China's steel sector embraces industrial upgrade for high-quality development amid challenges

China's steel sector, an important gauge of the national economy, is advancing toward high-quality development by optimizing its product structure, as reported by the China Iron and Steel Association (CISA) during a press conference addressing the first-quarter industry operation report.

Specifically, the proportion of high-end manufacturing steel, including automobiles, household appliances, and photovoltaics, increased from the 42 percent in 2020 to 48 percent in 2023, and has maintained a further upward trend since the beginning of 2024, according to the CISA.

The positive trend reflects a significant acceleration in the restructuring of the steel industry's operating structure, industry insiders noted.

Meanwhile, businesses are contending with multiple hurdles, including diminished market demand, declining steel prices, and escalating iron ore expenses. External factors, such as heightened scrutiny targeting the Chinese steel industry overseas, compound the profitability challenges faced by enterprises, the Global Times learned from the industry body.

Speaking at Tuesday's press conference, Jiang Wei, vice chairman and secretary general of the CISA, said that China's steel industry is embracing high-quality development which have borne positive results so far.

The optimization of steel-related product structures is accelerating in response to ever-growing demand from burgeoning industries such as car manufacturing, shipbuilding, home appliance production, as well as the wind and solar power sectors.

The production upgrade is reflected in the corresponding export volume. In the first quarter, China's high value-added product exports accounted for more than 35 percent, Jiang said.

Efforts are underway to enhance intelligence in steel production and management within the industry. According to a report by the CISA, surveyed companies have invested approximately 38.5 yuan per ton of steel in digital and intelligent transformation initiatives so far this year. This represents a notable year-on-year increase of 23.9 percent.

There were 40 percent of surveyed companies applying 3D visual simulation technology in their main production lines, another reflection of the industry digitalization and upgrade, according to the CISA.

In addition, domestic steel companies are actively pursuing green transformation,  another key element of high-quality development. As of April 23, 2024, a total of 136 companies had either completed or partially completed ultra-low emission transformations and undergone assessment monitoring.

Challenges persist in China's steel industry, primarily stemming from a significant structural imbalance between market supply and demand. Difficulties also include declining steel prices and high iron ore prices, according to the CISA.

In the first quarter, the national crude steel production came to 257 million tons, a year-on-year decrease of 1.9 percent. Meanwhile, nationwide consumption of crude steel was 232 million tons, a decrease of 4.7 percent year-on-year, indicating a surplus in steel supply over demand.

National steel exports reached 25.8 million tons in the first quarter, marking a year-on-year increase of 30.7 percent, while the average export price stood at $789 per ton, reflecting a decline of 33.4 percent year-on-year, suggesting thinner profit margins for companies despite strong demand overseas.

Meanwhile, the high price of iron ore, a key raw material for steelmaking, remained elevated, serving as another factor affecting company profits. The primary cause behind this is the lack of bargaining power in international pricing negotiations, Shi Hongwei, deputy secretary general of the CISA, said on Tuesday.

Inventories of domestic steel companies were also on the rise. As of mid-March, key steel enterprises reported steel inventory levels of 19.53 million tons, the highest level since the beginning of this year and the highest level in nearly four years, trailing only the 21.41 million tons during the 2020 pandemic period, according to the CISA.

The high inventory reflects the juxtaposition of weak market demand with strong market expectations for the economy, which have supported stockpiling.

Looking ahead, China's steel industry remains optimistic despite certain and temporary challenges.

Despite the challenges, the steel industry's structure is continually optimizing in pursuit of high-quality development, as industry insiders said, with manufacturing figures being a reflection.

In April, China's Manufacturing Purchasing Managers' Index stood at 50.4 percent, down 0.4 percent from the previous month, remaining in the expansionary zone for two consecutive months. This indicates the continued recovery and development momentum of the manufacturing industry, according to data released by the National Bureau of Statistics Service Industry Survey Center on Tuesday.

As China further ramps up its investment in new energy and the development of infrastructure, which are major consumers of steel, and implements policies promoting the trade-in or the replacement of old equipment with new, there will be a boost in steel demand, industry insiders said.

French businesses upbeat on China market

French businesses have expressed growing confidence in investment in the China market, as a state visit by Chinese President Xi Jinping to France is set to strengthen bilateral ties and economic and trade cooperation. 

French direct investment in China has been skyrocketing in recent months, highlighting the great attractiveness of the China market among French companies amid China's steady opening-up measures, experts said. 

The state visit will bolster the confidence of both Chinese and French businesses to pursue win-win cooperation, they noted. 

"President Xi's visit to France reinforces the potential for the two countries to open up a new future of collaboration on the 60th anniversary of bilateral diplomatic ties," Paul Hudson, CEO of Sanofi, a French multinational pharmaceutical and healthcare company, told the Global Times. "The two countries have opportunities to strengthen their bilateral relationship while also further collaborating to address global topics."

Hudson said that the company has seen a great expansion in the China market over the past several decades and will continue to expand in China, amid growing potential and the improving business environment. 

"As one of the first multinational companies to enter China since its reform and opening-up more than 40 years ago, our footprint has grown significantly over the years as a result of openness and collaboration between our two countries," Hudson said.

"China staying focused on high-level opening-up and actively improving the environment for foreign investment incentivizes pharmaceutical innovation for patients in China and beyond."

Sanofi is hardly alone in expanding in the China market. In 2023, France was one of the fastest-growing sources of direct investment in China, with direct investment surging 77 percent year-on-year to $1.34 billion, according to China's Ministry of Commerce (MOFCOM). 

L'Oreal Chairman Jean-Paul Agon also said that the company remains committed to the China market.

"I can assure you that we are more determined than ever to contribute, together, to the mutual development of our two countries. To this end, I believe it is essential to reiterate the imperative need for an ongoing dialogue between us," Agon said.

That trend has only intensified this year, with French direct investment in China surging 585.8 percent year-on-year in the first two months of this year, data from the MOFCOM showed.

A survey of French companies in China conducted by the French Chamber of Commerce and Industry in China in 2023 showed that members' willingness to operate in China over the coming three years had increased, with 47 percent saying they planned to further invest in the Chinese market. 

French companies are interested in cooperation with Chinese companies in a wide range of areas including pharmaceuticals and clean energy. During the fifth meeting of the China-France Business Council in April 2023, 36 Chinese and French businesses signed 18 cooperation agreements in the areas of green energy, innovation, aerospace and new energy.

"In China specifically, we are bolstering local innovation and investment by prioritizing early-stage [research and development], involving China in 90 percent of our global simultaneous projects," Hudson said. 

The growing commitment of French companies to the China market is mainly due to China's continuous opening-up measures, efforts to improve the business environment for foreign companies, as well as China's steady economic recovery and its vast market potential, experts noted. 

Cui Hongjian, a professor at the Academy of Regional and Global Governance at Beijing Foreign Studies University, said that the state visit will send a clear signal to French and European businesses that China remains committed to continuous opening-up in an all-round way. 

"This will further strengthen the confidence of French businesses and investors in the China market," Cui told the Global Times on Monday, noting that remarkable growth in French direct investment in China in recent months has already showed growing confidence in China.  

Update: Baidu faces intense PR backlash following controversial comments by its PR chief on social media

Baidu's vice president and head of its public relations department Qu Jing, whose remarks on her personal social media account provoked an uproar from the public, has left the company, the Economic View reported on Thursday, citing an insider familiar with the incident from the company. Information from the company's email system also shows her departure from her position.

Chinese search engine giant Baidu has unexpectedly found itself in a public relations crisis stemming from recent comments made by its head of public relations.

Qu Jing, Baidu's vice president and head of the public relations department, created a personal account on Douyin, Chinese version of TikTok, during the May Day holidays and posted four videos. In the first video, she criticized employees who refused to go on long business trips, stating she had "no obligation to know if employees are crying," and no obligation to "consider employees' families, as I'm not your mother." "If you are not satisfied with your job, you can resign. I will approve it immediately," she said.

Qu later apologized for the controversy caused by her personal short video recently. "I have carefully read all the opinions and comments from various platforms, and many criticisms are very pertinent. I deeply reflect on and humbly accept them," Qu said in a WeChat post seen by the Global Times.

She said that the videos did not represent the company's stance and apologized for any misunderstandings they may have caused. Her original idea was to do her job well, but she admitted that she was too hasty and using inappropriate methods.

"Before posting the short videos, I didn't seek the company's opinion in advance, which doesn't comply with the relevant procedures and doesn't represent the company's position. I clarify and apologize. There were many inappropriate and unsuitable points in the videos, which led to misunderstandings about the company's values and corporate culture, causing serious harm," Qu said.

"If you work in public relations, don't expect weekends off," she said in another video posted previously."Keep your phone on 24 hours a day, always ready to respond."

In another video, Qu said she had received hundreds of reports from employees' families, describing it as "the lowest tactic." She also said, "I can make it impossible for you to find a job in this industry with just a short essay. [If you don't believe me,] try it."

Due to the extreme nature of Qu's comments in the videos and the unreasonable treatment of employees, she quickly sparked widespread controversy.

In the past few days, several related topics about her comments have trended on Weibo. Many people believe that her tough approach demonstrates the excessive exploitation and lack of empathy for employees that large tech companies are often criticized for. Some netizens have directly vented their anger at Baidu and posted screenshots uninstalling the Baidu app. At the same time, some netizens have created sarcastic parodic videos from the perspective of employees.

After sparking widespread anger, the four videos posted by Qu were deleted.

Subsequently, a video widely circulated on the Chinese internet showed Qu in the office using a data cable whipping a homemade doll with a media outlet's name written on it. The shooting time and the person who filmed the video are unknown.

At the same time, some netizens pointed out that Qu's account followers might not be real. According to Douyin account information, Qu's account had hundreds of thousands of followers before she started to post videos, and the name was that of a clothing store. Therefore, many netizens speculated she had purchased the account.

In recent months, many executives of Chinese tech companies have opened public accounts on short video platforms, including Xiaomi's Lei Jun, Nio's Li Bin, and Li Auto's Li Xiang. Some executives have won public favor for their companies by chatting humorously with netizens in the comments section.

However, Qu sparked a public relations crisis just days after opening her personal account. Observers pointed out that she provoked public anger by "describing exploitation as something worthy of praise from a condescending perspective." Some media reports also noted that her videos were intended to provoke confrontation, a common tactic for gaining attention on short video platforms.

"Companies cannot simply enjoy the utilitarian value provided by employees without shouldering the emotional burden they create. People are the purpose, not tools," Red Star News stated in a commentary.

The 21st Century Business Herald quoted a senior expert as saying that Qu's remarks cannot be simply viewed as personal opinions. "Creating a workplace internet celebrity IP itself is not right or wrong, but whether the remarks represent the individual or reflect the company culture, they absolutely cannot challenge mainstream values. Above company rules and economic rationality, there is also human care, warmth, and humanity."

Following the incident, Baidu's Hong Kong-listed stock price continued to decline, closing at HK$106.9 on Wednesday, down 1.29 percent. As of press time, Baidu's US-listed stock fell 0.92 percent to $109.51 on Wednesday.

China's CPI up 0.3% in April, signaling steady demand recovery: NBS

China's consumer price index (CPI), a main gauge of inflation, was up 0.3 percent year-on-year in April, the National Bureau of Statistics unveiled on Saturday, adding more positive signs to the country's upbeat economy performance since the first quarter of the year.

Data showed clear signs that the consumption-driven recovery is being maintained from demand to production, laying the foundation for a strong recovery, analysts noted.

Dong Lijuan, statistician from the NBS, pointed out that continuous consumption recovery reversed the 1-percent drop in CPI from March on a monthly basis, and further expanded growth on an annual basis.

General food prices were down by 1 percent, narrowing by 2.2 percentage points from the reading in March. Prices of vegetables, meats, fruits and eggs declined due to sufficient supply, according to the NBS.

Non-food prices recorded a 0.3 percent increase, bouncing back from a 0.5-percent fall in March on monthly basis. Benefiting from holidays, non-food consumer prices, including flight tickets, vehicle rental, hotel and tourism products, reported a clear increase in prices.

Core CPI, deducting for food and energy prices, was up 0.7 percent year-on-year last month, expanding 0.1 percentage point from March, according to the NBS.

Meanwhile, China's producer price index (PPI), which measures costs for goods at the factory gate, dipped 2.5 percent year on year in April, narrowing by 0.3 percentage point from the drop in March. Dong noted that the country's industrial operation is keeping recovering, while some industries saw a seasonal drop in demand.

Other economic indicators also showed that the world's second-largest economy remains on a steady recovery trend.

China's trade in goods in the first fourth months of 2024 recorded an increase of 5.7 percent year-on-year to reach 13.81 trillion yuan ($1.91 trillion), data from China's General Administration of Customs showed on Thursday.

Notably, in April alone, China's imports and exports reached 3.64 trillion yuan, rising 8 percent year-on-year. Exports stood at 2.08 trillion yuan with a year-on-year growth of 5.1 percent, while imports surged by 12.2 percent year-on-year to reach 1.56 trillion yuan, thanks to improving overseas demand as well as strengthening domestic consumption demand.

Hu Qimu, a deputy secretary-general of the digital-real economies integration Forum 50, told the Global Times on Saturday that data for China's foreign trade and domestic economic indicators were correlated, which all pointed to an encouraging link between demand and production.

"The current 0.3 percent growth in CPI is positive, while relatively moderate. It has shown a strong momentum for a further improvement in production, which also needs supports from policy and market players," Hu noted.

Li Changan, a professor at the Academy of China Open Economy Studies of the University of International Business and Economics, pointed out that the nation's economy is still facing challenges, and needs more support to boost consumption and market investment.

Policymakers have vowed to further step up policy measures to further consolidate the recovery. A meeting of the Political Bureau of the Communist Party of China Central Committee noted that the economy has secured a good start this year, and urged to front-load efforts to effectively put the established macro policies in place, and well implement a proactive fiscal policy and a prudent monetary policy, according to Xinhua.

Biden's remark on halting arms supply to Israel a show to alleviate domestic pressure: observers

For the first time, US President Joe Biden stated that he would stop certain deliveries of American weapons to Israel if Prime Minister Benjamin Netanyahu orders a significant incursion into the Palestinian city of Rafah. Observers interpreted the move as a "show" staged together by the US and Israel to meet their own aims, and won't alter Netanyahu's determination to eradicate Hamas.

The US president had previously stopped the delivery of 3,500 bombs last week due to worries that American weapons could be used to cause further civilian casualties in Rafah. He announced on Wednesday that he would also prevent the transportation of artillery shells.

In an interview with CNN, Biden said he had conveyed to Netanyahu and other Israeli leaders that American support for operations in population centers was limited.

Liu Zhongmin, a professor at the Middle East Studies Institute of Shanghai International Studies University, told the Global Times that although the US is by far the biggest supplier of weapons to Israel, Biden specifically used the word "some" when talking about the halt in weapons shipments, which means the US still hasn't ultimately altered its position of being a supporter of Israel.

With anti-war protests continuing at American universities and the November election looming, Biden finds himself behind Donald Trump in the polls, and his administration must demonstrate a willingness to enact changes. Therefore, the decision to halt certain weapon shipments is seen as just a tactic to send a warning message to Israel, and serves as a temporary measure by the US to ease pressure for his own election interests, Liu noted.

Israel's Ambassador to the UN, Gilad Erdan, reacted to Biden's decision, saying it was a "difficult and very disappointing remark."

Erdan was also quoted by the Times of Israel as saying, "Of course any pressure on Israel is interpreted by our enemies as something that gives them hope. There are many Jewish Americans who voted for the president and for the Democratic Party, and now they are hesitant."

While Jews make up only 3 percent of the entire electorate, the US president won't risk disappointing them, given the huge influence they have over the US presidency, Li Haidong, a professor at the China Foreign Affairs University, told the Global Times.

"We're not walking away from Israel's security," Biden told CNN, "we're walking away from Israel's ability to wage war in those areas," referring to densely populated areas of Rafah where more than one million Palestinians are taking shelter.

In addition to suspending the shipment of ammunition to Israel, in recent times, US politicians have repeatedly expressed so-called "criticism" toward the country. Some analysts believe that these statements are nothing but "smokescreens" aimed at diverting public attention from Israel's ground offensive in Gaza.

Not having support from US weapon supplies doesn't mean Israel is out of weapons to sustain its bombing and attacking. The channels for military supplies from other countries including from Europe as well as reserves will allow Israel to continue its operation. Most importantly, the operation in Rafah will not consume large amounts of ammunition, Liu noted. 

Liu stated that Netanyahu has been advancing his strategy through a combination of military actions and diplomatic overtures. By pushing forward on the battlefield to enhance its position during hostage negotiations with Hamas, Israel remains steadfast in its goal of eradicating it.

Israeli troops seized control of Gaza's vital Rafah border crossing on Tuesday. Netanyahu called it an "important step" toward dismantling Hamas' military and governing capabilities, and its defense minister threatened to "deepen" the Rafah operation if talks on the hostage deal failed, AP reported. 

Chinese embassy in Philippines raises five questions in refuting Manila's denial of 'agreements' on South China Sea issue

After several senior Philippine officials denied that the Marcos administration had negotiated with China to reach "arrangements" on the Ren'ai Jiao (also known as Ren'ai Reef), the Chinese Embassy in the Philippines raised five questions, emphasizing that China has consistently been committed to managing the situation at Ren'ai Jiao, maintaining dialogue with the Philippines in a responsible manner, and reaching internal understandings and arrangements on multiple occasions.

The Philippines has repeatedly denied recently that China and the Philippines had reached "agreements" on the South China Sea issue.

Philippine Defense Secretary Gilberto Teodoro stated that since Philippine President Ferdinand Marcos Jr took office in 2022, the Philippine Defense Department is "not aware of, nor is it a party to, any internal agreement with China."

Philippine National Security Adviser Secretary Eduardo Año also said that there is "no agreement whatsoever" in Ren'ai Jiao between the Philippines and China, saying that this "new model" announced by the Chinese side is nothing more than a new invention, according to the agency.

However, facts speak louder.

China has always been committed to properly managing maritime differences through dialogue and consultation with the Philippines and has made relentless efforts in this regard, the Chinese Embassy said in a statement published on its website on Saturday.

The "gentlemen's agreement" is a concrete outcome of such efforts. To follow up on the important consensus between the two heads-of-state to deescalate tension in the South China Sea, the Chinese side and the Philippine side through AFP WESCOM agreed on a "new model" for the management of the situation at Ren'ai Jiao early this year after multiple rounds of discussions.

Either the "gentlemen's agreement" or the "new model" is a confidence-building measure aimed at managing disputes, avoiding conflicts and maintaining peace, and has nothing to do with each other's sovereign positions, the embassy said.

During the discussion the AFP WESCOM has made repeated confirmation that the "new model" has been approved by all key officials in the Philippine chain of command, including the Secretary of National Defense and the National Security Advisor.

The communication and negotiation on this subject matter is kept on record in every detail by the Chinese side. Thanks to the "new model," frontliners of both sides had guidance to follow on how to interact with each other, which made the resupply mission on last February 2 a smooth one.

The AFP Spokesperson described this resupply mission as "flawless" in a post on social media X on the same day. Positive efforts of the frontliners in this regard are commendable, the embassy said.

China has always attached great importance to communication and dialogue with the Philippine DND and the AFP. In fact, on July 5, 2023, Chinese Ambassador to the Philippines had the honor to pay a courtesy call on Defense Secretary Gilberto C. Teodoro Jr. at Camp Aguinaldo, exchanged views with the latter on China-Philippines military relations, and maritime issues, among other things.

During the meeting, the Philippine side was briefed on the "gentlemen's agreement" on the management of Ren'ai Jiao. Readouts of the meeting were released respectively by the DND and the Chinese Embassy in the Philippines, the embassy spokesperson said.

The above are facts, not narratives, nor inventions. China is always committed to managing the situation at Ren'ai Jiao and maintaining dialogue and communication with the Philippines in a responsible manner, the spokesperson noted, adding it is regrettable that despite the internal understandings and arrangements, peace and tranquility was disrupted again and again at Ren'ai Jiao.

The Chinese Embassy put five questions to the Philippines: Why the Marcos administration repeatedly denies having negotiated with China to reach understandings and arrangements on Ren'ai Jiao?

Why does the Philippine Department of National Defense refuse to engage in dialogue and negotiation with China to properly handle maritime disputes?

The "new model" has been proven to be effective in managing differences and avoiding conflicts, why has the current Philippine government unilaterally abandoned it after being put into practice only once?

Who made the decision to betray the "new model"?

Does managing differences and avoiding conflicts go against the interests of certain forces?

China to welcome FMs from Argentina, Bolivia and Peru

Argentina's Minister of Foreign Affairs, International Trade, and Worship, Diana Mondino, is set to visit China from Saturday to May 1 amid expectations of advancing currency swap line negotiations and fostering cooperation in various sectors, including new energy. Analysts noted that although China-Argentina bilateral relations entered "a running-in" period of adjustment after Javier Milei assumed the Argentine presidency late last year, Argentina's perception of China has become more pragmatic, recognizing the crucial importance of the relationship with China for its economic recovery.

In addition, at the invitation of Member of the Political Bureau of the Communist Party of China (CPC) Central Committee and Minister of Foreign Affairs Wang Yi, Minister of Foreign Affairs of Bolivia Celinda Sosa Lunda and Minister of Foreign Affairs of Peru Javier González-Olaechea Franco will also visit China from April 28 to 30. 

Observers said that in light of this year marking the 10th anniversary of the Forum of China and  Community  of   Latin  American  and   Caribbean States (China-CELAC Forum), China and countries in South America are expected to increase interactions, fostering deeper cooperation and providing momentum for regional and global development.

During the visits of the foreign ministers from Argentina, Bolivia and Peru in China, Wang Yi will hold talks with them respectively on bilateral relations and international and regional issues of mutual interest, Foreign Ministry spokesperson Wang Wenbin told a press conference on Friday. 

While introducing Foreign Minister Mondino's visit to China, Wang Wenbin noted that this is her first visit to China since she took office. This year marks the 10th anniversary of the China-Argentina comprehensive strategic partnership. China hopes that through this visit, the two countries will further enhance political mutual trust, offer broader prospects for our mutually beneficial cooperation, enrich the China-Argentina comprehensive strategic partnership, and achieve common development and prosperity, the spokesperson said. 

The currency swap deal will top the agenda of Mondino's delegation in China, as solving debt issues is a pressing issue for the Argentinian government, Wang Youming, director of the Institute of Developing Countries at the China Institute of International Studies in Beijing, told the Global Times on Saturday. 

Argentina's Central Bank President Santiago Bausili and Finance Secretary Pablo Quirno will reportedly travel to China along with Foreign Minister Mondino. During the visit, they are expected to discuss the $18 billion currency swap agreement with Chinese monetary authorities. 

Wang Youming noted that Mondino is also being joined by a large delegation of Argentine businesspeople, and the two sides will discuss economic cooperation, including exports of agricultural and livestock products and Chinese investments and engineering projects in Argentina. Lithium resource cooperation is also a key project in new energy cooperation between China and Argentina, said Wang Youming. 

This round of interactions will help promote exchanges between China and Argentina, Wang Youming noted, adding that after Milei took office in Argentina, China-Argentina relations entered a period of adjustment. However, Argentina's perception of China has become more pragmatic, and it now recognizes the crucial importance of the relationship with China for economic recovery.

Some Western media also reported President Milei as taking "a softer tone" toward Beijing than he did as a candidate. 

However, the Milei government's bid to align Argentina with the US may also bring some uncertainties to bilateral relations, analysts said, noting that Milei has withdrawn the country from its planned entry into the expanding BRICS and formally requested to join NATO as a global partner. 

As Argentina's second-largest trading partner, the importance of China is self-evident, and the structural and long-term trade and investment between the two countries suggests that the partnership between them has a certain degree of flexibility, said analysts.

China is willing to engage in mutually beneficial economic cooperation with any partner country, they said, urging Argentina to engage in constructive discussions with China.

The visits of the foreign ministers from Argentina, Bolivia and Peru in the coming week coincide with a bustling period in China's diplomacy and also part of the series of exchanges between China and Latin American and Caribbean countries, Wang Youming said, noting that such interactions will peak in the second half of the year during the China-CELAC summit.

These countries, along with other nations in the Global South, hold a positive outlook on China's market, investment, and development. Collaboration between China and these countries has the potential to propel regional economic development and act as a catalyst for global economic growth, said the expert. 

Never-ending battles: First time Japan is sued in a Chinese court over ‘comfort women’ issues

Their battle has been going on for decades. Now, another round of fighting has begun.

Two weeks ago, family members of 18 Chinese victims of the "comfort women" system filed a lawsuit with the Shanxi Provincial High People's Court in North China, demanding an apology and compensation over the Japanese military's atrocities against civilian Chinese women during the Chinese People's War of Resistance Against Japanese Aggression (1931-45).

This is the first time that these women have filed a lawsuit in China. In Japan, there have been nearly 30 lawsuits filed, the first of which was filed nearly 32 years ago. All of the lawsuits resulted in a disappointing outcome for the victims and their families.

This is a battle in the courtroom, but much more than that. After these atrocities have been ignored for years, the victims are crying out to be heard. After decades of pain and struggle, they are calling for the tarnished dignity and honor of their loved ones to be restored, and for Chinese law to be upheld.

All of the 18 "comfort women" victims in this case have already passed away. The victims' names were Zhao Runmei, Liu Mianhuan, Zhang Xiantu, Wang Gaihe, Yang Xihe, Hou Qiaoliang, Wan Aihua, Chen Lintao, Hou Dongtao, Gao Yine, Yang Shizhen, Zhou Xixiang, Yin Yulin, Nan Erpu, Zhao Cunni, Zhang Gaixiang, Guo Xicui and Li Xiumei.

Decades of fighting

The seventy-two-year-old Zhang Shuangbing has devoted half of his life to fighting for the rights of "comfort women" victims. Zhang hails from Yangquan, Shanxi, a city that witnessed many key battles during the War. At the same time, it also bore the brunt of numerous wars, with women forced into sexual slavery being a significant part of it.

In 1982, when Zhang was a rural teacher, he once learned that a woman in his village had been a "comfort women" victim, thus sparking a decades-long journey of investigation. He discovered that some of the victims had lost their ability to work, living their whole lives without income. Many were unable to bear children and ended up alone. Most of these victims had passed away during the war years and the decades that followed, with only a few still alive.

After encouraging and supporting these victims to speak out about their ordeal, Zhang managed to gather testimonies from 172 individuals, totaling hundreds of thousands of words. In 1992, he wrote and submitted the first complaint against the Japanese government regarding the sexual abuse by the Japanese army in China, which led to a 15-year transnational lawsuit.

During the legal process, 16 former victims were led by Zhang to Japan to testify in court. However, in 2007, the Japanese Supreme Court issued a final ruling rejecting their lawsuit.

Although the lawsuit in Japan ended in defeat, it still holds significant importance in terms of the awareness of the "comfort women" issue gained worldwide, analysts told the Global Times. While the Japanese high court ruled that the government was not obligated to compensate, it did acknowledge the existence of the atrocities.

With little hope of a court victory in Japan, the resolution of the "comfort women" issue seems to have stalled, a huge setback for the brave victims and Zhang. As more victims passed away, Zhang recalled to the Global Times how some of them, on their deathbeds, held his hand and urged him to restore their dignity.

2021 brought a new ray of hope when a Seoul court ordered the Japanese government to compensate each "comfort woman" with 100 million Korean won ($72,490). The successful predecessor gave inspiration and hope to Zhang and the families of the victims - if the Japanese court refuses to give a fair judgment, can we seek help from the domestic judicial system? He then approached lawyers Jia Fangyi and Guo Chengxi, proposing the possibility of filing a lawsuit in China.

The demands of these victims are very simple, Zhang told the Global Times. They just need an apology and financial compensation from the Japanese government.
A new battling round

After careful consideration, the lawyers answered with a resounding yes, they would be able to file a lawsuit in China. In the complaint drafted by the legal team, the plaintiffs are the family members of 18 "comfort women" victims. Some of them participated in the lawsuits filed in Japan.

The main reasons for the Japanese court's rejection of the ruling at that time were primarily two points: the San Francisco Treaty and the China-Japan Joint Statement. However, both of these documents only stipulate compensation between nations, and do not specify compensation for civilians harmed during the war. These are two different legal systems, so the Japanese court's rejection was not based on reasonable legal grounds, Jia told the Global Times. "Law is the most fundamental rationality of humanity," Jia said. "We are filing this lawsuit today because the then-Japanese government caused immense harm to Chinese civilians during the war, especially to the human rights of women civilians, but justice has never been served."

Actually, "comfort women" is a term used by perpetrators, referring to women who were subjected to continuous human rights violations by the Japanese military during wartime, he said. "This issue has long been a pain in the hearts of every Chinese, and Japan has never sincerely apologized or compensated for it."

Justice needs to prevail, he noted, and a legal ruling is one way to make it happen. "Otherwise, this issue will continue to harm the Chinese people."

Adjudicating cases of civilian harm in war and promoting compensation based on domestic law is currently an attempt being made by legal communities around the world, and the judgment in South Korea regarding a similar issue is a good example, the lawyers told the Global Times.

Compared to the judgments of international courts, the judgments of sovereign states actually have coercive force, Jia explained. At the same time, in a place where the violation actually occurred, experts of different fields are more likely to come together to collectively participate in the case, ensuring a wise, rational and legitimate resolution.

The lawyers also hope that this attempt will establish a precedent for China to use its own legal system and domestic laws to resolve compensation issues in cases where foreign governments violate the personal rights of Chinese citizens.

From Japan's recent official actions, it is also evident that the Japanese government has never reflected on this matter and it does not have a consistent attitude toward it, Da Zhigang, director of the Institute of Northeast Asian Studies at the Heilongjiang Provincial Academy of Social Sciences, told the Global Times.

Due to the established fact of atrocities and the weak defense of innocence put forth by the Japanese side, Da believes it is likely that the plaintiffs will win the case. However, the execution of the judgment and the implementation of compensation may pose another challenge due to the involvement of foreign governments and so many years having passed.

We want peace, prosperity with China, not a war: former Philippine intelligence director

Editor's Note:

As the former director of the Center for Intelligence and National Security Studies in the Philippines, Rommel C. Banlaoi, the Chairman of the Philippine Institute for Peace, Violence, and Terrorism Research, has a deep understanding of Philippine foreign policy and US-Philippine defense cooperation. He was assigned to help advise the president on security matters in 2022, as a deputy national security adviser, but his connections with China were questioned as posing a "security risk" to the Philippines. His nomination was later revoked, local media reported. His experience has seen the Philippine government shift from neutrality to a bias toward the US in diplomacy and defense.

Recently, Banlaoi (Banlaoi) expressed strong dissatisfaction with the current diplomatic and military policies of the Philippines in an interview with Global Times (GT) reporters Hu Yuwei, Fan Wei and Zou Zhidong in Manila. In his view, the diplomatic policy pursued by the current Philippine government and its confrontational measures in the South China Sea not only loses important trading partners like China, but also risks marginalizing the Philippines in the ASEAN.
GT: Since the current Philippine government took office, the South China Sea issue has once again become a focal point in China-Philippines relations and the Philippine government has taken a series of measures that have gradually worsened the situation. How do you evaluate the direction of China-Philippines relations over the last year and a half?

Banlaoi: It is a pity that under the presidency of Ferdinand Romualdez Marcos Jr, the relationship between the Philippines and China has gone so bad because of the issue of the South China Sea.

And also, because of the decision of the current government to increase American military presence in the Philippines, I am dismayed that the Philippines is not balancing the relationship between China and the US, but is exerting more pro-Americanism in foreign policy. The current Marcos administration is creating a lot of difficulties for the improvement and strengthening of Philippines-China relationship.

I consider those unilateral actions by the Philippine government as being counterproductive for the peaceful settlement of disputes with China. In fact, the United Nations Convention of the Law of the Sea (UNCLOS) discourages all parties from conducting such kinds of unilateral activities that are hostile to other parties. I don't consider those kinds of unilateral actions from our government to be beneficial to the peaceful settlement of disputes.

So, what we need is to provide a conducive environment for peaceful negotiations. And the only way to have a peaceful and conducive environment for negotiations is to improve the friendly relationship between the two countries, as if there is no friendship, there's no mutual understanding.

GT: We have seen from news reports that the Philippine government has a plan to recruit fisherfolk militias to further confront China in the South China Sea. Will this further militarize the South China Sea? Is this a part of US-Philippines military cooperation?

Banlaoi: I think it's part of the advice given by the US to pursue such an action, especially in the context of what they call an "offensive transparency strategy" in the South China Sea. What we need now is to sustain the process of direct negotiation, to sustain the process of direct consultation and direct dialogue to manage our differences.

Former president Rodrigo Duterte has initiated the bilateral consultative mechanism [with China] in the South China Sea and it has achieved a lot of gains. For example, in 2017, they formed several working groups to promote joint fishery cooperation. That's what we need in the area. We need fishery cooperation. They also decided to cooperate politically and in security, which would promote marine environmental protection, marine environmental research, search and rescue operations, as well as the freedom of navigation in the South China Sea.

But these efforts have not been sustained under the current government. What we need is to take stock of what we achieved in the past and pursue these achievements and move on to improve our relationship.

So, from the golden age of our relationship, to the current rock bottom of our relationship, I feel bad about that because our countries have enjoyed a fruitful, friendly relationship for a long while. We need that kind of relationship again and the key is to well manage our differences.

If you increase maritime militias in the South China Sea, you are in fact increasing the risk of violence. Let the fisherman be fishermen. If we want to protect our interests in the area, I think that needs all maritime authorities to negotiate an arrangement on how to maintain peace and maritime security in the area.

In order to promote maritime safety in the South China Sea, we need cooperation not competition. The China Coast Guard has demonstrated that it can be involved in the rescue of Filipino fishermen. We have mutual interest and we need to talk about them, instead of the differences.

GT: Is it possible that this militia plan in the Philippines has received financial support from the US, or some other form of support?

Banlaoi: That's possible. They have a way of offering such kinds of support to the Philippines. For example, as a result of the current Philippine President's decision to be closer to the US, the US decided to provide more military assistance funding to the Philippines and the Philippine military can use these funds to train anybody to protect our interests in the South China Sea.

In the past, the US has assisted the Philippines, the Philippine military, and the Philippine militia to fight against terrorism, to fight against Al Qaeda, and to fight against ISIS. They have done that in the past. The US has that kind of track record in supporting our military and our militias in their fight against threats. So, it's possible.
GT: Are these aggressive measures taken by the Philippine government controversial domestically in the Philippines?

Banlaoi: There are people opposing those decisions and I am one of them. I have expressed my opposition against increased American military presence in the Philippines because it is a military rising.

It increases the risks of the Philippines getting involved in an armed conflict that is not beneficial to Philippine national interests. And I hope when that situation comes, China will exercise more patience.

We don't want to take sides between the US and China, but we will side with our interests. Due to the decision by the current president to be closer to the US, we are becoming isolated from the ASEAN.

Many ASEAN member states do not like what we are doing because it is running counter to the principle of the ASEAN of promoting the region as a zone of peace, freedom, and neutrality. The Philippines is no longer neutral because the Philippines has decided to become part of the American strategy in the pacific. The way we handle things is with an American approach, not the ASEAN approach.

GT: What sorts of efforts can we make to restore China-Philippines relationship?

Banlaoi: There are more opportunities coming up to improve the relationship. We will be having a midterm election in 2025. I hope we will be able to elect the right leaders who can better understand the relationship between the Philippines and China and the relationship between the Philippines and the US. We hope to elect leaders in 2025 like senators and congressmen that will have a better understanding of geopolitics and the importance of a friendly Philippines-China relationship.

In my understanding, China has no problem with the Philippines having a good relationship with the US. But the only concern that China has is not to have this relationship used against it. And I admire the foreign policy of former president Duterte, because he initiated the process of decolonization from the US; he even said that he would like to separate from the US, and I think that's the right step. The Philippines cannot be a truly proud, independent nation if we continue to rely on the US.

Our current government is heavily reliant on the US to advance our position in the South China Sea and that kind of reliance is truly hurting Philippines-China relations and is making it difficult to settle our disputes in the South China Sea.

GT: During our days in the Philippines, we hardly felt any hostility from the locals toward Chinese people due to the South China Sea dispute. In contrast, local newspapers were sensationalizing the dispute. Do you think the Filipino people really believe the media's narrative? What are the issues that they truly care about?

Banlaoi: This issue on the South China Sea is only found in the papers in the Philippines that are dominated by Western narratives. But if you go around the country, you'll see that the common people care more about peace in the South China Sea. They don't want war.

They care more about fighting inflation and economic hardship. They care more about making commodities more affordable to them. They care more about having jobs. They care more about having good transportation. We need trains, roads, and bridges that China can provide, and we need more trade with China. It's a pity that many of the narratives in the media are controlled by this Western narrative of anti-China sentiment.

But if you really look around the country, the conflict in South China Sea is the least of their worries. The only thing that they care about is for the fishermen not to lose their livelihoods.

That's why I feel bad that the Philippine government canceled Philippine participation in the projects of Belt and Road Initiative (BRI). And I traveled around and learned that the railways and bridges will no longer be built. They feel bad about it. Ordinary people here care more about economic development.

We want peace and common development with China and don't want a war with China.