China’s private Caixin services PMI reaches 52.2 in April, expanding for 16th consecutive month

The Caixin China General Services Purchasing Managers' Index (PMI) came in at 52.5 in April, expanding for the 16th consecutive month, according to data released by Caixin on Monday. Chinese observers said the figure reflected accelerated momentum in China's broad services activity.

The expansion was primarily reflected in the sustained growth of new orders, which rose at the fastest pace in nearly one year. Improvements in overseas markets and increased tourism activity led to the highest growth in new export orders in 10 months, marking the eighth consecutive month of expansion.

The index in April was slightly lower than the March reading of 52.7, but it remained in expansion territory, mirroring the sustained pickup in both the supply and demand sides in services. 

The new orders index and new export orders index saw moderate increases in April, hitting their highest levels since June and July 2023. 

"Improved demand drove a continuous increase in supply. Business activity and total new orders both grew for the 16th straight month, with the latter increasing at the fastest pace since May last year, indicating a solid resurgence in demand," Wang Zhe, a senior economist at Caixin Insight Group, said on Monday.

First-quarter economic conditions have exceeded market expectations, with consumption gradually picking up, signaling a positive start to the year. 

Analysts expect the economy to ride on the momentum of the good start to the year, with more driving force from brisk services activity and consumption in the remaining months.

"The sustained expansion of the services PMI reflects the stability of China's economic development, symbolizing the leading role of the services sector in the country's economic recovery," Li Chang'an, a professor at the Academy of China Open Economy Studies of the University of International Business and Economics, told the Global Times on Monday.

This is a significant outcome of policies aimed at boosting domestic demand and stimulating consumption, and the expansion of the tertiary sector is likely to continue, said Li. 

According to the Ministry of Culture and Tourism, during the five-day May Day holidays, 295 million domestic trips were made, a 7.6 percent year-on-year increase and a 28.2 percent gain compared with the 2019 figure. Total domestic tourist spending reached 166.89 trillion yuan ($23.13 billion), up 12.7 percent year-on-year and a 13.5 percent increase compared with 2019.

However, some economic pressure persists. According to data from Caixin, the services sector employment index remained in contraction territory for a third consecutive month.

"Despite optimistic macroeconomic data driven by policy efforts, the economic recovery will take time," Chen Fengying, an economist and former director of the Institute of World Economic Studies at the China Institutes of Contemporary International Relations, told the Global Times on Monday.

Two Chinese mega-cities lift curbs on buying homes to shore up real estate market

Two Chinese mega-cities, Hangzhou in East China's Zhejiang Province and Xi'an in Northwest China's Shaanxi Province, said on Thursday they would lift all home purchase restrictions to shore up the local real estate market and boost market confidence. It follows similar moves recently in other big cities like Chengdu, Shenzhen and Beijing.

The city housing authority in Hangzhou said in a notice that it will no longer review the qualifications of homebuyers, with the restrictions on residential property purchases having lasted for eight years, the Xinhua News Agency reported. This comes after Hangzhou announced last October it would narrow the scope of home purchase restrictions to four core districts, including Shangcheng district. It also announced the removal of all restrictions on home purchases starting from May 9.

Xi'an, the capital city of Shaanxi Province, has announced similar measures. The local authorities said they will remove all restrictions on residential property purchases and will no longer review the qualifications of homebuyers for both new and second-hand homes.

As of Thursday, a total of 35 Chinese cities have relaxed restrictions on home purchases, while 24 have completely scrapped all curbs on residential property purchases. In addition, more than 160 cities have adopted home-buying loosening policies, CCTV News reported.

These measures will encourage other cities to follow suit and will boost market confidence, Chinese analysts said.

More regions and cities in China will start a new wave of policy relaxation, along with promotions by developers, Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, said on Thursday.

Chinese authorities have been ramping up measures to prop up the real estate sector recently. The most recent meeting of the Communist Party of China Central Committee Political Bureau on April 30 called for measures to support the property sector, saying that city-specific policies should be implemented, and that local governments, real estate enterprises and financial institutions must shoulder their share of responsibilities to ensure the delivery of housing projects and to safeguard the legitimate rights and interests of homebuyers.

Combining the new changes in the relationship between supply and demand in the real estate market and people's aspirations for high-quality housing, it is imperative to conduct research on policies and measures to reduce housing inventory and improve the quality of new housing in a coordinated manner. New modes for the development of the real estate sector will be fostered to boost the sector's high-quality development, according to Xinhua.

Report on China-EU environment, climate cooperation released

A think tank report titled "China-EU Cooperation on Environment and Climate: Progress and Prospects" was released globally on Friday.

The report was jointly released by the Research Center for Xi Jinping Thought on Ecological Civilization, the National Energy Conservation Center, the Xinhua Institute and the Institutes of Science and Development under the Chinese Academy of Sciences.

It consists of five sections, namely the introduction, bilateral joint efforts to build a community of all life on Earth, deepened bilateral cooperation to address climate change, concrete progress in bilateral cooperation on the eco-environment, and steady long-term development of bilateral cooperation concerning the environment and climate.

In the face of ecological and environmental challenges, China and the European Union (EU), the largest developing country and the largest union of developed countries, respectively, must shoulder their responsibilities, carry out cooperation on the environment and climate, and work together to maintain sustainable development of the Earth, according to the report.

Noting green as the distinctive color of China-EU cooperation, the report said this cooperation not only enriches and develops the bilateral comprehensive strategic partnership, but also directly advances the environmental governance, trade and investment of both sides, benefiting the entire world.

Looking at the future, the two sides should work together to promote more in-depth and pragmatic cooperation, further dovetail their environmental and climate policies through high-level dialogue and cooperation mechanisms, establish a long-term cooperation framework, and promote global environmental governance and climate action, the report stated.

The report also called for the further strengthening of the bilateral green partnership, and jointly building a community of all life on Earth, and make contributions to promoting a cleaner and more beautiful world.

Close ties between Russia and China are crucial for global and regional stability: Russian envoy

Editor's Note:

The political trust between China and Russia has been steadily strengthened over the years, leading to close strategic coordination and a significant increase in bilateral trade volume. After a year serving as the Russian Ambassador to China, what are the biggest impressions that Igor Morgulov has had during his time in China? In what areas have bilateral relations between China and Russia made significant progress? Global Times reporters Xie Wenting and Bai Yunyi (GT) spoke with the Russian Ambassador to China on these and other topics.

GT: You have been in China for a year now. What has your experience working in China over the last year been? What have your biggest impressions been during your time in China?

Morgulov: China is an amazing country. Time seems to pass by quickly here. In the last year, many important events have taken place, making time fly by.

I was particularly impressed by how quickly China overcame the impact of the COVID-19 pandemic and accelerated the recovery of its national economy. I witnessed the Chinese government implementing decisive and consistent measures to promote the restructuring of the national economic mechanism and propel it toward intensive development.

In terms of the bilateral agenda, the most significant events undoubtedly revolved around the reciprocal visits between the leaders of China and Russia. In March this year, President Xi Jinping paid a state visit to Russia. In October, President Vladimir Putin attended the Third Belt and Road Forum for International Cooperation (BRF III). The two heads of state held meetings. As a result of these contacts, the main paths for further development of the bilateral ties were outlined.

Looking back at cultural exchanges, we cannot ignore the Ninth China-Russia Youth Games held in Chongqing in May under the framework of the China-Russia Sports Exchange Year. Additionally, in June, the world-renowned Mariinsky Theatre Symphony Orchestra, conducted by Valery Gergiev, and the Tchaikovsky Symphony Orchestra, conducted by Vladimir Fedoseyev, performed on a specially-assembled stage at the foot of the Great Wall. This extraordinary performance left a deep impression on those in attendance.

GT: How do you evaluate the current relationship between China and Russia? Over the last year, in which areas do you think China-Russia relations have made significant progress? Has mutual trust between China and Russia been affected by geopolitical and international changes?

Morgulov: The Russia-China comprehensive strategic partnership of coordination for a new era is currently at an unprecedentedly high level and continues to develop. The relationship between the two countries is mature, sustainable, and characterized by a high level of mutual trust, respect, consideration of each other's fundamental interests and mutual support. Both Russia and China are major world powers with strong and continuously growing comprehensive national strength, as well as holding immense potential in the economic and technological fields. Most importantly, I believe, both countries have an abundance of human resources - we have talents in various fields.

The strengthening of the Russia-China partnership has attracted attention from the international community. Sometimes, some ill-intentioned individuals deliberately hype up the Russia-China relationship and fabricate the theory of a threat posed by the growing cooperation between Russia and China.

Any rational person can recognize that the close ties between Russia and China are crucial for global and regional stability. The leaders of both countries have repeatedly emphasized that Russia-China relations are not directed against any third party, and are not a political-military alliance. In many aspects, our cooperation has already surpassed traditional such alliances, enabling both countries to respond to various challenges in a more flexible and efficient manner. The stable and consistent relationship between the two countries allows both sides to continuously promote mutually beneficial cooperation in various fields while strictly safeguarding their own interests, benefiting the people of both countries.

Another cornerstone of cooperation between Russia and China is their similar, and even identical, positions on many international and regional issues. Both countries advocate for a more representative and democratic international order that takes into account the interests of all countries.

This principled stance has received widespread support from the majority of countries around the world, but it has also triggered "allergies" in some Western countries that are unwilling to accept the established fact that their own hegemony is diminishing. It is evident that both Russia and China are ready to engage in pragmatic and mutually beneficial cooperation with any country willing to engage in equal dialogue.

Currently, the geopolitical landscape is undergoing significant changes. Against this backdrop, Russia and China have successfully demonstrated to the world that their partnership remains unbreakable, even in the face of escalating conflicts and confrontations on the international stage. The level of mutual trust between the two countries has been enhanced. Russia and China have confirmed their strategic choice to further deepen cooperation, regardless of any unfavorable external factors they may encounter.

Today, we can confidently say that we have successfully passed the test to the stability of Russia-China relations. In practice, this is reflected in stable bilateral trade with growth rates reaching double digits, a significant increase in the proportion of settlements in local currencies in bilateral trade, and the continuous enhancement of cooperation in various fields, despite extortion by and threats from our opponents. There is no doubt that this positive trend will continue to develop.

GT: Do you believe that China and Russia have created a "new paradigm" for major power relations in the world? What does this mean for the current international order?

Morgulov: I believe that the Russia-China relationship is a model of cooperation between major powers in the 21st century.

Both Russia and China are large countries with unique histories and rich cultural heritages. At the same time, both countries independently decide their own development paths and defend true sovereignty - these are the core values that both countries uphold.

These basic principles apply to various areas of the extensive bilateral cooperation between our two countries. Based on this foundation, the Russia-China comprehensive strategic partnership is continuously being strengthened.

Moscow and Beijing closely coordinate their efforts on the world stage. We adhere to a policy of sovereign diplomacy, defend the purposes and principles of the United Nations Charter, and support the principle of upholding international law. This has resonated with the majority of countries in the international community. We will continue to closely coordinate our diplomatic positions in order to promote the construction of a more just and democratic world order based on the diversity of cultures and civilizations, and the interests of all parties.

GT: In which areas do Russia and China expect to strengthen cooperation in the future?

Morgulov: In terms of pragmatic cooperation, despite the complex geopolitical situation, economic and trade relations between Russia and China continue to show strong momentum. From January to October 2023, bilateral trade volume exceeded $196 billion, a year-on-year increase of 27.7 percent. We have every reason to believe that this year, the bilateral trade volume will surpass the baseline target of $200 billion set by the two heads of state.

As is well known, energy is the "locomotive" of Russia-China economic and trade cooperation. We know that China attaches great importance to energy security and intends to further strengthen cooperation with Russia because our country is a reliable energy supplier.

Russia is a leader in exporting crude oil, coal, natural gas, and liquefied natural gas to the Chinese market. In addition, energy cooperation between the two countries is not limited to raw material trade but also involves the joint implementation of large-scale industrial and infrastructure projects, such as liquefied natural gas production, gas pipeline construction, oil and gas field development and exploration, the peaceful use of nuclear energy and natural gas chemical products. This work is of strategic significance as it lays the foundation for energy cooperation in the coming decades.

At the same time, we have noticed that there is enormous growth potential in the supply of Russian agricultural products to China. We see high demand in China for Russian seafood, meat, grains, and oil plants.

Furthermore, Russia also has vast development opportunities in increasing the exportation of minerals, various metals and metal products, pulp and paper products, and chemical products such as fertilizers to China. On the other hand, China is increasing its exports of computer equipment, mobile phones, and various types of vehicles, including cars, trucks, buses, special vehicles, and their components to Russia. We have noticed that Chinese partners are interested in investing in Russia and cooperating with Russian operators in the automotive and other industrial sectors.

We will continue to make unremitting efforts with our Chinese friends to deepen practical cooperation in various fields. In this context, it is of great significance to carry out systematic work in accordance with the development direction clearly stated in the Joint Statement of the Russian Federation and the People's Republic of China on Deepening the Comprehensive Strategic Partnership of Coordination for the New Era.

GT: We have noticed that some Western media outlets have suggested that Russia is maintaining a "cautious stance" regarding China's collaboration with Central Asian countries under the BRI. How do you view this narrative?

Morgulov: We hold a positive attitude toward the development of equal and mutually beneficial cooperation among all members of the international community, especially China and Central Asian countries that are friendly to Russia. We believe that strengthening cooperation between China and Central Asian countries in various fields is an important factor in maintaining regional stability and stimulating economic growth. The security, stability, and well-being of Central Asian countries are in the interests of both Russia and China. We are willing to enhance mutual coordination and support Central Asian countries in defending their sovereignty and national development. We will never accept external interference in regional affairs or the introduction of "color revolutions."

China's approach to developing cooperation with Central Asian countries is in stark contrast to the policies of the US and its allies. We have noticed that the US and the West are attempting to pressure Central Asian countries using the old methods, which goes against the principle of non-interference in the affairs of sovereign states. The West's attempt to view cooperation with Central Asian countries from the perspective of promoting anti-Russia and anti-China agendas is unacceptable. This completely differs from our approach.

We believe that cooperation between China and Central Asian countries will play an important role in promoting alignment and collaboration between the Eurasian Economic Union and the BRI, and is also in line with President Putin's initiative to establish a "Greater Eurasian Partnership."

GT: Has Russia adjusted its foreign policy focus in the last two years? Some voices suggest that, to counter Western sanctions and diplomatic isolation, Russia is seeking to increase cooperation with Asia-Pacific countries and play a more important role in the Asia-Pacific region, such as conducting joint exercises with many Asia-Pacific countries. Do you agree with this viewpoint?

Morgulov: Some people believe that due to the deterioration of relations with the West, Russia is turning toward the East. I completely disagree with this view. Russia has always been an integral part of the Asia-Pacific region. When formulating its foreign, economic, and investment policies, Russia has always taken into account the significant advantages of this direction.

Over the years, Russia has engaged in extensive cooperation with countries in the Asia-Pacific region. Russia holds an important position in the foreign policies of these countries, many of which are Russia's key strategic partners.

We are strengthening cooperation through existing multilateral mechanisms. The Shanghai Cooperation Organization is a core element of the Asia-Pacific regional architecture. 2024 will mark the fifth year since the establishment of a strategic partnership between Russia and the ASEAN. Russia actively participates in various activities led by the ASEAN. Thanks to these efforts, we have laid the necessary foundation for further development of multi-field cooperation with the Asia-Pacific region and will continue to strengthen multi-level contacts with countries in this region based on this foundation.

China-Angola economic, trade ties boom amid presidential visit, injecting confidence for more cooperation

China-Angola economic and trade ties have entered a new stage with vast areas of cooperation to explore, ranging from oil and gas to manufacturing and trading for win-win outcomes, Chinese and Angolan businesspeople told the Global Times at a high-level business forum on Saturday.

The remarks came amid the state visit of the President of Angola Joao Lourenco to China from Thursday to Sunday, as the two countries announced the elevation of bilateral relations to a comprehensive strategic cooperative partnership, charting a course for even brighter economic and trade cooperation.

During the presidential visit, a two-day business forum was held on Saturday and Sunday, focusing on deepening bilateral cooperation in core areas such as energy and mining among other sectors, drawing the participation of hundreds of government officials and business representatives from both sides.

At Saturday's event, Lourenco said that the presence of Chinese enterprises in Angola is significant and cannot be overlooked. He welcomes more Chinese companies to come to invest in Angola.

The president also noted good examples of bilateral cooperation, including projects such as the construction of the new Luanda Airport by Chinese firms, in addition to road, railway and hydroelectric power projects.

Angola hopes to attract more Chinese investors who can bring capital and technology as well as expertise to enhance production efficiency, while assisting Angola in achieving economic diversification, Lourenco said.

The positive and warm atmosphere of bilateral economic cooperation has sent a very positive message to businesses.

Companies from both sides expressed their eagerness to tap into the greater potential for economic and trade cooperation as bilateral ties get stronger.

Manuel Francisco Pedro, chairman of the board of directors of the Luanda-Bengo Special Economic Zone in the capital city of Luanda, told the Global Times that more Chinese companies are coming to Angola to invest these days.

"Last year, we approved 17 new Chinese projects in our economic zone. Now, we have about 25 Chinese companies in total that are involved in wide range of fields," Pedro said.

"So far, we have about $3 billion worth of investment from Chinese companies, and we are here to attract more investment from businesses of all sectors," Pedro said.

"I believe that as our bilateral relationship has come to this high level, it opens more opportunities for businesses and investment," said Pedro, who has visited China many times.

Chinese companies are equally enthused about the reinforced bonds underscored by the high-level visit and eagerly anticipate capitalizing on this opportune moment to tap into the potential in the deeply complementary relationship between China and Angola.

The leaders of the two countries signed a comprehensive strategic cooperative partnership, which means that bilateral cooperation in various fields will be even stronger, which is very beneficial for Chinese nationals and enterprises in Angola, Huang Yuequan, a vice president of the Angola-China Chamber of Commerce, told the Global Times at the forum.

The Angolan government strongly encourages Chinese investment, primarily focusing on the mineral and energy sectors, which offer broad prospects. Additionally, cooperation in agriculture holds great potential, as Angola has relatively undeveloped agricultural resources compared with China's mature industry, Huang said.

More Chinese companies are coming to the African country for investment, which is reflected in the current situation in the Chinatown. The Chinatown is now fully saturated with companies mostly from China. In response to the growing expansion of investors, the construction of a new commercial zone is in progress, which will be three times larger than the current Chinatown, according to Huang, who is also a shareholder of the Chinatown in Luanda,.

"In addition to the huge market potential in Angola, the country can be a stepping stone for foreign businesses extending to other neighboring countries in Africa," said Huang.

Dongying Ruifeng Petroleum Technology Development Co is exploring an entry into the Angolan market. The company's senior advisor, Zha Houbao, told the Global Times that as bilateral relations continue to improve, companies feel more confident about investing in Angola.

"Our next step is to delve into the market, understand their more nuanced needs, and design products tailored to the local market need, which is a win-win outcome for both sides," said Zha.

Angola stands as China's second-largest trading partner in Africa and an important investment destination for Chinese companies, with bilateral trade exceeding $23 billion last year.

During the president's visit, China and Angola signed documents regarding the Belt and Road Initiative cooperation plan, as well as plans for the economy and trade, agriculture, green development and other fields, according to the Xinhua News Agency.

Bilateral cooperation has emerged as a robust engine driving economic and social development in Angola, generating substantial employment opportunities locally and delivering tangible benefits to the peoples of both nations, Liu Yuxi, special representative of the Chinese Government on African Affairs, said at Saturday's business forum.

China will continue to take proactive measures to support and encourage more capable and reputable enterprises to invest and operate in Angola, creating more new highlights of cooperation, said Liu.

Attacks on HK’s international financial hub status ‘groundless’: political advisor

The assertion that the Hong Kong Special Administrative Region (HKSAR) has become a "ruin of an international financial center" is groundless, as the basic elements underpinning Hong Kong's status as a global financial center have not changed, and the region has been further leveraging its role as a super connector between the Chinese mainland and the rest of the world, Brian David Li Man-bun, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and co-chief executive of the Bank of East Asia (BEA), told the Global Times on Thursday.

"Hong Kong has a number of competitive edges in the global financial market, including the common law system, a simple low tax system and professional services and regulatory systems that are in line with international standards," Li said.

BEA is a Hong Kong public bank based in the HKSAR.

He also highlighted the guarantee on free flows of capital under the Basic Law, good financial infrastructure, a stable and favorable business environment as well as a stable and efficient banking system, among other things.

In 2022, Hong Kong received a total of $117.7 billion in foreign direct investment, ranking fourth in the world after the US, the Chinese mainland and Singapore, according to the UN Conference on Trade and Development.

In addition, "Hong Kong has made significant progress in such finance-related sectors as green finance, fintech and offshore yuan business, which also paves the way for its development," Li added.

As a next step, Li suggested that Hong Kong integrate further into the national development, and make a greater contribution to the country's high-level opening-up. These efforts would also be conducive to enhancing the city's global financial status, while providing a solid foundation for its economic recovery this year.

The Central Financial Work Conference held last October called for accelerating the building of a nation with a strong financial sector. Pan Gongsheng, the governor of the People's Bank of China (PBC), the country's central bank, said at a press briefing on Wednesday that expanding opening-up is an important propeller and assurance of the high-quality development of China's financial industry.

Li noted that Hong Kong, as the world's largest offshore yuan business center, has an outsize role to play in facilitating the globalization of the yuan.

"More countries and regions have shown concern about excessive reliance on the US dollar amid rising geopolitical tensions, and many, having strong confidence in the Chinese mainland's economic outlook, have boosted their use of the yuan in payments, investments and reserves," Li explained.

Li also urged Hong Kong to double down on its efforts to expand issues of yuan-denominated financial products, such as promoting the Hong Kong dollar-yuan dual-currency share counter service across the equity market.

Li, as a veteran banker, has witnessed the rising asset management demand of Chinese mainland residents in the past decade, which he said was partly thanks to the expansion of the 400 million middle-income populations.

He suggested expanding the scope of the financial connect programs between the Chinese mainland and Hong Kong, in addition to the Stock, Bond and Cross-Boundary Wealth Management connects.

The Stock Connect, announced in 2014, now contributes 11 percent of the Hong Kong Exchanges and Clearing Ltd's revenue, and 15 percent of average daily turnover in Hong Kong, according to a report by Fitch Ratings.

The average daily turnover of the Bond Connect surged to almost 49 billion yuan in January 2024 from 3.6 billion yuan in 2018, the report said.

Chinese authorities summon three express courier companies for talks

Chinese authorities on Thursday summoned three express courier companies, including YTO Express (Logistics) Co and Yunda Holding Co in Shanghai and Beijing-based JD Logistics, for administrative talks, which are suspected of providing consignment of firecrackers that breach government rules.

According to the official WeChat account of the State Post Bureau (SPB), the enterprises subject to inspection were suspected of posing serious security threats to both individuals and the public by delivering parcels of fireworks and firecrackers inappropriately.

In addition, some employees were found to be lacking in workplace discipline and safety awareness when collecting, receiving and inspecting the parcels.

The companies were required to fully and faithfully put the safety of the delivery process as  their first priority, uphold and act on the principle of seeking development in a safe manner, and putting the interests of the people above all else.

In the face of concerns over air pollution and out of other safety concerns, firework bans have been imposed by many local governments in China, and holiday fireworks activities have therefore been strictly restricted before the New Year’s Eve in 2023, according to thePaper.com.

The authorities include Department of Market Supervision & Inspection of the State Post Bureau (SPB), the Ministry of Emergency Management (MEM) and relevant department of the Ministry of Public Security (MPS).

More Taiwan sugar apple packaging factories, orchards registered by mainland customs

A new batch of 34 sugar apple packaging factories and 1,263 orchards in Taiwan have been registered by the General Administration of Customs, which will create favorable conditions for their entry to the mainland, Zhu Fenglian, a spokesperson for the State Council Taiwan Affairs Office, said at a press briefing on Friday. Zhu also noted that the sugar apple season is approaching in the island.

Since the announcement of the resumption of market entry for sugar apples in June, 37 sugar apple packaging factories and 1,288 orchards in Taitung county have been approved by the mainland. Businesses can inquire about the relevant information on the customs website. Packaging factories and orchards that have not yet passed the audit can learn the rectification requirements, according to Zhu.

Zhu expressed the mainland's willingness to have discussions with relevant parties in Taiwan to resume the entry of more agricultural and fishery products.

Due to the repeated instances of quarantine pests being detected, the mainland suspended the entry of sugar apples from Taiwan in September 2021 to mitigate the risk of plant epidemics, Xinhua News Agency reported.

Why Pentagon has trouble taming its wild V-22 Osprey

The US military has grounded its entire fleet of Bell Boeing V-22 Osprey tiltrotor aircraft after a deadly crash off Japan last week. Sputnik spoke to veteran Russian combat aircraft pilot Vladimir Popov to get a better sense of the problems associated with the fledgling technology, and why the US refuses to just close the Osprey program down.

A US Air Force Special Operations CV-22B Osprey flying from Yokota Air Base in Tokyo to Marine Corps Air Station Iwakuni on Okinawa went down over the East China Sea on November 29, killing all eight airmen onboard.

The crash was at least the 40th accident involving an Osprey since the aircraft's introduction into service with the US military in 2007, with crashes killing at least 53 US service members to date.

The Osprey program is the realization of an idea going back over a century ago of a tiltrotor, also known as a convertiplane - an aircraft with the ability to take off and land vertically using helicopter-style rotors attached to its wings, and which can adjust them during flight to a something closer to an airplane turboprop engine-style configuration. This dramatically increases the convertiplane's speed characteristics relative to those of an ordinary helicopter (up to doubling them).

The United States, the Soviet Union, Nazi Germany and Britain were the first countries to begin experimenting with tiltrotor designs, with each country building prototypes from the 1930s into the early post-war period before concluding the technology was too revolutionary to be implemented effectively using equipment and materials that existed at the time.

The USSR began work on a modern-day iteration of the convertiplane in the 1970s with the Mil Mi-30 Vintoplan (lit. 'Rotorplane') project, which featured an airplane-style fuselage design and characteristics allowing it to carry up to 32 people or up to five tons of cargo. The project, envisioned as a prospective replacement for the Soviet and Russian rugged Mi-8 workhorse series fleet of helicopters, was abandoned in the mid-1990s due to lack of funding after the USSR's collapse.
The Osprey project, designed by Bell and Boeing in the 1980s and first flown in March 1989, entered mass production in 2007, and has since been introduced into service with the US Marines Corps, Air Force, Navy, and Japan's Ground Self-Defense Force. The aircraft can carry up to 24 combat troops or nine tons of cargo. The V-22 is the only convertiplane to be mass produced by any nation, with over 400 built to date.

But as often happens with complex, innovative engineering designs, the glory of having the first fully operational, mass-produced convertiplane is also a heavy burden to bear, with the United States military not only reveling in the Osprey's advantages, but suffering from its flaws, with the V-22 suffering dozens of crashes and at least 16 hull losses to date.

Last week's crash in the East China Sea was the fourth fatal incident involving a V-22 in less than two years, and follows the August 2023 Marine MV-22B crash on Melville Island, Australia during an exercise, killing three service members, the June 2022 crash of a Marine MV-22B in California, killing five troops, and an MV-22B crash in Beiarn, Norway in March 2022, which killed another four Marines.

Investigations into the latest incidents have pointed to technical problems (including a drive system failure caused by a malfunctioning gearbox in the case of the June 2022 incident in California), and pilot error in the case of the March 2022 crash in Norway.

Investigators are yet to offer details on what may have caused the November 29 CV-22B crash off Japan, although eyewitnesses have reported fire coming from one of the aircraft's engines and the Osprey reportedly flying upside down before an explosion spewed wreckage into the surrounding water.

Sunk Costs

Speaking to Sputnik about last week's Osprey crash, and asked why the US military continues to use the convertiplanes despite their crash-prone nature, Honored Military Pilot of Russia Vladimir Popov explained that it likely has to do with the resources the Pentagon has expended on the project.

"The fact is that financial resources have already been invested into the aircraft's creation and implementation," the retired Air Force Major-General with decades of service under his belt told Sputnik.

"Most likely, the engineers, designers, technologists and everyone who took part in the Osprey's development decided that its reliability can be assured, and that it can be improved in the course of operations," Popov said.

"They are likely hoping to get an effective machine, but everything remains in the stages of development and refinement. For now, of course, such an aircraft cannot really be used anywhere, since doing so means losses of personnel and money down the drain. The idea is good, but the implementation, not so much," the veteran pilot explained.

The problem with convertiplane technology at its current stage lies with the components allowing the aircraft to switch from vertical to horizontal flight mode, Popov said. "This node is 'charged' with a great deal of energy, because large loads hang on it. It may not be able to process the transition quite correctly" at times, resulting in accidents.

"Tiltrotors have been flying for a very long time, and they have a short service life. Thus, it's too early to say that it has already reached the peak of its operational maturity. What needs to be done is to clarify what went wrong in each specific case, and to approach the issue carefully and get to the bottom of it. What's also needed is to improve working with personnel, to conduct additional tests, and change the training of the pilot and crew members. The US may continue to operate Ospreys, but they need to think long and hard about how to do so without making sacrifices. Sometimes it's enough to replace only one bolt and everything will work as it should," Popov stressed.

Last week's accident may have been the result of any number of factors, from pilot error and equipment failure to errors in the mathematical calculations by the Osprey's onboard computer, Popov believes.

That said, the veteran pilot is convinced that tiltrotor technology has good prospects for the future, given its status as what is effectively a hybrid airplane/helicopter design that can accelerate to speeds of up over 550 km per hour, far above the roughly 300 km per hour achieved by modern helicopters, which have now maxed out as far as further improvements in speed characteristics go.

COVID-19 infections in China at low epidemic level, no unknown viruses have been found: China CDC

COVID-19 infections in China are at a low epidemic level and no unknown viruses or bacteria have been found during the monitoring of respiratory pathogens in China, according to Chinese health authorities on Sunday.

BA.2.86 and its subvariants, including JN.1 variant, have become the dominant variants in some countries, yet, their public health risk in China is low given their low proportion, Chang Zhaorui, a research fellow from the Chinese Center for Disease Control and Prevention (China CDC) told a press briefing on Sunday.

The proportion of BA.2.86 variant strains in the reported sequences in China is very low, but the proportion among imported cases has increased rapidly since November, and the growth trend has gradually converged with that of the world, Chang noted, 

Since the first imported case of BA.2.86 variant strain was reported on August 31, a total of 160 sequences of BA.2.86 and its subbranches have been reported in China, including 148 imported case sequences and 12 local case sequences, but no severe or critical cases have been found, the research fellow from the China CDC noted.

According to a statement published by National Disease Control and Prevention Administration on Friday, the possibility of the JN.1 variant, a branch variant of BA.2.86, becoming a dominant strain in the country cannot be ruled out due to the subsequent impact of international strains and imported cases.

On November 21, the World Health Organization (WHO) adjusted BA.2.86 from a variant requiring global surveillance to a variant requiring attention, evaluating the risk of clinical severe infection as low and the overall assessment of public health risk as low.

Experts reached by the Global Times said infectious diseases are common throughout the world. New variants of the novel coronavirus can appear in the future at any time and people should get used to their existence. More attention should be paid to overlapping infections of influenza and other respiratory diseases. 

In the past months, China has been experiencing a spike in respiratory disease. 

Mi Feng, a spokesperson from National Health Commission, said on Sunday's press briefing that hospital visits for respiratory diseases across China have shown a downward trend. 

Mi said that local medical institutes have been doing their part to ease pressure on major hospitals, accounting for 44 percent of total fever and outpatient visits.

The spokesperson called for the continued strengthening of surveillance and overall situation analysis for respiratory diseases and the allocation of medical resources to cope with the spike.

According to latest weekly report by the China CDC, the positive rate of influenza virus in the southern and northern provinces of China slowed down between December 4 and 10, and some provinces showed a downward trend.