China

2022 - 4 - 25

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Image courtesy of "FRANCE 24"

China's pursuit of zero Covid driving expats away (FRANCE 24)

Colin Chan spent more than a decade building a life in China, but enduring ever-changing Covid rules and five weeks of quarantine convinced the Singaporean ...

"This is also having an unfortunate impact on China's image to the rest of the world." In a recent letter to China's State Council seen by AFP, the European Chamber warned that Omicron poses challenges that seemingly cannot be overcome with "the old toolbox of mass testing and isolation". One longtime British resident in Shanghai told AFP they planned to repatriate over worries that the latest lockdown marked the beginning of a "really crazy direction" in virus policies. More than a third of the firms surveyed by the American Chamber in March said their foreign staff had been reduced by at least 10 percent because of Covid curbs since the beginning of the pandemic. And the British Chamber said Wednesday that business risk was "at the highest level seen since 2020" when the virus was spreading rapidly in China during the early phase of the pandemic. China's strategy of snap lockdowns, strict travel curbs and lengthy quarantines largely kept the virus at bay in the first two years of the Covid crisis, and allowed people to maintain a semblance of normal life.

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Image courtesy of "CNN"

Is China still a good investment amid Covid and Russia's war? - CNN (CNN)

Investors are ditching China on an unprecedented scale as a cocktail of political and business risks, and rising interest rates elsewhere, make the world's ...

It has also made port delays worse and forced the suspension of many passenger flights, sending air freight rates soaring and putting even more pressure on global supply chains. A lot of the country's current economic pain can be traced back to the sweeping regulatory crackdown on the private sector, which was unleashed by President Xi Jinping in 2020. The Nasdaq Composite also surged 8% in the final quarter of 2021. It then shed another 14% in the final quarter of last year. The International Monetary Fund on Tuesday cut its growth forecast for China to 4.4%, down from 4.8%, citing risks from Beijing's strict zero Covid policy. Data from the Chinese government also showed a record bond-market retreat by foreign investors in recent months. By comparison, the S&P 500 rose 0.2% and 11% respectively in the third and fourth quarters of last year. But geopolitical tension is not the only reason behind the exodus. This is well below China's official forecast of around 5.5%. There are fears that the government will continue to clampdown on sectors ranging from education to technology this year. to bolster its faltering economy. That was before Russia invaded Ukraine

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Image courtesy of "Bloomberg"

China's Spreading Outbreak Stokes Fear of Beijing Lockdown (Bloomberg)

China's coronavirus outbreak worsened as rising cases in Beijing sparked jitters about an unprecedented lockdown of the capital, with policy makers racing ...

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Image courtesy of "CNN"

'Voices of April': China's internet erupts in protest against censorship ... (CNN)

The shouts of locked-down residents demanding basic necessities, the cries of babies separated from their parents in quarantine, the pleas of a son ...

In Beijing, residents rushed to buy groceries on Sunday evening amid a fresh coronavirus outbreak that officials described as "urgent and grim." Photos and videos shared online show long lines and empty shelves at Beijing supermarkets and "sold out" signs on grocery-delivery apps. Censors struggled to keep up -- no sooner would they block one version of the video did another resurface, and the mouse and cat game continued into the small hours of Saturday. On Saturday, Chinese social media was flooded with photos of workers in white hazmat suits installing green fences outside apartment buildings in Shanghai. An online backlash ensued, with users joining a social media relay in defiance, sharing the video in whatever way they can come up with to evade censors. Censors quickly stepped in, taking down the film as well as any references to it from China's internet.

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Image courtesy of "The New York Times"

China's Covid Lockdowns Stir Memories of a Planned Economy (The New York Times)

China is meddling with free enterprise as it hasn't in decades. The results are familiar to those old enough to remember: scarcity, and the rise of black ...

He told me that he borrowed money from relatives and friends to pay the loans this month. This joint propaganda has undercut Western efforts to isolate Russia diplomatically and has found a receptive audience in the Middle East, Africa and Latin America. But they must follow a set of complicated and expensive pandemic-control measures, including creating what’s called a closed-loop management system in which workers live on-site and test regularly for the virus. The state media, provincial party secretaries and lower-level government officials all know who is in charge and are eager to show their loyalty. Besides the troubling ghost of a planned economy, the business community is also facing conflicting messages from the government. The approach has a strong element of a planned economy, in which the government controls business activities, rather than letting the market regulate supply and demand. On the black market, some operators are willing to pay $2,000 for a day pass. During the outbreak, the Shanghai government upended the commercial systems and tried to provide for 25 million people on its own. As much of the world is opening up, the country is doubling down on its zero Covid policy, making low death and infection rates central to its legitimacy. Back then, the government’s digital surveillance systems to limit the movements of vehicles and people were less extensive. Then the Omicron variant started spreading in China. In the government’s zealous pursuit of its “ zero Covid” policy, dozens of cities along the 1,300 miles of highway between the capital, Beijing, and the southern province of Guangdong, his main freight route, imposed travel restrictions and lockdowns. He worked as a farmer and a construction worker before joining the country’s nascent logistics industry.

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Image courtesy of "BBC News"

Beijing kicks off mass testing after spike in Covid cases (BBC News)

Dozens of cases were reported, sparking fears that Beijing could face a similar situation to Shanghai.

You can also get in touch in the following ways: Another Weibo user in Shanghai said: "Seeing people in Beijing rush to buy food is both funny and distressing… In contrast to many other countries, China is pursuing a zero-Covid strategy with the aim of eradicating the virus from the country completely. Separately, Pang Xinghuo, deputy director of the Beijing Center for Disease Prevention and Control, told state-media outlet China Daily that the number of cases in Beijing is expected to increase in the following days. Some in locked-down areas of Shanghai say they have been struggling to access food supplies, and forced to wait for government drop-offs of vegetables, meat and eggs. The Chinese capital Beijing has kicked off mass testing for millions of residents after a spike in Covid cases.

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Image courtesy of "Buzz.ie"

Panic buying in Beijing as China's capital fears Shanghai-style ... (Buzz.ie)

Beijing has ordered three rounds of mass testing prompting fears of a lockdown which triggered panic buying across the Chinese capital.

Food prices have skyrocketed in Shanghai and stocks remain low in many shops, with no end of the lockdown in sight. China's financial hub is closing in on its first month of a severe lockdown. Although Beijing has reported far fewer cases of Covid-19 compared with Shanghai, the news that mass testing will be conducted in the capital sparked fears that a lockdown could be introduced, similar to the one in Shanghai. The financial hub has been in lockdown for weeks as it battles the coronavirus with a strict lockdown in accordance with China's zero-Covid policy.

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Image courtesy of "NBC News"

The Chinese government is hunting down Uyghurs around the world ... (NBC News)

China is hunting Uyghurs around the world, with help from some surprising countries ... More than 1,500 Uyghurs have been detained, extradited or rendered, most ...

In a statement to NBC News, an Interpol spokesperson said that a “specialized task force” reviews every red notice request to ensure compliance with the organization’s rules, taking into account information available at the time of publication, and can re-examine any notice if new information emerges, as it did in the Morocco case. “This is complete callousness [on the part of Saudi Arabia] knowing what will happen to these Uyghurs when they get to China,” Zenz said. In Morocco, a Uyghur human rights activist and journalist critical of China’s policies remains imprisoned following an Interpol red notice against him issued at Beijing’s request. The Chinese Embassy in Washington did not respond to a request for comment on this article. The database includes 60 documented cases of Uyghurs accused of promoting or partaking in separatism or terrorism or being linked to an extremist group. Beijing says these “re-education camps” provide vocational training and are necessary to fight extremism.

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Image courtesy of "Bloomberg"

China Orders Top Coal Region to Ensure Supplies to Coastal Hubs (Bloomberg)

China has called on its top producing province to guarantee thermal coal supplies to some of the industrial hubs on the coast threatened by power shortages.

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Image courtesy of "Forbes"

China Begins Mass Testing Beijing's Biggest District After Raising ... (Forbes)

Officials in Beijing will require the people who reside or work in Chaoyang—the city's main business district—to undergo three Covid-19 tests this week ...

City officials have allowed some residents—residing in areas deemed safe—to step out of the homes but wider restrictions across the city are set to remain in place until new infections are effectively eliminated. Despite facing the highly infectious BA.2 Omicron variant the coronavirus, Chinese authorities have remained steadfast in their pursuit for “zero-Covid.” Earlier this month, China’s President Xi Jinping backed the approach stating that “prevention and control work cannot be relaxed.” However, stringent nature of the lockdown in Shanghai has cause anger and frustration among citizens, whose criticism of authorities has been blocked by China’s web censors. Residents in Beijing rushed to stock up on food and other essential items and supermarkets in the city stayed open till late on Sunday, after authorities raised alarm about the undetected spread of Covid-19 in the city, the New York Times reported.

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Image courtesy of "The Guardian"

Markets hit by China lockdown fears; UK manufacturing confidence ... (The Guardian)

Fears over China's economy are rising as Beijing district launches mass-testing, factory confidence drops and more British households are hit by rising ...

This is set to get worse, with the estimated number of households experiencing fuel stress hitting five million this month. However, this could be because people are burning through their lockdown savings in a bid to meet their day to day living costs while others opt to borrow more to meet their needs. With that in mind, the likely pressure valve is going to be disruption to China’s export machine, and a cratering of consumer confidence. Mortgage payers have had the option to fix their costs in recent months, but those who rent will feel very exposed to further increases in the coming months.” Back in 2014 the gap was 11.7%. The latest measures are likely the most draconian yet with infected people being transferred to government quarantine facilities, while some neighbourhoods have been fenced off. It is always possible that the deal collapses at the last minute, the sources added. Authorities have placed parts of Chaoyang district under lockdown and ordered residents to get tested three times this week. Restrictions in Shanghai are being tightened again, having been partially eased only last week, after a fresh flare-up in daily cases. This triggered panic as people had hoped that lockdowns would ease in Shanghai rather than more restrictions being imposed elsewhere. Although some parts of China have been under restrictions longer than Shanghai, omicron’s arrival in Beijing would be an ominous development. China has tightened parts of the Shanghai lockdown, including erecting fences around apartment buildings with Covid-19 infected individuals.

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Image courtesy of "Evening Standard"

FTSE 100: markets tumble across the globe on China and Germany ... (Evening Standard)

That move should make bonds more appealing at the expense of equities, while a slump in the world's second biggest economy due to the ongoing Covid crisis would ...

More than four in ten said they would not be able to save money in the next 12 months. Candace Browning, head of global research at Bank of America, said: "Concerns around rates and recession are now the biggest risks for investors. "Market moods have deteriorated as the Covid situation in China is not improving and the media is hinting that Beijing could be next in line for a lockdown after Shanghai and several other major cities.” “The prospect of further restrictions in China could lead to a poisonous mix of further inflationary pressure, as supply chains in the so-called ‘factory of the world’ get disrupted, and weaker economic growth. Germany could fall into recession if there is an embargo of Russian energy. Rabobank strategist Jane Foley said: “We had German officials saying last week that if there was an immediate embargo of Russian energy then it would cause a recession in Germany. And if there was a recession in Germany, that would drag the rest of Europe down and have knock on effects for the rest of the world.”

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Image courtesy of "The Diplomat"

China's Zero COVID Policy to Renew US West Coast Port Congestion (The Diplomat)

Lockdowns in Shanghai and elsewhere are resulting in shortages, as there's a backlog of goods waiting to be moved within China and around the world.

On the other side of the world, the U.S. is experiencing a glut of empty containers, resulting in a decline in some container prices. Although the United States has struggled with this issue for some time, the shortage of truck drivers has entered a crisis stage. Alternative sourcing locations in Asia include Vietnam and Malaysia. In the short term at least, many U.S. importers will simply have to endure yet another disruption in global supply chains. What is more, warehouses are currently at capacity and connecting railways are finding themselves backed up already due to lack of equipment. Remember the backlog of containers waiting to be unloaded at the United States’ Los Angeles and Long Beach ports last year? Already, supply chain managers are experiencing shortages in goods sourced from China, particularly in the electronics, automotive, and semiconductor sectors.

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