CiCM 31st July 2024

NEWS IN CHINA

Xi Jinping Urges Party-Building and Implementation of Guiding Principles of the Third Plenum: The central party and state departments have been encouraged to undertake party-building exercises across the board and to be national role models. Xi Jinping, the general secretary of the Communist Party of China (CPC) Central Committee and Chairman of the Central Military Commission, instructed the central departments to take on analysing the principles of the third plenum of the 20th CPC Central Committee. He regarded these efforts as a “major political task of the whole Party and the country at present and in the near future”. He emphasised the importance of having universal leadership and centralised leadership of the Party Central Committee. He asked the Committee to deepen reforms and advance modernisation. He asked them to promote discipline and combat corruption. Furthermore, he asked the Working Committee for Central and State Institutions to take on challenges and push the country’s development with Party building. A conference to boost the implementation of guiding principles of the plenum and to bolster Party building across departments.

Persisting Heavy Rainfall Causes Economic Losses in Hunan; Severe Rainfall in Northeast China: Continuous heavy rainfall since Friday, 26th July, has affected the Hunan Province in Central China. They have adversely affected nearly 1.15 million people in the province. On Wednesday, 31st July, local authorities reported that the direct economic losses caused by the rains were 6.13 billion yuan ($859.7 million). The preliminary statistics of the provincial flood control and drought relief headquarters stated that 95,000 people had to be evacuated and 49,800 needed emergency relief due to Typhoon Gaemi. Furthermore, the floods have wrecked 107,500 hectares of crops, and 17,100 of these hectares have been destroyed. The second-highest emergency response, Level II, has been issued for floods. Different emergency responses have been initiated in 78 county-level areas and Zixing and Huarong have initiated Level I emergency response for floods. Authorities have asked local authorities to remain on alert for heavy rainfall and to undertake preventive measures whenever necessary. Water levels of 12 reservoirs and five rivers have exceeded their safety limits in Dandong City, Northeast China. The heavy rainfall and floods have also dampened business because many streets and shops are submerged. This led to the evacuation of 28,000 people.

Ultra-Long-Term Special Treasury Bonds To Push Economic Development: The Ministry of Finance announced on Wednesday, 31st July, that over 418 billion yuan ($58 million) have been issued in ultra-long-term special treasury bonds, as part of the 1 trillion yuan planned for 2024 to boost the country’s economic development. A total issuance of 44 billion yuan will be invested in the fourth batch of these bonds on Friday, as per the Ministry of Finance. These measures have been undertaken to support economic recovery as the GDP growth reached 5% in HI of 2023. The government has announced plans to support major national strategies and support security capability by issuing 1 trillion yuan ultra-long-term bonds as per the Government Work Report. The ministry stated that last year’s 1 trillion-yuan bonds in excess have been allotted to local governments for various projects. The commission revealed that local governments issued 1.9 trillion yuan in new bonds to support new infrastructure and emerging industries in the regions. The Finance Ministry has promised to bolster the efficiency of policies and to enable a sustainable economic recovery. The plans include targeting better leveraging of government bonds and enhancing equipment renewal and consumer good trade-ins. Furthermore, various national departments issued mechanisms to invest nearly 300 million yuan in ultra-long-term special government bonds to support new fiscal policies.

China’s PMIs Increase and Contract; Targeted Policies Expected to Stabilise Market: Data released by the National Bureau of Statistics (NBS) on 31st July shows that the purchasing managers’ index (PMI) for the non-manufacturing sector fell to 50.2 in July, from 50.5 in June. The service sector sub-index stood at 50 in July, a decrease from 50.2 in June, with growth in railway transport, air transport, postal services, culture, sports and entertainment , while services linked to retail, capital market, and property contracted. The construction sector sub-index decreased from 52.3 in June to 51.2. The manufacturing PMI touched 49.4. Typically, an index above 50 signifies expansion and an index below 50 indicates a contraction. According to Zhao Qinghe, a senior statistician from NBS, contractions may be because of unfavourable weather conditions, seasonal slacking or less market demand. However, enterprises remain positive. The business expectations sub-index was 53.1, 56.6 for manufacturers and service providers, and 52.9 for construction companies. Pharmaceuticals, railway, ship and aerospace equipment, and electrical machinery indexes are expected to reach 57 or above. The plenum has brought in a series of growth-inducing measures- - equipment upgrades, consumer goods trade-ins, and issuance of ultra-long special treasury bonds. Banks have also cut the benchmark lending rates for one-year loans to 3.35% and over-five-year loans to 3.85%. Policymakers discussed that external tensions are causing domestic demands to remain low. Traditional sectors will face challenges in shifting to new growth drivers. Zeng Gang, the deputy director of the National Institution for Finance and Development, said that macro-regulation policies will stabilise market expectations, increase business confidence and fulfil socio-economic targets.
China Calls on Japan to Adhere to Strategic Reciprocal Relationship: China’s director-general of the Department of Asian Affairs of Chinese Foreign Ministry, Liu Jinsong, stated to Yokochi Akira, chief minister of the Embassy of Japan in China, that China is concerned and dissatisfied with Japan’s stance on China at the Japan-U.S. Foreign and Defence Ministerial (2+2) meeting, the Japan-U.S. ministerial meeting on extended deterrence and the Quad Foreign Ministers’ Meeting, and other meetings. Liu expressed that Japan’s statements did not align with the proclaimed strategic reciprocal relationship between China and Japan. He encouraged the latter to be more objective and rational in its understanding of China, to not interfere in the country’s domestic affairs, and to not participate in groups that instigate tensions. He expressed the importance of both countries upholding their bilateral relations and safeguarding their strategic reciprocal relationship. Yokochi reinstated Japan’s compliance with the 1972 Japan-China Joint Statement on the Taiwan matter and emphasised Japan’s intentions to strengthen the strategic reciprocal relationship between the two.

SOCIAL MEDIA CHATTER

Teenage Female Athletes from China Headline Social Media Discussions: Chinese female athletes are creating a stir on social media with their incredible passion for sports. Yang Siqi, China’s first Olympic surfer, is only 15 years old and has made it to the top 16 in women’s surfing. Cui Chenxi came in fourth at the women’s street final at 14 years old. Zheng Haohao is the youngest member of the Chinese Olympic team and has been taking part in skateboarding events since the age of 11. Netizens on Xiaohongshu, a Chinese social media platform, have been praising all the female participants for facing the challenges of being women in male-dominated sports. They have commented on their dedication and courage for taking part in such sports at such young ages. They praised Yang Siqi for her talent in surfing and her love for surfing. They praised Zheng Haohao for dreaming big and persevering through her injuries from the sport at such a young age. Female athletes have been hailed for leading social media discussions about their love and passion for sports and the “girl power” they projected with their participation in the Olympics.

INDIA WATCH

India’s 8 Core Industries Experience a Growth of 4%: Xinhua, a Chinese news agency, reported on the growth industries experiences in June from 2023. The Ministry of Commerce and Industry released data on 31st July that records a 4% growth in India’s eight core industries. The article reported that these eight core industries- coal, electricity, natural gas, steel, fertilisers, and cement- experienced positive growth, while crude oil and petroleum refinery production reduced. The article states that the production of cement increased annually by 1.9% in June, coal by 14.8%, electricity generation by 7.7%, fertilisers by 2.4%, natural gas by 3.3%, and steel by 2.7%. There was a 2.6% decline in crude oil production, and petroleum refineries experienced a decrease of 1.5%.

Prepared By

Sanjana Shah

Sanjana Shah is a graduate in International Studies with a minor in Journalism from FLAME University, Pune. Her interests lie in exploring the nuances and intricacies of geopolitics and understanding the complexities that arise from the socio-political-economic nexus. She is deeply interested in history, defence and security studies, and humanitarian studies.