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.
NEW YORK/SAN FRANCISCO (Reuters) – Amazon.com Inc (AMZN.O) has bought cameras to take temperatures of workers during the coronavirus pandemic from a firm the United States blacklisted over allegations it helped China detain and monitor the Uighurs and other Muslim minorities, three people familiar with the matter told Reuters.
China’s Zhejiang Dahua Technology Co Ltd (002236.SZ) shipped 1,500 cameras to Amazon this month in a deal valued close to $10 million, one of the people said. At least 500 systems from Dahua – the blacklisted firm – are for Amazon’s use in the United States, another person said.
The Amazon procurement, which has not been previously reported, is legal because the rules control U.S. government contract awards and exports to blacklisted firms, but they do not stop sales to the private sector.
However, the United States “considers that transactions of any nature with listed entities carry a ‘red flag’ and recommends that U.S. companies proceed with caution,” according to the Bureau of Industry and Security’s website. Dahua has disputed the designation.
The deal comes as the U.S. Food and Drug Administration warned of a shortage of temperature-reading devices and said it wouldn’t halt certain pandemic uses of thermal cameras that lack the agency’s regulatory approval. Top U.S.-based maker FLIR Systems Inc (FLIR.O) has faced an up to weeks-long order backlog, forcing it to prioritize products for hospitals and other critical facilities.
Amazon declined to confirm its purchase from Dahua, but said its hardware complied with national, state and local law, and its temperature checks were to “support the health and safety of our employees, who continue to provide a critical service in our communities.”
The company added it was implementing thermal imagers from “multiple” manufacturers, which it declined to name. These vendors include Infrared Cameras Inc, which Reuters previously reported, and FLIR, according to employees at Amazon-owned Whole Foods who saw the deployment. FLIR declined to comment on its customers.
Dahua, one of the biggest surveillance camera manufacturers globally, said it does not discuss customer engagements and it adheres to applicable laws. Dahua is committed “to mitigate the spread of the COVID-19” through technology that detects “abnormal elevated skin temperature — with high accuracy,” it said in a statement.
The U.S. Department of Commerce, which maintains the blacklist, declined comment. The FDA said it would use discretion when enforcing regulations during the public health crisis as long as thermal systems lacking compliance posed no “undue risk” and secondary evaluations confirmed fevers.
Dahua’s thermal cameras have been used in hospitals, airports, train stations, government offices and factories during the pandemic. International Business Machines Corp (IBM.N) placed an order for 100 units, and the automaker Chrysler placed an order for 10, one of the sources said. In addition to selling thermal technology, Dahua makes white-label security cameras resold under dozens of other brands such as Honeywell, according to research and reporting firm IPVM.
Honeywell said some but not all its cameras are manufactured by Dahua, and it holds products to its cybersecurity and compliance standards. IBM and Chrysler’s parent Fiat Chrysler Automobiles NV (FCHA.MI) did not comment.
The Trump Administration added Dahua and seven other tech firms last year to the blacklist for acting against U.S. foreign policy interests, saying they were “implicated” in “China’s campaign of repression, mass arbitrary detention, and high-technology surveillance against Uighurs, Kazakhs, and other members of Muslim minority groups.”
More than one million people have been sent to camps in the Xinjiang region as part of China’s campaign to root out terrorism, the United Nations has estimated.
Dahua has said the U.S. decision lacked “any factual basis.” Beijing has denied mistreatment of minorities in Xinjiang and urged the United States to remove the companies from the list.
A provision of U.S. law, which is scheduled to take effect in August, will also bar the federal government from starting or renewing contracts with a company using “any equipment, system, or service” from firms including Dahua “as a substantial or essential component of any system.”
Amazon’s cloud unit is a major contractor with the U.S. intelligence community, and it has been battling Microsoft Corp (MSFT.O) for an up to $10 billion deal with the Pentagon.
Top industry associations have asked Congress for a year-long delay because they say the law would reduce supplies to the government dramatically, and U.S. Secretary of State Mike Pompeo said last week that policies clarifying the implementation of the law were forthcoming.
FACE DETECTION & PRIVACY
The coronavirus has infected staff from dozens of Amazon warehouses, ignited small protests over allegedly unsafe conditions and prompted unions to demand site closures. Temperature checks help Amazon stay operational, and the cameras – a faster, socially distant alternative to forehead thermometers – can speed up lines to enter its buildings. Amazon said the type of temperature reader it uses varies by building.
To see if someone has a fever, Dahua’s camera compares a person’s radiation to a separate infrared calibration device. It uses face detection technology to track subjects walking by and make sure it is looking for heat in the right place.
An additional recording device keeps snapshots of faces the camera has spotted and their temperatures, according to a demonstration of the technology in San Francisco. Optional facial recognition software can fetch images of the same subject across time to determine, for instance, who a virus patient may have been near in a line for temperature checks.
Amazon said it is not using facial recognition on any of its thermal cameras. Civil liberties groups have warned the software could strip people of privacy and lead to arbitrary apprehensions if relied on by police. U.S. authorities have also worried that equipment makers like Dahua could hide a technical “back door” to Chinese government agents seeking intelligence.
In response to questions about the thermal systems, Amazon said in a statement, “None of this equipment has network connectivity, and no personal identifiable information will be visible, collected, or stored.”
Dahua made the decision to market its technology in the United States before the FDA issued the guidance on thermal cameras in the pandemic. Its supply is attracting many U.S. customers not deterred by the blacklist, according to Evan Steiner, who sells surveillance equipment from a range of manufacturers in California through his firm EnterActive Networks LLC.
“You’re seeing a lot of companies doing everything that they possibly can preemptively to prepare for their workforce coming back,” he said.
BEIJING (Reuters) – China announced on Wednesday that its parliament will open a key annual session on May 22, signalling that Beijing sees the country returning to normal after being reduced to a near-standstill for months by the COVID-19 epidemic.
During the gathering of the National People’s Congress in the capital, delegates will ratify major legislation, and the government will unveil economic targets, set defence spending projections and make personnel changes. The ruling Communist Party also typically announces signature policy initiatives.
The session was initially scheduled to start on March 5 but was postponed due to COVID-19, which has infected nearly 83,000 people and killed more than 4,600 on the mainland after emerging late last year in the central city of Wuhan.
As the epidemic has subsided, economic and social life gradually returned to normal, making it possible for the congress to convene, the official Xinhua news agency quoted the standing committee of the NPC, the legislature’s top decision-making body, as saying.
The committee also appointed Huang Runqiu as the new minister for ecology and environment, a post vacated when predecessor Li Ganjie became deputy Communist Party chief for Shandong province earlier this month, Xinhua reported.
Tang Yijun was also named as the new justice minister to replace Fu Zhenghua, who has reached the retirement age of 65 for ministers.
The Chinese People’s Political Consultative Conference (CPPCC), an advisory body to parliament, has proposed starting its annual session a day before the parliamentary session opens.
Analysts expect China to roll out additional fiscal stimulus in order to cushion the blow from COVID-19, which has developed in to a worldwide pandemic that some fear will trigger a severe global recession.
China’s economy contracted for the first time on record during the January-March period, when the government imposed severe travel and transport restriction to curb the spread of the epidemic.
Parliament is also expected to discuss the anti-government protests in Hong Kong, amid growing speculation that Beijing take steps to strengthen its grip on the city.
It is unclear how long parliament and its advisory body will meet for this time, and people familiar with the matter have told Reuters that this year’s annual sessions could be the shortest in decades due to COVID-19 concerns. Usually more than 5,000 delegates descend on Beijing from all over China for at least 10 days.
Beijing city plans to ease quarantine rules as early as Thursday, two sources familiar with the situation told Reuters, ahead of the key political meetings.
People arriving in the capital from other parts of China will no long have to be quarantined for two weeks unless they come from high-risk areas such as Heilongjiang in the north and some parts of Guangdong in the southeast, the sources said.
BEIJING, April 28 (Xinhua) — China’s youth organizations awarded May Fourth Medals to 94 individuals and 34 groups Tuesday for their great contributions to the country.
The medals, which are awarded annually, are the top honor for young Chinese. The Central Committee of the Communist Youth League and the All-China Youth Federation released the list of winners.
Medical teams assisting Hubei Province to combat the novel coronavirus disease (COVID-19) epidemic are among the groups awarded.
Covering a wide range of sectors, the individual winners include firefighters, military personnel, scholars, teachers, engineers, workers and medical staff.
Among the list, 34 were honored posthumously, including those who sacrificed their lives in the fight against COVID-19.
Taiwan Strait and South China Sea are settings for China and the US to assert influence and defiance
Analysts warn costly missteps and miscalculations are possible amid rift
Illustration: Henry Wong
This is the fourth in a series exploring the global backlash that China may face as a result of its actions and rhetoric during the coronavirus pandemic. This story examines the outlook from a military viewpoint, including relations in the South China Sea, with China’s neighbours and with the United States.
As the USS Barry, one of the US’ most advanced destroyers, sailed through the Taiwan Strait last Thursday, an officer on board posted a message on Facebook: “They don’t call us the Finest Forward Deployed Destroyer for nothing! Your Bulldogs always have the watch – together, we ensure a free and open Indo-Pacific!”
Based in Yokosuka, Japan, the guided-missile destroyer was no stranger to the sensitive channel separating Taiwan and mainland China. In fact, this was its second passage through the 180km [112-mile]-wide waterway – defined as part of the South China Sea under international protocol – this month.
As the Covid-19 global health crisis continues to rage around the world, infecting more than 3 million people and causing more than 210,000 deaths, military manoeuvres are being analysed to see if the pandemic has changed the balance of force in the region.
American warships were just some of the frequent naval visitors to the Taiwan Strait. The Chinese military has also made its presence felt. The Liaoning, China’s first aircraft carrier paraded through the waterway with its strike group just one day before the USS Barry arrived.
And then on Tuesday, China’s Southern Theatre Command, which oversees the South China Sea, issued a stern warning against the “intrusion” of the USS Barry into the surrounding waters of the Paracel Islands. China calls them the Xisha Islands and Vietnam calls them the Hoang Sa Islands.
“These provocative acts by the US side … seriously violated China’s sovereignty and security interests, deliberately increased regional security risks and they could easily trigger unexpected incidents,” a spokesman of the command said.
The frequency of such tours has raised concerns among military observers and analysts that these exercises could lead to miscalculation as different countries use their militaries to jostle for greater influence or rattle the sabre amid the pandemic.
“Adversaries who think now is the time to challenge the #USA: you’re dangerously wrong,” United States Secretary of Defence Mark Esper tweeted in mid-April.
And on Wednesday last week he tweeted: “Do not test our resolve. Our service members continue to demonstrate why the American people call on the US military during the most trying times.”
The Covid-19 pandemic has plunged already strained
into a deepening rift as officials from both sides engage in a blame game about delays that have allowed the contagious disease to spread.
Experts are now looking at how the pandemic will affect other aspects of China’s international relations.
Zhu Feng, a professor of international relations at Nanjing University in eastern China, expressed worry that Beijing and Washington had grown even further apart because of the pandemic.
“China and the US are supposed to work together to battle this world-sweeping deadly contagion, but what worries me most is that the geopolitical strategic competition and differences between the two countries have widened because of the pandemic,” he said.
Zhu said Washington’s growing cosiness with Taipei had also alarmed Beijing.
While Taiwan was a key security issue in the region, analysts warned that manoeuvring by nations had increased the risk of turning the Indo-Pacific area into a tinderbox.
This month, the US Navy’s amphibious assault ship and a Japanese navy Murasame-class destroyer conducted three-day bilateral communications exercises and division tactics in the Philippine Sea and the East China Sea. The East China Sea is the site of territory disputes between Beijing and Tokyo over the
The joint drills came 10 days after a collision between a Japanese destroyer and a Chinese fishing vessel in the East China Sea, causing a hole in the destroyer. No one was hurt, according to the Japanese defence ministry.
On Tuesday last week, another US amphibious assault ship and a guided-missile cruiser joined with an Australian frigate.
They entered the contested waters off Malaysia, where a Chinese government survey vessel, the Haiyang Dizhi 8, has been operating close to a drill ship under contract to the Malaysian state oil company, Petronas, according to a report from Reuters citing regional security sources.
“The show of force of the US and Australian warships in the South China Sea was aimed at warning China: ‘The pandemic will not give you any opportunity to change the current balance of power [in the region]’,” Zhu said.
“And [it also means to] tell Malaysia and other Southeast Asian countries that no matter how the pandemic develops, the US is still Big Brother in the region,” he added.
The South China Sea remains one of the biggest stress points in Asia. Beijing claims almost all of the area but has conflicting claims with Vietnam, the Philippines, Taiwan, Malaysia and Brunei. The conflict has remained unresolved for decades and has now become another flash point with the US.
Alexander Huang Chieh-cheng, a former deputy minister on Taiwan’s Mainland Affairs Council, which handles the island’s ties with the mainland, said China and the US were tangled in a bitter competition.
“In comparative terms, the US presence has been a response to increased People’s Republic of China’s ‘far sea navigation training’ with its newly acquired air and naval assets,” Huang said, referring to Beijing’s expanded military clout.
The US Navy Ticonderoga-class guided missile cruiser USS Bunker Hill, front, and Arleigh-Burke class guided-missile destroyer USS Barry in the South China Sea on April 18. Photo: US Navy
“The US wants to reassure [its allies of] its commitment to the security and stability in the Taiwan Strait, as well as in the larger Indo-Pacific region.
“[Chinese President] Xi Jinping has said that the vast Pacific Ocean is big enough to accommodate both the PRC [People’s Republic of China] and the US. However the PRC’s build-up in the South China Sea and training exercises have, in the eyes of Americans, threatened the freedom of navigation and challenged the US predominance in maritime Asia.”
Drew Thompson, a former US defence official and now a senior research fellow at National University of Singapore’s Lee Kuan Yew School of Public Policy, wrote in a recent paper that China under Xi’s leadership has taken a more aggressive stance in dealing with its neighbours.
“Xi Jinping’s rise to power has heralded a new foreign policy that is more assertive and uncompromising toward China’s neighbours, the US and the rest of the world,” he wrote.
He warned that Xi’s assertiveness would put China’s diplomatic and defence policies at higher risk, especially given Beijing’s determination to resolve the Taiwan problem.
“The pandemic does not fundamentally change the military or strategic balance across the Taiwan Strait but it potentially increases the possibility of miscalculation if Beijing thinks its handling of the pandemic gives it a military advantage,” Thompson told the South China Morning Post.
Last week, the PLA’s Eastern Theatre Command, which covers China’s eastern seaboard, published four belligerent articles emphasising the urgency for the Chinese military to strengthen its combat readiness as the country faced challenges at home and abroad during the pandemic and that the PLA (People’s Liberation Army) must play a “pivotal role in safeguarding China’s national interests”.
Separately, an analysis published in mid-April said that following the Covid-19 pandemic, the voice of “unifying Taiwan by force” had become “louder and louder” on the mainland. It was published on a media website affiliated with the mainland’s Taiwan Affairs Office, which oversees Beijing’s policies on the island.
Citing opinions by retired PLA generals, the analysis said the US would not go to war with China over Taiwan, other than providing the island with intelligence and weapons.
But Collin Koh, a research fellow of the S Rajaratnam School of International Studies at Singapore’s Nanyang Technological University, cautioned that such an assumption was risky.
“It’s unwise to underestimate the resolve of the Trump administration, given that in recent times it’s been putting more focus on enhancing strategic ties with Taiwan, having seen the island as a crucial element to its Indo-Pacific strategy,” Koh said.
“US credibility is at stake if it’s shown to be unwilling to defend its allies.”
Michael Jones, former chief of staff of US Central Command, was quoted by the Military Times, a US-based military news website, saying it had become imperative for US diplomats to reach out abroad and explain Washington’s intention to avoid mistakes and misunderstandings.
“Covid-19 merely is a factor that can lead to miscalculation,” Jones was quoted as saying. “If they [US adversaries] were to assume this is one more distraction that would keep the US from responding to an attack or challenge, it could add to the possibility of miscalculation.”
Image copyright BRENDAN SMIALOWSKIImage caption Kim Jong-un has not been seen in public for more than two weeks
Speculation and rumour about Kim Jong-un’s health may amount to nothing, but questions about who might succeed him in the short or long term will always be there. The BBC spoke to analysts about the contenders and whether history is on their side.
A male member of the Kim family has been in charge of North Korea ever since its founding by Kim Il-sung in 1948 – and the mythology of this family runs deep throughout society.
Propaganda about its greatness begins for citizens before they can even read: pre-schoolers sing a song called: “I want to see our leader Kim Jong-un.”
So how can you imagine a North Korea without this symbolic and political figure at the top? How would elites organise themselves, as well as society as a whole?
The easy answer is: we don’t know. More interestingly, they don’t know either. They have never had to do it.
Image copyrightXINHUAImage captionKim Il-sung is the founder of North Korea and his son Kim Jong-il took over
As Kim Jong-un was being prepared for power, they even began using the term “Paektu Bloodline” to help legitimise his rule. Paektu is the sacred and mythologised mountain where Kim Il-sung is said to have waged guerrilla war and where Kim Jong-il was reportedly born. Kim Jong-un still goes there when he wants to emphasise important policy decisions.
There has always been a Kim at the ideological heart of the country.
What would North Korea be like without such an heir? Kim Jong-un, 36, is believed to have children – but they are far too young. It is thought he has three children, the oldest being 10 and the youngest three. Kim Jong-un himself was considered young when he took power – he was 27.
It is likely that some sort of group leadership would emerge, perhaps as in Vietnam, that leans heavily on the founder’s teachings and legitimacy to boost their own standing.
Observers can track who holds certain key positions and can follow news and open-source intelligence about important institutions, but can’t really tell how factions are developing, nor who is holding power through personal rather than institutional bonds. Moreover, sometimes vice or deputy directors wield more real power than the titular heads of institutions. This makes all predictions extremely difficult.
The three remaining Kims
Image copyrightPATRICK SEMANSKY – POOL /GETTY IMAGESImage captionKim Yo-jong, as the only woman in the top leadership, has sparked fascination
The are three Kims who could potentially be involved in the political make-up of North Korea if Kim Jong-un were to disappear. They all face limitations in carrying on family rule.
The first is Kim Yo-jong, Kim Jong-un’s younger sister. She is said to have been a favourite of her father who commented on her precocity, her interest in politics from a young age. Her manner is efficient, mild and one suspects rather observant. Much has been made of her closeness to her brother. At the Singapore Trump-Kim summit she was famously on hand to pass him a pen to sign the agreement with, and at the next summit in Hanoi, was pictured peeking out from behind corners as her brother posed for statesman-like photos.
Yet she was not above a temporary demotion after the Hanoi summit – purportedly because of its failure although this will never be confirmed. She doesn’t sit on the top policy-making body, the State Affairs Commission, but is an alternate member of the Politburo and vice director of the Propaganda and Agitation Department (PAD) of the Workers’ Party of Korea. These may seem like incomprehensible acronyms but the PAD is a powerful organisation that ensures ideological loyalty in the system.
She is a woman, however, and this makes it hard to imagine her occupying the top position in such a deeply patriarchal country. North Korea is an extremely male state, in which gender carries rigid expectations. Being supreme leader, and certainly running the military, does not fit in the range of womanly duties.
The second is Kim Jong-chul. He is Kim Jong-un’s older brother, but has never appeared interested in politics or power. (He is known to be interested in Eric Clapton.) At most, he could be a symbolic link to the Kim family: perhaps made the head of a foundation and put forward to read the odd speech.
The final one is Kim Pyong-il, Kim Jong-il’s half-brother. His mother – Kim Jong-il’s stepmother – was angling to have him become Kim Il-sung’s successor. She failed and was sidelined by Kim Jong-il as he rose in influence. Kim Pyong-il was sent to Europe in 1979, where he has held various ambassadorships, returning to North Korea only last year. This means it is very unlikely he has the network to be a central player in elite politics in Pyongyang.
The second-most powerful man in North Korea right now
Image copyrightALEXANDER NEMENOV/AFP VIA GETTY IMAGESImage captionAs special envoy for Kim Jong-un Choe Ryong-hae (right) has met foreign dignitaries
There are other individuals who have been central in the Kim Jong-un era, but it is difficult to know who among them would form co-operative relationships and who would compete with one another.
One is Choe Ryong-hae. He has had his ups and downs under Kim Jong-un, but having weathered a few storms currently sits on the presidium of the politburo and is also first vice chairman of the State Affairs Commission. Last year he became the first new president in 20 years, replacing the aging Kim Yong-nam – so he is the person who represents the North at international engagements.
Choe has also held high positions in the military and the Organization and Guidance Department (OGD) of the Worker’s Party of Korea, responsible for enforcing loyalty throughout the regime. This is an extremely powerful organisation: it enforces the adherence of all citizens to North Korea’s ideology. He is probably the second most powerful man in North Korea.
The old spymasters and rising political grandees
Image copyrightOLIVIER DOULIERY-POOL/GETTY IMAGESImage captionKim Yong-chol travelled to Washington DC to meet Donald Trump
Another is Kim Yong-chol. This general paved the way for the Trump-Kim summits, meeting US Secretary of State Mike Pompeo several times. He has been head of the United Front Department (responsible for relations with South Korea) and the Reconnaissance General Bureau, the country’s main intelligence service. He seems to have suffered a demotion following the collapse talks with the United States, but it is unlikely this spymaster will remain obscure for long.
Yet another is Kim Jae-ryong. As well as being on the State Affairs Commission, he is Premier of the Cabinet, a moderately influential position. Relatively little is known about him, but his star has risen in the past years as others have fallen. He is known for managing industries and ran the most isolated province, home to key military-industrial sites, for several years. This may mean he has been closely involved in the nuclear program.
Jong Kyong-taek is responsible for the State Security Department, which investigates and punishes political crimes. It also helps physically protect the leadership. These are crucial responsibilities that help enforce stability in the system.
Hwang Pyong-so is another official who has held top military posts and has run the OGD in the Kim Jong-un era. Like Choe (and many others) he has been disciplined; he doesn’t seem to have been rehabilitated in the same way, however. Other 2010s foreign policy stalwarts Ri Yong-ho and Ri Su-yong have also seen roles diminish recently. They have been replaced by Ri Son-gwon and Kim Hyung-jun. The former is said to be an ally of Kim Yong-chol.
The military enforcers
A handful of top generals of the Korean People’s Army (KPA) would also certainly exert influence in any transition period. Currently, two men sit atop the General Political Bureau of the KPA, Kim Su-gil and Kim Won-hong. This bureau enforces political loyalty in the military, something that would be absolutely crucial during periods of uncertainty.
Kim Won-hong, helps illustrate how difficult it is to predict how power would be shared if Kim Jong-un were no longer there. Kim Won-hong and Hwang Pyong-so had been thought to be rivals, competing to influence Kim Jong-un at the other’s expense.
Amongst top elites, who would clash and who would ally? Would there be pro and anti-Kim Yo-jong factions? Would the fear of instability stop rivalries from getting out of hand? After all, it is in no elite politician’s interest to see the state collapse, opening the door for some kind of takeover by South Korea, or even China.
There is currently no perfect contender: his sister would have to overcome the sexism and the break from tradition of a male heir. Anybody else is not directly descended from that all-important Paektu bloodline. but in the end, they will all have to think of the unity of the state they have defied every international norm to preserve.
SHANGHAI (Reuters) – Apple Inc’s (AAPL.O) discounts on the iPhone 11 in China and the release of a new low-price SE model have put the company in a better position than rivals to weather a coronavirus-related plunge in global smartphone demand.
While China, which accounts for roughly 15% of Apple’s revenue, appears to be a rare bright spot, investors will be keen to get a picture of global demand when the Cupertino, California-headquartered company reports second-quarter results on Thursday.
The iPhone maker has shut retail stores in the United States and Europe following the COVID-19 outbreak, and China is the only major market where it has been able to reopen all shops.
Consumer spending is expected to be muted as the pandemic has crippled economies and Apple, the world’s second-most valuable tech company, is better armed with the launch of its new price-conscious iPhone model, analysts said.
“Apple is better positioned than most to experience a rapid recovery in a post COVID world,” Evercore analyst Amit Daryanani said in a research note. “We see demand as pushed out, not canceled.”
He added that the launch of the $399 iPhone SE suggested that Apple’s supply chain was getting back on its feet after weeks of shutdown earlier this year.
Analysts expect Apple to report a 6% drop in revenue and an 11% fall in net income in its fiscal second quarter, according to Refinitiv data.
On the other hand, Chinese brands such as Oppo and Vivo who have steadily moved to offer high-end models to challenge iPhones, stand to lose marketshare as bargain hunters choose Apple.
Earlier this month, several online retailers in China slashed prices of the iPhone 11 by as much as 18% – a tactic Apple has used in the past to boost demand. And while initial social media reaction to the new iPhone SE was muted, analysts said they were seeing a pick up in demand.
The cheaper iPhone SE could tempt iPhone owners to opt for a newer device, something they might have otherwise delayed in a weak economy, said Nicole Peng, who tracks the smartphone sector at research firm Canalys.
“People want to avoid uncertainty in a downturn,” she said. “Having a brand like Apple that can showcase quality and make people less worried about breakdowns or after-sales service can bring in buyers.”
CHEAP IS GOOD
Early data suggests that the Chinese smartphone market is recovering rapidly in the aftermath of the virus, and Apple has emerged relatively unscathed.
Sales of iPhones in China jumped 21% last month from a year earlier and more than three fold from February, government data showed, meaning March-quarter sales in the country were likely to have slipped just 1%.
To be sure, a recovery in Chinese demand won’t offset sales lost in the United States and Europe. And the company is yet to launch a smartphone enabled with 5G wireless technology like those offered by Asian rivals, a disadvantage for Apple so far.
But those same expensive 5G models may not sell well in the current climate of frugality, analysts said.
“If there are no massive subsidies (in China), I doubt there will be many smartphone users who will be eager to upgrade to 5G,” said Linda Sui, who tracks the smartphone sector at research firm Strategy Analytics.
Sui expects iPhone shipments in 2020 to be down 2 percentage points at the most, versus double digit declines at Chinese firms.
Apple also has revenue from its services business to fall back on. It has leveraged its large iPhone customer base to boost services revenue from music, apps, gaming and video.
“Apple’s Services segment should remain resilient in today’s work-from-home environment, thereby demonstrating the durability of Apple’s model,” Cowen analyst Krish Sankar said.
QINGDAO, April 27 (Xinhua) — New cargo train services have been launched between east China’s Shandong Province and countries of Shanghai Cooperation Organization (SCO).
A train carrying 45 containers departed Monday from the intermodal transportation center of the demonstration zone for China-SCO local economic and trade cooperation in the city of Qingdao, according to the demonstration zone.
The train, loaded with excavators and land levelers worth a total of 20 million yuan (2.8 million U.S. dollars), is expected to arrive at Almaty, Kazakhstan, in eight days.
With the intermodal transportation center in Qingdao as the cargo distribution center, the monthly train services will deliver cargo to more than 30 cities of SCO countries, including Tashkent, Minsk and Ulan Bator.
Beijing’s Chaoyang district remains the last high-risk area in China, with virus preventive measures continuing to impact on travel and shopping plans
China faces the dilemma of preventing a re-emerge of the pandemic, while also pushing to get its economy back to normal
China’s continued pandemic prevention measures, coupled with still hesitant consumer demand, will inevitably lead to persistent limitations on the nation’s economic recovery, analysts said. Photo: Bloomberg
After nearly three months of being quarantined by herself in Beijing, Mary Zhao was looking forward to the upcoming long weekend at the start of May to be able to finally reunite with her parents.
But Zhao was forced to abandon her plan for the Labour Day holidays as Beijing’s upmarket Chaoyang district, where she lives, remains the only high-risk zone for coronavirus in the entire country.
If she travelled the five hours by car, or two hours via bullet train, to the neighbouring Hebei province, she would first have to undergo a 14-day quarantine before seeing her parents. Her parents would also have the same two week quarantine to look forward to once they returned home if they came to visit their daughter in Beijing.
These strict controls to prevent a re-emergence of the coronavirus outbreak are making a return to normal life impossible for many, and mean the final economic and social cost
from China’s draconian preventive measures could be much larger than expected.
Wuhan declares ‘victory’ as central Chinese city’s last Covid-19 patients leave hospital
It underscores the dilemma facing China’s leaders on how to balance the need to
and to avoid a fresh outbreak. On the surface, China may be able to declare victory as even Wuhan, the city where the virus was first detected, announced that the last Covid-19 patient had left hospital on Sunday. But fears of a renewed outbreak have kept the country’s cinemas and most schools closed, with travel between provinces discouraged.
China’s national borders also remain largely closed, with flights being cut to a minimum, and a mandatory 14-day quarantine for every arrival. In the number of places where new cases have been reported, quarantine requirements have been tightened, including Harbin and a few other cities near the border with Russia.
Chaoyang, the home to one of Beijing’s main business districts and most foreign embassies, changed its risk rating to high from low in the middle of April after three new cases were reported, dealing a fresh blow to the district’s
and forcing many of the 3.5 million residents to cancel their travel plans.
On the outskirts of Beijing, near Beijing Capital International Airport, returning migrant workers to Picun village were ordered to stop at entrance and could only be escorted inside by their landlord, with many villages and residential compounds remaining closed to outsiders.
In the high-end shopping district of Guomao, some shops also remain closed as there are few potential customers, while over in the popular Sanlitun area, metal barriers restrict access and temperature checkpoints are still required.
The landmark Apple Store in the popular Taikoo shopping centre is open, but with limited customers allowed inside, there are long queues outside. Customers are required to scan a QR code to check their movements over the last few days before entering.
Coronavirus: More schools reopen in China for students preparing for university entrance exams
“Why do I have to spend 20 minutes just to get into the Apple Store? The sun has almost melted me down,” one visitor complained to the security guards at the front of the shop.
China’s continued pandemic prevention measures, coupled with still hesitant consumer demand, will inevitably lead to persistent limitations on the nation’s economic recovery, analysts said.
Ernai Cui, an economist at research firm Gavekal Dragonomics, said on Monday that China’s cautious approach to lifting restrictions “points to a weak second quarter for consumer services”, adding additional pressure to the economic recovery.Mao Zhenhua, a researcher at the China Institute of Economics at Renmin University, said China’s preventive measures will inevitably be a drag on production, employment and exports.
BEIJING (Reuters) – China’s factory activity likely rose for a second straight month in April as more businesses re-opened from strict lockdowns implemented to contain the coronavirus outbreak, which has now paralysed the global economy.
The official manufacturing Purchasing Manager’s Index (PMI), due for release on Thursday, is forecast to fall to 51 in April, from 52 in March, according to the median forecast of 32 economists polled by Reuters. A reading above the 50-point mark indicates an expansion in activity.
While the forecast PMI would show a slight moderation in China’s factory activity growth, it would be a stark contrast to recent PMIs in other economies, which plummeted to previously unimaginable lows.
That global slump, caused by heavy government-ordered lockdowns, as well as the cautious resumption of business in China, suggests any recovery in the world’s second-largest economy is likely to be some way off.
“The recovery so far has been led by a bounce-back in production, however, the growth bottleneck has decisively shifted to the demand side, as global growth has weakened and consumption recovery has lagged amid continued social distancing,” Morgan Stanley said in a note.
“The expected slump in external demand has likely capped further recovery in industrial production.”
The latest official data showed 84% of mid-sized and small business had reopened as of April 15, compared with 71.7% on March 24.
Hobbled by the coronavirus, China’s economy shrank 6.8% in the first quarter from a year earlier, the first contraction since current quarterly records began.
That has left Chinese manufacturers with reduced export orders and a logistics logjam, as many exporters grapple with rising inventory, high costs and falling profits. Some have let workers go as part of the cost-cutting efforts.
A China-based brokerage Zhongtai Securities estimated that the country’s real unemployment rate, measured using international standards, could exceed 20%, equal to more than 70 million job losses and much higher than March’s official reading of 5.9%.
Sheng Laiyun, deputy head at the statistics bureau, said on Sunday migrant workers and college graduates are facing increasing pressures to secure jobs, while official jobless surveys show nearly 20% of employed workers not working in March.
Chinese authorities have rolled out more support to revive the economy. The People’s Bank of China earlier in April cut the amount of cash banks must hold as reserves and reduced the interest rate on lenders’ excess reserves.
Pupils given headwear modelled on a style worn by officials a thousand years ago to reinforce the message that they must stay a metre away from each other
One legend says the hats were given long extensions to stop courtiers whispering among themselves when meeting the emperor
Hats with long extensions were worn by officials during the Song dynasty. Photo: Handout
An ancient Chinese hat has joined face masks and hand sanitisers as one of the weapons in the fight against Covid-19.
A primary school in Hangzhou in the east of the country took inspiration from the headgear worn by officials in the Song dynasty, which ruled China between 960 and 1279, to reinforce lessons on social distancing.
Pupils at the school wore their own handmade versions of the hats, which have long extensions, or wings, to keep them at least a metre (3ft) apart when they returned to school on Monday, state news agency Xinhua reported.
One legend says that the first Song emperor ordered his ministers to wear hats with two long wings on the sides so that they could not chitchat in court assemblies without being overheard, according to Tsui Lik-hang, a historian at City University of Hong Kong.
Pupils at a school in Hangzhou made their own versions of the hats. Photo: Weibo
However, he warned that this story came from a much later source, adding: “The Song emperors, in fact, were also depicted to have worn this kind of headwear with wing-like flaps.”
The World Health Organisation recommends that people stay at least a metre apart to curb the spread of the coronavirus that causes Covid-19.
Coronavirus droplets may travel further than personal distancing guidelines, study finds
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“If you are too close, you can breathe in the droplets, including the Covid-19 virus if the person coughing has the disease,” the global health body advises.
An early childhood education specialist said the hats were a good way to explain the concept of social distancing to young children, who find it difficult to understand abstract concepts.
The pupil’s head gear is designed to drive home the social distancing message. Photo: Weibo
“As children can see and feel these hats, and when the ‘wings’ hit one another, they may be more able to understand the expectations and remember to keep their physical distance,” said Ian Lam Chun-bun, associate head of the department of early childhood
Using pictures of footprints to indicate the right distance to keep when queuing, standing, and even talking to schoolmates was also helpful, said Lam, who recommended visual aids and aids that stimulate other senses, such as hearing and touch.
“We can use sharp colours or special textures, like tactile paving,” he added.
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