CiCM 19th September 2024

NEWS IN CHINA

China Revises Safety Standards for Electric Bikes: China's Ministry of Industry and Information Technology (MIIT) has released a draft standard to improve the technical safety of electric bicycles, focusing on key optimizations in areas like fire-retardant performance and riders’ safety. The draft, open for public comments, revises seven aspects of the current regulations in place. It tightens fire-retardant requirements for components attached to the battery, limits the maximum speed to 25 kilometres per hour, and imposes stricter braking distance requirements. Additionally, it mandates the integration of BeiDou satellite navigation system and emphasizes enhancing product informatization to mitigate safety risks. China is a major producer and consumer of electric bikes with over 350 million units as of 2023. Major safety concerns include frequent fire incidents, some leading to casualties, due to the use of low-quality materials by manufacturers who lack adequate research and development facilities. The updated standards aim to address these issues by prioritizing fire prevention, reducing traffic safety hazards, meeting consumer needs, and promoting high-quality development of the industry. The MIIT also said that the revisions will not significantly impact production costs or market prices, ensuring a stable cost environment for manufacturers and consumers alike.

State Council Focuses on Several Pressing Issues During an Executive Meeting: During a State Council executive meeting, Chinese Premier Li Qiang called for a systematic implementation of the reform to gradually raise the retirement age prescribed by the law. Li emphasized that the reform addresses the challenges posed by an aging population while promoting high-quality development of Chinese people. He also added that reforms are necessary for harnessing the potential of the workforce and advancing modernization efforts. The reform is a key step in improving China's social security system and enhancing people's livelihoods. Li stressed the importance of voluntary participation and flexibility in implementing the delayed retirement policy, ensuring that it aligns with employees' preferences. Li called for an urgent formulation of supporting policies and their early implementation to ensure a smooth transition. Expanding employment, especially for young people and college graduates, is also seen as crucial for the reform’s success. He emphasized the need to protect workers' rights while revising employment policies. Further, Li highlighted the importance of strengthening elderly services, including the prompt implementation of policies to raise pensions for urban and rural residents and retirees. Senior officials like Ding Xuexiang, Wu Zhenglong, and Shen Yiqin were also present at the meeting. Earlier, the meeting also deliberated on measures to develop venture capital in China and studied the report on grain production and agricultural work in 2024. The meeting also drafted revised regulations regarding honouring the martyrs and adopted a draft of regulations on export control of dual-use items.

NDRC Spokesperson Highlights Plans to Boost Consumption: China’s National Development and Reform Commission (NDRC) is intensifying efforts to boost domestic demand by promoting investment and consumption. During a press conference, NDRC spokesperson Jin Xiandong outlined plans to enhance government investment while encouraging private sector participation in national projects. The NDRC aims to offer high-quality projects to private investors, promote public-private investment cooperation, and expedite the issuance of real estate investment trusts to stimulate private investment. To increase consumption, the NDRC will continue its "employment-first" policy and explore ways to raise incomes, thereby strengthening consumer spending power. Additionally, the NDRC plans to utilize ultra-long special treasury bonds to support consumer goods trade-ins and promote service consumption in sectors like culture, tourism, education, healthcare, and elderly and childcare services. China's consumer market has shown stable recovery in 2023, with retail sales of consumer goods rising by 2.1 percent in August compared to the previous year, according to the National Bureau of Statistics. The country’s consumer price index, a key measure of inflation, rose by 0.6 percent in August, up from 0.5 percent in July.

China Witnesses Net Increase in Farmland Over Last Three Years: China has experienced a net increase in farmland for three consecutive years, reversing years of decline, according to the Ministry of Natural Resources. Since 2021, the country has expanded its farmland by 17.58 million mu (approximately 1.17 million hectares), attributed to a focus on farmland protection, improved reforms, and an accountability mechanism. Liu Guohong, vice minister of natural resources, credited these efforts for stabilizing grain production and ensuring the country's food security. A dynamic control system at the provincial level has been established to maintain a balanced total farmland area, along with economic incentives to encourage continued protection efforts. China, which feeds over 1.4 billion people with just 9 percent of the world’s arable land, places a high priority on grain security. In recent years, the country has implemented various measures to boost grain output, including constructing more high-standard farmland and adopting advanced agricultural technologies. The results of these efforts have been evident, with China reporting its largest grain output increase in nine years, driven by a strong wheat harvest this summer.

China Launches the Last Batch of Beidou-3 Satellites: China launched the final batch of backup satellites for BeiDou-3 Navigation Satellite System (BDS-3) from the Xichang Satellite Launch Center in Sichuan. China launched two new satellites which will add to operational stability of the navigation system which will be stationed in medium earth orbit after in-orbit testing. China’s next target is to initiate the deployment of BeiDou-4 satellites for which these two satellites will carry out testing to enable technological upgradation. Besides the backup satellites, BeiDou-3 currently has 30 operational satellites distributed across medium earth orbit, geostationary orbit and inclined geosynchronous orbit. Most of the current operational satellites in BeiDou are deployed six years ago with a lifespan of 10 years. The newly launched satellites have atomic clock configurations and are connected to new inter-satellite link terminals. In future phases, China also plans to build a more comprehensive positioning, navigating and timing system in BeiDou system by 2035 to serve global consumers.

SOCIAL MEDIA CHATTER IN CHINA

Social Media Responds to Ye’s Concert in Hainan: The American musician Kanye West’s (popularly known as ‘Ye’) recent concert in Hainan has sparked a mixed response from Chinese netizens. Ye performed on 15^th September in front of 42,000 fans amidst opposition from local citizens due to his past behaviour. Some netizens raised questions over permission granted to a controversial musician like him despite China’s stricter censorship rules. However, factors such as Ye’s childhood connection to China as well as the government’s efforts to boost tourism in Hainan made the concert possible. Many outsiders also complained about the remote location in Hainan which made commute to the event venue difficult due to lack of efficient local transport. Ye’s concert after a long period has been viewed by some netizens as his homecoming while some people were impressed by his decision to bring his entire family for the show. Many people also appreciated his love for China as he wore a t-shirt bearing Chinese characters.

INDIA WATCH

China Discusses India’s Arms Exports to Ukraine: Based on the report published by the Reuters, Chinese Media reported that Indian arms have been re-routed to Ukraine in the form of aid through European companies. As per the report in Chinese media, companies in Italy and Czechia have been buying artillery shells from India and re-exporting to Ukraine after arming these shells with explosives. Chinese media also highlighted surge in exports of empty shells from Indian arms companies to European buyers between 2022 to 2024. Chinese media highlighted Indian arms export regulation which mandates that exported weapons can only be used by the declared purchaser. The report further mentions that India has taken no action to stop such re-routing despite opposition by Russia several times in the past. Another Chinese report cites Indian officials who stated that Russian Foreign Minister Lavrov raised concerns about arms exports to Ukraine with Indian Foreign Minister S. Jaishankar at several occasions. Officials further added that India is monitoring the situation but have not taken any action yet. The report questions India’s passive approach towards Russia in this regard despite Russia being the largest arms importer for India. However, Chinese media notes that India sees Russia-Ukraine conflict as an opportunity to develop its arms exports industry. It also cites Western scholars who view India-Ukraine arms trade as India’s action to show that it is not on Russia’s side.

Prepared By

Omkar Bhole

Omkar Bhole is a Senior Research Associate at the Organisation for Research on China and Asia (ORCA). He has studied Chinese language up to HSK4 and completed Masters in China Studies from Somaiya University, Mumbai. He has previously worked as a Chinese language instructor in Mumbai and Pune. His research interests are India’s neighbourhood policy, China’s foreign policy in South Asia, economic transformation and current dynamics of Chinese economy and its domestic politics. He was previously associated with the Institute of Chinese Studies (ICS) and What China Reads. He has also presented papers at several conferences on China. Omkar is currently working on understanding China’s Digital Yuan initiative and its implications for the South Asian region including India. He can be reached at obhole96@gmail.com and @bhole_omkar on Twitter.