Nucleic acid testing for residents in Huangpu District, Shanghai, 4 April 2022 [Jin Liwang/Xinhua]
Dear Reader
This week, Dongsheng member Marco Fernandes published an article titled, US watches as China, Latin America deepen ties, which maps out the recent moves by the US aimed at containing the deepening of economic and political relations between China and Latin American and Caribbean countries – especially those with progressive governments. Read here in English.
—Dongsheng editorial collective
National Politics
Government stresses adherence to dynamic zero-Covid approach as Shanghai registers over 20,000 asymptomatic daily cases
38,000 nationwide medical workers and 2,000 PLA officers were dispatched to Shanghai, helping carry out world’s largest daily mass testing of 25.66 million residents, improve delivery of essential goods, and maintain core functions and industries, including the Shanghai Port
People’s Life and Culture
Shanghai residents turn to crowdsourcing and social media groups to access information and essential food and medical supplies
Residents navigate lockdown as restaurants close and 20+ hospitals stop outpatient services; city issues “green passes” for businesses that are allowed to deliver essential goods and communities organize group purchases from designated e-commerce platforms, with 11,000 delivery workers on daily duty
Health
Chinese regulatory agency authorizes two domestic laboratories to begin clinical trials of Covid-19 vaccines with mRNA technology
CanSino Biologics and CSPC Pharmaceutical Group say they can help neutralize the Omicron Covid variant; mRNA technology has significant advantages in the R&D process, including rapid, uniform, and scalable production
China’s share active pharmaceutical ingredients (APIs) market grows rapidly, thanks to low-cost and off-patents advantage, such as antibiotics or vitamins
Until the mid-1990s, the West and Japan produced 90% of the world’s APIs but, by 2017, China accounted for 40% of global production; having cheaper raw materials (up to ⅔ of the total drug cost), country also has huge production scale advantage
Geopolitics
China hosts meeting of foreign ministers of Afghanistan and neighboring countries – such as Russia – to address Afghan crisis, including US, Qatar, and Indonesia diplomats
Countries call for US to return US$7 billion in confiscated Afghan assets, while only 13% of the UN’s US$5 billion funding appeal has been granted; post-meeting statement recognizes Kabul’s efforts and establishes working groups to prioritize humanitarian assistance and long-term Afghan development
President Xi supports EU leadership in Ukraine-Russia conflict resolution at China-EU summit, but European Commission President von der Leyen highlights opposing views with China
Beijing says it is critical to provide security guarantees to Moscow and Kiev, while Brussels is pressing China not to help Russia circumvent sanctions; EU foreign policy has been captured by Washington’s interests, according to Chinese analysts
Economy
Yuan’s share of global reserves reaches a five-year high, totaling US$336.1 billion (2.79% of total) in Q4 2021
By the end of 2021, the yuan ranked 5th – after the US dollar, euro, yen, and pound – and could be among the top three reserve currencies in the next 10 to 20 years; Chinese foreign trade and sanctions against Russia should accelerate yuan growth in 2022
Due to sanctions, Russia turns to Chinese microchip manufacturers to meet demand for bank cards linked to the Mir payments system
Major Russian banks, many of them recently excluded from the SWIFT global payments system, report increased demand for domestic bank cards; some start issuing co-branded cards with China’s UnionPay – Visa and MasterCard alternative – for purchases by Russians abroad
Agriculture and Environment
One month into corn and soybean planting season, Covid outbreaks disrupt fertilizer supplies and stop farming in Jilin, the main corn-producing province
Fertilizer shortages are caused by strong global demand, high energy costs, and sanctions on Russia and Belarus; three northeastern provinces and Inner Mongolia produce more than 40% of China’s corn and 50% of its soybeans
Development of national water network is part of new phase of water management in China, with expanded investment in the 14th Five-Year Plan (2021-25)
New dams, diversions, and pumping stations will increase water supply (to 122 billion m³/year) and irrigation efficiency, transfer water between regions, and prevent flooding; in 2021, China suffered the second highest flooding-related economic loss (US$25 billion vs. Europe’s US$41.8 billion)
Corn production in Jilin Province [South China Morning Post]
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