Archive for ‘businesses’

09/04/2020

Japan’s economy faces extreme uncertainty as coronavirus spreads: central bank head

TOKYO (Reuters) – Uncertainty over Japan’s economic outlook is “extremely high” as the coronavirus pandemic hits output and consumption, central bank Governor Haruhiko Kuroda said, stressing his readiness to take additional monetary steps to prevent a deep recession.

While aggressive central bank actions across the globe have eased financial market tensions somewhat, corporate funding strains were worsening, Kuroda told a quarterly meeting of the Bank of Japan’s regional branch managers on Thursday.

“The spread of the coronavirus is having a severe impact on Japan’s economy through declines in exports, output, demand from overseas tourists and private consumption,” he said.

Japan recorded 503 new coronavirus infections on Wednesday – its biggest daily increase since the start of the pandemic – as a state of emergency took effect giving governors stronger legal authority to urge people to stay home and businesses to close.

In contrast to stringent lockdowns in some countries, mandating fines and arrests for non-compliance, enforcement will rely more on peer pressure and a deep-rooted Japanese tradition of respect for authority.

The balancing act underscores the difficulty authorities have in trying to contain the outbreak without imposing a mandatory lockdown that could deal a major blow to an economy already struggling to cope with the virus outbreak.

Hideaki Omura, the governor of the central Japan prefecture of Aichi, said he would declare a state of emergency for his prefecture on Friday.

Omura said Aichi, which includes the city of Nagoya and hosts Toyota Motor Corp, was talking with the central government about being included in the national state of emergency as well, but felt he could not wait any longer to restrict movement.

“Looking at things the past week and watching the situation – the rise in patients, the number without any traceable cause – we judged that it was a very dangerous situation and wanted to make preparations,” he told a news conference.

Even with less stringent restrictions compared with other countries, analysts polled by Reuters expect Japan to slip into a deep recession this year as the virus outbreak wreaks havoc on business and daily life.

Shares of Oriental Land Co (4661.T) fell on Thursday after the operator of Tokyo Disneyland said it would keep the amusement park shut until mid-May.

Entertainment facility operator Uchiyama Holdings (6059.T) said it was closing 43 karaoke shops and 11 restaurants until May 6.

“For the time being, we won’t hesitate to take additional monetary easing steps if needed, with a close eye on developments regarding the coronavirus outbreak,” Kuroda said.

Kuroda’s remarks highlight the strong concern policymakers have over the outlook for Japan’s economy and how companies continue to struggle to generate cash, despite government and central bank promises to flood the economy with funds.

At its policy meeting later this month, the BOJ is likely to make a rare projection that the world’s third-largest economy will shrink this year, sources have told Reuters.

The BOJ eased monetary policy in March by pledging to boost purchases of assets ranging from government bonds, commercial paper, corporate bonds and trust funds investing in stocks.

The government also rolled out a nearly $1 trillion stimulus package to soften the economic blow.

Source: Reuters

08/04/2020

Internet giant Tencent pledges to invest in Wuhan as city emerges from coronavirus lockdown

  • Wuhan, where the first cases of the novel coronavirus were detected, is ending a 76-day lockdown
  • A day before the lockdown was fully lifted, Tencent announces a slew of initiatives focused on helping to revive the digital industry in the city
Passengers leaving Wuhan city are pictured at the Hankou Railway Station in Wuhan city, central China's Hubei province, on Wednesday morning, April 08, 2020. Photo: SCMP/Simon Song
Passengers leaving Wuhan city are pictured at the Hankou Railway Station in Wuhan city, central China’s Hubei province, on Wednesday morning, April 08, 2020. Photo: SCMP/Simon Song
A day before China lifted a months-long lockdown of Wuhan city, the initial epicentre of the coronavirus pandemic, Chinese internet giant Tencent Holdings pledged to invest in digital government, online education and artificial intelligence (AI) in the city, among other fields.
“During the epidemic, Tencent has been supporting Hubei and Wuhan’s fight against the virus through funds and technology,” the company best known for its gaming business said in a statement posted on Tuesday on WeChat. “In the future, we will also fully support Wuhan’s post-pandemic reconstruction and continue to support the development of Wuhan’s digital industry.”
China’s major tech companies have played a big role in the fight against the coronavirus, and are now playing their part in the economic recovery of Wuhan and other areas that have suffered under extended travel restrictions and business closures.
Last week, China’s biggest e-commerce services providers Alibaba Group Holding
JD.com

and Pinduoduo each announced their own initiatives to help revive sales of farm goods from Hubei as the province emerges from its months-long lockdown.

Popular mobile payments app Alipay also created a dedicated section for Wuhan merchants to allow users to buy from merchants in the city, and offered loans to small local merchants in need of financial support, according to an Alipay statement. Alipay is operated by Ant Financial, an affiliate of Alibaba, which owns the South China Morning Post.
How tech has helped China in its public health battle with coronavirus
23 Mar 2020

Wuhan, an industrial powerhouse for the steel, semiconductors and automotive sectors, is emerging from an unprecedented lockdown which began on January 23 and prevented people from moving in and out of the city.

Since restrictions began easing gradually in late March, business activity has shown signs of recovery: Tencent’s mobile payment platform WeChat Pay recorded a 162 per cent increase in offline transactions in a 10-day period from March 25, compared to the same period the previous month, according to a separate statement by Tencent on Wednesday.

Searches for “work resumption certificates” – which businesses need to submit to local authorities to prove their staff can safely restart work – also increased 320 per cent on Baidu, China’s biggest search engine, in the past month, Baidu said in a report on Wednesday.

Tencent declined to provide specific details regarding the size of its latest investment in Wuhan or a timeline for its implementation, but said in the statement that it will involve closer cooperation with city authorities in the areas of digital government, education, smart mobility, AI and cybersecurity to help the city with its digital industries.

Among these initiatives, it will push ahead with a plan to build a headquarters focusing on digital industries in Wuhan, specifically digitalisation for the government and smart city initiatives.

It will also establish a base in Wuhan for its online education initiatives, set up an AI lab and cybersecurity academy and build a school focusing on smart mobility in collaboration with Chinese carmaker Dongfeng Motor Corporation, the company said in the statement.

Source: SCMP

30/03/2020

Drop in China’s new coronavirus cases; none in Wuhan for sixth day

WUHAN, China (Reuters) – China reported a drop in new coronavirus infections for a fourth day as drastic curbs on international travellers reined in the number of imported cases, while policymakers turned their efforts to healing the world’s second-largest economy.

The city of Wuhan, at the centre of the outbreak, reported no new cases for a sixth day, as businesses reopened and residents set about reclaiming a more normal life after a lockdown for almost two months.

Smartly turned out staff waited in masks and gloves to greet customers at entrances to the newly-reopened Wuhan International Plaza, home to boutiques of luxury brands such as Cartier and Louis Vuitton.

“The Wuhan International Plaza is very representative (of the city),” said Zhang Yu, 29. “So its reopening really makes me feel this city is coming back to life.”

Sunday’s figure of 31 new cases, including one locally transmitted infection, was down from 45 the previous day, the National Health Commission said.

As infections fall, policymakers are scrambling to revitalise an economy nearly paralysed by months-long curbs to control the spread of the flu-like disease.

On Monday, the central bank unexpectedly cut the interest rate on reverse repurchase agreements by 20 basis points, the largest in nearly five years.

The government is pushing businesses and factories to reopen, as it rolls out fiscal and monetary stimulus to spur recovery from what is feared to be an outright economic contraction in the quarter to March.

China’s exports and imports could worsen as the pandemic spreads, depressing demand both at home and abroad, Xin Guobin, the vice minister of industry and information technology, said on Monday.

The country has extended loans of 200 billion yuan (22.75 billion pounds) to 5,000 businesses, from 300 billion allocated to help companies as they resume work, Xin said.

Authorities in Ningbo said they would encourage national banks to offer preferential credit of up to 100 billion yuan to the eastern port city’s larger export firms. The city government will subsidize such loans, it said in a notice.

VIRUS CONCERNS

While new infections have fallen sharply from February’s peak, authorities worry about a second wave triggered by returning Chinese, many of them students.

China cut international flights massively from Sunday for an indefinite period, after it began denying entry to almost all foreigners a day earlier.

Average daily arrivals at airports this week are expected to be about 4,000, down from 25,000 last week, an official of the Civil Aviation Administration of China told a news conference in Beijing on Monday.

The return to work has also prompted concern about potential domestic infections, especially over carriers who exhibit no, or very mild, symptoms of the highly contagious virus.

Northwestern Gansu province reported a new case of a traveller from the central province of Hubei, who drove back with a virus-free health code, national health authorities said.

Hubei authorities say 4.6 million people in the province returned to work by Saturday, with 2.8 million of them heading for other parts of China.

Most of the departing migrant workers went to the southern provinces of Guangdong and Fujian, the eastern provinces of Zhejiang and Jiangsu, and northeast China.

In Hubei’s capital of Wuhan, more retail complexes and shopping streets reopened.

Electric carmaker Tesla Inc has also reopened a showroom in Wuhan, a company executive said on Weibo.

Shoppers queued 1-1/2 metres (5 ft) apart for temperature checks at Wuhan International Plaza, while flashing “green” mobile telephone codes attesting to a clean bill of health.

To be cleared to resume work, Wuhan residents have been asked to take nucleic acid tests twice.

“Being able to be healthy and leave the house, and meet other colleagues who are also healthy is a very happy thing,” said Wang Xueman, a cosmetics sales representative.

Source: Reuters

29/03/2020

Coronavirus: Xi Jinping’s visit to Zhejiang sends ‘clear message’ it’s time to get the economy back on its feet, state media says

  • Chinese president is fighting ‘two tough battles’ to reboot industry and defeat Covid-19, Xinhua says
  • Choice of industrial powerhouse for official visit shows the importance Xi gives to reviving the economy, observers say
Chinese President Xi Jinping chats to workers and officials at Ningbo port in east China on Sunday. Photo: Xinhua
Chinese President Xi Jinping chats to workers and officials at Ningbo port in east China on Sunday. Photo: Xinhua
Chinese President Xi Jinping

visited the industrial powerhouse of Zhejiang province on Sunday in a move state media described as a clear message the country was ready to get the economy back on track amid the “new normal” of dealing with the coronavirus.

The trip, to Ningbo – one of the world’s busiest ports and a trade hub for eastern China – was Xi’s first outside Beijing since he visited Wuhan, the initial epicentre of the Covid-19 outbreak, earlier in the month.

As well as a visiting the port, he spoke to workers at an industrial zone for car part manufacturers, where he learned about the latest efforts to restart production, Xinhua said in a brief report.

The visit came after two months of almost total lockdown in many parts of the country that disrupted businesses, transport and people’s daily lives, and ground the economy to a near standstill.

While local transmissions of the coronavirus in China appear to be under control, Beijing has implemented strict measures to prevent imported cases, including slashing international flights and banning most foreigners from entering the country.

In a separate report, Xinhua said Xi’s visit sent “a clear message” that China was resuming its industrial production and social activities, and described the fight against the coronavirus as the “new normal”.

Reviving the economy and battling a deadly disease were Xi’s “two tough battles”, it said.

Xi’s choice of destination was a clear message that restarting the economy is a top priority. Photo: Xinhua
Xi’s choice of destination was a clear message that restarting the economy is a top priority. Photo: Xinhua
Zhejiang is something of a power base for Xi, who spent nearly five years there during his climb through the ranks of the Communist Party.

One of the country’s biggest trading hubs, the province generated 3 trillion yuan (US$423.2 billion) in foreign trade last year, or more than 13 per cent of the national total, according to official figures.

“It’s a highly export-oriented economy … which has made it crucial not only to China’s development plan but also to safeguarding the stability of the global supply chain,” Xinhua said.

Observers said Xi’s visit was evidence of Beijing’s determination to get the economy back up and running as soon as possible.

Zhao Xijun, an economics professor at Renmin University, said Ningbo was a key part of the export economy and a base for many local and foreign entrepreneurs.

“It is a clear signal that China, after getting domestic infections under control, is now prioritising economic growth,” he said.

“It also shows the country will keep developing its economy and opening up its markets.”

But hopes of a quick recovery for the Chinese economy have been dashed by the spread of the coronavirus across Europe and the United States, causing a sharp decline in demand for Chinese goods.

Xi spent five years in Zhejiang while climbing the ranks of the Communist Party. Photo: Xinhua
Xi spent five years in Zhejiang while climbing the ranks of the Communist Party. Photo: Xinhua
In a meeting on Friday, the Communist Party’s Politburo said it would step up macroeconomic policy adjustments and pursue a more proactive fiscal policy while optimising measures to control the coronavirus to speed up the restoration of production, doing whatever it could to “minimise the losses caused by the epidemic”.

“China has successfully reopened much of its economy from the extremes of the coronavirus lockdown, but now faces a new problem: an impending collapse in demand for its exports as its customers go into lockdowns of their own,” Gavekal Dragnomics said in a research report.

“That shock to industry and manufacturing employment means that China will not enjoy the hoped-for V-shaped recovery in growth.”

Source: SCMP

20/03/2020

Coronavirus: Why is India testing so little?

A visitor wears a mask as a precautionary measure against Corona virus at the Volkswagen showcasing hall during the India Auto Expo 2020 in Greater Noida, India, 05 February 2020.Image copyright EPA
Image caption The world’s second-most populous country has reported about 182 infections

“We have a simple message to all countries – test, test, test,” World Health Organisation (WHO) head Tedros Adhanom Ghebreyesus told reporters in Geneva earlier this week.

He was alluding to the coronavirus outbreak, which has killed more than 10,000 people and infected nearly 250,000 in at least 159 countries.

“All countries should be able to test all suspected cases, they cannot fight this pandemic blindfolded,” he said.

With 182 reported infections and four deaths so far, is India taking this advice seriously? Is the world’s second-most populous country testing enough?

The jury is out on this one. India had tested some 14,175 people in 72 state-run labs as of Thursday evening – one of the lowest testing rates in the world. The reason: the country has limited testing. So, only people who have been in touch with an infected person or those who have travelled to high-risk countries, or health workers managing patients with severe respiratory disease and developing Covid-19 symptoms are eligible for testing.

Why is a densely populated country with more than a billion people testing so little? The official assumption is the disease has still not spread in the community. As early “evidence” health authorities say 826 samples collected from patients suffering from acute respiratory disease from 50 government hospitals across India between 1 and 15 March tested negative for coronavirus. Also, hospitals have not yet reported a spike in admissions of respiratory distress cases.

“It is reassuring that at the moment there is no evidence of community outbreak,” says Balram Bhargava, director of the Indian Council of Medical Research (ICMR). He believes Mr Ghebreyesus’s advice is “premature” for India, and it would only “create more fear, more paranoia and more hype”.

Media caption Dr Ramanan Laxminarayan: “India’s going to be the next hot spot for this epidemic”

But experts are not so sure.

Many of them believe India is also testing below scale because it fears that its under-resourced and uneven public health system could be swamped by patients. India could be buying time to stock up on testing kits and add isolation and hospital beds. “I know mass testing is not a solution, but our testing appears to be too limited. We need to quickly expand to restrict community transmission,” K Sujatha Rao, former federal health secretary and author of But Do We Care: India’s Health System, told me.

On the other hand, say virologists, random, on-demand testing will create panic and completely strain the feeble public health infrastructure. Increased and targeted “sentinel screening” of patients suffering from influenza and diagnoses in hospitals across the country can provide a better idea of whether there is community transmission, they say. “We need focused testing. We cannot do a China or Korea because we simply don’t have the capacity,” a senior virologist told me.

In many ways, it is all about India trying to battle a pandemic with limited resources. Experts talk about the country’s success in defeating polio, combating small pox, successfully controlling the spread of HIV/Aids, and more recently H1N1 with rigorous surveillance, sharp identification of vulnerable people, targeted intervention, and an early engagement with the private sector to prevent disease spread.

Yet, coronavirus is one of the deadliest transmissible viruses in recent history. Every day lost in effective response means the looming danger of a surge in infections. India spends a paltry 1.28% of its GDP on health care, and that may begin to bite if there’s a full-blown outbreak. Partial lockdowns in many cities – shutting schools, colleges, businesses and suspending some rail transport – proves that the government fears that community transmission of the virus might have begun.

A security guard (L) takes the temperature of a patron as a preventive measure against the COVID-19 novel coronavirus before he enters a Starbucks coffee shop in New Delhi on March 17, 2020Image copyright GETTY IMAGES
Image caption The official assumption is the disease has still not spread in the community

Bracing for the inevitable, India is scaling up testing. Officials say existing labs are able to provide results in six hours and each lab has the capacity to test 90 samples a day which can be doubled. Fifty more state labs are expected to begin testing samples by the end of the week, bringing the total number of testing facilities to 122. Authorities claim that together, the labs will be able to test 8,000 samples a day – a significant scaling up. In addition, the government is planning to allow around 50 private labs to start testing, but they will take up to 10 days to procure kits. (Testing at state-run labs is free, and it is unclear whether the private labs will charge.)

Two rapid testing labs, capable of doing 400 tests a day, are expected to be operational by the end of the week. India has also placed orders for a million test kits, and will be possibly asking the WHO for a million more.

“On testing, the government response has been proportionate, taking into account scope, need and capacity,” Henk Bekedam, WHO Representative to India told me. “We recognise that laboratory networks are expanding the scope and testing and they now include patients with severe acute respiratory infection and influenza-like illness detected through the surveillance system. It would also be important to look at ‘atypical pneumonia’ cases. If they are without any distinctive cause, then they need to be considered for testing.”

A doctor seen wearing protective suit to protect himself form coronavirus epidemic in the country, at RML Hospital on March 16, 2020 in New Delhi, IndiaImage copyright GETTY IMAGES
Image caption India could be buying time to stock up on testing kits and add isolation and hospital beds

The weeks and months ahead will show whether these steps have been enough. “We cannot say India has escaped community transmission,” Mr Bhargava says candidly. And if and when there is an explosion of infections and more sick people require hospitalisation, India will face formidable challenges.

India has eight doctors per 10,000 people compared to 41 in Italy and 71 in Korea. It has one state-run hospital for more than 55,000 people. (Private hospitals are out of reach for most people). The country has a poor culture of testing, and most people with flu symptoms do not go to doctors and instead try home remedies or go to pharmacies. There’s a scarcity of isolation beds, trained nursing staff and medics, and ventilators and intensive care beds.

India’s influenza cases peak during the monsoon season, and there is no reason why the coronavirus will not make a second coming, virologists say. “Given the way it is progressing in India, it seems it is about two weeks behind Spain and three weeks behind Italy. But that’s the number of known cases. And without sufficient testing and shutting down large gatherings, the numbers could be a lot worse,” Shruti Rajagopalan, economist and a Senior Research Fellow at the Mercatus Center at George Mason University, told me.

India’s traditional neglect of public healthcare will begin to bite if the disease spreads to its teeming small towns and villages. “This is a very unique and real public health challenge,” says Ms Rao. And it’s early days yet.

Source: The BBC

07/02/2020

Coronavirus outbreak likely to hit Hong Kong, Thailand economies the hardest in Asia

  • Hong Kong and Thailand are likely to suffer most from the novel coronavirus outbreak because of close their economic ties with China
  • A drop in Chinese tourist arrivals and imports, as well as supply chain disruptions are likely to weigh on regional economy
Thailand’s economy could be one of the most affected by the coronavirus outbreak due to its close ties with China, especially in the tourism sector. Photo: Bloomberg
Thailand’s economy could be one of the most affected by the coronavirus outbreak due to its close ties with China, especially in the tourism sector. Photo: Bloomberg

Hong Kong and Thailand are likely to be the hardest hit Asian economies outside mainland China from the deadly coronavirus outbreak, according to analysts.

The 2019-nCoV, which had claimed the lives of nearly 640 people and infected more than 31,000 in mainland China by Friday, is viewed as even more damaging than the severe acute respiratory syndrome (Sars) epidemic in 2002-2003 because of prolonged factory closures and transport restrictions that have locked down many Chinese cities.

China has become more closely integrated with the rest of Asia since the Sars outbreak, meaning the disruptions to China’s industrial and export sectors, combined with a sharp drop in economic activity in the first quarter, will have significant repercussions across the region, particularly through tourism and trade, analysts said.

“A collapse in tourism arrivals from China will be the first shock wave for the rest of the region,” said Gareth Leather, senior Asia economist at Capital Economics. “Factory closures in China will affect the rest of the region by disrupting regional supply chains.”

A collapse in tourism arrivals from China will be the first shock wave for the rest of the region. Factory closures in China will affect the rest of the region by disrupting regional supply chainsGareth Leather

Hong Kong would likely be the most affected because of its status as a trade hub, its tight linkages to the Chinese economy and the sharp decline in tourism expenditure that is expected, UBS economist William Deng noted.

“Due to the risk of infection, domestic households significantly reduced such activities as dining out, shopping and entertainment,” Deng wrote in a recent note. He cut Hong Kong’s gross domestic product (GDP) growth forecast to minus 1.8 per cent for 2020, against his previous projection of a 0.5 per cent drop.

A community outbreak spread by human-to-human transmission has started in the city, said Professor Yuen Kwok-yung, a top microbiologist at the University of Hong Kong on Wednesday.

Thailand could be the next most affected due to its dependence on Chinese tourism. Outside Hong Kong and Macau, the country has the highest exposure to China as a share of GDP in the region.

China locks down Hangzhou, mega-city far from epicentre of coronavirus outbreak

ANZ Bank’s head of Asia research Khoon Goh said that the novel coronavirus could knock US$760 million from Thailand’s economy in the first quarter. Hong Kong could could see losses of US$1.4 billion. Travel services as a share of GDP were 11.2 per cent in Thailand and 9.4 per cent in Hong Kong.

“The Thai economy would expand at a slower rate in 2020 than previously forecast and much further below its potential due to the outbreak of coronavirus,” Bank of Thailand said in a statement after it slashed interest rates to a record low on Wednesday.

South Korean and Taiwanese businesses will also have negative spillover effects from the coronavirus outbreak because of supply chain disruptions and weaker consumer sentiment inside and outside China, analysts said.

South Korean car and tech companies that rely on parts from Chinese suppliers are exposed to potential production disruptions stemming from factory closures and the evacuation of Korean workers from China-based production lines, said Sean Hwang, corporate finance group analyst at Moody’s Investors Group.

Coronavirus: here are the places and airlines restricting travel to China
For instance, Hyundai Motor Company closed some if its South Korea-based plants on February 4 because of a shortage of wiring harnesses.
Korean customers are also limiting their trips to bricks-and-mortar retail stores such as E Mart and Lotte Shopping to avoid crowds amid the outbreak, potentially leading to a significant decline in revenue and earnings, Hwang said.
Although Singapore is not as closely tied to China as Hong Kong, the city state could still see a knock-on effect from China’s expected near-term downturn, as its economy has become much more integrated with the world’s second largest economy since the Sars outbreak.
The number of Chinese tourists rose six times from 568,000 in 2003 to 3.4 million in 2018, said Irvin Seah, senior economist at DBS Bank.
Coronavirus outbreak: global businesses shut down operations in China
“We expect a decline of about 1 million tourists or about SGD1 billion (US$722 million) of lost tourism receipts for every three months of travel ban,” Seah said. “We have lowered our full-year GDP growth forecast to 0.9 per cent, down from 1.4 per cent previously.”
Taiwan has banned Chinese visitors as well as foreigners who have visited Hong Kong and Macau from entering the island due the coronavirus. International cruise ships are also unable to dock on the island, which will lead to at least 112 liner visits cancelled by the end of March, affecting around 144,000 passengers, said the Taiwan International Ports Corporation.
Capital Economics’ Leather said the economic impact on Taiwan from 2019-nCoV could stand out from the rest of Asia, as it had the most exposure in value-added, intermediate exports to China – 18 per cent of GDP.
20 coronavirus infections confirmed on cruise ship in Japan, as thousands remain under quarantine
Elsewhere, Malaysia’s commodity driven trade growth this year has been threatened by the almost 20 per cent fall in crude oil prices, a decline triggered by fears that the coronavirus outbreak would dampen China’s imports. Malaysia’s purchasing managers’ index, a survey of manufacturers, dropped to 48.8 in January from 50.0 the prior month prior, data released this week showed. The drop was blamed on slowing output, with new orders dropping the most since September amid a decline in exports.
“The Bank Negara Malaysia’s surprising policy rate cut at the last meeting on 22 January, just around the time the coronavirus started to dominate headlines, tells us that the central bank is ahead of the curve in recognising the risk,” said Prakash Sakpal, Asia economist at ING Bank said.
India and Indonesia will be the least affected given the small contribution the tourism sector makes to their economies, and the low share of visitors from China, ANZ’s Goh said.
Source: SCMP
29/09/2019

China expands access to public services for travellers from Hong Kong and Macau

  • New system to enable businesses and government agencies to verify mainland-issued travel permits
The new system is expected to expand access to the public transport system on the mainland. Photo: Roy Issa
The new system is expected to expand access to the public transport system on the mainland. Photo: Roy Issa

Hong Kong and Macau residents and “overseas Chinese” may soon be able to have full access to public services on the mainland using their China-issued travel documents, state news agency Xinhua reported.

Xinhua reported on Wednesday that the National Immigration Administration was putting a platform in place to enable government agencies and businesses to verify mainland-issued travel permits for Hong Kong and Macau residents.

“As soon as the platform becomes operational, these overseas travellers can, from October, have access to 35 public services, ranging from transport, to finance, education, communications, medical care and accommodation,” the report said.

According to the report, “overseas travellers” cover Hong Kong and Macau residents and ethnic Chinese living overseas.

But it did not say why the new measures did not apply to people from Taiwan.

The administration did not respond to requests for comment on Thursday.

Will Hong Kong anti-government protests ruin city’s role in Beijing’s Greater Bay Area plan? Depends on whom you ask

The new measure appears to be part of a long-term strategy by Beijing to foster closer ties between the mainland and Hong Kong and Macau.

In the last few years, the central government has launched a host of incentives for Hong Kong and Macau residents and businesses, including opportunities in the Greater Bay Area development plan in southern China.

Ivan Zhai, executive director of the Hong Kong Chamber of Commerce in China-Guangdong, welcomed the new measure.

“If such an arrangement can be fully implemented, Hong Kong businesspeople who operate on the mainland will be thrilled,” Zhai said.

The Hong Kong business community has long lobbied for relaxation over areas such as train ticketing and hotel registration.

Zhai said that although Hong Kong and Macau residents could now book high-speed train tickets with their mainland-issued travel permits, there were few ticket machines that could automatically read the permits, complicating the process.

“There are also hotels on the mainland that can only entertain guests with Chinese identity cards and currently Hong Kong travellers can only go to hotels that are authorised to accept the mainland-issued travel permits,” he said.

China’s regulator relaxes currency conversion rules throughout Shenzhen, sharpening city’s edge in Greater Bay Area

According to the report, there will be stiff penalties for departments or businesses misusing information collected through the platform.

Zhai said Hong Kong businesspeople who travelled to the mainland often were more likely to be concerned about convenience than the risk of invasion of privacy.

“If you are a frequent traveller in China, you would have expected that the relevant departments of the Chinese government already have information about you anyway,” he said.

Source: SCMP

10/08/2019

Typhoon in eastern China causes landslide, killing 18 people

BEIJING (Reuters) – Eighteen people were killed and 14 were missing in eastern China on Saturday in a landslide triggered by a major typhoon, which caused widespread transport disruptions and the evacuation of more than one million people, state broadcaster CCTV reported.

Typhoon Lekima made landfall early on Saturday in the eastern province of Zhejiang with maximum winds of 187 km (116 miles) per hour, although it had weakened from its earlier designation as a “super” typhoon, the official Xinhua news agency reported.

Thousands of flights were cancelled in eastern China, according to the country’s aviation regulator, with most flights into and out of Shanghai’s two major airports cancelled on Saturday afternoon, their websites showed.

China’s weather bureau on Saturday issued an orange alert, its second highest, after posting a red alert on Friday, when the storm forced flight cancellations in Taiwan and shut markets and businesses on the island.

The deadly landslide occurred about 130 km north of the coastal city of Wenzhou, when a natural dam collapsed in an area deluged with 160 millimetres (6.3 inches) of rain within three hours, CCTV reported.

The storm was moving northward at 15 kph and was gradually weakening, Xinhua reported, citing the weather bureau.

High winds and heavy rains battered the financial hub of Shanghai on Saturday afternoon, and Shanghai Disneyland was shut for the day.

Nearly 200 hundred trains through the city of Jinan in Shandong province had been suspended until Monday, Xinhua reported.

More than 250,000 residents in Shanghai and 800,000 in Zhejiang province had been evacuated due to the typhoon, and 2.72 million households in Zhejiang had power blackouts as strong wind and rain downed electricity transmission lines, state media reported.

Some 200 houses in six cities in Zhejiang had collapsed, and 66,300 hectares (163,830 acres) of farmland had been destroyed, CCTV said.

The storm was predicted to reach Jiangsu province by the early hours of Sunday and veer over the Yellow Sea before continuing north and making landfall again in Shandong province, CCTV said.

Coastal businesses in Zhejiang were shut and the Ministry of Emergency Management warned of potential risk of fire, explosions and toxic gas leaks at chemical parks and oil refineries.

Source: Reuters

05/08/2019

Celebrities, businesses and school take patriotic stand after Chinese flag protest in Hong Kong

  • Analysts say mood is shifting in mainland China as demonstrators ‘cross a line’ with national symbols
Staff and students from Pui Kiu Middle School in North Point hold flag-raising ceremony on campus on Monday. Photo: Nora Tam
Staff and students from Pui Kiu Middle School in North Point hold flag-raising ceremony on campus on Monday. Photo: Nora Tam

A Hong Kong protester’s decision to tear down a Chinese flag and throw it in Victoria Harbour on Saturday set off an outpouring of criticism, from Chinese internet users and celebrities to pro-Beijing businesses and schools in the city.

Then on Monday at about 7pm, a group of protesters went to the same flagstaff in Tsim Sha Tsui, tore down the flag again and threw it into the harbour, the second such incident in three days. In both cases, the protesters escaped.

In North Point, the Pui Kiu Middle School organised a flag-raising ceremony at the campus on Monday even though the school was officially on summer holidays.

Principal Ng Wun-kit said teachers and students were called back on short notice to take part.

“We saw [on the news] that some rioters in helmets threw the Chinese national flag in the harbour and we strongly condemn such behaviour. It was disrespectful,” Ng said.

“We wanted to show that we are one of the 1.4 billion Chinese people who want to protect the national flag. We hope that the students, teachers, and [Hong Kong] citizens who love the country and the Chinese Communist Party can respect the Chinese flag.”

Other Hong Kong businesses and organisations flying the Chinese flag on Monday included international hotel chain Courtyard by Marriott Hong Kong, Chinese engineering firm Shanghai Zhenhua Heavy Industries and Chinese pharmaceutical giant Beijing Tong Ren Tang.

Beijing’s Hong Kong affairs office condemns protesters who threw Chinese flag in the sea

A spokeswoman from the hotel chain said it had flown the flag for many years and Monday was no exception.

“We display the flag because we are a Chinese-funded company. We do not have plans to take it down any time soon,” she said.

On Sunday, a group of Beijing supporters sang the national anthem and raised the Chinese flag in Tsim Sha Tsui to replace the one taken down.

On microblogging site Weibo, mainland Chinese and Hong Kong celebrities were among those forwarding pictures of the flag or salutes to it, adding the hashtag “the Chinese national flag has 1.4 billion flag bearers”, a topic started by China Central Television (CCTV) on Sunday. As of Monday night, the trending topic had been read more than 2 billion times, with more than 8 million posts and support from Hong Kong actors Jackie Chan, Jordan Chan Siu-chun and Hawick Lau Hoi-Wai.

In a commentary published online on Sunday, CCTV said the topic had attracted a strong response because patriotism ran deep among the Chinese people.

“We protect the flag, the national emblem, our country, and we protect our country like we protect our own homes,” it said.

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Analysts said the mood on Chinese social media had changed as protesters in Hong Kong vandalised symbols of the central government, crossing a line for most mainland Chinese.

Wang Jiangyu, an associate law professor at the National University of Singapore, said that although many mainlanders had admired Hong Kong and sympathised with its civil movements in the past, the situation had changed.

“The Chinese flag being insulted is on the top of a list of things mainlanders dislike, and for state media, which represent the central government’s position, focusing on such issues can frame the protesters as enemies of the Chinese nation or the people,” Wang said.

“It can increase the hatred of mainlanders towards the Hong Kong protesters and gain support for the central government to take action in the future.”

Ma Ngok, a political scientist at Chinese University of Hong Kong, said mainland media were using the incident to achieve their own propaganda purposes.

“Mainland media made it seem like [the flag protest was] the theme for the whole movement … but it does not represent the main demands of the anti-extradition movement. They are turning single actions into broad propaganda, and biasing mainland sentiment about Hong Kong,” Ma said.

Source: SCMP

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