29/04/2020
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
Posted in 22, 65, additional, advisory body, amid, analysts, announced, announces, annual, annual session, anti-government protests, appointed, arliamentary session, became, before, Beijing, blow, body, capital, central city, changes, China, China’s economy, Chinese People’s Political Consultative Conference (CPPCC), City, Communist Party, communist party chief, Congress, contracted, convene, Country, COVID-19, COVID-19 epidemic, curb, day, decision-making, defence spending, delegates, deputy, developed, due, during, earlier, Economic, economic targets, emerging, epidemic, expect, first time, fiscal stimulus, gathering, global recession, Government, gradually, grip, growing, Guangdong, Heilongjiang, Hong Kong, imposed, infected, initially, initiatives, January, justice minister, key session, killed, late last year, legislation, legislature’s, mainland, Major, make, making, March, May, minister for ecology and environment, ministers, months, more than, named, National People’s Congress, near-standstill, nearly, new, normal, on record, opens, order, parliament, parliamentary session, People, Period, personnel, policy, possible, Post, postponed, predecessor, projections, proposed, quarantine, quoted, ratify, reached, reduced, replace, reported, restriction, retirement age, returned, returning, roll out, ruling, saying, scheduled, session, set, severe, shandong province, signalling, signature, social life, speculation, spread, start, starting, strengthen, subsides, take steps, the standing committee of the NPC, this month, Thursday, to cushion, to open, top, Transport, travel, trigger, typically, Uncategorized, unclear, unveil, vacated, Wednesday, when, worldwide pandemic, Wuhan, Xinhua, Xinhua News Agency |
Leave a Comment »
31/03/2020
- Despite PMI data showing a return to growth in both the manufacturing and non-manufacturing sectors, China’s economic activity is still far from normal
- Headwinds include the threat of global recession, a second wave of coronavirus infections and a property slump, analysts warn
China’s economy has shown signs of recovery after a dismal start to the year. Photo: Xinhua
China’s economy showed signs of a recovery in March after a nationwide lockdown paralysed business in February, but analysts warned that it is not yet out of the woods.
Despite
stronger-than-expected government data released on Tuesday, a series of threats lying ahead could derail China’s fragile recovery, including a second wave of infections, a global recession, worsening deflation due to plunging oil prices and a potentially sharp fall in the property market.
“While the lowest point is behind us, it’s not the time to celebrate,” said Larry Hu, chief China economist at Macquarie Bank.
For now, March’s figures suggest that business conditions are improving considerably, as more people are able to return to work and coronavirus cases continue to fall.
While the lowest point is behind us, it’s not the time to celebrateLarry Hu
The official purchasing managers’ index (PMIs) surveys showed that both the manufacturing and services sectors returned to growth in March, with many factories and retailers reopening as mainland authorities got the pandemic under control.
It will be welcome news for Beijing after a series of economic data plunged to all-time lows in January and February – including February’s PMIs, which are viewed as leading indicators of the state of the economy for the month ahead.
The manufacturing PMI, a survey of sentiment among factory owners, bounced back to 52.0 in March from 35.7 in February, which was an all-time low by some distance.
China’s non-manufacturing PMI – including both the services and construction sectors – was even weaker in February at 29.6, but its recovery to 52.3 was more marked.
Coronavirus: What impact will the economic fallout from the Covid-19 pandemic have on you?
A number above 50 signifies growth in sector activity, while a number below indicates contraction.
Both indices were significantly higher than expected and produced the V-shaped recovery in sentiment that policymakers had been so desperately pursuing.
But analysts warned that this may be short-lived as virus containment measures are set to sap demand
across the globe, hitting China’s exports hard.
This was perhaps reflected in the fact that while many key components of the PMIs returned to growth in March, new export orders remained negative at 46.4.
Coronavirus: Chinese companies cut salaries and staff in industries hit hardest by Covid-19
“We would like to emphasise that the 52 reading [for manufacturing PMI] actually means a weak business resumption,” said Lu Ting, chief China economist at Nomura.
“We view the jump in both the manufacturing and non-manufacturing PMIs in March as one-off gains from the very low comparison bases in February.”
The dramatic collapse of the economy in the second month of the year meant March’s economic data was always likely to show a positive spike, with PMIs highly sensitive to short-term fluctuations in business conditions due to the way they are collated. Researchers simply ask respondents if things are better or worse than they were the previous month.
“This does not mean output is now back to its pre-virus trend,” said Julian Evans-Pritchard, senior China economist at Capital Economics, in a note. “Instead, it simply suggests that economic activity improved modestly relative to February’s dismal showing, but remains well below pre-virus levels. This is consistent with what the daily activity indicators show.”
It simply suggests that economic activity improved modestly relative to February’s dismal showing, but remains well below pre-virus levelsJulian Evans-Pritchard
Even the Chinese government urged caution against reading too much into the figures.
“We cannot say China’s economy has fully returned to normal levels based on a single month. We need to continue observing changes in the following months,” said a National Bureau of Statistics spokesman, adding that 96.6 per cent of large and medium-sized businesses were back to work as of March 25.
The official PMI survey, which is produced by the National Bureau of Statistics, is weighted more towards larger companies, including state-owned firms that have been the focus of government efforts to review production.
The Caixin-Markit manufacturing PMI data set to be published on Wednesday is weighted more towards smaller, private-sector firms and could show a less buoyant result given their struggles to resume operations.
A new phase of coronavirus blame game: what is the legacy of Covid-19 on global supply chains?
Officials in Beijing have been vocal in recent days about their concerns of a possible
. At a press conference in the capital on Monday, vice-minister of industry and information technology Xin Guobin said that small businesses and exporters might “struggle to survive” in the months ahead, due to global economic turbulence.
That was reflected in a new study by investment firm Fidelity International that showed while more than half of restaurants in China have reopened, daily turnover was 40 to 50 per cent below levels seen before the outbreak. Hotel occupancy figures, meanwhile, remain in single digits.
“Expect further slack in quarters three and four, which means the authorities will have to postpone their target to double gross domestic product growth levels to the first half of 2021,” said Carlos Casanova, Asia-Pacific economist at insurer Coface.
Source: SCMP
Posted in Beijing, Caixin-Markit, Capital Economics, China’s, Coface, coronavirus, coronavirus infections, economy, Fidelity International, global recession, Headwinds, Macquarie Bank, Manufacturing, national bureau of statistics, new export orders, non-manufacturing, out of the woods, pandemics, PMI, property slump, purchasing managers’ index (PMIs), restaurants, sectors, services and construction sectors, steadies, Uncategorized |
Leave a Comment »
CHINDIA ALERT: You'll be living in their world, very soon 