CiCM 11th October 2023

NEWS IN CHINA

China registered 18.21 million new energy vehicles nationwide: In a report by the Ministry of Public Security, it was announced that China achieved a significant milestone with the registration of 18.21 million new energy vehicles (NEVs) nationwide, accounting for 5.5% of China's total motor vehicle count. Among these NEVs, 14.01 million were electric vehicles, marking a notable shift in consumer choices for sustainable transportation. During the first three quarters of the year, China experienced a substantial 40% growth in the registration of new energy vehicles compared to the previous year. Furthermore, the second-hand car market also remained active, with 25.05 million motor vehicle transfer registrations processed. The data also highlighted the China’s robust automotive landscape with 90 cities across the country having more than 1 million cars. Among them, major metropolitan areas such as Beijing, Shanghai, Chongqing, Tianjin, Wuhan, Chengdu and Shenzhen boasted car counts exceeding 4 million, with Beijing, Chongqing, and Chengdu leading the way with over 6 million cars. The data revealed China's substantial investment in adoption of eco-friendly transportation solutions by transitioning from traditional fossil fuel-based transportation to cleaner, greener alternatives.

Attack on Chinese Consulate in San Francisco: An unidentified person rammed a car into the Chinese Consulate in San Francisco, prompting swift response from the local police. The incident has been described as a ‘violent attack’ by the Ministry of Foreign Affairs' spokesperson Wang Wenbin who emphasized that the attacker's actions were an attempt to harm the people present at the scene as well as the consulate staff. According to the consulate spokesperson, the assault, although not fatal, caused serious damage to the property. San Francisco police have reported that they shot and killed the driver, and a comprehensive investigation is currently underway with the U.S. State Department working in accordance with the Vienna Conventions that govern the safety and security of diplomatic officials. One of the eyewitnesses reported that the man shouted "Where's the CCP?" as he got out to the car, a reference to China's ruling Communist Party. This incident is not the first as the Consulate was previously attacked in 2014 and has been a focal point for protests against China's human rights record. In February 2023, demonstrators gathered outside the consulate to protest Beijing's secret police "service stations" on the U.S. soil which coerced Chinese citizens into returning home to face criminal charges for staging dissent abroad.

India’s ED arrested four officials from Chinese firm Vivo: It was reported that India's Enforcement Directorate arrested four individuals, including the Managing Director of Indian smartphone brand Lava, and a Chinese employee of smartphone maker Vivo under the charges of money laundering. The agency claimed that Vivo had transferred approximately 50% of the its total sales turnover illegally to China to evade taxes. In response to these allegations, Vivo stated that it strictly adheres to local laws and regulations in India and assured that it is closely monitoring the ongoing investigations and will take all necessary legal measures to address the situation. Till 2021, Vivo had operated over 650 service centres and more than 500 exclusive Vivo stores across India, contributing significantly to the Indian mobile phone market. Since last year, the Enforcement Directorate had conducted searches at the offices of Chinese smartphone manufacturer Vivo and its subsidiaries alleging a money laundering racket involving Chinese nationals and multiple Indian companies. Chinese manufactures like Huawei and Xiaomi, have also been under scrutiny by relevant departments of the Indian government in this broader chain of events.

China released State Council Guidelines for Inclusive Finance: In an executive meeting of the State Council, chaired by Premier Li Qiang, a guideline document was released outlining policies and measures to promote the high-quality development of inclusive finance by 2025. The meeting focused on addressing the needs of low-income populations, implementing targeted social assistance, developing meal assistance services for the elderly, and promoting patents. The guidelines also call for advancing financial supply-side structural reform, mitigating financial risks in key areas, enhancing financial literacy, and improving consumer rights. The Ministry of Finance has prioritized the task of ‘effectively protecting and improving people's livelihoods’ as a key focus, and allocated funds of up to154.7 billion yuan in aid subsidies for individuals and to support local governments in various initiatives. The government also stated that their main responsibility was to provide basic protection for people in need, especially those affected by disasters, and to provide them a safe and warm winter. The Central Committee of the Communist Party of China and the State Council also issued a "community + property + elderly care service" model to ensure that the aging population receives adequate support and assistance in their daily lives.

China launched first ever hydrogen fuel cell powered ship: In an effort to promote sustainable and decarbonized shipping, China launched the first hydrogen fuel cell-powered ship, named ‘Three Gorges Hydrogen Boat 1’, which successfully completed its maiden voyage in Yichang, Hubei Province. The ship's development marks a breakthrough in the application of hydrogen fuel cell technology to inland ships. With a rated output power of 500 kilowatts and a cruising range of up to 200 kilometres, the vessel is reduce carbon dioxide emissions by 343.67 tons. The China Classification society reported that the ship can provide important data that will support the development of the hydrogen fuel cell market which is growing rapidly in China and could reach $1.45 billion in the next few years. The ship was jointly developed and built by various organizations, including the Yangtze River Electric Power Company. The hydrogen-powered boat will be used for transportation, inspection, and emergency response in the Three Gorges Reservoir area. The vessel sets a new standard by moving towards zero pollution and zero emissions, as well as become a testing ground for introducing hydrogen fuel cell technology in the maritime industry.

SOCIAL MEDIA CHATTER IN CHINA

Expressing hope for Han Ting’s rescue operation: Han Ting, a renowned diver, known for his involvement in significant rescue missions and holding the Asian record for the deepest cave dive, was found more than 110 meters underwater by a robot, in the Jiudun Skylight of Guangxi. He was reported missing by the Duan County Emergency Bureau on the evening of October 7^th when he did not come ashore after diving in the Jiudun skylight. Han Ting had previously successfully rescued two divers who had an accident at the same location, often referred to as China's underwater Everest. Many netizens have expressed deep admiration for Han Ting's courage and selflessness, remembering his role in salvaging a 20-year-old from the Peach Blossom Skylight. Online communities have expressed fervent hope for a successful recovery mission to salvage Han Ting's remains, urging authorities to deploy skilled divers and execute a plan for the recovery process. However, given the extreme depth of the location recovery operations are proving exceptionally challenging. One netizen stated "It's easy for him to catch people, but it's hard for others to catch him." The comments also highlighted the inherent dangers associated with cave diving, as one netizen noted that “the complexity of the underwater environment and the low temperatures makes it a dangerous sport regardless of one's skills or capabilities.” As one netizen pointed out, engaging in cave diving seems like a daily encounter with mortality, emphasizing the bravery and risk-taking involved in this perilous pursuit. One of the netizens also remarked on the bravery of the divers as, "choosing the path of diving is really about brushing against death every day.” With more than 650,000 searches China’s social network site Weibo, many people have shared the news of him being found with the hashtag #diverHan苋.

INDIA WATCH

In another chapter of economic tensions between India and China, Chinese tech firms have once again come under intense scrutiny and regulatory pressure from the Indian government. Earlier this year, companies like Xiaomi, Oppo, and Huawei, had faced scrutiny from the Indian Enforcement Directorate citing reasons of security concerns and tax evasion. While it is necessary to ensure such financial scams are not allowed to take place, India needs to realise the economic significance these tech firms have, and how it cannot afford to alienate their investments at the same time. Chinese smartphone brands continue to dominate the Indian market, with approximately 17% of global Chinese shipments directed to India, Samsung being the sole non-Chinese brand among the top five. While Indian manufacturers have made efforts in producing smartphones up to the level of affordability and quality as their Chinese counterparts, there is still a significant gap in matching the ‘Made in India’ tag with the ‘Made in China’ one. However, in recent months, companies like ZTE, Vivo, Xiaomi, and Oppo, have had their offices searched in part of a series of government measures to address business malpractices and curb Chinese corporate influence. The crackdowns on Chinese companies wouldn't be a wise move for India as it can stimulate the exit of their operations affecting job opportunities for its young demographic. On the same note, it is also necessary for Chinese companies to adhere to the laws of the Indian market to ensure their business activities are running in accordance to the regulations of their overseas base. The Indian market is crucial for China, especially considering the challenges faced by the Chinese economy resulting from COVID-19 restrictions. Hence, both countries should strike a balance by emphasizing regulatory compliance and ensuring that company operations are not permanently halted.

Prepared By

Taru Ahluwalia

Taru Ahluwalia completed her Post-Graduation in East Asian Studies from the University of Delhi and her Under-Graduation in English from Lady Shri Ram College for Women. She aims to decode the enigma that is East Asia and examine its geopolitical re-positioning in today’s world. She holds a diploma in Korean Language and aspires to learn Chinese one day.