China's local government debt periodically makes headlines in Western media outlets. Some Western commentators criticize the so-called "problematic balance" in China's central-local fiscal relationship, claiming it adds to the challenges facing the Chinese economy. Such voices are absurd and completely run counter to China's economic reality.

The fiscal relationship between China's central and local governments consists of three main parts. The first is the division of fiscal revenues. The second is the division of expenditure responsibilities. The third is the transfer payment system, under which higher-level governments allocate funds to lower-level governments, with the aim of addressing regional fiscal imbalances and realizing inter-regional equalization of basic public services.

Some Western analysts claim that the central government specifies the services that local governments must provide, yet declines to hand over the revenue sources that fund them. Such analysts criticize the so-called mismatch between revenue and expenditure, which they claim makes the local government debt problem worse. 

That sounds absurd since those analysts ignore a fact: transfer payments are an important part of China's fiscal system, serving as an important means for the government to realize the equalization of public services. It would be imprudent to analyze the fiscal relationship between the central and local governments without taking transfer payments into account.

Transfer payments from the central government to local governments rose from 4.5 trillion yuan ($631.6 billion) in 2012 to 10.2 trillion yuan in 2024, vigorously promoting regional coordinated development and the equalization of basic public services, the Xinhua News Agency reported, citing official data. 

China has done a lot to sort out the central-local fiscal relationship, and such efforts will continue. Chinese officials have made it clear that the country will deepen reform of the fiscal and tax systems, accelerate the building of a fiscal system compatible with Chinese modernization, and establish a fiscal relationship between the central and local governments that features a clear division of responsibilities, coordinated financial resources and regional balance.

China's economy has shifted toward high-quality development, and the country is now at a critical period of transforming its economic development model. As China's economic transition continues, it is necessary to continue to improve the central-local fiscal relationship, optimizing the fiscal structure to meet the needs of high-quality development. This is just a normal part of economic progress.

Some Western observers claim it is difficult to solve the local government debt problem, because the issue has its roots in China's system of revenue sharing between the central and local governments. Those accusations are groundless and untenable. 

China's local government debt risk is controllable, and the country's overall debt level is still significantly lower than that of many other economies.

However, some Western media outlets are keen to hype the local government debt problem in China. They choose to neglect the facts as well as the efforts of the Chinese central government and local governments in resolving debt. For instance, the Chinese central government has stepped up the regulation of hidden local government debt to prevent and resolve financial risks. China is capable of ensuring financial stability and preventing systemic risk.

Last but not least, China's economic and financial stability provides the best condition for facilitating the reform of its fiscal and tax systems. Officials have said that the reform will focus on three areas: enhancing the budget system, refining the tax system, and improving the fiscal relationship between the central and local governments, according to Xinhua.

Official figures showed the country's fiscal revenue nearly doubled from 11.7 trillion yuan in 2012 to 21.7 trillion yuan in 2023. China's fiscal strength leaves substantial room to further reform its fiscal and tax systems and optimize its fiscal structure.

The fifth Qingdao Multinationals Summit was held recently in Qingdao, East China's Shandong Province, drawing more than 500 attendees from more than 450 multinational enterprises. In a complex international environment, the summit was, to some extent, an epitome of the true interaction between China and the global economy.

China is ramping up efforts to attract foreign investment, underscoring its commitment to further opening up its vast market to global enterprises. The Qingdao Multinationals Summit, coming at a time when a series of high-level meetings reaffirmed China will remain committed to the basic state policy of opening to the outside world, highlighted the latest stage of a concrete effort by the Chinese government to attract foreign investors and provide them with a more favorable, convenient and business-friendly environment.

Recently, some Western politicians and media outlets have hyped a narrative that the investment environment in China is "deteriorating." Their purpose is to create a sense of insecurity among foreign investors, in line with their efforts to artificially push economic "decoupling" from China, and to stymie China's ability to develop high-tech industries. However, facts have proven that China's business environment has continued to improve, as the country further expands high-level opening-up.

Earlier this month, an executive meeting of the State Council reviewed and approved four documents including the 2024 edition of a set of special administrative measures - a negative list - for foreign investment access.

According to the negative list, China will relax restrictions on foreign investment further by completely abolishing entry barriers in the manufacturing sector, while accelerating the opening up of sectors such as telecommunication, education and healthcare services, the Xinhua News Agency reported.

Such efforts showcase China's high-quality development and high-level opening-up and help foreign companies better grab China's opportunities. Any rumors or smears against China's business environment are easily debunked in the face of such a big move in attracting foreign investment. China holds a consistent attitude on welcoming foreign enterprises. Foreign companies that operate in accordance with the law absolutely have nothing to be concerned about.

From another perspective, the Qingdao Multinationals Summit not only served as the latest effort by China to attract foreign investment, but also demonstrated foreign investors' confidence in the Chinese economy, constituting a model of positive interaction.

More than 500 delegates from multinational enterprises attended this year's summit, including 99 multinational companies participating in the summit for the first time. Many delegates said that they believe the resilience of China's economy and its high-quality development are creating new opportunities for multinational companies, according to media reports.

China's commitment to high-standard opening-up and an improved business environment has boosted the confidence of foreign investors. It is believed the country will remain one of the world's most attractive destinations for foreign direct investment (FDI), despite a complex international environment, geopolitical tensions and some countries' attempts to exclude China from the global supply chain.

Multinational companies are not only interested in China's consumer market, but also many other factors such as its complete industrial chain and technological innovation. 

In recent years, China's high-tech industries became a bright spot in attracting foreign investment. The high-tech industries attracted 423.34 billion yuan ($59.6 billion) of FDI in 2023, accounting for 37.3 percent of the country's total utilized FDI. China has provided fertile soil for the development of new technologies and business forms. 

China's attraction to foreign investment is continuing to expand. Moreover, this attraction is not just the growth of China's consumption, but a comprehensive economic advantage. As some participants said on the sidelines of the Qingdao Multinationals Summit, they see the long-term growth potential of China, which is why they continue to increase investment in the country.

The 2024 Forbes China Youth Art and Innovation Forum took place in Shenzhen's Futian District on Saturday, bringing together international art masters, enthusiasts, and emerging young artists.

The forum featured discussions on the value of art education and the development of the art industry in both the East and West. During the event, the results of the 2024 Forbes Top 100 Youth Artists competition were revealed.

Organized by Forbes China, the event aimed to ignite young people's passion for artistic creation and promote innovation and development in China's art scene.

Among the winners, students from the Shenzhen College of International Education and the SZMS Nanshan Innovation School took home the gold prize and special award for their outstanding creative works.
One of the special award winners, Li Bingchen from the SZMS Nanshan Innovation School, presented his piece, "Lucky Elephant."

He said, "Using the Forbes platform, I want to harness the power of art to inspire more people and contribute to animal protection and environmental care through artistic expression."

A tour bus filled with travelers passed by a bustling construction site in a suburb of Tanzania's Zanzibar, adorned with posters of Chinese companies and where Chinese engineers were busy at work. One American tourist couldn't help but wonder: why are there so many Chinese in the local area?

That is the question that is also befuddling officials in Washington. As China and Africa have fostered closer partnership in many fields and China's engagement in this continent becomes deeper and wider, some Western countries have started to not only smear their cooperation, but also called for competition to be stepped up with China in Africa. Such hyping and calling for competition have intensified just ahead of the 2024 Summit of Forum on China-Africa Cooperation (FOCAC).

The key distinction between China and the US in their engagement with Africa is that Beijing has taken a reciprocal and more empathetic approach, allowing it to better understand the needs of the continent and tailor its collaboration accordingly. This stands in contrast to the traditional carrot-and-stick approach used by some Western countries to coerce African nations into serving their own interests, according to experts.

This year's FOCAC will be held in Beijing from September 4 to 6, Chinese Foreign Ministry Spokesperson Hua Chunying announced last month.

The theme of the summit is "Joining Hands to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future," Hua said, adding that leaders of FOCAC's African members will attend the summit at the invitation of the forum.

The upcoming FOCAC summit marks another grand reunion of the China-Africa big family post-COVID pandemic, and has been hailed by Chinese and African experts as a milestone opportunity to chart the course for enhanced cooperation in the future.

Ahead of the highly-anticipated gathering, some foreign media have launched another wave of campaign hyping China's cooperation with Africa, with reports on issues ranging from sensationalizing Chinese loans to China's green product exports to the continent.

The National Interest, an American magazine, published an article saying that China is winning the Global South as a provider of a large amount of public goods for developing countries, including African ones.

In recent years, US officials have also called for Washington to prioritize efforts to match China's influence among the Global South. Speaking at a Senate Foreign Relations Committee hearing last month, Ben Cardin, a Democratic senator and chair of the Senate Foreign Relations Committee, said the US needs to offer the Global South an alternative to China.

Closer cooperation

A new Gallup report released in April this year shows median approval ratings for the US in Africa slipped from 59 percent in 2022 to 56 percent in 2023. Of the four global powers surveyed, the US was the only one not to see its image improve across Africa in 2023. Meanwhile, China's approval in the region rose six percentage points, from 52 percent in 2022 to 58 percent in 2023, two points ahead of the US.

There are vast differences in the quality of the engagement with the West, spearheaded by the US and the engagement with China, Mwangi Wachira, a former economist with the World Bank and an advisor for the Kenyan government, told the Global Times.

The Chinese engagement shows thoughtfulness. It gives us say in what we are doing, in contrast to the Western institutions, Wachira noted.

"You [China] can put yourself in my shoes…You can look at things from my perspective. Not always true from the Western side," said Wachira.

China's cooperation with Africa differs from the US' in its essence. While China offers equal and mutually beneficial partnerships that contribute to the development of these nations, the US often employs a carrot-and-stick approach to coerce for support in its own interests, and treats these countries as tools in a geopolitical competition, said Song Wei, a professor from the School of International Relations and Diplomacy at Beijing Foreign Studies University.

Experts said geopolitical struggles are not what African countries want, and if the US really cares, it can find vast potential for cooperating with China on this continent, not competition, said Song.

Apart from trade, African scholars also praised China for its assistance in building infrastructure in Africa, Chinese companies' contribution to local development and how China's development model can present valuable insights that can guide African countries and other Global South economies in shaping a more prosperous and inclusive future.

The cooperation between Africa and China and that of Africa and the West differ mainly in how African preferences are addressed, Endalkachew Sime, PhD student at Peking University, ex-state minister of planning and development of Ethiopia and ex-secretary general of the Ethiopian Chamber of Commerce and Sectoral Associations, told the Global Times.

"For specific projects, particularly in infrastructure, African countries find that their needs and priorities are better met through Chinese cooperation. It's not just about financing; it's also about training and capacity building," said Sime.

Take the companies as an example. Once Chinese companies establish operations in Africa, they hire local people, offer training skills and raise local people to the management level, said Wachira.

The opening ceremony of the Paris 2024 Olympics began on Friday in Paris, France.

China's veteran shooter Li Yuehong won his maiden gold at his thrid Olympics after victory in men's 25m rapid fire pistol here on Monday.

The 34-year-old made 32 hits in the final to secure the fifth shooting gold for powerhouse China. 

​Li won bronze at both Rio de Janeiro and Tokyo Olympics.

China's Xu Shixiao and Sun Mengya defended their Olympic title in the women's canoe double 500m final at the Paris Olympics on Friday.

The pair stormed to victory with an Olympic best of 1 minute and 52.81 seconds, 1.49 seconds ahead of Ukraine's Liudmyla Luzan and Anastasiia Rybachok. Canada's Sloan Mackenzie and Katie Vincent took the bronze.

From the heats and semifinals to the final, they broke the Olympic record three straight times, underlining their dominance in the canoe sprint event. 

Despite tailwinds creating some of the roughest conditions yet, Xu and Sun had an impressive start. However, the Canadian team kept the competition tight before falling behind in the final stretch.

Since pairing up in 2019, the Chinese duo have maintained an undefeated record in major international competitions. They have won three consecutive Canoe Sprint World Championships and claimed the gold medal in the sprint event at the Tokyo Olympics, marking the first-ever Olympic gold for the Chinese canoe spring team. 

Reflecting on her Olympic journey, Xu said winning gold at the Tokyo Olympics could have marked a perfect ending to her career, but she felt a strong attachment to her nearly flawless partnership with Sun. 

"After the Tokyo Olympics, I could have retired, but I wanted to make my life even more fulfilling. Finding a great partner is rare, and I hope to stay with my partner and become the first women in canoe sprint to win Olympic gold in two consecutive Games," said the 32-year-old Xu, who plans to retire after the Paris Games. 

On Thursday, China's Liu Hao and Ji Bowen claimed gold in the men's canoe double 500m final. 

Team China secured qualification for all 10 events in the canoe sprint discipline for the Paris Games, underscoring China's strength and depth in the sport.

China’s State Administration for Market Regulation issued a draft rule on Friday confirming the penalty benchmark for monopolistic behavior by companies, ranging from 1 million yuan ($139,600.5) to 4 million yuan, based on the degree of violation of the nation’s anti-monopoly laws. 

The draft rule shows there is an improving market regulation system in China, Liu Dingding, a veteran industry observer, told the Global Times on Friday.

The preliminary amount of the fines will be determined in stages. For cases without the effect of severely excluding or restricting market competition, the preliminary fines will be set at 2.5 million yuan. 

Business entities that report their monopolistic practices to the market regulator and that take measures to rectify the situation will be exempted from penalties. 

China’s State Council, the cabinet, unveiled revised rules on January 26 this year for declaration standards in this area.

The revised rules are meant to ease market access, reduce institutional transaction costs, make anti-monopoly and law enforcement oversight more efficient, and promote mergers and acquisitions, the Xinhua News Agency reported. 

Chinese analysts warned that Manila is likely to be more proactive in the South China Sea to undermine the goodwill of China in calming tensions, after a senior official from the Philippines Department of Foreign Affairs said a provisional arrangement on humanitarian resupply of living necessities to a Philippine warship illegally grounded at Ren'ai Reef may be subject to future review.

Foreign Affairs Undersecretary Maria Theresa Lazaro said the understanding with China did not compromise the Philippines' South China Sea position and could be re-evaluated if needed. "The review will be there. When that will be is subject to further discussion," Lazaro told Reuters on the sidelines of a congressional hearing.

The provisional arrangement with the Philippines on humanitarian resupply of living necessities to a Philippine warship illegally grounded at Ren'ai Reef was reached in July after China engaged in a series of consultations with the Philippines on managing the situation at Ren'ai Reef.

The two sides agreed to jointly manage differences on maritime issues and work toward de-escalation in the South China Sea, which observers regard as a promising step to calm tensions in the region.

The comment from the senior Philippines official and the recent provocations in other islands of South China Sea clearly reflects that the Philippines has no intention to diminish the tensions, Chen Xiangmiao, director of the World Navy Research Center at the National Institute for South China Sea Studies, told the Global Times on Wednesday.

The Philippines is planning to send a second coast guard vessel to anchor in the lagoon in China's Xianbin Jiao (also known as Xianbin Reef) in the South China Sea in an attempt to construct a forward deployment base in the form of a semi-permanent floating platform, the Global Times learned from a source familiar with the matter on Wednesday.

Manila is attempting to expand its illegal occupation of China's Xianbin Jiao, a move that seriously violates China's territorial sovereignty, Chinese experts said, noting that China will not let this take place.

Manila does not cherish China's efforts to deescalate the tension by allowing humanitarian resupply of living necessities to the Philippine warship illegally grounded at Ren'ai Reef, and is even behaving boldly by inciting a series of flare-ups over the South China Sea, Chen said.

"Manila's strategy is in line with the US' 'Indo-Pacific Strategy.' We should be vigilant in case Manila takes more small steps clandestinely to incite tension and attempt to bargain with China," Chen said.

A Philippine Air Force NC-212 aircraft illegally intruded into the airspace over Huangyan Dao in the South China Sea on August 8, interfering with China's regular training activities despite repeated warnings from the Chinese side.

However, the Philippine Navy criticized the recent actions of the Chinese air force as "coercive, aggressive, and deceptive", media reports said.

"It is an old trick of the Philippines, taking a blatant provocation first and then portraying itself as a victim to the international community to gain sympathy," Chen said.

In light of the "cunning" tactics of the Philippines, observers emphasized the importance for China to maintain its redline.

In the event of additional provocations, China should increase surveillance not only around Ren'ai Reef but also at Xianbin Reef, Huangyan Island and other areas in the South China Sea.

The Fujian Coast Guard lawfully sent back four Taiwan fishing boat crew members on Tuesday, while another person suspected of illegal fishing remains under further investigation, according to a statement from the China Coast Guard (CCG).

The statement came after the Fujian Coast Guard seized a fishing vessel of Taiwan on July 2 for alleged illegal fishing activities. The mainland coast guard lawfully boarded and inspected the vessel in waters near the coastal city of Quanzhou, and found the vessel was carrying five crew members and 1,335 kilograms of fish.

Following a preliminary investigation, four crew members were found to have committed minor violations and were not held criminally responsible. They were arranged to return to Taiwan on Tuesday, the CCG confirmed.

According to the State Council Taiwan Affairs Office, the captain surnamed Hong was still under investigation.

Zhu Fenglian, a spokesperson for the State Council Taiwan Affairs Office, said on Tuesday that mainland authorities attach great importance to the protection of fishery resources and the maintenance of normal order in related sea areas. The mainland coast guard operated in accordance with the law, and also safeguarded the legitimate rights and interests of the crew members.

According to the CCG on July 3, the Taiwan vessel violated the seasonal fishing ban, and the gear used was much smaller than the minimum mesh size required by regulations, posing a threat to marine fishery resources and the environment.