CiCM 18th July 2023

NEWS IN CHINA

China's Ministry of Industry and Information Technology and the National Financial Regulatory Administration have jointly released a guideline to boost the cyber security insurance sector's healthy development. This new type of insurance service is expected to enhance enterprises' ability to deal with cyber-security challenges, thus facilitating digital transformation for small and medium-sized businesses. The country intends to refine supportive policies and regulations, encourage wider adoption of cyber security insurance among enterprises, and nurture high-quality cyber security insurers. Furthermore, insurance companies will be incentivised to develop diverse cyber-security insurance services to cater to varying cyber-security risk management needs. The move reflects China's commitment to bolstering its cyber security infrastructure.
Beijing is set to appoint Liu Liehong, the chief of state-owned telecoms firm China Unicom, as the head of the new National Data Bureau, sources familiar with the matter have revealed. The bureau, established as part of a restructuring of party and state institutions, will oversee data security and digitalisation and is expected to play a crucial role in China's development of the digital economy. President Xi Jinping has emphasised the establishment of these new bodies by the end of 2024. The National Data Bureau, managed by the National Development and Reform Commission, will coordinate data infrastructure, integration, sharing, and development across China's economy and society. Liu Liehong, who has a background in engineering and extensive experience in the information technology sector, has been chairman of China Unicom since August 2021.
China's top economic regulator, the National Development and Reform Commission (NDRC), announced their plan to introduce policies aimed at restoring and expanding consumption to boost domestic demand. According to Jin Xiandong, director of the Office of Policy Studies at the NDRC, while the consumption market is showing signs of improvement, people's ability and willingness to spend are still weak, and the consumption infrastructure and environment need improvement. The NDRC will focus on stabilising spending on big-ticket items, promoting consumption of automobiles and electronic products, expanding rural consumption, and enhancing the overall consumption environment. The commission will also prioritise stabilising employment, promoting income growth, and fostering new formats and models of consumption. Despite challenges, China's economy remains resilient with strong fundamentals and policy support. Official data released on Monday showed China's GDP growth of 6.3 per cent in the second quarter, slower than expected.
China's pioneering astronaut, Yang Liwei, who currently serves as the deputy chief designer of the nation's manned spaceflight project, has revealed that China is developing its next-generation manned spacecraft. The spacecraft, set for its maiden flight between 2027 and 2028, features a streamlined modular design with propulsion and return modules, allowing it to carry up to seven astronauts. Yang disclosed this plan during a lecture at South China Normal University, also hinting that the spacecraft will be used for a manned lunar mission, construction of the China Space Station, and deep space exploration. Additionally, China unveiled details about its upcoming manned lunar mission before 2030, which includes an upgraded spacecraft, a lunar lander, and a next-generation carrier rocket.
A new report by Beijing-based venture capital firm CyanHill Capital highlighted the significant role of China's internet platform companies in the country's economy and society. The companies employ over 200 million people, including both full-time employees and gig workers, making them crucial for economic and social stability. Despite the downsizing of some Big Chinese Tech firms due to an economic slowdown and regulatory challenges, they remain among the largest employers in the country. The report revealed that truck drivers were the largest group of gig workers at 16.5 million, followed by ride-hailing drivers and delivery riders. Premier Li Qiang also recently expressed strong support for the Internet industry, recognising platform companies as engines of innovation and job creation. However, China still faces a job crisis, particularly among the youth, leading many to turn to Internet platforms for flexible employment. The report also suggested that platforms should absorb more workers, with the advancement of artificial intelligence and diverse demand playing crucial roles.

SOCIAL MEDIA CHATTER IN CHINA

Chinese Social Media Fawns over Flower Girl: A flower girl dressed in the ancient attire of the Song Dynasty has captured the attention of Chinese social media with her enchanting presence along the banks of West Lake in Hangzhou, China. Chen Xiyue, a graduate specialising in culture relic protection and restoration, embarked on a public benefit activity, distributing lotus flowers and bestowing blessings of good fortune upon passersby. Accompanied by her friend Yiqing, who dons Tang Dynasty attire, the duo aims to infuse a touch of romance into the modern world. Chen's unexpected popularity highlights the enduring allure of traditional Chinese culture. Inspired by the flower peddlers of the Song Dynasty, Chen and Yiqing embarked on their mission, spanning from Xiling Bridge to the Nanshan Campus. This endeavour resonated with the netizens as a gesture of appreciation for China's traditional aesthetics. Chen sees traditional Chinese culture as a treasured legacy, motivating her to learn and promote its beauty further.

INDIA WATCH

A recent report by Beijing-based venture capital firm CyanHill Capital reveals that China's internet platform companies are responsible for employing over 200 million individuals, including full-time employees and gig workers. This employment figure highlights the critical role of the sector in bolstering the country's economic and social stability. Amidst an economic slowdown and regulatory challenges faced by Chinese Big Tech firms, these internet enterprises remain among the largest employers within the nation's labour force of 880 million. Notably, the largest group of gig workers comprises 16.5 million truck drivers. Their occupation has been transformed by the emergence of online platforms, significantly improving their efficiency and order-taking processes. Following truck drivers, the second-largest group of platform workers comprises around 7 million ride-hailing drivers, representing one of the fastest-growing occupations in China in recent years. The number of new licenses granted to drivers has surged by 32.6% in 2022, and the country continues to witness a high influx of new drivers, with the daily rate being five times higher than the previous year. Another substantial group of gig workers, totalling 5 million, are delivery riders, who have expanded their services beyond food delivery to include groceries, medicine, and flower bouquets, especially during the Covid-19 pandemic. Premier Li Qiang's recent meeting with Big Tech firms emphasised the government's strong support for the internet industry. China's internet platform companies, encompassing a wide range of online services, have generated more than 240 million jobs for 27% of the working-age population in 2021, as the China Information Economics Society reported. However, China faces a concerning job crisis, particularly for youth aged 16 to 24, with unemployment reaching a new high of 20.8% in May. This situation has led many job seekers to seek flexible employment online. Ride-hailing driving has also become especially popular, prompting some Chinese cities to halt issuing operation permits to manage driver overflow. India like China, has also witnessed the rise of the gig economy, with platforms like food delivery, ride-hailing, and e-commerce creating employment opportunities. However, India faces a significant challenge of job creation, especially for its growing youth population. With its burgeoning tech sector and startup ecosystem, India holds much potential to foster innovation and harness the appropriate technological advancement to drive economic growth. The downsizing of some Chinese Big Tech firms due to regulatory challenges is a noteworthy aspect. As India also grapples with regulating its digital ecosystem, studying the Chinese experience can provide valuable lessons for striking a delicate balance between innovation and regulation, ensuring fair competition, consumer protection, and data privacy.

Prepared By

Ramyani Kundu

Ramyani Kundu is an Undergraduate student from Shiv Nadar IoE, pursuing a B.A.(Research) English with a Minor in International Relations. Her research interests include understanding the role of narratives in geopolitical relations and foreign policy's of nation-states. She further posits interest in South/East Asian literature and Continental philosophy