CiCM 19th July 2023

NEWS IN CHINA

China on Wednesday issued guidelines to boost the growth of the private economy. The guidelines, released by the Communist Party of China Central Committee and the State Council, are aimed at ensuring that enterprises of different ownership structures will operate in an arena of fair competition and be protected by the laws equally, in an effort to promote high-quality development of the private economy and aid China’s economic recovery. The 31 measures included in the guideline focus on improving business environment, enhancing policy support, and strengthening the legal guarantee for development of the private economy. The guideline also encourages the private sector firms to expand their overseas businesses while abiding by local laws and regulations as well as to actively participate in the joint construction of the Belt and Road Initiative.
More than 600 Chinese officials arrived in Xinjiang for their three-year assistance mission. The talent aid team, from about 120 central departments and organisations, is organised by the Organization Department of the Communist Party of China and the Ministry of Human Resources and Social Security. Their mission involves providing support to address specific needs in the sectors of education, medical care, politics and law, science and technology, and culture and tourism. Since its inception in 1997, the personnel assistance program has sent over 20,000 individuals to work in Xinjiang and contribute to its development, with the current team being the 11th batch. This follows the article published in the party's leading journal Quishi, in which it was made it clear that the Party and provincial government would use legal mechanisms to counter what they describe as US-led efforts to use the region to contain China.
Data on Foreign Direct Investment flows into China was released for the first half of 2023. According to data published by the Ministry of Commerce, FDI into the mainland dropped 2.7 percent year-on-year to 703.65 billion yuan ($97.55 billion). FDI in the country's high-tech industry grew 7.9 percent year-on-year during the six-month period, and during the same period, FDI into high-tech manufacturing soared to 28.8 percent on a yearly basis. The data released also revealed a growth in the investments made by developed countries in China. FDI from France, the United Kingdom, Japan and Germany jumped by 173.3, 135.3, 53 and 14.2 percent year-on-year, respectively.
Former U.S. Secretary of State Henry Kissinger met Chinese Foreign Minister Wang Yi. At the meeting, Wang reinforced China’s position on Taiwan, telling Kissinger independence was “incompatible with peace across the Taiwan Strait”. According to the ministry statement, he also articulated that China's development has a strong momentum and inevitable historical logic, and that it is impossible to try to transform China. Kissinger responded that China and the U.S. should treat each other as equals and maintain contact “no matter how difficult it is”. This comes after Kissinger’s meeting with the Chinese Defense Minister Li Shangfu as well as the announcement from the US State Department that Kissinger’s visit was not official. In the meantime, premier Li Qiang met the visiting US climate envoy, John Kerry. Li articulated the need for both sides to abide by the common but differentiated responsibilities in addressing climate change, while adding that developed countries should take the lead and developing countries should contribute only within their capacity. Kerry made clear the country's willingness to co-operate with China to address climate concerns while pushing for the success of the upcoming COP28.
The Ministry of Finance revealed that China's fiscal revenue grew by 13.3 percent in the first half of 2023 compared to a year ago. A Ministry of Finance official, Xue Xiaoqian, said that from January to June 2023, China's fiscal revenue was recorded at 11.92 trillion yuan ($1.65 trillion), while fiscal spending over the same period totalled 13.4 trillion yuan, registering an increase by 3.9 percent. In the first half of 2023, tax revenue is reported to have increased by 16.5 percent year-on-year, with domestic value-added tax (VAT) growing by 96 percent. Xue attributed the growth in fiscal revenue to the large-scale VAT deferral and refund program which was instituted in April 2022, the base effect of which has added to China’s post-Covid economic recovery.
President Xi Jinping exchanged congratulatory messages with the Cambodian King Norodom Sihamoni on the 65th anniversary of the establishment of diplomatic ties between the two countries. Xi articulated that China-Cambodia diplomatic ties have stood the test of time and adversity in the international arena, and has grown from strength to strength. He also made a reference to the "diamond hexagon" cooperation framework between the two countries and how it has been continuously deepened and enriched. Xi also said that extensive progress has been made in building the "Industrial Development Corridor" and the "Fish and Rice Corridor" and expressed his wish to work even closer for mutual development. King Sihamoni said the Cambodia-China mutually-beneficial cooperation will be strengthened, and the ironclad friendship will be passed down through the generations.

SOCIAL MEDIA CHATTER IN CHINA

Resting their way to self-care: A number of videos with the tag of "bed rotting" have gained more than 3.2 million views on TikTok. It shows the growing trend among the Gen Z to adopt a slower pace of life, with self-care happening in bed. Bed rotting" refers to lying in bed for extended periods of time. Netizens are coming up with creative ways to ‘bed rot’, from binge-watching TV, practising self-care by doing face masks and meditating in bed or even simply staring at the ceiling. Netizens claim that "bed rotting" can be a great way to restore both physical and mental health, whether they are recovering from a cold, or just a busy week.

INDIA WATCH

China and Cambodia are deepening their relations and agreeing to new commitments on the occasion of the 65th anniversary of the establishment of diplomatic ties between the two countries. These developments follow the Comprehensive Strategic Partnership that the two countries signed in 2013. From Chinese investment in infrastructure, ports etc, to assistance in the construction of the Sihanoukville economic zone in Cambodia, China is expanding its economic footprint in the country. Cambodia is also a major diplomatic partner to China and helps dampen the criticisms raised against Beijing by members of ASEAN.

India, in the meantime, engages with Cambodia through MoUs in the field of health, medicine, biodiversity conservation and reintroduction, education etc. India is also providing assistance through Quick Impact programs as well as projects like the Indian Technical and Economic Cooperation (ITEC) and Mekong Ganga Cooperation (MKC) for development in the country. However, trade remains inadequate between India and Cambodia. According to the 2021 report, the total trade between the two countries amounted to just US $311 million, while India’s trade with the neighbouring country of Vietnam came to billions in the same year. With India’s Act East vision and interest to seek increased ties and cooperation with ASEAN countries, establishing a better relationship with Cambodia is essential. The proposed bilateral FTA between the two nations can be pushed forward and the existing cultural ties between them can be revitalised, considering the extensive historical ties that the two countries share. A deepened relationship with Cambodia would also position India as a vital strategic partner in the Indo-Pacific region.

Prepared By

Maria Sony

Maria Sony is currently pursuing my master's in International Studies from Symbiosis International University. She completed her bachelor's in History honours from St. Stephen's College, New Delhi. She has a keen interest in Asian area studies and soft power projections. She also loves learning new languages and she is currently completing a course in Mandarin.