The Chinese top securities regulator has suspended securities relending starting from Thursday, as part of measures to strengthen counter-cyclical adjustments and maintain stock market stability.

Following the stimulus policy, major stocks in China closed higher at the end of trading, with the benchmark Shanghai Composite Index climbing 1.06 percent to 2,970.39 points. The Shenzhen Component Index rose 1.99 percent to 8,870.36 points, while the ChiNext Index jumped 2.06 percent to 1,685.12 points.

The China Securities Regulatory Commission (CSRC) said on Wednesday that it had approved an application submitted by the China Securities Finance Corp Ltd (CSF) to suspend securities relending, with the suspension taking effect on Thursday.

Existing securities relending contracts can be extended, but they should be settled prior to September 30, the CSRC said in a statement.

Securities relending refers to when the CSF lends its own securities or those raised in accordance with the law to securities companies for them to engage in secondary lending.

The CSRC said it has also approved arrangements to raise margin requirements for short-selling activities from a minimum of 80 percent to 100 percent, while the margin requirements for private equity funds will be raised from a minimum of 100 percent to 120 percent. The regulator said that the new policy will enter force on July 22.

A series of moves taken by the CSRC will help lift investor confidence and maintain the stability of the market amid recent downward pressure, Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Thursday.

In addition to these policies, Yang called for more long-term capitals to enter the A-share market so as to reverse the downward trend of the stock market.

"The stock market is not only a barometer of the macro-economy but could also in turn affects the economy," he said, noting that a sound stock market could contribute more to the development of sci-tech firms and create fortune for investors.

In wake of the CSRC's enhanced regulations in this regard which were first flagged in August 2023, short-selling in China has already declined drastically. The outstanding amount for short trades fell by 64 percent and 75 percent for securities lending, by the end of June this year, according to the government agency.

The latest moves made a necessary adjustment for stock supply and trade mechanism of domestic capital market, as well as responding to market voices, Dong Shaopeng, a senior research fellow from the Chongyang Institute for Financial Studies at the Renmin University of China, told the Global Times on Thursday.

"The moves ignited investor enthusiasm to some extent but the effect is still remains at an early stage. The market's pricing mechanism and financial fraud should be rectified and improved," he said, calling for an earnest implementation of the State Council Nine-Point Guideline.

In April, the State Council released a guideline on strengthening regulation, forestalling risks and promoting the high-quality development of the capital market. This is the third guideline document addressing capital markets issued by the State Council in two decades.

In a concerted effort to fortify the integrity of China's capital markets, authorities have rolled out a robust framework to curb financial fraud and enhance market discipline. For instance, the CSRC is advancing legal work to drastically raise the punishment cap for violations related to illegal information disclosure from 600,000 yuan ($82,565) to 10 million yuan for companies, and from 300,000 yuan to 5 million yuan for individuals.

Amid continued positive macro-economic figures and expectations for measures on further deepening reform and advancing Chinese modernization, international financial institutions are increasingly buoyant on the outlook for Chinese shares.

Yang called for confidence and patience in assessing China's stock market, stressing that the recovery of the Chinese economy is expected to pick up speed in the second half of the year which will drive a rebound in the stock market.

On the evening of July 16, staff from State Grid Changzhou Electric Power Supply Company visited Guilin village in Tianmu Lake town, Liyang city, Jiangsu Province, to inspect electricity usage and upgrade power lines during the “Bonfire Music Salon” event.

Guilin village, situated between the Shahe Reservoir and Daxi Reservoir, serves as a prime area for Liyang’s all-for-one tourism development. In recent years, the State Grid Changzhou Electric Power Supply Company has actively supported China’s rural revitalization by accelerating the grid upgrades in Guilin village and providing tailored power supply solutions for its pursuit of low-carbon and green development.

In 2017, the Liyang Municipal Government proposed an all-for-one tourism development strategy, and Guilin village took the chance, emerging as a pivotal node along its development axis, Liyang No.1 Highway. State Grid Changzhou Electric Power Supply Company, following the rural revitalization initiative, has offered the village special grid transformation plans and upgraded service lines and power supply equipment to facilitate its transition into a beautiful and harmonious countryside spot. Additionally, Jiangsu’s first “Digital Smart Power Distribution Area” was established through comprehensive upgrades to transformers, distribution cabinets, and residential meter boxes. This enabled real-time monitoring of power quality, branch circuit losses, and incidents such as fires and water ingress within meter boxes.

Moreover, tea, as a pivotal industry in Guilin village, is impossible to overlook. In 2022, to meet the electricity demands of the all-electric tea-making process, staff from the State Grid Changzhou Electric Power Supply Company visited tea farmers to develop customized plans. This effort coincided with Changzhou’s implementation of power supply measures that benefited the public, leading to the installation of over 60 new transformers and the upgrade of more than 20 kilometers of power lines surrounding the village’s tea fields. Last year, the company also introduced mobile energy storage and power tracking technology to address electricity challenges during peak tea-making seasons for local farmers.

With the rapid growth across various sectors, the 22-square-kilometer Guilin village now hosts over 120 distinctive homestays, agritourism spots, and family farms. In November 2023, the upcoming Dream World planned to electrify its kitchen facilities. Leveraging the electricity service convenience points under the “village network co-construction” program, State Grid Changzhou Electric Power Supply Company secured worry-free and efficient upgrades for the tea house through one-stop services and technical support.

This year, the State Grid Changzhou Electric Power Supply Company has designated Guilin village as a demonstration site to develop the “wind-PV-storage-charging” intelligent microgrid. Additionally, wind power generation, distributed PV, shared energy storage, and other advanced energy-consuming equipment will be applied in the village, injecting stronger green power into its development.

Three Chinese photovoltaic (PV) giants including JinkoSolar Co and TCL Zhonghuan Renewable Energy Technology Co announced big business deals on Tuesday, the same day that two exchange-traded funds (ETFs) tracking large Saudi companies debuting on the China’s A-share market, highlighting the strengthening trade and financial cooperation between China and the Middle East.

On Tuesday, JinkoSolar announced that its wholly-owned subsidiary JinkoSolar Middle East DMCC signed a contract with Renewable Energy Localization Company (RELC), the wholly-owned subsidiary of the Saudi Public Investment Fund and Vision Industries Company (VI) to establish a joint venture (JV) in Saudi Arabia to build a 10-gigawatt (GW) high-efficiency photovoltaic module project there.

The total investment in the project reaches approximately $985 million, with JinkoSolar Middle East and RELC holding 40 percent, and VI holding 20 percent of the company’s shares. JinkoSolar said that it will provide IP licensing, research and development, sales and marketing services as part of the agreement.

On the same day, TCL Zhonghuan announced plans to build a factory in Saudi Arabia, and will sign an agreement with the VI and RELC to set up a JV company, jointly building an annual output of 20GW PV crystal wafer project in the country.

The total investment in the project is expected to be approximately $2.08 billion. TCL Zhonghuan, through its wholly owned subsidiary in Singapore, holds 40 percent of the company’s shares.

RELC and VI will support the JV in obtaining the relevant licenses and approvals required for operations in Saudi Arabia, assisting the project in obtaining competitive support from the local government, while TCL Zhonghuan will license the required intellectual property rights and know-how to the JV and ensure that the construction of the plant will be completed on time.

Moreover, another Chinese PV giant, Sungrow, announced on Tuesday that the company and Saudi Arabia’s ALGIHAZ successfully signed the world’s largest energy storage project, with a capacity of up to 7.8 GWh.

The project will start product delivery this year, and the full-capacity grid-connected operation will be completed in 2025, which will effectively improve the stability and reliability of Saudi Arabia’s national grid, and help realize its “Vision 2030” plan.

Two ETFs tracking large Saudi companies, including Saudi Aramco, made successful debuts on the Chinese A-share market on Tuesday, and their values rose by the daily limit of 10 percent, with a premium of more than 6 percent.

According to statistics from Wind, a Chinese financial data provider, the total turnover of the two ETFs reached 4.896 billion yuan ($673.6 million) on the first day of trading. The two ETFs extended gains to open higher on Wednesday, with one rising to hit the daily limit of 10 percent and the other opening at 8 percent higher.

A recent online video showing people dressed as savages interacting with tourists at a scenic area in Benxi, Northeast China's Liaoning Province, earning 200 yuan ($27.5) a day, has sparked heated debate among Chinese netizens, with many asking in the comments how to apply for the job.

In the video, several people dressed as savages repeatedly slap their hands on their lips, make strange noises, and interact with tourists in various ways. 

According to media reports on Sunday, after posting a job announcement in April, nearly 100 people applied within a week, with only four eventually landing a job, aged between 19 and 28.

The person in charge of the recruitment said that hundreds of people called the scenic area to enquire about the opening. The original purpose of creating the position was to help tourists de-stress, and the requirement for "wild people" is just interaction in a fun way, and not to talk, according to media reports.

The actors work from 10 am-3 pm with lunch included, according to media reports, the staff also confirmed the position came with a monthly salary of 5,000 yuan, with many netizens commenting that "this is the ideal job for me to relieve my stress and also get paid."

However, the staff added that each actor had undergone rigorous training, and that the online rumor that the actors were allowed to steal visitors' lunch was untrue.

A Shaolin kung fu festival opened in the Shaolin Temple in Central China’s Henan Province on Saturday, gathering over a hundred of participants to compete for the global kung fu star title, while exchanging cultures and making friends.

Over this weekend, 144 martial art masters from 47 countries and regions will compete in the finals of the 2024 Shaolin Games, contending for the title of “2024 World Shaolin Kung Fu Star.”

The games in the following days will include ranking matches, advancement matches, and the final round, with competition events including Shaolin boxing techniques and Shaolin weaponry, the Global Times learned from the temple.

“The Shaolin Games finals are not about competition of winning or losing, nor a contest of victory or defeat, but moments of life awakening, team development, and the inheritance and enrichment of the Shaolin spirit,” said the abbot of the Shaolin Temple, Shi Yongxin, in a statement, expressing his hope that the event will “foster cross-cultural exchanges, enhance mutual appreciation of civilizations, and contribute to the well-being, health, and peace of humanity.”

Selay Marius Kouassi, a participant from Côte d’Ivoire who is also leading the Team Africa over this year’s Games, told the Global Times that, “I’m very happy to be part of the global community – not just a local, regional, or national community, but a global one. Shaolin has united us as one big family all over the world. I especially love the Chinese wisdom that says ‘Tian Xia Yi Jia’ – the concept that the whole world is one family. This is truly who we are, and it is because of Shaolin kung fu.”

In 2023, the Shaolin Temple completed the continental kung fu competitions across six continents in one year. Tens of thousands of Shaolin kung fu practitioners of different races, colors, and ages participated, with competitors from 101 countries gathering in Zambia, Singapore, Argentina, the US, Italy, and Australia to compete.

During the Shaolin Games finals, various events will also be held at the Shaolin Temple, including overseas Shaolin kung fu performances and a conference on the transmission and innovation of Shaolin kung fu’s intangible cultural heritage, providing visitors with opportunities to experience and study Shaolin culture.

The Shaolin Temple, located on Songshan Mountain of Dengfeng city, Henan, is one of the world’s most famous Buddhist temples. It was first established in 495 AD by Emperor Xiaowen of the Northern Wei Dynasty (386–534) to accommodate the Indian monk Batuo.

The Shaolin Temple is now renowned for its long history, profound cultural heritage, unique Buddhist culture, and martial art traditions. It is not only a treasure of Chinese Buddhist culture but also an important part of the world’s cultural heritage.

According to incomplete statistics, there are about 100 million different Shaolin disciples, Shaolin culture enthusiasts, and practitioners of Shaolin kung fu worldwide, and among which approximately 60 million are located overseas, as reported by the China News Service.

China voiced strong opposition and lodged stern representations on Thursday with NATO after the Cold War mentality-driven bloc issued a direct warning to China for the first time regarding the so-called support to Russia in the Ukraine crisis, which, some experts said, is essentially another attempt to shift the blame and smear China.

The NATO Washington Summit Declaration exaggerates tensions in the Asia-Pacific region, which is filled with Cold War mentality and belligerent rhetoric, containing prejudiced, defamatory, and provocative content regarding China, the Chinese Foreign Ministry spokesperson Lin Jian said during a press conference on Thursday.

NATO's so-called security comes at the expense of others' security, and much of the security anxiety NATO peddles is of its own making. The so-called success and strength NATO boasts of pose a significant threat to the world, the spokesperson said.

Establishing imaginary enemies to maintain existence and expand power is NATO's usual tactic. Its persistence in the erroneous positioning of China as a systemic challenge and smearing of China's domestic and foreign policies are exactly that, the spokesperson added.

The Chinese Mission to the EU also refuted NATO's claims on Thursday, emphasizing that China's position on Ukraine is open and above board, and it is known to all that China is not the architect of the Ukraine crisis. China aims to promote peace talks and seek political settlement, and this position is endorsed and commended by the broader global community.

After decades of viewing China as a distant threat, NATO on Wednesday accused Beijing of becoming "a decisive enabler of Russia's war against Ukraine," and demanded that it halt shipments of "weapons components" and other technology critical to the rebuilding of the Russian military, the New York Times reported.

The US media also called the statement "a major departure for NATO," which until 2019 never officially mentioned China as a concern, and then only in the blandest of language.

"I think the message sent from NATO from this summit is very strong and very clear, and we are clearly defining China's responsibility when it comes to enabling Russia's war," NATO secretary general Jens Stoltenberg was quoted as saying in a report by The Guardian. Stoltenberg also called the statement an important message.

"NATO's shift in rhetoric toward China is partly driven by the US and partly due to NATO's own difficulties as it is struggling with the Ukraine issue, and the more they struggle, the more they look for excuses," Lü Xiang, a research fellow at the Chinese Academy of Social Sciences, told the Global Times on Thursday.

From the beginning, the US and NATO's narrative was that Russia would fail quickly, and they have been talking about launching a counteroffensive, whose effects we have not seen, Lü said, noting that as the conflict drags on, "they need to find an excuse, and the ready-made excuse now is that China is supporting Russia, backing it from behind."

Baseless accusation

Besides NATO's accusation against China on the Ukraine crisis, the US Secretary of State Antony Blinken claimed at a public forum at the NATO summit that China is being "the major contributor to Russia's defense industrial base." The Chinese Foreign Ministry also voiced strong opposition, saying that the US has been spreading false information.

"Most countries have not participated in sanctions against Russia or cut off trade with it, so the US cannot blame China for its own actions. The US has passed large-scale aid bills for Ukraine while baselessly accusing China and Russia of normal economic and trade exchanges. This is blatant hypocrisy and double standards," Lin said.

The China-Russia cooperation is important as it acts as a balance force against the reckless actions of the US and the West, ensuring the world operates fairly and orderly, Cui Heng, a scholar from the Shanghai-based China National Institute for SCO International Exchange and Judicial Cooperation, told the Global Times on Thursday.

"The China-Russia cooperation is mainly in energy production chains and agricultural sectors, which is normal cooperation. The US-led West severed its cooperation with Russia while forcing others to do the same, which only demonstrates its arrogance, narrow-minded and self-centered mindset," the expert added.

Some experts also pointed out that NATO is essentially a military alliance that maintains its functionality and reinforces its existence through crises, conflicts, and even wars. The recent escalation in NATO's rhetoric toward China indicates that NATO is eager to achieve a globalized functional and institutional framework with global influence.

They are attempting to achieve NATO's globalization by hyping the so-called "China threat" and inciting challenges against China, Li Haidong, a professor at the China Foreign Affairs University, told the Global Times on Thursday.

The more they talk about China and the more aggressive their rhetoric, the more it indicates that NATO is using the China issue to showcase its role in the Asia-Pacific region and globally, Li noted.

"The hype and intensification of the China issue serve as a catalyst for NATO to accelerate and strengthen its presence, influence, and actions globally, especially in the Asia-Pacific region," the expert said.

Washington's strategic tool

Although the US President Joe Biden did not name China in his address at the NATO Summit, experts believe that the escalated rhetoric of the bloc toward China was pushed by Washington as NATO has been serving as a strategic tool for the US.

Such a NATO will inevitably be pushed by the US onto the track of the US-planned global strategic competition with China, therefore, the increase in NATO's current rhetoric and foreseeable actions against China is being orchestrated under the US' direction, Li noted.

"Also, by pulling NATO into the Asia-Pacific region to engage in geopolitical competition against China, the US is likely to adopt a strategy of 'gathering allies to confront opponents' or forcing parties to take side," the expert said.

NATO forges closer ties with Asia partners to counter China, some US media reports said, and White House national security adviser Jake Sullivan was quoted as saying in a Fox News report that NATO allies and the Indo-Pacific partners will launch four new joint projects, which will be on Ukraine, artificial intelligence, disinformation and cybersecurity.

However, some experts said the likelihood of European military forces being projected into the Pacific remains quite low.

"Many European countries within NATO do not share the same view as the US. While NATO may issue strongly worded statements against China, truly pivoting to contain China is something NATO is neither capable of nor likely to achieve," a Beijing-based military expert who preferred not to be named told the Global Times on Thursday.

"Finally, we can apply for permit like other Hong Kong residents," Will Bedoucha, a business consultant, told the Global Times on Wednesday on the first day non-Chinese residents in Hong Kong could apply for a new travel permit to go to the Chinese mainland.

Starting from July 10, 2024, non-Chinese permanent residents of Hong Kong and Macao are eligible for a card-type mainland travel permit, to enhance convenience of clearance at entry points of the mainland, facilitating their visit to the mainland for business, traveling and visiting relatives.

Holders of the permit can travel to the mainland multiple times within the five-year validity period of the permit, with each stay not exceeding 90 days, China's National Immigration Administration announced on July 1.

The South China Morning Post reported that slots at a Hong Kong Island center offering registration for the new travel permit are booked out for the first three weeks after the policy was launched.

Foreigners living in Hong Kong hailed the new policy when talking with the Global Times on Wednesday. Bedoucha, a French passport holder who was born and raised in Hong Kong, said he applied for the document "the very day the news was launched."

"I travel once every two weeks to Shenzhen just for shopping and dining. It's so easy to go there as it's a good little break from the city and I live 15 minutes away from Shenzhen," he said.

"I carry a French passport and so I was not eligible for the Home Return Permit as I was not born Chinese. Unlike those with Chinese backgrounds, we previously couldn't apply for permits," he said, noting that crossing the border with a passport can take more than 40 minutes to an hour.

A Canadian living in Hong Kong since 2000 said he is going to apply for the permit. "My wife is Chinese, and I have many friends in the mainland and I go there almost every month," he told the Global Times. He said he also believes the integration of the Greater Bay Area is accelerating.

He noted that the application process should be smooth. "I suspect that there might be too many people applying at this moment so I will wait a bit for it to calm down."

Some business tycoons also showed up on Wednesday at the China Travel Service center for applying the permit, Ming Pao reported.

Sino Group chairman Robert Ng Chee Siong, who has Singaporean nationality, along with his children, applied for the permit this morning. He was quoted as saying in the media report after applying that the measure would bring great benefits to Hong Kong, demonstrating the country's strong support for the city under One Country, Two Systems.

The new policies facilitate non-Chinese permanent residents of both SARs to explore opportunities in the mainland, especially Beijing, Shanghai and South China's Guangdong Province. They may devote themselves to engaging in business, innovation, entrepreneurship, partnerships and pursuing studies, Chu Kar-kin, a veteran current affairs commentator and deputy secretary-general of the Hong Kong Association for Promotion of Peaceful Reunification of China, told the Global Times on Wednesday.

They may also consider China as their second home and input capital, patents, talent, workmanship, technology and overseas networks to the country, Chu said.

Government figures show that in the first half of 2024, China received 14.635 million foreign travelers, up 152.7 percent year-on-year, the Chinese Foreign Ministry spokesperson Lin Jian told at a press conference on Tuesday.

Among them, 8.542 million entered China visa-free, up 190.1 percent year-on-year. As more and more countries benefit from the visa-free policy and as China adopts more measures to ease cross-border travel, "on-a-whim travel" to China is becoming a reality, Lin said.

Competent government agency expects more foreigners to travel to China in the second half of this year. The "China travel" boom stems from China's unique charm, and more importantly, an open and inclusive Chinese society, and the warm and hospitable Chinese people. It is also the result of China's high-standard opening up, the spokesperson said.

The Swiss global financial group Cedrus Group announced the establishment of the QFLP Fund on Tuesday to focus on investing in mature, pre-IPO stage companies in the life sciences and agriculture sectors in China, and establishing joint ventures with foreign companies seeking to enter the Chinese market. 

Chairman of Cedrus Group, Rani Jarkas, said that the launch of the fund is a major milestone for the group, and proves that an international financial group like Cedrus is highly committed to China.

The fund will complete the group's ecosystem in life sciences and will enable the company to play an even more active role in the development of highly innovative biotech and pharmaceutic companies in China, by adding a focused capital pool supporting these initiatives, Jarkas noted. 

In addition, it will boost their capabilities to attract highly relevant foreign technology into China, through joint ventures or wholly owned foreign entities, which in turn, will create highly skilled jobs in healthcare and increase local government tax revenues, he said.

The move was announced at the Cedrus Life Sciences Investment Forum in Beijing on Tuesday. Fifty industrial experts were invited to the forum to discuss and offer advice to promote the development of the life science industry. Wei Jianguo, former vice minister of China's Ministry of Commerce, attended the forum and delivered a keynote speech. 

Xia Qinglin, secretary of the work committee of the Party Committee of the Tianjin Binhai Hi-Tech Industrial Development Area and general director of the administrative commission of the area, introduced the area's favorable policies for bio-investment companies, the current scale and layout of biotechnology companies, and the agglomeration effect the area had created through cooperation with Cedrus. 

Relying on the Haihe Laboratory of Cell Ecosystem, the Tianjin Binhai Hi-Tech Industrial Development Area enhanced efforts to improve the level of the local biomedical industry. 

The area issued "double nine policies" to further support the accelerated development of the biomedical industry, to help build the area into a world-class and domestically leading source of basic research and a gathering place for scientific and technological innovation. 

Currently, there are more than 204 city-level and above research and development institutions in the Tianjin Binhai Hi-Tech Industrial Development Area. Among them, more than 30 are at the national level. These institutions have helped to attract talent and created a cluster effect for the area, Wang told the Global Times. 

"For a development region like ours, both our industry and technology must be internationalized. We must constantly connect with international resources to promote our companies to go global while also introducing international companies into our area. After all, technology can only develop through exchanges and mutual learning. This is not only to promote the development of enterprises but also to promote the development of various countries to better serve people's lives and health," Xia said. 

Xiong Juan, chairwoman of the Hainan Leyun Biotechnology Co, Ltd, also shared her opinions on the challenges and opportunities facing Chinese companies on the path of internationalization. 

"We are mainly in the scientific research transformation period in China. As a Chinese life sciences company, we not only want to promote our products in this market in China but also want to go out to Southeast Asia and also to Europe. But as our overseas resources and visibility overseas are limited, so we need an international platform like Cedrus to help combine external resources," Xiong said. 

Recently, US officials have accused Chinese industry of overcapacity, particularly in sectors like electric vehicles (EVs), solar panels, and semiconductors. They argue that China's low-priced products threaten industries in the US.

However, a closer examination from the perspective of technological cycles, industrial organizational structure evolution, and the role of industrial policies reveals a reality that contradicts the US officials' ridiculous claim.

Critics often attribute China's competitive edge in new-energy products to overcapacity, pointing to the low prices of Chinese manufactured goods. Yet, this oversimplification ignores the complexities of technological progress and industrial dynamics. Historically, constant tech advancements have led to cost reductions and improved affordability for ordinary consumers.

China's edge in new-energy technology and Chinese EVs' relatively low market share overseas suggest that the price advantage is driven by homegrown innovation while not overcapacity.

Moreover, China's leading position in patents for key technologies like solid-state batteries underscores its technological prowess. While some argue that "China is flooding international markets with cheap products," the reality is different.

For instance, Chinese new-energy vehicles (NEVs) are often priced higher overseas than domestically, for example, the BYD Seal is priced at 180,000 yuan ($24,880) in China, approximately 370,000 yuan in the Netherlands, and 411,800 yuan in the UK, indicating that pricing strategies are not solely dictated by oversupply but also by market dynamics and production efficiency.

Hence, the competitive pricing of China's new-energy products stems not merely from sufficient supply, but rather from overcoming technological barriers through diligent research and development, constant enhancement of product performance to lower costs, and optimizing production efficiency across the entire industrial chain.

Another criticism leveled against China is the prevalence of loss-making manufacturers, which some attribute to government support and a refusal to allow companies to exit the market. However, this isn't telling the truth. Losses in high-tech industries during the early stages of development are not uncommon, as companies often require significant investment in research and development.

For example, Amazon was founded in 1995, but it did not become profitable until 2015, according to media reports. Tesla was established in 2003, but it did not make a profit until 2020. In particular, Tesla was once on the verge of bankruptcy because of its inability to mass produce. The survival of these companies depends on their ability to attract capital and their competitiveness in the market.

While some NEV ventures in China have indeed experienced losses, market forces determine their fate. Companies with competitive products can attract funding and continue to operate, while others may exit the market due to lack of competitiveness. In the past four years, 12 NEV companies in China have closed down, including WM Motor and AIWAYS. Rather than being solely attributed to overcapacity, the ability of loss-making companies to survive and eventually thrive is a testament to the investors' belief in the industry's potential and the companies' ability to deliver on that promise.

Critics also point to China's industrial policies as a factor contributing to "overcapacity." However, a comparison with industrial policies in developed countries tells a different story. Moderate policy support is not indicative of overcapacity but rather reflects a strategic approach to nurturing emerging industries. Industrial policy has played a crucial role in driving innovation and fostering economic transformation in developed countries.

For instance, the US government's support for the domestic semiconductor industry in the 1950s and South Korea's protection of its local semiconductor chip industry in the 1990s demonstrate the positive impact of government policy interventions.

In recent years, the US has implemented subsidy policies aimed at promoting the adoption of NEVs. However, the outcomes of these initiatives have been less than satisfactory.

For instance, under the US Inflation Reduction Act, EVs assembled exclusively in North America were eligible for a maximum subsidy of $7,500 in tax deductions. Despite this incentive, major companies such as Apple and Ford have shelved their plans for all-electric vehicles. Even with government subsidies in place, many American firms struggle to keep pace in the competitive landscape of the NEV industry.

Overall, the industrial policies of China's new-energy development have been very successful. The Chinese government has not only proactively and effectively laid out the new-energy industry, but also gradually reduced policy support after nurturing a large number of enterprises, accelerating the survival of the fittest for new-energy enterprises.

The accusations of "overcapacity" in China's new-energy industries are misguided and oversimplified. China's success in the industries is not the result of overcapacity but rather of strategic investment in technology, innovation, and market-driven policies. Rather than blaming China for its competitiveness, a more constructive approach would involve understanding and leveraging global market dynamics to foster cooperation and innovation in the new-energy sector.

Editor's Note:

China Rural Revitalization magazine has published a series of articles on the rapid development of rural areas in China with new transformations. The articles reflect the arduous efforts of rural revitalization across China, which is an important and genuine solution to China's rural economic development. In the future, articles selected from this series will be published.
Maozhushan village, located in Nanyi village, Caiwan town of Guilin in South China's Guangxi Zhuang Autonomous Region, is a natural village with only 46 households and 156 residents. The village, although named for the mountains and hills of moso bamboo, is known far and wide for the development of its local grape industry for over 20 years.

In 2002, grapes were first grown in Maozhushan, a once-impoverished village covering an area of 60 hectares. Many young villagers who moved to big cities as migrant workers gradually returned to their home village and were employed in the grape industry.

In April 2021, when Chinese President Xi Jinping paid a formal visit to Guangxi, he stopped at Maozhushan village.

Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, inspected the local grape-growing industry and called for greater efforts to pursue rural vitalization based on local specialty industries to make better use of science and technology in promoting the agricultural sector.

He also stressed measures that can ensure farmers to benefit more from the development of rural industries.

Xi walked through the village, dropping by the home of villager Wang Deli and chatting with the family.

He said that as the CPC is about to celebrate its centennial in 2021, China has scored a complete victory in its fight against poverty. However, he said promoting rural vitalization on all fronts will be no easier than the battle to fight poverty, allowing no letup or sluggishness.

Tech empowerment

"We planted a total of more than 320 mu (21.3 hectares) of grapes, with 192 mu of grape varieties improved. After the improvement, the retail price of grapes per jin (0.5 kilogram) increased by 3-5 yuan ($0.69)," said Wang Hairong, head of the local grape planting association.

In discussing new varieties and technologies used by the village's grape industry in the past few years, Wang has strong opinions.

"We also standardized the grape planting base, converting the old simple sheds into greenhouses with steel frame structure. In addition, we have promoted the application of organic cultivation, drip irrigation and water-fertilizer integration and other technologies, which has not only saved water and fertilizer, but also reduced costs," Wang noted.

Wang stressed that the village set up a 5G intelligent agricultural system - the Maozhushan grape industry digital platform. The platform not only aimed at the scientific management and care of grapes to provide timely and effective data support, but also has significantly reduced the incidence of grape pests and diseases as well as improved the quality of grapes.

"The average yield increase reached nearly 500 jin per mu," Wang said.

In addition to the "hard technology," Maozhushan village also pays special attention to the "soft power" of enhancing the scientific planting of grapes. Over recent years, the village has worked with several Guangxi agricultural research institutions to better promote the development of local grape growing.

The majority of agricultural experts and technicians not only go into the field to guide the adoption of key technologies of grape planting, but also give their opinions and suggestions from the introduction of products, equipment supply to orders for the acquisition.

Pristine water & hills

Noting the changes that have occurred to the environment of Maozhushan village, Wang Junrong, Party chief of Nanyi village, said that over the recent years, local authorities have earnestly practiced the concept of "lucid waters and lush mountains are as invaluable as silver and gold," vigorously implementing a number of infrastructure renewal projects.

In addressing the Maozhushan village environment, Wu Yecheng, an official from the Caiwan town government, was involved in the entire infrastructure upgrading and renovation projects.

According to Wu, Maozhushan village has built a cultural center, a basketball court, a theater, and completed 3.5 kilometers of road widening project as well as 2,200 square meters of parking lot construction and rainwater and sewage separation project.

In addition, the local township government carried out a comprehensive soil and water conservation management project in small watersheds, successfully transforming two weirs and one waterwheel, and comprehensively managed an area of 37.14 square kilometers to protect against soil erosion.

The projects have greatly improved the local environment, with water diversion and irrigation as well as flood discharge and flood relief capacity comprehensively upgraded, said Wu.

In addition, Maozhushan village has also completed the intelligent transformation of a high-standard power grid, providing electric power support for the wider use of drip irrigation technologies for the grape planting bases, so that the local grape industry has withstood the test of the summer and autumn drought in northern Guilin in 2022, with the grape yield increased that year.

The local government has also coordinated with the local telecom company to realize the full coverage of the mobile signal across the village, in a bid to strengthen the timely, fast and accurate communication between the village and the outside world.

In 2022, the theatrical movie My Hometown Maozhushan was filmed in the village, greatly enhancing its popularity and influence.