China's top anti-graft authorities have launched an investigation into Li Jiping, a former vice president of China Development Bank (CDB), for suspected severe violations of disciplines and law. The move marks the latest in a series of efforts by China to tackle corruption in its financial system.

According to a statement released on Wednesday by the Central Commission for Discipline Inspection (CCDI) and the National Supervisory Commission, Li Jiping is currently under disciplinary review and supervision investigation. Li, who started his tenure at CDB in March 1994 and served as vice president from September 2008 to January 2016, is being investigated eight years after his retirement.

Li's investigation follows that of two other former vice presidents of CDB. Wang Yongsheng was probed in July 2023 and arrested on January 11 on suspicion of accepting bribes. Similarly, another CDB vice president, Zhou Qingyu, was investigated in May 2023 and arrested on December 14 for suspected bribery and using influence to accept bribes.

These investigations underscore China's commitment to deepening its fight against corruption across various sectors, with a particular focus on the financial system. A communiqué issued by the CCDI on January 10 highlighted the significance of the anti-corruption campaign within the financial sector.

On February 22, Pan Gongsheng, the governor of the People's Bank of China, the central bank, emphasized the complex and grave situation in the financial sector's fight against corruption. He called for a rigorous investigation into corruption within the financial sector.

The China Development Bank, established in 1994, is a major state-owned financing institution tasked with supporting China's economic growth in crucial industries and underdeveloped areas. With direct oversight from the State Council, CDB boasts total assets of 18.2 trillion yuan ($2.5 trillion) as of the end of 2022 and employs over 10,000 workers. This investigation into one of its former high-ranking officials signifies a continued and serious approach to eradicating corruption in China's financial system.

China's consumer price index (CPI), the main gauge of inflation, rose by 0.7 percent in February year-on-year, confirming a clear signal trend toward rising domestic demand across China's economy which delivered imports growth in the first two months of 2024.

China's CPI rose by 0.7 percent in February year-on-year and rose 1 percent month-on-month, according to data from the National Bureau of Statistics (NBS) on Saturday. The upward trend of prices month-on-month in China since December 2023 has shown further signs of strengthening.

China's producer price index (PPI), which measures costs for goods at the factory gate, fell by 2.7 percent year-on-year in February, data from NBS showed Saturday.

The three-month continuous rise in consumption prices month-on-month confirms a signal of the recovery of domestic demand across the Chinese economy that was reflected in China's increase in imports in the first two months of 2024. The country's overall economic performance in the first quarter may exceed expectations, according to one expert.

China's dollar-denominated imports in January and February increased by 3.5 percent year-on-year, marking two consecutive months of growth, according to General Administration of Customs of China released data on Thursday.

The strong year-on-year and month-on-month price increases in February suggest that consumption in China has indeed returned to normal levels, even after excluding seasonal factors which include the traditional consumption surge during the Spring Festival holidays, Tian Yun, an economist based in Beijing, told the Global Times on Saturday.

In the face of a continuous price rebound in January and February, we have reason to have higher expectations for China's domestic consumption indicators in January and February as well, Tian added.

If EU policymakers plan to register Chinese electric vehicle (EV) imports as reported, they should think twice before taking action. Customs registration will inevitably deal a heavy blow to market confidence, and bring losses that are hard to calculate for the bloc's green transformation efforts.

Reuters reported on Wednesday that the European Commission (EC) plans to start customs registration of Chinese EV imports. According to the report, registration will start the day after the plan is published in the EU official journal, which is likely to be in the coming days.

If the report is true, the move can be seen as a typical trade protectionism practice as it disrupts the global trade order, and violates international rules as well as basic economic laws. It needs to be corrected in a timely manner before import registrations cause actual damage to the market and industry chains.

Last year, the EC launched an anti-subsidy investigation into imports of battery EVs from China. If the EU announces customs registration for Chinese EVs before the anti-subsidy investigation ends, it will undoubtedly undermine market confidence.

At the very least, it is too early for the EC to discuss whether to start customs registration, because its investigation has yet to be concluded. Otherwise, it will raise suspicions that EU officials and politicians, with no factual basis or the conclusion of an investigation, have adopted the presumption of guilt rather than the presumption of innocence against Chinese EV imports.

According to Reuters, customs registration means China's EVs may be hit by EU tariffs from the point when they are registered if the EU trade investigation later concludes that they are receiving "unfair subsidies." Although the report has not yet been confirmed, it is clear to everyone that if the EU takes a more aggressive stance toward China's EVs, a strong tendency of protectionism will not have a positive effect and may even escalate the conflict.

China's Minister of Commerce Wang Wentao in February said that China is highly concerned about the trade remedy investigation targeting Chinese EVs and other products, while also expressing strong dissatisfaction regarding the investigation, which lacks a factual basis.

Hopefully, the EU can heed China's voice so as to prevent a further escalation of the situation.

Subtle new trends have emerged recently in the EU, once an unwavering supporter of free trade. More measures have been taken to protect the EU's internal market from external competition. With the rise of trade protectionism in the EU, efforts to isolate itself from competition in the rest of the world have expanded to many fields such as EVs, photovoltaic products and wind turbines, sparking criticism from supporters of free trade. Some analysts can't help but ask: will the EU close its doors?

It is believed that the EU doesn't want to close its doors to international competitors, because the negative impact on the economy is obvious. If the EU builds a fence blocking out affordable foreign products and trying to give local companies an unreasonable competitive advantage, then an increase in the prices of final consumer goods will be transmitted to European consumers.

More importantly, EU companies will become more and more reluctant to promote technological development and innovation as a result. The European economy will lose its vitality.

We believe European policymakers have the strategic wisdom to prevent this from happening. More efforts are needed to restore market confidence. That's why we suggest that the EU should curb trade protectionism, provide a fair business environment for Chinese enterprises, and avoid registering Chinese EVs for potential additional tariffs. It is the only way the EU can maximize its own economic interests.

Graphic: Xu Zihe/GT

China’s securities regulator vows to protect small investors' interests, strengthen market regulation

The 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC), China's top political advisory body, kicked off its second session on Monday, marking the start of the annual two sessions. The second session of the 14th National People's Congress (NPC), the country's top legislature, is set to open on Tuesday.

This year's political gatherings carry extra weight for the Chinese economy, as 2024 will be a crucial year for the realization of the goals and tasks of the 14th Five-Year Plan (2021-25), and the new government is set to submit its Government Work Report to the NPC annual session for deliberation for the first time.

The session usually reviews past achievements and sets development targets for the current year and beyond.

At a time when mainstream Western media outlets are flooded with reports of China grappling with various difficulties - deflation, a property crisis, mounting debt burdens and a foreign capital exodus - the two sessions will serve as a crucial window for the world to observe the country's economic development and understand its policy direction for the year ahead, which Western media outlets said investors are watching closely for signals of a "bazooka-like stimulus." 

It's not unusual to see Western media outlets run bearish reports badmouthing the Chinese economy around the major political event every year. For instance, a report published by the Financial Times on February 27, 2023, was headlined "The implications of China's mid-income trap," while CNN ran an article entitled "China's economy had a surprisingly good start to the year, but it may not last" in March 2022.

Yet, China still accomplished its 2023 GDP growth target despite downward pressure and challenges, and the underlying trends of a rebound in the economy and long-term growth remain unchanged. Such economic fundamentals further prove that the ill-intentioned "China collapse" theory cannot withstand the test of time.

Why have Western predictions about a hard landing for the Chinese economy never come true? The key lies in the inability to understand that China's economic development has its own rhythm and policy direction, which will not be influenced by Western hype. The reason why the two sessions are of great importance to China's economy is not only because of the GDP target issued during the meetings, but also because of the policy direction set for achieving stable economic development in the year ahead.

There is no denying that China's GDP target has been the focus of world attention, which is not surprising given its huge economic size and important implications for the global economy. The Chinese government has always stressed the importance of the quality of economic development, rather than just the growth rate, but GDP, as a major measure of a country's economic strength, is still one of the most important economic metrics in China. 

It is true that China's economic growth has slowed in recent years amid unprecedented and complicated domestic and external market challenges. This is mainly because the economy is undergoing a period of adjustment and transformation. Despite the difficulties and downward pressure, China is still on a solid footing and its GDP growth rate remains relatively fast among the world's major economies. 

If anything, China's consistent economic performance over the years is the best proof that it has the ability to transform its economy while maintaining growth momentum.

During China's two sessions, much attention is often paid to the country's GDP growth target. However, it is crucial to look beyond mere numbers and understand the implications of new policies and measures to be implemented by the Chinese government to address economic challenges. Because the policy direction not only promises positive influence on China's economic prospects, but also presents opportunities in the country's future development.

The Chinese economy is resilient, has huge potential and vitality and its growth momentum will continue to strengthen and lead to a bright future, according to a spokesperson for the Second Session of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC).

Economic issues have been a focal point for political advisors ahead of the gathering, and it is the opinion of all political advisors that in 2023 the Chinese economy withstood the external pressure and overcome internal difficulties, and the economy has been on a general recovery track, according to Liu Jieyi, spokesperson for the second session of the 14th CPPCC National Committee.

There is a good foundation and favorable conditions for promoting high-quality development and the long-term positive economic trend will continue to be consolidated and strengthened, Liu said, responding to a question about the current status of the Chinese economy.

Solid progress has been made in achieving major social and economic growth targets, high-quality development and Chinese way of modernization in 2023, Liu said.

The CPPCC held quarterly seminars on the country's macroeconomic situation and in-depth consultations on the stable operation of the overall economy, with topics ranging from fiscal, monetary, employment and headline economic policies, and provide suggestions and strategies to stabilize market expectations and boost investor confidence, according to Liu.

Biweekly consultations meetings were held on fostering the high-quality development across the financial sector and promote the stable and sound development of the property sector and field trips were made to promote the high-quality development of the private economy, strengthen the digital transformation of small and medium-sized enterprises, and improve the resilience and safety level of the industrial and supply chains.

The CPPCC also arranged study trips to small and medium-sized banks to help tackle the risks of smaller financial institutions and provide advice on implementing the task mapped by during the Central Economic Work Conference held in December.

Its suggestions on fostering new-quality productive forces were highly valued and in many cases adopted by relevant government departments, Liu said.

The second session of the 14th National Committee of the CPPCC will begin on March 4.

China's economy grew 5.2 percent year-on-year in 2023, finishing above last year's official GDP target of around 5 percent, and underscoring the resilience and potential of the Chinese economy in the post-COVID-19 era.

Escalating US trade protectionism, and its behavior of politicizing economic issues and erecting more trade barriers to affect fair competition, will only harm the development of its own auto industry in the long run, He Yadong, a spokesperson of China's Ministry of Commerce (MOFCOM), said on Thursday.

Chinese cars are popular in the global market because of their innovative features and high quality rather than alleged low-price dumping, He said, responding to a question over media reports saying that the Alliance for American Manufacturing had asked the US government to block the import of low-cost Chinese automobiles and auto parts from Mexico.

In addition, a Reuters report said on Wednesday that Republican US Senator Josh Hawley has introduced legislation to hike tariffs on Chinese vehicle imports amid so-called concerns about the potential competitive impact on American car companies.

In recent years, the US side has erected barriers to thwart Chinese car imports, like levying additional tariffs, excluding Chinese car brands from US government procurement and implementing discriminatory subsidy policies, He said.

While the US erects barriers to hinder Chinese carmakers, China is always open to carmakers from across the world, He said. 

US carmakers have fully enjoyed the dividends of China's huge market, with the sales volume of American brands far outpacing Chinese brands in the US. Protectionism by the US will only hinder its own auto industry's development in the long run, He said.

The MOFCOM spokesperson urged the US to respect the rules of the market economy and the principle of fair competition while correcting its non-market practices in order to build a fair environment for the long-term development of the auto industry.

The EU has also stepped up trade protectionism against Chinese automobiles, and recently, the EU's antitrust regulator launched an investigation into Chinese trainmaker CRRC Qingdao Sifang Locomotive, a subsidiary of CRRC Corp, the world's biggest producer of rolling stock.

Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times that the protectionist moves of the US and EU violate the WTO principle of fairness, and robust exports of Chinese new-energy vehicles (NEVs) reflect the strong international competitiveness of China's industry chains rather than so-called subsidies.

In China, the subsidy granted to NEVs was completely phased out as of the end of 2022. In order to maintain fair competition, provinces across China were required to stop subsidies for NEVs starting from 2018, and subsequently, national subsidies were phased out in an orderly fashion, Cui said.

Cui is positive about the development of China's NEV sector on the back of its strong innovation capability, complete manufacturing system and strong supply chains.

China's vehicle exports surged 57.9 percent year-on-year to a record of 4.91 million in 2023 as the country's automakers expanded their presence overseas, according to data from the China Association of Automobile Manufacturers.

China-US economic and trade cooperation is a stabilizing force in bilateral relations. The Chinese side is willing to join hands with the US to implement the important consensus reached at the San Francisco meeting between the two heads of state to jointly promote the steady and healthy development of China-US economic and trade relations, Chinese Vice Commerce Minister Wang Shouwen said when meeting with a US Chamber of Commerce delegation led by the chamber's President and CEO Suzanne Clark in Beijing on Tuesday.

China will unswervingly promote high-level opening-up and it is hoped that member companies of the US Chamber of Commerce will continue to be deeply rooted in the Chinese market and achieve win-win development, Wang said.

German auto giant Volkswagen Group has signed an agreement with Xpeng, a Chinese electric vehicle (EV) maker to co-develop new EV models tailored for Chinese market, where broad consumers are embracing clean, environment-friendly cars.

The two parties agreed to commence strategic tech collaboration, bundling their respective strengths to explore the dynamic Chinese market, and will co-develop two intelligent internet-connected vehicles tailored for Chinese consumers, according to a statement sent from Volkswagen Group to the Global Times on Thursday. 

The agreement includes the joint purchase of vehicle equipment and auto parts, in addition to the use of innovative technologies in auto design and engineering.

The first two EV models are scheduled to hit the road in 2026, with one planned to be a sport utility vehicle, Volkswagen said. 

Ralf Brandstätter, a board member of Volkswagen AG for China region, said China is the world's largest and fastest-growing EV market, noting that the partnership with XPeng increases economic competitiveness of vehicle production in a price sensitive market environment.

He Xiaopeng, chairman and CEO of XPeng, said the company will provide Chinese consumers with the best EV products combining Volkswagen's vehicle making and engineering capability and XPeng's smart EV technology. 

In December 2023, Volkswagen completed the acquisition of shares amounting to 4.99 per cent of the total issued and outstanding share capital in XPeng, following the announcement of the partnership in July 2023.

Another Chinese EV maker Nio in December last year signed a pact for an investment of $2.2 billion with Abu Dhabi-based CYVN Holding. And, Dutch automaker Stellantis NV also announced in October 2023 to invest 1.5 billion euros to acquire approximately 20 percent of China's EV start-up Leapmotor, underlining the advantage and competitiveness of China's EV manufacturing.

At the end of 2023, China’s population was 1.4097 billion, a decrease of 2.08 million from the previous year, with urban permanent residents totaling 932.67 million. The annual new births reached 9.02 million, while deaths hit 11.1 million, resulting in a natural growth rate of -1.48‰: official statistics