NT President's observations
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April 8, 2020, Issue 274 NT secretariat (08) 89270061, GPO BOX 2769, Darwin NT 0801
NT President’s observations
Western markets have soared with the arrival of helicopter money in the United Sates. It’s a
modern cargo-cult where printing presses are cranked up and money drops from the sky, solving all
problems and underpinning a massive rally in the US Market indexes.
Those who join this rally will at some stage pause and decide just how newly printed money
helps those in hospital without access to ventilators and other medical equipment. There is a need for
fiscal support for an economy moving into hibernation. The time for money for recovery should wait
the crises passes and recovery is possible.
China is further along the path to recovery, so its economic recovery response is different.
This influences the nature of export business and investment opportunities.
Chinese local governments have distributed about 4 billion RMB of digital coupons in the past
few days. Digital coupons are used to stimulate personal consumption in catering, online shopping,
sports and tourism. Coupons allow Government to target spending and stimulus at precise economic
pain points.
The US is giving $1,200 per adult below a certain income threshold. This will be dispersed
across the economy and not necessarily to where it is needed most. Netflix will see an increase in
subscriptions, but the struggling neighbourhood restaurant may get little.
Coupons are targeted and are particularly effective in the China context because it prevents
stimulus cash from being saved. China currently saves around 45% of its GDP. This high rate of
savings assisted lock-down survival. Instead of reaching for their credit cards to pay for goods and
services and on-line shopping, Chinese citizens drew down on their savings.
US citizens will increasingly need to expand their credit lines as US household’s savings are
very small. By some estimates its just over a single paycheque for most families.
There is some speculation that the multiplier effect of digital coupons is almost twice that of
cash. Its suggested that for every digital RMB coupon distributed, 15 RMB's worth of real
consumption follows. If this is an accurate calculation, then we can expect to see the Chinese
economy rebound quite quickly. Already some of the PMI figures are suggesting this is taking place.
However, the lofty aims of around 6% annual growth are unlikely to be achieved this year with growth
estimates ranging from a Maoist period 1% to a more optimistic 4%.
Truth is, nobody knows because we have not seen this type of pandemic in modern history,
let alone in this modern economic environment. Chinas pace and style of economic recovery may
provide little guidance for Western economies simply because of the high level of domestic savings.
This is not replicated anywhere in the Western world so demands on credit provision will be
substantial.
However, the target areas for coupon expenditure provide hope for foreign exporters who
served the catering market with meat, vegetables and seafood. Delivery into China remains a
challenge, but targeted coupons show demand that needs supply. In addition to doing everything you
can to ensure that your products can still get to your customers, you should keep them informed
about your situation. Exporters who are able to shift products or services to an on-line delivery model
will find both more opportunity and more competition. Getting the digital strategy right, including a
strategy that is compatible with WeChat payment platforms will provide a lifeline for many businesses.
Daryl Guppy,
President, NT Branch,
Newsletter editor
WE'RE HERE TO HELP YOU ...
It's during times such as these when membership organisations like ACBC are of indispensable value.
We provide our members with unique Australia China insights, networks and online platforms to help
you and your business on the path to recovery and success.
ACBC Members are part of a community of Northern Territory business professionals working in and
with China. We've been helping build Australia's bilateral relationship and trade with China since 1973
and look forward to helping you take the journey to recovery once the current crisis is under control.
China is already getting 'back to business' and we therefore all need to prepare, identify and take
advantage of opportunities as soon as they arise.
If you're reading this and are not currently an ACBC Member, get in touch with us at
acbcnt@acbc.com.au We'll be pleased to give you further information and welcome you into our
vibrant networks.
Stay Safe. Stay Healthy.
TRADE UPDATE FROM THE FREIGHT AND TRADE ALLIANCE
Our sources from China have provided us with the following updates
• China has started to release the restrictions in Hubei province step by step as mentioned last
week, the city should be back to normal from April 8. Currently, China have over 771 imported cases,
and local new cases in the last week is less than 20.
• According to Beijing Daily, March 31, Chinese government are starting to monitor all back to
work companies and factories to reduce the possibility of a second wave. Most of the big cities are
keeping entertainment facilities either closed or in some cases partially back to normal business.
• According to a study at the RENMIN UNIVERSITY of CHINA, the GDP increase rate for
China will be 3%-4% in 2020, due to the impact of the coronavirus. It will trigger the possibility of a
Global Economy downturn.
• CCTV news March 29, the productiveness of the majority of eastern and southern provinces
is back to around 90%. Some big cities are close to 100%, such as Shanghai, Guangzhou, Beijing
etc.
• Normal trains services have started back in Hubei province, so the human resources from
Hubei province are going back to other provinces to fill the demands (Xinhua news March 30).
However, the Health checks and control policy are still being implemented.
• According to chinaports.org March 27, from March 9 thru 15 the average throughput
increased over 10% for all the ports in China compared to the previous week. From March 16 thru 22
most of the ports kept the same numbers. From March 16 Wuhan port is also back to operating.
• However, according to many sources the rebounding of Chinese exports at the end of March
and April is not as strong as expected, due to Global pandemic situation.
• Maritime Strategies International (MSI), on March 30, also warned the whole forwarding
industry that at the beginning of May there will be a big downturn again, as Europe and USA are
locking down and stopping or slowing down their overseas purchases.
From Brett Charlton, General Manager - Tasmania at Agility
CHINA DIM SUM BUSINESS NOTES
Small bites of business notes
CHINA DONATES MEDICAL EQUIPMENT
It is heartfelt that China is doing its best to help as many countries as possible. All the
factories manufacturing PPE are running 24/7 to meet the demands. I was disappointed that some
countries have rejected the aid upon arrival citing the items were not CE approved or failing to meet
their country standards. Many of these Chinese factories were spurned up during the early days when
China desperately needed the PPE for the whole country. There was no time to apply CE or FDA
certificates. The PPE was used with no problem in China. I am dismayed the bureaucracy of those
countries where lives were treated less important. They should have tested the PPE to see whether
they are safe to use instead of rejecting them because they do not have the CE and FDA certificates.
These customs officials have deprived their fellow countrymen the chance of avoiding the infection.
Thus, a disposable mask which the nurse has been continuously using for a week is safer than a new
mask with no CE certificate!
From Calipe Chong
The same standard for rejection is not applied to masks etc hastily produced by re-tooled factories in
Australia. Editor
ACBC ADVERT NOMINATED FOR AWARD
I’m thrilled to let you know that our National Ad Campaign We Stand with China has been
included in the 2020 GOV Design Awards Selection. All projects in the selection go through to the
jury. Winners will be announced on 21 May 2020 and the Awards Presentation will follow on 30 June
2020. You can read the nomination application here:
https://drivenxdesign.com/GOV20/project.asp?ID=19385
From Helen Sawczak, ACBC national CEO
FOREIGN INTERFERENCE
A $200 million contract between Western Australia's Public Transport Authority (PTA) and
Chinese technology giant Huawei has collapsed, due to trade restrictions imposed by the United
States. The consortium of Huawei Australia and UGL (HUGL) won the tender in July 2018 to upgrade
the radio communications system for Perth's urban rail network.
This is and example of direct foreign interference in Australian politics.
RECIPROCITY IN COVERAGE
Western media rightly condemned Chinas action to silence the Wuhan doctors who first
raised concerns about a strange pneumonia that was later identified as COVID. The Western media
condemnation has been loud and persistent..... and unbalanced.
Western media is far more restrained in its criticism of the sacking of US Navy captain Brett
Crozier, captain of the USS Theodore Roosevelt who raised concerns about the health and safety of
his 5,000 crew. He was unceremoniously sacked by the Navy with the support of President Trump.
Mistakes, and sometimes grievous mistakes, have been made by all in handling this COVID
outbreak. Outage, where warranted, should be directed without fear or favour by any media that
claims to be free and unbiased.
ACBC NT WEBINAR LINKS-
Go to http://www.acbc.com.au/upcoming-events for details and
registration
National ACBC is developing a range of webinar delivery options for briefings. This gives NT
members an opportunity to join briefing events whereas before we could not because they were held
in Melbourne or Sydney. We will try to keep members informed in advance of webinars, but where
short notice is given to us then we will update members via email.
9 April | Briefing: COVID-19 and Tourism
16 April | China's Wellness Market
21 April | How to create Webinars worth watching
22 April | Opportunities in China post-COVID-19
14 April | You're Still a Professional working from home
ACBC MEMBER SURVEY – ESSENTIAL TO COMPLETE
To help us better deliver services to members, both in these challenging times, and in the
future, we ask all members to complete this 5 minute survey. This will help ACBC nationally and
ACBC NT to better structure its services. The survey also includes some COVID questions and these
responses will help shape ACBC NT policy recommendations to Government. Please go to
https://www.surveymonkey.com/r/VPQRC27 and complete this survey.
Australian Cyber Security Centre (ACSC)
The ACSC is providing information on cyber security relating to
COVID-19 for businesses and individuals.
As more staff may work from home, and the use of remote access technology increases,
cybercriminals may attempt to take advantage of the changed situation. The ACSC encourages
Australians to remain vigilant and make sure their cyber security practices are sound.
See the latest COVID-19 Threat Advice (also attached) that details COVID19 themed threats and
advice to reduce the risk of being impacted. Follow alerts and advice on COVID-19 from the ACSC at
www.cyber.gov.au/tags/covid-19.
Cyber Security Essentials when preparing for Covid-19 and working from home
Practising good cyber security practices during the impact of the COVID-19 pandemic is the best way
to address the cyber threat and help protect your business.
The ACSC Essentials for preparing for Covid-19 details strategies to protect your business, including
advice on remote access, updating/patching systems, securing devices and multi-factor
authentication.
As more people work from home, collaboration tools can be essential to staying connected. See the
recent advice from the ACSC on web conferencing security
Cyber Security Step by Step Guides – individuals and business
The ACSC Small Business Cyber Security Guide provides specific information to help small
businesses protect themselves from the most common cyber security incidents.
The ACSC also publish Step-by-Step guides to help you turn on security settings like multi-factor
authentication and automatic updates on different online services, like email and Facebook, and
different operating systems. These guides are useful to both individuals and businesses.
Visit www.becybersmart.nt.gov.au for advice on protecting yourself and your business when
online.
COVID-19 Scam Messages Targeting Australians
The ACSC is aware of a COVID-19 themed scam being distributed via text message. Detailed advice
about this scam is available from the Stay Smart Online alert service.
For this particular scam, the text messages appear to come from ‘GOV’ as the sender and include a
link to find out when to ‘get tested in your geographical area’ for COVID-19.
The link in these text messages is not legitimate, and if clicked on, may install malicious software on
your device, designed to steal a victim’s banking details. Do not click the link.
Find out more about protecting against phishing – or fake messages sent by email, SMS, instant
messaging and social media platforms, designed to steal your information.
See Stay Smart Online advice and alerts on their website and Facebook.
MEDIA CALLOUTS – NOT-SO-ACCURATE MEDIA REPORTING
You will have seen the story headed DODGY TEST KITS SEIZED BY BORDER
OFFICIALS. With a heading like this its easy to jump to just one conclusion and it’s a wrong
conclusion. Closer reading of the story reveals the details that water down the message in the
headline.
The core problem – the kits had not yet received approval from the Australian Therapeutic
Goods Administration (TGA) although the kits have been used widely in China, Hong Kong,
Singapore and Taiwan (countries with outstanding success in containing the COVID spread) . This
lack of Australian TGA approval does not necessarily mean the equipment is faulty, or dodgy. It
simply means its doesn’t have the relevant Australian TGA stamp of approval and this is what should
be reflected in the headline.
That clarification is mentioned well below the headline and it requires careful reading. We
have highlighted the sections that show the headline is misleading.
Hundreds of COVID-19 testing kits ordered from China and Hong Kong have been seized at
the border amid concerns they COULD pose a serious risk to the public.
The Therapeutic Goods Administration has DEEMED the kits “UNAPPROVED MEDICAL
DEVICES” and the Federal Government warned against ordering them.
Home Affairs Minister Peter Dutton said the kits COULD present a serious risk to public
health and undermine health professionals.
The TGA has also confirmed the importers DID NOT HAVE APPROVAL to import the kits.
Further to this discussion we add these comments from Peter Agnew, Chief Executive Officer
at MPK International, Illinios.
“I try never to criticize in public what I have witnessed over the last twenty+ years of dealing in
sourcing relationships between Europe, US and China. These recent days, I am sick and tired of
listening to and reading about the bashing of China for sub standard PPE equipment being received
in countries including my own home of Ireland. It is bad enough listening to unverified criticisms from
experienced individuals involved in such projects, but it is downright ridiculous what I have seen from
people in the public spotlight who have no idea what they are talking about and this in turn is filtering
down to the public who are now on social media calling for boycott of China after the emergency of
COVID-19 is finished.
These are not normal times, and there is an element of the "Wild West" trying to procure PPE
from China. Even the most experienced of individuals involved are struggling to keep control. This
"Wild West" is NOT being caused by China Government, it is being caused by the frenzy of
unprepared countries using vastly inexperienced buyers who are being taken advantage of primarily
by middle-men who are not even Chinese themselves.”
From Daryl Guppy compiled from multiple sources.
THE CHANGING FACE OF (US) ECOMMERCE
This is an American list of changes, but its useful because it suggests some changes in the
way ecommerce is used. Some of these changes will be permanent, whilst others – like bread
makers – are probably transient. It’s a useful starting point for developing your eCommerce strategy.
The full listing, including the fastest decline categories is available from
https://www.stackline.com/news/top-100-gaining-top-100-declining-e-commerce-categories-march-
2020
TWO WAY SUPPORT This letter was received in the last few days. Dear Mr. Daryl Guppy: In the face of the sudden outbreak of COVID-19 around the world, we are deeply distresses. Mr. long Xiaohua sent a letter of sympathy to express his sympathy. If you have any needs, you can contact me, and we are willing to assist. We will continue to strengthen pragmatic exchanges and promote economic and trade cooperation between each other. April 1,2020
FESTIVAL OF AUSTRALIA IN CHINA
We are writing this update a little tentatively, as our previous estimates around the timing of
FOA did not turn out to be very accurate! The last few weeks have seen the rapid global expansion
of COVID-19 - as a result, many key international events have been cancelled or suspended,
including the AFL season and 2020 Olympics. As the rest of world goes into lock-down, life is slowly
returning to normal in China, with Wuhan’s travel restrictions to be lifted on 8 April. This gives us
some hope and perspective – we are keeping a clear eye to the future, and using this time to develop
our return-to-market strategies.
Although the world is currently full of uncertainties, we are glad to assure you again that the
Festival of Australia 2020 will go ahead, of course with one eye on developments in the coming
months. Thank you for the thoughts and suggestions to date – they’ve helped in sharpening our
decision on the new date. Given the Festival is predominantly a collection of partner-driven activities
being brought under one unified digital campaign to showcase Australian capability across multiple
sectors, at this stage – subject to Government approval – would likely be around Sep-Oct 2020. This
is in line with major events, such as SIAL, Dairy Expo and Wine Australia’s roadshow timelines, and
could potentially conclude with CIIE 2020 activities, which we anticipate will involve significant
Australian business participation based on the feedback and enquiries we are getting from the
business community so far. We will keep you updated as we continue to advance this physical
program and work with any unforeseen developments.
To test and prepare the China market and drive demand for Australia products and services, in
the lead-up to the Festival (from Jun-Jul 2020) Austrade is planning to run a range of digital
activities – including industry webinars, video blogs, industry capability reports, and media snippets –
to showcase our priority sectors including, health; F&B; education; services and technology;
resources; and agribusiness. We are keen to amplify your industry experts, content and marketing
materials through this exercise. This will enable us to test existing and new channels after the covid-
19 shockwave to ensure maximum impact of Festival activities while also providing partners,
stakeholders, and consumers with desired content on Australian capability and future opportunities
during this time. With this in mind, we would like to invite you to reach out to our sector leads to
discuss how your activities may be included in this exercise:
- Media and Communication: Paul Sanda (Paul.Sanda@austrade.gov.au)
- Education: Rhett Miller (Rhett.Miller@austrade.gov.au)
- Health: Time White (Tim.White@austrade.gov.au)
- F&B: Esther Sun (Esther.Sun@austrade.gov.au)
- Services & Technology: Dane Richmond (Dane.Richmond@austrade.gov.au)
- Resources and Infrastructure: Gareth Simpson (Gareth.Simpson@austrade.gov.au)
- Agribusiness: Liu Bing (Liu.Bing@austrade.gov.au)
Over the coming weeks we will continue to develop our plan for this digital campaign and share
updates with you as it progresses. Paul Cheyne who is our Lead for FOA will resume ownership of
this communication going forward.
UNCOMFORTABLE ANTI-CHINA NARRATIVES
The idea that Australia China relations will soon return to normal is dispelled by headlines like
‘Post-COVID, we must radically rethink our relationship with China’ from leading commentators like
Peta Credlin and friends on Fox news and in the Murdoch owned media. Resuming business may be
more difficult than we imagine so its useful to understand how these narratives are developing.
The notes below, SPURNING CHINAS GIFT OF EXPERIENCE were prepared at the
request of the Renmin University RDCY economic research unit and also published on the CGTN
digital website, provide an analysis of these growing media and political narratives.
Following 2008 China gifted the world an economic recovery from the Global Financial Crisis
by embarking on a massive infrastructure spend. Chinese capital was eagerly sought to keep many
Western companies afloat. Some countries have never forgiven China for taking this lead.
Today China is gifting its experience with COVID-19, its knowledge, its medical supplies and
its skilled staff to those who need it. This includes hospital staff in Italy and medical supplies to the
UK.
For some this hand of global co-operation is treated with the same type of suspicion that
followed the GFC recovery. This gives rise to three distinct narratives, none of which are favourable
to China.The first narrative blames China for the COVID-19 outbreak. This story is filled with social
media distortions which have been accepted as truthful by some world leaders. China’s rapid sharing
of the COVID-19 genome and other information is conveniently forgotten.
This story also implies that China is somehow responsible for the inability of Western
governments to plan ahead for an effective health response. Unlike China, they had several months
warning, but COVID-19 appears to have caught Italy, Spain and the United States by surprise.
The second narrative imagines a nefarious motivation behind China’s sharing of staff, medical
supplies and experience. It is painted as a deliberate extension of China’s soft power and designed to
enhance China’s position as a global leader, particularly at the expense of the United States.
Without a doubt, China’s soft power will be enhanced by its high level of co-operation with
WHO and its generosity in delivering aid, not just to Europe, but to third world countries that have
inadequate health systems. This stands in stark contrast to the response from the United States which
remains active in continuing sanctions which halt the supply of medical aid and with interfering in
countries such as Venezuela to achieve political, not health, outcomes.
Whether soft power expansion is the primary motivation of these Chinese measures is a
moot point, but it is also clear no country ever gives aid as straight charity.
There is nothing to stop the United States extending the same helping hand but President
Trump’s policy of America First is a significant factor in precluding offers of assistance.
Already this narrative has metastasised into a more concerning impact with some countries
declaring Chinese investment capital is not welcome to come to the rescue of failing companies. The
most explicit of these declarations has been made by Australia, frightened of a repeat of the post-
GFC China investment boom which powered the Australian economy for a decade. Despite this fear,
China with just 1.8% of foreign investment in Australia in 2018, is the ninth largest foreign investor in
Australia, coming after the US, UK, Belgium, Japan and Singapore.
The increasingly widespread adoption of this narrative presages a change in global
investment flows post-COVID-19 and this will impact on the speed and efficiency of economic
recovery. Companies will require recapitalisation and the choice is either genuine new capital
investment, or the so-called helicopter money created by simply speeding up the printing presses.
The third narrative rests on the idea that the world has become too dependent upon China.
It’s claimed the contraction in global trade due to country lockdowns is evidence of this over-
dependence on China. This most often relates to the supply of medical equipment and drugs – items
which 3M, GlaxoSmithKline and other Western companies were more than happy to outsource to
China and then resell at significantly higher prices in their home markets.
True or false, the potential outcome remains the same. Post COVID-19 will see pressure to
shift away from made-in-China imports and their replacement with more expensive substitute
products. Whilst appearing to assist economic recovery with the development of ‘new’ businesses, the
result will be more expensive products that will hamper the speed of recovery.
For decades Western economies have benefited from the deflationary impact of cheaper
imported goods from China. The time when this was restricted to handyman tools has been
superseded by high end products like medical equipment. The deflationary role in improving business
efficiency and productivity cannot be underestimated.
Residents in Western countries are moving into extended periods of self-isolation and this has
resulted in national isolation as borders are closed and connections severed with the world. Restoring
these connections, both logistical and social, will be difficult as the long supressed suspicion of
‘foreigners’ has been given apparent legitimacy by contagion fears.
It is foolish to imagine that the world will emerge from this fearful economic hibernation much
the same as it was prior to the pandemic. The challenge is to acknowledge the changes and adapt
global business models accordingly. Just what shape these will take is unknown but, in some
quarters, the anti-Globalisation narrative is morphing into an anti-China narrative.
Business, and business organisations have an important role to play in countering this
developing division. Cross border business groups like the Silk Road Chamber of International
Commerce are more important than ever because they connect business interests which, in turn,
must guide the decisions taken by political leaders. Global prosperity rests upon open borders, free
trade and a commitment to global co-operation despite any inclination to do otherwise. This requires
improved engagement with China, not disengagement.
The pandemic is an opportunity for global leaders to show their true colours; first in the
protection of their citizens in this health crisis; second in the way they deliver humanitarian support
beyond their borders by sharing knowledge; and third in the way they co-operate to shape the global
economic recovery.
By Daryl GuppyBEIJING AFTER COVID
Spring has arrived in Beijing and wherever you can gather for any reason, guards and signage ensure
that you are not too close to each other. It is a strange feeling, a China that is slowly returning to a
new kind of reality and a world at large facing challenges previously unheard of. We are all concerned
for families and friends back home.
China has now probably finalized its method for managing the risk of returning infections that comes
with entries into the country. Flights that have Beijing as their final destination will make an earlier
landing at one of 12 designated airports in China. Passengers are to exit the plane, undergo a health
examination where suspected cases are hospitalized for treatment. The others will fly to Beijing where
they will undergo a two-week quarantine at selected hotels, at their own expense!
I have been in contact with several people who undergo quarantine and how they manage it depends
on several factors. You should be well prepared for what will happen and ensure that you have
activities to deal with. Two weeks trapped in a room can be more difficult than you think.
Its important to remember that entering China will be a challenge for several months to come.
From Lars-Åke Severin , Founder & CEO PSU China. Chairman of the Swedish Chamber of
Commerce in China
RENMIN UNIVERSITY STUDY OPPORTUNITIES
Warm greetings from Renmin University of China. Today I am writing about our new established Silk
Road School since 2018 in Suzhou, Jiangsu Province, jointly organized by Chongyang Institute for
Financial Studies (RDCY), School of International Studies, and Suzhou Campus of Renmin University
of China. It has enrolled 106 students from 49 countries during last two years with the support of all
parties. They followed the courses of Master of Contemporary Chinese Studies (MCCS) at Silk Road
School in Suzhou, a two-year English master’s program. And it is expected to enrol around 50-80
students in September 2020.
Now we are working on this 2020 Master of Contemporary Chinese Studies (MCCS) at Silk
Road School, Renmin University of China promotion domestically and internationally. MCCS is a key
measure by Renmin University of China (RUC) to actively support the Belt and Road Initiative (BRI) in
education and to cultivate future elite leaders for countries along the BRI that have a passion for
Chinese culture and understand profoundly the path, model and experience of China’s development.
There are four available specializations such as Chinese Politics, Chinese Economy, Chinese
Law and Chinese Culture. Graduates will be awarded the RUC Diploma in postgraduate Studies and
the degree of Master of Laws. During their stay, students will be given access to a privileged range of
cultural and academic experiences, from travel to all corners of China to exchanges with global
leaders and mentorship with experts in their chosen discipline.
If possible, we would like to ask you for some recommendation of excellent students to
participate into this project, and your kindly forwarding and sharing of this program will be highly
appreciated. We will provide comprehensive scholarship for every successful applicant.
For the further details about 2020 Silk Road School enrolment, please find attached the
program overview. In case of any question, please feel free to contact us.
Attachments:
1. 2020 Silk Road School (Suzhou) Program Overview For Scholarship to Study In China2. Silk Road School brochure (Attachments are available from acbcnt@acbc.com.au) Websites: RDCY: http://rdcy-sf.ruc.edu.cn/ Silk Road School: http://srs.ruc.edu.cn/ Online Application (before April 30th, 2020): http://international.ruc.edu.cn/application International Student Office of RUC: http://iso.ruc.edu.cn/more.php?cid=77 Application Schedule: Cut-off date for online applications: April 30, 2020 Interview online: May-June, 2020 Letters of admission sent out: July, 2020 Semester begins: September, 2020 Contact persons: Miss Wu Yinxuan Tel.: 86-010-62516305*8305 Email: srsruc@ruc.edu.cn
ACBC NT WELCOMES NEW AND CONTINUING MEMBERS
Have your member business profile included in the newsletter. Send details to
acbcnt@acbc.com.au
NT ACBC Branch Meeting
Meeting venue is kindly provided by Deloitte NT.
Meetings are open to all members of the ACBC, not just the committee members. Most matters
discussed at the meeting are passed by general agreement. All members are encouraged to
contribute ideas to the discussions.
Current proposed meeting dates for 2020. Meetings start at 8.00 am and end at 9.00 am
Dates Day
29-Apr-20 Wednesday
10-Jun-20 Wednesday
22-Jul-20 Wednesday
2-Sep-20 Wednesday
14-Oct-20 Wednesday
25-Nov-20 Wednesday
2010-2020 NT ACBC Executive
Daryl Guppy - Guppytraders.com (President / National Board Member) China@guppytraders.com
Justin Gill – Adobe Homes (Vice President) jg@newabode.com.au
Joseph Aladin - Deloitte Touche Tohmatsu (Vice President) jaladin@deloitte.com.au
Richard Ting – Darwin City Hotel (Treasurer) hdting@yahoo.com
Gloria Chang - Nidus Innovation and Enterprise Pty Ltd gloria.chang@nidus-aus.com
'Mark Faulkner, TreeTi mark@treeti.com.au
Ex-Officio members
Chris Mouat – Department of Business
Cecila Brennan - Dept. of Foreign Affairs and Trade
Austrade - Martin Ferreyra
NT Tourism – Daryl Hudson
Lisa O'Donoghue – South Australia Liaison
We are keen to hear your success stories
Are you enjoying success in China?
If so, please share with us your success in the Australia China business space. Your story could
inform and inspire others.
We are happy to highlight your success stories in our newsletter. Enquiries at acbcnt@acbc.com.au
China News reports that did not make it into the local media.
China's Xi says countries need to join forces in protecting world economy
Chinese President Xi Jinping said countries should join forces in stopping the world from entering a
recession due to the coronavirus outbreak, reported Reuters.
“The epidemic has hit global production and demand in every way, and countries need to leverage
and coordinate their macro policies and prevent the world economy from falling into recession,” Xi
said in remarks at an extraordinary summit of G20 world leaders on the COVID-19 pandemic held via
video link.
“Fiscal and monetary policies must be implemented effectively, coordination of financial regulations
must be strengthened, and (countries) have to work jointly to safeguard the stability of the global
industrial supply chain.”He also urged China’s fellow G20 member nations to cut tariffs, remove barriers and facilitate trade, Chinese state media reported. China will step up imports and increase foreign investment, while continuing to implement a pro-active fiscal policy and prudent monetary policy, Xi said. Services contraction slowed in March: Caixin PMI China’s services activity contracted at a slower pace in March than the previous month as the coronavirus outbreak eased, a Caixin-sponsored survey showed on Friday. The Caixin China General Services Business Activity Index (PMI), which gives an independent snapshot of operating conditions in the services sector, rose to 43 in March from a record low of 26.5 in the previous month. The March reading marked the second lowest level since the survey began in 2005. A number above 50 indicates an expansion in activity, while a figure below that points to a contraction. “Services activity remained under huge pressure and continued to shrink markedly amid restrictions to contain the coronavirus epidemic,” said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group Ltd., a subsidiary of Caixin Insight Group. The measure for outstanding business at services enterprises plunged into contractionary territory in March from a record high level in February due to the slump in new work. The rate of reduction in backlogs of work last month was the steepest since September 2015. Local governments get more firepower to support post-COVID-19 recovery China’s local authorities will be allowed to pump up sales of special-purpose bonds (SPBs) this year to bolster the government’s firepower in supporting the economy as it struggles to recover from the coronavirus outbreak. They are also being urged to speed up the issuance of the early quotas they have already been allocated, reported Caixin. The announcement was made after a meeting of the State Council, the cabinet, on Tuesday to roll out more policies to support jobs and growth as the world’s second-largest economy heads for the first contraction in quarterly gross domestic product since 1992. “To cope with the severe impact of the current domestic and foreign epidemics on our economy, we must further increase the adjustment of fiscal and monetary policies,” Premier Li Keqiang said in a statement on the government’s website after the meeting. “The series of policy adjustments we took after Spring Festival were mainly to ensure supply and help enterprises, while the aim of this round of policy adjustments is to focus more on expanding domestic demand, helping to resume production and ensuring employment.” The State Council didn’t quantify the increase in the overall quota or specify how much more will be allocated early to provincial-level governments. The Ministry of Finance has already given the green light to the sale of RMB 1.29 trillion ($182 billion) of SPBs, the maximum allowed under the law until the National People’s Congress (NPC) approves the quota for the full year. The delay in holding the annual meeting of the legislature is complicating efforts to raise the funds, which analysts now expect could amount to as much as RMB 4 trillion for the whole year, almost double the RMB 2.15 trillion SPB quota in 2019. AIIB and ADB to lend billions in battle against coronavirus Asia’s leading multilateral development banks will boost their support to companies and governments stricken by the coronavirus pandemic in an effort to avert a financial crisis in the region, reported the Financial Times. The Beijing-based Asian Infrastructure Investment Bank plans to lend at least $5 billion to member countries to help them battle the pandemic. Jin Liqun, the AIIB’s president and chairman, told the Financial Times that he expected this amount to serve its members’ needs for 18 months when combined with existing lending programs. “But if the demand is much bigger, it is possible for us to increase the amount, with the approval of our board,” Jin added. “The crisis has laid bare the vulnerability of so many countries. We need to focus on building up the public health infrastructure.” The American dominated Asian Development Bank, which announced a $6.5 billion package in March, is also seeking to provide a further package. Of the AIIB’s 78 members, 20 have requested the bank’s assistance to fight the virus, with India expected to be among the hardest hit by the pandemic. It is expected that the AIIB board will extend $355 million to China in what would be the institution’s first loan in the healthcare sector. Pigs fly in as China replenishes world's biggest hog herd Six planes carrying more than 4,000 high-quality French breeding pigs have arrived in China so far this year, the first of an expected dozens of plane-loads as the world’s top pork producer rebuilds its decimated hog herd, reported Reuters. China is ramping up imports as it rushes to restock after an outbreak of African swine fever swept through the country from late 2018, killing tens of millions of pigs and reducing its sow herd by as much as 60%.
Soaring pork prices and a government drive to rebuild have prompted farmers who had halted buying to resume orders, with some doubling contracts that had been signed prior to the disease. Each charter is worth up to €1.5 million ($1.6 million). China bans export of uncertified medical supplies China has banned the export of coronavirus test kits and other medical supplies that do not meet the country’s own standards, reported Caixin. The decision follows controversies in several virus-stricken nations over the poor quality of some tests and medical supplies exported from China. China’s Ministry of Commerce, General Administration of Customs, and National Medical Products Administration (NMPA) announced in a joint statement this week that from Wednesday, Chinese customs will only allow the export of medical supplies which are certified by the NMPA. The order includes all exported tests, masks, personal protective equipment, ventilators, and infrared thermometers. Authorities took the step to ensure the quality and safety of exported medical supplies, the statement said. China's ports brace for second hit as virus spread wipes out exports China’s ports and shipping firms are bracing for a second wave of supply chain disruptions that may be deeper and more prolonged than during the country’s coronavirus lockdown as the global spread of the virus chokes off international demand, reported Reuters. With Beijing reporting only sporadic domestic transmission of the coronavirus since March, workers have been allowed to return to posts, factories are restarting, and ports are rushing to clear a backlog of cargoes. But with virus outbreaks now overwhelming healthcare systems and shutting logistics channels in other major economies, exporters and industry analysts warn that global demand for products made and shipped out of China looks set to plunge. “We expect the near-term impact on trade growth in coming quarters likely to be the worst ever, as economies stall and external demand faces imminent collapse on large scale quarantine measures across major economies,” said Rahul Kapoor, vice president at IHS Markit. China’s container processing volumes fell 10.6% in the first two months of 2020 compared to the year before, while exports dropped 17.2%. China’s manufacturing activity rebounds in March China’s manufacturing activity recovered in March as workers returned to businesses, despite the expanding coronavirus outbreak overseas denting foreign demand, a Caixin-sponsored survey showed Wednesday, reported Caixin. The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, rebounded to 50.1 in March from a record low of 40.3 the previous month. A number above 50 indicates an expansion in activity, while a reading below that signals a contraction. As China’s coronavirus epidemic has been generally contained thanks to draconian control measures, policymakers have begun to focus on how to minimize the impact of the unprecedented disruption to the economy. Workers have been able to return to factories as travel restrictions have been gradually lifted, so manufacturers are resuming operations, though they are still facing headwinds from sluggish demand and dislocated supply chains. The level of manufacturing expansion in March was similar to that seen before the pandemic, said Zhong Zhengsheng, director of macroeconomic analysis with consultancy CEBM Group Ltd., a subsidiary of Caixin Insight Group. As epidemic wanes, 72% of small and midsize businesses are back to work An average of 71.7% of small and midsize enterprises in China were back in business as of Tuesday, an increase of 42.1 percentage points from a month ago, according to the Ministry of Industry and Information Technology, reported Caixin. Most enterprises with specialized technologies and better innovative capacities in Hunan and Sichuan achieved nearly full resumption following weeks of widespread shutdowns to contain the Covid-19 virus, a ministry official said. Authorities will provide more support to industries with long business chains such as autos and electronics to drive a broader business recovery. About 50 large enterprises and more than 7,000 smaller suppliers will be picked for support, the official said. China is gradually relaxing restrictions to resume economic and social activities after nearly two months of lockdowns effectively contained the Covid-19 pandemic. However, outside China business is grinding to a halt in more countries as governments step up measures to contain the disease. For more China business news and information, visit www.chinaeconomicreview.com
PROPOSED NT BRANCH CHINA BUSINESS BRIEFINGS 2020
The Business Briefings in 2020 and be provided free of charge for members only. Visitors are
welcome to attend, but a small $20 fee is payable. (Free if you join ACBC at the briefing) . Briefings
run for about 60 minutes. Business Briefing sponsorship options are also available.
For more information, or requests for specific briefing topics, please contact ACBC Secretariat on
89270061 or acbcnt@acbc.com.au
ACBC NT OBJECTIVES
We aim for these services for ACBC NT members:
• To assist members to understand the nature of the business environment in China and where
relevant opportunities lie.
• To raise the profile of ACBC NT members within the NT and Chinese business environment
• To share information regarding industry issues in the China market.
• To assist in generating business between member businesses.
• To facilitate co-operation with the China Council for the Promotion of International Trade in
relation to business issues.
• To present the views of NT SMEs operating in China to government authorities and other
business groups where appropriate.
• To share market and economic intelligence and insights on critical industry issues.
• To create and maintain a collaborative community of business owners that can draw on each
other for support in their engagement with China.
• To work in a collaborative community of Chinese business, cultural and friendship organisations
to expand the networking capacity of NT members.
These objectives are achieved with networking events, workshops, conferences, briefing, newsletter
communication and participation in creation of NT and national Government strategies.
AUSTRALIA CHINA FRIENDSHIP SOCIETY
The Darwin branch of the ACFS is a co-operative partner with ACBC NT. ACBC NT members are
encouraged to attend ACFS events.
ACFS has completed their first NewsLetter, a website and facebook. The web address is:
www.acfsnt.org.au The facebook address is https:\\www.facebook.com/acfs.nt
UPDATED CHINA RESOURCES FOR NT MEMBERS
ACBC NT has an updated list of China resources available for NT members. This includes translators,
interpreters, graphic artists and design teams. Some are based in Darwin and some in China. Please
contact ACBC Secretariat on 89270061 or acbcnt@acbc.com.au for details
FORWARD THE NEWSLETTER TO A FRIEND
NEWSLETTER CONTRIBUTIONS ARE WELCOME. Keep other members informed about
China experiences. Please email notes or comments to acbcnt@acbc.com.au . Please use
email header ACBC NOTE. Information received up to the da y prior to publication will
be included.NOTE. The views of contributors are their own and do not necessarily reflect the views of the ACBC NT
or the ACBC. Content is copyright and cannot be used without permission.
Northern Territory
MEMBERSHIP APPLICATION
Please complete this Membership Form with your details if you are applying to join the Australia China
Business Council for the first time.
BASIC DETAILS
Company Name
Company name in Chinese
Industry sector
Branch membership NT Branch
Member Type - This is based on the annual
turnover.
Company email address
Company web site http://
Date of application
CONTACT DETAILS
Title
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LOCATION DETAILS
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State Northern Territory
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Please cross out if you do not want your contact I agree to be included in all associated ACBC
details to be given to third parties who issue and appropriate third-party event notifications
event invitations to ACBC members
Country Australia
PAYMENT METHOD
Cheque Please post to: GPO Box 2769, Darwin NT 0801
Cash Deposit ANZ Darwin, BSB: 015901, A/C: 487 379 699
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PLEASE RETURN COMPLETED FORM TO ACBC NT GPO BOX 2769, Darwin NT 0801
Or Email: acbcnt@acbc.com.au
Membership TOTAL
NT Government Departments 1024.87Companies Annual turnover: More than $ 50 million * 3492.50 $ 15 million to $ 50 million 1831.50 $ 5 million to $ 15 million 1024.87 Less than $ 5 million 532.40
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