CiCM 18th December 2024

NEWS IN CHINA

China and India Renew Dialogue with Special Representatives Seeking to further Ease Border Tensions: On December 18, 2024, China and India renewed dialogue and emphasized strategic, long-term perspectives, aiming to revive bilateral ties during the 75th anniversary of diplomatic relations in 2025. China underscored the need to adhere to peaceful coexistence, resolving differences through dialogue, and focusing on the broader interests of their citizens and the Global South. It urged mutual trust, dialogue and border stability as key factors to enable cooperative bilateral ties. The two countries reached a Six-Point Consensus highlighting border security, fair resolution based on the 2005 guiding principles, trust building, cross border cooperation, strengthened mechanisms to improve diplomatic and military coordination and future dialogue, as planned in 2025. This development comes after both nations’ special representatives reflected on the Kazan summit, and resumed high-level discussions on their border dispute after a five-year hiatus during the 23rd Special Representatives meeting held in Beijing.
Xi Jinping Visits Macao to Mark 25th Anniversary of Return to China:Chinese President Xi Jinping arrived in Macao on Wednesday to participate in celebrations marking the 25th anniversary of Macao’s return to China. He will attend the inauguration ceremony for the sixth-term government of the Macao Special Administrative Region (SAR) on Friday. During his visit he is also expected to inspect the Macao SAR, reflecting the government’s commitment to the region and its governance. At the airport, Xi praised the success of "one country, two systems" in Macao, highlighting its global recognition and vitality. Describing Macao as "a pearl on the palm" of the Chinese motherland, Xi expressed optimism for its future and reinforced Beijing’s commitment to the region's development. He also visited the Macau University of Science and Technology where he was briefed on the development of two state-level key laboratories in the university - one on the quality of traditional Chinese medicine and the other on lunar and planetary science. At the university, he also engaged with students, faculty and staff.
China’s GenAI Sector Witnesses Higher Funding but Fewer Deals: China's generative AI (GenAI) sector has seen increased funding but fewer deals in 2023, reflecting a shift toward selective investments. As of December 18, the industry recorded 113 deals which is 20 percent less than the previous year, as per records from Itjuzi.com. However, funding surged to 35 billion yuan (US$4.8 billion), a significant rise from 20.5 billion yuan in 2022, as investors preferred investing with established players in an increasingly crowded and uncertain market. The "Chinese AI Tigers" – Zhipu AI, Moonshot AI, Baichuan, and MiniMax – raised approximately US$2.1 billion, accounting for nearly half of the year's total GenAI funding. Zhipu AI alone secured US$412 million in its fourth financing round as it adopted a diversified approach to stay competitive. Despite increased investments, the number of newly approved GenAI services declined, with only 64 gaining regulatory approval in November, hinting at market saturation.
China Rejects U.S. Blame Over Fentanyl Crisis: Chinese Foreign Ministry Spokesperson Lin Jian strongly criticized U.S. lawmakers for proposing three bills linking China to the U.S. fentanyl crisis. The claims were called out as being baseless, false and politically motivated. Lin asserted that the root cause of the crisis lies in U.S. domestic issues, including weak regulations and high domestic demand for drugs, and urged American policymakers to resolve internal problems rather than shift the blame to China. The proposed U.S. legislation included sanctions against Chinese entities and the establishment of a task force focusing on addressing narcotics trafficking. Lin however emphasized that China has one of the world's strictest anti-drug policies. He further urged the U.S. to adopt practical domestic solutions, suggesting that attempting to smear China’s global image would potentially harm the bilateral relationship between the two countries.
China Halves Dividend Fees to Boost Investor Returns: China announced measures to halve the dividend handling fee for A-shares in the Shanghai and Shenzhen markets, effective from January 1, 2025. Under the new policy, fees will be reduced to 0.5 percent of total dividends, with exemptions for fees exceeding 1.5 million yuan. The policy aims to allow for larger investor returns, following a surge in dividend payouts among A-share listed companies. In 2024, nearly 4,000 listed companies distributed approximately 2.4 trillion yuan in dividends, a 10 percent increase from the previous year. Semi-annual and quarterly dividends also witnessed a significant increase, reflecting growing awareness of shareholder returns and encouraging this policy. This shift stems from regulatory efforts encouraging flexible cash dividends. Recent dividend announcements from firms like Yuanli Co., Bohai Ferry, and Ningde Times have drawn public attention signalling a stronger commitment to shareholders in China’s capital markets.

SOCIAL MEDIA CHATTER

China’s “White Mafia” Offers Bodyguard Services to Vulnerable Women, Gains Netizens’ Approval: A growing trend in China has seen young women hiring a group known as the “white mafia” for protection and assistance with personal issues, such as abusive relationships or dishonest landlords. Officially known as the “Professional Bodyguard Team,” the group consists of retired military officers, female boxers, and business owners. Initially established in 2018 to protect celebrities, the team shifted its focus in 2022 to address gaps in the law, offering services to vulnerable individuals, particularly females. Their clients, 70% of whom are women aged 25 to 35, pay between a few thousand and over 10,000 yuan (US$1,400) for help, depending on the case’s complexity. Their methods - deemed “legal intimidation” or “persuasion” - address issues like domestic violence, bullying, and withheld deposits. The group also emphasises that their actions align with Chinese law, oftentimes guiding their clients to seek police or legal assistance. The “white mafia” is widely praised on Chinese social media as a legal yet formidable force to protect vulnerable groups. One user commented “This is a true ‘civilian police station’, where the ‘big brothers’ use legal means to protect vulnerable groups caught in the legal grey area.” Another commented “I hope your team continues to grow bigger and stronger!”

INDIA WATCH

Chinese Media Critiques India's Approach to China: In an Op-ed published on China Daily, the author stated that India's evolving stance on China was a reflection of its acknowledgment of past shortcomings and economic setbacks caused by strained relations. The article stated that India’s restrictive measures, such as curbing Chinese investments and visas, had previously drawn criticism from the general public for undermining its economy, particularly high-end manufacturing sectors. The piece also commented on India's attempts to intensify its ties with Western powers, claiming it to be counterproductive given the country’s policy of nonalignment. The article also cautioned India against succumbing to Western geopolitical pressures, warning that the border tensions were exploitable by foreign forces to destabilize the region. It concluded by stating that the recent willingness to re-engage constructively with China was a positive step in the right direction, meant to maintain strong bilateral ties and work towards shared goals of climate change and regional peace.

Prepared By

Taasha Mistry

Taasha Mistry is a third year undergraduate student at FLAME University, pursuing a major in International Studies with a minor in Advertising & Branding. After having completed an internship at International SOS, she has found her interests to lie in security and strategic studies. Intrigued by the ever changing dynamics in the modern day world, she keeps herself updated with daily news and events.