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.
Photos showing Indian soldiers purportedly brought down by PLA soldiers at a fist and stick fight circulated among Chinese military websites
WeChat and YouTube become new fighting arenas for soldiers but their governments are playing down Himalayan clashes
A photo showing PLA troops after purportedly bringing down several Indian soldiers at a close-quarters fight at Pangong Lake border area with India, was circulated among Chinese military websites on Sunday. Photo: Handout
People’s Liberation Army soldiers and their Indian counterparts have moved
over border disputes in the Himalayas to social media platforms as both their governments try to play down the fights.
A post with photos showing several Indian soldiers purportedly brought down by PLA soldiers in a fist and stick fight at the Pangong Lake border area with India was circulated among Chinese military websites on Sunday.
On the Chinese social media site WeChat, a Chinese soldier posted photos showing a number of Indian soldiers lying on the ground with a group of PLA soldiers standing nearby with sticks in their hands. The photos were accompanied by a Chinese caption saying the Chinese side “had just one injury but dozens of Indian soldiers were wounded”.
A screen grab of YouTube video in which Indian troops claimed to have captured a Chinese officer, who appeared hurt after a brawl at Pangong Lake in the Himalayas. Photo: Handout
The report was published one day after the Indian side posted a video on YouTube showing that Indian troops had captured a Chinese officer, who appeared badly roughed up during the brawl at Pangong Lake, about 4,350 metres (14,300 feet) above sea level in the Himalayas.
The YouTube video posted by someone on the Indian side did not state the time or date of the incident. Photo: Handout
The crudely made video, which did not include the date of the incident, also showed a damaged PLA military vehicle amid cheering Indian troops.
Two independent sources close to the PLA said “the wounded Chinese officer was an interpreter who was taken in by the Indian troops but was later released with minor injuries after the Chinese side called for reinforcements”.
The sources said soldiers from both sides had turned to social media to give a positive spin to their “acts of bravery” while their commanders wanted to play down the disputes. One source pointed out that the pictures of injured Indian soldiers were posted by a Chinese soldier on his personal social media account and not on official channels.
“Beijing didn’t want its people to think that Chinese soldiers lost in the fight but at the same time it is mindful of not escalating the matter,” said the source, who requested anonymity because of sensitivity of the situation.
India denies that Trump spoke to Modi about border tensions with China
29 May 2020
Beijing-based military expert Zhou Chenming said the Chinese border troops had been told to be “restrained”.
“In border disputes, China always wants to keep the status quo, especially now when both sides should do all they can to avoid fighting,” Zhou said. “China is busy dealing with the Covid-19 pandemic and other issues like Taiwan and Hong Kong, and India also faces a serious Covid-19 situation.”
Rajeev Ranjan Chaturvedy, an international relations expert based in New Delhi, agreed with Zhou’s analysis, saying both China and India understood the seriousness and sensitivity of their border disputes.
“Civilian and military officials of both countries are already in discussion under existing mechanisms,” he said. “The stakes are too high for both countries and the probability of a war [between India and China] is low, in my view.
“Though, the situation is very serious and India is closely monitoring Chinese activities.”
Military and diplomacy analysts believe border skirmishes between China and India will not escalate to war because of a range of factors, including the coronavirus pandemic. Photo: AP
Overseas media reported that both Chinese and Indian militaries had increased deployment to the border, with the PLA moving 5,000 personnel to the area.
Speaking last Wednesday, Chinese foreign ministry spokesman Zhao Lijian did not deny the troop deployment reports but said the overall situation in the China-India border area remained “stable and under control, and the two countries were capable of resolving border issues through dialogue and negotiations”.
Border conflicts between China and India have escalated since 2017, with Indian troops and the PLA staging the most serious confrontation in Doklam near a tri-junction border area – known as Donglang or Donglang Caochang, in Chinese – a territory which is claimed by both China and Bhutan, an ally of India.
WASHINGTON (Reuters) – U.S. President Donald Trump has little choice but to stick with his Phase 1 China trade deal despite his anger at Beijing over the coronavirus pandemic, new Hong Kong security rules, and dwindling hopes China can meet U.S. goods purchase targets, people familiar with his administration’s deliberations say.
The U.S.-China trade negotiations took more than two years, heaped tariffs on $370 billion of Chinese products, whipsawed financial markets and dimmed global growth prospects well before the coronavirus outbreak crushed them.
In recent weeks, suggestions that Trump may cancel the deal have emanated from the White House almost daily, and businesses, investors, and China trade watchers are hanging on to every word and tweet.
But on Friday, when Trump said the United States would start dismantling trade and travel privileges for Hong Kong, he did not mention the deal. Stock markets heaved a sigh of relief, with the S&P 500 .SPX reversing losses.
Talking tough on China and criticizing the Obama administration’s more measured approach is a key part of Trump’s re-election strategy. Sticking with the pact may mean accepting that China is likely to fall short of purchase commitments for U.S. agricultural goods, manufactured products, energy and services – goals that many said were unrealistic here even before the pandemic.
Canceling the deal, though, would reignite the nearly two-year U.S.-China trade war at a time U.S. unemployment is at its worst since the 1930s Great Depression.
The next U.S. step would likely be reviving previously planned but canceled tariffs on some $165 billion worth of Chinese consumer goods, including Apple (AAPL.O) cellphones and computers, toys and clothing – all ultimately paid by U.S. companies and passed on to consumers. Beijing would retaliate with tariffs on U.S. goods, fueling more market turmoil and delaying recovery.
“He’s stuck with a lemon. He gets an empty agreement if he sticks with it, and he gets more actions that create an economic drag and more volatility if he abandons it,” said one person briefed on the administration’s trade deliberations.
U.S. goods exports here to China in the first quarter were down $4 billion from the trade war-damaged levels a year earlier, according to U.S. Census Bureau data.
The Peterson Institute of International Economics estimates here that during the first quarter, China made only about 40% of the purchases it needed to stay on target for a first-year increase of $77 billion over 2017 levels, implying an extremely steep climb in the second half.
Leaving the deal now would not buy a lasting political bounce for Trump in manufacturing-heavy swing states with five months to go before the presidential election, analysts say.
COMPLEX RELATIONSHIP
Trump blames China for failing to contain the coronavirus and has repeatedly said the deal, including its pledges to boost U.S. exports to China by $200 billion over two years, no longer means as much to him with U.S. coronavirus deaths now over 100,000 and job losses piling up.
Trump said on Friday that China was “absolutely smothering Hong Kong’s freedom,” but refrained from harsh sanctions that could put the trade deal in jeopardy, taking milder steps to revoke the territory’s separate travel and customs benefits from China.
Claire Reade, a former U.S. trade negotiator, said Trump’s “peripheral steps” would not deter Beijing from proceeding with the security law, as it regards Hong Kong as a core national security issue.
“Probably the most significant thing from the trade perspective is that the Phase 1 trade deal is – for now anyway – unaffected,” said Reade, senior counsel with Arnold and Porter law firm in Washington.
White House Economic Adviser Larry Kudlow criticized Beijing last week, but on trade told CNBC: “It’s a complex relationship. The China Phase 1 trade deal does continue to go on for the moment and we may be making progress there.”
U.S. Trade Representative Robert Lighthizer has recently cited here “continuing progress” in the deal, after China welcomed U.S. blueberries, barley, beef and dairy products. He has touted the deal’s dispute settlement mechanism, which provides for regular consultations on compliance with Beijing’s commitments on intellectual property protections, financial services, agriculture standards and purchases.
U.S.-China flashpoints on Hong Kong, Taiwan and other issues did not derail negotiations that resulted in new concessions from China, said Jamieson Greer, who served as Lighthizer’s chief of staff until April.
“Some of these security and human rights challenges have certainly complicated the atmosphere, but the trade agreement can still provide a set of rules governing important aspects of the trade relationship,” said Greer, now an international trade partner at the King and Spalding law firm.
Another person familiar with USTR thinking said the agency “needs to make Phase 1 look good. They want to show that progress is being made. The president looks at the China relationship much more broadly.”
MUMBAI/NEW DELHI (Reuters) – India is likely to receive 102% rainfall of a long-term average this year, the state-run weather office said on Monday, raising expectations for higher farm output in Asia’s third-biggest economy, which is reeling from the new coronavirus pandemic.
In July India could receive 103% rainfall of its long-term average and 97% in August, M. Rajeevan, secretary at the Ministry of Earth Sciences, told a news conference.
The IMD defines average, or normal, rainfall as between 96%and 104% of a 50-year average of 88 centimetres for the entire four-month season beginning in June.
Embassy in France removes ‘false image’ on Twitter in latest online controversy amid accusations of spreading disinformation
After months of aggressive anti-US posts by Chinese diplomats Beijing is cracking down on ‘smear campaigns’ at home
Beijing’s ‘Wolf Warrior’ diplomacy has coincided with a rise of nationalist content on Chinese social media. Photo: Reuters
Beijing is battling allegations that it is running a disinformation campaign on social media, as robust posts by its diplomats in Western countries promoting nationalist sentiment have escalated into a spat between China and other countries, especially the United States.
In the latest in a series of online controversies, the Chinese embassy in France claimed its official Twitter account had been hacked after it featured a cartoon depicting the US as Death, knocking on a door marked Hong Kong after leaving a trail of blood outside doors marked Iraq, Libya, Syria, Ukraine and Venezuela. The inclusion in the image of a Star of David on the scythe also prompted accusations of anti-Semitism.
Top China diplomats call for ‘Wolf Warrior’ army in foreign relations
25 May 2020
“Someone posted a false image on our official Twitter account by posting a cartoon entitled ‘Who is Next?’. The embassy would like to condemn it and always abides by the principles of truthfulness, objectivity and rationality of information,” it said on Monday.
The rise of China’s aggressive “Wolf Warrior” diplomacy has been regarded by analysts as primarily aimed at building support for the government at home but the latest incident is seen as an attempt by Beijing to take back control of the nationalist narrative it has unleashed.
Florian Schneider, director of the Leiden Asia Centre in the Netherlands, said the removal of the embassy’s tweet reflected a constant concern in Beijing about the range of people – including ordinary citizens – who were involved in spreading nationalistic material online.
“The state insists that its nationalism is ‘rational’, meaning it is meant to inspire domestic unity through patriotism but without impacting national interests or endangering social stability,” he said.
“This makes nationalism a mixed blessing for the authorities … if nationalist stories demonise the US or Japan or some other potential enemy, then any Chinese leader dealing diplomatically with those perceived enemies ends up looking weak.
“Trying to guide nationalist sentiment in ways that further the leadership’s interests is a difficult balancing act and I suspect this is partly the reason why the authorities are currently trying to clamp down on unauthorised, nationalist conspiracy theories.”
Too soon: Chinese advisers tell ‘Wolf Warrior’ diplomats to tone it down
The report came after months of social media posts – including by Chinese diplomats – defending China against accusations it had mishandled the coronavirus pandemic and attacking the US and other perceived enemies.
In March, Chinese foreign ministry spokesman Zhao Lijian promoted a conspiracy theory on Twitter suggesting the virus had originated in the US and was brought to China by the US Army. His comments were later downplayed, with China’s ambassador to the US Cui Tiankai saying questions about the origin of the virus should be answered by scientists.
Schneider said this showed that the state-backed nationalistic propaganda online was at risk of backfiring diplomatically.
“The authorities have to constantly worry that they might lose control of the nationalist narrative they unleashed, especially considering how many people produce content on the internet, how fast ideas spread, and how strongly commercial rationales drive misinformation online,” he said.
Last month, a series of widely shared social media articles about people in different countries “yearning to be part of China” resulted in a diplomatic backlash against Beijing. Kazakhstan’s foreign ministry summoned the Chinese ambassador in April to lodge a formal protest against the article.
Following the incident, the Cyberspace Administration of China, the country’s internet regulator which manages the “firewall” and censors material online, announced a two-month long “internet cleansing” to clear privately owned accounts which engage in “smear campaigns”.
The article had at least 100,000 readers, with 753 people donating money to support the account. According to Xigua Data, a firm that monitors traffic on Chinese social media, the account garnered more than 1.7 million page views for 17 articles in April.
According to a statement from WeChat, the account was closed for fabricating facts, stoking xenophobia and misleading the public.
A journalism professor at the University of Hong Kong said this case differed from the Chinese embassy’s tweet, despite both featuring anti-US sentiment.
Masato Kajimoto, who leads research on news literacy and the misinformation ecosystem, said the closure of the WeChat account seemed to be more about Chinese authorities feeling the need to regulate producers of media content whose motivations were often financial rather than political.
“I would think the government doesn’t like some random misinformation going wild and popular, which affects the overall storylines they would like to push, disseminate and control,” he said.
One way for China to respond to the situation was to fact-check social media and to position itself as a protector facts and defender of the integrity of public information, he said.
“In the age of social media, both fake news and fact-checking are being weaponised by people who try to influence or manipulate the narrative in one way or another,” Kajimoto said.
“Not only China but also many other authoritarian states in Asia are now fact-checking social media. Governments in Singapore, Thailand, Indonesia and other countries all do that.
“Such initiatives benefit them because they can decide what is true and what is not.”
Image copyright PRESS INFORMATION BUREAUImage caption The area has become a hotspot in part because of a road India has built
The armies of the world’s two most populous nations are locked in a tense face-off high in the Himalayas, which has the potential to escalate as they seek to further their strategic goals.
Officials quoted by the Indian media say thousands of Chinese troops have forced their way into the Galwan valley in Ladakh, in the disputed Kashmir region.
Indian leaders and military strategists have clearly been left stunned.
The reports say that in early May, Chinese forces put up tents, dug trenches and moved heavy equipment several kilometres inside what had been regarded by India as its territory. The move came after India built a road several hundred kilometres long connecting to a high-altitude forward air base which it reactivated in 2008.
The message from China appears clear to observers in Delhi – this is not a routine incursion.
“The situation is serious. The Chinese have come into territory which they themselves accepted as part of India. It has completely changed the status quo,” says Ajai Shukla, an Indian military expert who served as a colonel in the army.
China takes a different view, saying it’s India which has changed facts on the ground.
Reports in the Indian media said soldiers from the two sides clashed on at least two occasions in Ladakh. Stand-offs are reported in at least three locations: the Galwan valley; Hot Springs; and Pangong lake to the south.
India and China share a border more than 3,440km (2,100 miles) long and have overlapping territorial claims. Their border patrols often bump into each other, resulting in occasional scuffles but both sides insist no bullet has been fired in four decades.
Their armies – two of the world’s largest – come face to face at many points. The poorly demarcated Line of Actual Control (LAC) separates the two sides. Rivers, lakes and snowcaps mean the line separating soldiers can shift and they often come close to confrontation.
The current military tension is not limited to Ladakh. Soldiers from the two sides are also eyeball-to-eyeball in Naku La, on the border between China and the north-eastern Indian state of Sikkim. Earlier this month they reportedly came to blows.
And there’s a row over a new map put out by Nepal, too, which accuses India of encroaching on its territory by building a road connecting with China.
Why are tensions rising now?
There are several reasons – but competing strategic goals lie at the root, and both sides blame each other.
“The traditionally peaceful Galwan River has now become a hotspot because it is where the LAC is closest to the new road India has built along the Shyok River to Daulet Beg Oldi (DBO) – the most remote and vulnerable area along the LAC in Ladakh,” Mr Shukla says.
India’s decision to ramp up infrastructure seems to have infuriated Beijing.
Image copyright AFPImage caption There have been protests in Nepal against Indi’s new road link
“According to the Chinese military, India is the one which has forced its way into the Galwan valley. So, India is changing the status quo along the LAC – that has angered the Chinese,” says Dr Long Xingchun, president of the Chengdu Institute of World Affairs (CIWA), a think tank.
Michael Kugelman, deputy director of the Asia programme at the Wilson Center, another think tank, says this face-off is not routine. He adds China’s “massive deployment of soldiers is a show of strength”.
The road could boost Delhi’s capability to move men and material rapidly in case of a conflict.
Differences have been growing in the past year over other areas of policy too.
The new federally-administered Ladakh included Aksai Chin, an area India claims but China controls.
Senior leaders of India’s Hindu-nationalist BJP government have also been talking about recapturing Pakistan-administered Kashmir. A strategic road, the Karakoram highway, passes through this area that connects China with its long-term ally Pakistan. Beijing has invested about $60bn (£48bn) in Pakistan’s infrastructure – the so-called China Pakistan Economic corridor (CPEC) – as part of its Belt and Road Initiative and the highway is key to transporting goods to and from the southern Pakistani port of Gwadar. The port gives China a foothold in the Arabian Sea.
In addition, China was unhappy when India initially banned all exports of medical and protective equipment to shore up its stocks soon after the coronavirus pandemic started earlier this year.
How dangerous could this get?
“We routinely see both armies crossing the LAC – it’s fairly common and such incidents are resolved at the local military level. But this time, the build-up is the largest we have ever seen,” says former Indian diplomat P Stobdan, an expert in Ladakh and India-China affairs.
“The stand-off is happening at some strategic areas that are important for India. If Pangong lake is taken, Ladakh can’t be defended. If the Chinese military is allowed to settle in the strategic valley of Shyok, then the Nubra valley and even Siachen can be reached.”
In what seems to be an intelligence failure, India seems to have been caught off guard again. According to Indian media accounts, the country’s soldiers were outnumbered and surrounded when China swiftly diverted men and machines from a military exercise to the border region.
This triggered alarm in Delhi – and India has limited room for manoeuvre. It can either seek to persuade Beijing to withdraw its troops through dialogue or try to remove them by force. Neither is an easy option.
“China is the world’s second-largest military power. Technologically it’s superior to India. Infrastructure on the other side is very advanced. Financially, China can divert its resources to achieve its military goals, whereas the Indian economy has been struggling in recent years, and the coronavirus crisis has worsened the situation,” says Ajai Shukla.
What next?
History holds difficult lessons for India. It suffered a humiliating defeat during the 1962 border conflict with China. India says China occupies 38,000km of its territory. Several rounds of talks in the last three decades have failed to resolve the boundary issues.
China already controls the Aksai Chin area further east of Ladakh and this region, claimed by India, is strategically important for Beijing as it connect its Xinjiang province with western Tibet.
Image copyright GETTY IMAGESImage caption India and China have a long history of border disputes
In 2017 India and China were engaged in a similar stand-off lasting more than two months in Doklam plateau, a tri-junction between India, China and Bhutan.
This time, too, talks are seen as the only way forward – both countries have so much to lose in a military conflict.
“China has no intention to escalate tensions and I think India also doesn’t want a conflict. But the situation depends on both sides. The Indian government should not be guided by the nationalistic media comments,” says Dr Long Xingchun of the CIWA in Chengdu. “Both countries have the ability to solve the dispute through high-level talks.”
Chinese media have given hardly any coverage to the border issue, which is being interpreted as a possible signal that a route to talks will be sought.
Pratyush Rao, associate director for South Asia at Control Risks consultancy, says both sides have “a clear interest in prioritising their economic recovery” and avoiding military escalation.
“It is important to recognise that both sides have a creditable record of maintaining relative peace and stability along their disputed border.”
China will not set an economic growth goal for this year as it deals with the fallout from the coronavirus pandemic.
It is the first time Beijing has not had a gross domestic product (GDP) target since 1990 when records began.
The announcement was made by Premier Li Keqiang at the start of the country’s annual parliament meeting.
The world’s second largest economy shrank by 6.8% in the first quarter from a year ago as lockdowns paralysed businesses.
“This is because our country will face some factors that are difficult to predict in its development due to the great uncertainty regarding the Covid-19 pandemic and the world economic and trade environment,” Premier Li said.
The country’s leadership has promised to boost economic support measures amid growing concerns that rising unemployment could threaten social stability.
The move comes as tensions between Beijing and Washington are becoming increasingly strained over the coronavirus pandemic, trade and Hong Kong.
On Thursday, President Donald Trump stepped up his attacks on China, suggesting that the country’s leader, Xi Jinping, is behind a “disinformation and propaganda attack on the United States and Europe.”
It came as Mr Trump and other Republicans have escalated their criticism of Beijing’s handling of the early stages of the outbreak.
Also on Thursday, China announced plans to impose new national security legislation on Hong Kong after last year’s pro-democracy protests.
The announcement was met with a warning from Mr Trump that the US would react “very strongly” against any attempt to gain more control over the former British colony.
Separately, two US senators have proposed legislation to punish Chinese entities involved in enforcing the planned new laws and penalise banks that do business with them.
Earlier this week, the US Senate unanimously passed a proposal to delist Chinese companies from American stock exchanges if they fail to comply with US financial reporting standards.
US-listed Chinese companies have come under increasing scrutiny in recent weeks after Luckin Coffee revealed that an internal investigation found hundreds of millions of dollars of its sales last year were “fabricated”.
American destroyer’s mission comes a week before Taiwanese president officially starts second term in office
Increased military activity in the region could have unintended consequences but unlikely to lead to direct conflict, observer says
The guided-missile destroyer USS McCampbell made a transit through the Taiwan Strait on Thursday. Photo: US Navy
The United States sent a warship through the Taiwan Strait on Thursday as the Chinese military embarked on more than two months of live-fire naval drills off the mainland’s northern coast.
According to Taiwan’s defence ministry, the Arleigh Burke-class guided-missile destroyer transited the narrow body of water separating Taiwan from mainland China from north to south “in a routine mission”.
“It is continuing its southward voyage and the military is monitoring its movement through the intelligence it has gathered,” the ministry said.
In a statement on its Facebook page, the US Pacific Fleet said the McCampbell transited the Taiwan Strait as part of ongoing operations in the Indo-Pacific.
Analysts said the passage was a response to the People’s Liberation Army’s increasing military activity near Taiwan and in the wider region.
“This will become a new routine as a kind of US security commitment to maintain stability in the Indo-Pacific region,” said Soong Hseik-wen, professor of strategic studies and international relations at National Chung Cheng University in Taiwan.
Beijing urges France to cancel contract to sell arms to Taiwan
13 May 2020
The PLA has staged a series of war games, including fly-bys and warship transits through the strait, in recent months in response to what Beijing sees as growing pro-independence moves by the Tsai government and her party. China has also warned the US against supplying weapons to the island, which Beijing considers to be a wayward province that must return to the mainland fold, by force if necessary.
Mainland China has suspended official exchanges with Taiwan since Tsai was first elected president in 2016 and refused to accept the one-China policy, which Beijing says must be the foundation for any talks.
The PLA has embarked on 11 weeks of naval exercises off the coast of Tangshan in northern China, barring all other vessels from a 25km (15 mile) radius of the drill area, according to the China Maritime Safety Administration.
Taiwanese support closer ties with US over China, few identify as solely Chinese, Pew Research survey finds
13 May 2020
Both Beijing and Washington have ramped up military activities near Taiwan in recent months during the coronavirus pandemic, moves that some observers say run the risk of miscommunication.
Alexander Huang Chieh-cheng, professor of strategic studies and international relations at Tamkang University in Taipei, said no one could exclude the possibility of unintended incidents when both the US and the mainland were stepping up their presence in the region.
“Rational analysts would however argue that the two nuclear powers are not likely to engage in or escalate to direct military conflict,” he said.
Huang said he believed cross-strait relations would worsen during Tsai’s second term in office, which begins on May 20.
“The already damaged relationship between Taiwan and mainland China has worsened since the pandemic mainly due to travel bans and Taiwan’s increased international visibility,” he said.
On Tuesday, Japan’s Kyodo News reported that the PLA was planning a large-scale beach landing exercise near Hainan province in August, simulating a takeover of the Pratas Islands, which are controlled by Taiwan and also known as the Dongsha Islands.
In Taipei, Major General Lin Wen-huang said Taiwan was monitoring the PLA movements and “has contingency plans in place for the South China Sea to strengthen combat readiness and defence preparedness on both the Spratly and Pratas islands”.
Taiwan’s coastguard also announced on Wednesday that its Pratas Islands Garrison was scheduled to conduct an annual live-fire exercise in June to ensure the “effectiveness of various mortar and machine-gun positions”.
Taiwan shows off its military power after presidential election
Shanghai-based military commentator Ni Lexiong said that both the US Navy and PLA were increasing activities during the pandemic because neither side could afford to show weaknesses that the other might take advantage of.
The destroyer’s passage and the PLA’s drills were all part of such efforts, Li said.
But he agreed that both countries were unwilling, unable, and unlikely to have a real conflict.
“They are both bluffing. It’s a fake crisis,” he said. “A pandemic always ends or prevents a war if you look at history.
“I also don’t believe the PLA would want to take over the Dongsha or Taiping islands [in the South China Sea], because these islets alone are not worth a military campaign and all the consequences of that. The only target valuable enough for the PLA is Taiwan.”
— As the continued global spread of COVID-19 is weighing on the world economy, China’s foreign trade is under considerable downward pressure.
— Many export-oriented companies in China are turning to the domestic market for a lifeline while grappling with dropping overseas orders as major markets remain in the grip of the pandemic.
by Xinhua writers Zhang Yizhi, Li Huiying, Hu Guanghe, Xu Ruiqing
FUZHOU, May 9 (Xinhua) — Walking back and forth between shelves of neatly stacked shoes, some 20 live streamers dashed at the instructions of their followers on the phone, grabbing a shoe now and then from the shelves for a close-up in front of the camera.
At around eight o’clock every night, the supply chain platform 0594 in the city of Putian, east China’s Fujian Province, springs to life as live streamers flock to the exhibition area to sell shoes produced by the local manufacturers, many of which are troubled by the cancellations or delays of overseas orders amid the global coronavirus pandemic.
“To get rid of the excess inventory, many manufacturers in Putian are turning to live streaming to explore the domestic market,” said Chen Xing, general manager of 0594. “We are now cooperating with over 40 manufacturers and there will be more of them joining us in the future.”
The platform is also building an internet celebrity incubator and has so far organized seven rounds of influencer training courses enrolling more than 200 attendees.
Huang Huafang, 39, signed up for the two-day crash course in late March and soon after started her first live streaming session. She works from around 2 p.m. to 10 p.m., attracting over 500 followers and selling more than 20 pairs of shoes every day.
Though she is not a well-known live streamer, she is optimistic about the future. “There is a long way to go, but I believe live streaming is a trend. It is an essential skill for anyone who wants to market online,” said Huang.
A staff sells shoes through live streaming at an e-commerce warehouse in Putian, southeast China’s Fujian Province, May 7, 2020. (Xinhua/Lin Shanchuan)
According to Chen, the platform 0594 sold almost 130,000 pairs of shoes in April alone. As the domestic economic outlook continues to pick up, the sales target of May has been set at 200,000 pairs.
Like manufacturers in Putian, a city with a large number of export-oriented enterprises, many Chinese factories are turning to the domestic market for a lifeline, while grappling with dropping overseas orders as major markets remain in the grip of the pandemic.
ADAPT OR DIE
With decades of experience in manufacturing and developing products for overseas clients, some export-oriented companies in China are rolling out products catering to the domestic market.
After months of gloomy business, Wu Songlin, general manager of Putian-based Hsieh Shun Footwear Co., Ltd., heaved a sigh of relief as trucks loaded with therapeutic shoes tailored to the home market left his factory.
It was the first shipment for the domestic market since Wu and his partners started the company in 2010. In the past, his company only had two clients, one from Europe and the other from Japan. Business used to run smoothly and life was good.
But his factory was on the brink of a shutdown in March when the coronavirus pandemic started to ravage the global economy. No new orders came in and shipments of existing orders were requested to be delayed until June.
People work in a footwear workshop in Putian, southeast China’s Fujian Province, April 27, 2020. (Xinhua/Lin Shanchuan)
“Orders were canceled after completion of production, and our capital flow is stuck in our inventory. The pressure is mounting to keep the factory running,” Wu said. “By the end of June, workers would be left with no work to do as soon as we complete the existing orders.”
After losing almost all their orders from overseas clients, the desperate shoemaker turned to the domestic market. He called one of his old business partners and secured an order for massage footwear, which is selling like hot cakes in the domestic market as health tops the agenda in the time of the novel coronavirus.
The factory produced 10,000 pairs of massage shoes in April, and the number is expected to reach 30,000 in May, enough to keep the production lines running.
Thanks to the company’s quick adaptation, about 200 workers kept their jobs in the factory, while 20 percent were furloughed and the remaining workers were arranged to work in other companies as part of the city’s employee sharing program.
“If domestic orders keep coming in, our operation will hopefully get back to normal by September when the monthly output of massage shoes will reach 90,000,” Wu said. “By then the company will live and thrive without any orders from overseas customers.”
A woman works in a workshop of Hsieh Shun Footwear Co., Ltd. in Putian, southeast China’s Fujian Province, May 7, 2020. (Xinhua/Lin Shanchuan)
But switching to another market is not easy, explained Wu. In the past, export-oriented factories were only in charge of manufacturing, while brands would take care of sales, promotion as well as customer support.
“If you are selling to the domestic market, you need to have your own brand and marketing capacity,” he said. “Working with e-commerce platforms could be one way out, but it’s more important to understand domestic consumers and meet their needs.”
CUSTOMIZE THE FUTURE
For years, many export-focused manufactures have been trying to climb up the value chain and tap the uncharted waters of the domestic market. As the pandemic continues to spread, there is a strong push for them to embrace customized manufacturing.
In an experience store located in downtown Putian, customers line up waiting to have their feet measured on a smart device. After a few seconds, they get their readings on the phone, and a few swipes and clicks later, they place their orders with unique features, colors, and shapes.
Adjacent to the experience store, there is a flexible manufacturing workshop, which gives quick responses to orders and produces shoes following the customized demands of individual buyers.
SEMS, a longstanding sports footwear manufacturer that has established a partnership with several international brands, started to adopt flexible manufacturing years ago in an effort to adapt to the evolving domestic market.
A customer has her feet measured on a smart device in sports footwear manufacturer SEMS in Putian, southeast China’s Fujian Province, May 8, 2020. (Xinhua/Lin Shanchuan)
Customization gives consumers the benefit of products that fit their needs, and at the same time allows factories to utilize improved workflows and technology to maintain high output and omit the process of inventory and distribution, said Zhu Yizhen, the executive vice president of the company.
“Currently we only sell over 100 pairs of customized shoes a day, but we are at the dawn of a new era,” Zhu said. “We hope more companies awaken to the developing trend and join in the practice of mass customization.”
Customer to manufacturer, or C2M, which allows consumers to place orders directly to factories for customized products, has become a buzzword among export-oriented manufacturers hoping to reach domestic consumers amid the pandemic.
Li Junjie, who runs a ceramic flowerpot plant in Fujian’s Dehua County, one of the manufacturing centers of ceramics in China, did not sell a single pot to his overseas customers since the coronavirus outbreak in late January.
The factory used to export 30 percent of its flowerpots to the United States and Spain, but Li managed to make up for the lost deals by selling on domestic e-commerce platforms. Instead of bulk orders placed by foreign clients, domestic consumers tend to purchase customized products in small amounts.
Photo shows the automatic production line of a customized workshop in sports footwear manufacturer SEMS in Putian, southeast China’s Fujian Province, May 8, 2020. (Xinhua/Lin Shanchuan)
With the big data provided by e-commerce platforms, Li can tell which items will be a hit so as to increase their production and develop new products based on a thorough analysis of different consumer groups.
“Our online sales almost doubled over the past year, and we have sold over 100,000 customized pots this year, thanks to the C2M business model,” Li said.
Li’s company is one of many Chinese small and medium-sized enterprises (SMEs) that have benefited from the e-commerce giant Alibaba’s Spring Thunder Initiative, which is aimed at helping export-focused SMEs expand into new markets.
The initiative will also help some SMEs to transform and develop their business in the Chinese market through measures such as resource support, fee reductions, and fast-track processing.
Incident happened on Friday afternoon in waters close to Diaoyu Islands, which are controlled by Tokyo but claimed by Beijing
Japanese fishing boat had three crew members on board but no one was hurt, reports say
The Diaoyu Islands are the focus of a long-running territorial dispute between China and Japan. Photo: Kyodo
Japan said it deployed patrols and issued warnings to a group of Chinese coastguard vessels spotted pursuing a Japanese fishing boat in the hotly contested waters of the East China Sea on Friday.
The Japan Coast Guard said on Saturday that four Chinese coastguard vessels entered waters close to the Diaoyu Islands – a group of uninhabited islands controlled by Tokyo and known locally as known as Senkaku – at about 4pm.
The face-off took place about 50 minutes later, when two of the Chinese vessels began to chase a Japanese fishing boat in a stretch of water about 12km (7.5 miles) southwest of Uotsuri, one of the largest islands in the group, news agency Jiji Press cited the coastguard’s regional headquarters in Naha as saying.
After the maritime agency sent patrol ships to the scene and issued a warning over the radio, the Chinese ships left the area, the report said.
The fishing vessel had three crew members on board at the time of the pursuit but no one was hurt, it said.
An unnamed official from the Japanese coastguard was quoted as saying that “we don’t think that a dangerous event has happened”.
Earlier on Friday, China Coast Guard said on its official Weibo social media account that a fleet of its vessels had “patrolled the territorial waters around the Diaoyu Islands”.
The four Chinese vessels were in the region for about two hours, Japan’s Kyodo News reported.
China’s foreign ministry did not immediately respond to requests for comment.
The uninhabited but resource-rich islands and reefs of the East China Sea have been the setting for territorial disputes between China and Japan for decades, though relations between the two Asian giants have been steadily improving in recent years.
Japanese Prime Minister Shinzo Abe has visited Beijing twice since 2018, while officials from the two sides are working to rearrange a state visit to Japan by Chinese President Xi Jinping that had been planned for last month but had to be postponed because of the coronavirus pandemic.
The Japanese government bought the Diaoyu Islands from a private owner in 2012, but Beijing claims them. Patrols by Chinese coastguard vessels are common in the area, with the latest – excluding Friday – happening on April 17.
Beijing has also sought to assert its sovereignty in the region by imposing annual summer fishing bans in the East China Sea, including in the waters off the Diaoyu Islands. This year’s ban began on May 1 and runs until August 16.
People’s Liberation Army has officially recorded no infections but disease fears have delayed recruitment, training and operations
Analysts say Sars experience guided military’s prompt response, but combat effectiveness has been affected
Chinese military medical personnel arriving in Wuhan in February to assist with the coronavirus outbreak response to the February. Photo: Reuters
China’s military may have been spared any coronavirus infections, but the global health crisis has slowed the progress of Chinese President Xi Jinping’s plan to transform the People’s Liberation Army into a modern fighting force capable of long-range power-projecting operations, experts say.
According to China’s defence ministry, the world’s largest armed force – with about 2.3 million personnel – has had zero confirmed cases of Covid-19. In contrast, the US and Russian militaries, ranked second- and third-largest in the world, have reported more than 4,000 and 1,000 respectively.
But the PLA has been affected in other ways by the disease, which was first reported in Wuhan in December before going on to infect 3.9 million people around the world to date.
Safety concerns delayed its annual spring recruitment programme – it has been rescheduled for August – while the PLA Navy was forced to change its training arrangements, switching to classroom study of military theory and tactics, according to Xinhua.
“The PLA is still a conscription army and, given its large turnover of soldiers every year and the late recruitment and training plan this year, the coronavirus pandemic has already affected combat effectiveness,” said Adam Ni, director of the China Policy Centre, an independent, non-profit research organisation based in Canberra, Australia.
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The navy’s operations, in particular, would have been affected, according to Charlie Lyons Jones, a researcher from the Australian Strategic Policy Institute’s defence and strategy programme.
“The Chinese navy, short of highly effective disease control measures, is unlikely to avoid similar outbreaks of the novel coronavirus on board its warships,” he said.
“Therefore, even if the PLA Navy currently has zero personnel infected by the novel coronavirus, its position as a navy that can operate effectively in a period of higher-than-normal tension remains precarious at best,” Jones said. He also questioned Beijing’s claims that the military was virus-free.
“The PLA played an important role in China’s response to the coronavirus outbreak in Wuhan … The idea that none of these personnel working on the front lines in Wuhan became infected by the novel coronavirus would be inconsistent with the experiences of countries from around the world,” he said.
More than 4,000 military medical workers were sent to Wuhan as part of China’s effort to contain the outbreak at ground zero – which included the rapid-built emergency field facility, the Huoshenshan hospital – and their efforts were highlighted in a documentary screened recently by state broadcaster CCTV.
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At the time, rumours were rampant that the Chinese military had been affected by the coronavirus, fuelled by a report on February 17 by the official PLA Daily that some soldiers had been placed in quarantine and Yu Qiusong, captain of the Changzhou type 054A frigate, was isolating in a guest house. The news report did not mention why the personnel were in quarantine.
But analysts said that whether the official numbers were accurate, the PLA’s closed management, fast response and past experience with severe acute respiratory syndrome (Sars) gave China’s military an advantage in keeping the coronavirus at bay.
Zhou Chenming, a Beijing-based military observer, said a key reason for the less serious hit to the PLA compared to other forces was its speed in recognising the severity of the situation.
“What’s more, the PLA has its own logistic support system that can help minimise its contact with the outside world, thus reducing the possibility of contracting the virus,” he said.
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According to Xinhua, the PLA’s Centre for Disease Control and Prevention drew up an emergency response plan and mobilisation arrangements on January 20, the same day Xi issued an instruction to the public that the virus must be “resolutely contained”.
Timothy Heath, a senior international defence research analyst with the Rand Corporation, a US think tank, said China’s military had benefited from its less international role, compared to US forces.
“The US is a globally distributed force while the Chinese military largely operates on the mainland. The US thus faces challenges in containing the disease that the Chinese military does not have to face … and the US military has a large range of missions and tasks it carries out to counter threats to its allies and partners, as well as to US security. This complicates efforts by the US military to carry out disease control measures,” he said.
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