China Press Review – March 5, 2020

Press review

Coronavirus: China, Xi Jinping put 5G technology on top of huge spending plans to salvage economy
President Xi Jinping made it clear that Beijing will rely on additional infrastructure investment to stimulate growth on top of traditional projects including railways  There are concerns China’s economy will shrink in the first quarter of 2020 for the first time since the Cultural Revolution in 1976

Supplies of the hottest smartphones could soon run out as production slows in coronavirus-hit China
The supply chain chaos is already wiping out the smartphone industry’s hopes for sales growth this year    The output slump from factories in China means it will take time to fix global delivery backlogs for brands like Apple, Samsung and Huawei

China’s telecoms carriers push to complete ‘political task’ of 5G network roll-out amid coronavirus crisis
China Mobile, China Unicom and China Telecom are rolling out hundreds of thousands of new 5G base stations across the country

China’s Huawei will build French factory regardless of government’s 5G decision
The Shenzhen-based group, which denies its equipment poses a security risk, is at the centre of a storm pitting the US against China over 5G tech    France’s cybersecurity agency is screening 5G equipment, including from Huawei, for deployment in its network

Coronavirus: China’s ravaged manufacturing heartlands force international firms to speed up exit strategies
Some multinationals are increasingly fleeing China, having seen the coronavirus outbreak as validation of exit strategies made during the US trade war    While some bemoan the lack of alternatives, others will stay for the domestic market as the supply chain debate rages on

How Can Businesses Prepare For A Worldwide Crisis? 4 Tips To Survive.
The coronavirus that emerged in China is now shaking the world economy – including some major U.S. companies – and stoking fears of a global recession.  But, as companies go about mitigating damage, there are lessons they can learn to be better prepared for another rare worldwide crisis “Events such as a worldwide health crisis are a standalone business risk and an amplifier of vulnerabilities,” Chaturvedi says. “The coronavirus may serve as another reason for companies to reassess their supply chain exposure. We often get complacent after a crisis settles down, but businesses who prepare for the next time will be in a stronger position to respond and recover.”

Coronavirus: China’s key ports handled 20 per cent fewer containers in February
China’s top eight ports, including Shenzhen, Shanghai, Ningbo, Guangzhou, Xiamen, Tianjin, Dalian and Qingdao, saw traffic drops 19.8 in February from a year earlier   China is set to release its import and export data for the first two months next week, which would offer an official measure of how the coronavirus has disrupted trade

Coronavirus: Counting the cost of canceled trade shows
Be it Berlin, Paris or Geneva — trade fairs across industries have been called off in the past few weeks due to the coronavirus scare. Now those who’ve incurred losses are asking who will compensate them.

Coronavirus: IMF again cuts 2020 China growth forecast as Covid-19 shakes the global economy
International Monetary Fund slashes its 2020 growth outlook for China to below 5.6 per cent    IMF managing director Kristalina Georgieva cites the ‘sheer geographic spread’ of the coronavirus epidemic globally

Coronavirus batters China’s economy
Just when China and the United States breathed a collective sigh of relief after sealing the ‘phase one’ trade deal, the Chinese economy encountered a ‘black swan’ — an unforeseen event with major consequences. The novel coronavirus (COVID-19) has so far infected over lives in China. Counter measures to contain the epidemic are taking a significant toll on the Chinese economy.

Coronavirus crisis is exacerbating long-standing stock market vulnerabilities – bad news is no longer good news
Markets read the US Federal Reserve’s emergency rate cut as a sign of panic, resulting in last week’s correction, but stocks are still overvalued   Global growth fears have chipped away at market confidence, indicated in the drop in the US 10-year Treasury yield. Markets are now pricing in a recession

Coronavirus: China could become new investment safe haven as stocks, yuan rally while global markets suffer
China stock market has risen 10 per cent in the last month, while yuan has also gained despite the economic damage from the coronavirus outbreak  Investors may see yuan assets as attractive purchases with coronavirus cases seemingly nearing a peak in China but rising rapidly elsewhere

EV subsidies in China are making a comeback
EV subsidies in China are making a comeback News New Energy Vehicles Mobility government 
Two local-level governments in China have revived subsidies for electric vehicle purchases, a bid to stimulate auto sales already in a slump which is deepening with the novel coronavirus outbreak.   The latest move by the city of Guangzhou and Hunan province in central China could spur other localities to release similar measures aimed at stimulating EV consumption and helping the market to regain its footing.

Coronavirus: China keen to promote its success in controlling epidemic
As outbreak has transitioned into a global problem, Beijing has sought to repair the damage to its reputation caused by its early missteps, observers say   It has also offered to share its knowledge with supporters of its Belt and Road Initiative, like Chile, Italy and Iran

China backs free trade in masks despite coronavirus-induced shortages
Chinese commerce official suggests that Beijing will not limit exports of the protective equipment
South Korea joins Germany and Russia in restricting overseas sales of products

Coronavirus: ‘recovered’ patient dies as China reports discharged cases falling ill again
A 36-year-old man has died in Wuhan from respiratory failure days after being discharged from hospital    Latest data from the mainland shows most new infections continue to occur at epidemic’s epicentre

COVID-19 Hospital Adds Antibody Tests as Discharge Requirement
From Thursday, a temporary “shelter hospital” in the central Chinese city of Wuhan is conducting additional tests on COVID-19 patients who have met the necessary criteria to be discharged, following reports of discharged individuals later testing positive for the novel coronavirus.

Ant Financial takes stake in Swedish fintech app Klarna News Fintech Europe Ant Financial 
Ant Financial, the fintech arm of Chinese online marketplace Alibaba, bought a small stake in Swedish payments app Klarna, the startup said on Wednesday.  Ant Financial has embarked on a series of moves to tap European consumers, as the Chinese online payments market is effectively saturated by the WeChat Pay and Alipay duopoly.

US blocks China from helm of intellectual property agency
An official from Singapore was nominated Wednesday to lead the World Intellectual Property Organization after U.S. lobbying against a Chinese candidate.

Proposed Residency Changes Spark Racist Backlash in China
Opponents of a new draft regulation say relaxing permanent residency requirements could lead to an influx of “low-quality” immigrants and jeopardize the county’s racial purity.

China adapts surveying, mapping, delivery drones to enforce world’s biggest quarantine and contain coronavirus outbreak
Shenzhen Smart Drone UAV’s drones used in surveying, mapping can lift a maximum payload of 15kg  Adaptation shows how outbreak has opened the door for innovative applications to emerge from existing tech

Huawei pleads not guilty to racketeering in beefed-up US case
Revised indictment accuses firm of stealing trade secrets from US tech companies, lying about business in North Korea and helping Iran track protesters    Chinese telecoms giant calls charges ‘unfounded and unfair’ before entering plea in federal court in New York

Why Japan is so keen to go ahead with hosting the Olympic Games, despite coronavirus threat
Japan risks massive financial losses and a political blow for Shinzo Abe’s government if the Tokyo Olympics are cancelled or postponed   The Olympics were last cancelled in 1940 after Japan invaded China and the outbreak of World War II, but the Zika virus did not stop the 2016 Rio Games

Coronavirus prompts Beauty Dusseldorf to postpone until September
The cosmetics, wellness and spa trade event will take place six months later than planned

Sustainable Investment Forum Europe 2020 Postponed
We deeply regret having to inform you that we have taken the extremely difficult decision to postpone the Sustainable Investment Forum Europe 2020  that was due to take place on 10th March in Paris.

‘Long-distance’ haircut amid the coronavirus outbreak in China
A ‘long-distance’ haircut filmed in southwestern China’s Sichuan province has gone viral online. Hairdressers were seen attaching tools to sticks to keep a safe distance from customers.

Xi Jinping’s state visit to Japan postponed as coronavirus casts shadow over China’s agenda
It had been scheduled for early April but two nations agreed it should take place at a better time, according to Tokyo   Beijing says they will keep in close communication about timing of the long-awaited trip

China’s Belt and Road Plan Is Getting Lashed by Coronavirus
Xi Jinping’s Belt and Road Initiative has long been seen as a way to project China’s influence around the world. Now, the coronavirus is showing how the trade and infrastructure program can help export the country’s troubles.

The ‘sick man of Asia’ headline is indefensible. But China’s expulsion of reporters is the wrong answer
The Cold War created a void filled by propaganda and cultural misunderstanding for an entire generation in the US and China. The best way to prevent misunderstanding today is to improve education on both sides rather than kick out reporters

Hong Kong workers far less satisfied with employers’ support measures during coronavirus crisis than their Singapore peers, survey finds
From providing masks and sanitisers to enabling flexible work arrangements, employers across Hong Kong have been rolling out measures to protect and support staff during the deadly coronavirus epidemic. But it seems their efforts have not been enough to satisfy the average worker, if a recent survey is anything to go by.

Coronavirus: China struggling to deal with mountain of medical waste created by epidemic
Lack of treatment facilities brought into sharp focus as tonnes of discarded face masks pile up around the country   Many specialist incinerators were built during the Sars crisis and are now on their last legs, experts say

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