Connect with us

ASIA

China’s Third Plenum begins with call to ‘push forward modernisation’

Published

on

Chinese Communist Party officials are gathering in Beijing from Monday to Thursday for the third plenary session of the 20th Central Committee, also known as the Third Plenum.

China’s state-run Global Times wrote that they are watching to see how the meeting will “set priorities for comprehensively deepening reform, draw up a blueprint for long-term economic development and open a new chapter in the country’s march towards Chinese modernisation”.

The meeting comes at a critical time for China’s economy, with policymakers grappling with an ongoing property crisis and sluggish domestic demand, as well as trade barriers and geopolitical threats from the West. On Monday, China released gross domestic product data for the second quarter, with growth coming in below forecasts at 4.7 per cent.

What is the Third Plenum?

The Central Committee of the Communist Party, comprising around 200 senior members and headed by President Xi Jinping, is a key decision-making body in China’s political system. It holds a total of seven plenary sessions, or plenums, in Beijing during its five-year term. The meetings produce documents that shape the country’s policies for years to come. The current Central Committee was elected in 2022.

The Third Plenum is closely watched because of its historic influence on economic policy. It was here that Deng Xiaoping announced his historic “reform and opening up” initiative in 1978. In 1993, the plenum endorsed the socialist concept of a market economy.

What is the procedure?

After discussions at the meeting, a statement is voted on and usually adopted on the day the meeting ends, and a full document detailing the decisions is usually published a few days later. A draft of the document was unveiled by the Politburo, the party’s top leadership body, state media reported in June. The title of the draft gave a hint of what was to come: “Deepening reform more comprehensively and pushing forward Chinese-style modernisation”.

The main topic of the meeting

There was no official announcement about the timing of the session. Observers had expected the third plenary session to be held last autumn. Instead, state media reported in April that it would be held in July. This led to speculation that the meeting had been postponed to allow time for basic policy decisions to be made.

The previous third plenum in 2018 focused on reforming party and state institutions rather than the economy, but this week’s meeting is expected to focus on the economy.

“This is the first third plenum in 11 years whose main theme is economic reform,” said Hiroya Yamauchi, a China and Asian markets expert at Nikko Asset Management in Tokyo.

At a meeting of the Political Bureau of the CPC Central Committee chaired by Xi Jinping, general secretary of the CPC Central Committee, in June, it was noted that the upcoming plenum will mainly focus on issues related to deepening reform more comprehensively and pushing forward China’s modernisation, according to Chinese state agency Xinhua.

Next year the government is due to update its five-year economic plan, and the meeting is also important in the context of these plans.

The economic plenums are also seen as an opportunity to explain China’s strategic goals to the world.

A key priority for Xi Jinping is to achieve scientific and technological self-sufficiency. China has made great strides in areas such as electric vehicles and batteries, and is investing heavily in building its own semiconductor supply chain. Xi has often called for the development of “new quality productive forces” at meetings, and this is expected to be on the agenda of the communique.

The meeting is also seen as an opportunity to restore economic confidence among businesses and investors. Although the economy grew by 5.3% in the first quarter, consumer demand has yet to recover from the economic impact of the COVID-19 pandemic.

China’s consumer confidence index fell from over 120 in February 2022 to 86.7 in April that year, and has remained below the pessimistic threshold of 100 ever since.

“External pressure is increasing … and it is necessary to realise that Western developed countries will continue the policy of protectionism, destruction of production chains and creation of technological barriers [targeting China] for decades to come,” Alexander Lomanov, deputy director of scientific studies at the Primakov National Research Institute of World Economy and International Relations of the Russian Academy of Sciences, told the Global Times.

Lomanov added that it was therefore important for the Third Plenum to draw up a high-level blueprint for the country’s economic course and updated reform priorities. Lomanov also suggested that China should speed up reform and opening-up measures to overcome numerous challenges, such as redoubling efforts to open up to the outside world and expanding the circle of new partners.

What do companies and investors expect?

Some are hoping for major stimulus measures to boost domestic consumption. Of particular concern is the property sector, where the decline in new and existing home prices accelerated in May despite measures such as incentives for state-owned enterprises to buy unsold homes.

There is no official indication that this issue will be addressed at the Third Plenum. A related issue that economists say may come to the fore is tax reform. For example, allocating more tax revenue to local governments, which have traditionally relied heavily on land sales, could help contain the property crisis.

On the other hand, experts believe that the third plenary session will focus on longer-term policies.

Political observers are also watching the reshuffle. Former foreign minister Qin Gang and former defence minister Li Shangfu were removed from their posts last year as part of an investigation. Li was formally expelled from the party in June for taking bribes, while Qin is still a member of the Central Committee. However, everyone agrees that the meeting will focus on the economy in general.

ASIA

A passenger plane travelling from Baku to Grozny crashes in Kazakhstan

Published

on

A passenger plane travelling from Baku to Grozny in Kazakhstan crashed near the city of Aktau. According to Tengrinews, the crew signaled an emergency before the crash occurred.

The Ministry of Transport of Kazakhstan confirmed that the Embraer E190 aircraft, operated by Azerbaijan Airlines (AZAL), was carrying 62 passengers and 5 crew members. Among the passengers were 37 citizens of Azerbaijan, 16 citizens of Russia, 6 citizens of Kazakhstan, and 3 citizens of Kyrgyzstan.

Rescue teams from the Kazakhstan Ministry of Emergency Situations, along with 14 ambulances, were dispatched to the crash site. Reports indicate that 28 people have been rescued, including one child. The injured passengers were transferred to Mangistau Regional Hospital in Aktau, where Kazakhstan Health Minister Akmaral Alnazarova stated that the condition of six individuals was critical.

Preliminary investigations suggest the crash may have been caused by a collision with a flock of birds. Azerbaijan Airlines reported that the aircraft crashed near Aktau Airport while attempting to land on a spare runway.

According to officials from Grozny Airport, the aircraft was initially diverted to Makhachkala due to dense fog in Grozny, the capital of Chechnya, and later rerouted to Aktau. The crew signaled an emergency at 08:35, citing a malfunction in the aircraft control system. Emergency landing permission was requested at 08:49, and the crew attempted a manual landing in direct mode. However, the aircraft struck the ground at 09:28.

Authorities, including Rosaviatsiya (Russian Civil Aviation Authority) and aviation officials from Azerbaijan and Kazakhstan, are investigating the incident. A government commission was established on the instructions of Kazakhstan President Kassym-Jomart Tokayev to determine the cause of the crash.

In response to the tragedy, Azerbaijani President Ilham Aliyev cancelled his participation in the informal CIS Summit in Russia and decided to return to Baku.

Continue Reading

ASIA

Trust issue: Pakistan and Afghanistan to boost up fraternal ties

Published

on

Pakistan’s Special Representative for Afghanistan, Ambassador Mohammad Sadiq, and his delegation, visited Kabul and held a series of talks with the top Taliban leadership, including interior and foreign ministries.

This is Sadiq’s first visit to Kabul after being assigned as Special Representative for Afghanistan and the reason for his visit was to enhance mutually beneficial cooperation in various fields and advance the fraternal ties between the two neighboring countries, Afghanistan and Pakistan.
Sadiq announced the trip on X, saying, “looking forward to meaningful discussions with Afghanistan’s interim ministers (Taliban officials) to strengthen mutually beneficial cooperation.”

During the trip, Sadiq first met with Sirajuddin Haqqani, the Taliban’s acting interior minister – who has lots of influence in Khost, Paktia and Paktika provinces. According to Pakistan, these provinces are the places of movement of Tehreek-e-Taliban Pakistan (TTP), and basically, Kabul and Islamabad relations deteriorated as Pakistan wants Afghanistan to smash on the movements of the TTP inside Afghan soil. However, the Taliban leadership says there are no TTP fighters in the country, and Taliban will not allow any group, including TTP to pose a threat to Afghanistan and to the regional countries.

During the meeting, Sadiq and Haqqani discussed a range of bilateral issues of common interest. Both sides agreed to strengthen bilateral cooperation in various fields to further enhance the fraternal relations between the two countries. The Afghan Ministry of Interior in a statement said that both sides discussed important topics for the improvement of relations between Afghanistan and Pakistan and the solution of existing problems. The Pakistani delegation also expressed their condolences on the assassination of Khalilur Rehman Haqqani, the uncle of Sirajuddin Haqqani and key member of the Haqqani network.

Sadiq first met with Interior Minister Sirajuddin Haqqain against diplomatic norms to first meet with Foreign Minister 

Khili Haqqani was the first Taliban official who entered Kabul when the Taliban overthrew the former Afghan government following withdrawal of US troops from Afghanistan after 20 years of presence. He has served as refugee minister since victory day on August 15 2021. He was killed by a Daesh suicide bomber inside his ministry compound.

Referring to the pessimism of the Taliban leader towards the Haqqani network, the former deputy of the European Union in Afghanistan, Michael Semple does not consider it unlikely that the members of the Taliban supreme leader were involved in the assassination of Khalil Haqqani. Michael Semple said that his assassination dealt a heavy blow to the Haqqani network and that the Taliban would likely pay a price for this.

The Haqqani family has denied the involvement of members of the Taliban supreme leader in the assassination of Khalil Haqqani. Haqqani family members insisted on the unity of the Taliban and the Haqqani family’s obedience to Hebatullah Akhundzadeh, the Taliban’s supreme leader. Their statements were made to deny rumors of differences or the involvement of people close to Hebatullah in Khalil Haqqanis assassination.

But Semple says that Hebatullah was particularly concerned about the Haqqani network’s contacts with Taliban opposition groups and foreign powers.

He added that Khalil Haqqani was more active in this field compared to other Taliban officials, because he had a political and social personality.

Semple said that Khalil Haqqani had connections with the Taliban opposition front and some foreign powers. According to him, although the Haqqani network, especially Sirajuddin Haqqani, have tried to convince the Taliban leader that they are aligned and united, Hebatullah has doubts about them.

He emphasized that Khalil Haqqani had contacts with Sirajuddin, which seemed “illegitimate” from Hebatullah’s point of view.” Sepmel reminded that Khalil Haqqani is not the first Taliban minister who was killed. During the first period of Taliban rule, Mullah Abdul Raqib was killed due to foreign contacts.

Former deputy of the European Union in Afghanistan underlined trust issue between Kandahar Taliban and the Haqqani’s 

The former diplomat. Sempel said that it is possible that the suicide bomber was a member of ISIS in the past, but he managed to assassinate Haqqani with the support of the Kandahar faction.

Sample clarified that the loss of Khalil Haqqani has put a serious blow to the Haqqani network, adding that Khalil Haqqani was one of the survivors of Jalaluddin Haqqani, the leader and founder of Haqqani network, who played a major role in the diplomacy of this network.

Pakistan Special Envoy Sadiq met with Foreign Minister Amir Khan Muttaqi, where they agreed to work together to further strengthen bilateral cooperation as well as for peace and progress in the region.

Meanwhile, Sadiq also met with Foreign Minister Amir Khan Muttaqi on Tuesday, where they held wide ranging discussions. “Agreed to work together to further strengthen bilateral cooperation as well as for peace and progress in the region,” Sadiq said.

The Afghan Foreign Ministry in a statement said both sides discussed bilateral relations between Afghanistan and Pakistan, enhancing diplomatic relations, trade, transit, and people-to-people relations.

Also, Sadiq met with Afghan traders and chamber representatives from across Afghanistan to discuss enhanced trade cooperation and economic ties, fostering a stronger bilateral relationship between Pakistan and Afghanistan.

The visit comes at a time where ties between Islamabad and Kabul have deteriorated in recent months, especially tensions have flared over the activities of the TTP, an armed group that has escalated attacks in Pakistan since the Taliban took control of Afghanistan in 2021.

Pakistani top officials, including Prime Minister and the country’s defense minister accused the Taliban of providing safe havens for TTP, an allegation the Taliban denied in strongest possible terms.

Pakistan says that Kabul allowed the TTP fighters to cross the border and carry attacks against the country’s security forces and border guards.

Continue Reading

ASIA

China plans $411bn private treasury bond issuance in 2025

Published

on

Chinese authorities have approved a record issuance of 3 trillion yuan ($411 billion) in private treasury bonds for 2025, according to two sources cited by Reuters. The move signals Beijing’s commitment to using fiscal stimulus to address economic stagnation.

This represents a significant increase from the 1 trillion yuan issued this year and coincides with preparations for potential tariff hikes on Chinese imports as Donald Trump is expected to reassume the U.S. presidency in January.

The proceeds will target initiatives such as consumer subsidies, business equipment upgrades, and investments in innovation-driven sectors. According to the sources, who spoke anonymously due to the sensitivity of the issue, the plan underscores China’s proactive approach to offsetting deflationary pressures.

Officials from the State Council Information Office, Ministry of Finance, and National Development and Reform Commission (NDRC) did not immediately comment on the development.

Following the announcement, yields on China’s 10-year and 30-year treasury bonds rose by 1 basis point and 2 basis points, respectively. The planned issuance, the largest on record, demonstrates Beijing’s willingness to expand borrowing to stabilize the world’s second-largest economy.

China generally reserves ultra-long-term corporate bonds for extraordinary circumstances, reflecting the significance of this initiative.

Approximately 1.3 trillion yuan from the new issuance will fund “two major” and “two new” programs: A consumer subsidy program to encourage trade-ins for new vehicles and appliances, subsidies for large-scale business equipment upgrades, and infrastructure projects in critical sectors, including railways, airports, and farmland.

The NDRC reported that 70% of the proceeds from this year’s bond issuance funded major projects, while the remainder supported new schemes.

Another significant portion, exceeding 1 trillion yuan, will drive investments in advanced manufacturing, including electric vehicles, robotics, semiconductors, and green energy. Additionally, funds will recapitalize state-owned banks struggling with shrinking margins, declining profits, and rising non-performing loans.

The issuance will account for 2.4% of China’s 2023 GDP. For comparison, Beijing’s 2007 issuance of 1.55 trillion yuan represented 5.7% of GDP at the time.

The announcement follows the annual Central Economic Work Conference, where President Xi Jinping and senior officials outlined economic plans for 2025. The state media summary emphasized “steady economic growth,” raising the fiscal deficit ratio, and increasing government debt issuance, without detailing figures.

Recent Reuters reports indicate China may raise its budget deficit to a record 4% of GDP and aim for an economic growth target of around 5% next year.

China’s economy faces multiple headwinds, including a protracted property crisis, rising local government debt, and weak consumer demand. Exports, traditionally a growth driver, risk new U.S. tariffs of over 60%, threatening another economic lifeline.

Domestic consumption remains subdued, with households grappling with falling property values and minimal social safety nets. To counter weak demand, Beijing plans to expand its consumer and industrial equipment swap programs to more products and sectors.

Continue Reading

MOST READ

Turkey