CiCM 20th February 2024

NEWS IN CHINA

After the holiday season, China witnesses a massive plunge in the fare prices of travel tickets and hotel stays: Following the Spring Festival travel peak, netizens discovered remarkably low airfare prices for flights from Shanghai to Japan on Ctrip. With rates as low as 8 yuan and total costs around 410 yuan, travellers were enticed by this unusual opportunity. A spokesperson from the platform attributed these rock-bottom prices to the surplus in air transport capacity resulting from a rapid decline in tourist numbers post-holiday. This trend extends beyond air travel, with significant drops in prices for hotels, group tours, and car rentals observed across various destinations. Group tour prices in popular spots like Sanya, Beijing, and Yunnan have seen reductions of up to 50%. Additionally, discounted air tickets are available for destinations like Macau, Jeju Island, Bangkok, and Singapore, with fares ranging from 400 to 700 yuan, a fraction of their usual costs during the holiday season. Domestic flights from Shanghai to cities like Chongqing, Changsha, and Chengdu are priced as low as 100 yuan until the end of February, while flights from Beijing to Xi'an, Chongqing, and Wuhan are similarly discounted until mid-March. Hotel prices in key tourist hubs such as Harbin, Nanjing, and Suzhou have plummeted by 40% to 50%, with significant reductions also seen in Sanya, Xi'an, and Hangzhou. Even car rental prices in Urumqi, known for cross-peak skiing, have dropped, with SUV rentals starting at 25 yuan until mid-March.

All-China Federation of Trade Unions issues notice on Selection and Training of Great Country Craftsmen in 2024: The All-China Federation of Trade Unions has released a notice to select approximately 200 great country craftsmen for training in 2024, aiming to support Made in China and China Creation initiatives. Over a two-year period, around 1,000 provincial and ministerial level craftsmen and 5,000 municipal level craftsmen will also receive active support and training. Candidates for training must possess excellent political quality, over 5 years of frontline production experience, and a commitment to the craftsman spirit of excellence, persistence, and innovation. They should demonstrate exceptional technical skills and proficiency in manufacturing. The selection process involves application, recommendation, review, and publicity, with emphasis on leadership, practice, innovation, problem-solving, and inheritance potential. Selected candidates will undergo a 2-year training program organized by the All-China Federation of Trade Unions, including training, exchanges, studies, and project support. Recommended units are tasked with developing and implementing their own training plans for craftsmen, with successful candidates receiving Great Country Craftsman Certificates upon completion of the training tasks and passing the evaluation. These craftsmen will receive benefits such as visits, health examinations, and medical services in line with national model worker standards. Salary and benefits will be determined based on individual ability levels, aiming to support further contributions from the craftsmen.
China launches National data resource survey: China has initiated a nationwide survey of its data resources. Scheduled from February 18 to March 5, this endeavour aligns with the directives outlined in the "Overall Layout Plan for the Construction of Digital China." The objective is to identify data resource bases, expedite their development and utilization, and maximize their value. Collaborating entities include the National Data Administration, the Office of the Central Cybersecurity and Information Technology Commission, the Ministry of Industry and Information Technology, and the Ministry of Public Security. The survey encompasses various sectors such as provincial data management agencies, industry and information technology departments, public security bureaus, key vendors of data collection and storage equipment, internet platform enterprises, technology firms specializing in big data and artificial intelligence, and more. Each participating unit is required to access the national data resources survey management platform within the stipulated timeframe and complete the survey form. Regional authorities are tasked with organizing local entities to ensure compliance, with different quotas set based on geographic regions. Eastern provinces are to engage the top 100 companies, while central, northeastern, and western regions target the top 80, and top 50 companies respectively.
China’s indigenous C919 aircraft makes its international debut at Singapore Airshow: Two C919 planes and three ARJ21 aircraft, manufactured in China, made their official debut at the Singapore Airshow, showcasing the progress of China's commercial aircraft project. The event features flight demonstrations, in-hall model exhibitions, and outdoor displays, offering a glimpse of China's achievements in commercial aviation. The presence of China's homegrown passenger jets at the international airshow is significant, as it boosts confidence in Made-in-China aircraft among international customers. Western media and market analysts have also highlighted the C919's debut as one of the most anticipated features of the event. With aerobatic teams from various countries and over 1,000 participating companies, the six-day airshow is expected to attract 50,000 attendees from over 50 countries and regions. Notably, the organizer has set up a country pavilion for Chinese aerospace enterprises for the first time. For the manufacturer of the C919, 2024 will be a critical year to accelerate mass production, explore overseas markets, and promote the aircraft to international airlines. Government policy support has propelled the domestic aircraft production, with plans to collaborate with European counterparts to promote the aircraft abroad. COMAC, the manufacturer of C919, plans to invest significantly to increase production capacity and achieve stable growth in the next three to five years. The C919, with its advanced design and technology, lower emissions, and higher fuel efficiency, is poised to attract more global buyers at the Singapore Airshow, marking a milestone in China's aviation industry.
China Implements Record Rate Cut to Boost Economic Revival: The People's Bank of China (PBOC) implemented its largest-ever cut to the over-five-year loan prime rate (LPR), reducing it by 25 basis points to 3.95 percent. This bold move signals a concerted effort to rejuvenate the economy, particularly the housing sector. Experts foresee further rate cuts in the second quarter, potentially including reductions in the medium-term lending facility rate (MLF rate). However, concerns about potential yuan depreciation may temper the pace of future rate adjustments. While the primary objective is to stimulate economic activity, the impact on global monetary dynamics remains uncertain. The rate cut is expected to provide significant relief to new homebuyers, potentially saving them 150 yuan ($20.84) per month on a 30-year, 1 million yuan mortgage. As global economic conditions evolve, China's monetary authorities are likely to carefully monitor developments and adjust policies accordingly to sustain growth and mitigate risks effectively.
China and Hungary Strengthen Cooperation in Law Enforcement and Security: China and Hungary are strengthening their collaboration in law enforcement and security, as evidenced by recent discussions and agreements between the two nations. During a meeting in Budapest, Chinese State Councilor and Minister of Public Security Wang Xiaohong conveyed China's readiness to deepen political trust and enhance cooperation with Hungary in international and regional affairs. Emphasizing Hungary as a steadfast friend and partner, Wang proposed intensified efforts in counter-terrorism, combatting transnational crime, and bolstering security and law enforcement capacities related to the Belt and Road Initiative. Hungarian Prime Minister Orban reciprocated by affirming Hungary's respect-based relationship with China, highlighting the diminishing trend of respect in international diplomacy. Both sides underscored security and stability as crucial foundations for advancing economic and trade ties. Despite Hungary's NATO and EU membership, it maintains a strategic interest in fostering closer relations with China, viewing Chinese investment as essential for long-term economic prosperity. Hungarian officials, including Interior Minister Pinter and Foreign Minister Szijjarto, echoed the sentiment that security guarantees are pivotal for deepening comprehensive strategic cooperation with China, advocating for pragmatic cooperation over isolationist policies in light of China's economic prominence.
Surge in Marriage Rates Offers Hope Amidst China's Declining Trends: Several major Chinese cities, including Jiangsu province and Shanghai, witnessed an uptick in marriage rates in 2023, attributed to post-pandemic pent-up demand and increased migration. While promising, experts caution sustaining this growth may be challenging amidst persistent population decline since 2013. Government policies, such as subsidies and childcare support, aim to address demographic issues, but effectiveness remains uncertain. Preliminary data for 2023 shows a rise in marriages, but skepticism exists regarding nationwide extension in 2024. Challenges include a consistent birth population decline and fewer women of childbearing age. Despite projections of modest population growth in 2024, long-term reversal of declining births remains complex due to low birth rates and demographic shifts, requiring sustained efforts in policy and societal support.

SOCIAL MEDIA CHATTER IN CHINA

Record-breaking Lottery Win in China Sparks Excitement and Speculation: A 28-year-old man from Guizhou province in China recently won a record-breaking 680-million-yuan (US$96 million) lottery jackpot, the largest in the country's history. He purchased 133 tickets, each costing two yuan (28 US cents), all with the same set of seven numbers, earning him a prize of 5.16 million yuan (US$725,000) per ticket. Reflecting on his disbelief and excitement upon learning of his win, he stated, “At first, I didn’t believe it, so I verified it several times. I was too thrilled to sleep.” He also shared his strategy, saying, “I’ve been researching the trend of numbers appearing in previous winning tickets. I chose some of those and added one of my own lucky numbers to bet on.” This win surpasses China's previous record of 570 million yuan, set in 2012. Large lottery prizes often garner attention on social media, with some cases raising suspicion or controversy. For instance, a man in Jiangxi province who won 200 million yuan after spending 100,000 yuan on tickets, and another in Guangxi Zhuang who kept his 218-million-yuan win secret from his family, fearing they would "swell in their heart" and stop working hard.

INDIA WATCH

Similar to made-in-China aviation boost, India's aviation sector too is poised for unprecedented growth, propelled by robust government support and strategic initiatives aimed at bolstering domestic aircraft manufacturing and global competitiveness. At the Singapore Airshow, India showcased it's indigenously made Advanced Light Helicopter Dhruv for the first time. Under the "Make in India" campaign, the government incentivizes indigenous manufacturing, providing financial and regulatory support to domestic aircraft manufacturers. Initiatives like the Regional Connectivity Scheme (RCS), or UDAN, have revolutionized air travel by enhancing connectivity to remote regions, stimulating economic development. The Production Linked Incentive (PLI) scheme incentivizes manufacturers to invest in research and development, fostering innovation. India's aircraft manufacturers are leveraging cutting-edge technologies to design and produce state-of-the-art planes, boasting advanced avionics systems and fuel-efficient engines. India collaborates with European nations to advance its aviation sector, leveraging technology exchange, joint manufacturing ventures, regulatory alignment, and skill development initiatives to boost competitiveness and global market reach. Looking ahead, India aims to scale up production capacity and explore new overseas markets, emphasizing indigenous aircraft promotion to international airlines.

Prepared By

Aachal Ashok Mishra

Aachal completed her graduation in Political Science from Banaras Hindu University. Currently she is pursuing her master's in Political Science from IGNOU. Her areas of interest revolve around international relations, foreign policy dynamics, defence and security. She has previously interned with the Council for Social Development and the Centre for the Study of Developing Societies.