China achieves key digital breakthroughs in 14th Five-Year Plan, ranks global second in computing power: official

 

AI Photo: VCG

China has made remarkable strides in digital infrastructure and technological innovation during the 14th Five-Year Plan period (2021-25) with its total computing power ranking second worldwide and technology breakthroughs in key digital sectors, Liu Liehong, head of the National Data Administration (NDA), told a press conference on Thursday.

In terms of digital infrastructure, by the end of June, the country had 4.55 million 5G base stations and 226 million gigabit broadband users, with its total computing power ranking second worldwide. These advancements have strongly driven economic and social development, Liu said.

Technological breakthroughs also shine in key digital sectors. The integrated circuit industry has formed a complete industrial chain covering design, manufacturing, packaging, testing, equipment and materials. Domestic operating systems are thriving, with China's self-developed HarmonyOS powering over 1.19 billion devices across over 1,200 product categories like smartphones, cars and home appliances. China's overall AI strength has seen systemic growth, holding 60 percent of global AI patents, according to the NDA.

The data industry has emerged as a new growth driver. In 2024, the number of data enterprises in China exceeded 400,000, and the scale of the data industry reached 5.86 trillion yuan ($817.24 billion), an increase of 117 percent compared with the end of the 13th Five-Year Plan period (2016-20). Digital economy growth has also created over 100 new occupations, generating fresh employment opportunities, according to the NDA.

By the end of 2024, China's software revenue had grown by 80 percent compared with 2020, while the added value of above-scale electronic information manufacturing had increased by over 70 percent. Meanwhile, intelligent transformation and digital upgrading are advancing at an accelerated pace. More than 10,000 smart factories have been established, covering over 80 percent of major manufacturing industry categories. Smart home appliances and smart wearables have emerged as new consumption trends. -  Global Times

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US national debt hits record $37 trillion amid mounting fiscal concerns

Photo taken on March 17, 2020 shows U.S. dollar banknotes in Washington, DC, the United States. Photo:XinhuaThe US government's gross national debt has surpassed $37 trillion, a record number that highlights the accelerating debt on America's balance sheet and increased cost pressures on taxpayers, the AP reported. The $37 trillion update is found in the latest Treasury Department report issued on Tuesday, which logs the nation's daily finances, according to the AP report.

Experts said that as the debt scale grows larger, future interest payment costs will continue to rise, posing risks to fiscal sustainability, while global investors may grow wary of US Treasury bonds amid credit downgrades and uncertainty.

The $37 trillion debt milestone comes less than eight months after the nation hit the $36 trillion threshold for the first time in late November 2024, and a little over one year after the $35 trillion mark was reached in late July 2024, Fox Business reported.

The $37 trillion debt amounts to about $280,000 per household or $108,000 per person, according to the Peter G. Peterson Foundation.
 
The national debt soaring past $37 trillion sends yet another clear message about America's unsustainable fiscal path, Chair and CEO of the Peter G. Peterson Foundation Michael Peterson said in a statement on its website.

"Our growing debt slowly damages our economy and the prospects of the next generation. As the government borrows trillion after trillion, it puts upward pressure on interest rates, adding costs for everyone and reducing private sector investment. Within the federal budget, the debt crowds out important priorities and creates a damaging cycle of more borrowing, more interest costs, and even more borrowing," Peterson said.
 
The Government Accountability Office outlines some of the impacts of rising government debt on Americans — including higher borrowing costs for things like mortgages and cars, lower wages from businesses having less money available to invest, and more expensive goods and services, according to the AP.
 
The Joint Economic Committee estimates at the current average daily rate of growth, an increase of another trillion dollars in the debt would be reached in approximately 173 days, according to the AP.

Peterson warned that "As our debt continues to rise, at some point the financial markets will lose confidence in our ability to overcome the politics to solve this problem."
 
To repay maturing debt, the US government has been issuing new debts to repay old ones, leading to the continuous expansion of the overall debt load. As the debt scale grows larger, it means that the future interest payment costs will continue to rise, posing risks to fiscal sustainability, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Wednesday.

If maturing debts cannot be repaid, US debt will become unsustainable, and its credit ratings may be downgraded, creating significant risks for global investors, Zhou added.

The expansion of the US government's debt scale has brought more uncertain risks to investments in US Treasury bonds, making global investors more cautious, Zhou said.

"Factors such as rating agencies' changes in sovereign credit ratings and sharp swings in US tariff policies at the real-economy level have added to this uncertainty," Zhou added.

Yang Changjiang, a professor at Fudan University, told the Global Times on Wednesday that the expanding US government debt has also brought greater uncertainty to the global financial market and the stable operation of the international monetary system.

In May, Moody's downgraded the US sovereign credit rating. It is expected that US large-scale fiscal deficits will further increase the burden of government debt and interest payments, and the fiscal situation is likely to deteriorate, Yang said.

Moody's Ratings in May cut the US' sovereign credit rating by one notch to Aa1 from Aaa.

"This one-notch downgrade on our 21-notch rating scale reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns," said a release by Moody's Ratings. 

The US fiscal performance is likely to deteriorate relative to its own past and compared with other highly rated sovereigns, according to the credit rating agency.

The downgrade means the US has lost its last triple-A credit rating from a major ratings firm, following cuts by Fitch Ratings in 2023 and S&P Global Ratings in 2011, according to Xinhua.Related:

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Third phase of payouts begins today

  

Star-studded screening: Anwar (centre) attending the ‘Taj Mahal’ preview, greeted by Akbar (right) and Zulfikar (left). — LOW BOON TAT/The Star

PUTRAJAYA: The government will begin disbursing payments for the Phase Three Rahmah Cash Contribution (STR) starting today, allocating RM2bil to ease the cost of living for low-income households under the government’s initiative.

Prime Minister Datuk Seri Anwar Ibrahim announced that 8.6 million recipients will receive up to RM650 each through STR Phase Three, an increase of 300,000 recipients compared to the 8.3 million beneficiaries in Phase One last January.

The rise in recipients reflects the government’s decision to open new applications and appeals throughout the year to ensure aid reaches all eligible individuals.

“The year-round application and appeal process demonstrates the Madani government’s commitment to its responsibility in improving the welfare of the majority, leaving no one behind in benefitting from the nation’s wealth.

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“More than just cash assistance, STR empowers recipients to achieve financial independence, helping us realise the equality envisioned in the Madani Economy,” he said in a statement yesterday, Bernama reported.

Anwar, who is the Finance Minister, said that the Phase Three payments will be made to existing and newly registered recipients in the STR database, either through direct bank account credits or cash disbursements via Bank Simpanan Nasio­nal, in stages according to their eligibility categories.

The Finance Ministry said applicants whose names are not found in the STR database must submit an application to allow verification of their eligibility for the aid.

Frequently Asked Questions and eligibility status checks are available on the official STR portal at https://bantuantunai.hasil.gov.my.

Meanwhile, Anwar attended a special preview of the Bollywood film Taj Mahal: An Eternal Love Story, during which he met the film’s director and producer, Akbar Khan, his long-time friend.

The PM spent about 30 minutes watching the epic film, which tells the timeless love story of Mughal Emperor Shah Jahan and his wife, Mumtaz Mahal, leading to the construction of the iconic Taj Mahal monument in Agra, India.

The large-scale production features original filming locations in India and cinematography that highlights the beauty of Mughal architecture, with a sparkling cast of Bollywood stars that included Kabir Bedi, Zulfikar Sayed, Manisha Koirala, Arbaaz Khan and Sonya Jehan.

Released in 2005, Taj Mahal: An Eternal Love Story was once considered among the most expensive Bollywood productions of its time and was marketed as a project showcasing India’s rich history and architecture to the world.

The screening at GSC, IOI Mall in Putrajaya, was also attended by Indian High Commissioner to Malaysia B.N. Reddy.