China has strengthened the protection of intellectual property rights (IPRs) and stepped up efforts to crack down on crimes such as infringement and counterfeiting. In the first three months of this year, police nationwide resolved more than 3,800 cases of IPR infringement and counterfeiting, arresting about 8,200 suspects, according to the Ministry of Public Security (MPS). From 2016 to 2020, police across the country cracked more than 90,000 such cases, involving about CNY47 billion. More than 130,000 suspects were arrested. Prior to World Intellectual Property Day on April 26, the national leading group of fighting IPR infringements and counterfeits destroyed CNY700 million worth of infringing and counterfeit commodities in 16 provincial-level regions in the country. Lyu Wuqin, Director of the Ministry’s Food and Drug Crime Investigation Bureau, said IPR infringement and counterfeits disrupt market order, endanger people’s health and vital interests, and also impede scientific and technological progress. “Public security authorities are treating the legitimate rights and interests of all domestic and foreign enterprises in an equal manner, and have received letters of gratitude from many enterprises,” he said.

During last year’s Kunlun 2020 – an operation launched in May targeting IPR infringement and counterfeiting – about  25% of the clues to resolve 21,000 cases were provided by industrial regulators and administrative departments. Last week the MPS launched a new Kunlun 2021 operation to target infringement in fields including food and drugs, children’s products, copyrights, technological innovations and business secrets. Li Jiantao, Deputy Director of the Bureau, said the number of infringement cases is still large and they cover a wider range. Such illegal activities have gradually moved online and are better-organized with clear divisions of labor, he said. 

In a typical case, police in Zhejiang province resolved a case of infringement of film and television copyright in February. The 19 suspects were accused of recording and spreading several movies shown during China’s Spring Festival. The suspects recorded the movies in the theater,  showing them in their movie bars to earn profits, or contacted buyers through social media platforms and sold the films, according to the police. At the invitation of Interpol, Chinese police have also participated in a number of joint international law enforcement operations, the China Daily reports.

Tsinghua University, one of China’s top universities, established the School of Integrated Circuits, the nation’s first, to target the research and training of technicians in semiconductors. The school aims to help the country resolve bottlenecks created by the U.S. restricting the export of high-tech products to China. Tsinghua University’s integrated circuits school will be the first in China to offer a specialized major in the subject. The school will focus on developing top-level research talent, and it will eventually offer Master’s degrees and PhDs, Qiu Yong, Principal of Tsinghua University, said at the school’s inauguration ceremony on April 22. The school aims to train high-level innovative technicians who are urgently needed in China to help to develop semiconductor manufacturing. The school will pursue breakthroughs in memory, processors, electronic design automation and semiconductor equipment, and commercialize its fundamental research, Chi Baoyong, Professor at the new school, said. 

The integrated circuit is at the heart of all information technology industries, which have long relied on the West in some advanced areas. Given its great significance, the sector has become a target for the U.S. in its bullying of Chinese firms, the Global Times reports. China is lacking around 200,000 chip-related experts a year. “There were few schools, universities or even majors in the subject in China before the founding of Tsinghua University’s school,” Xiang Ligang, Director General of the Beijing-based Information Consumption Alliance, told the Global Times. Xiang said that chip-making requires experts in both design and manufacturing. “Computer engineers can take charge of the design process, while electrical engineers handle manufacturing.” 

Tsinghua University is the country’s premium talent development base for the semiconductor sector, with more than 7,500 graduates since the establishment of its integrated circuits major in 1956. It is hoped that with the establishment of this school, the shortage of chips and technical problems can be alleviated. Jointly established by the Department of Microelectronics and Nano-electronics and the Department of Electronic Engineering of Tsinghua University, the new school will provide courses for students who major in related sectors including microelectronics and software engineering. More schools of this type are likely to be established as China goes full speed ahead in its industrial upgrade, the Global Times reports. 

With China’s rapid urbanization, more people are flowing into urban areas. According to official data, a total of 93 cities have an urban population of 1 million – four  times the number 40 years ago. As the second and third biggest provinces in terms of GDP, Jiangsu and Shandong provinces, each have 10 cities with more than 1 million people. But compared with Jiangsu, no city in Shandong has 6 million. Guangdong, the province with the largest economy, ranks third with eight cities of 1 million inhabitants each. Seven of them are in the Pearl River Delta, the largest urban area in the world in both size and population, according to the World Bank. There are currently six megacities with an urban population of more than 10 million, 10 large cities with an urban population between 5 and 10 million, and 14 cities with a population between 3 and 5 million. By the end of 2019, China’s urbanization rate was 60%, the Shanghai Daily reports. 

Industrial production in China has returned to pre-Covid-19 levels, the Ministry of Industry and Information Technology (MIIT) said. In the first quarter, the utilization rate of industrial capacity in the nation reached 77.2%, the highest for the same period since 2013. Industrial output increased 24.5% on a yearly basis in the first quarter, while profits of industrial enterprises jumped 1.79 times on a yearly basis in January and February. In the first quarter, 40 of the 41 major industrial sectors achieved year-on-year growth. 

Central China’s Hubei province, hit hard by the Covid-19 outbreak in early 2020, reported first-quarter GDP growth of 58.3% to CNY987.27 billion. The secondary sector expanded 88.9% year-on-year, while the services sector grew by 45.7%. Primary industry, which didn’t grow at all last year, expanded 24.9% in the first quarter of this year. Hubei’s economy contracted by 39.2% in the first quarter of 2020, mostly due to a 76-day strict lockdown that paralyzed local businesses. Almost every sector except mining, natural gas and oil shrank in the first quarter last year. For all of 2020, Hubei’s economy contracted 5% to CNY4.34 trillion. In the first quarter of 2021, Hubei’s retail sales rose 62.7%  to reach CNY478.28 billion, compared with a 44.9% drop in the first quarter of last year. 

The Chinese economy as a whole recorded an 18.3% expansion in the first quarter. The economy is expected to grow by roughly 9% for the whole year, well above the official goal of more than 6%, experts said. China’s auto sales reached almost 6.5 million units in the first quarter of 2021, an increase of more than 75% year-on-year, according to the China Association of Automobile Manufacturers (CAAM).

Pudong New Area, the reform and opening-up showpiece in Shanghai, is expected to be a major hub for technology innovation and further opening-up, local officials said. An advanced manufacturing industrial cluster featuring six major industries will lead the future development of Pudong, according to a plan. A complete chipmaking industrial chain, which will be globally competitive, shall be set up in Pudong, with annual output reaching CNY350 billion by 2025. Output of innovative drugs is expected to reach CNY200 billion by 2025 while that of the domestic commercial civil aviation industry will reach CNY50 billion. An industrial cluster led by new energy vehicles (NEVs) will be established in Pudong with annual output reaching CNY150 billion in the next five years. Annual output of smart manufacturing will reach CNY220 billion by 2025, while information service providers in Pudong are expected to attain a total income of CNY600 billion in 2025. 

By the end of 2025, Pudong is expected to be home to more than 8,000 high-tech companies, according to the plan. To better nurture entrepreneurship, there will be 200 incubators in Pudong in 2025. A technology investment system will be established, including funds of funds, venture capital firms and banks so that more Pudong-based technology companies can go public. “Major breakthroughs in fundamental research, core technologies, product innovation and initial application of products can be expected in Pudong in the next few years. We will also see more high-end innovation resources, the commercialization of innovation results, a vibrant innovation and entrepreneurship ecosystem, and close integration of technological innovation industries,” said Zhou Zhengyu, Deputy Director of Pudong’s Technology and Economic Committee. 

High-level opening-up will be another feature in Pudong’s development over the next five years to help Pudong gain a more competitive edge in the global market. The financial industry will also play a key role. Up to 1,250 financial institutions with banking or securities licenses will operate in Pudong by 2025, accounting for two-thirds of the city’s total. The region will also be home to 150 international asset management firms and 15 leading fintech companies. During the 14^th Five Year Plan period (2021-25), Pudong will account for 60% of Shanghai’s total import and export value, the China Daily reports. 

Construction of the Free Trade Port (FTP) in Hainan got a new impetus after companies signed agreements for 104 projects, involving CNY65.72 billion in total investment and covering tourism, modern services and high-tech industries. Of the 104 projects, 22 are foreign-funded. Previously, the FTP had seen the signing of 741 projects with an investment of CNY519.6 billion in multiple areas including intelligent manufacturing, international shipping, education, medical care and aerospace. China proposed setting up a free trade zone in Hainan in 2018 and began construction of the Hainan FTP last year. Over the past three years, a number of foreign companies have settled in Hainan, including Harrow School from Britain, U.S. electric automaker Tesla and tourism company TUI Group. Cambodia Angkor Air signed an agreement to operate 10 planes in Haikou and establish a base there. David Zhan, Board Director of the company, said they hoped to benefit from “Seventh Freedom of the Air” rights and fly from Haikou to major cities in Northeast Asia, Russia and ASEAN. The Hainan FTP last year began to trial Seventh Freedom of the Air rights, which allows foreign carriers to operate flights between two foreign countries without the need to touch down in the airline’s home country.

Despite the negative impact of the Covid-19 pandemic, the Hainan FTP has forged ahead with a steady inflow of investment. Last year, Hainan launched 538 projects involving investment of CNY172.5 billion. The province also unveiled 11 key industrial parks in June last year, where favorable FTP policies have been implemented to attract investment projects. Over 20,000 new enterprises were registered in these industrial parks last year. In 2020, 1,005 overseas-funded enterprises set up operations in Hainan, up 197.3% from the previous year. The booming duty-free shopping sector is another attraction for global brands wishing to explore China’s huge market. After 2025, the entire island could become duty-free. The first China International Consumer Products Expo, scheduled for Haikou in May, has attracted more than 1,100 international brands, including L’Oreal, Shiseido and Tesla. “With the expo, Hainan will become the largest luxury consumption center in China and even the  world,” said Chi Fulin, President of the Hainan-based China Institute for Reform and Development. Starting on July 1, 2020, Hainan increased its annual tax-free shopping quota from CNY30,000 to CNY100,000 per person. The categories of duty-free goods have been expanded from 38 to 45, with electronic products such as mobile phones and laptops added to the duty-free list. There are now nine duty-free shops in Hainan, the China Daily reports.