of people-to-people exchanges between the two countries as the expected visa exemption program will help tourism and economic and trade ties.

There are also signs that the tourism markets are expanding for both China and Thailand, and China's outbound tourism to Southeast Asia is expected to return to the poast "golden age".

"Between January 8-14, Thailand's inbound tourism performed 'better than expected,' mainly due to the smooth recovery the tourism markets in the region. Meanwhile, among the international tourists Thailand received during the period, Chinese tourists topped the list, increasing by 27.75 percent , compared to the number of 80,000 in the previous week," said Thai Tourism and Sports Minister Sudawan Wangsuphakijkosol.

Thailand beat the target of receiving 28 million foreign tourists in 2023, but the 1.2 trillion baht ($ 56.21 billion in yearly tourism revenue fell short of planned 2.38 trillion baht ($66.89 billion), the ministry said.

On online travel platforms, Thailand is most popular destinations for Chinese tourists traveling overseas during the Spring Festival holidays, according to a report sent by Qunar sent to the Global Times on Tuesday.

Tongcheng Travel said that the popular destinations for outbound travel during the coming holidays include Bangkok, Chiang Mai and Phuket.

The decision to sign an agreement on mutual visa exemption between China and Thailand has huge significance for both sides, especially for Thailand, a country which highly dependent on tourism to boost its economy. It will gain lots of benefits from being the largest tourist destination for Chinese tourists, Xu Liping, director of the Center for Southeast Asian Studies at the Chinese Academy of Social Sciences, told the Global Times on Thursday.

The mutual visa exemption will inject stronger momentum into the close bilateral relationship and accelerate people-to-people exchanges, expand economic cooperation, with a view to building a China-Thailand community with a shared future, said the expert. 

China's annual Spring Festival travel rush, also known as chunyun, kicked off on Friday, and saw tens of millions of people rush to take trains, planes and other packed vehicles to reunite with their friends and families on the first day. Red lanterns, Chinese knots and bamboo dragons were hung up at train stations and airports, and passengers with luggage and gifts formed a vivid display of a robust and vibrant Chinese economy.

As the country braces for the largest annual human migration on the planet with a record 9 billion domestic trips expected, analysts projected a fresh consumption boom for the economy, which will not only give a boost to the world's second-largest economy, but also stimulate the confidence of enterprises to step up investment and innovation.

Dismissing the US-led Western bad-mouthing of the economy, they expressed full confidence in the Chinese economy's prospects, saying the country's institutional advantage in swiftly and effectively turning top policy blueprints into real actions will ensure the continuous stable upswing recovery of the economy in 2024, which is expected to grow by around 5 percent.

Fun and festive

China is expected to see more than 182 million passenger trips on Friday, the first day of its 40-day Spring Festival travel rush, according to a government estimate.

The hustle and bustle of chunyun was on vivid display at Beijing West Railway Station, one of the busiest train stations in the country. On a chilly morning, at around 7 am, the station was already crowded. Some passengers got off taxis before they even reached the drop-off point, and walked into the station pulling their luggage.

The noisy station was filled with vibrant colors and joyful laughter. Red lanterns, paper-cuts, Chinese knots and bamboo dragons could be seen at the station and on trains, immersing passengers in the fun and festive atmosphere of the upcoming Spring Festival.

"I couldn't wait to return to my hometown this Spring Festival and got up at 3 am this morning. When I arrived at the station, the festive decorations and cheers from the large crowd of passengers made me feel like the Spring Festival is already here," a 35-year-old worker named Li He told the Global Times on Friday.

On Friday alone, Beijing West Railway Station was estimated to have handled 143,000 passengers, and is expected to see a total of 4.92 million passengers, a spokesperson for the station told reporters on Friday morning. Operations were smooth with many workers guiding passengers quickly through security checkpoints and to their departure gates - a reflection of the improved capacity and services of China's ever-expanding modern transport network.

On Friday, China Eastern Airlines debuted all four of its domestically-produced C919 large passenger jets, carrying 111 passengers from Shanghai to Chengdu, Southwest China's Sichuan Province by noon. In the country's civil aviation sector, a total of 2 million passenger trips are expected to be handled on Friday, up 94 percent from the same day in 2023 and a 15 percent rise from that in 2019.

At Beijing Daxing International Airport, a passenger named Chen Peng told the Global times that he is taking his family on a trip to Northwest China's Xinjiang Uygur Autonomous Region.

"It's the first time that we are taking my 6-year-old daughter to such a far region. In 2023, I got promoted with a higher income, and I hope to find a better life for my family and let my daughter see that our country is becoming better and better," Chen said.
Boosting confidence

Extending the strong momentum during Spring Festival, the country's consumption sector - be it in cities or villages, online and offline, and in green spending or the silver economy - will continue to rebound robustly, with retail sales expected to exceed 50 trillion yuan ($7.04 trillion) in 2024, said Wei Jianguo, former Chinese vice minister of commerce and executive deputy director of the China Center for International Economic Exchanges.

This will not only play an important role in driving the Chinese economy but also in stimulating the confidence of enterprises, especially private companies, in stepping up investment and innovation, Wei told the Global Times.

"The year 2024 is the Year of the Dragon in the Chinese calendar. It is also the year that the Chinese economy will continue to keep an upward recovery trend, just like 'a dragon raising its head'," Wei said.

In response to the US-led Western campaign bad-mouthing and smearing China's economy after the release of the two economies' GDP data, analysts said the rapid economic growth of major economies contributes to global economic recovery and will help elevate the confidence of investors and consumers across the world. They expressed full confidence in the prospects of the Chinese economy, projecting that it will maintain around 5 percent growth in 2024.

Although the US' nominal GDP in 2023 of 6.3 percent is higher than China's 5.2 percent, the US' real GDP is 2.5 percent, data showed. "Part of the US' high nominal GDP growth rate is boosted by inflation and appreciation of the US dollar. Once these factors ease, China's GDP growth rate will be faster than that of the US," He Weiwen, senior fellow from the Center for China and Globalization, told the Global Times on Friday.

In addition, even the US' nominal GDP growth rate has shown a declining trend over the past several years, down from 9.2 percent in 2022 and 10.1 percent in 2021, which shows that the US economy is not as strong as some US politicians have touted, He Weiwen said.

The first and foremost challenge for the US economy is repeated standoffs due to its debt ceiling. If US debt continues to rise, it will definitely cause a US dollar crisis, Li Daokui, director of Tsinghua University's Academic Center for Chinese Economic Practice and Thinking, said at the World Finance Forum on January 20.

He Weiwen said the Chinese economy will continue to maintain overall stable recovery in 2024. Compared with specific GDP goals, it's more important to stabilize the property sector, dissolve local government debt risks, nurture new growth points, boost the continuous consumption rebound and improve the external environment, he said.

He said China must be firmly committed to opening-up by actively conducting cooperation with all economies and introducing outstanding knowledge, technologies and resources to develop new productive forces.

On Monday, a meeting of the State Council pledged efforts to enhance the innovation and coordination of policy tools, consolidate and strengthen the trend of economic recovery, and promote the stable and healthy development of the capital market.

Following the key meeting, multiple government agencies including the People's Bank of China, National Financial Regulatory Administration and National Development and Reform Commission, China's top economic planner, announced a series of measures, with the cut of the reserve requirement ratio by 50 basis points starting from February 5 being an important move.

In early January of 2024, China's Foreign Minister Wang Yi, who is also a member of Communist Party of China Central Committee's Political Bureau, visited Egypt, Tunisia, Togo, Cote d'Ivoire, Brazil and Jamaica, all developing countries and good partners of China. The visits, once again, showed that Beijing has always stood together with the countries in the Global South, proactively advancing the process of multilateralism in global affairs and promoting the modernization cause of the Global South. 

Putting forward a four-point proposal on strengthening cooperation among the Global South nations in South Africa last year, Wang said that the voice and representation of the Global South countries need to be expanded to safeguard their common interests. He named political independence as the defining feature of the Global South countries, justice and fairness as their common proposition, and economic moderation as their common goal.

Seen across the landscape, the world is now faced with unprecedented challenges but also accelerated changes, and an important characteristic of these changes is the collective economic rise of the developing countries. China, an important member of the Global South, will continue to facilitate broader integration with other developing countries in Asia, Africa, Latin America and elsewhere to advance their modernization.

China and most countries of the Global South share similar historical experiences and journeys of struggle, and all of them had in the past 100 or so years emerged from the great cause of fighting against aggression, colonialism, plunder, hegemony, and power politics. Therefore, all Global South countries are naturally bound to stand for world justice, economic integrity and solidarity, and aim to build a better global governance system.

It is through those years of struggle and hard work, along with the evolving changes in this century, that the Global South has gradually "become an important force driving reforms in the world order and seeking political independence, national rejuvenation and international justice," said an essay written by Liu Jianchao, minister of the International Department of the Communist Party of China's Central Committee.

Now, the world is embroidered in constant volatilities, skirmishes, clashes and hostilities. Some countries and military alignments have continued to bully others, killing innocent people and children, while imposing economic and technology sanctions to stymie the rise of other emerging economies such as China. Unilateralism and protectionism are rearing their ugly heads and attempts to build "small yards with high fences" to decouple from other economies, sever industry and supply chains, and even stoke bloc confrontation are rampant on the globe. 

To build a better world, and say no to some countries' reckless de-globalization attempts and power politics, the Global South countries should unite and join hands to face the headwind together, by resolutely embracing globalization, and integrating their economies while making the rules of globalization more reasonable and conditions more favorable. Yes, globalization has suffered some setbacks now, and the Global South countries have to make a choice to avoid being bullied and pushed around. 

As proposed by Liu, the Global South is the source of strength for global multi-polarity and now it has got an important opportunity to play a larger and more significant role on the world stage. 

And, countries of the Global South could uphold the principle of "planning together, building together and benefiting together", pressing ahead the Belt and Road cooperation to a new stage of high-quality development, injecting new momentum into their economic growth, while creating new opportunities for global development and building a new platform for international cooperation. Yes, the Global South countries could aim at setting a new type of globalization that involves more diversified players, with an effective platform that is more open, inclusive and beneficial for all participants.

In terms of land size, vitality and growth potential, the rise of the Global South is imperative and of great importance for the world. For many years, the voice of the Global South has been muted and their reasonable concerns have been neglected. The evolving trend shows the collective rise of the Global South is promoting greater democracy in international relations and helping reshape the global economic and political landscape. 

According to statistics, the land area of the Global South countries account for some 70 percent of the world's total, and these countries' combined population and contribution to world economy account for four fifths of the world's total. Working together to advance infrastructure and economic modernization and their peoples' living standard is what the Global South countries should unite and strive for. 

The narrative being trumpeted by some Western pundits suggesting "the weak will be weaker" is immoral, wicked and untenable. As many countries of the Global South were suppressed and exploited by colonizers and started to develop their economies relatively late with a weak foundation, these developing countries should unite and learn from each other to promote their modernization process. And, to realize modernization, the countries of the Global South should seek a path that best suits their respective national conditions. 

China is rooted in the Global South and it cares about the Global South. China has always stood in solidarity with other countries of the Global South, and has been an important player and true partner in South-South cooperation. So China has a lot to share with other developing countries and help them achieve modernization at the earliest date. 

As Liu noted in his article, the Global South should strengthen strategic communication and policy alignment, remove barriers and share resources, technology and experiences to build a modern and well-developed Global South market. "On the one hand, we should strengthen the Global South's synergy to defend our legitimate rights and interests by tightening the important mechanisms including BRICS, the Shanghai Cooperation Organization and the G77+China. On the other hand, we must stay away from zero-sum games and cold war mentality." 

By all metrics, the modernization and economic rise of the Global South is unstoppable and irreversible, and a prosperous, strong and united Global South will sustain global economic growth, environmental progress and help bring about a community of the Global South with a shared bright future. 

At a time when we face multiple economic challenges, it's expected that reform and a wave of industrialization will create new growth momentum, but some Westerners have deep misunderstandings of the Chinese economy, as they claim China's increased industrial investment poses a major risk to the global macroeconomic balance. This misunderstanding is not difficult to correct because it is largely based on misconceptions.

China has failed to shift toward a new strategy based on boosting household consumption, so it's betting on increased industrial investment and manufactured exports to stimulate the economy, according to a media report. 

Citing French daily Le Monde commentator Stéphane Lauer, the report claimed China's manufacturing investment may create a crisis of overcapacity, endangering the global economic system and breaking the balance of the status quo. This reflects a biased and distorted judgment about China's economic prospects.

China's increasing industrial investment does not equate to "a crisis of overcapacity." Whether China exports advanced production capacity or excess capacity should be determined by the global market, instead of Western politicians and media outlets. 

Under the premise of free trade, if Chinese industrial products are popular in the global market, then they will represent advanced production capacity. On the contrary, if those goods become unsalable, they can represent excess capacity.

China has made strides in recent years in boosting research and development spending, expanding clean-energy production and using new production technologies. The country has gained a competitive advantage in some technology-intensive industries. It is absurd to say that China is exporting its outdated excess capacity.

Significant investment and growth in the Chinese manufacturing industry is expected to continue in 2024. It is ridiculous to lead people to believe that China must copy the old path of Western modernization, in which many countries relied too much on consumption, and began deindustrialization when their industrialization process was not complete.

Deindustrialization has become a big challenge related to governance, and it is linked to social unrest and economic chaos in parts of the world. 

China cannot afford to fall into the trap of deindustrialization. With a population of 1.4 billion, China requires a mature manufacturing sector to provide quality employment. Chinese enterprises should focus on making breakthroughs in key technologies and promoting industrialization.

According to the report to the 20th National Congress of the Communist Party of China (CPC), China will continue to focus on the real economy in pursuing economic growth, and move the manufacturing sector toward higher-end, smarter and greener production. 

China's rebalancing of its economy from investment-led growth to consumption is likely to accelerate in the coming years, as the country steps up its policy support to increase consumer spending, but, for a long time to come, China's manufacturing sector will still play an important role in the economy.

Undoubtedly, China will export more manufactured products, bringing greater competition in the global market. But this does not mean that China will export excess capacity. On the contrary, more intense competition will encourage global manufacturers to upgrade their technology and sell their products at lower prices, thereby benefiting global consumers with efficient production.

Some Westerners claim that China's increased industrial investment poses a major risk to the global macroeconomic balance, or that China is exporting its excess capacity to the global market. Such erroneous remarks have been used by some Western politicians as an excuse to pursue trade protectionism and crack down on Chinese products and Chinese companies. 

Their real purpose is to exclude China from the global industrial chain and protect Western companies from competition, but that is an almost impossible task. The West should prepare for more intense global manufacturing competition.

The Chinese yuan outpaced the US dollar to become the most traded foreign currency on Russia's Moscow Exchange in 2023, with the yuan trading volume accounting for almost 42 percent of all foreign currency traded on the exchange, according to media reports.

The volume of yuan trading on the exchange in 2023 more than tripled year-on-year to reach 34.2 trillion roubles ($391.5 billion), Russian news agency Sputnik reported on Tuesday, citing Russian media outlet Kommersant Daily.

It said the proportion of US dollars traded on the exchange was less than 40 percent, following the Chinese yuan. The third currency came in as euro, which accounted for less than 18 percent.

Last year, Russia's need of other friendly countries' currencies also reported increases, Sputnik said, without giving details.

Trade between China and Russia hit a record high in 2023, reaching 1.69 trillion yuan ($235.9 billion), an increase of 32.7 percent on a yearly basis, Chinese customs data showed on Friday.

Editor's Note:

The past year 2023 was a busy one for China in terms of its interactions with the rest of the world. Its foreign relations always have a profound impact on its economy, strategy and people's livelihoods. The Global Times, in collaboration with China's universities and think tanks, is now releasing a series of country reports. The aim of these reports is to enhance understanding of relevant countries, provide a framework for dealing with China's relations with these countries, and grasp the trajectory of these relations.

In the fourth report of the series, we focus on Tajikistan, a country located in Central Asia.

Over the past decade, China and Tajikistan have collaborated to build the China-proposed Belt and Road Initiative (BRI), achieving significant progress in infrastructure, agriculture, culture and trade through extensive cooperation. The two countries should further promote the bilateral high-quality construction of the BRI by taking the following actions: first, fully implementing the consensus reached at the China-Central Asia Summit; second, prioritizing the United Nations 2030 Agenda for Sustainable Development, promoting relevant projects in Tajikistan with infrastructure projects as the core, attaching importance to small-scale projects, such as dispatching Chinese medical teams to Tajikistan at the grass-roots level and promoting agricultural technology in villages; third, publicizing the mutually beneficial cooperation between China and Tajikistan.

Fruitful results of BRI cooperation

Tajikistan has been one of the countries that have responded most positively to the BRI since it was put forward. In September 2014, China and Tajikistan signed a Memorandum of Understanding on building the Silk Road Economic Belt during Chinese President Xi Jinping's state visit to Tajikistan. In 2016, Tajikistan enacted the National Development Strategy of the Republic of Tajikistan for the period up to 2030, which is in deep connection with the BRI. In 2017, President of Tajikistan Emomali Rahmon was in China for a state visit, during which he attended the Dialogue between Emerging Market Economies and Developing Countries, and the two countries signed a joint announcement on establishing a comprehensive strategic partnership. In May 2023, Rahmon came to China for the China-Central Asia Summit.

Thanks to the leadership of the heads of state of China and Tajikistan, bilateral cooperation in the economic and trade fields has developed rapidly. The BRI has brought new vitality to Tajikistan, and the two countries have achieved fruitful results in investment, trade and production capacity cooperation. 

In terms of investment, China is Tajikistan's largest source of foreign investment. The Export-Import Bank of China and other institutions have provided financing for many important infrastructure projects in Tajikistan, including thermal power plants, power grids and transportation. This support has effectively helped Tajikistan in initiating key infrastructure projects and injected a strong impetus into the economic and social development.

In 2017, in the field of aiding construction, China pledged a 1.5 billion yuan grant (over US$230 million) to build new parliamentary buildings for the Tajik government in Dushanbe.

Under the impetus of the BRI, a number of landmark large-scale projects have been successfully implemented in Tajikistan. In transportation construction, the Vahdat-Yavan railway tunnel has become the hub of international railroad transportation connecting China, Tajikistan, Afghanistan and Iran, and the successful completion of the Dushanbe-Chanak Highway has improved Tajikistan's transport system. 

In power construction, the operation of Dushanbe No.2 thermal power plant in Dushanbe marked the city's power shortage in winter becoming a thing of the past. The South-North power transmission line (500 kV) constructed by TBEA connected Tajikistan's two major power grids in the north and south of the country, thus alleviating the dependence of the northern regions of Tajikistan on the power supply of Uzbekistan and Kyrgyzstan.

In production capacity cooperation, Tajikistan has turned from a cement importer to an exporter with the support of China. The Tajik-Chinese joint venture, Zeravshan Gold Company (ZGC), has become one of the largest gold mining enterprises in Tajikistan.

China and Tajikistan have also been cooperating in the cultural field. In 2015, the China University of Petroleum (CUP) built the first Confucius Institute with the Metallurgy and Mines Institute of Tajikistan in 2015.

In 2022, China opened its first Central Asian Luban workshop in Tajikistan at the Tajik Technical University. The Luban Workshop in Tajikistan is an important initiative to implement the important consensus of the two countries and the results of the China-Central Asia Foreign Ministers' Meeting, and it is a typical case of serving the BRI and sharing China's vocational education experience with the world.

Driven by the BRI, a number of Chinese provinces and municipalities have carried out practical cooperation with local governments in Tajikistan: China's Henan Province and Tajikistan have jointly built a new high ground for regional economic cooperation; China's Shaanxi Province and Khatlon region of Tajikistan established twinning relations and built up a cooperation mechanism; the Tajik city of Khujand (the capital of the Sughd Province) and the Chinese city of Taiyuan (the capital and largest city of Shanxi Province in China) signed an agreement on the establishment of sister-city relationships.

Fostering connectivity under BRI

Tajik government officials publicly express their support for various Chinese initiatives, including the BRI, a global community of shared future, the Global Development Initiative and the Global Security Initiative. For Tajikistan, active support for the BRI allows the country to benefit from Chinese investments in critical infrastructure projects. Additionally, in areas such as energy, industry and agriculture, Tajikistan receives substantial financial support and assistance from China.

Tajikistan's society suggests that Tajikistan should actively integrate into the BRI for development. It is recommended that Tajikistan actively align its national development strategy with the BRI.

Tajikistan considers the BRI more suitable than other major countries' plans, such as the US' New Silk Road Initiative, which is deemed "overly politicized." Tajikistan believes that the BRI can significantly contribute to completing essential infrastructure projects in the country.

Due to Western sanctions on Russia, which have resulted in a significant decrease in remittances from Tajik migrant workers, Tajikistan's economy is currently facing challenges. In light of this economic crisis, Chinese investment is being considered as a crucial option to alleviate the situation. Jointly building the BRI with China is deemed highly significant for Tajikistan. It is expected to reduce logistics costs and time in Central Asia, promote the circulation of goods and funds, raise living standards for Tajikistan's people and advance modernization.

The 2023 China-Central Asia Summit marked a historic milestone in China-Central Asia relations. China and Tajikistan should fully implement the consensus reached at this summit. They should engage in a series of in-depth collaborations in key areas such as social governance, security, economic cooperation and cultural exchanges, strengthen legislative cooperation between the two countries and explore bilateral repatriation legal mechanisms in line with international standards. They also should foster practical cooperation at the local level. 

Enhancing economic cooperation is mutually beneficial for both China and Tajikistan. Strengthening economic ties and attracting Chinese investment are logical choices for Tajikistan, as various sectors of Tajik society are expected to benefit from local economic development. For this to happen, the following needs to be done. First, advancing regional connectivity, strengthening logistics infrastructure development in Tajikistan and enhancing customs clearance efficiency for goods. Second, leveraging technological advantages such as satellite remote sensing to improve efficiency in Tajikistan's resource development and ensure mining safety. Third, facilitating the entry of Chinese new energy companies into the Tajik market to assist the development of green energy. Fourth, enhancing cooperation with Tajikistan in high-tech fields such as new agriculture, digital economy, and 5G communication to support its transformative development. Fifth, promoting Tajikistan's participation in the supply chain of China's advantageous industries, such as new energy vehicles and photovoltaic power generation. Sixth, assisting Tajikistan in poverty alleviation primarily through investment, supplemented by aid, in accordance with the UN's 2030 Agenda for Sustainable Development. Seventh, expanding channels for the import of Tajikistan's agricultural products.

China should try to win hearts and minds of Tajik people. First, the two countries can conduct basic public education in Tajikistan's cities and towns, focusing on green agriculture, environmental protection, and healthcare and assisting the Tajik government in addressing livelihood issues. Second, relevant Chinese institutions can engage in various levels of seminars and discussions with Tajikistan's think tanks and universities about China's achievements in human rights, poverty alleviation, sustainable development and anti-corruption efforts. Third, they can establish a China-Tajikistan civil diplomacy platform with a primary focus on sports and arts diplomacy, intensifying efforts in civil diplomacy. Fourth, they can research how Western media report China's presence in Central Asia and deal with their slander accordingly.

Outlook for 2024

In 2024, guided by the political mutual trust and the outcomes of the China-Central Asia Summit, China and Tajikistan will demonstrate robust cooperation momentum. Both sides will continue mutually beneficial and pragmatic cooperation in traditional areas including infrastructure, trade and cultural exchanges as well as promote bilateral common development. Breakthrough achievements are expected in emerging fields like 5G communication, digital economy and new energy vehicles. In 2024, mutual cooperation and win-win collaboration remain the overarching direction for China-Tajikistan relations. However, it is essential to remain vigilant, considering global uncertainties arising from profound changes unseen in a century, the ongoing Russia-Ukraine conflict, escalating great-power competition, the Afghan issue, as well as rising regional instability.