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.
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Image copyright PRESS INFORMATION BUREAUImage caption The area has become a hotspot in part because of a road India has built
The armies of the world’s two most populous nations are locked in a tense face-off high in the Himalayas, which has the potential to escalate as they seek to further their strategic goals.
Officials quoted by the Indian media say thousands of Chinese troops have forced their way into the Galwan valley in Ladakh, in the disputed Kashmir region.
Indian leaders and military strategists have clearly been left stunned.
The reports say that in early May, Chinese forces put up tents, dug trenches and moved heavy equipment several kilometres inside what had been regarded by India as its territory. The move came after India built a road several hundred kilometres long connecting to a high-altitude forward air base which it reactivated in 2008.
The message from China appears clear to observers in Delhi – this is not a routine incursion.
“The situation is serious. The Chinese have come into territory which they themselves accepted as part of India. It has completely changed the status quo,” says Ajai Shukla, an Indian military expert who served as a colonel in the army.
China takes a different view, saying it’s India which has changed facts on the ground.
Reports in the Indian media said soldiers from the two sides clashed on at least two occasions in Ladakh. Stand-offs are reported in at least three locations: the Galwan valley; Hot Springs; and Pangong lake to the south.
India and China share a border more than 3,440km (2,100 miles) long and have overlapping territorial claims. Their border patrols often bump into each other, resulting in occasional scuffles but both sides insist no bullet has been fired in four decades.
Their armies – two of the world’s largest – come face to face at many points. The poorly demarcated Line of Actual Control (LAC) separates the two sides. Rivers, lakes and snowcaps mean the line separating soldiers can shift and they often come close to confrontation.
The current military tension is not limited to Ladakh. Soldiers from the two sides are also eyeball-to-eyeball in Naku La, on the border between China and the north-eastern Indian state of Sikkim. Earlier this month they reportedly came to blows.
And there’s a row over a new map put out by Nepal, too, which accuses India of encroaching on its territory by building a road connecting with China.
Why are tensions rising now?
There are several reasons – but competing strategic goals lie at the root, and both sides blame each other.
“The traditionally peaceful Galwan River has now become a hotspot because it is where the LAC is closest to the new road India has built along the Shyok River to Daulet Beg Oldi (DBO) – the most remote and vulnerable area along the LAC in Ladakh,” Mr Shukla says.
India’s decision to ramp up infrastructure seems to have infuriated Beijing.
Image copyright AFPImage caption There have been protests in Nepal against Indi’s new road link
“According to the Chinese military, India is the one which has forced its way into the Galwan valley. So, India is changing the status quo along the LAC – that has angered the Chinese,” says Dr Long Xingchun, president of the Chengdu Institute of World Affairs (CIWA), a think tank.
Michael Kugelman, deputy director of the Asia programme at the Wilson Center, another think tank, says this face-off is not routine. He adds China’s “massive deployment of soldiers is a show of strength”.
The road could boost Delhi’s capability to move men and material rapidly in case of a conflict.
Differences have been growing in the past year over other areas of policy too.
The new federally-administered Ladakh included Aksai Chin, an area India claims but China controls.
Senior leaders of India’s Hindu-nationalist BJP government have also been talking about recapturing Pakistan-administered Kashmir. A strategic road, the Karakoram highway, passes through this area that connects China with its long-term ally Pakistan. Beijing has invested about $60bn (£48bn) in Pakistan’s infrastructure – the so-called China Pakistan Economic corridor (CPEC) – as part of its Belt and Road Initiative and the highway is key to transporting goods to and from the southern Pakistani port of Gwadar. The port gives China a foothold in the Arabian Sea.
In addition, China was unhappy when India initially banned all exports of medical and protective equipment to shore up its stocks soon after the coronavirus pandemic started earlier this year.
How dangerous could this get?
“We routinely see both armies crossing the LAC – it’s fairly common and such incidents are resolved at the local military level. But this time, the build-up is the largest we have ever seen,” says former Indian diplomat P Stobdan, an expert in Ladakh and India-China affairs.
“The stand-off is happening at some strategic areas that are important for India. If Pangong lake is taken, Ladakh can’t be defended. If the Chinese military is allowed to settle in the strategic valley of Shyok, then the Nubra valley and even Siachen can be reached.”
In what seems to be an intelligence failure, India seems to have been caught off guard again. According to Indian media accounts, the country’s soldiers were outnumbered and surrounded when China swiftly diverted men and machines from a military exercise to the border region.
This triggered alarm in Delhi – and India has limited room for manoeuvre. It can either seek to persuade Beijing to withdraw its troops through dialogue or try to remove them by force. Neither is an easy option.
“China is the world’s second-largest military power. Technologically it’s superior to India. Infrastructure on the other side is very advanced. Financially, China can divert its resources to achieve its military goals, whereas the Indian economy has been struggling in recent years, and the coronavirus crisis has worsened the situation,” says Ajai Shukla.
What next?
History holds difficult lessons for India. It suffered a humiliating defeat during the 1962 border conflict with China. India says China occupies 38,000km of its territory. Several rounds of talks in the last three decades have failed to resolve the boundary issues.
China already controls the Aksai Chin area further east of Ladakh and this region, claimed by India, is strategically important for Beijing as it connect its Xinjiang province with western Tibet.
Image copyright GETTY IMAGESImage caption India and China have a long history of border disputes
In 2017 India and China were engaged in a similar stand-off lasting more than two months in Doklam plateau, a tri-junction between India, China and Bhutan.
This time, too, talks are seen as the only way forward – both countries have so much to lose in a military conflict.
“China has no intention to escalate tensions and I think India also doesn’t want a conflict. But the situation depends on both sides. The Indian government should not be guided by the nationalistic media comments,” says Dr Long Xingchun of the CIWA in Chengdu. “Both countries have the ability to solve the dispute through high-level talks.”
Chinese media have given hardly any coverage to the border issue, which is being interpreted as a possible signal that a route to talks will be sought.
Pratyush Rao, associate director for South Asia at Control Risks consultancy, says both sides have “a clear interest in prioritising their economic recovery” and avoiding military escalation.
“It is important to recognise that both sides have a creditable record of maintaining relative peace and stability along their disputed border.”
Pou Chen makes footwear for the likes of Nike and Adidas, but says it has suffered from a lack of orders as global value chains strain under the impact from the virus
Chinese workers moved to Vietnam to help set-up new factories as the company expand its production, but have now become expendable
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports. Photo: Bloomberg
A group of 150 Chinese workers believe the world’s largest maker of trainers used the coronavirus as an excuse to fire them, having helped Taiwanese firm Pou Chen successfully expand its production into Vietnam for more than a decade.
Pou Chen, which makes footwear for the likes of Nike and Adidas, informed the group in late April that they would no longer be needed as they were unable to return to
from their hometowns in China due to the coronavirus lockdowns.
“We believe we contributed greatly to the firm’s relocation process, copying the production line management experience and successful model of China’s factories to Vietnamese factories,” said Dave Zhang, who started working for Pou Chen in Vietnam in 2003.
“Now, when the factories over there have matured, and there is a higher automation level in production, our value has faded in the management’s eyes and we got laid off, in the name of the automation level.”
Rush hour chaos returns to Vietnam’s streets as coronavirus lockdown lifted
The group claims the firm began to fire Chinese employees several years ago, with the total number dropping from over 1,000 at its peak to around 400 last year.
“We 150 employees were the first batch of Chinese employees to be laid off this year. We are all pessimistic and expect more will be cut,” added Zhang.
In its email on April 27, Pou Chen said it was forced to terminate the contracts of the Chinese employees across five of its factories due to an unprecedented decline in orders and financial losses.
The Chinese employees, many of whom have been working for the shoemaker for decades, said the compensation offered was unfair and below the levels required by labour law in both Vietnam and China.
In a further statement to the South China Morning Post, Pou Chen stood by the move as the coronavirus pandemic had reduced demand for footwear products and so required an “adjustment of manpower.”
“[The dismissals were] in accordance with the relevant labour laws of the country of employment … and employee labour contracts,” added the statement from Pou Chen, which employs around 350,000 people worldwide.
Company data showed Pou Chen’s first quarter revenues tumbled 22.4 per cent year-on-year to NT$59.46 billion (US$1.99 billion), the weakest in six years.
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports.
Last month, the company was also mulling pay cuts and furloughs that would affect 3,000 employees in Taiwan and officials based in its overseas factories, according to the Taipei Times.
Andy Zeng, who had worked for the firm since 1995, said the group were “very upset” when they received the news last month as the impact of the coronavirus pandemic began to reverberate around the world, disrupting global value chains.
“Most of us joined Pou Chen in the 1990s when we were in our late teens or early 20s, when the Taiwan-invested company started investing and setting up factories in mainland China. Now more than two decades have passed,” he said.
Zeng was among the first generation of skilled workers in China as Pou Chen developed rapidly, enjoying the benefits of cheap labour, although the workers themselves were rewarded with regular pay rises.
The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world – Andy Zeng
“I worked at the Dongguan branch of Pou Chen for 11 years from 1995.” Zeng added “In the 1990s and early 2000s, the company expanded rapidly in Dongguan with a growing number of large orders, and every worker had to work hard around the clock. I remember I earned 300 yuan (US$42) a month in 1995, and my monthly salary rose to 1,000 yuan (US$141) in 1998.”
Zeng’s salary eventually rose to over 3,000 yuan in 2005 as China’s economy boomed, leading Pou Chen to seek alternative production sites in Vietnam and Indonesia where labour and land were even cheaper. However, in the early 2000s, the new locations lacked skilled shoe manufacturing workers like Zeng.
“The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world and the offer of US$700 per month was not bad.” Zeng said.
“We actively cooperated with their plans. Over the past decade, we have been away from our families and hometowns, and followed the company’s strategy to work hard in Vietnam.
With no deaths and cases limited to the hundreds, Vietnam’s Covid-19 response appears to be working
“In 2005, the company sent me to its newly-built factory in Vietnam. This year was my 14th year in Dong Nai in Vietnam. I have witnessed the company’s production capacity in Vietnam become larger and larger. When I arrived, there were only a few production lines, and now there are at least dozens of them, employing more than 10,000 workers in each factory.”
According to a report in the Taipei Times on April 14, citing both Reuters and Bloomberg, Pou Chen was ordered to temporarily shut down one of its units in Vietnam over coronavirus concerns, according to Vietnamese state media.
The company was forced to suspend production for two days after failing to meet local rules on social distancing, Tuoi Tre newspaper reported.
“We Chinese employees actually were pathfinders for the company’s relocation from China to Vietnam,” said Zhang, who was in charge of a 1,700-worker factory producing 1.7 million shoe soles per month.
What our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult – Dave Zhang
“We were sent to resolve any ‘bottlenecks’ in the production lines that were slowing down the rest of the plant, because during the launch of every new production line, Vietnamese workers would strike and get into disputes. As far as I know, there were over a thousand Chinese employees managing various aspects of the production lines in the company’s Vietnamese factories.
“In fact, what our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult. That is to teach Vietnamese workers our experience of working on a production line, improve the productivity of the Vietnamese workers, and help the factories become localised.”
Overall, Pou Chen says it produces more than 300 million pairs of shoes per year, accounting for around 20 per cent of the combined wholesale value of the global branded athletic and casual footwear market.
“Because of cultural shock and great pressure to expedite orders, Vietnamese workers were not used to the management style of Taiwan factories,” Zhang added.
“Many of our Chinese employees were beaten by Vietnamese workers [due to cultural differences about work]. During anti-China protests in Vietnam, we were still under great pressure to keep the local production lines operating.”
SEOUL (Reuters) – South Korean and Chinese officials on Tuesday cast doubt on reports North Korean leader Kim Jong Un was ill after media outlets said he had undergone a cardiovascular procedure and was in “grave danger”.
Daily NK, a Seoul-based speciality website, reported late on Monday, citing one unnamed source in North Korea, that Kim was recovering after undergoing the procedure on April 12. The North Korean leader is believed to be about 36.
CNN cited a U.S. official with direct knowledge of the matter as saying Washington was “monitoring intelligence” that Kim was in grave danger after surgery. Bloomberg quoted an unnamed U.S. official as saying the White House was told that Kim took a turn for the worse after the surgery.
However, two South Korean government officials rejected the CNN report without elaborating on whether Kim had undergone surgery. The presidential Blue House said there were no unusual signs coming from the reclusive, nuclear-capable state.
Kim is the unquestioned leader of North Korea and the sole commander of its nuclear arsenal. He has no clear successor and any instability in the country could be a major international risk.
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The state KCNA news agency gave no indication of the whereabouts of Kim in routine dispatches on Tuesday, but said he had sent birthday gifts to prominent citizens.
An official at the Chinese Communist Party’s International Liaison Department, which deals with North Korea, told Reuters the source did not believe Kim was critically ill. China is North Korea’s only major ally.
Chinese foreign ministry spokesman Geng Shuang said Beijing was aware of reports about the health of Kim, but said it does not know their source, without commenting on whether it has any information about the situation.
South Korean shares exposed to North Korea tumbled and the Korean won fell on the reports. The won traded down more than 1% against the dollar even as South Korean government sources said Kim was not gravely ill.
U.S. stock futures were trading 0.5% lower, but it was not clear how much of that weakness was owing to the collapse in U.S. oil prices and consequent concerns over global demand.
Daily NK said Kim had been admitted to hospital on April 12, just hours before the cardiovascular procedure, as his health had deteriorated since August due to heavy smoking, obesity and overwork.
It said he was now receiving treatment at a villa in the Mount Myohyang resort north of the capital Pyongyang.
“My understanding is that he had been struggling (with cardiovascular problems) since last August but it worsened after repeated visits to Mount Paektu,” a source was quoted as saying, referring to the country’s sacred mountain.
Accompanied by senior North Korean figures, Kim took two well-publicised rides on a stallion on the snowy slopes of the mountain in October and December.
KIM’S HEALTH KEY TO STABILITY
An authoritative U.S. source familiar with internal U.S. government reporting on North Korea questioned the CNN report that Kim was in “grave danger”.
“Any credible direct reporting having to do with Kim would be highly compartmented intelligence and unlikely to leak to the media,” a Korea specialist working for the U.S. government said on condition of anonymity.
Japan’s top government spokesman, Yoshihide Suga, declined to comment on the reports of Kim’s health.
“We are regularly gathering and analysing information about North Korea with great concern,” he said. “We will keep gathering and analysing information regarding North Korea by collaborating with other countries such as the U.S.”
Kim’s potential health issues could fuel uncertainty over the future of the reclusive state’s dynastic rule and stalled denuclearisation talks with the United States, issues in which Kim wields absolute authority.
With no details known about his young children, analysts say his sister and loyalists could form a regency until a successor is old enough to take over.
Speculation about Kim’s health first arose following his absence from the anniversary of the birthday of its founding father and Kim’s grandfather, Kim Il Sung, on April 15.
On April 12, North Korean state media reported that Kim Jong Un had visited an airbase and observed drills by fighter jets and attack aircraft.
Two days later North Korea launched multiple short-range anti-ship cruise missiles into the sea and Sukhoi jets fired air-to-surface missiles as part of military exercises.
The missile launches were part of the celebrations for Kim’s grandfather, Seoul officials said, but there was no North Korea state media report on his attendance or the tests.
Reporting from inside North Korea is notoriously difficult, especially on matters concerning the country’s leadership, given tight controls on information. There have been false and conflicting reports in the past on matters related to its leaders.
Kim is a third-generation hereditary leader who rules North Korea with an iron-fist, taking over the titles of head of state and commander in chief of the military since late 2011.
In recent years Kim has launched a diplomatic offensive to promote both himself as a world leader and his hermit kingdom, holding three meetings with U.S. President Donald Trump, four with South Korean President Moon Jae-in and five with China’s President Xi Jinping.
He was the first North Korean leader to cross the border into South Korea to meet Moon in 2018. Both Koreas are technically still at war, as the Korean War of 1950-53 ended in an armistice, not a peace treaty.
Kim has sought to have international sanctions against his country eased, but has refused to dismantle his nuclear weapons programme, a steadfast demand by the United States.
NEW DELHI (Reuters) – Violent clashes erupted in Delhi between police and hundreds of university students on Friday over the enactment of a new citizenship law that critics say undermines India’s secular foundations.
The unrest has already led Japanese Prime Minister Shinzo Abe to cancel a planned visit to India from Sunday.
The new law offers a way to Indian citizenship for six minority religious groups from neighbouring Bangladesh, Pakistan and Afghanistan including Hindus and Christians, but not Muslims.
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Police fired tear gas and used baton charges to disperse scores of students demonstrating at Jamia Millia Islamia university in the heart of Delhi over the law.
Protesters attacked cars in the capital, and several people were injured and taken to hospital.
Zakir Riyaz, a PhD student in social work, said the new law made a mockery of India’s religious openness.
“It goes against the whole idea of a secular India,” he said, speaking by phone from the Holy Family Hospital in New Delhi where 15 of his fellow students were admitted after being injured in a police baton charge.
Police barricades were knocked down and streets were strewn with shoes and broken bricks. An official at the university dispensary said that more than 100 students had been brought in with injuries but all had been discharged.
Parvez Hashmi, a local politician who went to the protest site to speak to police, said about 50 students had been detained.
Students said it was meant to be a peaceful protest, with them trying to go from Jamia University to Parliament Street to show their opposition to the legislation. But police pushed them back, leading to clashes.
Critics of Prime Minister Narendra Modi’s government say it is promoting a Hindu-first agenda for India and that the citizenship law excluding Muslims showed a deep-seated bias against India’s 170 million Muslims.
Imran Chowdhury, a researcher, said “either give citizenship to refugees of all religions or none at all. The constitution is being tampered with in the name of religion.”
Modi’s ruling Bharatiya Janata Party denies any religious bias but says it is opposed to the appeasement of one community. It says the new law is meant to help minority groups facing persecution in the three nearby Muslim countries.
ABE CANCELS
The United Nations human rights office voiced concern that the new law is “fundamentally discriminatory in nature”, and called for it to be reviewed.
Two people were killed in India’s Assam state on Thursday when police opened fire on mobs torching buildings and attacking railway stations in protest at the new citizenship rules signed into law on Thursday.
Japan’s Prime Minister Shinzo Abe cancelled a trip to Assam for a summit with his Indian counterpart Narendra Modi that had been due to begin on Sunday.
Japan has stepped up infrastructure development work in Assam in recent years, which the two sides were expected to highlight during the summit. Abe had also planned to visit a memorial in the nearby state of Manipur where Japanese soldiers were killed in World War Two.
“With reference to the proposed visit of Japanese PM Abe Shinzo to India, both sides have decided to defer the visit to a mutually convenient date in the near future,” Indian foreign ministry spokesman Raveesh Kumar said in a tweet.
Japan’s Chief Cabinet Secretary Yoshihide Suga said both countries would decide on the appropriate timing for the visit although nothing has been decided yet.
A movement against immigrants from Bangladesh has raged in Assam for decades. Protesters there say granting Indian nationality to more people will further strain the state’s resources and lead to the marginalisation of indigenous communities.
HONG KONG (Reuters) – Staff at Cathay Pacific Airways, Hong Kong’s flagship airline, are on edge.
A Cathay Pacific Boeing 777-300ER plane lands at Hong Kong airport after it reopened following clashes between police and protesters, in Hong Kong, China August 14, 2019. REUTERS/Thomas Peter
Their city has been gripped by months of anti-government protests, and their company is feeling the wrath of China’s aviation regulator after some staff members took part or expressed support.
Since an Aug.9 directive by the Civil Aviation Authority of China (CAAC) that called for the suspension of staff who supported or participated in the demonstrations, the regulator has rejected some entire crew lists without explanation, two sources with knowledge of the matter told Reuters.
The rejections have forced Cathay to scramble, pulling pilots and flight attendants off standby while it investigates social media accounts in an effort to determine which crew member has been deemed a security threat, one of the sources said.
Other disruptions have come in the form of a huge jump in the number of plane inspections upon landing, four pilots said.
The flexing of regulatory muscle has contributed to a climate of fear within the airline, with employees telling Reuters they felt Cathay’s longer-term future as an independent company was highly uncertain and subject to Beijing’s whims.
The CAAC’s labelling of employees who support the protest as a security risk and its demand that they be suspended from flying over mainland airspace has been a de facto career killer.
Around three quarters of Cathay flights use mainland airspace and due to the directive, 30 rank-and-file staff, including eight pilots and 18 flight attendants, have been fired or resigned under pressure, according to the Hong Kong Cabin Crew Federation.
Cathay CEO Rupert Hogg and his top deputy also resigned in August amid the mounting regulatory scrutiny on the 73-year-old airline, one of the region’s most high-profile brands that draws on Hong Kong’s British heritage.
“Things changed very quickly,” said Jeremy Tam, a pro-democracy lawmaker and pilot who resigned from the airline after the CAAC directive, likening the atmosphere to a political trial. “The threat is huge and it’s almost like zero to 100 in two seconds.”
Reuters talked to 14 current and former employees for this article. Nearly all declined to be identified for fear of being fired or due to the sensitivity of the matter.
The CAAC did not respond Reuters requests for comment on the rejections of crew lists or the increase in plane checks.Cathay said in a statement it must comply with all regulatory requirements. “Quite simply, this is our licence to operate; there is no ground for compromise,” it said.
The airline declined to comment on the number of employee departures, but said any terminations took into account factors such as a person’s ability to perform their role.
DEMERIT SYSTEM
Aviation regulators around the world conduct occasional plane inspections at airports to ensure an airline is in compliance with safety regulations.
But after the CAAC’s Aug. 9 directive, the once-infrequent inspections occurred almost daily and included the new and unusual step of checking phones owned by crew for anti-China photos and messages, the pilots said, adding that this had led to flight delays.
The step-up in checks has increased the likelihood of regulators finding minor issues to write up, which pilots said had included dirt on the plane’s exterior and scratches on a fire extinguisher.
Infractions can have outsized consequences under the CAAC’s strict demerit points system, they said, noting the regulator could force Cathay to reduce its number of flights, cut destinations or in a worst-case scenario, revoke the airline’s right to fly to mainland China.
Management has urged staff to do their utmost to avoid infractions.
“It is nothing less than the survival of the airline at stake,” said a senior employee. “Management have made that abundantly clear at meetings.”
Executives are particularly sensitive after seven incidents outside mainland China in the past two months in which pre-flight checks found emergency oxygen bottles for crew were depleted.
The CAAC is more public than many regulatory peers about disclosing safety violations, warnings and punishments.
In 2017, Emirates was banned from expanding its operations for six months following two safety incidents, while flag carrier Air China Ltd was ordered last year to cut Boeing Co 737 flights by 10% after an emergency descent linked to a pilot smoking an e-cigarette in the cockpit.
Cathay declined to provide information on its points under the CAAC system but said it wanted to emphasise that there had been no impact on its flight services into mainland China.
The pilots said the high frequency of airplane checks, which one described as “very intimidatory”, was starting to recede.
A THOUSAND CUTS
Employees are also feeling pressure from other regulatory bodies.
Last week, ahead of China’s National Day on Oct.1, immigration officers at some mainland airports requested photos of crew with the Chinese flag, said a pilot at regional arm Cathay Dragon who flies to the mainland regularly.
He said to his knowledge, most pilots – many of whom are expats from Western countries – had refused but Hong Kong cabin crew were “too nervous to say no” given the scrutiny on their actions by the company and the Chinese government.
“Everyone is walking on eggshells in China,” the pilot said.
Cathay did not respond to a request for comment, while China’s Ministry of Public Security, which oversees immigration, did not respond to a request for comment during a week of public holidays.
There has been no let-up in the widespread, sometimes violent, unrest that has beset Hong Kong. Triggered by a now-withdrawn extradition bill, it has morphed into an outpouring of opposition to the former British colony’s Beijing-backed government.
The crisis has also meant a sharp drop in travel demand to Hong Kong, putting more pressure on Cathay.
Cathay’s overall passenger numbers were down 11.3% in August. Flights at Cathay Dragon, which does most of Cathay’s mainland flying, were on average 60-65% full in September, down from the usual 80%, according to estimates from two pilots.
The pilots said while the sharp drop in demand was in some ways similar in scale to that weathered by Cathay during the SARS epidemic and the global financial crisis, there were key differences that felt more threatening to the company’s future.
Some state-controlled firms such as China CITIC Bank International and Huarong International have told employees to avoid flying with Cathay, and it has been attacked by Chinese state news organisations as well as by many mainland consumers on social media.
CAAC’s Aug.9 statement which called staff who supported the protests a security risk has also put Cathay’s reputation as one of the world’s safest airlines under a cloud it does not deserve, employees said.
Many acknowledged the new management team, which oversees around 33,000 employees, has few palatable options in dealing with the situation given the sway Beijing holds over the airline’s operations.
But they lamented the loss of freedom of speech and sense of job security, saying employees are afraid to speak about anything even vaguely political or voice support for protests on social media for fear of being reported by colleagues under a whistleblower policy.
“It has become a Hong Kong company with mainland employment terms,” a pilot at Cathay Dragon said. “The risk is death by a thousand cuts.”
Expensive presents are officially discouraged but have become the norm at many schools on day of appreciation for educators
Students at Yangzhou Technical Vocational College form the Chinese characters for “Hello Teacher” to mark China’s Teachers’ Day. Photo: Handout
Despite a decade of official discouragement, parents in China have been struggling with one of the biggest dilemmas of the school year – how to mark the country’s annual Teacher’s Day.
Ellen Yuan agonised for a day and a night before sending her son off to kindergarten on Tuesday with a 1,000 yuan (US$140) gift card in his bag for the teacher.
It was the boy’s second week of attendance and Yuan had given no thought to any Teacher’s Day obligations –until she learned that several of her friends had been busy over the weekend preparing gifts for their children’s teachers.
“It makes me feel that I am being a drag on my son if I don’t do so,” said Yuan, who works for a foreign company in Shanghai.
Respecting teachers has traditionally been a fundamental social norm in China but gift giving on the special day for educators has gone beyond an expression of appreciation by their students, as parents have taken over with ever more expensive gifts – and sometimes cash – which they hope will mean their kids are well taken care of while at school.
What gift, how expensive it should be, and how to deliver it have become the biggest questions for many parents in the run-up to September 10 each year, even though the education ministry and its subordinate bodies have repeatedly issued directives over the past decade to ban teachers accepting gifts.
Yuan said one of her friends had bought a body care set worth more than 600 yuan for each of her child’s three teachers, another had bought an 800 yuan gift card, while a third had given the head teacher a 1,000 yuan bottle of perfume.
Some parents had delivered the presents directly to the school, while others had asked their children to take the gifts to their teachers. Yuan’s plan was to message the teacher and tell her to take the gift card from her son’s bag.
“I know it’s bad. I don’t want my kid to know that,” Yuan said.
Hundreds of teachers protest in China over poor pay
The question of whether parents should give gifts on Teacher’s Day was one of the hottest topics on Weibo, China’s Twitter-like social media platform, attracting more than 15 million views as of Tuesday afternoon.
“Of course we should not, but I don’t dare to ignore it,” one user said, winning more than 10,000 likes.
Chu Zhaohui, a researcher at the National Institute of Education Sciences, said the gift-giving trend had been partly driven by a “keeping up with the Joneses” mentality.
“Everybody has given a gift. Would my child be specially treated if I don’t? This is a common concern,” Chu said. As a result, the purpose of gift giving on Teacher’s Day had become about protecting the children’s interests instead of a sincere expression of gratitude, he said.
But not every teacher gets presents – with gifts usually reserved for those teaching the “main subjects” of mathematics, Chinese and English, which count the most in high school and college entrance examinations.
Emily Shen, an English teacher from a middle school in Hangzhou, in the eastern province of Zhejiang, said she also prepared gifts for the teachers of her two kids. “Some chocolate for them to take to school. And I myself would give a gift card to each of those who teach the main subjects,” she said.
Zhuang Ke, a music teacher at a primary school in Jiaxing, also in Zhejiang province, admitted she was embarrassed by the parents’ different treatment of teachers of “less important” subjects like her’s. “It’s always nice to receive presents. But teachers who teach music, art and PE are often forgotten,” she said.
Chinese kindergarten teacher fired for hot sun punishment
State broadcaster CCTV said in a commentary on its website on Sunday that “all forms of behavior that attempt to ruin normal teaching order and interfere in equality by sending gifts should be resolutely abandoned”. A similar message was run by a series of official media outlets at local level.
“The most fundamental way to stop parents from sending gifts is to treat the students equally and fairly every day, so that parents conclude it makes no difference whether they give a gift,” Rednet.cn, the official news portal of Hunan province, said on Monday.
Although some teachers have made it explicit to students that they will refuse presents on Teacher’s Day, Yuan said her son’s teacher accepted the gift, as did the teachers of her three friends’ children.
Image copyright EPAImage caption Officials say about 5,000 gathered for the fourth day of protests at the airport
Hong Kong International Airport cancelled all departures on Monday, as thousands of anti-government protesters occupied and caused disruption.
Passengers have been told not to travel to the airport, which is one of the world’s busiest transport hubs.
In a statement, officials blamed “seriously disrupted” operations.
Many of those protesting are critical of the actions of police, who on Sunday were filmed firing tear gas and rubber bullets at close range.
Some protesters wore bandages over their eyes in response to images of a woman bleeding heavily from her eye on Sunday, having reportedly been shot by a police projectile.
In a statement on Monday afternoon, Hong Kong’s Airport Authority said they were cancelling all flights that were not yet checked in.
More than 160 flights scheduled to leave after 18:00 local time (10:00 GMT) will now not depart.
Arrivals already heading into Hong Kong will still be allowed to land, but other scheduled flights have been cancelled.
Officials are now working to reopen the airport by 06:00 on Tuesday, a statement said.
Some passengers expressed annoyance at the disruption. “It’s very frustrating and scary for some people,” one man from Pakistan told the BBC. “We’ll just have to wait for our next flight.”
Helena Morgan, from the UK, said she was set to return to the UK to get her exam results on Thursday. “I’m hoping we get back for them and we’re not on a flight,” she said.
But others were more understanding of the protests. “I was expecting something, given all the news,” one arrival, Gurinda Singh, told Reuters news agency.
As rumours spread that police plan to move in on protesters on Monday evening, thousands opted to leave on foot. There are large backlogs for transport back into the centre, local reports say.
The BBC’s Stephen McDonell, who is at the scene, says the airport has effectively shut down while authorities work out how to deal with the crisis.
Hong Kong’s mass demonstrations and unrest show no sign of abating, more than two months after they were sparked by a controversial extradition bill.
Beijing officials have strongly condemned Sunday’s violence and linked violent protesters to “terrorism”.
Image copyright REUTERSImage caption Many of those who gathered carried signs condemning police conduct
What happened on Sunday?
On Sunday afternoon, a peaceful rally in the city’s Victoria Park led to clashes when protesters moved out of the area and marched along a major road despite a police ban.
There were confrontations in several central districts and police used rubber bullets in an attempt to disperse the demonstrators.
In the bustling central Wan Chai district, petrol bombs and bricks were thrown at police, who responded by charging at protesters.
A number of people, including a police officer, were injured in the clashes.
Videos on social media also showed officers storming enclosed railway stations and firing tear gas.
Footage inside another station showed officers firing what appeared to be rubber bullets at close range and several police officers beating people with batons.
Media caption Violence erupts in HK train stations
Local media outlets reported that suspected undercover police officers had dressed-up as protesters to make surprise arrests.
While protests in the city have turned increasingly violent, there were no reports of arrests during the three previous days of the airport sit-in.
What has the reaction been?
On Monday the Chinese authorities, who have not yet physically intervened to quell the unrest, used their strongest language yet to condemn violent protesters.
“Hong Kong’s radical demonstrators have repeatedly used extremely dangerous tools to attack police officers, which already constitutes a serious violent crime, and also shows the first signs of terrorism emerging,” Yang Guang, a spokesman for the Hong Kong and Macau Affairs Office (HKMAO), said at a press briefing.
“This wantonly tramples on Hong Kong’s rule of law and social order.”
Demonstrations started in June in opposition to a proposed extradition bill, which would have allowed suspected criminals to be sent to mainland China for trial.
Critics said it would undermine Hong Kong’s legal freedoms, and could be used to silence political dissidents.
Although the government has now suspended the bill, demonstrators want it to be fully withdrawn.
Their demands have broadened to include calls for an independent inquiry into alleged police brutality, and an amnesty for all arrested protesters.
Hong Kong is part of China but its citizens have more autonomy than those on the mainland.
It has a free press and judicial independence under the so-called “one country, two systems” approach – freedoms which activists fear are being increasingly eroded.
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CHINDIA ALERT: You'll be living in their world, very soon 
Coronavirus: Chinese workers in Vietnam cry foul after being fired by Taiwanese firm making shoes for Nike, Adidas
A group of 150 Chinese workers believe the world’s largest maker of trainers used the coronavirus as an excuse to fire them, having helped Taiwanese firm Pou Chen successfully expand its production into Vietnam for more than a decade.
Pou Chen, which makes footwear for the likes of Nike and Adidas, informed the group in late April that they would no longer be needed as they were unable to return to
from their hometowns in China due to the coronavirus lockdowns.
“We 150 employees were the first batch of Chinese employees to be laid off this year. We are all pessimistic and expect more will be cut,” added Zhang.
In its email on April 27, Pou Chen said it was forced to terminate the contracts of the Chinese employees across five of its factories due to an unprecedented decline in orders and financial losses.
The Chinese employees, many of whom have been working for the shoemaker for decades, said the compensation offered was unfair and below the levels required by labour law in both Vietnam and China.
“[The dismissals were] in accordance with the relevant labour laws of the country of employment … and employee labour contracts,” added the statement from Pou Chen, which employs around 350,000 people worldwide.
Company data showed Pou Chen’s first quarter revenues tumbled 22.4 per cent year-on-year to NT$59.46 billion (US$1.99 billion), the weakest in six years.
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports.
Andy Zeng, who had worked for the firm since 1995, said the group were “very upset” when they received the news last month as the impact of the coronavirus pandemic began to reverberate around the world, disrupting global value chains.
“Most of us joined Pou Chen in the 1990s when we were in our late teens or early 20s, when the Taiwan-invested company started investing and setting up factories in mainland China. Now more than two decades have passed,” he said.
Zeng was among the first generation of skilled workers in China as Pou Chen developed rapidly, enjoying the benefits of cheap labour, although the workers themselves were rewarded with regular pay rises.
The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world – Andy Zeng
What our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult – Dave Zhang
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