Services-demand growth down, PRC spurs consumptionÂ
To deal with indications that China’s growing youth unemployment and weakening domestic demand may have formed a vicious cycle, the country plans to promote “new consumption,” which refers to a retail model emphasizing online sales and mobile payment.
The government made that call following a slowdown in the growth of China’s services activity in the second quarter of this year. The Caixin China services purchasing managers’ index (PMI) decreased from 57.1 in May to 53.9 in June, the slowest growth rate since January this year, according to a statement published on Wednesday.
An official argued that by promoting “new consumption,” which refers to the use of online and offline shopping and mobile payments to upgrade sales channels, China can create new space for domestic demand and stabilize the job market.
“In order to form a strong domestic market, it is necessary for our country to firmly implement the strategy of expanding domestic demand,” the official, Zheng Shanjie, chairman of the National Development and Reform Commission, said in an article published by the Qiushi Journal on Tuesday. Specifically, he said, it’s necessary to “comprehensively promote consumption, accelerate the upgrading of consumption quality, expand investment space and support the innovation of new products.”
Zheng’s remarks follow a June 29 decision by China’s State Council to enact a program that is aimed at encouraging people to buy furniture and home appliances. Under the program, the government will support private companies’ efforts to develop new innovative home-use products to upgrade people’s homes and in the process support China’s economic recovery.
‘Slow employment’
Many young people who cannot find satisfactory jobs and prefer to stay home or go traveling rather than take what’s available now describe their status as having “slow employment,” instead of being jobless. About 18.9% of graduates will choose to have “slow employment” this year, up from 15.9% last year, according to a survey conducted by Zhilian Recruitment, a Chinese human resource agency.
On June 15, the National Bureau of Statistics (NBS) said the jobless rate in China’s urban areas remained unchanged at 5.2% in May from April. The unemployment rate of people aged between 16 and 24 was 20.8% while that of those aged between 25 and 59 was 4.1% last month.
NBS spokesperson Fu Linghui said only about six million young people in China were still searching for jobs – but he did not count the 11.6 million graduates about to enter the job markets. June is graduation season in China as it is in many countries around the world.
A commentary published by the state-owned Economic Daily said the society should find out why young people choose to have “slow employment,” which has so far remained a neutral term but can become another form of “lying flat” over the long run.
“Lying flat” is used in China to describe young people’s rejection of societal pressures to overwork and over-achieve.
The opinion piece said local governments should hold more job-matching activities for those who don’t want to have “slow employment” and more apprenticeship programs for those who want to enter the advanced manufacturing sector.
It said local governments should also regulate and improve working conditions in the private sector so that young people will no longer want to wait and see but take jobs.
On June 25, the Ministry of Human Resources and Social Security launched a nationwide program to create new jobs and push promote job matching in the country. It said that between July and December, each fresh graduate will be given the opportunity to receive at least one vocational guidance session, three job recommendations, one skill training program and one internship opportunity. It said the government may subsidize private firms to increase headcount.
Targeted measures
The 53.9 June growth in the PMI was below the market forecast of 56.2 as consumers scaled back spending on services such as travel and restaurants. Any reading over the 50-point mark indicates a month-on-month expansion while a number below that suggests contraction.
“Both supply and demand of services expanded further in June, but at a slower pace,” Wang Zhe, senior economist at Caixin Insight Group, says in the statement published by Caixin and S&P Global. “The gauges for business activity and total new orders both stayed above 50 for the sixth consecutive month, but logged their lowest readings since January and December, respectively, as the services market saw a weaker-than-expected recovery.”
“A slew of recent economic data suggests that China’s recovery has yet to find a stable footing, as prominent issues including a lack of internal growth drivers, weak demand and dimming prospects remain,” Wang says.
The newly-announced Caixin China services PMI matched with the official non-manufacturing PMI, which fell from 54.4 in May to 53.2 in June.
“It has been the non-manufacturing sector, buoyed by consumer spending, that has been keeping China’s economy growing in the first half of this year,” Robert Carnell, regional head of research, Asia-Pacific, ING, says in a research report published June 30. “But what this data confirms is that the initial surge contained a lot of pent-up demand.”
“Domestic tourism, and dining out have been making up for lost time in the early part of the year. But there is only so long that this can go on,” he says. “Other indicators of retail sales suggest that it remains well above historical trends, and suggests some further moderation over the second half of this year.”
He adds that although the government has already offered companies some tax exemptions, lowered financing costs and stimulated domestic demand during the pandemic, it should continue to monitor the business environment and launch more targeted and effective measures.
Read: China retail sales growth slow, job markets shaky
Follow Jeff Pao on Twitter at @jeffpao3
Coco Lee: Disney star and pop singer dies at 48
Singer Coco Lee, who enjoyed pop stardom in Asia in the 1990s and 2000s, has died at the age of 48.
Born in Hong Kong, Lee moved to the US as a child and released albums in Mandarin and English.
She also voiced the lead character in the Mandarin version of Disney’s hit film Mulan, and performed a song from the soundtrack of Crouching Tiger, Hidden Dragon at the 2001 Oscars.
Her sisters said she had been in a coma since a suicide attempt at the weekend.
Lee had been suffering from depression for a few years, older sisters Carol and Nancy wrote in a Facebook post.
She tried to take her own life at home on Sunday and was taken to hospital, where she died on Wednesday, they wrote.
Lee broke into the Mandopop scene in 1994 with two Mandarin albums. Within the next year, she released an English-language album as well as a third Mandarin album.
“Not only did she bring us joy with her songs and dances in the past 29 years, she also worked hard to break new ground for Chinese singers in the international music scene and has been doing her utmost to shine for the Chinese,” Lee’s sisters wrote.
She also sang the Mandarin version of the Mulan theme song, Reflection; while her song Before I Fall in Love is on the soundtrack to the 1999 Hollywood film Runaway Bride, starring Julia Roberts and Richard Gere.
Her performances included a Michael Jackson & Friends benefit concert in South Korea in 1999, and she was a judge on TV talent shows including Chinese Idol.
This past New Year’s Eve, Lee said in an Instagram post that she had “faced major life changing hurdles”, and described 2022 as an “incredibly difficult year”.
‘Trademark bright smile’
Her latest single Tragic was released on 14 February this year.
In March, she said on Facebook that she had undergone pelvic and thigh surgery after triggering an old leg injury during dance practice late last year.
In 2011, Lee married Bruce Rockowitz, former chief executive officer of Hong Kong-based supply chain giant Li & Fung. They have two daughters from his previous marriage.
Rumours that they had split started to surface about three years ago, but Lee never addressed them.
On Wednesday, Lee’s sisters wrote: “In addition to remembering Coco, I hope that you will share her trademark bright smile, honesty and kindness with everyone around you, and continue Coco’s wish that all those around her will feel her love and joy.”
CelcomDigi launches MY5G series to accelerate 5G adoption across businesses
Kicked off with MY5G CEO Roundtable bringing together diverse industry leaders
Collaboration with global partners for insights on effective transformation with 5G
CelcomDigi Bhd, on 3rd July, kicked off the first of a three-part CelcomDigi MY5G CEO Roundtable 2023, as part of the CelcomDigi MY5G Series, aimed at helping businesses realise the…Continue Reading
Hong Kong police arrest four men accused of aiding overseas activists
HONG KONG: Hong Kong national security police on Wednesday (Jul 5) arrested four men it accused of supporting overseas dissidents and of advocating for independence from China, two days after issuing warrants and bounties against several foreign-based activists. The four men “were suspected of receiving funds from operating companies, socialContinue Reading
Four Thai hotels among âworldâs top 10â
PM hails performance as sign of a strong tourism sector
Prime Minister Prayut Chan-o-cha has welcomed the news that four hotels in Thailand have received top-10 scores by La Liste, an authoritative French hotel and restaurant rating guide, a government spokesman says.
The hotels are Capella Bangkok, Mandarin Oriental Bangkok, Amanpuri in Phuket and Six Senses Yao Noi in Phangnga.
La Liste uses a proprietary algorithm to assign scores out of 100 to hotels around the world. Cipriani in Venice topped the table with a score of 99.75. Scores were then ranked in descending order — 99.5, 99, 98.5, and so on. A total of 200 hotels received “top 10” scores of 95.5 or better, with multiple ties.
Capella Bangkok received a fifth-ranked score of 98, Mandarin Oriental Bangkok received a sixth-ranked score of 97.5, Amanpuri in Phuket scored 96 in ninth place, and Six Senses Yao Noi in Phangnga scored 95.5 in 10th place.
A total of 1,000 hotels worldwide were included in the ranking, including another 20 in Thailand, which all received scores of 90 or more, government spokesman Anucha Burapachaisri said on Wednesday.
The prime minister congratulated all 24 hotels for their good work and promised them full support from the government in terms of tourism promotion, Mr Anucha said.
The other 20 hotels are The Sukhothai Bangkok, Four Seasons Hotel Bangkok at Chao Phraya River, Rosewood Phuket, Anantara Siam Bangkok, The Standard Hua Hin, The Peninsula Bangkok, Kimpton Maa-Lai Bangkok, The Okura Prestige Bangkok, Siam Kempinski Hotel Bangkok, The Siam Hotel, Park Hyatt Bangkok, Six Senses Koh Samui, Four Seasons Resort Koh Samui, Anantara Chiang Mai Resort, Shangri-La Bangkok, Four Seasons Resort Chiang Mai, Chakrabongse Villas, The St Regis Bangkok, 137 Pillars Suites & Residences Bangkok and Sri Panwa Phuket.
The latest Hotel Business Operator Sentiment Index, jointly prepared by the Thai Hotels Association and the Bank of Thailand, shows that more than 47% of hotels in Thailand, especially five-star hotels in the South, reported that guests stayed longer on average in May than they did in the same period during the Covid-19 pandemic, said Mr Anucha.
Yellen’s China visit aims at ‘new normal’ with Beijing
IMPROVING COMMUNICATION Yellen is expected to focus on economic issues, but she will remind Chinese counterparts that any move to supply lethal aid to Russia – in violation of sanctions on Russia over its war in Ukraine – could trigger sanctions on Chinese entities, one senior administration official said. “WeContinue Reading
GPO signs vaccine pact with Korean biotech giant
SK bioscience to lend expertise to help improve regional vaccine security
The Government Pharmaceutical Organization (GPO) has bolstered its partnership with SK bioscience of South Korea to enhance regional vaccine security, starting with the production of influenza vaccines scheduled for availability next year.
The cooperation is outlined in a memorandum of understanding signed on Tuesday by GPO representatives, led by director Dr Mingkhwan Suphanpong, and SK bioscience under the leadership of president and CEO Ahn Jae-yong.
Dr Mingkhwan said the GPO will receive technology insights from the Korean pharmaceutical giant pertaining to an influenza vaccine production method involving cell-based inactivated influenza for both three- and four-strain viruses.
She said the Korean company would contribute its expertise and technical know-how to augment Thailand’s manufacturing standards, with the goal of attaining World Health Organization (WHO) pre-qualification.
It was also a great opportunity to enhance the country’s manufacturing practices throughout the region, Dr Mingkhwan said.
“We expect to finish the first phase of vaccine production by next year. It is a bulk-refilling process,” she said. “And within the next two years, we will be able to produce the entire vaccine from start to finish.”
Dr Opas Karnkawinpong, the GPO chairman and permanent secretary of the Ministry of Public Health, said Thailand and Korea maintain a robust partnership in fostering regional health security.
Last year the public health ministries of both countries signed the “Thailand-IVI Ratification Ceremony” in Seoul to increase collaboration through strengthening digital health, health promotion and further cooperation on vaccine research and development.
Meanwhile, Mr Yong praised Thailand’s response to the Covid-19 pandemic, which included robust governmental technology strategies for vaccine security.
He added that these efforts aligned with SK bioscience’s strategy to foster partnerships with promising sectors across various regions, aiming for readiness against future pandemics.
“We have seen strong potential from the GPO and the Thai government for working together on regionalising the vaccine manufacturing method,” he said. “Our close cooperation on vaccine research and manufacturing will finally help strengthen vaccine security in Southeast Asia.”
SK bioscience showed outstanding ability to produce its own Covid-19 vaccines during the pandemic. The company is planning to expand its vaccine production operations to many parts of the world, including in Asean markets.
IAEA head Grossi vouches for safety of water release at wrecked Fukushima plant
Chinese foreign ministry spokesman Wang Wenbin on Wednesday criticised the move towards discharging the water and threatened action if the plan should move ahead. “The relevant Chinese government departments will strengthen the monitoring of the ocean environment and inspection of marine products import, so as to ensure the health andContinue Reading
DBS digital banking disruption in May due to ‘human error’, preliminary probe finds
SINGAPORE: The disruption to DBS’ digital banking services on May 5, 2023 was caused by human error, according to preliminary investigations by Singapore’s largest lender.
The bank found that “human error in coding the programme that was used for system maintenance” affected access to its online and automated teller machine (ATM) services for over six hours, said Senior Minister Tharman Shanmugaratnam on Wednesday (Jul 5).
“The error led to a significant reduction in system capacity, which in turn affected the system’s ability to process internet and mobile banking, electronic payment and ATM transactions,” said Mr Tharman in a written answer to a parliamentary question.
DBS initially said on May 5 that the disruption was caused by a “systems issue”, unrelated to an earlier day-long disruption in March.
According to the bank, the March disruption was caused by “inherent software bugs”, Mr Tharman noted on Wednesday.
CNA has reached out to DBS for more information.
Mr Tharman was responding to Member of Parliament Tan Wu Meng (People’s Action Party-Jurong), who had also asked what was being done to strengthen the reliability and resilience of retail banks’ digital services in Singapore.
Mr Tharman noted the creation of a special committee to investigate the earlier March outage. This committee has been ordered by the Monetary Authority of Singapore (MAS) to extend its review to cover the latest incident, and to use qualified independent third parties.
In May, DBS CEO Piyush Gupta said the committee review would be completed “as a matter of utmost priority” and that DBS would “implement all recommendations expeditiously”.
Jharkhand: Ten sent to jail in India for lynching Muslim man
A court in India has given 10-year jail terms to 10 men for beating a Muslim man to death four years ago.
Tabrez Ansari, 24, died days after being attacked by people who accused him of stealing a motorcycle in the eastern state of Jharkhand.
A video showing Ansari being forced to say chants praising Hindu gods while pleading for his life had gone viral and led to a huge outrage in India.
His family alleged that police denied him treatment despite his injuries.
The state police denied any wrongdoing.
The video footage from the night of 19 June 2019 showed a terrified Ansari tied to an electricity pole and being assaulted by the mob, with blood and tears streaming down his face.
His attackers forced him to repeatedly chant “Jai Shri Ram”, which translates from Hindi to “hail Lord Ram” or “victory to Lord Ram”.
Ansari did as told, but the mob kept assaulting him through the night. He was handed over to police the next day who then arrested him for theft. His family had alleged that they were not allowed to see him.
On 22 June, Ansari complained of nausea, vomiting and chest pain and was transferred to a hospital but he died from injuries sustained during the attack.
Last week, trial court Judge Amit Shekhar convicted the 10 men “guilty of culpable homicide not amounting to murder”.
The police had been criticised initially for not invoking the more stringent murder charge. Later on they did invoke murder charges against all the accused in a supplementary charge sheet.
However, the judge said there was not enough evidence to convict the accused of murder.
Ansari’s lynching by a Hindu mob was not an isolated incident – there have been several similar incidents reported in India in recent years where Muslims have been attacked by so-called “cow vigilantes” over rumours that they had eaten beef, or that they were trying to smuggle cows – an animal many Hindus consider holy – for slaughter. Cow slaughter is illegal in many Indian states.
The attacks on the minority community have been condemned by opposition politicians. Senior Congress party leader Rahul Gandhi had described Ansari’s lynching as a “blot on humanity”.
Critics say anti-Muslim violence has risen since 2014 under the Hindu nationalist government of Prime Minister Narendra Modi. They say the prime minister has not condemned such attacks quickly or strongly enough.
The government denies this and points out that days after Ansari’s killing, Mr Modi said he was “pained” by the assault.
Earlier too he had said that “killing people in the name of cow was “unacceptable“.
BBC News India is now on YouTube .Click here to subscribe and watch our documentaries, explainers and features.
Read more India stories from the BBC:
- ‘Dozens of Indian men have rejected me over dowry’
- Putin says sanctions making Russia stronger
- The tortured Indian labourers who were kept as slaves
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- The India show on colliding worlds of crime and media
- When Miss World in India threatened ‘cultural apocalypse’
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19 July 2018
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