SwedCham China Insights for the Week of March 11 - March 15 , 2024

Top news of the week:

China’s consumer prices rise for first time in six months

March 11, 2024

China’s consumer prices rose for the first time in six months. The consumer price index (CPI) climbed 0.7% year-on-year in February, data from the National Bureau of Statistics (NBS) showed.

Premier Li Qiang chairs State Council executive meeting

March 12, 2024

Premier Li Qiang presided over a State Council executive meeting on March 12. The meeting deliberated and approved arrangements for the State Council’s key 2024 tasks, as well as guidelines for the expansion of China’s grain output and the facilitation of high-quality economic growth through the upgrading of standards.

China to promote equipment renewals, trade-ins of consumer goods

March 13, 2024

China has released an action plan to promote the large-scale renewal of equipment and the trading-in of consumer goods. The action plan, issued by the State Council, is aimed at bringing more high-quality durable consumer goods into people's lives, smoothing the recycling chain of resources, and significantly improving the quality and level of economic circulation.

Premier Li Qiang says AI vital engine for new quality productive forces

March 14, 2024

On March 13, Premier Li Qiang said that artificial intelligence (AI) is an important engine for developing new quality productive forces as he inspected technology organizations in Beijing.

China to remove the threshold for foreign investment in the manufacturing sector

March 15, 2024

The Ministry of Commerce (MOFCOM) and the National Development and Reform Commission (NDRC) will work with relevant departments to accelerate the revision of the negative list for foreign investment in China, and remove restrictions on foreign investment in the manufacturing sector, according to a spokesperson from MOFCOM.

Insight of the week:

On March 13, a deadly suspected gas explosion ripped through a residential neighbourhood in northern China, leaving a scene of devastation. The powerful blast occurred at a four-floor complex in a residential area of Sanhe City, Hebei province, a de facto satellite city of the capital Beijing. The force ripped off the fronts of several buildings, crumpled cars on surrounding streets and left large pieces of debris on fire. As of March 14, the massive explosion left 7 dead and 27 injured, according to a government statement. Officials said that 14 people had been discharged from the hospital.

On March 13, authorities “basically determined” the explosion was caused by a gas leak, though they have not identified the specific cause or location of the blast. Social media posts on Weibo said the explosion occurred near a cultural center in the town. Construction of a metro line was taking place nearby, Chinese weekly the Economic Observer posted on its social media account. A preliminary investigation has concluded that a gas pipeline leak was the likely cause, according to Liu Fulai, head of the investigation team. In recent years, there have been frequent explosion accidents in Yanjiao, Sanhe City. According to public reports, three explosions or blasting accidents have occurred in the past three years, all resulting in casualties.

The incident later became a government reputation crisis. Reporters with Chinese state media were forcibly removed by local authorities from the deadly blast scene, raising rare controversy over the country’s press restrictions. On March 13, a journalist with state broadcaster CCTV was interrupted while reporting live from the scene following the explosion. The reporter was seen surrounded by several police officers in uniform who blocked the camera and shouted about potential danger at the scene, according to a video that circulated online. The video of the report was no longer available on CCTV’s website as of March 14. In another video, reporters were seen surrounded by a group of uniformed police officers telling them to leave the scene. A reporter with China Media Group, of which CCTV is a division, was heard saying “we three reporters are shoved by a dozen people”. The incident sparked controversy and became a trending topic on social media platforms. The All China Journalists’ Association, a semi-official association, called on authorities to make it easier for journalists to conduct on-site interviews when reporting on emergencies. Authorities should not “simply and brutally obstruct journalists in the normal performance of their duties for the sake of controlling public opinion”, the association said. On March 14, local authorities in Sanhe issued a statement saying they were “deeply remorseful” and apologized to the journalists. At a special meeting held on the same day, Hebei Provincial Party chief called on local authorities to embrace public oversight and support reporters’ right to make inquiries.