MORE POLICIES ANNOUNCED TO BOOST ECONOMY

China announced new debt financing plans and additional rate cuts after the quarterly economic contraction in order to limit the effects of the novel coronavirus pandemic and ensure that the economy is better placed to recover, according to officials and analysts.

The Ministry of Finance announced on Monday it would raise the front-loaded quota of local government special bonds by another 1 trillion yuan ($141.3 billion). Issuance of the increased quota should be finished by the end of May. Most of the debt is for infrastructure construction projects.

On the same day, the People's Bank of China, the central bank, cut the benchmark lending rate−the loan prime rate−by 0.2 percentage point. It was the largest cut since the rate was launched in August 2019. Experts said the move is to lower financing costs for government and corporate sectors and accelerate business resumption.

China's top-level policymakers held a meeting on Friday in which they said the country will use stronger macro policy tools to cushion the economic fallout. In the first quarter, China's GDP fell 6.8 percent year-on-year amid lockdowns, while indicators suggested a substantial recovery of business activities in March.

The sudden virus outbreak had an "unprecedented impact" on China's economic and social development, which was "extremely unusual" in the first quarter, said a statement issued after the meeting of the Political Bureau of the Communist Party of China Central Committee.

The meeting was presided over by Xi Jinping, general secretary of the CPC Central Committee. It called for more proactive fiscal measures, including raising the fiscal deficit ratio, issuing special central government bonds and increasing the quota of local government bonds, to help stabilize the economy.

Monetary policies should be more flexible, leveraging policy tools such as cutting reserve requirement ratios and interest rates, as well as relending, to maintain reasonably ample liquidity and guide the market lending rates to decline. Capital should be channeled into the real economy, especially to support medium, small and micro enterprises, the meeting stressed.

As the COVID-19 pandemic spreads around the world, experts highlighted risks of prolonged external challenges, and called for more policy support for business resumption, especially to assist small and medium-sized enterprises with financing difficulties and accelerate the boosting of infrastructure investment.

"Economic recovery is expected to continue and to show up in the GDP data from the second quarter onward as more progress is made with the return to economic normalcy," said Louis Kuijs, head of Asia Economics at Oxford Economics, a British think tank. "But the upturn will be slowed down by lingering consumption weakness and sliding foreign demand."

"The stance of policymakers is key. So far, policy easing has remained modest. While we see more measures in the coming months, we don't expect large stimulus," he said.

In the first three months, the government's general budgeted revenue dropped by 14.3 percent from a year earlier to 4.6 trillion yuan, with a sharper decline in tax income of 16.4 percent, influenced by business shutdowns and tax relief measures, according to data released by the Ministry of Finance on Monday.

"Fiscal income may continue to drop in the second quarter, but the decline is decelerating along with the economic recovery," said Liu Jinyun, an official at the ministry who also disclosed that governments at all levels had spent about 145.2 billion yuan as of Sunday to contain the virus and its effects.

RISK RISING OF IMPORTS OF VIRUS VIA LAND BORDER

Despite a downward trend in new novel coronavirus cases found in inbound travelers, China is not easing border controls and will further ramp up epidemic control capabilities at border cities.

The Chinese mainland reported 12 new confirmed infections on Sunday, including eight detected in inbound travelers from overseas. A total of 841 patients with imported cases were hospitalized for treatment as of Sunday, with 43 in severe condition and no fatalities, according to the National Health Commission.

Commission spokesman Mi Feng said on Monday that the number of existing imported cases nationwide had been declining consistently in the past week, but the risk of new infections entering through the country's land crossings is increasing, giving rise to locally transmitted clusters of infection.

"We need to resolutely guard our borders and key border cities, improving their testing and treatment capacities, overcoming shortcomings and strengthening personal protections to cut off the spread of the virus," he said at a news conference.

The vulnerability of the country's land borders was thrust into the spotlight when a sudden increase in imported cases was detected in the land crossing at Suifenhe, Heilongjiang province, on China's border with Russia.

The city saw four new imported cases on Sunday among Chinese nationals entering from Russia via the port, according to the provincial health commission. A total of 375 imported infections had been reported as of Sunday and another 26 asymptomatic cases are under medical observation.

Other border cities also are susceptible to new waves of infection from overseas as the virus continues to spread globally, and stepping up their preparedness is crucial, health officials have said.

Zhou Yuhui, deputy director of the commission's disease prevention and control bureau, said some regions near land borders with Myanmar and Vietnam have inadequate epidemic control capabilities and lack laboratory testing equipment, epidemiologic survey techniques and treatment tools.

Most of China's land crossings with these two countries are located in Yunnan province and the Guangxi Zhuang autonomous region.

"The pressing task for local authorities is to formulate targeted disease control strategies based on the latest developments, and identify and rectify weak spots," he said. "Each city must put forward its own epidemic response plan."

He added that provincial-level governments are responsible for assembling and dispatching medical materials to ensure enough anti-virus resources for such cities. National authorities will step in to provide assistance−including sending expert teams and delivering medical and protective equipment−to areas with many incoming visitors or those with inadequate preparation.

Liu Haitao, director of the National Immigration Administration's border inspection department, said the administration is also closely monitoring the epidemic situation in bordering countries to feed information to its risk evaluation mechanism.

"We are also strengthening cooperation with bordering countries' immigration control authorities and convincing them to take aligned and coordinated border control measures with us," he said.

The administration will continue to reduce cross-border movement to the minimum and increase patrols along main entry points as well as small pathways, he added.

In order to boost nucleic acid testing at entry points, the General Administration of Customs has promptly purchased new testing kits and allocated them to key border areas while adding manpower.

Song Yueqian, deputy director of the administration's quarantine department, said that recently, nine new laboratories certified to conduct diagnostic testing of the novel coronavirus have been set up and more than 400 technicians have been deployed to assist in expanding testing.

SHAPE GLOBAL NARRATIVES FOR TELLING CHINA'S STORIES

In the past 70 years since the founding of New China, the Chinese people have created the miracles of rapid economic development and long-term social stability. Insightful people around the world have expressed admiration for what has been achieved.

However, there are still some people in the world who have little knowledge of and even misunderstandings and prejudices about China's development. Since the launch of reform and opening-up in 1978, China has been embracing the world, learning from the world, integrating into the world and making contributions to the world, in the hope of achieving win-win cooperation with all countries and promoting self-development as well as common development with the rest of the world. This process is still ongoing, and we need to better convey China's views and make China's voice heard so that more people can understand China.

Since the 18th National Congress of the Communist Party of China in late 2012, President Xi Jinping has attached great importance to the country's international communication and repeatedly stressed in his speeches that we should better tell China's stories and strengthen China's voice in the international arena. To do this, we should grasp the profound connotations of China's stories and master effective ways to tell China's stories to actively increase China's voice, enhance the international community's recognition of China's development and present to the world an authentic, multi-dimensional and comprehensive picture of China.

Under the guidance of Xi Jinping Thought on Diplomacy, China has made remarkable progress in promoting communication with the world since the 18th Party Congress. We have put forward China's policy positions and introduced important initiatives on many occasions, demonstrating our support for economic globalization and multilateralism, and presenting China's voice to the world.

CHANG TO STEP DOWN AS CEO OF NBA CHINA

Derek Chang will step down as the CEO of NBA China, it was announced by NBA deputy commissioner and chief operating officer Mark Tatum.

Chang, who has been in his current role since June 2018, will continue to lead NBA China through May 15 after which he will return to his family in London.

A search for a new CEO of NBA China is underway.

"We are thankful for Derek's many contributions leading our business and colleagues in China, including during a time of unprecedented challenges," said Tatum. "Derek's vast sports and media experience led to new and expanded partnerships with some of China's most recognizable companies. We wish him and his family all the best.

"It's been a privilege to be part of the NBA family and to experience firsthand the excitement that fans in China have for the game of basketball and the NBA," said Chang. "I am very proud of what we were able to accomplish over the last two years and wish my colleagues well going forward."

During Chang's tenure, the NBA expanded its partnerships with Tencent, Alibaba and Vivo and launched new partnerships with digital media companies ByteDance and China Mobile Migu.

Under Chang's leadership, the league opened the largest NBA Store outside North America, in Beijing, the world's first NBA Center, an NBA-themed lifestyle complex in Tianjin, as well as eight other interactive NBA-themed destinations across the country for fans of all ages. Chang also managed the league's long-standing relationships with CCTV and BesTV and oversaw four NBA China Games in 2018 and 2019.

Prior to joining the NBA, Chang held senior executive positions with Scripps Networks Interactive, DIRECTV, Charter Communications, the YES Network and TCI Communications and served on the board of directors of Starz after its public spin-off.

Chang holds an MBA from Stanford University and a bachelor's degree in history from Yale University. He was named one of Cablefax magazine's "Top 100 Executives in Cable" and one of the "50 Most Influential People in Sports Business" by Sports Business Journal.

WUHAN GIVES ITS SHOPPERS COUPON BONUS

The main shopping areas in Wuhan, Hubei province, continued to enforce strict epidemic control measures over the weekend as the number of shoppers increased after the city government started to distribute discount coupons to stimulate consumption.

At noon on Sunday, the Wuhan government distributed 30 million yuan ($4.23 million) in consumption coupons that can be used in shops, supermarkets, restaurants and tourist and cultural sites citywide via major digital platforms, including Alipay and WeChat.

Eventually, the city government will distribute 500 million yuan in such coupons to revive the local economy hit hard by the novel coronavirus outbreak. About 18 million yuan of the vouchers have been designated for the registered low-income people in the city.

People were only allowed to choose one type of coupon to receive discounts ranging from 10 to 80 yuan depending on the amount that they spend. Coupons for supermarkets are the most popular. They were all gone within 45 seconds since they became available on Alipay, the company said.

Statistics from Alipay show that more than 40 cities across the country have issued coupons since March 13 to encourage people spend more. The move has already leveraged consumption worth over 10 billion yuan.

Distributing coupons can better stimulate consumption in China than directly giving people money, as has been done in some countries, like the United States, said Huang Manyu, professor of the economy and trade department of Zhongnan University of Economics and Law.

"Chinese people have the habit of saving, so they may save the money without spending it. Then it won't help to achieve the goal of stimulating consumption," Huang said.

People in Wuhan can redeem the first set of coupons from Monday to April 29. From April 30, the coupons will be distributed weekly. Visitors to the city are also eligible to collect the coupons.

"It's a sign that the city is recovering at a faster pace. Also, people are confident enough to come to the crowded shopping areas because of the strict epidemic control measures in public areas," said Liu Qiqi, a high school teacher who came to Han Street, a popular shopping area in central Wuhan, on Sunday.

The shopping area was among the first group of shopping malls and areas in Wuhan to open to shoppers on March 30 after strict epidemic control measures were put in place. All commercial areas in Wuhan were closed after the city, which was the hardest hit by the outbreak in China, was put under lockdown on Jan 23.

People are required to present their "green code", an indication they are symptom-free, on a health code app on their phones and have their temperature checked at the entrance of the shopping area.

Liu, 28, came to find out which shops accept the government issued vouchers. She was pleased to see that her favorite sportswear store was among them.

"I didn't expect to see this amount of people today, but there were still far fewer people compared to what it was like before the outbreak during weekends," Liu said.

On Sunday afternoon, people had to line up in front of some Han Street shops that decided to limit the number of shoppers inside as a part of the epidemic control measures. Some shops also have been displaying epidemic control items such as masks and hand disinfectant near their entrances to attract customers. Meanwhile, majority of the restaurants in the shopping area still only offer take-out and delivery services.

XI INSPECTS NORTHWEST CHINA'S SHAANXI PROVINCE

Xi Jinping, general secretary of the Communist Party of China Central Committee, on Monday inspected Northwest China's Shaanxi province.

Xi went to Niubeiliang National Nature Reserve in the county of Zhashui, Shangluo city, to inspect ecological preservation of the Qinling Mountains.

He then went to the village of Jinmi in Xiaoling township to learn about poverty alleviation efforts.

THOUGHT FOR THE DAY

New ideas pass through three periods: It can't be done. It probably can be done, but it's not worth doing. I knew it was a good idea all along! - Arthur C. Clarke