IN FOCUS
By Avishka Ashok 

On 26 September, the State Council Information Office of China released a white paper on the country's economic journey to moderate prosperity. The paper is titled "China's Epic Journey from Poverty to Prosperity." The paper observes that the declaration of moderate prosperity in China in July 2021 brings the country closer to the Chinese goal of national rejuvenation. The paper says: "Achieving moderate prosperity fulfils a long-cherished dream of the Chinese nation." 

The paper praised the efforts of the Chinese Communist Party, which marked 100 years of its existence this year. The paper also applauded the Chinese people for their undying perseverance that helped the country rise from the state of impoverishment. It looked back upon the measures taken by China to provide overall development for all the people in China. The paper remarks that the country has achieved moderate prosperity in the field of sustainable and sound economic development, providing people's democracy, a thriving cultural sector, enhancing the people's standard of living and bringing positive changes to the eco-environment. According to the report, the Chinese administration successfully secured prosperity for each individual within the country and also ensured integrated and coordinated development across the urban cities and rural villages. 

The report claims of a steady growth in people's incomes. The average per capita disposable income in China increased from 171 yuan in 1978 to 32,189 yuan in 2020. The Engel coefficient in China also dropped from 57.5 per cent in 1978 to 29.2 per cent in 2020 in urban cities. A similar shift was noticed in rural areas where the coefficient dropped from 67.7 per cent in 1978 to 32.7 per cent in 2020. According to the Engel Coefficient, used by the United Nations to measure the standards of living, a figure above 59 per cent depicts poverty, within 50-59 per cent depicts a state where daily needs are met with, 40-50 per cent depicts a moderately well-off state, 30-40 per cent signifies a good standard of living and below 30 portrays a wealthy state. The report boasts of successfully and efficiently helping 99 million Chinese people rise out of a lower-income status, thereby making China an upper-middle-income country in 2020. 

An official from the National Development and Reform Commission (NDRC) emphasized the equal growth in development in Chinese cities and villages and said: "Building a moderately prosperous society in all respects means that all sectors, all people and all regions should benefit from it." China's subsistence-based way of life has led to the growth of consumption services such as catering, healthcare, education, tourism, culture and entertainment. These services now make up almost half of China's per capita consumer spending consumer spending. 

China now aims to achieve basic social modernization by 2035 and becoming a modern socialist state by 2050. The paper said: "The country will propel its unique modernization forward and make substantial progress in well-rounded human development and common prosperity."

References

"Full Text: China's Epic Journey from Poverty to Prosperity," China Global Television Network, 28 September 2021

"China's Epic Journey from Poverty to Prosperity," State Council Information Office of the People's Republic of China, September 2021

"People's lives notably improved: white paper," Xinhua Net, 28 September 2021

"China Focus: White paper documents China's journey towards moderate prosperity," Xinhua Net, 28 September 2021

"China: From Poverty to Prosperity," China Economic Net, 30 September 2021

IN BRIEF
By Juan Mary Joseph and Keerthana Nambiar

INTERNAL
China's manufacturing shrunk unexpectedly after power curbs
On 30 September, Reuters reported that China's factory activity shrank unexpectedly in September after high curbs on electricity use and input prices. Though services expanded after the COVID-19, the National Bureau of Statistics (NBS) reported that Purchasing Manager's Index (PMI) was at 49.6 compared to 50.1 in previous month, the first contraction after February 2020. (China manufacturing unexpectedly shrinks, services offer support, Reuters, 30 September 2021)

China defines new data measures
On 30 September, Reuters reported that China has published new draft measures as part of the new data security law, with definitions of ordinary data, important data, and core data. The authorities have defined a.) ordinary data as that with a minimal impact on society; b.) important data as that which poses a threat to China's national and economic interests; and c.) core data as that which poses a "serious threat" to China's national and economic interests. Disruption of important data could cause "major damage," leading to "large-scale shutdowns," or "large-scale network and service paralysis." (China drafts new data measures, defines "core data", Reuters, 30 September 2021)

China's amended mining law possibly surging the power crisis
On 30 September, South China Morning Post published an editorial on the power crisis in China. The current energy crisis is in line with the legal amendment which targets miners. In China's criminal law Article 134, in case of mining-related accidents and violations penalties have been elevated from fines to possible jail time. The law has created uncertainties among miners thus leading to a supply deficit amid a surge in energy demand. The deficit has affected China's power generation challenging the global supply chains steering towards economic growth. ("Was China's power crisis caused partly by an obscure mining law?", South China Morning Post, 30 September 2021; An Obscure Chinese Mining Law Is Hobbling Global Energy Security, Bloomberg, 30 September 2021)

People's Republic of China celebrates its 72nd anniversary
On 30 September, China's State Council celebrated the 72nd anniversary of the founding of the People's Republic of China at the Great Hall of the People in Beijing. President Xi Jinping and other important Chinese officials attended the reception where they focused on achievement and developments under the Communist Party of China (CPC). Premier Li Keqiang addressed the reception stating China's, "new quest to fully build a modern socialist country". He focused on China's economic performance, development, lifestyle, scientific and technological innovations. The premier stressed upon the reforms of "opening-up" as China's fundamental policy, reforms towards socialist market policy along with measures to create more jobs and opportunities, encourage innovation and entrepreneurship across China. He concluded his note by calling out to build "China into a great modern socialist country and realize the Chinese Dream of national rejuvenation." ("China Focus: China's State Council holds National Day reception", XinhuaNet, 1 October 2021)

"Chinese need to pay close attention" with regard to population decline, warns new study- South China Morning Post 
On 30 September, South China Morning Post published an article on the population decline in China according to a new study by Professor Jiang Quanbao and colleagues with the institute for population and development studies at Xian Jiaotong University. The new study warns of China's population decline which is expected to be faster within the span of 45 years and the Chinese authorities "need to pay close attention to the potential negative inertia of population growth and make a plan with countermeasures in advance". The predictions are based on the birth rate of 1.3 children per woman in 2020 and a dramatic decline is forecasted than previous estimates. The study also mentions how pandemic may have affected the childbirth last year and chances for a rebound are relatively low. The researchers mentioned it was the first time China has more senior citizens than young people they further added that "if the fertility rate drops to 1, in 29 years the population in our country will fall by half." ("China's population could halve within the next 45 years, new study warns", South China Morning Post, 30 September 2021)

REGIONAL
Access to online museum censored in Hong Kong
On 30 September, Reuters reported that an online website dedicated to the victims of China's 1989 Tiananmen Square crackdown appears censored in Hong Kong. The website, opened last month by the Hong Kong Alliance in Support of Patriotic Democratic Movements of China, operates independently from the Alliance. (Access to website dedicated to Tiananmen victims appears restricted in Hong Kong, Reuters, 30 September 2021)

INTERNATIONAL RELATIONS
China opposes Philippines' move to review the Mutual Defense Treaty
On 30 September, Reuters reported that Philippines' Defence Secretary Delfin Lorenzana was urged by China against the former's push to review its 70-year-old Mutual Defense Treaty (MDT) with the US. Philippines wants to amend the 1951 treaty to clarify the extent to which the US would protect and defend it, should it be under attack. (Philippines defence chief says was urged by China to drop review of US pact, Reuters, 30 September 2021)

US-China defence officials discussed "serious issues"
On 30 September, the Defence officials from China and US concluded the two-day high-level video conference discussing "serious issues" on improving defence ties between both countries. This is the second round of talks after Joe Biden took over the office. The Chinese defence ministry spokesperson said, "The military relationship has faced many challenges, but our militaries have maintained communication throughout." The US Department of Defence stated that the new alterations were part of Biden's efforts to "responsibly manage the competition" between both the countries by "maintaining open lines of communication" with China. ("Chinese military urges US to 'correct mistakes' to improve defence ties", South China Morning Post, 30 September 2021; "US, Chinese military officials hold 'frank, in-depth' talks -Pentagon", Reuters, 30 September 2021)