BBC Chinese recently reported that, at a meeting of the Central Committee of the Workers’ Party of Korea (WPK), North Korean leader Kim Jong-Un officially admitted that North Korea is facing a food shortage crisis. He stated, “The food situation that the people now face is becoming increasingly tense.” Due to the flooding that last year’s typhoon caused, the agricultural sector failed to achieve its food targets. There are reports that North Korean food prices have soared. Due to economic difficulties and tensions with the U.S., North Korea’s imports from China recently surged. However, North Korea has just closed its borders again to control the spread of the Covid-19 epidemic. As a result, trade with China dropped sharply. Generally North Korea depends on China for food, fertilizer and fuel. It has been struggling because of international sanctions over its nuclear program.

Source: BBC Chinese, June 18, 2021
https://www.bbc.com/zhongwen/simp/world-57510711

The United Nations Educational, Scientific and Cultural Organization (UNESCO) publishes its science report once every five years. The report for 2021 shows that the global average science expenditure, as a share of GDP, increased from 1.73 percent in 2014 to 1.79 percent in 2018.

The data show that China is the most aggressive of all countries in the world in increasing its science spending, with 44 percent of the incremental global R&D investment coming from China. In 2018, 24.5 percent of global R&D spending was from China, compared to 21.2 percent in 2014.

The report reads that China’s spending on science increased to 2.19 percent of GDP in 2018, compared with 2.03 percent in 2014. Meanwhile, in absolute terms, the U.S. still spends more on science than China, taking into account purchasing power parity, with $460.6 billion in the U.S. and $439 billion in China. Science spending as a share of U.S. GDP rose to 2.84 percent in 2018 from 2.72 percent in 2014. The country with the largest share of science spending in GDP is Germany, where this share increased to 3.09 percent in 2018 from 2.87 percent in 2014.

In addition, the report notes that the country with the most international patents registered is China (31.7 percent of the global total), followed by the U.S. (21.7 percent), Japan (20 percent) and the EU (13.9 percent).

Source: UNESCO
https://www.unesco.org/reports/science/2021/en/race4smarter-development

According to a joint report by the US-based Rhodium Group and the Mercator Center for China Studies (MERICS) in Berlin, China’s FDI in Europe continued to fall, to a 10-year low: Shrinking M&A activity meant the EU-27 and the United Kingdom saw a 45 percent decline in completed Chinese foreign direct investment (FDI) last year, down to EUR 6.5 billion from EUR 11.7 billion in 2019, taking investment in Europe to a 10-year low.

The UK saw Chinese investment plummet by 77 percent, although more than half of total Chinese investment in Europe went to the “Big Three” economies – Germany, the UK and France. Infrastructure, ICT and electronics were the top three sectors, attracting 51 percent of the total investment from China. Poland rose to become a popular destination, though inflows of EUR 815 million were largely concentrated on one acquisition.

Chinese FDI faces greater scrutiny by EU member states: The Covid-19 crisis prompted the EU to issue guidelines stepping up scrutiny of FDI in Europe’s critical assets. 14 EU member states, including Italy, France, Poland and Hungary, updated their FDI screening mechanisms last year. Member states have also moved to block several acquisitions by Chinese firms.

Headwinds against Chinese investment in Europe will grow in 2021: Chinese FDI activity into Europe continued to fall in the first quarter of 2021 and has remained weak elsewhere. Europe remains an attractive investment location. However, continued disruption from Covid-19, high barriers to outward capital flows in China and rising regulatory barriers to foreign investment in Europe have all contributed to low levels of Chinese investments. Deteriorating EU-China relations will create additional headwinds for Chinese investors going forward.

Source: Radio France International, June 16, 2021
https://rfi.my/7Uin.T

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that, according to the data released by the United States Department of Labor, the U.S. May CPI (Consumer Price Index) arrived at a surprising five percent. Some analysts expressed the belief that, even if next May the U.S. CPI drops to four percent, the lost purchasing power might never recover. Analysts showed that the U.S. dollar purchasing power is declining at a pace never seen in the past 40 years. In the past three months, the U.S. dollar purchasing power declined by 2.4 percent, which was the largest three-month decline since 1982. Calculated at an annual rate, the three-month decline represents a 9.5 percent annually. In May, the U.S. market saw durable goods prices skyrocket year-over-year by 10.3 percent, especially for a 30 percent price increase for used cars. Housing costs, which represent one third of the CPI, increased by 2.2 percent in the past 12 months. The S&P CoreLogic Case-Shiller Home Price Index increased by 13.2 percent year-over-year, which is the highest increase since December 2005.

Source: Sina, June 12, 2021
https://finance.sina.com.cn/stock/hkstock/hkstocknews/2021-06-12/doc-ikqciyzi9271144.shtml

Major Taiwanese news network China Times recently reported that the authorities from the capital city of Chile, Santiago, announced the closing down of the whole capital region again. In the past two weeks, Chile saw a 17 percent daily increase in confirmed cases of Covid-19. The Santiago capital region, which holds half of the nation’s population, saw a daily increase of 25 percent. The capital region ICU capacity has reached 98 percent. In the meantime, Chile is currently ranked as having the fifth highest vaccination rate in the world. Around 75 percent of the nation’s 15 million population have received at least one shot of the vaccination and 58 percent of the total population have already completed all of the required doses. Chile’s vaccination rate is leading in the Americas. Among the total 23 million doses of vaccine used, 17.2 million were Chinese CoronaVac and 4.6 million were Pfizer-BioNTech. AstraZeneca and the Chinese CanSino were both less than 1 million doses. Medical experts explained that vaccines are not expected to be 100 percent effective and the multiple variants of the Covid-19 virus might also have played a role.

Source: China Times, June 11, 2021
https://www.chinatimes.com/realtimenews/20210611004269-260410?chdtv