Two price increase notices that the grain companies in Hunan and Jiangxi provinces issued in October have been circulating on the Internet. A notice from Jiangxi province stated that COVID 19 and natural disasters this year affected several major grain producing areas across the country Some areas had rain for two consecutive months prior to the harvest season, so overall rice production dropped by about 30 percent compared to previous years. The notice predicted that the minimum increase per ton of rice would be between 200 and 500 yuan (US$30-75). A notice from a grain company in Hunan province stated that the reduced grain production output has resulted in the price being highly competitive. Therefore, the purchase price of the rice will be based on the market rate on the day of the purchase.

Due to flooding in dozens of provinces across the country, along with pest infestation, droughts, and hail this year, China has seen much lower grain production compared to prior years. The grain that the state-owned grain warehouse received was only two-thirds of last year’s level. The official CCTV reported that in previous years farmers would go to the market to sell their grain, but this year the grain merchants have been visiting the farmers homes to buy grain. The price for corn even reached 2600 yuan (US$389) per ton, the highest in the last four years.

According to China’s agricultural commodity futures website, China recently granted a rice import license to 43 rice companies in Myanmar. The reason it switched from its major rice importing countries such as India, Vietnam and Thailand this year was because these countries have either refused to sell, have restricted grain exports, or have increased the price.

Source: Aboluowang, October 31, 2020
https://www.aboluowang.com/2020/1031/1518272.html

A Large number of foreign companies are exiting China lately and many Chinese companies are also relocating their factories to Vietnam to lower the costs. These companies have also attracted Chinese workers to work for them in Vietnam. A video posted on twitter showed that on October 20, nearly a thousand Chinese high-tech workers were gathering at the Sino-Vietnamese border in Guangxi and were ready to cross the border. All of them were supervisory level technicians. Vietnamese companies that the mainland or Taiwanese businessmen set up were the ones that hired them. A Taiwanese businessman living in Vietnam said that the Vietnam government restricts workers from China and it is not easy for people to find jobs in Vietnam. A Chinese businessman told Radio Free Asia that Vietnam is almost a democratic country now. It’s just like Shenzhen in the old days, but its policies, business environment, and the openness are much better than it is in the mainland and it draws many workers to work in Vietnam.

As a result, China is building a two-meter-high wall along the Sino-Vietnamese border to prevent Chinese residents from leaving China. The Sino-Vietnamese border runs about 1300 kilometers (808 miles). People commented that the “US is building a wall to prevent people from entering (illegally), while the CCP is building a wall to prevent people from escaping!”

Source: Radio Free Asia, October 22, 2020
https://www.rfa.org/mandarin/yataibaodao/jingmao/ql1-10222020063212.html

On October 25, at the 2nd Bund Finance Summit in Shanghai, Mu Changchun, director of the Digital Currency Research Institute of the Bank of China, disclosed that counterfeit digital currency has appeared in pilot cities such as Shen Zhen, Suzhou, Xiong’an New Area, and Chengdu. The central bank is facing issues with the prevention of people counterfeiting digital currency. The general public was shocked about the news. People commented that they believe that paper money is much safer than digital currency because digital currency is easier to counterfeit than paper money and the cost of counterfeiting is lower. The Central Bank rushed to introduce digital currency even though the technology is still pre-mature.

The Bank of China has been studying digital currency since 2014. They kept a low profile from the outside world for a number of years. However, as more information has been made public recently, it has triggered high expectations on the launch of digital currency. Even though the officials have repeatedly emphasized the advantages of digital currency over traditional paper money, they have obviously ignored the problems that would come with the digital currency.

Source: Radio Free Asia, October 28, 2020
https://www.rfa.org/mandarin/yataibaodao/jingmao/QL1-10282020042449.html