CiCM 20th October 2023

NEWS IN CHINA

China set to have highest nuclear capabilities by 2030 according to Pentagon: A new Pentagon report has raised alarm over China's nuclear build-up which is on track to possess over 1,000 operational nuclear warheads by 2030. The report highlights China's significant investments in expanding its land, sea, and air-based nuclear delivery platforms as a strategic move to deter potential interventions from the United States. China's expanding nuclear arsenal accentuates the country's efforts to enhance its deterrence capabilities, particularly concerning Taiwan and the Indo-Pacific region. It also highlights China's deployment of the DF-17 hypersonic missile system which has intensified concerns in the region of hypersonic technology and medium-range ballistic missile, intended initially for contingency scenarios. The development of such missiles poses a significant threat to foreign military bases and fleets in the Western Pacific. The report estimated that the expanded nuclear force would complete the PLA modernisation process by 2035, serving as an important milestone for the completion of Xi Jinping’s goal of China becoming a ‘world class’ military by 2049. Liu Pengyu, spokesperson of the Chinese Embassy in Washington, criticized the U.S. for hyping up the "China threat" theory and making baseless accusations. He also reasserted China’s policy of "no first use" of nuclear weapons.

China established 3.19 million 5G base stations boosting digital infrastructure: The recent data released by the Ministry of Industry and Information Technology (MIIT) reported China’s successful establishment of 3.19 million 5G base stations by the end of September. This rapid expansion of 5G infrastructure shows China’s progress in deploying electronic networks by possessing an impressive 42 percent of the world's standard essential patents related to 5G technology. Moreover, this comes as a pivotal step in propelling the nation's economy into the digital age by showing a steady growth in electronic technology manufacturing, exemplified by a 0.8 percent year-on-year increase in mobile phone production. The data identified this steady growth by the growing number of gigabit broadband users in China which reached 145 million by the end of September. The surge in gigabit broadband users along with substantial expansion in 5G networks emphasizes China's rapid advancement in enhancing high-speed internet connectivity, reshaping industries by digitalisation, and applying enhanced virtual reality experiences across various sectors.

China’s implements ‘Patriotic Education Drive’ across schools in Hong Kong: The Chinese Communist Party in a move to strengthen "patriotic education" in schools, universities, and religious establishments in Hong Kong, released a second draft of the "Patriotic Education Law" to the National People's Congress Standing Committee. Focusing on party's efforts to reinforce ideological unity, Hong Kong has been mandated to include "national security" education, and would likely to face further measures to enhance residents' understanding of the country's history, fostering patriotic sentiments to the land and the party. The establishment of an Institute of Xi Jinping Thought on Culture, likely within the Ministry of Culture and Tourism, was also indicated in the effort to implement the proposed law. The Patriotic Education Bill, underscores the country's leadership's concerns amidst mounting domestic challenges by the Hong Kong youth actively participating in protests and expressing dissent against the Party. Through this law, the Communist Party aims to assert control, fostering allegiance to President Xi Jinping and his ideology, as noted by Hung Chin-fu, a professor at National Cheng Kung University in Taiwan. The enforcement practices encompass more propaganda in educational and religious institutions, aligning with Xi's ‘Sinicization of Hong Kong.’

Ground-breaking development in cross-border digital RMB settlement: PetroChina International Corporation Limited successfully completed the first-ever international crude oil trade using cross-border e-CNY (digital renminbi) settlement on the Shanghai Petroleum and Natural Gas Exchange platform. In the report by Shanghai Securities, PetroChina procured one million barrels of crude oil by settling the payment through digital RMB. This landmark transaction aligns with China’s goal of advancing digital currencies in the global economic landscape for international trade and financial transactions. This steady internationalization of the RMB comes at a 35 percent increase in cross-border RMB settlements, totalling 10.16 trillion yuan ($1.39 trillion) in the first three quarters of the year according to data released by the People's Bank of China. In September, another yuan-settled RMB transaction between China National Offshore Oil Corp and France's Engie for liquefied natural gas (LNG) trade, demonstrated the growing acceptance of China’s currency in global payment settlements. Initiatives such as the use of cross-border RMB in trade and investment, is also predicted to grow with strategic collaborations with Argentina and Brazil, in an aim to expand the global influence of the Chinese currency.

China conducts the second round of inspections by the 20^th Central Committee: The second inspection round carried out by the 20th Central Committee of the Communist Party of China has been completed, covering 26 centrally managed enterprises and 5 functional departments. These inspections are part of the Party's efforts to maintain discipline, uphold Party principles, and ensure the proper functioning of Party organizations across various sectors The focus of these inspections is to promote the Party's self-revolution and to ensure that institutes adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. The inspection across the various departments are to be carried out until December 20, 2023 with 15 central inspections teams working to identify issues related to the party's organizational line in the new era. These engagements will help weed out corruption and compliancy within the party, for which China has been subsequently praised by the Ghada Waly, Executive Director of the UN Office on Drugs and Crime at the 20th anniversary of the UN Convention against Corruption (UNCAC). China's efforts to enhance its anti-corruption framework through monthly inspections help international conventions to see its dedication to promoting transparency, and integrity within the Party.

SOCIAL MEDIA CHATTER IN CHINA

China’s newly released ‘Belt and Road’ promotional video receives praise: In a promotional video by the official Weibo account of Liaoning Communist Youth League the ‘Flying Sky’ on Douyin amassed much talk for its promotion of the Silk Road. The video which showed beautiful visuals capturing the essence of the connectivity of the Silk Road has been promoted with the hashtag #silkroadspirit. People are celebrating the legacy of the Silk Road and the continuous progress of China by highlighting the Silk Road spirit as the most important source of strength for jointly building the Belt and Road Initiative. The video came after the keynote speech of Xi Jinping on the 3^rd Belt and Road Forum which reminded that the Silk Road's fame lies not in war and conquest but in goodwill, friendship, and mutual learning. Many netizens have shared their thoughts by commenting on the peace, cooperation, openness, and mutual benefit which remain at the heart of the silk road initiative. Featuring ancient legacy, one of the netizens commented for countries to join hands with China who following the footsteps of Zhang Qian is building a road of prosperity and strength together. Another netizen remarked on the Silk Road spirit as the guide for the future. With more than 150 countries and 30 international organizations signing the "Belt and Road" initiative, netizens remarked on its scope which has reached far beyond the Eurasian continent, to countries in Africa and Latin America.

INDIA WATCH

The emerging dynamics between India and China can emerge at a crossroads with China’s increasing nuclear capabilities indicating the potential for nuclear rivalry in Asia. India has increasingly viewed China as a nuclear threat due to its expanding nuclear strategy despite China's stated ‘no first use’ of a nuclear weapon policy in the time of war. However, China’s significant military build-up presents elements akin to a Cold War-type nuclear rivalry, characterized by sustained tension, border threats, and arms race. Even though India has made significant results in developing long-range missiles like the Agni V, China has nevertheless emerged superior in possessing nuclear weapons which have joint-capability strike systems as well as the operational nuclear warheads capacity to cause significant damage to its adversaries. Thus, India must seek to strengthen the equilibrium level with China in terms of its defence and nuclear capabilities. A stratagem should be adopted to bolster defence ties with countries, particularly the United States and Russia to develop collaborative efforts in technology sharing, joint research and development. By establishing secure nuclear treaties with countries well established in the military domain, India can immensely expand the development of joint-capability missiles and nuclear warheads to gain legitimacy for its leadership in the geopolitical sphere as a nuclear power nation. By enhancing its security autonomy, India can play an important role in furthering the stability of the Indo-Pacific region by having a strong response to regional security implications of China's nuclear build-up. With challenges simmering on the border front between India and China, the response should not end up in both countries dealing with deadly consequences of a nuclear war fallout.

Prepared By

Taru Ahluwalia

Taru Ahluwalia completed her Post-Graduation in East Asian Studies from the University of Delhi and her Under-Graduation in English from Lady Shri Ram College for Women. She aims to decode the enigma that is East Asia and examine its geopolitical re-positioning in today’s world. She holds a diploma in Korean Language and aspires to learn Chinese one day.