CiCM 8th April 2024

NEWS IN CHINA

China announced new targets to increase grain production: China has unveiled a detailed strategy to increase its grain production by more than 50 million tons by 2030, with the goal of improving food security in response to worries about a potential increase in the gap between supply and demand. The aim is to expand the grain producing area to 1.75 billion mu (117 million hectares) and enhance the grain yield per mu to 420 kilograms. Despite China consistently producing a grain harvest of more than 650 million tonnes for nine years in a row, authorities caution about the fragile equilibrium between supply and demand. To tackle this issue, the emphasis will be on increasing the production of corn and soybeans, as well as enhancing the quality and system of growing rice and wheat. Furthermore, there will be attempts to boost the cultivation of potatoes and various grains and legumes suited for a specific weather and soil conditions in the area. The program encompasses significant efforts in water conservation, high-quality farmland development, and revitalizing the seed industry across 720 primary grain-producing counties, managed by the National Development and Reform Commission and the Ministry of Agriculture and Rural Affairs.

CCUS pilot project in Eastern China successfully captured CO2 in bricks: Energy companies are using Carbon Capture, Utilization and Storage (CCUS) technology to reduce emissions in order to comply with China's dual carbon goals. Zhejiang Energy successfully conducted a pilot project that stored CO2 in bricks emitted from coal power plant. The project is proposed to capture 15,000 tons of CO2 each year, achieving a high capture rate of 90 percent with 99 percent purity in testing. By using a two-phase absorbent with minimal energy usage, captured CO2 can then be used in various applications such as aerated bricks and food-safe dry ice using. The carbon dioxide interacts with the brick components, allowing for long-term storage within the building material. This new method not just cuts production expenses, but also plays a part in environmentally friendly changes in coal-fuelled power plants. Chairman Liu Shenghui highlights the importance of these initiatives in furthering China's goals to reach peak carbon emissions and attain carbon neutrality.

Travel surge during Chinese Qingming festival as over 740 million trips recorded: Government data released on Sunday showed that China witnessed an increase in travel during the three-day Qingming Festival holiday from April 4 to 6, with over 740 million trips taken nationwide. This showed a substantial growth from the year before, with an average of 246.8 million trips taken daily during the festival, indicating a 53.5 percent increase compared to the previous year. The Ministry of Transport noted significant growth in different forms of transportation. On a daily basis, railway trips increased by 75.1 percent to 16.56 million, while waterway trips rose by 84.9 percent to reach a total of 916,000 trips per day. Air travel saw an increase in popularity, with around 1.68 million passengers utilized flight services every day, an increase of 21.9 percent. Meanwhile, road trips continued to be the most popular way to travel, with 682.92 million taken during the festival season, averaging 227.64 million daily, marking a 52.3 percent rise from 2023. The Qingming Festival, also referred to as Tomb-Sweeping Day, carries historical importance in Chinese tradition, focusing on paying respect to ancestors. The increase in travel at this time shows a combination of celebrating the festival culturally and a general rise in mobility and recreational activities among the Chinese population.

Ma Ying-jeou advocated peace during the China visit: Ex-Taiwanese President Ma Ying-jeou toured a museum in Beijing dedicated to the Second Sino-Japanese War, advising the youth to draw lessons from the past and settle conflicts through peaceful means. He highlighted the pain experienced by mainland China and Taiwan in the war, underlining the significance of unity and peaceful resolution of conflicts. Ma's trip with Taiwanese students to the mainland, lasting 11 days, is known as a "peaceful journey" amidst rising tensions in the Taiwan Strait. Although not confirmed yet, his possible interaction with President Xi Jinping signifies a major diplomatic advancement. This is Ma's second trip to the mainland since stepping down from office in 2016. Ma's participation highlights attempts to encourage communication and lessen tensions between the two sides of the Taiwan Strait, illustrating wider regional interactions and diplomatic considerations.

Wang Wentao rejects accusations about China’s EV industry: The Chinese Minister of Commerce, Wang Wentao, highlighted that Chinese electric vehicle (EV) manufacturers have witnessed rapid growth due to technological innovation, a strong supply chain, and market competition instead of subsidies. He rejected claims of excess capacity in the EV sector made by the US and Europe as baseless. Wang emphasized the important role of China's EV industry in global efforts against climate change and promised government assistance to protect the interests of businesses. Confronted with outside obstacles, Wang advised companies to strengthen internal skills, promote innovation, handle risks, and focus on green development. He urged for increased collaboration with domestic businesses and highlighted China's proactive involvement in worldwide green initiatives. During a meeting with China Chamber of Commerce to the EU and leading EV companies including Geely, SAIC, BYD, and CATL, talks were focused on improving global tactics and increasing collaboration between China and Europe in the EV industry. Meanwhile, a report by Citi research revealed that the EU accounted for 47 percent of China’s total exports in 2023. However, recent probe into Chinese EV imports to the EU have resulted in tighter control over these imports.

China announced central parity rates for major currencies: The central parity rates of the yuan against 25 major currencies were published by the China Foreign Exchange Trade System. The rates released Monday show how much one hundred units of each currency are worth in yuan. The most significant central parity rate of the yuan against 100 U.S. dollars is established at 709.47. 100 euros are priced at 771.37 yuan, whereas 100 Japanese yen is equivalent to 4.7065 yuan. These prices are established using different methods. An example would be the determination of the central parity rate with the U.S. dollar, which is calculated using the average of market maker prices before the start of the daily interbank market. On the other hand, the exchange rates of the Hong Kong dollar and the Pataca are based on the central parity rate against the U.S. dollar and the exchange rates of these currencies against the U.S. dollar. The central parity rates for the remaining 22 currencies are calculated based on the average prices quoted by market makers prior to the opening of the interbank foreign exchange market. These rates offer important information on how the yuan is valued compared to other major global currencies and have a substantial impact on international trade and finance.

SOCIAL MEDIA CHATTER IN CHINA

Chinese authorities intervene in underage marriage: An underage marriage involving a bride and groom under 15 years old caught the eye of mainland Chinese social media before authorities stepped in to stop the wedding ceremony. The incident took place on the 23rd of March in a rural village located in Xintai county, Shandong province. The groom, aged around 14-15, was in high school, whereas the bride was slightly younger. Although Chinese law requires men to be at least 22 years old and women at least 20 years old to marry, the parents authorized the marriage in March and carried out a wedding in accordance with local traditions, seemingly oblivious to the age restrictions. Authorities quickly took action, stressing the illegal nature of underage marriage and offering guidance to the minors and their parents. The situation gained a lot of attention on the internet, prompting discussions about the legality and societal impacts of these relationships. Although the legal marriage age has fluctuated in China throughout history, current standards emphasize following legal guidelines. Some netizens also noted legal complications of intimate relations between these underage couples. While one netizen supported the teenage couple by citing ancient Chinese traditions. Teenage marriages have been occasionally seen on social media, showing changes in opinions about early marriage and the legal protection of minors' rights.

INDIA WATCH

SAIC's Indian subsidiary announced Equity Transfer to JSW Group: A media house in China published an article announcing equity transfer of its Indian subsidiary MG Motor India to JSW Singapore, whose parent company is Indian steel giant JSW Group. SAIC is a Chinese state-owned car manufacturer and has taken this decision to promote the company's global presence along with Indian markets and to prevent operating risks. Even after this transfer, SAIC will still hold majority voting rights with 49 percent total stake in the company whereas JSW will gain control over 35 percent of the company. SAIC aims to take advantage of India's fast-growing market and increase MG‘s rank from eighth to fifth in the Indian automobile market by 2030. However, MG already ranks second in India’s electric vehicle market and inclusion of JSW can further help MG Motor to increase its share in the electric vehicles industry. MG Motor was established in 2017 with SAIC Hong Kong holding 99.99 percent of stakes and remaining by SAIC International. As announced before, this joint venture between JSW and MG Motor will launch new cars every three to six months including new energy vehicles, thereby disrupting the Indian automobile market. Since the Chinese market is already dominated by BYD and Tesla, SAIC aims to capitalize on its expertise in new energy vehicles through this joint venture and expand its business in the world's third largest automobile market - India.

Prepared By

Triveni Mahajan

Triveni is a student of Bachelor of Journalism and Mass Communication at Bennett University and has contributed to the field of Indian Politics Journalism.