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Qingdao manufacturers embrace dual standards to boost trade integration

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By Wang Pei, People’s Daily

On a factory floor in Qingdao Xihai’an (West Coast) New Area, east China’s Shandong province, workers at Qingdao YG-1 Tools Co., Ltd. carefully monitor grinding wheels as they move through a production line – machining, packaging, and preparing them for shipment.

“These grinding wheels are produced on the same production line for both export and domestic sale. For a company, walking with two legs allows you to go farther, ” said Jin Chengxun, head of the grinding wheel production department of the company.

Yet catering to both markets simultaneously poses significant challenges, particularly given the divergent technical standards between domestic and international buyers. The question arises: how can a single production line fulfill two distinct sets of rules?

In 2020, the Shandong Administration for Market Regulation introduced a policy encouraging companies to adopt unified production lines – employing the same processes and quality control protocols – to manufacture products that comply with both domestic and international standards. This policy formed a cornerstone of Qingdao’s broader efforts to integrate domestic and foreign trade. Seizing this opportunity, YG-1 Tools took steps to align with this dual-standard model.

“Recent shifts in global trade and consumer demand have prompted a reevaluation of market strategies. Overseas demand has slowed, while domestic industries – especially automotive and electrical manufacturing – are growing fast and creating strong demand for grinding and cutting wheels,” Jin said. “Shifting focus to the domestic market came at the right time.”

With exports to over 80 countries and regions and certification under the ISO 9001 quality management system, YG-1 Tools was well positioned for global business. However, transitioning to the domestic market proved unexpectedly difficult. The company encountered elevated defect rates – ranging from 15 to 20 percent – prompting customer complaints, product returns, and monthly domestic sales that struggled to exceed 400,000 yuan ($55,706). Rather thanexpanding, the company’s reputation within China was adversely affected.

The core issue lies in incompatible technical standards. “Take this grinding wheel, for example. The hardness scale runs from F to Z. A hardness level categorized as K by an overseas client might be evaluated as L or even M under Chinese standards,” explained Jin.

Faced with this challenge, the company considered whether adapting to the domestic market would require a complete overhaul of its production line — a move that would involve substantial financial investment. In January 2023, after becoming aware of the company’s challenges, the local market regulation authority in Qingdao Xihai’an (West Coast) New Area invited certification experts to work directly with the factory and explore alternative solutions.

“Industrial products are typically standardized, making it difficult to produce goods that satisfy multiple standards on a single line.But by making targeted adjustments to raw materials and processing methods, it’s possible to meet both without rebuilding the production system,” said Liu Hui, a senior staff member of the market regulation bureau of Qingdao Xihai’an (West Coast) New Area.

Following this guidance, the company’s technical team upgraded the grinding wheel formula to ensure compatibility with both domestic and international hardness criteria. Adjustments were made to raw material ratios, the mixing process, and kiln parameters, including temperature and firing time. Through repeated testing and fine-tuning, the company succeeded in aligning its products with dual standards.

“In addition to technical adjustments, we created a hardness conversion chart for quality inspectors, revised our factory inspection standards, overhauled the quality management system, and enhanced oversight of both in-process and final inspections,” Jin noted.

After obtaining an official certification to produce industrial products for both domestic and overseas markets, the company significantly reduced its defect rate to below one percent. It is now anapproved supplier for several major Chinese automobile manufacturers. Monthly sales have surged to over 1.2 million yuan, with domestic and international markets each contributing approximately 50 percent – and the domestic share continuing to grow.

Qingdao now hosts 100 enterprises certified for dual-standard manufacturing. Among them is Qingdao Shunchang Food Co., Ltd., which acquired a domestic food production license to expand its presence in the Chinese market. “We process vegetables for export to Japan, South Korea, and the European Union. Our product quality exceeds both export and domestic standards, and our production lines can switch seamlessly between the two,” said Zhang Qin’e, the company’s general manager.

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China expands visa-free access and optimizes tax refunds to boost inbound tourism

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By Tian Hong, Wang Yunna, People’s Daily

As China continues to expand its opening up, its visa-free policy network keeps growing, and departure tax refund procedures are being streamlined. These measures are fueling rising enthusiasm among international visitors for tourism and shopping in China.

China fully implemented its departure tax refund policy in 2015 and has since rolled out a series of new and improved measures. In April of this year, six government departments, including the Ministry of Commerce, issued a set of measures to further optimize the policy to better serve international tourists and stimulate inbound consumption.

Key improvements include lowering the minimum purchase threshold for tax refunds from 500 yuan ($70.7) to 200 yuan and raising the cash refund limit from 10,000 yuan to 20,000 yuan. These changes have effectively expanded the number of tax-refund stores, enriched the range of refundable goods, and improved the overall service quality, yielding clear results.

Latest data from the State Taxation Administration show that from January to September this year, applications for departure tax refunds by overseas travelers surged by 229.8 percent year on year, while the total refund amount rose by 97.4 percent. These figures underscore the growing inbound consumption vitality unleashed by the continued optimization.

International tourists have responded positively. A Swiss visitor, shopping with his girlfriend at a flagship store on Shanghai’s Huaihai Road, praised the convenience: “The tax refund process was quick and smooth, offering a 9 percent refund — almost like a 10 percent discount. For a first-time visitor to China, this is very convenient.”

These streamlined procedures and financial incentives are enhancing China’s appeal as a premier shopping destination, further integrating the country into global tourism networks.

Beyond authorizing individual stores to offer instant refunds, Shanghai established 26 centralized tax refund service points across key commercial districts. These hubs allow tourists to consolidate refunds from multiple purchases made at different stores in a single location, greatly improving efficiency. 

During the 8th China International Import Expo (CIIE) in November 2024, Shanghai introduced a centralized instant tax refund service station directly at the expo venue — a first. This station featured integrated POS systems for departure tax refunds, combining pre-authorization agreements with real-time advance refunds.

Currently, Shanghai boasts over 1,700 tax-refund stores citywide. Many service points now offer mobile refund options. This enables the entire process, from purchase invoicing and customs verification to refund payment, to be completed online. Through online pre-authorization, refunds can be received instantly via platforms like Alipay.

This year, Shanghai has handled departure tax refunds for nearly 100,000 travelers from 179 countries and regions. As of Sept. 29, the city’s departure tax refund sales had increased by 83.8 percent year on year, while the total refund amount rose by 82.9 percent, ranking first among all provincial-level regions in China.

“More than 3,000 yuan in refunds was credited instantly. This is remarkably efficient. Traveling in China has been a great experience!” said a tourist from Spain, who spoke highly of China’s instant tax refund policy.

At Teemall shopping center in Guangzhou, south China’s Guangdong province, he spent over an hour carefully selecting a wide variety of items, from smartphones and drones to traditional Chinese clothing, as well as specialty snacks and intangible cultural heritage-inspired creative products. 

“Chinese products are of high quality and offer great value for money. I really like them,” he said. He initially thought that only luggage and clothing were eligible for instant refunds, but was pleasantly surprised by the wide range of applicable products. 

With a smooth application process and rapid refund, the Spanish tourist was able to fully enjoy his shopping experience in China. “When I come the next time, I’ll bring a few extra empty suitcases to take more Chinese products home,” he said.

The continued improvement of instant tax refund policies and services is attracting a growing number of overseas tourists to travel and spend in China. 

Guangzhou officially launched its first batch of centralized instant tax refund service points at the end of June, making refund procedures simpler and payments faster. 

With the introduction of one-stop online services for in-store instant refunds, overseas visitors can now scan a merchant-specific QR code after shopping and complete the refund process independently online, with the fastest refunds credited within five minutes. 

At present, the number of tax-refund stores in Guangzhou has exceeded 1,500, covering all 11 urban districts of the city.

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Withdrawing erroneous remarks on China’s Taiwan only viable solution for Japan

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By Atsushi Koketsu

The erroneous remarks on China’s Taiwan made by Japanese Prime Minister Sanae Takaichi have triggered strong dissatisfaction of the Chinese government and the Chinese people. Regrettably, neither Takaichi herself, nor the Japanese government, nor some segments of the Japanese public have fully understood the fundamental reasons behind China’s anger.

Takaichi’s remarks constitute a serious violation of international law and the UN Charter, and amount to a blatant interference in China’s internal affairs. Taken at face value, her statements effectively negate the one-China principle explicitly established in the Sino-Japanese Joint Statement, and are tantamount to denying the political foundation of Japan-China relations. 

The Chinese government’s criticism in this regard is entirely justified and beyond reproach. The Japanese government frequently accuses China of attempting to change the existing order, but in reality, it is Japan itself that is seeking to undermine the post-war international order and alter the status quo in the Taiwan Strait.

The Japanese government should reaffirm the core content of the Sino-Japanese Joint Statement and re-examine the true significance of the one-China principle that Japan upheld before and after the normalization of diplomatic relations with China. 

It is worth noting that certain political forces in Japan have taken China’s strong protest and firm opposition to Takaichi’s remarks as an excuse to aggressively promote the so-called “China threat” theory, using an overly simplistic and dangerous line of reasoning to dismiss the guiding principle of the four political documents between China and Japan. Some even groundlessly accused China of adopting a “high-pressure stance.” 

Such clumsy reactions, which distort right and wrong, have gained traction amid the growing rightward shift in Japan’s political thinking. This very environment has become fertile ground for the emergence of Takaichi’s erroneous Taiwan-related remarks.

On Nov. 21, Japan’s chief cabinet secretary Minoru Kihara stated at a press conference that if the remarks by the Japanese side were misunderstood, it would be more cautious in the future. This amounted to an indirect acknowledgment of the inappropriateness of Takaichi’s remarks. 

However, given the gravity of the issue, the Japanese government must correct the erroneous remarks and offer an apology. Attempting to brush the matter aside by saying the remarks were “misunderstood” fails to demonstrate any sincerity toward China.

The legal basis for the so-called “survival-threatening situation” derives from the new security legislation that Japan’s parliament forced through in 2015. 

Japan, which ought to have upheld its identity as a peace-loving nation committed to its Pacifist Constitution and have worked to erase the stigma of past aggression, has in recent years moved in the opposite direction, a deeply regrettable development. 

The so-called three security documents of Japan in effect provide the grounds for implementing a “preemptive strike” strategy and, in this sense, are unconstitutional in nature. 

Takaichi’s erroneous Taiwan-related remarks have dealt a serious blow to Japan-China mutual trust. A prime minister who repeatedly claims to “protect the nation and its people” has instead personally inflicted grave damage on the security of both. The negative repercussions are bound to extend across Japan’s political, economic, tourism, and educational sectors.

Takaichi’s lack of acuity and shortcomings in foreign and defense policy are now impossible to conceal. It can be said that she has exposed to the international community, including China, the decline and low caliber of Japan’s diplomatic capacity.

Even more troubling is that the Japanese government appears intent on covering up the prime minister’s major misstep, doing everything possible to defend her erroneous remarks. 

Behind Takaichi stands a convergence of hawkish and militaristic forces both within and outside the Liberal Democratic Party. These forces have long sought to steer Japan toward becoming a military power. Concerns previously expressed about Takaichi catering to these forces after taking office have now quickly become reality.

Since Takaichi made her erroneous Taiwan-related remarks, Japan-China relations have continued to deteriorate. At this point, promptly withdrawing the remarks and issuing a public apology is the only viable solution. Stable and friendly Japan-China relations constitute one of Japan’s most important guarantees of security.

(Atsushi Koketsu is a professor emeritus at Japan’s Yamaguchi University.)

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Industrial development solidifies results of China’s poverty reduction

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By Chang Qin, People’s Daily

In Beichi village, Yichuan county, Yan’an, northwest China’s Shaanxi province, neat rows of newly planted, dwarf high-density apple orchards now stretch across the hillsides. Five years ago, villager An Wenzhong made a difficult decision: cutting down his mature apple trees. The old varieties were aging and earned little, but his bold move marked a shift from inefficient farming to modern agriculture. 

Indeed, what An cleared away was an inefficient past; what he planted was the future of modern agriculture.

The decision has since yielded tangible results. Standing in his new orchard, An did the math: the original 20 mu (1.33 hectares) of old orchards generated an annual output of 140,000 yuan ($19,797), while the revamped 16 mu of new orchards can yield as much as 320,000 yuan a year once they reach full production.

This transformation reflects not only the upgrading of the Yan’an apple industry, but also a leap in development quality. It reveals the core logic behind China’s poverty alleviation: shifting from giving relief handouts to fostering self-reliance through industrial development.

A longstanding challenge in global poverty reduction has been escaping the cycle of persistent poverty despite continuous aid. China’s solution lies in a development-oriented approach — treating economic growth as the fundamental means to address poverty.

Industrial development is central to rural revitalization. Across China, regions have turned local resources into thriving industries: wood ear mushrooms in Zhashui (Shaanxi), daylilies in Datong (Shanxi), and lychees in Maoming (Guangdong). By the end of 2024, each of China’s 832 counties that had shaken off poverty had cultivated two to three leading industries, providing people lifted out of poverty with stable income channels.

Practice shows that industrial development is the fundamental solution to poverty reduction. Turning local resources into competitive strengths creates sustained momentum for economic growth and improved livelihoods.

To further unleash endogenous dynamism, it is also essential to establish and improve benefit-linking mechanisms, ensuring that people share in the fruits of development.

In Ma’anshan village of Chifeng, north China’s Inner Mongolia autonomous region, mountain grapes have been designated as the leading industry. The village has established an operational model that integrates companies, cooperatives, production bases, and farming households. This industrial chain has created employment opportunities for many villagers. 

Across the country, various models including order-based agriculture, profit-sharing arrangements, and equity cooperation, are being explored to forge communities of shared interests between farmers and business entities, allowing farmers to share in the value added by rural industries.

China has emerged as a global exemplar of inclusive development—narrowing regional disparities, improving income distribution, strengthening social safety nets, and creating opportunities. To address challenges like fragmented rural supply chains, effective collaboration between markets and government enhances efficiency and vitality. In Liuzhou (Guangxi), for instance, government support through standardization, planning, and industrial parks propelled the local snail rice noodle industry from street food to a thriving sector.

This approach — empowering communities through localized industries supported by strategic policy — has redefined poverty alleviation, turning once-overlooked resources into engines of prosperity.

Meanwhile, market players have sharpened product quality and used e-commerce and livestreaming to expand the reach of snail rice noodle. Extensions of the industrial chain such as snail farming and the cultivation of bamboo shoots, green beans, and wood ear mushrooms, have helped lift farmers out of poverty and into prosperity.

Allowing the “invisible hand” of the market and the “visible hand” of government work in better coordination is a distinctive strength of China’s economic development. 

Across vast rural areas, traditional farming bases are upgrading into modern agricultural industrial parks, advancing from single-product production toward integrated rural industrial systems that combine grain, cash crops, and feed; coordinate agriculture, forestry, animal husbandry, and fisheries; link production, processing, and sales; and integrate agriculture with culture and tourism. 

In addition, in building a modern industrial system, innovation chains, industrial chains, supply chains, and value chains are being seamlessly aligned. Scientific and technological innovation is guiding industrial innovation, while industrial upgrading, in turn, propels technological iteration.

A proactive government provides direction, ensures stability, and creates platforms, while an effective market allocates resources, unleashes vitality, and drives innovation, together forging a powerful force for high-quality development.

As a Chinese saying goes, “If you give a man a fish, you feed him for a day. If you teach a man to fish, you feed him for a lifetime.” China has not only eliminated absolute poverty through its own development, but has also actively carried out international cooperation on poverty reduction. By sharing and promoting technologies such as Juncao cultivation and hybrid rice, China has helped other developing countries foster industries and explore poverty reduction paths suited to their own national conditions.

Development has no final destination. As China embarks on a new journey, continued efforts to refine and strengthen distinctive rural industries will further solidify the foundations of poverty alleviation, enhance its sustainability, and widen the path toward common prosperity.

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