CiCM 6th March 2025

NEWS IN CHINA

President Xi Addressed the Need for Educational Reforms: While addressing the CPPCC delegation from education sector at the Two Sessions, Xi Jinping emphasized that the national education system needs to be transformed to generate the scientific talent that is needed to achieve technology goals. He noted that it is the shared responsibility of the Communist Party members and the society to build a nation with strong education, science, technology and human resources. The education system should also create a cycle that will promote independent scientific innovation and the development of expertise. He highlighted the need to achieve breakthroughs in basic and multidisciplinary science, joint innovation projects by universities, enterprises and local governments. Xi further noted that education system must offer training which is more in alignment with socio-economic development needs. Moreover, he also called for better integration of higher and vocational education to tackle China’s demographic problems.

Several Proposals to Tackle Demographic Crisis in Discussion at Two Sessions: China is ramping up efforts to boost birth rates, with lawmakers and political advisors proposing reforms in maternity leave, subsidies and fertility protection, aligning with the 2025 Government Work Report. NPC deputy Tan Lin suggested extending maternity leave from 98 to 126 days, alongside longer paternity and parental leave. Another deputy, Chen Jing, proposed a maternity insurance fund shared by employers and the government, easing the burden on businesses. Political advisor Lu Weiying advocated for fertility assessments before marriage, helping young couples plan for childbirth while balancing careers. Another NPC deputy Ruan Xiangyan proposed that medical authorities strengthen regulations on fertility risks for patients undergoing radiotherapy, chemotherapy or ovarian surgery. The Government Work Report earlier reinforced support for childcare subsidies and public-interest childcare services. As per the National Health Commission, 23 provinces have already launched subsidy policies, and assisted reproductive treatments are now covered by basic medical insurance in nearly 20 provinces such as Beijing and Guangxi.

Alibaba Launches Its Own LLM to Compete with DeepSeek: Alibaba Cloud has unveiled Tongyi Qianwen QwQ-32B, an open-source large language model with performance comparable to DeepSeek R1 despite having 21 times fewer parameters (32B vs. 671B). The model excels in mathematical reasoning and coding, while significantly reducing deployment costs and enabling efficient use on consumer-grade hardware. Equipped with AI agent capabilities, QwQ-32B can think critically, utilize tools and adapt reasoning based on feedback, making it a versatile AI solution. This launch aligns with Alibaba’s broader strategy to expand AI investments over the next three years with an investment of RMB 380 billion, focusing on AI infrastructure, foundation models and native applications. As per Alibaba, Qianwen QwQ-32B can reduce deployment and usage costs while maintaining strong performance. It also further clarified that the model can also be deployed locally on consumer-grade graphic cards.

NDRC Head Outlines Strategy to Promote Innovation: China will establish a national venture capital guidance fund to support innovative enterprises, reinforcing its push for new quality productive forces and innovation-driven growth, according to Zheng Shanjie, head of the National Development and Reform Commission. The initiative follows the Government Work Report, which emphasized balancing new growth drivers while upgrading traditional industries. During the press conference on the sidelines of ongoing Two Sessions, Zheng announced that China will introduce sector-specific policies to phase out obsolete production while expanding high-end capacity to align supply with market demand. He cited institutional strengths, market potential and corporate vitality as key enablers, alongside the government's ability to address risks proactively. He also announced that an action plan for consumption growth will be rolled out soon to boost domestic demand. The private sector will be encouraged to invest in emerging and future industries, while the government focuses on major projects in railways, nuclear power, water conservancy and tech infrastructure. China’s "three new" economy—covering new industries, business formats, and models—accounted for over 18 percent of GDP in 2024, highlighting the rapid expansion of emerging industries.

Commerce Minister Wang Clarifies Position on US Tariffs: During the press conference at the Two Sessions, Chinese Commerce Minister Wang Wentao criticized U.S. trade protectionism and unilateral tariff measures, stating that trade wars have no winners and harm global economic stability. Wang condemned additional U.S. tariffs on China, particularly those linked to the fentanyl issue, calling them unfair and misleading. He highlighted the escalating U.S. trade restrictions, including steel and aluminium tariffs, 301 tariff investigations and port fees targeting Chinese industries. Wang argued these actions violate WTO rules, disrupt global supply chains and ultimately hurt U.S. businesses and consumers. He mentioned that despite tensions, Sino-U.S. trade grew by 18% since 2017, with nearly half of U.S. companies in China reporting strong profits. Wang stressed that economic cooperation benefits both nations, urging the U.S. to act responsibly rather than resorting to coercion. Wang argued that he had written to U.S. officials, proposing dialogue and consultation to resolve disputes. He called for both sides to follow the direction set by their leaders, manage differences and foster mutual respect and cooperation for a stable and sustainable economic relationship.

SOCIAL MEDIA CHATTER

Sale of So-called Fortune-changing Soil Sparks Online Discussion: Several Online platforms in China have come under scrutiny for selling so-called bank soil, claiming that it was dug up from outside major Chinese banks and can bring wealth and good fortune to buyers. The product, which is trending online, is claimed to have been sourced from green belts outside banks, potted plants in bank lobbies or even dust from money counting machines. One online vendor offers four types of soil, and claimed that it was collected from five major banks - Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank and Bank of Communications, with the cheapest portion costing just 24 yuan (US$3). Some online shops even posted videos of soil being dug up to prove its authenticity. The bizarre product has sparked discussion on mainland social media. One netizen commented, “what is this bank soil? I work at a bank, and I have to bring my own soil from home to plant flowers in the office”. Another netizen joked that he lives close to the bank but his fortune hasn’t improved. Another commented that Bank soil might not be authentic, but the “intelligence tax” is definitely real.

INDIA WATCH

Chinese Media Reports on the Slump in the Indian Stock Market: An article in the Chinese media reports on the recent fall in the Indian stock market index. The article argues that foreign investors have continued selling which has caused the National Stock Exchange (NSE) Nifty50 index to decline for 10 consecutive days, amidst concerns over India’s slowing growth and overvalued stocks. The article claims that the massive withdrawal of global funds is the main reason for the decline of the stock market index. In recent months, foreign investors have withdrawn nearly $14 billion from the Indian market. Moreover, the article argues that the recovery of the Chinese market and the strengthening of the US dollar have further weakened the attractiveness of the Indian assets. It points out that the proportion of small and medium-sized investors in cash stocks of the NSE fell to a nine-month low in January. The article speculates that most of the investors in India are novices and have never experienced a bear market or a drastic fall in the market before. Moreover, it claims that the Indian market is experiencing significant adjustments, with investors worried about slowing growth and external uncertainties. Lastly, the article highlights some key economic challenges such as low corporate investment and weak urban consumption for the revival of India’s capital market.

Prepared By

Ruchir Ketkar

Ruchir Ketkar is a First year student pursuing Masters in Diplomacy, Law and Business at OP Jindal Global University. After completing graduation in Political science, he found his interest in International Relations and Global Affairs. With a keen inclination towards security and conflict studies, he has also authored several articles and research papers. He also tries to keep himself updated with the happenings around the world and tries to analyse them using his perspective and understanding.