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.
– The last nine poverty-stricken county-level regions in east China’s Anhui Province have been removed from the country’s list of impoverished counties.
– This marks that all county-level regions in the Yangtze River Delta, consisting of Shanghai and the provinces of Jiangsu, Zhejiang and Anhui, have been officially lifted out of poverty for the first time in history.
HEFEI, April 29 (Xinhua) — Sitting in front of his smartphone, Zhang Chuanfeng touts dried sweet potatoes to viewers on China’s popular video-sharing app Douyin, also known as TikTok.
“These are made from sweet potatoes I grew myself. They are sweet and have an excellent texture,” said Zhang while livestreaming in Tangjiahui Township of Jinzhai County in east China’s Anhui Province. Tucked away in the boundless Dabie Mountains, the township used to have the biggest poor population in the county.
Aerial photo taken on April 16, 2020 shows residential buildings in Dawan Village of Jinzhai County, east China’s Anhui Province. (Xinhua/Liu Junxi)
Jinzhai County is among the last nine county-level regions in Anhui that have been removed from the country’s list of impoverished counties, according to an announcement issued by the provincial government Wednesday. They are also the last group of county-level regions that bid farewell to poverty in the Yangtze River Delta.
E-COMMERCE
Zhang might seem like a typical e-commerce businessman reaping success in China’s booming livestreaming industry. But his road to success has been a lot bumpier: he suffers from dwarfism.
A little more than 1.4 meters tall, Zhang has a babyface, making him “look like a junior school student,” he said. But the man, 38, is the father of a nine-year-old boy.
For Zhang, life was tough before 2014. “Nobody wanted me because of my ‘disabilities’ when I went out to look for jobs,” he said. “I was turned down again and again.”
Zhang was put on the government’s poverty list in 2014 as China implemented targeted poverty-relief measures. With the help of local officials, he got a bank loan of 10,000 yuan (about 1,400 U.S. dollars) and bought 22 lambs. He tended the animals whole-heartedly and seized every opportunity to learn how to raise them more professionally.
Zhang Chuanfeng feeds his lambs in Zhufan Village of Jinzhai County, east China’s Anhui Province, April 26, 2017. (Xinhua/Zhang Duan)
Within a year, the number of his lambs expanded to hundreds. In 2016, Zhang’s earnings exceeded 100,000 yuan, more than enough for him to cast off poverty.
Riding on this success, Zhang began to seek new opportunities. He rented a shop and started selling products online to embrace an e-commerce strategy the local government introduced in 2017.
More than 100 online shops, including Zhang’s, in the county have helped more than 7,000 poverty-stricken households sell about 73 million yuan worth of local specialties since 2018. Zhang alone earned 500,000 yuan from a sales revenue of 5 million yuan last year.
A villager arranges local specialties for sale at Dawan Village of Jinzhai County, east China’s Anhui Province, April 17, 2020. (Xinhua/Liu Junxi)
WICKERWORK SUCCESS
About 100 km north of Jinzhai lies Funan, a place that used to be vulnerable to constant floods.
Zhang Chaoling, who lives by the Huaihe River in Funan County, had to flee her hometown at a young age due to floods, but has flourished on a willow plantation along the river later.
“The land is largely covered by silt following continual flooding in the past. It is an ideal place to plant willows and make wickerwork,” Zhang said.
Zhang left her hometown for Guangzhou in 1993 and found a job in a garment factory. A few years later, she founded a trading company with her husband in Guangzhou, selling wickerwork products from her hometown to other countries.
Zhang returned to her hometown and set up a wickerwork production base in 2011. Funan is famous for its delicate wickerwork. Skilled craftsmen traditionally use local willow as a raw material to weave products such as baskets, furniture and home decorations.
A villager arranges wickerwork products in Funan County, east China’s Anhui Province, April 15, 2020. (Photo by Zhou Mu/Xinhua)
“The flood is well controlled now. I remember the last huge flood came in 2007,” Zhang said.
Taking advantage of the fertile land along the Huaihe River, she plants over 130 hectares of willow trees and employs hundreds of locals mostly in their 50s and 60s.
“I can process 100 to 150 kg of willow twigs per day, from which I make around 80 yuan,” said Geng Shifen, who peels willow twigs with a clamp next to the plantation.
A total of 130,000 people are engaged in the wickerwork industry in Funan, creating an output of nearly 9 billion yuan in 2019, and helping 15,000 locals shake off poverty, local statistics showed.
POVERTY REDUCTION FEAT
The Anhui provincial government Wednesday announced that its last nine county-level regions including Jinzhai and Funan are removed from the country’s list of impoverished counties.
This marks that all 31 impoverished county-level regions in Anhui have shaken off poverty, echoing China’s efforts to eradicate absolute poverty by the end of 2020.
With the announcement, all county-level regions in the Yangtze River Delta have been officially lifted out of poverty for the first time in history.
A bus runs on a rural road in Jinzhai County, east China’s Anhui Province, April 17, 2020. (Xinhua/Liu Junxi)
Covering a 358,000-square-km expanse, the Yangtze River Delta, consisting of Shanghai and the provinces of Jiangsu, Zhejiang and Anhui, is one of the most populated and economically dynamic areas in China, contributing one-fourth of the country’s GDP.
Anhui had a population of 63.65 million as of 2019, official data showed. The poor population in the province had decreased from 4.84 million in 2014 to 87,000 in 2019, and the poverty headcount ratio had been reduced from 9.1 percent to 0.16 percent during the period, according to the provincial poverty relief office.
A county can be removed from the list if its impoverished population drops to less than 2 percent, according to a national mechanism established in April 2016 to eliminate poverty in affected regions. The ratio can be loosened to 3 percent in the western region.
By the end of 2019, 5.51 million people in China were still living in poverty.
“We will continue our work to prevent people from returning to poverty, and help the remaining poor population shake off poverty by all means,” said Jiang Hong, director of the Anhui provincial poverty relief office.
BEIJING/SHANGHAI (Reuters) – China expects to import more soybeans and pork this year following the novel coronavirus outbreak and African swine fever, which has decimated its pig herds.
Soybean imports are forecast at 92.48 million tonnes this year, rising to 96.62 million tonnes in 2025 and 99.52 million tonnes in 2029, an official from the agriculture ministry told a video conference on the outlook for agriculture released on Monday.
Pork imports this year are seen rising to 2.8 million tonnes, a 32.7% increase from the previous year.
China is a key buyer and consumer of soybeans and pork globally, and typically imports millions of tonnes of soybeans per year to crush for meal to feed its livestock.
The African swine fever outbreak, however, had slashed China’s pig herd by over 40% last year, reducing supplies in the world’s biggest pork consumer.
Combined with the coronavirus outbreak, which hit the transport of pigs and delayed the restart of slaughtering plants, prices of China’s favourite meat rose to record levels in February.
China has been increasing pork imports in recent months to make up for the drop in domestic supply.
Despite the expected surge in imports, China’s 2020 pork consumption is forecast to fall to 42.06 million tonnes, down 5.6% year-on-year, hit by high prices and a fall in consumer demand due to the coronavirus outbreak, according to the agriculture ministry.
In line with the slowing consumption, China’s slaughtered pig herd this year will fall 7.8% year-on-year to 501.49 million heads. Pork output this year will also decline to 39.34 million tonnes from 2019, but will rebound to around 54 million tonnes in 2022.
In the longer term, however, pork imports are expected to gradually fall, the ministry forecast, while beef and mutton imports are set to increase in the next decade.
Meanwhile, China’s domestic soybean output is seen at 18.81 million tonnes in 2020, a 3.9% gain from the previous year, while crushing volumes were pegged at 85.98 million tonnes.
Soybean consumption will increase steadily and continue to rely mainly on imports in the next 10 years, said a ministry official.
The ministry also said China’s corn acreage and output are both set to increase in 2020, with production forecast to reach over 260 million tonnes this year, while annual rice output is expected to hold steady above 200 million tonnes per year in the next 10 years.
BEIJING, April 18 (Xinhua) — New media platforms are reshaping China’s documentary industry, ushering in a new era of vigorous development, said Zhang Tongdao, director of the Documentary Center with Beijing Normal University.
There is a rapid growth of new media companies in the documentary market, according to an annual study report of the development of Chinese documentary in 2020, which was released Saturday by the center, the China Intercontinental Communication Center and other institutions.
China’s total investment in documentary making was 5.04 billion yuan (about 710 million U.S. dollars) last year, and the country was blessed with 6.66 billion yuan in total output value, according to the report.
“More and more documentaries are broadcast on the internet, even only on the internet media, which complement those aired on television,” Zhang said.
Some documentaries, including “Flavorful Origins: Chaoshan Cuisine” by Tencent video and the second season of “The Story Of Chuaner” by video-sharing platform Bilibili, gained the brand value in 2019 through exclusive streaming on the platforms.
The report also showed that the documentary production capacity of new media companies reached a new height in 2019.
Last year, Tencent produced 23 documentaries on its own, accounting for about one-third of its total online projects throughout the year. Bilibili produced and launched 16 documentaries, totaling 55.6 hours, while iQiyi, also an online platform, produced or co-produced 15 documentaries, said the report.
The report added that documentary producers and streamers are also foraying into the short video field, varying versions such as shorter or longer in length for different platforms.
Between January 20 and April 4, PM2.5 levels across the country fell by more than 18 per cent, according to the environment ministry
But observers say that as soon as the nation’s factories and roads get back to normal, so too will the air pollution levels
Blue skies were an unexpected upside of locking down cities and halting industrial production across China. Photo: AFP
China’s air quality has improved dramatically in recent weeks as a result of the widespread city lockdowns and strict travel restrictions introduced to contain the
. But experts say the blue skies could rapidly disappear as factories and roads reopen under a government stimulus plan to breathe new life into a stalled economy.
According to the Ministry of Ecology and Environment, between January 20 and April 4 the average concentration of PM2.5 – the tiny particles that pose the biggest risk to health – fell by 18.4 per cent from the same period of last year.
Meanwhile, the average number of days with good air quality – determined as when the air pollution index falls below 100 – rose by 7.5 per cent, it said.
Satellite images released by Nasa and the European Space Agency showed a dramatic drop in nitrogen dioxide emissions in major Chinese cities in the first two months of 2020, compared with a year earlier.
According to Nasa, the changes in Wuhan – the central China city at the epicentre of the initial coronavirus outbreak – were particularly striking, while nitrogen dioxide levels across the whole of eastern and central China were 10 to 30 per cent lower than normal.
The region is home to hundreds of factories, supplying everything from steel and car parts to microchips. Wuhan, which has a population of 11 million, was placed under lockdown on January 23, but those restrictions were lifted on Wednesday
.
Air pollution is likely to return to China’s cities once the lockdowns are lifted. Photo: Reuters
Nitrogen dioxide is produced by cars, power plants and other industrial facilities and is thought to exacerbate respiratory illnesses such as asthma.
The space agency said the decline in air pollution levels coincided with the restrictions imposed on transport and business activities.
That was consistent with official data from China’s National Development and Reform Commission, which recorded a 25 per cent fall in road freight volume and a 14 per cent decline in the consumption of oil products between January and February.
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Liu Qian, a senior climate campaigner for Greenpeace based in Beijing, said the restrictions on industry and travel were the primary reasons for the improvement in air quality.
According to official data, in February, the concentrations of PM2.5, nitrogen dioxide and sulphur dioxide – a toxic gas that comes mostly from industrial burning of coal and other fossil fuels – all fell, by 27 per cent, 28 per cent and 23 per cent, respectively.
“The causes of air pollution are complicated, but the suspension of industrial activity and a drop in public transport use will have helped to reduce levels,” Liu said.
As the epicentre of the Covid-19 pandemic has shifted to the United States and
, human and industrial activity in China is gradually picking back up, and so is air pollution.
Lauri Myllyvirta, lead analyst with the Centre for Research on Energy and Clean Air in Helsinki, said that levels of nitrogen dioxide pollution, measured both by Nasa satellites and official stations in China, started inching back up in the middle of March and had returned to normal levels by the end of the month.
That coincided with the centre’s findings – published on Carbon Brief, a British website on climate change – that coal consumption at power plants and oil refineries across China returned to their normal levels in the fourth week of March.
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Ma Jun, director of the Institute of Public & Environmental Affairs, a Beijing-based charity, said a stimulus plan to kick-start the economy would have a significant impact on air pollution.
“Once industrial production is fully resumed, so are the emission levels,” he said. “Unless another outbreak happens and triggers another lockdown, which would be terrible, the improvement achieved under the pandemic is unstable and won’t last long.”
After the 2008 financial crisis, Beijing launched a 4 trillion yuan (US$567.6 billion) stimulus package that included massive infrastructure investment, but also did huge damage to the environment. In the years that followed, air pollution rose to record highs and sparked a public backlash.
Even before the Covid-19 outbreak, China’s economy was slowing – it grew by 6.1 per cent in 2019, its slowest for 29 years – and concerns are now growing that policymakers will go all out to revive it.
“Local governments have been under huge pressure since last year, and there are fears that environmental regulations will be sidelined [in the push to boost economic output],” Ma said.
But Beijing had the opportunity to get it right this time by investing more in green infrastructure projects rather than high-carbon projects, he said.
“A balance between economic development and environmental protection is key to achieving a green recovery, and that is what China needs.”
SHENYANG, April 5 (Xinhua) — Huo Chunlei, who runs a hotpot restaurant in Shenyang, capital of northeast China’s Liaoning Province, said he did not lay off any of his staff, although the restaurant is having difficulties for reopening after two months of closure in China’s nationwide measures of coronavirus control.
A few weeks after Chinese provincial-regions with low risk of the novel coronavirus gradually resumed work and production, shops and eateries have reopened, and roads become bustling again, as hundreds of millions of people confined at home for weeks in compliance with epidemic prevention rules get back to a normal life.
Huo’s restaurant has been in operation for a week. Only half of the tables are filled at dinnertime. The revenue is barely enough to cover the expenses of the house rent and employee wages, he said.
However, he said his business is able to survive because of the government’s bailout policies. For example, the approval of deferred payment of social insurance premiums for his employees alone can save him 80,000 yuan (about 11,250 U.S. dollars) a month.
“The staff are willing to stay, as we are all confident in tiding over the difficulties together,” he said.
The local governments at all levels have rolled out a slew of measures to shore up the catering business, including cutting taxes, reducing house rent as well as water and electricity fees.
The governments in Liaoning, Shandong, Jiangsu and Zhejiang provinces have issued coupons with a value ranging from 10 million yuan to 100 million yuan to encourage people to spend on dining out.
Before the production resumption, there were some consumer councils’ surveys showing that consumers had suppressed consumption desire for dining out and shopping as well as going to movie theaters, gymnasiums and tourist spots after the epidemic crisis ends.
“The so-called retaliatory consumption has not yet appeared in the catering industry, as people are still wary about the infection risk, but there will be a gradual recovery growth,” said Chen Heng, executive director of Hainan Hotel and Catering Industry Association in the southernmost Chinese province of Hainan.
“Before reopening, we increased the distances between tables, but with reduced tables, there are still many empty tables at dinner time. My restaurant used to have all seats full and even queues,” said Huo.
Like Huo, Lin Lunheng, founder of the Fuzhou Super Dinner Co. Ltd. in southeast China’s Fujian Province, is also worried about business.
“Although the chain stores have reopened, revenues have decreased by 70 percent compared with that before the epidemic. This is a big blow to restaurants,” said Lin.
The Italian style chain restaurant has offered e-coupons to draw customers.
As the spring weather is getting more and more pleasant, consumers’ desire for dining out and travel is growing. According to a survey report jointly released by the China Travel Academy and Trip.com Group on March 19, Chinese are longing for tours across the country, with Yunnan, Hainan and Shanghai among the top destinations.
not long ago – unless they have a child addicted to the wildly popular app, on which users make and share short, amusing videos.
It has grown explosively since its 2016 launch, with 800 million monthly active users now – 300 million of them outside China in places such as India (120 million) and the
(37 million). And many have no idea it is owned by a Chinese company, ByteDance.
The first Chinese app to mount a real global challenge to Facebook and Instagram, it is seen as one of the shiniest new weapons in the US-China technology war. And a boost, perhaps, to Chinese soft power.
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It experienced a growth spurt in 2019 that analysts predicted would slow a little this year. That, however, was before the coronavirus, which seems to be giving the app a bump, especially beyond its core teenage fan base.
As pandemic fears rise and millions are stuck indoors, major Hollywood celebrities such as Jennifer Lopez, 50, have taken to posting their own all-singing, all-dancing videos, which then go viral on other media platforms.
Even the World Health Organisation has jumped on the bandwagon, joining the app in late February to share public health advice.
The TikTok logo on a smartphone. Photo: Getty Images
But to some, the growth of TikTok is far from benign.
Privacy advocates and several US congressmen want to rein in the app over concerns it may censor and monitor content for the Chinese government, and be used for misinformation and election interference. This despite the fact that TikTok keeps its servers outside China and swears it will not hand over user data.
Are these fears justified – or fuelled by political and anticompetitive motives?
Thinkers such as Yuval Noah Harari warn that the coronavirus pandemic could be a watershed in the history of mass surveillance.
But Eric Harwit, a professor of Asian studies at the University of Hawaii, does not buy such arguments against TikTok, especially given that 60 per cent of its US users are aged 16 to 24.
“ByteDance has done a pretty good job of having a firewall between TikTok and the Chinese version of it, Douyin.
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“Also, many users in the US are teens and they’re not a particularly useful source of national security information.
“So I’d say the concerns are motivated more by a general fear of any kind of Chinese telecommunication application rather than actual attempts to siphon off valuable US intelligence information.
“And Facebook and other American companies have similar products,” Harwit points out. “US government officials will always want to protect American commercial interests.”
Sarah Cook, a China analyst for Freedom House – the US government-funded think tank – disagrees.
“We have concerns about how Facebook and Twitter deal with information affecting electoral politics, and that’s magnified if you’re talking about a Chinese company that now has a user base that rivals theirs.”
Chinese officials, she argues, have shown a willingness to censor and manipulate information well beyond their country’s borders – for instance, regarding the scale of the initial outbreak in Wuhan, an obfuscation that may have exacerbated its impact abroad.
“For those who think Chinese government censorship is only Chinese people’s problem, this pandemic shows how much that’s not the case.
“And even if it’s not happening right now with TikTok, the concern is that Chinese companies are beholden to their government, whether they want to be or not.
“I’m not saying block TikTok entirely,” she says. “It’s a question of looking at it in a democratic system and deciding on reasonable oversight and safeguards to protect users and information flows when that time comes.”
When it comes to expanding China’s cultural influence, though, neither Cook nor Harwit believes the app is especially effective.
Most people are oblivious to its Chinese origins, which the user experience does not reflect in any way. So there is no goodwill-generating soft power of the sort wielded by, say,
If anything, TikTok often promotes the increasingly homogenous, Western-leaning culture seen on many globally popular social media apps.
So says Morten Bay, a lecturer in digital and social media at the University of Southern California’s Annenberg School for Communication and Journalism.
“A semi-Western culture, with small variations of local culture, is becoming the norm on social media. And Chinese soft power is difficult to assert because there’s no value difference.”
And even if Chinese tech companies keep taking bigger bites of the Western market, he is sceptical of China’s “ability to leverage that for soft power in a geopolitical sense”.
“Because there is a very big apparatus pushing against China in that regard. As soon as TikTok started gaining traction in the US, people came out against it, trying to make everyone aware of the privacy and geopolitical issues.
The #KaunsiBadiBaatHai campaign on TikTok aims to raise awareness about women’s safety issues in India. Image: TikTok
“So China faces a lot of resistance,” Bay concludes. “And I’m not sure a social media platform on its own can do much about that.”
Still, if you had to back a horse in this race, TikTok would be it, says Zhang Mengmeng.
When she and her colleagues from global industry analysis firm Counterpoint Research visited the company, they were impressed by its research and development capabilities.
“Because they’re a very young company, their pace for incubating new projects is a lot faster, especially compared to successful but older internet companies in China which have been around for 15 to 20 years.
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“They have lots of little start-up projects within the company and their organisational structure is very flat – it doesn’t matter what your age is, if you have a good idea, you get promoted very quickly.”
TikTok’s rise is also emblematic of a broader role reversal in the US-China tech war, she believes.
“Before, the US was more advanced in terms of internet development and China seemed to just copy its new ideas. Now, this is reversing. There are so many people in China using the internet that start-ups there can test ideas very easily.
“So now it seems like a lot of US companies are trying to see what ideas are coming out of China.” ■
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
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
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.”
Around two thirds of the total number of flights scheduled every day in February were cancelled, placing huge financial pressure on airlines and airports
China’s aviation industry has also been affected by a series of restrictions by other countries and airlines, with British Airways extending its suspension until mid-April
The cancellation of around 10,000 flights a day, or around two thirds of the total number of flights scheduled every day in February, has placed huge financial pressure on airlines and airports. Photo: Kyodo
A one-way air ticket from the coastal economic hub of Shanghai to the inland municipality of Chongqing, a journey of over 1,400km (870 miles), now costs less than a cup of coffee, with Chinese airlines slashing prices in a bid to boost weak domestic demand amid the coronavirus outbreak.
The cancellation of around 10,000 flights a day, or around two thirds of the total number of flights scheduled every day in February, has placed huge financial pressure on airlines and airports.
The Civil Aviation Administration of China said in a notice on Tuesday that flights should resume gradually as part of the country’s efforts to return economic and social life back to normal, but passengers are still reluctant to fly with the deadly outbreak still not fully under control.
The one-way flight from Shanghai to Chongqing is being offered for just 29 yuan (US$4.10) by China’s biggest low-cost carrier, Spring Airlines, as a special offer for its frequent flyer club members, while a tall caffe latte at Starbucks in China costs 32 yuan (US$4.5).
Many Chinese carriers do receive subsidies for operating key domestic routes, so this also skews the economics as well Luya You
A one-way ticket from Shanghai to Harbin, the capital of the northern Heilongjiang province, a distance of over 1,600km (994 miles), costs just 69 yuan (US$9.80).
Shenzhen Airlines, a division of state-owned carrier Air China, is also running special offers to Chongqing, with a one-way ticket for the 1000km (621 miles) journey from Shenzhen costing just 100 yuan (US$14), around 5 per cent of the standard price of 1,940 yuan (US$276).
Chengdu Airlines, a unit of Sichuan Airlines, which counts China Southern Airlines as a shareholder, is also offering cheap one-way flights from Shenzhen to Chengdu, a distance of over 1,300km (808 miles), for just 100 yuan.
“Considering lower average costs of operating in mainland China, carriers could potentially offer deeper discounts while making slim profits or just breaking even,” said Luya You, an aviation analyst with Bank of Communication International. “As outbreak numbers stabilise or even decline, carriers will likely adjust their fares as well, so these low fares will not last if the situation quickly turns for the better.
“Many Chinese carriers do receive subsidies for operating key domestic routes, so this also skews the economics as well. If it is a key route, for example, the carrier may choose to continue operating regardless of fares or loads as the route constitutes a major link in the domestic network infrastructure.”
China’s aviation authority confirmed earlier this month that between January 25 and February 14, which included the Lunar New Year holiday, the average daily passenger traffic in China was just 470,000, representing a 75 per cent drop from the same period last year.
China’s aviation industry has also been affected by a series of restrictions by other countries and airlines, with British Airways last week extending its suspension of flights to China until after the Easter holiday in mid-April following travel advice from the British government.
The novel coronavirus, which causes the disease officially named Covid-19, has infected more than 78,000 people and killed 2,700 in China. In recent days, South Korea, Italy and Iran have all reported a surge in new cases, raising fears over the spread of the coronavirus.
“The flight suspensions will track the outbreaks, but not likely lead them. If there are more outbreaks, expect more flight suspensions,” said Andrew Charlton, managing director of Aviation Advocacy.
Image copyright GETTY IMAGESImage caption Port Talbot employs just under half of Tata’s 8,385 UK workforce
Tata Steel plans to cut as many as 3,000 jobs across its European business in another bid to come to terms with a “severe” international steel market.
The company wants to focus on higher-value products, it said, adding there would be no plant closures.
About two thirds of the job cuts will be office-based, it added.
The announcement comes after a merger with German rival Thyssenkrupp was blocked during the summer. Bosses had hoped the deal could reduce costs.
“Today we are highlighting important proposals towards building a financially strong and sustainable European business,” said Henrik Adam, chief executive of Tata Steel in Europe.
“We plan to change how we work together to enable better cooperation and faster decision-making. This will help us become self-sustaining and cash positive in the face of unprecedented severe market conditions, enabling us to lead the way towards a carbon-neutral future.”
The business employs about 20,000 people and is owned by India’s Tata.
Port Talbot steelworks employs just under half of Tata’s 8,385-strong workforce in the UK.
Wales’ economy minister Ken Skates said: “I am seeking an urgent conversation with Tata to establish what this means for workers in Wales and how we can support those affected by this announcement.”
It also said it would seek to “preserve thousands of jobs in a key foundation industry for the UK” but did not put a number on how many would be saved.
British Steel employs about 4,000 people in Scunthorpe and Teesside.
After nearly 10 years of planning, the country’s two shipbuilders will be reunited with a combined revenue of US$141.5 billion
China’s two shipbuilding giants have built hundreds of military vessels over the past few years as the country’s navy seeks to modernise rapidly. Photo: Xinhua
China on Friday announced the merger of the country’s two largest state-owned shipbuilding giants, a step Beijing has been preparing for nearly a decade to strengthen the competitiveness of its shipbuilding industry.
The intention to merge the Shanghai-based China State Shipbuilding Corp (CSSC) and the China Shipbuilding Industry Co (CSIC), based in Dalian, Northern Liaoning province, was announced in a statement on the website of the state-owned Assets Supervision and Administration Commission of the State Council, China’s cabinet.
The merger would enable China to establish a shipbuilding giant with a combined revenue up to 1 trillion yuan (US$141.5 billion), capable of building vessels ranging from warships, like aircraft carriers, to civilian ships such as container ships and oil tankers, said a source familiar with the merger plan.
“This merger has been in the making since Hu Wenming, a former party leader of the state-owned aviation industry, was assigned to CSSC as party secretary in 2010,” the source said, requesting anonymity because of the sensitivity of the issue.
“The merger plan was put on the drawing board at a time when the world shipping industry had entered a golden period in 2009, and the business of CSSC and CSIC was at its peak, but [China’s] analysis indicated a decline was on the horizon, as has actually happened in recent years.”
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CSIC and CSSC were part of the same group until 1999 when they were split into two separate entities. Since then, China has overtaken South Korea and Japan to become the world’s largest builder of merchant ships, a rise spurred by the boom in world trade and the country’s accession to the World Trade Organisation in 2001.
CSSC manages shipbuilding business in the east and south of China, while CSIC oversees activities in the northern and western parts of the country. Both are also primary contractors for PLA naval ships.
Commercial shipbuilding was the major source of revenue for both enterprises, given they were generally less technologically challenging and of lower cost to build, the source said.
“Developing and building warships for the PLA needs more manpower and more advanced technologies because naval ships, which are built for sea battles, take longer to build and require cutting-edge technologies, hence the higher costs,” the source said.
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CSSC and CSIC have built hundreds of military vessels over the past few years as the Chinese navy seeks to modernise rapidly. These have included aircraft carriers, Type 055 destroyers, Type 075 amphibious assault ships and Type 094A nuclear submarines.
But, the source said, the two giants’ naval warship building mission would be cut back next year, as Beijing expected greater financial pressure as a result of slower economic growth. The merger would allow the two companies to pool their resources and enhance their competitiveness, especially in the development of mega vessels.
But the source said the two giants’ naval warships building missions would be cut back beginning next year as Beijing foresees greater financial pressure as a result of slower economic growth. The merger will allow the two companies to pool their resources and enhance their competitiveness, especially in areas of mega vessels.
“The merger is also part of China’s long-term maritime energy development plan to meet President Xi Jinping’s sustainable and clean energy goal, because China needs more giant vessels to help ship oil and gas from other countries,” the source said.
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