Welcome to the 142nd edition of Trade War.
Following a deadly fire in Urumqi, Xinjiang, anger over Covid lockdowns erupts with protests sweeping Chinese cities and college campuses. Demonstrators in Shanghai call for Xi Jinping and the CCP to step down. And Foxconn workers clash with hazmat-clad police officers over abysmal ‘closed loop’ factory conditions.
Apple and other multinationals face reckoning under Covid Zero. German companies may be ordered to disclose scale of their China operations. World’s largest asset managers and state pension funds passively supporting Uyghur Muslim repression. And India rises as a manufacturing and business alternative.
Over one-fifth of China’s GDP under lockdown with that proportion soon to rise to almost a third, estimates Nomura. Fourth quarter GDP predicted to shrink, quarter over quarter. The IMF calls for a “recalibration” of Beijing’s Covid policy. And China unlikely to open again until after 2023.
Beijing’s tightening grip over Hong Kong plus fears of National Security Law damage market transparency. New research shows alarming levels of wealth inequality in China. And facing pressure from Xi’s Common Prosperity, JD.com follows state banks in cutting salaries of executives.
China news breaking fast . . .
Okay, this is one of those newsletters where I am confronted by the daunting realization that China news is breaking so fast that I must press the send button, or never finish writing. The latest: students are now protesting at Tsinghua University, one of the country’s best schools.
As you can see in the video below, the Tsinghua students are holding up blank sheets of white paper, a protest tactic dating at least back to 2020 in Hong Kong.
Anti-Covid lockdown protests sweep China
Protests against China’s Covid lockdowns have swept across cities and college campuses over the last 24 hours in a striking display of dissent. Below are videos from a number of the most notable.
Beijing, wow…
The demonstration shown here in Beijing is particularly notable given the very low level of tolerance for any open criticism against government policies in China’s capital.
‘Down with the party! Down with Xi Jinping!’
In what is sure to cause serious consternation amongst top leaders, protesters in Shanghai on Saturday night chant, “Down with the party! Down with Xi Jinping! Free Xinjiang!”
‘One day you will pay’
In the capital of Jiangsu province, the president of Nanjing’s Communication University of China warns protesting students, saying: “One day you will pay for everything you have done today!"
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