CiCM 15th August 2023

NEWS IN CHINA

People’s Bank of China (PBOC), the country’s central bank, cut a key policy rate on Tuesday, in an effort to support the struggling economy. The bank cut the rate of the one-year medium-term lending facility (MLF) by 15 basis points from 2.65 to 2.5 per cent. The rate was lowered on 401-billion-yuan worth of MLF loans. The PBOC last cut the MLF by 10 basis points in June, making this the second time in three months such a cut was being announced by the central bank. The bank’s move has come on the back of slow economic growth- in the second quarter, China’s Gross Domestic Product (GDP) rose by only 0.8 percent, compared to a 2.2 percent growth in the first quarter. The PBOC also cut the seven-day reverse repo rate by 10 basis points to 1.8 percent. Experts have analysed the move to lead to a potential cut in loan prime rate (LPR) as well.
China has lodged its discontent with Japan over the sending of a ritual offering by Japanese Prime Minister Fumio Kishida to the controversial Yasukuni Shrine on Tuesday, according to the Chinese Foreign Ministry spokesperson Wang Wenbin. China views the shrine as a symbol of the military aggression of imperial Japan, which fought a war with China during the Second World War. The Foreign Ministry recalled how the Chinese people defeated the Japanese military aggressors and fascism to end the World War, while Kishida sent an offering to the shrine which honours the Japanese who died in the war, whom the spokesperson called “war criminals” in the statement. Wang also commented that Kishida’s move once again showed the “erroneous attitude” of the Japanese towards historical issues, urging the island country to “face up” to their history of aggression in order to resume normal relations with its Asian neighbours. The remark also comes as China commemorates the 78^th anniversary of the surrender of imperial Japan in the Second World War.
Chinese President Xi Jinping gave instructions for the Chinese society to “promote and act as role models” in practicing the concept that lucid waters and lush mountains are invaluable assets. Xi’s advise comes as China celebrates its first National Ecology Day on the 15^th of August. He also pointed out that ecological conservation is of vital importance for the sustainable development of the Chinese nation and called it a “major political issue” that concerned the mission and purpose of the Chinese Communist Party. He added that sustainable development also constituted a major social issue that had implications on the well-being of the public. Advancing ecological progress and promoting high-quality development in sync with high-standard protection was required in China’s journey to build a modern socialist country, Xi remarked, adding that the focus should be on carbon peak and carbon neutrality. He also called for the citizens to promote transition towards green and low-carbon production methods and lifestyles.
The National Bureau of Statistics announced that it suspended the release of youth unemployment rate from August. The Bureau’s spokesperson attributed the move to the “continuous evolution of economic and social development,” which necessitated improvements in statistical practices. Statistics concerning labour force also required further enhancement and optimization, according to the Bureau. The spokesperson pointed out that there were different opinions on whether college students should be included in employment analysis, and research was needed to consider extending the age period of defining a ‘young person,’ as they were now having longer schooling years. He also added that the body would improve its statistical methods to reflect the prevailing situation of China’s employment market. This June, the unemployment rate for the 16-24 age group had hit a record 21.3 percent. China had started publishing youth unemployment figures in 2018, however, data concerning youth unemployment in rural areas were not considered.
The Supreme People’s Procuratorate and the National Forestry and Grassland Administration released a guideline to improve the integration of law enforcement and judicature in forestry and grassland affairs. This is aimed to build a coordination mechanism for administrative law enforcement and the litigation framework, thereby creating a strong front against illegal acts that harm the concerned natural resources. Procuratorates and law enforcement agencies will focus on illegal acts in areas of forestry and grassland which infringe on “national or social interests”. Procuratorates nationwide are advised to address key issues concerning violations of public interests within forestry and grassland sectors. They are urged to initiate civil litigation for public interest cases even if authorities have fulfilled their duties. Additionally, these bodies should oversee the ecological rehabilitation efforts of wrongdoers, while seeking support from relevant authorities in matters like wildlife and plant restoration methods.
The National Health Commission (NHC), along with nine other departments, launched a one-year campaign on Tuesday to crack down on corruption in the healthcare sector across China. The authorities announced that the campaign was launched with the objective of “fostering an atmosphere of honesty and integrity” in the sector. The campaign aims to rectify malpractices such as accepting kickbacks and bribery. It would also cover several components of the medical sector, comprising medical institutions, medical societies and associations, medical insurance funds and “the entire chain of production, circulation, sales, use and reimbursement in the pharmaceutical industry”. The NHC added that the campaign would focus on individuals working in key positions in the medical sector, who have violated relevant rules. Since mid-July, Chinese authorities had been carrying out a sweeping anti-corruption drive in the public health sector, in which around 176 Party secretaries or heads of hospital were put under investigation.

SOCIAL MEDIA CHATTER IN CHINA

Netizens call out Visual China Group for making false copyright claims: On Tuesday, a photographer, Dai Jianfeng who runs the Weibo blog “Jeff's Journey to the Stars” published a post, accusing Visual China Group, a Chinese photo and media agency, of reporting him for infringement for using 173 photos taken by the photographer himself. Dai also alleged that the Group demanded compensation of 80,000 yuan from him. Visual China Group’s founder, Chai Jijun, responded to the allegation, saying that it was a mistake and the photographer had been communicated by the agency of the same. The allegation, however, sparked furore from social media users. The topic jumped to the trending list on social media platforms with more than 200 million readings. One Weibo user pointed out how Visual China had claimed copyright on multiple pictures on the public domain, including the Chinese flag and the logo of the Chinese State Council, adding that they hoped the company will go bankrupt soon.

INDIA WATCH

The decision of China's National Bureau of Statistics to suspend the publication of youth unemployment data, citing a need to enhance and optimize labour force survey statistics, suggests that the Chinese government might be concealing signs of its weakening economy under the guise of refining statistical methodologies. With approximately 11.58 million university graduates this year, the youth unemployment rate, which reached around 21.3 percent in June, was anticipated to increase this month. Since the onset of the COVID pandemic and the ensuing lockdowns, unemployment, including among young people, has generally surged to unprecedented levels. The burgeoning young and skilled population have often been seen as an asset for the Indian economy, signifying a robust workforce.In India, official unemployment data is released by the Ministry of Statistics and Programme Implementation (MoSPI) based on the Periodic Labour Force Survey (PLFS), initiated in April 2017. The latest government survey on unemployment, issued in May this year, indicated that India's urban unemployment rate for individuals aged 15 years and above declined to 6.8 percent during January-March 2023. A year prior, the rate stood at 8.2 percent, compared to 7.6 percent in the period from April to June 2022. Despite the modest positive improvement in urban youth employment, the PLFS report overlooks rural unemployment, which would likely present a distinct scenario due to the agricultural sector's inability to provide jobs. Moreover, there exists a scarcity of credible and substantial overall unemployment data from relevant authorities. This lack of data raises concerns about whether the country is effectively harnessing its substantial pool of skilled young individuals and reaping demographic dividends. A Mumbai-based think tank, the Centre for Monitoring Indian Economy (CMIE), issues monthly unemployment data, revealing that the total unemployment rate was 7.95 percent in July, down from 8.73 percent in June. Despite CMIE's efforts, the government has discredited the data released by this private organization, labelling it as "unscientific" and not conforming to international norms. It is imperative for Indian statistical bodies to consistently release unemployment rate data, enabling authorities to formulate policies that prioritize job creation, particularly outside the agricultural sector. According to recent CMIE data, the labour force participation rate is also declining. In light of these changes, it is crucial for government data to address these shifts by releasing reliable information. Similar to the Chinese statistical bureau, the Indian government should refrain from suppressing vital data by deeming current methodologies as "outdated". India's most significant asset, its youthful and skilled population, demands periodic surveys, trustworthy data, and well-informed policy decisions.

Prepared By

Prejomon Sunny Chummar

Prejomon Sunny Chummar holds a Master's degree in International and Area Studies from MMAJ Academy of International Studies, Jamia Millia Islamia, with a Bachelor's degree in Journalism and Mass Communication from EFLU Shillong. His interests revolve around the intersection of cinema, culture, and politics, including the intricate dynamics of soft power politics. Additionally, his scholarly interests encompass the rich histories and cultures of China, Russia and Central Asia. With a keen passion for cinema and literature, he is an ardent cinephile and devoted reader.