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Friday, June 27, 2025

Who’s being set up as NATO agrees to boost military spending to 5% of GDP?, China rejects NATO Secretary General’ s manipulation of China-related issues

 

Illustration: Xia Qing/GT

Illustration: Xia Qing/GT

The 2025 NATO Summit was held from Tuesday to Wednesday in The Hague, the Netherlands. In the joint statement after the meeting, the most important "outcome" was an agreement to raise defense spending to 5 percent of GDP - a goal that prompted a "strong backlash" in Europe when it was proposed by the US earlier this year. NATO Secretary-General Mark Rutte, acting as Washington's "loyal canvasser," pulled out all the stops to "trick" European countries into loosening their purse strings: When the "Russia threat" was no longer enough, he trotted out the "China threat," making irresponsible comments about the Taiwan question and even smearing China using the Ukraine issue. This not only digs a pit for European countries but also causes trouble and chaos for the world.

Raising defense spending from 2 percent to 5 percent of GDP within a decade - more than doubling it - will amount to trillions of dollars in additional expenditure, making NATO one of the fastest-growing entities in global military spending. The last time NATO called for a military spending increase was in 2014, with most of the largest increases coming from Eastern European countries. Ten years on, have these nations become more secure because of this? The answer is obvious. Not only was Eastern Europe implicated in the war, but the whole of Europe was forced into the Ukrainian crisis, and the global economy has suffered as a result. NATO's unchecked and unrestrained military expansion is largely to blame.

Hyping claims that China's naval fleet is already the "same" size as the US and that China will "possess 1,000 nuclear warheads by 2030" is essentially an attempt to legitimize NATO's infiltration into the Asia-Pacific. By using the "China threat" to justify its military expansion, NATO even beat the US to the punch in pledging to "prepare for a possible conflict in the Taiwan Straits." If NATO insists on extending its war tentacles to Asia, it is almost certain that the more it increases its military spending, the greater the strategic suffering Europe will have to bear.

This logic of "engaging in military expansion while accusing others of being a threat" is not only foolish but also malicious. When Rutte emphasized that NATO "has no opt-out," it was nothing but intimidation for member countries that leaving the alliance midway is simply not an option. His claim of "securing our future," meanwhile, is precisely an attempt to completely tie Europe onto the US' war chariot. NATO, a war machine that should have been shut down long ago, now relies on clinging to US coattails and doing Washington's "dirty work" to survive, constantly spinning the absurd narrative that "war equals security" to scare Europeans. NATO has become Europe's net liability. A classic example is that if NATO had not expanded eastward, there would be no Russian-Ukrainian conflict. 

Among NATO's painstakingly groomed four "Indo-Pacific partners" (IP4), three leaders skipped this summit - partly due to concerns that, amid the current Middle Eastern turmoil, the summit "could become a trap." These countries neither want to get involved in Middle Eastern conflicts nor be forced to pledge to increase defense spending. US magazine The Diplomat said that Australia's post-9/11 alignment with the American missions in Iraq and Afghanistan drew the country into protracted conflicts. These conflicts, initiated by NATO led by the US, proved politically unpopular and financially draining. It is clear from this that the idea of "seeking peace through force" is actually unpopular in the international community.

The US' erratic behavior in recent years has led many European nations to believe they should do more to strengthen their own defense and reduce dependence on the US. But a dramatic increase in NATO military spending clearly runs counter to that goal. Before the summit, Rutte told US President Donald Trump that "Europe is going to pay in a big way, as they should, and it will be your win." When this comment came to light, it caused a media storm. Yet, this flattery and boasting was met with Trump's contempt and doubt about NATO's collective defense clause. Despite this, Rutte continued to reassure Europeans that they should "stop worrying" but focus on "this huge irritant, which is that we are not spending enough." NATO has long been overwhelmingly driven by US will, but this act of self-gaslighting reveals just how dire Europe's "strategic non-autonomy" has become. 

The era of NATO is long gone. Under the guiding principle of "America First," Washington repeatedly wields a "no money, no protection" stance, reducing NATO to a bargaining chip in US geopolitical trades. Allocating 5 percent of GDP to military spending is a heavy burden for European countries, but it still falls far short of satisfying Washington's geopolitical appetite and will only make the US ask for more from Europe. European nations, especially those unwilling to be dragged into wars, must remain clearheaded. - Global Times editorial: https://www.globaltimes.cn/page/202506/1336995.shtml

Chinese FM and MND spokesperson reject NATO Secretary General’ s manipulation of China-related issues


Chinese Foreign Ministry spokesperson Guo Jiakun

Chinese Foreign Ministry spokesperson Guo Jiakun



Some in NATO, by playing up international and regional tensions and slandering China's normal military buildup, seek nothing but excuses to allow NATO to drastically grow its military spending, arbitrarily reach beyond its geographical scope and mandate, and advance eastward into the Asia-Pacific, Chinese Foreign Ministry spokesperson Guo Jiakun said on Thursday. 

We firmly oppose NATO using China as an excuse to "expand eastward into the Asia-Pacific" and urge NATO to reflect on its own behaviors, change course, and contribute more to global security and stability, Zhang Xiaogang, a spokesperson for China's Ministry of National Defense, also stated on the same day.

These remarks were made in response to NATO chief Mark Rutte's claim on Wednesday that it's really important that NATO spends more, given factors including Russia-Ukraine conflict and so-called China's massive military buildup.

Guo noted that NATO countries already account for 55 percent of the world's total military spending in 2024. Yet they're still required to raise defense investment to 5 percent of GDP to build a "more lethal NATO." What exactly is NATO's objective behind this? NATO calls itself a regional organization, but it keeps reaching beyond the geographic scope defined in its treaty and into the Asia-Pacific by claiming that what happens there and in Euro-Atlantic are "interconnected". The world is not blind to NATO's calculations, and countries in the Asia-Pacific are certainly wary of it, said Guo. 

Guo stated that on Ukraine, China has all along been promoting talks for peace and actively pushing for a political settlement of the crisis. China has never provided weapons to any party to the conflict and exercised strict export control over dual-use articles. China's objective and impartial position and constructive role have been widely recognized by the international community, while NATO's disinformation cannot deceive people around the world. If NATO truly cares about the security of Europe and the world, it should stop adding fuel to the fire and instigating confrontation.

China acts as a builder of world peace, a contributor to global development, a defender for international order and a supplier of public good. On peace and security, China has the best track record among major countries. We call on NATO to examine its own behavior, listen to the just voice of the world and let go of its outdated Cold War mentality, bloc confrontation and zero-sum approach. Time for NATO to get its perception right about China and stop manipulating issues on China, Guo said. 

China will firmly uphold sovereignty, security, and development interests, and continue to do its part to make the world a more peaceful and stable place, Guo added.

When asked to comment on the NATO Secretary General's recent claims that NATO should strengthen its partnership with Indo-Pacific countries, citing so-called military challenges posed by China, Zhang stressed that China adheres to the path of peaceful development, and is committed to a national defense policy that is defensive in nature. China's military development is purely aimed at safeguarding national sovereignty, security and development interests. 

The claim that China is "providing Russia with key support during the Russia-Ukraine conflict" is complete nonsense, said Lü Xiang, a research fellow at the Chinese Academy of Social Sciences. "The root cause of the Russia-Ukraine conflict lies in the US long-term meddling in regional affairs. Europe, while being a participant in the conflict, is also a victim—yet under US pressure, it has been forced to go along with the situation."

The NATO Secretary General essentially serves as Washington's spokesperson in Europe, said Lü. As a product of the Cold War and the world's largest military alliance, NATO is gradually becoming a "zombie" organization in the post-Cold War era.

"In an attempt to justify its continued existence, it keeps exaggerating and fabricating so-called security threats, thereby aligning itself with US strategic objectives and pressuring member states to increase military spending," Lü  -  By Shen Sheng  added.  https://www.globaltimes.cn/page/202506/1337040.shtml 

Thursday, June 26, 2025

Summer Davos urges practical measures to safeguard free trade and Li warns of rising trade barriers

Guests attending the 16th Annual Meeting of the New Champions (AMNC), also known as the Summer Davos, in North China's Tianjin, exit the venue after opening plenary on June 25, 2025. Photo: Xinhua

Guests attending the 16th Annual Meeting of the New Champions (AMNC), also known as the Summer Davos, in North China's Tianjin, exit the venue after opening plenary on June 25, 2025. Photo: Xinhua


China is confident in and capable of maintaining rapid economic growth, Chinese Premier Li Qiang said Wednesday, vowing that the country will always keep the doors wide open and warmly welcome businesses from all countries to invest and deepen their roots in China.

Li made the remarks when addressing the opening plenary of the 16th Annual Meeting of the New Champions (AMNC), also known as the Summer Davos, in North China's Tianjin.

Themed "Entrepreneurship for a New Era," the event, held from Tuesday to Thursday, is gathering around 1,800 leading figures from more than 90 countries and regions to explore how entrepreneurship and emerging technologies can unlock more dynamic and resilient economies, Xinhua News Agency reported.

President of Ecuador Daniel Noboa, Prime Minister of Singapore Lawrence Wong, Prime Minister of Kyrgyzstan Adylbek Aleshovich Kasymaliev, Prime Minister of Senegal Ousmane Sonko, and Prime Minister of Vietnam Pham Minh Chinh would also attend AMNC this year, according to an earlier announcement of Chinese Foreign Ministry.

"Over the years, no matter how the international environment has changed, China's economy has consistently maintained a good momentum," Li said, noting that China's GDP grew by 5.4 percent in the first quarter of 2025 despite facing significantly heightened external shocks this year.

China's economic development is not about short-term spurts, but sustained progress toward long-term goals, Li added. He also noted that China is moving toward becoming a high-income country as a whole, driven by strong demand for consumption upgrades in the world's second-largest consumer and import market.

Li said China's sustained breakthroughs and advances in innovation will inject fresh vitality into global development, which will accelerate global economic growth, per Xinhua. 

He also called on the international community to take constructive actions in international economic and trade cooperation.

"Constructive actions mean we need to proactively take measures to safeguard free trade and multilateralism and promote the stable development of the world economy," Li said. The premier called for resolving disputes and differences through dialogue.

Li further said China will continue to deepen its integration and connectivity with the world market and strengthen industrial collaboration with various countries. 

Premier Li's speech has drawn broad positive response at the Summer Davos, as many international attendees recognize the achievements of China's high-quality development and major contributions to global trade and economic growth, eyeing greater opportunities from China's massive market and pioneering innovations.

Confidence in economy

During the Summer Davos, World Economic Forum President Borge Brende shared an optimistic outlook on China's economic prospects.

"I'm relatively optimistic for the Chinese economy, both in the medium-term and long-term. China has already diversified, in addition, China is pivoting from manufacturing of goods to more services and digital trade. We are also seeing a lot of new technologies being applied. China is doing very well in artificial intelligence (AI), on robotics," he said, reported Xinhua.

"There has been a 5.4 percent year-on-year growth in China in the first quarter this year, and the premier said key economic indicators continued to improve in the second quarter. Even though there are a lot of challenges, China is able to overcome them. That's very positive," Bassam Al-Ibrahim, a representative from General Retirement and Social Insurance Authority of Qatar, told the Global Times on the sidelines of the forum on Wednesday.

Now, China is probably at the forefront of innovation from all the technological aspects, and innovation is going to be one of the driving forces for China, especially AI, Al-Ibrahim said.

Joel Ruet, president of the Bridge Tank in France, said Premier Li's speech continued the theme of his speech delivered at last year's Summer Davos - promoting the country's high-quality development and firm commitment to opening-up.

It's reassuring to see continuity in countries including China and within the ecosystem of entrepreneurs, because we live in a world where we perceive many abrupt changes taking place, Ruet told the Global Times on Wednesday.

Driven by the notable strides in advancing innovation-driven development, China's economy has advanced steadily, and demonstrated robust resilience and development potential.

A recent report released by the World Bank showed that China's economy maintained growth momentum in early 2025, and in response to global trade uncertainty, the government has implemented accommodative monetary and fiscal policies. Recently, international institutions, such as J.P. Morgan and Goldman Sachs, have revised up China's growth prospects.

Call for cooperation

As the world economy is confronted with a worsening growth predicament due to the escalation of geopolitical conflicts and policy uncertainty, global leaders from government, business, academia and other fields at the Summer Davos also called for win-win cooperation and close collaboration to deal with challenges.

Robert Koopman, Hurst Senior Professorial Lecturer with the School of International Service of American University, especially highlighted Premier Li's emphasis on global trade and cooperation and coordination.

"I think there's a deeply ingrained understanding of the importance of access to global markets, of access to global technology, and the positive spillovers that come from that kind of access and cooperation," Koopman told the Global Times on Wednesday.

 "This is my first time participating in the Summer Davos, and I'm happy to be here to see the various discussions and collaboration between different governments, public, and business parties from around the world," Hisham Aljadhey, president of Saudi Food & Drug Authority, told the Global Times on Wednesday.

The event provides an important platform for dialogue where governments and businesses are talking about many key economic issues that matter to the world today, seeking understanding and consensus, according to Aljadhey.

Li warns of rising trade barriers



Premier urges nations to reject ‘me first’ economic policies as global strain deepens



Premier Li Qiang warned that global trade tensions were “intensifying” as he addressed the opening ceremony of the World Economic Forum (WEF).

Officials including Singaporean Prime Minister Lawrence Wong are among those attending this week’s gathering in the northern port city of Tianjin, known colloquially as the “Summer Davos”.

Li yesterday said the global economy was “undergoing profound changes” – a thinly veiled reference to swingeing tariffs imposed by US President Donald Trump.

“Protectionist measures are significantly increasing and global economic and trade frictions are intensifying,” Li added.

“The global economy is deeply integrated and no country can grow or prosper alone,” he said.

“In times when the global economy faces difficulties, what we need is not the law of the jungle where the weak fall prey to the strong, but cooperation and mutual success for a win-win outcome.”

Beijing’s number two official also painted a bullish picture of the Chinese economy, the world’s second-largest, which has been beset by slowing growth and a lull in consumer spending.

“China’s economy continues to grow steadily, providing strong support for the accelerated recovery of the global economy,” he said.

Beijing, he added, was “stepping up our efforts to implement the strategy of expanding domestic demand”.

Li said this was “promoting China’s growth into a major consumption powerhouse based on the solid foundation of a major manufacturing powerhouse”.

Beijing is eyeing growth this year of around 5% – a target viewed as ambitious by many economists.

Officials have since late last year rolled out a series of steps intended to boost spending, inclu­ding key interest rate cuts and steps to encourage homebuying.

But results have been varied, just as added pressure on trade from US tariffs threatens to hit the country’s vast manufacturing sector.

Li’s speech at the WEF gathering sought to portray China as a staunch defender of a rules-based international trading system that is now under attack by the Trump administration.

His comments echoed remarks the day before by President Xi Jinping to Singapore’s Wong during a meeting in Beijing in which he called for the countries to resist a “return to hegemony” and protectionism.

Other leaders yesterday shared a sense of unease about being forced to choose between superpowers in a new historical period marked by increasing fragmentation and conflict.

Wong told WEF President and CEO Borge Brende during a public discussion that governments should be cautious about “abandoning the concept of economic integration”.

“Integration cannot guarantee peace, but I think it certainly gives us a better chance for peace than a ‘me first’ approach,” he said.

Vietnamese Prime Minister Pham Minh Chinh struck a similar chord, pointing out that the United States is Vietnam’s largest export market and China its largest source of imports.

When asked about recent trade frictions, Chinh said his country needed to pursue a “balanced” foreign policy that would allow it to be “a friend of all countries”.

“We have a good balance but we also need to be prepared as things have gone topsy-turvy lately,” he added. — AFP

XsEjyJdXZ1KPFwG7a-BcqFZMb9_4AQct5RQOfOvRppUQUFz8-CeORrcNVt4VB0EwcJUJTAR2SipU7Oip2izwf3BlfvTtqhig17Mtcri3SQ-vKrWj3caw_Jg92D7HC9tF7NQuHe8F4_jYqKwN31qdvtZNniUyBCJ_MX4bDvjeYNVDeHmRcVO7CN2Lq2BwqgVk/s1017/Opening%20plenary%20of%202025%20Summer%20Davos%20held%20in%20Tianjin.jpg" style="margin-left: auto; margin-right: auto;">
Guests walk to the venue of the opening plenary of the Summer Davos at the National Convention and Exhibition Center (Tianjin) in north China's Tianjin Municipality, June 25, 2025. The opening plenary of the 16th Annual Meeting of the New Champions, also known as the Summer Davos, was held here on Wednesday.
https://english.news.cn/20250625/56f7c6a90764463d8b14f5183ee50934/c.html 
Guests attending the 16th Annual Meeting of the New Champions (AMNC), also known as the Summer Davos, in North China's Tianjin, exit the venue after opening plenary on June 25, 2025. Photo: Xinhua

Guests attending the 16th Annual Meeting of the New Champions (AMNC), also known as the Summer Davos, in North China's Tianjin, exit the venue after opening plenary on June 25, 2025. Photo: Xinhua


China is confident in and capable of maintaining rapid economic growth, Chinese Premier Li Qiang said Wednesday, vowing that the country will always keep the doors wide open and warmly welcome businesses from all countries to invest and deepen their roots in China.

Li made the remarks when addressing the opening plenary of the 16th Annual Meeting of the New Champions (AMNC), also known as the Summer Davos, in North China's Tianjin.

Themed "Entrepreneurship for a New Era," the event, held from Tuesday to Thursday, is gathering around 1,800 leading figures from more than 90 countries and regions to explore how entrepreneurship and emerging technologies can unlock more dynamic and resilient economies, Xinhua News Agency reported.

President of Ecuador Daniel Noboa, Prime Minister of Singapore Lawrence Wong, Prime Minister of Kyrgyzstan Adylbek Aleshovich Kasymaliev, Prime Minister of Senegal Ousmane Sonko, and Prime Minister of Vietnam Pham Minh Chinh would also attend AMNC this year, according to an earlier announcement of Chinese Foreign Ministry.

"Over the years, no matter how the international environment has changed, China's economy has consistently maintained a good momentum," Li said, noting that China's GDP grew by 5.4 percent in the first quarter of 2025 despite facing significantly heightened external shocks this year.

China's economic development is not about short-term spurts, but sustained progress toward long-term goals, Li added. He also noted that China is moving toward becoming a high-income country as a whole, driven by strong demand for consumption upgrades in the world's second-largest consumer and import market.

Li said China's sustained breakthroughs and advances in innovation will inject fresh vitality into global development, which will accelerate global economic growth, per Xinhua. 

He also called on the international community to take constructive actions in international economic and trade cooperation.

"Constructive actions mean we need to proactively take measures to safeguard free trade and multilateralism and promote the stable development of the world economy," Li said. The premier called for resolving disputes and differences through dialogue.

Li further said China will continue to deepen its integration and connectivity with the world market and strengthen industrial collaboration with various countries. 

Premier Li's speech has drawn broad positive response at the Summer Davos, as many international attendees recognize the achievements of China's high-quality development and major contributions to global trade and economic growth, eyeing greater opportunities from China's massive market and pioneering innovations.

Confidence in economy

During the Summer Davos, World Economic Forum President Borge Brende shared an optimistic outlook on China's economic prospects.

"I'm relatively optimistic for the Chinese economy, both in the medium-term and long-term. China has already diversified, in addition, China is pivoting from manufacturing of goods to more services and digital trade. We are also seeing a lot of new technologies being applied. China is doing very well in artificial intelligence (AI), on robotics," he said, reported Xinhua.

"There has been a 5.4 percent year-on-year growth in China in the first quarter this year, and the premier said key economic indicators continued to improve in the second quarter. Even though there are a lot of challenges, China is able to overcome them. That's very positive," Bassam Al-Ibrahim, a representative from General Retirement and Social Insurance Authority of Qatar, told the Global Times on the sidelines of the forum on Wednesday.

Now, China is probably at the forefront of innovation from all the technological aspects, and innovation is going to be one of the driving forces for China, especially AI, Al-Ibrahim said.

Joel Ruet, president of the Bridge Tank in France, said Premier Li's speech continued the theme of his speech delivered at last year's Summer Davos - promoting the country's high-quality development and firm commitment to opening-up.

It's reassuring to see continuity in countries including China and within the ecosystem of entrepreneurs, because we live in a world where we perceive many abrupt changes taking place, Ruet told the Global Times on Wednesday.

Driven by the notable strides in advancing innovation-driven development, China's economy has advanced steadily, and demonstrated robust resilience and development potential.

A recent report released by the World Bank showed that China's economy maintained growth momentum in early 2025, and in response to global trade uncertainty, the government has implemented accommodative monetary and fiscal policies. Recently, international institutions, such as J.P. Morgan and Goldman Sachs, have revised up China's growth prospects.

Call for cooperation

As the world economy is confronted with a worsening growth predicament due to the escalation of geopolitical conflicts and policy uncertainty, global leaders from government, business, academia and other fields at the Summer Davos also called for win-win cooperation and close collaboration to deal with challenges.

Robert Koopman, Hurst Senior Professorial Lecturer with the School of International Service of American University, especially highlighted Premier Li's emphasis on global trade and cooperation and coordination.

"I think there's a deeply ingrained understanding of the importance of access to global markets, of access to global technology, and the positive spillovers that come from that kind of access and cooperation," Koopman told the Global Times on Wednesday.

 "This is my first time participating in the Summer Davos, and I'm happy to be here to see the various discussions and collaboration between different governments, public, and business parties from around the world," Hisham Aljadhey, president of Saudi Food & Drug Authority, told the Global Times on Wednesday.

The event provides an important platform for dialogue where governments and businesses are talking about many key economic issues that matter to the world today, seeking understanding and consensus, according to Aljadhey.

Li warns of rising trade barriers



Premier urges nations to reject ‘me first’ economic policies as global strain deepens

Premier Li Qiang warned that global trade tensions were “intensifying” as he addressed the opening ceremony of the World Economic Forum (WEF).

Officials including Singaporean Prime Minister Lawrence Wong are among those attending this week’s gathering in the northern port city of Tianjin, known colloquially as the “Summer Davos”.

Li yesterday said the global economy was “undergoing profound changes” – a thinly veiled reference to swingeing tariffs imposed by US President Donald Trump.

“Protectionist measures are significantly increasing and global economic and trade frictions are intensifying,” Li added.

“The global economy is deeply integrated and no country can grow or prosper alone,” he said.

“In times when the global economy faces difficulties, what we need is not the law of the jungle where the weak fall prey to the strong, but cooperation and mutual success for a win-win outcome.”

Beijing’s number two official also painted a bullish picture of the Chinese economy, the world’s second-largest, which has been beset by slowing growth and a lull in consumer spending.

“China’s economy continues to grow steadily, providing strong support for the accelerated recovery of the global economy,” he said.

Beijing, he added, was “stepping up our efforts to implement the strategy of expanding domestic demand”.

Li said this was “promoting China’s growth into a major consumption powerhouse based on the solid foundation of a major manufacturing powerhouse”.

Beijing is eyeing growth this year of around 5% – a target viewed as ambitious by many economists.

Officials have since late last year rolled out a series of steps intended to boost spending, inclu­ding key interest rate cuts and steps to encourage homebuying.

But results have been varied, just as added pressure on trade from US tariffs threatens to hit the country’s vast manufacturing sector.

Li’s speech at the WEF gathering sought to portray China as a staunch defender of a rules-based international trading system that is now under attack by the Trump administration.

His comments echoed remarks the day before by President Xi Jinping to Singapore’s Wong during a meeting in Beijing in which he called for the countries to resist a “return to hegemony” and protectionism.

Other leaders yesterday shared a sense of unease about being forced to choose between superpowers in a new historical period marked by increasing fragmentation and conflict.

Wong told WEF President and CEO Borge Brende during a public discussion that governments should be cautious about “abandoning the concept of economic integration”.

“Integration cannot guarantee peace, but I think it certainly gives us a better chance for peace than a ‘me first’ approach,” he said.

Vietnamese Prime Minister Pham Minh Chinh struck a similar chord, pointing out that the United States is Vietnam’s largest export market and China its largest source of imports.

When asked about recent trade frictions, Chinh said his country needed to pursue a “balanced” foreign policy that would allow it to be “a friend of all countries”.

“We have a good balance but we also need to be prepared as things have gone topsy-turvy lately,” he added. — AFP

Wednesday, June 25, 2025

Official predicts 100 AI breakthroughs

 
Wave of innovation set to change economy

New wave: Signage outside DeepSeek’s office in Beijing. The company’s AI is considered much cheaper to set up than Western competitors. — Reuters

Beijing: China’s advantages in developing artificial intelligence (AI) are about to unleash a wave of innovation that will generate more than 100 DeepSeek-like breakthroughs in the coming 18 months, according to a former top official.

The new software products “will fundamentally change the nature and the tech nature of the whole Chinese economy,” Zhu Min, who was previously a deputy governor of the People’s Bank of China, said during the World Economic Forum in Tianjin yesterday.

Zhu, who also served as the deputy managing director at the International Monetary Fund, sees a transformation made possible by harnessing China’s pool of engineers, massive consumer base and supportive government policies. 

The bullish take on China’s AI future promises no letup in the competition for dominance in cutting-edge technologies with the United States, just as the world’s two biggest economies are also locked in a trade war.

The United States sees China as a key rival in the field of AI, especially after DeepSeek shocked the global tech industry in January with its low-cost but powerful model. 

In addition to efforts to prevent China from securing advanced semiconductor manufacturing equipment, Washington is blocking Chinese companies from acquiring Nvidia Corp’s high-end AI chips for training, citing national security concerns.

Beijing is now pinning its hopes on domestic tech giants like Huawei Technologies Co when it comes to advanced chipmaking. 

The emergence of DeepSeek triggered a rally in China’s tech stocks, fuelling optimism over Chinese competitiveness despite tensions over trade with the Trump administration and economic challenges at home.

Bloomberg Economics estimates the contribution of high-tech to China’s gross domestic product (GDP) climbed to about 15% last year – from near 14% a year earlier – and could exceed 18% in 2026.

Despite a tariff truce negotiated a month ago with the United States, American levies are still at high levels, with a more lasting deal still in question. 

Zhu said the United States will likely see inflation pick up starting in August, as it takes some time for tariffs to feed through to the economy and for companies to use up stockpiles they accumulated before Trump hiked duties. 

“The uncertainty brought by US tariff policy is an important factor that may lead to negative growth in global trade this year,” Zhu told reporters on the sidelines of the forum.

“The entire trade industrial chain has begun to slow, investments has begun to stop, so the impact is greater than the actual tariff rate.”

The World Economic Forum meeting in Tianjin, also known as “Summer Davos”, has attracted global business executives and world leaders. 

Singaporean Prime Minister Lawrence Wong and Vietnamese Prime Minister Pham Minh Chinh are scheduled to speak at the three-day event.

Chinese Premier Li Qiang is expected to address the conference during the opening plenary today and meet with participants.

Despite a tariff truce negotiated a month ago with the United States, American levies are still at high levels, with a more lasting deal still in question.

Analysts polled by Bloomberg forecast GDP will slip to 4.5% this year, significantly below the official target of around 5%. It expanded 5.4% in the first quarter.

“The uncertainty brought by US tariff policy is an important factor that may lead to negative growth in global trade this year,” Zhu told reporters on the sidelines of the forum. “The entire trade industrial chain has begun to slow, investments has begun to stop, so the impact is greater than the actual tariff rate.”

Zhu said the United States will likely see inflation pick up starting in August, as it takes some time for tariffs to feed through to the economy and for companies to use up stockpiles they accumulated before Trump hiked duties.

Despite shocks from abroad, China’s GDP likely grew faster than 5% in the second quarter, according to Huang Yiping, a member of the Chinese central bank’s monetary policy committee. Speaking on another panel at the Tianjin forum, he pointed to the economy’s solid performance in April and May.

But despite strong retail sales in May, when they grew at the fastest pace since December 2023, Huang said China still needs to address the issue of insufficient consumption. — Bloomberg

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Report reveals China's innovation-driven development is gaining steam

A report from China's State Council on Tuesday revealed that the country has made notable strides in advancing innovation-driven development, and that its innovation-driven strategy has been gaining momentum.


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