China and World Economy: Aftermath of Covid 19
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Coupling with China has given emergence to globalization and the Western World became use to nurture such relationship to maintain the profit rising and the cost going down without any look at other aspects of their own believes that they carry and pride themselves to be, companies in western societies standing firm on democratic, human rights and citizen rights as well as all the principles of equity, dignity and equality.
Where were all these believes during the moment when China was accepting all contractual conditions and trading terms?
Where were these sacred western owned believes in the human as the first element of respect, law, order and security?
China was still the worldwide heaven for being willing to receive any production and to adapt to it all the productive system and even send delegations of business and officials to tour the US and Europe to attract contracts and open doors for more expanded trade and exchange relationship with the western World.
Globalization has created a dependency on China’s manufacturing ecosystem and local business in a way that is wholly unprecedented.
But that is not to say that Xi won’t win his unprecedented third term at this year’s party congress, which has been moved up to mid-October just six weeks from now. Rather, this year’s event will be a political thriller for China watchers everywhere as we wait to see if the Communist Party will bestow unlimited power – unseen since the days of Mao – on this princeling or if there might be some correction.
The question of “tian ming” 天命, or “mandate of heaven,” may be for the Party to answer. But what it decides will determine Taiwan’s fate which impacts global peace and security.
A report released this week by Washington-based Uyghur Human Rights Project, found markets in the Washington, D.C., metropolitan area and some online retailers in the U.S. continue to sell more than 70 brands of red dates grown and processed in Xinjiang, a region in China that’s been the focus of a U.S. law on forced labor.
In December, President Joe Biden signed the Uyghur Forced Labor Prevention Act (UFLPA) into law. Enforcement of the law began in June. U.S. products wholly or partially produced in China’s northwest region of the Xinjiang Uyghur Autonomous Region (XUAR) are prohibited from entering the U.S. unless the importer can prove with evidence, they weren’t made by forced labor.
According to the report, U.S. online retailers including Amazon, eBay, and Walmart, sell red dates from Xinjiang.
“At least 15 U.S. companies import red date products for wholesale distribution to retailers, including Bloomington Import, Growland Inc., H&C Food Inc., OCM Globe Inc., and Tristar Food Wholesale Co., Inc,” the report said.
9/4/2022 – LinkedIn
China’s economy face a tricky structural slowdown. After his expected coronation on Oct 16th, Xi faces a complex trade-off between kickstarting growth & domestic political control — with consequences for Chinese regional geopolitical influence. My latest in the The Straits Times this weekend.
Thanks esp to Bert Hofman（郝福满）and colleagues at EAI in Singapore for hosting the event with Kevin Rudd that got me thinking about the link between Chinese growth rates and the way the country is viewed around SE Asia in particular.
#china #economy #xijinping #geopolitics
China in the Eye of the Storm: Supply Chain and Chains for
Further, it will get too difficult (and too costly) for businesses to comply with new regulations that will be passed or amended on the basis of new evidence contained in the UN’s report. Lawmakers in many countries are likely to shift the burden of proof that products manufactured in China were not made using forced labor onto individual firms, as the US’ Uyghur Forced Labor Prevention Act does. Adherence to such rules is all but impossible as Xinjiang-produced goods permeate many, if not all, of China’s global distribution and supply chains.
https://dexter.substack.com/p/trade-war-bae
Dexter Roberts• Following Senior Fellow at Atlantic Council •
*Economists start to question whether China’s economy will ever surpass the US. Youth unemployment sparked by Xi’s earlier crackdown on tech companies. Weak consumption holds back growth. And Beijing sends senior officials to the provinces in sign of concern over slowdown.
*A survey of American companies reveals a precipitous drop in confidence, with over one-half reporting cancellations or delays in new investment. After release of the UN report on Xinjiang, multinationals face major ethical & public relations dilemma. And even as tensions roil the Taiwan Strait, no one wants to mess with TSMC, producer of advanced semiconductors for the world.
*New pandemic lockdowns in China. A rare sign of dissent over Xi’s stringent Zero Covid policy. US life expectancy now lags China by 2.1 years, largely because of Covid fatalities.
And “Why stimulus won’t work: It’s the consumers, stupid,” a new commentary by this newsletter’s author.
“It’s the consumers, stupid”
China’s latest spending bonanza—trillions of yuan aimed at stimulating growth—is missing the point. Beijing needs to find a way to get Chinese consumers spending, not throw more money at its economy, writes this newsletter’s author in The China Project.
“With confidence plummeting, no one is spending much at all (even in the best of times, China has struggled to lift household consumption, stuck at just under 40% of GDP, which is low compared to the 55% and higher common in other large countries). Retail sales grew just 2.7% in July, compared to 3.1% the previous month and way below the around 12% monthly average during the twenty-some years before the pandemic hit in 2020. And consumer confidence is at its lowest since 1991, the year the government first began measuring it.”
Everything from cars and communication products to jewelry and cosmetics are experiencing sharp drops in sales this year, the worst falls yet seen during the pandemic. “Persisting uncertainty in the wake of the pandemic and weak household income has hit China’s consumer and manufacturer confidence harder in 2022 than in the past two years,” says a recent report by S&P Global. “Consumers are buying less, which will slow down the recovery of China’s domestic consumption for the remainder of 2022 compared with the recovery seen in 2020 and 2021.”
Why isn’t anyone opening their wallets? First and foremost: the Zero Covid policy which necessitates rolling lockdowns, shutting down businesses and limiting most economic activity. Meanwhile, the slow motion collapse of China’s real estate market is slamming confidence too.
The unfortunate reality: Beijing can keep pumping money into the economy but that could hurt more than help. As long as China’s consumers are worried about getting locked in at home—in homes that they simultaneously watch depreciate in value—they will keep sitting on the sidelines.
Jeremy Goldkorn @goldkorn A trillion RMB does not impress @dtiffroberts Why stimulus won’t work – The China Project It’s the consumers, stupid. thechinaproject.com September 2nd 2022
China’s serious growth problem
“China has a serious growth problem. It wants more consumption and less reliance on investment and exports but consumers aren’t spending like before. Reinforces our call that growth will drop to 3% permanently and faster than many think,” tweets Sergi Lanau, deputy chief economist at The Institute of International Finance.
China offline consumption drops by 1.2% of 2019 GDP
In just the first three months of the pandemic, China’s offline consumption fell by over 1.22 trillion yuan or 1.2 percent of 2019 GDP, reports the Stanford Center on China’s Economy & Institutions citing research.
Taiwanese troops find food package ‘dropped by drone from mainland China’
The island’s defence ministry says the package was found on Lieyu, a small island that is only 5km from the mainland city of XiamenA video posted on the Chinese social media network Weibo shows a man putting together the package with a note addressed to Taiwanese troops
SCMP [excerpt]: Taiwanese troops stationed on a small island near the Chinese mainland have found a #food package that is thought to have been dropped by a #drone.
The delivery of the package came after a series of incidents in the offshore islands in the #Quemoy – or #Kinmen – chain in recent days. Troops shot down a civilian #drone that flew over from the mainland on Thursday following a series of other fly-bys.
The island’s defence ministry said that on Friday afternoon, soldiers found a food package wrapped in a rubbish bag on a beach on Lieyu, which is about 5km (3 miles) from the mainland city of #Xiamen.
The package was suspected to have been dropped by an unidentified drone, the ministry said, without stating if it had come from the mainland.
Earlier that day, the #defence ministry said it had spotted two drones near Lieyu, which were warned off after troops let off flares and flew back to Xiamen.
The Taiwanese #military will take strong measures against drones that “endanger military and civilian safety by dropping objects”, the ministry added.
The package, which includes a Chinese tea egg and a pack of zha cai, a Sichuan-style pickled vegetable, was carried by a civilian drone that flew from Xiamen, according to Taiwanese media reports.
The report cited a video released by a mainland Weibo user named Quanzhou captain on Friday, which shows him wrapping a package, including the food and a letter, before attaching it to the drone.
The letter read: “Hello, #Taiwan compatriots … We are sending our best, and unaffordable, zha cai and tea eggs to you, greetings to the frontline defenders” – a mocking reference to previous Taiwanese television shows saying mainland people cannot afford the two kinds of food.
It added: “People on both sides of the strait are always one family.”
#news #geopolitics
Taiwan is just on the other side of the strait of Fujian
China can play the cards between the Native Taiwanese and the domination of eco-politics by the followers of Kai Gha Tchek, the ones who Mao allowed to emigrate to Taiwan with the logistic help of the Japanese their allies.
So the visit of Pelosi is not a new for China who have been cohabitating with the contenous support of the US to the Taiwan rulers.
China economy is not in bad way as stated in this article, China is in transition way and adjustment level with what is happening around the world as recessive trends that resulted from the distribtive periods caused by the global spread of pandemic Covid 19 and stimulated by the series of sanctions that Russia was hit with by the United States and the European Commission which all additionned with other countries will total 40 countries
Said El Mansour – Tate Yoko Research Institute – TRIrsnotSepdoth0h41ul8mcf9c69m7g807cc3ml7a7f1ugt1f256u1g8u3f800 ·
#Business#Profile of Sanctioned #Russia by the European CommissionThe world economy consists of 193 economies, with the United States being the largest.
As per World Bank estimates, the nominal world GDP in 2017 was $80,683.79 billion. In 2018, the nominal world GDP was $84,835.46 billion in 2018, and it’s projected to be $88,081.13 billion in 2019.The World Economy is formed by 193 economies.
In this conglomerate, 40 countries are directly involved in the sanctions against Russia.So where the 40 countries participating in the Russia sanctions and representing more than 50% of the World GDP have found alternatives and substitutes?How is the real impact on the 153 countries that are not participating in the Russia sanctions?
How the rest of the World Economy is actually impacted by such decline and dependency of Russia on international supply and demand?
These are the real and targeted interrogations that are not presented here par this portrait of “colossal damage to the Kremlin’s ability to wage war.
And the damage will only grow over time.”
Is this damage only growing over time for the rest of the World Economy?
Or is this just the problem for Russia?
How about the Rest of the World and in the first place these 153 countries not involved in the Russia Sanctions but are on the front line also of the Trade and Economic Wars resulting from the Sanctions against Russia which is adding more conflictual relationships and cementing the International competition and other trade antagonisms already existing in the world before even the Russia – Ukraine War.
Would it be more informative if the European Commission had provided more accurate inputs based on an assessment and evaluation with references to what is the real impact of Russia Sanctions on all the aforementioned aspects within the countries participating and those not participating in the sanctions against Russia?
What are the Contingency plans that the European Commission had built to reduce those impacts worldwide?
#business #economy #contingencyplanning #usa #europeanunion #europeancommission #worldbank #worldeconomy #grossdomesticproduct #russiaukrainewar #russiasanctions
European Commission
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· Ukraine must win this war.This is why we have mobilised our economic might like never before.
Our far-reaching sanctions are causing colossal damage to the Kremlin’s ability to wage war.
And the damage will only grow over time.Putin himself has admitted it.More on the impact of our sanction ↓ #StandWithUkraine
