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China Expands Grad Colleges because the Younger Search Jobs

Graduation was getting closer, but Yang Xiaomin, a 21-year-old student in northeast China, skipped her university’s job fair. Nor did she look for positions alone. She didn’t think she had a chance of landing one.

“Some jobs won’t even take resumes from people with bachelor’s degrees,” said Ms. Yang, who passed the national graduate school entrance exam along with a record 3.77 million of her colleagues last month. “Going to graduate school won’t necessarily help me find a better job, but at least it gives me more options.”

China’s economy has largely recovered from the coronavirus pandemic. The data released on Monday shows it may be the only major economy that has grown over the past year. Yet one area is sorely lacking: the supply of desirable, well-paid jobs for the rapidly growing number of university graduates in the country. Most of the recovery was driven by labor sectors such as manufacturing, which the Chinese economy remains heavily reliant on.

With government encouragement, many students are turning to a stopgap solution: stay in school. The Chinese Ministry of Education announced at the height of the outbreak that it would order universities to increase the number of master’s candidates by 189,000, an increase of nearly 25 percent, in an attempt to reduce unemployment. Undergraduate slots would also increase by more than 300,000.

Almost four million hopefuls took the graduate entrance exam last month. This corresponds to an increase of almost 11 percent compared to the previous year and more than double the figure compared to 2016.

Schools are a common landing site in times of economic uncertainty, but in China the urge to expand enrollment has been a long-term problem. Even before the pandemic, the country’s graduates complained that there were not enough suitable jobs. Official employment figures are unreliable, but authorities said in 2014 that the unemployment rate among college graduates was up to 30 percent in some areas two months after graduation.

As a result, many Chinese have feared that expanding college graduate slots will increase already fierce competition for jobs, dilute the value of advanced degrees, or postpone an unemployment crisis. “Are graduate students under siege?” read the headline of a government-controlled publication.

In recent years, the Communist Party has often linked the prosperity of college graduates not only to economic development but also to “social stability”, and fears that they could be a source of political unrest if their economic fortunes were to falter .

However, to keep unemployment among these workers low, the government must also be careful not to raise its hopes, said Joshua Mok, a professor at Lingnan University in Hong Kong who studies China’s education policy. “It can create a false expectation for these highly skilled people,” said Professor Mok. “The Chinese government must pay attention to how these expectations can be dealt with.”

The government’s expansion push is part of a broader, decade-long effort to increase university enrollment. According to official statistics, China had fewer than 3.5 million undergraduate and graduate students in 1997. In 2019 there were more than 33 million excluding online schools and adult higher education institutions.

The number of university degrees per capita is still behind that of the industrialized countries. According to government statistics, there are around two doctoral students for every 1,000 Chinese, and around nine in the United States. Still, China’s economy has not kept pace with the rapid expansion of higher education, with each round of new graduates competing for a small pool of jobs.

The pandemic has exacerbated these concerns. A report from Zhaopin, China’s largest job-recruiting platform, found that 26.3 percent of college graduates were unemployed in 2020 last June. According to the report, jobs for recent college graduates decreased 7 percent from the same period last year, while the number of applicants rose nearly 63 percent.

“What the current Chinese economy needs is more people with technical qualifications than just general degrees from universities,” said Professor Mok. “There is a skill mismatch.”

The competition has made many students feel that an advanced degree is practically mandatory. Ms. Yang, who studies land resource management, said she had known for a long time that she would attend graduate school because her bachelor’s degree alone was “too inferior.”

She knew that competition for approval would increase after the outbreak. “If you choose to take the master’s exam, you can’t be afraid that there will be lots of other people,” she said.

Others accepted less. On Weibo, where the hashtag is “What do you think of the excitement for final exams?” has been viewed more than 240 million times, many feared that if enrollment skyrocketed, the quality of teaching or the value of their degree would decline.

Others have asked if the government is just postponing rising unemployment for a few years. Some feared that companies would raise their application standards. Still others wondered if there would be enough dorms to accommodate all of the students.

“Enrollment expansion is not just a matter of arithmetic,” wrote one person. “We need to think about how this will affect the general development of education and society.”

Concern reached such a high point that it sparked a government response. Hong Dayong, an Education Department official, admitted at a press conference last month that some universities were facing teacher shortages with increasing graduate programs. However, she said officials would put in place stricter quality control measures and that the government would encourage universities to offer more professionally oriented masters degrees to help graduates find jobs.

The government has also ordered state-owned companies to hire newer graduates and subsidized companies that hire them.

Some advice was blunt. Chu Chaohui, a researcher at China’s National Institute of Education, told the state-run tabloid Global Times that graduates should lower their sight. In doing so, they would find jobs in sectors like grocery or parcel delivery, he said.

Indeed, excessive expectations can increase competition for jobs. According to Zhaopin, the recruiting website, college graduates have around 1.4 vacancies for each applicant, even after the epidemic. But many graduates only look to the largest cities or expect high salaries, said Professor Mok.

Still, some students said that encouraging the government to pursue higher education would only bolster those expectations.

“Everyone has their own ambitions, even a little arrogance,” said Bai Jingting, a business student in eastern Anhui Province. Ms. Bai, 20, said she attended her college’s job fair in the fall but couldn’t find any jobs that seemed exciting enough. “Since I applied for a graduate school, I will of course think about how it should be easier to find a job afterwards and find a job that I want.”

Another incentive for the competition is the fact that many students who wanted to study or work abroad no longer have this option.

Prior to the pandemic, Fan Ledi, a graduate of western Qinghai Province, had planned to move to Ireland for a one-year master’s degree in human resource management. After that, he wanted to work there, excited about the prospect of learning about a new culture.

But he has ditched that plan and will be looking for jobs at home when he finishes his program, which he completes online due to travel restrictions.

“The Irish are struggling to find work, let alone foreigners,” Fan said. He added that he was concerned about discrimination as anti-China sentiment rises in many western countries. “I think it is decidedly impossible to go abroad to find work now.”

He’s already attending job fairs, but won’t finish school until November. Recruiters tell him he’s early but he asks them to take his resume anyway.

Faced with the jostling for jobs and college graduate positions, Ms. Bai shrugged when the government increased the number of masters’ seats in Anhui. Her major in business was one of the most popular, she said, and competition would always be fierce.

“How Much Can Enrollment Expand?” She said. “It’s just a drop in the ocean.”

Albee Zhang and Liu Yi contributed to the research.

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Business

First Shanghai-made crossovers delivered in China

Elon Musk, CEO of Tesla, speaks at an opening ceremony for the Tesla China-made Model Y program in Shanghai on Jan. 7.

Aly Song | Reuters

Tesla has reportedly started supplying locally produced Model Y crossovers in China. This is another milestone for the electric car manufacturer in the world’s largest vehicle market.

According to the state news agency Xinhua, shipments of the crossover made in China began on Monday. Tesla previously imported Model Y vehicles to China from its California facility. It is unclear how many Model Y vehicles were delivered or whether they were delivered to employees or retail customers. Tesla didn’t immediately respond to a comment.

China – the world’s largest market for electric vehicles – is critical to Tesla and its growth plans. The company plans to increase its vehicle sales from around 500,000 in 2020 to 20 million per year over the next ten years.

China was a driving force behind Tesla’s 2020 delivery volume – the company shipped 499,550 vehicles. This corresponds to an impressive increase of 36% over the previous year, but is slightly below the most recent forecast of 500,000 vehicles.

The company began production of the Tesla Model 3 sedan in its Gigafactory in Shanghai, China – the first plant outside the United States – in late 2019. Shipments of the Model 3 to Chinese customers began a little over a year ago. Since then, Tesla CEO Elon Musk has become the richest person in the world thanks to a massive 700% surge in the company’s shares.

Tesla built its $ 2 billion plant in Shanghai in just under a year, a quick time frame for the global auto industry. Automakers are building local vehicle production to reduce shipping costs and avoid import duties or delays, especially in China.

Correction: Tesla has imported vehicles such as the Model X and Model S into China from its California facility. A previous version of this article incorrectly stated which models were imported into China.

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World News

China says it’s going to sanction U.S. officers for ‘nasty’ conduct on Taiwan

A Chinese and US flag on a booth during the first China International Import Expo in Shanghai, November 6, 2018.

Johannes Eisele | AFP | Getty Images

SINGAPORE – China will impose sanctions on US officials who have acted “badly” in relation to Taiwan, the Chinese State Department said on Monday.

The decision was announced by Foreign Ministry spokeswoman Hua Chunying in response to a reporter’s question about what China would do in response to the lifting of US restrictions on its relations with Taiwan.

US Secretary of State Mike Pompeo announced earlier this month that his country would no longer restrict contact between his officials and their Taiwanese counterparts. China hit the decision and vowed to fight back.

China claims Taiwan – a democratic and self-governing island – is its territory that will one day have to be reunited with the mainland. and insists that the island has no right to participate in its own international diplomacy. The Chinese Communist Party has never ruled Taiwan.

Experts have warned that Taiwan will remain a contentious issue in US-China bilateral relations. Former Australian Kevin Rudd, a longtime China observer, told CNBC last week that Pompeo’s move could provide an important foundation for US-China relations.

Rudd was referring to the “One China Policy”, the principle by which the US and the international community recognize that there is only one central Chinese government – under the Chinese Communist Party in Beijing.

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Business

China vaccine maker Sinopharm says chairman and a director resigned

A health worker shows a dose of the Chinese vaccine Sinopharm Covid-19 in a vaccination center in the Jordanian capital Amman on January 13, 2021.

Khalil Mazraawi | AFP | Getty Images

BEIJING – Sinopharm, a state-owned giant in coronavirus vaccine development in China, announced that its chairman resigned from the board on Tuesday.

The company cited personal reasons for Li Zhiming’s resignation, according to a release made for the Hong Kong-listed company. Li Hui, a member of the board of directors and the audit committee of Sinopharm subsidiary China National Medicines Corp., also resigned Tuesday for personal reasons.

In late December, Chinese authorities approved a vaccine being developed for general launch by a Beijing-based subsidiary of Sinopharm. According to state media, the vaccine had a 79.34% effectiveness after a Phase 3 test.

In early December, the United Arab Emirates said the vaccine was 86% effective.

There was no direct indication that the resignation was due to vaccination work. The company did not immediately respond to CNBC’s email request for comment.

Different countries have published different results on the effectiveness of a coronavirus vaccine from another Chinese company, Sinovac.

A WHO team is working with manufacturers of Covid-19 vaccines from Chinese pharmaceutical companies Sinovac and Sinopharm “to assess compliance with international quality manufacturing practices prior to a possible emergency listing by the WHO,” said WHO Director General Tedros Adhanom Ghebreyesus earlier this week.

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Business

U.S. Bans All Cotton and Tomatoes From Xinjiang Area of China

WASHINGTON – The Trump administration on Wednesday announced a ban on imports of cotton and tomatoes from China’s Xinjiang region, as well as all products made with these materials, citing human rights violations and the widespread use of forced labor in the region.

The move could have far-reaching implications for apparel and food manufacturers, many of whom have tried to distance themselves from the atrocities in Xinjiang but have struggled to ensure their supply chains are free of all raw materials from the region. The area is an important source of cotton, coal, chemicals, sugar, tomatoes and polysilicon, a component of solar panels, which are then fed to factories across China and around the world.

The ban allows customs officials to stop imports that they suspect are made with raw materials from Xinjiang, regardless of whether they are traveling to the US directly from China or any other country.

China has harshly attacked predominantly Muslim minority groups in far west of Xinjiang, including detaining a million or more Uyghurs, Kazakhs and other groups in camps and closely monitoring the rest of the population, human rights groups say.

Forced labor also appears to be widespread in the region. U.S. Customs and Border Protection said an investigation found numerous indicators of forced labor in Xinjiang, including debt bondage, restricted mobility, withheld wages and abusive living and working conditions. The Chinese government denies the existence of forced labor in Xinjiang and states that all agreements are voluntary.

Scott Nova, executive director of the Workers Rights Consortium, a labor rights group, described the ban as “a high decibel wake-up call for any clothing brand that continues to deny the proliferation and problem of forced labor cotton” in the region.

“This ban will redefine how the clothing industry – from Amazon to Nike to Zara – sources its materials and workers,” said Nova. “Any global clothing brand that is neither from Xinjiang nor planning a very quick exit is campaigning for a legal and reputational disaster.”

The Workers Rights Consortium estimates that American brands and retailers import more than 1.5 billion garments each year that use Xinjiang materials, representing more than $ 20 billion in retail sales. China is also the world’s largest tomato producer, with Xinjiang making up most of that production, the group said.

Independent researchers and media reports have linked dozens of the world’s best-known multinationals with workers or products from Xinjiang, including Apple, Nike, Kraft Heinz and Campbell Soup.

Some textile and clothing companies that used Xinjiang cotton or yarn have announced that they will separate ties, including Patagonia, Marks and Spencer, and H&M. However, many companies have found it difficult to identify the origin of all products used by their Chinese suppliers investigate, particularly given the lack of independent auditor access to facilities in Xinjiang.

The contract will “send a crystal clear message to the trading community: know your supply chains,” said Mark Morgan, acting commissioner for US Customs and Border Protection. Importers need to ensure that their own supply chains are free of forced labor, he added. “It’s the law.”

The Trump administration has added increasingly restrictive measures to Xinjiang, including sanctions against dozens of companies and individuals for alleged human rights abuses.

In December, customs officials announced a ban on cotton products from the Xinjiang Production and Construction Corps, an economic and paramilitary group that produces much of the region’s cotton. U.S. Customs and Border Protection has already arrested 43 shipments worth more than $ 2 million under the ban, officials said on Wednesday.

Congress is also considering sweeping legislation that would block imports from Xinjiang unless companies can demonstrate that supply chains in the region are free from forced labor.

While the United States has taken the most vigorous action on this front, both Canada and Britain this week put rules in place to prevent Xinjiang-related goods from entering their countries.

Despite growing concerns about Chinese practices in the region, Xinjiang’s exports to the US and Europe increased significantly from 2019 to 2020, according to the Center for Strategic and International Studies.

However, trade experts say the new measures will raise questions about whether customs officials will be able to fully enforce such a sweeping ban that requires tracing Xinjiang materials through supply chains around the world.

A report released in October by the US Government Accountability Office found that customs faced staff shortages and other problems despite a new department and new resources to block goods made using forced labor.

Speaking to reporters on Wednesday, Brenda Smith, the deputy commissioner for the Trade and Border Protection Bureau, said it was “a challenge to relate what we see in a port of entry to the raw materials produced in Xinjiang. “The department is using new tracking methods to uncover products made using forced labor, she said.

The department is increasingly using new technologies such as pollen analysis to try to identify cotton and other materials from Xinjiang in overseas products.

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Health

China Locations Over 22 Million on Lockdown Amid New Covid Wave

When a handful of new coronavirus cases emerged in a province around Beijing earlier this month – apparently spread at a wedding reception in the village – the Chinese authorities took action.

They locked down two cities with more than 17 million people, Shijiazhuang and Xingtai. They ordered a crash test regime for almost every resident, which was completed within a few days.

They stopped transportation and canceled weddings, funerals and, most importantly, a conference of the Communist Party in the province.

This week, the locks were expanded to include another city on the outskirts of Beijing, Langfang, and a county in Heilongjiang, a northeastern province. The districts in Beijing, the Chinese capital, were also closed.

In total, more than 22 million people have been ordered to stay in their homes – twice as many as last January when the Chinese central government locked Wuhan, the downtown area where the virus was first reported, in what was considered exceptional at the time.

The flare remains small compared to the devastation in other countries, but it threatens to undermine the country’s Communist Party’s success in fighting the virus, sending the economy back on track after last year’s slump and the population comes back close to normal life.

The urgency of the government’s current response contrasts with that of officials in Wuhan last year, who feared a backlash if they exposed the mysterious new diseases that then emerged. Local officials had held a Communist Party conference there, but it has now been canceled in Hebei despite knowing the risk of the disease spreading among the people.

Since Wuhan, authorities have created a playbook that mobilizes party cadres to respond quickly to new outbreaks by sealing off neighborhoods, running extensive testing, and quarantining large groups if necessary.

“In the prevention and control of infectious diseases, one of the most important points is to seek the truth from facts, to openly and transparently share epidemic information and never to allow it to be covered up or underreported,” said Chinese Premier Li Keqiang at a meeting on Friday the State Council, China’s Cabinet.

China, a country of 1.4 billion people, has reported an average of 109 new cases per day over the past week, according to a New York Times database. Those would be welcome numbers in countries where things are far worse – including the United States, which averages more than 250,000 new cases a day – but they’re the worst in China since last summer.

China’s National Health Commission has not reported any new deaths, but the World Health Organization, using information from China, has recorded 12 so far in 2021. The National Health Commission did not respond to requests to explain the discrepancy.

In Hebei, the province where the new outbreak has concentrated, officials declared a “state of war” last week with no signs of an early lifting.

During the pandemic, officials were particularly concerned about Beijing, home to the central leadership of the Communist Party. Last week, Hebei Party Secretary Wang Dongfeng pledged to ensure that the province is “the moat for Beijing’s political security.”

The outbreaks, which have occurred with minimal cases after such a long time, have heightened concern across China, where residents in most places felt the pandemic was a thing of the past.

New cases have also been reported in northern Shanxi Province and northeastern Heilongjiang and Jilin provinces. Shanghai urged residents not to leave the city on Wednesday, announcing that those who had traveled to risk areas would be quarantined for two weeks and only leave after two tests, while those who had traveled to areas with At the highest risk, government facilities were quarantined.

Updated

Jan. 13, 2021, 9:04 p.m. ET

Rumors swirled in Wuhan that the city might face another lockdown; While these appeared unfounded, the officials noticeably tightened temperature controls on some streets.

In Shunyi, a district in northeast Beijing that includes Beijing Capital International Airport and rural villages, residents have been ordered to stay indoors since a spate of cases just before the New Year. At Beijing’s main train stations, workers sprayed disinfectant in public spaces.

After a taxi driver tested positive in Beijing over the weekend, authorities tracked down 144 passengers for additional tests, according to The Global Times, a state tabloid. Now anyone who gets into a taxi or car service in Beijing has to scan a QR code from their phone so that the government can quickly track them down.

The government has pushed ahead with plans to vaccinate 50 million people before next month’s New Year celebrations, a holiday that traditionally hundreds of millions of people cross the country to visit their families. More than 10 million cans had been distributed by Wednesday.

Despite the vaccinations, officials have already warned people not to travel before vacation.

“If these measures are well implemented, it can ensure that there is not a major epidemic recovery,” Feng Zijian, deputy director of the Chinese Center for Disease Control, said at a briefing in Beijing on Wednesday.

While the new restrictions have pestered millions, there doesn’t seem to be any significant public opposition to them.

“In my opinion, measures like a city-wide lockdown are actually pretty good,” said Zhao Zhengyu, a Beijing university student who now lives in her parents’ home in Shijiazhuang, where she was on winter hiatus when the outbreak broke out there.

Many in the city feared a repeat of Wuhan’s lockdown, but it sounded unimpressed.

Ms. Zhao’s parents now work from home and only collect groceries from a market in their residential area. She complained that she couldn’t meet friends or study in the library, but said that online learning had become routine.

“Maybe we’ve gotten used to it,” she said.

The response underscored how quickly the government is mobilizing its resources to contain outbreaks.

After the lockdown was announced in Shijiazhuang on January 6, authorities collected more than 10 million coronavirus test samples over the next three days – almost one for every resident, officials said at a press conference in the city. These tests gave 354 positive results, although some of the cases were asymptomatic.

A second round of mass nucleic acid testing began on Tuesday.

“In fact, this is a kind of war system – that uses wartime social control in peacetime – and that war system works during a pandemic,” said Chen Min, a writer and former newspaper editor who goes by the pseudonym Xiao Shu. Mr. Chen was in Wuhan last year when the city was locked down.

The way the country was governed gave him the means to fight the epidemic – even if some measures seemed excessive.

“Chinese cities are enforcing housing systems – smaller ones have hundreds of residents, large ones tens of thousands – and if you close the gates you can lock in tens of thousands of people,” Chen said in a telephone interview. “If you run into this type of problem now, you will surely use this method. That would be impossible in western countries. “

Chris Buckley and Keith Bradsher contributed to the coverage. Claire Fu contributed to the research.

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Health

Extra elements of China lock down as virus circumstances spike forward of WHO go to

A resident is undergoing a Covid-19 coronavirus test as part of a mass test program in the basement of a residential area after new cases of the virus emerged on January 12, 2021 in Shijiazhuang, central China’s Hebei Province.

STR | AFP | Getty Images

BEIJING – Local authorities in areas near Beijing tighten restrictions on social activities as coronavirus cases rise.

The city of Langfang, which is about 1.5 hours south of downtown Beijing, urged its nearly 5 million residents on Tuesday to stay home for the next seven days. The city is located in Hebei, the same province as Shijiazhuang, a city of 11 million that closed late last week after a surge in coronavirus cases.

Shijiazhuang reported 39 new confirmed cases on Monday while Langfang disclosed one. This brings the total number of currently confirmed and asymptomatic cases in Hebei Province to more than 500 people.

Separately, two regions in the northernmost Chinese province of Heilongjiang announced lockdowns on Tuesday. The province reported one new confirmed case and 36 asymptomatic cases for Monday.

Beijing reported a confirmed case on Monday. Since mid-December, the city has reported a handful of cases in close succession, leading to tighter restrictions on some residential complexes and mass testing on the outskirts of the country’s capital.

It was not immediately clear to what extent the local economy would be affected as there was no official order to stop work. Heilongjiang accounted for just over 1% of China’s GDP in 2019, and Hebei about 3.6%. Neither of the two provinces is as economically important as the one in southeast China.

Representatives from European and American business associations in China said members were not significantly affected by the recent surge in virus cases. Economic activity generally slows in late January through February as hundreds of millions of workers return to their hometown for the New Year celebrations.

However, some provinces have started to announce bans on large-scale gatherings and events. The central government is encouraging people to remain in custody during the New Year holiday, which officially takes place in mid-February this year.

“The worsening coronavirus situation will affect economic activity and markets may need to soften expectations for strong pent-up consumer demand in the upcoming LNY holidays in mid-February,” Ting Lu, Nomura’s chief economist, said in a statement on Monday .

“With the virus situation worsening and the coldest winter in decades, the growth recovery has lost some of its momentum in recent weeks,” he said. “A full recovery in the services sector could be delayed, as weaker PMI indices for services suggest in December.”

Both official and private polls for the past month showed that the Purchasing Managers’ Index (PMI) for services remained in the expansion area but declined from November.

China’s economy contracted 6.8% in the first quarter of last year when authorities shut down more than half of the country to control the outbreak.

WHO team begins investigation

Covid-19 first appeared in the Chinese city of Wuhan in late 2019. Authorities locked the city until the end of January 2020, but the disease soon spread to the rest of the world in a global pandemic. The coronavirus has since infected more than 90 million people and killed over 1.9 million people worldwide.

A team from the World Health Organization will come to China on Thursday to study the origins of the virus with local scientists. WHO said the study would begin in Wuhan.

A separate WHO team is working with manufacturers of Covid-19 vaccines from the Chinese pharmaceutical companies Sinovac and Sinopharm “to assess compliance with international quality manufacturing practices before the WHO lists potential emergencies,” said WHO Director General Tedros Adhanom Ghebreyesus.

Beijing has resisted the idea that Covid-19 came from China. After the domestic spread of the virus stalled in March last year, authorities have blamed foreign sources for later spikes.

For the most recent outbreak, Hebei Province started reporting cases about 10 days ago. On Sunday, an epidemiologist from the provincial disease control center told reporters that the cases likely came from foreign sources that were in contact with the province prior to December 15.

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Business

China Points New Guidelines Aimed toward Trump’s Sanctions

China fired back against the Trump administration on Saturday with new rules that would punish global corporations for complying with Washington’s tightened restrictions on doing business with Chinese companies.

The Chinese Ministry of Commerce said the rules, which came into effect immediately, were intended to counter foreign laws that “unfairly prohibit or restrict” people or companies in China from doing normal business. She said her actions are necessary to protect China’s national sovereignty and security, and to protect the rights of Chinese citizens and corporations.

Although Chinese officials didn’t mention a specific country, the new rules could potentially put global corporations in the middle of the Washington-Beijing economic struggles. They could also send a signal to the future administration of President-elect Joseph R. Biden Jr., who ultimately has to decide whether to maintain, relax, or reconsider the Trump-era restrictions on Chinese companies.

As President Trump’s trade war against Chinese intensified, the Trump administration banned the sale of American technology to Huawei, the Chinese telecommunications giant, and other companies. Rules have also been passed punishing companies for their links with the Chinese military and for their involvement in Beijing’s surveillance and repression of predominantly Muslim ethnic minorities in northwest China’s Xinjiang region.

The new rules, released on Saturday, would allow Chinese officials and corporations to push back those who comply with these U.S. limits. The Chinese measures allow government officials to issue orders that companies are not required to comply with certain foreign restrictions.

Chinese companies that suffer losses as a result of another party’s compliance with these laws can seek damages in Chinese courts, according to the Ministry of Commerce. Such a case would likely lead to a victory for a Chinese plaintiff, as China’s courts are ultimately responsible to the Communist Party.

“This basically puts a lot of big companies between a rock and a hard place as they have to choose either to comply with US sanctions or comply with Chinese rules,” said Henry Gao, a Singapore Management University law professor who specializes in international Specialized in trading. “And either way, they’re going to lose one of their biggest markets.”

Economy & Economy

Updated

Jan. 8, 2021, 4:48 p.m. ET

It is unclear whether global companies in China will be penalized for complying with US sanctions. Under the rules enacted on Saturday, companies could apply to the Department of Commerce for a waiver to comply with American restrictions. They also require Chinese officials to set up an interacting body to determine which foreign laws fall within their scope.

In addition, much of the language of the regulation released on Saturday was vague, giving the Chinese government and businesses leeway for compliance. Still, the threat could lead large American companies doing business in China to press Mr. Biden to ease restrictions on Chinese companies. Mr Biden has not said whether he intends to press ahead with Mr Trump’s punitive actions that have contributed to the most toxic China-United States relationship in decades.

“China wants to stop the new administration from behaving like Trump,” said Professor Gao.

Under Mr Trump, Chinese companies found their access to the American market increasingly restricted. The government has banned companies around the world from using American software or machines designed by Huawei to make chips. It has imposed sanctions and blacklisted Chinese companies for systematic human rights abuses against Uyghurs and other Muslim ethnic minorities in Xinjiang.

Earlier this week, under pressure from the Trump administration and members of Congress, the New York Stock Exchange removed three major state-owned telecommunications companies from the stock exchange to comply with an executive order aimed at halting American investment in EU-affiliated companies in the Chinese military.

The new rules come just days after Secretary of State Mike Pompeo threatened additional sanctions against any person or organization involved in the recent round-up of dozens of pro-democracy figures in Hong Kong. It is not clear to what extent the new rules on restrictions might apply to Hong Kong, the Chinese city governed by its own laws but where Beijing has taken an increasingly stronger hand.

China has responded to American tariffs and sanctions with its own steps, but its actions have not been one-to-one. The United States is buying far more from China than it is selling to China, leaving Beijing with fewer opportunities to tax American goods.

The company also relies heavily on American products, including chips and software, and its economy depends in part on factories that manufacture goods for large American companies like Apple and General Motors.

Beijing has said little about its promise in 2019 to compile an “unreliable list” of foreign companies and individuals that could lead to further restrictions on business.

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World News

China Exerts a Heavier Hand in Hong Kong With Mass Arrests

Legislators are given “the right to reject government-introduced budgets,” said Civil Dem Rights Front, a pro-democracy group. “In the primaries, candidates only exercised their right to debate their political stance, and voters were free to choose those who were in their favor.”

But Mr Tong, the cabinet member, said these rights could not violate national security. “At first sight,” he said, “it is the legislature’s right to veto the legislation,” but when you think about it more it is not. “

Deliberately vetoing proposals without actually considering them would constitute a violation of the legislature’s obligations, he added.

Officials have indicated that their work is far from finished. A senior police chief told reporters Wednesday that officials may make further arrests in connection with the primaries. The Liaison Office of the Central People’s Government, Beijing’s official arm in Hong Kong, called for vigorous enforcement of the law.

“Only when the Hong Kong National Security Law is fully and accurately implemented and firmly and strictly enforced can national security, social stability and public peace in Hong Kong be effectively guaranteed,” the bureau said in a statement.

Perhaps the clearest sign of Beijing’s desire to exercise its power was who the authorities arrested.

As of Wednesday, those arrested under the national security law were mostly prominent activists or people who openly demonstrated against the government, such as a man who collided with police officers on a motorcycle at a rally, or students whom police said the police had called professional -Independence slogans.

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China response on delisting of Chinese language firms on New York Inventory Trade

A woman adjusts a Chinese flag near US flags.

Ng Han Guan | AFP | Getty Images

We’ll have to see if the Chinese government will retaliate against the US. But I think the actual things to be done won’t matter …

Ronald Wan

non-executive chairman at Partners Financial Holdings

When asked if more Chinese companies could be delisted, Brendan Ahern, chief investment officer of the investment firm KraneShares, said: “I don’t see any expansion of these three specific names just because it was really driven by this executive order.”

Speaking to CNBC’s Squawk Box Asia on Monday, he said the order could “reverse course” after President-elect Joe Biden was sworn in on Jan. 20.

He added that on the Chinese side, Beijing “wants the Biden government to really start the relationship over.”

Ronald Wan, non-executive chairman of Partners Financial Holdings, added that the measures Beijing is taking are unlikely to be “significant”.

“We’ll have to see if the Chinese government will retaliate against the US. But I think the actual actions won’t matter, which may restrict some type of US government-affiliated company, activity in China or Hong Kong. But I think the government is still welcoming US capital and funds to get into the Asian and Hong Kong markets, “he told CNBC’s Street Signs Asia on Monday.

Ahern said investors in the three US-listed stocks – China Telecom, China Mobile and China Unicom – will be able to convert them into their Hong Kong-listed stocks.