Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
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The richest man in China opened his own Twitter account last month, in the middle of the Covid-19 outbreak. So far, every one of his posts has been devoted to his unrivalled campaign to deliver medical supplies to almost every country around the world.
“One world, one fight!” Jack Ma enthused in one of his first messages. “Together, we can do this!” he cheered in another.
The billionaire entrepreneur is the driving force behind a widespread operation to ship medical supplies to more than 150 countries so far, sending face masks and ventilators to many places that have been elbowed out of the global brawl over life-saving equipment.
But Ma’s critics and even some of his supporters aren’t sure what he’s getting himself into. Has this bold venture into global philanthropy unveiled him as the friendly face of China’s Communist Party? Or is he an independent player who is being used by the Party for propaganda purposes? He appears to be following China’s diplomatic rules, particularly when choosing which countries should benefit from his donations, but his growing clout might put him in the crosshairs of the jealous leaders at the top of China’s political pyramid.
Other tech billionaires have pledged more money to fight the effects of the virus – Twitter’s Jack Dorsey is giving $1bn (£0.8bn) to the cause. Candid, a US-based philanthropy watchdog that tracks private charitable donations, puts Alibaba 12th on a list of private Covid-19 donors. But that list doesn’t include shipments of vital supplies, which some countries might consider to be more important than money at this stage in the global outbreak.
The world’s top coronavirus financial donors
How Alibaba compares to the top five. No one else other than the effervescent Ma is capable of dispatching supplies directly to those who need them. Starting in March, the Jack Ma foundation and the related Alibaba foundation began airlifting supplies to Africa, Asia, Europe, Latin America and even to politically sensitive areas including Iran, Israel, Russia and the US.
Ma has also donated millions to coronavirus vaccine research and a handbook of medical expertise from doctors in his native Zhejiang province has been translated from Chinese into 16 languages. But it’s the medical shipments that have been making headlines, setting Ma apart.
“He has the ability and the money and the lifting power to get a Chinese supply plane out of Hangzhou to land in Addis Ababa, or wherever it needs to go,” explains Ma’s biographer, Duncan Clark. “This is logistics; this is what his company, his people and his province are all about.”
A friendly face
Jack Ma is famous for being the charismatic English teacher who went on to create China’s biggest technology company. Alibaba is now known as the “Amazon of the East”. Ma started the company inside his tiny apartment in the Chinese coastal city of Hangzhou, in the centre of China’s factory belt, back in 1999. Alibaba has since grown to become one of the dominant players in the world’s second largest economy, with key stakes in China’s online, banking and entertainment worlds. Ma himself is worth more than $40bn.
Officially, he stepped down as Alibaba’s chairman in 2018. He said he was going to focus on philanthropy. But Ma retained a permanent seat on Alibaba’s board. Coupled with his wealth and fame, he remains one of the most powerful men in China.
Media caption The BBC’s Secunder Kermani and Anne Soy compare how prepared Asian and African countries are
It appears that Ma’s donations are following Party guidelines: there is no evidence that any of the Jack Ma and Alibaba Foundation donations have gone to countries that have formal ties with Taiwan, China’s neighbour and diplomatic rival. Ma announced on Twitter that he was donating to 22 countries in Latin America. States that side with Taiwan but who have also called for medical supplies – from Honduras to Haiti – are among the few dozen countries that do not appear to be on the list of 150 countries. The foundations repeatedly refused to provide a detailed list of countries that have received donations, explaining that “at this moment in time, we are not sharing this level of detail”.
However, the donations that have been delivered have certainly generated a lot of goodwill. With the exception of problematic deliveries to Cuba and Eritrea, all of the foundations’ shipments dispatched from China appear to have been gratefully received. That success is giving Ma even more positive attention than usual. China’s state media has been mentioning Ma almost as often as the country’s autocratic leader, Xi Jinping.
AFP
So far…
Over 150 countries have received donations from Jack Ma, including about:
120.4mface masks
4,105,000testing kits
3,704ventilators
Source: Alizila
It’s an uncomfortable comparison. As Ma soaks up praise, Xi faces persistent questions about how he handled the early stages of the virus and where, exactly, the outbreak began.
The Chinese government has dispatched medical teams and donations of supplies to a large number of hard-hit countries, particularly in Europe and South-East Asia.
However, those efforts have sometimes fallen flat. China’s been accused of sending faulty supplies to several countries. In some cases, the tests it sent were being misused but in others, low-quality supplies went unused and the donations backfired.
In contrast, Jack Ma’s shipments have only boosted his reputation.
“It’s fair to say that Ma’s donation was universally celebrated across Africa,” says Eric Olander, managing editor of the China Africa Project website and podcast. Ma pledged to visit all countries in Africa and has been a frequent visitor since his retirement.
“What happens to the materials once they land in a country is up to the host government, so any complaints about how Nigeria’s materials were distributed are indeed a domestic Nigerian issue,” Olander adds. “But with respect to the donation itself, the Rwandan leader, Paul Kagame, called it a “shot in the arm” and pretty much everyone saw it for what it was which was: delivering badly-needed materials to a region of the world that nobody else is either willing or capable of helping at that scale.”
Walking the tightrope
But is Ma risking a backlash from Beijing? Xi Jinping isn’t known as someone who likes to share the spotlight and his government has certainly targeted famous faces before. In recent years, the country’s top actress, a celebrated news anchor and several other billionaire entrepreneurs have all “disappeared” for long periods. Some, including the news anchor, end up serving prison sentences. Others re-emerge from detention, chastened and pledging their allegiance to the Party.
“There’s a rumour that [Jack Ma] stepped down in 2018 from being the chairman of the Alibaba Group because he was seen as a homegrown entrepreneur whose popularity would eclipse that of the Communist Party,” explains Ashley Feng, research associate at the Centre for New American Security in Washington DC. Indeed, Ma surprised many when he suddenly announced his retirement in 2018. He has denied persistent rumours that Beijing forced him out of his position.
Image copyright GETTY IMAGESImage caption Ma discussed trade with then-President-elect Donald Trump in January 2017
Duncan Clark, Ma’s biographer, is also aware of reports that Ma was nudged away from Alibaba following a key incident in January 2017. The Chinese billionaire met with then-President-elect Donald Trump in Trump Tower, ostensibly to discuss Sino-US trade. The Chinese president didn’t meet with Trump until months later.
“There was a lot of speculation of time that Jack Ma had moved too fast,” Clark says. “So, I think there’s lessons learned from both sides on the need to try to coordinate.”
“Jack Ma represents a sort of entrepreneurial soft power,” Clark adds. “That also creates challenges though, because the government is quite jealous or nervous of non-Party actors taking that kind of role.”
Technically, Ma isn’t a Communist outsider: China’s wealthiest capitalist has actually been a member of the Communist Party since the 1980s, when he was a university student.
But Ma’s always had a tricky relationship with the Party, famously saying that Alibaba’s attitude towards the Party was to “be in love with it but not to marry it”.
Even if Ma and the foundations connected to him are making decisions without Beijing’s advance blessing, the Chinese government has certainly done what it can to capitalise on Ma’s generosity. Chinese ambassadors are frequently on hand at airport ceremonies to receive the medical supplies shipped over by Ma, from Sierra Leone to Cambodia.
China has also used Ma’s largesse in its critiques of the United States. “The State Department said Taiwan is a true friend as it donated 2 million masks,” the Chinese Foreign Ministry tweeted in early April. “Wonder if @StateDept has any comment on Jack Ma’s donation of 1 million masks and 500k testing kits as well as Chinese companies’ and provinces’ assistance?”
Perhaps Ma can rise above what’s happened to so many others who ran afoul of the Party. China might just need a popular global Chinese figure so much that Ma has done what no one else can: make himself indispensable.
“Here’s the one key takeaway from all that happened with Jack Ma and Africa: he said he would do something and it got done,” explains Eric Olander. “That is an incredibly powerful optic in a place where foreigners often come, make big promises and often fail to deliver. So, the huge Covid-19 donation that he did fit within that pattern. He said he would do it and mere weeks later, those masks were in the hands of healthcare workers.”
Image copyright GETTY IMAGESImage caption Ma at an Electronic World Trade Platform event with Ethiopian Prime Minister Abiy Ahmed last year
Duncan Clark argues that Ma already had a seat at China’s high table because of Alibaba’s economic heft. However, his first-name familiarity with world leaders makes him even more valuable to Beijing as China tries to repair its battered image.
“He has demonstrated the ability, with multiple IPOs under his belt, and multiple friendships overseas, to win friends and influence people. He’s the Dale Carnegie of China and that certainly, we’ve seen that that’s irritated some in the Chinese government but now it’s almost an all hands on deck situation,” Clark says.
There’s no doubt that China’s wider reputation is benefiting from the charitable work of Ma and other wealthy Chinese entrepreneurs. Andrew Grabois from Candid, the philanthropic watchdog that’s been measuring global donations in relation to Covid-19, says that the private donations coming from China are impossible to ignore.
“They’re taking a leadership role, the kind of thing that used to be done by the United States,” he says. “The most obvious past example is the response to Ebola, the Ebola outbreak in 2014. The US sent in doctors and everything to West Africa to help contain that virus before it left West Africa.”
Chinese donors are taking on that role with this virus.
“They are projecting soft power beyond their borders, going into areas, providing aid, monetary aid and expertise,” Grabois adds.
So, it’s not the right time for Beijing to stand in Jack Ma’s way.
“You know, this is a major crisis for the world right now,” Duncan Clark concludes. “But obviously, it’s also a crisis for China’s relationship with the rest of the world. So they need anybody who can help dampen down some of these those pressures.”
TOKYO (Reuters) – Toyota Motor Corp (7203.T) on Friday said production at all of its China plants would remain suspended through Feb. 16, joining a growing number of automakers facing stoppages due to supply chain issues as the coronavirus spreads.
The Japanese automaker, which operates 12 vehicle and components factories in China, said it would extend its production stoppage “after considering various factors, including guidelines from local and region governments, parts supply, and logistics.
“For the week of Feb. 10, we will be preparing for the return to normal operation from Feb. 17 and beyond,” it said in a statement.
The decision extends Toyota’s initial plans to suspend operations through Sunday, and comes as the threat from the coronavirus crisis closes in on the global auto industry.
South Korea’s Hyundai Motor (005380.KS) and affiliate Kia Motors (000270.KS) said on Friday that they plan to restart production at their Chinese factories on Feb. 17, from a previously planned Feb.9.
“We will take preventive measures against infection at factories,” a spokeswoman said.
A growing number of car makers, including those who do not make cars in China, are flagging the possibility that their global operations could take a hit if they cannot access parts supplies from the country, where there are transportation bans to stop the virus spreading.
Suzuki Motor Corp said it was looking at the possibility of procuring “made in China” car parts from other regions if it cannot access parts due to ongoing stoppages.
The Japanese automaker does not produce or sell any cars in China, but procures some components there for its plants in India, where it controls around half of the passenger vehicle market via its local unit Maruti Suzuki India Ltd (MRTI.NS).
Fiat Chrysler Automobiles NV (FCHA.MI) on Thursday said one of its European plants could close within two to four weeks if Chinese parts suppliers cannot get back to work soon, while Hyundai Motor Co (005380.KS) earlier this week suspended production at its South Korean plants due to a shortage of China-made parts.
Parts made in China are used in millions of vehicles assembled elsewhere, and China’s Hubei province – the epicentre of the coronavirus outbreak – is a major hub for vehicle parts production and shipments.
To limit the spread of the virus, Chinese authorities have announced an extended holiday period in Hubei and 10 other provinces, which account for more than two-thirds of the country’s vehicle production.
IHS Automotive projects plant closures through Feb. 10 would result in a 7% cut in vehicle production in China for the first quarter.
In a note, its analysts said extended closures into March may result in lost production of over 1.7 million vehicles for the period, a decline of roughly one-third of pre-virus output expectations.
“If the situation lingers into mid-March, and plants in adjacent provinces are also idled, the China-wide supply chain disruption caused by parts shortages from Hubei, a major component hub, could have a wide-reaching impact,” they said.
Other industry experts said suppliers had built up a cushion of parts in inventory and in-transit ahead of the long Lunar New Year holiday in late January. Those will start to run out if factories cannot get back to work next week, or if flights to and from China remain limited.
Toyota said its plants outside China were operating as normal for the moment but it has said it was also considering the possibility of manufacturing parts commonly made in China in other regions.
Even though officials have sounded more positive about negotiations with the US recently, failure to achieve a deal would see tariffs on $200bn (£152bn) of Chinese goods rise almost immediately and could see the US impose fresh tariffs.
Still, Mr Evans-Pritchard said “broader weakness in global demand means that, even if Trump and Xi finalise a trade deal soon, the outlook for exports remains gloomy.”
Image copyrightGETTY IMAGESImage captionOne of China’s biggest ports is reported to have halted Australian coal imports
The Australian government says it is seeking an “urgent” clarification from Beijing over reports that a major Chinese port has halted imports of Australian coal.
Australia is a top supplier of coal to China, its biggest export market.
Beijing has not confirmed the reported halt in the port of Dalian, but called changes in such arrangements “normal”.
Canberra sought to play down speculation on Friday that the matter may be linked to bilateral tensions.
Australian officials said there was “confusion” over the situation, and they were consulting their Chinese counterparts.
“I wouldn’t jump to conclusions. The Australia-China trading relationship is exceptionally strong,” Treasurer Josh Frydenberg told the Australian Broadcasting Corporation.
Fears about the issue have prompted a fall in the Australian dollar.
What has happened?
On Thursday, Reuters reported that China’s Dalian port region would not allow Australian coal to pass through customs.
The news agency quoted officials as saying that only Australian coal had been affected, with no limits placed on Indonesian and Russian shipments.
It said other Chinese ports had delayed Australian coal shipments in recent months.
Image copyrightREUTERSImage captionCoal is Australia’s biggest export commodity
Australian trade officials said they had been notified of recent industry concerns about market access.
When asked about the reported halt, Chinese Foreign Ministry spokesman Geng Shuang offered general comments that authorities sought “to safeguard the rights and interests of Chinese importers and protect the environment”.
“The banning of those coal shipments is a form of coercion against Australia. It’s punishment against states that resist China’s pressure,” said Dr Malcolm Davis, from the Australian Strategic Policy Institute.
Other recent tensions have emerged over allegations – denied by Beijing – of Chinese interference in Australian politics and society.
However others, including the head of the Reserve Bank of Australia, have suggested that China’s concerns about its own coal industry may be behind any such halts.
Blocking “a couple of months of coal exports” would not hurt the Australian economy, said Philip Lowe.
“If it were to be the sign of a deterioration in the underlying political relationship between Australia and China then that would be more concerning,” he said.
Mr Frydenberg said: “We can see these occasional interruptions to the smooth flow but that doesn’t necessarily translate to some of the consequences that aspects of the media might seek to leap to.”
(Reuters) – Smartphone shipments in China fell between 12-15.5 percent last year, market data indicated, suggesting a bleak outlook for the sector at a time when behemoths Apple (AAPL.O) and Samsung Electronics (005930.KS) have already issued dour forecasts.
China Academy of Information and Communications Technology (CAICT), a research institute under the country’s Ministry of Industry and Information Technology, said shipments dropped 15.5 percent to roughly 390 million units for the year, with a 17 percent slump in December.
Market research firm Canalys estimates shipments fell 12 percent in China last year and expects smartphone shipments in 2019 to dip below 400 million for the first time since 2014.
The Chinese smartphone market, the world’s largest, could shrink another 3 percent this year, Canalys said, in what would be a third straight year of declines. Smartphone shipments in the country had fallen 4 percent in 2017.
Shipments are the number of smartphones that manufacturers deliver to retailers and carriers, different from sales that happen when customers actually buy these smartphones.
The plunge in Chinese shipments expected in 2018 could lead to a 1 percent contraction in the global smartphone market, Canalys said.
Apple triggered a selloff in global markets last week after it took the rare step of cutting its quarterly sales forecast citing slowing iPhone sales in China.
China boasts the world’s biggest smartphone market, but a slowing economy, exacerbated by a trade war with the United States, has seen demand for gadgets drop across the tech sector.
TuanAnh Nguyen, a Singapore-based analyst for Canalys, told Reuters that China was now a fully mature market and lengthening refresh cycles for smartphones would be the new normal.
“Weaker economic growth and lower consumer confidence will likely hit the premium segment well into the first half of 2019,” Nguyen said.
“Apple certainly was the biggest victim of this trend, with added effects from the fact that it’s lagging behind local competitors in innovation and attractive pricing,” he said.
Apple rival and supplier Samsung on Tuesday estimated that its fourth-quarter earnings plunged 29 percent and that profitability would remain subdued in the current quarter due to weak demand for its memory chips.
Also, Samsung’s display business is struggling due to the lack of growth of its own devices as well as worse-than-expected performance of Apple’s X/XS/XS Max iPhone series, Nguyen said.
Image copyright GETTY IMAGES
Image copyright GETTY IMAGES
Image copyright GETTY IMAGES
CHINDIA ALERT: You'll be living in their world, very soon 