China has reinforced its central emergency response law in response to the increasing frequency of extreme weather events, such as heavy rainfall, downpours, and drought. The revised Emergency Response Law, which was adopted on Friday, aims to strengthen central mechanisms for warning, reporting, and handling natural disasters, accidents, public health incidents, and public safety incidents. The law also focuses on improving the emergency distribution system of relief materials and enhancing energy security. The revision, which will take effect in November, includes increased penalties for failing to fulfill legal responsibilities during emergencies. The revision was prompted by China's experience during the Covid-19 pandemic, as the country has been grappling with the impact of extreme weather events on lives and the economy [f486e485].
China has been facing severe weather conditions, including floods, downpours, and drought-like conditions, which have had a significant impact on the country. The south, in particular, has been hit hard by heavy rainfall, resulting in dozens of deaths in Guangdong province. The National Meteorological Centre has issued its highest rainfall warning, and the weather office has warned of worse weather to come. In response to these challenges, the revised law aims to improve emergency response management and command systems, with clear responsibilities assigned to all parties involved. It also emphasizes the need for an enhanced, centralized, unified, efficient, and authoritative leadership system for emergency response work. The law includes provisions for the establishment of centralized emergency resource reserves, the development of a comprehensive emergency warning platform, and the prohibition of fabricating or spreading false information about emergencies. However, concerns have been raised that the law may restrict media reporting of natural disasters [f486e485].
China must improve its disaster prevention and mitigation capabilities to counter the impact of more frequent extreme weather events on agricultural production, according to a commentary published by the state-owned Economic Daily [ea82bd27]. Over the past 10 years, China has lost an average of more than 30 million tonnes of grain per year due to extreme weather events. Recent extreme weather events, such as heavy rains and flooding, have swamped large parts of China’s south this year, while the north is already experiencing high temperatures. The commentary suggests that China should use advanced technology to build effective disaster warning systems and reinforce the infrastructure of agricultural production and irrigation projects to boost resilience to extreme weather [ea82bd27].
China plans a three-year campaign to address safety risks after a year of accidents and disasters. The campaign will focus on improving response times during disasters and accidents, as well as addressing production safety lapses in sectors like mining. China experienced deadly natural disasters, mining accidents, fires, and gas explosions in the past year, raising concerns about safety protocols. The emergency management ministry called for mines to investigate hidden factors that cause disasters and implement measures to prevent floods and earthquakes. The ministry emphasized the need for stronger disaster prevention, mitigation, and relief efforts. The campaign will begin this year [e61e35b8].
China's National Development and Reform Commission (NDRC) has announced the selection of a second batch of public investment projects worth over 560 billion yuan ($140 billion) to boost the country's economy. These projects, including flood control and disaster relief programs, are part of a bond issuance and investment plan unveiled in October [9db8240a]. The NDRC has identified 9,600 flood control and disaster relief projects with planned investments of more than 560 billion yuan ($79 billion) under a $140 billion plan to boost the economy. The projects aim to improve China's flood control system, emergency response mechanism, and disaster relief capabilities [9db8240a] [ea1c5384].
China's economy is facing challenges in its post-Covid recovery, including subdued consumer demand, weak exports, declining foreign investment, and a deepening real estate crisis [c8e0cf66] [ea1c5384]. In an effort to address these challenges, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance for the fourth quarter. The move is aimed at boosting the economy and includes investments in flood control and disaster relief projects [ea1c5384].
China's debt crisis is looming as its total debt stock reaches nearly three times the size of its economy. The country's high savings rate and immense pools of capital give the government leeway to borrow, but it has also fostered a carefree spending pattern that is unsustainable. China's debt-fueled economic model is running out of road, and the authorities are searching for a solution. The country's export-led strategy is no longer viable as it has become too big to get away with it. The only way out is for China to boost consumption at home by reducing savings and increasing wages and welfare spending. However, politically, this is challenging as it would reduce the international competitiveness of Chinese firms and require government involvement in the business sector. China is facing an economic evolution that will test its leadership's ability to navigate the transformation [3647c952].
China's infrastructure development has led to mounting local-level debt and questions about investment costs. The upcoming central economic work conference will discuss investment decisions and economic growth targets for 2024. China's rapid infrastructure development has crammed decades worth of construction into a few decades, resulting in considerable debt and underused infrastructure. Many institutions, including the IMF, have called for a transition to a consumption-driven economic growth model. Some argue that investment remains important in the short term, but private investors are unlikely to invest in infrastructure projects due to local government finances. China's total fixed-asset investments grew, but private investment dipped. Beijing is prioritizing water-conservancy projects and welfare-enhancing projects that align with its philosophy of high-quality development [edf2ae67].
In addition to the public investment projects, local governments in China are planning to issue special bonds to fund urban renewal projects, affordable housing, and sectors such as infrastructure, energy, healthcare, and vocational training. However, analysts believe that the boost from these projects and special bonds could be limited, as private developers may not have the cash to commit to extra projects and the projects may not help the cash flows of local governments [b2f336a3].
China's infrastructure development and investment decisions are facing challenges and scrutiny. The country's rapid infrastructure development has led to mounting local-level debt and questions about the cost-effectiveness of investments. The upcoming central economic work conference will address investment decisions and economic growth targets for 2024. While investment remains important in the short term, private investors are hesitant to invest in infrastructure projects due to concerns about local government finances. China is prioritizing water-conservancy projects and welfare-enhancing projects that align with its philosophy of high-quality development. The IMF and other institutions have called for a transition to a consumption-driven economic growth model, but the government faces challenges in reducing savings and increasing wages and welfare spending without compromising the international competitiveness of Chinese firms. China is at a critical juncture in its economic transformation, and its leadership's ability to navigate the challenges will be tested [edf2ae67].
China has allocated over 800 billion yuan (approximately $140 billion) for public investment projects to address weak consumer demand, a struggling real estate sector, and a downturn in foreign investment. The projects will focus on enhancing flood control systems, emergency response, and disaster relief capabilities. China's regulatory body has also introduced strict rules to regulate spending and rewards in video games, impacting the global gaming market. China's economic rebound and long-term trajectory are projected to contribute to global economic growth in 2023. Angola plans to diversify its economy beyond oil and sees China as a vital partner. Former Credit Suisse CEO Tidjane Thiam has been elected as the leader of Ivory Coast's main opposition party. Chinese Foreign Ministry spokesperson Wang Wenbin expresses confidence in China's economic rebound and invites businesses worldwide to continue coming to China for global success [d53bf9dc].
Despite severe flooding caused by heavy rainfall, a couple in China's Guilin, Guangxi Zhuang autonomous region, forged ahead with their wedding ceremony. The bride, who had been caught in the flooding while on her way back from a nearby county, met a group of firefighters who helped her and her groom reach their town. The groom borrowed a home-made boat and, with the assistance of his father-in-law, pushed the boat for two kilometers through the waterlogged roads. The couple's determination to proceed with their wedding despite the challenging circumstances impressed observers, who praised their strong will and resourcefulness. The incident was captured on video and shared on social media, where it garnered attention and admiration [37bd16ef].