Spurning China's gift of experience: Daryl Guppy
x1
Spurning China's gift of experience: Daryl Guppy
3 Apr 2020
Chinese medical experts share their experience in COVID-19 prevention, control and treatment with their Lao counterparts in Vientiane, Laos, March 30, 2020. /Xinhua Editor's note: Daryl Guppy is a national board member of the Australia China Business Council. He is the Australian representative with the Silk Road Chambers of International Commerce and an international financial markets technical analysis expert. The article reflects the author's opinions, and not necessarily the views of CGTN. Following 2008, China gifted the world an economic recovery from the global financial crisis (GFC) by embarking on a massive infrastructure spend. Chinese capital was eagerly sought to keep many Western companies afloat. Some countries have never forgiven China for taking this lead. Today, China is gifting its experience with COVID-19, its knowledge, its medical supplies, and its skilled staff to those who need it. This includes hospital staff in Italy and medical supplies to the UK. For some, this hand of global co-operation is treated with the same type of suspicion that followed the GFC recovery. This gives rise to three distinct narratives, none of which are favorable to China. The first narrative blames China for the COVID-19 outbreak. This story is filled with social media distortions that have been accepted as truthful by some world leaders. China's rapid sharing of the COVID-19 genome sequence and other information is conveniently forgotten. This story also implies that China is somehow responsible for the inability of Western governments to plan ahead for an effective health response. Unlike China, they had several months warning, but COVID-19 appears to have caught Italy, Spain, and the United States by surprise. The second narrative imagines a nefarious motivation behind China's sharing of staff, medical supplies, and experience. It is painted as a deliberate extension of China's soft power and designed to enhance China's position as a global leader, particularly at the expense of the United States. Without a doubt, China's soft power will be enhanced by its high level of cooperation with the WHO and its generosity in delivering aid, not just to Europe, but also to third world countries that have inadequate health systems. This stands in stark contrast to the response from the United States that remains active in continuing sanctions that halt the supply of medical aid and with interfering in countries, such as Venezuela, to achieve political, not health, outcomes. Whether soft power expansion is the primary motivation of these Chinese measures is a moot point, but it is also clear no country ever gives aid as straight charity. There is nothing to stop the United States extending the same helping hand but President Trump's policy of "America First" is a significant factor in precluding offers of assistance. Already this narrative has metastasized into a more concerning impact with some countries declaring Chinese investment capital is not welcome to come to the rescue of failing companies. The most explicit of these declarations has been made by Australia, frightened of a repeat of the post-GFC China investment boom that powered the Australian economy for a decade. Despite this fear, China with just 1.8 percent of foreign investment in Australia in 2018, is the ninth largest foreign investor in Australia, coming after the U.S., UK, Belgium, Japan, and Singapore. The increasingly widespread adoption of this narrative presages a change in global investment flows post-COVID-19 and this will impact on the speed and efficiency of economic recovery. Companies will require recapitalization and the choice is either genuine new capital investment, or the so-called helicopter money created by simply speeding up the printing presses. The third narrative rests on the idea that the world has become too dependent upon China. It's claimed the contraction in global trade due to country lockdowns is evidence of this over-dependence on China. This most often relates to the supply of medical equipment and drugs – items which 3M, GlaxoSmithKline and other Western companies were more than happy to outsource to China and then resell at significantly higher prices in their home markets. Chinese Ambassador to Sudan Ma Xinmin hands over medical supplies to a senior Sudanese official during a donation ceremony at the headquarters of Sudan's Council of Ministers in Khartoum, Sudan, March 31, 2020. /Xinhua True or false, the potential outcome remains the same. Post COVID-19 will see pressure to shift away from made-in-China imports and their replacement with more expensive substitute products. Whilst appearing to assist economic recovery with the development of "new" businesses, the result will be more expensive products that will hamper the speed of recovery. For decades, Western economies have benefited from the deflationary impact of cheaper imported goods from China. The time when this was restricted to handyman tools has been superseded by high end products like medical equipment. The deflationary role in improving business efficiency and productivity cannot be underestimated. Residents in Western countries are moving into extended periods of self-isolation and this has resulted in national isolation as borders are closed and connections severed with the world. Restoring these connections, both logistical and social, will be difficult, as the long suppressed suspicion of "foreigners" has been given "legitimacy" by contagion fears. It is foolish to imagine that the world will emerge from this fearful economic hibernation much the same as it was prior to the pandemic. The challenge is to acknowledge the changes and adapt global business models accordingly. Just what shape these will take is unknown but, in some quarters, the anti-globalization narrative is morphing into an anti-China narrative. Business, and business organizations have an important role to play in countering this developing division. Cross border business groups like the Silk Road Chamber of International Commerce are more important than ever because they connect business interests which, in turn, must guide the decisions taken by political leaders. Global prosperity rests upon open borders, free trade and a commitment to global cooperation despite any inclination to do otherwise. This requires improved engagement with China, not disengagement. The pandemic is an opportunity for global leaders to show their true colors. First, in the protection of their citizens in this health crisis; second, in the way they deliver humanitarian support beyond their borders by sharing knowledge; and third, in the way they cooperate to shape the global economic recovery. Source: CGTN
China-Europe trains play bigger role amid epidemic
x1
China-Europe trains play bigger role amid epidemic
3 Apr 2020
The spread of the novel coronavirus disease (COVID-19) has incurred global traffic restrictions, leaving tonnes of goods confined to their origins and unable to reach the destinations. However, the China-Europe cargo trains have remained a reliable transportation channel across the continents, displaying its strategic value of ensuring the international supply chain amid the epidemic. Initiated in 2011, the China-Europe rail service is considered a significant part of the Belt and Road Initiative to boost trade between China and countries along the routes. A new report by the China Container Industry Association showed that China-Europe trains made 1,132 trips from 63 Chinese cities in the first two months of 2020, up 6 percent year on year. Train service from central and western China in particular, registered strong growth, with departures from the city of Chengdu, southwest China's Sichuan Province, rose 88 percent year on year to 267, while trains leaving from Hunan Province surged by 175 percent in the first two months. But the sudden hit of the novel coronavirus outbreak did cast a shadow on trains running on the routes. In the eastern Chinese city of Yiwu, China's small commodity hub, regular Europe-bound rail service after the Spring Festival, the biggest holiday season in China, resumed more than two weeks later than usual. From the start of the year to March 24, the Yiwu railway station saw departures of 67 China-Europe freight trains carrying 5,474 TEUs (20-foot containers), up 40.8 percent year on year. However, between Feb. 10 and March 20, only 10 freight trains left Yiwu for Europe. Together they carried 828 TEUs of goods, down 43.4 percent from a year ago. Meanwhile, no cargos were shipped back. "The biggest change is that the entire company was left with not much to do after the Spring Festival. In previous years, the peak period of shipment was 10 days after the opening of the market after the Lunar New Year, but it took one month to resume normal operation this year," said Feng Xubin, chairman of the operating company of the China-Europe cargo service in Yiwu. Now as the coronavirus pandemic continued to infect more population globally, many countries have further tightened control of air and sea transportation. "The soaring price of air freight has led to further decline in goods shipped by air," said Guo Liming, general manager of a Henan-based supply chain management company. The China-Europe freight service has therefore become an important channel to transport medical supplies out of China, a major manufacturer of such products. A freight train carrying donated face masks and other anti-coronavirus supplies departed Yiwu on March 21 for Madrid, Spain. The donation included 110,000 surgical masks and 766 protective suits. It was the first China-Europe freight train to carry anti-epidemic supplies to Europe, which will arrive in Madrid in about two weeks. There will be no transportation charges for any institutions, groups or individuals that donate anti-epidemic supplies to Spain. The train from Yiwu to Madrid will increase frequency from one trip a week to two trips per week, said Feng. The China-Europe train service even resumed in Wuhan, the former epicenter of the coronavirus outbreak in China, on March 28, soon after the city loosened traffic control following a two-month lockdown. Carrying medical supplies and other goods with a total value of 22 million yuan (3.1 million U.S. dollars), the train will arrive in the German city of Duisburg in about 15 days and the goods will be transported to countries including France, Hungary, the Czech Republic and Poland. "The goods and the train have been thoroughly disinfected and we're closely monitoring the physical condition of the driver," said Gao Ruorui with Wuhan Asia-Europe Logistics. "We believe that the stable services we provided during the epidemic will deepen people's understanding of the China-Europe rail service," said Kang Yan, vice-general manager of Zhengzhou International Hub Development and Construction Co., Ltd., operator of the China-Europe trains in Zhengzhou. "Railway is the most reliable transportation channel during the epidemic." "We hope that more countries can fully recognize the role of the China-Europe freight trains and make greater use of them, especially when transportation is strictly restricted at harbors and airports," said Guo. Source: Xinhua
Global economy could shrink by 1 pct in 2020 due to COVID-19 pandemic: UN
x1
Global economy could shrink by 1 pct in 2020 due to COVID-19 pandemic: UN
2 Apr 2020
The global economy could shrink by up to 1 percent in 2020 due to the COVID-19 pandemic, and may contract even further if restrictions on economic activities are extended without adequate fiscal responses, according to analysis released Wednesday by the UN Department of Economic and Social Affairs (UN-DESA). The UN-DESA briefing finds that millions of workers are at risk of losing their jobs as nearly 100 countries close their national borders. That could translate to a global economic contraction of 0.9 percent by the end of 2020, or even higher if governments fail to provide income support and help boost consumer spending. According to the forecast, lockdowns in Europe and North America are hitting the service sector hard, particularly industries that involve physical interactions such as retail trade, leisure and hospitality, recreation and transportation services. Collectively, such industries account for more than a quarter of all jobs in these economies. As businesses lose revenue, unemployment is likely to increase sharply, transforming a supply-side shock to a wider demand-side shock for the economy. The severity of the impact will largely depend on the duration of restrictions on the movement of people and economic activities and on the scale and efficacy of responses by national treasuries. Against that backdrop, the UN-DESA is joining a chorus of voices across the UN system calling for well-designed fiscal stimulus packages which prioritize health spending and support households most affected by the pandemic. "Urgent and bold policy measures are needed, not only to contain the pandemic and save lives, but also to protect the most vulnerable in our societies from economic ruin and to sustain economic growth and financial stability," said Liu Zhenmin, UN undersecretary-general for economic and social affairs. The analysis also warns that the adverse effects of prolonged economic restrictions in developed economies will soon spill over to developing countries via trade and investment channels. A sharp decline in consumer spending in the European Union and the United States will reduce imports of consumer goods from developing countries. Developing countries, particularly those dependent on tourism and commodity exports, face heightened economic risks. Global manufacturing production could contract significantly, and the plummeting number of travellers is likely to hurt the tourism sector in small island developing states, which employs millions of low-skilled workers. The UN civil aviation body, the International Civil Aviation Organization, welcomed the commitment by leaders of the G20 major economies late last week indicating that bold fiscal support was needed to safeguard the global travel industry, in order to aid the global recovery in the coming months. Meanwhile, the decline in commodity-related revenues and a reversal of capital flows are increasing the likelihood of debt distress for many nations. Governments may be forced to curtail public expenditure at a time when they need to ramp up spending to contain the pandemic and support consumption and investment. Elliot Harris, UN chief economist and assistant secretary-general for economic development, said the collective goal must be a resilient recovery which puts the planet back on a sustainable track. "We must not lose sight how it is affecting the most vulnerable population and what that means for sustainable development," he noted. Source: Xinhua
First RMB bond issued in Kazakhstan
x1
First RMB bond issued in Kazakhstan
2 Apr 2020
The first yuan-denominated bond, issued by the China Construction Bank (CCB) Astana branch, has been listed on Kazakhstan's Astana International Exchange (AIX) and the Hong Kong Exchanges and Clearing Limited (HKEX), the press service of the CCB Astana branch announced on Wednesday. It is the first RMB bond issued in Central Asia. The funds raised will be used to support local infrastructure and Belt and Road projects in Kazakhstan. With an interest rate of 2.95 percent per annum, the bond in the amount of 1 billion yuan (141 million U.S. dollars) is available for professional investors. Kairat Kelimbetov, governor of the Astana International Financial Center (AIFC), said the listing was a result of close Kazakhstan-China financial cooperation under the framework of the Belt and Road Initiative. "The bond will promote the development of an offshore RMB market in the AIFC, Kazakhstan and Central Asia," he said. Tim Bennett, CEO of the AIX, said the bond is the first RMB product of the AIX Belt and Road market. It provides an innovative model for funding Belt and Road projects in Kazakhstan, which will contribute to the development of the local economy and create new jobs. "The CCB Astana branch will continue to work with the AIFC and the AIX on building an offshore RMB center to promote local currency settlement in China and Kazakhstan," Wang Songhua, senior executive officer of the CCB Astana branch, told Xinhua. The AIFC, Kazakhstan's regional financial hub, was founded in January 2018. As one of the 55 China-Kazakhstan production capacity cooperation programs, the AIX, with Shanghai Stock Exchange and the Silk Road Fund among the shareholders, is a major participant of the AIFC. China Construction Bank officially opened its Kazakh branch last September. Source: Xinhua
ICC open letter to G20 trade ministers
x1
ICC open letter to G20 trade ministers
1 Apr 2020
Following the first ever virtual G20 Summit on 26 March 2020, ICC Secretary General John W.H. Denton AO wrote to G20 Trade Ministers ahead of their meeting on Monday 30 March, with a roadmap for G20 countries to use trade policy to fight COVID-19 and rebuild the future. In the letter, ICC outlines 10 concrete ideas for trade ministers with three core goals in mind – to speed the health response to COVID-19, to keep trade flowing to restore growth and safeguard jobs, and to maintain momentum on reform of the trading system. Please click here to download the open letter. Source:iccwbo.org
China steps up support for work resumption in free trade zones
x1
China steps up support for work resumption in free trade zones
1 Apr 2020
China's trade promotion agencies have taken a string of measures to help enterprises in pilot free trade zones return to work, according to the China Council for the Promotion of International Trade (CCPIT). Commercial, legal and trade promotion services were provided by 11 free trade service agencies to companies in pilot free trade zones to facilitate their work resumption, said the CCPIT. Agencies in the provinces of Zhejiang, Guangdong and Sichuan and the municipalities of Tianjin and Shanghai assisted nearly 200 firms to obtain force majeure certificates, covering a total contract value around 27 billion yuan (about 3.81 billion U.S. dollars) to help companies avoid penalties for not being able to meet contractual obligations amid the epidemic outbreak. Over 100 firms in Zhejiang, Guangdong and Sichuan, as well as Shanghai, Tianjin and Chongqing received remote consulting services on intellectual property rights, while 600 companies were provided with legal services, according to the CCPIT. Local trade promotion agencies also assisted firms in the export of epidemic prevention and control supplies and production certification. Source: Xinhua
Urgent Protective Materials for Italian Hospitals
x1
Urgent Protective Materials for Italian Hospitals
20 Mar 2020
Dear SRCIC colleagues, Italy has just surpassed China for the most number of deaths related to coronavirus, making it the world's deadliest center of the outbreak.Due to serious shortage of medical supplies,doctors and nurses have been working without proper protection. Up to 2629 professionals were infected by March 18, accounting for 8.3% of the total infected population. A 57-year-old doctor, Marcello Natali, who tested positive for coronavirus and who was working in a hospital in the town of Codogno has died. In one of the last interviews he gave before he was tested for COVID-19, he told Euronews that he had had to work without gloves: "They have run out," he said. Italy is like Wuhan a few weeks ago. The medical professionals need our help. If you are willing to donate facial masks and other protective materials, please contact the Neuromed Foundation as listed in the Request Form of Donation of Urgent Protective Materials for Italian Hospitals. Materials needed: Surgical mask/100 000 pieces; FFP2 mask/250 000 pieces; FFP3 mask/250 000 pieces Italian Contact: Alessio Pietracupa Tel:+39 333 6736462 Email: pietracupa@evotion.io Chinese Contact: Yapeng Ou Wechat: yap505288 Email: yapeng.ou@unire.it Request Form of Donation of Urgent Protective Materials
Silk Road online health and epidemic prevention products
x1
Silk Road online health and epidemic prevention products
17 Mar 2020
Dear friends, As China has made important progress in containing the COVID-19, we regret to see that the coronavirus has now spread to the other parts of the world. Many countries declared state emergency to fight against the pandemic.We at SRCIC are deeply sympathetic with those whose health and lives are affected, and hope to our part to help addressing this common challenge. Since the beginning of the outbreak, we've noticed that the demands for medical/health/sanitation products have surged tremendously, leading to supply shortages and price gouging. China, as the main supplier to the global market, has barely recovered from the severe shortages since many factories still haven't been able to resume normal production. Nevertheless, we have sourced reliable companies in China who are able to take orders at reasonable market prices. If you are looking to purchase items from the attached list, please send an email to secretariat@srcic.com. Upon receiving your inquiry, we will forward your request to a trading company in Hong Kong, one of SRCIC sponsors with strong credibility, to proceed with the transaction. Thank you for your attention. Best regards, Secretariat of Silk Road Chamber of International Commerce
CLK Donates Masks to SRCIC Secretariat for Epidemic Prevention
x1
CLK Donates Masks to SRCIC Secretariat for Epidemic Prevention
26 Feb 2020
Since the outbreak of coronavirus pneumonia, members and partners of Silk Road Chamber of International Commerce (SRCIC) delivered messages of support and sympathy through video, letters, emails and instant messengers to colleagues at SRCIC Secretariat. Knowing that China faces shortage of medical supplies for preventing measures, CLK overcame the difficulties posed by restricted international logistics, and donated two boxes of FFP2 masks, 480 pieces in total, to protect the health of SRCIC employees during this difficult time. Calik Group operates in diversified sectors, ranging from textile and energy to finance and construction throughout Turkey, Central Asia and the Balkans. On July 17, 2018, SRCIC Chairman Lu Jianzhong and Mr. Calik, President of Calik Group met in Shanghai. Both sides agreed to increase communication and explore cooperation in the fields of finance, logistics and cultural exchanges. Chairman Lu Jianzhong (left) and Mr. Calik, President of Calik Group (right) Synergy with Çalık Group CLK was founded in 2017 by Çalık family who has been working with the mission to add value to the sectors ranging from textile and energy to finance and construction throughout Turkey, Central Asia and the Balkans. The company has operations in logistics, trade and procurement lead by an experienced and dynamic team of professionals. Working closely with Çalık Group that has a long-standing presence brings a unique synergy and the subject’s organizational structure is one of a kind which brings logistics, trade and procurement together under one roof. Thanks to this unique structure, CLK can provide end-to-end solutions with a holistic approach that pursues efficiency in all these three disciplines. In addition to road, air, sea and railway transportation services provided in logistics discipline, CLK also provides intermodal transportation services and carries out project cargo operations both of which are not only cost-efficient and time saving but also environmentally sustainable. SERVICES Logistics Intermodal Transportation: CLK can deliver the cargo to be transported by multiple modes of transport using integrated systems without the need for handling thanks to its liaison offices at key locations of the geographical region it operates. These combined logistics services, which include multiple modes of transport, provide customers with advantages in terms of both cost and sustainability. Intermodal transportation minimizes the negative impact on the environment and contributes to sustainability especially with its use of railway and maritime transport. In this respect, intermodal transportation has become a much more preferred combined mode of transport in recent years. Railway Transportation: Railway transport has been integrated by CLK into the other logistic services in its portfolio due to its significance in terms of tonnage and cost elements, and its future potential. Railway transport via Baku-Tbilisi-Kars railway line and the Middle Corridor route crossing the Caspian Sea are the two main railway routes that CLK benefit from. CLK fully benefits from the advantages of rail transport in terms of cost and tonnage in intermodal transport and conventional rail transport. It shares the benefits of these advantages that are related to sustainability with its customers. Trade CLK; is well equipped to provide any material or product in the geographical region covered by modern Silk Road thanks to its ability to bring the rich resources in Turkey and Central Asia, and China, the world’s most populous market, to a common ground. Trading of petrochemicals, minerals and industrial products as well as trade of products unique to the geographical region it operates are among CLK’s priorities. CLK fulfills its obligations in a timely manner thanks to its local representatives in the relevant countries. Procurement Having established the connections in China to provide the demanded material, technology and service solutions, CLK is able to meet the needs of its customers associated with construction and energy projects to be engineered on the route of modern Silk Road. In addition to this service, the company is able to create integrated solutions combined with logistics, one of its main areas of interest. Silk Road CLK, which provides logistics and trade services, operates in the geographical area, that the Silk Road passes through, which includes China and Central Asia extending all the way to Europe.CLK offers a reliable experience in terms of trade and transport between countries located on the route of the Silk Road, also known as “The Path of Prosperity”, which has a historical impact on the development of civilizations, trade, technology and industry. The route that connects the past, present and future: The Silk Road CLK is also engaged in the trade and logistics of products such as fertilizers, polyethylene, polypropylene and sulfur, which are in high demand around this widely popular trade route, in addition to traditional products such as olive oil, apricot, rose water and cotton. Additionally; CLK which helps the procurement of materials needed for construction and energy projects located on the Silk Road, aims to contribute to the building of the past, present and future via using the Silk Road and to leave a mark on this journey with its stakeholders.
Love and amity the most effective vaccine: Jean-Guy Carrier
x1
Love and amity the most effective vaccine: Jean-Guy Carrier
19 Feb 2020
The aftermath of the severe acute respiratory syndrome epidemic in 2002-03 signaled, in many ways, China's return to a central position in the world. After performing an economic miracle since launching reform and opening-up in the late 1970s, China became a member of World Trade Organization in 2001 after 15 years of negotiations. Which inspired pride in the Chinese people, as I discovered during my travels there as a staff member of the WTO. I met everywhere people who saw China's entry into the WTO as proof that their country was stepping out into the world, and that the world was turning increasingly toward China. But events took a surprising turn when the SARS epidemic broke out in China in November 2002. By early 2003, the SARS virus had spread to 17 countries. It would eventually kill 774 people, mostly on the Chinese mainland and the Hong Kong Special Administrative Region before it was contained. The outcome of the coronavirus outbreak is likely to be the same as that of the SARS epidemic. The difference is not with the coronavirus so much as it is with the reality of China's return to the global stage and its influence as an engine of the global economy. That was only beginning to happen when the SARS epidemic occurred in 2002. My son was a teacher in China's eastern region at that time. Like everyone outside China, we were concerned for his health and safety. The reports we received were often alarming. The small city where our son lived and worked was quarantined like many other places in China. He was unable to work or travel. But the family of one of his students invited him to their home at that time, like a lonely son in need of company. It was during this period that our son discovered the structure and beauty of the Chinese language. As he described it, "a light went on" and he understood the workings of the language, largely thanks to the generosity, warmth and openness of the family which took him into their modest home. Today he speaks Mandarin fluently. So do millions of other non-Chinese who have been impressed, inspired and have often found careers because of China's extraordinary economic development. It is precisely this Asian miracle which made a huge difference in how the world reacted to SARS. Yet there is a lack of generosity expressed in criticisms from outside China about how the Chinese people and governments are responding to the coronavirus epidemic. Stories of effective measures and containment are accompanied by others that raise the specter of secrecy, censorship and even repression. My son and his Chinese wife were in some place in Northeast China to celebrate the Lunar New Year when the coronavirus outbreak intensified. But despite being frightened and concerned, they and their Chinese family and friends celebrated Spring Festival, as they do every year. Much has changed since China was welcomed to the international community. Sanctions and punitive tariffs, trade wars and bitter spats between governments have turned admiration for China's miraculous rise into raw envy at its new wealth by governments which see China as a security threat. The coronavirus epidemic will inevitably abate and disappear. What should be dreaded most is the persistence of a view of China as a threat, a source of deadly viruses, dangerous technologies and ideas. The family which took my son into its home during the SARS epidemic celebrated the advent of the Year of the Rat with my son and his wife in their home. That family has prospered thanks to China's economic rise. Their son is a PhD candidate in a US University. He speaks fluent English and as an educated, well-travelled Chinese national, he has also become a citizen of the world. Returning home in Paris after celebrating the Spring Festival in China, my son and his wife found the streets devoid of Asian tourists. There was also in the air and in the media a suspicion and fear of anything Asian, as if a dangerous virus was lurking even in Chinese restaurants. My son and his wife promptly went about collecting face masks to send to China, where a shortage was reported. Small gestures of kindness and understanding are taking place by the millions in the face of this new crisis, between people in China and outside China who are aware of their responsibility as members of the international community. The simple wisdom of such kind gestures will be remembered long after the virus has disappeared. The Year of the Rat marks the start of a new 12-year cycle in the Chinese zodiac. It is a symbol of hope and a new beginning for all of us who believe that friendship and renewal are the most effective vaccines against fear and hostility, everywhere in this small world. The author is a non-resident senior fellow at Chongyang Institute for Financial Studies, Renmin University of China, and executive chairman of the Silk Road Chamber of International Commerce, a Hong Kong-headquartered transnational business confederation. The views don't necessarily reflect those of China Daily. Source: China Daily
Full Support from SRCIC Members to Combat Coronavirus Outbreak in China
Full Support from SRCIC Members to Combat Coronavirus Outbreak in China
14 Feb 2020
Full Support from SRCIC Members to Combat Coronavirus Outbreak in China Volume I Since the novel coronavirus outbreak, the Silk Road Chamber of International Commerce (SRCIC) has connected with more than 280 members in 82 countries, informed them of the decisive and effective measures taken and the results achieved by China in fighting the epidemic, and encouraged supporting measures from international community. Upon learning about the situation, many members of SRCIC donated money and materials to help China fight against the coronavirus outbreak. Mr. Cheng Kar-shun, SRCIC Executive Vice Chairman donated RMB 20 million yuan. The Philippine Silk Road International Chamber of Commerce (PSRICC) donated about RMB 2 million yuan. Yaxin Steel Group Co., Ltd., one of SRCIC Enterprise members, donated RMB 20 million yuan. SRCIC members including the Ukrainian Chamber of Commerce and Industry, the Mongolian Chamber of Commerce and Industry, the Amman Chamber of Commerce also donated money and materials to China. New World China and K11, led by SRCIC Executive Vice Chairman Mr. Cheng Kar-shun, donated funds to fight against the coronavirus outbreak. The New World China donated RMB 10 million yuan to the First Affiliated Hospital SUN YAT-SEN University for the purchase of protective equipment for frontline medical staff. A special fund with a total amount of RMB 5 million yuan was set up by K11, and 200,000 surgical masks were delivered to Wuhan urgently. The Chow Tai Fook Jewellery Group, SRCIC Executive Vice Chairman Mr. Cheng Kar-shun, established a special fund to fight against the coronavirus outbreak, and added another 10 million on February 10th for the purchase of medical supplies. On January 28, 2020, China's Ambassador to the Philippines Huang Xilian met with President of Philippine Silk Road International Chamber of Commerce (PSRICC) Francis Chua at the Chinese Embassy in the Philippines. PSRICC donated 15 million pesos (about RMB 2 million yuan) to China. The Ukrainian Chamber of Commerce and Industry, together with Ukraine-China Commerce and Industry Association and other organizations, donated 100,000 masks to China. On February 10, 2020, Mr. Amartuvshin, President of Mongolian National Chamber of Commerce and Industry, along with corporate and media representatives, visited the Chinese Embassy in Mongolia and made a donation of140 million tugrik (about RMB 350,000 yuan). The Board Member of Amman Chamber of Commerce Mr. Maher Alsheikh Yousef personally donated 2,400 FFP2 masks to the Foshan Women and Children’s Hospital. Public Foundation (Kazakhstan) “International Academy of Culture and Economic Cooperation New Silk Road” donated RMB10,000 yuan to the Red Cross Society of China Shaanxi Branch (the picturebelow is the invoice of donation). Yaxin Steel Group Co., Ltd., one of Silk Road Enterprise Development Alliance (SREDA) members, donated RMB 20 million yuan through the Red Cross Society of China to Wuhan, Hubei Province and other areas to combat the serious epidemic, exclusively for novel coronavirus prevention and control. Xi'an Cilico Microelectronics Co., Ltd., one of SREDA members, donated the first batch of PDAs for mobile nursing care to the Xi’an Public Health Emergency Central Hospital. (the picture above is the letter of appreciation from the hospital). On February 1 and 3, 2020, Kazakhstan donated 13.6 tons of medical supplies in urgent need (1 million pairs of medical gloves and more than 500,000 masks) to China (Wuhan and Beijing) to combat the epidemic. On January 30, 2020 and February 5, Belarus donated a total of 40 tons of medical supplies to China. The China-Belarus Great Stone Industrial Park issued a proposal early on to encourage the companies and individuals inside the Park to make donations. The Park also purchased 130,000 masks, 574 sets of coveralls, 20,000 medical gloves and other medical supplies to support China. In addition, members and partners of SRCIC from various countries delivered over 100 messages of empathy and support through videos, letters, emails, WeChat, Linkedin, Whatsapp, etc. They highly commended the prevention and control measures taken by the Chinese government, and assured their continuous support by making donations through various channels. Stjepan Mesic, former Croatian President and senior advisor of SRCIC, said in his video message that “when I heard the people of Wuhan chanting ‘stay strong!’ through the window at night, I was once again moved by the spirit of the Chinese people. I have often marveled at China's tremendous economic development and long-standing culture, but what impressed me most was the generosity and hard work of the Chinese people. Go Wuhan, Go Hubei! China is strong, and it has many friends worldwide. Health and happiness will come soon.” Former Philippine President Gloria Macapagal Arroyo, Honorary President of the Philippine Silk Road International Chamber of Commerce (PSRICC), said in a statement that she firmly supports China's great efforts to curb the spread of the epidemic and hopes that the fight against the disease, which affects the health of the Chinese people, the Philippine people and the whole mankind, will be won at an early date. Alexander Tomov, senior adviser to the SRCIC and former Bulgarian Deputy Prime Minister, expressed his admiration for the Chinese government and people united in the battle against the novel coronavirus and his firm belief that the Chinese government and people will eliminate the epidemic soon. O. Amartuvshin, President of the Mongolian National Chamber of Commerce and Industry (MNCCI), delivered a letter of condolences expressing his sympathy for the losses caused by the disruption to China's society, economy and businesses, and offered his condolences to the families of the deceased. He said that the Mongolian people firmly believed that under the efficient leadership of the Chinese central and local governments and through the concerted efforts of the Chinese people, China will soon be able to contain the spread of the epidemic and carry out effective diagnosis and treatment of the patients. The Chinese Southeast European Business Association (CSEBA) wrote to commend the measures taken by the Chinese government in dealing with the epidemic. “China has rich experience in tackling various dangerous situations, and it also has the responsibility and determination to quickly eliminate the novel coronavirus epidemic.”
Lu Jianzhong: One Heart and One mind, we will win the Battle against Novel Coronavirus Epidemic
Lu Jianzhong: One Heart and One mind, we will win the Battle against Novel Coronavirus Epidemic
13 Feb 2020
Lu Jianzhong Deputy to the 13th National People's Congress Chairman of the Silk Road Chamber of International Commerce President of the China Cultural Chamber of Commerce for the Private Sector Board Chairman of the Tang West Market Group Since the outbreak of the novel coronavirus pneumonia, the 1.4 billion Chinese people have been united in joint effort to prevent and control the epidemic under the leadership of the CPC Central Committee. The effectiveness and efficiency of the state governance system and government institutions have enabled the people across China to combat the epidemic in coordination, demonstrating China's institutional advantage in gathering strength and resources to address major challenges. The Chinese people have also displayed their unity, tenacity and unyielding spirit to the world. The virus is merciless, but love and friendship will prevail. Members of Silk Road Chamber of International Commerce from 82 countries have donated money and medical supplies to China, which shows the great strength shared by people connected by the Belt and Road Initiative (BRI). Through BRI international cooperation, more and more Silk Road related countries and social communities have rallied as a community of shared interests, and as a community of shared responsibility and future. The final victory belongs to people united with one heart and one mind. The impact of the epidemic is temporary. We firmly believe under the leadership of CPC Central Committee, we will win the war against the novel coronavirus epidemic with concerted national effort and great support from international community.
Spurning China's gift of experience: Daryl Guppy
x1
Spurning China's gift of experience: Daryl Guppy
3 Apr 2020
Chinese medical experts share their experience in COVID-19 prevention, control and treatment with their Lao counterparts in Vientiane, Laos, March 30, 2020. /Xinhua Editor's note: Daryl Guppy is a national board member of the Australia China Business Council. He is the Australian representative with the Silk Road Chambers of International Commerce and an international financial markets technical analysis expert. The article reflects the author's opinions, and not necessarily the views of CGTN. Following 2008, China gifted the world an economic recovery from the global financial crisis (GFC) by embarking on a massive infrastructure spend. Chinese capital was eagerly sought to keep many Western companies afloat. Some countries have never forgiven China for taking this lead. Today, China is gifting its experience with COVID-19, its knowledge, its medical supplies, and its skilled staff to those who need it. This includes hospital staff in Italy and medical supplies to the UK. For some, this hand of global co-operation is treated with the same type of suspicion that followed the GFC recovery. This gives rise to three distinct narratives, none of which are favorable to China. The first narrative blames China for the COVID-19 outbreak. This story is filled with social media distortions that have been accepted as truthful by some world leaders. China's rapid sharing of the COVID-19 genome sequence and other information is conveniently forgotten. This story also implies that China is somehow responsible for the inability of Western governments to plan ahead for an effective health response. Unlike China, they had several months warning, but COVID-19 appears to have caught Italy, Spain, and the United States by surprise. The second narrative imagines a nefarious motivation behind China's sharing of staff, medical supplies, and experience. It is painted as a deliberate extension of China's soft power and designed to enhance China's position as a global leader, particularly at the expense of the United States. Without a doubt, China's soft power will be enhanced by its high level of cooperation with the WHO and its generosity in delivering aid, not just to Europe, but also to third world countries that have inadequate health systems. This stands in stark contrast to the response from the United States that remains active in continuing sanctions that halt the supply of medical aid and with interfering in countries, such as Venezuela, to achieve political, not health, outcomes. Whether soft power expansion is the primary motivation of these Chinese measures is a moot point, but it is also clear no country ever gives aid as straight charity. There is nothing to stop the United States extending the same helping hand but President Trump's policy of "America First" is a significant factor in precluding offers of assistance. Already this narrative has metastasized into a more concerning impact with some countries declaring Chinese investment capital is not welcome to come to the rescue of failing companies. The most explicit of these declarations has been made by Australia, frightened of a repeat of the post-GFC China investment boom that powered the Australian economy for a decade. Despite this fear, China with just 1.8 percent of foreign investment in Australia in 2018, is the ninth largest foreign investor in Australia, coming after the U.S., UK, Belgium, Japan, and Singapore. The increasingly widespread adoption of this narrative presages a change in global investment flows post-COVID-19 and this will impact on the speed and efficiency of economic recovery. Companies will require recapitalization and the choice is either genuine new capital investment, or the so-called helicopter money created by simply speeding up the printing presses. The third narrative rests on the idea that the world has become too dependent upon China. It's claimed the contraction in global trade due to country lockdowns is evidence of this over-dependence on China. This most often relates to the supply of medical equipment and drugs – items which 3M, GlaxoSmithKline and other Western companies were more than happy to outsource to China and then resell at significantly higher prices in their home markets. Chinese Ambassador to Sudan Ma Xinmin hands over medical supplies to a senior Sudanese official during a donation ceremony at the headquarters of Sudan's Council of Ministers in Khartoum, Sudan, March 31, 2020. /Xinhua True or false, the potential outcome remains the same. Post COVID-19 will see pressure to shift away from made-in-China imports and their replacement with more expensive substitute products. Whilst appearing to assist economic recovery with the development of "new" businesses, the result will be more expensive products that will hamper the speed of recovery. For decades, Western economies have benefited from the deflationary impact of cheaper imported goods from China. The time when this was restricted to handyman tools has been superseded by high end products like medical equipment. The deflationary role in improving business efficiency and productivity cannot be underestimated. Residents in Western countries are moving into extended periods of self-isolation and this has resulted in national isolation as borders are closed and connections severed with the world. Restoring these connections, both logistical and social, will be difficult, as the long suppressed suspicion of "foreigners" has been given "legitimacy" by contagion fears. It is foolish to imagine that the world will emerge from this fearful economic hibernation much the same as it was prior to the pandemic. The challenge is to acknowledge the changes and adapt global business models accordingly. Just what shape these will take is unknown but, in some quarters, the anti-globalization narrative is morphing into an anti-China narrative. Business, and business organizations have an important role to play in countering this developing division. Cross border business groups like the Silk Road Chamber of International Commerce are more important than ever because they connect business interests which, in turn, must guide the decisions taken by political leaders. Global prosperity rests upon open borders, free trade and a commitment to global cooperation despite any inclination to do otherwise. This requires improved engagement with China, not disengagement. The pandemic is an opportunity for global leaders to show their true colors. First, in the protection of their citizens in this health crisis; second, in the way they deliver humanitarian support beyond their borders by sharing knowledge; and third, in the way they cooperate to shape the global economic recovery. Source: CGTN
China-Europe trains play bigger role amid epidemic
x1
China-Europe trains play bigger role amid epidemic
3 Apr 2020
The spread of the novel coronavirus disease (COVID-19) has incurred global traffic restrictions, leaving tonnes of goods confined to their origins and unable to reach the destinations. However, the China-Europe cargo trains have remained a reliable transportation channel across the continents, displaying its strategic value of ensuring the international supply chain amid the epidemic. Initiated in 2011, the China-Europe rail service is considered a significant part of the Belt and Road Initiative to boost trade between China and countries along the routes. A new report by the China Container Industry Association showed that China-Europe trains made 1,132 trips from 63 Chinese cities in the first two months of 2020, up 6 percent year on year. Train service from central and western China in particular, registered strong growth, with departures from the city of Chengdu, southwest China's Sichuan Province, rose 88 percent year on year to 267, while trains leaving from Hunan Province surged by 175 percent in the first two months. But the sudden hit of the novel coronavirus outbreak did cast a shadow on trains running on the routes. In the eastern Chinese city of Yiwu, China's small commodity hub, regular Europe-bound rail service after the Spring Festival, the biggest holiday season in China, resumed more than two weeks later than usual. From the start of the year to March 24, the Yiwu railway station saw departures of 67 China-Europe freight trains carrying 5,474 TEUs (20-foot containers), up 40.8 percent year on year. However, between Feb. 10 and March 20, only 10 freight trains left Yiwu for Europe. Together they carried 828 TEUs of goods, down 43.4 percent from a year ago. Meanwhile, no cargos were shipped back. "The biggest change is that the entire company was left with not much to do after the Spring Festival. In previous years, the peak period of shipment was 10 days after the opening of the market after the Lunar New Year, but it took one month to resume normal operation this year," said Feng Xubin, chairman of the operating company of the China-Europe cargo service in Yiwu. Now as the coronavirus pandemic continued to infect more population globally, many countries have further tightened control of air and sea transportation. "The soaring price of air freight has led to further decline in goods shipped by air," said Guo Liming, general manager of a Henan-based supply chain management company. The China-Europe freight service has therefore become an important channel to transport medical supplies out of China, a major manufacturer of such products. A freight train carrying donated face masks and other anti-coronavirus supplies departed Yiwu on March 21 for Madrid, Spain. The donation included 110,000 surgical masks and 766 protective suits. It was the first China-Europe freight train to carry anti-epidemic supplies to Europe, which will arrive in Madrid in about two weeks. There will be no transportation charges for any institutions, groups or individuals that donate anti-epidemic supplies to Spain. The train from Yiwu to Madrid will increase frequency from one trip a week to two trips per week, said Feng. The China-Europe train service even resumed in Wuhan, the former epicenter of the coronavirus outbreak in China, on March 28, soon after the city loosened traffic control following a two-month lockdown. Carrying medical supplies and other goods with a total value of 22 million yuan (3.1 million U.S. dollars), the train will arrive in the German city of Duisburg in about 15 days and the goods will be transported to countries including France, Hungary, the Czech Republic and Poland. "The goods and the train have been thoroughly disinfected and we're closely monitoring the physical condition of the driver," said Gao Ruorui with Wuhan Asia-Europe Logistics. "We believe that the stable services we provided during the epidemic will deepen people's understanding of the China-Europe rail service," said Kang Yan, vice-general manager of Zhengzhou International Hub Development and Construction Co., Ltd., operator of the China-Europe trains in Zhengzhou. "Railway is the most reliable transportation channel during the epidemic." "We hope that more countries can fully recognize the role of the China-Europe freight trains and make greater use of them, especially when transportation is strictly restricted at harbors and airports," said Guo. Source: Xinhua
Global economy could shrink by 1 pct in 2020 due to COVID-19 pandemic: UN
x1
Global economy could shrink by 1 pct in 2020 due to COVID-19 pandemic: UN
2 Apr 2020
The global economy could shrink by up to 1 percent in 2020 due to the COVID-19 pandemic, and may contract even further if restrictions on economic activities are extended without adequate fiscal responses, according to analysis released Wednesday by the UN Department of Economic and Social Affairs (UN-DESA). The UN-DESA briefing finds that millions of workers are at risk of losing their jobs as nearly 100 countries close their national borders. That could translate to a global economic contraction of 0.9 percent by the end of 2020, or even higher if governments fail to provide income support and help boost consumer spending. According to the forecast, lockdowns in Europe and North America are hitting the service sector hard, particularly industries that involve physical interactions such as retail trade, leisure and hospitality, recreation and transportation services. Collectively, such industries account for more than a quarter of all jobs in these economies. As businesses lose revenue, unemployment is likely to increase sharply, transforming a supply-side shock to a wider demand-side shock for the economy. The severity of the impact will largely depend on the duration of restrictions on the movement of people and economic activities and on the scale and efficacy of responses by national treasuries. Against that backdrop, the UN-DESA is joining a chorus of voices across the UN system calling for well-designed fiscal stimulus packages which prioritize health spending and support households most affected by the pandemic. "Urgent and bold policy measures are needed, not only to contain the pandemic and save lives, but also to protect the most vulnerable in our societies from economic ruin and to sustain economic growth and financial stability," said Liu Zhenmin, UN undersecretary-general for economic and social affairs. The analysis also warns that the adverse effects of prolonged economic restrictions in developed economies will soon spill over to developing countries via trade and investment channels. A sharp decline in consumer spending in the European Union and the United States will reduce imports of consumer goods from developing countries. Developing countries, particularly those dependent on tourism and commodity exports, face heightened economic risks. Global manufacturing production could contract significantly, and the plummeting number of travellers is likely to hurt the tourism sector in small island developing states, which employs millions of low-skilled workers. The UN civil aviation body, the International Civil Aviation Organization, welcomed the commitment by leaders of the G20 major economies late last week indicating that bold fiscal support was needed to safeguard the global travel industry, in order to aid the global recovery in the coming months. Meanwhile, the decline in commodity-related revenues and a reversal of capital flows are increasing the likelihood of debt distress for many nations. Governments may be forced to curtail public expenditure at a time when they need to ramp up spending to contain the pandemic and support consumption and investment. Elliot Harris, UN chief economist and assistant secretary-general for economic development, said the collective goal must be a resilient recovery which puts the planet back on a sustainable track. "We must not lose sight how it is affecting the most vulnerable population and what that means for sustainable development," he noted. Source: Xinhua
First RMB bond issued in Kazakhstan
x1
First RMB bond issued in Kazakhstan
2 Apr 2020
The first yuan-denominated bond, issued by the China Construction Bank (CCB) Astana branch, has been listed on Kazakhstan's Astana International Exchange (AIX) and the Hong Kong Exchanges and Clearing Limited (HKEX), the press service of the CCB Astana branch announced on Wednesday. It is the first RMB bond issued in Central Asia. The funds raised will be used to support local infrastructure and Belt and Road projects in Kazakhstan. With an interest rate of 2.95 percent per annum, the bond in the amount of 1 billion yuan (141 million U.S. dollars) is available for professional investors. Kairat Kelimbetov, governor of the Astana International Financial Center (AIFC), said the listing was a result of close Kazakhstan-China financial cooperation under the framework of the Belt and Road Initiative. "The bond will promote the development of an offshore RMB market in the AIFC, Kazakhstan and Central Asia," he said. Tim Bennett, CEO of the AIX, said the bond is the first RMB product of the AIX Belt and Road market. It provides an innovative model for funding Belt and Road projects in Kazakhstan, which will contribute to the development of the local economy and create new jobs. "The CCB Astana branch will continue to work with the AIFC and the AIX on building an offshore RMB center to promote local currency settlement in China and Kazakhstan," Wang Songhua, senior executive officer of the CCB Astana branch, told Xinhua. The AIFC, Kazakhstan's regional financial hub, was founded in January 2018. As one of the 55 China-Kazakhstan production capacity cooperation programs, the AIX, with Shanghai Stock Exchange and the Silk Road Fund among the shareholders, is a major participant of the AIFC. China Construction Bank officially opened its Kazakh branch last September. Source: Xinhua
ICC open letter to G20 trade ministers
x1
ICC open letter to G20 trade ministers
1 Apr 2020
Following the first ever virtual G20 Summit on 26 March 2020, ICC Secretary General John W.H. Denton AO wrote to G20 Trade Ministers ahead of their meeting on Monday 30 March, with a roadmap for G20 countries to use trade policy to fight COVID-19 and rebuild the future. In the letter, ICC outlines 10 concrete ideas for trade ministers with three core goals in mind – to speed the health response to COVID-19, to keep trade flowing to restore growth and safeguard jobs, and to maintain momentum on reform of the trading system. Please click here to download the open letter. Source:iccwbo.org
China steps up support for work resumption in free trade zones
x1
China steps up support for work resumption in free trade zones
1 Apr 2020
China's trade promotion agencies have taken a string of measures to help enterprises in pilot free trade zones return to work, according to the China Council for the Promotion of International Trade (CCPIT). Commercial, legal and trade promotion services were provided by 11 free trade service agencies to companies in pilot free trade zones to facilitate their work resumption, said the CCPIT. Agencies in the provinces of Zhejiang, Guangdong and Sichuan and the municipalities of Tianjin and Shanghai assisted nearly 200 firms to obtain force majeure certificates, covering a total contract value around 27 billion yuan (about 3.81 billion U.S. dollars) to help companies avoid penalties for not being able to meet contractual obligations amid the epidemic outbreak. Over 100 firms in Zhejiang, Guangdong and Sichuan, as well as Shanghai, Tianjin and Chongqing received remote consulting services on intellectual property rights, while 600 companies were provided with legal services, according to the CCPIT. Local trade promotion agencies also assisted firms in the export of epidemic prevention and control supplies and production certification. Source: Xinhua
COVID-19 road to recovery: What we need to learn from China: Daryl Guppy
x1
COVID-19 road to recovery: What we need to learn from China: Daryl Guppy
30 Mar 2020
Dong, a recovered coronavirus patient, receives a physical test before donating his plasma at a hospital in Nanchang, east China's Jiangxi Province, February 19, 2020. /Xinhua Editor's note: Daryl Guppy is a national board member of the Australia China Business Council. He is the Australian representative with the Silk Road Chambers of International Commerce and an international financial markets technical analysis expert. The article reflects the author's opinions, and not necessarily the views of CGTN. Restore, repair, revive, resuscitate or remodel? These 5Rs define business investment decisions and are a precondition for the big R: Recovery. Examination of China's economic and business response provides clues as to how local businesses may survive, and which businesses are better investments at current sell-down prices. Western economies can and must learn from China's experience. "Remodel" is a major driver. The Chinese e-commerce site Taobao added 1 million new merchants during the quarantine period in China. They and other e-commerce platforms not surprisingly experienced more than 10 percent growth during the period. Ali-Health had a 7,000 percent growth rate so its clear business will need to remodel to embrace e-commerce and social media links in ways that are integral to their business model. These models are no longer just an adjunct to business operations. China's "New Infrastructure" development in 2020 plan reflects this change and is focused on 5G networks, AI, industrial internet, inter-city transit systems, vehicle charging stations and data centers. China's leading role in these areas meant that the COVID-19 response was more sophisticated in terms of internet use than is possible in Western countries where 4G networks were overloaded making contact tracking, e-commerce, e-learning, e-health and even e-entertainment delivery more difficult. For some businesses it will be necessary to restore business connections and develop new networks and logistic chains. Some of their counter-parties did not survive the lockdown. Chinese exporters may find previous business links have fallen victim to a Western economic collapse. Foreign universities may have an uphill task to restore confidence in their support for students. Restoring business connections will take time and effort to rebuild the levels of trust that prevailed prior to the COVID-19 crisis. Businesses that proved that they were not just Jiu Rou Peng You, or wine and meat friends, will find this restoration process easier. This restoration may also be hindered by national policies, with some countries determined to reduce their dependence on China for political reasons. They are using the COVID-19 crisis as an excuse to justify their narrative that the world is too dependent on China and that this must change. It's an irony that some of the strongest proponents of this policy have no hesitation in sourcing masks and medical supplies from China. China is preparing for its economic recovery from COVID-19 with e-commerce platforms. /Xinhua Of all the 5Rs, business repair is easiest. With the exception of airlines, these are business activities that slowed during the quarantine period in China, but did not come to a complete stop. These companies suffered some damage, but this is easily repaired. Demand for household goods, for everyday items and services are returning to normal fairly quickly. Some, like car sales and tourism, will take longer. These businesses were damaged by the lockdown, but not destroyed. Fiscal support measures including a suspension of government fees and charges and capital injections into credit markets has helped them to quickly get up and running. They form the majority of business survivors. Access to easy credit is a key requirement for those companies that need to revive. For them, the lockdown was a near-death experience. These are the companies that almost went to the wall as cash flow dried up. It's not that they were marginal businesses prior to COVID-19. For many, the business model was based on just-in-time delivery and that's what kept the cash flowing. When orders and payments evaporated the weaknesses in the business model was exposed. This has continued beyond a resolution of the COVID crisis in China with the collapse or slowdown on Western economies. If the businesses can be revived, then they will need to remodel their business approach. This is not just a domestic economic issue in China. It's also an issue impacting global supply chains and Western business approaches. These businesses can be revived but the question is to decide if revival of the old business model remains appropriate. Those in need of resuscitation are not necessarily in need of rescue from the scrapheap of outdated business practices. The high-tech start-ups in Shenzhen are in the cash-burn phase of development, the business that was unfortunate enough to first open its doors in anticipation of Chinese New Year crowds and the airline industry all need resuscitating capital investment. There is the opportunity for investors to buy listed companies at bargain prices. For unlisted companies the priority is the search for new capital, domestic or foreign sourced. Delivery companies like SF, medical suppliers, the online portals, e-commerce market places, and essential service providers all thrived during the lockdown. This expansion was due to exceptional circumstances and their growth will most likely slow and offer fewer opportunities for investment or business emulation. These changes in economic structure cannot be ignored but first-mover advantage has been dulled. Just to talk of business recovery is too simplistic. Every Chinese business emerging from the quarantine period was faced with at least one of the 5Rs and these have to be resolved before any thought was given to business recovery. How they were resolved is what businesses must learn from China. (Chongyang Institute for Financial Studies at Renmin University of China also contributed to this article.) Source: CGTN
Zhangjiajie Donates 10,000 Surgical Masks to Italy’s Montagnana
x1
Zhangjiajie Donates 10,000 Surgical Masks to Italy’s Montagnana
26 Mar 2020
On March 11 of 2020, WHO Director-General Tedros Adhanom Ghebreyesus said at a press conference that the COVID-19 outbreak can be characterized as a "pandemic". As of March 25, there has been over 400,000 confirmed cases in more than 160 countries and regions. As the hardest-hit country in Europe, Italy has reported 74,386 cumulative confirmed cases with 7,503 lives claimed up to 18:00 of March 25. The city of Zhangjiajie in China's Hubei Province, the rotating presidency city of the Silk Road Urban Alliance (SRUA) initiated by Silk Road Chamber of International Commerce, donated 10,000 surgical masks to SRUA member city Montagnana to support their fight against the epidemic. Liu Ge'an, mayor of Zhangjiajie and SRUA rotating president, expressed his firm belief that Italy will eventually win the battle against the epidemic in his letter addressed to Ms. Loredana Borghesan, mayor of Montagnana. Surgical masks for donation As the quote in the Italian opera Turandot goes, “Vanish, o night! At dawn, We will win!”We believe that with the joint persistence and efforts of the governments and people of all countries, the dawn will soon come to Italy, Europe and the world. Profile of Silk Road Urban Alliance Silk Road Urban Alliance was established at the 2018 Silk Road Business Summit in Zhangjiajie on October 16, 2018, assembling 65 city members from 22 countries. The 2019 (Zhangjiajie) Annual Conference of Silk Road Urban Alliance was held in zhangjiajie on December 9, 2019, attracting more than 200 participants from 53 cities of 25 countries and regions along Belt and Road. Ms. Loredana Borghesan, mayor of Montagnana addressed at the opening ceremony during the conference. Letter of Intent on the Establishment of Sister-City Relationship between Zhangjiajie and Montagnana was signed. The two cities agrees to strengthen exchanges and cooperation in tourism, environmental protection and other aspects and to make efforts to promote the friendship between China and Italy. Mayor Liu Ge'an and Mayor Loredana Borghesan signed the letter of intent on behalf of their respective cities
Star of March - Çalık Holding Group
x1
Star of March - Çalık Holding Group
19 Mar 2020
Introduction Established by Ahmet Çalık in 1981, Çalık Holding operates in energy, construction, mining, textile, finance, telecommunications and digital sectors. With operations in 22 countries across Central Asia, Balkans and MENA, the Group employs 25,000 people. Çalık Holding stands out as is a major player in Turkey and in the world with its subsidiaries: Çalık Enerji in the energy sector; Çalık Petrol in oil exploration; YEDAŞ, YEPAŞ, Limak joint venture KEDS and Kiler joint ventures ARAS EDAŞ and ARAS EPAŞ in electricity distribution; Lidya Madencilik in mining; Gap İnşaat in construction; Aktif Bank, BKT (Banka Kombetare Tregtare) Albania and BKT Kosovo in finance; Çalık Denim and Gap Pazarlama in textile; Albtelecom Albania in telecom; and Çalık Dijital in digital. Throughout its operations across the world, Çalık Holding is known for its integrity, reliability, robust financial structure and long-term collaborations with international companies. It develops innovative business models and moves forward in its lines of business with sustainable growth. Dedicated to creating lasting value in every geography it operates, Çalık Holding realizes pioneering projects for society and business world through its corporate processes, services and products developed with Industry 4.0, Society 5.0 and sustainability approaches it has embraced. Exchanges Between SRCIC & Çalık Holding Group On May 2, 2018, SRCIC delegation, headed by Chairman Lu Jianzhong, attended the Great Silk Road-Towards New Developments Forum andthe Launching Ceremony of Turkmenbashi International Seaportat the invitation of Turkmenistan Foreign Ministry and Çalık Holding Group. During the Forum, Mr. Lu Jianzhong presented the Certificate of Honour for Reviving the Ancient Silk Road to H.E. Gurbanguly Berdymukhamedov. The Turkmenbashi International Seaport was built by GAP İNŞAAT, a subsidiary of the Çalık Holding Group. On behalf of SRCIC, Mr. Lu Jianzhong presents theCertificate of Honour for Reviving the Ancient Silk Road to H.E. Gurbanguly Berdymukhamedov SRCIC Chairman Lu Jianzhong (M) and Honorary Chairman Jemal Inaishvili (R) attending the Launching Ceremony of Turkmenbashi International Seaport On 17 July 2018, Mr. Lu Jianzhong, Chairman of Silk Road Chamber of International Commerce (SRCIC) and President of Tang West Market Group, and Mr. Ahmet Çalık, Chairman of Çalık Holding Group had a meeting in Shanghai. Both sides expressed the willingness on stepping up collaboration in areas including finance, logistics and culture. SRCIC Chairman Lu Jianzhong (L) meeting with Çalık Holding Group Chairman Ahmet Çalık(R) In February 2020, CLK, a Turkey-based logistics and trading company operating in China under the Çalık Group, donated two boxes of FFP2 masks, 480 pieces in total, to help SRCIC employees with the preventive measures during the corona virus outbreak. FFP2 masks donated byCLK to SRCIC Secretariat
Daryl Guppy: Great Panic of 2020 is not the financial crisis of 2008
x1
Daryl Guppy: Great Panic of 2020 is not the financial crisis of 2008
16 Mar 2020
A staff member wearing face mask works at a trading hall of a bank in Seoul, South Korea, March 13, 2020. /Xinhua Editor's Note: Daryl Guppy is a national board member of the Australia-China Business Council.He is the Australian representative with the Silk Road Chambers of International Commerce. He provides China policy advice and market intelligence to Government and business. He is also an international financial market technical analysis expert. The article reflects the author's opinions, and not necessarily the views of CGTN. The Great Panic of 2020 is not the same as the Global Financial Crisis of 2008 (GFC) although some of the Great Panic collateral impacts will be similar. Governments are responding to the Great Panic as if it were a repeat of the GFC and these responses are most likely to be ineffective and may be more economically damaging than expected by supporting perverse outcomes. The GFC was a liquidity and credit crisis. Banks stopped lending to each other and then stopped lending to customers. Without access to reasonable credit the wheels of industry and business soon seized up. The response included a reduction of interest rates, quantitative easing and Governments stepping in to provide credit as a last resort lender. We are still feeling the impacts of these credit policies and world economies remain more fragile in 2020 than they were going into 2008. The appropriate response, led by China, was economic stimulus to maintain demand. China embarked on a massive infrastructure construction that helped to shield countries like Australia from the full impact of the GFC. Other countries followed with their own demand stimulus programs, backed by cheap money, to help expand the economy and preserve jobs in the face of a credit-induced slump in demand. This helicopter money, including direct gifts of money to people, was designed to stimulate demand and this was appropriate. The GFC was, in a very real sense, an economic problem that highlighted fundamental weaknesses in the business model. The Great Panic presents very different core problems. This is not a credit crunch. This is not a demand slump. This is not a problem of the business model. The Great Panic is an emotive response to COVID-19 leading to quarantine action that impedes or closes down a generally healthy economy. Passengers wearing face masks arrive at Henri Coanda International Airport in Bucharest, Romania, March 14, 2020. /Xinhua Consider this from two perspectives – business and personal. I have a thriving successful business. One of my staff gets COVID-19 so my doors are closed for two weeks. Or, as in Italy, I am forced to close my doors for two weeks. I lose all my business income even though there is no reduction in the demand for my business. I cannot operate because my business has been suspended. It is a business hiatus. However, I am still required to meet my standing costs of office rent, local and State taxes, payment for my staff who are forced to take leave through no fault of their own. I still must service my business loan. I want to do business. I could do business because the demand is still there, and this is the essential difference between the GFC and the current situation. I cannot do business because the Great Panic has forced me to close for 14 days, and if more staff are infected with COVID-19 then that lockdown may be extended for another 14 days. The ongoing lengthy rolling quarantine lockdown with the Diamond Princess cruise ship in Japan is a leading example. How long can my business survive without income? Possibly weeks but probably not months. I will not invest in capital equipment to get a tax break. My capital must be hoarded to meet ongoing business costs whilst my business is closed without income. On a personal level the situation is also different from the GFC. Although I am not sick, I am placed in a 14-day quarantine because someone in my office contracted COVID-19. I have cash to spend but I cannot spend it widely because the shops are closed. My spending is limited to food and Netflix entertainment. I cannot buy a new car or a dress. I cannot take my planned holiday, go to the cinema, or attend the conference. I cannot do these things that maintain or stimulate economic growth because I am locked in my home, or because these public events have been cancelled. I am trying to work from home, but being confined with a young child permanently home from school also makes this difficult. An ever-present danger is that my employer will be forced to stop paying my wages as his business collapses. In the Great Panic I am dis-employed – I have work, but cannot do it effectively because my office is in quarantine. In the GFC, people were unemployed so the challenge was to give them money so they could revitalize demand. The Great Panic is not a demand problem. In the Great Panic, it's less useful to give people money because they simply cannot spend in shops that are closed, or even if they are open, cannot deliver the purchases. They cannot travel to support the domestic tourism industry nor attend fee-paying universities because they are quarantine closed. The Great Panic highlights another significant difference between Western and Chinese economies and that is the rate of household savings. China has a very high rate of personal savings. Western countries typically have a very low rate of savings. By many estimates, the average American family is less than two pay checks away from bankruptcy. Chinese families, on average, have significant higher saving rates. Chinese families locked in extended quarantine used savings to fund their survival. Western families have limited ability to do this and will have to reach deeply into often already extended personal credit facilities to survive. In countries like Australia, they face additional burdens from ongoing high mortgage payments lingering from an overheated property market. China survived the COVID-19 lockdown in part because of a well developed and sophisticated e-commerce structure based on advanced 5G and internet services. The shift to an almost fully digital economy only required a small bridging step because WePay and Alipay were already ubiquitous. Western economies are not as advanced in these areas and this will hinder the ability of people under quarantine to fully satisfy their demand wishes. If your local food delivery service does not accept electronic payment and you have no cash to pay them, then your demand remains unfilled. Western governments will continue to deploy inappropriate strategies until they acknowledge that the Great Panic is a beast of a very different nature to the GFC. The economy needs support to overcome the quarantine-induced business activity hiatus by reducing the cost burden on business survival such as tax holidays, suspension of government charges and fees and income support. The appropriate Great Panic response does not require demand and investment stimulus. Grandma Ma's noodle shop doesn't benefit from a new freeway. Ms. Smith's service sector business doesn't need a new bridge over the river. Mr. Jones doesn't need tax breaks for expenditure on new equipment because he is too busy trying to survive an income drought. They all need capital relief from fees and charges so they can quickly restore business to meet existing demand after the COVID hiatus. (Chongyang Institute for Financial Studies at Renmin University of China also contributed to this article.) Source: CGTN
Zhangjiajie Introduces 30 Measures to Revive Tourism Market
x1
Zhangjiajie Introduces 30 Measures to Revive Tourism Market
20 Feb 2020
Since the outbreak of the novel coronavirus pneumonia, the city of Zhangjiajie in Hunan Province, the rotating presidency city of the Silk Road Urban Alliance initiated by Silk Road Chamber of International Commerce, has gained impressive victory over the epidemic with rapid response, mobilized actions and precise tactics. By 10:19 am of February 17, 2020, all five patients infected with coronavirus in Zhangjiajie had been discharged from hospitals. Among all cities in Hunan Province, Zhangjiajie was the last to have infected cases, yet the first and the fastest to treat all patients with success. The last patient infected with coronavirus in Zhangjiajie being discharged from hospital (Source: Hunan Daily ) Confronted with the epidemic, more than 1.7 million Zhangjiajie people demonstrated their courage and unity, and mobilized all sectors to fight the battle. On February 15, Zhangjiajie dispatched a team of 20 medics to the epicenter Wuhan in Hubei Province for support. On February 18, Zhangjiajie donated 152 tons of supplies to Wuhan, including vegetables, noodles, instant food, drinks, disinfectant, surgical masks and so forth, which arrived in Wuhan in the morning of February 19. Vehicles carrying supplies are ready for departure to epicenter Wuhan in Hubei Province. (Source: Zhangjiajie APP) On February 18, Zhangjiajie city enacted the 310 Action Plan for Supporting the Recovery of the Tourism Market in Zhangjiajie City, which includes 30 measures to boost the confidence of tourism industry and the revival of the tourism market. Zhangjiajie National Forest Park (Source: Zhangjiajie tourism website) The 30 measures covered policy support, product transformation, service improvement, marketing management,etc.. The ten measures to boost the tourism market are specified as such: After Zhangjiajie's scenic spots are re-opened, medical professionals across the country are entitled to free entry to and free transportation inside the scenic spots managed by 33 companies in Zhangjiajie until the end of this year; Within two months after re-opening the scenic spots, all tourists enjoy the policy of "buy one get one free" by 27 companies of scenic spots in Zhangjiajie, except for preferential tickets. In this period, 15 hotels and 18 inns will offer “one night for stay and one night for free” policy; In order to encourage travel agencies to organize tourist groups, travel agencies that attract more tourists, exert greater influence and offer better services will be awarded 50,000 yuan or more; In order to restore the traffic as soon as possible, subsidies and incentives shall be offered to airlines and dedicated rail routes; A series of projects will be carried out to re-energize the tourism market, such as "Zhangjiajie Online Sightseeing" and "Anti-epidemic Heroes gathering in Zhangjiajie". To heighten the morale and strength of tourism companies to survive this hard time, the Zhangjiajie municipal government has formulated 10 policies, including setting up special support fund, increasing financing measures, tax policy support, reducing business operating costs, higher rewards to companies making tremendous efforts, temporary and partial refund of the deposit for quality tourism service delivery, stronger employment support measures, reduction and lenient terms for rent, gas and water bills, and incorporating an oriented support system for municipal leaders to help companies more efficiently. Source: People's Daily APP; Hunan Daily; Zhangjiajie News APP, etc.
Wiseway Logistics have gained approval for mercy-dash to Wuhan
Wiseway Logistics have gained approval for mercy-dash to Wuhan
19 Feb 2020
Following a collaboration of minds and effort from the Australian-Chinese business community, Australian Cross Border air freight company, Wiseway Logistics (Wiseway), has received permission from the Chinese Government to charter the first freighter flight directly to Wuhan to deliver much-needed humanitarian aid. Florence Lee, the Managing Director of Wiseway, said: “We are asking Australian manufacturers to donate any products which may be helpful to assist in fighting the outbreak. There has been a ground-swell of support from the corporations and the community groups making donations to send directly to the centre of the outbreak and support Coronavirus relief efforts. For Wiseway, this is an inaugural chartered flight to deliver cargo and it is a first direct flight from Sydney to Wuhan, since the virus outbreak. "The donations include much-needed protective clothing for healthcare professionals, including surgical and N95 masks, along with medical equipment, decontamination products and medications. We are very pleased that we can send the first freighter aircraft out between Saturday, 22 February to Tuesday, 25 February depending on the time slot allocation from Sydney airport,” said Ms Lee. The mercy-dash will have a strict two-hour turnaround in Sydney airport. In the interest of safety, the pilots conducting the flight will not leave the aircraft, and the flight will carry no passengers. Freight will be unloaded in Wuhan by personnel from humanitarian groups who will meet the flight at the airport. Call-out for more corporate donations Ms Lee said, “This Monday we collected 25 tonnes of goods but have capacity for 100 tonnes. We will facilitate and welcome more donations.” What to donate Personal protective clothing and equipment (surgical masks, N95 respirator masks, gloves, gowns, goggles) Non-perishable foods (wellbeing improvement products, health supplements, powdered milk) ASX-listed Wiseway is the number one freight company operating between Australia and China and has the logistical capability to manage the delivery from donors to the frontline. All costs associated with the flight are being covered by Wiseway as part of their contribution to the global fight against the Covid-19 virus outbreak. Wuhan Wuhan is home to 11 million residents and has been in "lock down" since January 23, which has greatly restricted the flow of essential supplies into the city. Estimates are that 200,000 frontline healthcare workers are currently at risk in China due to inadequate protective clothing, with more than 1,700 infections and six deaths reported among healthcare workers. To donate: Donations can be made by 21 February 2020 (12 o’clock midday) via the following collection points at Wiseway’s warehouses: Sydney: 9-15 Alfred Rd, Chipping Norton NSW 2170 + 61 2 9725 6688 Melbourne: 85 Northgate Dr, Thomastown VIC 3074 + 61 3 9464 1888 Adelaide: 22-26 Alfred Ave, Beverley SA 5009 +61 8 8268 2888 Brisbane: 30 Woomera Pl, Archerfield QLD 4108 + 61 7 3277 6888 Perth: 9 Ferguson St, Kewdale WA 6105 + 61 8 9353 5688 Auckland, New Zealand: Auckland Airport, 74 Richard Pearse Dr, Airport Oaks AK 2022 +64 9 256 1888 For further information, please contact: Florence Lee Managing Director P: + 61 2 9790 7888 E: admin@wiseway.com.au For media enquiries, please contact: Kate Maher Symbol Strategic Communications P: +61 2 8011 0592 or +61 405 778 205 Source: Official website of Australia China Business Council
Chairman's Message

Greetings from the Silk Road Chamber of International Commerce! On behalf of SRCIC, I would like to welcome you to our website!

Member DirectoryMore
cacciunion_of_arab_chambers俄罗斯联邦国旗阿富汗伊斯兰共和国国旗阿塞拜疆共和国国旗埃及爱沙尼亚共和国国旗澳大利亚巴布亚新几内亚独立国国旗巴基斯坦伊斯兰共和国国旗巴勒斯坦国国旗白俄罗斯共和国国旗波黑国旗波兰玻利维亚共和国国旗俄罗斯联邦国旗菲律宾哥伦比亚国旗格鲁吉亚共和国国旗韩国吉布提共和国国旗吉尔吉斯共和国国旗科索沃共和国国旗黎巴嫩共和国国旗立陶宛共和国国旗马其顿共和国国旗蒙古国国旗孟加拉人民共和国国旗摩尔多瓦共和国国旗墨西哥尼泊尔联邦民主共和国国旗塞尔维亚国旗塞浦路斯共和国国旗斯里兰卡民主社会主义共和国国旗斯洛伐克共和国国旗塔吉克斯坦共和国国旗图瓦卢国旗土耳其共和国国旗乌克兰国旗希腊共和国国旗亚美尼亚共和国国旗伊朗伊斯兰共和国国旗以色列国旗意大利