2 2 0 2 r e b m e t CULTURE p e S Character Flaws: 2 1 1 Hit drama fumbles o. N feminist message e m u INTERNATIONAL l o V Taiwan Tensions: How has Pelosi 's visit affected Sino-US ties? ECONOMY Delayed Take-offs: Aviation uncertainies as Covid restrictions linger THE GREAT ESCAPE China’s city slickers are discovering nature and outdoor activities in their own backyard. How long will the adventure last? £ 3.50 EDITORIAL Further high-level opening-up key to China’s Published by China News Service economic growth amid uncertainty Publisher: Chen Lujun Executive Director: Chen Lujun Editor-in-Chief: Tan Hongwei T he complicated and severe external and domestic resources distribution, but also helps create Deputy Editor-in-Chief: Li Jia internal environment is posing a big chal- a good systematic environment for cooperation with Editorial Office lenge to China’s economic growth. Inter- other countries and will help lead global governance Copy Editors: Kathleen Naday, James Tiscione nationally, the world is witnessing drastic volatility, reform. Lead Writers: Yu Xiaodong Senior Editors: Wang Yan, Yi Ziyi due to rising anti-globalisation, First, the negative list for for- Editors: Xie Ying, Xu Ming, Wu Jin global supply chain restructur- eign investment, which specifies Consultant Editor: Chen Shirong It is time for China to ing, the Russia-Ukraine war, and sectors that restrict or prohibit First Reader: Andrew McEwan further align its trade Address: 5th Floor, 12 Baiwanzhuang South rising inflation and interest rates foreign investment, should be Street, Xicheng District, Beijing, China in the US and Europe. Domesti- and investment rules further shortened to ensure a lev- Post Code: 100037 cally, the three major pressures of with international el playing field for competition. Tel: +86-10-88395566 Fax: +86-10-88388045 shrinking demand, supply chain common practice Wider financial market access Email: [email protected] disruption and weakening mar- should be offered to foreign com- Website: www.ChinaReport.co.uk to build a better ket expectations have not eased panies in the banking, securities, developed, more Art Department much. This is compounded by insurance, fund and futures sec- Art Director: Wu Shangwen transparent the pandemic resurgence, slug- tors. Capital market cross-border Art Editor/Designer: Zhang Dawei, Zhang Xu gish consumption and real estate regulatory connections should be deepened. Marketing/Advertising/Subscription developers’ debt risk in China. framework. China Services of customs, foreign ex- EMEA Office Foremost 4 Media All this adds up to uncertainty should focus on change and taxation should be Duty Editor: Sophie Lang for China’s economic growth. improved. Email: [email protected] this “systematic Further high-level opening- Second, opening-up in the ser- Tel: +44 20 7224 8812 opening” Fax: +44 20 7723 8346 up is crucial to mitigate the vice sector needs to be expanded. Website: foremost4.media downside pressure on China’s With per capita GDP exceeding Marketing Office in China economy. This has been proved US$10,000, Chinese consumers Director: Wang Chenbo in China’s experience over the past decades. The are spending more on services. In April 2021, four Account Manager: Ren Jie launch of the reform and opening-up policy in cities and one province, Beijing, Tianjin, Shanghai, Tel: +86-10-88388027 Circulation Manager: Yu Lina 1978, accession to the WTO membership in 2001 Chongqing and Hainan were designated as trial Tel: +86-10-88311834 and the Belt and Road Initiative in 2013 have un- areas for development of a modern service sector London Office: Zhang Ping derwritten China’s take-off and rise to become the and more openness of the service market. Utilisa- New York Office: Ma Delin, Liao Pan world’s second-largest economy and a champion in tion of foreign funds in the service sector in the five Washington Office: Chen Mengtong, Sha Handing Los Angeles Office: Zhang Shuo manufacturing and trade. The faster than expected areas accounted for 33.7 percent of the national to- San Francisco Office: Liu Guanguan growth of China’s foreign trade since the second tal that year. That reform should be deepened, and Houston Office: Zeng Jingning Tokyo Office: Lu Shaowei half of 2020 has been the major driving force to successful experience should be rolled out across the Paris Office: Li Yang stabilise the country’s economy. And it is the re- country. Bangkok Office: Wang Guoan Kuala Lumpur Office: Chen Yue sponsibility of China as a major country to expand Third, more steps should be taken on reforms Moscow Office: Tian Bing its opening to the rest of the world. implemented in the 21 free trade zones and the Manila Office: Guan Xiangdong Berlin Office: Peng Dawei After opening its market by standards even higher Hainan Free Trade Port, covering all parts of China. Sydney Office: Tao Shelan Brussels Office: De Yongjian than its WTO commitment in terms of tariffs and Those free trade zones should have more autonomy Astana Office: Zhang Shuo market access, it is time for China to further align to explore creative, comprehensive and different Rio de Janeiro Office: Wang Xi Johannesburg Office: Song Fangcan its trade and investment rules with international reforms. Their achievements on systematic innova- Jakarta Office: Lin Yongchuan common practice to build a better developed, more tion should be promoted throughout the country. Kathmandu Office: Zhang Chenyi Legal Advisor: Allen Wu transparent regulatory framework. China should Hainan’s reform should focus on zero tariffs for focus on this “systematic opening.” imports of goods and facilitation of trade and in- ISSN 2053-0463 Moreover, issues like intellectual property pro- vestment in the service sector by further relaxing tection, labour and environmental protection top restrictions on flows of people and transportation. the agenda of the international trade system to- In this way, China will not only realise its day. Promoting systematic opening not only fol- own high-quality growth, but also create a more lows the trend of globalisation and can optimise dynamic world economy. CHINAREPORT I September 2022 1 CONTENTS CAMP CULTURE ChinaReport looks at Chinese people’s newfound appreciation of outdoor activities amid continuing pandemic controls P F C P20 by o ot h P EDITORIAL 01 Further high-level opening-up key to China’s economic growth amid uncertainty INTERNATIONAL 14 Cross the Taiwan Strait: Provocative Politics 16 China-Japan Relationship: End of the Abe Era P16 COVER STORY 20 Out and About: Day Trippers/Tent-pole Industries POLITICS 30 Local Corruption: Halting the Vanity Affair ENVIRONMENT P54 32 Ecological Compensation: Betting On Green 2 CHINAREPORT I September 2022 CONTENTS P60 P57 P51 SOCIETY OUTSIDE IN 36 Assisted Reproduction: 60 Tongliao: Build Your Own Baby Getting in Steppe 40 Fraud: Grandparent Trap 04 SNAPSHOTS 08 MEDIA FOCUS ECONOMY 09 WHAT THEY SAY 43 Youth Unemployment: 10 NEWS BRIEF Job Pains and Gains 12 NETIZEN WATCH 46 Civil Aviation: 52 CHINA BY NUMBERS Turbulence Ahead 62 ESSAY 64 FLAVOUR OF THE MONTH/REAL CHINESE CULTURE 51 TV : Morality Played Out INTERVIEW P46 54 Interview: Identity Issues HISTORY 57 History: Steep Competition CHINAREPORT I September 2022 3 SNAPSHOTS 1. China’s Long March-5B Y3 carrier rocket lifts off from Wenchang Space Launch Site, Hainan Province, July 24, 2022. The upgraded rocket carried the Tianwen lab module, which was delivered to the astronauts at the Tiangong space station [Photo by VCG] 2. Young people visit an immersive art exhibition featuring a projected version of a painting titled “The Vast Land” by Chinese painter Wang Ximeng (1096-1119), Chongqing, August 7, 2022. [Photo by IC] 3. Pictured is China’s first domestically constructed cruise ship, August 3, 2022. The colossal liner, built by Shanghai Waigaoqiao Shipbuilding Co Ltd, a subsidiary of China State Shipbuilding Co Ltd, is scheduled for completion in the second half of 2023 [Photo by IC] 4. The world’s first maglev-suspension monorail, dubbed the Xingguo, undergoes trials on an 800-metre test track in Ganzhou, Jiangxi Province, August 9, 2022. The project was proposed by Jiangxi University of Science and Technology and implemented by the China Railway Sixth Institute Group and China Railway High-Tech Industry Co Ltd [Photo by IC] 1 2 4 CHINAREPORT I September 2022 3 4 CHINAREPORT I September 2022 5 SNAPSHOTS 3 1. Tourists visit the restored Locana Buddha Statue, Longmen Grottoes, Luoyang, Henan Province, August 3, 2022. Built in 672, the statue is celebrated for its fine craftsmanship and expressive carving [Photo by VCG] 2. A beluga whale eyes a lamp as it swims in a tank at Harbin Polarland, August 6, 2022, Harbin. A group of children stayed overnight in the park to observe animals’ nocturnal behaviour [Photo by VCG] 3. Tourists dressed in rented astronaut costumes pose for a photo at Wulanhada Volcano Geopark in Ulanqab, Inner Mongolia Autonomous Region, July 16, 2022. The park has become a tourist hotspot for its Martian and moon-like terrain [Photo by VCG] 4. Priests (Bimo) perform rites as part of the Torch Festival, the most significant event of the Yi minority, Chuxiong Yi Autonomous Prefecture, Yunnan Province, July 22, 2022 [Photo by VCG] 6 CHINAREPORT I September 2022 1 2 4 CHINAREPORT I September 2022 7 ChinaReport, Chinese Edition Xinmin Weekly July 25, 2022 July 25, 2022 Sound Growth to be Secured Genetic Medical Revolution in Sight Over the past few years, metagenomics, a genetic testing technology which takes samples directly from the en- vironment, has developed quickly in China, due to its fast and more accurate identification of microorganisms. Teaming up with forefront sciences, genetic testing in China is almost on par with technologies developed in the West, and even leads in some specified fields. However, weak links, such as insufficient national genetic databases and high charges are still to be addressed. To build a stronger database, Huaxi Hos- pital in Sichuan Province is working on the genetic sequencing of 100,000 rare diseases. Meanwhile, the cost of metagenetic testing has reduced by 100 times from 10 years ago. With a growing number of third-party institutes China secured hard-won economic growth of 2.5 percent in the involved in genetic testing, a medical revolution is approaching. first half of 2022. During the second half, the government will con- tinue to ensure effective investment in expanding and upgrading infrastructure. The credit limit of policy banks will be loosened and more bonds will be issued to leverage investment estimated at 1.5 Hua Sheng Guan Cha trillion yuan (US$220b). Investment in job-creation infrastructure June 30, 2022 projects is particularly encouraged. However, it is not easy to find projects that balance immediate demand for economic growth Strategic Development in Counties and long-term returns. Value-added tax refunds will be scaled up to direct more funds to ease tight cash flow for businesses, espe- China is projected to roll out a slew of policies to upgrade cially struggling small- and medium-sized enterprises. It is crucial its 1,866 counties and county-level cities into moderately to stabilise market expectations for long-term growth. Tertiary well-off areas by 2025, according to a circular issued by industry should also be boosted to increase job opportunities. Ex- the central government. About 30 percent of permanent urban residents, to- perts also propose handing out discount coupons to consumers and talling 250 million by 2021, live in counties in the urban-rural fringe. These increasing financial liquidity for housing developers in difficulties. counties are supposed to reverse the trend of rural to urban migration of the past four decades. This year, fresh graduates unable to find jobs in big cities have sought career opportunities in counties, though still somewhat reluctant- Southern Metropolis ly. To sustain the fledgling talent pools, and more importantly share growth Weekly benefits for farmers, resources will be distributed to diversify and develop in- June 12, 2022 dustries in counties. Ready Meals on the Menu Pre-prepared food, which only needs to be heated up, is expected to hit a market scale of 3 trillion Oriental Outlook yuan (US$440b) within six to seven years in China, July 21, 2022 if year-on-year growth can be maintained above 20 Beijing’s Mother River Restored percent from 2023. Popular with young people, ready meals liberate commuters from tedious cooking and On May 12, 2022, Yongding River, the mother river of provide them with diverse cuisines. The booming Beijing, flowed for the first time for decades through its business is shaping a holistic industrial chain from raw full watercourse, passing the provincial regions of Shanxi, materials to catering while standardisation is under- Inner Mongolia, Hebei, Beijing and Tianjin before entering the Bohai Sea. way. In 2021, the output of crayfish, a popular sum- The banks are covered in green trees and echo to the sound of birds. Some mer cuisine, usually sold semi-cooked, surged by 22.4 2.15 billion cubic metres of water was diverted from the Yellow and Yangtze percent to almost 422.2 billion yuan (US$62.44b), Rivers to end the watercourse’s drought. The water is expected to keep flowing among which 303 billion yuan (US$44.81b) was for at least 100 days in 2022 and constant flow should be restored by 2035. from catering. Meanwhile, with capital expansion, Improvements in water quality allow Guanting Reservoir on the Yongding listed companies are monopolising supplies and nar- River to resume its long-lost role in Beijing’s drinkable water system. Joint rowing margins for retailers. Yet China’s ready-to-eat efforts such as Shanxi’s eco-friendly agricultural development, Beijing’s inter- food industry is still in its nascent stage, and few enter- disciplinary research as well as the preservation of riverside cultural heritage prises are capable of taking a lead in the market. have paid off. 8 CHINAREPORT I September 2022