China Press Review – February 21, 2020

Press review

US removes China from list of developing countries
China, together with some other countries, has been removed from the United States’ list of ‘developing’ nations and considered as a ‘developed’ country when it comes to international trade, according to a recent notice issued by the Office of the US Trade Representative (USTR).  The US also revoked its special preferences for a list of World Trade Organization members, including Brazil, India, Indonesia and South Africa.

Are You Prepared for the Outcome of the U.S.-China Trade War?
For exporters, importers, manufacturers and investors who are heavily involved in U.S.- China trade, the recent agreement provides potentially immense benefits – but still doesn’t end their uncertainty or anxieties about what the future may bring.

Despite the coronavirus crisis and trade war, factories have good reasons to stay in China
The Covid-19 outbreak is holding up production in parts of China, and making relocation a more concrete possibility. However, China’s logistics infrastructure and huge consumer market give it advantages over other production locations

Coronavirus ‘dents plans’ for EU-China investment deal by September
European trade chief says bloc’s new leadership also unlikely to meet Chinese premier in Beijing next month    Parties still to reach agreement on key issues such as forced technology transfer, official says

The U.S. Indicts Huawei Citing Decades-Long Efforts to Steal IP and Trade Secrets
The Department of Justice has indicted Huawei on revised grounds, accusing the company of stealing technology under RICO statutes.

Lenovo to boost production overseas as coronavirus crisis slows down China manufacturing
The world’s largest personal computer supplier’s big concern is the delayed return of workers to factories

Here’s How the US May Adopt 5G
There might be lessons for India in the way the US adopts 5G 5G has been called the “greatest infrastructure project in US history.” The economic value derived from deploying 5G in such areas as artificial intelligence, autonomous vehicles, the internet of things (IoT), industrial software, robotics, and semiconductors is expected to top $2 trillion by 2025. Longer term, the global economic impact of 5G is estimated to exceed $12 trillion dollars in the next 15 years. However, the widespread adoption of 5G will require vast new infrastructure. A McKinsey study estimates that implementing such 5G applications as enhanced mobile broadband, IoT, and mission-critical applications will require a 10-fold increase in network performance over current levels. Thus, mobile operators must invest in major infrastructure enhancements, including (but not limited to) access to spectrum, cell sites, fiber optic networks, fronthaul and backhaul. By some estimates, the cost of implementing 5G technology worldwide is expected to reach at least $2.7 trillion by the end of 2020.

Growth of China’s hi-tech industries slump to record low
Analysts see the slower-than-expected resumption of business in China to slow growth this first quarter

Coronavirus: How COVID-19 shut down the tech industry
The novel coronavirus presents long-term ramifications for the tech industry

Chinese start-ups scramble for cash as venture capital investments freeze amid coronavirus outbreak
As China venture capital-backed deals drop to a six-year low, venture capitalists are advising start-ups to go into “hibernation”    As the Chinese economy slows, some venture cap see fewer deal opportunities in 2020

US campaign against Huawei’s 5G role in UK set to continue
Issue raised by Trumps chief of staff Mick Mulvaney in meeting with Dominic Cummings

China sees only short-term virus impact on Southeast Asia economies
senior Chinese diplomat on Friday sought to ease concerns about the economic impact on Southeast Asian countries from the coronavirus outbreak, including delays in infrastructure projects that are part of China’s Belt and Road Initiative.

Coronavirus epidemic just a bump in the road for China
The ongoing coronavirus epidemic has hit the Chinese economy dramatically because the major measure that countries have taken to contain its spread is to block the movement of people. This reduces labour migration, household consumption, travel and tourism, and operation of shops and factories. But it is likely to generate negative economic impacts only for one or two quarters and not the whole year.

Ping An says the coronavirus will impact China’s economy but has also been ‘helpful’ for its business
Ping An Insurance’s Jessica Tan tells CNBC how the company’s technology expertise has given it an edge amid the ongoing coronavirus outbreak. However, she added that “What we see about the impact in virus, particularly in the first half, will definitely impact the economy.” Tan’s comments came a day after Ping An posted earnings that missed expectations despite a more 39% surge in its 2019 net profit. In the 2019 annual report, Ping An said the virus “may affect the quality or the yields of the credit assets and investment assets of the Group in a degree.”

Coronavirus a boon for China’s tech-savvy supermarkets as homebound customers switch to online grocery orders
Supermarket chains that have been actively improving their e-commerce services have reaped the rewards as people opt for home delivery    Products such as fresh food that were previously sold overwhelmingly offline have seen huge rise in online orders during the health crisis

Coronavirus: China’s car sales collapse, as officials warn of sharp trade decline to come
China Passenger Car Association said sales fell to just 4,909 units in the first 16 days of February, from 59,930 in the first quarter of 2019 The growth rate for China’s imports and exports is expected to decline sharply in the January-February period  A 92 per cent drop in car sales in China in the first half of February provided the first real indicator of the economic impact of the coronavirus epidemic, with officials also warning of a sharp decline in Chinese exports and imports for the first two months of the year.

China’s Geely starts online auto sales as virus epidemic keeps buyers at home
Chinese automaker Geely has launched a service for customers to buy cars online and get them delivered directly to their homes, in a bid to drum up sales as the coronavirus outbreak prompts buyers to stay away from showrooms.

Toyota plans partial output resumption at all four China plants
Toyota Motor Corp (7203.T) said on Friday it planned for all four of its vehicle assembly plants in China to be in operation from next week after weeks of stoppages due to the coronavirus outbreak, although output at some plants would be limited.

China said to consider extending electric car subsidies after sales slump
Talks to extend the handouts predate the emergence of the coronavirus outbreak as a global threat   China introduced EV subsidies a decade ago and these played a key role in turning the country into the top market globally

Coronavirus: air travel demand ‘will fall for first time in 11 years’
Predicted drop in passenger numbers because of outbreak will cost industry $29.3bn – Iata

Coronavirus: Asian airlines set to lose US$27.8b as demand for flights shrivels amid outbreak
Asia-Pacific carriers will suffer a 13 per cent decline in full-year passenger demand, global airline trade group says     Airlines face tough choices on reducing flight schedules or cutting routes outright

The Impact of Travel Restrictions on Global Economies
In light of the Covid-19 virus, travel restrictions have been implemented around the world. But are they harming international destinations more than they’re helping them?

Coronavirus on G20 agenda as China reports uptick in cases
China reported an uptick in new cases of coronavirus on Friday, boosted by more than 200 people testing positive for the disease in two prisons outside of Hubei province, the epicenter of the outbreak.

Overseas Returnees, Six Other Types Exempted from Mandatory Quarantine, Says City
The city government this afternoon announced seven types of individuals that are exempt from last week’s proclamation that all returnees would be required to observe a 14-day quarantine at home upon arrival.

Virus shows plight of China’s overstretched doctors
The coronavirus epidemic has shined a spotlight on another simmering crisis in China’s healthcare system: a critical shortage of doctors.

How Virus Lockdown Orders Went From Xi Jinping to My Neighborhood Auntie
Virus quarantine measures have left hundreds of millions of people trapped indoors.

China’s e-commerce giants deploy robots to deliver orders amid coronavirus outbreak
As customer fears about the coronavirus cast a shadow over China’s food delivery industry, several companies have announced robot-delivery related services    Meituan put its autonomous delivery vehicles on public roads for the first time this week, while and are sending their robots to quarantine areas

Scan-Reading AI Systems Are Helping Doctors Diagnose COVID-19
One company says its system can detect viral pneumonia with 99% accuracy, but experts are skeptical of a similar product from Alibaba that claims to diagnose COVID-19 specifically with 96% accuracy.

China Sees No Turning Point; ECB Predicts Rebound: Virus Update
The coronavirus outbreak accelerated outside China, with South Korea reporting a surge in infections. China adjusted the number of cases for the third time this month, raising more questions over the reliability of the data.   The epidemic in China has been tentatively contained but hasn’t reached a turning point yet, according to China Central Television, which cited a politburo meeting. Infections in China topped 75,000.

Coronavirus: South Korea ’emergency’ measures as infections increase
South Korea has stepped up measures to contain the spread of the deadly new coronavirus, as confirmed infections increased sharply for a second day.

South Korea Coronavirus: Concern in Daegu as cases rise
South Korea has stepped up measures to contain the spread of the deadly new coronavirus, as the number of confirmed cases rose above 200.   The southern cities of Daegu and Cheongdo have been declared “special care zones”.

Coronavirus patient re-hospitalized in China’s Chengdu after testing positive again
A coronavirus patient initially discharged following recovery in southwestern Sichuan province’s Chengdu city has been readmitted after testing positive again during a quarantine period at home, the city’s public health clinical centre said on Friday. Similar cases have been reported in other regions, the centre said in a statement.

Coronavirus: Hubei reports outbreak in prisons, adds 200 infections to local total
Hubei province revises daily numbers up to 631 new cases following reports of jails hit by epidemic   Recent downward trend on mainland reversed as 118 further deaths reported Zhao told the magazine Southern People Weekly there were cases in China in which recovered patients continued to show traces of the virus through nucleic acid tests. There were similar results in Canada, where nose and throat swabs taken from a couple who had recovered from Covid-19 revealed they still had traces of the virus.

Coronavirus: WHO says response to call for US$675 million in funding to battle outbreak is falling short
The World Health Organisation said earlier this month that US$675 million is needed to battle ‘public enemy No 1’     Containment strategy and vaccine are said to be needed to prepare for worst-case scenario

New Canadian coronavirus patient never went to China, but had visited Iran
Health authorities say latest case could be ‘indicator that there’s more widespread transmission’   Woman in her 30s is the ninth person in Canada to contract the disease

Chinese province tries to end coronavirus confusion after telling officials they cannot remove confirmed cases from list
Hubei leaders say previously confirmed cases must stay on the list because removing them caused people to doubt the figures  Covid-19 diagnoses that were not confirmed by a lab test were permitted one week then banned the next

As China Fights the Coronavirus, Some Say It Has Gone Too Far
“Strike a balance that is conducive to protecting lives,”

Shanghai is China’s economic juggernaut. Coronavirus has left it a city on edge
On a normal weekend, Shanghai’s world-famous Nanjing Road is packed with shoppers and tourists, keen to indulge themselves in China’s thriving financial hub.     But this week, the streets are mostly empty and stores are either closed or deserted due to fear of the deadly coronavirus, which has killed more than 2,000 people across the country.

Robot chefs and free software among masks, gloves and biohazard gear as China Inc donates to contain coronavirus outbreak
Country Garden Holdings, one of China’s biggest real estate developers, has donated its Foodom robot to a quarantine centre in Wuhan to prepare meals for health officials    The product is among the billions of dollars of products that have poured into Wuhan since the outbreak started

Chinese trials for Gilead’s antiviral drug to treat coronavirus still far from reaching patient recruitment goals
Antiviral remdesivir is being trialled as a treatment for the novel coronavirus in 10 hospitals in Wuhan  Researchers have recruited more than 230 patients for the trials so far, short of the 760 targeted

Coronavirus: world’s largest market reopens its doors to ‘foreign friends’, promising ‘Yiwu will be normal soon’
Yiwu International Trade market reopened on Tuesday, three days earlier than originally planned, with Zhejiang Textile City also now open for business     Local governments are looking to gradually resume economic activity, but firms are still struggling with workers yet to return and logistics not yet fully functional

Australian university offers Chinese students $1,000 to return via third country
One of Australia’s leading universities said on Friday it is offering Chinese students A$1,500 ($992) if they travel through a third country as higher education providers seek to minimize the impact of a ban on foreigners arriving from mainland China.

Hang Seng Index falls, China stocks rise on mixes expectations about more monetary support to soften blow from coronavirus
Hang Seng Index ends with weekly loss of 1.8 per cent    Casino, beer stocks big losers on Friday

Coronavirus holds up a mirror to China’s problems, and the nation will be the better for it
Out of the ashes of infection and death come fresh calls for freedom of speech, real pressure to cut bureaucracy and formalism, a will to fix problems rather than scapegoat outsiders, and the precious discovery that China has friends in its hour of need

Opinion: Will 2020 Be the Year China Takes the Lead on Sustainability?
The Chinese New Year is off to an inauspicious start. The spread of the coronavirus has paralyzed large parts of the country and caused chaos on one of the most important dates in the Chinese calendar.      The Chinese government has moved swiftly and strictly to contain the outbreak, but the ongoing crisis is a reminder of the interconnectedness of nations and further highlights that 2020 will be an important year for China and for China’s place in the world.

Coronavirus: Study finds lockdown may have helped cut China’s carbon emissions
Report by Centre for Research on Energy and Clean Air says data indicates China’s first decline in emissions in three years    Drop is expected to be temporary, as Beijing has been eager to restart industrial activities

The Rich World Must Take Responsibility for Its Carbon Footprint
China and other developing economies are instinctively wary of developed-country proposals to combine domestic carbon prices with “carbon tariffs” imposed on imported goods. But such policies may be the only way for rich-world consumers to take responsibility for their carbon footprint in other countries.

Copying the Western political model is doomed to fail
China is mobilizing the whole society to combat the COVID-19. What are the challenges in this fight? Why are some Westerners obstinate in anti-China sentiments? How will this affect China-West relations? What’s the solution?

Coronavirus: will surge in Japan infections derail Shinzo Abe’s efforts to woo China?
The prime minister has taken a softer approach to China over the virus than the US, winning Tokyo praise in Beijing     But the epidemic is likely to interfere with Abe’s plans for a state visit by Xi, meant to crown the seven-year slog to restore relations

Coronavirus: China to postpone tropical Davos as outbreak derails slew of high-profile events
March’s Boao Forum for Asia, a gathering of business and political elites, has been postponed due to the coronavirus outbreak It is the latest international event in China that has been suspended as the country struggles to contain the epidemic At least 177 exhibitions set for February have been cancelled or rescheduled, including the Shanghai International Industrial Automation and Robot Exhibition, the Prolight and Sound Fair in Guangzhou and the International Equipment Machinery Exhibition in Jinan city, China Trade News reported. Another 262 exhibitions scheduled in March are likely to be postponed or changed, the newspaper added.

HKTDC Reschedules April Shows Due to Coronavirus
The Hong Kong Trade Development Council will move eight of its trade fairs to this summer.   Under the new arrangement, the HKTDC Hong Kong International Lighting Fair (Spring Edition), HKTDC Hong Kong Electronics Fair (Spring Edition), HKTDC International ICT Expo, HKTDC Hong Kong Houseware Fair, HKTDC Hong Kong International Home Textiles and Furnishings Fair, HKTDC Hong Kong Fashion Week, HKTDC Hong Kong Gifts & Premium Fair and Hong Kong International Printing & Packaging Fair will be held concurrently July 25-28, 2020 at the Hong Kong Convention & Exhibition Centre.

Factbox: Events affected by coronavirus epidemic
The following is a list of international sports events affected by a coronavirus outbreak, which has killed more than 2,200 people and infected more than 75,000 in China after emerging late last year in Wuhan, Hubei province.

Organizers of job fairs and other events in Japan pull the plug as coronavirus concerns build
Health minister Katsunobu Kato on Thursday urged organizers to rethink the need to hold large events as the deadly outbreak continues.    Kato, however, stopped short of asking all organizers refrain and said the decision will be left up to them, for now.

AT&T bails on RSA: How the coronavirus is disrupting tech conferences worldwide
Black Hat Asia, scheduled for March 31 to April 3 in Singapore, has been cancelled. Cisco Systems cancelled Cisco Live Melbourne, scheduled for March 3-6 in Melbourne, Australia, saying in a statement, “Due to ongoing concerns about the current outbreak of Coronavirus, Cisco has made the difficult decision to cancel Cisco Live Melbourne…Facebook cancelled a Global Marketing Summit slated for San Francisco on March 9-12. In a statement, the company said, “Out of an abundance of caution, we canceled our Global Marketing Summit due to evolving public health risks related to coronavirus.” RSA, which runs from Feb. 24-28 in San Francisco, is still scheduled to take place. But IBM has withdrawn, ..RSA has added several new health and safety measures as a result of the coronavirus risk, such as wiping down shuttle bus arm rests and registration counters. The Game Developers Conference, scheduled for March 16-20 in San Francisco, will continue as planned, but the approximately 10 exhibitors from China have all cancelled, and so have all China-based attendees, making up 2% of the show’s expected attendance. The conference will also provide enhance cleaning measures to protect the health of attendees.Salesforce World Tour Sydney has gone from an in-person conference to an online-only event on March 4.   SXSW, in Austin, Texas from March 13-22, is still on as scheduled. The conference include various programming tracks including music, art, film and technology. The conference organizers have included links to coronavirus information for attendees with questions.

Don’t be surprised if China swoops in to prevent another default in Argentina, analysts say
 “Could China provide the funding? This is certainly not a base case, but it is in the back of people’s minds,” Jimena Blanco, head of Latin America at Verisk Maplecroft, told CNBC via telephone.  Argentina’s government is battling to restructure $100 billion in debt — including $44 billion to the International Monetary Fund (IMF). The risk of default in Argentina comes as Latin America’s third-largest economy struggles to recover from a painful recession, rampant inflation and a stock market rout late last year.

Senators warn of threats posed by Chinese rail companies
The lawmakers blend economic security with national security, casting Chinese government subsidies as part of an intentional strategy to achieve global geopolitical primacy.

US must be ready for military clash with China, Pentagon official Chad Sbragia says
US needs to develop weapons, boost ties with allies and improve military efficiency to be ready against ‘formidable’ China, Chad Sbragia says   ‘This is a long-term process. We have to be agile, smart,’ says deputy assistant secretary of defence for China

How China Got Milk
In the span of 150 years, cow’s milk went from practically unheard of in most of China to a staple of a healthy diet.    In bigger cities, like Shanghai, water buffalo milk was diluted, filtered, and steamed before consumption, though only desperate expatriates would touch it.

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