CiCM 2nd-3rd March 2024

NEWS IN CHINA

CPPCC unveils agenda for annual session with focus on modernization and consultative oversight: The Chinese People's Political Consultative Conference (CPPCC) National Committee, China's top political advisory body, announced during a press conference held on Sunday that its annual session would be held between 4^th – 10^th March. This session marks the second gathering of the 14th CPPCC National Committee. CPPCC spokesperson Liu Jieyi highlighted the achievements of the committee over the past year, describing it as a "good start" in fulfilling its duties. He emphasized on improving the political capacity of its members through various means, including training, reading, and theoretical study. Over the past year, the 14th CPPCC National Committee focused on providing suggestions to advance China's path to modernization across multiple sectors. These included initiatives such as rural revitalization, support for private enterprises, ecological civilization, promoting Chinese cultural influence, and addressing demographic challenges. Looking ahead to the current year, Liu stated that the committee remains dedicated to its mission of contributing advice and recommendations aligned with the CPC Central Committee's decisions and the country's strategic needs. Liu also highlighted the CPPCC's efforts to enhance the quality of its consultation processes and promote consultative oversight. He noted that the committee had conducted 94 consultation activities, with thousands of participants and speakers contributing their opinions and suggestions. It was also disclosed that China had created 12.44 million new urban jobs in 2023. Governments at all levels, along with various funds, allocated over 300 billion yuan ($41.7 billion) to support employment and entrepreneurship. The CPPCC submitted 91 proposals to address employment issues, including establishing university-industry linkages. During the press conference, Liu answered questions from both domestic and international reporters on topics such as Chinese-style modernization and the high-quality development of the Chinese economy.

Romania's rejection of Huawei for 5G sparks diplomatic concern: In response to Romania's recent decision to reject Huawei's application for 5G infrastructure equipment authorization, the Chinese Embassy in Romania has voiced deep regret and serious concern. The rejection, conveyed through an official communiqué issued by the Romanian government on February 29, has prompted diplomatic tensions between the two nations. Chinese embassy spokesperson emphasized Huawei's longstanding presence in Romania, spanning two decades of investment and operation in strict compliance with Romanian laws and regulations. Highlighting Huawei's positive contributions to Romania's digital economic development, including job creation and fiscal revenue generation, the spokesperson urged Romania to reconsider its stance. He underscored the potential for greater cooperation in information and communication technology (ICT) if Romania provides a conducive market environment, warning of substantial damage to bilateral economic and trade cooperation should the rejection persist. The timing of Romania's decision is notable, considering the 75th anniversary of diplomatic relations between China and Romania. The rejection of Huawei's involvement in Romania's 5G network construction reflects broader concerns regarding national interests and security in telecommunications infrastructure. He clarified that the Chinese government vows to safeguard the legitimate rights and interests of Chinese companies amidst the evolving landscape of international relations and technological competition.

China increases transaction limits for foreigners' mobile payments: China announced a significant increase in transaction limits for foreigners' mobile payments, aiming to address challenges faced by international visitors. Deputy Governor Zhang Qingsong of the People's Bank of China revealed plans to guide major payment institutions like Alipay to quintuple the single transaction limit for foreigners in China, raising it from $1,000 to $5,000. Additionally, the annual cumulative transaction limit will surge from $10,000 to $50,000. To further facilitate foreigners' mobile payments, the central bank will support payment institutions in enabling foreign users to efficiently link their mobile payment accounts with foreign bank cards and streamline identity authentication procedures. Efforts include facilitating foreign visitors' bank card payments in large transactions, promoting mobile payment via QR codes for smaller amounts, and ensuring cash payment as a last resort. Data from the central bank revealed that nearly 4 million foreign visitors used mobile payments in China last year, conducting over 70 million transactions worth more than 10 billion yuan ($1.38 billion). The State Council approved a guideline on February 23 to promote the acceptance of foreign bank cards, enhance cash usage, improve mobile payment convenience, and optimize account services.

Report highlights progress in China's fight against domestic violence since 2016 landmark law: A recent report released by Equality, a Beijing-based nonprofit, has highlighted advancements in China's efforts to combat domestic violence since the introduction of a landmark law eight years ago. The report reveals that additional provincial laws have expanded the reach of the 2016 domestic violence law, leading to increased awareness and improved protective measures. The 2016 law, known as the "family violence" law, has been instrumental in unifying provincial legislations and addressing domestic violence comprehensively. Notably, it introduced "personal safety protection orders," enabling swift court intervention to safeguard victims. Furthermore, 18 provinces have implemented supporting laws to bolster the definition and application of domestic violence laws. The report also notes a steady increase in the issuance of personal safety protection orders by courts nationwide, reaching over 15,000 orders by August 2023. Additionally, the Supreme People's Court published model cases last November to guide courts in handling domestic violence cases effectively. While acknowledging ongoing challenges, including the need for better enforcement and enhanced training, experts emphasize the significant strides made in protecting victims and prosecuting perpetrators of domestic violence in China.

China's manufacturing sector shows resilience amid global economic uncertainty: Amidst the uncertainties of the global economy, China's manufacturing data indicates signs of recovery and resilience, propelled by robust service activities and policy support. The Caixin manufacturing purchasing managers' index (PMI) climbed to 50.9 in February, marking the fourth consecutive month of PMI above 50. However, challenges persist, including a decline in new export orders and uncertainties in key economies like the U.S. and euro area. Despite these challenges, China's focus on stimulating consumption, innovation, and technology investment is expected to support manufacturing sector. Policies promoting equipment upgrading and consumer goods replacement aim to enhance product quality and foster demand for advanced machinery and technology. Moreover, monetary easing measures by the People's Bank of China, including reductions in reserve requirements and loan prime rates, aim to lower financing costs for businesses, encouraging investment in manufacturing capacity and technology. The resilience of China's non-manufacturing sector, with a rise in the non-manufacturing PMI to 51.4 in February, further bolsters economic optimism. Increased holiday travel and consumer spending during the recent Chinese New Year holiday signal growing confidence and spending, benefiting manufacturing through heightened demand and investment. During this year’s spring festival holidays, 632.7 billion yuan were spent which marked a 47.3 percent increase over the last year. As China continues to prioritize domestic demand, innovation, and resilience, its manufacturing sector remains a key driver of economic stability and growth.

NDRC calls for accelerated AI development: In preparation for the upcoming annual meetings of the National People’s Congress and the Chinese People’s Political Consultative Conference, Zheng Shanjie, Chairman of the National Development and Reform Commission (NDRC), recently visited artificial intelligence (AI) firms and research institutes in Beijing. Zheng's tour aimed to emphasize the importance of technological innovation and the high-quality development of China’s AI industry. During the visits to institutions such as Zhiyuan Research Institute, Baidu, and 4Paradigm, Zheng encouraged proactive adaptation to technological trends, strengthening of research and development, and acceleration of industry-enabling applications, according to the NDRC. . While China has made significant strides in AI development, challenges remain, including limited access to advanced chips due to US export controls. Despite China's strong foundation in AI applications, there is recognition of the need to address this disparity. To this end, China has launched an infrastructure drive focused on AI, with state-owned enterprises ordered to play a greater role in the sector. Efforts to enhance domestic chip production are underway, with state-owned enterprises collaborating with major firms like Huawei Technologies. Projects such as China Mobile's intelligent computing centre in Hohhot, Inner Mongolia, are indicative of China's commitment to boosting AI infrastructure. This facility, set to be Asia's largest, will see over 80% of its components manufactured domestically. As the nation gears up for two sessions, advancements in AI are poised to feature prominently in discussions about future economic strategies.

SOCIAL MEDIA CHATTER IN CHINA

Lost homework saga sparks media firestorm as blogger's viral video leads to controversy: A video posted by a popular female blogger Thurman has sparked widespread attention across the internet, garnering over five million likes in a short span of time. The incident unfolded when a French waiter handed Thurman a stack of Chinese homework workbooks found in a restroom of a restaurant in Paris, hoping she could assist in locating the owner. Thurman then documented her efforts to return the homework, revealing it belonged to a first-grade student named Qin Lang. The internet quickly mobilized in search of the young student, with a supposed "uncle" of Qin Lang claiming on Douyin, that his nephew attended Sichang Elementary School and had lost his winter holiday homework. However, investigations later falsity of his claims, resulting in his ban from the platform. Thurman asserted that the homework had been returned, resolving the issue on her end. Amidst waves of controversy, she clarified her stance stating that she never specified Qin Lang's school and even shared a chat with the student's mother, who thanked her for her efforts. However, skeptics raised doubts about the legitimacy of the screenshot and chat history provided by Thurman. The situation took an unexpected turn when CCTV, a national media outlet, weighed in on the incident with a critique titled "It doesn’t matter Who Qin Lang Is: The Danger of Rampant Yellow Journalism." The article criticized the trend of sensationalist, low-value news, accusing it of merely catering to the public's desire for entertainment. Opinions on the matter were divided, with some defending Thurman's actions as part of the routine of staying relevant as a blogger, while others echoed CCTV's sentiments, condemning the sensationalization of trivial incidents.

INDIA WATCH

India's "Make in India" initiative has garnered attention for its ambitious goal of transforming the country into the world's largest manufacturing hub and increasing the manufacturing sector's contribution to GDP from 15 percent to 25 percent. Unlike the "Made in China" program, which focuses on transitioning to high-tech manufacturing, India's approach aims to leverage its lower labor costs and burgeoning middle-class market. Structurally, "Make in India" represents the initial phase of India's efforts to establish itself as a global manufacturing hub. This is in contrast to China, which is already world's largest manufacturing hub and is now transitioning towards high-tech manufacturing. China's shift away from low-cost and volume production presents an opportunity for India to attract foreign investors seeking alternatives. India's strategy to attract investors differs from China's heavy reliance on tax incentives. Instead, India focuses on creating a sustainable middle-class market and expanding manufacturing to generate employment opportunities. The current government emphasizes the importance of a growth-oriented environment in addition to incentives to attract investors. Despite India's advantages such as a large domestic market driven by its demographic dividend, the country faces challenges in terms of manufacturing competitiveness. High land rates, electricity tariffs, and a corporate tax rate of 25-40% percent pose obstacles to attracting global investors. For instance, corporate tax rates in India exceed those of several Southeast Asian countries. Addressing these challenges will be crucial for India to enhance its manufacturing competitiveness and realize the objectives of the "Make in India" initiative. By leveraging its demographic dividend, focusing on infrastructure development, and implementing business-friendly policies, India can attract greater investment and strengthen its position as a global manufacturing hub.

Prepared By

Shourjyadipta Roy

Shourjyadipta Roy is currently pursuing his Masters' in Political Science and International Relations from the Department of International Relations, Jadavpur University. He takes a keen interest in Chinese foreign policy, China's impact on the world and Chinese politics as a whole. He plans to pursue research in the near future.