Archive for October, 2019

13/10/2019

Japan, Thailand and Singapore benefit as Chinese tourists skip Hong Kong over golden week

  • The likes of Saudi Arabia also saw an upswing in travellers from the mainland after the release of its new visa programme
  • But fewer Chinese tourists went abroad this year, with a 15 per cent drop from 2018 attributed to more opting to visit local historical sites
Chinese tourists take photos in front of the Imperial Palace in Tokyo, Japan. Photo: Reuters
Chinese tourists take photos in front of the Imperial Palace in Tokyo, Japan. Photo: Reuters
Fewer Chinese travellers went overseas during “golden week” this year – but for those who did, Japan, Thailand and Singapore were the top-ranked destinations as tourists from the mainland gave Hong Kong a miss, according to China’s largest travel company Ctrip.
Chinese government data showed only 6.07 million people travelled during the national holiday between October 1-6, a 15.1 per cent drop from the corresponding period last year. Analysts attributed this to Chinese tourists opting for a “staycation”, as 782 million people – a 7 per cent increase from last year – chose to celebrate the 70th anniversary of the People’s Republic of China by visiting local historical sites.
How a new wave of Indian travellers are transforming tourism in Southeast Asia
For those who did venture abroad, JapanThailand and Singapore ranked as the top three most-booked countries in Asia during the week, according to Chinese travel firm Ctrip, as tourists from the mainland skipped protest-hit Hong Kong for other destinations.
The city, now in its 19th week of anti-government protests, over the week saw a 50 per cent overall drop in tourism from last year, as well as a 47.8 per cent reduction in border crossings at the Luohu border checkpoint, according to government figures.

Japan remained the most popular destination for Chinese tourists. In the first half of 2019, the nation saw 4.5 million visitors from China, up 11.7 per cent from the same period in 2018. In order of popularity, the top-visited cities were Osaka, Tokyo, Kyoto, Sapporo and Nagoya, according to Japanese media.

Over the same week, Japan increased its sales tax from 8 to 10 per cent, but Chinese shoppers – who accounted for 37 per cent, or US$15.4 billion, of the spending by international visitors to the nation last year – were undeterred.

Japan saw the highest volume of overseas transactions over the week, according Alipay Mobile, the world’s largest mobile payment platform. The firm declined to share the exact amount Chinese tourists had spent in Japan, but reported average spending per international traveller during golden week had increased by 15 per cent to 2,500 yuan (US$350).

From Nissan sales to Tsushima tourism, trade spat with Korea hits Japan in the pocket

Alipay is operated by Ant Financial, an affiliate of Alibaba Group Holding, which owns the Post.

Japanese department stores such as Sogo and Seibu celebrated the Chinese national holiday by holding golden week events and sales at 15 different branches across the nation, with food and arts promotions targeting Chinese shoppers.

Chinese travellers to Japan want cultural experiences involving local customs such as temple tours, heritage sites and cultural events, according to Emily Guo, a researcher at Hong Kong-based marketing research firm Cherry Blossoms.

Chinese tourists visit Tiananmen Square in Beijing. Analysts say 782 million people opted for “staycations” at local historical sites over golden week this year. Photo: EPA
Chinese tourists visit Tiananmen Square in Beijing. Analysts say 782 million people opted for “staycations” at local historical sites over golden week this year. Photo: EPA

Experts say Thailand – the second-most booked country during golden week, according to Ctrip – saw many repeat travellers return to the country. The nation saw 1.03 million arrivals from China in August, up 19 per cent from 2018.

Guo said these travellers were more budget-conscious than those who travelled to Japan, and enjoyed the good value and picturesque scenery for sharing on social media.

“They have already travelled to Southeast Asia before, and are therefore looking for personalised and local experiences like interacting with Thai residents, jungle treks and food tours,” she said, adding that many are willing to spend extra on immersive experiences such as a hotel in the countryside, or on a room with a forest view.

Thailand’s tourism industry gets jitters after currency surges, visitor numbers from China fall

According to Alipay Mobile, the sale of “durian experience” packages for Chinese tourists looking to taste the spiky, pungent fruit at local farms increased by 60 per cent in Thailand and Malaysia from last year.

Shopping remained on the agenda, too. Thailand ranked second for the highest volume of overseas transactions during the week, according to data from Alipay Mobile. Most Chinese shoppers frequented duty-free shops, convenience stores and local malls, according to local press.

Singapore remained a destination of choice for tourists from the mainland. The city was among the most popular “traditional destinations” for them, according to China’s culture and tourism ministry, with others including Malaysia, Thailand, Japan, Australia, France, Italy, and Russia.

Chinese tourists visiting Singapore over golden week also seized the opportunity to check out property in the Lion City. Photo: AFP
Chinese tourists visiting Singapore over golden week also seized the opportunity to check out property in the Lion City. Photo: AFP

July saw the Lion City break its record for the number of Chinese arrivals, at close to 390,000, an unprecedented 46 per cent jump from the previous month.

Analysts have attributed this to a diversion of tourists from Hong Kong, but property agents such as Clarence Foo, associate deputy group director at OrangeTee & Tie, said some of these Chinese tourists were using the golden week as a chance to eye Singaporean real estate.

“Compared to a normal week, there were probably 15 to 20 per cent more Chinese visitors who viewed property,” said Foo, who counts Singaporean and international buyers among his clients.” They are certainly more keen on Singapore [property] now as there isn’t another comparable investment destination in Asia.”

Meanwhile, the Middle East is emerging as a popular shopping destination for Chinese tourists. According to Ctrip, Dubai saw 501,000 travellers from the mainland in the first half of 2019, an 11 per cent increase from last year.

Saudi Arabia has also experienced a surge in Chinese tourists, with 7,931 heading to the country since it launched its new instant tourist visa programme on September 27. With the new visa, which can be obtained online or upon arrival, tourists can stay in the country for up to 90 days, and unwed foreign men and women can for the first time share hotel rooms.

“Saudi Arabia has the potential to become very popular with Chinese tourists,” said Guo from Cherry Blossoms, adding that travellers from the mainland are increasingly looking for exciting new adventures. “It’s a status symbol for them to visit a country others haven’t visited before.”

Source: SCMP

12/10/2019

China’s Xi and India’s Modi discuss proposals to improve ties hit by Kashmir

MAMALLAPURAM, India, (Reuters) – Chinese President Xi Jinping said on Saturday he had a free and frank discussion with Indian Prime Minister Narendra Modi and would pursue proposals the two leaders discussed to improve bilateral ties.

Xi and Modi held several hours of one-on-one talks in a southern seaside Indian town in their second annual summit designed to break through decades of distrust between their countries over border disputes, a ballooning trade deficit and China’s close military ties with India’s arch rival, Pakistan.

“Yesterday and today we have engaged in candid discussions and as friends,” Xi said in opening remarks as the two leaders sat down for formal talks with their delegations.

“I look forward to further discussions, I may follow up on proposals discussed yesterday,” he said, without elaborating.

Ties were ruffled when India revoked the special status of the Himalayan territory of Kashmir in August, angering both Pakistan, which claims the region, and its all-weather ally China.

Modi noted in his opening remarks that he and Xi had agreed to manage their differences prudently and not let them snowball into disputes.

The neighbours are expected to move forward on a set of confidence building measures along their border including border trade, tourism and even joint military patrols to boost trust, officials said.

India and China share a 3,500 km (2,200 mile) border, over which they went to war in 1962. Its course remains unresolved despite more than 20 rounds of talks.

Modi took Xi on a personal tour of temple monuments dating back to the seventh and eighth century at Mamallapuram in southern India when regional leaders had trade ties with Chinese provinces.

India’s Foreign Secretary Vijay Gokhale said the two leaders spent nearly five hours discussing bilateral issues that have often been fraught.

The two leaders discussed economic issues, including India’s $53 billion trade deficit with China in 2018/19, and ways to tackle it, Gokhale said.

China, for its part, was expected to urge India to take an independent decision on telecom equipment maker Huawei’s bid for India’s proposed 3G network and not be swayed by U.S. pressure. The United States has asked its allies not to use Huawei equipment, which it says China could exploit for spying.

Sources told Reuters in August that China had warned of “reverse sanctions” on Indian firms engaged in business in China should India block Huawei Technologies [HWT.UL] because of U.S. pressure.

Xi will head to Nepal later on Saturday where he is expected to push for China’s further involvement in developing its infrastructure as part of his signature One Belt One Road initiative to boost trade and transport links across Asia.
Source: Reuters
11/10/2019

Spotlight: Film, yoga, smartphone industries enhance China-India links

INDIA-CHINA-FILM-YOGA-SMARTPHONE

 People practice yoga at a park in New Delhi, India, June 21, 2019. TO GO WITH: Spotlight: Film, yoga, smartphone industries enhance China-India links (Xinhua/Zhang Naijie)

by Xinhua writers Chen Jian, Zhao Xu, Zhang Xingjun

CHENNAI, India, Oct. 11 (Xinhua) — “I would like to see a lot of collaboration between creative people from China and India, making stories that people from both countries would love to see,” said Bollywood star Aamir Khan before a film-promotion trip to China in early 2018.

As one of the most recognized Indian actors in China, Khan’s biographical sports film “Dangal” raked in nearly 1.3 billion yuan (190 million U.S. dollars) in the Chinese box office in 2017, making it the highest-grossing Indian film of all time in China.

Inspired by the real journey of an Indian wrestler, Khan acted the part of a strict father who turned his daughters into world-class athletes.

From “Dangal” and “Secret Superstar” to “Hichki” and “Thugs of Hindostan,” Bollywood hits have been immensely popular among Chinese moviegoers in recent years. Older generations were impressed by Indian films like “Awara” (1951) and “Caravan” (1971), which featured spectacular song-and-dance scenes.

Khan, who has visited China several times, said he felt Chinese and Indian people have many things in common. For example, both peoples attach great importance to family, he told Xinhua.

“Many people get to know a certain country through watching their movies. Through my work, quite a few foreign viewers start to know the sorrows and happiness of ordinary Indian people,” Khan said, adding that artists can help people with different cultural backgrounds understand each other.

Bollywood actress Rani Mukerji, whose Hindi comedy-drama film “Hichki” was screened in China last year, said Chinese audience watching her film with Chinese subtitles reacted similarly to Indian fans.

“You realize that you don’t have to know the language to connect with the film. I think that’s what makes movies so, so special … If the emotions are universal, it can connect anywhere,” she told Xinhua in an interview earlier this year.

In “Hichki,” Mukerji played the leading role of an aspiring teacher with Tourette Syndrome, who must prove herself by educating a group of underprivileged students.

Taking note of Bollywood’s developed industrial system and China’s huge film market, the Indian actress is also looking forward to India-China film co-productions.

“I am actually very keen to do India-China co-productions where I can be part of a Chinese film or Chinese actors can be part of Indian films,” she said.

YOGA IN CHINA

Before Yu Songsong, a young man from southwest China’s Guizhou Province, started to practice yoga, he knew little about India, where the practice originated.

Having spent the last six years learning yoga, he is attracted by the yoga culture and eager to travel to India.

Yu used to suffer from an emotional disorder. “It was yoga that turned me around. I was no longer lost. I’ve found a direction for my life,” he said.

Yu started to practice yoga when he was a freshman and became a vegetarian. “The physical and mental practices relieved me of psychological distress,” he said.

Through yoga, Yu is engaging in a comparative study in the philosophies of China and India, two ancient civilizations in the world.

“In the class, we discuss and compare the traditional Chinese theory that ‘man is an integral part of nature’ and the Indian idea that ‘the Buddha and I are one.’ Through this, we explore the similarities that underline the culture and civilizations of the two countries,” he said.

The China-India Yoga College, established at Kunming’s Yunnan Minzu University in June 2015, is China’s first yoga college. Fifty branches are planned to be opened in China’s major cities in the next three to five years, and are attracting batches of Indian yoga teachers to China, with 38-year-old Subbulakshmi Velusamy being one of them.

Velusamy arrived in Kunming in late 2015 and quickly adapted to the climate and life there. She said the local diet is light, which is very palatable to yoga practitioners and vegetarians.

Velusamy said teaching yoga in Yunnan was a wonderful experience as the Chinese people around her were very helpful and kind.

“They often chat with me after class and invite me to parties,” she told Xinhua in an earlier interview.

Velusamy said she was eager to learn about the ancient Chinese civilization. At the same time she introduced yoga to more Chinese as a unique and valuable Indian cultural asset.

Indian Prime Minister Narendra Modi has played a significant role in spreading yoga at home and abroad. He was instrumental in urging the United Nations to mark June 21 as International Yoga Day.

“Beyond exercise and health, yoga is about life, self-awareness and a connection with your soul. So I expect my students to understand their consciousness in today’s technologically-driven world,” said Rama Rathore, a yoga trainer in New Delhi.

CHINESE SMARTPHONE BRANDS

Smartphones are becoming easily available to everyone thanks to their affordable prices. With the exploding growth of Internet data usage and its access across the country, millions of Indians are now connected with the world thanks to their smartphones.

“It is the people’s window to the world and the growth opportunity in this sector is huge,” said Saifi Ali, a head researcher associated with a leading telecom operator located in Gurgaon on the outskirts of New Delhi.

“India has overtaken the United States in the smartphone market,” he said.

Meanwhile, Chinese smartphone brands, such as Xiaomi, Oppo and Vivo, have been successful in India’s fast growing market, according to global market research firm Canalys.

Xiaomi has been the leading smartphone brand in India for eight consecutive quarters, with a 28.3-percent market share for the second quarter of this year.

Xiaomi has become the first brand in India to sell more than 100 million smartphones within a span of five years, since the company began operations in the country in 2014.

Jobs and technical training provided by the Chinese companies have helped many Indian workers to enhance their technical skills and earn good money.

Neeraj Sharma, 25, is an Indian employee at MCM, a Noida-based Chinese company of smart terminal equipment. Sharma said he has learned a lot from the company and his technical skills have also improved.

“From here I started learning practical knowledge. Everything I know about the technology we are using here for SMT (Surface Mount Technology) and also in assembly is from this company. I started from the very lowest designation and right now I am working as a floor-in-charge there,” he told Xinhua in a recent interview.

Thanks to his stable income from MCM, Sharma, who is from the northern Uttar Pradesh state, has fulfilled his dream of buying a house in Noida, outside New Delhi.

“I came here, so at that time I had planned to buy a house here for my family. Right now I have already bought a small house. Maybe further in the future I will have a flat,” he said.

Source: Xinhua

11/10/2019

Vice premier calls for solid progress in Xiongan New Area development

CHINA-HEBEI-XIONGAN-HAN ZHENG-RESEARCH TRIP (CN)

Chinese Vice Premier Han Zheng, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, inspects the progress of local relocation work during his research trip in Xiongan New Area, north China’s Hebei Province, Oct. 9, 2019. (Xinhua/Zhang Ling)

XIONGAN, Oct. 10 (Xinhua) — Vice Premier Han Zheng has called for solid progress in the high-quality development of the Xiongan New Area in north China’s Hebei Province.

Han, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, made the remarks during a research trip to Xiongan Wednesday.

Hailing the smooth progress in the development of the new area, Han said authorities should provide more incentives to guide high-quality resources including education and healthcare into the area, while efforts should be made to make Xiongan more intelligent.

Calling the building of the area “a strategy that will have lasting importance for a millennium to come and a significant national event,” Han stressed high standards and solid progress in the area’s development.

Environmental protection and treatment should be a priority while particular attention should be given to improving the ecology of the Baiyangdian Lake in Xiongan, he said.

Reforms and innovation should be carried out in the new area, which will gradually be granted provincial-level authority for economic and social management, Han added.

China announced plans in 2017 to establish the Xiongan New Area, located about 100 km southwest of Beijing. It is a key move in pushing the coordinated development of the Beijing-Tianjin-Hebei region.

Source: Xinhua

10/10/2019

Taiwan leader rejects China’s ‘one country, two systems’ offer

President Tsai Ing-wen also vowed in a National Day speech to defend Taiwan’s sovereignty, saying her government would safeguard freedom and democracy as Beijing ramps up pressure on the self-ruled island it considers a wayward province.

Tsai, who is seeking re-election in January amid criticism of her policy towards China, referred to the arrangement for the return of the former British colony of Hong Kong to Chinese rule in 1997 as a failure.

Hong Kong has been hit by months of anti-government protests triggered by widespread resentment of what many city residents see as relentless efforts by Beijing to exert control of their city despite the promises of autonomy.

China has proposed that Taiwan be brought under Chinese rule under a similar arrangement, but Tsai said Beijing’s policies towards the island were a danger to regional stability.

“China is still threatening to impose its ‘one country, two systems’ model for Taiwan. Their diplomatic offensives and military coercion pose a serious challenge to regional stability and peace,” Tsai said.

“The overwhelming consensus among Taiwan’s 23 million people is our rejection of ‘one country, two systems,’ regardless of party affiliation or political position.”
Taiwan’s National Day, marking the anniversary of the start of a 1911 uprising that led to the end of dynastic rule in China and the founding of a republic, was celebrated in Taipei with singing, dancing and parades.
Cold War hostility between the island and the mainland had eased over the past decade or so as both sides focused more on expanding business ties, but relations have cooled considerably since Tsai took office in 2016.
China suspects Tsai and her independence-leaning Democratic Progressive Party of pushing for the island’s formal independence, and this year threatened it with war if there was any such move.
Tsai denies seeking independence and reiterated that she would not unilaterally change the status quo with China.

FLASHPOINT

Despite her assurances, Beijing has stepped up pressure on the island to seek “reunification” and backed up its warnings by flying regular bomber patrols around it.

Beijing also says Taiwan does not have the right to state-to-state relations and is keen to isolate it diplomatically.

Seven countries have severed diplomatic ties with the Taiwan and switched allegiance to Beijing since Tsai coming to power. It now has formal diplomatic ties with just 15 nations.

But Tsai said Taiwan was undaunted.

“The determination of the Taiwanese people to embrace the world has never wavered,” she said, adding that Taiwan must work with “like-minded countries” to ensure peace and stability across the Taiwan Strait.

Tsai said under her watch Taiwan has boosted its combat capabilities with the purchase of advanced weapons and development of home-made aircraft.

Taiwan unveiled its largest defence spending increase in more than a decade in August, aiming to purchase more advanced weapons from overseas.

The island has long been a flashpoint in the U.S.-China relationship.

In July, the United States approved the sale of an $2.2 billion worth of weapons to Taiwan, angering Beijing.

The United States has no formal ties with Taiwan but is bound by law to help provide it with the means to defend itself.

Source: Reuters

09/10/2019

Xi meets Pakistani PM, calls for forging closer community of shared future

CHINA-BEIJING-XI JINPING-PAKISTANI PM-MEETING (CN)

Chinese President Xi Jinping meets with Pakistani Prime Minister Imran Khan at the Diaoyutai State Guesthouse in Beijing, capital of China, Oct. 9, 2019. (Xinhua/Liu Weibing)

BEIJING, Oct. 9 (Xinhua) — Chinese President Xi Jinping on Wednesday met with Pakistani Prime Minister Imran Khan, vowing to work jointly to strengthen strategic coordination and pragmatic cooperation so as to forge a closer China-Pakistan community of shared future in the new era.

Noting the two countries as all-weather strategic cooperative partners, Xi said no matter how the international and regional situation changes, the friendship between China and Pakistan has always been unbreakable and rock-solid, and China-Pakistan cooperation has always maintained strong vitality with continuous expansion.

China has always viewed relations with Pakistan as a diplomatic priority and will continue to firmly support Pakistan on issues concerning its core interests and of major concern to it, Xi said.

This year marks the 70th anniversary of the founding of the People’s Republic of China.

“We have held a series of celebration activities, which is an opportunity for intensive patriotic education. Chinese people, nearly 1.4 billion in number, have forged a cohesive force with unprecedented patriotism, consolidating our confidence and determination to continue down the path of socialism with Chinese characteristics against all odds, run our own affairs, and stand firm in the community of nations,” Xi said.

In the past, Pakistan selflessly provided help to China in difficult times, and now that China has developed, it sincerely hopes to help Pakistan for better development, Xi said.

He called on the two sides to maintain close high-level exchanges, step up strategic communication and coordinate positions on major issues in a timely fashion.

On the China-Pakistan Economic Corridor (CPEC), Xi said the two sides should adopt a high standard, build and effectively run the existing energy projects, transport infrastructure, industrial parks and projects concerning people’s livelihoods, and make the CPEC a model for jointly building the Belt and Road Initiative.

China highly appreciates and firmly supports Pakistan’s efforts in fighting terrorism, Xi said, calling on the two sides to beef up communication and cooperation within the United Nations, the Shanghai Cooperation Organization and other multilateral mechanisms so as to jointly safeguard regional peace and stability.

Imran Khan offered his congratulations for the 70th anniversary of the founding of the People’s Republic of China.

Pakistan is delighted to see China’s remarkable development achievements and is grateful to China for always adhering to principles and upholding justice and for its firm support and selfless help to Pakistan, Khan said.

“Facts have shown that China is Pakistan’s all-weather strategic cooperative partner and the two countries’ friendship enjoys popular support,” he said, hoping to continue strengthening exchanges, coordination and cooperation with China, and advancing the construction of the CPEC so as to make it a paradigm of the Belt and Road Initiative.

He also pledged to continue to firmly advance counter-terrorism efforts so as to safeguard security and stability.

Khan briefed Xi on Pakistan’s views on the Kashmir situation, hoping to avoid deterioration of the situation, saying that Pakistan values and appreciates China’s objective and unbiased position.

Xi told Khan that China is paying close attention to the Kashmir situation and the facts are clear.

“China supports Pakistan to safeguard its own legitimate rights and hopes that the relevant parties can solve their disputes through peaceful dialogue,” Xi said.

Source: Xinhua

09/10/2019

China Focus: Xi’s trip to India, Nepal to inject new impetus into ties

BEIJING, Oct. 9 (Xinhua) — Chinese President Xi Jinping’s upcoming trip to India and Nepal is expected to inject new impetus into China’s relations with the two countries, an official said here Wednesday.

The Chinese Foreign Ministry announced earlier in the day that at the invitation of Indian Prime Minister Narendra Modi and Nepali President Bidhya Devi Bandari, President Xi will attend the second informal meeting with Modi and pay a state visit to Nepal from Oct. 11 to 13.

This will be Xi’s first overseas trip after the grand celebration of the 70th anniversary of the founding of the People’s Republic of China, Vice Foreign Minister Luo Zhaohui told a press briefing.

Xi’s trip will inject new impetus into China-India and China-Nepal relations, even China’s relations with South Asia, Luo said, adding that Xi’s trip will also open up new space for strengthening regional connectivity and economic and trade cooperation, set up new platforms for enhancing mutual trust and friendship among regional people, and make new contributions to world peace and prosperity.

China and India, both as developing countries and emerging economies, are the only two major countries in the world with a population of more than 1 billion, Luo said, stressing that China-India cooperation will not only benefit the development of the two countries, but also help promote world multipolarization and economic globalization, and safeguard the common interests of developing countries.

Since the first informal meeting between Xi and Modi in Wuhan last year, China-India relations have entered a new stage of steady growth, with cooperation and exchanges being carried out in various fields and differences being properly managed, Luo said.

In Chennai, Xi will have an in-depth communication with Modi on issues that have overall, long-term and strategic significance on bilateral relations, set the tune and guide the direction for future development of the ties, and speak to the world in unanimous voice, so as to inject positive energy into the world full of uncertainties.

Regarding Xi’s visit to Nepal, Luo said that Xi will be the first Chinese president to visit the South Asian country after an interval of 23 years.

Nepal, as a friendly neighbor, also serves as an important partner of China in terms of carrying out the Belt and Road cooperation, Luo said.

Since the establishment of diplomatic ties, the two countries have treated each other on an equal footing with mutual respect and support, said Luo, adding that China and Nepal have become a model of mutually beneficial cooperation between countries that are different in social system and size.

“This historic visit will definitely exert historic influence,” Luo said.

He said that Xi will attend the welcome ceremony and banquet hosted by President Bandari, meet with Bandari, hold talks with Prime Minister K.P. Sharma Oli and jointly witness the signing of cooperation documents with him.

Xi will also meet with co-chairman of the Nepal Communist Party Pushpa Kamal Dahal, also known as Prachanda, and leaders of the country’s Federal Parliament and other political party leaders, Luo added.

Leaders of the two countries will make new plans for the development of bilateral relations, ushering in a new era of fast development for China-Nepal relations, Luo said.

This will also consolidate political mutual trust and foundation of public opinions for friendship between the two countries, push forward high quality construction of the Belt and Road, speed up building an interconnectivity network across the Himalayas, and inject new impetus into pragmatic cooperation in various areas between the two countries, Luo said.

Source: Xinhua

09/10/2019

Technology, not China, can be blamed for regional job losses in developed countries, IMF finds

  • Competition from China is not the primary reason for regional job losses in rich countries, new IMF research finds
  • Study finds technological advancement is bigger driver of unemployment, undermining populist argument China is stealing manufacturing jobs
The IMF said automation displaced more jobs in rich countries than China’s growing productivity. Photo: SCMP
The IMF said automation displaced more jobs in rich countries than China’s growing productivity. Photo: SCMP

Automation rather than market competition from China can be blamed for regional job losses suffered in developed countries, including American rust belt states, according to new research by the International Monetary Fund released on Wednesday.

“Increases in import competition in external markets associated with the rise of China’s productivity do not have marked effects on regional unemployment,” the Washington-based fund said in an academic paper. “Only technology shocks tend to have lasting effects, with even larger unemployment rises for vulnerable lagging regions.”

The paper, which looked at regional disparities within advanced countries, undermines a key argument pushed by US President Donald Trump in the ongoing trade war

 between Washington and Beijing – that China has been stealing American technology and jobs.
Although the research did not mention Trump, the IMF said the argument that market competition displaced jobs was flawed as imports from China could only cause job losses in the near term and such impact “quickly abates”.

The US goods trade deficit with China hit a record of US$419.2 billion in 2018, which the Trump administration has blamed for a decline in US manufacturing jobs.

In the paper, the IMF classified a region as “lagging” if two conditions were met – initial real gross domestic product (GDP) per capita was below the country’s median in 2000, and the region’s average growth between 2000 to 2017 was below average.

Labour productivity tended to be lower and employment in the agriculture sector higher in lagging regions, the IMF said. Within the United States, per capita GDP in the state of New York is 100 per cent higher than in Mississippi, parts of which are considered within the rust belt.

While increases in import competition tended to reduce labour force participation after one year, this impact faded quickly and did not have significant effects on regional unemployment on average, IMF analyst Weicheng Lian said.

The impact of technology was more far-reaching, however, with researchers pinpointing it as the main driver of rising unemployment in lagging regions.

Automation pressures

translate into a decline in the cost of machinery and equipment, leading to more persistent rises in unemployment and declines in labour force participation in lagging regions, compared with less vulnerable regions, the study said.

Lian said that poorer regions tend to specialise in agriculture and manufacturing industries rather than high productivity service sectors such as information technology, communications and finance.
“We find that a negative technology shock … raises unemployment in all regions that are more vulnerable to automation, but lagging regions are particularly hurt,” she said.
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09/10/2019

US imposes China visa restrictions over Uighur issue

Uighur protesters demonstrating in the US in FebruaryImage copyright GETTY IMAGES
Image caption Protests calling for Uighur freedom have been happening all year

The US has said it will impose visa restrictions on Chinese officials accused of involvement in repression of Muslim populations.

It follows the decision on Monday to blacklist 28 Chinese organisations linked by the US to allegations of abuse in the Xinjiang region.

US Secretary of State Mike Pompeo said the Chinese government had instituted “a highly repressive campaign”.

China has dismissed the allegations as groundless.

In a statement, Mr Pompeo accused the Chinese government of a string of abuses against Uighurs, ethnic Kazakhs, Kyrgyz Muslims and other minority Muslim groups.

These included “mass detentions in internment camps; pervasive, high-tech surveillance; draconian controls on expressions of cultural and religious identities; and coercion of individuals to return from abroad to an often perilous fate in China”.

China has rebuffed the US moves.

“There is no such thing as these so-called ‘human rights issues’ as claimed by the United States,” foreign ministry spokesman Geng Shuang said on Monday.

“These accusations are nothing more than an excuse for the United States to deliberately interfere in China’s internal affairs.”

Media caption The BBC visits the camps where China’s Muslims have their “thoughts transformed”

Visa restrictions are to be imposed on Chinese government and Communist Party officials, as well as their family members.

“The United States calls on the People’s Republic of China to immediately end its campaign of repression in Xinjiang, release all those arbitrarily detained, and cease efforts to coerce members of Chinese Muslim minority groups residing abroad to return to China to face an uncertain fate,” the US statement said.

The US and China are currently embroiled in a trade war, and have sent delegations to Washington for a meeting about the tensions later this week.

What is the situation in Xinjiang?

China has been carrying out a massive security operation in Xinjiang, in its far west, in recent years.

Human rights groups and the UN say China has rounded up and detained more than a million Uighurs and other ethnic minorities in vast detention camps, where they are forced to renounce Islam, speak only in Mandarin Chinese and learn obedience to the communist government.

But China says they are attending “vocational training centres” which are giving them jobs and helping them integrate into Chinese society, in the name of preventing terrorism.

Media caption The BBC’s John Sudworth meets Uighur parents in Turkey who say their children are missing in China

There have been increasingly vocal denunciations from the US and other countries about China’s actions in Xinjiang.

Last week, Mr Pompeo alleged that China “demands its citizens worship government, not God” in a press conference in the Vatican.

And in July more than 20 countries at the UN Human Rights Council signed a joint letter criticising China’s treatment of the Uighurs and other Muslims.

Who are the Uighurs?

Uighurs are ethnically Turkic Muslims. They make up about 45% of the Xinjiang region’s population; 40% are Han Chinese.

China re-established control in 1949 after crushing short-lived state of East Turkestan.

Since then, there has been large-scale immigration of Han Chinese and Uighurs fear erosion of their culture.

Xinjiang is officially designated an autonomous region within China, like Tibet to its south.

Source: The BBC

09/10/2019

Kashmir conflict: Woes deepen as lockdown stifles economy

Farmers thresh paddy, separating grain from chaff, during the harvest season on October 2, 2019 on the outskirts of Srinagar, India.Image copyright GETTY IMAGES

The lockdown in Indian-administered Kashmir has cost the region’s economy more than $1bn in two months, according to industry experts. BBC Hindi’s Vineet Khare reports.

Mushtaq Chai recalls the afternoon of 2 August when he received a “security advisory” from the administration. A prominent local businessman, he owns several hotels across the Muslim-majority valley in Indian-administered Kashmir.

The note warned of “terror threats” and advised that tourists and Hindu pilgrims should “curtail their visit… and return as soon as possible”.

Mr Chai, like many others, took the advisory seriously. Two years before, seven Hindu pilgrims were killed in a militant attack while returning from the Amarnath cave, a major Hindu shrine in Kashmir’s Anantnag district.

“This was the first time in Kashmir’s history that tourists and pilgrims were asked to leave,” Mr Chai says.

Indian tourists seen leaving the City during the curfew in Srinagar on 16 August 2019.Image copyright GETTY IMAGES
Image caption Tourists left Kashmir amid a curfew in August

Soon officials arrived to enforce the order, and Mr Chai and his staff made arrangements for all of the guests to leave immediately.

Days later, on 5 August, the federal government stripped the region of its special status and placed it under a communications lockdown.

Two months on, the situation is far from normal. Internet and mobile phone connections remain suspended, public transport is not easily available, and most businesses are shut – some in protest against the government, and others for fear of reprisals from militants opposed to Indian rule.

There is also a shortage of skilled labour, as some 400,000 migrants have left since the lockdown began.

What’s more, the streets are deserted and devoid of the tourist business which had supported up to 700,000 people.

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The lockdown has not come cheap.

A government official, who did not wish to be named, says they are “awaiting a financial package” from the federal government. But the Kashmir Chamber of Commerce and Industry estimates the shutdown has already cost the region more than $1.4bn (£1.13bn), and thousands of jobs have been lost.

“There are around 3,000 hotels in the valley and they are all empty. They have loans to pay off and daily expenses to bear,” says Mr Chai, sitting in his mostly empty hotel in the capital, Srinagar.

Only a handful of his 125 staff are at work. Many haven’t returned because of lack of transport – or fear. Tensions have been high in the region, and there have been a number of protests in the city.

But the situation may improve in the coming days as the government has announced that tourists will allowed in the state from Thursday.

Empty houseboats on Srinagar's Dal lake.Image copyright GETTY IMAGES
Image caption Hundreds of houseboats have been lying vacant

But it isn’t just the hotels which have suffered.

“No internet has meant more than 5,000 travel agents have lost work,” says Javed Ahmed, a travel agent himself. “The government says give jobs to the youth. We are young but jobless. We have nothing to do with politics. We want jobs.”

Srinagar’s almost 1,000 iconic houseboats have also been running empty.

“Every houseboat needs up to $7,000 a year for maintenance,” says Hamid Wangnoo from the Kashmir Houseboats Owners Association. “For many, this is the only source of livelihood.”

And it isn’t just tourism.

“More than 50,000 jobs have been lost in the carpet industry alone,” according to Shiekh Ashiq, president of the chamber of industry.

He says July to September is when carpet makers usually receive orders for export – especially overseas, so they can deliver by Christmas.

But they are unable to contact importers, or even their own employees, because of the communications lockdown.

Apples are ready to be harvested in an orchard in Shopian district of southern Kashmir valley.Image copyright GETTY IMAGES
Image caption Kashmir’s famous apple orchards have also been hit hard

In southern Kashmir, the region’s famous apples are still waiting to be plucked from the trees. But shops and cold storage units are shut, and the main apple market is empty. Last year, it did business worth $197m, local farmers say.

“I feel so much pain seeing my apples hanging from the trees that I don’t go to the orchard anymore,” says a worried apple grower, who did not wish to be named.

“Apples account for 12–15% of Kashmir’s economy, but more than half of this year’s produce has not been plucked,” says economic journalist Masood Hussain. “If this continues through October, it will have devastating consequences.”

In Srinagar, some shop owners wait outside their stores and open them for a customer before closing them hurriedly – until the next customer arrives.

One such owner says he is unhappy with the government’s decision, but he is also scared of angry locals who want him to keep his business closed.

“But how do I survive without my daily earnings?” he asked.

Media caption Two wars, a 60-year dispute – a history of the Kashmir conflict

Source: The BBC

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