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Leadership: Xi Warned to Prepare for Changes in the External Environment

On April 8, the Chinese Communist Party (CCP) Politburo Standing Committee held a meeting on the coronavirus pandemic situation and the economic situation both in China and outside of China. Xi Jinping gave a speech stating, “Everyone must adhere to bottom-line thinking (thinking about the worst scenario) and have the mental and work preparation to deal with changes in the external environment for a long period of time. The coronavirus prevention and control work against importing the virus from abroad and reinfection internally must not be relaxed.”

Xi’s statement of preparing to “deal with changes in the external environment for a long period of time” caused the media to have a number of discussions. Chinese media focused on the virus containment and on importing the virus from abroad. (Qiushi, #1)

Media outside of the CCP’s control said that the CCP’s worries about external changes, including the international community suing it for the virus pandemic and the external impact on its economy.

Radio Free Asia (#2) commented that it is very rare for Xi to warn about “changes in the external environment.” Even during the toughest time during the U.S.-China trade war, Xi and other CCP officials did not make such a statement. The article quoted Zhang Lifan, an independent historian, who stated that China is worried about international lawsuits against the CCP for coronavirus damage. “Many people said that 120 years ago, in 1900, eight countries sent a joint army to China (and forced the Qing Dynasty to pay a huge indemnity). This time it might be 80 countries that join forces to hold China accountable.”

One article from Radio France International (#3) agreed with the thought. “Xi was giving a warning. What he didn’t speak about directly is a very severe issue that, after the pandemic is over, other countries will hold the CCP accountable for the damages from the virus. Initially, this issue was not that urgent, but Beijing’s series of actions in attempt to cleanse itself from the liability have backfired and led to the international community’s great vigilance and condemnation.”

Radio France International (#4) said in another article that Xi’s warning could be linked to the economic crisis in China. On April 10, at a press conference on maintaining foreign trade, Ren Hongbin, the Assistant Minister of Commerce stated that China is willing to expand its cooperation with the U.S. and other trade partners. Ren said that China’s trading companies are facing severe situations, including reduced orders, increasing costs, a poor international logistics process, and the blocking of supply chains.

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Medical Suppies: China Imposed Restrictions to Stop the Export of Medical Supplies

The Wall Street Journal reported that, according to a U.S. State Department memo and information from businesses, China has imposed export restrictions to stop the export of medical supplies.

China implemented new export restrictions in April, requiring that its National Medical Products Administration certify its goods as a stamp of quality control. It has requested that some products, such as masks, be checked multiple times.

U.S. companies 3M, Cellex, Inc., Emory Healthcare, General Electric, Owens & Minor, Inc. and PerkinElmer, Inc. have been impacted by China’s export controls. Some companies have been able to get products shipped following negotiations with the Chinese government, while others remain in limbo.

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Source: Wall Street Journal, April 16, 2020
https://www.wsj.com/articles/chinas-export-restrictions-strand-medical-goods-u-s-needs-to-fight-coronavirus-state-department-says-11587031203

Diplomacy: France Called in China Ambassador Because of Chinese Embassy’s Remarks

Radio France International reported that France’s Foreign Minister Jean-Yves Le Drian called in China’s Ambassador Lv Shaye for publishing articles criticizing France and Western countries for slandering China.

The Foreign Minister said that he expressly disagrees with some of the recent remarks of the People’s Republic of China’s Ambassador to France. He said that some publicly expressed opinions are not in line with the good bilateral relations between France and China. The French Minister of Foreign Affairs said that some comments were related to the containment of the new coronavirus.

On April 12, China’s Embassy in France published an article, “Reverse the facts that had been reversed – the observations on the novel coronavirus epidemic by a Chinese diplomat in France.” The article praised China because it had implemented the most comprehensive, most complete, and most strict measures to contain the coronavirus. It also criticized “certain self-claimed objective media, experts, and politicians in the West who did not contribute ideas to contain the virus in their country or the world, but spent their time on slandering and attacking China.”

The article said, “We see that, in Western countries, politicians attack each other for their votes; (some country) proposed a ‘group immunization’ strategy to leave the public to resist the slaughter of the virus on their own; (some countries) grabbed other’s epidemic prevention materials; (some countries) bought epidemic prevention materials with public money and sold them to private companies for profit; (some countries) let the elderly in nursing homes sign the ‘Consent to Give up Emergency Rescue;’ nursing home staff members collectively fled from their duties without permission, causing many elderly to starve and to die; (one country) fired an aircraft carrier captain for requesting that infected sailors be permitted to land ashore for treatment… But we didn’t see any major Western media reports on them or provide in-depth investigations that reveal the truth. Where is the conscience of these fair and objective media and experts? Where are their professional ethics?”

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Death Count: China Revised Wuhan Death Count

On April 17, the Wuhan Municipal Novel Coronavirus Epidemic Prevention and Control Command Center issued a notice to revise the infection count and death count in Wuhan City, Hubei Province.

#1: The report said that, according to a thorough check, by April 16, the cumulative infection count in Wuhan was 50,333, with an adjustment of 325 more cases; the cumulative death count was 3,869, with an adjustment of 1,290 additions. The report said the data gap was caused by people dying at home or by medical facilities’ inability to report data promptly. (China’s official government website)

#2: In his tweet, President Trump expressed doubt about the revised numbers because it is still too small compared to the numbers in the U.S.: “China has just announced a doubling in the number of their deaths from the Invisible Enemy. It is far higher than that and far higher than the U.S., not even close!”

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Economy: Why Does China Give Out Consumption Vouchers?

To help their people survive the hardship due to the widespread coronavirus pandemic, major countries have developed economic stimulus packages and provided money to their people. However, China did not do that this time. Beijing is betting that the consumption vouchers that it pushed the local governments to hand out will build up consumption in China.

These vouchers, normally will expire within a certain period, e.g. 30 days, and are limited to consumption in the local area.

Stock Times reported that Li Xunlei, Chief Economist at Zhongtai Securities, a large security holding company under the Shandong Provincial government, said that, in 2009, when handling the secondary mortgage crisis in China, Hanzhou City, Zhejiang Province offered its residents 1 billion yuan (US $140 million) in consumption vouchers, and the city’s total annual consumption increased by 15.5 billion yuan. This showed a 15 times leverage from the consumption voucher.

Li is against the government spending so much money on infrastructure development, which does not directly stimulate consumption, and also creates excess housing supply and future problems.

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Hiding Information: Document Showed the CCP Hid Info for Six Critical Days of Virus Containment

Associated Press (AP) has obtained an official document from China that showed the Chinese Communist Party (CCP) officials knew the severity of the coronavirus and the likelihood of person-to-person transmission on January 14, 2020. The government passed down instructions to local health officials to take cautious measures, but not to disclose it to the public. The government didn’t admit the epidemic outbreak and the person-to-person transmission to the public until January 20, six days later.

AP received documents from an anonymous source in the medical field and verified the authenticity of the documents.

A memo in the documents states that, on January 14, China’s National Health Commission held a confidential teleconference with provincial health officials to convey instructions on the coronavirus from CCP General Secretary Xi Jinping, Premier Li Keqiang, and Vice Premier Sun Chunlan. The memo does not specify what those instructions were.

Ma Xiaowei, Director of China’s National Health Commission, said at the conference, “The epidemic situation is still severe and complex, the most severe challenge since SARS in 2003, and is likely to develop into a major public health event.”

Under a section titled “Sober Understanding of the Situation,” the memo said that, “clustered cases suggest that human-to-human transmission is possible.”

“With the coming of the Spring Festival, many people will be traveling, and the risk of transmission and spread is high. All localities must prepare for and respond to a pandemic.”

Ma demanded officials unite around Xi and made clear that political considerations and social stability were key priorities during the long lead-up to China’s two biggest political meetings of the year in March.

The National Health Commission also distributed a 63-page set of instructions to provincial health officials. The instructions ordered health officials nationwide to identify suspected cases, hospitals to open fever clinics, and doctors and nurses to wear protective gear. The instructions were marked “internal” — “not to be spread on the internet,” “not to be publicly disclosed.”

In public, officials continued to downplay the threat, pointing to the 41 cases that were public at the time.

“We have reached the latest understanding that the risk of sustained human-to-human transmission is low,” Li Qun, the head of the China Center for Diseases Control and Prevention’s (CDC’s) emergency center, told Chinese state television on Jan. 15. A CDC notice shows on that day that Li was appointed leader of a group preparing emergency plans for the level one response.

On Jan. 20, Xi Jinping issued his first public comments on the virus, saying the outbreak “must be taken seriously” and every possible measure pursued. A leading Chinese epidemiologist, Zhong Nanshan, announced for the first time on national television that the virus was transmissible from person to person.

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Source: Associated Press, April 15, 2020
https://apnews.com/68a9e1b91de4ffc166acd6012d82c2f9

Food Supply: China Has 10-15 Days Reserve of Ready-to-Consume Food

As the coronavirus pandemic keeps spreading throughout the world, there have been concerns among the Chinese whether China will run into a food shortage.

#1: At least 17 countries announced restrictions on exports of agricultural products, including wheat and rice. (Caixin)

#2: On April 4, Wang Hong, Director of the Department of Safe Warehousing and Science and Technology, State Food and Material Reserve Bureau, stated at a press conference, “We have built three defense lines. The first one is an ample raw food reserve. The second one is to build 10 to 15 days of ready-to-consume food reserves in large and mid-sized cities and regions that are likely to have price fluctuations. The third one is to set up a number of emergency food processing companies, emergency supply sites, emergency distribution centers, and emergency storage and shipping companies. 88.2 percent of these emergency food processing companies have resumed production. Their daily production capacity can feed the entire population of China, 1.4 billion people, for a day. (China News Agency)

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Infection Count: Heilongjiang Awards 3,000 Yuan for Reporting People Crossing Border

China is concerned about the people infected with coronavirus entering its country from Russia. On April 13, Heilongjiang Province, a major province neighboring Russia, issued an order to reward people for reporting anyone illegally crossing the border.

The Heilongjiang Leading Group, which issued the order in a Response to the Novel Coronavirus, stated that the province fully encourages people to report relevant information regarding people illegally crossing the Heilongjiang border. A person who gives a tip to the government will receive a 3,000 yuan (US $430) award if the information is verified. People who arrest the person crossing the border illegally and hand him to the authorities will receive a 5,000 yuan award.

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