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.
A pedestrian waits to cross a street in Brussels, Belgium, May 6, 2020. (Xinhua/Zhang Cheng)
— New single-day COVID-19 deaths continue to drop in France
— Italy sees fewer COVID-19 patients, number of active infections falls to 70,187
— New deaths from COVID-19 keep falling in Spain as PM seeks final extension of State of Alarm
— Deaths from coronavirus top 9,000 in Belgium
BRUSSELS, May 16 (Xinhua) — The following are the latest developments of the COVID-19 pandemic in European countries.
A man makes a phone call near the Eiffel Tower at the Trocadero Palace, Paris, France, May 15, 2020. (Xinhua/Gao Jing)
PARIS — France had registered 96 new deaths from COVID-19 over the past 24 hours, fewer than the previous two 24-hour periods, while the balance of the coronavirus-related hospitalization remains negative, France’s Health Ministry said on Saturday.
According to the ministry, the 96 new single-day deaths were lower than 104 registered on Friday and 351 on Thursday. So far, 27,625 people have succumbed to the coronavirus-caused disease across France.
Meanwhile, France is now the world’s fourth worst-hit country in terms of human loss caused by COVID-19 after the United States, Britain and Italy.
As of Saturday, the country had recorded 142,291 confirmed cases, a single-day increase of 372, slower than Friday’s 563. A total of 61,066 patients had recovered and returned home since early March.
People wait in line outside a cocktail bar in Rome, Italy, May 12, 2020. (Xinhua/Cheng Tingting)
ROME — The number of COVID-19 hospitalizations and intensive care (ICU) patients dropped in Italy over the past 24 hours, according to the latest tally posted by the Civil Protection Department on Saturday.
Recoveries rose by 2,605 from a day earlier, bringing the total to 122,810.
Nationwide, the number of active infections fell to 70,187, down from 72,070 on Friday.
Of those who tested positive for the new coronavirus, 775 are in intensive care, down by 33 from Friday, and 10,400 are hospitalized with symptoms, down by 392.
The death toll on Saturday was 153, bringing the total to 31,763 since the outbreak was first recorded in Italy’s northern Lombardy region in February.
The total number of COVID-19 cases combining infections, fatalities and recoveries has risen to 224,760, up from 223,885 on Friday.
A security guard offers disinfectant gel to a woman at the entrance of a building in Barcelona, Spain, on May 11, 2020. (Photo by Sergi Camara/Xinhua)
MADRID — The Spanish Ministry of Health, Consumer Affairs and Social Welfare confirmed on Saturday falls in the number of new deaths from COVID-19 as well as new cases.
The total number of deaths in Spain rose to 27,563 after 102 people lost their lives to COVID-19 in the 24-hour period until 21:00 hours local time on Friday.
This was the lowest number of deaths in a 24-hour period since March 16, with 50 of the deaths in the regions of Madrid and Catalonia.
The same period also saw a slight fall in the number of new cases. The Health Ministry reported 539 new infections, down from 549 reported 24 hours earlier, taking the total number of confirmed cases to 230,698.
Also on Saturday, Spanish Prime Minister Pedro Sanchez said he will seek a fifth and final extension of the State of Alarm, which was imposed on March 15 to control the spread of the coronavirus.
Speaking in a televised speech, Sanchez said the upcoming final State of Alarm, which will come into effect on May 24 if approved, will be “different” from others.
“It is expected to be the last State of Alarm. We are going to request in the Congress of Deputies that it should last for a month,” he said. All the previous four extensions have been 15 days.
Few people are seen at the Saint-Hubert Royal Galleries shopping street in Brussels, Belgium, May 6, 2020. (Xinhua/Zhang Cheng)
BRUSSELS — With an increase of 47 deaths reported in the last 24 hours, the novel coronavirus had caused a total of 9,005 deaths in Belgium since the beginning of the epidemic, said the public health institute Sciensano on Saturday.
Of the 9,005 deaths, 48 percent took place in hospitals, 51 percent in nursing homes, and about 0.6 percent elsewhere, according to Sciensano. Deaths in hospitals were all confirmed COVID-19 cases. Of the fatalities in nursing homes, 23 percent were confirmed by test while the other were presumed by symptoms.
Also in the past 24 hours, 345 new cases of COVID-19 have been confirmed, raising the cumulative cases to 54,989 in Belgium.
The plight of these workers, many of whom have been walking for days without adequate food and water, has caused widespread anger in the country.
Train and bus services were shut during the lockdown and even though some have been restarted for migrants, many say they cannot afford the fare and are unsure if they will be accommodated on them due to social distancing norms.
Several have died in making the journey, including 16 migrants who were run over by a train while they were sleeping on the railway tracks.
Media caption Coronavirus: Heartbreaking scenes as India lockdown sparks mass migration
Ms Sitharaman also announced that workers would be able to use ration cards – usually only valid at village level – anywhere in the country regardless of where it was issued.
The ration cards usually entitle holders to subsidised food.
She added that the move towards portable cards would benefit nearly 670 million people and will be completed by March next year.
The government will also provide affordable housing for migrant labour by converting existing vacant government funded housing complexes, among other things.
The announcements on Thursday – the second tranche of a series of economic stimulus measures – were aimed at migrant workers, street hawkers, small traders and small farmers.
The full details of the economic package, which is equivalent to 10% of India’s gross domestic product, will be known in some days as the government is announcing a different tranche every day.
Ms Sitharaman’s announcements also included details of “special credit” to be provided to five million street hawkers who have been forced to cease working over the last month and a half.
To help farmers, the government also announced an emergency $4bn “working capital funding” which would benefit some 30 million small farmers to meet crop requirements in May and June
In March, India said it would provide around 1.7 trillion rupees in direct cash transfers and food security measures, mainly for the poor.
However, Mr Modi’s administration had been accused in some quarters of not having done enough.
Members of a road construction team depart from the advance camp at an altitude of 6,500 meters of Mount Qomolangma in southwest China’s Tibet Autonomous Region, May 10, 2020. A road construction team will work on a route to the peak of Mount Qomolangma on May 12 if weather conditions permit. China initiated a new round of measurement on the height of Mount Qomolangma, the world’s highest peak, on April 30. The measurement team consists of members from the Ministry of Natural Resources and the national mountaineering team. (Xinhua/Sun Fei)
MOUNT QOMOLANGMA BASE CAMP, May 10 (Xinhua) — A road construction team will work on a route to the peak of Mount Qomolangma on May 12 if weather conditions permit.
In order to complete missions of building a route to the peak and transporting materials to camps below 8,300 meters above sea level, members of road construction and transportation teams departed for a camp at an altitude of 7,028 meters from the advance camp at an altitude of 6,500 meters at 7:00 a.m. Sunday.
The members eliminated potential safety hazards along the route and arrived at the camp at 2:00 p.m.
On May 12, a total of 12 guides will depart from the camp at an altitude of 7,028 meters to transport materials to another camp.
China initiated a new round of measurement on the height of Mount Qomolangma, the world’s highest peak, on April 30. The measurement team consists of members from the Ministry of Natural Resources and the national mountaineering team.
Since the founding of the People’s Republic of China in 1949, Chinese surveyors have conducted six rounds of scaled measurement and scientific research on Mount Qomolangma and released the height of the peak twice in 1975 and 2005, which was 8,848.13 meters and 8,844.43 meters respectively.
Marks caused by the mask are seen on the face of a nurse at the Fuzhou Pulmonary Hospital in Fuzhou, southeast China’s Fujian Province, Jan. 31, 2020. (Photo by Wang Yi/Xinhua)
BEIJING, May 11 (Xinhua) — Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, has sent greetings to nurses across the country ahead of International Nurses Day, which falls on May 12.
— As the continued global spread of COVID-19 is weighing on the world economy, China’s foreign trade is under considerable downward pressure.
— Many export-oriented companies in China are turning to the domestic market for a lifeline while grappling with dropping overseas orders as major markets remain in the grip of the pandemic.
by Xinhua writers Zhang Yizhi, Li Huiying, Hu Guanghe, Xu Ruiqing
FUZHOU, May 9 (Xinhua) — Walking back and forth between shelves of neatly stacked shoes, some 20 live streamers dashed at the instructions of their followers on the phone, grabbing a shoe now and then from the shelves for a close-up in front of the camera.
At around eight o’clock every night, the supply chain platform 0594 in the city of Putian, east China’s Fujian Province, springs to life as live streamers flock to the exhibition area to sell shoes produced by the local manufacturers, many of which are troubled by the cancellations or delays of overseas orders amid the global coronavirus pandemic.
“To get rid of the excess inventory, many manufacturers in Putian are turning to live streaming to explore the domestic market,” said Chen Xing, general manager of 0594. “We are now cooperating with over 40 manufacturers and there will be more of them joining us in the future.”
The platform is also building an internet celebrity incubator and has so far organized seven rounds of influencer training courses enrolling more than 200 attendees.
Huang Huafang, 39, signed up for the two-day crash course in late March and soon after started her first live streaming session. She works from around 2 p.m. to 10 p.m., attracting over 500 followers and selling more than 20 pairs of shoes every day.
Though she is not a well-known live streamer, she is optimistic about the future. “There is a long way to go, but I believe live streaming is a trend. It is an essential skill for anyone who wants to market online,” said Huang.
A staff sells shoes through live streaming at an e-commerce warehouse in Putian, southeast China’s Fujian Province, May 7, 2020. (Xinhua/Lin Shanchuan)
According to Chen, the platform 0594 sold almost 130,000 pairs of shoes in April alone. As the domestic economic outlook continues to pick up, the sales target of May has been set at 200,000 pairs.
Like manufacturers in Putian, a city with a large number of export-oriented enterprises, many Chinese factories are turning to the domestic market for a lifeline, while grappling with dropping overseas orders as major markets remain in the grip of the pandemic.
ADAPT OR DIE
With decades of experience in manufacturing and developing products for overseas clients, some export-oriented companies in China are rolling out products catering to the domestic market.
After months of gloomy business, Wu Songlin, general manager of Putian-based Hsieh Shun Footwear Co., Ltd., heaved a sigh of relief as trucks loaded with therapeutic shoes tailored to the home market left his factory.
It was the first shipment for the domestic market since Wu and his partners started the company in 2010. In the past, his company only had two clients, one from Europe and the other from Japan. Business used to run smoothly and life was good.
But his factory was on the brink of a shutdown in March when the coronavirus pandemic started to ravage the global economy. No new orders came in and shipments of existing orders were requested to be delayed until June.
People work in a footwear workshop in Putian, southeast China’s Fujian Province, April 27, 2020. (Xinhua/Lin Shanchuan)
“Orders were canceled after completion of production, and our capital flow is stuck in our inventory. The pressure is mounting to keep the factory running,” Wu said. “By the end of June, workers would be left with no work to do as soon as we complete the existing orders.”
After losing almost all their orders from overseas clients, the desperate shoemaker turned to the domestic market. He called one of his old business partners and secured an order for massage footwear, which is selling like hot cakes in the domestic market as health tops the agenda in the time of the novel coronavirus.
The factory produced 10,000 pairs of massage shoes in April, and the number is expected to reach 30,000 in May, enough to keep the production lines running.
Thanks to the company’s quick adaptation, about 200 workers kept their jobs in the factory, while 20 percent were furloughed and the remaining workers were arranged to work in other companies as part of the city’s employee sharing program.
“If domestic orders keep coming in, our operation will hopefully get back to normal by September when the monthly output of massage shoes will reach 90,000,” Wu said. “By then the company will live and thrive without any orders from overseas customers.”
A woman works in a workshop of Hsieh Shun Footwear Co., Ltd. in Putian, southeast China’s Fujian Province, May 7, 2020. (Xinhua/Lin Shanchuan)
But switching to another market is not easy, explained Wu. In the past, export-oriented factories were only in charge of manufacturing, while brands would take care of sales, promotion as well as customer support.
“If you are selling to the domestic market, you need to have your own brand and marketing capacity,” he said. “Working with e-commerce platforms could be one way out, but it’s more important to understand domestic consumers and meet their needs.”
CUSTOMIZE THE FUTURE
For years, many export-focused manufactures have been trying to climb up the value chain and tap the uncharted waters of the domestic market. As the pandemic continues to spread, there is a strong push for them to embrace customized manufacturing.
In an experience store located in downtown Putian, customers line up waiting to have their feet measured on a smart device. After a few seconds, they get their readings on the phone, and a few swipes and clicks later, they place their orders with unique features, colors, and shapes.
Adjacent to the experience store, there is a flexible manufacturing workshop, which gives quick responses to orders and produces shoes following the customized demands of individual buyers.
SEMS, a longstanding sports footwear manufacturer that has established a partnership with several international brands, started to adopt flexible manufacturing years ago in an effort to adapt to the evolving domestic market.
A customer has her feet measured on a smart device in sports footwear manufacturer SEMS in Putian, southeast China’s Fujian Province, May 8, 2020. (Xinhua/Lin Shanchuan)
Customization gives consumers the benefit of products that fit their needs, and at the same time allows factories to utilize improved workflows and technology to maintain high output and omit the process of inventory and distribution, said Zhu Yizhen, the executive vice president of the company.
“Currently we only sell over 100 pairs of customized shoes a day, but we are at the dawn of a new era,” Zhu said. “We hope more companies awaken to the developing trend and join in the practice of mass customization.”
Customer to manufacturer, or C2M, which allows consumers to place orders directly to factories for customized products, has become a buzzword among export-oriented manufacturers hoping to reach domestic consumers amid the pandemic.
Li Junjie, who runs a ceramic flowerpot plant in Fujian’s Dehua County, one of the manufacturing centers of ceramics in China, did not sell a single pot to his overseas customers since the coronavirus outbreak in late January.
The factory used to export 30 percent of its flowerpots to the United States and Spain, but Li managed to make up for the lost deals by selling on domestic e-commerce platforms. Instead of bulk orders placed by foreign clients, domestic consumers tend to purchase customized products in small amounts.
Photo shows the automatic production line of a customized workshop in sports footwear manufacturer SEMS in Putian, southeast China’s Fujian Province, May 8, 2020. (Xinhua/Lin Shanchuan)
With the big data provided by e-commerce platforms, Li can tell which items will be a hit so as to increase their production and develop new products based on a thorough analysis of different consumer groups.
“Our online sales almost doubled over the past year, and we have sold over 100,000 customized pots this year, thanks to the C2M business model,” Li said.
Li’s company is one of many Chinese small and medium-sized enterprises (SMEs) that have benefited from the e-commerce giant Alibaba’s Spring Thunder Initiative, which is aimed at helping export-focused SMEs expand into new markets.
The initiative will also help some SMEs to transform and develop their business in the Chinese market through measures such as resource support, fee reductions, and fast-track processing.
In his “verbal message of thanks”, Mr Xi said he highly appreciated Mr Kim’s support during China’s outbreak and “showed his personal attention to the situation of the pandemic and people’s health” in North Korea, according to state media.
Mr Xi called for more efforts to strengthen co-operation in preventing the spread of the coronavirus, and said China was “willing to continue to provide assistance within its own capacity for [North Korea] in the fight against Covid-19”.
On Friday, North Korean state media reported that Mr Kim had sent a verbal message to the president that “congratulated him, highly appreciating that he is seizing a chance of victory in the war against the unprecedented epidemic”.
Image copyright REUTERSImage caption Kim Jong-un disappeared from public view for 20 days, before visiting a factory on 2 May
Mr Kim recently went 20 days without appearing in public, and missed the celebration of his grandfather’s birthday – one of the biggest events of the year.
Some media reports claimed he was “gravely ill”, or even dead.
But he then appeared at a fertiliser factory on 2 May – apparently in good health.
On Wednesday, South Korea’s National Intelligence Service told a parliamentary committee that there had been no signs the health rumours were true.
“He was performing his duties normally when he was out of the public eye,” a member of the committee, Kim Byung-kee, told reporters afterwards.
The lawmaker said the North Korean leader’s absence could have been down to a Covid-19 outbreak that the authorities in Pyongyang had not reported.
Analysis
By Celia Hatton, Asia Pacific Editor, BBC World Service
For months, North Korea-watchers have questioned Pyongyang’s claims that it has managed to isolate itself from Covid-19.
Admittedly, North Korea was the first country to suspend travel in response to the virus. There are unconfirmed reports that North Korean guards have been ordered to shoot at those who try to cross the lengthy border the North shares with China. However, it will be difficult to completely seal that dividing line for long. North Korea’s underground economy relies on illicit trade with Chinese entrepreneurs.
Beijing has a few good reasons for wanting to help North Korea. On a practical level, China needs to suppress a possible Covid-19 outbreak there if it wants to keep its own population healthy. Beijing also worries about what might happen inside North Korea if the virus takes hold. The North’s decrepit health system would quickly be overwhelmed by an outbreak of Covid-19, and that could threaten the fragile Kim Jong-un regime. Beijing has been Pyongyang’s biggest aid donor for decades, and it will continue to do what it can to keep Mr Kim in power. The alternatives to Kim Jong-un are much riskier for China, which does not want change on its doorstep.
China’s global political interests are also at play. Diplomatically, Mr Xi’s public exchange with Kim Jong-un underlines the seemingly close ties between China and North Korea. Pyongyang has been slow to accept public offers of help from the United States, and peace talks with Washington have stalled. If North Korea appeared to accept Beijing’s help, China would reassert itself as North Korea’s “true” ally in a time of need.
South Korea itself reported 18 new confirmed cases of Covid-19 on Saturday.
Seventeen of them are linked to a 29-year-old man who tested positive after spending time at five nightclubs and bars in Seoul’s Itaewon leisure district last weekend, the Yonhap news agency said.
Mayor Park Won-soon ordered nightclubs, bars and hostess venues across the capital to suspend business in response.
“Carelessness can lead to an explosion in infections – we clearly realised this through the group infections seen in the Itaewon club case,” Mr Park said.
Health officials have urged people who have visited the five venues in Itaewon to self-isolate and get tested to prevent additional transmissions. At least 1,500 people signed their entry logs, according to Yonhap.
The new infections brought the nationwide total to 10,840, while the death toll remained unchanged at 256.
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.
Beijing’s Chaoyang district remains the last high-risk area in China, with virus preventive measures continuing to impact on travel and shopping plans
China faces the dilemma of preventing a re-emerge of the pandemic, while also pushing to get its economy back to normal
China’s continued pandemic prevention measures, coupled with still hesitant consumer demand, will inevitably lead to persistent limitations on the nation’s economic recovery, analysts said. Photo: Bloomberg
After nearly three months of being quarantined by herself in Beijing, Mary Zhao was looking forward to the upcoming long weekend at the start of May to be able to finally reunite with her parents.
But Zhao was forced to abandon her plan for the Labour Day holidays as Beijing’s upmarket Chaoyang district, where she lives, remains the only high-risk zone for coronavirus in the entire country.
If she travelled the five hours by car, or two hours via bullet train, to the neighbouring Hebei province, she would first have to undergo a 14-day quarantine before seeing her parents. Her parents would also have the same two week quarantine to look forward to once they returned home if they came to visit their daughter in Beijing.
These strict controls to prevent a re-emergence of the coronavirus outbreak are making a return to normal life impossible for many, and mean the final economic and social cost
from China’s draconian preventive measures could be much larger than expected.
Wuhan declares ‘victory’ as central Chinese city’s last Covid-19 patients leave hospital
It underscores the dilemma facing China’s leaders on how to balance the need to
and to avoid a fresh outbreak. On the surface, China may be able to declare victory as even Wuhan, the city where the virus was first detected, announced that the last Covid-19 patient had left hospital on Sunday. But fears of a renewed outbreak have kept the country’s cinemas and most schools closed, with travel between provinces discouraged.
China’s national borders also remain largely closed, with flights being cut to a minimum, and a mandatory 14-day quarantine for every arrival. In the number of places where new cases have been reported, quarantine requirements have been tightened, including Harbin and a few other cities near the border with Russia.
Chaoyang, the home to one of Beijing’s main business districts and most foreign embassies, changed its risk rating to high from low in the middle of April after three new cases were reported, dealing a fresh blow to the district’s
and forcing many of the 3.5 million residents to cancel their travel plans.
On the outskirts of Beijing, near Beijing Capital International Airport, returning migrant workers to Picun village were ordered to stop at entrance and could only be escorted inside by their landlord, with many villages and residential compounds remaining closed to outsiders.
In the high-end shopping district of Guomao, some shops also remain closed as there are few potential customers, while over in the popular Sanlitun area, metal barriers restrict access and temperature checkpoints are still required.
The landmark Apple Store in the popular Taikoo shopping centre is open, but with limited customers allowed inside, there are long queues outside. Customers are required to scan a QR code to check their movements over the last few days before entering.
Coronavirus: More schools reopen in China for students preparing for university entrance exams
“Why do I have to spend 20 minutes just to get into the Apple Store? The sun has almost melted me down,” one visitor complained to the security guards at the front of the shop.
China’s continued pandemic prevention measures, coupled with still hesitant consumer demand, will inevitably lead to persistent limitations on the nation’s economic recovery, analysts said.
Ernai Cui, an economist at research firm Gavekal Dragonomics, said on Monday that China’s cautious approach to lifting restrictions “points to a weak second quarter for consumer services”, adding additional pressure to the economic recovery.Mao Zhenhua, a researcher at the China Institute of Economics at Renmin University, said China’s preventive measures will inevitably be a drag on production, employment and exports.
KUNMING, April 25 (Xinhua) — Kunming, capital of southwest China’s Yunnan Province announced Friday it will issue e-vouchers worth 100 million yuan (about 14.12 million U.S. dollars) to promote consumption.
According to the Kunming Municipal Bureau of Commerce, the e-vouchers can be used for consumption in tourism, catering, and sports. The city will also issue special e-vouchers to groups of needy people.
The e-vouchers will be issued through an app online from April 28 to 30. Citizens can use the e-vouchers from May 1 to 31.
Industries in the city including tourism, catering and sports were seriously affected by the COVID-19 epidemic in the last few months.
Test in Xiong’an, the new city being built south of Beijing, will focus on everyday goods and services for the first time
American food outlets to be included in the digital currency tests, conducting small transactions with local firms
American chains Starbucks, McDonald’s and Subway were named on the People’s Bank of China’s list of firms that will test the digital currency in small transactions with 19 local businesses. Photo: Bloomberg
China’s central bank has accelerated the testing of its new sovereign digital currency and, for the first time, will include some foreign consumer brands in the programme.
American chains Starbucks, McDonald’s and Subway were named on the People’s Bank of China (PBOC)’s list of firms that will test the digital currency in small transactions with 19 local businesses.
The global names will be joined by local hotels, convenience stores, a stuffed bun shop, a bakery, a bookstore and a gym, according to details revealed at a promotional event in the Xiong’an New Area, a city being built south of Beijing, news portal Sina.com reported.
The inclusion of businesses providing everyday goods and services marks an expansion of the PBOC’s testing. It follows a previous disclosure that last week in Suzhou the digital currency was used to pay half public sector workers’ travel subsidies for May.
Is China a currency manipulator?
Wednesday’s promotional event was organised by the local branch of the National Development and Reform Commission, the powerful planning agency, and attended by representatives of the Big Four state-owned banks and two of the country’s internet giants – Alibaba and Tencent.
China has not released a timetable for launching the digital yuan, but last week’s reports on new testing have fanned speculation that it could be imminent.
The tests were reportedly accelerated after Facebook launched its Libra project in June last year, an attempt to create a global digital currency pegged to a basket of currencies and backed by global commercial giants.
The Libra Association, the consortium managing the project, announced changes last week in an attempt to win regulatory approval and pave the way for an official launch sometime later this year. The consortium said it would create multiple digital units tied to existing currencies such as the US dollar or the euro, rather than a single token based on a basket of currencies.
China’s official digital currency, known as Digital Currency Electronic Payment (DCEP), came into the public spotlight last week when a screenshot of a test version of an app developed by the Agricultural Bank of China circulated online.
The digital currency app has several basic functions, similarly to other Chinese online payment platforms such as Alipay and WeChat Pay – the country’s two most popular online payment tools – allowing users to make and receive payments, and transfer money.
“It’s certain that the DCEP is now in its final testing stage and should be officially launched,” BlockVC, an investment firm, said in a research note.
The PBOC’s digital currency research institute confirmed last Friday that testing was being conducted in four cities: Shenzhen, Suzhou, Xiong’an and Chengdu. In addition, venues for the 2022 Winter Olympics in Beijing and Zhangjiakou will join the testing programme in the future.
What is the Hong Kong Dollar Peg?
The institute, which was inaugurated in 2017, said that the test versions and applications of the currency had not been finalised.
The project testing is based on two principles: the central bank issues the virtual money to commercial banks who then pass it on to consumers, and that is aimed at replacing cash in all transactions.
China is the first major economy to publicly announce plans for a sovereign digital currency, aiming to better control the rapid rise of digital payments worldwide.
The PBOC has, however, cracked down on the trading of other digital currencies and banned banks from accepting cryptocurrencies, which it views as a risk to financial stability.
CHINDIA ALERT: You'll be living in their world, very soon 