© Telegra.ph
Not only because the sessions set the framework for Beijing to confront serious economic challenges ahead.
But also because of the stellar performance by Foreign Minister Wang Yi, who forcefully imprinted in the collective psyche of the Global Majority how China should be regarded as a premier source of stability in this extremely turbulent geopolitical juncture, standing firm "in the right side of History".
So let's start with the key Wang Yi takeaways - which translate as de facto setting the tone for Beijing's diplomacy throughout 2025.
US-China: Beijing is ready to engage with Trump 2.0 on the basis of mutual respect. Yet "if the US continues to contain China, we will resolutely counteract." It's "fully possible" for US and China to become partners. But this should be seen as the paramount concept: "No country should fantasize that it can suppress China and maintain good relations with us at the same time."
The Global South: That is a "key force for maintaining world peace, driving world development and improving global governance". These developing nations, accounting for over 40 per cent of global GDP, "hold the key to bringing stability to the world and making it a better place." Wang Yi emphasized once again how China is "a natural member of the Global South."
Russia - and Ukraine conflict: Russia and China's "mature and resilient relationship (...) will not be swayed by any turn of events or be affected by any third party." Wang Yi defined Beijing's position on the conflict as "objective and impartial" - and crucially did not call for Europe - or Ukraine - to be included in the upcoming US-Russia negotiations. His major point - which echoes Russia's analysis: "Security is mutual and equal; the security of one country cannot be built on the insecurity of others."
Gaza: No Chinese endorsement of the Trump Gaza Riviera Resort and Casino gambit: "Gaza belongs to the Palestinian people". And "changing its status by forceful means will not bring peace but new chaos". Beijing supports the Egyptian peace plan. Once again, Wang Yi made it clear that "the crux of the cycle of the Palestinian-Israeli conflict lies in the fact that the two-state solution is only half achieved."
Europe: Wang Yi praised the "capacity and wisdom" of EU-China to "deepen strategic dialogue and mutual trust." Beijing, at least in theory, believes that Europe could become a trusted partner. The EU and the European Commission (EC) in Brussels may have other - belligerent - ideas.
South China Sea: Wang Yi went straight to the point on the manipulation of Philippines by "external forces": "Infringement and provocation will backfire, and those acting as others' chess pieces are bound to be discarded." Yet he stressed the South China Sea remains "stable", because China and ASEAN want it to remain so.
Taiwan: Wang Yi forcefully stated that "Taiwan has never been a country (...) It was not in the past, and it will never be in the future." Moreover, "seeking Taiwan independence is doomed to backfire, and using Taiwan to contain China will be nothing but a futile attempt. China will realise reunification, and this is unstoppable."
Made in China 2025 on overdrive
Now let's focus on China's extremely complex domestic equation. At the opening of the Two Sessions, Premier Li Qiang came up with a rallying call for the whole nation to rise up to a series of "very challenging" goals, including growth of 5% in 2025 (it was 4.9% last year).
Essentially, to revitalize the economy, Beijing will issue 1.3 trillion yuan (around US$182 billion) in ultra-long special treasury bonds. The deficit-to-GDP ratio was set at around 4%.
The official policy of "opening up" will reach the internet, telecoms, healthcare and education industries - meaning more opportunities for foreign investors and possible partnerships up and down the industrial supply chain.
© Telegra.ph
Premier Li enthusiastically praised the role of regional growth drivers such as the Greater Bay Area - the super high-tech cluster in Guangdong province linked to Hong Kong. Predictably, he extolled the "one country, two systems" model and the further economic integration of both Hong Kong and Macau.
Arguably this is the best analysis anywhere not only of why Hong Kong-based CK Hutchinson had to get rid of its port operations in the Panama Canal, but also because it offers a crisp Chinese evaluation of the "three powers" behind Trump 2.0: Wall Street, heavy industrial capital (energy, steel, mining) and Silicon Valley.
CK Hutchison Holdings, founded in Hong Kong by notorious tycoon Li Ka-shing, essentially had to sell 80% of Hutchison Port Group, a subsidiary that owns 43 container ports in 23 countries, including a 90% stake in the Balboa and Cristobal docks at either end of the Panama Canal, because of hardcore geopolitics. Hutchison will continue to control its ports in China, including Hong Kong.
President Trump made a huge fuss about the BlackRock-led deal. The view in Hong Kong is more pragmatic. Hutchinson was not eager to engage in a furious court battle in US courts - not to mention potential sanctions. So they chose to opt for a "strategic exit".
Finding shelter from the coming storms
Premier Li noted how consumption in China now is "sluggish" and, somewhat euphemistically, how there were "pressures on job creation and income growth". Enter a promised "vigorous boost" to household demand, plus the creation of 12 million new urban jobs, with help focusing on fresh university graduates and migrant workers.
In parallel, Beijing will expand its military budget by only 7.2% in 2025, reaching roughly 1.78 trillion yuan (US$ 245 billion). That's not much compared to the Pentagon budget.
It's quite enlightening to observe the proposals of the Two Sessions - and the tone-setting by Wang Yi - in relation to the analysis by a certified Asian star such as former Singaporean ambassador to the UN Kishore Mahbubani.
Kishore once again resorts to Sun Tzu, explaining how Chinese rulers always privilege the best way to win as not fighting kinetic wars. What matters is to coordinate expansion - epistemologically, educationally, economically, industrially, techno-scientifically, financially, diplomatically, militarily - under the aegis of deterrence.
The bottom line is that Beijing will not be trapped by any possible, bombastic provocation coming from Trump 2.0. Once again, it's all about "coordinated expansion".
Example. The Australian Strategic Policy Institute, partly funded by the Australian military, and frankly Sinophobic - and Russophobic - at least did something useful by developing a Critical Technology Tracker of 64 current, critical technologies.
© Telegra.ph
All that is inextricably linked to the successful planning - and achieved targets - of Made in China 2025. Talk about two five-year plans back to back (Made in China was conceived in 2015).
So this is what China 2025 will be all about: serious investments coupled with lots of partnerships with the whole Global South. Once again, in a sort of Sun Tzu framework tweaked by Bruce Lee, China is bound to use Trump 2.0 and the coming mix of confrontation, competition and periodic negotiation as a trampoline to expand its global reach even further.
That might be one of the unstated meanings of what Xi Jinping told Putin in Moscow nearly two years ago: "Changes unseen in a century." Beijing will be sure to find shelter from the storm - any storm. And without having to fight a single kinetic war.
Reader Comments
That needs to be understood.
Bring back American made clothes and not from these big corporations that only care about profits and not quality and durability.
~
I been to a few places where this was done - most of em are gone now - but I suspect there is equipment easily available - and why not get some of them places up again and running - after hard lessons learned - and produce the goods locally.
~
I concur Patrick 2017.
BK
I met so many good folks - and I worked for them - at plants all over but mostly in North Carolina, South Carolina, and Virginia. I could tell stories about the site in Wagram, NC made towels for damn near half of america and then spent some serious fund (indebted) to build natural-gas power plants to replace the ole coal ones there - only to shutdown and become a distribution center for Wal-mart or some such.....I remember the fella there - his name was Yancy - and when they went bankrupt he told me - we will make amends Ken - and Yancy did - and he was a fine man and I miss him dearly.
I recall a site in Burlington, NC where I did the NC-Toxic Air Pollutant modeling analysis - but the sad thing is - all the folks there knew - that places days were numbered. I remember this sprawling complex in a city I drive by frequently now on my way to my "getaway" place - what was that city - I can't remember now - it was one the saddest places I ever been - since the place was a shadow of itself.
~
I prefer cotton over polyester as well - but I could tell you about the plants in Wilmington, NC, Spartanburg, SC, Fayetteville, NC, Salisbury, NC - and so many others - including Nylon 6 and 66 places - I been to a lot of facilities - and it pisses me off how all the industry slowly but surely was "killed off" - bunch of banker bs and eff the zigaboos!
~
eff em to hell direct!
BK
This demographic shift also caused work ethics to shift until there came a point where it wasn't economically feasible to remain in the US.
~~!~~
It was supposedly the "cotton dust" standard that caused the Mill at our "Getaway" place to shutdown in 1989 I think it was - it was build in circa 1903 and at that time was considered - "State of the Art" - it was alongside the New River in Fries, VA and the Army Corps came in and build a hydroelectric damn there to power the place. Most of the time it just looks like a waterfall - cause it was build in an older style.
Here is an article on Fries, VA:
[Link] and a picture from said article I'm really fond of.... [Link]
~
Now - I'm not so sure it really was the "cotton dust" standard that shut the place down - that sounds like an "excuse" because most large modern textile mills handling cotton have what are referred to as "air handlers" - and they remove dust and maintain desired humidity levels - they ain't cheap to purchase and install - and they take considerable space and use significant amounts of energy - but that is offset by the improved working conditions in so many ways - so I don't think that really is what caused the mill in Fries to shutdown - like many other places in late 80's and 90's (and probably still) - the "owners" got into debt over their heads I suspect - and then the place slowly decayed until it shutdown - and it is gone now......the town got " hood-winked " by some tricksters who said they were going to do one thing (build townhomes or some such) but actually hauled off all the fine old planks and other parts of the mill that really were irreplicable. After that they just tore the thing down to the ground and then the town went into a sort of lengthy state of depression - which I supposed is how my wife and I were able to acquire two stouter than all out super mill homes made to last....on a dime in 2019 - I mean really inexpensive - the two together half or a third the cost of some high rise condo in Myrtle Beach.
~
Maybe one day there will be a new plant opens up there - the hydroelectric damn was damaged during the flooding of Hurricane Helene (the New River basin extends into western NC), but I sure hope it gets fixed - cause the infrastructure is still of tremendous value.
~
Warm Regards,
Ken
for the Kanucks in the audience: i've purchased my outdoor clothes for years from Whites of Lindsay (yes in Lindsay On. lol) they sell many Canadian brands like Tough Duck work duds and everyday wear like Redwood Classics [Link]
and to my 'Merican friends, yes i look like Red Green [Link] no beard though
"redgreen.com," - are you kidding me?
Thanks for the link.
How has that "happened"? Let's see, Bush's "No Child Left Behind" and Obama's "Race to the Top/Common Core" leading to indoctrination of ALL children in the USA. Moving manufacturing to anywhere but the USA. Opening borders to fentanyl, cartels, child trafficking to create "free" homeless people throughout big cities. Promoting the DEI agenda with the elimination of meritocracy.