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SCHWEIZER BOTSCHAFT IN BEIJING
EMBASSY OF SWITZERLAND IN BEIJING
AMBASSADE DE SUISSE EN CHINE

Der wöchentliche Presserückblick der Schweizer Botschaft in der VR China
The Weekly Press Review of the Swiss Embassy in the People's Republic of China
La revue de presse hebdomadaire de l'Ambassade de Suisse en RP de Chine
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  20-23.1.2020, No. 801  
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Switzerland

Chinese vice premier visits Switzerland (Xinhua)
2020-01-22
At the invitation of Guy Parmelin, vice president of the Swiss Confederation, Chinese Vice Premier Han Zheng visited Switzerland from Monday to Tuesday. Han met with Simonetta Sommaruga, president of the Swiss Confederation, and held talks with Parmelin. He also took part in the China-Switzerland "Belt and Road" capacity building forum. During his visit, Han recalled that Chinese President Xi Jinping and the Swiss leaders agreed in 2016 on forging an innovative strategic partnership between the two countries, which has charted the course for the development of bilateral relations. This year marks the 70th anniversary of the diplomatic relations between the two countries, Han noted, adding that the Chinese side is willing to take it as an opportunity to consolidate their traditional friendship and deepen practical cooperation so as to push for a steady development of the China-Switzerland innovative strategic partnership. Han said that the content of the innovative strategic partnership has been increasingly enriched and the two sides have continuously made new and positive progress in their bilateral cooperation in investment, finance, technology as well as people-to-people and cultural exchanges. China is willing to work with the Swiss side in strengthening trade and financial cooperation, stimulating new vitality of technology and innovation cooperation, and pushing for more results in practical cooperation in various areas, so as to better benefit the two peoples, Han said. Noting that China is pushing forward reform and opening up to a higher level, Han said it welcomes Swiss companies to grasp the opportunities and invest in China. Han said there is a bright future for Chinese and Swiss companies to deepen their cooperation within the framework of the Belt and Road Initiative (BRI), adding that China supports enterprises of both sides to undertake third-market cooperation and build more model cooperation projects. The Swiss side said that in terms of Western countries' relations with China, bilateral relations between Switzerland and China have always been in the lead, with good prospects for economic and trade cooperation, adding that Switzerland is a natural partner with China regarding the BRI cooperation, and is ready to actively promote third-market cooperation between the two countries' firms. The Swiss side said that the country admires China's achievements in its reform and opening up, and stands ready to take the anniversary of bilateral diplomatic ties as an opportunity to take bilateral relations to higher levels. It said that Switzerland welcomes Chinese investment and will provide a fair environment, adding that Switzerland highly appreciates China's active steps in further opening up, and will encourage more Swiss companies to do businesses in China for mutual benefits. ^ top ^

 

Foreign Policy

Meng Wanzhou's 'lies' to HSBC are a clear case of fraud, Canadian lawyer tells extradition hearing (SCMP)
2020-01-23
A Canadian government lawyer has firmly rejected claims by Huawei Technologies executive Meng Wanzhou that she should be freed at her extradition hearing in Vancouver, saying that her alleged lies to HSBC about the tech firm's business in Iran amount to a clear case of fraud. "Ours is not a complex theory … lying to a bank in order to get economic services is fraud," said Robert Frater, adding that Meng's case thus passed the test of "double criminality" required to send her to the US to face trial. Frater, whose team of government lawyers is representing US interests in the case, told Justice Heather Holmes: "Your job is not as my friends [on Meng's side] suggested, to stand up for Canadian sovereignty … those concerns are for the executive." Meng, whose extradition case formally began in the British Columbia Supreme Court on Monday, more than 13 months after her arrest at Vancouver's international airport, is accused of defrauding HSBC by lying in a meeting with a bank official about Huawei's business in Iran. That is said to have put HSBC's economic interests at risk, by putting the bank in breach of US sanctions on Iran, and in peril of US fines, prosecution and reputational damage. But Canada does not have banking sanctions on Iran, and Meng's lawyers argued on Monday and Tuesday that her case therefore failed the test of "double criminality" – the requirement that an extraditable person be accused of something that would constitute a crime in Canada as well as the requesting state. Frater's team has countered that "the essence of [Meng's] offending conduct is fraud, not violating sanctions". Frater told Holmes that she should not get "knee deep" in the foreign indictment, and instead focus on Canadian law to make sure the test of double criminality was met. Meng's arrest on December 1, 2018, was a seismic event in China's relationships with both the US and Canada. It infuriated Beijing, which said that Meng, Huawei's chief financial officer and the daughter of its founder Ren Zhengfei, was the victim of a political prosecution. Her case comes amid the continuing US-China trade and tech wars. The US has instigated an intense debate over whether to allow the Chinese telecommunications giant to take part in high-speed 5G internet networks now being developed around the world. Moreover, in the days following Meng's detention, China arrested Canadians Michael Spavor and Michael Kovrig and accused them of spying. But the move was widely seen in the West as retaliation for Meng's treatment. Meng is living in Vancouver in a C$13.6 million (US$10.4 million) mansion that she owns. She is under the guard of a private security team, and must wear a GPS tracker on her ankle, abide by a curfew and stay away from the airport. Meng's meeting with the HSBC banker that is at the heart of the current arguments took place in a Hong Kong teahouse in August 2013. Meng is alleged to have used a PowerPoint presentation to mislead the banker about Huawei's relationship with the tech firm's affiliate in Iran, a company called Skycom. Frater said that Meng had committed "deliberate misrepresentation on any understanding of the facts" at the teahouse meeting. He said that there was no need for HSBC to suffer actual loss to support a charge of fraud, and that the mere risk of economic prejudice would suffice. Frater said HSBC stood at reputational risk as a result of Meng's alleged lies, were it to become known that it was "the banker of choice for an Iranian business". He highlighted the fact that in 2013 HSBC was already party to a deferred prosecution agreement that resulted in a massive US$1.9 billion settlement for breaching US sanctions in Iran, Libya and elsewhere. The risk of prejudice to HSBC's interests as a result of Meng's misrepresentations, Frater said, "ends in committal. End of story. I could sit down now." Asked by Holmes if he was oversimplifying things, Frater added: "But I'm not going to stop there, don't worry about it … I'm just getting wound up," drawing laughter from the gallery. Frater called other double-criminality arguments by Meng's team – that to support a charge of fraud in Canada all elements of the fraud must have occurred in Canada – "absurd". Were that the case, "Canada would be the destination of choice for telemarketing fraudsters and internet hucksters", Frater said. Frater took a little over two hours for his rebuttal, and the hearing was adjourned until Thursday morning for the response by Meng's lawyers. The double-criminality phase of the hearing could possibly continue into Friday. More court dates are pencilled in until November, but the case could stretch beyond that, with some extradition proceedings lasting years. Later hearings are scheduled to consider whether Meng was subjected to an abuse of due process when she was arrested and questioned at the Vancouver airport. The later hearings will also address accusations the case is politically motivated, with Meng's lawyers citing comments US President Donald Trump made soon after her detention that he might intervene in her case if it was to the economic advantage of the US. ^ top ^

China's US trade war deal is 'is good for the world' and'will not impact' imports from other countries (SCMP)
2020-01-22
Vice-Premier Han Zheng told the World Economic Forum that China's trade deal with the United States will not hurt rival exporting nations as complaints mount from governments that were left out of the agreement. Han said that China's commitment to buy more from the US are in line with its World Trade Organisation (WTO) obligations and will not squeeze out other imports. He also pledged to lower barriers for foreign investors as he set out the case for China's engagement with the global economy. "The phase one trade deal is good for the US, China and the world. China's increasing purchases of US goods are in accordance with WTO guidelines and will not impact its imports from other countries," Han told an audience in Davos, Switzerland on Tuesday. "China will open its door wider. Though facing some protectionism from some countries, the determination to open up will not waver." The speech came less than a week after another of China's Vice-Premiers, Liu He, signed a phase one deal intended to de-escalate a trade war with US President Donald Trump. The accord saw China commit to crack down on the theft of American technology and corporate secrets by its companies and state entities, while outlining a US$200 billion spending spree to try to close its trade imbalance with the US Han made the comments just as Trump gave his own speech in Davos, in which the US president claimed credit for overseeing an economy enjoying its longest expansion yet, with an unemployment rate that fell to a five-decade low after tax cuts, deregulation and improved trade deals. Trump also spoke of his close relationship with Chinese President Xi Jinping, who again did not travel to Davos having sent Liu to sign the trade deal last week. "He's for China and I'm for the US, but other than that, we love each other," he said. Under the agreement, China will boost its purchases of US manufactured goods, agricultural products, energy and services over the next two years, although critics say such predetermined demand can have adverse consequences elsewhere. "The real problem with managed trade is that it may divert, rather than expand, international commerce," Chad Bown, a senior fellow and trade expert at the Peterson Institute for International Economics in Washington, said in a report released on Tuesday. "For example, China could purchase more American soybeans by cutting back on imports of oilseeds from Brazil." Germany's Kiel Institute for the World Economy said China's pledge to boost American imports could end up costing the European Union around US $11 billion next year. "If trade costs and hence relative prices do not change, Chinese imports from the US must come at the expense of third countries," the institute said in a study published this week. Last week, European Union trade commissioner Phil Hogan said his team will scrutinise whether China's pledge is allowed under the WTO. "We haven't analysed the document in detail, but we will and if there's a WTO-compliance issue of course we will take the case," Hogan told a conference on Thursday in Washington. Separately, Australia is pushing China for the same dairy concessions that the US received, according to The Sydney Morning Herald. As part of phase one of the deal, the US secured regulatory breaks on dairy products shipped to China, barriers that have hampered Australian exporters, the newspaper reported last week. ^ top ^

US-China trade deal won't affect European firms in China, Xi Jinping tells Angela Merkel, Emmanuel Macron (SCMP)
2020-01-22
Chinese President Xi Jinping has sought to reassure European companies that their interests in the world's second-largest economy will not suffer as a result of Beijing's trade deal with the United States, while also calling for fair treatment of Chinese firms operating in Europe. In a phone call with German Chancellor Angela Merkel on Wednesday, Xi asked for the "creation of a level playing field" for companies operating in Germany – in an apparent reference to the debate in Berlin as to whether Chinese tech giant Huawei Technologies should be allowed to be involved in building Germany's 5G network. Trade has been a thorny issue between the European Union and China since Beijing and Washington signed their "phase one" deal last week. Some European companies fear they will miss out as a result of China promising to increase its purchases of American products as part of the agreement. "The economic and trade cooperation between China and the relevant country will not affect the interests of other trade partners in Europe and Germany," China's state broadcaster CCTV quoted Xi as telling Merkel, though he made no mention of the US. Xinhua, meanwhile, quoted Merkel as saying she was "pleased" with the US-China deal, while also praising Beijing for opening its markets to German businesses. The chancellor has so far been reluctant to impose a ban on Huawei, possibly out of concerns that doing so would hurt German companies' interests in China. After some German politicians queried Merkel's reluctance to ban Huawei from the country's next-generation 5G mobile network, China's ambassador to Germany, Wu Ken, said last month that any such restrictions would have "consequences". Merkel sought to reassure Xi of her policy of trade openness, saying Germany "would treat companies from all countries, including China, fairly", according to the Xinhua report. Xi said China and Germany "shoulder important responsibilities" as the world becomes more fluid. "China has always placed emphasis on our relationship with Germany," he said. "It is hoped that China and Germany can become mutually dependent collaborators that go beyond ideologies." Meanwhile, French President Emmanuel Macron made his country's position clear in a separate telephone call with Xi. "I would like to emphasise that on the question on 5G, France will not adopt any discriminatory policies against any country or company," Xinhua quoted him as saying. The comments from Merkel and Macron come after the EU in March dubbed China a "systemic rival" but said there was still room for cooperation. A German source said Merkel also made reference to the issues of Hong Kong and Xinjiang in her call with Xi, though those subjects were not mentioned in the Xinhua report. Xi told the two European leaders that China was committed to reaching what he called a "high quality" investment agreement with the EU, state media said, in reference to a deal expected to be concluded this year. Xi also told Macron that China and France should seek further cooperation in the areas of civilian-use nuclear power, manufacturing and aerospace technology. Expressing an interest to revisit China, Macron said he also saw room for collaboration on issues like climate change, biodiversity and the reform of the World Trade Organisation, Xinhua said. "I hope the two sides can continue to push for cooperation on trade, investment and environmental protection," he said. Both Macron and Merkel appealed to Xi to release information about the outbreak of the coronavirus in Wuhan. Xi replied by saying China would continue to share information with the World Health Organisation and work with the international community to curb the control the virus, which has already infected more than 480 people and caused nine deaths. ^ top ^

Chinese vice premier calls for joint efforts to bolster economic globalization (Xinhua)
2020-01-22
Chinese Vice Premier Han Zheng here on Tuesday called on the international community to build an inclusive and open world economy and uphold multilateralism in support of economic globalization. Han, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, delivered a speech titled "Work Together for an Open World Economy and Sustainable Global Development" at the 50th annual meeting of the World Economic Forum (WEF). At the 2017 WEF annual meeting in Davos, Chinese President Xi Jinping delivered a historic speech and expressed firm support for economic globalization, a message that resonated far and wide, Han said. Han noted that economic globalization is "a trend of history, an essential condition for productivity growth, and a natural result of the advance in science and technology," adding that it is also "a strong driving force behind economic growth across the globe." To resolve the difficulties and problems in economic globalization, the fundamental solution lies in building an inclusive and open world economy together, and the key lies in upholding multilateralism, Han said. "Unilateral and protectionist practices, which run counter to the global trend, will lead to nowhere... and end up hurting everyone's interests," the vice premier said. Han called on all countries to demonstrate greater courage, stay committed to equal-footed consultation and tide over difficulties together. "We should make economic globalization more open, inclusive, balanced and beneficial for all" so that "people of all countries will be able to share in the benefits of economic globalization and global growth," he said. He said the global community should "keep to the goal of safeguarding peace, promoting development, upholding equity and justice, and pursuing mutual benefit and win-win outcomes," calling for joint efforts "to tackle global challenges such as poverty reduction, climate change and environmental protection." "We should abide by the international law and widely recognized norms of international relations... and advance the improvement and transformation of the global governance system," he said. China has embraced economic globalization, pursued development with its door open, and succeeded in transforming a closed and semi-closed economy into a fully open economy, Han noted, adding that "openness has become a trademark of today's China." China has developed itself through opening-up and participation in economic globalization, and the world has also benefited from this process, he said. The vice premier pledged that his country will open its door still wider to the world. "Despite the protectionist and unilateral moves by some countries, China will not stop pursuing higher-quality opening-up, and will not follow their footsteps to move in the opposite direction of globalization," he said. Han stressed that China will further widen market access for foreign investors and cut negative list for foreign investment, import more goods and services to promote balanced trade, and further improve China's business environment to let all types of businesses registered in China be treated equally. China will also foster new drivers of opening-up, allowing free trade zones to initiate more reforms and speeding up the building of the Hainan Free Trade Port, he said, adding that China will further deepen multilateral and bilateral cooperation and work with other countries to build an open world economy. Standing at a new historical starting point, China will, as always, actively shoulder its due international responsibilities and obligations, Han noted. He pledged that China "will maintain stability and pursue development while contributing to peace and prosperity in the world," and "work with people of all countries to build an open, inclusive, clean and beautiful world that enjoys lasting peace, universal security and common prosperity" so as to make greater contribution to building a community with a shared future for mankind. During his stay in Davos, Han also attended a luncheon hosted by WEF Executive Chairman Klaus Schwab, and exchanged views with business leaders including Apple CEO Tim Cook and Siemens AG President Joe Kaeser. The industry and business leaders said they are full of expectations for China's deepening reform and further opening-up, and are willing to expand trade and technological cooperation with China for mutual benefit. ^ top ^

China's secrecy on nuclear arms a 'threat to stability', US says, urging Beijing to join talks with Russia (SCMP)
2020-01-22
The United States urged China on Tuesday to join trilateral nuclear arms talks with Russia, calling Beijing's secrecy around growing stockpiles a "serious threat to strategic stability". US President Donald Trump said last year he had discussed a new accord on limiting nuclear arms with Russian President Vladimir Putin and hoped to extend that to China in what would be a major deal between the globe's top three atomic powers. But China has so far refused to take part. "We think, given the fact that China's nuclear stockpile is estimated to double over the next 10 years, now is the time to have that trilateral discussion," Robert Wood, US disarmament ambassador, told reporters on the opening day of the UN-backed Conference on Disarmament in Geneva. He said that Washington had discussed the potential trilateral talks in a security meeting with Russia last week and had reached an "understanding" about pursuing them. "We cannot afford to wait," he added. Asked how to go about pressuring Beijing to join, Wood said that he hoped Moscow, and others, would help. "Hopefully over time and through the influence of others besides the United States, they [China] will come to the table. We think it's imperative for global security that the Chinese do that." Russian Foreign Minister Sergei Lavrov said last week that Russia would take part in potential trilateral talks but that he "won't force China to change" its current position. China has previously said its weapons were the "lowest level" of its national security needs and not comparable to those of Russia and the United States. The United Nations is seeking the total elimination of nuclear arms but talks have been deadlocked for more than 20 years. Other talks between the five declared nuclear powers that have ratified the 1970 Non-Proliferation Treaty (NPT) – China, United States, Russia, France and Britain – are continuing and a meeting is planned in London next month. However, Wood said this was not the right framework for nuclear arms talks with Beijing. In his speech, China's disarmament Ambassador Li Song did not refer to its own nuclear stockpiles but called for cooperation among nuclear powers and made a thinly veiled swipe at the Trump administration. Li called for a commitment to multilateralism, "with no exceptions, least of all the big power which shoulders a special responsibility for international peace and security and who is not expected to play the role of a 'spoiler' to our collective efforts and to withdraw from treaties". ^ top ^

Spotlight: Xi's Myanmar visit promotes building of community with shared future for humanity (Xinhua)
2020-01-19
Chinese President Xi Jinping's state visit to Myanmar, his first overseas trip this year, is another important practice for China to promote the building of a community with shared future for humanity in the region, Chinese State Councilor and Foreign Minister Wang Yi said on Saturday. The Chinese president arrived in Nay Pyi Taw earlier on Friday for a state visit to Myanmar. It is the first visit to the Asian neighbor by a Chinese president after an interval of 19 years. During the visit, Xi attended 12 events and witnessed the signing of 29 cooperation documents in various fields, Wang said, adding that the two sides have also issued a joint statement. The Myanmar side has for long highly expected Xi's state visit, Wang said, noting that the Chinese president was met with the highest courtesy and a grand reception by the Myanmar side. Wang said that during Xi's visit, China and Myanmar have agreed to work together to build a community with shared future, opening a new era of bilateral ties. This decision conforms to the trend of the times, meets expectations of the two peoples and injects new impetus and vitality into bilateral cooperation, Wang said. All sectors of the Myanmar society have responded positively to the decision, with the Myanmar leadership expressing support to Xi's proposal of building a community with shared future for humanity, Wang said. During the meetings, Myanmar State Counsellor Aung San Suu Kyi said that China has always been a good friend of Myanmar, and fate has bound the two sides closely, according to Wang. To celebrate the 70th anniversary of bilateral diplomatic ties, Wang said the two countries agree to hold the China-Myanmar Year of Culture and Tourism, and to carry out over 70 activities, covering education, tourism, culture and other fields. During the visit, President Xi and Myanmar leaders held in-depth discussions on promoting high-quality joint construction of the Belt and Road and reached new important consensus, Wang said. The two sides agreed to promote the construction of the Kyaukphyu Special Economic Zone, the New Yangon City, the China-Myanmar Border Economic Cooperation Zone, as well as roads, railways and power and energy infrastructures. It marks the transition of the China-Myanmar Economic Corridor (CMEC) from conceptual planning to substantive construction, Wang said. China is willing to work with Myanmar to steadily advance the construction of key cooperation projects in the CMEC within the framework of jointly building the Belt and Road, bringing local people more benefits and giving them stronger sense of gain and happiness, Wang said. For the Myanmar side, its leaders said that the construction of the economic corridor under the framework of the Belt and Road Initiative is of great significance to Myanmar's national development, Wang said. Myanmar Commander-in-Chief of Defense Services Min Aung Hlaing also pledged that the Myanmar military will firmly support and promote the joint construction of the Belt and Road, Wang added. Noting that the world is undergoing profound changes unseen in a century, Wang said injustice and inequality remain prominent in international relations, and protectionism, unilateralism as well as bullying actions are rising against the trend. Developing countries, including China and Myanmar, are facing new challenges in safeguarding their sovereignty, security and development interests, he said. When meeting with Myanmar leaders, Xi stressed that all countries have the right to choose a development path suited to their national conditions. The development path chosen by the Chinese people is successful, and the Chinese will continue to follow the path unswervingly, Xi said, adding that China is willing to share its experience in poverty alleviation with Myanmar. Myanmar felt sincere happiness for China's success, Wang quoted Myanmar leaders as saying, adding that the Myanmar leaders expressed their hopes that China will share more experience in state governance with Myanmar and other developing countries. China's successful experience will provide practical reference for Myanmar's economic development, improvement of people's well-being and poverty alleviation, the Myanmar leaders said. Myanmar staunchly abides by the one-China principle, firmly supports China in safeguarding its core interests, and stands unshakably on the side of Chinese friends, they also said. Xi, meanwhile, stressed that China is committed to peaceful development, will never seek hegemony or interfere in other countries' internal affairs, and will continue to speak out for justice for developing countries on the international stage. China supports Myanmar in moving forward along the development path it has chosen and in safeguarding its legitimate rights and interests and national dignity on the international stage, Xi said. Leaders of the two countries also pledged to continue to uphold the Five Principles of Peaceful Coexistence, jointly uphold the purposes and principles of the UN Charter, work together to uphold the common interests of developing countries and uphold international fairness and justice, Wang said. ^ top ^

 

Domestic Policy

China's Wuhan suspends public transportation, outward flights, trains (Xinhua)
2020-01-23
Central China's megacity of Wuhan battling with a pneumonia outbreak has announced to suspend public transportation, and close the airport and railway stations to outgoing passengers, while asking citizens not to leave the city without specific reasons. City buses, subways, ferries and long-distance coaches, as well as flights and trains for outgoing passengers will be suspended starting from 10 a.m. Thursday until further notice, said a notice issued in the wee hours of Thursday by Wuhan's headquarters for the control and treatment of the pneumonia caused by the novel coronavirus. The measures will be taken in a bid to "effectively cut off the virus spread, resolutely curb the outbreak and guarantee the people's health and safety," the notice said. A total of 444 cases of new coronavirus-related pneumonia and 17 deaths had been reported in Hubei Province as of 8 p.m. Wednesday, with the majority in Wuhan, the provincial capital. ^ top ^

Wuhan mayor under pressure to resign over response to coronavirus outbreak (SCMP)
2020-01-23
The mayor of Wuhan, the central Chinese city where a new coronavirus first broke out, is under growing pressure over the government's response to the outbreak after he admitted its disease prevention efforts fell short. Zhou Xianwang, the 57-year-old mayor of the Hubei provincial capital, is weathering what will likely be the toughest crisis of his career, with a flood of calls for his resignation after he told state broadcaster CCTV that the city's "warnings were not sufficient". During the interview on Tuesday, he was grilled on whether the city had reacted "too slowly" to the spread of the virus, if timely information had been shared, about hospital staff getting infected, on allowing a mass gathering to go ahead in the midst of the outbreak, and the delayed cancellation of public events for the Lunar New Year. "From the perspective of continued understanding of the situation, it is only at this time that everyone realises it is so dangerous," said Zhou, who has been mayor since September 2018. "If we knew at first from the virus spread that it would be so serious, finding effective control and prevention methods of course would be good, but the problem is usually we cannot realise the severity from the outset." Video clips from the interview posted on Chinese social media have drawn thousands of angry comments, with many accusing the mayor of "neglecting his duty" and calling for him to "step down". Public dissent is rare in China, particularly as Beijing has clamped down on civil society in recent years to ensure the media, and social media users, carefully toe the official line. But the online backlash to Zhou's remarks was swift. One blogger, with 6.8 million followers, wrote that the mayor had "better voluntarily resign, this way he can actually have some dignity". Another commenter wrote: "You completely ignored early prevention and control efforts." One other added: "It feels very likely this is the last time you will accept an interview with this status." More than 541 cases of the coronavirus have been confirmed across mainland China, after the pneumonia-like disease first spread from Wuhan in late December, with 17 deaths. There have also been confirmed cases in Japan, Macau, South Korea, Hong Kong, Taiwan and the United States. The Wuhan mayor, a member of the ethnic Tujia minority, was slammed specifically for allowing a large-scale Lunar New Year gathering – where local media said more than 40,000 families dined on nearly 14,000 dishes – to go ahead on Sunday in one of the city's urban districts, when 62 cases of the viral pneumonia had already been reported. "This year, they continued to hold the activity because our judgment earlier on the disease spread was that there was limited transmission between humans, so our warnings on this were not sufficient," Zhou said. "Later, it was confirmed there was human-to-human transmission and this trend had the possibility of becoming more intense, so we quickly employed various measures to request that these types of events not be held unless absolutely necessary." Wuhan first reported 27 cases of the new disease on December 31, linked to the Huanan Seafood Wholesale Market. The count rose in early January to 44 cases, then 59. After a period with no new confirmed cases, the city's health authorities reported on Sunday that the count had reached 62, a number that soared the next day to 198. Zhou said Wuhan had begun movement controls on January 14, with restrictions for both entering and exiting the city starting from Monday to limit the spread of the disease. He also acknowledged a cross-infection incident where a patient undergoing brain surgery infected one doctor and 13 nurses with the coronavirus. "This lesson was very profound and showed that prevention efforts are needed so there are no holes," he said. "This is also related to how our understanding of the harm and the spread of the virus did not reach a high level." Zhou first made national headlines 16 years ago – not for a public health crisis but for impressing the Chinese president at the time, Hu Jintao, at a 2004 legislative meeting. Zhou, then-head of the Enshi Tujia and Miao autonomous prefecture in Hubei province, produced a receipt from Hu's trip two decades prior to the Enshi prefecture, showing Hu had paid for his own meal in the countryside, according to Communist Party mouthpiece People's Daily. Zhou later became deputy governor of the provincial government, then deputy mayor of Wuhan before he took the job of mayor. ^ top ^

Chinese people to celebrate festival despite disease impact (Global Times)
2020-01-23
The specter of the Wuhan novel coronavirus hovers over China with at least 549 confirmed cases across the country, and most provinces have reportedly had suspected cases, but due to the approach of the most important festival in Chinese tradition - Chinese New Year - many people across the nation maintained optimistic and will go ahead to celebrate the festival. The viral outbreak is likely to put pressure on the economy as many provinces have issued new policies and regulations to limit unnecessary group activities and market events to prevent or minimize the possibility of further infection. But Chinese experts believe that the impact would be limited as the country has the experience in dealing with deadly virus like Severe Acute Respiratory Syndrome (SARS) 17 years ago, and today, with more advanced technology, the impact would be less, and the national ability to contain crisis is more mature. Despite the news of rising cases of infection, many people are calm and said they won't let the virus ruin their family reunions during the Chinese New Year national holidays. Over 90 percent of air travelers in Southwest China's Chongqing Municipality, approximately 800 kilometers from Wuhan, are seen wearing masks, as well as people in other densely-populated areas of this city. Mask vendors can also be spotted in commercial areas, with the price of the N95 mask, which is believed to be the most effective protection gear against the coronavirus, soaring to 25 yuan for one piece from the usual 10 yuan. Fear of the virus was mostly shared by young people, who are concerned because of the proximity of Chongqing to Wuhan. Senior citizens, on the other hand, believe there's no need to panic, and have faith in the government's ability to control the virus. "We beat SARS 17 years ago. This time, with more advanced technology and a mature system, we can also beat the new coronavirus," said Liu, a 50-year-old restaurant owner in Chongqing. At the Yangzhou Taizhou International Airport in Jiangsu, the only province in East China that has not reported any confirmed coronavirus case as of Wednesday night, the Global Times reporter saw few people wearing masks. Some were talking about the Wuhan coronavirus by phone with their families and asking each other to take care. The Global Times reporter also saw a different reaction in cities and towns toward the Wuhan pneumonia epidemic in the province. A woman, 27, surnamed Zhao said that masks have been sold out in Nanjing, capital of Jiangsu, but another woman surnamed Zhou, 54, told the Global Times she is not worried as no case has been reported in the town she lives. "I am not worried, and am only trying to avoid crowded places," Zhou said. In Hong Kong, with at least 117 suspected cases and one confirmed case as of press time, one of the impacts of the new virus is that protests and gatherings could be reduced as the protesters try to avoid crowded areas, some Hong Kong residents said. Andy Chan, 54, a social worker in Kowloon district who delivered free medical masks to people in his community on Wednesday, said "of course many people are nervous, but at least it was good for the society to restore public order, as the violent protests and illegal gatherings will surely by reduced." "We can at least enjoy a peaceful Chinese New Year without troublemakers in black creating a mess around the city," Chan noted. The outbreak will likely exert some pressure on businesses in certain areas, such as tourism, transportation, catering, lodging and retail, as many are expected to cancel trips, according to some market research reports on Wednesday. "Compared to other crises, epidemics could have the broadest and most serious impact on the tourism sector," Guotai Junan Securities said in a research note, noting that the sub-index of tourism-related shares on the A-share market have dropped over 6 percent in the past two days. Many across the country are cancelling trips ahead of the peak season during the Chinese New Year. As part of efforts to contain the outbreak, airlines, hotels and travel agencies are offering full refunds. Some observers have called the outbreak a "black swan" event that could further drag down growth. Others compared the new virus to the outbreak of the SARS in 2003, which had a huge impact on the Chinese economy then. A report by the International Air Transport Association in 2006 estimated that the 2003 SARS outbreak had cost the Chinese economy 0.1 percent of its GDP. "Is the SARS market sentiment returning?" Yang Lingxiu, a chief overseas strategist at CITIC Securities, wrote in a note on Wednesday, listing the worsening outbreak of the new virus in Wuhan as a major risk for global markets. But some argue that the new virus will unlikely have the same negative impact on the economy as SARS did in 2003, given the scope of the epidemic and China's ability to effectively contain the virus from further spreading. "I don't believe in this fallacy," Mei Xinyu, a research fellow at the Ministry of Commerce's Chinese Academy of International Trade and Economic Cooperation, said on Wednesday, noting that while certain preventive measures are necessary, life will move on and businesses will continue. "The bottom line is that I believe in China's ability to contain the situation and mobilize [resources] to do so," said Mei, who is a Wuhan native. ^ top ^

Chinese leaders extend Spring Festival greetings to former leaders (Xinhua)
2020-01-22
President Xi Jinping and other Chinese leaders have visited former senior leaders to extend festive greetings ahead of the Spring Festival, or the Chinese Lunar New Year. Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, as well as other leaders, wished the former leaders a happy Spring Festival, good health and long lives. The former leaders, including Jiang Zemin and Hu Jintao, received personal visits either from the current leaders or from their representatives. The former leaders thanked them for visiting and spoke highly of the historic achievements made by the whole Party, military and Chinese people of all ethnic groups under the leadership of the CPC Central Committee with Comrade Xi Jinping at the core. They also expressed wholehearted support to the core status of Xi Jinping in the CPC Central Committee and the whole Party. The former leaders expressed hope that the entire Party, military and Chinese people of all ethnic groups would rally even closer around the CPC Central Committee with Comrade Xi Jinping at the core and follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. They also called for confidence, unity in securing a decisive victory in building a moderately prosperous society in all respects and the fight against poverty, and unremitting efforts to deliver the two centenary goals and the Chinese Dream of national rejuvenation. ^ top ^

China's national legislature, political advisory body welcome press to cover annual sessions (Xinhua)
2020-01-22
China's national legislature and political advisory body invite journalists at home and abroad to report their annual sessions to be held in March, an official statement said Wednesday. The 13th National People's Congress (NPC), China's national legislature, will start its third annual session on March 5, and the 13th National Committee of the Chinese People's Political Consultative Conference (CPPCC), the country's national political advisory body, will begin its third annual session on March 3. A press center for the two sessions will open on Feb. 27, said the statement jointly issued by the general offices of the NPC Standing Committee and the CPPCC National Committee. Chinese reporters and foreign journalists in China should submit applications for passes to the press center, while foreign reporters temporarily in China for the two sessions should apply to Chinese embassies or visa organizations authorized by the Chinese Ministry of Foreign Affairs. Reporters from Hong Kong and Macao should apply at the central government's liaison offices in the two special administrative regions, and reporters from Taiwan should apply to the Taiwan Affairs Office of the State Council. The deadline for applications is Feb. 15, and more information is available on the NPC and CPPCC websites. ^ top ^

Chinese military enthusiasts expect new warplanes in 2020 (Global Times)
2020-01-22
Chinese military enthusiasts online are eagerly expecting new, homemade warplanes to debut in 2020, naming the next-generation aircraft carrier-based fighter jet and the carrier-based early warning aircraft as their top wishes. They also hope to see domestically developed aero engines finally equipped on J-20 stealth fighter jets. The internet users' appetite was whetted by a statement from the state-owned Aviation Industry Corporation of China (AVIC) last week, in which the country's main warplane developer announced the company would develop nine types of aircraft, conduct maiden flights for four types of aircraft, and receive a production permit for one type of aircraft in 2020. While the development plan may not be revealed to the public immediately, the maiden flights are more concrete, as the military channel of news portal Sina held a vote on its social media platform Weibo, asking military enthusiasts online which type of aircraft they would like to see. As of Wednesday, 42 percent of more than 4,000 votes went to the next-generation aircraft carrier-based fighter jet, 28 percent the carrier-based early warning aircraft and 23 percent the twin-seat variant J-20 fighter jet. While the new aircraft AVIC mentioned could include both military and civilian aircraft, China's military aviation equipment will definitely continue to see new progress in 2020, a military expert who asked not to be named told the Global Times on Wednesday. China needs to develop a stealth-capable carrier-based fighter jet to form a complete set with the country's future aircraft carrier, air defense expert Fu Qianshao told the Global Times in a previous interview, noting details on the aircraft remain rumors. A replica of China's carrier-based early warning aircraft was spotted years ago. This type of aircraft could amplify aircraft carrier's combat capability by acting as a command center in the sky, gathering information and coordinating vessels into a stronger strike force, experts said. Photographers posted photos of a J-20, still single seat but equipped with homemade engines on Sina Weibo in late 2019, as military enthusiasts said they also wish to see this evolved version of the J-20 debut at the 2020 Airshow China, scheduled for November in Zhuhai, South China's Guangdong Province. In a Friday Weibo post, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) indicated AVIC is developing an "X-20," which internet users identified as the H-20 bomber. Replying to comments under the post, SASAC said the X-20 was "coming soon," but refused to confirm the H-20 speculation. Analysts said the H-20 is unlikely to debut in 2020 and will take more time to develop. ^ top ^

Rules for plastic products aim to curb urban pollution (China Daily)
2020-01-20
China unveiled a wide-ranging guideline to phase out nondegradable plastic products in major consuming sectors on Sunday, vowing to effectively curb plastic pollution in major cities in five years. In addition to setting timelines to ban or restrict single-use, nondegradable plastic products in such sectors, the document also pledges to ramp up recycling and introduce preferential policies to promote green packaging and express delivery. The country is expected to significantly reduce the amount of plastic waste going to landfills and bring plastic pollution under effective control in major cities by 2025, according to the guideline. The production and sale of disposable foam plastic tableware and plastic cotton swabs will be banned by the end of this year, according to the document, jointly issued by the National Development and Reform Commission and the Ministry of Ecology and Environment. The production of household chemicals containing plastic microbeads will be prohibited by the end of this year, and the sale of such products will be barred two years later, it said. Bans on the sale of other nondegradable plastic products will be rolled out in phases in different levels of cities and major plastic-consuming sectors. The use of nondegradable plastic bags, for example, is expected to vanish in some major consuming sectors, including shopping malls, supermarkets and restaurant takeout services, first in metropolises by the end of this year and then in all major Chinese cities and all urban areas in coastal regions by the end of 2022. However, no immediate ban will be set for the use of such bags in city markets. Restrictions will be introduced and extended to all these urban areas by 2022 before a complete ban is enacted by the end of 2025, according to the guideline. Weng Yunxuan, secretary-general of the China Plastic Processing Industry Association's degradable plastic committee, applauded the plan for its phased design. "The ban will not be imposed all of a sudden, but phase by phase. The current production capacity (for substitute products) in China will not fail to meet the market gap caused by the ban," said Weng, who is also a professor at Beijing Technology and Business University. Under the guideline, single-use, nondegradable plastic products will be gradually banned in the restaurant industry in urban areas and scenic spots across the country by the end of 2022, and then in express delivery sectors three years later. Weng said China is not starting from scratch in promoting degradable plastic products, and some regions and sectors have acquired experience that can be instructive for others. Jilin province has led the way in the country in promoting biodegradable plastic shopping bags, and some supermarkets and e-commerce platforms, such as JD.com, have been using the environmentally friendly bags for a while in some businesses. Late last year, China announced a national standard for biodegradable plastic shopping bags, and the country is technologically prepared for their production, Weng added. The guideline also states that e-commerce and on-demand service platforms should strengthen the management of businesses on their platforms. They should draft plans to reduce the use of and find substitutes for disposable plastic products and make public how well the plan is implemented. E-commerce and on-demand service platforms will also be encouraged to cooperate with sanitation departments and recycling companies to set up facilities to collect packaging of delivery parcels and meal boxes in key areas. Yang Bicong, secretary-general of the social responsibility committee of Meituan-Dianping, the country's largest on-demand service platform, said the guideline may only pose some short-term challenges that will be addressed soon. It may be challenging for restaurant companies using Meituan-Dianping's platform to get substitutes in the short term. This may result in increased packaging costs and affect consumers' experience, she said. "In the long run, with breakthroughs in technological innovation and the expansion of the market (for degradable plastic substitutes), the cost will be reduced and the performance (of the substitutes) will be improved. All the problems will be addressed," she said. Meng Wei, a spokeswoman for the National Development and Reform Commission, said the commission will proactively cooperate with other government bodies to make concerted efforts in promoting work on plastic pollution control. The commission "will upgrade and make public the list of restricted plastic products and elaborate the scope for restrictions and bans on certain types and the implementation standards in a timely manner" to ensure tasks included in the guideline will be fulfilled. ^ top ^

Xi Focus: Who does Xi visit ahead of Chinese New Year (Xinhua)
2020-01-19
Chinese President Xi Jinping began his pre-Chinese New Year domestic inspection tour Sunday, visiting southwest China's Yunnan Province. He headed for a village of the Wa ethnic group to learn about poverty alleviation efforts and extend his festival greetings to the villagers. The Chinese New Year, which falls on Jan. 25 this year, is the most important festival for Chinese people, who beat all odds to return home to be with their families and friends. Before previous Chinese New Year festivals, Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, would always visit the homes of ordinary people. Many of the families Xi visited were the disadvantaged and poor who live in tough environments and in remote areas. It is these people Xi cares deeply about, with the battle against poverty being his top priority. During the visits, he would sit down with them, listen to their concerns and join them for festival preparations ranging from making sticky rice cakes to frying dough and pasting red paper cuttings. In 2019, he walked into traditional courtyard homes in Beijing. In 2018, he trekked mountains to visit ethnic minority villages in Sichuan Province. In 2017, he went to the snowy countryside in Hebei Province. In 2016, he traveled to the "cradle of the Chinese revolution" in Jiangxi Province. In 2015, he returned to the village of Liangjiahe in Shaanxi Province, where he spent seven years in his youth living and working alongside peasants. In 2014, he braved the ice and snow to visit families living on pastures and forest farms in Inner Mongolia Autonomous Region. In 2013, he visited poor villages in remote and barren mountains of Gansu Province. Jihaoyeqiu's house was perched on a hill in mountainous Liangshan Yi Autonomous Prefecture, one of China's last pockets of deep poverty. In 2018, Xi visited Jihaoyeqiu's ramshackle home. He checked the family's living conditions and asked whether they had enough to eat and wear. In a later conversation, one of Jihaoyeqiu's fellow ethnic Yi villagers said she used to believe that she was haunted by ghosts as she often fell sick. Xi said in the past there were "ghosts" of poverty and backwardness. But as people gain more knowledge, attend to personal hygiene and live higher-quality lives, these "ghosts" are being banished. "Our socialism aims to create good lives for the people," Xi said. He is determined to eradicate absolute poverty which has haunted the nation for thousands of years. In 2013, he put forward "targeted poverty alleviation," and a goal was later set to eliminate extreme poverty by 2020. Over 10 million Chinese people shook off poverty every year since 2013. Jihaoyeqiu is one of them as his family moved into a 100-sq-meter four-bedroom home in a new relocation village out of the inhospitable area. Fate also changed for Xu Haicheng. In 2017, Xi sat down with him in his rural home in Zhangbei County and helped sort out Xu's family budget. Xu told Xi that his family of four earned over 43,000 yuan (6,269 U.S. dollars) a year growing potatoes, beets and oats but had to shell out more than 35,000 yuan for his wife's medical bills and his daughter's college expenses. After spending on daily necessities, Xu had little money left for the extras. Xi consoled him, pledging continuous support for families like Xu's and called on cadres to help by designing more effective targeted poverty relief measures and fostering more sustainable industries. Eliminating poverty, improving livelihoods and achieving common prosperity are the goals the Party has always been committed to, Xi said. Jinggangshan was a base for the Party in its early revolutionary days. But the "cradle of the Chinese revolution" was also facing a tough fight against poverty when Xi visited in 2016. Xi went to the home of Zuo Xiufa, a Red Army martyr descendant, learned that the family planned to earn extra income by making bamboo tubes and wished them good fortune. Out on the streets, he joined locals in making sticky rice cakes. In the home of Zhang Chengde, Zhang's wife commended Xi for governing the country well so that ordinary people have a sense of fulfillment. "The people are the masters of the country," Xi responded. "The job of all officials, myself included, is to serve the people." Observers said though Xi visited families of various backgrounds, he stuck to one task: leading the people to strive for better lives. In 2019, a campaign themed "staying true to our founding mission" was launched to ensure the Party remains true to its original aspiration and keeps its founding mission firmly in mind. "All the hard work, struggles and sacrifices the Party has made since its founding are for the happiness of the Chinese people and the rejuvenation of the Chinese nation," Xi said at a meeting to summarize the campaign earlier this month. ^ top ^

 

Hongkong

Hong Kong leader Carrie Lam reveals she is 'facing a lot of pressure' to rein in journalists as protests rock city (SCMP)
2020-01-23
Hong Kong's leader Carrie Lam Cheng Yuet-ngor has disclosed to an audience of global business and political chiefs that she has faced pressure to tighten control of the press and journalists in light of the ongoing social unrest. Lam also admitted her government's handling of the now-withdrawn extradition bill, which sparked the months-long protests, was a political failure but blamed it partly on "world-class propaganda" against her administration. But the chief executive, who was in Davos, Switzerland, for the annual World Economic Forum, said she would remain in her post to "practise what she has learned" from her administration's mistakes. In a conversation with CNN's Fareed Zakaria on Wednesday, Lam defended her government's handling of the unrest which has rocked the city for almost eight months, saying it was an "underestimate" to say it was a mere democracy movement. Lam said she had to uphold Hong Kong's core values, including the rule of law and press freedom. "For the government to provide a political response that the protesters or the rioters want to see … will not be a very prudent way of ensuring Hong Kong's future and public interest," she said, when asked if she would fulfil the protesters' demands, including an amnesty for those arrested. "I face a lot of pressure, not only from the protesters, but also from the anti-protest camp that I should control the journalists. I should make sure that they come to my office or police for identification documents before they can go down to the site to report," Lam said. "I would rather not. Because that will undermine freedom of media." Some media outlets, including public broadcaster RTHK, have been accused of biased reporting over the unrest, including allegations of siding with the protest movement against the government and police. Last weekend, 100 people gathered outside RTHK's headquarters to protest against what they viewed as anti-government bias in its programmes, calling the station an "accomplice" of the demonstrators. Lam admitted her bid to introduce the bill, which would have allowed the transfer of criminal suspects to mainland China and other jurisdictions with which Hong Kong has no extradition agreement, was "proven to be a political failure". Among concerns over the bill were that Hongkongers could be extradited to the mainland for political reasons and that people would not get a fair trial across the border. "[It failed] partly because of the nature of the matter and partly because of the very obsolete PR machinery of the [Hong Kong] government, especially facing a world-class propaganda that challenged us," she said. But Lam said she had no intention of resigning because of her failure. "I have certainly learned a lot. That is why when people asked me to resign, I said: Can I hang in to practise what I have learned so I can leave behind a better infrastructure for Hong Kong to deal with challenges in the future." Rumours have persisted for months that Beijing may replace Lam, whose approval rating has dropped to a record-low 14 per cent, according to a Hong Kong Public Opinion Research Institute poll earlier this month. Beijing has repeatedly expressed its support for her. ^ top ^

 

Taiwan

Taiwan's exports to mainland China fall 2.6 per cent in 2019 on weak electronics trade (SCMP)
2020-01-22
Taiwan's exports to mainland China fell 2.6 per cent last year, their first slump since 2016, on the back of a weak electronics sector and the impact of China's trade war with the United States, analysts said. Total two-way trade in 2019 grew by just 0.8 per cent year on year to US$244.35 billion, compared with 13.2 per cent growth 12 months earlier, according to figures from information provider Wind Financial. In 2018, Taiwan's exports to mainland China rose 13.9 per cent year on year. Iris Pang, a Greater China economist at ING Bank, said there were likely two main reasons for the poor performance. "First, the trade war between China and the US has led to slower trade growth worldwide, and second, electronics was in a downward cycle in 2019," she said. But the outlook for the electronics sector looked brighter this year, she said. "As the 5G coverage becomes broader, so demand for 5G smartphones and other devices will boost growth of the electronics trade, which is an important element of trade between mainland China and Taiwan." John Marrett, an Asia analyst with The Economist Intelligence Unit, said integrated circuits (chips) accounted for 35.4 per cent of Taiwan's goods trade with mainland China in 2019. "It is very difficult to tell what the [trade war] tariffs did to [Taiwan-mainland China] trade, but from what I have seen there has not been a big direct effect," he said. "But the background story that has been going on for a few years is that China has tried to be less reliant on Taiwanese goods in a few categories, though not electronics." Marrett said another possible explanation for the disappointing performance in the electronics sector was that Taiwan had not come up with any notable new developments over the past 12 months, a factor reflected in its global trade. That said, the outlook for trade between Taiwan and the mainland looked better this year as manufacturers on the self-ruled island were working on new developments, he said. "They are producing a new generation of very small integrated circuits, essentially microchips," Marrett said, adding that Taiwan had a monopoly in such products. Alicia Garcia Herrero, chief economist for the Asia-Pacific at the French bank NATIXIS, said Taiwan had been trying to reduce its dependence on trade with China's mainland. The mainland is Taiwan's largest trading partner – ahead of the US – accounting for 23.9 per cent of the island's total trade and providing 18.6 per cent of its total imports in 2018. "Partially, [it's] the result of Taiwan's own strategy to diversify away from [mainland] China," she said. "Such a strategy has proven quite successful with a surge of Taiwanese exports to the US and more trade with Southeast Asia." ^ top ^

 

Economy

Underlying trend of Chinese economy remains unchanged: Chinese vice premier (Xinhua)
2020-01-21
The underlying trend of the Chinese economy remains unchanged and it will maintain steady growth toward long-term sound development, Chinese Vice Premier Han Zheng said here Tuesday. "China's economy is in a transition from high-speed growth to high-quality development," Han, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, said in his remarks addressing the 50th annual meeting of the World Economic Forum (WEF). It is in a pivotal period of shifting the growth model, refining the economic structure and changing growth drivers, Han said. Despite slowing global economic growth, China's gross domestic product (GDP) grew by 6.1 percent in 2019, keeping its place among the fastest-growing major economies, he said. Meanwhile, significant progress has been made in China's three critical battles, namely, to forestall and defuse major risks, to eradicate poverty with targeted steps, and to prevent and treat pollution, said the vice premier. The Chinese economy has enormous resilience, potential and latitude, Han said, adding that through decades of reform and opening-up, China today enjoys a solid material and technical foundation, a huge market, tremendous potential in domestic consumption, and abundant human capital and talent resources. "We are therefore well-positioned to overcome all risks and challenges, and achieve sustained and sound economic development," he said. The Chinese economy enjoys bright prospects and "we have every confidence in realizing high-quality development," he added. This year's WEF annual meeting has drawn around 3,000 participants from over 100 countries and regions. The meeting, under the theme "Stakeholders for a Cohesive and Sustainable World," will focus on renewing the concept of stakeholder capitalism to overcome income inequality, societal division and the climate crisis. ^ top ^

China GDP growth last year was 6.1 per cent, slowest rate for 29 years (SCMP)
2020-01-17
China's economy grew by 6.1 per cent in 2019, the lowest annual growth rate for 29 years, the National Bureau of Statistics announced on Friday. The gross domestic product (GDP) figure came in a year in which the Chinese economy was hammered by US tariffs as a result of the trade war. The new data comes a day after China and the United States signed a long-waited phase one deal on Wednesday, marking something of a ceasefire in the trade dispute between the world's two largest economies. However, despite falling to a new low since 1990, when political turmoil drove economic growth down to 3.9 per cent, the 6.1 per cent rate met the target range of between 6.0 per cent and 6.5 per cent set by the central government at the beginning of last year, but was below the market expectation of 6.2 per cent. The headline figure was in line with forecasts of the International Monetary Fund and the World Bank for China's economic growth this year. In the fourth quarter of last year, the country's GDP growth rate was unchanged at 6.0 per cent from the July-September period. However, this matched the lowest quarterly growth on record. Industrial production, which gauges China's output in manufacturing, mining and utilities, grew by 5.7 per cent last year, slightly better than analysts' estimates of 5.6 per cent, but a drop from 6.2 per cent in 2018. Retail sales, a key indicator of consumer spending in the world's most populous nation, grew by 8.0 per cent last year, down from 9 per cent in 2018. This was in line with market expectations. Fixed asset investment grew by 5.4 per cent over the course of 2019, a slight improvement on the 5.2 per cent growth reported in November in year-to-date terms, which was the joint lowest in history. In December, the industrial economy experienced a bounce as the trade deal neared. Industrial production grew by 6.9 per cent, way above analysts' forecasts of 5.9 per cent and the fastest rate of growth since March. Data announced last week showed that in December, China's exports grew by 7.6 per cent, up from minus 1.3 per cent in November. Imports rose 16.3 per cent in December, up from 0.3 per cent in November. Retail sales grew by 8.0 per cent last month, ahead of analysts' forecasts of 7.9 per cent and unchanged from November. Policymakers in Beijing may be relieved to have kept the official growth rate above the psychologically important 6.0 per cent mark, but more challenges await in 2020. The trade deal will take some of the pressure off, with China set to launch a huge purchasing programme that will drive up its imports from the US, but structural problems remain. Furthermore, many are doubtful about the prospects of the deal holding. "The phase one deal is only an interim agreement between China and the US. In fact, to push for negotiation in the next stage, the US will keep existing tariffs on imports from China unless the two countries manage to reach a phase two deal," said Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis. "In the bilateral evaluation and dispute resolution chapter, the agreement also makes it clear that, if the concerns cannot be resolved, the two parties hold the right to suspend an obligation, adopt a remedial measure, or in the worst case, withdraw from the agreement." Chinese policymakers stepped up efforts of curbing a prolonged economic downturn last year, using tax cuts and monetary stimulus regularly. However, the phase one deal led central bank officials to tell a press conference in Beijing on Thursday that its monetary policy would remain "prudent" through this year. "There might be room [to cut] according to the needs of the macroeconomy, but it would be limited," said Sun Guofeng, head of the monetary policy department at the People's Bank of China. "We expect Beijing to introduce more easing measures and stimulus in coming months, but the scale of the stimulus package will likely be much smaller than those in previous easing cycles. We believe quarterly GDP growth of below 6.0 per cent is inevitable in coming quarters," wrote Nomura analysts in a note. However, at a press conference in Beijing on Friday morning, Ning Jizhe, an NBS spokesman, focused on the fact that China's per capita income rose above US$10,000 last year for the first time in history, claiming that "China's pace of progress is unstoppable". "It showed that the quality of China's economic development is improving," Ning said. ^ top ^

 

DPRK

Wuhan virus: North Korea bans tourists as Asia braces for Lunar New Year rush (SCMP)
2020-01-22
North Korea's decision to ban all foreign visitors as a precaution against China's coronavirus outbreak will hit its economy hard as tourists from the mainland account for 85 per cent of its 100,000 tourists each year, analysts say. Tourist earnings contribute US$45 million to Pyongyang's economy, which has limited sources of foreign exchange due to sanctions over its nuclear programme. "This is bad news for North Korea but I suspect the greater concern is the public health risk," said Daniel Pinkston, who lectures in international relations at Alabama's Troy University. "[The outbreak of] a disease would have a greater impact on its society and pose a greater challenge for it than the lost tourism revenue." The new coronavirus has killed nine people and infected 471 on the mainland, while four cases have been reported in Thailand. Macau, Taiwan, Japan, South Korea and the United States have reported one case each. Hong Kong reported its first confirmed case of the coronavirus on Wednesday, after a tourist from Wuhan came to the city via high-speed rail from Shenzhen was detected to have a high fever at the border. Health Minister Sophia Chan said the patient came to Hong Kong with four family members, who spent Tuesday night at a hotel in the Tsim Sha Tsui tourist district flying to Manila earlier on Wednesday. His family did not have any symptoms. Given how fast the virus is spreading, medical professionals said quarantine was the best approach to contain it. Kim Yong-hyun, a professor at South Korea's Dongguk University, said the North in 2003 closed its borders for up to two months to prevent the spread of severe acute respiratory syndrome (Sars). In the Philippines, local media reported that MP Rozzano Rufino Biazon had asked the country's Civil Aviation Authority to suspend direct flights from Wuhan to the central province of Aklan, while two senators urged government agencies to put up stricter quarantine areas, or "firewalls", for travellers who test positive for the coronavirus. One of them, Senate health committee chair Bong Go, said the protocols were needed this week as "millions of Chinese nationals" are expected to travel to the country during Lunar New Year. Australia's Health Minister Greg Hunt on Wednesday warned that authorities could force anyone showing symptoms of the disease to go to hospital, after previously saying the country was "vulnerable" to the virus as "we have had a direct contact with China". A Brisbane man being tested for the coronavirus has been released from isolation pending test results. Public hospital emergency departments in Singapore are on "outbreak response mode", as National Centre for Infectious Diseases executive director Leo Yee Sin said he could not rule out the possibility the virus would reach the island nation, according to local media. Singapore also announced it was setting up a task force involving multiple ministries to tackle the Wuhan virus should it hit the city state. There are three new suspected cases of the virus in Singapore, which the health ministry is investigating; it has already cleared seven others. The Southeast Asian state on Wednesday started screening all passengers arriving on flights from China to avoid transmission of the flu-like virus, and advised travellers against non-essential travel to Wuhan. There have been no confirmed cases of the virus to date in Singapore, but Health Minister Gan Kim Yong said it would only be a matter of time. "It is inevitable that we will see an imported case sooner or later," Gan said in comments reported by local broadcaster Channel NewsAsia. South Korea, meanwhile, is bracing for the Lunar New Year holiday, during which up to 130,000 tourists from mainland China are expected to visit the country. Health authorities have set up additional thermal imaging cameras to screen visitors at airport immigration gates, and have launched a task force to deal with the virus. The first confirmed case in South Korea – a 35-year-old Chinese woman from Wuhan, where the virus was first detected – has been in stable condition since she was placed in quarantine on Sunday immediately after flying into Incheon, according to the Korea Centres for Disease Control and Prevention. Thailand, meanwhile, has quarantined four patients with the new coronavirus including one Thai national, authorities said on Wednesday. The Thai patient, a 73-year-old woman, had travelled to Wuhan during the New Year holidays and developed a fever after returning, according to the Public Health Ministry. She was being monitored in a separate ward in a hospital in Nakhon Pathom, 60km west of Bangkok, where her condition was gradually improving. "We can control the situation. There have not been cases of human-to-human transmission in Thailand because we detected the patients as soon as they arrived," Public Health Minister Anutin Charnvirakul told reporters. Two other Chinese patients had recovered and been sent home while a third would return once tests showed he was clear of the virus, Anutin said. Thai officials were stepping up screening at airports to look for passengers with high body temperatures, coughs, headaches and trouble breathing, police said. Masayuki Saijo, the virology division head of Japan 's National Institute of Infectious Diseases, has expressed concern at the speed with which the virus has spread in spite of efforts to curb it and warned that any claim the outbreak is under control is incorrect. "It has continued to grow and the number of people affected is continuing to rise and it has spread much faster than I had originally expected," he said. "It is very important that the international community works closely together and cooperates to find solutions." Prime Minister Shinzo Abe summoned his ministers to a meeting on Tuesday and instructed them to take all necessary measures to halt the spread of the illness. Of particular concern, he said, was the large number of Chinese tourists who are expected to travel to Japan for the Lunar New Year, which falls on Saturday. Japan's health authorities have so far confirmed one case of the virus, with that person subsequently making a full recovery. ^ top ^

North Korea may 'seek a new path' after dumping nuclear testing pledge (SCMP)
2020-01-21
North Korea on Tuesday said that as the United States had ignored its year-end deadline for nuclear talks, it no longer felt bound by commitments, which included a halt to its nuclear testing and the firing of intercontinental ballistic missiles. "We found no reason to be unilaterally bound any longer by the commitment that the other party fails to honour"," Ju Yong Chol, a counsellor at North Korea's mission to the United Nations in Geneva, told the UN-backed Conference on Disarmament. Speaking as the envoy from the People's Democratic Republic of Korea (DPRK), he accused the United States of applying "the most brutal and inhuman sanctions", adding: "If the US persists in such hostile policy towards the DPRK there will never be the denuclearisation of the Korean peninsula". "If the United States tries to enforce unilateral demands and persists in imposing sanctions, North Korea may be forced to seek a new path," Ju added. ^ top ^

North Korea replaces foreign minister, indicating diplomatic reshuffle after US talks stall (SCMP)
2020-01-19
North Korean foreign minister Ri Yong-ho has been replaced, Seoul-based NK News reported on Saturday. The usually well-informed outlet, citing multiple unnamed sources in Pyongyang, said Ri would be replaced by Ri Son-gwon, the former chairman of the Committee for the Peaceful Reunification of the Country (CPRC), who played a prominent role in inter-Korean talks in early 2018. North Korea news said the move, of which there has been no mention in official North Korean media, was part of a major political reshuffle that could have a significant impact on the country's diplomatic stance. The outlet said it would likely be confirmed on or before Thursday, when an event for resident diplomats is scheduled in Pyongyang. South Korea's unification ministry, which is in charge of North Korea affairs, has said that any change in Ri's status should be assessed cautiously. The US State Department, which has been seeking unsuccessfully to revive talks aimed at persuading North Korea to give up its nuclear weapons, did not immediately respond to a request for comment. Ri Yong-ho, who was born in 1956, did not attend the annual gathering of world leaders at the United Nations in September. He had attended the high-level meeting in New York for three years from 2016 to 2018. North Korea News said his absence from a group photo of top ruling party officials at a meeting in January raised speculation that he may have been replaced amid a broader political reshuffle that saw notable promotions and possible demotions of prominent figures in North Korea's military, cabinet, and more. South Korea's Yonhap news agency cited a source in Beijing as saying that North Korea's top envoys to China and the United Nations returned to Pyongyang on Saturday. It said this was spurring speculation that North Korea could review its nuclear negotiating strategy with the United States. The agency quoted its source as saying that the ambassador to China, Ji Jae-ryong, and the envoy to the United Nations, Kim Song, left for Pyongyang from Beijing airport in the morning. It said North Korean ambassadors to Angola and Singapore were also seen at the airport, indicating a possible meeting of North Korea's overseas diplomatic mission chiefs in Pyongyang. Some 10 other North Korean diplomats accompanied the top envoys on the flight, Yonhap said. A fluent English speaker who studied at Pyongyang's prestigious University of Foreign Languages, Ri Yong-ho has for years held a number of high-level posts dealing with the West. From 2003 to 2007, he was North Korea's ambassador in London and served as vice foreign minister, representing North Korea at now-defunct six-party talks on North Korea's nuclear programme. ^ top ^

 

Mongolia

President Kh.Battulga attending World Economic Forum 2020 (Montsame)
2020-01-22
The 2020 annual meeting of the World Economic Forum (WEF) opened yesterday, January 21, with the theme of 'Stakeholders for a Cohesive and Sustainable World' in Davos, Switzerland. More than 3000 global leaders from 117 countries, including heads of states, are convening to have discussions in six key areas of ecology, economy, technology, society, geopolitics and industry. Attaching great significance to the World Economic Forum, Mongolia took part in the event at a Presidential level annually between 2009 and 2011 and also 2013 and 2017. In the years of 1997, 1998, 2001, 2002, 2003 and 2012, Prime Ministers of Mongolia attended the WEF and in 1991, 2018 and 2019, delegates headed by government ministries were sent to the event. This year, President of Mongolia Kh.Battulga is taking part in the Davos Forum. On the opening day of the WEF, President Kh.Battulga attended panel sessions on combating air pollution and Eurasian new outlook – Partnership for sustainable development, exchanging views on improving regional interconnections with heads of world countries and experts. On the second day of the forum, January 22, President Kh.Battulga is due to hold bilateral meetings with some heads of states and take part in panel sessions. ^ top ^

Cabinet meeting news in brief (Montsame)
2020-01-22
Following decisions were made during the Cabinet meeting held on January 22: Prime Minister U.Khurelsukh worked in Gobisumber, Khentii and Tuv aimags last week. On the basis of requests made by the authorities of aimags, soums and herders, Deputy Prime Minister U.Enkhtuvshin was assigned to provide hay and fodder from state reserve, necessary vehicles and equipment as well as to set up branch unit of Emergency Management Agency in Batshireet soum of Khentii aimag. Moreover, Minister Ch.Ulaan was obliged to increase meat export, prepare reserve-meat, add the number of skin and leather processing small and medium-sized plants to be founded in aimags and soums, carry out projects and render loan support while Minister D.Sarangerel was tasked to study and resolve issue on giving ambulance vehicle to health center of Bayantal soum of Gobisumber aimag. The Cabinet approved a list of works to be organized by the State Procurement Office and a list of projects and actions to be implemented in aimags and the capital city with state budget investment in 2020. The General Budget Administrator and authorities of the State Procurement Office were obliged to organize procurement activities through online system /tender.gov.mn/ and permanently post procurement activity plan, invitation to tender and its results on online system. Ministers and Governors of the capital city and aimags were tasked to render all-round support and cooperate in ensuring implementation of '150 thousand households-Apartment' national program and plan. Corresponding Ministers were also obliged to cover required money for engineering infrastructure project and actions in 21 aimags and for building apartments for rent in 12 aimags from state and local budgets, foreign loans and aids as well as to study possibilities to resolve them with investment of the Development Bank and introduce it to the Cabinet. The Cabinet decided to negotiate with the side of China on covering required first stage financing for developing engineering infrastructure buildings and facilities in ger districts of Ulaanbaatar city with non-refundable aid of China. The Cabinet decided to submit a draft law to the Parliament on ratifying agreement between Mongolia and the Czech Republic on social protection. As of 2019, 8813 Mongolian citizens are living in the Czech Republic. The Cabinet finalized Intergovernmental Agreement between Mongolia and the Republic of France on Cooperation in Civilian Security Sector. It aims to broaden scope and cooperation directions in disaster protection sector, improve capacity of human resources, conduct training, improve special purpose equipment of seek and rescue operation and extinguishing fire as well as empowering the Emergency Management and Warning Center. The Cabinet resolved to upgrade preservation and safeguard of ancient map fund that are proof of history, cultural heritage and independence and publicize them through publishing three volumes of historic maps. There are more than 200 old maps and versions of maps and drafts in the state archive of land relations. Over 800 maps dating back to XVIII-XX centuries are being preserved in the National Library of Mongolia, the National Central Archives and local museums. ^ top ^

Comprehensive changes to be made in governance through Vision-2050 document (Montsame)
2020-01-21
The 'Vision-2050' is a policy document, which was formulated by a working group comprising of 1500 people, including scholars, experts and state secretaries of 13 ministries, heads of some government agencies, authorities of universities and representatives of non-government organizations. According to the Prime Minister's order No: 52 dated April 30, 2019, the working group analyzed development stages of the past 30 years of Mongolia and formulated the policy document that will define long and mid-term development policy until 2050. We are presenting 9 fundamental goals of the development policy in detail. Good governance is defined as an efficient, appropriate method to define and implement state policies based on the state of the social system, and economy as well as in conducting assessments and evaluations. The traditional governing approach that is implemented under the sole authority of the government and its agencies has begun to be replaced by a new approach that prioritizes the participation of citizens, civil society, and private entities. In other words, it is now considered as a joint operation by the government and the aforementioned parties. Thus, this approach has been set as the base methodology for good governance that provides human development in Mongolia. It goes without saying that one of the core pillars for national development is the matter of governance as it creates challenges and issues at all levels of society. For this reason, in defining the national development policy, certain requirements and factors to consider have been set, such as citizens' participation in choosing their government, political stability, quality and accessibility of state services, government organizations' capacity to be held accountable, policy supporting of private entities on national and local levels, and establish and localize good governance that will limit corruption and conflict of interest. Thus, in the framework of the goal to establish good governance that provides human development opportunities, six objectives have been set: Make changes to the allocation of authority, its monitoring, and balance to be more optimal, and create sustainable governance More specifically determine the allocation of authority by optimally defining the structure and organization of government organizations Develop efficient e-governance that supports human development Develop professional, skilled, transparent, efficient, and smart state services for citizens Create an appropriate system that includes the participation of all parties involved in the national development policy, planning, and implementation by strengthening the partnership between civil society, private entities, and the government Reduce cases of corruption and abuse of power by strengthening the national justice system Measures on each objective will be taken in three phases, with Phase 1 taking place between 2020-2030, Phase 2 between 2031-2040, and Phase 3 between 2041-2050. ^ top ^

 

Jennia Jin
Embassy of Switzerland
 

The Press review is a random selection of political and social related news gathered from various media and news services located in the PRC, edited or translated by the Embassy of Switzerland in Beijing and distributed among Swiss Government Offices. The Embassy does not accept responsibility for accuracy of quotes or truthfulness of content. Additionally the contents of the selected news mustn't correspond to the opinion of the Embassy.
 
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