A PEEK INTO EVERY DAY CHINA : DRAGON ON A DRIP PART 2 by Lt Gen P R Shankar (R)

Part 1 @ https://www.gunnersshot.com/2022/04/a-peep-into-everyday-china-dragon-on.html

 

The Chinese virus after travelling all over the world has returned to its motherland. The virus wants to stay with the future superpower which is going to rule the world. By the way, the intelligence  is that the virus loves the weather  and environmental conditions in China and considers it the best place to retire in. It also likes the Chinese people and loves to get into them. It is fascinated by the efforts of the Chinese Communists who are attempting to build a Zero Covid Wall to keep the it out. The Great Wall of China could have kept the Mongol hordes out, the Great Internet Firewall could have insulated China from the world but no wall can keep away the Virus from spreading far and wide in China. That is now proven. 

 

Like every thing communist, what goes on inside is rarely reflected on the outside. Hence the aggression being exhibited against Taiwan, its foray into Pacific Islands, its military exercises with Russia, its newfound assertiveness in the South China Sea and all other geopolitical initiatives present an intact external façade. The news which you will see in days ahead is that China has recovered and its economy is firing on all cylinders. Life is back to normal and the Chinese form of government has done better than any other form of government. Look beyond the façade. The virus has created internal havoc which I have highlighted in my previous articles. I am highlighting some more in this article. Read this in conjunction with the others and you will find that the drag on the Chinese economy is widespread and that people are not really happy. The sum is that we are looking at a fast ageing China, whose people are not exactly happy and whose economy is significantly slowing down. The communists are worried. Make no mistake. That is why I have titled this article as Part 2 of the  A Peep into Everyday China : Dragon on a Drip. Like in earlier articles, I am only presenting facts published from authentic Chinese sources and media. You take the call as to where China is headed.       

   

Headline: China GDP: Premier Li signals ‘clear urgency’ on reviving economy, but no change to zero-Covid @https://www.scmp.com/economy/china-economy/article/3179297/china-gdp-premier-li-signals-clear-urgency-reviving-economy

 

Excerpts : A speech from Premier Li Keqiang to 100,000 officials from across China shows ‘a clear urgency’ to government efforts to avoid recession, say analysts. But Li’s comments do not signal a change in the zero-Covid policy, which has locked down cities and led to an outcry from foreign investors and citizens. Premier Li Keqiang’s honest assessment of the stress facing China’s economy and rare warning of a potential contraction in the second quarter after two months of zero-Covid containment show Beijing is stepping up efforts to stabilise the economy. Li’s video conference  reinforced the pressure Beijing is putting on local authorities to prevent economic growth losing momentum… earlier the State Council, China’s cabinet, unveiled a package of 33 policies to support the economy, including fast tracking infrastructure projects and loan extensions for business, increasing tax breaks and rebates, encouraging car sales, and adding support policies by the end of this month.

Headline: China coronavirus: Shanghai restrictions caused ‘more severe economic hit’ than previous lockdowns @ https://www.scmp.com/economy/economic-indicators/article/3180035/china-coronavirus-shanghai-restrictions-caused-more

 

Excerpts :  The Yangtze River Delta has been hard hit by Shanghai’s lockdown, as the city is a hub for local supply chains…Most big cities in the region, including Nanjing and Suzhou, saw industrial growth and retail sales decline in April…As Shanghai started to lift its two-month citywide lockdown on Wednesday, a growing number of economic indicators have revealed the damage caused by the draconian containment policy – much of which is being felt beyond the city itself….The Yangtze River Delta – an economic powerhouse and important gateway for foreign trade – has also been hit hard, as Shanghai is the strategic centre for supply chains and logistics networks in the region, which contributes about a quarter of national economic output.

 

Headline : Can China save its coronavirus-hit aviation sector from a ‘cliff-like’ plunge as US, Europe recover?@ https://www.scmp.com/economy/china-economy/article/3180010/us-and-europe-recover-can-china-save-its-coronavirus-hit

 

Excerpts: Under a new stimulus package unveiled by Beijing last week, airlines will receive significant aid from the central government, including loans and subsidies…but China’s zero-Covid policy is still suppressing demand for travel, while skyrocketing fuel costs and a weakening yuan are adding pressure on companies…Beijing is stepping up efforts to save its aviation industry from a “cliff-like” plunge in business, as the sector struggles to shake off the impact of zero-Covid and China’s deadliest aviation disaster in nearly 30 years…Under a 33-point stimulus package unveiled last week, airlines will receive significant aid from the central government, including emergency loans of 150 billion yuan (US$22.4 billion) and a bond issuance quota of 200 billion yuan…China has big ambitions for its aviation sector and has invested billions of dollars to make it internationally competitive, including by developing its own narrow-body passenger jet, the C919, to compete with Boeing’s 737 and Airbus’s A320.

 

Headline : China’s consumer sentiment hits record low, pessimistic outlook adds to calls for consumption stimulus policy @ https://www.scmp.com/economy/economic-indicators/article/3180029/chinas-consumer-sentiment-hits-record-low-pessimistic

 

Excerpts : China’s consumer confidence index slumped to 86.7 in April from 113.2 in March, hitting the weakest level since the data was first available in 1991…Premier Li Keqiang last week poured cold water on growing calls for Beijing to issue direct payments to stimulate domestic consumer demand, as seen in the US…China’s consumer sentiment has fallen to a historic low amid the tight zero-Covid controls, adding fuel to the debate over whether Beijing will offer direct cash handouts to aid the faltering economy…The country’s consumer confidence index slumped to 86.7 in April from 113.2 in March, according to multiple domestic economic databases citing the latest figures from the National Bureau of Statistics…It represents a fall below the watershed mark of 100 that separates optimism and pessimism, hitting the weakest level since the data was first available in 1991. The drop of 26.5 from March to April is also the sharpest on record.

  

Headline: China economy: Beijing unveils detailed stimulus plan to offset coronavirus damage @ https://www.scmp.com/economy/china-economy/article/3179881/china-economy-beijing-unveils-detailed-stimulus-plan-offset

 

Excerpts : China’s cabinet has published details of a support package to shore up economic growth, covering trade, tax, infrastructure and financial policies…Communication with foreign firms will be improved, some mobility restrictions will be cleared and job subsidies made available, among other measures…China has released further details of a stimulus package aimed at propping up the faltering economy, ranging from tax cuts to infrastructure spending to job subsidies…The state council, China’s cabinet, unveiled a 33-point plan last week, covering fiscal and monetary policies, investment and consumption, food and energy security, supply chain stability and people’s livelihoods…Various government departments published more detailed policies on Tuesday to meet the end-of-month deadline set by Premier Li Keqiang. 

 

Headline : China’s coronavirus lockdowns and slowing economy pushing job-hungry graduates overseas as poor students get left behind @ https://www.scmp.com/news/people-culture/social-welfare/article/3179310/chinas-coronavirus-lockdowns-and-slowing-economy

 

Excerpts : China’s youth unemployment rate was at 18.2 per cent for those aged between 16 and 24 last month..At the same time, a record 10.76 million college graduates are expected to enter the mainland Chinese job market this year…Just three months ago, Jin Jing saw her future career after graduating in either Hangzhou or Shanghai, the two major cities closest to her hometown…Since she enrolled in a degree at Monash University in Melbourne, Australia in early 2020, she has been taking online classes because of coronavirus travel restrictions…But as countries have recently begun opening up again to travellers she has decided to leave China for Australia to finish her studies and seek work there.

 

Headline : Cash crisis amid China’s stalling economy: rural banks freeze accounts, regulators playing ‘pass the parcel’ @ https://www.scmp.com/economy/china-economy/article/3179730/cash-crisis-amid-chinas-stalling-economy-rural-banks-freeze

 

Excerpts : Deposits at four rural banks in the central Chinese province of Henan have been frozen since April 18, sparking protests in the provincial capital city of Zhengzhou…President Xi Jinping has placed economic stability as a top priority and vowed to strengthen supervision within the state-dominated financial system…The cash crisis emerging at four rural banks in the central Chinese province of Henan is every saver’s worst nightmare.

Deposits at Yuzhou Xinminsheng Village Bank, Shangcai Huimin County Bank, Zhecheng Huanghuai Community Bank and New Oriental Country Bank of Kaifeng have been frozen since April 18, sparking a number of protests in the provincial capital of Zhengzhou…Pictures and videos of protesters in front of the Henan branch of the China Banking and Insurance Regulatory Commission (CBIRC) last week in Zhengzhou have been circulating online, with banners demanding “return our money”.

 

Headline China’s local governments, denied lifeline, face catch-22 scenario as businesses lose confidence @ https://www.scmp.com/economy/china-economy/article/3179484/chinas-local-governments-denied-lifeline-face-catch-22

 

Excerpts : Struggling under the weight of heavy-handed zero-Covid control measures, local cadres are ordered to take lead in boosting economic growth and employment…Meanwhile, businesses across China are reluctant to expand or hire amid low confidence in local government finances, further compounding economic woes…With their coffers already stretched thin, local-level governments across China now find themselves in the high-pressure position of having to help prop up economic growth and employment, with Beijing sending them a strong signal: you’re on your own…It’s a tall order at a time of considerable economic uncertainties stemming from China’s adherence to a strict zero-Covid policy that mandates lockdowns, mass testing and quarantines. These measures have had an outsized impact on consumer spending and on the desire and ability of businesses to expand and broaden their investments…In a candid teleconference with more than 100,000 cadresacross the nation on Wednesday, Premier Li Keqiang warned about the risks of rising unemployment and repeatedly urged local officials to use subsidies to protect the job market while also boosting their support for businesses and pressing on with infrastructure plans.

 

THE DRAGON CONTINUES TO BE ON A DRIP!