Daily Briefs


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16 May 2022 | Monday | China Reader Evening Brief | Vol.1, No. 184

President Xi sends condolences to the UAE President

President Xi congratulated the new UAE President on his appointment whiles expressing China's condolences on the former leader's passing away.

IN BRIEF 
Avishka Ashok and Arshiya Banu

INTERNAL
Shanghai: Deputy Mayor announces gradual reopening of the city
On 16 May, the Asahi Shimbun reported that Shanghai would be reopening gradually after more than six week of lockdown caused by a sudden hike in COVID-19 cases. The Deputy Mayor Zong Ming said: “In the clearest timetable yet, Shanghai’s reopening would be carried out in stages, with movement curbs largely to remain in place until May 21 to prevent a rebound in infections, before a gradual easing.” Epidemic prevention measures will still be put in place until mid or late June, depending on the risks of rebound in cases in the city. The city’s authorities are also under pressure to reopen the city as the lockdown caused steep losses in the Chinese economy. (“Shanghai targets June 1 return to normal as COVID lockdowns cool economy,” The Asahi Shimbun, 16 May 2022) 

ECONOMY 
National Bureau of Statistics: Spokesperson reassures economic recovery
On 16 May, the National Bureau of Statistics Spokesperson Fu Linghui announced that the Chinese economy was bound to recover gradually as the country deals with the outcomes of the anti-epidemic policies. Fu said: “The country's economy took a hit from the domestic resurgence of COVID-19 cases in April, but the impacts are "short-lived and external.” He reassured the Chinese people and said that there were many favourable conditions for stabilizing the economy and that the fundamentals of the Chinese economy continues to the economic transformation. Fu stressed on the super-large market, complete industrial and supply chains and the sufficient domestic demand and explained that the economy was resilient to all contemporary challenges. He further used the example of the growing food grains and energy production despite the pandemic and reemphasized on the economy’s ability to bounce back. (“China's economy expected to recover gradually from Omicron impacts: spokesperson,” Xinhua Net, 16 May 2022)

Property sales: Industry experiences fastest fall in 16 years 
On 16 May, Reuters reported that the property sales in China fell at their fastest rate in 16 years despite the government’s policies and measures to ease the tensions in the property market. The value of sales fell by 46.6 per cent from the previous year and by 26.17 per cent from March 2022. The government has provided a cut in mortgage loan interest rates but the announcement made little difference to the current trend. Over 80 cities in the country have provided subsidies, smaller down payments, and reduction in interest rates since January 2022. The private sector in China has been experiencing a slump in sales since 2021. (“China April property sales post steepest drop since 2006,” Reuters, 16 May 2022)

Thermal coal industry: Government interference causes a fall in sales 
On 16 May, Reuters reported that China’s thermal coal trade had been suspended after the authorities interfered to control the rising price of energy and raw materials. On the same day, Zhengzhou Commodity Exchange’s trade was only 27 lots, which otherwise records close to one million lots. The company’s data revealed that figures recorded a 99.9 per cent drop in the daily volume since 2015. The government introduced “reference price range” for long-term and spot thermal coal trades in February 2022. The authorities have also threatened to punish any price-pushing behaviour within the physical and future markets. (“China's thermal coal futures mute as Beijing reins in commodity inflation,” Reuters, 16 May 2022)

INTERNATIONAL
The UAE: Xi sends condolences to the UAE President
On 15 May, Xinhua Net reported that the Chinese President extended a message of condolence to the new President of the UAE Sheikh Mohamed bin Zayed Al Nahyan, following the death of UAE President Sheikh Khalifa bin Zayed Al Nahyan. Xi expressed deep sorrow for Sheikh Khalifa's death on behalf of the Chinese government and people, as well as in his own name, and offered profound condolences to his families and the UAE people. Xi stated that President Sheikh Khalifa had been committed to maintaining political stability and encouraging socio economic prosperity in the UAE and had earned the people's trust and love. He added that he was also dedicated to the UAE-China friendship and made active efforts to promote bilateral relations' growth, and that his death is not only a great loss for the UAE people, but also a great loss for the Chinese people. (“Xi extends condolences over passing of UAE President Sheikh Khalifa,” Xinhua Net, 15 May 2022)

The UAE: Chinese President commends new UAE President
On 15 May, Xinhua Net reported that Chinese President Xi Jinping congratulated Sheikh Mohamed bin Zayed Al Nahyan on becoming the president of the United Arab Emirates (UAE) and stated that bilateral relations have been developing since the two nations established diplomatic ties. Xi added that the two sides have always strongly backed each other on issues touching their respective core interests and key concerns, maintained successful practical cooperation in numerous fields, and made notable accomplishments in the joint fight against the COVID-19 epidemic. He said that the development of China-UAE relations is very important to him and that he is willing to work with the new President to enhance the China-UAE comprehensive strategic partnership for the benefit of the two countries and their people. (“Xi sends congratulatory message to new UAE president,” Xinhua Net, 15 May 2022)

Italy: Shipping expert discusses BRI benefits
On 15 May, Xinhua Net reported that the deputy manager of the China Ocean Shipping Company (COSCO) in Italy, Marco Donati, stated that the Belt and Road Initiative (BRI) launched by China has a favourable impact on the global economy in general and the logistics sector in particular, and various nations, including Italy, could take advantage of its vast potential. According to Donati, the BRI is a two-way traffic road that benefits all of its partners, in terms of logistics and commerce. He said: "This road, which was built to improve logistics, is, as all roads are, bidirectional. It surely helps Chinese-manufactured products to reach Italy, Europe, the whole world, but it also helps our products to reach a huge market in a faster and smoother way." (“Interview: BRI delivers mutual benefits, says Italian expert,” Xinhua Net, 15 May 2022)

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