CiCM 16th June 2023

NEWS IN CHINA

American memory chip maker Micron announced that it has plans to invest 4.3 billion yuan on upgrading its packaging unit in Xi’an. This announcement made via the company’s WeChat account came merely weeks after Beijing imposed a ban on Micron products being sold in China. Micron plans to acquire the operations of its outsourcing partner, the Taiwan-listed Powertech Technology which currently owns the equipment and provides workers. Micron CEO Sanjay Mehrotra also added in the statement that a new building will be added to the site to meet Chinese consumer demands. This deal however requires Chinese regulatory approval and if carried out successfully will add 1400 employees to the company’s local payroll. The acquisition price of Powertech will be subject to its operation value, which is currently estimated around US$50-60 million.
The Suzhou Metro Line 11 which connects Suzhou City to Kunshan and Shanghai, opened for trial use on Friday. A test ride for about 10000 people was conducted and public opinion was collected. Another day of testing is scheduled to follow on the coming Saturday. Passengers were delighted by the possibility of ease of travel, as Line 11 is connected to the Shanghai Metro and considerably cuts down on travel time. The project is expected to herald local tourism around Shanghai Disneyland and Suzhou’s scenic landscapes. The line which began construction in 2018 will launch officially, later this month.
Zhang Li, former Chinese government employee and co-founder of the Guangzhou R&F Properties agreed to be extracted from the UK to the US, to face trial there on charges of bribery. It is alleged that Zhang spent an estimated US$40,000 to US$70,000 to bribe relevant officials into helping secure contracts for the firm in California. The US also accuses him of having bought gifts and paid for the accommodation of an official who was visiting China for a vacation. The tycoon who had been arrested in Heathrow Airport last year, previously evaded charges by confining himself to his luxury penthouse and paid a conditional bail of US$19.1 million, in understanding with a court. The latest UK court filing however reveals that Zhang now “consents to extraction to the USA on conditional bail.”
The Ministry of National Defense announced that the People’s Liberation Army (PLA) will send troops to join the Khaan Quest 2023 multinational peacekeeping exercise in Mongolia. Ministry Spokesperson Zhang Xiaogang said that the PLA troops will be sent in mid-June on behest of the invitation extended from the Mongolian defense ministry. The annual military exercise held in the Five Hills Area, initially emerged as a joint international exercise between US and Mongolia. China first sent PLA troops to the Khaan Quest back in 2015.
China’s first floating oil factory with digital twin technology was delivered on Friday. The Haiyang Shiyou 123 (Offshore Oil 123) is a floating production storage and offloading unit (FPSO) which was delivered in the Jiangsu Province to process oil and gas on sea itself - eliminating the need for pipes to transport fuel from offshore to onshore units. The FPSO is equipped with over 8000 sensors that are connected to the ‘brain’ of the ship that generates commands to modify the ship’s production. Additionally, the Haiyang Shiyou 123 has a virtual twin in Shenzhen that will serve as an onshore unit to monitor the ship’s production in real-time. Both features are expected to seamlessly integrate land-sea operating systems and facilitate faster responses to emergencies.

SOCIAL MEDIA CHATTER IN CHINA

Messi-fan’s match intrusion sparks divided opinions on social media platforms: A teenage Messi-fan interrupted the friendly match between Argentina and Australia, that was being held in Beijing’s new Workers’ Stadium on Thursday. The fan dashed onto the field while the match was underway, prompting security to chase him down. The young fan managed to hug a shocked Lionel Messi who eventually reciprocated his gesture, and even later high-fived Argentinian goalkeeper Emiliano Martinez as the stadium cheered him on. Security was unable to catch up with the boy until he tripped briefly; Beijing police later announced that he was detained and banned from similar matches for a year. His antics generated a flurry of social media posts under the tag #球迷冲进球场抱梅西#, with some responding critically. The majority however discussed the joys of meeting one’s idols and even went as far as describe the fan’s carefree actions as much needed respite from strict regulations in Chinese society. Interestingly his choice of footwear- a pair of shoes from badminton brand Yonex, also saw a massive jump in Taobao search value. Netizens were quick to point this out under the tag #梅西球迷球鞋搜索量暴涨#.

INDIA WATCH

The semiconductor manufacturing industry has become a tool of economic warfare, to help China and other countries like the US and Taiwan prioritise their national security visavis others. China’s recent ban on Micron products is but a retaliatory move against the US earlier imposing export controls on the sale of American chips to Chinese companies- limiting the latter’s production of supercomputers and other technological equipment. Taiwan’s biggest insurance in the straits crisis for the longest time was its capacity to manufacture chips. India does not have much collateral in the industry unlike its global peers. For instance, it had previously opened a window for access to a $10 billion scheme in 2022, under the Ministry of Electronics and IT (MeitY) which only attracted three proposals to set up fabrication units: from a Vedanta-Foxconn joint venture, the international consortium ISMC, and IGSS Ventures. The first window was only open for 45 days and quickly ran into trouble, as all three applicants faced issues in setting up units. A second window to attract bigger names will remain open till the end of 2024. A part of general opinion has often optimistically cited the Indian workforce and education system as drivers of a successful domestic semiconductor industry. While it is true that these factors can be decisive catalysts, the failure of the first window shows that problems and solutions cannot be so precariously simplified. The first window failed because of inability to procure licences, lack of technology partners, and delayed mergers – largely technical issues. Moreover, industry experts have also criticised the lack of industry-relevant training even within science and technology specialisations. India needs to constantly keep pushing at public-private partnerships of the global nature, to cultivate technical expertise and get its big break.

Prepared By

Tamiliniyaa Rangarajan

Tamiliniyaa Rangarajan is a fourth-year undergraduate student of International Relations and Governance Studies, at Shiv Nadar University. Her research interests are geared towards understanding the implications of political economy, and culture and soft power- applying these to the Chinese context. In her spare time, she likes to experiment with photography and pick up foreign languages.