SwedCham China Insights for the Week of January 3 - January 5 , 2024

Top news of the week:

China to roll out further measures to support private economy: top economic planner

January 3, 2024

China will take pragmatic measures in six areas, including accelerating the legislation process for the private economy promotion law, to assist with the development of the private economy, according to Zheng Shanjie, head of the National Development and Reform Commission, at a themed conference on the private economy's high-quality development, held in Fujian Province.

China’s latest AI restrictions target scientific research

January 4, 2024

China’s Ministry of Science and Technology has banned the use of generative artificial intelligence (AI) to “directly generate” research project applications in newly released guidelines that aim to better regulate the rapidly evolving technology and its potential threat to scientific integrity. Researchers are also prohibited from listing generative AI tools as co-authors of scientific papers and from directly using unverified references generated by AI.

Premier Li Qiang visits US-blacklisted chipmaker and calls for technology innovation

January 5, 2024

Premier Li Qiang visited China’s foremost developer of memory chips, in the latest show of government support for US-sanctioned Yangtze Memory Technologies Co. (YMTC).  In addition to YMTC, he visited Wuhan Huagong Laser Engineering Co. during a two-day trip in Hubei Province. He called for further efforts on technology innovations and more targeted policy support to translate research results into real productivity.

Insight of the week:

During the New Year long weekend, China saw a consumer market boom with bustling travel and spending activities across the country. During the three-day holiday, a total of 135 million domestic tourist trips were made, up 155.3 percent year-on-year, and total domestic tourism revenue reached 79.73 billion yuan, jumping 200.7 percent from the same period in 2023 and 5.6 percent from 2019 before the pandemic, according to data from the Ministry of Culture and Tourism on January 1. The cross-border travel market also thrived during the holiday. About 5.18 million border crossings were made across the Chinese mainland, posting a near fivefold increase from a year ago, according to the National Immigration Administration. Bookings for overseas trips soared 388 percent on Ctrip, one of the largest online travel agencies in China. Meanwhile, China’s box office racked up a record high revenue of approximately 1.53 billion yuan, according to the China Film Administration. This figure has surpassed the previous record of 1.3 billion yuan in 2021.

Another eye-catching topic related to consumption stimulation in China is the adjustment of the fireworks bans. Recently, the Legislative Affairs Commission of the National People’s Congress (NPC) Standing Committee, China’s top legislature, has stated that certain provisions in regional regulations, including the complete ban on fireworks and firecrackers, have no legal basis. Local authorities are required to rectify these regulations accordingly. In an unusually frank response, lawmakers said air pollution prevention laws and fire safety regulations have led to “differences in understanding” of the ban on fireworks, which was never absolute. The loosening of the firecracker bans sparked intense debates. Opinions varied, with some asserting their right to fireworks, while others argued that the bans were crucial for environmental protection. In an online poll by Beijing Youth Daily, over 80% of respondents expressed support for fireworks during the Chinese New Year, a traditional period of high demand for fireworks and firecrackers. Analysts believe the authority is diligently implementing policies to stimulate consumption and adopting measures to alleviate negative sentiments among the populace, thereby revitalizing society for continued economic development.