CiCM 24th-25th August 2024

NEWS IN CHINA

Philippines and China Vessels Collide in South China Sea: On Sunday, 25th August, a Chinese Coast Guard (CCG) ship slightly collided with a Philippine vessel. According to the CCG, the Philippine vessel illegally entered adjacent waters of Xianbin Jiao of China’s Nansha Qundao. They stated that the intrusion was unauthorised by the Chinese government and that the CCG implemented lawful action to control it. Gan Yu, a CCG spokesperson, said that the Philippine vessel 3002 did not heed multiple warnings from China. The vessel collided with the CCG vessel 21551, which was conducting usual law enforcement activities. Gan Yu, described the incident as“unprofessional and dangerous”. He urged the Philippines to cease encroachments on China's rights and avoid further provocations, warning that they "will bear all the consequences" if they continue.
China to Focus on Coordinated Green and Digital Development in Emerging Technologies, Regions, Various Sectors, and Traditional Industries: On Saturday, the Chinese Office of the Central Cyberspace Affairs Commission along with nine central departments released guidelines for coordinated transformation toward digital development and green growth. The guidelines emphasise promoting green, low-carbon development of digital industries and supporting the green transformation of multiple sectors via digital technology. The goal of the guidelines is to bolster the process of coordinated transformation in digital transformation and green growth, support integrating green, low-carbon industries with emerging technologies, and encourage traditional industries to integrate digital and green technologies. Additionally, the guidelines emphasise the fundamental elements and outline the responsibilities of authorities, universities, industry associations, businesses and research institutes to encourage the transformation. The publication includes a triadic mechanism that elucidates technological systems, basic capacity, and industrial systems for digital-green transition. Furthermore, regions have been asked to support high-quality development, creating new quality productive forces, leveraging local resources and creating specialised industries and advantages that boost coordinated digital and green transformation.
Increase in Medical Insurance Fraud in China: In response to the involvement of organised criminal networks in medical insurance fraud, China will be taking stern measures. This is because such activities undermine the medical system. As per the latest data for 2021-23, there has been an increase in medical insurance fraud being committed by a variety of perpetrators. It was reported that the gang used people’s medical insurance or persuaded them to illegally dispense drugs at community health centres. Criminals utilise the medical insurance system to acquire large amounts of medication and sell it to other vendors at higher prices. Almost 55 percent of cases of medical insurance fraud were committed by insured persons. Experts have commented that there is a need to further increase the national medicine supply security code in a way that underscores transparency and accountability in the medical distribution process. They said that there needs to be policy intervention across the stages of medical regulation. China’s National Healthcare Security Administration stated that data from 2023 showed that upon inspection by Chinese medical insurance authorities, 451,000 out of 802,000 designated medical institutions were found to be with violations.
People’s Bank of China to Implement Policies to Improve Economic Growth and Economic Recovery: In an interview on Saturday, PBC Governor, Pan Gongsheng, said that the People’s Bank of China (PBC), has directed three significant monetary policy adjustments to target economic growth, and support for counter-cyclical and cross-cyclical alterations to push economic recovery. Pan said the financial system is generally stable and challenges in important sectors are being resolved. He said the measures will underscore financial opening-up by promoting transparency, predictability and stability in technology finance, green finance, inclusive finance, digital finance, and pension finance. The third plenary session of the 20th Central Committee of CCP targeted deepening reform in the financial system by enhancing the central bank system and monetary policy transmission. Cong Yi, a professor at Tianjin School of Administration, commented that the policies will ensure the development of the monetary, fiscal and industrial sectors. Wen Bin, a chief economist at China Minsheng Bank, said that following the global trend, the PBC is likely to cut interest rates or the reserve requirement ratio by the end of 2024. He added that low interest rates, a stable real estate market, and policies that encourage domestic consumption will help improve willingness to borrow and spend.
Chinese Commerce Ministry Calls US to Withdraw Sanctions: The Chinese Commerce Ministry (MOFCOM) criticised the US’s sanctions on Chinese companies for their alleged engagement in the Russia-Ukraine conflict. It said on Sunday, 25th August, that this is an example of “long-arm jurisdiction and unilateral sanctions” and promised to undertake required measures to protect Chinese companies’ rights and interests. The US implemented sanctions on over 400 companies and individuals for allegedly aiding Russia in the Russia-Ukraine conflict. 42 Chinese companies were put on the US’s export control “entity list”. The statement said that the sanctions breach international trade orders and rules, hinder usual economic exchanges, and threaten the global industrial and supply chains. It called for the US to effectively stop its sanctions and said that necessary actions would be taken.
China to Focus on Increasing Foreign Direct Investment: To accelerate foreign direct investment in China’s emerging economy, authorities have withdrawn restrictions on manufacturing access. The State Council implemented a 24-point action plan at the start of 2024, and this included measures to widen market access in important Chinese industries, promote equal participation of foreign companies in government bidding, and push the exchange of international business personnel. Data indicates that foreign investment has relatively increased over the past decade, reaching over 500 billion yuan ($70 billion) in H1 of 2024. There was an annual increase of 14.2 percent in registered foreign-funded companies, reaching 27,000. Given the external tensions and protectionist trends, FDI has continued because China possesses a growing market, infrastructure and logistical networks, robust manufacturing base and supply, and skilled research and engineering personnel. Tariffs and technological restrictions from the West have had adverse effects on China’s economy, especially on China’s exports and capital inflows. At the same time, they have broken the global supply chain and increased the cost of production for the West. Additionally, the restrictions have enhanced China’s technological self-reliance. Foreign companies have also started entering the service sector, like retail, entertainment, education, culture, medical care, financial services and more. China’s large consumer market for diverse products is conducive to global investors.

SOCIAL MEDIA CHATTER

Chinese Gymnast Stuns Social Media with Down-to-Earth Personality: Zhou Yaqin, a Chinese gymnast and Paris Olympic silver medallist has sparked interest on social media in working at her family restaurant after coming back home. A customer filmed a video of her working and serving tables in her Olympic sportswear. Her father commented that she even helps with cleaning and that the restaurant has become successful because of her accomplishments. Zhou's Weibo account, boasting 117,000 followers, has sparked a wave of admiration on social media. Netizens are captivated by her humble lifestyle, despite her triumph at the Paris Olympics, and have praised her unwavering support for her family’s restaurant. Her fans have been vocal about her “golden heart” and have celebrated her incredible talent and perseverance, as she continues to dominate in gymnastics. The affectionate nickname ‘Queen Qin’ has quickly gained traction, symbolizing her status as both a champion and a beloved figure in the hearts of her followers.

INDIA WATCH

Indian Government Outlines New Unified Pension Scheme: Xinhua, a Chinese news agency, reported on the Indian government’s approval of the Unified Pension Scheme for federal government employees. It reported Ashwini Vaishnaw, the Federal Minister of Information and Broadcasting, saying that employees could choose between the Unified Pension Scheme or the National Pension Scheme that has already been enforced previously. The article stated that the federal government released a statement on Saturday, 24th August, that post-retirement a pension of 50% of the average basic pay of an employee over the last 12 months of their superannuation for a service of a minimum of 25 years would be given to them. Proportionately, a payment of 10,000 rupees would be given on the superannuation after a minimum of 10 years of service. The statement added that the family of the employee would be given an assured family pension at the rate of 60% of the pension after the employee's demise.

Prepared By

Sanjana Shah

Sanjana Shah is a graduate in International Studies with a minor in Journalism from FLAME University, Pune. Her interests lie in exploring the nuances and intricacies of geopolitics and understanding the complexities that arise from the socio-political-economic nexus. She is deeply interested in history, defence and security studies, and humanitarian studies.