As there is
no respite in the fight against the Chinese Virus, things are taking bit ugly
turns around the world. In India, the war against the Chinese Virus has opened
so many battlefronts. There is the unsettled labour class, the halted economy,
which is going deeper into the hole, the ceasefire violation across the LOC by
Pakistan is also adding to the cause of worry every single day, making the
situation very tricky for the decision-makers. Where this conflict and crisis
is going to take the Indian Economy?
In this
time of crisis, it is not easy to keep emotions in control, every one of us has come
across the idea of destroying China at least once a day. And why can’t anyone
be so negative, for the country which did nothing to stop the epidemic to turn
into a pandemic, which in turn ruined the largest economies of the world. Where
majority of the countries of the world are struggling to survive the economic mayhem,
China & Chinese Companies have kept himself well prepared to penetrate the
bearish markets of the world.
Not only
the fact that Chinese companies are investing heavily in the bear market
all over the world, but also the Chinese Banks are also investing in the other
markets. Recently Chinese Central Bank also known as Peoples Bank of China
invested in HDFC (Housing Development Finance Corporation) an Indian private
bank also known as one of the Giant lenders in India. Now Peoples Bank of China owns 1% of the total stake in HDFC.
The shock
to the global economy from the Chinese Virus has been both faster and more severe than
the 2008 global financial crisis (GFC) and even the Great Depression. In those
two previous episodes, stock markets collapsed by 50% or more, credit markets
froze up, massive bankruptcies followed, unemployment rates soared above 10%,
and GDP contracted at an annualized rate of 10% or more. But all of this took
around three years to play out. In the current crisis, similarly dire
macroeconomic and financial outcomes have materialized in three weeks.
While China
is the one country that helped to kick start the Global recession of 2008 by increasing
its spending capacity by half a trillion dollars but when it comes to the current situation, it has not spent on bailout packages for relief of the
citizens while the United States has pledged 2 trillion dollar funds as rescue
packages, other European countries have also made their reserves available to help the rescue of the citizens and the economy. And
while the rescue work is not funded in China, it is busy making investments in other countries with their surplus reserves.
If not,
then, why there was a delay in the action to prevent the spread of the Chinese
Virus? Why China did not agree to the Human to Human transmission of the NOVEL
Chinese Virus which delayed the WHO advice to the world? The WHO (World Health
Organisation) kept on repeating what the Chinese Government wanted to say. Even
though Twitter is totally banned in China, the top government officials use it to
spread the Chinese Propaganda and the one who wishes to be a whistleblower or
even to come out and condemn the actions of the government gets arrested.
We all know
Dr. Li Wenliang – a Chinese Ophthalmologist who worked as a physician at Wuhan
Central Hospital warned his colleagues in mid-December, about the possible out
break of an illness that resembled severe acute respiratory syndrome, but was
issued with a warning notice from the Police and was even interrogated for hours,
finally was allowed to return to work but only after signing the letter of admonition,
promising not to repeat the offense else will be prosecuted. It was after that Li
returned to work and got infected with the virus in the hospital and lost his
life on 7th February in the fight against the same virus for which he warned everyone.
This is not
the only case. Xu Zhiyoung – a Chinese Lecturer at Beijing University of Post
and Telecommunication called on Xi Jinping to resign for the disaster in China
and demanded officials to be held responsible for the death of whistleblower Dr.
Li Wenliang on a charge that officials did not authorize the truth to be released on time and
let the outbreak into a national disaster and then a global disaster. Xu is
also a Chinese civil rights activist. He was detained for his derogatory remarks
on the government, later on, which is likely to end in a lengthy jail term.
Ren Zhiqiang
: A real estate tycoon, referred to Xi Jinping as “power-hungry clown” He went
on to say that “ I saw not an emperor standing there, exhibiting his new
clothes, but a clown who stripped of his clothes and insisted on continuing being
an emperor”. He not only spoke about Xi Jinping but also criticized the
authorities for not taking the timely action against the Chinese Virus. He is
now facing serious allegations of committing “Serious Violations” of the
law.
Likewise,
Fu Ying who is an Ex-Vice Foreign Minister in the Chinese Government wrote an
article in the Daily Times (A Chinese News Paper) called – “ Improving the
right to speak in Telling Chinese Stories.” In this article, she mentioned that “all
the disclosure shall be based on rich facts and practices, and vague concepts
and announcements are not enough to impress people.” Obviously, this article was later taken down by the regular surveillance of the Chinese government over the media.
All these situations suggest that there is no Fundamental Right to speak in that country and itis trying to keep
their citizen's under strict surveillance and with the tremendous reserves of the money they are funding
in all the investments all over the world markets.
Even though
Japan has announced a package of almost 990 Billion dollars to cushion the
impact of the pandemic for its economic and social stability, it has also announced
a package of 2.2 Billion Dollars that is 220 billion yens for the firms to
shift out the production facilities from China to Japan. This will give a good
push to regain the country’s economy and in the future, times of crisis like this, the supply chain of the country is not hampered. Japanese Prime Minister Mr. Shinzo
Abe has taken this decision, It is to be seen that how does this change in
policy stance will affect Japan’s relationship with China, which is one of the
biggest trading partner.
As soon as
the news from Japan emerged the Economic Advisor to the White House, Mr. Larry Kudlow
said that “the U.S. should allow companies to deduct the entire cost of capital
spending, including relocating from China, as the administration looks for ways
to jump-start, an economy hobbled by the coronavirus pandemic.” He further
proposed that that “the plant, equipment, IPR, structures, renovations, etc. in
other words 100% immediate expensing cost should be paid by the government to
the U.S. companies moving out from China back to the U.S.
As the world is trying to find a cure for the virus, the global trade war is something
on the cards for a while, we have to wait and watch what further decisions will
be taken by the Giant Economies by which we will be able to decide who is going to win this
battle. My bet is the next production hub which is none other than the quiet a spectator in this game – INDIA. no doubt China will be leading the scorecard, but there is a lot more for India to gain out of this.
Well I hope
this article was of some help to know what warfare China is using, I am so angry
that I want that China should lose its UNSC (United Nations Security Council)
Seat for spreading of this Pandemic. Is this possible? Stay tuned to this place where I will come
up with the next article on “Can China be removed from UNSC.”
Thank you 😊
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