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.
BEIJING/SHANGHAI (Reuters) – China’s biggest listed banks posted higher profits in the first quarter despite the wider impact of the coronavirus pandemic on the economy, though margins shrank.
The world’s largest commercial lender Industrial and Commercial Bank of China Ltd (ICBC) (601398.SS)(1398.HK) on Tuesday reported a 3.04% rise in first quarter net profit compared to a year earlier, while Bank of Communications Co Ltd (BoCom) (601328.SS)(3328.HK) reported a 1.8% rise.
Meanwhile at Agricultural Bank of China Ltd (AgBank) (1288.HK)(601288.SS) and China Construction Bank Ltd (CCB) (601939.SS)(0939.HK), first quarter net profit rose 4.79% and 5% respectively from the same period last year.
Following suit, Bank of China Ltd (BOC) (601988.SS) (3988.HK) posted on Wednesday a 3.17% rise in first-quarter net profit.
The growth came despite China’s economy posting the first quarterly contraction since at least 1992 due to the coronavirus pandemic. The government restricted people from travelling and going back to work to contain the spread of the virus, reducing revenue for companies and income for residents.
China’s largest banks are historically more resilient than their smaller kin, as they lend more to state-backed enterprises and have larger capital reserves.
However, despite this firmer base, net interest margins shrank at four of the five lenders, as loan prime rate reform and looser monetary policy weighed, said analysts.
AgBank did not report its net interest margin, the difference between what banks pay on deposits and earn on loans.
SOURED DEBT
ICBC, AgBank and CCB bucked the trend of the wider banking sector by posting steady non-performing loan (NPL) ratios.
The banking sector’s NPL ratio climbed in the first quarter to 2.04%, the banking and insurance regulator said, the highest level since the global financial crisis.
The rise came despite Chinese regulators moving to give banks leeway, allowing them to postpone some loan repayments until the end of June, as credit card and mortgage defaults surged.
About one-third of Chinese bank loans are to sectors including transport and retail that are significantly stressed by the pandemic, according to S&P Global.
“You can see generally from banks’ results that some lenders have reported falling asset quality, the NPL ratios have risen quite a lot,” said Richard Cao, an analyst at Guotai Junan International on Monday.
The largest banks are best placed to absorb such losses with a better ability to get financing and withstand a substantial volume of bad loans, S&P said in a research note in April.
Researchers conclude that the virus was circulating undetected in France in February
Findings highlight the difficulties governments face in tracing the source of coronavirus outbreaks
Researchers in France have carried out genetic analysis and found that the dominant types of the viral strains in the country did not come from China or Italy. Photo: AP
The coronavirus outbreak in France was not caused by cases imported from China, but from a locally circulating strain of unknown origin, according to a new study by French scientists at the Institut Pasteur in Paris.
Genetic analysis showed that the dominant types of the viral strains in France belonged to a clade – or group with a common ancestor – that did not come from China or Italy, the earliest hotspot in Europe.
“The French outbreak has been mainly seeded by one or several variants of this clade … we can infer that the virus was silently circulating in France in February,” said researchers led by Dr Sylvie van der Werf and Etienne Simon-Loriere in a non-peer reviewed paper released on bioRxiv.org last week.
The Covid-19 pandemic has infected more than 128,000 people in France and caused more than 23,000 deaths.
France detected the virus in late January, before any other country in Europe. A few patients with a travel history that included China’s Hubei province were sampled on January 24 and tested positive.
The Covid-19 pandemic has infected more than 128,000 people in France and caused more than 23,000 deaths. Photo: AFP
The French government took quick and decisive measures to trace contacts of the infected people and shut down the chance of further infection.
However, these strains were not found in patients tested after the initial imported cases, suggesting “the quarantine imposed on the initial Covid-19 cases in France appears to have prevented local transmission”, the researchers said.
The Pasteur institute collected samples from more than 90 other patients across France and found the strains all came from one genetic line. Strains following this unique path of evolution had so far only been detected in Europe and the Americas.
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The earliest sample in the French clade was collected on February 19 from a patient who had no history of travel and no known contact with returned travellers.
Several patients had recently travelled to other European countries, the United Arab Emirates, Madagascar and Egypt but there was no direct evidence that they contracted the disease in these destinations.
To the researchers’ surprise, some of the later strains collected were genetically older – or closer to the ancestral root – than the first sample in this clade.
Spanish official cries reading names of health workers killed by coronavirus
A possible explanation, according to the authors, was that local transmission had been occurring in France for some time without being detected by health authorities.
The French government may have missed detecting the transmission. According to the researchers, a large proportion of those patients might have had mild symptoms or none at all.
The researchers also found that three sequences later sampled in Algeria were closely related to those in France, suggesting that travellers from France might have introduced the virus to the African country and caused an outbreak.
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Benjamin Neuman, professor and chair of biological sciences with the Texas A&M University-Texarkana, said the French strains might have come from Belgium, where some sequences most closely related to the original strain from China were clustered.
“Since the earliest European strains of [the coronavirus] Sars-CoV-2 seem to be associated with Belgium, the idea that the virus spread from Belgium to both Italy and France at around the same time seems plausible, as this paper contends,” he said.
France is the latest in a growing number of countries and areas where no direct link between China and local outbreaks could be established.
The dominant strains in Russia and Australia, for instance, came from Europe and the United States, respectively, according to some studies.
These findings have drawn fire from some politicians who have tried to deflect domestic anger over their handling of the crisis by blaming China.
Is this the next big hotspot for the ‘little flu’?
28 Apr 2020
“So now the Fake News @nytimes is tracing the CoronaVirus origins back to Europe, NOT China. This is a first!” he tweeted on April 11, referring to a story about the studies in the The New York Times’ science section.
The findings also highlight the difficulties governments face in tracing the source of coronavirus outbreaks.
Less-developed countries may never know where their strains came from due to inadequate testing and sequencing capability.
India, for example, has released the genetic sequence of fewer than 40 samples to the public so far, a small number considering its huge population.
Most of the strains sampled in 35 early cases came from clades that could be traced to Italy and Iran, with only a few from China, according to a recent study. But researchers were not able to track further because of the lack of data.
A scientist on the study, Dr Mukesh Thakur, of the Zoological Survey of India, said it was too early to rule out China as the source of outbreaks in India because the number of samples at hand was limited.
A 20-year-old student studying medicine in Wuhan, for instance, might have come in contact with many people on the way home before she was tested positive on January 30.
Thakur said local media reported that the Indian government quarantined 3,500 people possibly linked to three positive cases imported from Wuhan.
“God knows how many of them tested positive in the subsequent stages,” Thakur said in an email response to the Post’s queries on Tuesday.
Some prominent scientists, including Francis Collins, director of the US National Institutes of Health, said the virus might have been spreading quietly in humans for years, or even decades, without causing a detectable outbreak.
The virus had thus adapted well to the human body. Some genes regulating its binding to host cells were similar, or even identical, to those found in some other highly infectious human viruses, such as HIV and Ebola.
According to some estimates, the ancestor of Sars-CoV-2, the virus causing Covid-19, might have left bats between 50 and 70 years ago. A recent study by a team of geneticists in Oxford University estimated the first outbreak of the current pandemic could have occurred as early as September last year.
They found that the dominant strains circulating in China and Asia were genetically younger than some popular strains in the United States.
Six animals inoculated with vaccine candidate then exposed to virus did not catch Covid-19 after 28 days
Up to 60 million doses could be produced by Serum Institute of India this year
Microbiologist Elisa Granato gets an injection on Thursday as part of the first human trials in Britain for a potential coronavirus vaccine. Photo: University of Oxford via AP
A leading candidate for a Covid-19 vaccine has shown promising results in animal trials, and is expected to see mass production in India within months.
The Serum Institute of India, the world’s largest maker of vaccines by volume, said on Tuesday that it plans this year to produce up to 60 million doses of a potential vaccine developed by the University of Oxford, which is under clinical trial in Britain.
While the vaccine candidate, called “ChAdOx1 nCoV-19”, is yet to be proven to work against Covid-19, Serum decided to start manufacturing it as it had shown success in animal trials and had progressed to tests on humans, Serum Chief Executive Adar Poonawalla said.
Six rhesus macaque monkeys were inoculated with the vaccine candidate at the National Institutes of Health’s Rocky Mountain Laboratory in Montana last month, according to The New York Times.
Covid-19 vaccine trial starts in Oxford, but remdesivir treatment reportedly flops in China tests
The subjects were exposed afterwards to large quantities of the novel coronavirus, but all six remained healthy after more than 28 days, the newspaper reported, citing researcher Vincent Munster, who conducted the test.
More than 3 million people have been reported to be infected globally and over 210,000 have died from Covid-19, the respiratory disease caused by the coronavirus.
“They are a bunch of very qualified, great scientists [at Oxford] … That’s why we said we will go with this and that’s why we are confident,” Poonawalla told Reuters in a phone interview.
“Being a private limited company, not accountable to public investors or bankers, I can take a little risk and sideline some of the other commercial products and projects that I had planned in my existing facility,” Poonawalla said.
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As many as 100 potential Covid-19 candidate vaccines are now under development by biotech and research teams around the world, and at least five of these are in preliminary testing in people in what are known as phase one clinical trials.
Poonawalla said he hoped trials of the Oxford vaccine, due to finish in about September, would be successful. Oxford scientists said last week the main focus of initial tests was to ascertain not only whether the vaccine worked but that it induced good immune responses and no unacceptable side effects.
Serum, owned by the Indian billionaire Cyrus Poonawalla, plans to make the vaccine at its two manufacturing plants in the western city of Pune, aiming to produce up to 400 million doses next year if all goes well, Poonawalla said.
“A majority of the vaccine, at least initially, would have to go to our countrymen before it goes abroad,” he said, adding that Serum would leave it to the Indian government to decide which countries would get how much of the vaccine and when.
Rhesus macaque monkeys are often used in animal testing because of their similarity to humans. Photo: AFP
Serum envisages a price of 1,000 rupees (US$14.70) per vaccine, but governments would give it to people without charge, he said.
He said Prime Minister Narendra Modi’s office was “very closely” involved in the vaccine production and the company is hoping the government will help foot the cost of making it.
Over roughly the next five months, Serum will spend some 300 million to 400 million rupees (US$4.4 million to US$5.9 million) on making around 3-5 million doses per month, he said. “[The government] are very happy to share some risk and fund something with us, but we haven’t really pencilled anything down yet,” Poonawalla said.
Coronavirus: clinical trial begins on third vaccine candidate in China
22 Apr 2020
Serum has also partnered with the US biotech firm Codagenix and Austria’s Themis on two other Covid-19 vaccine candidates and plans to announce a fourth alliance in a couple of weeks, he said.
Serum’s board last week also agreed to invest roughly 6 billion rupees (US$8.8 billion) on making a new manufacturing unit to solely produce coronavirus vaccines, Poonawalla said.
Concerns are rising that China is repeating its mistake of a decade ago by pursuing short-term debt-fuelled economic growth at the cost of long-term sustainability
Local governments are stepping up spending on infrastructure projects in a bid to offset the slowdown caused by the coronavirus outbreak and subsequent lockdowns
Construction of high-speed railways, motorways and airports is an old tactic that Beijing dusted off after the pandemic led to a 6.8 per cent economic contraction in the first quarter. Photo: Xinhua
China’s huge stockpile of local government debt, one of the biggest “grey rhino” risks threatening the Chinese economy’s future, is set to rise steeply as local authorities rush to increase capital spending to help offset the damage caused by the coronavirus outbreak.
As Beijing discusses increasing the central government budget deficit and monetary policy easing to spur economic growth, many local governments see the situation as a golden opportunity to realise their investment ambitions, fanning concerns that China is repeating its mistake of a decade ago by pursuing short-term debt-fuelled economic growth at the cost of long-term sustainability.
In one of the latest investment drives, the southeastern province of Fujian announced on Sunday that it had signed contracts for 391 new projects with a combined investment value of 783.6 billion yuan (US$110.6 billion). Projects undertaken by central government-owned companies, which received significant lending support in the first quarter, accounted for more than half of the promised investment in Fujian, some 92 projects worth 424.5 billion yuan.
The landlocked eastern province of Anhui is also planning 2,583 new projects this year at a cost of 450 billion yuan, a third of which have been created in the last two weeks.
Construction begins for major sea crossing to link Shenzhen and Zhongshan in Greater Bay Area
In addition to work on existing construction projects, costing around 850 billion yuan, the province has also prepared a list of 3,300 reserve projects with a total investment value of 5.4 trillion yuan (US$762 billion) which could theoretically be started at any point in the future, pending government approval and funding support.
“The most powerful and effective way to offset the economic slowdown is to increase the size of investments,” Wang Qikang, an official with the Anhui economic planning office said on Friday. “[We] must quicken the pace of construction, working day and night to win back the lost time [from the coronavirus lockdowns].”
Construction of high-speed railways, motorways and airports is an old tactic that Beijing dusted off after the pandemic led to a 6.8 per cent economic contraction in the first quarter.
Infrastructure construction has already been hit hard amid the lockdowns, plunging 19.7 per cent in the first three months of the year compared to a year earlier.
Many [local governments] are still striving to achieve a high growth rate without the guidance of a national [gross domestic product] target – Liu Xuezhi
“The investment stimulus mindset has hardly been eradicated at the local level,” said Liu Xuezhi, a senior researcher with the Bank of Communications in Shanghai. “In particular, many [local governments] are still striving to achieve a high growth rate without the guidance of a national [gross domestic product] target.”
Before the start of the coronavirus outbreak, Beijing was thought to be targeting a
of around 6 per cent this year after achieving 6.1 per cent in 2019, although many local governments appear to be setting their own annual targets still using the original expected goal as a guide.
However, that target was never made public because the meeting of the
scheduled for early March, where the growth target would normally have been released, was postponed due to the virus.
The government announced on Wednesday that the NPC will be held from May 22, when a new, likely lower, growth target could be announced.
China’s first-quarter GDP shrinks for the first time since 1976 as coronavirus cripples economy
International rating agency Moody’s warned that greater infrastructure spending would result in higher debt for regional and local governments, increasing their financial risks amid a sharp slowdown in tax revenues.
“Such investments are less likely to be a main support measure [chosen by Beijing] now given the government’s focus on avoiding a rapid increase in leverage and asset price inflation,” Moody’s analysts Michael Taylor and Lilian Li said on Tuesday.
At the end of March, local government debt stood at 22.8 trillion yuan (US$3.2 trillion), according to the Ministry of Finance. But implicit liabilities, which are hidden in local financing vehicles, state firms and public-private partnership projects, are believed to be much larger, with some estimates pointing towards an additional debt of over 30 trillion yuan.
Chinese central bank governor Yi Gang, along with other officials, have already warned against excessive economic stimulus, saying it would add risks to China’s financial system.
A key risk is that local governments are front-loading China’s long-term investment plan, especially in the railway sector, with more than 357 railway projects proposed by local governments.
Shandong province, for example, is preparing to build four new railway lines, including the Shandong portion of a second high-speed railway between Beijing to Shanghai.
“There is still a chance for infrastructure investment growth to hit 10 per cent if the government releases 2 trillion yuan (US$282 billion) in funding through local special purpose bonds and special treasury bonds,” said Haitong Securities’ chief economist Jiang Chao on Monday.
However, a local government debt monitoring report issued on Tuesday by the National Institution of Finance and Development warned that China’s local government fiscal situation is worsening rapidly as expenses surge and revenues drop.
“All levels of local governments in China will face huge debt repayment pressure in five years,” warned Yin Jianfeng, deputy director of the Beijing-based think-tank.
NEW YORK/SAN FRANCISCO (Reuters) – Amazon.com Inc (AMZN.O) has bought cameras to take temperatures of workers during the coronavirus pandemic from a firm the United States blacklisted over allegations it helped China detain and monitor the Uighurs and other Muslim minorities, three people familiar with the matter told Reuters.
China’s Zhejiang Dahua Technology Co Ltd (002236.SZ) shipped 1,500 cameras to Amazon this month in a deal valued close to $10 million, one of the people said. At least 500 systems from Dahua – the blacklisted firm – are for Amazon’s use in the United States, another person said.
The Amazon procurement, which has not been previously reported, is legal because the rules control U.S. government contract awards and exports to blacklisted firms, but they do not stop sales to the private sector.
However, the United States “considers that transactions of any nature with listed entities carry a ‘red flag’ and recommends that U.S. companies proceed with caution,” according to the Bureau of Industry and Security’s website. Dahua has disputed the designation.
The deal comes as the U.S. Food and Drug Administration warned of a shortage of temperature-reading devices and said it wouldn’t halt certain pandemic uses of thermal cameras that lack the agency’s regulatory approval. Top U.S.-based maker FLIR Systems Inc (FLIR.O) has faced an up to weeks-long order backlog, forcing it to prioritize products for hospitals and other critical facilities.
Amazon declined to confirm its purchase from Dahua, but said its hardware complied with national, state and local law, and its temperature checks were to “support the health and safety of our employees, who continue to provide a critical service in our communities.”
The company added it was implementing thermal imagers from “multiple” manufacturers, which it declined to name. These vendors include Infrared Cameras Inc, which Reuters previously reported, and FLIR, according to employees at Amazon-owned Whole Foods who saw the deployment. FLIR declined to comment on its customers.
Dahua, one of the biggest surveillance camera manufacturers globally, said it does not discuss customer engagements and it adheres to applicable laws. Dahua is committed “to mitigate the spread of the COVID-19” through technology that detects “abnormal elevated skin temperature — with high accuracy,” it said in a statement.
The U.S. Department of Commerce, which maintains the blacklist, declined comment. The FDA said it would use discretion when enforcing regulations during the public health crisis as long as thermal systems lacking compliance posed no “undue risk” and secondary evaluations confirmed fevers.
Dahua’s thermal cameras have been used in hospitals, airports, train stations, government offices and factories during the pandemic. International Business Machines Corp (IBM.N) placed an order for 100 units, and the automaker Chrysler placed an order for 10, one of the sources said. In addition to selling thermal technology, Dahua makes white-label security cameras resold under dozens of other brands such as Honeywell, according to research and reporting firm IPVM.
Honeywell said some but not all its cameras are manufactured by Dahua, and it holds products to its cybersecurity and compliance standards. IBM and Chrysler’s parent Fiat Chrysler Automobiles NV (FCHA.MI) did not comment.
The Trump Administration added Dahua and seven other tech firms last year to the blacklist for acting against U.S. foreign policy interests, saying they were “implicated” in “China’s campaign of repression, mass arbitrary detention, and high-technology surveillance against Uighurs, Kazakhs, and other members of Muslim minority groups.”
More than one million people have been sent to camps in the Xinjiang region as part of China’s campaign to root out terrorism, the United Nations has estimated.
Dahua has said the U.S. decision lacked “any factual basis.” Beijing has denied mistreatment of minorities in Xinjiang and urged the United States to remove the companies from the list.
A provision of U.S. law, which is scheduled to take effect in August, will also bar the federal government from starting or renewing contracts with a company using “any equipment, system, or service” from firms including Dahua “as a substantial or essential component of any system.”
Amazon’s cloud unit is a major contractor with the U.S. intelligence community, and it has been battling Microsoft Corp (MSFT.O) for an up to $10 billion deal with the Pentagon.
Top industry associations have asked Congress for a year-long delay because they say the law would reduce supplies to the government dramatically, and U.S. Secretary of State Mike Pompeo said last week that policies clarifying the implementation of the law were forthcoming.
FACE DETECTION & PRIVACY
The coronavirus has infected staff from dozens of Amazon warehouses, ignited small protests over allegedly unsafe conditions and prompted unions to demand site closures. Temperature checks help Amazon stay operational, and the cameras – a faster, socially distant alternative to forehead thermometers – can speed up lines to enter its buildings. Amazon said the type of temperature reader it uses varies by building.
To see if someone has a fever, Dahua’s camera compares a person’s radiation to a separate infrared calibration device. It uses face detection technology to track subjects walking by and make sure it is looking for heat in the right place.
An additional recording device keeps snapshots of faces the camera has spotted and their temperatures, according to a demonstration of the technology in San Francisco. Optional facial recognition software can fetch images of the same subject across time to determine, for instance, who a virus patient may have been near in a line for temperature checks.
Amazon said it is not using facial recognition on any of its thermal cameras. Civil liberties groups have warned the software could strip people of privacy and lead to arbitrary apprehensions if relied on by police. U.S. authorities have also worried that equipment makers like Dahua could hide a technical “back door” to Chinese government agents seeking intelligence.
In response to questions about the thermal systems, Amazon said in a statement, “None of this equipment has network connectivity, and no personal identifiable information will be visible, collected, or stored.”
Dahua made the decision to market its technology in the United States before the FDA issued the guidance on thermal cameras in the pandemic. Its supply is attracting many U.S. customers not deterred by the blacklist, according to Evan Steiner, who sells surveillance equipment from a range of manufacturers in California through his firm EnterActive Networks LLC.
“You’re seeing a lot of companies doing everything that they possibly can preemptively to prepare for their workforce coming back,” he said.
BEIJING (Reuters) – China announced on Wednesday that its parliament will open a key annual session on May 22, signalling that Beijing sees the country returning to normal after being reduced to a near-standstill for months by the COVID-19 epidemic.
During the gathering of the National People’s Congress in the capital, delegates will ratify major legislation, and the government will unveil economic targets, set defence spending projections and make personnel changes. The ruling Communist Party also typically announces signature policy initiatives.
The session was initially scheduled to start on March 5 but was postponed due to COVID-19, which has infected nearly 83,000 people and killed more than 4,600 on the mainland after emerging late last year in the central city of Wuhan.
As the epidemic has subsided, economic and social life gradually returned to normal, making it possible for the congress to convene, the official Xinhua news agency quoted the standing committee of the NPC, the legislature’s top decision-making body, as saying.
The committee also appointed Huang Runqiu as the new minister for ecology and environment, a post vacated when predecessor Li Ganjie became deputy Communist Party chief for Shandong province earlier this month, Xinhua reported.
Tang Yijun was also named as the new justice minister to replace Fu Zhenghua, who has reached the retirement age of 65 for ministers.
The Chinese People’s Political Consultative Conference (CPPCC), an advisory body to parliament, has proposed starting its annual session a day before the parliamentary session opens.
Analysts expect China to roll out additional fiscal stimulus in order to cushion the blow from COVID-19, which has developed in to a worldwide pandemic that some fear will trigger a severe global recession.
China’s economy contracted for the first time on record during the January-March period, when the government imposed severe travel and transport restriction to curb the spread of the epidemic.
Parliament is also expected to discuss the anti-government protests in Hong Kong, amid growing speculation that Beijing take steps to strengthen its grip on the city.
It is unclear how long parliament and its advisory body will meet for this time, and people familiar with the matter have told Reuters that this year’s annual sessions could be the shortest in decades due to COVID-19 concerns. Usually more than 5,000 delegates descend on Beijing from all over China for at least 10 days.
Beijing city plans to ease quarantine rules as early as Thursday, two sources familiar with the situation told Reuters, ahead of the key political meetings.
People arriving in the capital from other parts of China will no long have to be quarantined for two weeks unless they come from high-risk areas such as Heilongjiang in the north and some parts of Guangdong in the southeast, the sources said.
BEIJING, April 28 (Xinhua) — China’s youth organizations awarded May Fourth Medals to 94 individuals and 34 groups Tuesday for their great contributions to the country.
The medals, which are awarded annually, are the top honor for young Chinese. The Central Committee of the Communist Youth League and the All-China Youth Federation released the list of winners.
Medical teams assisting Hubei Province to combat the novel coronavirus disease (COVID-19) epidemic are among the groups awarded.
Covering a wide range of sectors, the individual winners include firefighters, military personnel, scholars, teachers, engineers, workers and medical staff.
Among the list, 34 were honored posthumously, including those who sacrificed their lives in the fight against COVID-19.
Image copyright BRENDAN SMIALOWSKIImage caption Kim Jong-un has not been seen in public for more than two weeks
Speculation and rumour about Kim Jong-un’s health may amount to nothing, but questions about who might succeed him in the short or long term will always be there. The BBC spoke to analysts about the contenders and whether history is on their side.
A male member of the Kim family has been in charge of North Korea ever since its founding by Kim Il-sung in 1948 – and the mythology of this family runs deep throughout society.
Propaganda about its greatness begins for citizens before they can even read: pre-schoolers sing a song called: “I want to see our leader Kim Jong-un.”
So how can you imagine a North Korea without this symbolic and political figure at the top? How would elites organise themselves, as well as society as a whole?
The easy answer is: we don’t know. More interestingly, they don’t know either. They have never had to do it.
Image copyrightXINHUAImage captionKim Il-sung is the founder of North Korea and his son Kim Jong-il took over
As Kim Jong-un was being prepared for power, they even began using the term “Paektu Bloodline” to help legitimise his rule. Paektu is the sacred and mythologised mountain where Kim Il-sung is said to have waged guerrilla war and where Kim Jong-il was reportedly born. Kim Jong-un still goes there when he wants to emphasise important policy decisions.
There has always been a Kim at the ideological heart of the country.
What would North Korea be like without such an heir? Kim Jong-un, 36, is believed to have children – but they are far too young. It is thought he has three children, the oldest being 10 and the youngest three. Kim Jong-un himself was considered young when he took power – he was 27.
It is likely that some sort of group leadership would emerge, perhaps as in Vietnam, that leans heavily on the founder’s teachings and legitimacy to boost their own standing.
Observers can track who holds certain key positions and can follow news and open-source intelligence about important institutions, but can’t really tell how factions are developing, nor who is holding power through personal rather than institutional bonds. Moreover, sometimes vice or deputy directors wield more real power than the titular heads of institutions. This makes all predictions extremely difficult.
The three remaining Kims
Image copyrightPATRICK SEMANSKY – POOL /GETTY IMAGESImage captionKim Yo-jong, as the only woman in the top leadership, has sparked fascination
The are three Kims who could potentially be involved in the political make-up of North Korea if Kim Jong-un were to disappear. They all face limitations in carrying on family rule.
The first is Kim Yo-jong, Kim Jong-un’s younger sister. She is said to have been a favourite of her father who commented on her precocity, her interest in politics from a young age. Her manner is efficient, mild and one suspects rather observant. Much has been made of her closeness to her brother. At the Singapore Trump-Kim summit she was famously on hand to pass him a pen to sign the agreement with, and at the next summit in Hanoi, was pictured peeking out from behind corners as her brother posed for statesman-like photos.
Yet she was not above a temporary demotion after the Hanoi summit – purportedly because of its failure although this will never be confirmed. She doesn’t sit on the top policy-making body, the State Affairs Commission, but is an alternate member of the Politburo and vice director of the Propaganda and Agitation Department (PAD) of the Workers’ Party of Korea. These may seem like incomprehensible acronyms but the PAD is a powerful organisation that ensures ideological loyalty in the system.
She is a woman, however, and this makes it hard to imagine her occupying the top position in such a deeply patriarchal country. North Korea is an extremely male state, in which gender carries rigid expectations. Being supreme leader, and certainly running the military, does not fit in the range of womanly duties.
The second is Kim Jong-chul. He is Kim Jong-un’s older brother, but has never appeared interested in politics or power. (He is known to be interested in Eric Clapton.) At most, he could be a symbolic link to the Kim family: perhaps made the head of a foundation and put forward to read the odd speech.
The final one is Kim Pyong-il, Kim Jong-il’s half-brother. His mother – Kim Jong-il’s stepmother – was angling to have him become Kim Il-sung’s successor. She failed and was sidelined by Kim Jong-il as he rose in influence. Kim Pyong-il was sent to Europe in 1979, where he has held various ambassadorships, returning to North Korea only last year. This means it is very unlikely he has the network to be a central player in elite politics in Pyongyang.
The second-most powerful man in North Korea right now
Image copyrightALEXANDER NEMENOV/AFP VIA GETTY IMAGESImage captionAs special envoy for Kim Jong-un Choe Ryong-hae (right) has met foreign dignitaries
There are other individuals who have been central in the Kim Jong-un era, but it is difficult to know who among them would form co-operative relationships and who would compete with one another.
One is Choe Ryong-hae. He has had his ups and downs under Kim Jong-un, but having weathered a few storms currently sits on the presidium of the politburo and is also first vice chairman of the State Affairs Commission. Last year he became the first new president in 20 years, replacing the aging Kim Yong-nam – so he is the person who represents the North at international engagements.
Choe has also held high positions in the military and the Organization and Guidance Department (OGD) of the Worker’s Party of Korea, responsible for enforcing loyalty throughout the regime. This is an extremely powerful organisation: it enforces the adherence of all citizens to North Korea’s ideology. He is probably the second most powerful man in North Korea.
The old spymasters and rising political grandees
Image copyrightOLIVIER DOULIERY-POOL/GETTY IMAGESImage captionKim Yong-chol travelled to Washington DC to meet Donald Trump
Another is Kim Yong-chol. This general paved the way for the Trump-Kim summits, meeting US Secretary of State Mike Pompeo several times. He has been head of the United Front Department (responsible for relations with South Korea) and the Reconnaissance General Bureau, the country’s main intelligence service. He seems to have suffered a demotion following the collapse talks with the United States, but it is unlikely this spymaster will remain obscure for long.
Yet another is Kim Jae-ryong. As well as being on the State Affairs Commission, he is Premier of the Cabinet, a moderately influential position. Relatively little is known about him, but his star has risen in the past years as others have fallen. He is known for managing industries and ran the most isolated province, home to key military-industrial sites, for several years. This may mean he has been closely involved in the nuclear program.
Jong Kyong-taek is responsible for the State Security Department, which investigates and punishes political crimes. It also helps physically protect the leadership. These are crucial responsibilities that help enforce stability in the system.
Hwang Pyong-so is another official who has held top military posts and has run the OGD in the Kim Jong-un era. Like Choe (and many others) he has been disciplined; he doesn’t seem to have been rehabilitated in the same way, however. Other 2010s foreign policy stalwarts Ri Yong-ho and Ri Su-yong have also seen roles diminish recently. They have been replaced by Ri Son-gwon and Kim Hyung-jun. The former is said to be an ally of Kim Yong-chol.
The military enforcers
A handful of top generals of the Korean People’s Army (KPA) would also certainly exert influence in any transition period. Currently, two men sit atop the General Political Bureau of the KPA, Kim Su-gil and Kim Won-hong. This bureau enforces political loyalty in the military, something that would be absolutely crucial during periods of uncertainty.
Kim Won-hong, helps illustrate how difficult it is to predict how power would be shared if Kim Jong-un were no longer there. Kim Won-hong and Hwang Pyong-so had been thought to be rivals, competing to influence Kim Jong-un at the other’s expense.
Amongst top elites, who would clash and who would ally? Would there be pro and anti-Kim Yo-jong factions? Would the fear of instability stop rivalries from getting out of hand? After all, it is in no elite politician’s interest to see the state collapse, opening the door for some kind of takeover by South Korea, or even China.
There is currently no perfect contender: his sister would have to overcome the sexism and the break from tradition of a male heir. Anybody else is not directly descended from that all-important Paektu bloodline. but in the end, they will all have to think of the unity of the state they have defied every international norm to preserve.
SHANGHAI (Reuters) – Apple Inc’s (AAPL.O) discounts on the iPhone 11 in China and the release of a new low-price SE model have put the company in a better position than rivals to weather a coronavirus-related plunge in global smartphone demand.
While China, which accounts for roughly 15% of Apple’s revenue, appears to be a rare bright spot, investors will be keen to get a picture of global demand when the Cupertino, California-headquartered company reports second-quarter results on Thursday.
The iPhone maker has shut retail stores in the United States and Europe following the COVID-19 outbreak, and China is the only major market where it has been able to reopen all shops.
Consumer spending is expected to be muted as the pandemic has crippled economies and Apple, the world’s second-most valuable tech company, is better armed with the launch of its new price-conscious iPhone model, analysts said.
“Apple is better positioned than most to experience a rapid recovery in a post COVID world,” Evercore analyst Amit Daryanani said in a research note. “We see demand as pushed out, not canceled.”
He added that the launch of the $399 iPhone SE suggested that Apple’s supply chain was getting back on its feet after weeks of shutdown earlier this year.
Analysts expect Apple to report a 6% drop in revenue and an 11% fall in net income in its fiscal second quarter, according to Refinitiv data.
On the other hand, Chinese brands such as Oppo and Vivo who have steadily moved to offer high-end models to challenge iPhones, stand to lose marketshare as bargain hunters choose Apple.
Earlier this month, several online retailers in China slashed prices of the iPhone 11 by as much as 18% – a tactic Apple has used in the past to boost demand. And while initial social media reaction to the new iPhone SE was muted, analysts said they were seeing a pick up in demand.
The cheaper iPhone SE could tempt iPhone owners to opt for a newer device, something they might have otherwise delayed in a weak economy, said Nicole Peng, who tracks the smartphone sector at research firm Canalys.
“People want to avoid uncertainty in a downturn,” she said. “Having a brand like Apple that can showcase quality and make people less worried about breakdowns or after-sales service can bring in buyers.”
CHEAP IS GOOD
Early data suggests that the Chinese smartphone market is recovering rapidly in the aftermath of the virus, and Apple has emerged relatively unscathed.
Sales of iPhones in China jumped 21% last month from a year earlier and more than three fold from February, government data showed, meaning March-quarter sales in the country were likely to have slipped just 1%.
To be sure, a recovery in Chinese demand won’t offset sales lost in the United States and Europe. And the company is yet to launch a smartphone enabled with 5G wireless technology like those offered by Asian rivals, a disadvantage for Apple so far.
But those same expensive 5G models may not sell well in the current climate of frugality, analysts said.
“If there are no massive subsidies (in China), I doubt there will be many smartphone users who will be eager to upgrade to 5G,” said Linda Sui, who tracks the smartphone sector at research firm Strategy Analytics.
Sui expects iPhone shipments in 2020 to be down 2 percentage points at the most, versus double digit declines at Chinese firms.
Apple also has revenue from its services business to fall back on. It has leveraged its large iPhone customer base to boost services revenue from music, apps, gaming and video.
“Apple’s Services segment should remain resilient in today’s work-from-home environment, thereby demonstrating the durability of Apple’s model,” Cowen analyst Krish Sankar said.
Beijing’s Chaoyang district remains the last high-risk area in China, with virus preventive measures continuing to impact on travel and shopping plans
China faces the dilemma of preventing a re-emerge of the pandemic, while also pushing to get its economy back to normal
China’s continued pandemic prevention measures, coupled with still hesitant consumer demand, will inevitably lead to persistent limitations on the nation’s economic recovery, analysts said. Photo: Bloomberg
After nearly three months of being quarantined by herself in Beijing, Mary Zhao was looking forward to the upcoming long weekend at the start of May to be able to finally reunite with her parents.
But Zhao was forced to abandon her plan for the Labour Day holidays as Beijing’s upmarket Chaoyang district, where she lives, remains the only high-risk zone for coronavirus in the entire country.
If she travelled the five hours by car, or two hours via bullet train, to the neighbouring Hebei province, she would first have to undergo a 14-day quarantine before seeing her parents. Her parents would also have the same two week quarantine to look forward to once they returned home if they came to visit their daughter in Beijing.
These strict controls to prevent a re-emergence of the coronavirus outbreak are making a return to normal life impossible for many, and mean the final economic and social cost
from China’s draconian preventive measures could be much larger than expected.
Wuhan declares ‘victory’ as central Chinese city’s last Covid-19 patients leave hospital
It underscores the dilemma facing China’s leaders on how to balance the need to
and to avoid a fresh outbreak. On the surface, China may be able to declare victory as even Wuhan, the city where the virus was first detected, announced that the last Covid-19 patient had left hospital on Sunday. But fears of a renewed outbreak have kept the country’s cinemas and most schools closed, with travel between provinces discouraged.
China’s national borders also remain largely closed, with flights being cut to a minimum, and a mandatory 14-day quarantine for every arrival. In the number of places where new cases have been reported, quarantine requirements have been tightened, including Harbin and a few other cities near the border with Russia.
Chaoyang, the home to one of Beijing’s main business districts and most foreign embassies, changed its risk rating to high from low in the middle of April after three new cases were reported, dealing a fresh blow to the district’s
and forcing many of the 3.5 million residents to cancel their travel plans.
On the outskirts of Beijing, near Beijing Capital International Airport, returning migrant workers to Picun village were ordered to stop at entrance and could only be escorted inside by their landlord, with many villages and residential compounds remaining closed to outsiders.
In the high-end shopping district of Guomao, some shops also remain closed as there are few potential customers, while over in the popular Sanlitun area, metal barriers restrict access and temperature checkpoints are still required.
The landmark Apple Store in the popular Taikoo shopping centre is open, but with limited customers allowed inside, there are long queues outside. Customers are required to scan a QR code to check their movements over the last few days before entering.
Coronavirus: More schools reopen in China for students preparing for university entrance exams
“Why do I have to spend 20 minutes just to get into the Apple Store? The sun has almost melted me down,” one visitor complained to the security guards at the front of the shop.
China’s continued pandemic prevention measures, coupled with still hesitant consumer demand, will inevitably lead to persistent limitations on the nation’s economic recovery, analysts said.
Ernai Cui, an economist at research firm Gavekal Dragonomics, said on Monday that China’s cautious approach to lifting restrictions “points to a weak second quarter for consumer services”, adding additional pressure to the economic recovery.Mao Zhenhua, a researcher at the China Institute of Economics at Renmin University, said China’s preventive measures will inevitably be a drag on production, employment and exports.
CHINDIA ALERT: You'll be living in their world, very soon 