CiCM 28th-29th September 2024

NEWS IN CHINA

Xi Jinping Chairs CPC Leadership Meeting to Analyse Economic Situation: The Political Bureau of the CPC Central Committee held a meeting on September 26, presided over by Xi Jinping, to review the economic situation and plan future work. The meeting highlighted that China’s economy remains resilient, with strong market potential, despite new challenges. Efforts to deepen reforms, expand domestic demand, and maintain economic stability were emphasised. The need for proactive fiscal and monetary policies, including issuing special bonds and stabilising the real estate market, was stressed. Support for private sector growth, consumption, and foreign investment was also prioritised. Furthermore, measures such as adjusting policies restricting housing purchases, lowering interest rates on existing housing loans, and promptly improving policies related to land, fiscal and tax matters, and finance to promote the establishment of a new model for real estate development were also discussed to uplift the economy. Additionally, ensuring employment, stabilising essential goods prices, and promoting agricultural production were underscored for maintaining social stability and high-quality development.
China and Syria Celebrate 75 Years of Chinese National Day in Damascus: On September 29, the Chinese Embassy in Damascus (Syria), alongside the Syrian government officials, celebrated the 75th Founding anniversary of the People's Republic of China. The present Chinese Ambassador to Syria, Shi Hongwei highlighted China’s economic achievements and its global role, re-iterating China's support for Syria against unfair foreign interference and sanctions. In context to the same, Syrian Minister Iyad Mohammad al-Khatib repeatedly praised China’s development model and recognised the deep-rooted historical ties between the two friendly nations, emphasising recent high-level visits and cooperation agreements.
Tesla's Shanghai Factory Delivers 1 millionth Export Product: Tesla announced that its Shanghai Gigafactory has produced and exported its one-millionth China-made electric vehicle. The milestone was marked by a shipment of Tesla Model 3 cars to the UK. Serving as a key production and export hub, the Shanghai factory supplies markets in Europe and Asia. The Shanghai facility, fully designed by Tesla, integrates key manufacturing processes, allowing it to produce a vehicle every 30 seconds with over 95% of parts sourced locally. In parallel, Tesla’s Shanghai Energy Storage Gigafactory located in Lingang is rapidly progressing, with over 60% of the main building completed. The factory is expected to begin operations in early 2025, producing 10,000 Megapack energy storage batteries annually, catering to the growing global demand for renewable energy.
China cuts 7-day Reverse Repo Interest Rate to boost Economic Growth: China’s central bank lowered the interest rate of seven-day reverse repos from 1.7% to 1.5% as part of policies that support more stable economic growth for the populace. In order to enhance counter-cyclical monetary policies, this adjustment was brought in; alongside which the People’s Bank of China conducted 278 billion Yuan worth of 14-day reverse repos and announced a sharp cut in the reserve requirement ratios by 0.5 percentage points to stimulate liquidity and growth. This fresh new measure is expected to improve the market confidence, according to analysts, amidst the ongoing economic challenges the populace is facing.
China and Russia conduct Joint Military Training, set to Launch their Fifth Joint Military Patrol in Pacific Waters: China and Russia concluded an 18-day joint military exercise in the Sea of Japan and Sea of Okhotsk, focusing on maritime defense and cooperation. The Northern/Interaction-2024 drills involved over 10 warships and 30 aircraft, testing joint tactical command and operational coordination. The exercises, which ran from September 10 to 28, aimed to strengthen strategic cooperation and improve capabilities in complex combat scenarios. Following the drills, both nations' navies will launch their fifth joint maritime patrol in Pacific waters. Experts highlight the growing military ties between China and Russia, marked by an increasing number of joint operations, signaling mutual trust. This is their second joint patrol in 2024 alone.

SOCIAL MEDIA CHATTER

Efforts to Tackle Growing Unemployment Gains Traction Amidst Viral Stories of Youth Settling for Lower-Level Jobs: China’s central government launched a 24-point plan to address rising youth unemployment, focusing on creating "high-quality jobs" and improving employment opportunities. The policy, jointly issued by the State Council and the Communist Party of China, prioritises job creation in new projects, encouraging businesses to invest in lifelong training, and mandates universities to align with the government’s economic goals. Programs with low employment outcomes will be scrapped, and companies must invest at least 60% of training budgets in frontline workers. The policy also stated that college graduates who did not find a job within two years of graduation would be eligible for subsidies to help them pay for social insurance, a prospect in continuation from a policy first introduced by the Ministry of Human Resources and Social Security in 2019. The youth unemployment rate hit 18.8% in August, sparking viral stories of overqualified graduates accepting low-level jobs including the viral story of a master's student who had taken a job as a high school janitor in the eastern city of Suzhou. Many netizens commented that the story reflected a growing trend of young people lowering their expectations.

INDIA WATCH

China Daily Editorial Criticises India's Strategic Balancing Between US and China: A recent editorial on China’s leading media agency China Daily took a critical view on the Indian Foreign Minister Subrahmanyam Jaishankar's recent remarks regarding the evolving Sino-Indian relations claiming it to be an attempt to justify India's "balancing act" between China and the US. The article suggested that India's closer alignment with Washington and participation in the Quad, which China perceives as a US-led effort to contain its rise, was an attempt to balance both sides under the guise of ‘Strategic Autonomy’. The article stated that while India benefits from economic engagement with China, its dual membership in both the Quad and organisations like BRICS and the Shanghai Cooperation Organization (SCO) is seen as opportunistic. The article on China Daily suggested that India’s approach lacks true strategic autonomy, claiming that New Delhi was trying to play both sides for its own gain. The media outlet argued that India's actions risks the prospect of undermining its credibility and status as a key regional player by being viewed as unreliable by both Washington and Beijing.

Prepared By

Anvita Plawat

Anvita is a post graduation student of International Relations at Jamia Millia Islamia with a keen interest in geopolitical and security studies. Her academic pursuits are complemented by her extensive research on the South China Sea. Beyond her academic and leadership roles, she actively engages in initiatives promoting sustainability, menstrual equity, and gender rights.