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East Asia

War in Middle East ‘should never have happened’, says China’s top diplomat

At a press conference on Sunday (Mar 8), Wang Yi also renewed China’s call for an immediate ceasefire and said Beijing is ready to work with Middle Eastern countries to restore order in the region.

War in Middle East ‘should never have happened’, says China’s top diplomat

Chinese Foreign Minister Wang Yi speaking during a press conference on the sidelines of the National People's Congress in Beijing, China, on Mar 8, 2026. (Photo: CNA/Hu Chushi)

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08 Mar 2026 01:31PM
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BEIJING: China's top diplomat condemned on Sunday (Mar 8) the war in the Middle East, saying it "should never have happened" and calling once again for an immediate end to hostilities.  

Speaking in a wide-ranging press conference on the sidelines of China's Two Sessions, Wang Yi described how the region was currently "engulfed in flames".

"This is a war that should never have happened - and it is a war that benefits no party," said Wang, who is China’s foreign minister and the country’s top diplomat by virtue of his concurrent role as head of the Central Foreign Affairs Commission of the Communist Party.  

The conflict erupted on Feb 28 when the US and Israel launched strikes against Iran. Tehran has retaliated with missile and drone strikes on Israel and US interests in nearby countries, mainly in the Gulf.  

Israel has also launched fresh attacks in Lebanon after the Iran-aligned militia Hezbollah fired rockets and drones across the border.  

Beijing has previously blasted US and Israeli military actions in Iran, with which it has diplomatic and trade ties, and condemned in particular the killing of the country's Supreme Leader Ayatollah Ali Khamenei.  

Wang repeated this refrain on Sunday, calling for an immediate end to the fighting.

"Meeting force with force will only breed new hatred and lay the seeds for new crises," he said.  

An explosion erupts following strikes near Azadi Tower close to Mehrabad International Airport in Tehran on Mar 7, 2026. (Photo: AFP/Atta Kenare)

"China once again calls for an immediate halt to military operations, to prevent the situation from escalating further and to avoid the spillover and spread of the conflict,” Wang said, adding that China stands ready to work with Middle Eastern countries to “restore order” to the region.  

Wang also called for the “right and proper solution” to resolving tensions involving Iran and the Middle East. These include respecting state sovereignty, rejecting the abuse of force, non-interference in countries’ internal affairs and a return to political dialogue rather than military force.   

“Sovereignty is the cornerstone of the current international order. We believe that the sovereignty, security and integrity of Iran and all countries in the Gulf region should be respected and must not be violated,” the veteran diplomat said.  

He also rejected the abuse of force, urging that “might does not make right” and that “the law of the jungle must not return and rule the world”.   

“Wilful use of force does not prove one's strengths.” 

United States President Donald Trump has claimed the right to join Iran in deciding its next leader. Additionally, Trump on Friday demanded Iran’s “unconditional surrender”, hours after Iran's president announced that unspecified countries had begun mediation efforts.  

During his Sunday press conference, Wang emphasised that the people of the Middle East are the “true masters of the region” and that Middle Eastern affairs should be “determined by regional countries independently”.   

“Plotting colour revolutions or seeking regime change will find no popular support,” he added. 

Source: CNA/lk(ws)

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East Asia

Watch: China's top diplomat Wang Yi fields questions on foreign policy

The press conference at the Two Sessions comes at a time of heightened global tensions, with an escalating Iran war.

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08 Mar 2026 10:02AM (Updated: 08 Mar 2026 11:50AM)

China's foreign minister Wang Yi held a press conference on Sunday (Mar 8) on the sidelines of the country's biggest annual political gathering known as the Two Sessions.

It comes at a time of heightened global tensions, with an escalating Iran war.

Wang said US-China dialogue is vital to preventing globally damaging miscalculations. 

"Failure to engage between the two nations would only lead to misunderstandings and misjudgements, escalating toward confrontation and harming the world," China's top diplomat said.

With the US president focused on the war he and Israel launched against Iran, analysts are watching for signs that his meeting with President Xi Jinping this month will go ahead. China has not previously announced the summit, expected for the end of the month.

"The agenda for high-level exchanges (with the US) is on the table," Wang said. "What is required is for both sides to make thorough preparations to create a conducive environment to manage existing differences," he added, without giving further details.

Source: Agencies/gs/zl

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China vows to safeguard jobs and boost hiring as AI reshapes labour market

With a record 12.7 million graduates entering the workforce this year amid slowing growth and AI disruption, youth employment took centre stage at a Two Sessions press conference.

China vows to safeguard jobs and boost hiring as AI reshapes labour market
A record 12.7 million university graduates will enter China’s workforce this year, as slower growth and rapid AI adoption reshape the job market. (File photo: STR/AFP)
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BEIJING: China will expand job opportunities for young people, college graduates and migrant workers, officials said on Saturday (Mar 7), as mounting economic, demographic and AI-driven pressures weigh on the labour market.

“Employment is a must-answer question in the livelihood agenda at the Two Sessions, it concerns every household and the nation,” Wang Xiaoping, Minister of Human Resources and Social Security, told reporters at a livelihood press conference during the annual parliamentary meetings.

With a record 12.7 million new college graduates this year, youth employment took centre stage as Wang outlined targeted campus services, large-scale internships and skills training.

Wang said employment services would be introduced on campuses earlier in the academic year, with internship programmes and practical skills training expanded ahead of graduation.

Authorities will also expand local-level job opportunities, encourage hiring in labour-intensive sectors such as construction and hospitality, and step up recruitment in emerging industries.

China's urban youth unemployment rate for 16- to 24-year-olds, excluding students, stood at 16.3 per cent in January, down slightly from 16.5 per cent in the previous month, though the rate remains elevated.

Wang acknowledged market uncertainties but expressed confidence in maintaining stable employment. 

China can sustain positive momentum over the next five years, she added.

AI AND THE FUTURE OF WORK

Artificial intelligence has emerged as both a source of opportunity and uncertainty.

With automation and digital tools increasingly reshaping production and services, questions have grown over whether AI will displace certain roles faster than new ones are created.

“The rapid development of artificial intelligence is having a profound impact on employment,” Wang acknowledged.

“We are studying relevant policies to actively leverage AI in creating new jobs and empowering traditional roles,” she said.
 

A robot preparing drinks at the China Mobile stand during the Mobile World Congress in Barcelona on Mar 3, 2026. (Photo: AFP/Josep Lago)

Rather than viewing AI purely as a disruptive force, officials framed it as a tool that can enhance productivity and upgrade existing industries, provided workers are equipped with new skills.

More than 20 provinces have developed over 230 industry-linked “skills ecosystems” - training models that connect recruitment, training, evaluation and job placement, often led by enterprises. Authorities said such ecosystems will be expanded to better align workforce training with industrial demand.

The broader goal, Wang said, is to build a lifelong vocational training system that supports workers at different stages of their careers, allowing them to reskill as industries evolve.

Provincial governments are also aligning hiring with strategic growth sectors.

Guangdong, China’s largest provincial economy, created 1.49 million new urban jobs last year and has rolled out targeted recruitment drives for AI and robotics clusters under its “Million Talents” campaign.

Minister of Education Huai Jinpeng, Minister of Civil Affairs Lu Zhiyuan, Minister of Culture and Tourism Sun Yeli, Minister of Human Resources and Social Security Wang Xiaoping, Minister of the National Health Commission Lei Haichao attend a press conference on the sidelines of the National People's Congress in Beijing, China on Mar 7, 2026. (Photo: CNA/Hu Chushi)

PROTECTING NEW FORMS OF WORK

As more young people enter gig and flexible employment arrangements, the ministry also pledged to strengthen social protections for platform workers.

The occupational injury protection pilot programme - currently operating in 17 provinces and covering more than 25 million participants - will be expanded nationwide this year.

Authorities will also encourage greater participation in pension schemes among workers in new forms of employment and improve dispute resolution mechanisms to better safeguard labour rights.

Amid intense job competition and wage pressures, more young people are turning to gig and platform work - such as delivery riders, couriers, ride-hail drivers, livestreamers and other freelance roles.

Delivery workers make their rounds in Beijing on Mar 6, 2026. (Photo: CNA/Hu Chushi)

China has more than 200 million flexible workers, according to official data, accounting for roughly 27 per cent of total employment and nearly 43 per cent of the urban workforce. The scale underscores the growing importance of platform-based and non-traditional employment in China’s labour market.

Last year, China moved to close loopholes in its social insurance system, banning informal arrangements that allowed workers and employers to sidestep mandatory pension and medical contributions.

Officials said improving protections for gig workers is key to maintaining social stability and ensuring that technological innovation does not erode income security.
 

EXTENDING WORKING LIFE

While much of the focus remains on helping young people secure jobs, policymakers also signalled that older workers will remain economically active for longer.

China’s life expectancy is expected to reach 80 years by 2030, up from 79.25 years today. The demographic shift is driving efforts to expand elderly care while encouraging seniors who are able to continue working.

“For older workers, we will roll out suitable skills training programmes, deepen labour cooperation, expand employment pathways for migrant workers and strengthen regular employment assistance,” Wang said, adding that efforts would also focus on preventing people from falling back into poverty.
 

China’s population has been shrinking since 2022 as the country ages rapidly. (Photo: CNA/Hu Chushi)

China already has more than 300 million people aged 60 and above - over one-fifth of the population - and that figure is projected to approach 400 million by 2035.

Against this backdrop, authorities have begun gradually raising statutory retirement ages, with men set to retire at 63 instead of 60, white-collar women at 58 rather than 55, and blue-collar women at 55 instead of 50.

Alongside labour reforms, elderly care services are being strengthened.

Civil Affairs Minister Lu Zhiyuan said China is building a nationwide elderly care network, with expanded community care centres in towns and more comprehensive home-based services in cities.

“We are weaving a dense elderly care service network and have initially built a system covering both urban and rural areas,” Lu said, adding that more seniors will be able to access convenient services “at their doorstep or even at home”.

Source: CNA/mc(kl)

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More than half of China’s adults are overweight or obese. It must now beat the bulge, or else

If current trends continue, about 70 per cent of Chinese adults could be overweight or obese by 2030, which will put a strain on medical resources. CNA’s Insight looks at how Beijing is making weight control a national priority.

More than half of China’s adults are overweight or obese. It must now beat the bulge, or else

Qin Siping, 19, participating in a weight loss camp in Shenzhen.

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07 Mar 2026 06:00AM (Updated: 07 Mar 2026 11:58AM)
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SHENZHEN: Before she turned 18, Qin Siping thought “being a little fat didn’t matter” as she was still young. But time passed, and she felt her body “getting increasingly swollen”. Her colleagues even joked that she might “break the seat”.

So she quit her job to attend the QiDian weight loss camp in Shenzhen, where there is a structured schedule for daily workouts, carefully planned meals and early lights-out. Campers must also weigh in twice daily.

For Qin, now 19, this is less a fitness retreat than a reset. Four months into the programme, she has lost almost 30kg, after starting off weighing more than 110kg.

“My mum said to just focus on losing weight and not think about anything else,” she said.

Around her, dozens of other participants push through the same grind. Many of them cite health concerns, while some want to look better or feel more confident.

Participants must commit to staying at the QiDian weight loss camp for at least a month.

Shi Yizhi, 23, who has been staying at the camp for two months, said: “To be honest, I want to find a girlfriend. I used to be overweight, and I didn’t look my best.”

According to camp co-founder and chief coach Chen Fei, about 80 per cent of participants enrol voluntarily after recognising the risks obesity poses; the remainder are sent by families who “couldn’t bear to see them like this”.

Since it opened in 2021, the camp has trained nearly 10,000 students. It is one of a growing number of weight loss camps across China, a country where expanding waistlines have become hard to ignore.

About one in five Chinese adults were overweight or obese more than three decades ago. By 2021, China had more than 400 million adults in these categories — the largest number in the world, ahead of India and the United States.

More than half of Chinese adults are now overweight or obese. This figure could rise to 70.5 per cent by 2030 if trends continue, health officials warned in 2024 as authorities designated the next three years as “weight management years”.

China’s weight problem has also been designated as a major public health threat. CNA’s Insight examines what is driving the obesity surge and whether the country can rein it in before the health and economic costs grow heavier still.

RICHER FOODS, CHANGING LIFESTYLES

Like several other Asian countries, China sets a lower threshold for what counts as overweight or obese as measured by body mass index (BMI), a ratio of weight to height.

In the US, overweight is defined as a BMI of 25 to 29.9 and obesity as 30 or higher. But in China, the cut points are 24 and 28 respectively.

WATCH: More than half of China’s adults now obese or overweight — Can China beat the bulge? (46:05)

This reflects a physiological difference, highlighted family medicine physician Vicky Xu at Parkway MediCentre Xintiandi in Shanghai. Chinese with the same BMIs as Caucasians tend to have more body fat and face higher risks, such as diabetes and heart disease.

And more Chinese are at risk now because of their lifestyles. As incomes rose over the decades, diets changed, for example.

By 2015, fat accounted for more than 35 per cent of the energy intake of the Chinese, compared with about 20 to 25 per cent then in South Korea and Japan. Globally, China has one of the highest salt intakes. Meat, once reserved for special occasions, is now a staple.

Sugar, oil and protein intakes have climbed, said Xu, noting that fast food and takeaways have become “so popular, so convenient”, especially in the past decade.

Diners enjoying a meal at a Chinese fusion restaurant in Guangdong, China.

Hong Tao, the director of the Beijing Technology and Business University’s Institute of Business Economics, described China’s dietary development as a shift from “not having enough to eat” to deriving “satisfaction” from food.

At the same time as there has been increased access to calorie-dense meals, daily physical activity has declined. Urbanisation has drawn millions from farms into offices and factories, while mechanisation has reduced manual labour.

Long working hours compound the problem. In the first 11 months of last year, employees worked an average of 48.6 hours a week.

Mabel Lu Miao, co-founder and secretary-general of the Centre for China and Globalisation, said office workers seated for more than eight hours a day may also be eating at their desk and rarely exercising.

Fast food delivery is a convenient option for workers.

Stress adds another layer and “can make people eat more”, Xu added, describing “emotional eating” as a form of self-comfort. Alcohol, common at business gatherings, and sugary drinks such as bubble tea also increase people’s calorie intake.

For media agency owner Alpha Zang in Shanghai, late nights and heavy meals became routine after university. “I crave a big meal to reward myself,” said the 38-year-old, who weighs 125kg and is 172cm tall.

One dish is rarely enough to satisfy him, so he orders and finishes several.

Food also carries cultural weight in China. Gatherings centre round sumptuous meals, and warmth is expressed through abundance. Leaving guests underfed is seen as inhospitable.

As part of Chinese cultural tradition, parents and grandparents tend to dote on their little ones too, equating plumpness with health and good fortune.

As an only child — like many among his generation — Zang recalled his grandfather giving him an extra meatball even when he was full. “I was well fed from a young age and was always called a ‘little fatty,’” he said.

Alpha Zang with his parents.

A TICKING TIME BOMB

Over a decade ago, Li Xiaodi weighed more than 100kg too. She would have her menstrual period only once or twice a year. She felt lethargic every day. A doctor warned of more health problems if she did not change.

Today, the 28-year-old is the picture of health. A fitness influencer 164cm tall and weighing about 48kg, she posts workout and healthy eating tips online.

Her turnaround took years. “It felt as if eating was the biggest portion of my life,” she said, crediting her mother with helping in her weight loss journey.

Her experience reflects broader moves in China to confront overeating and its consequences. “(Obesity) isn’t just an individual problem. It’s a family issue,” said Hong. “It’s also a societal issue.”

Obesity is the sixth-leading risk factor for death and disability in China. Doctors classify it as a chronic disease linked to more than 200 conditions, including hypertension, heart disease and certain cancers.

“We need to keep body weight in the healthy range … to prevent chronic disease,” said Xu, who called excess weight a “health time bomb”.

One study estimates that without effective intervention, obesity-related healthcare spending could reach 418 billion yuan (US$61 billion) by 2030, accounting for 22 per cent of total health expenditure, up from 8 per cent in 2022.

In an ageing society, higher obesity rates among seniors — increasing the risk of other diseases — add “another layer of burden” to already heavy healthcare costs, said Yang Huang, head of China healthcare research at JP Morgan.

There are also productivity losses as health complications linked to excess weight can sap energy, limit mobility and lead to more sick leave taken, affecting both individual earnings and workforce efficiency.

According to Yang, healthy workers can be about 10 to 20 per cent more productive than obese individuals. 

Maintaining a healthy workforce is increasingly critical as the population ages, Miao added. She warned that obesity may also affect military readiness if a rising number of young people cannot meet recruitment standards.

Even among preschool-age children, about 30 per cent could be overweight or obese by 2030, officials warn. And research published in the Obesity Reviews journal found that obese children and adolescents were around five times more likely than others to become obese adults.

The consequences are increasingly visible to families. When Zang’s weight peaked at 208kg, he would be out of breath after walking “only a dozen steps”, his mother recalled. He would also nod off while driving, which “terrified” her.

He has since shed some unwanted pounds, exercising about thrice weekly and aiming to weigh 90kg. But business dinners continue to test his discipline. “Even if I’m very restrained, who can resist something so delicious and tempting?” he asked.

Zang making an effort to lose weight.

As anxieties about weight grow in China, so does the market for crash diets, fat-burning supplements and other quick fixes.

“Losing weight is a long struggle,” noted Xu, who cautioned against using unproven pills and treatment methods. “Slow (but) steady works faster.”

A NATIONAL PUSH FOR HEALTH

Having framed obesity as a public health threat rather than a cosmetic concern, Beijing is taking action at multiple levels.

Last March, at the Two Sessions policy meetings, the National Health Commission unveiled plans to establish multidisciplinary weight management clinics in hospitals nationwide, deepening the country’s three-year weight loss campaign.

LISTEN: Can China beat the bulge?

Hospitals are also being encouraged to adopt internet technologies, artificial intelligence and wearable devices. The government’s plan emphasises “prevention and control” across one’s lifespan, Hong highlighted, along with public education for families, schools, workplaces and communities.

“Preventing illness … is very effective, economical and scientifically sound,” he said. “It’s far less costly than waiting until illness develops or becomes severe before seeking medical attention.”

Just in the workplace, research has shown that every US$1 spent on wellness programmes can reduce future medical and absenteeism costs by about US$3 each, cited Yang.

The message about weight management appears to have resonated with the public. A white paper last year on adult health and weight control found that 70 per cent of people wanted to lose weight. More than half were already taking steps to do so.

Signs of this growing awareness are evident at Parkway MediCentre Xintiandi, where Xu is seeing more people aged between 20 and 50 seeking help.

Dr Vicky Xu with a patient seeking help with weight management.

Some of them are advised to adopt lifestyle changes only, while others may need medication. Surgery may be recommended to a small group, and some patients turn to traditional Chinese medicine as an alternative to drug therapy.

Over in Guangzhou, the LN Garden Hotel Nansha has installed weighing scales in guest rooms. More than 60 per cent of guests use them, according to hotel management.

“We must move with the country’s strategy,” said general manager assistant Jeffrey Guan, who characterised the hotel’s health-oriented facilities as part of “riding the wave”.

Amongst the private companies joining in the effort is an apparel heat transfer printer in Dongguan, where founder and plant manager John Gu has led employees in daily voluntary exercises for two years now.

John Gu leading his employees in a 15-minute exercise session.

“If you’re interested in exercising, you can definitely find 15 minutes … to do it,” he said, adding that simple routines can boost energy.

China’s fitness industry has been catching up, expanding from only 500 gyms in 2001 to more than 140,000 fitness venues last year.

Chen the boot camp co-founder said there are dozens of gyms in each district in Shenzhen, “maybe one every few hundred metres”, while many parks now have exercise equipment.

On social media, there are influencers like Li promoting balanced eating rather than extreme dieting. She urges followers to follow national dietary guidelines and avoid chasing unrealistic body standards. “As long as your BMI is normal, that’s enough,” she said.

With anorexia also on the rise between 1992 and 2021, Li thinks women should take “standard” to mean healthy and not under a certain weight.

Progress will also take time, Hong stressed, as weight management “isn’t a one-day task”.

Back at the boot camp, the grind continues for Qin. “I hope that after leaving this place, I won’t regain all that weight,” she said. “I hope I can control myself a bit — not eat everything I want.”

Watch this episode of Insight here. The programme airs on Thursdays at 9pm.

Source: CNA/dp

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China unveils measures to become ‘best export destination’ amid global turmoil and surplus scrutiny

Speaking on Friday (Mar 6), Chinese commerce minister Wang Wentao outlined incentives aimed at drawing global businesses into China’s vast domestic market. 

China unveils measures to become ‘best export destination’ amid global turmoil and surplus scrutiny

A container ship is docked at the Port of Tianjin for cargo operations on Aug 30, 2025. (Photo: CNA/Hu Chushi)

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BEIJING: The Chinese government will be conducting studies of individual countries’ capacity to export to China and offer targeted support to help them improve, an initiative aimed at making the world’s second-largest economy the “best export destination” for more trading partners, said its commerce minister.

“As a responsible major country, China is proactively opening its super-large market,” said Wang Wentao at a press conference on the sidelines of the Two Sessions on Friday (Mar 6).

“We treat the market as an opportunity, as cooperation.”

He said Beijing will be publishing an “Export to China Capability Development Report” - that assesses each country's export strengths, and then provides concrete assistance to help them improve - in what he described as “precise supply-demand matching”.

Citing how some countries were using market access “as a weapon and a bargaining chip” and “implementing protectionism”, Wang pointed to how Beijing has been doing the opposite.

These included moves such as three flagship programmes - Buy in China, Export to China and Invest in China - aimed at allowing goods, services, people, technology and capital to flow between domestic and international markets.

Visitors at the China pavilion during the 8th China International Import Expo (CIIE) in Shanghai on Nov 7, 2025. (Photo: AFP/Hector Retamal)

More than 100 “Export to China” events have also been planned for this year - with the United Kingdom, Kazakhstan, Kenya and Thailand among countries receiving tailored “one-country, one-strategy” approaches.

China's full-year goods trade surplus hit nearly US$1.2 trillion in 2025 - drawing attention from trading partners worldwide.

Wang acknowledged the friction directly. "We have noticed the concerns of our trading partners. We will promote balanced trade development," he said.

"Exports and imports are like the two wheels of a car. If they are balanced, the car runs more smoothly and can go further."

Balanced trade means stabilising exports while expanding imports, he said - specifically agricultural products, quality consumer goods, advanced technology and equipment, and key components.

"We are the world's second-largest economy, but at the same time we are also the world's second-largest import market. Our market is a proactively open market," Wang said.

CHINESE COMPANIES GOING OUT 

Wang also detailed a less-discussed dimension of China's global expansion: as Chinese manufacturers and investors move abroad, they are pulling Chinese service providers with them - from R&D and design firms to financial, legal and consulting companies.

“Accompanying 'Made in China' going overseas, we will expand exports of R&D, design, testing, maintenance and other productive services. And as Chinese investment goes overseas, it will bring along the coordinated export of financial, legal, consulting and other professional services," he said.

China's cross-border e-commerce imports and exports reached 2.75 trillion yuan (around US$400 billion) last year. Chinese digital content - online novels, games and web dramas - is sweeping overseas markets, Wang said.

China Securities Regulatory Commission Chairman Wu Qing and Chinese Commerce Minister Wang Wentao attend a press conference on the sidelines of the National People's Congress, in Beijing on Mar 6, 2026. (Photo: Reuters/Maxim Shemetov)

Goods imports and exports reached 45 trillion yuan in 2025, growing 3.8 per cent and marking nine consecutive years of expansion. 

Services imports and exports exceeded 8 trillion yuan, maintaining China's position among the world's top.

Exports to the United States fell 19.5 per cent in yuan terms, yet overall exports still grew 6.1 per cent.

“This decrease and increase is the result of our diversification strategy," Wang said.

Belt and Road partner countries accounted for 51.9 per cent of total trade.

However, Wang cautioned that “the external environment remains complex and severe, and pressures on stabilising trade remain considerable.”

Vehicles and trucks for export wait for transportation from a port in Yantai in eastern China's Shandong province on Jan 2, 2025. (File photo: Chinatopix via AP)

THE YUAN: STABILITY AS A FEATURE

At the press conference, People's Bank of China Governor Pan Gongsheng sent a direct signal to trading partners anxious about currency risk: the yuan will not be weaponised.

"China has no need and no intention to seek trade competitive advantage through currency depreciation," he said.

The yuan appreciated nearly 4.5 per cent against the dollar in 2025, Pan noted, broadly at the median level among major economies.

The yuan is now China's largest settlement currency for its own foreign exchange receipts and payments, and the world's second-largest trade finance currency, he said.

Foreign holdings of yuan-denominated assets - including stocks, bonds, deposits and loans - have crossed 10 trillion yuan.

The outstanding stock of panda bonds - yuan-denominated debt issued in China by foreign entities - grew 34 per cent year-on-year, with new issuance exceeding 170 billion yuan in 2025.

Governments, international development institutions, financial institutions and large corporations are among the issuers, with Pan describing the market as “very active”.

More than 60 per cent of China's trade is now relatively insulated from exchange rate swings, Pan said, through a combination of yuan settlement and corporate hedging tools - each accounting for 30 per cent - a proportion he said is expected to rise further this year.

He also pointed to the US-Israeli military strikes on Iran as an example of how complex exchange rate pressures have become.

"Recent military strikes by the United States and Israel on Iran have triggered a sharp rise in risk aversion sentiment in global financial markets, causing sharp fluctuations in the dollar index and exchange rates of major economies - something very visible in international financial markets over the past week," he said.

Birds fly as smoke rises following an explosion, after Israel and the U.S. launched strikes on Iran, amid the U.S.-Israel conflict with Iran, in Tehran, Iran, March 2, 2026. (Photo: WANA (West Asia News Agency) via REUTERS/File Photo)

DOMESTIC ENGINE

Officials made plain that the answer to external pressure is domestic demand - and this year, the government is handing consumers control over how stimulus gets spent.

A 100 billion yuan central fiscal package - covering six policies across private investment and household consumption - is among the measures Beijing has deployed to boost domestic demand.

Finance Minister Lan Fo'an also announced a redesign of China's consumer loan interest subsidy scheme.

"(We are) shifting from the government setting the menu to consumers ordering their own dishes," he said.

Everyday consumption by ordinary people - goods or services, large or small, online or offline - now qualifies for a one percentage point loan interest subsidy.

The ceiling per loan has been raised to 3,000 yuan, corresponding to a loan of up to 300,000 yuan, covering major outlays such as cars and home renovation.

Eligible lending institutions have been expanded from 23 to more than 500, including online consumer credit products, credit card instalment plans and auto finance companies.

China Securities Regulatory Commission Chairman Wu Qing (second from left), Chinese Commerce Minister Wang Wentao, National Development and Reform Commission Chairman Zheng Shanjie, Chinese Finance Minister Lan Foan and People's Bank of China Governor Pan Gongsheng at a press conference on the sidelines of the National People's Congress in Beijing, China on Mar 6, 2026. (Photo: CNA/Bong Xin Ying)

“China's economic output is projected to increase by more than 6 trillion yuan this year - equivalent to the entire annual output of a developed economy," said National Development and Reform Commission Chairman Zheng Shanjie.

Six emerging pillar industries - integrated circuits, aerospace, biopharma, low-altitude economy, new energy storage and intelligent robotics - were already valued at close to 6 trillion yuan in 2025 and are expected to double or more to over 10 trillion yuan by 2030.

Six future industries - quantum technology, biomanufacturing, green hydrogen and nuclear fusion energy, brain-computer interfaces, embodied intelligence and 6G - are at an early stage of development.

"These industries are on the eve of technological breakthroughs. Today's future industries may be tomorrow's emerging pillar industries," Zheng said.

Workers prepare humanoid robots for a performance at a trade fair in Beijing on Feb 18, 2026. (AP Photo/Vincent Thian)

For foreign investors, Wang, the commerce minister, has this pitch.

"The next China is still China," he said, adding that foreign companies now see China as "a gym and a testing ground" - a massive market with rich scenarios for innovation, R&D and application.

Capital markets are being rewired to support that ambition.

China Securities Regulatory Commission Chairman Wu Qing confirmed that a reform of ChiNext, China's technology-focused stock exchange, is "basically finalised" and will be released when the timing is right - bringing more inclusive listing standards, an IPO pre-review for firms with breakthroughs in core technologies, and an improved refinancing mechanism.

Manufacturing and services are projected to generate over 10 million new jobs annually through the 15th Five-Year Plan period.

Zheng said Beijing will monitor the impact of artificial intelligence on employment - improving skills training and giving full play to AI's role in creating new jobs and empowering existing ones.

Beijing also pledged to increase social insurance enrolment among gig workers, migrant workers and those in new forms of employment - such as food delivery riders and couriers - to reduce what Zheng called their “worries”.

Delivery riders outside a supermarket in Beijing. (AP Photo/Andy Wong)

Beijing is also opening specific sectors to foreign providers.

Value-added telecommunications, biotechnology and wholly foreign-owned hospitals were all named by Wang as areas where pilot programmes are being pushed forward.

To pull in foreign visitors and their spending, departure tax refund rules will also be upgraded to a “2.0 version” - expanded in scope and simplified, Wang said.

During the Spring Festival holiday from Feb 15 to 23 - departure tax refund sales rose 94.3 per cent in Beijing, 1.5 times in Shanghai and 3.4 times in Zhejiang.

Domestic consumption is also moving. Spring Festival saw 596 million domestic tourism trips generating a record 803.5 billion yuan in spending. 

In a first for recent years, offline retail outpaced online during the holiday period, with daily sales at major retail and catering enterprises rising 5.7 per cent year-on-year.

Source: CNA/xy(ht/kl)

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Singapore

Singapore ready to enter new chapter in relations with Japan, deepen ties with China and South Korea: Sim Ann

Singapore hopes Japan will find ways to resolve its outstanding wartime issues, says the Senior Minister of State for Foreign Affairs.

Singapore ready to enter new chapter in relations with Japan, deepen ties with China and South Korea: Sim Ann

Senior Minister of State for Foreign Affairs and Home Affairs Sim Ann speaking at a Business China event on Mar 6, 2026. (Photo: CNA/Justin Tan)

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06 Mar 2026 08:49PM (Updated: 07 Mar 2026 10:58AM)
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SINGAPORE: Singapore is ready to enter a new chapter in its relations with Japan, as it deepens ties and cooperation with Northeast Asian partners China and South Korea, Senior Minister of State for Foreign Affairs Sim Ann said on Friday (Mar 6).

Speaking at a Business China event, she noted that Prime Minister Lawrence Wong will visit Japan later in March, as part of his introductory visits across the Asia-Pacific region.

The occasion will mark 60 years of diplomatic ties between Singapore and Japan, she said, adding that Singapore looks forward to further collaboration in areas including the digital economy, green transition and security.

Singapore believes it would benefit the region if Japan deepens cooperation with more Asian partners and contributes more to peace, stability and prosperity in APAC, said Ms Sim in Mandarin.

“At the same time, we recognise that the severity of the damage and suffering caused by Japan during World War II continues to create difficult historical issues in parts of Asia,” she said, adding that these issues must be handled with sensitivity.

After 80 years, the passing of generations and shifts in the broader strategic environment, Singapore hopes that Japan will consider how to put these outstanding issues to rest, said Ms Sim.

Doing so would allow Japan to contribute even more to the region and help build an open and inclusive regional architecture, she added.

“This reflects Singapore’s long-standing view that honest remembrance and continued efforts at reconciliation can strengthen regional trust.”

With an evolving geopolitical landscape, expanding and deepening regional engagement is not optional for Singapore, but strategic and essential, she said.

While the Association of Southeast Asian Nations (ASEAN) remains the cornerstone of Singapore’s foreign policy, Singapore cannot engage ASEAN alone, Ms Sim said. Some of its key partners – China, South Korea and Japan – are in Northeast Asia, whose growing importance reflects a broader shift in the global economy.

“Asia is no longer defined principally by its role in global production networks. It has emerged as a major centre of consumption, innovation and capital formation in its own right,” she said.

These three key partners and ASEAN, often referred to as ASEAN+3, account for 28 per cent of global final demand, making it the world’s largest collective market, she added, noting that this reflects a rebalancing of the global economy towards the region.

NORTHEAST ASIA PARTNERS

As the world’s second-largest economy and a leader in several sectors, China plays a particularly consequential role among Singapore’s partners, given its scale, proximity and influence in regional and global developments, said Ms Sim.

Singapore and China marked 35 years of diplomatic relations in 2025, and China was the first non-ASEAN country Mr Wong visited after becoming prime minister.

Singapore serves Chinese businesses as a regional gateway to ASEAN markets, while Singapore companies are consistently encouraged to engage the Chinese market, said Ms Sim.

“China has spoken of its role as a responsible major power. Given China’s scale and weight, its policies have significant influence on regional and global stability,” she said. “In this period of heightened uncertainty, China can help anchor confidence in the international system.”

On South Korea, Ms Sim noted that President Lee Jae Myung made a state visit to Singapore earlier this week. The two countries are among each other's top 10 trading partners and share similarities in their developmental experience as “Asian tigers” – advanced, trade-dependent economies that value innovation and openness.

“We share a common goal to uphold the rules-based multilateral trading system,” she said, adding that South Korea plays an increasingly important role as a major trading nation with deep links across global supply chains.

Ms Sim then outlined Singapore’s long history with Japan.

In the 19th century, Japanese traders formed a small but distinct community in Singapore, then a growing port city. Then came the Japanese Occupation during World War II, when people of all races suffered hardship and violence.

“The Chinese community, in particular, experienced severe reprisals due to their strong support for China’s anti-Japanese war efforts – the most horrific was the Sook Ching operation, in which tens of thousands of innocent civilians lost their lives,” she said.

“These tragic events are clearly documented and transmitted through memorials, exhibitions and our history texts, so that each generation understands what happened. We remember this history not to reopen wounds, but to ensure we never lose sight of its lessons.”

She noted that disinformation videos recently circulated online, falsely claiming Singapore had changed its stance on Japan under external and domestic pressure.

After independence, Singapore had to decide how to move forward, balancing demands from Singaporeans that wartime suffering be acknowledged. The issue was resolved bilaterally in 1966, when Japan provided S$50 million in grants and special loans – opening the way for Japan to participate in building modern Singapore.

Today, more than 5,300 Japanese companies operate in Singapore, employing more than 100,000 Singaporeans.

“Now we are ready to enter a new chapter in our relations,” Ms Sim said.

During a dialogue, a participant asked about Singapore's position on Japan's World War II involvement, adding that some people online felt that Singapore's stance seemed somewhat inconsistent. They noted a recent memorial service at the Civilian War Memorial, where Minister for Education Desmond Lee said Singapore cannot, and must not, forget the painful experiences of the Japanese invasion.

In response, Ms Sim referred to a speech Singapore's founding Prime Minister Lee Kuan Yew made at the unveiling of the Civilian War Memorial in 1967, when he said that the monument was not intended to warn about another invasion from the Japanese, as the world has changed. Rather, the monument serves as a reminder that Singapore needs to take a long-term perspective when formulating national policies to ensure that the country can cultivate the largest circle of reliable and strong friends.

"This captures our clear and consistent view of Japan," Ms Sim said. 

"Singapore remembers our history clearly. We do so not to reopen wounds, but to ensure we internalise its lessons. And the most important lesson we drew from our experience in World War II continues to motivate us strongly today - to maintain our sovereignty and independence. As a sovereign state, it is in our interest to forge many mutually beneficial relationships with other countries, including Japan."

SINGAPORE'S FOREIGN POLICY APPROACH

Ms Sim was also asked about Singapore's foreign policy approach under the fourth-generation leadership helmed by Prime Minister Wong.

"Singapore’s 4G leadership has indeed maintained our consistent approach. We engage multiple partners and support multilateral or bilateral frameworks that uphold peace and stability," she said.

"The situation we currently face is one where the world is changing and the world order that we were familiar with is now over. In an ever-changing time like this, we need to adapt in a steady manner that is in line with Singapore’s interests."

On whether Singaporeans, especially young people, understand the country's foreign policy considerations, Ms Sim said the government recognises that domestic support is central to Singapore’s foreign policy.

"When citizens have a clear understanding of our national interests, trust the government, and strongly support the maintenance of our domestic harmony and unity as well as identify with what defines us as a multiracial, multicultural, multi-religious society - then our diplomatic position can be very firm," she said. 

"This is very important. Hence, the government and MFA will continue to engage Singaporeans on our foreign policies through various platforms such as today's forum."

Another participant asked about what Singapore should do when its friends have disputes or conflicts.

"Singapore hopes to cultivate a wide circle of reliable and strong friends through principled engagements with many countries. At the same time, we encourage open dialogues and work towards building diverse partnerships. This has been our consistent approach in foreign diplomacy," Ms Sim said. 

She noted recent parliamentary comments by Minister for Foreign Affairs Vivian Balakrishnan that in Singapore's engagements with many countries, it strives to be a country that is useful to the world, but not one to be made use of.

"Even as we face many changes and uncertainty, we do not adopt a pessimistic nor fatalistic attitude. We proactively conduct our foreign diplomacy in a consistent manner," Ms Sim said, adding that this includes its multilateral engagements with ASEAN and major countries.

"This ensures the continuity of dialogues and cooperation, even when tensions arise between some countries. We believe this is a more flexible approach, one that also promotes mutual trust. Through this, Singapore hopes to play our part in supporting the handling of global affairs in a rules-based approach," she said.

 

Source: CNA/hw(kg)

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World

Australia complains to China after encounter between military helicopters

A Chinese helicopter rolled towards the Australian aircraft, requiring the Australian crew to take evasive action: Australia's military

Australia complains to China after encounter between military helicopters

Chinese helicopters fly during the 15th China International Aviation and Aerospace Exhibition in Zhuhai, in south China's Guangdong province on Nov 12, 2024. (Photo: AFP/Hector Retamal)

06 Mar 2026 06:26PM (Updated: 06 Mar 2026 06:40PM)
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SYDNEY: Australia has raised concerns with China following an "unsafe and unprofessional" encounter between two military helicopters, the defence department said on Friday (Mar 6).

An Australian military helicopter was flying over international waters in the Yellow Sea when it was intercepted by a Chinese helicopter on Wednesday, a statement said.

The Chinese helicopter matched the Australian aircraft's altitude before "closing in to an unsafe distance", increasing speed and then rolling towards it, requiring the Australian crew to take "evasive action".

"This was an unsafe and unprofessional manoeuvre that posed a risk to our aircraft and its personnel," the statement said.

Australia was undertaking a routine patrol in the Yellow Sea as part of the international effort to enforce United Nations Security Council sanctions against North Korea, it said.

No injuries were reported in the encounter between the People's Liberation Army-Navy helicopter and the aircraft of the Australian Defence Force.

The incident is the latest in a series of military encounters involving China that Australia has called out publicly in similar terms.

In October, it also criticised as "unsafe and unprofessional" the actions of a Chinese fighter jet that dropped flares near one of its maritime patrol planes.

The Chinese embassy did not immediately respond to a request for comment.

Source: Reuters/ec

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Commentary

Commentary: As US wades into Iran, its pivot to Asia lies in tatters

A long war in Iran will hurt America’s ability to deter China, says Kevin Chen from the S Rajaratnam School of International Studies.

Commentary: As US wades into Iran, its pivot to Asia lies in tatters

A plume of smoke rises following a US-Israeli military strike in Tehran, Iran on Mar 3, 2026. (Photo: AP/Vahid Salemi)

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06 Mar 2026 05:59AM (Updated: 06 Mar 2026 10:57AM)
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SINGAPORE: The Trump administration’s “pivot to Asia” did not last long. In May 2025, Secretary of Defense Pete Hegseth declared that America is “here to stay” in the “priority theatre” of the Indo-Pacific. By the end of the year, the Trump administration’s National Security Strategy told a different story, prioritising the Western Hemisphere over the Indo-Pacific. 

Now, with the US waging an escalating war against Iran, its security commitment to Asia is in doubt again.

Observers of the region have warned about the shortcomings of American engagement for years, including lacklustre economic ties and a tendency to view the region through the prism of US-China competition. Security engagement and deterring China were the only consistent pillars of the crumbling strategy. 

The question must be asked: What trade-offs will this have for the US’ ability to deter China from aggressive actions in Asia? The answer is sobering. 

While some contend that there is strategic sense in trying to shift the Middle East away from China’s economic orbit, the evidence points to the US walking into a conflict that has no clear end and will leave it less prepared for a potential showdown with Beijing. Three implications stand out.

COSTS FOR US STRATEGY IN ASIA

The first is the risk of the conflict intensifying and broadening. The US and Israel aim to destroy Iran’s missile launchers before Iran’s missiles overwhelm their finite defence munitions. Iran, meanwhile, aims to expand the war to the Gulf states, increasing the costs to force Washington to back off. 

Washington wants to make this war a sprint, while Tehran wants to make it a costly melee. 

No one can say when the US decides that its objectives have been met. Nonetheless, it would be difficult for Washington to pay attention to Asia if its strategic bandwidth is held hostage by the Middle East. 

The second is the rapid depletion of American munition stocks. On Wednesday (Mar 4), US Central Command said that they had hit nearly 2,000 targets inside Iran. Observers have cautioned that the US is depleting its stockpile of Tomahawk cruise missiles that could be necessary for a conflict with China. 

US missile defence munitions present a serious problem as well. During last year’s 12-day war between Israel and Iran, US stockpiles of missile interceptors were “severely affected”, with more than 150 Terminal High Altitude Defense (THAAD) Interceptor missiles expended. Many more will likely be used in the current fight against Iran, which has been estimated to have fired over 500 ballistic missiles and over 2,000 drones by Wednesday.

To be fair, the US-Israeli strikes appear to have been effective in damaging Iran’s offensive capabilities. US officials noted that the rate of Iran’s ballistic missile launches was down 86 per cent from Feb 28, with a 23 per cent decrease on Mar 4 alone. Reports have also pointed to a supplemental budget request worth US$50 billion being fast-tracked to replenish US missile stockpiles. 

Inherently, US forces are not about to run out of munitions. However, every missile that it uses in the Middle East will take time and money to replace.

Third, there is the issue of the broader economic and political impact of a war in the Middle East. Shipping through the Strait of Hormuz, which includes one-fifth of global oil supplies and large quantities of liquefied natural gas (LNG), virtually halted. Maritime insurers have also begun to cancel war risk cover and raise the premiums for vessels in the Gulf, threatening broader supply shocks. 

The implications of a surge in energy prices alone would be devastating for key US allies such as Japan and South Korea, which import much of their energy needs. The US itself is not immune to price disruptions, even though it produces a lot of oil and gas. In a midterm election year, high oil prices and inflation levels could have severe implications for government cohesion and readiness when it comes to deterrence.

THE LONGER IT LASTS, THE BETTER?

Some observers have argued that Washington’s pressure on Tehran is part of a broader gambit against Beijing. Their reasoning is that the orientation of the Middle East will be a key determinant of whether the US can prevail in a confrontation against China, not only by cutting off a key oil source but also by economically isolating it. 

However, such arguments overstate the relationship between Tehran and Beijing. 

China has relatively few direct investments in Iran. While Iran depends on China to buy almost all of its oil, it only accounts for 13 per cent of China’s crude oil imports. Beijing has a diversified energy portfolio with alternative sources, such as Russia. 

China might even see a weakened Iranian regime as an opportunity to increase the economic influence it has with the country.

Indeed, beyond pushing Tehran to keep the Strait of Hormuz open to shipping, Chinese leaders appear content to sit back and watch the conflict unfold. Every missile fired is one less munition in the US stockpile, while the economic and political ramifications of the war will only grow with time.

By the time the US disentangles itself from the conflict, it may be too exhausted and under-equipped to properly deter China. The best-case scenario for Washington would be a swift end to the war, but no such outcome is visible on the horizon.

Kevin Chen is an Associate Research Fellow with the US Programme at the S Rajaratnam School of International Studies (RSIS), Nanyang Technological University (NTU), Singapore. He writes a monthly column for CNA, published every first Friday.

Source: CNA/ch

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