CiCM 7th March 2024

NEWS IN CHINA

Second Plenary Session of 14^th CPPCC National Committee: The Chinese People’s Political Consultative Conference (CPPCC) held its second plenary meeting of the annual session, during which members of the 14^th National Committee delivered speeches. Chaired by Wang Huning, the meeting witnessed the attendance of several Party and State officials, who listened to speeches delivered by 14 members of the CPPCC’s National Committee. Speeches focused on a variety of topics, like high-quality development, national financial security, integrated development of the Yangtze River Delta, agricultural modernization, university education for talent cultivation and balanced population development. Party officials and Politburo members like Zhang Guoqing and Shi Taifeng, along with members of the State Council, were present to listen to speeches by members of the National Committee.
Former PLARF Commissar Xu Zhongbo Makes First Public Appearance at PLA Plenary Session with Xi Jinping in Attendance: Xi Jinping attended the Plenary meeting of the PLA and Armed Police Force (PAP) delegation at the second session of the 14^th National People’s Congress, chaired by CMC Vice Chair, Zhang Youxia. Representatives from various departments and branches of the armed forces made speeches as Xi listened on and occasionally interacted with representatives. Xi made a speech on the need to implement plans related to strategic capacity building and coordinate preparations for maritime military struggles. All members of the Central Military Commission except Miao Hua were present at the plenary session. Interestingly, the delegation of PLA and PAP members in attendance included former political commissar of the PLARF, Xu Zhongbo, who disappeared from public view in July 2023. This is his first public appearance since he was dismissed.
Constitution and Law Committee Reviews Organic Law and Financial and Economic Committee Reviews Budget: The Constitution and Law Committee of the 14^th People’s Congress conducted a review of the draft revision of the Organic Law of the State Council. Members of the Committee unanimously agreed that amending the law was an inevitable requirement of the functioning of Party and State institutions. The amendment includes 20 articles, which state that the State council will closely follow the Party’s ideology and instructions, be guided by Marxism-Leninism and State Council members shall resolutely safeguard the authority of the Central Committee. The amendment, expected to be passed on the last day of the NPC, is the first change to the State Council law since 1982. Meanwhile, on the morning of 7^th March, the Financial and Economic Committee of the NPC held a review of the National Economic and Social Development Plan in 2023 and 2024, along with a review of the central and local budgets in 2024. The Committee also put forward eight suggestions for the implementation of the 2024 National Economic and Social Development plan and six suggestions for implementation of the budget and fiscal work.
State Council issued the "Opinions on Further Optimizing Payment Services and Improving Payment Convenience": The State Council on 7^th March issued the “Opinions on Further Optimizing Payment Services and Improving Payment Convenience”, which has put forward six major tasks aimed at improving the payment options available to consumers. Large business districts above a certain size will be expected to bridge gaps in digital payments systems made available to people at hotels, entertainment venues and other businesses. The directive proposes six major tasks, one of which is to improve the bank card acceptance environment for the needs of foreigners, elderly and others at points of housing, travel, medical care, shopping and entertainment. Businesses will also be required to support diversified payment methods such as mobile payments, cards and cash. The directives also aim to improve the convenience of mobile payments, while also optimizing the cash usage environment.
Steel Companies in Yunnan Make Losses Due to Weak Market Demand after Spring Festival: Steel companies in Yunnan have initiated production cuts this month following losses due to weak demand. The Yunnan Steel Association issued the “Information Tips on Measures for Yunnan Steel Plants to Control Production, Reduce Loss and Ensure Survival”, which stated that the recovery of market demand was very weak and steel prices have dropped. Moreover, the prices of other raw materials like ore and coal have also fallen, forcing steel mills to cut production by about 500,000 tons. The same situation has emerged in Guizhou as well, where steel mills are shuttering blast furnaces for 10 days to two weeks and staggering production peaks to reduce output. The weak demand for steel has reflected in the ex-factory prices of construction steel products, which have dropped by 20-50 yuan/ton.
Politburo Standing Committee Members Attend Various NPC Plenary Sessions: Members of China’s Politburo Standing Committee Attended various plenary sessions on 7^th March to deliberate with representatives of various government departments. Cai Qi met with the Qinghai delegation, deliberated on the government work report and praised the achievements of the past year as outlined in the government work report. He also spoke about the economic progress made in Qinghai in 2023 and emphasised high-quality development. Meanwhile, Wang Huning participated in the deliberations of the Taiwan delegation, reiterating the one-China principle, praised Xi Jinping for maintaining stability across the Taiwan strait and demanded that representatives unswervingly promote the cause of reunification. Ding Xuexiang participated in deliberations of the Hong Kong and Macao delegations. He pointed out that the ‘one country-two systems’ has worked and was in line with the interests of the people. He noted that this year was the 25^th anniversary of Macao’s return to mainland China, an opportunity to promote the practice of ‘one country two systems’.

SOCIAL MEDIA CHATTER IN CHINA

Advertisement by Housekeeping Company Seeking Surrogate Mothers Sparks Discussion on Legality of Surrogacy: An advertisement by Huchen Housekeeping, seeking surrogate mothers under the age of 28, has sparked outrage on Chinese social media platforms about the practice of surrogacy in China. China lacks specific laws on surrogacy although certain regulations do not allow the practice. One user commented, “Are they insane? This is blatantly illegal and audacious”. Another said, “Please do not exploit women as tools for reproduction”. Surrogacy has become a hot topic on Chinese social media recently, and a major controversy erupted in 2021 when Zheng Shuang, a celebrity, was accused of abandoning her children to US-based surrogate mothers after her relationship with her partner ended.

INDIA WATCH

India’s steel sector has grown steadily over the last few years as a result of resource endowments, growth of private enterprise and government initiatives to foster growth in the sector. The abundance of high-grade iron ore and non-coking coal, the primary raw materials for steel, in India along with a large and well educated workforce have propelled India into the ranks of the largest steel producers in the world. In 2019, India became the second-largest producer in the world, overtaking Japan. The sector contributes to approximately 2% of India’s GDP, with an annual capacity of 143 MT and production capacity of 76.77 MT. The National Steel Policy of 2017 aided the development of the sector by emphasising technological advancements and enabling the creation of a supportive environment for Indian steel manufacturers by enhancing domestic demand.

However, over the last year, imports of steel have increased, outpacing exports. Shipments of steel from China, from April to November 2023 have increased 50% YoY, and shipments from Vietnam are up by nearly 500%. India for the first time in 2023 imported more steel than it exported, 4.3 Million Tonnes (MT) in imports compared to 4 MT in exports. Imports from China have been made more viable by lower prices of steel in the international market, which also make Indian exports less attractive. Indian steel manufacturers allege that Chinese producers are dumping steel in India, making Chinese steel available at 13-14% cheaper than Indian steel.

Indian steel manufacturers are lobbying the government to impose safeguard duties of 8 – 12% on major steel imports. Steel manufacturers are also seeking the implementation of the Bharat Border Adjustment Mechanism (BBAM), under which a duty of 8 – 12 % will be levied on all steel imports. The government has engaged with multiple stakeholders in the sector and is considering several measures to arrest the import of inferior steel and steel products dumped by China and other countries.

Prepared By

Rahul Karan Reddy

Rahul Karan Reddy is a Senior Research Associate at Organisation for Research on China and Asia (ORCA). He works on domestic Chinese politics and trade, producing data-driven research in the form of reports, dashboards and digital media. He is the author of ‘Islands on the Rocks’, a monograph about the Senkaku/Diaoyu island dispute between China and Japan. Rahul was previously a research analyst at the Chennai Center for China Studies (C3S). He is the creator of the India-China Trade dashboard and the Chinese Provincial Development Indicators dashboard. His work has been published in The Diplomat, East Asia Forum, ISDP & Tokyo Review, among others. He can be reached via email at rahulkaran.reddy@gmail.com and @RahulKaranRedd1 on Twitter.