CiCM 6th March 2024

NEWS IN CHINA

China Sets 3% Deficit-to-GDP Ratio for 2024 to Ensure Fiscal Sustainability: China has announced its decision to cap the deficit-to-GDP ratio at 3% for the year 2024, a move aimed at maintaining fiscal sustainability and addressing potential future challenges. The "red line" of a 3% fiscal deficit ratio serves as an indicator of a government's fiscal policy strength and potential fiscal risks. Huang Shouhong, the head of the government work report drafting team and Director of the State Council Research Office, emphasized that while the 3% ratio serves as a benchmark, many countries have exceeded this threshold when necessary. China's deficit-to-GDP ratio has generally remained under 3% in recent years, except for 2020 and 2021. In 2023, the ratio was initially set at 3% but was later raised to 3.8% due to the issuance of additional special treasury bonds. The planned fiscal deficit rate of 3% for 2024 is expected to result in a government deficit of 4.06 trillion yuan, marking a 180 billion yuan increase from 2023.
1st Volume of “Xi Jinping: The Governance of China” published in Bulgarian: The Bulgarian version of the first volume of "Xi Jinping: The Governance of China" was officially released on March 4, coinciding with the 75th anniversary of establishment of diplomatic relations between China and Bulgaria. This publication is a collaborative effort between the Propaganda Department of the Central Committee of the Communist Party of China, the Central Party History and Documentation Research Institute, and China International Publishing Group. The availability of the Bulgarian edition is an attempt to enhance accessibility and facilitate cross-cultural dialogue in promoting bilateral relations and exporting China's governance experiences with the world.
China Breaks Investment Records in Water Management Sector: China's Minister of Water Resources Li Guoying has revealed that water resources management investment has soared to nearly 1.2 trillion yuan ($166.7 billion) in 2023. This milestone surge, amounting to a 10.1 percent increase year-on-year, Has seen flood control, water supply, irrigation, and ecological conservation emerge as top priorities with 41,104 projects being completed in these domains. Notably, 13,083 projects targeted the basins of major rivers like the Yangtze and Yellow, allocating 328.2 billion yuan to bolster flood control systems.8,039 projects, with a total investment of 220.4 billion yuan, aimed to revitalize ecological conservation along these river basins with restoration of river vitality being the goal.
Female Police officers receive Praise: The Ministry of Public Security and the All-China Women's Federation have decided to honor the outstanding achievements of public security agencies, female police officers, and supportive police wives on the occasion of International Women's Day. The commendation will include 100 female police officers with exceptional accomplishments, 100 commendable police wives, and 99 police-loving mothers from public security agencies nationwide. They have been recognized for their significant contributions and embodying the spirit of the new era through their diligent work. The commendation also acknowledges the support and encouragement provided by police wives and mothers, who stand with the police shouldering heavy responsibilities and upholding traditional virtues while promoting ‘Chinese-style’ modernization. Furthermore, it urges family members of public security officers to continue supporting and understanding the demanding nature of their work, thereby serving as a strong backing for the police force.
China-Thailand Cooperation in Clean Energy Showcased by new Hydro-Floating Solar Projects: A collaboration between Chinese and Thai companies has resulted in the successful commercial operation of a hydro-floating solar project at the Ubolratana Dam in Khon Kaen, Thailand. It integrates floating solar panels, clean hydropower, high-efficiency energy storage systems, and smart energy management systems. The project was completed ahead of schedule. Jiraporn Sirikum, deputy governor of the Electricity Generating Authority of Thailand (EGAT), praised the project for its potential to support the local economy and society through the promotion of clean energy. Liu Hongmei, Chinese Consul General in Khon Kaen, expressed optimism about the project's positive impact on the well-being of Northeast Thailand's populace, heralding it as a noteworthy achievement in Chinese enterprise investment in the region. EGAT plans to replicate such projects across Thailand to further propagate clean energy.
China Completes Construction of First Smart EV Charging and Battery-Swapping Zone: China has launched its first smart EV charging and battery-swapping zone, spanning 500 sq km across three cities in Jiangsu province. This zone aims to serve over 500,000 electric vehicle drivers and significantly reduce charging wait times. It boasts 1,300 charging piles and will introduce battery swapping stations, allowing drivers to switch batteries in just 80 seconds. Smart algorithms will help drivers find the most efficient and cost-effective charging options. This model is expected to cut average monthly queuing times by half and is planned to be implemented in neighboring areas, promoting the NEV industry's growth. The country's NEV charging infrastructure saw a 65% increase in 2023, reaching nearly 8.6 million facilities. The nation broadened its NEV charging facilities in 2023 which served around 20.41 million NEVs in 2023 and have since expanded by 65% culminating in an approximate total of 8.6 million charging facilities by the year's end, as reported by China's National Energy Administration.
China-U.S. Tourism Symposium Aims to Boost Tourism: The China-U.S Tourism Symposium, held in Washington, was a resounding success and saw the participation of key figures from both countries, including Chargé d'affaires Jing Quan of the Chinese Embassy in the United States and Gao Zheng, who presented China's views on promoting tourism cooperation. Topics discussed included the challenges affecting the exchange of visits between Chinese and American tourists. The aim was to expedite the return of two-way tourism between China and the United States to pre-epidemic levels. China has previously taken steps to simplify visa applications for foreigners and facilitate their payments in China. Efforts are being made to increase direct flights between the two countries to 100 per week by the end of March.

SOCIAL MEDIA CHATTER IN CHINA

Heartwarming Response to shop owner’s wedding closure notice: In Hangzhou, China, Zhang Tianfeng and Zhang Yaping, both 24 and owners of a duck-head snack shop, planned to marry in their hometown. They closed their shop from November 10 to February 14 and were astonished when passers-by flooded their closure notice with heartfelt blessings. Messages of love and congratulations covered the notice, profoundly moving the couple. They discovered the messages through a photo shared by a neighboring shop owner on WeChat while in their hometown. Touched by the unexpected gesture, the couple returned to offer discounts of up to 70% and distributed 270 packs of wedding sweets to passers-by upon reopening. Their story resonated widely on social media, with many expressing appreciation for the genuine display of love.

INDIA WATCH

Both China and India are actively involved in fostering infrastructure development in Asia, yet their approaches and scale differ significantly. China’s approach, as seen in the case of Thailand, has been majorly influenced by large-scale investments through its BRI. India’s focus has been sustainable domestic development of these countries and on becoming a major player in the energy sector. China’s role goes beyond financing projects, by giving Chinese companies the advantage of executing these projects while India’s involvement has been majorly for extending credit lines to the countries in need, sharing technology and minimal intervention. Furthermore, as the world’s largest manufacturer of solar panels, wind turbines, and electric vehicle batteries, China supplies much of the equipment needed for these sustainability initiatives. This approach however raises debt concerns since many of these countries struggle to pay for large Chinese infrastructure projects and also raises environmental and social concerns for large-scale dam projects such as that in Pakistan, especially when dominated by foreign agents. India’s approach in this context is more sustainable. Delhi must look towards building stronger clean-energy focused collaboration channels with South-East Asia in the fields of solar power capacity, especially keeping in mind its own solar ambitions and goal of becoming a significant exporter of solar energy equipment by 2026. Given India’s recent production boom in the solar power, such collaborations have the potential to make it a major supplier of clean technologies in the future.

Prepared By

Alisha Mehra

Alisha is a 2nd year student pursuing Development Studies with a minor in International Relations at IIT, Madras. Her interdisciplinary course offers her a unique perspective on Public Policy and Global Polity issues. She is passionate about China Studies, Economics and Climate and loves to explore the interconnections between the them.