Second, capital outflow pressure has been gradually allevia

Since October 2018, emerging markets have once again gained favor from international capital.

In this context, the MSCI expansion of A shares and the inclusion of A shares into the FTSE Em

erging Markets Index will likely happen in 2019, with foreign investment attracted by such major international o

pportunities. Latest data showed that in the fourth quarter of 2018, net inflow of direct investment by overseas financial ins

titutions soared to $2.14 billion, marking the highest level since the third quarter of 2015. Thanks to the overseas investment inflow, China’s capital ou

tflow pressure is expected to continue to be eased in 2019, thus reducing the restraint on its monetary policy.

Third, the yuan’s exchange rate continued to return to its normal valuation. In the long

run, the yuan’s rate reflects changes in China’s economic fundamentals, with two-way fluctuations surrounding its eq

uilibrium exchange rate. In the third quarter of 2018, the effective exchange rate of the yuan was greatly lower than the equilibrium rate. I

n the fourth quarter, the yuan’s rate rebounded slightly, indicating the effective exchange rate had started to r

eturn to its equilibrium level. Due to the still existing gap between the effective rate and equilibrium rate, there is room

for the yuan’s rate to return to its valuation, conducive to further buffering of the external exchange rate risk.

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In short, thanks to changes in the internal and extern

al environment, China’s monetary policy is expected to sail out of the “reefs” in 2019, becoming more flexible in maintaining its prudent, neutral, and marginally loose stance.

We believe that comprehensive and targeted cuts to reserve req

uirement ratios, reductions in open market rates, and increased use of targeted medium-term l

ending facility will become the main policy tools of China’s central bank in 2019. Only when extreme changes happen in the internal and external env

ironment (for example, the Chinese economy fails to stabilize in the middle of 2019 and the Fed doesn’t raise interest rates),

will the possibility of lowering the benchmark deposit and lending interest rates rise significantly.
hina will take measures to help domestic soybe

an and corn farmers, while also seeking to expand imports of certain agricultural products that are considered in s

hortage through diversified channels, according to a central government guideline released on Tuesday.

The plan, came before a new round of trade negotiations between Chinese and US officials set fo

r Thursday and Friday, shows Chinese policymakers’ determination to be le

ss dependent on US agricultural imports such as soybeans even if a deal is likely to be reached, industry analysts said.

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hina releases grand plan for the Guangdong-HoKong

China on Monday released a grand plan for the development of the Guangdong-Hong Kong-Macao Greater Bay Area, aiming to build a global economic and te

chnological powerhouse in the country’s south region that could be on par with bay areas in New York and San Francisco.

The development plan for the Greater Bay Area, which was released by the State Council, China’s cabinet, outlined China’s eff

orts to build an open community for coordinated innovation in the region, develop quality innovation and t

echnology carriers and platforms, and enhance the environment for innovation in the region.

The Greater Bay Area, which spans nine cities in South China’s Guangdong Province as well as H

ong Kong and Macao, the two special administrative regions, with a total GDP of $1.5 trillion i

n 2017, will become a new frontier for China’s fresh round of reform and opening-up, experts said.

Chen Xinxin, a research fellow at the Institute of Law of the Chinese

Academy of Social Sciences, told the Global Times on Monday that the development t

imetable for the area as shown in the guideline, an important outline document guiding the current and future co

operation and development of the Greater Bay Area, is in line with the nation’s economic and technological development.

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s not merely for the Pearl River Delta Area but also integrat

with China’s overall development plan,” said Chen.The guideline covers the period from now to 2022 in the near term and extends to 2035 in the long term.

By 2022, a first-class international bay area with urban clusters should be basically established, fe

aturing outstanding innovation ability and beautiful environments. By 2035, high-level interconnectivity in the ma

rkets in the Greater Bay Area should be realized with synergized regional development.

The grand plan calls for measures to strengthen cooperation in innovat

ion and technology, enhance the building of basic innovation capacity, improved the

in-depth integration of industries, academia and research, and deepen reform of innovation systems and m

echanisms in the region, as well as step up the protection and exploitation of intellectual property rights.

Chen said the Greater Bay Area will play a significant role in the country’s fu

rther reform and opening-up under the “one country, two systems” principle.

“The principle should be continuously upheld as it is important to maintain (each region’s own advantages),” said Chen.

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Li Rui’s controversial life reflects diversity of opinion

Li Rui, former deputy head of the Organization Department of the Communist Party of China (CPC) Central Committee, died i

n Beijing on Saturday. His death grabbed the headlines in many Western media outlets. A report by The New York Times called Li “standard-bea

rer for liberal values in China.” But how to evaluate him divided online public opinion in China.

Li lived for 101 years. His long life span contributed to his influence.

Li’s life was a bumpy ride. He experienced almost all historic events such as the Yan’

an Rectification campaign, and himself became the subject of several political movements.

Li was imprisoned once in Yan’an before the founding of the People’s Republic of China. In the

20 years after 1959, he was either held in confinement or in labor camps. The experiences were even quite unfortunate in that historical context.

Li’s career peaked when he was appointed as the deputy head of the Organization Department of the CPC Central

Committee after the reform and opening-up. His title as the secretary of Chairman Mao Zedong remains controversial.

In general, his positions had not offered him opportunities to exercise an enormous impact on China. His influence was limited until he retired.

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But things are gradually changing. The number of Chinese

The Chinese drinking culture is set for a transformation. According to a survey of 109,441 Chinese conducted by the China Youth Daily’s Social Investigation Center, 84 percent said they were not fan of the drinking culture in China.

The long tradition seems to be on the wane, reflecting a change in an important aspect of China’s material culture.

On one hand, as living standards improve, Chinese people pay more atte

ntion to their health. More people are choosing tea over liquor as their daily beverage. Instead

of sitting at the table for the night, people now prefer healthier lifestyles. On the other hand, Chinese pe

ople have realized that drinking culture may provide opportunities for the undeserving who can get what they want by

pleasing those who insist that they drink. This is not only unfair to the deserving but also undermines ethical conduct.

Nowadays, Chinese people have developed more decent drinking habits.

Those who risk their lives drinking heavily are not the so-called heroes anymore, and those who alw

ays urge others to drink may be gradually isolated by their friends. More and more Chinese pe

ople enjoy having only a few drinks and chat over the cup. Taking small sips and slowly tasting liquor seems more enjoyable.

In addition, real friendship cannot be measured by how much alcohol is consumed. Neither can bottles of liquor build relations am

ong people. Instead, they only hurt people’s feelings and health. When people are sober again, the ecstasy and promises disappear.

After all, true friends are those who care about your health, not those who urge you to drink.

Take my poor friend. After he got out of hospital, he completely forgot who forced him to drink at the t

able. When he was blind drunk and almost choked on his vomit, all he remembered was those who loyally stayed by his side.

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irms should adapt, not abandon changing China a fact. S

China’s economic slowdown is a fact. Some foreign companies are said to be considering a withdrawal from the Chinese market, while others are making the choice to stay.

Nobody can say that all foreign companies can succeed amid the nation’s economic restructuring, but it’s very lik

ely that the ones who remain calm can emerge as winners in the market of more than 1.3 billion consumers.

China’s economic slowdown is making headlines around the world with signs of weakening growth agains

t the background of trade tensions. Several Western media outlets in recent weeks have published articles suggesting Ch

ina’s slowdown has started to weigh on some of the world’s biggest businesses, spreading alarm in the market.

The sales of a number of big companies are reportedly suffering as a result of China’s economic slowd

own. Those reports have led many to believe that those companies are losing confidence ab

out the Chinese economy. Some companies have plans to withdraw from China. However, investors may be misled by those reports. Official figures show t

hat inbound foreign investment in China reached an all-time high in 2018, reflecting overseas investors’ growing confidence in the Chinese market.

China is having a hard time amid its economic restructuring. In fairness, most of the world econo

my is suffering. Still, the Chinese economy has turned in a relatively good performance with GDP growth of more than 6 percent.

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The BJP has projected Gandhi as a “Chinese propagandist.

raving about China,” BJP spokesperson Sambit Patra was quoted as saying in The Times of India.

The BJP has also questioned the “request” of the Chinese ambassador to give a ceremonial send-off to Gandhi for his Mansarovar trip. “When Rahul Gan

dhi went for Kailash Mansarovar Yatra, a letter was sent by the Chinese ambassador to the MEA (Ministry of External Affairs) that he wanted to give Rah

ul Gandhi a ceremonial send-off. This protocol is limited to heads of state or government and leader of opposition. No

w it is clear why China wanted to extend this protocol to Rahul Gandhi. Yatra was just an excuse, he had to meet Chinese ministers and discuss so

mething. The cat is out of the bag today, and the Congress needs to clarify,” Patra told Hindustan Times. The BJP didn’t stop at that. It als

o dug into Gandhi’s earlier meeting with the Chinese envoy in India during the Doklam standoff.

If the developments are any indication, the BJP is desperate to raise any issue which could work in its favor in the elections with the mood of the general

masses not looking positive towards the party. It wants to eliminate the anti-incumbency factor and divert the at

ention of the masses from more pressing issues. The main opposition has alleged the BJP failed to keep its promise of

generating 20 million jobs in a year. The opposition is also repeatedly raising the Rafale fighter jet deal to counter M

odi’s take on corruption. Now the BJP strategists feel playing the China card, to a certain extent, could help the ruling party in this matter.

But experts say such issues are not going to impact the elections. “China card will prove to be of litt

le or just no help for the BJP,” says Ajay Jha, a prominent Delhi-based journalist who is an expert in Chinese affairs.

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What apparently has shattered the confidence of the ruling

its poor performance in recent polls in three key Indian states.

One key factor that apparently sealed the fate of the BJP was prevailing anger among upper castes. So the first thing the prime

minister did was to grant 10 percent job reservation to the less well-off among the upper castes.

The BJP projected the move as a “game changer” which it claimed would win it the support of a certain section of society bu

t now finds itself on the back foot as the Congress came out with a proposal promising “minimum income guarantee” fo

r every poor villager if the party was voted to power. The idea has left the BJP leadership unnerved.

The head of the Pakistan Navy hailed the Chinese navy’s participation in the Aman 19 multinational maritime exercise during a visit to the

warship Kunlunshan on Sunday, saying that the Chinese naval presence in the Indian Ocean is vital to regional ­security.

Pakistan is holding its sixth multinational maritime naval drills, Aman 19, from Friday to Tuesday in Ka

rachi, with navies and observers from 46 countries including China, Russia and the US participating in the exercise.

The Chinese People’s Liberation Army Navy (PLA Navy), which has participated in all

previous Aman exercises, sent two warships from the Task Group 998 for the exercise.

“The PLA Navy has always been a very big participant, we are really grateful for that,” Ch

ief of the Pakistani Naval Staff Admiral Zafar Mahmood Abbasi told the Global Times during his visit.

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ina’s icebreaker Xuelong leaves research base in Antar

China’s research icebreaker Xuelong, with 126 crew members aboard on the 35th Antarc

tic research mission, on Thursday local time left the Zhongshan Station on its way back to China.

Snow Eagle 601, China’s first fixed-wing aircraft for polar flight, on Th

ursday night also departed from the Antarctic after completing all assignments.

Xuelong arrived near Zhongshan on Feb 9. It supplied the station with fuel oil, then picked up summer exped

ition team members at the Kunlun, Taishan and Zhongshan stations, as well as members of the fixed-wing aircraft project.

Sixteen members of the Kunlun team previously completed all scientific expeditions at Dome Argus (Dome A), the So

uth Pole’s highest icecap. They, together with 21 members of the Taishan team, returned to Zhongshan on Feb. 8.

The Zhongshan team completed tasks including installation of and tests for LiDAR, drilling of ice bedrock, aa

tmospheric sounding observation, surveys of birds and aerial exploration carried out by the fixed-wing aircraft.

As the summer expedition team at Zhongshan left, 19 members stay for winter expeditions.

Also known as the Snow Dragon, the icebreaker carrying a research team set sail from Shanghai on Nov 2 last year, beg

inning the country’s 35th Antarctic expedition. It is expected to arrive in Shanghai in mid-March.

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