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China’s Recovery Continues But Wary Consumers Show Vulnerability

China’s economy continued to inch out of the coronavirus slump in May, though a reliance on industry amid sluggish consumer demand underlines the fragility of the recovery as further infections appear.To get more news about chinese industry and management practice, you can visit acem.sjtu.edu.cn official website.

Industrial output rose 4.4% from a year earlier, versus a median estimate of a 5.0% expansion. Retail sales fell 2.8%, compared to a projected 2.3% drop. Fixed-asset investment declined 6.3% in the first five months, versus a forecast 6% drop. The surveyed urban jobless rate fell to 5.9% from 6% the previous month.
A jump in cases in Beijing over the weekend has raised fears of a resurgence of the pandemic in China, threatening to blunt recent government efforts to revive the economy. Beijing has shuttered the city’s largest fruit and vegetable supply center and locked down nearby housing districts after nearly 100 people associated with the wholesale market tested positive for the coronavirus.

The Monday data showed the gradual recovery in China’s economy was still mainly driven by the supply side thanks to continued policy stimulus, while demand remains weak. Industrial production has rebounded from a contraction in February, while private consumption is still shrinking and investment hasn’t recovered.
“The recovery is on the track while mixed performance can be observed everywhere -- manufacturing still better than services, cars better than catering,” said Zhou Hao, an economist at Commerzbank AG in Singapore. “However, the virus concerns will cloud the economic outlook.”

While highlighting the moderate improvements in May and reiterating the pledge to strive to achieve the full-year economic and social development goals, the statistics bureau also acknowledged downside risks.

“The overseas epidemic situation and the world economic situation have become more severe and complicated, and the stable operation of the domestic economy still faces many risks and challenges,” the bureau said in a separate statement.

With the rest of the world in recession, exports dropping and China’s relations with the U.S. continuing to worsen, a rebound relies to a large extent on domestic consumption.

“It’s quite clear that production has recovered pretty nicely, but the consumption, as well as investment actually are lagging behind,” Shen Jianguang, chief economist at leading online retailer JD.com Inc., said on Bloomberg television after the data. “So it’s the lack of demand that’s the main problem of the Chinese economy right now.”

Output in the consumer goods sector shrank 0.6%, compared with the 0.7% increase last month, the statistics bureau said, while export orders were “insufficient.” The value of delivered exports shrank 1.4%, and dropped more than 10% in some important sectors.The People’s Bank of China supplied banks with 200 billion yuan ($28 billion) in fresh liquidity Monday while letting some previous loans expire, leaving the financial system needing further injections if a looming cash crunch is to be avoided. Economists say the chance for a reserve ratio cut in the near-term is increasing after the move.

Seton Hall University’s China MBA Program Alumni

Chinese students and alumni from the Stillman School of Business China MBA Program came together to donate personal protective equipment (PPE) to first responders, nursing homes and other health care facilities in Essex County. Through their collective efforts, the group raised a total of 489,384 Ren Min Bi (RMB) or approximately $69,122 to use towards essential items.To get more news about top mba colleges in China, you can visit acem.sjtu.edu.cn official website.

After the coronavirus started to spread in the United States, Jason Yin, professor and chair in the Department of Management, who oversees the China MBA Program, wanted to organize a donation drive among alumni and students in China. He collaborated with Dr. Longguang Shi, non-executive director of Viagold Capital, which provides international educational services, to find a China-based manufacturer that could produce protective equipment with any funds collected.

The drive received an overwhelming response from Stillman students and alumni in China. Many members of the community personally reached out to ask how they could contribute. One student wrote, "Coronavirus is the common enemy of all of humankind. It is not confined by borders. We have to unite and fight back the same way."

"All the MBA students and alumni felt the pain of their alma mater in the pandemic disaster and expressed their strong desire to help," said Yin. "They see this as a small token in return for the Seton Hall education they received."

Yin also said that Shi felt inspired to join the relief effort after connecting with so many Seton Hall students and faculty in China. He donated $14,000 on behalf of his firm.

Based on the considerable size of the donation, members of University Advancement, who helped coordinate the delivery on the New Jersey end, chose to distribute the supplies through the Essex County Sheriff's Office. The office serves as the local Federal Emergency Management Agency (FEMA) distribution center. The equipment will be accessible to frontline workers in over 20 municipalities throughout the County.

"Our public sector-private sector partnership with these generous and civic-minded institutions has resulted in our acquisition of vital equipment, which will be distributed to Essex County first responders who are now on the dangerous frontline in mitigating the potentially deadly impact of coronavirus on a daily basis," stated Armando Fontoura, Essex County Sheriff. "Seton Hall University and Viagold have proved their magnanimity, unselfishness and community spirit in helping us save the lives of our neighbors."

"We are pleased that our partners at Viagold and our alumni from China have chosen to help the Seton Hall community in such a meaningful way," added Sheila Wolfinger, University associate vice president for development. "Many of the frontline health care workers and first responders in Essex County are Seton Hall students, alumni, friends and parents, and this donation will directly impact their health and safety."

U.S. considers blacklisting China’s largest chipmaker

The Trump administration is considering imposing export restrictions on Semiconductor Manufacturing International Corporation, China’s largest manufacturer of semiconductors, according to a Defense Department spokesperson. To get more China breaking news, you can visit shine news official website.

The Department of Defense is in discussions over whether SMIC should be added to the Commerce Department’s entity list, which essentially restricts those companies from receiving specific goods made in the United States. The U.S. entity list now includes more than 300 China-based companies.

“DoD is currently working with the interagency in assessing available information to determine if SMIC’s actions warrant adding them to the Department of Commerce’s Entity List,” a Defense Department spokesperson said. “Such an action would ensure that all exports to SMIC would undergo a more comprehensive review.”

The potential move by the administration, which was first reported by Reuters, is part of a continued effort to put pressure on China’s technology firms and would mark a major escalation in the tech battle between Washington and Beijing. U.S. officials have long complained that Chinese tech firms are beholden to the People’s Republic of China and collect sensitive information on behalf of the People’s Liberation Army. The Chinese Communist Party has previously said that it does not engage in industrial espionage.

A report last month by SOS International, a Virginia-based defense contractor, claimed SMIC had ties to China’s defense sector, according to people who spoke to The Wall Street Journal. SOS also said Chinese military researchers have disclosed in research papers that they use SMIC technology to manufacture chips, The Wall Street Journal reported.

In a statement Saturday, SMIC said it was “in complete shock and perplexity to the news” and that it “provides services solely for civilian and commercial end-users and end-uses.”

“We have no relationship with the Chinese military,” SMIC wrote, adding “Any assumptions of the Company’s ties with the Chinese military are untrue statements and false accusations.”

“SMIC is open to sincere and transparent communication with the U.S. Government agencies in hope of resolving potential misunderstandings,” the firm wrote.

SMIC is viewed as a key player in China’s effort to boost its domestic semiconductor industry, an ambition that was accelerated by the U.S.-China trade war. Imposing export controls on SMIC would impact U.S. companies that sell chip-making technology to China manufacturers.

U.S. officials recently announced it will further tighten restrictions on China’s Huawei Technologies in order to crack down on the telecommunication company’s access to commercially available chips.

The restrictions prevent Huawei from obtaining semiconductors without a special license. SMIC is one of Huawei’s manufacturers.

As tensions grow worse between the U.S. and China, U.S. officials are pushing other governments around the world to place restrictions on Huawei, arguing that the company will give data to the Chinese government for spying. Huawei has denied that it spies for China.

More imported cases of COVID-19 in Shanghai trigger new circuit break concerns

Shanghai on Friday reported 16 new imported cases of COVID-19, triggering concerns of a new round of "circuit breakers" concerning inbound international flights. Although the city has now reported new imported cases of COVID-19 for 11 consecutive days, Shanghai health commission claimed that the city has the ability to handle the current imported cases and the public needn't panic. To get more shanghai coronavirus cases, you can visit shine news official website.

The 16 imported cases are from Russia, the Philippines, the UAE, Zambia and the Cote d'Ivoire. The confirmed cases were receiving treatment in designated hospitals and their 253 close contacts have since been put under quarantine, the Shanghai Health Commission said in its daily bulletin on Friday.

Shanghai faces a heavy task to prevent the virus as data from information provider VariFlight showed that from August 1 to 11 the inbound international passenger flights (excluding Hong Kong, Macao and Taiwan) at Shanghai Pudong International Airport accounted for 24.92 percent of all flights to China.

An official from the Shanghai health commission told the Global Times that, "Shanghai is capable of handling the current imported cases based on experience gathered previously, and the public doesn't need to panic, as Shanghai has mature closed-loop management requirements for all inbound passengers."

The official added that currently one focus is on the overseas nucleic acid test procedure and the other is on the implementation of the flight circuit breaker mechanism.Prevention and control of the imported cases of COVID-19 has become a challenge in China as the country has mostly controlled the epidemic domestically. The Civil Aviation Administration of China (CAAC) announced award and punishment measures to inbound flights for airlines based on the number of imported cases in a certain period.

If all passengers on one airline route test negative for three consecutive weeks, the airline will be permitted to add one more flight. If five passengers on a flight test positive, the responsible airline will have to halt operations for a week, and if 10 test positive it must suspend operations for four weeks.

The CAAC triggered three "circuit breakers" in one day on August 12 as passengers returned positive test results for COVID-19 on Etihad Airways flight EY862, China Eastern flight MU212 and Sri Lankan Airlines flight UL866. The flights will be suspended service for one week or two.

Following the resumption of overseas flights in June, more international carriers such as Air France, Air New Zealand and Delta Air Lines from European countries and the US are choosing Shanghai as their landing locations.

The Chinese mainland reported 30 new cases of the coronavirus on Thursday, of which 22 were imported, compared to 11 one day earlier, the country's health authority said on Friday. Of all 70 imported cases still hospitalized in Shanghai, 38 are from the UAE, 18 from the Philippines and two from Singapore.

The automobile sector is one among the many sectors, which has been severely hit due to the lockdown imposed because of the Covid-19 pandemic. Though, as soon as the lockdown was completely lifted in July, the car retailers recommenced operations with enhanced safety guidelines.To get more auto finance news, you can visit shine news official website.

Scores of people have lost their jobs due to the economic impact of the novel coronavirus. In general, people have gone into savings mode and are refraining themselves from the non-essential expenditure. However, according to the latest release from Experian (LON: EXPN), a global data analytics firm, there is a sigh of relief for the automobile sector as there is a huge rise in car finance applications for the month of July and August in comparison to previous months.

It seems that the battered sector is about to breathe a new lease of life. According to the data, there has been a considerable amount of surge in car finance applications. There is a section of the society whose income seems to be unaffected by the coronavirus crisis and who can afford to buy. Moreover, there are people who are uncomfortable using public transport as they want to avoid the risk of falling prey to the contagious virus.

The showrooms have reopened in June. Since then, car finance applications including both PCP (Personal Contract Purchase) and HP (Hire Purchase) agreements have risen considerably in contrast to the same period in 2019.

July witnessed a huge jump of 27.7 per cent in the number of car finance applications in comparison to the 2019’s figures. In addition, the first three weeks of August witnessed an increase of 18.6 per cent in car finance applications due to the release of pent up demand. Also, according to the UK’s largest credit check group, many people have searched for ways to finance a car purchase in the coming weeks on its online platform, which facilitates car finance deals.
The car manufacturing output for the UK had declined by more than 20 per cent in July, and close to 86,000 units were rolled off the production lines, as reported by the Society of Motor Manufacturers and Traders, which is the apex trade body.

Nearly all factories reopened with the ease in global lockdown measures, consequently, the month of July witnessed the rise in production levels as well. However, as per the Society of Motor Manufacturers and Traders (SMMT) data, it seems the shocks of the ongoing economic uncertainty coupled with the social distancing measures made its impact and the output remained low.

Production for the UK market witnessed a modest recovery in the month of July when compared to previous months of May and June, as a majority of the car showrooms of the country were able to open all over. Car exports declined, but the numbers were slightly less substantial -16.8 per cent to 72,262 units in July. The sector witnessed the demand for the latest cutting-edge models in the overseas market.

On the year to date scale, the coronavirus pandemic has severely dampened the UK market, demonstrating a loss of 307,707 cars (YoY), while the overall production turned lower by 39.7 per cent. In the year till July, overseas shipments suffered a sharp setback, declining by 38.5 per cent to 381,273 pieces.