10/04/2020
BEIJING (Reuters) – China will promote the sales of export products in domestic markets, as foreign trade faces unprecedented challenges due to the coronavirus pandemic, an assistant commerce minister said on Friday.
As the coronavirus spreads to almost all of China’s trading partners, the world’s second-largest economy is set to reach a grim milestone for full year growth, with the pace of expansion likely to be the slowest since the Cultural Revolution ended in 1976. And, the export sector is facing millions of job losses and factory shutdowns.
“Due to the rapid spread of the epidemic in the world, foreign demand has slumped and the biggest difficulty facing foreign trade companies is the plunge in orders,” said Ren Hongbin, the assistant minister at the Ministry of Commerce.
He said firms across the board have had their orders cancelled or delayed, and new orders are “very hard to sign”.
“The uncertainty about the pandemic has become the biggest uncertainty for foreign trade development.”
Forecasters expect China’s 2020 growth could be nearer the 2.0% mark – the slowest in over 40 years – due to the sweeping impact of the pandemic both at home and overseas. The economy grew 6.1% last year.
China’s overseas shipments fell 17.2% in January-February from the same period a year earlier, marking the steepest fall since February 2019. Imports sank 4% from a year earlier.
Among the government measures to support the sector, China is accelerating efforts to build online trade fairs and guiding exporters to work with e-commerce retailers for sales in domestic markets and coordinating with its trading partners to stabilise supply chains, said Ren.
The Canton Fair, China’s oldest and biggest trade fair due to take place online, will feature live-streaming services for participants, Li Xingqian, another commerce ministry official, told the same briefing. The fair was originally scheduled to begin on April 15, but was postponed due to the coronavirus outbreak.
China is willing to boost trade relations with other countries, including the United States, under the new circumstances, said Ren, adding that Beijing hopes to work together with Washington to promote bilateral trade.
Both countries have been engaged in a near two-year long trade war with tit-for-tat tariffs on each other’s goods, before negotiators called a truce with an interim trade deal in January.
Source: Reuters
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10/04/2020
BEIJING (Reuters) – China’s factory gate prices fell the most in five months in March, with deflation deepening and set to worsen in coming months as the economic damage wrought by the coronavirus outbreak at home and worldwide shuts down many countries.
The world’s second-largest economy is trying to restart its engines after weeks of near paralysis to contain the pandemic that had severely restricted business activity, flow of goods and the daily life of people.
Friday’s data from the National Bureau of Statistics suggested a durable recovery was some way off, with China’s producer price index (PPI) falling 1.5% from a year earlier, the biggest decline since October last year. It compared with a median forecast of a 1.1% fall tipped by a Reuters poll of analysts and a 0.4% drop in February.
Headline consumer inflation also eased somewhat last month, partly led by government control measures, while core prices remained benign, leaving more room for monetary easing, some analysts said.
The overall decline in the factory gate gauge was exacerbated by a slump in global oil and commodities prices, which filtered through to crude oil, steel and non-ferrous metal industries, the statistics bureau said in a statement accompanying the data.
“The issue of having more supply than demand, and persistently low oil prices, will intensify deflationary pressures,” said Yang Yewei, a Beijing-based analyst with Southwest Securities.
“Work resumptions on the production side are faster than the repair in demand. Downstream demand is recovering slowly and still remains weak,” he said.
The oil and gas extraction sector had the biggest year-on-year price fall of 21.7%, among the 40 major industrial sectors surveyed, deteriorating sharply from a 0.4% drop in the previous month.
The stringent travel and transport curbs have now been lifted across much of the country including Wuhan, the epicentre of the outbreak where the virus first emerged in late 2019. So far the virus has killed more than 3,300 and infected over 81,000 people in the country.
Analysts expect a deep first-quarter economic contraction in China and have grown increasingly pessimistic about the country’s prospects for 2020 due to the pandemic’s sweeping global impact.
Many economists and policymakers are forecasting a steep global recession this year as numerous countries are forced into lockdowns to contain the spread of the coronavirus, severely curtailing business activity in a major blow to jobs and incomes.
Worldwide, the virus has killed around 95,000 people and infected more than 1.5 million. Policymakers globally have responded to the crisis by launching an unprecedented package of stimulus measures, injecting trillions of dollars to backstop their economies that have been brought to a virtual standstill.
Beijing has also rolled out a series of fiscal and monetary support steps, and sources have told Reuters that policymakers are readying more stimulus in the coming months to stabilise growth and prevent mass unemployment.
China’s consumer prices rose 4.3% from a year earlier in March, compared with a 4.8% gain tipped by a Reuters poll and a 5.2% increase in February, as logistics and transport conditions improved and government price control measures kicked in.
But food prices still rose over 18% from a year earlier, led by a 116.4% jump in pork prices, the data showed. The virus outbreak has pushed up prices of some food items, such as pork and vegetables.
Core inflation – which excludes food and energy prices – remained benign last month at 1.2%，but it still edged up from 1% in February.
Source: Reuters
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09/04/2020
GENEVA (Reuters) – World Health Organization officials on Wednesday denied that the body was “China-centric” and said that the acute phase of a pandemic was not the time to cut funding, after U.S. President Donald Trump said he may put contributions on hold.
The United States is the top donor to the Geneva-based body which Trump said had issued bad advice during the new coronavirus outbreak.
U.S. contributions to WHO in 2019 exceeded $400 million, almost double the 2nd largest country donor, according to figures from the U.S. State Department. China contributed $44 million, it said.
“We are still in the acute phase of a pandemic so now is not the time to cut back on funding,” Dr Hans Kluge, WHO regional director for Europe, told a virtual briefing when asked about Trump’s remarks.
Trump told a news conference on Tuesday that the United States was “going to put a hold on money spent to the WHO,” however, he appeared to backtrack later when in response to questions he said: “We’re going to look at it.”
It was not immediately clear how Trump could “block” funding for the organization. Under U.S. law, Congress, not the president, decides how federal funds are spent.
Dr Bruce Aylward, senior advisor to the WHO Director-General, also defended the U.N. agency’s relationship with China, saying its work with Beijing authorities was important to understand the outbreak which began in Wuhan in December.
“It was absolutely critical in the early part of this outbreak to have full access to everything possible, to get on the ground and work with the Chinese to understand this,” he told reporters.
“This is what we did with every other hard-hit country like Spain and had nothing to do with China specifically.”
Aylward, who led a WHO expert mission to China in February, defended WHO recommendations to keep borders open, saying that China had worked “very hard” to identify and detect early cases and their contacts and ensure they did not travel.
“China worked very, hard very early on, once it understood what it was dealing with, to try and identify and detect all potential cases to make sure that they got tested to trace all the close contacts and make sure they were quarantined so they actually knew where the virus was, where the risk was,” he said.
“Then they made it very clear that these people would not and could not travel within the country, let alone internationally,” he added.
WHO Director-General Tedros Adhanom Ghebreyesus has been lavish in his praise of China from early in the outbreak, praising President Xi Jinping’s “rare leadership”.
David Heymann, a professor at the London School of Hygiene & Tropical Medicine who led WHO’s response to the 2003 SARS outbreak, said that any U.S. funding cut would be a huge blow.
“If the WHO loses its funding it cannot continue to do its work. It works on a shoe-string budget already,” Heymann said in London. “Of course it would be disastrous for the WHO to lose funding.”
Source: Reuters
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09/04/2020
TOKYO (Reuters) – Uncertainty over Japan’s economic outlook is “extremely high” as the coronavirus pandemic hits output and consumption, central bank Governor Haruhiko Kuroda said, stressing his readiness to take additional monetary steps to prevent a deep recession.
While aggressive central bank actions across the globe have eased financial market tensions somewhat, corporate funding strains were worsening, Kuroda told a quarterly meeting of the Bank of Japan’s regional branch managers on Thursday.
“The spread of the coronavirus is having a severe impact on Japan’s economy through declines in exports, output, demand from overseas tourists and private consumption,” he said.
Japan recorded 503 new coronavirus infections on Wednesday – its biggest daily increase since the start of the pandemic – as a state of emergency took effect giving governors stronger legal authority to urge people to stay home and businesses to close.
In contrast to stringent lockdowns in some countries, mandating fines and arrests for non-compliance, enforcement will rely more on peer pressure and a deep-rooted Japanese tradition of respect for authority.
The balancing act underscores the difficulty authorities have in trying to contain the outbreak without imposing a mandatory lockdown that could deal a major blow to an economy already struggling to cope with the virus outbreak.
Hideaki Omura, the governor of the central Japan prefecture of Aichi, said he would declare a state of emergency for his prefecture on Friday.
Omura said Aichi, which includes the city of Nagoya and hosts Toyota Motor Corp, was talking with the central government about being included in the national state of emergency as well, but felt he could not wait any longer to restrict movement.
“Looking at things the past week and watching the situation – the rise in patients, the number without any traceable cause – we judged that it was a very dangerous situation and wanted to make preparations,” he told a news conference.
Even with less stringent restrictions compared with other countries, analysts polled by Reuters expect Japan to slip into a deep recession this year as the virus outbreak wreaks havoc on business and daily life.
Shares of Oriental Land Co (4661.T) fell on Thursday after the operator of Tokyo Disneyland said it would keep the amusement park shut until mid-May.
Entertainment facility operator Uchiyama Holdings (6059.T) said it was closing 43 karaoke shops and 11 restaurants until May 6.
“For the time being, we won’t hesitate to take additional monetary easing steps if needed, with a close eye on developments regarding the coronavirus outbreak,” Kuroda said.
Kuroda’s remarks highlight the strong concern policymakers have over the outlook for Japan’s economy and how companies continue to struggle to generate cash, despite government and central bank promises to flood the economy with funds.
At its policy meeting later this month, the BOJ is likely to make a rare projection that the world’s third-largest economy will shrink this year, sources have told Reuters.
The BOJ eased monetary policy in March by pledging to boost purchases of assets ranging from government bonds, commercial paper, corporate bonds and trust funds investing in stocks.
The government also rolled out a nearly $1 trillion stimulus package to soften the economic blow.
Source: Reuters
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07/04/2020
- Some 460,000 Chinese firms shut in the first quarter amid fallout from the coronavirus
- Registration of new firms between January and March fell 29 per cent from a year earlier
Many Chinese businesses are struggling from the economic fallout of the coronavirus. Photo: Reuters
More than 460,000 Chinese firms closed permanently in the first quarter as the coronavirus pandemic pummeled the world’s second largest economy, with more than half of them having operated for under three years, corporate registration data shows.
The closures comprised of businesses whose operating licenses had been revoked, as well as those who had terminated operations themselves, and included 26,000 in the export sector, according to Tianyancha, a commercial database that compiles public records.
At the same time, the pace of new firms being established slowed significantly. From January to March, around 3.2 million businesses were set up, a 29 per cent drop from a year earlier.
Most of these new companies were in traditional centres of economic power, such as Guangdong province in southern China, and close to half of them were in distribution or retail.
Coronavirus: Is the gig economy dead, and should the self-employed worry?
The number of business closures underlines the challenges facing China as it tries to revive its economy, which is at risk of a contraction in the first quarter for the first time since 1976.
“China has managed to get the Covid-19 outbreak largely under control and domestic supply disruptions have now mostly dissipated,” Yao Wei and Michelle Lam, economists from French bank Societe Generale, said in a recent note.
“However, there are signs of lasting damage to domestic demand, and on top of that the external shock resulting from widespread lockdowns in other major economies is arriving fast and furious.”
In
Dongguan, a once thriving industrial hub in the Pearl River Delta, rows of empty shops and closed factories are becoming a noticeable feature of the landscape as companies grapple with slumping international demand.
Coronavirus: Chinese companies cut salaries and staff in industries hit hardest by Covid-19
In March, a local export-oriented manufacturer of tote bags and toys in the city, Dongguan Fantastic Toy Company, collapsed after overseas orders dried up, leaving some workers with unpaid salaries, the local labour authority said last month. The government has ordered the factory’s landlord to pay the outstanding wages.
Chinese business owners who can no longer afford to maintain operations face a number of hurdles before they can walk away from a company.
If an insolvent firm wants to cancel its company registration, it needs to go through bankruptcy procedures or show a liquidation report confirming it had no unpaid debt or other obligations.
Once shareholders or creditors file for bankruptcy, it can take months for courts to accept the case, followed by a long process of verification, creditors’ meetings and asset sales, said Li Haifeng, a partner at Baker McKenzie FenXun.
A new phase of coronavirus blame game: what is the legacy of Covid-19 on global supply chains?
“I expect a surge shortly after the situation settles down. We know many enterprises are already on the verge of bankruptcy. It’s just that they don’t have to declare or file for bankruptcy immediately,” Li said, adding he had received many queries on the matter in recent months.
Given the costly nature of bankruptcy proceedings, particularly for small businesses
struggling with cash flow or without sufficient assets, the number of bankruptcy filings this year would not be high, said Zhu Bao, a Beijing-based lawyer.
Fears over a growing number of companies going bust also appears to have played some part in Chinese courts rejecting and delaying bankruptcy filings, according to lawyers and official documents.
Creditors who filed on behalf of suppliers that helped contain the coronavirus or companies on the brink of bankruptcy as a direct result of the pandemic usually had their claims knocked back, dozens of court documents filed over the past two months showed.
We know many enterprises are already on the verge of bankruptcy. It’s just that they don’t have to declare or file for bankruptcy immediately – Li Haifeng
The courts in these cases encouraged the creditors to reconcile with the struggling firms and ride out the difficulties.
This – along with disruptions to court proceedings due to virus lockdowns – helped slow the review of bankruptcies in Chinese courts to 1,770 in February and March, from 2,160 filings in January, according to the national enterprise bankruptcy information disclosure platform.
“The delay and rejection of taking corporate bankruptcy cases is certainly intended to keep the economy going. Too many bankruptcies cases do not do much to help economic recovery,” Zhu said.
China’s central leadership has maintained it wants to hit economic targets for this year, even as the country braces for a possible second wave virus outbreak.
The delay and rejection of taking corporate bankruptcy cases is certainly intended to keep the economy going – Zhu Bao
The odds of a first quarter economic contraction for China are growing, however, and economists are debating whether it still makes sense for Beijing to set a specific gross domestic product (GDP) growth target for 2020.
Ma Jun, an academic member of the People’s Bank of China’s monetary policy committee, is one prominent voice that has suggested Beijing drop a set target amid the uncertainty caused by the virus outbreak.
However, others like Yu Yongding, an economist from Chinese Academy of Social Sciences, said it was necessary to anchor the country’s economic expansion, though the government should be realistic about the goal, reported the Beijing-based financial media group Caixin.
Source: SCMP
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07/04/2020
- 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
spreading in the central Chinese city he started to stock up on supplies such as rice, oil, noodles and dried pork and fish.
These preparations spared the 66-year-old from some of the early panic when
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
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.
Source: SCMP
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07/04/2020
BEIJING (Reuters) – Mainland China reported no coronavirus deaths for the first time since the pandemic began, and a drop in new cases, a day before the central city of Wuhan, where the virus emerged late in December, is set to lift its lockdown.
China had 32 new infections by Monday, down from 39 a day earlier, the National Health Commission said.
For the first time since the commission began publishing nationwide data in late January, Hubei’s provincial capital of Wuhan saw no new deaths, joining the rest of mainland China, which has recorded none since March 31.
Wuhan, a city of 11 million that reported only two new infections in the past fortnight is due to allow residents to leave the city on Wednesday, for the first time since it was locked down on Jan. 23 to curb the spread of the virus.
With mainland China well past February’s peak of infections, authorities have turned their attention to imported cases and asymptomatic patients, who show no symptoms but can still pass on the virus.
Total infections in mainland China stood at 81,740 on Monday with 3,331 deaths, the commission said. It reported 30 new asymptomatic cases, nine involving incoming travellers. Of the new asymptomatic cases, 18 were in Hubei.
By the end of Monday, 1,033 asymptomatic patients were under medical observation.
TIGHTER LAND BORDERS
Overseas arrivals made up all 32 of the new cases with symptoms, down from 38 a day earlier. Total imported infections stand at 983, the commission said.
China faces the “dual risks” of imported infections and domestic cluster outbreaks, a commission spokesman told a briefing on Tuesday.
The northeast province of Heilongjiang reported 20 new cases, all in Chinese citizens returning from neighbouring Russia. It had reported 20 new infections on Sunday, all also cases imported from Russia.
On Tuesday, the Chinese consulate in the Russian city of Vladivostok near the border with China said it strongly reminded Chinese nationals not to return home through the border port of Suifenhe, which is to be closed to all arrivals from Tuesday.
China has shut its borders to foreigners as the virus spread globally, though most imported cases have involved Chinese nationals returning from overseas.
The number of inbound travellers through airports is fewer than 3,000 a day, down from about 25,000 in late March, before China slashed the number of international flights.
It also started testing all international arrivals for the virus this month.
Source: Reuters
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06/04/2020
- Embassy says those flown back must pay for themselves, and praises the US health system, in a departure from the war of words with Washington
- More than a million Chinese students remain overseas, but China is on alert against the threat of imported infections
China has drastically cut flights to try to prevent people who arrive from abroad importing the coronavirus. Photo: AFP
Chinese students could be flown home from
coronavirus hotspots such as the United States but will have to pay their own expenses, amid efforts by Beijing to persuade some to remain overseas rather than risk bringing the infection with them.
A statement posted on the website of China’s Washington embassy on Monday said that the Chinese government was aware that many school and university students had encountered difficulties in travelling back to China and was taking steps to arrange charter flights for those who needed to return urgently.
With the initial coronavirus outbreak appearing to have been largely contained in mainland China, some Chinese students have travelled home despite soaring air ticket prices and the requirement that those who have been overseas enter quarantine.
Students brought back on charter flights would still need to pay for the ticket and the costs of the mandatory 14-day quarantine upon arrival in China.
Trump says US approaching a ‘horrendous’ time as coronavirus death toll rises
More than 1.6 million Chinese are studying overseas, including about 410,000 in the US. At least 1.42 million Chinese students remained overseas, vice foreign minister Ma Zhaoxu said on Thursday.
Having initially boasted of its success in stopping the virus, Beijing has become notably cautious in recent weeks about welcoming overseas students back home, especially with imported cases continuing to rise.
China’s foreign ministry and its overseas missions have urged students considering travelling home to exercise caution. The embassy in the US issued a notice on Friday speaking highly of the American medical system and its response to the pandemic, in a marked departure from Beijing’s narrative, which has included pinning the blame for the pandemic on the United States.
Friday’s embassy notice also dismissed rumours that Chinese students had been targeted because of the coronavirus during the closures of universities, and pledged help if students had trouble communicating with universities about campus accommodation.
China advises foreign diplomats to stay away from Beijing until May 15
3 Apr 2020
Ma said that most overseas students had heeded his government’s advice and chosen not to go back to China, but an online survey late last month that was cited by Caixin magazine on Saturday showed nearly 60 per cent of Chinese students in the US wanted to return home.
Most of the 4,000 students polled said they were unable to make the trip because of concerns about contracting the coronavirus during the journey and air fares that had more than doubled recently. Both China and the US have drastically cut back long-haul international flights.
After weeks stranded in Peru, 65 Hongkongers return home
Students under 18 years of age who want to return to China are required by the embassy to register online.
The initial evacuation plan announced on Monday proposed to prioritise school-age children whose parents were not in the US with them. The proposed arrangement appeared to include students from Hong Kong, Macau and Taiwan.
Source: SCMP
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04/04/2020
- The US saw 1,169 deaths in 24 hours and its infections are 20 per cent of the global total
- China to hold day of mourning for victims; Singapore announces fifth death and school closures; Boris Johnson says he’s still ill; Angela Merkel ends quarantine
A group of nurses gather in the Bronx, New York, for a strike about the lack of personal protective equipment, on April 2, 2020. Photo: EPA-EFE
The number of confirmed
coronavirus cases around the world soared past one million on Thursday and deaths topped 50,000 as
Europe reeled from the pandemic and the
reported the highest daily death toll so far of any country.
Despite more than half the planet imposing some form of lockdown, the virus claimed thousands more lives, with the US, Spain and Britain seeing the highest number of daily fatalities yet.
Covid-19 is currently spreading the most rapidly in the US, where there have been 243,453 infections and 5,926 deaths, according to a tally by Johns Hopkins University.
The US saw 1,169 deaths in 24 hours, the highest one-day toll recorded in any country since the global pandemic began. The grim record was previously held by Italy, where 969 people died on March 27.
Here are other developments:
Singapore shuts schools, workplaces in ‘circuit-breaking’ move
Singapore’s coronavirus case number hits 1,000 after city state reports biggest single-day spike
Singapore Prime Minister Lee Hsien Loong on Friday afternoon announced most workplaces would be shut from April 7, and schools would be closed from April 8, in its
to battle the coronavirus pandemic.
The city state has 1,114 infections and five people have died. More than 200 have recovered.
Essential services such as food establishments, markets and supermarkets, clinics, hospitals, utilities, transport and banking services will remain open.
Coronavirus: what’s behind Singapore’s U-turn on wearing masks?
Lee on Friday said instead of tightening measures incrementally over the next few weeks,
Singapore should “make a decisive move now, to pre-empt escalating infections”.
“Looking at the trend, I am worried that unless we take further steps, things will gradually get worse, or another big cluster may push things over the edge,” Lee said, describing the new measures as a “circuit breaker”.
Medical experts say the stringent measures require the cooperation of citizens to stay at home, given that local infection clusters have ballooned from six at the end of February to more than 20 currently.
People stand behind markers as they practice physical distancing while queuing up to buy food at a Singapore supermarket on April 3, 2020. Photo: Reuters
The Lion City has launched a website to help individuals with symptoms that might be related to Covid-19 decide whether they should see a doctor or not.
On the
Covid-19 Symptom Checker website, individuals will be prompted to answer a short list of questions including their age, if they have any chronic diseases, if they have travelled outside Singapore in the past 14 days, or have been in touch with a suspected or confirmed Covid-19 case.
They will also be asked to choose which symptoms they are experiencing from a predetermined list including symptoms such as cough, difficulty breathing and the loss of taste/smell. The site will then recommend what the person should do next. This includes whether they should see a doctor or continue to monitor their symptoms.
China to hold day of mourning for Covid-19 victims
At 10am on April 4, 2020, the public will be asked to observe three minutes of silence. Photo: EPA-EFE
Flags will be flown at half-mast across the country and at embassies overseas, while all public entertainment will be halted for the day, said the State Council, China’s cabinet, on Friday.
At 10am, the public will be asked to observe three minutes of silence, during which sirens will blast out across the country and the owners of cars and boats should sound their vehicles’ horns, the council said.
Saturday also coincides with Ching Ming, or the Tomb-sweeping Festival, when Chinese traditionally gather to remember their ancestors.
China to stage day of mourning for the thousands lost to Covid-19
Mainland
China on Friday reported 31 new confirmed coronavirus cases, including two locally transmitted infections, the country’s National Health Commission said.
It also reported four new deaths as of Thursday, all in Wuhan, the city where the outbreak began, the commission said in a statement. The total number of infections now stands at 81,620 and 3,322 deaths have been reported from mainland China to date.
The commission said 60 new asymptomatic coronavirus patients were also reported on Thursday.
UK’s Boris Johnson still ill with virus fever
British Prime Minister Boris Johnson remains in isolation with a high temperature, more than a week after testing positive for coronavirus.
Johnson made the announcement in a video posted on Twitter on Friday, saying that even after seven days, “alas I still have one of the symptoms, a minor symptom: I still have a temperature”.
“In accordance with government advice I must continue my self-isolation,” he said.
As virus rages, British love for NHS could make or break Boris Johnson
3 Apr 2020
With coronavirus deaths still rising, the PM is anxious to drum home his message that Britons must obey government orders to stay in their homes as much as possible.
On March 23 he ordered a national lockdown, with the closure of schools, stores, restaurants and leisure facilities. Under emergency laws, police have the power to fine individuals who flout the rules and break up gatherings of more than two people in public.
Germany to crack down on people flouting physical distancing rules
Police officers ask people to disperse as they gather at a park in Berlin, Germany, on March 28, 2020. Photo: Reuters
People in Germany risk being fined up to €500 (US$540) for standing too close to each other from Friday, as officials crack down on people flouting rules brought in to control the coronavirus outbreak.
Chancellor Angela Merkel’s government has ordered people not leave their homes unless they have an exceptional reason such as grocery shopping, exercise or medical appointments.
Gatherings of more than two people are banned and a distance of at least 1.5 metres must be kept from others at all times.
Local governments have the power to set fines for transgressors, with city officials in Berlin saying their fines would be as high as 500 euros. Similar announcements have come from across Germany’s 16 states.
Bow ties to face masks: German firms shift gears in virus crisis
According to figures by the Robert Koch Institute (RKI) on Friday, Germany has recorded more than 79,000 cases of the novel
coronavirus, and 1,017 deaths, although RKI president Lothar Wieler warned on Friday that the actual number of casualties could be much higher.
“We won’t manage to test every single person … I assume we will have more deaths than are officially recorded,” he said.
Wieler said the mortality rate would “continue to rise” in Germany. German minister’s suicide linked to coronavirus crisis
Meanwhile, Merkel on Friday left her Berlin home for the first time in almost two weeks, after she was forced into quarantine following contact with an infected doctor.
Merkel was tested several times, with all tests coming back negative.
The 65-year-old leader has returned to her office, where she will continue to observe social distancing rules and lead the country via video and audio conferencing, her spokesman said.
Spain records over 900 virus deaths
Members of the Red Cross prepare food for families in need at a food bank in Ronda, Spain, on April 3, 2020. Photo: Reuters
on Friday recorded over 900 new coronavirus deaths over the past day, bringing the number of casualties to 10,935, in the first decline in new Covid-19 deaths in four days.
The country has the world’s second-highest death toll after
Italy, but health ministry figures confirm a consistent downward trend in the rate of new cases and fatalities.
The 932 deaths on Friday was a smaller gain than Thursday’s 950, according to Health Ministry data. The number of confirmed cases also increased by less than the previous day, with 7,472 new infections taking the total to 117,710.
Why Europe’s hospitals – among world’s best – are struggling with virus
Prime Minister Pedro Sanchez’s government has been struggling to bring the virus under control. Hospitals are overwhelmed, nursing homes have been especially hard hit in a nation with one of the world’s oldest populations, and the army has been mobilised.
Sanchez may extend the current four-week lockdown for another two weeks beyond April 11, Spanish media reported on Friday. The stay-at-home order limits people’s movement to shopping for food and essentials, while some workers are also allowed to circulate.
Passengers disembark from virus-hit cruise ship in Florida
The Zaandam cruise ship docked in Florida on Friday. Photo: TNS via ZUMA Wire/dpa
Passengers from an ill-fated cruise were carefully freed from their cabins and allowed to disembark on Friday, following the removal of 14 critically-ill people who were wheeled off to Florida hospitals bracing for an onslaught of coronavirus patients.
The exodus from the Zaandam and its sister ship the Rotterdam, both operated by Holland America Line, was expected to continue throughout the day.
Floridians were getting off first, followed by other passengers. Buses were taking people healthy enough to travel directly to the airport, where they will board chartered flights home without going through the terminal.
Coronavirus nightmare for passengers stuck on MS Zaandam ‘death ship’
“This is a humanitarian situation, and the County Commission’s top priority is protecting our 1.9 million residents while providing a contained disembarkation option for people on board who need to get safely home,” Broward County Mayor Dale Holness said in a statement late on Thursday.
Four people have died on the Zaandam, for reasons not yet disclosed. All told, 107 passengers and 143 crew reported flu-like symptoms during the voyage, but many have since recovered.
It was unclear when the bodies of four passengers who died on the Zaandam would be removed from the ship, which set sail on March 7, the day before the US State Department warned people against cruising during the pandemic.
South Korea’s infections top 10,000
South Korean hospital’s ‘phone booth’ coronavirus tests
on Friday said the number of confirmed coronavirus cases in the country has surpassed 10,000, with 174 deaths linked to Covid-19, the disease caused by the new virus.
The Health and Welfare Ministry reported 86 new coronavirus infections over 24 hours to the end of Thursday, taking the total to 10,062 cases. It also logged five more deaths.
The numbers confirmed an encouraging stabilisation of numbers, which have hovered around the 100 mark for the past three weeks, a clear downward trend which began in March after numbers peaked at the end of February with over 900 cases recorded in a day.
South Korea’s virus response is the opposite of China’s – and it works
For a fourth straight day, more new cases were recorded from Seoul and the surrounding Gyeonggi province, than in what has so far been the outbreak epicentre in the country – North Gyeongsang province and city of Daegu – with the capital area registering 34 new cases, and the latter recording 23.
Imported cases in patients recently returned from abroad also continued to increase, with 22 new infections bringing the total to 264.
Japan to give US$2,800 payouts to households
A man seen in a protective mask at Shinjuku in Tokyo, Japan, on April 2, 2020. Photo: EPA-EFE
Japanese ruling party executive Fumio Kishida said on Friday he has agreed with Prime Minister
Shinzo Abe to offer 300,000 yen (US$2,800) in cash payments per household that suffers a certain degree of income declines from the
coronavirus pandemic.
About 10 million of Japan’s 58 million households are expected to be eligible for the cash programme, a key pillar of an emergency economic package that the government plans to compile possibly on Tuesday.
The relief measure will be funded by a supplementary budget for this fiscal year that the government wants to pass in parliament before Japan’s Golden Week holiday starts in early May.
Coronavirus: Tokyo’s nightlife districts linked to rise in cases
The government will not set a household income limit for the cash handout, which will be tax free, officials said.
“If we set an income limit, we would have to check individual incomes, which would take a lot of time,” Yasutoshi Nishimura, minister in charge of economic and fiscal policy, told a press conference. “Instead of that, we’ll come up with an unprecedented way (to judge who should receive cash).”
Nishimura said recipients will be limited to those who are facing livelihood difficulties, and that civil servants, politicians and major corporate executives who have not been significantly affected by the economic impact of the virus outbreak, for example, will be excluded from the scheme.
Japan weighs cost of Tokyo lockdown and Wagyu beef coupons for households
Abe said the government will provide cash “as soon as possible” not only to households but also to small-and mid-sized business operators that have seen their revenues drop.
Abe has said the package to tackle the
coronavirus will be larger than the 56.8 trillion yen emergency package compiled in April 2009 following the previous year’s global financial crisis.
Indonesian Muslims banned from travelling home for Eid al-Fitr
A police officer in a coronavirus helmet sprays disinfectant at a motorcycle in East Java, Indonesia, on April 3, 2020. Photo: AP
Islamic scholars in Indonesia on Friday issued an edict to forbid people from travelling home for Eid al-Fitr, the festival marking the end of the Muslim fasting month of Ramadan, as the country recorded nearly 2,000 infections during the
The fatwa was issued by the Indonesian Council of Ulema a day after President
decided to allow millions of Muslims to travel to celebrate Eid in their hometowns next month, despite fears that they could spread the Covid-19 disease.
“The virus spreads very easily. Doing something like that at a time of a pandemic is haram [forbidden],” the council’s sectary general Anwar Abbas said.
Eid al-Fitr is expected to start on May 23, depending on the sighting of the new moon.
Indonesia frees 18,000 prisoners as virus death toll surges to 170
2 Apr 2020
Indonesia confirmed 196 new infections on Friday, bringing the total number of cases to 1,986.
The death toll rose to 181 after 11 new deaths, making Indonesia the the country with the highest number of fatalities in Asia outside China.
The State Intelligence Agency warned that the outbreak in Indonesia could peak in June with more than 105,000 cases.
Thailand’s night curfew to begin; people banned from making virus pranks
An officer checks the temperature of a passenger in a bus at a health checkpoint in Bangkok, Thailand, on April 3, 2020. Photo: AP
Thailand will on Friday night begin a daily nationwide curfew to try to curb the spread of the coronavirus.
The 10pm-4am curfew, which will run indefinitely, is the latest measure by the government to curb gatherings and have people stay at home as much as possible.
Exceptions include those people transporting medical supplies and health workers travelling to and from work, Prime Minister Prayuth Chan-ocha said.
“We prioritise health over freedom,” Prayuth said. “We might not feel as comfortable as before, but we all need to adapt for survival and have social responsibility, so that we can make it through this crisis.”
In a televised address, Prayuth also asked all Thai citizens abroad to “delay” returning to
until after April 15 in a bid to stop imported cases.
Thai king remains in Germany during pandemic, prompting criticism online
Thais have also been banned from making public gatherings, in an order signed on Friday by defence forces chief General Pornpipat Benyasri.
The order prohibits people from public gatherings, carrying out activities, or gathering for unlawful purposes in a manner that risks spreading the coronavirus.
It also bans any act that aggravates people’s suffering and pranks to spread the virus. Family gatherings at residences and civic activities carried out according to safe social distancing guidelines are allowed.
Violation of the order carries a maximum penalty of two years’ imprisonment and a fine of 40,000 baht (US$1,215).
Pakistan’s mosques remain open amid shutdowns
Coronavirus: In Pakistan food aid is distributed to the poor in Karachi
Mosques in Pakistan were allowed to remain open on Friday, when adherents gather for weekly prayers, even as much of the country had shut down.
Pakistan, with 2,450 confirmed coronavirus cases and 35 deaths, has been sharply criticised for moving too slowly to curb large gatherings.
Prime Minister Imran Khan was relying on restricting the size of congregations attending mosques and advice to stay at home from religious groups like the country’s Islamic Ideology Council.
Coronavirus: Pakistan quarantines pilgrims returning from Iran
However, some provinces had issued their own lockdown orders to prevent Muslims from gathering for Friday prayers.
In southern Sindh province, a complete lockdown was being enforced from noon until 3pm, the time when the faithful gather for prayers. Anyone found on the streets would be arrested, according to the provincial local government minister in a statement.
In eastern Punjab province, where 60 per cent of Pakistan’s 220 million people live, checkpoints had been set up in major cities stopping people from congregating.
Tunisia ‘robocop’ enforces virus lockdown
The PGuard robot patrols the streets of Tunis, in Tunisia, on April 1, 2020. Photo: EPA-EFE
Tunisia’s interior ministry has deployed a police robot to patrol the streets of the capital and enforce a lockdown as the country battles the spread of coronavirus.
Known as PGuard, the “robocop” is remotely operated and equipped with infrared and thermal imaging cameras, in addition to a sound and light alarm system.
In images and a soundtrack posted on the interior ministry’s website last month, PGuard calls out to suspected violators of the lockdown: “What are you doing? Show me your ID. You don’t know there’s a lockdown?”
The PGuard robot checks the exit permit of a citizen in Tunis on April 1, 2020. Photo: EPA-EFE
Tunisia has been under night-time curfew since March 17 and authorities imposed stricter lockdown orders from March 22.
Fourteen people have died from coronavirus in Tunisia, where 455 confirmed cases have tested positive for the disease.
The robot’s Tunisian creator Anis Sahbani said the machine was first produced in 2015 essentially to carry out security patrols and it also operates autonomously through artificial intelligence.
The robot, built by Sahbani’s Enova Robotics firm, costs between 100,000 and 130,000 euros (US$100,000 and $140,000), and has been selling mostly overseas to companies for security uses.
France death tally passes 5,000
A cashier runs a store counter covered up with a plastic barrier in Paris, France, on April 3, 2020. Photo: Xinhua
reported a jump in coronavirus deaths on Thursday as the country included fatalities in some nursing homes for the first time. Still, a decline in intensive-care admissions suggest the country’s lockdown is starting to slow the pace of the outbreak.
The health ministry reported 471 new hospital deaths from the coronavirus on Thursday. In addition, it reported 884 deaths in a partial count from nursing homes, bringing the total number to 5,387. Nursing homes were not previously included in the statistics.
France is the third-hardest hit country in
in number of deaths, behind Italy and Spain. The number of confirmed cases is now at 59,105.
Italy reported another 760 fatalities on Thursday. Its death toll, already the world’s highest, now stands at 13,915. Total infections, including recoveries and deaths, have reached 115,242.
Spain reported 950 more deaths from the coronavirus, the most in a single day, taking the total to 10,003.
India plans staggered exit from lockdown
Indian policemen in Hyderabad, India, wear virus-themed helmets for a campaign to raise awareness at preventing the spread of the coronavirus on April 2, 2020. Photo: AP
said on Thursday, as officials battle to contain the country’s biggest cluster of coronavirus infections in the capital, New Delhi.
The shutdown, which has brought Asia’s third-largest economy to a shuddering halt, had been due to end on April 14.
Modi ordered India’s 1.3 billion people indoors to avert a massive outbreak of
infections, but the world’s biggest shutdown has left millions without jobs and forced migrant workers to flee to their villages for food and shelter.
After violence, Indian police try humour to enforce virus lockdown
He told state chief ministers that the shutdown had helped limit infections but that the situation remained far from satisfactory around the world and there could be a second wave.
“Prime minister said that it is important to formulate a common exit strategy to ensure staggered re-emergence of the population once lockdown ends,” the government quoted him as saying in a video conference.
India has had 2,069 confirmed infections, of whom 53 have died, low figures by comparison with the US, China, Italy and Spain. But the big worry is the
because of a gathering held by a Muslim missionary group last month that has spawned dozens of cases across the country, officials said.
Five-minute virus tests ‘may give inaccurate results’
A Chinese drug and diagnostic firm has cautioned that the slew of new test kits that promise to detect the
coronavirus in just a few minutes may not be as accurate as conventional kits, a potential setback for countries seeking to rapidly test their citizens.
“Such rapid testing is not as accurate as the traditional nucleic acid test that takes about two hours to turn out results,” Wu Yifang, Shanghai Fosun Pharmaceutical Group’s chief executive officer, said. The drugmaker also has a swift testing technology but it’s working on making the results more accurate, according to Wu.
Coronavirus nightmare of China’s ‘recovered’ patients
Abbott Laboratories unveiled a coronavirus test on March 28 that can confirm if someone is infected in as little as five minutes. Shenzhen Bioeasy Biotechnology has been supplying its version of rapid testing kits to the
European Union even before getting regulatory approval in
China for domestic use.
The faster and easy-to-deploy diagnostic kits seemingly save time and resources for nations under pressure to widen their testing efforts. But there have been reports of faulty kits, like those bought by Spain and the Czech Republic.
Shenzhen Bioeasy, which sold thousands of test kits to Spain, said in a statement on March 27 that false results could be due to improper use of its kits or faulty specimen collection.
Trump tests negative again
US President Donald Trump was was first tested last month after coming into contact with a Brazilian official who later tested positive. Photo: UPI/Bloomberg
US President Donald Trump on Thursday was tested again to determine whether he had been infected by the coronavirus, and the test came back negative, the White House said.
A letter from Trump’s doctor, Sean Conley, said Trump had undergone what was a second test for coronavirus. He was tested last month after coming into contact with a Brazilian official who later tested positive.
Trump to urge Americans to wear masks when outside
Conley said in a letter released by the White House that Trump was tested with a new, rapid point-of-contact test and the result came back in 15 minutes.
“He is healthy and without symptoms,” Conley said.
Trump said Americans should wear protective face masks if they wish. “If people want to wear them, they can” he said. Scarves work just as well, he said.
NRA sues NY governor over closure of gun stores
A pedestrian pushes a stroller as people wait in line outside a gun store to buy supplies on March 15, 2020. Photo: Reuters
The National Rifle Association (NRA) sued New York Governor Andrew Cuomo for closing gun shops during the coronavirus pandemic, saying the restriction is unconstitutional and leaves citizens defenceless while prisoners are being released early as a result of the crisis.
Cuomo’s March 20 executive order that included firearms retailers as non-essential businesses, which must close is a “pointless and arbitrary attack on the constitutional rights of New York citizens and residents,” the NRA said in a complaint filed late Thursday in Syracuse, New York.
New York ordered most businesses to close to prevent the spread of the virus, but deemed grocery stores, liquor stores, pharmacies and restaurants that do take-out as essential and allowed them to remain open.
The New York lawsuit follows similar action the NRA took in Northern California, where it sued several cities including San Jose for ordering gun stores to close.
Corona beer producer halts brewing
The Mexican brewer of Corona beer said on Thursday it was suspending production because of the health emergency in the country over the Covid-19 pandemic.
Grupo Modelo said the measure was in line with the Mexican government’s order to suspend all non-essential activities until April 30 to slow the spread of coronavirus.
“We are in the process of lowering production at our plants to the bare minimum,” the company said in a statement, adding it would complete the suspension in the following days.
Mexico’s government has said that only key sectors such as agribusiness will be able to continue to function.
US stops issuing passports, except in emergencies
The US State Department will not be processing new passports and renewals except for emergency cases because of the coronavirus pandemic, the agency’s website said.
“Due to public health measures to limit the spread of Covid-19, effective March 20, 2020, we are only able to offer service for customers with a qualified life-or-death emergency and who need a passport for immediate international travel within 72 hours,” said a March 27 online statement.
How elite US university students brought coronavirus home from campus
Passport applications received on or before March 19 will be processed.
Travellers who paid extra for expedited service can expect to receive their passport in the next two to three weeks.
If you applied in-person at a passport agency or centre before March 19, the agency will contact you about getting your passport.
Source: SCMP
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01/04/2020
- The coronavirus has fuelled explosive growth of the app, which now has 800 million users, few of whom will know it is owned by China’s ByteDance
- While videos of dancing teens may seem benign, there are growing fears in America it could be a Trojan Horse for mass surveillance by Beijing
TikTok is seen by some as the latest front in the US-China tech war. Photo: Shutterstock
Y
our average, not-so-hip adult would have probably drawn a blank at the mention of
not long ago – unless they have a child addicted to the wildly popular app, on which users make and share short, amusing videos.
It has grown explosively since its 2016 launch, with 800 million monthly active users now – 300 million of them outside China in places such as India (120 million) and the
(37 million). And many have no idea it is owned by a Chinese company, ByteDance.
The first Chinese app to mount a real global challenge to Facebook and Instagram, it is seen as one of the shiniest new weapons in the US-China technology war. And a boost, perhaps, to Chinese soft power.
TikTok, the missing link between Hong Kong and Indian protesters?
9 Feb 2020
It experienced a growth spurt in 2019 that analysts predicted would slow a little this year. That, however, was before the
coronavirus, which seems to be giving the app a bump, especially beyond its core teenage fan base.
As pandemic fears rise and millions are stuck indoors, major Hollywood celebrities such as Jennifer Lopez, 50, have taken to posting their own all-singing, all-dancing videos, which then go viral on other media platforms.
Even the
World Health Organisation has jumped on the bandwagon, joining the app in late February to share public health advice.
The TikTok logo on a smartphone. Photo: Getty Images
But to some, the growth of TikTok is far from benign.
Privacy advocates and several US congressmen want to rein in the app over concerns it may censor and monitor content for the Chinese government, and be used for misinformation and election interference. This despite the fact that TikTok keeps its servers outside China and swears it will not hand over user data.
Are these fears justified – or fuelled by political and anticompetitive motives?
Thinkers such as Yuval Noah Harari warn that the
coronavirus pandemic could be a watershed in the history of mass surveillance.
But Eric Harwit, a professor of Asian studies at the University of Hawaii, does not buy such arguments against TikTok, especially given that 60 per cent of its US users are aged 16 to 24.
“ByteDance has done a pretty good job of having a firewall between TikTok and the Chinese version of it, Douyin.
TikTok, iPhone: all you need to escape Mumbai’s slums – for 15 seconds
“Also, many users in the US are teens and they’re not a particularly useful source of national security information.
“So I’d say the concerns are motivated more by a general fear of any kind of Chinese telecommunication application rather than actual attempts to siphon off valuable US intelligence information.
“And Facebook and other American companies have similar products,” Harwit points out. “US government officials will always want to protect American commercial interests.”
Sarah Cook, a China analyst for Freedom House – the US government-funded think tank – disagrees.
“We have concerns about how Facebook and Twitter deal with information affecting electoral politics, and that’s magnified if you’re talking about a Chinese company that now has a user base that rivals theirs.”
Chinese officials, she argues, have shown a willingness to censor and manipulate information well beyond their country’s borders – for instance, regarding the scale of the initial outbreak in Wuhan, an obfuscation that may have exacerbated its impact abroad.
“For those who think Chinese government censorship is only Chinese people’s problem, this pandemic shows how much that’s not the case.
“And even if it’s not happening right now with TikTok, the concern is that Chinese companies are beholden to their government, whether they want to be or not.
“I’m not saying block TikTok entirely,” she says. “It’s a question of looking at it in a democratic system and deciding on reasonable oversight and safeguards to protect users and information flows when that time comes.”
When it comes to expanding China’s cultural influence, though, neither Cook nor Harwit believes the app is especially effective.
Most people are oblivious to its Chinese origins, which the user experience does not reflect in any way. So there is no goodwill-generating soft power of the sort wielded by, say,
through the K-pop industry.
If anything, TikTok often promotes the increasingly homogenous, Western-leaning culture seen on many globally popular social media apps.
So says Morten Bay, a lecturer in digital and social media at the University of Southern California’s Annenberg School for Communication and Journalism.
“A semi-Western culture, with small variations of local culture, is becoming the norm on social media. And Chinese soft power is difficult to assert because there’s no value difference.”
And even if Chinese tech companies keep taking bigger bites of the Western market, he is sceptical of China’s “ability to leverage that for soft power in a geopolitical sense”.
“Because there is a very big apparatus pushing against China in that regard. As soon as TikTok started gaining traction in the US, people came out against it, trying to make everyone aware of the privacy and geopolitical issues.
The #KaunsiBadiBaatHai campaign on TikTok aims to raise awareness about women’s safety issues in India. Image: TikTok
“So China faces a lot of resistance,” Bay concludes. “And I’m not sure a social media platform on its own can do much about that.”
Still, if you had to back a horse in this race, TikTok would be it, says Zhang Mengmeng.
When she and her colleagues from global industry analysis firm Counterpoint Research visited the company, they were impressed by its research and development capabilities.
“Because they’re a very young company, their pace for incubating new projects is a lot faster, especially compared to successful but older internet companies in China which have been around for 15 to 20 years.
Indian invasion of Chinese social media apps sparks fear and loathing in New Delhi
“They have lots of little start-up projects within the company and their organisational structure is very flat – it doesn’t matter what your age is, if you have a good idea, you get promoted very quickly.”
TikTok’s rise is also emblematic of a broader role reversal in the US-China tech war, she believes.
“Before, the US was more advanced in terms of internet development and China seemed to just copy its new ideas. Now, this is reversing. There are so many people in China using the internet that start-ups there can test ideas very easily.
“So now it seems like a lot of US companies are trying to see what ideas are coming out of China.” ■
Source: SCMP
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