Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
The 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
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
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.
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“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.
US chip giant GlobalFoundries confirms it has ceased operations at its only Chinese facility, with industry experts saying the poorly-planned project was doomed to fail
Closure deals blow to China’s plans to move up semiconductor value chain, amid increasingly hostile tech rivalry with the United States
Beijing boasted that the final total investment in the GlobalFoundries plant could be US$10 billion. The plant was intended to produce 300mm wafers, a key material in making chips, but production never started at the 65,000 square metre facility, which was completed mid-2018. Photo: Weibo
US chip giant GlobalFoundries has halted operations at a joint venture factory in China, the company has confirmed, dealing a potential blow to China’s bid to own a bigger slice of the global semiconductor market.
The closure of the firm’s only China facility comes just three years after it announced plans to make chips in the mainland, and comes amid an escalating tech war with the United States.
The winding down, however, has little to do with the fierce superpower rivalry. It comes after two years of speculation as to what was actually happening at the US$100 million facility, which was hailed as “a miracle” by local media when announced to fanfare in 2017, but which never got off the ground.
Nonetheless, the symbolism is rich.
China is struggling in its efforts to boost its domestic chip research and production in a bid to counter US efforts to block it from American technology.
Last week, the US Department of Commerce upped the ante by banning the sale
of Huawei-designed chips produced outside America if they are made using the US software and technology, adding further pressure to the Chinese telecom giant’s global supply chain.
The GlobalFoundries factory, in a hi-tech park in the southwestern city of Chengdu, was one of China’s major foreign-invested semiconductor projects, for which the local government rolled out the red carpet three years ago.
At the time, Chengdu boasted that the final total investment in the plant could be US$10 billion. The plant was intended to produce 300mm wafers, a key material in making chips, but production never started at the 65,000 square metre facility, which was completed mid-2018.
A spokesperson for California-based GlobalFoundries confirmed that the Chengdu plant had stopped operations and that it had offered staff an “employee optimisation plan”, a commonly-used euphemism for lay-offs.
“The plan is being carried out on the basis of open and transparent communications with the employees and they have been offered various options to choose from based on their personal situations,” a company statement read.
A 2018 annual report from the joint venture, in which GlobalFoundries had a stake of 51 per cent with the rest controlled by an investment vehicle of the Chengdu government, showed that the plant had 320 employees.
A company notice sent to employees dated May 14 and seen by the Post said that after mid-June, the company would only pay 70 per cent of Chengdu’s minimum monthly wage, about 1,246 yuan (US$175.38), while negotiating severance packages with staff.
For some industry analysts who have followed the Chengdu project from its inception, its demise has less to do with the trade war, more to do with poor planning.
There was little detailed research and planning before the project was launched. As far as the Chengdu government is concerned, it lacks a sufficient understanding of GlobalFoundriesGu Wenjun, analyst
“There was little detailed research and planning before the project was launched. As far as the Chengdu government is concerned, it lacks a sufficient understanding of GlobalFoundries, its decision-making mechanism and economic strengths, and it did not get strong support from the central government,” said Gu Wenjun, chief analyst at Shanghai-based semiconductor research firm ICwise.
The idea of establishing a joint venture was first pitched to Chongqing municipality, a neighbouring city of Chengdu, in 2016. Chongqing signed a memorandum of understanding with GlobalFoundries to set up a plant to manufacture 300mm silicon wafers – components for making integrated circuits – using technology from GlobalFoundries’ Singapore factory.
After the deal to open a Chongqing plant fell through for unclear reasons, Chengdu moved in to cut a deal with GlobalFoundries in late-2016. A 2017 blueprint stated that 3,500 employees could be working at the site, according to Wallace Pai, then GlobalFoundries’ general manager for China.
But production never started. Initially the project was supposed to have two phases: using mainstream technologies to manufacture 300mm wafers from 2018, then transferring to more advanced technologies in late-2019.
However, in October 2018, the two partners decided to “bypass” the phase one manufacturing stage, partly because of China’s increasing demand for more advanced products and GlobalFoundries’ own financial stress. The project has since stalled.
Comparing official announcements from the Chengdu government and GlobalFroundries back in 2017, Gu from ICwise said the two had different focuses, which might explain the plant’s derailment. The government clearly wanted to bring in mainstream, lower-risk technologies to boost the city’s brand, while the company aimed for Chinese capital and government support to invest in more advanced technology, Gu said.
The joint venture will continue after the factory’s demise, with GlobalFoundries still expecting to expand sales in the Chinese market, the company said in its statement. It now has five factories, three in the US and one each in Singapore and Germany.
When The Post contacted the office of the joint venture partner within the Chengdu government, the person answering the phone said they did not know anything about the closure nor future plans, before hanging up without giving their name.
“Our focus in China is on developing and growing our partner ecosystem including creating local technology infrastructure and bringing more intellectual property vendors and electronic design automation partners to better serve the local market,” the company said.
According to the China Semiconductor Industry Association, China’s integrated circuits sales rose 15.8 per cent in 2019 from a year earlier to 756.2 billion yuan (US$106.44 billion), while sales in the global semiconductor market dropped by 12 per cent to US$412 billion.
Last week, Dutch company ASML Holding, a key supplier of chip-making equipment, set up a plant in Wuxi, in Jiangsu province, in a boost to China’s efforts to attract foreign semiconductor investment.
The statement, issued on 27 April but only reported this week, singles out stadiums, exhibition centres, museums and theatres as public facilities where it’s especially important to ban plagiarism.
“City constructions are the combination of a city’s external image and internal spirit, revealing a city’s culture,” the government statement says.
It calls for a “new era” of architecture to “strengthen cultural confidence, show the city’s features, exhibit the contemporary spirit, and display the Chinese characteristics”.
Image copyright STR / AFP / GETTYImage caption – Not the Arc de Triomphe, but a college gate in Wuhan
The guidelines on “foreign” architecture were mostly welcomed on Chinese social media.
“The ban is great,” wrote a Weibo user, according to state media the Global Times. “It’s much better to protect our historical architectures than build fake copycat ones.”
Another recalled seeing an imitation White House in Jiangsu province. “It burned my eyes,” she said.
Image copyright OLIVIER CHOUCHANA / GETTYImage caption Thames Town, an English-themed town near Shanghai, pictured in 2008
In 2013, the BBC visited “Thames Town”, an imitation English town in Songjiang in Shanghai.
The town features cobbled streets, a medieval meeting hall – even a statue of Winston Churchill – and was a popular spot for wedding photos.
“Usually if you want to see foreign buildings, you have to go abroad,” said one person. “But if we import them to China, people can save money while experiencing foreign-style architecture.”
Image copyright WANG ZHAO / GETTYImage caption – Raffles City, Chongqing, in 2019 – mimicking the Marina Bay Sands hotel in Singapore
China, of course, is not the only country to borrow – or copy – other countries’ designs.
Las Vegas in the US revels in its imitations of iconic foreign architecture including the Eiffel Tower and Venetian canals.
Thailand also has developments that mimic the Italian countryside and charming English villages, mainly aimed at domestic tourists.
NEW DELHI (Reuters) – Hundreds of foreign companies are actively procuring components for India and Pakistan’s nuclear programmes, taking advantage of gaps in the global regulation of the industry, according to a report by a U.S.-based research group.
Using open-source data, the nonprofit Centre For Advanced Defense Studies (C4ADS) report provides one of the most comprehensive overviews of networks supplying the rivals, in a region regarded as one of the world’s most dangerous nuclear flashpoints.
“India and Pakistan are taking advantage of gaps in global non-proliferation regimes and export controls to get what they need,” said Jack Margolin, a C4ADS analyst and co-author of the report.
It is seldom possible to determine whether individual transactions are illegal by using publicly available data, Margolin said, and the report does not suggest that companies mentioned broke national or international laws or regulations.
But past reports by the think tank, whose financial backers include the Carnegie Corporation and the Wyss Foundation, have often led to action by law enforcement agencies.
Spokesmen from the offices of India’s Prime Minister Narendra Modi, and Pakistan’s Prime Minister Imran Khan did not respond to requests for comment. Pakistan’s military, which plays a major role in decision-making for the nuclear weapons programme, also declined to comment.
To identify companies involved, C4ADS analysed more than 125 million records of public trade and tender data and documents, and then checked them against already-identified entities listed by export control authorities in the United States and Japan.
Pakistan, which is subject to strict international export controls on its programme, has 113 suspected foreign suppliers listed by the United States and Japan. But the C4ADS report found an additional 46, many in shipment hubs like Hong Kong, Singapore and the United Arab Emirates.
“In Pakistan’s case, they have a lot more stringent controls, and they get around these by using transnational networks… and exploiting opaque jurisdictions,” Margolin said.
The father of Pakistan’s atomic bomb, AQ Khan, admitted in 2004 to selling nuclear technology to North Korea, Iran and Libya. He was pardoned a day later by Pakistani authorities, which have refused requests from international investigators to question him.
India has a waiver that allows it to buy nuclear technology from international markets. The Indian government allows inspections of some nuclear facilities by the International Atomic Energy Agency, but not all of them.
Neither India or Pakistan have signed the international Treaty on the Non-Proliferation of Nuclear Weapons, adhered to by most nuclear powers. Consequently, they are not obliged to submit to IAEA oversight over all of their facilities.
C4ADS identified 222 companies that did business with the nuclear facilities in India that had no IAEA oversight. Of these, 86 companies did business with more than one such nuclear facility in India.
“It’s evidence that more needs to be done, and that there needs to be a more sophisticated approach taken to India,” Margolin said. “Just because the product is not explicitly bound for a military facility, that doesn’t mean that the due diligence process ends there.”
India and Pakistan have gone to war three times – twice over the disputed Kashmir region – since they won independence from British colonial rule in 1947.
Having for years secretly developed nuclear weapons capability, the two declared themselves nuclear powers following tit-for-tat atomic tests in 1998.
A few years later, in 2002, the two foes almost went to war for a fourth time, following an attack by Pakistan-based militants on the parliament in New Delhi. And a year ago, a suicide attack by a Pakistan-based militant group in a part of Kashmir controlled by India sparked another flare up in tensions.
Both countries are estimated to have around 150 useable nuclear warheads apiece, according to the Federation of American Scientists, a nonprofit group tracking stockpiles of nuclear weapons.
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
The coronavirus pandemic is set to cause a slump in Chinese investment in its signature
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
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.
The spring session of China’s Canton Fair has been postponed due to fears about the spread of the coronavirus pandemic, authorities in Guangdong province say
Premier Li Keqiang had insisted early this month that the fair’s spring session would go ahead as it was crucial for efforts to ‘stabilise’ the global economy
The spring session of China’s Canton Fair has been postponed due to the coronavirus outbreak. Photo: Xinhua
The spring session of China’s largest trade expo, the Canton Fair, has been suspended over concerns about the spread of the coronavirus, Chinese authorities said on Monday.
The announcement comes amid reports that regular foreign buyers were scrapping plans to attend the event, which was due to open on April 15. The fair has held its spring session in Guangzhou, the capital of Guangdong province, between mid-April and early May since 1957.
The decision was made after considering the current development of the pandemic, especially the high risk of imported infections, Ma Hua, deputy director of Guangdong’s department of commerce, was quoted as saying on Monday by the official Nanfang Daily.
Guangdong will assess the epidemic situation and make suggestions to the relevant departments of the central government, Ma said at a press conference.
No new date for the fair was announced, but veteran traders who regularly attend the event said the Guangdong government is talking with Beijing about a new time, possibly in May.
Premier Li Keqiang had insisted early this month that the fair’s spring session would go ahead despite the virus outbreak, as it was an important part of Beijing’s efforts to
Authorities of Guangdong, China’s main export and manufacturing hub, joined other large cities, including Beijing and Shanghai, in introducing new restrictions on Saturday that require all foreign visitors be isolated for 14 days at their own expense.
The containment measures, which come as China braces for a second wave
of imported coronavirus cases, would have applied to tens of thousands of foreign merchants attending the fair.
Coronavirus: Chinese companies cut salaries and staff in industries hit hardest by Covid-19
The Canton Fair occurs twice a year and is China’s oldest and largest exhibition. The spring session last year attracted 195,454 foreign buyers from 213 countries and regions across the world. The top five sources of buyers were from Hong Kong, India, the United States, South Korea and Thailand.
But a growing number of regular attendees have recently cancelled plans to take part in this year’s spring session, Chinese exporters said, as concerns mount about possible infection and extra expenses due to a mandatory two week quarantine after arrival.
“About 80 per cent of our firm’s veteran clients told us last month they won’t come this time,” said Jason Liang, a sales manager at a Guangzhou-based exporter of electronic products, who did not want his company identified. “Plus with this new [quarantine], I think at least 90 per cent or almost all of them would drop the trip.
“The costs – time, security and expense – are totally uncontrollable for international travel currently. We also have no plans to attend any exhibition before the summer.”
About 80 per cent of our firm’s veteran clients told us last month they won’t come this time … The costs – time, security and expense – are totally uncontrollable for international travel currently. Jason Liang
Felly Mwamba, a leader of the Congolese community in Guangzhou who has been in the city since 2003, said China’s quarantine measures made it hard for people to visit Guangzhou.
Xie Jun, a furniture and fabric exporter from Zhejiang, said buyers from developing countries that were part of the Belt and Road Initiative would be hard hit if they were forced to pay for quarantine and treatment.
“In February before the pandemic occurred, to cushion the impact some local governments in China’s exporting trade hubs, such as Yiwu and Jinhua, introduced subsidies to attract foreign merchants,” he said. “But now all the subsidies policies are cancelled from what I know.”
Coronavirus and the ‘war economy’: the US and China bicker as the shop goes down
Chinese exporters, traders, and even local residents in Guangdong, have previously voiced concern about authorities’ decision to press on with the even due to the growing number of imported cases to China.
“We strongly call on the government to cancel the spring session of the Canton Fair,” said Zhu Yinghua, a retired teacher in Guangzhou, said before the announcement.
“It’s too dangerous for us local residents if dozens of thousands of foreigners to flock into Guangzhou.”
NEW DELHI (Reuters) – India’s government has stepped up the purchase of air purifiers over the last two years, taking the number of devices in ministries to protect against deteriorating air quality to nearly 300, government data seen by Reuters showed.
Six federal ministries – including the health, foreign and home affairs – bought at least 159 air purifiers during 2018-2019 at a cost of 5 million rupees ($70,353), according to previously unpublished data obtained under a Right to Information (RTI) law.
That compares with at least 140 air purifiers bought for $55,000 during 2014-2017 for the six ministries and Prime Minister Narendra Modi’s office, as previously reported by Reuters. The latest data on purchases for Modi’s office was not available. (reut.rs/2ppjyBj)
The purchases come as the federal and city governments faced criticism for failing to address the problem of worsening air pollution, especially in the winter, and drew criticism from one activist.
“It’s absolutely criminal to spend taxpayers’ money in buying air purifiers for government officials,” said environmentalist Vimlendu Jha, who is a member of a government panel tasked with solving Delhi’s pollution crisis.
In November, the level of pollution in the capital forced authorities to shut schools, restrict the use of cars and declare a public health emergency.
A senior official at the environment ministry, which bears the most responsibility for tackling pollution, said there was no particular drive to buy purifiers to protect civil servants.
“The government is not spending a fortune by buying air purifiers. And it’s not that officials don’t get to inhale toxic air by confining themselves to their offices,” said the ministry official.
The six ministries and Modi’s office did not respond to requests for comment.
Air purifiers can cost up to nearly $1,000 and are too expensive for most Indians.
Per capita income in New Delhi, a city of more than 20 million, is about $400 a month and thousands of homeless people endure the cold and the toxic air while sleeping on the streets.
Reuters requested for data using the RTI law from the six ministries as it had comparable numbers previously reported in 2018. These were the ministries of foreign affairs, tourism, agriculture, health, home affairs and the federal think-tank Niti Aayog.
(Graphic: Modi’s government purifer purchases 2018-2019 link: here).
Of the total of 159 devices bought by the ministries, the home affairs ministry topped the list with 103 of them in 2018 and 2019, the data showed.
“All the air purifiers have been installed in various offices/rooms of this ministry,” the ministry said in its RTI response, adding the amount spent was 3.1 million rupees ($43,619).
In October and November, when New Delhi saw some its worst air pollution last year, the foreign ministry bought 12 purifiers. Four of them – bought for the minister’s office – were priced at nearly $1,000 each.
The federal health ministry bought 23 air purifiers in the last two years, including 14 in 2019, its highest annual purchases since 2015, the data showed.
The founder of Huawei has said there is “no way the US can crush” the company, in an exclusive interview with the BBC.
Ren Zhengfei described the arrest of his daughter Meng Wanzhou, the company’s chief financial officer, as politically motivated.
The US is pursuing criminal charges against Huawei and Ms Meng, including money laundering, bank fraud and stealing trade secrets.
Huawei denies any wrongdoing.
Mr Ren spoke to the BBC’s Karishma Vaswani in his first international broadcast interview since Ms Meng was arrested – and dismissed the pressure from the US.
“There’s no way the US can crush us,” he said. “The world cannot leave us because we are more advanced. Even if they persuade more countries not to use us temporarily, we can always scale things down a bit.”
However, he acknowledged that the potential loss of custom could have a significant impact.
Last week, US Secretary of State Mike Pompeo warned the country’s allies against using Huawei technology, saying it would make it more difficult for Washington to “partner alongside them”.
Australia, New Zealand, and the US have already banned or blocked Huawei from supplying equipment for their future 5G mobile broadband networks, while Canada is reviewing whether the company’s products present a serious security threat.
Mr Ren warned that “the world cannot leave us because we are more advanced”.
“If the lights go out in the West, the East will still shine. And if the North goes dark, there is still the South. America doesn’t represent the world. America only represents a portion of the world.”
Many of the UK’s mobile companies, including Vodafone, EE and Three, are working with Huawei to develop their 5G networks.
They are awaiting a government review, due in March or April, that will decide whether they can use Huawei technology.
Commenting on the possibility of a UK ban, Mr Ren said Huawei “won’t withdraw our investment because of this. We will continue to invest in the UK.
“We still trust in the UK, and we hope that the UK will trust us even more.
“We will invest even more in the UK. Because if the US doesn’t trust us, then we will shift our investment from the US to the UK on an even bigger scale.”
Image copyrightGETTY IMAGESImage captionHuawei has denied that it poses any risk to the UK or any other country
What does Mr Ren think about his daughter’s arrest?
Mr Ren’s daughter Meng Wanzhou, Huawei’s chief financial officer, was arrested on 1 December in Vancouver at the request of the US, and is expected to be the subject of a formal extradition request.
The first covers claims Huawei hid business links to Iran – which is subject to US trade sanctions. The second includes the charge of attempted theft of trade secrets.
Mr Ren was clear in his opposition to the US accusations.
“Firstly, I object to what the US has done. This kind of politically motivated act is not acceptable.
“The US likes to sanction others, whenever there’s an issue, they’ll use such combative methods.
“We object to this. But now that we’ve gone down this path, we’ll let the courts settle it.”
Image copyrightREUTERSImage captionMeng Wanzhou was arrested in Vancouver last December
What did Mr Ren say about Chinese government spying?
Huawei, which is China’s largest private company, has been under scrutiny for its links to the Chinese government – with the US and others expressing concern its technology could be used by China’s security services to spy.
Under Chinese law, firms are compelled to “support, co-operate with and collaborate in national intelligence work”.
But Mr Ren said that allowing spying was a risk he wouldn’t take.
“The Chinese government has already clearly said that it won’t install any backdoors. And we won’t install backdoors either.
“We’re not going to risk the disgust of our country and of our customers all over the world, because of something like this.
“Our company will never undertake any spying activities. If we have any such actions, then I’ll shut the company down.”
Is Huawei part of the Chinese state?
Analysis – Karishma Vaswani, BBC Asia business correspondent – Shenzhen
For a man known as reclusive and secretive, Ren Zhengfei seemed confident in the conviction that the business he’s built for the last 30 years can withstand the scrutiny from Western governments.
Mr Ren is right: the US makes up only a fraction of his overall business.
But where I saw his mood change was when I asked him about his links to the Chinese military and the government.
He refused to be drawn into a conversation, saying only that these were not facts, simply allegations.
Still, some signs of close links between Mr Ren and the government were revealed during the course of our interview.
He also confirmed that there is a Communist Party committee in Huawei, but he said this is what all companies – foreign or domestic – operating in China must have in order to abide by the law.
CHINDIA ALERT: You'll be living in their world, very soon 