CiCM 15th November 2024

NEWS IN CHINA

New military radar system unveiled: China Electronics Technology Group Corp, a supplier of defence and electronics is promoting a new radar system that the State-owned conglomerate remarked is the first of its kind. The YLC-2E radar has been developed by the CETC 14th Institute in Nanjiang and is on display at the ongoing 15th China International Aviation and Aerospace Exhibition. This is China’s newest hardware for countering stealth aircraft and the country’s largest and most renowned developer of military radar. A researcher at the institution revealed that YLC-2E is a new addition to our portfolio of anti-stealth radar and the first in the world based on the S-band mechanism. YLC-2E has a modular design, world-class hardware and intelligent algorithms resulting in excellent detection capability. The radar system incorporates high-power transmitter/receiver modules across an array spanning half a badminton court and has optimized power efficiency. These enable the radar to generate substantial energy for identifying stealth targets. Using sophisticated algorithms further enhances the system’s detection and tracking capabilities allowing it to operate under an enemy’s electronic jamming interference.
New tax incentives introduced to boost the residential property market: The Ministry of Finance, the State Administration of Taxation and the Ministry of Housing and Urban-Rural Development jointly announced preferential tax policies to support housing demand and ease financial strain among real estate developers. The deputy head of the Shanghai-based E-house China R&D Institute stated that the policies will be beneficial as they reduce taxes for homebuyers, homeowners and property developers at the same time. As per the notice, a 1% deed tax was extended to apartments sized at or below 140 square meters against the previous requirement of 90 sq km or below for both first and second homes nationwide. Yan stated that this change will lower home buying costs and help boost market activity. Further residential owners or dwellers will not be charged value-added taxes if sellers have kept them for two years or more. The president of the China Real Estate Data Academy stated that the November data to date has indicated that the policies introduced in the past few months have met their expectations. A researcher on residential policy in Guangdong province, Li Yujia stated that because the new taxation policies are in line with the trend of Chinese people’s housing requirements, a unified and lower taxation addresses both new supply and demand while streamlining home translation procedures to form a virtuous cycle.
China's legacy chip production slowed in October amid potential new US sanctions: China’s integrated circuits (IC) output grew at a slower pace signalling the weak demand in the domestic chip sector ahead of the expected tightening of US sanctions. As per China’s National Bureau of Statistics (NBS), a broad measure of semiconductor production, grew 11.8& year on year last month to reach 35.9 billion units. China’s total IC output in the first 10 months of the year increased 24.8% to 353 billion units. Yet, the domestic production of legacy chips has maintained momentum. Semiconductors are the second-fastest growing industry in China for 2024, outpaced by EVs. EV output has been recorded to have surged 36.3% this year producing 9.9 million vehicles. China Association of Automobile Manufacturers (CAAM) stated China’s annual EV production surpassed 10 million units this week. On the other hand, China’s output of industrial robots has increased 113.3% this year through October compared with the same period a year ago. In October, the output expanded 33.4% year on year, according to the Statistics Bureau.
Ministry predicts trade with Latin America and the Caribbean to surpass $500 billion this year: Chinese Foreign Minister spokesperson Lin Jian, stated that trade in goods between China and Latin America and the Caribbean hit 427.4 billion in the first three quarters of the year, an increase in 7.7% year on year, with the total estimate for the year expected to exceed 500 billion dollars. Lin stated the above during the ministry’s press conference. The region’s trade in goods with China has grown at a much faster rate than that with the world, underlying the highly complementary nature of the economies of both countries. Chile, even though it is the farthest from China, has the advantage of providing off-season supply which has become China’s second-largest source of fresh fruit imports and Chilean cherries which are star products in China. Jian stated that China’s new energy industrial chain offers a more affordable resolution for the region’s green transformation. Furthermore, China has five trade partners in the region and has signed an early harvest arrangement of a free trade agreement with Honduras and they have concluded substantial negotiations to upgrade the free trade agreement with Peru. The huge market and bright prospects of the two countries have led to a surge of trade in goods between them.
New guidelines introduced for the transportation of edible vegetable oil: China’s top market regulator has launched the mandatory standards for transporting edible oil after a few companies were seen transporting cooking oil in tankers which were used to move liquid fuels. A few examples are the Sanhe Hopeful Grain and Oil Group and China Grain Reserves Group, which have been reported to have transported cooking oil in the same tankers that were previously used for delivering liquid fuels produced from coal. As per the state administration for market regulation, the standards under the title ‘ sanitary requirements for the bulk transportation of edible vegetable oil’ are going to come into force from February 1st, 2025. The new regulations have outlined the requirements that containers for edible vegetable oil must be packaged in dedicated containers which are food-graded marked with ‘for edible oil only’ and not ‘food use only’. Containers used for non-food items are prohibited from transporting edible oils. Furthermore the interior and exterior of the containers are strictly to be clean and sanitary. Previous to this, China had only one non-mandatory standard for the bulk transport of edible oils stipulating that bulk edible vegetable oils should be transported using dedicated tankers.

SOCIAL MEDIA CHATTER

China targets tax-evading live-streamers amid struggles in local economies: A few local-level authorities across the country have been stepping up crackdowns on tax evasion among internet streamers as flagging tax revenue has been weighing heavy on local economies and analysts expect such investigations to be more frequent in near future. China’s state taxation administration announced three cases of tax evasion from 2020-2023 which involved live-streaming influencers and as a result, hefty fines were imposed. The country’s highest tax regulatory body pledged to support the growth of diverse business entities while upholding a strict ‘zero tolerance’ policy against tax evasion and related misconduct. The administration stated that as public figures online live-streaming influencers have a legal duty to fulfil their tax obligations and are supposed to set positive examples for their fans. All the fined broadcasters were part of a booming trend in China’s digital landscape: selling products through live-streaming.

INDIA WATCH

Warming India-China relations raise expectations for renewed trade: India and China have made significant progress towards coming to a consensus on their border tensions. This has increased hope for a revival in trade ties that could open up Chinese investments in EV and consumer electronics sectors. Indian Foreign Minister, S. Jaishankar stated that the progress in disengagement of troops from both sides of the borders is a ‘welcome move’ opening up the possibility of other steps happening in the future. After the ties between both countries hit their lowest points in 2020, it is only now that the relations have begun to revive with the withdrawal of soldiers on both sides of the border.

Prepared By

Aditi Khamkar

Aditi Khamkar is a third-year undergraduate student at FLAME University majoring in International Studies and minoring in Public Policy. Having completed an internship at International SOS, her interest in security has deepened, driving her to pursue a career as a security analyst. Passionate about making meaningful contributions, she aspires to write impactful analyses that address global security challenges.