CiCM 9th April 2024

NEWS IN CHINA

Premier Li Qiang: The Problems In China's Economy Need To Be Solved With Efforts: In preparation of China’s first quarter GDP release, Premier Li Qiang said that the problems in China's economic operation still need to be solved, and convened discussions with economists and business leaders. Emphasizing the imperative of sustainable economic growth, the Premier addressed persistent challenges, including insufficient demand and external uncertainties. As anticipation builds for the release of first-quarter data next Tuesday, Premier Li dismissed concerns over overcapacity and underscored the complexity of the current external environment. Despite challenges such as a property market slump and weak exports, forecasters have revised their forecasts for China's economic growth in 2024, citing improved policy delivery and positive consumption and investment figures. While acknowledging these positive indicators, economists caution that challenges remain, including the need for further fiscal stimulus to support economic recovery.
China's SME Development Index Rises in Q1, Boosted by Policy Support and Resumed Operations: The SME Development Index climbed to 89.3, marking a 0.2-point surge from the previous quarter. According to a survey conducted by the China Association of Small and Medium Enterprises, the accelerated return to work, post-Spring Festival, and increased policy backing emerged as primary catalysts for this growth. Ma Bin, Executive Vice President of the China Association of Small and Medium Enterprises, highlighted a significant rebound in enterprise operational rates post-Spring Festival, with a notable 15-percentage point increase in fully operational enterprises by March's end. He attributed this resurgence to a suite of growth-stabilizing policies introduced post the legislative sessions, which bolstered corporate confidence. All sub-indexes of the SME Development Index saw across-the-board improvements, with the market and funding indexes witnessing the most substantial increase of 0.3 points each. With 124,000 specialized, special, and new SMEs cultivated nationwide, and plans to establish 100 characteristic industrial clusters, the Ministry of Industry and Information Technology aims to deepen SME participation in key industrial chains, signalling a promising outlook for SME development.
China Vows Impartiality in EU Brandy Probe Amidst Trade Tensions: China's Minister of Commerce, Wang Wentao, affirmed impartiality in the ongoing anti-dumping investigation into European Union (EU) brandy imports. In a meeting with French brandy trade associations and producers in Paris, Wang reassured stakeholders of an open and transparent inquiry, respecting both Chinese law and WTO regulations. Prompted by a complaint from the domestic brandy industry, the investigation, initiated in January, scrutinizes EU-produced brandy imports in containers under 200 liters from October 1, 2022, to September 30, 2023. While there are no predetermined findings, the probe aims to conclude by January 5, 2025, with the possibility of extensions under specific circumstances. Highlighting the 60th anniversary of diplomatic relations between China and France, Wang emphasized the prospects for mutual economic and trade cooperation. He noted China's dedication to promoting consumption in 2024, offering increased opportunities for high-quality imports. Wang extended a warm invitation to French companies to actively engage in the Chinese market, leveraging its vast consumer base.
Former Deputy General Manager of China National Petroleum Corporation Indicted for Bribery: Xu Wenrong, a former deputy general manager of China National Petroleum Corporation (CNPC), faces indictment on bribery charges, announced the Supreme People's Procuratorate (SPP) on Tuesday. The SPP revealed that following investigations by the National Commission of Supervision, the People's Procuratorate of Shenyang City in Liaoning Province filed Xu's case to the city's intermediate people's court. Accusations against Xu include leveraging his positions for personal gains and accepting substantial bribes. The SPP statement stated that prosecutors informed Xu of his legal rights, conducted interrogations, and considered defense counsel arguments. The Central Committee of the Communist Party of China aims to launch a third round of inspections, targeting over a dozen financial institutions, such as the People’s Bank of China, the State Financial Supervision and Administration Bureau, the China Securities and Regulatory Commission, five major state owned banks, as well as policy banks and other financial institutions.
Xi Jinping meets with Russian Foreign Minister Sergey Lavrov: On April 9th, at the Great Hall of the People in Beijing, President Xi Jinping held a meeting with Russian Foreign Minister Sergey Lavrov, commemorating the 75th anniversary of diplomatic relations between China and Russia. Highlighting the fruitful collaboration between the two nations, Xi underscored their shared commitment to peaceful coexistence and mutually beneficial cooperation, which has not only enriched their respective peoples but also contributed to global fairness and justice. Stressing China's support for Russia's developmental endeavours and efforts in combating terrorism, Xi reaffirmed the importance China places on their bilateral relationship. Lavrov, conveying President Putin's warm regards, lauded China's remarkable achievements under Xi's leadership, emphasizing Russia's unwavering dedication to improving ties with China. Both sides reiterated their determination to implement crucial agreements and bolster cooperation across various platforms, including BRICS and the Shanghai Cooperation Organization, with the aim of fostering unity among "global South" countries and advocating for a fairer and more just international order. Foreign Minister Wang Yi's presence further underscored the significance of the meeting in consolidating the enduring friendship and strategic partnership between China and Russia.

CATL Unveils Groundbreaking Zero-Attenuation Energy Storage System: CATL, the world's leading energy storage battery supplier, introduced a revolutionary energy storage system prioritizing zero-attenuation performance. The company's latest product, the Tianheng container energy storage system, boasts a substantial capacity of 6 MWh and ensures no decay in capacity and power for the first five years of operation. Xu Jinmei, CTO of CATL Energy Storage Division, highlighted the significance of this development, noting CATL's previous success in developing long-life battery cells with zero decay for three years. The Tianheng system utilizes CATL’s L-series long-life batteries, achieving an impressive energy density of 430 Wh/L. In response to industry trends, where larger battery capacities are sought to reduce costs, CATL addresses safety concerns by prioritizing zero accidents and disasters. The company emphasizes a comprehensive approach to safety, integrating it into technology development, testing, and operation. CATL's energy storage battery segment continues to demonstrate robust growth, with revenue reaching 59.9 billion yuan last year, representing a 33.17% increase. CATL has maintained its position as the global leader in energy storage batteries for three consecutive years, capturing 40% market share last year.
China Revives 500 Billion Yuan Relending Programme to Boost Tech Innovation and Equipment Upgrades: China has reintroduced two relending tools, allocating a combined 500 billion yuan (US$69.1 billion), to bolster tech innovation and finance large-scale equipment upgrades. The People's Bank of China (PBOC) will extend relending facilities to 21 banks at a rate of 1.75% for a year. Sixty percent of the principal for loans to tech-based small and medium-sized enterprises will be covered, with the option of two one-year extensions. The relending initiative aims to support projects focusing on digitalization, intelligence enhancement, high-end upgrades, eco-friendly technological transformation, and equipment renewal in key sectors. The relending programme is part of Beijing's efforts to address challenges like a slump in the property market and weak investor confidence. More actions, including cuts to the reserve requirement ratio and policy rate, are expected to stabilize economic growth. Seven departments, including the Ministry of Industry and Information Technology recently issued the “Implementation Plan for Promoting Equipment Updates in the Industrial Field” proposing equipment investment in the industrial field by upwards of 25% in 2027, compared to 2023, as well as an increase in the penetration rate of digital R&D and design tools and the numerical control rate of key processes in industrial enterprises above their designated size to exceed 90% and 75% respectively.
China Condemns US Diplomat's Remarks on AUKUS Pact and Taiwan, Warns Against Provoking Bloc Confrontations: China's Foreign Ministry strongly criticized recent comments made by senior US diplomat Kurt Campbell regarding the connection between the AUKUS military pact and the Taiwan issue. The ministry expressed "strong dissatisfaction and resolute opposition" toward Campbell's remarks, emphasizing China's unwavering stance on Taiwan's status as an integral part of its territory. Campbell, the US State Department's No.2 diplomat, had reportedly suggested that the AUKUS submarine project could help "deter any Chinese move against Taiwan." He also highlighted the importance of the trilateral security partnership between the US, UK, and Australia, particularly in maintaining peace and stability in the South China Sea. Spokesperson Mao Ning denounced Campbell's statements as disregarding facts and inciting conflict. Furthermore, he opposed the potential expansion of AUKUS to include Japan, citing concerns about escalating tensions and nuclear proliferation. Mao reiterated China's stance on bloc confrontations and urged relevant countries to fulfil international obligations for peace and stability. The spokesperson also called on Japan to reflect on its history of militarism and aggression, cautioning against exclusive military alliances.

SOCIAL MEDIA CHATTER IN CHINA

Family Condemns AI Resurrection of Late Chinese Star as Violation of Privacy: The family of the late Chinese star Qiao Renliang has vehemently opposed the growing trend of using artificial intelligence to recreate deceased celebrities, denouncing it as an intrusion into their privacy. Qiao Kangqiang, the father of the late star who tragically took his own life in 2016, expressed his distress over AI-generated videos featuring his son, calling for their removal from the internet. Qiao Renliang's parents, still mourning the loss of their only son, now manage a Douyin account where they share glimpses of their lives while promoting the skincare brand their son founded. The contentious AI-generated video purportedly shows Qiao Renliang speaking to his fans and parents, claiming he has not truly departed but has retired to a peaceful life. However, his father asserts that the creation of such videos without family consent is a violation of their rights. Legal experts, including Zhang Yuxia from Shanghai Sunhold Law Firm, have echoed this sentiment, highlighting the infringement of privacy, portrait rights, and reputation entailed in this practice. As debates over ethical boundaries surrounding AI resurrection continue, Qiao Renliang's family stands firm against what they perceive as an unacceptable intrusion into their grief.

INDIA WATCH

In a recent news column published on Guancha, the Modi government in India has been criticised for its purported role in the politicization and militarization of the country's armed forces. The report alleges that the government has been manipulating the traditionally apolitical stance of the Indian military for its own political agenda. The report begins by providing historical context, delving into India's post-independence struggle to maintain civilian control over the military, where it claims that Nehru “castrated” titles in the services to achieve the same. It highlights the relative stability and democratic governance in India compared to Pakistan, which grappled with repeated military coups and interventions in civilian governance, attributing this in part to Nehru's legacy.

Columnist Liu Pai claims that the Indian armed forces have succumbed to pressures exerted by the ruling Bharatiya Janata Party (BJP), led by Prime Minister Narendra Modi. However, the column mischaracterises governmental policy programs as "party-ideological" intiatives, which reveals a limited understanding of Indian politics and the policy environment. Moreover, the article resorts to oversimplifications, hyperbolic statements and strong language to claim that the army has been forced to bear the role of propaganda machine of the government.

The coverage also references the Modi government's utilization of military operations, such as the Uri attack, as evidence of politicisation. These incidents are apparently tools for bolstering the government's political image, blurring the line between national security imperatives and political agendas. According to Pai, this signals a growing nexus between the military establishment and the ruling party, raising concerns about the blurring of lines between civilian governance and the armed forces.

Prepared By

Aliza Mehdi

Aliza Mehdi is a final year student of Political Science at Indraprastha College for Women. Her academic areas of interest include Comparative Politics, Conflict Studies, Developmental Economics and Film and Television Studies, and is currently working as an Associate (Training and Development) at Pratarka - an education startup specialising in soft-skill development and pedagogical research for students. She is interested in politics, policy, design and writing, and is an active member of the DU varsity debating circuit.