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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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  1-5.6.2020, No. 819  
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Table of contents

DPRK

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Switzerland

Chinese consulate helps stranded students at Zurich airport (Global Times)
2020-06-03
As the pandemic and protests against racism escalate in the US and in other Western countries, panic has risen among Chinese students studying overseas. A growing number of students have tried to fly back to China, but have suffered from flight cancellations or sometimes been stranded in a transit airport. In a latest development, 17 were stuck in Zurich Airport and receiving help from the Chinese consulate general on Wednesday. China's Consulate General in Zurich and for the Principality of Liechtenstein told the Global Times on Wednesday that they received a consulate protection call from 21 Chinese stranded in Zurich Airport as they could not board a flight due to local epidemic-control measures. Among them, 17 are Chinese students studying overseas. The consulate general immediately assigned staff with protective kits and food to help the compatriots, and arranged accommodations for them. The consulate general have been negotiating with the airport and other related parties on the stranded students for next trip. "We are trying to make a reasonable, compliant and safe plan for them," said a staff member of the consulate general. The response came after an article on a WeChat official account for the Chinese student community in North America said early Wednesday morning that 22 Chinese students are stranded at Zurich Airport. The article said the students had planned to travel from cities in the US to New York and fly to Switzerland by Swiss International Airlines, and fly back to China via Singapore's Changi Airport. However, when they arrived in Zurich and were about to transfer to Singapore, they were informed that they could not board, as Swiss International Airlines has not been permitted to fly through Changi Airport, said the article. Singapore on May 20 announced that transit passengers would again be allowed starting June 2, media reported. Although the specific requirements and details for transit passengers have not been released, many students are still eager to go home, the WeChat article said. The stranded students are likely to be sent back to the US and other departure locations. However, many of their visas have expired, the article said. The incident sparked concerns among the public, with many worrying about their health and condition. Zhang Sheng, a fresh graduate of Johns Hopkins University in Baltimore, told the Global Times on Wednesday that he flew back from New York on May 27 for fear of the pandemic. In the wake of the worldwide outbreak, many Chinese students overseas have to stay abroad as international flights have been strictly restricted, and the students worry about getting infected with the coronavirus on the flights. However, the recent unrest and chaos from the anti-racism protests have thrown the students into fear and intensified their desire to return home, Zhang said. Zhang shared with the Global Times some details of the riots he heard of in Washington DC and Baltimore where he lived. "My friends saw armored vehicles, helicopters and National Guardsmen. During the riots, they saw shops smashed and burning cars." Another Chinese student, Tang Yifei, who studies at the University of Florida in Gainesville, told the Global Times he decided to stay in the US after flights he booked were all cancelled. His determination to stay strengthened after the US government announced it would further restrict the entry of some Chinese students and scholars. "I'm worried if I return China, I couldn't go back to the US to finish school." Zhang and Tang both expressed concerns that the number of COVID-19 cases could further surge in the US as protests continue. China's Consulate General in Houston said Wednesday that Air China's temporary flight, CA996, which was scheduled for May 19 to North China's Tianjin Municipality, has been given the green light and would resume on Thursday local time. According to previous reports, about 180 Chinese students are stranded in Houston. ^ top ^

 

Foreign Policy

Chinese premier delivers speech at global vaccine summit (Global Times)
2020-06-05
Chinese Premier Li Keqiang said on Thursday that China will continue to support the core role of the World Health Organization (WHO) in coordinating vaccine research, while making its contribution to ensuring vaccine accessibility and affordability in developing countries. Li made the remarks in a speech at a virtual global vaccine summit, which was held to raise funds for the Global Alliance for Vaccines and Immunisation (GAVI), with a view to ensuring vaccine accessibility worldwide. In particular, funds will be directed to accelerating research, development, production and distribution of a vaccine for the novel coronavirus disease (COVID-19). Leaders from more than 30 countries and heads of international organizations, including the United Nations and the WHO, attended the summit. Li said that, in dealing with the COVID-19 infection, China has put people's lives first, effectively containing the epidemic by making arduous efforts. However, the pandemic is not over, said Li, adding that no country is immune from the virus, and that the health and safety of the various populations are closely connected. Li said that, at the opening of the 73rd session of the World Health Assembly (WHA) last month, China proposed building a global community of health for all, and put forward suggestions and measures to promote global cooperation in COVID-19 response. He added that China would continue to provide assistance, within its capacity, to help with COVID-19 response and social and economic recovery in affected countries, especially developing nations. Li said that the challenges remain severe, with vaccines representing a strong shield to defend against the virus. He pointed out that China will continue to promote clinical trials in multiple centers, and facilitate market entrance as soon as possible, once the goals of research and development have been accomplished, so as to provide the world with a safe, effective and high-quality global public good. Noting that China has been stepping up scientific research on COVID-19 vaccines, medicines, and testing reagents, Li said China attaches great importance to international cooperation in vaccine research and development. China recently participated in the European Union (EU) COVID-19 online pledging conference, and is willing to continue to strengthen relevant cooperation with all parties, Li said. GAVI has maintained good cooperation with China and has invested in supporting China's vaccination and international applications, said Li. He expressed the Chinese government's willingness to contribute to GAVI's funding cycle, encourage China's R&D institutions and vaccine manufacturers to strengthen collaboration with the GAVI, and support GAVI's important role in promoting the use of vaccines. "We hope to work together to overcome the epidemic as soon as possible," Li said. ^ top ^

China proposes ASEAN Plus Three collaboration in epidemic control, economic development (Xinhua)
2020-06-05
Members of the Association of Southeast Asian Nations, China, Japan and the Republic of Korea (ASEAN Plus Three or APT) should strengthen cooperation in combating COVID-19 and promoting economic development, Minister of Commerce Zhong Shan said Thursday. China is willing to share anti-epidemic experiences with countries in the region and will continue to support their commercial purchase of medical supplies in China, Zhong said at a video conference on COVID-19 control attended by ASEAN Plus Three trade and investment ministers. Countries in the region should step up trade and investment cooperation, stabilize and enhance regional industrial and supply chains and maintain smooth flow of people and logistics to mitigate the impact of COVID-19 and restore regional economic growth at an early date, Zhong said. He also called on the countries to deepen regional economic integration and implement the consensus of the special summit of ASEAN Plus Three held in April on striving to sign the Regional Comprehensive Economic Partnership this year. The parties agreed that deepening anti-epidemic and economic cooperation is of great importance to promoting regional economic integration and joint efforts should be taken to fight against the disease, stabilize regional industrial and supply chains and preserve a free, stable and fair trade and investment environment. It was also agreed that the parties should keep markets open, safeguard multilateral trade system, and enhance collaboration in trade and investment. The meeting was chaired by Vietnam, which holds the ASEAN presidency. After the meeting, a statement on mitigating the impact of COVID-19 on economy was issued. ^ top ^

PLA holds intensive landing, naval drills in 'warning to secessionists' (Global Times)
2020-06-04
The Chinese People's Liberation Army (PLA) has been holding frequent and intensive amphibious landing and naval drills in what analysts said are sending warnings to Taiwan secessionists. Some of the recent exercises featured amphibious tanks storming the beaches and civilian ships transporting tanks and armored vehicles across the sea. Ongoing drills may feature China's second aircraft carrier the Shandong, as well as other advanced warships, or even the test firing of new weapons like the JL-3 submarine-launched ballistic missile or the electromagnetic railgun. The PLA 73rd Group Army recently conducted a live-fire assessment in a location on the southeastern coast, in which 68 amphibious tanks stormed the beaches from the sea in a coordinated attack under a rough sea situation, as the tanks launched concentrated main gun shooting and released smoke to camouflage the assault, China Central Television (CCTV) reported on Wednesday. In another training operation, the PLA 74th Group Army used a large civilian cargo ship to transport more than 50 tanks, armored vehicles and infantry fighting vehicles across the sea, according to a separate report by CCTV. The 73rd Group Army and the 74th Group Army are based in eastern and southern China, and both are believed to be the main forces which would be used in a potential landing mission on the island of Taiwan. The subjects featured in these two exercises are normal and routine, and they are basic capabilities of the PLA, a military expert who asked not to be named told the Global Times on Thursday. The PLA always stands ready to reunify Taiwan and safeguard national sovereignty and territorial integrity, and Taiwan secessionists should not underestimate this, the expert said. In addition to these amphibious exercises, the PLA is conducting naval drills in the Bohai Sea, according to the Maritime Safety Administration. A military mission is ongoing from Tuesday to June 16, and a live-fire drill will be held from Friday to Wednesday, both in the Bohai Sea, read two navigation notices released by the administration this week. While neither notice gives any detail on the two drills, military observers noted that at least one likely features China's second aircraft carrier, the Shandong. It has started military missions since May 25 to test its weapons and equipment and improve the level of aircraft carrier training to enhance the troops' ability to perform missions and tasks, said Senior Colonel Ren Guoqiang, spokesperson for the Ministry of National Defense, at a regular press conference on May 29. When the Shandong set out on May 25, a Maritime Safety Administration notice restricted access to an area in the Yellow Sea from May 25 to Tuesday. This time period connects to the Tuesday-to-June 16 restriction notice, meaning the Shandong might be now training in the Bohai Sea, as the carrier has not been seen back in shipyard, observers noted. Few information is available for the other drills, as military analysts said they could be regular exercises featuring China's advanced warships that focus on tactical and technical training. Some have even speculated that they may involve test firings of new weapons like the JL-3 submarine-launched ballistic missile or the electromagnetic railgun. Near the Bohai Bay, the PLA is also conducting a live-fire drill in the northeastern sea areas off Tangshan, North China's Hebei Province, from mid-May to the end of July. These exercises show the PLA has entered an intense training season with the aim of boosting combat capability, the anonymous expert said, noting that if COVID-19 brought any delays to the training schedule, they are likely being caught up. ^ top ^

China-US financial war over Hong Kong unlikely given damage it would do to both sides, analysts say (SCMP)
2020-06-04
As relations between Beijing and Washington continue to deteriorate, there is growing concern that the United States will start a full-fledged financial war that would limit China's access to American financial markets and global financing. While there have been some initial moves to restrict China's access to US capital markets, analysts agree that a major conflict is not on the cards in the near term, in large part because it would hurt the US as much as China. China and the US are "not even close" to a financial war, since both sides still have a US$4 trillion financial relationship, and "moves to restrict this relationship have barely begun," said Scott Kennedy, a China expert at the Centre for Strategic and International Studies in Washington. Ding Shuang, chief China economist at Standard Chartered, echoed Kennedy's view, saying that current tensions are more "skirmishes" than a "war". However, if the US moves to sanction Chinese banks in retaliation for Beijing imposing a national security law on Hong Kong, there would be retaliation, with China possibly sanctioning American companies operating in the country, Ding said. This would be a "lose-lose" situation. Nevertheless, recent steps by the US can be seen as the opening salvoes in a broader effort to tighten China's access to US capital markets. In early May, US President Donald Trump issued an executive order banning the main government pension fund from investing in Chinese stocks, tying the move to allegations that China hid information about the extent of the coronavirus and had committed human rights violations against the Uygur minority in Xinjiang province. The fund held US$557 billion in assets compared to US$22.4 trillion in assets for all US pension funds at the end of 2018. Private-sector funds have so far not followed Trump's lead. In late May, the US Senate passed a bill that would require Chinese firms listed on US exchanges to follow US standards for financial audits, require full disclosure of state ownership stakes and whether senior managers are members of the Chinese Communist Party. The bill must still be passed by the House of Representatives and signed by Trump to become law. The requirement that Chinese firms follow US auditing rules has been an issue for years but was given new life by the Luckin Coffee scandal, in which senior executives forged sales figures to boost the company's outlook. But the disclosures of state ownership and Communist Party affiliations are new and targeted directly at China's many state-owned firms. Chinese firms listed in the US are subject to less rigorous disclosure requirements than their American counterparts, which could give them a competitive advantage if they receive below-cost financing or subsidies from the Chinese authorities, the US-China Economic and Security Review Commission said in its 2019 annual report. As of September 2019, 172 Chinese firms were listed on major US exchanges, with a total market capitalization of more than US$1 trillion, according to the commission. A growing number of US-listed Chinese companies are expected to list shares in Hong Kong amid growing US scrutiny, said Standard Chartered's Ding. "Few Chinese companies will seek US listings if the [Senate] bill becomes law." Chinese tech companies, already under pressure from growing US limitations on their connections with US firms, have already started to hedge their bets. Nasdaq-listed Chinese gaming and internet service firm NetEase is launching a secondary listing in Hong Kong, with e-commerce company JD.com expected to follow. Pinduoduo, another Chinese e-commerce operator listed in the US, was reported by local media to be pondering a Hong Kong listing, which the company denied. Zhu Ning, a professor of finance and deputy dean at the Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University, predicted China would probably increase the financial-disclosure requirements for its domestic companies, regardless of their listing location, because this would be "a healthy development for the Chinese capital market itself". China could also further develop its corporate debt market to provide alternative ways of financing to Chinese companies losing access to the US market, Zhu said. Beijing has been making a special effort to please US financial firms, in part by offering them full control of their Chinese joint ventures. The opening of China's financial markets is a long-standing US demand that was included in the phase one trade deal. Goldman Sachs and Morgan Stanley received permission from Beijing in March to take majority stakes in their local securities joint ventures, as Beijing signalled it would open the domestic financial market wider to foreign firms. The Chinese government also removed quotas on qualified foreign institutional investors buying onshore stocks and bonds, meaning at least in theory that foreigners can now invest as much as they like in Chinese securities. The immediate effect of the easing is expected to be limited, given that the government never fully filled the previous quotas for the programme due to lack of demand. Questions have also arisen about China's continued access to the international capital markets following Trump's vow to impose sanctions should Beijing impose a national security law on Hong Kong. It remains an open question how far the US will go on the financial front, though many analysts think the US will not impose penalties that would affect US financial firms doing business in the city. A bipartisan bill introduced by two US senators last month would place sanctions on Chinese officials and banks that do business with entities deemed to be in violation of Hong Kong's Basic Law, the mini-constitution agreed upon between Britain and China for the city after the handover. The Trump administration, however, has not yet given any specific detail of its sanctions plan. Diana Choyleva, chief economist at Enodo Economics, said there is a "nuclear option" for the US to block Chinese banks from the US dollar clearing system. "While a blanket ban is unlikely at this stage, even targeted curbs would have significant implications," she said. Anything is possible in the current US-China environment, said Zhu Ning, but blocking banks from the clearing system is a very dangerous move that would hurt both countries. "China may suffer more globally, but the US has to keep in mind that its domestic manufacturing and consumption will suffer considerably as well," Zhu added. Paul Chan Mo-po, Hong Kong's finance secretary, said last weekend that the city has nothing to fear from potential US sanctions. Yu Yongding, a senior fellow at the Chinese Academy of Social Sciences, said China would "roll with the punches" from any potential sanctions but would never initiate any financial attack, adding that a financial decoupling between US and China looks impossible at this stage, despite some US senators calling for it. "US-China financial ties will change once the environment changes, which we have been talking about for a long time. China won't show all the cards in its hand, but it does have a series of countermeasures if the situation worsens," said Yu, a former adviser to the People's Bank of China. ^ top ^

China-India dispute highlights both sides' growing military presence at border (SCMP)
2020-06-04
The latest tensions between China and India have further fuelled both countries' build-up of troops and weapons to assert territorial claims at their disputed border areas, with China's People's Liberation Army (PLA) stepping up advanced arms testing and training at high altitude. There has been no official confirmation of the numbers of troops each nation has deployed, but reports have suggested that the PLA has sent multiple advanced weapon systems and refitted fighter jets for operation in high altitude areas of the Tibetan plateau. The Indian army, too, has moved several battalions from an infantry division usually based in the Ladakh city of Leh, near the border, to "operational alert areas" along the frontier, and reinforcement troops have been brought in. Hong Kong-based military expert Liang Guoliang said Beijing had deployed at least nine combined arms brigades – with specialities including mountain infantry, artillery, air defence, aviation, chemical and nuclear, and electronic warfare – to the Tibet Military Region, a PLA district dedicated to border disputes with India. There have been tensions at the border for the past month, with troops from the two nations involved in fist fights and stone-throwing in the Galwan River valley between Ladakh in Indian-administered Kashmir and Chinese-administered Aksai Chin. Border conflicts between China and India escalated in 2017, when Indian troops and the PLA staged their most serious confrontation, over China's construction of a road in Doklam near a tri-junction border area known as Donglang or Donglang Caochang in Chinese, territory that is claimed by both China and Bhutan, an ally of India. Since the Doklam stand-off, the PLA has expanded its arsenal, sending weapons such as the Type 15 tank, Z-20 helicopter, GJ-2 attack drone and PCL-181 advanced vehicle-mounted howitzer to the Tibetan plateau, according to reports this week by Global Times, the nationalist Chinese tabloid affiliated with People's Daily, mouthpiece of the ruling Communist Party. On Monday, China's state broadcaster CCTV reported that a PLA scout unit had in recent days mobilised towards a target in the Tanggula Mountains at an altitude of 4,700 metres (15,420 feet) using night vision devices on their vehicles to avoid drone surveillance. In 2017, CCTV broadcast a video about a PLA artillery brigade testing the PCL-03 howitzer when the confrontation in Doklam was escalating. According to satellite images, China's troops have begun expanding the country's airbase in Ngari Gunsa in Tibet, about 200km (124 miles) from Ladakh. The images also showed that the PLA had deployed its J-16s – multi-role fighter jets – to the dual-use military and civilian airport. "The J-16s were supposed to be deployed to Ngari Gunsa for regular training, but like the J-11s and other fighters, they stayed there because of the stand-off," a military insider said. "The Indian Air Force has deployed more aircraft to the borders, so the PLA needs to deploy the J-16s, which are more advanced than India's Su-30MKI fighters." Beijing military expert Zhou Chenming said video clips in 2017 and this week were aimed at warning the Indian military that the PLA was raising its skills. "China has kept deploying upgraded and new weapons, including aircraft like the Z-20 helicopter, J-10C and J-11, to altitudes of up to 5,000 metres above sea level on the Tibetan plateau for training and testing," he said. "But those are just warnings to show the PLA's capability, not really aimed at waging war with Indian troops, because Beijing realises that India is not China's real enemy – despite the United States' attempts to bring India into its Indo-Pacific strategy to counter a rising China." Zhou said the PLA had kept its troop numbers at 70,000 along the 3,488km frontier between China and India, while Indian troops numbered up to 400,000. However, Rajeswari Rajagopalan, a defence analyst from the Observer Research Foundation think tank in New Delhi, said India had fewer than 225,000 troops along the border. "According to the most recent estimates from experts at MIT [Massachusetts Institute of Technology], China has 230,000 to 250,000 troops in its Western Theatre Command," she said, referring to the PLA joint command that includes Tibet and Xinjiang. "It should be noted that a lot of those Indian forces are not facing China, and a significant number of them are for counter-insurgency purposes. "The Indian troops are not actually on the border, and India faces significant difficulties in getting forces to the border because of the mountainous terrain." Liang said there were usually fewer than 40,000 Chinese army troops at the border, but reinforcements could be sent from the neighbouring provinces of Qinghai and Gansu, or even Xinjiang and Sichuan as required. Rajeev Ranjan Chaturvedy, a Delhi-based defence commentator and author of The Geopolitics of Chinese Access Diplomacy, said the friction between the two countries stemmed from India's suspicion about China's increasing infrastructure investment near the disputed borders. "Chinese infrastructure is bigger and better. As China develops and continuously improves its strategic access, it wants others not to do so," he said. "However, India is determined to improve accessibility to border areas and it does not need approval from Beijing to develop its own border infrastructure." ^ top ^

Xi says China ready to work with Germany, EU to create more global certainty (Xinhua)
2020-06-04
Chinese President Xi Jinping said Wednesday that China stands ready to work with Germany and the European Union (EU) to strengthen strategic cooperation, uphold multilateralism, tackle global challenges, and jointly add certainty to the current world of uncertainty. In a telephone conversation in the night with German Chancellor Angela Merkel, Xi noted that it was the third time since the onset of the COVID-19 outbreak that he and Merkel had spoken over the phone, which reflects the deep political mutual trust and close strategic communication between the two sides. The Chinese side appreciates the German government's objective and rational stand as well as its respect for science on the pandemic issue, Xi said. He added that China is ready to work with Germany to support the work of the World Health Organization (WHO), promote international cooperation within such frameworks as the United Nations and the Group of 20, help African countries fight the coronavirus disease, and contribute to safeguarding global public health security. Stressing the need to coordinate epidemic control and economic and social development, Xi said the general trend of the Chinese economy towards stable long-term growth with a sound momentum remains unchanged. China, he added, will stay committed to further opening up to and expanding cooperation with the rest of the world, and continue to create a favorable environment for German enterprises to increase investment in China. The recently launched China-Germany "fast track" arrangement will help enterprises in both countries to speed up business resumption, and maintain the stability of international industrial and supply chains, he said. The Chinese president said he is confident that China-Germany cooperation will play its due role in helping pull the world out of the economic recession at an early date. With China and Germany maintaining a stable and sound cooperative relationship, China stands ready to continue dialogue and exchanges with Germany, Xi said. Noting that Germany is to take over the rotating presidency of the European Union (EU) for the second half of this year, he added that China appreciates Germany's willingness to actively promote the development of China-EU ties. As a series of significant events of China-Germany and China-EU political exchanges are now under discussion, China is willing to keep close communication and coordination with Germany and the EU to ensure the success of these events and lift China-Germany and China-EU relations to higher levels, he added. For her part, Merkel said that Germany attaches importance to the economic and social development plan made in China's "two sessions," and stands ready to work with China to promote work and production resumption without compromising outbreak control and continuously deepen bilateral economic cooperation. Germany highly appreciates the announcement made by Xi that China's COVID-19 vaccine will be made a global public good, she said, adding that under current circumstances, to enhance international solidarity and multilateralism is crucial to the global fight against the pandemic. The chancellor said Germany is willing to strengthen exchanges with China and continue to support the WHO playing its important role, so as to promote international public health security cooperation. Germany, she added, hopes to maintain dialogue with China and boost cooperation as regards a broad range of fields and issues, and also stands ready to keep close communication with China to materialize the important events on the Germany-China and EU-China agenda and push for higher-level development of Germany-China and EU-China ties. ^ top ^

China denounces U.S. visa restrictions on Chinese students (Xinhua)
2020-06-02
The U.S. visa restriction on Chinese students and researchers severely undermined their legitimate rights and interests, Foreign Ministry spokesperson Zhao Lijian said on Tuesday. The U.S. side's latest action under an abused concept of national security and flimsy excuses "runs counter to the common aspiration for friendly people-to-people, especially youth-to-youth exchange," as Chinese students and researchers have been an important bond of friendship and bridge for scientific and educational exchange between Chinese and American people, Zhao said. He made the remarks at a press briefing in response to U.S. Secretary of State Mike Pompeo's statement on Monday, in which he said the U.S. side would not tolerate China's attempts to illegally acquire technology and intellectual property from U.S. academic institutions and research facilities for Chinese military ends. "Mr. Pompeo is used to weaving lies as excuses for his wrongdoing, and his statement on this issue is no exception," Zhao said. "Taking a backward step like this will only bring harm to oneself and others," he said. ^ top ^

China unveils plan to make Hainan a free trade hub like Hong Kong, Singapore as risks of US decoupling loom (SCMP)
2020-06-03
China has unveiled a package of special policies for Hainan, including scrapping import duties, in an effort to turn the tropical island into the mainland's answer to Hong Kong or Singapore and dampen the risk of decoupling with the United States. Beijing on Monday outlined its plan to make the 35,000 sq km island a "free trade port" by lowering the income tax rate for selected individuals and companies to 15 per cent, and relaxing visa requirements for tourists and business travellers. The island province of 9.5 million people will also enjoy freedoms in terms of trade, investment, capital flows and the movement of people and data by 2035, as it moves toward becoming a hub of "strong international influence" by the middle of the century. The project to make Hainan, which covers an area 30 times that of Hong Kong, into a regional trade, shopping and shipping centre has been "planned, arranged and promoted by General Secretary Xi Jinping personally", according to the government statement. Xi announced in April 2018 that the island, a popular holiday destination sometimes referred to as China's Hawaii, would be made into the nation's largest free-trade zone. The Hainan government has sent delegations to Hong Kong, Singapore and Dubai to learn "free trade" practices. The detailed blueprint has been released as the threat of decoupling between the US and Chinese economies grows, with tensions between the two nations escalating on multiple fronts beyond trade. The US said it planned to strip Hong Kong of its special trade status last week after Beijing moved ahead with a plan to impose a new national security law on the financial hub. The removal of the designation could mean Hong Kong's exports will be subject to the same US tariffs as the mainland and threaten the city's port status and re-export businesses, which have benefited from low duties in trading with the US. While there is no mention of Hong Kong or Singapore, it is clear Beijing is looking to replicate some of the policies that have made the cities successful, including an income tax rate capped at 15 per cent that is far lower than the mainland and closer to the 17 per cent level in Hong Kong. Under the new plan for Hainan, some imported goods will be tariff free, including manufacturing equipment, vehicles, ships, aeroplanes, raw materials and consumer goods. Chinese citizens will be able to spend as much as 100,000 yuan (US$14,000) per person every year at duty-free shops on the island, up from 30,000 yuan currently. China will build a "second customs line" for products transported from Hainan to the mainland, with goods that have had 30 per cent value added on the island allowed to enter duty free. Investment approval will also be simplified in the province. In certain areas companies will not need to obtain government approval as long as they make promises to abide by regulations before operations begin. Foreign nationals will be able to serve as legal representatives for state-owned enterprises, which is not allowed in the mainland, while tourists arriving on international cruise ships will be allowed to visit the island for up to 15 days without a visa. The scope of the proposed policies for Hainan goes much further than Beijing's existing measures for other "free trade zones" in Shenzhen or Shanghai. At the same time, the policies do not include any loosening of China's capital account and information flow controls, the pillars of a true free trade hub. Steve Tsang, director of the SOAS China Institute at the University of London's School of Oriental and African Studies, said Xi's plan for Hainan may be thwarted by a hostile international environment and a lack of rule of law on the island. "Hainan can achieve a lot of what it sets out to do … [but] not make itself into a second Hong Kong," he said. "It does not have what makes Hong Kong what it is. "The international backlash against aggressive Chinese propaganda … will not help Hainan to get a good start either." China's former paramount leader Deng Xiaoping elevated Hainan to a stand-alone province in 1988 and made it China's largest "special economic zone" in the hope that the sleepy island could repeat some of the successes of Shenzhen, which turned from a small fishing village into a booming hi-tech hub. The island was supposed to become an example for Taiwan that prosperity could be guaranteed if it chose to reunite with the mainland. But instead of becoming a model of development, Hainan quickly turned into a haven for smugglers and property speculators in the early 1990s. The burst of Hainan's property bubble is remembered as one of the biggest economic fiascos for Beijing since Deng's reform began in the late 1970s. Even today, the main economic driver for the province is providing winter homes for mainlanders looking to escape the cold of the North. Hainan's gross domestic product was just 530 billion yuan last year, or 0.5 per cent of the national total, according to the provincial statistics agency. The province's share of overall trade was less than 0.3 per cent in 2019. The island's governments have also traditionally failed to perform. The province's fiscal revenue in 2019 was about a seventh of Shenzhen's, while residents are poorer than their mainland compatriots – the average per capita income in Hainan was 10 per cent lower than the national average. A large portion of the policy document is dedicated to avoiding public health and environmental risks associated with the slated boost in trade and investment. The import of solid waste has been banned and the Hainan government has been told to balance a more open investment environment with preventing national security risks by carrying out security checks on foreign investors. One obvious omission in the 14,000-word document is mention of horse racing. There was speculation that Beijing might allow Hainan to establish a racing and gambling industry that rivalled Hong Kong and Macau Instead, it says that the administration of the island will continue to follow "socialist values". ^ top ^

Diplomatic, military communication channels between China and India on border issue unimpeded: Chinese FM (Global Times)
2020-06-01
China's Foreign Ministry on Monday stressed that the situation on the China-India border is stable and controllable, and diplomatic and military channels of communication between the two sides are unimpeded, in response to Indian Defense Minister Rajnath Singh's comments assuring the country that the government will not allow India's dignity to be hurt under any circumstances. China has seriously implemented the important consensus reached by the leaders of the two countries on the border issue, strictly abided by the agreements signed by the two countries, and is committed to safeguarding the national sovereignty and security of the country and maintaining peace and stability in the border area between China and India, Chinese Foreign Ministry spokesperson Zhao Lijian said at a routine press conference. Zhao said China believes the two sides can properly resolve the problem through dialogue and negotiations. Border incidents have recently occurred between troops from China and India. Chinese border defense troops have bolstered border control measures and made necessary moves in response to India's recent, illegal construction of defense facilities across the border in Chinese territory in the Galwan Valley region in May. Indian media reports said China recently deployed 5,000 more troops to the border area with India, and diplomats from the two countries have started talks on reaching a peaceful resolution. The Chinese border defense troops are devoted to safeguarding peace and stability in the border regions, and that the overall situation along China-India border was stable and under control, said Chinese Defense Ministry spokesperson Ren Guoqiang at a regular press conference on Friday. ^ top ^

 

Domestic Policy

Zhejiang releases safety QR code for natural disasters (Global Times)
2020-06-04
Authorities in East China's Zhejiang Province are encouraging local residents to use a new safety QR code and get their information registered in order to allow for better transmission of information during typhoon or flood situations. If residents tap the green button for "I'm safe!" via the safety QR code, the emergency department will know they are okay during a natural disaster. The health QR code has played an active role amid the COVID-19 epidemic and now the emergency authorities in Zhejiang believe it could help amid natural disasters. Zhejiang Province is a region that regularly suffers from typhoons and floods. Last year, at least 32 people died and 16 went missing after super typhoon Lekima made landfall in the province in August. To make sure the QR code can function properly before the rainy season comes this year, local officials are racing against time to collect basic information from local residents and put it into the system, including their names, ID and phone numbers before June 15. The QR code will apply to those who may be potentially affected by mountain flood disasters, those living in areas with a risk of geological disaster or in dangerous houses in urban and rural areas and marine aquaculture practitioners. Chen Junping, deputy head of the emergency management bureau in Qingtian county, told the Global Times the local government is busy registering the personal information of targeted residents and notifying them about the usage of the QR code. "When people scan the QR code, the emergency department will acquire their location and safety situation. The QR code will mean that residents in danger during natural disasters won't be missed," Chen said. He said Qingtian county will probably register about 2,000 people in this system who may be exposed to danger from natural disaster. When there is a typhoon or flood, affected residents will have to report their safety via the QR code, including whether they are in shelters, safe with their relatives or are stranded somewhere. The QR code will be mandatory for these targeted people, according to Chen. Most residents welcome the QR code since it will offer them timely help when they are in danger, Chen said. Southern China enters its heavy rainfall week from Monday, which will see heavy rain almost every day, especially Jiangxi, Hunan and six other provinces and regions, according to the Central Meteorological Observatory. Gao Jianguo, a member of the National Disaster Reduction Committee, told the Global Times that safety QR codes can be promoted in other regions where natural disasters frequently happen, such as Fujian Province and Guizhou Province. ^ top ^

Xi Jinping vows to build strong public health system to ensure China's stability (SCMP)
2020-06-05
Chinese President Xi Jinping has vowed to build a strong public health system, saying it is crucial to China's development strategy and national security. Xi made the commitment in a high-profile speech at the Great Hall of the People in Beijing on Tuesday in a closed-door meeting with a number of top medical and public health experts, including respiratory specialist Zhong Nanshan. It is common practice for the Communist Party leaders to use meetings with experts to highlight policy and political priorities, and the gathering in Beijing has featured on state broadcaster CCTV's prime time news for three days in a row. At the meeting, Xi has pledged to pour resources to create a public health network linking central and local governments, disease control and prevention agencies, laboratories, hospitals and grass-roots health institutes, as well as public health schools to ensure quick identification and responses to outbreaks of new infectious diseases. He also ordered better coordination and discipline to plug the technical loopholes. "The safety of people is the cornerstone of national security … A disease prevention system is … important to ensure economic and social stability," state news agency Xinhua reported, summarising Xi's speech. It is the latest in a string of statements by Xi to showcase his leadership in overhauling China's health system in the wake of the coronavirus pandemic, which has killed 380,000 worldwide. Steve Tsang, director of the SOAS China Institute in London, said it was telling for Xi to link the public health system to national security. "In January and February the party-state and Xi's own leadership faced a severe test of credibility and for a while it did not look good for either," Tsang said. "So, there is a recognition on his part that something like the Covid-19 pandemic must not be allowed to destabilise the leadership, particularly his leadership," he said, referring to the disease caused by the coronavirus. On February 15, the party journal Qiushi published a speech Xi reportedly delivered on February 3, in which he said he told the party's most powerful body, the Politburo Standing Committee, on January 7 to tackle an outbreak of a previously unknown coronavirus. The speech did not indicate what Xi's instructions were and whether he was aware of the human-to-human transmission of the novel coronavirus. China only declared there was sustainable human-to-human transmission on January 20. Since the speech was published, Xi has made several high-profile addresses on strengthening the public health system, with the most recent offering details on action. "A stable investment mechanism in the health care system has to be set up to improve the infrastructure of the disease control and prevention system," he said. Centres for disease control and hospitals should also "set up a mechanism to share information, resources and to supervise each other" while a number of top-grade public health schools should be established to foster expertise in pathogen research, epidemiology and laboratory tests. But analysts said that China invested heavily in health and overhauled its disease control system in the two decades after the outbreak of severe acute respiratory syndrome, or Sars, and it still failed to stop the novel coronavirus from infecting tens of thousands in China. Drew Thompson, a visiting senior research fellow at the Lee Kuan Yew School of Public Policy at the National University of Singapore, said he was not convinced that more funding would fix problems in China's health system. "After the 2003 Sars outbreak revealed significant problems with its public health care system, China poured billions of dollars into it, including sizeable funding and support from the US, EU, Japan, Australia, UK, World Bank, and Global Fund to Fight Aids, Tuberculosis and Malaria," Thompson said. "So I am sceptical that committing additional resources alone will prevent a repeat of the tragedy in Wuhan from reoccurring, since billions were already spent to prevent the tragedy of Sars from reoccurring." Yanzhong Huang, a senior fellow for global health at the Council on Foreign Relations in Washington, said the cause of the problem could not be addressed just by investment or plugging technical loopholes. "China's post-Sars investment in its disease surveillance and response capacities has indeed paid off, as shown in its ability to complete the genome sequence of Covid-19 in a very short period of time. Further investment in this area would help fix the loopholes in the public health system," Huang said. "But the marginal benefits of doing so will eventually fall. As both the Sars and Covid-19 outbreaks have shown, the cause of the problem is cover-up and inaction, especially at the local level, which is primarily driven by political and institutional factors." He said it was important to improve public governance if China wanted to succeed in building an effective way to prevent disease. "It is also important for the government to allow social forces [such as] the media, netizens and NGOs to be actively involved in public health governance. Whistle-blowers should be encouraged, not punished. "A top-down state-dominated public health governance will not be effective in the absence of the cooperation of the society and free flow of information." ^ top ^

Chinese premier stresses expanding employment channels for graduates (Xinhua)
2020-06-04
Chinese Premier Li Keqiang on Wednesday emphasized efforts to expand market-based employment channels and try every possible means to stabilize the overall employment situation for college graduates. In a written instruction to a teleconference held in Beijing, Li, also a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, noted college graduates are facing grim employment prospects due to the impact of the COVID-19 epidemic. All regions and departments are asked to strengthen the employment-first policy in a comprehensive way, boost employment for college graduates with solid and meticulous measures and promptly carry out initiatives to keep businesses and employment stable. Li underscored the need to promote the greater development of new industries and new forms of business to build a broader platform for college graduates to start their own businesses or seek flexible employment. More support should be given to graduates who are from regions hit hard by COVID-19 or have difficulty finding jobs, he said. Vice premiers Sun Chunlan and Hu Chunhua, who are both members of the Political Bureau of the CPC Central Committee, attended the meeting and delivered speeches. The meeting stressed that state-owned enterprises and public institutions are encouraged to significantly increase their posts for university graduates. It also called for further support for needy graduates such as those from central China's Hubei Province, previously severely affected by the COVID-19 epidemic, and impoverished families. The meeting called for efforts to support innovation and business startups through tax and fee cuts as well as loans and subsidies, among other policies. It also noted the need for solving structural employment problems by advancing supply-side reforms of university education and promoting vocational education. ^ top ^

Tiananmen exile Han Dongfang says commemoration is a 'matter for the heart' (SCMP)
2020-06-04
For Han Dongfang, a labour rights activist who was on Beijing's most wanted list after the 1989 Tiananmen crackdown, this year's June 4 commemoration will be very different from the ones he has attended since making Hong Kong his home 27 years ago. Han has taken part in the candlelight vigil at Victoria Park almost every year since 1993, missing the occasion only if he was travelling. The public commemoration has been seen by many as a symbol of how "one country, two systems" is practised in Hong Kong, because such a gathering would not be possible in any mainland city. Thursday will be the first time since 1989 when no officially permitted candlelight vigil will take place in Victoria Park. The application by the Hong Kong Alliance in Support of Patriotic Movements of China was turned down by the police, citing the coronavirus. The alliance said it still planned to observe a moment of silence at the park, in Hong Kong's Causeway Bay district, and urged the public to join an online gathering and light candles across the city. The government has extended the ban on public gatherings due to the Covid-19 pandemic until June 18, and groups of more than eight people are not permitted. However, many Hong Kong residents are pessimistic over whether public commemoration of June 4 will be allowed in coming years, once the new national security law is introduced. The law is expected to be promulgated by the National People's Congress in coming months and imposed on Hong Kong as part of Annex III of the Basic Law. Beijing has said the national security law is intended to "prevent, stop and punish" threats to national security by outlawing acts and activities of secession, subversion, terrorism and foreign interference in the city's affairs. Han said he had not been too concerned in the past about the format of the June 4 commemoration, because it was "a matter of the heart" but how to commemorate the date this year had become more important. "The candlelight vigil in Victoria Park is an iconic event. A memory for Hong Kong people … "In the past, it was a norm to have the vigil every year. But when it cannot be held, it has become even more special. Since we don't have the vigil, suddenly the format of commemoration becomes important … This year I care about how I commemorate it … I think it is in human nature, when you don't let people do something, suddenly they cherish it." Han said he planned to "take a walk for fresh air" in Victoria Park with his child on Thursday night. He said he was not sure if more people would turn out in the park because of the pandemic. He added that many of the city's young people had lost interest in June 4 because they did not want to relate themselves with mainland China. Han, 57, is the most prominent of the Tiananmen Square dissidents still living in Hong Kong. Others are in exile in other countries, mostly the US, while some are on the mainland. Other high-profile figures in the student movement of 31 years ago have died. Han, a railway worker, was an unofficial union leader in the movement who turned himself in after the crackdown and was jailed for 22 months. He contracted tuberculosis while in prison and was released in April 1991 for medical treatment in the US. He was arrested again in 1993 on his return to Guangzhou in southern China. Han was then expelled to Hong Kong, where he set up an NGO to monitor labour rights on the mainland which continues to this day. While the scope of the national security law and how it will be applied remains unknown, Han said his work with the NGO – which has exposed China's labour rights problems – would not make his situation any more dangerous than for other Hong Kong people. The law would be like a "sword of Damocles" hanging over the heads of people in Hong Kong, he said. "If you look at how the mainland treats lawyers, migrant workers, and petitioners, you know this system can target anyone in the name of national security and it can do whatever it wants. "This kind of thing may not happen to you, but it may. You don't know when the sword will fall, and that is what makes it terrifying," he said. But Han said he had no plans to leave Hong Kong. "It was by coincidence that I have stayed in Hong Kong. I returned to the mainland and I was [expelled] and I have to stay here. For me, I am always on my way back to the mainland." Han said whether a candlelight vigil was officially permitted next year would not change what had happened in the past and that what people believed in their hearts mattered more than how the commemoration was held. "If there is no vigil next year, would it change the fact that June 4 has taken place? Would it change the fact that the shooting of innocent people occurred?" Han cited the pivotal example of the decision by the Communist Party in 1978 to acknowledge the mistakes made during the Cultural Revolution which had allowed the country to move forward. Only by acknowledging what had happened, instead of suppressing commemorations of June 4, could there be a new chapter for the nation, he said. "You cannot obtain more power and authority by gagging people." ^ top ^

Chinese Premier stresses providing relief to businesses, stimulating market vitality (Xinhua)
2020-06-02
Chinese Premier Li Keqiang has stressed the importance of providing relief to businesses and stimulating market vitality during his inspection tour of east China's Shandong Province from Monday to Tuesday. Li, who prioritizes small- and micro-sized enterprises, urged related authorities to properly address the issue of allowing companies to use their intellectual property to secure loans and cut down their financing costs. The premier called for more ways to increasing credit lines for small and micro businesses to help them solve financing problems. He also encouraged banks to make appropriate interest concessions, so that businesses can sustain themselves and assure success for the future, which will also benefit banks' development. Noting that the number of college graduates will increase to record numbers this year, Li said he hopes companies can recruit more college graduates, adding that the central government will also provide support. In his visit to an old residential community in the city of Yantai, the premier said the renovation of such communities can improve people's living conditions and drive up consumption of home decoration and home appliances. He encouraged social capital to take part in such projects and called for an accelerated pace in renovation. In front of a grocery store, a stallholder told Li that they all welcome the new policy of allowing them to set up stands as long as traffic is not affected. Li said that if everyone works hard, businesses will survive and grow stronger, and the country will create more space for their development. After watching a slew of smart products developed by the Haier Group, a leading manufacturer of household appliances, Li encouraged its employees to continue to innovate and asked related government departments to work out reform plans to promote the development of new forms of businesses and create more jobs. He urged efforts to keep the fundamentals of the economy stable and unfailingly meet the basic living needs of the people. ^ top ^

China Focus: China to launch Mars probe between July, August (Xinhua)
2020-06-02
China plans to launch its first Mars probe between July and August this year, aiming to complete orbiting, landing and roving in one mission, an expert said in a recent interview with the state broadcaster CCTV. After the launch via China's largest carrier rocket Long March-5, the probe is expected to reach within the gravitational field of Mars next February and it will be captured into orbit around the planet, said Bao Weimin, an academic with the Chinese Academy of Sciences. He is also the director of the Committee of Science and Technology under the China Aerospace Science and Technology Corporation. According to Bao, China's Mars probe consists of an orbiter as well as a lander and a rover. The lander and rover will make a soft landing on the surface. The Mars rover, which is expected to work on Mars for at least 90 Mars days (more than three months on Earth), will carry out patrol exploration and research on geomorphic landforms of Mars. A safe landing on Mars is the most difficult and risky part of the mission, and the lander carrying the rover will be slowed down through four steps, Bao noted. The first step, which will last for about 290 seconds, is akin to breaking, slowing down its speed from 4.8 km per second to 460 meters per second. Next, a parachute will be opened and it will take about 90 seconds to lower the speed from 460 meters per second to 95 meters per second. A reverse thrust engine will then be ignited, decelerating the speed to 3.6 meters per second in about 80 seconds. After the first three steps, the lander carrying the rover will be about 100 meters above the Mars surface. Hovering in the air, it can observe the surface, adjust its position and select a safe spot to land in an obstacle-avoiding mode. The whole landing process will take about seven to eight minutes, said Bao. Last November, China successfully mounted an experiment simulating the process of a probe hovering, avoiding obstacles and descending to land on Mars. In April China announced that its first Mars exploration mission was named Tianwen-1. The name comes from the long poem "Tianwen," meaning Questions to Heaven, written by Qu Yuan (about 340-278 BC), one of the greatest poets of ancient China. ^ top ^

Civil code defines, bans sexual harassment (China Daily)
2020-06-01
Having spent more than 10 years providing legal services to people dealing with sexual harassment, lawyer Lyu Xiaoquan received some good news at the end of April-he learned that such harassment would be officially banned and a definition would be included in China's first civil code. "The code will not only clarify the ban on sexual harassment, especially in the case of unequal relationships-such as those between teachers and students or bosses and subordinates-but will also provide a definition of sexual harassment for the first time in China's legal framework," said Lyu, who works for the Beijing Qianqian Law Firm. The code, adopted by the National People's Congress, the top legislative body, on Thursday, stipulates that sexual harassment by word or deed, or by taking advantage of a position of power, will be subject to civil action if the alleged perpetrator is sued by the victim. It also lists government agencies, businesses and schools as responsible agents that must take measures to prevent sexual harassment and be able to receive reports and investigate alleged cases, especially in unequal relationships. "It's a sign of progress that the fundamental civil law is backing sexual harassment victims. It underlines the country's determination to act against such misconduct, which has occurred frequently in recent years and become the subject of a large number of complaints," Lyu said. On April 20, a month before the plenary session of the NPC, the education bureau in Guanghan, Sichuan province, issued a statement saying it had been working with other authorities to investigate a middle school teacher, surnamed Chen, who some students claimed had sexually harassed girls. The report, which was published online, claimed that Chen had held the girls' hands, patted their heads, and even groped their breasts after calling them into an empty classroom, according to Red Star News. Xu Hao, a lawyer from the Beijing Jingshi Law Firm, said: "Campuses and offices are the places where sexual harassment is prevalent, and much of this misconduct happens between people who know one another. Sexual harassment in such places causes physical and mental damage because unequal relationships often make it difficult to speak out, so victims are forced to tolerate it." He praised the definition included in the civil code. "It means sexual misconduct will be caught and punished, not only by criminal law, but also civil law," he said. "In other words, legal protection for people being sexually harassed has become stronger and more comprehensive." Lyu said growing legal awareness among the younger generation means "more victims stand up and say 'no' to sexual harassers. That must be encouraged." He believes the civil code will provide more support for the drive to protect people's rights by rule of law. However, both lawyers expressed concern about enforcement and the effectiveness of the code. "Collecting evidence in civil disputes related to sexual conduct will be much harder than in similar criminal cases," Xu said. ^ top ^

Wuhan reports zero COVID-19 asymptomatic patients for first time (Global Times)
2020-06-01
Health authorities in Wuhan, Central China's Hubei Province reported zero new cases of COVID-19 silent carriers on Monday for the first time since the city started publishing asymptomatic cases. According to a notice from the Wuhan Health Commission, the city tested more than 60,000 residents on Sunday for asymptomatic infection, and all tested negative. The result shows that the concentrated nucleic acid testing and screening work in the city has made significant progress, said the notice. According to the Wuhan Health Commission, more than 9 million residents have been tested as of May 24 since the launch of centralized nucleic acid testing in Wuhan on May 15, completing more than 90 percent of the whole city's sampling work. As of Monday, more than 300 silent carriers are currently under medical observation at local hospitals. The city announced on May 25 it would test residents who were missed in the citywide testing for COVID-19 rolled out in mid-May. People who were missed out in the citywide testing are mainly the elderly, disabled, people who have been out of the city and other people with special circumstances, noted Yang Zhanqiu, deputy director of the pathogen biology department at Wuhan University. They were required to register with their communities and the local government would arrange for them to be tested on a designated date, according to local authorities. Lu Yuechen, a Beijing-based software engineer who went to Wuhan on May 13 for a business trip, told the Global Times on Monday that he was required to take the nucleic acid test by his residential community on Friday because he missed the previous citywide test. "I was not very serious about the citywide test and thought I could skip it as I was just on a business trip. But later I was told that I was also counted into the missed group and was required to go and take the test even though I just stayed in the city for a short time," Liu said. He said there were around 200 people who took the test with him at a designated test center in Hongshan district on Friday afternoon. A Wuhan resident, surnamed Jin, who lives in Hanyang district told the Global Times that her residential community has been posting announcements on WeChat recently to urge those who have not yet taken the test to get registered. "The goal is to get tested and to screen out all silent carriers. I can see how determined the city is in this citywide testing campaign and I really appreciate that," she said. As the city's screening scope for the testing further expands, many people whose registered permanent residence is in Wuhan but who currently live in other cities also noted that they have received calls from their home community to check if they have taken the tests. ^ top ^

 

Beijing

Beijing eyes infectious disease regulations (Global Times)
2020-06-04
Beijing plans to formulate or revise 20 regulations to strengthen its public health system amid the COVIOD-19 epidemic, including measures on infectious disease prevention and control and public health emergency response. The plan was announced at a meeting of the Standing Committee of Beijing Municipal People's Congress on Thursday. Regulations on hospital management, traditional Chinese medicine (TCM), experimental animal management, as well as wildlife protection regulations are also included in the 20 regulations scheduled to be enacted or revised by the end of next year. "The congress has been strengthening efforts to improve the city's public health system since the epidemic outbreak, especially on emergency response and epidemic prevention and control," Wei Aimin, a deputy of Beijing Municipal People's Congress, told the Global Times on Thursday. Wei noted that though the workload seems heavy for the city's lawmakers, the task will be completed in good quality as the city has been mobilizing lawmakers from towns, districts and the city to close the loopholes of the health legal system with joint efforts. More than 590 confirmed COVID-19 cases were reported in Beijing since the outbreak, with the last case reported on April 15. It is of great significance for the capital city of China to prevent and control epidemics in a scientific and orderly manner in accordance with the law," said Wang Rongmei, director of the legislative affairs office of the Standing Committee of Beijing Municipal People's Congress, who reported on the plan at the meeting. Wei, who is also the director of the Beijing Huxian law firm, made a few proposals on public health emergency response regulations, such as establishing a multi-level epidemic prevention materials reserve system, ensuring the sufficiency of supplies for the government, enterprises and individuals to respond to the emergency. He also recommended strengthening education of infectious disease prevention and treatment for medical workers and volunteers as controlling an epidemic is a long-term and tough task that needs substantial professional work, which can be seen in the recently-eased COVID-19 outbreak. The Beijing authority recently solicited public feedback on draft regulations on the TCM industry, but faced controversy as one of the clauses said people will be punished if they smear or slander TCMs. The authority clarified with the media Thursday that the clause is not final and they may revise or delete related clauses in response to the controversy. ^ top ^

Woman arrested for hiding health condition on flight to Beijing (China Daily)
2020-06-02
A woman surnamed Li who hid her health condition from flight crew and tested positive for COVD-19 after arriving in Beijing on a flight from the US in March has been detained for allegedly hindering infectious disease prevention, the Beijing People's Procuratorate said on Tuesday. It said prosecutors in the capital's Shunyi district approved her arrest on Monday, adding that prosecutors throughout the city will continue the fight against those who hinder efforts to contain the COVID-19 pandemic in order to offer stronger legal protection for people's health and safety. Li spent a long time in the United States with her family. She saw doctor several times after she got a fever on March 1, but did not get better. During that period, some of her colleagues were identified as having been infected with the novel coronavirus, the Beijing People's Procuratorate said in a statement. On March 11, Li went to hospital in US to have a novel coronavirus test, but she flew back to China with her husband and son without getting the result, it said. Before boarding their flight, Li took anti-fever medicines, and she did not tell flight crew the truth about the family's health condition, the procuratorate said. Li was identified as a confirmed case of COVID-19 on March 13, when she arrived in Beijing, causing more than 60 other people who had been in close contact with her to be quarantined. Three days later, Li's husband also tested positive. Since March 23, international flights to Beijing have been required to first land in one of 12 other airports across the country, where passengers are screened for COVID-19, to help prevent imported cases in the capital. ^ top ^

Vice premier inspects school resumption in Beijing (Xinhua)
2020-06-02
Chinese Vice Premier Sun Chunlan has stressed the importance of applying anti-COVID-19 measures amid the reopening of schools across the country. She made the comments on Monday as she conducted inspection visits to a secondary school, a primary school, and a kindergarten in Beijing. Sun visited children who had returned to school, extending her greetings to them on International Children's Day. At the same time, she inspected measures to prevent and control COVID-19 in the schools. Various educational institutions are resuming operations in an orderly manner across the country, Sun said, noting that measures, including ventilation and disinfection, must be strictly implemented to ensure safety. Stressing the issue of emergency response, Sun asked schools to conduct the necessary drills and set up ties with hospitals to swiftly deal with emergencies. She also called for support for privately run kindergartens, as well as more care for the psychological health of students. Parents should keep in close contact with schools and teachers, Sun said, calling for efforts to strengthen health education and help children develop good health habits. ^ top ^

 

Shanghai

German business travelers scheduled to arrive in Shanghai Thursday, amid China's gradual resumption of economic activities (Global Times)
2020-06-03
All the passengers landing at Shanghai Pudong International Airport from abroad are required to take a closed-loop 14-day quarantine upon their arrival, including the German business travelers, the airport said on Wednesday. When international flights arrive at Shanghai Pudong International Airport, all of the passengers will accept the closed-loop management in order to prevent imported coronavirus cases from abroad and must take a 14-day quarantine, the airport told the Global Times on Wednesday. Responding to whether the German business personnel on a flight that will be arriving on Thursday will be quarantined for 48 hours through a "fast track" entry system, the airport "has no information." The boundary checkpoint of Shanghai also confirmed to the Global Times that all of the inbound passengers are required to take a 14-day quarantine. A chartered repatriation flight by Lufthansa Airlines carrying some 200 German business travelers from Frankfurt is scheduled to arrive in Shanghai on Thursday at 11:10am (local time), the second chartered flight taking German managers, workers and family members back to their workplaces in China. However, a passenger on the first chartered flight from Germany to China carrying some 200 German passengers tested positive for coronavirus after arriving in North China's Tianjin although he did not show any symptoms. A person with knowledge of the matter told the Global Times that the forthcoming 200 passengers will take the COVID-19 nucleic acid test once they get off the flight in Shanghai, and will be under closed-loop management. An anonymous source close to the Shanghai health authority told GT that the German businessmen could enjoy flexibility during the quarantine period once their application to go through the "fast track" channel is approved. For example, they are allowed to go to their workplace first, but once the work is finished, they must take the quarantine and all the process in closed-loop management. Jointly arranged by the German Chamber of Commerce in China, German diplomatic missions in China, and Lufthansa airlines, the two flights are the first repatriation flights of foreign nationals from Europe to return to China after the country contained the coronavirus outbreak amid a gradual resumption of economic activities. There are more than 5,000 German companies seeking growth in China and about 60 percent of them are located in Shanghai. Jens Hildebrandt, executive director of the German Chamber of Commerce in North China, told the Global Times previously that there should be a 48-hour quarantine after German passengers' arrival in China. ^ top ^

 

Tibet

PLA Tibet military command holds nighttime high-altitude drills (Global Times)
2020-06-02
The Chinese People's Liberation Army (PLA) Tibet Military Command recently sent troops to a high-altitude region at an elevation of 4,700 meters at night for infiltration exercises behind enemy lines and tested their combat capability under a harsh environment. At 1:00 am at an undisclosed date, a PLA scout unit began to mobilize toward its target in the Tanggula Mountains. During the march, vehicles turned off their lights and used night vision devices to avoid hostile drone reconnaissance, China Central Television (CCTV) reported on Monday. After encountering defensive obstacles built by the enemy, the scouts sent drones and dropped explosives to clear them. They engaged in combat when approaching the target, for which they sent a sniper unit to crack enemy spotlights and a fire strike team to destroy enemy light armored vehicles with anti-tank rockets. After neutralizing the defenses, the scout unit successfully launched the final assault on the enemy headquarters, in which commanders used a vehicle-mounted infrared reconnaissance system and guided the troops to lock in on targets and deliver fire strikes. More than 2,000 munitions, including mortar shells, rifle grenades and rockets were fired during the mock battle, Ma Qian, commander of the scout battalion involved in the drills, told CCTV. The exercises not only tested the results of the troops' training with newly commissioned equipment, but also placed them in an extremely complicated situation, Ma said. A retired PLA officer who was deployed in high altitude regions of Southwest China's Tibet Autonomous Region told the Global Times under condition of anonymity on Tuesday that nights in plateaus are very cold and the lack of oxygen at high elevations can cause problems for troops and hardware. Infiltrating behind enemy lines and launching an attack at a hostile command center at night can effectively win a small-scale conflict with only one battle, the veteran said, noting that the surprise factor would play a significant role. China and India share borders at the high altitude area, and incidents have recently occurred between the two countries' troops, and both sides reportedly reinforced deployments. China's Foreign Ministry on Monday stressed that the situation on the China-India border is stable and controllable, and diplomatic and military channels of communication between the two sides are unimpeded. ^ top ^

 

Xinjiang

Xinjiang vice chair probed for severe law violations (Global Times)
2020-06-02
Ren Hua, vice chairperson of the government of Xinjiang Uygur Autonomous Region, is being investigated for suspected serious violations of discipline and law, China's top anti-graft body said on Monday. The investigation is being carried out by the Communist Party of China Central Commission for Discipline Inspection and the National Supervisory Commission. Ren, a female of Han ethnicity, was born in East China's Shandong Province in 1964. She holds the bachelor's degree in Chinese language and literature from Xinjiang University, and joined the Communist Party of China in November 1984. Her resume showed that she spent her entire career in Xinjiang. After graduating in 1986, Ren served as a cadre of the secretariat department of the general office of the Party committee of Xinjiang until March of 1987. She was transferred to the information division of the general office of the Xinjiang regional Party committee in March 1987 and served as division chief from September 2000 to February 2004. Ren became vice head of the publicity department of the Party committee of Xinjiang between August 2017 and January 2018. Ren has been the vice chairperson of the Xinjiang Uygur Autonomous Region government since January 2018. She concurrently serves as vice head of the publicity department of the Party committee of Xinjiang. ^ top ^

Xinjiang 'fasting ban' sheer nonsense made up by overseas separatists: senior official (Global Times)
2020-06-01
The so-called fasting ban during Ramadan is "sheer nonsense" and rumor, and was made up by "East Turkistan" forces abroad with the purpose of sowing discord among ethnic groups, disrupting ethnic relations and inciting ethnic antagonism, a senior official from Northwest China's Xinjiang Uygur Autonomous Region told a press conference on Monday. Some overseas separatists and anti-China organizations claimed that Xinjiang had banned Muslims from fasting during Ramadan. The World Uyghur Congress, a US-backed network that seeks the fall of the Chinese government, released a series of video clips alleging Uygurs in Xinjiang "are subject to persecution in Ramadan." Mehmut Wusman, director of the Xinjiang Regional Ethnic Affairs Commission, told a press conference on Monday that the fasting ban allegations were made by "East Turkistan" forces abroad and are sheer nonsense. Every Ramadan, they make and spread such rumors, which have been debunked, and only seek to attack Xinjiang. The so-called "persecution videos of Uygurs in the month of fasting" released by the WUC are nothing but a patchwork of falsehoods, intending to sow discord among our ethnic groups, disrupt the ethnic relationship and incite ethnic antagonism. The intentions they harbor are extremely vicious, Mehmut said. The official noted that Xinjiang fully implements the policy of freedom of religious belief. Religious believers and non-believers enjoy equal rights politically, economically, culturally and in social life. Believing or not believing in a religion is every citizen's independent choice. "Believers' legal religious activities either performed at religious venues or at home according to habitual practice, such as prayers, fasting, and religious festivities, are managed by religious groups or believers themselves and protected by law, allowing no interference by any organization or individual," he said. ^ top ^

 

Hongkong

Hong Kong legislature passes national anthem bill (Xinhua)
2020-06-05
The Legislative Council (LegCo) of China's Hong Kong Special Administrative Region (HKSAR) approved the national anthem bill at the third reading debate on Thursday afternoon. The bill was passed with the support of 41 lawmakers and one voting against. The legislative meeting starting in the morning was once suspended for four hours because of the obstruction of opposition lawmakers, who repeatedly committed disruptive acts, even pouring foul-smelling liquid on the floor. Given the chaos, LegCo President Andrew Leung Kwan-yuen put the bill to a vote shortly after the meeting resumed in the afternoon. During a press briefing after the meeting, Leung said the disruptive acts were extremely irresponsible and strongly condemned the lawmakers involved. HKSAR Chief Executive Carrie Lam expressed support for Leung's decisive action in her post on social media on Thursday night and stressed that the disorders during the national anthem legislation proved that it is impossible for the LegCo to pass the national security law in the foreseeable future. Hong Kong can not tolerate intensifying violence, rising national security risks and continued social unrest, Lam said, noting that the decision of the national legislature to make national security laws for Hong Kong responded to the public appeal for stability. Secretary for Constitutional and Mainland Affairs of the HKSAR government Erick Tsang Kwok-wai said the national anthem law will take effect on June 12, urging residents to respect the national anthem and not to commit insulting acts. The legislation began in 2018 but was postponed for about a year due to violent incidents and riots last year and the filibuster by opposition lawmakers in the LegCo's House Committee. China's National Anthem Law came into force in the mainland in 2017 and then the Standing Committee of the 12th National People's Congress adopted the decision to add the law to Annex III to the HKSAR Basic Law. In accordance with Article 18 of the Basic Law, the national laws listed in Annex III to the Basic Law shall be applied locally by way of promulgation or legislation by the HKSAR. ^ top ^

Tiananmen vigil in Hong Kong draws thousands despite coronavirus-related ban (SCMP)
2020-06-05
Thousands flooded Hong Kong's Victoria Park on Thursday night for the annual candlelight vigil to mark the anniversary of the 1989 Tiananmen Square crackdown, defying a ban on the mass gathering imposed by the police for the first time on health protection grounds. The show of defiance came on a politically charged day as the legislature passed a law criminalising disrespect for the national anthem, amid a raging controversy over China's top legislative body tailor-making a national security law for the city. Police, who had warned they had thousands of riot officers ready and would enforce anti-coronavirus rules limiting groups to a maximum of eight people each, stood back as the crowds poured into the park in Causeway Bay and took up a couple of football pitches. The peace was broken only in Mong Kok when protesters blocked Argyle Street and plain-clothes police officers used pepper spray and batons to stop them. Sources said at least four people were arrested. At Victoria Park, social-distancing rules were set aside as participants lit candles and torches in remembrance of the victims of the June 4 crackdown on China's pro-democracy protests, and shouted slogans challenging Beijing's authority. "End one-party rule!" and "Rectify the verdict on 1989 movement!" they chanted, drowning out police warnings that they were taking part in an unauthorised assembly as they poured into the park. They also ignored messages broadcast over loudspeakers that they could be spreading Covid-19. "Oppose national security law!" was another slogan that could be heard, along with "Free Hong Kong, revolution of our times!" and "Hong Kong independence!" The participants held up candles and lights as the vigil began at 8pm, and observed a minute's silence at 8.09pm to mourn those who died 31 years ago. Asked whether the organiser of the vigil would face arrest for the illegal gathering, a source said police would pursue the matter subject to the strength of evidence. "The force banned the vigil on health grounds amid the Covid-19 pandemic, but we also understand that the June 4 commemoration is a symbolic and historical event, and it has been peaceful in the past," another source said. "As long as it does not pose any threats to public safety and order, we will not need to send officers to handle it." A police spokesman said officers had taken enforcement action using minimal force only to prevent the road blockade in Mong Kok. In various parts of Tai Wai, Mong Kok and Causeway Bay, people were also seen waving flags or banners advocating Hong Kong independence, while shouting anti-government slogans. Titled "Candlelight in Every Corner of Hong Kong" by the organisers, this year's commemoration was also driven by concerns about the city's autonomy with the impending new law that would ban "acts and activities" deemed as endangering national security. It was also the first time in 30 years that the Alliance in Support of Patriotic Democratic Movements of China had been barred by the authorities from holding the annual event in Victoria Park. Alliance chairman Lee Cheuk-yan said the ban amounted to political suppression. "The people and students of China rose to fight for freedom and democracy. The Chinese Communist Party, in defending its dictatorship, answered with bloodshed," he said in a speech at the 45-minute event. Rejecting the government's assurances that the new national security law would not affect existing freedoms, he said: "This marks the end of 'one country, two systems' and the freedoms Hongkongers are entitled to enjoy." Households across the city were also encouraged to light candles if they could not attend the vigil. Earlier, at a street booth set up by organisers in Wong Tai Sin, Marco Yip, 14, picked up a candle and planned to light it alone in a public area. Yip said he wanted to join activities to remember the crackdown more after the anti-government protests last year and the arrival of the new law. "Maybe [Beijing] will suppress rallies and classify events like the June 4 vigil as inciting subversion of state power," he said. In Mong Kok, graduate Brenda Hui, 24, chose to join a smaller vigil with a friend, Jasmine He. They had marked an umbrella with the slogan, "never forget June 4". "I hope to merge the idea of the 'umbrella movement', a symbol of protest in Hong Kong in our era, with the message of 'never forget'," Hui said. Among the crowd at Victoria Park was Han Dongfang, a labour-rights activist who was on Beijing's most-wanted list after the 1989 crackdown. "Victoria Park is an important place. When there is a public gathering, I have to come," said Han, who was jailed for 22 months and released in 1991 for tuberculosis treatment in the US. He was caught again in 1993 on his return to Guangzhou and then expelled to Hong Kong. Hong Kong has been the only place on Chinese soil to hold a large-scale public gathering every year to mark the Tiananmen crackdown. But some now fear the iconic sea of lit candles, seen by the world every year on June 4, might not happen again next year, with Beijing's tightening grip over the city. Lee said as long as people refused to give up or forget, the annual commemoration would live on. "The most important is not the park, but the candlelight, and our determination. So long as we refuse to forget, there will be commemoration, no matter where we happen to be," he said. ^ top ^

Tiananmen vigil: thousands of Hong Kong police officers mobilised for banned June 4 events (SCMP)
2020-06-04
More than 3,000 riot officers will be deployed on Thursday to enforce a ban against the annual candlelight vigil to commemorate the anniversary of the 1989 Tiananmen Square crackdown and other public gatherings, according to police insiders. They said the ban was being officially enforced on health grounds, and those trying to circumvent the rules by splitting into smaller groups would still be breaking the law. The warning of a heavy police presence came as organisers of the June 4 mass rally at Victoria Park said they still planned to go regardless, in groups of eight, the limit for public gatherings for at least two more weeks under Covid-19 restrictions. "Police will observe and enforce the law as the situation requires," a high-ranking officer told the Post. Police sources said attempts to get around the law by meeting in groups of eight or fewer would fail if the total number of people gathering for a common purpose in a public place exceeded that figure. They said some 3,000 riot officers would be ready, with the legislature also expected to vote on the controversial national anthem bill, which would outlaw public and intentional insults to March of the Volunteers. About 2,000 of them would be deployed on Hong Kong Island, where two water cannons were to be stationed at the government headquarters in Admiralty and near Beijing's liaison office in Sai Ying Pun, the sources said. The remaining 1,000 officers would be based in other districts, such as Mong Kok, with another water cannon on standby in West Kowloon. The insiders said police would take proactive and swift action as they did last Wednesday, when thousands took to the streets to protest against Beijing's proposed national security law for Hong Kong and the national anthem bill. Many of the 396 arrested on that day for offences including unlawful assembly were held even before the protests had started. The sources said the force was unlikely to deploy this "high-handed" strategy to stop people from gathering in Victoria Park, although that depended on how events unfolded. One said this was because the threat to public order on Thursday was deemed "relatively moderate" – rather than the "high" level of risk ahead of the protests last Wednesday – as there were fewer online appeals for people to join demonstrations. "But it depends on the size of the crowd and circumstances developing on the site," he added. As well as heading to Victoria Park in small groups, the Hong Kong Alliance in Support of Patriotic Democratic Movements of China, which has organised the vigil since 1990, has asked people to join proceedings online and to light candles distributed from 100 street booths across the city. Organiser Lee Cheuk-yan said he expected police to issue them with fines for breaching the eight-person limit by factoring in other people around them. He said officers had adopted a similar strategy for the Labour Day demonstration on May 1. He questioned how authorities could conclude that all those attending the Victoria Park vigil in small groups would be gathering for the same purpose and thus breaking social distancing rules. "I could be commemorating the mother of a Tiananmen Square victim. Another person may be thinking about resistance," he said. Police have banned another opposition group, the Hong Kong Association for Democracy and People's Livelihood, from holding a separate vigil on Thursday evening in Sham Shui Po. An appeal was lodged but rejected on Wednesday. Barrister Anson Wong Yu-yat said the police interpretation of rules on group gathering was debatable. "No one can say with certainty whether the court will regard two or more groups of eight protesters physically assembling in a place, while keeping 1½-metre distance between each group, as collectively constituting a prohibited group gathering," he said. A spokesman from the Food and Health Bureau said: "Whether a particular gathering is a group gathering depends on the actual circumstances of the case, such as whether the gathering is organised beforehand, whether there is any interaction between the participants, and whether the gathering only lasts for a very short period of time." Breaching the social distancing rules carries a fine of HK$2,000 (US$258) for participants and a HK$25,000 fine and six months in jail for organisers. ^ top ^

HK leader to visit Beijing to discuss national security law (China Daily)
2020-06-03
Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor will visit Beijing on Wednesday and share her views on national security legislation with central government officials, according to a statement issued by the HKSAR government on Tuesday. She will return to Hong Kong on Thursday morning. During her absence, Chief Secretary for Administration Matthew Cheung Kin-chung will be the acting chief executive. Secretary for Justice Teresa Cheng Yeuk-wah, Secretary for Security John Lee Ka-chiu, Commissioner of Police Tang Ping-keung and Director of the Chief Executive's Office Chan Kwok-ki will join the visit. ^ top ^

 

Taiwan

Taiwan draws up plan to woo US$1.3 billion of annual tech research in semiconductors, 5G and AI (SCMP)
2020-06-04
Taiwan is dangling incentives to attract more than NT$40 billion (US$1.3 billion) of annual investments in research and technology, creating a seven-year blueprint to safeguard the island's lead in semiconductors and other cutting-edge fields. As part of the initiative, the cabinet plans to allocate more than NT$10 billion to entice foreign chip makers to set up R&D facilities locally, confirming an earlier Bloomberg News report. The government said Thursday it aims to subsidise as much as half of all research and development costs incurred by global chip companies that build centers on the island. The endeavour escalates global competition for much-sought-after semiconductor technology and is intended to build on the island's technology industry, led by major players such as key Apple suppliers Taiwan Semiconductor Manufacturing Co (TSMC) and Hon Hai Precision Industry. Taiwan has been caught in the middle of a clash between the US and China over the development of chip technology that powers everything from smartphones to 5G base stations. Last month, the Trump administration barred any chip maker using American equipment from supplying China's Huawei Technologies without approval, dealing a major blow to TSMC – the world's largest contract chip maker – and its peers. Taiwan President Tsai Ing-wen has pledged to transform Taiwan into an R&D hub for emerging technologies. Her government is now pursuing more foreign tech investments from multinationals seeking to shift out of China over concerns about the intensifying US-China trade war and their desire to reduce dependency on the world's second-largest economy. The incentive program is mainly targeted at makers of memory chips, though part of it will also be used to attract global 5G and artificial intelligence technology companies. ^ top ^

Coronavirus, China-US trade war spark surge of Taiwanese investments onshore (SCMP)
2020-06-03
Taipei-based Bioteque Corporation has a sales office near Shanghai but never considered opening a factory in mainland China. So when the 29-year-old medical equipment maker was looking to expand production, it told the Taiwan stock exchange in March it would invest NT$1.6 billion (US$53.4 million) in a science technology park an hour from its head office, creating 141 jobs at home. The company picked the site in Taiwan's Yilan County because the central government offered a rent break and doubled the normal land-use period to 40 years with the option to renew after that, said Peggy Chung, head of accounting. "There was no consideration of mainland China because they offer no incentives," Chung said. "So, if we can invest in Taiwan, of course we make that a priority." Bioteque is among a growing number of Taiwanese investors bypassing mainland China and instead expanding at home. China's lure as the world's factory is losing its shine for Taiwanese companies, which are increasingly put off by rising costs, trade war tariffs on US-bound exports and supply chain vulnerabilities exposed by the coronavirus pandemic. "If you haven't gone, you're not going," said John Brebeck, senior adviser at the Quantum International investment consultancy in Taipei. Since January, the Taiwanese government has approved 188 investment projects from domestic companies that are worth NT$164.9 billion (US$5.5 billion) and will create 13,411 jobs, according to its InvesTaiwan office. Twenty-three companies, 12 per cent of the total, chose to expand in Taiwan over an existing offshore base, including the mainland. Their projects are worth NT$48.7 billion (US$1.6 billion). Domestic companies with existing offshore investments have proposed 39 per cent of new projects for Taiwan since the start of 2018, InvesTaiwan data showed. For companies like Daxin Materials, which produces material for display panels, Taiwan's talent, resources and government help to control costs have made investing in the self-ruled island a much more appealing proposition than the mainland, said finance department manager Hung Bao-hui. The 14-year-old Taichung-based firm received approval this year for a NT$1.3 billion (US$43.4 million) factory, which will employ 100 people, in Taiwan because the island is sheltered from supply chain breaks, InvesTaiwan said. "We're always gradually adding to production here to meet client capacity needs," Hung said, adding the company's two main clients were Taiwanese. IC Star Group had already ruled out China when it got the go-ahead this year to build a second precision equipment factory south of Taichung by 2021. "In principle, it's got easier to invest here," said management office worker Doreen Yeh, adding workers were easy to find. Taiwanese were some of earliest offshore investors in the mainland, where they began setting up plants in the 1980s to take advantage of low costs and a common language. But manufacturers must now evaluate production risks that have been highlighted by factory closures due to the pandemic earlier this year, said Ma Tieying, an economist with DBS Bank. "The Covid-19 crisis exposes the vulnerability of the regional manufacturing supply chain, which heavily relies on China for upstream sourcing and downstream production," Ma said. "Taiwanese firms will find it necessary to design a more resilient and diverse supply chain after the Covid-19 crisis, reducing the reliance on China and moving part of the production back to Taiwan or to other emerging markets." Trade tensions between China and the United States are adding to anxiety for some investors weighing the mainland against Taiwan. US tariffs on US$360 billion worth of goods affect companies of any origin that ship from the mainland. Taiwan was the world's top beneficiary of "trade diversion effects" linked to the China-US trade war, the United Nations Conference on Trade and Development said last year. The UN agency estimated a windfall of US$4.2 billion. A total of 480 companies have been approved for investment projects locally instead of expanding offshore since January 2018. Their combined investment in the island will top NT$1 trillion (US$33.4 billion) and create nearly 82,555 jobs, according to InvesTaiwan. A Taiwanese company setting up production in the mainland would now probably intend to sell finished goods to Chinese consumers or export to Europe rather than target the US market, Brebeck said. "Previously, most Taiwanese investors offshore would cluster in mainland China. Since the Sino-US trade war, Taiwanese investors have experienced that they must diversify production bases and invest in multiple places to reduce risk and turn a crisis into opportunity," InvesTaiwan said. Taiwan government incentives "help at the margins" when companies consider expanding locally, Brebeck said, offering deals on land use and waiving restrictions on movement of assets from offshore. InvesTaiwan expects more reshoring of capital from midyear as coronavirus outbreaks overseas lure businesses home. Taiwan has reported just 441 coronavirus cases, with no local transmissions, for more than a month. Taiwan has reported just 443 coronavirus cases, with no local transmissions, for more than 50 days. ^ top ^

 

Economy

Baidu continues self-driving push (China Daily)
2020-06-03
Chinese search giant Baidu Inc is accelerating its steps to commercialize self-driving technology as part of its broader drive to boost the smart transportation industry across the nation. Li Zhenyu, vice-president of Baidu and general manager of its intelligent driving group, said the smart transportation segment is expected to witness explosive growth as the nation is speeding up the construction of new infrastructure, such as 5G networks and data centers, which also brings about new opportunities to the commercialization of self-driving technology. In April, Baidu fully opened its self-driving taxi service Apollo Robotaxi in Changsha, Hunan province. Robo-taxis provide free rides to passengers across an area of 130 square kilometers. The services cover residential and commercial leisure areas as well as industrial parks. Li said China is taking the lead in the autonomous driving sector around the world, adding Baidu has also carried out passenger-carrying self-driving taxi road tests in Beijing and Cangzhou, North China's Hebei province. He added the company will continue to increase its investment in road coordination technology, which is used to increase the interaction between smart road infrastructure and self-driving cars, and helps upgrade the urban governance system. In addition, the Beijing-based tech behemoth has completed construction for the world's largest autonomous driving test base named Apollo Park in Beijing. Located in Beijing's Yizhuang Economic Development Zone, the 13,500-square-meter Apollo Park supports five key testing areas, including vehicle and accessory storage, long-range big data cloud control, command operations, maintenance, and R&D. At present, over 200 autonomous vehicles have been deployed in Apollo Park. ^ top ^

Green channel for China's int'l air cargo transport (Xinhua)
2020-06-03
China's international air cargo transport capacity has been sustained thanks to the effective green channel measures taken in the sector during the pandemic period, according to the civil aviation authorities. The civil aviation industry of China has seen a sharp increase in scheduled cargo flights, said the Civil Aviation Administration of China (CAAC). China now maintains scheduled air cargo flights with around 102 overseas destinations in 49 countries. In April, Chinese and foreign airlines carried out 1,574 scheduled air cargo flights per week, representing a 55.2-percent increase compared with the weekly volume before the COVID-19 pandemic. And in the first two weeks of May, the weekly volume was up to 2,365 flights, a 133.2-percent increase. The rapid growth in China's international air cargo sector has contributed to transporting vital supplies and ensuring global supply chains. The CAAC introduced a series of green channel measures to facilitate international air transport in the pandemic period. These comprehensive measures include a simplified flight approval process, more flexible time limits and around-the-clock online acceptance of flight applications, according to the CAAC. ^ top ^

 

DPRK

DPRK warns S. Korea against sending anti-Pyongyang leaflets (Xinhua)
2020-06-05
A senior official of the Democratic People's Republic of Korea (DPRK) has threatened to scrap the military agreement with South Korea unless Seoul stops sending anti-Pyongyang leaflets across the demilitarized zone, the official Korean Central News Agency (KCNA) reported on Thursday. Kim Yo Jong, sister of top DPRK leader Kim Jong Un and the first vice department director of the Central Committee of the Workers' Party of Korea, on Thursday issued a statement warning against the senseless act of scattering anti-DPRK leaflets in the frontline areas by "defectors from the north," said the report. "On May 31 I heard a report that so-called "defectors from the north" scattered hundreds of thousands of anti-DPRK leaflets into the areas of our side..." Kim Yo Jong said in the statement. "The South Korean authorities must be aware of the articles of the Panmunjom Declaration and the agreement in the military field in which both sides agreed to ban all hostile acts, including leaflet-scattering in the areas along the Military Demarcation Line," said the statement. Before long the nation is to commemorate the 20th anniversary of the June 15 joint declaration, it said, warning that "if such an act of evil intention committed before our eyes is left to take its own course under the pretext of 'freedom of individuals' and 'freedom of expression,' the South Korean authorities must face the worst phase shortly." The statement also warned that the North will completely withdraw from the Kaesong industrial project and shut down the joint liaison office in the North's border city, unless Seoul stopped such actions. The North-South relationship warmed up in 2018 when their leaders held three meet. ^ top ^

DPRK fully supports China's decision on national security legislation for Hong Kong (China Daily)
2020-05-30
The Foreign Ministry of the Democratic People's Republic of Korea (DPRK) has said that it fully supports China's decision on national security legislation for Hong Kong, the official Korean Central News Agency (KCNA) reported Saturday. It is a legitimate step that China has adopted the Decision on Establishing and Improving the Legal System and Enforcement Mechanisms for the Hong Kong Special Administrative Region (HKSAR) to Safeguard National Security, which is based on the Constitution of the People's Republic of China and the Basic Law of the HKSAR, at the third session of the 13th National People's Congress (NPC), the KCNA quoted a spokesperson for the ministry as saying. "We fully support the measures taken by the Party and government of China for safeguarding the sovereignty, security and territorial integrity of the country and achieving stability and prosperity of Hong Kong based on the policy of 'one country, two systems,'" the spokesperson said. A difficult situation is being created in Hong Kong in recent years, which threatens the principle of "one country, two systems" and the national security of China, he noted. "This is the product of a plot by the external force and its vassal forces that seek the division and disintegration of China by tarnishing the image of a socialist country and fomenting and escalating a social disorder," the spokesperson added. "Since Hong Kong issue is one pertaining thoroughly to the internal affairs of China, any country or force has no rights to say this or that about it. We categorically oppose and reject foreign interference detrimental to the security and the social and economic development of Hong Kong," the report continued. On Thursday, deputies to China's 13th NPC voted overwhelmingly to approve the decision on national security legislation for Hong Kong. ^ top ^

 

Mongolia

IMF approves US$99 mln disbursement under rapid financing instrument to Mongolia (Montsame)
2020-06-04
On June 3, the Executive Board of the International Monetary Fund (IMF) approved Mongolia's request for emergency financial assistance under the Rapid Financing Instrument (RFI) equivalent to SDR 72.3 million (about US$99 million, or 100 percent of quota) to meet urgent budgetary and balance of payment needs stemming from the outbreak of COVID-19 and to support the most affected sectors and vulnerable groups. Following the Executive Board's discussion of Mongolia, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Chair, made the following statement: "Mongolia has successfully avoided a domestic outbreak of COVID-19 thus far, helped by the early introduction of social distancing and tight health protocols for cross-border flows. Nonetheless, the pandemic has sharply reduced economic activity due to both the economic cost of the containment measures and the fall in external demand. There is now an urgent balance of payments need and a fiscal financing gap. "The authorities have already taken a number of measures to limit the economic contraction and help the most vulnerable. Recent revisions to the budget allow for higher health and social spending as well as tax relief to affected households and businesses. In addition, the Bank of Mongolia has eased monetary and financial policies to help prevent a disorderly contraction in bank lending to the private sector. "Emergency financing under the IMF's RFI will provide much-needed support to respond to the urgent balance of payments and budgetary needs. Additional assistance from development partners will be required to support the authorities' efforts and close the financing gap. The authorities' commitment to high standards of transparency and governance in the management of financial assistance is welcome. "As the immediate threat to the economy subsides, it will be critical to resume key reforms begun during the recent Extended Fund Facility arrangement. These include a return to fiscal consolidation to reduce still-high public debt, a more flexible exchange rate to build up foreign exchange reserves, remedying AML-CFT deficiencies, and stronger supervisory enforcement to ensure that all banks have sufficient capital." ^ top ^

 

Sandro Wirth
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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