CiCM 7th February 2024

NEWS IN CHINA

Wu Qing takes helm at China's securities regulatory commission: The Communist Party of China Central Committee appointed Wu Qing as the new Party Secretary of China Securities Regulatory Commission (CSRC), replacing Yi Huiman. Simultaneously, Wu was appointed as the chairman of CSRC by the State Council, succeeding Yi. Wu, born in 1965, brings extensive experience, having worked in various CSRC departments, notably overseeing financial institutions and securities firms' risk management. Prior to his appointment, Wu served as deputy secretary of the Shanghai Municipal Party committee. The appointment marks his ascension as the 10th chairman of CSRC since its establishment in 1992. Following the announcement, A-share markets surged, with the Shanghai Composite Index rising by 1.44%, the Shenzhen Component Index by 2.93%, and the ChiNext by 2.37%. Total trading value across Shanghai and Shenzhen bourses surpassed 1 trillion yuan ($140 billion) for the first time in over two months.

Shanghai's foreign investment surpasses $20 billion for fourth consecutive year: In 2023, Shanghai made significant strides in enhancing its position as an international trade and consumption hub while also bolstering its foreign trade and investment landscape. The city prioritized elevating the energy of its international trade centre and fortifying its status as an international consumption hub. Notably, the successful hosting of the 6th CIIE (China International Import Expo) underscored Shanghai's commitment to fostering global trade, with record-breaking figures in enterprise exhibitions, exhibitor numbers, and intended turnover. Shanghai's total retail sales of consumer goods surged to 1.85 trillion yuan, showcasing its dominance in domestic consumption. Foreign trade stability measures led to a 0.7% increase in goods import and export, reaching 4.21 trillion yuan, while the total value of port trade rose to 10.66 trillion yuan. Shanghai's proactive foreign capital optimization saw a record-high utilization of US$24.087 billion and a 38.3% surge in new foreign-funded enterprises. Moreover, initiatives such as the "Silk Road E-commerce" cooperation pilot zone and various policy innovations contributed to Shanghai's resilience and adaptability in the face of economic challenges. The city witnessed a robust growth in retail sales, foreign trade volume, and foreign investment utilization, all indicative of its strengthened economic fundamentals.

China unveils fifth Antarctic research station, aims to enhance global polar science: China's newly completed Antarctic research station, Qinling Station, situated on Ross Sea Enksburg Island, marks a significant milestone in the country's Antarctic exploration endeavors. Spanning over 5,244 square meters, the station is designed to accommodate 80 summer expeditions and 30 wintering expeditions, symbolizing China's commitment to advancing scientific understanding and cooperation in the region. Foreign Ministry spokesperson Wang Wenbin emphasized that China's adherence to the Antarctic Treaty system underscores its dedication to conducting activities in accordance with international regulations, thereby addressing concerns raised by Australia and New Zealand regarding "intelligence security". Designed in the shape of the Southern Cross, with inspiration drawn from the navigational methods of Chinese explorer Zheng He, Qinling Station represents a fusion of tradition and modern scientific innovation. As the third perennial wintering research station established by China and the first to face the Pacific sector, Qinling Station will undertake comprehensive observations and research across multiple disciplines, including atmospheric and marine environments, and biological ecology, contributing to global scientific efforts in understanding and preserving Antarctica's delicate ecosystem.

Three-year strategy for achieving 'Dynamic Zero' in workplace safety risks: The State Council's Work Safety Commission unveiled a three-year plan aimed at achieving a "dynamic zero" of major accident hazards in China. The plan aims to eliminate previously identified major hazards by the end of 2024 and curb any increase in hazards by 2025. By 2026, a normalization mechanism will be established to maintain a dynamic zero-hazard level. The plan encompasses measures across eight areas, including enhancing hazard judgment systems, upgrading technology support, and conducting safety education and training. It emphasizes coordination between economic growth and safe production, establishing a full-chain responsibility system, and enhancing safety supervision capabilities. The plan targets curbing frequent major safety accidents by 2026. Despite annual declines in accidents and fatalities, recent incidents, such as coal mine explosions in Heilongjiang and Henan provinces, highlight ongoing safety challenges. The plan mandates enterprises to establish self-examination and correction mechanisms for hazards, with leaders leading regular inspections and personnel being held accountable for non-compliance.

China's solar industry booms with global expansion: In Shannan city, situated at an elevation of 4,994 to 5,100 meters in China's Tibet autonomous region, a solar farm with nearly 80,000 panels became operational, providing electricity for about 4,000 households. TrinaSolar's chairman, Gao Jifan, highlighted the project's use of ultra high-power components and rapid deployment. China's photovoltaic (PV) industry has undergone significant growth, with TrinaSolar's revenue exceeding 80 billion yuan in the first three quarters of 2023. The sector's expansion is driven by global green initiatives and China's "dual carbon" goals. Technological advancements, such as LONGi's record-breaking solar cell efficiency, propel the industry forward. PV integration into buildings and infrastructure, like on Dongyu Island, demonstrates innovative applications. Additionally, Chinese PV companies are establishing factories overseas, expanding the industry's global footprint. This trend fosters a shift from "made in China, sold globally" to "made globally, sold globally" model, emphasizing the need for high-quality industry ecosystems and international cooperation in green energy.

Recovered artifact returned to China by U.S. authorities: China's National Cultural Heritage Administration (NCHA) announced the successful retrieval of the stolen Western Zhou bronze vessel known as Feng Xing Shu Gui from the U.S., concluding its 40-year absence. The artifact arrived in Beijing on January 28 and was confirmed as a first-class cultural relic. Deputy Minister of Culture and Tourism Li Qun expressed gratitude during a ceremony in the U.S., highlighting the return's significance in implementing bilateral agreements. Collaboration between China and the U.S., including the signing of a memorandum of understanding to prevent illegal import of Chinese cultural artifacts, facilitated the return. The vessel, stolen in 1984 and recovered in 2023, was voluntarily returned by collector Raymond Kim and his mother, who were honored for their contribution. A ceremony in Portland, Oregon, recognized their act of kindness and underscored the cooperation's significance in cultural exchange between the two countries. Chinese Consul General Zhang Jianmin commended their efforts, emphasizing the event's role in strengthening China-U.S. friendship and promoting global cultural heritage protection.

National Smart Education Platform surpasses 100 million registered users: By the end of 2023, China's national smart education platform amassed over 100 million registered users, recording more than 36.7 billion views and welcoming 2.5 billion visitors. Zhu Dongbin, Deputy Director of the Ministry of Education's Department of Basic Education, highlighted the platform's comprehensive optimization and growth, particularly in primary and secondary school smart platform construction and resource provision. Li Yingli, Deputy Director of the Department of Vocational Education and Adult Education, emphasized China's focus on digital education advancement, including the promotion of lifelong learning and international cooperation initiatives such as the World MOOC and Online Education Alliance. Liu Jin, Director General of the Department of International Cooperation and Exchange, outlined plans for the 2024 World Digital Education Conference, focusing on themes like digital literacy enhancement, education digitalization, and artificial intelligence in education.

SOCIAL MEDIA CHATTER IN CHINA

Debate sparks over China's 'Harvard Girl' turned finance pro in the U.S: Liu Yiting, known as China's "Harvard girl," gained national fame in the late 1990s for winning a full scholarship to Harvard University. Her story, detailed in the book "Harvard Girl" authored by her parents, ignited a trend among Chinese parents to send their children to American universities. However, Liu's life trajectory, now as a financial professional in the U.S., has sparked debate in Chinese Social media over the definition of success. While some view her achievements as exemplary, others express disappointment that she has not achieved greater heights. Liu's journey reflects shifting attitudes towards success and parenting styles in China. The phenomenon of Chinese students studying abroad, known as hai gui or "sea turtles," has also evolved, with many facing challenges in the job market upon their return. Growing criticism of "jiwa" parenting, characterized by aggressive academic pressure, indicates a shift towards more holistic approaches to child-rearing.

INDIA WATCH

India's stock market is witnessing a surge in investment comparable to, if not matching, that seen in China. Despite facing challenges such as overpriced shares, impending elections, and regulatory uncertainties, both domestic and foreign investments are pouring into India's stock market at an impressive rate. The NSE Nifty 50 Index has seen a substantial rise of 33 percent in the last 10 months, coupled with $20 billion in foreign inflows in 2023. This surge in investment is indicative of investors turning to India as a promising alternative amidst the sluggish performance of Chinese markets and in anticipation of Prime Minister Narendra Modi's re-election. However, the market's rapid ascent has also led to concerns about its valuation. India's stock market has become one of the world's most expensive, with a forward price-to-earnings ratio three times higher than China's and surpassing even that of the U.S. S&P 500. This raises questions about sustainability and potential risks of a market correction. Simultaneously, India's Finance Minister Sitharaman has emphasized the importance of Foreign Direct Investment and its role in driving India's development, equating it with the notion of "first develop India." The surge in FDI inflows from $596 billion between 2014 and 2023 highlights a significant increase compared to the previous decade. However, renegotiating Bilateral Investment Treaties (BITs) with 37 countries using the restrictive 2016 Model BIT presents challenges, particularly due to its narrow definition of investment and omission of key principles such as 'fair and equitable treatment.' As India aims for substantial economic growth, experts stress the need for alignment with global investment practices to address negative perceptions and enhance negotiation effectiveness in BITs. This underscores the importance of striking a balance between attracting foreign investment and safeguarding national interests in India's journey towards economic development.

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.