China Press Review – February 11, 2020

Press review

China’s imports of US goods may drop over 10% in Q1 amid virus onslaught – Global Times
China to honor trade deal despite epidemic, according to experts.    Economic experts expressed confidence about the resilience of Chinese economic development.

Chinese automobiles tycoon Li Shufu to merge Geely with Volvo in first step towards creating a global carmaking powerhouse
Talks with Volvo about a merger at preliminary stage, Geely Automobile tells Hong Kong exchange   The combined entity could list either in Hong Kong or Stockholm

Canadian military reportedly wants Trudeau to ban Huawei from country’s 5G networks
Senior military officials told the Canadian government they believe allowing Huawei a role in 5G would threaten national security, according to a report    American officials have warned the US might be forced to hold back secret intelligence from Canada if the prime minister gives Huawei a role
Manage the Unseen to Succeed in China
manage the unseenIn our business we are data driven to get the consistently right candidates for our customers. Data is usually something measurable, meaningful and reproducible.  However, today I want to note that the most important things in a company are unseen. Invisible things count most actually. Let’s manage the unseen better.    For example, every company has beliefs, values, and assumptions.  These vastly impact every company whether they realize it or not.  They impact other invisible things like trust, passion, focus and on and on.  They deeply affect every person you hire.

Hong Kong, China stocks advance on expectations Beijing will boost liquidity to lessen coronavirus hit to economy
Shanghai Composite Index rises for sixth straight session   Tencent jumps 2.1 per cent

China’s central bank injects 100 bln yuan into market
China’s central bank pumped 100 billion yuan (about 14.3 billion U.S. dollars) into the financial system via reverse repos on Tuesday.  The People’s Bank of China injected the fund through seven-day reverse repos at an interest rate of 2.4 percent.

Air freight services in China still in flux, with cargo bottlenecks on the cards
As airlines continue to pare Chinese services, with much belly capacity now not returning until the summer season begins in April, freight data on the routes is becoming harder to interpret – but a freight “bottleneck” is expected soon.

Coronavirus: China’s firms face grim reality as help from Beijing could take too long to trickle down
Tens of millions of small businesses across China face an uncertain future as the extended slowdown after the Lunar New Year weighs heavily    China’s central bank has pumped trillions of yuan worth of additional liquidity into the banking system, but analysts and merchants say the measures are not enough

China’s Latest Regional Measures to Support SMEs during the Coronavirus Outbreak
As the outbreak of the novel coronavirus in China hampers business activity, regional governments are rolling out a slew of measures to support small and medium-sized enterprises (SMEs).
In this article, we provide you the most updated information on local measures that have been released in different regions of China.

Opinion: The Real Economic Damage Won’t Come From the Coronavirus, But the Stimulus That
The coronavirus outbreak has struck yet another blow to the Chinese economy after the improvement in business confidence since the phase one trade deal was announced in mid-December. How severe the impact of the coronavirus may be on the Chinese economy will depend not only on the extent and depth of the virus outbreak, but also on the government response. The central bank’s immediate and bold reaction to calm markets with the equivalent of USD 170 billion in a liquidity injection says it all about the pressure for Chinese policymakers to mitigate the impact of the coronavirus outbreak on financial markets, on sentiment and on the Chinese economy more generally.

In Depth: China’s Financial War Against the Coronavirus
As the economic and social shockwaves from the coronavirus outbreak continue to spread across China, they are now engulfing the country’s small and midsized enterprises, with millions facing liquidity crises that could threaten their very survival.

Alibaba Group on Monday unveiled measures to help small and medium-sized enterprises in China affected by the coronavirus outbreak.
In an open letter published on a day when many businesses across the country were resuming their operations after an extended Lunar New Year break, the group emphasized the importance of containing the outbreak, while also ensuring the continuation of economic development and the survival of enterprises. Alibaba had already established two task forces to support SMEs during the outbreak and said the new measures would ramp up efforts to help merchants during this difficult period.

Alibaba joins peers in offering small business support
Other Chinese tech companies like Meituan and Pinduoduo had already announcement supportive small business measures amid the crisis.

E-commerce companies offer temporary jobs to thousands amid coronavirus outbreak
Business units of Alibaba and, as well as e-commerce start-up Meicai, have initiated temporary staff recruitment programmes    Their demand for temporary workers followed a sharp rise in grocery deliveries across the country

Chinese smartphone giant Vivo pulls out of world’s biggest mobile show over coronavirus concerns
Vivo is the only one of China’s major Android smartphone suppliers to withdraw participation from MWC Barcelona  Huawei, Oppo, Xiaomi and ZTE are still taking part in the trade show, but have cut the size of their contingent

Coronavirus prompts Sony, NTT Docomo and Intel to pull out of Mobile World Congress in Barcelona
US chip giant Intel and Japanese companies NTT Docomo and Sony join others that have withdrawn from the MWC due to concerns about the coronavirus outbreak     MWC, due to take place on February 24 to 27, is the telecommunications industry’s biggest annual gathering

China’s hi-tech hub Shenzhen gets back to work despite fears deadly coronavirus will continue to spread
Hundreds of thousands of workers have travelled back to their workplace after the extended Lunar New Year break despite the risk from the deadly illness   Southern megacity has told businesses to seek permission to resume operations as authorities try to curb spread of virus

Apple supplier Foxconn resumes some production at its main China iPhone site
It is unclear how many workers have returned to work at Foxconn’s plant in Zhengzhou, capital of central China’s Henan province

How the coronavirus outbreak exposes the fallacy of the US-China phase-one trade deal
The deal is structured around targets that will be thrown into disarray by unexpected events   It tilts the playing field in China in favour of the US vis-à-vis its own allies, such as Australia and Europe, and contradicts the logic of liberal capitalism

Beijing and Shanghai impose new controls on residents as China battles to contain coronavirus
Capital and country’s financial centre with combined population of over 44 million join dozens of other cities that have gone into partial lockdown in effort to contain spread of virus   Mask-wearing in public made compulsory and curbs on movement of people and vehicles introduced in Beijing

Coronavirus outbreak drives demand for China’s online grocers as tens of millions of consumers hunker down at home
Millions of consumers shunning supermarkets and meal-delivery services are testing promises by Tencent-backed Missfresh or Alibaba’s nationwide Hema chain to ship fresh food to their doorsteps

Coronavirus exposes fundamental flaws in China’s economic growth model, and Beijing cannot fix it
The outbreak of the novel coronavirus, which has killed over 1,000 people and infected over 40,000, has highlighted the good and bad sides of a state-controlled system   China was able to build a hospital in a few days, but only after the outbreak of the virus had been under reported or even covered up

At least 500 Wuhan medical staff infected with coronavirus
Medical sources in the city confirm rate of infection, but say they have been told not to release the full picture to the public    So far three deaths among medical workers have been confirmed, including that of Li Wenliang, but higher rate of infection risks hampering fight to curb disease

Online cries for help in a Chinese city under coronavirus siege
Relatives of people infected in Wuhan are resorting to the internet to try to get hospital care for their family members     From WeChat groups to city hotlines, desperate children seek help for their parents

Wuhan’s Much-Maligned Virology Institute Seeks Patent on US Drug
After being criticized for inaction early in the coronavirus epidemic, China’s top virus lab is under fire for rushing to secure the usage patent for a drug it didn’t develop.

Tencent’s Coronavirus-Tracking Platform Gets Mixed Reviews
While some say revealing a patient’s diagnostic status is in the public interest, others argue it’s infringing upon their privacy.

Ride-hailing firms help Chinese authorities launch real-name registration on public transport for coronavirus tracking
New systems by ride-hailing companies Meituan and Dida require commuters to provide personal information before taking public transport in some Chinese cities    The initiative is meant to help authorities track those who might have been in contact with individuals infected with the novel coronavirus

Video: Remote work during coronavirus outbreak
Many companies in China have started remote work from home as governments and companies are trying to contain coronavirus. Everyone came back to work on Feb 3, 2020, but stayed at home. Two of the largest enterprise platforms, DingTalk and WeChat Work, were overwhelmed by the number of users. DingTalk announced Monday evening that it served over 10 million companies and more than 200 million employees.

Coronavirus Latest: Senior Hubei Health Officials Fired, Leading Epidemic Expert Predicts Peak This Month
China is grappling with an outbreak of infections from a new coronavirus that began in December. Caixin Global will continue covering this story as it develops. Please check back regularly for updates.

Which Tech Companies are Benefiting from the Coronavirus?
The coronavirus has changed the way of life of many people in China over the last few weeks. This change in consumption patterns is also boosting some industries.    As the old Chinese saying goes, a crisis is a combination of risk and opportunity. And a lot of tech companies are seizing this opportunity for growth.

The world’s top IPO engine grinds to a halt and road shows sputter as bankers, deal makers stay home amid coronavirus lockdown
InnoCare, China Bright Culture, Softex are among the companies that are said to be putting their IPO road shows on hold    Investors, advisers in lockdown unable to sign new deals; bright spots are health care and online gaming

Coronavirus: Senior Chinese officials ‘removed’ as death toll hits 1,000
China has “removed” several senior officials over their handling of the coronavirus outbreak – as the death toll passed 1,000.    The party secretary for the Hubei Health Commission, and the head of the commission, were among those who lost their jobs.

China’s Communist Party is purging local officials as public anger mounts at coronavirus epidemic that has killed more than 1,000
China has ousted high-ranking officials in its Hubei province amid widespread outcry over the continuing coronavirus outbreak.   Several Communist Party officials, including the party secretary for the Hubei Health Commission and the head of the commission, lost their jobs in the government purge, accordin to the BBC.  As of Monday, the disease has killed more than 1,000 people and infected over 42,000 others. News of the firing comes as China’s highest anti-corruption agency sent a team to Hubei to conduct an investigation after the death of doctor Li Wenliang, who tried to warn people about the virus but was censored.

Xi Jinping May Lose Control of the Coronavirus Story
Will the Wuhan virus hurt party rule in China?

How Xi’s ‘controlocracy’ lost control of the coronavirus epidemic sweeping China and the world
Under the central government’s tight grip on all aspects of Chinese society, critical information about the virus was not made public in time  The death of a whistle-blower doctor has ignited public anger and intense resistance online, putting President Xi Jinping’s hi-tech censorship machine to the test

While the coronavirus’ spread is blamed on communism, are Americans tracking the ills of their own political culture?
China’s historical self-confidence and the Chinese tendency to believe they or their ancestors have seen it all can prove helpful as a means of survival. Yes, there will always be a China and, while the sources of epidemics are not easily instantaneously identified, on balance it is probably better for governments to assume the worst at the first sighting of a suspicious agent than cross their fingers and hope it’s no more than the common cold.  Authorities in China should have learned not only from their own slow-boating during the severe acute respiratory syndrome outbreak but also from the United States’ unforgivable foot-dragging over Aids, another virus empowered in part by delinquency at almost every official level.

China’s aquaculture modernization effort hampered by corruption
Even with China’s potential need for help with its effort to modernize China’s aquaculture sector, it remains to be seen whether foreign companies will get easier access to state-funded development programs. The “Phase One” trade deal signed between China and the U.S. last month has started a thaw in relations between the two superpowers, but the agreement didn’t resolve the thorny issue of the U.S. disapproval of China’s generous use of state subsidies to support sectors that are more privatized in the United States. Discussions regarding the outsized role of state-owned enterprises in China’s economy is apparently being left to phase two of the talks.

Proposed EU criteria for new members show wary Europe has China on its mind
A new system aimed at facilitating the membership of Balkan states will now require candidates to be evaluated on their ability to ‘tackle malign third-country influence’   This comes in the wake of EU warnings over the past year of China’s growing influence in Central and Eastern Europe

Coronavirus: keep cool and carry on, China urges Germany
Angela Merkel tells Li Keqiang that Berlin will do what it can to help deal with the outbreak, according to Chinese state media    Britain declares that the new coronavirus posed a serious and imminent threat to public health

China denies US Equifax hacking claims and insists it does not engage in cybercrimes
Four People’s Liberation Army officers have been charged with stealing personal data from 147 million Americans after targeting credit agency     Spokesman for foreign ministry says government and military do not support cyber theft and accuses America of double standards

How to Reach Chinese Men with Your Luxury Brand
According to Daxue Consulting, a Chinese-focused market research and management consulting firm, menswear accounts for almost half of the clothing industry’s total sales value in China. This shouldn’t come as a great surprise given China’s gender imbalance. Today, China’s roughly 33 million surplus men have become a powerful consumer base that turns to shopping to avoid loneliness and boredom. These Guanggun or “bare branches” have distinctive consumer habits and interests compared to men in Western societies and they have a different understanding of luxury.

Wuhan’s dancing coronavirus patients provide moment of light relief for Chinese looking to keep their spirits up
State media highlights widely circulated clip from makeshift hospital as ‘amazing example’ of how people are trying to stay positive    Footage proves popular on social media, but some web users remind people not to overlook problems such as shortages of equipment and poor hygiene

Alain Gillard
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