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.
Image copyright AFPImage caption Beijing’s proposed security law has sparked protests in Hong Kong
Seven former UK foreign secretaries have urged Boris Johnson to form a global alliance to coordinate the response to the China-Hong Kong crisis.
China is facing mounting criticism over a planned security law for Hong Kong which would make it a crime to undermine Beijing’s authority.
Foreign Secretary Dominic Raab said the UK would not turn a blind eye.
Hong Kong was handed back to China from British control in 1997 but under a unique agreement.
The former British colony enjoys some freedoms not seen in mainland China – and these are set out in a mini-constitution called the Basic Law.
But there are fears the proposed law, which has sparked a mass of anti-mainland protests in Hong Kong, could compromise some of the freedoms guaranteed by the Basic Law.
In their letter to the prime minister, the cross-party group of former cabinet ministers says the UK government must be seen to lead the international response, as many countries take their cue from Britain over its former colony.
Jeremy Hunt, David Miliband, Jack Straw, William Hague, Malcolm Rifkind, David Owen and Margaret Beckett all expressed their concern at what they call China’s “flagrant breach” of Sino-British agreements by imposing tough national security laws on Hong Kong.
They urged Mr Johnson to set up an “international contact group” of allies to coordinate any joint action, similar to that set up in 1994 to try to end the conflict in the former Yugoslavia.
A Downing Street spokesman insisted the government was already playing a leading role with international partners in urging China to think again.
Mr Raab said the new security legislation “very clearly violates” the autonomy that is guaranteed under Chinese law as well as that in the 1997 agreement.
He confirmed the UK will allow those who hold British National (Overseas) passports to come to the UK and apply to study and work for an extendable 12-month period.
This will in turn “provide a path to citizenship”, he told the BBC’s Andrew Marr Show on Sunday.
Mr Raab said up to three million people registered as a British national (overseas) in Hong Kong could be eligible for UK citizenship if China presses ahead with the law.
Meanwhile, the chairman of Commons foreign affairs committee, Tom Tugendhat, said the government must realise that China has a “very, very authoritarian system of government” and should rethink the partnership between the two.
China is facing mounting criticism over a planned security law for Hong Kong which would make it a crime to undermine Beijing’s authority in the territory.
The UK and US said at a private session of the UN Security Council that the law would curtail the city’s freedoms.
China, which blocked a formal meeting, warned them to “stop interfering”.
Hong Kong’s autonomy is guaranteed by the 1997 agreement under which it was returned to China from the UK.
It enjoys some freedoms – of the press and association – unseen in mainland China.
But there are fears the proposed law – which has sparked a wave of anti-mainland protests – could end Hong Kong’s unique status.
There are 350,000 BNO passport holders in Hong Kong who currently have the right to visit the UK for up to six months without a visa.
On Friday, the UK Home Office confirmed the new rights could be given to up to three million people with BNO status – as long as they applied for and were granted a passport.
China says all BNO passport holders are Chinese nationals, and if the UK changes this practice, it would violate international law.
Australia, Canada and the EU have also criticised the security law and its implications for Hong Kong.
Taiwan’s parliament has backed a plan to offer sanctuary to people who want to flee Hong Kong, but China – which considers Taiwan to be part of its own territory – has warned the island not to get involved.
On Friday, Chinese Foreign Ministry spokesperson Zhao Lijian urged other countries to stop interfering in the matter.
“We will take necessary measures to resolutely counter the wrong acts of external forces interfering in Hong Kong affairs”, he said.
What might the US do?
On Wednesday, US Secretary of State Mike Pompeo told Congress that Hong Kong no longer merited special treatment under US law, potentially paving the way for it to be stripped of trading privileges such as lower tariffs than mainland China.
He is expected to make an announcement later on Friday.
The EU has warned that imposing sanctions would not solve the crisis.
“Our relationship with China is based on mutual respect and trust… but this decision calls this into question and I think that we have to raise the issue in our continued dialogue with China”, EU High Representative for Foreign Affairs Josep Borrell said after talks with foreign ministers on Friday.
Media caption Police arrested dozens of people in Causeway Bay on Wednesday
Hong Kong’s justice secretary Teresa Cheng told the BBC’s Chinese service that any threat of sanctions was unacceptable.
“Are the sanctions being imposed with a view to coerce another state to change their policy…? Any such sanctions are not going to benefit anyone”.
China’s parliament has backed the security legislation, which would make it a crime to undermine Beijing’s authority in Hong Kong.
The resolution – which now passes to China’s senior leadership – could also see China installing its own security agencies in the region for the first time.
Full details about exactly what behaviour will be outlawed under the new security law are not yet clear. It is due to be enacted before September.
Image copyright AFPImage caption President Xi Jinping and other senior figures applauded when the security law was passed
However, it is expected to criminalise:
secession – breaking away from China
subversion – undermining the power or authority of the central government
terrorism – using violence or intimidation against people
activities by foreign forces that interfere in Hong Kong
Experts say they fear the law could see people punished for criticising Beijing – as happens in mainland China. For example, Nobel Laureate Liu Xiaobo was jailed for 11 years for subversion after he co-authored a document calling for political reform.
China’s foreign ministry in Hong Kong described US criticism of the new draft law as “utterly imperious, unreasonable and shameless”.
Chinese groups calling for more ‘fighting spirit’ are getting the upper hand on those who favour calm and cooperation, government adviser says
From Hong Kong to Covid-19, trade to the South China Sea, Beijing and Washington are clashing on a growing number of fronts and in an increasingly aggressive way
Efforts to promote dialogue and cooperation between the US and China are failing, observers say. Photo: AFP
Moderates who favour dialogue and cooperation as a way to resolve China’s disputes with the United States are losing ground to hardline groups bent on taking the fight to Washington, according to political insiders and observers.
“There are two camps in China,” said a former state official who now serves as a government adviser and asked not to be named.
“One is stressing the combat spirit, the other is trying to relieve tensions. And the former has the upper hand.”
Relations between China and the US are under intense pressure. After Beijing moved to introduce a national security law for Hong Kong, US President Donald Trump said on Friday that Washington would begin eliminating the special policy exemptions it grants the city, as it no longer considers it autonomous from mainland China.
Beijing’s decision to enact a national security law for Hong Kong was met with anger from the US and other Western countries. Photo: Sam Tsang
The two nations have also clashed over trade, Xinjiang, Taiwan and the South China Sea, with the US passing several acts denouncing Beijing and sanctioning Chinese officials.
China has also experienced turbulence in its relations with other countries, including Australia and members of the European Union, mostly related to the Covid-19 pandemic
and Beijing’s efforts to position itself as a leader in the fight against the disease with its policy of “mask diplomacy”.
After Canberra appealed for an independent investigation to be carried out to determine the origins of the coronavirus, Beijing responded by imposing tariffs on imports of Australian barley, showing it is prepared to do more than just trade insults and accusations with its adversaries.
Pang Zhongying, a professor of international relations at Ocean University of China in Qingdao, said there was a worrying trend in China’s relations with other nations.
“We need political and diplomatic means to resolve the challenges we are facing, but … diplomatic methods have become undiplomatic,” he said.
“There are some who believe that problems can be solved through tough gestures, but this will never work. Without diplomacy, problems become confrontations.”
said during his annual press conference on the sidelines of the National People’s Congress last weekend that China and the United States must work together to prevent a new Cold War.
His words were echoed by Chinese Premier Li Keqiang, who said during a press conference after the closure of the legislative session on Thursday that the many challenges facing the China-US relations could only be resolved through cooperation.
However, the government adviser said there was often quite a chasm between what China’s leaders said and what happened in reality.
“Even though we say we do not want a Cold War, what is happening at the working level seems to be different.” he said. “The implementation of policies is not properly coordinated and often chaotic.”
Tensions between China and the US have been in a poor state since the start of a trade war almost two years ago. After multiple rounds of negotiations, the sides in January signed a phase one deal, but the positivity that created was short-lived.
In February, Beijing expelled three reporters from The Wall Street Journal over an article it deemed racist, while Washington has ramped up its military activity in the South China Sea and Taiwan Strait, and threatened to revoke the visas of Chinese students studying science and technology in the US over concerns they might be engaged in espionage.
Beijing has also used its state media and army of “Wolf Warrior” diplomats to promote its narrative, though many Chinese scholars and foreign policy advisers have said the latter’s nationalistic fervour has done more harm than good and appealed to Beijing to adopt a more conciliatory tone.
However, Hu Xijin, editor-in-chief of Chinese tabloid Global Times, said China had no option but to stare down the US, which regarded the world’s most populous nation as its main rival.
“Being contained by the US is too high a price for China to pay,” he said. “I think the best thing people can do is forget the old days of China-US ties”.
Jin Canrong, a professor of international relations at Renmin University in Beijing, wrote in a recent newspaper article that Beijing’s actions – notably enacting a national security law for Hong Kong – showed it was uncompromising and ready to stand its ground against the US.
Wu Xinbo, dean of international studies at Fudan University in Shanghai, agreed, saying relations between the two countries were likely to worsen in the run-up to the US presidential election in November and that Beijing should be prepared for a fight.
But Adam Ni, director of China Policy Centre, a think tank in Canberra, said the issue was not that the moderate camp had been sidelined, but rather Beijing’s perception of the US had changed.
“Beijing has woken up to the idea that America’s tough policy on China will continue and it is expecting an escalation of the tensions,” he said.
“The centre of gravity in terms of Beijing’s perception of the US has shifted, in the same way the US perception of China has shifted towards a more negative image”.
Beijing was simply responding in kind to the hardline, assertive manner of the US, he said.
Image copyright GETTY IMAGESImage caption Around 300,000 in Hong Kong hold a British National (Overseas) passport
The UK has said it is considering more rights for holders of a special passport issued to some people in Hong Kong.
The territory, which used to be a British colony, was handed back to China in 1997. Anyone born before then is eligible to apply for a British National (Overseas) passport, known as a BNO.
If China implements a controversial proposed security law, people holding the BNO, could get a “path to citizenship”, the UK said.
What is the BNO and who has one?
The BNO passport is essentially a travel document that does not carry citizenship rights with it – although you are entitled to some consular assistance outside of Hong Kong and China with it.
It was issued to people in Hong Kong by the UK before Hong Kong was handed over to China.
Around 300,000 people currently hold a BNO passport, allowing them to visit the UK visa-free for six months. An estimated 2.9 million people are eligible for a BNO passport, said the British Consulate General in Hong Kong.
Though it gives the passport holder the right to remain in the UK for up to six months, it doesn’t automatically allow them to reside or work there. They also aren’t allowed to access public funds, including things like government benefits.
BNO holders cannot pass this status on to their children.
What is the UK proposing – and why?
China on Thursday formally approved a plan to impose controversial national security legislation in Hong Kong. It could go into effect as early as the end of June.
Hong Kong was handed back to China, on a number of conditions. These include the region’s high level of autonomy and maintaining certain rights like freedom of speech that do not exist in mainland China.
But this new plan, if put into law, would make it a crime to undermine Beijing’s authority in Hong Kong, and many are concerned it could end Hong Kong’s unique status.
The move triggered a wave of criticism around the world, with many – including Chris Patten, the last governor of Hong Kong – urging the UK to stand up for the territory.
Image caption Under current rules, BNO holders are allowed to stay for six months
Later on Thursday, UK Foreign Secretary Dominic Raab said the country would move to scrap the six-month stay limit for BNO holders if China goes on to officially implement the law.
Mr Raab said that BNO passport holders would be allowed to “apply to work and study for extendable periods of 12 months and that will itself provide a pathway to future citizenship”.
What difference could it make?
As a way to help people in Hong Kong who would rather not stay there if the new security laws are implemented, it might prove more symbolic.
For starters only a small percentage of people in Hong Kong currently have a BNO.
But also, the people who the security laws are aimed at – the young anti-mainland protesters who have been getting into violent confrontations with police for months – are not likely to be eligible for the BNO because of their age.
Additionally, though the BNO gives the passport holder the right to visit the UK for up to a year potentially, it’s not clear what other benefits the extension might bring, or if the UK would make it any easier administratively for those already in the country to apply for work or study.
On social media, some Hong Kongers dismissed it as a gesture that amounted to little more than a 12-month tourist visa.
Effectively, it means that those who come to stay in the UK for a year, and who have the funds to be able to extend this enough, could eventually be eligible to apply for citizenship.
It cuts out some of the administrative hoops BNO holders would have had to jump through before this move if they wanted this path.
How has China reacted?
China has firmly opposed the move by the UK, saying it is a violation of the handover agreement that stipulates BNO passport holders do not enjoy UK residency.
China has repeatedly warned Britain to stay out of its affairs in Hong Kong.
The Chinese ambassador to the UK Liu Xiaoming had previously accused some British politicians of viewing Hong Kong “as part of the British empire”.
LONDON (Reuters) – China has betrayed the people of Hong Kong so the West should stop kowtowing to Beijing for an illusory great pot of gold, said Chris Patten, the last governor of the former British colony.
Beijing is set to impose new national security legislation on Hong Kong after a sustained campaign of pro-democracy protests last year in the city, which enjoys many freedoms not allowed on mainland China.
“The Hong Kong people have been betrayed by China,” Patten was quoted as saying by The Times newspaper. Britain has a “moral, economic and legal” duty to stand up for Hong Kong, he said.
Patten watched as the British flag was lowered over Hong Kong when the colony was handed back to China in 1997 after more than 150 years of British rule.
Hong Kong’s autonomy was guaranteed under the “one country, two systems” agreement principle enshrined in the 1984 Sino-British Joint Declaration signed by then Chinese Premier Zhao Ziyang and British Prime Minister Margaret Thatcher.
But China’s plans to impose national security laws on Hong Kong risk destroying the Declaration, Patten said. The United States has branded the laws a “death knell” for the city’s autonomy.
“What we are seeing is a new Chinese dictatorship,” Patten said. “The British government should make it clear that what we are seeing is a complete destruction of the Joint Declaration.”
Hong Kong leader Carrie Lam said her government will “fully cooperate” with the Chinese parliament to safeguard national security, which she said would not affect rights, freedoms or judicial independence.
Patten said the West should stop chasing the illusory promise of Chinese gold.
“We should stop being fooled that somehow at the end of the all the kowtowing there’s this great pot of gold waiting for us. It’s always been an illusion,” Patten said.
“We keep on kidding ourselves that unless we do everything that China wants we will somehow miss out on great trading opportunities. It’s drivel.”
The British government did not immediately comment on Saturday.
Prime Minister Boris Johnson’s spokesman said on Friday the government was monitoring the situation and as a party to the Joint Declaration the UK was committed to the upholding Hong Kong’s autonomy and respecting the one country, two systems model.
The rhetoric towards the self-ruled island has hardened in Premier Li Keqiang’s annual work report
Beijing regards Taiwan as one of its core national interests and says it ‘resolutely opposes’ any separatist activity
Beijing regards reunification with Taiwan as one of its core interests. Photo: EPA-EFE
Beijing has hardened its rhetoric towards Taiwan, removing references to “peaceful reunification”, in the government’s annual work report.
Observers said the change reflected the stronger stance Beijing would adopt in tackling the Taiwan issue, which it regards as one of its key national interests.
The past six work reports since President Xi Jinping took power in 2013 stressed peaceful reunification and the 1992 consensus – under which both sides tacitly agree there is only one China, but have different interpretations on what this means.
But the latest report from Premier Li Keqiang took a different tone, saying: “We will adhere to the major principles and policies on work related to Taiwan and resolutely oppose and deter any separatist activities seeking ‘Taiwan independence’.”
US to sell US$180 million worth of submarine-launched torpedoes to Taiwan
21 May 2020
“We will improve institutional arrangements, policies, and measures to encourage exchanges and cooperation between the two sides of the Taiwan Strait, further cross-strait integrated development, and protect the well-being of our compatriots in Taiwan,” the report said.
“We will encourage them to join us in opposing ‘Taiwan independence’ and promoting China’s reunification.
“With these efforts, we can surely create a beautiful future for the rejuvenation of the Chinese nation,” it said, dropping a clause that described the process as “peaceful”.
The 1992 consensus allows leeway for both parties to negotiate an agreement, but President Tsai Ing-wen has said the island would never accept it as the basis for cross-strait relations.
Taiwan’s Mainland Affairs Council said on Friday that the “one country, two systems” framework, touted by Beijing as a political basis for unification, had harmed cross-strait relations. It called for the two sides to work together to resolve their differences.
Tang Shao-cheng, an international relations specialist at Taiwan’s National Chengchi University, said the change in wording and tone of the Taiwan section of the work report could be seen as a warning to Tsai’s independence-leaning Democratic Progressive Party (DPP).
“Not mentioning ‘peace’ suggests Beijing is considering unification both by peaceful means and by force,” Tang said.
President Xi Jinping and Premier Li Keqiang at the National People’s Congress opening session on Friday. Photo: Kyodo
Derek Grossman, an analyst from US-based think tank Rand Corporation, said Beijing would continue to put pressure on the island using diplomatic, military, economic and psychological means.
“Beijing will continue to send military aircraft near the island … [it] could decide to end the Economic Cooperation Framework Agreement which has remained active in spite of Tsai’s election in 2016; Beijing could steal one or more diplomatic partners from Taipei. I would expect these types of actions to be on the table,” Grossman said.
How would mainland China attack Taiwan? A video outlines one scenario
22 May 2020
Sun Yun, director of the China programme at the Stimson Centre think tank in the US, said Beijing faced a dilemma on whether to continue economic integration with Taiwan because that had not had the political effect it wanted.
“The obstacles to unification are not economic, but political. Taiwan is unwilling to pursue unification with an authoritarian mainland. To solve that issue, presumably the mainland could pursue political reform. But in reality, the Chinese Communist Party is unwilling,” she said.
“If the economic and political approach doesn’t work, what’s left is the military approach. But with US intervention, the mainland will not prevail.”
Beijing recently warned Washington it would respond after US Secretary of State
, and demanded that the US stop selling arms to the island.
Joshua Eisenman, a professor from the University of Notre Dame in Indiana, said Beijing was running out of countermeasures, since its actions had only hardened attitudes on the island and enhanced the sense of Taiwanese identity.
“As I see it, all that remains is for the [Chinese Communist Party[ to sit down and talk to the DPP without preconditions and establish a modus vivendi for cross-strait relations,” he said.
Image copyright AFP / GETTYImage caption Shoppers walking past a broadcast of Chinese Premier Li Keqiang delivering his speech at the opening of the NPC on Thursday
China’s ruling Communist Party has set in motion a controversial national security law for Hong Kong, a move seen as a major blow to the city’s freedoms.
The law to ban “treason, secession, sedition and subversion” could bypass Hong Kong’s lawmakers.
Critics say China is breaking its promise to allow Hong Kong freedoms not seen elsewhere in China.
It is likely to fuel public anger and may even trigger fresh protests and demands for democratic reform.
The plan was submitted at the annual National People’s Congress (NPC), which largely rubber-stamps decisions already taken by the Communist leadership, but is still the most important political event of the year.
Hong Kong, a semi-autonomous region and an economic powerhouse, was always meant to have introduced such laws after the handover from British control to Chinese rule in 1997.
After last year’s wave of sustained and violent protest, Beijing is now attempting to push them through, arguing “law-based and forceful measures” must be taken to “prevent, stop and punish” such protests in the future.
On Friday, Hong Kong’s government said it would co-operate with Beijing to enact the law, adding it would not affect the city’s freedoms.
That article says Hong Kong “must improve” national security, before adding: “When needed, relevant national security organs of the Central People’s Government will set up agencies in Hong Kong to fulfil relevant duties to safeguard national security in accordance with the law.”
China could essentially place this law into Annex III of the Basic Law, which covers national laws that must be implemented in Hong Kong – either by legislation, or decree.
Addressing the congress, Premier Li Keqiang spoke of the economic impact of the coronavirus and on Hong Kong and Macau said: “We’ll establish sound legal systems and enforcement mechanisms for safeguarding national security in the two Special Administrative Regions.”
What do opponents say the dangers are?
Hong Kong is what is known as a “special administrative region” of China.
It has observed a “one country, two systems” policy since Britain returned sovereignty in 1997, which has allowed it certain freedoms the rest of China does not have.
Pro-democracy activists fear that China pushing through the law could mean “the end of Hong Kong” – that is, the effective end of its autonomy and these freedoms.
Last year’s mass protests in Hong Kong were sparked by a bill that would have allowed extraditions to mainland China.
Media caption Former Hong Kong governor Chris Patten: “UK should tell China this is outrageous”
The bill was paused, then withdrawn – but the protests continued until the virus outbreak at the end of the year.
The US has also weighed in, with President Trump saying the US would react strongly if it went through – without giving details.
It is currently considering whether to extend Hong Kong’s preferential trading and investment privileges.
Why is China doing this?
Mr Wang said the security risks had become “increasingly notable” – a reference to last year’s protests.
“Considering Hong Kong’s situation at present, efforts must be made at the state-level to establish and improve the legal system and enforcement mechanisms,” he is quoted as saying in state media.
Media caption The BBC’s Helier Cheung on Hong Kong’s 2019 protests
Beijing may also fear September’s elections to Hong Kong’s legislature.
If last year’s success for pro-democracy parties in district elections is repeated, government bills could potentially be blocked.
What is Hong Kong’s legal situation?
Hong Kong was under British control for more than 150 years up to 1997.
The British and Chinese governments signed a treaty – the Sino-British Joint Declaration – that agreed Hong Kong would have “a high degree of autonomy, except in foreign and defence affairs”, for 50 years.
This was enshrined in the Basic Law, which runs out in 2047.
There has been strong demand for air freight services since April, when Chinese factories got back to work
Cargo flights have become critical in moving protective health equipment across the globe
Planes of German air carrier Lufthansa at the country’s largest airport in Frankfurt. Photo: Reuters
German freight carrier Lufthansa Cargo is expanding in China, surpassing 100 weekly flights for the first time, and adding new flights to Shenzhen.
Peter Gerber, CEO of Europe’s largest cargo airline, said there had been heavy demand for its services, though this might cool by the peak of summer.
“At the moment, cargo demand is very, very strong,” he told the Post. “It started to get strong in April, when Chinese industries got back to work, and after that we have seen a constant, heavy demand, a real peak.”
Cathay Pacific and Cathay Dragon report combined HK$4.5 billion loss for start of 2020
15 May 2020
Global air freight capacity has been squeezed as two-thirds of the world’s aircraft have been grounded by the Covid-19 pandemic.
The collapse of air travel has practically put a stop to passenger flights, which typically carry half of all air cargo.
Since the pandemic, cargo flights have been critical in moving protective health equipment across the globe. From sending masks and other supplies to China in February, the German carrier is now taking urgent supplies from the mainland back to Europe.
Peter Gerber says Lufthansa Cargo has a high responsibility in maintaining supply chains, for both global health and world trade. Photo: Handout
“We have a high responsibility in maintaining supply chains in these unprecedented times for both global health and world trade,” Gerber said.
With the addition of Shenzhen, Lufthansa Cargo will fly to five destinations in China. It serves more than 300 destinations in 100 countries.
The cargo carrier is part of the Lufthansa Group and coordinates all the freight that goes into the passenger planes of its sibling brands, including Lufthansa, Swiss and Austrian.
Coronavirus: South Africa asks Hong Kong to remove its citizens from government quarantine list
16 May 2020
By next week, Lufthansa Cargo will be running more freight flights to China than the 72 passenger flights the group flew weekly before the pandemic to Beijing, Shanghai, Shenyang, Nanjing and Qingdao.
Lufthansa Cargo has a fleet of seven Boeing 777 Freighters (777Fs), with two new 777Fs arriving this year as part of its strategy to operate a fleet with a single aircraft type.
It also has six McDonnell Douglas-11Fs that Gerber said would still be retired as planned at the end of 2020, despite the extra demand for cargo capacity.
Its additional flights to China will make use of “preighters” – passenger aircraft flying cargo only. Gerber felt the trend of using empty passenger planes as “preighters” had peaked, pointing out that they cost the same to operate as freighters but carry only a fraction of the cargo.
Although he did not rule out future expansion, he said: “Demand will gradually come down in the next two or three months because a lot of equipment would have been shipped by then and some shipments will go on rail or ocean shipping.”
Coronavirus: Cathay Pacific could get cash injection from shareholder Qatar Airways
13 May 2020
He said some uncertainty remained over continued demand for airfreighted cargo, given the battered state of the world economy. Airlines would have to consider longer-term demand before deciding to invest more in cargo aircraft. “It depends how it looks beyond the next year,” he said.
Gerber said no decision had been taken yet on whether to convert some of the group’s orders for Boeing’s newest widebody 777X passenger aircraft into cargo planes.
He added that future plane orders would be balanced against the wider needs and spending decisions at Lufthansa Group, which is currently negotiating a government pandemic bailout package in the region of €9 billion (US$9.7 billion).
American destroyer’s mission comes a week before Taiwanese president officially starts second term in office
Increased military activity in the region could have unintended consequences but unlikely to lead to direct conflict, observer says
The guided-missile destroyer USS McCampbell made a transit through the Taiwan Strait on Thursday. Photo: US Navy
The United States sent a warship through the Taiwan Strait on Thursday as the Chinese military embarked on more than two months of live-fire naval drills off the mainland’s northern coast.
According to Taiwan’s defence ministry, the Arleigh Burke-class guided-missile destroyer transited the narrow body of water separating Taiwan from mainland China from north to south “in a routine mission”.
“It is continuing its southward voyage and the military is monitoring its movement through the intelligence it has gathered,” the ministry said.
In a statement on its Facebook page, the US Pacific Fleet said the McCampbell transited the Taiwan Strait as part of ongoing operations in the Indo-Pacific.
Analysts said the passage was a response to the People’s Liberation Army’s increasing military activity near Taiwan and in the wider region.
“This will become a new routine as a kind of US security commitment to maintain stability in the Indo-Pacific region,” said Soong Hseik-wen, professor of strategic studies and international relations at National Chung Cheng University in Taiwan.
Beijing urges France to cancel contract to sell arms to Taiwan
13 May 2020
The PLA has staged a series of war games, including fly-bys and warship transits through the strait, in recent months in response to what Beijing sees as growing pro-independence moves by the Tsai government and her party. China has also warned the US against supplying weapons to the island, which Beijing considers to be a wayward province that must return to the mainland fold, by force if necessary.
Mainland China has suspended official exchanges with Taiwan since Tsai was first elected president in 2016 and refused to accept the one-China policy, which Beijing says must be the foundation for any talks.
The PLA has embarked on 11 weeks of naval exercises off the coast of Tangshan in northern China, barring all other vessels from a 25km (15 mile) radius of the drill area, according to the China Maritime Safety Administration.
Taiwanese support closer ties with US over China, few identify as solely Chinese, Pew Research survey finds
13 May 2020
Both Beijing and Washington have ramped up military activities near Taiwan in recent months during the coronavirus pandemic, moves that some observers say run the risk of miscommunication.
Alexander Huang Chieh-cheng, professor of strategic studies and international relations at Tamkang University in Taipei, said no one could exclude the possibility of unintended incidents when both the US and the mainland were stepping up their presence in the region.
“Rational analysts would however argue that the two nuclear powers are not likely to engage in or escalate to direct military conflict,” he said.
Huang said he believed cross-strait relations would worsen during Tsai’s second term in office, which begins on May 20.
“The already damaged relationship between Taiwan and mainland China has worsened since the pandemic mainly due to travel bans and Taiwan’s increased international visibility,” he said.
On Tuesday, Japan’s Kyodo News reported that the PLA was planning a large-scale beach landing exercise near Hainan province in August, simulating a takeover of the Pratas Islands, which are controlled by Taiwan and also known as the Dongsha Islands.
In Taipei, Major General Lin Wen-huang said Taiwan was monitoring the PLA movements and “has contingency plans in place for the South China Sea to strengthen combat readiness and defence preparedness on both the Spratly and Pratas islands”.
Taiwan’s coastguard also announced on Wednesday that its Pratas Islands Garrison was scheduled to conduct an annual live-fire exercise in June to ensure the “effectiveness of various mortar and machine-gun positions”.
Taiwan shows off its military power after presidential election
Shanghai-based military commentator Ni Lexiong said that both the US Navy and PLA were increasing activities during the pandemic because neither side could afford to show weaknesses that the other might take advantage of.
The destroyer’s passage and the PLA’s drills were all part of such efforts, Li said.
But he agreed that both countries were unwilling, unable, and unlikely to have a real conflict.
“They are both bluffing. It’s a fake crisis,” he said. “A pandemic always ends or prevents a war if you look at history.
“I also don’t believe the PLA would want to take over the Dongsha or Taiping islands [in the South China Sea], because these islets alone are not worth a military campaign and all the consequences of that. The only target valuable enough for the PLA is Taiwan.”
Pou Chen makes footwear for the likes of Nike and Adidas, but says it has suffered from a lack of orders as global value chains strain under the impact from the virus
Chinese workers moved to Vietnam to help set-up new factories as the company expand its production, but have now become expendable
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports. Photo: Bloomberg
A group of 150 Chinese workers believe the world’s largest maker of trainers used the coronavirus as an excuse to fire them, having helped Taiwanese firm Pou Chen successfully expand its production into Vietnam for more than a decade.
Pou Chen, which makes footwear for the likes of Nike and Adidas, informed the group in late April that they would no longer be needed as they were unable to return to
from their hometowns in China due to the coronavirus lockdowns.
“We believe we contributed greatly to the firm’s relocation process, copying the production line management experience and successful model of China’s factories to Vietnamese factories,” said Dave Zhang, who started working for Pou Chen in Vietnam in 2003.
“Now, when the factories over there have matured, and there is a higher automation level in production, our value has faded in the management’s eyes and we got laid off, in the name of the automation level.”
Rush hour chaos returns to Vietnam’s streets as coronavirus lockdown lifted
The group claims the firm began to fire Chinese employees several years ago, with the total number dropping from over 1,000 at its peak to around 400 last year.
“We 150 employees were the first batch of Chinese employees to be laid off this year. We are all pessimistic and expect more will be cut,” added Zhang.
In its email on April 27, Pou Chen said it was forced to terminate the contracts of the Chinese employees across five of its factories due to an unprecedented decline in orders and financial losses.
The Chinese employees, many of whom have been working for the shoemaker for decades, said the compensation offered was unfair and below the levels required by labour law in both Vietnam and China.
In a further statement to the South China Morning Post, Pou Chen stood by the move as the coronavirus pandemic had reduced demand for footwear products and so required an “adjustment of manpower.”
“[The dismissals were] in accordance with the relevant labour laws of the country of employment … and employee labour contracts,” added the statement from Pou Chen, which employs around 350,000 people worldwide.
Company data showed Pou Chen’s first quarter revenues tumbled 22.4 per cent year-on-year to NT$59.46 billion (US$1.99 billion), the weakest in six years.
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports.
Last month, the company was also mulling pay cuts and furloughs that would affect 3,000 employees in Taiwan and officials based in its overseas factories, according to the Taipei Times.
Andy Zeng, who had worked for the firm since 1995, said the group were “very upset” when they received the news last month as the impact of the coronavirus pandemic began to reverberate around the world, disrupting global value chains.
“Most of us joined Pou Chen in the 1990s when we were in our late teens or early 20s, when the Taiwan-invested company started investing and setting up factories in mainland China. Now more than two decades have passed,” he said.
Zeng was among the first generation of skilled workers in China as Pou Chen developed rapidly, enjoying the benefits of cheap labour, although the workers themselves were rewarded with regular pay rises.
The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world – Andy Zeng
“I worked at the Dongguan branch of Pou Chen for 11 years from 1995.” Zeng added “In the 1990s and early 2000s, the company expanded rapidly in Dongguan with a growing number of large orders, and every worker had to work hard around the clock. I remember I earned 300 yuan (US$42) a month in 1995, and my monthly salary rose to 1,000 yuan (US$141) in 1998.”
Zeng’s salary eventually rose to over 3,000 yuan in 2005 as China’s economy boomed, leading Pou Chen to seek alternative production sites in Vietnam and Indonesia where labour and land were even cheaper. However, in the early 2000s, the new locations lacked skilled shoe manufacturing workers like Zeng.
“The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world and the offer of US$700 per month was not bad.” Zeng said.
“We actively cooperated with their plans. Over the past decade, we have been away from our families and hometowns, and followed the company’s strategy to work hard in Vietnam.
With no deaths and cases limited to the hundreds, Vietnam’s Covid-19 response appears to be working
“In 2005, the company sent me to its newly-built factory in Vietnam. This year was my 14th year in Dong Nai in Vietnam. I have witnessed the company’s production capacity in Vietnam become larger and larger. When I arrived, there were only a few production lines, and now there are at least dozens of them, employing more than 10,000 workers in each factory.”
According to a report in the Taipei Times on April 14, citing both Reuters and Bloomberg, Pou Chen was ordered to temporarily shut down one of its units in Vietnam over coronavirus concerns, according to Vietnamese state media.
The company was forced to suspend production for two days after failing to meet local rules on social distancing, Tuoi Tre newspaper reported.
“We Chinese employees actually were pathfinders for the company’s relocation from China to Vietnam,” said Zhang, who was in charge of a 1,700-worker factory producing 1.7 million shoe soles per month.
What our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult – Dave Zhang
“We were sent to resolve any ‘bottlenecks’ in the production lines that were slowing down the rest of the plant, because during the launch of every new production line, Vietnamese workers would strike and get into disputes. As far as I know, there were over a thousand Chinese employees managing various aspects of the production lines in the company’s Vietnamese factories.
“In fact, what our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult. That is to teach Vietnamese workers our experience of working on a production line, improve the productivity of the Vietnamese workers, and help the factories become localised.”
Overall, Pou Chen says it produces more than 300 million pairs of shoes per year, accounting for around 20 per cent of the combined wholesale value of the global branded athletic and casual footwear market.
“Because of cultural shock and great pressure to expedite orders, Vietnamese workers were not used to the management style of Taiwan factories,” Zhang added.
“Many of our Chinese employees were beaten by Vietnamese workers [due to cultural differences about work]. During anti-China protests in Vietnam, we were still under great pressure to keep the local production lines operating.”
Image copyright AFP
CHINDIA ALERT: You'll be living in their world, very soon 
Coronavirus: Chinese workers in Vietnam cry foul after being fired by Taiwanese firm making shoes for Nike, Adidas
A group of 150 Chinese workers believe the world’s largest maker of trainers used the coronavirus as an excuse to fire them, having helped Taiwanese firm Pou Chen successfully expand its production into Vietnam for more than a decade.
Pou Chen, which makes footwear for the likes of Nike and Adidas, informed the group in late April that they would no longer be needed as they were unable to return to
from their hometowns in China due to the coronavirus lockdowns.
“We 150 employees were the first batch of Chinese employees to be laid off this year. We are all pessimistic and expect more will be cut,” added Zhang.
In its email on April 27, Pou Chen said it was forced to terminate the contracts of the Chinese employees across five of its factories due to an unprecedented decline in orders and financial losses.
The Chinese employees, many of whom have been working for the shoemaker for decades, said the compensation offered was unfair and below the levels required by labour law in both Vietnam and China.
“[The dismissals were] in accordance with the relevant labour laws of the country of employment … and employee labour contracts,” added the statement from Pou Chen, which employs around 350,000 people worldwide.
Company data showed Pou Chen’s first quarter revenues tumbled 22.4 per cent year-on-year to NT$59.46 billion (US$1.99 billion), the weakest in six years.
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports.
Andy Zeng, who had worked for the firm since 1995, said the group were “very upset” when they received the news last month as the impact of the coronavirus pandemic began to reverberate around the world, disrupting global value chains.
“Most of us joined Pou Chen in the 1990s when we were in our late teens or early 20s, when the Taiwan-invested company started investing and setting up factories in mainland China. Now more than two decades have passed,” he said.
Zeng was among the first generation of skilled workers in China as Pou Chen developed rapidly, enjoying the benefits of cheap labour, although the workers themselves were rewarded with regular pay rises.
The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world – Andy Zeng
What our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult – Dave Zhang
Posted in 50 per cent, accordance, Adidas, adjustment of manpower, around the world, automation level, below the levels, Bloomberg, boomed, bottlenecks, Chaos, cheaper, China, China’s economy, Chinese employees, Chinese workers, closing, comment, Company, compensation, comply, contributed, cooperated, coronavirus, coronavirus lockdowns, Covid-19 response, cry foul, cultural shock, deaths, decade, decline, declined, dismissals, disputes, Dong Nai, Dongguan, employee labour contracts,, expand, expendable, factories, families, financial losses, fired, footwear, furloughs, higher, hometowns, impact, Indonesia, Labour law, lack of orders, land, Mainland China, making, management experience, management style, media reports, Nike, opportunity, orders, pay cuts, pessimistic, plans, plummeted, Pou Chen, production, production line, relocation process, requirements, retail stores, returns, Reuters, Rush hour, second quarter, set up, shoe manufacturing, shoes, skilled, Social distancing, south china morning post, strain under, streets, strike, Taipei Times, Taiwan, Taiwan-invested, Taiwanese firm, Uncategorized, unfair, unprecedented, Vietnam, Vietnamese, Virus, workers, world’s largest maker of trainers | Leave a Comment »