Chinese President Xi Jinping on Friday stressed drawing on the experience since the return of Hong Kong and Macao to the motherland in maintaining the long-term prosperity and stability in the two special administrative regions (SAR).

Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, made the remarks here at a gathering celebrating the 25th anniversary of Macao's return to the motherland and the inaugural ceremony of the sixth-term government of the Macao SAR.

China maintains that when countries develop relations with Pacific Island countries, it is essential to let Pacific Island countries make their own decisions, put development first, and stay open and inclusive. No country should view Pacific Island countries as their "backyard," Chinese Foreign Ministry spokesperson Lin Jian said on Friday.

Lin made the marks in response to a question about Australia's announcement that it will provide substantial funding to support the police in the Solomon Islands, and that Australian media have expressed concerns about China's police cooperation with the Pacific Island nation.

We hope relevant parties will earnestly respect the independence and sovereignty of Pacific Island countries and not interfere in their internal affairs, Lin told a routine press conference.

According to the Australian Broadcasting Corporation (ABC), Australia announced on Friday that it will plough 190 million Australian dollars ($118 million) into the Royal Solomon Islands Police Force and set up a new police training center in the capital Honiara.

The new assistance package was unveiled by Australian Prime Minister Anthony Albanese in Canberra. In a joint statement, Albanese and Solomon Islands Prime Minister Jeremiah Manele said the package would provide the Pacific island nation with an "enduring sovereign security capability" and reduce its "reliance on external partners over time," ABC reported.

Although Albanese did not name China directly, ABC claimed that the Australian Prime Minister "suggested the deal would ensure China wouldn't be able to grow its policing and security presence." 

The Australian Financial Review also hyped that the latest move by the federal government sought "to curb China's security ambitions in the Pacific," while Australia's 9News network published a report titled "Australia and Solomon Islands sign $190 million security deal in blow to China."

"This reflects the narrow mind-set of the Australian media, which views the police cooperation between China and the Solomon Islands as an erosion of Australia's influence in this South Pacific island nation," Chen Hong, director of the Australian Studies Center of East China Normal University, told the Global Times on Friday.

China-Solomon Islands cooperation is based on equality and mutual benefit, without attaching any political conditions and not targeting any third party, Chen said. "Due to this zero-sum game mentality, the Australian side has distorted the police cooperation between China and the Solomon Islands, demonstrating its desire to exclude China's coordination with other countries in this region."

The expert further emphasized that, particularly in light of the current stabilizing and improving relations between China and Australia, the Australian media should abandon their narrow mind-set. "Australia should recognize that China is a partner rather than a competitor, and China has no intention of participating in any so-called competition with Australia in the South Pacific region. Such a narrow perspective from the Australian side is counterproductive to the advancement of bilateral relations," he said.

According to ABC on Thursday, Australian think tank Australian Strategic Policy Institute, known for its critical stance on China, will have its taxpayer funding cut after a sweeping government review of public support for national security research.

"Given the recent improving ties, Australia should collaborate more closely with China and intensify its efforts to strengthen bilateral relations, which not only aligns with the shared interests of both nations but also contributes positively to regional stability, peace, and development," Chen told the Global Times.

On December 3, one day after the US government announced yet another round of restrictions on chip sales to Chinese firms, four Chinese industry associations, including the China Semiconductor Industry Association (CSIA) and the Internet Society of China (ISC), issued firmly worded statements declaring that US chip products are no longer safe and reliable. 

Behind the strongly-worded statements are the profound indignation among Chinese industries over the US government's relentless campaign to target an ever-growing number of Chinese companies, and the determination to ensure safe and reliable chip supplies for relevant Chinese industries, according to Wei Shaojun, vice chairman of the CSIA. 

"The US government has repeatedly suppressed Chinese semiconductor companies, and CSIA members have been very outraged about this. So, it is the CSIA's responsibility to speak out," Wei told the Global Times in an interview on Thursday, noting that more than 240 Chinese semiconductor companies been added to the US' so-called Entity List so far, accounting for one-quarter of the CSIA members, or one-third, if affected foreign CSIA members are included.

In the statement on December 3, the CSIA blasted the US government's latest move of adding more than 140 Chinese firms to its so-called Entity List, saying the US arbitrary export control measures against Chinese firms have affected the stable supply of US chip products. "US chip products are no longer safe and reliable and relevant Chinese industries will have to be cautious in purchasing US chips," it said.

Also making the same determination are three other Chinese industry associations that represent the main buyers of chips - the ISC, the China Association of Communications Enterprises, and the China Association of Automobile Manufacturers. Relevant Chinese ministries, including the Ministry of Commerce, also slammed the US move and vowed to take "necessary" measures to resolutely safeguard its legitimate rights and interests.

China's innovation edge

The statements from the Chinese industry associations showed a "stronger-than-before attitude" and "they expressed our strong indignation," Tu Xinquan, dean of China Institute for WTO Studies at the University of International Business and Economics and a consultant for the CSIA, told the Global Times.

As the US government is bent on escalating the crackdown measures, "we must take some necessary measures to firmly safeguard our legitimate rights and interests," Tu said, "we must accordingly encourage and support the purchase of reliable and safe products, whether they are made by Chinese companies or in other countries or regions." 

For domestic internet companies, they need to "promptly adjust their foreign cooperation and development strategies," Pei Wei, Deputy Secretary General of the ISC, told the Global Times in an interview. "They need to diversify the supply chain layout, especially for the procurement of key technologies and components, to reduce the reliance on a single source." 

Chinese internet companies should establish partnerships with chip manufacturers in countries and regions outside the US, strengthen support for domestic and locally produced chips, so as to diversify risks and enhance supply chain security and stability, Pei further noted. 

"At the same time, we must also improve our internal capabilities and continue to build independent research and development, production and manufacturing capabilities," Pei said. 

Wei also urged support for reliable chip supplies in the face of the US' relentless crackdown campaign. 

"We call on the Chinese government to support the stable development of reliable semiconductor suppliers; we also call on semiconductor companies in relevant countries and regions to strive to become reliable semiconductor industry suppliers," he said. "Suppression will not stop us from development. Chinese industries will become stronger and more confident in our development."  

Broader cooperation needed

In response to the US' government's relentless crackdown campaign, Chinese industries should also remain open for cooperation with their foreign counterparts, the leaders of the industries also said. 

"The current success and achievement of the semiconductor industry are the result of global competition and cooperation. Closed development is not conducive to technological progresses and breakthroughs in the industry, and will harm the interests of global consumers," Wei said, urging the US to return to the stage for fair competition. 

Tu noted that it is the US government's policies, not US companies, that make US chip products unsafe and unreliable. "The restrictions are on exports, so they are actually restrictions on US companies," he said. 

Pei of the ISC also called for principles of openness, inclusiveness and win-win results for international cooperation. "Chinese and foreign industries can conduct deep cooperation in areas such as research and development, market exploration and talent training to share the development results," Pei said.  

President Xi Jinping on Friday said the central authorities fully support Hong Kong in aligning with national strategies and fostering new momentum and advantages for economic development, the Xinhua News Agency reported.

Xi made the remarks when meeting with Chief Executive of the Hong Kong Special Administrative Region (HKSAR) John Lee, who is on a duty visit to Beijing. During the meeting, Xi heard a report from Lee on Hong Kong's current situation and the HKSAR government's work.

Noting that Hong Kong faces new development opportunities, Xi said the central authorities would fully, firmly and accurately implement the "one country, two systems" policy, and fully support the chief executive and the HKSAR government in uniting and leading all sectors of society in actively pursuing reform and progress, and in pursuing prosperity through innovation and creativity.
Strong backing

According to the HKSAR government, Lee's briefing includes the latest economic, social and political situation in Hong Kong.

Commending Lee's work over the past year, Xi said Lee had led the HKSAR government in shouldering responsibilities and delivering concrete results.

In the past year, the HKSAR government has completed historic legislation under Article 23 of the HKSAR Basic Law, pooled resources in boosting economic development, addressed livelihood problems such as housing and healthcare, strengthened external exchanges and cooperation, and continuously enhanced Hong Kong's international prestige, thus further consolidating Hong Kong's positive momentum of stability and development, Xi said.

The central authorities fully acknowledge the work done by Lee and the HKSAR government, he said.

Fan Peng, a research fellow at the Chinese Academy of Social Sciences' Institute of Political Sciences, said that in 2024, one of the most outstanding achievements is the legislation of Article 23 of the Basic Law of the HKSAR, a historic mission.

"In terms of system design, the legislation makes Hong Kong's accountability to the central government something that is no longer an abstract political principle, but internalized in the operation of 'one country, two systems' and the actual governance of Hong Kong," Fan said.

According to the expert, in the past two years, the HKSAR government effectively handled a series of thorny issues involving the sovereign interests of national security. At the same time, Hong Kong has also carried out wide-ranging patriotic education, with the social atmosphere clearly changing.

Lee's report in Beijing came after the annual Central Economic Work Conference in the capital, which stressed the need to implement more proactive and impactful macro policies, expand high-standard opening up and keep foreign trade and foreign investment stable.

Lau Siu-kai, a consultant to the Chinese Association of Hong Kong and Macao Studies think tank, believed that the central government appreciates that in the past year or two, HKSAR was seeking opportunities in the Middle East and Southeast Asian countries to mitigate the impact from Western repression and attempts to weaken the foundation of Hong Kong's economic development. But at the same time, it also requires Hong Kong to continue to step up efforts to open up space for international activities.

At such a critical point in time, Xi spoke highly of the HKSAR under Lee, which actually shows that the central government has consistently attached importance to the significant status and positive role of Hong Kong, and has unswervingly supported the region, and has always been a strong backing for Hong Kong's development, Fan said.

Further integration expected

Lee's itinerary, which runs from December 11 to 14, also includes meetings with members of various central government ministries, Hong Kong-based media said.

Before Lee's briefing to President Xi, Lee met with Beijing-based business people from Hong Kong as well as representatives from top universities in China's capital, calling for better interaction and integration between the mainland and Hong Kong.

During a lunch meeting on Thursday with 15 Hong Kong business representatives in Beijing, Lee praised the Hong Kong business community's efforts to promote the complementarity and mutual benefit of resources between Beijing and Hong Kong, and expected further strengthening of cooperation and exchanges, according to Lee's Facebook post.

Lee also encouraged young Hong Kong people in Beijing to embrace the unlimited opportunities for personal growth and asked Hong Kong business communities to help more Beijing companies list in Hong Kong and invest overseas using Hong Kong as a stepping stone, according to South China Morning Post.

After the lunch meeting, the chief executive held discussions with leaders from top-tier universities including Peking University, Tsinghua University, Renmin University, Beijing Normal University, Beihang University and Beijing Institute of Technology.

In a Facebook post after the meeting, Lee expressed gratitude for the institutions' continued support for Hong Kong, and hoped to foster cooperation between mainland and Hong Kong universities. He called for a joint effort to build a "talent highland," complementing each other's advantages.

According to Lau, reform and innovation are the two principles that Hong Kong should follow in its future governance and development, which makes its cooperation and integration with the mainland particularly important.

As an international financial hub, Hong Kong has advantages in terms of outbound business investment and internationalization, while the mainland has advantages in its number of talents, unified large market and policy efficiency, Fan noted, emphasizing the complementary advantages of the two places.

"Under the framework of 'one country, two systems', Hong Kong can integrate the advantages of governance capacity from both sides, which is more important in the long run than simply talking about short-term growth," Fan added.

"The Greater Bay Area is a crucial growth pole in the Chinese path to modernization. The mainland and Hong Kong have made great explorations not only in terms of trade and finance, and social connectivity, but also in terms of policy and institutional connectivity," Fan said, "The purpose is to drive innovation in science and technology, business and finance, and create new growth points with the Greater Bay Area as a whole."

The central government has set high expectations for Hong Kong in that regard, Fan said, noting that at a time when the dividends of globalization and the vitality of global innovation are declining, governance capacity is particularly important.

HKSAR Financial Secretary Paul Chan Mo-po, said at a business forum on Wednesday that the number of foreign and Chinese mainland firms as well as start-ups in Hong Kong has reached new highs in 2024, and the HKSAR will further help mainland businesses "go global" and attract foreign investment.

Ahead of Lee's departure on December 9, he met with Ren Hongbin, head of the China Council for the Promotion of International Trade (CCPIT) in Hong Kong. The two sides exchanged views on strengthening economic and trade exchanges between the mainland and Hong Kong, and facilitating the high-quality development of the Guangdong-Hong Kong-Macao Greater Bay Area.