Thursday, September 4, 2025

Polaris of Enlightenment

Chinese wisdom as a tool of global governance: Sharing as a concept of economics

The modern China

Humanity is challenged today to define the basis for co-existence among nations on our planet. Together, the BRI, the GDI, the GSI, and the GCI constitute a suitable multi-dimensional and multi-layered vision for global governance, writes Hussein Askary, Vice-Chairman of the Belt and Road Institute in Sweden, in a guest analysis.

Published 3 February 2024
"The world is facing great challenges but at the same time great opportunities. The potential for a more just and beneficial system of global governance exists despite these challenges", writes Hussein Askary.
9 minute read

Two sentences will stay for a long time in mind from President Xi Jinping’s keynote speech at the Third Belt and Road Forum in Beijing in October 2023, which I had the great fortune of attending:

– We have learned that humankind is a community with a shared future. China can only do well when the world is doing well. When China does well, the world will get even better.

– Important guiding principles for high-quality Belt and Road cooperation have been laid down, which include the principle of ‘planning together, building together, and benefiting together’.

A few months earlier President Xi, in his speech at the 15th BRICS Summit in Johannesburg, South Africa, cited an African proverb which states:

– If you want to go fast, go alone; if you want to go far, go together.

What these quotes signify for me is a reflection of a deep Chinese philosophical tradition which we see now manifesting itself in the visions and actions of China to improve the global governance system that seems to have lost its way since it was once ratified in the UN Charter in San Francisco in 1945. It has lost its way in the fog of series of wars, economic and social crises, and misguided geopolitical theories thriving in the West since the end of the Cold War in 1990, such as the “End of history”, “Clash of civilizations”, and “Project for an American Century”.

Humankind is a community with a shared future.

– President Xi Jinping

Recently, in a presentation I gave at a panel discussion of the Tongzhou Global Development Forum in Beijing, I made reference to the China-brokered Iran-Saudi Arabia normalization of relations in March this year in the context of my discussion about the interconnectivity among the Belt and Road Initiative (BRI), Global Development Initiative (GDI), Global Security Initiative (GSI), and Global Civilization Initiative (GCI). A Chinese Peoples’ Liberation Army officer participating in the discussion exclaimed:

– You know, people are waiting for the details of the secret negotiations between China, Iran, and Saudi Arabia to be released. There are no such things. There is only one open secret which is that China is a trustworthy partner who have made the ‘golden 30 years’ of peace in East Asia possible.

I was reminded that China’s amazing development was made peacefully, and that China has become a major power in the world without shooting a single bullet against any other nation.

Eye of Nanjing Pedestrian Bridge in Jianye District, Nanjing, China. Photo: iStock/onlyyouqj

Development, security, and civilization

My understanding of the symbiosis among the three notions of development, security, and advancement of civilization became more enriched this year after attending the Third Belt and Road Forum which coincided with the culmination of the horrific events in Palestine. The world is facing great challenges but at the same time great opportunities. The potential for a more just and beneficial system of global governance exists despite these challenges.

Ten years after the launching of the Belt and Road Initiative (BRI), which in my view is the greatest global development endeavour, the world stands at a crossroads. In one direction there is geopolitical competition, zero-sum games, wars, and instability. In the other direction, there is win-win cooperation, peace, and equitable and shared economic development. 152 nations have joined the BRI until now, a global majority. Those who try to isolate and stand outside the BRI, are finding themselves an isolated minority standing in a small yard with a very high fence, or as the Chinese express it, like a frog in a well. What the BRI has achieved in the first 10 years is the creation of an inclusive platform of multilateral cooperation transcending political, social, and cultural differences.

To date, 152 countries, representing the global majority, have joined the Belt and Road Initiative (BRI).

Besides the BRI, there is also the emergence of the BRICS (Brazil, Russia, India, China, and South Africa), the BRICS Plus (Iran, Saudi Arabia, the United Arab Emirates, Egypt, Ethiopia, and Argentina), and the Shanghai Cooperation Organisation (SCO). In all these, China holds a prominent position and contributes to their vitality and growth. But humanity cannot stand in a divided world. There is need to establish a universal understanding of the three notions to bring closer the nations of East with West, North with South.

Development

There is need to redefine what development is, including the notion of “sustainable development”. I am convinced that the Chinese notion of sustainable development and the Western notion diverge on core concepts. The Chinese notion is “sustained development” using modernization and industrialization, advancement of technology, and common prosperity for all nations. The Western notion is, unfortunately, attached to the false premise of “limited natural resources”, which is the root cause of the zero-sum game thinking. This concept argues that there isn’t enough for everyone. Accordingly, if China grows, if Asia grows, if Africa grows, and if Ibero-America grows, what will happen to the West and the limited resources they need for themselves? This is a very dangerous outlook that needs to be changed. There are no limited resources. There is only limited knowledge. As president Xi put it, “instead of fighting over a small pie, lets bake a bigger pie or many pies”. Harmony between nations and the zero-sum game cannot co-exist in the same world anymore.

Aerial view of Yantian port, Shenzhen city, China. Photo: iStock/kynny

The GDI (Global Development Initiative) calls for “balanced, coordinated and inclusive growth, promoting global development, and staying committed to development as a priority”. By development President Xi meant modernization and industrialization for all, not the few. This was re-emphasized again in the BRICS Summit in Johannesburg this year, when President Xi said:

Development is an inalienable right of all countries, not a privilege reserved for a few.

– President Xi Jinping

Security

We all realize that there could be no proper development without security. But it is not the egg or the hen. Both must advance together in a symbiosis. The GSI presented in April 2022, after the outbreak of the Ukraine war, outlined a new understanding of “security” of all nations, not what some superpowers believe is their own “national security interests”. The so-called “rules-based order” should be scrapped, and the UN Charter should be brough back from the dusty shelf where it has been placed since at least 1991. The sovereignty, independence, and non-interference in internal affairs of all nations whether big or small should be respected and their security interests taken into consideration.

But security and development are indivisible twins, according to the GSI. Without economic development there could be no sustainable peace and security. The efforts to “impose” security only through the power of arms, as the U.S. and NATO have done in Afghanistan, Iraq, Libya, Syria, Somalia and now in Palestine, not only failed miserably but even worsened the security situation in the world. One of the reasons why the Israeli-Palestinian Oslo Accords failed was that economic development of the Palestinian people and its neighbours was not taken seriously. That’s why the Chinese proposal to resolve the latest Israel-Palestine conflict calls for economic development to be the most important issue besides the establishment of a Palestinian state in a two-state solution.

The sovereignty, independence, and non-interference in internal affairs of all nations whether big or small should be respected and their security interests taken into consideration.

One of the best validations of the GSI was the China-brokered normalization of relations between Saudi Arabia and Iran. However, this “security” achievement was preceded by an unprecedented upgrading of economic cooperation between China and the Arab countries on the one hand and China and Iran in 2022. I must also add here the example of the Chinese policy of eliminating the threat of terrorism and extremism in Xinjiang, by using economic and social development as an instrument, not only security measures. This should become the model of dealing with security challenges anywhere in Eurasia and Africa.

Civilization

The GCI (Global Civilization Initiative), which was launched by President Xi in March 2023, is a unique proposal for establishing the goals of global governance and relations among nations based on a “dialogue of cultures”. The GCI raised the bar of political dialogue to a completely new level to address the means through which the achievement of peaceful co-existence among nations of the world, who are so diverse in culture, history, religion, lifestyle, and political and social systems, could be reached. The GCI, as expressed by President Xi is “a choice between polarization or common prosperity; between pure materialistic pursuit or coordinated material and spiritual advancement; between draining the pond to catch the fish or creating harmony between man and nature; between zero-sum game or win-win cooperation”. Through the GCI, the notion of “a community of shared future for humanity” took a concrete meaning.

The ancient Silk Road which the BRI is an image of was in a sense a dialogue of civilizations extending over many centuries. It was a vehicle for scientific, technological, and cultural exchanges, and a means to bring new tools to the peoples along the routes between China and Europe to improve their productivity, their standards of living, culture, and creativity. That in turn enabled them to use their specific local culture and creativity to invent new knowledge and tools to give back to the other societies along the same route. This is the “win-win” concept in its most scientific and moral shape.

The Courtyard of the Confucius Shrine in Nagasaki, Japan. It is said to be the world’s only Confucian shrine built outside China by Chinese hands. Photo: iStock/SeanPavonePhoto

My research in what happened in the Islamic Renaissance era (8th to 14th centuries) gave me a clearcut account of this process of inter-civilizational communication. Specifically, using the Chinese technology of producing paper on an industrial scale from cellulose fibres is one of the brightest examples of this process of cultural transformation through exchanges. In Persia, Baghdad, Damascus, Cairo, and Fez, there was a flourishing of scientific and philosophical activity. But without paper, this knowledge would not have proliferated so fast over such an incredibly vast part of the landmass of Earth. Today, we have the opportunity to recreate and benefit from such a dialogue of civilizations.

Conclusion: Sharing is caring

Humanity is challenged today to define the basis for co-existence among nations on our planet, because that is not so well-defined. Together, the BRI, the GDI, the GSI, and the GCI constitute a suitable multi-dimensional and multi-layered vision for global governance. They deserve thorough studies and discussions by all concerned individuals and groups to find a transparent answer to the challenges the world is facing today. The idea of creating a multilateral world, as pursued by China and the Global South, is not an attempt to reinventing the wheel of global governance (which is based on the UN Charter), but to enrich it and make it adaptable to the current conditions.

The question of harmony within diversity is a major part of this attempt. In the usual Chinese poetic wisdom, the Chinese Ambassador to Sweden, Mr. Cui Aimin gave a speech to a webinar our Belt and Road Institute in Sweden organised this year, in which he explained the nature and goals of the GCI. He said:

– Respecting the diversity of civilizations is a prerequisite for exchanges and mutual learning among them. The sun has seven colors, and the world is colorful. There are more than seven billion people and various religions in the world.

He emphasized that the GCI advocates seeking wisdom and nutrition from different civilizations, learning from each other’s strengths, and making progress together.

– It emphasizes fully drawing on the rich philosophies, profound humanistic spirit and noble moral concepts in human civilization. It supports working together to solve major issues concerning the future of the world and the future of mankind, and letting exchanges and mutual learning among civilizations become the driving force for the progress of human society, Mr. Aimin added.

Respecting the diversity of civilizations is a prerequisite for exchanges and mutual learning among them.

– Mr. Cui Aimin, Chinese Ambassador to Sweden

In economics, knowledge is considered as the only non-depletable substance. The more we consume of it, the bigger it grows. In the same manner, love grows bigger within us the more we give of it to others. When I was in the centre of Guangzhou in May this year, I examined a public electric bicycle sharing station. A lady approached me and explained how the process works and used her Wechat app to demonstrate for me how it worked. She said with a big friendly smile on her face before rode away on the shared bicycle: “You know, sharing is caring!” This simple expression encapsulates for me the manner with which the otherwise unfathomable complexity of the world situation can be resolved.

 

Hussein Askary,
Vice-Chairman of the Belt and Road Institute in Sweden

Hussein Askary is an economic and strategic analyst specialized in the Belt and Road Initiative. Has a record of studies and co-authored books on the New Silk Road since 1996. He has spoken in conferences in countries in Europe, Asia, and Africa on “physical economics” and the impact of infrastructure development on productivity of societies. He has been the West Asia Coordinator for the International Schiller Institute since 2001.

TNT is truly independent!

We don’t have a billionaire owner, and our unique reader-funded model keeps us free from political or corporate influence. This means we can fearlessly report the facts and shine a light on the misdeeds of those in power.

Consider a donation to keep our independent journalism running…

Putin and Kim Jong-un attend as China displays 100 new weapons systems

The modern China

Published today 12:53
– By Editorial Staff
Approximately 12,000 soldiers reportedly participated in the parade, making it one of the largest in modern times.
5 minute read

For the first time in 66 years, the leaders of China, Russia and North Korea gathered in Beijing.

The extensive military parade marked the 80th anniversary of the end of World War II with over 100 new domestically produced weapons systems – including nuclear missiles, hypersonic weapons and unmanned vehicles.

China conducted its second-ever military parade on Wednesday to mark Victory Day – 80 years after the end of World War II. The massive display at Tiananmen Square in Beijing became a demonstration of power where Chinese President Xi Jinping received 26 world leaders, including Russian President Vladimir Putin and North Korean leader Kim Jong Un.

The parade, witnessed by 50,000 spectators and 10,000 participating soldiers from the People’s Liberation Army, Navy and Air Force, marked the first time in 66 years that the leaders of China, Russia and North Korea gathered in Beijing. The last time this occurred was in 1959, during perhaps the most tense period of the Cold War.

Dressed in a gray Mao suit, Xi Jinping spoke from the Gate of Heavenly Peace. He focused on China’s victory over “Japanese aggression” in what he called the “global anti-fascist war”, but chose not to mention the United States by name despite the country’s decisive role in the war’s final stages.

— Humanity is again faced with a choice of peace or war, dialogue or confrontation, and win-win outcomes or zero-sum games, Xi declared and continued:

— The Chinese people will stand firmly on the right side of history and on the side of human progress, adhere to the path of peaceful development, and join hands with the rest of the world to build a community with a shared future for humanity.

Photo: Kremlin/CC BY 4.0

Nuclear arsenal in focus

Al Jazeera correspondent Katrina Yu emphasized the historical significance of the speech from Beijing:

— It really is difficult to understate how much of this is a part of the national psyche, the psyche of the Communist Party that, in the previous 100 years, China was repressed, invaded and humiliated by foreign forces.

Over 100 types of domestically produced weapons rolled along Chang’an Avenue. Particular attention was given to the new nuclear-capable missiles. For the first time, submarine-based JL-3 missiles were also displayed, whose extended range theoretically allows the entire US mainland to be reached from the South China Sea without submarines needing to advance into the Pacific Ocean.

The new intercontinental ballistic missile DF-61 also made its debut. It is estimated to be over 20 meters long with a range exceeding 12,000 kilometers. Additionally, the DF-5C was presented, which may have a range over 20,000 kilometers, carry ten nuclear warheads and reach speeds over Mach 10.

The hypersonic missile YJ-21, called the “carrier killer”, was also presented. The weapon is said to be able to strike aircraft carriers at Mach 10 – ten times the speed of sound – at a distance of 2,000 kilometers.

Trump’s sarcastic reaction

US President Donald Trump reacted to the parade with a sarcastic post on Truth Social:

“The big question to be answered is whether or not President Xi of China will mention the massive amount of support and ‘blood’ that The United States of America gave to China in order to help it to secure its FREEDOM from a very unfriendly foreign invader”, he wrote and continued:

“Many Americans died in China’s quest for Victory and Glory… May President Xi and the wonderful people of China have a great and lasting day of celebration. Please give my warmest regards to Vladimir Putin, and Kim Jong Un, as you conspire against The United States of America”.

Photo: screenshot/Trump/Truth Social

The Kremlin later commented on Trump’s statement and briefly explained that “no one even had this in their thoughts”.

New warfare technology presented

During the parade, China showcased its investment in modern warfare technology. Unmanned surface vessels (USV), underwater drones and unmanned aerial vehicles were presented alongside the new LY-1 laser system for shooting down drones and missiles. According to China, the new HQ-29 air defense system can defend against hypersonic missiles – a claim that has yet to be verified.

“For Xi, the point is to reinforce the impression that the People’s Republic of China has arrived as a great power under his leadership. Another is the array of leaders at the parade, which suggests that the PRC cannot be isolated, and is unafraid of pressure and bullying, particularly from the United States”, comments Ian Chong, political scientist at the National University of Singapore.

Above the parade, the air force conducted flyovers with helicopters carrying banners with messages such as “Justice will prevail”, “Peace will prevail” and “The people will win”.

US deploys missile systems

China declared that all of the more than 100 weapon types displayed were domestically produced. Despite the Chinese economy slowing down, the country’s defense spending has increased by more than 7 percent for four consecutive years and now amounts to approximately 4.2 times Japan’s defense budget. The military balance in the region has thus shifted markedly and China is gaining increasingly greater military influence.

Unmanned watercraft on display. Photo: Xinhua

Parallel to this development, the US and Japan are conducting extensive military exercises together. The US Army will for the first time deploy its medium-range missile system Typhon in Japan during the Resolute Dragon 25 exercise taking place September 11-25. Typhon can launch both Tomahawk and SM-6 missiles from land.

In July, the US placed two new weapons systems at its base in Okinawa: the MADIS air defense system and the NMESIS robot system that can combat ships. Both systems will also be used on Ishigaki Island during the Japanese-American exercise and military activities in the region are expected to intensify in coming years.

Modi abstained

Military parades on Victory Day are a relatively new phenomenon under Xi Jinping’s era – the first was held in 2015 to mark the 70th anniversary, and this year’s parade was thus only the second of its kind.

Despite friendly meetings with Xi Jinping and Putin during the SCO summit, Indian Prime Minister Narendra Modi chose to leave China before the military parade.

According to analysts, this was partly to avoid offending Japan, but also to signal that New Delhi certainly has strategic alternatives to the US but simultaneously remains concerned about maintaining its Western partnerships and cooperation.

“Remembering history to build a brighter future”

The modern China

All peace-loving peoples share a responsibility to defend the postwar international order and build a community with a shared future for humanity, writes China's Ambassador to Sweden, Cui Aimin.

Published 2 September 2025
5 minute read
This is an opinion piece. The author is responsible for the views expressed in the article.

This year marks the 80th anniversary of the victory of the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War. Eighty years ago, the forces of justice around the world united in courageous battles against their common foes, defeated the overbearing fascist powers, and won the great victory recorded in history. Eighty years later today, the international landscape is fraught with turbulence and transformation, global challenges keep emerging, and the world is standing at a crossroads where choices must be made. We must look back on history to illuminate the present and look toward the future, and draw wisdom and strength from the hard lessons of the Second World War and from the great victory of the World Anti-Fascist War. We must build on past achievements, refute false narratives to set the record straight, cherish peace, pursue common development, and work together to build a better future for humanity.

We should firmly uphold a correct historical perspective on WWII and protect the historical truth. History may fade with time, but historical memory must never be erased. The Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War represent the decisive battle between justice and evil, light and darkness, and the forces for progress and the reactionary. Japanese militarists burned, killed, and plundered on Chinese soil, committed the horrific Nanjing Massacre, waged appalling biological and chemical warfare, and conducted “human experimentation.” These heinous atrocities were a brutal trampling on life and human rights, and a grave challenge to human civilization. Under the banner of the Chinese united front against Japanese aggression, which was advocated and established by the Communist Party of China, the Chinese people launched a relentless struggle and held ground in the principal theater in the East of the World Anti-Fascist War after making immense sacrifices of over 35 million military and civilian casualties and economic losses amounting to hundreds of billions of U.S. dollars.

They defeated the brutal Japanese militarists, and carved out an immortal epic of heroic resistance and ultimate victory against Japanese aggression. Eighty years after the victory of the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War, there are still a few people who ignore the clear historical facts that countless innocent lives were lost during the wars, and repeatedly attempt to deny or glorify the history of aggression, arousing strong condemnation among all peace-loving peoples of the world, including the Chinese people. History cannot be rewritten, and facts cannot be denied. Any attempt to distort the historical truth of WWII, to whitewash the history of aggression and crimes, to overturn the verdict on militarism, or to turn back the wheel of history will never be accepted by the Chinese people, nor by the people across the world.

We should resolutely uphold the postwar international order and jointly meet the challenges of the times. History is the best textbook and the best remedy. The history of WWII is not only a record of the past, but also has a profound impact on contemporary international relations and on the postwar international order. The U.N.-centered international system is the embodiment of the victorious outcome of WWII. It has underpinned global stability and prosperity, ensured overall peace, and propelled the progress of human civilization. At present, the world faces various challenges. Unilateralism and power politics are severely impacting the U.N. and the multilateral system.

Certain countries are aggressively putting their own interests first, practicing power politics, bullying others, and attempting to replace multilateralism with unilateralism and to substitute the postwar international order with so-called rules of their own making. The painful lessons of WWII remain vivid. Hegemonism and the law of the jungle, where might makes right, must never be allowed to return. All peace-loving people of the world must remember the history written with blood and sacrifice, firmly defend the victorious outcome of WWII, uphold true multilateralism, defend the authority and sanctity of the U.N., uphold the vision of global governance featuring extensive consultation and joint contribution for shared benefit, jointly oppose hegemonism, power politics and bullying, promote greater democracy in international relations, and defend international fairness and justice.

We should build a community with a shared future for humanity and create a brighter future. History cannot be changed, but the future can be shaped. Facing the important question of “what kind of world we need and how to build such a world”, President Xi Jinping has put forward the vision of building a community with a shared future for humanity as well as the Global Development Initiative, the Global Security Initiative, the Global Civilization Initiative, and the Global Governance Initiative. They provide China’s wisdom and solutions from multiple dimensions for meeting global changes and addressing the challenges confronting humanity, and respond to the universal aspiration of all peoples for peace, development and cooperation. They set clearer goals and chart a brighter course for humanity’s future, demonstrate China’s sense of responsibility as a major country through concrete actions, and are widely recognized and supported by the international community.

No matter how the international landscape evolves, China will stay committed to the path of peaceful development and the mutually beneficial strategy of opening up, and will remain a builder of world peace, a contributor to global development, a defender of international order and a provider of public goods. China will continue to promote an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization, and work with other countries to build an open, inclusive, clean and beautiful world of lasting peace, universal security, and shared prosperity. In advancing the great cause of building a community with a shared future for humanity, countries must draw lessons from history and stand together in solidarity. We need to replace confrontation with cooperation, prevent lose-lose situations through win-win solutions, actively promote friendly cooperation, firmly resist the Cold-War mentality and zero-sum games, and strive to advance world peace and security and the common progress of humanity.

The smoke of WWII has long cleared, but the warning bells of history will always ring. We must follow the logic of history and keep pace with the trend of the times. China will walk hand in hand with countries around the world to uphold what is right, safeguard global stability, deepen win-win cooperation, and promote the building of a community with a shared future for humanity, thereby passing on the torch of peace and development from generation to generation.

Cui Aimin,
Chinese Ambassador to Sweden

China introduces national child allowances to reverse demographic decline

The modern China

Published 29 July 2025
– By Editorial Staff
Many local Chinese authorities, such as Hohhot, the capital of Inner Mongolia, have already introduced their own child allowances to encourage childbearing.
3 minute read

China is implementing its largest-ever initiative to increase the country’s declining birth rate by offering all parents national child allowances. Each child under three years old entitles parents to approximately €500 annually in state support.

The Chinese government presented a comprehensive reform on Monday where parents will annually receive about $500 per child under three years old, equivalent to approximately €500. The decision comes as a direct response to the country’s serious demographic crisis where the population has declined for three consecutive years, reports AFP according to France 24.

According to UN population projections, China risks seeing its population drop from today’s 1.4 billion inhabitants to 800 million by 2100. Last year, only 9.54 million children were born in the country – half as many as in 2016, the year when the controversial one-child policy was abolished after more than three decades.

“This is a major nationwide policy aimed at improving public wellbeing”, reported the state television channel CCTV. The support applies retroactively from January 1 this year and is based on a decision from the ruling Communist Party and the State Council.

Parents welcome initiative but want more

In Beijing, parents have received the news positively, but many believe significantly more is needed for them to consider having more children.

For young couples who just got married and already have a baby, it might actually encourage them to consider having a second child, says Wang Xue, who is mother to a nine-year-old son.

The subsidy does help ease their burdens… and also offers some psychological comfort, Wang continues.

The 36-year-old mother emphasizes, however, that the new measures are not enough to convince her to have another child.

Having one child is manageable, but if I had two, I might feel a bit of financial pressure, she says.

Zhang Wei, a 34-year-old father of a daughter and a son, calls the new allowances “a good start” as the costs of raising children continue to rise.

Compared to our generation, the costs have definitely increased exponentially, he notes.

Analysts: Right direction but insufficient

Economic experts believe the allowances are a step in the right direction but warn that the measures alone will not reverse population decline or stimulate domestic consumption.

It is encouraging that the government finally moved to use fiscal subsidies to boost fertility, says Zhiwei Zhang, CEO and chief economist at Pinpoint Asset Management.

Zichun Huang, China economist at Capital Economics, describes the policy as a “major milestone” regarding direct payments to households and believes it could lay the foundation for more tax transfers in the future. He notes, however, that the amounts are too small to have “any short-term impact on birth rates or consumption.”

Local initiatives already in place

Many local authorities have already introduced their own child allowances to encourage childbearing. In March, Hohhot, the capital of Inner Mongolia, began offering residents up to 100,000 yuan (€12,000) per newborn child for couples with three or more children. First and second children entitle parents to 10,000 and 50,000 yuan in allowances respectively.

In Shenyang, in northeastern Liaoning province, families who have a third child receive 500 yuan per month until the child turns three. More than 20 provincial authorities now offer various forms of child allowances according to official statistics.

Prime Minister Li Qiang promised to provide national child allowances during the government’s annual work report in March.

Aging population creates concern

China’s shrinking population is also aging rapidly, raising concerns about the country’s future pension system. In 2024, there were nearly 310 million inhabitants who were 60 years or older.

The country also lost its position as the world’s most populous nation to India in 2023, after the population decreased by 1.39 million last year. Low marriage rates and young couples’ concerns about high child-rearing costs and career impact contribute to the continued decline in the number of births.

China’s economy grows faster than expected despite trade war

The modern China

Published 16 July 2025
– By Editorial Staff
The Bund's historic waterfront promenade in Shanghai — once the heart of international trade and finance in Asia — still bears witness today to the city's unique role as China's open port to the world and center for global business exchange along the bustling waters of the Huangpu River.
2 minute read

The world’s second-largest economy grew by 5.2 percent in the second quarter and is on track to meet this year’s growth target. Exports and investments are driving growth while domestic demand remains weak.

China’s economy grew by 5.2 percent in the second quarter compared to the same period last year, which was slightly better than the 5.1 percent that economists had predicted. The growth means the country is on track to meet its full-year target of around 5 percent, despite ongoing trade tensions with the United States, reports Financial Times.

Exports sustain growth

The results show how China has managed to keep its economy on track through strong exports and investments, even though demand in the domestic market is weak. Industrial production increased by 6.8 percent in June, significantly more than analysts’ forecast of 5.7 percent.

Manufacturing and high-tech industries are leading industrial growth, with standout gains in, for example, robotics, new energy vehicles and equipment, says Yuhan Zhang, chief economist at The Conference Board’s China Center.

Retail sales, however, grew only 4.8 percent in June, which was lower than expected and a decline from the previous month’s 6.5 percent.

Challenges ahead

Economists warn that the second half of the year could be more challenging. Shuang Ding, chief economist for China at Standard Chartered, points out that first-half growth has benefited from companies rushing to export ahead of potential US tariffs.

Higher tariffs will take a toll on China’s exports, says Ding.

The real estate sector continues to drag down growth, with new housing prices falling 3.7 percent compared to the previous year. Economists are also concerned that overproduction combined with weak demand is driving deflationary pressure.

China is likely to need more policy stimulus as well as structural reform measures in the second half of 2025 to bolster the economy’s performance and make growth more balanced, says Eswar Prasad, economics professor at Cornell University.

Our independent journalism needs your support!
We appreciate all of your donations to keep us alive and running.

Our independent journalism needs your support!
Consider a donation.

You can donate any amount of your choosing, one-time payment or even monthly.
We appreciate all of your donations to keep us alive and running.

Dont miss another article!

Sign up for our newsletter today!

Take part of uncensored news – free from industry interests and political correctness from the Polaris of Enlightenment – every week.