'While the World Spends on Coronavirus Bailouts, China Holds Back' diff viewer (7/8)

This article is from the source 'nytimes' and was first published or seen on April 09, 2020 10:18 (UTC). It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2020/04/09/business/economy/coronavirus-china-economy-stimulus.html

The article has changed 16 times. There is an RSS feed of changes available.

Previous version 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next version

Previous version 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next version

Version 7	Version 8
While the World Spends on Coronavirus Bailouts, China Holds Back	While the World Spends on Coronavirus Bailouts, China Holds Back
2020-06-15 22:08:48 UTC	2020-06-17 04:05:06 UTC (1 day later)
BEIJING — The world is opening its wallet to fight the effects of the coronavirus outbreak. The United States unveiled a $2 trillion rescue package. European countries have announced their own spending blitz, and Japan approved a nearly $1 trillion economic stimulus plan.	BEIJING — The world is opening its wallet to fight the effects of the coronavirus outbreak. The United States unveiled a $2 trillion rescue package. European countries have announced their own spending blitz, and Japan approved a nearly $1 trillion economic stimulus plan.
Then there’s China.	Then there’s China.
The country that famously helped kick-start the world economy after the 2008 global financial crisis with a half-a-trillion-dollar spending splurge has been relatively restrained this time around. While it is helping companies keep workers and pushing its state-run banks to lend more, China has held back from spending on big packages or flooding its financial system with money.	The country that famously helped kick-start the world economy after the 2008 global financial crisis with a half-a-trillion-dollar spending splurge has been relatively restrained this time around. While it is helping companies keep workers and pushing its state-run banks to lend more, China has held back from spending on big packages or flooding its financial system with money.
In an odd juxtaposition, the communist country has also mostly refrained from giving money directly to its people. By contrast, President Trump — who once denounced the prospect of growing socialism in the United States — signed into law a package that includes $1,200 checks for all but the most affluent American adults.	In an odd juxtaposition, the communist country has also mostly refrained from giving money directly to its people. By contrast, President Trump — who once denounced the prospect of growing socialism in the United States — signed into law a package that includes $1,200 checks for all but the most affluent American adults.
A growing number of people say China should do more. Prominent economists are calling on Beijing to get the country’s consumers spending again. At least seven provinces and cities are already distributing vouchers to empower spenders.	A growing number of people say China should do more. Prominent economists are calling on Beijing to get the country’s consumers spending again. At least seven provinces and cities are already distributing vouchers to empower spenders.
Justin Lin Yifu, an influential government adviser, called at a conference last week for China to rekindle economic growth by introducing vouchers nationwide that must be spent quickly or become worthless.	Justin Lin Yifu, an influential government adviser, called at a conference last week for China to rekindle economic growth by introducing vouchers nationwide that must be spent quickly or become worthless.
“Consumption vouchers are more effective” than distributing cash, he said. “People may not consume cash when they get it, so it will not be directly converted into demand.”	“Consumption vouchers are more effective” than distributing cash, he said. “People may not consume cash when they get it, so it will not be directly converted into demand.”
The aim is to help China’s growing ranks of college-educated employees like Huang Yihan, as well as the factory workers who largely powered the economy in the past. Ms. Huang, 24, lost her job at an eight-employee ad agency in Shanghai in early February, and received only two months’ pay as severance because she had been a recent hire.	The aim is to help China’s growing ranks of college-educated employees like Huang Yihan, as well as the factory workers who largely powered the economy in the past. Ms. Huang, 24, lost her job at an eight-employee ad agency in Shanghai in early February, and received only two months’ pay as severance because she had been a recent hire.
Like many in her generation who grew up in a rapidly expanding economy, Ms. Huang did not expect to find herself unemployed. She studied hard in high school and attended a top-notch university in Guangzhou in southern China. But now she surveys a hiring landscape that has suddenly turned bleak for millions of young Chinese.	Like many in her generation who grew up in a rapidly expanding economy, Ms. Huang did not expect to find herself unemployed. She studied hard in high school and attended a top-notch university in Guangzhou in southern China. But now she surveys a hiring landscape that has suddenly turned bleak for millions of young Chinese.
The quarterly rent payment for her share of an apartment is coming due in mid-April. She faces a choice of paying the rent or paying for food as she looks for her next job, though she expressed confidence that one could be found.	The quarterly rent payment for her share of an apartment is coming due in mid-April. She faces a choice of paying the rent or paying for food as she looks for her next job, though she expressed confidence that one could be found.
“If I take out the rent, I won’t be left with much money,” she said.	“If I take out the rent, I won’t be left with much money,” she said.
The extent of the damage that China must reverse still is not clear. Its huge economy, a major engine of global growth, was effectively idled in February after the coronavirus spread from an initial outbreak in the city of Wuhan. A glimpse of the full impact on the country may come on April 17, when China reports economic statistics for the first three months of the year. But economists widely believe the shutdown has doomed untold numbers of jobs and small businesses.	The extent of the damage that China must reverse still is not clear. Its huge economy, a major engine of global growth, was effectively idled in February after the coronavirus spread from an initial outbreak in the city of Wuhan. A glimpse of the full impact on the country may come on April 17, when China reports economic statistics for the first three months of the year. But economists widely believe the shutdown has doomed untold numbers of jobs and small businesses.
Restarting the economy will be a lot tougher than it was after 2008, when China unveiled a $586 billion spending package. That package funded highways, bridges and high-speed rail lines across the country. It enabled big construction projects. Steel, glass and cement factories revved up to meet the new demand.	Restarting the economy will be a lot tougher than it was after 2008, when China unveiled a $586 billion spending package. That package funded highways, bridges and high-speed rail lines across the country. It enabled big construction projects. Steel, glass and cement factories revved up to meet the new demand.
China’s economy has tripled in size since then and become more diverse and more complex. China now has a much more highly educated labor force with less enthusiasm for manual labor. The service sector has become more important.	China’s economy has tripled in size since then and become more diverse and more complex. China now has a much more highly educated labor force with less enthusiasm for manual labor. The service sector has become more important.
“Negative impacts of the coronavirus disease are mainly borne by people working specific industries, such as restaurants, hotels, transportation companies, movie theaters and tourism,” said Zhi George Yu, an economist at Renmin University of China. “Infrastructure investment will not directly absorb many workers who worked in the industries mostly impacted by the disease.”	“Negative impacts of the coronavirus disease are mainly borne by people working specific industries, such as restaurants, hotels, transportation companies, movie theaters and tourism,” said Zhi George Yu, an economist at Renmin University of China. “Infrastructure investment will not directly absorb many workers who worked in the industries mostly impacted by the disease.”
China is still recovering from its last binge. In addition to the spending, Beijing unleashed $2 trillion in new lending and made other moves that dumped still more credit into the financial system. As a result, China became one of the world’s most indebted economies in less than a decade. Economists inside and outside the country have warned that the debt — much of it hidden away on the books of local governments and state-run companies — could disrupt the financial system and hold back long-term growth.	China is still recovering from its last binge. In addition to the spending, Beijing unleashed $2 trillion in new lending and made other moves that dumped still more credit into the financial system. As a result, China became one of the world’s most indebted economies in less than a decade. Economists inside and outside the country have warned that the debt — much of it hidden away on the books of local governments and state-run companies — could disrupt the financial system and hold back long-term growth.
Even if China strengthens its economy internally, it must cope with a lack of demand for its goods from abroad.	Even if China strengthens its economy internally, it must cope with a lack of demand for its goods from abroad.
From brick-and-mortar stores overseas, “in the last few days, the amount of orders that have been canceled at the factory is staggering,” said Sabrina Finlay, chief executive of Otabo, a footwear company in Minneapolis that does its manufacturing in China. Online sales in China have improved as the country bounces back, she added, but traffic at stores there has not fully returned.	From brick-and-mortar stores overseas, “in the last few days, the amount of orders that have been canceled at the factory is staggering,” said Sabrina Finlay, chief executive of Otabo, a footwear company in Minneapolis that does its manufacturing in China. Online sales in China have improved as the country bounces back, she added, but traffic at stores there has not fully returned.
Like France, China has focused on helping companies keep paying their workers. The newest moves, unveiled last week, will support the state-owned banking sector to lend another $200 billion to businesses, particularly smaller ones. Local governments have also issued $150 billion in bonds so far this year to pay contractors for the construction of roads, bridges and other projects.	Like France, China has focused on helping companies keep paying their workers. The newest moves, unveiled last week, will support the state-owned banking sector to lend another $200 billion to businesses, particularly smaller ones. Local governments have also issued $150 billion in bonds so far this year to pay contractors for the construction of roads, bridges and other projects.
When Xibei, a chain of 386 restaurants specializing in roasted lamb and other northwestern Chinese cuisine, warned publicly that it was running low on money to pay its 22,000 employees, China’s government and banking system jumped into action.	When Xibei, a chain of 386 restaurants specializing in roasted lamb and other northwestern Chinese cuisine, warned publicly that it was running low on money to pay its 22,000 employees, China’s government and banking system jumped into action.
Within two days, the government was discussing financial assistance, said Jia Guolong, the company’s chairman. Three days later, loan documents were signed for a $200 million, three-year, low-interest line of credit from a state-owned bank. Four days after that, Xibei was paying its workers.	Within two days, the government was discussing financial assistance, said Jia Guolong, the company’s chairman. Three days later, loan documents were signed for a $200 million, three-year, low-interest line of credit from a state-owned bank. Four days after that, Xibei was paying its workers.
“It was a requirement from the bank that we use the money to pay only salaries and food suppliers,” Mr. Jia said in a telephone interview.	“It was a requirement from the bank that we use the money to pay only salaries and food suppliers,” Mr. Jia said in a telephone interview.
But Beijing is providing almost no financial assistance directly to the general public. As factory orders have dried up for exports and abroad, many manufacturing employees no longer work overtime, which previously accounted for up to a third of their compensation. While the last large-scale lockdown in China ended in Wuhan on Wednesday morning, many social-distancing rules remain in effect nationwide and have discouraged people from going out to eat or paying for other services.	But Beijing is providing almost no financial assistance directly to the general public. As factory orders have dried up for exports and abroad, many manufacturing employees no longer work overtime, which previously accounted for up to a third of their compensation. While the last large-scale lockdown in China ended in Wuhan on Wednesday morning, many social-distancing rules remain in effect nationwide and have discouraged people from going out to eat or paying for other services.
So spending has stayed weak. Even now, Xibei’s restaurants have just a little over half the daily sales they had before the pandemic, Mr. Jia said.	So spending has stayed weak. Even now, Xibei’s restaurants have just a little over half the daily sales they had before the pandemic, Mr. Jia said.
~~Updated June ~~12,~~ 2020~~	Updated June 16, 2020
	The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.	So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.	A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.	The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.	Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.	Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.	The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.