VOL. XXX No. 7 July 2018 Rs. 40.00 Ambassador Luo Zhaohui met with the Minister of Ambassador Luo Zhaohui met with Prof. Lokesh Commerce and Industry Mr. Suresh Prabhu. Chandra, Chairman of Nehru Memorial Museum & Library and former President Indian Council for Cultural Relations

Ambassador Luo Zhaohui gave speech at the National Defense College of India.

Ambassador Luo Zhaohui met with the Vice Chairman of Ambassador Luo Zhaohui met with Venerable Hui Xian of China Council for the Promotion of International Trade the Fo Guang Shan Educational and Cultural Center in Mr. Chen Zhou. New Delhi. China and World Trade

1. China and the World Trade Organization 4 2. Statement by the Ministry of Commerce 17 3. China Refutes US Accusations of Violating WTO Rules 19 4. United We Prosper 20 5. China’s Countermeasures in the Trade War are Justifiable, Legitimate: Experts 22 6. US Unilaterally Initiated a Trade War without any International Legal Basis: Expert 24

China-India Relations

1. Senior Chinese Official Calls for BRICS Cooperation in Global Governance 25 2. China and India Hold the Second Round of Dialogue on Maritime Cooperation 26 3. China Announces Tariff Adjustment under APTA Arrangement 27 4. AIIB Meeting Kicks off with Focus on Private Sector Investment in Infrastructure 27 5. An Indian Pilgrim’s Journey in Xizang 29

External Affairs

1. Xi Urges Open World Economy 31 2. Xi Jinping Delivers a Speech at The Opening Ceremony of The Eighth Ministerial Meeting 33 of The China-Arab States Cooperation Forum 3. President Xi Jinping Meets UNESCO Director-General Audrey Azoulay 35 4. Chinese President Meets World Bank President in 36 5. Xi Jinping, Kim Jong Un Hold Talks in Beijing 38 6. Premier Li, President Tusk, President Juncker Engage Media 41 7. Multilateralism Stressed with European Leaders 42

Culture & Life

1. Egrets at Hongze Lake Wetland in E China’s 46 2. Students Learn Making Skills of Intangible Cultural Heritages During Summer Vacation 47 in 3. Giant Panda “Yuan Zai” Celebrates 5th Birthday at Taipei Zoo 49

1. Delegation from Taiwan Visits Xizang 50 2. Mongolian Monks Finish Studies in China’s Top Tibetan College 51 3. Youth from Qinghai and Hong Kong Strengthen Cultural Exchange via Thangka 52 4. Summer Carnival on Grassland in SW China 53 5. Ceremony to Pray for Harvest held During Ongkor Festival in China’s Xizang 54

Book Review - Xi Jinping - The Governance of China-II 56 Flights Between China and India 57 China and World Trade

China and World Trade CHINA AND THE WORLD TRADE ORGANIZATION The State Council Information Office of the People’s Republic of China June 2018

Foreword national policy of reform and i n t e g r a t i o n i n t o e c o n o m i c o p e n i n g - u p a n d p u r s u i n g globalization, marking a new historic In 1978, China started the historic development with its door wide open. stage of reform and opening-up. process of reform and opening-up. A model of all-round, multi-level, and Since its accession to the WTO, This is a glorious chapter in the wide-ranging opening-up has China has been a strong advocate for development epic of the country and gradually taken shape. China is closely f r e e t r a d e . C h i n a h a s the nation composed by the Chinese connected with the outside world and comprehensively fulfilled its people, recording the great journey of has made a significant contribution to c o m m i t m e n t s t o t h e W T O, common progress of China and the the noble cause of global peace and substantially opened its market to the rest of the world. It has not only development. world, and delivered mutually profoundly changed the country, but beneficial and win-win outcomes on also greatly influenced the whole In 2001, China acceded to the a wider scale. Through these efforts, world. Over the past 40 years, China World Trade Organization (WTO). China has lived up to its responsibility has been adhering to the fundamental This was a milestone in China’s as a major country.

4 News From China July 2018 China and World Trade

The multilateral trading system, opening-up for win-win results, converging interests and a high with the WTO at its core, is the vigorously promotes the Belt and degree of interdependence. cornerstone of international trade Ro a d I n i t i a t i ve , a n d s h a r e s and underpins the sound and orderly opportunities and benefits with other The Chinese government is development of global trade. China countries and their people while publishing this white paper to give a firmly observes and upholds the developing China itself, enhancing full account of China’s fulfillment of WTO rules, and supports the global wellbeing and common its WTO commitments, to explain multilateral trading system that is prosperity. China’s principles, stances, policies, open, transparent, inclusive and non- and propositions regarding the discriminatory. China has participated At the historic starting point of a multilateral trading system, and to in all aspects of WTO work, made its new era, China’s door of opening-up describe China’s vision and actions in voice heard and contributed its own will not be closed and will only open advancing higher-level reform and proposals on improving global even wider. Opening-up was key to opening-up. economic governance. China is an China’s economic growth over the active participant, strong supporter past 40 years. In the same vein, high- I. China Has Faithfully and major contributor in the quality development of China’s Fulfilled Its WTO Accession multilateral trading system. economy in the future can only be Commitments achieved with greater openness. China Accession to the WTO has will continue adhering to the Since China acceded to the 1 boosted China’s development and fundamental national policy of World Trade Organization1 in 2001, benefited the rest of the world. reform and opening-up. China will it has made continued efforts to Propelled by a new vision of more proactively embrace economic development, the Chinese economy is globalization, adopt policies to 1 C h i n a ’s H o n g K o n g S p e c i a l transitioning from rapid growth to promote high-standard liberalization Administrative Region, Macao Special high-quality development. China has and facilitation of trade and Administrative Region, and Taiwan Province all became members of the become a major stabilizer and driving investment, and work together with WTO as separate customs territories at force for the world economy. China other countries to build a community different times, the cases of which are stays committed to the strategy of of shared future with extensive not discussed in this white paper.

News From China July 2018 5 China and World Trade improve its socialist market economy government levels, covering trade, import licenses, specific import system, further align its policies with investment, IPR protection, etc. In tendering requirements and other multilateral trade rules in all areas, 2014, China issued an official non-tariff measures with regard to honor its commitments on opening document on furthering trade policy 424 items such as automobiles, trade in goods and services, and compliance with WTO r ules, machinery and electronics products, strengthen intellectual property rights requiring government at all levels to and natural rubber. It introduced (IPR) protection. Remarkable assess proposed trade policies in tariff rate quota administration for improvements have been made in accordance with WTO agreements important bulk commodities, i.e. enhancing the stability, transparency, and China’s commitments. In 2016, wheat, corn, rice, sugar, cotton, wool, and predictability of its opening-up China set up a legality review wool top, and chemical fertilizers. policies. China has contributed mechanism to examine normative significantly to the effective operation d o c u m e n t s , e n h a n c i n g t h e Liberalizing the right to trade. of the multilateral trading system. t r a n s p a r e n c y o f a n d p u b l i c participation in policy development. To diversify entities and 1. Improving the socialist stimulate their enthusiasm to engage market economy and relevant legal 2. Fulfilling commitments on in foreign trade, in July 2004 China system trade in goods replaced approval system with registration system for foreign trade Consistently reforming to Substantively reducing import authorization, releasing immense develop the socialist market tariffs. By reducing import costs to vigor of private businesses which has economy. China has accelerated boost trade, China has shared its led to a surge of foreign trade in the efforts to improve the socialist market development dividend and growing private sector. With rapid growth and economy system and strengthen the markets with the rest of the world. By an increasing share of the market, market system. This has involved 2010, China had fulfilled all of its private companies have become reorganizing the relationship between tariff reduction commitments, important actors in China’s foreign the government and the market, reducing the average tariff level from trade. In 2017, foreign trade by letting the market play the decisive 15.3 percent in 2001 to 9.8 percent. It private companies and foreign- role in resource allocation and the lowered the average tariff rate of i nve s t e d e n t e r p r i s e s ( F I E s ) government play its role better. manufactured goods from 14.8 to 8.9 accounted for 83.7 percent of the Education campaigns on WTO rules percent. It cut the average tariff rate country’s total trade volume, up from have been extensively rolled out, of agricultural products from 23.2 to 57.5 percent in 2001. In 2017, raising public awareness of the 15.2 percent, about one fourth of the Chinese private companies, which market, competition, rules and the global average and far lower than take the largest share of China’s concept of rule of law. those imposed by the WTO’s exports, contributed 46.6 percent of developing members (56 percent) and all goods and services exported. Continuously improving the developed members (39 percent). legal system of socialist market China’s maximum bound tariff rate of economy. Upholding the rule of law, agricultural products is 65 percent, China has faithfully observed and while the corresponding rates of the implemented WTO rules, improved United States, the European Union its laws and regulations on market and Japan are 440, 408 and 1,706 economy, and built up a legal system percent respectively. in line with multilateral trade rules. After its accession, China launched Significantly lowering non- major efforts to review and revise tarif f bar rier s. To increase relevant laws and regulations, transparency and facilitate trade, 3. Fulfilling commitments on involving 2,300 laws, regulations and China has reduced unnecessary trade trade in services departmental r ules at central restrictions. By January 2005, in government level, and 190,000 accordance with its commitments, Extensively opening up the policies and regulations at sub-central China had eliminated import quotas, services market. China has striven to

6 News From China July 2018 China and World Trade boost the services industry and and accorded national treatment to cooperation between Chinese and increase its share of contribution to foreign capital in 80 sub-sectors such foreign enterprises, and protects the the economy. Of the 160 services sub- as telecommunication, rail transport, lawful IPR owned by foreign sectors under the 12-sector WTO and tourism services. In 2010, foreign enterprises in China. At the same classification, China committed to direct investment (FDI) flowing into time, we hope foreign governments opening up 100 sub-sectors under 9 China's services industry surpassed will also improve protection of sectors, a level approximate to the that into manufacturing industry for Chinese IPR. average 108 sub-sectors committed by the first time. In 2017, FDI in the the developed members of the WTO. services industry made up 73 percent Building a full-fledged legal By 2007, China had honored all of its of all FDI in China. system on IPR protection. Since commitments on trade in services. acceding to the WTO, China has 4. Fulfilling commitments on formulated and improved its laws and C o n t i n u o u s l y r e d u c i n g IPR protection regulations on IPR protection, set up restrictions. China has step by step IPR working mechanisms with many lowered the threshold for foreign Strengthening IPR protection on countries, drawn upon advanced investment to enter the services China's own initiative. Strengthening international legislative practices, and sectors in China, lifted geographical IPR protection is the centerpiece for built an IPR legal system that and quantitative restrictions on improving the property rights conforms to WTO rules and suits services according to schedule, and protection system, and it would national conditions of China. The constantly broadened the business provide the biggest boost to the amended Trademark Law sets up a scope for foreign investment in the competitiveness of the Chinese system of punitive damages. The services sectors. China has permitted economy. It not only serves China's amended Anti-Unfair Competition wholly foreign-owned enterprises in own development needs, but also Law improves the protection of trade 54 sub-sectors such as courier, h e l p s c u l t i v a t e a b u s i n e s s secrets, identifies act of confusion, banking and property insurance environment that is law-based, introduces the concept of sign and services, allowed foreign majority internationalized and business- expands the scope of protection for ownership in 23 sub-sectors such as f r i e n d l y. C h i n a e n c o u r a g e s sign. Currently China is working on computer and environment services, technological exchang es and amending the Patent Law and the

News From China July 2018 7 China and World Trade

Copyright Law. and individuals in China reached English bilingual edition); and the 136,000, growing by threefold Ministry of Commerce regularly Continuously strengthening law compared with 33,000 in 2001. publishes trade policies in China enforcement on IPR protection. According to the World Intellectual Foreign Trade and Economic China has enhanced the dominant Property Organization, 51,000 patent Cooperation Gazette. role of the judiciary in IPR protection applications filed from China through to significantly raise the cost for the Patent Cooperation Treaty were Comprehensively implementing offenders and fully unlock the accepted in 2017, second only to the the WTO notification obligations. deterrent effect of relevant laws. The US. China has submitted notifications to State Intellectual Property Office has the WTO on a regular basis been restructured to strengthen law 5. Fulfilling commitments on concerning the amendment, revision enforcement. China has set up three transparency and implementation of relevant laws, IPR courts in Beijing, and regulations and measures as required , and special judicial Providing a solid legal basis. The by the WTO. By January 2018, China organs at 15 intermediate courts in Legislation Law, the Regulations on had submitted over one thousand , , , Xi'an and Procedures for Formulation of notifications covering areas such as other cities to handle cross-regional Administrative Regulations, and the central and sub-central subsidy IPR cases, including those related to Regulations on Procedures for policies, agriculture, technical patents. China strengthened Formulation of Rules explicitly regulations, standards, conformity administrative law enforcement on provide for the solicitation of public assessment procedures, state trading, intellectual property protection and c o m m e n t s o n d r a f t l a w s , trade in services, and IPR laws and launched special campaigns targeting administrative regulations and rules. regulations. outstanding problems, which The legislative affairs commission of effectively protected intellectual the Standing Committee of the 6. Making tremendous property rights. Such campaigns National People's Congress regularly efforts to honor its commitments include "Convoy Campaign" for publishes the Laws of the People's protecting patent rights, the "Sword- Republic of China (English edition); China made extensive and net Campaign" for combating online the State Council's legislative affairs profound commitments on opening infringement and piracy, the organ regularly publishes the Laws up when entering the WTO. "Sweeping Campaign" for cracking and Regulations of the People's D o m e s t i c c o m p a n i e s w e r e down pornography and illegal Republic of China Governing confronted with international publication in the copyright field, the Foreign-Related Matters (Chinese and competition, and most industries "Network Sword Campaign" for combating IPR infringements and counterfeits and the "Sword Actions Box 1. The Automobile Industry’s Costly Adjustment on Quality Control" for cracking down counterfeits. Before WTO accession, China’s automobile industry lagged far behind developed members in terms of production scale, product quality, Attaining notable results in IPR manufacturing technology, R&D capacity, costs and prices, and brand protection. Since 2001, intellectual development. After accession, China faithfully fulfilled its commitments to property royalties paid by China to slash customs duties on automobiles. By July 1, 2006 when the transitional period ended, China had lowered the duties on imported automobiles from 100 foreign right holders has registered an to 25 percent. China’s auto industry was hit hard by cheaper imported cars and annual growth of 17 percent, reaching mounting competition. For example, China imported USD37.91 billion worth USD28.6 billion in 2017. In 2017, of passenger cars with engine displacement at 1.5-3L in 2017, compared to China received 1.382 million USD890 million in 2001. This represented an annual growth of 26.4 percent, invention patent applications, ranking with the auto trade deficit surging from USD870 million to USD34.35 billion. the first in the world for the seventh Facing the pressure, China’s auto industry took the initiative to carry out large- consecutive year. Nearly 10 percent of scale restructuring, opened wider to foreign capital, raised its levels of the applicants were foreign entities technology, management and services amidst fierce competition, and steadily and individuals. Invention patent penetrated the global value chains. applications filed by foreign entities

8 News From China July 2018 China and World Trade faced great difficulties. Rising up to WTO to play a greater role in p a r t i c i p a t e d i n p l u r i l a t e r a l these challenges, Chinese companies economic globalization. liberalization initiatives and made took the initiative to promote important contributions to relevant structural readjustment, participated 1 . L i b e r a l i z i n g a n d talks. It accepted the Information in the global value chains and facilitating trade and investment Technology Agreement (ITA) upon sign ifica n tly in crea sed th eir accession, subsequently participated international competitiveness. Participating fully in the Doha in the negotiations to expand its Round negotiations. China has coverage, and encouraged relevant II. China Firmly Supports submitted or co-sponsored more than parties to reach agreement on the Multilateral Trading System 100 negotiation proposals, helped e l i m i n a t i n g t a r i f f s o f 2 0 1 secure agreement on trade facilitation information technology products. As The multilateral trading system and export competition in agricultural one of the initiators of the with the WTO at its core is the products, and promoted the negotiations on the Environment cornerstone of international trade, continuous improvement of the Goods Agreement, China always and has been playing a pivotal role in multilateral trading system. In 2015, participated in relevant discussions in promoting global trade and building China became the 16th WTO a co n s tr u ctive m a n n er, a n d an open world economy. Since its m e m b e r t o r a t i f y t h e Tr a d e contributed to the important accession to the WTO, China has Facilitation Agreement (TFA). consensus reached at the G20 firmly supported the multilateral During its G20 presidency in 2016, Summit in . In 2007, China trading system, participated in all China encouraged a number of started the negotiation on its aspects of WTO work. It called upon countries to complete their domestic accession to the Agreement on the WTO to focus more on the ratification procedures of the TFA, Government Procurement and has concerns of developing members, prompting the agreement's entry into been making great efforts ever since. o p p o s e d u n i l a t e r a l i s m a n d effect at an early date. protectionism, upheld the authority M o b i l i z i n g s u p p o r t f o r and efficacy of the multilateral trading Promoting plurilateral trade discussing new issues in the WTO. system, and made concerted efforts liberalization. As a developing China has encouraged the WTO to with other members in supporting the c o u n t r y, C h i n a h a s a c t ive l y respond to and discuss new topics of

News From China July 2018 9 China and World Trade general interest to the members such force of the Agreement. 3. Fully participating in trade as investment facilitation, micro, small policy review and medium-sized enterprises 2. Safeguarding the dispute (MSMEs), and e-commerce. China settlement mechanism Attaching great importance to initiated "Friends of Investment trade policy monitoring by other Facilitation for Development Safeguarding the effective WTO members. The WTO trade (FIFD)" and sponsored the Joint operation of the dispute settlement policy review (TPR) mechanism is Ministerial Statement on Investment mechanism. The WTO dispute e f f e c t i v e i n e n h a n c i n g t h e Facilitation for Development signed settlement mechanism has played a transparency of the multilateral by over 70 members. China joined the vital role in maintaining the trading system. China places great "Friends of Micro, Small and predictability of international trade emphasis on the TPR process. Medium-sized Enterprises", and and the stability of the multilateral Having undergone six TPRs on itself, shared with other members its trading system. China has actively China is preparing for the seventh proposals that support MSMEs. As an participated in the negotiations on one in July 2018. In an open and frank advocate of multilateral discussions improving the Understanding on manner, China has briefed the WTO on e-commerce in the WTO, China Rules and Procedures Governing the membership on its macro-economic, joined "Friends of E-commerce for Settlement of Disputes and supports trade and investment policies, and Development (FED)", shared its the independence and impartiality of listened attentively to their comments experiences and helped other the WTO Appellate Body. Despite the and suggestions on China's reform developing members benefit from e- attempt of certain WTO member to and opening-up. Other WTO commerce. obstr uct the appointment of members applaud China's active members of the Appellate Body, participation and regard China as an Faithfully implementing the China joined more than 60 members impressive example in reinforcing the Trade Facilitation Agreement. As a in submitting a proposal on starting r o l e o f T P R i n m o n i t o r i n g developing member, China has the selection process at the earliest commitments, ensuring compliance a c t i v e l y p r o m o t e d t h e possible date. and enhancing openness. implementation of TFA. It has set up the National Committee on Trade Properly handling trade disputes Urging other WTO members to Facilitation to coordinate the efforts with other WTO members. China a b i d e b y m u l t i l a t e r a l t r a d e of relevant government agencies to supports WTO members to solve agreements. Since its accession to the enhance trade facilitation. By 2017, their trade disputes within the WTO WTO, China has participated in China's provinces (as well as dispute settlement mechanism. By nearly 300 TPRs on other members. a u t o n o m o u s r e g i o n s a n d April 2018, China had brought 17 It raised thousands of written municipalities directly under the disputes to the WTO, of which 8 had questions and trade concerns to the central g over nment) had all been concluded. Meanwhile, China members under review, urged them established a joint committee had been complained against in 27 to abide by the WTO rules and their mechanism for trade facilitation in disputes, of which 23 had been commitments, and played a positive their respective jurisdictions. concluded. By lodging complaints in r o l e i n s a f e g u a r d i n g a n d R e g a r d i n g C h i n a ' s T F A the WTO, China redressed other strengthening the TPR mechanism. commitments, 94.5 percent of all members' violation of obligations commitments fall into Category A under the covered agreements, and 4. Vigorously supporting the (immediately implemented upon defended its own trade interests as integ ration of developing entry into force of the TFA), and only well as the authority of WTO rules. members into the multilateral four items belong to Category B China also actively defended the cases trading system (implemented after a transitional against it, respected the WTO rulings, period following the TFA's entry into and made adjustments to its measures Supporting the WTO to focus on force). China will honor its promise according to WTO rules. Up to now, development. An impor tant and implement all the Category B none of the complainants has objective of the WTO is to ensure measures following a transitional requested for retaliation against that developing members, especially period of three years after entry into China. least-developed country members,

10 News From China July 2018 China and World Trade benefit from international trade and Unilateralism and protectionism opposition to unilateralism and boost their economic growth. As the run counter to the fundamental protectionism. largest developing country, China principles of the WTO. The understands the difficulties of multilateral trading system is a historic III. China's Significant developing members to benefit from choice that follows the trend of global Contribution to the World After the global value chains and participate economic development. The WTO Accession to the WTO in international economic and trade advocates the principles of rules, governance. China worked hard to openness, transparency, inclusiveness China steadfastly pursues a make trade an enabler of the 2030 and non-discrimination, and it will mutually beneficial opening-up A g e n d a f o r S u s t a i n a b l e remain the main channel to address strateg y, upholds the WTO's Development. global trade issues. China explicitly principle of free trade, and has lived Providing pragmatic and effective o p p o s e s u n i l a t e r a l i s m a n d up to its responsibilities as a major suppor t to other developing protectionism. Unilateralism goes country in the process of opening- members. China has reinforced its aid against the law of the market and up. From its WTO accession in 2001 to other developing members, international rules, causes injury to to the Belt and Road Initiative in especially least-developed country others but ends up defeating oneself. 2013, China has embraced the world members, to bridge the South-North Pursuing protectionism is like locking with open arms, made a significant development gap. By March 2018, it oneself in a dark room. While wind c o n t r i b u t i o n t o p r o m o t i n g had accorded zero tariff treatment on and rain may be kept outside, that dark international trade and increasing 97 percent of all tariff lines to 36 room will also block light and air. Only global wellbeing, and become a key least-developed countries (LDCs) through equal consultation and joint anchor and driver for the world that have diplomatic relations with efforts can win-win results be economy. China and completed exchange of achieved for all. notes. Responding to the "Aid for 1. Boosting world economic Tr a d e " i n i t i a t ive, C h i n a h a s Pursuing free trade through recovery and growth contributed multilateral and bilateral p l a t f o r m s f o r m u l t i l a t e r a l resources to help other developing cooperation. China advocates Since its accession to the WTO, members, especially least-developed s o l v i n g i n t e r n a t i o n a l t r a d e China has accelerated its reform and country members, with infrastructure problems through cooperation, opening-up process and economic construction, professionals training, dialogue and consultation on an growth. China’s development is a productivity improvement, as well as equal footing. During the 22nd forceful driver of global economic trade and investment development. It A P E C E c o n o m i c L e a d e r s ' growth. has donated USD1 million to the Meeting, the G20 Hangzhou WTO Trade Facilitation Agreement Summit, and the BRICS In 2016, China’s GDP accounted Facility to assist the implementation Summit, all hosted by China, the for 14.8 percent of the world total, up of the TFA. T he LDCs and country increased coordination by 10.7 percentage points over 2001, Accessions Program, established by with all parties concerned, and calculated at exchange rates. Since China in 2011, has helped six LDCs secured statements on opposing 2002, China’s contribution to global accede to the WTO. Since 2017, China t r a d e p r o t e c t i o n i s m i n t h e economic growth has approached 30 has strengthened cooperation with outcome documents of these percent on average. The Chinese the WTO and other international summits. When attending the Belt economy has become a major engine organizations under the South-South and Road Forum for International for global economic recovery and Cooperation Assistance Fund, and Cooperation, the Boao Forum for growth. carried out cooperative projects in Asia, and the World Economic "Aid for Trade" to help other Forum, Chinese leaders repeatedly China has quickened its pace developing members benefit from expressed their firm support for i n p r o m o t i n g n e w global value chains. the multilateral trading system and industrialization, IT application, an open world economy. In the urbanization, and agricultural 5 . F i r m l y o p p o s i n g W T O, t h e v a s t m a j o r i t y o f modernization, created enormous unilateralism and protectionism m e m b e r s e c h o e d C h i n a ' s opportunities for consumption

News From China July 2018 11 China and World Trade and investment, and generated partner of more than 120 countries percent on yearly basis, of which more jobs for the world. According and regions. China’s exports have imports stood at RMB56.59 billion, to a repor t released by the p r ov i d e d h i g h - q u a l i t y a n d up by 120 percent compared with the International Labor Organization, i n e x p e n s i v e p r o d u c t s t o previous year. ÒEffects of China on the Quantity businesses and people around the and Quality of Jobs in Latin world. From 2001 to 2017, China’s 3. Two-way investment America and the CaribbeanÓ, imports increased by an annual benefiting all countries China created 1.8 million jobs for average of 13.5 percent, 6.9 Latin America and the Caribbean percentage points higher than the China has been promoting the region from 1990 to 2016. global average; and China has establishment of a fair, equitable and become the world’s second largest transparent system of international China’s rapid development has importer. Since 2009, China has trade and investment rules to boost made tremendous contributions to been the largest export market for the orderly flow of production the cause of global poverty the LDCs, and absorbed 20 factors, efficient resources allocation reduction. Over the past 40 years percent of their exports. and full market integration. of reform and opening-up, the Chinese people have emerged China’s ser vices imports China has proactively attracted from scarcity to abundance and increased from USD39.3 billion in foreign institutions and individuals to f r o m p ove r t y t o m o d e r a t e 2001 to USD467.6 billion in 2017, invest and develop in China. Since prosperity. According to current up by an annual average of 16.7 1992, China has consistently topped UN standards, more than 700 percent, and accounting for nearly the list of FDI recipients among million Chinese people have been 10 percent of the world total. Since developing countries for 26 years lifted out of poverty, accounting 2013, China has been the world’s consecutively. After China's for more than 70% of the global second largest service importer, accession to the WTO, its FDI total over the same period. This making significant contributions increased from USD46.88 billion in represents the largest contribution to stimulating consumption, 2001 to USD136.32 billion in 2017, to poverty reduction in the world. creating jobs and boosting up by an annual average of 6.9 economic growth in the exporting percent. FIEs have shared the 2. Foreign trade development countries. Taking tourism services benefits of China's economic benefiting the world as an example, China has been the development, while helping improve world’s largest source of outbound the quality and performance of Since China’s entry into the tourists for many years in a row. In China's economy. According to the WTO, China’s foreign trade has 2017, outbound tourist trips made "2018 China Business Climate Survey m a i n t a i n e d s u s t a i n e d by Chinese citizens exceeded 130 Report" by the American Chamber development, benefiting more million person-times, generating of Commerce in China (AmCham than 1.3 billion Chinese and other USD115.29 billion of overseas China), nearly 60 percent of the peoples across the world. tourism spending. interviewed enterprises ranked China as a top three investment priority; C o n f r o n t e d w i t h China’s innovation in trade some 74 percent of the AmCham unprecedented difficulties and models has also given new impetus China member enterprises plan to challenges including the global to world trade growth. Cross- expand their investments in China in financial crisis in 2008, China has border e-commerce and other new 2018, the highest in recent years, and taken effective measures to types and modes of foreign trade one third of the interviewed stabilize and revitalize its foreign have flourished in China, providing an enterprises plan to increase their t r a d e . A c c o r d i n g t o W TO ever-expanding market to its trading investments in China by over 10 statistics, China’s impor ts partners. In 2017, the value of percent. According to the "Business accounted for 10.2 percent of the imported and exported goods in Confidence Survey 2018" by the world total merchandise import in cross-border e-commerce checked European Union Chamber of 2017, and its exports 12.8 percent, and released by China Customs Commerce in China, more than half making China a major trade totaled RMB90.24 billion, up by 80.6 of its member enterprises plan to

12 News From China July 2018 China and World Trade expand their presence in China. In building of a community with a years, China is expected to import 2017, newly founded FIEs in China shared future for mankind. USD24 trillion worth of goods. The reached 35,652, registering an increase CIIE will provide new export of 27.8 percent. Since 2013, more than 80 opportunities for the world, build a c o u n t r i e s a n d i n t e r n a t i o n a l new platform for other countries and China's outward investment o r g a n i z a t i o n s h a v e s i g n e d regions to share China's development cooperation has developed in a cooperation agreements with China. dividends, and bring more dynamism sustained, sound, and orderly way. In T h e i n - d e p t h a n d p r a c t i c a l to world economic growth. terms of annual flow of outward cooperation between China and direct investment (ODI), China's relevant countries has achieved I V. C h i n a I s A c t ive l y world ranking rose from the 26th fruitful results. From 2013 to 2017, Advancing Opening-Up to a place after its accession to the WTO the total value of China's trade with Higher Level to the third in 2017. China's outward other Belt and Road countries i nve s t m e n t c o o p e r a t i o n h a s exceeded USD5 trillion, and total F u l f i l l i n g C h i n a ' s W T O accelerated technological progress in investment by Chinese enterprises in commitments has never been the end the host countries, advanced their these countries exceeded USD70 point of its opening-up. In the face economic development, improved billion. By the end of 2017, Chinese of the overwhelming trend of their people's well-being and created enterprises had set up 75 overseas economic globalization and its many jobs. economic and trade cooperation winding path, China keeps pace with zones in relevant countries, the times, takes firm steps to expand 4. Providing public goods to contributed more than USD1.6 opening-up, and makes continuous the world billion taxes to the host countries and efforts to open up in a more created 220,000 local jobs. Within comprehensive, profound and China receives support from the three years starting from 2018, China diversified way, with a view to international community in its own will provide RMB60 billion worth of achieving greater mutual benefit and development process and stands aid to the developing countries and win-win outcomes. ready to provide more public goods to i n t e r n a t i o n a l o r g a n i z a t i o n s the world. China is committed to participating in the Belt and Road 1. Promoting balanced building an open platform of Initiative, with a view to developing development of trade cooperation, upholding and growing more projects to improve people's an open world economy, and working lives. China pursues a trade strategy of together with other countries to build m u t u a l b e n e f i t , w i n - w i n , a broad community of shared Hosting the China International diversification and balanced interests. Import Expo. Initiated by China, the development. It endeavors to raise China International Import Expo the quality and added-value of its Proposing the Belt and Road (CIIE) will bring together multiple exports, proactively increase imports, Initiative. In the face of difficulties in international organizations and more and better integrate into the global world economic development, China than 100 countries. It is an value chains. China never deliberately put forward the Belt and Road international public product that pursues trade surplus in goods. At the Initiative in 2013. While the proposal promotes inclusive and mutually same time, China takes an objective wa s i n i t i a t e d by C h i n a , t h e beneficial development around the view towards existing trade deficit in opportunities and achievements globe. The inaugural session of CIIE ser vices. The country always belong to the world. The Belt and will be held in November 2018. Road Initiative plays an important role Hosting the CIIE is an important welcomes imports that diversify in promoting in-depth cooperation decision made by China to promote a market supply, improve people's and common development between new round of high-level opening-up, quality of life, and upgrade its countries and regions, upholding and a major policy measure of China to industrial structure. In recent years, growing an open world economy, further open its market to the world, on top of its commitments to the making economic globalization open, and a concrete action by China to WTO, China has self-initiated inclusive, balanced, win-win and support economic globalization and significant reductions to import beneficial to all and advancing the trade liberalization. In the coming 15 tariffs on an interim basis for multiple

News From China July 2018 13 China and World Trade times. According to the WTO, China's trade-weighted average import tariff Box 2. China Takes Concrete Action to Expand Imports rate had fallen to 4.4 percent in 2015, At the Boao Forum for Asia Annual Conference held in April 2018, China only 1.5 to 2 percentage points higher announced plans to increase imports. It has since taken effective measures to put than those of developed economies its plans into action.From May 1, 2018, China was to eliminate import tariffs on all such as the US and the EU. By the end common drugs including cancer drugs, alkaloid-based drugs that can treat cancer, of 2017, China had reduced tariffs on and imported traditional Chinese medicine. All imported cancer drugs are now exempted from tariffs.From July 1, 2018, China is to reduce the most-favored- more than 900 tariff lines. At the 2018 nation (MFN) tariffs for automobiles from 25 percent and 20 percent to 15 Boao Forum for Asia Annual percent, and for auto parts from 25 percent to 6 percent. As a result, China’s Conference, China announced plans average MFN rates will have fallen to 13.8 percent for automobiles and 6 percent to further reduce import tariffs and to for auto parts.From July 1, 2018, China is to cut MFN tariffs for 1,449 consumer import more high-quality, distinctive products from an average MFN rate of 15.7 percent to 6.9 percent, representing an average reduction of 55.9 percent. The country will further increase imports of products that meet the strong demand goods and services to meet the rising needs of its consumers and to enhance the of the Chinese people. quality of its economic development. This will also boost economic growth and employment in other countries and regions.The aforementioned measures for 2. Facilitating international reducing tariffs and expanding imports will provide abundant supplies to meet trade diverse domestic demand and promote China’s supply-side structural reform and industrial restructuring and upgrading. China's efforts to implement the WTO Trade Facilitation Agreement, business-friendly environment at the f o r f o r e i g n i nve s t m e n t wa s which entered into force in February port. completed and the "Notice of the 2017, have resulted in impressive State Council on Measures for Using improvement in China's trade 3. Substantially widening Foreign Investment Actively and facilitation. The average time for m a r ke t a c c e s s f o r f o r e i g n Effectively to Promote High-Quality customs clearance has been reduced investment Economic Development" was issued to less than 20 hours for imports and to further widen market access less than two hours for exports. China China has adopted a foreign considerably. China is making efforts has accelerated the establishment of a investment administration model of to steadily liberalize its financial single window for international trade. pre-establishment national treatment sector, constantly open up the By the end of 2017, the China plus negative list. This move marks an services industry, and deepen the International Trade Single Window institutional reform in response to opening-up of agricultural, mining had been connected to 11 authorities new developments in economic and manufacturing sectors. and agencies responsible for border globalization and changes in control and covered basically all major international rules for investment. In As regards the shipbuilding import and export procedures. This September 2016, the Standing industry, China will lift foreign equity one-stop system enables traders to use Committee of the National People's caps for companies engaged in the a single entry point to declare freight Cong ress amended four laws design, manufacturing and repair of and taxes with a single submission of including the Law on Foreign vessels in 2018. Moreover, China will documents, and track the results after Invested Enterprises. For those lift foreign equity caps on airplane a single joint inspection by the foreign-invested enterprises not manufacturing of trunk airliners, participating authorities. It has subject to the special administrative regional jets, utility aircrafts, accelerated the modernization of measures on access to foreign helicopters, drones and lighter-than- China's port management. China will investment (the negative list), their air aircrafts. In the automobile further optimize supervision and establishment and changes are now industry, China will remove foreign management approaches, reform port administered by a "filing for record" equity caps on manufacturing of administration regime and streamline approach instead of the examination special-purpose vehicles and new- procedures and reduce costs for and approval system. In the first half energy vehicles, and phase out those import and export, to create a more of 2018, revision of the negative list on all automotive ventures over the

14 News From China July 2018 China and World Trade next five years. help attract more foreign investment registration. The time for business into China and ensure its effective establishment has been shortened by 4. Creating a more attractive utilization. at least one third. In order to alleviate e n v i r o n m e n t f o r f o r e i g n the burden on businesses, China is investment By March 2018, all items for non- advancing the reform of the negative administrative license approval had list for market access, promoting the China makes efforts to create a been cancelled, and items for concept of "everything that is not favorable and orderly investment administrative approval had decreased f o r b i d d e n i s a l l o w e d " , a n d environment, ease market access for by 44 percent as compared to March reinforcing the impartiality of law foreign investment, further simplify 2013. The number of investment enforcement. the administrative procedures on projects by enterprises subject to access to foreign investment, build v e r i f i c a t i o n o f t h e c e n t r a l China will continue with the pilot free-trade zones (FTZs) with government had been reduced by 90 reform to streamline administration, high standards, and better promote percent. China has comprehensively lower taxes, and reduce fees. China and protect foreign investment. China reformed its systems for business will further align its business works to improve an investment registration and registered capital, environment with international climate that conforms to international rolled out the subscribed capital economic and trade rules, enhance rules, facilitates foreign investment registration system, and revoked 87 policy transparency, strengthen the and is based on the rule of law, and to percent of the items subject to protection of property rights, make its market more transparent and examination and approval preceding advance the rule of law, encourage better regulated. These efforts will the industrial and commercial competition and oppose monopoly. The enactment of the Law on Foreign Investment will be expedited Box 3. China Further Opens up Its Financial Sector to Foreign Investment to build a legal system for foreign Since its accession to the WTO, China has advanced reform of its financial investment that meets the needs of system and pushed the opening of its financial market into further depth and reform and opening-up in the new width.From the end of 2017, China has announced a series of new measures to era, elevate opening-up to a higher open up its financial sector, to lower the threshold for market access and expand level, push for deeper reform in the the business scope of foreign investors, including: • Lifting market access restrictions on bank card clearing institutions and non- foreign investment administration bank capayment institutions, easing restrictions on credit rating services by system, and protect the legitimate foreign financial services companies, and granting national treatment to foreign rights and interests of foreign credit information service suppliers; investment and foreign investors. • Removing foreign equity caps on banks and financial asset management The threshold will be lowered for companies, and allowing foreign banks to set up both branches and subsidiaries in China; foreign talents to work and start their • Canceling the requirement that foreign insurers must have a representative own businesses in China. In addition, office in China for two years before they can establish commercial presence, C h i n a w i l l i m p r ove va r i o u s allowing eligible overseas investors to engage in insurance agency and insurance development zones, build the pilot assessment businesses, and lifting restrictions on the business scope of foreign invested insurance brokerage companies; FTZs with high standard and good • Raising foreign equity cap to 51 percent in securities, fund management, futures, quality, and explore the construction and life insurance companies, and removing the limitations after three years; of free-trade ports with Chinese • Encouraging foreign investment in financial services in the banking sector, characteristics. including trust, financial leasing, auto finance, currency brokerage, and consumer finance; and • Applying no cap on foreign equity for new financial asset investment companies 5. Regulating outward and wealth management companies sponsored and incorporated by commercial investment banks.These measures will open up China’s financial sector far beyond China’s commitments under the WTO. In the future, China will take further steps to China encourages its enterprises open up its financial industry and develop a more open financial system that is to abide by local laws, fulfill corporate internationally competitive and commensurate with China’s economic scale and influence. social responsibilities and observe

News From China July 2018 15 China and World Trade business principles and international negotiating with relevant parties the market economy system, and practices when they do business in host Regional Comprehensive Economic stimulate the vitality of various countries and conduct outward Partnership for its early conclusion market entities. investment cooperation. China will a n d i m p l e m e n t a t i o n , a n d i s continue to promote the sustainable, accelerating the building of Free China will take innovation as the reasonable, orderly and sound Trade Area of Asia-Pacific and East p r i m a r y d r i v i n g f o r c e f o r development of outward investment, Asia Economic Community. With all development. China will adopt a and effectively prevent risks of all these efforts, China will build a high more open attitude, strengthen the kinds. Meanwhile, in order to create a standard network of free trade areas, protection of innovation and more equitable, transparent and focusing on the neighboring areas, intellectual property rights, and predictable environment for foreign radiating across the Belt and Road and enhance international exchanges and investment, China calls on host open to the world. cooperation. These efforts will countries to refrain from abusing e n s u r e t h a t t e c h n o l o g i c a l security review or adopting other Conclusion development and innovation benefit restrictive practices to impose excessive not only China, but also the world, limitations on foreign investment. The world is undergoing a new and its convenience readily accessible round of major development, great to more and more people. 6. Advancing the Free Trade change and profound readjustment. Area Strategy The mankind still faces growing China calls on all countries to uncertainties and destabilizing jointly shoulder the responsibilities The multilateral trading system factors. Surging tides of anti- of our times and believes that all and regional trade arrangement are globalization in recent years, coupled countries should have equal access to the two wheels driving economic with rising protectionism and development opportunities. As the globalization forward. China upholds unilateralism, have posed severe largest developing country in the the multilateral trading system and challenges to the multilateral trading world, China looks forward to further promotes free trade arrangements. By system with the WTO at its core. cooperation and communication May 2018, China had signed 16 free with other countries to jointly trade agreements (FTA) with 24 Economic globalization has respond to global issues that emerge countries and regions. In 2017, trade powered global growth and is an in the process of globalization, and to between China and its FTA partners irreversible trend of our times. China b u i l d i n g a g l o b a l e c o n o m i c (excluding Hong Kong Special and the multilateral trading system governance system based on equality, Administrative Region, Macao Special stand together through thick and thin. equity and win-win cooperation. Administrative Region, and Taiwan China will continue to fulfill its Province) accounted for 25.9 percent commitments, comply with rules, China commits itself to opening of China's total foreign trade. In those a c t i v e l y p a r t i c i p a t e i n t h e up wider and deeper to promote free trade agreements, basically 90 improvement of the multilateral common development across the percent of imported products enjoy trading system, and give firm support world, providing other countries with d u t y f r e e t r e a t m e n t , a n d to the WTO in playing a greater role in more opportunities to share the approximately 120 service sectors global economic governance. benefits of China's development. have been opened to foreign China is willing to work hand-in-hand suppliers, compared to 100 service China's economy has been with its global trading partners to sectors in China's commitments to the transitioning from rapid growth to make economic globalization more WTO at the time when China joined high-quality development. In this open, inclusive, balanced and win-win the organization. historic process, China will pursue with benefits to all so that different with fir mness the vision of countries, different social strata and C o m m i t t e d t o a d va n c i n g innovative, coordinated, green, and different groups of people all share in e c o n o m i c g l o b a l i z a t i o n a n d open development that is for t h e b e n e f i t s o f e c o n o m i c safeguarding free trade, China is everyone, improve the socialist globalization.

16 News From China July 2018 China and World Trade STATEMENT BY THE MINISTRY OF COMMERCE

Regarding the Statement by the success of the Chinese economy has products which it has comparative US Trade Representative on Section never been a success of practicing advantage. Second, the so-called 301 Action released on July 10th, the mercantilism outside China or the "theft of intellectual property". The Ministry of Commerce of the success of practicing the so-called Chinese government already put in People's Republic of China makes the state capitalism. Rather it is a success place a full-fledged legal system to following statement: of the commitment to market- protect intellectual property rights, oriented reform and continuous allowed judicial system to play a I. The slander of the US against opening-up. First, China-US trade leading role in IPR protection, and China about gaining extra advantage imbalance. The US side claims that it promoted the establishment of IPR through unfair trade practice is a has massive trade deficit with China, courts and dedicated IPR tribunals. distortion of facts and hence is but its number is over estimated, and In 2017, China paid USD 28.6 billion groundless. For the purpose of the main reason for the deficit does worth of IPR royalty, a 15-fold meeting its political need at home and not lie on the Chinese side. Rather it is increase from 2001 when China containing China, the US side because saving rate in the US remains joined the World Trade Organization. produced a whole set of policy logics low, the US dollar ser ves as Third, the so-call "forced technology that distorted the truth of China-US international reserve currency, and the transfer". The Chinese government economic and trade relations. As a two countries differ in industrial did not make this kind of request to matter of fact, underlying problems in competitiveness and international foreign companies, and cooperation the American economy and society division of labor. Besides, the US, due between Chinese and foreign are purely caused by domestic, to its cold-war mentality, imposes companies in technology and other structural reasons in the US. The restrictions on the export of hi-tech economic and trade field is contract

News From China July 2018 17 China and World Trade behavior purely based on voluntary c o u n t e r m e a s u r e s h a v e n o defending the principles of free trade principle. Both sides have reaped huge international legal basis, but in fact it is and the multilateral trading system, benefit from the cooperation over the the US unilateral initiation of a trade and defending the common interest years. Fourth, "Made in China 2025" war that has no international legal of the countries across the world. and other industrial policies. Under basis at all. In August 2017, the US The Chinese government has already market economy conditions, these unilaterally launched the Section 301 taken the unilateralist actions of the policies implemented by the Chinese investigation against China despite US to the Dispute Settlement government are guiding documents in opposition from China and the Mechanism of the WTO. The nature, and are open to all foreign- international community. It then Chinese government's measures, funded companies. The irony is that released a Section 301 investigation both bilateral and multilateral, to the country providing massive trade report in March 2018 and imposed respond to the emergent situations s u b s i d y i n a g r i c u l t u r e a n d 25% tariff on US$34 billion Chinese resulting from the US unilateral manufacture happens to be the exports to the US on July 6th in actions are in full compliance with the United States itself. disregard of 91% opposition in the fundamental spirit and principles of comments it received. On July 11th, international law. II. The United States' accusations the US further escalated the situation that China neglects differences in by announcing a tariff list of Chinese V. The US is not only launching a trade and has not taken active products worth US$200 billion. trade war with China, but also with measures are not true. The United Domestically, the 301 investigation the whole world, dragging the world States claims that it has "patiently runs counter to the US President's economy into danger. When the US urged China" and that China ignored Statement of Administrative Action willfully exits from groups based on the US request, but the truth is that a p p r o v e d b y C o n g r e s s ; its own interests under the pretext of trade differences have always been an internationally, it has violated its "American First", it becomes an important issue to China, who has commitment made in the resolution enemy to all. It not only initiates the been promoting the resolution of of the WTO trade dispute with the Section 301 investigation against differences through dialogue and European Community in 1998. The China based on IPR, but also consultations with maximum sincerity tariffs are typical unilateralism, l a u n c h e s t h e S e c t i o n 2 3 2 and patience, with the hope to protect protectionism and trade bullying. investigation against key global China-US trade and economic They are a clear violation of the basic economies in the name of national cooperation, satisfy the growing WTO principle of most-favored- security and creates trade frictions in needs of the Chinese people for a nation treatment as well as the basic steel, aluminum, automobile and better life, and promote quality spirit and principles of international other key industries. At present, many growth of the Chinese economy. law. WTO members have already taking From February to June this year alone, countermeasures against the US and China engaged in four rounds of IV. That China was forced to take requesting consultations with the US high-level economic talks with the US, counteractions is an inevitable choice under the WTO dispute settlement and has announced the China-US to defend national interest and global mechanism. It is fair to say that this Joint Statement with important interest, and is perfectly rightful, largest trade war in the economic consensus reached on strengthening reasonable and lawful. In facing history waged by the US is not a trade trade and economic cooperation and repeated threats of a trade war by the war between the US and China, but a avoiding a trade war. But due to US, the Chinese g over nment global trade war. Such US practices domestic politics, the US has gone repeatedly stated its principle position will drag the world economy into the back on its words, brazenly of "not wanting a trade war, not being "cold war trap", "recession trap", abandoned the bilateral consensus, afraid of one, and having to fight one "anti-contract trap" and "the trap of and insisted on fighting a trade war when necessary". The Chinese side uncertainty", seriously worsen global with China. China has done its utmost insisted on not firing the first shot, economic and trade environment, to prevent the escalation of trade and was forced into taking reciprocal destroy global industrial chain and frictions. The United States is fully countermeasures after the U.S. first value chain, hinder global economy responsible for the current situation. started the trade war. China did this recovery, trigger global market entirely for defending its national fluctuations and hurt the interests of III. The US accused China's dignity and people's interests, numerous multinationals and average

18 News From China July 2018 China and World Trade customers in the world. opening up. Its high speed economic to the major role of entrepreneurs, growth in the past four decades encourage competition and oppose VI. China will continue to firmly hinged upon reform and opening up, monopoly, continue with opening up, push ahead with reform and opening- and so will high quality growth in the create an attractive business climate, up according to the plans and pace future. No matter how things change provide solid support for economic that are set, and work with the rest of outside, the government of China will globalization, safeguard international the world to firmly uphold free trade stay determined to let the market play trade and economic system, and grow a n d t h e mu l t i l a t e r a l t r a d i n g a decisive role in resource allocation, and prosper with all countries in the system.This year marks the 40th p r o t e c t p r o p e r t y r i g h t s a n d world that seek progress. anniversary of China's reform and intellectual property rights, give play CHINA REFUTES US ACCUSATIONS OF VIOLATING WTO RULES

Beijing, July 17 (Xinhua) -- China made significant contributions to the China of violating WTO rules, and on Tuesday refuted U.S. accusations world economy by paying great used these to justify implementing that it has violated WTO rules, saying efforts and costs since it joined the unilateral trade measures against it would continue to abide by them, WTO 17 years ago," Foreign Ministry China. and calling on the United States to spokesperson Hua Chunying told a respect and obey WTO rules. routine press briefing. Hua said that since 2002, China's annual average contribution to world "China has always fulfilled its Recently, the United States has economic growth had been close to obligations, kept its promises and issued multiple reports accusing 30 percent.

News From China July 2018 19 China and World Trade

"If China hadn't abided by WTO terms of tax reductions on goods, commitments have gained worldwide rules, why would it have chosen to join opening of trade in services, and non- recognition. the WTO?" she said. tariff measures including import quotas," she said. According to Hua, the United The Chinese government decided States has consecutively released 16 to join the organization because it "If China hadn't abided by WTO reports on China's fulfillment of its firmly believes integration into rules, why would it have always commitments to the WTO, none of economic globalization is in line with safeguarded the core values and basic which have suggested any violation the historical trend and that principles of the WTO?" she of rules except for one released this promoting free, open trade leads to continued. year. mutually beneficial and win-win r e s u l t s , a c c o r d i n g t o t h e China firmly believes that the "The United States not only puts spokesperson. authority and effectiveness of the its own interests above global multilateral trading system can be interests, but also places its domestic "If China hadn't abided by WTO protected only by adhering to the rules on top of international rules," rules, why would it have fulfilled the international rules in the spirit of she said. "None of the countries o b l i g a t i o n s o f j o i n i n g t h e contract, Hua said. within the WTO support the United organization?" she asked. States' unilateral actions." "China will never take unilateral Hua pointed out that China had measures easily or violate WTO "China will continue to abide by recently released a white paper, fundamental rules. When handling WTO rules. We hope the United "China and the World Trade key issues, it keeps its word and takes States respects and obeys WTO rules Organization." responsibility," the spokesperson said. with practical actions, and safeguards "Speaking with facts and figures, the multilateral trading system with the paper clearly shows that China has China's efforts in abiding by the the WTO as its core," Hua said. fully fulfilled its commitments in WTO r ules and fulfilling its UNITED WE PROSPER Mr Li Baijun, Economic and Commercial Counsellor of Chinese Embassy in India

Multilateral trading system, free trade, these words are seemingly far away from our daily live. Yet they have influence on every details of our work and consumption. We get use to enjoy high quality and inexpensive products from all over the world while exporting our competitive products overseas. Whether in Beijing, New Delhi, New York or London, we all have access to fresh imported fruits, affordable electronic products and fashionable clothes and jewelries. A hard-working engineer in Bangalore may be busy writing codes for US Silicon Valley companies while textile workers in Gujarat are working day and night to produce latest fashion clothing for Europeans.

20 News From China July 2018 China and World Trade

With these vibrant activities, free U.S. has decided to impose additional currencies and oil and other trade ensured by multilateral trading tariffs on various import goods. In commodities, but also undermine system is flourishing. Based on the March 2018, on national security Made in India initiative, and slow exchanges, ordinary people in grounds, U.S. has adopted tariffs of down the taking off of Indian developed countries have enjoyed 25% and 10% on import steel and Economy. As Minister of Commerce affordable and good quality products Aluminum products respectively. At and Industry of India, Mr. Suresh when the developed countries July 6th, the U.S. has imposed Prabhu puts, "The very existence of upgraded the industries. In the additional 25% tariffs on $34 billion WTO is now under threat. But, if meantime, the economies in the worth of Chinese goods. Moreover, there is no WTO, all countries will developing countries are booming U.S. threatens to consider imposing face problems. There will be chaos. while life expectancy, infant survival tariffs on another $500 billion worth rate, adult literacy rate have all gone up of Chinese goods. As one of the A t p r e s e n t , e c o n o m i c greatly. Take India as an example, in countries enjoying surplus with the globalization experiences twists and the waves of globalization, the U.S., India has also become a victim of turns, and unilateralism and e c o n o m i c g r o w t h h a s b e e n the U.S. unilateral, protectionist trade protectionism are on the rise. China impressive, and the size of economy practices. Extra tariffs have been and India have continuously has kept expanding. Moreover, the imposed to Indian steel and aluminum promoted and defended the number of people living under to the U.S. as well. Moreover, with multilateral trading system. We have poverty line has reduced by 260 more and more stringent H1B visa the responsibility to ensure the million and the percentage had gone standard, fewer experts in India can smooth function of multilateral done from 45% in 1994 to 12.4% in work in the U.S. Oil import cost in trading system embodied in the 2015. India have been raised by the U.S. WTO and free trade. It is also in the sanctions on the other country as well. interest of our two countries to From General Agreement on defend multilateral trading system Tariffs and Trade (GATT) in 1948 to Regarding the U.S. violating and free trade. In President Xi Jinping WTO in 1995, the establishment of World Trade Organization rules and and Prime Minister Modi's meetings rules-based, transparent, non- igniting the largest trade war in in Wuhan and , the two discriminatory and open multilateral economic history, China has clearly leaders have agreed to promote the trading system embodied in the WTO expressed our stance. It's impolite not construction of an open world has taken difficult negotiation and to make a return for what one receives. economy, support the multilateral compromises. With countries all over To defend the nation's core interests trading system, and conduct more the world working together, the and the people's interests we are positive international cooperation to multilateral trading system have forced to fight back and impose jointly cope with global challenges. worked well for 70 years, resulting in counter tariffs on U.S. products with Recently, China has published the less trade barriers and fewer trade equal force and scale. Likewise, India White Paper "China and the World frictions. Like water and air, things has also decided to impose additional Trade Organization". In this white that we took for granted in our lives, tariffs on $240 million worth of paper, while looking back at our 17 having such trading system seems imports from the U.S., in retaliation years' development and progress natural. Only when we are at the risk against the tariffs imposed on Indian since joining WTO, we have further of losing such functioning multilateral steel and aluminum exporting to the expressed our determination in trading system and free trade, can we U.S. deepening reform and opening-up, truly understand how indispensable it supporting the improvement of is and what our lives would become There is an old Chinese proverb multilateral trading system, and without it. Rome wasn't built in a day, that, in the open sea, if the boat pushing forward the development of but can be destroyed in one day. To capsizes, no one is safe from global free trade. We look forward to tear down such delicate system, all you drowning. There are no winners in a working with India and building need is a disruptive player. trade war, only collateral damages. It c o n s e n s u s t o s u p p o r t t h e threatens global supply chains and development of multilateral trading Recently, we have witnessed the value chains, triggers global market system and free trade, and to make United States announcing the tariff turmoil and stalls the global economic the international political and recommendations under its Section recovery. This will not only disrupt economic order more just and 232 and Section 301 investigations. the environment for Indian economic equitable. Entirely based on domestic law, The development, resulting fluctuations in

News From China July 2018 21 China and World Trade CHINA’S COUNTERMEASURES IN THE TRADE WAR ARE JUSTIFIABLE, LEGITIMATE: EXPERTS By Du Haitao, Lin Lili (People's Daily), July 17, 2018

China's countermeasures in the firing the first shot, and was forced reciprocal countermeasures, which trade war are justifiable and legitimate, i n t o t a k i n g r e c i p r o c a l indicated its strong resolution to experts pointed out, believing that countermeasures after the US first oppose unilateralism, support the such response aims to safeguard started the trade war," China's multilateral trading system, and C h i n a ' s c o r e i n t e r e s t s a n d Ministry of Commerce stressed in its protect the authoritativeness and fundamental interests of its people, as recent statement. effectiveness of the system," said well as to protect the principle of free Zhang Yansheng, chief researcher trade and the multilateral trading China declares determination to w i t h t h e C h i n a C e n t e r f o r system. guard multilateral trading system International Economic Exchanges (CCIEC). "The Chinese side insisted on not "China was forced into taking

22 News From China July 2018 China and World Trade

China's countermeasures start global trade system, he warned. large, Chen called on the world to from its determination to safeguard its firmly oppose the bullying practices core national interests and the "Sustainable and win-win results of the US and protect the principle fundamental interests of its people, never come along with unilateral act of free trade and the multilateral Zhang said, adding that against the that goes against multilateral system trade system. backdrop of intertwined world or global governing principles," the economy, the US is simply adopting a researcher noted. China is the world's only country bullying practice with unilateralism that has established a whole industrial and protectionism by initiating the China's reciprocal counter- chain. It has a huge domestic market trade war. measures after the irrational move of and development potential, thus the US, as well as its complaint of such enjoying a larger elbow room when The US is seemingly trying to unilateral practice to the World Trade facing with external impacts, said Bai reduce trade deficits under the banner Organization (WTO) are totally in line Ming, deputy director of the of imbalanced trade, but it indeed with the fundamental principles and International Market Research hopes to comprehensively contain the spirit of the international law, he Institute under the Ministry of development of other countries, the stressed. Commerce. expert unmasked the veil of the US. C h i n a i s s u p p o r t e d b y "The US will finally expose its Statistics showed that nearly 60 international morality, Sun said, weaknesses and problems as time percent of the products on the $34 adding that the international society goes by, and the country will billion tariff list of the US are should work together to resolutely gradually get stung by China's produced by foreign enterprises in o p p o s e u n i l a t e r a l i s m a n d counter measures," Bai said, China, and a considerable part of protectionism. explaining that China has always been them comes from the US itself. a country that is able to bounce high An opener China will benefit when pressed by external forces. In light of this, by unilaterally world more initiating the trade war, the US side is China has already showcased its firing at the whole world as well as China will never back down from resolution to further open up, which itsel, said Zhang, explaining that such the trade war, said Chen Wenling, can be evidenced by the slew of new irrational act is extremely dangerous chief economist of the CCIEC. measures regarding opening up in and will lead to a lose-lose situation. just four days from June 26 to July 1. It will work with other countries The multilateralism, free trade to safeguard the global free trade The country also issued two new and rules-based order are pit against system, multilateral mechanism, and negative lists: one that applies to the unilateralism, protectionism and international rules, she noted, adding free trade zones and another for the power games, researcher Sun Jie from that the country will focus on its own rest of the country, largely lowering the Institute of World Economics and issues and firmly carry forward the market access. Politics under Chinese Academy of reform and opening up. Social Sciences pointed out. In addition, it rolled out new Chen remarked that the US' regulation for foreign enterprises Sun believes that the core of the denial of the globally accepted registration, allowing simultaneous trade war lies in the intention of the multilateral trading system is a willful o n l i n e d o c u m e n t a t i o n a n d U S t o a b a n d o n t h e e x i s t i n g violation of the international rules commercial registration for overseas multilateral trading system and and order, putting negative impacts companies coming to China. Besides, highlight the so-called fairness and on global trade system, as well as the it also substantially lowered the tariffs reciprocal opening in bilateral trade global industrial, supply and value of wholesale automobiles, auto parts, relations, so that it will be able to chains. cosmetics and aquatic products. increase tariffs on a unilateral basis. In a belief that such movement "A more open China will Such practice has brought huge of the US will not only hurt China, but definitely bring more opportunities impacts and destruction to the current also the US and the world economy at for the world," Bai noted.

News From China July 2018 23 China and World Trade US UNILATERALLY INITIATED A TRADE WAR WITHOUT ANY INTERNATIONAL LEGAL BASIS: EXPERT People’s Daily, July 16, 2018

In a statement issued on July 12, than arbitrarily adopting unilateralism basic WTO principle of most-favored- China's Ministry of Commerce and protectionism." Bai Ming said. nation treatment as well as the basic (MOC) pointed out that the United The Section 301 refers to an spirit and principles of international S t a t e s a c c u s e d C h i n a ' s investigation under Section 301 of the law. Also, the tariffs are typical countermeasures of having no US Trade Act of 1974, a law that unilateralism, protectionism and trade international legal basis, but in fact it is allows the US president to unilaterally bullying, said Wang Qijiang, the vice the U.S. unilateral initiation of a trade impose tariffs on another country. chairman of the China Law Society. war that has no international legal basis at all. Experts believe that the US As Chad Bown, a senior fellow at T h e U S h a s v i o l a t e d i t s approach is a unilateral approach t h e P e t e r s o n I n s t i t u t e f o r commitment to free trade and should p r o h i b i t e d b y t h e W T O ' s International Economics once put in be stopped jointly by relevant parties Understanding on Rules and a metaphor - The US government and led back to the right track of Procedures Governing the Settlement acted as police force (identifying the WTO principles. of Disputes (DSU), and violates the foreign g overnment's crime), most basic spirit and principles of the prosecutor (making the legal The US has totally turned its WTO. That China was forced to take arguments), jury (ruling on the back on the framework of global counteractions is an inevitable choice evidence), and judge (sentencing the multi-lateral trade, demanding only to defend national interests and global f o r e i g n e r t o U S r e t a l i a t o r y the one-side interest, which is not interests, and is perfectly rightful, punishment). only disobeying the principles of reasonable and lawful. global trade, but also unlikely to get In August 2017, the US launched the advantage. "The section 301 investigation the Section 301 investigation against was initiated, investigated, decided China despite opposition from China The "fair trade" that the US and executed by the United States and the international community. The claims is a clear "protectionism" itself and has a strong characteristic U S r e l e a s e d a S e c t i o n 3 0 1 under the name of fairness. of unilateralism, " said Bai Ming, investigation report in March 2018 deputy director of the MOC and imposed 25 percent tariffs on 34 That China was forced to take International Market Research billion U.S. dollars worth of Chinese counteractions is an inevitable choice Institute. Given that, the Section 301 exports to the US on July 6 in to defend national interests and global has been widely criticized ever since disregard of 91-percent opposition in interests, and is perfectly rightful, its enactment. the comments it received. On July 11, reasonable and lawful. It also the US further escalated the situation demonstrates China's resolution and "It is not surprising that the by announcing a tariff list of Chinese determination to protect the WTO economic and trade cooperation products worth 200 billion U.S. multi-lateral system and the between economic powers can be dollars. international law, said Zhang Monan, a frictional. The key is to adopt a researcher from the China Center for reasonable and legal solution, rather They are a clear violation of the International Economic Exchanges.

24 News From China July 2018 China-India Relations

China-India Relations SENIOR CHINESE OFFICIAL CALLS FOR BRICS COOPERATION IN GLOBAL GOVERNANCE

Durban, South Africa, June 30 Yang, also director of the Office The BRICS should also enhance (Xinhua) -- BRICS countries should of the Foreign Affairs Commission political and security cooperation and strengthen strategic mutual trust and of the CPC Central Committee, said safeguard the common interests of pragmatic cooperation to play a more BRICS countries play an important emerging market countries and constructive role in maintaining world role in maintaining world peace, developing nations, he added. peace and stability, a Chinese senior promoting common development official said here Friday. and enhancing global governance. Meanwhile, participants agreed that the BRICS countries should Speaking at the 8th meeting of BRICS is an acronym for the further enhance solidarity and BRICS High Representatives for grouping of the world's leading cooperation while sticking to Security Issues, Yang Jiechi, a emerging economies, namely Brazil, multilateralism so as to make positive member of the Political Bureau of Russia, India, China and South Africa. contributions to world peace, the Communist Party of China stability and development. (CPC) Central Committee, said that Yang said the BRICS should the world is witnessing some of the jointly stick to multilateralism, uphold During the meeting, Yang held most unprecedented changes in a the principles of the UN Charter and bilateral talks with delegation leaders century. seek a peaceful settlement to disputes. from the other BRICS countries.

News From China July 2018 25 China-India Relations

CHINA AND INDIA HOLD THE SECOND ROUND OF DIALOGUE ON MARITIME COOPERATION

26 News From China July 2018 China-India Relations

On July 13, 2018, the Second Sharma of India co-chaired the communication, expand practical Round of China-India Dialogue on dialogue. Both sides exchanged in- cooperation in such areas as naval Maritime Cooperation was held in d e p t h v i e w s o n m a r i t i m e exchanges, marine science and Beijing. Director-General of the development strategies, maritime technology and maritime search and Department of Asian Affairs of the security situation and China-India rescue, and keep coordination and Foreign Ministry Wu Jianghao and maritime cooperation and agreed to cooperation in multilateral affairs, so Joint Secretary for Disarmament and take the important consensus reached as to promote regional security and International Security Affairs at the by leaders of both countries as the common prosperity. Ministry of External Affairs Pankaj guidance to intensify policy CHINA ANNOUNCES TARIFF ADJUSTMENT UNDER APTA ARRANGEMENT Beijing, June 27 (Xinhua) -- China Pacific Trade Agreement (APTA). members in January 2017. will adjust tariffs on an array of imports from a number of Asia- After the adjustment, tariffs on In May 2001, China joined the Pacific countries from July 1, 2,323 categories of commodities such then Bangkok Agreement, whose according to the Ministry of Finance. as cer tain chemicals, optical name was changed to the APTA in components and television cameras N ove m b e r 2 0 0 5 . I t a i m s a t The adjustment, covering will be reduced, the ministry said. promoting economic and trade products under 8,549 tariff codes cooperation among its members made in Bangladesh, India, Laos, the The adjustment came after a new through the adoption of mutually Republic of Korea and Sri Lanka, was arrangement was reached during the beneficial trade liberalization part of the tariff concession fourth round of tariff concession measures. arrangement reached under the Asia- negotiations among the six APTA AIIB MEETING KICKS OFF WITH FOCUS ON PRIVATE SECTOR INVESTMENT IN INFRASTRUCTURE Mumbai, June 25 (Xinhua) -- The will see brainstorming sessions on At AIIB Governors' seminar third annual meeting of Asian how to mobilize finance for huge during the event on Monday, AIIB Infrastructure Investment Bank infrastructure needs in developing President Jin Liqun stressed the need (AIIB) kicked off in India's financial countries in Asia and beyond. to increase the private-sector hub Mumbai on Monday with the investment in financing the theme "Mobilizing Finance for Policy-makers, officials from infrastr ucture in developing Infrastructure: Innovation and AIIB members, and participants from countries of Asia. Collaboration." partner organizations, private sector and civil society organizations will "We are trying to work with the Over 3,000 delegates from over share their insights on addressing the private sector to do infrastructure 80 members as well as varied huge infrastructure-deficit in a projects and investments in other multinational organizations are sustainable, environment and society- productive sectors so that we don't attending the two-day event, which friendly manner. have to put pressure on the balance-

News From China July 2018 27 China-India Relations

sheet of the government," said Jin. that we are not just financers, we are On the sidelines of the AIIB problem solver for the government, meeting, an "India Infrastructure H e c a l l e d u p o n a l l t h e for the private sector," he said. Expo 2018" was also organized by governments in Asia in particular to the host country to highlight the clear hurdles in the way of private- At a media-briefing during the tremendous scope of building sector investment for building event, AIIB Vice President Danny infrastructure in India. infrastructure. Alexander also enumerated priorities and lending norms of the AIIB. While inaugurating the expo on He also hoped that the private "Lean, clean and green is the way we Sunday, India's Finance Minister sector will be more than willing to work. We invest in sustainability and Piyush Goyal welcomed AIIB guests pour money into infrastructure are guided by those priorities. Our from around the world. "We're projects if government clears bank is apolitical and all projects have extremely delighted at the progress practical hurdles in the way of to pass our test on sustainability and that the Bank has made," he said. investment. environment," he said. The indian minister has also He said that AIIB wants to work He also said that AIIB would lauded AIIB for its achievements in a as a bridge between private sector and consider investing in projects outside short time-span of three years. governments. Asia as long as they serve to benefit Asian regions too. "The Asian Infrastructure Jin also shared the best practices Investment bank has really matured adopted by the Chinese government This year, AIIB also launched an in a short period of time, and is in clearing hurdles for building inaugural Asian Infrastructure rapidly progressing to become one massive infrastructure across China. Forum during the Mumbai meeting, of the most important infrastructure "We must be innovative and we must drawing investors from private financiers across the world," said the be responsive to the needs of the companies around the globe. minister, who is also on the board of (local) people," he said. Speakers at the forum called upon governors at AIIB. multinational companies to follow He also termed the Beijing-based public-private partnership model in Various private companies and bank as a problem-solver in order to order to build cross-countr y i n t e r n a t i o n a l a g e n c i e s a r e forge a win-win partnership. "I believe connectivity in Asia. showcasing their latest solutions,

28 News From China July 2018 China-India Relations

advanced technologies and other market size and enormous potential, it 2016. o f f e r i n g s i n t h e a r e n a o f only makes sense to these countries to infrastructure development at the be more active internationally," he It was estimated that Asia's India Infrastructure Expo. said, while highlighting the potential infrastructure needs will be over scope in building rural-infrastructure 1.7 trillion U.S. dollars per year till Among others, International in India and China as well as other 2030. Fund for Agricultural Development developing nations. (IFAD), a UN agency headquartered India has emerged as the biggest in Rome is also ready to join hands Indian Prime Minister Narendra beneficiary of the multilateral bank with AIIB in the area of rural- Modi is scheduled to address the with the country already garnering infrastructure in countries like India gathering on Tuesday. 1.2 billion U.S. dollars of funds. and China. Another 1.9 billion U.S. dollars of During the annual AIIB meeting, fund to finance various projects in Alexander Boehm, IFAD's 22 seminars focusing on building India has also been approved by the representative and technical specialist infrastructure in Asia and beyond, bank. a t t h e G l o b a l E n g a g e m e n t gender and infrastructure and finding Knowledge and Strategic Division, ways to fund infrastructure are being While 75 percent of the bank's told Xinhua at the sidelines of the organized. capital comes from Asia, some meeting that China and India share members from non-Asian regions the responsibility to lead new According to the latest AIIB like Europe, North America, and international institutions. annual report, the bank has financed East Africa, among others, have also 23 projects worth 4.2 billion U.S. joined the bank. "Given their size, given their dollars, a significant increase from AN INDIAN PILGRIM’S JOURNEY IN XIZANG Lhasa, July 5 (Xinhua) -- Anuj annual pilgrimage in southwest windbreaker to keep him warm in the Gupta was one of the first Indian China's Xizang Autonomous severe high-altitude weather, Gupta pilgrims to travel to this sacred Region. arrived at Nathu La Pass along the mountain and lake for this year's Donning sports clothes and a China-India border on June 24. He

News From China July 2018 29 China-India Relations

Gupta runs a jewelry and traditional garment shop in Lucknow of India. “Before coming to Tibet, we spent four days in New Delhi for a medical examination to see if we were fit or not. After that, we were sent to three higher altitude places including Gantok, and then to China," he said. Gupta's mother, 66, finished the pilgrimage with the help of porters and yaks. For younger pilgrims, the route is 52 kilometers of walking around Mount Kangrinboqe and 70 kilometers around Mapam Yumco Lake. traveled to Tibet along with his Xigaze City. The pilgrims walked wide mother. Each group of pilgrims spends roads, across meadows and climbed The two were among 38 people in around 12 days on their journey, up steep slopes covered with the first group of officially organized traveling from the Nathu La Pass to pebbles. On the first day, Gupta pilgrims from India this year. A total Ali Prefecture for a pilgrimage around started out early in the morning and of 500 people are scheduled to arrive Mount Kangrinboqe, 6,656 meters aimed to finish 15 kilometers in a from India to Tibet from June to above sea level, and Mapam Yumco single day. August, said Yang Zhigang, deputy Lake, both sacred Hindu and At the foot of the glacier near director of the office of foreign Buddhist sites. A round trip covers Mount Drolmala, Gupta and others affairs and overseas Chinese affairs in 2,874 kilometers. challenged the limits of their

30 News From China July 2018 External Affairs strength. Steep slopes forced them to helped boost the income of the 4,588 meters above sea level. rest every few steps and a lot of villagers. Last year, the village China agreed to let India people gasped for breath due to the cooperative, which rents out horses officially organize pilgrims to enter high altitude. and yaks, earned about 10 million Tibet through Nathu La Pass in the "I thought we could pass the yuan (about 1.56 million U.S. dollars). Sikkim section of the China-India mountain without much difficulty, but Wang Junhua, director of Baga boundary in 2015. if my porter were not there, I would Township, which administers the In the last three years, 509 such not have made it," he said. village, said they are developing pilgrims entered Tibet through the Residents from Gangca Village at sustainable tourism and offered pass. the foot of Mount Kangrinboqe information online to meet the " E v e r y y e a r , m a k i n g worked as porters and guides during demands of travelers around the arrangements for the pilgrimages the pilgrimage season from June to world. takes two months. We have made August. "The journey I enjoyed the most a r r a n g e m e n t s f o r f o o d , The number of pilgrims was only was not the final destination. I made a accommodations and transportation a few dozen in the 1980s. In 2017, few friends. It made me a stronger for the people. We also have medical tourists and pilgrims exceeded man," Gupta said. staff on standby to help them," Yang 100,000, according to villagers. Gupta began heading home after said. Working in the tourism sector has circling Mapam Yumco Lake, about

External Affairs XI URGES OPEN WORLD ECONOMY

News From China July 2018 31 External Affairs

Peace, growth, reform high on international order. European integration process. Sino-EU agenda Dialogue and cooperation The European Union is willing China and the European Union between the two sides in various areas to expand cooperation in various should make concerted efforts to should be pushed forward proactively, areas and enhance cooperation and safeguard multilateralism, the rules- and political dialogue should be communication in international based free trade system and an open reinforced, he said, adding that the affairs with China, they said, adding world economy, President Xi Jinping political settlement of international that the two sides should refine the said on Monday. and regional hot spot issues should be multilateral trading system through jointly carried forward. multilateral consultation, according Xi's remark came as he met with to an official release. visiting European Council President The two sides should also tap into D o n a l d Tu s k a n d E u r o p e a n the potential of economic and trade Also on Monday, Premier Li Commission President Jean-Claude cooperation, promote two-way Keqiang, Tusk and Juncker co- Juncker at the Diaoyutai State investment and enhance cooperation chaired the 20th China-EU Leaders' Guesthouse in Beijing. in innovation. Cooperation under the Meeting in Beijing. Belt and Road framework should be Being among the world's largest enriched, and practicable cooperation China and the EU agreed to economies and trading entities, China involving third parties should be make negotiation of a bilateral and the European Union are also the explored, Xi said. investment treaty the top priority and beneficiaries and defenders of the build an open, transparent, fair and multilateral trading system, he said. New areas and models for the predictable business environment China-Europe Civilization Dialogue for investors, according to a news The two sides should follow the should be explored to expand release. trend of a multipolar world and the exchanges and cooperation in cultural globalization of world economy, step and people-to-people exchanges. Dialogue and cooperation will be u p s t r a t e g i c d i a l o g u e a n d boosted in environmental protection, coordination, promote trade and Mutual understanding and energ y, renewable economy, investment liberalization and exchanges should be increased, and technological innovation, intellectual facilitation, refine global governance the two sides should respect the core property rights protection, digital and move forward the cause of interests and major concerns of each economy and urbanization. human peace and development, he other to consolidate the foundation said. o f m u t u a l t r u s t f o r t h e Witnessed by Li and the two EU comprehensive strategic partnership, leaders, six cooperative documents China is pushing forward a new Xi said. were signed in customs clearance, round of reform and opening-up as renewable economy and other t h e c o u n t r y m a r k s t h e 4 0 t h China and Europe should also fields. anniversary of its reform and firmly move forward the steady and opening-up this year, with a series of long-term development of bilateral Li said China will open its door measures having already been rolled relations to inject more stability and even wider. out, Xi said. positive energy into international society on the basis of equal treatment The Chinese g over nment The country will deliver better and win-win cooperation, he said. released a new negative list for performance in comprehensively foreign investors recently to further deepening reform and expanding China is ready to work with the lower the market access threshold. opening-up to the Chinese people as European Union to further the well as to the world in the future, he bilateral comprehensive strategic The EU should seize the said. partnership and promote the social opportunity to expand trade and and economic development and the investment with China and loosen Xi stressed that China has always public well-being of both sides. restrictions on high-tech exports to seen the European Union as an the world's second-largest economy, important force that promotes Tusk and Juncker both expressed Li said. stability and the development of gratitude for China's support for the

32 News From China July 2018 External Affairs XI JINPING DELIVERS A SPEECH AT THE OPENING CEREMONY OF THE EIGHTH MINISTERIAL MEETING OF THE CHINA- ARAB STATES COOPERATION FORUM

On July 10, Chinese President Xi a "Sino-Arab future-oriented strategic Sino-Arab all-round cooperation into Jinping delivered a speech at the partnership of comprehensive a new phase. opening ceremony of the eighth c o o p e r a t i o n a n d c o m m o n ministerial meeting of the China- development." China stands ready to work with Arab States Cooperation Forum the Arab side to coordinate the Tuesday morning at the Great Hall of Calling the Arab states China's development strategies and actions, the People in Beijing. natural partners in Belt and Road Xi said. cooperation, Xi said the cooperation Xi announced that China and the had energized every dimension of "We must strive to uphold peace Arab countries had agreed to establish Sino-Arab relations and propelled and stability in the Middle East,

News From China July 2018 33 External Affairs safeguard fairness and justice, Xi also proposed the two sides to East, Xi said. promote common development and achieve win-win outcomes, noting learn from each other as friends do," that China is committed to deepening Xi stressed the importance to Xi said. reforms in all respects, continuing its respect the different national fundamental policy of opening-up circumstances of regional countries Xi said that China and the Arab and pursuing development with its and their independent choices, and states need to strengthen strategic door wide open. uphold the principles of treating each trust, stay committed to dialogue other as equals and seeking common and consultation, uphold the "China looks forward to the g r o u n d w h i l e s e t t i n g a s i d e principle of sovereignty, champion participation of Arab countries in the differences. inclusive reconciliation and fight first China International Import Expo terrorism. in Shanghai this November," he said. "We must together pursue c o m m o n , c o m p r e h e n s i v e , In terms of helping each other With the need to promote cooperative and sustainable security," realize dreams of rejuvenation, China inclusiveness and mutual learning, Xi Xi said. and Arab states must stay focused on announced a series of policies to connectivity, the energy cooperation enhance mutual understanding He also expressed his hope that needs to be driven by both oil and gas between the Chinese and Arab all relevant parties could abide by and low-carbon energy, and financial people, and the official launch of a international consensus and handle cooperation must go in tandem with China-Arab press center. issues related to Palestine in an collaboration on new and high impartial way. technology, Xi stressed. As important players in the international political arena, China "It is imperative to build on the Xi announced that China will set and Arab states should make two-state solution and the Arab up a China-Arab states bank concerted efforts to find a new path Peace Initiative, and bring the consortium. toward full rejuvenation of the Middle Palestine-Israel peace talks out of the

34 News From China July 2018 External Affairs impasse as soon as possible," Xi said. A s t h e M i d d l e E a s t wa s Hailing traditional friendship and confronted with severe challenges in Xi also called on the two sides to cooperation potential, they said the peace and stability, the Arab side work tirelessly toward the goals of Arab states would collectively e x p e c t e d t o s t r e n g t h e n rejuvenating two great nations and participate in the Belt and Road, and communication and coordination building a China-Arab community expressed agreement with Xi's notion with China to jointly promote the with converging interests and a shared of "building a community with a peace and stability as well as future. shared future for China and the Arab development and prosperity in the states, as well as for mankind." region. After Xi's speech, Kuwaiti Emir Sheikh Sabah Al-Ahmad Al-Jaber Al- Calling China a trustworthy The eighth ministerial meeting Sabah, Saudi Foreign Minister Adel partner, they spoke highly of China's o f t h e C h i n a - A r a b S t a t e s bin Ahmed Al-Jubeir and Arab adherence to the purposes and Cooperation Forum gathered nearly League Secretary General Ahmed principles of the UN Charter, and its 300 attendees from China and Arab Aboul-Gheit delivered speeches. important role in international affairs. League member states PRESIDENT XI JINPING MEETS UNESCO DIRECTOR-GENERAL AUDREY AZOULAY

News From China July 2018 35 External Affairs

On July 16, President Xi Jinping development and progress, said Xi. highly of cooperation between the on Monday met with United Nations two sides, saying she appreciated Educational, Scientific and Cultural “As the world's largest intellectual C h i n a ' s c o m m i t m e n t t o Organization (UNESCO) Director- cooperation organization, UNESCO multilateralism. General Audrey Azoulay in Beijing. can play an important role in building a community with a shared future for There is a resurgence of While welcoming UNESCO humanity," Xi said. isolationism and unilateralism in the Director-General Azoulay for her first world today, said the UNESCO chief, visit to China, Xi said the future and Stressing that the sustained and suggesting that the international destiny of people all over the world stable development of China's c o m mu n i t y s h o u l d e m b r a c e were increasingly linked closely. relations with UNESCO was openness and inclusiveness, uphold conducive to global peace and multilateralism, and advocate "In the new era, China adheres to prosperity, Xi said China attached dialogue and exchange, which are the cultural self-confidence, vigorously great importance to UNESCO and i m p o r t a n c e p a r t o f g l o b a l develops educational, scientific, firmly supported the important role governance. t e c h n o l o g i c a l a n d c u l t u r a l UNESCO had played in advancing undertakings, and improves the global development. Noting UNESCO was highly quality of civility," Xi said. "China also compatible with Chinese concepts, upholds the concept of 'a world of "China is willing to deepen Azoulay said UNESCO agreed with great harmony' and harmonious cooperation with UNESCO, work Xi's proposition to "build a coexistence, and advocates mutual together for the benefits of the people community with a shared future for respect, greater exchange and of all countries, especially for helping humanity." stronger mutual understanding for developing countries progress in different cultures.” education, science and technology, "UNESCO is willing to actively and culture," Xi said. participate in cooperation associated China is willing to make greater with Belt and Road Initiative and contributions to advancing dialogue Azoulay thanked China for its contribute to global peace, security between civilizations, human firm support for UNESCO and spoke and cooperation," Azoulay said. CHINESE PRESIDENT MEETS WORLD BANK PRESIDENT IN BEIJING Beijing, July 16 (Xinhua) -- “The World Bank is an important blended interests and shared destiny President Xi Jinping on Monday met force in safeguarding multilateralism of different countries and economic with World Bank President Jim Yong and economic globalization," Xi said. globalization are irresistable, and Kim in Beijing. "China is willing to deepen global win-win cooperation represents the development partnership with the general trend, Xi stressed. Hailing the sound long-term World Bank, strengthen trade cooperation between China and the liberalization and facilitation, jointly "China's development has Wo r l d B a n k , X i s a i d C h i n a promote global poverty alleviation b e n e f i t e d f r o m e c o n o m i c appreciated the World Bank for and sustainable development, globalization and trade liberalization, supporting the Belt and Road safeguard an open world economy and contributed greatly to global Initiative, promoting capital increase and build a community of a shared economic growth as well, " said Xi. and shareholding reforms in recent future for humanity." "We oppose the false accusations y e a r s , a n d i m p r o v i n g t h e against China and will firmly representation and voting power of The world today is a global village. safeguard its legitimate interests." emerging markets and developing Despite the constant appearance of countries, including China. unilateralism and protectionism, the As a responsible major country,

36 News From China July 2018 External Affairs

the builder and contributor to the cooperation by achieving shared multilateralism and economic current international system, China growth through discussion and globalization, as well as for capital will unswervingly support the collaboration on the basis of increase and shareholding reforms at improvement of the multilateral trade international rules," said Xi, stressing World Bank. system and the liberalization and that China is willing to further facilitation of trade and investment, cooperate with the World Bank under "The Belt and Road Initiative striving to work together with the framework of Belt and Road. proposed by President Xi reflects different partners for making the cake farsightedness and greatly contributes of cooperation bigger and achieve Kim expressed gratitude to China to international development and mutually beneficial, win-win results, for its long-term great support to the cooperation and cause of poverty he said. World Bank. Noting that all countries reduction," Kim said. "The World should avoid shutting themselves in, Bank is willing to deepen cooperation "We put forward the Belt and and abide by the rules in the era of under the initiative." Ro a d I n i t i a t ive t o f a c i l i t a t e globalization, Kim said the World international development and Bank appreciated China's support for

News From China July 2018 37 External Affairs XI JINPING, KIM JONG UN HOLD TALKS IN BEIJING

Beijing, June 19 (Xinhua) -- Xi DPRK relations and the situation on Comrade Chair man and U.S. Jinping, general secretary of the the Korean Peninsula. President Donald Tr ump in C e n t r a l C o m m i t t e e o f t h e Singapore achieve principled Communist Party of China (CPC) and They agreed to safeguard, consensus and positive results in Chinese president, held talks with consolidate and develop China- realizing the denuclearization of the Kim Jong Un, chairman of the DPRK relations, and jointly push Korean Peninsula and establishing a Workers' Party of Korea (WPK) and forward the sound momentum of lasting peace mechanism on the chairman of the State Affairs peace and stability of the Korean Peninsula. Commission of the Democratic Peninsula to make a positive People's Republic of Korea (DPRK), contribution to safeguarding world "China speaks highly of the in Beijing on Tuesday. and regional peace, stability, summit," Xi said. prosperity and development. The two leaders had a candid and Comrade Chairman's visit to in-depth exchange of views on the Xi said that China was pleased to China showed the great importance current development of China- see the important summit between he attaches to the strategic

38 News From China July 2018 External Affairs

communication between the two and developing the relations with the courageous to carry out self-reform parties and two countries, Xi said, DPRK remains unchanged, the and innovation, on the basis of the expressing his appreciation to Kim. Chinese people's friendship with the national conditions and having the Xi stressed that he and Kim had DPRK people remains unchanged, whole world in view, and have met three times in less than three and China's support for the socialist explored a development path months, which pointed out the DPRK remains unchanged," he said. suitable for China's national direction for the development of the conditions. relations between the two parties and Xi voiced his willingness to work “We are happy to see that the the two countries, and opened a new with Kim to continue implementing DPRK made a major decision to shift chapter in the development of China- the important consensus reached by the focus to economic construction, DPRK relations. both sides, and promoting the long- and the development of the DPRK's term development of China-DPRK socialist cause has entered a new stage "The CPC and the Chinese relations in a healthy and stable way, to in history," Xi said, adding that China government attach great importance benefit the two countries and the two supports the DPRK's economic to China-DPRK friendly cooperative peoples. development, the improvement of ties," Xi said. p eo p le' s livelih o o d, a n d its This year marks the 40th development path that accords with "No matter how the international anniversary of China's reform and its national conditions. and regional situations change, the opening-up policy. Xi said that since firm stance of the CPC and the the reform and opening-up, the Kim said he was very happy to Chinese government on consolidating C h i n e s e p e o p l e h a v e b e e n meet with General Secretary Xi

News From China July 2018 39 External Affairs

Jinping again in a short period of time. constructive role to this end, Xi said. Central Committee; Chinese Vice He stressed China is DPRK's great President Wang Qishan; Ding friendly neighbor, and Comrade Kim said the DPRK-U.S. summit Xuexiang, member of the Political General Secretary Xi Jinping is a great had achieved positive results in line Bureau of the CPC Central leader who is greatly respected and with the interests of concerned C o m m i t t e e, m e m b e r o f t h e trusted by the DPRK people. parties and the expectations of the Secretariat of the CPC Central international community. Committee and director of the Kim said he appreciated the General Office of the CPC Central sincere friendship of and valuable "If the two sides can implement Committee; Yang Jiechi, member of support from Comrade General the consensus of the summit step by the Political Bureau of the CPC Secretary Xi Jinping and the CPC, the step solidly, the denuclearization of Central Committee and director of Chinese government, and the Chinese the Korean Peninsula will open up a the Office of the Foreign Affairs people, to himself, the WPK, the new and important prospect," Kim Commission of the CPC Central DPRK government, and the DPRK said. Committee; Guo Shengkun, member people. of the Political Bureau of the CPC He said the DPRK greatly Central Committee, member of the "I will guide all WPK members appreciated China's important role in Secretariat of the CPC Central and the DPRK people to earnestly promoting denuclearization of the Committee and head of the implement the important consensus Peninsula as well as in maintaining Commission for Political and Legal reached by Comrade General peace and stability on the Peninsula. Affairs of the CPC Central Secretary and me, to lift the Committee; Huang , unbreakable DPRK-China relations "The DPRK side hopes to work member of the Political Bureau of to a new level," Kim said. with China and other concerned the CPC Central Committee, parties to promote the establishment member of the Secretariat of the Xi said for a period of time, with of a lasting and solid peace CPC Central Committee and head of joint efforts of parties concerned, the mechanism on the Korean Peninsula, the Publicity Department of the CPC Korean Peninsula issue had been put and make joint efforts to achieve Central Committee; Cai Qi, member back on the right track of seeking lasting peace on the Peninsula," Kim of the Political Bureau of the CPC settlement through dialogue and said. Central Committee and secretary of consultation, and the situation on the t h e C P C B e i j i n g M u n i c i p a l Peninsula was developing towards Before the talks, Xi held a Committee; and State Councilor and peace and stability. welcome ceremony for Kim at the Foreign Minister Wang Yi. North Hall of the Great Hall of the "Comrade Chairman has made People. Choe Ryong Hae, vice-chairman positive efforts for realizing of the WPK Central Committee; Pak denuclearization and maintaining After the talks, Xi and his wife Pong Ju, DPRK premier; Ri Su Yong, peace on the Peninsula," Xi said. Peng Liyuan held a welcome banquet vice-chairman of the WPK Central for Kim and his wife Ri Sol Ju, and Committee and director of the On the recent DPRK-U.S. watched an art performance together. International Department; Kim summit, Xi said it marked an Yong Chol, vice-chairman of the important step forward in the political Related activities were also WPK Central Committee and settlement of the Korean Peninsula attended by Li Keqiang, Chinese director of the United Front nuclear issue. He called on the two premier and member of the Standing Department; Pak Thae Song, vice- sides to implement the outcomes of Committee of the Political Bureau of chairman of the WPK Central the summit, and parties concerned to the CPC Central Committee; Wang Committee and Minister for Science make concerted efforts to advance the Huning, member of the Standing and Education; No Kwang-chol, peace process. Committee of the Political Bureau of Minister of People's Armed Forces; the CPC Central Committee and and Foreign Minister Ri Yong Ho, China will continue to play a member of the Secretariat of the CPC attended related activities.

40 News From China July 2018 External Affairs PREMIER LI, PRESIDENT TUSK, PRESIDENT JUNCKER ENGAGE MEDIA

Premier Li Keqiang, Donald a g r e e d t h a t s t r e n g t h e n i n g the substantial progress already Tusk, president of the European communication and cooperation, attained, showcasing the pragmatic Council, and Jean-Claude Juncker, u p h o l d i n g m u l t i l a t e r a l i s m , efforts made by both parties in p r e s i d e n t o f t h e E u r o p e a n constructing an open-end global advancing free and convenient trade Commission, met the press on July 16 economy, and other pressing matters and investment and their unswerving at the Great Hall of the People in are in order for joint efforts. support for the multilateral trade Beijing. system. China and the EU also reached consensus in multiple fields, featuring The Premier eyes ultimate Both parties fully affirmed that underpinning cooperation on consent on issues regarding bilateral the fruitful bilateral meetings were a economy and trade, personnel and trade and investment, with both sides genuine display of their unified cultural exchanges, and multilateral actively pushing forward the progress political willingness to beef up an all- cooperation. of negotiations. And the free trade around strategic partnership, as well as zone motion is expected to go on the a blueprint for the forthcoming stage R e f e r r i n g t o C h i n a - E U agenda, exerting a reassuring force of cooperation. investment agreement negotiation, for cooperation between China-EU Premier Li noted that the exchange of enterprises, Premier Li said. China and the EU unanimously the agreement bidding list milestones

News From China July 2018 41 External Affairs

The Premier stated that China is opportunity, with their market staying strategic partnership and safeguard willing to engage in a further balanced open to Chinese ones as well, Premier principled international orders along trade relation with the EU, with tariffs Li said. with China, eyeing more forces on imports reduced, including pitching in on the process of WTO automobiles, commodities, and Tusk and Juncker echoed his reform. medicine, the negative list for foreign sentiment and said the EU is delighted investment shrunk, and market entry to have witnessed China’s rise to The EU deems it laudable that threshold lowered. That will usher in a become a mainstay of the world. both parties agreed to conduct benign business environment for Meanwhile, China-EU ties have been bidding list exchanges for investment both Chinese and European continuously picking up momentum negotiations. And a new string of enterprises on the same footing. with enormous untapped potential. achievements are within expectation, Tusk and Juncker said. China hopes that European The EU is willing to push forward enterprises will make the most of the the development of the China-EU MULTILATERALISM STRESSED WITH EUROPEAN LEADERS Premier Li Keqiang, European 20th China-EU leaders' meeting in relations have come to an important Council President Donald Tusk and Beijing on July 16. stage. China steadfastly supports European Commission President European integration and hopes to Jean-Claude Juncker co-chaired the Premier Li said China-EU see a united, stable and advancing EU.

42 News From China July 2018 External Affairs

China is willing to enhance stability and development. During the meeting, the two strategic communication with the EU, sides exchanged the bidding list on deepen pragmatic cooperation and The two sides agreed to jointly the China-EU investment agreement push forward the comprehensive safeguard the Charter of the United and agreed to start dialogues on drug strategic partnership, the Premier said. Nations and international law, control and humanitarian aid and to strengthen dialogue on foreign affairs perform a joint feasibility study on President Xi Jinping will meet and security policy, and address deepening cooperation in the wine with Tusk and Juncker to exchange common challenges. and spirits industries. opinions over the development of China-EU ties, he added. They reached consensus on Dialogue and cooperation in building an open world economy, such fields as the environment, The two sides agreed that facing a promoting trade and investment energy, intellectual property rights, complicated international situation, liberalization and facilitation, standing digital economy and urbanization especially rising unilateralism and a g a i n s t p r o t e c t i o n i s m a n d also will be promoted. protectionism, China and the EU - unilateralism, supporting multilateral being two major forces and trade and abiding by WTO rules. China and the EU are committed economies in the world - should work to strengthening dialogue and together to maintain the rules-based China and the EU also plan to cooperation on intellectual property. international order. They should establish a working group as a They will expand two-way opening- promote multilateralism, support free communication mechanism to up, improve the environment for trade, and promote global peace, discuss issues about WTO reforms. market access and investment,

News From China July 2018 43 External Affairs promote the alignment between differences, which will be properly European (CEE) countries. He said China's Belt and Road Initiative with handled based on mutual respect, 16+1 cooperation is an open, the EU development plan, and equality and mutual benefit. transparent and inclusive cross- c o m p l e t e t h e C h i n a - E U G I regional cooperation platform and a Agreement negotiations as soon as Premier Li pointed out that useful supplement to China-EU possible. China's door of opening-up will only relations. open wider. Recently, the Chinese The two sides agreed to advance government released a new negative It was decided at the meeting to activities under the framework of the list for market access of foreign e s t a b l i s h t h e 1 6 + 1 G l o b a l "2018 China-EU Tourism Year", so as investment, which will further expand Partnership Center in Sofia, Bulgaria, to enhance tourism cooperation and market access. to help businesses in 17 countries people-to-people exchanges. This is an opportunity for the EU better understand EU laws and to expand trade and investment in regulations during their cooperation. They pledged to support the G20 China, relax restrictions on high-tech as the main forum for international exports to China, and create a fair and European countries and EU economic cooperation and continue transparent environment for Chinese institutions are welcome to carry out to play an active role in global companies to invest in Europe, he third-party market cooperation with economic and financial governance. said. China in CEE countries to achieve mutual benefits and all-win It was also agreed that the Premier Li introduced the just- outcomes, according to the Premier. common interests between China and concluded seventh leaders' meeting the EU are far g reater than of China and 16 Central and Eastern Tusk and Juncker said this year

44 News From China July 2018 External Affairs

marks the 15th anniversary of the cooperation, which provided In the morning, Premier Li and establishment of the comprehensive opportunities for China and CEE Juncker attended the opening strategic partnership between China countries to carry out face-to-face ceremony of a roundtable of and the EU. Positive progress has been communication and cooperation. Chinese and EU entrepreneurs, and achieved in bilateral cooperation in h e a r d t h e i r s u g g e s t i o n s o n fields of trade, investment, diplomacy, The two sides also exchanged deepening China-EU cooperation. connectivity and climate change. opinions on international and regional The two sides agreed that China-EU issues of common concern. economic, trade and investment They said that major changes, cooperation enjoy broad prospects, especially rising protectionism and After the meeting, Premier Li, pledging joint efforts to expand unilateralism, are closely related to Tusk and Juncker jointly witnessed the two-way opening-up, ease market world peace and development and signing of the China-EU cooperation access and optimize the business require shared responsibility taken by documents in fields such as e nv i r o n m e n t f o r a w i n - w i n both China and the EU. i n v e s t m e n t , e n v i r o n m e n t a l situation. protection, circular economy, Blue Any actions concerning such Partnership and customs. State Councilor and Foreign matters should be based on Minister Wang Yi and head of the international rules and historical They agreed to issue joint National Development and Reform experiences to avoid conflicts and statements on the 20th China-EU Commission He Lifeng also attended social instability, they added. leaders' meeting and global issues, the event. including climate change and clean They also spoke highly of 16+1 energy.

News From China July 2018 45 Culture & Life

Culture & Life EGRETS AT HONGZE LAKE WETLAND IN E CHINA’S JIANGSU

Egrets are seen at the Hongze Lake wetland in Sihong County, ’s Jiangsu Province, July 11, 2018. (Xinhua/Xu Changliang)

Egrets are seen at the Hongze Lake wetland in Sihong County, east China’s Jiangsu Province, July 11, 2018. (Xinhua/Xu Changliang)

46 News From China July 2018 Culture & Life

Egrets are seen at the Hongze Lake wetland in Sihong County, east China’s Jiangsu Province, July 11, 2018. (Xinhua/Xu Changliang) STUDENTS LEARN MAKING SKILLS OF INTANGIBLE CULTURAL HERITAGES DURING SUMMER VACATION IN SHANDONG

Intangible cultural heritage successor Wang Xin (C, upper) teaches children to make steamed buns at her home in Zaozhuang, east China’s Shandong Province, July 8, 2018. Some students in Zaozhuang learnt making skills of intangible cultural heritages to enrich their summer vacation. (Xinhua/Sun Zhongzhe)

News From China July 2018 47 Culture & Life

Photo taken on July 8, 2018 shows a steamed bun made by intangible cultural heritage successor Wang Xin in Zaozhuang, east China’s Shandong Province. Some students in Zaozhuang learnt making skills of intangible cultural heritages to enrich their summer vacation. (Xinhua/Sun Zhongzhe)

Intangible cultural heritage successor Wang Xin (C) teaches children to make steamed buns at her home in Zaozhuang, east China’s Shandong Province, July 8, 2018. Some students in Zaozhuang learnt making skills of intangible cultural heritages to enrich their summer vacation. (Xinhua/Sun Zhongzhe)

48 News From China July 2018 Culture & Life GIANT PANDA “YUAN ZAI” CELEBRATES 5TH BIRTHDAY AT TAIPEI ZOO

Photo taken on July 6, 2018 shows giant panda “Yuan Zai” at Taipei Zoo in Taipei, southeast China’s Taiwan. July 6 this year marks the fifth birthday of a giant panda nicknamed “Yuan Zai”, whose parents are from Chinese mainland. (Xinhua/Xue Yubin)

Photo taken on July 6, 2018 shows giant panda “Yuan Zai” looking at its birthday cake at Taipei Zoo in Taipei, southeast China’s Taiwan. July 6 this year marks the fifth birthday of a giant panda nicknamed “Yuan Zai”, whose parents are from Chinese mainland. (Xinhua/Xue Yubin)

News From China July 2018 49 Xizang Today

Photo taken on July 6, 2018 shows giant panda “Yuan Zai” looking at its birthday cake at Taipei Zoo in Taipei, southeast China’s Taiwan. July 6 this year marks the fifth birthday of a giant panda nicknamed “Yuan Zai”, whose parents are from Chinese mainland. (Xinhua/Xue Yubin) Xizang Today DELEGATION FROM TAIWAN VISITS XIZANG

Wu Yingjie, Secretary of the Communist Party of China (CPC) T i b e t A u t o n o m o u s R e g i o n Committee, held a talk with Hung Hsiu-chu, former chairperson of the Taiwan-based Kuomintang, in Lhasa on June 15, according to news from Tibet's local official TV station.

At the meeting, Wu Yingjie expressed his welcome to Hung Hsiu-chu and gave an overview of the economic and social development in Tibet.

Hung Hsiu-chu said that she hopes to increase exchange and cooperation between Taiwan and Tibet, together making contributions to achieve the Chinese dream of national rejuvenation.

Wu Yingjie said that Tibet is Wu Yingjie, Secretary of the Communist Party of China (CPC) Tibet Autonomous Region Committee, hold a talk with Hung Hsiu-chu, former chairperson of the Taiwan- currently at one of the best periods in based Kuomintang, in Lhasa on June 15.

50 News From China July 2018 Xizang Today history as its economy is currently Tibet for tourism, to invest in and special care of the Communist developing rapidly, society continues industries, to strengthen exchanges, to Party of China and with the support to be stable, people's livelihoods have develop pragmatic cooperation, and selfless assistance of people g reatly improved, ecological achieving mutual beneficial results. throughout the country, Tibet has protection is going well, all ethnic achieved great development and groups are unified and harmonious, Hung Hsiu-chu expressed her people of all ethnic groups live happy infrastructure continues to improve, s i n c e r e a d m i r a t i o n o f t h e lives in peace and contentment. people's freedom of religious belief is achievements Tibet has made in fully guaranteed, and cultural heritage economic and social development. She hopes to increase exchange is preserved and passed down. and cooperation between Taiwan and She said that Tibet is the roof of Tibet, together making contributions He said that he hopes more the world and a wonderland on the to achieve the Chinese dream of Taiwan compatriots will come to earth. Under the strong leadership national rejuvenation.

MONGOLIAN MONKS FINISH STUDIES IN CHINA’S TOP COLLEGE

Monks from Mongolia receive their certificates of graduation.

The graduation ceremony of the Temple in Beijing on June 1. have completed the eight-month training class for Mongolian monks at course. the High-level Tibetan Buddhism 10 monks from the Sain Nomun College of China was held at Xihuang Monastery in Ulaanbaatar, Mongolia According to the college, seven

News From China July 2018 51 Xizang Today of the monks received novice rings in Mongolian monk training class. and increased their knowledge and Xihuang Temple. The monks in this understanding of China's domestic class were diligent, polite, and He said that with strong support and social conditions, giving them a dynamic. For the 10 monks who and kind attention from the Chinese more profound and intuitive completed the course, the college government, they were fortunate to understanding of Chinese culture. hoped they would continue to be able to study at the High-level advance their studies and improve Tibetan Buddhism College of China. Lastly, the college donated their Buddhist attainments, carrying After nearly a year of hard work, they scriptures to the Mongolian monks on the Buddhist traditions of learned a lot, and their Buddhist and expressed their best wishes. compassion and altruism, and being k n o w l e d g e h a d g o t g r e a t M e m b e r s o f t h e B u d d h i s t compassionate towards all beings. improvement. Their ability to defend Association of China, monks from The college also hoped they would debates had been exercised, and their the Yonghe Lama Temple in Beijing, become friendly ambassadors level of Chinese and Tibetan language and teachers of the High-level between China and Mongolia, skills had been significantly Tibetan Buddhism College of China promoting cultural exchanges strengthened. During their visit to also attended the ceremony. between the two countries, and after famous Buddhist sites at Wutai returning home, they would share Mountain, , Putuo T h e H i g h - l e v e l T i b e t a n what they have learned, seen, and felt Mountain, and others, they witnessed Buddhism College of China was while studying in China with their how China implements the policy of established in 1987 in the Xihuang family, friends, and other Buddhist freedom of religious belief and the Temple in Beijing and is the highest followers. prosperity and development of academy of Tibetan Buddhism in Buddhism in China. Visiting Shanghai China. Yunden Kaichei delivered a and other developed cities in speech as the representative of the Southern China opened their minds YOUTH FROM QINGHAI AND HONG KONG STRENGTHEN CULTURAL EXCHANGE VIA THANGKA "I went to Tibet four years ago and began to know about its culture," Chen Yuqi, a student at the Chinese University of Hong Kong said. "At that time, when I saw thangka, I thought it was very beautiful. This time I am lucky enough to come to the birthplace of thangka to learn the art, and I'm especially looking forward to the next 40 days of study."

On July 7, the "2018 Thangka Workshop: Junior Thangka Artists Internship Program" was launched in Tongren County, Qinghai Province, in which 13 students from Hong Kong will spend 40 days in learning the thangka handicraft. During this time, in addition to studying thangka art at

52 News From China July 2018 Xizang Today the Thangka Academy, the students Tibetan Buddhist culture, including Department of Anthropology at the from Hong Kong will also undergo an thangka art. Chinese University of Hong Kong, art exchange with thangka painters in believes that thangka painting order to understand how to convey "In 2016, we organized the first requires a lot of skills, and it is expressions in thangka painting. group of Hong Kong students to necessary to understand many study thangka painting in Tongren feelings and thoughts. To this end, Located in Tongren County, County. The students all completed she hopes that through this learning Huangnan Tibetan Autonomous the painting course, and after exchange, she will be able to Prefecture, Qinghai Province, returning to Hong Kong, they understand Tibetan culture on a "Regong", or the "golden valley", is exhibited their own works at the Hong deeper level, so that when she returns known as the "hometown" of Tibetan Kong Cultural Centre, which attracted to Hong Kong, she can help her painting. Thangka is foremost of the a lot of attention and inquiries from friends better understand Tibetan Regong arts, and in 2009, it was listed visitors. For the people of Hong culture, too. by UNESCO as a human intangible Kong, thangka is particularly cultural heritage item. mysterious and interesting," Wu Wu Hanzhong said that the Hanzhong said, adding that the Thangka Handicraft Learning According to Wu Hanzhong, second group of Hong Kong students Program is only a small part of chairman of the Qinghai-Hong Kong has come to study, using thangka as a exchange efforts between Qinghai Yo u t h E xch a n g e P r o m o t i o n medium for strengthening cultural and Hong Kong. He hopes that in Committee, thangka is a unique form exchange between Hong Kong and future, cultural exchange will be used of painting in Tibetan culture. Wu Qinghai. to strengthen interactions between would like more students from Hong the two places. Kong to learn about traditional Huang Qinning, a student in the SUMMER CARNIVAL ON GRASSLAND IN SW CHINA

More than 500 Tibetans in Gunlhun township, Garze County, ’s province celebrated summer with carnival on grassland on June 21. The Tibetan dances were hot enough to light up the atmosphere and the songs were sound to catch the audiences.

News From China July 2018 53 Xizang Today

More than 500 Tibetans in Gunlhun township, Garze County, Southwest China’s Sichuan province celebrated summer with carnival on grassland on June 21. The Tibetan dances were hot enough to light up the atmosphere and the songs were sound to catch the audiences. CEREMONY TO PRAY FOR HARVEST HELD DURING ONGKOR FESTIVAL IN CHINA’S XIZANG People of Tibetan ethnic group take part in a ceremony to pray for harvest during the annual Ongkor Festival in Qangkyim Village of Shannan City, southwest China’s Tibet Autonomous Region, July 14, 2018. The Ongkor Festival, or Bumper Harvest Festival, which has a history of more than 1,500 years, is celebrated annually by local farmers praying for good harvests of crops. (Xinhua/Lhunzhub Cering)

54 News From China July 2018 Xizang Today

News From China July 2018 55 Book Review

Xi Jinping - The Governance of China-II

Since the 18th National Congress of the Communist Party of China (CPC) held in 2012, the Central Committee with Xi Jinping as general secretary has led the whole party and the people of China in the drive to realize the Two Centenary Goals and the Chinese Dream of national rejuvenation. In pursuit of these goals the country has upheld and developed socialism with Chinese characteristics, advanced the Five- point Strategy and the Four-pronged Strategy in a coordinated and integrated manner, and achieved historic progress in reform and opening up and socialist modernization. We have braved new challenges, blazed new trails, resolved long- standing and complex problems, realized long sought objectives, championed the causes of the CPC and the country, and brought Chinese socialism to the threshold of a new era.

56 News From China July 2018 News From China July 2018 57 58 News From China July 2018 59 60 Postal Regd. No. DL-SW-16/4034/18-20 R.N.I. No. 47440/88 July 2018

Indian Pilgrim praying at Mapam Yumco Lake in Xizang

ellor Ms. Ji Rong

Chinese Ambassador’s Twitter: Luo Zhaohui@China_Amb_India