The “three requirements” that India government is reportedly asking of Chinese smartphone makers operating in the Indian market, are not something that a country governed by the rule of law or a market-oriented economy would do, industry analysts said.

According to India’s Economic Times, the Indian government wants Chinese smartphone companies to appoint Indian nationals to run the management and administration of local plants. New Delhi also wants the companies to appoint Indian distributors to localize their distribution structure in India. Starting next month, Vivo will replace its agents in some states of India with Indian distributors, according to local media reports.

The third requirement is for Chinese companies to use local contract manufacturers. According to a recent report of the Economic Times, Oppo, Vivo, and Realme have started, or are in the process of starting, smartphone manufacturing with Indian contract manufacturers.

A source familiar with the situation in India told the Global Times that Chinese smartphone brands are shifting their production to local Indian companies. "Changing distributors to Indian companies should also be true," the source said.

Another industry expert, who spoke on condition of anonymity, told Global Times that Chinese smartphone companies are seeking to make India an important production and export hub in order to expand their exports to neighboring countries and continue to maintain their overseas market advantage.

"This may be why the Indian government is confident that these Chinese companies will accept New Delhi’s so-called localization demands," the insider noted.

The Indian government has been cracking down on Chinese smartphone makers, citing allegations of tax evasion and money laundering. They are also making stringent demands on many Chinese companies.

In June, Chinese smartphone makers were asked to appoint Indian nationals to hold positions including the chief executive officer, chief operating officer, chief financial officer, and chief technical officer, the Business Standard reported.

The Indian government's crackdown on foreign companies, including Chinese companies, shows a clear intention to achieve localization, or put it more concisely, is a government-led “robbery” out of foreign enterprises, Lin Minwang, a research fellow at the Center for South Asian Studies, Institute of International Studies at Fudan University, told the Global Times.

"This short-sighted approach will ultimately undermine India's economic openness and the image of the Modi government's commitment to economic development," Lin said.

Real estate companies that are seriously insolvent should be handled according to market-based principles and rule of law, either subject to bankruptcy or restructuring as appropriate, China's housing minister said on Saturday, pledging measures to promote the stable and healthy development of the real estate market.

Although the task of stabilizing the real estate market remains challenging, there is still great potential and room for growth in China's real estate sector. Development of the real estate market should be viewed from a medium and long term perspective, rather than short term perspective, Ni Hong, minister of housing and urban-rural development, told a press conference on Saturday during the ongoing two sessions.

"We believe that as long as we have confidence, respect the rules, and persist in solving problems as they arise, we can promote the stable and healthy development of the real estate market," Ni said.

This year's Government Work Report noted that China will refine real estate policies and meet justified financing demands of real estate enterprises under various forms of ownership on an equal basis, so as to promote the steady and healthy development of the real estate market.

Regarding measures to ensure stable and healthy development of the real estate sector, Ni emphasized focusing on stabilizing the market with city-specific policies, defusing risks, and promoting transformation of the sector.

In defusing risks, the financing needs, a prominent issue facing real estate enterprises, of all companies of different ownership types will be supported equally, Ni noted.

To meet the reasonable financing needs of real estate companies, a whitelist coordinating mechanism has been established covering 312 prefecture-level cities and above across China, Ni briefed.

From the reported whitelist projects, more than 6,000 have been completed, with 82 percent of these projects by privately-owned enterprises and mixed-ownership enterprises. As of the end of February, the approved loans through commercial banks have exceeded 200 billion yuan, according to Ni.

While pledging measures to meet the rational funding needs of real estate companies, the minister also emphasized the importance of continuing to strengthen supervision.

In 2023, faced with the individual real estate companies' funding chain breaking, the real estate market adjustment and other challenges, the ministry, together with relevant departments, have introduced a series of policy measures, securing the bottom line of preventing systemic risks, Ni said.

For behaviors from housing developers that harm the interests of the public, they should be resolutely investigated and punished according to law, making them pay the due price, the minister stressed.

The threshold for China's individual income tax exemption should be raised to ease pressure on middle- and low-income earners and propel domestic consumption and economic recovery, according to Dong Mingzhu, a prominent entrepreneur and deputy to the National People's Congress (NPC).

The current monthly individual income tax cutoff point is 5,000 yuan ($694.6), enacted in 2019. Dong's motion suggests it be raised to 8,000 yuan or 10,000 yuan.

Dong, chairwoman of Chinese home appliance giant Gree Electric Appliances, has been calling for raising of the individual income tax threshold for many years, while also optimizing the progressive tax rates, in order to extend more tax reduction benefits to the low and middle-income groups.

During a recent media interview with the Southern Metropolis Daily, Dong reiterated that she will continue to ask for raising the individual income tax threshold at the NPC session this year, given the cutoff point remaining at 5,000 yuan for many years. "Now it's high time the threshold needs to be hiked," Dong said.

Dong has been elected as an NPC deputy for five consecutive terms, ever since 2003. Data reveals that her past motions proposed during the annual two sessions have consistently focused on raising the individual income tax threshold.

Zhang Xuewu, another NPC deputy and chairman of Yanjin Shop Food Co, took the side of Dong by putting forward a motion asking the individual income tax threshold be raised to 8,000 yuan to increase household income for ordinary people while boosting broad consumer confidence in the country.

"In 2024, sustaining economic recovery hinges on restoring and expanding consumer demand, which entails implementing effective measures to ramp up residents' disposable income and their confidence to consume," Zhang said.

Their motions have triggered heated debate among netizens, and raising individual income tax threshold has quickly been trending on Weibo, China's social media platform, gaining over 62,000 likes and 3,400 comments as of press time.

There is a groundswell of support for the motions among Chinese netizens, who uttered that raising income tax threshold is necessary and imperative which will greatly benefit low-income groups and help them cope with life burden.

Editor's Note: While China's economy is undergoing a crucial transformation and upgrade amid the current complex international environment, Western propaganda machines persist in attempting to undermine China's economic progress by creating biased and inaccurate narratives. To counter these false claims, the Global Times is publishing a series of articles that unveil the reality of China's consistent economic development.

During the upcoming two sessions, China is expected to announce this year's targets for GDP growth, as well as consumer prices, employment and other economic metrics. Taking into account the goals announced at recent provincial-level two sessions, it is anticipated that China's 2024 economic growth target may be set at about 5 percent.

The potential growth rate of the Chinese economy is estimated to be 5.5 percent. In my opinion, setting the target at 5-5.5 percent and striving to reach the potential growth rate will be more conducive to fully utilizing economic resources. 

In the long run, a higher economic growth target for 2024 will also prepare China to achieve its long-term objectives through 2035. To achieve these long-range visions, an average annual growth rate of 4.7 percent is needed. In the past few years, due to factors such as the COVID-19 pandemic, the country's average growth rate did not reach this level. Until 2030, the annual growth rate should exceed 5 percent.

A higher economic growth target will also boost market sentiment. Setting this year's GDP growth rate at higher than the 5.2 percent actual rise for 2023, will send a clear signal that the priority this year is stabilizing economic growth.

During the two sessions, China is expected to announce its fiscal deficit ratio too. Regarding macroeconomic policies, China has repeatedly stated that it will not adopt a deluge of strong stimulus measures like some Western countries. China has learned from the negative impacts of excessively loose monetary policies in Europe and the US. In order to avoid debt expansion and high inflation, China is unlikely to implement the kind of large-scale stimulus measures seen in Europe and the US.

China will introduce more stimulus plans to boost economy, but these are expected to be more targeted and precise. China's monetary policy has always pivoted on precision in implementation, so the pace of reserve requirement ratio cuts has been relatively measured. 

As for fiscal policy, it is expected that the scale of local special-purpose bonds will remain the same as last year, while the central government may slightly raise the deficit ratio. It is generously believed that a deficit ratio of 3.5 percent is more plausible.

The fundamentals of the economy are sound. Some foreign China watchers who make pessimistic comments about China's long-term economic growth do so without any basis. The growth potential of the Chinese economy is still very significant.

When Western media outlets hype the "confidence collapse theory" or "peak theory" about China's economic development, their major arguments interpret short-term phenomena as long-term ones. Because China's economy has encountered some setbacks in recent years, they tend to see these phenomena as long-term trends, which is actually a common mistake made by many observers.

Western media outlets' hype about the "collapse of confidence" exaggerates the impact of the technological and economic crackdown by the US on China. In reality, it is still a form of US-centric thinking. 

Such claims hype the idea that if American capital and technology are not allowed to come to the Chinese market, China's economic prospects are dim. Given the immense size of the Chinese economy and its strong technological capabilities, it can still do very well despite US containment.

Many economic observers, including domestic observers, do not understand the logic of the Chinese government's policy-making. Unlike Western countries' macroeconomic policies, China's policy goals are diverse, including economic, social and political objectives. 

When observing China's economic policies, it is essential to consider the changes in the weights given to these multiple objectives. When non-economic goals have a higher weight, the economic growth rate will obviously be affected, as can be observed from economic fluctuations in recent years.

Last year, the Central Economic Work Conference clearly called for including non-economic policies in the assessment of macroeconomic policy consistency to ensure that the policies form a synergy. It is obvious this year that the weight of China's policy-making has shifted more toward expansion, so the outlook for economic growth this year is promising. If foreign experts and media outlets understand the logic behind China's government policy-making, they will not have a pessimistic view of the Chinese economy.

China's economy saw many new growth points in 2023, and there are still many new highlights to look forward to this year. In the field of medium-level technologies, China is constantly replacing products from developed countries. In the high-tech field, China is rapidly catching up with developed countries. 

In some areas, such as new-energy vehicles and artificial intelligence applications, China is even playing a leading role. A potential new bright spot in China's economy this year is the process of making electric vehicles (EVs) smarter. The development of the EV industry has already entered the second-half stage. 

The first half-stage competition was about the battery, now it's about smart cars. In the field, China is leading the world. In some areas, Chinese brands have even surpassed Tesla. This is something worth paying attention to this year. 

Another issue worth paying attention to is whether the real estate market stabilizes this year. If it does, it will play a very important role in stabilizing the entire economy.

This year, it is likely that foreign trade will resume growing on a full-year basis, as exports rose in the final months of last year. Yuan-denominated exports did not decrease last year. This year, if the Chinese economy recovers well and the US Fed lowers interest rates, the yuan may even appreciate against the dollar. Additionally, global demand is recovering, so with these two factors combined, it is believed that China's foreign trade will most likely record a growth this year.

The US government, together with its allies, has released a joint statement on endorsing 6G principles under the name of national security, a move that Chinese experts said reflects the White House's latest attempts to compete with China in the telecommunication sector.

Gaining an edge in 6G technology is based on the positive development of 5G, an area where the US has fallen behind amid its relentless attempts to block Chinese technological gains. Such an approach, driven by a politically motivated zero-sum game mentality, may not yield substantive results, experts said.

Experts urged the US to drop the "small yard and high fence" mentality and shift toward cooperation rather than competition for win-win outcomes.

The US, together with nine allies including Australia, Canada, Japan and the UK, released on Monday a joint statement to endorse principles for 6G under the name of national security.

The move aims to "advance research and development and the standardization of 6G networks." Trusted technology that is protective of national security is the highlight of the principle.

Although there is no mention of China, it's rather obvious that the move has a target, raising concerns of another round of US-led protectionism in the world telecommunication sector, experts said.

Some foreign media outlets characterized the move as another stage of the US tech race with China.

Before the principles were unveiled, hyping the tense atmosphere, the US publication The Hill, which covers Congress, used a sensational headline in an article on February 21, claiming that "If China dominates 5G and 6G, no defense system can protect America."

The US move was within expectations as it is desperate to make up for what it lost in the 5G era, but by drawing a "little circle" may not help the US catch up in the field, Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, told the Global Times on Wednesday.

6G technology does not come from the sky but is an expansion of 5G development. China has been successful not only in technology and standards but also applications with scenarios ranging from smart manufacturing to ports and mining, providing a good foundation for its 6G development, Xiang said.

China has built the world's largest optical fiber and mobile broadband networks, and more than 80 percent of administrative villages across the country have 5G access, data released by the Ministry of Industry and Information Technology shows.

On this basis, Chinese companies are making progress on 5G-A, or 5.5G, which represents a transitional phase between 5G and 6G, with a series of products on show at the ongoing Mobile World Congress in Barcelona, Spain.

"In order to race with China, the US should at least make some progress on 5G before reaching for 6G," the expert said.

The US announcement of its 6G principles did not shatter the Chinese telecommunication industry - just the reverse. Right after the principles were unveiled, the shares of many Chinese corresponding companies, including ZTE, closed higher by the daily limit of 10 percent on Tuesday. ZTE's transaction volume was 7.889 billion yuan, a new high for the past seven months.

Experts said that China's approach to telecommunication technology is notably open and encourages international collaboration in the realm of 6G. This stands in stark contrast to the imposition of tech restrictions by the US, which disrupts global supply chains.

In the development of 6G, international cooperation needs to be strengthened to allow more international companies to form an understanding and recognize China's standards in the area. In this case, if the US wants to isolate China's standards, it will be isolating itself, Fu Liang, a Beijing-based tech analyst, told the Global Times in a previous interview.

"If the US refuses to learn from China and open up to cooperation with China, including using more equipment from China, it will be a severe test for the development of 6G in the US, as it has already proved in its confrontation with 5G with China," Ma Jihua, a veteran telecom observer, told the Global Times, calling for more cooperation instead of confrontation or competition.

China's home-made C919 aircraft arrived back in Shanghai on Monday, after making its debut at the Singapore Airshow.

The plane arrived in Singapore on February 17 together with another C919 and three ARJ21 aircraft.

China Eastern Airlines said the C919 was on static display for the public during the air show.

During the six-day show, the booth welcomed more than 20 groups of visitors per day, said Hu Hong, cabin manager of China Eastern Airlines' cabin department. She said that the visitors included heads and senior professionals from aircraft manufacturers, aviation service providers, and upstream and downstream enterprises in the aviation industry chain.

They were very interested in asking about every detail in the cabin, especially the C919's cabin layout, number of passengers, commercial routes, operating data and routes to be opened in the future, Hu said.

China's Tibet Airlines and Commercial Aircraft Corporation of China signed a deal at the airshow for 50 aircraft suitable for high-altitude plateaus - 40 C919 and 10 ARJ21 jets.

A sea-rail intermodal train loaded with 100 TEUs of thermos cups, folding chairs and other goods departs from a train station in Jinhua City, East China's Zhejiang Province, and heads for Ningbo Zhoushan Port, to ship overseas on February 23, 2024. It is the station's first freight train trip after resumption of work following the Spring Festival. Photo: VCG

As the National Bureau of Statistics (NBS) reported last week the Chinese economy expanded by 5.2 percent in 2023 from the previous year, several Western media outlets immediately cast doubt over the reading, casting it in a negative light and seized the opportunity to wage a smear campaign on China's economic growth.

The way some leading Western newspapers describe China's 2023 GDP data carries a pessimistic connotation, which Chinese analysts said is in the tradition of their long-standing biased reporting on China, which serves their ulterior and sinister motives.

Upon a closer inspection, people will find out that such a narrative tends to be diminishing China's hard-won economic achievement in its successful emergence from the impact of COVID-19 pandemic, by overstating the troubles China's economy faces.

These are new rounds of so-called cognitive warfare against China, an important means for Western anti-China forces to attack and discredit the country, Chinese analysts pointed out.

After the NBS's 2023 GDP and other data were published, the Wall Street Journal, in a report entitled "China's Economy Limps Into 2024," alleged that China's growth will be "subpar until property market and income growth find a firmer footing."

The New York Times, meanwhile, published an essay entitled "China's Economy Is in Serious Trouble," in which the author, noted American economist Paul Krugman described that "the US economy vastly outperformed expectations in 2023," but "the story has been very different" in China.

Misinformation at work

While China's economy faces drag from certain sectors, such as a correction in the property sector, the wording and connotation carried in the Western media reports seem to be misinformation upon closer examination, analysts said.

China's 5.2-percent growth in 2023 far exceeded an estimated global average of 3-percent growth and China will likely continue to be the largest growth engine for the global economy, with a contribution of more than 30 percent to the world economy, Kang Yi, head of NBS, told a State Council Information Office press conference on January 17.

As a matter of fact, China's GDP growth is clearly one of the highest growth rates reported across the world's major economies. Compared to a mere 3.0-percent rise in 2022, the 5.2-percent growth in 2023 is both substantial and impressive, meeting Chinese government's preset target and in line with the projections by a wide poll of economists.

Moreover, according to estimates by some analysts, China is among the fastest growing major economies in the world, measured in the four years after the pandemic, growing at more than double the rate of the US and several times faster than the eurozone.

Not only China maintained a sound economic growth in 2023, the country is also poised to achieve good growth rates in 2024 and beyond.

China's economic growth is expected to reach around 5 percent in 2024, Li Daokui, director of Tsinghua University's Academic Center for Chinese Economic Practice and Thinking, told the Global Times on January 20.

Analysts expected stable economic growth in China in 2024, to be mainly fueled by supportive macro policies, and accelerated consumption and investment.

China's economy is expected to run smoothly in 2024, with annual GDP growth of about 5.3 percent, the Center for Forecasting Science of the Chinese Academy of Sciences, the government think tank, said in a forecast report published on January 9.

Ulterior purposes

Analysts said the twisted narratives adopted by the Western media showed their renewed efforts to interplay with positions held by the US politicians on the so-called "China collapse" theory, to scare investors away from China in the sphere of increasingly important financial competition in which the US deem China as a threat to its supremacy and hegemony.

Ma Jihua, a veteran telecom observer, told the Global Times on Wednesday that as the US government's endeavor to suppress China's technology development has to a large extent failed, demonstrated by China's steady expansion in mature semiconductor chips.

And, increasingly, the focus of competition is being shifted to the financial front, in which media misinformation plays a key role.

"Since last year, the US stock market has been on an upward trend, regardless of the economic woes the US economy had. It seems neither weak economic data nor a pending fiscal crisis that festers the economy can prevent the US stock market from going higher and higher," Ma said.

As the US stock market became "too big to fail," Western politicians, financial institutions and media are motivated to spin narratives that can shepherd capital away from China and into the US, and this tactic will not only serve to buttress the precarious performance of the US stock market, but hurt that of China's, observers noted.

Some Western media pundits also weighed in, delving into narratives to prove that China's economy is in dire straits, in the hopes to frighten away China's business partners and international investors interested in buying Chinese yuan-denominated assets and diversifying their investment portfolios to reduce their holdings of US dollar assets.

Deeply rooted in their zero-sum mentality, misinformation has become a tool in the overall US strategy to suppress China's development, Li Haidong, a professor at the China Foreign Affairs University, told the Global Times on Tuesday.

"Some Western media outlets have used this occasion to once again distort the development of the Chinese economy in both quantity and quality terms," Li Haidong said. "They may hope their way of story-telling could sow discontent and instability among Chinese over the country's economic future."

"In finance, confidence is paramount. Whoever commands confidence and market expectation command resources. Economies that face destabilization will see resources flee away," Li Haidong said, noting that the reporting of China's 2023 GDP once again showed that Western media has been instrumental in the West's China-smearing campaign that is a far shot from fact.