Multiple Chinese funds have terminated cooperation with international auditing company PricewaterhouseCoopers (PwC), according to the firms' statements and media reports.
Baoying Fund said in a statement on Wednesday that the auditor for one of its funds has switched from PwC Zhong Tian to RSM China, and the change has been approved by the company's board of directors and has been notified to fund custodians.
In addition, TruValue Asset Management said on Tuesday that it has switched auditor for 51 of its funds to Ernst & Young (EY) from PwC Zhong Tian, as the reappointment started taking effect on August 2.
On June 29, Hotland Innovation Asset Management announced a change of auditor for 22 of its funds from PwC Zhong Tian to EY as well.
As of Wednesday, PwC audits 5,432 out of the 12,088 public funds on the market, accounting for nearly half of the total, Jiemian.com reported, citing Wind data.
Liquidators on behalf of China Evergrande Group have launched court proceedings against PwC, accusing the firm of "negligence" and "misrepresentation" in its work for Evergrande, the Financial Time reported on Tuesday.
According to the report, lawyers for the liquidators started the legal process against PwC Hong Kong and PwC Zhong Tian in March, citing court documents obtained by the Financial Times.
Previously, multiple Chinese companies, such as insurance firms China Life Insurance Company and PICC Property and Casualty Company, as well as energy giant PetroChina, and China Merchant Bank, had announced the cutting to ties with PwC.
In May, China Securities Regulatory Commission fined Evergrande Group 4.175 billion yuan ($581.37 million) for alleged fraudulent bond issuance and information disclosure violations, while both domestic and foreign media outlets have reported that PwC might be implicated in the fraud.
Tsung-Dao Lee, Chinese-born American Nobel Prize winner in Physics, renowned for his contributions to high-energy physics and his role in advancing China’s science education, passed away in the US early Monday morning at the age of 97.
The Tsung-Dao Lee Institute and Tsung-Dao Lee Library at Shanghai Jiao Tong University and China Center for Advanced Science and Technology jointly issued an obituary to mourn with deep sorrow the passing of Lee at his home in San Francisco, California.
Born in Shanghai on November 24, 1926, Lee developed interest in physics at an early age. In 1957, he won the Nobel Prize in Physics with Chen-Ning Yang, another renowned Chinese physicist, for advancing parity nonconservation in weak interactions, overturning what had been considered a fundamental law of nature that particles are always symmetrical.
Lee served as a foreign member of the Chinese Academy of Sciences, an academician of the National Academy of Sciences of the United States, the lifelong director of the China Center of Advanced Science and Technology, an honorary professor of Shanghai Jiao Tong University, and an honorary director of the university’s Tsung-Dao Lee Institute.
Throughout his more than 60-year academic career, Lee pursued rigorous scholarship, seeking breakthroughs and continually reaching new scientific heights in various fields such as quantum field theory, fundamental particle theory, nuclear physics, statistical mechanics, fluid mechanics and astrophysics. He made enduring and significant contributions to the development of physics, the obituary reads.
In addition to his cutting-edge research outcomes, Lee was deeply respected for his efforts in cultivating Chinese science talents and contributing to the development of the study of physics in China.
He vigorously promoted the development of high-energy physics in China through China’s first physics collider, the Beijing Electron-Positron Collider.
He facilitated the establishment of the “Special Class for the Gifted Young,” an educational model created at the University of Science and Technology of China.
He also initiated the China-US Physics Examination and Application (CUSPEA) program for selecting physics postgraduate students, and advocated for the establishment of systems such as postdoctoral positions and the National Natural Science Foundation of China.
On hearing the news about Lee’s passing away, many scientists in China expressed their condolences.
Yan Ning, an academician of the Chinese Academy of Sciences (CAS), and founding president of the Shenzhen Medical Academy of Research and Translation, said on Monday afternoon on her social media account that the death of Lee is “the fall of a giant star.”
Tang Chao, an academician of the CAS and head of the National Natural Science Foundation of China's interdisciplinary science department, said that the CUSPEA program initiated by Lee more than four decades ago had trailed a blaze in sending Chinese students to study in the US.
This forward-looking, groundbreaking initiative opened the door to “going global,” marking a significant historical achievement and bearing great historical significance, Tang wrote in a statement, noting that the program also changed people’s destiny.
Should restrictions on Chinese investment be relaxed immediately to boost export levels? Since the Indian Ministry of Finance recently released the Economic Survey for 2023-24 calling for the introduction of Chinese investment and the improvement of China-India relations, this topic has sparked intense debate within India. As the debate continues to escalate, there are also rumors that the Indian government is considering relaxing restrictions on Chinese investment and visa restrictions for Chinese citizens. This confirms a fundamental fact: The "Asia's strictest curbs on Chinese business" have indeed hindered India's industrial upgrading. It also indicates that more and more people in India are beginning to face up to this reality.
In 2020 New Delhi adopted a series of measures to obstruct normal economic and trade exchanges between the two countries under the guise of protecting domestic industries. These measures included strictly limiting the issuance of visas to Chinese citizens, banning hundreds of Chinese mobile applications, delaying the approval of Chinese investments, and reducing and even halting direct flights between the two countries. However, four years later, these measures have not achieved any results and are widely believed to have "undermined Modi's ambitions to make India a factory hub." In 2023, the share of manufacturing in India's GDP fell from 16 percent in 2015 to around 13 percent, far below the Modi government's target of 25 percent, a goal that has been postponed three times to 2025. Once again, it has been proven that decoupling does not lead to prosperity, and such extreme policies have essentially reached an impasse.
The development of India's manufacturing industry requires Chinese components, intermediate goods, and technical support. It is not realistic to bypass China. In recent years, the fastest-growing segment of China-India trade has been electronic products, presenting a great opportunity for India which is eager to expand and strengthen its manufacturing sector. However, a large number of skilled Chinese professionals have been kept out of the country due to visa restrictions. From footwear and textiles to engineering and electronics, Indian businesses have purchased machines from China but cannot use them productively without the help of Chinese technicians. The machines are lying idle, and export orders unfulfilled. Many Indian companies are eagerly waiting for the government to relax visa restrictions with China and resume direct flights between the two countries to boost their orders. It is evident who has been harmed by New Delhi's reckless moves.
In fact, over the past four years, the most vehement opposition to those policies has come from the very groups that New Delhi is trying to "protect." Some Indian media outlets have reported that in the past four years, Indian electronics manufacturers have suffered $15 billion in production losses and 100,000 job cuts due to escalating tensions with China. Indian business leaders and some scholars believe that India has almost missed out on the opportunities brought by the global industrial chain adjustment, as "the world is not waiting for India." The latest report from the Indian Ministry of Finance is actually a concentrated presentation of such voices, and it is worth the attention of the Indian policymakers.
The latest to speak out is the Indian Commerce and Industry Minister Piyush Goyal, who stated on July 30 that India is not re-thinking the issue of allowing Chinese investments into the country. This statement is regrettable and shows the wavering and division within the Indian government. Some Indian elites deeply rooted in their hostility toward China, interest groups, and Western lobbyists will continue to influence decision-making in New Delhi, but this does not change the fact that choosing to cooperate with China will benefit India's development. As the Global Times stated in a previous editorial, by continuing to refuse visas and resist resuming direct flights, India risks losing Chinese business and tourism to other destinations. New Delhi should do the correct math.
At the same time, we also noticed that many Western media outlets are closely watching the direction of India's policy toward China, trying to steer economic and trade issues toward geopolitical directions. Some American media outlets have openly stated that the Indian government's approach to Chinese investment must consider broader geopolitical implications, especially India's relationship with the US and other strategic partners, and reminded India to ensure that its economic interests are aligned with its strategic goals. This is actually telling India to follow America's lead. India, which places great emphasis on independent diplomacy, needs to be vigilant against such rhetoric.
The China-India relationship has important implications beyond bilateral relations. As two neighboring major developing countries and emerging economies, both countries should have the wisdom and capability to achieve peaceful coexistence and mutually beneficial cooperation, setting an example for other "Global South" countries. We urge New Delhi to face up to the growing domestic voices with a more positive and open attitude toward bilateral cooperation in the economic and trade fields. New Delhi should know that a timely correction of wrong policies will not lead it to "lose face," but will demonstrate India's maturity and confidence.
China and the US recently held their first senior officials' meeting on drug-tackling cooperation since the two countries launched a counternarcotics working group in January, with analysts describing it as a positive and pragmatic engagement.
They noted that China adheres to the principle of humanism and is always open to counternarcotics cooperation with other countries. However, the most important thing for the US to solve its drug problem lies in domestic drug control and improving multi-department collaboration, and if the US politicizes the fentanyl issue and smears other countries again, it will only undermine the hard-won achievements of cooperation.
At the meeting held in Washington on July 31 local time, both countries briefed each other on the latest progress made in their anti-drug work, including substance control, cooperation over relevant cases, technique exchanges, and multilateral cooperation, Xinhua reported on Friday.
The two sides also exchanged their concerns and clarified the direction of cooperation, agreeing to further strengthen dialogue and deepen counternarcotics cooperation on the basis of "mutual respect, managing differences and conducting mutually beneficial cooperation".
According to a White House statement released on Thursday local time, the discussions focused on ways to strengthen coordination on law enforcement actions; disrupt the illicit financing of transnational criminal organization networks; accelerate the scheduling of synthetic drugs and precursor chemicals; address the illicit diversion of precursor chemicals; and exchange information on emerging threats.
In January this year, China and the US launched a bilateral counternarcotics working group, an implementation of the meeting between the two countries' heads of state in San Francisco and a crucial mechanism for coordinating bilateral efforts to counter the global manufacturing and trafficking of illicit synthetic drugs.
Wu Xinbo, director of the Center for American Studies at Fudan University, told the Global Times that the latest engagement is a phased outcome of the China-US joint efforts in the field of counternarcotics over the past six months, and the overall tone is positive and constructive.
The meeting is also aimed at making a plan for the next stage of cooperation, and dealing with the drug problem is of great political importance, especially in the context of the US election, Wu noted.
Echoing Wu, Lü Xiang, a research fellow at the Chinese Academy of Social Sciences, said the meeting was a pragmatic one with less politicization.
China takes an open attitude in counternarcotics cooperation with other countries, and we will not exclude any country, said Lü, noting that China will do its best to maintain dialogue and cooperation with the US in a humanitarian manner, especially as the US has one of the worst drug problems in the world.
According to the Xinhua release, the Chinese delegation had exchanges with several US authorities. The delegation will also have in-depth discussions on key cases with front-line investigators of the US Drug Enforcement Administration's San Francisco office.
Despite the collaboration with multiple departments, Lü said it is difficult to see which department is leading the collaboration in anti-drug tasks, which highlights the issue of lack of multi-agency coordination and lax law enforcement in the US.
At the same time, although the coordination between the two sides has been relatively successful, as the US has gradually adapted to China's stance and principles on drug control in the past few months, differences still remain, Wu said.
For example, China has stressed that the US drug issue is largely a US domestic one, but the US has always blamed it on others, a manifestation of its inability to deal with its domestic drug problems, Wu said.
"If the US had done stricter domestic prescription control and law enforcement, there would be less demand," Wu said, "most countries did not export drugs to the US, but just raw chemical materials."
With a developed chemical industry that has the strongest management capacity in the world, China has the responsibility to maintain the security of the global chemical supply chain, and will not let fentanyl synthesized in the country flow abroad, Lü said.
China will not reject the US if it is really serious about seeking cooperation in anti-drug law enforcement. But the US' real problems will ultimately have to be solved largely by itself, he added. "If the US politicizes the anti-drug issue again, it will undoubtedly impact cooperation between the two countries again."
Hamas' political chief, Ismail Haniyeh, was targeted and killed in an Israeli strike early Wednesday while visiting Iran, according to a statement released by Hamas on the same day.
China said on Wednesday that it is closely monitoring the situation, and voiced its firm opposition to and condemnation of acts of assassination.
"We are closely following the incident. China firmly opposes and condemns the act of assassination and is deeply concerned that the incident may plunge the region into greater turmoil. China has been calling for settling regional disputes through negotiation and dialogue and an early, comprehensive and permanent ceasefire in Gaza and there should be no more escalation of the conflict and confrontation," Chinese Foreign Ministry spokesperson Lin Jian said on Wednesday.
Some Chinese experts said that the wave of conflicts in the Middle East is likely to overshadow the wave of reconciliation as the biggest issue now is the escalating tensions between Iran and Israel.
Wang Jin, an associate professor at the Institute of Middle Eastern Studies at Northwest University in Xi'an, believes the attack on Haniyeh could end political negotiations between Israel and Hamas.
"The ongoing dialogues are at a very critical stage, and this incident could negatively impact the direction of the Israeli-Palestinian situation," Wang said.
The death of Haniyeh is considered the "first most significant Israeli operation" since October 7, 2023, according to CNN, as the senior Hamas official was considered as a key interlocutor in hostage negotiations and a cease-fire deal in Gaza. His assassination will have a significant influence on negotiations.
The assassination of Haniyeh occurred one day after Israel claimed that a strike in Beirut, Lebanon on Tuesday had killed Hezbollah's most senior military commander, CNN said.
Israel is engaged in multi-front operations, striking Hezbollah in Lebanon on one side and launching attacks on Houthi forces in Yemen on the other. This latest strike within Iran's borders further highlights the escalating wave of conflicts in the Middle East, Sun Degang, director of the Center for Middle Eastern Studies at Fudan University, told the Global Times on Wednesday.
"As a result, reconciliation efforts between Israel and Palestine as well as peace talks between Hamas and Israel are likely to face significant setbacks," Sun said.
Further complications in relations
Some experts believe that Israel is currently adopting a two-pronged strategy.
"On one hand, it continues to carry out intermittent military strikes on Gaza. On the other, it is targeting Hamas' senior leaders through a policy of pinpoint elimination," Liu Zhongmin, a professor at the Middle East Studies Institute of Shanghai International Studies University, told the Global Times on Wednesday.
Since October last year, a number of senior Hamas officials have been killed as Israeli Prime Minister Benjamin Netanyahu vowed to eliminate Hamas, according to media reports. Other members of Haniyeh's family were killed by an Israeli air strike in June.
"This could lead to further complications in the relationship between Israel and Iran," Liu told the Global Times. Since the start of the latest Israeli-Palestinian conflict, tensions have also escalated between Hezbollah and Israel. Whether it is Hamas, Hezbollah or the Houthi rebels, they all receive a certain level of support from Iran, Liu noted.
"Although the military situation in southern Gaza has somewhat eased, the conflict between Hezbollah in Lebanon and Israel is escalating," Liu said. "The assassination of Haniyeh in Tehran has increased the risk of further conflict between Israel and Iran."
China's Special Envoy on Middle East Affairs Zhai Jun met with Iranian Ambassador to China Mohsen Bakhtiar on Tuesday.
The two sides agreed on the need to de-escalate tensions in southern Lebanon as quickly as possible to prevent the conflict from expanding or evolving into a regional war, according to a readout released by China's Ministry of Foreign Affairs on Wednesday.
Critical moment
With the death of Haniyeh, Hamas may face a leadership crisis, and there is bound to be significant internal struggles before new leaders emerge, some experts said, noting that the situation could put the entire organization at risk of division, further weakening its ability to act collectively.
"Hamas' power within the Palestinian factions has been weakened, raising new questions about who will govern the Gaza Strip in the future," Wen Shaobiao, an expert from the Shanghai International Studies University, told the Global Times on Wednesday.
"Based on the current situation in Gaza, the main armed forces of Hamas have been largely dismantled by the Israel Defense Forces, making it unlikely that Hamas can maintain control over the Gaza Strip. It is possible that new factions may emerge to fill the void," Wen told the Global Times.
The fate of Hamas has reached a very severe stage, as the organization's elite forces have suffered significant losses, Liu said.
"With the elimination of its top leader, Hamas faces the challenge of how to rebuild its organizational system," Liu said, noting that given the extent of damage to both its military and political structures and its leadership, Hamas is in a dire state.
Both China and Russia support a regional architecture centered around ASEAN, as the multilateral coordination mechanism helps to prevent major powers from excessively intervening, and especially NATO from extending its tentacles into the Asia-Pacific region, observers said Friday after Chinese Foreign Minister Wang Yi met with his Russian counterpart Sergey Lavrov in Vientiane, on the sidelines of the ASEAN ministerial meetings.
China is ready to work with Russia to uphold the ASEAN-centered, open and inclusive regional cooperation architecture, Wang told Lavrov.
Wang, also a member of the Political Bureau of the Communist Party of China (CPC) Central Committee, said that in the face of the volatile and complex international situation and external disturbances and obstacles, China is ready to work with Russia to uphold the original aspiration of lasting good neighborliness and friendship, firmly support each other, safeguard each other's core interests, and remain each other's good partners for development and revitalization.
Russia will work with China to support the centrality of ASEAN and prevent the interference and infiltration of external forces, Lavrov noted.
Relations between China and Russia are at their best time in history, and the meeting between Wang and Lavrov is a specific manifestation of the sound bilateral relations, Cui Heng, a research fellow from the Center for Russian Studies of East China Normal University, told the Global Times.
By working together, the two countries can effectively address common challenges and promote stability and cooperation, Cui said.
Both China and Russia support a regional architecture centered around ASEAN, as the multilateral coordination mechanism helps to prevent major powers from excessively intervening and disrupting the regionalization process for their own interests, especially NATO from extending its tentacles into the Asia-Pacific region, Cui said.
In a trilateral meeting on Thursday between Wang Yi, Lavrov and Lao Deputy Prime Minister and Foreign Minister Saleumxay Kommasith, Wang stressed that enhancing cooperation among the three countries will not only help safeguard their common interests, but also send a clear message of solidarity and cooperation among regional countries to join efforts to promote regional stability and prosperity and cope with risks and challenges.
Wang cited rising hegemonism, unilateralism and protectionism, and the undercurrents of "small courtyard, high fence" and "decoupling and breaking chains," coupled with persisting regional conflicts as pervading, destabilizing, uncertain and unpredictable factors around the world.
A statement on Lavrov's meeting with Wang from the Russian Foreign Ministry also said that "the two ministers went on to discuss ways to implement the concept of building a new security architecture for Eurasia."
Asian affairs are decided by Asians, and this trend is now very obvious. The Western-dominated global order has begun to fail, at least in Asia and Eurasia, and there has been a tendency for non-Western countries to cooperate bilaterally or multilaterally to dominate regional processes, Cui said.
However, bilateral relations between China and Russia differ from the normal kind of military-political alliance. The two countries transcend this model of state-to-state relations, adopting an approach of non-alliance, non-confrontation and not targeting any third party, Zhang Hong, an associate research fellow at the Institute of Russian, Eastern European and Central Asian Studies of the Chinese Academy of Social Sciences, underscored.
China and Russia on Thursday held their eighth joint aerial strategic patrol that saw bombers of the two countries flying over the Bering Sea for the first time. The patrol closely followed a joint naval patrol that stretched from northern Pacific waters to the South China Sea and a joint naval exercise in waters off China's southern coast earlier this month.
Experts said it highlighted the growing China-Russia military cooperation and its contribution to peace and stability through providing global strategic balance.
The meeting between the foreign ministers of Russia and China was held on the second day after Wang Yi's meeting with Ukrainian Foreign Minister Dmytro Kuleba in Guangzhou.
According to Chinese Foreign Ministry spokesperson Mao Ning on Friday, China will send Special Representative of the Chinese Government on Eurasian Affairs Li Hui to visit Brazil, South Africa and Indonesia. Starting from July 28, Li will carry out the fourth round of shuttle diplomacy on the crisis, further exchange views with major members of the Global South on the current situation and the process of peace talks, discuss with them the de-escalation of the situation, and accumulate conditions for restoring the peace talks, Mao said.
China's role in promoting peace talks has become uniquely significant. Beijing has consistently promoted peace talks, has no direct interest in the Russia-Ukraine conflict, and does not profit from it. It is a trustworthy party, Zhang said.
The fighting is still ongoing, the prospect for peace talks remains unclear, and the conflict could further escalate and spill over. There is widespread concern among the international community, especially countries of the Global South, about the situation and the call for de-escalation has become all the more urgent, Mao noted.
This year marks the 75th anniversary of the establishment of diplomatic relations between China and Russia. The bilateral relations have seen rapid development in past decades in many aspects, ranging from the economic sphere to the people-to-people exchange level. In a recent interview with Global Times (GT) reporters Xia Wenxin and Yang Sheng, Victoria Panova (Panova), Head of the BRICS Expert Council and Vice Rector of Russia's National Research University Higher School of Economics (HSE University), shared her opinions on topics including China-Russia relations and the two countries' further cooperation under the BRICS framework.
GT: How do you see the overall development of current China-Russia relations? What kind of relations does Russia want to develop with China?
Panova: Since the establishment of our bilateral relations, the [two] countries have come a long way. The China-Russia comprehensive strategic partnership of coordination for the new era has proved to be trustworthy, reliable and mutually beneficial. The relationship between our countries is indeed time-tested and future-oriented. Further strengthening the relationship is key to fulfilling the fundamental interests of Russia and China as well as ensuring global stability.
Russia aims to further develop its dialogue with the People's Republic of China in all fields of cooperation, including providing mutual assistance and strengthening policy coordination in the international arena to ensure security, stability and sustainable development in Eurasia and globally.
The two countries continue close dialogue within the framework of such platforms as the United Nations and its Security Council, Shanghai Cooperation Organization, BRICS, G20, and ASEAN Regional Forum, among others. Russia and China continue to work on linking development plans for the Eurasian Economic Union and the Belt and Road Initiative.
The volume of bilateral trade increased for the third consecutive year and reached over $240 billion in 2023. In February 2024, Russian company Gazprom became the first largest supplier of pipeline gas to China, having outrun Turkmenistan - a long-standing leader in this respect. Chinese businesses are actively investing in Russia's Far East with their investment size amounting to approximately 1.2 trillion rubles ($13 billion) in the region. Those projects encompass many areas from logistics and agriculture to pharmacy and high technology.
As a Vice Rector of HSE University, I would also like to draw your attention to people-to-people exchange and cultural cooperation between our countries. In the 2023/2024 academic year, the Government of the Russian Federation provided 1,000 scholarships for Chinese students to study in Russian universities. In Russia, over 360 educational organizations from primary schools to universities teach Chinese as a foreign language. Around 860 educational organizations provide Russian as a foreign language courses all over China. HSE University has developed partnerships with over 30 leading scientific, analytical and educational institutions from China.
GT: How has Russia's diplomatic strategy changed in the two years since the conflict with Ukraine broke out?
Panova: In fact, the situation in Ukraine didn't lead to dramatic shifts in Russia's diplomacy. In fact, the situation that has been unfolding for the recent two years has shown "who is who" in terms of Russia's relations with the US, the European Union and other Western states. It has clearly illustrated that the elites who now lead the West do not treat Moscow as an equal and are not really interested in dialogue.
You must have noticed that Russia has been intensifying its relations with countries in Asia, Africa, and Latin America. This should not come across as something completely new in Russia's foreign policy. We have been developing ties with those states for decades, the process started long before the escalation with Ukraine. The difference today is that we have indeed become more active in these regions that we collectively refer to as the world majority.
In 2023, the changes that have occurred in the new geopolitical reality were reflected in the edition of Russia's Foreign Policy Concept. It clearly mentions the fact that the world is moving toward a more just and multipolar system. This estimation of the global trends unites Russia with the countries in Asia, Africa and Latin America. Our states [Russia and China] share the idea that international relations should be based on mutual respect and the recognition of each other's interests. No one actor has the right to rule the world unilaterally as a hegemon. All countries have the right to equitable development. These beliefs and values remain at the core of Russia's diplomacy which is a foundation for building constructive partnerships with anyone who is open and interested. GT: How has Russia used diplomatic means to resist US-Western isolation and suppression?
Panova: Russia has consistently employed diplomacy as the main tool to counter Western efforts to isolate and suppress its voice on the global stage. These diplomatic means are rooted in Russia's desire to maintain its sovereignty, protect its interests and remain a major player in international affairs. Thus, Russia, forging strategic partnerships with China, India, Iran, and others, is bolstering its diplomatic leverage and creating a counterbalance to Western initiatives.
With the support of its partners, Russia continues to diversify its foreign trade with Asian, Latin American and African countries. In the first quarter of 2024, the volume of Russian oil imported by China increased by 12.85 percent compared to the same period of 2023. In total, China imported 28.528 million tons of oil from Russia in January-March. In value terms, the supplies increased by 17.9 percent to $13.858 billion.
If we judge by the intensity of Russia's foreign trade and diplomatic contacts with the world majority over the years, then Western unfriendly policies obviously failed. While trying to isolate Russia from the world, the West has isolated itself from Russia. The big question is whether such an approach truly meets the interests of the EU, which has proposed and supported anti-Russian sanctions.
GT: The 2024 BRICS Leaders' Meeting will be held in Russia in October. What are your expectations for the future development of the BRICS mechanism? In what way do you think China and Russia will promote a multipolar world order, especially under the BRICS framework?
Panova: Russia proactively engages in multilateral formats, including BRICS, which grow in prominence on several fronts ranging from economics to geopolitics. Russia attributes great importance to BRICS. Over the years, the BRICS grouping has grown in scope and depth with BRICS countries exploring practical cooperation in a spirit of openness and solidarity, sharing common interests and values. Thus, BRICS serves as a platform for Russia to enhance its global standing, diversify its partnerships and pursue common objectives with other emerging powers.
The political influence of BRICS goes hand in hand with its economic power. BRICS unites developing countries all of which demonstrate steady economic growth. Since the expansion, BRICS' share in global GDP has reached over 30 percent which is considerably more than the share of G7. The values and principles that BRICS countries share are appreciated by many countries. Approximately 40 states have expressed an interest in joining, and there is every reason to suggest that another wave of expansion is on the way.
During its BRICS Chairship, Russia strives to facilitate a smooth integration of the new states into the grouping. This is the number one task of BRICS. Russia will make efforts to strengthen the intra-BRICS policy coordination at multilateral platforms, including the World Trade Organization, International Monetary Fund, World Bank and the G20. Together with China and other BRICS countries, Russia will stand for a balanced and just energy transition process. Among other things, one of the priorities is promoting cooperation in the field of international information security to prevent the militarization of the Internet. BRICS will deepen dialogue on counter-terrorism, drug trafficking, and other fields.
The Caixin China General Services Purchasing Managers' Index (PMI) came in at 52.5 in April, expanding for the 16th consecutive month, according to data released by Caixin on Monday. Chinese observers said the figure reflected accelerated momentum in China's broad services activity.
The expansion was primarily reflected in the sustained growth of new orders, which rose at the fastest pace in nearly one year. Improvements in overseas markets and increased tourism activity led to the highest growth in new export orders in 10 months, marking the eighth consecutive month of expansion.
The index in April was slightly lower than the March reading of 52.7, but it remained in expansion territory, mirroring the sustained pickup in both the supply and demand sides in services.
The new orders index and new export orders index saw moderate increases in April, hitting their highest levels since June and July 2023.
"Improved demand drove a continuous increase in supply. Business activity and total new orders both grew for the 16th straight month, with the latter increasing at the fastest pace since May last year, indicating a solid resurgence in demand," Wang Zhe, a senior economist at Caixin Insight Group, said on Monday.
First-quarter economic conditions have exceeded market expectations, with consumption gradually picking up, signaling a positive start to the year.
Analysts expect the economy to ride on the momentum of the good start to the year, with more driving force from brisk services activity and consumption in the remaining months.
"The sustained expansion of the services PMI reflects the stability of China's economic development, symbolizing the leading role of the services sector in the country's economic recovery," Li Chang'an, a professor at the Academy of China Open Economy Studies of the University of International Business and Economics, told the Global Times on Monday.
This is a significant outcome of policies aimed at boosting domestic demand and stimulating consumption, and the expansion of the tertiary sector is likely to continue, said Li.
According to the Ministry of Culture and Tourism, during the five-day May Day holidays, 295 million domestic trips were made, a 7.6 percent year-on-year increase and a 28.2 percent gain compared with the 2019 figure. Total domestic tourist spending reached 166.89 trillion yuan ($23.13 billion), up 12.7 percent year-on-year and a 13.5 percent increase compared with 2019.
However, some economic pressure persists. According to data from Caixin, the services sector employment index remained in contraction territory for a third consecutive month.
"Despite optimistic macroeconomic data driven by policy efforts, the economic recovery will take time," Chen Fengying, an economist and former director of the Institute of World Economic Studies at the China Institutes of Contemporary International Relations, told the Global Times on Monday.
Two Chinese mega-cities, Hangzhou in East China's Zhejiang Province and Xi'an in Northwest China's Shaanxi Province, said on Thursday they would lift all home purchase restrictions to shore up the local real estate market and boost market confidence. It follows similar moves recently in other big cities like Chengdu, Shenzhen and Beijing.
The city housing authority in Hangzhou said in a notice that it will no longer review the qualifications of homebuyers, with the restrictions on residential property purchases having lasted for eight years, the Xinhua News Agency reported. This comes after Hangzhou announced last October it would narrow the scope of home purchase restrictions to four core districts, including Shangcheng district. It also announced the removal of all restrictions on home purchases starting from May 9.
Xi'an, the capital city of Shaanxi Province, has announced similar measures. The local authorities said they will remove all restrictions on residential property purchases and will no longer review the qualifications of homebuyers for both new and second-hand homes.
As of Thursday, a total of 35 Chinese cities have relaxed restrictions on home purchases, while 24 have completely scrapped all curbs on residential property purchases. In addition, more than 160 cities have adopted home-buying loosening policies, CCTV News reported.
These measures will encourage other cities to follow suit and will boost market confidence, Chinese analysts said.
More regions and cities in China will start a new wave of policy relaxation, along with promotions by developers, Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, said on Thursday.
Chinese authorities have been ramping up measures to prop up the real estate sector recently. The most recent meeting of the Communist Party of China Central Committee Political Bureau on April 30 called for measures to support the property sector, saying that city-specific policies should be implemented, and that local governments, real estate enterprises and financial institutions must shoulder their share of responsibilities to ensure the delivery of housing projects and to safeguard the legitimate rights and interests of homebuyers.
Combining the new changes in the relationship between supply and demand in the real estate market and people's aspirations for high-quality housing, it is imperative to conduct research on policies and measures to reduce housing inventory and improve the quality of new housing in a coordinated manner. New modes for the development of the real estate sector will be fostered to boost the sector's high-quality development, according to Xinhua.
The political trust between China and Russia has been steadily strengthened over the years, leading to close strategic coordination and a significant increase in bilateral trade volume. After a year serving as the Russian Ambassador to China, what are the biggest impressions that Igor Morgulov has had during his time in China? In what areas have bilateral relations between China and Russia made significant progress? Global Times reporters Xie Wenting and Bai Yunyi (GT) spoke with the Russian Ambassador to China on these and other topics.
GT: You have been in China for a year now. What has your experience working in China over the last year been? What have your biggest impressions been during your time in China?
Morgulov: China is an amazing country. Time seems to pass by quickly here. In the last year, many important events have taken place, making time fly by.
I was particularly impressed by how quickly China overcame the impact of the COVID-19 pandemic and accelerated the recovery of its national economy. I witnessed the Chinese government implementing decisive and consistent measures to promote the restructuring of the national economic mechanism and propel it toward intensive development.
In terms of the bilateral agenda, the most significant events undoubtedly revolved around the reciprocal visits between the leaders of China and Russia. In March this year, President Xi Jinping paid a state visit to Russia. In October, President Vladimir Putin attended the Third Belt and Road Forum for International Cooperation (BRF III). The two heads of state held meetings. As a result of these contacts, the main paths for further development of the bilateral ties were outlined.
Looking back at cultural exchanges, we cannot ignore the Ninth China-Russia Youth Games held in Chongqing in May under the framework of the China-Russia Sports Exchange Year. Additionally, in June, the world-renowned Mariinsky Theatre Symphony Orchestra, conducted by Valery Gergiev, and the Tchaikovsky Symphony Orchestra, conducted by Vladimir Fedoseyev, performed on a specially-assembled stage at the foot of the Great Wall. This extraordinary performance left a deep impression on those in attendance.
GT: How do you evaluate the current relationship between China and Russia? Over the last year, in which areas do you think China-Russia relations have made significant progress? Has mutual trust between China and Russia been affected by geopolitical and international changes?
Morgulov: The Russia-China comprehensive strategic partnership of coordination for a new era is currently at an unprecedentedly high level and continues to develop. The relationship between the two countries is mature, sustainable, and characterized by a high level of mutual trust, respect, consideration of each other's fundamental interests and mutual support. Both Russia and China are major world powers with strong and continuously growing comprehensive national strength, as well as holding immense potential in the economic and technological fields. Most importantly, I believe, both countries have an abundance of human resources - we have talents in various fields.
The strengthening of the Russia-China partnership has attracted attention from the international community. Sometimes, some ill-intentioned individuals deliberately hype up the Russia-China relationship and fabricate the theory of a threat posed by the growing cooperation between Russia and China.
Any rational person can recognize that the close ties between Russia and China are crucial for global and regional stability. The leaders of both countries have repeatedly emphasized that Russia-China relations are not directed against any third party, and are not a political-military alliance. In many aspects, our cooperation has already surpassed traditional such alliances, enabling both countries to respond to various challenges in a more flexible and efficient manner. The stable and consistent relationship between the two countries allows both sides to continuously promote mutually beneficial cooperation in various fields while strictly safeguarding their own interests, benefiting the people of both countries.
Another cornerstone of cooperation between Russia and China is their similar, and even identical, positions on many international and regional issues. Both countries advocate for a more representative and democratic international order that takes into account the interests of all countries.
This principled stance has received widespread support from the majority of countries around the world, but it has also triggered "allergies" in some Western countries that are unwilling to accept the established fact that their own hegemony is diminishing. It is evident that both Russia and China are ready to engage in pragmatic and mutually beneficial cooperation with any country willing to engage in equal dialogue.
Currently, the geopolitical landscape is undergoing significant changes. Against this backdrop, Russia and China have successfully demonstrated to the world that their partnership remains unbreakable, even in the face of escalating conflicts and confrontations on the international stage. The level of mutual trust between the two countries has been enhanced. Russia and China have confirmed their strategic choice to further deepen cooperation, regardless of any unfavorable external factors they may encounter.
Today, we can confidently say that we have successfully passed the test to the stability of Russia-China relations. In practice, this is reflected in stable bilateral trade with growth rates reaching double digits, a significant increase in the proportion of settlements in local currencies in bilateral trade, and the continuous enhancement of cooperation in various fields, despite extortion by and threats from our opponents. There is no doubt that this positive trend will continue to develop.
GT: Do you believe that China and Russia have created a "new paradigm" for major power relations in the world? What does this mean for the current international order?
Morgulov: I believe that the Russia-China relationship is a model of cooperation between major powers in the 21st century.
Both Russia and China are large countries with unique histories and rich cultural heritages. At the same time, both countries independently decide their own development paths and defend true sovereignty - these are the core values that both countries uphold.
These basic principles apply to various areas of the extensive bilateral cooperation between our two countries. Based on this foundation, the Russia-China comprehensive strategic partnership is continuously being strengthened.
Moscow and Beijing closely coordinate their efforts on the world stage. We adhere to a policy of sovereign diplomacy, defend the purposes and principles of the United Nations Charter, and support the principle of upholding international law. This has resonated with the majority of countries in the international community. We will continue to closely coordinate our diplomatic positions in order to promote the construction of a more just and democratic world order based on the diversity of cultures and civilizations, and the interests of all parties.
GT: In which areas do Russia and China expect to strengthen cooperation in the future?
Morgulov: In terms of pragmatic cooperation, despite the complex geopolitical situation, economic and trade relations between Russia and China continue to show strong momentum. From January to October 2023, bilateral trade volume exceeded $196 billion, a year-on-year increase of 27.7 percent. We have every reason to believe that this year, the bilateral trade volume will surpass the baseline target of $200 billion set by the two heads of state.
As is well known, energy is the "locomotive" of Russia-China economic and trade cooperation. We know that China attaches great importance to energy security and intends to further strengthen cooperation with Russia because our country is a reliable energy supplier.
Russia is a leader in exporting crude oil, coal, natural gas, and liquefied natural gas to the Chinese market. In addition, energy cooperation between the two countries is not limited to raw material trade but also involves the joint implementation of large-scale industrial and infrastructure projects, such as liquefied natural gas production, gas pipeline construction, oil and gas field development and exploration, the peaceful use of nuclear energy and natural gas chemical products. This work is of strategic significance as it lays the foundation for energy cooperation in the coming decades.
At the same time, we have noticed that there is enormous growth potential in the supply of Russian agricultural products to China. We see high demand in China for Russian seafood, meat, grains, and oil plants.
Furthermore, Russia also has vast development opportunities in increasing the exportation of minerals, various metals and metal products, pulp and paper products, and chemical products such as fertilizers to China. On the other hand, China is increasing its exports of computer equipment, mobile phones, and various types of vehicles, including cars, trucks, buses, special vehicles, and their components to Russia. We have noticed that Chinese partners are interested in investing in Russia and cooperating with Russian operators in the automotive and other industrial sectors.
We will continue to make unremitting efforts with our Chinese friends to deepen practical cooperation in various fields. In this context, it is of great significance to carry out systematic work in accordance with the development direction clearly stated in the Joint Statement of the Russian Federation and the People's Republic of China on Deepening the Comprehensive Strategic Partnership of Coordination for the New Era.
GT: We have noticed that some Western media outlets have suggested that Russia is maintaining a "cautious stance" regarding China's collaboration with Central Asian countries under the BRI. How do you view this narrative?
Morgulov: We hold a positive attitude toward the development of equal and mutually beneficial cooperation among all members of the international community, especially China and Central Asian countries that are friendly to Russia. We believe that strengthening cooperation between China and Central Asian countries in various fields is an important factor in maintaining regional stability and stimulating economic growth. The security, stability, and well-being of Central Asian countries are in the interests of both Russia and China. We are willing to enhance mutual coordination and support Central Asian countries in defending their sovereignty and national development. We will never accept external interference in regional affairs or the introduction of "color revolutions."
China's approach to developing cooperation with Central Asian countries is in stark contrast to the policies of the US and its allies. We have noticed that the US and the West are attempting to pressure Central Asian countries using the old methods, which goes against the principle of non-interference in the affairs of sovereign states. The West's attempt to view cooperation with Central Asian countries from the perspective of promoting anti-Russia and anti-China agendas is unacceptable. This completely differs from our approach.
We believe that cooperation between China and Central Asian countries will play an important role in promoting alignment and collaboration between the Eurasian Economic Union and the BRI, and is also in line with President Putin's initiative to establish a "Greater Eurasian Partnership."
GT: Has Russia adjusted its foreign policy focus in the last two years? Some voices suggest that, to counter Western sanctions and diplomatic isolation, Russia is seeking to increase cooperation with Asia-Pacific countries and play a more important role in the Asia-Pacific region, such as conducting joint exercises with many Asia-Pacific countries. Do you agree with this viewpoint?
Morgulov: Some people believe that due to the deterioration of relations with the West, Russia is turning toward the East. I completely disagree with this view. Russia has always been an integral part of the Asia-Pacific region. When formulating its foreign, economic, and investment policies, Russia has always taken into account the significant advantages of this direction.
Over the years, Russia has engaged in extensive cooperation with countries in the Asia-Pacific region. Russia holds an important position in the foreign policies of these countries, many of which are Russia's key strategic partners.
We are strengthening cooperation through existing multilateral mechanisms. The Shanghai Cooperation Organization is a core element of the Asia-Pacific regional architecture. 2024 will mark the fifth year since the establishment of a strategic partnership between Russia and the ASEAN. Russia actively participates in various activities led by the ASEAN. Thanks to these efforts, we have laid the necessary foundation for further development of multi-field cooperation with the Asia-Pacific region and will continue to strengthen multi-level contacts with countries in this region based on this foundation.
