CiCM 4th March 2025

NEWS IN CHINA

Government Work Report Out; GDP growth target at 5 per cent: In the opening session of the NPC, Premier Li Qiang delivered the government’s report, announcing a target GDP growth of 5% for China. This growth target aligns with China’s long-term goals and is designed to deliver results even amid challenging circumstances. According to the report, China plans to implement a proactive fiscal policy alongside a loose monetary policy. The government will issue 1.3 trillion yuan in ultra-long-term special treasury bonds, with additional bonds released to support state-owned banks. The consumer price index is projected to reach a record low of 2% since 2005. According to Tian Xuan, head of the National Institute of Financial Research, the 5% growth target is a more accurate reflection of the policies to date and ensures consistency. UBS predicts that these measures will boost household consumption rates. With a 5% GDP growth target in place, the government emphasizes job creation and improving working conditions as top priorities. The government’s work report forecasts the stabilization of the job market and anticipates that over 12.56 million people will secure employment in urban areas. To support businesses, especially in emerging sectors, the government plans significant cuts in taxes and fees for companies, including small and medium scale enterprises. Regarding emerging technologies and future industries, the report outlines plans for demonstration projects in areas such as biomanufacturing, quantum technology, and 6G, with increased funding allocated to these sectors. The report also touched on concerns regarding Taiwan’s reunification, emphasizing the importance of the well-being of the Chinese people on both sides of the Taiwan Strait. The government committed to promoting cross-cultural and institutional policies to further strengthen ties.
China ready for political dialogue with the U.S. on Trade Tariff Issues: In the third session of the 14th National People’s Congress (NPC), spokesperson Lou Qinjian expressed China’s willingness to resolve issues with the United States on trade tariff through political dialogue based on mutual respect, equality, reciprocity and mutual benefit. The statement comes following China's decision to impose an additional 10-15% tariff on the U.S products starting March 10. Lou further criticized U.S. actions for violating the World Trade Organisation rules, disrupting global supply chain stability, and undermining established international order. He emphasized that China will not tolerate any threats or coercion from the U.S. and is committed to defending its sovereignty and developmental interests. Another spokesperson, Lin Jian, pointed out that there are no true winners in trade wars, asserting that the U.S.'s efforts to politicize and weaponize economic issues, along with its imposition of heavy tariffs on Chinese imports, threaten normal trade, investment, and economic cooperation. He further stated that such actions would ultimately harm both the trade relationship and the U.S. economy.

AI should not be limited to the rich and wealthy countries, says NPC Spokesperson: As the annual session of the National People’s Congress progresses, Lou Qinjian, stated that technological advancement of Artificial Intelligence and its regulation have been points of discussion showcasing China’s enthusiasm towards technology and innovation. Responding to the question raised by the media on the relevance of AI in the stabilisation of the economy, he answered that, through applications such as Deepseek, China has been able to represent the country’s ‘innovation and inclusivity’ as the country believes in sharing their ‘wisdom to the world’. China highlighted the importance of technology sharing and the openness of technology as the previous success stories of Android and ARM were the outcomes of openness and collaboration. China has stated that it has been able to develop AI chatbots that are more affordable than the US developed. According to the spokesperson, AI should not be just limited to the rich and wealthy countries but other countries should also have access to the same and China’s technological innovation supports this sharing and cooperation. Lou further remarked that “China will help bridge the technological divide and prevent technological innovation from becoming the game for the rich countries and the wealthy”.

China reaffirmed its stance on narcotics control: According to the State Council on Information office, China has concreted its position on the control of narcotics stating that it has stringent control over the fentanyl-type substances. China released a White Paper pertaining to fentanyl-related substances, emphasizing that China has been actively and rigorously controlling the flow of fentanyl substances and holding a clutch on smuggling and trafficking. These stringent controls include all precursor chemicals that are required to produce these substances. Country has also included all fentanyl related substances in the ‘List of Controlled Narcotic Drugs’. Around 9.766 kg of fentanyl related medications were exported to regions including Latin America and Europe, but North America was an exception in 2023. China argues that it has propagated the idea of international cooperation, assistance and necessary regulations with the world, including the US. The Spokesperson stated that China has done everything to control the drugs and urged the US to stop blaming China. China uses advanced technologies in the detection of fentanyl substances including radio frequency identification tags and AI. According to the Ministry of Public Security, it has organised campaigns against crimes induced by substances for three consecutive years from 2019, presenting China’s consistency in the regulation of the drug.
China to fund long term R&D projects through banking and insurance sectors: Li Yunze, Head of the National Financial Regulatory Administration, announced that China plans to allocate funds for research and development, high-tech sectors, and startups through the banking and insurance industries. To implement this initiative, the scope of the equity investment pilot program for financial asset management companies has been expanded beyond the current 18 cities, with plans to extend it nationwide. More financial institutions are also expected to participate in the program. The government has approved 60 billion yuan for the initiative, with an additional investment of over 100 billion yuan from other sources. Furthermore, adjustments to mergers and acquisitions will be made in collaboration with the project, specifically targeting tech companies. Li also mentioned that the China Intellectual Property Administration aims to build a comprehensive intellectual property financial ecosystem. A pilot program will be launched in innovation hubs to address challenges in intellectual property registration and validation, transforming the IP sector. Last year, China saw stable financial growth, particularly in financial reforms and key industries, and aims to continue expanding, with the banking sector’s capital adequacy ratio rising to 16%. Loan rates for key sectors like science, technology, and advanced manufacturing have also increased.

SOCIAL MEDIA CHATTER

Che Xingde’s return to the drama sparks controversy: The recent storyline of “难哄车兴德上线” (The Troublesome Che Xingde Goes Online) has ignited intense debates among viewers, with hashtags trending across social media. . The character of Che Xingde, known for his past questionable actions, has once again taken center stage, drawing significant controversy. His return to the life of the female lead, Wen Yifan, has resurfaced painful memories, triggering widespread criticism from the audience. Fans have expressed their frustration and disappointment, with many calling for the character’s removal from the show. Opinions are split online regarding the purpose of Xingde’s reappearance. Some argue that the writers and producers are aiming to shed light on societal toxicity, while others believe that such portrayals only reinforce negative stereotypes. This debate has sparked broader conversations about the over-glorification of toxic characters and the shifting attitudes in Chinese society toward such portrayals. The online discourse not only highlights the audience's emotional investment in the show but also underscores the powerful influence a TV drama can have on its viewers.

INDIA WATCH

Article in South China Morning Post Explores the Upcoming Taliban Visit to India: An article in SCMP discusses the upcoming visit of Taliban officials to India, with India seeking to re-establish ties with the group. The author describes this move as a strategic response to China’s growing influence in the region but also highlights the risks of legitimizing the Taliban’s rule in Afghanistan. The article cited that New Delhi will not recognize Taliban officials as diplomats, nor will they be allowed to display their flags at the embassy. Vinay Kaura, an expert on Afghanistan and Pakistan, pointed out that India has been providing grassroots support, such as education and humanitarian aid, which has created a positive image among the Afghan population—contrasting with China’s top-down approach. Kaura also mentioned that expanding India's influence in Afghanistan could serve as a counterbalance to Pakistan's political power. Anup Shekar Chakraborty, an associate professor at North-Eastern Hill University, emphasized that India’s approach is guided by the principle that business must continue regardless of who holds power in Afghanistan. Sushant Sareen, Senior Fellow at the Observer Research Foundation, highlighted that India’s assistance is substantial, ongoing, and truly impacts the lives of Afghan people, while Chinese aid largely remains theoretical and on paper.

Prepared By

Lakshmi Priya Vijayan

Lakshmi Priya Vijayan holds a master’s degree in Geopolitics and International Relations from the Department of Geopolitics and International Relations, Manipal Academy of Higher Education (MAHE), Manipal, Karnataka, India. Her areas of interest include geopolitics of Southeast Asia, biosecurity, political economy, transnational organised crimes and public diplomacy. She has previously interned at Manohar Parrikar Institute for Defence Studies and Analyses. Her writings have been published in reputed institutions such as MP-IDSA, CENJOWS, EJSS and more.