CiCM 10th July 2024

NEWS IN CHINA

China's Economic Indicators for June 2024: CPI Shows Modest Inflation Amid Price Fluctuations: : In June, China's consumer prices experienced a slight increase, continuing a trend of modest inflation. The consumer price index (CPI), a key measure of inflation, rose by 0.2% compared to the previous year, slightly down from May's 0.3% rise. Food prices dropped by 2.1%, with fresh vegetables notably decreasing by 7.3%, and pork prices surged by 18.1%. Non-food items saw a steady 0.8% increase, the same as in May. Energy prices rose by 3.1%, slightly lower than May's 3.4% increase. Prices for gas-powered vehicles fell by 6%, while new energy vehicles saw a decrease of 7.4%. Month-on-month, the CPI fell by 0.2% in June, more than the 0.1% decline in May. The core CPI, which excludes food and energy prices and provides a clearer picture of the economy's supply-demand balance, remained steady at 0.6% year-on-year. China's producer price index (PPI), reflecting factory-gate prices, dropped by 0.8% year-on-year in June, an improvement from May's 1.4% decline. On a monthly basis, the PPI decreased by 0.2%, following a 0.2% rise in May. This data indicates a stable market with modest inflation and some ongoing challenges in industrial demand.
Upcoming Third Plenary Session of the 20th CPC Central Committee to Focus on Global Opening-Up: Reform and opening-up have been crucial for China's progress, serving as vital tools for the Communist Party and the people to advance and adapt. Since 1978, when the third plenary session of the 11th CPC Central Committee initiated these policies, China has faced and overcome numerous challenges, significantly enhancing its national strength. The third plenary session of the 18th CPC Central Committee in 2013 marked a new era of comprehensive reforms, leading to improvements in governance and the overall well-being of its citizens. As China faces new domestic and international challenges, it is essential to continue these reforms to build a strong socialist nation and achieve national rejuvenation. The upcoming Third Plenary Session of the 20th CPC Central Committee, set in Beijing from July 15-18, 2024 , is expected to focus on deepening economic reforms and opening-up further. This includes allowing market forces to better allocate resources, removing barriers for businesses, and fostering both state-owned and private enterprises. High-level opening-up is vital for China to navigate global uncertainties and maintain its economic growth. By promoting inclusive global trade and value chains, China can help other countries benefit from its development, laying the groundwork for its own modernization.
China Leads the World in Generative AI Adoption: A recent survey shows China is at the forefront of using generative AI (GenAI), surpassing other nations. Conducted by SAS and Coleman Parkes Research, the survey included 1,600 industry leaders worldwide. In China, 83% of respondents reported using GenAI, significantly higher than the global average of 54% and the U.S. figure of 65%. Despite high adoption rates, the U.S. leads in fully implementing GenAI technologies at 24%, compared to China’s 19%. The survey covered sectors like banking, healthcare, and retail. China's AI industry has seen remarkable progress in technology, product innovation, and practical applications. A UN report highlighted that China leads in GenAI patents, filing over 38,000 between 2014 and 2023, compared to the U.S.’s 6,276. With more than 4,500 AI companies, China's AI industry reached a value of approximately $79.5 billion in 2023. By 2026, China plans to set over 50 national and industry standards to ensure high-quality development in the AI sector.
China Accelerates Testing of Driverless Taxis: Chinese cities and companies are rapidly advancing the testing of driverless taxis, showcasing significant progress in autonomous driving technology and regulations. Beijing recently introduced a draft regulation to support the development of autonomous vehicles, outlining application scenarios, traffic violation handling, and accident responsibility. Pony.ai, a leading autonomous driving startup, highlighted new routes connecting key areas in Beijing, with more planned. The Beijing draft, open for public feedback, promotes the use of autonomous vehicles for public buses, ride-hailing, and rentals, focusing on advanced autonomy (L3 and above) while ensuring safety. Shanghai also issued its first demonstration permits for intelligent connected vehicles, covering 205 kilometers in Pudong, allowing four companies to prepare for official launches. China leads globally in autonomous driving, with extensive city coverage and high commercialization levels. Wu Shuocheng, an automotive industry analyst, credits this success to the integration of high-quality driverless cars, infrastructure, and regulatory policies, creating a safer and more efficient system. In 2023, semi-autonomous (L2) passenger cars in China reached a 47.3% penetration rate, exceeding 50% in early 2024.
Report Confirms Excellent Marine Ecology Around China's Huangyan Island: A recent report has found that the marine environment around Huangyan Island, also known as Huangyan Dao, in the South China Sea is in excellent condition. Both the seawater and marine sediment meet the highest quality standards. This assessment, conducted from May to June by Chinese researchers, included extensive on-site investigations and satellite remote sensing analysis. The study evaluated various aspects of the marine environment, such as seawater and sediment quality, marine life, and coral reefs. The findings showed low pollution levels, no cyanide in the seawater, abundant giant clams, and healthy coral reefs. This report comes amidst accusations from the Philippines claiming that Chinese fishermen were harming the coral reefs by illegally harvesting giant clams. Chinese experts argue that the report disproves these allegations and highlights China's effective management in protecting Huangyan Island's ecology. The comprehensive investigation underscores the positive impact of China's governance on the island’s ecological health, demonstrating a well-preserved marine environment.

SOCIAL MEDIA WATCH

Growing Trend- Pet Health Supplements Gain Popularity Among Chinese Youth: In China, a notable trend has emerged among young people who are increasingly purchasing health supplements for their pets. This includes products like fish oil for joint health, glucosamine, and coenzyme Q10 for heart benefits. According to a survey highlighted by CCTV Finance, nearly 76% of respondents, particularly those aged 18 to 35, are willing to spend on such supplements to enhance their pets' longevity and well-being. Pet owners, such as Tang Shiying, who spends about 400 yuan monthly on supplements for her two small dogs, stress the importance of these products, especially for larger breeds. However, experts, who cares for senior dogs, advise caution. They suggest prioritizing regular checkups over unnecessary supplements, considering the strain these products may place on older pets' organs like the liver and kidneys. This trend reflects a growing awareness and investment in pet health among younger demographics in China, aiming to provide their furry companions with the best possible care. Social media users point out the shift in pet care habits which highlights a broader societal change where pets are increasingly viewed as integral family members, deserving of the same health considerations as humans. It also shows the rising disposable income and changing consumption patterns among Chinese youth, who are more inclined to spend on quality products and services for their pets.

INDIA WATCH

Six Officials Suspended After Deadly Stampede in Uttar Pradesh: China’s news agency, People’s Daily reported that Indian authorities in Uttar Pradesh have suspended six officials, including police and district personnel, following a stampede that killed 121 people. The suspension came after a Special Investigation Team (SIT) found lapses in how the local administration managed an event hosted by a Hindu preacher in Hathras district. The SIT report criticized the officials for negligence and inadequate arrangements, noting they didn't take the event seriously enough. The author states that overcrowding was flagged as a major issue, with organizers expecting 80,000 attendees but a staggering 250,000 showed up. Nine individuals, including the main organizer Devprakash Madhukar, have been arrested. The investigation involved statements from 125 people and examined various media, such as video footage, photographs and news reports. The organizers allegedly understated attendance figures to avoid crowd control measures.

Prepared By

Kriti Rai

Kriti is an undergraduate student at FLAME University pursuing Data Science and Economics. She is proficient in C++, Python, MySQL, and data visualisation tools such as Tableau. Her areas of interest lie in building predictive models and utilising machine learning to enhance decision-making and tackle real-world challenges.