Since the start of the flood season, major rivers across China have experienced 25 numbered flood events, the highest number since data was first recorded in 1998, making the flood prevention situation sever and complex.

Climate in China this year has deviated from the norm, with many heavy rainfall events, leading to frequent and often accelerated flooding of major rivers and waterways, the Chinese Ministry of Water Resources concluded in a summary issued on Wednesday

According to the ministry, China's major rivers and lakes can flag "numbered floods" when water levels reach a warning level or register a flood of "once in two to five years" magnitude.

On Thursday, the China Meteorological Administration told a press conference that the country will focus on four extreme weather events - rainstorms, typhoons, high temperatures and drought.

The administration predicts that in the next 10 days, the overall weather situation in China will be frequent precipitation in the north and continuous high temperature in the south.

In July, the national average temperature was 23.2 C, which was 1 C higher than the same period in previous years, making it the highest on record since 1961. A total of 59 national-level meteorological stations recorded daily maximum temperatures breaking or equaling historical records, the administration disclosed.

In terms of precipitation, the national average was 129.3 millimeters, which was 13.3 percent higher than usual for the same period, with 30 national-level meteorological stations recording precipitation exceeding historical records. 

Precipitation levels in the Huaihe River, the Liaohe River, the Yellow River, the Yangtze River, and the Haihe River basins were all above average, with the Huaihe River and the Liaohe River basins experiencing precipitation levels double that of normal levels.

August still sits within a critical period of flood control, the risk of rainstorm and flood disasters is high in Northeast China, North China, South China and Southwest China, and flood situations may occur in the middle and lower reaches of the Yellow River, the Haihe River basin and the Songliao River basin, the administration said.

It is forecast that during August, two to three typhoons are expected to make landfall in China, mainly affecting the coastal areas of South and East China, and there may be northbound typhoons affecting the northern parts of China, according to the press conference.

In response to this year's flood season, on Wednesday the national flood control and drought relief headquarters and the Ministry of Emergency Management held video conferences with 14 provinces and regions including Inner Mongolia, Jilin, and Liaoning analyzing the development trend of rainfall and flood situations, and deploying flood control and disaster relief work in key areas.

On the same day, a Level IV emergency response for flood control was activated in Inner Mongolia and Heilongjiang, a Level III emergency response for Liaoning and Jilin was maintained, also a Level IV emergency response for flood control in Hunan, Hubei, and Yunnan was maintained.

Across the country, the Chinese Ministry of Water Resources has updated flood forecasts on 45,110 occasions, issuing river flood warnings 3,683 times to flood control workers and the public, and issued 81 mountain flood disaster meteorological warnings in collaboration with the China Meteorological Administration. 

Since the start of the flood season, 4,669 large and medium-sized reservoirs nationwide have been put into operation, collectively storing and diverting 99.3 billion cubic meters of floodwater, reducing flooding in 1,450 urban areas, protecting 1.109 million acres of farmland, and avoiding the relocation of 6.53 million people. 

Central China's Hunan Province is one area that has been hit hardest during the flood season. 

As of 7 am on Thursday, heavy rainfall had affected over 1.2 million residents in Hunan, Xinhua News Agency reported.

The provincial flood control and drought relief headquarters said on Thursday that the area of damaged crops caused by Typhoon Gaemi has reached 127,000 hectares, and 96,500 people have been safely relocated.

As of Thursday noon, the roads, electricity and communications in the eight townships in Zixing most affected by the typhoon have been restored, while search and rescue efforts have made phased progress. A total of 30 people were killed and 35 people went missing during the disaster. 

As of Wednesday, the provincial aviation emergency rescue center deployed four helicopters to participate in rescue operations in Zixing city, one of the areas severely affected by the rainfall. A total of 258 flights have been completed, transporting approximately 73 tons of essential supplies and transferring 92 injured individuals and pregnant women.

Chinese experts called for strengthening the monitoring capabilities on rainfall and flood. 

With the global climate change, extreme weather events are increasing, which increases the difficulty of forecasting. Therefore, this requires us to enhance monitoring capabilities and strengthen forecasting and early-warning abilities accordingly, Ma Jun, director of the Beijing-based Institute of Public and Environmental Affairs, told the Global Times on Thursday.

Additionally, due to the increasing trend of extreme weather events brought about by climate change, we need to re-examine some of the previous planning efforts appropriately, incorporating climate change factors into consideration, Ma said. 

"We cannot solely rely on existing rules, but rather need to consider more extreme weather factors. This may involve adjusting some standards, setting some flood prevention design standards higher," Ma suggested.

China and Russia on Thursday held their eighth joint aerial strategic patrol that saw bombers of the two countries flying over the Bering Sea for the first time, also marking the farthest place Chinese bombers have reached in a strategic patrol mission, experts said.

According to an annual cooperation plan between the Chinese and Russian militaries, the two sides organized a joint aerial strategic patrol over the Bering Sea on Thursday, Senior Colonel Zhang Xiaogang, a spokesperson from China's Ministry of National Defense, confirmed with the Global Times at a regular press conference on Thursday.

This is the eighth joint aerial strategic patrol between the two militaries since 2019, which further tested and enhanced the two air forces' interoperability, and deepened the two countries' strategic mutual trust and pragmatic cooperation, Zhang Xiaogang said.

The operation does not target any third party, conforms to international law and practices, and is not related to current international and regional situations, the spokesperson said, when asked if the joint patrol was a response to the Pentagon's recently released 2024 Arctic Strategy that hyped China-Russia cooperation in the Arctic.

Zhang Xiaogang's remarks came after the North American Aerospace Defense Command (NORAD) said it detected two Russian Tu-95 and two Chinese H-6 bombers operating in the Alaska Air Defense Identification Zone on Wednesday local time, but remained in international airspace and did not enter US or Canadian sovereign airspace, according to US media reports.

This is the first time a China-Russia joint aerial strategic patrol has featured a patrol over the Bering Sea. Previous patrols have covered regions including the Sea of Japan, the East China Sea and the West Pacific.

Zhang Xuefeng, a Chinese military expert, told the Global Times on Thursday that the latest China-Russia joint aerial strategic patrol marked the first time Chinese bombers have reached an area near Alaska, and also the farthest place Chinese bombers have reached in a strategic patrol mission.

Through constant upgrades, China's H-6 bombers have achieved significant capability boosts. They can now carry long-range missiles that can launch strikes against land and maritime targets out of hostile interception range, Zhang Xuefeng said.

In a joint aerial strategic patrol in November 2022, Chinese aircraft landed in Russia and Russian aircraft landed in China.

Citing this previous experience, Zhang Xuefeng assessed that in the latest mission, the Chinese bombers likely took off from Russian territory, which is closer to North Pacific waters. He said that Chinese and Russian air force task forces have reached a high level of interoperability in terms of command, coordination, communications and logistics support.

Before the bombers' patrol, Chinese warships have cruised in the North Pacific, according to both Chinese and US official releases.

In a recent event, the US Coast Guard said that it came across four Chinese military ships in international waters in the Bering Sea north of the Amchitka Pass in the Aleutian Islands, the AP reported on July 12.

In response, Zhang Xiaogang, the Chinese Defense Ministry spokesperson, told the Global Times on Thursday that the Chinese warships recently carried out regular training activities aimed at boosting and testing combat capabilities without targeting any country.

Chinese warplanes' and warships' operations conformed to international law and practices, as they did not enter US sovereign airspace or territorial waters, another Chinese military expert, who requested anonymity, told the Global Times on Thursday.

If the US feels uncomfortable seeing a Chinese military presence on its doorstep, it should get used to it, or reflect on its own military presence on China's doorstep, which poses much greater security concerns to China, the expert said.

The China-Russia joint aerial strategic patrol closely followed a joint naval patrol that stretched from northern Pacific waters to the South China Sea and a joint naval exercise in waters off China's southern coast earlier this month, with experts highlighting the growing China-Russia military cooperation and its contribution to peace and stability through providing global strategic balance.

Italian Prime Minister Giorgia Meloni will visit China from July 27 to 31, China's Foreign Ministry announced on Thursday. Michele Geraci, former undersecretary of state at the Italian Ministry of Economic Development, told the Global Times that the visit aims to repair and strengthen economic relations with China, and it seems to be a delicate balancing act, which is also a diplomatic dance to maintain a semblance of influence in Beijing while attempting to appease allies in Washington and Brussels.

Meloni now needs to put in more effort to regain China's trust, which means she must have a clearer and more stable attitude toward China-Italy economic and trade relations. For example, she cannot say she welcomes Chinese investment in Italy while simultaneously using the government's "golden power" to veto Chinese business activity in Italy, Geraci said.

This will be Meloni's first trip to China since taking office, aiming to improve trade, Reuters reported on Thursday, citing a person involved in the planning.

Italian tire maker Pirelli, energy group ENI, defense group Leonardo, wine producers and several Italian luxury fashion groups including Dolce & Gabbana are among the companies invited to an Italy-China Business Forum to be held in Beijing on Sunday and Monday during Meloni's visit, according to Reuters. 

Some observers believe that Meloni hopes the visit will ease the tensions with China that have persisted over the past year, open up markets for Italian businesses and attract Chinese investment. However, she must also ensure that Italy does not stray too far from the "de-risking" agenda being promoted by Brussels.

This visit will mark the first visit to China by a European leader since the re-election of President of the European Commission Ursula von der Leyen on July 18, 2024. Currently, relations between the EU and China have become tense due to issues such as the imposition of tariffs on electric vehicles.

The current state of Italy-China relations is complex - cordial on the surface but strained underneath. The main strengths lie in mutual economic interests, particularly in trade and investment, Geraci noted.

Italy's approach to China is heavily influenced by US-China relations. Caught between the economic attraction of China and the strategic demands of its Western allies, Italy must navigate a complex landscape, the former Italian official said. 

Within the EU, Italy likely sees itself as a mediator, advocating for a balanced approach that safeguards European interests while avoiding unnecessary escalation. This diplomatic tightrope walk underscores Italy's attempt to maintain its sovereignty and economic well-being amid intensifying global power struggles, Geraci said. 

"However, Meloni's recent actions suggest a need for better understanding of economic dynamics in this delicate geopolitical context," he noted.

A new microgrid system has recently become officially operational in the Innovation Park of the High-tech Zone in Liyang City, Jiangsu Province. The microgrid control platform has been deployed in the newly built energy management center. Undertaken by State Grid Changzhou Electric Power Supply Company, the entire project was realized swiftly, taking only from planning and construction to launch. This microgrid will ensure energy supply within an area of 270,000 square meters and accommodates 19 enterprises.

“The microgrid project features a range of innovative demonstration scenarios, including rooftop photovoltaic, energy storage devices, charging stations, and thermal energy storage systems. Under the control platform’s instructions, the microgrid can provide stable and reliable green, low-carbon energy to enterprises, buildings, and electric vehicles within the park,” explained Chen Chang, a staff member from State Grid Changzhou Electric Power Supply Company.

Building upon various energy use scenarios, the microgrid has integrated a smart control platform system. Unlike traditional behind-the-meter energy storage systems that rely on fixed rules or hands-on experience for simple feedback control, this platform utilizes AI algorithms to forecast photovoltaic output and electricity load accurately. The microgrid can autonomously develop flexible charging and discharging strategies for the energy storage system to enhance energy utilization efficiency and maximize operational benefits. Additionally, through the established energy interconnection network, the platform can interact with the external main power grid, ensuring balanced power generation and consumption.

“Thanks to a series of measures, including photovoltaic energy consumption, charging and discharging, enterprises in the park have seen a 23 percent reduction in energy costs and a decrease of over 1,660 tons of carbon dioxide emissions,” said Zhou Cheng, director of New Energy Department of Jiangsu Liyang High-tech Zone Holding Group. 

The reconciliation talks between Fatah and Hamas were reportedly held in Beijing last weekend. This marks the second round of Palestinian internal reconciliation talks hosted by China. Dialogue between Fatah and Hamas has proven challenging. Numerous rounds of negotiations and the signing of multiple agreements have failed to yield results. While no one expects a breakthrough from one single meeting, the talks in Beijing are seen as promising due to favorable conditions.

First, the timing of this meeting is favorable. Since July 5, Israel and Hamas resumed indirect negotiations over a cease-fire, with parties involved expressing optimism that an agreement appears to be within reach. The cease-fire deal is set to be implemented in three phases, with the pivotal second phase calls for agreement on a "permanent" truce, which would include a complete Israeli withdrawal and the release of remaining hostages.

According to reports, Hamas officials have raised in recent days the notion of independent, non-partisan bodies taking over governing the Gaza Strip and West Bank following the Gaza conflict. This needs consensus between Fatah and Hamas. 

Only when Hamas commits not to attacking the new Gaza authority, can the authority survive.
Meanwhile, Fatah and Hamas are the two most dominant political factions in Palestine, and forming a non-partisan body without their participation poses an even greater challenge.

The window for achieving a cease-fire agreement is only a matter of weeks, making the urgency to address these issues imminent. 

The cease-fire agreement would signify the end of the Gaza conflict, which is intricately linked to the implementation of the two-state solution. Therefore, this round of talks is not only critical in terms of timing, but it also holds significant implications.

Second, selecting Beijing as the venue for this meeting provides significant advantages. Beijing has hosted relevant talks twice in the past three months, indicating a clear preference from both sides for the city. Beijing offers major advantages as a meeting place.

As a global power, China's hosting of the talks can swiftly bring the Palestinian issue to the forefront of international politics, enhancing the political visibility of both Fatah and Hamas. 

China has maintained a long-standing, proactive and objective stance on the Israel-Palestine conflict and internal Palestinian issues, earning trust from both Hamas and Fatah. China's support for the Palestinian peoples' just cause has been consistent without getting directly involved in internal Palestinian affairs, free from historical burdens or biases. This is an essential quality for a mediator.

In recent years, China has been actively engaged in international conflict resolution, gaining increasing experience, credibility and influence globally. China's successful mediation in the restoration of Saudi-Iran relations in March 2023 was widely praised internationally. In April 2022, China proposed the Global Security Initiative, which has received support and appreciation from more than 100 countries as well as international and regional organizations. The initiative and its core concepts have been incorporated into more than 90 bilateral and multilateral documents on exchanges and cooperation between China and other countries and international organizations.

Third, the representatives from both sides in this round of talks are of high rank, and according to reports, their stances have drawn closer to some extent.

Of course, Palestinian reconciliation is not without challenges, which is why optimism must be tempered with caution. Israel has not abandoned its goal of completely eliminating Hamas, creating significant uncertainty for the future of Hamas. On July 18, Israel's parliament passed a resolution that overwhelmingly rejected the establishment of a Palestinian state. The resolution passed with 68 votes in favor and just nine against it. This further dimmed the prospects for a two-state solution.

Hamas once said that the group would lay down its arms if an independent Palestinian state is established. The Palestinian Authority under President Mahmoud Abbas, who is also the chairman of Fatah, has appointed a new reform-minded government, but remains unwilling to relinquish authority. Yet both Hamas and Israel oppose a Fatah-led Gaza regime. Any of these issues could cause the reconciliation talks to collapse instantly. 

The Beijing talks are closely intertwined with cease-fire negotiations mediated by the US, Egypt and Qatar, influencing and complementing each other. The progress of the overall cease-fire negotiations also affects the Beijing talks. From this perspective, in the pursuit of mediating Israel-Palestine peace, Beijing and Washington are not in competition, nor are they in hostile relations. Instead, they can be viewed as being in complementary cooperation.

With the joint efforts of all parties, the China-Kyrgyzstan-Uzbekistan railway is likely to commence construction in the upcoming months, according to media reports. This project, once completed, will further promote economic and trade development in Central Asia, transform the region's economic landscape and inject more certainties to the global trade, domestic and international experts said.

The launch of this landmark project under China-proposed Belt and Road Initiative (BRI) once again confirms how the joint initiative has evolved from a Chinese proposal to an international framework, being translated from concept to action, experts said.

Construction of the China-Kyrgyzstan-Uzbekistan railway is set to commence on August 25 of this year - according to an announcement made by Kyrgyz Prime Minister Okilbek Japarov at the inauguration of a hydropower station in the Chuy region, as reported by qalampir.uz, a local media outlet.

"This railway represents the shortest route from Shanghai to Paris and is projected to handle 15 million tons of cargo annually. We have completed the feasibility studies, and the project is expected to be self-sustaining within 15-20 years. Looking ahead, in 30 years, this railway could extend to the sea, enhancing our global trade," Japarov said.

Since the signing ceremony of the trilateral government agreement for the China-Kyrgyzstan-Uzbekistan railway project in Beijing in June, this historic cooperative endeavor has garnered increasing attention.

Experts said that this railway project will facilitate Uzbekistan and Kyrgyzstan's transformation from "landlocked countries" to "land-linked countries," while serving as a more reliable and efficient transportation network, injecting more certainties into world trade.

In addition, this landmark project, upon its completion, is poised to become a model of regional cooperation under the BRI, injecting substantial momentum into the economic and social development of the three countries, Central Asia and beyond, experts said.

A reliable alternative

As an important corridor forming part of the ancient Silk Road, Central Asia's development has long been constrained by geographical conditions among other factors - despite being located in the heartland of Asia, there are no direct sea ports.

"Traditionally, their access to sea routes has been through Russia, leading to the Black Sea region... However, since the Russia-Ukraine conflict, various factors including Western sanctions have created transportation challenges for their goods and commodities,"  Zhang Hong, an associate research fellow at the Institute of Russian, Eastern European and Central Asian Studies of the Chinese Academy of Social Sciences, told the Global Times on Tuesday. He said that the growing complexity of the situation has hindered the regional countries' ability to engage with global economic entities, and further constraining the region's development.

The China-Kyrgyzstan-Uzbekistan railway begins in Kashgar, Xinjiang, and passes through Kyrgyzstan before entering Uzbekistan. Zhang said that the construction of this railway line will facilitate trade between Central Asia to China and deliver the goods from the region in a more efficient way to other parts of the world.

Additionally, the railway construction will attract more investment to Central Asia, promoting deeper involvement in regional economic integration and local economic projects, Zhang said.

"This transformation aims to shift them from being 'landlocked' countries to pivotal transportation hubs, a role that is becoming crucial for the entire region," Zhang noted.

The important role of this new railway network extends beyond a few countries to the entire region. Currently, global trade faces challenges such as geopolitical tensions including the Red Sea crisis, leading to high costs and risks impacting global shipping and freight. The new railway will provide a more diverse option for the global trade network, offering a reliable and secure alternative, Li Xin, director of the Center for Russian and Central Asian Studies at the Shanghai Institutes for International Studies, told the Global Times.

Specifically, the northern route of the China-Europe freight train service, passing through Russia and Belarus to Europe, has been impacted by the Russia-Ukraine conflict and Western sanctions against Russia and Belarus, according to Li.

Meanwhile, the southern Maritime Silk Road route through the Red Sea to the Mediterranean also faces security challenges, necessitating longer detours via the Cape of Good Hope and significantly increasing operational costs.

Given this context, Li said that establishing international transport corridors across the Caspian Sea, including Kazakhstan's Trans-Caspian International Transport Route and the China-Kyrgyzstan-Uzbekistan Railway extending toward Turkmenistan, could provide viable alternatives.

The China-Kyrgyzstan-Uzbekistan railway corridor will also connect with the Trans-Caspian Corridor, providing Uzbekistan with the shortest route to Europe, according to media reports.

Exemplary model

Central Asia has been pivotal for the BRI, particularly since the Silk Road Economic Belt, an essential component of the initiative, was first proposed in 2013. Experts said that with the construction of the China-Kyrgyzstan-Uzbekistan rail project, the BRI's emphasis on win-win cooperation and sustainable development will be further illustrated.

To Maryam Agharabi, research coordinator at China & Central Asia Studies Center, an organization based in Almaty, Kazakhstan, this transnational railway project is an important, long-awaited, and highly anticipated development from various perspectives.

"Broadly speaking, it contributes to the cooperative approach within the region, meaning that it not only helps diversify trade and transit by adding an extra route connecting Central Asian countries in both east-west and north-south directions, but it also demonstrates a commitment to the development of the region as a whole in the spirit of regional economic cooperation, not just within one or two selected countries," Agharabi said.

"It is important to understand that sustainable development should be viewed as a collective endeavor shared among neighbors, so, although Kazakhstan is not a direct party to this project, this is certainly welcomed by Kazakhstan, too," Agharabi said, noting that the launching of this project is a positive development not only for China, Kyrgyzstan, and Uzbekistan, which will see direct and immediate economic benefits, but also for the rest of the Central Asian countries and even beyond.

The railway project is an important BRI infrastructure project under the joint cooperation in a sense that the most priority projects in the Central Asia region are joint development projects in trade and logistics, industrial cooperation and energy, Aliya Mussabekova, chief expert at the Asian Studies Department at Kazakhstan Institute for Strategic Studies under the President of Kazakhstan, told the Global Times.

These projects, both on a large regional scale and of local significance, form the foundation of a self-sustaining and secure common market, according to Mussabekova. In the long term, they establish Central Asia's identity as a cohesive region, the expert said.

The China-South Asia Expo opened on Tuesday in Kunming, Southwest China's Yunnan Province, showcasing a deeper commitment to regional cooperation. Exhibitors expressed optimism for the Chinese market and praised the event for providing opportunities to expand business in the region.

Pakistan is a featured country this year, with a 360-square-meter exhibition area designed to showcase its national heritage. The exhibits include agricultural and handcrafted products. 

"I have participated in the expo five times. We mainly export handicrafts to China, which are very popular. The expo provides us an excellent opportunity to display our goods directly to Chinese customers and purchasers," Imran, a Pakistani merchant told the Global Times.

The China-Pakistan Economic Corridor has notably facilitated bilateral trade, for example, it has reduced the transit time of our products from 50 days by sea to just 15 days via land, Imran added. "In the future, I expect train lines can be built in the corridor, which could cut the transportation time more."

Beyond Pakistan, South Asian countries such as Sri Lanka, Nepal and India have also sent delegations to the expo. 

The expo has been very beneficial for Sri Lanka, especially for small and medium-sized enterprises. New companies often lack the experiences to expand internationally due to the high cost of trade fairs in other countries. The expo brings Sri Lankan companies with exhibition opportunities, Devika Mendis, a commercial research officer from the Sri Lankan delegation, told the Global Times.

China has continuously strengthened pragmatic economic and trade cooperation with the region since the proposal of the Belt and Road Initiative in 2013.

Last year, China's trade with South Asian countries doubled to nearly $200 billion compared with 2013, cementing China's role as the top trade partner for most South Asian countries and facilitating their products' access to the huge Chinese market, the Chinese Ministry of Commerce said.

Sri Lanka is keen to continue its participation and expand its delegation size in the expo. Last year, Sri Lanka had 56 exhibition booths, while this year we have expanded to 112 booths, Mendis added. "Domestic businesses are lining up to be part of this grand event." 

Indian firms also noted the importance of the expo to small and medium-sized businesses, expressing optimism about expanding their presence at the event. 

"There are many expos that help trade with China, but the expo is especially important for small and medium-sized businesses, as many of the products displayed here are from labor-intensive sectors," said Ajay Sahai, director-general and CEO of the Federation of Indian Export Organization.

The expo also attracts a growing number of Southeast Asian exhibitors, reflecting deeper integration under the Regional Comprehensive Economic Partnership and expanding bilateral trade with countries like Malaysia and Laos. 

"We hope to further promote trade between Laos and China, and highlight Lao products, particularly agricultural goods," said Thanousone Phonamat, a vice president of the Lao National Chamber of Commerce and Industry. 

This year's event coincides with the 50th anniversary of diplomatic ties between China and Malaysia, sparking keen interest among Malaysian businesses. "We are hoping for a larger delegation and more booths for next year's expo," said Fan Shu Hua, general manager of ES Event Management Sdn Bhd.

Since settling in Kunming 11 years ago, the expo has gone through seven sessions, engaging more than 18,000 domestic and international enterprises and drawing more than 4 million visitors. 

The associated cumulative foreign trade turnover has surpassed $100 billion, with more than 3,000 projects signed and established during the expos, reported the Yunnan Daily.

This marks the eighth session of the China-South Asia Expo and the 28th Kunming Import and Export Fair. Scheduled to run from Tuesday through Sunday, the event features the theme of unity and cooperative development. It boasts participation by 82 countries, regions and international organizations, with more than 2,000 exhibiting enterprises.

Foreign investors increased their holdings of Chinese bonds in June for a 10th consecutive month, and the amount hit a new high, data showed. Observers said on Sunday these figures underscore foreign capital's strong confidence in the stable growth prospects of the world's second-largest economy, and their positive feedback on steady progress in financial market opening-up.

As the third plenary session of the 20th Central Committee of the Communist Party of China (CPC) draws up a sweeping blueprint to guide China's reform and opening-up for years to come, it is expected that the conference will channel more confidence and stability into the country's financial market, adding to its allure as an investment destination as global financial volatility increases, analysts said.

As of the end of June, the value of bonds held by foreign investors in the interbank market set a new record of 4.31 trillion yuan ($592.88 billion), data released by the Shanghai Head Office of the People's Bank of China, the country's central bank, showed on Friday.

It was the 10th month in a row for foreign investors to raise their holdings, with the amount exceeding 1 trillion yuan during the past 10 months, financial news website eastmoney.com reported.

Foreign financial institutions also accelerated their entry into China's interbank bond market. As of the end of June, a total of 1,133 foreign entities had entered the market, the report showed.

Observers said that the overwhelming interest in yuan-denominated bonds among global investors mirrored their investment value, which includes minor price fluctuations and stable returns, especially as a Fed interest rate cut looms and concerns grow about the potential high volatility of US Treasury debt.

"The yields of Chinese bonds are also relatively immune to global financial market fluctuations, which is another reason for their increasing attractiveness," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Sunday.

The reform-focused third plenum was held in Beijing from July 15 to 18. The gathering reaffirmed China's unwavering commitment to reform and opening-up and drew a clear path for China's continuous high-quality development.

Chinese and foreign analysts said that the third plenum will consolidate foreign investors' confidence in the outlook for the Chinese economy, which is the underlying logic behind their expanding investment in yuan-denominated assets.

"Even though the Chinese economy is facing some challenges, China will do better compared with many developed countries in 2024. As promoted in the third plenum, China will focus on high-quality development, and deepen its supply-side structural reform to create new drivers and strengths for realizing growth," Maya Majueran, director of Belt and Road Initiative Sri Lanka, a Sri Lanka-based organization that specializes in BRI cooperation, told the Global Times over the weekend.

He stressed that with these new and positive developments, China will achieve its GDP growth goal of about 5 percent, and that will create fresh opportunities for the world, injecting confidence and impetus into the global economic recovery.

China's bond market opening-up is seen as a crucial step in China's two-way financial market opening-up. The Bond Connect program was launched in July 2017, aiming to make the Chinese mainland's interbank bond market accessible to overseas investors and international bond markets for mainland investors.

At least 821 international investors had entered the Chinese mainland bond market via the program's northbound leg as of the end of May, according to Bond Connect Co, the management entity of the program.

Chinese bonds have also been included in major bond indexes such as the Bloomberg Barclays Global Aggregate Index, JPMorgan's Government Bond Index-Emerging Markets Index and the FTSE World Government Bond Index in the past seven years, signaling a further enhancement in the maturity and international influence of China's bond market.

China equity funds have welcomed rising capital inflows for a string of five consecutive weeks, reflecting a vote of confidence in the stable recovery of the world's second-largest economy amid multiple sound macro-economic figures and expectations for measures on further comprehensively deepening reform and advancing Chinese modernization.

While key economic data are due to be published, analysts forecast the country's GDP growth rate will be 5.2 percent in the first half of the year, laying a solid foundation for the achievement of pre-set annual GDP growth target. They called for targeted fiscal and monetary policies to tackle remaining challenges across the economy.

Chinese Premier Li Qiang on Tuesday held a symposium on the economic outlook. Li called for the solid implementation of macro policies and enhancement of the effectiveness of the policies to promote the healthy development of the economy, the Xinhua News Agency reported.

According to data released by global industry information provider Emerging Portfolio Fund Research, Chinese equity funds have seen capital inflows for the fifth straight week by July 3, while the country's bond funds reported flows for eight consecutive weeks, Shanghai Securities News reported on Wednesday.

Recently, it is becoming a point of consensus among foreign financial institutions that investors' confidence in China's financial markets are storming back amid the country's improved macro-policies.

Although Chinese stocks have now dropped somewhat after a strong bounce back of 32 percent in the first five months of the year, we still maintain the view that Chinese stocks will bounce again over the upcoming months, Hu Yifan, regional chief investment officer and head of macroeconomics for Asia-Pacific at UBS Global Wealth Management, wrote in a note sent to the Global Times.

Now is a good opportunity for investors to seize China's stock market opportunities amid the country's improving market fundamentals and deepening reforms, Hu added.

Compared with developed markets, the valuations of Chinese stocks remain low, indicating further growth potential for Chinese stocks, Singapore's DBS said in investment insights for the third quarter. The bank says robust profit prospect will support the optimistic development momentum.

Notable growth of high-frequency data in various sectors indicated the potential of China's domestic demand, the resilience of foreign trade and enterprises' innovation vitality, underscoring the recovery momentum of the world's second-largest economy.

The consumer price index (CPI), a main gauge of inflation, was up 0.2 percent year-on-year in June, rising for the fifth straight month as improving consumer sentiment continued to drive domestic demand, data from the National Bureau of Statistics showed on Wednesday.

China set to publish its GDP and several other macro-economic data on July 15.

The economy experienced an overall recovery in the first half of 2024, with the economic growth rate expected to reach around 5.2 percent, laying a solid foundation for the achievement of annual GDP growth target, Wen Bin, chief economist from China Minsheng Bank, told the Global Times.

Wen said exports play a remarkable role in driving the economy. "In the second quarter, export growth rate continues to rebound, which contributes to investment and production in the manufacturing sector. However, domestic consumption remains weak at the moment, whereas infrastructure investment should strengthen," he said.

Analysts said that the upcoming third plenary session of the 20th Communist Party of China Central Committee to be held between July 15-18 in will serve as a barometer to see how policymakers press ahead with comprehensively deepening reform and further shoring up the vitality of the real economy.

On the Tuesday seminar, Premier Li emphasized the need to pursue innovation-driven development to consolidate the economic recovery momentum while giving full play to the role of enterprises and strengthening targeted policy support for enterprises to achieve breakthroughs in more core technologies in key fields.

Since the beginning of 2024, the development of new quality productive forces has been picking up speed. In the future, China should continue to boost related reforms and innovations through developing new quality productive forces in order to enhance enterprises' innovation vitality and achieve high-quality development, Chen Fengying, an economist and former director of the Institute of World Economic Studies at the China Institutes of Contemporary International Relations, told the Global Times on Wednesday.

By cultivating new technologies and new industries while upgrading traditional industries, China will continue to inject fresh vigor into global development, Chen said, forecasting that China will continue to be a major engine of the global economy this year by contributing about 30 percent to global growth.

China's foreign trade in the first half of the year has set a new high, representing a year-on-year increase of 6.1 percent to 21.17 trillion yuan ($2.9 trillion), indicating a positive momentum in the country's foreign trade as well as improvement of the national economy.

The data were released before the third plenary session of the 20th Communist Party of China Central Committee, which will be held from July 15 to 18 in Beijing. The plenum will primarily examine issues related to further comprehensively deepening reforms and advancing Chinese modernization.

According to the General Administration of Customs (GAC) on Friday, the country's foreign trade for the first time in the same period in history exceeded 21 trillion yuan. Moreover, the growth rate of the country's foreign trade accelerated quarter by quarter, as it grew 7.4 percent in the second quarter, 2.5 percentage points higher than the first quarter and 5.7 percentage points higher than the fourth quarter of last year.

Imports in January-June period totaled 9.04 trillion yuan, up 5.2 percent year-on-year and exports stood at 12.13 trillion yuan, an increase of 6.9 percent year-on-year.
In the first half of the year, ASEAN maintained China's largest trading partner, with bilateral trade value reaching 3.36 trillion yuan, an increase of 10.5 percent, accounting for 15.9 percent of China's total foreign trade. The EU was the second largest trading partner, but bilateral trade value declined 0.7 percent. The US became the third largest trading partner, with bilateral trade increasing 2.9 year-on-year.

South Korea was the country's fourth largest trading partner in the period, and total value between the two countries reached 1.13 trillion yuan, an increase of 7.6 percent. The trade deficit with South Korea rose by 14.3 fold, GAC said.

During the same period, China's foreign trade with partner countries of the Belt and Road Initiative amounted to 10.03 trillion yuan, up 7.2 percent.

In the first half of the year, Chinese private enterprises excelled in foreign trade, with import and export totaling 11.64 trillion yuan, an increase of 11.2 percent, which accounts for 55 percent of the total value of the country's foreign trade, an increase of 2.5 percentage points over the same period last year.

GAC noted that electromechanical products accounted for nearly 60 percent of the country's exports, and automatic data processing equipment and its components, integrated circuits, as well as auto exports, continued to grow.

From January to June, China's exports of electromechanical products reached 7.14 trillion yuan, an increase of 8.2 percent, accounting for 58.9 percent of the total value of exports. Among them, exports of automatic data-processing equipment and its parts and components totaled 683.77 billion yuan, representing an increase of 10.3 percent. Exports of integrated circuits rose 25.6 percent to 542.74 billion yuan, and exports of automobiles stood at 391.76 billion yuan, soaring 22.2 percent compared with the same period last year.