CiCM 25th December 2023

NEWS IN CHINA

China's Cross-Border E-Commerce Thrives: China's cross-border e-commerce is thriving, fuelled by robust sales in various product categories such as clothing, shoes, and kitchenware to home decor. The government's supportive policies[AN1] , such as streamlining customs procedures, optimizing tax policies, and improving cross-border payment convenience, have fostered a favourable environment. Local initiatives, such as cross-border e-commerce parks and talent training, have also contributed to industry growth. Amid this, Pinduoduo's 2022 initiative to boost global reach for Chinese manufacturers has played a pivotal role. The platform collaborated with shipping companies to establish a fast cargo ship service, promoting eco-friendly practices with significantly lower carbon emissions than air transport. Bai Ming of the International Market Research Institute highlighted the cost efficiency and expanded transportability facilitated by sea transport. From January to September 2023, China's cross-border e-commerce recorded a 14.4% year-on-year expansion, amounting to 1.7 trillion yuan ($239 billion). The surge indicates the sector's resilience, connecting domestic and international markets and fostering growth, especially for smaller enterprises investing in cross-border e-commerce.

Hong Kong’s Civic Party set for dissolution in March 2024: March 2024 will witness the formal dissolution of Hong Kong's Civic Party, a prominent anti-government political entity, as it progresses through the final stages of its liquidation process. Former chairman Alan Leong Kar-kit announced the decision that the remaining funds, around HK$97,000 ($12,409), would be donated to the Community Chest of Hong Kong. Experts argue that the Party, initially positioned as a middle-class and professional entity, veered off course by adopting a pro-West, anti-communist stance. The party's alignment with radical forces during the 2019 protests and its involvement in organizing illegal "primaries" in 2020 led to legal consequences under the National Security Law for Hong Kong. After the electoral system reform, only patriots can be elected or nominated, making the Civic Party's controversial positioning obsolete. Several members, including former legislators, faced legal action, and internal dissent further contributed to the disbandment.
Shandong's successful operation of a 90-megawatt Solar Power project marks strides in Renewable Energy: A 90-megawatt solar power initiative has commenced operations in Sanzhuang town, Rizhao, Shandong province, leveraging barren hilly terrain to bolster rural development and curtail carbon emissions. The coastal city's ample sunlight powers photovoltaic panels spanning 310 hectares, providing an eco-friendly alternative to coal for electricity generation. This transition significantly mitigates CO2 emissions, marking a crucial step in China's commitment to environmental sustainability. Chu Xingtian, a project staff member, highlights the project's dual impact by explaining that the vacant spaces beneath the photovoltaic panels are utilized for cultivating honeysuckle. This agricultural integration not only contributes to local farmers' income but also exemplifies a harmonious coexistence of renewable energy initiatives with rural economic development. By tapping into the potential of barren land for solar energy generation and agricultural cultivation, the project not only advances China's green energy goals but also aligns with broader efforts to rejuvenate rural areas and create sustainable, multifunctional land use.
China's pioneering 3D shale gas exploration completes ahead of schedule: On December 25, PetroChina Southwest Oil and Gas Field Company reported the successful early completion of the three-dimensional geophysical exploration project in the Zi 201 well area, 10 days ahead of schedule. This project, initiated in 2020, focused on the QZS Formation shale gas reservoir, marking the first domestic geophysical exploration targeting new shale gas layers. Encompassing a vast 680-square-kilometer area, the endeavour utilized nearly 80,000 guns for acquisition. The achievement not only demonstrates efficiency in project management but also signifies advancements in domestic exploration techniques for shale gas reservoirs, contributing to the ongoing development of China's energy resources.
China affirms sovereignty amid South China Sea tensions with Philippines: During a press conference on December 25, Chinese Foreign Ministry Spokesperson Mao Ning addressed accusations made by Chinese official media against the Philippines. The media alleged that the Philippines repeatedly violated China's sovereignty in the South China Sea, spread false news, and collaborated with foreign forces to disrupt peace and stability in the region. Mao Ning emphasized China's unwavering commitment to safeguarding territorial sovereignty and maritime rights. The spokesperson highlighted the Philippines' actions in using issues like Ren'ai Reef to provoke disturbances and attract external intervention. In response, China has taken necessary measures to firmly counter these actions. Despite tensions, Mao Ning stated that China remains open to dialogue, emphasizing the willingness to address maritime-related issues with the Philippines through negotiation and consultation.
Beijing Hosts 2023 Cultural Finance Summit: The 2023 China Cultural Finance Summit, held in Beijing with the theme "Integration and Vitality," focused on deepening cultural and financial cooperation to enhance cultural prosperity. Guided by the Ministry of Culture and Tourism's Industrial Development Department and co-sponsored by Tsinghua University PBC School of Finance, the Dongcheng District Committee of the Communist Party of China, and the Dongcheng District Government, the event emphasized the need for long-term financial support in cultural tourism investment. Miao Muyang, director of the Industrial Development Department, highlighted the challenge of "difficulty and expensive financing" for small and medium-sized cultural and tourism enterprises, calling for collaborative efforts.In the first three quarters of the year, China's cultural and related industries reported a 7.7% YoY increase in operating income, reaching 9.1619 billion yuan. Domestic tourism saw substantial growth, with 3.67 billion trips and tourism revenue of 3.7 trillion yuan, marking a 75% and 114% YoY increase, respectively. The summit explored the synergies between the cultural and financial sectors, aiming to inject new vitality and creativity into the industry. Dongcheng District in Beijing and Ningbo City in Zhejiang Province were recognized as national cultural and financial cooperation demonstration zones. The summit included discussions on policy initiatives, financial mechanisms, and the release of the "China Cultural and Tourism Industry Investment and Financing Report (2023)" by Tsinghua University PBC School of Finance's Cultural and Creative Finance Research Center.

SOCIAL MEDIA CHATTER IN CHINA

15-Meter Dinosaur model sparks controversy in China, draws 7 million online views: A Beijing man, surnamed Tong, has lodged a complaint against his neighbour for placing a 15-meter-high dinosaur model directly opposite his home, labelling it "scary" and "mental torture." The neighbour, defending the installation, cited the enjoyment of children in the community and the 100,000-yuan (US$14,000) cost. Tong, feeling intimidated, stated that the dinosaur's presence was oppressive, affecting his sleep and daily life. The neighbour attempted a compromise by covering the dinosaur's head with cloth, but Tong insisted it wasn't sufficient, expressing fear and mental distress. Despite the backlash, the neighbour refused to relocate the model. The incident went viral, garnering nearly 7 million online views, One person suggested turning the dinosaur's head towards its owner's flat, while another emphasized the impact on the rights of other residents. This echoes a trend of residential disputes going viral in China, recalling incidents like a balcony-housed cow complaint and a gym teacher urging neighbours to exercise.

INDIA WATCH

As China reached a historic milestone with its cross-border e-commerce trade surpassing the 2 trillion yuan mark, India's e-commerce sector has witnessed significant growth as well, driven by increased internet penetration, smartphone adoption, and digital payments. The Micro, Small, and Medium Enterprises (MSMEs) sector, vital for the country's economy, has played a key role in this expansion, contributing to employment, economic growth, and poverty reduction. Government initiatives like "Make in India" and "Startup India" and budget allocations for MSMEs' digital infrastructure have also been indicators of strong government support. Moreover, Internet accessibility has also facilitated the emergence of online trade. The growth is evident as India's online shopper base is expected to reach 400–450 million by 2027, with the addition of 50 million new shoppers in 2021 alone. India's e-commerce export, currently valued at $1 billion annually, is projected to reach $400 billion over the next six to seven years, contributing to India's goal of $2 trillion in goods and services exports by 2030. Although, India's e-commerce market is still evolving with the potential to transform buying and selling, challenges to such large-scale development include a trade deficit and addressing changes in the export ecosystem, particularly for e-commerce exporters. Stakeholders are also advocating a revaluation of the foreign direct investment (FDI) policy for the inventory-based model of e-commerce. In essence, India's e-commerce sector shows great potential, and the government is actively working on policies and collaborations to unlock its full capabilities and contribute to the country's economic goals.

Prepared By

Elias Sebin

Elias Sebin is currently pursuing a Master’s degree in International Relations from South Asian University, New Delhi. His areas of research interest include the geopolitics and social dynamics of the Latin American, West Asian, and African regions as well as gender dynamics and intersectional feminism in South Asia. An avid traveller on a shoestring budget, his short fiction and travelogues have previously been published in several online publications including LiveWire, The Reading Room Co., and Gulmohur Quarterly.