12/04/2020
- Between January 20 and April 4, PM2.5 levels across the country fell by more than 18 per cent, according to the environment ministry
- But observers say that as soon as the nation’s factories and roads get back to normal, so too will the air pollution levels
Blue skies were an unexpected upside of locking down cities and halting industrial production across China. Photo: AFP
China’s air quality has improved dramatically in recent weeks as a result of the widespread city lockdowns and strict travel restrictions introduced to contain the
. But experts say the blue skies could rapidly disappear as factories and roads reopen under a government stimulus plan to breathe new life into a stalled economy.
According to the Ministry of Ecology and Environment, between January 20 and April 4 the average concentration of PM2.5 – the tiny particles that pose the biggest risk to health – fell by 18.4 per cent from the same period of last year.
Meanwhile, the average number of days with good air quality – determined as when the air pollution index falls below 100 – rose by 7.5 per cent, it said.
Satellite images released by Nasa and the European Space Agency showed a dramatic drop in nitrogen dioxide emissions in major Chinese cities in the first two months of 2020, compared with a year earlier.
According to Nasa, the changes in Wuhan – the central China city at the epicentre of the initial coronavirus outbreak – were particularly striking, while nitrogen dioxide levels across the whole of eastern and central China were 10 to 30 per cent lower than normal.
The region is home to hundreds of factories, supplying everything from steel and car parts to microchips. Wuhan, which has a population of 11 million, was placed under lockdown on January 23, but those
restrictions were lifted on Wednesday
.
Air pollution is likely to return to China’s cities once the lockdowns are lifted. Photo: Reuters
Nitrogen dioxide is produced by cars, power plants and other industrial facilities and is thought to exacerbate respiratory illnesses such as asthma.
The space agency said the decline in air pollution levels coincided with the restrictions imposed on transport and business activities.
That was consistent with official data from China’s National Development and Reform Commission, which recorded a 25 per cent fall in road freight volume and a 14 per cent decline in the consumption of oil products between January and February.
Guangzhou cases prompt shutdown in ‘Little Africa’ trading hub
Liu Qian, a senior climate campaigner for Greenpeace based in Beijing, said the restrictions on industry and travel were the primary reasons for the improvement in air quality.
According to official data, in February, the concentrations of PM2.5, nitrogen dioxide and sulphur dioxide – a toxic gas that comes mostly from industrial burning of coal and other fossil fuels – all fell, by 27 per cent, 28 per cent and 23 per cent, respectively.
“The causes of air pollution are complicated, but the suspension of industrial activity and a drop in public transport use will have helped to reduce levels,” Liu said.
As the epicentre of the Covid-19 pandemic has shifted to the
United States and
, human and industrial activity in China is gradually picking back up, and so is air pollution.
Lauri Myllyvirta, lead analyst with the Centre for Research on Energy and Clean Air in Helsinki, said that levels of nitrogen dioxide pollution, measured both by Nasa satellites and official stations in China, started inching back up in the middle of March and had returned to normal levels by the end of the month.
That coincided with the centre’s findings – published on Carbon Brief, a British website on climate change – that coal consumption at power plants and oil refineries across China returned to their normal levels in the fourth week of March.
How the Wuhan experience could help coronavirus battle in US and Europe
Ma Jun, director of the Institute of Public & Environmental Affairs, a Beijing-based charity, said a stimulus plan to kick-start the economy would have a significant impact on air pollution.
“Once industrial production is fully resumed, so are the emission levels,” he said. “Unless another outbreak happens and triggers another lockdown, which would be terrible, the improvement achieved under the pandemic is unstable and won’t last long.”
After the 2008 financial crisis, Beijing launched a 4 trillion yuan (US$567.6 billion) stimulus package that included massive infrastructure investment, but also did huge damage to the environment. In the years that followed, air pollution rose to record highs and sparked a public backlash.
Even before the
Covid-19 outbreak, China’s economy was slowing – it grew by 6.1 per cent in 2019, its slowest for 29 years – and concerns are now growing that policymakers will go all out to revive it.
“Local governments have been under huge pressure since last year, and there are fears that environmental regulations will be sidelined [in the push to boost economic output],” Ma said.
But Beijing had the opportunity to get it right this time by investing more in green infrastructure projects rather than high-carbon projects, he said.
“A balance between economic development and environmental protection is key to achieving a green recovery, and that is what China needs.”
Source: SCMP
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11/04/2020
BEIJING (Reuters) – China reported on Saturday a rise in new coronavirus cases, as authorities try to head off a second wave of infections, particularly from imported and asymptomatic cases, as curbs on cities and travel are lifted.
The National Health Commission said 46 new cases were reported on Friday, including 42 involving travellers from abroad, up from 42 cases a day earlier.
In its statement the commission added that 34 new asymptomatic cases were reported, down from 47 the previous day.
Mainland China’s tally of infections now stands at 81,953. The death toll rose by three to 3,339.
Tough curbs imposed since January helped rein in infections sharply from the height of the pandemic in February. But policymakers fear a second wave triggered by arrivals from overseas or asymptomatic patients.
Northeastern Heilongjiang recently reported a spike in new cases because of Chinese nationals entering the province from Russia, which has seen a surge of cases.
Provincial health officials said it had 22 new imported cases on Friday, all Chinese nationals coming from Russia, and one new local case, in its capital of Harbin.
Inner Mongolia had a daily tally of 27 new imported cases by Saturday morning, all from Russia, the region’s health authority said.
The central province of Hubei, where the virus emerged late last year, reported no new cases for a seventh successive day.
A rise in virus infections has prompted authorities in Guangzhou to step up scrutiny of foreigners, ordering bars and restaurants not to serve clients who appear to be of African origin, the U.S. consulate in the southern city said.
Anyone with “African contacts” faces mandatory virus tests followed by quarantine, regardless of recent travel history or previous isolation, it said in a statement.
It advised African-Americans or those who feel they might be suspected of contact with nationals of African origin to avoid the city.
Since the epidemic broke out in the provincial capital of Wuhan, it has spread around the world, infecting 1.6 million people and killing more than 100,000.
Source: Reuters
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30/03/2020
WUHAN, China (Reuters) – China reported a drop in new coronavirus infections for a fourth day as drastic curbs on international travellers reined in the number of imported cases, while policymakers turned their efforts to healing the world’s second-largest economy.
The city of Wuhan, at the centre of the outbreak, reported no new cases for a sixth day, as businesses reopened and residents set about reclaiming a more normal life after a lockdown for almost two months.
Smartly turned out staff waited in masks and gloves to greet customers at entrances to the newly-reopened Wuhan International Plaza, home to boutiques of luxury brands such as Cartier and Louis Vuitton.
“The Wuhan International Plaza is very representative (of the city),” said Zhang Yu, 29. “So its reopening really makes me feel this city is coming back to life.”
Sunday’s figure of 31 new cases, including one locally transmitted infection, was down from 45 the previous day, the National Health Commission said.
As infections fall, policymakers are scrambling to revitalise an economy nearly paralysed by months-long curbs to control the spread of the flu-like disease.
On Monday, the central bank unexpectedly cut the interest rate on reverse repurchase agreements by 20 basis points, the largest in nearly five years.
The government is pushing businesses and factories to reopen, as it rolls out fiscal and monetary stimulus to spur recovery from what is feared to be an outright economic contraction in the quarter to March.
China’s exports and imports could worsen as the pandemic spreads, depressing demand both at home and abroad, Xin Guobin, the vice minister of industry and information technology, said on Monday.
The country has extended loans of 200 billion yuan (22.75 billion pounds) to 5,000 businesses, from 300 billion allocated to help companies as they resume work, Xin said.
Authorities in Ningbo said they would encourage national banks to offer preferential credit of up to 100 billion yuan to the eastern port city’s larger export firms. The city government will subsidize such loans, it said in a notice.
VIRUS CONCERNS
While new infections have fallen sharply from February’s peak, authorities worry about a second wave triggered by returning Chinese, many of them students.
China cut international flights massively from Sunday for an indefinite period, after it began denying entry to almost all foreigners a day earlier.
Average daily arrivals at airports this week are expected to be about 4,000, down from 25,000 last week, an official of the Civil Aviation Administration of China told a news conference in Beijing on Monday.
The return to work has also prompted concern about potential domestic infections, especially over carriers who exhibit no, or very mild, symptoms of the highly contagious virus.
Northwestern Gansu province reported a new case of a traveller from the central province of Hubei, who drove back with a virus-free health code, national health authorities said.
Hubei authorities say 4.6 million people in the province returned to work by Saturday, with 2.8 million of them heading for other parts of China.
Most of the departing migrant workers went to the southern provinces of Guangdong and Fujian, the eastern provinces of Zhejiang and Jiangsu, and northeast China.
In Hubei’s capital of Wuhan, more retail complexes and shopping streets reopened.
Electric carmaker Tesla Inc has also reopened a showroom in Wuhan, a company executive said on Weibo.
Shoppers queued 1-1/2 metres (5 ft) apart for temperature checks at Wuhan International Plaza, while flashing “green” mobile telephone codes attesting to a clean bill of health.
To be cleared to resume work, Wuhan residents have been asked to take nucleic acid tests twice.
“Being able to be healthy and leave the house, and meet other colleagues who are also healthy is a very happy thing,” said Wang Xueman, a cosmetics sales representative.
Source: Reuters
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19/03/2020
LONDON/BEIJING (Reuters) – The world’s wealthiest nations poured unprecedented aid into the traumatized global economy on Thursday as coronavirus cases ballooned in the current epicentre Europe even as they waned at the pandemic’s point of origin, China.
With almost 219,000 infections and more than 8,900 deaths so far, the epidemic has stunned the world and drawn comparisons with painful periods such as World War Two, the 2008 financial crisis and the 1918 Spanish flu.
“This is like an Egyptian plague,” said Argentinian hotelier Patricia Duran, who has seen bookings dry up for her two establishments near the famous Iguazu Falls.
“The hotels are empty – tourist activity has died.”
Tourism and airlines have been particularly battered, as the world’s citizens hunker down to minimize contact and curb the spread of the flu-like COVID-19. But few sectors have been spared by a crisis threatening lengthy global recession.
On markets, investors have dumped assets everywhere, many switching to U.S. dollars as a safe haven. Other currencies hit historic lows, with Britain’s pound near its weakest since 1985.
Policymakers in the United States, Europe and Asia have slashed interest rates and opened liquidity taps to try to stabilise economies hit by quarantined consumers, broken supply chains, disrupted transport and paralysed businesses.
The virus, thought to have originated from wildlife on mainland China late last year, has jumped to 172 other nations and territories with more than 20,000 new cases reported in the past 24 hours – a new daily record.
Cases in Germany, Iran and Spain rose to over 12,000 each. An official in Tehran tweeted that the coronavirus was killing one person every 10 minutes.
LONDON LOCKDOWN?
Britain, which had sought to take a gradual approach to containment, was closing dozens of underground stations in London and ordering schools shut from Friday.
Some 20,000 military personnel were on standby to help and Queen Elizabeth was due to leave Buckingham Palace in the capital for her ancient castle at Windsor. Britain has reported 104 deaths and 2,626 cases, but scientific advisers say the real number of infections may be more than 50,000.
Italian soldiers transported corpses overnight from an overwhelmed cemetery in Europe’s worst-hit nation where nearly 3,000 people have died. Germany’s military was also readying to help despite national sensitivities over its deployment dating back to the Nazi era.
Supermarkets in many countries were besieged with shoppers stocking up on food staples and hygiene products. Some rationed sales and fixed special hours for the elderly.
Solidarity projects were springing up in some of the world’s poorest corners. In Kenya’s Kibera slum, for example, volunteers with plastic drums and boxes of soap on motorbikes set up handwashing stations for people without clean water.
Russia reported its first coronavirus death on Thursday.
Amid the gloom, China provided a ray of hope, as it reported zero new local transmissions in a thumbs-up for its draconian containment policies since January. Imported cases, however, surged, accounting for all 34 new infections.
The United States, where President Donald Trump had initially played down the coronavirus threat, saw infections close in on 8,000 and deaths reach at least 151.
Trump has infuriated Beijing’s communist government by rebuking it for not acting faster and drawn accusations of racism by referring to the “Chinese virus”.
“EXTRAORDINARY TIMES”
In a bewildering raft of financial measures around the world, the European Central Bank launched new bond purchases worth 750 billion euros ($817 billion). That brought some relief to bond markets and also halted European shares’ slide, though equities remained shaky elsewhere.
“Extraordinary times require extraordinary action,” ECB President Christine Lagarde said, amid concerns that the strains could tear apart the euro zone as a single currency bloc.
The U.S. Federal Reserve rolled out its third emergency credit programme in two days, aimed at keeping the $3.8 trillion money market mutual fund industry functioning.
China was to unleash trillions of yuan of fiscal stimulus and South Korea pledged 50 trillion won ($39 billion).
The desperate state of industry was writ large in Detroit, where the big three automakers – Ford Motor Co (F.N), General Motors Co (GM.N) and Fiat Chrysler Automobiles NV (FCHA.MI) (FCAU.N) – were shutting U.S. plants, as well as factories in Canada and Mexico.
With some economists fearing prolonged pain akin to the 1930s Great Depression but others anticipating a post-virus bounceback, gloomy data and forecasts abounded.
In one of the most dire calls, J.P. Morgan economists forecast the Chinese economy to drop more than 40% this quarter and the U.S. economy to shrink 14% in the next.
There was a backlash against conspiracy theories and rumours circulating on social media, with Morocco arresting a woman who denied the disease existed.
And in Brazil, where President Jair Bolsonaro initially labelled the virus “a fantasy”, more members of the political elite fell ill. At night, housebound protesters banged pots and pans, shouting “Bolsonaro out!” from their windows.
Source: Reuters
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01/09/2019
- The manufacturing purchasing managers’ index, released by the National Bureau of Statistics on Saturday, was 49.5 in August
- Figure adds to a month of woe for policymakers in Beijing, even ahead of planned US tariff increases on September 1, October 1, and December 15
China’s manufacturing purchasing managers’ index fell by 0.2 points in August as the trade war continued to bite. Photo: Xinhua
As the trade war with the United States continues to gather pace, manufacturers in China remain gloomy about their prospects, with the sector activity contracting for the fourth successive month in August.
The manufacturing purchasing managers’ index (PMI), released by the National Bureau of Statistics (NBS) on Saturday, stood at 49.5 in August, down from a reading of
, and below analysts’ expectations. The median result of a survey of analysts by Bloomberg expected a reading of 49.6.
The PMI is a gauge of sentiment among factory operators, with 50 being the demarcation line between expansion and contraction in sector activity. In the survey, manufacturers are asked to give a view on business issues such as export orders, purchasing, production and logistics.
That the index has remained in contractionary territory for six of eight months this year shows that the effects of US tariffs are resonating through the Chinese economy. The manufacturing PMI only showed expansion in March and April of this year.
New and higher US tariffs scheduled to enter force on September 1, October 1 and December 15 could provide some very temporary boost to Chinese exports and therefore manufacturers, should they inspire American buyers to make early purchases to pay lower tariff rates. However the long term trajectory is negative, with many manufacturers scoping out or already relocating to production sites outside the world’s second largest economy.
Also released on Saturday was the official non-manufacturing PMI, a survey of the construction and services sectors. This stood at 53.8, up from 53.7 in July, showing that these sectors have remained more robust in the face of a general slowdown in China’s economy. The Bloomberg survey of analysts had expected non-manufacturing PMI in August to remain unchanged.
Composite PMI, a combined reading of both manufacturing and non-manufacturing, was 53, down from 53.1 in July.
The August PMI decline “indicates downward pressure on the economy,” said Zhang Liqun, an analyst with the China Federation of Logistics and Purchasing, which produces the index with the NBS.
“Corporations’ forecasts of the market outlook were quite poor while being cautious on their production operations,” Zhang said. The PMI indicated a drop in new orders, which also reflected a lack of domestic demand. Given that the US is escalating tensions with China, downward pressure on external demand is also apparent, Zhang said.
August was a month to forget for policymakers in Beijing, with a series of negative data highlighting the serious economic challenges facing the nation. With the trade war threatening to tip the global economy into a recession, China remains heavily exposed.
The trade war is having a significant impact on Chinese manufacturing. Photo: Xinhua
While exports grew by 3.3 per cent in July, a sign of front-loading, imports fell by 5.6 per cent, emphasising the issues with consumption in China. This problem was also clear in retail sales figure, which came in at a disappointing 7.6 per cent for July, down from 9.8 per cent growth in June.
, a measure of output in China’s manufacturing and mining sectors, grew by just 4.8 per cent in July, the lowest reading since February 2002.
Gross domestic product in China for the second quarter of 2019 grew at 6.2 per cent, the lowest rate since NBS quarterly records began in 1992.
Source: SCMP
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10/03/2019
BEIJING (Reuters) – China’s central bank on Sunday pledged to further support the slowing economy by spurring loans and lowering borrowing costs, following data that showed a sharp drop in February’s bank lending due to seasonal factors.
The central bank is widely expected to ease monetary policy further this year to encourage lending especially to small and private firms vital for growth and job creation.
The central bank’s “prudent” monetary policy will emphasize on counter-cyclical adjustments, said People’s Bank of China (PBOC) Governor Yi Gang, using a phrase that implies the need to fight an economic slowdown.
“The global economy still faces some downward pressure and China faces many risks and challenges in its economy and financial sector,” Yi said at a press conference on the sidelines of the country’s annual meeting of parliament.
There is still some room for the PBOC to cut reserve requirement ratios (RRRs), although the amount of room is less compared with a few years ago, Yi said.
The PBOC has cut the amount of cash that commercial banks need to set aside as reserves five times in the past year to spur lending to small businesses in the private sector. The RRR for big banks is now at 13.5 percent and the ratio for small- to medium-size banks is at 11.5 percent.
Yi said lending rates for small firms are still relatively elevated due to higher risk premiums and the central bank will forge ahead with reforms to lower such risk premiums.
High risk premiums on loans to small firms reflect commercial banks’ traditional reluctance to extend credit to the sector because of concerns about their creditworthiness.
PBOC data on Sunday showed new bank loans in China fell sharply in February from a record the previous month, but the drop was likely due to seasonal factors, while policymakers continue to press lenders to help cash-strapped firms stay afloat.
A pull-back in February’s tally had been widely expected as Chinese banks tend to front-load loans at the beginning of the year to get higher-quality customers and win market share.
Chinese banks made 885.8 billion yuan ($131.81 billion) in net new yuan loans in February, down sharply from a record 3.23 trillion yuan in January, when several other key credit gauges also picked up modestly in response to the central bank’s policy easing.
Yi said combined January-February new loans and total social financing (TSF), a broad measure of credit and liquidity in the economy, could paint a more accurate picture as they showed a rise of 374.8 billion yuan and 1.05 trillion yuan from a year earlier, respectively.
DEBT DEFAULTS
Analysts say China needs to revive weak credit growth to help head off a sharper economic slowdown this year, but investors are worried about a further jump in corporate debt and the risk to banks as they relax their lending standards.
Corporate bond defaults hit a record last year, while banks’ non-performing loan ratio notched a 10-year high.
Pan Gongsheng, a vice governor at the PBOC, told the same briefing that China will control the amount of bond defaults in 2019, using both legal and market means.
Pan conceded that bond defaults increased last year, but the level of defaults was not high compared with China’s average bad loan ratio.
Premier Li Keqiang told parliament on Tuesday that monetary policy would be “neither too tight nor too loose”. Li also pledged to push for market-based reforms to lower real interest rates.
Chinese policymakers have repeatedly vowed not to open the credit floodgates in an economy already saddled with piles of debt – a legacy of massive stimulus during the global financial crisis in 2008-09 and subsequent downturns.
Sources have told Reuters the central bank is not ready to cut benchmark interest rates just yet, but is likely to cut market-based rates.
Yi said the downward trend in TSF has been initially curbed and broad M2 money supply growth will be more or less in line with nominal gross domestic product growth in 2019, Yi added.
Central bank data showed growth of outstanding TSF, a rough gauge of broad credit conditions, slowed to 10.1 percent in February from January’s 10.4 percent, versus a record low of 9.8 percent in December.
M2 money supply grew 8.0 percent in February from a year earlier, missing forecasts, the central bank data showed. Yi said China’s macro leverage ratio, or the amount of debt relative to GDP, was at 249.4 percent at the end of 2018, a fall of 1.5 percentage points from a year earlier, Yi said.
Analysts note there is a time lag before a jump in lending will translate into growth, suggesting business conditions may get worse before they get better.
Most economists expect a rocky first half before conditions begin to stabilize around mid-year as support measures begin to have a greater impact.
China’s economic growth is expected to cool to around 6.2 percent this year, a 29-year low, according to Reuters polls.
Growth slowed to 6.6 percent last year, with domestic demand curbed by higher borrowing rates and tighter credit conditions and exporters hit by the escalating trade war with the United States.
Source: Reuters
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CHINDIA ALERT: You'll be living in their world, very soon 