CiCM 12th February 2024

NEWS IN CHINA

China’s policy bank lent historic amounts to newly emerging industries in 2023: The Chinese Development Bank (CDB) has reportedly lent around 551.8 billion yuan to newly emerging industries in 2023, funding the advancement of the “the country's advanced manufacturing and strategically important emerging industries”. CDB’s report reveals that the loans supported a wide variety of industries, from new-generation information technology, high end equipment, new materials, new energy vehicles, energy conservation and environmental protection industries, while also funding research and developmental projects in the country. CDB also claims to have funded over 76 projects, providing 27.3 billion yuan, in industries such as basic software, industrial internet and smart grid.

Philippine Coast Guard vessel expelled from South China Sea waters: In a statement from the spokesperson of the China Coast Guard, Gan Yu, it was revealed that a Philippine Coast Guard vessel was caught illegally entering the waters near the Huangyang Island (also known as the Scarborough Shoal), over which China claims to have full autonomy and control. The island is an important part of the Chinese strategy in South China Sea. Yu stated that several verbal warnings were given before the Chinese Coast Guards had to forcibly expel the vessel to protect Chinese sovereignty over the island and the waters nearby. Even when forcibly expelling the illegal vessel, Yu claimed that the Chinese Coast Guard worked with utmost professionalism, harming no member on the vessel or the vessel itself. No quotes have been released from the Philippine Coast Guards.

Chinese-built transmission line to strengthen Bangladeshi power grids put into operation: The first transmission line of the Chinese-led Power Grid Upgrading and Renovation Turnkey Project was put into operation, creating a 132kV double circuit line between Niyamatpur and Rahanpur. The project, led by Fujian Electric Power Engineering Company (FEPEC), CCC Engineering Ltd. and Jiangsu Etern Co., Ltd, is set to create 99 substations and over 1000 kilometres of transmission lines, adding almost 35% of the total current national installed capacity by the end of the project. The Chief Representative of FEPEC, Shen Jianlong, says that the project would “help Bangladesh’s power grid achieve stable operation”. The substations and transmission lines would be operated by the Power Grid Company of Bangladesh. The core goal of the project is to enhance the transmission capacity of the power grid in the northwestern Rajshahi region and to make the power grid of 132kV connected and synchronized with 230 kV ring networks.

Chinese scientists developed a calcium-based rechargeable battery: A team of scientists from Fudan University published their findings in the reputed peer-reviewed journal, ‘Nature’, claiming to have developed a rechargeable calcium-based battery which could be a cost-effective and sustainable replacement to lithium-ion battery in the near future. The International Energy Agency (IAE) has forecasted an impending lithium-ion shortage from as soon as next year, which is why this experimental model is of extreme importance. Calcium is almost 2,500 times more abundant than lithium, serving as an ideal replacement. Their model has been able to stably charge and discharge completely over 700 times in room temperature, a first for calcium-based technology, although the team has not been able to construct a model working stably and consistently at room temperature. However, they are sure that with enough research and engineering into the question, their commercially-braided batteries would be a common alternative to lithium-ion batteries. The team also experimented with their calcium-oxide device and created a flexible textile battery that could power a smartphone, thus proving the scope of research and the promise this technology shows.

Chinese customs authority handled smuggling cases valued at 88.61 billion yuan in 2023: According to the General Administration of Customs (GAC), Chinese customs authority handled 4,959 cases with a total value of 88.61 billion yuan (12.47 billion USD). The cases are divided under four main categories, decided by the type of fraud committed. When sorted by their value, we see a trend emerging, as necessity product smuggling cases are valued the highest. 118 petroleum cases were handled with a total value of 18.24 billion, while 52 tax rebate frauds were caught with a total value of 14.25 billion yuan. Agricultural products-related smuggling involved a total value of 11.02 billion yuan through 866 cases. Finally, 697 cases involved “shui ke”, which is a term describing individuals smuggling products for either personal gain or those hired by organised criminals/gangs, with a total value of 6.01 billion yuan. GAC’s statement confirms that custom authorities would continue their heavy-handed, punitive approach to curb smuggling in China.

SOCIAL MEDIA CHATTER IN CHINA

“Gong Xi Fa Cai” craze takes over social media: Platforms such as Xiaohongshu and Weibo have been overrun with memes and posts about Andy Lau’s popular song “Gong Xi Fa Cai”, which is apparently become an integral part of celebrations of the Chinese New Year. Weibo users have commented about how ubiquitous this song has become, claiming that the song is played ‘everywhere where there is New Year celebrations.’ Baidu Statistics corroborates these claims, showing a cyclical rise in searches and streams of the song. Baidu also shows that the song is most popular in the Guangdong province, which social media users have suspected being related to Andy Lau’s roots. Xiaohongshu and Weibo, although overrun with memes about the excessive usage of the song, has not had many negative comments about the song. The song seems to have woven itself into the fabric of the New Year celebration, becoming a shared memory for the Chinese people celebrating the occasion.

INDIA WATCH

Indian banks, and the financial system as a whole, has been quite accommodating and supportive of up-and-coming industries and businesses, just as Chinese banks have been. India’s policies, however, differ from the Chinese policy in two crucial ways. Firstly, Indian financial support is not purely a ‘line of credit’ or a loan. It could be presented to corporations through subsidies, tax benefits and other scheme-based incentives. Secondly, the Indian policies not only support high-level production units working on questions of newer industries and of new innovations only, but also support startups and micro, small and medium enterprises (MSMEs) in existing fields of industry. This is because the state wants to promote internal innovations and wealth building, as well as build self-sufficiency while developing one of the most promising contributors to the Indian economy. Some case studies for this in the recent years have been the introduction of the Startup India scheme, Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE) scheme, as well as the recent Interim Budget presented. The ‘Startup India’ scheme began as an initiative to improve the startup culture in India, creating an innovate environment and expanding infrastructure and IPR facilitation. The CGTMSE scheme builds upon the same core goal by operationalising the Credit Guarantee Scheme (CGS) to enhance the credit delivery system and encourage lending. Even in the 2024 Interim budget, over 20,000 crores is assigned to schemes related to the MSME sector, including schemes such as PM Vishwakarma Scheme and Emergency Credit Line Guarantee scheme. The government’s rationale behind these policy decisions is two-fold. Firstly, by expanding the MSME sector of India, more entrepreneurs and innovators not only enter the Indian market, enhancing Indian products and reducing our foreign dependence, but also stay in India, thus reducing the ‘brain drain’. Secondly, expanding Indian MSMEs are globally competitive, thus adding an important layer to the economic foreign policy of the country.

Prepared By

Parth Prasad

Parth Prasad is a second-year undergraduate student pursuing International Relations and Public Policy. His interests lie in international economics, diplomacy studies as well as Indian foreign policy analysis. His interests and area of research often brings him on Indo-Sino relations, thus igniting his interest in understanding Chinese polity.