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China’s Workers in Strike Back Against the State’s Strict COVID Regulations



Discontent with severe Residents clashed with police in China’s megacity this week over COVID-19 laws, China is the only major economy fighting breakouts. “Dynamic zero COVID” has reduced virus-related mortality, but it has stifled the economy, reducing exports and increasing youth unemployment.
Monday night, social media showed outraged Guangzhou residents rushing barriers and kicking down fences after a curfew was prolonged owing to surging case numbers.
Health professionals entrusted with segregating communities were overpowered by a big mob of largely young males during a riot in the 1.8 million-person Haizhu district.

Later, police dispersed the crowd, witnesses said. Newsweek couldn’t independently authenticate further videos showing police vehicles patrolling an empty avenue and pushing citizens to follow public health standards. China is facing its largest COVID waves since the pandemic began three years ago. In Guangzhou, the capital of Guangdong, conditions are very awful.

The second-most populous city in China is home to many poor migrant workers whose work is irregular and whose living situations aren’t suitable to quarantine.
This week’s rare skirmishes with local authorities were sparked by a lack of cash from shuttered factories and lost transport routes out of the region, as well as a food crisis during lockdown. Near-daily testing was expected in “high-risk” neighborhoods.

Political expert and former Chinese diplomat Han Yang said in a recent interview, that demonstrators face prosecution. “Chinese policymakers prioritize order and stability and will not tolerate protests that could spread.” The flare-up recalled scenes from Shanghai, China’s richest metropolis, in spring, when 25 million people were locked down for two months to contain the country’s worst surge.

Residents protested by banging pots and pans and singing from high-rise windows. Others rejected centralized quarantine in poor facilities as daily mass PCR testing proceeded across the city, but most complied. Regardless of affluence, all suffered from lack of resources and isolation. Over 90% of new cases in Guangzhou, like in Shanghai, are asymptomatic. Despite weeks of on-and-off lockdowns, no serious or critical patients or deaths have been reported.

President Xi Jinping has moved to revise his flagship public health strategy amid growing public discontent with pandemic control expenses, especially among the middle class.

Last Monday, he announced a 20-point optimization plan to China’s senior leaders. Reduced quarantine period and less targeted contact tracking were implemented. The central government prohibited unnecessary mass testing and catch-all neighborhood regulations.


COVID remained a threat; Xi’s strategy had worked in the past and would work again, an indication he had put too much political capital in the position to reverse it quickly and publicly.
Huang Kunming, CCP secretary in Guangdong, visited Guangzhou on Tuesday and urged health officials to “win the battle” against the virus by speeding up the building of field hospitals and centralized quarantine facilities.

“It’s an illustration of Beijing’s zero-COVID approach and the 20-point relaxation plan,” Han remarked. “Local governments will adopt tough measures as long as zero COVID is a guiding principle. No alternative exists.” Shanghai’s shutdown devastated exports and frightened investors. Guangzhou’s shutdown could have global repercussions.
Recent history suggests Huang was right to follow party line for political convenience. Li Qiang, who handled Shanghai’s citywide lockdown as party secretary, lost his promotion chance after the performance.

Li, a Xi loyalist, was appointed as China’s No. 2 leader and presumably its new premier next March when Xi won a third term as CCP general secretary last month.

Yanzhong Huang, a CFR senior fellow for global health, said Li’s promotion shows “being more Catholic than the pope pays off.” Mid-April, Shanghai’s spike in cases pushed China’s daily COVID infections to under 30,000. By Wednesday, most of China’s approximately 40,000 new illnesses were in Guangzhou, with no peak in sight.

The continued surge in cases, combined with the official zero-tolerance attitude, might have major ramifications for the national policy, said Huang, especially when local governments turn to more indiscriminate tactics to offer flexibility.

“Localities with little capacity and little epidemic experience are more prone to employ severe measures,” he told Newsweek.

Urumqi, capital of northwestern Xinjiang, was under lockdown for the 100th day Wednesday as cases surged to double digits. Reports abound of starving locals.

Guangzhou’s government lacks Shanghai’s resources and its constituents’ affluence, so the Chinese leadership faces a different test there. It could make southern unrest tougher to calm. An outbreak at the world’s largest iPhone manufacturing plant in Zhengzhou, Henan province, threatens livelihoods and Apple’s holiday stock. Local village cadres took over when hundreds of personnel left for fear of illness.


Thursday, Zhengzhou officials faced more public outrage over the death of a 4-month-old infant who died of disease in a quarantine hotel after her father waited 11 hours for help. In early November, a 3-year-old boy died after his father spent an hour breaking out of their locked-down residential compound to reach a hospital.
Systemic constraints hinder China’s COVID exit. Despite attempts to amend the regulation, officials are rarely penalised and, as Li’s case indicates, incentivized to wipe out epidemics.

Beijing’s hand may be forced by bottom-up pressure, especially if the strategy’s financial weight grows. China’s testing infrastructure might cost hundreds of billions annually. Chinese citizens and international nationalities must have green health codes in WeChat to visit public locations. Cash-strapped municipal governments are unable to finance regular PCR tests.

Huang: “When people have to pay for tests, access to these facilities will be harder.” “Many will be upset.” Beijing continues to hint at the risks of a nationwide easing of COVID laws, which might take up to 1.5 million lives due to China’s vast aging population and under-resourced health care system.

Huang says the central government has made no preparations for a genuine transformation. Beijing’s own figures suggest otherwise, but the immunization rate among China’s elderly has stayed mostly steady in the past three months.

Huang stated that if the central government is serious about shifting away from zero COVID, it should start preparing public opinion, beginning a vaccination program, investing in surge capacity, and adopting triage procedures so only severe cases are treated in hospitals. Huang: “We don’t know how effective Chinese vaccines are or if they can survive a quick spike in cases” “The future of China’s zero-COVID strategy depends on whether the central government will keep to this approach and how confident they are in their vaccinations.”

In the CCP’s flagship People’s Daily newspaper on Tuesday, “Zhong Yin” stated China’s routine disease prevention and control efforts were scientific and accurate and balanced public health and the national economy.

There was no room for complacency with “grave uncertainty” about the pandemic’s direction, it warned, while recognizing public “inconveniences.”

The editorial warned against heavy-handed, one-size-fits-all tactics to fighting the virus. As is typically the case, local leaders must implement the sentiment.


China hasn’t approved mRNA vaccinations. Even if it did, achieving the target vaccination rate could take 6-12 months.

“The coming weeks will be crucial for zero COVID’s future,” he said. “Persistence is success,” the piece said.

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Economic News

More Than 400 Industry Organizations Ask Congress To Stop Rail Strike





The leaders of Congress are being urged by more than four hundred different business organizations to be ready to avoid a freight train strike that could begin wreaking havoc on the economy as early as the following week.

In a statement sent on Monday, industry groups sponsored by the Chamber of Commerce wrote to House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer, House Minority Leader Kevin McCarthy, and Senate Minority Leader Mitch McConnell that “No one wins when the railroads stop operating.” In accordance with the Railway Labor Act of 1926, the Congress has the authority to impose a contract on both parties or to extend a “cooling-off period” for discussion in order to keep the railroads operating and prevent interruptions to interstate commerce. The laws governing employees’ time off are at the center of the disagreement between the railroad companies and their workforce.

The 449 different business associations, which range from the Aluminum Association and the Beer Institute to the US Apple Association and the Window & Door Manufacturers Association, have all stated that this is a matter of “grave urgency” due to the fact that even a temporary stoppage of work would result in a significant amount of issues. They stated that a consensual agreement between the freight train unions and the freight railroads would be the greatest possible outcome, but they emphasized that Congress needed to prepare for the worst possible outcome. “Absent a voluntary agreement, we call on you to take immediate steps to prevent a national rail strike and the certain economic destruction that would follow,” the groups wrote, pointing out that Congress has intervened 18 times in labor negotiations since 1926 when interstate commerce was threatened. “Absent a voluntary agreement, we call on you to take immediate steps to prevent a national rail strike and the certain economic destruction that would follow,” the groups wrote.

It is possible that a rail strike will take place as early as December 9, which will result in a lack of goods, an increase in costs, and a stop in the production of goods in factories. According to the estimates provided by the business organizations, this might also result in a disruption of commuter rail services, which could affect up to seven million passengers per day, as well as the transportation of 6,300 carloads of food and farm products every day.
However, the trade groups warn in the letter that the effects of a nationwide well strike will be felt by many firms as early as December 5 in the form of service outages and other impacts. They mentioned that earlier this year, there was a prospective rail strike that caused “severe disruptions” for essential goods and products, such as fertilizer, chlorine, and other things, but the strike was averted with an 11th-hour preliminary arrangement.

According to the letter, “Congress must be prepared to intervene before the end of the current’status quo’ term on December 9 to ensure continuing rail service” in the event that an agreement cannot be reached. “The unpredictability of rail service in the midst of this year’s drawn-out contract negotiation has produced an immense amount of concern.”

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Economic News

Outside China, Protests Are Grabbing Headlines





In China, the censors are working nonstop. Thousands of protestors have gathered in the streets of more than a dozen Chinese cities in recent days, demanding an end to strict Covid lockdown restrictions and political freedoms in a rare display of rage against the Chinese Communist Party.

For major news outlets around the world, it is one of the top stories, if not the top story. However, the unprecedented challenge to Chairman Xi Jinping has received almost little publicity for the hundreds of millions of Chinese who rely on state-run media for their news.

This is due to the fact that Chinese media have mostly ignored the rebellion, which is thought to be one of the greatest to occur in recent memory, as Xi deploys a variety of iron-fist techniques to stifle coverage and suppress the totalitarian nation’s growing acts of dissent. For instance, the state-run Xinhua News Agency’s webpage lacked any coverage of the demonstrations on Monday. In reality, a scan of its website revealed that the propaganda organization had not used the word “protest” in any digital pieces since the protests started.

Xinhua is a common news source. Attempts are being made by additional state-run media sources to completely ignore the widespread protests, which have started in at least 16 locations. The websites of the People’s Daily and China Daily, two more well-known state-controlled media outlets, did not mention the protests on Monday.

According to Jonathan Yerushalmy of The Guardian, CCTV “spending most of the morning covering the announcement of the planned launch of the Shenzhou-15 spacecraft to China’s space station on Tuesday.”

According to Philip Hsu, director of the Center for China Studies at National Taiwan University and a visiting fellow at Brookings, “the lack of media coverage, due to Xi’s control, restricts the spread of information and helps, to some extent, prevent the protests from proliferating in an unbridled fashion.”

Hsu would not rule out the idea that some coverage choices were made out of self-censorship. But this situation, according to Hsu, “reflects an even more fundamental control by the Party than if there are the directives, because the media has been extensively conditioned on what they can and cannot do without being instructed individually.”


Young protesters across China held up sheets of white paper as a metaphor for the numerous critical posts, news stories, and vocal social media accounts that were removed from the internet in a symbolic protest against the ever-tightening censorship.

The deliberate attempt by the state-run media to put an end to the demonstrations and spread official messages exposed the depths to which Xi’s mouthpieces will go to quell dissension. Given that the absence of coverage has not been able to quell the escalating protests or conceal the reality from the world that is eluding the authoritarian hold via social media, it also raises concerns about the efficacy of his propaganda machine.

It’s possible that this is the reason why state-run media is currently adopting a slightly different strategy. In some cases, these pieces appear to be intended to quiet the uproar by implying that the government will strive to “refine” its harsh Covid measures. For instance, The People’s Daily’s site included a headline that said, “Precision” is required “as cities roll out optimal COVID response.” In other words, some wiggle room is needed for the rigid Covid limits.

It remains to be seen whether that strategy will be successful. But Hsu asserted that one “important” shift brought about by the protests will be “impossible to roll back,” “no matter what happens.”

Individual citizens now understand that there is a good probability that others may join their resistance, according to Hsu.

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Economic News

Buy Now Pay Later Revenue Up 78% Despite Unparalleled Inflation





Inflation reached a 40-year high this year, yet it didn’t stop the famous Black Friday. Last Friday’s discount frenzy broke the previous record by selling $9.12 billion in merchandise, outperforming the previous year by 2.3%. However, compared to other years, that sales record’s structure is somewhat different. The growth of credit and buy-now-pay-later (BNPL) services seems to have offset the inflationary pressure.

Beyond All Expectations, Black Friday Week

The data from Adobe Analytics collected on Saturday shows that customers used eCommerce more than ever before. One example is the $3.36 billion in sales that Shopify Merchants achieved on Black Friday, shattering previous records. Buy-now-pay-later (BNPL) programs like Zip, Afterpay, Affirm, and PayPal’s Pay-in-4 have been enthusiastically adopted by consumers.

In the week of Nov. 19–25, point-of-sale loans climbed by 78%, and BNPL income increased by 81% from the previous week. Contrary to October, online sales increased by almost 200% in the following categories: toys accounted for the highest increase at 285%, followed by audio equipment (230%), electronics (221%), smart homes (271%), and fitness equipment (218%).

Gaming consoles, drones, Dyson vacuums, MacBooks, and gaming-related devices are among the most popular products. Overall, the yearly study from the National Retail Federation was accurate in predicting stronger consumer spending than it did before 2020. In addition to record BNPL orders, the Black Friday week saw a boom in mobile shopping, which, according to Salesforce, accounted for a record 48% of total online sales, up from 44% last year. With $5.29 billion and $9.12 billion respectively, Thanksgiving and Black Friday both exceeded forecasts and set records. Online buyers don’t often spend more than $3 billion every day. On Cyber Monday, which Adobe projects will generate $11.2 billion, a YoY rise of 5.1%, this trend is anticipated to continue.

Original Black Friday Created in an Inflationary Environment

After the Thanksgiving holiday and only in the US, Black Friday ushers in the start of the holiday shopping season. Beginning in the early 1950s, the term “Black Friday” referred to employees who called in sick after Thanksgiving, generally to extend the holiday into a 4-day weekend.


Since then, as consumer power increased, employees have expanded it to include escapades at the mall and clogged roads, particularly in the late 1970s and early 1980s. Black Friday was first acknowledged by The New York Times in 1975, a year after inflation reached 11.05%. Inflation peaked in 1980 at a record 13.55%.

One year later, on November 28, 1981, The Philadelphia Inquirer published the first description of Black Friday as the day when retailers collect their annual profits and turn their accounting books from red (negative) to black (positive). Where Can Customers Find Relief from Prices?

The NRF predicted that consumers will spend 6%–8% more than they did last year in the present macro environment, which is in line with the 7.7% inflation rate. The only significant product category that provided consumer comfort was clothes, with a 0.7% decrease in costs from September to October, except from used vehicle prices, which fell by 2.4%.

Nevertheless, there was a need for inventory clearance due to supply chain disruptions over the previous two years and an excessive number of orders that were carried over. This gave retail establishments plenty of room to get rid of inventory that was no longer in high demand. Clothing, TVs, appliances, and computers were included in that broad category by Adobe Analytics.

NRF estimates that households making under $75k should cut their holiday expenditures by $606 on average. Despite being fewer in number, households making over $150k should make up the difference in spending by increasing their average annual income by $1,304.
Is High Inflation Being Exit by the Economy?

The Consumer Price Index (CPI) for October decreased from 8.2% to 7.7%, yet the percentage still indicates an increase in prices. Having said that, it seems like inflation is gradually slowing down. Crude Oil (WTI) is currently down 3% year over year, which is the biggest drop since the beginning of 2021. Additionally, the Freightos Baltic Index (FBX), which measures global container freight prices, has fallen by roughly -300% from its top of $11,109 in late September to its lowest level since December 2020. Similarly, prices on the home market are dropping at their quickest rate since the Great Recession of 2008. The highest increase in more than 20 years, however, was a 15% YoY increase in credit card debt balances.

The third quarter of 2022 saw a continuation of the rise in credit card, mortgage, and auto loan balances due to both strong consumer demand and increased pricing. Donghoon Lee, a research advisor for economics at the New York Fed, says

It’s interesting to note that as of September, 2.7% of the total amount of outstanding debt still had a very low debt default rate for Q3 2022. This might alter, though, if the jobless rate keeps rising. It is currently 3.7% compared to 3.5% last month.


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