CiCM 15th July 2024

NEWS IN CHINA

China's Economy Grows 4.7% in Second Quarter of 2024: China's gross domestic product (GDP) expanded by 5% in the first half of 2024, reaching 61.68 trillion yuan ($8.65 trillion), according to data released by the National Bureau of Statistics (NBS). In the second quarter, GDP growth slowed slightly to 4.7% year-on-year, compared to 5.3% in the first quarter. The NBS attributed this to short-term factors such as extreme weather and floods, as well as challenges from insufficient domestic demand. The industrial sector led growth, expanding by 5.8% year-on-year, outpacing both the primary and service sectors. Consumption played a major role in driving growth, contributing 60.5% to the economic expansion. Despite facing a complex external environment and domestic structural adjustments, the NBS stated that China's economic fundamentals remain strong. The country's surveyed urban unemployment rate improved slightly, standing at 5.1% for the first half of the year. This performance underscores China's efforts to navigate global economic headwinds while pursuing sustainable development and maintaining its position as a key driver of global economic growth.
China Launches Nationwide Campaign to Safeguard Cyberspace for Minors During Summer: The Cyberspace Administration of China (CAC) has initiated a two-month nationwide campaign to safeguard children's online environment during the summer break. This effort targets various online platforms, including e-commerce sites, social media, and live-streaming services, aiming to combat inappropriate content and predatory behavior targeting minors. The campaign focuses on addressing violent, abusive, or sexually inappropriate content on video and live-streaming platforms, targeting the sale of inappropriate products to children on e-commerce sites, and cracking down on cyber manhunts and counterfeit apps that mimic popular children's applications. This initiative comes in response to growing concerns about online safety for minors, with recent reports showing that internet penetration among Chinese youth has reached 97.2%. The CAC emphasizes the need for enhanced control measures to prevent small companies from covertly marketing inappropriate products to children. Local cyberspace administrations are instructed to closely monitor new features and emerging issues related to minors in cyberspace, taking firm action against rule violations. This campaign underscores China's ongoing efforts to create a safer online environment for its younger population.
China Escalates WTO Dispute Over U.S. Electric Vehicle Subsidies: China has escalated its trade dispute with the United States by requesting the World Trade Organization (WTO) to establish an expert panel regarding subsidies for new energy vehicles (NEVs) under the U.S. Inflation Reduction Act (IRA). This move follows unsuccessful consultations between the two nations since China's initial complaint in March 2024. The Chinese Commerce Ministry argues that the IRA's subsidies, which favor vehicles made in North America, are discriminatory and protectionist, violating WTO rules. China contends that these measures artificially create trade barriers and increase the cost of global green energy transition. The dispute centers on the IRA's $369 billion climate and energy provisions, including tax credits for electric cars manufactured in North America. China, a major player in the global NEV market, views these subsidies as a threat to its industry and a hindrance to international climate change efforts. By advancing this case, China aims to uphold the WTO's authority and safeguard global efforts to address climate change. The country urges the U.S. to comply with WTO rules and cease policies that potentially undermine international cooperation on climate issues.
20th CPC Central Committee Convenes Third Plenary Session Amid Tight Security: The 20th Central Committee of the Communist Party of China (CPC) began its third plenary session in Beijing on Monday. General Secretary Xi Jinping delivered a work report and presented a draft decision on further deepening comprehensive reform and advancing Chinese modernization. This four-day high-level meeting, involving over 370 full and alternate members of the party's Central Committee, is expected to outline key reform steps and strategic directions for China's development. The focus is on deciding how to reach the country's interim industrial and technological goals by 2035 and addressing current economic challenges. Beijing has implemented stringent security measures, including banning low-altitude aircraft and increasing police presence around key infrastructure. The heightened security follows a call from China's security chief Chen Wenqing to safeguard national security and social stability during the plenum. The meeting comes as China faces significant domestic challenges, including a demographic crisis, sluggish growth, and mounting local government debts. Internationally, China is dealing with increased pressure from the West, as highlighted by the recent NATO summit. This crucial meeting is expected to shape China's economic and social development direction for the next decade, potentially impacting both domestic and international policies.
China's Rail Freight Volume and Turnover Hit Record Highs in June: China's rail freight sector achieved unprecedented performance in June 2024, setting new records in both volume and turnover. According to data from China State Railway Group Co., Ltd, the country's railways transported 332 million tonnes of cargo, a 6.1% year-on-year increase, while freight turnover reached 266.5 billion tonne-kilometers, up 5.3% from the previous year. This surge in performance spans various sectors, including container shipments, automobile transport, and cold-chain cargo. The China-Europe freight train service continues to expand its reach, now connecting hundreds of cities across Europe and Asia. This growth in cross-border transportation, exemplified by increased activity on routes like the China-Laos Railway, is bolstering international supply chains and contributing to China's foreign trade development. These achievements highlight the ongoing expansion and efficiency improvements in China's rail infrastructure. The robust performance underscores the continued strength of China's rail network and its increasing importance in both domestic and international trade. This growth is not only contributing to the stability of international supply chains but also boosting China's position in global trade networks.

SOCIAL MEDIA CHATTER

Restaurant Owner's Dish Name Test for Staff Sparks Online Debate: A restaurant owner in Xinxiang, Henan province, has sparked widespread discussion on Chinese social media after setting a dish name writing test for his young summer staff. The owner implemented the test after noticing frequent errors in order-taking due to staff's inability to write correct Chinese characters for dish names. The viral video, viewed over 4 million times on Douyin, shows four waiters, either university students or recent high school graduates, taking the test. It has attracted 30,000 comments, with many finding humor in the situation. Some joked about the owner's teaching aspirations, while others sympathized with students facing tests during their summer break. The incident has reignited debates about declining writing skills among China's youth in the digital age. Many commenters noted it's a common problem for young people to recognize characters but struggle to write them correctly. This aligns with a recent survey showing 40% of young people admitting difficulties in writing Chinese characters properly. The story has prompted discussions about education, generational differences, and the impact of technology on traditional skills.

INDIA WATCH

Fatal Road Accident in Gujarat Claims Six Lives: China's news agency Xinhua reported a tragic road accident in India's western state of Gujarat on Monday. According to local police, six people lost their lives and eight others were injured when a speeding truck collided with a stationary bus on the Ahmedabad-Vadodara Expressway near Anand town. The article states that the private bus had been parked by the roadside due to a tire burst. Passengers were standing beside the vehicle when the speeding truck rammed into them. Five individuals, including the bus driver, were killed instantly, while another succumbed to injuries in the hospital. The report mentions that the condition of the other injured people admitted to the local hospital was described as stable. As per the article, this incident highlights ongoing concerns about road safety in India, particularly on major highways. Such accidents often raise questions about traffic regulation enforcement, vehicle maintenance standards, and emergency response capabilities on India's busy expressways.

Prepared By

Vanshika Patel

Vanshika is a recent graduate from Ashoka University with a degree in Economics and a minor in Computer Science. Her interests lie in understanding the global economy and its impact on international communities, policy-making, and the social sector. She is particularly drawn to quantitative analysis and has a keen interest in international economics, aiming to contribute to data-driven decision-making in global economic contexts.