Editor's Note:

The recent escalation of conflict between Palestine and Israel is unusually intense in terms of casualties. Despite being the most important third party in resolving the Palestinian-Israeli conflict, the US vetoed a UN Security Council resolution that would have called for "humanitarian pauses" to deliver lifesaving aid to millions in Gaza. Allowing the conflict to escalate in this manner will lead to more innocent civilian deaths and injuries. During a joint press conference with Israeli Prime Minister Benjamin Netanyahu in Tel Aviv on October 12, US Secretary of State Antony Blinken said, "You may be strong enough on your own to defend yourself, but as long as America exists, you will never, ever have to. We will always be there by your side." US President Joe Biden also promised unprecedented military assistance to Israel. In recent years, the US has faced international criticism for sidelining Palestinians' right to statehood and showing biased support for Israel. When will the US become a true peace mediator?

Pure lip service

The Israeli-Palestinian conflict is currently the most complex and urgent international political issue facing the international community. The essence of the conflict lies in how Jews and Palestinians can achieve a just and lasting peace based on the "two-state solution." After World War II, Zionist organizations gradually sought support from the US to replace British presence in the region. On November 29, 1947, the United Nations General Assembly passed Resolution 181 on the partition of Palestine, deciding to establish an Arab state and a Jewish state in the region. On May 14, 1948, Israel was officially established based on this resolution, and the US, under President Harry Truman, quickly became the first country to recognize Israeli sovereignty. Since the early 1950s, the US, along with the UK and France, has issued declarations assuming security obligations toward Israel, and the military and economic assistance provided by the US to Israel has been continuous.

During the third Arab-Israeli war in 1967, Israel not only occupied all the Arab territories as stipulated in Resolution 181, but also captured the Sinai Peninsula of Egypt, the Golan Heights of Syria, and other Arab territories. Faced with the new battlefield situation and Israel's occupation of East Jerusalem, the Gaza Strip, and the West Bank, the United Nations Security Council (UNSC) passed Resolution 242 on November 22, 1967, urging Israel to withdraw from the occupied territories in exchange for peace and recognition of borders. The principle of "land for peace" embodied in Resolution 242 has become an internationally recognized approach to addressing the Palestinian-Israeli conflict. During the same period, as the rivalry between the US and the Soviet Union intensified, Israel, which held an increasingly strategic position in the Middle East, became a trump card for the US to contain Soviet expansion in the region.

After the fourth Arab-Israeli war in 1973, Egypt, burdened by its long-term involvement in the war, hoped to achieve peace with Israel. Israel also realized that simply occupying Egyptian territory and implementing defensive measures would not effectively solve its own security issues, so it began to explore the possibility of peace with Egypt. Subsequently, the US intervened in the peace process between Egypt and Israel, with then Secretary of State Henry Kissinger shuttling between Arab countries and Israel, conveying messages and successfully easing hostilities between the warring parties.

In March 1977, then US president Jimmy Carter said, "There has to be a homeland provided for the Palestinian refugees who have suffered for many, many years." However, such remarks were quickly met with strong opposition from Jewish groups in the US. In 1978, Carter hosted the Camp David peace negotiations between Egypt and Israel, which led to the normalization of relations between Israel and the first Arab country. The Camp David Accords included a call for relevant parties to engage in discussions on Palestinian autonomy in the West Bank and Gaza Strip.

For a long time, the international community has advocated for the establishment of an independent and sovereign Palestinian state with East Jerusalem as its capital in the West Bank and the Gaza Strip. However, the US has repeatedly disregarded the rights of the Palestinians. In November 1988, during the 19th extraordinary session of the Palestinian National Council, the establishment of the State of Palestine was declared, but its borders were not determined. On November 26 that same year, then US Secretary of State George Shultz issued a statement stating that the Reagan administration refused to grant a visa to Yasser Arafat, the chairman of the Palestine Liberation Organization (PLO), who was expected to attend a United Nations conference. This move by the US drew condemnation from many countries.

After the end of the Cold War, the US organized several peace negotiations on the Palestinian-Israeli conflict, but has since been unable to effectively resolve the differences between Palestine and Israel. The Roadmap for Peace in the Middle East launched in 2003 openly supports the establishment of an independent Palestinian state. The plan was proposed by former US president George W. Bush and was determined through joint consultations by the US, Russia, the United Nations, and the EU, with the aim of resolving the Palestinian-Israeli conflict in three stages. The biggest difference between the Roadmap plan and previous plans was that it explicitly proposes the concept of two states "living side by side."

However, an article published in the Foreign Policy on October 19 argues that the "United States has long maintained that it supports a two-state solution to the conflict. But the reality is that little more than lip service has been paid to this goal, and with each passing crisis, Washington grows more and more aligned with Israel."

At the United Nations level, the US has continuously obstructed the efforts of Palestine to seek statehood. On November 29, 2012, on the International Day of Solidarity with the Palestinian People, the UN General Assembly passed a resolution upgrading Palestine's status at the UN to "non-member observer state" status. However, at the Security Council level, the United States has consistently vetoed Palestine's bid for full UN membership.

Ignoring Palestinians' right to life and of return

Since the end of the Cold War, especially after the Oslo Accords in 1993, the US has continued to dominate Palestinian-Israeli peace negotiations and still considers Israel as its main ally in the Middle East. The cooperation between the two countries includes enhancing Israel's military early warning capabilities, joint counter-terrorism efforts, intelligence sharing, and the prevention of the proliferation of weapons of mass destruction. However, due to the US neglecting the concerns of the Palestinians and failing to address their demands on issues such as the status of Jerusalem, the delineation of the West Bank border, and the right of return for refugees, the negotiations have repeatedly failed.

The stagnation of the Palestinian-Israeli peace process has had a negative impact on the internal Palestinian sentiment, leading to new factional disputes. In the new century, the US has championed Western political values such as "democracy" and "free elections" and exerted pressure on the Palestinian Authority to hold open elections. After the 2006 Palestinian Legislative Council elections, Hamas was widely supported and formed the government. However, the US and Israel, claiming that "terrorist organizations cannot join the government," jointly intervened in Palestinian internal affairs, leading to political instability in Palestine.

Furthermore, the US has tacitly allowed or even condoned Israel's unilateral blockade of the Gaza Strip, resulting in the continuous deterioration of the local economy and living conditions, ultimately leading to the current Israeli-Palestinian conflict.

"Washington traditionally shields its ally Israel from any Security Council action." After the US recently vetoed a humanitarian aid resolution at the UN Security Council, Reuters made this comment. For nearly half a century, the US has used its position as a permanent member of the Security Council to block numerous resolutions condemning Israel.

On December 6, 2017, then US president Donald Trump formally recognized Jerusalem as the capital of Israel and stated that the American Embassy would be moved from Tel Aviv to Jerusalem. His "new approach to conflict between Israel and the Palestinians" has further intensified tensions in the region. The fundamental cause of the latest round of Palestinian-Israeli conflict lies in the US abandoning its mediation efforts, thwarting hopes for peace between the two sides. Throughout previous Middle East peace negotiations, the US' bias and indulgence toward Israel have undermined the Palestinians' confidence in Palestinian-Israeli peace. After the failure of then Secretary of State John Kerry's mediation attempt in 2014, the US gave up on restructuring Israeli-Palestinian peace talks. Since then, neither the Trump nor Biden administration has initiated new peace dialogues.

Eroding basis for dialogue

In 2020, the "Deal of the Century" and the Arab-Israeli Abraham Accords promoted by Trump fundamentally eroded the basis for dialogue between Palestine and Israel. In the "Deal of the Century," mainly drafted by Trump's adviser and son-in-law Jared Kushner, the US shifted its view of the Palestine-Israel issue to an economic development problem and proposed the construction of various "industrial zones" to relocate Palestinians to the Negev Desert in exchange for economic development opportunities, compromising their demands for an independent state, territorial boundaries, clarification on the status of Jerusalem, and the right of return for refugees. The US no longer regarded the Palestinian issue as the core of the Middle Eastern problem, no longer adhered to the principle of "land for peace," and no longer considered East Jerusalem to be the future capital of the Palestinian state, which was met with Palestinian displeasure.

On issues such as Jewish settlements in the West Bank, the US also condones and tolerates Israel's occupation of Palestinian land, undermining the foundation of peace talks between Israel and Palestine. The so-called Abraham Accords limits the scope of the Palestinian capital to small towns in the suburbs of East Jerusalem and does not grant the right of return to Palestinian refugees to their previous land.

For a long time, the majority of Arab countries have adhered to the principle of "solving the Palestinian-Israeli issue first before discussing Arab-Israeli relations" in their development of relations with Israel, in order to promote lasting peace in the entire Middle Eastern region. However, the US hopes to reconstruct its Middle East alliance strategy by adjusting Israel's relations with Arab countries, especially with Gulf Arab countries, in order to strategically contain hostile countries in the region such as Iran and Syria. Therefore, against the backdrop of the unresolved Palestinian-Israeli issue, the US is eager to promote the normalization process of Arab-Israeli relations, gradually "economizing" and marginalizing the Palestinian issue.

In September 2020, the US brokered the signing of the Abraham Accords among Bahrain, the United Arab Emirates, and Israel. Although this move has led to the normalization of relations between some Arab countries and Israel, it has also sparked strong anger among the Palestinian people due to further marginalization of the Palestinian issue. In recent years, as rumors of the normalization of relations between countries like Saudi Arabia and Israel driven by the US increased, feelings of being "abandoned" and "forgotten" among the Palestinian people only grew stronger, and it was only a matter of time before intense resistance against Israel erupted.

Amid the escalating crisis in the current conflict, the US has not only failed to reflect on its own Middle East policy but also continues to smear the resistance of the Palestinian people, turning a blind eye to Israel's illegal expansion into occupied territories. Following the outbreak of the current round of conflicts between Israel and Palestine, the US President, Secretary of State, Secretary of Defense have visited Israel, dispatched aircraft carrier strike groups to the Middle East, provided various military supplies to Israel, and vetoed relevant resolutions by the UNSC, allowing the conflict to escalate. In resolving the Palestinian-Israeli issue, the US should shoulder its due responsibility instead of treating the conflict like a tool in domestic political power struggles, let alone using it as an opportunity to attack other countries in the region. The US should cooperate with the international community to expedite a peaceful resolution to the conflict, rather than exploiting it for personal gain.

Global fund manager Fidelity International said on Tuesday that its planned layoffs in China is part of its ongoing global reshuffle to streamline its operations, stressing its long-term commitment to the Chinese market will not change, as proven by the company's continuous expansion in China.

Fidelity International is planning to lay off 20 people at its main unit in China, Reuters reported on Tuesday, citing sources familiar with the matter.

The headcount cut at Fidelity International's wholly-owned China fund unit, which currently employs 120 workers, is equivalent to around 16 percent of its total employees, said the report.

"No decision has been made and a review across all geographies and business lines is ongoing. Our long-term commitment to China market is unchanged," Fidelity International said in a statement sent to the Global Times on Tuesday.

In fact, Fidelity International expanded its presence in the Chinese market over the past years, betting on opportunities brought about by China's high-level opening up.

Recently, Fidelity International announced the opening of a new Beijing office, followed by a move of adding $30 million to the registered capital of its China funds unit, taking its overall capital base to $160 million, reflecting its confidence in the prospect of the Chinese market.

In a previous interview, Helen Huang, managing director of Fidelity International's China office, told the Global Times that China is one of the company's strategic markets in the world, eying growth in such fields as pension market, cross-border capital flow and investment advisory.

As one of the first global asset management companies to enter China, Fidelity International's presence in the market has been for nearly 20 years. Since 2004, the group has set up three offices in Shanghai, Dalian in Northeast China's Liaoning Province, and Beijing, with total employees exceeding 1,900, according to data on its Chinese website.

BMW is in the spotlight after "abnormal noises" were heard in the transmission shaft of some of its recent deliveries, sparking safety concerns and discussion on social media platforms in China on Friday.

The issue was highlighted at the consumer rights gala on Friday that coincided with World Consumer Rights Day. The 3.15 Gala, an annual show produced by China Central Television (CCTV), focuses on the protection of consumers' rights. It revealed the issue after interviewing owners of the BMW 530Li.

A car owner surnamed Li told CCTV that there was a sound like metal friction coming from the bottom of his BMW car, like the sound of coins falling to the ground.

The noise was a concern for Li. After he went to a local BMW 4S store for help, a member of staff at the store suggested that he replace the drive shaft, which would be a significant repair, especially for a new car.

Li tried to reach BMW customer service and was told to wait for progress on the issue or a reply from the 4S store regarding the problem.

Li is not alone. Some other owners of the BMW 530Li also filed complaints regarding similar issues.

The news jumped to the top of the search list on Sina Weibo with more than 54 million views as of press time on Friday.

In response, BMW said on its official Sina Weibo account on Friday it had previously conducted technical inspections and confirmed that this issue will not affect driving safety and can be solved through maintenance.

The company said that it will bear all related maintenance costs and will carry out further technical reviews and in-depth analysis so that it can give consumers more satisfactory answers.

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.