CiCM 6-7th January 2024

NEWS IN CHINA

China to impose sanctions on five U.S. defense companies: In a stringent response to the recent U.S. arms sales to Taiwan and sanctions against Chinese entities, China has announced its decision to impose sanctions on five U.S. defense companies. A spokesman from the Foreign Ministry expressed strong dissatisfaction with the United States, citing a violation of the one-China principle and the three Sino-U.S. joint communiqués, particularly the August 17 communiqué. The imposition of illegal unilateral sanctions on Chinese enterprises and individuals prompted China's firm opposition. Under the People's Republic of China's Anti-Foreign Sanctions Law, the sanctioned U.S. defense companies include BAE Systems Land and Armament, Allied Techsystems Operation, AeroVironment, ViaSat, and Data Link Solutions. The measures outlined in the sanctions encompass freezing movable, real, and other types of property within China, along with prohibiting various organizational and individual activities such as transactions and cooperation. The spokesman emphasized the Chinese government's unwavering determination to safeguard national sovereignty, security, and territorial integrity, as well as protect the legitimate rights and interests of Chinese companies and citizens. The U.S. was urged to adhere to the One China Principle and the three Sino-U.S. Joint Communiqués, respect international law and basic norms of international relations, cease arming Taiwan, and halt illegal unilateral sanctions against China. China's Ministry of National Security also announced that the successful resolution of a case involving a British MI6 spy using third-country personnel for espionage against China. The WeChat public number of China's Ministry of National Security reported that Huang Moumou, identified as the head of a foreign advisory body, was developed by MI6 in 2015, establishing an "intelligence partnership." Under MI6's instructions, Huang entered China multiple times, using his public identity as a cover to gather intelligence for British spies and recruit personnel for MI6 counterintelligence efforts, claimed the Chinese side
A milestone in quantum computing as its third-generation superconducting quantum computer: "Origin Wukong" came online at Origin Quantum Computing Technology (Hefei) Co. The computer, powered by a 72-qubit superconducting quantum chip named the "Wukong chip," is considered the most advanced programmable and deliverable superconducting quantum computer in China. It marks the country's first successful implementation of automated batch testing of quantum chips, showcasing a remarkable increase in efficiency. With a total of 198 qubits, including 72 working qubits and 126 coupler qubits, the Wukong chip demonstrates China's commitment to advancing quantum computing technology. Origin Quantum, the company behind this achievement, has a strong track record in the field, ranking first in China and sixth globally in quantum computing patents. Despite the progress made, leaders in the field acknowledge the need for further advancements to compete with the world's leading quantum computing players. The development aligns with China's broader focus on fostering disruptive and cutting-edge technologies, including quantum technology, as highlighted in the Central Economic Work Conference held in December 2023.
CPC expels senior officials over serious violations in state-owned enterprises: Two senior officials, Tang Shuangning and Xu Wenrong, have been expelled from the Communist Party of China (CPC) for serious violations of discipline and the law, as announced by China's anti-graft watchdog. Tang, the former Party chief and chairman of the financial conglomerate China Everbright Group, was found responsible for weakening the Party's leadership within the group and neglecting to address financial risks. Additionally, he was implicated in taking bribes, including valuable calligraphy pieces and paintings, and using his influence to facilitate loans and promotions. Tang, known for his fondness for seeking pleasures, also accepted "butler-style" services. Xu Wenrong, the former deputy Party chief and deputy general manager of China National Petroleum Corporation, was accused of being corrupted by power and engaging in political swindles to climb the career ladder. He was found guilty of abusing his power to accept bribes and assisting in appointing his relatives as employees of state-owned enterprises without them having to work. The crackdown on corruption in state-owned enterprises was emphasized as a priority for anti-graft bodies in 2023, considering them crucial to the stability of the economy. On January 8, in response to the "10·27" general production safety liability accident in Happy Valley, Shenzhen, the Shenzhen Discipline Inspection Commission held nine public officials accountable. The Nanshan Supervision Bureau of Shenzhen Market Supervision Bureau, Nanshan District Culture, Radio, Television, Tourism and Sports Bureau, and Shahe Street Office were implicated. The accountability measures include written inspections for the relevant bureaus, a severe warning for a party member involved in safety supervision, and commandments for those lacking leadership responsibility. This action aligns with the CPC Accountability Ordinance and the CPC Disciplinary Punishment Ordinance.
China launched four meteorological satellites for Tianmu-1 constellation: China successfully launched four meteorological satellites as part of the Tianmu-1 constellation from the Jiuquan Satellite Launch Center. Launched via a Kuaizhou-1A carrier rocket, the satellites have entered their planned orbits and will primarily serve to provide commercial meteorological data services. This mission marks the 25th flight of the Kuaizhou-1A rockets and signals the commencement of China's space plans for 2024. Developed by China Space Sanjiang Group, the Kuaizhou 1A has proven its reliability, completing its third liftoff in two weeks. The Tianmu network, now with 22 deployed satellites, aims to conduct comprehensive measurements of oceans, atmosphere, and ionosphere globally, providing accurate weather data for meteorological authorities and industry users.
Beijing-Tianjin-Hebei sign action plan for Free Trade Pilot zone development: In a recent joint meeting held in Xiong'an New Area, Hebei Province, the Beijing-Tianjin-Hebei Free Trade Pilot Zone signed the "Beijing-Tianjin-Hebei Free Trade Zone Cooperative Development Action Plan." This plan outlines specific measures focused on promoting coordinated development through 16 initiatives across 5 major actions. The three regions will enhance customs clearance and facilitation through a customs supervision and cooperation mechanism. They will establish a Beijing-Tianjin-Hebei dry port cooperation mechanism, leverage Hebei's dry port advantages, and integrate resources across the three provinces and cities for land port cooperative development. Financial institutions in the pilot zone will strengthen ties, fostering the "Beijing-Tianjin-Hebei Credit Chain." Industrial integration and development cooperation will explore Bohai Bay water transportation organization and enhance regulatory data resource integration. Additionally, efforts will be directed towards constructing industrial cooperation platforms, technology market integration, and facilitating the flow of resources. The "1+5+18" collaborative innovation results include a report, five sub-field reports, and 18 innovation cases, showcasing achievements in trade investment, industrial development, logistics, government services, and factor flow. The comprehensive initiative aims to boost the cooperative development of the Beijing-Tianjin-Hebei Free Trade Pilot Zone.
China focuses on silver economy development to tackle population aging: In the first executive meeting of the State Council in 2024, the focus was on the silver economy, addressing the aging population's needs. Premier Li Qiang chaired the meeting, discussing policies to develop the silver economy, including the "Beijing-Tianjin-Hebei Free Trade Zone Cooperative Development Action Plan." The government emphasized using market mechanisms, engaging various entities, and enhancing basic livelihood security for the elderly. Decisions included the draft amendments to the Accounting Law and the Energy Law, along with the adoption of the Provisional Regulations on the Management of Carbon Emissions Trading. These measures align with the Central Economic Work Conference's goal to ensure the well-being of the aging population, emphasizing employment stability, social security improvements, and support for the silver economy. The silver economy is recognized as having significant potential, with projections indicating its substantial contribution to GDP by 2030 and 2050. The government aims to capitalize on this potential by addressing the urgent needs of the elderly in areas such as retirement, medical care, and health services. The overarching goal is to foster high-quality economic development and create a new phase of economic growth. The government emphasizes the role of the market and urges the full participation of civil forces in developing the aging industry. Strategic and policy arrangements are deemed necessary to bridge the current gap in China's aging industry, ensuring it meets the diverse needs of the elderly population. Policy documents in recent years have been issued to support the high-quality development of the silver economy, encompassing nursing institutions, elderly service systems, and health support systems. The government's focus on the silver economy is a proactive response to the structural transformation of supply and demand in an aging society, with an aim to inject new momentum into economic development.

SOCIAL MEDIA CHATTER IN CHINA

Dali, Yunnan, experiences tourism boom thanks to hit series 'Meet Yourself': The Chinese TV series "Meet Yourself" and subsequent government subsidy has become a catalyst for the popularity of Dali in Yunnan, evident from the Dali Bai Autonomous Prefecture's Culture and Tourism Bureau announcing a substantial subsidy of 2 million yuan ($282k) for the show. This financial support is part of the prefecture's special fund for cultural and tourism industry development, indicating official recognition of the series' impact on local tourism. With over 3 billion views on Mango TV, "Meet Yourself" triggered a surge in visitors during the 2023 Spring Festival holiday, contributing to Yunnan's impressive tourism revenue of 38.4 billion yuan (approximately US$5.4 billion). This success not only underscores the influential role of Chinese dramas in shaping travel preferences but also reflects the evolving strategies of travel destination promotions in the competitive post-Covid era.

INDIA WATCH

India stands at the cusp of a demographic shift as its elderly population grows, mirroring the trends observed in China's thriving 'silver economy.' The shifting population pyramid, driven by increased life expectancy, presents both challenges and avenues for innovation in India. The 'new' elderly in China, displaying a departure from traditional lifestyles, highlights changing consumption patterns and preferences. India can learn from China's experience, focusing on key sectors like eldercare services, medical devices and technology, lifestyle needs, and culture and entertainment. The Indian government has recognized the pressing need to address the challenges associated with the growing elderly population and has undertaken various initiatives to promote the "Silver Economy." With surveys like The Longitudinal Ageing Study of India (LASI) predicts that by 2050, India's senior population (aged 60 years or above) will soar to 319 million, the government has prioritized the development of a robust eldercare ecosystem. In response to recommendations from the Expert Group on the Silver Economy, the government has launched a program to support private businesses innovating in processes and products for the benefit of the elderly. One notable initiative is the "Senior Aging Growth Engine" (SAGE) project, which aims to identify and address the needs of senior citizens by providing tailored goods, solutions, and services. Additionally, the "SACRED" (Senior Able Citizens for Re-Employment in Dignity) project, focuses on facilitating re-employment opportunities for seniors. Several existing schemes contribute to the well-being of the elderly, such as the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, ensuring need-based maintenance, and the National Programme for the Health Care for the Elderly (NPHCE), emphasizing medical care provisions. Other initiatives include the Longitudinal Ageing Study of India (LASI), the Integrated Programme for Older Persons (IPOP), the Rashtriya Vayoshri Yojana (RVY), and various pension schemes like the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) and Varishtha Pension Bima Yojana (VPBY). Constitutional provisions and legal measures further reinforce the government's commitment to the welfare and dignity of the elderly. As India's silver economy burgeons, a wave of innovative start-ups has emerged, catering specifically to the needs and preferences of the senior population, constituting nearly 18 %of the total population. Seizing this opportunity, companies such as Senior World, Goodfellows, and GetSetUp have positioned themselves as pioneers in the senior-focused market. Goodfellows, founded in 2022 and backed by Ratan Tata, addresses the challenge of loneliness among seniors by facilitating inter-generational friendships. These start-ups exemplify the growing trend of tailored solutions for India's aging population, addressing not only practical needs but also the emotional well-being of seniors. As the silver economy continues to expand, such ventures are expected to play a pivotal role in enhancing the quality of life for India's seniors.

Prepared By

Riddhima Singh

Riddhima Singh is a final year student at Jawaharlal Nehru University Delhi, pursuing Chinese Honours course. Through her degree she has had the opportunity to dive into culture, history and contemporary issues in Chinese society through language and research. Her research area surrounds the economic and fiscal policies of Communist Party of China and China's development model.