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.

The China Securities Regulatory Commission (CSRC) pledged to take more powerful and effective measures to stabilize the market and boost confidence during its 2024 work meeting held on Thursday and Friday.

The conference conveyed a proactive approach to addressing the concerns of investors, with a commitment to maintaining market stability and intensifying the crackdown on unlawful practices, analysts said.

Efforts will be made to enhance the internal stability of the capital market and establish effective mechanisms to maintain its smooth operation, the CSRC said.

Among the key takeaways from the conference were an emphasis on an investor-centric approach, coordination between stability and progress, and integrated promotion of strong regulation, risk prevention, and development.

The CSRC said it will improve regulatory rules such as issuance pricing, quantitative trading, and margin trading to protect the rights of investors, especially smaller and individual investors.

Additionally, it will promote the assessment system for state-owned enterprises based on their market value and reinforce the regular delisting mechanism, promoting survival of the fittest.

The CSRC said it will increase efforts to combat fraud, stock manipulation and insider trading in the capital market. It will also intensify investigations into wrongdoing and impose more severe penalties on lawbreakers.

Efforts will be made to push for the sound implementation of a registration-based system for stock issuance, strengthen effective supervision throughout the entire process of issuance and listing and improve relevant mechanisms and arrangements, it said.

The CSRC also pledged to promote the integration of strong regulation, risk prevention and development, while coordinating risk control and providing appropriate financing support.

The Shanghai Composite Index closed on Friday at 2910.22 points, up 0.14 percent, achieving a four-day winning streak. The Shenzhen Component Index closed at 8762.33 points, down 1.06 percent. The tech heavy ChiNext Index closed at 1682.48 points, down 2.23 percent.

South Korean chip maker SK Hynix has dismissed rumors that it is selling its factory in Dalian, Northeast China's Liaoning Province, which mainly produces 3D NAND flash memory. It said it remains focused on the company's business in China.

"We do not intend to sell our Dalian factory in China at all," the company said in a statement on Tuesday, according to a report by guancha.com.

In light of trade restrictions and the US' intensifying chip war, SK Hynix said that it will maintain its China operations, while abiding by regulations and laws in the jurisdictions in which it does business. The firm is the world's second-largest memory chip maker.

It also vowed to make further contributions to the development and stabilization of the semiconductor industry, the report said.

Earlier this month, Bloomberg reported that SK Hynix had been affected by the US' export control policy and was considering the sale of its Dalian factory, which the Seoul-based company acquired for $9 billion from US technology company Intel in December 2020.

South Korea's economy is heavily reliant on the semiconductor sector. That makes it especially vulnerable to Washington's drive to restrict supplies to China and constrain Beijing's access to key chip technology, the Bloomberg report said.

Against the backdrop of mounting pressure from the US on Seoul and other countries to isolate China from global tech supply chains, this is the second time the South Korean manufacturer has denied rumors about the upcoming sale of the factory in Dalian.

In April last year, the company described "the rumored sale" of the Dalian plant as "unsubstantiated," saying construction of the Dalian facility "will be completed as planned," South China Morning Post reported.

According to a Business Korea report, China accounts for a significant portion of sales for South Korean semiconductor manufacturers, and SK Hynix's revenue from sales to China peaked at nearly 47 percent of the total in 2019.

In May 2022, the firm announced it would build a new wafer manufacturing base in Dalian to produce 3D NAND flash memory, further expanding its business in China after acquiring Intel's assets in the region.

The new manufacturing facility will promote the competitive power of its local capacity as well as securing supplies in the Chinese market, according to Chung Eun-tae, president of SK Hynix China.

He noted that China is an important partner for SK Hynix and the company has been continuing its investment in its existing facilities in Wuxi, East China's Jiangsu Province and Southwest China's Chongqing Municipality.

China plans to launch a "2024 Spring Breeze Action" from late January to early April, aiming to create 30 million job openings. Experts noted on Wednesday that the initiative is to stabilize employment and boost the economic recovery as the new year begins.

The initiative targets rural labor and businesses with a shortfall of workers, focusing on guiding migrant workers returning to urban centers, promoting local employment and entrepreneurship and organizing recruitment services for businesses, Yun Donglai, a deputy director of the Ministry of Human Resources and Social Security's employment promotion department, said at a press conference.

The action has six key aspects. First, it involves accurately identifying needs across the labor market by delving into rural communities and workshops, using various methods to learn the preferences of workers and the headcount requirements of employers, Yun said.

It also includes conducting intensive recruitment by making full use of online platforms such as recruitment websites and short video platforms, as well as public squares, transit stations and marketplaces to launch targeted recruitment activities.

It will also facilitate joint recruitment efforts between labor-intensive regions and regions that are short of laborers, and encourage entrepreneurship by exploring entrepreneurial incubation bases and hometown entrepreneurship parks. Additionally, it will aim to match job opportunities and skills training for older migrant workers.

The Spring Breeze Action has been an annual event for many years, representing a significant part of government-led efforts to promote employment, Li Changan, a professor at the Academy of China Open Economy Studies of the University of International Business and Economics, told the Global Times on Wednesday.

The period from January to April is crucial for the labor market, particularly for groups like migrant workers, as the period around the Spring Festival holidays represents a crucial time for finding a job, Li said.

These policies could reduce imbalances in employment information and enhance the overall efficiency of the job market, Li said.

In 2023, China added 12.44 million urban jobs, official data revealed. The surveyed urban unemployment rate stood at 5.2 percent, down 0.4 percentage points from 2022.

The overall employment situation remains stable, with a continued improvement for key demographic groups, the National Bureau of Statistics (NBS) said in a report.

Thanks to the normalization of economic activities, major cities have experienced a boost in economic vitality, leading to a continuous improvement in the employment situation, Wang Pingping, an NBS official, said in a statement.

Despite mounting pressures in the labor market in recent years, several new trends have emerged for new graduates and other job hunters to explore, and this situation is expected to continue to stabilize the job market and boost the economic recovery, experts said.

For instance, there is a growing trend of university graduates returning to their hometowns to start businesses. With the flourishing development of the digital economy, a considerable number of self-employed, temporary or flexible employment models have become new trends in the market.

The emergence of cutting-edge technologies in the digital economy - combined with new scenarios and sources of demand - have brought more options and chances for young people, Li Qiang, a vice president of Zhaopin.com, told the Global Times in a recent interview.

A diverse range of job opportunities have emerged with different entry levels, from the frontiers of digital technology to more basic jobs in expanding sectors such as artificial intelligence (AI), Li Qiang noted.

Mexin Group, a door company based in Southwest China's Chongqing Municipality, told the Global Times that it has created new positions and expanded the hiring of AI engineers amid the development of its intelligent production.

Digital transformation has advanced the production and development patterns for enterprises in the manufacturing sector, while providing potential and space for young job applicants, particularly in rising sectors such as industrial automation and new energy.

According to Zhaopin.com, in the first half of 2023, the number of job openings in the new-energy industry grew 36.1 percent year-on-year, while in the industrial automation sector, job openings rose 6.9 percent.

Industrial automation supports technology and products in smart manufacturing. The growth in recruitment reflects the vigorous momentum of new manufacturing and shows the country's enthusiasm for digital transformation across various industries, the report said.

As one of the largest dairy and milk consumers in the world, with an annual industry growth rate of about 10 percent, China has in recent years set its sights on aseptic packaging, an unassuming but critical phase for the milk industrial chain, which aroused market attention as Chinese companies strategize to break foreign monopoly through business mergers and acquisitions.

In the Chinese market, aseptic packaging demand is primarily driven by liquid milk products.  In 2022, the retail scale of domestic liquid milk reached about 440 billion yuan, marking a 4 percent year-on-year increase. The sector’s compound annual growth rate is projected at 4.8 percent, supporting the burgeoning aseptic packaging industry, according to data from China Insights Consultancy.

Chinese leading aseptic packaging enterprise Shandong NewJF Technology Packaging Co., Ltd (NEWJF) announced in January 2023 its acquisition of a 28.22 percent stake in Greatview Aseptic Packaging and completed the acquisition in October of the same year, notably boosting NEWJF’s competitiveness in the liquid product packaging market. 

“From a macro point of view, the acquisition further enhanced China’s food security and accelerated the domestic substitution in aseptic packaging sector,” a representative from NEWJF told the Global Times, adding that the move also promoted a long-term steady development of downstream enterprises.

Both NEWJF and Greatview are prominent companies in the industry and their cooperation is seen as a strategic endeavor to enhance the overall competitiveness and productiveness of the domestic aseptic packaging industry. 

The two sides’ partnership includes a centralized fund for research and development aimed at upgrading domestic aseptic packaging technology, ensuring the security and independent development of the sector, said the NEWJF.

“NEWJF values this cooperation opportunity, and is willing to explore the aseptic packaging sector providing clients and industry with better services,” said the NEWJF，as Greatview published circular and notice of Shareholders’ Assembly on appointment of directors on January 9, 2024,“It is our right to appoint directors as the largest shareholder and we believe that diversifying Greatview’s board of directors will expedite its sustainable development.”

Founded in 2007, NEWJF, listed on the Growth Enterprise Market of the Shenzhen Stock Exchange in September 2, 2022, witnessed consecutive revenue growth from 2020 to 2022. Analysts believe that the acquisition will facilitate NEWJF in further exploring international markets.

About 20 years ago, aseptic packaging technology played a pivotal role in Chinese milk brands’ nationwide development. This technology, which allowed for a six-month-expiration date for fresh milk, was initially monopolized by foreign companies, stifling the independent development of the domestic milk industry. 

At the time, Swedish aseptic packaging company Tetra Pak held over 90 percent of the domestic market share, cooperating with Chinese milk giants Yili and Mengniu. Before 2008, the cost for aseptic packaging accounted for about 30 percent of the overall cost of milk products, and compressed the profit margin of the milk industry.

According to a report from Chinese analysis firm TF Securities, in 2020, Tetra Pak still accounted for over 50 percent of domestic market share, while domestic aseptic packaging brands are expected to gradually increase market share by breaking through technological monopolies, and entering the core customer supply chain with a price advantage.

NEWJF became qualified provider of aseptic packaging material for Yili in 2009 and it solidified its ties when Yili bought a 20 percent stake in NEWJF in August 2015.  While Yili’s current stake has been reduced to less than 5 percent at present, it still remains NEWJF’s largest client, generating 70 percent the packaging company’s revenue. 

Greatview Aseptic Packaging accounts for about 40 percent of products of Mengniu, and is also the core supplier of New Hope Dairy and its wholly-owned subsidiaries Xiajin Milk. 

The acquisition helped NEWJF resolve overcapacity issues with Mengniu and enhance production efficiency by adopting a universal management system. The collaboration between the two leading companies also facilitated the healthy development of the industry, moving away from price wars. 

What’s more, Greatview’s overseas manufacturing bases and aseptic filling machine technologies were also a catalyst for the domestic substitution process of aseptic packaging, further boosting NEWJF’s global business.

Business insiders said the acquisition positions NEWJF as the most promising aseptic packaging company in China, with the potential to replace Tetra Pak.

According to data from SWS Research, domestic demand for aseptic packages was 113.6 million in 2022, up 3.2 percent year-on-year. The market scale has grown to 20.1 billion yuan, reflecting a 4.1 percent year-on-year increase. 

Considering the numerous opportunities in China's milk and beverage market, NEWJF is expected to replicate Tetra Pak's successful path and grow into a “Hidden Champion” in the unassuming industry of aseptic packaging.

The recent report released by the long-established conservative think tank in the US, the Center for Strategic and International Studies (CSIS), states that China's scientific research vessels engaged in energy and marine environmental surveys in the Indian Ocean can support "military needs," including how to maneuver and obscure submarines during conflict. The timing of this report is delicate, coinciding with the visit of Maldivian President Mohamed Muizzu to China, while another South Asian country, Sri Lanka, recently announced the suspension of foreign research vessels including those from China entering its waters under India's pressure. The CSIS report rightly comes at a time when some countries need to manufacture a "China threat" narrative in the Indian Ocean region and provides them with ammunition.

It is essential to shed light on the CSIS in this context. Founded during the Cold War, it has intricate connections with the US military and intelligence agencies. Active-duty military officers can directly serve as researchers in the think tank, and the think tank also regularly undertakes policy reports commissioned by the US Department of Defense. When a think tank with such affiliations releases a report, it becomes challenging for the outside world to acknowledge its authenticity and independence, prompting skepticism about whether it serves as a "white glove" for advancing the strategic and tactical objectives of the US military.

Another noteworthy point is that, following the release of the report by CSIS, Western media quickly followed up on its content. This pattern of "military/intelligence agencies leak information - media follows up with sensationalism - government and parliament apply pressure" has become quite common in recent years in the US and Western countries. The so-called "evidence" against China is often later proven to be baseless or inconclusive, while measures by the US and Western countries to contain and suppress China remain in place.

For instance, take the recent issue raised by the US regarding China's comprehensive scientific expedition in the Indian Ocean. These activities have been ongoing for many years and involve more than just China; countries like Myanmar, Sri Lanka, Thailand, Bangladesh, among others, were once invited by China to participate. Myanmar, Sri Lanka and Bangladesh are all Indian Ocean nations. Does this mean all these countries have intentions to "invade" the Indian Ocean? China has provided detailed public explanations regarding the research topics, scope, and results of each scientific expedition, both before and after the events. What more does China need to clarify? If some countries, right from the beginning, are not interested in the scientific research vessels but have other disguised intentions, then, no matter how China proves its innocence, they will find reasons to overturn it.

The US accuses China's scientific research activities of possibly having military purposes, but what the outside world perceives is the US showcasing its military actions in the Indian Ocean. Just last year, the US and the UK disregarded United Nations resolutions and the sovereignty of Mauritius by privately transferring Diego Garcia Island in the Indian Ocean, which sparked international outrage. Since the US wants to take such a big risk and maintain its military presence in the Indian Ocean, it definitely needs to find a reason. Since even Chinese garlic can be used as a reason to "threaten US national security," what else is deemed impossible?

The Indian Ocean is one of the least understood oceans by the scientific community, and a fundamental reason is the lack of sufficient on-site observations. The unsolved mysteries surrounding the Indian Ocean not only result in scientific losses but also imply uncertainties faced by Indian Ocean countries in terms of climate, ocean currents, resources exploration, and other aspects. In the context of global warming and rising sea levels, this even endangers the national security of coastal countries and the security of all humanity. China and regional countries are exploring the natural ecology of the Indian Ocean through cooperation, without any hidden agenda. The purpose is to further promote marine ecological protection, develop sustainable blue economy, and jointly respond to crisis challenges. In the eyes of some countries, including the US, they only see their own military hegemony and disregard other countries, obstructing and threatening other countries' independent cooperation. It needs to be reminded that most of the Indian Ocean is international waters, not their internal sea.

Interestingly, in response to the vivid portrayal of China's scientific research vessel as a "military threat" by American media outlets such as The Washington Post, there is merciless ridicule from some netizens. One comment sarcastically mocks the US, saying, "Oh my, doesn't China know that only the US can do such things?!" Regardless of how sternly it presents itself now, the US' double standards have already reduced its credibility to zero in the eyes of the international community, resulting in a backlash in public opinion. Hong Kong media has pointed out that while other countries are constrained by the US' selfish interpretation of international law, the US believes it is not bound by the law. Its ideology is, "Do as I say, not as I do."

Number of passenger trips during China's Spring Festival rush expected to reach 9 billion

The Democratic Progressive Party (DPP) separatist candidate Lai Ching-te's latest remarks to advocate the fallacy of "Taiwan independence" as well as his previous remarks indicate that if he was elected as the leader of Taiwan region, he will further promote "Taiwan independence" and separatist activities and the so-called "new situation" that Lai wants to create will be a dangerous situation with rough waves in the Taiwan Straits, Chen Binhua, a spokesperson for the State Council Taiwan Affairs Office told a press conference on Wednesday. 

On Tuesday, Lai told a press conference that he will continue Tsai Ing-wen's diplomatic, national defense, and stable cross-Straits policies, claiming that if elected, it will contribute to creating a new situation in the Indo-Pacific region.

Chen said that the cross-Straits relations have deteriorated from peaceful development to tense confrontation over the past eight years, which fully proves that the so-called "Tsai Ing-wen path" is a path of "Taiwan independence" and confrontation, and is harmful to Taiwan. It is the major threat to Taiwan's security, the interests of Taiwan people, and regional stability.

Lai claimed to continue the path, which means continuing old path of provoking "independence" and confrontation, leading Taiwan away from peace and prosperity but toward conflict and recession, said Chen.

"Taiwan independence" is incompatible with peace in the Taiwan Straits and goes against the interests and well-being of the people in Taiwan. Only with peace and stability in the Taiwan Straits and peaceful development of cross-Straits relations can the people in Taiwan live a peaceful, secure, and prosperous life, Chen said.

The spokesperson also sincerely hoped that the majority of the compatriots on the island of Taiwan will recognize the extreme harm of the DPP's "Taiwan independence" path and the extreme danger of Lai's provocation of cross-Straits conflicts, and make the right choice at the crossroads of cross-Straits relations, to create a new situation of friendly support and prosperous development between compatriots on both sides of the Taiwan Straits.

The mutual visits of the table tennis teams from Chinese and the US' universities continued the friendly chapter of Ping-Pong Diplomacy and injected new strength into the two countries' people-to-people exchanges, the Chinese Foreign Ministry said on Tuesday when asked to comment on the Peking University students' visit to the US in December 2023, followed by a trip by students from the University of Virginia to China.

53 years ago, young table tennis players from China and the US raised the curtain for the normalization of bilateral relations in Beijing, enabling "the little ball to move the big ball," said Chinese Foreign Ministry spokesperson Mao Ning at the Tuesday press conference.

"The more frequent exchanges the two countries' people have, the stronger the public support for developing bilateral relations, the broader the space, and the stronger the driving force there will be," Mao added.

From December 12 to 23, the Peking University table tennis team made up of 15 students and teachers was invited to visit the US to for the US Table Tennis Open in Los Angeles. They also participated in a series of events commemorating the 52nd anniversary of China-US Ping Pong Diplomacy in Washington, San Francisco, and Los Angeles, with close interactions between the young Americans and local residents.

"As the backbone of future society, young people from China and the US should step out of their countries and experience the lifestyle and culture of other countries. Ping Pong, as a medium of communication, has truly brought us closer," Wu Bohan, a student from the Peking University table tennis team told the Global Times.

"What impressed me the most is the huge interest and enthusiasm the American students showed during our visit to the US this time," Zhang Yuwen, a member of the Peking University table tennis team and student from the School of International Studies, told the Global Times. "Every time the Americans saw the name 'China' marked on our jerseys, they would come to ask where in China we come from; which games we play, and even wished us good luck in our games."

In return, 18 table tennis team members from the University of Virginia were invited to visit China, coinciding with the 45th anniversary of diplomatic ties between China and the US. They stayed in Beijing from January 4 to January 8 and participated in the youth table tennis exchange at Tsinghua University.

During their nine-day trip to China from Hong Kong, Beijing to Shanghai the students learnt about the history of Ping-Pong Diplomacy and cultural differences between the two countries.

Mao noted that China is willing to work with the US to implement the important consensus on promoting cultural exchanges reached at the China-US summit in San Francisco, to promote the spirit of "Ping-Pong Diplomacy," and to continue new chapters of friendship between the Chinese and American people.

The processing trade is one of the sectors most affected by rising labor costs in China. In the eyes of some Westerners, China's labor-intensive processing trade has lost its competitiveness, but the real story of the labor-intensive industry chain is much more complex than the industrial transfer trend as depicted by these pessimists.

Chinese authorities recently rolled out a guideline to improve the development of the processing trade. The guideline, regarded as the most important for the reform of China's processing trade since 2016, put forward 12 measures across six categories, involving efforts to encourage the expansion of Chinese domestic markets for processing trade.

Processing trade refers to the business activity of importing all or parts of raw and auxiliary materials, parts, accessories and packaging materials, and re-exporting finished products after processing or assembly is completed by companies within China. But people's concept of China's processing trade needs to change, as the country promotes sales of finished products in the domestic market and also integrates the development of domestic and foreign trade.

The processing trade is an important aspect of international industrial transfers. Since China launched its epochal reform and opening-up drive in 1978, the country has utilized an organic combination of capital, techniques, management and other advantages of foreign investment with the advantage of low-cost elements in China, such as the labor force, and it has become a globally oriented processing and manufacturing base.

The proportion of processing trade in China's foreign trade peaked at 53 percent in 1998. It plays an important role in the foreign trade and national economic development of China.

The international environment and domestic conditions for the development of the processing trade have undergone material changes. On the one hand, increasing labor costs have put pressure on traditional sectors in the coastal regions. Meanwhile, the rise of trade protectionism in the US-led West, as well as weak external demand, have posed challenges to China's processing trade, especially the development of labor-intensive industries.

On the other hand, China's foreign trade also has new opportunities. The rise of domestic consumer power in China is becoming a new advantage in China's foreign trade. China's economic miracle in the past few decades has led to the rise of its middle class, making China an increasingly important importer in the global industry chain and a consumer market for finished products.

China has strengthened the integration of domestic and foreign trade. Efforts have been made to break down industry barriers, promote the convergence of domestic and international standards, and accelerate the mutual recognition in conformity assessment.

Recently, some Western media outlets have run reports about "industrial transfers," "the withdrawal of foreign investment" and "economic decoupling from China," which constitute a new round of bad-mouthing China's economy with a sinister intention. Some Westerners always like to exaggerate the risks faced by the Chinese economy and deliberately ignore its positive aspects.

The issuance of guidance on the processing trade at this time shows that Chinese policymakers are accelerating the integration of China's foreign trade advantages and consumption advantages. China is the world's largest trading country and the second-largest consumer market.

The power of this fusion will be astonishing. It will create new advantages for the development of China's processing trade, and promote China's transformation from a world factory relying on cheap labor to a trading powerhouse.

The guidance also said China will encourage the processing trade of high value-added products, while supporting the development of advanced manufacturing and strategic emerging industries in the processing trade. It is expected that more favorable policies will be introduced, promoting China's foreign trade reform to create new advantages in the global competition.