CiCM 28th July 2023

NEWS IN CHINA

During an inspection visit to Shanghai, Premier Li Qiang called for further efforts to enhance pilot free trade zones in order to achieve high-level openness and reform. This involves adhering to high-standard international economic and trade standards; fostering institutional opening; and reaching a higher level of liberalization and facilitation in goods trade. The construction of the Lingang Special Area in Shanghai was highlighted as a strategic effort by the Chinese government to further open up the economy and participate actively in economic globalization. The special area's goal is to develop a well-established institutional framework by 2025 that enables investment and trade; hosts open functional platforms; and becomes a cluster of world-class firms. Li also emphasized on the need of resolving cross-border data flow and encouraging creative growth in service trade.
In response to an increase in cases recorded nationally since June, China has launched a monkeypox preventive and control strategy. The National Administration of Disease Prevention and Control and the National Health Commission collaborated on the strategy, which focuses on the effective surveillance of medical institutions, important groups, and overseas arrivals. Local health departments and social organizations are urged to use their HIV/AIDS prevention experience to conduct peer education in specific locations. The plan also warns overseas travelers to be wary of monkeypox outbreaks in their locations. International immigrants are advised to monitor their health for 21 days, avoid close contact, seek medical assistance, and report symptoms if they occur if they have a suspect contact history in areas with monkeypox reports. According to experts, incidents will continue to rise in July and expand to other locations. The global danger of a monkeypox epidemic is now rated as moderate, with China rated as low. The primary mechanism of transmission for monkeypox is sexual or personal contact, and the afflicted population comprises primarily men who have sex with men (MSM). Monkeypox normally clears up in 3-4 weeks, and antibodies produced after infection can give protection for up to ten years. Avoiding unsafe sexual or personal contact is a key preventative tactic. Furthermore, China is aggressively researching the development of vaccinations against monkeypox, with the China National Biotec Group submitting clinical trials for a vaccine.
In the Bohai Sea, China's National Offshore Oil Corporation (CNOOC) has deployed self-developed marine seismic exploration and acquisition equipment called ‘Haimai’. This is a big step forward in China's advanced offshore oil and gas exploration technology, which is critical for securing a steady energy supply. The increased features of the equipment include better detection of weak signals, super sensitivity for capturing seismic signals underwater, and the capacity to offer high-definition oil and gas reservoir data. The instrument claims versatility, compact size, and strong collection performance, with an ultra-low frequency sensing ability that outperforms similar products globally by integrating land exploration geophone with ocean hydrophone technology. During operation, hundreds of "Haimai" nodes are placed methodically on the seafloor in accordance with design specifications, resulting in a vast information-collecting network spanning the ocean bottom. Each node functions as a "stethoscope" on the "acupoints" of seabed reservoirs, receiving and recording data from seismic wave signals reflected from the subsea strata. Following the completion of the process, the nodes are recovered, and the gathered data is downloaded and analyzed. The collected data is subsequently converted into seismic profiles, enabling exact "pulse diagnosis" of the subsea strata. This technique considerably improves China's capabilities in maritime oil and gas exploration, and it marks a significant advancement in the sector.
With the new restrictions on semiconductors in China by the United States, three major chip giants – Intel, Qualcomm, and Nvidia have met with US officials lobbying to abandon these export restrictions. They believe that such restrictions would limit their ability to do business in China. This concern further gained attention when US Secretary of Commerce, Gina Raimondo at a forum event today, admitted that US export controls to China would cost these American companies lost revenues. In order to minimize these consecutive losses, she recommended that the US would need to increase its investments in the ability to produce high-end chips while preventing the flow of state-of-the-art technology into China. Along these lines, Raimondo also claimed that the Biden administration has already made efforts by talking to relevant companies. Based on listening to the opinions of the US chip industries last week, she stated that this export control and its consequential loss for US companies were worth it, but they have to be carefully delineated. She highlighted the need for a safer and more resilient supply chain that benefits not only the US but also South Korea, Japan, and Europe. She further emphasized that the ‘Chinese threat’ could be dealt with by combined export controls and domestic incentives by the US and its allies.
Xu Qin, the Secretary of the Provincial Party Committee, presided over the 15^th collective study meeting of the Theoretical Learning Center Group of the Provincial Party Committee today which was held via video conference. The meeting was organized with the aim to study and implement the spirit of Xi Jinping’s ideas on cultural inheritance and development emphasized in his speech at the Symposium on Cultural Inheritance and Development. Xu Qin points out that the speech is “a document that gathers the Marxist truth, the full charm of the Chinese culture, and helps build a Chinese socialist cultural power.” He is of the opinion that if culture thrives, so will the country's prosperity. This very belief, he says, stems from the effective utilization of closed-loop work mechanisms, the enhancement of cultural talent development, and the reinforcement of policy support guarantees. Stressing the need for party committees and government at all levels to put cultural construction in an important position, Xu Qin invited greater contributions and achievements in cultural inheritance and development.
Number 5 Typhoon Doksuri made landfall, along the coast of Jinjiang in Fujian province, unleashing winds at a maximum of level 15. Doksuri is the most powerful landfall to happen in China this year and the destructive aftermath included damage to municipal facilities, flooded roads, and fallen trees, significantly impacting the localities. The localities were seen responding positively by gathering sets of equipment and rescue forces. According to a notice realized by the Central Meteorological Observatory at 12 pm, the typhoon is predicted to move toward the northwest at the speed of 30 kilometers per hour with a weakened intensity. The National Meteorological Center declared a red alert for the typhoon and maintained the Level-I emergency response which was launched yesterday. Adding to the response was the deployment of eight high-powered rescue vehicles and five helicopters by the Donghai Rescue Bureau of the Ministry of Transport. Doksuri is considered to be the second strongest to hit the Fujian province after Typhoon Meranti in 2016, resulting in evacuations and closure of schools and businesses.

SOCIAL MEDIA CHATTER IN CHINA

Influencer Zheng Kuaile's powerful response at splashing event earns unexpected support online: Zheng Kuaile, a Chinese influencer, earned unexpected internet support after a viral video showed her striking and kicking a guy who threw water at her during a splashing event. This occurred in the tourist town of Bailucang, in Shaanxi province. Zheng, who was not taking part in the event and was not holding a water gun, became enraged with the man, who stayed calm and did not respond. Musen, a male singer influencer with a significant following on Douyin, who had co-organized the event attempted to justify Zheng's conduct. Zheng later apologized online for "letting her fans down." But this was criticized by some calling it Zheng's "overreaction," while others supported her and denounced those who exploit such occurrences as a pretext to harass women. A dispute erupted over whether her actions were acceptable, with some claiming that the guy acted with remarkable control, while others believed she was justified in defending herself from possible harassment. Extreme activities, such as hitting someone with powerful water pistols, have sparked outrage online, and are often carried out by visitors rather than locals who participate in more symbolic and auspicious water sprinkling at such festivities. Especially in provinces like Yunnan, where water splashing celebrations do not permit to spray water at anybody or anywhere at will.

INDIA WATCH

A comprehensive set of measures targeted at supporting China's domestic industry has propelled the country's quest for semiconductor chip success. Beginning with the 2014 National Integrated Circuit Industry Development Guidelines, the government offered major financial support to local semiconductor businesses in the form of subsidies, tax breaks, and low-interest loans. Increased spending in research and development has been prioritized to support indigenous innovation and to encourage enterprises to create and safeguard their technology, and intellectual property protection has been reinforced, altogether creating a favorable climate for businesses to thrive in the country. These comprehensive measures indicate not only China's ambition to succeed in the semiconductor chip industry but also to minimize its dependency on international imports.

The semiconductor sector in India on the other hand, focuses on the semiconductor ecosystem as a catalyst for the Indian fast-growing electronics manufacturing and research environment. Evident through initiatives like the Semicon India conference of 2022, is India’s targeted, organized, and comprehensive efforts in the field. Under the Digital India Corporation, the India Semiconductor Mission was established as an autonomous business decision-creating and pushing India’s long-term plans on semiconductors. It is under this mission that the scheme for establishing display fabs in India, the scheme for setting up compound semiconductors, sensors fab/ OSAT facilities in India, and the design linked incentives scheme functions.

However, given the significant expenditures necessary to create production facilities, the fiscal assistance now planned for India's semiconductor sector is insufficient. Even on a lesser scale and with slightly older technology, semiconductor production facilities (fabs) can cost billions of dollars. Furthermore, chip fabs need enormous volumes of clean water and a consistent power supply. And in the case of chip design personnel, India lacks chip fab capacity and falls short of the most recent world standards. Hence, due to long gestation periods and quick technical changes, India must prioritize strategic design and functionality in order to flourish in the semiconductor business. India should lobby for a Quad Supply Chain Resilience Fund to protect the supply chain from geopolitical and geographic concerns. Furthermore, the government enhancing its investment in R&D, supporting local innovation, and cultivating competent individuals in semiconductor technology would boost the efforts. Financial incentives, tax exemptions, and subsidies may be offered to entice both domestic and international semiconductor businesses to set up shop in the country. Because of the complexity and competitiveness of the semiconductor ecosystem, implementing these proposals will need concerted efforts from the government, industry stakeholders, and academics, especially when India aims to be a global leader in semiconductor production, design, and research.

Prepared By

Anakha S Thampy

Anakha S Thampy is currently pursuing her dual Masters degree - an MA in International Studies from Symbiosis International University, Pune, and an MA in Sustainability Science from IGNOU. Having completed her Bachelor's in Political Science, she aspires to make a significant impact in society by becoming a Civil Servant. Her research focus revolves around the captivating realms of Asian area studies and the Sustainable Development Goals (SDGs).