Greetings and welcome to the latest edition of Peking Ensight! This week we bring a flurry of developments underscoring China’s focus on rural revitalization and its concern on the U.S. tariff policy, alongside critical policy moves to stabilize economic momentum.
⭐Under the Spotlight
China's commerce minister's letter to top US trade negotiator
Commerce Minister Wang Wentao has written a letter to Jamieson Greer, the newly appointed United States Trade Representative, congratulating him on his appointment and expressing China's concern on the U.S. tariff policy.
The two countries' economic and trade cooperation has played a key role in driving economic growth, boosting employment, and enhancing the well-being of people in both countries, Wang said, noting that a healthy and sound China-U.S. economic and trade relationship aligns with the common interests of both countries and meets the expectations of the international community.
"It is natural for China and the United States to have differences in the economic and trade field. We should address our respective concerns through equal dialogue and consultation," the minister said.
"No. 1 central document" charts rural revitalization path
China unveiled its "No. 1 central document" for 2025, outlining priorities to deepen rural reforms further and solid steps to advance all-around rural revitalization. As the first policy statement released by China's central authorities each year, the document is seen as an indicator of policy priorities.
The document consists of six parts covering six areas: ensuring the supply of grain and other important agricultural products, consolidating the achievements of poverty elimination, developing local industries, advancing rural construction, improving the rural governance system, and optimizing the rural resource allocation system.
Analysts highlight the shift toward "new quality productive forces," a nod to integrating technology and green initiatives to invigorate rural economies. With reform and opening-up, as well as scientific and technological innovation as the driving force, the country will safeguard the grain security and ensure that no large-scale lapsing or relapsing into poverty occurs.
Premier Li stresses sci-tech breakthroughs in frontier, emerging areas
During an inspection tour to companies owned by China Telecom, China Unicom and China Mobile -- the country's three leading telecom operators, Chinese Premier Li Qiang called for advancing scientific and technological innovation in frontier and emerging areas, better cultivating new quality productive forces and promoting the country's high-quality development.
He urged the three leading telecom operators to enhance their sense of responsibility, stick to innovation-driven development, and strive to provide powerful support for the country's development of emerging and future industries.
⭐Policy Moves Much Talked About
China approves pilot operations in value-added telecom services run by 13 foreign firms
China's Ministry of Industry and Information Technology (MIIT) has issued approvals to the first batch of 13 foreign-invested enterprises in Beijing, Shanghai, Hainan and Shenzhen for pilot operations in value-added telecommunications services, marking another major step in the opening-up of China's information and communication sector.
It was learnt from the ministry on Friday that the companies are permitted to engage in value-added telecom activities such as internet access and information services in accordance with the approval.
The related businesses by these firms, which have been approved for pilot operations and are predominantly affiliates of well-known multinationals, are expected to provide Chinese consumers with a more diverse range of telecom services and products. This development is anticipated to further stimulate market vitality, enhance service quality and standards, and better meet the growing digital lifestyle needs of the public.
By the end of February 2025, the number of foreign-invested telecom enterprises increased by 30 percent year on year to exceed 2,400, latest data showed.
Speed up airport customs clearance of high-tech, medical goods
Chinese authorities announced Wednesday that the country would accelerate airport customs clearance for special goods, such as high-tech equipment and raw materials, certain medicines, medical devices and biological products.
The move aims to further boost international air transport development and facilitate trade and personnel exchanges, according to a joint statement from the General Administration of Customs, the National Immigration Administration, and the Civil Aviation Administration of China.
Elderly-care robots amid aging population
The International Electrotechnical Commission has released a global standard for elderly-care robots, designed to guide the healthy development of the elderly-care robotics industry.
The standard, led by China during its formulation, provides technical benchmarks for product design, manufacturing, testing, and certification of such robots, according to a statement from the State Administration for Market Regulation released on Thursday.
To meet the multifaceted needs of elderly users in daily living and health care, the standard outlines requirements for elderly-care robots in areas such as accessibility, reliability, energy efficiency, and noise control.
It also puts forward technical requirements for health monitoring services, communication support, activity assistance, as well as information and data management.
China has issued policies to encourage the development of smart elderly care amid challenges from the aging population. The latest data shows that by the end of 2024, the population aged 60 and above in the country was 310 million, accounting for 22 percent of its total population. It is predicted that this percentage will further rise to 30 percent by 2035, with the elderly population to exceed 400 million by then.
⭐Key Macroeconomic Indicators
Spring Festival travel rush sets new record
The total number of inter-regional passenger trips across China during the 40-day Spring Festival travel rush, also known as chunyun, reached a record of 9.02 billion, marking a 7.1 percent increase over the same period in 2024.
The travel rush, which concluded on Feb. 23, often referred to as the world's largest annual human migration, highlights China's vast mobility and economic activity.
MLF operation
China's central bank on Tuesday conducted a 300-billion-yuan (about 41.83 billion U.S. dollars) medium-term lending facility (MLF) operation to maintain ample liquidity in the country's banking system.
The one-year rate remained at 2 percent, unchanged from last month. Tuesday's operation was a scaled-down rollover, as a total of 500 billion yuan of MLF will mature in February.
The central bank conducted 1.7 trillion yuan of outright reverse repos in January, which was equivalent to releasing a degree of medium-term liquidity in advance, analyst noted.
China's installed power generation capacity to exceed 3.6 billion kilowatts in 2025
China aims to bring its total installed power generation capacity to over 3.6 billion kilowatts in 2025, the National Energy Administration said on Thursday.
China will work to increase energy production this year. The country plans to maintain crude oil output at over 200 million tonnes and add over 200 million kilowatts of new energy power generation capacity.
According to the administration, China's total electricity generation is expected to reach 10.6 trillion kilowatt-hours in 2025.
In terms of green and low-carbon transformation, the proportion of non-fossil energy power generation capacity is expected to increase to around 60 percent, while the share of non-fossil energy in total energy consumption is expected to reach around 20 percent.
Compiled by Niki