The refusal by the US to recognize Vietnam as a market economy appears to be both an economic decision and a political one, influenced by its domestic economic conditions and its strategy to counter China. Washington's increasing trend of politicizing its trade policy has become a source of growing uncertainty in the global economy.

The US Commerce Department announced on Friday its determination that Vietnam will continue to be classified as a non-market economy country for purposes of calculating US antidumping duties on imports from Vietnam, Reuters reported.

This decision brings uncertainty to Vietnam's exports to the US and sends a worrying signal, meaning that many of Vietnam's products may face the challenges of high import tariffs and anti-dumping measures. Vietnam's exports to the US have been increasing significantly. According to figures from Vietnam customs, in the first half of this year, Vietnam's exports to the US reached $55.1 billion, up 24 percent year-on-year and accounting for 30 percent of Vietnam's total exports.

The decision also contrasts sharply with recent efforts by the US government to strengthen economic relations with Vietnam. For instance, US Treasury Secretary Janet Yellen once promoted Vietnam as a "friend-shoring" destination.

But if the US truly considers Vietnam to be a crucial partner in its "friend-shoring" strategy, the irony and protectionism of rejecting Vietnam's "market economy" status becomes glaringly apparent. There is every reason to be perplexed by Washington's contradictory behavior of putting up obstacles behind its displays of support. According to the Vietnamese Ministry of Industry and Trade, 72 countries recognize Vietnam as a market economy, including Australia, UK, Canada and Japan, demonstrating its active participation and open cooperation in global trade.

Meanwhile, the US economy is grappling with various challenges, such as high trade deficits, a decline in manufacturing and other issues. The US rejection of Vietnam's bid is a clear indication that the US is more inclined to take protectionist measures to protect its domestic industries and reduce the impact of external competition when it comes to dealing with economic challenges. 

Therefore, in the current economic situation, the US is unlikely to pursue an open trade policy as it did in the past. Washington may opt to leverage its market dominance to reshape the global distribution of industrial and supply chains, and consolidate its economic position and influence by putting up trade barriers, adjusting tariff policies and other means.

Washington's decision-making in terms of trade policy toward Vietnam is often deeply influenced by political motives and strategic considerations. Some US politicians are concerned that recognizing Vietnam's market economy status may indirectly help Chinese companies circumvent US curbs on Chinese imports. The mind-set reflects the increasingly politicized reality of US trade policy.

The US has been trying to squeeze out Chinese manufacturing by restructuring global industrial and supply chains, forcing many American and foreign companies focusing on exports to the US market to shift production to Southeast Asia, with Vietnam being seen as a key alternative. However, the reality is that instead of being squeezed out of the global industrial chain, China's manufacturing sector is constantly expanding and extending its supply chains to other regions like Vietnam and Mexico. The gap between expectations and reality indicates that it is not so easy as some thought to reshape the economic and trade landscape simply by using politically motivated policies.

This may explain why it is becoming more common to see Vietnam, Mexico and other countries face growing risks of being affected by US trade measures. 

If anything, it lays bare the short-sightedness and contradictions in US strategy and the politicization of its trade policy. The growing trend of relying on politicized trade measures disrupts international trade and exacerbates uncertainty and tension in the global economy.

This year marks the 20th anniversary of the comprehensive strategic partnership between China and Italy, as well as the 700th anniversary of Marco Polo's death. Both sides should view and develop bilateral relations from a historical dimension, facing important opportunities for mutual development. On the afternoon of July 29, Chinese President Xi Jinping met with Italian Prime Minister Giorgia Meloni, who is on an official visit to China, at the Diaoyutai State Guesthouse in Beijing. Xi's remarks highlighted not only the profound historical significance of China-Italy relations but also their contemporary relevance as a bridge for East-West exchange. Meloni said that as ancient civilizations, Italy and China have always admired and learned from each other. Italy highly values China's international status and role and is willing to inherit the long-standing spirit of the Silk Road to develop a closer and higher-level partnership with China, she noted.

In addition to coinciding with these two important anniversaries, Meloni's visit to China itself has garnered widespread attention. She is the first G7 leader to visit China following the third plenary session of the 20th CPC Central Committee and this is her first visit to China since taking office. Meloni announced this visit during a press conference following the G7 summit last month, which was seen as a subtle shift in Italy's approach to China, seeking to develop relations with China beyond the G7's tough stance. On July 28, Meloni stated that her five-day trip was a "demonstration of the will to begin a new phase, to relaunch our bilateral cooperation."

From the current perspective, this visit, widely interpreted as a "new chapter" and "restart," has indeed yielded fruitful results. It has met Italy's domestic aspirations for cooperation with China and provided strategic planning and arrangements for bilateral economic and trade cooperation. Most notably, the two sides issued a 2024-2027 action plan on strengthening their comprehensive strategic partnership. The bilateral cooperation covers emerging fields such as electric vehicles, renewable energy, and artificial intelligence and aims to upgrade traditional cooperation in areas such as trade and investment, industrial manufacturing, technological innovation, and third-party markets. Additionally, China and Italy signed several bilateral cooperation documents in industry, education, environmental protection, geographical indications, and food safety.

In recent years, due to the influence of some internal and external factors, there have been some twists and turns in the China-Italy relationship. It should be said that through this visit, the two sides have not only reached many cooperation agreements and brought new opportunities to both sides, but also deepened political mutual trust and once again stood at a new starting point. Practice has proven that China and Italy are indispensable partners on the path of development, and can share development opportunities on the basis of equality and mutual benefit. Italy's choice also indicates that as long as dialogue is conducted based on a pragmatic and rational attitude, the space for win-win cooperation and mutual development between China and Italy is still very imaginative.

From a deeper perspective, whether it is the establishment and deepening of the comprehensive strategic partnership between China and Italy, or the historical echoes of Marco Polo spanning 700 years, the key to the enduring vitality of the China-Italy relationship lies in the ability to approach and understand each other with equality and sincerity. China and Italy are both ancient civilizations on the Eurasian continent. Marco Polo was the first person to introduce China to Europe. If we can continue to uphold the spirit of the Silk Road of civilization exchange and mutual learning, then China-Italy relations will have a continuous source of vitality and dynamism.

Just as President Xi Jinping pointed out, "China and Italy should uphold and promote the Silk Road spirit, view and develop bilateral relations from a historical dimension, strategic height and long-term perspective, and push their relations to go steady and far."

We also noticed that Prime Minister Meloni said during this visit that Italy is ready to play a positive role in the candid dialogue between the EU and China and foster a more stable cooperative relationship. She said in a speech at an exhibition themed around Marco Polo and the Silk Road that the road from Italy to China is sometimes easy, sometimes difficult, but this road is always passable. In the current global era of great changes, as two major civilizations and markets, China and Europe urgently need more and deeper equal exchanges and mutual understanding. At this moment, Italy, as a bridge between East and West and a role in maintaining road access, will surely have a lot to offer.

China wins men's 4x100m medley relay gold at Paris Olympics

Venezuela has decided to sever diplomatic relations with Peru due to Peruvian Foreign Minister Javier Gonzalez-Olaechea's statement on the presidential election results in Venezuela, Venezuelan Foreign Minister Yvan Gil said on social media X late Tuesday local time.

"We are forced to make this decision after the reckless statements of the Peruvian foreign minister," Gil said on social media platform X, adding that the decision was made based on Article 45 of the Vienna Convention on Diplomatic Relations of 1961.

Before Venezuela's announcement, Peru on Monday refused to recognize the results of the Venezuelan presidential election and announced it had recalled its ambassador to Venezuela. In a post on X on the day, Peru's foreign minister slammed the result as "fraud," and a "violation of the will of Venezuelan people."

The presidential election of July 28 saw Nicolas Maduro secure a third term in office with 50.2 percent of the vote, according to the result presented by Venezuela's electoral council. Leader of the opposition Maria Corina Machado disavowed the results. 

Before severing ties with Peru, the Venezuelan government on Monday announced the withdrawal of all diplomatic staff from the embassies of seven countries that questioned the election result - Argentina, Chile, Costa Rica, Peru, Panama, Dominican Republic and Uruguay, and also demanded those countries withdraw their diplomatic representatives from Venezuelan territory.

Meanwhile, Cuba, Honduras and Bolivia congratulated Maduro on his victory. China and Russia also congratulated Maduro on his re-election.

The presidential election is an extremely sensitive topic, and compared with other countries, Peru's questioning of Maduro's re-election is more straightforward and fiercer, which may be the reason for the severing of diplomatic relations between the two countries, said Wang Youming, director of the Institute of Developing Countries at the China Institute of International Studies in Beijing.

The election has sparked protests in Venezuela, with clashes reported between the police and opposition supporters, causing at least 11 deaths, injuries to 48 military and police officers, and hundreds of arrests, media reported.  

Zhou Zhiwei, an expert on Latin American studies at the Chinese Academy of Social Sciences, said the controversy and chaos around Venezuela's election, both in the country and across the Latin America, reflects the sharp and intense political polarization of Latin American politics, despite the fact that left-wing governments are in power on a relatively broad scale.

"Not only in Venezuela's election, but also in other Latin American countries, the intensity of political power struggle between left and right wings is really high," Zhou said. "The elections in Brazil in 2022 and in Argentina in 2023 have both shown political rifts and a sense of tearing apart between factions."

According to Zhou, in such an environment of political confrontation, the cohesion of the whole region is weakened, and it is precisely an opportunity for external forces to play games.

US Secretary of State Anthony Blinken said on Monday that the US has "serious concerns" regarding Maduro's reelection. He called for election officials to publish the full results transparently and immediately. 

On Tuesday local time, Venezuelan Defense Minister Vladimir Padrino Lopez denounced an alleged coup attempt that was instigated by the opposition and the US amid violent protests, according to media reports. 

Over the past two decades, Latin America's joint development, regional integration, and diplomatic diversification have all advanced particularly quickly, coinciding with the "pink wave" of left-wing governance. But one of its spillover effects is to further weaken US hegemony and control in the region, Zhou said. 

Washington is certainly attempting to pursue a political ecology that suits its own interests, so it will seek to support the moderate right wing, pro-market forces and pro-American forces throughout the region, he added.

"It does not rule out the option of the US to further expand sanctions against Venezuela, along with further diplomatic isolation and political repression," Wang said, adding that "the US is also very likely to continue to increase its support for the opposition, whether it is financial support, public opinion support and personnel training, all kinds of means of color revolution shall be used."

Wang said the chaotic situation is unlikely to end in the short term, and the unity of Venezuela and Latin America will be tested. 

Pro-reunification groups in Taiwan island expressed strong opposition on Tuesday against external interference on the Taiwan question and protested against attempts by the Democratic Progressive Party (DPP) to collude with anti-China forces to destabilize cross-Straits relations as the International Parliamentary Alliance on China (IPAC) held its annual conference in the island on the same day. 

Some 48 lawmakers from 24 countries arrived in Taipei on Sunday for the IPAC conference, a cross-country anti-China coalition formed in 2020. According to media reports, this year's annual IPAC meeting will focus on "crafting a coordinated campaign" aimed at maintaining so-called "stability and peace" across the Taiwan Straits.  

The so-called coalition is centered on maliciously hyping issues related to China and spreading lies and rumors about China, and has no credibility whatsoever, Chinese Foreign Ministry spokesperson Lin Jian said on Tuesday. 

Lin emphasized that there is only one China in the world, and Taiwan is an inseparable part of China's territory. The Taiwan question is purely a matter of China's internal affairs and any external interference will not be tolerated. 

Taiwan regional leader Lai Ching-te attended the IPAC meeting on Tuesday and claimed that "a threat from China to any country is a threat to the world." In response, Foreign Ministry spokesperson Lin said that the DPP authorities under Lai are seeking "Taiwan independence" by relying on military force, which is like a mantis trying to stop a chariot. 

The one-China principle is a fundamental norm in international relations and a universal consensus of the international community. The DPP authorities under Lai are going against the current, seeking independence and resisting reunification, which is destined to be a dead end, Lin said. 

"The Taiwan question is China's internal affair and not interfering with other countries' domestic affairs are international norms. Not allowing foreign forces to interfere with our internal affairs is the basic and shared stance of Taiwan people who are committed in safeguarding cross-Straits peace," a statement sent to the Global Times by the Cross-Straits Peace Forum on Tuesday read. 

The Cross-Straits Peace Forum and other pro-reunification political and civil groups in Taiwan island have organized a joint action to oppose foreign interference on the Taiwan question. On Tuesday, they protested against the IPAC conference and the DPP's collusion with anti-China forces and sent the joint statement to Luke de Pulford, the creator and Executive Director of IPAC

Hostility across the Taiwan Straits cannot bring peace. Anti-China and confrontational policies adopted by the DPP authorities and international politicians will not safeguard peace across the Taiwan Straits; instead, they will incite conflict, the statement said.

Wu Jung-yuan, chairman of the Labor Party, who participated in the protest activity on Tuesday, said that as a transnational alliance, IPAC must abide by international law and it should stop interfering in China's internal affairs. IPAC should respect the majority public opinion in Taiwan, which desires peace and stability across the Taiwan Straits.

Chi Chia-Lin, president of the Reunification Alliance Party in Taiwan, said that IPAC is a thoroughly anti-China organization that deceives the world under the guise of a so-called "global parliament." Residents on Taiwan island should resolutely oppose IPAC's illegal interference in Taiwan Straits affairs.

Against the backdrop of the international community's widespread adherence to the one-China principle, the IPAC politicians' political stunts in Taiwan not only waste public resources but are also futile in changing the reality, Wang Wu-lang, secretary-general of the Cross-Straits Peace Forum, told the Global Times on Tuesday.

The DPP authorities' pursuit of "Taiwan independence" is unsustainable and unachievable. More and more people will realize that Taiwan separatism and external interference are the true disruptors of peace and the main sources of instability in the Straits and the region, Wang said. 

China's paleontology research team has recently identified a new genus and species of tyrannosaur that marks the first deep-snouted tyrannosaur discovered in southeastern China, according to Xinhua News Agency. 

The research was conducted by four paleontologists from the Zhejiang Museum of Natural History, and they named the new species "Asiatyrannus xui" in honor of Xu Xing, an academician of the Chinese Academy of Sciences, who has been dedicated to dinosaur research and has long supported the academic and popular science work of the museum. 

Zheng Wenjie, deputy director of the Earth Sciences Department and a researcher at the  museum, explained that the dinosaur, given the name "Asiatyrannus xui", lived during the Late Cretaceous period, which dates back 66 to 72 million years ago, according to Xinhua.

The fossil specimen includes an almost complete skull as well as tail vertebrae and hind limb bones. This dinosaur belongs to the more advanced Tyrannosaurinae subfamily within the Tyrannosauridae family. The related academic paper was published in Scientific Reports on Thursday. 

Zheng noted that tyrannosaurs are a large family classified under the superfamily Tyrannosauroidea. They first appeared around 165 million years ago in the Middle Jurassic and went extinct at the end of the Cretaceous period, which is about 66 million years ago. Within the superfamily, the Tyrannosauridae family members were the top predators in Asia and North America during the last 20 million years of the dinosaur era.  

Many people think tyrannosaurs have large heads. Zheng explained that based on snout characteristics, tyrannosaur heads can be divided into two types. 

Most Tyrannosauridae dinosaurs have deep-snouted heads, with relatively short skulls front to back and higher vertical distances between the upper and lower jaws, making them appear somewhat "square." The skulls of Tyrannosaurus and Tarbosaurus are examples of this type. Asiatyrannus xui measures 47.5 centimeters in length and also belongs to the deep-snouted type. 

Another group of Tyrannosauridae dinosaurs has long-snouted heads, with narrow snouts, and these dinosaurs are classified under the branch called Alioramini. 

In the central Asian Gobi region, scientists have discovered deep-snouted tyrannosaurs and long-snouted Alioramini living at the same time. The former are larger, possibly occupying different ecological niches. In southeastern China, however, the body size comparison is reversed. 

Asiatyrannus xui, which lived at the same time as the long-snouted Qianzhousaurus, was relatively small, while The Qianzhousaurus, estimated to reach a length of about 9 meters, was much larger. 

The newly discovered Asiatyrannus xui, although an immature dinosaur, had passed its fastest growth stage with a body length of only about half that of Qianzhousaurus. They likely occupied different ecological niches and employed different hunting strategies to avoid direct competition.

China Eastern Airlines received its seventh C919 plane on Monday. The delivery marks the third C919 aircraft received by the air carrier, the world's first C919 customer, this year.

At 16:25 on Monday, the C919 with the aircraft number B-919H flew from Shanghai Pudong International Airport to Shanghai Hongqiao International Airport, as the plane is officially joining China Eastern Airlines' fleet.

On May 28 this year, the first anniversary of the commercial operation of the C919, China Eastern Airlines' fleet welcomed the sixth C919. This was also the first of the 100 C919 aircraft ordered by the airline.

China Eastern is currently the world's largest user of the home-made C919 aircraft.

On September 28 of 2023, China Eastern Airlines and Commercial Aircraft Corporation of China (COMAC) signed an agreement to order additional 100 C919 large passenger planes.

At present, the C919 aircraft operate four regular commercial routes between cities of Shanghai to Chengdu, Beijing, Xi'an and Guangzhou.

The airlines said that more new routes are expected with the delivery and introduction of new C919 aircraft.

As of Sunday, China Eastern Airlines' C919 fleet has completed a total of 3,031 flights, facilitating nearly 405,000 passenger trips.

Suparna Airlines, known in Chinese as Jinpeng Airlines said it will receive its first C919 aircraft in the fourth quarter of this year, making it be the first private company in the world running home-made C919.

Domestic flagship carriers like Air China and China Southern Airlines have also placed additional orders for 200 C919 planes. At present, the global orders placed for C919 have exceeded 1,000 planes.

Illustration: Liu Rui/GT 

For nearly a century, Merck, the German scientific and technological giant, has woven its legacy into the fabric of China's healthcare industry. As global uncertainties loom, the company's dedication to the Chinese market remains unshaken. Peter Guenter, CEO of Healthcare at Merck, offers a compelling vision for China's pivotal role in global pharmaceutical innovation, propelled by artificial intelligence (AI).

"The Chinese local pharmaceutical market has developed incredibly over the last 10 to 20 years. The changes are remarkable, with the industry migrating from copying small molecules to innovation," recalls Peter Guenter, whose voice tinged with admiration. Reflecting on his early visits to China, Guenter remembers a time when the local industry was predominantly focused on generic small molecule drugs. Today, the landscape is totally different, transformed by cutting-edge innovation. Technological advancements, especially in areas like antibody-drug conjugates, have catapulted China to the forefront of pharmaceutical progress. Furthermore, China's efforts in upstream innovation, such as target discovery, are gaining significant momentum.

Technological Revolution in Healthcare

Guenter says the technological revolution reshaping the healthcare landscape is akin to the discovery of the human genome. "In the last 5 to 10 years, we have seen the emergence of many new technologies making certain biological targets druggable. We can reach them with medicines that would have been impossible with small or large molecules," he explains. Innovations like mRNA technology, pivotal in developing COVID-19 vaccines, and cell and gene therapies are pushing the boundaries of what's possible, offering more targeted and effective treatments. From reprogramming a patient's own cells to fight cancer to repairing genetic defects, these advancements are opening new frontiers in medicine.

AI and big data analytics are further enhancing drug research, speeding up discovery processes, and improving target identification. Merck is deeply engaged in these areas, leveraging these technologies to bring new treatments to the market more efficiently.

"The sheer volume of data is the secret sauce," Guenter states with conviction. Merck's collaborations with companies like BenevolentAI and Exscientia, which use AI to identify potential drug candidates, exemplify how AI accelerates the discovery process. By analyzing biological targets provided by Merck, these partnerships generate promising drug candidates faster than traditional methods.

Challenges and Opportunities in China

However, Guenter is candid about the challenges that remain. "In the pharmaceutical industry, we work with long innovation cycles. If we don't have predictability of a certain framework and that framework will remain in place for the foreseeable future, we struggle," he says. Incentivization measures, such as tax breaks for R&D, available in many European countries, are crucial for sustaining innovation and are also present in China.

China's significant role in the global pharmaceutical market is undeniable. As the world's second-largest pharmaceutical market, it offers ample opportunities for Merck to introduce its innovations and source local breakthroughs for global distribution. Yet, the high costs of drug development, estimated at a minimum of $2 billion to bring a new medicine to market, necessitate adequate pricing to recoup investments and fund further research. This balance between rewarding innovation and ensuring accessibility under universal healthcare systems is a global challenge, one that China is well-equipped to navigate.

In China for China

Merck's commitment to China is unwavering. "We believe we live in a complex world with a lot of geopolitical tensions. But we do believe in working together," Guenter says. Over the past decade, Merck has invested around 6 billion yuan in China, growing from 22 employees to 4,500. The company's diverse activities in healthcare, electronics, and life sciences reflect its holistic investment strategy. Local collaborations with Chinese biotech firms have been fruitful, and Merck aims to expand these partnerships further.

As China grapples with an aging population and rising incidences of cancer and diabetes, Merck stands as a committed partner, determined to help create, improve, and prolong lives. Guenter's personal resolve shines through in his reflections. "Whether we like it or not, sooner or later, we are all patients ourselves. When I'm in a meeting with many people, and they ask me, 'Peter, why are you in this business?' I ask the audience one question: 'How many of you have a friend or family member who was lost to disease? Please stand up.' And then everybody stands up. I say, 'That's why I'm in this business. It's as simple as that.'"

This deeply personal connection to the mission underscores Merck's commitment. Through fruitful collaborations with local biotech firms and a steadfast focus on innovation, Merck aims to expand its partnerships further, ensuring that its efforts benefit both Chinese patients and patients around the globe. 

"Our commitment to China is clear. We will continue to grow, and we will continue to invest in the country," Guenter says.

China's Nasdaq-style sci-tech innovation board of the Shanghai Stock Exchange, also known as the STAR Market, celebrated its fifth anniversary on Monday. It has helped more than 570 technology companies raise 1 trillion yuan ($137 billion), with 60 percent of them driving import replacement efforts, as a key driver of China's new quality productive forces.

The STAR Market has helped 573 companies in sectors such as information technology, biomedicine, high-end equipment, new energy, new materials, energy conservation, environmental protection and strategic emerging industries to go public, the China Media Group reported.

These companies have a total market capitalization of 5 trillion yuan. Their IPOS raised 910.8 billion yuan, and secondary rounds of financing raised 158.1 billion yuan, totaling more than 1 trillion yuan.

Thanks to consistent and significant investment in research and development, 30 percent of companies on the STAR Market have made groundbreaking products or projects, while 60 percent are leading the way in replacing imported products with their own innovative technologies.
The STAR Market has attracted a significant number of cutting-edge companies in the semiconductor and biotechnology industries. There are 114 chip companies, covering the entire industrial chain of the semiconductor sector, and 111 companies in the field of biomedicine.

This influx of innovative companies has helped solidify the STAR Market's reputation as a hub for groundbreaking technologies and advancements.

Qian Yujun, president of UBS China and chairman of UBS Securities, told the Global Times on Monday that the STAR Market has supported more than 500 technology companies in the past five years, showcasing its effectiveness in attracting and fostering innovation in the technology sector and the overall economy.

"These companies have showed a notable increase in research and development investment after their IPOs, leading to significant improvements in their operating income and profits. This demonstrates the positive impact provided by the STAR Market in empowering technology innovation," Qian said.

According to a resolution adopted at the third plenary session of the 20th Central Committee of the Communist Party of China, China will establish a mechanism for ensuring funding increases for industries of the future; improve the policy and governance systems for promoting the development of strategic industries such as next-generation information technology, artificial intelligence, aviation and aerospace, new energy, new materials, high-end equipment, biomedicine and quantum technology, and steer emerging industries toward sound and orderly development.

China will also improve the functions of the capital market to give balanced weight to investment and financing, prevent risks and tighten regulation to promote the sound and stable development of the capital market as well as facilitate the entry of long-term capital into the market.

This year, China's reform of the capital market has accelerated with several measures.

In June, China's top securities regulator rolled out new measures to further reform the STAR market to better serve sci-tech innovation and promote the development of new quality productive forces. The measures include giving priority to the listing of enterprises making breakthroughs in new industries, new business patterns and new technologies.

In April, the State Council released a new guideline, widely known as the State Council Nine-Point Guideline, to boost the high-quality development of the capital market through 2035.

The high-quality development of China's capital market has prompted foreign institutions to accelerate their presence in the Chinese capital market. BNP Paribas launched its securities unit in China on July 16 with registered capital of 1.1 billion yuan, according to company information website Tianyancha, making it the fourth securities firm with full foreign ownership in China.