CiCM 20th February 2025

NEWS IN CHINA

China Unveils Green Sovereign Bond Framework to Streamline the Issuance: The Ministry of Finance released the “Green Sovereign Bond Framework” which will be used to issue Chinese green sovereign bonds overseas. Moreover, the framework will be used to attract international funds for green and low-carbon development and to promote the construction of a beautiful China. The proceeds from the green sovereign bonds will be used for green expenditures under the central government budget. The proceeds will be used to achieve several goals like climate change adaptation, natural resource protection, pollution prevention and control. In the past five years, nearly 300 billion yuan has been allocated for environmental measures to protect the blue skies, clear waters and clean land. Additionally, more than 88 cities in northern China have been selected for heating transformation, promoting energy consumption revolution, protection of vital river basins like the Yangtze River and the Yellow River, exploration of soil pollution control and restoration projects for mountains, rivers, forests, farmlands, lakes, and deserts.

Many Universities in China Adopt DeepSeek-related Courses: Shenzhen University in Guangdong Province has introduced an artificial intelligence (AI) course based on DeepSeek, making it the first of its kind in the city. Launched in collaboration with Tencent Cloud and the National Engineering Laboratory for Big Data System Computing Technology, the course aims to provide students with a comprehensive understanding of AI’s history, key technologies and applications. The course covers AI fundamentals, technical principles and DeepSeek’s practical applications in artificial intelligence-generated content (AIGC) and natural language processing. The courses are also expected to cover curriculum on ethical considerations such as security and privacy. On similar lines, Zhejiang University has also introduced an online course series on DeepSeek for students, faculty and the general public. Meanwhile, several top Chinese universities have begun to deploy DeepSeek for advanced academic applications. Shanghai Jiao Tong University has integrated DeepSeek into mathematics courses to enhance problem-solving accuracy and reasoning skills. Renmin University has implemented the full-scale DeepSeek R1 model for research, teaching and campus administration, boosting AI-driven learning and efficiency.

Tax Incentives Promote Innovation and Development of Emerging Industries: In 2024, China cut taxes and fees by 2.63 trillion yuan to support technological innovation and advanced manufacturing, aiming to boost self-reliance in critical technologies and strengthen its competitive edge. According to the latest data from the State Taxation Administration, the tax incentives for research and development in companies and technology transfers was worth 806.9 billion yuan in 2024. Exemptions on new energy vehicle purchases along with tax incentives for high-tech enterprises and emerging industries amounted to 466.2 billion yuan. China also offered an additional 132.8 billion yuan in value-added tax deductions to overcome bottlenecks in core technologies and attract talent in sectors like integrated circuits. Lu Xuhong, deputy head of the Beijing National Accounting Institute stated that such measures can help taxpayers to save on operating costs due to reduction in R&D expenses. Efforts to promote innovation have led to sales in high-tech industries rising by 9.6 percent faster than the national average and technology commercialization service rising by 27.1 percent year-on-year. Sales in the advanced sectors like computer manufacturing, telecommunications, radar equipment, and intelligence equipment manufacturing also saw growth of 14.4 percent, 19 percent, and 10 percent respectively.

Guangzhou Plans to Boost Industrial Growth and Innovation: According to the government work report released by the Mayor of Guangzhou, Sun Zhiyang, Guangzhou plans to focus on quality improvement, brand building and enterprise growth to develop globally competitive brands, large enterprises and industrial clusters. In 2024, the city’s regional GDP grew by 2.1 percent year-on-year, reaching 3.1 trillion yuan ($426.7 billion). Guangzhou aims to accelerate six emerging pillar industries, cultivate five strategic leading industries and strengthen four industries with distinct advantages. A major achievement in 2024 was the establishment of Guangzhou’s first 12-inch intelligent sensor wafer manufacturing line, boosting the production of integrated circuit wafers, analog chips and service robots by 68.9 percent, 23.7 percent and 22 percent, respectively. The city's drone and LCD screen production also surged by 2.9 times and 2.3 times, respectively. Additionally, Guangzhou now hosts 24 unicorn companies, ranking ninth globally. Sun emphasized the need to drive the automotive industry’s transformation through electrification, intelligence, and internationalization while continuously optimizing its industrial ecosystem.

China Completes Drilling of Asia’s Deepest Vertical Well: The China National Petroleum Corporation (CNPC) announced that it has completed the drilling of Asia’s deepest vertical well and second deepest in the world with the borehole reaching a depth of 10,910 metres. The well, known as “Shenditake 1”, is located in the Taklimakan desert in the Tarim Basin of Xinjiang Uyghur Autonomous region. The completion of the well will not only strengthen China’s indigenous ultra-deep oil and gas exploration capabilities but also provide scientists with a better understanding of the Earth’s history and geological evolution. The Tarim Basin is home to China’s largest deep-earth oil and gas reservoir, with majority of oil and natural gas found below 6000 metres. The drilling of the well has achieved several other feats like the deepest liner cementing, deepest wireline imaging logging and fastest onshore drilling to surpass 10,000 meters. Besides oil and gas exploration, "Shenditake 1" has provided Asia's first 10,000-meter-deep samples from earth’s core, offering data for research in geology and geothermal studies. Chinese scientists have also compiled the country's first comprehensive ultra-deep stratigraphic profile using indigenous drilling instruments.

SOCIAL MEDIA CHATTER

Microdrama's Popularity Surges on Chinese Digital Media Platforms: With attractive titles and imaginative stories, Microdramas have gradually captured the attention of the Chinese netizens. Microdramas, also known as duanju, are professionally produced short-form dramas that are usually adapted from web novels or based on original scripts. Strating around 2018, microdramas are now usually produced for short-video platforms like Douyin and Kuaishou. In 2024, the microdramas earned an estimated revenue of 50.5 billion RMB, surpassing the figures of the traditional box office. As the microdrama content transitions from vertical to horizontal format, long-form video streaming platforms like Tencent, Youku and Mango TV are also funding their horizontal microdramas. The rise of microdramas has also boosted related businesses and created fresh opportunities for industry professionals. They also provide instant gratification, effortless vertical viewing and seamless access across multiple platforms, thus catering to the fast-paced digital era. Platforms like Douyin also introduced Microdrama specials during the Spring Festival by inviting actors and well-known celebrities. Owing to its growing popularity, Douyin removed 585 microdramas for showing inappropriate content last month.

INDIA WATCH

China Media Focuses on Trump’s Criticism for Tesla’s India Factory: An article in Chinese media reported on the U.S. President Donald Trump’s criticism on Tesla’s potential plans to build a factory in India, calling it "unfair" to the United States. The article cites Trump’s statement on India’s high automobile tariffs, an issue which he had also raised during Prime Minister Narendra Modi’s visit last week. While both nations agreed to negotiate a trade deal, Trump argued that selling cars in India under the current tariff structure was "impossible". The article also noted that Tesla CEO Elon Musk has long criticized India’s 100 percent import duties on electric vehicles, which favour local automakers like Tata Motors. It argues that despite being the world’s third-largest auto market, India's EV adoption remains low. To encourage investment, the Indian government introduced a policy in March 2023, reducing import duties to 15 percent for automakers investing at least $500 million in local manufacturing. Thea article claims that Tesla is yet to manufacture vehicles in India but has identified showroom locations in New Delhi and Mumbai while recruiting mid-level staff. The report further emphasizes on Trump’s warning to impose reciprocal tariffs on any country that taxes U.S. imports, potentially escalating trade tensions.

Prepared By

Ruchir Ketkar

Ruchir Ketkar is a First year student pursuing Masters in Diplomacy, Law and Business at OP Jindal Global University. After completing graduation in Political science, he found his interest in International Relations and Global Affairs. With a keen inclination towards security and conflict studies, he has also authored several articles and research papers. He also tries to keep himself updated with the happenings around the world and tries to analyse them using his perspective and understanding.