CiCM 4th -5th January 2025

NEWS IN CHINA

China's Foreign Exchange Administration Outlines Six Key Priorities for 2025: The State Administration of Foreign Exchange (SAFE) has outlined six priority areas for 2025, focusing on establishing a more convenient, open, and secure foreign exchange management system. Key initiatives include reforming foreign exchange facilitation by expanding cross-border financing for tech enterprises and optimizing bank foreign exchange business. SAFE aims to promote institutional opening-up, improving fund management for multinational companies and advancing foreign exchange market infrastructure. Efforts will also target market stability through enhanced monitoring, early warning systems, and countercyclical measures. To strengthen oversight, SAFE plans to enhance regulatory mechanisms, crack down on illegal activities, and leverage technology for effective supervision. Additionally, it will prioritize high-quality management of foreign exchange reserves, ensuring asset security and value preservation. Lastly, SAFE will modernize its framework with revised regulations, improved statistics, and smart management systems to enhance services and governance.
China’s New Year Gala Showcases Science Achievements Amid US Tech War: China aired its first science-focused New Year gala, emphasizing innovation amidst ongoing tech tensions with the US. The CCTV program highlighted advancements in AI, quantum tech, EVs, and national projects like the FAST telescope and nuclear fusion. It featured top scientists and executives, including BYD founder Wang Chuanfu and lunar program chief Wu Weiren. President Xi Jinping's New Year address followed, praising breakthroughs in integrated circuits and EVs while committing to "high-quality development" and greater self-reliance in technology. Xi emphasized this during an October visit to Hefei, now a hub for biotech and semiconductors, stating, “Hi-tech development cannot be begged for.” The gala also aimed to inspire public interest in STEM, with only 13% of Chinese deemed scientifically literate in 2023, compared to 40% of Americans in 2019. While Beijing targets global tech leadership by 2035, citizens like student Zhang Tongyue and office clerk Wang Ningning praised the gala for showcasing China’s innovation trajectory, though some called for comparisons with global leaders to better gauge progress.
China Launches Initiative to Support Young Scientists: China has unveiled a new project to support 3,226 young doctoral candidates, aimed at fostering academic growth and innovation, the Chinese Association for Science and Technology (CAST) announced on 4th January. Targeting researchers under 30 in natural sciences, engineering, agriculture, and medicine, the two-year program (2025-2026) offers up to 40,000 yuan ($5,565) per candidate. Funding will support participation in academic conferences, publication of research, and overseas study exchanges. Participants will gain free membership in national academies, access to major conferences, and mentoring from established professionals. Additionally, they will serve as assistants at high-level events and academic journals, enhancing their exposure to cutting-edge research. CAST plans to expand the initiative to support 10,000 candidates annually by 2025, covering over 15% of doctoral graduates in related fields.
Fudan University Highlights East-West Research Amid Anti-Globalization Trends: Fudan University has launched the "Global History Series: Between East and West," addressing deglobalization and fostering understanding of East-West exchanges. Edited by historian Dong Shaoxin, the series reframes global history to challenge Western-dominated narratives and highlight China's role in world history. The first three volumes explore cross-cultural interactions: the life of Luo Wenzhao, China's first bishop, against European expansion; Jesuit letters documenting China in the late Ming and early Qing eras; and the global exchange of Chinese medicinal knowledge in the 18th-19th centuries. These works integrate Chinese history into global contexts, promoting a pluralistic view of history. Scholars, including Zhang Xiping of Beijing Foreign Studies University, advocate for multilingual research to transcend traditional, Western-centric approaches. Dong Shaoxin urges young historians to engage in global academic dialogue and challenge entrenched biases in historical research. The series emphasizes rigorous research using original multilingual documents and aims to inspire innovative perspectives on globalization and modernization. Additional volumes are underway, exploring topics like religious imagery, meteorology, and ideological exchange between China and the West. Fudan’s initiative highlights the importance of mutual understanding in advancing global history, countering isolationist trends, and promoting civilizational exchange.
US Media Links China’s Alleged 6th-Gen Fighter to Lockheed Stock Downgrade: Lockheed Martin, maker of the F-35 fighter jet, faced a stock downgrade by Deutsche Bank from “Buy” to “Hold,” with a price target cut from $611 to $523. The bank cited China’s combat aircraft modernization efforts, following unverified videos reportedly showing sixth-generation Chinese fighter jets. Analyst Scott Deuschle expressed concerns about long-term demand for the F-35 as advancements in Chinese aircraft could impact U.S. defense priorities. The F-35, which contributes 25% of Lockheed’s sales, may face reduced support as the U.S. evaluates its next-generation air dominance (NGAD) programs. Recent Chinese social media videos reveal two distinct aircraft designs, one resembling a "ginkgo leaf," allegedly undergoing test flights. Although unconfirmed by Chinese authorities, experts suggest these could be sixth-generation stealth fighters. China’s rapid progress contrasts with delays in the U.S. NGAD development, paused in mid-2024 over cost concerns. Military analyst Song Zhongping criticized Lockheed’s heavy focus on the F-35, noting China’s advancements with the J-20, J-35, and potentially next-generation aircraft. While speculative, these developments raise questions about the future landscape of military aviation and Lockheed’s position in the evolving market.

SOCIAL MEDIA CHATTER

Gas Station Oil Theft Sparks Concern Amid Tax Evasion Tactics: CCTV has recently revealed widespread oil theft and tax evasion tactics used by gas stations across China, where consumers are being short-changed during refueling. One common method, identified over a decade ago, involves running the oil gun idle, where fuel is dispensed without reaching the vehicle’s tank. More sophisticated schemes involve tampering with the oil meter and pump controls, adjusting the pump's parameters to display inflated fuel quantities. A recent example was uncovered in Hezhou City, Guangxi, where law enforcement set a specific parameter, revealing a 50% overcharge on fuel dispensed. In some cases, gas stations have turned to high-tech methods to bypass supervision. A troubling discovery at a Guigang gas station involved a "remote control program" installed on a computer to manipulate fuel readings. The software allowed for significant tax evasion, where 1.5 liters of fuel were stolen with every tank. The program, which could be modified at will, was sold to gas stations by a company in Shenzhen. Netizens expressed significant concern, drawing parallels between these deceptive practices in China and similar schemes reported abroad. While the methods may vary, the underlying objective remains consistent: exploiting consumers for financial gain. One particularly alarming account highlighted by a user detailed a case in Guigang, where authorities uncovered a sophisticated remote-control program that facilitated a staggering 75% tax evasion rate. This revelation has amplified public discontent, with many emphasizing the pervasive nature of such fraudulent activities and the urgent need for stricter oversight and accountability. The issue resonates globally, underscoring the widespread impact of consumer exploitation in the fuel industry.|

INDIA WATCH

Global Times Highlights India’s Need for Asian Industrial Cooperation to Bolster High-Tech Aspirations: Chinese news outlet Global Times has reported on India's challenges and opportunities in developing its high-tech sector amidst its collaboration with the US. As US National Security Advisor Jake Sullivan visits New Delhi to review the India-US Initiative on Critical and Emerging Technologies (iCET), the Chinese outlet comments that there is a need for India to embrace cooperation within the Asian industrial chain. The report argues that India’s aspirations for high-tech leadership require a robust foundation in basic manufacturing, which currently relies heavily on imports. For example, India imports over 60% of critical machine tool components, with significant dependencies on Chinese products, including electronics and telecom equipment. This suggests that partnerships within the Asian industrial chain, especially under frameworks like the Regional Comprehensive Economic Partnership (RCEP), could provide India with essential resources and expertise. The author remarks that such collaborations would support India's gradual upgrade from basic to advanced manufacturing, creating a sustainable path for its high-tech ambitions. While initiatives like iCET aim to deepen US-India technology ties, the Chinese report cautions against neglecting foundational industries.

Prepared By

Manushka Sharma

Manushka Sharma is a dedicated second year student currently pursuing a Bachelor of Arts in Chinese (Hons.) at Jawaharlal Nehru University (JNU). With a keen interest in international relations, particularly in the dynamics of India-China relations, Manushka brings a unique perspective to understanding cross-cultural connections and geopolitical issues. Alongside academic pursuits, Manushka aspires to make significant contributions to global affairs, leveraging linguistic skills and cultural insights to bridge gaps and foster dialogue. She can be reached at manushka82006@gmail.com.