China’s Manufacturing and Non- Manufacturing PMI Remained above Critical Point in July

By LIN Huocan

On July 31, the service industry survey center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing released the China purchasing manager index, or PMI. In July, the PMI of manufacturing industry was 51.1%, which continued to rise steadily; the non-manufacturing business activity index was 54.2%, which continued to remain above the critical point. The comprehensive PMI output index is 54.1%, which indicates that the overall production and operation of enterprises maintain the momentum of recovery growth.

Experts said that with the effective implementation of the overall pandemic prevention and development policies, China’s economic prosperity continued to recover, and the operating conditions of enterprises continued to improve. At present, China still need to do a good job in expanding domestic demand, effectively activate and release the investment and consumption potential of the domestic market, and push the recovery of China’s economy onto a more stable and solid track.

In July, the PMI of the manufacturing industry was 51.1%, which continued the trend of steady and rising last month, and was above the prosperity and withering line for five consecutive months. Among the 21 industries surveyed, PMI of 17 industries is higher than the critical point, 3 more than that of last month, and continued to boom.

For the 13 sub-indexes, compared with the previous month, 11 indexes such as production index and new order index increased by 0.1% to 5.8%, while the PPI and supplier-delivery time index decreased by 0.2% and 0.1% respectively.

Wen Tao, an expert at China Logistics Information Center, said that as of July, the PMI of the manufacturing industry had been operating at more than 50% for five consecutive months. In particular, the index rebounded to more than 51% in July, indicating an accelerated economic recovery. Judging from the sub-indexes, the trend of economic recovery has been strengthened, import and export continue to maintain the recovery momentum, and consumer goods and new energy industries grow rapidly.

On the whole, the non-manufacturing industry maintained steady and rapid growth, the business operation was stable, the sales price continued to rise, the enterprise expectations remained optimistic, and the positive changes in economic operation were further revealed, which is conducive to the continued economic recovery in the second half of the year.

China’s New Proposal on Development of New Infrastructure based on 5G Will Open a Great Window of Opportunity for China-ASEAN Digital Economy Cooperation

According to Aladdin D. Rillo, Deputy Secretary-General of ASEAN , global economic recovery post-pandemic will to a considerable extent depend on China that managed to avoid recession as it grew by 3.2% in Q2. Moreover, China’s new proposal on Development of #NewInfrastructure based on 5G will open a great window of opportunity for China-ASEAN digital economy cooperation and benefit both sides .

Aladdin D. Rillo said, the sudden stop of economic activities as a result of the COVID-19 pandemic, in particular, has led supply and demand to decline significantly, both within China and globally. China, is the second largest economy in the world, and the largest trading partner of ASEAN. ASEAN is also a major supplier of raw commodities and intermediate inputs to China for further processing and re-exporting to many other countries. Accordingly, if China’s economic growth dwindles, the global economy, including that of ASEAN, may also weaken.

However, global economic recovery post-pandemic will to a considerable extent depend in part on how fast China’s economy recovers. “There are some positive signs. China managed to avoid recession as it grew by 3.2% in the second quarter, after shrinking by 6.8% in the first quarter”, DSG noted. Its onward recovery, however, may be affected by how others are coping given China’s role as a major supplier to the global value chains.

Meanwhile, Aladdin D. Rillo noted that ASEAN believes that powerful, coherent, and secured 5G infrastructure is a necessity for ASEAN economies to embrace full potential of innovative and digital technologies in the era of the 4IR. It also supports the operationalisation of ASEAN’s on-going smart cities projects and many other digital initiatives that rely on the use of IOT, big data analytics, and AI technologies. ASEAN is currently working toward the establishment of guidelines for 5G ecosystem development in consultation with various stakeholders, including the public sector, academia, and the private sector.

The technical support of ASEAN Dialogue Partners, including China, through active collaborations, would effectively improve ASEAN’s capability to ensure the success of this effort. In this connection, the launch of the Year of ASEAN-China Digital Economy Cooperation by ASEAN and China in 2020 opens a great window of opportunity for both sides to enhance mutual cooperation in digital technology areas and to explore initiatives, including those in 5G infrastructure development with a view to promoting the digital economy in the region.

Mars, Here We come!

On 12:41, July 23, 2020, China’s first Mars probe Tianwen-1 carried by the Long March 5 launch vehicle is successfully launched at Wenchang space launch site in China, which marks the country’s first Mars exploration mission.

From Qu Yuan’s inquiry into the universe 2000 years ago till today’s launch of Tianwen-1, human beings have been exploring the mysteries of the universe for thousands of years. Mars, here we come! Only by constantly understanding and exploring the universe, can we be more inspired to protect our mother earth.

China is Building an”Iron Wall” to Cope With the Flood Season

Since the flood season, rainstorm and flood occurred frequently in southern China. More than 400 rivers in the country had floods above the warning level; the Yangtze River, the upper reaches of the Yellow River, the Xijiang River and Beijiang River, Taihu Lake and Huaihe River successively experienced huge floods. At present, the water level of Poyang Lake has broken through the historical height in 1998, and the “No.2 flood of Yangtze River in 2020” has been formed in the upper reaches of the Yangtze River. The water level of Taihu lake rises to the guaranteed level and is expected to continue to rise slowly. Hubei, Jiangsu and other places have started flood level I emergency response, and the flood situation is extremely severe.

In the face of this year’s flood situation, many people compare it with the catastrophic flood in 1998. Although the average precipitation in the Yangtze River Basin since June has reached 369.9 mm, 54.8 mm more than that in the same period in 1998, which is the highest in the same period since 1961, but the losses caused by floods in various regions are lower than those in that year. One of the important reasons is that China’s comprehensive flood control and flood fighting capacity is not what it used to be: 121,000 hydrological stations monitoring, 312,000 km of levees above grade 5 for retaining water, 98,800 large and small reservoirs for regulation.

There is a group of data worthy of attention: compared with the same period in the previous five years, the number of people affected by the flood disaster decreased by 7.3%, the number of collapsed houses decreased by 69.3%, and the direct economic loss decreased by 9.4%.

In recent years, China has paid more attention to the construction of water conservancy facilities and built a “iron wall” firmly, which makes the flood control and drought relief system more effective.

Persisting in Deepening Reform and Stimulating New Momentum

Both of Chinese economy and the global market are expected to rebound in the first half of this year. Recently, some foreign media predicted that China’s economy will be growing again, which is good news for the rest of the world.

Why is China’s economy able to rebound ahead of others? One of the reasons is that China’s economy has been accumulating new momentum, showing strong internal resilience and development vitality in resisting the impact of the epidemic.

Before the outbreak of the epidemic, China persisted in deepening the structural reform on the supply chain. With innovation driven and reform and opening up as two driving wheels in the process of quantity growth and quality improvement, the high-tech industry accelerates the development, while the traditional manufacturing industry continues to optimize and upgrade, the new kinetic energy of economic growth continues to accumulate, and the overall competitiveness of the economy is improved in an all-round way. Although the sudden outbreak of the epidemic at the beginning of the year has caused an unexpected huge impact on China’s economy, the actual performance of the new driving force of economic growth is still encouraging.

Opinion: US Secretary of State Mike Pompeo is Seemingly Addicted to Scapegoating China

It seems that U.S. Secretary of State Mike Pompeo has become addicted to scapegoating China, taking advantage of various opportunities to discredit and attack Chinese government. On July 17, Pompeo said in a speech that the United States is facing threats from China, Russia and Iran, and that China has taken away the freedom of the entire world. He also completely disregarded the duty of the U.S. government in the prevention and control of the epidemic, and boasted that he has taken responsibility to protect all American people. He was such a pro using double standards on the issue of national security. While attacking China’s legislation concerning Hong Kong’s national security, he claimed that the foreign policy pursued by the United States was a foreign policy centering on the United States and advocating national security.

Has China infringed upon freedom of the world? China has always adhered to the principle of mutual respect, mutual appreciation, mutual reference and mutual achievement, which is recognized and enshrined in all international treaties. How didUS politicians arrive on such conclusion that China is hurting the freedom of other countries? 

On the contrary, the United States has frequently provoked disputes around the world, which has deprived many countries and regions of their freedom and stability. Some Twitter users’ comments on Pompeo’s point of view can be described as penetrating the sovereignties of other countries. A clear example would be that the United States has 800 military bases around the world, occupying Afghanistan, Syria and Iraq. 

Pompeo said that the foreign policy pursued by the United States is a foreign policy advocating national security. National security is extremely important to any country, including the United States. Therefore, it is understandable that the United States attaches importance to national security. However, on the one hand, Pompeioand other U.S. politicians, on the one hand, said that they wanted to safeguard the national security of the United States, on the other hand, they criticized Hong Kong’s national security legislation, and slandered China’s actions to safeguard national security. Doesn’t China deserve national security? Why should the national security of the United States be based on the destruction of the national security of other countries? This is typical of egoism, unilateralism and bullying.

As of July 18th, confirmed COVID-19 cases in the United States totaled over 3 million, with nearly 140 thousand deaths. Is the U.S. government responsible in fighting the epidemic? The United States has the strongest scientific and technological strength in the world and abundant medical resources, but it has become the country with the most serious epidemic situation in the world. The reason is that the U.S. government has not focused on the prevention and control of the epidemic, but is busy beating around the bushes, taking advantage of the epidemic situation to discredit other countries, and even suppressing the different voices of domestic experts. Hence a question left for the U.S.: does the safety of American people matter?

22 New COVID-19 Cases in Chinese Mainland

A total of 22 new COVID-19 cases were registered on the Chinese mainland Friday, of which 16 were cases of domestic transmissions, the Chinese health authority said Saturday.

The 16 domestically transmitted cases were reported in northwest China’s Xinjiang Uygur Autonomous Region, the National Health Commission said in its daily report. As of Friday, a total of 17 confirmed cases have been reported in the region, all in Urumqi City. 269 people are under medical observation in the province.

Volunteers helped residents buy medicine in a pharmacy in Urumqi, China’s Xinjiang Autonomous Region, July 17, 2020. /VCG

EU Member States on Saturday Failed to Reach Consensus on the Next Seven-Year Budge

EU Member States Failed to Reach Consensus

A special summit grouping heads of state and government of the European Union (EU) member states on Saturday failed to reach consensus on the next seven-year budget and an ambitious recovery plan designed to lift the bloc out of the crisis triggered by the coronavirus pandemic.The leaders will reconvene on Sunday noon, said a spokesman for the European Council President Charles Michel.
The extension by an extra day was proposed by Michel, who has hosted the challenging roundtable and held bilateral meetings with his counterparts from the member states in the first two days, trying to bridge their differences.

First Summit Since the Pandemic

The summit, the first face-to-face one since the outbreak of the pandemic, came at a critical moment as the 27-member bloc is seeking a consensus on a 750 billion-euro recovery plan embedded in an enhanced 2021-2027 EU budget of 1.074 trillion euros.

Tax Incentives Increased in Indonesia to Curb the Pandemic

Indonesia has increased tax incentives for businesses in a move to try and limit the economic impact of the coronavirus pandemic, its tax office said on Saturday.

Previously announced tax relief measures that were due to expire in September have been extended until the end of the year, a statement said. They include tax breaks for some manufacturing workers and small and medium-sized enterprises, and a discount on corporate tax installments.

The government has also expanded the type of companies eligible to apply for the tax breaks, including, for example, forestry businesses in the scheme.

It has allocated nearly 50 billion U.S. dollars in state spending to fight the coronavirus pandemic. That, and a projected drop in fiscal revenues, are seen as expanding the 2020 budget deficit by more than three times the government’s original plan, to 6.34 percent of gross domestic product.

China’s Financial Authorities Announced the Takeover of Nine Financial Institutions

China’s financial authorities announced the takeover of nine financial institutions for one year from Friday, citing rule violations.

Four are insurers – Tian An Property Insurance, Huaxia Life Insurance, Tian An Life Insurance, and – and two are trust firms – New Times Trust and New China Trust, the China Banking and Insurance Regulatory Commission (CBIRC) said on its website.

The CBIRC said the move is to protect the rights of policy holders and customers and serve the public’s interest.