CiCM 2nd July 2024

NEWS IN CHINA

AI Seen as Key to Firms and Job Seekers: According to a senior executive of a human capital management giant ADP, job seekers and employers must be prepared to ride the wave of artificial intelligence application and development in China, which has enormous potential for market growth. China is a global leader in the development of AI and investment in the APAC area is expected to reach $49.2 billion by 2026, with a compound annual growth rate of 24.5% from 2021 to 2026, according to global market research company International Data Corp. By 2026, it is projected to spend over $26.4 billion on AI. Some see it as advantageous, while others fear job displacement. There is a specific gap about whether AI will augment or replace job tasks among younger generations and remote workers. Data scientists, machine learning engineers, and other occupations requiring strong technical skills and creative ability are among the new careers that are developing in the meantime. According to the World Economic Forum's Future of Jobs Report, by 2025, automation is expected to eliminate 85 million jobs, yet there will be an astounding creation of 97 million new roles that represent a change in the labour-sharing between humans, robots, and algorithms. This paradigm shift highlights the necessity for a substantial evolution of the workforce as opposed to a reduction in worker size.
China's Vice Premier Urges Enhancements in Foreign Investment Flow and Market Opening: He Lifeng, the vice premier of China, has urged measures to increase the flow and utilization of foreign investment. During a symposium on foreign investment work on 1st July, remarks were made. He called for further opening up the market and converting the nation's ultra-large market advantages into actual advantages in terms of drawing in investment. To support domestic and foreign enterprises equally in large-scale equipment upgrades, and to provide smooth channels for foreign enterprises the vice premier stated that efforts should be made to continue building a market-oriented, law-based, and international business environment. According to He, provinces that see a significant influx of foreign capital should improve their services, encourage the expeditious completion of foreign investment projects, fully utilize the potential of various open platforms, such as pilot free-trade zones, and investigate strategies for drawing in capital that are flexible enough to adjust to changing circumstances.
China Issues Regulations on Implementing Registered Capital Management System of Company Law: On 1st July, Chinese Premier Li Qiang signed a State Council edict that unveiled a set of guidelines for putting Company Law's registered capital management system into effect. The regulations provide clarification on pertinent procedures for the transitional period in which the time restriction for shareholders of existing firms to pay in their subscribed capital is adjusted. According to the guidelines, if the current time restriction from 1st July 2027, exceeds five years, the remaining period for the shareholders of businesses registered before June 30, 2024, must be changed to be less than five years. The regulations require prompt adjustment of company registrations following thorough investigations into anomalous activities in capital contributions and registered capital. Authorities will optimize processes for firms to modify capital subscription time limits and enhance oversight and inspection measures.
Chinese NEV Sales Surge Despite Global Challenges: Recent statistics from several Chinese new-energy vehicle (NEV) firms reveal robust growth in NEV sales in China throughout June and the first half of 2024. BYD reported sales of 1.61 million NEVs from January to June, marking a 28.46% year-over-year increase. In June alone, the company sold 341,658 NEVs, up from 253,046 in the same month last year. This growth can be attributed to the enhanced competitiveness of domestic NEVs, featuring longer battery life and lower costs, alongside improved charging and infrastructure capabilities. Despite escalating protectionist measures from the US and EU against China's electric vehicle industry, international collaborations with Chinese firms are strengthening amid China's ongoing advancements in the NEV sector. The Chinese Ministry of Commerce recently announced ongoing discussions and consultations with international counterparts, including EU working groups addressing anti-subsidy investigations into Chinese electric vehicles.
China is Accelerating the Creation of Standardised Systems for the AI Sector: A guideline to expedite the standardized system construction of the artificial intelligence (AI) industry has been unveiled by four Chinese government departments, including the Ministry of Industry and Information Technology (MIIT) and the National Development and Reform Commission. MIIT announced this on 2nd July. This guideline gives comprehensive information on the structure and architecture of the AI standards system, together with its applications, starting with the current stage of industry development. According to the government, over 1,000 businesses will be promoting and implementing the standardized system, and the usefulness of standard services for business innovation and development will be increasingly apparent. China intends to surpass 1 trillion yuan in its AI core sector by 2030, making it the world's leading hub for AI innovation, according to a development plan for next-generation AI. To address significant application and industrialization issues associated with AI, China has implemented policies in the areas of scientific and technology research and development, application promotion, and industrial growth.

SOCIAL MEDIA CHATTER

Man Arrested for Fabricating Anti-China Social Media Persona: Recently, a man was arrested for assuming a false identity on the social media platform X, pretending to be a female mainland student studying in Japan while using the name Avianca. Claiming residence in Kanagawa prefecture, he posted messages describing a fictitious return to China and employment as a civil servant in Shanxi province. These messages contained derogatory remarks towards Chinese people, sparking backlash on mainland social media. Online commenters questioned the authenticity of his claims, particularly how he could secure a government position after passing political evaluations. Authorities confirmed the individual responsible for the fabricated persona is in custody pending further investigation. Nationalist sentiments ran high, with many condemning him as a "nation-hater" and demanding severe punishment. The online reactions included calls for his continued detention and symbolic punishments, such as covering his body with flag stickers. The incident highlights the heightened sensitivities towards perceived anti-national sentiments online.

INDIA WATCH

NHRC Raises Concerns Over Alleged Discrimination Against Married Women at Foxconn India: According to a China Daily article, the National Human Rights Commission of India (NHRC) sent letters on Monday to the central government of India and state government of Tamil Nadu, addressing allegations of discrimination raised by Foxconn India, a major producer of Apple devices. The commission expressed concern over media reports alleging that married women were frequently denied employment at Foxconn India's iPhone assembly factory in Sriperumbudur, Tamil Nadu. The NHRC emphasized the government's role in ensuring that all businesses adhere to labor laws, regulations, and standards, particularly those related to equality, health, and dignity. Media sources revealed that from January 2023 to May 2024, the company reportedly contacted job seekers without specifying in its advertisements that only unmarried women were eligible for assembly positions. The NHRC's actions highlight ongoing concerns regarding potential discriminatory practices in employment policies within India's manufacturing sector.

Prepared By

Diksha Takale

Diksha is currently an undergraduate student at FLAME University, Pune. She is pursuing her degree in BA with a major in Literary and Cultural Studies and minor in Sociology. Writing is a part of her primary focus in building her career and one way to cater to that is by diversifying her academic reach in a field such as international relations. She is an avid reader and writes fiction in her leisure time.