CiCM 20th June 2023

NEWS IN CHINA

In a bid to revive the slowing economy, China cut its two vital benchmarks lending rates to preserve the financial condition of the cooling sector, poor data, and the high unemployment rate of the youth. China’s policymakers have brought into effect the 10 bases point deduction in the one-year loan prime rate, bringing it down to 3.55%, while the five-year LPR has decreased to 4.20% by the same margin. This reduction is the first such reduction in 10 months post-coronavirus recovery of the economy. Analysts have shown disappointment in the rate cuts that were expected to be less. Last week People’s Bank of China (PBOC) lowered short- and medium-term policy rates. These moves have been made to reduce any risks in the property sector and ensure support for the new economy. Additional changes are to be made in the upcoming days as the LPR cut is expected by the year-end, with the measures to safeguard the property and manage the consumption support. It is expected that these will help out the economy to preserve the old economy but still won’t boost the financial growth as the May data showcases that the recovery was unstable. The analysts state that China will roll out the policies slowly in order to implement them efficiently for economic safety.
China-Pakistan signed a $4.8 billion nuclear project in Punjab province amid economic instability in Pakistan. The project is to build a 1,200-megawatt nuclear power plant called Chashma V project in Chashma in the Mianwali. Pakistan’s Prime Minister Shehbaz Sharif has expressed his gratitude by emphasizing China’s and their companies’ faith and trust in investments and collaboration with Pakistan. China is offering a US$100 million discount for this latest project as Pakistan is facing financial challenges. This project was planned to start a couple of years ago but has now resumed action. China has also given US$104.53 million to start the project, Sharif expressed.
Ministry of Natural Resources banned practices that make the land arable which include behaviours like filling aquaculture ponds and forcibly uprooting trees. This ban was found in a released notice on June 14, 2023. The ban is evident due to the harvesting season in order to preserve the fish ponds and fruit trees. This move focuses on the prohibition of the local natural resources departments using standardized approaches without the consideration of the quality of the land, this comes amid the national campaign of protecting arable land. Conditions of agricultural production and the environment should be prioritized while developing agricultural land on steep slopes and other malpractices have been prohibited that negatively affect the land. The Notice strictly prohibits agriculture in lands with severe pollution, soil erosion, fragile ecology, or any condition that hampers the restoration of the land. It also forbids the cultivation of arable land in steep slopes above 25 degrees and 15 degrees in important water sources. In addition, it also stated that the land irrigated by the groundwater should not be subjected to any water logging projects. Construction projects and the practices of supplementing any mountain area with arable land are banned as well. Any illegal occupation or damage to the environment and the arable land comes under this campaign which also strictly opposes new urban construction. Between 2009 and 2019 China is understood to have lost 7.5 million hectares of arable land, the National land survey specified. The Chinese government aims to retain 120 million hectares of land to ensure food safety.
China Aerospace Science and Technology Corp has stated that the Long March 6 rocket carrier has been used to launch the experimental satellite into space. Shiyan 25 satellite rocket blasted off at 11:18 am at the Taiyuan Satellite Launch Center in Shanxi province revealed by the company in the news. The aim of this launch is to find new technologies for further Earth Observations. Standing tall at 29.3 meters, the Long March 6 is constructed and manufactured by the Shanghai Academy of Spaceflight Technology, which is a CASC subsidiary. Its 1 metric ton payloads into a sun-synchronous orbit situated 700 kilometers above the Earth's surface. China’s advancement in space could lead to new findings and developments in the space area.
Suizhou's shiitake cultivation industry has given a boost to the economy of China's Hubei Province, benefiting more than 300,000 citizens. This industry has gone through positive advancements and new technologies like light control systems, automatic water spray, and ventilation. With the technological developments as stated by Huang He, 5G-based intelligent platforms are used outside the greenhouse to easily control the temperature and humidity which is very beneficial for the growing environment of the mushrooms. With tools like automatic irrigation systems that can be used for water and fertilizer integration with just a touch of the screen, it has made it easier for people to grow mushrooms that have better quality and better taste. It has resulted in a rise in the income of the farmers with some earning over 2,000 yuan per month and making shiitake cultivation a pillar in Suizhou that is driving their local industry. The products are reaching worldwide, as the city has become a prominent base for exporting the Shiitake all around the regions and the globe. Shuizhou shiitake was estimated to be of the valued of nearly 10.68 billion yuan in 2022 and it is expected to grow $1.2 billion by 2025.

CHINA SOCIAL MEDIA CHATTER

China Tibet Tourism and Culture Expo trends on social media: Visitors gathered at the 5^th China Tibet Tourism and Culture Expo showcasing the cultural heritage and history of southwest China's Tibet Autonomous Region. This exhibition demonstrates the cultural heritage items and also held 151 workshops for these intangible and valuable cultural items. Tibet has three items on UNESCO’s Representative List of the Intangible Cultural Heritage of Humanity list. Four state-level demonstration bases have been created with 70 cultural heritage sites and 603 cultural heritage sites under the safety of the region and one world cultural heritage site, has been established by Tibet. Around 8,000 cultural ventures are expected to be in Tibet resulting in about 15 percent of the annual growth of the region with 7-billion-yuan output by the cultural industries.

INDIA WATCH

As Pakistan’s economy remains in a free fall, China has aided the country with the development of nuclear project facilities that could raise security concerns in India. India’s severed ties with China and Pakistan are well established and the bilateral cooperation between China and Pakistan is presumed to be a direct threat to India as both states are in close proximity and have had a history of conflicted border relations. This nuclear project and other collaborations are likely to strain the relations further than it has already been due to projects such as CPEC which New Delhi claims passes through Jammu and Kashmir and meddles with the sovereignty and territorial integrity of India. New Delhi’s doubts about the bilateral relationship also include the economic cooperation between the two countries along with China’s loan lending that has burdened various developing countries such as Sri Lanka with excessive debt. Although India seeks a peaceful relationship, it has remained suspicious of Chinese advances in and around its neighborhood. In a recent interview with Wallstreet Journal India’s Prime Minister Modi stated that “relations with Beijing will prosper only if it promotes peace in the border.” On 5 May 2023, Qin Gang, Chinese State Councilor and Foreign Minister stated that the relations between China and India are returning to a stable and healthy track. Recently India’s Foreign Minister S Jaishankar also stated that although China has been pushing forward the narrative of the relationship between the two nations being stabilized, on the other hand, China’s confusing take on the issue of border peace has been the sole reason for barriers in the relationship reaching a stable point. India’s priority is its safety, and Pakistan and China’s bilateral projects, especially the nuclear facility construction, could lead to more restraints and the possibility of stabilizing the relations between the two states could be hindered.

Prepared By

Akshita Pant

Akshita Pant is a post-graduate research scholar with a degree in Masters in International Relations from Amity University. Her expertise lies in the field of geopolitics, particularly focusing on China and East Asia. With a keen interest in India's foreign policy, national security, and culture, with a deep passion for understanding the complexities of international relations.