CiCM 19th December 2023

NEWS IN CHINA

28th meeting of Chinese and Russian Prime Ministers was held: China and Russia are fortifying their economic ties with a new trade deal, marking Russian Prime Minister Mikhail Mishustin's second visit to China this year. An agreement was made between the finance ministers of both countries which includes enhanced oversight of capital flows and bonds, showcasing the depth of their financial cooperation. Mishustin highlighted the unprecedented level of Russia-China relations and pledged to deepen cooperation in economics, trade, energy, investment, and people-to-people exchanges. Building on this positive momentum, the two sides agreed to further expand cooperation in agriculture, ensuring joint efforts to maintain energy security, enhancing connectivity, fostering personnel exchanges, promoting local cooperation, and safeguarding the security and stability of industrial and supply chains. Trade between the two nations exceeded $200 billion for the first time, reaching $218 billion in the first 11 months of the year. The leaders signed a joint communique and witnessed the signing of several bilateral cooperation documents, solidifying their commitment to comprehensive strategic partnership and global stability. The two nations also signed a memorandum of understanding on aligning audit processes and sharing experiences in public finance, taxation, and budgeting.

China's Lithium plant in Bolivia was inaugurated: In a significant development for Sino-Bolivian economic ties, a completion ceremony was recently held for the Bolivian lithium carbonate plant project, contracted by Chinese enterprises. The project, situated in the expansive Uyuni salt marsh area, saw China Machinery Engineering Co. Ltd. (China Set-up Group) as the primary contractor, with the Dalian branch of China Railway Nine Bureau overseeing civil engineering. The Uyuni salt marsh, located in the southern Bolivian province of Potosi, is a key focal point for its vast lithium reserves, exceeding 21 million tons. The successful commissioning of the lithium carbonate plant is a crucial step in harnessing these resources for Bolivia's economic growth. This development aligns with China's broader strategic interests in securing access to essential resources and fostering economic partnerships across the globe. China's role as a major contributor to Bolivia's lithium project highlights the depth of bilateral cooperation and underscores China's commitment to supporting the industrialization and economic development of partner nations. This venture also strengthens China's position as a key player in the global lithium market, securing access to a critical resource for the production of batteries, a vital component in the rapidly growing electric vehicle industry.

A catalogue of ancient Chinese medicine books was released: A total of 8,650 ancient Chinese medical books, dating back to pre-1912, are compiled together in “The New General Catalogue of Ancient Chinese Medicine Books”, which was released in Beijing on Tuesday. These books have been meticulously gathered by 379 collectors across the nation. These books play a crucial role as carriers of traditional Chinese medicine (TCM), serving both as a foundation for TCM knowledge and a wellspring for academic advancements. The "Opinions on Promoting the Work of Ancient Books in the New Era," released in 2022, emphasizes the need to distill the essence of classical medical literature. Over the past half-century, the Institute of Traditional Chinese Medicine Information at the Chinese Academy of Traditional Chinese Medicine has conducted three national surveys and compiled bibliographies of ancient Chinese medicine books. The recently published "New Compilation of Ancient Chinese Books" offers a comprehensive overview, refining classification, broadening inclusion criteria, and providing valuable insights into the roots of Chinese medicine. This compilation opens up opportunities for sharing of academic research and resources, contributing to the preservation and dissemination of ancient Chinese medical wisdom.

State Council Committee fast-tracks national market construction: Premier Li Qiang chaired an executive meeting of the State Council, where he received a comprehensive update on the progress in expediting the construction of a unified national market. Acknowledging the vital role of a national unified market in fostering domestic economic cycles and promoting the new development paradigm, the meeting underscored the imperative to enhance fundamental systems such as market access, property rights protection, trading mechanisms, data information, and social credit. The meeting emphasized the need for a new round of fiscal and tax reforms and highlighted the importance of actively and steadily promoting key reforms in areas such as finance, taxation, and statistics. The meeting also approved draft regulations on safe coal mine production and revisions to certain administrative regulations and decisions of the State Council, acknowledging the challenges posed by recent adverse weather conditions across the country. Various other pertinent issues were also deliberated upon during the meeting.

China expands its 5G base stations network: In the dynamic landscape of China's telecommunications industry, the period from January to November 2023 has seen remarkable developments. Notably, the total telecommunications business has surged by 16.6% year-on-year, reaching 1554.8 billion yuan during this timeframe. In terms of revenue distribution, fixed Internet broadband demonstrated steady growth, contributing to 15.5% of telecommunications business revenue, with a year-on-year increase of 8.5%, amounting to 240.4 billion yuan. Internet of Things (IoT) business revenue also increased by 22.7% year-on-year. However, the traditional voice services continued to face challenges, with fixed and mobile voice revenues declining by 6.6% and 4.9%, respectively, during the same period. Mobile subscribers have steadily increased, reaching 1.726 billion by the end of November. Notably, 5G mobile phone users accelerated, reaching 771 million and accounting for 44.7% of mobile phone users—a significant 11.4 percentage points higher than the previous year. Regionally, all areas in China are actively promoting 5G construction and application, with substantial 5G base station numbers in the East, Central, West, and Northeast regions. Beijing-Tianjin-Hebei and the Yangtze Delta regions, in particular, have played a significant role, contributing to 31.4% and 31% of the total mobile phone base stations, respectively.

Huawei partners with Thailand to propel AI Hub Ambitions: Chinese tech giant Huawei has entered into a memorandum of understanding with Thailand's Ministry of Digital Economy and Society to collaborate on establishing the country as a regional artificial intelligence (AI) hub. The partnership, announced at the Huawei Cloud AI Summit Thailand 2023, focuses on advancing AI development, industry applications, ecosystem building, and talent cultivation. This initiative is poised to help Thailand become a key player in the AI space through digital transformation and smart city strategies. Huawei showcased tailor-made AI solutions at the summit, signaling its commitment to support Thailand's digital ecosystem. The partnership aligns with Thailand's "Go Cloud First" policy, emphasizing collaboration with private cloud providers like INET, AWS, Microsoft, and Huawei to boost the country's digital industry, which is expected to contribute 30% to Thailand’s GDP by 2027. Huawei also pledged to train 10,000 digital power engineers and 20,000 cloud developers over the next three years to support Thailand's journey towards a fully intelligent, connected, and sustainable digital economy.

SOCIAL MEDIA CHATTER IN CHINA

Chinese Social Media Reacts to Gansu Earthquake: As news of the 6.2 magnitude earthquake in Gansu province continues to unfold, Chinese social media platforms are buzzing with reactions, updates, and expressions of support. Weibo is flooded with posts lauding the soldiers and emergency responders who are on the front lines, embodying the spirit of "soldiers first, veterans first, firefighters first, police first, doctors first." Their immediate presence brings a sense of security in times of crisis. Videos of the soldiers rescuing children out of debris is also being circulated. Photos and videos showcasing the use of Liberation Army field tents in the earthquake-affected areas have also gone viral. The military's role in providing shelter and support is widely appreciated, with citizens expressing gratitude and solidarity. Condolences The earthquake has garnered international attention, with Japanese Prime Minister Fumio Kishida expressing condolences and offering support. Weibo users are actively sharing information on the earthquake, praying for the safety of those affected, and expressing condolences for the lives lost. Some are reminiscing about past earthquakes and emphasizing the importance of swift and effective rescue operations.

INDIA WATCH

India's pursuit of becoming a vibrant electric vehicle (EV) industry is facing both challenges and opportunities in the evolving landscape of the global lithium market, especially in comparison to China. The ramifications of China's extensive investment in its lithium battery industry have begun to reveal potential fault lines such as overproduction and environmental consequences. As India seeks to position itself as a significant player in the EV supply chain, recent discoveries of lithium reserves in Rajasthan's Degana and Jammu and Kashmir have the potential to reshape the nation's trajectory towards energy independence and reducing dependence on China. With a commitment of at least $3.4 billion in incentives, the Indian government aims to accelerate EV adoption, making the end product more affordable for the mass market and potentially turning the country into an EV exporter. Reliance has already invested in EV battery facilities, contributing to the nation's ambitious $76 billion push into clean energy. However, India faces significant challenges, particularly in securing robust supply chains and recycling capabilities. The country currently lacks the raw materials needed to meet the forecasted 100-fold growth in demand for lithium-ion batteries by 2030. China's strategic presence in global supply chains, including agreements with major lithium-producing nations, adds to the complexities. The newfound lithium resources offer a unique opportunity for India to become self-reliant, manufacture its own lithium cells, and establish independent refining processes. The discovery of lithium reserves positions India as the sixth-largest globally, creating possibilities for the nation to play a pivotal role in the lithium market.

Prepared By

Riddhima Singh

Riddhima Singh is a final year student at Jawaharlal Nehru University Delhi, pursuing Chinese Honours course. Through her degree she has had the opportunity to dive into culture, history and contemporary issues in Chinese society through language and research. Her research area surrounds the economic and fiscal policies of Communist Party of China and China's development model.