CiCM 19th April 2024

NEWS IN CHINA

PLA sets up Information Support Force: The Chinese People's Liberation Army (PLA) has established an Information Support Force, with President Xi Jinping presenting its flag at a ceremony in Beijing. Xi emphasized the need to solidly build a strong and modernized Information Support Force, calling it a major decision in line with overall military strengthening. This force, a new strategic branch, will coordinate the construction and application of the network information system, enhancing the PLA's competitiveness in modern warfare. According to Ministry of National Defense spokesperson Wu Qian, this move is of profound significance for national defense modernization and effective fulfillment of military missions. The Information Support Force, alongside other branches like the Aerospace, Joint Logistics Support Force and Cyberspace Forces, marks a new military system under CMC leadership. China aims to refine its military structure further, tailoring it to evolving tasks. Xi urged building a network information system aligned with modern warfare needs, enhancing integrated combat capabilities effectively.

IT and high-tech manufacturers spur China’s Q1 growth: China’s industrial output saw an increase of 6.1 percent in the first quarter of 2024 with 37 out of 41 sectors registering year-on-year growth. Zhao Zhiguo, chief engineer at the Ministry of Industry and Information Technology stated that China is already the world leader with 5G, but it is also making significant progress with the 6G development. During the first quarter, the equipment manufacturing sector grew by 7.6 percent year-on-year whereas industrial investment increased by 13.4 percent. Currently, China has nearly 3.65 million 5G base stations with a 60 percent penetration rate. It is considered very significant compared to 40 percent in America and 38 percent in South Korea. Concerning 6G, China aims to emphasize to meet user and telecom operator expectations to create a more personalized and diverse set of applications for industries beyond smart manufacturing, remote education, etc.

China to increase tariffs on chemicals imported from the US: As the trade war between the US and China intensifies, China has now imposed anti-dumping penalties exceeding 40 percent, up to 43.5 percent on imports of propionic acid from the United States. This action is seen as a retaliatory measure against similar penalties levied by the US on Chinese imports. Propionic acid is widely used in food, pesticides, drug intermediaries, and as a preservative. The Ministry of Commerce in China found US imports of propionic acid to be relatively high between 2019 to early 2023, making them occupy roughly a 13-16 percent market share during the first three months of the last year. As a result, prices of this chemical remained low despite sustained demand, hurting domestic manufacturers. This decision to levy the penalties follows the USA’s decision to increase tariffs on Chinese steel and aluminum which launched an investigation into China’s maritime, logistics, and shipbuilding sectors earlier this week.

The Chinese representative at the UN calls for backing the Palestinians’ desire for statehood: Fu Cong, China's permanent representative to the United Nations, addressed the UN Security Council's high-level debate on the Palestinian-Israel issue, emphasizing the international community's responsibility to acknowledge the Palestinian people's long-standing aspiration for independence and statehood while rectifying historical injustices. Fu stressed the urgent need to revive the ‘Two-State Solution’, asserting that it is the fundamental resolution to the Middle East conflict, thereby ensuring common security for Palestinians and Israelis, and fostering development for both Arab and Jewish peoples. He highlighted the recent conflict as a tragic reminder of the imperative to address Palestinian aspirations and historical injustices. Fu called for a comprehensive and effective international peace conference to establish a timeline and roadmap for the two-state solution's realization. As the Security Council prepared to vote on Palestine's bid for full UN membership, Fu urged immediate international support for Palestine's application, urging all council members to vote favorably.

“Chinese overcapacity" rhetoric purely economic coercion, says Chinese Foreign Ministry: Chinese Foreign Ministry spokesperson Lin Jian denounced the "Chinese overcapacity" rhetoric employed by the United States as a guise for restricting China's industrial progress through economic coercion. In response to recent U.S. efforts to hype up this rhetoric, Lin highlighted its historical use and noted its current application to China's new energy exports. Lin countered by emphasizing that China's new energy vehicle exports are relatively low compared to other major producers like Germany, Japan and South Korea. He criticized the U.S. strategy as an attempt to gain a competitive advantage rather than addressing genuine economic concerns. Lin warned that employing trade protectionist measures under the pretext of overcapacity would destabilize global industrial and supply chains and hinder the growth of emerging sectors. Lin also refuted U.S. allegations regarding Chinese steel subsidies, stating that China's steel industry primarily serves domestic demand and does not heavily subsidize exports. He criticized the U.S. for providing discriminatory subsidies to its own industries and obstructing international trade under national security reasons. Lin emphasized that China's industrial development stems from technological innovation and market competition, as well as its robust industrial system and domestic market, and blamed the U.S. for inaccurately attributing its own economic problems to China.

SOCIAL MEDIA CHATTER IN CHINA

Mother and son kidnap “would-be child bride” in Guizhou: In China, a 27-year-old son and his mother were arrested for kidnapping an 11-year-old girl they believed would be the ‘perfect’ bride for the son. While on a visit to a village in Liupanshui City in Guizhou, the mother met the ‘perfect’ bride. She proposed the marriage to the girl but the girl’s family rejected the proposal. Soon, Yang and her son kidnapped the young girl when she was alone and took her to their home in Yunnan. Four days later, the mother and son were arrested. They were each sentenced to two years and seven months in prison respectively by the Shuicheng District Court in Liupanshui, for child abduction. China has an ancient tradition of child brides. In 1950, however, this practice was banned but unfortunately, to date, this practice continues in rural areas, leading to young girls getting kidnapped. This instance has sparked a debate about the leniency of sentences for child traffickers in China. One person said, “Seven months? Unbelievable. Has the cost of child trafficking become so low now? This is practically encouraging crime,”. While another wrote, “The son was born in 1997. Besides abduction, an adult marrying with an 11-year-old girl is outright illegal. Those involved deserve the harshest punishment. This family is outrageous,”. Another netizen questioned leniency shown in child trafficking cases and blamed it for continuation o such crimes.

INDIA WATCH

India monitors the Iran-Israel conflict closely: SCMP published a report on India’s growing concerns over the escalating Iran-Israel conflict, which poses significant risks in terms of energy, security, and trade. Recent drone strikes and retaliatory attacks between Israel and Iran have heightened tensions, prompting India to advocate for swifter de-escalation. It mentions statement by Indian Foreign Minister S. Jaishankar, who emphasized the need for peace, acknowledging the sensitivity of the region and exercising restraint. As per this report, India's heavy dependence on Middle Eastern oil imports, coupled with its limited strategic oil reserves, magnifies the urgency of the situation. While India's trade ministry opts for a cautious approach, analysts express concerns over potential disruptions in the Red Sea and the safety of Indian sailors. The report acknowledges that India's evolving strategic ties with both Israel and Iran add complexity to its diplomatic position. While India has strengthened relations with Israel under Prime Minister Narendra Modi, its historic ties with Iran have diminished, particularly in trade. Navigating this delicate balance amid escalating tensions present a diplomatic challenge for India.

Prepared By

Prisha Thakore

Prisha Thakore, a first-year student at Flame University, Pune, delves into the realms of economics and finance with a focus on China and Southeast Asia. As an ORCA research intern, she explores the intricate connections between these regions and the global markets.