By Fan Fan, People’s Daily

Amid escalating conflicts in the Middle East, the Philippines has emerged as one of the first nations to face tangible repercussions. Recently, Philippine President Ferdinand Romualdez Marcos declared a nationwide energy emergency via executive order — the first such declaration globally since disruptions in the Strait of Hormuz.

Heavily reliant on imported energy, the Philippines confronts surging oil prices that exacerbate already high inflation and pose significant political risks. Transport groups across the country have repeatedly staged large-scale protests outside the presidential palace, denouncing soaring fuel costs and perceived governmental inaction..

What followed, however, was particularly noteworthy.

On the very day the energy emergency was declared, Marcos suddenly adopted an unexpectedly conciliatory stance toward China, stating that bilateral relations would “certainly be adjusted.” He voiced readiness to resume bilateral oil and gas cooperation, and even thanked China for its generous fertilizer assistance.

The conciliatory tone, however, proved short-lived. Within days, the Philippines reverted to familiar tactics: Marcos signed another executive order, unilaterally renaming 131 geographical features within China’s Nansha Islands in the South China Sea. At the same time, Philippine vessels to intruded into waters off Huangyan Island under the jurisdiction of the China Coast Guard, clearly attempting to stir up incidents and generate media hype.

This abrupt shift from gratitude to provocation reflects an ill-advised strategy of dual-track opportunism. Domestically, many Philippine politicians simultaneously court external allies that benefit from South China Sea tensions under the guise of national security, while remaining deeply dependent on economic cooperation with China. This contradictory approach becomes especially pronounced during regional tensions or domestic crises.

Shortly after taking office in 2022, Marcos signaled interest in resuming joint energy development talks with China to diversify the Philippines’ energy supply. As he stated, cooperation was essential — because the resources were needed.

Yet subsequent actions contradicted this rhetoric. While claiming to separate territorial disputes from trade arrangements, the Marcos administration has actively brought in extra-regional military forces, continuously stirred frictions in sensitive waters, and let anti-China rhetoric dominate public debate, misleading its people.

The administration’s pattern is clear: provoke China while expecting its assistance. Such duplicitous maneuvering has become routine in Manila’s recent policymaking.

But can this two-faced strategy succeed?

The ongoing energy crisis exposes the Philippines’ structural vulnerabilities: a fragile economy, excessive import dependence, and self-sabotaging entanglement in geopolitical tensions. These factors render the nation uniquely susceptible to global instability — a reality underscored by historical precedent. Philippine politicians should seriously reconsider what truly serves national interests and how to pursue an independent foreign policy.

Geography is immutable: neighbors cannot be relocated. Prudent statecraft demands constructive engagement. Provoking conflicts while seeking emergency aid is neither credible nor acceptable. If the Philippine truly cares about the well-being of its people and desires stable relations with China, it must fundamentally recalibrate its China strategy and cease provocative actions.

China takes note of the Philippines’ stated wish to stabilize relations and enhance dialogue, and hopes the Philippine side will meet China halfway by taking concrete actions to create the conditions needed for steady improvement in bilateral ties.

This energy emergency should serve as a sobering lesson: deliberately undermining cooperation with China while expecting its benefits is unsustainable. Those attempting to play both sides ultimately gain neither.

By Cui Qi, People’s Daily

At a recent round of the Superbike World Championship (WSBK) in Portugal, Chinese brand ZXMOTO, founded just two years ago by Zhang Xue, claimed victory in the World Supersport (WorldSSP) category, breaking a decades-long dominance by European, American and Japanese manufacturers. 

The achievement quickly captured significant international media attention and trended on social media. Many commentators hailed it as a “stunning upset” and the potential dawn of “a new era in superbike racing.”

Why has this breakthrough resonated so widely? A closer look at international coverage offers a clear answer. “Breaking stereotypes — this time China means business,” read a headline from an Italian automotive outlet.

ZXMOTO’s success, however, challenges these perceptions by demonstrating solid technological capability. The company independently develops all core components — from engines and frames to electronic control systems — achieving a localization rate exceeding 90%.

One innovation has drawn particular global attention: the engine, hailed as the “heart” of a motorcycle. 

For decades, Japanese and European brands maintained a near-impenetrable advantage in mid-to-large displacement engines, particularly four-cylinder and twin-cylinder designs, built upon years of accumulated expertise and patent protections.

Confronted with these technological barriers, ZXMOTO rose to the challenge, waging a “patent breakthrough campaign” over 18 months and ultimately conquering the “tough nut” of the three-cylinder liquid-cooled engine.

What distinguishes a three-cylinder engine? Simply put, while twin-cylinder engines offer strong initial acceleration but may lack sustained power, and four-cylinder engines provide smoother, sustained power but potentially less immediate thrust, a three-cylinder design effectively combines the strengths of both. It delivers robust acceleration and consistent power while offering a more compact, lightweight package, enhancing agility, especially in corners.

The championship-winning 820RR–RS model of ZXMOTO not only features higher power output, lighter weight and a lower center of gravity, but is priced at just 1/3 of comparable foreign models. It challenges the long-held assumption that high performance must come at a high price, making quality motorcycles more accessible to a broader range of consumers.

In fact, this is not the first time Chinese motorcycles have shone on the global stage. Chinese brands have previously secured race wins and even a season championship in lighter WSBK categories. Yet this latest breakthrough in the more technically competitive middleweight category carries even greater significance.

A Japanese motorcycle media outlet had earlier noted that, supported by passionate and dedicated engineers, China’s motorcycle industry is entering a new phase of global expansion.

For a long time, Chinese motorcycle exports were largely focused on low-end, high-volume markets, often struggling to gain traction in the premium segment. Today, brands like ZXMOTO are reigniting overseas consumer interest through improved technology and quality. Its products are now exported to markets including Italy, Spain, the United Kingdom, the United Arab Emirates and Russia.

As one British internet user observed, “The arrival of Chinese motorcycles in Western markets is good for the industry. Some say motorcycling as a hobby is fading, but China is showing real confidence in the recreational motorcycle market and offering products major brands no longer provide.”

In this sense, ZXMOTO acts as a “catfish” in the industry, stimulating competition, showcasing China’s technological strength, injecting new momentum into the global motorcycle sector, and offering global consumers more choices.

The journey of Chinese manufacturing is evolving from overcoming outdated stereotypes to gaining genuine recognition. Backed by sustained innovation and a complete industrial system, ZXMOTO’s success represents more than a single race win. It marks a broader transformation. Chinese manufacturing has entered a new era: one that delivers higher-quality products and adapts a more open and inclusive approach to meet the rising global expectations of the world.

By Wang Donghui, People’s Daily

The implementation of independent customs operations across Hainan Island has significantly accelerated the development of China’s Hainan Free Trade Port (FTP). A suite of preferential tax policies supports this momentum, designed to foster investment and industrial growth. However, these incentives raise a pertinent question: could the Hainan FTP become a tax haven?

While the zero-tariff policy offers substantial benefits and appeal, all preferential measures come with clear eligibility criteria. These advantages are not universally accessible; specific conditions must be met.

Take zero-tariff imported vehicles as an example. Rumors previously circulated online suggesting cars could be bought at half price in Hainan, prompting jokes about booking flights to buy cars. In reality, this duty-free policy applies only to transportation and tourism enterprises operating within the FTP. 

Qualifying companies must meet compliance requirements. Furthermore, these vehicles must be used for operational purposes: each journey must start or end within the FTP, and their cumulative time on the Chinese mainland cannot exceed 120 days annually.

Hainan residents enjoy access to a wide range of duty-free goods, but policies enforce an annual individual quota of 100,000 yuan ($14,583). Any purchase exceeding this annual quota or quantity limits is subject to import duties as required. Customs authorities have also emphasized that “quota sharing” and “proxy purchasing for profit” are illegal and will result in legal liability.

These eligibility thresholds prevent policy abuse and provide a clear answer to concerns: the Hainan FTP is neither designed to be nor will it become a tax haven.

What exactly is a tax haven? It generally refers to jurisdictions with extremely low or zero tax rates, lax regulation, and limited transparency, which primarily attract external capital seeking to shift profits and evade taxes. Hainan FTP, in terms of its development positioning, institutional design, and regulatory framework, does not fit this definition.

The core purpose of Hainan’s preferential tax policies is to serve the development of the real economy, attract high-end domestic and international production factors, and build a high-level platform for institutional opening up.

Widely noted policies, such as a reduced corporate income tax rate of 15 percent and a capped individual income tax rate of 15 percent, also come with well-defined conditions.

The 15 percent corporate income tax rate applies only to encouraged industries and requires that the enterprise’s actual management body be located within Hainan FTP, so it effectively prevents “shell companies” from exploiting policy loopholes. If a company is merely registered in the FTP but any of its production, operations, personnel, accounting, or assets are not based there, it will not be eligible for the preferential treatment.

Similarly, individual income tax incentives are targeted only at high-end and urgently needed talent genuinely required by the FTP. Eligible individuals must fall within specified talent categories, meet recognized standards, and be jointly certified by relevant authorities. In general, taxpayers must reside in the FTP for at least 183 days within a tax year, and their taxable income must be sourced from within the FTP.

In essence, both enterprises and individuals must demonstrate substantive operations and genuine qualifications to benefit. Such precisely targeted incentives unlock policy dividends while  safeguarding the fundamental principle of tax fairness.

Sound institutional design must be paired with rigorous enforcement. Hainan FTP has also established a “smart” regulatory system: leveraging big data and artificial intelligence, it can automatically flag abnormal cross-border capital flows and transactions involving high-risk regions; with blockchain technology, key transactions are fully traceable; and financial account information is exchanged with over 100 countries and regions.

The FTP has built a robust anti-money laundering system integrating institutional oversight, technology, and international cooperation, leaving minimal room for illegal activities. It also continuously strengthens international collaboration to enhance tax transparency and combat regulatory arbitrage.

Since its establishment, Hainan FTP has focused on four pillar industries, namely tourism, modern services, high-tech industries, and tropical high-efficiency agriculture, attracting enterprises and talent dedicated to rooting in the FTP and developing the real economy. The effectiveness of its policies is steadily translating into momentum for high-quality development.

On the 100th day since the launch of island-wide independent customs operations, a series of figures were released, highlighting the FTP’s strong performance. Offshore duty-free sales reached 15.62 billion yuan, up 27.64 percent year on year; 85,000 new market entities were registered, up 39.87 percent; total imports and exports exceeded 80 billion yuan, up 32.9 percent; and 223,000 visa-free inbound foreign visitors were recorded, an increase of 54 percent year-on-year.

An open and well-regulated Hainan FTP is not a place for opportunistic arbitrage, but a dynamic land where those committed to hard work can pursue their aspirations.