CiCM 12th April 2024

NEWS IN CHINA

Data on Import and Export Growth in March Raises Concern: China's export growth saw a notable decline in March compared to the previous year, dropping by 7.5% as per customs data. However, exports in the first quarter of the year grew by 1.5% compared to the previous quarter's contraction of 1.2%. Vice-minister Wang Lingjun stated that a recovery in overseas markets and the digital economy is expected to lead to robust expansion this year, despite geopolitical challenges and fluctuations seen in the first quarter. In contrast to exports, imports in March dropped by 1.9% from a year earlier, bringing China's trade surplus to $58.6 billion in March, down from $125.1 billion in the first two months of the year. This drop in imports has been attributed to sluggish domestic demand. According to Zhang Zhiwei, chief economist at Pinpoint Asset Management, the rebound in exports, compared to the previous quarter, indicates a positive trend in external demand. On similar lines, Larry Hu, Chief economist at Macquarie Capital, stated that China’s trade figures are expected to stabilize in the coming months after significant fluctuations in the first quarter due to last year's turbulent base. China is expected to see relatively robust export growth of around 5% this year, driven by strong recovery in demand in overseas markets, particularly in the US. However, import growth may remain stagnant due to sluggish domestic demand. The Chinese administration appears optimistic about trade performance and hopes to lay strong foundations for achieving the goal of “quality improvement and quantity stability” throughout the year.
Queqiao-2 Satellite Marks Success in Lunar Communication Tests: China's Queqiao-2 satellite has completed in-orbit communication tests, according to the China National Space Administration (CNSA) on Friday. The CNSA confirmed that Queqiao-2's platform and payloads are functioning normally, meeting mission requirements. This satellite is poised to provide relay communication services for China's fourth phase of lunar exploration and future lunar missions, both domestic and international. Recent communication tests, including successful interactions with the Chang'e-4 and Chang'e-6 probes, have validated Queqiao-2's capabilities. Launched on March 20, the satellite entered its highly elliptical orbit around the moon on April 2 after a series of maneuvers. Accompanying Queqiao-2 are two communication and navigation technology test satellites, Tiandu-1 and Tiandu-2, which have also entered their target orbits. These satellites are currently conducting tests on communication and navigation technology. Queqiao-2's orbit, closer to the moon than its predecessor Queqiao, enhances communication rates and coverage, particularly in the lunar south pole region. With plans to support future lunar missions such as Chang'e-6, Chang'e-7, and Chang'e-8, Queqiao-2's deployment marks a crucial step in China's lunar exploration ambitions. Chang'e-6 is scheduled for launch in the first half of 2024, followed by Chang'e-7 around 2026 and Chang'e-8 around 2028. These missions aim to establish a lunar research station for comprehensive exploration of the lunar environment.
15th National Games Organizing Committee Established in Guangzhou: The official establishment of the Organizing Committee of the 15th National Games marked in the beginning of preparations for the event, with Guangdong, Hong Kong, and Macao collaborating closely to ensure its success. At the founding meeting, Gao Zhidan, Director of the State Sports General Administration, was appointed as the director of the organizing committee. Joining him as executive directors are Wang Weizhong, Deputy Secretary of the Guangdong Provincial Party Committee and Governor of Guangdong Province; Li Jiachao, Chief Executive of the Hong Kong Special Administrative Region; and Ho Iat Seng, Chief Executive of the Macau Special Administrative Region. Gao Zhidan emphasized the historical significance of hosting the National Games in Hong Kong and Macao for the first time, highlighting its importance for sports and national unity. Zhou Ji, Deputy Director of the Hong Kong and Macao Affairs Office of the Central Committee of the Communist Party of China, expressed hopes for the event to serve as a new benchmark for sports development in Hong Kong and Macao, as well as an opportunity for regional integration and friendship. Wang Weizhong outlined Guangdong's commitment to sustainable, inclusive, and exciting Games, focusing on venue maintenance, technology integration, and showcasing the unique characteristics of the Greater Bay Area. Li Jiachao assured full cooperation from the Hong Kong SAR government, utilizing existing venues and the upcoming Kai Tak Sports Park for the event. Ho Iat Seng affirmed Macau's dedication to hosting a successful and vibrant Games, mobilizing community engagement and highlighting Macau's urban vitality.
Li Qiang Chairs Meeting of State Council to Boost Central Region Development and Address Payment Arrears: Chinese Premier Li Qiang led a State Council executive meeting to accelerate the development of the central region and devise solutions for resolving payment arrears to enterprises. The meeting emphasized the need to capitalize on the central region's geographical and resource advantages by fostering deeper integration between scientific and industrial innovation. Regional coordination and high-level reforms were highlighted as pivotal to converting these strengths into developmental assets. Addressing the issue of corporate account arrears, the Premier advocated for immediate action through a specialized debt clearance initiative, alongside the establishment of a robust long-term mechanism. The meeting highlighted the need to undertake special actions to clear debts, focus on government arrears to enterprises and enterprise arrears of accounts to small and medium enterprises. The State Council also discussed increasing the non-compliance costs for defaulting agencies and speeding up project price settlement and bill management systems. Additionally, the meeting approved the “2024-2025 Energy Saving and Carbon Reduction Action Plan” and the “Work plan for accelerating the construction of a dual carbon emission control system”, thereby strengthening China’s plans on promoting and achieving a sustainable green economy.
China Securities Regulatory Commission Seeks Public Feedback on Draft Rules to Strengthen Market Supervision: The China Securities Regulatory Commission (CSRC) has announced its call for public opinions on six draft rules aimed at enhancing market supervision in line with directives from the Central Financial Work Conference and the State Council's "Several Opinions on Strengthening Supervision, Preventing Risks, and Promoting High-Quality Development of the Capital Market". These draft rules encompass various aspects of market oversight, including issuance, company and trading supervision, irregular trading, penalties for manipulation and short selling. Key revisions in issuance supervision involve the enhancement of standards for companies applying to the Science and Technology Innovation Board, with stricter criteria on R&D investment, invention patents, and income growth. Additionally, the proportion of random inspections for IPO companies will be raised from 5% to 20%, alongside increased problem-oriented on-site inspections and exchange supervision. New measures are proposed for managing shareholder reductions and revising rules concerning shares held by directors, supervisors, and senior managers, emphasizing adherence to reduction regulations post-divorce or stock division. For securities company supervision, revisions in the "Regulations on Strengthening the Supervision of Listed Securities Companies" aim to realign business priorities with serving the real economy, bolstering corporate governance effectiveness, and implementing comprehensive risk management. In transaction supervision, the formulation of "Securities Market Programmed Transaction Management Regulations (Trial)" seeks to clarify definitions, reporting requirements, transaction monitoring, and system management, with a focus on strengthening supervision of high-frequency trading and ensuring consistency in management standards between domestic and foreign capital.
Ministry of Defense Condemns U.S.-Taiwan Military Ties, Warns Against 'Taiwan Independence': Colonel Wu Qian, Director of the Information Bureau of the Ministry of National Defense and Spokesperson of the Ministry of National Defense, expressed China’s opposition to US-Taiwan military ties, at a press conference on April 12. In response to the reported visit of the Taiwan Navy commander to the U.S. Indo-Pacific Headquarters in Hawaii and participation in US military activities, Wu Qian firmly denounced any official exchanges or military ties between the United States and Taiwan. He reiterated China's stance that Taiwan is an integral part of its territory, asserting that the resolution of Taiwan's status is a purely internal matter. Wu Qian dismissed the notion of the "first island chain" as a Cold War relic, emphasizing that any attempts to contain China are futile. He urged the United States to adhere to the one-China principle and the agreements outlined in the three China-U.S. joint communiqués, urging an immediate halt to military cooperation and official exchanges with Taiwan. Furthermore, Wu Qian issued a warning to the Democratic Progressive Party (DPP) authorities in Taiwan, cautioning against aligning with foreign interests. He emphasized that those who are willing to be "chess pieces" will ultimately be ’abandoned’, while those advocating for "Taiwan independence" through force will only die and the PLA will attack any form of Taiwan independence head-on. Col. Qian also addressed the first joint maritime exercise by US-Japan-Philippines-Australia in the South China Sea. He emphasized that these activities should not target specific countries and harm their regional peace and stability. He also stated that countries outside the region should not engage in activities that dismantle the peace.
Cai Qi Meets John Thornton in Beijing to Discuss US-China Ties: Chinese President Xi Jinping’s chief of staff, Cai Qi, met with influential American businessman John Thornton in Beijing on Friday, with an aim to facilitate the stabilisation of ties between Beijing and Washington. Following the meeting, Cai Qi expressed hope that Thornton would continue to promote exchanges and friendship between the two nations and would help to lessen the gap between them. Thornton also expressed his willingness to play a key role in advancing US-China friendship and improving Americans' understanding of China. Thornton is the executive chairman of Barrick Gold Corp, co-chairman of the Asia society and a former president of Goldman Sachs who has significant connections in China and has acted as a backchannel between the two countries. This was particularly true during Covid 19, when China was experiencing a nationwide lockdown and relations with the US were strained. John Thornton embarked on a six-week trip to China to visit Xinjiang, revealing his reliability among PRC leaders. Additionally, Thornton also played a key role in facilitating a phase-one trade deal between the US and China in January 2020, which was even acknowledged by then US President Donald Trump.
Installation of China's First Small Modular Reactor's Control System Begins in Hainan: In a significant milestone for China's nuclear energy sector, the installation of the digital control system (DCS) has commenced for the world's first land-based commercial small modular reactor (SMR) in Hainan. The SMR, named Linglong One, represents a breakthrough in nuclear technology and was developed domestically by the China National Nuclear Corporation. Deng Xiaoliang, deputy general manager of Hainan Nuclear Power Co., Ltd., highlighted the DCS's pivotal role as the "nerve center" of the reactor's operations. Distinct from the larger Hualong One, the Linglong One reactor, with a capacity of 125 MW, is uniquely designed for diverse applications such as urban heating, cooling, industrial steam production, and seawater desalination. This development follows the success of the Hualong One, a homegrown third-generation nuclear reactor. The Linglong One received international recognition when it became the world's first SMR approved by the International Atomic Energy Agency in 2016. Construction of the Linglong One project in Hainan commenced in 2021, marking a significant step towards expanding China's nuclear energy capabilities and addressing diverse energy needs with innovative and sustainable solutions.

SOCIAL MEDIA CHATTER IN CHINA

Social Media Applauds Fujian School for Innovative Anti-Bullying Alarm System: The Aofeng School in Fujian province, China, is making headlines for its innovative approach to combating bullying. The school recently installed an extensive alarm system, including in its toilets, to prevent instances of bullying among its primary and secondary level students. These devices notify teachers on their computers, allowing them to communicate with students via a speaker at the location and monitor the situation through surveillance cameras. The school's headmaster, Guo Bojing, expressed hope that the system would enable teachers to react swiftly to bullying incidents, effectively enhancing the school's capacity to address the issues. Social media users have responded positively to the news, with many praising the school's proactive approach to tackling bullying. "It's great to see the Aofeng School taking proactive steps to address bullying. This alarm system should be promoted nationwide," commented one user on Weibo. While some expressed concerns about the core issue of bullying, with one user stating, "Proper legal punishment for bullies is essential to stop school bullying," others applauded any measures aimed at eliminating the problem. "Every step towards the elimination of school bullying should be applauded," added another user. The Aofeng School's initiative has sparked discussions online, highlighting the importance of addressing bullying in educational settings and encouraging other schools to consider similar measures.

INDIA WATCH

South China Morning Post reported that three major opposition political parties in India have expressed their support for same-sex civil unions in their election manifestos, drawing praise from the country’s LGBTQ community. The Congress Party, Communist Party of India and the Communist Party of India (Marxist), have pledged to include legislation recognizing same-sex civil unions in their agenda if they secure enough seats in the ongoing national elections held from April 19 to June 1. The report states that attitudes towards LGBTQ rights in India have been evolving, as reflected in recent surveys. Citing a study by the Pew Research Center in 2019 which found that 37% of respondents in India believed that homosexuality should be accepted by society, compared to just 15% in 2013, the report states that the announcement has been met with enthusiasm from activists and members of the LGBTQ community in India. Another Pew survey from June last year revealed that 53% of Indian adults supported legalizing same-sex marriage.

The coverage of this announcement by domestic political parties in India is driven by China’s interest in election dynamics and social issues in India. The article mentions that challenges persist for LGBTQ individuals in India, particularly in rural areas, where they face threats of violence, lack of family support, and difficulties accessing healthcare. However, the report does not make any statement about civil liberties in India that permit discussion and debate about same-sex issues, and the benefits of a democratic system that permits expression, freedom and choice, compared to authoritarian countries. The article quoted several individuals, activists and interest group representatives from India who voiced their support for the announcement by opposition parties.

Prepared By

Agniva Ray

Agniva Ray is an M.A, 2nd year, 4th semester student pursuing Political Science with International Relations in the Department of International Relations, Jadavpur University. He holds a deep interest in Socio-economic (Non-Traditional Security) as well as Traditional security issues concerning South Asia and aims to pursue research work in this very field.