Foreign Policy

• Canada, China team up for vaccine candidate (China Daily)
• EU investment deal with China likely to hinge on three key elements, says European trade official (SCMP)
• Trump administration excessively critical of China, creates dangerous confrontation: former US ambassador to China (Global Times)
• Potential tariffs not punishment but wake-up call to Australia (Global Times)
• China unveils new tariff exemptions on US goods (Global Times)
• Australia's 'invisible subsidies' harm Chinese farmers (Global Times)
• Fate of phase one trade deal implies future of relationship (Global Times)
• Xi, Putin agree on need for solidarity (China Daily)

Domestic Policy

• Xi Focus: Xi chairs leadership meeting on regular epidemic response, industrial and supply chains (Xinhua)
• China's central SOEs to achieve collaborative development with satellite navigation industry (Xinhua)
• China drafting law on personal information protection (Xinhua)
• Chinese gov't officials to use video links, hotlines for "two sessions" (Xinhua)
• Team sent to investigate newly locked-down city (China Daily)
• Probe into former aircraft carrier program commander unlikely impacts China's naval devt (Global Times)
• Encryption of personal information collected for COVID-19 prevention advised (Global Times)
• China reveals large destroyer's replenishment training for 1st time (Global Times)
• Chinese scholar calls for political reform, criticising 'tight control' over Covid-19. A day later, police come for him (SCMP)
• Leak of virus impossible, biosafety lab chief says (China Daily)

Beijing 

• Beijing ban on aerial vehicles suggests two sessions shortened to 7 days (Global Times)
• Restrictions on all-cargo flights at Beijing airports lifted (China Daily)
• All Beijing students set to return in June (China Daily)

Xinjiang

• US Senate passes Uygur Human Rights Policy Act (SCMP)

Hongkong

• Hong Kong authorities inquiring whether student volunteers covering protest involved child labour (SCMP)
• Coronavirus: hundreds of Hong Kong households to be screened amid cluster fears after third member of family tests positive (SCMP)
• Hong Kong police arrest 230 at Mother's Day protests, as local media groups slam treatment of journalists covering event (SCMP)

Taiwan

• China firmly opposes Taiwan-related proposal to WHO by some countries (Xinhua)
• US Navy warship transits Taiwan Strait as PLA starts live-fire drills (SCMP)
• Beijing urges France to cancel contract to sell arms to Taiwan (SCMP)
• Taiwan island will fall flat as US puppet: Global Times editorial (Global Times)

Economy

• China's economic recovery quickens amid improving leading indicators (Xinhua)
• Coronavirus, growing China-Southeast Asia trade ties could drive offshore use of yuan: FSDC economist (SCMP)

DPRK

• K-pop world domination is older than you think – I couldn't even escape it in North Korea 10 years ago (SCMP)
• DPRK lashes out at military drill by S. Korea, calling it "grave provocation" (Xinhua)

Mongolia

• Exports decreased by 45.3 percent compared to previous year (Montsame)
• Foreign Minister meets WHO Representative in Mongolia (Montsame)

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Canada, China team up for vaccine candidate (China Daily)
2020-05-14
The National Research Council of Canada is collaborating with China's CanSino Biologics Inc to advance the bioprocessing and clinical development in Canada of a vaccine candidate against the novel coronavirus. The collaboration on the vaccine candidate, Ad5-nCoV, was announced Tuesday. Ad5-nCoV received Chinese regulatory approval earlier this year, allowing CanSinoBIO to move ahead with human clinical trials in China. It is one of only a handful of COVID-19 vaccine candidates in the world approved for initial safety testing in humans, and was the first to begin conducting phase-two human clinical trials, according to a statement released by the NRC. "This vaccine candidate holds great promise. Until such time as there is an effective vaccine for COVID-19, the virus will continue to disrupt all aspects of our society and economy," said Iain Stewart, president of the NRC. The relationship between the NRC and CanSinoBIO was established in 2013. The NRC's HEK293 cell line was later licensed to CanSinoBIO and used in the development of an approved vaccine against the Ebola virus. Yu Xuefeng, CEO of CanSinoBIO, said it was "perfect timing" to leverage cutting-edge technology and resources from both sides that are critical to the development of Ad5-nCoV. "We are in this global public health emergency together, and a collaborative engagement could be the shortcut to help win this race against the novel coronavirus," said Yu. The statement said that the new COVID-19 vaccine is also produced using HEK293 cell lines that were designed and developed at the NRC. By bringing their technologies and expertise together to fight COVID-19, CanSinoBIO and the NRC are aiming to "pave the way" for future clinical trials in Canada, in collaboration with the Canadian Immunization Research Network at the Canadian Center for Vaccinology. The vaccine is subject to approval by Health Canada, for which CanSinoBIO is in the process of filing a clinical trial application. The first- and second-phase human trials have already started in China. Chinese Science and Technology Daily said that the first-phase studies for Ad5-nCoV began in March, with 108 people taking three different doses. In an unusual step, CanSinoBIO began second-phase testing in early April with 500 people, even though the first phase will not be completed until December. A third phase could involve a far larger number of people, perhaps as many as 10,000. Lakshmi Krishnan, director general of the NRC's Human Health Therapeutics Research Centre, said the trials in Canada will complement and expand on what's been done in China. "We're bringing back home a Canadian technology, and we're able to have the most advanced vaccine candidate in the world potentially available for Canadians in short order," Krishnan told CBC News. She said a phase-one trial for the Ebola vaccine took place at the Canadian Centre for Vaccinology in Halifax. The first coronavirus vaccine also will be tested on healthy human volunteers there. If successful, the phase-two trials could start in the fall, with a vaccine available for noncommercial use for front-line workers and those at risk in late 2020 or early 2021. The collaboration announced Tuesday will allow the NRC to advance a scaled-up production process for the vaccine candidate, using its proprietary HEK293 cell line. As a preparatory step, the Canadian government has already announced $44 million in funding to support upgrades to the NRC's facilities in Montreal to enable compliance with good manufacturing practice standards, to ensure readiness for Canadian bioprocessing of potential vaccine candidates as they become available. ^ top ^

EU investment deal with China likely to hinge on three key elements, says European trade official (SCMP)
2020-05-14
The European Union's top trade diplomat in Beijing hinted on Wednesday that the bloc might not sign off an investment agreement with China by the December deadline without key demands on market access and state subsidies being met. "For the EU, we are committed to the end of the year 2020 deadline to conclude the EU-China investment negotiation, but only if China commits to a level of ambition in substance for an agreement that is worth having," Ulrich Weigl, head of trade section of the EU delegation to China, said in a web conference organised by the European People's Party, the biggest group in the European Parliament. Weigl said three issues were at stake. "It is essential in these dynamics to see more ambition from China on market access," Weigl said, referring to a long-standing complaint from Western companies trying to gain a foothold in China. "This is about rebalancing the existing asymmetry in all levels of market openness, and that goes back to the fact that the EU market already is quite open to China, and China needs to make much more effort to show more ambition to liberalise on its side.' Secondly, he said, "we need ambitious commitment on state-owned enterprises (SOEs) and on transparency on subsidies – again, effectively level the playing field and the conditions under which our companies, exports and investors [who] compete against these companies in China hope to succeed." The World Economic Forum has said that SOEs account for 85 per cent of all Chinese corporations listed on the Fortune Global 500. The third element for the EU, Weigl said, is a "strong commitment on sustainable development" from China that covers labour, environment and climate change. The scheduled March trip to China by European Commission President Ursula von der Leyen and European Council President Charles Michel was postponed because of the coronavirus pandemic and has been rescheduled for June. "2020 can still be a very significant year for EU China relations, if China walks the talk," Weigl said. "Fundamentally China will continue being what it is, all at the same time – a partner, a competitor and a systemic rival." "For EU-China relations, the important issues [are] about what choices China will make in the process and how we can … engage and where we need to push to assert ourselves at the same time," he added. He described the negotiations on the investment agreement as "intense", with two more rounds of talks scheduled for this month and next. The EU could also "support" certain aspects of the mix of fiscal measures and policy choices that China will make to revive the economy after the pandemic eases, Weigl said. He also called on European policymakers to pay attention to whether China's post-coronavirus measures could work to the advantage of European companies. China is expected to spend enormous sums on new infrastructure and new technologies, he said, adding: "In the recovery context, looking at our interest in that dynamic, fair market access in the opportunities that may emerge is certainly key, and our engagement with China would be very important so that we don't miss out any opportunities that may be there." Besides, Europe is also concerned whether it would be adversely affected by China's trade deal with the US, such as the agriculture sector. "We are certainly not sitting at the table to be able to say how robust it is or what current dynamics there are, but we see the outcome of the deal and also the implementation done by China," Weigl said. "We are very keen to make sure that what is being done is not done to the disadvantage of European companies and member states competing in those sectors." ^ top ^

Trump administration excessively critical of China, creates dangerous confrontation: former US ambassador to China (Global Times)
2020-05-14
The Trump administration is excessively critical of China which is starting to create an extremely dangerous situation and may lead to a self-fulfilled prophecy of a very deep confrontation between the US and China, warned the former US ambassador to China. Max Baucus, former US ambassador to China, told the Global Times in an exclusive interview that the situation in the US now reminded him a little of Germany in the 1930s and the McCarthy era in the US when there was red baiting and lots of people attacking others for being close to the Communist Party. At this time of excessive rhetoric against China, if thoughtful people are too afraid to speak up in the US, like what happened in Germany in 1930s, the situation could become even more dangerous, Baucus said. Baucus previously made international headlines when he pointed out directly during a CNN interview that the Trump administration's rhetoric is so strong against China that it's over the top. He said the US is entering "a kind of an era which is similar to Joe McCarthy" and "a little bit like Hitler in the 30s." During the interview, he noted to the Global Times that the US and China really need each other. "We need each other economically. We need each other, basically, to coexist." Talking about the possibility of a war between the two largest economies, Baucus said the situation is different from Europe in the late 1930s and early 1940s when there was a mad man Hitler, whose sole goal was to conquer Europe. The former US ambassador said even though there may be suggestions for China to prepare for an armed conflict, he did not think it will happen. "Even if a Chinese ship and an American ship bump up in the South China Sea, there will be a lot of headlines and a lot of people will be upset. There will not be a bigger war [between the US and China]," he said. Baucus said one of the reasons the Trump administration has adopted such strong rhetoric is when there's a rising power like China, whose GDP may at some point exceed that of established powers like the US, Americans will feel a bit anxious. "We Americans are so used to being number one. We're so used to being the leader in the world. Now that might change. That's the first dynamic," he said. He said another reason is because the cultures of the US and China are different. If the rising power is a Western country like France, it will be easier for Americans to accept because they are also part of Western culture. According to the former ambassador, President Trump targeting China is partly to divert blame and partly because the US economy is not doing very well today. As the upcoming presidential election approaches, it's noticeable that both Republicans and Democrats are criticizing China and they are criticizing each other for being soft on China. "The goal of Donald Trump, the goal of most current senators and the goal of former Vice President Joe Biden is to get elected. And in the climate to get elected, you have to say things that people like. Today, people kind of like to see China getting criticized, which is unfortunate, because I think basically American people like the Chinese people, just like Chinese people I think like American people," he said. Baucus was US Ambassador to China from 2014-2017. He told the Global Times that during his tenure in China, it was clear to him that the Chinese people generally had a pretty good view of the US. He feels sorry that now many American people don't know about China and they don't travel to China very much. In the current situation, the former ambassador said the Democrats won't be soft on China because if they start to embrace China, they'll be roundly criticized by Republicans as jeopardizing US national security. "The big question is what happens after the election?" he said. "I very much hope that after the election, whether Trump or Biden becomes the president, there's a pause." The US government should then take a deep breath and realize the past rhetoric has been excessive and is not helpful, he added. "The main thing is we have to look for areas in which we can cooperate, and those where we can't. Let's put those others aside for a while and let's start out with where we can," he told the Global Times, adding that bilateral relations will not go back to where they were, but both sides can go forward in a more constructive, respectful way. ^ top ^

Potential tariffs not punishment but wake-up call to Australia (Global Times)
2020-05-12
The relationship between China and Australia has been strained in recent years due to the latter's unfriendly actions against the former, including but not limited to blocking Chinese takeovers of Australian businesses, banning Huawei's 5G network from entering its market on national security grounds, and a white paper urging an alliance with the US to contain China. To make things worse, Australia's recent attempt to appeal for the support of the US, Germany and France of a so-called "independent" inquiry into "the origin and spread" of the COVID-19 outbreak has exacerbated the tensions between the two countries, casting a shadow over the bilateral trade that is crucial to Australia's economy. Against such a backdrop, growing concern over potential retaliatory measures from China seems totally justified given Australia's heavy economic reliance on China. The latest meat import suspension and the possible imposition of major tariffs on Australia's barley exports don't necessarily represent China's economic punishment for Australia, though they may serve as a wake-up call for Australia to reflect on its economic links with China. China is the largest destination for Australian exports, accounting for 32.6 percent of the total in 2018/19. China is also the biggest market for Australia's major products and services, such as coal, iron ore, wine, beef, tourism and education. Chinese students have been major contributors to Australia's education revenue, accounting for about one-third of the country's education exports. Moreover, Australia has become the world's leading exporter of minerals, with China being the biggest buyer. According to the General Administration of Customs, China continued to be the largest importer of iron ore with 1.07 billion tons in 2019, while about 70 percent came from Australia, which thus became the largest exporter of iron ore. China's huge purchases have also made Australia the world's largest exporter of coal and liquefied natural gas (LNG). While China is the only choice for Australia's massive commodity exports, Australia is not necessarily the only option for China. There are also other countries like Brazil that can supply huge amounts of iron ore, coal or LNG to China. Of course, China's willingness to maintain a cooperative relationship with Australia hasn't changed, and it is now up to Australia to decide what to do next. It is worth mentioning that Australia is actually in competition with the US in the Chinese market. If China reduces its beef imports from Australia, it could make up for the loss with imports from the US. And the phase one trade deal between the world's two largest economies is a solid guarantee of their trade relations, but there is no guarantee for Australian trade. No one would mourn if it loses Chinese market amid escalating bilateral tensions. If that's the outcome Australia wants to avoid, it is time for the country to start sending positive signals to prevent bilateral relations from further deteriorating. ^ top ^

China unveils new tariff exemptions on US goods (Global Times)
2020-05-12
China on Tuesday announced that a new batch of imported products from the US will be excluded from punitive tariffs. The move came just days after the US released a tariff exemption list for imported products from China. Products on the list - 79 items including rare-earth ore, gold ore and medical disinfectant - will no longer be subject to additional tariffs from May 19, 2020 to May 18, 2021, read a statement from the Customs Tariff Commission of the State Council, China's cabinet. High-technology products like heater resistors and radar equipment for navigation were also included on the exemption list. Imports from the US previously faced additional tariffs in retaliation for the US' Section 301 investigation covering Chinese imports. Tariff exemptions on both sides, though not part of the phase one trade deal, were coordinated moves aimed at easing pressure on specific industries and companies in both countries, which have an interdependent trade relationship, experts said. The latest exemptions also pave the way for higher mutual imports, they said. On May 8, the Office of the United States Trade Representative (USTR) announced several new tariff exclusions for imported products from China, including medical items such as tumblers and disposable graduated liners for pitchers, and disposable plastic identification wristbands. China released its first list of goods that were exempted from the second round of additional tariffs in February. Products on the list included high-tech medical appliances such as gene-sequencing machines and aircraft autopilot system parts. The bilateral tariff exclusions come as the world's two largest economies have been pushing forward the implementation of the phase one trade deal despite the spreading COVID-19 pandemic. "The China-US phase one trade deal benefits China and the US, as well as the world. Both China and the US should uphold the principles of equality and mutual respect and jointly implement the agreement," Chinese Foreign Ministry spokesman Zhao Lijian told a regular press briefing on Thursday. Gao Lingyun, an expert at the Chinese Academy of Social Sciences in Beijing, who follows the trade talks closely, told the Global Times that both China and US may face difficulties carrying out the trade deal because of the pandemic. China may have delayed purchases of some US goods in the first quarter, while the US' ability to supply products to China has been constrained by the virus. "But the two have to show each other understanding to further implement such a mutually beneficial trade deal," Gao said. The expert noted that the key in pushing forward the hard-won trade pact is to "meet each other halfway and flexibly carry out the deal." For instance, Gao said that on China's side, "we can purchase some US products that it can't produce domestically but are needed by China, even though they are not included on the purchase list. "Based on the changing situation, we can revise purchase categories and procedures to achieve the final purchase goal," said Gao. China's Vice Premier Liu He was invited to talk with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin by phone on Friday. The two sides vowed to "create favorable conditions" for the implementation of the phase one trade deal. ^ top ^

Australia's 'invisible subsidies' harm Chinese farmers (Global Times)
2020-05-11
Australia's "under-the-table subsidies" on barley through its tax system have harmed China's grain sector and violated trade rules, which might be the cause of the extension of China's anti-dumping and anti-subsidy investigations, experts said Monday, following media reports that Canberra voiced concern over potential tariffs on its barley. Australian Trade Minister Simon Birmingham was quoted as saying by Reuters on Sunday that "The Australian government is deeply concerned by reports that unjustified duties may be levied on Australian barley imports to China," as results of the China-raised anti-dumping and anti-subsidy investigations on Australia's exported barley are due in the coming weeks. In response to an application from the China Chamber of International Commerce (CCOIC), China's Ministry of Commerce (MOFCOM) started investigating Australia's exported barley in November 2018 on the grounds that its barley price had been lower than the normal price, which harmed China's domestic grain market. "It is a normal trade remedy and investigation case under China's laws and the WTO's rules," Zhao Lijian, a spokesperson of China's Foreign Ministry, said on Monday. Australia has denied giving its farmers subsidies, Australian media reported. "It is true that Australia has canceled subsidies on agricultural products, but actual 'under-the-table subsidies' are still there as the Australian government compensates farmers through their tax system," Li Guoxiang, a research fellow on agricultural sector at the Chinese Academy of Social Sciences, who visited to Australia for an agricultural industry study, told the Global Times on Monday. The MOFCOM in November 2019 extended the investigation for another six months, citing the complexity of the case. And the value of imported barley was only $662 million in 2019, a more than 35 percent drop from $1.02 billion in 2018. "While the investigation has not been made public so far, the extension was likely because of a probe on 'unseen subsidies,' which takes longer time," Li said. "Barley is usually used for brewing beer, but since 2014, much of imported barley was also used as fodder, as the cost of barley went abnormally low, causing a severe impact on China's domestic grain crops sector," Li noted. According to official data, the planting area of similar products domestically declined from 7.032 million mu (4,688 square kilometer) in 2014 to 6.027 million mu in 2017, a 14.28 percent drop. Total national output fell from 1.812 million tons in 2014 to 1.6611 million tons in 2017, a decrease of 8.33 percent. "China had to be responsible to domestic farmers," Li added. Besides the row on barley, ties between China and Australia have deteriorated in recent years as the latter has conducted a series of unfriendly moves against China, including its attitude on the South China Sea issue, its white paper that urged an alliance with the US to contain China, and a call for a US-proposed investigation into the origin of the COVID-19 when Washington desperately tries to deflect blames on Beijing. Experts said the investigations, which started in 2018, are not related to Australia's call for an investigation into the origin of the COVID-19. "Australia's economy has deep links to China as it's one of China's major trade partners, which affects its national interests. However, some Australian politicians follow the US in pursuing political interests rather than real national interests, which has harmed China and ties between Beijing and Canberra," Jiang Yong, an expert at the China Institutes of Contemporary International Relations in Beijing, told the Global Times on Monday. "Australian politicians should know what Australia's real national interests are. And if they continue to anger China, China would use more countermeasures besides tariffs to respond," Jiang said. Jiang noted that China and Australia have a good foundation for thriving relations - the two countries have no territorial disputes, and trade ties are complementary. "So it would be mutually beneficial for the two countries to have sound ties." ^ top ^

Fate of phase one trade deal implies future of relationship (Global Times)
2020-05-11
US President Donald Trump's recent comment over the phase one trade deal created new uncertainty that will likely worsen US-China economic relations in the coming months. In an interview on Fox & Friends on Friday, Trump said that he has yet to make a decision on the fate of the trade agreement with China. Trump seems to have every reason to feel "very torn" to make a policy choice. While a recent conspiratorial firestorm in Washington that claimed to punish China over COVID-19, has fueled a deterioration in US-China relations, a conference call between top trade officials from the two countries indicates good progress is being made on the trade deal. Given various voices shadowing the bilateral relationship, China needs to keep vigilant against the risk that the phase one trade deal may fall apart, because that would mean a return of US-China relations to something worse than the trade war. To a large extent, the future of the relations between China and the US will hinge on whether the US could contain COVID-19 at the earliest possible time and whether its economy could sustain the shocks of the unprecedented health crisis. If the US could manage to avoid an economic collapse, the trade agreement may keep kicking in, which could somehow cushion the fraught US-China relations. Nevertheless, there is also the possibility that the US economy dives and spirals into a depression like the one in the 1930s, and Trump may spare no effort to pass it back to China. And once his team chooses to follow a radical re-election plan by imposing more sanctions over trade with China, then bilateral relations will inevitably deteriorate, and could go beyond a mere trade confrontation, and both will face a situation worse than the previous trade war. In the past, China has always adhered to the principle of reciprocity and exercised restraint in taking any countermeasures so as to avoid undermining the economic and trade foundation of bilateral relations. But if the US adopts harsher economic sanctions or refuses to deliver on interest and principal payments of China's nearly $1.1 trillion holdings of US Treasury bonds, China will not hesitate to upgrade its response. China has its own trump cards but has not really taken any retaliatory measures yet on a spate of fronts: rare earth export, and American companies' interests in the Chinese market, among others. If Washington continues to drum up the conspiracy theories, or moves to scapegoat China to demand so-called "compensation" and impose more sanctions, there would be ways to have US companies in China to "pick up the tab," even though it would be the least thing both sides like to see. The Trump administration is now at a crossroads as to how to handle its relationship with China, and the future US-China relations will be decided by what their next step will be. Although the Chinese economy has been hit by the COVID-19 epidemic, it clearly bottomed out in the first quarter, and now continues to stabilize. By comparison, the US economy is still far from returning to normalcy and is even in danger of a meltdown amid the spreading coronavirus. Anyone with a sense would know it is not the time for the US to have a head-on confrontation with China. ^ top ^

Xi, Putin agree on need for solidarity (China Daily)
2020-05-11
China is willing to work with Russia to safeguard the outcomes of World War II victory, uphold international justice and support and practice multilateralism, President Xi Jinping said in a phone conversation with his Russian counterpart, Vladimir Putin, on Friday. Xi offered warm congratulations to Putin and the Russian people as the country celebrated the 75th anniversary of the victory in the Great Patriotic War, Russia's term for World War II. The call was the third between the two leaders in three months. The war was an unprecedented disaster, and China and Russia, main battlefields in Asia and Europe, made huge sacrifices and indelible contributions to the victory, which saved mankind from grave danger, he said. The two peoples fought alongside each other and forged a great friendship, which served as an inexhaustible impetus for bilateral relations and everlasting friendship, he noted. Xi underscored that the two nations shouldered a special mission to safeguard world peace and security and promote the development and progress of mankind, and they must always remain committed to defending world peace, advancing global development and upholding international order. Epidemic containment efforts in Russia, under Putin's leadership, are paying off, and China has full confidence in the country's final victory over the pandemic, he said. The international community should give play to the spirit of the world anti-Fascist war, step up coordination and solidarity and implement the vision of a community with a shared future for mankind to jointly win the battle that concerns the life, safety and health of people of all nations, he said. He added that it is his belief that with the concerted efforts of China, Russia and the international community, the world will conquer the virus and secure eventual victory. Putin said Russia stands ready to step up comprehensive strategic coordination with China and showcase the resolve of jointly upholding world peace, adding that any attempt that tampers with history or dismisses history will be disallowed. Russia is willing to borrow experience on epidemic containment from China and launch joint programs on the development and research of vaccines, he said. He also voiced opposition to certain forces using the pandemic as an excuse to denounce China, saying that Russia will stand firmly with China. ^ top ^

Xi Focus: Xi chairs leadership meeting on regular epidemic response, industrial and supply chains (Xinhua)
2020-05-14
Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, on Thursday chaired a leadership meeting on the effective implementation of regular epidemic prevention and control measures. The meeting of the Standing Committee of the Political Bureau of the CPC Central Committee also studied measures to boost the stability and competitiveness of industrial and supply chains. Noting the complex COVID-19 situation overseas and the arduous task of preventing domestic rebounds, Xi demanded unremitting efforts to forestall imported infections and domestic resurgence by ensuring that the prevention and control measures are implemented down to every detail. "We must never allow our hard-earned previous achievements on epidemic control to be made in vain," Xi stressed. "We must ensure the victory in the battle against extreme poverty and the completion of the building of a moderately prosperous society in all respects." Xi stressed intensifying containment measures in key regions and places to forestall resurgence of infections, urging targeted prevention and control measures in Heilongjiang and Jilin provinces where cluster infections were reported, and improved community containment efforts in Hubei Province and Wuhan City. Xi also demanded Beijing strengthen its epidemic control during the upcoming annual sessions of China's national legislature and political advisory body. All localities should draw lessons from the recent cluster infections, overhaul loopholes in their respective prevention and control work to guard against epidemic rebound, according to a statement issued after the meeting. More flexible and effective measures should be taken in response to the new trend of overseas epidemic situation, the statement said, urging efforts to shore up the weak links in the prevention of imported cases. The meeting stressed further deepening the supply-side structural reform and leveraging the advantages of China's super-large market and domestic demand potential to create a new development pattern where domestic and foreign market can boost each other. Efforts should be made to re-establish the foundations of industries, upgrade industrial chains and beef up scientific and technological innovations, according to the meeting. On the premise of implementing regular epidemic prevention and control measures, China should promote the coordinated business resumption focusing on major industrial chains, leading enterprises and key investment projects. The meeting also urged efforts to facilitate various shopping malls, markets and life service sectors to return to normal operations and strengthen international cooperation to ensure the stability of global industrial and supply chains. ^ top ^

China's central SOEs to achieve collaborative development with satellite navigation industry (Xinhua)
2020-05-14
China's satellite navigation industry keeps growing, as the number of the BeiDou terminal products put into use increased by 20 percent last year. The data was released Thursday at the launch of a platform, initiated by 12 Chinese centrally-administered state-owned enterprises (SOEs) for the collaborative development with the fast-growing industry. The BeiDou Navigation Satellite System (BDS) is China's independently developed and globally operated navigation system. According to 2019 data, more than 80 million sets of BDS terminal products had come into service by the end of 2018. Apart from a 20 percent increase, the applications of the BDS have been promoted in the countries and regions along the Belt and Road. Users of BeiDou navigation and positioning services exceeded 500 million. In recent years, the central SOEs have undertaken various national projects related to the BeiDou industry, giving a strong boost to its service capacity. The newly-launched platform will focus on improving innovation, competitiveness and influence of the industry, with more advanced technologies and products as well as business models. Some SOEs are speeding up the construction of a service platform for the regional short message communications of the BDS-3 system, which will promote the integration of the BDS with technologies such as 5G, big data and cloud computing, officials said at the launch. ^ top ^

China drafting law on personal information protection (Xinhua)
2020-05-14
China is drafting a law on personal information protection, according to the Legislative Affairs Commission of the National People's Congress (NPC) Standing Committee. A draft of the law has taken shape and will be submitted to the NPC Standing Committee, China's top legislature, for review after a revision at an early date, according to the commission. In recent years, the NPC and its Standing Committee have formulated provisions concerning personal information security and protection in multiple laws, including the cybersecurity law, general rules of the civil code, criminal law and e-commerce law. The commission and the Office of the Central Cyberspace Affairs Commission began their research and drafting of the law on personal information protection in 2018. ^ top ^

Chinese gov't officials to use video links, hotlines for "two sessions" (Xinhua)
2020-05-14
Leading officials of China's cabinet departments are usually required to sit in on meetings during the country's annual national legislative and political advisory sessions as non-voting participants. But this year, amid regularized measures to prevent COVID-19, they are told to teleconference. A State Council executive meeting chaired by Premier Li Keqiang on Wednesday said considering the special circumstances at present, it is necessary to innovate the ways government officials hear comments and suggestions. By using video links, telephones and the internet, government officials particularly want to hear the expectations of market entities and the people, said a statement issued after Wednesday's meeting. The National People's Congress, the top legislature, is scheduled to open its annual session on May 22 while the National Committee of the Chinese People's Political Consultative Conference, the top political advisory body, will hold its annual session starting on May 21 after being delayed for more than two months by the epidemic. In the face of the "extremely arduous and complex" situation this year, it is imperative to pool even more wisdom and strength from national lawmakers and political advisors in order to improve the government's work, said the statement, calling for turning the suggestions into policy outcomes to solve tough problems. Officials of relevant State Council departments are ordered to tune in live to the deliberation of the government work report by lawmakers through video links, take notes of the comments and suggestions, and do research and respond if the issues are under their purview of responsibilities. Hotlines must be set up in all departments to receive calls from lawmakers and political advisors, the statement said. Items listed in the briefings of the national legislature and the top political advisory body concerning the government's work must be promptly collected and forwarded to relevant departments for a response, it added. ^ top ^

Team sent to investigate newly locked-down city (China Daily)
2020-05-13
The National Health Commission has sent a team to Shulan, a county-level city in Jilin province that reported multiple domestically transmitted COVID-19 cases over the past few days, said Mi Feng, spokesman for the commission, at a news conference on Tuesday. From May 7 through Monday, the city reported 15 confirmed cases, all domestically transmitted. The team will assist with treatment and with an epidemiological investigation. "Domestically transmitted cases and cluster infections are a reminder that there should be no relaxation in the vigilance of anti-epidemic work," Mi said. According to the local government, the city, which is now under lockdown, has taken measures including limiting traffic and closing amusement parks, libraries and internet cafes. Vehicles are strictly restricted on roads, with exceptions being made for those transporting daily necessities and farming materials. Video footage that went viral showed several pesticide sprayers disinfecting empty streets. Schools that had resumed classes were shut down again, and senior students have returned to their online classes at home. Residential communities have also imposed stricter rules. No outsiders are allowed in, and only one person of a household can go out for daily necessities each day. The gate pass records their name, gender, number of family members, contact information, address and frequency of daily departures and entrances. Other residents are not allowed out of their community unless they need to see a doctor or handle an emergency. Zhang Yu, a 24-year-old Shulan resident, told Chutian Metropolis Daily - a newspaper based in Wuhan, Hubei province - that he stored a lot of food at home and hasn't been out for a few days. "Food supply is sufficient in supermarkets, because no one has ever complained of a shortage," he said. The local government announced on its WeChat account on Monday that abundant food and materials are offered at normal prices through stable and smooth supply chains. On Thursday, a confirmed case in Shulan broke the city's streak of no cases reported for 73 consecutive days. On Saturday and Sunday, 14 new locally transmitted infections elevated the city's risk of epidemic prevention and control from low to high. ^ top ^

Probe into former aircraft carrier program commander unlikely impacts China's naval devt (Global Times)
2020-05-13
Hu Wenming, former chairman of China's shipbuilding conglomerate and former chief commander of China's aircraft carrier program, is being investigated for suspected serious violations of discipline and law, China's top anti-graft agency said Tuesday. Chinese military observers said on Wednesday Hu's case will unlikely impact China's naval development programs despite his significant role in the arms industry. Hu, former Party chief and chairman of the China Shipbuilding Industry Corporation (CSIC), is being investigated by the Communist Party of China Central Commission for Discipline Inspection and the National Supervisory Commission, according to a statement the commission released on its website on Tuesday. Born in 1957, Hu had worked in several major Chinese state-owned arms companies including military aircraft developer and manufacturer Aviation Industry Corporation of China (AVIC), armored vehicle and munition developer China North Industries Group Corporation (NORINCO), and China State Shipbuilding Corporation (CSSC) and eventually CSIC, according to the People's Daily. As the chief commander of China's aircraft carrier program, Hu oversaw the development of China's first domestically developed aircraft carrier and also the country's second one, later known as the Shandong, when it was commissioned into the Chinese Navy in December 2019. On August 30, 2019, Hu, then aged 62, retired from his position as CSIC's Party chief and chairman, the company announced then on its website.. CISC, now merged with the CSSC, was responsible for the research, design, production, testing and support missions for naval weaponry and equipment including aircraft carriers, conventional and nuclear powered submarines, surface vessels and underwater weapons, according to publicly available information. CSSC is currently building naval ships like the Type 055 large destroyers and Type 075 amphibious assault ships for the Chinese Navy. Reports also suggested it is responsible for China's third aircraft carrier development. Song Zhongping, a Chinese military expert and TV commentator, told the Global Times on Wednesday that Hu's case will not have any major impact on China's military programs. Each military project would involve many units, and the group company, namely the CSIC, is only responsible for the overall and comprehensive strategy, for which a collective decision-making mechanism is applied, Song said. Echoing Song, a Beijing-based military expert who requested anonymity told the Global Times on Wednesday that although Hu was the chief commander of the Chinese aircraft carrier project, the aircraft carrier is a complicated and high-tech project, and it requires the collective efforts of the whole team instead of one man, so China will continue to push forward its aircraft carrier projects as it has very mature, talented scientists and engineers. Hu is the former head of the CSIC, so he is not in charge of China's major naval projects anymore and the investigation into Hu won't have any impact upon current major industrial defense projects, the anonymous expert noted. "A great nation's national defense won't be shaken by a few problematic officials," he said. Hu's probe came after Sun Bo, former general manager of the CSIC, was probed by the CCDI in 2018. Sun was eventually sentenced to a 12-year jail term for corruption and abuse of power on July 4, 2019, according to the people.cn, website of the People's Daily. Song said while no major impact is expected due to certain individual cases, they have sounded an alarm on China's arms industry, because so many important projects could be involved. "Anti-corruption must always be at the forefront," Song said. ^ top ^

Encryption of personal information collected for COVID-19 prevention advised (Global Times)
2020-05-12
Many places in China have taken measures to deal with personal information leakage as some individuals' information has been improperly acquired and experts warned that with the COVID-19 epidemic coming under control in China, personal information that has been collected for prevention work should have encryption to decrease the risk of information leakage. Reports of individuals' personal information being exposed or misused have appeared recently, which raised concerns over the security of personal information. For example, the public security authorities in Qiangdao (should that be Qingdao?), East China's Shandong Province, released a notice on April 19, saying that more than 6,000 residents' information, including their name, address, identity number and phone number had been exposed, the Xinhua Daily Telegraph reported. In the early stage of fighting against the coronavirus, some places required individuals to register their information with residential communities, online applications or pharmacies, which increased the risk of misuse or leakage of the information, experts said. Qin An, head of the Beijing-based Institute of China Cyberspace Strategy, told the Global Times that some places over-collected personal information after the outbreak of the coronavirus. The current issue is how to properly store and manage the information. "Two situations should be avoided - information leakage and continuous collecting of residents' information," Qin said. He noted that since China's cryptography law has been implemented, all personal information should be stored after encryption to avoid disclosure. The public security bureaus in many places in China have dealt with cases involving illegally collecting and disclosing personal information. On March 5, Chinese authorities, including the Ministry of Civil Affairs and the Cyberspace Administration of China, required residential communities to ask for residents' permission before collecting information for prevention work. Authorities in South China's Guangdong have started supervision of online applications and set requirements for data and privacy protection for organizations that offer applications for prevention, the Xinhua Daily Telegraph reported. ^ top ^

China reveals large destroyer's replenishment training for 1st time (Global Times)
2020-05-12
The Nanchang, the Chinese People's Liberation Army (PLA) Navy's first Type 055 large destroyer, recently completed its first known maritime replenishment training, an operation that military experts said is crucial for the newly commissioned warship's combat capability. China's most advanced destroyer is soon expected to be put into action and accompany aircraft carriers in far sea operations, experts predicted. The supply ship Taihu and Nanchang recently conducted replenishment training, the PLA Navy announced on its Sina Weibo account on Monday. The post also came with a video of the operation. This is the first time a maritime replenishment training by the 10,000 ton-class Nanchang has been publicly revealed, the PLA Navy said. Beijing-based naval expert Li Jie told the Global Times on Tuesday that "The Nanchang is China's largest destroyer, and its significance, to some extent, is no less than an aircraft carrier." The replenishment training is an important part of its combat capability generation program, and since it is expected to conduct missions of an extended time period in the far sea and accompany aircraft carriers or lead independent naval task groups, it needs to be capable of conducting replenishment operations through supply ships, Li said. After making its public debut at a naval parade in April 2019, the Nanchang was commissioned into the PLA Navy at a naval port in Qingdao, East China's Shandong Province on January 12, 2020. In late April, it conducted a real combat oriented training, including main gun fire in waters off Qingdao, according to publicly available reports. Following these training subjects, the Nanchang is soon expected to form initial combat capability. "After gaining combat, replenishment, far sea endurance and command and communication capabilities, it will not be long to see [the Nanchang] in action," Li predicted. Chinese military enthusiasts are eagerly waiting to see the Nanchang operate with the Liaoning and Shandong aircraft carriers together. According to the PLA Navy, the Type 055 has a displacement of more than 12,000 tons. It has 112 vertical launch missile cells capable of firing a combination of surface-to-air missiles, anti-ship missiles, anti-submarine missiles and land-attack missiles, making it one of the most powerful destroyers in the world, analysts said. In addition to the Nanchang, China has launched at least five more Type 055 destroyers in the Dalian Shipyard, Northeast China's Liaoning Province, and Jiangnan Shipyard in Shanghai. Two more are reportedly under construction, military observers said. ^ top ^

Chinese scholar calls for political reform, criticising 'tight control' over Covid-19. A day later, police come for him (SCMP)
2020-05-11
A constitutional scholar has been taken away by China's authorities after writing an open letter to representatives of the country's legislature, criticising the government's handling of the coronavirus outbreak and calling for freedom of speech. Zhang Xuezhong was removed from his Shanghai home on Sunday night, according to multiple sources. His letter, posted on WeChat on Saturday and addressed to deputies of the National People's Congress (NPC), was widely circulated online as China prepares to convene its most important parliamentary sessions in less than two weeks' time. "He was taken away on Sunday night. Three police cars came to his house," said Wen Kejian, an independent political analyst and a close friend of Zhang. Another of Zhang's friends, who requested anonymity due to the sensitivity of the matter, also confirmed that Zhang had been taken. He said: "He is mentally prepared after his open letter." In his WeChat post, Zhang, 43, wrote alongside his attached letter: "The best way to fight for freedom of expression is for everyone to speak as if we already have freedom of speech." Multiple calls to Zhang's mobile phone and messages to his WeChat account by the South China Morning Post went unanswered. Calls to the Shanghai municipal police bureau were also unanswered. In his strongly worded letter, Zhang – a regular contributor to overseas newspapers and a well-known critic of China's political and legal system – said that in the absence of a modern constitution, China's governance was very backward, and "the outbreak and spread of the Covid-19 epidemic is a good illustration of the problem". Since first being reported in Wuhan, central China, in late December, the coronavirus has infected over 4.1 million people globally, killing more than 282,000. There were calls for freedom of speech in February, triggered partly by the death of Dr Li Wenliang, who had alerted colleagues in December about a pneumonia-like illness in Wuhan, only to be one of eight people reprimanded by police for "spreading rumours". Li, who was required to sign a document vowing he would "keep in line in thought and action" with the Communist Party, later died from Covid-19, the disease caused by the coronavirus. Zhang said in his letter: "Twenty-two days before the [lockdown to contain the outbreak] in the city, Wuhan was still investigating and punishing citizens who had disclosed the epidemic, including Dr Li Wenliang … showing how tight and arbitrary the government's suppression of society is." The letter said the Chinese political system had resulted in a lack of transparency and scrutiny. China has dismissed claims that it mishandled the outbreak, against accusations led by the United States that it had withheld information and allowed the outbreak to escalate into a global pandemic. Beijing has strongly denied a claim – referenced repeatedly by US President Donald Trump – that the outbreak's origin was linked to virus research lab in Wuhan. "Since January 3, 2020, the [Chinese] foreign ministry had been regularly notifying the US government about the epidemic, but the disease control department was not notifying the people of [China] at the same time. Such an irresponsible attitude towards their people's safety is rare," Zhang wrote. "There were few independent professional media to investigate and report on the outbreak, nor did medical professionals provide independent advice to the public … It only shows that the government's long-term tight control of society and people has almost completely destroyed the organisation and self-help capabilities of Chinese society." Zhang called on NPC deputies to turn the legislature into a "transitional authority" to create a broadly representative committee empowered to draft a constitution conforming to "modern political principles". He also urged the NPC to make resolutions to immediately release all political prisoners, end bans on political parties and non-state media, and enshrine that no political party should enjoy the status of a national public service institution. Zhang, who teaches an online constitutional class, was removed from his teaching post at East China University of Political Science and Law in 2013 because of his critical commentary on China's constitution, and was expelled from the faculty four months later. The university accused him of "forcibly spreading his political views to the school staff and teachers, and also using his position to spread his political views among students". A defence lawyer for Chinese activists including human rights lawyer Guo Feixiong and civil rights activist Liu Ping, Zhang was stripped of his lawyer's licence last year after the authorities said he was no longer employed by his law firm. ^ top ^

Leak of virus impossible, biosafety lab chief says (China Daily)
2020-05-12
A senior researcher at the biosafety lab and virology institute in Wuhan, Hubei province, said that strict security protocols have made it impossible for a virus to escape from the lab. "Our lab not only has a high level of biosafety infrastructure, we also have established a set of rigorous biosecurity protocols to ensure the lab operates safely and efficiently," said Yuan Zhiming, president of the Chinese Academy of Sciences Wuhan Branch and head of the Wuhan National Biosafety Laboratory. Yuan spoke in an interview with Science and Technology Daily that was published late Sunday. The remarks were made in response to conspiracy theories hyped by some US media and politicians. For months, some foreign media organizations and politicians have speculated that the novel coronavirus had escaped from the Wuhan Institute of Virology or its Bio-Safety Level 4 Lab, also known as the P4 lab. The Sino-French-built lab is believed to be the only facility in Asia capable of studying the world's most deadly and contagious pathogens, including the Ebola and Marburg viruses. The conspiracy theories resurfaced when some United States politicians, such as Secretary of State Mike Pompeo, recently claimed they had evidence showing poor management of the facilities that led to an accidental leak of the virus. The US has not released such evidence. Yuan said the P4 lab is a flagship facility run by the Wuhan National Biosafety Laboratory, which also operates two lower-level, P3 labs. These three labs, along with a number of P2 labs at the institute, form a bioresearch cluster dedicated to basic research in general virology. He said the core facility of the P4 lab is completely sealed off with stainless steel enclosure walls and pressurized environments to ensure no virus can escape from the "box-in-box" confinement. All exhaust from the rest of the lab must go through two powerful filters, and all wastewater must be boiled and properly treated, he said. Every piece of contaminated waste must be sterilized in high temperature pressure chambers before delivery to authorized institutions for disposal. As for personnel, candidates for positions at the lab go through meticulous training and pass annual physical and psychological assessments, Yuan said. They have to be screened and approved by the lab's director before starting work. Before entering the facility, all researchers have to report their health condition, wear full-body hazmat suits, and go through several steps of sanitization. They must strictly follow access procedures after entry. To eliminate human error, the lab must have at least two scientists working at any given moment. "Nobody can enter the lab alone," he said. The entire lab environment is rigorously monitored with security cameras and myriad biosensors that immediately alert the supervision center in case of an emergency, Yuan said. All physical equipment in the lab is examined annually by third-party institutions, and the lab's operation must pass scrutiny by the nation's regulatory bodies every year. Since Dec 30, the P4 lab has been tasked with isolating the novel coronavirus, as well as cultivating the virus for research using animals, Yuan said. Now, the lab is working on evaluating plasma and antibody treatments, testing disinfectants, evaluating antiviral drugs' potency in animals and developing an inactivated vaccine with dead viruses. "This work has provided the vital groundwork for studying the virus' contagiousness as well as evaluating various antiviral drugs and vaccines against the disease," he said. Guan Wuxiang, deputy director of the Wuhan Institute of Virology, said that the institute had fully sequenced the virus' genome and was one of the institutions authorized by the National Health Commission to release genetic data to the World Health Organization on Jan 11. It partnered with medical companies in Guangdong province to create nucleic acids tests and antibody tests. The institute also found drug candidates, such as chloroquine phosphate and Favipiravir, that showed potential to inhibit the virus in vitro, Guan said. Scientists worldwide have said on multiple occasions that current human technology cannot artificially create something as intricate as the novel coronavirus without leaving any trace of tampering with its genome or without knowing its full genetic makeup in advance. All available evidence shows that the virus is natural in origin, the World Health Organization has said. ^ top ^

Beijing ban on aerial vehicles suggests two sessions shortened to 7 days (Global Times)
2020-05-15
The Beijing Public Security Bureau has released a notice banning aerial vehicles in the capital's administrative area from May 20 to 28, which observers said implied the upcoming annual two sessions will be shortened to seven days. Beijing Daily reported on Wednesday that the move aims to strengthen the management of aerial vehicles of low altitude, low flight speed and small radar reflection area in order to ensure air safety during the two sessions - the plenary session of the National People's Congress (NPC), the country's top legislature, and the annual session of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), the top political advisory body. This year's two sessions have been postponed to late May due to the COVID-19 epidemic. The CPPCC session is scheduled to kick off on May 21, while the NPC session will start on May 22. There has been no specific information on how long this year's sessions will last, but observers said the notice from the Beijing Public Security Bureau implied that this year's two sessions will be shortened from two weeks to seven days. According to the notice, all flying of balloons for sports events, entertainment and advertisements has also been banned from 0:00 of May 20 to 24:00 of May 28. For other kinds of flying activities, individuals and organizations have to apply to the related department of the military and Civil Aviation Administration of China. NPC deputies from Hubei Province have been in group quarantine since Wednesday, a source told the Global Times. An official from Gansu Province who will come to Beijing with deputies and members told the Global Times that Gansu deputies will arrive in the capital on May 20. ^ top ^

Restrictions on all-cargo flights at Beijing airports lifted (China Daily)
2020-05-14
China's civil aviation regulator has lifted restrictions on the operation of all-cargo flights at Beijing Capital International Airport and Beijing Daxing International Airport. All airlines can now operate all-cargo flights at both airports, the Civil Aviation Administration of China (CAAC) told Xinhua Wednesday. Previously, only China Postal Airlines was allowed to operate at both airports, while other airlines could choose only one of the two. The CAAC cited the growing needs of cargo transportation and the handling capacity of the two airports as factors behind its decision to lift restrictions. Beijing Daxing International Airport opened to flights in September 2019. Data shows that China maintains regular all-cargo flights to 102 overseas destinations in 49 countries. In April, the weekly average of regular all-cargo flights operated by Chinese and foreign airlines stood at 1,574. ^ top ^

All Beijing students set to return in June (China Daily)
2020-05-14
As Beijing's COVID-19 epidemic control and prevention work becomes routine, the capital's education commission released the timetable of school resumption for all grades on Wednesday. According to the commission, students in Beijing will gradually return to campus in June. "The students in the final year of senior high school returned to campus in late April, and those in their final year of junior high school just returned on Monday, which has been welcomed by students, teachers and parents," said Li Yi, spokesman for the Beijing Municipal Education Commission, at a news conference on Wednesday afternoon. Measures involving disinfection, transportation and temperature monitoring were taken to ensure the order and safety of school resumption in past weeks. Based on those experiences, other grades will gradually return to school after four months' leave due to the outbreak. According to the plan, students in Grade 6 in primary school, as well as all junior high and senior high school students, will go back to school starting June 1. Students in Grade 4 and Grade 5 will resume class on June 8, and those in Grade 1 to Grade 3 should get prepared for school openings and await further notice. The commission predicted that around 217,000 children will enter primary schools this year in Beijing. The authority has provided online service for parents to register their children or make other inquiries in order to reduce infection risks by face-to-face contact. The kindergartens in the capital can start operation on June 8, but parents can decide whether to send their children. Some parents who both have resumed work are eager to send their little ones back to kindergarten because they have had to ask their own parents to help babysit, which has caused inconvenience. Meanwhile, some other parents don't plan to send their children back to kindergarten because of health concerns. "I will keep my 4-year-old daughter at home for a few more weeks," said a mother surnamed Wang, who works at home for a media company at present. "I know that the situation is good enough, but I still want my kid to be less exposed to the public, especially in places where there will be a lot of contact with others." Colleges in Beijing are allowed to start classes on June 6 provided they have epidemic control and prevention capabilities. Lin Lei, a student who attends college in Beijing, said he wants to go back to campus so much. "The time at home is boring, and I believe my parents are already bored with me. I need to go back," he joked. On April 27, around 50,000 students in their final year of senior high school returned to class in Beijing, and about 80,000 students in their final year of junior high schools in Beijing went back to campuses on May 11. ^ top ^

US Senate passes Uygur Human Rights Policy Act (SCMP)
2020-05-15
The US Senate on Thursday passed legislation that would pave the way for targeted sanctions against government officials in China over alleged human rights abuses against Muslim ethnic minority groups in the country's northwest. The legislation directs the White House to submit a report to Congress within 180 days identifying those deemed responsible for torture, extrajudicial detention, forced disappearance and other "flagrant denial[s]" of human rights in China's Xinjiang Uygur Autonomous Region (XUAR). These individuals would be subject to sanctions, including the freezing of assets in the US and denial of entry to the country. Introduced by Republican Florida Senator Marco Rubio and New Jersey Senator Bob Menendez, a Democrat, the Uygur Human Rights Policy Act was passed under the Senate's unanimous consent rules, used to move non-controversial legislation without the need for a vote. Yet while there was no tally taken, more than two-thirds of the Senate had previously signed onto the bill as cosponsors, a significant show of bipartisan support in the 100-strong chamber. Among its backers were former Democratic presidential hopefuls Elizabeth Warren, Bernie Sanders, Amy Klobuchar and Kirsten Gillibrand. As well as its provisions on sanctions, the legislation also directs the US State Department to produce a publicly available report on the state of human rights in XUAR, including official estimates on the number of individuals detained in mass internment camps. Beijing claims that the internment centres are "vocational training centres", where individuals receive education on a voluntary basis, a claim that has been contradicted by a numerous high-profile leaks of internal government documents. Released by a consortium of media outlets in November, one set of leaked documents, known as the "China Cables", detailed stringent security measures to prevent "students" from escaping. Different versions of the bill were passed by both the House of Representatives and Senate last year. The legislation approved on Thursday removes a section on export controls that had been included in the version passed by the lower chamber by 407 votes to 1 in December. Following the Senate's passage of the bill, Rubio took to Twitter to call on the Democratic-controlled House to approve the bill within one day. Any further amendments brought by the House would require additional approval by the Senate. But should the House approve the legislation in its current form, it will travel to the White House, where US President Donald Trump must choose either to enact or veto the bill within 10 days. A presidential veto can be overturned by a two-thirds majority vote in Congress. Contacted soon after the bill's passage by the Senate, the office of House Speaker Nancy Pelosi did not immediately respond to questions about when, or if, she would seek to move the legislation forward. Pelosi is one of Capitol Hill's most vocal critics of China's human rights record, and has accused Beijing of carrying out "unabated abuse and repression" of the Uygur people. Any bills that have not been passed by both chambers and sent to the White House before the end of the current Congressional session in January, 2021 will be wiped off the docket. Amid the coronavirus pandemic, Congressional Republicans have adopted a more hardline approach when it comes to confronting China compared to Democrats, many of whom have expressed concern that language targeting the country risks stirring up anti-Asian racism in the US. But the Senate's approval of the Uygur Human Rights Policy act on Thursday, coming at a time when Congress has been largely focused on legislative responses to the pandemic, was a sign that substantial bipartisan consensus around some China-related issues continues to exist on Capitol Hill. "Today's action by the Senate sends a clear message that the United States will not be distracted and will not stand by as millions of Uyghur Muslims continue to be unjustly imprisoned, subjected to a mass surveillance state, and forced into labor camps by Beijing's autocratic regime," said Menendez. ^ top ^

Hong Kong authorities inquiring whether student volunteers covering protest involved child labour (SCMP)
2020-05-15
Hong Kong's Labour Department is looking into whether the case of a 12-year-old boy detained by police for covering a protest for online media involved child labour. The department said it had contacted the platform Student Depth Media to check whether any labour laws were breached and wanted a response by next Wednesday. "To clarify the matter, the department's labour inspection division sent an email to the media to explain relevant clauses of the Employment of Children Regulations and invite it to provide information," it said. "The department will take follow-up action depending on the actual situation." The regulations prohibit the employment of anyone under 13 and violators face a maximum fine of HK$50,000 (US$6,450). "A child who works in any place of employment, whether for wages or not, shall be deemed to be employed," the department said. The boy was at the demonstration at Harbour City mall in Tsim Sha Tsui on Sunday, where dozens of people had gathered to chant anti-government slogans and sing protest songs. He was seen wearing a fluorescent press vest and live streaming the event with a cellphone. Officers took him away after accusing him of taking part in "illegal child labour" but he was later released without being charged. According to the Facebook page of Student Depth Media, the platform was formed by "eight young students from different secondary schools" in February and has close to 40,000 followers. Civic Party district councillor Andy Yu Tak-po, who provided assistance to the boy, said the child labour allegations were unreasonable, given the student was a volunteer. "You wouldn't say children raising funds for charities were doing child labour right?" Yu said. Student Depth Media said on Sunday its reporters were all volunteers from secondary schools and universities. Labour laws therefore did not apply, it claimed. Yu also accused the government of clamping down on student-led media outfits, which have been active in covering the protests sparked by a failed extradition bill last year. Barrister Albert Luk Wai-hung said the child labour charge only applied when there was a proven employment relationship. "Was there wages involved? Was there a supervisor telling him how to work?" Luk said. Authorities might also look into whether adults were involved in running the platform and if there were uniforms or staff cards that could suggest formal employment, he said. ^ top ^

Coronavirus: hundreds of Hong Kong households to be screened amid cluster fears after third member of family tests positive (SCMP)
2020-05-13
Hundreds of Hong Kong households will have to be screened for Covid-19 to tackle a potential new community cluster of infections after family members of a grandmother who contracted the coronavirus locally also tested positive. Health authorities were also ramping up testing to cover hundreds of workers at the airport as the city reported a new imported case on Wednesday, along with the case of the 66-year-old woman – the first local transmission in more than three weeks – and her five-year-old granddaughter. The woman's husband tested preliminary positive as well. Officials called for continued vigilance to minimise the risk of infection, but had no plans to reverse last week's easing of social-distancing measures and opening up of leisure venues, or to postpone the reopening of schools. The case of the grandmother was confirmed after a 23-day streak with no locally transmitted coronavirus infections, sparking concern about a possible resurgence of the disease in the city. The new local infections, along with the imported case, brought the total number in the city to 1,050. The imported case was a 43-year-old man, who returned from Pakistan via Doha on Qatar Airways flight 818 last Friday, and tested positive on Tuesday, having developed a fever at a quarantine facility. Dr Chuang Shuk-kwan, head of the communicable disease branch of the Centre for Health Protection, announced on Wednesday afternoon that her department would expand its testing programme to cover workers at Hong Kong International Airport, where 500 of them would be screened per day. Ground staff were considered high risk due to their close contact with inbound travellers, she said. Chuang said her branch was also devising a plan to extend testing to residents with mild symptoms in homes for the elderly, while a range of people who had been in contact with the grandmother and granddaughter needed to be tested as well. Undersecretary for Food and Health Dr Chui Tak-yi said the government, despite the new diagnoses, had no plan to reverse last week's easing of restrictions on public gatherings, as well as leisure venues such as bars and cinemas. He said experts around the world had warned that it was going to be a long battle against the pandemic, which required the government to adopt a flexible approach. "There cannot be just one heavy-handed approach to suppress, reduce or stop all activities in the long run because it is not practical. The government has other needs to consider including social welfare and economic ones," Chui said. From late March, the government imposed a ban on public gatherings of more than four people, and shut 11 types of business establishments. But the government relaxed the ban to groups of eight and allowed most of the businesses to reopen on May 8. The grandmother, who lives on a public housing estate in Tsuen Wan and regularly looked after the five-year-old at a nearby house, had not left Hong Kong for three months before she was confirmed to have the coronavirus on Tuesday. After she tested positive, seven of her eight family members required tests as they had developed symptoms, Chuang said. Many more were still to be tested. Before she was admitted to hospital, the woman had been to the Lei Muk Shue market. The staff at the stalls she visited would be screened, as well as residents of Block 5 of Lei Muk Shue Estate, where she lives, and Cheuk Ming Building, where the child stayed. A total of 860 households were expected to be tested. The five-year-old had recently been to a learning centre, Glory Learning House, on Sha Tsui Road. Staff and students who were there at the same time would also have to be screened, officials said. About a dozen families on her mother's side would also need to be tested, because the girl had been to her other grandmother's home at Charming Garden, Tai Kok Tsui. Education officials had announced in early May that senior secondary school students would go back to class on a half-day basis from May 27, followed by lower secondary, primary school students and pupils from kindergarten graduating classes in June. Professor Yuen Kwok-yung, a veteran microbiologist at the University of Hong Kong, said the new cases were alarming, as it meant the community could be facing multiple invisible transmission chains. He said it would be critical to monitor the situation over the next two weeks. "We know there is a hidden chain of infection in the community," Yuen told a radio programme on Wednesday. "Without locating the origin and breaking the chain, we cannot resume school." But Secretary for Education Kevin Yeung Yun-hung said plans for a phased resumption remained unchanged, although his bureau would continue to seek advice from health experts. School heads said classes could still resume if the new local cases remained isolated. Teddy Tang Chun-keung, chairman of the Hong Kong Association of the Heads of Secondary Schools, said many heads were still preparing for a return to classes in two weeks. "We have not ruled out that there could be isolated, individual local infected cases, even after classes resume in June or July … But if there was a community outbreak, it would definitely not be suitable to have face-to-face classes," he said. Cheung Yung-pong, honorary chairman of the Aided Primary School Heads Association, said it was difficult to stay at an "absolutely zero-risk level" and expected classes would resume as planned. Another infectious disease expert, Dr Ho Pak-leung, warned of more Covid-19 cases to come. He said the elderly woman might have been infected through contact with recent travellers, and urged health officials to check if anyone was under home quarantine at the woman's housing estate. Other experts said Hongkongers were facing the prospect of living with the coronavirus, as long as the number of cases remained low and well under control.. ^ top ^

Hong Kong police arrest 230 at Mother's Day protests, as local media groups slam treatment of journalists covering event (SCMP)
2020-05-11
Hong Kong police made a mass arrest of some 230 people at protests on Mother's Day – the largest in months – as two groups representing local media hit out at officers' handling of reporters covering the anti-government demonstrations. Police sources said the "containment and mass arrest" strategy was intended to have a deterrent effect on protesters, while the "early intervention" technique of stopping and searching suspicious persons had been used to prevent large crowds from assembling. Sources separately revealed the force planned to shift 4,000 officers back to its core riot squad from Friday ahead of next month's protest anniversary. The Hong Kong Journalists Association (HKJA), meanwhile, has alleged that police had abused and insulted reporters covering the protests, while the Hong Kong News Executives' Association (HKNEA) expressed "extreme regret" over the violent handling of media members. "[There was] verbal abuse, and in some cases, reporters suffered from being pepper sprayed and were denied immediate treatment," HKJA chairman Chris Yeung Kin-hing said on Monday, adding some reporters had their bags searched and were told to turn off their cameras, a violation of internal police guidelines on facilitating news reporting. "They were insulting not only the reporters, but the [whole] profession." The anti-government protests, sparked by the now-withdrawn extradition bill last June, have shown recent signs of resurgence as the city's coronavirus pandemic situation has improved. On Sunday, hundreds of people gathered in shopping malls to chant slogans and sing protest songs, while a smaller group of protesters tried to block roads by setting trash on fire in Mong Kok as dusk fell. Police responded by dispersing the crowds and making arrests, cornering reporters in the process, some of whom were hit by pepper spray. The force said on Monday that some 230 people aged 12 to 65 had been arrested for offences including unlawful assembly and possession of weapons, adding tickets were also issued to 19 people for violating the public gathering ban. Among those arrested on Sunday was Democratic Party lawmaker Roy Kwong Chun-yu, who was seen being pushed to the ground by a riot police officer before other officers pinned him down by kneeling on him. Kwong was later sent to the Queen Elizabeth Hospital for treatment. Kwong, who met the press at the hospital on Monday night after he was released, said a police accusation that he had thrown a water bottle was absurd, and that he felt lucky to have a witness who could confirm he had not. "The media experienced a very horrifying day yesterday … they were just covering [the protest], but were dispersed by police for no reason and shot with pepper spray," he added. Kwong, also a Yuen Long district councilor, said he would attend the council meeting on Tuesday and question Commissioner of Police Chris Tang Ping-keung, who was scheduled to show up. A police source, meanwhile, said he believed Sunday's protests were only a warm-up for four major anniversaries in the next two months, including Tiananmen Square on June 4, as radical protesters had not shown up. "It appears [the organisers behind Sunday's events] were testing the police response and how many people they could mobilise," the source said. On Sunday, plain clothes officers were deployed at different protest sites across the city to carry out surveillance and mount stop-and-search operations against those who acted suspiciously. Several journalists were also searched. Political scientist Dr Edmund Cheng Wai, of City University, warned that mass arrests would only backfire. "The more people you arrest, the more will be angered," he said, adding that more arrests alone would be unlikely to end protests. "It will sow more seeds of hatred." Cheng said he believed that some former protesters may have turned away from street demonstrations in favour of putting effort into election campaigns and running unions as alternative forms of resistance to the government. On Monday, Ming Pao, a Chinese-language newspaper in Hong Kong, also joined the fray, issuing a strong condemnation of police for "violently interfering with lawful reporting" by two of its reporters in Mong Kok, and demanding an explanation from the force. It said its employees and other reporters had been cornered by police, who did not provide a path to exit the scene. Despite following police orders to crouch, reporters were still hit with pepper spray, the paper said. Kyle Lam, a photojournalist, was among those cornered on Sunday night. He recalled reporters and members of the public being pushed from two ends of the street by police, with some losing balance and falling on each other. During the process, Lam said police taunted him by calling him a "black reporter" and repeatedly hitting him with pepper spray, despite his obeying orders to fall back. "It was intentional, and they wanted to hurt me," Lam said. Before reporters were let go, Lam said they were made to read out their names and ID numbers and display their press passes for a police camera. In a recent survey of 222 Hong Kong media workers, HKJA found 145 have faced violence from police and members of the public since social unrest erupted in June of last year. About 120 reporters said they had been verbally insulted and pushed by police and subjected to officers' strobe lights. Responding to a morning police statement that some reporters had been engaged in actions beyond the scope of their reporting, HKJA's Yeung urged the force to provide more details. Responding to a Post request for comment, police on Monday evening reiterated that they respect the right to report, but urged journalists not to get in the way of law enforcement. The force added that those who felt they were treated unreasonably could file complaints. Separately, HKJA published its annual press freedom index on Monday, which saw Hong Kong score a record low in surveys of the public and media workers. Both groups were asked to answer a set of 10 questions touching on self-censorship, work safety and government interference. The public's rating on press freedom dropped from last year's 45 to 41.9 – on a scale of 100 – while that of media workers' dipped to 36.2 from last year's 40.9. "Both the public and reporters expressed concern over personal safety threats against reporters … and difficulties in gathering information," the association said. ^ top ^

China firmly opposes Taiwan-related proposal to WHO by some countries (Xinhua)
2020-05-14
China on Thursday expressed firm opposition to a so-called proposal by a few countries to invite Taiwan as an observer in the upcoming session of the World Health Assembly (WHA), a foreign ministry spokesperson said Thursday. Spokesman Zhao Lijian said at a routine press briefing the insistence by some countries on discussing Taiwan-related proposals is only aimed at disrupting the assembly's agenda and undermining the joint international response to COVID-19. Due to the impact of the current pandemic, the 73rd session of the WHA, scheduled from May 18 to 19, will be held via video link, according to the World Health Organization (WHO), with its agenda condensed only to essential issues, such as COVID-19 and the executive board members selection. "This shows that the goal of the member states is to focus on the international collaboration on the joint response to the pandemic at the upcoming assembly," Zhao said. On the premise of the one-China principle, China's central government has made proper arrangements for Taiwan's participation in the global health affairs, to ensure its prompt and effective responses to local and global public health incidents, Zhao said. Taiwan's participation in the assembly must be in accordance with the one-China principle, Zhao said. "The refusals by WHA over the years to Taiwan-related proposals by a few countries fully demonstrate the popular consensus of the international community." ^ top ^

US Navy warship transits Taiwan Strait as PLA starts live-fire drills (SCMP)
2020-05-14
The United States sent a warship through the Taiwan Strait on Thursday as the Chinese military embarked on more than two months of live-fire naval drills off the mainland's northern coast. The passage by the USS McCampbell was the sixth through the strait by a US Navy vessel this year and comes a week before Taiwanese President Tsai Ing-wen, of the independence-leaning Democratic Progressive Party, is expected to be sworn in for a second term in office. According to Taiwan's defence ministry, the Arleigh Burke-class guided-missile destroyer transited the narrow body of water separating Taiwan from mainland China from north to south "in a routine mission". "It is continuing its southward voyage and the military is monitoring its movement through the intelligence it has gathered," the ministry said. In a statement on its Facebook page, the US Pacific Fleet said the McCampbell transited the Taiwan Strait as part of ongoing operations in the Indo-Pacific. Analysts said the passage was a response to the People's Liberation Army's increasing military activity near Taiwan and in the wider region. "This will become a new routine as a kind of US security commitment to maintain stability in the Indo-Pacific region," said Soong Hseik-wen, professor of strategic studies and international relations at National Chung Cheng University in Taiwan. The PLA has staged a series of war games, including fly-bys and warship transits through the strait, in recent months in response to what Beijing sees as growing pro-independence moves by the Tsai government and her party. China has also warned the US against supplying weapons to the island, which Beijing considers to be a wayward province that must return to the mainland fold, by force if necessary. Mainland China has suspended official exchanges with Taiwan since Tsai was first elected president in 2016 and refused to accept the one-China policy, which Beijing says must be the foundation for any talks. The PLA has embarked on 11 weeks of naval exercises off the coast of Tangshan in northern China, barring all other vessels from a 25km (15 mile) radius of the drill area, according to the China Maritime Safety Administration. Both Beijing and Washington have ramped up military activities near Taiwan in recent months during the coronavirus pandemic, moves that some observers say run the risk of miscommunication. Alexander Huang Chieh-cheng, professor of strategic studies and international relations at Tamkang University in Taipei, said no one could exclude the possibility of unintended incidents when both the US and the mainland were stepping up their presence in the region. "Rational analysts would however argue that the two nuclear powers are not likely to engage in or escalate to direct military conflict," he said. Huang said he believed cross-strait relations would worsen during Tsai's second term in office, which begins on May 20. "The already damaged relationship between Taiwan and mainland China has worsened since the pandemic mainly due to travel bans and Taiwan's increased international visibility," he said. On Tuesday, Japan's Kyodo News reported that the PLA was planning a large-scale beach landing exercise near Hainan province in August, simulating a takeover of the Pratas Islands, which are controlled by Taiwan and also known as the Dongsha Islands. In Taipei, Major General Lin Wen-huang said Taiwan was monitoring the PLA movements and "has contingency plans in place for the South China Sea to strengthen combat readiness and defence preparedness on both the Spratly and Pratas islands". Taiwan's coastguard also announced on Wednesday that its Pratas Islands Garrison was scheduled to conduct an annual live-fire exercise in June to ensure the "effectiveness of various mortar and machine-gun positions". Shanghai-based military commentator Ni Lexiong said that both the US Navy and PLA were increasing activities during the pandemic because neither side could afford to show weaknesses that the other might take advantage of. The destroyer's passage and the PLA's drills were all part of such efforts, Li said. But he agreed that both countries were unwilling, unable, and unlikely to have a real conflict. "They are both bluffing. It's a fake crisis," he said. "A pandemic always ends or prevents a war if you look at history. "I also don't believe the PLA would want to take over the Dongsha or Taiping islands [in the South China Sea], because these islets alone are not worth a military campaign and all the consequences of that. The only target valuable enough for the PLA is Taiwan." ^ top ^

Beijing urges France to cancel contract to sell arms to Taiwan (SCMP)
2020-05-13
China has called on France to cancel a weapons contract with Taiwan, warning that the deal with the self-ruled island could harm diplomatic relations between Beijing and Paris. "We stand against foreign arms sales to Taiwan or having military and security exchanges with the island, and this stance is consistent and clear," Zhao Lijian, a spokesman for the Chinese foreign ministry, said. "China has expressed grave concerns to France. We once again urge France to abide by the one-China principle, cancel its plan to sell arms to Taiwan, and avoid damaging Sino-French relations." The one-China principle is a policy advocated by Beijing stating that there is only one sovereign state under the name of China and both the Chinese mainland and Taiwan – whose official name remains the Republic of China – belong to one country. According to Taiwan's Ministry of National Defence, the island plans to upgrade the missile interference systems of the six French-built La Fayette frigates it bought about 30 years ago, which plunged ties between China and France to a historic low. The defence ministry said it had earmarked US$27.8 million for the acquisition of Dagaie Mk 2 decoy launcher upgrade kits and ammunition from France. Beijing's protest over the planned sale is among the latest moves by China to contain the island's international space. Taiwan has been widely praised for its success in containing the coronavirus outbreak and has received support for its wish to take part in the World Health Assembly, the World Health Organisation's (WHO's) decision-making body. But that has irked Beijing, which vetoes Taiwan joining the WHO because it says the island is part of China and therefore has no right to join international bodies. Beijing has also protested over military relations between Taiwan and other nations. France sold the six frigates to Taiwan for US$2.8 billion in 1991, causing a freeze in diplomatic relations between Paris and Beijing. Since the 2016 election of Tsai Ing-wen, from the independence-leaning Democratic Progressive Party, as the Taiwanese president, Beijing has tried to squeeze Taiwan by stopping official exchanges with the island, staging war games around it and poaching seven of its diplomatic allies. Beijing considers the democratic Taiwan to be a renegade province awaiting reunification, by force if necessary, even though the two have been ruled separately for more than seven decades. ^ top ^

Taiwan island will fall flat as US puppet: Global Times editorial (Global Times)
2020-05-12
The island of Taiwan is campaigning furiously to attend the World Health Assembly (WHA) meeting to be held from May 18 to 19. However, the situation does not favor it. Eight countries, including the US, jointly penned a letter to the World Health Organization (WHO) saying its director-general, Tedros Adhanom Ghebreyesus, can invite Taiwan as an observer to the WHA. However, the WHO responded explicitly that the director-general doesn't have the power to do so without the support of all WHO member states. Thirteen of Taiwan's "diplomatic" allies have called for an invitation to the island. But the WHO has 194 member states. The US should have known that the number of countries supporting the island as an observer is far from sufficient, so it just rallied some allies to pen a letter to not let the "Taipei Act" down. The Chinese central government has criticized island of Taiwan's move as using the ongoing coronavirus pandemic to seek "independence." There are many ways that the island can share its anti-virus experience, if any, with the rest of the world. The Chinese mainland has never interfered in Taiwan's technological exchanges with the WHO. Under the rule of Ma Ying-jeou, Taiwan joined the WHA meeting as an observer under the title of "Chinese Taipei." At that time, the 1992 Consensus was endorsed across the Straits, and one China was ensured. But Tsai Ing-wen authorities refuse to admit the 1992 Consensus and their intention to participate in the WHA meetings is politically driven. They will by no means be given the chance. As Washington is determined to use the Taiwan card to target Beijing, more US-provoked troubles regarding the island can be anticipated. The US has the strength and international mobilization ability to create waves. China should adopt different approaches and strengths to rival the US in this regard. What works for China is that the one-China principle has been universally acknowledged and is one of the foundations of the existing international order. Sticking to this principle is sticking to rules and morality. As for the US, its leverage lies in three aspects. First, the authorities of the Democratic Progressive Party (DPP) in Taiwan collude with the US; second, the US and its Western allies control the international discourse power; and third, with its strength, the US can coerce some countries to make them act in favor of the island of Taiwan. If the US agitates the Taiwan Straits with current tactics, it will have a limited impact on the one-China structure. But if it plays the Taiwan card with real actions, China may be propelled to strike back at whatever cost. Taiwan is a focal point of China-US rivalry that poses challenges to the two major world powers. It is important that Chinese society supports any action that China takes to safeguard its sovereignty. Yet, it is unrealistic to expect China to win in each round. The Chinese mainland's ability to resolve the Taiwan question via military means is becoming mature. Its comprehensive strength to cope with changes surrounding the question is also increasing. This is the foremost change in the situation vis-à-vis the Taiwan Straits. It is Beijing that tightly steers the wheel of the Taiwan Straits. Taiwan's so-called independent diplomacy has met its demise. The island is trying to return to the international stage as a US puppet, but it could only see mirages. Unless DPP authorities could move the island into the Caribbean Sea, its free ride of the US will eventually make it fall. ^ top ^

China's economic recovery quickens amid improving leading indicators (Xinhua)
2020-05-14
China's economic activities are picking up the pace of resumption, as shown by several leading indicators including the number of cargo volume, power generation and consumption, and excavator sales, reported Economic Information Daily Thursday. Data from the China Academy of Transportation Sciences showed that cargo transport rebounded to the previous average level in April as economic activities are accelerating restoration nationwide. In the period, the China Transportation Services Index stood at 131.5 points with the contraction narrowing 6.6 basis points from the previous month, and the sub-index for cargo transport fell 1.2 percent from a year ago. In another sign of recovery, daily electricity generation edged up 1.17 percent year on year last month to 18.21 billion kilowatt-hours, seeing a monthly growth of 3.01 percent. Amid the positive trend for the epidemic containment, growth momentum is also gathering in electricity consumption, which is expected to rise by 2 percent in April from the previous year, according to the State Grid Energy Research Institute. Transaction on the excavator market became more active, with sales for 25 leading excavator makers soaring 59.9 percent from one year ago to 45,400 last month, marking a growth rate of over 50 percent after 13 months, data from the China Construction Machinery Association showed. Considering investment growth in infrastructure and real estate sectors and the spread of the epidemic overseas, Lv Juan, an analyst with the China Securities, predicted a 17.74 percent growth in excavator sales in 2020. In May, this sector will maintain a year-on-year increase of more than 50 percent, Lv estimated. As domestic production and demand showed significant signs of recovery last month, several institutes expected macroeconomic data to further improve in the period, with the value-added industrial output returning to positive growth. ^ top ^

Coronavirus, growing China-Southeast Asia trade ties could drive offshore use of yuan: FSDC economist (SCMP)
2020-05-13
The coronavirus pandemic and US-China trade tensions are pushing China towards increased regional coordination in trade that may become a catalyst for yuan internationalisation, according to professor Ba Shusong, Chief China Economist of Hong Kong Exchanges and Clearing. "Compared to previous years, we see something has changed," Ba said on Tuesday at an online press conference organised by Hong Kong's Financial Services Development Council (FSDC). "While US-China trade has declined, this year is the very first time that Southeast Asia became China's biggest trading partner. So cooperation within the region is really strengthening." Ba, who is also a member of the FSDC's Mainland Opportunities Committee, said the trend could be to Hong Kong's advantage. The city could play an important role in providing professional financial services given its reputation as a global financial centre, he said. As countries and companies push for diversification of supply chains following the pandemic, Hong Kong could help development of new business channels by offering third-party accreditation services to support China's supply chains and trade connections with neighbouring countries such as Vietnam and Indonesia. "The shift in manufacturing supply chains, the adjustments, will mean a new set-up of opportunities and demand for financial services," Ba said. "We need to grasp these new trends to find Hong Kong's positioning to provide room for professional services." China's biggest export markets have traditionally been the United States and Europe, Ba noted. The comments come amid warnings by Chinese experts that a global economic realignment following the pandemic could lead to "de-sinicisation" and "de-renminbisation" – the exclusion of China and its currency – as an increasing number of countries follow the US in criticising Beijing for its handling of the virus. Officials from the US, Japan and European Union have announced or discussed plans to take production and investment out of China, which could lead to an acceleration of a global value chain realignment. Ba said Hong Kong could provide liquidity for yuan capital and asset transactions and play a pivotal role in China's Belt and Road Initiative. Financial innovations in cross-boundary investment and the free trade account system should be enhanced for offshore yuan products and for service demands from companies and financial institutions in Chinese Free Trade Zones, as well as the Greater Bay Area, Ba said. FSDC board member Ding Chen said Hong Kong should enhance its status as a leading offshore yuan business hub and further develop the offshore yuan asset market by enriching its range of offshore currency investment products and strengthening yuan corporate financial services. As the largest yuan financial hub in the world outside China, Hong Kong's average daily turnover of yuan real time gross settlements was 1.1 trillion yuan (US$155.1 billion) last year, while trading turnover under the Stock Connect schemes, which allow international investors to buy yuan-denominated A-shares traded on mainland exchanges, was 9.8 trillion yuan. Banks in Hong Kong began providing Chinese currency services to individual customers in 2004. In 2009, the Pilot Scheme for Settlement of Cross-border Trade in renminbi was launched, followed in subsequent years by other initiatives giving foreigners access to mainland exchanges, including the Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Bond Connect. But Ding said the number of different products in Hong Kong's yuan bond market remains relatively small, so there was room to improve the variety and increase the type of issuers in the city. For example, out of the total amount of outstanding yuan bond products, government yuan bonds and central bank yuan bills accounted for almost 75 per cent. Bank bonds accounted for an additional 14 per cent and only 10 per cent of yuan bonds traded in Hong Kong are corporate issues. "From the perspective of Southeast Asian countries, they may want to make investments for capital preservation and growth purposes using the yuan held as a reserve currency by their central banks," Ding said. "Hong Kong should provide a richer and more liquid range of yuan investment products for the region." China will need to attract inflows to compensate for a loss of funding as foreign-invested companies consider relocating to other countries in the years ahead. China is banking on up to US$1 trillion of new investment when a number of major global investment firms include yuan-denominated bonds and equities in their indices. Inclusion would automatically generate trades by foreign investors, since the rules of many investment funds require them to hold stocks and bonds featured in particular indices. But overall progress in having wider international use of the yuan has been hindered by China's strict capital controls. China's slowing economic growth, increasing production costs and depreciation in the yuan's exchange rate, are also concerns holding back investment and greater use of the currency by foreign investors. Yuan bank deposits in Hong Kong totalled 664 billion yuan at the end of March, down from 1 trillion yuan in December 2014. The yuan's exchange rate has fallen 2 per cent this year to about 7.09 per dollar over concerns of a re-escalation of China-US tensions. Recent hawkish exchanges between China and US have highlighted the risks of a spike in tensions of the near two-year-old trade war. ^ top ^

K-pop world domination is older than you think – I couldn't even escape it in North Korea 10 years ago (SCMP)
2020-05-15
One of the appeals of visiting North Korea is the chance to escape a lot of the trappings of modern society. We leave behind a world of advertising, of colourless high-rise complexes, of hyper-competitive consumer capitalism. We say goodbye to our phones and sign off on social media; at least that was the case on my first visit in 2010. And we are not subjected to K-pop – or so I had hoped. Living in South Korea, K-pop is foisted on us against our will all over the place: in public, on mass media and all over the internet, reminding us that women should be simultaneously demure and sexy, beauty is everything, and keep consuming. It is not pleasant for people who are immune to boy bands and girl groups dancing in unison. South Korea has been actively exporting idol groups in an effort to spread its soft power diplomacy. In those days, the big girl groups were Wonder Girls and Girls' Generation, and even people who hated K-pop could recognise their songs due to overexposure. On our way to North Korea, first we had to spend a night in Shenyang, China. The hotel we booked that was recommended for us turned us away, saying "No foreigners". We found another one last-minute and spent the night there. When we arrived at our hotel, the streets were quiet and dark. But in the morning, they came alive with activity. Near what I think was a department store we found a cluster of fast food restaurants, both domestic and foreign, including a McDonald's. Out in the street was a very Chinese-looking red-lined stage, on which four women – two in Chinese-style qipao mini dresses and two in silver bikini tops and miniskirts – danced to an upbeat pop song. And then I caught a couple of English words: "Nobody, nobody but you." It was Nobody by Wonder Girls, apparently a Chinese version of the original for the local market. I thought: "Even in China I can't escape this damn song." It made me more eager to reach North Korea, where surely I could finally escape the omnipresent drone of K-pop. We caught a taxi to the airport, one in which the right passenger door didn't shut and we had to hold it closed, anxious to be out of China and back in Korea – any Korea. I liked the idea of leaving behind K-pop for a week. But it was not to be. After landing in Pyongyang, we were brought to the Yanggakdo Hotel, located on an island in the middle of the Taedong River. This was the only place we had a relatively free run of on the entire tour. It had shops and various entertainment facilities, plus a brewpub in the lobby. The basement was divided into two sides – a Korean side that had bowling, billiards and a disturbingly low ceiling, and a Chinese side with a casino. Most nights there were spent in that brewpub. Once, on a trip to the washroom, I passed by the stairs leading down to the casino. An energetic pop song blared up at me, and I heard those lyrics, again, "Nobody, nobody but you." There was no escape. Even in North Korea, I was exposed against my will to K-pop. Granted, a casino serving mainly Chinese tourists, located in the basement of a tourist hotel on an island secluded in the middle of a river might not be the sort of place where the general North Korean population will be exposed to K-pop. And it's doubtful any of the sizeable budget set aside for pushing South Korean pop culture globally (amounting to 319 billion won in 2013) was earmarked for ensuring the transmission of K-pop songs in North Korea. But I took it as an implicit threat from the K-pop industry, that it can get to you no matter what country you are in. ^ top ^

DPRK lashes out at military drill by S. Korea, calling it "grave provocation" (Xinhua)
2020-05-11
A military spokesperson of the Democratic People's Republic of Korea (DPRK) lashed out at the recent military exercise carried out by Seoul, calling it a "reckless move" and "grave provocation," the official Korean Central News Agency (KCNA) reported on Friday. "This is a grave provocation which can never be overlooked and this situation demands a necessary reaction from us," KCNA quoted the spokesperson as saying. According to the report, the South Korean military staged a joint military drill on Wednesday "in the hotspot waters in the West Sea of Korea" with the involvement of more than 20 fighters and storm boats. Such a reckless move does not help the efforts to defuse tension on the Korean Peninsula, KCNA said, adding that "everything is now going back to the starting point before the north-south summit meeting in 2018." The DPRK's top leader Kim Jong Un and South Korean President Moon Jae-in met in the border village of Panmunjom on April 27, 2018. The two sides signed the Panmunjom Declaration, agreeing to complete denuclearization and begin a new era of peace. The Kim-Moon meeting was the third inter-Korea summit and the first in 11 years. ^ top ^

Exports decreased by 45.3 percent compared to previous year (Montsame)
2020-05-13
Total foreign trade turnover decreased by USD 1.3 billion (30.8%), of which exports decreased by USD 1.1 billion (45.3%) and imports decreased by USD 179.9 million (10.2%) compared to the same period of the previous year. In April 2020, exports and imports reached to USD 337.8 million and USD 424.8 million, respectively. Compared to the previous month, exports increased by USD 72.7 million and imports increased by USD 13.2 million. The foreign trade balance was in deficit of USD 212.7 million, while it was in surplus of USD 745.8 million in the first 4 months of 2019, and decreased by USD 958.5 million from the same period of 2019. Our two neighbors, China and Russia have the highest shares in total foreign trade turnover and trade with China reached USD 1.7 billion in the first 4 months of 2020, which is 58.5% of total trade turnover. Exports to China accounted for 89.5% of total exports. Bituminous coal and copper concentrates accounted for 26.3% and 39.6% of total exports to China, while gold accounted for 83.2% of goods exported to United Kingdom, fluorspar accounted for 92.1% of total export good to Russian Federation and animal combed hair accounted for 57.8% of goods exported to Italy. The USD 1.1 billion decrease in export was resulted from the decreases in exports of USD 115.6 million in gold, USD 215.2 million in copper concentrates and USD 629.0 million in coal. In the first 4 months of 2020, 31.8% of the total imports was from China, 30.1% was from Russia, 7.8% was from Japan, 5.2% was from USA and 4.2% was from Republic of Korea, which are accounting for 79.0% of the total import. The 52.3% of the total imports from Russia was petroleum products, 61.2% of the total imports from Japan was cars, and 8.2% of the total imports from China was electricity, 3.7% was trucks and 88.1% was imports of other products from China. The USD 179.9 million decrease in imports from the same period of previous year was mainly due to USD 19.8 million decrease in gasoline imports and USD 58.6 million decrease in diesel fuel imports. Exports of mineral products, textiles and textile articles, natural or cultured stones, precious metals jewelry made up 95.9 percent of the total export. On the other hand, 66.3 percent of the total imports was mineral products, machinery, equipment, electric appliances, transport vehicle and its spare parts and food products. ^ top ^

Foreign Minister meets WHO Representative in Mongolia (Montsame)
2020-05-12
Expressing his gratitude to the WHO for its continued support in preventing and combating the COVID-19 pandemic, Foreign Affairs Minister D.Tsogtbaatar said that the government was exploring the possibility of shortening the mandatory isolation period and introducing a mobile quarantine regime to help citizens overcome the economic hardships caused by COVID-19. WHO Representative in Mongolia S.Diorditsa praised the measures taken by the Government of Mongolia to prevent the spread of COVID-19 and said that he would continue to work with relevant local organizations in this field. He also expressed his readiness to support and cooperate with Mongolia's proposals to improve regional cooperation and increase the role of the WHO in the fight against global spread pandemic. ^ top ^

Sandro Wirth
Embassy of Switzerland