Japanese and US defense chiefs and top diplomats met in Tokyo on Sunday for talks to boost military cooperation, including upgrading US forces command and reaffirming the US' commitment to "extended deterrence." The move doubles down on the US' intention of using Japan as an outpost in the Asia-Pacific region to boost its nuclear deterrence to contain countries such as China and elevate the role of the Japan Self-Defense Forces in the US-Japan military alliance. 

However, this will put Tokyo in the front line of a counterattack from other countries, including a nuclear conflict, said Chinese observers. Moreover, the enhanced US-Japan alliance will likely provoke a new round of arms race in tactical nuclear weapons in the region, experts said. 

US Secretary of State Antony Blinken arrived in Japan on Sunday as part of an Asia-Pacific tour. Blinken and US Defense Secretary Lloyd Austin held 2+2 talks with Japanese Foreign Minister Yoko Kamikawa and Defense Minister Minoru Kihara, according to a joint statement released by the Pentagon.

The ministers stressed the importance of continuing to enhance US extended deterrence, the joint statement said.

This includes atomic weapons, marking a shift from Japan's earlier reluctance to openly discuss the sensitive issue in the world's only country to have suffered nuclear attacks, AP reported.

Ever since the end of WWII, Japan has been under the US nuclear protection umbrella, yet reaffirming this "extended deterrence" this time signals Washington's intention of using Japan as an outpost to strengthen its nuclear deterrence in Northeast Asia, Wei Dongxu, a Beijing-based military expert and media commentator, told the Global Times on Sunday. 

Wei said such a concerning move not only completely overturns Japan's war-renouncing constitution, but all policies related to Japan's exclusively defense-oriented strategy will be completely breached. 

"If the US were to use Japan's bases to conduct tactical nuclear strikes, when other countries retaliate, they are likely to retaliate with nuclear weapons as well. Targets would likely include US military bases in Japan, effectively dragging Japan into the risk of nuclear conflict," Wei said.

The joint statement also announced that the US intends to reconstitute US Forces Japan as a joint force headquarters reporting to the Commander of US Indo-Pacific Command.

This move further ties Japan to the war chariot of the US, where they must advance and retreat together, Lü Chao, a Korean Peninsula expert at the Liaoning Academy of Social Sciences, told the Global Times. He said criticizing China as threat just allows US to intervene with excuses like "extended deterrence" during the so-called crisis in Taiwan Straits and South China Sea and provide a pretext for extending nuclear threats to the entire Asia-Pacific region, which is dangerous. 

Xin Qiang, director of the Taiwan Studies Center at Fudan University, said the upgrading of the US command showcases a new level of the US-Japan military alliance. Once the command is upgraded, it will enhance the role and status of the Japan Self-Defense Forces within the alliance, Xin said.

He said this will further accelerate Japan's military dvelopment and the exercise of collective self-defense rights to engage in a potential warfare in the future.

Austin and Kihara also met their South Korean counterpart, Shin Won-sik, for talks in Tokyo on Sunday where they signed an agreement to "institutionalize" trilateral cooperation via efforts like real-time sharing of North Korean missile warning data and joint military exercises, media reported.

Later on Monday Blinken and Kamikawa will meet Indian Foreign Minister S. Jaishankar and Australia's Penny Wong, their counterparts in the Quad, an alliance seen as a bulwark against Beijing.

Chinese experts said that Blinken's Asia tour clearly aims at challenging China. The US has been making efforts to form a NATO-like alliance in Asia, Xin said. 

Editor's Note:

The recently released communique from the Third Plenary Session of the 20th Communist Party of China (CPC) Central Committee laid out an unequivocal commitment to comprehensively deepening reform to advance Chinese modernization. As China prepares to implement further reforms aimed at promoting high-quality economic development, the global community is scrutinizing every aspect of the Chinese economy. Zhong Ninghua, the head of the Department of Economics and Finance at Tongji University, provides insights on China's export growth in the face of global challenges.

Despite facing a number of external uncertainties, China's exports continue to grow, attracting much attention. Total exports have steadily expanded from 17.24 trillion yuan ($2.5 trillion) in 2019 to hit 23.77 trillion yuan in 2023. 

Meanwhile, the past several years have also witnessed a noticeable trend of diversification in both export destinations and shipped products. From January to May 2024, China exported 1.39 trillion yuan of goods to the US, which grew by 3.6 percent year-on-year. 

Due to sticky inflation in the US, affordable Chinese products have helped American households lower living costs and enhance their purchasing power, particularly benefiting the middle- and low-income groups there. These benefits have driven the overall rise in Chinese exports to the US.

From January to May 2024, China's exports to ASEAN countries totaled 1.67 trillion yuan, up 13.5 percent year-on-year, with notable increases to Laos, Vietnam, Cambodia, and Indonesia. And, China's exports to Central Asian nations and Arab countries have also witnessed marked growth.

Helped by the diversification bid in export destinations, the range of China's export shipments has broadened. Years ago, clothes, furniture, and home appliances dominated Chinese exports. In 2023, electric vehicles, lithium-ion batteries, and solar panels became the country's fastest-growing export items, totaling 1.06 trillion yuan in value, an increase of 29.9 percent year-on-year. 

The rising exports of Chinese new-energy products will greatly support the global green transition.

Private and foreign-invested enterprises have played a premium role in China's exports. In 2023, the number of foreign trade dealers exceeded 600,000 for the first time, including 556,000 private enterprises. The establishment of 21,764 new foreign-invested enterprises in the first five months of this year marked a 17.4 percent year-on-year increase. 

As China adjusts its export structure, many foreign firms are reshaping their investment strategies in the country. Production lines are shifting from mobile phones, computers, and home appliances to high-tech products, including new digital displays and high-end electric batteries. Notably, investments in scientific research and technological development by foreign firms continue to grow. 

In the first five months this year, China's manufacturing sector attracted 117.1 billion yuan of foreign investment, with high-end manufacturing drawing 50.41 billion yuan. The progress echoes with China's robust industrial and supply chains, which cover a wide variety of emerging fields, typically the new-energy vehicles.

Against a complex global geopolitical background, Chinese companies are expanding investments across many regions in order to access larger international markets. In 2022, China's total outbound direct investment reached 985.37 billion yuan. In 2023, the investment exceeded 1 trillion yuan, marking a 5.7 percent year-on-year increase, with a focus on investing in markets like Southeast Asia, Africa, and Latin America. 

The rising Chinese investments have helped drive local economic development and created many job opportunities.

Now, some Chinese companies are transforming into multinational corporations, deeply participating in the global supply chain, and integrating global resources such as raw materials and components. By bringing Chinese technology and innovations to other countries, Chinese companies are helping upgrade local industries.

Additionally, global warming is accelerating. Addressing the grave climate challenge calls for establishing an integrated trade system in the world, for such a system facilitates economic integration, benefits the disadvantaged populations, and helps promote green, low-carbon development.

On Tuesday, Beijing became the focal point of global diplomacy. Representatives of 14 Palestinian factions signed the Beijing Declaration on Ending Division and Strengthening Palestinian National Unity, historically announcing the end of division and the strengthening of Palestinian unity. On the same day, Ukrainian Foreign Minister Dmytro Kuleba began his visit to China, marking the first visit by a Ukrainian foreign minister since the outbreak of the Russia-Ukraine conflict. Parties from two of the world's most significant conflict regions simultaneously seek political solutions in China, forming a "diplomatic resonance." One netizen commented, "The world is in tatters, and China is stitching it back together." While these words may not be entirely accurate, they vividly reflect China's efforts to fulfill the Global Security Initiative and address the deficit in global peace.

The Israel-Palestine conflict and internal Palestinian divisions involve extremely complex backgrounds and interests, making the reconciliation process long and tortuous. The gathering of 14 Palestinian factions in Beijing for reconciliation talks has been met with cautious optimism by mainstream international media. The announcement of the Beijing Declaration immediately shocked international public opinion. Mustafa Barghouti, secretary-general of the Palestinian National Initiative, stated that the Beijing Declaration goes "much further" than any other reached in recent years. The scene of representatives from 14 factions signing the declaration marks an important historical moment in the Palestinian liberation movement and brings valuable hope to the long-suffering Palestinian people.

The Beijing Declaration is a crucial step toward resolving the Palestinian issue and achieving peace and stability in the Middle East. It is also the first time that an internal Palestinian reconciliation document has been organized by a country outside the Arab world. When asked why this conflict can only be resolved in Beijing rather than elsewhere in the world, Mustafa Barghouti said it is because China is "very decent and honest." The sincere efforts made by China to support the rights of the Palestinian people, end division and unify the Palestinian stance have been highly praised by all factions in the Beijing Declaration, which is well-deserved.

The Beijing Declaration also holds transcendent significance. From achieving historical reconciliation last year between Iran and Saudi Arabia to today's Beijing Declaration, the world has witnessed a broader range of possibilities and gained immense confidence. The new security path advocated by China - dialogue rather than confrontation, partnership instead of alliance, and win-win cooperation instead of zero-sum games - has proven to be viable. A world characterized by lasting peace, universal security, common prosperity, openness, inclusiveness, and ecological beauty is attainable. Unraveling knots does not require the sword. Beyond isolation, pressure, sanctions, confrontation, interference, aggression, and mutual destruction, humanity has another path: resolving complex and difficult issues through dialogue and cooperation. Humanity does not have to repeat the mistakes of the past and is not bound to the historical cycles of war and peace, prosperity and decline, order and chaos. The Global Security Initiative advocated by China is a beacon of hope.

The progress in Palestinian internal reconciliation also provides insights into the ultimate resolution of another conflict. Besides discussing China-Ukraine bilateral relations, a key focus of Kuleba's visit to China is seeking ways to end the Ukrainian crisis in discussions with China. Before his trip, Kuleba recorded a video for Chinese netizens, expressing his hope for "real and just peace" and for Ukraine to "restore stable development and prosperity, and security for the people." Promoting a peaceful resolution to the Ukrainian crisis is a consistent stance of China, which has also made significant efforts toward this goal. The door to peace remains open, and for the international community, it is crucial to work toward encouraging peace talks rather than the opposite.

Peace cannot be achieved overnight, and China is aware of the difficulties along the way. However, as long as it benefits the world and its people, China feels an unshirkable responsibility. Currently, the parties involved in the world's two major regional conflicts are in China, both seeking goals related to "peace." This is not coincidental. China's impartial stance, free from selfish motives or interests, has garnered increasing trust from the international community. As a value system and methodology that China offers for global peace, the Global Security Initiative transcends geopolitical and ideological differences, and is the greatest common denominator for all parties seeking peace and reconciliation. Each successful practice of the GSI attracts more like-minded partners and continually validates the ancient Chinese saying: "Virtue is not left to stand alone, and he who practices it will have neighbors."

China has shown major bright spots of continued improvement across industrial production and exports, tied with robust consumer spending throughout the second quarter of this year, reflecting the resilience of the Chinese economy amid challenges, a quarterly report released by the China Finance 40 Forum, a Chinese think tank, said.

The report warned that the current economy still faces headwinds from insufficient domestic demand, adding that more powerful policies need to be introduced.

Value-added high-tech industries increased by 8.7 percent in the first half of the year, higher than the growth rate in the same period last year and the whole year last year. Divided into major categories, production in sectors such as mining and manufacturing have all improved with cumulative added value increasing by 2.4 percent and 6.5 percent, respectively.

From a consumption perspective, consumer spending rose to 65.6 percent in the second quarter, an increase of 0.8 percentage points from the second quarter of 2023, reflecting a more vibrant retail economy, the report noted.  

From the perspective of foreign trade, in the first half of the year, both China's imports and exports and trade surplus hit a record high, as exports continued to improve.

The report came after a half-year economic data was released, as China's GDP expanded 5 percent to reach 61.68 trillion yuan ($8.49 trillion) in the first half, demonstrating the resilience and innate strength of the world's second-largest economy.

Among the figures released, retail sales of consumer goods in the first six months were up 3.7 percent, and fixed-asset investment edged up by 3.9 percent. Investment in high-tech industries surged by an impressive 10.6 percent year-on-year.

China's economy has remained stable despite a complex global and domestic environment, achieving parallel growth in quantity and in quality. The figures paint an optimistic portrait of the country's economic performance, according to the National Bureau of Statistics.

The current macroeconomic situation is still facing insufficient domestic demand, Zhang Bin, a non-resident senior fellow at the China Finance 40 Forum and deputy director of the Institute of World Economics and Politics of Chinese Academy of Social Sciences, told the Global Times. 

In addressing how to kickstart demand, Zhang suggested that a more proactive broad fiscal policy should be formulated, especially efforts should be made to achieve the annual budget expenditure growth target and boost the financial resources available to local governments.

The report warned that the economy has not yet emerged from a state of low inflation, and the squeezing effect of local government debt and other factors on local government revenue cannot be alleviated as soon as possible, resulting in a weak recovery of the consumption.

Cash flow of real estate companies has not significantly improved, and real estate debt pressure may endanger future financial stability, the report noted. 

China will employ a raft of policies to expand and strengthen its big data industry, in an effort to unleash and enhance social vitality and boost the digital economy, the National Data Administration (NDA), said on Monday.

Improving institutional systems and regulations, fostering a unified national big data market and promoting the market-oriented allocation of data resources are at the top of the agenda, according to Liu Liehong, head of the NDA.

"We should better leverage the market mechanism to cultivate and strengthen big data enterprises, improve the ecosystem of data circulation and transaction services, and create a competitive, orderly and vibrant big data industry," Liu said.

Experts said that the move is part of China's efforts to prioritize institutional reforms, aiming to unleash the potential of the country's vast big data resources and transform them into a new competitive advantage.

Fostering and enhancing the big data industry ecosystem is crucial for driving the growth of the digital economy and reshaping China's economy for innovation, they said.

China attaches great importance to the cultivation of sectors related to big data, according to Zhang Wang, an NDA official.

The administration is working to promote the industry's development by creating a fairer and more dynamic market environment, and supporting these enterprises to accelerate their development in resource aggregation, technological innovation, product services, circulation and trading, and infrastructure.

The NDA is coordinating the construction of a digital China, digital economy and digital society to better serve the country's high-quality development, Liu added.

Liu also announced that the China International Big Data Industry Expo 2024 will be held in Guiyang, the capital of Southwest China's Guizhou Province, from August 28 to 30.

During the expo in Guiyang, the NDA will release reports on its achievements since its establishment in a series of press conferences, Liu said.

According to experts, the big data industry is the cornerstone and backbone of the digital economy. It is a rapidly growing sector that specializes in managing and utilizing large volumes of data for various purposes. It plays a crucial role in harnessing the power of data to drive innovation, improve efficiency, and drive economic and social progress, Pan Helin, a Beijing-based veteran economist, told the Global Times on Monday.

China's digital economy has grown rapidly in recent years, reaching 50.2 trillion yuan ($6.9 trillion) as of the end of 2022, equivalent to 41.5 percent of the country's GDP, the Xinhua News Agency reported.

The digital economy continues to grow in terms of volume. In 2023, China's data output reached 32.85 zettabytes, up 22.44 percent year-on-year, while the added value of core digital economy industries was equivalent to 10 percent of GDP.

Since its launch in October 2023, the NDA has promoted reforms related to the market-oriented allocation of data elements. For example, in November 2023 the NDA said it would explore the implementation of a "Data Element X" initiative, focusing on unleashing the multiplier effects of data across a range of scenarios and facilitating the transformation of China's advantage in basic data resources into new economic strengths.

As China stands at a pivotal juncture in its economic transformation, digital economy and sharing economy platforms have emerged as key drivers in the overall economic landscape. Ge Jun, co-chair of the Board of TOJOY Shared Holding Group Co, which is a big-data driven entrepreneur resource sharing platform, has outlined a strategic vision for leveraging digital advancements to fuel economic growth.

In a recent interview with the Global Times, Ge noted that many enterprises have already embarked on a path of rapid development, focusing on digital economy as a promising major project. These enterprises are committed to building a digital industry cluster capable of competing on a global scale.

The World Economic Forum has projected that as the global economy rapidly digitalizes, an estimated 70 percent of new value created over the coming decade will be based on digitally-enabled platform business models. By 2025, the added value of the core industries of the digital economy will account for 10 percent of China's GDP, the Xinhua News Agency reported.

Ge also highlighted the role of TOJOY in this transformative journey. He stated that the platform will collaborate with like-minded enterprises to drive the deep integration of traditional and innovative enterprises through a large sharing economy model.

"This will help build a new ecosystem where the digital economy and the real economy are seamlessly connected," he added.

TOJOY is a company experienced in enterprise acceleration and has a tremendous industrial resource pool. The core business of the platform is to provide high-quality innovative enterprises with acceleration services and help realize their business transformation. Up to now, the platform has gathered more than 4.7 million SME owners, of which over 100 are being accelerated.

"In China, about 10,000 innovative enterprises need various resources to support their development every year, and 10 million traditional SME owners to upgrade their businesses. That requires empowerment from shared platforms, which is our responsibility," Ge said.

Opening up to a global market is always a tricky problem. This covers multiple aspects, from commodity trade to foreign investment to financial market reforms and governance. Combining our research paper with future projections, I may conclude: in the long run, there are no visible signs of production overcapacity in the new-energy sector, as demand will far outweigh supply. With the Belt and Road Initiative (BRI), China can help other developing countries and transform their lives through our own experience in industrialization.

China's new energy industry is in the midst of an expansion cycle, and growing rapidly. The most important reason for this expansion  is due to global long-term demand. For example, global annual car sales are equal to around 90 million units, with currently around 20 million new-energy vehicles in use today. Based on mutual agreements by most of the countries, by 2040, we will have stopped producing all gasoline vehicles and then replace them by new-energy vehicles. If you strictly adhere to this calculation, the annual growth rate of new-energy vehicles, which amounts to the total demand, is very large. We can conclude, therefore, that the demand gap is, and will remain, enormous.

The key is to examine these complex issues over a longer time frame. If we look at the long-term problems, I feel that within China's new energy industry, there is no issue over long-term overcapacity.

Let's talk about long-term production overcapacity issues. My main view is that every industry has a life cycle. The expansion reaches its peak and then it declines. The life cycle for different countries is not the same. Due to the international specialization, for example, the US manufacturing industry began to decline in the 1990s. We estimate that the global new energy investment is short of $6 trillion per year until 2030. So, in this sense, in the long run, our global demand is greater than global production capacity, including China's production capacity. So, I can say that the overcapacity in new energy sector does not exist in the long run. Of course, the product life cycle is different in different countries.

Let me share a quick data review here to evaluate from a demand-supply perspective: In 2023, global sales of new-energy vehicles reached 14.65 million units, an increase of about 42 fold from 2014. According to a study by the International Energy Agency (IEA), global sales of new-energy vehicles will need to reach 45 million in 2030, more than triple the 2023 figure. It is expected that by 2030, the global demand for power batteries will reach 3500GWh, which is quadruple the global shipments in 2023, both far exceeding the current global supply capacities. This answers quantitatively the question of production overcapacity in new energy sector.

Now, you may ask: are there no overcapacity issues? Let me give you an example first: In the 1990s, Chinese textile industry has a capacity adjustment period, which was to dismantle low-quality and outdated textile pressing techniques. The old textile mills were destroyed because we felt there was overcapacity using outdated equipment. 

This was a misallocated overcapacity back in time and then at that time it was very clear that we called it "outdated overcapacity". Because of the abolition of global textile quotas, China's demand for textiles has increased greatly which immediately led to more than 12 million advanced textile factories, which produced high-quality clothing. In fact, the new capacity has replaced the old capacity which echoes our large-scale "trade-in" program that was recently implemented.

Every time we see this "production overcapacity" argument, we clearly emphasize that it is possible, but many global media outlets seem to have overlooked the fact that the overcapacity we have is "outdated overcapacity", meaning that there is no overcapacity when it comes to innovation and use of new technology. They get confused over these two issues: first, there is no long-term overcapacity and second, there is the "overcapacity of polluting" in the outdated technology. From around 10 years ago, the cement and steel industry, which included elements of the fossil fuel industry, created highly polluting sectors. It is very clear that there is excess capacity in the outdated sector that we are dealing with globally. We never stated that there are overcapacity issues in the advanced sector. In my view, new energy capacity shall replace fossil energy capacity in the long run.

With that said, on a global scale, the whole energy industry's overcapacity is in the fossil fuel space. The US needs to reduce excess capacity in fossil fuels, while Europe also needs to follow suit. New energy capacity is insufficient, so don't get confused and think that the capacity utilization rate is low. To summarize: similar to what we had been dealing with in the 90s, the overcapacity exists in the outdated technology, and is replaced by new technology. Now the new energy sector is rising, short of supply, is to replace the outdated fossil fuel energy. The overcapacity problem exists in the fossil fuel energy industry, not the new energy industry. 

Step by step, we could support the BRI partner countries to achieve industrialization following the development path China has gone in the past 20 years, skipping right over fossil energy and transitioning directly into new energy. Most BRI partner countries currently face electricity shortages. In many Latin American and African countries, most people can't afford to take hot showers. Our new energy innovations can make it possible for them to take a shower with solar water heaters. We help them install solar panels even though they are unable to do so. It is a huge market demand, at the same time, climate change itself is urgently needed to be resolved for BRI partner countries. In this regard, there is huge potential to develop this regional market.

I can only say that it is from the perspective of solving the practical needs of developing countries and improving their living standards. On the other hand, we can go back and look at China's successful experience in transitioning to both new electric power and new-energy vehicles. Developing countries such as Vietnam, Malaysia, Indonesia, or Latin America are in our level of development when we were 10-20 years ago. There is demand for, for example, a solar water heater. Those countries can simply copy over the development path in China, and then they can go and develop it themselves.

China's Ministry of Commerce (MOFCOM) on Thursday urged the EU to make decisions based on facts and rules regarding its anti-subsidy investigation of Chinese electric vehicles (EVs). 

The remarks come in response to foreign media reports that the EU is conducting an anti-subsidy investigation on Chinese EVs because Chinese car companies have received subsidies from the Chinese government, which has resulted in unfair price competition for European car companies.

He Yongqian, the newly appointed MOFCOM spokesperson, emphasized the importance of the EU recognizing mutually agreed-upon facts and rules, rather than making unilateral assertions.

Europe should acknowledge the facts that China's competitive advantages in EVs does not stem from subsidies, and that cooperation between China and the EU benefits both parties, while European automakers are against trade protectionism too, the spokesperson said.

Currently, China and the EU are engaged in negotiations regarding the anti-subsidy investigations, and facts and rules should be the "two main pillars of the negotiations," He noted.

It shows that the basis for the anti-subsidy investigation proposed by the European side is not sufficient, and they are actually exaggerating or misleading parties in certain aspects. To resolve the dispute, starting from an incorrect point will only lead the situation further astray, Cui Hongjian, a professor from Beijing Foreign Studies University's Academy of Regional and Global Governance, told the Global Times on Thursday. 

At the same time, the European side should consider the negotiations in the context of overall EU-China relations, as cooperation in the EV sector and other green industries can reflect common interests between China and the EU, Cui said.

After the European Commission in June revealed a list of protectionist duties it would levy on EV imports from China, it has sparked opposition and concerns from governments and businesses across the continent.

US EV giant Tesla on Wednesday raised prices of its Model 3 cars in European countries including Germany, the Netherlands and Spain by about 1,500 euros ($1,622) after the EU imposed tariffs on EVs made in China, Reuters reported on Thursday.

Hungary on Wednesday voiced its opposition against the EU's decision to impose extra tariffs on China-made EVs, as European officials and businesspeople continued to express their dissatisfaction of the EU actions. 

Major German carmakers including BMW, Mercedes-Benz and Volkswagen also criticized the planned tariff and voiced their support for fair competition and free world trade.

China's success in the EV sector is primarily driven by technological innovation, the country's strong supply chain, and the highly competitive domestic market, rather than relying on subsidies. The EU's assertion that China's affordable EVs are heavily subsidized and disrupt the market is untrue, experts said.

The decision to impose additional tariff on Chinese EVs is a protectionist move to protect its traditional industry and is politically motivated, Zhang Xiang, secretary general of the International Intelligent Vehicle Engineering Association, told the Global Times on Thursday.

In reality, it is the EU's protectionist measures targeting Chinese companies that are causing market disruption and creating barriers for Chinese companies, experts said.

On Wednesday, MOFCOM launched a trade and investment barrier investigation into the relevant practices under EU's foreign subsidy investigations in response to requests from Chinese industry groups.

The Chinese ministry also said on Thursday that its anti-dumping investigation linked to brandy imported from the EU was already under way. A hearing will be held on July 18 to allow stakeholders to present their opinions and provide evidence.

"Europe should meet China in the half way and jointly manage differences, rather than provoke and escalate disputes. Both sides should strive to avoid the lose-lose situation and seek practical solutions," Cui said.

Chinese experts said on Saturday that Germany's expected abstention would inject uncertainty into the European Union's vote on imposing provisional tariffs on China-made electric vehicles (EVs) as the move of the bloc's biggest economy is expected to sway undecided member states. Experts also urged the bloc to engage in consultations with China in a pragmatic way, avoiding politicizing trade and potential backlash on its industrial development.

Germany is set to abstain in Monday's vote, which marks the first test of support for the EU's landmark trade case, Reuters reported on Saturday citing sources.

The European Commission (EC), the EU's executive arm, has confirmed provisional tariffs on Chinese EV makers starting July 5, despite strong opposition within the bloc. However, a final decision on definitive duties will require a vote by EU member countries.

Experts noted that Germany's potential move signifies support for further tariff consultations with China to seek solutions accepted by both sides, as the final imposition of the tariff will greatly harm EU automakers' global competitiveness and hinder its overall effort toward a green transition.

"Germany, a key EU member, could significantly influence other member states' decisions with its stance and policy choices," Zhang Jian, a vice president of the China Institutes of Contemporary International Relations, told the Global Times on Saturday, saying that Germany's stance could sway undecided countries towards either adopting similar measures or opposing the tariffs.

According to an informal poll conducted by Reuters among EU governments, a majority of countries are currently deliberating on the pros and cons of the escalating trade dispute.

Since the EU announced plans to impose tariffs on Chinese EVs, the protectionist move has faced widespread opposition. Recently, European leaders and businesses have criticized the tariff hike, emphasizing its significant harm to the European auto industry, consumers, and progress toward carbon neutrality.

In stark contrast to the EU's unilateral actions, China's Ministry of Commerce said on July 8 that China has consistently advocated resolving frictions through dialogue and consultation to prevent the escalation of trade tensions, and urged Europe to show good faith and accelerate the negotiation process to achieve a mutually acceptable solution as soon as possible.

Zhang noted the strong voices within the EU calling for prompt negotiations with China, as the bloc is grappling with a range of economic challenges, which require seeking external market support and maintaining normal economic and trade relations with China.

"Therefore, there remains a significant potential of both sides reaching a certain degree of compromise to help avoid the worst-case scenario," Zhang said.

After the recent advisory vote, EU members will also vote in October on whether the Commission should propose multi-year tariffs after its investigation. These tariffs would be blocked if a "qualified majority" of at least 15 countries, representing 65 percent of the EU population, vote against them, according to media report.

Experts warned the EU over politicizing economic issues, or risk declining industrial competitiveness and rising economic stagnation, urging it to re-examine its trade policy towards China by pushing pragmatic bilateral dialogues in the coming months.

Mustafa Hyder Sayed, executive director of the Pakistan-China Institute, told the Global Times on Friday that Western countries' hegemonic actions are yet another attempt to contain China's peaceful rise, which he said will not succeed but rather harm global economic growth.

Farmers in Guodian township, Shangqiu city in Central China's Henan Province, feed newly hatched ducks on July 14, 2024. In recent years, Guodian has accelerated its agricultural industrialization. The town has established 31 farming zones, raising 1.2 million egg-laying ducks, with annual sales revenue exceeding 2 billion yuan ($280 million). Photo: VCG

The 20th Central Committee of the Communist Party of China (CPC) started its third plenary session in Beijing on Monday morning, where top Party officials will set the direction for China's further comprehensively deepening reform that will carry significant importance for China's economic and social development for years to come.  

Xi Jinping, general secretary of the CPC Central Committee, delivered a work report on behalf of the Political Bureau of the CPC Central Committee and expounded on a draft decision of the CPC Central Committee on further comprehensively deepening reform and advancing Chinese modernization, according to the Xinhua News Agency. 

The session will run from Monday to Thursday.

The meeting, often referred to as the third plenum and is held roughly once every five years, played a critical role in China's reform and opening-up that started in 1978 and underpinned China's economic miracle over the past four decades or so. This year's session is expected to focus on further deepening reform and expanding high-level opening-up, in order to promote high-quality development and advance Chinese modernization, experts said. 

Given China's increasingly important role on the global stage as the biggest contributor to global growth, the third plenum has also drawn widespread attention from around the world, as many are looking to major reform measures in the world's second-largest economy that could create greater opportunities. Coming as the world is faced with rising geo-economic tension, the third plenum will offer a sense of continuity and certainty, as it will highlight China's unwavering commitment to reform and opening-up, even as some advanced economies have turned inward and become protectionist, experts noted. 

Setting the direction

While there was not much information about the closed-door meeting on Monday, recent top meetings have offered a window into the top agenda of the session. 

Among the top items on the agenda, top Party officials will deliberate on a draft of The CPC Central Committee's Decision on Further Comprehensively Deepening Reform and Advancing Chinese Modernization, according to a meeting of the Political Bureau of the CPC Central Committee held on June 27, where the date for the third plenary session was announced, Xinhua reported. 

In the draft, the new situation and new problems faced in advancing Chinese modernization were thoroughly analyzed, the overall arrangements for further comprehensively deepening reform centering around advancing Chinese modernization were scientifically planned, and the draft will serve as a guiding document for further comprehensively deepening reform on the new journey, according to the Political Bureau meeting. 

A communique is expected to be released after the conclusion of the session. For example, the communique of the Third Plenary Session of the 18th CPC Central Committee in 2013 stated that we must pay more attention to implementing systematic, integrated and coordinated reforms, promoting the development of a socialist market economy, democratic politics, advanced culture, a harmonious society and ecological progress. 

The communique of the Third Plenary Session of the 19th CPC Central Committee in 2018 said that the plenary session reviewed and adopted a decision by the CPC Central Committee on deepening reform of Party and state institutions as well as a plan for the reform, which is a profound evolution in modernizing China's system and capacity for governance.

Economists and experts interviewed by the Global Times on Monday said that in line with decades of tradition, the ongoing third plenary session will focus on mapping out new reform measures that are aimed at further improving governance efficiency, promoting high-quality development and advancing Chinese modernization, while coping with new domestic and global situations.  

Zhang Yansheng, chief researcher of China Center for International Economic Exchanges, said that the third plenum will focus on three key themes: Chinese modernization, new quality productive forces, and high-quality development. 

"High-quality development is an unyielding principle in the new era, as well as a key theme and main task of comprehensively building China into a great modern socialist country," Zhang told the Global Times on Monday, noting that the key themes of China's high-quality development are innovation, coordination, green, openness and sharing. 

In line with recent top policy documents, the third plenum is expected to roll out major reform measures, so as to continue improving and developing the system of socialism with Chinese characteristics, and modernize China's system and capacity for governance, the overarching goal of further comprehensively deepening reform, experts said.  Specifically, measures are expected to further boost China's technological innovation capabilities and further improve the business environment, so as to foster new growth drivers to power sustainable high-quality development, according to experts. 

"As the Chinese economy is undergoing a transition from old growth drivers to new growth drivers, further comprehensively deepening reform is critical in ensuring the transition will be stable and smooth," Su Wei, a professor from the Party School of the CPC Chongqing Municipal Committee, told the Global Times on Monday.  

Su said that reform and opening-up and innovation are two main sources for China's robust, sustainable development, even though the world is witnessing changes unseen in a century, including a new round of technological revolution.

Global significance  

Also, in line with China's long-standing policy of further opening its door to the world, the third plenary session will focus on further expanding high-standard opening-up, which will inject greater impetus to global development, as the world is facing growing risks and challenges amid a rapidly shifting global geo-economic situation marked by rising geopolitical tension and protectionism, experts said. 

In recent years, the US and some other Western countries have turned inward and increased protectionism, which has created huge obstacles for global development. Against this backdrop, the ongoing third plenary session's focus on deepening reform, including opening-up, "will play a critical role in pushing back against the anti-globalization trend, and offer profound significance in promoting global economic development," Su said. 

In stark contrast to chaotic situations in certain countries, the CPC's unwavering commitment to continuously deepening reform and expanding high-standard opening-up will also offer a much-needed sense of stability and certainty for the international community, experts said. 

"As the world is experiencing profound changes, the international community can clearly see which major power can offer consistency and stability, which one is more unpredictable and is full of risks," Li Haidong, a professor from the China Foreign Affairs University, told the Global Times on Monday, noting that when China is holding the significant plenum about modernization and reform, there is serious internal political struggle, polarization and instability in some countries including the US.

China's reform and opening-up policies in pursuit of Chinese modernization will also offer a great example for many developing countries around the world, especially those from the Global South, which are seeking their own modernization, experts said.