China's central bank and top financial regulator on Friday issued a guideline on stepping up financial support for the housing rental market, vowing to offer more innovative credit products and services for housing rentals and to expand financing channels for the housing rental market.
The guideline from the People's Bank of China (PBC) and the National Administration of Financial Regulation (NAFR) is the latest effort by Chinese policymakers to stabilize the real estate market, by both defusing risks and meeting housing needs for key population groups such as young workers.
The guideline contains a total of 17 measures in four areas. Financial support will focus on key areas and weak links in the housing rental market, mainly in large cities, and will focus on addressing housing difficulties for groups such as new urban residents and young workers.
The guideline aims to offer financial support for various entities to build, renovate and operate long-term rental housing, revitalize exiting housing inventory, and increase the supply of affordable and commercial rental housing.
Among the main measures, the guideline, which was sent to the PBC and the NAFR's local branches and various types of banks, calls for an increase in credit support for housing rental development and construction. Commercial banks are being encouraged to extend loans for entities, including real estate developers, for developing and constructing rental housing projects. The standard loan term would be three years and will not exceed five years.
On the purchasing side, the guideline also encouraged commercial banks to extend loans for entities that purchase housing rental for employees. The term for such loans cannot exceed 30 years and the amount should not exceed 80 percent of the property value.
China has made stabilizing the real estate market a top priority for economic work in 2024. The tone-setting Central Economic Work Conference held in December called for active and prudent efforts to defuse risks in the property sector, address the reasonable financing needs of real estate enterprises, and accelerate the development of a new model for the real estate sector.
Also on Friday, following a national central bank meeting, the PBC vowed to actively support the stable and sound development of the real estate market, strengthen monitoring, and take various credit policies to meet the reasonable financial needs of various types of real estate companies.
The US military has grounded its entire fleet of Bell Boeing V-22 Osprey tiltrotor aircraft after a deadly crash off Japan last week. Sputnik spoke to veteran Russian combat aircraft pilot Vladimir Popov to get a better sense of the problems associated with the fledgling technology, and why the US refuses to just close the Osprey program down.
A US Air Force Special Operations CV-22B Osprey flying from Yokota Air Base in Tokyo to Marine Corps Air Station Iwakuni on Okinawa went down over the East China Sea on November 29, killing all eight airmen onboard.
The crash was at least the 40th accident involving an Osprey since the aircraft's introduction into service with the US military in 2007, with crashes killing at least 53 US service members to date.
The Osprey program is the realization of an idea going back over a century ago of a tiltrotor, also known as a convertiplane - an aircraft with the ability to take off and land vertically using helicopter-style rotors attached to its wings, and which can adjust them during flight to a something closer to an airplane turboprop engine-style configuration. This dramatically increases the convertiplane's speed characteristics relative to those of an ordinary helicopter (up to doubling them).
The United States, the Soviet Union, Nazi Germany and Britain were the first countries to begin experimenting with tiltrotor designs, with each country building prototypes from the 1930s into the early post-war period before concluding the technology was too revolutionary to be implemented effectively using equipment and materials that existed at the time.
The USSR began work on a modern-day iteration of the convertiplane in the 1970s with the Mil Mi-30 Vintoplan (lit. 'Rotorplane') project, which featured an airplane-style fuselage design and characteristics allowing it to carry up to 32 people or up to five tons of cargo. The project, envisioned as a prospective replacement for the Soviet and Russian rugged Mi-8 workhorse series fleet of helicopters, was abandoned in the mid-1990s due to lack of funding after the USSR's collapse. The Osprey project, designed by Bell and Boeing in the 1980s and first flown in March 1989, entered mass production in 2007, and has since been introduced into service with the US Marines Corps, Air Force, Navy, and Japan's Ground Self-Defense Force. The aircraft can carry up to 24 combat troops or nine tons of cargo. The V-22 is the only convertiplane to be mass produced by any nation, with over 400 built to date.
But as often happens with complex, innovative engineering designs, the glory of having the first fully operational, mass-produced convertiplane is also a heavy burden to bear, with the United States military not only reveling in the Osprey's advantages, but suffering from its flaws, with the V-22 suffering dozens of crashes and at least 16 hull losses to date.
Last week's crash in the East China Sea was the fourth fatal incident involving a V-22 in less than two years, and follows the August 2023 Marine MV-22B crash on Melville Island, Australia during an exercise, killing three service members, the June 2022 crash of a Marine MV-22B in California, killing five troops, and an MV-22B crash in Beiarn, Norway in March 2022, which killed another four Marines.
Investigations into the latest incidents have pointed to technical problems (including a drive system failure caused by a malfunctioning gearbox in the case of the June 2022 incident in California), and pilot error in the case of the March 2022 crash in Norway.
Investigators are yet to offer details on what may have caused the November 29 CV-22B crash off Japan, although eyewitnesses have reported fire coming from one of the aircraft's engines and the Osprey reportedly flying upside down before an explosion spewed wreckage into the surrounding water.
Sunk Costs
Speaking to Sputnik about last week's Osprey crash, and asked why the US military continues to use the convertiplanes despite their crash-prone nature, Honored Military Pilot of Russia Vladimir Popov explained that it likely has to do with the resources the Pentagon has expended on the project.
"The fact is that financial resources have already been invested into the aircraft's creation and implementation," the retired Air Force Major-General with decades of service under his belt told Sputnik.
"Most likely, the engineers, designers, technologists and everyone who took part in the Osprey's development decided that its reliability can be assured, and that it can be improved in the course of operations," Popov said.
"They are likely hoping to get an effective machine, but everything remains in the stages of development and refinement. For now, of course, such an aircraft cannot really be used anywhere, since doing so means losses of personnel and money down the drain. The idea is good, but the implementation, not so much," the veteran pilot explained.
The problem with convertiplane technology at its current stage lies with the components allowing the aircraft to switch from vertical to horizontal flight mode, Popov said. "This node is 'charged' with a great deal of energy, because large loads hang on it. It may not be able to process the transition quite correctly" at times, resulting in accidents.
"Tiltrotors have been flying for a very long time, and they have a short service life. Thus, it's too early to say that it has already reached the peak of its operational maturity. What needs to be done is to clarify what went wrong in each specific case, and to approach the issue carefully and get to the bottom of it. What's also needed is to improve working with personnel, to conduct additional tests, and change the training of the pilot and crew members. The US may continue to operate Ospreys, but they need to think long and hard about how to do so without making sacrifices. Sometimes it's enough to replace only one bolt and everything will work as it should," Popov stressed.
Last week's accident may have been the result of any number of factors, from pilot error and equipment failure to errors in the mathematical calculations by the Osprey's onboard computer, Popov believes.
That said, the veteran pilot is convinced that tiltrotor technology has good prospects for the future, given its status as what is effectively a hybrid airplane/helicopter design that can accelerate to speeds of up over 550 km per hour, far above the roughly 300 km per hour achieved by modern helicopters, which have now maxed out as far as further improvements in speed characteristics go.
COVID-19 infections in China are at a low epidemic level and no unknown viruses or bacteria have been found during the monitoring of respiratory pathogens in China, according to Chinese health authorities on Sunday.
BA.2.86 and its subvariants, including JN.1 variant, have become the dominant variants in some countries, yet, their public health risk in China is low given their low proportion, Chang Zhaorui, a research fellow from the Chinese Center for Disease Control and Prevention (China CDC) told a press briefing on Sunday.
The proportion of BA.2.86 variant strains in the reported sequences in China is very low, but the proportion among imported cases has increased rapidly since November, and the growth trend has gradually converged with that of the world, Chang noted,
Since the first imported case of BA.2.86 variant strain was reported on August 31, a total of 160 sequences of BA.2.86 and its subbranches have been reported in China, including 148 imported case sequences and 12 local case sequences, but no severe or critical cases have been found, the research fellow from the China CDC noted.
According to a statement published by National Disease Control and Prevention Administration on Friday, the possibility of the JN.1 variant, a branch variant of BA.2.86, becoming a dominant strain in the country cannot be ruled out due to the subsequent impact of international strains and imported cases.
On November 21, the World Health Organization (WHO) adjusted BA.2.86 from a variant requiring global surveillance to a variant requiring attention, evaluating the risk of clinical severe infection as low and the overall assessment of public health risk as low.
Experts reached by the Global Times said infectious diseases are common throughout the world. New variants of the novel coronavirus can appear in the future at any time and people should get used to their existence. More attention should be paid to overlapping infections of influenza and other respiratory diseases.
In the past months, China has been experiencing a spike in respiratory disease.
Mi Feng, a spokesperson from National Health Commission, said on Sunday's press briefing that hospital visits for respiratory diseases across China have shown a downward trend.
Mi said that local medical institutes have been doing their part to ease pressure on major hospitals, accounting for 44 percent of total fever and outpatient visits.
The spokesperson called for the continued strengthening of surveillance and overall situation analysis for respiratory diseases and the allocation of medical resources to cope with the spike.
According to latest weekly report by the China CDC, the positive rate of influenza virus in the southern and northern provinces of China slowed down between December 4 and 10, and some provinces showed a downward trend.
China's Olympic champions believe the universal language of sport is a key to bridge communications for athletes as well as people of different countries and regions, as they continue their preparations for the Paris Olympic Games in 2024.
"Winning or losing is indeed the essence of competitive sports, but now I no longer think it's everything because we have something more valuable than victory," swimming queen Zhang Yufei told reporters at a forum held by the China Public Diplomacy Association in Beijing on November 22.
The essence of competitive sports goes beyond winning and losing, believed Zhang, who won six gold medals at the Hangzhou Asian Games.
Zhang's touching moment with Japanese swimmer Rikako Ikee at the Hangzhou Asian Games, where they embraced despite being rivals, became a memorable scene.
"We participated in the same discipline but it was until the final day of 50 meters butterfly final that she made onto the podium," Zhang said.
"Her ability to return to the competition is a miracle. It is her perseverance that inspired me to continue when facing a bad situation."
Zhang was referring a fever she caught on day four of her competitions at the Asian Games, when she had to continue to achieve her personal goal of becoming the MVP of the event, which required more gold medals at the time.
"It is her perseverance she demonstrated after wading through leukemia which sidelined her from competing after achieving six gold and two silver medals at 2018 Asian Games," Zhang noted.
Zhang's teammate Qin Haiyang, a breaststroke specialist who set a new 200 meters world record this year, noted that he hopes to inspire more people to participate in sports activities, expressing his desire to showcase not only athletic achievements but also the confidence, unity and friendship of Chinese athletes on the international stage.
The power of role models is limitless as gymnasts Zou Jingyuan and Zhang Boheng mentioned the influential figures in their sport, such as Li Ning, Li Xiaoshuang and Japan's Kohei Uchimura.
"Although we are competitors on the field, off the field, we are friends. Athletes worldwide share a common philosophy of developing modern gymnastics, innovating movements, and spreading the love for sports globally," Zou said.
All-rounder Zhang is often linked to Japanese gymnast Hashimoto Daiki, as the duo are being considered the top athletes in the sport. This year they have competed head-to-head in China at the Chengdu Universiade and the Hangzhou Asian Games.
"Although this year I won, but I don't think he is at top form. I expect to compete with him when both of us are in-form. Maybe the stage will be the Olympics next year," Zhang said.
"All the gymnasts in the world share a common philosophy, that is, to develop modern competitive gymnastics, constantly innovate movements, share our understanding of gymnastics, and our love for sports with the world," Zou added.
Off the field, interactions and friendships among athletes from different countries and regions highlight the Olympic spirit that unites the world, as two-time Olympic taekwondo champion Wu Jingyu, now chair of World Taekwondo Athletes Committee, underlines the communication among the athletes facilitate the Olympic spirit.
"In addition to athletic achievements, athletes' perseverance and pursuit of dreams are also part of the Olympic spirit. This Olympic family allows athletes to freely show and express the spirit of sports, inspire more people with spiritual strength," Wu said.
The China Academy of Art has welcomed the celebration of its 95th anniversary since its establishment in the recently inaugurated Liangzhu campus in East China's Zhejiang Province. As the nation's first comprehensive national institution for higher artistic education, the art academy mirrors the evolution of contemporary Chinese art and artistic education over the last century.
Gao Shiming, president of the academy, told the Global Times that Chinese President Xi Jinping's emphasis on the need to combine fine traditional culture with the Marxist stand, viewpoint and approach, also known as the "second integration," holds significant implications for art education. In addition, humanity is entering the "second Renaissance," to which China is making global contributions.
At a meeting on cultural inheritance and development in June, Xi called for the integration of the basic tenets of Marxism with traditional Chinese culture, known as the "second integration," which builds on the Communist Party of China's "first integration" of theoretical synthesis - the integration of the basic tenets of Marxism with China's specific reality, the Xinhua News Agency reported.
Ma Yifu, a renowned Chinese scholar, once asserted that Marxism has reactivated a socialist gene that exists in Chinese traditional cultural thought and social history, Gao said.
Common core values
Traditional Chinese culture and Marxism share common core values, such as the concept of equality. Chinese philosopher Wang Yangming's proposal of "cultivating moral consciousness, envisioning every individual as a saint," aligns with Marx's perspective on equality.
Similarly, the integration of Marxism and China's fine traditional culture has been vividly manifested in Chinese art, placing the people at the center and elevating them as the social subjects.
For instance, in the 1950s and 1950s, the Zhejiang school of figure painting, led by Fang Zengxian, employed techniques traditionally used for emperors, bodhisattvas and flora to portray ordinary farmers. This marked a significant period in China's millennia-old art history.
From its inception, the China Academy of Art envisioned an academic mission of "introducing Western art, organizing Chinese art, reconciling Eastern and Western art, and creating contemporary art." Over the last 95 years, the institution has walked alongside the history of modern Chinese art, responding to national crises and reinventing itself in the face of contemporary challenges.
During this period, two scholarly ideas have consistently unfolded: One represented by the inaugural dean, Lin Fengmian, which embodies the "integration of Chinese and Western styles." The other school of thought, pioneered by figures like Huang Binhong and Zhao Wuji, follows the path of "innovation within tradition." Zhao created a form of modern painting from within the folds of Chinese tradition. He activated certain elements of Chinese tradition by using modern art, creating an alternative, distinct and unique form of modern painting that gained global recognition.
"The last 95 years have seen the China Academy of Art charting a path in modern art education deeply rooted in the Chinese soil, reflecting a journey of artistic revival that is both grounded in tradition and independently innovative," Gao said.
What does a Renaissance require? "Prosperous technology, flourishing arts, developed commerce and a gathering of talents - we have all these elements now," Gao said.
'Second Renaissance'
He explained that the first Renaissance was catalyzed by an external factor - the Age of Discovery. Today, the internet serves as the great navigation of the 21st century. People in the world are not just witnessing a Renaissance in China but a global Renaissance in which China has started contributing to the world.
In the 21st century, art education in China has taken on a more significant role, serving as a catalyst for societal innovation. The current Chinese society craves innovation, creativity and self-transcendence. Igniting the primitive innovative capabilities of the entire nation is crucial.
"I often tell students not to confine themselves to being artists within the art realm but to become artists of the world," Gao said, adding that contemporary society demands the need for not just traditional artists but countless art professionals with the ability to innovate and imagine, solving real-world problems. This is the fundamental goal of the China Academy of Art - to foster a culture in which the entire art community contributes to the construction of a beautiful China and the high-quality development of the nation.
In the era of the first Renaissance, the world was not peaceful. Today, the world faces constant conflicts, making culture and art even more crucial as forces of reflection and reconciliation, guiding people into a more essential and expansive realm, allowing humanity a sense of transcendence.
The great French writer Flaubert once said, "Art and science met at the foot of the mountain and parted ways at the summit." The difficulty lies in people's journey not yet "reaching the summit," as people have technologized science and turned tools into technology.
Gao believes there's no need to rush; scientists and artists can engage in more philosophical exchanges. Simultaneously, people can start with specific initiatives, such as promoting a course called "illusion."
Scientists delve into the internal and physiological mechanisms of illusions, while artists design various illusions. This is a tangible course illustrating the fusion of science and art.
From another perspective, in the era of general artificial intelligence, people might leverage AI to become individuals with more extensive space and creative capabilities, akin to Da Vinci's versatility.
"As artificial intelligence advances, human artistic intelligence also grows," he said.
The highly anticipated Indonesian cultural festival kicked off in the opera hall of Beijing's Central Conservatory of Music recently to promote cultural exchanges between China and Indonesia and encourage people to learn more about the traditional Indonesian instrument the Kolintang.
Indonesian Ambassador to China Djauhari Oratmangun, delivered a speech saying that the Indonesian cultural performance held in Beijing is particularly important for the promotion of Indonesia's rich and colorful culture and enhancement of civil relations between Indonesia and China.
Oratmangun also stated that through this event, he hopes that the Kolintang instrument will be recognized by UNESCO in 2024.
Accompanied by the Kolintang, Oratmangun and his wife sang the Chinese song The Moon Represents My Heart, which resonated with the audiences and received thunderous applause.
This event serves as a bridge for cultural exchange between the two countries, enhancing cultural exchange and mutual learning, and strengthening the friendship between the two peoples, while promoting the healthy development of bilateral relations.
The extreme rainstorm witnessed in Beijing on July 21, 2012, the heaviest rainfall in six decades that left 79 people dead and caused widespread havoc in the capital city over a weekend, left deep scars in many people's hearts. Fortunately, when Beijing broke a 140-year-old rainfall record in the days between July 29 and August 2, the nightmare witnessed by Beijing residents over a decade ago were not replayed.
Based on flood prevention experience and lessons learned from previous rainfall disasters, including the catastrophic Henan floods in July 2021, Beijing appears to have made quantifiable to the city's disaster forecasting, relief, and response programs. There have been no major recorded roof collapses, backlash on the internet, damage of power lines, or flooded highway underpasses, scenes that were widely seen in the tragedy 11 years ago.
New technology and digital networks have become an important force in averting tragedy. The Beijing Haidian District Water Affairs Bureau utilized a cutting-edge smart system to direct emergency rescue operations throughout the district, as the system can map out the most optimal rescue route in record time.
The system utilizes visualization, integrated analysis of big data, and other technologies to understand the distribution and anomalies of approximately 3,000 water facilities and sensors across the entire Haidian area, and can provide real-time monitoring of the status of water channels, gates, and dams, and respond to warnings and forecasts speedily, the Beijing News reported.
Moreover, technologies such as the "Sky Eye" telescope, radar maps, and satellite cloud images have also played a significant role in this round of rainstorm warning. Since the start of the current round of rainfall on July 29, the "Sky Eye" smart system installed in some streets has remained vigilant. High-definition cameras installed on flood prevention emergency vehicles and rescue team helmets can monitor precipitation in real time, greatly improving the efficiency of flood responses.
"Early assessment, early warning, and early deployment" are the most significant forms of progress that the Global Times witnessed amid the slate of heavy rain that hit Beijing.
While visiting and reporting in waterlogged Zhengzhou, the capital of Henan Province, in July 2021, Global Times reporters found that the consensus among the public was they received warning notifications "too late." While other areas in Henan Province had already been hit by heavy downpours, Zhengzhou city government did not decisively put measures in place to stop gatherings, suspend classes, and require the closure of businesses, wasting critical time in flood prevention and missing a key rescue window.
The official investigation report on the severe rainstorm disaster in Zhengzhou which caused at least 398 deaths and missing, exposed serious misconducts in the city's response deployment, including inadequate warning, significant delays in emergency responses, and a lack of unified command at critical moments. These issues led to the highest disaster-related casualties seen in recent years, particularly with regard to the subway system and tunnel, which should not have occurred.
This time in Beijing, Global Times reporters found residents in the capital city received multiple flood prevention reminders via text from relevant departments before the heavy rain actually fell down. Beijing successively issued red rainstorm warnings, yellow lightning warnings, and blue wind warnings, reminding citizens to refrain from outdoor activities. Many organizations immediately issued directives for their employees to work from home.
News sources reported that in preparation, the Beijing Drainage Group initiated a top-level flood early-warning protocol, requiring all pump station personnel to be on duty. At the same time, a re-inspection and re-treatment of drainage facilities in key areas such as 155 depressed bridges and 249 subway stations, as well as a re-inspection of water pumps, backup power sources, flood control emergency equipment, and various monitoring systems in 87 rainwater pump stations across the city were conducted.
Power system companies also deployed emergency teams in advance. The State Grid Corporation of China (Beijing), for example, had 22 rescue teams with 510 personnel on standby, ready to transport power generation vehicles, small generators, lighting vehicles, and other flood control emergency supplies and equipment to be stationed in areas with strong rainfall forecasted by meteorological bodies.
Beijing's main cultural and tourism venues issued temporary closure notices soon after the Beijing city government temporarily asked to shut down access to all scenic spots on July 30.
All mountainous and water-related scenic spots and rural homestays in the heavily affected area of Fangshan district were temporarily closed and have stopped receiving visitors since then. All 17 tourist attractions in Huairou district were closed, and all homestays and folk accommodations were temporarily suspended to minimize risk.
Amid the heavy downpour sweeping through many parts of China, local authorities have stepped up efforts to counter flooding and power cuts. After days of search and evacuation efforts, disinfection work has begun in residential and commercial areas in the city over this weekend.
Throughout three major rainstorms, nonstop rescue missions have been executed with countless heartwarming stories. In the last decade, what has changed is our continuously honed ability to respond to floods, while what remains unchanged is the resilience exemplified by every individual, an essence of the Chinese civilization.
We believe that in the future, we will face floods and other natural disasters with even greater composure and unite together to withstand the tests they bring.
"Surging demand for metals used in electric vehicle batteries has kicked off an international race to mine the deep seas. And there are no rules," read a recent New York Times article. Nauru Ocean Resources Inc (NORI), a subsidiary of The Metals Company (TMC), a Canadian firm, applied for a mining permit through Nauru, prompting the International Seabed Authority (ISA) to initiate the development of rules and regulations within a two-year timeframe as per the United Nations Convention on the Law of the Sea.
While countries discuss the rules, opposition to deep-sea mining is growing. However, the ISA Council meeting in July 2023 did not approve deep-sea mining, and the agenda for the establishment of deep-sea mining regulations has been tabled until 2024. In this unknown realm of the seabed, how should the benefits and risks of deep-sea mining be balanced? How can the conflicting interests of a demand for energy transition and environmental protection be resolved? Experts told the Global Times that discussing deep-sea mining requires the balancing of various interests such as resource development, environmental protection, and sustainable development. In this process, global collaboration is crucial to ensure the best practices in environmental protection, sustainability, and social responsibility in mining activities.
A new option
With the increasing development of global technology, the demand for metals such as copper, nickel, aluminum, manganese, zinc, lithium, and cobalt is skyrocketing due to technologies like wind turbines, solar panels, electric vehicle batteries, and smartphones. According to the World Bank, the production of minerals, such as graphite, lithium, and cobalt, could increase fivefold by 2050 to meet a growing demand for clean energy technologies.
While some reports suggest that there are currently sufficient metal deposits on land from a technical standpoint, mining companies believe that these resources may not be economically viable to extract without causing environmental damage.
Moreover, some key minerals are highly dependent on a single country. Taking nickel as an example, almost half of the total global nickel production is from Indonesia, and this proportion is continuously increasing. Following this trend, nickel may replace palm oil as the main cause of deforestation in the country. Similarly, the Democratic Republic of Congo (DRC) produces 60 percent of the world's cobalt. A report released in 2022 by Fitch Solutions, a subsidiary of Fitch Ratings, stated that the increasing political instability risk in the DRC could add pressure to the global battery supply chain.
In the above situation, analysis suggests that deep-sea mineral resources provide a new option to meet human mineral demands, and many countries have started to pay attention to deep-sea mining.
Deep-sea mining typically refers to the extraction of three types of mineral resources in the deep sea: Polymetallic (manganese) nodules, cobalt-rich ferromanganese crusts, and massive sulphides.
"Deep-sea mining would extract cobalt, copper, nickel, and manganese - key battery materials - from potato-sized rocks called "polymetallic nodules" on the ocean's floor at depths of 4 to 6 km (2.5 to 4 miles). They are abundant in the Clarion-Clipperton Zone (CCZ) in the North Pacific Ocean between Hawaii and Mexico," read a Reuters report.
Analysts said that unlike land mining, which usually causes severe damage and widespread pollution locally, deep-sea mining only involves extracting polymetallic nodules that are not connected to the seabed. Some mining companies also claim that deep-sea mining projects cause less damage to nature compared to land mining in areas such as rainforests, and it is also more cost-effective.
Waiting for approval
However, due to deep-sea mining being a nascent industry for countries around the world, and with only a small portion of the deep-sea floor having been explored so far, people have limited understanding of it.
Therefore, while deep-sea mining brings possibilities, it is also a source of concern in terms of commercialization, marine ecology protection, and legal regulation. Some analysts believe that deep-sea mining technology is still in its relatively early stages, and there is uncertainty in commercializing new technologies. Until deep-sea mining technology is confirmed as being effective, newly discovered mineral deposits cannot be listed as "reserves" in the valuation of company assets. Without a clear value, it is difficult to raise the substantial funds needed to build mining infrastructure.
Moreover, just like the unexplored mineral resources under the sea, there are also many undiscovered marine organisms there, and the impact of deep-sea mining on these organisms is unknown. Therefore, now more and more people are starting to pay attention to the impact of deep-sea mining on the deep-sea ecological environment.
Reuters reported that a new study found that the cost of repairing the damage caused by deep-sea mining would be twice the cost of extraction.
Zhu Jianzhen, director of the School of Management of Guangdong Ocean University, told the Global Times that the formulation of deep-sea mining rules involves multiple international institutions and legal frameworks, with the key ones being the United Nations Convention on the Law of the Sea (UNCLOS) and the International Seabed Authority (ISA).
UNCLOS is the main legal framework for international maritime law, which sets out the basic principles and rules for ocean activities. The ISA is a subsidiary body of the United Nations responsible for the management of international seabed areas and their resources. The ISA consists of 168 member states and the European Union, and these members elect 36 members of the Council, which has the authority to formulate specific policies within its jurisdiction based on the general policies of the Authority, Zhu said.
In 2021, the government of Nauru wrote a letter to the ISA stating its plans to fund Canada's TMC company's deep-sea mining activities and hoped that the ISA would finalize regulations on deep-sea mining within two years. However, in July this year more than 20 countries had reportedly called for a suspension or ban on deep-sea mining during the ISA meeting, and as a result, the conference did not give the green light to deep-sea mining.
However, the member states reached an agreement at the last moment of the meeting to continue discussing regulations on deep-sea mineral exploitation and to advance this agenda by July 2024.
Zhu explained that the rules of the ISA only apply in the international seabed and contract areas (the international seabed area is defined by UNCLOS as an area that does not belong to any country's territory or exclusive economic zone; contract areas are designated areas within the international seabed area in which the ISA has signed contracts with developing countries or organizations to authorize activities in those areas). These rules do not apply to deep-sea mineral resource exploitation in national territorial waters, exclusive economic zones, and continental shelves, which are subject to the sovereignty jurisdiction of individual countries and their domestic laws. At the international level, rules for deep-sea mining must be established through international cooperation and negotiations to ensure widespread recognition and compliance on a global scale, Zhu noted.
Open playing field
Currently, countries such as France, New Zealand, Germany, Chile, Vanuatu, and Palau are skeptical about deep-sea mining and advocate for precautionary suspension measures until a set of environmental protection rules and compliant inspection systems is agreed upon. Additionally, some well-known multinational companies have joined the debate. Google, BMW, Volvo, and Samsung have pledged not to use metals from polymetallic nodules until further understanding of the impact of mining on the deep sea is obtained.
While on the other side, countries such as Nauru, Norway, Russia, Mexico, and the UK support the advancement of this industry. Norway, in particular, announced plans in June of this year to approve companies for mining in its own waters.
Zhu told the Global Times that that deep-sea mining has garnered attention and investment from multiple countries. Among them, China, the US, Russia, Canada, and Japan possess comparative advantages in terms of resources. China boasts abundant deep-sea mineral resources and has already conducted mineral exploration in the international waters of the Western Pacific and the Indian Ocean. The US, with its extensive coastline, including areas like Hawaii and Guam, is believed to possess a substantial amount of deep-sea mineral resources. Canada and Russia primarily possess deep-sea mineral resources located in the Arctic seabed. Japan, situated near the Pacific Ring of Fire, possesses abundant deep-sea mineral resources. Its deep-sea areas, particularly the Western Pacific, are considered one of the world's richest locations for polymetallic nodules.
Currently, countries such as China, the US, and Canada have implemented relevant strategies at the national level, with the management of deep-sea mining or deep-sea areas being an important component. These countries have also enacted laws and regulations on marine resources to regulate activities related to the development of deep-sea bed resources.
Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told the Global Times that China's seabed exploration and mining technology has reached a world-class level. By implementing deep sea technology innovation plans and promoting the involvement of state-owned enterprises, China has successfully achieved significant technological advancements and independent innovation in various areas, including full-ocean-depth manned submersibles, full-ocean-depth unmanned submersibles, and high-power artificial source electromagnetic detection technology.
Analysts pointed out that the current exploration and excavation of seabed minerals on a global scale is in an open playing field.
Lin believes that disputes over mining in these countries' own territorial waters are relatively small among countries, but deep-sea mining in international waters will inevitably involve geopolitical issues, in which the ISA does not have strong binding power. For example, although the ISA has not yet issued any deep-sea mining licenses, it has signed over 30 deep-sea resource exploration contracts with more than 10 countries.
Zhu noted that the National Oceanic and Atmospheric Administration (NOAA) is a crucial agency of the US government. According to its official website, the agency has been conducting ocean exploration activities for over 20 years and has mastered several "game-changing technologies" such as underwater mapping, underwater robotics, and remote sensing.
Despite the ongoing disputes, it does not mean that deep-sea mining cannot proceed. When the prices of onshore minerals reach a certain level, countries will engage in large-scale development, and relevant environmental protection measures will gradually become clearer, experts noted.
In light of the numerous controversies and challenges surrounding deep-sea mining, Zhu believed that a balanced approach is necessary to address the diverse interests of resource development, environmental protection, and sustainable development. By fostering global collaboration, mining activities can be guaranteed to adhere to the best practices in environmental protection, sustainability, and social responsibility. Only by striking a balance between resource demands and ecological conservation can we achieve long-term and sustainable development of underwater resources.
To tell the truth, when Chinese new energy vehicles shone brightly at the recent 2023 International Motor Show in Germany, we heard some envious and even jealous remarks. But we didn't expect Europe's response to be so "excessive." On September 13, Ursula von der Leyen, President of the European Commission, announced that they are launching an anti-subsidy investigation into Chinese electric vehicles (EVs). The European Union's decision is regrettable because while it acknowledges its own issues, it has chosen the wrong direction in haste and has not found the right solution to the problem.
The reasons provided by the European Union for initiating this anti-subsidy investigation are unfounded. It claimed that Chinese EVs receive "enormous state subsidies," resulting in artificially reduced prices that disrupt the European market. However, this does not align with facts. Chinese EVs are sold at significantly higher prices in Europe compared to China, whereas certain European EVs are priced lower in the Chinese market than in Europe.
Currently, Chinese EVs do not have a high market share in Europe, but they are gaining momentum. This has nothing to do with subsidies. Chinese EV companies have achieved "high quality and reasonable prices" by leveraging technological advancements and innovation, lowering costs, and improving overall quality, which has won the favor of consumers.
For both European consumers and major European car companies, Chinese EVs are not a "wolf" but a beneficial presence. EVs produced in Europe are often sold at high prices. The entry of Chinese EVs has provided European consumers with more and better cost-effective options, which is a tangible benefit. Any crackdown on Chinese EVs is bound to harm the affordability that European citizens currently enjoy.
A European Union diplomat told the media, "We cannot afford to lose our car industry." This statement unveils the true intention behind EU's actions: protectionism under the guise of "fair competition." The EU claims to "protect" Europe's automotive industry, but adopting policies of trade protectionism has been proven ineffective and costly in the past. The traditional European automotive industry has been strong and lying in its comfort zone for many years, which has led to a lack of drive for innovation in EVs and competitiveness. To change this situation, it is essential to step out of the comfort zone and enhance the competitiveness of their products in a fully competitive market.
If Europe lacks the confidence and courage to win the market through fair competition, it will be impossible to establish competitiveness in the EV industry. Keeping the EV industry in a protective green house will never lead to its growth and strength. Chinese EVs serve as a catalyst and motivation for the European EV industry to strive for innovation. Trade barriers cannot bridge the innovation gap; it will only exacerbate the situation further.
As the Chinese Ministry of Commerce responded, the automotive industries of China and Europe have formed a mutually beneficial relationship, so any harm to one side will also harm the other. The Chinese market is the largest overseas market for many EU car companies, and China provides a favorable business environment for European cars. If you take a look at the roads in Germany, you will see mostly German cars, while in France, you will see mostly French cars. The same goes for Japan and South Korea. However, on Chinese roads, you can find cars from all over the world, which vividly reflects the openness and diversity of the Chinese market. All of this should be cherished and valued by Europe.
In interpersonal relationships, reciprocity is important. China and Europe should create a fair, non-discriminatory, and predictable market environment for the mutual development of the electric car industry. They should jointly oppose trade protectionism and work together to address global climate change and achieve carbon neutrality. Particularly, the EU itself is also a victim of protectionism. The Inflation Reduction Act enacted by the US last year used similar tactics to protect its domestic industries, which caused strong opposition in Europe, with many saying, "The Americans stabbed us in the back." Now, the EU is responding to foreign competitors with the same mind-set, and it should feel ashamed of its decision today.
In her speech on Wednesday, von der Leyen mentioned the example of the solar industry, stating that "we have not forgotten how China's unfair trade practices affected our solar industry." The solar industry is indeed a worthy example to review. In 2013, the EU followed the US in imposing anti-dumping tariffs on imported solar panels from China, citing the same reason of "unfair subsidies." However, the result was that because of lack of competition, the European solar industry languished, and many companies increased costs by importing Chinese products through other channels.
Looking back today, we can draw two lessons from what the solar industry suffered: First, competitiveness cannot be gained through protectionism, and blindly engaging in protectionism often backfires; second, trade disputes and differences ultimately need to be resolved through mutual negotiation. We hope that the EU can extract the correct information from the case of the solar industry, listen more to the voices of the business community, and have fewer politicized interpretations. After all, towering trees cannot grow in a greenhouse, and a steel-winged eagle cannot fly out of a birdcage.
In recent months, the Philippines has frequently provoked China in the waters surrounding Ren'ai Reef and Huangyan Island, attracting extensive international attention. Will the Philippines take the risk of relying on the support of the US to forcefully transport construction materials and personnel to the illegally "grounded" warship in Ren'ai Reef, thereby triggering an armed conflict between China and the Philippines? Although it has not been ruled out that the Philippines may take such extreme measures to further exacerbate the situation in the South China Sea and the China-Philippines relationship under the misjudgment of the situation, the probability of them taking such extreme actions is still relatively low.
Successive Philippine governments have shown periodic swings in dealing with relations with China. These swings can even occur within the same presidential term. The predecessor of former President Rodrigo Duterte,in the first four years of his presidency, distanced the Philippines from the US, reduced provocations in the South China Sea and actively participated in the Belt and Road Initiative. However, over the last two years in his presidency, the situation in the South China Sea had been tense. And he restored the Philippines' key military agreement with the US.
Since President Ferdinand Marcos Jr entered office in 2022, this trend in foreign policy is still evident. He not only became the first Philippine president to visit the White House in 10 years but also granted the US military access to four military sites. The Philippines under his leadership frequently clashed with China over the South China Sea issue. However, he also visited China in early 2023 and made a guarantee that the military bases accessible to the US would not be used in any offensive action, expressing a certain degree of goodwill toward China. Therefore, it is premature to say the Philippines will continue to antagonize China in the future based solely on its current "tough policy" in the South China Sea.
Furthermore, some domestic factions in the Philippines believe that the US would provide substantial support to the Philippines in the event of a military conflict with China. This is a serious strategic misjudgment influenced by two misleading signals. Firstly, in February 2023, the US and the Philippines expanded the Enhanced Defense Cooperation Agreement (EDCA). The Philippines agreed to allow US military presence in four new military bases, believing that the US would reciprocate and provide strong support to the Philippines in the event of a military conflict with China. Additionally, the US has expressed its intention to invite the Philippines to join its "Indo-Pacific" multilateral security cooperation mechanism, creating a new "Quadrilateral Security Mechanism" including the US, Japan, Australia and the Philippines to address potential conflicts in the South China Sea. However, the US has never publicly committed to militarily assisting or supporting the Philippines in the event of a military conflict with China. The Philippine government should abandon such illusion.
The current policy of provoking China by the Philippines is not well-received within the ASEAN. ASEAN member states hope that, amid the backdrop of the US and its allies using the Indo-Pacific Strategy to confront China, China can exercise maximum restraint, and they do not want their own countries to be used by the US as "pawns" in its efforts to contain China. Currently, the escalating provocations by the Philippines in the South China Sea do not align with the overall interests of ASEAN countries in pursuing "peace, security and stability." It is clear that the ASEAN countries will not take sides with the Philippines and will not allow the situation to escalate further.
Relevant Philippine authorities should not underestimate China's determination and capability to maintain stability in the South China Sea. Currently, Philippine authorities and Western media have been continuously engaging in attention-seeking, live-streaming provocations. Besides exposing their attempts to wage a "public opinion war" to discredit China, it further demonstrates the lack of strategic thinking by the Marcos Jr government on critical issues related to regional peace and stability, putting the Philippines' national image and national security in a perilous situation. Philippine authorities should promptly cease such meaningless sensationalism and return to the path of resolving South China Sea disputes through negotiations and dialogue with China, and by reaching the Code of Conduct in the South China Sea as soon as possible.
