CX Daily: China’s Rare-Earth Hub With Wrestles a Stubborn Problem — Cleaning Up

China’s top leaders promise to boost stimulus and contain the country’s worst Covid outbreak since 2020.

Caixin Global

May 05, 2022

TOP STORY

The ponds left by rare-earth mining in Longnan city in Ganzhou in March. Photo: Ding Gang/Caixin　

Rare earth /

In Depth: China’s rare-earth hub wrestles with a stubborn problem — cleaning up

Ganzhou produces 70% of the world’s medium and heavy rare earths, according to local government data (link in Chinese). Its output has helped turn China into the world’s largest exporter of rare earths, responsible for almost 60% global output in 2020, according to the United States Geological Survey.

However, rare-earth extraction, despite its economic benefits for locals, has left the people of Ganzhou living with toxic water and contaminated soil. Government efforts to clean up the mining sites have fallen short of solving the area’s deep-rooted environmental problems due to lack of funding and technology.

Switzerland /

Switzerland’s neutrality policy in the spotlight after it joins EU sanctions against Russia

Switzerland, known for its neutral status in foreign relations for over two centuries, has recently come under a spotlight after it sided with the European Union in imposing sanctions against Moscow and its leaders over the Ukraine war.

That move triggered questions about the future of the country’s policy of neutrality. In an interview with Caixin, Swiss Ambassador to China Bernardino Regazzoni said neutrality doesn’t mean indifference, and that a neutral state has the right to choose political positions and can stand up for universal values.

FINANCE & ECONOMY

China Customs officers raise a Chinese flag at sunrise on Jan. 4 during a rehearsal for a flag-raising ceremony at the Bund in Shanghai. Photo: Bloomberg

Stimulus /

Caixin explains: The Politburo’s strong pro-growth signal

China’s top policymakers sent a strong pro-growth signal to the market Friday by issuing a sweeping set of pledges to stimulate the economy, emphasizing infrastructure, real estate and internet platform companies.

China will step up policy support for the economy in the face of rising risks and challenges brought by domestic Covid-19 outbreaks and the war in Ukraine, according to a statement issued following a quarterly economic meeting of the 25-member Politburo headed by President Xi Jinping.

“The complexity and uncertainty facing China’s economic development is growing. And there are new challenges to stabilizing growth, employment and prices,” the Politburo said in a statement published by the official Xinhua News Agency. “It is very important to do a good job in economic work and effectively protect and improve people’s livelihood.”

China’s Politburo ignites market rally with vows on growth

Digital currency /

Hong Kong sounds out public on digital currency

The Hong Kong Monetary Authority (HKMA) is calling for public feedback on the policy and design issues surrounding a retail digital currency — the so-called e-HKD. It’s the latest step by city authorities seeking justification for creating a central bank digital currency (CBDC) for public use.

In a paper released Wednesday, the city’s de facto central bank examined the benefits, challenges and use cases of the potential e-HKD. It also looked into design considerations such as the issuance mechanism, interoperability with other payment systems, privacy and data protection, as well as legal considerations. The paper is accepting public feedback until May 27.

UBS /

UBS names securities venture chief as new China head

UBS Group AG named Eugene Qian, chairman of the Swiss bank’s China securities venture, to head its China operations, succeeding David Chin, who will continue with the company.

The appointment will take effect July 1, UBS said Thursday.

Qian briefly served as UBS’s China chief in 2015 when he rejoined the bank. He worked for the investment banking department of the bank’s Asia-Pacific region between 1997 and 2003 before departing for several senior positions with Deutsche Bank and Citigroup Inc.

Quick hits /

China brokers’ profits suffer as stock rout pummels trading
China Carbon Watch (March): Record drawdown in trading volume

BUSINESS & TECH

Local governments are also likely to relax restrictions on home buying and mortgage applications in future. Photo: VCG

Property /

Politburo urges local governments to loosen grip on developers’ pre-sales revenue

Top Communist Party decision-makers called on local governments to loosen their grip on how developers use revenue from property pre-sales as part of efforts to stabilize the real estate market and the broader economy.

Housing sales have continued to dwindle in the wake of the liquidity crunch that hit developers late last year, even as some regions have already begun to ease the strict policies that helped to set off the crisis.

Autos /

Covid disruptions hammer China’s auto industry profits

Auto industry profits in China are suffering under the pressure of rising raw material costs, a supply chain crunch and shrinking demand caused by Covid-led lockdowns.

Total profits of the auto industry in the first quarter fell 11.9% year-on-year to 115 billion yuan ($17.35 billion), according to data released Wednesday by the National Bureau of Statistics. Revenues of automakers and auto parts makers grew just 0.9%, while operating costs jumped by 1.8% from the same period last year.

Airport /

Guangzhou Airport grounds some flights after staff come down with Covid

Guangzhou Baiyun International Airport, China’s busiest airport by passenger traffic last year, announced late Thursday the grounding of domestic passenger flights for two days after four Covid-19 infections were found among airport staff and their relatives.

The cases were detected during routine daily testing. The government of the South China metropolis, where the airport is based, has since launched mass testing on the majority of its 18.7 million people, and suspended some subway and bus routes to the airport.

Logistics /

Logistics firm gets pass to truck goods out of locked-down Shanghai

STO Express Co. Ltd. obtained licenses that allow the Chinese logistics company to truck goods out of Shanghai as part of the Covid-hit city’s efforts to encourage local manufacturers to resume operations.

Each of the licenses, issued Sunday by the Shanghai Municipal Postal Administration, allows one of the Shanghai-based STO’s trucks to transport goods to Central China’s Hunan province.

Quick hits /