CiCM 26th July 2024

NEWS IN CHINA

Americans Pay More Due to Washington's Tariffs on Chinese Imports: U.S. households are bearing the brunt of Washington's tariffs on Chinese imports. According to a Tax Foundation study, the average American family paid over $300 more in 2023 due to these tariffs, primarily from higher tax burdens and market efficiency losses. The tariffs, initially imposed by the Trump administration and largely maintained by Biden, have led to significant price increases on everyday items. For instance, suitcase prices have jumped from $100 to $160, while carry-on bags have risen from $425 to $700. U.S. businesses, particularly importers and retailers, are also struggling with increased costs and squeezed profit margins. Major brands like Adidas, Columbia Sportswear, and Nike have urged the Biden administration to end tariffs on footwear, arguing that their removal would alleviate costs and benefit U.S. workers, businesses, and consumers. The situation highlights the complex economic consequences of protectionist trade policies on both American consumers and businesses.
China's Central SOEs to Invest Over 3t Yuan in Equipment Upgrades: China's centrally-administered State-owned enterprises (SOEs) are set to invest more than 3 trillion yuan ($413.94 billion) in large-scale equipment upgrades over the next five years. This initiative aims to keep these enterprises at the forefront of technological and industrial advancements. Liu Shaowei, head of the financial oversight bureau under the State-owned Assets Supervision and Administration Commission (SASAC), announced that central SOEs will accelerate the replacement of outdated production equipment with low efficiency and obsolete technologies. The upgrades will focus on "intelligent transformation, digital transition and network connectivity" projects, integrating new technologies like artificial intelligence into manufacturing processes. The government plans to support central SOEs in developing new types of equipment across various sectors, including industrial machinery, agriculture, healthcare, and education. This move aligns with China's broader efforts to boost innovation in its SOEs, with investment in strategic emerging industries having increased by 32% year-on-year to 2.18 trillion yuan in 2023.
Xi Jinping Chairs Critical Meeting on Flood Control and Disaster Relief: Chinese President Xi Jinping chaired a crucial meeting of the Standing Committee of the Political Bureau, focusing on flood control and disaster relief efforts. As China enters its peak flood season from late July to early August, major river basins including the Yangtze and Yellow River are expected to face significant flooding. The National Meteorological Center has issued its first red alert for Typhoon Gaemi this year, adding to the complexity of the situation. Xi urged authorities at all levels to remain vigilant and proactive in flood control efforts, emphasizing the priority of protecting people's lives and safety. The meeting called for reinforcing water infrastructure to prevent dike breaches and dam bursts, prompt allocation of disaster relief funds, and arrangements for affected residents' needs. Additionally, the agricultural sector was instructed to implement robust disaster control measures to minimize losses and ensure food security.
WADA Defends Handling of Chinese Swimmers' Contamination Case: The World Anti-Doping Agency (WADA) has strongly defended its handling of a 2021 contamination case involving 23 Chinese swimmers, reiterating that its actions were fair and appropriate. At a high-profile news conference in Paris, WADA President Witold Banka denied accusations of bias or cover-up, emphasizing that the decision not to appeal the case was "indisputably reasonable." The case, which involved swimmers testing positive for trimetazidine due to inadvertent exposure at a hotel, was thoroughly investigated by the China Anti-Doping Agency and supported by external consultations. WADA officials also addressed concerns about the unauthorized leakage of athletes' information, noting it has caused distress among athletes and potentially violated legislation. Meanwhile, WADA urged U.S. anti-doping authorities to align with international regulations, highlighting that 75% of American Olympians come from systems not monitored under WADA. The agency also noted that Chinese swimmers have been tested more frequently than their counterparts from other countries, with an average of 21 tests each since January 1, 2024, compared to significantly fewer for athletes from other nations.
China's Migratory Bird Sanctuaries Added to UNESCO World Heritage List: Five nominated sites of China's migratory bird sanctuaries along the coast of the Yellow Sea-Bohai Gulf have been inscribed on the UNESCO World Heritage List. The decision was made during the 46th session of the UNESCO World Heritage Committee held in New Delhi, India. This addition is part of Phase II of the sanctuary project, following the initial inscription of Phase I sanctuaries in 2019. These sites are crucial components of the world's largest intertidal wetland system, providing vital habitats for millions of waterbirds migrating along the East Asian-Australasian Flyway. The flyway stretches across approximately 25 countries from the Arctic to Southeast Asia and Australasia. UNESCO emphasized the unique ecological function of these wetlands as indispensable stopover sites for migratory birds. The inclusion of these sanctuaries on the World Heritage List underscores their global importance for biodiversity conservation.

SOCIAL MEDIA CHATTER

Stabbing of Chinese Tourist in Japan Sparks Outrage on Chinese Social Media: The recent stabbing of Su Weihao, a 53-year-old Chinese tourist, in Osaka, Japan has ignited widespread outrage on Chinese social media platforms. Su and his wife were attacked by a knife-wielding mugger who shouted "money, money" while they were returning to their hotel. The incident has triggered significant discussions about public safety in Japan, with many Chinese netizens expressing reluctance to travel overseas. One popular comment, receiving 14,000 likes, advocated for domestic travel in China, citing comparable landscapes and better safety. Users also drew comparisons to the case of Hu Youping, who died protecting Japanese citizens during a knife attack in Suzhou, highlighting perceived differences in how such incidents are handled in both countries. Some commenters criticized the lack of assistance during the attack and questioned the potential impact on Japan's business environment. The online discourse reflects growing concerns about international travel safety and cross-cultural perceptions between China and Japan.

INDIA WATCH

India's Forex Reserves Hit All-Time High, Boosted by Currency and Gold: China's news agency Xinhua reports that India's foreign exchange reserves have reached a record high, according to data released by the Reserve Bank of India (RBI) on Friday. As per the article, for the week ending July 19, 2024, forex reserves rose by over 4 billion U.S. dollars to reach 670.86 billion U.S. dollars, marking the country's highest-ever level. The increase was primarily driven by growth in two key components. Foreign Currency Assets (FCAs), the largest constituent of the forex reserves, saw a significant rise of 2.58 billion U.S. dollars, reaching a record 588.05 billion U.S. dollars. Simultaneously, India's gold reserves experienced a substantial boost, increasing by 1.33 billion U.S. dollars to reach 59.99 billion U.S. dollars.

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.