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China Reports No New Locally Transmitted Coronavirus Cases Outside Epicentre (Reuters, 5 min read) Despite an absence of new COVID-19 cases outside Hubei for two days the authorities are advising people to remain “cautious”. The airport remains closed and activity is still a fraction of normal levels.
Will the Coronavirus Topple China’s One-party Regime? (ASPI Strategist, 3 min read) The disruption to daily life threatens to erode support for the Communist Party, particularly within China’s middle class. Should economic growth falter the support for the party could fall further.
China’s Continuing Credit Boom (Liberty Street Economics, 5 min read) China’s rapid debt build up over the past 15 years may be even higher than official data suggests with loans swapped for municipal bonds currently excluded. Reduced efficiency of credit and a greater reliance on non-deposit financing add to the risks. But the country’s huge savings and fx reserves leave significant buffers.
Proposed Residency Changes Spark Racist Backlash in China (Sixth Tone, 6 min read) Chinese citizens have reacted with hostility to a proposed relaxation of requirements for foreigners to obtain permanent residence. Social media forums have warned against increase crime and perception of preferential treatment of foreigners.