Day: May 13, 2022

Chinese Premier Li Keqiang has suggested that China’s current job market is “complicated and severe” as the country maintains “unswerving adherence” to the “zero-COVID” policy, whose lockdowns are causing a severe economic contraction throughout the nation.

Derived from a survey of 430 private industrial companies, the Caixin purchasing managers’ index, a reliable indicator for assessing the economy, fell to 36.2 in April from 42 in March, according to a survey released by IHS Markit last week. A reading below 50 indicates contraction, while anything above that gauge shows expansion.

“Demand was under pressure, external demand deteriorated, supply shrank, supply chains were disrupted, delivery times were prolonged, backlogs of work grew, workers found it difficult to return to their jobs, inflationary pressures lingered, and market confidence remained below the long-term average,” said Wang Zhe, senior economist at Caixin Insight Group.

“Keeping market players and securing jobs will win the future,” Li said Saturday, during a national video and teleconference on stabilizing employment, according to the China Daily, a state-controlled news outlet.

Li, who holds the number two position in the Chinese Communist Party (CCP), urged all regional government departments to “conscientiously implement the decisions and arrangements” of the party’s Central Committee and the State Council to maintain jobs and economic stability.

“Stabilizing employment is critical to people’s livelihood and is the key support for the economy to run within a reasonable range,” he said, as he recommended steps for local and provincial governments.

Li asked enterprises to resume production while adhering to the controls designed to contain the spread of COVID-19.

Lockdowns in more than 20 cities, including Shanghai, have frustrated residents and constrained China’s economic growth. WHO Director-General Tedros Adhanom Ghebreyesus said on Tuesday that China’s zero-tolerance strategy was not sustainable, a comment Foreign Ministry spokeperson Zhao Lijian called “irresponsible” a day later.

Global banks such as UBS, Standard Chartered, DBS, Barclays and Bank of America have downgraded their 2022 GDP (gross domestic product) forecasts for China.

China’s first-quarter GDP for 2022 expanded by 4.8% year-on-year, higher than expected but still below Beijing’s full-year target of 5.5%, according to Xinhua, a state-affiliated news outlet.

Liu Meng-chun, managing director at Chung-Hua Institution for Economic Research in Taipei, Taiwan, said the slowdown is attributable not only to China’s COVID policies but also to a crackdown on private enterprise, especially in the technology sector.

He foresees the state taking a financial stake in some of the technology giants to get more control over their operations but said the change would be more one of style than of substance.

“If 1% equity is used to enter the core decision-making circle of its (technology companies) and becomes internal supervision, it represents a change in the supervision model,” Liu said.

Ming-Fang Tsai, a professor at the Department of Industrial Economics at Tamkang University in Taipei, said that even if Beijing stops suppressing tech giants, it would be difficult to return to the era of rapid economic growth.

“Alibaba and Tencent are laying off workers significantly, and now (Beijing) has said that it will stop (the suppression). It will not have any impact on China’s economy,” Tsai told VOA Mandarin.

The tech layoffs fit into a larger picture as China’s economy has been hit by the “five crises” of employment, exports, private investment, real estate and debt defaults, leading its economy into a downward cycle, according to Wu Jialong, a Taipei economist.

Reduced demand for China’s exports, “will reduce employment, income and consumption power, which will affect real estate,” Wu said. “In addition, industrial supervision and common prosperity will also make things worse, which will hurt the willingness and ability of private investment and eventually lead to a crisis of debt default.”

According to Taiwanese economist Liu, if China’s zero-COVID policy lasts for a long time, industries such as real estate, finance and technology will be hit hard, as will retail and consumer services. The combination, he said, will delay the country’s “common prosperity” campaign launched by President Xi Jinping.

“The control of the epidemic will make income distribution more uneven. Polarization will become more serious,” Liu told VOA Mandarin.

According to Frank Tian Xie, an associate professor of marketing at the University of South Carolina Aiken, even if the zero-COVID policy caused the Chinese economy to collapse, Chinese authorities would be more likely to return to the planned economy of the Mao Zedong era than to adjust to current forces.

“Now the CCP has launched a lot of ‘supply and marketing cooperatives,’ ‘unified purchase and unified sales,’ just to deal with the economic impact that the city lockdowns may bring, because it wants to suppress the people, and the government controls all goods, sources of goods and channels to achieve its political goals.” Xie told VOA Mandarin.

“Unified purchase and unified sales” refers to a policy implemented by China from the 1950s to the 1980s to exert state control over agricultural resources such as grain and cotton. The Chinese government purchased these products in rural areas and rationed them out to city dwellers.

In July last year, China began a pilot program of “supply and marketing cooperatives.” This recalls how the CCP acted as it established a government in 1949 during a post-civil war period of material scarcity.

Source: Voice of America

Africa, in recent years, has become the new frontier where China and the United States, the world’s two biggest economic superpowers, are competing for influence in a key industry: telecommunications.

This week, Ethiopia celebrated the launch of a 5G network powered by China’s telecom giant Huawei in Addis Ababa.

Just before that, on a visit to the continent last week, U.S. Deputy Secretary of State Wendy Sherman visited U.S. mobile company Africell’s offices in Angola, where the firm has amassed some 2 million users since it was launched just over a month ago.

“Today in Luanda, I visited @AfricellAo, an innovative, state-of-the-art U.S. company expanding 5G access in Angola with trusted technology components,” she wrote in a tweet.

Asked in a subsequent press briefing whether the tweet wasn’t a dig at Huawei – which already has a huge digital foothold in Africa but which was sanctioned in the U.S. in 2019 by then-President Donald Trump – Sherman was unequivocal.

“It’s not about throwing shade (being critical) on Huawei. We’ve been very direct. We believe that when countries choose Huawei, they are potentially giving up their sovereignty,” she said. “They are turning over their data to another country. They may find themselves bringing in a surveillance capability they didn’t even know was there.”

Washington has long expressed concern that Beijing is trying to monopolize networks and possibly use them for espionage, while Huawei has repeatedly denied the allegations.

“So, we’ve been very public about our concerns about Huawei, and so we are glad that Africell can provide to the people of Angola a safe, capable tool in their hands to reach out to the world,” Sherman added.

The deputy secretary’s comments raised ire in Beijing, where they were met with a stiff rebuke from Foreign Ministry spokesman Zhao Lijian.

“Chinese companies including Huawei have conducted mutually beneficial cooperation with many countries in Africa and the world beyond, contributed to the improvement and development of the countries’ communications infrastructure, provided advanced, quality, safe and affordable services for the local people and won great support,” he said on Chinese state media.

“There is not a single case of cyber security accident, surveillance or wiretapping in the course of the cooperation,” he added, going on to allege that the U.S. has long been responsible for such spying activities itself.

Zhao noted that it is up to African governments to decide with whom to cooperate.

In Angola, the company already has a significant presence, with mobile operator Unitel linked to Huawei, which is also building two technological training centers, worth $60 million, in the country in order to develop the digital economy.

And with Huawei widely available in South Africa, only one of the five people VOA spoke to at a local shopping center was even aware of the controversy over the brand.

Cheris Fourie, a sales consultant at a cellphone shop in Cape Town’s Blue Root Mall, said Huawei handsets aren’t that popular anymore, not because of concerns over any nefarious activities by the company, but rather because Google services are no longer on the devices. Google is no longer available because of a U.S. Huawei ban.

David Devillieras, who was sitting at a cafe at the mall using his Samsung phone, told VOA he’d never heard of the possibility Huawei was involved in surveillance. He added that he wouldn’t buy a Huawei phone having heard that.

“I wouldn’t go there at all, not for one second. I wouldn’t buy a Chinese phone,” he said.

One shopper, Steve Elliot-Jones, said he “wouldn’t trust anything that comes out of China,” but thought other countries could also be using mobile networks to spy.

“It wouldn’t surprise me if technology companies including the states or anywhere else for that matter… I wouldn’t say anyone’s actually innocent. I think they’re all probably all up to selling information and making money on the side and denying it if it comes out.”

Source: Voice of America

The United States and leaders from the Association of Southeast Asian Nations said Friday they would “redouble collective efforts” toward a peaceful solution in Myanmar.

“We reiterate our commitment to peace and stability in the region and continue to call for the immediate cessation of violence in Myanmar and for the release of all political detainees, including foreigners,” according to the US-ASEAN Joint Vision Statement issued late Friday.

While the joint statement made no mention of opening informal channels with Myanmar’s civilian-led National Unity Government (NUG,) senior U.S. officials and a few ASEAN foreign ministers had talks with NUG foreign minister Zin Mar Aung who is also in Washington this week.

Hundreds of thousands of civilians have been displaced since a military coup toppled the democratically elected government of Myanmar, also known as Burma, in February of last year.

This week, U.S. President Joe Biden hosted his first in-person summit with ASEAN leaders in Washington. There was an empty chair for Myanmar to reflect dissatisfaction with the military coup and violence in the country.

For some analysts, the gathering is seen as a show of solidarity as the United States competes with China for influence in the region.

It also comes as U.S. Secretary of State Antony Blinken prepares to outline the U.S. approach toward China in coming days.

On regional security, the US-ASEAN statement emphasized “confidence building” and the importance of “practical measures that could reduce tensions and the risk of accidents, misunderstandings, and miscalculation” in the South China Sea.

“Nothing new to see here,” tweeted Derek Grossman, a senior Rand Corp. defense analyst.

The Biden administration has announced $60 million in new regional maritime initiatives that include the transfer of ships to Southeast Asian countries to increase the coastal nations’ capacity to enforce maritime law and counter illegal, unreported and unregulated fishing.

ASEAN members Brunei, Malaysia, the Philippines and Vietnam claim parts of the South China Sea – a waterway claimed almost entirely by Beijing, which has landfilled and militarized islets over the past decade.

Friday, U.S. Vice President Kamala Harris said the United States will work with ASEAN to “guard against threats to international rules and norms” during a luncheon with leaders from the regional bloc. Harris denounced China’s “unlawful claims” on the South China Sea during a speech in Singapore in August.

The South China Sea was high on the agenda during the U.S.-ASEAN special summit, according to a senior State Department official.

“South China Sea is an issue of great concern,” said Deputy Assistant Secretary of State Jung Pak in an interview this week.

“We’ve seen increasingly aggressive and coercive actions by PRC against claimant countries. And, you know, we continue to work with all of our allies and partners in the region and beyond to make sure that the South China Sea is free and open,” she said.

The White House on Thursday announced new initiatives of more than $150 million that include investments in infrastructure, expanding maritime cooperation, health security, and education in ASEAN countries.

The US-ASEAN Joint Vision Statement also laid out plans to expand cooperation on COVID-19 recovery, fighting the climate crisis, stimulating economic growth, and deepening people-to-people ties.

Source: Voice of America

Despite U.S. President Joe Biden’s urging that Southeast Asian countries take a firmer stance on the Ukraine war, the U.S.-ASEAN Special Summit ended Friday without condemnation of Russia’s invasion of Ukraine, a sign of the geopolitical complexities in the region as the administration seeks to broaden the coalition against Moscow beyond Europe.

“With regard to Ukraine, as for all nations, we continue to reaffirm our respect for sovereignty, political independence and territorial integrity,” the summit communique said, followed by calls for an immediate cessation of hostilities and compliance with the U.N. charter and international law.

The Association of Southeast Asian Nations has avoided public criticism of Russian President Vladimir Putin’s invasion. ASEAN operates by consensus, and views on Ukraine vary among the bloc, which includes countries with deep economic and military relations with Moscow — such as Myanmar, Vietnam and Laos — and Singapore, the only one in the group to sanction Russia over the invasion. Others, including Indonesia, Malaysia and Thailand, seek neutrality.

In his summit remarks, Biden did not mention the Ukraine invasion at all. “An Indo-Pacific that is free and open, stable and prosperous, and resilient and secure is what we’re all seeking,” he said, referring to his administration’s strategy geared toward responding to the challenges posed by China’s increasing economic clout and military ambitions in the region.

The administration understands that ASEAN countries are vital partners in its regional rivalry against China, said Stacie Goddard, Mildred Lane Kemper professor of political science at Wellesley College. “It’s not willing to sour relations over a statement about Russian aggression,” she told VOA.

Even states with weaker ties to Moscow see Russia’s role as regional balancer. And as with U.S.-China competition, they would prefer not to have their interests damaged by competition between major powers.

“Fundamentally, for most ASEAN countries, the invasion is seen as far away and not worth taking a stand over,” Brian Harding, an expert on Southeast Asia at the U.S. Institute for Peace, told VOA.

Private pressure

U.S. officials have underscored that Ukraine is high on the summit agenda. But those conversations have not been made public.

“You don’t invite eight guests to fly halfway around the world to make them uncomfortable in front of a bunch of cameras,” said Gregory Poling, senior fellow for Southeast Asia at the Center for Strategic and International Studies.

Poling told VOA that the communique was stronger than earlier ASEAN foreign ministers’ statements on Ukraine, none of which included language about “respect for sovereignty, political independence and territorial integrity,” which he said are implicit condemnations of the Russian invasion.

However, Sarang Shidore, director of studies at the Quincy Institute for Responsible Statecraft, argued that Biden’s concession on Russia with ASEAN demonstrates that his framing of a global battle between “democracies vs. autocracies” has few takers in the region. The U.S. should expand its influence “through a confident geo-economic strategy rather than trying to exclude other players geopolitically,” Shidore told VOA. The U.S. is not offering market access through a free-trade agreement, which is what many in the region desire.

A guarded Indonesia ahead of G-20

“Our hope is to see the war in Ukraine stop as soon as possible and (that) we give the peaceful resolution of a conflict a chance to succeed,” Indonesian Foreign Minister Retno Marsudi said Friday, with no mention of Russia.

Indonesian President Joko Widodo, rotating president of the Group of 20 (G-20) — the grouping of the world’s largest economies — has resisted pressure to exclude Putin from the November summit he is set to host in Bali, despite the threat of a boycott by Biden and other Western leaders.

Jen Psaki, outgoing White House press secretary, declined to respond to VOA’s question on whether Biden pressed Widodo to disinvite Putin, reiterating only that Biden maintains his position that the G-20 “should not be business as usual.”

Source: Voice of America

SECRETARY BLINKEN: Well, good afternoon, everyone. It’s a pleasure to be here with the deputy prime minister of Cambodia. I really want to thank you, Deputy Prime Minister, and Cambodia for your leadership of ASEAN and for everything you’ve done to make this such a successful special summit between the United States and ASEAN.

We’ve had an opportunity to deepen the work that we’re doing together, and to put out – I think, a very important vision statement for the future, and Cambodia’s work to bring us to this point is greatly appreciated. We’re working very closely together as partners to try to advance a shared vision for the region, including regional security. And of course, we welcome the leadership role that you’re playing in ASEAN on a number of issues, including hopefully working to restore the democratic path in Myanmar.

So, it’s very good to have you here. Welcome again to the State Department.

DEPUTY PRIME MINISTER PRAK SOKHONN: Thank you very much, Secretary Blinken. It’s a real honor, pleasure to be here to have this meeting with you. It’s an opportunity for us to exchange views, especially to strengthen our bilateral cooperation. And it’s a wonderful for Cambodia as a chair to have been able to organize – co-organize this summit between ASEAN leaders and the U.S.

I am ready to have a good discussion with Secretary Blinken, in order to strengthen our bilateral relationship and to push forward for solution in a number of regional issues. Thank you.

SECRETARY BLINKEN: Thank you, everyone.

Source: US State Department

WASHINGTON D.C— Malaysian Prime Minister Ismail Sabri Yaakob met senior officials of major American companies here on Thursday (Friday in Malaysia).

The companies included Microsoft, Google, Tesla, Boeing, IBM, Texas Instruments, GE Aviation, Conoco Phillips, Ford, National Instruments, Infineon, Micron, and Insulet.

Ismail Sabri engaged with them during the meet and greet business session at a hotel here.

The premier, who arrived here on Wednesday, is on a four-day working visit to the United States.

The American senior officials included the president of Boeing for Southeast Asia Alexander Feldman, Tesla head of federal policy Hasan Nazar, and the corporate vice-president for public affairs of Micron Courtney Geduldig.

Others were the Cisco president for Asia Pacific, Japan, and China Dave West, Google vice-president for government affairs and public policy Karan Bhatia and Texas Instruments vice-president and head of global government relations Steve Bonner.

Malaysian Senior Minister of International Trade and Industry Mohamed Azmin Ali and Foreign Minister Saifuddin Abdullah were present too.

Among others, he witnessed the exchange of a memorandum of understanding between Malaysia’s Human Resource Development Corporation (HRDC) and three American entities, namely the World Innovation, Technology and Services Alliance (WITSA), Accenture PLC, and the Human Resource Certification Institute (HRCI).

The Prime Minister also witnessed a Letter of Intent (LOI) handover by Malaysia’s MyDigital Corporation to four American companies namely Cisco Systems Inc; Intel Corporation; Microsoft Corporation and Micron Technology Inc as well as handover of Malaysian Investment Development Authority (MIDA)’s approval letter to Advanced Micro Devices Inc for the company’s expansion in Malaysia.

Later, HRD Corp chief executive Datuk Shahul Dawood told the Malaysian media that the three MoUs it inked would enable better training for Malaysians.

“Their (American) expertise and training modules are rich in content with application of latest technology, which is key in talent development. Such exposure will boost our workforce’s demand regionally and internationally,” he said.

HR Certification Institute secretary Gardiner Hempel said they were willing to help develop Malaysians talent for all industries.

Secretary general of World Information Technology and Services Alliance (WITSA) Dr James Poisant said their training focus on how technology could help improve the human life.

“It is how to help people for their benefit,” he said.

Accenture managing director Allison M. Hord said her company was willing to share the reskilling and upskilling training with Malaysia.

Source: NAM NEWS NETWORK