Ministry of State Security unveils hacker group supported by ‘Taiwan independence’ forces

China’s Ministry of State Security (MSS) on Monday unveiled a hacker organization called "Anonymous 64," saying that it was an “internet army” supported by “Taiwan independence” forces and has frequently launched cyberattacks against the Chinese mainland and Hong Kong and Macao Special Administrative Regions, attempting to infiltrate portals, outdoor electronic screens, and online television to spread disinformation and disrupt public communications.

National security agencies have identified individuals involved in the related cyberattacks, including three active members, whose names and photos have been disclosed. Legal investigations have been launched against the three individuals, the ministry said in a release on Monday.

The organization behind "Anonymous 64" is a cyber-environment analysis center under the “Information, Communications and Electronic Force Command.” This center is specifically responsible for conducting cyber cognitive warfare and public opinion warfare against the mainland. In June 2023, the center registered social media accounts under the name "Anonymous 64" and wantonly carried out cyberattacks and disinformation activities, MSS said in the article.

The “Information, Communications and Electronic Force Command” was established in June 2017 as the "fourth branch" of the Taiwan authorities and was restructured in 2022 as a direct agency of the “defense department” of the island. It primarily handles electronic warfare, information warfare, cyber warfare, and military line maintenance, serving as the main force for the island of Taiwan's cyber operations against the mainland.

Since its establishment, the “Information, Communications and Electronic Force Command” has launched various infiltration and sabotage activities against the mainland, posing a significant threat to cybersecurity. It targets areas such as the mainland's defense industry, aerospace, and energy infrastructure for cyberattacks, aiming to steal sensitive data and gather intelligence for the Taiwan authorities. It also frequently distorts online public opinion, employs internet trolls, exacerbates conflicts, and incites divisions for its own gain, according to MSS.

Since its establishment, the "Anonymous 64" has posted over 70 updates on social media, using so-called achievements to attract attention. The targets they claim to have attacked include outdoor electronic screens, vending machines, online television, as well as the websites of news media, airlines, and universities, attempting to hype a false image of severe?vulnerabilities in mainland cybersecurity.

However, investigations by national security agencies?revealed that many of the "achievements" showcased by "Anonymous 64" were exaggerated, with most targeted websites being counterfeit or zombie sites.

For instance, on August 2, when a small internet company’s website was attacked by "Anonymous 64" because it linked to several universities' official forum logins, the organization falsely claimed it had “gained control of the official forums of 40 universities in the mainland."

National security agencies also remind developers and operators of internet audio-video systems, portal websites, and internet users to implement cybersecurity measures, timely update and upgrade systems, close technical vulnerabilities, enhance password strength, and strengthen inspections to prevent various cyberattacks.

"We urge netizens not to believe or spread rumors, and to promptly report any cyberattacks or disinformation activities to national security agencies or relevant departments,” read the MSS article.

The ministry said in the article that national reunification is an inevitable historical trend. Taiwan authorities' attempts to provoke and pursue “independence” and seek confrontation with the mainland are bound to fail.

National security agencies will firmly implement a comprehensive national security strategy, enforce laws against "Taiwan independence" separatists engaging in separatism and incitement, and resolutely combat all "Taiwan independence" schemes to contribute to the complete reunification of the motherland, said MSS.

Technology unlocks Han Dynasty lifestyle at Mawangdui site for the public in reality

Editor's Note:

Fifty years ago, not only the archaeological community but also ordinary people were stunned by the excavation of the Mawangdui Han Tombs. Among the findings was a remarkable discovery known as China's "Sleeping Beauty" (Lady Xin Zhui), an over 2,100-year-old lady who looks nearly as good as she did when she was buried after her death at the age of about 50, during China's Western Han Dynasty (206BC-AD25). The world has marveled at the mystery behind her body, as well as the numerous precious treasures unearthed from the tombs, including textiles, bamboo and silk manuscripts.

In this Mawangdui trilogy, the Global Times Culture Desk explores how digital technologies have brought the public closer to the heritage and how the "Mawangdui IP" was revived by the creative industries. This is the third installment.
Although there are many sites in China that can embody the country's Han Dynasty (206BC-AD220) history, Mawangdui is the most exceptional one mainly due to its mysterious finds like the 2,100-year-old mummified aristocrat that is known as Lady Xin Zhui.

Three excavations on the site were carried out from 1972 to 1974. At that time, such excavations brought a research craze to the academic field worldwide. Thanks to new means such as the digital technology, such a scholarly craze in the past 50 years has been extended to the public, especially among the young people.

Decoding mystery

Lady Xin Zhui's silk garments are Mawangdui Han Tombs' stellar artifacts. Due to their brittle and fragile nature, many original pieces are now only stored as archives at the Hunan Museum in Changsha, Central China's Hunan Province. To connect the heritage with people, making replication for public display was a crucial task. The task engages both technological tools and the ingenuity of textile experts like Yang Jiyuan.

Yang, a restorer of ancient silk textile in Nanjing, East China's Jiangsu Province, has replicated seven Lady Xin Zhui's garments since 2016. She told the Global Times that the printed and painted floss silk-padded gauze robe was one of the most challenging tasks.

Through examination using a microscope and creating 3D modeling of the original "printed and painted gauze robe," Yang revealed to the Global Times that the piece's air-like fabric actually consists of seven sheerest silk layers, and the thickness of each one of them is like "one-third of the tissue's thickness."

Matching such almost disappearing silk textiles together was not the most challenging task. Yang told the Global Times that the "painting" process was even harder since the colors should keep looking "not too vibrant and new."

She said the gauze needs to be "1:1 the same to the original one" that has more than 2,000 years of history. Thanks to advanced technologies that can decode the ingredients and composition of ancient fabrics, Yang discovered that Lady Xin Zhui's garment was painted in natural mineral dye and was covered with an extra "glue-like substance" to make it look understated while in a good shape. She said that she was only one of the heritage protectors in China, who has "felt the responsibility to show the public a legacy's authentic aesthetics and story."

"Technological tools are our assistants. They ensure the history we deliver to the public is correct," Xiang Benshan, a restorer of underwater ceramic relics, told the Global Times.

Cross-field collaborations

Other than the research sector, technological innovations are now diversely applied on shows that relate to the Mawangdui Han Tombs.

Currently, a blockbuster show called The Art of Life: Multimedia Exhibition of Mawangdui Han Culture is ongoing at the Hunan Museum. The immersive digital project, a collaboration between the Hunan Museum, Digital Library of China, and the Harvard FAS CAMLab, presents a new model for showcasing the Mawangdui Han Tombs through multimedia installations.

The show includes three thematic sections such as "Time and Space." They highlight the artistic grandeur and spiritual reflections of ancient Chinese, giving insight into their concepts of life, death and afterlife.

Lü Chenchen, associate director of Harvard FAS CAMLab, told the Global Times that the future of Mawangdui-themed exhibitions lies in global academic collaboration and the integration of advanced technologies such as VR tools and interactive animations.

"By partnering internationally, institutions can leverage cultural IPs like the Mawangdui Han Tombs and digital tools to broaden access to historical knowledge from different perspectives and different disciplines," Lü told the Global Times.

If the research lab and the museum are where the Mawangdui IP provides intellectual inspirations to people, then the site's cross-field collaborations with the cultural and creative industries have made the heritage a joy of people's everyday lives.

The Hunan Museum recently collaborated with a food brand to launch a "Mawangdui spicy strip," one of the favorite snacks by young people that is also known as La Tiao.

At the museum's "digital Han lifestyle experiencing center," symbols of relics like the round lacquer plate and Lady Xin Zhui's garments have been printed on products like scarves, fans and cakes.

The Netherlands: 10 films staged at the 2024 Netherlands Film Festival, featuring Dutch culture

The Embassy of the Kingdom of the Netherlands and the China Film Group Corporation jointly launched the 2024 Netherlands Film Festival in Beijing on September 12.

The film festival selected 10 high-quality Dutch films in recent years to show Chinese audiences the real and vivid social landscape of contemporary Netherlands and the unique Dutch customs and practices. All of these films are premiered in China.

The 10 films screened are from various genres, covering a wide range of topics including the inspirational growth of teenagers, the emotional expression of senior citizens, the social concern of vulnerable groups, and family education. The movies interpret the true meaning of "love" from multiple emotional aspects such as family, love, and friendship.

Arriving at the ceremony by bike, André Haspels, the Netherlands Ambassador to China, said that in both China and the Netherlands, bicycles are far more than just a means of transportation. They also symbolize sustainability, health, team spirit, and a common commitment to building an inclusive society.

After the opening film was screened, director Camiel Schouwenaar and screenwriter Job Tichelman also visited the scene to share wonderful behind-the-scenes stories. Many audiences expressed their love for the film and were touched by the real power of persisting in dreams.

The Film Festival will run until October 31 and will be screened in seven major cities in China including Beijing, Shanghai, Guangzhou, Shenzhen, Xiamen, Chengdu, and Nanjing.

Mexico: National Day of Mexican Cinema 2024 celebrated

In commemoration of the National Day of Mexican Cinema 2024, the Embassy of Mexico in China will screen Cronos, a movie directed by Oscar-winning director Guillermo del Toro at the Beijing Yuan Museum on August 31. 

In 1536, during the Inquisition, an alchemist builds a mysterious and sophisticated device named Cronos to provide eternal life to the owner in Veracruz, Mexico. 

In the present day, antiques dealer Jesus Gris finds Cronos hidden inside an ancient statue while cleaning it with his granddaughter Aurora. 

He accidentally triggers the device and soon his wife Mercedes and he note that he has a younger appearance. 

Out of the blue, the stranger Angel de la Guardia visits Gris' shop and buys the old statue. On the next day, Gris finds his shop trashed and Angel's card on the floor. 

He pays a visit to Angel who introduces him to the eccentric millionaire De la Guardia that explains the healing power and the eternal life bestowed by Cronos

Angel is sent by De la Guardia to hunt down Gris to get Cronos no matter the costs.

UAE: First UAE-China Think Tank Forum held in Beijing

The UAE Embassy in China hosted the first UAE-China Think Tank Forum with more than 100 experts and think tank leaders in Beijing from August 29 to 30, marking the 40th anniversary of the establishment of diplomatic ties between the UAE and China.

In his speech at the opening ceremony, Ambassador of the United Arab Emirates (UAE) to China Hussain bin Ibrahim al Hammadi said that UAE-China relations, under the leadership of the state leaders, are witnessing remarkable progress across economic, trade, cultural, political, and diplomatic spheres.

Themed "Together to build a shared, sustainable, and ambitious future," the event aimed to bring together the wisdom of the academic and research communities, and build a platform to promote cooperation and dialogue between UAE and Chinese think tanks. The forum also explored potential opportunities for cooperation between the two countries' leading think tanks.

AIGC expands footprint in Chinese film industry, enhancing efficiency, creativity

The integration of AI-generated content (AIGC) into the film industry has taken a step forward with the launch of the Kling AI "Movie Co-Creation Project" on Monday. This initiative brings together nine prominent Chinese directors, including Li Shaohong and Yu Baimei, to create nine short films using AIGC. It marks China's first large-scale effort to apply AI-powered video-generation models to cinematic content creation.

Kling AI's ability to generate videos from images, control motion, and manage camera angles not only enhances production efficiency but also elevates the quality of cinematic output. The platform's broader application potential underscores its significance beyond experimental projects.

The technology's importance is further highlighted by the Beijing International Film Festival's recent announcement of its first AIGC filmmaking course. This course is designed to equip new filmmakers with the skills to integrate AI technology into the creative process, blending technical expertise with emotional storytelling.

"Technological innovation has always been part of cinema's evolution," Shi Wenxue, a veteran film critic and a preliminary judge in the main competition section at the Beijing International Film Festival, told the Global Times on Tuesday.

He emphasized how tools like AIGC are accelerating the filmmaking process by streamlining scriptwriting and project planning.

"Many of my colleagues are primarily using AIGC for technical tasks like previs (previsualization). Previously, we had to build preview models using tools like LEGO blocks; now AIGC offers a more direct and effective solution," Shi noted.

While AIGC excels in certain film genres such as animation, sci-fi, and archaeology-themed productions, Shi also noted that it is unlikely to fully replace human creativity or the emotional depth that actors and filmmakers bring to their work.

"AIGC serves as a support tool rather than a core replacement in the filmmaking process," Shi said.

Major players in the film industry have already begun to recognize the advantages offered by AIGC. Domestically, productions like the short narrative series Sanxingdui: Future Apocalypse, and CCTV's fully AI-produced micro film Chinese Mythology demonstrate how AI is driving advancements in the domestic film sector, particularly in the emerging micro drama industry.

Internationally, the influence of AIGC is also growing. Glenn Marshall, an AI artist, won the Jury Award at the 2022 Cannes Short Film Festival with his AI-generated film The Crow, highlighting the global reach and recognition of AI's role in creative content creation.

It's worth noting that the rise of AIGC has also sparked debate, particularly in industries that traditionally rely on human creativity. The 2023 Hollywood strikes, initially targeting employees' benefits, were also driven by concerns that AI could replace human roles, with issues around compensation and job security taking center stage.

"Don't see them as competitors or enemies; they are your work partners. Every technological breakthrough has benefited artistic creation, allowing creators' visions to be realized more perfectly and accurately. At the same time, AI also places higher demands on film professionals - they must have ideas that surpass it," Chinese director Liu Jiacheng said in an interview with the Xinhua News Agency.

Experts say as AIGC continues to develop, it will drive the next wave of innovation in the film industry. Its ability to enhance productivity and reduce costs could unlock a new era of efficiency, particularly in the rapidly expanding micro drama sector.

State Grid Bortala Power Supply Company: Sayram Scenic Area Achieves Green Operation

The natural scenery of Sayram Lake is magnificent and beautiful, with its green waves rippling. The tourism popularity is increasing year by year.
In order to protect the ecological environment of Sayram Lake, in recent years, the scenic area has implemented a ban on grazing on 164,500 mu of grassland in the core area and relocated more than 900 herdsmen households and 200,000 livestock. 80 kilometers of fences have been set up around the lake and 12 management and protection stations have been established to prohibit tourists from entering the glacier and permanent snow area.
The area of Sayram Lake scenic area is 1,314 square kilometers. 21 power supply lines with a voltage level of 10 kV and above provide continuous power for the scenic area. In 2022, Sayram Lake was built into the first all-green electricity scenic area in Xinjiang. A power supply ring network was formed by means of buried cables. Charging piles were set up around the lake, an ecological parking lot was built, and low-carbon tourism transportation tools such as electric vehicles, bicycles, and hybrid vehicles were used.
The annual electricity consumption of Sayram Lake scenic area is 36 million kilowatt-hours. The development of the scenic area takes ecological tourism and green tourism as the main line. The "full electrification" transformation covers all aspects such as travel, accommodation, and play. More than 770 electricity customers such as hotels, shops, and food courts all adopt clean and stable power supply. The past coal-fired heating method has become history.
This year, State Grid Bortala Power Supply Company has explored new ways to consume clean energy to help the green development of Sayram Lake. The "integrated photovoltaic storage and charging" demonstration project is promoted in the scenic area. Based on the existing green electricity, the construction of distributed photovoltaic microgrid is piloted and the application of V2G charging piles is promoted. Sayram Lake scenic area is built into a zero-carbon scenic area model from the four aspects of "source, grid, load, and storage".

Deep focus: China’s ‘small-town literature’ goes viral on social media, reflecting people’s nostalgia for hometown amid rapid urbanization

Amid the ongoing discussion over "city, not city," a viral phrase that illustrates China's urban zeitgeist, a new trend has captured the attention of many smaller cities and counties, taking Chinese social media by storm. On the internet, the emergence of "small-town literature" has ignited a resurgence in photography: In dimly-lit and quaint streets, weathered buildings, and with young Chinese people clad in vintage clothing, an attempt is being made to convey the emotions of loneliness through their expressive eyes and body language, accompanied by captions like "can't escape, can't see through." Behind the scenes, a multitude of photographers and models from urban areas are venturing into these smaller cities and counties across China, seeking to capture the essence of a bygone era. While traditional portrayals of small Chinese towns in literature and film often depict desolation and nascent vitality, the current trend of small-town literature has been criticized for its gloomy portrayal of reality. Despite this, it has quickly gained popularity online, with millions of views and shares on platforms such as Sina Weibo and Douyin. As the trend continues to gain momentum, questions arise about the emotional appeal of small-town literature and what it signifies in the process of urbanization in China. What does the concept of "county town" mean to individuals of different age groups? And amid the frenzy of templated creations, can the true essence of Chinese county towns still be captured and appreciated? These are just some of the questions that linger as the allure of small-town literature continues to captivate audiences across the nation. Trending on social media Photography blogger Jewey Li, a small-town literature trend pioneer, never expected his and his students' photos would spark such widespread discussion on social media. One of the most interactive small-town pieces of literature on Douyin is a group of photos from Li's student Yunier (screen name), in which the most eye-catching image is that of a girl with a beautiful face in a blue qipao sitting on the threshold of an old-fashioned barber shop, looking pensive. The post gained more than 2.32 million likes and more than 416,000 shares. Clicking on the comment section, people can discover a variety of plot twists in the "micro stories" created by netizens. Through the power of visual storytelling, these photos have inspired netizens and bridged the gap between photography and literature. Zhang Yiwu, a cultural studies professor at Peking University, explained that small-town literature is not just about literary creation, but also a cultural phenomenon that resonates with the masses. Li posted a thread on the popular lifestyle app Xiaohongshu titled "How to shoot small-town literature": You should shoot her melancholy yet determined gaze in an old rented house, shoot his confusion and uncertainty in the crowd, and shoot the couple's bittersweet longing for each other despite their love for the reality. He also emphasized in the post that "small-town literature is not criticism but nostalgia. Those backward-looking figures, unfulfilled vows, and the bittersweet memories together form Chinese people's most precious memories of the old hometowns." This post, having struck a chord with many, seems to indicate that in the current popular trend of small-town literature, the concept of the "county" has been refined into a set of replicable audio-visual language symbols, a simple and easily transmitted expression template. While the content of small-town literature may focus on the county, the narrative style of the creators is distinctly modern and social media-driven. Through specific poses and carefully chosen backgrounds, these works tell a story that resonates with viewers on a deep emotional level," Zeng Chi, a research fellow at the Renmin University of China, told the Global Times. On Chinese social media, small-town literature offers a variety of emotional connotations and fulfills different needs for its audience. Some netizens expressed how they find solace in the nostalgic atmosphere and stories of county life, while others criticize the portrayal of Chinese counties as oppressive and decadent. Despite the debate, the popularity of county literature has brought Chinese counties into the spotlight, sparking discussions on various aspects of county life. In the midst of this public opinion frenzy, trending topics about China's county life have emerged, such as questions about the standard of living, young people's daily expenses, and the experiences of girls returning to work in the county. This newfound interest in county life marks a shift in Chinese social networks, where previously, the focus was on glamorous city life. "The rise of small-town literature signifies a shift toward embracing a different lifestyle in China," Zhang said. A wide range of empathy When most Chinese people can understand small-town literature, it means that the cultural symbols in this phenomenon are popular, Zeng said. Most Chinese people have intimate relationships with counties and county-level cities. Official data showed that as of the end of 2021, China had a total of 1,866 counties and county-level cities, roughly twice as many as prefecture-level cities and above, with a permanent resident population of some 250 million, or nearly 30 percent of the total number of people living in urban areas nationwide. China has undergone a drastic urbanization process in recent decades. The urban population has almost doubled from 456 million in 2000 to 902 million in 2020. Countless young people now live in cities while carrying memories of their hometowns. Li, 30, told the Global Times that he started creating small-town literature because he wanted to have a "spiritual return" to his hometown of Yichun, a third-tier city in East China's Jiangxi Province. Li spent his childhood in a state-owned factory in Yichun, where both his parents were factory workers. The factory began to decline in the early 2000s, and after his parents were laid off, they opened a small grocery store. In around 2017, the factory area started to be demolished along with the family's store. They moved into a high-rise building, prompting Li to consciously capture images related to his earlier life. Li said his narrative inspiration came from his family's experience of running the grocery store for 20 years. "My mother also loves beauty and wanted to travel, but she never left Yichun until I had the ability to earn money independently, guarding the place that supported our family's livelihood." Compared to big cities, the lack of talent development mechanisms and fewer job opportunities in small cities prompted Li's complex emotions toward his hometown at a young age. The contradiction between the familiar hometown in one's memory and the ideal pursuit of youth is the core that Li and many small-town literature photographers want to express. When Li left Yichun and traveled around China, he gradually felt the unique beauty of his hometown. He chose to use his hometown as the inspiration behind his creations, looking back and paying tribute to the familiar, stable, and predictable life he once knew. "Our camera shooting has a script, operated according to the logic of movies. We hope more people can resonate and even stimulate more imagination in the process of viewing." Zeng believes that the initial rise of county literature stemmed from people's nostalgia. The people who currently have such imaginations are likely to come from big cities; young people who are equally keen on using social media and have enough to live comfortably, Zeng noted. "It is more likely that a group of young people who have already left the county and are living in the city have such imaginations. At a time in the course of their hard work to make a living, they easily immerse themselves in the carefree small county town of their childhood, imagining what it would be like to live there now," he said. Step into reality "I can't guarantee that the life in small-town literature is real, but its popularity indicates that many people must be imagining themselves living in such a town, experiencing days of either pain or healing," Zeng said. Zeng pointed out that in the era of image-based social media, when people interact online, they often overlook the "performative nature" of social media, thus projecting too many emotions onto static images. Undoubtedly, in small-town literature, the county town represents a static intention, serving as a buffer zone between the countryside and the big city. It seems neither as brightly lit as the city with its concrete jungle, nor as simple as the countryside. It is within reach but never truly a place to settle in. Now Crow Jewey is teaching photography skills offline across China, creating various stories in different county towns. However, Crow Jewey is well aware that no single county can represent all of China's county towns, and no few labels can simply summarize the lives of millions of county residents. But it is heartening that under this trend, more Chinese people are willing to get closer to the real counties. These places are not backward and dilapidated symbols, nor are they places for pretentious whining, but rather a real world formed by countless vibrant individuals. During this year's May Day holiday, unlike in the past when tourists focused on famous scenic spots, many people now explore the "capillaries" of China's geographical map. According to a report from Ctrip, a major Chinese online travel booking platform, hotel bookings in China's counties and county-level cities during the May Day holiday increased by 68 percent year-on-year, outpacing the national average growth rate. As more people truly explore county towns, they find that there is no stark difference between big Chinese cities and county towns, especially due to the all-round rural revitalization prioritized by Chinese government, with bustling commercial streets and night markets can now be seen everywhere. There are also countless young people returning to county towns from big cities, sparking a wave of entrepreneurship to "speak for their hometowns" and driving the continuous deepening of the county economy. Zhang believes that exploring the consumption patterns on a county level is full of development prospects. In the process of urbanization, people's unprecedented demand for a sense of belonging to the county is projected on the cultural tourism market, he stated. "The popularity of small-town literature indicates that there is still certain room for improvement of spiritual needs in our society. However, to truly fill these gaps, it cannot rely solely on virtual hometowns. In the future, more tangible county town landscapes will be remembered by people," Zhang said.

Multi-energy complementary photovoltaic power generation project in full swing in Taizhou, Jiangsu

On August 30, at the pier of Bianzhuang Village in Yuxi Town, Jiangyan District, Taizhou City, East China's Jiangsu Province, the multi-energy complementary photovoltaic power generation project was under intense construction. The sound of machinery echoed, vehicles shuttled back and forth, and workers enthusiastically carried out various tasks, including pile driving, foundation pouring, support installation, and photovoltaic panel installation, all in an orderly manner. The construction was in full swing.

The project is planned to cover a water area of 2,531.66 acres (1,024.55 hectares), with 18 sub-photovoltaic systems to be installed. Using 580Wp monocrystalline silicon modules, the total capacity will reach 154.128 megawatts. The project adopts an innovative model that integrates photovoltaic power generation with aquaculture, building photovoltaic power stations over fish ponds to create a "power generation above and aquaculture below" system. This approach plays an irreplaceable role in improving the local ecological environment, providing employment for local residents, and contributing to rural revitalization by achieving both ecological and economic benefits.

To accelerate progress, the State Grid Taizhou Power Supply Company and Datang Taizhou Thermal Power have established a coordination mechanism, offering "one-on-one" services and closely monitoring the project's implementation. They also provide technical assistance to meet the diverse needs of customers and fully support the grid connection, acceptance, and operation of Taizhou's first multi-energy complementary photovoltaic power station.

Once fully operational, the project is expected to generate approximately 180 million kWh of clean energy annually, saving 72,000 tons of standard coal and reducing carbon dioxide emissions by 179,000 tons. This will create a win-win situation, enhancing both environmental and economic benefits. It is also of great significance for the region's efforts to meet the "dual carbon" goals, strengthen industrial support, and boost competitiveness.

Nearly half of US companies call for lowering tariffs on Chinese goods: AmCham Shanghai survey

Nearly half of surveyed US firms have called for Washington to lower tariffs on Chinese goods, according to a latest business environment report on Thursday.

Chinese experts noted that the US government’s actions have persistently undermined fair and free trade, forcing American companies to adopt less-than-optimal growth strategies in an atmosphere of cascading uncertainty, while businesses are inclined to operate in stability.

“When asked how the US government could support foreign firms in China, 48 percent [of US firms] suggested it reduce tariffs on Chinese goods,” read the 2024 China Business Report released by American Chamber of Commerce in Shanghai (AmCham Shanghai) on Thursday.

“Our member companies have acknowledged [Chinese] government efforts to improve the regulatory environment,” Eric Zheng, president of AmCham Shanghai, said in the report, noting that geopolitical uncertainties are weighing more than ever.

“We respectfully encourage both governments to continue to engage in bilateral talks so as to stabilize the relationship,” Zheng said.

Tariffs have indeed become a major disruptive factor in China-US economic and trade cooperation, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Thursday.

The US government has continued to undermine fair and free trade, including the repeated imposition of additional high tariffs on Chinese goods, which has had a significant impact on American businesses, Zhou said.

The lack of stability in trade is affecting corporate decision-making. In this climate of uncertainty, businesses are more inclined to seek stability in China, Zhou noted.

Exactly half of respondents saw higher business revenues in 2023 than in 2022, with the rate highest for the retail sector and lowest for the manufacturing sector, the survey with 306 respondents showed.

Revenue expectations for this year are cheerier, with 54 percent of members expecting revenues to rise compared with last year, though only 37 percent expect China revenue growth to outpace global growth in the next three to five years, the report said.

A higher rate of the members this year noted improvements in government policies and regulations toward foreign companies and more transparency in the regulatory environment. Meanwhile, nearly one-third said that China’s enforcement of IP rights has improved, read the report.

Data from Chinese Ministry of Commerce showed that China saw the establishment of nearly 32,000 new foreign-invested enterprises from January to July, an increase of 11.4 percent year-on-year. This indicates that foreign investors remain largely optimistic about the long-term prospects of investing in China, the ministry said.

US electric car producer Tesla broke ground on another mega factory in Shanghai in May, marking the company’s first energy storage factory outside the US to manufacture its energy storage batteries known as Megapacks.

At the ongoing 2024 China International Fair for Trade in Services (CIFTIS) held in Beijing, a total of 85 countries and international organizations set up exhibits and hosting events. Over 450 Fortune 500 companies and industry leaders participate in-person, with more than 100 activities scheduled and over 200 integrated innovation results to be announced. Tesla has participated in the CIFTIS for eight consecutive years.

China’s policies on openness and efforts to enhance regulatory transparency are boosting foreign companies’ confidence in their future development in the country. The continuous recovery of China's economy is providing businesses with higher profits, which is also a key reason why many are expanding their investments in China, Zhou said.