Hong Kong passes bill protecting the Chinese national anthem amidst national sovereignty and security measures [Photo: AFP]
Geopolitics
Former British chief of Hong Kong prosecutors says absence of a National Security Law gave rise to protests marked by unacceptable violence
Beijing waited 23 years for Hong Kong to fulfill its obligation to enact a law against acts of secession, subversion, terrorism and foreign interference
Analysts say that if Washington acts on a “nuclear option” with trade and financial sanctions, the biggest losers could be Hong Kong and American companies themselves.
Mainland China would suffer small impact in the long run, but Hong Kong could lose space to Singapore in the coming years
Hong Kong Finance Secretary says People’s Bank of China could guarantee dollar parity if Trump imposes financial sanctions
Since 1983, fixed exchange and convertibility between the Hong Kong currency and the US dollar have made it the third largest global financial center
Western statements about the “death of Hong Kong” were also made in 1997, when the territory was reincorporated into China, but history has shown otherwise.
Last British colonial governor resorts to the image of “death” and echoes US and UK hypocrisy about National Security Law
Merkel bets on dialogue with China, Germany’s largest trading partner US $222.7 billion, but faces disagreement from its Foreign Minister
Heiko Maas (Social Democratic) criticizes decision on Hong Kong and increases internal tension within a few months of summit between EU and China, in Leipzig
Economy
China announces ambitious plan to transform Hainan into a new free trade area and increase attraction for businesses and tourists
Paradise island in the south will zero production tax and halve (to 15%) the income tax for companies and individuals, similar to Hong Kong
Chinese companies in Africa already produce 12% of the continent’s US $500 billion in manufacturing, from electronics and clothing to masks and fiberglass
New Silk Road advances on the continent, with massive investments in industries, infrastructure and job creation, but scarce electricity is still a challenge
Purchasing Managers’ Index (PMI) of industrial (50.7) and services (55) sectors increased in May and point to expansion, but losses from the crisis have not yet been compensated for
Service high was the highest of the decade, but global pandemic and unemployment still threaten economy
China Daily, 04.06.2020 (Services)
Global Times, 01.06.2020 (Industry)021
National Politics
At the end of the “Two Sessions”, the government announces a package of measures to try to reverse the impact of the pandemic on the economy in 2020
Fiscal package, which will inject an additional US $810 billions into the economy, and a tax reduction of US $350 billions are two of the main stimuli
China’s First Civil Code is approved in the “Two Sessions” and represents a milestone in the socialist legal system
The code contains six parts (property, contracts, personality rights, marriage, family and offenses), received over 1 million suggestions online and was dubbed the “encyclopedia of social life”
Agriculture and Environment
250 million peasants who own up to 3 hectares of land lost an average of 20% of their income due to the pandemic
About 40% of their income comes from temporary work and 40% from remittances from relatives working in the city, only 20% from food sales
People’s Life and Culture
Kuijiu (Sichuan Province) has an average income per capita of US $450 a year (US $1.25 a day), corresponding to 25% of the Chinese rural average, and struggles to overcome extreme poverty
Party sends members to organize efforts of the government program, which has already brought running water, electricity and a telephone signal to the ethnic Yi village
CGTN, 02.06.2020 (with Documentary)
Traditional Chinese medicine is strengthened thanks to success as supportive treatment for COVID-19 and revives debate in the country
Only 15% of hospitals and 9% of professionals currently adopt such practices, but the government proposes investments in research and greater integration with Western medicine
Members of the Communist Party of China coordinate program to alleviate poverty in Kuijiu, Sichuan [Photo: CGTN]