China Press Review – March 3, 2020

Press review

China’s state-owned enterprises ‘prime target’ of new EU competition plan
European Commission vice-president reveals the bloc will set out proposal in June for powers to tackle foreign subsidies, state ownership     It may further complicate negotiations between Brussels and Beijing over an investment agreement

US-China phase one trade deal likely to give state-owned companies more sway over Chinese economy, report says
Beijing will be pressured to force SOEs to buy more imports to fulfil commitments, according to Peterson Institute for International Economics     US imports covered by the phase one deal have primarily been bought by the private sector and remain more expensive in China because of tariffs

China’s economy 2019 in 9 charts
The gross domestic product (GDP) of China in 2019 was 99,086.5 billion yuan, up by 6.1% over the previous year according to preliminary estimation of National Bureau of Statistics of China.

Coronavirus: will China’s economy shrink for the first time since the Cultural Revolution in 1976?
Plunges in official and private sector purchasing managers’ indices amid the coronavirus outbreak prompted sharp revisions of economic forecasts    Analysts expect China to enact additional fiscal and monetary stimulus but stop short of massive support enacted after the global financial crisis in 2008

Coronavirus outbreak forces China’s start-ups to rethink their priorities
The coronavirus outbreak is shaking up China’s investing industry, as companies shift their business mentalities, while others seek new opportunities. “After this crisis, the market will definitely slow down. That will definitely slow down the private equity market in China,” Michael Xu, managing partner at China-based CEC Asset Management, said in an interview.   While U.S. stocks plunged more than 10% last week in their worst week since the financial crisis, some New York-listed Chinese companies were notably less affected.

China’s Coronavirus Crisis Is Just Beginning
President Xi Jinping of China in Beijing on Monday. As propagandists were preparing a book praising his handling of the epidemic, two well-known critics of China’s party-state published searing analyses of what the outbreak has really exposed.Credit…Yan Yan/Xinhua, via Getty Images
The Chinese Communist Party has always been quick to congratulate itself for how it deals with crises, be they natural disasters or catastrophes of its own making. The coronavirus epidemic is no exception, even now that it has become a global health emergency. The government of China’s first response to the deadly virus, detected in late December, was dilatory at best, willfully negligent at worst, and yet the party promptly lavished praise on the state, particularly on China’s president, Xi Jinping

Opinion: A Pandemic of Deglobalization?
History offers intriguing precedents for what might come next from the Covid-19 epidemic. As the Dutch historian Johan Huizinga showed, the period following the Black Death in Europe turned out to be the “waning of the Middle Ages.” For him, the real story was not just the economic aftereffects of a pandemic, but the mysticism, irrationalism, and xenophobia that eventually brought an end to a universalist culture. Likewise, it is entirely possible that Covid-19 will precipitate the “waning of globalization.”

Twitter advises its 5,000 global employees to work from home amid spread of the coronavirus
Twitter’s policy on working from home is a step beyond what most companies in the US are doing as the virus spreads

Apple supplier Foxconn to resume normal production in coronavirus-hit China by end of March
More than half of Foxconn’s seasonal workforce had restarted work following the coronavirus outbreak

Waymo gets US$2.25 billion from external investors to fund global expansion in self-driving vehicles
Other investors in first external funding round are auto parts maker Magna, venture capitalist Andreessen Horowitz and car dealership AutoNation    The Waymo Driver has clocked more than 20 million miles on public roads across over 25 cities and over 10 billion miles in simulatio

Luxury sector prepares for worst as coronavirus goes global
Luxury events have been cancelled and postponed worldwide as the Autumn/Winter 2020 fashion show season struggles to a close.

China’s e-commerce proves resilient under Covid-19
Brands are shifting their focus to online as the outbreak continues to plummet retail footfall.

Why Kuaishou beats Douyin for e-commerce
Kuaishou and Douyin are the two largest short video platforms in China. However, due to the difference in their audience demographics, the two platforms have evolved quite differently:

China’s Support Policies for Businesses under COVID-19: A Comprehensive List
To cushion the economic hit caused by the COVID-19 outbreak, China’s central and local governments have been rolling out a series of supporting policies to shore up the confidence of businesses and ease some of their compliance burdens, besides ensuring steady medical supplies and daily necessities. Here we provide a consolidated and updated list of all these policies, which include policies guiding businesses to resume production, measures to facilitate foreign trade, provision of tax and fee reductions and exemptions, financial support, social security benefits, energy cost reduction, and incentives for medical supply donations. Businesses in China, including foreign-invested enterprises (FIEs), can leverage these special policies to overcome the difficulties caused by COVID-19.

G7 to deploy all policy tools to combat coronavirus
Group of Seven finance officials said on Tuesday they would use all appropriate policy tools to achieve strong, sustainable global growth and safeguard against downside risks posed by the fast-spreading coronavirus.

Coronavirus must push the US and China to pause strategic competition in favour of a coordinated war on the epidemic
A US and China-led meeting, like the 2009 G20 summit in London at the height of the global financial crisis, could bolster the world economy, especially if coupled with concrete support to developing countries, such as an emergency lending mechanism

Wuhan doctor who worked with whistle-blower Li Wenliang dies after contracting coronavirus on front line
Ophthalmologist Mei Zhongming, 57, said to have been infected after working long hours treating patients     He is the third doctor from the hospital to die from Covid-19

As Virus Outbreak Grows in Beijing, City Turns Its Eye to the Roads
The Beijing government has banned all taxis and carpooling services from traveling in or out of the city in its latest measure to control the spread of the coronavirus.  The new restriction, which took effect Friday, comes as a number of new cases of Covid-19, the disease caused by the new coronavirus, have appeared in the nation’s capital since work resumed at local companies and factories after an extended holiday. As of Tuesday morning, China has confirmed more than 80,000 Covid-19 cases, including nearly 3,000 deaths.

Life after Covid-19: how we travel, socialise and form economic supply chains must change for good
Once the epidemic is successfully controlled in China, the government should impose strict quarantine measures on incoming visitors to prevent a second wave of infection   Globally, health declarations should in future be required of all travellers, while economies must begin to diversify their sources of goods and services

China’s return to work is good news for the economy – but it also risks unleashing a second wave of Covid-19 infections
Both the government and businesses are eager to restart and revive the economy. But as millions pile back into factories, cafeterias and dormitories, the risk is that a new wave of Covid-19 could pose even bigger risks to the system

Coronavirus: Xi Jinping focuses on long-term battle as more countries report cases
Number of new infections in mainland China falls to lowest level since it locked down cities at centre of epidemic in January   EU raises risk level to ‘moderate to high’ as death toll in Europe from Covid-19

China urges overseas Chinese to stay away as imported virus cases rise
Chinese authorities on Tuesday asked overseas Chinese to reconsider or minimize their travel plans as the coronavirus epidemic spreads across the world and prompts an uptick of imported cases arriving in the country.

Life after Covid-19: how we travel, socialise and form economic supply chains must change for good
Once the epidemic is successfully controlled in China, the government should impose strict quarantine measures on incoming visitors to prevent a second wave of infection    Globally, health declarations should in future be required of all travellers, while economies must begin to diversify their sources of goods and services shares surge 12% on strong Q4 earnings beat
Chinese online retailer posted on Monday robust top-line growth for the fourth quarter of 2019, sending shares up 12% by market close.

‘Political oppression’: China hints at payback for US limits on Chinese state media
Chinese foreign ministry says US action against five Chinese news groups will harm ties between the two countries US secretary of state says personnel caps are response to Beijing’s expulsion of Wall Street Journal reporters

Archive of Our Own, one of the internet’s biggest fanfiction sites, blocked in China amid new censorship rules
Archive of Our Own, also known as AO3, says its site is inaccessible in China and it is “not due to anything on our end”     The site’s disconnection from China’s internet has angered some users, who blame fans of actor Xiao Zhan for reporting a story featuring their idol

Friends and Enemies: China Is Grading the World’s Coronavirus Reactions
Which countries received China’s praise – or its scorn – over their COVID-19 assistance ultimately boils down to diplomatic interests more than reality. China has shown an affinity for using diplomatic protocols to signal to other states where their official relations stand with China. In regards to the coronavirus, on February 5, China’s Foreign Ministry listed “ the governments of 21 countries” who had offered “friendly understanding, support and help” during the crisis, namely “ROK, Japan, Thailand, Malaysia, Indonesia, Kazakhstan, Pakistan, Germany, Britain, France, Italy, Hungary, Belarus, Turkey, Iran, the United Arab Emirates, Algeria, Egypt, Australia, New Zealand, Trinidad and Tobago, and UNICEF.”

Is the Coronavirus to Blame for Backlash Against Chinese Green Card Changes?
China’s restrictions on foreigners seeking permanent residence in the country have been gradually loosening since 2016. And as we reported last week, the Ministry of Justice (MoJ) took another step forward recently in allowing foreigners permanent residence in the country by proposing new rules for the “green card” application process.

Trade show blues: Exhibitions go virtual as virus spreads
 Fine wines and hipster gin. Hunting rifles and knives. Contemporary paintings and million-dollar sports cars. They’re all marketed at trade events that are quickly going dark across the globe due to the new coronavirus – and taking with them sales opportunities that may be difficult to make up. Some companies are taking their shows online with virtual events they stream from their headquarters to reach customers anyway.    But marketing experts and executives warn that there is no substitute for face-to-face contact with potential clients, as exhibition companies try to total up the losses being suffered by an industry that also pumps billions into hotels, restaurants and cabdriver’s wallets.

Trade fair cancellations
The spreading coronavirus has an impact on the international trade fair calendar. Lebensmittel Zeitung informs about cancellations and postponements of trade fairs in Germany and Europe.

Coronavirus hits the events industry: These conferences are canceled or scaled back
So far, these are some of the events that have been canceled, postponed or turned into online-only events.

Postponed: 14th World Cargo Symposium
Responding to concerns about the coronavirus outbreak (COVID-19), IATA has announced that it has taken the decision to postpone its upcoming 14th World Cargo Symposium (WCS) in Istanbul, Turkey. While there have been no cases of coronavirus recorded in Turkey as yet, the decision of postponement has been made as part of a safety measure by the association.

The International Tourism Trade Show 2020 in Paris // Cancelled
The International Tourism Trade Show was expected to return from March 12 to 15, 2020. Unfortunately, the show won’t take place this year as the coronavirus pandemic spreads worldwide since earlier this year.

ITB India 2020 will be postponed to April 2021
The ITB India organisers have announced to postpone ITB India 2020, originally scheduled to be held on 15 – 17 April at Bombay Exhibition Centre. ITB India 2021 will be held on 7 – 9 April at Bombay Exhibition Centre, Mumbai.

Big 5 Saudi construction show postponed
The Big 5 Saudi construction show has been postponed to later this year due to the current issues surrounding the coronavirus, the event organisers said.  The expo was scheduled to be held from March 8 to 11 in the port city of Jeddah.

Breaking news: Energy Storage Europe trade fair postponed
Messe Düsseldorf GmbH is postponing the trade fair Energy Storage Europe. The company is discussing alternative dates in coordination with all partners involved.

Paris Book Fair Canceled, Brussels to Go Ahead
As a result of the spread of the new coronavirus, the Salon du Livre in Paris has been cancelled. The French government announced over the weekend they were banning gatherings of more than 5,000 people in any enclosed space for the foreseeable future. The event was to be held March 20-23, with India as the guest of honor.

Leipzig Book Fair cancelled over coronavirus fears
One of Germany’s biggest international events has been cancelled due to the coronavirus outbreak.

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