CiCM 4th October 2023

NEWS IN CHINA

China expressed discontent with Europe’s anti-subsidy probe: A recent investigation to consider imposition of tariffs on Chinese electric vehicles by the European Commission (EU), has caused dissatisfaction in China and strained the relationship between the two sides. With an increase in China’s overcapacity and share of Chinese electric vehicles sold in Europe, the investigation is believed to be aimed to shield European producers from an influx of cheap imports of Chinese electric vehicles. China's Ministry of Commerce (MOC) has voiced its dissent of the probe which alleges state subsidies, and other allegations that lack substantial evidence and contradict WTO regulations. The Ministry also emphasized that the Commission requested swift consultations from China but failed to provide effective materials, thereby compromising China to protect the legitimate rights of Chinese companies. The China Association of Automobile Manufacturers also reported the investigation as an evident act of protectionism, expressing concerns about its impact on the global electric vehicle industry. China also emphasized its vigilance in monitoring the EU Commission’s investigative procedures and effectively apply trade remedies.

Taiwan accused China of ‘diverse ways’ to interfere in elections: Taiwan has accused China of employing a diverse range of tactics to interfere in its upcoming elections. The Taiwan National Security Bureau Director-General Tsai Ming-yen, revealed that they are particularly concerned about the possibility that the Chinese Communist Party is cooperating with Taiwanese polling and public relations companies to manipulate voters and elect an official favourable to the Chinese side. One of the frontrunners in the upcoming elections is William Lai, the vice president of Taiwan's government, who advocates for Taiwan's distinct identity from China. According to opinion polls, he is the potential candidate to become the next president, but China views Lai and his party as separatists and has repeatedly rejected their offers for dialogue. With the increase in China’s presence in and around Taiwan, the presidential candidate has maintained the stance of an independent Taiwan whose status should be determined by its Taiwanese people only. However, official remarks have indicated that they are wary of the fact of how China could use fake news to create ‘war’ or ‘peace’ in an attempt to misguide the voters.

U.S. targets China for Fentanyl supply chain: The United States has imposed sanctions on 25 Chinese firms and individuals allegedly involved in the production of chemicals used to manufacture the potent opioid, fentanyl. US Attorney General Merrick Garland stated that the fentanyl supply chain often originates from chemical companies in China, which has contributed significantly to the ongoing drug crisis in the US. Further, the US Justice Department has indicted eight Chinese companies and 12 of their employees for crimes related to fentanyl production, opioid distribution, and precursor chemical sales. The Chinese foreign ministry criticized the US sanctions, and reiterated how it has undertaken efforts to combat drug-related crimes and control opioid chemical production. Notably, no arrests have been made, and the Chinese government maintains that it did not collaborate with US authorities on these investigations. But increasing interagency efforts against fentanyl trafficking would continue as the overdose of drug has become the prominent cause of deaths in the U.S.

China’s economic surge due to ‘Golden Week’ holiday: During this National Day holiday week, which started on September 29, China has witnessed a boom in its tourism sector, with a total of 53.4 million passengers travelling across the country, as reported by the Ministry of Transport. With domestic travel booming, China’s official manufacturing purchasing manager’s index (PMI) rose to 50.2 points indicating growth from the earlier 49.7 mark in August, witnessing increase for the first time since March, according to the National Bureau Statistics of China. The top destination for hundreds of thousands of tourists was Macau, a semi-autonomous city and the sole location in China where casinos operate legally. Hong Kong also remained a prominent travel destination, with Chinese tourists well-prepared and financially secured to spend at levels comparable to those before the pandemic. This has led to a significant surge in travel despite the country's economic slowdown, and experts suggest that by bolstering the local economy, retailers abroad may pump in more investments for the return of Chinese tourists.

China launches digital RMB ‘FPS’ fast payment system: At the Hangzhou Asian Games, members of the Hong Kong delegation experienced the newly launched digital Chinese currency RMB ‘FPS’ fast payment system which helped them conveniently set up a digital RMB wallet and the option to recharge and on-the-go top-up. The digital RMB app was praised by the athletes of Hong Kong who highlighted the simplicity and convenience of the app, as well as making seamless purchases by the ‘scan’ option within the Asian Games Village. This system eliminates the need for exchanging RMB and preparing cash, saving valuable time and simplifying the process for residents. The initiative, a collaboration between the Digital Currency Research Institute of the People's Bank of China and the Hong Kong Monetary Authority, allows Hong Kong residents to recharge their digital RMB wallets using accounts from local banks such Bank of China, ICBC (Asia), BOC Hong Kong, HSBC etc. This approach ensures greater control over transactions, streamlining the process and reducing both the length’of the transaction link and associated costs.

SOCIAL MEDIA CHATTER IN CHINA

Chinese basketball Captain Zhao Jiwei apologizes to fans: After a stunning upset of the Chinese team by the Philippines in the basketball semi-final at the Hangzhou Asian Games, the Chinese head coach Aleksandar Djordjevic took the stage to express disappointment after the match and acknowledged the key areas where China fell short. Many commentators in the press conference were heard questioning the coach’s method. Team Captain Zhao Jiwei defended Djordjevic’s coaching methods, and emphasized the need for players to take accountability for their performance and work on execution. He also apologized to everyone on behalf of the whole team to which many netizens shared the goodwill of the coach with the hashtag #赵继伟道歉(#Zhaojiweiapologizes). Netizens also came in support of his statement and expressed that the responsibility for losing lies on everyone in the team instead of one person. Some of them even questioned whether the media is too afraid to offend the players and instead blame the coach without mentioning the ability of the players. This was accompanied by a hashtag #MenbasketballlosestoPhilippinesMensBasketball, reflecting the disappointment felt by Chinese basketball enthusiasts but many of them sharing the sentiment that you cannot blame the coach for losing a game.

INDIA WATCH

Where are the Chinese tourists in India? With the current surge in Chinese tourists visiting places in Southeast Asia like Thailand, and countries like Japan, the ‘Golden Week’ holiday moment has seen less or almost negligible Chinese tourism boom in India. Tourism plays a key role in revenue generation, cultural exchange and indirect employment opportunities in tourism related sectors for a country. India with its shifting focus on soft power diplomacy has a rich cultural heritage with many people being familiar with names such as Bollywood, yoga, ayurveda, heritage sites such as Taj Mahal, and India’s distinctive cuisine. Particularly, for the East Asian tourists, India has a lot to offer as the birthplace of Buddhism. In terms of employing Buddhist diplomacy, India can notably attract Chinese tourists and achieve economic goals by featuring cross cultural exchanges. However, this anticipated influx of tourists has failed to materialize partly due to the strained military and political relationship between the two countries. With less promotion of Indian soft power symbols in China, and few reports of racism in India against ‘Chinese characteristics’, there has been a negative perception among the people of both countries. As China once again regains its position of the world's primary source of international travellers within Southeast Asia, India needs to take advantage of this surge. Chinese tourists can contribute substantially to India’s economy as they hold the reputation of being enthusiastic spenders. This can also have a profound impact on fostering people-to-people ties between both countries.

Prepared By

Taru Ahluwalia

Taru Ahluwalia completed her Post-Graduation in East Asian Studies from the University of Delhi and her Under-Graduation in English from Lady Shri Ram College for Women. She aims to decode the enigma that is East Asia and examine its geopolitical re-positioning in today’s world. She holds a diploma in Korean Language and aspires to learn Chinese one day.