12/08/2019
- Chief executive Rupert Hogg says staff who ‘support or participate in illegal protests’ would face disciplinary action that ‘may include termination of employment’
- Airline’s shares down 4.37 per cent on Monday morning to lowest level in 10 years, despite it complying with orders on Friday from China’s aviation authority
Cathay Pacific moved over the weekend to comply with new orders from China’s aviation authority. Photo: Bloomberg
Cathay Pacific has warned that it would sack staff taking part in illegal protests in Hong Kong, saying it would take a “zero tolerance” approach, as its shares slumped to their lowest level in 10 years in morning trading on Monday.
In a note to staff on Monday, chief executive Rupert Hogg said staff who “support or participate in illegal protests” would face disciplinary action that “could be serious and may include termination of employment”.
His warning indicated an escalation by the company, under pressure to crack down on employees after China’s civil aviation regulator said on Friday that airline staff supporting the Hong Kong protests would be barred from flights going to, from or through mainland China.
“We are all obliged to abide by law at all times,” Hogg said. “Cathay Pacific Group has a zero-tolerance approach to illegal activities. Specifically, in the current context, there will be disciplinary consequences for employees who support or participate in illegal protests. These consequences could be serious and may include termination of employment.”
By noon in Hong Kong, the stock had fallen 4.37 per cent to HK$9.85 (US$1.26), its lowest level since June 2009. Losses dragged the carrier’s parent company Swire Pacific down 5.4 per cent to HK$77.50, making it the worst performer on Hong Kong’s stock market during morning trading.
This was the lowest price since October 2018 for Swire, which owns 45 per cent of the airline. Air China, which owns 22.7 per cent of Cathay, also fell 1.53 per cent in Hong
On Friday, the Civil Aviation Administration of China (CAAC) told Hong Kong’s flagship carrier that any staff members who had taken part in what it called “illegal protests”, “violent actions” and “overly radical activities” would not be allowed to fly to or from the mainland, in a first warning shot at a Hong Kong-based corporate giant.
The CAAC also said that the airline would have to submit identification details of all crew operating all services using mainland China airspace, and that flights with unapproved crew lists would be barred. It gave the airline until Thursday to submit a detailed plan to improve its procedures.
Anti-extradition bill protesters join a sit-in protest at Hong Kong International Airport on Sunday. Photo: Reuters
Cathay Pacific had earlier said it would not stop staff members from taking part in demonstrations.
On Wednesday, Cathay Pacific chairman John Slosar said the company would not rein in staff for openly supporting the protests. “We certainly wouldn’t dream of telling them what they have to think about something,” Slosar said.
But in his second statement in two days in relations to the CAAC’s sanctions, Hogg said the “actions and words” of staff outside of work hours could have a “significant effect on the company”, adding that the actions of a few of Cathay’s 34,000 employees would be seen as a company position.
He also asked staff to not “support or participate” in the illegal protest at the airport, saying the carrier was concerned that the protests could become disorderly and violent.
No flights by Cathay Pacific, nor by its subsidiaries Cathay Dragon or HK Express, were delayed or cancelled on Saturday or Sunday, the company said.
The CAAC’s move was widely seen as a clear warning to Hong Kong’s business community to toe Beijing’s line to pressure ongoing anti-government protests in the city that have been taking place for over two months.
Despite the airline acting over the weekend to comply with the rules, Chinese state media continued to put pressure on the company.
Global Times, a tabloid associated with Communist Party mouthpiece People’s Daily, said on Sunday the airline had still not allayed all concerns despite its adjustments to comply with the ruling.
Carrie Lam’s remarks about Beijing’s sovereignty ‘add fuel to the fire’, analysts warn
“These are only small steps [showing] that Cathay Pacific is heading towards the right direction, and their sincerity will need to be tested over time,” the tabloid said in an opinion article on Sunday.
It said 2,000 company staff joined citywide strikes last Monday, and cited the case of a pilot who was arrested and charged with rioting during a demonstration on July 28.
“Cathay Pacific has touched on this behaviour lightly, which has a huge impact on the trust the industry and the public have towards the company,” the article said.
State broadcaster CCTV published a short video on Weibo on Monday morning of its anchor issuing further warnings to the airline, saying there were reports of staff continuing to join “illegal gatherings” and asking tourists not to go to Hong Kong.
“If this continues, it’s not a matter of whether or not people would still want to come to Hong Kong, but whether they would still want to be on your airline,” Kang Hui said in a one-minute video.
“Let me send a friendly reminder: one would not be in trouble had one not asked for it,” Kang said, in Mandarin and then in English, translating the popular Chinese internet meme phrase “No zuo no die” and claiming some Cathay Pacific staff pretended not to understand Mandarin. Cantonese is the dominant language in Hong Kong.
Elsewhere, the company announced that two of its airport employees
for leaking passenger information about a Hong Kong police soccer team who had been on a flight to mainland China. It has also suspended the pilot who was among 44 people charged with rioting on July 28.
Although the company does not clearly specify its country-by-country performance, China and Hong Kong produced half of all its 2018 revenue – HK$57 billion of a total of HK$111 billion. A fifth of all the carrier’s flight are to and from the mainland.
Source: SCMP
Posted in airline staff, airspace, Anti-extradition bill protesters, arrested, aviation authority, Beijing, business community, Cantonese, Carrie Lam, Cathay Dragon, Cathay Pacific, CCTV, charged with rioting, Civil Aviation Administration of China (CAAC), civil aviation regulator, Communist Party mouthpiece, draws line, English, Global Times, HK Express, Hong Kong, Hong Kong International Airport, illegal gatherings, illegal protests, Language, Mainland China, Mandarin, No zuo no die, overly radical activities, People’s Daily, pilot, protests, sit-in protest, stock market, Swire Pacific, tabloid, threatens staff, tourists, Uncategorized, violent actions, Weibo, with sack, zero tolerance |
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01/08/2019
- Fears are growing in the city that the military could be called in to quell unrest
- But the costs and complexities of doing so mean Beijing is highly unlikely to give the orders, observers say
PLA soldiers show their skills during a naval base open day in Hong Kong. The PLA has had a presence in Hong Kong since the city’s return to Chinese sovereignty. Photo: K.Y. Cheng
It is a prospect dreaded by many in Hong Kong, but debate is growing in mainland China about whether the central government should end weeks of upheaval in the city by sending in the People’s Liberation Army (PLA).
The PLA has had a presence in Hong Kong since the city’s return to Chinese sovereignty but – unlike in mainland China – memories of the military’s bloody suppression of pro-democracy students and activists in Beijing in 1989 are still strong in the city three decades on.
Still, images of protesters vandalising Beijing’s liaison office in downtown Hong Kong on Sunday have fanned nationalist anger across the mainland, prompting calls for PLA intervention.
Concerns only deepened on Wednesday when defence ministry spokesman Wu Qian commented on the recent clashes and protests in Hong Kong. Without suggesting any action or plans by the PLA, Wu made clear that the Garrison Law, which governs the operations of PLA troops in Hong Kong, already stipulates that the PLA is legally allowed to help the city maintain law and order at the request of Hong Kong’s government.
“We are closely following the developments in Hong Kong, especially the violent attack against the central government’s liaison office by radicals on July 21,” Wu said.
“Some behaviour of the radical protesters is challenging the authority of the central government and the bottom line of ‘one country, two systems’,” he warned, referring to the formula that grants Hong Kong a high degree of autonomy for 50 years. “This is intolerable.”
Both Article 14 and Article 18 of the Basic Law – the city’s mini-constitution – spell out how and under what circumstances the PLA troops in Hong Kong can be used.
While the legality is clear, analysts still believe that given the exorbitant political cost and complexities involved, using the military would remain an unlikely last resort.
Even Hu Xijin, editor-in-chief of China’s nationalist tabloid Global Times, has spoken out against the idea, citing its “huge political cost” and the “severe uncertainty” it might bring to the situation.
Crowds hold candles at a vigil in Victoria Park in Hong Kong in June to mark the 30th anniversary of the Tiananmen Square crackdown. Photo: James Wendlinger
“Once the PLA has taken charge of the situation in Hong Kong and quelled the riots, what’s next?” Hu said in a social media post on Monday.
Hu said there were no governance procedures in place that would allow the PLA to operate in Hong Kong and return things to normal. He also warned that any such action would be followed by international condemnation and a severe backlash among the Hong Kong public.
“The [PLA’s] Hong Kong garrison is the symbol of national sovereignty. It is not a fire brigade for law and order in Hong Kong,” he said.
Any move to use the Chinese troops will create a furore in the US Congress … They will re-examine the Hong Kong Policy Act very carefully Larry Wortzel, senior fellow at American Foreign Policy Council
The South China Morning Post reported last week that military force was not an option for mainland leaders working on a strategy to resolve the city’s biggest political crisis in decades.
And in June Major General Chen Daoxiang, commander of the Hong Kong garrison, assured David Helvey, US principal deputy assistant secretary of defence for Indo-Pacific security affairs, that Chinese troops would not interfere in the city’s affairs, according to Reuters.
The comments support analysts’ assessments that deploying the PLA is not a viable solution to Hong Kong’s crisis.
“Will the mobilisation of PLA troops further inflame the situation? There might be people who will resist or even revolt against the PLA, and that may lead to bloodshed,” said Lau Siu-kai, vice-chairman of the Chinese Association of Hong Kong and Macau Studies, a semi-official think tank.
The last time Beijing sent in troops to quell pro-democracy protests was during the Tiananmen Square crackdown on June 4, 1989 – bloodshed that has stained the PLA and the Communist Party to this day, despite decades of efforts to wipe it from public memory.
The last time Beijing sent in troops to quell pro-democracy protests was during the Tiananmen Square crackdown in 1989. Photo: Reuters
“Although they don’t like to admit it, they know they made a mistake in the way they used the PLA [in 1989],” said Larry Wortzel, a long-time PLA watcher, who witnessed the crackdown as an assistant military attache at the US embassy in Beijing 30 years ago.
“In subsequent years, when there were major demonstrations, they managed to handle them with either the People’s Armed Police [PAP] or the Public Security Bureau [PSB], or in some cases a combination of both,” said Wortzel, now a senior fellow in Asian security at the American Foreign Policy Council in Washington.
If the military was deployed [in Hong Kong], it would mean China was ready to shut its doors completely Chen Daoyin, a Shanghai-based political analyst
The PAP is a 1.5 million-strong paramilitary police force tasked with maintaining domestic security and order, while the PSB is the country’s police force.
The June 4 crackdown is still widely remembered in Hong Kong, where tens of thousands gather every year on its anniversary for a candlelight vigil in the heart of the city.
“The activities in Hong Kong and the Chinese Communist Party’s conduct there have really had a profound impact on thinking in Taiwan. It has killed any chance with any political party of [supporting] the one country, two systems,” Wortzel said.
Chinese military can be deployed at Hong Kong’s request to contain protests, Beijing says
“The last thing President Xi Jinping and the Politburo Standing Committee would want to do, if they can avoid it, is to use the PLA [in Hong Kong].”
The situation in Hong Kong is also being closely watched in the West, with many international firms basing regional headquarters in the Asian financial hub, thanks to its capitalist system and rule of law.
Deploying the PLA to Hong Kong would certainly spark an international outcry and draw huge pressure from Western countries, said Liang Yunxiang, an international affairs expert at Peking University.
“Britain, of course, would have the harshest criticism since it governed Hong Kong for a long time and signed treaties with China to ensure Beijing would keep its commitment to one country, two systems,” Liang said.
In the United States, the repercussions could go beyond verbal condemnation to a shift in policy that might fundamentally change Hong Kong’s status as an international financial centre and prompt an exodus of businesses, according to Wortzel.
“Any move to use the Chinese troops will create a furore in the US Congress … They will re-examine the Hong Kong Policy Act very carefully,” he said, referring to the bill passed in 1992 that allows Hong Kong to be treated as a non-sovereign entity distinct from mainland China on trade and economic matters.
Hong Kong head blasts violence, amid further extradition bill unrest
“They will simply treat Hong Kong like another Chinese city, which affects export controls and how the financial industry operates.”
Just last month, members of Congress reintroduced the bipartisan Hong Kong Human Rights and Democracy Act. If the legislation is passed, the US could revoke Hong Kong’s special status under American law if Beijing fails to ensure the city has “sufficient autonomy”.
The crisis comes as Beijing’s ties with Washington are already strained by a year-long trade war that has spilled into other areas of bilateral relations.
PLA troops go through their paces for the public at their Hong Kong barracks during an open day. Photo: Edward Wong
There is also mounting international pressure on China over issues such as its mass internment and political indoctrination of an estimated million or more members of Muslim minorities in Xinjiang, despite the Chinese government’s repeated denials of ill-treatment of the inmates and attempts to defend its policies.
Chen Daoyin, a Shanghai-based political analyst, said the increasing scrutiny China faced from Western countries – whether in the form of punitive tariffs or restrictions on technology – made it all the more important for China to keep Hong Kong as an open channel to connect with the world.
“If the military was deployed [in Hong Kong], it would mean China was ready to shut its doors completely,” Chen said.
Lau, from the Chinese Association of Hong Kong and Macau Studies, said the PLA should only be deployed as a last resort.
Two calls per second ‘jammed emergency lines’ during Hong Kong violence
“It would be a huge blow to the principle of ‘letting Hong Kong people govern Hong Kong with a high degree of autonomy’, since it will prove that Hong Kong people are not up to the task of governing themselves,” he said.
Hu, from Global Times, said the PLA troops could be used only if the authorities lost control of the city or an armed rebellion broke out.
Short of that, he said, the central government should let the chaos in Hong Kong run its course and wait for the public mood to flip.
This strategy of sitting it out hinges on the city’s police force holding the line and stopping Hong Kong’s slide into total anarchy.
Wortzel also warned that there were lines protesters should not cross – or risk provoking the use of military force.
“For instance, to this point, demonstrators have not gone up against the PLA garrison or any of its outposts. If they did that, I think it’s possible – actually it is very likely – that there will be a limited mobilised response [to defend the facilities],” he said.
While most analysts said the chance of Beijing resorting to military force was slim, the very idea – ludicrous to even discuss three months ago – has become a popular topic on social media on the mainland, where the discussion is not censored and many commenters support it.
The official media have been careful not to touch the subject but they too have stepped up rhetoric against the protests in Hong Kong.
In a rare move, state-run China Central Television has run commentaries and reports about protests in Hong Kong during its main evening news for five days in a row.
Only the most politically important issues receive such unusual treatment.
Source: SCMP
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12/06/2019
- Radar expert Liu Yongtan says surface wave system could track ships and planes from hundreds of kilometres away and is protected from anti-radiation missiles
Stealth aircraft like the US F-35 are less well protected against high-frequency surface wave radars. Photo: AP
China has developed a radar system that could detect stealth fighters from a long distance, its creator has told state media.
Liu Yongtan, a member of the Chinese Academy of Sciences, told Naval and Merchant Ships that the new high-frequency surface wave radar (HFSWR) was also masked from anti-radiation missiles which can detect and destroy radio waves from other early warning systems.
The interview with the monthly magazine, which is published by the China Shipbuilding Engineering Academy, was reprinted by state-owned tabloid Global Times on Monday.
Liu, an 83-year-old who has dedicated his life to studying radar systems, said the new radar features “high-frequency electromagnetic waves that have long wavelengths and wide beams”.
Unlike microwave or skywave signals, surface waves travel along the spherical surface of the earth.
“A land-based version of the system can detect naval and aerial hostile objects from hundreds of kilometres away, which helps expand the range of China’s maritime early warning and defence systems,” Liu said.
He also said the long wavelength could help detect stealth aircraft, which use special protective materials and designs to make them “invisible” to microwave radars, but have no such protection against high-frequency surface waves.
Chinese navy’s new ‘compact’ radar will allow it to keep watch over an area the size of India
Another advantage of the maritime radar system is what Global Times described as “immunity” to attack from anti-radiation missiles, which track and destroy the origin of the electromagnetic waves.
Liu said that anti-radiation missiles would need huge antennas to track high-frequency surface waves because their beams are too wide for the antennas currently in use to track.
Plenty of practical challenges – such as signal loss and noise interference – need to be overcome to use high-frequency surface waves in radar.
Liu Yongtan was given China’s top scientific honour for his work on the radar. Photo: Weibo
However, Shi Lao, a Shanghai-based military commentator, said Liu’s team must have overcome those challenges.
Shi said he believed that as Liu’s technology developed it could be used as a low-cost coastal monitoring system that could protect the coastline within a range of 400km (250 miles).
Japan boosts island radar surveillance to catch Chinese, North Korean ships
The technology can also be used in conjunction with skywave radar systems, which usually have a longer monitoring range of 1,000km (621 miles).
“HFSWR could work 24 hours in all weathers, which would be much cheaper than operating early warning aircraft,” Shi said.
“They can be deployed relatively quickly with high mobility if they are mounted on vehicles, and may be loaded onto warships in the future.”
State broadcaster CCTV has previously reported that China has built a high-frequency surface wave radar test centre in Weihai, on China’s east coast in Shandong province.
In January
, China’s highest award for scientists which includes prize money of 8 million yuan (US$1.2 million), for his work on the radar system.
Source: SCMP
Posted in antennas, anti-radiation missiles, CCTV, China Shipbuilding Engineering Academy, China’s maritime early warning and defence systems, Chinese Academy of Sciences, Chinese navy, creator, electromagnetic waves, Global Times, high-frequency radar system, high-frequency surface wave radar (HFSWR), India alert, invisible, Japan, long distance, microwave radars, Naval and Merchant Ships, North Korean ships, shandong province, spot, State Pre-eminent Science and Technology Award, stealth aircraft, surface wave system, Uncategorized, Weihai |
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29/05/2019
- China’s housing market showing signs of bubble similar to that seen in Japan in 1980s, says Asian Development Bank Institute dean and CEO Naoyuki Yoshino
- China’s loose policy following 2008 global financial crisis laid foundations for current housing bubble, with US-China trade war adding to concerns
The average price of a home in Beijing has soared from around 380 yuan (US$55) per square feet in the early 2000s to the current level of well above 5,610 yuan (US$813) per square foot, according to property data provider creprice.cn. Photo: Bloomberg
China must exercise extreme caution in handling its housing sector because it is showing signs similar to those witnessed during Japan’s bubble period of the 1980s that contributed to the collapse of Japanese asset prices and its subsequent “lost decades” of weak economic growth and deflation, a Japanese financial system expert warned.
The parallels between China’s current landscape and Japan’s three decades ago are readily apparent, stemming from a loose monetary policy that laid the foundation for the expansion of a housing bubble, said Naoyuki Yoshino, dean and CEO of the Asian Development Bank Institute.
China flooded its economy with credit in response to the 2008 global financial crisis, fuelling rapid growth in mortgages, real estate borrowings and investments over the past decade.
In the same vein, the Japanese government’s relaxed monetary policy in the 1980s triggered an economic bubble that eventually burst and sank the economy into a recession that
with the Bank of Japan continuing to still keep interest rates at or below zero per cent to this day in an attempt to spur inflation.
The Japanese government’s relaxed monetary policy in the 1980s triggered an economic bubble that eventually burst and sank the economy into a recession that lasted almost 25 years. Photo: Bloomberg
Japan’s experience could serve as a lesson on how to avoid a housing market collapse that would be especially detrimental to China’s financial sector and real economy, according to Yoshino.
“I’m very much concerned that if land prices keep on rising and if the population starts to shrink along with aggregate demand, then China will experience a similar situation to that of Japan,” Yoshino said.
There are already several strong signs of a housing bubble in China, according to Yoshino, firstly the astronomical surge in property prices in recent years.
I’m very much concerned that if land prices keep on rising and if the population starts to shrink along with aggregate demand, then China will experience a similar situation to that of Japan Naoyuki Yoshino
Home ownership is one of the few ways for Chinese families to generate wealth because of limited investment opportunities. The average price of a home in Beijing has soared from around 4,000 yuan (US$578) per square metre, or 380 yuan (US$55) per square feet, in the early 2000s to the current level of well above 60,000 yuan (US$8,677) per square metre, or 5,610 yuan (US$813) per square foot, according to property data provider creprice.cn.
The increase has also lifted the housing price to income ratio sharply from 5.6 in 1996 to 7.6 in 2013, well above the Japanese rate of 3.0 at its peak in 1988. The price to income ratio is the basic affordability measure for housing.
According to the Global Times, a reasonable home price should be three to six times the median household income. That means a family with an average income can buy a house with three to six years’ annual income. The house price to income ratio in China is above 50 in the first-tier cities and 30 to 40 in the third- and fourth-tier cities, the newspaper said in October. There are four levels of cities in China, defined by a number of factors including gross domestic product (GDP) and population, with Beijing, Shanghai and Shenzhen considered tier-one cities.
Another worrying sign, according to Yoshino, is that China’s financial sector has lent more heavily to the real estate sector than did Japanese banks during their bubble period.
Thirdly, the ratio of Chinese housing loans to the nation’s GDP has consistently been higher than Japan’s by about three times more.
Ever since US President Donald Trump started imposing tariffs on Chinese imports in July, worries have been mounting that China’s property bubble and its record debt level would make the economy vulnerable to the impact of rising trade tensions, leading to a sharper-than-expected economic slowdown.
Despite a government crackdown on debt and risky lending over the last several years, housing prices and bank lending to the sector have continued to rise, pushing homes beyond what the vast majority of people can afford, as well as putting many property developers deeply into debt.
The Chinese Academy of Social Sciences, a top government think tank, said in a report last week that the growth in housing prices in China’s bigger cities, caused by a relatively short supply of new homes, is likely to push up costs across the country.
“The government should closely monitor these cities to avoid overheating,” said Wang Yeqiang, a researcher at the Chinese Academy of Social Sciences who co-authored the report.
Property developers have begun a debt-fuelled land-buying spree just as urban housing demand is entering a long-running structural decline, said Julian Evans-Pritchard, senior China economist at Capital Economics. The potential supply of property that could be built on developers’ land reserves jumped last year to a record high, meaning the risk of a glut of new housing is real, Evans-Pritchard added, if developers were to convert all their land reserves into housing tracts.
“Since real estate drives around a fifth of GDP, a sharp downturn in this sector would be contagious, resulting in a jump in defaults across a wide swathe of the economy that could quickly erode bank capital buffers,” he warned.
China’s corporate debt stood at 155 per cent of GDP in the second quarter of 2018, much higher than other major economies, according to data from the Organisation for Economic Cooperation and Development. In comparison, Japan’s corporate debt level is 100 per cent of GDP and is 74 per cent in the US. China’s corporate debt includes issuances by its
vehicles which by extension is mostly credit with an implicit guarantee from the central government.
Since real estate drives around a fifth of GDP, a sharp downturn in this sector would be contagious, resulting in a jump in defaults across a wide swathe of the economy that could quickly erode bank capital buffersJulian Evans-Pritchard
China’s imbalance between housing supply and demand may worsen because it faces a similar economic transition that is already well underway in Japan – a
and
that led to Japan’s long-term deflation problem, said Yoshino, who is also the chief adviser to the Japan Financial Services Agency’s Financial Research Centre.
Even if rising housing demand due to urbanisation were to push China’s housing prices higher over the near term, the country faces risks from an oversupply of housing in the longer term due to its increasingly unbalanced demographic structure, he said.
The government has proposed that China’s retirement ages of 45 to 50 years for females and 55 to 60 years for males introduced in the 1980s be gradually increased to 65 years for both by 2045 due to a rapidly ageing population.
The rising population of retirees will consume fewer goods and services compared to younger families with children, and in turn, could dampen business investment given lower expected rates of return.
At the same time, more retirees means a bigger burden on the younger generation of taxpayers, which would reduce their wealth and change patterns of consumption. This is especially worrying on the back of China’s high debt level and pension funding gap, similar to the situation in Japan, Yoshino said.
In Japan, benefits from government pension schemes account for an increasing share of the country’s accumulated debt as spending on social protection programmes now represents more than a third of the government’s total budget.
China’s national pension fund is forecast to peak at 6.99 trillion yuan (US$1 trillion) in 2027 before it gradually runs out by 2035, according to the Chinese Academy of Social Sciences. Photo: AFP
The strain is also evident in China with the
forecast to peak at 6.99 trillion yuan (US$1 trillion) in 2027 before it gradually runs out by 2035, according to the Chinese Academy of Social Sciences, forcing the government to start to transfer assets from state-owned companies to fill the funding gap.
Against the broader economic slowdown, compounded by the trade war with the US, policymakers are also expected to carve out a highly expansionary fiscal budget for this year, with the broad deficit surging to 6.6 per cent of China’s GDP, up from 4.7 per cent last year, according to Larry Hu, head of China economics at Macquarie Capital.
Alicia Garcia Herrero, Asia-Pacific chief economist at Natixis, noted that the US criticisms of China’s unfair trade practises and currency manipulation were reminiscent of the US-Japan disputes in the 1980s and 1990s.
Because Japan was politically and economically dependent on the US at that time, it inevitably implemented economic policies to reduce its current account surplus. Subsequently, Japan suffered from the bursting of its asset price bubble, which led to deflation and the lost decades.
However, Herrero said that the modern China is less dependent on the US and so is in a better position to resist pressure to adjust its economic policies to create demand for American products.
Wang Yang, one of the seven members of China’s elite Politburo Standing Committee, said the US-China trade war could slash one percentage point off Beijing’s economic growth this year. Last year, growth expanded at its slowest pace since 1990, while corporate bond defaults hit a record high and banks’ non-performing loan ratio hit a 10-year high.
Source: SCMP
Posted in Ageing population, Asian Development Bank Institute, ‘lost decades’, Bank of Japan, Beijing, Central government, China alert, China’s housing market, Chinese Academy of Social Sciences, Chinese imports, demographic structure, Financial Research Centre, financial sector, Financial Services Agency, Global Times, government think tank, gross domestic product (GDP), Home, housing loans, implicit guarantee, Japanese banks, Japanese housing bubble, national pension fund, Organisation for Economic Cooperation and Development (OECD), Population, real economy, real estate sector, Shanghai, Shenzhen, showing signs, similar to, Supply and demand, tariffs, Uncategorized, urbanisation, US President Donald Trump |
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22/02/2019
BEIJING (Reuters) – Saudi Crown Prince Mohammed bin Salman cemented a $10 billion (7.7 billion pounds) deal for a refining and petrochemical complex in China on Friday, meeting Chinese President Xi Jinping who urged joint efforts to counter extremism and terror.
The Saudi delegation, including top executives from state-owned oil company Saudi Aramco, arrived on Thursday on an Asia tour that has already seen the kingdom pledge investment of $20 billion in Pakistan and seek to make additional investments in India’s refining industry.
Saudi Arabia signed 35 economic cooperation agreements with China worth a total of $28 billion at a joint investment forum during the visit, Saudi state news agency SPA said.
“China is a good friend and partner to Saudi Arabia,” President Xi Jinping told the crown prince in front of reporters.
“The special nature of our bilateral relationship reflects the efforts you have made,” added Xi, who has made stepping up China’s presence in the Middle East a key foreign policy objective, despite its traditional low-key role there.
The crown prince said Saudi Arabia’s relations with China dated back “a very long time in the past”.
“In the hundreds, even thousands, of years, the interactions between the sides have been friendly. Over such a long period of exchanges with China, we have never experienced any problems with China,” he said.
Crown Prince Mohammed, who has come under fire in the West following the murder of Saudi journalist Jamal Khashoggi at the kingdom’s Istanbul consulate in October, said Saudi Arabia saw great opportunities with China.
“The Silk Road initiative and China’s strategic orientation are very much in line with the kingdom’s Vision 2030,” he said according to SPA, referring to Saudi Arabia’s sweeping economic reform programme.
Trade between the countries increased by 32 percent last year, he said.
China has had to step carefully in relations with Riyadh, since Beijing also has close ties with Saudi Arabia’s regional foe, Iran.
China is also wary of criticism from Muslim countries about its camps in the heavily Muslim far western region of Xinjiang, which the government says are for de-radicalisation purposes and rights groups call internment camps.
Xi told the crown prince the two countries must strengthen international cooperation on de-radicalisation to “prevent the infiltration and spread of extremist thinking”, Chinese state television said.
Saudi Arabia respected and supported China’s right to protect its own security and take counter-terror and de-radicalisation steps, the crown prince told Xi, according to the same report, and was willing to increase cooperation.
Meeting the crown prince earlier on Friday, Chinese Vice Premier Han Zheng said the two countries should enhance exchanges on their experiences in de-radicalisation, China’s official Xinhua news agency said in a separate report.
Chinese state media made no direct mention of Xinjiang in their stories on the crown prince’s meetings.
DEALS SIGNED
Aramco agreed to form a joint venture with Chinese defence conglomerate Norinco to develop a refining and petrochemical complex in the northeastern Chinese city of Panjin, saying the project was worth more than $10 billion.
U.S., China sketch outlines for trade deal
The partners would form a company called Huajin Aramco Petrochemical Co as part of a project that would include a 300,000-barrels per day (bpd) refinery with a 1.5-million-metric tonnes per year ethylene cracker, Aramco said.
Aramco will supply up to 70 percent of the crude feedstock for the complex, which is expected to start operations in 2024.
The investments could help Saudi Arabia regain its place as the top oil exporter to China, a position Russia has held for the last three years. Saudi Aramco is set to boost market share by signing supply deals with non-state Chinese refiners.
Aramco also signed an agreement to buy a 9 percent stake in Zhejiang Petrochemical, Saudi state news agency SPA said. This formalised a previously announced plan to gain a stake in a 400,000-bpd refinery and petrochemicals complex in Zhoushan, south of Shanghai.
China sees “enormous potential” in Saudi Arabia’s economy and wants more high-tech cooperation, State Councillor Wang Yi, the Chinese government’s top diplomat, said on Thursday.
But China was not seeking to play politics in the Middle East, the widely read state-run tabloid, the Global Times, said in an editorial.
“China won’t be a geopolitical player in the Middle East. It has no enemies and can cooperate with all countries in the region,” said the paper, published by the ruling Communist Party’s official People’s Daily.
“China’s increasing influence in the Middle East comes from pure friendly cooperation. Such a partnership will be welcomed by more countries in the Middle East.”
Source: Reuters
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18/02/2019
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- Opinion piece in major state media outlets is seen to be part of Beijing’s efforts to reassure its citizens that the tariff war with the United States will soon be over
- A Chinese delegation led by Vice-Premier Liu He is expected to leave on Tuesday for the American capital after last week’s trade talks in Beijing produced ‘progress’
Chinese President Xi Jinping urged for a “mutually beneficial” trade deal in this week’s talks when he met US trade representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin in Beijing on Friday, according to Xinhua. Photo: Xinhua
A tweet by US President Donald Trump on the ongoing trade war is a “positive” signal, brightening prospects of a deal from this week’s talks in Washington, according to an opinion piece published by China’s major state media outlets on Monday.
Monday’s opinion piece was published the day before a Chinese delegation led by Vice-Premier Liu He is
expected to leave for talks in Washington.
In the tweet on Sunday, Trump said: “Important meetings and calls on China trade deal, and more, today with my staff. Big progress being made on soooo many different fronts! Our country has such fantastic potential for future growth and greatness on an even higher level!”
The opinion piece, which was published by the official Xinhua news agency, the People’s Daily and the Global Times under the pseudonym Niu Tanqin, is seen to be part of Beijing’s efforts to reassure its citizens that the trade war with the United States will soon be over.
It did contrast previous columns on Trump by the same author, who in March last year argued that China dislikes the American president for his “insatiable demands, greediness and lack of trust worthiness”.
Last week’s trade talks in Beijing produced “progress” ahead of the March 1 deadline, which could see tariffs on US$200 billion worth of Chinese products increased from 10 per cent to 25 per cent if the world’s two largest economies fail to reach a deal.
The outcome of the talks in Washington, which are likely to be the last before March 1, will largely decide whether China and the United States can reach a pact, likely in the form of a memorandum of understanding, to suspend the tariff battle that has been roiling global markets and clouding growth prospects since last year.
According to the opinion piece, Trump’s use of “soooo” instead of “so” indicated that the US president was excited when he heard reports from his trade envoys following the talks in Beijing, which Chinese President Xi Jinping attend on Friday.
“The US side is attaching great importance [to the trade talks]. Although Trump is on vacation, he listened to relevant reports and he definitely will make specific instructions,” it added.
Trump has been upbeat about the prospects of reaching a trade deal with China, and said on Friday at the White House: “It’s going extremely well.”
Chinese President Xi urged for a “mutually beneficial” trade deal in this week’s talks when he met US trade representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin in Beijing on Friday, according to Xinhua.
Stocks in China and Hong Kong surged on Monday, partly bolstered by the increased likelihood of a trade deal between China and the United States.
Monday’s opinion piece fits into the latest official line that an agreement is very likely to end the tariff war after the Global Times said over the weekend that the bilateral trade talks are “sprinting” towards a positive end.
Donald Trump’s demands ‘good for China’, says economist Jin Keyu
Meanwhile, reports in China suggest differences between Beijing and Washington still remain over forced technology transfer, intellectual property rights, cyber theft as well as a verification system to ensure China keeps its promises.
Xi told the US trade envoys that China is willing to “cooperate” but “cooperation has principals”, a statement showing that Beijing will not entertain US demands if it finds such demands violate China’s principals.
A White House statement on Friday said that “much work remains”, showing gaps still exist.
Source: SCMP
Posted in Beijing, China alert, Global Times, greediness, Hong Kong, insatiable demands, lack of trust worthiness, Memorandum of understanding, President Donald Trump, President Xi, Robert Lighthizer, Steven Mnuchin, talks, tariff war, trade war, tweet, Uncategorized, US, Vice-Premier Liu He, Washington, White House |
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