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China sets in motion national carbon emission trading market

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China’s high-profile national carbon emission trading market commenced trading on July 16. Power generation industry will be the first among all industries to try the new trading system, and the market will only allow spot trading in carbon emissions quotas among key emitters of the power generation industry during its start-up stage, according to a press briefing held on July 14.

This year marks the first implementation cycle of China’s national carbon market, which has included more than 2,000 key carbon dioxide emitters in the power generation industry in the first batch of trading, said Zhao Yingmin, vice minister of China’s Ministry of Ecology and Environment (MEE), at the press briefing held by the State Council.

The aggregate annual amount of carbon dioxide emissions of the power companies included in the first batch of trading exceeds four billion tons, which means China’s national carbon emission trading market will become the world’s largest carbon market in terms of the volume of greenhouse gases it handles.

Carbon emission trading refers to the buying and selling of the rights to emit carbon dioxide like commodities. Before trading, the government allocates carbon emissions quotas, or the rights to emit carbon dioxide, to enterprises and other key emitters of carbon dioxide.

A company that manages to keep its actual carbon emissions below its quota by increasing investment in R&D and enhancing technological innovation can sell the rest of its granted quota on the trading market. Likewise, if a company’s actual amount of carbon emissions surpasses its quota, it needs to buy carbon emissions right from other companies at market price to offset its excess carbon emissions.

The carbon emission trading market represents a major institutional innovation of China to control and reduce greenhouse gas emissions and promote green and low-carbon development by leveraging market mechanisms.

The carbon emission trading market is expected to be an important scheme for China to realize the goal of peaking carbon dioxide emissions by 2030 and achieving carbon neutrality by 2060, according to Zhao, who added that the practice of foreign countries has proven that carbon market is a policy instrument for realizing certain carbon emission reduction goals at a relatively low cost.

Compared to traditional administrative means, establishing a carbon market can not only make enterprises take responsibility for the control of greenhouse gas emissions, but provide corresponding economic incentive mechanisms for carbon emission reduction, thus lowering the cost of reducing carbon emissions for the whole society, driving innovation and investment in green technologies, and offering effective tools for properly handling the relationship between economic development and carbon emission reduction, Zhao explained.

It should be noted that the quality of carbon emissions data of enterprises is particularly important for fair allocation of carbon emission quotas across the country. According to Zhao, China adopts a unified, open, and transparent method of allocating carbon emission quotas and makes the authenticity and accuracy of carbon emissions data the utmost priority in the construction of the national carbon market.

Since the national carbon market is expected to guide optimal allocation of resources for carbon emission reduction according to prices, how the transaction price for trading is set and what level it will be kept at have drawn wide attention.

From a microcosmic and near-term perspective, the transaction price is determined by the supply and demand of the quotas, while macroscopically and in the long run, it is determined by the overall situation of and trend in economic operation and industry development, Zhao noted.

The transaction price of carbon emissions trading should be neither too high nor too low, according to Zhao, who explained that if the price is too low, it will dampen enterprises’ enthusiasm for reducing carbon emissions; but if the price is too high, it will overburden some companies with heavy carbon emissions.

According to the seven pilot carbon trading programs, the weighted average carbon prices have been around 40 yuan (about $6.2) a ton in the recent two years, Zhao said at the press briefing.

On the basis of sound initial operation of the national carbon emission trading market, China will include more industries with heavy carbon emissions, such as iron and steel, non-ferrous metal, petrochemical, as well as aviation, into the market, according to the press conference.

The MEE will make continuous efforts to improve supporting institutional systems, promote the introduction of interim regulations on the management of carbon emission trading, and complete relevant technical regulations, standards, and management systems, Zhao said.

By Liu Yi, People’s Daily

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China’s new chapter in global innovation

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By Gu Yekai, Liu Yiqing, People’s Daily

At a smart construction project site managed by China State Construction Engineering Corporation, a quiet technological revolution is underway. Amid cranes and concrete, engineers are deploying advanced artificial intelligence (AI) systems that could fundamentally reshape the construction industry.

Li Fengjian, an AI specialistwith Xianyuan Technology, detailed how the company’s latest intelligent system – built on a large model – adapts to complex construction environments.”Engineering machinery equipped with intelligent agents can adjust its operations automatically in response to weather conditions,” Li explained, adding that a spatiotemporal sensing network further enhances the system, providing real-time tracking of both personnel and materials throughout the construction site.

In February this year, Xianyuan Technology rapidly integrated its self-developed model with DeepSeek-R1, effectively blending a general-purpose framework with industry-specific models. This integration, Li noted, has produced a solution capable of delivering expert-level performance in challenging, dynamic environments. The firm is based in the Shanghai Foundation Model Innovation Center, aburgeoning AI incubator that now hosts over 200 innovative enterprises.

China’s technological transformation extends well beyond the construction sector. Overthe past three decades, the country has evolved from its initial forays into internet connectivity to becoming a key player in global digital innovation.

Here, a steady stream of technological innovations are emerging, from the early days of emails and web browsing to the cutting-edge technologies represented by DeepSeek and the dynamic evolution of social media.

Wu Jianping, an academician at the Chinese Academy of Engineering and headof the Zhongguancun Laboratory, pointed out that while China had introduced only one internet standard before 2005, it now contributes to over 200 worldwide. Such strides illustrate the country’s concerted push toward high-level technological self-reliance – a journey marked by both persistence and determination.

Beyond the digital realm, China is makingsignificant inroads in aerospace, new energy, and other high-tech sectors. It has transitioned from being a follower to standing shoulder-to-shoulder with global leaders, and in some areas, even taking the lead. Wu attributed these achievements to a dynamic ecosystem of policy reforms and talent cultivation that encourages creativity and technical expertise at every level.

Amid intensifying international competition, collaborative research and the integration of new technologies with traditional industries are central to China’s high-quality economic development.

Mei Linhai, a researcher at China’s State Key Laboratory of Cognitive Intelligence, remarked that the age of AI calls for continuous exploration. “In this era, everyone is an innovator. Only by persistently pushing the boundaries can we remain at the forefront of both technological and industrial development,” Mei observed.

In the field of general-purpose AI, Mei emphasized that independent innovation is paramount. He advocates for a self-driven industrial ecosystem that leveragesbreakthrough technologies to boost productivity and unlock new possibilities, Mei said.

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Chinese democracy in action:a village bench meeting shapes national law

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By Wei Zhezhe, Liu Botong, People’s Daily

In a modest corner of Jiangmen, south China’s Guangdong province, residents of Weidong village are experiencing firsthand a form of democracy that starts at the grassroots level and reverberates all the way to Beijing.

Wu Tengxin, a local villager who relies on a scooter for daily mobility after contracting polio, recalls a time when the village’s public spaces were ill-equipped for people with disabilities. Now, thanks to a simple suggestion made during a meeting, his everyday life has changed.

In November 2022, a team from a local legislative outreach office – a branch of China’sNational People’s Congress (NPC) – visited Weidong village and set up a “bench-style meeting.” Residents, including the elderly and those with disabilities, gathered to voice their concerns about inadequate accessibility.

Amid the conversation, Wu offered a straightforward proposal: “I hope rural accessible facilities can be improved to make mobility easier for people with disabilities and the elderly.” His words were relayed verbatim to lawmakers.

The response was swift. On June 28, 2023, at the third session of the 14th NPC Standing Committee, legislators passed a law on building a barrier-free living environment. The law stipulates that improvements”shall align with social and economic development levels, coordinate urban and rural progress, and gradually narrow the gap in infrastructure between urban and rural areas.”

Today, Wu observes that the village’s main roads and public squares have been upgraded with accessibility features that make getting around considerably easier.

This episode illustrates what Chinese officials call “whole-process people’s democracy” – a system where citizen input is woven into every stage of policy development.

Jilie Ziri, head of Abuluoha village in Butuo county, southwest China’s Sichuan province, remarked that for young generations in China, democracy has become a lived experience. “Villagers are the masters of village affairs,” he said, emphasizing how active villager participation has injected new vitality into local governance.

Experts point to consultative democracy as a cornerstone of this process. Tao Kaiyuan, vice chairman of the Central Committee of the China Association for Promoting Democracy and vice president of the Supreme People’s Court, underscores the important role of the Chinese People’s Political Consultative Conference, whose members hail from every stratum of society and bring a wealth of expertise and connections.

Their regular forums, field research, and public consultations have created robust channels for citizens to contribute ideas and forge consensus.”This approach gathers collective wisdom and transforms public voices into policy,” Tao said.

Another crucial manifestation is the effectiveness of China’s political party system. Under the leadership of the Communist Party of China, Chinese democratic parties actively fulfill their duties, offering recommendations that often translate into concrete policy decisions. This integrated approach demonstrates the unique strengths of China’s political system and the advantages of whole-process people’s democracy.

Tao emphasized that whole-process people’s democracyhas evolved into an efficient and dynamic democratic practice – one that not only reflects the essence of socialist democracy but also presents a pioneering model of political civilization, contributing Chinese wisdom and solutions to global governance and democratic development.

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Chinese modernization: blueprint for global progress

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By He Yin, People’s Daily

At China’s recent annual “two sessions,” Chinese modernization once again captured global attention. International observers are closely following a range of new measures designed not only to accelerate Chinese domestic transformation but also to unlock fresh opportunities for global development.

They believe that Chinese modernization, built on a foundation of openness and cooperation, will continue to yield global benefits with each new milestone.

Today, China stands as a formidable force in the global economy – accounting for around 18 percent of the global economy and nearly 30 percent of world manufacturing output. Year after year, the nation has contributed about 30 percent to global economic growth. With import and export records with almost all countries and regions designated in the United Nations Statistics Division, the country is a major trading partner for more than 150 countries and regions. In 2024, its exports to over 160 countries and regions saw growth.

Often hailed as the “world’s largest developing country,”the “second-largest economy,””world’s factory,””global market,” and “innovation powerhouse,” China is increasingly viewed as a beacon of stability and progress.

In recent years, high-profile events such as the seventh China International Import Expo – where intended deals exceeded $80 billion – and the establishment of over 1.239 million foreign-invested enterprises have reinforced the nation’s reputation as a vast, dynamic market.

Meanwhile, policies encouraging Chinese companies to “go global” have seen a steady stream of new technologies, goods, and services permeate international markets, knitting the country ever tighter into global value chains and bolstering its commitment to win-win cooperation.

The influence of Chinese modernization is evident far beyond its borders. In the Central African Republic, President Faustin-Archange Touadera has repeatedly screened China’s political documentary Carry the Reform Through to the End for cabinet discussions, while officialsin Uzbekistan are adapting China’s poverty-reduction experience to suit their national context. These moves challenge the assumption that modernization must follow Western models, suggesting that China’s alternative pathway offers a viable route to development.

Beyond economic growth, Chinese modernization is increasingly celebrated for its potential to foster win-win cooperation and shared prosperity.

Under the Belt and Road Initiative (BRI), for example, Kazakhstan secured its first maritime access and Laos launched its first modern railway. Support from the Global Development and South-South Cooperation Fund has propelled over 160 projects, benefiting more than 30 million people. Moreover, China has given all the least developed countries with which it has diplomatic relations zero-tariff treatment for 100 percent tariff lines, signaling its commitment to an open and inclusive global economy.

China’s modernization agenda also tackles global challenges head on. In response to global environmental risks, China advocates for building a community of all life on the Earth. To bridge the digital and AI divide, it has launched the AI Capacity-Building Action Plan for Good and for All to ensure that technological advancements benefit every corner of the globe.

On the security front, China continues to promote dialogue and reconciliation in conflict zones while engaging in multilateral security collaborations, reinforcing its reputation as a nation committed to peace and stability.

By proposing initiatives such as the Global Development Initiative, the Global Security Initiative, and the Global Civilizations Initiative, China is not just charting its own course toward modernization but championing an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization – one that seeks to ensure that no nation is left behind on the path to prosperity.

The global appeal of Chinese modernization is far from accidental. Decades of reform and opening up have accelerated its development while enabling the country to contribute to global governance. On the international stage, it has taken on a leadership role – actively shaping global norms, building a community with a shared future for mankind, and advancing world peace and development. By sharing its successful experiences and technological advancements, the country seeks to help other developing countries chart their own courses toward progress.

With over 1.4 billion people engaged in this modernization journey – a number that surpasses the total population of all developed countries combined – China’s approach is redefining the global modernization landscape. For China, modernization is not solely a national endeavor but a blueprint for global progress – a vision that promises a more inclusive future for all.

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