CPC GUIDANCE LEADS NATION TO PROSPERITY

Some officials in the United States have been ganging up on the Communist Party of China, but they are turning a blind eye to the fact that the CPC leadership has enabled China to grow into the world's second-largest economy without resorting to warfare, colonialism or slavery.

They also ignore the broad support that the CPC has earned from the Chinese people due to its people-centered governance philosophy, which is in stark contrast with that of political parties of the US putting selfish political gain and capital first, analysts said.

Wu Bo, a researcher of socialism with Chinese characteristics at the Chinese Academy of Social Sciences, said that the CPC considers people's interests all it works for, and the CPC's all-out efforts to protect people's lives and health in fighting COVID-19 have been one of the testimonies of this.

Intensive slandering of the CPC by some US officials is based on an outdated Cold War mentality and deep-seated ideological bias, Wu said, and they have prejudices against the path of socialism with Chinese characteristics and turn a blind eye to the broad support of the Chinese people for the CPC while ignoring their severe problems at home.

Over recent decades, the CPC has led the nation to create economic miracles and long-term social stability. By upholding the vision of a community with a shared future for mankind, it shows it wants to work with the international community, including the US, to build an open, inclusive, clean and beautiful world with lasting peace, universal security and common prosperity.

NEW STRATEGY SOON TO BOLSTER DEVELOPMENT

China must come up with a national strategy to deal with the changes in industrial, supply and value chains and look to capitalize on the development opportunities arising from the new round of technology revolution and industrial transformation, said a new report submitted to the Standing Committee of the National People's Congress on the preparations for the 14th Five-Year Plan (2021-25).

The NPC Financial and Economic Affairs Committee said in the report that China should foster deep integration of the digitalization and the economic development as well as industrial upgrading, putting the development of manufacturing into a prominent position and reducing taxes and fees to lighten the burden for enterprises.

More efforts are also needed to foster a market-oriented and world-class business environment governed by a sound legal framework, strengthen the protection of scientific innovation and intellectual property rights, open up wider to the outside world and gain a competitive edge in the global competition, the report said.

China should work harder to build a new model of development in which domestic economic networks play the primary role, and domestic and international economic networks complement each other, it said.

Cui Fan, a professor at the School of International Trade and Economics of the University of International Business and Economics in Beijing, said the new model of development will promote a higher standard of opening up, advance trade and investment liberalization and facilitation and promote the building of an open global economy amid the mounting uncertainties both at home and abroad.

"To fully give play to China's competitive advantages of its ultra-large domestic market and the huge domestic demand, we need to deepen the supply-side structural reforms and build a transparent, efficient and fair business environment," Cui said.

China is now transforming from the phase of rapid development to a new stage of high-quality development and shifting its focus to nurturing technological innovation and further opening up its economy.

The new report suggested the country should continuously deepen reforms and opening-up, saying the country should be more resolute in furthering reform and China's opening-up will continue on a larger scale and at a deeper level.

Cheng Shi, chief economist of ICBC International, said that deepening market-based reforms and further opening-up will be the fundamental goal of China's future development policies as it will help accelerate the country's industrial and consumption upgrading and further improve its economic structure and growth quality.

The dual-cycle development pattern proposed by the central leadership is in line with China's effort to push for high-quality development and adapt to the evolving global system with China's own growth pattern, Cheng said in a research note.

"Further opening-up will not only help lift China's role in the global value chain but will also allow the country to better participate in the global governance which is crucial for the development of the global economy," Cheng said.

Yang Chengzhang, chief economist with Shenwan Hongyuan Securities, said in a research note that the new five-year plan should make breakthroughs in market-based reforms in areas including land, human resources, capital and technology.

Market-based reform in resource allocation is critical for China's high-quality development as it will help better unleash the potential of market players and companies and further improve the country's business environment, Yang said.

SUPPORT URGED FOR WILDLIFE FARMERS

China's top legislature called on governments at all levels to strengthen efforts to help wildlife farmers transform their businesses, as the nation cracks down on the eating and trading of wild animals amid the novel coronavirus outbreak.

The Standing Committee of the National People's Congress, the country's top legislative body, launched a nationwide inspection from May to July, focusing on the implementation of the Wildlife Protection Law and a decision against illegal consumption of wild animals.

The report of the inspection was submitted for review to the bimonthly session of the NPC Standing Committee on Monday.

Shen Yueyue, vice-chairwoman of the NPC Standing Committee, who introduced the report to the lawmakers, said that intensified crackdowns against illegal consumption of wildlife had taken place across the country, but much more work had to be done to assist the affected wildlife farmers.

Since the nation's top legislature adopted the decision in February to comprehensively ban the wildlife trade and eliminate the unhealthy habit of eating wild animal meat, more than 12,000 agricultural markets have been closed and 19,000 wildlife-related products have been seized, said the report.

Shen welcomed the clampdowns, but said many wildlife farmers have been facing difficulties in their business, as policies and measures on how to compensate them and help them transform their business because of the ban have yet to be clarified.

She added that the delay in the implementation of the policies is putting the farmers in a tight spot and causing them a great deal of economic losses.

The report said that more than 244,000 farmers are affected by the ban, since the farmed wild animals, such as snakes, bamboo rats and porcupines, cannot be eaten or utilized in other sectors.

The value of the affected wild animals is estimated at 11.3 billion yuan ($1.6 billion), while the cost of the facilities for breeding the wildlife is worth about 7.43 billion yuan, it said.

Meanwhile, many wildlife-related industries are key projects related to poverty alleviation, "so the burden of helping the farmers adjust their businesses is as great as lifting them out of poverty", Shen said.

Under these circumstances, she called on governments at all levels to make policies in accordance with their practical situation to solve wildlife farmers' problems, urging the authorities to clarify issues such as compensation as soon as possible.

In addition, funds and other financial support also need to be increased, she said, adding that efforts must be made to avoid the killing of wild animals and the total shutdown of wildlife farms during this process.

TERRACE FIELDS IN TAIZHOU LEAD TO PROSPERITY

Zhuxi town of Xianju county in Taizhou, Zhejiang province has been devoted to the development of Yangfeng Mountain over the past several years.

The ancient terraced fields on the mountain are used both as farm field and a natural scenic spot to attract tourists.

HK TYCOON LAI ARRESTED AS SECURITY LAW SUSPECT

Hong Kong police arrested local media tycoon Jimmy Lai Chee-ying and nine others on Monday on suspicion of breaching the National Security Law and other offenses.

Civic leaders in the city said the operation showed the determination of the authorities to safeguard national security, while pointing out that press freedom is never an excuse for unlawful acts.

The Hong Kong and Macao Affairs Office of the State Council expressed support for the arrest of Lai.

Describing Lai as a "representative figure" of political agents who have facilitated external and foreign forces to destabilize Hong Kong, the office said the arrest has upheld justice and defended the rule of law.

According to the Hong Kong Police Force, at least 10 suspects were arrested on Monday, on suspicion of collusion with foreign or external forces to endanger national security, and conspiracy to commit fraud and sedition.

Colluding with external forces carries a maximum penalty of life imprisonment under the National Security Law for Hong Kong.

Lai, the founder of the city's tabloid-style Apple Daily newspaper, was arrested at his residence in Hong Kong on Monday morning. Others arrested include his two sons and four of the newspaper's senior executives, according to media reports.

After the arrest of Lai, police searched the office of his media firm Next Digital with a court warrant. Twenty-five boxes of evidence were collected from the office.

Lai has reportedly met frequently with high-level US government officials since the unrest over the now-withdrawn Extradition Bill broke out in June last year. He also repeatedly requested foreign politicians to "save" Hong Kong in interviews and on social media platforms, urging them to sanction China.

In May, Lai was charged with allegedly organizing and participating in several unlawful rallies in last year's social unrest, and criminal intimidation against a reporter in 2017.

Hong Kong lawmaker Elizabeth Quat Pui-fan said the arrest of Lai, a major public figure, has demonstrated the police's firm resolution to safeguard national security.

Noting that everyone is equal before the law, she stressed that individuals and organizations should never use press freedom to as a cover for unlawful behavior.

Barrister Lawrence Ma Yankwok, chairman of the Hong Kong Legal Exchange Foundation, said the arrest sent a message to society that the authorities are taking the National Security Law very seriously.

CPI RISES 2.7% AS NONFOOD PRICES STALL

China's drop in nonfood inflation indicates a slow recovery in demand from the COVID-19 pandemic, underscoring the need for Beijing to ramp up efforts to bolster domestic demand, analysts said on Monday.

Their words came amid the latest report calling for deepening and refining policies to boost domestic demand and consumption, delivered by He Lifeng, minister of the National Development and Reform Commission, China's top economic regulator.

More policies will be released to unleash consumption potential in the rural areas, boost new business models to spur household spending and accelerate the construction of new types of infrastructure, He said in the report submitted to the Standing Committee of the National People's Congress, the country's top legislature, on Saturday.

The measures will be critical for China to sustain its economic recovery, given that weak demand has become a major drag on growth momentum, as shown by weakening nonfood prices, analysts said.

The year-on-year growth in nonfood prices dropped for the second straight month in July to zero, versus 0.3 percent in June, the National Bureau of Statistics said on Monday.

"The rise in nonfood prices has narrowed to the lowest level since 2010, signaling a sluggish recovery in consumption amid the fallout of the COVID-19 outbreak," said Tang Jianwei, chief researcher at the Financial Research Center of Bank of Communications.

Demand remained especially weak for travel, cultural consumption, sports, entertainment and outdoor activities, Tang said.

In July, prices in the tourism sector contracted by 4.3 percent from a year earlier, while prices in transportation and communication dropped by 4.4 percent, according to the NBS.

The slow recovery in consumer demand came as people remained cautious about going out due to the lingering risk of contagion, while worsened prospects for income growth also dampened spending capacity, analysts said.

According to Tang, to facilitate the recovery in demand, China's macro policy will focus on providing stronger and more accurate support to companies and households in need for the rest of the year.

He of the NDRC said that the country's fiscal policy will be more effective with a bigger round of tax and fee cuts for companies, while monetary policy will be more flexible and prudent to ensure reasonable liquidity and to further lower corporate financing costs.

Despite weakness in nonfood prices, the consumer price index, a main gauge of inflation, grew 2.7 percent year-on-year in July, up from 2.5 percent the previous month, the NBS said.

The acceleration in consumer inflation was mainly driven by higher food prices, the bureau said, as floods in some provinces temporarily affected the supply of pork and vegetables.

Analysts said the uptick in CPI growth will not constrain the nation's commitment to expanding domestic demand, as the figure should soon decrease with the abatement of flood impacts and a high base last year.

Wu Chaoming, deputy dean of the Chasing Institute, sponsored by Chasing Securities, said he expected the year-on-year CPI growth to moderate in coming months and land at about 2.8 percent for the whole year, well below the control target of 3.5 percent.

STARBUCKS DOUBLES DOWN ON CHINA PLAY

Starbucks Corp, the world's largest coffee house chain by annual sales revenue, has doubled down on its commitment to the China market by reopening its renovated flagship store in Beijing's upscale commercial and lifestyle hub of Sanlitun.

Company executives said the coffee chain is also on track to open 500 new stores by the end of this fiscal year, despite the temporary setback from COVID-19.

Leo Tsoi, chief operating officer and president of Starbucks China Retail, the local unit, said the firm's long-term development strategy in China remains firm despite the challenges and difficulties posed by COVID-19.

"We will continue to increase our investment in the country, making efforts to bring top-level coffee and continuous innovations."

Opened seven years back, the Sanlitun store was the coffee chain's first flagship outlet on the Chinese mainland. It received a major renovation that introduced the firm's signature Reserve coffee and Bar Mixato, which integrates modern cafe and bar experiences for the benefit of younger consumers.

This move is expected to increase nighttime footfalls as well, in line with the growing summer trend of night economy in China.

Starbucks in China has been innovating its in-store experiences, expanding its presence by adding more stores, and diversifying outlet formats, in an effort to deepen its connect with local communities.

Last week, it introduced a group order function on its mobile app as well as WeChat. This feature targets groups of consumers at workplaces or at meeting and conference venues, allowing them to customize their preferences, thus making bulk deliveries quick and convenient.

By the end of May, Starbucks boasted more than 4,400 stores on the Chinese mainland, including 281 that were added this year. So far, about 99 percent of its stores in China are open and serving their respective local communities. About 90 percent of Starbucks stores in China have returned to pre-pandemic operating hours.

Starbucks had paused new store openings in China in the first quarter of this year due to the pandemic. But, store development activities resumed toward the end of March.

In April, Starbucks announced a strategic partnership with Sequoia Capital China, an investment firm, to tap into the country's growing technological landscape, and to further digitalize its retail experiences and optimize operations.

In the same month, the company joined hands with plant-based innovators Beyond Meat Inc and Oatly to launch new plant-based choices at its stores across China.

In March, Starbucks unveiled plans to build a Coffee Innovation Park in China to extend its global roasting network and lay a solid foundation for continued business growth and development.

THOUGHT FOR THE DAY

Focused action beats brilliance. - Mark Sanborn