CiCM 24th-25th June 2023

NEWS IN CHINA

The Central Commission for Discipline Inspection (CCD) recently released the data of inspections and investigations held this year to fight against corruption. According to the data, at least 40 managers of central state-owned enterprises involving Anshan Iron and Steel, Sinopec, China Mobile, China Southern Power Grid and others have been inspected as well as investigated which has made the future of building a clean and honest government a complicated task. Central enterprises have played a vital role in the growth of the country and thus the need for anti-corruption measures is essential. While deploying anti-corruption measures, the energy sector was found to be frequently prone to corruption due to heavy investments and concentrated authority. State Grid, State Power Investment Corporation, Datang Group, China Huaneng etc are among the most frequently included central power and energy central enterprises in the list of investigators.
The three-day Dragon Boat Festival holiday came to an end with almost 106 million domestic tourists travelling nation-wide, a 32.3 per cent increase compared to last year. The festival reached the revenue mark of 37.310 billion yuan, a 44.5 per cent increase as the consumer market was filled with enthusiasm. According to several reports, this year’s Dragon Boat Festival is said to be the liveliest when compared to the last five years. According to the Ministry of Transport, nearly 140 million passengers travelled through the country’s railways, highways, waterways and civil aviation.
Chinese authorities have put forward a series of policies to enhance the development of new-energy vehicles (NEVs) by extending the current NEV purchase tax exemption policy till 2027. This change in policy can exempt people from purchase tax upto 30,000 yuan per vehicle if purchased in 2024 and 2025. The extension of this policy was previously done in 2017 as well as in 2020 and 2022. The NEV sector has shown some good progress despite the energy transition issues but China is determined to fast-forward the developments and reform the industrial standards of network security, functional safety etc. The competitiveness of domestic NEV companies has resulted in the brands to acquire the global stage and promote internationalisation.
The world’s largest and highest-altitude hydropower and photovoltaic power station, the Kela photovoltaic (PV) power station went into operation on 25th June, 2023. The power station, located in the Yalong River Basin of Southwest China’s Sichuan Province, covers an area of nearly 16 million square metres. Through this project of complementary operation between hydropower and photovoltaic, China is looking forward to achieving its energy security and dual carbon goals. PowerChina Chengdu Engineering Company undertook the responsibility of the Kela project in 2016 and is now actively taking part in the surveying and planning of natural resources in the Yalong River Basin. The project developer faced several challenges in its completion such as fluctuation and intermittency of PV power generation and the stability of combining solar and hydro power. Moving forward, the Yalong River Energy Base is looking towards a cleaner and greener future.
Heavy rainfall in southern China has led to rising water levels in nearly 16 rivers, surpassing the warning lines. In response, the Ministry of Water Resources dispatched five work groups in order to provide guidelines on flood prevention in the affected areas. The rivers in the Pearl River basin and near the Dongting and Poyang lakes are expected to push through the warning lines with the continuing heavy showers. Guangxi, Hunan and Zhejiang regions have maintained their emergency responses to flooding. The Ministry is reported to keep a close watch on the progress of floods and implementation of precautionary measures.
China’s Ministry of Commerce (MOFCOM) has taken a committed action for the development of the country’s Pilot Free Trade Zones (PFTZ) from 2023 to 2025 by issuing a 164-task list in which each PFTZ has been assigned with seven to 10 tasks that includes platform construction, important industries development, institutional innovation and other projects. The list is said to focus on three key aspects which are to strengthen classified guidance, improve supporting policies and promote and reform the PFTZs. The Shanghai PFTZ will be improved to create a world-class business environment, the Zhejiang PFTZ is said to receive guidelines regarding development of the digital economy and the Shandong PFTZ will be supported to conduct marine economic innovation. Through the expansion of the PFTZs, China aims to widen the scope of opportunities and development with the entire world.

SOCIAL MEDIA CHATTER IN CHINA

Chinese media reacts to the Russia-Wagner issue: The accusation of Russia launching a deadly missile strike on its troops in Ukraine through the private Russian military force Wagner has gained much attention on Chinese online platforms such as Baidu and Weibo. While many Chinese netizens are showing support for Russia, others are labelling the pro-Russia supporters as ‘Yellow Geese’ to mock their stance. Russia is usually nicknamed as ‘big goose’ in China (大鹅) since both the words ‘goose’ and ‘Russia’ sound the same. With the upcoming reports of tensions between Russian troops and Wagner mercenaries and the televised speech of President Putin on 24th June, the topic “Putin Accuses Wagner Head [Prigozhin] of Treason” (#普京指责瓦格纳负责人叛国#) received 1.2 billion views on Weibo within a few hours. President Putin declared Wagner’s attempt to destabilise Russia internally as an act of treason. Since then, hashtags surrounding the new reports, discussions on Russia’s ‘anti-terror measures,’ and Putin’s conversations with its allies have been gaining significant attention on the Chinese media outlets. Discussions around global peace and the effect of Russia’s internal turmoil on China due to the shared border of the two countries has been going around with netizens wondering about the evacuation of citizens from border areas and employment of safety measures.

INDIA WATCH

As one of the largest producers of hydroelectricity, China has been developing new projects to safeguard its energy demands and extend renewable energy sources throughout the country. The Kela photovoltaic and hydropower station is an essential example of China establishing a leading role in fulfilling carbon neutrality goals. The Kela project has overcome the challenges of complementary operation between hydropower and photovoltaic, setting a new benchmark in the present energy scenario. China has been progressing rapidly since its first hydropower station in Yunnan Province in 1910. In the present scenario, the hydropower capacity of India is on a decline. Since the involvement of the private sector in hydropower generation in 1991 and the formulation of the hydropower policy in 1998, India saw a growth in hydropower capacity but it has not been enough to achieve its clean energy and net-zero goals. Solar energy, on the other hand, has had a more positive growing impact rather than hydropower in the current Indian energy scenario. Various schemes such as Solar Park Scheme, VGF Schemes, and CPSU Schemes have been launched to encourage and promote solar power in the country. Despite being rich in hydropower resources, China is facing issues of uneven distribution whereas India is having financial stress and contractual conflicts due to which several hydropower projects have been deteriorating. Just like India has been working towards expanding the solar energy projects through initiatives such as the International Solar Alliance, the country needs to expand its policies and initiate collaboration in hydro-projects as well to provide abundant and affordable clean energy to all.

Prepared By

Aanchal Budhwar

Aanchal Budhwar is currently pursuing her Masters degree in International Studies from Symbiosis School of International Studies in Pune with a specialisation in Asia Area Studies. She completed her Bachelors degree in English Honours from MCM DAV College, Chandigarh. She is an avid reader and is passionate about learning new languages. She is keen on learning about Asian culture and geopolitics and deciphering the strategic meaning behind the political, diplomatic, cultural, economic and social developments taking place in China and its impact beyond the borders.