CiCM 13th November 2024

NEWS IN CHINA

Guangzhou Unveils Probity Rules for Public Officials: The Guangzhou city government recently published guidelines that define disciplinary boundaries for public officials' dining and entertainment-related conduct during official and business events. The guidelines state that if public officials miss meals for work-related reasons or are unable to eat due to special circumstances, they can have work meals at enterprises or have the enterprise help arrange meals, without going above the prescribed meal charges. Public officials who have been granted permission to take part in commercial events, such as forums and exchanges, hosted by businesses, chambers of commerce and trade groups have also been required to promptly pay their lodging costs and travel expenditures as per the regulations. Similarly, public officials are discouraged to engage in extravagant meals and observe diligence during enterprises' reception. The guidelines were implemented in the southern metropolis after an increasing number of public officials admitted that they were worried about violating Party discipline and regulations when having meals at the companies they visited and alleviate the burden for local business people of inviting public officials.

New measures Unveiled to Promote Growth of Inland Trade Centres: The General Administration of Customs (GAC) rolled out 15 policy measures to boost the New International Land-Sea Trade Corridor's expansion by lowering transportation expenses for importers and exporters, and encouraging the creation of inland business hubs. The operational base of this corridor is based in Chongqing which further connects to global ports via rail, sea and road routes. This project will help develop China’s strategic hinterland and support the implementation of rail-sea intermodal transportation solutions at major logistical hubs along the corridor. Additionally, it will support pilot programs for fruit inspections and quarantine at destinations, as well as international rail container imports of mineral products. According to Chen Zongwang, deputy director of the GAC's Department of General Operation, the administration will extend the domestic segment freight tax reduction policy for rail-sea intermodal transportation along the corridor to include China-Laos and China-Vietnam freight train services. This will guarantee that imported goods receive the same tax rate benefit in inland provinces as those cleared at sea and land ports. The project also aims to shift upstream and downstream industries to western regions of China. In 2024, total goods trade through the corridor reached 1.15 trillion yuan, an increase of 8.8 percent.

China’s 1-Gigawatt Offshore Photovoltaic Project Connects to State Grid: The State Power Investment Corporation announced that the first power units of China's first 1-gigawatt offshore photovoltaic project have been connected to the State Grid. The offshore photovoltaic project is situated in Dongying in Shandong Province. Financed by Guohua Energy Investment Co, a CHN Energy subsidiary, it is the biggest offshore solar project in China's open sea areas. With the implementation of 66-kv offshore and onshore long-distance transmission lines, it is the first project in China's photovoltaic industry to offer higher transmission capacity at a reduced cost. It is more cost-effective, has a larger capacity, and can supply more electricity per unit of time than conventional offshore photovoltaic transmission lines. The completed project is expected to generate 1.78 billion kilowatt-hours per year, which is enough to power about 2.67 million Chinese city dwellers for a year. According to a statement from CHN Energy, it will also reduce carbon dioxide emissions by 1.34 million tonnes and save 503,800 tonnes of standard coal.

China Introduces New Tax Policy to Boost Real Estate Sector: The Ministry of Finance, in collaboration with the State Tax Administration and the Ministry of Housing and Urban-Rural Development jointly introduced new tax policies to support the real estate sector. Effective from December 1, 2024. The policy includes reduced deed taxes for residential property purchases. As per the provisions, buyers of their first or second home, if under 140 square meters, will be taxed at 1 percent, while those over this size will incur a 1.5 percent tax. For second homes over 140 square meters, the deed tax will be 2 percent. This policy particularly benefits potential homebuyers in major cities like Beijing, Shanghai, Guangzhou, and Shenzhen, where rates were previously as high as 3 percent. Analysts expect these changes to stimulate demand for larger homes and second homes, supporting real estate market stability. Other adjustments include reducing the minimum prepayment rate for land appreciation tax by 0.5 percent, easing financial pressures on real estate companies and clarifying tax rules related to value-added and land appreciation taxes. These policies are part of a broader government initiative to bolster economic growth through counter-cyclical adjustments, domestic demand expansion, and real estate market revitalization. October data shows a 0.9 percent year-on-year increase in new home sales and an 8.9 percent growth in second-hand home sales.

Yuan Reference Rate Reached a 14-Month Low After Trump’s Victory: Yuan's midpoint rate drops to a 14-month low as Trump’s win plunges most currencies besides the US dollar. On November 13, the midpoint rate/fixing rate was set at 7.1991 per US dollar by the People's Bank of China, 0.64 percentage lower to previous day. The yuan has fallen sharply since Trump declared his victory in the US election. This comes as an attempt to maintain steady economic growth and avoid exchange rate overshooting. The People’s Bank of China faces challenges as there is a threat from Trump of a 60 percent tariff on all Chinese imports. These tariffs could cause further capital outflows from China. Experts suggest that China would need to have stronger domestic policies to stabilise the economy, and not rely on currency devaluation to deal with higher tariffs. Some experts have predicted that the yuan may further depreciate against the dollar at a rate of 7.3 by the end of 2024 and 7.6 at the end of 2025.

SOCIAL MEDIA CHATTER IN CHINA

Chinese Influencer Li Ziqi Announces Her Return After a 3-Year Hiatus: Renowned Chinese video influencer, Li Ziqi uploaded two videos in a row on November 12 after a 3-year hiatus. Her official account posted the videos across social media platforms including Douyin, Sina Weibo, and Chinese-language YouTube. Li Ziqi quickly became a trending topic on platforms like Guancha and Weibo. Her Douyin uploads alone received about 200,000 comments and over 2 million likes in just two hours. Li began sharing short videos on Sina Weibo in 2016, showcasing poetic depictions of rural life, traditional cooking, and cultural practices like making ink and clothing. By 2020, she set a Guinness World Record for the most subscribers on Chinese YouTube, with 11.4 million followers. In her recently uploaded videos, she showed how she transformed a woodshed into a woodland cloakroom and showcased her craft using Chinese lacquerware techniques, which are considered an intangible cultural heritage. Five and a half hours after its release, the lacquerware video received 100 million views on Sina Weibo and 1.6 million interactions. Netizens showered the comment section with encouraging remarks and emphasized how much they had missed her content. Several Weibo users encouraged her to continue her work. Another user on Guancha said that Li Ziqi’s videos are of high quality and are not just uploaded for the sake of it. Despite not posting since July 14, 2021, her fan base grew and she received requests for new videos while she was away.

INDIA WATCH

Opinion Column on India’s Green Steel Policy, Decarbonization Efforts and Challenges: An opinion column on the Chinese media site Guancha by Zhu Fangfang discusses India’s upcoming Green Steel Policy and its decarbonization efforts. Zhu reports that recently, Indian officials announced the formulation of a comprehensive Green Steel Policy framework and to explore the possibility of including green steel goods in the government's public procurement process, as well as encourage small steel companies to produce low carbon-emission steel. The author notes that this move is a big step towards India’s goal of achieving net zero emissions by 2070. He highlights that the target date is much later than that of other major carbon emitting countries, but argues that it would still be challenging for India to achieve this target. He further adds that the steel industry in India contributes 12 percent of its overall carbon emissions. Zhu mentions that Carbon capture, utilisation, and storage (CCUS) technology has emerged as the key to decarbonizing India's steel sector, which currently depends mostly on fossil fuels and CO2-intensive blast furnaces or basic oxygen furnace (BF/BOF) processes. He advocates that encouraging the development of high-performance special steels and lowering the production and export of low-value, high-carbon emission products will help make Indian products more competitive in the global market, particularly in the EU market which has strict low-carbon regulations. Zhu also highlights some socio-economic challenges such as the meagre investments in CCUS technology and the lack of cooperation between the private sector, the government, and civil society. The author cautions that India will also have to adapt to the socio-economic requirements after decarbonization as the increase in prices can affect the downstream industries and consumers directly.

Prepared By

Ananya Tandon

Ananya Tandon is a third-year undergraduate student at FLAME University, majoring in International Studies and minoring in Journalism. With a keen interest in political journalism, she gained valuable hands-on experience through her internship at NDTV, where she had the opportunity to explore the field. She is passionate about staying up-to-date on issues that shape the global community.