CiCM 6th February 2025

NEWS IN CHINA

Chinese Premier Li Qiang Meets Pakistani President to Strengthen Ties: Chinese Premier Li Qiang met Pakistani President Asif Ali Zardari in Beijing, reaffirming the strong "ironclad" friendship between the two nations. Li emphasized China's commitment to implementing key agreements between their leaders, maintaining high-level exchanges, and deepening strategic cooperation. Discussions focused on aligning development strategies, advancing high-quality Belt and Road cooperation, and strengthening the China-Pakistan Economic Corridor. Key projects in transportation, energy, mining, and technology were highlighted as priorities for bilateral growth. Security cooperation was also emphasized, with China urging Pakistan to ensure the safety of Chinese personnel and investments. Zardari reiterated Pakistan’s dedication to fostering trade, investment, and infrastructure development, welcoming more Chinese enterprises and pledging full security for their operations.

China Responds to U.S. Policy Shifts on Trade and Packages: China's Ministry of Commerce urged the U.S. to optimize regulations and create a fair trade environment after the U.S. briefly suspended and then resumed accepting Chinese parcels on February 4. Spokesperson He Yongqian emphasized the resilience of cross-border e-commerce, noting its efficiency, cost-effectiveness, and growing role in global trade. He also criticized recent U.S. tariff hikes and tax adjustments, warning they would raise costs for American consumers. Additionally, China placed PVH Group and Illumina on its unreliable entity list for discriminatory actions against Chinese firms, pledging further measures if needed. China remains open to cooperation but will take necessary steps to defend its trade interests against unilateral U.S. policies.
Xi Jinping to Attend 9th Asian Winter Games Opening: Chinese President Xi Jinping will attend the opening ceremony of the 9th Asian Winter Games in Harbin, Heilongjiang Province, on the evening of February 7, where he will officially announce the games open. Ahead of the ceremony, Xi will host a welcome banquet for visiting foreign leaders, including Brunei’s Sultan Hassanal, Kyrgyz President Sadyr Japarov, Pakistan’s President Zardari, Thai Prime Minister Petunthan, and South Korean National Assembly Speaker Woo Won-sik. The event will be broadcast live by China Central Radio and Television, with Xinhuanet providing text and photo coverage. The games mark a significant international sports event for China, reinforcing diplomatic ties through sports diplomacy.
Qingpu District Launches "Eight Practical Things for Enterprises" to Optimize Business Environment: On February 6, Qingpu District unveiled its 2025 Business Environment Optimization Plan (8.0), streamlining processes and enhancing services for enterprises. The plan follows a "1+5+9" framework, focusing on regulatory improvements, cost reductions, and fostering a pro-business environment. A key initiative, the "Eight Practical Things for Enterprises," addresses major business concerns: financing for SMEs, hiring skilled workers, employee housing, talent settlement, commuting challenges, telecom services, renovation procedures, and schooling for employees' children. Deputy Mayor Sun Ting emphasized benchmarking against global standards and Shanghai's action plan to drive reforms. The district also aims to strengthen legal protections, cross-regional coordination, and administrative transparency, ensuring a more efficient and supportive business climate.
China Defends DeepSeek Amid Global Bans while its Stock Surges: China’s Foreign Ministry denied allegations of illegal data collection following South Korea’s ban on DeepSeek, which joins restrictions imposed by countries like the US, India, Japan, and Australia. Spokesperson Guo Jiakun emphasized that China legally protects data privacy and opposes politicizing economic and technological issues, vowing to safeguard Chinese enterprises’ interests. On February 5, DeepSeek concept stocks surged, with companies like Parallel Technology, Daily Interactive, and Turing hitting daily limits. The rise boosted ETFs in software, IT, and computer sectors, including Wan CSI Software Service ETF and E Fund CSI Software Service ETF. The DeepSeek Partner Index gained nearly 14%, with a total transaction amount of 31.17 billion yuan. Popular stocks among public funds included iFlytek, Inspur Information, and Sugon, with 179, 113, and 99 funds holding these respectively. Institutional investors, such as Wanjia Fund and China Asset Management, increased their holdings in iFlytek. Fund managers believe DeepSeek’s open-source nature and market applications will benefit AI-linked stocks, especially in sectors like finance, healthcare, and programming. While short-term enthusiasm is high, the focus will shift to companies with solid business breakthroughs.

SOCIAL MEDIA CHATTER

Teen Sells Mother’s $140K Jewellery for $8 to Buy Lip Studs: A teenage girl in Shanghai stole her mother’s jewellery worth one million yuan ($140,000) and unknowingly sold it for just 60 yuan ($8) to buy lip studs and earrings, causing an uproar on chinese social media. The girl, surnamed Li, took jade bracelets and gemstone pieces from her home, believing they were fake. The incident has ignited discussions on parenting, teenage rebellion, and financial awareness, with netizens debating whether parents should give children more pocket money or if this reflects deeper parenting failures. Police have since recovered the jewellery. She sold them at a jade recycling shop for a fraction of their value. Her mother, Wang, discovered the loss and immediately reported it to the police, who reviewed surveillance footage and coordinated with the market to recover the jewellery. When asked why she sold the items, Li explained that she wanted to buy a lip stud for 30 yuan, which came with a free pair of earrings for another 30 yuan. Some argued that wealthier parents should give their children pocket money to avoid such situations, while others criticized Li’s actions, emphasizing that stealing, regardless of the reason,was unacceptable. Many agreed that better communication between parents and teenagers is crucial to preventing such incidents.

INDIA WATCH

Chinese Media discusses the viability of India's Gains from US-China Trade Tensions: A recent op-ed on Global Times casted doubts on India's ability to benefit from escalating US-China trade tensions, despite Indian reports suggesting a potential opportunity. The article stated that even though India is positioning itself as an attractive destination for foreign investment by revising its Bilateral Investment Treaty, its developing infrastructure, relatively low manufacturing capacity, and supply chain gaps make it unlikely to replace China in global trade. The article also pointed out that despite US tariff hikes, American companies continue to rely on China as a key trade partner and production base, limiting India’s ability to attract large-scale investment shifts. The author of the article noted that although India has advanced in manufacturing, it remains behind China and other East Asian economies in terms of industrial production and logistics. Additionally, the article warned that shaping economic policies primarily through a geopolitical perspective could result in ineffective strategies. It concluded by emphasizing that collaboration between India and China would be mutually advantageous and that integrating more closely with the regional industrial network,with China playing a central role would support India's economic growth endeavours.

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.