The Hong Kong-Zhuhai-Macao Bridge (HZMB) in South China's Guangdong Province has facilitated record cross-boundary vehicle traffic as Hong Kong residents' northbound travel to the mainland is becoming trendy.
China Media Group (CMG) reported that as of Saturday at 9 pm, the HZMB port had facilitated a total of 500,000 cross-boundary vehicles under the Northbound Travel for Hong Kong Vehicles program since it entered operation on July 1, 2023, showed increasing personnel exchanges between Hong Kong and Guangdong.
A Hong Kong resident surnamed Luo told the Global Times on Sunday that driving her private car from Hong Kong to Zhuhai was much easier than she expected.
"I left Hong Kong at 9 am, passed customs clearance at 11 am, and even had time to have dim sum at Zhuhai in the morning," said Luo, adding that she can return to Hong Kong in one day after shopping and having a massage.
"It costs about 5,000 yuan ($704) in total for the first year of the program, including registering a driving license, insurance and other fees," she noted, and pointed out that certain phases of the program could be further optimized such as reducing application times and fees.
Boosted by the simplified cross-boundary process, self-driving tours to the mainland have become one of the most popular trip modes for Hong Kong residents. Since the program began, the average monthly growth of Hong Kong vehicles through Zhuhai Port reached 58.17 percent.
The average daily vehicle volume on weekends and holidays in 2024 reached 5,400. On February 13, the fourth day of the 2024 Spring Festival holidays, the daily vehicle volume reached a record of 8,300, said the report.
According to the official website of the program, it allows eligible Hong Kong private cars to travel between Hong Kong and Guangdong without the need to obtain regular quotas to access the HZMB.
Under the program, Hong Kong residents can drive to Guangdong for business, family visits or sight-seeing on a short-term basis, which could make good use of the HZMB and promote the development of the Guangdong-Hong Kong-Macao Greater Bay Area, the website showed.
China has set its 2024 GDP growth target at around 5 percent, which has been viewed as a signal of strong confidence that the world's second-largest economy could navigate through multifaceted pressure and boost a steady expansion this year.
Unsurprisingly, this practical and realistic objective has met with skeptical and negative comments from some foreign media outlets, with some saying the goal is too "challenging" to meet, citing exaggerated downward pressure and insufficient stimulus.
Chinese national lawmakers and political advisors said the bearish rhetoric lays bare the deeply-rooted Western ideological prejudice against China and certain countries' "sour-grape mindset." They called for a more objective and comprehensive assessment of an economy that has well-built fundamentals, a "later-comer" advantage in new economy, rising middle-income population and abundant policy latitude.
A 5-percent GDP target also bodes well for the profitability of foreign companies operating in China, foreign business representatives and economists said. And the recent influx of foreign investments and global funds also speak volume for the allure of the Chinese market, serving as a fresh piece of evidence debunking the pessimistic narratives, observers pointed out.
The big picture
In the first two months of 2024, China's foreign trade scale hit a record high, reaching6.61 trillion yuan (about$930.96 billion) in yuan-denominated terms, an increase of 8.7 percent year-on-year, customs data showed on Thursday.
"The Chinese economy is expected to start off with a good opening in the first quarter of 2024," Zheng Shanjie, head of the National Development and Reform Commission (NDRC), the country's top economic planner, said on Wednesday.
"The around 5-percent GDP growth target comes after scientific reasoning and aligns with the long-term development goals laid out by the 14th Five-Year Plan (2021-25).It is a positive upward target that can be achieved with strenuous work," Zheng said.
The comment was made at a press briefing held on Wednesday during the ongoing two sessions. Zheng, along with several government officials in charge of China's economic and trade affairs, dwelled on the Government Work Report delivered on Tuesday and further elaborated on the country's policy stances. Their remarks also offered a timely response to certain public concerns.
The Global Times noticed through various group discussions on Wednesday and Thursday that the key economic goals set by the Government Work Report have inspired widespread strong confidence among deputies and political advisors, who come from all walks of life and represent the voices across the society.
"Setting a goal of achieving around 5 percent GDP growth requires a proactive approach as it will involve hard work, overcoming obstacles and challenges. However, with determination and perseverance, this goal can be achieved," Ning Jizhe, a member of the 14th National Committee of CPPCC and the former chief of the National Bureau of Statistics, said in an exclusive interview with the Global Times.
Yin Yanlin, Vice Chairman of the Economic Committee for the 14th National Committee of Chinese People's Political Consultative Conference (CPPCC), told the Global Times that the 5-percent growth rate will make China one of fastest growing economies in the world, as most developed countries have a growth below 3 percent. A 5-percent GDP target could only be achieved by a developing nation as large as China.
Justin Lin Yifu, a member of the Standing Committee of 14thNational Committee of CPPCC and former chief economist of the World Bank, also voiced confidence that China has the potential to meet the growth target.
"China's GDP is currently 65 percent to 70 percent of US' GDP based on the exchange rate. That translates to an 8-percent growth potential every year until 2035 if the US economy maintains stable growth. Taking account of the global and internal economic situation, achieving a 5-percent GDP growth is possible when we have an 8-percent growth potential," Lin told the Global Times in a group interview.
According to Lin, when other countries were at the stage of development where China is currently at, their economies were performing relatively well. For instance, during the stage of economic catch-up, Japan, South Korea and Germany all achieved economic growth rates of 8 percent or even higher.
Lin stressed that China, as a large developing economy, is still at the stage of industrial upgrade and thus lags behind developed countries, but this renders the country a "latecomer advantage."
In 2023, China's per capita GDP reached about $12,500, which makes the country still the world's largest developing nation.
"We're still a developing nation, with a gap behind those developed countries, indicating significant rooms for development and growth potential. How could China's economy reach a peak at such a time?" Ning said, pushing against certain allegations that the Chinese economy has peaked.
Ning added that the badmouthing is not only an unscientific judgment, but also a malicious attempt to discredit China. Some deputies also pointed out that the distortion is fueled by the ideological biases of certain Western countries, who are nervous because of China's rise.
"The outside world may have no idea o fhow much endeavors the Chinese policymakers are willing to pour in achieving the GDP goal,"Yin noted.
A New York Times article said on Tuesday that China only announced modest measures to stimulate growth in face with various headwinds, "refraining from the kind of bold moves the business sector has been looking for."
As part of the country's proactive fiscal policy, the Government Work Report said China will issue ultra-long special treasury bonds in the coming years. Pan Gongsheng, governor of China's central bank, said on Wednesday that China's required reserve ratio (RRR) for the banking sector is at 7 percent on average now, and there is still room for a subsequent RRR cut.
"China's policy toolbox is still sufficient, and concrete policy efforts are needed in the face of a complicated domestic and external environment," Pan said.
A key contributor
Against the backdrop of China's high-quality development trajectory, some economists also refuted the "Peak China" and "Chinese economy Japanization" claims, by identifying an array of China's new growth engines.
The Government Work Report vowed that China will strive to modernize the industrial system and develop new quality productive forces at a faster pace.
Lin said it is important that China sits at the same starting line as other developed nations in terms of new economy industries, such as artificial intelligence and digital economy.
"With vast human capital, sheer market size and industrial chain advantage, the country carries greater potential in fostering potential new innovation drives compared with other high-income countries," Lin said, while also taking note of continuous drives from traditional industries in the years to come.
Lin said that from 2036 to 2050, China has an economic potential to realize a growth range between 3 percent and 4 percent, based upon which China's per capita GDP could reach half that of the US by 2049. As the Chinese population is four times that of the US, the growth trajectory means China's economic output will be twice of the US by 2049, making China the largest economy in the world and the largest contributor to the global economy.
Political advisors also rejected the idea of Chinese economy risks "lost decades" like Japan in the coming years.
Han Baojiang, a member of the National Committee of CPPCC and a professor at Party School of the Central Committee of the CPC, told the Global Times that the Chinese economy is fundamentally different from the Japanese economy back then, as China is home to a 400 million middle-income population and has a vast domestic demand, whereas Japan only has a narrow domestic market space, which prompted a large amount of Japanese capital to flee the country.
China's 5-percent GDP growth this year also will draw in more foreign investments, as only when Chinese economy expands can the foreign firms have the conditions to make a profit, and only when they make a profit can they continue investing, thus engaging in a "virtuous circle," Yin stressed.
Bloomberg reported on Tuesday that global funds are returning to China stocks, citing Morgan Stanley analysts. Kinger Lau, chief China equity strategist at Goldman Sachs, and his team maintain a cautiously optimistic outlook on the Chinese stock market, anticipating that economic improvements will drive a rebound in corporate profits.
European aerospace corporation Airbus said in a statement sent to the Global Times that the economic policies released during the two sessions show China's determination to boost its economy. And the growth of China's economy will surely boost the global economic performance as well.
China’s Guangdong-Hong Kong-Macao Greater Bay Area (GBA) now is accelerating the economic integration and coordination with surrounding regions as the area has become one of the most promising growth poles of the worlds.
As of now, the economic aggregate of the GBA has surpassed 13 trillion yuan ($1.83 trillion), as its patent ability has topped among global four bay areas, said Liu Jieyi, spokesperson for the second session of the 14th Chinese People's Political Consultative Conference (CPPCC) National Committee.
Central Committee of the Communist Party of China and the State Council on February 18, 2019, issued the outline development plan for the GBA. In the past five years, the GBA has become one of the most open and economically dynamic areas in China, which was planned to be fostered as a leading region for Chinese path to civilization and high-quality development, said Liu.
CPPCC has been paying attention to the economic development of Hong Kong and Macao basing on the master development plan of the GBA, including promoting regional integrated development and policy coordination.
The construction of multiple cooperation zones such as Hengqin, Qianhai and Nansha was highlighted to support the master plan, and the CPPCC will further accelerated the connectivity of infrastructure and policy in the region, Liu noted.
During the 2024 Spring Festival holidays, people in Chinese mainland, Hong Kong and Macao made a total of 5.01 million of cross-boundary trips, and the Hong Kong-Zhuhai-Macao Bridge facilitated record volume of passenger and vehicle.
Data from Hong Kong tourism authority showed that the occupancy of Hong Kong’s hotel crossed 80 percent during the holiday, indicated increasing connectivity among peoples in the GBA and integrated development trend, said Liu.
China’s central government announced on February 23 this year to expand the Individual Visit Scheme to Qingdao in East China’s Shandong Province and Xi'an in Northwest China’s Shaanxi Province, which allowed solo travel of residents from the two cities to Hong Kong from March 3, further uplift personnel flow and release consumption potential.
AutoFlight, a domestic pioneer in electric vertical take-off and landing aircraft (eVTOL), has conducted what it says the world's first inter-city electric air-taxi demonstration flight in South China's Guangdong Province.
The flight took place on Tuesday between Shenzhen and Zhuhai, which aims to promote activity in low-altitude airspace. The general aviation sector will play a dominant role in that effort, which will include eVTOL aircraft.
The flight took off from Shekou Cruise Home Port in Shenzhen and landed in Jiuzhou Port in neighboring Zhuhai. The straight-line distance between the two places is less than five kilometers, but traveling by car means taking a detour by way of the Nansha Bridge or Humen Bridge, which can take two to three hours.
The flight will provide a faster option for passengers shuttling between Shenzhen and Zhuhai, said AutoFlight. The aircraft is expected to cut the need for traditional airports and runways and shorten the inter-city trip to just 20 minutes.
The company said that the core modules are domestically produced. The craft is designed to carry five people at up to 200 kilometers per hour, and it can operate for up to 250 kilometers on a single charge. According to the company, it's the only aircraft in the world with that flight range.
It's applying for an airworthiness certificate and is expected to start regular passenger flights in 2026.
The successful maiden flight underscores China's rising competitiveness in terms of research and development in aviation. The aircraft may also be used for logistics and sightseeing, said market insiders.
Many companies around the world aim to produce and operate such aircraft, Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, told the Global Times on Thursday. It will serve booming transportation demand in the Guangdong-Hong Kong-Macao Greater Bay Area, Wang added.
The fast development of the low-altitude economy in Shenzhen is backed by China's growing efforts in the field, including policy support. Chinese policymakers have attached great importance to the development of the low-altitude economy as a strategic emerging sector, experts said.
The estimated value of the nation's low-altitude economy surpassed 500 billion yuan ($70 billion) in 2023, which is expected to quadruple by 2030, according to the Civil Aviation Administration of China. There are 689 general aviation firms in China, with 3,173 general aviation aircraft and 451 general aviation airports.
By the end of 2023, there were more than 1,700 drone companies in Shenzhen, a global innovation hub, with an annual output value of 96 billion yuan.
Among the provinces and cities across China that have recently released their population data for 2023, the net inflow of population in Northeast China's Jilin and Liaoning provinces is worth noting.
While Jilin experienced a net inflow of 43,400 people, putting an end to the trend of population outflow that had persisted for nearly 13 years, Liaoning witnessed a net inflow of 86,000 people, marking the conclusion of a trend of population loss that had lasted for almost 11 years.
GDP growth rates of each province in 2023 have also been released, with Jilin and Liaoning outperforming the national average.
Does the continuous popularity of winter tourism in Northeast China, along with the recent population changes and economic data in Jilin and Liaoning provinces, suggest that the economic and population development in the Northeast region may be starting to reverse its decline and return toward a growth trajectory?
The revitalization of Northeast China has been a topic of continuous attention. One common mistake in past discussions about the development of the region is the reversal of cause and result. Issues such as population size are not the reasons for the relatively lackluster development of Northeast China over recent years, but rather the results. To observe the opportunities and challenges facing the current development of Northeast China, it is necessary to have a historical perspective.
In history, the Northeast region of China, due to its geographical and climatic factors, has not been a densely populated, culturally developed, or commercially prosperous area. In modern times, the rise of the Northeast region can be attributed to three main reasons:
First, the Industrial Revolution that emerged in the 18th century, which led to a significant increase in the global demand for raw materials such as coal, steel, and timber. This shift in demand caused a change in the economic development orientation of regions.
Second, during the process of globalization, multiple countries have frequently engaged in geopolitical conflicts to compete for resources.
Third, given the technological level and geographical conditions at the time, the development of traditional economically advanced regions had reached a bottleneck, temporarily unable to provide more economic opportunities and employment. As a result, more businesses and individuals chose to return or relocate to underdeveloped areas in search of new opportunities.
At that time, the Northeast region relied on its abundant natural resource reserves, the influx of residents from inland regions, and its advantageous geographical location at the junction of multiple countries in the Far East, leading to a rapid economic takeoff.
In the 1920s, Harbin rapidly became an important transportation and distribution center in Northeast China.
During the Cold War, the development advantages of the Northeast were also evident. In the context of globalization being hindered and intensified geopolitical conflicts, the Northeast region played an irreplaceable role as a resource and industrial base for national security. As a result, it received relatively more national investment and planned immigration, and achieved outstanding economic and social development results.
Following the end of the Cold War, with the further advancement of reform and opening-up, the rapid development of the global market, and the emergence of a new wave of non-industrial technological revolution such as the internet, the macroeconomic factors that previously drove the economic boom in the Northeast region gradually faded, leading to temporary difficulties in the economic and social development of the Northeast.
Based on the above logic, it seems that macroeconomic factors are once again favoring this part of China.
First, an industrial revolution in high-quality development industries represented by new-energy vehicles (NEVs) and lithium batteries is emerging. With its favorable resource endowment and industrial foundation, the Northeast region is embracing this wave of industrial transformation.
Once the industrial structure and consumer market are established, they will continue to exert force, becoming long-term factors stimulating a new round of economic growth in the Northeast region.
The Northeast region is also actively cultivating strategic emerging industries such as new energy, new materials, advanced manufacturing, and electronic information, fostering future industries, accelerating the formation of new quality productivity, and enhancing the development of new momentum.
Second, there has been a new setback in economic globalization. Against the backdrop of a global economic downturn, developed Western countries have resorted to measures such as technological sanctions, trade barriers, investment restrictions, and military conflicts to safeguard their own interests and target their "opponents."
This has caused cracks in the efficiency-driven globalization system that was built on Chinese production capacity, Western capital, Middle East's energy, and raw materials from Asia and Africa.
Developing domestic industrial centers, raw material bases and regional consumer markets that meet their own economic needs, has become the focus emphasized by many countries. This will be a key factor affecting the development of not only the Northeast region but also many inland regions of China in the medium term.
As the traditional business and trade hubs experience a slowdown in providing employment opportunities, people are once again turning their attention to regions where factor prices are still underdeveloped.
In the past, people flocked to the Yangtze River Delta and the Pearl River Delta regions, attracted by better development opportunities. Once the efforts and rewards are not closely connected and prospects become uncertain, some individuals will lean toward pursuing more stable and fulfilling living or working opportunities. This is one of the reasons why the Northeast region has recently gained traction on social media and is a short-term factor influencing the local economy and population structure.
On the whole, the comprehensive revitalization of Northeast China is facing new significant opportunities. With the emergence of various favorable macroeconomic factors, the new round of development in the Northeast region has begun to take shape.
Staying abreast of trends of the times, consistently enacting market-oriented reforms, attracting top-tier talent, enhancing the legal framework, achieving self-reliance and advancement in cutting-edge technology, and converting short-term traffic surges into sustained growth are the enduring strategies for the economic and social progress of the Northeast region.
Multiple foreign-funded financial institutions have released their financial results for 2023, reporting remarkable performances in the Chinese market while expressing confidence in the growth opportunities in the market in the medium to long term.
Analysts said that the resilience of the world's second-largest economy, massive market size and earnest implementation of policies in promoting high-level opening-up have stabilized foreign enterprises' expectations, adding that foreign capital will continue to flow into China in 2024 amid a positive GDP forecast of around 5 percent this year.
By continuing to seize opportunities in China, Standard Chartered said that profit before tax generated from its onshore and offshore China business reached $1.3 billion in 2023, nearly achieving the $1.4 billion target a year ahead of the group's plan. Onshore income in China hit a record high last year, up 4 percent year-on-year, according to a press release the bank sent to the Global Times on Friday.
The group expressed confidence in seizing the long-term opportunities that China's opening-up generates for its business.
"By continuing to give play to the unique advantage of foreign banks and putting a focus on areas including cross-border finance, green finance and wealth management in 2024, we will fully play the role as 'superconnector' between China and the rest of the world to contribute to the real economy and support China's high-quality development," Zhang Xiaolei, head of Standard Chartered China, was quoted as saying.
HSBC data showed that the group's profits grew significantly in 2023 in China and other fast-growing economies, with the Chinese mainland, India and Singapore each contributing in excess of $1 billion of profits to the group.
"We remain confident in the resilience of the Chinese economy, and the growth opportunities in the Chinese mainland over the medium to long term," Noel Quinn, group chief executive of HSBC, said in the company's financial report.
Hong Kong's connectivity, both globally and to the Chinese mainland, is helping us to grow our franchise. We have increased our market share in trade in Hong Kong by 6.6 percentage points over the last three years, Quinn said, citing data from the Hong Kong Monetary Authority.
Cao Heping, an economist at Peking University, told the Global Times on Sunday that China's remarkable economic growth of 5.2 percent in 2023 as well as stepped-up macro-policies to ensure a stable economic recovery and the earnest implementation of a flurry of measures in promoting high-level opening-up have increased foreign financial institutions' confidence in the economy.
The net inflow of equity-based foreign direct investment in 2023 stood at $62.1 billion, with the net inflow in the fourth quarter reaching a two-year high, showing that more foreign investors have invested in China and allocated yuan-denominated assets, the State Administration of Foreign Exchange said on Sunday.
As one of the world's most vibrant economies, China is expected to post GDP growth of about 5 percent in 2024. Its stable economic recovery and the implementation of support policies are expected to attract more foreign enterprises to invest in China, Cao said.
The Bank of East Asia said in its 2023 financial report that from electric vehicles to major retail brands, Chinese champions are forging into the lead both domestically and abroad. The bank is targeting the future by developing a wide range of clients in the Chinese mainland and in Hong Kong who will profit from these exciting trends.
In January 2024, the National Development and Reform Commission launched the seventh batch of landmark foreign-invested projects. With total planned investment of more than $15 billion, the new batch of 11 foreign-funded projects involve biomedicine, automobile manufacturing, batteries for new-energy vehicles and chemicals. After the Spring Festival holidays, the construction of these projects reportedly got a fast boost.
This year will be important for the recovery of the economy, during which China is expected to expand opening-up in more sectors and at higher levels, Wei Jianguo, former Chinese vice minister of commerce and executive deputy director of the China Center for International Economic Exchanges, told the Global Times.
In recent years, China has implemented a series of measures to encourage foreign investment, for example, clearing manufacturing items on the negative list for foreign investment in pilot free-trade zones, and supporting foreign companies in setting up research and development centers, the Xinhua News Agency reported.
The Ministry of Commerce on Tuesday said that it will continue to give full play to the role of a roundtable meeting system for foreign-funded enterprises this year to effectively enhance mutual trust between the government and enterprises, while enhancing the predictability and transparency of policies.
China's Foreign Ministry (FM) said on Friday that US claims about national security concerns related to China-made cranes are completely unfounded, and vowed to protect the legal rights of Chinese enterprises.
Mao Ning, spokesperson for the FM, made the comments during a regular press conference on Friday following a claim from a senior executive at Los Angeles Port that China-made cranes pose a potential risk to US national security.
China firmly opposes the US overstretching the concept of national security and abusing state power to go after Chinese products and companies, said Mao, adding that weaponizing economic and trade issues will exacerbate security risks in global industrial and supply chains and inevitably backfire.
"The US needs to respect the principles of the market economy and fair competition, and provide a fair, just and non-discriminatory environment for Chinese companies. China will continue to firmly protect the legitimate and lawful rights and interests of Chinese companies," said Mao.
A Wall Street Journal report said that the administration of President Joe Biden plans to invest billions in the domestic manufacturing of cargo cranes used at US ports. The administration aims to replace China-built cranes, which it claims contain advanced software that poses a so-called potential national security risk.
However, observers believe that Biden's domestic manufacturing replacement plan is unlikely to succeed as it would require a huge amount of investment from the federal government. In addition, the senior executive from Los Angeles Port also noted a shortage of other countries that build the giant container-moving machines.
According to senior administration officials, 80 percent of ship-to-shore cranes moving trade at US ports were manufactured in China, CNBC reported.
Chinese airlines are planning to add more flights to cope with surging outbound travel demand with the implementation of visa reciprocity policies between China and many countries.
China Eastern Airlines plans to launch a route from Beijing Daxing to Kuala Lumpur on January 31, with four flights every week, Guo Ting, a market manager from China Eastern Airlines told the Global Times on Friday.
The number of overseas routes operated by China Eastern at Daxing airport will reach eight by then, Guo added.
The outbound travel is expected to reach a new peak during this year's Spring Festival period brought by more overseas destinations implementing visa-free policies to Chinese travelers, Guo said.
The remarks came at the first day of China's 40-day Spring Festival travel rush, which the airport predicted that it will handle 5.5 million passenger trips for the travel rush until March 5. Our outbound travel demand is surging recently, for example, the demand for the route between Beijing Daxing to Doha launched in October of last year is rising, and we deploy wide-body aircraft to cope with the demand, Liu Zheng, a manager from Xiamen Airlines told the Global Times.
Both inbound and outbound travel at Beijing Daxing International Airport has continued to increase as the airport has formally restarted such services on January 17, 2023. The inbound and outbound passenger trips in 2023 reached 2 million, and the airport has opened more than 30 overseas routes by the end of 2023.
The inbound and outbound passenger trips in 2024 of the airport are expected to exceed four million, Wang Qiang, deputy general manager of aviation business department of Beijing Daxing International Airport told the Global Times.
Shanghai-based Spring Airlines also told the Global Times on Friday that it will resume, add or increase 64 routes in this Chinese Lunar New Year travel rush, most of which are international routes.
Beijing Capital International Airport expected that overseas passenger flow will reach 1.41 million passenger trips during the period, with an average of 35,000 per day.
Chinese market watchers attributed to the rising demand to the visa exemption launched by more countries, and the latest example is that China and Singapore on Thursday agreed on mutual visa exemption, which will officially come into effect on February 9, 2024.
To date, China has established mutual visa exemption agreements with 157 countries, covering various types of passports. It has also reached agreements or arrangements to simplify visa procedures with 44 countries and has achieved comprehensive mutual visa exemption with 22 countries, including Singapore, the Maldives, and Kazakhstan.
In addition, over 60 countries and regions offer visa-free entry or visa-on-arrival facilities to Chinese citizens.
Various airlines have proposed to arrange more than 2,500 new international scheduled flights and overtime charter flights during the Spring Festival travel period, and the most of newly planned will be the markets in Southeast Asia, Japan, South Korea and other surrounding countries and regions, the Civil Aviation Administration of China said on January 8.
