Emanuele Scimia

Shanghai, Shenzhen and Hong Kong make few gains and losses as fears grow of virus spread. Tokyo's thud after yesterday's collapse in Europe and the US. Beijing has room to introduce new liquidity, unlike many other countries. Global recovery expected after initial volatility.

Vietnam is the most assertive in responding to Chinese actions. China is no longer alone in using weaponized fishing boats as others countries follow. Beijing, Hanoi and Kuala Lumpur are at standoff. A code of conduct between the parties is increasingly at risk.

Beijig estimated to have lost over 180 billion euros in the first two months of the year due to pulmonary epidemic. Economic growth in sharp decline in the first quarter. Bringing workers back to factories is a priority for Chinese companies. Only 30% of the 300 million migrant workers are available.

Beijing is cutting tariffs on many US imports to meet its commitment to buy US200 billion in US products and services. Imports are also needed to face the coronavirus outbreak. Doubts remain about its ability to buy US$12.5 billion in agricultural products from the United States.

US and Taliban agree to a seven-day truce as a first step towards peace; however, conflict between Afghan leaders threatens the deal. The death toll from the Afghan war has topped 150,000 since it started in 2001.

The ban is based on scientific considerations, says the island government. Taiwan opposed by Rome's decision to suspend flights between the two countries to curb the spread of the coronavirus. The presence of African swine fever in Sardinia at the basis of the import ban.

Badly affected by the epidemic, Beijing wants to restore normal economic relations with its southern neighbours. China is the bloc's top trading partner and a major investor. Almost all Southeast Asian countries have reduced exchanges with mainland China. Bad relations between China and Vietnam could impact on anti-coronavirus cooperation.

Shanghai and Shenzhen continue to recover after a new interest rate cut decided by the central bank. However, factories are struggling to resume activities due to the lack of manpower and movement restrictions. Liquidity injections are likely to do little to help small and medium-sized businesses.

On WeChat, the renowned law scholar slams the dearth of information about the crisis. In his view, “without press freedom, people will live in distress and the government in mendacity.” A supporter of Liu Xiaobo and Charter 08, He calls for the implementation of the rule of law in China.

80% of Chinese state-owned enterprises return to work, but national GDP is estimated to drop to 5%. Kickbacks for all major Asian economies, especially Japan and India. Taiwan and South Korea are expected to limit the damage. Indonesia, Singapore and Vietnam are also slowing down.

The arrest occurred during a health check for the coronavirus. Human rights defender, Xu had been wanted for some time. In early February he published an indictment of Xi Jinping for his management of the epidemic crisis, for the trade war with the United States and for the protests in Hong Kong.

Chinese companies make 15 million protective masks per day, but domestic demand is between 50 and 60 million. Local and foreign companies are encouraged to provide their own protective gear. In Hong Kong, a mask costs US$6.40.