November 2018

邮发代号2-903 CN11-1429/Z 国内零售价： Canada $7.80 Australia $9.10 USA November 2018

$5.10 Vol. 845 CIIE 10 Turkey TL.10.00 Europe €5.20 UK 元 ₤ 3.20 3.20 Rural China Day in A New 12-14 International Trade Innovation in Mangkhut TyphoonBittersweet 58-61 the Mind of Landscapes 72-77

可栽绕已种地塞达树木寒来球罕沙赤坝按半个多世纪，暑地道机往，变林海，荒牢记使命械林三场原成代人的森林覆盖率绿洲。耕耘。 80%

，

1 米株距排开，艰苦创业 12 圈。

绿色发展

Saihanba is a cold alpine area in northern Hebei Province bordering the Inner Mongolia Autonomous Region. It was once a barren land but is now home to 75,000 hectares of forest, thanks to the labor of generations of forestry workers in the past 55 years. Every year the forest purifies 137 million cubic meters of water and absorbs 747,000 tons of carbon dioxide. The forest produces 12 billion yuan (around US$1.8 billion) of ecological value annually, according to the Chinese Academy of Forestry. Nov 2O18

Administrative Agency: China International Publishing Group 主管：中国外文出版发行事业局（中国国际出版集团） Publisher: China Pictorial Publications 主办: 社 Address: 33 Chegongzhuang Xilu 社址: Haidian, Beijing 100048 北京市海淀区车公庄西路33号邮编: 100048 Email: [email protected] : [email protected] 邮箱 President: Yu Tao 社长: 于涛 Editorial Board: Yu Tao, Li Xia, He Peng 编委会: Bao Linfu, Yu Jia, Yan Ying 于涛、李霞、贺鹏鲍林富、于佳、闫颖

Editor-in-Chief: Li Xia 总编辑: 李霞 Editorial Directors: Wen Zhihong, Qiao Zhenqi 编辑部主任: 温志宏、乔振祺 English Editor: Liu Haile 英文定稿: 刘海乐 Editorial Consultants: Scott Huntsman, Mithila Phadke 语言顾问: 苏格、弥萨罗 Editors and Translators: Gong Haiying, Yin Xing 编辑、翻译: Zhao Yue, Wang Shuya 龚海莹、殷星 Li Zhuoxi, Xu Shuyuan 赵月、王舒雅 Zhou Xin, Hu Zhoumeng 李卓希、许舒园 Li Yiqi, Lu Anqi 周昕、胡周萌李艺琦、鲁安琪 18 Operation: Zhang Yingjie 编务: 张英杰 Design: Alinea Productions 设计: 利雅法盛 Web Maintenance and 网络总监、 Graphic Design Specialist: Andrey Maleev 数据设计师: 安德烈马列耶夫 Advertising Department: 广告部： Telephone: 86-10-88417354 26 or 88417419 电话: 010- 88417354 88417419 Publishing and Distribution Director: Qiu Mingli 出版发行部主任：邱明丽 Telephone: 86-10-68412660 电话: 010-68412660 Remittance to: Publishing and Distribution Department, 邮购收款人： China Pictorial 人民画报社出版发行部 Legal Adviser: Yue Cheng 法律顾问: 岳成 Printing: Toppan Leefung Changcheng Printing (Beijing) Co., Ltd. 印刷:北京利丰雅高长城印刷有限公司

Overseas Distribution: China International Book Trading Corporation (Guoji Shudian), 35 Chegongzhuang Xilu, Features P.o. Box 399, Beijing 100044, China Telephone: 86-10-68413849 18 China’s Emergence as a Major Importer Fax: 86-10-68412166 China Book Trading (Canada) Inc. 24 A Glance at China’s Foreign Trade Telephone: 1-416-497-8096 26 Intelligent Manufacturing Reshapes Global Trade Siemens’ Smart Manufacturing 出版日期每月1日 28 国内刊号: CN11-1429/Z 30 Endless Reform and Opening Up 国际刊号: ISSN0009-4420 京海工商广字第0121号 34 Expanding Imports and Promoting Opening Up In China, subscriptions are available at any post office. China’s Ten Biggest Moves to Boost Trade Since 2001

Subscription and distribution agency in Hong Kong, Macao, and Taiwan: 36 A Golden Age for China’s Consumption Hong Kong Peace Book Company, Ltd. 17/F., Paramount Building, 12 Ka Yip Street, Chai Wan, Hong Kong 39 New Chinese Consumption for a New Era Lego: Building Blocks of Consumption Visit China Pictorial on the Internet: 42 www.china-pictorial.com.cn 46 CIIE: Innovation in International Trade 49 The Logistics of China’s Open Market Belt and Road Trade Figures, 2013-2017 Follow us on: 52 54 Open Global Economy for All 12 16 62

49 72

56 Standard Chartered: Supporting Chinese Enterprises Society 62 Idol Training: The Road to Fame 66 Zorpia Robot: China’s Bionic Helping Hands Express 08 When Will the China-U.S. Trade War End? Culture 70 A Beautiful Narrative of Chinese Characters Sensing China The Story of Modern Chinese Typography 10 Living the Tech Life 72 Landscapes of the Mind

New Ideas and New Goals for a New Era 12 A New Day in Rural China

Ecology 58 Bittersweet Typhoon Mangkhut EXPRESS | NEWS

by Li Xueren/Xinhua New Chapter for China-Norway Ties

October 16, Beijing: Chinese President Xi Jinping development of China-Norway ties is in the common (2nd right) and his wife Peng Liyuan (1st right) pose for interests of the two peoples and meets the demands of a group photo with King Harald V and Queen Sonja of the times in terms of promoting peace, development Norway. and win-win cooperation,” declared Xi, adding that Xi held talks with King Harald V, and they agreed fruitful results had been made since the normalization to inject new impetus into the development of bilat- of bilateral ties in 2016. eral relations and write a new chapter in the traditional Harald V remarked that the visit was an indication friendship between the two nations. that Norway-China ties have returned to a healthy track “Promoting the sustainable, sound and steady and shown strong vitality once again.

04 VOLUME 845 NOV · 2O18

by Liang Xu/Xinhua World’s Longest Cross-sea Bridge

October 24, Zhuhai, Guangdong Province: The toll The 55-kilometer bridge, situated in the waters gate of the Hong Kong-Zhuhai-Macao Bridge. The of Lingdingyang in the Pearl River Estuary, bridge officially opened to traffic at 9 a.m. that day. connects the Hong Kong Special Administrative At the launch ceremony held in Zhuhai the day before, Region (SAR), Zhuhai and Macao SAR. The bridge Chinese President Xi Jinping announced the opening of is the first of its kind in the world and connects the bridge. Praising builders of the bridge for breaking a Guangdong, Hong Kong, and Macao via a supergi- number of world records, Xi said that they demonstrated ant cross-sea traffic project following the principle of the nation’s spirit of striving to overcome any difficulties “One Country, Two Systems.” while showcasing national strength, innovative abilities Construction of the bridge began on December 15, and aspirations to be the world’s best. 2009, and its main structure was completed on July 7, 2017.

CHINA PICTORIAL 05 EXPRESS | NEWS

VCG Deep-sea Research Mission

October 16, Sanya, Hainan Province: Oceanic geology, geochemistry and marine biology, according to research vessel Tansuo-1 returns to her home port. Bao Gengsheng, chief scientist of the expedition. A team of 59 Chinese researchers came back from “The expedition demonstrated that China is capa- the Mariana Trench after completing a 54-day and ble of carrying out comprehensive equipment testing 7,292-nautical-mile deep-sea research mission. and scientific research in the deep seas and abysses,” Researchers achieved fruitful results from the mission declared Ding Kang, director of the Institute of Deep- that included a deep-sea equipment test and scien- sea Science and Engineering of the Chinese Academy tific research in disciplines such as geophysics, marine of Sciences.

06 VOLUME 845 NOV · 2O18

VCG Theatrical Vitality in Ancient Town

October 19, Tongxiang, Zhejiang Province: A musi- Co-founded by several Chinese actors and direc- cian interacts with tourists on an old street during the tors, the festival has become a cultural icon of Wuzhen Theater Festival in the historical water town. Wuzhen, a 1,300-year-old water town. By staging The sixth Wuzhen Theater Festival kicked off on various kinds of performances, the Wuzhen Theater October 18 and lasted 11 days. Theater artists from 17 Festival has injected vitality into the town by attracting countries and regions staged various performances for artists, performers and spectators from across China theater enthusiasts and tourists. and beyond.

CHINA PICTORIAL 07 EXPRESS | COMMENT

When Will the China-U.S. Trade War End? Text by Xu Feibiao

If the U.S. continues to ignore the great common interests of the two countries and tear apart deeply interconnected and embedded bilateral power pulsing through a network built by both sides over many years, both sides will end up as losers, and the fundamental interests of the U.S. will take a big hit.

ince the beginning of this tactics will not help Americans momentum of development and year, the U.S. has unilater- whatsoever. maintain U.S. global hegemony on ally launched several rounds On September 24, China the basis of the realist principles of of unprovoked trade sanc- published a white paper to clarify “America First” and “Make America Stions against China. The trade war the details on China-U.S. economic Great Again.” between the world’s two largest and trade relations which accused economies, with total economic the Trump administration of “trade Truce Unlikely Any Time Soon volume of about 40 percent of the bullyism practices” and sought The Trump administration has global economy, has inevitably reasonable solutions. However, it declared that it is presently unwill- impacted the whole world. When seems the Trump administration ing to negotiate with China. Trump will it end? What is the most reason- continues to ignore the basic facts seems to have benefited much from able solution? Such questions related to China-U.S. trade relations his baffling work. The domestic demand global attention. as well as public opinion and act economy grew strongly, and the arbitrarily. unemployment rate dropped to a Diminishing Global So far, the Trump administra- half-century low. With continued Support for Protectionism tion’s strategy has been obvious. international capital inflows, the Disregarding overwhelming Trump has repeatedly torn up agree- U.S. stock market has climbed to international and domestic opposi- ments reached by the two countries historic highs. And the latest polls tion, the U.S. government recently in favor of constantly adding more showed his approval rating rising announced a decision to impose pressure on China. This routine to nearly 50 percent, surpassing additional 10-percent tariffs on does not seek to eliminate bilat- Obama’s during the same period in 200 billion U.S. dollars of Chinese eral trade deficits and change what his presidency. products starting from September he considers China’s “unfair trade Consequently, he has little 24. Furthermore, the tariff rate will practices”—he has ulterior motives. motivation to seek a truce until increase to 25 percent in January In the short term, through the “benefits” of the trade war are 2019, and U.S. President Donald eye-catching and unprecedented exhausted. In addition, Trump’s Trump has even threatened to trade protectionism measures, the neo-mercantilism economic poli- impose 25-percent tariffs on the Trump administration seeks polit- cies and hawkish allies also evidence remaining US$267 billion worth of ical capital ahead of the upcoming the “belligerent” nature of the U.S. imports if China retaliates. midterm elections to solve domes- administration, so they will not call The bullying attitude of the tic political problems and lay the off the trade war until they get what American side is glaring. Trump groundwork for the 2020 presiden- they expected. claimed that imposing tariffs on tial election. Trump believes that the U.S. Chinese goods would protect the For the long run, the Trump holds a bigger stack and more interests of the American people, administration intends to reshape advantages in this game. Compared but his sophomoric grasp of the the U.S.-led international economic to China’s slowing-down economy, global economy and strong-arm and trade order, suppress China’s the U.S. one seems to see strong

08 VOLUME 845 growth momentum. Moreover, economic development situations of U.S.-China economic and trade China and the U.S., and the domes- dependence is not balanced, so he tic political development situations believes that the U.S. can “easily of the two countries. If the exten- win” the trade war with China. sion of the trade war hurts the Facing the “trade bullyism” of economic growth and stability of the U.S., China definitely will not the U.S., and its negative impact is give in to every demand. In modern widely felt by the American people times, there is no precedent for and affects public opinion, the U.S. China compromising due to exter- government will actively consider a nal stress and unfairness. China has compromise and propose a truce. said that it will take active consid- Therefore, the end of the trade According to the spokesman of China’s eration to improve the China-U.S. Ministry of Commerce, China does not want war depends on the arrival of the to see escalating Sino-U.S. economic and cost-benefit tipping point of the trade imbalance, but overall, the trade friction, but is prepared for all possible differences between the demands scenarios. VCG U.S. waging the trade war. If tariffs of the two sides are still huge, so continue to be levied to the point it would be difficult to reach a that the political and economic compromise in the short term. Americans, enabling them to enjoy costs and losses of the U.S. In fact, the trade war is a an affluent life while reducing living outweigh its gains, both sides will bargaining tool and an extension of costs. consider a truce; otherwise the trade negotiations. In addition, consid- It should also be noted that war will continue. ering the upcoming midterm elec- China is the largest holder of U.S. For now, we can expect 2019- tions and Trump’s deep domestic treasuries, with more than US$3 2020 to be a critical period for the political turmoil such as the “Russia trillion worth of foreign exchange trade war. Because the U.S. midterm probe” dragging him down, he reserves, most of which is held in elections will be over by that time, will not easily give up the powerful U.S. dollars, greatly supporting the Trump’s political motivation to manipulative tool of the trade war U.S. dollar global system. continue to manipulate via the trade to sway public opinion. Therefore, a Moreover, China and the U.S. war will decline. Moreover, continu- China-U.S. trade truce is unlikely to have formed a complicated and ing to play with fire is quite likely happen this year. intertwined relationship in the to have a negative impact on public world’s industrial supply and value opinion, which is not wise for the Deep Interconnection to chains. As a center of the global lead-up to the following presidential Bilateral Breakdown production network, China is an election. Since China’s reform and open- irreplaceable supplier to many This will also be a critical period ing up, the economic and trade American industries. When the for U.S. economic growth. The ties between the two countries supply chains are destroyed, the short-term dividends of Trump’s have been constantly strengthened. survival of many American enter- new fiscal, trade and financial poli- In 2017, the total trade volume prises will be threatened, leading cies will gradually be exhausted, between China and the U.S. reached to industrial depression and mass and the structural factors that limit nearly US$600 billion. China has unemployment. economic growth and the negative become the largest export market Therefore, if the U.S. continues effects of the trade war will begin to of the U.S. outside North America. to ignore the great common inter- emerge. The U.S. economy is likely Various U.S.-produced goods are ests of the two countries and tear to reach a peak and fall, with rising sold to China, including 62 percent apart the deeply interconnected and economic and financial risks. This of the country’s soybeans, 14 embedded cooperation mechanism may make it easier for the U.S. to percent of cotton, 25 percent of built by the two sides over many compromise, prompting the two Boeing planes, 17 percent of auto- years, it will eventually result in steep sides to end the trade war. mobiles and 15 percent of integrated losses on both sides and hurt the circuits (IC). At the same time, fundamental interests of the U.S. China’s high-quality and low-cost How long the trade war will last The author is an associate research fellow products have also become import- depends on many factors, includ- with the China Institutes of Contemporary ant parts of daily lives of ordinary ing the progress of negotiations, the International Relations.

CHINA PICTORIAL 09 SENSING CHINA

Living the Tech Life Text by Helena Villar Segura

Anyone living in China will agree with me: Changes are faster here than anywhere else.

our years ago, I used cash things are one step ahead here. as I was walking on the outskirts for almost every transac- of the city next to the mountain tion. I did use a credit card QR Pineapples surrounding my university, I saw occasionally, but never my WeChat is an app similar to a really old man in pajamas selling Fmobile phone. Then, I arrived in WhatsApp that incorporates multi- juicy pineapples. He carried them the future: China. Considering that ple functions. It can be used not in a heavy cargo tricycle and didn’t technological breakthroughs have only to send messages and call, but look like he had ever used a smart- already penetrated almost every also to share “Moments” and follow phone. However, when I asked him aspect of life, marveling at how subscription accounts, shop for if I could use my phone to pay, he much can be done with my mobile groceries, make flight reservations, smiled at me and said yes, show- phone already sounds trite. When order food and even pay utilities. ing me a QR code to scan with my I try to explain this to my friends I estimate that 90 percent of the WeChat app, just like everywhere back home in Spain, they always time I spend on my mobile phone else in China. I couldn’t believe insist that the same things are is while using this app. In fact, it: An ancient man dressed as if he starting to happen there. However, the first thing I ask when buying seldom left the house selling fruit every major advance in technol- anything in China is: Can I use out of a handmade tricycle accepts ogy I see in my country already WeChat to pay? mobile payments. I wondered how happened in China a while ago. In 2015, I lived in Fuzhou, a he managed to learn such a new This is why I feel that so many coastal city in southern China. Once system at his age. He explained to

The author on a motorbike used to deliver parcels in China, next to one of the most October 18, 2018: A peddler in Shenzhen City selling sticks of candied hawthorn shows his QR popular bike-sharing brands. courtesy of the code for payment. VCG author

10 VOLUME 845 NOV · 2O18

it will be happening in China first.

Coffee from the Sofa in Logistic China I really enjoy drinking coffee while writing. As I was preparing this article, I yearned for it so much that I bought a cappuccino with my phone: It was delivered to my door in 30 minutes. Then, I realized my fridge was almost empty, so I shopped for groceries using WeChat. They arrived in 40 minutes. I needed to return a book to a friend on the other side of town, and I found a guy through an app who came to my house to pick it up. My friend got the book in 50 minutes. If I need pills, I can have them within an hour. If I lose a valuable item, there is an app where you can specify place and time of the loss, June 17, 2018: Before a World Cup game, over 20 football fans ordered 300 bottles of beer, prompting half a dozen delivery guys to rush to the supermarket to buy the beer and and people will look for it and send deliver it. VCG it back if they find it. You don’t have to go to the post office to deliver me that his daughter received the leave the bike almost anywhere, at parcels or letters because you can payments at home. This man had no your convenience, sometimes at the use an app to summon someone to problem adapting to big changes. main door of your house or class- come to pick it up in a short time. room, which means walking is not And still almost every day I Bike-Sharing Boom necessary anymore! In fact, during discover something new on WeChat, After a year and a couple of my last year as a student at Peking a new app that makes life easier months in Fuzhou, I moved to University, I never took the metro or a new innovation on the street. Beijing. A totally different place in to class. Riding a bike was faster, Every day I’m surprised by techno- terms of size and weather—even healthier and also environmen- logical advancements in China and the accent was totally different. But tally friendly. Moreover, your bike by people using them. There are the most lasting first impression couldn’t be stolen! What could go facial recognition systems in offices. was none of these things. When I wrong? Well, ask somebody with a There is a Chinese version of Uber arrived in the capital of China, I dead mobile phone! called Caocao which provides only found bicycles everywhere. Similar Surprisingly, last summer electric cars. Even a social credit bikes of all colors parked in random I discovered exactly the same system is preparing to rate citizens areas. Orange and yellow stood out Chinese bikes in different cities based on their behaviors. from the rest. The sharing economy in Europe: Granada, Marbella Some may think I’m exaggerat- has arrived in the city, and bikes and Oxford, among others. So, I ing, but anyone living in China will can be rented via smartphone apps. guess bike sharing is not a unique agree with me: Changes are faster People of all ages and nationalities thing anymore. But… what about here than anywhere else. And, in seem to have permanently parked car sharing, electrical bike sharing, some aspects, going back to Europe their old-fashioned bikes in favor of powerbank sharing or umbrella means going back to the past. the brand-new ones. Again, scan- sharing?! You can find any of these ning a QR code on the handlebar in China, and not only in big cities or behind the seat unlocks the bike, but the smaller ones too. I don’t The author, who is from Spain, was a graduate of Peking University. She currently which will be ready to ride. There know what will happen next in the works for a Spanish company in Ningbo, are no set parking lots, so you can sharing economy era, but I’m sure southeastern China’s Zhejiang Province.

CHINA PICTORIAL 11 New Ideas and New Goals for a New Era

A New Day in Rural China Text by Lu Yilong

Revitalization efforts in rural areas must maintain continuity of rural society and enhance rural values. They must inspire rural residents to adjust their lifestyles and production modes to merge with the development of modern society.

fter four decades of rural areas, and some remote reform and opening mountainous areas with harsh up, China’s rural areas natural conditions are still plagued have undergone tremen- by poverty. Furthermore, popu- Adous changes. In the past, huge lation migration has resulted in numbers of rural Chinese resi- the “hollowing out” of rural areas. dents struggled just to meet food Many working-age rural residents and clothing needs, but now the venture to cities seeking employ- majority of rural areas have nearly ment as migrant workers, leav- achieved status as moderately ing only the elderly and children prosperous societies. Per capita behind in the villages. annual disposable income of These problems evidence that China’s rural residents increased rural development still has a long from 134 yuan in 1978 to 13,432 way to go to truly achieve socialist yuan in 2017, multiplying by over modernization with Chinese char- 100 in just 40 years. acteristics. In this context, China Nevertheless, China’s rural introduced a new rural vitalization areas still face some difficulties strategy with an eye on developing on the long road to moderniza- rural areas with thriving businesses, tion. Poverty remains a prob- pleasant living environments, lem. Despite the impressive over- strong social etiquette and civility, all development of rural China, effective governance, widespread regional imbalances continue to prosperity and accelerated agricul- glare across the country’s vast tural and rural modernization.

12 VOLUME 845 NOV · 2O18

Reform-driven Agricultural the agricultural economy has been adopted a reform roadmap that Transformation shown to increase farmers’ incomes goes above and beyond traditional To realize agricultural modern- and expand the social and economic agriculture. Following the devel- ization, China needs to enhance benefits of agricultural production. opment concept stressing that efficiency and yields of the agri- Efforts to enhance the effi- “lucid waters and lush mountains cultural economy through techno- ciency and yields of the agricul- are invaluable assets,” the village logical innovation. Enhancing the tural economy should be driven by banned coal mining and focused its efficiency of the agricultural econ- reform. In this new era, China’s resources on developing rural tour- omy means strengthening overall agricultural reform cannot be ism. This policy enabled it to trans- agricultural productivity, achieving implemented according to any form disadvantageous conditions a constant increase in agricultural standardized mode. It can only be such as remote location in deep output, consolidating agriculture’s accomplished through diversified mountains and sparse arable land position in the national econ- means which align with the actual into sharp advantages. By integrat- omy and increasing agriculture’s conditions of specific regions. For ing rural tourism with traditional contribution to national economic instance, Caojiafang Village on the farming and animal husbandry, the growth. Enhancing the yields of southwestern outskirt of Beijing village has not only created more

November 5, 2017: The paddy testing field of Jiangsu Modern Agriculture Hi-Tech Comprehensive Demonstration Base in Hongze District, Huai’an City, Jiangsu Province. Hongze District hopes to enhance the quality and efficiency of agricultural production through promoting innovative, green agricultural technologies. VCG

CHINA PICTORIAL 13 New Ideas and New Goals for a New Era

jobs for local residents, but also prosperous lives. technology-intensive measures to increased their incomes. Today, Alongside implementation enhance agricultural productivity. increasing numbers of villagers are of the rural vitalization strat- China’s agricultural modernization staying to work in their hometown egy, various regions in China are not only eyes economic objectives, rather than seeking jobs in cities. exploring paths to achieve agri- but also aims to advance social Its rural vitalization practices have cultural modernization. To real- progress. Any advancement of helped Caojiafang integrate ize agricultural modernization, agricultural modernization should environmental protection with many industrialized countries protect the interests of farmers and thriving businesses and relied on capital-intensive and enable them to share the fruits of

June 27, 2017: Farmers collect lotus roots in a pond in Dongsheng Village, Huzhou City of Zhejiang Province. Over the past two years, Dongsheng Village has encouraged local farmers to grow lotus and Manchurian wild rice in tortoise and eel-raising ponds to promote new eco- friendly agriculture and increase local farmers’ incomes. Xinhua

14 VOLUME 845 NOV · 2O18

modernization in a fair way. Of course, China’s agricultural modernization cannot be accomplished overnight and requires a gradual process of reform and relevant supporting measures. From the macro perspective, a socioeconomic environment and institutional system supporting and encouraging

July 27, 2017: Tourists visit a tea garden in Sanjiang Dong Autonomous County, Liuzhou City of Guangxi Zhuang Autonomous Region. Relying on its advantageous tea planting industry, the county is working to promote agricultural tourism to help local poverty-stricken households increase their incomes. VCG

February 9, 2018: Chen Shiyuan (left), a native of Lianghe Village in Chengdu City, Sichuan Province, and other workers pack oranges to be delivered at the distribution center. After graduating from college, Chen returned to his hometown, where he sells oranges grown in the village on e-commerce platforms. VCG

CHINA PICTORIAL 15 New Ideas and New Goals for a New Era

agricultural reform will gradually values while developing rural soci- take shape and improve. From the ety against a backdrop of modern- micro perspective, measures should ization. As China moves toward be taken to mobilize grassroots modernization, the countryside communities and farmers to actively remains an integral piece of its seek innovation and advance agri- social structure. For this reason, cultural reform. continuity of rural society is particularly important. Integrated Rural- Maintaining continuity of Urban Development rural society doesn’t mean leav- By revitalizing its rural areas, ing the countryside unchanged. China aims to ensure continuity Amid China’s social transforma- of rural society and solidify rural tion and economic modernization,

May 16, 2018: Local villagers read at a library in Dashiling Village in Wanning City, Hainan Province. Xinhua

the development of its rural areas should also advance with the times. In essence, rural modernization requires constant adjustment and alteration of lifestyles and production modes in rural areas according to new situations and conditions of social and economic development. Successful work should enable rural dwellers to coordinate and integrate with modern society. Agricultural modernization differs significantly from rural

April 24, 2018: Local villagers practice waist-drum dancing in Xingfu Village, Mashan Town urbanization. Indeed, urbanization in Pingxiang City, Jiangxi Province. Xinhua can play a role in propelling rural

16 VOLUME 845 NOV · 2O18

July 8, 2018: An aerial view of Songjian Village in Wenling City, Zhejiang Province. The village’s red-roofed villas are surrounded by green croplands. VCG

modernization. Rural development development. Such a mechanism to benefit farmers will produce posi- can draw on past urbanization and ensure coordinated development of tive results. For instance, targeted modernization experience as refer- urban and rural areas will facilitate poverty alleviation policies will ences, but rural modernization reasonable allocation and utiliza- help eliminate rural poverty and should avoid transforming rural tion of rural and urban resources, merge rural areas into moder- areas into cities. enabling both farmers and urban- ately prosperous society. As rural Rural modernization should ites to benefit from integrated modernization accelerates, confi- focus on creating a new landscape rural-urban development. dence in rural development will be of integrated development of urban To achieve rural vitalization, reinforced, and China’s rural areas and rural areas through constantly the Chinese government will will take on a whole new look. coordinating and improving constantly strengthen support rural-urban relations, prompting for the development of agricul- agricultural growth with indus- ture, farmers and rural areas. A The author is a professor at the Center for trial growth, and stimulating series of policies and institu- Studies of Sociological Theory & Method, rural development with urban tional innovations to support and Renmin University of China.

CHINA PICTORIAL 17 FEATURES China’s Emerg ence as a Major Importer Text by Zhong Feiteng

As the globalization trend once led by the United States undergoes tremendous changes, China is striding towards becoming a major global importer, widening channels for global economic growth.

18 VOLUME 845 NOV · 2O18 China’s Emerg ence

An aerial view of the National Exhibition and Convention Center in Shanghai, the venue for the first China International Import Expo. by Fan Jun/Xinhua CHINA PICTORIAL 19 FEATURES

October 10, 2018: Railway authorities launch a campaign to promote the upcoming first China International Import Expo on bullet trains running on the Beijing-Shanghai high-speed railway, which will continue until the expo ends on November 10. VCG

n November 2018, the first new drivers are needed to revitalize country’s economic miracle after China International Import the world economy. China’s strides 1978 has been attributed to opening Expo (CIIE) will be held in towards becoming a major importer up. For example, China’s simpli- Shanghai. The event is consid- will fire up global economic growth. fied average tax rate for all products Iered a milestone in the history of Data from the World Bank dropped from 39.7 percent in 1992 the economic interaction between shows that if calculated in RMB, to 7.9 percent in 2016, while the China and the outside world and a China’s GDP was 367.9 billion yuan weighted average tax rate for indus- major turning point in China’s rela- in 1978, and the figure reached trial products decreased from 36.4 tions with the world. 82.7 trillion yuan in 2017, increas- percent to 4.3 percent. The sharply In the era of mercantilism, poli- ing 225 times over. If calculated in lowered tax rates encourage domes- cymakers believed that exports U.S. dollars, China’s GDP multi- tic and foreign economic factors made greater contributions to a plied 80-fold and its per capita GDP to flow in a wider manner, not nation’s economy than imports. about 30-fold during the period, only accelerating the exchange of Then, classical economics theory while global GDP increased nearly economic factors but also enhanc- advocating trade balance dominated. tenfold and the world’s per capita ing the efficiency of factor alloca- In this new historical period, along- GDP quintupled. Such remark- tion, expanding producers’ profit- side the further increase in China’s able economic growth is unprece- ability space and providing more overall national strength and per dented not only throughout Chinese options for consumers. More impor- capita income, imports are playing history, but also globally across the tantly, lower tax rates foster further an increasingly important role in 20th century. economic openness, which has the country. As the globalization Considering the first 30 years enabled China to integrate deeper trend once led by the United States since the founding of the People’s into the global economy and carry undergoes tremendous changes, Republic of China in 1949, the out mutual beneficially interaction

20 VOLUME 845 NOV · 2O18

with the outside world. For a major economic power, an increase in people’s incomes makes the importance of trade gradually decline, and domestic reform starts playing an increasingly significant Exceptional Terms, Extraordinary Expo role in driving economic growth. The China International Import Expo (CIIE), to be held in Shanghai In the early days of China’s reform from November 5 to 10, is the first-ever Chinese fair focusing exclusively and opening up that started in the on imported goods. This exceptional expo has attracted some 2,800 late 1970s, the country’s economic outstanding companies from over 130 countries and regions to unveil more aggregate accounted for less than than 100 new products and technologies. What will be the highlights? Let’s two percent of the global total, and take a first look. its foreign trade lacked competitiveness and exerted very limited influence on the global landscape of international trade. Back 5G Connection then, China’s foreign trade had Qualcomm’s invention first connected mobile phones to the internet, barely lifted off and focused on heralding the era of mobile interconnection that spawned products, expe- the export of resource products. riences and industries that upended lifestyles. During the CIIE, Qualcomm With the continuous introduction plans to fully demonstrate its innovative technologies, product portfolios of foreign capital, China devel- and solutions in 5G, artificial intelligence, mobile connectivity, and Internet oped an export-oriented strategy. of Things to continue leading the new revolution of mobile technology and Consequently, its foreign trade, stimulating the new era of intelligent interconnection of all things. characterized by labor-intensive products trade and export-oriented processing trade, boomed. By the Green and Smart Buildings Modern technology firm Johnson Control has “relocated” its Asia- Pacific headquarters building in Shanghai’s Changning District to the CIIE. As China’s first building to receive the Green Building Evaluation Label (China Three Star), LEED Platinum certification and EDGE certification, the structure utilizes the company’s full line of self-controlled smart technology products. It is the leading model of domestic commercial building solutions and an energy-saving “encyclopedia” for buildings, cutting energy usage by 45.47 percent, water usage by 42.27 percent, and chem- ical energy usage by 20.82 percent annually. It is already a new landmark for Shanghai and Chinese green intelligent construction.

Digitalization Digitalization is the most effective means to achieve growth, improve competitiveness and enhance life quality. Many companies are putting great emphasis on their digital strategies. One of the forerunners and important builders of Industry 4.0, Siemens is bringing leading technologies, a comprehensive portfolio and proven project competencies along the entire value chain of electrification, automation, and especially, digitalization to the expo with an eye on unleashing the power of digitalization alongside its Chinese partners through mutually beneficial cooperation.

A statue of Jinbao, mascot of the first China International Import Expo (CIIE), at a reception center for the CIIE. On October 23, 2018, CIIE reception centers began operating at two airports and three railway stations in Shanghai. VCG

CHINA PICTORIAL 21 FEATURES

Financial Technology Today, the evolution of financial technology has shifted from domina- tion by the global financial services industry towards more collaborative models. New technology has given birth to cross-border and cross-industry ecosystems. Based on this context, Deloitte will showcase its anti-money laundering robots and TraceChain programs at the CIIE to improve the efficiency and reliability of financial services.

Intelligent Logistics Ecosystem Logistics is an indispensable facet of importing. As a provider of stor- age space, GLP is also committed to building a global intelligent logistics ecosystem. At the expo, GLP will focus on the industrial ecological chain and provide a comprehensive display of its logistics facilities network, supply chain financial services and data technology platform. Together, they constitute a logistics ecosystem and drive logistics service model innovation through technological innovation.

Return to Nature August 8, 2018: An exhibitor (left) introduces Daily use products are intimate with everyday life, so product safety his company’s products to clients at the Matchmaking Meeting for Exhibitors and Buyers greatly influences the health and well-being of consumers. B&D Life Health of High-end Intelligent Equipment Exhibition is coming to the expo with natural daily use products that are environ- Area for the 2018 China International Import Expo at the National Exhibition and Convention mentally friendly and completely safe on the skin. The company advocates Center in Shanghai. by Fang Zhe/Xinhua environmentally friendly concepts and products that can easily return to nature.

2008 worldwide financial crisis, Smart Lighting however, the core driving forces In the smart age, lighting is also keeping up. By applying smart technol- of China’s economic growth began ogies to lighting systems around urban landscapes, Signify hopes to facili- to shift from exports to domestic tate revolutionary changes to urban energy allocation and development. At consumption. This is evidenced the CIIE, Signify will launch an intelligent interconnection control platform, by the following figures: In 1978, which could be used not only in governmental and commercial scenarios, China’s degree of dependence on but in homes as well, with an eye on making lighting solutions truly smart. foreign trade was 14.1 percent, which maxed out at 64 percent in 2006 before dropping significantly Future Travel to 33.5 percent by 2017. The ratio of Jaguar Land Rover is actively transforming as electrification, intelli- goods trade to GDP is 20 percent in gence and car sharing sweep across the industry. The automaker will high- the United States and 28.2 percent light its first pure electric coupe SUV at the expo and demonstrate the in Japan, to name a couple of company’s efforts to shift from internal combustion engines to electrifica- top-ranking economic powers. tion, interconnection, intelligence and sharing to play their part in creating Major economic powers have a cleaner, safer and more high-tech future for global consumers. walked different roads along with the evolution of foreign trade. Take the United States as an example: Since 1972, its import volume has

22 VOLUME 845 NOV · 2O18

exceeded export volume, result- It is noteworthy that the different 1990 to 2001 and then redoubled ing in an increasing trade defi- paths taken by the United States twice from 2001 to 2007 and from cit. This eventually resulted in the and Japan closely correlate to their 2008 to 2017, respectively. Currently, collapse of the Bretton Woods respective development stages and the ratio is stable at 63 percent. system and sharp adjustments of cross-border economic collabora- Nevertheless, the current ratio of the foreign exchange rate systems tion situations. Indeed, the drop of China’s per capita GDP to that of of various countries. Although the Japan’s trade-to-GDP ratio is partly the United States only compares United States canceled the direct due to expanded domestic demand. to Japan’s level in the 1960s. This international convertibility of the However, the primary reason is means that theoretically, there is U.S. dollar to gold, the dollar still that Japanese transnational compa- still a huge space for China to catch retains its position as an interna- nies formed an Asian production up with the United States. tional currency, which, to some network, shifting parts of Japan’s The China-U.S. relationship is extent, has been even further solid- production capacity to Southeast entering a crucial stage, and China’s ified. The expansion of the interna- Asian countries and forging a U.S.- opening up has entered a “deep-wa- tional market has increased finan- Japan-East Asia triangle trade ter zone.” China has ranked as the cialization of the United States, and relationship. world’s second largest economy for its domestic economy has become A noteworthy historical fact is eight consecutive years. If measured increasingly reliant on the financial that the ratio of Japan’s GDP to by purchasing power parity accord- services industry. that of the United States witnessed ing to the International Monetary Japan took a different path. reversed U-shaped development, Fund, China has been the world’s From the mid-1970s, with the rocketing from 10 percent in the largest economy for five straight enhancement of their foreign early 1960s to 71 percent in 1995 years. China has played a vital role exchange rate independence, some and then turning back to today’s 25 in the development of the world East Asian economies gradually percent. For a long time, China’s economy. Over the past few years, turned to export-oriented develop- economic aggregate accounted it has contributed more than 30 ment policies, which enabled them for less than one-tenth of that of percent of global economic growth. to quickly merge into the inter- the United States. Since the 1990s, Moreover, the main component national market. Since the 1980s, China has witnessed rapid economic of China’s economic structure Japan’s trade-to-GDP ratio has growth. The ratio of its GDP to that has shifted from agriculture in undergone U-shaped development. of the United States doubled from the 1980s to industry and services. Since 2014, the ratio of employees in the service industry to the July 26, 2018: An exhibitor showcases a coffeemaker at a matchmaking meeting for exhibitors and buyers for the 2018 China International Import Expo. by Jin Liangkuai/Xinhua country’s total working population has exceeded 50 percent. Research shows that China will soon become a high-income country as defined by the World Bank. In this crucial period, China particularly needs to actively expand opening up to promote reform and prompt common development of other countries in the world. Hosting the CIIE provides an important opportunity for the country to press ahead with a brand-new globalization and fulfill its responsibilities to the world.

The author is director and research fellow of the Major Countries Relationship Research Department under the Institute of Asian-Pacific and Global Strategy, Chinese Academy of Social Sciences.

CHINA PICTORIAL 23 FEATURES

A Glance at China’s Foreign Trade Edited by Zhou Xin

he China International Import Expo, which is scheduled to kick off in Shanghai on November 5, has attracted massive global attention. Since China’s reform and opening up that started in the late 1970s, the country has quickly jumped into the world division of labor, and its trade relations with other countries have become increasingly close ever since. During the process of “made in China” products becoming popu- Tlar around the world, China’s population of nearly 1.4 billion has emerged as a key spending force, purchasing an increasingly huge volume of international goods and services. The following data showcases the changes in China’s imports and exports across the four decades since the reform and opening up as well as China’s recent jump in imports.

24 VOLUME 845 NOV · 2O18

CHINA PICTORIAL 25 FEATURES

development models of intelligent manufacturing of major countries have created new space for Intelligent future global economic and trade cooperation. Firstly, intelligent manufacturing will reshape the comparative advantages, and the level of intelligence Manufacturing will become the main determinant of global trade competitiveness. With the development of intelligent manufacturing, the compet- Reshapes itive advantages of products will no longer be determined by cost competition, but by how to produce more personalized and higher Global Trade value-added products with the Text by Huang Yanghua help of more intelligent equipment, which will further widen the value Intelligent manufacturing will create new opportunities for global gap between high and low value- trade in promoting its inclusiveness, innovation, universal benefits added products and reconstruct the and green development. global value chain. Moreover, the new equipment supporting the development of intelligent manufacturing belongs he global industrial revolu- For most countries in the world, to technology and capital intensive tions have not only directly foreign trade is a “mirror” to reflect products, which conforms to the affected the global industrial the status of their industry in the comparative advantages of some layout but also profoundly global value chain. Now, many countries. Treshaped global trade patterns. After countries are carrying out strategic Therefore, after extensive devel- the first industrial revolution, trade layout of intelligent manufacturing opment of intelligent manufactur- of commodities and raw materi- to reshape their global industrial ing, the comparative advantages of als increased sharply worldwide. competitiveness. different countries will change dras- After the second industrial revolu- Overall, intelligent manufactur- tically. Only by promoting practical tion, economic globalization greatly ing is conducive to boosting global cooperation can more people share accelerated and the global industrial investment and trade growth, which the dividends of human technolog- division network expanded. After will provide new momentum to ical progress and enhance the inclu- the third industrial revolution, the help speed up the slow recovery of siveness of global trade. spread of information, technology the world economy since the 2008 Secondly, intelligent manu- and capital has made all countries global financial crisis. facturing will promote the devel- in the world compose a community Comparing the representative opment of industrial integration, with shared interests. intelligent manufacturing devel- which will cause the distinction In recent years, the new gener- opment plans of the United States, between goods and services trade to ation of communications technol- Germany, Japan and China, it become more blurred. Considering ogy has accelerated full penetration seems that the major industrial that production work of the manu- into production and consumption countries tend to develop their facturing industry will be mainly fields, which has redefined both the strengths and avoid their weak- performed by high-efficiency and production process and consumption nesses, actively seeking a develop- high-intelligence equipment in the patterns. The global trend of intelli- ment model for intelligent manu- future, the operations of manu- gent manufacturing has increasingly facturing that strengthens their facturing enterprises will shift to become the norm, and global trade comparative advantages. research and development, design, patterns have gradually changed. Meanwhile, the varying IT, logistics, marketing and other

26 VOLUME 845 NOV · 2O18

service support for production. The employment structure of the industry will develop towards a growing sector of service employment. Accordingly, all countries should strengthen cooperation in education, training and social security systems, jointly cope with the challenges brought by the adjustment of global trade patterns and enhance the inclusiveness of global trade. Fourthly, intelligent manufacturing will promote the development of green industries and will also facilitate more environmentally friendly global trade. With the support of intelligent systems, enterprises can more accurately implement resource management, energy management and logistics management to reduce resource consumption and pollution emissions in production. This will help improve the efficiency of global production, circu- lation, consumption and resource September 3, 2018: Workers on the production line of the Xuanhua branch of Beiqi Foton recycling, effectively reducing the Motor Co., Ltd. in Zhangjiakou City, Hebei Province. The company promotes intelligent manufacturing of heavy-duty special vehicles and new product research and development. It “carbon content” of global trade and has formed a production base of heavy-duty special vehicles centered in the Xuanhua branch promoting green development. of Beiqi Foton Motor Co., Ltd. VCG The development of intelligent manufacturing going in a high-end, production services. Production more vitality to the global econ- service-oriented and green direction services will become the bulk of the omy and trade. Therefore, coun- will inject impetus into economic future manufacturing industry. tries around the world should look globalization and create new oppor- In addition, the internet envi- to reform the existing global trade tunities for the inclusive, innovative, ronment will allow the products statistical and governance systems universally beneficial and green from the manufacturing industry to to better adapt to the new pattern of development of global trade. provide many intelligent services. global trade and enhance its innova- At the same time, it may be For example, Apple’s mobile tion power. accompanied by new adjustments phone is an industrial product, but Thirdly, intelligent manufac- of the foundation, competition the company mainly focuses on turing will change the employment modes and income distribution research and development, design, structure and stimulate structural mechanisms of global trade, which marketing and other services, changes in populations benefiting requires pragmatic cooperation, so that its users can enjoy good from liberalization and facilitation enhanced policy coordination and network services. of global trade, which demands joint efforts of all countries to Intelligent manufacturing accel- that all countries strengthen policy promote the reform of the global erates the integration of manufac- communication and coordination. trading system. turing and service industries as well Demand for labor in the manufac- as the integration of global trade turing sector will reduce as a result in goods and services. Many inno- of the extensive use of intelligent vation and start-up activities are equipment. The main employment The author is an associate research fellow with the Institute of Industrial Economics expected emerge in fields with deep group in the manufacturing industry under the Chinese Academy of Social industrial integration, bringing will be professionals who provide Sciences.

CHINA PICTORIAL 27 FEATURES Siemens’ Smart Manufacturing Text by Li Zhuoxi

Siemens will drive more Chinese enterprises to radiate digital energy.

May 18, 2018: An electric starter in a Siemens workshop. A key player of the fourth industrial revolution or “Industry 4.0,” Siemens is leading the digitalization of enterprises. IC

iemens, a German indus- cutting-edge technology, solutions The digital factory in east- trial giant, has a relation- and project-operation techniques ern Bavaria, Germany, is the most ship with China that can be for electrification, automation and advanced of its type in Europe and traced back 145 years when especially digitalization. The compa- even the world. The factory manufac- Sthe company supplied the country ny’s exhibits at the venue will cover tures one control device per second with its first pointer telegraph. Since fields including energy transforma- on average, which amounts to 15 then, Siemens has put down roots tion, digital manufacturing, digital million units annually across 230 in China and become a firm part- cities and the Belt and Road—items working days. Its product qualifica- ner in China’s development with that are crucial for China to further tion ratio averages as high as 99.9988 work on the country’s first tram, strengthen international cooperation. percent, a number that no other first hydroelectric station and other similar factory can rival. With highly ground-breaking projects. Future Digitalized Enterprises automated production, computers A key player of the fourth indus- What is digitalization? What is in the factory automatically process trial revolution or “Industry 4.0,” the “Internet of Things”? What three quarters of work procedures, Siemens is leading the digitalization is “Industry 4.0”? These abstract preparing delivery for about 60,000 of enterprises. During the upcom- concepts are being translated into global clients within 24 hours. ing first China International Import concrete forms in Electronic Works In September 2013, Siemens Expo, the company will exhibit Amberg of Siemens. Electronic Works Chengdu, a sister

28 VOLUME 845 NOV · 2O18

factory of Electronic Works Amberg, opened in Sichuan Province in southwestern China. The factory, a research and development (R&D) base for Siemens’ global industrial automation products, is completely digitalized from management, product R&D and manufacturing to logistics. With the help of information technology, its data is interconnected with Siemens’ manufacturing base in Germany and R&D center in the United States. Currently, the first- time product qualification ratio is higher than 99 percent at the factory. It cuts delivery time in half compared to other Siemens factories in China. To maintain advantages in global December 5, 2017: An engineer displays an intelligent robot for special firefighting, competition, manufacturers around co-produced by Siemens and China’s Qingdao Aucma Group. VCG the world are maximizing their usage of resources and increasing produc- in 15 Chinese cities to provide engineering concepts and advanced tion efficiency. This is exactly what efficient, reliable and convenient talent development systems into digitalization can facilitate. The service as well as supplying efficient China’s educational system to culti- Siemens factory in Chengdu is a good turbine technology for more than 45 vate the next generation of innovative reference point for China’s future percent of China’s thermal talent and support China’s industrial manufacturing. power plants. upgrade to realize the goals outlined Over the years, China has in the “Made in China 2025” plan. Radiating Digital Energy become one of the largest research From 2011 to the end of 2015, Chinese manufacturers are facing powerhouses for Siemens, and now Siemens invested in China’s educa- a pressing need for transformation the country is home to 21 of its inno- tion with capital and facilities total- because low-cost labor is no longer vation centers and more than 4,500 ing 711 million yuan. As of 2015, the strength of “Made in China” in R&D and engineering staff. These Siemens had built more than 300 the global market. Today, the Chinese employees work in innovation labo- laboratories in conjunction with economy is undergoing structural ratories across the country from Chinese universities and colleges, reform with innovation-driven devel- Beijing and Shanghai to Suzhou, producing 56 types of text books opment. Digital transformation will Nanjing, Wuhan, Wuxi, Qingdao about electronics and machinery. In impact China’s economy profoundly and Chengdu. May 2018, Siemens signed a memo- as it drives China’s industrial upgrade. randum of understanding on educa- As it promotes digitaliza- Cultivating Talent tional cooperation with China’s tion, Siemens is radiating digital McKinsey forecasts that China’s Ministry of Education to culti- energy by creating new business demand for senior technological vate innovative talent for “Made in modes alongside Chinese enter- personnel will reach 140 million in China 2025” under the framework of prises. Statistics show that by the 2020, but supply will fall short by 22 China-Germany cooperation. end of 2017, Siemens had provided million. “The future of digitalization is technological support for more The “Made in China 2025” plan not just about technology or busi- than 167,000 industrial enterprises alongside waves of digitalization ness, but more about enterprises’ in China and had assisted more not only presents great opportuni- ultimate missions, which need to than 1,000 small or medium-sized ties for Chinese manufacturers, but create value for society. This is Chinese enterprises with equip- also raises the necessary skill level for what Siemens advocates,” stressed ment upgrades by offering financ- employees. Along with deep coop- Wang Haibin, general manager of ing solutions. Siemens installed its eration with Chinese manufacturers, the Digital Factory Division of signal systems into 33 metro lines Siemens also introduces cutting-edge Siemens China.

CHINA PICTORIAL 29 FEATURES

Endless Reform and Opening Up Text by Zhang Haibing

Ultimately, a “never-ending” expo requires constant reform and development of the country.

May 4, 2018: An automated container terminal at Qingdao Port in eastern China’s Shandong Province. China is an active participator, steadfast defender and important contributor to the multilateral trading system. China will never close its door but open it even wider to the world. by Guo Xulei/Xinhua

30 VOLUME 845 NOV · 2O18

t the first Belt and Road Forum for International Cooperation held in 2017, President Xi Jinping Adeclared that China would host the first China International Import Expo (CIIE) in 2018. On many other diplomatic occasions, the country has also promoted the CIIE to the international community. In September, when the 2018 summit of the Forum on China- Africa Cooperation was held in Beijing, China pledged to import more commodities, non-resource products in particular, from African countries to support African participation in the CIIE. China is welcoming least-developed African countries to participate in the event for free. Clearly, the impending CIIE is not an expo in the traditional sense.

Exceptional Import Expo The CIIE consists of three parts: Country Pavilion, Business Exhibition and Hongqiao International Trade Forum, inte- grating the World Expo method to display policies and commodities with the function of Davos World Economic Forum to discuss international trade trends. The Country Pavilion focuses on displaying participating countries’ policies on trade and investment, aiming to facilitate mutual policy communication. The Business Exhibition is the major event featuring enterprises from overseas selling commodities produced abroad. Both the enterprises and the products they display represent advanced levels of their respective industries. The Hongqiao International Trade Forum will be held under the theme “Unleashing New Vigor in Global Trade, Creating a New Pattern for Open and Win-Win Cooperation,” with an

CHINA PICTORIAL 31 FEATURES eye on establishing a platform for Far-reaching Influence they can efficiently get quality exchange and communication on The CIIE will last six days start- products at low prices. So, the global economic and trade issues. ing from November 5. How to first import expo has made exten- The forum’s three parallel sessions design a “never-ending” expo with sive and meticulous preparations will focus on “trade and open- enduring influence has been a major on items ranging from facilitating ing up,” “trade and innovation” consideration of organizers. clearance to lowering transaction and “trade and investment.” Their Firstly, “never-ending” refers to cost, displaying products efficiently topics are expected to go beyond continuity. Rather than a one-off and securing deals effectively. To trade issues and delve into global event, the CIIE will be held time guarantee smooth transactions, the governance. and time again. For trading parties, CIIE set up a service platform for The CIIE is actually a venue the premise and foundation of a one-stop transactions, promoting a for trade exchange featuring China sustainable import expo lie in the fusion of online and offline trans- taking the initiative to further consistent draw of exhibitors and actions. For example, the Shanghai open its market by greatly lowering purchasers. Exhibitors care most trading delegation has set up four the institutional transaction cost of about easier access to the Chinese purchasing alliances including a imports to make contributions to market and increased profits, while cross-border import e-commerce building an open world economy. purchasers pay attention to whether alliance, a large retailers alliance,

China (Shanghai) Pilot Free Trade Zone has explored a new channel and accumulated experience for China’s further reform and opening up, as well as its construction of a new system of open economy. courtesy of Pudong New Area Information Office

32 VOLUME 845 NOV · 2O18

the 365-day exhibitions. This enables displayed products to trans- form into commodities, allowing consumers to reach foreign quality products without going abroad. Finally, for China, the CIIE’s overflow effects can constantly promote domestic reform and development, optimize economic structure and upgrade industries. Forty years ago when the country began its reform and opening up, China hoped to exchange market access for technology. But now China is opening its door to host the import expo in an effort to accelerate innovation-oriented development and industrial upgrading of domestic enterprises and constantly meet public aspiration for a better life. Some newly established regulations and the adjustment of some rules have released dividends like tariff reductions. According to a report issued by the tariff committee of China’s State Council, since November 1, 2018, 1,585 taxable items have enjoyed lower most favored nation tariff rates, account- January 27, 2016: China’s ing for 19 percent of all of China’s first MIG retail store specializing in imported taxable items. Since 2018, China has products opens in a comprehensive trading service implemented four tax cuts, drop- Shenyang, capital of Liaoning Province. VCG providers alliance and an exhibit- ping the general tariff level to 7.5 ing services alliance, with an aim percent from 9.8 percent in 2017. In to facilitate accurate connections fact, the Chinese government has between Shanghai’s purchasers and spared no efforts to improve the the exhibitors. The CIIE also hopes business environment. A forerunner to draw more purchasers from of China’s reform and opening up, home and abroad to Shanghai to do Shanghai issued an action plan to business in the future. From this quicken the pace to build an open aspect, the import expo will become economic system, which clarified How to design a permanent trading platform. and detailed measures for further Secondly, the National opening financial and manufactur- a ‘never-ending’ Exhibition and Convention Center ing sectors. in Shanghai will continue to provide All in all, “never-ending” refers expo with services after the CIIE by build- to the constant reform and develop- enduring influence ing the “6+365” One-Stop Trading ment of China. Services Platform like DLG Import has been a major Commodities Center. Already, the country pavilions of New Zealand The author is director of the Institute consideration of for World Economy Studies under the and Mongolia decided to partic- Shanghai Institutes for International organizers. ipate in both the 6-day expo and Studies.

CHINA PICTORIAL 33 FEATURES

Expanding Imports and Promoting Opening Up China’s Ten Biggest Moves to Boost Trade Since 2001 Edited by Zhao Yue

After it joined the World Trade Organization (WTO) in 2001, China adopted a series of measures to address the issue of global trade imbalance and promote its imports. These measures have helped China maintain its high-speed growth in foreign trade and boost its imports. Since China’s entry into the WTO, the value of the country’s newly added imports has either totaled or exceeded US$100 billion annually. Such a large sum is rare globally and has made tremendous contributions to global economic growth.

Accession to the WTO In 2001, China joined the WTO with a import tariffs and remove non-tariff bar- an important milestone for the country’s pledge to gradually streamline administra- riers such as import quotas and import fusion with the global economy, lifting its tive examination and approval procedures, licenses which do not align with WTO reform and opening up to a higher level. relax market access, substantively reduce rules. China’s WTO accession serves as

Enactment of Regulations on the Import and Export of Goods of the People’s Republic of China and Regulations on the Import and Export of Technology of the People’s Republic of China

In 2002, these two documents were ogy import and export and maintained trade, evidencing that China has be- both implemented. They have promoted the order of technology importing and gun to adopt international standards the free import and export of goods, exporting. They have also promoted the on import and export management. regulated the management of technol- healthy development of China’s foreign

Revision of Foreign Trade Law of the People’s Republic of China In 2004, the revised Foreign Trade Law of system for foreign trade authorization, and regulations. It also highlighted the the People’s Republic of China went into and adding clauses to guarantee foreign direction and institutional guarantees of effect. This revision covered three major trade fairness and transparency. Im- China’s further reform on foreign trade aspects, including enlarging the scope of plementation of the revised law served against the backdrop of the country’s foreign trade business operators, replac- as an important symbol of China’s ful- continuing reform and opening up. ing the approval system with a registration fillment of WTO commitments on laws

The right to engage in foreign trade more widely granted In July 2004, China fulfilled its WTO acces- system for foreign trade authorization, six creating a fair market environment and has sion commitment by replacing the 50-year- months before the deadline to which it had played an important role in the rapid de- old approval system with a registration committed. This move was conducive to velopment of China’s imports and exports.

34 VOLUME 845 NOV · 2O18

Implementation of Enterprise Income Tax Law of the People’s Republic of China The Enterprise Income Tax Law of the practice of differing tax rates for do- influence on China’s economic restruc- People’s Republic of China, adopted mestic and foreign enterprises in China. turing and the structural optimization in 2007, came into force on January This law drew on experience from inter- of China’s foreign capital utilization. 1, 2008, ending the two-decade-long national practice and cast a profound

China-ASEAN Free Trade Area (CAFTA) The CAFTA was formed in 2010. Ac- 90 percent of traded goods produced of the free trade zone was another mea- cording to the framework agreement, by ASEAN members. A bold move on sure expanding China’s opening up and China would adopt a zero tariff rate for regional economic integration, the launch driving its reform to a deeper level.

Tariff reduction commitments accomplished In 2010, China further reduced its import tariff reduction commitments to the WTO active participation in economic global- and export tariff rates and fulfilled all of its later that year. This move typified China’s ization during its reform and opening up.

China (Shanghai) Pilot Free Trade Zone In 2013, China (Shanghai) Pilot Free Trade promoting domestic capital for overseas of free trade zones helps drive China’s Zone was officially launched. The free investment and financing. Later, China set domestic reform, especially its reform of trade zone serves as a testing ground for up several other free trade zones in places the economic system, to a deeper level a number of economic and social reforms such as Tianjin, Guangdong, and Fujian. and is conducive to expanding its open- including streamlining administration and These free trade zones are the epitomes ing up. Through these free trade zones, delegating power, introducing the negative of China’s current reform and opening up China is able to better allocate resourc- list, facilitating free exchange of RMB and in the deep-water zone. Establishment es through the international market.

The Belt and Road Initiative In 2013, Chinese President Xi Jinping and Road Initiative”), which has attracted the initiative upholds the principles of proposed the initiative to jointly build the enthusiastic attention from around the extensive consultation, joint contributions Silk Road Economic Belt and the 21st-Cen- world. Aiming to promote economic pros- and shared benefits, marking China’s entry tury Maritime Silk Road (known as the “Belt perity in countries along the Belt and Road, into a new era of all-round opening up.

RMB’s inclusion in the SDR In 2016, China’s currency, Renminbi Rights (SDR) basket as an international tional currency and facilitated more (RMB), was included in the Internation- reserve currency. It further accelerat- extensive foreign investment in China. al Monetary Fund’s Special Drawing ed RMB’s pace to become an interna-

CHINA PICTORIAL 35 FEATURES

A Golden Age for China’s Consumption Text by Chen Qiqing

A fast-growing and increasingly open Chinese consumer market is making great contributions to the world economy.

ith socialism with era. This era features at least three consumption, and exports. In Chinese characteris- major traits: First, consumption a mature economy, consump- tics entering a new era, has become an important impe- tion is the major driving force the Chinese economy tus for China’s economic develop- for economic development and Whas ushered in a new developmental ment. Second, China’s consumption contributes about 70 percent of phase. One essential feature of the is being upgraded. Medium-high- total economic growth. Insufficient new phase is the country’s economic end consumption is rapidly rising consumption had been a persistent shift from high-speed growth to and new consumption patterns problem for China. After the high-quality development. To real- are mushrooming. Third, China’s 18th National Congress of the ize high-quality development, consumption has become a new Communist Party of China (CPC) in improving demand patterns and driver for global economic growth. 2012, China’s consumption started steering the ever-growing impact of to take off and gradually surpassed consumption on the economy are Biggest Economic Driver investment to become the biggest greatly important. It is not a stretch From the perspective of economic driver. Consumption to say that China’s economy has demand, the three drivers of contributed 47 percent of China’s arrived at a consumption-driven economic growth are investment, economic growth in 2013, lower than that of investment. However, June 4, 2018: The 2018 Chongqing International Children’s Education and Products Exhibition. since then, the contribution of China’s educational market for kids has developed rapidly, especially in the larger cities. IC consumption to the economy has been consistently increasing. In the first half of 2018, consumption contributed as much as 78.5 percent of China’s economic growth. Currently, China’s consumption rate is also steadily rising. The consumption rate is the ratio of final consumption expenditures to a country’s total GDP and serves as an important indicator to assess consumption’s role in a country’s economic development. In the early days of China’s reform and opening up that started in the late 1970s, the country’s consumption rate

36 VOLUME 845 NOV · 2O18

September 12, 2018: Consumers look at a new product by Dyson, a renowned British home appliance technology company, in Beijing. At present, the quality of Chinese people’s spending is improving, shifting from low-medium to medium-high-end consumption. IC

witnessed a decline, largely due to country’s national income per capita billion). A large migrant population a drop in household consumption is predicted to exceed US$10,000 can be found in China’s urban areas, rate. In 1983, the country’s final soon. At the same time, China who also promote consumption as consumption rate was around 67 has entered a period of narrow- a group. percent. The figure dropped sharply ing the income gap. More balanced Third, China’s ever-improv- in the years to come. It slightly income is conducive to consump- ing social security system will rebounded between 1994 and 2000, tion growth. Since the 18th CPC free up more household savings but went down again between 2000 National Congress, China has been to be funneled to consumption. and 2010. After 2010, the figure investing more in poverty allevia- Previously, the country featured a picked up again and reached 53.6 tion projects. The millions who are high saving rate and a low consump- percent in 2017. lifted out of poverty will become tion rate. Most Chinese residents Looking to the future, certain new engines for consumption save money with the primary elements will continue to raise growth. purpose of covering possible future the consumption rate and make Second, China’s ongoing urban- medical expenditures or using the consumption the primary driver for ization process will substantially money as pension. Since the coun- China’s economic growth. promote consumption. At present, try has been vigorously improving First, ever-increasing income room for China’s urbanization is its social security system in recent will promote growth of consump- still huge. In the next 10 years, a years, consumption is expected to tion. In recent years, the growth total of 130 million rural residents go up with the expansion of the rate of Chinese residents’ income will be relocated to cities, which social security network and the has risen steadily, continuously is expected to increase consump- improvement in social security surpassing that of the economy. The tion by two trillion yuan (US$288.5 services.

CHINA PICTORIAL 37 FEATURES

Fourth, preferential policies have Chinese consumption’s contribu- Today, trade protectionism is created a sound environment for tion to the world is primarily made rampant around the world. Some consumption upgrades. Since the through the country’s imports. countries have locked their domestic 18th CPC National Congress, China Since 2009, China has been the markets through various measures. has been attaching greater impor- world’s second largest importer of Rather than shifting towards protec- tance to consumption. The report goods for nine consecutive years. tionism, China is further opening, delivered at the 19th CPC National The country is also the fastest-grow- especially its consumer market, to Congress in 2017 emphasized that ing major market for imports the outside world. Chinese President China would improve systems around the world. Take the services Xi Jinping has pledged on many and mechanisms for stimulating trade as an example: From 2013 occasions that China will import consumer spending and leverage the to 2017, the cumulative services commodities and services worth fundamental role of consumption imported by China reached US$2.1 US$10 trillion in the next five years in promoting economic growth. trillion with an annual growth rate and make major contributions to the In 2018, the Chinese government issued Suggestions on Improving Systems and Mechanisms for Stimulating Consumption to Promote Spending Potentials of Residents and Implementation Plan for Improving Systems and Mechanisms for Stimulating Consumer Spending (2018-2020) in succession.

China’s Consumption Fuels Global Growth China is now entering a new round of consumption upgrading, and its consumption is exhibiting new features. These new features include expenditures related to livelihood growing slowly while spending on development and leisure rising quickly. Consumption in services May 15, 2018: A customer shops for imported food at a supermarket in Nanchang City, Jiangxi has witnessed fast development. The Province. China serves as the largest importer of many commodities for many countries globally. quality of Chinese people’s spending VCG is improving, shifting from low-medium to medium-high-end consumption. At the same time, new patterns of 10.7 percent, far exceeding its world’s stability and growth. Held of consumption have developed exports’ 2.5 percent growth rate. in Shanghai from November 5 to fast, with internet consump- China serves as the largest 10, the China International Import tion, mobile consumption, green importer for many countries and Expo is the first state-level expo consumption, sharing consumption of many commodities globally. It is with imports as its central theme. It and credit consumption all realizing the largest importer of oil, agricul- is sure to provide better means for sound growth. tural products, and bulk commodi- various economies to share the fruits Rapidly growing Chinese ties in the world. It is also expected of China’s fast-growing consumer consumption will promote sustain- to become the world’s largest natu- market. able development of the Chinese ral gas importer in 2018. China’s economy, make greater contribu- imports fuel the development of The author is a professor and the head of tions to the world economy, and many resource-based economies, the Macro-economy Research Office of the Department of Economics, Party School become an important new driver for and the Chinese market is tremen- of the CPC Central Committee (Chinese global economic growth. dously important to these countries. Academy of Governance).

38 VOLUME 845 NOV · 2O18

New Chinese Consumption for a New Era Text by Lin Jiang

The current consumption upgrade in China, which is boosting domestic demand by upgrading consumption structure, promotes smooth and high-quality growth of China’s economy.

September 27, 2018: Customers in a big-box store in Shanghai. The Chinese citizens’ expenditures on livelihood have grown slowly while spending on development and leisure has risen quickly. VCG

enerally speaking, a light industrial products rose. This of economic growth. consumption upgrade change facilitated the rapid devel- Today, China is undergoing the reflects a country’s opment of related industries and third consumption upgrade. The consumption level and brought about China’s first round fastest-growing fields include educa- Gspending evolution. Since the begin- of economic growth since the coun- tion, entertainment, culture, trans- ning of China’s reform and opening try’s reform and opening up. portation, telecommunications, up in the late 1970s, the country’s The second consumption healthcare, real estate, and tourism, consumption structure has been upgrade took place from the late especially spending related to IT, upgraded three times, driving indus- 1980s to the late 1990s. In those automobiles and real estate. trial structure upgrade and fueling days, bicycles, wrist watches and high-speed economic growth. radios, known as the “three trea- More Diverse Consumption The first consumption upgrade sured household possessions” of Since the beginning of China’s happened soon after the beginning the 1960s and 1970s, were replaced reform and opening up, the ratio of China’s reform and opening up. by refrigerators, color TV sets and of Chinese spending on liveli- At that time, expenditures on grain washing machines. This consump- hood to the total consumption has dropped while consumption on tion trend drove the second round been decreasing. China’s Engel’s

CHINA PICTORIAL 39 FEATURES

October 2, 2017: Tourists at Minyuan Stadium, a Tianjin culture center which used to host football matches and art performances. Spending during China’s one-week National Day holidays has witnessed steady and rapid growth in recent years. VCG coefficient, a major indicator of document clarified key fields and Considering the demographic living standards, dropped to 29.3 direction of the country’s consump- shift since China’s introduction of percent in 2017 from 63.9 percent tion upgrade and outlined plans to the nationwide two-child policy in in 1978. Spending on develop- promote spending on goods and 2015, related consumption soared. ment and leisure is rising quickly, services, nurture new consump- Youngsters born in the 1990s, which and consumption of services has tion modes and boost consumption account for 16 percent of China’s witnessed fast development. In upgrading in rural areas. total population, are becoming new recent years, fields such as tourism, engines for the country’s consump- transportation, telecommunications, New Trends for Consumption tion upgrade. It is estimated that education, entertainment, culture, With the arrival of the internet from now until 2030, they will and healthcare have become new era, the demands of Chinese resi- contribute more than 20 percent of consumption hot spots which are dents have changed. Previously, the country’s consumption growth. driving the upgrade of residential most Chinese consumers followed The current new outbreak of consumption patterns. broader trends and mimicked their technological revolution in China Alongside the rapid growth peers. Now, their consumption including the mobile internet, big in spending, Chinese residents patterns have become more diver- data, cloud computing and artificial have become more mature and sified and personalized, focusing intelligence will prompt a new batch diverse in terms of consumption on quality goods and services. New of consumption growth points. psychology and behavior. Recently, consumption demands and patterns Further development of the “inter- the Chinese government issued are emerging every day. Greater net+” economy and digital economy Suggestions on Improving Systems attention on brands and consump- will deeply influence traditional and Mechanisms for Stimulating tion quality will be the highlight of consumption realms, driving and Consumption to Promote Spending the consumption upgrade in China promoting the upgrade of tradi- Potentials of Residents. The in the near future. tional consumption fields.

40 VOLUME 845 NOV · 2O18

Improved consumption concepts will make online spending more international, personalized and financialized. From “saving for spending” to “borrowing for spending,” the changing consumption ideas of Chinese residents have boosted the rise of e-commerce and shifted consumption demands. The entertainment and leisure sectors such as movies, gaming and tourism will continue to have robust consumption growth into the July 29, 2018: Customers shop at a Hema Xiansheng fresh food supermarket, Alibaba’s new future. online-to-offline platform. Trends in the fresh food e-commerce industry reflect rising living standards in China, as consumers are focusing more on quality of life and are willing to pay Finally, China’s rural vitaliza- for it. IC tion strategy and the acceleration of its new type of urbanization will vigorously promote consumption upgrade in rural areas. The country’s fight against pollution will funnel consumption towards low-carbon, green, and environmentally friendly modes.

Market with Huge Potential The Chinese economy is now entering a phase of high-quality development. Alongside the constant increase in their income, Chinese people’s spending power is growing. China’s domestic market, April 29, 2018: Consumers at an international automobile exhibition in Nanjing International with a population of nearly 1.4 Exhibition Center. Spending on automobiles has grown fast in China in recent years. IC billion, is developing at a high speed. In 1978, per capita disposable income in China stood at only 171 with the United States even exceed- the largest elderly population on yuan. This figure soared to nearly ing 70 percent. In 2017, China’s the planet. From 2014 to 2050, the 26,000 yuan in 2017 and is now service industry accounted for 51.6 total spending of China’s elderly marching towards 30,000 yuan. In percent of its total GDP and its people is expected to grow to 106 the next 20 years, China’s middle-in- final consumption rate measured trillion yuan from four trillion come population will jump to 53.6 percent, leaving huge room for yuan, accounting for 33 percent of 630 million from the current 230 spending on services. the country’s GDP from the previ- million, which is bound to serve as The trend towards an aging ous eight percent. In the “silver the primary force for the country’s society is transforming China economy,” consumer demand for consumption upgrade. into the world’s most promis- senior-related industries such as Compared to developed coun- ing market for senior care indus- finance, healthcare, tourism and real tries, China still has plenty of tries. According to the 2014 Report estate will be huge. room for consumption upgrade. on the Development of China’s

In general, the service industry Silver Industry, by 2050, China’s The author is a professor and member in developed countries accounts elderly population will reach 480 of the Academic Committee of the for more than 70 percent of GDP, million, accounting for nearly 25 China Youth University of Political Studies. His major research fields include and the final consumption rate percent of the world’s total. By macroeconomics, the world economy and stands at more than 65 percent, then, the country will be home to China’s domestic demand.

CHINA PICTORIAL 41 FEATURES

Lego Building Blocks of Consumption Text by Ru Yuan

China’s rising middle-income group has made the country particularly attractive to Lego Group.

42 VOLUME 845 NOV · 2O18

October 13, 2018: A model of Beijing built with Lego bricks attracts many customers in MixC Shopping Mall, Shanghai. Toymaker Lego has seen big prospects in China in recent years. IC

n China today, the definition of Education center. In the 10-plus “toy” has changed tremendously classrooms, kids were doing differ- compared to four decades ago ent tasks under tutors’ instructions. when the country just began its While younger kids used Lego Ireform and opening up. Companion bricks to build castles, palaces and robots, model airplanes, and zoos, those who are eight or nine STEAM (short for “science, tech- years old were already using laptops nology, engineering, art, mathemat- to make their self-built Lego robots ics”) toys emerged one after another move according to instructions. to replace traditional plush and Enrolling in Lego courses is plastic toys. In conversations about costly. Annual tuition can exceed popular toys in the country today, 15,000 yuan for only one class Lego is always mentioned. Founded per week. According to figures in 1932, the Danish toymaker’s flag- from Beijing Bureau of Statistics, ship product is colorful interlock- the average monthly salary in ing plastic bricks. In recent years, Beijing stood at 8,467 yuan in 2017. the company has been working to However, the expensive price tags expand in the Chinese market. In haven’t scared away many parents. early November 2018, it participated “My boy started to study Lego as an exhibitor in the first China courses at five years old,” explained International Import Expo held in Carol Zhou, mother of seven-year- Shanghai. old Yun Yun. “Now he can make “We are confident about the robots perform tasks such as lift- Chinese market,” said Paul Huang, ing and grabbing a specific object.” general manager of Lego China. Yun Yun’s Lego education started “China is currently going through a with power machinery. Beginning consumption upgrade, and Chinese with application of levels, axles consumers are attaching greater and pulleys, Yun Yun soon learned importance to branding and quality. building structural models and Lego has plans to expand to more basic mechanical concepts such as Chinese cities in the near future.” intensity and stability before he was admitted to classes for designing Thriving Non- and constructing Lego robots. traditional Business Lego Group’s global revenue In late autumn, it is already pitch in 2017 wasn’t good. However, the dark by 7 p.m. in Beijing. However, same year, it realized double-digit Lego Town located in the Chaoyang revenue growth in China. This Park neighborhood in eastern growth not only came from the Beijing was still bustling with sales of Lego toys, but even more people and showered in lights. The from the group’s non-traditional first floor of the two-story Lego businesses such as Lego Education. Town building sells the brand’s vari- Against the backdrop of China’s ous products and offers space for consumption upgrade, the coun- customers to test out the toys, while try’s rising middle-income group the second floor serves as the Lego has created great opportunities for

CHINA PICTORIAL 43 FEATURES

department stores in China’s first- and second-tier cities. In the 21st century, after a marked improvement of both living standards and income of the Chinese people, Lego is investing more in the Chinese market. It has gradually accelerated its pace of branding and promotion in China and added interactive activities to attract a wider range of Chinese consumers. In 2007, Lego opened its first flagship store on the Chinese mainland in Beijing. Only a year later, a Lego certified store opened in Shanghai. In 2012, August 26, 2018: Two kids write code to make their robots move, in Hangzhou. Lego’s the Lego Town opened in Beijing, high-speed growth in China in recent years can be largely attributed to its non-traditional businesses such as Lego Education. IC with two thirds of its space devoted to customer interaction. In 2013, Lego consumer interaction areas opened in Shanghai stores. During the process, Lego successfully expanded its offerings from children’s toys to adult-oriented products. Cooperation with a number of popular intellectual properties including Star Wars, Harry Potter, Frozen and Jurassic World has introduced Lego to more Chinese teenagers and adults. With more disposable income, Chinese residents have helped Lego realize rapid annual sales growth and deeper explore the market of China’s second- and third-tier September 8, 2018: Using over two million Lego bricks, the Brick Live Animal Paradise cities. In November 2016, Lego exhibition at the National Stadium, Beijing, creates a unique world for both children and adults. VCG Group celebrated the opening of a new factory in Jiaxing, Zhejiang Province. Building its first Asian the company to develop. Parents Loving China factory in China aligned with Lego’s are enthusiastic about invest- In 1993, six decades after the long-term strategy of “staying close ing more in their kids’ education. company’s establishment, Lego to core markets.” The toymaker Moreover, after growing up in began to be sold on the Chinese aims to provide high-quality prod- the internet era, younger Chinese mainland. At that time, Lego toys, ucts to millions of consumers in parents born in the 1980s and priced from several dozen yuan to China and across Asia. 1990s attach greater importance to 1,000 yuan or more for one set, were well-rounded education and make certainly luxuries in China, where Great Market Potential more diverse choices. It is easy to the average monthly income still According to China Toy understand how Lego-branded measured only several hundred yuan Industry Review, revenue from education, which is closely linked back then. Long after Lego first the primary sector of China’s to STEAM education and innova- entered the Chinese market, the toy industry stood at nearly 236 tion, is attractive in their eyes. toys could only be found in upscale billion yuan in 2017, an increase

44 VOLUME 845 NOV · 2O18

A certified Lego store in Beijing. Lego Group is gradually expanding to more second- and third- of 8.5 percent on a year-on-year in China. By the end of 2018, the tier cities in China. VCG basis. As the second largest toy company will have up to 60 stores consumer in the world, China has across 15 Chinese cities, with the huge room for further develop- new stores mostly located in second- ment of the toy market. According and third-tier cities. to Euromonitor International, an Alongside brick-and-mortar independent provider of strategic stores, digitization is another field market research, toy sales in China Lego is looking at in China. In will realize an annual growth rate of January 2018, Lego announced a In the 21st century, after five to six percent over the next five plan to team up with one of China’s a marked improvement years. biggest internet service providers, of both living standards Against this backdrop, Lego Tencent, to carry out cooperation and income of the will clearly continue to expand in in various fields. In September, the China. In September 2018, a Lego two sides unveiled a sandbox game Chinese people, Lego is flagship store opened in Shanghai, for Chinese players, which will be investing more in the and another is planned for Beijing released at the end of this year. “We Chinese market. It has in early 2019. Niels B. Christiansen, believe the Chinese market is huge gradually accelerated CEO of Lego, noted that to date, and hope that more Chinese kids its pace of branding and Lego has established 36 certi- and Lego fans will want to play with promotion in China. fied stores via retail partnerships our products,” added Huang.

CHINA PICTORIAL 45 FEATURES

CIIEInnovation in International Trade Text by Wei Jinshen

China is taking concrete action to promote economic globalization and trade liberalization.

s the economic global- action in support of economic ization process under- globalization and trade liberalization. goes profound changes Firstly, the CIIE echoes the and the global economic cooperative principle of the Belt Agovernance system undertakes and Road Initiative, namely, “exten- significant transformations, supply sive consultation, joint contribution of international public goods is and shared benefits.” As the first lagging far behind demand. As a import-themed international expo China’s upgraded concept of responsible major country, China in the world, the inception of the all-round opening up. This year has presented the Belt and Road CIIE marks an innovation mile- marks the 40th anniversary of the Initiative to the international stone in the history of international country’s reform and opening up, community and taken concrete trade. During the event, partici- as well as the fifth anniversary of action to put it into practice. The pants will exchange views on invest- the introduction of its Belt and country is about to host the first ment and trade cooperation, carry Road Initiative. In this context, China International Import Expo out project alignment and share the hosting the CIIE represents a major (CIIE), testifying to the Chinese fruits of cooperation. The Chinese step in China’s upgraded idea of conceptual and practical innova- government has vowed to import all-round opening up. The Belt and tion in the supply of international commodities worth US$8 trillion Road Initiative is open to all coun- public goods. over the next five years. As the host tries along the routes as well as of the CIIE, China will provide other economies rather than stay- Innovation in Supply of two free standard exhibition booths ing an “exclusive club.” Promoting International Public Goods for each participating underdevel- all-round opening up means China From the perspective of concep- oped country in which they can seeks opening up both at home tual innovation in the supply of inter- display quality indigenous specialty and abroad, continues opening its national public goods, hosting the products such as clothes, consumer door to both developed and devel- CIIE demonstrates China’s new ideas goods, food, agricultural products, oping countries and places equal on cooperation, opening up and and health products as well as tour- emphasis on “bringing in” and development, as well as its sincere ism resources and highlights of their “going global” to break new ground willingness to open up the domestic respective cultures. in opening China further through market, which represents concrete Secondly, the CIIE showcases links both eastward and westward,

46 VOLUME 845 NOV · 2O18

The 2017 South and Southeast Asia Commodity Expo and Investment Fair, held at the Dianchi International Convention and Exhibition Center in Kunming City, Yunnan Province, attracted more than 4,000 enterprises from 86 countries and regions, including 33 countries and regions along the Belt and Road routes. VCG across land and over sea, with coordinated development of the supply channels of international constant expansion of the width global economy to meet the needs public goods. The CIIE combines and depth of its opening. of economic development in today’s national exhibitions, enterprise Finally, the CIIE showcases world. Through hosting the CIIE to exhibitions and the Hongqiao China’s idea of promoting balanced, expand imports, China is encourag- International Trade Forum. The coordinated development. The Belt ing other countries to catch the “fast national exhibitions cover space and Road Initiative emphasizes train” of its rapid economic devel- of some 30,000 square meters and not only balanced development of opment to increase momentum in focus on comprehensively display- different regions in the country balanced, coordinated development. ing the trade and investment of but also coordinated development participating nations. The enter- around the world. It has expanded New Channels for prise exhibitions cover about the channels of China’s opening International Public Goods 270,000 square meters divided up, provided historic opportunities Hosting the CIIE is an import- into two sections: goods trade for the development and opening ant innovative Chinese practice and services trade. The “goods up of central and western parts of to actively explore new models to trade” section features six exhibi- China, and injected new impetus supply international public goods. tion zones for consumer electronics into economic growth and social Firstly, through hosting the and household appliances, cloth- progress in those regions. The world’s first international import ing and other daily consumer prod- Belt and Road Initiative advocates expo, China is working to expand ucts, automobiles, intelligent and

CHINA PICTORIAL 47 FEATURES

Located in Xishuangbanna Dai Autonomous Prefecture, Yunnan Province, Mohan is a border town connecting China and Laos. As an important passage for economic, trade and social exchange between China and Laos, Thailand and even the entire ASEAN region, it completes a circuit enabling ASEAN countries’ participation in the China-proposed Belt and Road Initiative. VCG high-tech equipment, food and providing development opportuni- demonstrates China’s huge potential agricultural products, and medical ties and jobs for them and exempt- in the demand for quality goods and instruments and healthcare prod- ing least-developed countries from services. The “goods trade” section ucts. The Hongqiao International the exhibition fee to help them of enterprise exhibitions offers Trade Forum comprises an open- participate in and benefit from the special exhibition zones for food ing ceremony and three parallel process of globalization. By focusing and agricultural products as well as sessions with focus on topics such on the realization of common inter- for medical instruments and health- as “Trade and Opening Up,” “Trade ests, the CIIE has attracted enthu- care products. Appropriate products and Innovation” and “Trade and siastic participation from domestic will also be displayed in exhibition Investment.” and international exhibitors alike. zones for clothing and other daily Secondly, the CIIE aims to mobi- This is key to its success. consumer products, automobiles lize all countries to share common Finally, the CIIE aims to and other sectors closely related to interests in the supply of inter- promote supply-side reform and improving people’s living standards. national public goods to balance meet people’s demands for a better As an important measure to national interests and global inter- life. China is hosting the expo with implement the Belt and Road ests. So far, a total of 80 countries, the intent to enhance the quality of Initiative, the CIIE evidences China’s including 21 developed countries, the supply structure, fulfill people’s conceptual and practical innova- 50 developing countries and nine longing for better lives, optimize the tion in the provision of international least-developed countries, as well consumption structure and advance public goods, marking a firm step as three international organizations, a consumption upgrade. toward building a community with a have confirmed their participation In recent years, Chinese tour- shared future for humanity. in the national exhibitions section ists have stunned the world with of the CIIE. Through increasing their tremendous overseas spending. The author is research fellow at the School imports, China is further opening This testifies to the great consump- of Russian and Eurasian Studies, Shanghai its market to developing countries, tion ability of Chinese people and International Studies University.

48 VOLUME 845 NOV · 2O18 The Logistics of China’s Open Market Text by Ling Chen

It is a significant move for the Chinese government to organize CIIE to firmly support trade liberalization and actively open the Chinese market to the world.

ussian Railways Logistics CP: What will your (RZD Logistics) is the company show at the largest multimodal logis- event? And what do you tics operator in Russia, expect from CIIE? RCIS countries and the Baltic states. Valentik: We are planning to The company was founded in deliver maximum information to 2010 with the mission of devel- both Chinese and international oping the logistics segment of customers on our international Russian Railways. Designated logistics services. At this event by Russian Railways as the sole in Shanghai, we will showcase a coordinator of international rail- number of high-speed delivery road transit routes, the company services in which we see great is an important partner of China Viacheslav Valentik, potential. For example, we are Railway Express (CR Express), an CEO of RZD Logistics. planning to introduce our RailJet organization within the Belt and and Panda Land Bridge services. Road Initiative framework aiming This June, Russian and Chinese to connect China to Europe. In anticipation of the company’s arrival at the upcoming China International Import Expo (CIIE) to be held in Shanghai, Viacheslav Valentik, CEO of RZD Logistics, granted an exclusive interview to China Pictorial (CP).

CP: Why do you think China is organizing CIIE? Valentik: CIIE will act as an open platform for China to present its national development achievements to participating countries, and it will also shine light on the readiness of all participants to Held annually in Harbin, capital of northeastern China’s Heilongjiang Province, the China- openly discuss major issues related to Russia Expo has become an efficient platform for exhibitors to display high-end and new foreign trade and the world economy. products. VCG

CHINA PICTORIAL 49 FEATURES

Railways signed a memorandum on scheduled container train service on each and every one of them. We can arranging high-speed rail freight the Russia-China route. The service expertly transport cargo from any service along the China-Russia- starts on a train from Moscow, point in Russia or Europe to any Europe route. RZD Logistics and followed by trains from Samara, point in China, and vice versa. CR Express were designated to Kazan and Krasnoyarsk. Quickly, carry out the terms of the memoran- the Panda Land Bridge opened a CP: When did your company dum, and by July we had managed door for Russian goods to enter enter the Chinese market? Did to launch RailJet. RailJet is a weekly the Chinese market. This service you encounter any difficulties? service focused on transporting is something everyone at this expo Valentik: From the very start, cargo in rail cars. By rail, it takes needs to know about. we have considered China one of only six days to cover the distance I am sure that we will find new our major business partners. Several between Beijing and Moscow. business partners both in China years before the Belt and Road Another flagship prod- and other countries at CIIE, and we Initiative was proposed, we were uct—Panda Land Bridge—is our will deliver high-quality services to already arranging delivery of cargo

The largest multimodal logistics operator in Russia, RZD Logistics attended the Transport Logistic China 2018 in Shanghai, with an eye on seeking greater access to the Chinese market. by Yang Jie

50 VOLUME 845 NOV · 2O18

from China to Russia and Europe by rail. Most difficulties were related to different shipping documents used in China, Russia and Europe as well as misunderstand- ings on requirements of respective customs authorities. We faced problems with mistakes on shipping documents, so the documents were constantly revised and reissued, which took time and influenced the speed of delivery. Since then, all the countries along the Belt and Road routes have achieved considerable

RZD Logistics was designated as the overseas railway operator for the CR Express train from China’s Changsha to Germany’s Duisburg in July 2018. by Yang Jie

progress in terms of standardiz- support from China since the ing documentation. Time spent at introduction of the Belt and Road customs when crossing borders has Initiative, we all have seen expo- significantly decreased. And now nential growth in transit cargo we are all close to implementing flow. Now all countries along the electronic document flow to make Belt and Road including Russia this transit process seamless. are benefiting because trains are running through their territories CP: Russia is one of the and business ties between each and most active participants in every one along the routes are being the Belt and Road Initiative. constantly strengthened. How do you think Russia has benefited from the initiative? CP: How do you think Valentik: Proposed by the CIIE can serve countries Chinese government, the Belt and along the Belt and Road Road Initiative is showcasing new and even the world? perspectives on the development Valentik: The idea to arrange the of international trade. In 2017 this first expo involving importing to concept went global, uniting dozens China is already a big step towards of countries pursuing economic the future of international logistics. partnerships and incentivizing Until recently, China was considered investors on several continents. The a major export economy. By hosting concerted efforts of China, Russia this import expo, China is opening a and Europe have led to an improved new door for other countries to take business climate and more highly a hard look at China as it becomes developed economic ties between the biggest consumer market. This our countries. large-scale event is answering the Several years ago, rail delivery demands of the large-scale Chinese of cargo from China to Europe economy, and we are sure this event through Russia could not compete will boost further development of with deep-sea services due to speed trade and business ties between all and pricing. But with the strong participating countries.

CHINA PICTORIAL 51 FEATURES

Belt and Road Trade Figures, 2013-2017

Edited by Yin Xing

n September 2013, Chinese President Xi Jinping overall foreign trade. China has become the largest trading proposed the Silk Road Economic Belt followed by the partner for 25 nations and signed or updated five free trade introduction of the 21st-Century Maritime Silk Road agreements with 13 nations along the routes. Also over the that October, which together became known as the Belt past five years, China’s direct investment in countries along Iand Road Initiative. Over the five years spanning from the Belt and Road has exceeded US$70 billion at an annual 2013 to 2017, the total trade volume between China and growth rate of 7.2 percent. The value of new contracted countries along the Belt and Road routes reached US$6.98 projects in those countries surpassed US$500 billion at an trillion with a growth rate much faster than that of China’s annual growth rate of 19.2 percent.

Trade between China and 71 Countries along the Belt and Road (US$100 million)

2013 2014 2015 2016 2017

Import 7,123.1 7,288.9 6,007.2 5,561.6 6,660.5

Export 6,980 7,737.4 7,520.8 7,134.2 7,742.6

Total Volume 14,103.1 15,026.3 13,528.0 12,695.8 14,403.1

Total Foreign Trade 41,600 31,845.4 34,652.2 37,021.6 39,787.6

Ratio 33.9% 47.2% 39.0% 34.3% 36.2%

China’s Top Ten Trading Partners along the Belt and Road, 2017 In 2017, China’s top ten trading partners along the Belt between China and countries along the Belt and Road. and Road were South Korea, Vietnam, Malaysia, India, Russia, Exceptionally high growth was seen between China Thailand, Singapore, Indonesia, the Philippines and Saudi and countries including Qatar, Montenegro, Mongolia and Arabia. The total volume of trade between China and those Kazakhstan, with an increase of over 35 percent compared to the countries accounted for 68.9 percent of the total trade volume previous year.

China’s Top Ten Trading Partners along the Belt and Road in 2017 (US$1,000)

Import & Year-on-Year Year-on-Year Year-on-Year Country/Region Export Import Growth Rate of Growth Rate of Growth Rate of Export Import & Export Export Import

South Korea 280,259,588 102,751,408 177,508,180 10.9% 9.6% 11.7%

Vietnam 121,324,423 70,993,807 50,330,616 23.5% 16.2% 35.4%

Malaysia 96,026,757 41,724,515 54,302,242 10.5% 10.8% 10.2%

India 84,407,737 68,063,699 16,344,038 20.3% 16.5% 38.9%

Russia 84,094,672 42,897,438 41,197,234 20.8% 14.8% 27.7%

52 VOLUME 845 NOV · 2O18

Import & Year-on-Year Year-on-Year Year-on-Year Country/Region Export Import Growth Rate of Growth Rate of Growth Rate of Export Import & Export Export Import

Thailand 80,286,579 38,706,384 41,580,195 6% 4.1% 7.9%

Singapore 79,242,948 45,019,639 34,223,309 12.4% 1.1% 31.6%

Indonesia 63,316,354 34,763,986 28,552,368 18.3% 8.2% 33.3%

Philippines 51,275,061 32,044,392 19,230,669 8.5% 7.4% 10.5%

Saudi Arabia 49,983,779 18,219,903 31,763,876 18.2% -2.3% 34.4%

Top Ten Sources of Chinese Imports along the Belt and Road, 2017 In 2017, the top ten exporters to China along the Belt along the Belt and Road. and Road were South Korea, Malaysia, Vietnam, Thailand, Exceptionally fast growth in exports to China came from East Russia, Singapore, Saudi Arabia, Indonesia, South Africa and Timor, Yemen, Maldives, Egypt and Montenegro, all expanding by the Philippines. The combined value of their exports to China over 100 percent. accounted for 75.5 percent of China’s imports from all nations

Top Ten Destinations for Chinese Exports along the Belt and Road, 2017 In 2017, the top ten destinations for Chinese exports China’s fastest-growing export destinations along the routes along the Belt and Road were South Korea, Vietnam, India, include Laos, Kazakhstan, Uzbekistan, Moldova, Slovenia, Singapore, Russia, Malaysia, Thailand, Indonesia, the Bhutan, Serbia, Armenia, Mongolia, Afghanistan, Lithuania, Philippines and the United Arab Emirates. Together, they Bosnia and Herzegovina, Georgia, Montenegro and Cambodia, imported 65.6 percent of the total value of China’s exports to which all increased their imports from China by more than 20 nations along the Belt and Road. percent from the previous year. Trade Structure In 2017, the exported commodities from China to countries along the Belt and Road mainly included fossil fuels, mineral oils along the Belt and Road were dominated by boilers, machinery, and related products, bituminous substances and mineral waxes, mechanical appliances and parts, electrical equipment and parts, electrical equipment and parts, audio equipment and television audio recorders and television equipment, which accounted for equipment, which accounted for 50.3 percent of the total value 38.2 percent of all exports from China to those countries. of China’s imports from those nations. In 2017, the commodities imported by China from nations

Main Trade Contributors In terms of trade value, private Chinese companies were the In terms of growth rate of trade volume, state-owned enter- primary contributors. prises led the trend with a year-on-year growth of 24.5 percent, In 2017, trade volume between China’s private enterprises contributing trade volume of US$279.6 billion with countries and countries along the Belt and Road reached US$620 billion, along the Belt and Road in 2017, followed by private companies accounting for 43 percent of the total, followed by foreign- (12.1%) and foreign-funded companies (10.2%). funded enterprises (36.6%) and state-owned enterprises (19.4%).

Types of Trading General trade dominated trading between China and coun- Petty trade in the border areas between China and countries along the Belt and Road. In 2017, the value of general tries along the Belt and Road saw a particularly rapid growth. In trade reached US$840.76 billion, accounting for 58.4 percent 2017, its value reached US$38 billion, up by 17.3 percent from of the total value, followed by processing trade with imported 2016, followed by general trade (16.1%), processing trade with materials (19.5%), other trades (14.5%), processing and assem- imported materials (12.9%), other trades (10.3%) and processing bly with supplied materials (5.0%) and petty trade in the border and assembly with supplied materials, which actually dropped by areas (2.6%). 4.5 percent.

Sources: Belt and Road Big Data Center under the State Information Center & Belt and Road Portal

CHINA PICTORIAL 53 FEATURES Open Global Economy for All Text by Li Gang

Development is not a zero-sum game—it should foster the common progress of all countries through openness and cooperation.

ver the past 40 years of Trade remains the major engine establishing administrative meth- reform and opening up, driving global economic growth. ods that meet the strictest interna- China’s overall national However, alongside the rise of tional investment and trade rules. strength has constantly anti-globalization mentalities, some China is opening up by advanc- Ogrown. Today, the country has developed countries have turned to ing the sustainable development of become the world’s second largest trade protectionism. Unilateralist, foreign trade, accelerating promo- economy and largest cargo trader, protectionist and strong-armed tion of new competitive advantages and ranks at the tops in terms measures taken by a few countries in international trade, enhancing of both inbound and outbound have resulted in tariff and trade trade facilitation, boosting the investment. China has become wars, severely undermining the development of services trade, and deeply integrated in the world current global economic and trade improving the quality and efficiency economy and is playing an increas- order designed around the rules of foreign trade. It is innovating ingly important role in economic of the World Trade Organization foreign investment management globalization. (WTO) and jeopardizing global systems, unifying laws and regu- Currently, economic global- economic growth. lations for domestic and foreign ization faces both opportunities Today, China’s economy is shift- capital, improving work in devel- and challenges. The popularity of ing toward high-quality develop- oping pilot free trade zones, and new technologies such as big data, ment and entering a crucial stage exploring construction of free trade cloud computing, the Internet of of transforming its development ports. China seeks to innovate over- Things, intelligent manufacturing, mode, optimizing its economic seas investment cooperation and and blockchain has prompted the structure and converting growth strengthen the service and support- emergence of many new industries, engines. The major source of its ing system for “going global” while new market opportunities, and new economic growth is gradually shift- further optimizing the business business modes, injecting enor- ing from investment to consump- environment, advancing reform of mous impetus into global economic tion and innovation. Alongside its the commercial system, reducing recovery. The international divi- deepened marketization, indus- administrative examination and sion of labor and global transaction trialization and internationaliza- approval procedures, transforming systems are witnessing accelerated tion, China has reached at a new the functions of the government evolution, and countries around historic starting point of open- and unleashing the full potential of the world are participating in the ing up. New measures are about the market. process with their own comparative to be taken to further open the The drive to create a new land- and competitive advantages. The country up, such as actively build- scape for comprehensive opening development of digital technolo- ing new open economic systems, up should be centered on imple- gies has driven trade in goods and creating a favorable market envi- mentation of the Belt and Road services to increase exponentially. ronment featuring rule of law, and Initiative with the goal of building

54 VOLUME 845 NOV · 2O18

October 16, 2018: The 124th China Import and Export Fair, also known as the Canton Fair, kicks off in Guangzhou, capital of Guangdong Province, attracting more than 25,000 enterprises from both China and abroad to exhibit products. VCG

countries around the world, China can enhance the quality and efficiency of its economic development, elevate its all-round productivity and expand its economic strength. In terms of global economic governance, China will push economic globalization toward more open, inclusive, balanced, and win-win trends. Only openness can better facilitate communication, cooperation and common development of all countries in the world. Developed and developing a new platform for international enforcement of intellectual prop- countries should work together to cooperation and forming a global erty rights and considerably increase achieve coordinated development network involving trade, investment, penalties for breaking the law. and establish a more rational inter- financing, production and services. It is also vital for China to est distribution system that prevents Specifically, China first needs to actively expand its imports. With discriminatory trade and investment substantially loosen market access the first China International Import practices and combats trade and restrictions through measures such Expo to be held in Shanghai as an investment protectionism. as lifting or abolishing limitations opportunity, China will further Development is not a zero- related to foreign equity ratios in lower import tariffs for automo- sum game—it should tend toward fields like general manufacturing, biles and certain consumer goods, win-win results achieved through the advanced service industry, bank- increase imports of special advan- openness and cooperation. China ing, insurance and futures, lowering tageous products and services will continue to resolutely uphold thresholds for the establishment of with the highest demand among and promote the reform and foreign-funded financial institutions Chinese consumers and accel- improvement of the multilateral and expanding the business scope erate the process of joining the trade system and accelerate the of foreign-funded financial institu- WTO Agreement on Government healthy development of global trade tions in China. Procurement. and investment to propel global Moreover, China needs to create In the future, China’s door of economic growth and enable an a more attractive investment envi- opening up will not close but only open global economy to play an ronment. Relevant measures include become wider and wider. Only increasingly significant role in strengthening alignment with inter- through constantly expanding building a community with a shared national economic and trade rules, opening up and adopting policies future for mankind. enhancing policy transparency, to liberalize and facilitate high-level and fully implementing pre-estab- trade and investment can the nation lishment national treatment with promote international exchange The author is vice president and a negative list approach. China in various economic sectors. research fellow of the Chinese Academy of International Trade and Economic also needs to strengthen intellec- Through communication, cooper- Cooperation under China’s Ministry of tual property protection, enhance ation and competition with other Commerce.

CHINA PICTORIAL 55 FEATURES

funded financial institutions, expanded their business scopes and rolled out measures Standard to widen market access for foreign companies. What does Standard Chartered Bank think of these new policies? Chartered: Zhu: Standard Chartered Bank welcomes the introduction and implementation of policies on deep- ening the country’s opening up and Supporting relaxing market access in the financial sector. These proactive measures will expand foreign financial institutions’ business operations in China Chinese and accelerate the reform of Chinese banks. We have been greatly encouraged by these measures along with other foreign banks. Further expan- Enterprises sion of the financial sector not only reflects China’s opening up at Text by Hu Zhoumeng a higher level, but also promotes Trade, the Belt and Road Initiative, and the 160th anniversary of deeper integration of international Standard Chartered’s uninterrupted operation in China are the bank’s and domestic markets. highlights at the China International Import Expo. Thanks to those opening-up policies, China’s financial industry has witnessed great changes, one of which is the introduction of various ince Standard Chartered out and overseas enterprises enter. innovative financial products and Bank set up its first Chinese Recently, Zhu Yaming, vice presi- services. Standard Chartered Bank branch in Shanghai in 1858, dent and managing director of the has offered featured financial services it has witnessed the great Personal Finance Department of including trade financing, structured Seconomic development in contem- Standard Chartered Bank (China) finance, international trade settle- porary China. Especially since 1978, Limited, was interviewed by China ment, foreign exchange and deriva- the country’s reform and opening Pictorial (CP). She said that Standard tives, cash management and wealth up has provided huge opportunities Chartered Bank will focus on advan- management to meet the needs of for the development of the bank. tageous fields in line with the future the Chinese market. Standard Chartered has one of the trajectory of China’s economy largest foreign bank networks in including the Belt and Road Initiative, CP: Since the Belt and Road China. In 2007, Standard Chartered the internationalization of RMB, Initiative was introduced five Bank (China) Limited became one the opening up of financial markets, years ago, more and more of the first batch of foreign-funded the development of small and medi- Chinese enterprises have begun local corporate banks. Over the um-sized enterprises (SMEs), and to explore overseas markets and past decade, Standard Chartered the continuous expansion of the dock with overseas partners. has opened 100 outlets across 30 middle-income group. How will Standard Chartered Chinese cities, employing more than Bank help these enterprises? 6,000 people. CP: In 2018, in response Zhu: Standard Chartered Bank As China opened its door to the to the national policy of has long considered the Belt and outside world, Standard Chartered further opening up in the Road Initiative the focus of its strat- Bank began actively supporting financial sector, China egy. Nearly 70 percent of Standard cross-border trade and investment relaxed restrictions on the Chartered Bank’s global branches are by helping Chinese enterprises reach establishment of foreign- in countries and regions involved in

56 VOLUME 845 NOV · 2O18

the Belt and Road Initiative. In most gain more market insights and valu- of those countries and regions, we able suggestions. have operated for more than 100 years and have a profound under- CP: RMB has become the standing of local policies, economies world’s third-largest trade and cultural environments. In 2017, financing currency and we participated in 50 projects, more the sixth largest payment than half of which were in Africa currency. Its function as a and another quarter in South Asia. trade, payment and financing Over the past five years, Standard currency is increasing. How Chartered has been providing innova- Zhu Yaming, vice president and managing is Standard Chartered Bank director of the Personal Finance Department tive and high-quality financial prod- of Standard Chartered Bank (China) Limited. adapting to this new trend? ucts and services for Chinese enter- courtesy of Standard Chartered Bank Zhu: Standard Chartered Bank prises participating in the projects. is at the forefront in the field of Standard Chartered has also estab- summarized in four aspects: short- RMB internationalization. We have lished close partnerships with China’s term trade financing, cross-bor- 11 foreign currency direct trad- policy banks, commercial banks, der financing, foreign exchange ing market qualifications, and we import and export credit insur- risk management, and regional risk are one of the first banks to be ance institutions, multilateral finan- management. granted direct access to China’s cial institutions and online financial First, foreign suppliers normally Cross-border Interbank Payment services institutions, and carried out require importers to pay deposits or System. We are also the first interna- substantive cooperation with them. prepay for goods. Capital demand tional bank to provide RMB clear- can be met by financing products. ing services and one of the largest CP: What difficulties are faced International banks can help compa- RMB clearing institutions in China. by SMEs in financing? How nies utilize capital from home and Standard Chartered Bank operates does Standard Chartered Bank abroad, reduce financing costs and a strong network of onshore and help solve these problems? expand financing channels. offshore RMB services in more than Zhu: Standard Chartered China Second, international banks can 36 countries and regions. set up a special SME unit in 2003 facilitate seamless transactions for and has been cultivating SME busi- buyers and suppliers in interna- CP: What will Standard ness in China for 15 years. Many tional trade, avoiding delays or errors Chartered Bank display SMEs have difficulties securing between the two parties in other- at the China International loans because they cannot provide wise cross-bank payments, which Import Expo (CIIE)? suitable collateral. For such light can cause companies to lose business Zhu: Standard Chartered Bank assets enterprises, we will compre- opportunities. is one of the first enterprises to hensively inspect the business model Third, trading companies are pledge to participate in the CIIE. of the enterprises, the development impacted by exchange rate fluctua- Our booth at the expo will focus on of the industry, existing contract tions, but experienced international three main themes: trade, the Belt orders, abilities of leaders and other banks can provide comprehensive and Road Initiative, and the 160th things. We solve the financing prob- foreign exchange solutions includ- anniversary of its operation in China. lems of these enterprises through ing money exchange and transfer, Standard Chartered Bank will release the comprehensive rating of enter- forward exchange transactions and a customized trade financing plan prise credit and providing non-mort- foreign exchange swaps that can help for import companies during the gage loans for SMEs. companies control exchange rate risk. expo. One thing deeply rooted in Fourth, it is difficult for domes- Standard Chartered Bank’s DNA CP: What risks are faced tic companies to assess overseas is supporting cross-border trade. by Chinese enterprises in risk when importing goods from Currently, we have rich experience international trade? How does a foreign land. They are subjected and resources in providing short- Standard Chartered Bank help to unforeseen market changes and term trade financing and foreign these businesses reduce risks? may fail to secure stable sources of exchange management, and we are Zhu: The services we provide procurement. With the help of banks glad to support exhibitors and buyers for import businesses can be with global networks, companies can at the expo with our services.

CHINA PICTORIAL 57 ECOLOGY

Bittersweet Typhoon Mangkhut Text by Zhang Yinfeng

The greatest reason behind the increase of typhoons might be global warming caused by anthropogenic greenhouse gases.

58 VOLUME 845 NOV · 2O18

Zhuang Autonomous Region were markets and production, involving affected by Mangkhut. Five people the largest range and number of died, one went missing and 1.6 people in the history of Guangdong million people were evacuated. Province. Compared to Typhoon Hato in When Mangkhut was still swell- 2017 which had similar wind velocity, ing in the Pacific Ocean area, the casualties and property losses caused media were reporting on the power by Mangkhut were considerably of the typhoon, and the public lower, an encouraging development received emergency and disaster-pre- for typhoon prevention, disaster vention text messages. In less-de- reduction and future relief efforts. veloped and remote mountainous areas, broadcasting trucks circu- Mobilizing All of Society lated the information, and members Most typhoons tend to land in of village committees went door- early morning, but Mangkhut landed to-door to warn villagers. At in the afternoon, directly affecting Hengshan fishing harbor in Wencun production and life. As a result, for Town, Guangdong’s Taishan City, the first time since the establishment more than 100 fishing boat crew of a warning signal system in 2000, members were reluctant to disem- the Guangdong meteorological bark. They were finally persuaded department issued typhoon warn- just four hours before the landing of ing signals in all cities and counties Mangkhut. of the province and announced the “When the Central Meteoro suspension of schools, businesses, logical Observatory makes a

September 17, 2018: Near the Wanbo Center in Guangzhou, a couple of parents fasten their child in a buggy and drag it in the heavy rain and wind. Mangkhut brought continuous precipitation to Guangdong Province. VCG

September 18, 2018: After Typhoon Mangkhut blew through China, several cities suffered varying degrees of damage. VCG

yphoon Mangkhut, report- edly one of the most intense storms in the history of Guangdong Province, landed Ton the coast of Taishan in Jiangmen City with a speed of 45 meters per second at 5 p.m. local time on September 16, 2018. During the storm’s three-day journey through China, nearly three million people in Guangdong, Hainan, Hunan and Guizhou provinces and Guangxi

CHINA PICTORIAL 59 ECOLOGY

September 18, 2018: Soon after the typhoon, a worker cleans up a fallen tree caused by Mangkhut in Gaoming District, Foshan City, Guangdong Province. VCG typhoon warning, the areas expected disasters caused by the rainstorm. to be affected start to prepare So when Mangkhut delivered heavy countermeasures according to the rains to Guangzhou, capital of predicted path and intensity of the Guangdong Province, local people typhoon,” explained Zhao Hui, were prepared, and everything was professor of oceanography and under control. meteorology at Guangdong Ocean “Long before the typhoon University. “After the typhoon lands, landed, we knew that Mangkhut maintenance teams at all levels (such would bring heavy rains,” remarked Compared to Typhoon Hato as workers responsible for emer- Qian Qifeng, a senior engineer at the in 2017 which had similar gency repair of power grids and Central Meteorological Observatory, wind velocity, casualties water pipes), armed police officers adding that residual clouds often and property losses and soldiers, firefighters and other result in precipitation, causing some caused by Mangkhut were personnel are all on high alert.” typhoons to make another run. considerably lower, an In addition to the rainstorm warning, the observatory also issued Stronger and More Frequent? encouraging development a warning about potential landslides In 2018, most of the public for typhoon prevention, and flooding, cautioning some high- started feeling that typhoons were disaster reduction and risk areas to watch for secondary becoming more frequent. “This future relief efforts.

60 VOLUME 845 NOV · 2O18

September 16, 2018: Damaged windows of a One Harbourfront office tower following Typhoon Mangkhut in Hong Kong. VCG

explained: “The fundamental cause of typhoons still puzzles meteorologists. After more than 60 years of research, consensus has been reached on the necessary conditions for formation, but all of the necessary conditions are still unknown. This creates difficulties in forecast- ing typhoons. The most advanced computer can be used to predict the track of a typhoon relatively accurately, but the intensity of typhoon will be greatly affected by local warm currents and is thus difficult to predict.” The IPCC issued a new report in Incheon, South Korea, on October 8, according to which it will be near impossible to keep global warming year’s monsoon season was stronger controversy among meteorologists within 1.5 degrees Celsius due to compared to previous years,” admit- over future trends in the number ongoing industrialization. Warming ted Qian Qifeng. “Indeed, typhoons of hurricanes and typhoons, most of the earth more than 1.5 or even are striking more frequently. As of scholars agree that the damage 2 degrees Celsius will likely lead September 18, 2018, ten typhoons caused by typhoons (such as floods to dire consequences. Given the had made landfall in China.” and windstorms) will increase. The accumulated carbon emissions, the As early as 2005, experts includ- Intergovernmental Panel on Climate report warns, “At the current rate, ing American professor Peter John Change (IPCC) believes that global global warming could reach 1.5 Webster from the School of Earth warming has contributed to rising degrees Celsius sometime between and Atmospheric Science at Georgia seawater temperatures and sea 2030 and 2052.” Intitute of Technology noted in levels, which has provided favor- As Mangkhut approached, Science magazine that the number able conditions for typhoons to alert messages sent to residents of typhoons had increased by 80 rage. The vast majority of experts in in Guangdong Province specifi- percent in 30 years. In 2015, the climate science agree that the great- cally urged people to “have rever- U.S. Environmental Protection est reason behind the increase of ence for the power of nature.” The Agency announced that the power typhoons is global warming caused phrase is not only meant to inspire dissipation index of Atlantic hurri- by anthropogenic greenhouse gases. disaster prevention, but also to canes had risen significantly over Zhao Ang, director of Rock consolidate everyday kindness the past three decades. Despite the Environment and Energy Institute, towards nature.

CHINA PICTORIAL 61 SOCIETY

Idol Training The Road to Fame Text by Du Wen Photographs by Mai Tian

Increasing numbers of Chinese youngsters are pursuing dreams of becoming pop idols, prompting the emergence of the “idol training” industry in China.

hen asked about their favorite pop stars, most Chinese youngsters in the 1990s Wwould have named singers from Hong Kong or Taiwan. During the early aughts, the answer was frequently some South Korean or Japanese idols or pop bands before expanding to cover Western household names such as Taylor Swift and Justin Bieber. In contemporary China, “idol” has become a term to refer to an attractive pop star who gained fame as the winner of a song or dance contest. Most try to extend their time in the spotlight as long as possible by appearing on reality shows and audition for film and television roles, through which they can amass enormous fan bases of Thanks to her on-camera experience and Mandarin fluency, Wu Qingli (left) was named hostess of the quarterly performance for the second time. Generally, an entertainment agency will teenagers and young adults. strictly control the exposure of its trainees before their debuts. In 2018, the popularity of Chinese mainland reality shows emergence of the “idol training” she ventured to Beijing alone in featuring the “idol training” mode industry in China. May 2018, turning a new page in originating in Japan and South her life. Korea has become a craze that is Tough Road to Stardom In Beijing, Wu passed the hard to avoid witnessing on tele- Wu Qingli is a 19-year-old recruitment exam of an enter- vision sets across China. This Hong Kong citizen who grew up in tainment agency and became a mode aims to “produce” pop Shenzhen. She used to work part- trainee—a necessary step for idols through months or even time as a model while in school. the overwhelming majority of years of arduous training of young “Hong Kong is too small to really youngsters hoping for a career performers. Market analysts have make it big,” she lamented. With a in the entertainment industry. reported that the trend heralds the dream of becoming an idol trainee, Trainees are subjected to arduous

62 VOLUME 845 NOV · 2O18

According to iResearch, a market consulting company, China’s pop idol market is predicted to reach 100 billion yuan (US$14.4 billion) by 2020. training: From Monday to Friday, experience and Mandarin fluency, entertainment industry before Wu receives instruction on vocal the agency named her hostess of the becoming a trainee. “As a child, I music, dance, fitness and on-cam- quarterly performance, which gives studied the violin and dance and era training from day to night. her greater exposure than other dreamed of becoming an artist,” he She averages four classes per day, trainees. Generally, an entertain- recalled. “Following my parents’ each lasting two hours. Moreover, ment agency will strictly control the wishes, I majored in computer trainees like her have to face diffi- exposure of its trainees. However, it science, despite having little inter- cult weekly, monthly, quarterly and will also recommend qualified train- est in it.” semi-yearly exams, any of which ees to relevant talent competitions. Duan wasn’t happy in college. can result in expulsion. Unlike Wu, 21-year-old Duan “As a technical college, my school Considering Wu’s on-camera Yaoqi was a total outsider to the didn’t have any sort of dance

CHINA PICTORIAL 63 SOCIETY association. I had to learn dance Fast-growing Market numbers of boy bands led by South at an after-school training class.” If Wu and Duan finish train- Korea’s H.O.T. have gradually After careful consideration, he ing and excel in every examination, gained popularity. Typically, a boy dropped out of college as a junior their agency will arrange their offi- band includes at least a dancer, a and trekked from his hometown cial debuts based on their strengths vocal singer and a rapper. of Taiyuan to Beijing, where he and the market situation. Despite Market analysts trace the Chinese became a trainee in an entertain- their promising career prospects, mainland’s pop idol market’s emer- ment agency. they must first endure rigorous gence to 2012. Despite the fact that a After months of training, Duan’s training and survive brutal knock- few trainees returning from overseas singing and dancing skills improved out exams. Chinese idol trainees considerably. At a recent public face enormous pressure although Idol trainees take a break. Due to limited performance, he performed two the situation isn’t yet quite as bad as time and social networks, many trainees’ only friends are peers at the same entertainment dances. However, life as a trainee in South Korea, where only about agency. isn’t always fun. “My every training one in 800 trainees can complete schedule is very tight and exhaust- the entire program. ing,” Duan sighed. “After returning “I’ll consider changing my career home, the first thing I want to do is to direction if I fail to debut after two collapse on my bed.” Now, his clos- or three years of training,” Wu said. est friends in Beijing are all trainees at The industrialization of idol the same agency. “Similar experiences training originated in Japan in the give us many topics for casual conver- 1980s. Back then, several girl bands sation, but this tendency also limits emerged and exploded overnight. the scope of my social network.” Since the late 1990s, increasing

A teacher instructs trainees in a physical education class. Strong physical strength is a prerequisite for youngsters yearning for a career in the entertainment industry.

64 VOLUME 845 NOV · 2O18

A teacher lectures in a music theory class. Considering their different levels of musical literacy, trainees are divided into different classes, with some needing to start with the most fundamental music theory. Idol trainees need to take a wide range of training classes including vocal music.

had become pop idols, not until 2012 did idol training really happen on the Chinese mainland. The shift was evidenced by the online popularity of TFBOYS, a teenager band consisting of Wang Junkai, Wang Yuan and Yi Yangqianxi. The same year, the Chinese girl band SNH48, with members trained in Japan, took shape, and the Chinese-South Korean boy group EXO-M debuted, of which all four Chinese members later became influential pop idols. Over the past few years, the Chinese mainland’s idol market has witnessed explosive development. From 2016 and 2017, more than 20 boy bands emerged on the Chinese mainland. In 2018, two idol training reality shows, Idol Producer and Produce 101, continued domi- nating online video platforms. The energy and serve as good role 20 to 28 years, and the overwhelm- 12-episode Idol Producer attracted models for teenagers. ing majority of fans are tweens and over 3 billion views, and the Anxiety is also building among teens. What kinds of role models 10-episode Produce 101 registered parents of idol trainees. “At first, my young idols are for teenagers is nearly 5.1 billion views. China’s parents didn’t support my decision an issue worthy of considerable pop idol market is predicted to to become a trainee,” Wu Qingli attention. reach 100 billion yuan (US$14.4 revealed. Her parents eventually “I don’t think my daughter billion) by 2020. relented after a long “standoff.” can learn anything valuable from “My parents said I could stay stories of overnight success,” Reflections on the Idol Craze obsessed with something only after commented Jin Shan, a 38-year-old The idol craze has drawn atten- I got a clear idea about what I really media professional. “Perhaps my tion from all over Chinese soci- want and like,” Wu added. view is a bit cynical. Young trainees ety. For instance, most idol train- At first, Duan Yaoqi’s parents do make painstaking efforts, but I ing reality shows focus on talent were not happy about their son still don’t like that they give up on competitions, which can quickly dropping out of college to pursue school at such a young age. Seeking become too repetitive. Moreover, dance. It took a long, painful period to make a fortune and become vulgarity on such reality shows as of time for them to finally accept famous may be a personal choice, well as the extreme commercializa- Duan’s decision. but I don’t hope this becomes a tion of idols has also sparked crit- In fact, public concern about model for personal development icism. The public worries whether the phenomenon is understandable. envied by today’s teenagers.” pop idols can generate positive Idol trainees average in age from

CHINA PICTORIAL 65 SOCIETY

Zorpia Robot China’s Bionic Helping Hands Text by Mo Qian

Bionic hands independently developed by Zorpia Robot offer solid performance at a reasonable price, which makes them attractive to average families.

66 VOLUME 845 NOV · 2O18

“Robots can become our best friends and indispensable parts of our lives,” says Qiu Yufeng, founder of Zorpia Robot.

n 2015, bionic hands independently developed by Zorpia Robot were released. With the help of the myoelectric pros- Ithetic hands, people with upper limb disabilities were able to perform motions like gripping, pinching and holding an object. Established in 2014, Zorpia Robot is the first Chinese robotics company focused on developing robotic arms. With the mission of “making robots friends of mankind,” the company has focused on producing high-performance and reasonably priced bionic hands in China since its inception. The company has independently completed the structural design of prosthetic bionic hands, broken through a technological monop- oly dominated by foreign companies, and produced products that can rival international competitors. After realizing mass production of its bionic hands, the company has continued to research and develop robots for use in other fields including industrial engineering, the service industry, healthcare and agriculture. Wang Gang, doctoral super- visor at the School of Mechanical Engineering of Tianjin University and co-founder of Zorpia Robot, explained the working principle of bionic hands in detail. A bionic hand is an externally powered pros- thesis often controlled by myoelectric signals, meaning it uses muscle signals in the patient’s residual limb

CHINA PICTORIAL 67 SOCIETY

to move the device. Electrodes are Yang Yiyong is the vice head placed on the user’s bare skin above of the School of Engineering and pre-selected muscle sites. When a Technology of China University of user contracts these muscles, the Geosciences. “Human upper limb electrodes pick up subtle changes joints and bones have at least 27 in the electrical patterns and send degrees of freedom,” he explains. these signals to a microprocessor “Timely and smart operation is which instructs the bionic hand to extremely important for the design react and perform action. Serving and control of bionic hands.” people with limb disabilities, bionic Zorpia Robot is currently hands should be able to learn new researching and developing its motions and soak up training. second-generation bionic hands The bionic hands produced by Zorpia Robot which are able to achieve eight can grasp a small object. degrees of freedom instead of the previous five. The bionic hands can grasp or hold an object with five fingers, perform adduction and abduction, and close and open. One finger can work with the other fingers to grip or grasp an object and bend. And each finger can make independent motions. “Customers can use our products to type, make phone calls, put on clothes, open the door, hold a kettle or take out a name card,” says Qiu Yufeng, founder of Zorpia Robot. “Our second-generation bionic hands are capable of doing many things. We are now developing bionic gloves which can be connected to our bionic hands to provide power and data sharing. And the gloves can also improve the appearance of the bionic hands.” Zorpia Robot’s competitiveness is primarily driven by the company’s strong and professional R&D and management team. A single bionic hand produced by Zorpia Robot is currently priced at around 10,000 yuan (US$1,440), much cheaper than its international rivals. The reasonable price makes the product more affordable for more people with disabilities. The company is also working on a bionic hand platform. According to Qiu Yufeng, this platform is designed to provide electrical and mechanical interfaces which can be accessed by sensors and other devices. Professionals

68 VOLUME 845 NOV · 2O18

Thanks to continuous tests and research by Zorpia Robot’s R&D team, its bionic hands have continuously developed and improved. can make secondary development commands delivered through our part of the municipal govern- on this platform to provide people self-developed security certifi- ment’s “International High- with disabilities a greater range cates. This makes them safer.” Qiu caliber Professionals” project, the of functionality for their bionic revealed that Zorpia Robot is a company received start-up capital hands. Moreover, the platform will supporter and promoter of a robotic of 2.2 million yuan (US$320,000), welcome access from mechanical blockchain program called “MPC” a 200-square-meter work space and devices, electric installations, and that was launched by late British free employee housing for three remote software algorithms which scientist Stephen Hawking (1942- years. Bionic hands developed meet the platform’s requirements. 2018). “The goal of the program is by Zorpia Robot are more than As a result, bionic hands produced to use blockchain as a cornerstone just a product or a project for the by Zorpia Robot will be able to be to establish a global robot secu- development zone. The company used in more fields or in specific rity consensus charter for effi- introduced the concepts of auto- situations such as shoemaking, cient monitoring and management mation and robotics to the area. cooking and cake decoration. of robots for security and safety By welcoming the brand, Rizhao “We are also firmly committed concerns.” Shibei Economic Development to solving safety problem related to In 2015, Zorpia Robot found a Zone hopes to attract more profes- robots during our R&D process,” home in Rizhao Shibei Economic sionals to form a platform to culti- adds Qiu. “Our bionic hands Development Zone in Rizhao vate innovative talent in science are designed to execute software City, Shandong Province. As and technology.

CHINA PICTORIAL 69 CULTURE | BOOKS

The Story of Modern Chinese Typography, a book penned by Zhou Bo and published by Peking University Press in September 2018. A Beautiful Narrative of Chinese Characters The Story of Modern Chinese Typography

Text by Zhao Miao

The unique beauty of Chinese writing has evolved elegantly over thousands of years, and exponentially over the last century.

ne of the oldest scripts still in use globally, written Chinese has a history of over 4,000 years. Chinese Ocharacters are the sole writing system in the world to combine images, pronunciation and meaning, which gives the script a special charm. It is an important system of symbols preserving the soul of Chinese civilization and the roots of Chinese wisdom. Pages of the book Kongji In the late Qing Dynasty (1644- Gezhi. The book 1911), the spread of information was written by Italian recorded with Chinese characters commissioner Alphonso changed from woodblock print- Vagoroni and ing to movable type printing. published in China in 1633. This caused the design of Chinese courtesy of Gao characters to change greatly. The Yizhi

70 VOLUME 845 NOV · 2O18

Example of modern design of characters on a horizontal board in 1934 from Colored Artistic Calligraphy by Song Songsheng. courtesy of Song Songsheng

second and third parts introduce the Department of History of Fine their evolution across two peri- Arts at Guangzhou Academy of ods: one is from the late Qing Fine Arts, remarked that this book Dynasty through the Republic of presents an overall picture of the China (1912-1949) and the other is development of modern Chinese after the founding of the People’s characters design, with extraor- 1917: New Year calendar from Asiatic Republic of China in 1949. Zhou Bo dinarily rich pictures and concise Petroleum Company, which was a joint wrote in the Preface, “Compared narrative. It is the fruitful result venture between the Shell and Royal Dutch oil companies founded in 1903. It dominated with the rapid development of of ongoing historical research of the Chinese market back in the first half of the 19th century. courtesy of Zhao Chen media for printing and digital tech- the design of Chinese characters. nology, the history, culture, and However, the influence of this book aesthetics of character design defi- goes far beyond character design. unique beauty of Chinese charac- nitely provide more sustained value. It has major academic value for the ters radiates from visual features This is the fundamental faith that research of modern Chinese culture unrelated to phonograms. The drove me to collect the gigantic since the late Qing Dynasty. Zhao charm attracts many calligraphers, volume of material necessary for the Jian, a professor of the Academy character designers and graphic book and write it all down.” of Art & Design under Tsinghua designers, who have created endless Li Gongming, a professor with University and director of the typefaces and designs which serve academy’s Department of Visual as effective tools for spreading Communication, hopes that the knowledge and visual information book not only benefits academic in Chinese society. research, but also bolsters public Over the past five years, Zhou ability to understand and appreci- Bo, the author of The Story of ate the modern design of Chinese Modern Chinese Typography, characters. collected loads of primary material Author Zhou is an associate and information and interviewed professor at the Central Academy many eminent designers and collec- of Fine Arts. His research focuses tors in Beijing and Shanghai. As on art, design and visual culture. a “history in pictures,” the book He authored Modern Design and delicately displays the unique visual Ethical Thinking (2014) and trans- effect of Chinese characters in lated Typographie (2017). He won modern times. It also showcases the Fine Arts Award of China designers’ affection for Chinese for Theory Criticism in 2014 characters across the last century. and Beijing’s award for excellent The book is divided into three research on philosophy and social parts. In the introduction, the science in 2017. author expresses views on some The cover of a book named Long Live Peace basic issues concerning the modern by Ren Weiyin, published in 1958. courtesy of design of Chinese characters. The the library of Central Academy of Fine Arts The author works for Rizhao Polytechnic.

CHINA PICTORIAL 71 CULTURE

Landscapes of the Mind Text by Yi Mei Photographs courtesy of Tate Britain

The exhibition “Landscapes of the Mind: Masterpieces from Tate Britain (1700- 1980)” traces three centuries of development of British landscape painting for the Chinese audience.

72 VOLUME 845 NOV · 2O18

key project of China-UK cultural exchange, “Landscapes of the Mind: Masterpieces from Tate Britain (1700-1980),” jointly orga- Anized by Tate and the National Art Museum of China (NAMOC), is tracing the development of British landscape painting over nearly three centuries for the Chinese audience.

More than Visuals The exhibition at NAMOC follows the remarkable development of Britain’s greatest contribution to European art— landscape painting—via Tate’s unrivaled collection of British paintings. Comprised of a superb selection of works of outstanding beauty and originality, it also illumi- nates exactly how landscape art became the central expression of British visual imagination. The exhibition begins with the great topographical and classical painters of the 18th century and moves through the Romantic, Pre-Raphaelite and Impressionist artists of the 19th century before arriving at the pioneering modern- ists of the 20th century. Each of its five sections—“Looking and Dreaming,” “Classical and Romantic,” “Naturalism and Impressionism,” “The Early Modern Landscape” and “The Later Modern Landscape”—includes many of Tate’s finest oil paintings, watercolors and drawings as well as prints, photographs and books. Along with providing a thrilling visual display, the exhibition also narrates a fasci- nating story of the wider historical and cultural development of Britain. Great paintings are positioned in the context of the literary, philosophical, political and social forces that shaped the nation’s growth over nearly three centuries. By focusing on landscapes, British artists tapped into the heart of the national image. Landscapes of the Mind “From Constable’s gentle fields to

Landscape with Rainbow, Henley-on-Thames by Jan Siberechts, 1690.

CHINA PICTORIAL 73 CULTURE

Otho with John Larkin by George Stubbs, 1768.

Martin’s apocalyptic visions, from Turner’s stormy mountains to Nash’s surreal lowlands, landscapes have been Britain’s greatest contribution to art for three centuries,” remarks curator Richard Humphreys. “This exhibition presents the remarkable achievements of Britain’s greatest landscape artists, revealing a rich story of change and continuity which reflects the nation’s endless fascination with the natural world and man’s place within it.” The exhibition is not only a collection of visual expressions of the physical world, but also an in-depth investigation of man’s relationship with nature over time. Considering the growing concerns around environmental issues, examining landscapes by the great painters of the past can help inform the way we look at the future.

China-UK Cultural Exchange This exhibition is the culmination of more than two years of collaborative work between institutions in China and Britain. However, it is not the first time that Tate Gallery, the UK’s national museum of British and international modern and contemporary art, has shared its collection with a Chinese institution. Back in 2009, the exhibition “Turner from the Tate Collection” was held at NAMOC, which received a huge response from Chinese patrons. So, “Landscapes of the Mind: Masterpieces from Tate Britain” is the second collaboration between Tate and NAMOC and also an important exhibition project of the International Exhibition Exchange Series of NAMOC. “From its inception, this partnership has received staunch support from the UK Government as an important measure

74 VOLUME 845 NOV · 2O18

CHINA PICTORIAL 75 CULTURE

76 VOLUME 845 NOV · 2O18

The Destruction of Pompeii and Herculaneum by John Martin, 1822, restored 2011.

supporting the British relationship with China and highlighting the flourishing cultural exchange between our two countries,” notes Alex Farquharson, director of Tate Britain. China and Britain, two countries with profound history and cultural tradition, are both home to splendid art that is both unique and diversified. Landscape paintings have been a favorite of Chinese artists since ancient times. But the curator still believes the Chinese audience will see new things at the event. “I hope the public here will find something of interest at this exhibition because I am all too aware, of course, that China has its own rich ancient tradition of landscape art, one that achieved great sophis- tication and beauty many years before the British turned their attention to the genre,” says curator Humphreys. “But there may be something instructive in considering the differences between the two traditions. And also, perhaps, some pleasure in pondering over the parallels and similarities, whether they are tendencies towards a literary and philosophical approach, a pastoral longing for a better world, or a simple joy in the spontaneity of perception and the fluid possibilities of water-based media.” As noted by Wu Weishan, director of NAMOC, the geographical distance between the two countries has never stopped mutual attraction between the two splendid civilizations nor communication between the two cultures. People from Eastern and Western countries share the same passion for nature. “Every piece is a showcase of the artist’s boundless love for nature,” he declares. “It’s not only about landscapes in the eyes, but the landscapes of the mind.”

CHINA PICTORIAL 77 CULTURE | ON DISPLAY

Tu Hongtao: A Timely Journey November 10 – December 2, 2018 Long Museum (West Bund), Shanghai

With nearly 20 works, this solo exhibition thoroughly explores Chinese painter Tu Hongtao’s output over the last three years, a period which fostered increasing freedom in his exploration of painting. His goal is to reinterpret the way time and space are depicted in art. Tu Hongtao was born in Chengdu, Sichuan Province, and currently teaches in the Department of Design and Art Poster for the exhibition “Tu Hongtao: at Chengdu University. He has A Timely Journey.” participated in many exhibitions in China and abroad. Focusing on imaginative landscape painting, Tu aims to convey sensations of a journey through natural wonders. Cornerstone by Gan Jian, immersive voice and video installations, six laser projectors, computer and sound systems, 30×15×13m, 2018.

Heteroglossia November 7, 2018 – February 17, 2019 HOW Art Museum, Shanghai

The term “heteroglossia” originated from critical concepts introduced by Soviet literary theorist Mikhail Bakhtin. It explores the coexistence and conflict of different languages while also symbolizing the diverse and non-fixed characteristics of contemporary social culture. The exhibition themed “Heteroglos- sia” presents works of 10 artists from different countries and regions, including installations, images and performances. These works convey the artists’ contrast- ing views and opinions on the regions and Poster for the exhibition “Heteroglossia.” times in which they live.

78 VOLUME 845 NOV · 2O18

Future Folding September 16 – December 9, 2018 Suzhou Jinji Lake Art Museum, Suzhou

With an eye on expanding imagination about the future, the exhibition themed “Future Folding” also aims to explore anxieties about modern realities and prospects for the future in the context of rapid development of the times. The exhibition invited Chinese and foreign new media artists from different backgrounds, genders and styles to participate. Ten groups of typical works including installations, experimental music, video and spatial interaction represent these artists’ attempts to use new media to express their understanding of the future world. The exhibition uses every inch of space to interact with the audience and inspire boundless imagination on future development.

Dust by Ying Xinxun, 600×300×200cm. Effusion by Deng Yuejun, copper, aluminum alloy, circuit module, and LED, etc., variable size, 2018.

Surviving Volumes of Yongle Encyclopedia September 28 – December 31, 2018 National Library of China, Beijing

Commissioned by Emperor Yongle of the Ming Dynasty (1368-1644), who reigned from 1403 to 1424, the Yongle Encyclopedia is a collection of books compil- ing Chinese history, geography, literature, art, philosophy, religion and other fields prior to the 14th century. It is composed of 370 million words spread across 11,095 volumes and called the largest encyclopedia in the world by Encyclopedia Britannica. Most volumes were lost in history, except for 800-plus that have survived and are preserved by various global institutions. This exhibition displays 12 original volumes of the encyclopedia held by the National Library of China alongside other precious ancient books and manuscripts as well as volumes of the encyclopedia published in different periods and collected overseas, exploring the unusual fate and immortal glory of the classic. Supported by modern technologies like holographic projection and stereoscopic The first section of the exhibition. scene restoration, the exhibition also offers interactive activities such as transcribing the encyclopedia for readers of various ages.

CHINA PICTORIAL 79