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China Central Bank to Offer Cheap Loans to Support Developers’ Bonds

Julie Zhu and Engen Tham wrote . . . . . . . . .

China’s central bank will offer cheap loans to financial firms for buying bonds issued by property developers, four people with direct knowledge of the matter said, the strongest policy support yet for the crisis-hit sector.

The People’s Bank of China (PBOC) hopes the loans will boost market sentiment toward the heavily indebted property sector, which has lurched from crisis to crisis over the past year, and rescue a number of private developers, said the people, who asked not to be named as they were not authorised to speak to the media.

China has stepped up support in recent weeks for the property sector, a pillar accounting for a quarter of the world’s second-biggest economy. Many developers defaulted on their debt obligations and were forced to halt construction.

The country’s biggest banks this week pledged at least $162 billion in credit to developers.

The PBOC loans, through its relending facility, are expected to be at much lower than the benchmark interest rate and would be implemented in the coming weeks, giving financial institutions more incentive to invest in private developers’ onshore bonds, two sources said.

Terms such as the interest rate on the loans were not immediately known.

The PBOC is also drafting a “white list” of good-quality and systemically important developers that would receive wider support from Beijing to improve their balance sheets, two of the sources said.

The central bank did not immediately respond to a request for comment on the planned measures.

At least three private developers – including Longfor Group Holdings Ltd, Midea Real Estate Holding Ltd and Seazen Holdings – received the green light this month to raise a total of 50 billion yuan ($7 billion) in debt.

If there were not enough demand from investors for such new bonds, the PBOC would likely step in to provide liquidity via the relending facility for the rest of the issuance, said one of the four people and another source.

Hong Kong’s Hang Seng Mainland Properties Index was up as much as 4.7% on Friday, adding 1 percentage point after Reuters reported the PBOC moves. China’s top developer by sales, Country Garden, was up 10%, CIFI Holdings was up more than 5% and Longfor nearly 4%.


Relending is a targeted policy tool the PBOC typically uses to make low-cost loans to banks to support the slowing economy, as the central bank faces limited room to cut interest rates on concerns about capital flight.

The PBOC in recent months has used the relending facility to support sectors including transport, logistics and tech innovation that were hard hit by the COVID-19 pandemic or are favoured by long-term state policies.

Beijing’s aggressive support for the property sector marks a reversal from a crackdown begun in 2020 on speculators and indebted developers in a broad push to reduce financial risks.

As a result of the crackdown, though, property sales and prices fell, developers defaulted on bonds and suspended construction. The construction halts have angered homeowners who have threatened to stop mortgage payments.

The PBOC also plans to provide 100 billion yuan ($14 billion) in M&A financing facilities to state-owned asset managers mainly for their acquisitions of real estate projects from troubled developers, two sources said.

Chinese media reported on Monday the central bank planned to provide 200 billion yuan in interest-free relending loans to commercial banks through the end of March for housing completions.

Among other recent official support, China’s interbank bond market regulator said this month it would widen a programme to support about 250 billion yuan ($35 billion) of debt offerings by private firms.

Much of Beijing’s previous support targeted state-owned developers.

Yi Huiman, chairman of China’s securities regulator, said on Monday the country must implement plans to improve the balance sheets of “good quality” developers.

Fitch Ratings said on Thursday private Chinese developers face higher liquidity risk, in terms of debt structure with greater short-term maturity pressure, than state-owned peers as banks and other creditors are becoming reluctant to lend.

Source : Reuters

China Economy: Avoiding ‘Middle-income Trap’ Is Key in 2023

China needs to get its economy back on track as soon as possible to avoid falling into the “middle-income trap”, and the deepening of market-oriented reforms is key, according to a Chinese government adviser.

And the growth rate of the world’s second-largest economy next year could potentially surpass 5 per cent, said Wang Yiming, vice-chairman of China Centre for International Economic Exchanges.

But for this to happen, coronavirus disruptions must be mitigated or ended; government policies to boost the economy must be effective; and reform and opening up must be expedited to improve market confidence, he said on Wednesday at an event organised by the Hong Kong Institute for Monetary and Financial Research.

“China’s current economic growth rate is lower than its potential. This may lead to some medium- to long-term impacts, which are rather structural in nature,” Wang warned.

“For example, there are changes in the micro scene, such as enterprise decisions becoming more short-term in nature, risky investment appetite being reduced, and household consumption becoming more prudent.

“It takes some time for all of these to be rectified.”

Wang’s comments add to the recent concerns that other government advisers have shared publicly, with some flagging the urgent need for China’s economic policymakers to realise the country’s full growth potential.

While the current recovery momentum is still weak, it is “very important” to bring the economic growth back to a reasonable range, explained Wang, who has also served as vice-president of the Development Research Centre of the State Council.

China’s economy grew by 3.9 per cent in the third quarter of this year, up from the 0.4 per cent growth in the second quarter. And economic growth over the first three quarters of the year stood at 3 per cent, missing market expectations.

Economists with investment banks Goldman Sachs and UBS expect China’s gross domestic product (GDP) to increase by 4.5 per cent in 2023. Those at Nomura were slightly more conservative at 4.3 per cent, and Morgan Stanley’s team was more optimistic with their 5 per cent projection.

If China aims to fulfil its target of reaching the per capita income level of a medium-developed country by 2035 – with a per capita GDP of at least US$20,000 – the annual GDP growth rate should be no less than 4.73 per cent, Wang said while noting that this could be “very difficult” to achieve due to the nation’s ageing population.

As China’s per capita GDP exceeded US$10,000 two years ago, it is in the process of moving from middle- to high-income, which is a special phase of instability, and the country may become caught in the middle-income trap if economic growth stagnates, he added.

To avoid being in such a perilous position, in which growth slows and a nation becomes unable to generate further economic momentum or grow rich, the key is to increase productivity and unleash the vitality of the market, Wang said.

“These are unlikely to be achieved simply through countercyclical adjustment policies. It must be achieved through deepening reform and opening up,” he added.

In particular, China should enhance market-oriented reforms in the realms of labour, land, capital, technology and data.

For example, reforming the hukou household registration system – which dictates access to public services based on the birthplace of the holder – by providing basic public services to rural migrants settling in cities would unleash the consumption potential of 300 million people, he said.

Reviving consumption is “particularly important” for China’s economic recovery, especially as dwindling external demand has suppressed exports and manufacturing investment, Wang said.

In the first 10 months of 2022, China’s retail sales increased by 0.6 per cent, but they fell by 0.5 per cent last month.

China’s exports also declined by 0.3 per cent in October compared with a year earlier, down from 5.7 per cent growth in September.

“In the past three years, we have taken many measures to protect the 160 million market players, and the recovery of production is obviously better than the recovery of consumption,” Wang said.

“So, if consumption is not activated and exports are falling, it will be difficult to maintain the balance between the supply and demand ends of the economy.”

Source : SCMP

网文“十问卫健委”, 質問中國衛生主管機構10條防疫問題


Source : 网络文章


国家发展和改革委员会主任 何立峰 . . . . . . . . .










(五)网络安全保障和数字经济治理水平持续提升。在全国人大的指导推动下,加快健全法律法规体系,强化网络安全机制、手段、能力建设,完善数字经济治理体系,提升网络风险防范能力,推动数字经济健康发展。一是法律和政策制度体系逐步健全。相继颁布实施《网络安全法》《电子商务法》《数据安全法》《个人信息保护法》,修改《反垄断法》,制定新就业形态劳动者权益保障政策。中央全面深化改革委员会第二十六次会议审议通过了《关于构建数据基础制度 更好发挥数据要素作用的意见》,初步构建了数据基础制度体系的“四梁八柱”。二是网络安全防护能力持续增强。建立网络安全监测预警和信息通报工作机制,持续加强网络安全态势感知、监测预警和应急处置能力。完善关键信息基础设施安全保护、数据安全保护和网络安全审查等制度,健全国家网络安全标准体系,完善数据安全和个人信息保护认证体系,确保国家网络安全、数据和个人隐私安全。基本建成国家、省、企业三级联动的工业互联网安全技术监测服务体系。三是数字经济治理能力持续提升。建立数字经济部际联席会议等跨部门协调机制,强化部门间协同监管。提升税收征管、银行保险业监管、通关监管、国资监管、数字经济监测和知识产权保护、反垄断、反不正当竞争、网络交易监管等领域的信息化水平,推动“智慧监管”。有序推进金融科技创新监管工具试点、资本市场金融科技创新试点、网络市场监管与服务示范区等工作,探索新型监管机制。




















Source : 中国人大

China Plans Property Rescue as Xi Surprises With Policy Shifts

China issued sweeping relaxation measures on property and Covid controls, the strongest signal yet that President Xi Jinping is now turning his attention on rescuing the economy.

Beijing issued its most extensive 16-point rescue package for the struggling real estate market, according to people familiar with the matter, marking a decisive effort to turn around an economy devastated by two years of Covid Zero curbs.

“It’s a meaningful easing,” said Larry Hu, head of China economics at Macquarie Group Ltd. “It seems that the room for policy change has widened on various fronts after the Party Congress, including for the two major headwinds to the Chinese economy: Covid Zero and property.”

The major policy shifts by Xi’s government will likely aid China’s growth outlook and add fuel to a market rally that sent a gauge of Chinese shares in Hong Kong up 17% in the past two weeks. It also ends a long period of policy paralysis before last month’s Communist Party congress when Xi jockeyed for a third term.

It’s a stark reversal from the gloom that descended over markets in late October, after Xi’s elevation of close allies to the highest rungs of power stoked concern that ideology would trump pragmatism for the most powerful Chinese leader since Mao Zedong. The Hang Seng China Enterprises Index has now erased losses suffered in the immediate wake of the party congress, swinging from one of the world’s worst-performing stock gauges to among the best.

The changes take place just before Xi is set to meet US President Joe Biden Monday on the sidelines of a Group of 20 summit, in the first in-person meeting between the two heads of state since the pandemic began. Treasury Secretary Janet Yellen will seek information on China’s Covid lockdown policies and the troubled property sector during a meeting with central bank Governor Yi Gang this week, according to senior Treasury Department officials.

Sweeping Measures

The People’s Bank of China and the China Banking and Insurance Regulatory Commission on Friday jointly issued a notice to financial institutions laying out plans to ensure the “stable and healthy development” of the property sector, said the people, asking not to be identified as the matter is private. Unlike previous piecemeal steps, the notice included 16 measures that range from addressing the liquidity crisis faced by developers to loosening down-payment requirements for homebuyers, the people said.

As part of the rescue plan, developers’ outstanding bank loans and trust borrowings due within the next six months can be extended for a year, while repayment on their bonds can also be extended or swapped through negotiations, the people added.

The central bank and the banking regulator didn’t immediately reply to requests for comment outside of working hours on Sunday.

Authorities on Friday also issued a set of measures to recalibrate their pandemic response, publicly outlining a 20-point playbook for officials aimed at reducing the economic and social impact of containing the virus.

The changes by no means signal the end of Covid Zero. A day after releasing the new parameters, officials were quick to clarify that Covid rules were being refined, not relaxed, and a strict attitude toward stamping out infections remains China’s guiding principle.

Global investors of Chinese property dollar bonds are still likely facing massive losses.

“The extreme pessimism in markets has finally led to a key policy change on the two biggest overhangs over the economy,” said Shen Meng, a director at Beijing-based investment bank Chanson & Co. “It’s still hard to say whether this is going to be a turning point for the economy though.”

Property Easing

Authorities have sought to defuse the property crisis with a raft of measures in the past few months, including cutting interest rates, urging major banks to extend 1 trillion yuan ($140 billion) of financing in the final months of the year, and offering special loans through policy banks to ensure property projects are delivered.

China also expanded a key financing support program designed for private firms including real estate companies to about 250 billion yuan last week, a move that could help developers sell more bonds and ease their liquidity woes.

One of the biggest policy changes in the latest notice is to allow a “temporary” easing of restrictions on bank lending to developers.

China began imposing caps on bank’s property lending in 2021, as authorities sought to tighten the reins on a bubble-prone industry and curb leverage at some of the nation’s largest developers. Banks not meeting the current restrictions will be given extra time to meet the requirement, said the people.

In addition, regulators encouraged lenders to negotiate with homebuyers on extending mortgage repayment, and emphasized that buyers’ credit scores will be protected. That may alleviate the risk of social unrest among homebuyers who have engaged in a widespread boycott on mortgage payments since July.

China’s $2.4 trillion new-home market remains fragile and property debt defaults have surged. Price declines in the existing-home market were the most extreme in almost eight years in September, according to the latest official data. At banks, the proportion of bad loans related to property has surged to 30%, according to Citigroup Inc. estimates.

Signs of easing property curbs and pandemic restrictions have led to a sharp rebound in China assets. A Bloomberg Intelligence gauge of Chinese developers’ stocks jumped a record 18% Friday, with Country Garden Holdings Co. surging 35%.

Still, the financial backstop is dwarfed by the looming debt maturities facing developers. China’s property sector has at least $292 billion of onshore and offshore borrowings coming due through the end of 2023. That includes $53.7 billion in borrowings this year, followed by $72.3 billion of maturities in the first quarter of next year.

“China developers are facing another peak in debt maturity next year, if regulators don’t make adjustments for property-related policies, developer liquidity will continue to deteriorate,” said Shen. “This will very likely trigger systemic financial risk.”

Source : BNN Bloomberg

The “Swiss Cheese Model” for Pandemic Defense

The “Swiss cheese model” of accident causation (more accurately called Emmental or Emmentaler cheese model [104]) originated with James T. Reason and Rob Lee in the 1990s (and was potentially influenced by other researchers).

As applied to COVID-19, this model recognizes the additive success of using multiple preventive interventions to reduce the risk of SARS-CoV-2 infection. No single slice of cheese (public health strategy) is perfect or sufficient at preventing the spread of SARS-CoV-2. Each slice has holes (inherent weaknesses or limitations) with variable number, size, and location over circumstances or time, which may allow viral transmission. SARS-CoV-2 infection occurs when multiple holes happen to align at the same time permitting a trajectory of successful transmission. When several interventions are used together and consistently and properly, the weaknesses in any one of them should be offset by the strengths of another.

The preventive interventions can be broken into personal and shared, although some interventions may be both. The order of the slices and holes in the illustration are not reflective of the degree of effectiveness of the interventions, given that the scenarios of transmission are variable and complex.

The black rats eating the slices of cheese represent factors undermining prevention efforts while the extra cheese represents a source of factors and opportunities favoring prevention efforts.

Source : BMC Infectious Disease

China Vows to Continue with ‘Dynamic-clearing’ COVID Strategy

China will persevere with its “dynamic-clearing” approach to COVID-19 cases as soon as they emerge, health officials said on Saturday, adding that measures must be implemented more precisely and meet the needs of vulnerable people.

The country’s strict COVID containment approach is still able to control the virus, despite the high transmissibility of COVID variants and asymptomatic carriers, an official from the China National Health Commission told a news conference.

China’s zero-COVID policy includes lockdowns, quarantining and rigorous testing, aimed at stopping the spread of the coronavirus.

Asked if there would be a change of policy in the near term, disease control official Hu Xiang said China’s measures are “completely correct, as well as the most economical and effective.”

“We should adhere to the principle of putting people and lives first, and the broader strategy of preventing imports from outside and internal rebounds,” she said.

The briefing followed a week in which markets surged on hope China would relax restrictions, buoyed further on Friday when a former disease control official told a banking conference that China would make “substantial” changes to COVID policy in the coming months.

Some areas had been guilty of unscientific “one-size-fits-all” lockdowns, the officials said, singling out the southwestern cities of Nanchong and Bijie, and Zhengzhou city officials in central Henan province for deliberately turning thousands of citizens’ health codes red.

“We attach great importance to these problems and are rectifying them,” said Tuo Jia, another disease control official.

Epidemic-hit areas must meet the needs of the elderly, sick, disabled, young and pregnant, Tuo said.

Officials said they would begin a push to increase vaccinations among the elderly, noting that while 86.35% of citizens aged 60 and over are fully vaccinated, fewer people 80 and older have had vaccinations and boosters.

China reported 3,837 new COVID-19 infections for Friday, of which 657 were symptomatic and 3,180 were asymptomatic, a slight decrease from the six-month-high of 4,045 new COVID-19 infections reported a day earlier.

Officials in Guangzhou said on Saturday the southern megacity is facing its most severe and complicated outbreak in three years of the virus, with 111 new locally transmitted symptomatic and 635 asymptomatic cases reported for a day earlier.

Source : Reuters

The Next Era of China Reform

Nie Riming wrote . . . . . . . . .

In a recent recap of the past decade of growth and development, the National Bureau of Statistics noted that China’s GDP rose from 54 trillion yuan ($8.6 trillion) in 2012 to 114 trillion yuan in 2021. Over the same period, China’s per capita GDP grew from 39,800 yuan to 81,000 yuan.

Globally, China has done especially well since the 2008 financial crisis. According to World Bank data, between 2012 and 2021, per capita GDP rose by an average of 23% in high-income countries, 59% in middle-income countries, 13% in the Eurozone, 42% in the United States, and 176% in China.

This track record of achievement is impressive and worthy of applause, but it shouldn’t blind us to the fact that there is still plenty of room for improvement. Even after decades of rapid growth, in non-inflation-adjusted dollar terms, Chinese per capita GDP in 2021 was still just 18% of the U.S., 30% of the Eurozone, and 32% of Japan. This gap indicates that the incomes and consumption levels of Chinese are still far from those enjoyed by people in high-income countries.

The recently concluded 20th National Congress of the Communist Party of China set its sights on these problems with a slate of development goals to be achieved by 2035, including bringing GDP per capita on par with that of a moderately developed country, improving disposable income per capita, and significantly increasing the percentage of Chinese in the middle of the income spectrum.

What does this mean in practice? In 2021, the average per capita GDP of countries in the Organisation for Economic Co-operation and Development (OECD) was $42,000. South Korea — a typical representative of a moderately developed country — had a per capita GDP of $35,000. China’s was roughly $12,500. Without accounting for exchange rates and assuming zero economic growth in the developed world, China would still need to sustain 9.8% average annual economic growth rates to reach the OECD average by 2035. It would need to grow by 8.1% annually to surpass Korea.

But after years of annual GDP increases in excess of 10%, China’s GDP growth is slowing down. Chinese GDP grew by 3.9% last quarter, beating expectations but lagging the initial national growth target of “about 5.5%” for 2022.

So, how can a country in China’s position reinvigorate sustainable, rapid growth? The good news is, there is still plenty of low-hanging fruit. Urbanization, for example, has the potential to be one of the most important drivers of China’s economic growth moving forward. Both labor productivity and average income will rise as more Chinese move from rural areas to more productive urban ones, driving overall economic growth and boosting incomes among the migrants.

According to the 2020 census, China had an urbanization rate, including towns, of 63.8%. About 41% of Chinese — 575 million people — live in one of the country’s 680 officially designated city districts. For comparison, roughly 86% of Americans live in one of that country’s “metropolitan statistical areas.”

While MSAs, defined as core urban areas with a population of at least 50,000, are not directly comparable to Chinese urban districts, it is clear China has a much lower level of urbanization than the United States. Closing this gap will require the creation and continued agglomeration of large cities. This can be achieved in two ways: first, through the migration of the agricultural population from the central and western regions to key cities in those respective areas or along the more developed coast; and second, population movement from small and medium-sized cities to large cities.

Worryingly, however, there are signs that some of these flows are slowing down. In particular, cross-province movement has slowed in the last decade in favor of intra-provincial migration. That, coupled with the rising number of east-to-west returnees suggests that barriers to mobility like the hukou system of household registration and other factors have made the coast less appealing or viable for migrants.

The developed eastern regions and large cities have long been the mainstay of new job creation in China. They absorb both migrant laborers and new college graduates from rural and urban areas. As these inflows slow down, the growth of new employment in Chinese cities has likewise dropped. According to a statistical bulletin on the development of human resources and social security, urban employment grew by 6 to 10 million annually prior to 2017. In 2021, it grew by just 480,000. Not coincidentally, youth unemployment has soared over the same period.

None of this is necessarily fatal to China’s ambitious development goals, but it does suggest the need to restart population agglomeration in metropolitan areas and spur migration toward developed eastern cities or key cities in central or western China. This will promote urbanization, put workers in a position to benefit from higher urban labor productivity, and help stabilize urban employment growth.

Healthy urbanization and sustained urban employment growth require certain preconditions. Chief among these are an open, internationalized economy and a unified internal market. After the reform period in the 1980s, the developed eastern seaboard became a migration destination precisely because it opened first. Over time, it established itself as a center in the global division of labor in manufacturing, which in turn created jobs, drove infrastructure investment and household income, and led to better public services and a more livable environment.

Opening to the outside world remains of utmost importance today. China is still a developing country in which domestic demand is low, especially for high value-added products. Current demand is not enough to absorb the non-agriculture employment that comes from rapid urbanization, and relying on domestic consumers will limit the potential of China’s technological progress and industrial upgrading. China still relies on consumers in other countries, in particular developed countries, to buy its goods and ensure the stable growth of its manufacturing industries.

At the same time, this continued commitment to opening and international competition will push Chinese companies to improve and invest in themselves, in part by forcing them to keep progressing in key indicators like labor productivity.

Another of the drivers of China’s economic growth over the past four decades has been the gradual creation of a large, unified market. But lingering flaws, including barriers to cross-regional mobility, have led to China’s big cities not being “big” enough and the economy not being concentrated enough. This, in turn, has exacerbated discrepancies across regions in GDP per capita. Improving China’s unified market by allowing the population to move freely in search of opportunity will help economic growth potential.

China has, rightly, set itself ambitious goals for the next decade and a half. Its ability to meet them will depend on continued reform, openness, and a willingness to let the Chinese people make their own decisions about where and how to live.

Source : Sixth Tone

China’s GDP Blackout Isn’t Fooling Anyone

wrote . . . . . . . . .

If you had paid a visit to China’s National Bureau of Statistics in the days following Xi Jinping’s election as general secretary of the Chinese Communist party in 2012, you would have found a cornucopia of economic data.

The number of people employed in the outdoor playground amusement equipment sector, natural gas exports from Guangdong to other provinces, the electricity balance of Inner Mongolia. You name it, they published it, along with more than 80,000 other time series.

But just one year later, those three series and thousands more were no longer updated. Skip to 2016, and more than half of all indicators published by the national and municipal statistics bureaus had been quietly discontinued. The disappearances have been truly remarkable.

Viewed against this backdrop, this week’s decision to indefinitely delay the publication of headline third-quarter indicators, including gross domestic product, looks less like a surprise: it continues a trend towards statistical opacity as China shifts from sustained high growth to more modest numbers. The blackout is just one of many signals that whatever number does finally emerge is unlikely to be high — and it may be treated with scepticism in any case.

Aside from the fact that one does not typically hide evidence of good performance, many of the more granular discontinued data series were previously used by analysts to check against China’s headline indicators, frequently finding the GDP figures overstating performance. We are left with increasingly unconventional indicators to gauge China’s current performance. It doesn’t look good.

In striking recent research, Luis Martinez, an economist at the University of Chicago, used data on night-time light intensity from satellite imagery to show that Chinese GDP growth over the past 20 years may have been about a third slower than reported each year, leaving its economy significantly smaller than the US, rather than slightly larger.

As for the real-time indicators we have grown familiar with during the pandemic, such as public transport use, road congestion and flight volumes, they offer a reason for China’s GDP figure no-show. With almost one in five of its over-80s still unvaccinated, compared to about 7 per cent in the US and virtually zero in the UK, China’s pursuit of zero-Covid is putting sustained downwards pressure on output. Closer to pre-pandemic activity levels than any other country in early 2021, China is now among the laggards, operating about a third lower than normal.

Based on the relationship between previous, published Chinese GDP figures and data collected by the Economist, the Federal Reserve Bank of New York and flight-tracking site Airportia, I estimate that China’s third-quarter growth figure will be about 3 per cent, significantly down on the 5.5 per cent target, and at the low end of recent forecasts. Apply Martinez’s satellite-based adjustment for exaggeration, and that becomes 2.7 per cent, just half of the target.

If reality falls so far short of expectations, we may see another swath of Chinese economic statistics vanish.

Source : FT

U.S. National Security Strategy 2022

October 12, 2022

From the earliest days of my Presidency, I have argued that our world is at an inflection point. How we respond to the tremendous challenges and the unprecedented opportunities we face today will determine the direction of our world and impact the security and prosperity of the American people for generations to come. The 2022 National Security Strategy outlines how my Administration will seize this decisive decade to advance America’s vital interests, position the United States to outmaneuver our geopolitical competitors, tackle shared challenges, and set our world firmly on a path toward a brighter and more hopeful tomorrow.

Around the world, the need for American leadership is as great as it has ever been. We are in the midst of a strategic competition to shape the future of the international order. Meanwhile, shared challenges that impact people everywhere demand increased global cooperation and nations stepping up to their responsibilities at a moment when this has become more difficult. In response, the United States will lead with our values, and we will work in lockstep with our allies and partners and with all those who share our interests. We will not leave our future vulnerable to the whims of those who do not share our vision for a world that is free, open, prosperous, and secure. As the world continues to navigate the lingering impacts of the pandemic and global economic uncertainty, there is no nation better positioned to lead with strength and purpose than the United States of America.

From the moment I took the oath of office, my Administration has focused on investing in America’s core strategic advantages. Our economy has added 10 million jobs and unemployment rates have reached near record lows. Manufacturing jobs have come racing back to the United States. We’re rebuilding our economy from the bottom up and the middle out.

We’ve made a generational investment to upgrade our Nation’s infrastructure and historic investments in innovation to sharpen our competitive edge for the future. Around the world, nations are seeing once again why it’s never a good bet to bet against the United States of America.

We have also reinvigorated America’s unmatched network of alliances and partnerships to uphold and strengthen the principles and institutions that have enabled so much stability, prosperity, and growth for the last 75 years. We have deepened our core alliances in Europe and the Indo-Pacific. NATO is stronger and more united than it has ever been, as we look to welcome two capable new allies in Finland and Sweden. We are doing more to connect our partners and strategies across regions through initiatives like our security partnership with Australia and the United Kingdom (AUKUS). And we are forging creative new ways to work in common cause with partners around issues of shared interest, as we are with the European Union, the Indo-Pacific Quad, the Indo-Pacific Economic Framework, and the Americas Partnership for Economic Prosperity.

These partnerships amplify our capacity to respond to shared challenges and take on the issues that directly impact billions of people’s lives. If parents cannot feed their children, nothing else matters. When countries are repeatedly ravaged by climate disasters, entire futures are wiped out. And as we have all experienced, when pandemic diseases proliferate and spread, they can worsen inequities and bring the entire world to a standstill. The United States will continue to prioritize leading the international response to these transnational challenges, together with our partners, even as we face down concerted efforts to remake the ways in which nations relate to one another.

In the contest for the future of our world, my Administration is clear-eyed about the scope and seriousness of this challenge. The People’s Republic of China harbors the intention and, increasingly, the capacity to reshape the international order in favor of one that tilts the global playing field to its benefit, even as the United States remains committed to managing the competition between our countries responsibly. Russia’s brutal and unprovoked war on its neighbor Ukraine has shattered peace in Europe and impacted stability everywhere, and its reckless nuclear threats endanger the global non-proliferation regime. Autocrats are working overtime to undermine democracy and export a model of governance marked by repression at home and coercion abroad.

These competitors mistakenly believe democracy is weaker than autocracy because they fail to understand that a nation’s power springs from its people. The United States is strong abroad because we are strong at home. Our economy is dynamic. Our people are resilient and creative.

Our military remains unmatched—and we will keep it that way. And it is our democracy that enables us to continually reimagine ourselves and renew our strength.

So, the United States will continue to defend democracy around the world, even as we continue to do the work at home to better live up to the idea of America enshrined in our founding documents. We will continue to invest in boosting American competitiveness globally, drawing dreamers and strivers from around the world. We will partner with any nation that shares our basic belief that the rules-based order must remain the foundation for global peace and prosperity. And we will continue to demonstrate how America’s enduring leadership to address the challenges of today and tomorrow, with vision and clarity, is the best way to deliver for the American people.

This is a 360-degree strategy grounded in the world as it is today, laying out the future we seek, and providing a roadmap for how we will achieve it. None of this will be easy or without setbacks. But I am more confident than ever that the United States has everything we need to win the competition for the 21st century. We emerge stronger from every crisis. There is nothing beyond our capacity. We can do this—for our future and for the world.

Read the full report . . . . .