IMF- India welcomes debt deal

 

IMF welcomes debt deal

The IMF has welcomed the announcement of Sri Lanka’s finalization of its debt agreements with its major official creditors. Peter Breuer, Senior Mission Chief for Sri Lanka has said that the finalization of the debt agreements is a key milestone and takes Sri Lanka one step closer towards completing its debt restructuring and restoring debt sustainability.

“We hope that there will be swift progress on reaching agreements with external private creditors in the near future,” Breuer told the media on Thursday.

On June 26, 2024, Sri Lanka concluded negotiations with the Official Creditor Committee (OCC) and China Exim Bank, marking pivotal strides towards stabilizing its financial footing amid recent economic challenges.

The agreements, valued at a combined USD 10 billion, encompass restructuring arrangements with major bilateral lenders under the auspices of the OCC, co-chaired by Japan, India, and France. Notable members of the committee include Australia, Austria, Belgium, Canada, Denmark, Germany, Hungary, Korea, the Netherlands, Russia, Spain, Sweden, the United Kingdom, and the United States of America.

2024/06/28 The Island

Sri Lanka seals debt deal with China, others after crash

Colombo (AFP) – Sri Lanka said on Wednesday it had clinched a restructuring deal with key bilateral lender China and other nations, covering up to $10 billion in debt, a critical step towards recovery after a 2022 financial crash.

The agreement is expected to revive stalled infrastructure projects, including a Japanese-funded airport expansion and a new mass transit light rail in the capital, President Ranil Wickremesinghe said.

Sri Lanka defaulted on its foreign debt in April 2022 after running out of foreign exchange, and the unprecedented economic crisis forced then-president Gotabaya Rajapaksa to step down.

"Sri Lanka concluded negotiations with the Official Creditor Committee (OCC) and the Exim Bank of China," Wickremesinghe said in a televised Sinhalese-language address to the nation.

"Sri Lanka won," he added in English while thanking the OCC, which included Japan, India, the United States, Canada and several European nations.

He said the deal with OCC nations was reached in Paris, while an agreement with the Exim Bank of China was signed in Beijing on Wednesday.

Sri Lanka secured a moratorium on repayments until 2028, he said, but gave no further details.

His supporters in the capital Colombo let off firecrackers and distributed milk rice in celebration as he spoke.

Wickremesinghe said the nation was bankrupt when he took over almost two years ago and he hoped the International Monetary Fund bailout of $2.9 billion he secured last year would be the island's last.

Colombo had gone to the IMF, the international lender of last resort, on 16 previous occasions and the debt restructuring is a condition of the IMF bailout.

Wickremesinghe has doubled taxes, removed generous energy subsidies and is set to sell off loss-making state enterprises to shore up state revenue under that deal.

Neighbouring India welcomed Sri Lanka's

deal and pledged more support.

"This milestone (agreement) demonstrates the strong progress made by Sri Lanka in stabilising its economy and moving towards reform and growth," the Indian government said in a statement.

Bilateral creditors account for 28.5 percent of Sri Lanka's outstanding foreign debt of $37 billion, according to treasury data from the end of March.

China accounts for $4.66 billion of a total of $10.58 billion borrowed from other countries.

Japan accounts for $2.35 billion and India for $1.36 billion.

The government said it was in talks with international bondholders but there was no agreement. A previous round of talks ended in deadlock in April.

Sri Lanka is unable to raise commercial loans until a deal with private creditors is struck.

However, the agreement with bilateral creditors allows the unfreezing of loans for ongoing infrastructure projects financed with funding from other countries.

Thousands of teachers from government schools went on strike in Colombo on Wednesday demanding higher pay, with police using water cannon and tear gas to disperse the protest.

Sri Lanka is due to hold a presidential election this year and opposition parties have vowed to renegotiate the terms of the IMF bailout.

The IMF's Sri Lanka mission chief Peter Breuer said the fund was willing to listen to alternative proposals from rival political parties, but said it was necessary to stick to the benchmarks set in the bailout.

Sri Lanka had made good progress but was not out of the woods yet, he said.

China Strikes Debt Deal With Sri Lanka, Cathing the IMF Off Guard

(Bloomberg) -- China reached a tentative debt agreement with Sri Lanka, front-running separate talks the International Monetary Fund and other creditors are holding with the South Asian nation and catching them by surprise. 

The deal between Export-Import Bank of China and Sri Lanka was reached late last month, China’s Foreign Ministry said Tuesday, without providing details of the pact. 

The IMF, Paris Club members including Japan, and other lenders like India are expected to hold talks this week in Morocco on a debt restructuring plan. China, which isn’t part of that official group even though it’s one of Sri Lanka’s biggest creditors, has been pursuing bilateral negotiations with the South Asian nation instead. 

Peter Breuer, senior mission chief for Sri Lanka at the IMF, said while it was aware discussions were taking place with creditors, “we have not yet been informed about any specific agreements.” The multilateral lender would need to “assess the entire package of agreements in its totality to assess consistency with IMF debt targets,” he said.

Officials from two creditor nations, who asked not to be identified, said they weren’t informed about the terms and details of the China deal. 

The preliminary pact is not expected to change efforts by the official creditor committee to try to reach a debt deal in Marrakech, which would include safeguards to prevent favorable payment terms to China, one of the people said.

An Indian official involved in the debt discussions said New Delhi has been pushing for equal and fair treatment in the restructuring plan, and hopes that all creditors are transparent in their approach. 

Sri Lanka owes about 40% of its bilateral debt to China and 16% to India, according to estimates from the IMF. Reaching a deal quickly with its creditors will allow Sri Lanka to keep tapping funds from its $3 billion bailout program with the multilateral lender.

Sri Lanka’s central bank Governor Nandalal Weerasinghe and Junior Finance Minister Shehan Semasinghe are in Marrakech this week at the IMF and World Bank annual meetings. Semasinghe met with Robert Kaproth, deputy assistant secretary for the US Treasury, he said in a post on social media platform X, with the two discussing the IMF program and the debt restructuring process.

The official creditors committee was aiming to sign a memorandum of understanding with Sri Lanka at the Marrakech meeting without the participation of China, Bloomberg News reported last month. While nothing has been finalized yet, an announcement on that deal during the meetings this week is looking increasingly unlikely, according to people familiar with the situation, who asked not to be identified.. 

The Exim Bank deal comes a week before China hosts its third Belt and Road Forum in Beijing, a flagship program by President Xi Jinping that has faced criticism for burdening developing nations like Sri Lanka with debt.⍐ 

--With assistance from Anusha Ondaatjie, Ruchi Bhatia, Ramsey Al-Rikabi and Toru Fujioka.

Bloomberg News, Oct 11, 2023 

137 Indians arrested in Sri Lanka over massive online financial scam

 

Sri Lanka Police says a total of 137 Indian nationals who are allegedly part of a group engaged in a large-scale online financial scam operation have been arrested by the Criminal Investigations Department (CID) within yesterday (27) from multiple locations in the country.

Police Media Spokesman DIG Nihal Thalduwa stated that in Negombo, 55 suspects were detained, along with the seizure of 55 mobile phones and 29 laptops. 

In Kochchikade, 53 suspects were apprehended, and authorities seized 31 laptops and 58 mobile phones. 

The operation in Madiwela, Sri Jayawardenepura Kotte led to the arrest of 13 individuals and the seizure of 8 laptops and 38 mobile phones, while in Thalangama, Battaramulla, 16 suspects were taken into custody, with 8 laptops and 38 mobile phones recovered. 

In total, 158 mobile phones, 16 laptops, and 60 desktop computers were seized from 137 Indians arrested, he said.

The Police Spokesman said that the suspects had arrived in the country on tourist visas and that they had been engaged in an illegal online betting operation from leased out properties at these locations.⍐ 

ADA June 28, 2024

 

Pic: SL Navy

Fleet Chief Petty Officer PDP Rathnayake laid to rest with full Navy honours

In a solemn ceremony filled with deep reverence and respect, Fleet Chief Petty Officer PDP Rathnayake was laid to rest with full Navy honours at Hipauwa General Cemetery in Ibbagamuwa on 27th June 2024. The senior sailor succumbed to his injuries, during an operation to seize an Indian trawler poaching in Sri Lankan waters on 25th June off Kankasanthurai, Jaffna. The funeral ceremony was attended by Fisheries Minister, Hon. Douglas Devananda and members of Northern Fishermen Cooperative Associations.

Meanwhile, Commander of the Navy, Vice Admiral Priyantha Perera and the President of Navy Seva Vanitha Unit, Mrs Mala Lamahewa also paid their last respects to the deceased senior sailor on 26th June. Ven. Members of Maha Sangha, senior and junior officers, sailors, bereaved family members and a large number of residents from the area attended the funeral ceremony.

Attending the funeral, members of Northern Fishermen Cooperative Associations expressed their condolences to the family members of the senior sailor who tragically lost his life during an operation conducted by the Navy, aimed at safeguarding the livelihood of the local fishing community. They also mentioned that the northern fishing community holds great respect for the Sri Lanka Navy due to their relentless efforts and the risks they undertake to prevent poaching activities by Indian fishermen in Sri Lankan waters.⍐

New York Times: The debate got personal. Here’s what to know.

June 27, 2024,

22 minutes ago

Michael D. Shear

This is the fifth presidential election that Michael Shear has covered in 16 years as a White House correspondent.

The debate got personal. Here’s what to know.

Former President Donald J. Trump repeatedly delivered aggressive, often misleading attacks against a shaky President Biden during a 90-minute debate Thursday night, offering millions of voters a stark contrast amid a high-stakes rematch in which Mr. Biden’s performance was repeatedly foggy and disjointed.

Mr. Trump, 78, made wild assertions and false statements, remaining unapologetic about his alternate-reality claims about the 2020 election, while avoiding a grievance-filled rant. Mr. Biden, 81, spoke rapidly and appeared to meander through his answers, fumbling at the end of sentences even as he accused Mr. Trump of being a liar and a threat to democracy.

Here’s what else to know:

• Opening salvos: The debate started with a dramatic contrast between the two candidates. Mr. Trump responded to questions about taxes, inflation and abortion with aggression and discipline, repeatedly criticizing Biden’s administration. Mr. Biden was halting and over-programmed, losing his train of thought on the subjects of Medicare and abortion. Mr. Biden spoke rapidly, sometimes appearing to mumble his words.

• Trump pounces early: Mr. Trump seized on Mr. Biden’s shakiness and early stumbles to underscore Republican questions about the president’s mental capacity. When Mr. Biden trailed off during an answer on immigration, Mr. Trump quickly offered: “I really don’t know what he said at the end of that sentence. I don’t think he knows what he said, either.” After an answer by Mr. Biden on immigration, Mr. Trump claimed that the president had allowed terrorists and criminals to cross the border. “I call it Biden migrant crime,” Mr. Trump said.

• Democrats worry about Biden’s performance: Within minutes of the debate’s start, Democrats began wringing their hands about Mr. Biden’s performance. On social media, in chats and in emails, the president’s supporters freaked out about the president’s trembling voice, his disjointed answers and his apparent confusion during some of his responses. Concerns about Mr. Biden’s age, which have been simmering for months, burst into public view before the debate was over.

• Biden and Trump get personal: The president lashed out at his rival in ways that might have once been unheard-of on a presidential debate stage, noting that Mr. Trump was the “only person on this stage that is a convicted felon” and bringing up lawsuits accusing him of molesting a woman and having sex with a porn star “on the night while your wife was pregnant.” He said Mr. Trump had the “morals of an alley cat.” Mr. Trump responded by referring to the criminal conviction of Mr. Biden’s son Hunter, saying, “His son is a convicted felon at a very high level.”

• Trump ignores moderators: Mr. Trump largely ignored questions from the moderators, using his time to boast about himself and attack Mr. Biden. The former president did not repeatedly interrupt his rival as he did at the first debate in 2020. But he spent his time repeatedly hammering Mr. Biden as “the worst president” in the history of the country. Several times, Mr. Trump finished his answers without taking his full time, prompting the moderators to repeat the original question.

• Trump’s blizzard of lies: Mr. Trump reprised his habit of offering a flurry of assertions that are false, something that he honed during his first two campaigns and as president. Fact-checkers caught him being misleading on the damage to social security, the environment, the Jan. 6 riot and the increased cost of food. He repeated his false claims that the Justice Department had been involved in the state cases against him.

• Biden sharpens in defense of NATO: In one of Mr. Biden’s strongest moments, he forcefully accused Mr. Trump of being willing to abandon Ukraine in the face of Russian aggression. “I’ve never heard so much foolishness,” the president said. “This, the guy who wants to get out of NATO. Are you going to stay in NATO?” The comment punctuated a fierce back and forth over the role of the United States in the world. Mr. Trump’s retort: “The only reason that he can play games with NATO is because I got them to put up hundreds of billions of dollars.”

• Biden stumbles on abortion: Coming into the debate, abortion was supposed to be one of the strongest issues for Mr. Biden. But his answer to a question about the procedure prompted concern among his allies. He started by talking about Mr. Trump’s desire to let states decide whether abortion is legal. But he stumbled through a story about a young woman “who just was murdered” and referred to a funeral that Mr. Trump attended. The intent appeared to be to call into question the former president’s claims about illegal immigrants raping women, but Mr. Biden’s stumbles made it difficult to understand. “There’s a lot of young women to be raped by their, by their in-laws, by their, by their spouses, brothers and sisters. It’s just ridiculous.”

                                                                     

How to watch Trump, Biden in 2024 'CNN Presidential Debate'

Watch Here

What time is the debate tonight? 

How to watch Trump, Biden in 2024 'CNN Presidential Debate'

President Joe Biden and former President Donald Trump will take the stage Thursday night in Atlanta in the first head-to-head presidential debate of the 2024 election.

The debate airing on CNN will differ from previous debates between the two candidates in a few notable ways, thanks to rules put in place by the network: there will be no live audience, and all microphones will be muted except for the candidate whose turn it is to speak.

Both candidates may spar over their respective ages (Biden is 81, Trump is 78), as well as Trump's recent criminal conviction, their stances on abortion and the Israel-Hamas war.

Robert F. Kennedy Jr., who is running as an independent candidate, did not qualify for the debate and will not join Trump and Biden on stage.

Here's how to watch the "CNN Presidential Debate", the first of the 2024 election cycle between Trump and Biden.

LIVE UPDATES 

Presidential debate: Trump and Biden in Atlanta for 9 p.m. EST debate

What time is the CNN Presidential Debate?

The "CNN Presidential Debate" will air on CNN Thursday, June 27 beginning at 9 p.m. EDT.

How to watch the 'CNN Presidential Debate' on TV, streaming, online

The debate will air live Thursday, June 27 at 9 p.m. EDT on CNN, CNN International, CNN en Español and CNN Max. It will also stream on CNN.com for people without a cable subscription.

You can also watch it via simulcast on USA TODAY's YouTube channel.

Who is moderating the CNN Presidential Debate?

The debate will be moderated by CNN anchors Jake Tapper and Dana Bash.⍐

U.S. and Japan face disconnect over further China chip controls

Trilateral with South Korea produces agreement on supply chain cooperation

From left, Japanese Economy, Trade and Industry Minister Ken Saito, U.S. Commerce Secretary Gina Raimondo,
and South Korean Trade, Industry and Energy Minister Ahn Duk-geun in Washington on June 26.
(Photo by Shunsuke Ushigome)

 

WASHINGTON -- The U.S., Japan and South Korea have agreed to work together to strengthen their supply chains for critical goods, including high-tech chips, but stopped short of tightening trade curbs against China despite Washington's efforts.

U.S. Commerce Secretary Gina Raimondo, Japanese Economy, Trade and Industry Minister Ken Saito, and South Korean Trade, Industry and Energy Minister Ahn Duk-geun discussed supply chain cooperation Wednesday at their first trilateral meeting in Washington.

With the presidential election approaching, the Biden administration has toughened its stance on trade with China, taking such steps as raising tariffs on electric vehicles. Alan Estevez, the U.S. undersecretary of commerce for industry and security, put pressure on Japan's trade ministry about its semiconductor export restrictions during a visit there last week.

In a joint statement after Wednesday's meeting, Raimondo and her counterparts made implicit references to China, such as a mention of "concerns over recent non-market measures" that risk disrupting supplies of critical minerals.

In an expanded meeting the same day that also included a European Union official, participants took "great interest" in Chinese overproduction of less-advanced legacy chips, Saito said.

Washington, Tokyo and Seoul agreed to focus on supply chain reliability and sustainability, not just low prices, in the support they provide to their respective semiconductor industries. But the statement mentioned nothing about the tougher export restrictions that the U.S. had pushed for behind the scenes.

The U.S. and Japan have differing intentions for these curbs.

Washington is worried about China's ability to produce cutting-edge semiconductor devices. Japan and the Netherlands followed the U.S.'s lead in 2023 when they limited exports of manufacturing equipment for advanced chips.

Despite this, Huawei Technologies managed to come out with smartphones equipped with 7-nanometer chips made on older equipment.

An increasingly alarmed Washington is calling for more drastic measures that include restrictions on maintenance and inspection services for existing chipmaking machinery.

Chinese manufacturers stocked up on equipment and components before the current controls took effect. Chinese customs data shows a sharp jump in chipmaking equipment imports from Japan and the Netherlands starting shortly before the restrictions were implemented.

But these services are harder to restrict than the equipment itself.

While the U.S. generally bans American engineers from participating in developing and producing advanced chips in China, Japan's curbs aim to keep technology from being transferred across the border. It would be difficult to place new restrictions on the facilities that companies have already set up in China to provide maintenance services.

Some observers also see a possibility that the U.S. could try to further squeeze Chinese production of chips by targeting materials used to make them -- an area where Japan is a major player.

Tokyo worries that if it moves to broaden its controls, Beijing could retaliate by cutting off supplies of critical minerals, for example -- a scenario it is not fully prepared for.

Japan's industry ministry earmarked roughly 4 trillion yen ($25 billion) over the three years from fiscal 2021 to grow the nation's semiconductor industry, and companies have been starting to ramp up investment in the field.

"We oppose an expansion of regulations that would block the industry's development," a senior ministry official said.⍐

Adani power project in SL : SJB accuses of financial fraud

 

Sri Lanka’s main opposition, the Samagi Jana Balawegaya (SJB), has questioned the government’s approval of the proposed project to develop wind power stations in Mannar and Pooneryn with M/s Adani Green Energy Limited of India.

Addressing the media, former SJB MP Ajith P. Perera said a large-scale financial fraud is being carried out due to the government, especially President Ranil Wickremesinghe and Minister of Power and Energy Kanchana Wijesekera, giving away the wind power sector in Sri Lanka’s power industry. 

Backing his claims, SJB’s Perera said the government has approved the purchase of power at $0.0826 per KW for the electricity generated under the proposed project to develop wind power stations in Mannar and Poonerin by M/s Adani Green Energy Limited of India.

Stating that the project had been awarded to the Adani Group without calling for tenders, SJB’s Perera said this would cause Sri Lanka to lose millions of dollars in loss for 20 years. 

He said, however, that the wind power station proposed by WindForce PLC, which owns a 100% effective holding in Hiruras Power (Pvt) Ltd, offers almost half the price quoted by the Adani Group, for the purchase of electricity.

“The CEB has called for tenders and has picked WindForce PLC to construct a 50 MW wind power station in Mannar,” he said. 

The former SJB MP pointed out that WindForce PLC has quoted $0.0488 per KW to provide electricity, which is half the price of what has been offered by the Adani Group. 

Ajith P. Perera said the government has engaged in a large-scale fraud via the wind power project by the Adani Group and that Sri Lanka will incur a loss of over a billion US Dollars.⍐ 

(Newswire- June 27, 2024)

North Korea May Send Forces To Occupied Territories

As part of its recently signed mutual aid pact with Russia, North Korea is planning to send forces into in Ukraine as early as next month, according to Reuters.

The agreement calls for Pyongyang to send construction and engineering forces to Russia-occupied territories of Ukraine for rebuilding work. The outlet cited a South Korean government official quoted by the South Korean TV Chosun cable network. There was no indication of how many personnel would be involved or the exact nature of their work.

Regardless of what they do or where they go, those forces would be “cannon fodder,” the Pentagon’s top spokesman said Tuesday.

Air Force Maj. Gen. Pat Ryder was responding to a question about the Russia-North Korea agreement.

Ryder said North Korea should think twice about fighting in Ukraine.

“That’s certainly something to keep an eye on,” he told reporters on Tuesday about the potential for North Korean troops to set foot in Ukraine. “I think that if I were North Korean military personnel management, I would be questioning my choices on sending my forces to be cannon fodder in an illegal war against Ukraine. And we’ve seen the kinds of casualties that Russian forces – but again, something that we’ll keep an eye on.”

North Korea has already been providing artillery shells and missiles to Russia. There are growing concerns that Russian expertise might be used to help with the further development of Pyongyang’s ballistic missiles and nuclear weapons — as well as other weapons and technologies. Even just sending large numbers of laborers to setup fortifications and rebuild critical military infrastructure in occupied areas would be a problem for Ukraine.

The possibility of North Korean despot Kim Jong-un sending personnel to Ukraine on Russia’s behalf is something we previously explored almost a year ago.

Last August, a Russian talk show host claimed that 100,000 North Korean “volunteers” were ready to assist Russia in Ukraine.

Russia Channel One talk show host Igor Korotchenko suggested Russia welcome the North Koreans’ help not only on the frontlines but also as workers. Pyongyang confirmed a plan to send laborers to rebuild occupied Ukraine, according to a report from NK News at the time.

Clearly, that has yet to transpire. However, as the war in Ukraine drags on, relations between Moscow and Pyongyang continue to grow amid mutual need by both nations. Whether North Korean forces actually do arrive in Ukraine remains to be seen, but the threat that they will is exacerbating tensions on two continents.⍐

Note: THE WAR ZONE 'Ukraine Situation Report' Edited by ENB

Summer Davos concludes, highlighting China's critical role on global stage

 

Summer Davos concludes, highlighting China's critical role on global stage

Experts, scholars hail nation's 'certainties' as worldwide risks soar

By Tao Mingyang, Liu Yang and Yin Yeping in DalianPublished: Jun 27, 2024 10:30 PM Global Times

The 15th Annual Meeting of the New Champions (AMNC24), also known as the Summer Davos, wrapped up on Thursday with officials, economists and business leaders from around the world concluding their three-day discussion covering topics spanning from technology, economics and geopolitics and highlighting China's key role in driving the global economic growth.

At the event, Chinese and international business leaders and scholars hailed "certainties" from China amid a turbulent world and highlighted China's critical role in helping address growing challenges, including the global economic downturn.

The AMNC24, featuring the theme "Next Frontiers for Growth," concluded on Thursday in Dalian, Northeast China's Liaoning Province. It drew the attendance of over 1,600 participants from business, government, civil society, international organizations and academia from about 80 countries and regions.

As one of the most important international economy-themed forums, the Summer Davos offered the world an opportunity to better understand important trends across various fields, Hu Qimu, a deputy secretary-general of the Digital-Real Economies Integration Forum 50, told the Global Times on Thursday, noting that hot topics during the forum are more likely to become key elements that steer the world's economy growth.

Compared with the first two days' spotlight on specific discussions addressing artificial intelligence (AI), climate change, food and energy security, panels held on the third day - Thursday - attached more importance on how China could drive the world forward.

Peng Sen, president of China Society of Economic Reform, said on Thursday during a panel discussion named "China Economic Outlook" that China's economy achieved a growth rate of 5.2 percent in 2023, contributing around 30 percent to global growth despite significant pressure, and the growth rate hit a remarkable 5.3 percent in the first quarter of 2024, beyond expectation.

"I'm fully confident that China can achieve its GDP growth goal of around 5 percent. We need high-quality growth in order to stimulate our development and our growth. This depends on the transition, the revolutionary transformation, on the technological front, and as for the traditional sectors, they need upgrade and they need a deep transformation," Peng said.

Jin Keyu, professor of economics from the London School of Economics and Political Science, said on Thursday at the forum that China is spearheading the structural transformation via electric vehicles (EVs) and solar panels, which was much earlier than most Western economies, adding that China will play an essential role in the global green transition.

Jin noted that "trillions of dollars of investment is needed" for the global green transition, adding that "China is going to play a very essential role" in the transformation.

She highlighted that China's new innovative business models, and the digital economy, accounting about 40 percent of the country's GDP, are a practical and cost-effective solution to many developing countries' present problems.

When Chinese Premier Li Qiang addressing the opening plenary of the Summer Davos, he emphasized that China has unique comparative advantages to foster new industries, including an ultra-large market with a population of over 1.4 billion, a complete industrial system, abundant human resources, diverse application scenarios, and consumers' high acceptance of new technologies.

"We have the confidence and capability to achieve the growth target of around 5 percent for this year," Li said.

In terms of trade and technology protectionism signs in multilateral cooperation, Premier Li stressed that China will promote inclusive and mutually beneficial development, which was hailed by experts attending the AMNC24.

Following a panel discussion theme with "US-China Relations Analyzed," Li Cheng,professor of political science from University of Hong Kong, told the Global Times on Thursdaythat China-US technology cooperation witnessed a rapid falloff over the past few years due to US policies targeting China.

Premier Li said that if countries only think about maximizing their own interests without considering that of others, and even turn back the wheel of history by decoupling and cutting off industrial and supply chains with the "small yard and high fence" policy, it will only raise the cost of global economic operations, sever economic ties between regions and intensify contradictions and disputes.

"China has world-leading scientists and engineers, and US' protectionism and bias may force them back to China and other Asian countries. It is actually not in line with US' interests," Li Cheng noted.

In order to set a stable foundation for economic growth and avoid the impact of global uncertainty, China will foster new quality productive forces by launching a series of key projects covering AI, integrated circuits and global computing power network to empower traditional technologies, Peng said.

China has seen a steady economic performance so far in 2024, with the country's retail sales of consumer goods hitting 19.52 trillion yuan ($2.69 trillion) from January to May this year, up 4.1 percent year-on-year, according to the National Bureau of Statistics.

Hu noted that China might be the only economy that can drive the world out of its current whirlpool of decline in a peaceful and moderate way.

"The reason why China-related topics are so important and attract much attention is because the world is looking for certainties in China amid soaring global uncertainties," Hu said.

China's economic growth in the second half of 2024 is also a major topic underlined by AMNC24 participants, as Peng noted that stable growth in China will be good news for the world.

"Currently, there are still some challenges facing China's economy, including unreleased domestic consumption potential and global uncertainties. But the country's economy can be greatly boosted through countercyclical policies and new growth momentum generated from new quality productive forces," said Peng.

Regarding the coming third plenary session of the 20th Communist Party of China (CPC) Central Committee scheduled to be held in July in Beijing, Peng projected that there will be more marco-related policies to be released.

Li Cheng said that aside from economic stimulus, China has vast room for conducting urbanization and it might be a new growth engine for China.⍐