Archive for ‘Economics’

07/05/2020

Gas leak at S.Korea-owned factory in India kills 11, hundreds hospitalised

CHENNAI (Reuters) – At least 11 people were killed in India in a gas leak at a South Korean-owned factory making polystyrene products that made hundreds of people sick and led to the evacuation of villagers living nearby, officials said.

The accident occurred some 14 km (9 miles) inland from the east coast city of Visakhapatnam, in Andhra Pradesh state, at a plant operated by LG Polymers, a unit of South Korea’s biggest petrochemical maker, LG Chem Ltd.

Srijana Gummalla, commissioner of the Greater Visakhapatnam Municipal Corporation, said gas from styrene, a principal raw materials at the plant, leaked during the early hours of the morning, when families in the surrounding villages were asleep.

Yashwanth Saikumar Ambati, 23, who lives about 300 metres away from the plant, said he woke up around 4.30 a.m. because of a strong smell.

“I went back to sleep and I woke up around 6 because the smell got stronger. My eyes were itchy, and I was feeling drowsy, light-headed and slightly breathless,” he told Reuters, adding that neighbours also complained of eye irritation and stomach aches.

In a statement issued from Seoul, LG Chem said that the gas emitted in the leak can cause nausea and dizziness when inhaled, adding that it was seeking to ensure casualties received treatment quickly.

Video from Reuters partner ANI shot later on Thursday showed emergency workers in the area rushing to help victims, some of whom appeared to be listless and disoriented.

A number of victims lay unconscious on the streetside, as volunteers fanned them and others carried them to ambulances.

A spokesman for LG Chem in Seoul said the leak was discovered by a night shift maintenance worker and has been brought under control.

According to both the company spokesman and Gummalla, the plant was being reopened after India relaxed a nationwide lockdown that had been imposed on March 25 to contain the spread of the new coronavirus.

Thursday’s incident brought back bad memories of a gas leak at an factory of U.S. chemical firm Union Carbide that killed thousands in the central Indian city of Bhopal in 1984, but thankfully it was on a far smaller scale.

“I pray for everyone’s safety and well-being in Visakhapatnam,” Prime Minister Narendra Modi said in a tweet.

S.N. Pradhan, director general of the National Disaster Response Force, said that at least 11 had died after around 1,000 people living near the plant were exposed to the gas.

FALLING, RUNNING AWAY

B.V. Rani, a revenue official in the district, said she received a call at around 4 a.m. from a police officer near the facility, who sounded panicky. “He asked me to come to the spot immediately,” Rani told Reuters.

When Rani went there, she saw that people had collapsed unconscious in the village adjoining the 60-acre site of the plant.

“I personally helped more than 15 people get to an ambulance who had tried to run away from the village but dropped down within a few metres,” she said.

At least one child was among the dead, a policeman at the site told ANI, whose video showed at least two other children being lifted into an ambulance.

Between 300-400 people were hospitalised, Swarupa Rani, an Assistant Commissioner of Police in Visakhapatnam told Reuters. Another 1,500 people had been evacuated, mostly from a neighbouring village.

Areas within approximately 3-kilometre (nearly 2-mile) radius of the plant were evacuated, he said, with emergency services going from door-to-door to find anyone left behind.

TOP PETROCHEMICAL MAKER

Andhra Pradesh Chief Minister Jagan Mohan Reddy said in a televised address that the gas leak occurred because raw material was stored for a long period of time.

The state government will give 10 million rupees ($131,900) compensation to the families to those who died, and it will also form a panel to investigate the cause of the accident, said P.V. Ramesh, a senior aide to the chief minister.

“Obviously something has gone wrong,” Ramesh told Reuters. “Nobody will be spared.”

LG Chem’s share priced closed nearly 2% weaker on Thursday, in a Seoul market that was broadly flat.

South Korea’s top petrochemical maker by capacity, LG Chem acquired the plant in 1997 and established LG Polymers India Private Limited (LGPI), according to a company website.

The LG Polymers plant makes polystyrene products which are used in manufacturing electric fan blades, cups and cutlery and containers for cosmetic products such as make up.

“LG Polymers is a multi national, reputed company, and it is sad that the incident has happened in their plant,” Chief Minister Reddy said in a televised media address.

($1 = 75.8140 Indian rupees)

Source: Reuters

05/05/2020

Countdown begins as Europe and Japan prepare spacecraft for 7-year journey to Mercury

Joint mission will send two unmanned probes into orbit around the closest planet to the sun

The BepiColombo standing in position at a test facility in Spijkenisse. Its mission to Mercury is scheduled for launch on an Ariane 5 from Europe's Spaceport in Kourou, French Guiana on October 20. Photo: AFP Photo
The BepiColombo standing in position at a test facility in Spijkenisse. Its mission to Mercury is scheduled for launch on an Ariane 5 from Europe’s Spaceport in Kourou, French Guiana on October 20. Photo: AFP Photo

Final preparations were underway on Friday for the launch of a joint mission by European and Japanese space agencies to send twin probes to Mercury, the closest planet to the sun.

An Ariane 5 rocket is scheduled to lift the unmanned spacecraft into orbit from French Guiana shortly before midnight, the start of a seven-year journey to the solar system’s innermost planet.

Mercury is seen in silhouette, lower third of image, as it transits across the face of the sun. Photo: AFP PHOTO / NASA / BILL INGALLS
Mercury is seen in silhouette, lower third of image, as it transits across the face of the sun. Photo: AFP PHOTO / NASA / BILL INGALLS
The European Space Agency says the 1.3 billion (US$1.5 billion) mission is one of the most challenging in its history. Mercury’s extreme temperatures, the intense gravity pull of the sun and blistering solar radiation make for hellish conditions.
An Ariane-5 rocket is set for launch at the Guiana Space Centre in Kourou in French Guiana. Photo: Kyodo
An Ariane-5 rocket is set for launch at the Guiana Space Centre in Kourou in French Guiana. Photo: Kyodo
Newly developed electrical ion thrusters will help nudge the spacecraft, which was named after Italian scientist Giuseppe “Bepi” Colombo, into the right orbit.
Aborted launch astronauts may head to International Space Station this year: Nasa head says
12 Oct 2018

When it arrives, BepiColombo will release two probes – Bepi and Mio – that will independently investigate the surface and magnetic field of Mercury. The probes are designed to cope with temperatures varying from 430 degrees Celsius (806F) on the side facing the sun, and -180 degrees Celsius (-292F) in Mercury’s shadow.

An Ariane-5 rocket is transported to its launch site at the Guiana Space Centre in Kourou. Photo: Kyodo
An Ariane-5 rocket is transported to its launch site at the Guiana Space Centre in Kourou. Photo: Kyodo
Scientists hope to build on the insights gained by Nasa’s Messenger probe, which ended its mission in 2015 after a four-year orbit of Mercury. The only other spacecraft to visit Mercury was Nasa’s Mariner 10 that flew past the planet in the mid-1970s.
Japanese space robots have landed on asteroid to carry out world-first survey
22 Sep 2018

Mercury, which is only slightly larger than Earth’s moon, has a massive iron core about which little is known. Researchers are also hoping to learn more about the formation of the solar system from the data gathered by the BepiColombo mission.

It is the second recent cooperation between the Europeans and the Japan Aerospace Exploration Agency. JAXA’s Hayabusa2 probe dropped a German-French rover on the asteroid Ryugu earlier this month.
Source: SCMP
05/05/2020

China launches manned spacecraft prototype with new Long March 5B rocket

  • Modified version of country’s most powerful rocket carries next-generation capsule designed to take astronauts to its planned space station
  • It will be able to launch and land with three crew members and up to 500kg of cargo, according to state media
China launched a new version of its heavy-lift Long March 5 rocket on Tuesday. Photo: Reuters
China launched a new version of its heavy-lift Long March 5 rocket on Tuesday. Photo: Reuters

China successfully launched a prototype of its next-generation manned spacecraft – without astronauts – along with a new version of its heavy-lift Long March 5 rocket on Tuesday, its space agency said.

The Long March 5B rocket was launched into low-Earth orbit from the Wenchang Satellite Launch Centre on Hainan Island in the country’s south.

The launch marks a significant step forward for China’s two big space exploration ambitions – building a space station and a mission to Mars.

A modified version of China’s most powerful rocket, the Long March 5B is 53.7 metres (176 feet) tall. It will carry the next-generation crew capsule prototype designed to replace the Shenzhou spacecraft, to transport astronauts to its planned space station in low-Earth orbit.

China aims to launch the core module of that space station designed for three crew members, the Tianhe, in 2021. Beijing has been planning to build its own space station for decades as an alternative to the International Space Station, from which China has been excluded by the United States over security concerns.
China’s space station project has been delayed by problems with its heavy-lift rockets. Photo: Xinhua
China’s space station project has been delayed by problems with its heavy-lift rockets. Photo: Xinhua
The prototype capsule has a different configuration to Shenzhou’s and it will be able to launch and land with three astronauts on board as well as up to 500kg of cargo, according to state news agency Xinhua. That will mean it can be used to transport research specimens and hardware from the space station back to Earth.

While the Shenzhou can ferry three astronauts, the new capsule design will be able to accommodate up to six crew members and, unlike the Shenzhou, it will be capable of carrying them to the moon, according to Chinese media reports.

Its systems, performance in orbit and parachute deployment are among the areas that will be put to the test during the launch.

Why China’s next Long March 5 rocket mission will be about restoring national pride

14 Dec 2019

The long-anticipated space station project has been delayed by problems in the development of heavy-lift rockets to carry the modules. In 2017, an oxygen supply problem caused the failure of the second Long March 5 launch, and it plunged into the Pacific Ocean shortly after take-off. But in December it successfully carried a Shijian-20 satellite into orbit, while the liquid oxygen-liquid hydrogen engines used in both the Long March 5 and 5B rockets passed testing in January.

China’s other space ambitions include a Mars probe, and landing astronauts on the moon within the next decade. For the Mars mission, the unmanned orbiter and rover Tianwen-1 will be launched by the Long March 5 and it is expected to take up to seven months for the probe to reach the red planet. China would be the third country to do so – after the United States and the Soviet Union.

Zhang Kejian, head of the China National Space Administration, said China was on track to launch the mission this year, with July the likely launch date.

Source: SCMP

04/05/2020

Coronavirus: billionaire Warren Buffett’s prediction for America after Berkshire Hathaway’s US$50 billion loss

  • Buffett’s Berkshire posted a record quarterly net loss of nearly US$50 billion
  • Company sells entire stakes in US airlines, Buffett says ‘world has changed’
Warren Buffett speaks during the virtual Berkshire Hathaway annual shareholders meeting. Photo: Bloomberg
Warren Buffett speaks during the virtual Berkshire Hathaway annual shareholders meeting. Photo: Bloomberg

Billionaire investor Warren Buffett said Saturday he’s confident the US economy will bounce back from its pummelling by the coronavirus pandemic because “American magic has always prevailed”.

The 89-year-old made the sanguine prediction about the world’s largest economy as his holding company Berkshire Hathaway reported first-quarter net losses of nearly US$50 billion.

Buffett also announced Saturday that his company had sold all its stakes in four major US airlines last month, as the pandemic clobbered the travel industry.

“It turns out I was wrong,” he said of his acquisitions of 10 per cent stakes in American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.

Berkshire Hathaway had paid US$7 billion to US$8 billion, and “we did not take out anything like that,” he said.

Between the purchases that took place over months, and the sale, “the airlines business I think changed in a very major way” and could no longer meet Berkshire criteria for profitability, he said.

Buffett’s announcement may further hurt airlines already pushed to the brink by coronavirus lockdown measures, now looking to the US government for US$25 billion in relief funds.

Berkshire Hathaway, based in Omaha, Nebraska, called its first-quarter setback “temporary” but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits.

Warren Buffett (left) and vice-chairman Charlie Munger at the annual Berkshire shareholder shopping day in Omaha, Nebraska in 2019. Photo: Reuters
Warren Buffett (left) and vice-chairman Charlie Munger at the annual Berkshire shareholder shopping day in Omaha, Nebraska in 2019. Photo: Reuters
“We’ve faced great problems in the past, haven’t faced this exact problem – in fact we haven’t really faced anything that quite resembles this problem,” Buffett said in a lengthy speech on the country’s economic history.

“But we faced tougher problems, and the American miracles, American magic has always prevailed and it will do so again.”

“We are now a better country, as well as an incredibly more wealthy country, than we were in 1789 … We got a long ways to go but we moved in the right direction,” he said, referencing the abolition of slavery and women’s suffrage.

Warren Buffett has traded his old flip phone for Apple’s iPhone

25 Feb 2020

“Never bet against America.”

Buffett is considered one of the savviest investors anywhere. His fortune of US$72 billion is the fourth-largest in the world, according to Forbes, and in normal years, the company’s annual gathering in Omaha is a high-point of the calendar for investors, a “Woodstock for capitalists”.

But the devastating economic impact of the pandemic has hit hard at Berkshire Hathaway’s wide range of investments, and the need for social distancing forced it to hold the annual meeting online.

Buffett addressed his shareholders in a live-stream flanked only by Gregory Abel, who is in charge of Berkshire’s non-insurance operations.

His business partner for six decades, 96-year-old Charlie Munger, did not appear.

China’s first-quarter GDP shrinks for the first time since 1976 as coronavirus cripples economy
Buffett, in a statement, played down his company’s bleak-looking net figure. He said a better measure of the company’s performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations.
By that measure, Berkshire Hathaway saw growth to US$5.9 billion from US$5.55 billion a year earlier.
The brutal drop in the net – to a loss of US$49.75 billion from a profit last year of US$21.7 billion – resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology.
Chinese cryptocurrency billionaire finally sits down to eat with Warren Buffett
7 Feb 2020

The annual meeting often has an almost carnival atmosphere, as thousands of fans and investors flock to Nebraska to hear from the celebrated “Oracle of Omaha”. Buffett, famous for his relatively modest lifestyle, turns 90 on August 30.

In documents filed Saturday, Berkshire noted that until mid-March many of its companies were posting “comparative revenue and earnings increases” over the same 2019 period.

Many of its companies – including in rail transport, energy production and some manufacturing and service businesses – are deemed essential and are able to continue working amid the far-reaching confinement orders.

But their turnover slowed considerably in April, the company statement said.

Moves taken by those companies such as employee furloughs, salary cuts and reductions, and capital spending reductions are “necessary actions” and “temporary,” it said.

Source: SCMP

04/05/2020

China’s young spenders say #ditchyourstuff as economy sputters

BEIJING (Reuters) – Tang Yue, a 27-year-old teacher from the city of Guilin in southwest China, steam-presses a blue dress and takes dozens of photographs before picking one to clinch her 200th online sale.

For a growing number of Chinese like Tang, hit by job losses, furloughs and salary cuts, the consumer economy has begun to spin in reverse. They are no longer buying – they are selling.

Instead of emerging from the coronavirus epidemic and returning to the shopping habits that helped drive the world’s second-largest economy, many young people are offloading possessions and embracing a new-found ethic for hard times: less is more.

With Tang’s monthly salary of about 7,000 yuan ($988), the self-described shopaholic said she has bought everything from Chanel lipsticks to Apple’s (AAPL.O) latest iPad in the past three years.

But the adrenaline rush that comes with binge-shopping is gone, said Tang, whose wages have been slashed with the suspension of all the classes on tourism management she usually teaches.

“The coronavirus outbreak was a wake-up call,” she said. “When I saw the collapse of so many industries, I realised I had no financial buffer should something unfortunate happen to me.”

There is no guarantee that the nascent minimalist trend will continue once the coronavirus crisis is fully over, but if it does, it could seriously damage China’s consumer sector and hurt thousands of businesses from big retailers to street-corner restaurants, gyms and beauty salons.

To be sure, there are signs that pent-up demand will drive a rush of spending as authorities reopen malls, leisure venues and tourist spots. In South Korea, the first major economy outside of China to be hit by the virus, people thronged malls this weekend to go “revenge shopping” to make up for time lost in lockdown.,

There are some signs that a similar trend will take hold in China, where some upscale malls are starting to get busy, although luxury firm Kering SA (PRTP.PA) – which owns Gucci, Balenciaga and other fashion brands – has said it is hard to predict how or when sales in China might come back.

A recent McKinsey & Co survey showed that between 20% and 30% of respondents in China said they would continue to be cautious, either consuming slightly less or, in a few cases, a lot less.

“The lockdown provided consumers with a lot of time and reasons to reflect and consider what is important to them,” said Mark Tanner, managing director at Shanghai-based research and marketing consultancy China Skinny.

“With much more of their days spent in their homes, consumers also have more time and reasons to sort through things they don’t feel they need – so they’re not living around clutter that is common in many apartments.”

#DITCHYOURSTUFF

Tang made a spreadsheet to keep track of her nearly 200 cosmetic products and hundreds of pieces of clothing. She then marked a few essentials in red that she wanted to keep. In the past two months, she has sold items worth nearly 5,000 yuan on second-hand marketplaces online.

Bargain-hunting online has become a new habit for some Chinese as the stigma that once hung over second-hand goods has begun to fade.

Idle Fish, China’s biggest online site for used goods, hit a record daily transaction volume in March, its parent company Alibaba (BABA.N) told Reuters.

Government researchers predict that transactions for used goods in China may top 1 trillion yuan ($141 billion) this year.

Posts with the hashtag #ditchyourstuff have trended on Chinese social media in recent weeks, garnering more than 140 million views.

Jiang Zhuoyue, 31, who works as an accountant at a traditional Chinese medicine company in Beijing – one of the few industries that may benefit from the health crisis – has also decided to turn to a simpler life.

“I used to shop too much and could be easily lured by discounts,” said Jiang. “One time Sephora offered 20% off for all goods, I then bought a lot of cosmetics because I feel I’m losing money if I don’t.”

Jiang, the mother of a 9-month-old baby, said she recently sold nearly 50 pieces of used clothing as the lockdown gave her the opportunity to clear things out. “It also offered me a chance to rethink what’s essential to me, and the importance of doing financial planning,” she said.

Eleven Li, a 23-year-old flight attendant, said she used to spend her money on all manner of celebrity-endorsed facial masks, snacks, concert tickets and social media activity, but now has no way to fund her spending.

“I just found a new job late last year, then COVID-19 came along, and I haven’t been able to fly once since I joined, and I’ve gotten no salary at all,” said Li, who said she was trying to sell her Kindle.

Some are even selling their pets, as they consider leaving big cities like Beijing and Shanghai where the high cost of living is finally catching up with them.

NO RETURN TO OLD WAYS?

As the coronavirus comes under control in China, the government is gradually releasing cities from lockdown, easing transport restrictions and encouraging consumers to venture back into malls and restaurants by giving out billions-worth of cash vouchers, worth between 10 yuan and 100 yuan.

But many people say they are still worried about job security and potential wage cuts because of the struggling economy. Nationwide retail sales have plunged every month so far this year.

Xu Chi, a Shanghai-based senior strategic analyst with Zhongtai Securities, said some Chinese consumers may prove the ‘21 Day Habit Theory,’ a popular scientific proposition that it only takes that long to establish new habits.

“We believe people’s spending patterns follow the well-known theory, which means most people in China, having been cooped-up at home for more than a month and not having binge-shopped, may break the habit and not return to their old ways,” Xu said.

Jiang said she was determined not to return to her free-spending ways and planned to cook more at home.

“I’ll turn to cheaper goods for some luxury brands,” she said. “I’ll choose Huawei’s smartphone, because (Apple’s) iPhone has too much brand premium.”

Tang, who has recently used 100 yuan of shopping coupons to stock up on food, is going to hold the purse strings even tighter.

“I’ve set my monthly budget at 1,000 yuan,” she said. “Including one – and just one – bottle of bubble tea.”

Source: Reuters

03/05/2020

China’s military budget will still rise despite coronavirus, experts predict

  • Defence spending could show the effect of economic headwinds but is still expected to increase
  • PLA’s modernisation and strategic priorities demand spending is maintained even after GDP’s first contraction since records began, observers say
China has made modernising its military and expanding its weaponry a priority. Photo: Xinhua
China has made modernising its military and expanding its weaponry a priority. Photo: Xinhua
China’s upcoming defence budget will be only slightly hit by the economic downturn that followed the coronavirus outbreak, and a modest increase is still expected as it continues to develop its military capability, analysts said.
The government’s military budget is expected to be revealed, as is the norm, at this year’s session of the National People’s Congress (NPC), China’s legislative body. Delayed by over two months because of the pandemic, it will finally be convened on May 22.
Last year the defence expenditure announced at the NPC session was 

China has said its military expenditure has always been kept below 2 per cent of its GDP over the past 30 years, although its official figures have long been described by Western observers as opaque, with significant omissions of important items.

The South China Sea dispute explained
In a report earlier this week, the Stockholm International Peace Research Institute estimated that China’s actual military spending in 2019 was US$261 billion, the world’s second highest, after the United States’ US$732 billion.

John Lee, adjunct professor at the University of Sydney and senior fellow at the Hudson Institute in Washington, estimated that this year the Chinese defence budget would remain roughly the same or increase modestly, in line with growth levels of recent years.

“In the current environment, Beijing is keen to emphasise that China has recovered substantially from Covid-19 and that its power trajectory is unaffected by recent events,” Lee said. “At the same time, it would be aware of the anger towards the Communist Party for allowing the virus to become a pandemic.

“Regardless of what the reality might be, I would be surprised if there were a dramatic increase or a significant cut.”

First made-in-China aircraft carrier, the Shandong, enters service
China’s GDP suffered a 6.8 per cent decline in the first quarter, the first contraction since quarterly records began in 1992, after an extensive shutdown while it contained its coronavirus outbreak. However, the official increases in the military budget have since 2011 always exceeded overall GDP growth.

The Chinese government may focus more on job creation, social welfare and poverty alleviation, but not at the expense of military investment, according to Collin Koh, research fellow from the S Rajaratnam School of International Studies at Singapore’s Nanyang Technological University in Singapore.

“I tend to think it will be more or less the same,” Koh said. “To reduce [the budget] may send the wrong signal to would-be adversaries, both domestic and external: that Beijing has lost the will to keep up its military modernisation to assert core national interests.”

PLA flexes military muscle near Taiwan ‘in show of Covid-19 control’

15 Apr 2020

The People’s Liberation Army (PLA) began a massive – and costly – reform in 2015, with a personnel reshuffle, change in structure, upgraded equipment and enhanced training to better resemble battle scenarios. That was supposed to be complete this year.

Given the deteriorating relationship with the United States and rising tensions in the Taiwan Strait and South China Sea, the PLA faces challenges requiring a steady increase in investment, according to Hong Kong-based military commentator Song Zhongping.

Taiwan shows off its military power after presidential election
Macau-based military expert Antony Wong Dong predicted there would still be about 6-7 per cent growth in the budget “no matter what”.
“The PLA played an important role in the fight against the contagion, so a decrease in spending would not be accepted,” Wong said.
That role included the deployment of more than 4,000 military medics to help treat Covid-19 patients, and helping to transport medical supplies.
Wong said it would be a crucial year for the PLA in completing its preparation for potential military action against Taiwan, which would be so strategically important that “[President] Xi Jinping himself would never allow it to be affected by a shortage of funding”.
China’s military draws on 6G dream to modernise its fighting forces
18 Apr 2020

But a slight increase in budget would be sufficient to meet defence needs and maintain a deterrence against potential threats, including preventing self-ruled Taiwan taking the opportunity to declare independence, naval expert Li Jie said.

Beijing views Taiwan as a breakaway province to be reunified with the mainland, by force if necessary. Its relationship with Taipei has been strained, and dialogue halted, since Tsai Ing-wen, of the pro-independence Democratic Progressive Party, was elected the island’s president in 2016. Tsai was re-elected for a second term in January.

Li estimated that the budget would probably be kept at the same level or show a “slight” increase from last year.

“It would feed the ‘China threat’ theory and raise international concerns if the Chinese government expands military spending too much,” he said.

Source: SCMP

03/05/2020

GM and SAIC’s China sales rebound in April as market recovers

BEIJING (Reuters) – General Motors’ sales in China saw double-digit year-on-year growth in April, its two local ventures said on Sunday, as the world’s biggest auto market recovers from the coronavirus.

GM’s (GM.N) joint venture with SAIC Motor Corp (600104.SS), which manufactures Buick, Chevrolet and Cadillac vehicles, said its sales in China grew 13.6% compared to a year earlier. It said it had sold 111,155 units in April, including exported cars.

Meanwhile, SGMW, a separate GM venture with SAIC and Guangxi Automobile Group which produces no-frills minivans and has started to make higher-end cars, said its sales jumped 13.5% to over 127,000 units last month.

U.S. automaker GM, which is China’s second biggest foreign car company after Volkswagen (VOWG_p.DE), said its sales in China fell 43.3% in the first three months of 2020 compared with the same period last year.

To attract customers, GM and SAIC have hired social media celebrities to promote its new models and are offering free medical masks to customers.

China’s biggest automaker SAIC, which sold more than 6 million cars last year, said its sales rose 0.5% compared to the same period last year. As well as the GM venture, it also builds its own brand cars and operates a venture with Volkswagen.

Source: Reuters

03/05/2020

Shanghai receives over 1 mln visitors in first two days of May Day holiday

SHANGHAI, May 2 (Xinhua) — Shanghai’s 130 main tourist attractions have received over 1 million visitors in the first two days of the five-day May Day holiday.

The scenic sites received 456,000 visitors on Friday and 633,000 more on Saturday, marking a growing travel and leisure demand, according to the Shanghai Municipal Administration of Culture and Tourism.

The city requires reservations for tours of all tourist attractions to prevent crowding while tourist sites should not exceed 30 percent of their daily or real-time visitor capacity.

Tourists are also required to wear face masks, show their health QR codes and have their body temperatures taken for their safety.

“I feel safe and confident with the new reservation measures,” said Li Zhi, who has booked tours to the Zhujiajiao ancient town and Shanghai Oriental Land.

Under the reservation system, tourist sites are also better prepared to prevent crowding and provide better tour experiences to customers, according to Huang Ying with Shanghai Oriental Land.

Source: Xinhua

03/05/2020

Farmers work in terraced fields in Gongxian, Sichuan

CHINA-SICHUAN-GONGXIAN-TERRACED FIELD-FARMING (CN)Aerial photo taken on May 2, 2020 shows villagers planting rice seedlings in a terraced field in Gongxian County, southwest China’s Sichuan Province. (Xinhua/Jiang Hongjing)

Source: Xinhua

02/05/2020

China plans to send Uygur Muslims from Xinjiang re-education camps to work in other parts of country

  • Inmates who have undergone compulsory re-education programme to be moved to other parts of China under job placement scheme delayed by Covid-19 outbreak
  • Critics have said the camps are a move to eradicate cultural and religious identity but Beijing has defended them as way of boosting job opportunities and combating Islamic radicalisation
Illustration by Perry Tse
Illustration by Perry Tse

The Chinese government has resumed a job placement scheme for tens of thousands of Uygur Muslims who have completed compulsory programmes at the “re-education” camps in the far-western region of Xinjiang, sources said.

The plan, which includes a quota for the numbers provinces must take, was finalised last year but disrupted by the outbreak of Covid-19.

The delay threatens to undermine the Chinese government’s efforts to justify its use of internment camps in Xinjiang.

Critics have said these camps were part of the measures designed to eradicate the ethnic and cultural identity of Uygurs and other Muslim minorities and that participants had no choice but to undertake the re-education programme.

Beijing has repeatedly dismissed these criticisms and said the camps are to give Uygurs the training they need to find better jobs and stay away from the influence of radical fundamentalism.
First Xinjiang, now Tibet passes rules to promote ‘ethnic unity’
17 Feb 2020

Now with the disease under control, the Chinese government has resumed the job placement deal for other provinces to absorb Xinjiang labourers, sources said.

Despite the devastating impact of the disease on its economy and job markets, the Chinese authorities are determined to go ahead with the plan, which they believe would

“demonstrate the success of Xinjiang’s re-education centres policy”

, a source said.

“Excellent graduates were to be taken on as labourers by various inland governments, in particular, 19 provinces and municipalities,” said the source. It is unclear what constitutes “excellent graduates”.

Some sources earlier said that the programme may be scaled back in light of the new economic reality and uncertainties.

But a Beijing-based source said the overall targets would remain unchanged.

“The unemployment problem in Xinjiang must be resolved at all costs, despite the outbreak,” the source said.

The South China Morning Post has learned that at least 19 provinces and cities have been given quotas to hire Muslim minorities, mostly Uygurs, who have “graduated” from re-education camps.

As early as February, when the daily number of infections started to come down outside Hubei province, China already begun to send Uygur workers to their new jobs.

A photo taken in February showed thousands of young Uygurs, all wearing face masks and with huge red silk flowers pinned to their chests, being dispatched to work in factories outside their hometowns.

By the end of February, Xinjiang alone has created jobs for more than 60,000 Uygur graduates from the camps. A few thousand were also sent to work in other provinces.

Many have been employed in factories making toys and clothes.

Xinjiang’s new rules against domestic violence expand China’s ‘extremism’ front to the home

7 Apr 2020

Sources told the Post that the southern city of Shenzhen – China’s hi-tech manufacturing centre – was given a target last year to eventually resettle 50,000 Uygurs. The city is allowed to do this in several batches, with 15,000 to 20,000 planned for the first stage.

Shaoguan, a less developed Guangdong city where a deadly toy factory brawl between Uygurs and Han Chinese broke out in 2009, was also asked to take on another 30,000 to 50,000 Uygur workers.
In Fujian province, a government source also said they had been told to hire “tens of thousands of Xinjiang workers”.
“I heard the first batch of several thousands would arrive soon. We have already received official directives asking us to handle their settlement with care,” said the source.

He said the preparation work includes providing halal food to the workers as well as putting in place stronger security measures to “minimise the risks of mass incidents”. It is not known whether they will be given access to prayer rooms.

There are no official statistics of how many Uygurs will be resettled to other provinces and the matter is rarely reported by the mainland media.

But in March, Anhui Daily, the province’s official newspaper, reported that it had received 1,560 “organised labourers from Xinjiang”.

The Uygur workers on average could earn between 1,200 yuan (US$170) to 4,000 yuan (US$565) a month, with accommodation and meals provided by the local authorities, according to Chinese media reports.

However, they are not allowed to leave their dormitories without permission.

The UN has estimated that up to a million Muslims were being held in the camps. Photo: AP
The UN has estimated that up to a million Muslims were being held in the camps. Photo: AP
Xinjiang’s per capita disposable income in 2018 was 1,791 yuan a month, according to state news agency Xinhua. But the salary level outside the region’s biggest cities such as Urumqi may be much lower.
The official unemployment rate for the region is between 3 and 4 per cent, but the statistics do not include those living in remote rural areas.
Mindful of the potential risks of the resettlement, Beijing has taken painstaking efforts to carefully manage everything – from recruitment to setting contract terms to managing the workers’ day-to-day lives.
Local officials will go to each Uygur workers’ home to personally take them to prearranged flights and trains. On arrival, they will be immediately picked up and sent to their assigned factories.
US bill would bar goods from Xinjiang, classifying them the product of forced labour by Uygurs
12 Mar 2020

Such arrangements are not unique to Uygurs and local governments have made similar arrangements for ethnic Han workers in other parts of China.

After screening them for Covid-19, local governments have arranged for workers to be sent to their workplaces in batches. They are checked again on arrival, before being sent to work.

China is accelerating such placement deals on a massive scale to offset the impact of the economic slowdown after the outbreak.

Sources told the South China Morning Post that the job placement deal was first finalised by governments in Xinjiang and other provinces last year.

The aim is to guarantee jobs for Uygur Muslim who have “completed vocational training” at the re-education camps and meet poverty alleviation deals in the region, one of the poorest parts of China.

The training they receive in the camps includes vocational training for various job types such as factory work, mechanical maintenance and hotel room servicing. They also have to study Mandarin, Chinese law, core party values and patriotic education.

Xinjiang’s massive internment camps have drawn widespread international condemnation.

The United Nations has estimated that up to 1 million Uygur and other Muslim minority citizens are being arbitrarily detained in the camps, which Beijing insists are necessary to combat terrorism and Islamic radicalisation.

Late last year, Xinjiang’s officials announced that all the inmates of these so-called vocational training centres had “graduated” and taken up employment.

Before this labour placement scheme was introduced, it was extremely difficult for Uygurs to find jobs or live and work in inland regions.

The 2009 brawl at the factory in Shaoguan was one of the factors that triggered a deadly riot in Xinjiang’s capital Urumqi, that left 192 people dead and more than 1,000 wounded.

Muslim ethnic minorities, Uygurs in particular, have been subjected to blatant discrimination in China and the situation worsened after the 2009 clashes.

Earlier this month, the Australian Strategic Policy Institute released a report saying more than 80,000 Uygurs had been moved from Xinjiang to work in factories in nine Chinese regions and provinces.

It identified a total of 27 factories that supplied 83 brands, including household names such as Google, Apple, Microsoft, Mitsubishi, Siemens, Sony, Huawei, Samsung, Nike, Abercrombie and Fitch, Uniqlo, Adidas and Lacoste.

‘Psychological torture’: Uygurs abroad face mental health crisis over plight of relatives who remain in Xinjiang

11 Mar 2020

The security think tank concluded that the Chinese government had transferred Uygur workers “under conditions that strongly suggest forced labour” between 2017 and 2019, sometimes drawing labourers directly from re-education camps.

The report also said the work programme represents a “new phase in China’s social re-engineering campaign targeting minority citizens”.

Workers were typically sent to live in segregated dormitories, underwent organised Mandarin lessons and ideological training outside working hours and were subject to constant surveillance, the researcher found.

They were also forbidden from taking part in religious observances, according to the report that is based on open-source documents, satellite pictures, academic research and on-the-ground reporting.

Chinese foreign ministry spokesman Zhao Lijian criticised the report saying it had “no factual basis”.

Source: SCMP

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