CICM 8th October 2024

NEWS IN CHINA

Provinces Provide R&D Funding for “Gazelle” Enterprises: Provinces like Shaanxi, Jiangsu, Zhejiang and Shandong have announced measures to support “gazelle enterprises” by offering them financial aid, like subsidies for R&D, to promote their expansion. For instance, the Shaanxi Provincial Department of Science and Technology has recognized 305 enterprises as gazelle enterprises and 57 others as potential gazelle enterprises. A R&D subsidy of no more than 300,000 yuan has been announced for these enterprises. Gazelle enterprises are characterised by fast-growing revenue sales in the tech and retail sectors. They are high-growth technology-based small and medium sized enterprises working in the fields like biotechnology and artificial intelligence which are important for the development of emerging industries and future industries. Provincial governments have claimed that growth of such enterprises can subvert traditional paths with breakthrough technologies, result in more employment, inspire other enterprises to create a similar model and aid in China’s industrial transformation. It is expected that these enterprises pave the way for larger ‘unicorn’ companies.
Former Ningxia CPPCC Official Under Investigation: Former secretary of the Party Leadership Group and chairman of the Ningxia Hui Autonomous Region CPPCC, Qi Tongsheng, has been placed under investigation and disciplinary examination on grounds of serious violations of discipline and law by the CCDI and NSC. He was previously deputy director of the CPPCC’S Ethnic and Religious Affairs Committee, member of standing committee of the Party committee of the Ningxia Hui Autonomous Region and Chairman and Secretary of the Party Leadership Group of the 10^th CPPCC Ningxia Hui Autonomous Region from 2013. He later became deputy director of the CPPCC’s Ethnic and Religious Affairs Committee. He held many key positions in the province, including director of the region’s Development and Reform Commission and vice-governor of the province.
China's Central Bank and Finance Ministry Hold First Joint Working Group Meeting: People’s Bank of China and Ministry of Finance have held the first formal meeting of the joint working group to implement the requirements of the Third Plenum. Some of these recommendations are to improve the economy policies and then enhance the buying and selling of treasury bonds in the open market operations of the Central Bank. Xuan Changneng, member of the Party Committee and Deputy Governor of the People's Bank of China, and Liao Min, member of the Party Leadership Group and Deputy Minister of the Ministry of Finance attended the meeting and delivered speeches. Both sides affirmed their commitment to close cooperation and agreed that the purchase and sale of central bank treasury bonds is important to enrich the monetary policy toolbox and strengthen liquidity management. The meeting charted out the future steps, like continuing to maintain the development of the stock market, optimizing relevant institutional arrangements and maintain the stable development of the bond market to ensure it remains efficient and strong.
China's Commerce Minister Holds Talks with US Counterpart: China’s Minister of Commerce, Wang Wentao, engaged with his American counterpart, Gina Raimondo, on several trade and economic issues over a phone call. The meeting was conducted with a focus to implement the consensus reach by the two countries at the San Francisco meeting. The Minister urged the US to lift sanctions on Chinese enterprises and stated that it was crucial to clarify the boundaries of national security in economic and trade areas in order to maintain stability of supply chains. Wang also expressed concern about the US policies on semiconductors to target China and Chinese NEVs. Both sides agreed to maintain an open channel of communication in the coming months. China’s Commerce Minister also urged the US to pay attention to the concerns of Chinese enterprises and improve the business environment for Chinese companies in the US.
NDRC Director Emphasizes 'Stability' and 'Progress’ of Economic Situation: Zheng Shanjie, the director of NDRC, claimed that China’s economy is stable in the face of complex domestic and international problems. He stated that significant strides have been taken in promoting new quality productivity, strengthening people’s livelihood security alongside ensuring progress in solving risks in important areas. He stated that the added value of high-tech manufacturing and equipment manufacturing sectors increased by 8.9% and 7.6% respectively in this year. He also said that the industrial focus on new energy vehicles (NEV) and integrated circuits has been increasing, with the output of NEVs and integrated circuits increasing by 31.3% and 26.6% respectively, compared to last year. Zheng Shanjie also referred to the “two news”, (large-scale equipment renewal and consumer goods replacement). He also described the employment situation as stable, with “9.44 million new urban jobs created in the first eight months with a substantial increase of 200,000 year-on-year”. The NDRC’s optimistic outlook on the state of China’s economy suggest stability in the overall situation, although analysts have expressed concerns of a slowdown in various other sectors.

SOCIAL MEDIA CHATTER IN CHINA

Social Media Users Express Anger at Blogger who Admits to Trespassing in Ailao Mountain: The blogger by the name ‘Miaojiang Chen Duoduo’ claimed that she visited the Ailao Mountain in Yunnan province, before the government announced the ban on entry for citizens during the National Day holiday. Netizens on social media expressed shock at her actions and disbelief at her justification. The blogger’s video clearly shows her encroaching in 2 protected areas: the Nanhua County Conservation Area and the Zhenyuan County Conservation area. Nanhua County Management and Protection Bureau and the Zhenyuan unit’s staff have been tasked with carrying out the investigation into the matter. The Ailao Mountain National Nature Reserve includes 3 states and 6 counties and the government has issued a ban on any group or individual entering the reserve for any activities during the National Day. Netizens criticised the blogger while stressing on the importance of following rules and regulations.

INDIA WATCH

Cailianshe Article Discusses Global Investor Shift Away From India to China's Stock Market: An article on Cailianshe, a Chinese media company reporting on the securities market in China, has claimed that foreign capital once in India and other Asian markets is flowing into China after the strong performance of China’s A-Share and Hong Kong stock markets. The article states that, compared to India’s stock market, China’s stock market has seen significant foreign money inflows reaching more than 13 billion, the highest single-week volume in history. It also suggests that this shows the gradual shift of foreign investors away from India back to China. The article cites Cameron Brandt, head of research at EPFR Global, who argued that China's series of stimulus plans have triggered a frenzy of investors who are pursuing Chinese stocks. The significant drop in foreign investment in India’s stock market is attributed to the stimulus package that China introduced which has attracted foreign investors. There have also been similar outflows in other Asian stock markets in countries like Korea, Indonesia, Malaysia and Thailand.

Prepared By

Trishala S

Trishala S is a Junior Research Associate at the Organisation for Research on China and Asia (ORCA). She holds a degree in Sociology with a minor in Public Policy from FLAME University. Trishala’s research interests lie at the intersection of socio-political dynamics, family and gender studies, and legal frameworks, with a particular focus on China. Her work examines the effects of aging populations, gender disparities, and rural-urban migration on social welfare, labor policies, and the integration of migrants into urban environments. She is also the coordinator of ORCA's Global Conference on New Sinology (GCNS), which is India's premier dialogue driven China conference. She can be reached at trishala.s@orcasia.org and trishalasasianandkumar@gmail.com.