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Briefings - 103. page

China Has a Surplus of Delivery Workers as Unemployment Rises and Earnings Decline

In China, a growing number of workers are resorting to the food delivery industry for employment as they struggle to secure jobs elsewhere. However, the industry is facing increasing competition as the surplus of delivery workers makes it difficult for individuals to secure enough orders to earn a decent income. Despite recruitment efforts by platforms such as Meituan, there are now more delivery workers than there is demand for their services. As a result, workers are facing intense competition and low earnings, with many struggling to make ends meet. The challenging working conditions were highlighted in a recent Chinese media report that described the cramped living quarters and difficult financial situation faced by many delivery workers. While food delivery work has been a lifeline for struggling workers, the long-term sustainability of the industry as a source of employment is now being questioned.

Source: World Journal (Taiwan), April 14, 2023
https://www.worldjournal.com/wj/story/121474/7099432

Briefings | | |   Economy/Resources

Chinese Local Governments Cut Non-Official Personnel to Reduce Expenditures amid Fiscal Pressures

Amid financial pressures, many local governments in China are reducing the number of non-official personnel to cut down on expenses. This move follows the release of the “Plan for the Reform of Party and State Institutions” by the Chinese Communist Party and the State Council in March 2021, which aimed to streamline personnel structures. Cities such as Harbin, Shiyan, Chuxiong, and Huizhou have started reducing non-official staff. Shiyan city in Hubei province reportedly saved around RMB 15 million (US$2.2 million) after removing 326 non-official personnel, which accounted for around 9 percent of total non-official staff. Chuxiong plans to reduce non-official personnel by 265, or around 6.5 percent, which would lead to a decrease of approximately RMB 3.6 million (US$0.5 million) in government expenditure.

The reduction in non-official personnel is expected to reduce the financial burden on local governments, including salaries, social security contributions, and medical insurance costs. Furthermore, since non-official personnel are not included in the official headcount, their qualifications and abilities can be uneven and they may not be able to handle all tasks. Therefore, cutting non-official staff could allow for more experienced personnel to handle affairs, leading to better government efficiency.

Source: Central News Agency (Taiwan), April 11, 2023
https://www.cna.com.tw/news/acn/202304110140.aspx

Briefings | | |   Economy/Resources

UDN: Apple’s India Focus Enhanced Taiwanese Supply Chain

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that, Apple’s rush to “Made in India” has been fruitful, with over US$7 billion worth of iPhones assembled in India in its last fiscal year. This means tripling iPhone production in the world’s fastest growing smartphone market. Foxconn, Wistron and Pegatron played an important role. The three major Taiwanese foundries’ Indian manufacturing business grew simultaneously and became big winners. With the help from its Taiwanese partners, Apple produced about 7 percent of iPhones in India in the last fiscal year, a huge jump from the previous 1 percent. In the current fiscal year, Apple assembled more than US$7 billion in iPhones in India by the end of March, of which US$5 billion was exported, nearly four times the amount in the previous year. Apple may attempt to produce the next generation of mobile phones simultaneously in India and Mainland China, possibly in the fall of this year, which will be the first time that Apple mobile phones get assembled simultaneously in China and India. A quarter of Apple’s phones could be assembled in India by 2025, if suppliers continue to expand aggressively.

Source: UDN, April 14, 2023
https://udn.com/news/story/7240/7096899

Briefings | | |   Geo-Strategic Trend Information/Technology

Ukraine Listed Xiaomi as Russia’s “International Sponsor”

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that, the Ukrainian National Agency for the Prevention of Corruption issued an announcement, adding Xiaomi to the list of so-called “war sponsors” and imposing sanctions. The “Sponsors of International War” list includes a number of foreign companies that Ukraine believes have been “funding” Russia since the outbreak of the Russia-Ukraine conflict. Most of these companies did not withdraw from the Russian market after February 24 last year. The reason for Xiaomi’s inclusion on the list is that “the company continues to operate in Russia and maintains a leading position in the Russian smartphone market.” The announcement also cited some of Xiaomi’s efforts to increase the size of its Russian office staff. Since 2018, Xiaomi has ranked first in the sales of online stores in Russia, and has a large offline official authorized retail network throughout Russia. Based on the data for the third quarter of 2022, compared with the previous quarter, Xiaomi’s supply to Russia has increased by 39 percent. Currently, Xiaomi ranks third in the global smartphone shipment rankings, with a global market share of 12.8 percent.

Source: NetEase, April 15, 2023
https://www.163.com/dy/article/I2ATRES80512B07B.html

Briefings | | |   Geo-Strategic Trend Information/Technology

North Korea Successfully Launched Solid-fuel Ballistic Missile

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that, according to the Korean Central News Agency, North Korea successfully test-fired a ballistic missile using solid fuel. General Secretary of the Workers’ Party of Korea and Chairman of the State Council Kim Jong-un guided the test launch. South Korea’s Joint Chiefs of Staff confirmed the North Korea missile launch into the eastern waters of the Korean Peninsula that day, and the South Korean military is analyzing specific parameters such as the missile type and flight distance. This is North Korea’s first launch of a ballistic missile 17 days after it launched a short-range ballistic missile (SRBM) on March 27, and it is also the ninth ballistic missile launch this year. It is worth noting that Kim Jong-un, the supreme leader of North Korea, presided over the Sixth Enlarged Meeting of the Eighth Central Military Commission of the Workers’ Party of Korea on the 10th, emphasizing the necessity of expanding the “war deterrent force.” Also, according to NHK, the Japanese government issued a nationwide instantaneous warning around the same time, indicating that North Korea was suspected of launching a ballistic missile. Later, Japan’s Defense Ministry announced that a ballistic missile launched by North Korea had landed, but did not say where it landed.

Source: Sina, April 4, 2023
https://news.sina.com.cn/w/2023-04-14/doc-imyqhyiq6569030.shtml

Briefings | | |   Geo-Strategic Trend

Chinese Scholar: Deflation is Here

According to Liu Yuhui, a Professor at the Institute of Economics, Chinese Academy of Social Sciences, China’s economy has fallen into recession.

“In a word, the current economic situation in China is that deflation has begun, and the economy has fallen into the recession,” Liu wrote in an article published recently. The following summarizes his view on the issue of debts.

In the previous 15 months, China’s M2 has increased by more than 40 trillion. But it has not stopped the economy from sliding into deflation.

There are 1.4 billion people in China. According to the statistics of China’s central bank, 700 million people are now in debt. If children and older people are excluded, almost everyone in the country is in debt.

The total debt of the household sector accounts for as much as 137.9 percent of its disposable income, and the debt ratio of American households is about 90 percent in the same period. There is a more than 40 percentage points gap between China and the United States.

The ability of households to pay is constrained significantly. The annual interest payment accounts for nearly 15% of disposable income to cope with such debts. In the same period in the United States, this figure was 7%. From January to February 2023, the total amount of credit in China’s household sector was only 290 billion, less than 300 billion.

The high debt ratio of 137.9 percent today is much worse than the below 80 percent in 2015. This radio doubled in seven years. As a result, the ability and willingness to spend and borrow in the entire economy are rapidly collapsing.

Liu believed a breakthrough leading to China’s economic recovery in 2023 is indeed difficult.

Source: iNewsDB, April 12, 2023
https://bit.ly/3UJVnew

Briefings | | |   Economy/Resources

RFI Chinese: Chinese Local Officials Flock Abroad to Seek Investments

Radio France Internationale (RFI) Chinese Edition recently reported that, since December, large delegations of officials from across China have already made hundreds of visits to Asia and Europe. Local governments have been scrambling to meet growth and employment targets. According to three sources, local officials, along with their municipal and provincial supervisors and local businesses, have been traveling abroad more than ever before. The Chinese economy has paid a huge price due to China’s strict Zero Covid policy. After three years behind closed borders, officials have traveled to Hong Kong, Paris and the like within days of the restrictions being lifted. Their urgency underscores the pressure on local governments to boost growth while saddled with a cumulative US$9 trillion in debt. A video that was posted online by the government of the eastern province of Jiangsu showed a 200-member Chinese delegation even chanting slogans like “grab new orders” as they boarded a private jet bound for Europe at 1 am. Just two days after China abruptly lifted the Zero Covid restrictions, that delegation alone was said to be scheduled to hold more than 230 business meetings in Europe. Wuxi, which is close to the commercial center of Shanghai, held 85 signing ceremonies during a 7-day trip to Hong Kong, Macau and Shenzhen, with a total transaction value of RMB 156 billion yuan (around US$22.7 billion). However, many foreign investors are still complaining about the unfair playing field, intellectual property theft and unpredictable rules for overseas companies.

Source: RFI Chinese, April 7, 2023
https://bit.ly/3KFecLp

Briefings | | |   Economy/Resources

Chinese Schools and Kindergartens Close Down as Birth Rate Drops

China’s Primary Schools Dropped by 80,000 in 10 Years. According to data recently released by China’s Ministry of Education, there were 149,100 primary schools in 2022, compared to 229,000 in 2012, a decline of 79,900 or 35 percent.

The chances of any improvement seem slim. In 2022, there were 289,200 kindergartens in China, a decrease of about 5,600 compared with the previous year.

Behind the decline in the number of kindergartens and primary schools in China is the sharp drop in the number of newborns.

According to data released by the CCP this year, there were 9.56 million newborns in China in 2022, with a birth rate of only 6.77‰ and a natural growth rate of -0.60 percent. This is the first time since 1950 that the annual birth population has fallen below 10 million. CCP data show that China had 10.62 million newborns in 2021, 12.02 million in 2020, and 14.65 million in 2019.

According to the “China Statistical Yearbook 2022,” 13 of the 31 provinces and municipalities directly under the Chinese central government had negative population growth, namely: Tianjin, Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Shanghai, Jiangsu, Hubei, Hunan, Chongqing, and Sichuan.

Analysts observed that China has a history of not releasing actual figures, but one can see a trend from the statistics it does release.

Source: Epoch Times, April 5, 2023
https://www.epochtimes.com/b5/23/4/5/n13965673.htm

Briefings | | |   Economy/Resources Social Stability