MNI China Press Digest Nov 20: Japan, Upgrading, Consumption

Highlights from Chinese press reports on Thursday:

• Chinese travellers have cancelled more than 500,000 flight tickets to Japan, with passengers sharply down for three consecutive days, as geopolitical tensions between the two countries intensify, according to Yicai. Aviation expert Li Hanming noted that the drop in numbers for Tokyo was less than Osaka and other second-tier Japanese cities, suggesting the withdrawing passengers were leisure travellers. Yicai reported that some domestic airlines have begun temporarily cancelling Japan-bound flights and reallocating capacity to markets with stronger demand. In turn, tourist flows are expected to shift toward destinations such as South Korea and Russia.
• China must intensify efforts to drive the digital and intelligent transformation of its manufacturing sector while advancing the innovative development of state-owned enterprises, Vice Premier Zhang Guoqing emphasised during research visits to Guizhou Province and Chongqing Municipality. Zhang called for solid progress in upgrading traditional industries, cultivating and expanding emerging sectors and planning strategically for future industries. He noted that the development of new quality productive forces should be pursued in line with local strengths and conditions. He also underscored the need to accelerate the integration of large AI models into enterprises’ R&D, design and production processes.
• During the 15th Five-Year Plan, China must elevate consumption share of GDP from the current 56% to 60%–65% and achieving annual consumption growth of more than 6%, according to Teng Tai, president of the Wanbo New Economy Research Institute. Teng said authorities should consider trillion-yuan income subsidies, state-owned equity transfers to the social security fund and capital market value expansion of trillions of yuan. Zero or even negative interest rate policies may also be needed to counteract deflationary pressures, Teng added.