Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
BEIJING (Reuters) – Tang Yue, a 27-year-old teacher from the city of Guilin in southwest China, steam-presses a blue dress and takes dozens of photographs before picking one to clinch her 200th online sale.
For a growing number of Chinese like Tang, hit by job losses, furloughs and salary cuts, the consumer economy has begun to spin in reverse. They are no longer buying – they are selling.
Instead of emerging from the coronavirus epidemic and returning to the shopping habits that helped drive the world’s second-largest economy, many young people are offloading possessions and embracing a new-found ethic for hard times: less is more.
With Tang’s monthly salary of about 7,000 yuan ($988), the self-described shopaholic said she has bought everything from Chanel lipsticks to Apple’s (AAPL.O) latest iPad in the past three years.
But the adrenaline rush that comes with binge-shopping is gone, said Tang, whose wages have been slashed with the suspension of all the classes on tourism management she usually teaches.
“The coronavirus outbreak was a wake-up call,” she said. “When I saw the collapse of so many industries, I realised I had no financial buffer should something unfortunate happen to me.”
There is no guarantee that the nascent minimalist trend will continue once the coronavirus crisis is fully over, but if it does, it could seriously damage China’s consumer sector and hurt thousands of businesses from big retailers to street-corner restaurants, gyms and beauty salons.
To be sure, there are signs that pent-up demand will drive a rush of spending as authorities reopen malls, leisure venues and tourist spots. In South Korea, the first major economy outside of China to be hit by the virus, people thronged malls this weekend to go “revenge shopping” to make up for time lost in lockdown.,
There are some signs that a similar trend will take hold in China, where some upscale malls are starting to get busy, although luxury firm Kering SA (PRTP.PA) – which owns Gucci, Balenciaga and other fashion brands – has said it is hard to predict how or when sales in China might come back.
A recent McKinsey & Co survey showed that between 20% and 30% of respondents in China said they would continue to be cautious, either consuming slightly less or, in a few cases, a lot less.
“The lockdown provided consumers with a lot of time and reasons to reflect and consider what is important to them,” said Mark Tanner, managing director at Shanghai-based research and marketing consultancy China Skinny.
“With much more of their days spent in their homes, consumers also have more time and reasons to sort through things they don’t feel they need – so they’re not living around clutter that is common in many apartments.”
#DITCHYOURSTUFF
Tang made a spreadsheet to keep track of her nearly 200 cosmetic products and hundreds of pieces of clothing. She then marked a few essentials in red that she wanted to keep. In the past two months, she has sold items worth nearly 5,000 yuan on second-hand marketplaces online.
Bargain-hunting online has become a new habit for some Chinese as the stigma that once hung over second-hand goods has begun to fade.
Idle Fish, China’s biggest online site for used goods, hit a record daily transaction volume in March, its parent company Alibaba (BABA.N) told Reuters.
Government researchers predict that transactions for used goods in China may top 1 trillion yuan ($141 billion) this year.
Posts with the hashtag #ditchyourstuff have trended on Chinese social media in recent weeks, garnering more than 140 million views.
Jiang Zhuoyue, 31, who works as an accountant at a traditional Chinese medicine company in Beijing – one of the few industries that may benefit from the health crisis – has also decided to turn to a simpler life.
“I used to shop too much and could be easily lured by discounts,” said Jiang. “One time Sephora offered 20% off for all goods, I then bought a lot of cosmetics because I feel I’m losing money if I don’t.”
Jiang, the mother of a 9-month-old baby, said she recently sold nearly 50 pieces of used clothing as the lockdown gave her the opportunity to clear things out. “It also offered me a chance to rethink what’s essential to me, and the importance of doing financial planning,” she said.
Eleven Li, a 23-year-old flight attendant, said she used to spend her money on all manner of celebrity-endorsed facial masks, snacks, concert tickets and social media activity, but now has no way to fund her spending.
“I just found a new job late last year, then COVID-19 came along, and I haven’t been able to fly once since I joined, and I’ve gotten no salary at all,” said Li, who said she was trying to sell her Kindle.
Some are even selling their pets, as they consider leaving big cities like Beijing and Shanghai where the high cost of living is finally catching up with them.
NO RETURN TO OLD WAYS?
As the coronavirus comes under control in China, the government is gradually releasing cities from lockdown, easing transport restrictions and encouraging consumers to venture back into malls and restaurants by giving out billions-worth of cash vouchers, worth between 10 yuan and 100 yuan.
But many people say they are still worried about job security and potential wage cuts because of the struggling economy. Nationwide retail sales have plunged every month so far this year.
Xu Chi, a Shanghai-based senior strategic analyst with Zhongtai Securities, said some Chinese consumers may prove the ‘21 Day Habit Theory,’ a popular scientific proposition that it only takes that long to establish new habits.
“We believe people’s spending patterns follow the well-known theory, which means most people in China, having been cooped-up at home for more than a month and not having binge-shopped, may break the habit and not return to their old ways,” Xu said.
Jiang said she was determined not to return to her free-spending ways and planned to cook more at home.
“I’ll turn to cheaper goods for some luxury brands,” she said. “I’ll choose Huawei’s smartphone, because (Apple’s) iPhone has too much brand premium.”
Tang, who has recently used 100 yuan of shopping coupons to stock up on food, is going to hold the purse strings even tighter.
“I’ve set my monthly budget at 1,000 yuan,” she said. “Including one – and just one – bottle of bubble tea.”
BEIJING/WUHAN, China (Reuters) – China on Saturday mourned the thousands of “martyrs” who have died in the new coronavirus outbreak, flying the national flag at half mast throughout the country and suspending all forms of entertainment.
The Chinese national flag flies at half-mast at Tiananmen Square in Beijing, as China holds a national mourning for those who died of the coronavirus disease (COVID-19), on the Qingming tomb sweeping festival, April 4, 2020. REUTERS/Carlos Garcia Rawlins
The day of mourning coincided with the start of the annual Qingming tomb-sweeping festival, when millions of Chinese families pay respects to their ancestors.
At 10 a.m. (0200 GMT) Beijing time, the country observed three minutes of silence to mourn those who died, including frontline medical workers and doctors. Cars, trains and ships sounded their horns and air raid sirens wailed.
In Zhongnanhai, the seat of political power in Beijing, President Xi Jinping and other Chinese leaders paid silent tribute in front of the national flag, with white flowers pinned to their chest as a mark of mourning, state media reported.
More than 3,300 people in mainland China have died in the epidemic, which first surfaced in the central province of Hubei late last year, according to statistics published by the National Health Commission.
In Wuhan, the capital of Hubei province and the epicentre of the outbreak, all traffic lights in urban areas turned red at 10 a.m. and all road traffic ceased for three minutes.
Some 2,567 people have died in Wuhan, a megacity of 11 million people located in the middle reaches of the Yangtze river. The Wuhan deaths account for more than 75% of the country’s fatalities.
Among those who died was Li Wenliang, a young doctor who tried to raise the alarm about the disease. Li was honoured by the Hubei government earlier this week, after initially being reprimanded by police in Wuhan for “spreading rumours”.
Gui Yihong, 27, who was among thousands of Wuhan locals who volunteered to deliver food supplies to hospitals during the city’s months-long lockdown, recalled the fear, frustration and pain at Wuhan Central Hospital, where Li worked.
“If you weren’t at the frontlines you wouldn’t be able to experience this,” said Gui, as he laid some flowers next to Wuhan’s 1954 flood memorial by the Yangtze.
“I had to (come) and bear witness. For the last 80 days we had fought between life and death, and finally gained victory. It was not easy at all to come by.”
While the worst was behind Wuhan, the virus has spread to all corners of the globe since January, sickening more than a million people, killing more than 55,000 and paralysing the world economy.
Wuhan banned all tomb-sweeping activities in its cemeteries until at least April 30, curtailing one of the most important dates in the traditional Chinese lunar new year calendar which usually sees millions of families travel to tend to their ancestral graves, offer flowers and burn incense.
They have also told residents, most stuck at home due to lockdown restrictions, to use online streaming services to watch cemetery staff carry out those tasks live.
ASYMPTOMATIC CASES
Online, celebrities including “X-Men: Days of Future Past” star Fan Bingbing swapped their glamorous social media profile pictures for sombre photos in grey or black, garnering millions of “likes” from fans.
Chinese gaming and social media giant Tencent (0700.HK) suspended all online games on Saturday.
As of Friday, the total number of confirmed cases across the country stood at 81,639, including 19 new infections, the National Health Commission said.
Eighteen of the new cases involved travellers arriving from abroad. The remaining one new infection was a local case in Wuhan, a patient who was previously asymptomatic.
Asymptomatic people exhibit few signs of infection such as fevers or coughs, and are not included in the tally of confirmed cases by Chinese authorities until they do.
However, they are still infectious, and the government has warned of possible local transmissions if such asymptomatic cases are not properly monitored.
China reported 64 new asymptomatic cases as of Friday, including 26 travellers arriving in the country from overseas. That takes the total number of asymptomatic people currently under medical observation to 1,030, including 729 in Hubei.
Villagers clean a house damaged by floods at Jiangbei Village of Banlan Township, Rongan County, south China’s Guangxi Zhuang Autonomous Region,July 14, 2019. A series of reconstructing and rescuing works have been done since Rong’an was hit by heavy rains recently. (Xinhua/Huang Xiaobang)
BEIJING, July 14 (Xinhua) — At least 17 people were killed or missing and thousands evacuated as torrential downpours unleashed floods and toppled houses in central, eastern and southern China.
The National Meteorological Center on Sunday renewed a blue alert for rainstorms, predicting heavy rain in Zhejiang, Fujian, Jiangxi, Hunan, Guangdong, Yunnan, Sichuan provinces, as well as Guangxi Zhuang Autonomous Region and Tibet Autonomous Region.
Some of those regions will see up to 120 mm of torrential rainfall, it said.
China has a color-coded weather warning system, with red representing the most severe, followed by orange, yellow and blue.
As of 8 a.m. Sunday, at least 17 people died or were reported missing following rain-triggered floods in central Hunan Province, which also forced more than 470,000 people to be relocated and 179,000 were in urgent need of aid.
Four hydrometric stations along the Yangtze River in Xianning city, central Hubei Province, have reported the river water reaching or surpassing a level that can activate local anti-flood work.
In eastern Anhui Province, rain-triggered floods have affected more than 51,000 people and damaged over 2,700 hectares of crops.
The floods have forced the evacuation of 926 people, and caused a direct economic loss of more than 59.6 million yuan (8.66 million U.S. dollars) in the province.
As of Saturday noon, 330,000 people in 18 counties of Jiangxi Province have been affected by rainstorm-triggered floods, with over 10,500 residents relocated.
Poyang Lake, China’s largest freshwater lake in the lower reaches of the Yangtze, is swelling above the alarming level, according to the hydrographic department in Jiangxi.
The water level of the lake reached 20.08 meters as of 8 a.m. Saturday, 1.08 m above the warning level, as recorded by Xingzi Hydrometric Station on the lake.
In south China’s Guangxi Zhuang Autonomous Region, rainstorm has affected more than 360,000 people as of 5 p.m. Sunday, damaging over 35,000 hectares of crops, according to the region’s emergency management department.
The disastrous weather in Guangxi has prompted the region to activate a level-II emergency response and send special work teams and relief materials to the ravaged areas.
In some of the disaster-hit towns, flood water from subterranean rivers has inundated roads.
“After torrential downpours, waters on mountains and underground rivers converge into low-lying lands, which may lead to waterlogging. In affected villages, the water depth in some people’s houses can exceed two meters,” said Liao Bin, an official with Jiuwei Town, Hechi City.
Local authorities have dispatched boats and wooden rafts to transfer the stranded people, set up temporary relocation sites, and deliver living supplies to blocked villages.
Since June, the southwestern province of Guizhou has allocated a total of 16.5 million yuan for its hardest-hit 16 counties.
CHINDIA ALERT: You'll be living in their world, very soon 