Tag Archives: Guangzhou

COVID protests escalate in Guangzhou as China lockdown anger boils

SHANGHAI/BEIJING, Nov 30 (Reuters) – People in the Chinese manufacturing hub of Guangzhou clashed with white hazmat-suited riot police on Tuesday night, videos on social media showed, as frustration with stringent COVID-19 rules boiled over, three years into the pandemic.

The clashes in the southern city marked an escalation from protests in the commercial hub of Shanghai, capital Beijing and other cities over the weekend in mainland China’s biggest wave of civil disobedience since President Xi Jinping took power a decade ago.

Resentment is growing as China’s COVID-hit economy sputters after decades of breakneck growth, which formed the basis of an unwritten social contract between the ruling Communist Party and a population whose freedoms have been dramatically curtailed under Xi.

In one video posted on Twitter, dozens of riot police in all-white pandemic gear, holding shields over their heads, advanced in formation over what appeared to be torn down lockdown barriers as objects fly at them.

Police were later seen escorting a row of people in handcuffs to an unknown location.

Another video clip showed people throwing objects at the police, while a third showed a tear gas canister landing in the middle of a small crowd on a narrow street, with people then running to escape the fumes.

Reuters verified that the videos were filmed in Guangzhou’s Haizhu district, the scene of COVID-related unrest two weeks ago, but could not determine when the clips were taken or the exact sequence of events and what sparked the clashes.

Social media posts said the clashes took place on Tuesday night and were caused by a dispute over lockdown curbs.

The government of Guangzhou, a city hard-hit in the latest wave of infections, did not immediately respond to a request for comment.

China Dissent Monitor, run by U.S. government-funded Freedom House, estimated at least 27 demonstrations took place across China from Saturday to Monday. Australia’s ASPI think tank estimated 43 protests in 22 cities.

EASING CURBS

Home to many migrant factory workers, Guangzhou is a sprawling port city north of Hong Kong in Guangdong province, where officials announced late on Tuesday they would allow close contacts of COVID cases to quarantine at home rather than being forced to go to shelters.

The decision broke with the usual practice under China’s zero-COVID policy.

In Zhengzhou, the site of a big Foxconn factory making Apple iPhones that has been the scene of worker unrest over COVID, officials announced the “orderly” resumption of businesses, including supermarkets, gyms and restaurants.

However, they also published a long list of buildings that would remain under lockdown.

Hours before those announcements, national health officials said on Tuesday that China would respond to “urgent concerns” raised by the public and that COVID rules should be implemented more flexibly, according to each region’s conditions.

But while the easing of some measures, which comes as China posts daily record numbers of COVID cases, appears to be an attempt to appease the public, authorities have also begun to seek out those who have been at recent protests.

“Police came to my front door to ask me about it all and get me to complete a written record,” a Beijing resident who declined to be identified told Reuters on Wednesday.

Another resident said some friends who posted videos of protests on social media were taken to a police station and asked to sign a promise they “would not do that again”.

It was not clear how authorities identified the people they wanted questioned, nor how many such people authorities contacted.

Beijing’s Public Security Bureau did not comment.

On Wednesday, several police cars and security personnel were posted at an eastern Beijing bridge where a protest took place three days earlier.

‘HOSTILE FORCES’

In a statement that did not refer to the protests, the Communist Party’s top body in charge of law enforcement agencies said late on Tuesday that China would resolutely crack down on “the infiltration and sabotage activities of hostile forces”.

The Central Political and Legal Affairs Commission also said “illegal and criminal acts that disrupt social order” would not be tolerated.

The foreign ministry has said rights and freedoms must be exercised within the law.

White House national security spokesperson John Kirby said on Tuesday that protesters in China should not be harmed.

COVID has spread despite China largely isolating itself from the world and demanding significant sacrifices from hundreds of millions to comply with relentless testing and prolonged isolation.

While infections and death numbers are low by global standards, analysts say that a reopening before increasing vaccination rates could lead to widespread illness and deaths and overwhelm hospitals.

The lockdowns have hammered the economy, disrupting global supply chains and roiling financial markets.

Data on Wednesday showed China’s manufacturing and services activity for November posting the lowest readings since Shanghai’s two-month lockdown began in April. read more

Chinese stocks (.SSEC), (.CSI300) were steady, with markets weighing endemic economic weakness against hopes that the public pressure could push China to eventually reopen.

International Monetary Fund chief Kristalina Georgieva flagged a possible downgrade in China growth forecasts.

Additional reporting by Eduardo Baptista and Yew Lun Tian in Beijing; Writing by Marius Zaharia; Editing by Michael Perry, Robert Birsel

Our Standards: The Thomson Reuters Trust Principles.

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Guangzhou lockdown: Chinese are criticizing zero-Covid — in language censors don’t seem to understand


Hong Kong
CNN
 — 

In many countries, cursing online about the government is so commonplace nobody bats an eye. But it’s not such an easy task on China’s heavily censored internet.

That doesn’t appear to have stopped residents of Guangzhou from venting their frustration after their city – a global manufacturing powerhouse home to 19 million people – became the epicenter of a nationwide Covid outbreak, prompting lockdown measures yet again.

“We had to lock down in April, and then again in November,” one resident posted on Weibo, China’s restricted version of Twitter, on Monday – before peppering the post with profanities that included references to officials’ mothers. “The government hasn’t provided subsidies – do you think my rent doesn’t cost money?”

Other users left posts with directions that loosely translate to “go to hell,” while some accused authorities of “spouting nonsense” – albeit in less polite phrasing.

Such colorful posts are remarkable not only because they represent growing public frustration at China’s unrelenting zero-Covid policy – which uses snap lockdowns, mass testing, extensive contact-tracing and quarantines to stamp out infections as soon as they emerge – but because they remain visible at all.

Normally such harsh criticisms of government policies would be swiftly removed by the government’s army of censors, yet these posts have remained untouched for days. And that is, most likely, because they are written in language few censors will fully understand.

These posts are in Cantonese, which originated in Guangzhou’s surrounding province of Guangdong and is spoken by tens of millions of people across Southern China. It can be difficult to decipher by speakers of Mandarin – China’s official language and the one favored by the government – especially in its written and often complex slang forms.

And this appears to be just the latest example of how Chinese people are turning to Cantonese – an irreverent tongue that offers rich possibilities for satire – to express discontent toward their government without attracting the notice of the all-seeing censors.

In September this year, US-based independent media monitoring organization China Digital Times noted numerous dissatisfied Cantonese posts slipping past censors in response to mass Covid testing requirements in Guangdong.

“Perhaps because Weibo’s content censorship system has difficulty recognizing the spelling of Cantonese characters, many posts in spicy, bold and straightforward language ​​still survive. But if the same content is written in Mandarin, it is likely to be blocked or deleted,” said the organization, which is affiliated with the University of California, Berkeley.

In nearby Cantonese-speaking Hong Kong, anti-government demonstrators in 2019 often used Cantonese wordplay both for protest slogans and to guard against potential surveillance by mainland Chinese authorities.

Now, Cantonese appears to be offering those fed-up with China’s continuous zero-Covid lockdowns an avenue for more subtle displays of dissent.

Jean-François Dupré, an assistant professor of political science at Université TÉLUQ who has studied the language politics of Hong Kong, said the Chinese government’s shrinking tolerance for public criticism has pushed its critics to “innovate” in their communication.

“It does seem that using non-Mandarin forms of communication could enable dissenters to evade online censorship, at least for some time,” Dupré said.

“This phenomenon testifies to the regime’s lack of confidence and increasing paranoia, and of citizens’ continuing eagerness to resist despite the risks and hurdles.”

Though Cantonese shares much of its vocabulary and writing system with Mandarin, many of its slang terms, expletives and everyday phrases have no Mandarin equivalent. Its written form also sometimes relies on rarely used and archaic characters, or ones that mean something totally different in Mandarin, so Cantonese sentences can be difficult for Mandarin readers to understand.

Compared to Mandarin, Cantonese is highly colloquial, often informal, and lends itself easily to wordplay – making it well-suited for inventing and slinging barbs.

When Hong Kong was rocked by anti-government protests in 2019 – fueled in part by fears Beijing was encroaching on the city’s autonomy, freedoms and culture – these attributes of Cantonese came into sharp focus.

“Cantonese was, of course, an important conveyor of political grievances during the 2019 protests,” Dupré said, adding that the language gave “a strong local flavor to the protests.”

He pointed to how entirely new written characters were born spontaneously from the pro-democracy movement – including one that combined the characters for “freedom” with a popular profanity.

Other plays on written characters illustrate the endless creativity of Cantonese, such as a stylized version of “Hong Kong” that, when read sideways, becomes “add oil” – a rallying cry in the protests.

Protesters also found ways to protect their communications, wary that online chat groups – where they organized rallies and railed against the authorities – were being monitored by mainland agents.

For example, because spoken Cantonese sounds different to spoken Mandarin, some people experimented with romanizing Cantonese – spelling out the sounds using the English alphabet – thereby making it virtually impossible to understand for a non-native speaker.

And, while the protests died down after the Chinese government imposed a sweeping national security law in 2020, Cantonese continues to offer the city’s residents an avenue for expressing their unique local identity – something people have long feared losing as the city is drawn further under Beijing’s grip.

For some, using Cantonese to criticize the government seems particularly fitting given the central government has aggressively pushed for Mandarin to be used nationwide in education and daily life – for instance, in television broadcasts and other media – often at the expense of regional languages and dialects.

These efforts turned into national controversy in 2010, when government officials suggested increasing Mandarin programming on the primarily-Cantonese Guangzhou Television channel – outraging residents, who took part in rare mass street rallies and scuffles with police.

It’s not just Cantonese affected – many ethnic minorities have voiced alarm that the decline of their native languages could spell an end to cultures and ways of life they say are already under threat.

In 2020, students and parents in Inner Mongolia staged mass school boycotts over a new policy that replaced the Mongolian language with Mandarin in elementary and middle schools.

Similar fears have long existed in Hong Kong – and grew in the 2010s as more Mandarin-speaking mainlanders began living and working in the city.

“Growing numbers of Mandarin-speaking schoolchildren have been enrolled in Hong Kong schools and been seen commuting between Shenzhen and Hong Kong on a daily basis,” Dupré said. “Through these encounters, the language shift that has been operating in Guangdong became quite visible to Hong Kong people.”

He added that these concerns were heightened by local government policies that emphasized the role of Mandarin, and referred to Cantonese as a “dialect” – infuriating some Hong Kongers who saw the term as a snub and argued it should be referred to as a “language” instead.

In the past decade, schools across Hong Kong have been encouraged by the government to switch to using Mandarin in Chinese lessons, while others have switched to teaching simplified characters – the written form preferred in the mainland – instead of the traditional characters used in Hong Kong.

There was further outrage in 2019 when the city’s education chief suggested that continued use of Cantonese over Mandarin in the city’s schools could mean Hong Kong would lose its competitive edge in the future.

“Given Hong Kong’s rapid economic and political integration, it wouldn’t be surprising to see Hong Kong’s language regime be brought in line with that of the mainland, especially where Mandarin promotion is concerned,” Dupré said.

It’s not the first time people in the mainland have found ways around the censors. Many use emojis to represent taboo phrases, English abbreviations that represent Mandarin phrases, and images like cartoons and digitally altered photos, which are harder for censors to monitor.

But these methods, by their very nature, have their limits. In contrast, for the fed-up residents of Guangzhou, Cantonese offers an endless linguistic landscape with which to lambast their leaders.

It’s not clear whether these more subversive uses of Cantonese will encourage greater solidarity between its speakers in Southern China – or whether it could encourage the central government to further clamp down on the use of local dialects, Dupré said.

For now though, many Weibo users have embraced the rare opportunity to voice frustration with China’s zero-Covid policy, which has battered the country’s economy, isolated it from the rest of the world, and disrupted people’s daily lives with the constant threat of lockdowns and unemployment.

“I hope everyone can maintain their anger,” wrote one Weibo user, noting how most of the posts relating to the Guangzhou lockdowns were in Cantonese.

“Watching Cantonese people scolding (authorities) on Weibo without getting caught,” another posted, using characters that signify laughter.

“Learn Cantonese well, and go across Weibo without fear.”

Read original article here

Guangzhou lockdown: Chinese are criticizing zero-Covid — in language censors don’t understand


Hong Kong
CNN
 — 

In many countries, cursing online about the government is so commonplace nobody bats an eye. But it’s not such an easy task on China’s heavily censored internet.

That doesn’t appear to have stopped residents of Guangzhou from venting their frustration after their city – a global manufacturing powerhouse home to 19 million people – became the epicenter of a nationwide Covid outbreak, prompting lockdown measures yet again.

“We had to lock down in April, and then again in November,” one resident posted on Weibo, China’s restricted version of Twitter, on Monday – before peppering the post with profanities that included references to officials’ mothers. “The government hasn’t provided subsidies – do you think my rent doesn’t cost money?”

Other users left posts with directions that loosely translate to “go to hell,” while some accused authorities of “spouting nonsense” – albeit in less polite phrasing.

Such colorful posts are remarkable not only because they represent growing public frustration at China’s unrelenting zero-Covid policy – which uses snap lockdowns, mass testing, extensive contact-tracing and quarantines to stamp out infections as soon as they emerge – but because they remain visible at all.

Normally such harsh criticisms of government policies would be swiftly removed by the government’s army of censors, yet these posts have remained untouched for days. And that is, most likely, because they are written in language few censors will fully understand.

These posts are in Cantonese, which originated in Guangzhou’s surrounding province of Guangdong and is spoken by tens of millions of people across Southern China. It can be difficult to decipher by speakers of Mandarin – China’s official language and the one favored by the government – especially in its written form.

And this appears to be just the latest example of how Chinese people are turning to Cantonese – an irreverent tongue that offers rich possibilities for satire – to express discontent toward their government without attracting the notice of the all-seeing censors.

In nearby Cantonese-speaking Hong Kong, anti-government demonstrators in 2019 often used Cantonese wordplay both for protest slogans and to guard against potential surveillance by mainland Chinese authorities.

Now, Cantonese appears to be offering those fed-up with China’s strict zero-Covid policies an avenue for more subtle displays of dissent.

Jean-François Dupré, an assistant professor of political science at Université TÉLUQ who has studied the language politics of Hong Kong, said the Chinese government’s shrinking tolerance for public criticism has pushed its critics to “innovate” in their communication.

“It does seem that using non-Mandarin forms of communication could enable dissenters to evade online censorship, at least for some time,” Dupré said.

“This phenomenon testifies to the regime’s lack of confidence and increasing paranoia, and of citizens’ continuing eagerness to resist despite the risks and hurdles.”

Though Cantonese shares much of its vocabulary and writing system with Mandarin, many of its slang terms, expletives and everyday phrases have no Mandarin equivalent. Its written form also sometimes relies on rarely used and archaic characters, or ones that mean something totally different in Mandarin, so Cantonese sentences can be difficult for Mandarin readers to understand.

Compared to Mandarin, Cantonese is highly colloquial, often informal, and lends itself easily to wordplay – making it well-suited for inventing and slinging barbs.

When Hong Kong was rocked by anti-government protests in 2019 – fueled in part by fears Beijing was encroaching on the city’s autonomy, freedoms and culture – these attributes of Cantonese came into sharp focus.

“Cantonese was, of course, an important conveyor of political grievances during the 2019 protests,” Dupré said, adding that the language gave “a strong local flavor to the protests.”

He pointed to how entirely new written characters were born spontaneously from the pro-democracy movement – including one that combined the characters for “freedom” with a popular profanity.

Other plays on written characters illustrate the endless creativity of Cantonese, such as a stylized version of “Hong Kong” that, when read sideways, becomes “add oil” – a rallying cry in the protests.

Protesters also found ways to protect their communications, wary that online chat groups – where they organized rallies and railed against the authorities – were being monitored by mainland agents.

For example, because spoken Cantonese sounds different to spoken Mandarin, some people experimented with romanizing Cantonese – spelling out the sounds using the English alphabet – thereby making it virtually impossible to understand for a non-native speaker.

And, while the protests died down after the Chinese government imposed a sweeping national security law in 2020, Cantonese continues to offer the city’s residents an avenue for expressing their unique local identity – something people have long feared losing as the city is drawn further under Beijing’s grip.

For some, using Cantonese to criticize the government seems particularly fitting given the central government has aggressively pushed for Mandarin to be used nationwide in education and daily life – for instance, in television broadcasts and other media – often at the expense of regional languages and dialects.

These efforts turned into national controversy in 2010, when government officials suggested increasing Mandarin programming on the primarily-Cantonese Guangzhou Television channel – outraging residents, who took part in rare mass street rallies and scuffles with police.

It’s not just Cantonese affected – many ethnic minorities have voiced alarm that the decline of their native languages could spell an end to cultures and ways of life they say are already under threat.

In 2020, students and parents in Inner Mongolia staged mass school boycotts over a new policy that replaced the Mongolian language with Mandarin in elementary and middle schools.

Similar fears have long existed in Hong Kong – and grew in the 2010s as more Mandarin-speaking mainlanders began living and working in the city.

“Growing numbers of Mandarin-speaking schoolchildren have been enrolled in Hong Kong schools and been seen commuting between Shenzhen and Hong Kong on a daily basis,” Dupré said. “Through these encounters, the language shift that has been operating in Guangdong became quite visible to Hong Kong people.”

He added that these concerns were heightened by local government policies that emphasized the role of Mandarin, and referred to Cantonese as a “dialect” – infuriating some Hong Kongers who saw the term as a snub and argued it should be referred to as a “language” instead.

In the past decade, schools across Hong Kong have been encouraged by the government to switch to using Mandarin in Chinese lessons, while others have switched to teaching simplified characters – the written form preferred in the mainland – instead of the traditional characters used in Hong Kong.

There was further outrage in 2019 when the city’s education chief suggested that continued use of Cantonese over Mandarin in the city’s schools could mean Hong Kong would lose its competitive edge in the future.

“Given Hong Kong’s rapid economic and political integration, it wouldn’t be surprising to see Hong Kong’s language regime be brought in line with that of the mainland, especially where Mandarin promotion is concerned,” Dupré said.

It’s not the first time people in the mainland have found ways around the censors. Many use emojis to represent taboo phrases, English abbreviations that represent Mandarin phrases, and images like cartoons and digitally altered photos, which are harder for censors to monitor.

But these methods, by their very nature, have their limits. In contrast, for the fed-up residents of Guangzhou, Cantonese offers an endless linguistic landscape with which to lambast their leaders.

It’s not clear whether these more subversive uses of Cantonese will encourage greater solidarity between its speakers in Southern China – or whether it could encourage the central government to further clamp down on the use of local dialects, Dupré said.

For now though, many Weibo users have embraced the rare opportunity to voice frustration with China’s zero-Covid policy, which has battered the country’s economy, isolated it from the rest of the world, and disrupted people’s daily lives with the constant threat of lockdowns and unemployment.

“I hope everyone can maintain their anger,” wrote one Weibo user, noting how most of the posts relating to the Guangzhou lockdowns were in Cantonese.

“Watching Cantonese people scolding (authorities) on Weibo without getting caught,” another posted, using characters that signify laughter.

“Learn Cantonese well, and go across Weibo without fear.”

Read original article here

Covid outbreak worsens in southern Chinese city of Guangzhou

Guangzhou city in the southern province of Guangdong is the hardest hit in the latest Covid outbreak. Pictured here are closed stores in part of the city on Oct. 31, 2022.

Vcg | Visual China Group | Getty Images

BEIJING — Covid infections are surging in the capital of China’s export-heavy Guangdong province, raising concerns of another drag on the national economy.

Schools in eight of 11 districts in the city of Guangzhou moved classes online for most students as of Thursday. In the last few days, more parts of the city have ordered people to stay home, and non-essential businesses to close.

“As things stand, it is hard to tell whether Guangzhou will repeat the experience of Shanghai in spring this year,” Nomura’s chief China economist Ting Lu and a team said in a note late Wednesday. “If Guangzhou repeats what Shanghai did in spring, it will lead to a new round of pessimism on China.”

Earlier this year, the metropolis of Shanghai locked down for about two months and broader Covid controls resulted in a second-quarter national GDP that grew by only 0.4%, according to official figures. GDP bounced back in the third quarter with 3.9% growth, but then exports unexpectedly dropped in October.

It was not immediately clear to what extent Guangzhou’s latest business restrictions affected the ability of factories to operate. Many manufacturers are located outside the city but in the same province.

State-owned automaker GAC Group said its manufacturers in Guangzhou were operating normally as of Thursday morning. “The epidemic has not caused substantial impact,” the company said in a statement.

In just a week, the number of Covid infections with symptoms in Guangdong has multiplied five times to 500 as of Wednesday. During that time, infections without symptoms surged seven times to about 2,500 cases.

The latest outbreak prompted the American Chamber of Commerce in China to postpone an event in Guangzhou, which was already delayed from September, Michael Hart, president of the chamber, said Thursday. He expects two more of the chamber’s events in the city this year will be postponed.

“These travel impacts are hurting the abilities of local governments to pitch for investments,” Hart said, noting such investments were not lost but delayed.

“I’ve canceled more travel than I’ve actually been able to do,” he said.

Late fall is a popular time for conferences and business travel in China.

Notably, Guangzhou has indefinitely delayed its auto show that was set to kick off next week. The country’s biggest auto show that Beijing was supposed to host earlier this year was never rescheduled.

More travel restrictions

“Probably a bigger concern [than getting sick] is what does [travel] do to your Beijing health code and can you get back?” Hart said, referring to a government smartphone app for tracking Covid exposure.

The city requires anyone entering a shopping mall, taxi or public space to use the app. The venue can deny entry if the app shows the individual does not have a negative Covid test result from within the last three days — or bears a “pop-up window” that’s supposed to indicate suspected contact with a Covid infection.

The pop-up window prevents people from entering Beijing.

Its appearance has become so frequent and somewhat unpredictable that a Chinese commentator said in a widely shared video that every business trip outside of Beijing was a choice between family and work. The video was removed from public view by Thursday morning.

Read more about China from CNBC Pro

The Beijing health code app’s pop-up window also affects the mobility of people within the capital city, which has reported a growing number of infections over the last several days.

“In Beijing, you just assume a certain percentage of the workforce is going to have pop-up window issues,” Hart said, noting virus testing requirements for some office buildings has increased to once every 24 hours. “Instead of getting looser it’s getting tighter in some areas.”

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China’s manufacturing hub Guangzhou partially locked down as Covid outbreak widens

Editor’s Note: A version of this story appeared in CNN’s Meanwhile in China newsletter, a three-times-a-week update exploring what you need to know about the country’s rise and how it impacts the world. Sign up here.


Hong Kong
CNN
 — 

China’s southern metropolis of Guangzhou has locked down more than 5 million residents, as authorities rush to stamp out a widening Covid outbreak and avoid activating the kind of citywide lockdown that devastated Shanghai earlier this year.

Guangzhou reported 2,555 local infections on Wednesday, accounting for nearly one third of new cases across China, which is experiencing a six-month high in infections nationwide.

The city of 19 million has become the epicenter of China’s latest Covid outbreak, logging more than 1,000 new cases – a relatively high figure by the country’s zero-Covid standards – for five straight days.

As the world moves away from the pandemic, China still insists on using snap lockdowns, mass testing, extensive contact-tracing and quarantines to stamp out infections as soon as they emerge. The zero-tolerance approach has faced increasing challenge from the highly transmissible Omicron variant, and its heavy economic and social costs have drawn mounting public backlash.

The ongoing outbreak is the worst since the start of the pandemic to have hit Guangzhou. The city is the capital of Guangdong province, which is a major economic powerhouse for China and a global manufacturing hub.

Most cases in Guangzhou have been centered in Haizhu district – a mostly residential urban district of 1.8 million people on the southern bank of the Pearl River. Haizhu was locked down last Saturday, with residents told not to leave home unless necessary and all public transport – from buses to subways – suspended. The lockdown was initially supposed to last for three days, but has since been extended to Friday.

Two more districts – with a combined population of 3.8 million – were locked down on Wednesday as the outbreak widened.

Residents in Liwan, an old district in the west of the city, woke to an order to stay at home unless absolutely necessary. College and universities in the district were told to lock down their campuses. Restaurant dining was banned and businesses ordered to shut, apart from those providing essential supplies.

On Wednesday afternoon, a third district, the outlying Panyu, announced a lockdown that will last till Sunday. The district also banned private vehicles and bicycles from the streets.

Starting from Thursday, all primary and middle schools in the city’s eight urban districts are moving class online, with kindergartens closed. Tutoring classes, training institutions and daycare centers will also suspend services, the city’s education officials told a news conference Wednesday.

Mass testing has been rolled out in nine districts across the city, and more than 40 subway stations have been closed. Residents deemed close contacts of infected persons – which in China can range from neighbors to those living in the same building or even residential compound – have been transferred en masse to centralized quarantine facilities.

The outbreak has also led to mass cancellations at the Guangzhou Baiyun International Airport, one of the busiest in the country. As of Thursday morning, 85% of the nearly 1,000 flights arriving and departing from Guangzhou had been canceled, according to data from flight tracking company Variflight.

“At present, there is still the risk of community spread in non-risk areas, and the outbreak remains severe and complex,” Zhang Yi, deputy director of the Guangzhou municipal health commission, told a news conference Tuesday.

So far, the lockdown appears to be more targeted and less draconian than those seen in many other cities. While residents living in neighborhoods designated as high-risk cannot leave home, those in so-called low-risk areas within locked down districts can go out to buy groceries and other daily necessities.

But many fear a blanket, citywide lockdown could be imminent if the outbreak continues to spread. On WeChat, China’s super app, residents share charts comparing Guangzhou’s surging caseload with that of Shanghai’s in late March, in the days before the eastern financial hub’s bruising two-month lockdown.

Shanghai officials initially denied a citywide lockdown was necessary, but then imposed one after the city reported 3,500 daily infections.

Anticipating that worse is to come, many residents in Guangzhou have stocked up on food and other supplies. “I’ve been buying (groceries and snacks) online like crazy. I’ll probably end up eating leftovers for a month,” said one resident, whose area of Haizhu district was categorized as low-risk by authorities.

Others, angered by the restrictions and testing edicts, have taken to social media to vent their frustration. On Weibo, China’s Twitter-like platform, posts using slang and expletives in the local Cantonese dialect to criticize zero-Covid measures have proliferated, seemingly largely evading the eyes of online censors who do not understand it.

“I learn Cantonese curse words in real-time hot search everyday,” one Weibo user said.

Meanwhile local authorities nationwide are under pressure to ramp up Covid control measures despite mounting public frustration.

This week, videos of Covid workers dressed head to toe in hazmat suits beating up residents went viral online. Following an outcry, police in Linyi city, Shandong province said in a statement Tuesday that seven Covid workers had been detained following a clash with residents.

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China’s COVID epicentre shifts to Guangzhou as outbreaks widen

  • Southern manufacturing hub fighting worst COVID-19 flare-up
  • Cases double in Zhengzhou, production base for Apple supplier
  • Chinese stocks, currency slip over virus fears

BEIJING, Nov 8 (Reuters) – New coronavirus cases surged in Guangzhou and other Chinese cities, official data showed on Tuesday, with the global manufacturing hub becoming China’s latest COVID-19 epicentre and testing the city’s ability to avoid a Shanghai-style lockdown.

Nationwide, new locally transmitted infections climbed to 7,475 on Nov. 7, according to China’s health authority, up from 5,496 the day before and the highest since May 1. Guangzhou accounted for nearly a third of the new infections.

The increase was modest by global standards but significant for China, where outbreaks are to be quickly tackled when they surface under its zero-COVID policy. Economically vital cities, including the capital Beijing, are demanding more PCR tests for residents and locking down neighbourhoods and even districts in some cases.

The sharp rebound will test China’s ability to keep its COVID measures surgical and targeted, and could dampen investors’ hopes that the world’s second-largest economy could ease curbs and restrictions soon.

“We are seeing a game between rising voices for loosening controls and rapid spreading of COVID cases,” said Nie Wen, a Shanghai-based economist at Hwabao Trust.

Considering how the nationwide COVID curbs are crushing domestic consumption, Nie said he had downgraded his fourth-quarter economic growth forecast to around 3.5% from 4%-4.5%. The economy grew 3.9% in July-September.

The rising case load dragged on China’s stock markets on Tuesday, but shares have not yet surrendered last week’s big gains.

Investors see China’s beaten-down markets as an attractive prospect as a global slowdown looms, and have focused on small clues of gradual change – such as more targeted lockdowns and progress on vaccination rates.

“No matter how harsh the letter of the law is…there is a little bit more loosening,” said Damien Boey, chief macro strategist at Australian investment bank Barrenjoey.

NO FULL LOCKDOWN YET

Guangzhou, capital of Guangdong province, reported 2,377 new local cases for Nov. 7, up from 1,971 the previous day. It was a dramatic jump from double-digit increases two weeks ago.

Surging case numbers in the sprawling southern city, dubbed the “factory floor of the world”, means Guangzhou has surpassed the northern Inner Mongolia city of Hohhot to become China’s COVID epicentre, in its most serious outbreak ever.

Many of Guangzhou’s districts, including central Haizhu, have imposed varying levels of curbs and lockdowns. But, so far, the city has not imposed a blanket lockdown like the one in Shanghai earlier this year.

Shanghai, currently not facing a COVID resurgence, went into a lockdown in April and May after reporting several thousand new infections daily in the last week of March.

“We have been working from home for the past couple of days,” said Aaron Xu, who runs a company in Guangzhou.

“Only a few compounds have been locked up so far. Mostly we are seeing disruptions in the form of public transit services being suspended and compound security barring couriers and food delivery. And we have to do PCR tests every day.”

RISING CASES

In Beijing, authorities detected 64 new local infections, a small uptick relative to Guangzhou and Zhengzhou, but enough to spark a new burst of PCR tests for many of its residents and a lockdown of more buildings and neighbourhoods.

“The lockdown situation has continued to deteriorate quickly across the country over the past week, with our in-house China COVID lockdown index rising to 12.2% of China’s total GDP from 9.5% last Monday,” Nomura wrote in a note on Monday.

Zhengzhou, capital of central Henan province and a major production base for Apple (AAPL.O) supplier Foxconn (2317.TW), reported 733 new local cases for Nov. 7, more than doubling from a day earlier.

In the southwest metropolis of Chongqing, the city reported 281 new local cases, also more than doubling from 120 a day earlier.

In the coal-producing region of Inner Mongolia, the city of Hohhot reported 1,760 new local cases for Nov. 7, up from 1,013 a day earlier.

Reporting by Ryan Woo, Bernard Orr, Liz Lee and Jing Wang; Additional reporting by Josh Ye in Hong Kong and Tom Westbrook in Singapore; Editing by Raju Gopalakrishnan, Stephen Coates and Raissa Kasolowsky

Our Standards: The Thomson Reuters Trust Principles.

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Cryptocurrency market cap tops $2 trillion for the first time

In 2021, bitcoin and ether have seen huge rallies. In April 2021, the cryptocurrency market topped $2 trillion in value for the first time.

Jaap Arriens | NurPhoto | Getty Images

GUANGZHOU, China — The value of the cryptocurrency market topped $2 trillion for the first time on Monday driven by a rally in ether, the second-largest digital coin.

In just over two months, the market capitalization of the cryptocurrency market has doubled, according to price tracking website CoinGecko, as retail and institutional investors pile into the space.

Bitcoin, the biggest digital currency, accounts for over 50% of the entire cryptocurrency market capitalization. Bitcoin has rallied over 100% this year alone, and that has helped drive the cryptocurrency market higher.

Last month, bitcoin hit a record high of above $61,000. The digital coin was trading at about $58,800 on Tuesday, according to Coindesk data.

Ether rally

But the latest boost in the cryptocurrency market appears to have been driven by ether, the digital coin that powers the Ethereum blockchain.

Bitcoin also runs on a technology called blockchain which is a public ledger of activity and a way for transactions to take place using the cryptocurrency. In comparison, the Ethereum blockchain is more like a software platform that allows developers to build apps on top of it. Users can then spend ether on these apps.

So-called smart contracts are a key feature of Ethereum. These are contracts that can be automatically executed using code.

There is growing excitement about the use of Ethereum in so-called decentralized finance, or DeFi, applications. These are blockchain-based financial services, such as lending, which could in theory bypass banks and brokerages. Users of these apps may transact using cryptocurrency.

Ethereum also has the underlying technology behind the recent craze in non-fungible tokens, or NFTs — a new type of digital asset.

Bitcoin interest

Bitcoin still remains the powerhouse of the cryptocurrency market and over the last few months, saw a big increase in interest among companies and large institutional investors.

Tesla and Square are among a handful of companies that have purchased bitcoin.

Meanwhile, major investment banks are exploring ways to allow clients to get involved with digital asset investments. In March, CNBC reported that Morgan Stanley became the first major U.S. bank to offer its wealth management clients access to bitcoin funds. CNBC also reported last month that Goldman Sachs is gearing up to launch its first investment vehicles for bitcoin and other digital assets to clients of its private wealth management group.

There is also hope among investors for an expanding portfolio of investment products and many are watching Grayscale Investments, which runs one of the largest publicly traded bitcoin funds. It is known as the Grayscale Bitcoin Trust.

The company said on Monday that it is “100% committed” to converting that trust into an exchange-traded fund, or ETF. That would effectively track the price of bitcoin and allow traders to play the price movement without owning the cryptocurrency itself. It could be a way for more investors to be involved in the bitcoin market.

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Tencent Music announces $1 billion share buyback program

Executives of Tencent Music Entertainment celebrate the company’s IPO outside the New York Stock Exchange (NYSE) in New York, U.S., December 12, 2018

Bryan R Smith | Reuters

GUANGZHOU, China — Tencent Music Entertainment Group announced plans to buy back up to $1 billion worth of shares on Monday after the U.S.-listed stock suffered a huge drop last week.

The repurchases can start on Monday and will take place over the next 12 months.

Tencent Music is the online music arm of Chinese technology giant Tencent which runs streaming services and apps. The company, which is listed on the New York Stock Exchange, lost about a third of its value last week amid a sell-off in Chinese technology stocks.

Part of that selling came after the U.S. Securities and Exchange Commission (SEC) adopted a law which could lead to delisting of foreign firms that fall foul of the new auditing rules.

But further pressure came on Friday after Archegos Capital Management was forced to liquidate positions it held in some major Chinese technology names, CNBC reported.

Tencent Music will repurchase Class A ordinary shares in the form of American depositary shares, it said in a statement.

“The Share Repurchase Program is a strong indication of the Board’s confidence in the Company’s business outlook and long-term strategy, and we believe it will ultimately benefit TME (Tencent Music Entertainment) and create value for its shareholders,” Tong Tao Sang, chairman of the board, said.

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Chinese tech stocks fall as U.S. SEC begins law aimed at delisting

A trader works on the floor of the New York Stock Exchange (NYSE) after the opening bell of the trading session in New York, U.S., March 13, 2020.

Lucas Jackson | Reuters

GUANGZHOU, China — Major dual-listed Chinese technology shares trading in Hong Kong were hammered on Thursday amid fears that some companies could be de-listed in the U.S.

Hong Kong shares of U.S.-listed Chinese tech stocks fell sharply. Alibaba was down over 4% at 1:04 p.m. Hong Kong time, Baidu tanked over 8%, JD.com fell over 4% and NetEase was nearly 3% lower.

It comes one day after the U.S. Securities and Exchange Commission (SEC) adopted a law called the Holding Foreign Companies Accountable Act, which was passed by the administration of former President Donald Trump.

Certain companies identified by the SEC will require auditing by a U.S. watchdog. These companies will be required to submit certain documents to establish that they are not owned or controlled by a governmental entity in a foreign jurisdiction.

Chinese companies will have to name each board member who is a Chinese Communist Party official, the SEC said Wednesday.

The U.S. regulator could stop the trading of securities that fall foul of its rules.

Chinese technology companies are not only under pressure from the delisting threat abroad, but also concerns over a stricter regulations at home. Beijing has looked to reign in the power of technology giants and establish new rules in areas from financial technology to e-commerce.

While the Chinese government’s crackdown started with billionaire Jack Ma’s empire, including the suspension of the mega initial public offering of Ant Group, there are signs that Beijing’s targets could extend beyond Ant.

Reuters reported this week that Tencent founder Pony Ma met with Chinese antitrust officials this month. Tencent is only listed in Hong Kong and its shares were more than 2% lower at around 1:17 p.m. Hong Kong time.

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Baidu shares debut in Hong Kong secondary listing

Robin Li Yanhong, co-founder and chief executive officer of Baidu in Beijing, China in October 2018.

Visual China Group | Getty Images

GUANGZHOU, China — Baidu shares rose just under 1% at the open in the company’s Hong Kong debut Tuesday.

The Chinese technology giant, which is already listed in the U.S., raised $3.1 billion in the Hong Kong secondary listing. Shares pared those gains during morning trade.

Unlike initial public offerings, secondary listings may not be greeted with massive first-day rallies as shares of the company are already trading on another exchange.

The Hong Kong listing is a big moment for Baidu, China’s largest search engine. The company has had a rough couple years from mid-2018 and lagged behind rivals such as Alibaba and Tencent. Baidu failed to move quickly as Chinese users flocked to mobile search and a tough advertising market hurt the business.

But a turnaround, led by CEO Robin Li, has centered on convincing investors that the technology giant is a leader in artificial intelligence and autonomous driving in a bid to diversify its revenue stream beyond advertising. And that seems to paying off.

In mid-May 2018, Baidu’s U.S.-listed shares closed at $284.07 a share, a record high at the time. But the stock subsequently fell over 70% to a trough of $83.62 in March 2020 amid the stock market crash. That was the lowest close since April 2013.

But since the March 2020 low, shares have rallied over 200%. Baidu shares hit an all time high of $354.82 in February.

“I think EV (electric vehicles) is part of the story. At the same time, cloud computing, integrating AI, these are all the areas where Baidu has been investing in very heavily really since 2014 and we’re just starting to see the fruits of those labors,” Brendan Ahern, chief investment officer at KraneShares, told “Squawk Box Asia” on Tuesday.

Baidu has an autonomous driving system called Apollo which can be sold to automakers. The company started a standalone electric vehicle company in partnership with Chinese carmaker Geely. Baidu is also testing robotaxis in cities including in Beijing. And last month, the firm launched a smart transportation project in the southern Chinese city of Guangzhou, its biggest yet.

James Lee, U.S. and China internet analyst at Mizuho Securities, has a $350 price target on Baidu’s U.S.-listed shares, which is 31% higher than Monday’s closing price on Wall Street. He said that the autonomous driving business could be valued at $40 billion and that the Chinese government will continue to support this industry with favorable policies. Lee also said he expects Baidu’s advertising business to continue to gain momentum in the first quarter of this year.

“We do like the fundamentals of the company and we continue to expect the Baidu shares will outperform the market,” Lee told “Street Signs Asia” on Tuesday.

Meanwhile, Baidu has been looking to further diversify its revenue streams. The company has raised money for its Kunlun artificial intelligence semiconductor unit which is valued at $2 billion.

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