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.
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BEIJING/SHANGHAI (Reuters) – China expects to import more soybeans and pork this year following the novel coronavirus outbreak and African swine fever, which has decimated its pig herds.
Soybean imports are forecast at 92.48 million tonnes this year, rising to 96.62 million tonnes in 2025 and 99.52 million tonnes in 2029, an official from the agriculture ministry told a video conference on the outlook for agriculture released on Monday.
Pork imports this year are seen rising to 2.8 million tonnes, a 32.7% increase from the previous year.
China is a key buyer and consumer of soybeans and pork globally, and typically imports millions of tonnes of soybeans per year to crush for meal to feed its livestock.
The African swine fever outbreak, however, had slashed China’s pig herd by over 40% last year, reducing supplies in the world’s biggest pork consumer.
Combined with the coronavirus outbreak, which hit the transport of pigs and delayed the restart of slaughtering plants, prices of China’s favourite meat rose to record levels in February.
China has been increasing pork imports in recent months to make up for the drop in domestic supply.
Despite the expected surge in imports, China’s 2020 pork consumption is forecast to fall to 42.06 million tonnes, down 5.6% year-on-year, hit by high prices and a fall in consumer demand due to the coronavirus outbreak, according to the agriculture ministry.
In line with the slowing consumption, China’s slaughtered pig herd this year will fall 7.8% year-on-year to 501.49 million heads. Pork output this year will also decline to 39.34 million tonnes from 2019, but will rebound to around 54 million tonnes in 2022.
In the longer term, however, pork imports are expected to gradually fall, the ministry forecast, while beef and mutton imports are set to increase in the next decade.
Meanwhile, China’s domestic soybean output is seen at 18.81 million tonnes in 2020, a 3.9% gain from the previous year, while crushing volumes were pegged at 85.98 million tonnes.
Soybean consumption will increase steadily and continue to rely mainly on imports in the next 10 years, said a ministry official.
The ministry also said China’s corn acreage and output are both set to increase in 2020, with production forecast to reach over 260 million tonnes this year, while annual rice output is expected to hold steady above 200 million tonnes per year in the next 10 years.
Buying and paying for meals and supplies online was already second nature for many Chinese before the Covid-19 lockdown
The supply and delivery networks that were already in place were able to work with the authorities in cities like Wuhan
China’s established home delivery system played an important role in getting food and other necessities to residents during the Wuhan lockdown. Photo: EPA-EFE
When Liu Yilin, a retired middle schoolteacher in Wuhan, first heard rumours of a
and shoppers flooded to the markets and malls to snap up supplies.
But as time went on and with residents banned from leaving their homes, he became increasingly concerned about getting hold of fresh supplies of vegetables, fruit and meat until the nation’s vast network of delivery drivers came to the rescue.
“It was such a relief that several necessity purchasing groups organised by community workers and volunteers suddenly emerged on WeChat [a leading social media app] days after the lockdown,” Liu said. “China’s powerful home delivery service makes life much easier at a time of crisis.”
Hu Xingdou, a Beijing-based independent political economist said: “Home delivery played a very important role amid the coronavirus outbreak. To some extent, it prevented people from starving especially in cases when local governments took extreme measures to isolate people.”
According to Liu, people in Wuhan during the lockdown had to stay within their residential communities, with community workers guarding the exits.
Human contact was limited to the internet. Residents placed orders online with farmers, small merchants or supermarkets to buy daily necessities, and community workers helped distribute the goods from deliverymen.
Every morning, Liu passed a piece of paper with his name, phone number and order number to a community worker who would collect the items from a courier at the gate of the residential area.
Thanks to a high population density in urban areas, affluent labour force and people’s openness to digital life, China has built a well-developed home delivery network.
Extensive funding from technology companies has been invested in hardware infrastructure, software to improve logistics and big data and cloud computing to help predict consumers’ behaviour.
Mark Greeven, professor of innovation and strategy at IMD Business School in Lausanne, Switzerland, said: “Whether it is delivery of products, air parcels or fresh food or even medicine or materials for medical use, China has a very well developed system. Much better developed than I think almost any other places in the world.
“Well before the crisis, China had started to embrace digital technology in daily life whether it is in consumption, business, government and smart cities and use of third party payments. All of these things have been in place for a long time and the crisis tested its agility and capability to deal with peak demand.”
China’s e-commerce giants help revive sales of farm goods from Hubei
3 Apr 2020
According to e-commerce giant JD.com, demands for e-commerce and delivery services spiked during the outbreak of Covid-19, the illness caused by the new coronavirus.
It sold around 220 million items between January 20 and February 28, mainly grains and dairy products with the value of beef orders trebling and chicken deliveries quadrupling compared with a year ago.
Tang Yishen, head of JD Fresh, its fresh foods subsidiary, said: “The surge of online demand for fresh merchandise shows the pandemic helped e-commerce providers further penetrate into the life of customers. It also helped upstream farm producers to know and trust us.”
Meituan Dianping, a leading e-commerce platform, said its grocery retail service Meituan Instashopping reported a 400 per cent growth in sales from a year ago in February from local supermarkets.
The most popular items ordered between January 26 and February 8 were face masks, disinfectant, tangerines, packed fresh-cut fruits and potatoes.
The food delivery service Ele.me said that, between January 21 and February 8, deliveries of frozen food surged more than 600 per cent year on year, followed by a nearly 500 per cent growth in delivery of pet-care products. Fresh food deliveries rose by 181 per cent while drink and snack deliveries climbed by 101 per cent and 82 per cent, respectively. Ele.me is owned by Alibaba, the parent company of the South China Morning Post.
Chinese hotpot restaurant chain adapts as coronavirus fears push communal meals off the menu
E-commerce providers used the opportunity to show goodwill and improve their relationship with customers and partners, analysts say.
Sofya Bakhta, marketing strategy analyst at the Shanghai-based Daxue Consulting, said the food delivery sector had made significant headway in reducing physical contact during the outbreak.
Delivery staff left orders in front of buildings, in lifts or temporary shelters as instructed by the clients as most properties no longer allowed them inside.
Some companies also adopted more hi-tech strategies.
In Beijing, Meituan used self-driving vehicles to deliver meals to contactless pickup stations. It also offered cardboard boxes to be used as shields aimed at preventing the spread of droplets among its clients while they ate in their workplaces. In Shanghai, Ele.me employed delivery drones to serve people under quarantine in the most affected regions.
Some companies even “shared” employees to meet the growing labour demand in the food delivery industry that could not be satisfied with their ordinary workforce, Bakhta said.
More employees from restaurants, general retail and other service businesses were “loaned” to food delivery companies, which faced manpower shortages during the outbreak, according to Sandy Shen, senior research director at global consultancy Gartner.
“These arrangements not only ensured the continuity of the delivery service but also helped businesses to retain employees during the shutdown,” she said.
A delivery man takes a break between orders in Wuhan, central China, during the lockdown. Photo: AFP
Mo Xinsheng became one such “on-loan” worker after customers stopped coming to the Beijing restaurant where he worked as a kitchen assistant.
“I wanted to earn some money and meanwhile help people who are trapped at home,” said Mo, who was hired as a delivery man.
But before he could start work he had to go through lengthy health checks before he was allowed into residential compounds.
He also had to work long hours battling the wind and cold of a Beijing winter and carrying heavy loads.
“I work about 10 hours every day just to earn several thousand yuan [several hundred US dollars] a month,” he said.
“Sometimes I almost couldn’t breathe while my hands were fully loaded with packages of rice, oil and other things.
“But I know I’m doing an important job, especially at a time of crisis,” Mo said, “It was not until then that I realised people have become so reliant on the home delivery system.”
Woman uses remote control car to buy steamed buns amid coronavirus outbreak in China
The delivery system has been improved by an effective combination of private sector innovation and public sector coordination, said Li Chen, assistant professor at the Centre for China Studies at Chinese University of Hong Kong.
“[In China,] government units and the Communist Party grass roots organisations have maintained fairly strong mobilisation capabilities to cope with emergencies, which has worked well in the crisis,” he said.
However, Liu, the Wuhan resident, said prices had gone up and vegetables were three times more expensive than they had been over Lunar New Year in 2019.
“There were few varieties that we could choose from, apart from potatoes, cabbage and carrots,” he said.
“But I’m not complaining. It’s good we can still get fresh vegetables at a difficult time. Isn’t it? After all, we are just ordinary people,” he said.
Image copyright GETTY IMAGESImage caption Most Chinese people don’t actually consume dogs and cats and never plan to
Shenzhen has become the first Chinese city to ban the sale and consumption of dog and cat meat.
It comes after the coronavirus outbreak was linked to wildlife meat, prompting Chinese authorities to ban the trade and consumption of wild animals.
Shenzhen went a step further, extending the ban to dogs and cats. The new law will come into force on 1 May.
Thirty million dogs a year are killed across Asia for meat, says Humane Society International (HSI).
However, the practice of eating dog meat in China is not that common – the majority of Chinese people have never done so and say don’t want to.
“Dogs and cats as pets have established a much closer relationship with humans than all other animals, and banning the consumption of dogs and cats and other pets is a common practice in developed countries and in Hong Kong and Taiwan,” the Shenzhen city government said, according to a Reuters report.
“This ban also responds to the demand and spirit of human civilization.”
Animal advocacy organisation HSI praised the move.
“This really could be a watershed moment in efforts to end this brutal trade that kills an estimated 10 million dogs and 4 million cats in China every year,” said Dr Peter Li, China policy specialist for HSI.
However, at the same time as this ruling, China approved the use of bear bile to treat coronavirus patients.
Bear bile – a digestive fluid drained from living captive bears – has long been used in traditional Chinese medicine.
The active ingredient, ursodeoxycholic acid, is used to dissolve gallstones and treat liver disease. But there is no proof that it is effective against the coronavirus and the process is painful and distressing for the animals
Brian Daly, a spokesman for the Animals Asia Foundation, told AFP: “We shouldn’t be relying on wildlife products like bear bile as the solution to combat a deadly virus that appears to have originated from wildlife.”
In February, Chinese authorities banned the trade and consumption of wild animals.
The move came after it emerged that a market in Wuhan selling wild animals and wildlife meat could have been the starting point for the outbreak of the new coronavirus, providing the means for the virus to travel from animals to humans.
News of this led the Chinese government to crack down strongly on the trade and on the markets that sold such products.
Image copyright GETTY IMAGESImage caption File photo of a wet market in China
There are now close to one million confirmed cases of the virus worldwide, and more than 47,000 deaths, according to a Johns Hopkins University tally.
In China alone, there are 81,589 confirmed cases and 3,318 deaths, said the National Health Commission.
Scientists and researchers are still no closer to finding out what the source of the virus is and how it could have spread to humans.
Chinese Vice Premier Hu Chunhua speaks at a meeting on restoring hog production, in Beijing, capital of China, Dec. 21, 2019. (Xinhua/Rao Aimin)
BEIJING, Dec. 22 (Xinhua) — China will take multiple measures to meet pork consumption demand in the upcoming New Year and Spring Festival holidays and strive to keep pork prices stable, according to a recent meeting on restoring hog production.
When addressing the meeting, Vice Premier Hu Chunhua said pork consumption would grow intensively during the first quarter and efforts must be made to prevent short supply.
He stressed the need to encourage hog producers to expand hog production, saying that more reserved pork and substitutes such as beef, mutton and poultry meat should be released to the market.
In the meantime, market supervision must be tightened to prevent hoarding, profiteering and price rigging.
Contingency plans need to be made to cope with adverse weather which might make it more difficult to increase pork supply, he said.
Social relief and aid shall be activated to help those who are financially challenged.
“To keep hog prices stable and secure pork supply, the most fundamental way is to restore hog production,” he said, urging local authorities to take effective measures to meet the goals.
China is set to release pork supplies from its central reserves as it moves to tackle soaring prices and shortages caused by an outbreak of swine fever.
A state-backed body will auction 10,000 tonnes of frozen pork from its strategic reserves on Thursday.
China, the world’s biggest producer and consumer of pork, has struggled to control the spread of the disease.
In a bid to stabilise prices, a state-backed group that manages the pork reserves will auction imported frozen pork from countries including Denmark, France, the US and UK.
Only 300 tonnes will be sold to each bidder at the auction.
Pork is used widely in Chinese festivals, and the auction comes as the country prepares to celebrate a week-long national holiday for the 70th anniversary of the People’s Republic of China.
Julian Evans-Pritchard, senior China economist at Capital Economics, said the auction would provide slight relief to the industry but would not do much to contain prices.
“In itself, I don’t think it will be able to prevent pork prices from rising further unless they manage to get the disease under control,” he said.
Beijing created its strategic pork reserve in 2007 but the size of the stockpile is not known.
Capital Economics estimates that at most, the stockpile would hold four days’ worth of pork supplies to feed China.
About 1.2 million pigs have been culled in China in an effort to halt the spread of swine fever since August 2018, according to data from the Food and Agriculture Organization, a UN agency.
In April, Rabobank estimated Chinese pork production would fall by up to 35% this year due to swine fever.
The supply shortage has sent pork prices soaring and has eaten into household incomes.
That poses a fresh challenge for the Chinese economy, which is already facing a slowdown and a trade war between Beijing and Washington.
Police investigation reveals animal had escaped from a nearby restaurant
The escaped crocodile was captured by police officers and taken to the local station. Photo: Handout
A security guard at a beauty spot in eastern China was shocked to discover a 2-metre (6ft 6in) crocodile while on his rounds in the early hours of Monday morning.
The animal was lying motionless on a road at Xinlonghu Park in Changzhou, Jiangsu province, with its jaws tied by a strip of cloth, when it was spotted by the security guard, who immediately called the police, according to the Modern Express newspaper.
It took a number of officers to capture the crocodile and take it to the local police station, where an investigation revealed the animal had escaped from a nearby restaurant. The animal was returned and the restaurant owner was “criticised” by police, who urged that a close eye be kept on the animal, the report said.
“They bought it from a farm somewhere as a food material to attract customers. It has been killed for crocodile meat dishes,” an officer told the South China Morning Post on Wednesday.
Crocodiles were once vegetarians – but it was just a phase
Police said it was fortunate that the crocodile had been caught before it had entered the park’s lake or caused any danger to people.
It is unclear what species the crocodile belonged to but China permits the commercial breeding and use of the critically endangered Siamese crocodile, as well as saltwater and Nile crocodiles, which are listed as least concern species.
A staff member of the restaurant, called No. 1 Lakeside, told the Post stewed crocodile meat was on the menu for 168 yuan (US$23.60) a serving, while stewed crocodile claw was also available at 258 yuan.
Crocodile appears in ancient Chinese medicine books as a treatment for respiratory illnesses and the meat has long been regarded as a delicacy, especially in southern China, such as Guangdong province. Crocodile skin also remains a popular material for luxury handbags and other leather goods.
In June, another crocodile, measuring about 1.5 metres, was found in a road puddle during a heavy rain in Wuhan, in the central province of Hubei, where many restaurants have crocodile meat on their menus, the Chutian Metropolis Daily reported.
In that incident it took three officers to capture the animal which was sent to a wildlife centre where a physical check-up showed it had been bred in captivity, most likely for food.
CHINDIA ALERT: You'll be living in their world, very soon 