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.
JOHANNESBURG (Reuters) – African ambassadors in China have written to the country’s foreign minister over what they call discrimination against Africans as the country seeks to prevent a resurgence of the coronavirus.
Several African countries have separately also demanded that China address their concerns that Africans, in particular in the southern city of Guangzhou, are being mistreated and harassed.
Having brought under control the original outbreak centred on the city of Wuhan, China is now concerned about imported cases and is stepping up scrutiny of foreigners coming into the country and tightening border controls. It has denied any discrimination.
In recent days Africans in Guangzhou have reported being ejected from their apartments by their landlords, being tested for coronavirus several times without being given results and being shunned and discriminated against in public. Such complaints have been made in local media, and on social media.
The ambassadors’ note said such “stigmatisation and discrimination” created the false impression that the virus was being spread by Africans.
“The Group of African Ambassadors in Beijing immediately demands the cessation of forceful testing, quarantine and other inhuman treatments meted out to Africans,” it said.
The note was sent to China’s top diplomat, Wang Yi, copying the chair of the African Union, South African President Cyril Ramaphosa and all African foreign ministers.
The Chinese foreign ministry’s International Press Centre did not immediately respond to a request for comment on the note, sent outside of business hours.
The Chinese embassy in South Africa also did not respond.
Foreign affairs official Liu Baochun told a news conference on Sunday that Guangzhou is enforcing anti-virus measures on anyone who enters the city from across the national border, regardless of nationality, race or gender.
The Chinese embassy in Zimbabwe on Saturday dismissed the accusation that Africans were being deliberately targeted.
“It is harmful to sensationalize isolated incidents,” it said in a tweeted statement. “China treats all individuals in the country, Chinese and foreign alike, as equals.”
DISAPPOINTMENT
The ambassadors’ note highlighted a number of reported incidents, including that Africans were being ejected from hotels in the middle of the night, the seizure of passports, and threats of visa revocation, arrest or deportation.
On Saturday, Ghana’s foreign minister of affairs Shirley Ayorkor Botchwey said she had summoned the Chinese ambassador to express her disappointment and demand action.
Kenya’s foreign ministry has also “officially expressed concern”, adding the government is working with Chinese authorities to address the matter.
On Friday, Nigerian legislator Akinola Alabi tweeted a video of a meeting between the leader of Nigeria’s lower house of parliament, Femi Gbajabiamila, and Chinese Ambassador Zhou Pingjian. In it, Gbajabiamila demanded an explanation from the diplomat after showing Zhou a video of a Nigerian complaining about mistreatment in China.
The ambassador said in response to the questions from the house leader that he took the complaints “very seriously” and promised to convey them to the authorities back home.
BEIJING (Reuters) – China reported on Saturday a rise in new coronavirus cases, as authorities try to head off a second wave of infections, particularly from imported and asymptomatic cases, as curbs on cities and travel are lifted.
The National Health Commission said 46 new cases were reported on Friday, including 42 involving travellers from abroad, up from 42 cases a day earlier.
In its statement the commission added that 34 new asymptomatic cases were reported, down from 47 the previous day.
Mainland China’s tally of infections now stands at 81,953. The death toll rose by three to 3,339.
Tough curbs imposed since January helped rein in infections sharply from the height of the pandemic in February. But policymakers fear a second wave triggered by arrivals from overseas or asymptomatic patients.
Northeastern Heilongjiang recently reported a spike in new cases because of Chinese nationals entering the province from Russia, which has seen a surge of cases.
Provincial health officials said it had 22 new imported cases on Friday, all Chinese nationals coming from Russia, and one new local case, in its capital of Harbin.
Inner Mongolia had a daily tally of 27 new imported cases by Saturday morning, all from Russia, the region’s health authority said.
The central province of Hubei, where the virus emerged late last year, reported no new cases for a seventh successive day.
A rise in virus infections has prompted authorities in Guangzhou to step up scrutiny of foreigners, ordering bars and restaurants not to serve clients who appear to be of African origin, the U.S. consulate in the southern city said.
Anyone with “African contacts” faces mandatory virus tests followed by quarantine, regardless of recent travel history or previous isolation, it said in a statement.
It advised African-Americans or those who feel they might be suspected of contact with nationals of African origin to avoid the city.
Since the epidemic broke out in the provincial capital of Wuhan, it has spread around the world, infecting 1.6 million people and killing more than 100,000.
BEIJING (Reuters) – China will promote the sales of export products in domestic markets, as foreign trade faces unprecedented challenges due to the coronavirus pandemic, an assistant commerce minister said on Friday.
As the coronavirus spreads to almost all of China’s trading partners, the world’s second-largest economy is set to reach a grim milestone for full year growth, with the pace of expansion likely to be the slowest since the Cultural Revolution ended in 1976. And, the export sector is facing millions of job losses and factory shutdowns.
“Due to the rapid spread of the epidemic in the world, foreign demand has slumped and the biggest difficulty facing foreign trade companies is the plunge in orders,” said Ren Hongbin, the assistant minister at the Ministry of Commerce.
He said firms across the board have had their orders cancelled or delayed, and new orders are “very hard to sign”.
“The uncertainty about the pandemic has become the biggest uncertainty for foreign trade development.”
Forecasters expect China’s 2020 growth could be nearer the 2.0% mark – the slowest in over 40 years – due to the sweeping impact of the pandemic both at home and overseas. The economy grew 6.1% last year.
China’s overseas shipments fell 17.2% in January-February from the same period a year earlier, marking the steepest fall since February 2019. Imports sank 4% from a year earlier.
Among the government measures to support the sector, China is accelerating efforts to build online trade fairs and guiding exporters to work with e-commerce retailers for sales in domestic markets and coordinating with its trading partners to stabilise supply chains, said Ren.
The Canton Fair, China’s oldest and biggest trade fair due to take place online, will feature live-streaming services for participants, Li Xingqian, another commerce ministry official, told the same briefing. The fair was originally scheduled to begin on April 15, but was postponed due to the coronavirus outbreak.
China is willing to boost trade relations with other countries, including the United States, under the new circumstances, said Ren, adding that Beijing hopes to work together with Washington to promote bilateral trade.
Both countries have been engaged in a near two-year long trade war with tit-for-tat tariffs on each other’s goods, before negotiators called a truce with an interim trade deal in January.
BEIJING (Reuters) – China’s factory gate prices fell the most in five months in March, with deflation deepening and set to worsen in coming months as the economic damage wrought by the coronavirus outbreak at home and worldwide shuts down many countries.
The world’s second-largest economy is trying to restart its engines after weeks of near paralysis to contain the pandemic that had severely restricted business activity, flow of goods and the daily life of people.
Friday’s data from the National Bureau of Statistics suggested a durable recovery was some way off, with China’s producer price index (PPI) falling 1.5% from a year earlier, the biggest decline since October last year. It compared with a median forecast of a 1.1% fall tipped by a Reuters poll of analysts and a 0.4% drop in February.
Headline consumer inflation also eased somewhat last month, partly led by government control measures, while core prices remained benign, leaving more room for monetary easing, some analysts said.
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The overall decline in the factory gate gauge was exacerbated by a slump in global oil and commodities prices, which filtered through to crude oil, steel and non-ferrous metal industries, the statistics bureau said in a statement accompanying the data.
“The issue of having more supply than demand, and persistently low oil prices, will intensify deflationary pressures,” said Yang Yewei, a Beijing-based analyst with Southwest Securities.
“Work resumptions on the production side are faster than the repair in demand. Downstream demand is recovering slowly and still remains weak,” he said.
The oil and gas extraction sector had the biggest year-on-year price fall of 21.7%, among the 40 major industrial sectors surveyed, deteriorating sharply from a 0.4% drop in the previous month.
The stringent travel and transport curbs have now been lifted across much of the country including Wuhan, the epicentre of the outbreak where the virus first emerged in late 2019. So far the virus has killed more than 3,300 and infected over 81,000 people in the country.
Analysts expect a deep first-quarter economic contraction in China and have grown increasingly pessimistic about the country’s prospects for 2020 due to the pandemic’s sweeping global impact.
Many economists and policymakers are forecasting a steep global recession this year as numerous countries are forced into lockdowns to contain the spread of the coronavirus, severely curtailing business activity in a major blow to jobs and incomes.
Worldwide, the virus has killed around 95,000 people and infected more than 1.5 million. Policymakers globally have responded to the crisis by launching an unprecedented package of stimulus measures, injecting trillions of dollars to backstop their economies that have been brought to a virtual standstill.
Beijing has also rolled out a series of fiscal and monetary support steps, and sources have told Reuters that policymakers are readying more stimulus in the coming months to stabilise growth and prevent mass unemployment.
China’s consumer prices rose 4.3% from a year earlier in March, compared with a 4.8% gain tipped by a Reuters poll and a 5.2% increase in February, as logistics and transport conditions improved and government price control measures kicked in.
But food prices still rose over 18% from a year earlier, led by a 116.4% jump in pork prices, the data showed. The virus outbreak has pushed up prices of some food items, such as pork and vegetables.
Core inflation – which excludes food and energy prices – remained benign last month at 1.2%，but it still edged up from 1% in February.
MUNICH (Reuters) – One January lunchtime in a car parts company, a worker turned to a colleague and asked to borrow the salt.
As well as the saltshaker, in that instant, they shared the new coronavirus, scientists have since concluded.
That their exchange was documented at all is the result of intense scrutiny, part of a rare success story in the global fight against the virus.
The co-workers were early links in what was to be the first documented chain of multiple human-to-human transmissions outside Asia of COVID-19, the disease caused by the coronavirus.
They are based in Stockdorf, a German town of 4,000 near Munich in Bavaria, and they work at car parts supplier Webasto Group. The company was thrust under a global microscope after it disclosed that one of its employees, a Chinese woman, caught the virus and brought it to Webasto headquarters. There, it was passed to colleagues – including, scientists would learn, a person lunching in the canteen with whom the Chinese patient had no contact.
The Jan. 22 canteen scene was one of dozens of mundane incidents that scientists have logged in a medical manhunt to trace, test and isolate infected workers so that the regional government of Bavaria could stop the virus from spreading.
That hunt has helped Germany win crucial time to build its COVID-19 defences.
The time Germany bought may have saved lives, scientists say. Its first outbreak of locally transmitted COVID-19 began earlier than Italy’s, but Germany has had many fewer deaths. Italy’s first detected local transmission was on Feb. 21. By then Germany had kicked off a health ministry information campaign and a government strategy to tackle the virus which would hinge on widespread testing. In Germany so far, more than 2,100 people have died of COVID-19. In Italy, with a smaller population, the total exceeds 17,600.
“We learned that we must meticulously trace chains of infection in order to interrupt them,” Clemens Wendtner, the doctor who treated the Munich patients, told Reuters.
Wendtner teamed up with some of Germany’s top scientists to tackle what became known as the ‘Munich cluster,’ and they advised the Bavarian government on how to respond. Bavaria led the way with the lockdowns, which went nationwide on March 22.
Scientists including England’s Chief Medical Officer Chris Whitty have credited Germany’s early, widespread testing with slowing the spread of the virus. “‘We all know Germany got ahead in terms of its ability to do testing for the virus and there’s a lot to learn from that,’” he said on TV earlier this week.
Christian Drosten, the top virologist at Berlin’s Charite hospital, said Germany was helped by having a clear early cluster. “Because we had this Munich cohort right at the start … it became clear that with a big push we could inhibit this spreading further,” he said in a daily podcast for NDR radio on the coronavirus.
Drosten, who declined to be interviewed for this story, was one of more than 40 scientists involved in scrutiny of the cluster. Their work was documented in preliminary form in a working paper at the end of last month, intended for The Lancet. The paper, not yet peer-reviewed, was shared on the NDR site.
ELECTRONIC DIARIES
It was on Monday, Jan. 27, that Holger Engelmann, Webasto’s CEO, told the authorities that one of his employees had tested positive for the new coronavirus. The woman, who was based in Shanghai, had facilitated several days of workshops and attended meetings at Webasto’s HQ.
The woman’s parents, from Wuhan, had visited her before she travelled on Jan. 19 to Stockdorf, the paper said. While in Germany, she felt unusual chest and back aches and was tired for her whole stay. But she put the symptoms down to jet lag.
She became feverish on the return flight to China, tested positive after landing and was hospitalised. Her parents also later tested positive. She told her managers of the result and they emailed the CEO.
In Germany, Engelmann said he immediately set up a crisis team that alerted the medical authorities and started trying to trace staff members who had been in contact with their Chinese colleague.
The CEO himself was among them. “Just four or five days before I received the news, I had shaken hands with her,” he said.
Now known as Germany’s “Case #0,” the Shanghai patient is a “long-standing, proven employee from project management” who Engelmann knows personally, he told Reuters. The company has not revealed her identity or that of others involved, saying anonymity has encouraged staff to co-operate in Germany’s effort to contain the virus.
The task of finding who had contact with her was made easier by Webasto workers’ electronic calendars – for the most part, all the doctors needed was to look at staff appointments.
“It was a stroke of luck,” said Wendtner, the doctor who treated the Munich patients. “We got all the information we needed from the staff to reconstruct the chains of infection.”
For example, case #1 – the first person in Germany to be infected by the Chinese woman – sat next to her in a meeting in a small room on Jan. 20, the scientists wrote.
Where calendar data was incomplete, the scientists said, they were often able to use whole genome sequencing, which analyses differences in the genetic code of the virus from different patients, to map its spread.
By following all these links, they discovered that case #4 had been in contact several times with the Shanghai patient. Then case #4 sat back-to-back with a colleague in the canteen.
When that colleague turned to borrow the salt, the scientists deduced, the virus passed between them. The colleague became case #5.
Webasto said on Jan. 28 it was temporarily closing its Stockdorf site. Between Jan. 27 and Feb. 11, a total of 16 COVID-19 cases were identified in the Munich cluster. All but one were to develop symptoms.
All those who tested positive were sent to hospital so they could be observed and doctors could learn from the disease.
Bavaria closed down public life in mid-March. Germany has since closed schools, shops, restaurants, playgrounds and sports facilities, and many companies have shut to aid the cause.
HAMMER AND DANCE
This is not to say Germany has defeated COVID-19.
Its coronavirus death rate of 1.9%, based on data collated by Reuters, is the lowest among the countries most affected and compares with 12.6% in Italy. But experts say more deaths in Germany are inevitable.
“The death rate will rise,” said Lothar Wieler, president of Germany’s Robert Koch Institute for infectious diseases.
The difference between Germany and Italy is partly statistical: Germany’s rate seems so much lower because it has tested widely. Germany has carried out more than 1.3 million tests, according to the Robert Koch Institute. It is now carrying out up to 500,000 tests a week, Drosten said. Italy has conducted more than 807,000 tests since Feb. 21, according to its Civil Protection Agency. With a few local exceptions, Italy only tests people taken to hospital with clear and severe symptoms.
Germany’s government is using the weeks gained by the Munich experience to double the number of intensive care beds from about 28,000. The country already has Europe’s highest number of critical care beds per head of the population, according to a 2012 study.
Even that may not be enough, however. An Interior Ministry paper sent to other government departments on March 22 included a worst-case scenario with more than 1 million deaths.
Another scenario saw 12,000 deaths – with more testing after partial relaxation of restrictions. That scenario was dubbed “hammer and dance,” a term coined by blogger Tomas Pueyo. It refers to the ‘hammer’ of quick aggressive measures for some weeks, including heavy social distancing, followed by the ‘dance’ of calibrating such measures depending on the transmission rate.
The German government paper argued that in the ‘hammer and dance’ scenario, the use of big data and location tracking is inevitable. Such monitoring is already proving controversial in Germany, where memories of the East German Stasi secret police and its informants are still fresh in the minds of many.
A subsequent draft action plan compiled by the government proposes the rapid tracing of infection chains, mandatory mask-wearing in public and limits on gatherings to help enable a phased return to normal life after Germany’s lockdown. The government is backing the development of a smartphone app to help trace infections.
Germany has said it will re-evaluate the lockdown after the Easter holiday; for the car parts maker at the heart of its first outbreak, the immediate crisis is over. Webasto’s office has reopened.
All 16 people who caught COVID-19 there have recovered.
The patients were all returning Chinese citizens who had flown from Moscow to Vladivostok, a Russian city around 100 miles south.
All the new patients were taken to hospital, with two in a serious condition.
In addition, another 86 people in Suifenhe – who came via the same route – were classed as “asymptomatic” but positive for the virus, which China counts separately.
What has Suifenhe done?
The border was closed to people on Tuesday, the local government said, although cargo can continue. Russia closed its border with China in February.
People in the city have been told to stay at home, although the lockdown isn’t as severe as Hubei province experienced. One person per house can shop for essentials every three days.
At the same time, the new hospital – in an existing building – is due to open this weekend, intended for patients with mild symptoms.
“Of course I’m very scared,” one woman who runs a bakery shop told the BBC.
“We don’t leave the house now. Many people already left the city. But we can’t do that, because we have a shop need to take care of.”
Image copyright SOVFOTOImage caption This picture from 2005 showed the extent of Russian timber exports passing through Suifenhe railway station
Meanwhile, a member of staff at a restaurant in the city said it was normally their high season, with around 1,000 customers a day.
Instead, they were told to close earlier this week, with “no idea” when they can open again.
But the staff member was not critical of the government. He said the lockdown made him feel “secure” – and that he was “very confident” the government would look after the situation.
What is the situation in the rest of China?
China’s recorded rate of Covid-19 infections has slowed dramatically in recent weeks.
On Wednesday, people were allowed to leave Wuhan – where the outbreak emerged – for the first time in 11 weeks if they were deemed virus-free.
There were 221 inbound and outbound flights, with more than 7,000 people leaving and 4,500 arriving. More than half a million used public transport, state media reported.
But although people from Wuhan can leave, they still face restrictions in other cities. In Beijing, for example, they will be tested upon arrival, according to local media.
Even if they pass, they will then be quarantined for 14 days – and tested again – before being released.
MILAN/DETROIT (Reuters) – Global automakers reeling from the COVID-19 pandemic are accelerating efforts to restart factories from Wuhan to Maranello to Michigan, using safety protocols developed for China and U.S. ventilator production operations launched in recent weeks.
Certain safety measures differ from manufacturer to manufacturer. Italian sports car maker Ferrari NV (RACE.MI) said on Wednesday it would offer voluntary blood tests to employees who wanted to know if they had been exposed to the virus.
General Motors Co’s (GM.N) head of workplace safety, Jim Glynn, told Reuters on Wednesday GM is not persuaded blood tests are useful. But Glynn said GM has studied and adapted measures taken by Amazon.com Inc (AMZN.O) to protect warehouse workers, such as temperature screening to catch employees with fevers before they enter the workplace.
Auto manufacturers and suppliers are converging on a consensus that temperature screening, daily health questionnaires, assembly lines redesigned to keep workers 3 to 6 feet (0.9 m to 1.8 m) apart, and lots and lots of masks and gloves can enable large-scale factories to operate safely.
“We know the protocols to keep people safe,” Gerald Johnson, GM’s executive vice president for global manufacturing, told Reuters in an interview. GM has relaunched vehicle plants in China and kept factories running in South Korea, he said.
GM has not said when it will reopen assembly plants in the United States. Other automakers are putting dates out in public, even though health officials and federal and state policymakers are wary of lifting lockdowns too soon.
“You see vehicle manufacturers … putting a stake in the ground,” said Brian Collie, head of Boston Consulting Group’s automotive practice. By setting a public date to restart production, they signal suppliers to get ready to ramp up, he said.
The COVID-19 pandemic has thrown the global auto industry into the worst tailspin since the 2008-2009 financial crisis. Consumer demand for vehicles has collapsed as governments have enforced lockdowns in China, and then in Europe and the United States. For the Detroit automakers and their suppliers, the shutdown of profitable truck and sport utility vehicle plants in North America has choked off cash flow.
In Europe, major automakers have said they hope to begin building vehicles again in mid-to-late April. In the United States, several big automakers, including Fiat Chrysler Automobiles NV (FCHA.MI) (FCAU.N), Honda Motor Co Ltd (7267.T) and Toyota Motor Corp (7203.T), are aiming to restart production during the first week of May.
Fiat Chrysler (FCA) and unions are discussing plans for beefed-up health measures at Italian plants to pave the way for production to restart as soon as the government eases a national lockdown due to expire on April 13, unions said on Wednesday.
Among the proposals from Fiat Chrysler’s Italian unions: move meals to the end of shifts, allowing employees to chose to avoid canteens, eat their food elsewhere and leave half an hour earlier without losing pay.
FCA did not comment on specific measures.
In the United States, some non-union automakers have also said they hope to restart vehicle plants as soon as next week.
Tire maker Bridgestone said on Wednesday it plans to restart U.S. production on April 13.
But the Trump administration has said people should continue to practice social distancing until April 30.
VENTILATOR ASSEMBLY
For the Detroit automakers, the United Auto Workers union will play a key role in deciding when and how plants will restart.
UAW President Rory Gamble said in a statement on Wednesday the union is in “deep discussions with all three companies to plan ahead over the implementation of CDC [Centers for Disease Control and Prevention] safety standards and using all available technologies to protect all UAW members, their families and the public.”
Among the union’s concerns is that members who report being ill can take time away from work without penalty, Gamble added.
The UAW has supported GM and Ford Motor Co’s (F.N) efforts to launch production of ventilators in U.S. plants – operations that have allowed the companies and the union to road-test safety measures at small scale.
At GM’s ventilator assembly plant in Kokomo, Indiana, workers and managers have been fine-tuning details such as when employees are handed masks, and when they step in front of a temperature screening device.
At first, ventilator assemblers in training at Kokomo walked down a hall before getting a mask, said Debby Hollis, one of the UAW-represented workers. Last week, she said, “They met us at the door and had us get in the masks there.”
BEIJING, April 7 (Xinhua) — A Chinese Foreign Ministry spokesperson said Tuesday that China opposes all forms of discrimination and prejudice.
Spokesperson Zhao Lijian made the remarks in a press briefing when responding to media reports that since China tightened immigration control measures to contain imported cases of COVID-19, some foreigners have complained about discrimination and rising xenophobia in China.
“China always attaches great importance to the safety and health of foreign nationals in China and protects their legitimate rights and interests in accordance with the law,” Zhao stressed.
Since the COVID-19 outbreak, relevant departments and local governments in China have made every effort to meet the living, epidemic control and medical needs of the foreign citizens, Zhao said, adding that foreign nationals infected with COVID-19 in China are provided timely treatment.
“China opposes all forms of discrimination and prejudice,” Zhao noted, adding that in light of the development of the epidemic, China has promptly and dynamically adjusted the inspection, quarantine, prevention and control measures for foreign nationals entering into China.
“These are temporary measures that China has to take in response to the current situation by referring to the practices of many countries. China has to do so because we must be responsible for our own people and foreign citizens as well,” Zhao said.
“We always treat foreign nationals and Chinese citizens alike, implement measures without discrimination, give full consideration to the legitimate concerns of the persons concerned and respect their religions and customs. We do not increase or reduce certain regulations on someone just because they are foreign citizens,” Zhao said.
Zhao stressed that all foreigners in China should strictly abide by the Law of the People’s Republic of China on the Prevention and Treatment of Infectious Diseases, as well as other laws and local regulations on epidemic prevention and control.
“We hope foreign citizens in China will continue to fully understand and actively cooperate with China’s epidemic control measures to prevent risks and protect the health and safety of their own and others. That is the way to contribute to the final victory over the epidemic,” he added.
BEIJING, April 7 (Xinhua) — China will set up 46 new integrated pilot zones for cross-border e-commerce, as well as support processing trade with new steps and hold the Canton Fair online to keep foreign trade and investment stable amid the epidemic, according to the State Council’s executive meeting chaired by Premier Li Keqiang Tuesday.
Figures from the General Administration of Customs showed that the retail sales of China’s cross-border e-commerce businesses reached 186.21 billion yuan (about 26.25 billion U.S. dollars) in 2019.
The Tuesday meeting noted the massive impact of the fast-evolving outbreak worldwide on the global economy, trade and investment. The fast growth of cross-border e-commerce in recent years has become a new highlight in the country’s foreign trade. It is important to leverage the unique strength of cross-border e-commerce when the traditional sectors in foreign trade are hit hard in the COVID-19 outbreak, in order to drive foreign trade with new business forms in this trying time.
“Tackling the economic impact of the outbreak abroad is a pressing task. With the tight containment measures introduced across countries, foreign trade and investment are persistently going downward,” Li said.
The meeting decided to set up another 46 integrated pilot zones for cross-border e-commerce on top of the 59 existing ones. In addition to applying the practices proven effective in boosting the flow of commerce, firms in these zones will enjoy such support policies as exemption of value-added and consumption taxes on retail exports, and assessed levy of the corporate income tax.
Integrated pilot zones with proper conditions will be listed into the pilot program on retail imports of cross-border e-commerce. Companies will be supported to jointly build and share overseas warehouses.
“We must accelerate the development of cross-border e-commerce and other new models to boost foreign trade and investment. Competent departments must exercise sound quality supervision and ensure unimpeded logistic services,” Li said.
Measures to boost processing trade are also discussed at the meeting. With processing trade accounting for one fourth of the country’s foreign trade, the meeting stressed the need to coordinate domestic and foreign trade and help companies engaged in processing trade tackle their difficulties, as well as to stabilize foreign investment and employment.
“In a globalized world, countries all have a stake in each other’s future. The Chinese economy has been deeply integrated into the world economy. We must promptly analyze the outbreak’s impact on the industrial chains and work out our policy response accordingly. This is vitally important for stabilizing employment,” Li said.
It was decided at the meeting that interests of the deferred tax for the bonded materials or finished products in processing trade sold domestically will be temporarily waived till the end of this year. The pilot program where processing trade companies may pay duty for their domestic sales as either imported materials or finished goods will be extended to all the integrated bonded zones.
The category of industries where foreign investment is encouraged will be expanded, and the list of prohibited goods in processing trade will be shortened.
“We must take a holistic approach in developing domestic and foreign trade, and swiftly introduce support policies prioritizing the domestic sales by processing trade companies,” Li added.
It was also decided that given the serious outbreak situation globally, the 127th China Import and Export Fair, also known as Canton Fair, will be hosted online in mid- to late June.
Companies from home and abroad will be widely invited to exhibit their products online. Powered by advanced information technology, the Fair will provide around-the-clock services for online product promotion, matchmaking and business negotiations. It will be an Internet-enabled foreign trade platform of quality and specialty products where Chinese and foreign businesses may place orders and cut deals without the hassle of travel.
Most of the relief fund earmarked to subsidise employees’ wages in affected industries
Lam and ministers slash their salaries following controversy over chief executive’s pay
Many businesses have been forced to close because of the coronavirus outbreak. Photo: Winson Wong
More than 1 million Hong Kong workers will have part of their wages paid for by the government under a HK$137.5 billion package of measures to help businesses and residents struggling during the Covid-19 crisis, while the city’s leader and her ministers have vowed to take a pay cut, the Post has learned.
Revealing the massive relief fund on Wednesday, Chief Executive Carrie Lam Cheng Yuet-ngor said HK$80 billion would go towards the wage scheme, targeting coronavirus-hit industries over six months with individual payments capped at 50 per cent of salaries, up to HK$9,000 a month. The employers receiving the lifeline must pledge not to lay off workers, she added.
Hong Kong records 25 new cases, including two-month-old baby; tally at 960
8 Apr 2020
Lam said the package, together with other recent pledges of financial relief, would cost a total of HK$287.5 billion, causing the budget deficit to surge from HK$139.1 billion this financial year to HK$276.6 billion, which is equivalent to 9.5 per cent of gross domestic product.
The relief deal is equivalent in size to 4.6 per cent of the city’s GDP.
Meanwhile, Lam’s monthly salary will fall to HK$390,000 after rising to HK$434,000 last July.
Lam and her 16 ministers had voluntarily agreed to a 10 per cent pay reduction for a year, the chief executive told the press conference.
The HK$137.5 billion deal – which was given the green light by her Executive Council earlier in the day – aims to safeguard employment and ease the woes of businesses, with the number of confirmed Covid-19 cases in the city reaching 960 on Wednesday.
A source said: “The scheme is aimed at coping with the economic hardship brought by the pandemic in the next six months. More than 1 million employees from various sectors, on top of those directly affected by the government’s social-distancing measures, will benefit.”
Staff affected by the latest social-distancing rules – including businesses forced to close – will benefit from the wage scheme, along with employees in sectors such as tourism and construction, two other sources said.
Some businesses set to benefit would be those related to education, such as tutorial centres, school bus operators and PE coaches contracted from outside, according to one.
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“The government is drawing reference from the British government’s recent practice of paying 80 per cent of salaries of employees in affected industries, although the percentage and cap are lower in Hong Kong,” one source said.
In an unprecedented step announced last month, the UK government said the state would pay grants covering up to 80 per cent of salaries if companies kept workers on the payroll rather than laying them off.
In Singapore, the government has offered to pay 75 per cent of workers’ April wages, capped at S$4,600 (HK$25,000) per person.
The Japanese government on Tuesday approved its largest-ever economic relief package, which includes grants of up to 2 million yen (US$18,350), for small and medium-sized businesses whose revenues had more than halved.
Hongkonger recalls weeks of lockdown in Wuhan, China, the first epicentre of the Covid-19 pandemic
With the Hong Kong government sitting on reserves of more than HK$1.1 trillion, the Professional Commons think tank said the authorities should spend HK$200 billion on businesses and workers, including handing HK$7,500 a month over six months to sacked staff and covering 80 per cent of salaries up to a monthly maximum of HK$25,000 for workers at struggling firms and the self-employed.
CHINDIA ALERT: You'll be living in their world, very soon 