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The fallout from the alleged Chinese “spy” balloon that flew over the United States has cemented a near bipartisan consensus in Washington over the need to “stand up” to Beijing, as competition between the two countries intensifies.
While US officials stress they remain open to dialogue with China despite the renewed tensions, many politicians in Washington are invoking the incident to call for tougher policies.
US President Joe Biden himself warned China against threatening US sovereignty during his annual State of the Union speech, seen by an estimated 23.4 million TV viewers on Tuesday evening.
“The Biden administration has shown that it is very concerned with attacks particularly from the right, from Republican critics, that they are being too soft on China,” said Tobita Chow, director of Justice Is Global, a project that advocates for a more sustainable international economy.
“And because of that pressure coming in from the right, I think we often see them leaning further in the direction of confrontational politics.”
US Secretary of State Antony Blinken postponed a previously scheduled trip to Beijing over the balloon incident, which the Biden administration has called an “unacceptable” violation of American sovereignty.
The US military shot down the balloon on Saturday as it flew over the Atlantic Ocean, after days of debate and congressional calls to bring it down.
In his State of the Union speech, Biden said the US is not seeking confrontation in its competition with China but warned that Washington will stand up for its interests against Beijing.
“As we made clear last week, if China threatens our sovereignty, we will act to protect our country — and we did,” he said.
Little is publicly known about the Chinese balloon or what it was doing in US airspace. Nonetheless, its presence caused a significant political stir and produced countless news headlines and wall-to-wall coverage.
China initially expressed regret for the incident, describing the balloon as a civilian airship used for meteorological research that “deviated far from its planned course”. Beijing later condemned the US hit to bring down the aircraft.
But the Pentagon insisted it was a “high-altitude surveillance balloon”, although US defence officials said the balloon did not pose a “military or physical threat”.
Still, some Republican lawmakers kept describing the aircraft as a risk to national security.
Republican Senator Tom Cotton denounced the Biden administration for allowing the balloon to traverse the continental US for days before shooting it down.
Cotton told Fox News earlier this week that he felt the delay in Biden’s response was “dangerous for the American people”. He also accused the administration of pushing to salvage Blinken’s visit to Beijing, which he described as “already ill-advised”.
US officials had previously said that, if the balloon were brought down over land, falling debris could “potentially cause civilian injuries or deaths or significant property damage”.
Christopher Heurlin, an associate professor of government and Asian studies at Bowdoin College in the US state of Maine, said while the balloon may not have been a direct threat to Americans, it created a “shock” in the country.
“We like to think in the United States that we live in North America and we’re oceans away from any kind of competitors — and in that sense, not very vulnerable,” Heurlin told Al Jazeera.
“Whereas having the spy balloon flying overhead, I think, does create some kind of visceral sense of vulnerability in the collective psyche.”
As for Blinken’s trip, Heurlin said “political considerations” played a role in the decision to postpone it.
“I’m not sure that politically Biden would have been able to get away with sending Secretary of State Blinken to China under these circumstances,” he told Al Jazeera.
Chow, the director of Justice Is Global, agreed that the “panic” over the balloon likely led to postponing the visit.
“I think the Biden administration correctly judged that the balloon was not really that big of a deal,” Chow told Al Jazeera. “But they felt overwhelmed by this wave of media coverage and this very extreme freakout from the right.”
The balloon incident came against the backdrop of growing animosity between Washington and Beijing.
Last year, the White House released a national security strategy that described China as the “most consequential geopolitical challenge” for the US. The Pentagon also prioritised competition with Beijing in its defence strategy.
Both assessments primarily focused on China, not Russia, despite the latter’s invasion of Ukraine, which has disrupted global supply chains for vital goods like food and energy and ushered in the most intense violence in Europe since World War II.
Ties between Beijing and Washington have soured over numerous points of tension in recent years, including trade issues, the status of Taiwan, China’s claims in the South China Sea and an ongoing US push against growing Chinese influence in the Indo-Pacific.
The US has also been warning China against coming to Russia’s aid in Ukraine.
So how did we get here?
As Washington’s so-called “war on terror” — initiated during the aftermath of the 9/11 attacks — began to wind down, the US turned its focus to competing with China, whose economic power and push for global influence has been growing.
Chow said the root of the tensions is “neoliberal free-trade globalisation”. That economic framework, he explained, has been experiencing deeper systemic problems since the 2008 financial crisis and has led to “zero-sum competition, which then became the breeding ground for dangerous nationalist politics”.
Heurlin, the professor, linked the current state of affairs between the two countries to economics as well. He said that, with the loss of manufacturing jobs to outsourcing, the anger of many in the US has shifted to China.
He added that since the rise of President Xi Jinping in 2012, Beijing has pursued an assertive foreign policy that includes a “vocal defence of Chinese interests”.
“That is something that they’ve been doing really to appeal to Chinese nationalists back home,” Heurlin told Al Jazeera.
“So I think on both sides, this is something that’s been happening for a while. And then especially once Donald Trump comes to the American presidency and starts the trade war with China, that’s when relations really start to bottom out.”
Ultimately, Heurlin said, the US government’s goal is to “maintain its status quo position as the most militarily and economically powerful country in the world”.
Despite the deteriorating relationship, officials in both countries continue to call for cooperation on shared global challenges — namely combatting climate change and the COVID pandemic — as well as warn against confrontation.
But for the foreseeable future, the tensions show no sign of subsiding.
“What we should anticipate is that conflict between the US and China is going to continue and build and escalate over time,” Chow said. “And if things don’t change, then yes, this is going to be a long-term great power conflict that is going to have enormous consequences for people in the US and China and around the world.”
Heurlin echoed that prediction but said he hopes that, with China ending its “zero COVID” policies, more people-to-people interactions between US and Chinese citizens would soften public opinion in both countries.
“It’s getting harder and harder to manage the US-China relationship from the perspective of both Beijing and Washington and I don’t think there really is any kind of magical solution,” he said.
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Beijing’s top envoy to the EU on Wednesday questioned the West’s call to help Ukraine achieve “complete victory,” on the eve of Ukrainian President Volodymyr Zelenskyy’s possible arrival in Brussels.
Fu Cong, the Chinese ambassador to the EU, also criticized the bloc for “erosion” of its commitment on Taiwan, warning “senior officials from the EU institutions” to stop visiting the self-ruled island.
Fu’s provocative comments on Ukraine and Taiwan, two of the most sensitive geopolitical controversies between China and the West, come as Chinese President Xi Jinping is planning a trip to Moscow, according to the Russian government.
Insisting that the Russia-Ukraine “conflict” was merely an “unavoidable” talking point, Fu said Beijing otherwise enjoys a multifaceted “traditional friendship” with Moscow.
“Frankly speaking, we are quite concerned about the possible escalation of this conflict,” Fu said at an event hosted by the European Policy Centre in Brussels. “And we don’t believe that only providing weapons will actually solve the problem.”
“We are quite concerned about people talking about winning a complete victory on the battlefield. We believe that the right place would be at the negotiating table,” Fu added.
His remarks come on the same day as Zelenskyy visits London, his first trip to Western Europe since Russia launched its full-scale invasion almost a year ago. POLITICO reported that Zelenskyy — who according to his aides has never had his calls picked up by Xi, while the Chinese leader has instead met or called Putin on multiple occasions over the past year — was also planning a visit to Brussels on Thursday, before bungled EU communications threw the trip into doubt.
The idea of a “complete victory” for Ukraine has been most vocally supported by Baltic and Eastern European countries. French President Emmanuel Macron has vowed support for “victory” for Ukraine.
But toeing Xi’s line, Fu said the “security concerns of both sides” — Ukraine as well as Russia — should be taken care of.
Fu also dismissed the comparison between Ukraine and Taiwan, both of which face military threats from a nuclear-armed neighbor.
“I must state up front that [the] Ukrainian crisis and the Taiwan issue are two completely different things. Ukraine is an independent state, and Taiwan is part of China,” he said. “So there’s no comparability between the two issues.”
He went on to criticize the EU’s handling of the Taiwan issue.
“Nowadays, what we’re seeing is that there is some erosion of these basic commitments. We see that the parliamentarians and also senior officials from the EU institutions are also visiting Taiwan,” he said.
The European Commission has not publicized any details of its officials’ visit to Taiwan. The European External Action Service, the EU’s diplomatic arm, has not replied to a request for comment.
If the EU signed an investment treaty with Taiwan, Fu said this would “fundamentally change … or shake the foundation” of EU-China relations. “It is that serious.”
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WASHINGTON—Showing the Chinese president grow visibly enraged as he listened to his American counterpart bad-mouth him behind his back, a backstage camera revealed surprise guest Xi Jinping’s reactions to everything President Biden said during Tuesday night’s State of the Union address. “You have a problem with me you can’t say to my face, you fake bitch?” said Xi, appearing on a behind-the-scenes feed featuring the chyron “Called U.S. President ‘Lying Hussie’,” where he could be seen breaking down in tears, smashing a mirror in the green room as aides held him back, and then rushing out to confront Biden as Congress whooped in applause. “Oh, so you can say you don’t like my spy balloon on national TV, but you don’t mention the trillion bucks you owe me, you broke-ass ho? Hey, get back here so I can beat your ass. Or run away, like you run from all our problems!” At press time, Biden had reportedly managed to calm Xi down by offering the weeping leader a box of tissues and agreeing to joint custody of Taiwan.
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A balloon flies in the sky over Billings, Montana, U.S. February 1, 2023, in this picture obtained from social media.
Chase Doak via Reuters
The U.S. military on Saturday shot down a suspected Chinese surveillance balloon, according to media reports.
Department of Defense officials have not yet confirmed the balloon being shot down.
The Federal Aviation Administration issued a ground stop in parts of North Carolina and South Carolina and closed additional airspace on Saturday afternoon. The departures were paused “to support the Department of Defense in a national security effort,” a representative told CNBC.
President Joe Biden broke his silence about the balloon for the first time Saturday, telling a group of reporters, “We’re going to take care of it.”
The high-altitude balloon was initially spotted over Billings, Montana, on Wednesday. Defense officials said the Pentagon considered shooting down the balloon earlier this week but decided against it after briefing Biden. The decision was made in consultation with senior leaders, including Joint Chiefs of Staff Chairman Gen. Mark Milley and Defense Secretary Lloyd Austin.
Biden concluded that the U.S. would not shoot down the balloon because debris from it could cause damage on the ground, a Pentagon official said. Moreover, any information the balloon collects would have “limited additive value” compared with China’s spy satellites.
China’s Foreign Ministry said Friday that the balloon was a civilian weather airship intended for scientific research that was blown off course. It described the incident as a result of a “force majeure” for which it was not responsible.
This claim was summarily dismissed by U.S. officials. A senior Pentagon official told reporters Thursday night that the object was clearly a surveillance balloon that was flying over sensitive sites to collect intelligence.
“We have noted the PRC statement of regret, but the presence of this balloon in our airspace is a clear violation of our sovereignty as well as international law and is unacceptable that this has occurred,” the official said.
The presence of the balloon prompted U.S. Secretary of State Antony Blinken to indefinitely postpone what was to be an already tense trip to China on Friday.
The visit was intended to reinforce communication and cooperation between the two countries as tensions have deepened over China’s increasing military aggression toward Taiwan and closer alliances with Russian President Vladimir Putin.
Instead, Blinken told China’s director of Central Foreign Affairs Office, Wang Yi, in a phone call Friday that the balloon was an “irresponsible act and a clear violation of U.S. sovereignty and international law that undermined the purpose of the trip,” according to a readout of the discussion.
This story is developing. Please check back for updates.
—CNBC’s Christina Wilkie and Amanda Macias contributed to this report
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ABU DHABI — If the world gets lucky, this could be the year fossil fuel producers and climate activists bury their hatchets and join hands to reduce emissions and ensure our planet’s future.
If that sounds hopelessly Utopian, take that up with the leaders of this resource-rich, renewables-generating Middle Eastern monarchy. The United Arab Emirates is determined to inject specificity, urgency, and pragmatism into a process that often has lacked all three: the 28th convening of the United Nations Climate Change Conference, known as COP 28, which the UAE will host from November 30 to December 12.
To kick off 2023, the oil and gas and climate communities gathered this weekend for the Atlantic Council Global Energy Forum, launching the annual Abu Dhabi Sustainability Week. After decades of mutual mistrust, there is a growing recognition they can’t live without each other.
Thank Russian President Vladimir Putin’s criminal war in Ukraine, and his ongoing weaponization of energy, for injecting a new dose of hard-headed reality into climate conversations. It’s seldom been so clear that energy security and cleaner energy are indivisible. The guiding principle is “the energy sustainability trilemma,” defined as the need to balance energy reliability, affordability, and sustainability.
What’s contributing to this new pragmatism is a recognition by much of the climate community that the energy transition to renewables can’t be achieved without fossil fuels, so they must be made cleaner. They have come to accept that natural gas, in particular liquified natural gas (LNG), with half the emissions footprint of coal, provides a powerful bridging fuel.
Once derided by green activists, nuclear power is also winning over new fans—particularly when it comes to the small, modular plants where there are fewer concerns over safety and weapons proliferation.
For their part, almost all major oil and gas producers, who once viewed climate activists with disdain, now embrace the reality of climate science and are investing billions of dollars in renewables and efforts to make their fossil fuels cleaner.
“Every serious hydrocarbon producer knows the future, in a world of declining use of fossil fuels, is to be low cost, low risk and low carbon,” said David Goldwyn, the former State Department special envoy for energy. “The only way to ensure we do this is to have industry at the table.”
Nowhere is this shift among climate activists more evident than in Germany, where Vice Chancellor Robert Habeck, the Green Party leader, is serving as the pragmatist-in-chief.
Habeck, who serves as Federal Minister for Economic Affairs and Climate Action, has been the driving force behind extending the life of the country’s three nuclear plants through April and in launching Germany’s first LNG import terminal in December, with as many as five more to follow.
“I am ultimately responsible for the security of the German energy system,” Habeck told Financial Times’ reporter Guy Chazan in a sweeping profile of the German politician. “So, the buck stops with me. … I became minister to make tough decisions, not to be Germany’s most popular politician.”
Some climate activists were aghast this Thursday when the UAE named Sultan Al Jaber, the CEO of the Abu Dhabi National Oil Company (ADNOC), as president of this year’s COP 28.
“This appointment goes beyond putting the fox in charge of the henhouse,” said Teresa Anderson of ActionAid, a development charity. “Like last year’s summit, we’re increasingly seeing fossil fuel interests taking control of the process and shaping it to meet their own needs.”
What that overlooks is that Al Jaber’s rich background in both renewables and fossil fuels make him an ideal choice at a time when efforts to address climate change have been far too slow, lacking the inclusivity to produce more transformative results.
Al Jaber is CEO of the world’s 14th largest oil producer, but he at the same time was the founding CEO of Masdar, one of the world’s largest renewables investors, where he remains chairman. He also represents a country that despite its resource riches has become a major nuclear power producer, was the first Middle East country to join the Paris Climate Agreement and was the first Middle East country to set out a roadmap to net zero emissions by 2050.
Over the past 15 years, the UAE has invested $40 billion in renewable energy and clean tech globally. In November it signed a partnership with the United States to invest an additional $100 billion in clean energy. Some 70% of the UAE economy is generated outside the oil and gas sector, making it an exception among major producing countries in its diversification.
Sheikh Mohamed bin Zayed al Nahyan, president of the United Arab Emirates, has explained his country’s approach this way: “There will be a time, 50 years from now, when we load the last barrel of oil aboard the ship. The question is… are we going to feel sad? If our investment today is right, I think—dear brothers and sisters—we will celebrate that moment.”
Al Jaber, speaking to the Atlantic Council Global Energy Forum on Saturday, captured his ambition to drive faster and more transformative results at COP 28.
“We are way off track,” said Al Jaber.
“The world is playing catchup when it comes to the key Paris goal of holding global temperatures down to 1.5 degrees,” he said. “And the hard reality is that in order to achieve this goal, global emissions must fall 43% by 2030. To add to that challenge, we must decrease emissions at a time of continued economic uncertainty, heightened geopolitical tensions and increasing pressure on energy.”
He called for “transformational progress… through game-changing partnerships, solutions and outcomes.” He said the world must triple renewable energy generation from eight terawatt hours to 23, and more than double low-carbon hydrogen production to 180 million tons for industrial sectors, which have the hardest carbon footprint to abate.
“We will work with the energy industry on accelerating the decarbonization, reducing methane, and expanding hydrogen,” said Al Jaber. “Let’s keep our focus on holding back emissions, not progress.”
If that sounds Utopian, let’s have more of it.
— Frederick Kempe is the President and Chief Executive Officer of the Atlantic Council.
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DAVOS, Switzerland — The World Economic Forum’s annual conclave in the Swiss Alps is the greatest intersection of wealth and political power on the global calendar, but this year the balance is shifting.
Each January, forum organizers became used to announcing another record-setting list of national leaders, global officials and royalty making their way to the exclusive gathering.
WEF would attract even globalization’s strongest skeptics: from U.S. President Donald Trump to former Brazilian President Jair Bolsonaro and climate campaigner Greta Thunberg.
While there are 52 heads of state of government heading to Davos this year, top-tier leaders are missing. U.S. President Joe Biden and his Chinese and Russian counterparts Xi Jinping and Vladimir Putin are all giving it a miss.
French President Emmanuel Macron, who promised to Make the Planet Great Again, is also skipping the talkfest, along with new British Prime Minister Rishi Sunak and re-elected Brazilian President Luiz Inácio Lula da Silva.
Instead, it’s a European-heavy guest list: German Chancellor Olaf Scholz is the only leader from a G7 country, sharing top billing with European Commission President Ursula von der Leyen, another German.
Even within European royal ranks, the forum this year is attracting the likes of Queen Maxima of the Netherlands — a U.N. financial inclusion envoy — rather than environmental campaigners such as King Charles and Prince William.
Some of the most prominent tech companies are dialing back their participation amid rounds of heavy layoffs.
And the biggest party hosts in town — Russian oligarchs — remain forced out by sanctions levied since Putin’s invasion of Ukraine in February 2022.
Ukrainian President Volodymyr Zelenskyy has unrivaled star wattage among the Davos crowd — but even a video appearance from him this year will be treated as below par, given how many of them he now does.
With the global political elite mostly absent, WEF is this year choosing to focus on rising CEO numbers.
Among 2,700 participants in official WEF sessions, “we’re likely to surpass the old record from 2020 with 600 global CEOs — including 1,500 C-suite level overall,” said WEF’s head of digital and marketing George Schmitt, who added that 80 of the CEOs are first-timers in Davos.
Those who claim Davos is dead are yet to be proven right, but WEF’s critics now spread beyond the activist world who have long disparaged the juxtaposition of private jet opulence with hand-wringing panels about global poverty.
The U.S. delegation includes cabinet members such as climate envoy John Kerry, who will camp out in Davos for most of the week, but others such as Treasury Secretary Janet Yellen are skipping.
It’s not that Yellen has better things to do at home: She’s embarking on an 11-day trip with stops in Senegal, Zambia and South Africa, with no time for Davos.
Nobel Peace Prize winner Beatrice Fihn, who campaigns to eliminate nuclear weapons, said she “genuinely had forgotten that Davos is still happening.”
“The format seems slightly dated now. The private jets and oligarch parties are no longer in step with modern biz [business] life,” said Scott Colvin, a Davos veteran who is now public affairs director at Aviva. “The events around COP [the U.N.’s annual climate summit] now feel a bigger deal, given their focus on a specific global policy objective,” he added.
WEF is a victim of its own success and stuck in a demographic bind.
The forum’s operating model requires it to provide a place for the world’s most powerful and influential people to talk.
In 2020 Bloomberg calculated 119 billionaires joined the party, with a combined net worth of more than $500 billion.
WEF’s efforts to bring the uber-elite together is a stark annual reminder that they don’t look like the rest of us.
The best ratio of female participants in WEF’s 52-year history of in-person gatherings was 24 percent, in 2020.
Despite years of exhortations and incentives for members to bring more female colleagues, the number often hovers in the range of 18 percent to 20 percent. A WEF spokesperson said that 42 percent of speakers this year will be women.
WEF aims for global reach — but often lands in the middle of the Atlantic instead.
This year Europe is supplying the most political leaders, while the U.S. corporate delegation will once again massively outweigh the others. The 700 Americans participating this year outnumber the Chinese delegation roughly 20 to 1.
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MANILA, Philippines (AP) — Philippine President Ferdinand Marcos Jr. flew to China on Tuesday for a three-day state visit, saying he looks forward to his meeting with Chinese leader Xi Jinping as they work to boost bilateral ties.
“As I leave for Beijing, I will be opening a new chapter in our comprehensive, strategic cooperation with China,” he told officials and diplomats, including the Chinese ambassador, prior to boarding his flight from an air base in the capital.
“I look forward to my meeting with President Xi as we work towards shifting the trajectory of our relations to a higher gear that would hopefully bring numerous prospects and abundant opportunities for peace and development to the peoples of both our countries,” he added.
Alluding to the two countries’ territorial dispute in the South China Sea, he said he looks forward to discussing bilateral and regional political and security issues.
“The issues between our two countries are problems that do not belong between two friends such as Philippines and China,” he added. “We will seek to resolve those issues to mutual benefit of our two countries.”
China claims virtually the entire South China Sea and has ignored a 2016 ruling by a tribunal in The Hague that invalidated Beijing’s claims to the waterway. The case was brought by the Philippines, which says China has since developed disputed reefs into artificial islands with airplane runways and other structures so they now resemble forward military bases.
Most recently, a Filipino military commander reported that the Chinese coast guard forcibly seized Chinese rocket debris that Filipino navy personnel had retrieved in the South China Sea last month.
China denied the forcible seizure. Marcos said he would seek further clarification on his visit to Beijing.
Accompanied by a big business delegation, Marcos said they will seek cooperation in various areas including agriculture, energy, infrastructure, trade and investments, and people-to-people exchanges. He said they expect to sign more than 10 key bilateral agreements during the visit.
China accounts for 20% of the Philippines’ foreign trade and is also a major source of foreign direct investment.
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China’s economy grew at least 4.4% in 2022, according to leader Xi Jinping, a figure much stronger than many economists had expected. But the current Covid wave may hobble growth in the months ahead.
China’s annual GDP is expected to have exceeded 120 trillion yuan ($17.4 trillion) last year, Xi said in a televised New Year’s Eve speech on Saturday. That implies growth of more than 4.4%, which is a surprisingly robust figure.
Economists had generally expected growth to slump to a rate between 2.7% and 3.3% for 2022. The government had maintained a much higher annual growth target of around 5.5%.
“China’s economy is resilient and has good potential and vitality. Its long-term fundamentals remain unchanged,” Xi said. “As long as we are confident and seek progress steadily, we will be able to achieve our goals.”
In his remarks, Xi made a rare admission of the “tough challenges” experienced by many during three years of pandemic controls. Many online commentators noted that his tone appeared softer and less self congratulatory than his New Year’s addresses over the past two years.
In 2020, Xi devoted much time to praising China’s economic achievements, highlighting that it was the first major global economy to achieve positive growth. Last year, he emphasized the country had developed rapidly and that he had won praise from his counterparts for China’s fight against Covid.
However, in 2022, China’s economy was hit by widespread Covid lockdowns and a historic property downturn. Its growth is likely to be at or below global growth for the first time in 40 years, according to Kristalina Georgieva, managing director of the International Monetary Fund.
Chinese policymakers have vowed to seek a turnaround in 2023. They’re betting that the end of zero-Covid and a series of property support measures will revive domestic consumption and bolster growth.
But an explosion of Covid infections, triggered by the abrupt easing of pandemic restrictions in early December, is clouding the outlook. The country is battling its biggest-ever Covid outbreak.
Last week, Beijing announced it will end quarantine requirements for international arrivals from January 8, marking a major step toward reopening its borders.
The sudden end to the restrictions caught many in the country off guard and put enormous strain on the healthcare system.
The rapid spread of infections has kept many people indoors and emptied shops and restaurants. Factories have been forced to shut down or cut production because workers were getting sick.
Key data released Saturday showed factory activity in the country contracted in December by the fastest pace in nearly three years. The official manufacturing purchasing managers’ index (PMI) slumped to 47 last month from 48 in November, according to the National Bureau of Statistics.
It was the biggest drop since February 2020 and also marked the third straight month of contraction for the index. A reading below 50 indicates that activity is shrinking.
The non-manufacturing PMI, which measures activity in the services sector, plunged to 41.6 last month from 46.7 in November. It also marked the lowest level in nearly three years.
“For the next couple of months, it would be tough for China, and the impact on Chinese growth would be negative,” said Georgieva in an interview aired by CBS News on Sunday. “The impact on the region would be negative. The impact on global growth would be negative.”
Analysts are also expecting the economy to face a bumpy start in 2023 — with a likely contraction in the first quarter, as surging Covid infections dampen consumer spending and disrupt factory activity.
However, some forecast the economy will rebound after March, as people learn to live with Covid. Many investment banks now forecast China’s 2023 growth to top 5%.
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BEIJING — China “stands on the right side of history,” the country’s leader Xi Jinping said Saturday in a New Year’s address that came as questions swirl over his government’s handling of COVID-19 and economic and political challenges at home and abroad.
Speaking on national television from behind a desk in a wood-paneled office, Xi largely avoided directly addressing issues confronting the country, pointing instead to successes in agricultural production, poverty elimination and its hosting of the Winter Olympics in February.
However, he later turned somewhat obliquely to the challenges facing the world’s most populous country and second-largest economy, saying, “The world is not at peace.”
China will “always steadfastly advocate for peace and development … and unswervingly stands on the right side of history,” he said.
Recent weeks have seen street protests against Xi’s government, the first facing the ruling Communist Party in more than three decades.
Xi’s speech follows a stunning U-turn on China’s hard-line COVID-19 containment policy that has sparked a massive surge in infections and demands from the U.S. and others for travelers from China to prove they aren’t infected.
Meanwhile, the economy is fighting its way out of the doldrums, spurring rising unemployment, while ties with the U.S. and other major nations are at historic lows.
Setting aside their uncertainty, people in Beijing and other cities have returned to work, shopping areas and restaurants, with consumers preparing for January’s Lunar New Year holiday, the most significant in the Chinese calendar.
Xi, who is also head of the increasingly powerful armed forces, was in October given a third five-year term as head of the almost 97 million-member Communist Party.
Having sidelined potential rivals and eliminated all limits on his terms in office, he could potentially serve as China’s leader for the rest of his life.
China has also come under pressure for its continued support for Russia, and on Friday, Xi held a virtual meeting with Russian President Vladimir Putin, in which he was quoted as describing the events in Ukraine as a “crisis.”
The term marked a departure from China’s usual references to the “Ukraine situation,” and the change may reflect growing Chinese concern about the direction of the conflict.
Still, in his remarks to Putin, Xi was careful to reiterate Chinese support for Moscow. China has pledged a “no limits” friendship with Russia and hasn’t blamed Putin for the conflict, while attacking the U.S. and NATO and condemning punishing economic sanctions imposed on Russia.
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HONG KONG (AP) — Hong Kong’s leader said Saturday that China has agreed to a reopening of the city’s border with the mainland, which has been largely closed by pandemic restrictions, and that he is aiming for a mid-January start.
Chief Executive John Lee, returning from a trip to Beijing where he met President Xi Jinping and other officials, told reporters at the Hong Kong airport that the two sides would develop a plan to reopen the border in a gradual and orderly manner.
The announcement came as China is easing a “zero-COVID” policy that has restricted entry to the country, isolated infected people and locked down areas with outbreaks.
Hong Kong is a semi-autonomous Chinese territory that borders Guangdong province in southeast China. People must pass through immigration to cross between the two, and most land and sea entry points have been closed and controls tightened because of the pandemic.
Lee has made a full reopening of the border a priority to boost the city’s flagging economy. The issue was one of several on his agenda for this week’s trip to Beijing to deliver an annual report to the central government, his first such report since taking office on July 1.
He offered no details on how the border might be reopened, and whether it would include an elimination of the five days of hotel quarantine required for people entering mainland China.
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