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Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Monday, 1 September 2025

Global power converge in Tianjin: SCO summit

 China hosts a star-studded summit to showcase its glowing influence


In this photo provided by Indian Prime Minister's Office, Indian Prime Minister Narendra Modi, left, and Chinese President Xi Jinping, right, hold a meeting on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Tianjin, China Sunday, Aug. 31, 2025. (Indian Prime Minister's Office via  AFP  https://www.youtube.com/watch?v=ZfDuPX3p9Y0

President Xi Jinping gathered the leaders of Russia and India among dignitaries from around 20 Eurasian countries for a showpiece summit aimed at putting China front and centre of regional relations.

Security was tight in the northern port city of Tianjin, where the Shanghai Cooperation Organi­sation (SCO) summit is being held until today, days before a massive military parade in the capital Beijing to mark 80 years since the end of World War II.

The SCO comprises China, India, Russia, Pakistan, Iran, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Belarus – with 16 more countries affiliated as observers or “dialogue partners”.

Russian President Vladimir Putin touched down in Tianjin yesterday with an entourage of senior politicians and business representatives. 

Meanwhile, Xi held a flurry of bilateral meetings with leaders from the Maldives, Azerbaijan, Kyrgyzstan and one of Putin’s staunch allies, Belarusian President Alexander Lukashenko.

He also met India’s Prime Minister Narendra Modi, Xinhua news agency reported.

China and Russia have sometimes touted the SCO as an alternative to the Nato military alliance. This year’s summit is the first since US President Donald Trump returned to the White House.

In an interview published by Xinhua on Saturday, Putin said the summit will “strengthen the SCO’s capacity to respond to contemporary challenges and threats, and consolidate solidarity across the shared Eurasian space”.

“All this will help shape a fairer multipolar world order,” Putin said.

As China’s claim over Taiwan and Russia’s invasion of Ukraine have seen them clash with the United States and Europe, experts say that Beijing and Moscow are eager to use platforms such as the SCO to curry favour.

“China has long sought to present the SCO as a non-Western-led power bloc that promotes a new type of international relations, which, it claims, is more democratic,” said Dylan Loh, an assistant professor at Singapore’s Nanyang Technological University.

More than 20 leaders including Iranian President Masoud Pezeshkian and his Turkish counterpart Recep Tayyip Erdogan are attending the bloc’s largest meeting since its founding in 2001.

“The large-scale participation indicates China’s growing influence and the SCO’s appeal as a platform for non-Western countries,” Loh added.

Beijing, through the SCO, will try to “project influence and signal that Eurasia has its own institutions and rules of the game”, said Lizzi Lee from the Asia Society Policy Institute.

“It is framed as something different, built around sovereignty, non-interference, and multipolarity, which the Chinese tout as a model,” Lee said.

Putin needs “all the benefits of SCO as a player on the world stage”, said Lim Tai Wei, a professor and East Asia expert at Japan’s Soka University. — AFP

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SCO Tianjin Summit showcases the charm of genuine multilateralism: Global Times editorial

The SCO has not only inherited and advanced the multilateral framework represented by the UN but has also innovated and reshaped its concepts and pathways under new circumstances. The SCO has become both a staunch defender and a benchmark practitioner of multilateralism at a time when this principle of international engagement is under severe erosion worldwide.


14 hours ago — The aircraft carrying the Prime Minister and his wife Datuk Seri Dr Wan Azizah Wan Ismail landed at the Tianjin Binhai International Airport.


Top stories


 professor and East Asia expert at Japan’s Soka University. — AFP

Thursday, 14 August 2025

China achieves key digital breakthroughs in 14th Five-Year Plan, ranks global second in computing power: official

 


AI Photo: VCG

AI Photo: VCG

China has made remarkable strides in digital infrastructure and technological innovation during the 14th Five-Year Plan period (2021-25) with its total computing power ranking second worldwide and technology breakthroughs in key digital sectors, Liu Liehong, head of the National Data Administration (NDA), told a press conference on Thursday.

In terms of digital infrastructure, by the end of June, the country had 4.55 million 5G base stations and 226 million gigabit broadband users, with its total computing power ranking second worldwide. These advancements have strongly driven economic and social development, Liu said.

Technological breakthroughs also shine in key digital sectors. The integrated circuit industry has formed a complete industrial chain covering design, manufacturing, packaging, testing, equipment and materials. Domestic operating systems are thriving, with China's self-developed HarmonyOS powering over 1.19 billion devices across over 1,200 product categories like smartphones, cars and home appliances. China's overall AI strength has seen systemic growth, holding 60 percent of global AI patents, according to the NDA.

The data industry has emerged as a new growth driver. In 2024, the number of data enterprises in China exceeded 400,000, and the scale of the data industry reached 5.86 trillion yuan ($817.24 billion), an increase of 117 percent compared with the end of the 13th Five-Year Plan period (2016-20). Digital economy growth has also created over 100 new occupations, generating fresh employment opportunities, according to the NDA.

By the end of 2024, China's software revenue had grown by 80 percent compared with 2020, while the added value of above-scale electronic information manufacturing had increased by over 70 percent. Meanwhile, intelligent transformation and digital upgrading are advancing at an accelerated pace. More than 10,000 smart factories have been established, covering over 80 percent of major manufacturing industry categories. Smart home appliances and smart wearables have emerged as new consumption trends. -  Global Times

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US national debt hits record $37 trillion amid mounting fiscal concerns


Photo taken on March 17, 2020 shows U.S. dollar banknotes in Washington, DC, the United States. Photo:XinhuaThe US government's gross national debt has surpassed $37 trillion, a record number that highlights the accelerating debt on America's balance sheet and increased cost pressures on taxpayers, the AP reported. The $37 trillion update is found in the latest Treasury Department report issued on Tuesday, which logs the nation's daily finances, according to the AP report.

Experts said that as the debt scale grows larger, future interest payment costs will continue to rise, posing risks to fiscal sustainability, while global investors may grow wary of US Treasury bonds amid credit downgrades and uncertainty.

The $37 trillion debt milestone comes less than eight months after the nation hit the $36 trillion threshold for the first time in late November 2024, and a little over one year after the $35 trillion mark was reached in late July 2024, Fox Business reported.

The $37 trillion debt amounts to about $280,000 per household or $108,000 per person, according to the Peter G. Peterson Foundation.
 
The national debt soaring past $37 trillion sends yet another clear message about America's unsustainable fiscal path, Chair and CEO of the Peter G. Peterson Foundation Michael Peterson said in a statement on its website.

"Our growing debt slowly damages our economy and the prospects of the next generation. As the government borrows trillion after trillion, it puts upward pressure on interest rates, adding costs for everyone and reducing private sector investment. Within the federal budget, the debt crowds out important priorities and creates a damaging cycle of more borrowing, more interest costs, and even more borrowing," Peterson said.
 
The Government Accountability Office outlines some of the impacts of rising government debt on Americans — including higher borrowing costs for things like mortgages and cars, lower wages from businesses having less money available to invest, and more expensive goods and services, according to the AP.
 
The Joint Economic Committee estimates at the current average daily rate of growth, an increase of another trillion dollars in the debt would be reached in approximately 173 days, according to the AP.

Peterson warned that "As our debt continues to rise, at some point the financial markets will lose confidence in our ability to overcome the politics to solve this problem."
 
To repay maturing debt, the US government has been issuing new debts to repay old ones, leading to the continuous expansion of the overall debt load. As the debt scale grows larger, it means that the future interest payment costs will continue to rise, posing risks to fiscal sustainability, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Wednesday.

If maturing debts cannot be repaid, US debt will become unsustainable, and its credit ratings may be downgraded, creating significant risks for global investors, Zhou added.

The expansion of the US government's debt scale has brought more uncertain risks to investments in US Treasury bonds, making global investors more cautious, Zhou said.

"Factors such as rating agencies' changes in sovereign credit ratings and sharp swings in US tariff policies at the real-economy level have added to this uncertainty," Zhou added.

Yang Changjiang, a professor at Fudan University, told the Global Times on Wednesday that the expanding US government debt has also brought greater uncertainty to the global financial market and the stable operation of the international monetary system.

In May, Moody's downgraded the US sovereign credit rating. It is expected that US large-scale fiscal deficits will further increase the burden of government debt and interest payments, and the fiscal situation is likely to deteriorate, Yang said.

Moody's Ratings in May cut the US' sovereign credit rating by one notch to Aa1 from Aaa.

"This one-notch downgrade on our 21-notch rating scale reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns," said a release by Moody's Ratings. 

The US fiscal performance is likely to deteriorate relative to its own past and compared with other highly rated sovereigns, according to the credit rating agency.

The downgrade means the US has lost its last triple-A credit rating from a major ratings firm, following cuts by Fitch Ratings in 2023 and S&P Global Ratings in 2011, according to Xinhua.
Related:

China achieves key digital breakthroughs in 14th Five-Year Plan, ranks global second in computing power: official

 


AI Photo: VCG

AI Photo: VCG

China has made remarkable strides in digital infrastructure and technological innovation during the 14th Five-Year Plan period (2021-25) with its total computing power ranking second worldwide and technology breakthroughs in key digital sectors, Liu Liehong, head of the National Data Administration (NDA), told a press conference on Thursday.

In terms of digital infrastructure, by the end of June, the country had 4.55 million 5G base stations and 226 million gigabit broadband users, with its total computing power ranking second worldwide. These advancements have strongly driven economic and social development, Liu said.

Technological breakthroughs also shine in key digital sectors. The integrated circuit industry has formed a complete industrial chain covering design, manufacturing, packaging, testing, equipment and materials. Domestic operating systems are thriving, with China's self-developed HarmonyOS powering over 1.19 billion devices across over 1,200 product categories like smartphones, cars and home appliances. China's overall AI strength has seen systemic growth, holding 60 percent of global AI patents, according to the NDA.

The data industry has emerged as a new growth driver. In 2024, the number of data enterprises in China exceeded 400,000, and the scale of the data industry reached 5.86 trillion yuan ($817.24 billion), an increase of 117 percent compared with the end of the 13th Five-Year Plan period (2016-20). Digital economy growth has also created over 100 new occupations, generating fresh employment opportunities, according to the NDA.

By the end of 2024, China's software revenue had grown by 80 percent compared with 2020, while the added value of above-scale electronic information manufacturing had increased by over 70 percent. Meanwhile, intelligent transformation and digital upgrading are advancing at an accelerated pace. More than 10,000 smart factories have been established, covering over 80 percent of major manufacturing industry categories. Smart home appliances and smart wearables have emerged as new consumption trends. -  Global Times

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