China Holds Politburo Meeting on Economy, Anti-Corruption Moves; Xi Pledges Stronger Fiscal Policy to Boost Domestic Demand
Post-summit news conferences highlight the divide between China and the EU; China's tightening grip on AI puts other nations at risk
Welcome to this issue of The China Brief. Today is December 8, 2023. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.
China Holds Politburo Meeting on Economy, Anti-Corruption Moves
Yahoo US
China’s top 24 Communist Party leaders met to discuss economic policies for 2024 and anti-corruption measures, chaired by President Xi Jinping. Economists are looking for signs that policy makers will be more aggressive with their growth goal for the year. China’s official growth goal of around 5% for 2023 is widely seen as achievable. However, many analysts saw the target as conservative when it was set earlier this year.
China to spur domestic demand, economic recovery in 2024 - state media
Reuters
China's ruling Communist Party has said it will stimulate domestic demand and consolidate the economic recovery in 2024, according to state media. The government has recently introduced a series of measures to support a weak post-pandemic economic recovery. Ratings agency Moody's warned on Tuesday that bailing out debt-laden local governments and state firms, as well as controlling the property crisis, would weigh on the growth outlook of the country. Most analysts believe China's growth is on track to hit the government's target of around 5% this year, but that compares with a Covid-weakened 2022 and activity remains uneven.
China Pledges Stronger Fiscal Policy to Boost Domestic Demand
Bloomberg
China's Politburo has pledged to strengthen the government's fiscal policy to boost domestic demand and implement a flexible and targeted monetary policy. The meeting, chaired by President Xi Jinping, stated that fiscal policy will be stepped up "appropriately" and monetary policy should be flexible, appropriate, targeted, and effective. Economists are looking for signs that policymakers will become more aggressive with their growth goal for 2024. China's official growth goal of around 5% for 2023 is seen as achievable but conservative. The country's economy faces challenges, including a deepening property crisis, strained local government finances, and record-low consumer confidence. Authorities have recently offered more stimulus, raising expectations that fiscal support will be key in 2024.
Merck Navigates Chip Geopolitics With ‘China For China’ Strategy
Bloomberg
Merck KGaA has stated that it can navigate rising geopolitical tensions between the US and China with its "China for China" strategy. The German company, which supplies specialty materials for semiconductor manufacturing, follows its customers wherever they go and has adopted the strategy to meet surging demand for LCD panels in China. Merck's CEO, Kai Beckmann, also highlighted the company's data-sharing platform, Athinia, as a tool for adding resilience to the chip supply chain. The platform allows member companies to share data and create models to simulate production and evaluate the suitability of alternative materials in the event of supply shortages.
Post-summit news conferences highlight the divide between China and the EU
Yahoo US
China and the European Union (EU) have expressed differing views on a range of issues at a summit in Beijing this week. China, which sees Europe as an important export market, expressed concerns about trade protectionism and the EU’s initiative to reduce reliance on China for raw materials. Separately, the EU, which sees Chinese imports as a potential threat, pressed China on its large trade surplus with Europe and its support for Russia in the Ukraine conflict. The leaders also disagreed on human rights and Taiwan.
China's tightening grip on AI puts other nations at risk
Nikkei Asia
China's AI regulations and policies are focused on ensuring that the technology serves the goals of the Chinese Communist Party and can be monitored by the party. President Xi Jinping has emphasized the importance of AI as a tool for governance and shaping global public opinion. Regulations in China require algorithms to promote "mainstream values" and "positive energy," and these regulations are likely to be applied to emerging AI technologies. China's AI industry is effectively nationalized, and the regulations prioritize social control and the projection of power rather than consumer protection. The country's dominance in AI research raises concerns about national security and the potential for AI-driven manipulation.
Tesla’s China Sales Rise as Orders Flow In to Beat Price Rises
Bloomberg
Tesla's Chinese deliveries increased in November as customers rushed to place orders before the company raised prices on its electric vehicles. China deliveries totaled 65,504 EVs, a 5% increase from November 2022. Tesla has been regularly adjusting prices in China, which has incentivized customers to place orders before prices go up. The company's Shanghai factory, which accounts for more than half of its global output, delivered 82,432 EVs in total, representing an 18% drop from a year earlier. Shenzhen-based BYD Co. sold a record 170,150 fully electric vehicles last month, potentially overtaking Tesla in global EV deliveries.
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