CiCM 18th March 2024

NEWS IN CHINA

Wang Yi meets New Zealand Prime Minister Luxon in Wellington: During a recent meeting in Wellington on March 18, New Zealand Prime Minister Luxon engaged in discussions with China's Foreign Minister Wang Yi. Wang Yi emphasized on the longstanding commitment to mutual respect and cooperation between the two nations since the establishment of diplomatic ties. Recognizing the 10th anniversary of the comprehensive strategic partnership, Wang Yi expressed China's commitment to further enhancing cooperation in various sectors, including education, technology, and infrastructure, offering support for New Zealand's policy priorities. Luxon reciprocated the sentiment, affirming the importance of the bilateral relationship and pledging to uphold the one-China policy. Both sides expressed eagerness to deepen collaboration across multiple domains for mutual prosperity and regional stability. Additionally, Wang Yi held discussions with New Zealand Foreign Minister Peters and met with Trade Minister Maclay on the same day. Notably, this is the first visit by a Chinese foreign minister to New Zealand in seven years.

70 billion cubic metres of water diverted by the East-Middle Route of the South- North Water Diversion project: According to the China South-North Water Diversion Group, the initial phase of the East-Middle Route of the South-to-North Water Diversion project has achieved a significant milestone. Over 70 billion cubic meters of water have been redirected, reaffirming the economies of major cities along its path and fostering favourable conditions for social development. initiated in November 2013, this phase links the Yangtze River to Jiangsu, Anhui, and Shandong provinces, , while another phase diverts water from the Danjiangkou reservoir to Beijing and Tianjin, completed in December 2014. This diversion, equivalent to the Yellow River's annual flow for nearly one and a half years, has benefited 176 million people along its route. Over 40 large and medium-sized cities rely on southern water sources. Nanshui provides over 70% of Beijing's urban water and almost all of Tianjin's main supply. Moreover, this initiative has rejuvenated over 50 rivers and numerous lakes, revitalizing the Beijing-Hangzhou Grand Canal with a navigation span of 877 kilometres. Presently, the water quality meets stringent standards, reaching level II for the middle route and level III for the east route, solidifying the project's environmental sustainability and efficacy.

Chinese automobile industry witnesses over 30 percent growth in 2024: In the initial two months of 2024, China witnessed a significant surge in automobile exports, marking a 30.5 percent increase compared to the previous year, as per industry reports. According to the China Association of Automobile Manufacturers, a substantial total of 822,000 vehicles were exported during this period. Among these, the export of passenger vehicles increased by 31.5 percent, reaching 686,000 units, while commercial vehicle exports amounted to 136,000 units, indicating a notable rise of 25.9 percent year-on-year. Furthermore, data highlights a growth in the export of new-energy vehicles, totalling 182,000 units, reflecting a 7.5 percent year-on-year increase.

China’s judicial authorities declare the ‘yin-and-yang’ contracts as a tool for tax evasion: China's leading judicial bodies have categorized "yin and yang" contracts as tax evasion in a recently published legal document, aimed at preserving market integrity and promoting social progress. Outlined in a judicial interpretation addressing tax-related offenses jointly issued by the Supreme People's Court and the Supreme People's Procuratorate, this marks the first explicit recognition of "yin and yang" contracts as constituting tax evasion. These contracts, also known as twin contracts, involve producing two sets of documents for a single agreement. One reflects the true nature of the agreement, while the other, showing reduced amounts to minimize taxes, is presented to tax authorities. This interpretation provides a robust legal framework for addressing such cases, according to Teng Wei, chief judge of the SPC's no. 4 Criminal Adjudication Tribunal. The document also outlines eight circumstances constituting export tax refund fraud, addressing concerns about recent increases in such offenses. Taxation authorities have tightened supervision, with notable successes in identifying and penalizing entities suspected of illegal tax activities. This coordinated approach exemplifies China's efforts to ensuring tax compliance and combating financial crimes across various sectors, including emerging areas like e-commerce and livestreaming.

Sixth 100-million-ton oil field discovered in the Bohai Oilfield by CNOOC: CNOOC declared a breakthrough by unveiling a new discovery in the central and northern Bohai Sea—the Qinhuangdao 27-3 oil field. With proven reserves totalling 104 million tons, this find marks the region's first substantial oil and gas revelation in a decade, vital for bolstering Chinese offshore energy resources. Situated approximately 200 kilometres west of Tianjin City, in waters with an average depth of 25 meters, the Qinhuangdao 27-3 Oilfield exhibits promising characteristics, yielding around 110 tons of crude oil per day per well during testing. According to Zhou Jiaxiong, deputy general manager of CNOOC Tianjin Branch, this discovery underscores the effectiveness of shallow lithology exploration strategies in the Bohai Sea. Xu Changgui, deputy chief engineer of CNOOC Exploration, highlights that the Qinhuangdao 27-3 oil field marks the sixth 100-million-ton discovery in the Bohai Oilfield since 2019. This achievement underscores the vast exploration potential within the complex strike-slip fault zone of the Bohai Sea, promising substantial benefits for China's offshore oil development efforts.

China breaks nine-year decline, sees decadal high in number of new registered marriages: China broke a nine-year trend of declining marriage registrations last year, as newlywed couples surged to 7.68 million, marking an increase of 845,000 compared to 2022, according to data from the Ministry of Civil Affairs. He Yafu, an independent demographer, attributed this rise to the postponement of marriages due to the Covid-19 pandemic. He noted a significant revival in the wedding industry, particularly during the 2023 Mid-Autumn Festival and National Day holidays, leading to increased consumer spending. While gold jewellery expenditures for weddings remained strong, overall spending on wedding banquets declined by 10 to 15 percent per annum in 2023, as reported by China Wedding Expo. China's declining marriage rates since 2013, alongside plummeting birth rates, have aggravated concerns about rapid aging of its 1.4 billion population. Government efforts, including incentives and policy changes like the three-child policy introduced in 2021, aim to address this demographic challenge. Demographic analysts also link the decline in marriage rates to the high costs of family creation, gender imbalance, and evolving negative attitudes toward marriage among young Chinese. Similarly, average age for first marriage has gone up from 25.75 years for men in 2010 to 29.38 years in 2020. For women, this age has increased from 24 to 27.95 during the same period.

SOCIAL MEDIA CHATTER IN CHINA

AI Clones of celebrities who have passed away takes Douyin by storm, raises ethical dilemmas: On Chinese short-video platforms, a disturbing trend has emerged where AI-generated videos are resurrecting deceased celebrities, prompting ethical and legal debates. Ranging from sincere tributes to blatant exploitation, these videos have triggered criticism from the families of the departed, highlighting concerns about privacy and legal boundaries. On platforms like Douyin, these videos feature celebrities like Coco Lee and Qiao Renliang, speaking to audiences using their own voices, albeit through AI manipulation. While some creators claim to honour fan requests, many exploit these videos for commercial gains. Qiao Renliang's father, for example, expressed discomfort at seeing an AI recreation of his son, questioning the legality and ethics behind it. Such sentiments echo across social media, with calls for respect and consent from the families of the deceased. Legal experts warn of potential repercussions, stressing the importance of obtaining permission and respecting the rights of the deceased and their families.

INDIA WATCH

The recent interactions between the New Zealand Prime Minister and Chinese Foreign Minister Wang Yi, as well as Minister Yi’s planned visit to Australia indicate continued Chinese interest in the Indo-Pacific, especially the Australasian region. The Australasian states, however, have a more dynamic relationship with China. They seem to balance their foreign policy based on incentives, siding with both the West and the Chinese on different issues. China plays an important role in the economic development, diversification and overall growth of both countries, especially through their ever-expanding trade of goods and services. China trade accounts for around one-quarter of total trade for Australia, and one-fifth for New Zealand. Both have signed free trade agreements (FTAs) with China, and are a part of the Regional Comprehensive Economic Partnership (RCEP), which forms the largest trade bloc in the world. However, Australia has also joined hands with the US and UK through AUKUS to strengthen its position and counter Chinese influence in the region’s security calculus. For India, it has built strong trade and diplomatic ties with both Australia and New Zealand. India is a major importer of Australian gold, coal and copper ores, while it exports jewellery, medicaments, passenger vehicles and services. Importantly, India and Australia have closely related security policies as a part of the Quadrilateral Security Dialogue (or, ‘Quad’). Trade with New Zealand is also up, with a total trade value of around 1.8 billion USD in 2020. PM Modi has also shown his intentions by holding a private bilateral meeting with his Kiwi counterpart at the sidelines of the UNGA in 2019, leading to several high-level political meetings and summits held in both states. On security issues, India and Australia hold 2+2 ministerial dialogues which focuses on increasing military-level cooperation through joint exercises as well as joint development of defence industries to foster research and innovation.

Prepared By

Parth Prasad

Parth Prasad is a second-year undergraduate student pursuing International Relations and Public Policy. His interests lie in international economics, diplomacy studies as well as Indian foreign policy analysis. His interests and area of research often brings him on Indo-Sino relations, thus igniting his interest in understanding Chinese polity.