CiCM 6th February 2024

NEWS IN CHINA

China-US Economic Working Group held third meeting in Beijing: From February 5th to 6th, the China-US Economic Working Group held its third meeting in Beijing. Co-chaired by the Chinese Vice-Minister of Finance Liao Min and his American counterpart US Under Secretary of Treasury Sham Bo, the meeting focused on increasing cooperation between the two sides, especially on questions of macroeconomic policies in their respective states. The Chinese contingent also raised concerns about the American sanctions placed on Chinese companies, which they perceive to be aimed at “supressing” said companies. Other concerns raised were regarding increased tariffs and the two-way investment restrictions.
Steady increase in “little giant” firms in the Liuyang High-Tech Zone shows further promise for Chinese industrial production: The Liuyang High-Tech Zone has reported an incredible 4.8 percent year-on-year growth in the total industrial value, currently peaking at 74.33 billion yuan. This success is due to both increased efficiency in the existing firms as well as the rise of national-level and provincial-level “little giant” firms operating in the area. 3 national-level firms have expanded to Liuyang, while over 34 provincial-level “little giants” claim to be active in the industrial production in the area.
Purchase restriction policy in Tongzhou's property market amended by Beijing: The Beijing Municipal Housing and Urban-Rural Development Commission and the Tongzhou District Government have amended the existing housing purchase restriction policy. The previous policy set strict categorisation of four types of families which were allowed to purchase a house, that too after certain restrictions. These family types were described as Beijing-based households not owning a house, Beijing-registered households owning a house and are registered in Tongzhou, Beijing-registered families who already own a house in the city and whose household registration is not in Tongzhou District but work in Tongzhou District and finally, non-Beijing based families which do not have a house in Beijing. Previous restrictions required all the households to meet the required Beijing purchase restriction policy and the last three households also needed to prove a residential/occupational relation in Tongzhou for atleast three years. The changed policy allows all four types of families qualified to purchase a house to bypass the “double restrictions” imposed by the Beijing and Tongzhou administrations. The three-year domicile requirement for settlement, social security or tax payment has been cancelled in the Tongzhou district real estate market. This is expected to bring a large skilled labour population to the district and expand development of Tongzhou as a sub-centre in Beijing.
China and Brazil announce a 10-year visa treatment: China and Brazil agreed to grant 10-year visa treatment for their nationals for business, leisure trips and family visits, starting from February 29, 2024. The move is expected to promote China-Brazil economic cooperation and business activities and expand the scope of Chinese and Brazilian businesses in the other country. The decision comes after the China-Brazil Foreign Ministerial-Level Comprehensive Strategic Dialogue in Brasilia, Brazil, on January 19, 2024. Although there are restrictions on visiting periods, the 10-year visa allows for multiple entries over the validity period. This move benefits the Brazilian tourism industry, which has seen a steady decline in the number of Chinese tourists visiting their country.
AI Governance Index developed by Chinese researchers: Researchers from different centres of the Institute of Automation under the Chinese Academy of Sciences have developed the ‘AI Governance International Evaluation Index’ (AGILE). The team, led by Professor Zeng Yi, created the index to study the level of governance in AI in 14 countries, including G7 members, BRICS members (before the 2023 expansion) as well as Singapore and the United Arab Emirates. The index reveals high-income states to be more advanced with regards to governance tools and AI development, while lower- to middle-income states are generally more efficient in their efforts for AI governance. The index also proves that per capita GDP and AI development in the country is directly correlated to the level of governance of AI. The findings of the quantitative study done through the index reveals countries focusing on collaborative efforts for AI governance to do well, namely China and the US. In fact, the index shows China and the US to do well in governance as well as development of AI.

SOCIAL MEDIA CHATTER IN CHINA

Minor car accident snowballs into coordinated online cyberbullying and trolling: An incident involving a passenger of a black Mercedez-Benz went viral on Chinese social media for physically smashing the hood of another car driven by an elderly woman whose granddaughter posted the video, and creating a public nuisance at a ferry terminal in Zhanjiang. The altercation was triggered by a dispute over line-cutting. The elderly woman, popularised by her reaction to the angry outburst against her, was found at fault after the video of the accident was leaked. The incident led to a ‘war of words’ online between people from different socio-economic strata. This led to active cyberbullying of the people identified and their alleged place of work, the Heibei Agricultural University. Many negative and unwarranted comments were also made on Heibei’s cultural tourism industry. As the conversation online turned toxic, many netizens started questioning the morality of the people cyberbullying the man and the tourism department of Hebei.
Chinese consumers show different preferences in tourism trends: Chinese tourists’ behaviour towards their vacation planning has been influenced by new travel trends that frequently emerged in Chinese media in 2023, and have been substantiated by the social media engagement by netizens following the trends. These online trends have materialised in tourism patterns followed by different socio-economic classes. Trends emerging in late 2023 such as ‘city walks’ have been coopted by older netizens for a more immersive experience. More recently, quick and crammed vacations have become the trend. ‘Special-forces style travel’ is a popularised social media term for the aforementioned trend preferred by younger netizens, preferring to visit multiple famous tourist attractions in multiple cities. Many cities have promoted relevant destinations for micro-vacations to stimulate local tourism after noticing the rise in this trend.

INDIA WATCH

The Indian tourism industry requires a more informed boost, especially considering the dependence of certain states and a large percentage of population on the tourism industry, as well as the administration’s interest in improving tourism numbers in the country. The Union government has undertaken several measures to boost tourism in India, especially financial measures detailed in the Union Budget 2024. The budget offers state governments interest-free long-term loans for improving infrastructure and enabling developmental projects to enhance the tourism industry in the state. Furthermore, the budget allocates resources to the island territories for developmental projects, and also allocates a large budget to revamp the railway system in the country, thus alleviating the tourism industry by offering better connectivity within the country. A netnographic approach can help state governments and other regional administrations identify popular tourist spots as well as the tourism trends across the country and the world, and specifically allocate their increased financial resources to such areas for further development.

Prepared By

Parth Prasad

Parth Prasad is a second-year undergraduate student pursuing International Relations and Public Policy. His interests lie in international economics, diplomacy studies as well as Indian foreign policy analysis. His interests and area of research often brings him on Indo-Sino relations, thus igniting his interest in understanding Chinese polity.