Tag Archives: Protests

China Covid protests: Top health officials deflect blame as they defend controversial policy



CNN
 — 

China’s top health officials have pledged to rectify Covid-19 control measures to reduce their impact on people’s lives, while deflecting blame for public frustration away from the policy itself, in their first press briefing since protests erupted against the government’s stringent zero-Covid policy over the weekend.

Lockdowns to suppress the spread of the virus should be lifted “as quickly as possible” following outbreaks, said health officials at a National Health Commission press briefing in Beijing on Tuesday, as they defended the country’s overall policy direction – which aims to stamp out the spread of the virus through hefty controls.

Cheng Youquan, a director at the China Center for Disease Control and Prevention, said “some issues” reported recently by the public are not due to the measures, but their application by local officials taking a “one-size-fits-all approach.” He said some controls had been implemented “excessively,” with disregard for the people’s demands.

Protests against the country’s zero-Covid policy, which includes a combination of lockdowns, forced quarantines and tight border controls, flared across China over the weekend, with citizens taking to city streets and college campuses to call for an end to the restrictive measures.

While protests in several parts of China appear to have largely dispersed peacefully over the weekend, some met a stronger response from authorities – and security has been tightened across cities with police deployed to key protest sites in the wake of the demonstrations.

Officials at Tuesday’s press briefing did not directly address the protests, but commission spokesperson Mi Feng said governments should “respond to and resolve the reasonable demands of the masses” in a timely manner.

When asked if the government is reconsidering its Covid policies, Mi said authorities “have been studying and adjusting our pandemic containment measures to protect the people’s interest to the largest extent and limit the impact on people as much as possible.”

Earlier this month, China announced 20 measures that were meant to streamline Covid-19 controls and reign in “excessive policy steps” taken by local authorities – who are under pressure from Beijing to control the number of cases in their regions.

The protests – and the pledges to refine the policy implementation – come as the country faces its most significant surge of cases.

China identified 38,421 locally transmitted cases on Monday, according to the National Health Commission, ending six consecutive days of record infections.

Low vaccination rates among the elderly have long been cited by authorities as a reason why China must maintain tight controls over the virus. On Tuesday, officials also announced an “action plan” to boost vaccination rates among this high-risk group.

Raising that rate is seen as necessary to eventually reopening the country and relaxing tough measures.

As of November 28, around 90% of China’s total population had received two doses of a Covid-19 vaccination, but only roughly 66% of people over 80 had completed two doses, officials said Tuesday.

Reactions to the officials’ statements on Chinese social media suggested they had done little to assuage frustration and anger over the zero-Covid policy. On a state media livestream of the press conference, many users called for an end to Covid testing, lockdown and centralized quarantine.

“We’ve cooperated with you for three years, now it’s time to give our freedom back,” said one top comment on the livestream, which was run by state media on the Weibo social media platform.

“Can you stop filtering our comments? Listen to the people, the sky won’t fall,” wrote another, referring to censorship on the platform.

In a separate briefing on Tuesday, China’s Foreign Ministry defended the Covid-19 control measures and civil rights in the country – where authorities regularly use far-reaching surveillance and security capabilities to quash dissent.

“China is a country under the rule of law, Chinese citizens enjoy various legal rights and freedoms that are fully protected by law,” spokesperson Zhao Lijian said, when asked about the protests in a regular briefing on Tuesday. “At the same time, any rights and freedoms should be exercised within the framework of the law.”

Asian shares rallied on Tuesday on signs that authorities had managed to contain protests, and then on hopes the health commission would announce an easing of Covid restrictions.

Hong Kong’s benchmark Hang Seng Index ended the day more than 5% higher. In mainland China, the Shanghai Composite Index and the Shenzhen Component Index both finished more than 2% higher, while the CSI300 Index, which tracks the largest listed stocks, closed more than 3% higher.

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China lockdown protests pause as police flood city streets

HONG KONG (AP) — With police out in force, there was no word of additional protests against strict government anti-pandemic measures Tuesday in Beijing, as temperatures fell well below freezing. Shanghai, Nanjing and other cities where online calls to gather had been issued were also reportedly quiet.

Rallies against China’s unusually strict anti-virus measures spread to several cities over the weekend in the biggest show of opposition to the ruling Communist Party in decades. Authorities eased some regulations, apparently to try to quell public anger, but the government showed no sign of backing down on its larger coronavirus strategy, and analysts expect authorities to quickly silence the dissent.

Police were checking making random checks on phones at the People’s Square subway station in Shanghai Monday evening, an eyewitness said. The person declined to give his name out of fear of retribution, as he was en route to a planned protest near the station, which he did not find.

In Hong Kong Monday, about 50 students from mainland China sang at the Chinese University of Hong Kong and some lit candles in a show of support for those in mainland cities who demonstrated against restrictions that have confined millions to their homes. Hiding their faces to avoid official retaliation, the students chanted, “No PCR tests but freedom!” and “Oppose dictatorship, don’t be slaves!”

The gathering and a similar one elsewhere in Hong Kong were the biggest protests there in more than a year under rules imposed to crush a pro-democracy movement in the territory, which is Chinese but has a separate legal system from the mainland.

“I’ve wanted to speak up for a long time, but I did not get the chance to,” said James Cai, a 29-year-old from Shanghai who attended a Hong Kong protest and held up a piece of white paper, a symbol of defiance against the ruling party’s pervasive censorship. ”If people in the mainland can’t tolerate it anymore, then I cannot as well.”

It wasn’t clear how many people have been detained since the protests began in the mainland Friday, sparked by anger over the deaths of 10 people in a fire in the northwestern city of Urumqi. That prompted angry questions online about whether firefighters or victims trying to escape were blocked by locked doors or other anti-virus controls. Authorities denied that, but the incident became a target for public frustration about the controls.

Without mentioning the protests, the criticism of Xi or the fire, some local authorities eased restrictions Monday.

The city government of Beijing announced it would no longer set up gates to block access to apartment compounds where infections are found.

“Passages must remain clear for medical transportation, emergency escapes and rescues,” said Wang Daguang, a city official in charge of epidemic control, according to the official China News Service.

Guangzhou, a manufacturing and trade center that is the biggest hot spot in China’s latest wave of infections, announced some residents will no longer be required to undergo mass testing.

The U.S. Embassy advised citizens to prepare for all eventualities and said Ambassador Nicholas Burns and other American diplomats have “regularly raised our concerns on many of these issues directly.”

“We encourage all U.S. citizens to keep a 14-day supply of medications, bottled water, and food for yourself and any members of your household,” the Embassy said in a statement Monday.

In Washington, White House National Security Council spokesman John Kirby “obviously, there are people in China that — that have — have concerns about that,” referring to lockdowns.

“And they’re protesting that, and we believe they should be able to do that peacefully,” Kirby said at a Monday briefing.

Urumqi, where the fire occurred, and another city in the Xinjiang region in the northwest announced markets and other businesses in areas deemed at low risk of infection would reopen this week and public bus service would resume.

“Zero COVID,” which aims to isolate every infected person, has helped to keep China’s case numbers lower than those of the United States and other major countries. But tolerance for the measures has flagged as people in some areas have been confined at home for up to four months and say they lack reliable access to food and medical supplies.

The ruling party promised last month to reduce disruption by changing quarantine and other rules known as the “20 Guidelines.” But a spike in infections has prompted cities to tighten controls.

On Tuesday, the number of daily cases dipped slightly to 38,421 after setting new records over recent days. Of those, 34,860 were among people who showed no symptoms.

The ruling party newspaper People’s Daily called for its anti-virus strategy to be carried out effectively, indicating Xi’s government has no plans to change course.

“Facts have fully proved that each version of the prevention and control plan has withstood the test of practice,” a People’s Daily commentator wrote.

In Hong Kong, protesters at Chinese University put up posters that said, “Do Not Fear. Do Not Forget. Do Not Forgive,” and sang including “Do You Hear the People Sing?” from the musical “Les Miserables.” Most hid their faces behind blank white sheets of paper.

“I want to show my support,” said a 24-year-old mainland student who would identify herself only as G for fear of retaliation. “I care about things that I couldn’t get to know in the past.”

University security guards videotaped the event but there was no sign of police.

At an event in Central, a business district, about four dozen protesters held up blank sheets of paper and flowers in what they said was mourning for the fire victims in Urumqi and others who have died as a result of “zero COVID” policies.

Police cordoned off an area around protesters, who stood in small, separate groups to avoid violating pandemic rules that bar gatherings of more than 12 people. Police took identity details of participants but there were no arrests.

Hong Kong has tightened security controls and rolled back Western-style civil liberties since China launched a campaign in 2019 to crush a pro-democracy movement. The territory has its own anti-virus strategy that is separate from the mainland.

Hong Kong’s Chief Executive John Lee is a law-and-order hardliner who led the crackdown on protesters, including on university campuses.

Both the Hong Kong government and the State Council, China’s Cabinet, issued statements Monday pledging to uphold public order and the authority of the National Security Law, which gives authorities sweeping powers to charge demonstrators with crimes including sedition.

Protests also occurred over the weekend in Guangzhou near Hong Kong, Chengdu and Chongqing in the southwest, and Nanjing in the east, according to witnesses and video on social media. Guangzhou has seen earlier violent confrontations between police and residents protesting quarantines.

Most protesters have complained about excessive restrictions, but some turned their anger at Xi, China’s most powerful leader since at least the 1980s. In a video that was verified by The Associated Press, a crowd in Shanghai on Saturday chanted, “Xi Jinping! Step down! CCP! Step down!”

The British Broadcasting Corp. said one of its reporters was beaten, kicked, handcuffed and detained for several hours by Shanghai police but later released.

The BBC criticized what it said was Chinese authorities’ explanation that its reporter was detained to prevent him from contracting the coronavirus from the crowd. “We do not consider this a credible explanation,” the broadcaster said in a statement.

Chinese Ministry of Foreign Affairs spokesman Zhao Lijian said the BBC reporter failed to identify himself and “didn’t voluntarily present” his press credential.

“Foreign journalists need to consciously follow Chinese laws and regulations,” Zhao said.

Swiss broadcaster RTS said its correspondent and a cameraman were detained while doing a live broadcast but released a few minutes later. An AP journalist was detained but later released.

___

Associated Press writer Joe McDonald in Beijing contributed.

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Dow Jones Dives Nearly 500 Points On China Covid Protests, Fed Official Comments

Dow Jones futures were higher ahead of Tuesday’s open after the Dow Jones Industrial Average sold off nearly 500 points Monday. Investors will soon shift their attention to Fed Chair Jerome Powell’s Wednesday speech, while key inflation data is due out Thursday.




X



Monday’s stock market weakness was due to a combination of the spreading Covid-19 protests in major cities in China and St. Louis Federal Reserve President Jim Bullard’s comments on interest rates.

In a webcast interview with MarketWatch, Bullard responded to a question about how long he expects the Fed funds rate to stay in the 5% to 7% range, saying “I think we’ll have to stay there all during 2023 and into 2024.”

Bullard believes that markets are still underestimating the degree to which the Fed will need to keep policy tight in order to rein in inflation. Traders place a 72% chance of a 50 basis-point rate hike, down from 80% one week ago, in the central bank’s upcoming meeting, according to the CME’s FedWatch Tool.

Earnings reports this week include CrowdStrike (CRWD), Dollar General (DG) and Intuit (INTU). Also included is Dow Jones stock Salesforce (CRM), along with Snowflake (SNOW), Ulta Beauty (ULTA) and Workday (WDAY).

Stock Market Today

On Monday, the Dow Jones Industrial Average lost 1.45%, or 497 points, and the S&P 500 dropped 1.5%. The tech-heavy Nasdaq composite sold off 1.6%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down 1.5% and the SPDR S&P 500 (SPY) fell 1.6%.

Solar stocks sold off sharply Monday, as an analyst downgrade of First Solar (FSLR) impacted the rest of the industry. FSLR stock declined 3.4% after JPMorgan downgraded the stock from overweight to neutral due to the stock’s strong performance in recent weeks. Array Technologies (ARRY) and Shoals Technologies (SHLS) tumbled 7.1% and 6.4%, respectively. Array Technologies gave up a recent buy point, while SHLS stock fell back into buy range above a 28.57 buy point.

Electric vehicle giant Tesla (TSLA) traded a fraction higher Monday. Among Dow Jones stocks, Apple (AAPL) traded down 2.6% and Microsoft (MSFT) declined 2.3% in today’s stock market.

IPO Leader Array Technologies, IBD Leaderboard stock Arista Networks (ANET), Celsius (CELH) and Chubb (CB) — as well as Dow Jones names Boeing (BA), Caterpillar (CAT) and Chevron (CVX) — are among the top stocks to buy and watch.

Arista Networks is an IBD Leaderboard stock and was a recent IBD Stock Of The Day. Boeing is an IBD SwingTrader stock and was one of the four leaders featured in this week’s Stocks Near A Buy Zone column. Celsius was Monday’s IBD 50 Stocks To Watch pick.


4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally


Dow Jones Futures Today: Treasury Yields, Oil Prices

Ahead of Tuesday’s opening bell, Dow Jones futures rose 0.1%, while the S&P 500 gained 0.15%. The tech-heavy Nasdaq 100 futures moved up 0.2% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

The 10-year Treasury yield ticked higher to 3.7% Monday, holding near its recent lows. On Friday, the 10-year Treasury yield closed at 3.69%, its lowest close since Oct. 4. Meanwhile, U.S. oil prices reversed higher after touching their lowest level since December 2021. West Texas Intermediate futures traded around $77 a barrel.


IBD’s latest newsletter, MarketDiem, gives you actionable ideas for stocks, options and crypto right in your inbox.


What To Do In The Stock Market Rally

Now is an important time to read IBD’s The Big Picture column with the stock market trend back in a “confirmed uptrend.”

While it’s fine putting money to work in the current stock market, keep your exposure on the conservative side with small positions to start. Just because the stock market is in a confirmed uptrend doesn’t mean you have to be 100% invested. And don’t be afraid to take a 10% gain if you have it, given the choppy nature of the market.

(Check out IBD Stock Lists like the IBD 50 and Stocks Near A Buy Zone, for additional stock ideas.)


Five Dow Jones Stocks To Buy And Watch Now


Dow Jones Stocks To Buy And Watch: Boeing, Caterpillar, Chevron

Airplane maker Boeing dropped 3.7% Monday, falling back under a cup base’s 173.95 buy point. Look for a decisive retake of that entry before considering a purchase of Boeing shares.

Dow Jones member Caterpillar is close to retaking its cup base’s 238 buy point, according to IBD MarketSmith pattern recognition, and is less than 2% below the entry. CAT stock, with a heavy exposure to China, fell 1.4% Monday.

CAT stock boasts an impressive 96 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.

Energy giant Chevron fell 2.9% Monday, giving up its 182.50 buy point in a consolidation base.

Top Stocks To Buy And Watch: Array, Arista, Celsius, Chubb

Solar leader and IPO stock Array Technologies gave up its 22.40 buy point in a cup with handle during Monday’s tumble, according to IBD MarketSmith pattern recognition. Shares are about 3% below the entry. Further weakness would trigger the 7%-8% loss-cutting sell rule.

IBD Leaderboard stock Arista Networks remains in buy range above a choppy base’s 132.97 buy point despite Monday’s 1.5% loss.

Energy-drink maker Celsius reversed down 1.3% Monday, as the stock continues to form a cup base with a 118.29 buy point. Monday’s weakness could be the start of potential handle that would offer a lower entry.

Chubb is trading just below a cup-with-handle’s 216.10 buy point Monday after the session’s slight losses. The 5% buy area will top out at 226.91.


Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live


Tesla Stock

Tesla stock inched higher Monday, but remains sharply below its 50- and 200-day moving average lines. Shares are around 55% off their 52-week high.

Last week, the stock hit its lowest level since Nov. 23, 2020, reaching a new 52-week low price at 166.19.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares sold off 2.6% Monday, breaking down below their 50-day support level. Apple iPhone Pro production could fall short by 6 million units due to civil unrest and Covid restrictions in China, according to reports. The stock is more than 20% off its 52-week high.

Bloomberg reported that unrest at the Foxconn plant in Zhengzhou could trigger a 6-million-unit shortfall in 2022 iPhone Pro production. And that number could grow if Covid restrictions are extended a few more weeks, according to sources. The Zhengzhou factory manufactures the vast majority of iPhone 14 Pro and Pro Max smartphones.

Microsoft skidded 2.3% Monday, falling for a second straight session. Shares continue to hold above the 50-day line. The software giant remains about 30% off its 52-week high.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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Asian shares rise except Japan as markets eye China protests

TOKYO (AP) — Asian shares were mostly higher Tuesday as market jitters declined over protests in China set off by growing public anger over COVID-19 restrictions.

Benchmarks rose in early trading in Australia, South Korea and China, while shares fell in Japan. Oil prices fell.

Japanese government data released Tuesday showed that the unemployment rate for October was unchanged from September at 2.6%. Separately, data released by another ministry showed a slight increase in the number of available jobs per job-seeker at 1.35. The increase has continued for 10 months.

Hiring was up in anticipation of tourists returning in droves to Japan. Borders that have been basically closed during the coronavirus pandemic have reopened at a time when the declining value of the yen against the U.S. dollar and other currencies make Japan an attractive destination for tourists.

Japan’s Nikkei 225 lost 0.5% in early trading to 28,016.27. Australia’s S&P/ASX 200 inched up nearly 0.1% to 7,233.50. South Korea’s Kospi added 0.3% to 2,415.76. Hong Kong’s Hang Seng added 1.8% to 17,612.65, while the Shanghai Composite added 0.6% to 3,096.54.

Although market sentiment has been weighed down by recent demonstrations in China, some analysts noted calm could return in coming sessions. The world’s second largest economy has been stifled by a “zero COVID” policy which includes lockdowns that continually threaten the global supply chain.

“The absence of any clear escalation in protests could aid to bring some calm to markets,” said Yeap Jun Rong, market strategist at IG.

The unrest has stoked worries on Wall Street that if Chinese leader Xi Jinping cracks down further on dissidents there or expands the lockdowns, it could slow the Chinese economy, which would hurt oil prices and global economic growth, said Sam Stovall, chief investment strategist at CFRA.

“A lot of people are worried about what the fallout will be, and basically are using that as an excuse to take some recent profits,” he said.

More than 90% of the stocks in the S&P 500 closed in the red, with technology companies the biggest weights on the broader market. Apple, which has seen iPhone production hit hard by lockdowns in China, fell 2.6%.

Banks and industrial stocks also were among the biggest drags on the market. JPMorgan fell 1.7% and Boeing slid 3.7%.

Several casino operators gained ground as the Chinese gambling haven of Macao tentatively renewed their licenses. Las Vegas Sands rose 1.1% and Wynn Resorts gained 4.4%.

The fallout from the collapse of crypto exchange FTX continued. Cryptocurrency lender BlockFi is filing for Chapter 11 bankruptcy protection. Cryptocurrency exchange Coinbase Global fell 4% and the price of Bitcoin slipped 2.1%.

The S&P 500 fell 62.18 points, or 1.5%, to 3,963.94. The Dow dropped 497.57 points, or 1.4%, to 33,849.46. The tech-heavy Nasdaq lost 176.86 points, or 1.6%, to close at 11,049.50.

Wall Street is coming off of a holiday-shortened week that was relatively light on corporate news and economic data. Investors have a busier week ahead as they continue monitoring the hottest inflation in decades and its impact on consumers, business and monetary policy.

Anxiety remains high over the ability of the Federal Reserve to tame inflation by raising interest rates without going too far and causing a recession. The central bank’s benchmark rate currently stands at 3.75% to 4%, up from close to zero in March. It has warned it may have to ultimately raise rates to previously unanticipated levels to rein in high prices on everything from food to clothing.

Federal Reserve Chair Jerome Powell will speak at the Brookings Institution about the outlook for the U.S. economy and the labor market on Wednesday.

The Conference Board will release its consumer confidence index for November on Tuesday. That could shed more light on how consumers have been holding up amid high prices and how they plan on spending through the holiday shopping season and into 2023.

The government will release several reports about the labor market this week that could give Wall Street more insight into one of the strongest sectors of the economy. A report about job openings and labor turnover for October will be released on Wednesday, followed by a weekly unemployment claims report on Thursday. The closely watched monthly report on the job market will be released on Friday.

In energy trading, benchmark U.S. crude fell 17 cents to $77.07 a barrel. Brent crude, the international standard, lost 5 cents to $83.14 a barrel.

In currency trading, the U.S. dollar fell to 138.77 yen from 138.90 yen. The euro cost $1.0358, up from $1.0344.

____

AP Business Writers Damian J. Troise and Alex Veiga contributed to this report.

___

Yuri Kageyama is on Twitter at https://twitter.com/yurikageyama



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BBC journalist ‘beaten and kicked by the police’ as protests spread across China



CNN Business
 — 

Edward Lawrence, a journalist at the BBC, was arrested by police in Shanghai at the scene of protests on Sunday night, according to the BBC and as captured on what appears to be mobile phone footage of the arrest.

While he has since been released, a BBC spokesperson has expressed extreme concern about his treatment, saying he was “beaten and kicked by the police.”

Protests have erupted across China in a rare show of dissent against the ruling Communist Party, sparked by anger over the country’s increasingly costly zero-Covid policy.

Among the thousands of protesters, hundreds have even called for the removal of Chinese leader Xi Jinping, who for nearly three years has overseen a strategy of mass-testing, brute-force lockdowns, enforced quarantine and digital tracking that has come at a devastating human and economic cost.

Hear protesters in China call for Xi Jinping’s resignation

The BBC statement reads in full: “The BBC is extremely concerned about the treatment of our journalist Ed Lawrence, who was arrested and handcuffed while covering the protests in Shanghai. He was held for several hours before being released. During his arrest, he was beaten and kicked by the police. This happened while he was working as an accredited journalist.”

The statement continues, “It is very worrying that one of our journalists was attacked in this way whilst carrying out his duties. We have had no official explanation or apology from the Chinese authorities, beyond a claim by the officials who later released him that they had arrested him for his own good in case he caught Covid from the crowd. We do not consider this a credible explanation.”

At a regular press briefing Monday, China’s foreign ministry spokesperson Zhao Lijian acknowledged the detention of Lawrence, but claimed that he did not identify himself as a journalist before he was led away by police.

“China always welcomes foreign journalists to report in the country in accordance with the law and has provided lots of assistance,” Zhao said. “At the same time, foreign journalists should comply with Chinese regulations when they are reporting in China.”

Public protest is exceedingly rare in China, where the Communist Party has tightened its grip on all aspects of life, launched a sweeping crackdown on dissent, wiped out much of civil society and built a high-tech surveillance state.

At least two clips of the arrest were posted online by a Twitter user who says they witnessed the scene. One clip, filmed from above, shows at least four police officers standing over a handcuffed man whose face is obscured.

In a second clip of a man wearing the same clothing, Lawrence’s face is clearly identifiable, as police quickly led him away, and then shouts, “Call the consulate now.”

The witness who shared the videos said they saw the journalist get “sieged and dragged to the ground by several cops.”

It is unclear what happened in the lead-up to Lawrence’s arrest. The video available online begins with his arrest and does not show what happened prior.

In an interview with Sky News on Monday, the UK government called Lawrence’s arrest a “considerable concern.”

“There can be absolutely no excuse whatsoever for a journalist that was simply covering the process going on for being beaten by police,” said UK Business Secretary Grant Shapps.

Lawrence wasn’t the only foreign journalist detained by Chinese police on Sunday. Michael Peuker, China correspondent for Swiss broadcaster RTS, was also briefly detained while reporting live from a protest in Shanghai, RTS said.

“The tension is at its peak here. As a proof, I am now surrounded by three police officers, I will be taken to the police station after this live hit,” Peuker said on air. “I will leave you now and go to the police station,” he added.

Peuker said on Twitter that he was released moments later.

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Chinese Protests Put Xi Jinping in a Bind

President

Xi Jinping

faces a difficult choice between loosening China’s zero-tolerance Covid-19 policy or doubling down on restrictions that have locked down neighborhoods and stifled the country’s economy over the past three years.

Neither option is a good one for a regime focused on stability. Stock markets around the globe declined Monday as protests in China fueled worries among investors about the outlook for the world’s second-largest economy.

“Xi’s leadership is in a bind,” said

Yuen Yuen Ang,

a political scientist focused on China at the University of Michigan. “If they compromise and relax zero-Covid, they fear it will encourage mass protests. If they repress more, it will create wider and deeper grievances.”

Protesters across China have directly challenged the authority of the Chinese leader and the Communist Party in scenes unthinkable just a month ago, when Mr. Xi secured a third term in power.

In Shanghai over the weekend, protesters used call-and-response chanting to demand political change. In Beijing, crowds shouted “Freedom.” In other large cities, demonstrators marched holding blank sheets of paper—a swipe at government censorship.

China experts say the protests are unlikely to translate into a leadership change, in the near term at least. But Beijing’s dilemma is a tough one. It could lift restrictions and risk a large and potentially deadly wave of Covid infections that could undermine its credibility. Or it could crack down on the demonstrators and stick with a strict pandemic strategy that large parts of the population are clearly fed up with.

All three benchmark U.S. stock indexes closed more than 1% lower on Monday as investors worried that the protests would lead to more market volatility.

Widespread and public outpourings of political grievance have been extremely rare in a country where people have long consented to obey party authorities—as long as they deliver prosperity and allow citizens relative freedom in their personal lives.

People sang slogans and chanted for political change on a street in Shanghai on Sunday.



Photo:

hector retamal/Agence France-Presse/Getty Images

Police cars were parked on a Shanghai street on Monday, a day after rare demonstrations were held.



Photo:

hector retamal/Agence France-Presse/Getty Images

The protests put in stark relief the fraying of that social contract, showing that the climbing economic and social costs of China’s zero-Covid policies—coupled with an increasingly authoritarian regime’s zero-tolerance for dissent—have driven many to a kind of breaking point.

Demonstrations aren’t unusual in China, but they are largely over local grievances such as unpaid wages, land disputes or pollution. Since the Tiananmen Square protests in 1989, the party has made it a priority to prevent nationwide protests of a political nature.

The current wave of unrest started last week in the remote northwestern region of Xinjiang after 10 people died in a fire. Residents contended that Covid restrictions were partly to blame for delaying rescuers and contributing to the death toll. Officials said some barriers had to be moved but attributed the delay to parked cars in the way.

In the days since, the anger has spread across China. On Monday, authorities moved broadly to prevent any new protests, including dozens of uniformed and undercover police swarming the area around a highway bridge in Beijing where a lone protester hung a banner denouncing Mr. Xi in October. On Sunday, protesters had chanted lines from the banners.

In a rare show of defiance, crowds in China gathered for the third night as protests against Covid restrictions spread to Beijing, Shanghai and other cities. People held blank sheets of paper, symbolizing censorship, and demanded the Chinese president step down. Photo: Kevin Frayer/Getty Images

The unrest also underlined how anger about the Covid restrictions has united people from a range of social backgrounds—from migrant workers assembling iPhones in central China and residents of the remote region of Xinjiang to college students and middle-class urbanites in the nation’s biggest cities.

“The mass protests represent the biggest political crisis for Xi,” said

Minxin Pei,

editor of quarterly academic journal China Leadership Monitor. “It’s the first time in recent decades that protesters from a broad coalition of social groups have mounted a direct challenge to both the top leader himself and the party.”

Students staged a small protest Sunday at Tsinghua University in Beijing.



Photo:

Associated Press

Sudden reopening could lead to millions of intensive-care admissions in a country with fewer than four ICU beds per 100,000 people, and where many elderly still haven’t been fully vaccinated, according to public-health experts and official data. In addition, such a compromise would send a signal to the general public that mass protests are an effective means to win change, not something the government would want to encourage.

On the other hand, sticking to the zero-Covid policy could stir up even greater public resentment toward the leadership, with hard-to-gauge consequences.

The University of Michigan’s Ms. Ang and others say that the protests are unlikely to lead to any radical policy shift. Rather, one likely outcome is a mixture of selective relaxation of controls and harsh retaliation against select protesters.

Protesters and police stood on a street in Beijing on Monday.



Photo:

Kevin Frayer/Getty Images

“The danger is that if the leadership responds with repression, that could take China down a vicious cycle of control, leading to more grievances, to more control,” Ms. Ang said.

China’s Covid struggle underscores the limits of a political system where a lack of public debate has made it hard to adjust policies as other countries have done.

Many public-health experts say Beijing has missed the window to put in place a gradual exit plan out of zero-Covid. For the past three years, the government has spent significant resources on building ever more quarantine facilities and expanding mass-testing capabilities, while China’s progress on developing more effective vaccines has been slow.

Partly thanks to Beijing’s early successes at stemming infections, the Chinese population has developed little natural immunity. It only has access to homegrown vaccines that are less effective than some of the global alternatives.

A neighborhood in Beijing where access is restricted because of Covid regulations.



Photo:

Ng Han Guan/Associated Press

Notably, negotiations between China and the European Union over mRNA vaccine imports from the bloc fell through nearly two years ago, according to people familiar with the matter, after Beijing insisted that Europe recognize Chinese vaccines.

Beijing has also resisted approving any large-scale adoption of the mRNA vaccine co-developed by

Pfizer Inc.

and

BioNTech SE,

a decision healthcare and foreign-policy experts attribute partly to China’s strained relations with the U.S.

Mr. Xi and the party have faced public anger before, most notably during the early days of the pandemic when emotions swelled with the death from the virus of

Li Wenliang,

a young doctor in the city of Wuhan who was punished for trying to raise an early alarm. Ultimately, much of the nation’s anger then was directed at local authorities.

In the years since, Mr. Xi has identified himself closely with the zero-Covid strategy. That is now turning him into the natural target of protesters’ fury and has also made it nearly impossible to shift course without diminishing his standing. Notably, a People’s Daily article on Sunday continued to stress the importance of unwaveringly sticking to the existing Covid-control policy.

A Covid testing station in Shanghai on Monday. The government has built quarantine facilities and expanded mass-testing capabilities, while its development of more-effective Covid vaccines has been slow.



Photo:

Bloomberg News

As repeated lockdowns kept businesses closed and pushed up unemployment, some hoped there would be a shift away from the zero-Covid strategy once an October party conclave that handed Mr. Xi another five-year term was over.

As long as the top leader felt politically secure enough, those people argued, he would want to adjust the policy to help the economy—which still matters to the leadership despite its increased emphasis on ideology and party control.

Businesses and investors alike cheered when Beijing earlier this month unveiled plans to “optimize and adjust” the Covid policy, including shortened quarantine restrictions. Many market analysts viewed the step as the beginning of a gradual exit from zero-Covid.

However, as Covid cases surged again along with the colder season, local officials across the country reimposed strict restrictions for fear of putting their jobs in jeopardy. Keeping Covid under control has remained the overarching political priority for localities that are also struggling to reboot economic activity.

The contrast of China’s continued Covid lockdowns as the rest of the world has moved on became more obvious over the past week as many Chinese soccer fans have seen TV images of thousands of maskless spectators cheering in stadiums during the World Cup in Qatar.

Then came the deadly fire in Urumqi, the capital of Xinjiang, where residents had struggled with lockdowns of more than 100 days, prompting protesters across the country to defy the risks of expressing dissent to seek change.

People lighted candles on Sunday in Beijing for victims of a deadly fire in the northwestern city of Urumqi, the capital of Xinjiang.



Photo:

Bloomberg News

Write to Lingling Wei at Lingling.Wei@wsj.com

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Dow drops more than 100 points as Chinese Covid protests dampen market sentiment

Stocks fell Monday as social unrest from China’s prolonged Covid restrictions weighed on markets, sending oil prices lower after Wall Street notched gains during the Thanksgiving holiday-shortened week.

The Dow Jones Industrial Average fell more than 100 points, or 0.3%, at open. The S&P 500 and Nasdaq Composite each lost 0.5%.

Over the weekend, demonstrations broke out in mainland China as people vented their frustrations with Beijing’s zero-Covid policy. Local governments tightened Covid controls as cases surged, even though earlier this month Beijing adjusted some policies that suggested the world’s second-biggest economy was on its way to reopening.

The developments weighed on sentiment in Asia trading, with oil futures hovering around new 2022 lows around demand concerns. Shares of companies with big production facilities in the country led premarket losses.  Shares of Apple lost 1.5% and Tesla declined 0.9%.

“You cannot rewire supply chain overnight,” said Mohamed El-Erian, chief economic advisor at Allianz and president of Queens’ College. “So what does it mean for those companies? It means supply uncertainty.”

The moves come after all three major U.S. indexes ended last week higher, even with the shortened trading time due to the Thanksgiving holiday. The Dow rose 1.78%, and the S&P 500 increased 1.53% during the short week. The tech-heavy Nasdaq lagged the other two indexes but was still up 0.72% in the same timeframe.

Stocks were lifted during the week by comments from Federal Reserve officials signaling that the central bank would step down its aggressive rate hike path as inflation cools. Minutes from the Fed’s November meeting confirmed the likely shift in policy.

“A substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate,” the minutes stated.

Investors will be watching this week more earnings reports and a slew of economic releases that will give further information on the state of the consumer and the U.S. economy. Intuit, Salesforce and Five Below are among companies scheduled to report earnings. Personal consumption data and the labor report for November will also be released.

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Oil prices erase 2022 gains as China’s protests spark demand worries

  • WTI hits lowest since Dec 2021, Brent at lowest since Jan 2022
  • Clashes in Shanghai as COVID protests flare across China
  • Investors focus on next OPEC+ meeting on Dec 4

Nov 28 (Reuters) – Oil prices fell close to their lowest this year on Monday as street protests against strict COVID-19 curbs in China, the world’s biggest crude importer, stoked concern over the outlook for fuel demand.

Brent crude dropped by $2.67, or 3.1%, to trade at $80.96 a barrel at 1330 GMT, having dived more than 3% to $80.61 earlier in the session for its lowest since Jan. 4.

U.S. West Texas Intermediate (WTI) crude slid $2.09, or 2.7%, to $74.19 after touching its lowest since Dec. 22 last year at $73.60.

Both benchmarks, which hit 10-month lows last week, have posted three consecutive weekly declines.

Reuters Graphics Reuters Graphics

“On top of growing concerns about weaker fuel demand in China due to a surge in COVID-19 cases, political uncertainty caused by rare protests over the government’s stringent COVID restrictions in Shanghai prompted selling,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

Markets appeared volatile ahead of an OPEC+ meeting this weekend and a looming G7 price cap on Russian oil.

China has stuck with President Xi Jinping’s zero-COVID policy even as much of the world has lifted most restrictions.

Hundreds of demonstrators and police clashed in Shanghai on Sunday night as protests over the restrictions flared for a third day and spread to several cities.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, will meet on Dec. 4. In October OPEC+ agreed to reduce its output target by 2 million barrels per day through 2023.

Meanwhile, Group of Seven (G7) and European Union diplomats have been discussing a price cap on Russian oil of between $65 and $70 a barrel, with the aim of limiting revenue to fund Moscow’s military offensive in Ukraine without disrupting global oil markets.

However, EU governments were split on the level at which to cap Russian oil prices, with the impact being potentially muted.

“Talks will continue on a price cap but it seems it won’t be as strict as first thought, to the point that it may be borderline pointless,” said Craig Erlam, senior markets analyst at OANDA

“The threat to Russian output from a $70 cap, for example, is minimal given it’s selling around those levels already.”

The price cap is due to come into effect on Dec. 5 when an EU ban on Russian crude also takes effect.

Reporting by Noah Browning
Additional reporting by Yuka Obayashi in Tokyo and Mohi Narayan in New Delhi
Editing by Kirsten Donovan and David Goodman

Our Standards: The Thomson Reuters Trust Principles.

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Global stocks slip after China’s zero-Covid protests

Global stocks and oil prices slipped on Monday after protests in China against the government’s Covid-19 policies dragged on sentiment and added to uncertainty about the outlook of the world’s second-largest economy.

In Hong Kong, the Hang Seng China Enterprises index dropped as much as 4.5 per cent before pulling back to shed 1.6 per cent. The decline on China’s CSI 300 index of Shanghai- and Shenzhen-listed shares was as great as 2.8 per cent before it was trimmed to just over 1 per cent.

Demonstrations broke out in Beijing, Shanghai and other cities over the weekend against government-induced pandemic restrictions. Discontent has intensified since a fire in the city of Urumqi killed 10 people last week, prompting vigils across China as authorities denied allegations that coronavirus restrictions had hampered rescue efforts and prevented residents from escaping the blaze.

Europe’s regional Stoxx 600 slid 0.9 per cent in midday trading while London’s FTSE 100 dropped 0.3 per cent. The S&P 500 was set to shed 0.9 per cent, as suggested by futures pinned to the index, when trading begins on Wall Street.

Oil dropped sharply, with Brent crude, the international benchmark, down nearly 3 per cent to trade at $81.18 a barrel, and US marker West Texas Intermediate shedding 2 per cent to hit $74.19.

Growing unrest in China has hit investors with a “reality check”, said Emmanuel Cau, head of European equity strategy at Barclays.

“China reopening hope was part of the bullish end of year narrative,” Cau added. “Investors now realise that whatever the direction of travel is on zero-Covid, it won’t be a smooth process.”

Traders said the protests added to uncertainty about China as a rise in coronavirus infections has increased pressure on local officials to step up enforcement of President Xi Jinping’s strict zero-Covid policy.

“Investor confidence has already been battered this year, and it’s difficult to comprehend what the direction of the market will be next,” said Louis Tse, managing director of Hong Kong-based brokerage Wealthy Securities.

Tse said investors were concerned about a lack of additional support for China’s economy as infections soared to records and undercut a rally that had pushed the Hang Seng China Enterprises index up more than 17 per cent this month.

The use of blank paper as a symbol of protest against censorship caused trouble for some listed Chinese companies. The Shanghai-listed shares of Shanghai M&G Stationery, a paper supplier, fell as much as 3.1 per cent on Monday. It clarified in an exchange filing that a statement circulating on social media, which claimed the company had halted sales of A4 paper “to safeguard national security”, was a forgery.

The muddled outlook for China’s economy weighed on the renminbi. The Chinese currency fell as much as 1.1 per cent to Rmb7.24 against the dollar.

The US dollar index traded in a basket of its international peers was steady, benefiting in part from the “flare-up in China risks”, said Lee Hardman, a currency analyst at MUFG.

Martin Petch, vice-president at Moody’s Investors Service, said the protests “have the potential to be credit negative if they are sustained and produce a more forceful response by the authorities”.

“Though this is not our base case,” he added, “this would lead to an increased level of uncertainty over the degree of political risk in China, spilling over into damaged confidence and hence consumption in an already weakened economy.”

The unrest weighed on equities elsewhere in Asia, with Japan’s benchmark Topix down 0.7 per cent, while South Korea’s Kospi was down 1.2 per cent.

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Live news updates: China’s official media stress zero-Covid policy amid protests

China’s most important state and party media reiterated the country’s commitment to its strict zero-Covid policy on Monday following a weekend in which rare protests burst out in cities across the country.

The People’s Daily, the official mouthpiece of the Chinese Communist party, published a front-page editorial, under the authorship of Zhong Yin, a pen name seen as indicating the party line on Covid policy. The article called for “improving the effectiveness of anti-epidemic work” and hailed the recently announced “20 measures” aimed at a partial easing of the zero-Covid policy.

It added that eradicating outbreaks early was crucial to the success of the approach, underlining an important tenet of the zero-Covid approach.

“Timely detection and control of infected persons in the society, accurate identification and control of close contacts, and timely and accurate delineation and announcement of risk areas are the keys to seize the opportunity for epidemic prevention and control,” People’s Daily wrote.

Earlier this month, the government eased quarantine requirements for close contacts and international travellers, in the first marginal relaxation of Xi Jinping’s zero-Covid strategy since the policy was reaffirmed at the Communist party congress in October.

But spiralling caseloads, which have continued to rise after reaching record levels last week, have triggered a wave of lockdowns and curbs across the country.

Xinhua, the official government news agency, on Monday published an editorial that called on the country to stick “unswervingly” to the principle of “putting the people’s lives first”, and prevent “importing [the virus] from overseas” and prevent its “rebounding domestically”, two phrases associated with Beijing’s zero-Covid strategy.

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