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2022 China’s Housing Sales Plummeted by 5 Trillion Yuan

According to China Real Estate Information Corporation (CRIC), a Shanghai based real estate consulting firm, the overall sales in China’s housing sector in 2022 is expected to approximate 13.5 trillion yuan (US$ 1.95 trillion), a 5 trillion yuan (US$ 0.72 trillion) or 27 percent decrease from the 18.19 trillion yuan (US$ 2.63 trillion) in 2021. 90 percent of the top 100 real estate developers under-performed last year. The number of developers with sales above 100 billion yuan (US$ 14.5 billion) dropped from 43 during the peak time to only 20 today.

Against this backdrop of diminishing domestic and foreign financing channels, developers are facing huge amounts of outstanding debt. They are also facing other pressures, such as the pressure to deliver properties on-time. Starting in September, a few housing giants slashed their housing prices. A few reductions were as deep as 40 percent. Although the marketing and sales drive continued into the 4th quarter, Chinese home buyers continued to show little enthusiasm.

Source: Central News Agency (Taiwan), January 1, 2023
https://www.cna.com.tw/news/acn/202301010137.aspx percent

China’s Official December PMI Numbers Continued Falling

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

CNA: TSMC 3nm Started Mass Production and Factory Expansion

The Primary Taiwanese news agency Central News Agency (CNA) recently reported that TSMC (Taiwan Semiconductor Manufacturing Company) held a 3nm mass production and factory expansion ceremony. TSMC Chairman Mark Liu clearly stated that the company will continue to develop advanced technologies and expand in Taiwan. TSMC previously held a grand relocation ceremony for the Arizona factory in the United States, and decided to expand investment in the U.S. Not only was the mass production technology of the Arizona Phase One Project adjusted from the originally planned 5 nanometers to 4 nanometers, but also new investment was committed for a 3 nanometers plant. The total U.S. investment increased to US$40 billion. The 3nm mass production demonstrated TSMC’s concrete actions in developing advanced technology and expanding advanced production capacity in Taiwan. Also, TSMC’s global R&D center in Zhuke will be officially opened in the second quarter of 2023, with 8,000 personnel expected to be stationed there. In the meantime, the 2nm plant is scheduled to be launched in Zhuke and Zhongke, Taiwan. TSMC is now building super-large fabs, connecting several fabs together through automatic transfer systems and tube bridges. In response to customer demand, TSMC will expand overseas investment at the same time. TSMC (NYSE: TSM), Taiwan Semiconductor Manufacturing Company Limited, is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world’s most valuable semiconductor company and the world’s largest dedicated independent semiconductor foundry.

Source: CNA, December 29, 2022
https://www.cna.com.tw/news/afe/202212290385.aspx

CNA: U.S. and Japan Plan to Cooperate in Developing Semiconductor Talents

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, with China’s significantly enhanced military strength, and in view of the rising security tensions with China, the governments of the United States and Japan are planning to cooperate to develop advanced semiconductor technology talents, with the hope of playing a leading role in the global semiconductor market. The governments are scheduled to hold a discussion in Washington in January at the U.S.-Japan Summit and Ministerial Talks to confirm the cooperative relationship. Discussions of the specifics to strengthen the talent development plan are set to kick off in the coming spring. At present, it is the most feasible plan for the United States and Japan to send researchers or students to research institutions or high-tech companies. The scope of enhanced cooperation will include new generation technologies such as artificial intelligence (AI) and supercomputers. The U.S. and Japan reached a consensus on the principles of semiconductor cooperation in May 2022. That includes promoting the diversification of semiconductor manufacturing capabilities. The two sides have their own strengths in semiconductor technology and will cooperate to complement each other. Japan’s Ministry of Economy, Trade and Industry established the Leading-edge Semiconductor Technology Center (LSTC) in December 2022. The United States is scheduled to establish the National Semiconductor Research Center under NSTC in February 2023. The two countries will strengthen the exchange of semiconductor talents, the practical application of research results, and the mass production of new-generation semiconductor technologies.

Source: CNA, December 29, 2022
https://www.cna.com.tw/news/aopl/202212290373.aspx

China Times: the ICUs in Many Hospitals Are Close to Saturation; Staff Reduction Rate Is up to 70 Percent in Some Hospitals

Regarding the current situation of Covid treatment in China, a reporter interviewed Professor Qiu Yunqing, executive vice president of the First Affiliated Hospital of Zhejiang University School of Medicine and deputy director of the State’s Key Laboratory for Infectious Disease Prevention and Control.

Qiu Yunqing told reporters, “Now that the number of infected people in a number of places has reached a relatively high level. it can be inferred that the peak of severe cases in many places may arrive in 2 to 3 weeks. At this stage, hospitals at all levels urgently need to make preparations for treating severe patients.”  The peak of severe cases will generally appear 2 to 3 weeks after the peak of infection.

Qiu Yunqing added, “At present, the intensive care units of hospitals in many places have reached a relatively saturated state. The treatment time for critically ill patients is generally relatively long and it takes a long time for patients to recover once they are admitted to the hospital or intensive care unit. Therefore, the existing medical resources may very likely be in short supply and it will be a huge challenge for the medical resources and medical personnel in hospitals to treat critically ill patients.”

The challenge to the hospitals has just begun. The Intensive care department, the respiratory department, and the emergency department are the three most over-loaded departments in most hospitals. The heads of the relevant departments of many top hospitals across the country told China News Weekly that, basically, all of the medical staff in these departments were infected. Although they have returned to work one after another recently, most of them came to work with illnesses and there is still a shortage of medical staff.

“The biggest problem facing these hospitals now is the shortage of medical staff. Since last week, a large number of the medical staff in the hospitals have been infected one after another. The staff reduction rate has now reached 70 percent.” On December 20, Zhao Linzhi, a critical care physician at a hospital in Wuhan, told China News Weekly  that some doctors and nurses with mild symptoms were exhausted because of staying up late and working overtime. In addition, some students who had been studying and training in the hospital left the hospital one after another, which stretched the insufficient medical resources even further. What makes Zhao Linzhi most anxious every day is not knowing who will show up to work in the hospital the next day.

With the gradual increase of critically ill patients, over occupancy of hospital beds has occurred in many hospitals.

Source: China Times, December 29, 2022                                                                                                                                                        https://m.chinatimes.net.cn/article/123765.htmlI

RFA: Italy Implements Mandatory Covid-19 Test for Travelers from China; Half Have Tested Positive

Italy’s health minister Orazio Schillaci, said on Wednesday that Italy has ordered COVID-19 antigen swabs and virus sequencing for all travelers from China, where cases are surging.

Milan’s main airport, Malpensa, which began testing passengers from Beijing and Shanghai on December 26, showed almost one in every two passengers had been infected.

“This measure is essential to ensure surveillance and detection of possible variants of the virus to protect the Italian population,” said Minister Schillaci.

On the first flight to Malpensa, 62 passengers from China were tested and 35 tested positive for Covid, the Lombardy’s health chief Guido Bertolaso said on Wednesday. On the second flight, 62 of 120 people tested positive.

Japan said it would require travelers from mainland China to be tested for COVID-19 on arrival starting on Dec. 31. Taiwan would begin testing travelers from China on Jan. 1.

Source: Radio Free Asia, December28, 2022                                                                                                                                                       https://www.rfa.org/mandarin/Xinwen/7-12282022134702.html

Liberty Times : Beijing Ordered Strictly to Prohibit Interviews and Filming at Funeral Homes

China quickly relaxed the epidemic prevention policy on Covid. It has also continued to cover the death numbers in a number of different ways. Recently, an announcement from a funeral home in the eastern suburbs of Beijing has been circulating on the Internet. It reads, “In order to enforce the work discipline strictly, urgent notification is given of  the following relevant requirements: 1. It is strictly forbidden for anyone to be interviewed by any media or organization. 2. It is strictly forbidden for anyone to discuss, answer or disclose the data or the operation of any funeral homes. 3. It is strictly forbidden for anyone to shoot, edit, or send (forward) anything related to the situation of the funeral homes, whether in the form of text messages, WeChat, email, Weibo or other media. Any violations will be dealt with seriously.”

A media reporter called the Beijing Dongjiao Funeral Home on the 27th, but the Home declined to reveal a single word, only saying that they would report to their superiors, who would give a unified reply.

Source: Liberty Times, December 29, 2022                                                                                                                                                                                                   https://news.ltn.com.tw/news/world/breakingnews/4168457

China’s COVID Infection Count

At present, three years after the Wuhan outbreak of COVID, China is suffering a nationwide outbreak. However, the Chinese Communist Party (CCP) hides the actual infection numbers to pretend the pandemic is still under control.

A leakage occurred about a social media chat among officials at Wuxi City, Jiangsu Province. Wuxi city held an internal meeting to inform its officials that the provincial leaders criticized the city for being “too slow to get people into positive (people are not infected fast enough).” The province wants “the majority of the people (of Wuxi) to catch (COVID)” by March, 2023, so that its economy “can resume to a normal rate of operation” afterward.

Another leakage revealed that a social media chat (among officials at Wuxi City, Jiangsu Province) showed that Wuxi city held an internal meeting to inform its officials that the provincial leaders criticized Wuxi for being “too slow to report positive results (having fewer people infected).” The province wants “a majority of the people (of Wuxi) to catch (COVID) once” by March, 2023, so that its economy “can resume to a normal rate of operation.”

Ji’nan Times reported that, on December 23, Bo Tao, Director of the Health Commission of Qingdao City, Shandong Province, stated that each day, there were 490 to 530 thousand people in the 10-million-population of the city who got infected. He predicted the number would increase by 10 percent each day starting on December 24 and 25 and said “the peak is yet to come.”

On the other hand, the CCP’s official count is unbelievably low. It reported 4,103 total infection cases throughout the whole nation on December 23, with only 31 new cases in Shangdong Province.

An Internet posting showed a notice posted at the reception desk of one funeral home. The notice requires people to write and sign a  statement saying: “I confirm that the deceased (insert name) did not pass away due to COVID. I take full responsibility for hiding any information.”

Sources:
1. Epoch Times, December 22, 2022
https://www.epochtimes.com/gb/22/12/22/n13889954.htm
2. Epoch Times, December 25, 2022
https://www.epochtimes.com/gb/22/12/25/n13891448.htm
3. Radio Free Asia, December 27, 2022
https://www.rfa.org/mandarin/yataibaodao/huanjing/gt2-12272022045848.html