CiCM 19th August 2024

NEWS IN CHINA

Li Qiang Presided over State Council Executive Meeting: Premier Li Qiang chaired an executive meeting of the State Council where several significant policy decisions were made. The meeting reviewed and approved key documents, including the "Opinions on Promoting High-Quality Development of Service Trade with High-Level Opening" and the "Special Management Measures for Foreign Investment Access". Additionally, drafts of the "Regulations on the Registration and Review of Laws and Regulations" and the "Regulations on Urban Public Transportation" were reviewed and approved as well. The meeting also discussed policy measures aimed at fostering the high-quality development of specialized, refined, and innovative small and medium-sized enterprises. Furthermore, the decision was made to approve five nuclear power projects, including the first phase of the Xuwei project in Jiangsu. Moreover, the meeting underscored the need to drive the growth of service trade as a means of promoting high-level openness and augmenting growth in international trade. It was pointed out that it is necessary to further relax foreign investment access, comprehensively cancel restrictions on foreign investment access in the manufacturing sector, and speed up the opening up of service sectors such as telecommunications, education, and medical care. The meeting stressed that safety is paramount in nuclear power development. It called for ongoing improvements in safety technology and risk prevention, strengthened supervision across all areas, and ensuring nuclear power safety to support the industry's long-term, healthy growth.
Xi Jinping Meets Vietnam’s General Secretary and President To Lin: At the Great Hall of the People in Beijing, the General Secretary of the Communist Party of China Xi Jinping met with the General Secretary of the Communist Party of Vietnam and President To Lin, who was in China on a state visit. Xi Jinping stated that he looks forward to building a strong working relationship and personal friendship with Comrade To Lin to further their mutual cause together. Xi also mentioned that in the critical period of development and revitalization of their respective countries, China and Vietnam must accurately grasp the direction of building a community with a shared future, consolidate the development pattern of higher political mutual trust, build more solid security cooperation, deepen pragmatic cooperation, firm uppublic opinion foundation, tighten multilateral coordination and cooperation, and better management and resolution of differences. The meeting also indicated that China is committed to maintaining close strategic communication and high-level exchanges with Vietnam, offering mutual support and exploring expanded cooperation between the "Belt and Road" initiative and the "Two Corridors and One Circle" framework. This includes accelerating infrastructure connectivity in railways, highways, and ports, and enhancing smart customs systems. Next year, to mark the 75th anniversary of diplomatic relations, both states will co-host activities like the "China-Vietnam Cultural Exchange Year" to reinforce public support in both countries.
China and U.S. Hold 5th Economic and Financial Meeting: The China-U.S. financial working group held its fifth meeting in Shanghai , discussing a range of issues related to the financial policies of both countries, according to China's central bank. The meeting was co-chaired by Brent Neiman, deputy under-secretary for international finance at the U.S. Department of the Treasury, and Xuan Changneng, deputy governor of the People's Bank of China (PBOC). According to a statement issued by the PBOC on Monday, attendees of the meeting included representatives from the U.S. Federal Reserve, the China Securities Regulatory Commission, the National Financial Regulatory Administration of China, and the Securities and Exchange Commission of the United States. The discussions addressed various topics, including economic and financial conditions, monetary policies, financial stability, securities markets, cross-border payments, international financial governance, fintech, sustainable finance, and anti-money laundering measures. Technical experts presented reports on issues like disposal mechanisms for global systemically important banks, financial institutions' operational resilience, climate risk stress testing, and supervision of cross-border financial services. During the meeting, the PBOC and the U.S. Department of the Treasury signed an agreement to strengthen cooperation on financial stability, exchanging contact lists to ensure smooth communication during financial stress and operational risks. The central bank said that both sides have agreed to maintain communication.
Tax Data Shows Strong Sales Revenue Growth in July: According to the State Administration of Taxation's most recent data on value-added tax, China’s economy showed strong sales revenue growth in the eastern and western regions, with increases of 5 % year on year. Sales revenue growth in Guangdong, Shanghai, and Zhejiang was 5.8%, 5.9%, and 7.8% every year respectively; Inner Mongolia and Chongqing also achieved faster growth, up 7.3% and 6.7% year-on-year respectively. Industrial enterprises saw a 6% year-on-year increase in sales revenue, 1.7 percentage points higher than in the second quarter. The mining industry rebounded with 9.7% growth, while the manufacturing sector grew by 5.7%, with raw material processing and equipment manufacturing up 6.8% and 6%, respectively. The power production and supply industry saw a 5.6% rise in sales revenue. Additionally, the number of newly established tax-related business entities grew by 7.3% by the end of July and foreign-invested tax-related entities increased by 4.2%, and those from Belt and Road countries by 27.7%. The Taxation Science Research Institute's director, Huang Lixin, noted that VAT invoice data highlights the stability and progress of China’s economy, emphasizing the importance of continued reform efforts.
China Vows to Counter Philippines South China Sea Intrusions: According to the China Coast Guard (CCG), a Philippine coast guard ship caused a collision with a Chinese vessel early on Monday morning in the waters near Xianbin Jiao/Sabina Shoal and later intruded into the waters of Ren'ai Jiao. The China Coast Guard vowed on Monday to forcefully foil any acts of infringement and provocation, protect China's maritime rights and interests and territorial sovereignty. According to China, despite its warnings and attempts to dissuade, another Philippine coast guard ship also trespassed into the waters near Xianbin Jiao. It further stated that the CCG lawfully and professionally managed the Philippine vessels. CCG spokesperson Gan Yu stated that China's Coast Guard will continue to conduct rights protection and law enforcement activities in waters under China's jurisdiction in accordance with law. On Monday, China's Foreign Ministry stated that the Philippines is solely responsible for the collision of vessels and that China will continue to take strong actions in line with the law to protect its territorial sovereignty and maritime rights. Chinese Foreign Ministry spokesperson Mao Ning said "China is always committed to properly handling maritime disputes between China and the Philippines through dialogue and consultation".

SOCIAL MEDIA CHATTER

China’s AAA Game Black Myth: Wukong Sparks Excitement: Chinese firms are racing to connect themselves with the much-awaited Black Myth: Wukong, the country's first AAA video game, through collaborations and product tie-ins, ahead of its release. Lenovo Group, Luckin Coffee, and Didi Bike are redesigning their products, drawing inspiration from a potentially groundbreaking Chinese game that is exciting domestic gamers. Based on the classic novel Journey to the West, this action RPG by Hangzhou’s Game Science has garnered high praise, placing it alongside top global titles like Diablo IV and Halo Infinite. Two years after development started, Game Science first unveiled a 13-minute demo reel in 2020, attracting widespread attention for its fluid combat scenes and cinematic visuals. Earlier this month, the studio released its final pre-launch trailer, generating more buzz and racking up more than 14 million views on the Chinese streaming site Bilibili and 1 million views on YouTube. Eric Wu, a sophomore at Guangzhou University, expressed excitement about playing a game rooted in Chinese culture, noting that most games he’s experienced were based on Western themes. He mentioned that he looks forward to the traditional Chinese combat style and monster designs, as well as the graphics and art style. Ors Xing, a student at the City University of Macau, eagerly anticipates playing and supporting the first domestically developed AAA video game.

INDIA WATCH

Global Times Op-Ed Claims Trade with China Will Benefit India's Processing Industry: An Op-Ed in the Global Times reported on the possibility of China-India cooperation to support India’s ambitions to become a major manufacturing hub, given it has been courting foreign firms to set up operations in India. The op-ed by Hu Weijia claims that the future of India's manufacturing development may depend on how it approaches its processing industry. In fiscal year 2023-24, India imported over $18 billion USD in electronic components from China and Hong Kong, accounting for more than half of its total imports in this sector. The op-ed states that this has sparked discussions in India, with some arguing that various factors limit India to being an assembler rather than a manufacturer of electronics. The boom in assembly manufacturing has led to increased imports of intermediate products, raising concerns in India about growing reliance on Chinese goods. However, the article claims that these worries are unwarranted, as a zero-sum mentality could impede the long-term growth of India's manufacturing sector. With the global industrial chain restructuring, India is becoming an attractive base for key manufacturing sectors like mobile phones, which presents a significant opportunity for economic growth and job creation in the country. The article also stated that India's manufacturing development should be phased, starting with enhancing the investment environment and focusing on becoming a processing hub. It also claims that China and India have significant potential for cooperation, with China's manufacturing expertise and exports of machinery and components playing a crucial role in advancing India's processing industry. Overall, the article highlights the indispensable role of China in Asia-Pacific’s industrial chain and advocates that India avoid protectionist thinking.

Prepared By

Pavithra SR

I am a third-year undergraduate majoring in International Relations at Shiv Nadar Institute of Eminence, Greater Noida specializing in gender, security, and digitalization. My interests include policy making and South Asian studies, with a particular focus on international migration, subaltern communities, and democratic studies. I am keen to conduct policy research in these areas in the future.