China and the United States reached consensus in economic and financial areas during the visit by US Treasury Secretary Janet Yellen, and Beijing is willing to work with Washington to turn the consensus into practical outcomes, thereby improving bilateral economic ties, a senior Chinese official said on Monday. Liao Min, vice-minister of finance, made the remarks while giving a briefing on the outcomes of Yellen's visit, which lasted from Thursday to Tuesday."Deepening economic and financial policy coordination and mutually beneficial cooperation between the world's two largest economies is of great significance for maintaining the stability of the economic and financial systems of both countries and the world, as well as for promoting post-pandemic economic recovery and development, for which China has always maintained an open and positive attitude," Liao said. The two sides will continue implementing the consensus under the framework of the economic and financial working groups established last year. The fourth meetings of the two working groups are scheduled to be held separately during the spring meetings in mid-April of the World Bank Group and the International Monetary Fund in Washington, Liao said. During her visit, Yellen met separately with Premier Li Qiang, Vice-Premier He Lifeng, Finance Minister Lan Fo'an and People's Bank of China Governor Pan Gongsheng. She also interacted with Chinese university students and scholars. Liao said the two sides have agreed to conduct in-depth discussions on the issue of balanced growth of the two countries and major economies through bilateral channels, which aligns with China's policy objectives and practices for economic transformation and high-quality development. They also agreed to maintain communication on issues such as addressing the debt issues of developing countries and reforms of international financial institutions under multilateral channels such as the G20, in order to jointly deal with global challenges. This comes as the global economy is experiencing high levels of debt, inflation and interest rates and low growth, with emerging markets and developing countries significantly affected by the spillover effects.Both sides agreed to continue conducting exchanges and cooperating on issues such as financial stability, sustainable finance, anti-money laundering efforts, and counterterrorism financing. Liao said that China attaches great importance to the so-called production capacity issue and provided a full and rational response to the US in all levels of meetings and discussions with Yellen. "China is aware of the concerns of the US and other relevant parties and is willing to strengthen communication and coordination with all parties. Based on market principles, we aim to rationally address and properly handle the disputes," he said, adding that the two sides will continue communication on the issue via the working groups.   Source: News Day

While Germany's economy is stalling, Italy is experiencing continued growth. But this has little to do with PM Giorgia Meloni's economic policies and everything to do with subsidies and new debt. Mauro Congedo has been finding and renovating small architectural treasures with his brother and father for 25 years in Salento — a peninsula in the southeast of Italy that makes up the "heel" of the country. The apartments and houses that Congedo restores in this rather remote region are now suddenly finding buyers from Germany and England. "Things are going well again," said the 50-year-old architect. During the coronavirus pandemic, business almost came to a standstill. But what happened afterward in Italy in the industry was "crazy" he says, dragging out the "a" for a long time. But look deeper and Congedo isn't the only one enthusiastic about the economic recovery in Italy.  Italy goes from problem child to head of the class While governments in Rome were used to announcing depressing growth forecasts and poor debt rankings in the years before the pandemic, the country is now quickly becoming Europe's growth engine. In the last quarter, the Italian economy grew by 0.6%, while the German economy shrunk by 0.3% in the same period. Beyond this short three-month snapshot, other figures for Europe's third-largest economy are impressive. "The Italian economy has grown by 3.8% since 2019," said Jörg Krämer, chief economist at Commerzbank. That is "twice as much as the French economy and five times more than the German economy," he told DW. In Germany, the prospects are indeed looking bleak. The Organization for Economic Cooperation and Development (OECD) predicts growth of 0.3% this year for Germany. Leading German experts are only expecting growth of 0.1%. Italy, on the other hand, is expected to grow by 0.7% this year, according to the OECD. The Italian stock market is also benefiting from the optimistic mood. The FTSE MIB benchmark index, which is made up of 40 big companies, rose by around 28% last year, more than any other European stock market indices. Italy is on track for more growth. Trust in the Italian government is returning It didn't always look so encouraging. Economists initially reacted very cautiously when Giorgia Meloni became prime minister in October 2022. During the election campaign, Meloni and her Brothers of Italy party announced a nationalist "Made in Italy" economic course, agitated against migrants and did not clearly distance herself from Russia. After her election, the German weekly Stern described her as the "most dangerous woman in Europe." But in terms of economic policy, Meloni has so far largely remained on the same course as her predecessor Mario Draghi. This course is paying off for Italy, at least on the bond market. The interest rate at which the county borrows money is back to the level before she took office. At a press conference earlier this year, Meloni tried to take credit for the economic upswing. Above all, the lack of political stability in the past had slowed the economy she said, speaking from a position firmly in the saddle. But how much of the growth is down to Meloni's success? "Not much," said Krämer from Commerzbank. "The strong growth can be explained by Italy's loose fiscal policy." That means Italy's growth is based primarily on new debt. While the Italian state's new debt before COVID-19 was 1.5% of gross domestic product (GDP), it has shot up in recent years and was 8.3% of GDP in the first half of 2023. The country's overall mountain of debt is growing, too. In January, the EU Commission estimated that it would exceed 140% of GDP this year and continue to rise in 2025. For comparison, in Germany the debt ratio is 66%, in France it is almost 100%. Huge construction subsidies inject the economy To help the economy, the Italian state has been funding various home renovation measures since the end of 2020. For some measures they pay around 50% of the cost, others get even more. The most popular is called the "Superbonus 110" for energy-efficient renovations. Through this program anyone who renovates their house or apartment to make it more energy-efficient will get the entire expenses plus a 10% refund on top through a tax reduction scheme. "You can imagine that construction investments have skyrocketed," said economist and Italy expert Krämer. "This effect explains two-thirds of the strong growth we are seeing." The architect Mauro Congedo is not overly enthusiastic about the Superbonus 110 program. Everything has become more expensive. On top of inflation, the program drove up the costs of materials and workers. "If the state pays for everything, then people don't care how much it costs," said Congedo. In addition, no one controls the prices. Construction companies from Naples, Bari and the provincial capital Lecce asked him several times to adjust his costs upward. "They wanted me to charge twice as much. I didn't do it. It feels like stealing," he said. He thinks a bonus for the energy-efficient renovation of buildings is a good thing in general. However, owners should have to contribute to the costs and not just get it all from the government. Congedo doesn't think much about Giorgia Meloni either. The only good thing she did was get the Superbonus 110 program under control, he says. Money from the European Union In fact, the ultra-right head of government has slowed down the Superbonus program introduced by the left-wing Five Star Movement. In 2023, it covered a maximum 70% of costs and this year up to 65% of the renovation costs. Nevertheless, the tax credits resulting from the program will significantly reduce government revenue in the next few years. For the government in Rome it is probably very convenient that billions are still flowing — primarily from Brussels. Italy is one of the biggest recipients of the EU's COVID recovery fund. By 2026, almost €200 billion ($216 billion) will be paid out to Italy in the form of subsidies and loans. "The Italian state must reduce its very high budget deficit by this time at the latest," ​​said Krämer. "If they only start saving then, then this Italian growth miracle will probably end because they didn't use the time for structural reforms." Mauro Congedo is worried that remnants of the Superbonus 110 program will remain for a long time. "The prices are very high, and we have incurred a lot of debt." Luckily, he won't run out of work anytime soon. He's currently working on eight projects at the same time.  

Migrant workers returning after the Lunar New Year holiday have low expectations for a pay rise this year, as the number of jobs is not as high as last year. China’s economy has endured a challenging exit from its zero-Covid policy, with its 5.2 per cent growth last year not being felt by consumers or the job market Although there were still four days remaining until the end of the Lunar New Year holiday earlier this month, Baiyun Railway Station in Guangzhou was already packed with migrant workers who had left their hinterland hometowns early to take up jobs in the southern manufacturing hub of Guangdong. Jobseekers of all ages, with accents from all over China, were lingering briefly at the station’s square, dragging suitcases and carrying backpacks, taking a moment to rest, before flocking to the neighbouring cities. Like many newcomers, twenty-something Li Xiao was hoping for a higher salary than his previous night shift factory job in the central province of Jiangxi. “I can accept a waiter job of about 4,500 yuan (US$650) or 5,000 yuan since production line workers are expected to earn about the same this year,” he said. Thirty-something Xu Chao was also hoping to find a job in a car parts factory in Jiangsu. “I’ve been in Guangdong for a few days. The wages are not as good as I thought. There are more electric car companies in the Yangtze River Delta, the opportunities and salaries there may be better” Xu said. Most returning workers have low expectations for a pay rise this year, as the number of jobs in the service or manufacturing sectors is not as high as last year. Dongguan, an export hub in Guangdong which is often the top choice for rural migrant workers, anticipated 163,000 job vacancies after the Lunar New Year, the state-backed China Youth Daily reported earlier this month, citing the local labour and social security bureau. “With fewer export orders, there have been more workers than positions in local companies. Factories are not struggling to recruit workers this year, as lots of migrant workers from Guizhou and Henan have already come back,” said Justin Xu, a manufacturer of lighting products for exports in the eastern province of Zhejiang. The influx of migrant workers is occurring as there are less opportunities in hinterland provinces, with jobseekers in Henan – China’s third most populous province and a key source of migrant workers – crowding a recent job fair. “Our company has a labour gap of about 20 people, but more than 60 people have expressed interest in applying,” a human resource manager said, according to the state-run Henan Daily. The arrival of migrant workers has already reduced the hourly wage for temporary workers in China’s export hubs of Shenzhen and Dongguan by around a third from three years ago to between 18 yuan (US$2.5) to 19 yuan after the Lunar New Year holiday, according to an employee surnamed Li at a recruitment agency in Guangzhou. The period following the Lunar New Year is traditionally the most understaffed and high-paying time of the year as lots of workers remain at home. Li partly attributed the weak demand to factories relocating overseas and corporate endeavours to reduce costs. “Factory owners, if they have any surplus money, are considering investing in plants abroad, which is the only area where they’re still willing to expand,” said Peng Biao, a textile and clothing supply chain specialist. However, overall expectations from factory profits to orders could be even lower this year, Peng added. China’s economy has endured a challenging exit from its zero-Covid policy, with its 5.2 per cent growth in gross domestic product last year not being felt by consumers or the job market. Demand for workers in the new energy infrastructure sector is set to be stronger than last year, but employers are not worried about a shortage even at tough construction sites. Wang Rongshuo, founder of the Guangzhou-based Yangshuo Green Construction, said the photovoltaics infrastructure integrator already has a waiting list for the 3,000 construction workers it plans to recruit this year. “We have a lot of projects across the country. The workers will need to move throughout the year to different construction sites.” Wang said. “Most of our workers are aged between 30 and early 40s. They can earn about 8,000 yuan a month.” The labour surplus is also being seen in some regions in Zhejiang. “Some factory owners have not yet started production so far this year, mainly due to insufficient export orders and operational difficulties,” according to Zhou Libin, manager of Tianshu Mechanical Technology. In the past, many cities or counties in Zhejiang chartered cars and planes to lure workers from central and western parts of China back at this time of the year, however, this was not the case this year, according to Zhou. “Perhaps the government is aware of the limited orders and insufficient production,” he added. Economic uncertainty in the manufacturing sector has also affected the small and micro service sector. “Last year I hired a helper, but I don’t plan to hire anyone this year. My husband and I will work harder. Utility bills are increasing, but we dare not raise prices. We’re doing migrant workers’ business, and their income this year may be worse than last year.” said Li Jie, who runs a breakfast room in Jiangxi.

Amid the economic crisis, Chinese exports saw a downfall for the first time since 2016 after global demand for Chinese-made goods slowed in 2023, CNN reported citing the Customs data released on Friday. According to CNN, the Chinese economy is struggling to stem deflationary pressures and consumer price inflation in 2023 was the weakest it has been in 14 years. Chinese exports were measured at USD 3.38 trillion in 2023, down by 4.6 per cent compared to the year before. In 2022, Chinese exports increased by 7 per cent from the year earlier. The last time China registered a decline in overseas shipments was in 2016 when exports fell 7.7 per cent. Imports also fell last year, by 5.5 per cent to USD 2.56 trillion, CNN reported, adding that it left the world's second-largest economy with a trade surplus of USD 823 billion. "The global economic recovery has been weak in the past year," Lyu Daliang, a spokesperson for the General Administration of Customs, told a Friday press conference in Beijing, adding, "Sluggish external demand has hit China's exports." He added that he expects China to continue facing 'difficulties' on export markets as global demand is likely to remain weak and "protectionism and unilateralism" hinder growth. The consumer price index for December improved slightly from November, but was down 0.3 per cent on the same month in 2022, the National Bureau of Statistics said Friday. For 2023 as a whole, prices were up by just 0.2 per cent over 2022, the weakest reading since 2009, when CPI fell by 0.7 per cent as a global recession hit. China is suffering a double-whammy of weak demand at home and abroad. December was the third month in a row that the consumer inflation gauge has fallen year-on-year, marking the longest run of declines since 2009. Food prices, especially the prices of pork, were a major drag. "Ongoing low core CPI inflation likely reflects dampened domestic demand due to the ongoing property downturn and stressed labour market," Goldman Sachs analysts said on Friday. According to CNN, the factory-gate prices were also subdued. The Producer Price Index dropped 2.7 per cent in December from the same period in 2022, the 15th consecutive month of declines. For 2023, the PPI fell 0.3 per cent. Looking ahead, analysts from Capital Economics expect core inflation to rise slightly, helped by a cyclical recovery in the Chinese economy. But deflationary pressures won't go away. "Weak global growth and continued over-investment in China means that deflation risks will continue to hang over its economy for some time," said analysts from Capital Economics on Friday. At USD 240 billion, trade with Russia hit a new record high in 2023, up 26 per cent from the previous year. Overall, it made up 4 per cent of China's total trade. The United States remained China's largest single-country trading partner in 2023, accounting for 11.2 per cent of total trade. However, that represented a drop in 2022 -- the first fall since 2019, when Washington and Beijing were in the middle of a prolonged trade war. ASEAN, the 10-member bloc in Southeast Asia, and the European Union accounted for 15.4 per cent and 13.2 per cent of total trade with China, the Chinese customs figures showed. The country also registered a 69 per cent surge in the total value of automobile exports last year, the highest among all categories, CNN reported. By volume, China shipped 5.22 million vehicles in 2023, up 57 per cent from 2022. That's in part thanks to surging growth in electric vehicles, said Lyu. "One out of every three cars exported by China is an electric passenger vehicle," he said at the press conference. "Looking to the future, we believe that China's auto industry still has a strong comprehensive competitive advantage and can continue to provide more and better innovative products to meet the needs of global consumers," he added. Earlier this week, a major Chinese car industry group said the country is "certain" to have surpassed Japan to become the world's largest car exporter last year, driven by strong demand in Russia and growing global appetite for EVs. The rankings will be confirmed once Japan's official annual figures are released, which are expected in the next few weeks.

In a bid to revitalise its tourism industry and boost its struggling economy post-pandemic, China has engaged in a series of diplomatic moves to attract foreign tourists, CNN reported. The most recent development is an agreement with Thailand, wherein both countries have decided to permanently waive visa requirements for each other's citizens, effective in March. This reciprocal visa-free scheme, announced by Thai Prime Minister Srettha Thavisin, follows Thailand's earlier decision in September to waive visas for Chinese tourists until February. The Chinese Foreign Ministry expressed optimism about the mutual visa exemptions, stating that it "serves the fundamental interests of both peoples," as reported by CNN. Ministry spokesperson Wang Wenbin, during a regular news briefing, said, "The government departments responsible for the matter are in close communication on the specifics. We look forward to the early implementation of the arrangement." China's efforts to attract international tourists have been evident in its previous initiatives. In November, China introduced a trial programme allowing visitors from France, Germany, Italy, the Netherlands, Spain, and Malaysia to enter visa-free for 15 days. This policy, initiated in December, is set to last for 12 months until the end of November this year. The National Immigration Administration reported that in December alone, 1,18,000 travellers from these six nations entered China without a visa under the new policy, with over 77 per cent of them visiting for sightseeing, leisure, or business activities. While the policy has shown initial success, its long-term impact remains to be seen. Tourists from distant countries, particularly in Europe, typically plan trips to China months in advance, and winter is not traditionally a peak tourist season due to cold weather in many parts of the country. China has also taken steps to facilitate travel for American tourists by simplifying the visa application process. Starting from January 1, travellers from the United States no longer need to submit proof for round-trip air tickets, hotel reservations, itinerary, or an invitation letter to apply for a tourist visa, as confirmed by the Chinese Embassy in the United States, according to CNN.   Source: Business Standard

Argentina has devalued the peso by more than 50%, along with cuts in spending in tough measures aimed at tackling a deep economic crisis. Argentina on Tuesday announced a significant devaluation of its currency as part of a series of drastic economic measures to address the country's ongoing economic challenges. The peso will be weakened by over 50% to 800 per dollar, new Economy Minister Luis Caputo said.   "For a few months, we're going to be worse than before," Caputo said in a televised message, two days after libertarian Javier Milei took charge as the president of South America's second largest economy. Argentina's annual inflation rate is at 143%, the currency has plummeted, and 40% of Argentines are living in poverty. At his swearing-in ceremony, Milei promised a new era for the country but warned of painful austerity measures.   "The bottom line is that there is no alternative to austerity, and there is no alternative to shock treatment," Milei warned over the weekend.  On Tuesday the economy minister also said that there would be cuts in the state's generous subsidies of fuel and transport. Caputo said politicians had long supported the subsidies to "deceive people into believing that they are putting money in their pockets. But as all Argentines will have already realized, these subsidies are not free but are paid with inflation."   He said Argentina needed to handle a deep fiscal deficit, which he put at 5.5% of GDP, adding that the country had a fiscal deficit for 113 of the last 123 years, the cause of its economic crisis. "We're here to solve this problem at the root," he said. "For this we need to solve our addiction to a fiscal deficit." Curbs on state spending  Aside from the spending cuts, Caputo also said that all state advertising would be suspended for a year, adding that it had cost 34 billion pesos ($92 million, €86 millon) in 2023. In addition "The state will not tender any more new public works, and will cancel approved tenders whose development has not yet begun."   "The reality is that there is no money to pay for more public works that, as all Argentines know, often end up in the pockets of politicians or businessmen on duty," he said. Another step would be canceling the renewal of public jobs contracts that were less than a year old. President Milei has already cut nine government ministries, which Caputo said would slash 34% of all political jobs.   Meanwhile, the International Monetary Fund (IMF) deemed the measures "bold" and said in a statement it would "help stabilize the economy and set the basis for more sustainable and private-sector led growth" following "serious policy setbacks" in the past months. "I welcome the decisive measures," IMF chief Kristalina Georgieva said, calling it "an important step toward restoring stability and rebuilding the country's economic potential."

The third plenum of the Chinese Communist Party (CCP), usually held in October or November, has not been officially announced this year. Some China observers attributed the absence of a designated date to Chinese leader Xi Jinping’s autocratic decision-making, and others speculate the CCP could be facing unprecedented risks in its governance. The third plenum is significant because it shapes the country’s economic reforms for the next five to ten years. Every five years, the Party Congress convenes, resulting in the election of a new Central Committee comprising the top leadership. Last October, the regime held the 20th meeting of its rubber-stamp legislature, the National People’s Congress (NPC), with the newly formed Central Committee, in which Xi secured an unprecedented third term. The Central Committee would hold up to seven closed-door sessions, each with a different focus. Xi Emulates Mao Xi has been “acting outside conventional norms, governing the nation and the Party arbitrarily,” Wu Zuolai, a Chinese history scholar and political commentator residing in California, told the Chinese language edition of The Epoch Times on Dec. 4. Particularly after Xi secured his third term, he began to act like former CCP leader Mao Zedong, who took the national meeting as “a formality” and even delayed one of them, Mr. Wu said. Mao held the ninth meeting of the NPC in 1969, which is 13 years after the eighth NPC in 1956. Mr. Wu pointed out that Xi acts on his whims, and “he no longer cares about what others think.” 3 Main Problems U.S.-based commentator Lan Su told The Epoch Times that “personnel matters, economic issues, and diplomatic concerns” are the three insurmountable problems for Xi. Mr. Lan said that the personnel matters revolve around the recent dismissal of top officials, including Minister of National Defense Li Shangfu, Minister of Foreign Affairs Qin Gang, as well as the commander and political commissar of the Rocket Force, Li Yuchao and Xu Zhongbo, respectively, all of whom held their positions for less than a year. The decision on whether to revoke their memberships from the Central Committee has not yet been announced. China’s economy is experiencing a significant downturn that is undeniable, according to Mr. Lan, adding, “Xi cannot prevent discussions about the root cause of the problem, as it pertains to the economic strategy for the upcoming years, and Xi cannot sidestep the issue.” The China-U.S. relationship is undoubtedly a topic that will be addressed, the China observer said. “If Xi fails to present convincing measures to sway the CCP and bolster his authority within the Party on these three issues, there’s a high likelihood that he will postpone the third plenum.” CCP Infighting Su Ziyun, director of the National Defense Resources and Industry Research at the Institute for National Defense and Security, said postponing the third plenum indicates the CCP is entangled in its internal struggles. Furthermore, “China has yet to announce its new national defense minister,” he told The Epoch Times. Mr. Su believes that Xi’s authority within the Party is not absolute. “At present, it appears that Xi wields power, but he is not widely respected [by CCP officials], and his authority is being challenged.” Upon securing a third term as the Party’s leader last October and consolidating his power by promoting his close confidants to significant positions, Xi encountered public criticism and political opposition for his three-year stringent zero-COVID policy and the humanitarian crises it brought about. The “white paper revolution” that began in November 2022 played a pivotal role in ending the zero-COVID policy. Protesters, primarily young people, displayed banners condemning the pandemic lockdowns and expressing anti-Xi sentiments across the country. Consequently, Xi’s popularity saw a significant decline, affecting both public opinion and his standing within the Party. “If Xi cannot navigate this situation effectively, he might not be able to secure a fourth term,” Mr. Su said. This year, the CCP has experienced internal dissent directed at Xi, driven by the slow economic recovery following the lifting of pandemic measures and ongoing challenges in international relations. A report from Nikkei Asia revealed that during the annual Beidaihe conclave or “summer summit” in August, Party elders called for accountability from Xi and voiced various concerns. Additionally, the death of former Premier Li Keqiang is linked by some to actions taken by Xi, further escalating the pressure on him. Mr. Su said Xi created a difficult path for China by tightening control of the private industry, engaging in a trade war with the United States, adopting the strategies of wolf-warrior diplomacy, and pursuing military expansion, among other things. “I believe Xi is facing numerous dissenting voices behind the scenes,” he said. Military Leadership in Jeopardy The consecutive dismissal of high-ranking members within the Rocket Force has a “significant impact,” according to Li Yuanhua, a Chinese historian residing in Australia. The Epoch Times reported in September that Xi’s suppression of key figures in the Rocket Force and its related sectors was a carefully orchestrated operation aimed at individuals who opposed Xi’s military plan to attack Taiwan. Mr. Li told the publication that in the CCP’s military, the phrase “making political mistakes” refers to showing disloyalty to Xi. Nevertheless, the military operates in cliques and fosters a strong sense of brotherhood. “If you single out one person, it’s akin to targeting an entire faction and several individuals,” he said. Mr. Li said that this is one of the reasons why the regime has not been able to appoint a new defense minister, and Xi would not want to appoint someone with grievances, as such a person is unlikely to be loyal to him. “I believe he is facing a huge crisis in the military.” Source: Epardafas 

National Bureau of Statistics said some regions in Guizhou province had falsified data, while county governments in Shaanxi province had intervened in data gathering The bureau inspected several provinces in summer amid an effort to improve data accuracy, while another round of visits started earlier last month China’s statistics authority has issued a fresh warning to local authorities over fabricating statistics and intervening in data gathering to overinflate performance as part of a latest bid to improve data accuracy and help refine Beijing’s economic decision-making. The National Bureau of Statistics (NBS) on Thursday indicated that some regions in the southwestern province of Guizhou were still falsifying data, while it said that some county governments in the northwestern Shaanxi province had intervened in data gathering. But the bureau did not provide names and the data involved, or reveal any punishments, according to two statements published on its website. Analysts have long been concerned over the accuracy and authenticity of China’s data, as well as a lack of transparency, while internally, Beijing needs reliable figures to guide its policy direction. The bureau inspected several provinces in summer, including Hebei, Heilongjiang, Henan, Hunan, Guizhou and Shaanxi, to ensure raw economic data was being gleaned from genuine businesses and had not been inflated by officials. A new round of visits started earlier last month, with another six provinces as well as the Ministry of Commerce and the Ministry of Natural Resources inspected. A twice-a-decade nationwide economic census of businesses and households has also started, which is hoped would provide information on the post-Covid landscape as well as highlight the losses businesses suffered due to China’s zero-Covid policy. “Data reliability is fundamentally important for rational policymaking, as well as for business decision-making,” said Chen Zhiwu, chair professor of finance at the University of Hong Kong. “It’s definitely in the government’s interest to ensure maximum data reliability.” In meetings with local officials, the statistics bureau said that some city and county level officials in Henan province lacked a full understanding of the “extreme criticality and exigencies” of data authenticity. They had also delayed amending falsified data, according to media reports in China. NBS director Kang Yi was also quoted as saying that some county governments padded gross domestic product and other economic statistics as part of “macroeconomic management”. Local officials tend to inflate economic figures to boost their promotion prospects or because they are under pressure to meet economic growth targets. The widening local government debt crisis has also led to increased efforts to falsify data. Amid rising debt, property slump, data may be China’s next financial hurdle In a rare move in October, the Standing Committee of the National People’s Congress warned some asset quality data at small and medium-sized financial institutions did not “truly reflect the actual situation”. Beijing has previously punished officials and overhauled data collection and reporting systems, including centralised data preparation and announcements at state and provincial levels. Chen at the University of Hong Kong said a structural way would be to make the statistics bureaus independent of political interference. “This is doable if Beijing is really serious about rational policymaking,” he added. The NBS has collected an increasing amount of its data, including industrial output, directly from large enterprises or through surveys. Source: South China Morning Post

In a recent Twitter statement, Parliament Member Rajendra Bajgain raised alarming concerns about the economic burden posed by Nepal’s Pokhara International Airport. Despite initial hopes of alleviating traffic at Tribhuvan International Airport and boosting regional tourism, recent revelations shed light on the airport’s financial struggles since its inauguration. The airport, which was handed over to the government following an agreement with China’s state-owned contractor CAMCE, has faced challenges in attracting international airlines. Currently, only a handful of domestic flights operate from the airport, with no significant interest from airlines to initiate international flights. Bajgain voiced concerns about the financial implications of Nepal’s loan from China for the airport’s construction in a Twitter statement. With an outstanding debt of 22 billion Rupees, the airport faces challenges in attracting international airlines since its inauguration, raising doubts about its revenue-generating potential. Bajgain highlights the first maturity deadline of the loan in 2022 and a subsequent one in October 2023, with a penalty and substantial annual interest rate compounding Nepal’s economic worries. The 5% annual interest rate alone accumulates to a significant Rs 110,299,200, adding to the financial strain. China is set to enhance its presence in Pokhara and surrounding areas by utilizing the Pokhara International Airport. On January 1, Prime Minister Pushpa Kamal Dahal ‘Prachanda’ inaugurated the regional international airport, which was constructed with assistance from China, in the popular tourist destination of Pokhara in western Nepal. Initially, the airport served only domestic flights but, six months later, on June 21, it welcomed its first international flight from Chengdu Airport in China, operated by Sichuan Airlines. The construction of Pokhara International Airport was funded through a loan of Rs 22 billion from China’s Exim Bank. However, Nepal is facing challenges in repaying this debt, as the country must generate profits from operating the airport to cover the loan. China has further fueled controversy surrounding the project by stating that it falls under the Belt and Road Initiative (BRI). Chinese Ambassador to Nepal, Chen Song, once again reiterated that Pokhara International Airport is a significant flagship project of China’s ambitious Belt and Road Initiative (BRI). His remarks were made during the first international commercial plane landing event at the airport on 21st June. Ambassador Song also previously had emphasized the airport’s connection to the BRI during its inauguration. On December 31, the Chinese Embassy in Nepal proudly declared the Pokhara Regional International Airport (PRIA) as a prominent flagship project of the BRI. However, in reality, the concessional loan agreement between the Civil Aviation Authority of Nepal and China EXIM Bank had not mentioned the BRI. The work of Pokhara International Airport had already started even before the BRI scheme enters Nepal. In 2012, an agreement was reached between Nepal and China to build the airport in Nepal. In May 2014, two years before the loan was agreed, China CAMC Engineering was given the construction contract, at a time when China’s BRI was in a nascent phase. Chinese President Xi first announced the idea of BRI in 2013 as ‘One Belt, One Road’. After Nepal and China signed the framework agreement on BRI in 2017, Nepal had initially selected 35 projects to be undertaken under Chinese President Xi Jinping’s flagship connectivity project. Later, upon Beijing’s request, the total number of projects was whittled down to nine with Pokhara airport off the list. The limited number of charter flights in Pokhara airport highlights the struggle to attract international airlines and fulfill the airport’s intended purpose. With the loan’s grace period set at seven years and a repayment term of 20 years, Nepal faces a daunting financial challenge. Bajgain’s concerns underscore the need for a comprehensive strategy to address the financial burden and ensure the economic sustainability of Pokhara International Airport. Source: https:english.pardafas.com

Xi Jinping and Joe Biden held talks for four hours in the backdrop of geopolitical tumult. They agreed on some fronts, like restarting military talks, but maintained divergent views on others, like China-Taiwan tensions. Chinese President Xi Jinping had a rare face-to-face meeting with US President Joe Biden on Wednesday. The two leaders met outside of San Francisco for the Asia Pacific Economic Cooperation (APEC) summit. Biden said the purpose of the meeting was "to understand each other." "As always, there's no substitute to face-to-face discussions," he said, adding that he and Xi "haven't always agreed" in the past.  Following the four-hour meeting, Biden said talks with Xi made "real progress." "I value the conversation I had today with President Xi," Biden said on X, formerly Twitter. "And today, we made real progress."  Biden was then asked at a news conference if he believed Xi was a dictator, to which he responded: "Well look he is, I mean he's a dictator in the sense that he's a guy who's running a country, a Communist country, that's based on a form of government totally different than ours." Biden had made similar comments earlier this year, sparking fierce backlash in Beijing. Biden and Xi discuss Israel's war against Hamas  Biden and Xi discussed the unfolding crisis in the Middle East, with Biden asking China to influence Iran to avoid taking steps that could be seen as provocative, a senior US official told reporters. Chinese officials reportedly told US officials they had engaged in discussions with Iran on the risks of a regional spillover from the Israel-Hamas war in the Gaza Strip.  Biden also pressed Xi to continue to withhold military support for Russia's invasion of Ukraine. Greater communications at military level, AI Biden and Xi agreed to restore some military-to-military communications between their armed forces at a time when unprofessional incidents between the two nations' ships and aircraft have spiked. Xi said after the meeting that he and Biden agreed to resume high-level military dialogues on the basis of equity and respect, according to a statement released by Xinhua state news agency. The leaders also agreed to set up joint government talks on the use of artificial intelligence, as well as a working group on counternarcotics cooperation, Xinhua said. Biden said they agreed to high-level communications too. "He [Xi] and I agreed that each one of us can pick up the phone call directly and we'll be heard immediately."  Xi and Biden say competition should not mean conflict At the opening of the talks, Biden said the two leaders must ensure that "competition does not lead to conflict."  Xi later told Biden that "planet Earth is big enough for both countries to succeed." He said that protectionism has weighed on the global economy. Xi said China did not seek to "surpass or unseat the United States" and stressed that "the United States should not scheme to suppress and contain China." The leaders' first meeting since November 2022 was held far from the APEC summit at Filoli estate, a venue miles outside San Francisco, chosen for its security, serenity and remoteness. Taiwan biggest issue in ties, Xi tells Biden A senior US official told reporters after the meeting that Xi told Biden Taiwan is the biggest issue is US-China ties. The official quoted Xi as saying China's preference was for peaceful reunification with Taiwan but went on to talk about conditions in which force could be used. China continues to claim the island of Taiwan as its own territory. The US acknowledges China's position on Taiwan but does not take a position on Taiwan's status. "I'm not going to change that," Biden said. "That's not going to change." The White House said Biden also reaffirmed the US ironclad commitment to defending its Indo-Pacific allies. "The US side should... stop arming Taiwan, and support China's peaceful reunification," Xi told Biden, according to a readout from China's Foreign Ministry. Xi was trying to indicate that China is not preparing for a massive invasion of Taiwan, but that does not change the US approach, the official said. The White House said Biden raised concerns with Xi about China's "human rights abuses" in Xinjiang, Tibet and Hong Kong.  Economic challenges According to Beijing's description of the meeting, Xi pressed Biden to lift sanctions and change policies on export controls for sensitive equipment. "Stifling China's technological progress is nothing but a move to contain China's high-quality development and deprive the Chinese people of their right to development," the readout said. White House checks off topics tackled in meeting White House national security spokesperson John Kirby earlier listed a number of topics that Biden intended to bring up with Xi at the meeting, which marked the Chinese leader's first time in the United States since 2017. That included "tensions in the Taiwan Strait" and the human rights situation faced by Uyghurs in Xinjiang province, Kirby had said on Wednesday. Kirby previously said the two leaders would likely also discuss other geopolitical issues such as North Korea's missile tests, Russia's invasion of Ukraine and Israel's war against Hamas, which the US and other governments categorize as a terrorist organization. On Tuesday, on the eve of the meeting, Biden walked back previous rhetoric about an economic "decoupling" from China. "We're not trying to decouple from China. What we're trying to do is change the relationship for the better," Biden said