CiCM 1st July 2024

NEWS IN CHINA

China’s First Commercial Spacecraft Launch Site Prepares for Maiden Rocket Launch: China's first commercial spacecraft launch facility, the Hainan Commercial Spacecraft Launch Facility, is gearing up for its inaugural rocket launch mission scheduled for later this year. The site, established in July 2022, conducted a system rehearsal on June 30th to ensure readiness. The facility features two main launch pads: the No. 1 pad for China's new medium-lift carrier rocket, the Long March-8, and the No. 2 pad, which is the country's first universal liquid launch pad. Shou Junming, deputy chief engineer and head of the Launch Division at HICAL, stated that the primary goal is to test the coordination and compatibility of software and hardware interfaces between the new launch site and the new rocket equipment, along with the entire launch process. HICAL chairman Yang Tianliang emphasized the importance of completing the first launch on schedule and noted the increased efforts to expedite the construction of the Sanping rocket factory and other related projects.
Xi Jinping's Article on CPC's Missions and Goals to be Published: On July 1st, Xi Jinping released an article detailing the missions and objectives of the Communist Party of China (CPC). This text is part of Xi's report from October 16, 2022, presented at the 20th CPC National Congress. The article outlines the CPC's main task following the 20th National Congress: to lead the Chinese people of all ethnic groups in a unified effort to achieve the Second Centenary Goal of transforming China into a great modern socialist nation in every aspect and advancing the comprehensive revitalisation of the Chinese people through a unique path to modernization. Chinese modernization is characterized by a large population, widespread prosperity, and progress in material, cultural, and ethical domains. It also emphasizes peaceful development and harmony between humanity and nature. The article describes a two-pronged strategic plan to achieve these goals: first, from 2020 to 2035, China aims to achieve socialist modernization; second, from 2035 to the mid-21st century, the goal is to transform China into a great modern socialist nation that is wealthy, powerful, democratic, and harmonious.
Hong Kong Marks Celebration on the 27^th Anniversary of Return to Country of Origin: An array of celebratory events began with a launching ceremony in Hong Kong's Victoria Park commemorating the 27th anniversary of Hong Kong's return to the motherland. At the event, John Lee, the chief executive of the Hong Kong Special Administrative Region (HKSAR), stated that this year is significant as it is the 75th anniversary of the People's Republic of China's founding in addition to the 27th anniversary of Hong Kong's return to its original territory. The head of the Central People's Government's Liaison Office in the Hong Kong Special Administrative Region, Zheng Yanxiong, stated that Hong Kong can integrate into the broader national growth and achieve greater development with the strong support of the nation. Hong Kong will keep improving its global competitiveness, solidify and strengthen its positions in eight important areas, preserve an environment that is free, transparent, and standardized for business, increase the number of convenient and easy international connections it has, and continue to fully utilize its special status and advantages. From June 29 to July 2, Victoria Park will host a series of exhibitions and performances showcasing China's innovative development and traditional culture as part of the celebration activities. Provincial-level regions Sichuan, Liaoning, Jiangxi, Shandong, Shaanxi, and Ningxia will set up booths to introduce local tourism and culture.
China’s Manufacturing Expansion Hits Three-Year High, Pointing to Steady Recovery: June marked the greatest rise in the manufacturing sector in three years in China, bolstered by robust production and stabilizing employment. These developments add to mounting signs of a gradual rebound in the second-largest economy in the world. An increasing number of governmental initiatives targeted at stabilising further development and enhancing the business climate will continue to enhance vitality and improve company confidence, even as Chinese enterprises continue to face complicated external obstacles, such as rising trade protectionism. The 20th Communist Party of China Central Committee's Political Bureau met on April 30^th to discuss the state of the economy and its work. The meeting concluded with a statement that the economy has made a strong start in 2024 and that China's economy still has a strong foundation, many advantages, strong resilience, and enormous potential. China has taken several steps to accelerate economic recovery after the conference, such as issuing ultra-long special bonds. To spur economic growth, the nation recently released 50-year ultra-long special treasury notes on June 14^th for a total of 35 billion yuan ($4.82 billion), making it the first batch of bonds issued this year. China's GDP grew by 5.3 per cent in the first quarter, above market estimates. The nation hopes to reach its annual growth target of about 5 per cent. Despite the downward pressure, an increasing number of indications point to China being on pace to achieve this target.
Central Bank Announces Treasury Bond Borrowing Operation for Primary Dealers: The Central Bank of China, the People's Bank of China (PBC), declared on Monday that it has chosen to undertake open-market treasury bond borrowing operations for primary dealers shortly after closely observing and assessing the state of the market. This indicates that the PBC's discussions over the last six months on the purchase and sale of government bonds are moving into the operational stage. Selling the bonds will boost market confidence in China's economic development while assisting in the stabilisation of long-term interest rates and the mitigation of interest rate concerns. According to media sources, the PBC has expressed discontent with current long-term yields on many occasions since the beginning of 2024, emphasizing the need to keep an eye on their volatility during the economic recovery. For instance, on May 31, industry experts stated that if long-term government bond rates keep falling, now is not the time to purchase, as reported by the PBC, as cited by the Financial News, a Chinese media outlet affiliated with the central bank. In contrast, the PBC may think about selling government bonds as needed if bank deposits start to flow into the bond market and demand for risk-free assets keeps rising.

SOCIAL MEDIA CHATTER

China Supermarket Chain Makes US$1.2 Million Payout to Customers Over Contaminated Noodles: A well-known Chinese supermarket chain, Pang Dong Lai, has made a significant payout of 8.8 million yuan to customers after complaints surfaced about the sanitation of their noodles. The company, known for its good treatment of employees and customers, was forced to take action after a video posted on Douyin showed unhygienic conditions in the food processing area of one of their outlets in Xinxiang, Henan. The video showed raw materials stored in rusty iron barrels and dirty plastic buckets, and staff handling dough without sanitized clothing. The company launched an investigation and found that the merchant responsible had violated the terms of their cooperation agreement by secretly moving the processing location without permission. As a result, Pang Dong Lai fired the employees involved and revoked their bonuses. The company also compensated customers online to the tune of $1.2 million, a move that surprised many online observers. While some thought the amount was excessive, others praised the company's commitment to product quality and customer trust.
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INDIA WATCH

Demand For Chinese Goods Remains Strong in India: China Daily reported that, according to analysts, despite recent tax rises by authorities, Indian importers will persist in bringing in Chinese goods, which are expected to maintain their dominance in the local market. The Global Trade Research Initiative, reports that during the fiscal year 2023–2024, China's imports of products increased 3.29 per cent year over year to $101.74 billion, despite an overall 5.66 per cent fall in India's total imports of goods. India will keep importing items from China as no other manufacturer can match the enormous economies of scale that Chinese manufacturers have. However, India has been putting more of a stop to Chinese imports in recent months. On June 28, India levied anti-dumping taxes on three Chinese items to protect domestic firms from the effects of low-cost imports. The Directorate General of Trade Remedies, the commerce ministry's investigation branch, recommended the imposition of these taxes. The author also stated New Delhi levied a six-month temporary anti-dumping tax of $614 per ton on imports of "Telescopic Channel Drawer Slider" from China. The purpose of the anti-dumping tariff is to ascertain whether the spike in low-cost imports has harmed domestic industries. The anti-dumping laws are intended to prevent local companies from being unduly harmed by low-cost imports rather than to provide long-term structural benefits to the domestic economy.

Prepared By

Diksha Takale

Diksha is currently an undergraduate student at FLAME University, Pune. She is pursuing her degree in BA with a major in Literary and Cultural Studies and minor in Sociology. Writing is a part of her primary focus in building her career and one way to cater to that is by diversifying her academic reach in a field such as international relations. She is an avid reader and writes fiction in her leisure time.