CiCM 12th January 2024

NEWS IN CHINA

Hong Kong introduces new security bill as fears of widening crackdown gain ground: Hong Kong's government on Friday tabled national security legislation. The bill claims that the legislation is needed to eradicate dissent in the city and extend an ongoing crackdown on public speech and political activism under a law imposed in 2020 by Beijing. According to the agenda entry, the bill will complete and improve the existing laws safeguarding national security and make provisions for related matters. Former security chief and executive Council convenor Regina Ip, who also presided over the unsuccessful attempt to introduce similar legislation in 2003 has welcomed the legislation. The move comes during a time of a citywide crackdown in which more than 10,000 people have been detained and at least 2,800 have been sentenced in relation to the 2019 protest movement, mostly under the charges of public order.
MOST releases National Innovative Cities Innovation Capacity Evaluation Report 2023: The Institute of Science and Technology Information of the Ministry of Science and Technology recently released the "National Innovative Cities Innovation Capacity Evaluation Report 2023". The top 10 cities in the national innovative city rankings are Beijing, Shanghai, Shenzhen, Nanjing, Hangzhou, Wuhan, Guangzhou, and Xi'an. Suzhou, Hefei, and the Yangtze River Delta region. National innovative city refers to a city with strong independent innovation capabilities, outstanding scientific and technological support and leading role, high level of economic and social sustainable development, and significant regional radiation and driving role. An overarching evaluation of innovative cities is carried out using 30 indicators from five major aspects, including innovation power, achievement transformation power and innovation driving force. Beijing’s innovation capability index is 95.84 and Shanghai's innovation capability index reached 86.66.
The seventh batch of foreign investment projects launched by National Development and Reform Commission: China's National Development and Reform Commission has launched the seventh batch of major foreign investment projects to strengthen the foundations of foreign investment by playing a primary role in exhibiting important foreign investment projects. This year the selected projects involve biomedicine, automobile manufacturing, new energy batteries, chemical industry and other areas. It comprises 11 foreign-invested projects, covering the Shanghai Moderna Pharmaceutical R&D and Production Base and Jiangsu Taizhou Xinpu Chemical High-End Chemicals Project. The number of projects is the largest this year. The total planned investment for the new batch of projects surpasses 15 billion US dollars. The first six batches that involved 40 major foreign-invested projects had a total investment of US$73 billion. Out of these, 23 projects have been put into production, fully or partially.
Safety accident occurred at Tianan coal mine: On January 12, reporters received information from official channels in Pingdingshan, Henan, that a safety accident has occurred at Tianan Coal Mine No. 12 and some people have gone missing. According to reports a coal and gas outburst accident took place in the outer section of the air inlet tunnel. The accident led to many trapped people and authorities have lost contact currently. The Pingdingshan Municipal Government has organised multiple departments to respond to the scene and carry out rescue operations. The on-site rescue and investigation of the specific cause of the accident are ongoing.
Sale of vehicles on the rise in China, says China Association of Automobile Manufacturers: According to official estimates, China produced a total of 30.161 million and sold 30.094 million vehicles in 2023, with yearly increases of 11.6 percent in production and 12 percent in sale. China Association of Automobile Manufacturers (CAAM) stated that the production and sales volume set a new record. New energy vehicles maintained their momentum in both production and sales, reaching 9.587 million and 9.495 million, respectively, with yearly increases of 35.8 percent and 37.9 percent. The market share has reached 31.6 percent, which is an increase of 5.9 percentage points compared to the same period last year. Automobile exports reached new heights. In 2023, automobile exports reached 4.91 million vehicles, a yearly increase of 57.9 percent. This has contributed 55.7 percent to the overall growth in automobile sales. CAAM expects the automobile market to continue the trend of stable and positive development in 2024, while predicting a growth rate of over 3 percent.
China and US form a working group for climate action: Through a video link, China and the United States conceptualised a Working Group on Enhancing Climate Action. This working group has been formed for the execution of the consensus reached between the heads of state for both US and China during their San Francisco meeting. It aims to strengthen the cooperation between Beijing and Washington to fight climate change. Key cooperation areas including energy transition, methane, circular economy, and low-carbon provinces were discussed. With the help of the working group mechanism, both parties expressed their desire to closely co-operate and work together according to the consensus reached in the Sunnylands Statement on Enhancing Cooperation to Address the Climate Crisis.

SOCIAL MEDIA CHATTER IN CHINA

The death of a delivery person leaves the Chinese social media talking about the condition of the low-wage earners in China: On an evening in December, delivery driver Li Yuekai, a delivery rider, was confronted by security guard Zhao Li at the entrance of the Zhonghai International Yilicheng community in Qingdao, Shandong province in northern China. Camera footage revealed Li arriving near the entrance when Zhao, a security guard, left the security booth and approached him. After a small conversation, Zhao reached for a knife from his belt and stabbed Li in the chest consequently killing him. A community office staff has said that the quarrel started in relation to the policies about delivery riders entering the complex. The security guards working in these luxurious residential complexes earn a salary of a mere 3,700 yuan (US$520) a month and face a 50 yuan fine for any unauthorised entry. The incident has highlighted the plight of low-income workers in China. People have been expressing their sorrow over social media.

INDIA WATCH

The Indian auto market is one of the fastest growing in the world. RC Bhargava, Chairman, Maruti Suzuki India (MSIL) said that India will become the top automobile manufacturer in the next five years. For India to compete with China in the realm of automobile manufacturing, it needs to take a few lessons from China. India must prioritise developing a more robust, self-sufficient supply chain to facilitate the automobile industry and guard it from any geostrategically generated bottleneck in the global supply chain. The country must strive to make its automotive landscape immune to the shifts reshaping the auto industry. Simultaneously, India also needs to provide incentives to the automobile industry in the form of tax exemptions, subsidies and loans specially designed for vehicle manufacturing. A special emphasis on EV manufacturing is of prime importance. In several major cities of China, including Beijing and Shanghai, EVs are exempt from lotteries for number plates and registration fees that apply for cars with internal-combustion engines. The country also subsidises EVs. A 2017 McKinsey&Company report discussed why China has emerged as a leader in both the supply of and demand for EVs. On the supply side, China’s government created favourable conditions for EV stakeholders and investors. As for demand, China’s high marks are evidenced by the number of vehicles sold and the variety of choices available. With policy interventions like waiver on road tax on EVs and PLI scheme for the automobile sector, India is set on the right path.

Prepared By

Aachal Ashok Mishra

Aachal completed her graduation in Political Science from Banaras Hindu University. Currently she is pursuing her master's in Political Science from IGNOU. Her areas of interest revolve around international relations, foreign policy dynamics, defence and security. She has previously interned with the Council for Social Development and the Centre for the Study of Developing Societies.