CiCM 24th July 2024

NEWS IN CHINA

China Reports Largest Summer Harvest Increase in Nine Years: China has achieved its largest grain output increase in nine years this summer, primarily due to a bumper wheat harvest. Han Jun, Party chief of China's Ministry of Agriculture and Rural Affairs, announced that about 346 million mu (23 million hectares) of wheat were harvested, an increase of 475,000 mu from last year. The yield per mu of wheat rose by 10 kilograms, or 2.6 percent year-on-year, marking the biggest growth in five years. This year's summer grain output totaled 149.78 million tonnes, hitting a new high, while the full-year grain output has remained above 650 million tonnes for the ninth consecutive year. Soybean production has also improved, with its self-sufficiency ratio increasing by nearly 4 percentage points over two years. Despite this success, Han noted that multiple grain-producing regions are suffering from droughts or floods, emphasizing the need for prompt relief measures to mitigate the impact on autumn harvests. To address this, technicians and agricultural officials have been sent to villages to provide targeted services for farmers. This record harvest underscores China's ongoing efforts to ensure food security and agricultural development.
China Hosts Ukrainian Foreign Minister for Diplomatic Talks: Foreign Minister Wang Yi held significant talks with Ukrainian Foreign Minister Dmytro Kuleba in Guangzhou on July 24, 2024. This marks the first visit by a Ukrainian foreign minister to China since the conflict began in February 2022, and the first such visit since 2012. During the talks, Wang reaffirmed China's commitment to promoting a ceasefire and peace talks in Ukraine. He emphasized China's belief that conflicts must ultimately be resolved through negotiation and political means. Wang also noted China's ongoing humanitarian assistance to Ukraine and called for ensuring the security of Chinese individuals and institutions in the country. Kuleba expressed Ukraine's willingness to engage in dialogue with Russia, emphasizing the need for sensible and substantive negotiations aimed at achieving a just and lasting peace. He highlighted Ukraine's appreciation for China's positive and constructive role in promoting peace and maintaining international order. The visit underscores China's growing diplomatic influence in the Ukraine conflict and its efforts to position itself as a key player in seeking political solutions to major international disputes. Both ministers also discussed strengthening bilateral cooperation in areas such as agriculture and trade.
Xi Jinping Instructs Xiamen Airlines to Boost Cross-Strait Exchanges: Chinese President Xi Jinping has called on Xiamen Airlines to play an active role in promoting economic and social development, as well as advancing exchanges and cooperation across the Taiwan Strait. In a reply letter to the airline's staff on its 40th founding anniversary, Xi emphasized the importance of the airline's role in cross-Strait relations. Xi, who previously served as vice mayor of Xiamen, praised the airline's leapfrog development over the past four decades. He urged staff members to remain committed to reform and innovation, enhance the airline's core competitiveness, and contribute to the high-quality development of China's civil aviation sector and transportation capabilities. Xiamen Airlines, established in July 1984, holds the distinction of being China's first airline to operate under a modern corporate system. Currently, it operates more than 400 domestic and international air routes, serving nearly 40 million passengers annually. This directive from Xi highlights the strategic importance of Xiamen, a coastal city on the western side of the Taiwan Strait, in fostering cross-Strait exchanges and integration. It also underscores the Chinese government's continued focus on strengthening ties with Taiwan through various channels, including civil aviation.
Chinese Scientists Discover Molecular Water in Lunar Soil: Chinese scientists have made a groundbreaking discovery of molecular water in lunar soil samples collected by the Chang'e 5 mission. The research team, led by experts from the Chinese Academy of Sciences' Institute of Physics, identified a hydrated mineral named ULM-1 containing six crystalline water molecules, accounting for up to 41% of the sample's mass. This marks the first time molecular water has been found in returned lunar samples, challenging previous assumptions about the moon's aridity. Published in Nature Astronomy on July 16, 2024, the study suggests that lunar volcanic gases contain significant amounts of water. The mineral's stability in the moon's vacuum environment indicates it could potentially exist across vast lunar regions. This discovery, made possible by samples collected in 2020, is crucial for lunar evolution studies and future resource development on the moon. It opens new avenues for understanding lunar geology and potential resource utilization, highlighting the importance of China's lunar exploration program in advancing our knowledge of Earth's celestial neighbor.

Mainland Criticizes DPP for Endangering Taiwan's Safety and Well-being: Zhu Fenglian, spokesperson for China's Taiwan Affairs Office of the State Council, has issued a strong rebuke to Taiwan's Democratic Progressive Party (DPP) authorities, accusing them of jeopardizing the safety and well-being of Taiwan's residents. Zhu criticized the DPP for aligning with the United States, seeking secession through external support, and escalating military capabilities, actions she claims have heightened tensions across the Taiwan Strait. The spokesperson pointed to recent military drills where the DPP issued missile alerts, allegedly creating panic among the population. Zhu also condemned the DPP's requests to use temple facilities for weapon storage. She argued that these actions, along with substantial spending on U.S. arms, are depleting resources at the expense of Taiwan's people and effectively turning them into victims of a secessionist agenda. Zhu noted growing opposition and discontent among Taiwan's population against these measures. The mainland urges the DPP to abandon attempts that could lead Taiwan toward conflict and war, emphasizing the need for stability and the well-being of people in Taiwan.

SOCIAL MEDIA CHATTER

Made in Japan" Reputation Crumbles Amidst Manufacturing Scandals: Chinese social media platforms are ablaze with discussions about recent scandals involving Japanese manufacturers, particularly in the pharmaceutical and automotive sectors. The once-revered "Made in Japan" label is facing a severe credibility crisis, sparking intense debates among Chinese consumers. The Kobayashi Pharmaceutical "red yeast pill" scandal, with reported deaths increasing from 5 to over 80, and admissions of irregularities in safety tests by major automakers like Toyota and Mazda, are at the forefront of these discussions. Many netizens express shock and disappointment, sharing personal experiences of nearly purchasing affected products. The popularity of Japanese medicines among young Chinese consumers, particularly due to attractive packaging, is now being scrutinized, with users recalling incidents like the misleading "Anpanman Cough Syrup" case from 2018. These scandals have prompted reflection on consumer behavior, with some advocating for prioritizing product safety over appealing packaging or brand reputation. The ongoing debates highlight broader concerns about the erosion of trust in Japanese products and manufacturing practices, potentially impacting Japan's economy and international standing.

INDIA WATCH

India Grapples with Youth Unemployment Crisis: The South China Morning Post published an article discussing India's ongoing struggle with youth unemployment, blaming the inadequacy of government measures to address the crisis. As per the article, despite India's projected 7.2% economic growth this year, job creation remains a major challenge for Prime Minister Narendra Modi's administration. The government recently unveiled a US$24 billion package to boost job creation and worker skills, but opposition leaders argue it's insufficient. While official data puts the unemployment rate at 3.2% for 2022-2023, independent think tanks estimate it to be much higher at 9.2%. With over 40% of India's 1.4 billion population under 25 and millions entering the job market annually, the situation is increasingly critical. Economists criticize the government's focus on capital-intensive sectors rather than labor-intensive ones, and questions have been raised about the validity of official employment data. The article highlights personal stories, like that of Vijay Mankar, a 28-year-old commerce graduate struggling to find work for over two years. Analysts warn that failure to introduce robust measures could lead to a worsening crisis, potentially becoming a "volatile" issue given India's large youth population.

Prepared By

Vanshika Patel

Vanshika is a recent graduate from Ashoka University with a degree in Economics and a minor in Computer Science. Her interests lie in understanding the global economy and its impact on international communities, policy-making, and the social sector. She is particularly drawn to quantitative analysis and has a keen interest in international economics, aiming to contribute to data-driven decision-making in global economic contexts.