CiCM 14th March 2024

NEWS IN CHINA

Former China Development Bank Vice President Zhou Qingyu Prosecuted for Bribery: Zhou Qingyu, previously serving as the Vice President and a member of the Party Committee of the China Development Bank (CDB), faced public prosecution by the Changchun Municipal People's Procuratorate for allegedly accepting bribes and leveraging his influence for wrong reasons. The allegations included providing illicit benefits in exchange for services related to loan financing, project contracting, and personnel arrangements, exploiting his senior positions within the bank. The National Supervisory Commission concluded its investigation, leading to a review and subsequent prosecution by the People's Procuratorate of Changchun City, Jilin Province. This case adds to a string of investigations involving former vice presidents of the CDB, underscoring the broader financial anti-corruption efforts within China's banking sector. Zhou's investigation began in May 2023, occurring less than a year after his dismissal in July 2022 and his expulsion from the party in November 2023, highlights the government's crackdown on corruption. Zhou's extensive career in finance, transitioning from the Agricultural Bank of China to pivotal roles within the CDB, underscores the significant fall from grace of a once-prominent banking figure.

Gas Pipeline Leakage Triggers Deadly Explosion in Yanjiao, Hebei Province: On March 13th, a catastrophic explosion in Yanjiao Town, Sanhe City, Hebei Province, resulted from a gas pipeline leakage during transportation, as disclosed by Liu Fulai, the leader of the expert team investigating the accident. The incident, occurring at 7:54 AM, led to the tragic loss of 7 lives and left 27 individuals injured. By the evening of the same day, emergency response teams had largely concluded their rescue operations. As a part of safety measures, supply of natural gas was stopped in nearby areas and residents within 500 metres of the location were relocated. The aftermath saw the rapid transportation of the injured to hospitals, with 14 already discharged following medical treatment. The detailed investigation into the cause, pinpointing a gas leak as the trigger for the explosion, underscores the critical importance of stringent safety measures in the handling and transport of hazardous materials.

Southwest China Initiates Trial for Pioneering Low-Altitude Air Route: Southwest China heralds a new era in aviation with the trial operation of an interprovincial low-altitude air route - connecting Chongqing Municipality to Zigong City in Sichuan Province. This development, marked by a demonstration flight under Visual Flight Rules (VFR) with a Cessna 172 aircraft, signifies the inception of a 'highway in the sky'. The route facilitates pilots to navigate using visual landmarks on the ground, enhancing the efficiency of air travel within the region. A memorandum of cooperation between Chongqing and Sichuan underlines this breakthrough, focusing on meteorology information exchange, support services, and enhancing regional transportation. While still in its trial phase, with expectations for regular operations to commence later this year, this initiative is set to significantly contribute to China's burgeoning low-altitude economy which is projected to expand to a 2 trillion yuan industry by 2030 from the current scale of 500 billion yuan.

China Dismisses Claims of "International Waters" in Taiwan Strait: China asserts that the Taiwan Strait, a critical global shipping route, does not contain any "international waters," countering claims by Taiwan's Democratic Progressive Party (DPP) and the United States. Chen Binhua, spokesperson for the State Council Taiwan Affairs Office, claimed that the entire strait falls within Chinese territorial jurisdiction, contradicting the DPP's stance and the U.S. assertion regarding "navigation freedom." The classification of waters in the Taiwan Strait, as per the United Nations Convention on the Law of the Sea and Chinese domestic law, includes internal waters, territorial sea, contiguous zone, and exclusive economic zone, without any acknowledgment of "international waters." Chen criticized the DPP for compromising national interests and pursuing "Taiwan independence" by seeking international support, especially from the U.S., thereby misrepresenting the legal status of the strait and its importance to global trade.

China Unveils Ambitious Plan for Equipment Upgrade and Consumer Goods Trade-In: China’s state council launches an initiative to rejuvenate its economy through the action plan for promoting large-scale equipment renewals and trade-in of consumer goods for new. This strategic initiative, which seeks to stimulate both investment and consumption, outlines 20 detailed tasks within 5 principal areas – updating equipment, facilitating trade-ins for consumer goods, enhancing recycling efforts, improving standards and reinforcing policy support. Specifically, the plan aims to achieve a more than 25% increase in equipment investment in industries such as agriculture, construction, transportation, education, cultural tourism and medical by 2027 compared to the 2023 levels. This approach aligns with the government’s broader objectives of domestic demand expansion, highlighted in the annual Work Report, making a strategic pivot towards a greener and more digitally integrated economy. With an anticipated annual demand for equipment updates exceeding 5 trillion yuan, the strategy involves fiscal incentives, tax benefits aiming to overcome the reluctance among businesses and consumers to replace old equipment and goods for energy-saving and digital advancements.

China appoints Chen Xiaodong as new foreign vice-minister amid diplomatic reshuffle: Chen Xiaodong, China’s former ambassador to South Africa and Singapore, has been appointed as the new foreign vice-minister, making a significant move as Beijing seeks to strengthen its international relationships amidst growing geopolitical tensions. Chen, 58, who recently concluded a three-year term in South Africa – a country he considers his ‘second home’ – has a diverse diplomatic background, having also serves as China’s assistant foreign minister with responsibilities across Africa, West Asia, and North Africa. His career, which began in 1987, includes pivotal roles such as China’s ambassador to Iraq and a significant position in London. This appointment comes at a critical time for China as it navigates complex relationships with Russia, India, and seeks to bolster ties with emerging economies against the backdrop of rivalry with the US-led West.

SOCIAL MEDIA CHATTER IN CHINA

Balenciaga's Tape Bracelet Sparks Mockery and DIY Imitations in China: Balenciaga's latest fashion accessory, a bracelet resembling a roll of clear sticky tape, has become the subject of widespread ridicule on Chinese social media. Priced at approximately US$3,300 and part of the Spanish brand's Fall/Winter 2024 collection showcased at Paris Fashion Week, the chunky jewelry piece has drawn comparisons to everyday tape, prompting netizens to create humorous DIY versions. Influencers and social media users have not held back, with one Douyin user sharing videos of homemade tape rings, earrings, and necklaces inspired by the design. The bracelet's debut follows Balenciaga's tradition of creating conversation-starting pieces, such as a leather pouch resembling a garbage bag and a handbag encased in caution tape. This playful critique comes amidst a broader dialogue on luxury fashion's provocations and the opulent tastes of the wealthy, further highlighted by past viral trends and luxury items that blur the lines between high fashion and everyday objects.

INDIA WATCH

Along with China’s efforts to boost consumption by creating domestic demand, the recent “Action Plan for Promotion of large-scale equipment updates and Trade-in of consumer goods for new”, also marks a significant step towards encouraging sustainable business practices and achieving a “green transformation” across industries. India too has embarked on a green transformation with the help of various government measures such as the PLI scheme for battery storage manufacturing units in India. This initiative aims to boost domestic production of Lithium-ion batteries, a key component for electric vehicles and renewable energy storage. In addition to this, the government has adopted mandates and regulations on minimum recycled content requirements as well as Public Lighting Programs which aim at large-scale adoption of energy-efficient LED lighting. India’s consumer goods market is a behemoth, expected to reach $220 billion by 2025. Recognizing the environmental impact of this vast market, the Indian government and various stakeholders are taking steps to promote a green transformation. India had previously set energy efficiency standards for certain appliances, incentivizing manufacturers to produce more energy-saving models such as the Energy Star program and the extended producer responsibility (EPR) authorization which makes the producers responsible for the end-of-life management of their products, encouraging them to design products with recyclability and responsible disposal in mind. These have been supplemented by sustainability packaging initiatives like the usage of recycled paper and biodegradable plastics in companies such as Marico, to reduce environmental footprint.

Prepared By

Alisha Mehra

Alisha is a 2nd year student pursuing Development Studies with a minor in International Relations at IIT, Madras. Her interdisciplinary course offers her a unique perspective on Public Policy and Global Polity issues. She is passionate about China Studies, Economics and Climate and loves to explore the interconnections between the them.