January 9, 2025 • 15 mins
China's virus outbreak spreads, the Yuan declines & inflation nears zero, plus we discuss China's C919 trying to disrupt the global dominance of Boeing and Airbus
China Update provides listeners with the most up to date political, economic, and geostrategic analysis on China - so that you are on top of the world's number 2 economy. These podcasts are based on hundreds of articles, think tank reports, government statements and other resources in English and Chinese every week. The views and analysis are all my own and I produce the podcasts.
My Patreon: https://www.patreon.com/chinaupdate
Disclaimer: China Update is not a financial advisory channel. While I take great care in researching everything discussed in these podcasts, nothing I say should be taken as investment advice. Please speak to a professional before making any investment decisions. #China
China Update provides listeners with the most up to date political, economic, and geostrategic analysis on China - so that you are on top of the world's number 2 economy. These podcasts are based on hundreds of articles, think tank reports, government statements and other resources in English and Chinese every week. The views and analysis are all my own and I produce the podcasts.
My Patreon: https://www.patreon.com/chinaupdate
Disclaimer: China Update is not a financial advisory channel. While I take great care in researching everything discussed in these podcasts, nothing I say should be taken as investment advice. Please speak to a professional before making any investment decisions. #China
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Happy Thursday, everybody. Welcome to another episode of China Update,
where I provide you with the most up to date political, economic,
and geostrategic analysis on the world's number two economy. My
name is Tony. Let's jump in, and unfortunately we need
to begin today's video once again with the concerning viral
outbreak situation in China. We've been following the outbreak of
(00:20):
HMPV virus in China for several days now. Reports of
a surge in cases of the respiratory virus in China
have evoked dark echoes of the start of COVID nineteen,
almost exactly five years ago, causing much disquietude around the world. However,
despite the surface similarities, this situation does seem quite different
(00:40):
for now, at least, as we have established in previous videos.
Over the last few days. One, China is seeing an
outbreak of HMPV and higher than usual rates of people
with flu symptoms are being seen across the country. Two.
This has caused serious strain on some hospitals, especially in
the colder north, but initial reports of hospitals being overwhelmed
(01:02):
by COVID era numbers of patients were exaggerations. My contacts
in northern China say that flu numbers are high but
still manageable. Three health experts argue currently at least that
there is a low risk of a global health emergency. Four. However,
the cases are spreading to neighboring countries and frankly now
(01:23):
around the world, and health experts in these countries are
following the situation in China very closely. We have been
following the situation very closely to here on China update,
and now we move through several salient updates on the situation. First,
we remind ourselves that HMPV is one of several pathogens
that circulate across the world each year, causing respiratory illnesses.
(01:46):
HMPV is common and causes symptoms much like those associated
with the flu and covid, including cough, fever, nasal congestion,
and weezing. HMPV is well studied and there is widespread
capacity to test for it. There is also broad population
level immunity to this virus. Globally, most HMPV infections are mild,
(02:08):
resembling bouts of the common cold, but severe cases can
result in bronchitis or pneumonia, particularly among infants older adults.
And immunocompromised people. Basians with pre existing lung conditions such
as asthma are at higher risk of severe outcomes. Beijing
has now acknowledged that HMPV cases are increasing, but have
(02:29):
emphasized that the virus is a known entity and that
it is not a major concern. Of course, after COVID,
many folks will be slow to trust Beijing's comments on
such things. State media has published a series of articles
this week telling the public not to panic, warning them
against blindly taking antiviral medications online. Many medicines have expressed
concern about the outbreak, but due to the sensitivity of
(02:51):
the situation, sensors have kept a tight leash on public
discourse around the matter. As for the WHO, the body
so far has not exp breast concern. On Tuesday of
this week, the organization put out a statement saying, quote
WHO is in contact with Chinese health officials and has
not received any reports of unusual outbreak patterns. In quote,
(03:12):
it added quote Chinese authorities report that the health care
system is not overwhelmed and there have been no emergency
declarations or responses triggered end quote. Of course, China said
exactly the same thing in December of twenty nineteen and
January of twenty twenty about COVID nineteen, so many will
be unwilling to take their word for it now. However,
my own on the ground visits to hospitals and feedback
(03:35):
from contacts in the north of the country especially does
suggest that the health care system is indeed not currently overwhelmed. Nevertheless,
there are growing calls around the world for China to
show more transparency. Doctor sanjayaz Nanayaki, a specialist in infectious
diseases at the Australian National University, for example, express yesterday
quote it is also vital for China to share its
(03:56):
data on this outbreak in a timely manner. This includes
epidemia logic data about who is getting infected. Also, we
will need genomic data confirming that h MVP is the
culprit and that there isn't any significant mutations of concern. Meanwhile,
the spread continues. Indonesia has started monitoring flights from China
(04:18):
and Malaysia amid concern over rising outbreaks in these countries.
Singapore said on Wednesday yesterday that it has witnessed a
spike in HMPV infections, but added that it was consistent
with expectations. It appears that cases are being found across
the world now, including in Europe and the UK, and
the US is now monitoring cases of the infections, with
(04:38):
the Centers of Disease Control and Prevention saying it is
currently looking at reports of increasing cases in the United States,
but played down any concern. We will continue following the
situation in a calm, cautious, and grounded manner here on
China Update. Make sure you are subscribed so you're on
top of these updates as they're released. Now let's move
to regular updates and we start with the economy, where
(05:00):
China has received some very concerning news. China's currency, the yemenbe,
has dropped to a sixteen month low against the US dollar,
reflecting economic concerns as the incoming Trump administration raises the
prospect of steep tariffs on Chinese exports. The onshore GERM
ANDB fell zero one percent to seven point three to
three per dollar on Wednesday yesterday, nearing the lower limit
(05:23):
of its trading band set by the People's Bank of
China China Central Bank. The decline follows strong U S
economic data, which has strengthened the dollar and dampened expectations
of rapid federal reserve rate cuts. In contrast, China continues
easing monetary policy to counter deflationary pressures. The US Dollar
index rose zero point five percent after Tuesday's Job and
(05:44):
Services data release. Analysts highlight that the ermenb's decline is
part of a broader trend of dollar strength, with other
Asian currencies such as the Thai BUTT and the Korean
I also weakening. The pressure on the R and B
is tied to fears that potential tariffs has high as
sixty percent proposed by President elect Donald Trump, could force
China to weaken its currency further to maintain export competitiveness. However,
(06:07):
the People's Bank of China has emphasized its commitment to
stabilizing the German B and avoiding exchange rate quote overshooting
in quote. Indeed, today Thursday, Beijing moved to ramp up
efforts to stabilize its currency by announcing a record sixty
billion yen eight point two billion UIST dollar bill issuance
in Hong Kong scheduled for January the fifteenth. This move
(06:27):
by the People's Bank of China aims to increase demand
for the yen overseas, tightened liquidity, and raise the cost
of shortening the currency. The issuance marks the largest since
the People's Bank of China began regular bill auctions in
Hong Kong in twenty eighteen. Beijing's efforts are aimed at
preventing disorderly capital outflows that could destabilize the economy further. However,
(06:49):
analysts like we Kon Chong of b in Why warn
that despite the People's Bank of China's actions, factors such
as the Yan's interest rate gap with the United States
and tariff uncertainties will continue to weigh on the currency.
As we have seen several banks predict that the currency
could weaken to as much as seven point five or
(07:10):
even worse this year. Meanwhile, in response to deflationary pressures
and weak consumer demand, Beijing has introduced measures like appliance,
trade and subsidies. We will discuss this in greater detail tomorrow.
There's just too much to cover today, but remains cautious
about border broader others spending plans, awaiting clarity on US
trade policies. However, this brings us to our next concerning
(07:32):
update for China's economy. Today Thursday saw the release of
the official consumer Price Index by the National Bureau of Statistics,
and even the official numbers are quite bad. China's consumer
inflation weakened further toward zero, decelerating for a fourth straight month,
in a major setback for the government's efforts to drive
up demand by injecting stimulus into the economy. The Consumer
(07:54):
Price Index rose just zero point one percent from a
year earlier the National Bureau of Statistics set on third day,
compared with a zero point two percent gain in the
previous month, and some suspects that it may have been negative,
but that a rate below zero percent would be too
politically incorrect. Factory deflation extended into its twenty seventh month,
(08:15):
just showing how China's supply side stimulus is simply deflating
prices and destroying profit margins for producers. The Producer Price
Index recorded a slower drop of two point three percent
year on year, but in a more encouraging sign for policymakers.
Core CPI, which excludes volatile food and fuel prices, picked
(08:37):
up for a third month to zero point four percent
from a year ago, reaching the highest levels since July
The persistence of deflationary pressures in China is in stark
contrast to other major economies, with elevated inflation risks flagged
by US Federal Reserve officials and Euro area price growth
accelerating last month. The worry for Bejing is that an
entrenched cycle of price decreases threatens to hold back households
(09:00):
spending for longer and damages corporate revenues so much that
it stifles investment and leads to further salary cuts and
layoffs to MBAR two. We look at this observation made
by Peaking University Professor of Finance Michael Pettis just a
few hours ago, quote, there were more signs today that
domestic demand in China isn't recovering in spite of all
(09:22):
the huffing and puffing over stimulus spending, consumer coupons, and
shopping events. CPI inflation in December was flat month on month.
Although this was much better at least than the negative
zero point six percent and negative zero point three percent
changes in November and October, it represents, nonetheless the fourth
month of zero to negative price changes on a year
(09:44):
or year basis. CPI inflation was zero point one percent,
in line with expectations. For twenty twenty four as a whole,
CPI inflation came in at a very meager zero point
two percent, the same as it was last year and
the lowest since two thousand and nine, for all the
stimulus and the surge and debt during the year. In
other words, China has been unable to revive inflation. With
(10:05):
PPI in December down two point three percent year on year,
roughly in line with what it's been all year. We
are almost certainly going to see a more negative GDP
DEFLEETA than last year's negative zero point five quotes. Next up,
we have one more development to cover, but just quickly.
If you're getting some value from today's episode of China Update,
I have a huge favor to ask. That is, just
(10:28):
to hit the like button. And if you have not
done so already and you find yourself watching more than
one of these episodes in the future, maybe consider subscribing
at the bell notification icons so you're on top of
the most up to date China analysis as it's released.
This channel is a one man band, but it's me
who writes, records, uploads, edits everything on the channel. I
(10:48):
rely primarily on subscribers support to keep going, so if
you'd like to help keep the channel financially sustainable, Patreon
and by Mere Coffee links are also in the description below.
Thank you so much. Now let's move on to the
final development for today. China is intensifying efforts to disrupt
the global dominance of Boeing and Airbus, as its state
backed aircraft manufacturer COMAC as international certifications for its first
(11:12):
domestically produced passenger jet, the C nine one nine. The
single aisle jet which took its maiden commercial flight in
twenty twenty three, currently operates domestically with China's major state
owned carriers, China Chinesestern Airlines and China Southern Airlines. In
a significant step, China Eastern Airlines began flying the C
nine one nine between Shanghai and Hong Kong and January
(11:33):
of this year, making its debut on a regular commercial
route outside of mainland China. By twenty twenty six, COMAC
aims to expand operations to Southeast Asia and secure European certification,
signaling its ambition to compete globally. The C nine one
nine project is central to General Secretary Shoomping strategy to
elevate China's position in high tech industries and challenge the
(11:54):
Western duopoli in aerospace manufacturing. The global aviation sector's ongoing
scone apply chain issues, compounded by Boeing's delays and financial difficulties,
provide a window of opportunity for new entrants like COMAC.
According to Airbus, global demand for single aisle aircraft is
expected to reach forty two thousand, fourre thirty units over
(12:15):
the next two decades, accounting for eighty percent of all
new planes. However, COMAC faces hurdles and achieving global certification
and providing robust maintenance support critical factors for international competitiveness.
While countries like Indonesia have shown interest, concerns about maintenance
and spere parts persist. Furthermore, gaining certification from regulators in
(12:36):
Europe and the United States remains challenging, especially amid geopolitical tensions.
These c nine to one nines reliance on Western main components,
including engines from CFM International, underscore its dependency on global
supply chains, and thus believe that while COMAC may not
capture a significant share of the global market in the
near future, it will serve as a key player in
(12:57):
China's import substitution strategy the gradually reducing reliance on foreign
aircraft for domestic needs. Meanwhile, and on this general theme,
China's three largest state owned airlines, Air China, China Eastern
and China Southern, are rapidly expanding their European routes, leveraging
the ability to fly over Russian airspace to gain a
cost advantage over Western carriers. In contrast, many European airlines,
(13:21):
including Luftanza, British Airways and Virgin Atlantic, have reduced diregg
flights to China due to high costs associated with avoiding
Russian airspace, as UK based The Financial Times reports this week.
Since Moscow's twenty twenty two ban on most European airlines
lying over its territory, Chinese airlines have stepped in to
fill the gap. Passenger seat capacity between China and Western Europe,
(13:42):
as measured in available seat climeters, rose by eighteen percent
in October twenty twenty four compared to the same period
in twenty nineteen. These carriers also offer tickets five percent
to thirty five percent cheaper than their European counterparts, further
undercutting competition. Despite this growth, China's aviation industry faces challenges.
Three carriers collectively reported losses of thirteen point three billion
(14:05):
yen one point eight billion US dollars in twenty twenty three,
with economic pressures and domestic competition weighing heavily on profitability.
Analysts anticipate similar losses in twenty twenty four. While some
Western airlines have pointed to weak demand for Chinese flights,
Data show's international passenger numbers for the big three Chinese
carriers nearing pre pandemic levels finally, after several years of
(14:27):
falling behind. Additionally, flights to the Middle East have surged,
reflecting growing business ties between China and golf nations. Critics argue, however,
that Chinese airlines benefit from government support, subsidies and a
cost advantage over Russia. Indeed, with strong robust government support,
these state owned enterprises, even if they do not find
a path to profitability in twenty twenty five, are not
(14:49):
going to go bankrupt. The state will ensure that they
continue operating even at a loss. Okay, that is today's
episode of China Update. Thank you so much everybody for watching.
Have a good Thursday, and I will see you all tomorrow,
Happy Thursday, everybody. Welcome to another episode of China Update,
where I provide you with the most up to date political, economic,
and geostrategic analysis on the world's number two economy. My
name is Tony. Let's jump in, and unfortunately we need
to begin today's video once again with the concerning viral
outbreak situation in China. We've been following the outbreak of
(00:20):
HMPV virus in China for several days now. Reports of
a surge in cases of the respiratory virus in China
have evoked dark echoes of the start of COVID nineteen,
almost exactly five years ago, causing much disquietude around the world. However,
despite the surface similarities, this situation does seem quite different
(00:40):
for now, at least, as we have established in previous videos.
Over the last few days. One, China is seeing an
outbreak of HMPV and higher than usual rates of people
with flu symptoms are being seen across the country. Two.
This has caused serious strain on some hospitals, especially in
the colder north, but initial reports of hospitals being overwhelmed
(01:02):
by COVID era numbers of patients were exaggerations. My contacts
in northern China say that flu numbers are high but
still manageable. Three health experts argue currently at least that
there is a low risk of a global health emergency. Four. However,
the cases are spreading to neighboring countries and frankly now
(01:23):
around the world, and health experts in these countries are
following the situation in China very closely. We have been
following the situation very closely to here on China update,
and now we move through several salient updates on the situation. First,
we remind ourselves that HMPV is one of several pathogens
that circulate across the world each year, causing respiratory illnesses.
(01:46):
HMPV is common and causes symptoms much like those associated
with the flu and covid, including cough, fever, nasal congestion,
and weezing. HMPV is well studied and there is widespread
capacity to test for it. There is also broad population
level immunity to this virus. Globally, most HMPV infections are mild,
(02:08):
resembling bouts of the common cold, but severe cases can
result in bronchitis or pneumonia, particularly among infants older adults.
And immunocompromised people. Basians with pre existing lung conditions such
as asthma are at higher risk of severe outcomes. Beijing
has now acknowledged that HMPV cases are increasing, but have
(02:29):
emphasized that the virus is a known entity and that
it is not a major concern. Of course, after COVID,
many folks will be slow to trust Beijing's comments on
such things. State media has published a series of articles
this week telling the public not to panic, warning them
against blindly taking antiviral medications online. Many medicines have expressed
concern about the outbreak, but due to the sensitivity of
(02:51):
the situation, sensors have kept a tight leash on public
discourse around the matter. As for the WHO, the body
so far has not exp breast concern. On Tuesday of
this week, the organization put out a statement saying, quote
WHO is in contact with Chinese health officials and has
not received any reports of unusual outbreak patterns. In quote,
(03:12):
it added quote Chinese authorities report that the health care
system is not overwhelmed and there have been no emergency
declarations or responses triggered end quote. Of course, China said
exactly the same thing in December of twenty nineteen and
January of twenty twenty about COVID nineteen, so many will
be unwilling to take their word for it now. However,
my own on the ground visits to hospitals and feedback
(03:35):
from contacts in the north of the country especially does
suggest that the health care system is indeed not currently overwhelmed. Nevertheless,
there are growing calls around the world for China to
show more transparency. Doctor sanjayaz Nanayaki, a specialist in infectious
diseases at the Australian National University, for example, express yesterday
quote it is also vital for China to share its
(03:56):
data on this outbreak in a timely manner. This includes
epidemia logic data about who is getting infected. Also, we
will need genomic data confirming that h MVP is the
culprit and that there isn't any significant mutations of concern. Meanwhile,
the spread continues. Indonesia has started monitoring flights from China
(04:18):
and Malaysia amid concern over rising outbreaks in these countries.
Singapore said on Wednesday yesterday that it has witnessed a
spike in HMPV infections, but added that it was consistent
with expectations. It appears that cases are being found across
the world now, including in Europe and the UK, and
the US is now monitoring cases of the infections, with
(04:38):
the Centers of Disease Control and Prevention saying it is
currently looking at reports of increasing cases in the United States,
but played down any concern. We will continue following the
situation in a calm, cautious, and grounded manner here on
China Update. Make sure you are subscribed so you're on
top of these updates as they're released. Now let's move
to regular updates and we start with the economy, where
(05:00):
China has received some very concerning news. China's currency, the yemenbe,
has dropped to a sixteen month low against the US dollar,
reflecting economic concerns as the incoming Trump administration raises the
prospect of steep tariffs on Chinese exports. The onshore GERM
ANDB fell zero one percent to seven point three to
three per dollar on Wednesday yesterday, nearing the lower limit
(05:23):
of its trading band set by the People's Bank of
China China Central Bank. The decline follows strong U S
economic data, which has strengthened the dollar and dampened expectations
of rapid federal reserve rate cuts. In contrast, China continues
easing monetary policy to counter deflationary pressures. The US Dollar
index rose zero point five percent after Tuesday's Job and
(05:44):
Services data release. Analysts highlight that the ermenb's decline is
part of a broader trend of dollar strength, with other
Asian currencies such as the Thai BUTT and the Korean
I also weakening. The pressure on the R and B
is tied to fears that potential tariffs has high as
sixty percent proposed by President elect Donald Trump, could force
China to weaken its currency further to maintain export competitiveness. However,
(06:07):
the People's Bank of China has emphasized its commitment to
stabilizing the German B and avoiding exchange rate quote overshooting
in quote. Indeed, today Thursday, Beijing moved to ramp up
efforts to stabilize its currency by announcing a record sixty
billion yen eight point two billion UIST dollar bill issuance
in Hong Kong scheduled for January the fifteenth. This move
(06:27):
by the People's Bank of China aims to increase demand
for the yen overseas, tightened liquidity, and raise the cost
of shortening the currency. The issuance marks the largest since
the People's Bank of China began regular bill auctions in
Hong Kong in twenty eighteen. Beijing's efforts are aimed at
preventing disorderly capital outflows that could destabilize the economy further. However,
(06:49):
analysts like we Kon Chong of b in Why warn
that despite the People's Bank of China's actions, factors such
as the Yan's interest rate gap with the United States
and tariff uncertainties will continue to weigh on the currency.
As we have seen several banks predict that the currency
could weaken to as much as seven point five or
(07:10):
even worse this year. Meanwhile, in response to deflationary pressures
and weak consumer demand, Beijing has introduced measures like appliance,
trade and subsidies. We will discuss this in greater detail tomorrow.
There's just too much to cover today, but remains cautious
about border broader others spending plans, awaiting clarity on US
trade policies. However, this brings us to our next concerning
(07:32):
update for China's economy. Today Thursday saw the release of
the official consumer Price Index by the National Bureau of Statistics,
and even the official numbers are quite bad. China's consumer
inflation weakened further toward zero, decelerating for a fourth straight month,
in a major setback for the government's efforts to drive
up demand by injecting stimulus into the economy. The Consumer
(07:54):
Price Index rose just zero point one percent from a
year earlier the National Bureau of Statistics set on third day,
compared with a zero point two percent gain in the
previous month, and some suspects that it may have been negative,
but that a rate below zero percent would be too
politically incorrect. Factory deflation extended into its twenty seventh month,
(08:15):
just showing how China's supply side stimulus is simply deflating
prices and destroying profit margins for producers. The Producer Price
Index recorded a slower drop of two point three percent
year on year, but in a more encouraging sign for policymakers.
Core CPI, which excludes volatile food and fuel prices, picked
(08:37):
up for a third month to zero point four percent
from a year ago, reaching the highest levels since July
The persistence of deflationary pressures in China is in stark
contrast to other major economies, with elevated inflation risks flagged
by US Federal Reserve officials and Euro area price growth
accelerating last month. The worry for Bejing is that an
entrenched cycle of price decreases threatens to hold back households
(09:00):
spending for longer and damages corporate revenues so much that
it stifles investment and leads to further salary cuts and
layoffs to MBAR two. We look at this observation made
by Peaking University Professor of Finance Michael Pettis just a
few hours ago, quote, there were more signs today that
domestic demand in China isn't recovering in spite of all
(09:22):
the huffing and puffing over stimulus spending, consumer coupons, and
shopping events. CPI inflation in December was flat month on month.
Although this was much better at least than the negative
zero point six percent and negative zero point three percent
changes in November and October, it represents, nonetheless the fourth
month of zero to negative price changes on a year
(09:44):
or year basis. CPI inflation was zero point one percent,
in line with expectations. For twenty twenty four as a whole,
CPI inflation came in at a very meager zero point
two percent, the same as it was last year and
the lowest since two thousand and nine, for all the
stimulus and the surge and debt during the year. In
other words, China has been unable to revive inflation. With
(10:05):
PPI in December down two point three percent year on year,
roughly in line with what it's been all year. We
are almost certainly going to see a more negative GDP
DEFLEETA than last year's negative zero point five quotes. Next up,
we have one more development to cover, but just quickly.
If you're getting some value from today's episode of China Update,
I have a huge favor to ask. That is, just
(10:28):
to hit the like button. And if you have not
done so already and you find yourself watching more than
one of these episodes in the future, maybe consider subscribing
at the bell notification icons so you're on top of
the most up to date China analysis as it's released.
This channel is a one man band, but it's me
who writes, records, uploads, edits everything on the channel. I
(10:48):
rely primarily on subscribers support to keep going, so if
you'd like to help keep the channel financially sustainable, Patreon
and by Mere Coffee links are also in the description below.
Thank you so much. Now let's move on to the
final development for today. China is intensifying efforts to disrupt
the global dominance of Boeing and Airbus, as its state
backed aircraft manufacturer COMAC as international certifications for its first
(11:12):
domestically produced passenger jet, the C nine one nine. The
single aisle jet which took its maiden commercial flight in
twenty twenty three, currently operates domestically with China's major state
owned carriers, China Chinesestern Airlines and China Southern Airlines. In
a significant step, China Eastern Airlines began flying the C
nine one nine between Shanghai and Hong Kong and January
(11:33):
of this year, making its debut on a regular commercial
route outside of mainland China. By twenty twenty six, COMAC
aims to expand operations to Southeast Asia and secure European certification,
signaling its ambition to compete globally. The C nine one
nine project is central to General Secretary Shoomping strategy to
elevate China's position in high tech industries and challenge the
(11:54):
Western duopoli in aerospace manufacturing. The global aviation sector's ongoing
scone apply chain issues, compounded by Boeing's delays and financial difficulties,
provide a window of opportunity for new entrants like COMAC.
According to Airbus, global demand for single aisle aircraft is
expected to reach forty two thousand, fourre thirty units over
(12:15):
the next two decades, accounting for eighty percent of all
new planes. However, COMAC faces hurdles and achieving global certification
and providing robust maintenance support critical factors for international competitiveness.
While countries like Indonesia have shown interest, concerns about maintenance
and spere parts persist. Furthermore, gaining certification from regulators in
(12:36):
Europe and the United States remains challenging, especially amid geopolitical tensions.
These c nine to one nines reliance on Western main components,
including engines from CFM International, underscore its dependency on global
supply chains, and thus believe that while COMAC may not
capture a significant share of the global market in the
near future, it will serve as a key player in
(12:57):
China's import substitution strategy the gradually reducing reliance on foreign
aircraft for domestic needs. Meanwhile, and on this general theme,
China's three largest state owned airlines, Air China, China Eastern
and China Southern, are rapidly expanding their European routes, leveraging
the ability to fly over Russian airspace to gain a
cost advantage over Western carriers. In contrast, many European airlines,
(13:21):
including Luftanza, British Airways and Virgin Atlantic, have reduced diregg
flights to China due to high costs associated with avoiding
Russian airspace, as UK based The Financial Times reports this week.
Since Moscow's twenty twenty two ban on most European airlines
lying over its territory, Chinese airlines have stepped in to
fill the gap. Passenger seat capacity between China and Western Europe,
(13:42):
as measured in available seat climeters, rose by eighteen percent
in October twenty twenty four compared to the same period
in twenty nineteen. These carriers also offer tickets five percent
to thirty five percent cheaper than their European counterparts, further
undercutting competition. Despite this growth, China's aviation industry faces challenges.
Three carriers collectively reported losses of thirteen point three billion
(14:05):
yen one point eight billion US dollars in twenty twenty three,
with economic pressures and domestic competition weighing heavily on profitability.
Analysts anticipate similar losses in twenty twenty four. While some
Western airlines have pointed to weak demand for Chinese flights,
Data show's international passenger numbers for the big three Chinese
carriers nearing pre pandemic levels finally, after several years of
(14:27):
falling behind. Additionally, flights to the Middle East have surged,
reflecting growing business ties between China and golf nations. Critics argue, however,
that Chinese airlines benefit from government support, subsidies and a
cost advantage over Russia. Indeed, with strong robust government support,
these state owned enterprises, even if they do not find
a path to profitability in twenty twenty five, are not
(14:49):
going to go bankrupt. The state will ensure that they
continue operating even at a loss. Okay, that is today's
episode of China Update. Thank you so much everybody for watching.
Have a good Thursday, and I will see you all tomorrow,
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New Heights with Jason & Travis Kelce
Football’s funniest family duo — Jason Kelce of the Philadelphia Eagles and Travis Kelce of the Kansas City Chiefs — team up to provide next-level access to life in the league as it unfolds. The two brothers and Super Bowl champions drop weekly insights about the weekly slate of games and share their INSIDE perspectives on trending NFL news and sports headlines. They also endlessly rag on each other as brothers do, chat the latest in pop culture and welcome some very popular and well-known friends to chat with them. Check out new episodes every Wednesday. Follow New Heights on the Wondery App, YouTube or wherever you get your podcasts. You can listen to new episodes early and ad-free, and get exclusive content on Wondery+. Join Wondery+ in the Wondery App, Apple Podcasts or Spotify. And join our new membership for a unique fan experience by going to the New Heights YouTube channel now!
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!