Economy/Resources - 47. page

China’s National Bureau of Statistics just released its official PMI numbers for December. Affected by factors such as the impact of Covid-19, China’s purchasing managers’ index (PMI) has declined from the previous month. Among them, the manufacturing purchasing managers’ index, non-manufacturing business activity index and comprehensive PMI output index were 47.0 percent, 41.6 percent and 42.6 percent, respectively. The overall level of prosperity of the Chinese economy has declined. The December Manufacturing PMI fell one percentage point from November. Detailed data showed that both the supply and demand sides have declined. A number of price indices have rebounded. The employment index continued to go down. Affected by Covid, the employee attendance rate of manufacturing enterprises is obviously insufficient. PMI sub-indices of people’s livelihood-related industries continue to expand. In December, the non-manufacturing business activity index was 41.6 percent, down 5.1 percentage points from the previous month and the level of non-manufacturing prosperity continued to fall. The level of prosperity in the service industry has fallen. In December, companies surveyed in the service industry reported that the major impact of Covid had reached 61.3 percent, which was 10 percent higher than it was in the previous month. The market activity of the service industry dropped significantly. Of the 21 categories surveyed, 15 are in contraction territory. Only the construction industry stayed above the expansion line. The construction industry business activity index was 54.4 percent, one percentage lower than November.

Sources:

(1) National Bureau of Statistics, December 31, 2022
http://www.stats.gov.cn/tjsj/zxfb/202212/t20221230_1891388.html

(2) China Net Financial News, December 31, 2022
http://m.gxfin.com/article/finance/xw/default/2022-12-31/5922783.html

During the past three years of Covid control, China has been putting antipyretic and other drugs under strict regulation. As a result, some pharmaceutical companies have gone bankrupt. With the sudden relaxation of control, many companies that did not receive prior notice are facing pressure to scale up production immediately as they do not have an adequate supply.

The “four types of drugs” in China generally refer to antipyretic, anti-cough, antibiotic and anti-viral drugs. Among them, China is the largest producer and exporter of Ibuprofen, the antipyretic and analgesic drug. It accounts for 1/3 of the world’s production.

A social media account that collects articles from around 100 hospital management experts and medical observers posted, “The four types of drugs were strictly controlled in the early stage, but no one told the drug companies to increase production before the relaxation.” The article says that there are more than 500 ibuprofen manufacturers in China, and there is no shortage of raw materials. Even if there were only 200 manufacturers, “if they had been told a month in advance (to increase production and stock), there would be one box for every Chinese.

The City government of Zhuhai in Guangdong province announced that, since December 20, ibuprofen and other drugs have had to be sold in unpacked boxes, with a price cap and real name registration.

Source: Central News Agency (Taiwan), December 20, 2022
https://www.cna.com.tw/news/acn/202212200385.aspx

A sharp U-turn in China’s Covid-19 prevention policy also translates into theatrical changes in the job market. In the past, people who had been tested positive for Covid-19 had difficulties landing a job; they are now given priority when looking for positions.

Due to the suddenly loosened Covid-19 measures, the number of people who are infected with the disease has risen sharply. Some people believe that being infected with the disease is the equivalent of gaining immunity. “It is better to be infected first,” so that they can avoid facing the uncertainty of being infected all the time.

The Wechat account of Legal Daily, a major state newspaper, posted in an article on December 20 that some recent job openings claim that “priority is given to those who have tested positive for Covid-19.” Some even explicitly say, “not interested in those who have tested negative for Covid-19.” A lawyer in Beijing said that this may be employment discrimination and is illegal.

Before the dramatic change in the Covid-19 policy, there was no lack of job market discrimination against those who were Covid positive. Back in October, a large number of Foxconn workers in Zhengzhou, Henan province, left the factory on foot because, among other things, they were afraid that even if they recovered from the epidemic, they would have difficulty finding a job.

Source: Central News Agency (Taiwan), December 22, 2022
https://www.cna.com.tw/news/acn/202212200277.aspx

How serious is the current epidemic in China? It is hard to determine the truth. Take Hangzhou, the capital city of Zhejiang province, for example. Local hospitals have recently seen an exponential increase in Covid-19 fever patients. As many as 90 percent have tested positive. However, the Zhejiang Provincial Health Commission said on December 17 that only 43 cases were confirmed in Hangzhou.

The Qianjiang Evening News, a popular metropolitan newspaper in Hangzhou, reported that the fever clinic at one campus of Zhejiang Hospital saw more than 600 patients on December 16.

In addition, fever clinics at hospitals affiliated with the Zhejiang University School of Medicine reported a single-day attendance of more than 1,000 people.

The newspaper quoted doctors from several hospitals in Hangzhou who said that 90 percent of the patients in local fever clinics had tested positive.

Hangzhou has a residential population of more than 12 million. The Zhejiang Provincial Health Commission reported on Saturday December 17 that the province’s medical institutions reported only 52 new confirmed cases of Covid-19, of which Hangzhou accounted for 43 cases.

Source: Radio Free Asia, December 17, 2022
https://www.rfa.org/mandarin/Xinwen/4-12172022120644.html

According to China’s National Bureau of Statistics, the number of first marriages in 2021 was 11.578 million, down 708,000 from the previous year. This is the first time in many years that the number of first marriages in China has fallen below 12 million, a new low since 1985.

There are many reasons contributing to the continuous decline in the number of first marriages, including the decline in the number of those of a marriageable age, the postponement of the age of a first marriage, economic pressure, and changes in the views toward marriage. In recent years, the average age of a first marriage among young people in China has been significantly postponed to 28.67 years, an increase of 3.78 years from the average age of the first marriage in 2010 (24.89 years).

An official of China’s National Health Commission said that the vast majority of the young population grow up and work in cities and towns, have more years of education, and face more competitive pressure for employment, all of which make the phenomenon of delayed marriage and childbearing very prominent.

Source: Central News Agency (Taiwan), December 2, 2022
https://www.cna.com.tw/news/acn/202212020195.aspx

Caixin just released its official Chinese PMI numbers for November. The Caixin PMI is a well-respected economic indicator monitored globally by financial institutions. Along with China’s manufacturing PMI recording at 49.4, continuing the contraction since August, China’s service industry PMI recorded at 46.7, a decrease of 1.7 percentage points from October. This figure has been below the critical point for three consecutive months. It represents a new low since June. Both service production and demand contracted for the third consecutive month in November. Also, the employment index fell to the lowest level since November 2005 when this sub-item was first created. The survey shows that the government’s Zero Covid policy has restricted travel and prevented personnel from returning to work. At the same time, the decline in business demand has also actively tightened employment. Driven by the rising costs of raw materials, transportation and labor, among other items, the costs in the service industry are still increasing. Under the triple pressure of demand contraction, supply shock, and weakening expectations, the employment index has been at a low level for a long time. In the meantime, the National Bureau of Statistics also released its official Manufacturing PMI/ i. It was at at 48.0, and its official Service Industry PMI was at 45.1. Both Showed accelerated a contraction of production and business activities.

Sources:
(1) Caixin, December 5, 2022
https://pmi.caixin.com/2022-12-05/101974317.html
(2) Central Government Official Site, December 1, 2022
http://www.gov.cn/xinwen/2022-12/01/content_5729754.htm

The northern region of China has been affected by the recent large-scale cold wave. It has thus entered the peak period of winter heating. The southern region has also increased the purchase of thermal coal due to weather that includes low temperatures, rain and snow.

Global Times reported that, according to the China Coal Industry Association, China’s coal production and its sales have both increased since November. It was reported that the Ordos municipality of Inner Mongolia has made every effort to promote the release of coal production capacity this year, with a total of 46 new coal mines entering production and an annual increase of 95.7 million tons of output. At the same time, 80 percent of the original production capacity and 100 percent of the new production capacity will be included in the agreement of guaranteed supply. As of the end of November, the utilization rate of 442 key coal mines in Inner Mongolia (autonomous region), Shaanxi and Shanxi provinces exceeded 82 percent, an increase of 0.6 percent from the end of October.

Source: Global Times, December 6, 2022                                                                                                                                                    https://tech.huanqiu.com/article/4AlwVDc1Tr4