Major stock markets in the Asia-Pacific region closed sharply lower on Monday, with Japan and South Korea seeing significant declines and triggering circuit breakers at times, amid concerns over a possible US recession and escalating tensions in the Middle East.

Despite growing global tensions, experts said that China's role as the world second-largest economy would become more pronounced, as the Chinese stock market has remained resilient and Chinese assets are undervalued, including A-shares, Hong Kong stocks and Chinese concept stocks.

On Monday, South Korea's composite index KOSPI fell by 8.77 percent to 2,441.57 points, marking the largest single-day drop on record. Japan's Nikkei 225 index declined by 12.4 percent to 31,458.42 points, marking a third consecutive day of significant losses and breaking below the 32,000-point threshold.

During Monday's session, trading in both the Nikkei 225 and TOPIX indices in Japan was halted briefly after triggering circuit breakers. South Korea's major indexes also set off circuit breakers, leading to a 20-minute trading halt. This was the first time since March 19, 2020, that South Korea's stock market was suspended due to circuit breakers.

Australian stocks closed down 3.7 percent on Monday, wiping more than $100 billion from the market's capitalization - the biggest fall since the pandemic lockdown era, the Australian Broadcasting Corp reported.

The sell-off was largely attributed to concerns over the poor US economic performance amid heightened worries about an economic downturn, exacerbated by disappointing US nonfarm payroll data from the previous week, prompting further panic in capital markets, according to experts and media reports.

Experts attributed the steep declines to the US Federal Reserve's decision to leave interest rates unchanged, coupled with disappointing economic data, leading to a sharp drop in US stocks. Behind these movements lies a growing investor fear of a US economic recession.

The significant downturns in Japan and South Korea, triggered by the recent decline in the US market, have multiple underlying reasons, 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 Monday.

"More importantly, it (the stock slump) may reflect fundamental concerns, specifically the unclear economic outlook in the US, with the recent data releases, including labor market indicators, also below expectations," Li said.

There has been speculation among traders that the Federal Reserve will step in with an emergency interest rate cut, according to media reports. However, no official confirmation has been made.

Economists at Goldman Sachs raised the likelihood of the US economy slipping into a recession within the next 12 months from 15 percent to 25 percent.

While world capital markets are bearing the brunt of the possible US economic downturn, China's A-share market is showing its resilience.

On Monday, the Shanghai and Shenzhen stock exchanges fluctuated narrowly while managing to avoid the sharp declines seen in international markets, with many blue-chip stocks rebounding, which is noteworthy.

"Despite the widespread downturn in global markets, A-shares' resilience against declines indicates that previous adjustments have been quite sufficient," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Monday.

Moreover, once the European, American and Japanese stock markets begin to decline from their peaks, there may be an opportunity for a turnaround in the Chinese stock market, experts said. "Capital tends to seek new valuation opportunities, and A-shares and Hong Kong stocks are undoubtedly among these attractive valuation areas," Yang noted.

Another positive sign for the Chinese capital market was the surge of the yuan by 1,000 basis points against the US dollar in a single day on Friday, appreciating significantly to about 7.1 against the dollar.

With expectations of gradual interest rate cuts by the Federal Reserve, there is potential for a further appreciation of the yuan, possibly even returning to below 7.0 next year, Yang said, noting that "anticipated appreciation of the yuan could attract inflows of foreign capital, especially considering that high-quality Chinese assets are currently undervalued."

As for whether China can weather this wave of market volatility, Li said that "for China, the substantial prior declines have already alleviated much of this risk," indicating confidence in the country's ability to continue attracting foreign capital, particularly following possible US interest rate cuts. 

"As to how much it may draw in terms of foreign investment, it will also depend on domestic economic conditions and policy developments," he said.

The US-Philippines "2+2" security talks came after much double talk by US Secretary of State Antony Blinken aimed at the recent provisional arrangement between China and the Philippines, which has somewhat reduced tensions between the two countries. 

In conjunction with the East Asia Summit Foreign Ministers' Meeting in Laos, Blinken criticized alleged "escalating actions" at sea by China. However, it was the US that has created the tensions in the South China Sea, while hypocritically applauding the China-Philippines de-escalation arrangement. 

It should be noted that tensions between China and the Philippines began in early 2023, when retired US Air Force Colonel Raymond Powell, with the help of the US Office of Naval Research, conceived a "cognitive warfare" operation known as "Project Myoushu." 

The strategy enlisted Philippine maritime security and defense forces in an "assertive transparency" operation to challenge a 25-year-old practice with China banning construction materials supplies to a corroding, deliberately stranded Philippine Navy ship to boost its claim over Ren'ai Jiao.

The modus operandi was to provoke deterrent or police action from the China Coast Guard. Philippine Coast Guard vessels or privately hired ships attempted to smuggle prohibited materials or violate fish sanctuaries, which are restricted for conservation purposes. These Philippine vessels also transported Western and Filipino media to film, report, and denounce China's actions as "bullying."

Powell, the chief of the US Project Myoushu, openly admits that the aim of his operation is to exact reputational costs on China and generate international support for the Philippine cause. However, both efforts have failed. According to the State of Southeast Asia 2024 survey, compiled by the Singapore-based ISEAS-Yusof Ishak Institute in April, over half of Southeast Asians now prefer to align with China rather than the US. ASEAN member countries are critical of the Philippines' unilateral and disruptive activities.

The concern for Filipinos is that while the de-escalation arrangement may be holding firm at this early stage, it remains fragile as various foreign and domestic elements continue to besiege it with fake news and disinformation.

The visit of Blinken and US Defense Secretary Lloyd Austin will be another opportunity for the US to put pressure on the Philippines to pull out of this de-escalation arrangement. 

China and the Philippines have, to some extent, restored peace and stability in the areas of the South China Sea after the two sides reached a provisional arrangement on the transportation and replenishment of humanitarian supplies to Ren'ai Jiao in order to maintain the stability of the maritime situation. The arrangement led to a "successful" resupply mission on Saturday delivering humanitarian goods such as food, water and medicines for the BRP Sierra Madre's Philippine Marines. 

The Philippines said in a statement, "No untoward incidents were reported." One of the conditions in the deal is the embargo on construction materials that may be used to rebuild the rust-corroded ship. 

Now, de-escalation is being pursued, affirming the deep desire of 95 percent of the Filipino population to devote the national energy to economic recovery instead of the imagined threat to national territory.

Will this effort of the Philippine government to normalize relations with China holds strong over the months and years ahead? The Filipino public is trying to ensure that it will. Protesters are slated to greet the arrival of Blinken and Austin with shouts of: Blinken-Austin - Get Out, Stay Out! 

China's Ministry of State Security warned those working with confidential information against using artificial intelligence (AI) technology to write confidential materials and chat groups to discuss classified content, saying that numerous cases of data leaks were caused by the use of online office programs in recent years.

In recent years, AI writing has flourished and gradually become the "pen" of many office workers. Some personnel handling classified information, in order to save time, illegally input classified materials and content into AI writing programs to generate articles, believing that they are only extracting fragments of documents and will not cause leaks, the ministry wrote in a post on WeChat on Sunday.

It warned that those people are unaware that AI programs automatically collect the information input by users for autonomous learning, and the related data can be easily stolen by foreign intelligence agencies, leading to the leakage of national secrets.

It also said that some institutions have set up "work groups" on WeChat for the convenience of communication to report and exchange work matters. However, some of those institutions have violated regulations by notifying and discussing confidential contents in these groups, adding that some had even posted content involving state secrets in the form of pictures, files, and etc. in the group chat.

The confidential information in these group chats is easily re-posted by group members and even publicly disclosed, and the scope of knowledge cannot be controlled. Foreign intelligence agencies can also obtain chat records of key work groups through network attacks, posing a great risk of leakage of confidential information, said the ministry.

The ministry also warned cloud storage software of leaking confidential documents and image recognition app leaked the original confidential documents. In order to prevent similar leakages, the ministry advised people involved in confidential matters not to handle classified information online while working remotely. It is strictly prohibited to process classified information through the internet, and it is forbidden to publish or disseminate classified information online while using office software.

"The biggest meaning of my job is to improve Timorese people's lives and bring about opportunities for them to chase their dreams," Dai Linfeng, 34, an employee at the National Power Grid Project of the China Nuclear Industry 22ND Construction Co, Ltd (CNI22) in Timor-Leste, told the Global Times.

Dai's job in Timor-Leste is to arrange, guide, and supervise the work of various departments and projects, ensuring safe and qualified construction.

He said that when he first arrived in Timor-Leste in 2022, he began to realize that "the country was economically underdeveloped, with inadequate infrastructure, and local people were living in a low standard of life."

But he was not disappointed as he knew that this is exactly why he and his predecessors came, as well as stayed here for so many years.

"We are here to make changes happen," he said.

Changes did happen. "One day, on my way to the company, I saw many local villagers gathered together watching a live soccer match on TV. It suddenly dawned on me that it was our construction of the national power grid that had enabled this happen," Dai said proudly.

China Nuclear Industry 22ND Construction Co, Ltd (CNI22), which is affiliated to the China National Nuclear Corporation (CNNC), won the contract of the Timor-Leste national power grid project in February 2009. Seven months later, the first batch of CNI22 employees set foot on Timor-Leste's land and started their career of devoting themselves to the construction and development of the country since then.

According to Dai, the main mission of the CNI22 Timor-Leste branch is to build, operate and maintain one national dispatching center, nine substations, 603 kilometers of transmission line, and 1,407 iron towers under the national power grid project of Timor-Leste.

The project is not easy from the very first beginning given the high mountainous forests and wilderness of the island country. It is common for CNI22 engineers and constructors to be get hit by a sudden downpour during site selection. Not to mention the rugged mountain roads and the steep cliffs beside.

Now 65 Chinese employees with an average age of less than 35 are working at the CNI22 Timor-Leste company in charge of the operation and maintenance of the national power grid project.

They told the Global Times that the most difficult task is line inspection as they had to climb towers and cross rivers in the deep mountains.

"Apart from the year-round high temperatures, the terrain on the island is undulating, and it is common for us to encounter snakes, rats, insects, and ants," said Yang Huchen, director of the engineering department.

According to Yang, due to poor transportation in Timor-Leste, many places cannot be reached by trucks, thus their employees can only walk there. The communication signal in the mountains is also weak, making each line inspection feel like an adventure.

Yang clearly remembers one time when he was inspecting an iron tower near the river, the sky was clear and sunny. Just about 10 minutes later, a rainstorm suddenly hit. He and his colleagues immediately ran uphill. Not long after, when they looked back at the path they had just taken, the water, which was only at their ankles before, had risen to over a meter high, and the trees along the way had been knocked down by the flood.

It is not an exaggeration to say that CNI22 workers have brought a light to the people of Timor-Leste with their feet, and they continue to safeguard this light with their feet.

"As long as you are here, we can rest assured!" The dedication and efficient work of CNI22 youngsters have earned themselves thumbs up from local residents time and time again, which in return serves as encouragement to the young team and strengthens their resolve to continue to contribute to the development of Timor-Leste.

Apart from devoting to the construction of infrastructure of Timor-Leste, the CNI22 has also participated deeply in local people's lives after 15 years of integration. It has donated a multimedia classroom equipment to local schools, and has also been helping local people in need of help by sending them supplies like rice and milk, actively participating in public welfare activities.

"Our projects and our presence in Timor-Leste not only help promote cooperation between China and Timor-Leste toward mutual benefit, but also create a large number of opportunities for local people to improve their livelihoods and realize their dreams. This makes me feel that my work is so meaningful," Dai said.

"I would like to participate in more livelihood projects in Timor-Leste in the future, so that more local people can get benefited, I also hope that under the Belt and Road Initiative, China and Timor-Leste will continue to cooperate and bring more chances," Dai said.

China urged the US and Japan to discard their cold-war mentality and effectively reduce the role of nuclear weapons in national and collective security policies, Chinese Foreign Ministry spokesperson Lin Jian told the Global Times on Tuesday, in response to recent talks between senior Japanese and US officials in Tokyo on concerns over the so-called China's continued rapid expansion of nuclear arsenal.

US Secretary of State Antony Blinken and US Defense Secretary Lloyd Austin held 2+2 talks with Japanese Foreign Minister Yoko Kamikawa and Defense Minister Minoru Kihara on Sunday, according to a joint statement released by the Pentagon. 

Japanese and US defense chiefs and top diplomats met in Tokyo for talks on boosting military cooperation, including upgrading US forces command and reaffirming the US' commitment to "extended deterrence," according to a previous report.

Lin said China follows a policy of "no first use" of nuclear weapons, pursues a nuclear strategy of self-defense, keeps its nuclear capabilities at the minimum level required for national security, and never engages in any forms of arms race.

China has taken note of the relevant reports and expresses serious concern over recent developments, Lin said. For any country, as long as they do not use nuclear weapons against China, they will not feel threatened by China's nuclear weapons, Lin added.

"Extended deterrence" is a product of the cold war. Enhanced cooperation between the US and Japan on nuclear deterrence will stimulate regional tensions and increase the risk of nuclear proliferation and conflict, Lin said.

Lin added that Japan has long claimed to be a victim of nuclear attacks and has advocated the establishment of a nuclear-weapon-free world, but in reality, it is enjoying the "nuclear umbrella" of the US, reinforcing "extended deterrence" and seeking the so-called nuclear containment power. It is necessary for the Japanese side to provide the world an explanation for its inconsistency in words and deeds.

China also advises the US and Japan to take practical actions to promote strategic stability and maintain regional peace and security.

Lin said that China urges the Japanese side to reflect on its strategic security policy, effectively fulfil its obligations as a non-nuclear-weapon country under the Treaty on the Non-Proliferation of Nuclear Weapons, to abide by its commitment to the three non-nuclear principles and to refrain from pursuing nuclear weapons in any form.

In addition to the 2+2 talks and Japan-US ministerial meeting on extended deterrence, a Quad foreign ministers meeting was also held in Tokyo.

Lin also said during the regular press conference on Tuesday that disregarding China's serious concerns, Japan and the US have directly interfered in China's internal affairs on issues related to the Taiwan question, Hong Kong, Xinjiang and Xizang, discredited and attacked China on sea-related issues, adopted a cold-war mentality, engaged in bloc politics and stirred up confrontation, thereby seriously undermined regional peace and stability while jeopardizing the security interests of other countries.

China firmly opposes and has made solemn representations to the Japanese side through diplomatic channels, requesting the Japanese side take an objective and rational perception of China, stop engaging in political maneuvering on China's internal affairs, stop provoking trouble on sea-related issues, stop drawing in extra-territorial countries to create division and confrontation in the region, and follow the path of peaceful development in order to gain the trust of its Asian neighbors and the international community through practical actions.

Population of Siberian tigers in China is growing following a concerted effort to save the endangered species, and the construction of a national park-based system which has provided a suitable habitat for tigers.

China has four subspecies of tigers of the Siberian tiger, Indochinese tiger, Bengal tiger, and South China tiger, making it the country with the most tiger subspecies.

Over recent years, the country has continuously strengthened tiger conservation efforts through a series of effective measures, including establishing a series of natural reserves and management stations in the wild tiger distribution areas, designated important tiger habitats, strengthened habitat patrols and monitoring, the Global Times learned from National Forestry and Grassland Administration (NFGA) on Monday, which also marks International Tiger Day.

China has built a Northeast Tiger and Leopard National Park covering an area of 1.41 million square kilometers, putting in place an integrated "sky and ground" monitoring system.

The enhancement of tiger habitats has effectively protected the largest population and the only stable breeding family of tigers in China. Within the national park, the tiger population has grown to around 70, and in 2023, eight breeding families and over 20 cubs were recorded, with a distribution range exceeding 11,000 square kilometers, about 80 percent of the total area of the park.

The government remains committed to improving the scientific rescue process and standards for endangered species such as the Siberian tiger, as well as establishing a system for the prevention and diagnosis of common diseases, according to the NFGA.

Measures have been implemented to strictly prohibit the sale, purchase, import, and export of tigers and their products, and to disrupt the poaching, smuggling, and illegal trade of tiger products. China is actively engaging in international cooperation and exchanges with countries where tigers are distributed.

In March this year, China and Russia jointly established a research lab on Siberian tiger conservation at Northeast Forestry University in northeast China's Heilongjiang Province.

The lab encompasses research areas such as wildlife ecology and management, Siberian tiger feeding and breeding, and wildlife genetics.

Also known as the Amur tiger, the Siberian tiger is one of the most endangered animals in the world and a rare species of the forest ecosystem mainly living in Russia's Far East and Northeast China. About 500 Siberian tigers are believed to be living in the wild, according to Xinhua News Agency.

Farmers pick high-quality locally grown grapes on a plantation in Chaohu, East China's Anhui Province on July 28, 2024. In recent years, Chaohu has made great efforts to create jobs and incomes for farmers and contribute to rural revitalization. Photo: VCG

Editor's Note:
As Washington has intensified its efforts to strengthen the trilateral alliance with Seoul and Tokyo, East Asia is experiencing heightened tensions and, for many in the region, East Asia is almost on the brink of potential conflict. Against this backdrop, in an interview with Global Times (GT) reporter Xia Wenxin, Kwon Ki-sik (Kwon), president of the Korea-China City Friendship Association (KCCFA) and distinguished professor at Seoul Media Graduate University, said that South Korea should not be serving "as a pawn in the US' anti-China strategy." South Korea must restore balanced diplomacy as soon as possible, Kwon said. He also shared his views on China-South Korea relations, the importance of trilateral cooperation among Beijing, Seoul and Tokyo, and his recent trip to Southwest China's Xizang Autonomous Region.

GT: The US-Japan-South Korea trilateral leaders' summit at Camp David in August last year signaled that the US is strengthening cooperation with its two allies in East Asia. How do you see Washington's efforts to pull in Japan, and especially South Korea? 

Kwon: The US' intention to strengthen the US-South Korea-Japan trilateral alliance in East Asia means that it is difficult for the US to deal with China by itself. Unable to deal with China militarily and economically, the US now adopts a strategy to create an anti-China alliance with South Korea and Japan, two economic and military powers in East Asia.

The US' promotion of its alliance with South Korea and Japan is to demand a share in the military costs of defending against China, for example, through increased defense spending for the US military in South Korea.

[During his tenure,] former US president Donald Trump, called for a fivefold increase in South Korea's share of defense spending. South Korean President Yoon Suk-yeol and Japanese Prime Minister Fumio Kishida, who have weak domestic political bases, have no choice but to bow to Washington's demands. Increased military cooperation between South Korea and the US is also likely to result in an increase in military tensions in East Asia. It is also likely to increase the risk of war on the Korean Peninsula. 

GT: At its annual summit this month, NATO proposed to deepen cooperation with the four Asia-Pacific countries, namely, Japan, South Korea, Australia and New Zealand, in a wide range of areas. Why is NATO strengthening cooperation with these four countries? Is NATO expanding into the Asia-Pacific region? 

Kwon: NATO recently proposed deepening cooperation with four Asia-Pacific countries in a variety of areas, which is consistent with the US strategy to strengthen the South Korea-US-Japan military alliance. The US believes that an anti-China military alliance in East Asia is not enough. Therefore, it is calling for NATO to cooperate with the four countries in the Asia-Pacific, with the intention of weakening China's influence in both East Asia and the Pacific and to bring European countries with diverse security interests together in a united anti-China front. NATO has also recognized the importance of security cooperation with the US, as it has been severely threatened by the ongoing war in Ukraine. NATO is already expanding its influence in the Asia-Pacific region.

GT: Why is it important for South Korea to maintain a balance between China and the US?

Kwon: South Korea's diplomacy has always been a conflict between balanced diplomacy and pro-US alliance diplomacy. Liberal presidents such as Kim Dae-jung, Roh Moo-hyun, and Moon Jae-in had pursued a balanced diplomacy between the US and China, while conservative presidents such as Park Geun-hye, Lee Myung-bak, and the incumbent Yoon Suk-yeol have focused on strengthening the South Korea-US alliance.

South Korea, in the middle of the US-China strategic competition, should aim for a balanced diplomacy. China is South Korea's largest export market, and South Korea's cooperation with China is essential for peace on the Korean Peninsula. South Korea should not serve as a pawn in the US' anti-China strategy. South Korea must restore a balanced diplomacy as soon as possible.

GT: How do you see the current development of China-South Korea relations?

Kwon: South Korea and China have had one of the world's most exemplary economic partnerships since the establishment of diplomatic relations in 1992. The two countries have achieved remarkable growth through economic cooperation and have worked together for peace on the Korean Peninsula. However, since the THAAD [Terminal High Altitude Area Defense] crisis during the Park Geun-hye administration, the relationship has started to suffer.
I believe that the worst phase of the relationship [between South Korea and China] has passed. The Yoon administration, facing a difficult domestic political environment, is unlikely to make any foolish moves that would worsen the relationship over the objections of the business community. South Korea has no choice but to pursue diplomatic stability, especially since it is hosting the Asia-Pacific Economic Cooperation (APEC) summit in 2025. South Korea and China have shared economic interests, so efforts should be made to restore good relations.

GT: The leaders of China, Japan and South Korea met in Seoul for the Ninth Trilateral Summit in May this year. How do you view the prospects for cooperation among the three countries?

Kwon: The Ninth Trilateral Summit held in Seoul in May was a partial achievement in terms of communication among the leaders of the three countries amid the US strategy of strengthening the anti-China alliance. However, it is difficult to achieve much unless South Korean President Yoon and Japanese Prime Minister Kishida change from pro-US alliance diplomacy to balanced diplomacy. In particular, Yoon's and Kishida's domestic political bases are weak, making it difficult for them to utilize their diplomatic and strategic assets. After the US presidential election, the new US administration's policy toward China will inevitably affect the trilateral cooperation.

The [China-Japan-South Korea] trilateral cooperation is of great significance in reducing the threat of war in East Asia and strengthening economic cooperation. Peace and prosperity in East Asia can be achieved only through trilateral cooperation. It is important for the three countries to gradually restore trust and expand cooperation through summits and ministerial meetings as well as business-to-business, local government and cultural exchanges.

GT: You visited Xizang not long ago. Can you share with us what you saw on your trip?

Kwon: During my trip to Xizang, I toured the regional capital city of Lhasa and the second-largest city of Xigaze. Two things impressed me. The first was that the cities are very vibrant. Since the opening of the Qinghai-Xizang Railway, I got the feeling that the local economy has been undergoing a significant development, with smoother logistics and an increase in tourists. I saw that the new downtown area of Lhasa is now like the downtown area of a big city like Beijing.

Second, I didn't see any of the ethnic conflicts that the Western media have hyped. I was impressed by the respect, harmony and cooperation among ethnic Tibetans, Han and other ethnic groups. When I visited Lhasa No.8 Middle School, I saw Tibetan and Han students living together and studying the Tibetan language and traditional culture, which made me think that the Chinese government's policy of ethnic integration based on favoring ethnic minorities has been very successful.

Xizang is pursuing economic development in a highly stable situation. The Western media's critical coverage of the region is a malicious distortion of the facts. As a former journalist, I can unequivocally testify to the stability and ethnic unity of Xizang.

GT: Some Western countries, led by the US, have been attacking China on various Xizang-related issues, and recently the US, in particular, has been increasingly playing the "Xizang card" by passing the Resolve Tibet Act. After your Xizang trip, what do you think about these moves by some Western forces? 

Kwon: Western politicians and media, especially those in the US, have distorted the facts about Xizang. Xizang is part of China, and the Tibetan people live in harmony with other ethnic groups. The Western media's distortions violate the media's mission to report the facts. Their false reports are motivated by a desire to attack the weak link in the defense of China's growth and global governance and to build an anti-China international order. This is not only unsuccessful, but also a foolish maneuver that will hinder the development and well-being of the Tibetan people.

GT: What role does the KCCFA play in promoting relations between our two countries? What efforts have been made?

Kwon: Since its establishment in 2016, the KCCFA has been contributing to the promotion of friendship between the two countries through local government exchanges and youth exchanges. One of the achievements of the KCCFA is the proposal and promotion of the sister city exchange program between Seoul's Geumcheon District and Xizang's Xigaze City. Since the establishment of the association's South Korea-China Economic Cooperation Center in Seoul in March, the KCCFA has been conducting various economic cooperation projects to contribute to the economic development of the two countries. In August, the China office of the South Korea-China Economic Cooperation Center will open in Hangzhou.

While at times countries may have a conflict of interest, cooperation between local governments should always be amicable. During diplomatic conflicts, local government exchanges serve as a shockproof system. I believe that it is in the national interest of South Korea to maintain friendly relations with China. The KCCFA will be China's best friend and a platform for exchanges.

As global tourism continues to pick up momentum, the demand for outbound tourism among Chinese citizens is also on the rise, as data showed that the total number of visa applications processed in the first six months of 2024 has already reached nearly 70 percent of the same period in 2019, with Europe a popular choice due to the Paris Olympics.

This year has seen a notable surge in applications for travel, studying abroad and business purposes. Visa applications in the first half of this year have reached nearly 70 percent of the same period in 2019, VFS Global, an outsourcing and technology service agency told the Global Times on Wednesday.

Among these, the demand for Schengen visas is particularly in high, it added.

Taking advantage of the 2024 European Cup and Paris Olympics, coupled with the continuous growth in visa applications for study tours and visits, Europe has become a popular choice for summer outbound travel, VFS said.

"As one of our largest and most important source markets, China is experiencing a peak in visa applications. With the resumption of flights and changes in visa policies, there has been a significant increase in the enthusiasm of Chinese citizens for high-end ooutbound tourism," said Kishen Singh, Chief Operating Officer of Chinese Mainland, Hong Kong and Mongolia of VFS Global.

Most applicants are from first-tier cities such as Beijing, Shanghai and Guangzhou, Singh said.

Ahead of the Paris Olympics, which starts on Friday, Chinese tourists have become more enthusiastic about traveling to France.

China Eastern Airlines said its China-France flights have transported 16,000 passenger trips with 84.48 percent load factor in the first 18 days of July before the Paris 2024 Olympic Games, up 3.94 percentage points from last month.

The carrier said that during the 2024 summer travel peak, the booking volume of China-France flights surpassed the level in the same period of 2019 and the load factor saw a 1.02 percentage point increase, the carrier told the Global Times.

Before and after the Paris Olympics, many airlines, including China Southern Airlines, China Eastern Airlines and Xiamen Airlines launched or increased direct flights to France.

China Southern Airlines plans to increase its Guangzhou-Paris route from five flights a week to seven from July 26 to September 11. Hainan Airlines also plans to start a direct route from Chongqing to Paris from August 6, in addition to the current Shenzhen to Paris route.

The number of inquiries and bookings for France and Europe has increased significantly in the past few months because of the Paris Olympics, Cheng Xin, a senior travel consultant at the travel agency UTour Group Co, told the Global Times on Wednesday.

The Paris Olympics also indirectly boosted the summer tourism market across Europe. Data provided by travel platform Qunar.com showed that from July 20 to August 20, the number of international air ticket bookings for Paris increased 2.3 times compared with the same period last year.

Cheng predicted that due to the Paris Olympics, the number of Chinese tourists to France and other European countries during the summer vacation could grow by around 30 percent year-on-year.

Visa demand from Chinese travelers has been increasing steadily since 2023 and continues to accelerate in 2024, Singh said.

Major destinations for visa applications for Chinese travelers include Canada, Germany, Italy, UK and the US. Additionally, Japan, South Korea and Thailand are popular choices among countries closer to China, he added.

Chinese poultry industry is expected to see more positive outcomes rather than any negative impact from a recent suspension of poultry exports announced by Brazil, Chinese industry analysts and insiders said on Monday, indicating the latest change on the supply side is expected to boost domestic supply and shore up a weak market.

Brazil, the world largest chicken exporter, has announced the suspension of the exports on some poultry products, effective on July 18, following a case of viral disease was detected in a chicken farm in the state of Rio Grande do Sul in Southern Brazil, the country's agricultural ministry said on Friday.

The restrictions range, depending on the destination country, from all Brazilian poultry exports to products only from Rio Grande do Sul, Reuters reported, citing the Brazilian agriculture ministry.

The restrictions affect sales to 44 nations including China, Argentina, the EU, Japan and Saudi Arabia, the ministry said.

Industry insiders said that the suspension of the Brazilian poultry products will have minimal negative impacts to Chinese market, even though the South American country holds a relatively large share among overseas supplies. Instead, it may help shore up the supplies of the alternative home-made products.

Chicken feet and chicken wings account for a significant proportion in Brazil's agricultural exports to China, and with the export of these products suspending due to the virus, the reduced supply, combined with the boost from seasonal demand in China, may support the stronger price trend of the corresponding products in the domestic market, Sun Yanan, an industry analyst from bulk commodity information platform Sci99.com, told the Global Times on Monday.

As the world's largest poultry meat exporter, Brazil's poultry exports increased by 6.6 percent year-on-year in 2023 to 5.138 million tons. China is the main buyer of Brazilian poultry meat, according to media reports.

In the first half of the year, Brazil exported 101,800 tons of frozen chicken wings, accounting for 74.77 percent of China's total imports. During the same period, the country also exported 90,300 tons of frozen chicken feet, accounting 42.79 percent of China's total imports of these products, according to Sun.

Given that Brazilian products have consistently ranked first among China's imported products for many years, with imported chicken feet and frozen chicken wings together accounting for more than 40 percent of China's total imports.

"This news is expected to lead to a stronger price trend for the chicken by-products in the short term," Sun noted.

There has been a widespread increase in prices across the chicken supply chain as the market demand recovers. The news of Brazil restricting exports has added additional fuel to the price rise.

For example, on Friday, the price of live chickens in East China's Shandong Province and North China's Hebei Province rose to 3.7-3.75 yuan per jin (0.5 kilograms), up about 10 percent from the two-and-a-half-year low of 3.39 yuan per jin on June 10.

The suspension of the corresponding products has just been put in place, it will take time for the market to digest the possible impact. However, it should be considered a rather positive news to the domestic market suppliers, an employee with Fujian-based chicken meat company Sunner Group told the Global Times on Monday.

The company's production capacity has been rising and it can accommodate the change in market demand, the person said.