Archive for ‘Transport’

22/05/2020

China has new US$1.4 trillion plan to seize the world’s tech crown from the US

  • The tech investment push is part of a fiscal package waiting to be signed off by the National People’s Congress, which convenes this week
  • This initiative will reduce China’s dependence on foreign technology, echoing objectives set forth previously in the ‘Made in China 2025’ programme
A conductor rehearses the military band on the sidelines of the National People's Congress in Beijing's Great Hall of the People in March of last year. China’s legislature is expected to sign off on a massive tech-led stimulus plan. Photo: AP
A conductor rehearses the military band on the sidelines of the National People’s Congress in Beijing’s Great Hall of the People in March of last year. China’s legislature is expected to sign off on a massive tech-led stimulus plan. Photo: AP

Beijing is accelerating its bid for global leadership in key technologies, planning to pump more than a trillion dollars into the economy through the roll-out of everything from next-generation wireless networks to artificial intelligence (AI).

In the master plan backed by President Xi Jinping himself, China will invest an estimated 10 trillion yuan (US$1.4 trillion) over six years to 2025, calling on urban governments and private hi-tech giants like Huawei Technologies to help lay 5G wireless networks, install cameras and sensors, and develop AI software that will underpin 

autonomous driving

to automated factories and mass surveillance.

The new infrastructure initiative is expected to drive mainly local giants, from 
Alibaba Group Holding

and Huawei to SenseTime Group at the expense of US companies.

As tech nationalism mounts, the investment drive will reduce China’s dependence on foreign technology, echoing objectives set forth previously in the “Made in China 2025”
 programme. Such initiatives have already drawn fierce criticism from the Trump administration, resulting in moves to block the rise of Chinese tech companies such as Huawei.
How will China’s annual legislative meetings affect the stock investor? Five key industries to watch
18 May 2020

“Nothing like this has happened before, this is China’s gambit to win the global tech race,” said Digital China Holdings chief operating officer Maria Kwok, as she sat in a Hong Kong office surrounded by facial recognition cameras and sensors. “Starting this year, we are really beginning to see the money flow through.”

The tech investment push is part of a fiscal package waiting to be signed off by China’s legislature, the National People’s Congress, which convenes this week. The government is expected to announce infrastructure funding of as much as US$563 billion this year, against the backdrop of the country’s worst economic performance since the Mao era.
The nation’s biggest purveyors of cloud computing and data analysis Alibaba, the parent company of the South China Morning Post, and Tencent Holding  will be linchpins of the upcoming endeavour. China has already entrusted Huawei, the world’s largest telecommunications equipment supplier, to help galvanise 5G. Tech leaders including Pony Ma Huateng and Jack Ma are espousing the programme.

Maria Kwok’s company is a government-backed information technology systems integration provider, among many that are jumping at the chance. In the southern city of Guangzhou, Digital China is bringing half a million units of project housing online, including a complex three quarters the size of Central Park in New York City. To find a home, a user just has to log on to an app, scan their face and verify their identity. Leases can be signed digitally via smartphone and the renting authority is automatically flagged if a tenant’s payment is late.

China is no stranger to far-reaching plans with massive price tags that appear to achieve little. There is no guarantee this programme will deliver the economic rejuvenation its proponents promise. Unlike previous efforts to resuscitate the economy with “dumb” bridges and highways, this newly laid digital infrastructure will help national champions develop cutting-edge technologies.

“China’s new stimulus plan will likely lead to a consolidation of industrial internet
providers, and could lead to the emergence of some larger companies able to compete with global leaders, such as GE and Siemens,” said Nannan Kou, head of research at BloombergNEF, in a report. “One bet is on industrial internet-of-things (IoT) platforms, as China aims to cultivate three world leading companies in this area by 2025.”

China is not alone in pumping money into the technology sector as a way to get out of the post-coronavirus economic slump. Earlier this month, South Korea said AI and wireless communications would be at the core of it its “New Deal” to create jobs and boost growth.

Nothing like this has happened before, this is China’s gambit to win the global tech raceMaria Kwok, COO at Digital China Holdings

The 10 trillion yuan that China is estimated to spend from now until 2025 encompasses areas typically considered leading edge, such as AI and IoT, as well as items such as ultra-high voltage lines and high-speed rail, according to the government-backed China Centre for Information Industry Development. More than 20 of mainland China’s 31 provinces and regions have announced projects totaling over 1 trillion yuan with active participation from private capital, a state-backed newspaper reported on Wednesday.

Separate estimates by Morgan Stanley put new infrastructure at around US$180 billion each year for the next 11 years – or US$1.98 trillion in total. Those calculations also include power and rail lines. That annual figure would be almost double the past three-year average, the investment bank said in a March report that listed key stock beneficiaries including companies such as China Tower Corp, Alibaba, GDS Holdings, Quanta Computer and Advantech Co.

Beijing’s half-formed vision is already stirring a plethora of stocks, a big reason why five of China’s 10 best-performing stocks this year are tech plays like networking gear maker Dawning Information Industry and Apple supplier GoerTek. The bare outlines of the master plan were enough to drive pundits toward everything from satellite operators to broadband providers.

China’s telecoms carriers push to complete ‘political task’ of 5G network roll-out amid coronavirus crisis

6 Mar 2020

It is unlikely that US companies will benefit much from the tech-led stimulus and in some cases they stand to lose existing business. Earlier this year, when the country’s largest telecoms carrier China Mobile awarded contracts worth 37 billion yuan for 5G base stations, the lion’s share went to Huawei and other Chinese companies. Sweden’s Ericsson got only a little over 10 per cent of the business in the first four months. In one of its projects, Digital China will help the northeastern city of Changchun swap out American cloud computing staples IBM, Oracle and EMC with home-grown technology.

It is in data centres that a considerable chunk of the new infrastructure development will take place. Over 20 provinces have launched policies to support enterprises using cloud computing services, according to a March research note from UBS Group.

Tony Yu, chief executive of Chinese server maker H3C, said that his company was seeing a significant increase in demand for data centre services from some of the country’s top internet companies. “Rapid growth in up-and-coming sectors will bring a new force to China’s economy after the pandemic passes,” he told Bloomberg News.

From there, more investment should flow. Bain Capital-backed data centre operator ChinData Group estimated that for every one dollar spent on data centres another US$5 to US$10 in investment in related sectors would take place, including in networking, power grid and advanced equipment manufacturing. “A whole host of supply chain companies will benefit,” the company said in a statement.
There is concern about whether this long-term strategy provides much in the way of stimulus now, and where the money will come from. “It’s impossible to prop up China’s economy with new infrastructure alone,” said Zhu Tian, professor of economics at China Europe International Business School in Shanghai. “If you are worried about the government’s added debt levels and their debt servicing abilities right now, of course you wouldn’t do it. But it’s a necessary thing to do at a time of crisis.”
Digital China is confident that follow-up projects from its housing initiative in Guangzhou could generate 30 million yuan in revenue for the company. It is also hoping to replicate those efforts with local governments in the northeastern province of Jilin, where it has 3.3 billion yuan worth of projects approved. These include building a so-called city brain that will for the first time connect databases including traffic, schools and civil matters such as marriage registry. “The concept of smart cities has been touted for years but now we are finally seeing the investment,” said Kwok.
Source: SCMP
11/05/2020

Coronavirus: China car sales mark first gain in almost two years after restrictions are eased

  • Sales in April hit 2.07 million units in the world’s biggest car market, up 4.4 per cent from a year earlier, according to the country’s largest industry association
  • The number of new energy vehicles (NEVs) sold fell for a tenth straight month to The global industry has been hit hard by the health crisis, but there is growing optimism of improvement in business in China as the country has largely contained the outbreak and started easing lockdown measures. Photo: AFP
The global industry has been hit hard by the health crisis, but there is growing optimism of improvement in business in China as the country has largely contained the outbreak and started easing lockdown measures. Photo: AFP

China’s monthly car sales rose for the first time in almost two years in April, industry data showed, as more customers visited showrooms after the economy began to open up and authorities loosened coronavirus-related travel restrictions.

Sales in April hit 2.07 million units in the world’s biggest car market, up 4.4 per cent from a year earlier, according to data from the China Association of Automobile Manufacturers, the country’s largest industry association.

This follows a 43 per cent drop in March and a sharper 79 per cent plunge in February

 as the pandemic pummelled demand. Monthly sales in China last rose in June 2018.

The number of new energy vehicles (NEVs) sold fell for a tenth straight month to 72,000 units, the data showed. NEVs include battery-powered electric, plug-in hybrid and hydrogen fuel-cell vehicles.

The global industry has been hit hard by the health crisis, but there is growing optimism of improvement in business in China as the country has largely contained the outbreak and started easing lockdown measures.

Volkswagen reported positive China sales in April, while General Motors’ China ventures saw double-digit year-on-year growth last 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

29/04/2020

China parliament to open key session on May 22 as epidemic subsides

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.

Source: Reuters

28/04/2020

Coronavirus: China’s capital city struggles to get back to normal amid continued outbreak worries

  • 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
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

restart the economy

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

struggling businesses,

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.

Source: SCMP

27/04/2020

Chinese self-driving truck startup Inceptio raises $100 million – sources

BEIJING/SHANGHAI (Reuters) – China’s Inceptio Technology, a startup developing self-driving trucks, has raised $100 million in its latest funding round from logistics firm GLP, its key strategic investor G7 and other investors, two sources familiar with the matter told Reuters.

The proceeds from its series A funding round will be used to further develop its technologies and to start commercial trials, said the sources, who declined to be named as they were not authorised to speak to media.

The company, which aims to operate a freight network with autonomous driving trucks in China from 2022, has partnerships with Dongfeng Automobile Co Ltd (600006.SS), Sinotruk Hong Kong Ltd (3808.HK) and Foton (600166.SS).

The two-year-old firm is developing autonomous driving software and an in-car computing system while the truckmakers are responsible for the vehicles’ platforms.

Inceptio declined to comment. G7 and Singapore-based GLP did not immediately respond to requests for comment.

Inceptio focuses on level 3 and 4 technologies. A level 3 vehicle will enable drivers to turn their attention away from driving but they still need to take over if the car encounters a problem, while with level 4 technologies, there is no human intervention in most circumstances.

The trucking industry is expected to an earlier adopter of autonomous driving technology compared to passenger vehicle makers as driving on highways is more predictable than on busy city streets.

German automaker Daimler (DAIGn.DE) and U.S. postal giant United Parcel Service Inc (UPS.N) have invested in self-driving trucks.

Source: Reuters

26/04/2020

China’s smog-prone Hebei saw pollution fall 15% from October-March

SHANGHAI (Reuters) – China’s smog-prone northern province of Hebei met its air quality targets by a big margin over the winter after concerted efforts to tackle emissions, a local official said on Sunday, without mentioning coronavirus-related factory shutdowns.

Average PM2.5 concentrations over the October-March period dropped 15% from a year earlier to 61 micrograms per cubic metre, while sulphur dioxide also fell by a third, said He Litao, vice-head of the provincial environmental bureau.

Most experts have attributed the significant decline in air pollution throughout China in the first quarter to the coronavirus outbreak and tough containment measures, which saw cities and entire  provinces locked down and sharply reduced traffic and industrial activity throughout the country.

With millions staying at home, concentrations of lung-damaging PM2.5 particles fell by nearly 15% in more than 300 Chinese cities in the first three months of 2020.

Shanghai saw emissions fall by nearly 20% in the first quarter, while in Wuhan, where the pandemic originated, monthly averages dropped more than a third compared to last year.

However, He of the Hebei environmental bureau attributed the local decline in pollution to the “conscientious implementation” of government decisions even in the face of unfavourable weather conditions.

According to a winter action plan published last year, 10 cities in Hebei were expected to cut lung-damaging small particles known as PM2.5 by 1%-6% compared to the previous year.

Despite the decline, average PM2.5 was still much higher than China’s official standard of 35 micrograms, and the recommended World Health Organization level of 10 micrograms.

Source: Reuters

25/04/2020

Coronavirus: China’s belt and road plan may take a year to recover from slower trade, falling investment

  • But trade with partner countries might not be as badly affected as with countries elsewhere in the world, observers say
  • China’s trade with belt and road countries rose by 3.2 per cent in the January-March period, but second-quarter results will depend on how well they manage to contain the pathogen, academic says
China’s investment in foreign infrastructure as part of its Belt and Road Initiative has been curtailed because of the coronavirus pandemic. Photo: Xinhua
China’s investment in foreign infrastructure as part of its Belt and Road Initiative has been curtailed because of the coronavirus pandemic. Photo: Xinhua
The coronavirus pandemic is set to cause a slump in Chinese investment in its signature

Belt and Road Initiative

and a dip in trade with partner countries that could take a year to overcome, analysts say.

But the impact of the health crisis on China’s economic relations with nations involved in the ambitious infrastructure development programme might not be as great as on those that are not.
China’s total foreign trade in the first quarter of 2020 fell by 6.4 per cent year on year, according to official figures from Beijing.
Trade with the United States, Europe and Japan all dropped in the period, by 18.3, 10.4 and 8.1 per cent, respectively, the commerce ministry said.
By comparison, China’s trade with belt and road countries increased by 3.2 per cent in the first quarter, although the growth figure was lower than the 10.8 per cent reported for the whole of 2019.
China’s trade with 56 belt and road countries – located across Africa, Asia, Europe and South America – accounts for about 30 per cent of its total annual volume, according to the commerce ministry.

Despite the first-quarter growth, Tong Jiadong, a professor of international trade at Nankai University in Tianjin, said he expected China’s trade with belt and road countries to fall by between 2 and 5 per cent this year.

His predictions are less gloomy than the 13 to 32 per cent contraction in global trade forecast for this year by the World Trade Organisation.

“A drop in [China’s total] first-quarter trade was inevitable but it slowly started to recover as it resumed production, especially with Southeast Asian, Eastern European and Arab countries,” Tong said.

“The second quarter will really depend on how the epidemic is contained in belt and road countries.”

Nick Marro, Hong Kong-based head of global trade at the Economist Intelligence Unit, said he expected China’s total overseas direct investment to fall by about 30 per cent this year, which would be bad news for the belt and road plan.

“This will derive from a combination of growing domestic stress in China, enhanced regulatory scrutiny over Chinese investment in major international markets, and weakened global economic prospects that will naturally depress investment demand,” he said.

The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed, while infrastructure projects in Bangladesh, including the Payra coal-fired power plant, have been put on hold.

The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed. Photo: AFP
The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed. Photo: AFP
Marro said the reduction of capital and labour from China might complicate other projects for key belt and road partner, like Pakistan, which is home to infrastructure projects worth tens of billions of US dollars, and funded and built in large part by China.

“Pakistan looks concerning, particularly in terms of how we’ve assessed its sovereign and currency risk,” Marro said.

“Public debt is high compared to other emerging markets, while the coronavirus will push the budget deficit to expand to 10 per cent of GDP [gross domestic product] this year.”

Last week, Pakistan asked China for a 10-year extension to the repayment period on US$30 billion worth of loans used to fund the development of infrastructure projects, according to a report by local newspaper Dawn.

China’s overseas investment has been falling steadily from its peak in 2016, mostly as a result of Beijing’s curbs on capital outflows.

Last year, the direct investment by Chinese companies and organisations other than banks in belt and road countries fell 3.8 per cent from 2018 to US$15 billion, with most of the money going to South and Southeast Asian countries, including Singapore, Vietnam, Indonesia and Pakistan.

Tong said the pandemic had made Chinese investors nervous about putting their money in countries where disease control measures were becoming increasingly stringent, but added that the pause in activity would give all parties time to regroup.

“Investment in the second quarter will decline and allow time for the questions to be answered,” he said.

“Past experience along the belt and road has taught many lessons to both China and its partners, and forced them to think calmly about their own interests. The epidemic provides both parties with a good time for this.”

Dr Frans-Paul van der Putten, a senior research fellow at Clingendael Institute in the Netherlands, said China’s post-pandemic strategy for the belt and road in Europe
might include a shift away from investing in high-profile infrastructure projects like ports and airports.
Investors might instead cooperate with transport and logistics providers rather than invest directly, he said.
“Even though in the coming years the amount of money China loans and invests abroad may be lower than in the peak years around 2015-16, I expect it to maintain the belt and road plan as its overall strategic framework for its foreign economic relations,” he said.
Source: SCMP
23/04/2020

China Focus: China-Europe freight trains help stabilize global supply chain

SHENYANG, April 23 (Xinhua) — With trucks standing bumper to bumper and large cranes loading containers on the train, work returned to normal at a logistics base in northeast China’s Liaoning Province.

The base, where the China-Europe freight trains are set to depart in Shenyang, the provincial capital, has seen stable departures since early April as the novel coronavirus epidemic ebbs away.

With the global supply chain being affected by restrictions in air, land, and port travel due to the global pandemic, China-Europe railway has been playing a more important role, experts say.

“The train was operated by staff in different sections, which means it does not require cross-border personnel health inspections, giving it advantages during the pandemic,” said Shan Jing, an industry insider who wrote a book on China-Europe freight trains.

In March, a total of 809 China-Europe freight trains carrying 73,000 containers were sent across China. Both numbers hit a monthly record.

At the Shenyang logistics base, trains depart to travel through Russia, Belarus, Poland and finally reach Germany in around 18 days. As of April 13, a total of 130 trains carrying 11,200 standard containers had departed from the base.

“The province sends a stable number of five trains each week,” said He Ruofan, a business manager with the Shenyang branch of China Railway Container Transport Corp., Ltd, operator of the trains.

The stable operation has made the route a top choice for many Chinese enterprises, said Yao Xiang, a manager with logistics group Sinotrans’s northeast company.

“Many shipping routes have been canceled, and the rest are more and more expensive amid the epidemic,” said Yao, noting the price for air cargo surged 5 to 10 times the normal price as flights decreased from China to Europe.

With increasing departing trains, returning trains on the route have also been increasing, Yao said.

Among the 130 trains that have been sent from the Shenyang base so far this year, 33 returned, carrying construction materials, car parts, mechanical equipment, and daily products.

“These goods provide supplies to large companies like BMW and Michelin’s Shenyang factories,” Yao said.

Medical supplies have also been sent to hard-hit Europe to fight against the coronavirus pandemic.

As of April 18, a total of 448,000 pieces of medical supplies weighing 1,440 tonnes had been sent to European countries via the route, according to China State Railway Group Company, Ltd.

“China-Europe freight trains have shown great service capabilities during the epidemic,” said Shan, the industry insider. “It serves as a new choice for European enterprises, and I believe more people will come to realize the importance of the route.”

Source: Xinhua

21/04/2020

India coronavirus: Can the Covid-19 lockdown spark a clean air movement?

Delhi before and after the lockdownImage copyright GETTY IMAGES
Image caption Delhi’s air quality has improved remarkably during the shutdown

When India shut down last month and suspended all transport to contain the spread of coronavirus, the skies over its polluted cities quickly turned an azure blue, and the air, unusually fresh.

As air pollution plummeted to levels unseen in living memory, people shared pictures of spotless skies and even Himalayan peaks from cities where the view had been obscured by fog for decades.

On one social messaging group, a resident of the capital, Delhi, which regularly records some of the foulest air in the world, celebrated the city’s “alpine weather“. Politician and author Shashi Tharoor wrote that the “blissful sight of blue skies and the joy of breathing clean air provides just the contrast to illustrate what we are doing to ourselves the rest of the time”.

Media caption India coronavirus lockdown cleans up Ganges river

Less than six months ago, Delhi was gasping for breath. Authorities said air quality had reached “unbearable levels”. Schools were shut, flights were diverted, and people were asked to wear masks, avoid polluted areas and keep doors and windows closed.

Delhi and 13 other Indian cities feature on a list of the world’s 20 most polluted. It is estimated that more than a million Indians die every year because of air pollution-related diseases. Industrial smoke, vehicular emissions, burning of trash and crop residue, and construction and road dust are the major contributors.

As urban Indians gazed at the skies and breathed clean air inside their homes, researchers hunkered down to track data on how the grinding lockdown – now extended to 3 May – was impacting air pollution across the country.

LucknowImage copyright GETTY IMAGES
Image caption Lucknow is another city on the top 20 world’s most polluted list

“This was an unprecedented opportunity for us to take a close look at how air pollution levels have responded to an extraordinary development,” Sarath Guttikunda, who heads Urban Emissions, an independent research group that provides air quality forecasts, told me.

Federal pollution control authorities quickly reported a marked improvement in air quality levels in 85 cities.

Dr Guttikunda and his team of researchers looked at the data spewed out by the 100-odd air quality monitoring stations all over India. They decided to concentrate on the capital Delhi and its suburbs – a massive sprawl called the National Capital region, where more than 20 million people live. Last winter, air pollution here had reached more than 20 times the World Health Organization’s safe limit.

Mumbai before and after the lockdownImage copyright HINDUSTAN TIMES
Image caption The financial capital Mumbai also seems very different

The deadliest particle in Delhi’s foul air is the tiny but deadly PM 2.5, which increases the likelihood of respiratory and cardiovascular diseases. They primarily come from combustion – fires, automobiles and power plants.

Urban Emissions found the levels of PM 2.5 in Delhi during the lockdown plummeted to 20 micrograms per cubic metre with a 20-day average of 35.

To put this into context, between 2017 and 2019, the monthly average of PM 2.5 in the capital was up to four times higher. (The national standard is set at 40, and the WHO has an annual average guideline of just 10 micrograms per cubic metre.)

“If 35 is the average lowest available PM2.5 with limited local emissions, it means that at least 70% of the pollution is locally generated,” Mr Guttikunda told me.

Media caption India coronavirus lockdown cleans up Ganges river

His study also found a marked dip in PM 10, caused mainly by road and construction dust, and nitrogen dioxide, which comes mainly from vehicular emissions, and nearly 90% of vehicles are off the road.

“The current crisis has shown us that clear skies and breathable air can be achieved very fast if concrete action is taken to reduce burning of fossil fuels,” says Sunil Dahiya, of the Centre for Research on Energy and Clean Air, which has also been tracking air pollution levels during the lockdown.

But will this prompt change? After all, urban Indians’ and the media’s panic and outrage during the deadly winter pollution every year soon gets lost in the fog of summer heat and concerns over monsoon rains and droughts.

“We don’t yet have a democratic demand for clean air,” Arunabha Ghosh, Chief Executive Officer of the Council on Energy, Environment and Water, a leading climate think tank, told me. Orders to clean up the air have almost always come from the courts, responding to pleas by NGOs.

Delhi pollutionImage copyright GETTY IMAGES
Image caption Pollution in Delhi peaks during winter

However, Dr Ghosh still hopes that “the experience of blue skies and fresh air could be a trigger to create a democratic demand for clean air in India”.

Crises often trigger life changing reforms. A fatal four-day “pea-souper” that engulfed London in 1952 and killed thousands provoked the passing of the Clean Air Act to reduce the use of smoky fuels.

China tried to clean up its air several times before hosting marquee international events – like the Beijing Olympics in 2008, the World Expo in Shanghai and the Guangzhou Asian Games in 2010 – before sliding back to grey, smoky skies.

But many believe the 2014 Apec meeting in Beijing, when China hosted 21 heads of Asia-Pacific economies, was a turning point. The rare blue skies over Beijing spawned the phrase ‘Apec blue‘. In a rush to clean its air, China introduced a set of far-reaching measures. Over the next four years, this resulted in a 32% drop in average pollution across major Chinese cities.

So could a lockdown to prevent the spread of a pandemic, which has imperilled the health and livelihoods of millions, trigger similar policy changes to clean up India’s air?

pollution campaignImage copyright GETTY IMAGES
Image caption The movement for clean air has been sporadic and mainly pushed by NGOs

Could it move to a shift in reducing traffic on the road by asking people to work from home in shifts now that millions have experienced clean air for the first time in years? (Facing energy shortages after the loss of the Fukushima nuclear power plant, Japan unleashed a Cool Biz campaign to cut down air conditioning in workplaces and reduce carbon emissions by asking office workers to shed their suits.)

Or can India use some of the money from an inevitable stimulus to help kick-start the economy go towards helping green industries? Renewables, experts say, creates more jobs than coal: India has already created nearly 100,000 jobs in solar and wind energy firms.

Can the country use the windfall revenues accruing from the steep decline in oil prices – most of India’s oil is imported – to provide rebates to polluting factories to set up much-needed emission control equipment?

“We have to learn lessons to deploy the economic recovery from the pandemic. We need growth, jobs and sustainable development,” says Dr Ghosh. Cleaning up the air could be the key. For too long, India – and Indians – have ignored their right to breathe easy.

What’s more, if China can reduce air pollution by 32% in four-and-a-half years, why can’t India pledge to reduce pollution by 80% in 80 cities by 2027, which is our 80th anniversary of Independence? asks Dr Ghosh.

It’s a good question.

Source: The BBC

Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India