Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
Beijing has lent billions of dollars to countries on the continent to build railways, highways and airports but critics say the borrowings are unsustainable
Chinese officials say the projects will pay off in the long run and host nations are well aware of their limits and needs
Illustration: Lau Kakuen
When Clement Mouamba went to Beijing last year, he had two main tasks.
The prime minister of the Republic of Congo needed to find out exactly how much his country owed to China, a number the struggling, oil-rich central African nation had until then not been able to provide the International Monetary Fund (IMF) to qualify for a bailout. He also needed to convince Beijing to restructure its debt to ensure sustainability.
The IMF had put talks for further loans on hold until Mouamba’s administration could say exactly how much it had to repay to the country’s external creditors, including China – the republic’s single largest bilateral lender – and oil multinationals such as Glencore and Trafigura.
The country, which heavily depends on oil revenue, turned to China and private oil majors for funding to run the government when in 2014 oil prices fell from a high of US$100 per barrel to as low as US$30.
The Republic of Congo has since restructured its borrowings from China, which holds about a third, or US$2.5 billion, of the Congolese debt, by extending the repayment period by an additional 15 years.
A number of other African countries struggling to service their loans from Beijing have also pursued concessions. Ethiopia has had part of its Chinese debt written off and terms relaxed for the US$3.3 billion loan it took to build its railway, while Zambia is seeking similar adjustments for its borrowings used to build airports and highways.
Critics say countries on the continent are being burdened with unrealistic levels of debt for inviable infrastructure backed and built by China without adequate transparency and scrutiny.
The biggest concern is that several African countries will be left with huge debts and grandiose infrastructure that they cannot maintain and run profitably. I liken it to borrowing money to buy a Tesla when you don’t have adequate access to electricity: Obert Hodzi of the University of Helsinki in Finland
But Chinese observers say the West must take some of the blame for the countries’ debt problems and that the support China offers will benefit the host countries in the long run.
In the early 1990s, when China began to embrace Africa again after years of isolation from the outside world, the aspiring manufacturer was at a serious disadvantage in the race for raw materials and markets for its industrial goods.
The former colonial powers of the West had already sewn up deals for many of the continent’s most lucrative and readily exploitable reserves, from fossil fuels to minerals.
China needed new strategies to convince African governments to allow it access raw materials for its industries and markets for its products to a largely unfamiliar partner.
China also wanted to challenge the dominance of the US in global trade and politics so it courted allies in Africa to help it push for political legitimacy in international institutions.
A Kenya Railways freight train leaves the port station on the Mombasa-Nairobi railway in Mombasa, Kenya, a huge project backed by China. Photo: Bloomberg
At the time, many African leaders were under fire to liberalise their economies. China’s approach was to promise not to meddle in individual country’s internal affairs and assure African countries that they could get billions in exchange for future delivery of minerals through resource-backed deals.
Beijing sold its policies that it had no conditions attached to its development finance. In the drive to drum up business, China promised affordable loans for African countries to build roads, bridges, highways, airports and power dams.
Is Kenya’s Chinese-built railway a massive white elephant?
But Beijing also pursued tied finance, ensuring that countries borrowing from China used Chinese contractors to implement the projects rather than open them up to outside bids.
In addition, many of the deals were built on weak financial, technical and environmental conditions, with Chinese state firms conducting the technical feasibility, environmental impact assessment and financial viability studies for free for projects that they also build.
For example, in Kenya, the China Road and Bridge Corporation conducted a free feasibility study that was used in the construction of the railway.
The same company was handed the contract to implement the project and is operating both the passenger and cargo train service for a fee.
Chinese companies were responsible for the construction of a rail line between Addis Ababa and Djibouti. Photo: AFP
In contrast, the World Bank and its partner institution, the IMF, demand that such studies be done by an independent consultant and not by the company that implements the project.
According to data compiled by the China-Africa Research Initiative, at the Johns Hopkins University School of Advanced International Studies, Beijing has advanced loans worth US$143 billion to African countries since 2000, levels that some critics say are unsustainable for the borrowers.
China meets resistance over Kenya coal plant, in test of its African ambitions
For many of China’s new African partners, these arrangements – from easy lending terms, to non-competitive bidding and opaque contract details – have led to new problems – problems that corrupt or poorly managed governments now share substantial responsibility.
Some critics, both in the West and in host countries, suggest there is a “debt-trap strategy” at the heart of Beijing’s push for international business and influence, but there is no evidence that China deliberately pushes other countries into debt to seize their assets or gain sway.
However, the drive for overseas contracts and big business has led some countries into difficulties with new debts, and there are question marks over the viability of many of the projects the money is funding.
Obert Hodzi, an international relations expert at the University of Helsinki in Finland, said the Addis Ababa-Djibouti railway and the Mombasa-Nairobi railway were good examples of huge projects that were financed by easy borrowing terms from China but were not sustainable and that had in turn forced the African partners to seek further Chinese help.
“The biggest concern is that several African countries will be left with huge debts and grandiose infrastructure that they cannot maintain and run profitably,” Hodzi said. “I liken it to borrowing money to buy a Tesla when you don’t have adequate access to electricity.”
Ken Opalo, a Kenyan scholar at Georgetown University in Washington, said the key issue was the inability of African countries to design projects that were actually needed for the local economies.
A road is not just a means of transport but an economic belt or corridor that will catalyse the development of the whole region: Huang Xueqing, spokeswoman for the Chinese embassy in Nairobi
“Most African countries have been willing to accept projects designed, financed, and implemented by Chinese firms,” Opalo said.
“It would be better to decouple the feasibility studies and design phases of projects from the financing. That way African governments can ensure that they are truly getting value for money.”
But Chinese officials said Beijing had invested in infrastructure largely at the request of the host countries, adding that it could take time to yield returns on the projects.
Huang Xueqing, spokeswoman for the Chinese embassy in Nairobi, said the projects were valid assets with value that would grow in time.
“So, in the long run, it is beneficial to the host countries. Just like when young people buy a house with a mortgage, they may take some debts, but they have a place to live in and have their own assets,” Huang said.
“Underdeveloped infrastructure is the bottleneck that has been holding back Africa’s development. Up to today, many African countries, although in the same continent, are not connected with direct flights, railways or even roads. You have to fly to Paris or Zurich in order to get to some African countries.
“A road is not just a means of transport but an economic belt or corridor that will catalyse the development of the whole region.”
Huang said Beijing had advised the countries to act within their means and not to overstretch themselves when they considered projects that might not be in line with local conditions.
“When making investment decisions, the Chinese side, along with the recipient countries, carry out rigorous feasibility studies and evaluations. We do things according to our ability,” she said.
China’s leadership has also said it is paying close attention to the fiscal and financial difficulties faced by some African countries.
“As a good friend and good brother … the Chinese side is willing to lend a helping hand when needed by the African people to help them overcome temporary difficulties,” State Councillor and Foreign Minister Wang Yi said in January while on a trip to Ethiopia, adding that the debt situation in Africa is also a legacy issue.
China must allay any debt-trap fears in its dealings with Africa
“The African debt issue does not come up today, still less is it caused by the Chinese side. The African people know who are the initiators of African debt.”
The West should take a lot of the blame for worsening debt problems in some African countries, according to Li Anshan, from Peking University’s Centre for African Studies.
He cited the cases of Liberia and the Democratic Republic of Congo, two countries that have had close relations with the West for many years but remain ravaged by war and poverty despite immense natural resources.
“China-Africa relations have been going on for quite some time. Is there any African country which has got poorer because of its deal with China?” Li said.
Gyude Moore, a former Liberian minister of public works whose department oversaw construction and maintenance of various public infrastructure funded and built by China, said it would be difficult to imagine that China would knowingly ensnare its partners in debt.
“China attempts to differentiate itself from Western donors by limiting non loan-related conditionality. China also practices non-interference, so how a country manages its resources, treats its people or deploy its finances were considered ‘internal’,” he said.
“So, Chinese loans are negotiated faster and place less emphasis on public financial management.”
Moore, now a visiting fellow at the Centre for Global Development, said there were trade-offs in such situations.
China focuses on sustainable projects to dismiss fears of African debt trap
“If the loans are going to be fast – the due diligence will not be as rigorous. Chinese project selection mixes political with economic considerations. So, while a project may not make as much economic sense, it may pay political dividends,” he said.
He said non-transparent processes would invite abuse, be they Chinese, Western or African.
Other observers say the question of opacity is more directly related to China’s own economic system.
Howard French, author of China’s Second Continent: How a Million Migrants are Building a New Empire in Africa, said China has very limited transparency and public accountability in its own domestic processes.
The Mombasa railway station is seen in Mombasa, Kenya, in 2018. Photo: Xinhua
“So it would be unusual to expect that China would introduce greater transparency and accountability in its dealings with African countries than it is used to at home – that is, unless African governments insist on it,” French said.
“And this is where African governance comes in. African states should insist on contract transparency but often don’t do so because that offers leaders plentiful opportunities for graft.”
David Shinn, professor of international relations at George Washington University in Washington, agreed that China’s lack of loan transparency was a huge problem and increased the risk of corruption on both the African and Chinese sides. But he also said that in some cases, African governments might have negotiated poorly.
“This is, however, the responsibility of the African government. I don’t think China is purposely trying to encourage African debts in order to gain leverage,” Shinn said.
“In fact, China is becoming more careful about its lending because it is concerned it has made too much credit available to some African countries.”
China ‘ready to talk’ about trade deal with East Africa bloc
Huang Hongxiang, director of China House, a Nairobi-based consultancy that helps Chinese in Africa integrate better, agreed, saying the Chinese government needs to communicate more about projects in Africa but African countries also have a bigger part to play in ensuring better deals.
“On commercial viability, accountability, transparency and governance, I believe the responsibility does not lie with China, the US or the West but in the hands of African countries,” he said.
Wherever the fault lies, one thing is clear when money is wasted on ill-designed projects that have little to no economic return, according to Opalo.
“The lack of planning and transparency creates default risks … [and] African taxpayers will be left holding the bag.”
This article is the third in a series examining the local impact of Chinese investment and infrastructure projects in Africa. Read part one here and part two
Chinese government advisers say Beijing has not reached direct intervention point but that could change if the violence continues
Military action would trigger international backlash, observers say, as US expresses concern over reported paramilitary movements and ‘erosion of Hong Kong’s autonomy’
Footage of trucks from the paramilitary People’s Armed Police in Shenzhen has circulated online. Photo: Handout
The unrest in Hong Kong does not yet warrant direct intervention by Beijing despite hardening public sentiment and calls for tougher action in mainland China, according to Chinese government advisers.
Shi Yinhong, an international relations expert at Renmin University and an adviser to the State Council – China’s cabinet – said China would risk damaging its ties with the United States and other major foreign powers, upsetting its own development and losing Hong Kong’s special status if it took the matter directly into its hands.
“I don’t think we need to use troops. Hong Kong police will gradually escalate their action and they haven’t exhausted their means,” Shi said, expressing a view shared by other mainland government advisers and academics.
But he warned that if the violence and chaos continued, it “won’t be too far away from reaching that point”.
A US State Department spokeswoman said the United States was “deeply concerned” about reports of paramilitary movements along the Hong Kong border and reiterated a US call for all sides to refrain from violence.
She said it was important for the Hong Kong government to respect “freedoms of speech and peaceful assembly” and for Beijing to adhere to its commitments to allow a high degree of autonomy for Hong Kong.
She said the protests reflected “broad and legitimate concerns about the erosion of Hong Kong’s autonomy”.
“The continued erosion of Hong Kong’s autonomy puts at risk its long-established special status in international affairs,” she said.
brought the city’s air traffic to a halt and triggered a huge backlash on the mainland
, where the public feel they have been wrongly targeted by the increasingly violent protesters. Many demanded the central government take action to end the chaos.
The tension deepened after US President Donald Trump, citing intelligence sources,
to the border with Hong Kong. Trump described the situation in the city as “tricky” and called on all sides to remain “calm and safe”.
Footage of trucks from the paramilitary People’s Armed Police rolling into Shenzhen began circulating online on Saturday.
Beijing ‘unlikely to intervene’ in Hong Kong as pressure mounts on police
But Shi and others said direct intervention would be too costly to China and would only be used when all other methods had been exhausted.
“As the trade war with the US goes on, Hong Kong’s importance to our financial system is getting bigger,” Shi said. “If Beijing intervenes with too much assertiveness, the US might revoke the preferential status of Hong Kong.”
He was referring to the US’ 1992 Hong Kong Policy Act which gives the city a special status. In June, American lawmakers introduced a bipartisan bill requiring the US government to examine Hong Kong’s autonomy annually to decide whether to extend the arrangement.
Losing that status could cripple the operations of many businesses based in Hong Kong, said Shen Dingli, a Shanghai-based international affairs expert.
A satellite image appears to show a close-up of Chinese military vehicles at Shenzhen Bay Sports Centre in Shenzhen. Photo: Maxar Technologies
Wang Yong, another specialist on international political economy with Peking University, agreed.
“There would be a lot of opposition from interest groups in the US. Hong Kong is the bridgehead for many multinational corporations and investors from Wall Street to get into the Chinese market,” said Wang, who also teaches at an academy affiliated with China’s Ministry of Foreign Affairs.
“Hong Kong and the Chinese government will need to handle this with extra care, so as not to give any ammunition to hawks in the United States.
“If Hong Kong is not handled properly, it could add tensions to the bilateral ties and ruin any prospect of a trade deal.”
China rejects requests for US warships to visit Hong Kong amid protests Pang Zhongying, an international relations specialist at Ocean University of China in Qingdao, said direct intervention could also damage China’s ties with other countries.
“The whole world is watching. Beijing has exercised restraint for two months and still hasn’t taken any clear action because this is not an easy choice,” said Pang, who is also a member of the Beijing-based Pangoal Institution, a think tank that advises several ministerial offices.
While some observers said Beijing was under political pressure to end the protests in Hong Kong before October 1 – the 70th anniversary of the founding of the People’s Republic, Shi said the central government would not lose patience so easily.
“National Day [on October 1] is an important time, but the Chinese government is not naive to believe there has to be peace under all heaven then,” he said.
“It’s only a bit more than a month from now, we can almost say for sure the trade war will still be on by then and a major turning point in Hong Kong is not likely to happen. But the celebration must go on.”
SEOUL (Reuters) – Top diplomats of South Korea and Japan plan to meet their Chinese counterpart in Beijing next week amid a flare-up in tension over trade and history, Seoul’s foreign ministry said on Friday.
Foreign ministers Kang Kyung-wha of South Korea, Taro Kono of Japan and Wang Yi of China will meet from Tuesday to Thursday, the ministry said. The last such gathering was three years ago.
Kang and Kono are also expected to meet separately on the sidelines of the event, for the first time since South Korean President Moon Jae-in on Thursday urged dialogue to mend ties. The ministry said the two-way talks had not yet been finalised.
Ties between the neighbors are arguably at their lowest ebb since their relationship was normalized in 1965, hit by a heated feud over the issue South Korean forced labor during World War Two which spilled over into a bitter tit-for-tat trade row.
In a speech marking Korea’s independence from Japan’s 1910-45 rule, Moon toned down his recent stringent rhetoric regarding Japan, saying Seoul would “gladly join hands” if Tokyo chose dialogue and cooperation.
At the meeting, the ministers are also expected to prepare for a summit planned later this year.
From 2008, the three countries had agreed to hold a summit every year to foster regional cooperation. But bilateral tension, including that between China and Japan, has often intervened.
“We expect the meeting will help reinforce the institutionalization and substantiate the foundation of the three-way cooperative scheme,” the ministry said in a statement.
Relations between South Korea and Japan worsened sharply after the South’s Supreme Court last year ordered Japanese companies to compensate some wartime forced laborers. Tokyo says the matter was settled by the 1965 treaty normalizing ties.
The talks come at a sensitive time ahead of the Aug. 28 date when Japan’s decision to end South Korea’s fast-track trade status takes effect, a move that prompted South Korea to follow suit.
As a countermeasure, Seoul has also warned it could consider scrapping an intelligence-sharing pact usually automatically renewed on Aug. 24 every year.
The accord, the General Security of Military Information Agreement (GSOMIA), eases three-way intelligence gathering with Washington which is pivotal in dealing with North Korea’s nuclear and missile threats.
In a separate statement, the South Korean foreign ministry expressed concern over Kono’s reported remarks that Moon should “exert his leadership” to resolve the dispute, saying they were unhelpful for stable management of two-way ties.
BEIJING/HONG KONG (Reuters) – Segway-Ninebot Group, a Beijing-based electric scooter maker, on Friday unveiled a scooter that can return itself to charging stations without a driver, a potential boon for the burgeoning scooter-sharing industry.
Ninebot said Uber and Lyft, the ride-hailing giants that are expanding into scooter-sharing, would be among the customers for the new semi-autonomous vehicles that are expected to hit roads early next year.
Gao Lufeng, Ninebot chairman and chief executive, told Reuters in an interview that AI-driven scooters, controlled remotely from the cloud, could radically improve the economics of scooter-sharing.
“The pain point for scooter operators is to better maintain the scooters at a lower cost,” he said. Currently, operators of scooter sharing fleets have to collect the machines manually for re-charging.
Formed by the 2015 combination of China’s Ninebot and U.S. transportation pioneer Segway, the company has quietly become the largest supplier for scooter-sharing companies such as Bird and Lime.
“I believe scooters will replace bicycles as the prime solution for micro-mobility,” Gao said. “It’s human nature to save energy when commuting.”
The scooter-sharing fad was triggered two years ago with the launch of Bird in California. Venture-capital investors have since poured hundreds of millions of dollars into the sector, and fleets of electric-powered scooters now operate in cities across the U.S. and Europe.
Segway-Ninebot Group has applied to list its shares on the China’s new Nasdaq-style board for homegrown tech firms, the STAR Market. The company sold 1.6 million scooters in 2018, according to a prospectus filed in April.
Lyft and Uber did not immediately respond to emailed requests for comment.
The new scooters will be priced at close to 10,000 yuan ($1,420), more than the company’s traditional scooters, which it sells to scooter companies for $100-$300.
The new machines will start road testing next month and will be largely commercialized in the first quarter of 2020.
The company also launched two self-driving delivery robots — one for outdoor delivery, the other for indoor services.
Ninebot said the unmanned delivery robots will initially serve the food delivery industry in China.
The company is in talks with food delivery operators, including Meituan Dianping and Alibaba Group’s Ele.me, to begin service by the first half of next year.
Developers say their prototype craft could dive to 1,000 metres in five minutes
Liu Kaizhou, who also worked the Jiaolong submersible, says ‘We are in uncharted water’
Professor Liu Kaizhou, who developed the autopilot for China’s manned Jiaolong submersible, says his team has designed a vessel that can move through water like a plane moves through the air. Photo: Xinhua
Chinese engineers say they are developing a radical design for a super-fast robot submersible which the project leader, who worked on the manned deep-sea vessel Jiaolong, or Sea Dragon, claims can “fly” in water like a plane travels through the air.
At 3 metres (9.8ft) long, the prototype consists of a cigar-shaped body, with a guidance system in the bow and a jet plane style rudder and a propeller in the stern.
Outriggers house batteries and two more propellers. These are attached to the body by wing-like planes that the developers said will give the vessel the kind of lift in water that takes an aeroplane into the air and back to the earth.
Developers said the prototype will be capable of 10 knots and could dive to a depth of 1,000 metres (3,281 feet) – or surface from that depth – at about three metres a second, taking about 5½ minutes.
Professor Liu Kaizhou, lead scientist of the project at the Shenyang Institute of Automation, part of the Chinese Academy of Sciences in Liaoning province, said the design had great potential.
If a traditional submarine was like an air balloon, he said, the prototype was like an aircraft. “It is technically flying, fast and freely, like a plane for the water.”
The prototype has 20 major components on board, including a computer, and communications and surveillance equipment. These were all developed and tested by the team, but getting them to work together posed some unexpected challenges, Liu said, meaning the transition to operations in a tough marine environment was some time away.
Underwater station could be a game changer, Chinese scientist says
“We aim to make the first open sea test in about a year,” he said.
The submersible can be powered by conventional batteries or a chemical engine that mixes lithium and sulphur hexafluoride to produce heated steam for electrical generators – an energy source often used by torpedoes.
Funded by the Ministry of Science and Technology from 2017, the project was driven by China’s growing ambition to become a superpower in the world’s oceans.
The team said their submersible had the potential to become the backbone of China’s search-and-rescue operations at sea, naval intelligence gathering, high-precision sea floor mapping, or to transport minerals from the seabed to the surface.
Professor Liu Kaizhou (left) with colleagues Ye Cong and Yang Bo, was instrumental in the success of China’s Jiaolong manned submersible. Photo: Xinhua
Professor Du Tezhuan, a researcher in fluid dynamics at the Institute of Mechanics of the Chinese Academy of Sciences in Beijing, said the design was a bold one but it posed the research team many hard questions.
The density of water was much higher than that of air, he said, which meant the vessel would encounter more drag and would need a strong power source.
“Without sufficient speed, the lift will be weak, and to reach high speeds, lots of energy will be needed. Flying in water is not as easy as flying in the air,” said Du, who was not involved in the project.
Why Beijing is speeding up underwater drone tests in the South China Sea
“But in theory it should work. It is worth a try.”
Liu – who led the design of the autopilot system that can take the Jiaolong to depths of more than 7,000 metres (23,000 ft) – said that after tests on the prototype were complete, other innovations were possible. These included covering the vessel with air bubbles to reduce friction.
“This technology is brand new,” he said. “We are in uncharted water and we are excited by the challenges.”
Chinese State Councilor and Foreign Minister Wang Yi (R) holds talks with India’s Minister of External Affairs Subrahmanyam Jaishankar in Beijing, capital of China, Aug. 12, 2019. (Xinhua/Zhai Jianlan)
BEIJING, Aug. 12 (Xinhua) — Chinese State Councilor and Foreign Minister Wang Yi held talks with visiting Indian Minister of External Affairs Subrahmanyam Jaishankar here on Monday.
Wang called on both sides to earnestly implement the important consensus reached by the leaders of the two countries, cherish the outcomes of the improvement of bilateral relations, further enhance mutual trust and deepen cooperation, according to a Chinese official press release.
Jaishankar said India is looking forward to the second informal meeting between the leaders of the two countries in India this year and is willing to make sure the meeting is a full success.
Both sides believe that they should safeguard their developing country status, and safeguard their rights of development and legitimate interests in the World Trade Organization.
Wang stated China’s principled position on India’s recent unilateral move on the Kashmir issue, said that China hopes India will play a constructive role in regional peace and stability, according to the press release.
Jaishankar explained India’s stance, noting that India is willing to exercise restraint and improve relations with Pakistan. India will also abide by the consensus reached with China on maintaining peace in the border and continue to work with China to properly solve the border issue through consultations, said the press release.
Later on Monday, Wang and Jaishankar co-chaired the second meeting of the China-India high-level people-to-people exchanges mechanism, agreeing to further promote the friendship between the two peoples.
Image copyright EPAImage caption Officials say about 5,000 gathered for the fourth day of protests at the airport
Hong Kong International Airport cancelled all departures on Monday, as thousands of anti-government protesters occupied and caused disruption.
Passengers have been told not to travel to the airport, which is one of the world’s busiest transport hubs.
In a statement, officials blamed “seriously disrupted” operations.
Many of those protesting are critical of the actions of police, who on Sunday were filmed firing tear gas and rubber bullets at close range.
Some protesters wore bandages over their eyes in response to images of a woman bleeding heavily from her eye on Sunday, having reportedly been shot by a police projectile.
In a statement on Monday afternoon, Hong Kong’s Airport Authority said they were cancelling all flights that were not yet checked in.
More than 160 flights scheduled to leave after 18:00 local time (10:00 GMT) will now not depart.
Arrivals already heading into Hong Kong will still be allowed to land, but other scheduled flights have been cancelled.
Officials are now working to reopen the airport by 06:00 on Tuesday, a statement said.
Some passengers expressed annoyance at the disruption. “It’s very frustrating and scary for some people,” one man from Pakistan told the BBC. “We’ll just have to wait for our next flight.”
Helena Morgan, from the UK, said she was set to return to the UK to get her exam results on Thursday. “I’m hoping we get back for them and we’re not on a flight,” she said.
But others were more understanding of the protests. “I was expecting something, given all the news,” one arrival, Gurinda Singh, told Reuters news agency.
As rumours spread that police plan to move in on protesters on Monday evening, thousands opted to leave on foot. There are large backlogs for transport back into the centre, local reports say.
The BBC’s Stephen McDonell, who is at the scene, says the airport has effectively shut down while authorities work out how to deal with the crisis.
Hong Kong’s mass demonstrations and unrest show no sign of abating, more than two months after they were sparked by a controversial extradition bill.
Beijing officials have strongly condemned Sunday’s violence and linked violent protesters to “terrorism”.
Image copyright REUTERSImage caption Many of those who gathered carried signs condemning police conduct
What happened on Sunday?
On Sunday afternoon, a peaceful rally in the city’s Victoria Park led to clashes when protesters moved out of the area and marched along a major road despite a police ban.
There were confrontations in several central districts and police used rubber bullets in an attempt to disperse the demonstrators.
In the bustling central Wan Chai district, petrol bombs and bricks were thrown at police, who responded by charging at protesters.
A number of people, including a police officer, were injured in the clashes.
Videos on social media also showed officers storming enclosed railway stations and firing tear gas.
Footage inside another station showed officers firing what appeared to be rubber bullets at close range and several police officers beating people with batons.
Media caption Violence erupts in HK train stations
Local media outlets reported that suspected undercover police officers had dressed-up as protesters to make surprise arrests.
While protests in the city have turned increasingly violent, there were no reports of arrests during the three previous days of the airport sit-in.
What has the reaction been?
On Monday the Chinese authorities, who have not yet physically intervened to quell the unrest, used their strongest language yet to condemn violent protesters.
“Hong Kong’s radical demonstrators have repeatedly used extremely dangerous tools to attack police officers, which already constitutes a serious violent crime, and also shows the first signs of terrorism emerging,” Yang Guang, a spokesman for the Hong Kong and Macau Affairs Office (HKMAO), said at a press briefing.
“This wantonly tramples on Hong Kong’s rule of law and social order.”
Demonstrations started in June in opposition to a proposed extradition bill, which would have allowed suspected criminals to be sent to mainland China for trial.
Critics said it would undermine Hong Kong’s legal freedoms, and could be used to silence political dissidents.
Although the government has now suspended the bill, demonstrators want it to be fully withdrawn.
Their demands have broadened to include calls for an independent inquiry into alleged police brutality, and an amnesty for all arrested protesters.
Hong Kong is part of China but its citizens have more autonomy than those on the mainland.
It has a free press and judicial independence under the so-called “one country, two systems” approach – freedoms which activists fear are being increasingly eroded.
Chief executive Rupert Hogg says staff who ‘support or participate in illegal protests’ would face disciplinary action that ‘may include termination of employment’
Airline’s shares down 4.37 per cent on Monday morning to lowest level in 10 years, despite it complying with orders on Friday from China’s aviation authority
Cathay Pacific moved over the weekend to comply with new orders from China’s aviation authority. Photo: Bloomberg
Cathay Pacific has warned that it would sack staff taking part in illegal protests in Hong Kong, saying it would take a “zero tolerance” approach, as its shares slumped to their lowest level in 10 years in morning trading on Monday.
In a note to staff on Monday, chief executive Rupert Hogg said staff who “support or participate in illegal protests” would face disciplinary action that “could be serious and may include termination of employment”.
His warning indicated an escalation by the company, under pressure to crack down on employees after China’s civil aviation regulator said on Friday that airline staff supporting the Hong Kong protests would be barred from flights going to, from or through mainland China.
“We are all obliged to abide by law at all times,” Hogg said. “Cathay Pacific Group has a zero-tolerance approach to illegal activities. Specifically, in the current context, there will be disciplinary consequences for employees who support or participate in illegal protests. These consequences could be serious and may include termination of employment.”
By noon in Hong Kong, the stock had fallen 4.37 per cent to HK$9.85 (US$1.26), its lowest level since June 2009. Losses dragged the carrier’s parent company Swire Pacific down 5.4 per cent to HK$77.50, making it the worst performer on Hong Kong’s stock market during morning trading.
This was the lowest price since October 2018 for Swire, which owns 45 per cent of the airline. Air China, which owns 22.7 per cent of Cathay, also fell 1.53 per cent in Hong
On Friday, the Civil Aviation Administration of China (CAAC) told Hong Kong’s flagship carrier that any staff members who had taken part in what it called “illegal protests”, “violent actions” and “overly radical activities” would not be allowed to fly to or from the mainland, in a first warning shot at a Hong Kong-based corporate giant.
The CAAC also said that the airline would have to submit identification details of all crew operating all services using mainland China airspace, and that flights with unapproved crew lists would be barred. It gave the airline until Thursday to submit a detailed plan to improve its procedures.
Anti-extradition bill protesters join a sit-in protest at Hong Kong International Airport on Sunday. Photo: Reuters
Cathay Pacific had earlier said it would not stop staff members from taking part in demonstrations.
On Wednesday, Cathay Pacific chairman John Slosar said the company would not rein in staff for openly supporting the protests. “We certainly wouldn’t dream of telling them what they have to think about something,” Slosar said.
But in his second statement in two days in relations to the CAAC’s sanctions, Hogg said the “actions and words” of staff outside of work hours could have a “significant effect on the company”, adding that the actions of a few of Cathay’s 34,000 employees would be seen as a company position.
He also asked staff to not “support or participate” in the illegal protest at the airport, saying the carrier was concerned that the protests could become disorderly and violent.
No flights by Cathay Pacific, nor by its subsidiaries Cathay Dragon or HK Express, were delayed or cancelled on Saturday or Sunday, the company said.
The CAAC’s move was widely seen as a clear warning to Hong Kong’s business community to toe Beijing’s line to pressure ongoing anti-government protests in the city that have been taking place for over two months.
Despite the airline acting over the weekend to comply with the rules, Chinese state media continued to put pressure on the company.
Global Times, a tabloid associated with Communist Party mouthpiece People’s Daily, said on Sunday the airline had still not allayed all concerns despite its adjustments to comply with the ruling.
Carrie Lam’s remarks about Beijing’s sovereignty ‘add fuel to the fire’, analysts warn
“These are only small steps [showing] that Cathay Pacific is heading towards the right direction, and their sincerity will need to be tested over time,” the tabloid said in an opinion article on Sunday.
It said 2,000 company staff joined citywide strikes last Monday, and cited the case of a pilot who was arrested and charged with rioting during a demonstration on July 28.
“Cathay Pacific has touched on this behaviour lightly, which has a huge impact on the trust the industry and the public have towards the company,” the article said.
State broadcaster CCTV published a short video on Weibo on Monday morning of its anchor issuing further warnings to the airline, saying there were reports of staff continuing to join “illegal gatherings” and asking tourists not to go to Hong Kong.
“If this continues, it’s not a matter of whether or not people would still want to come to Hong Kong, but whether they would still want to be on your airline,” Kang Hui said in a one-minute video.
“Let me send a friendly reminder: one would not be in trouble had one not asked for it,” Kang said, in Mandarin and then in English, translating the popular Chinese internet meme phrase “No zuo no die” and claiming some Cathay Pacific staff pretended not to understand Mandarin. Cantonese is the dominant language in Hong Kong.
Elsewhere, the company announced that two of its airport employees
for leaking passenger information about a Hong Kong police soccer team who had been on a flight to mainland China. It has also suspended the pilot who was among 44 people charged with rioting on July 28.
Although the company does not clearly specify its country-by-country performance, China and Hong Kong produced half of all its 2018 revenue – HK$57 billion of a total of HK$111 billion. A fifth of all the carrier’s flight are to and from the mainland.
Image copyright AFPImage caption Lekima has brought heavy rain to Taiwan
Chinese authorities have declared a red alert as a powerful typhoon heads towards the eastern coast.
Typhoon Lekima is currently battering Taiwan with winds of more than 190km/h (120mph) and is due to make landfall in China’s Zhejiang province on Saturday.
Emergency teams have been deployed to the region to guide relief work, China’s emergency ministry said.
Thousands of people further up the coast in Shanghai have been warned to prepare to evacuate.
Lekima, which is the ninth typhoon so far this year, strengthened into a super typhoon late on Wednesday, but Taiwanese authorities have since downgraded it to a regular typhoon.
Flood warnings have been issued for eastern sections of China’s Yangtze River and the Yellow River until Wednesday. The provinces of Jiangsu and Shandong are also on alert.
Cruise liners have been told to delay their arrival in Shanghai and some train services have been suspended over the weekend.
Beijing has also cancelled some trains heading to and from the Yangtze delta region.
Lekima is one of two typhoons in the western Pacific at the moment. Further east, Typhoon Krosa is spreading heavy rain across the Northern Mariana Islands and Guam. It is moving north-west and could strike Japan some time next week, forecasters said.
Media caption BBC Weather’s Sarah Keith-Lucas on typhoons Lekima and Krosa
Lekima was passing the north of Taiwan on Friday, causing flight cancellations and the closures of schools and offices.
Power was cut to more than 40,000 homes and the island’s high speed rail service was suspended north of the city of Taichung, local media reported.
The huge storm came a day after eastern Taiwan was rattled by a 6.0 magnitude earthquake. Experts said the risks of landslides triggered by the tremor were made more likely by the typhoon dumping up to 900mm (35 inches) of rain on Taiwan’s northern mountains.
Media caption The 6.0 earthquake in Taiwan was caught on cat cam
Lekima also brought heavy rain and high winds to south-west Japan on Friday, cutting power to about 14,000 homes, broadcaster NHK reported.
China’s weather bureau said Lekima was expected to have weakened further by the time it made landfall. The country has a four-stage colour-coded warning system, with red representing the most severe weather.
Security forces shown tackling ‘demonstrators’ wearing black shirts
‘Anti-mob’ tactics prepare forces for the 70th anniversary of the People’s Republic
Shenzhen police broadcast live footage of a security exercise involving 12,000 officers rehearsing anti-riot drills. Photo: Weibo
More than 12,000 police officers assembled in Shenzhen in the southern Chinese province of Guangdong on Tuesday for a drill that included anti-riot measures similar to those seen on the streets of Hong Kong.
The drill was part of security preparations for the 70th anniversary of the People’s Republic of China on October 1, Shenzhen police said on the force’s Weibo newsfeed.
“A drill will be held to increase troop morale, practise and prepare for the security of celebrations, [and] maintain national political security and social stability,” police said.
China mobilises 190,000 police officers to prepare for 70th anniversary celebrations
In live videos of the police drills shown on the Yizhibo network, officers in body armour, helmets and shields confronted groups of people in black shirts and red or yellow construction safety helmets – similar to those worn by Hong Kong protesters – who were holding flags, banners, batons and wooden boards.
Global Times
✔@globaltimesnews
Shenzhen #police drill attracted unusual attention as it features scenarios that resemble the ongoing riots in #HongKong. #香港http://bit.ly/2YobnJc (Video: Shenzhen News Radio)
One of the banners read “return my hard-earned money” – a slogan often used by migrant workers in protest against unpaid salaries.
“The practice is complete with mature anti-mob tactics. The police forces can present an anti-mob formation, which is flexible, suitable for different situations, with accurate aim and effective control,” a narrator said during the live broadcast.
As the drill escalated and more “rioters” were deployed, police fired tear gas and smoke covered the training ground.
A few minutes later, the rioters fired home-made gas bombs then set bogies alight and drove them at the police lines. The officers changed formations and pressed the rioters, making arrests. Police handlers and their dogs were also on the scene.
A blazing bogie is driven towards police lines during Shenzhen police’s anti-riot exercise. Photo: Weibo
Other drills included anti-smuggling and search-and-rescue exercises involving personnel from the People’s Liberation Army.
The drill was presented as preparation for the 70th anniversary celebrations but it came amid continued violence in the streets of Hong Kong and two incidents of the Chinese national flag being thrown into Victoria Harbour.
Hong Kong has been engulfed in two months of turmoil stemming from opposition to the now-suspended extradition bill.
Police handlers and their dogs were deployed against people dressed like Hong Kong demonstrators. Photo: Weibo
“Is this hinting at Hong Kong?” a commenter on the Shenzhen police Weibo thread asked.
“We are doing drills today, and they can enter into real practice in Hong Kong in the future. We can send thousands of anti-mob squads over and strike hard at the radical traitors, those Hong Kong independence supporters,” another user said.
Since protests escalated in Hong Kong, Beijing has reiterated its “unflagging support” for embattled Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor and her administration to take lawful action to restore order, and warned that the city was entering “a most dangerous phase” with violence on the streets.
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