Apr 21 FT Climate in Focus, Xi's speech implications, TikTok sued by children, Taiwan reporters


21 Apr

MARKETs @ 2pm Hong Kong time
Asian markets sold off following the US, but later found support and traded sideways, except China which opened lower but is now trading higher; go 'Team China’. Covid concerns in Japan, S Korea and India weighting on the markets
All markets opened lower following the sell off in the US
AUSTRALIA 
Sold down in early trading to 6,950 and then bounced but unable to hold and then legged down to 6,900 level around midday and then worked better into the close to finish -33pts (-0.5%) @ 6,985
Data
Retail Sales Prelim Mar +1.4% MoM vs -0.8% Feb (F/cast was +0.7%)
Leading Index Mar +0.38% MoM vs +0.16% feb revised (F/cast was -0.1%)
JAPAN
Nikkei opened -440pts and initially traded sideways but then drifted lower into lunch.  PM opened higher but trading sideways. The re imposition of emergency measures hurting sentiment. Currently -571pt (-2%) @ 28,529
Topix traded in a similar pattern currently -36pts (-1.9%)@1,891
S KOREA  
Pre market PPI data was strong than forecast
Kospi opened lower and saw an initial leg down to 3,950 level and then worked lower through the morning to 3,170 level around midday and then traded sideways currently -45pts (-1.4%) @ 3,176
Kosdaq traded in a similar pattern currently -9pts (-0.9%) @ 1,023
TAIWAN 
Opened lower despite the good Exports data and trended lower to 17,170 level by mid morning before working higher to around the 17,250 level and traded sideways until about 12:30pm and then drifted lower into the close -122pts (-0.7%) @ 17,202
CHINA 
CSI300 opened lower at 5,055 but rallied to flat in the first 10 minutes before selling back down to the opening level but the worked better into lunch seeing resistance at 5,100.PM opened lower but retested the 5,100 level which is becoming resistance today Currently +21pts (+0.4%) @ 5,104
HONG KONG 
Pre mareket opened @ 28,702 -434pts vs -358pts ADR’sTrended lower to 28,500 level before a small uptick and traded sideways into lunch. PM still trading sideways; -530pts (-1.8%) @ 28,599
EUROPE 
Expect a mixed open FTSE -6 points lower at 6,849, DAX +11 points at 15,132, CAC 40 flat at 6,158 and Italy’s FTSE MIB -42 points at 23,786, according to IG.
Earnings from, AkzoNobel, Heineken, Randstad and Roche are among the companies reporting
DataUK Inflation Rate, Core Inflation, PPI Core, PPI Output, PPI Input, Retail Price Index,
US Futures Opened in Asian time Dow flat, S&P -0.1%, NDX -0.4%
AHEAD MBA Mortgage Applications and 30 yr Mortgage Rate, EIA Oil Report.
Earnings Verizon, Chipotle, Whirlpool, Nasdaq, Baker Hughes, Anthem, Netgear, Spirit Airlines, Canadian Pacific Railway, Lam Research, Discover Financial, SLM, Halliburton, Knight-Swift Transportation

FT; a large number of articles on climate ahead of Biden’s Climate Summit
Front Page
Border threat alarms Kyiv
Ukraine said yesterday that Russia would soon have more than 120,000 troops on its border, as Kyiv called for new western economic sanctions to deter Moscow from “further escalation”.
Russia’s relations with the EU and US are at low points not seen since the cold war, with German chancellor Angela Merkel expressing concern yesterday at the “extremely tense and very worrying” situation.
Russia also expelled two Bulgarian diplomats yesterday, following the expulsion of 20 Czech diplomats on Sunday and 10 US diplomats last Friday.

Xi calls for new world order in attack on US global leadership
• Speech points to dangers of decoupling • Warning on interference in ‘internal affairs’
The speech was given at the Boao Forum opening. Heralded as a veiled attack on the US but was probably more aimed at the domestic audience.
Saying that the “The rules set by one or several countries should not be imposed on others, and the unilateralism of individual countries should not give the whole world a rhythm,” seems to suggest that China does not want to be subject to the established global rules; as set by the likes of the WTO, WHO, WMO, UN etc. It has already demonstrated its only partial adherence to the rules when it rejected the WMO ruling that the ’Nine Dash Line’ had no standing.
But more importantly it comes as President Xi is under pressure from many sides, both internationally and domestically.
The article notes that the deterioration in relations with the US comes against the backdrop of US firms increasingly wanting access to Chinese markets; especially the banks; primarily for Wealth Management Products. It says that in China’s eyes it views the US as hegemonic, which considering its attitude towards Taiwan and the South China Sea holds a certain irony.
He called for closer co-operation on 'developing, manufacturing and distributing Covid-19 vaccines to improve access in developing countries. “We want to make [the vaccine] truly accessible and affordable to people of all countries,” he said.’
As has been mentioned before President Xi is convinced that China is in the ascendancy and the US is a spent power. Despite his speech he wants China to be setting the rules, despite him saying '“However strong it may grow, China will never seek hegemony, expansion or a sphere of influence, nor will China ever engage in an arms race,” Clearly the recent actions against Taiwan and in the South China Sea undermine that statement.
The full speech is attached at the bottom of this email.

‘Huge risk’ of space junk collisions as thousands of satellites blast into orbit
The launch of thousands of satellites in “mega-constellations” to improve global internet access will exacerbate the growing problem of space junk, experts at a European Space Agency (ESA) conference warned yesterday.
Basically a call for a better traffic management system in space.The already serious problem is about together worse as operators look to grab space in low-Earth orbits to boost internet access.The current guidelines are 20 years old.
Page 2
Regulators join forces to rein in Big Tech
Germany, Australia and UK unite to take on likes of Google and Facebook
They warned that they would take sceptical view of tie ups and are concerned about the concentration of power in the sector.
Comes as post pandemic 'the UK’s Competition and Markets Authority, Andrea Coscelli, said he anticipated “tremendous pressure” from companies citing the need to rebuild after the pandemic as a reason to approve deals.’He said the regulators would be focused on the long term benefits for users.
Nice quote “Very often when you look into markets you realise that at some point in the past there was a merger that really shouldn’t have happened,” he said.
Coscelli said Google’s purchase of online advertising company Double-Click in 2007 was “the source of a number of problems”.

They also warned that they will be increasingly less likely to accept promises from companies to change their behaviour.

TikTok sued on behalf of millions of European children
Chinese video app TikTok is being sued for several billion pounds for allegedly illegally collecting children’s personal information in the UK and Europe, in a legal claim being brought on behalf of millions of children.
'claims that TikTok collects a huge volume of children’s private information while using the app — including phone numbers, pictures, videos, their exact location and biometric data — and transfers this data to unknown third parties for profit.’
Not for the first time the company is being investigated. It notes that the part of the complaint is about how easy it is for users under the certified age to use the app can circumvent the entry barrier by lying about their age,
'Clearly they know under-13s are using it, companies often say kids put the wrong age on but my view is that isn’t good enough. “Knowing kids will do that, you need additional measures to provide more robust verification of children when they are online.”'TikTok said: “[W]e have robust policies, processes and technologies in place to help protect all users, and our teenage users in particular. We believe the claims lack merit and intend to vigorously defend the action.”'
It will be interesting to follow not just about TikTok but for on line trading apps and whether the verification that they use for the competency of their users too.

Laschet victory ends German power struggle
CDU leader to run as candidate to succeed Merkel but is less popular than CSU challenger.He won the backing of the CDU governing body but it was not unanimous and many worry that Laschet is less popular than Söder from the CSU.It certainly looks like German politics issuing to become more exciting.

Page 3
Czech-Russia ties damaged by fallout from 2014 blasts
Western intelligence allies endorse link to suspects in Skripal murder attempt.
Looks at the background to the recent diplomatic explosions between Russian and the Czech Republic. It is interesting to note recently how countries are becoming far more vocal about the espionage activities of particularly Russia and China. Yesterday the FT Opinion had an article about Russia and China testing Biden, but that in fact might just be a response to the pressure they are coming under; not just from the US but other countries too.
I was listening to a presentation recently on the recent US hacks that have been attributed to Russian and China and the feeling that the Western governments need to strike back to show that such activities are unacceptable.
But its an interesting conundrum because I a presume the US and others have their spies out there too, so what are they up to and would their actions withstand the light of scrutiny.

Moscow orders expulsions of two Bulgarian diplomats
Russia has expelled two Bulgarian diplomats in the latest in a succession of tit-for-tat measures amid rising tensions with the west.
The expulsions came as John Sullivan, US ambassador to Russia, announced he was returning to Washington for consultations, a decision that means both countries’ top diplomats will be absent just days after the two countries hit each other with new sanctions.

Scientists race to understand rare blood-clotting reaction to jabs
Expert debate centres on adenoviral vectors in AstraZeneca and J&J shotsAn interesting read but illustrates both the rarity of the occurrence and also the mysteries about why different people react in different ways!.Also in Companies & Markets EU watchdog finds possible rare clot link to J&J vaccine

Page 4
Carbon emissions set to surge in 2021
International Energy Agency forecasts rebound in the use of coal and gas in Asia and focused on China.
'UN secretary-general António Guterres said on Monday an “absolute priority” should be to ensure no new coal power plants were built, and that coal was phased out entirely across all countries by 2040. In the absence of urgent action, the world would not meet the Paris Agreement goal of limiting warming to 1.5C above pre-industrial levels, he said.’
China has recently defended building new coal fired stations on the basis that they are more efficient than the old ones. I guess that works as long as you shut down the old ones.

Blinken says US must take on China in green energy
US secretary of state Antony Blinken has cast renewable energy investment as imperative to America’s rivalry with China, ahead of tomorrow’s White House climate summit where Washington’s leaders hope to reassert global influence on climate policy.
The top US diplomat warned America is “falling behind” in the green economy, noting China holds nearly a third of the world’s renewable energy patents and is the world’s largest producer and exporter of solar panels, wind turbines, batteries and electric vehicles.For investors it means clean tech companies are the way to go. It also supports the investment in copper and aluminium, materials needs to transport renewable power from its source to the grid.

Taiwan woos overseas reporters kicked out of China
Taiwan is courting journalists fleeing China, spotting an opportunity to boost its visibility and build international support as concerns mount that Beijing is flirting with the idea of invading the country.
A good read, notes how Taiwan has good knowledge of what is happening in China because of its need for self preservation and highlights its response to Covid. But goes on points out that being in Taiwan makes it difficult for journalist to get interviews and personal stories that present a more nuanced picture, because executives don’t want to risk upsetting china.
It also says that Hong Kong used to be the place to decamp to but since the new national security law journalist have not been afforded the same freedoms.An interesting read.

Former premier Wen’s essay falls foul of Beijing censors
China’s censors have restricted the spread online of a personal essay written by former premier Wen Jiabao about his late mother that some dissidents said could be construed as criticism of Xi Jinping’s presidency; well one sentence “The China in my heart should be a country filled with fairness and justice, where there will forever be respect for human hearts, humanity and human nature, where there will forever be youth, freedom and struggle.”
An interesting read; partly for the insights it gives and the fact that it raises some issues in China that are taboo. It also notes that Yang was one of 'several relatives implicated in a 2012 New York Times investigation into the billions of dollars Wen’s family amassed during his premiership from 2003-13.
''Censorship of such a senior leader would have involved high-level officials and reflected deep-seated anxiety in the Communist party about any threat to Xi’s image, said Xiao Qiang, a research scientist at the University of California. “It is Xi’s own insecurity about his authority and image within Chinese society that leads to such censorship.”

I think another example of the fact that President is under pressure. Of course the banning of it will just make people want to read it more!

Companies & Markets
European leaders vow to block football Super League
• France, Italy, UK, Spain decry move
• Hurdles to intervention lie aheadAlso Super League’s wealth goals follow US leadFootball clubs plan to share contest’s revenues and cap players’ wagesAn interesting read that would see players wages being capped.

Sage advice Berkshire directors rebuked over high pay for executives likely to succeed BuffettWorth a read, 'The moves amount to the biggest sign yet of investor disquiet over governance at Buffett’s conglomerate, which spans insurer Geico, the BNSF railroad and electric utilities across the US, among many more.’It is also coming under fire for not making disclosures on environmental risks and opportunities.  

CVC ‘steps aside’ from buyout plans for Toshiba.It would appear that the offer was reliant on the full consent of the board and had a key role for ex CEO Kurumatani.  But considering his quick demise it does raise the question about whether or not it was ever a serious offer or just another weapon in the boardroom battle?
Toshiba’s shares did rally on the prospect of a bidding battle for the company but over the past few days have given back most of those gains.

India’s ban on TikTok sounds a note of caution for Big Tech
Looks how TikTok grew by playing by the book but when the political winds changed so did it’s fortunesIt also notes that other companies have had more success by having a local partner.An interesting read that really confirms what we have seen in China too; that it is the government that ultimately sets that rules … not matter how popular the app might be with the citizens.An revealing quote 'But tech has aggravated New Delhi, which feels the foreign companies that dominate social media violate its sovereignty'

Canadian National launches rival bid for KCSA bid to rival the existing bid from Canadian Pacific
Would suggest that there is a lot of money around at the moment to do deals

Credit Suisse bitten in ‘swim with sharks’
Greensill Capital blow-up is one link in a line of risk management failures that has left the Swiss lender nursing losses.A revealing read and whilst quiet shocking it is easy to see how it can happen and I would venture that it has at a lot of companies but on a smaller scale.It also underlines the important of risk management and the need for all parts of the organisation to realise that they have a part to play in the process
See also LEX Credit Suisse/prime brokers: fears for tiers. Concludes 'The question for bankers is whether stronger hedge fund returns in 2020 will prove to have reversed or merely delayed the decline in prime broking. If the prime broking pie goes on shrinking, with top tier banks hogging most of it, second-tier competitors will have to withdraw. The alternative is to take on bigger risks on behalf of less reliable clients. That is a self-defeating strategy, as Dabbs and Nelson’s fate illustrates.'

‘Bonkers’ Treasuries move leaves investors in dark
Uncertainty abounds after unusual reaction to release of upbeat data on US economy
The key point being that there is a lot of uncertainty in the markets. Some recent moves have been abnormal and that has created further worries.Worth a read, I think it reflects a re-rating of the bond market in the light of the expected return of inflation.

Oatly IPO prospectus warns over China link
Oatly, the Blackstone-backed vegan milk company which on Monday filed to float on Nasdaq, said it would consider adding a listing in Hong Kong within two years, citing its relationship with a Chinese state-owned conglomerate.
'China Resources owns about 30 per cent of the Swedish group through a 50/50 joint venture with the Belgian family investment group Verlinvest, which holds 60 per cent in Oatly. The Chinese conglomerate has helped the company to dramatically expand its presence in China in recent years.’
Seems like a very practical approach considering the current tensions.

Swedish hedge fund IPM suffers sharp drop as pandemic upends quant models
'Informed Portfolio Management, which was set up in 1998 and which also has a London office, was for years one of the most respected European quantitative companies to use macroeconomic data to trade currencies, bonds and stocks.’
But its models have been unable to deal with recent conditions because their models didn’t have historical data against which to compare recently market conditions.'
Systematic macro funds such as IPM, which base their trades on analysis of macroeconomic data, rely on being able to understand how the different assets they trade will move in relation to each other. For them, changing linkages between assets have proved a problem.’
Shows that quant models are really only as good as the historical data they have, which would suggest they work best in stable markets, where changes take place gradually. Unlike the pandemic where many changes took place overnight.

Legislation is needed to ease shift from Libor. By Michael Bright chief executive of the Structured Finance Association. The SFA’s Kristi Leo contributed to this article
More on the unease about the switch away from Libor, that was mentioned yesterday.
Concludes 'We are at a critical moment and need absolute certainty as it relates to rates and products on which ordinary Americans rely. While they may not understand how the system works, they will surely understand the disruptions to their lives if something is not done to smooth the transition away from Libor. Only Congress has the power to ensure an economically neutral outcome without years of court wrangling and confusion. Federal legislation for all Liborbased contracts is the best way to end this saga once and for all.

FT BIG READ. MEDICAL SERVICES Private equity’s bet on a cottage industry
Veterinary care is being transformed by rapid acquisitions. While some welcome the changes to a sector once dominated by small, local practices, the debt-fuelled drive is also prompting a political backlash.
An interesting look at the Veterinary care in the UK. It does note that with the firm IVC buying up so many practices that it is likely at some stage to see a Competition and Markets Authority investigation.

EDITORIAL
Western unity is key to dealing with Russia
Military build-up on Ukraine border is a threat to European security
Gives the background to the current ’tense’ situation and concludes ‘The US and EU should be ready, too, to step up economic sanctions. President Joe Biden last week banned US financial institutions from buying new Russian sovereign debt as punishment for alleged cyber hacking, signalling a willingness to use the US financial system against opponents. European countries should redouble efforts to reduce reliance on Russian fossil fuels, including finally blocking Nord Stream 2. If the west wants to appear serious about preventing Russia’s leader from trampling on international norms, it must be prepared to bear some costs.'

EU green finance rules must be sustainable
Investors need a robust guide to climate-friendly businesses
Concludes 'The EU controversy is just a forerunner. Other countries are now eyeing their own green taxonomies and many will look to Brussels for guidance. If it ends up with a system that allows the greenwashing it is supposed to prevent, the consequences will be felt well beyond the bloc itself.’
He concludes 'Far from pulling off an epochal capture of corporate America, Biden’s government is, in fact, less Wall Street-flavoured than Bill Clinton’s or Barack Obama’s. Business genuflects to his party and its mores because it is in power, not because of some historic realignment. Expect that loyalty to switch no later than the electorate’s does.’ An interesting read

OPINION
Corporate America’s woke moment won’t last. By Janan Ganesh
'That US business will tie itself in ethical knots in the coming years seems grimly predictable. If customers, potential hires and even investors want good corporate citizenship, they would be strange moralists to confine that demand to national borders. And once companies’ global doings are up for scrutiny, those as vast and many-tentacled as Amazon and Delta Air Lines are going to flunk the standards they are now setting themselves. Silence in the face of injustice is tawdry, no doubt, and perhaps bad business too. But selective righteousness, and the stain of hypocrisy, could be even worse. There was a reason for the political tact of the prior generation of CEOs, and it wasn’t uniform conservatism on their part.’

The economic recovery masks a global divide
Nothing would be more foolish than for policymakers in rich nations to ignore international challenges. By Martin Wolf
Looks at the recent IMF report and the fact that the rich nations cannot afford not to ensure that poorer nations can both deal with the health requirements but also the economic ones.

Evidence alone will determine the merits of UK bank ringfencing By Keith Skeoch chairs the UK’s independent review of bank ringfencing and proprietary tradingAsks questions about whether the post financial crisis exercised worked. An interesting read

President Xi'sSpeech
Pulling Together Through Adversity and Toward a Shared Future for All

Keynote Speech by H.E. Xi Jinping
President of the People’s Republic of China
At the Boao Forum for Asia Annual Conference 2021


20 April 2021

Your Excellencies Heads of State and Government,
Your Excellencies Heads of International Organizations,
Your Excellencies Members of the Board of Directors of the Boao Forum for Asia,
Distinguished Guests,
Ladies and Gentlemen,
Dear Friends,

“True friendship brings people close however far apart they may be.” It gives me great pleasure to attend the Boao Forum for Asia Annual Conference 2021 and meet you all in this cloud meeting. Let me begin by extending, on behalf of the Chinese government and people and also in my own name, a warm welcome to all the guests participating both in person and online, and cordial greetings and best wishes to all friends old and new.

This year marks the 20th anniversary of the Boao Forum. Over these two decades, Asian countries have advanced regional economic integration and worked in unison to pursue both economic and social development, which has turned Asia into the most vibrant and promising region in the global economy. Asia has also stood with the rest of the world in the face of terrorism, the Indian Ocean tsunami, the international financial crisis, COVID-19 and other traditional and non-traditional security threats, which has helped maintain stability and security in the region. As an important member of the Asian family, China has kept deepening reform and opening-up while promoting regional cooperation, thus achieving progress and development in tandem with the rest of Asia and the world. It is fair to say that this Forum has borne witness to the extraordinary journey of China, of Asia and of the world, and has exerted a significant influence in boosting development in Asia and beyond.

Ladies and Gentlemen,
Friends,

This year’s annual conference is convened against a very special background. The theme of the conference—“A World in Change: Join Hands to Strengthen Global Governance and Advance Belt and Road Cooperation”—is most opportune and relevant under the current circumstances.

Now, the combined forces of changes and a pandemic both unseen in a century have brought the world into a phase of fluidity and transformation. Instability and uncertainty are clearly on the rise. Humanity is facing growing governance deficit, trust deficit, development deficit, and peace deficit. Much remains to be done to achieve universal security and common development. That said, there is no fundamental change in the trend toward a multi-polar world; economic globalization is showing renewed resilience; and the call for upholding multilateralism and enhancing communication and coordination has grown stronger. While we live in an age rife with challenges, it is also an age full of hope.

Where should humanity go from here? What kind of future should we create for future generations? As we try to answer these important questions, it is crucial that we bear in mind the shared interests of mankind and make responsible and wise choices.

China calls on all countries in Asia and beyond to answer the call of our times, defeat the pandemic through solidarity, strengthen global governance, and keep pursuing a community with a shared future for mankind.

— We need consultation on an equal footing to create a future of shared benefits. Global governance should reflect the evolving political and economic landscape in the world, conform to the historical trend of peace, development and win-win cooperation, and meet the practical needs in addressing global challenges. We need to follow the principles of extensive consultation, joint contribution and shared benefits, uphold true multilateralism, and make the global governance system more fair and equitable. We need to safeguard the UN-centered international system, preserve the international order underpinned by international law, and uphold the multilateral trading system with the World Trade Organization at its core. World affairs should be handled through extensive consultation, and the future of the world should be decided by all countries working together. We must not let the rules set by one or a few countries be imposed on others, or allow unilateralism pursued by certain countries to set the pace for the whole world. What we need in today’s world is justice, not hegemony. Big countries should behave in a manner befitting their status and with a greater sense of responsibility.

— We need openness and innovation to create a future of development and prosperity. Openness is essential for development and progress. It also holds the key to post-COVID economic recovery. We need to promote trade and investment liberalization and facilitation, deepen regional economic integration, and enhance supply, industrial, data and human resources chains, with a view to building an open world economy. We need to deepen partnerships for connectivity and strengthen infrastructural links to keep the arteries of economic activities unclogged. We must seize the historical opportunities in a new round of scientific and technological revolution and industrial transformation, boost the digital economy, and step up exchanges and cooperation in such areas as artificial intelligence, biomedicine and modern energy, so that the fruits of scientific and technological innovation can be turned into greater benefits for people in all countries. In this age of economic globalization, openness and integration is an unstoppable historical trend. Attempts to “erect walls” or “decouple” run counter to the law of economics and market principles. They would hurt others’ interests without benefiting oneself.

— We need solidarity and cooperation to create a future of health and security. In the ongoing fight against COVID-19, victory will be ours at the end of the day. We must put people and their lives above anything else, scale up information sharing and collective efforts, enhance public health and medical cooperation, and give full play to the key role of the World Health Organization (WHO). It is important that we bolster international cooperation on the R&D, production and distribution of vaccines and increase their accessibility and affordability in developing countries so that everyone in the world can access and afford the vaccines they need. It is also important that we take comprehensive measures to improve global governance on public health security and work together for a global community of health for all. We need to follow the philosophy of green development, advance international cooperation on climate change, and do more to implement the Paris Agreement on climate change. The principle of common but differentiated responsibilities must be upheld, and concerns of developing countries on capital, technology and capacity building must be addressed.

— We need commitment to justice to create a future of mutual respect and mutual learning. Diversity is what defines our world and makes human civilization fascinating. The COVID-19 pandemic has made it all the more clear to people around the world that we must reject  the cold-war and zero-sum mentality and oppose a new “Cold War” and ideological confrontation in whatever forms. In state-to-state relations, the principles of equality, mutual respect and mutual trust must be put front and center. Bossing others around or meddling in others’ internal affairs would not get one any support. We must advocate peace, development, equity, justice, democracy and freedom, which are common values of humanity, and encourage exchanges and mutual learning among civilizations to promote the progress of human civilization.

In this context, I would like to announce that once the pandemic gets under control, China will host the second Conference on Dialogue of Asian Civilizations as part of our active efforts to promote inter-civilization dialogue in Asia and beyond.

Ladies and Gentlemen,
Friends,

I have noted on various occasions that the Belt and Road Initiative (BRI) is a public road open to all, not a private path owned by one single party. All interested countries are welcome aboard to take part in the cooperation and share in its benefits. Belt and Road cooperation pursues development, aims at mutual benefits, and conveys a message of hope.

Going forward, we will continue to work with other parties in high-quality Belt and Road cooperation. We will follow the principles of extensive consultation, joint contribution and shared benefits, and champion the philosophy of open, green and clean cooperation, in a bid to make Belt and Road cooperation high-standard, people-centered and sustainable.

— We will build a closer partnership for health cooperation. Chinese businesses have already started joint vaccine production in BRI participating countries such as Indonesia, Brazil, the United Arab Emirates, Malaysia, Pakistan and Turkey. We will expand cooperation with various parties in infectious disease control, public health, traditional medicine and other areas to jointly protect the lives and health of people in all countries.

— We will build a closer partnership for connectivity. China will work with all sides to promote “hard connectivity” of infrastructure and “soft connectivity” of rules and standards, ensure unimpeded channels for trade and investment cooperation, and actively develop Silk Road e-commerce, all in a bid to open up a bright prospect for integrated development.

— We will build a closer partnership for green development. We could strengthen cooperation on green infrastructure, green energy and green finance, and improve the BRI International Green Development Coalition, the Green Investment Principles for the Belt and Road Development, and other multilateral cooperation platforms to make green a defining feature of Belt and Road cooperation.

— We will build a closer partnership for openness and inclusiveness. A World Bank report suggests that by 2030, Belt and Road projects could help lift 7.6 million people from extreme poverty and 32 million people from moderate poverty across the world. We will act in the spirit of openness and inclusiveness as we work with all willing participants to build the BRI into a pathway to poverty alleviation and growth, which will contribute positively to the common prosperity of humankind.

Ladies and Gentlemen,
Friends,

The year 2021 marks the centenary of the Communist Party of China (CPC). Over the last century, the CPC has striven forward against all odds in a relentless pursuit of happiness for the Chinese people, rejuvenation for the Chinese nation, and the common good for the world. As a result, the Chinese nation has achieved a great transformation from standing up to growing rich, and to becoming stronger, and has thus made a notable contribution to human civilization and progress. China will continue to play its part in building world peace, promoting global development, and defending international order.

China will stay committed to peace, development, cooperation and mutual benefit, develop friendship and cooperation with other countries on the basis of the Five Principles of Peaceful Coexistence, and promote a new type of international relations. China will continue to carry out anti-COVID cooperation with the WHO and other countries, honor its commitment of making vaccines a global public good, and do more to help developing countries defeat the virus. However strong it may grow, China will never seek hegemony, expansion, or a sphere of influence. Nor will China ever engage in an arms race. China will take an active part in multilateral cooperation on trade and investment, fully implement the Foreign Investment Law and its supporting rules and regulations, cut further the negative list on foreign investment, continue to develop the Hainan Free Trade Port, and develop new systems for a higher-standard open economy. All are welcome to share in the vast opportunities of the Chinese market.

Ladies and Gentlemen,
Friends,

“By setting sail together, we could ride the wind, break the waves, and brave the journey of ten thousand miles.” We may at times encounter stormy waves and dangerous rapids, but as long as we pool our efforts and keep to the right direction, the giant vessel of human development will stay on an even keel and sail toward a brighter future.

Thank you.

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