Daily Briefs


Photo : AFP/SCMP

China Reader Evening Brief I 18 October 2021, Monday I Vol.1, No.15

China's growth slows by 4.9 per cent in the third quarter, says SCMP

According to a SCMP report, "China’s economy had staged an impressive recovery from the impact of the coronavirus, but is now faced with numerous headwinds, including a property slump, energy crisis..."

IN BRIEF
By Avishka Ashok, Keerthana Nambiar and Dincy Adlakha 

INTERNAL
President Xi calls the development of archaeology with Chinese features
On 17 October, China celebrated the 100th anniversary of the Yangshao Culture and the establishment of modern archaeology in Sanmenxia in the Henan province. President Xi Jinping shared a congratulatory note on occasion and encouraged the development of archaeology that showcases Chinese features, style and ethics. He encouraged the Chinese archaeologists to focus on these aspects to display the significance of the Chinese civilization and its contributions to history. He said: "Over the past 100 years, generations of archaeologists have made a series of major discoveries through tireless efforts, playing an important role in making the extensive and profound Chinese civilization better understood." ("Xi calls for developing archaeology with Chinese features," Xinhua Net, 17 October 2021)

People's Liberation Army conducts troop transport exercise
On 17 October, Global Times reported that the Chinese People's Liberation Army conducted an integrated military-civilian cross-sea troop manoeuvring exercise to prepare for future battles. The exercise used a large civilian ferry and transported more than 1000 personnel and vehicles and crossed 1000 kilometres. The exercise also included the transportation of several vehicles such as the type 96 main battle tanks, type 04 infantry fighting vehicle, tactical assault vehicles and other support vehicles. ("PLA practices cross-sea troop transport with large civilian ferry," Global Times, 17 October 2021)

China's coal mining back on track in Shanxi province
On 17 October, Global Times reported that North China's Shanxi province, Beijing's coal hub is back on track after the heavy rains. "With the province's coal exploration and deliveries emerging from the heavy rains, optimism about a recovery in the country's coal supplies during the fourth quarter is on the rise, according to industry insiders, citing a government-led tenacious push to ensure energy adequacy and market shifts expected already under way," says Global Times. The report discusses the trucks full of coal from local mines in Shanxi and transported through expressway because of mudslides in the region. The improvement in terms of coal supply is helping to bridge the gap between demand-supply expecting a boost in the fourth quarter of the financial year. ("China's coal hub Shanxi emerges from floods, easing coal supply concerns," Global Times, 17 October 2021) 

ECONOMY
China's third-quarter economic growth stalls by 4.9 per cent
On 18 October, the National Bureau of Statistics (NBS) said, "the domestic economic recovery is still unstable and uneven." China's economy showed an impressive improvement from the last year's pandemic affected economy, but the equity markets fell in the third quarter with a GDP of 4.9 per cent in Jul- September. The electricity shortages and the production cuts in September sandwiched with the climate targets affected the growth. China's growth in Q1 was 18.3 per cent and Q2 was 7.9 per cent. It is estimated that China's GDP growth will face further pressure in the Q4 due to disturbances in the global supply chains, dragging the 2021 GDP growth. ("China GDP: economic recovery stalls, growth slows to 4.9 per cent in third quarter," South China Morning Post, 18 October 2021)

TECHNOLOGY
Chinese virologist suggests a probable difference in progenitor for SARS-CoV-2
On 18 October, Global Times reported that a renowned virologist from Duke-NUS Medical School in Singapore presented his study on the origin of the SARS-CoV-2 virus. Wang Linfa, the virologist, reiterated that the virus was not manmade and that the lab-leak theory was unfound due to the same reason. While agreeing that the virus is traced back to the bats, he specified that the place of origin may be different from the first outbreak of the disease. He also explained that the progenitor virus for the SARS-CoV-2 could lead to different results. He said: "Although it was Wuhan which experienced the first outbreak of SARS-CoV-2, the virus is highly likely not from there. He hinted that Southeast Asia might be the place of origin for the virus. ("Renowned virologist calls for shifting attention to finding SARS-CoV-2 origins in Southeast Asia," Global Times, 18 October 2021)

REGIONAL
The Straits Times reports on lost businesses in Hong Kong
On 17 October, The Straits Times, a popular daily in Singapore, reported that many retail dealers dependent on Chinese tourists had closed shop since the third quarter of 2018. The report emphasized that businesses, especially from medicine, jewellery, cosmetics, clothing and leather goods industries, have closed down as the number of Chinese visitors have dwindled down due to the pandemic. The report also pointed that even before COVIS-19 hit, Chinese tourists to the financial hub had reduced due to the atmosphere of protest and resistance which was reported as violent towards mainlanders in state controlled media. ("Chinese tourists' disappearance is remaking Hong Kong retail," The Straits Times, 18 October 2021) 

The Korea Times reports ripple effects in the Chinese economy
On 18 October, The Korea Times reported on the economic slowdown in China and cited a series of ripples caused by power shortages, construction slumber, and shocks suffered by investors and financial markets. China's economy grew only 4.9 per cent in the latest quarter, down from 7.9 per cent of the previous quarter. This figure was weaker than expected. The report provided an overview of the challenges that China is facing since the past few months, including Evergrande crisis and the coal import problems. The latest figures add pressure on Beijing. ("China's economic growth weakens amid construction slowdown," The Korea Times, 18 October 2021)

INTERNATIONAL
China's month old supersonic missile test surprises the US
On 17 October, Reuters reported, citing the Financial Times, that US intelligence agencies were caught off guard by China's supersonic missile test in August. The Chinese military had launched a rocket carrying a hypersonic glide vehicle with nuclear capabilities in August. The missile test has been said to be an outstanding advanced feat, leaving behind Russia and the US since it completed an orbit of the planet before firing for target. According to the report, the US intelligence agencies were unaware of these capabilities of China. Such hypersonic missiles are extremely sly weapons that are difficult to defend against. ("China surprises US with hypersonic missile test, FT reports," Reuters, 17 October 2021)

Australia suffers huge loss as China imports LNG from the US, says the Global Times
On 17 October, Global Times reported that Australia is at a great loss in energy trade with China as China eyes long-term liquefied natural gas (LNG) imports from the US. Multiple firms, including the oil giant Sinopec, are currently under discussions with US firms for LNG imports as huge four million tons, annually. As per the authorities from the oil industry, diplomatic tensions always impact international trade. China is working its way out from an energy and power crisis and is locking alternative sources of coal to break the crisis. It is also reported that many firms are importing US beef to replace Australian beef due to the tensions between Australia and China. ("Australia loses as China reportedly buys more US LNG," Global Times, 17 October 2021)

Xi Jinping's three-year-old promises to China-Africa trade
On 18 October, South China Morning Post reported on Chinese President Xi Jinping's promises to Africa. Xi had announced Chinese companies would be encouraged in investing in Africa, upgrading the economic zones and increasing the imports of African non-resource products. He pledged US$60 billion to the African countries as an aid as well as loans as an investment for the period of three years. In 2019, China-Africa trade was up to US$208.7 billion. Beijing majorly imports raw materials like crude oil, base metals, precious stones in exchange of electronics, equipment, machinery, and textiles. ("China, Africa and the 3 years since Xi Jinping promised to rebalance trade," South China Morning Post, 18 October 2021) 

Other Daily Briefs