Shanghai police's creative mechanism in solving civil disputes shows wisdom of China's urban grassroots governance

At a commercial building on the busy Nanjing Road West in downtown Shanghai, two groups of people almost come to blows over a lease negotiation dispute. The situation threatens to escalate as angry lessees and lessors consider seeking redress at the courts if the conflict isn't resolved promptly.

But the dispute is quickly resolved, thanks to the first-time intervention of local law enforcement agencies. After a thorough analysis and in-depth discussions on matters including the contract implementation and lease structure adjustment, the two sides, in the presence of police, market supervisors, and lawyers, gradually calm down, and bring negotiations eventually back on track.

During the process, authorities "made use of multi-party resources that complement each other's advantages, and paid much attention to the settlement of multiple disputes," said a Shanghai-based lawyer Xu Hongmei, who participated in this mediation in June 2023. "That provides a guarantee for enterprises to conduct business without distractions," Xu told the Global Times.

The Nanjing Road West case is a vivid example of the "three-party linkage mechanism" by the Shanghai police. The establishment of the mechanism, which means police stations, judicial offices, and law firms work together in resolving grassroots disputes, was promulgated by the Shanghai Municipal Public Security Bureau in 2023.

An article published by the People's Daily on January 4, in which reporters visited police stations, judicial offices, and law firms in Shanghai to see how the creative mechanism resolved conflicts and disputes among the people, expounded on the lessons that grassroots governance could be drawn from the mechanism.

Chinese experts on government affairs management said the "three-party linkage mechanism," which embodies the integration of law, principle, and human sentiment, is another innovative attempt in improving Chinese grassroots governance ability, which can effectively promote social harmony and stability.

Resolve disputes in the bud

In daily life, some seemingly small matters, such as neighborhood, property, and parking disputes, are actually major events in the minds of the public. Sometimes, dealing with these matters may create a knot in the hearts of the involved parties, and the cost of legal action can be high.

The "three-party linkage mechanism" in Shanghai is a creative attempt to solve this problem. To date, the mechanism has been established in all 353 police stations across this city, according to the People's Daily report.

The jurisdiction of the Nanjing Road West police station is one of the city's key CBD (Central Business District) areas. The 1.62-square-kilometer area gathers 31 commercial buildings.

Multipurpose real estate is of huge economic benefit to the city, but it can easily be a source of various kinds of contradictions and disputes, among which commercial consumption disputes account for more than 50 percent, said Chen Wei, director of the police station.

"Such disputes may escalate quickly if they are ineffectively managed and controlled in the initial stages," Chen told the Global Times.

Early in 2019, the Nanjing Road West police station set up an in-house legal public service station at a Shanghai landmark shopping mall, and invited local law firms to sign up to serve at the station.

Since then, with the guidance of the "three-party linkage mechanism" introduced later, all 30 legal service stations in this area have covered more than 400 enterprises and public institutions, providing offline consultations for 268 people, and helping resolve 144 disputes of various kinds, according to the Jing'an Branch of the Shanghai Public Security Bureau.

Deploying the mediation work in advance is one of the important concepts of the "three-party linkage mechanism" in Shanghai's grassroots governance. Through early detection, early intervention, and early mediation, contradictions can be nipped in the bud.

In downtown Hongkou district, for instance, quarrels on matters including greenery and the height of the walls used to regularly happen among residential community neighbors. "Some people even came to me with iron chains, asking for an explanation," local grassroots Party official Zhu Zhenyu told the People's Daily.

The local police station then launched the "three-party linkage mechanism." Under the joint efforts of the police, judicial mediators, and lawyers, residents of the two communities buried the hatchet. Moreover, residential developers tore down the old wall and replaced it with a new 2.5-meter-tall one, "and that satisfied all the residents involved."

"As society develops, our work is also changing," Chen Jinbiao, deputy director of the Public Order Department of the Shanghai Public Security Bureau, told the People's Daily. "If some conflicts and disputes are not resolved in time, they are likely to escalate into criminal cases. Therefore, we move from passive protection to front-end prevention."

"This is also our exploration of adhering to and developing the 'Fengqiao experience' in the new era," Chen noted.

The "three-party linkage mechanism" is an integrated social governance measure that can give full play to the strengths of the police station, law firm, and judicial office in the mediation of mass disputes, Xiong Yihan, vice-president of the School of International Relations and Public Affairs at Fudan University, told the Global Times.

Xiong noted that in the past, police and lawyers often stepped in at the end of a civil dispute when relations were tense.

"At present, various organizations are emphasizing the need to identify and solve problems in the bud, which is a proactive problem-solving thought and strategy," he said.

The public security department is playing to its strengths by offering a platform, mobilizing the resources of all parties, lawyers, and mediators to actively make mediation more effective, Xiong noted.
Joint effort of multiple parties

The implementation and promotion of the "three-party linkage mechanism" has not only resolved a large number of contradictions and disputes, but has also mobilized more resources to aid in its implementation, thus, constantly building a solid foundation for grassroots governance, said observers.

The resolution of the lease negotiation dispute, which took place at a commercial building on Nanjing Road West in June 2023, was an example showing the joint efforts of multiple parties in making the mechanism work. That day, before the two involved sides turned the verbal argument into a physical fight, local police rushed to pacify them, and judicial mediators and lawyers arrived within 30 minutes to help mediate the conflict. Then, the district's commercial commission hosted an online coordination meeting for the two sides, with local market supervisors also in attendance.

At the city level, the Public Security Bureau in Shanghai has adopted a lively approach to resolving disputes. They work closely with the Party committee, and various government departments including education, civil affairs, health, market supervision, housing management, and judicial professional committees. This collaboration has led to the establishment of a more effective mediation system, resulting in a significant improvement in resolving vexing problems for the public.

In addition, for problems in key industries such as real estate and labor relations, the Shanghai public security organs rely on "reminder letters" and "comprehensive treatment proposals" to give relevant departments suggestions to deal with, promoting the transformation from solving isolated cases to dissecting a universal difficulty in one field.

Since 2023, Shanghai has issued a total of 136 suggestions and reminders in several areas, which have provided substantial support in improving the overall management of local communities, greatly contributing to enhanced grassroots governance.
Integration of law and human sentiment

Resolving conflicts and disputes among the public and helping the parties involved find closure and satisfaction is no easy task. However, the "three-party linkage mechanism" has proven to be an effective approach that considers the legal, rational, and emotional aspects of these situations comprehensively.

In June 2023, for instance, late at night, a tenant surnamed Wei contacted Gu Xiaofen, a community police officer at the Pujin Road police station of the Minhang Public Security Sub-bureau in Shanghai.

"I will fight them to the end!" Wei declared. Wei was frustrated with a three-party rent dispute involving the landlord and sub-landlord, and firmly believed that a power outage had intentionally been caused by the landlord as a form of punishment.

Gu and Wei engaged in a lengthy conversation that night, joined by a mediator from the judicial office. Together, they aimed to understand the challenges faced by the sub-landlord and find a way to resolve the impasse. Gu also sought legal advice from a lawyer to clarify the nature of the contract between the parties involved.

Thanks to the "three-party linkage mechanism," this complex rental dispute, with conflicting interests and intense emotions, was successfully resolved in a short time.

"Sometimes, relying solely on the police is not enough to convince both parties. By involving lawyers and mediators, the people involved can not only experience the warmth of mediation, but also receive professional legal services, making it easier for them to rationally assess their interests and reach a consensus," Jin Jie, the director of the Guidance Brigade of the Grassroots Basic Work Division of the Shanghai Public Security Bureau, told the People's Daily.

To encourage the public to seek legal assistance proactively, the Shanghai public security authorities have also implemented more intelligent and information-based methods, such as online mediation services. Since 2023, they have had over 50,000 online legal consultations and conducted over 11,800 scheduled mediations. These efforts aim to provide accessible and efficient support to those in need.

The "three-party linkage mechanism" embodies the characteristics of Chinese-style urban grassroots governance and is conducive to promoting social harmony and stability, Xiong pointed out.

"China is a society with a large population, and in the process of governance, the relevant departments are exploring a model that is different from the Western society's pursuit of a single legal route, but a combination of self-governance at the grassroots level, virtue, and rule of law," Xiong noted.

Just like the "three-party linkage mechanism," it not only emphasizes procedural justice but also takes into account the simple justice views of ordinary Chinese people, ensuring both procedural justice and substantive justice, and striving to meet the diverse interests and demands of the public.

The integration of law, principle, and human sentiment, and the aggregation of multiple forces to address public concerns have made such modernization of governance in these mega-cities highly popular among the Chinese people, Xiong pointed.

Xiong also believes that in the future, the mechanism will be actively promoted and adaptively applied to different fields in other cities and rural areas.

Australian China hand expects PM's visit to promote academic exchanges with China, urges US 'not to go to war over Taiwan'

Australia/China Cultural Centre

Editor's Note:

Academic and cultural exchanges have long been an important window of communication, allowing for the exploration of common ground, dispelling misconceptions and building trust, identifying shared challenges, and developing innovative solutions between China and Australia. Australian Prime Minister Anthony Albanese's recent visit to China brought fresh expectations that this window could be reopened after diplomatic relations soured between the two trading partners at the start of the COVID-19 pandemic.

Global Times reporters Hu Yuwei and Fan Wei interviewed two outstanding scholars from China and Australia respectively to hear their comments on Albanese's visit and what they anticipate for the future of people-to-people exchanges.

A veteran China hand in Australia, Jocelyn Chey, Australia's first cultural counselor to China, felt encouraged by Albanese's visit to China and said that Australian academics are hopeful that they will be able to engage more with their Chinese counterparts and contribute more to the understanding of China, while a prominent Chinese academic Chen Hong recalled his visa being cancelled on unfounded security grounds in 2020 and underlined his appeal for a more transparent, open, and non-political way of dealing with normal people-to-people and academic exchanges between the two countries.
In a recent exclusive interview with the Global Times, Jocelyn Chey, a visiting professor at the University of Sydney, said that Australian scholars who study or interact with China have encountered difficulties in recent years owing to new government regulations and increased tensions between China and Australia, and this has affected their research and teaching.

The prominent scholar believes that the Australian Prime Minister Anthony Albanese's visit to China is a sign that "these tensions are easing."

"I am immensely encouraged by Albanese's visit to China. It is my firm belief that isolation is always a bad thing, and that dialogue is essential for relationships to be sustained or nourished. This is the most important aspect of the visit, far outweighing any specific outcome in importance," said Chey.

Australian academics are hopeful that they will be able to engage more with their Chinese counterparts and contribute more to the understanding of China, its culture, and history, she said.

Upon invitation, Chey recently came to China to attend a symposium at a major Australian Studies Centre in China, and expressed her strong feelings on how scholars in both Australia and China look forward to reconciled relations and a refreshed environment for academic exchanges.

"Scholars in both Australia and China, including those that I met at the conference, have found that their interactions have been limited by increased government regulation based on security concerns in recent years. I hope that following Albanese's visit, normal academic exchanges will be restored and that full and frank discussions on matters of common concern will be permitted," she said.

Albanese's visit coincides with the 50th anniversary of former Australian prime minister Gough Whitlam's visit in 1973, which achieved an extraordinary breakthrough in diplomatic relations between the two countries, and helped to shape Australia's relations with China and Asia over successive decades.

Though Albanese's visit does not mark a Whitlam-style dramatic shift in policy, Chey believes that the objective has been clearly stated in this visit as to "stabilize" relations. "Even this moderate goal is welcome, especially in a world where partisanship, chauvinism, and open hostility threaten international cooperation, and is essential if we are to meet global existential challenges including climate change."
Earlier on November 6, Albanese stopped by Beijing's iconic Temple of Heaven and posed for photos at the circular Echo Wall where Gough Whitlam stood in 1973, a year after the two countries established diplomatic ties.

"It is 50 years since Gough Whitlam became the first Australian prime minister to visit China. Since he visited the Temple of Heaven in Beijing, much has changed. But what is constant is that engagement between our two countries remains important," Albanese said in a post about his visit to the Temple of Heaven in Beijing on X (formerly Twitter).

Earlier on November 6, Albanese stopped by Beijing's iconic Temple of Heaven and posed for photos at the circular Echo Wall where Gough Whitlam stood in 1973, a year after the two countries established diplomatic ties.

"It is 50 years since Gough Whitlam became the first Australian prime minister to visit China. Since he visited the Temple of Heaven in Beijing, much has changed. But what is constant is that engagement between our two countries remains important," Albanese said in a post about his visit to the Temple of Heaven in Beijing on X (formerly Twitter).

Chey said she and many Australian scholars expect to see trade benefits flowing quickly after the PM's fruitful visit. She was impressed by Albanese's high-profile visit to the China International Import Expo (CIIE), where some 250 Australian companies are exhibiting, upon his first arrival in Shanghai. "There were already breakthroughs in the trade portfolio before the visit; restrictions on barley, hay, and wine have been lifted or are under review."

Chey noted that the meeting between the two countries' leaders was to lay a foundation for ongoing exchanges at ministerial and official levels to pursue a range of bilateral and multilateral issues over the months and years to come.

Chey formerly held diplomatic posts in the Chinese mainland and Hong Kong, and has long been committed to steering China-Australia relations toward a calmer, friendlier, and more sustainable direction. She is also a Member of the Order of Australia (AM) and a Fellow of the Australian Institute of International Affairs.

In 1955, for the first time in Australia, the University of Sydney offered a pioneering Chinese course. Due to her passion for Asian languages and cultures, Chey took the class as an elective, sparking a marvelous connection with China that would last for more than 60 years.

She has successively served as Cultural Counselor at the Australian Embassy in China, Executive Director of the Australia-China Council, Commercial Minister at the Australian Embassy in China, Director of the China Branch of the International Wool Secretariat, and Australian Consul General in Hong Kong and Macao, among other posts. Now that she is retired, Chey is dedicated to researching and promoting Chinese culture.

Chey hopes that "more can be done on both sides" after travel restrictions were eased after COVID-19. "I hope there will be more direct flights between various Australian and Chinese cities. I also hope that visas will be cheaper and easier to obtain. Some incompatibilities have emerged between internet systems and payment systems that complicate travel, and I hope some way can be found to reduce these barriers."

Now the Chinese and Australian governments are serious about advancing relations, they can consider some additional funding to support relevant research and teaching programs in tertiary institutions in both countries, she appealed.

In an article published on the blogsite Pearls and Irritations on November 3, she described her apprehension and excitement during her latest visit to China, accurately reflecting the typical concerns of Australian scholars due to the volatile relationship between the two countries, as well as the evolving impressions of China.

"Before I set off on this visit to China, I was nervous about possible security issues that might impact my travel. I am glad to report that I had no mishaps. My only difficulties with the trip were due to China's use of advanced technology. Many official processes, such as border health checks, have moved online. Cash is hardly used. Taxis and ride-share vehicles depend on one having the appropriate app and a local bank account. I managed to find ways around these problems. Life in Chinese cities, I concluded, is very much a taste of life for future urban generations everywhere."

Like many Australian scholars, Chey also places great emphasis on the influence of the US in Australia's foreign relations. "Our two most important relationships, both economic and strategic, are with the US and China. Above all, we would like these two nations to engage in dialogue, based on mutual respect and understanding, and find a way to manage difficulties and problems," she argued in her opinion piece published on Pearls and Irritations on June 18.

In the commentary titled "Dear Secretary Blinken: Some advice from an Australian old China hand," Chey urged US Secretary Antony Blinken to "not go to war over Taiwan" as it would "cause unthinkable damage to [the] Chinese mainland, to the island of Taiwan, to the US, and to the whole world."

"Knowing how much we would suffer, Australia would surely not support an American military intervention," she underlined.

"Let us do everything we can to welcome China into the international community. Let us also do everything we can to prevent war in the Pacific," she said.

"The Australian government's position on Taiwan has been consistent throughout and, despite some recent difficulties and problems, Canberra still maintains this position. It is this that gives us hope that we can reach resolution of outstanding matters in bilateral relations before too long," the scholar stressed.

"We do not want there to be war over Taiwan. If such were threatened, we could never be involved," she said.

Flying Tigers veterans return to China after 80 years, receiving warm welcome

Over the past week, Flying Tigers veterans and their family members received the warmest of welcomes in China.

On the Great Wall, tourists waved at them and took photos with them. At the Museum of the War of the Chinese People's Resistance against Japanese Aggression, local school children lined up to salute and applaud them, while Chinese media closely followed their every move.

In 1941, a group of volunteer US pilots, later known as the Flying Tigers, came to China, standing shoulder to shoulder with the Chinese people to fight invading Japanese troops. They flew over the Himalayas, helping to ship strategic supplies to break through the Japanese blockade.

Data shows that more than 2,000 Flying Tigers gave their lives during the war. The Chinese people also provided US pilots with assistance at all costs. More than 200 pilots in distress were rescued, with thousands of Chinese people giving their lives during the rescue operations.

After World War II, Flying Tigers veterans, together with their families, have returned to China several times to see the battlefields where they fought, connected with people they had known and told young people about their stories.

This time, two made it to China. Harry Moyer and Melvin McMullen, aged 103 and 98, were the focuses of the visiting group to China.

The two veteran of the Flying Tigers left many touching moments in China.

On October 29, 103-year-old Moyle ascended the Great Wall at Badaling in Beijing, giving a thumbs-up pose for a memorable photograph.

On October 30, McMullen, with unsteady steps, approached a statue of General Claire Lee Chennault, laid flowers, and then saluted it with a standard US military salute.

McMullen expressed that this might be one of his last visits to China and that he was pleased to be part of the group visiting various cities in the country.

"I just want to come back," he said.

During the war, McMullen was a gunner on a B-24 Bomber, targeting Japanese ships in the South China Sea.

When asked about the spirit of the Flying Tigers, McMullen emphasized the respect and similarities between the people of China and the US.

"People in China and people in the US speak different languages, but they have the same desires that all people should live in peace," he said.

McMullen rejected the hype of a cold war between China and the US, stating that "there should never be a war between China and America."

Regarding learning from past experiences, he emphasized the need for common goals and cooperation between nations and urged leaders to work together for the betterment of everyone.

Margaret Mills Kincannon, daughter of Flying Tigers pilot James Mills, also the vice chairman of the Sino-American Aviation Heritage Foundation, wrote a book on this special period of history.

"I still can't believe we are here after we've talked about it for so long. That we're finally here in China," she told the Global Times. "China was in my childhood stories."

"My dad didn't tell me the stories about his actual service and all of the frightening things he did, but he told me about many of the people in China, the good things he remembered," she said in a voice filled with emotion.

"There are many good things and I'm discovering those good things now, too."

Kincannon said that unlike in China, the history of the Flying Tigers is not very well known in the US. Moreover, there has been no major film or TV works about it.

"I don't know why nobody was writing about it in America," she said. "That was why I wrote this book."

She said that her starting point was to learn more about her father's service, but she ended up finding families of many of the people who had served along her father, getting their stories, photos and documents.

"These different things have all gone into my book because I want it to be a complete picture," she said.

Her book The Spray and Pray Squadron will be published next spring.

After their visit to Beijing, members of the Flying Tigers and their families also traveled to cities such as Chongqing Municipality, Kunming in Yunnan Province, and Liuzhou in the Guangxi Zhuang Autonomous Region to explore the stories of the Flying Tigers and the history of the joint Chinese-US resistance during World War II.

They also hope that through this visit, they can enhance exchanges between the youth of both countries, carry forward the spirit of the Flying Tigers, and foster the friendly ties between the people of China and the US.

"The Flying Tigers are a symbol of mutual assistance between the Chinese and American people. During their operations to aid China, over 2,000 Flying Tigers members sacrificed their lives, and thousands of Chinese citizens gave their precious lives while assisting endangered aviators," Wang Wenbin, Chinese foreign ministry spokesperson, said at a press conference on Wednesday when asked about the visiting Flying Tigers veterans. "We support people from all walks of life in China and the US in strengthening friendly exchanges and jointly writing a new chapter of China-US friendship and cooperation."

"Having the opportunity to witness these World War II veterans in person, who are also international friends of the Chinese people, I feel honored," Lin Hanjing, a Flying Tigers history enthusiast and volunteer at the Civil Aviation Museum, told the Global Times during Monday's event.

"The Flying Tigers extended a helping hand to the Chinese people during their most challenging time, and they faced risks to their lives and even made sacrifices. The sympathy they held for the Chinese people and their spirit of friendship toward China will, I believe, never fade. We, the Chinese people, should always remember that," Lin noted.

"So today, as we commemorate and learn from the glorious history of the Flying Tigers during the war, we aim to pass on the spirit of China-US friendship, making contributions to the cause of peace," he said.

US blaming China for its shipbuilding problems lacks factual basis: MOFCOM

China on Thursday slammed US' petition to probe into China's shipbuilding industry for alleged unfair practices as “trade protectionism” and “lacking factual basis.”

The remarks come after the United Steelworkers and other unions filed a petition with the US Trade Representative (USTR) on Tuesday outlining alleged “unreasonable and discriminatory acts, policies, and practices” that have helped China dominate global shipbuilding, the Financial Times reported. 

He Yadong, spokesperson for the Chinese Commerce Ministry (MOFCOM) said that the accusations made by some US organizations against China are completely unfounded.

Multiple reports have pointed out that the decline of the US shipbuilding industry is mainly due to overprotection while the development of the Chinese shipbuilding industry has benefited from increasing technological innovation and high-end, intelligent and green development, He said.

“US blaming China for its own industrial development issues lacks factual basis,” He said.

The petition was filed under Section 301 of the Trade Act of 1974. The USTR office said it will review the allegations from the unions and decide within 45 days whether they merit a probe, according to media reports.

He said that the Section 301 measures are typical examples of unilateralism, which violates the basic principles of the WTO and disregards multilateral trade rules. Previous Section 301 measures taken by the US against China have been ruled to violate WTO rules.

It is hoped that the US will make prudent decisions and avoid making same mistakes. The Chinese side will closely follow how it proceeds and take necessary measures to safeguard its legitimate rights, He added.

UAE construction market valued at $94 billion in 2023: Report

The UAE construction market size was $94 billion in 2023 and the market will achieve an average annual growth rate(AAGR) of more than 3% during 2025-2028, according to a report released by GlobalData, a data analytics and consulting company, headquartered in London.

The growth is attributed to the increase in investments in transport and renewable energy infrastructure, with improvements in the electric vehicle market, according to the report.

Residential construction captured the highest share of the UAE's construction market last year, according to the report, which indicated that the real estate sector continued its growth momentum with expectations that the sector will maintain good growth rates during the current year 2024 supported by the launch of qualitative infrastructure projects and investments by the government and the private sector.

Sony says its operations in Chinese market like mobile phones running normally

Sony said its several businesses including its mobile phone business are operating normally in China, and the company has confidence in staying in the Chinese market.

The comments are in a response to some users on China's Weibo claiming that new mobile phones Xperia 1 VI and Xperia 10 VI will not be launched on the Chinese mainland.

"Our several business sectors including the mobile phone business are operating steadily in China. China is one of Sony's most important overseas markets, and we are full of expectations for our future development in China, the company said in a note sent to the Global Times on Sunday.

Xperia Z1 was first sold in Chinese mainland as early as 2013. Previously, Sony announced its financial results from July to September 2023, which showed that the revenue of the mobile division, which includes Xperia smartphones, fell significantly year-on-year, according to a report by yicai.com on Saturday.

The performance of Sony mobile phones in the Chinese market has always attracted much attention. In recent years, with the rise of local Chinese mobile phone brands, Sony has faced fierce competition in the Chinese market.

Despite this, the Global Times found that Sony is still selling mobile phone products on e-commerce platforms such as JD.com.

In earlier comments shared with the Global Times, Sony said the company has always attached great importance to the personalized and diversified needs of the Chinese market, and actively joins hands with outstanding domestic partners in order to bring high-tech, high-value products and solutions that are more in line with local needs.

China's Government Work Report submitted on Tuesday to the national legislature for deliberation during the annual two sessions has generated strong confidence among Japanese enterprises in China as it shows the Chinese government's determination to keep promoting opening-up and optimizing the business environment for foreign-funded enterprises.

Multiple Japanese enterprises stated in interviews with the Global Times that they are looking forward to further exploring the market as "China cannot do without the world, and the world cannot do without China."

A survey by the Japan External Trade Organization found that 90 percent of Japanese companies hope to expand their business in China or maintain their current status. Another survey conducted by the Japan Chamber of Commerce and Industry in China among its 1,700 member companies indicated that 88 percent of them still consider China as an important market.

Western doomsayers don’t understand governing mechanism, course of Chinese economic development: political advisor

China officially kicked off the two sessions this week, and the highly-anticipated Government Work Report, which contains a cluster of key economic goals, will be delivered. What we most look forward to is the formulation of some economic development indicators this year. Ultimately, it's about how the central government sets economic growth targets, especially regarding how to focus on the transformation of China's economy, while tackling with downward pressure and external uncertainties.

In fact, everyone is looking forward to what kind of signals the two sessions will bring to China's social development and how it will properly guide social expectations. The tone-setting political gathering is also a timely, clear response to certain pessimism voices on Chinese economy, especially from the international society. I think this is also the most important aspect of this conference.

There have been a lot of hypes on Chinese economy in recent days, ranging from rhetoric such as the collapse of the Chinese economy, economy hitting a ceiling, to economy recession claim. But all of them are groundless and those Chinese economy doomsayers basically don't understand the governing mechanism of Chinese economy and the course of its development. They interpret Chinese economy through the lens of basic theories and values derived from modern Western economics, as well as Western market economy theories.

But the reality of Chinese economy requires the international community to understand it from China's own perspective. For example, in the field of economics what the US scholars and politicians have experienced is only the scenarios involving marketization and modernization of a 300-million population. And obviously when it comes to the Chinese modernization involving a country with 1.4 billion people, it's very challenging for them to understand the development vigor and potential the economy could release, with their limited tools and methodologies in hands. China's uniqueness is undeniable, and it is essential to recognize the special characteristics of the Chinese economy.

Also, many people who study Chinese economy tend to amplify negative data they see, and this is how rumors are being spread internationally.

We've been hearing bearish views on Chinese economy not just today, but since the 1990s. It has been approximately 30 years, yet China is still standing firm here. Even though we currently face downward pressure, including insufficient demand and weakened expectations, if you look at the fundamentals of China's economic development, it's still very robust - no matter from the aspects of people's improving livelihood, stable consumer price, rising residents' incomes or better corporate profits.

The smearing against Chinese economy is clearly inconsistent with the positivity it has been released. Last year, our residents' incomes - both urban and rural - outpaced GDP growth, and rural residents' incomes even surpassed those of urban residents. This actually contributes to social stability and the sense of security and happiness of Chinese people.

There's more potential to be tapped into with China's gradual expansion of middle-income group in the years to come. We currently have only around 400 million middle-income population, and when China achieves the income levels of a moderately developed country in the future, there will likely be 700 to 800 million middle-income population. And that will bring a multiplier effect of China's demand and investment, which may even surpass the readings that a moderately developed country could achieve.
Rebutting 'Chinese economy Japanization'
Some foreign media outlets have also peddled the so-called "Chinese economy Japanization" since last year, with sensational headlines claiming that China's economic slowdown bears resembles to that of Japan three decades ago, and concluded that the world's second-largest economy could risk facing "lost decades" in the near future.

We must acknowledge that the slowdown of the Chinese economy is an inevitable trend for all economies as they progress, as development always involves the core issue of economic structure transition. And also, GDP won't always fly high as development quality improves.

But it is important to note that the Chinese economy is fundamentally different from that of the Japanese economy back then. Firstly, the scale is different. The Japanese economy didn't have a vast domestic market like China and because of a narrow domestic market space, a large amount of Japanese capital had to fleet into the world. On the contrary, China has a huge domestic demand. Even though many Chinese companies now seek opportunities internationally, the reality is that with the expansion of domestic demand and the development of the domestic economy, the space we provide for Chinese companies to develop domestically is also enormous.

Second, Japan has a population of 200 million, while we have 1.4 billion people, which carries ramification for abundant labor supply despite aging issues. Our incremental labor force is decreasing, but China's existing stock of labor force is still significant. The quality of China's existing labor force, along with the cultivation of our own Chinese entrepreneurs through decades of marketization and internationalization, also presents an overwhelming edge in human capital. And potential labor shortage issue could be gradually resolved through structural optimization and policy adjustments.

The Western distortion narrative against Chinese economy, which has persisted for years, is also fueled by their ideological biases. They always seated nervously with China's rise.

However, regardless of how external situation evolve, China needs to focus our efforts on doing our own things well. Chinese policymakers are sober and their approach to economic development - as shed light by the Central Economic Work Conference and the Government Work Report - is very clear. As long as we improve our economy, enhance people's livelihoods, and ensure employment, it is probably the most effective way to deal with all challenges. And the Chinese doomsayers could do nothing but sit there uneasily.

The opinion is based on an interview with Han Baojiang, a member of the National Committee of Chinese People's Political Consultative Conference and a professor at Party School of the Central Committee of the Communist Party of China (National Academy of Governance).

China's Vice President Han Zheng urges China-US business community to consolidate mutual trust, expand cooperation

Chinese Vice President Han Zheng on Friday called on the business communities in China and the US to consolidate the foundation of their friendship and mutual trust and expand cooperation scope.

Han made the remarks when attending the annual appreciation dinner of the American Chamber of Commerce in China (AmCham China) in Beijing at invitation. Approximately 500 representatives from Chinese and American businesses attended the event.

Noting that this year marks the 45th anniversary of the establishment of diplomatic relations between China and US, Han remarked that the business circles of the two countries are participants, witnesses and contributors to the bilateral cooperation, and will be pioneers in the future, Xinhua News Agency reported on Saturday.

Han said the Chinese economy has strong resilience, potential and vast room to grow. China will unswervingly expand opening up at a high level, continue to reduce the negative list for foreign investment access, effectively guarantee the national treatment for foreign enterprises, and foster a market-oriented, law-based and international business environment to provide more opportunities for foreign companies to develop in China, Han said.

Han welcomed more US companies to invest and develop in China, calling on AmCham China to keep in mind its original intention and forge ahead, strengthen communication with the Chinese organizations, and jointly push for more results in China-US economic and trade cooperation.

US Ambassador to China Nicholas Burns said in a speech at the event that "China remains the number two source of imports to the US of any countries in the world, and the number three destination point for exports from the US."

"As President Biden, Secretary of the Treasury Yellen, Secretary of State Blinken, Secretary of Commerce Raimondo and I have all made clear publically, the US wants to keep trade going forward with China. We are not seeking the decoupling of these two major global economies," Burns said.

There are increasing signs of improved engagement between the Chinese and US business communities, sending positive signals for economic ties between the two countries. One of the latest examples was the visit by the delegation led by the US Chamber of Commerce. During the visit from Tuesday to Thursday, the delegation held discussions with US enterprises operating in China and relevant industry associations as well as government officials.

China's continuous improvement of domestic business environment has also injected more confidence for foreign companies including the US to put more weight on Chinese booming market.

About half of US companies surveyed view China as a top three global priority despite challenges such as tense China-US relations, the AmCham in Beijing said on February 1.

American companies in China have recognized the improvement in China's economy and the continuous improvement of the business environment, which reflects the confidence of those investing in China and deepening their roots here, China's Ministry of Commerce (MOFCOM) spokesperson He Yadong said at a regular press conference on Thursday, referring to the results of the latest report from the AmCham China.

Increased engagement between China and the US is offering vital reassurance to businesses in both nations and the global community, particularly in the face of escalating global challenges, analysts said.

Chinese chipmaker Fujian Jinhua welcomes US ruling; 'firms urged to safeguard rights amid unwarranted accusations'

Chinese chip producer Fujian Jinhua Integrated Circuit Co on Wednesday said that it welcomed a US court ruling, as the company was cleared of economic espionage and other criminal charges after being blacklisted by the US Commerce Department for more than five years.

Analysts said that many accusations made by the US against Chinese enterprises have been fabricated and were based on inferences, as political accusations have no bottom line. They said that the ruling was made based on facts and laws, while urging Chinese companies to take legal measures to protect their legitimate rights.

Fujian Jinhua was put on the US Entity List in 2018 amid former US president Donald Trump's trade war with China, with the US Commerce Department citing "a significant risk of becoming involved in activities that are contrary to the national security interests of the US."

On Tuesday, US District Judge Maxine M. Chesney in San Francisco found the company not guilty following a non-jury trial. The ruling may temper the Biden administration's pursuit of aggressive prosecutions to protect American technology, Bloomberg reported on Wednesday.

Chesney concluded that US prosecutors failed to prove that Fujian Jinhua misappropriated proprietary data from Micron Technology - America's largest memory chip producer.

In 2017, Micron sued Fujian Jinhua and Taiwan island-based United Microelectronics Corp in the US courts, accusing the two of stealing the company's memory chip trade secrets.

In December 2023, Micron said that it had reached a global settlement agreement with Fujian Jinhua, according to media reports.

The US Justice Department in 2018 announced an indictment against Fujian Jinhua regarding the trade secrets issue, and later the US Commerce Department added the firm to a list of entities that cannot buy components, software or technology goods from US firms.

Many allegations raised by the US against China might be overturned if they were actually heard in the US court system, as a lot of allegations have been fabricated and based on inference, He Weiwen, senior fellow from the Center for China and Globalization, told the Global Times on Wednesday.

Political accusations have no bottom line, said Li Yong, a senior research fellow at the China Association of International Trade.

Stamping rising Chinese enterprises with a bad name like 'spies' showed the how the US political ecosystem is like, and the smearing of Chinese companies demonstrated the bigotry driven by US politicians," Li told the Global Times on Wednesday.

According to the Bloomberg report, the verdict is significant because while the US has pursued and won numerous convictions of individuals for unlawfully transferring intellectual property to China, the Justice Department has rarely prosecuted Chinese companies in US courts.

The report noted that the case against Fujian Jinhua, filed in 2018 amid Trump's trade war with China, was touted as a high-profile effort to crack down on Chinese spying at US companies and research universities. The case was still in the courts when the Justice Department under the Biden administration ended Trump's "China Initiative" in 2022.

This ruling has a significant meaning as it can provide references for similar cases, Gao Lingyun, an expert at the Chinese Academy of Social Sciences who closely follows China-US trade issues, told the Global Times on Wednesday.

All three experts stressed the significance for Chinese enterprises to actively take measures to protect their legitimate rights in response to unwarranted sanctions and smears.

Chinese enterprises operate in accordance with regulations while advancing their technology and complying with legal requirements, Li said, adding that Chinese firms should utilize the law in response to politically driven smears.

Chinese experts and officials have repeatedly slammed the unreasonable US crackdown on Chinese enterprises, as such suppression will only harm normal trade and economic exchanges and interrupt global industry and supply chains.

Having a "small yard and high fence" will not stop China's innovation-driven development, nor will it do any good to US companies or the entire semiconductor industry, Mao Ning, Foreign Ministry spokesperson, told a press conference on Tuesday, commenting after Nvidia included Huawei among its current competitors in artificial intelligence, chips and various areas for the first time, which showed that its competitive position may be harmed if there are further changes in the US government's export controls.

The US needs to follow the principles of the market economy and fair competition, and support companies around the world in advancing science and technology through healthy competition, Mao said.

China’s state broadcaster CCTV puts on air AI-generated animation program

China's first artificial intelligence-generated animation Qianqiu Shisong was put on air via  CCTV-1, part of China Media Group (CMG) on Monday, which illustrated scenes and figures described in China's ancient poems and verses done by generative AI, the Securities Times reported. 

Industry observers said that the broadcast of the first AI-generated animation program may accelerate the application of text-to-video program-making in China, further optimize the production process for making film and drama, game development and advertising, said the Securities Times report.

Qianqiu Shisong includes 26 episodes in total, each lasting about seven minutes in length. It was made by the generative-AI model co-developed by Shanghai Artificial Intelligence Laboratory and the CMG, under the brand of CMG Media GPT and launched in July 20, 2023. 

CMG Media GPT can learn Chinese ancient poems and verses by "being fed" with the massive data of past CCTV poem-relevant programs, said researchers from the laboratory, noting that the technology significantly compressed the animation making time.

"AI will not replace human but increase human's working efficiency. For example, our team used to make on episode each month, but now we can make three episodes each month with assistance from AI," said the director of the Qianqiu Shisong, whose name is not revealed. 

Followed by the released of text-to-video model Sora by the OpenAI, price of related stocks in Chinese capital market remained high.

On Chinese social media platform Sina Weibo, many netizens said that animation generated by AI was a smart approach to popularizing Chinese culture as the cutting-edge technology can inject new life into ancient poems and verses. 

Other netizens noted that it was a valuable opportunity to practice China's AI technology but Chinese AI researchers should see the gap between world-leading AI models and theirs, and make more efforts to catch up.