{"id":1626363,"date":"2022-08-30T06:48:30","date_gmt":"2022-08-30T10:48:30","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1626363"},"modified":"2022-08-30T06:49:03","modified_gmt":"2022-08-30T10:49:03","slug":"chinese-tech-companies-have-their-worst-quarter-ever","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinese-tech-companies-have-their-worst-quarter-ever\/","title":{"rendered":"Chinese Tech Companies Have Their Worst Quarter Ever"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fchinese-tech-companies-have-their-worst-quarter-ever%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1626363&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><\/div>\n<p>I saw this video on Twitter last week. It shows employees at one of China\u2019s largest tech companies, Tencent, running out of their building after someone inside tested positive for COVID. The employees knew that unless they escape the building very quickly, they will be locked down inside for days.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">How not to <a href=\"https:\/\/twitter.com\/hashtag\/antivirus?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#antivirus<\/a> <\/p>\n<p>Video took inside head quarter building of <a href=\"https:\/\/twitter.com\/hashtag\/%E9%A8%B0%E8%A8%8A?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#\u9a30\u8a0a<\/a>. (<a href=\"https:\/\/twitter.com\/hashtag\/Tencent?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#Tencent<\/a> ,a world-wide <a href=\"https:\/\/twitter.com\/hashtag\/Chinese?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#Chinese<\/a> IT company)<br \/>Employee was found receive positive result in virus test.<br \/>The others was rushing out under the anxiety of lockdown by government.<a href=\"https:\/\/twitter.com\/hashtag\/China?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#China<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/COVID19?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#COVID19<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/ZeroCovid?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#ZeroCovid<\/a> <a href=\"https:\/\/t.co\/6CxYS836bD\" target=\"_blank\" rel=\"noopener\">https:\/\/t.co\/6CxYS836bD<\/a><\/p>\n<p>\u2014 \u904e\u52de\u6b7bX\u6587\u9999P (@Shimizusoul) <a href=\"https:\/\/twitter.com\/Shimizusoul\/status\/1562106850174468097?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">August 23, 2022<\/a><\/p>\n<\/blockquote>\n<p>This sort of thing continues happening in China as Xi Jinping insists on pursuing his zero-COVID policy no matter what the cost. Earlier this month there was a similar scene at an IKEA store in Shanghai.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Ikea furniture store in \ud83c\udde8\ud83c\uddf3 <a href=\"https:\/\/twitter.com\/hashtag\/Shanghai?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#Shanghai<\/a> Xujiahui District suddenly announced lockdown after the detection of 1 Covid positive. 300+ shoppers frantically pushed their way out to escape. The remaining shoppers unluckily trapped inside were forced to the quarantine concentration camps. <a href=\"https:\/\/t.co\/DmUHhUPk4x\" target=\"_blank\" rel=\"noopener\">pic.twitter.com\/DmUHhUPk4x<\/a><\/p>\n<p>\u2014 Northrop Gundam \u2200 (@GundamNorthrop) <a href=\"https:\/\/twitter.com\/GundamNorthrop\/status\/1558913262959284224?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">August 14, 2022<\/a><\/p>\n<\/blockquote>\n<p>And it keeps happening. Just today, China\u2019s largest electronics marketplace in Shenzhen was shut down over a handful of <a href=\"https:\/\/www.cnbc.com\/2022\/08\/29\/chinas-shenzhen-shuts-electronics-market-to-fight-covid-outbreak.html\" target=\"_blank\" rel=\"noopener\">positive tests<\/a>.<\/p>\n<blockquote>\n<p>Authorities in China\u2019s southern city of Shenzhen shut the world\u2019s largest electronics market of Huaqiangbei and suspended service at 24 subway stations on Monday in a bid to curb an outbreak of Covid-19.<\/p>\n<p>Three key buildings in the sprawling area, comprised of thousands of stalls selling microchips, telephone parts, and other components to manufacturers, will stay closed until Sept 2\u2026<\/p>\n<p>On Monday, the tech hub of nearly 18 million people reported nine symptomatic and two asymptomatic cases from testing the previous day.<\/p>\n<\/blockquote>\n<p>Here\u2019s what it looks like up close.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Residents of Shenzhen\u2019s Wanxia urban village watch the plastic walls go up as the urban village enters lockdown, again. They can go in, but won\u2019t be able to leave at least for a few days. None of Shenzhen\u2019s 11 Covid cases detected yesterday live in the village. <a href=\"https:\/\/t.co\/jgK238wR2k\" target=\"_blank\" rel=\"noopener\">pic.twitter.com\/jgK238wR2k<\/a><\/p>\n<p>\u2014 David Kirton (@DavidKirton_) <a href=\"https:\/\/twitter.com\/DavidKirton_\/status\/1564102278029529088?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">August 29, 2022<\/a><\/p>\n<\/blockquote>\n<p>Shutting down entire businesses or even large cities over a handful of positive test results inevitably does a lot of damage to the economy. That impact is now evident in China\u2019s <a href=\"https:\/\/www.cnbc.com\/2022\/08\/29\/chinese-tech-giants-post-worst-growth-on-record-due-to-zero-covid.html\" target=\"_blank\" rel=\"noopener\">2nd quarter results<\/a>.<\/p>\n<blockquote>\n<p>Chinese technology giants are coming off the back of their worst quarter of growth in history as a big slowdown in the world\u2019s second-largest economy, stoked by Beijing\u2019s strict Covid policy, takes its toll.<\/p>\n<p>In the second quarter of the year, e-commerce firm\u00a0<a href=\"https:\/\/www.cnbc.com\/quotes\/BABA\" target=\"_blank\" rel=\"noopener\">Alibaba<\/a>\u00a0posted its\u00a0<a href=\"https:\/\/www.cnbc.com\/2022\/08\/04\/alibaba-baba-earnings-fiscal-q1-june-quarter.html\" target=\"_blank\" rel=\"noopener\">first ever flat year-on-year quarterly revenue growth<\/a>\u00a0and social media and gaming company\u00a0<a href=\"https:\/\/www.cnbc.com\/quotes\/700-HK\" target=\"_blank\" rel=\"noopener\">Tencent<\/a>\u00a0reported its\u00a0<a href=\"https:\/\/www.cnbc.com\/2022\/08\/17\/tencent-earnings-q2-chinese-tech-giant-posts-first-ever-revenue-decline.html\" target=\"_blank\" rel=\"noopener\">first sales decline on record<\/a>.\u00a0<a href=\"https:\/\/www.cnbc.com\/quotes\/JD\" target=\"_blank\" rel=\"noopener\">JD.com<\/a>, China\u2019s second-largest e-commerce player,\u00a0<a href=\"https:\/\/www.cnbc.com\/2022\/08\/23\/jdcom-earnings-q2-chinese-e-commerce-giant-slowest-growth-on-record.html\" target=\"_blank\" rel=\"noopener\">posted its slowest revenue growth in history<\/a>, while electric vehicle maker\u00a0<a href=\"https:\/\/www.cnbc.com\/quotes\/XPEV\" target=\"_blank\" rel=\"noopener\">Xpeng<\/a>\u00a0posted a\u00a0<a href=\"https:\/\/www.cnbc.com\/2022\/08\/24\/xpeng-xpev-shares-tank-after-weak-electric-vehicle-guidance.html\" target=\"_blank\" rel=\"noopener\">wider-than-expected loss as well as weak guidance<\/a>\u2026<\/p>\n<p><a href=\"https:\/\/www.cnbc.com\/2022\/07\/15\/china-q2-gdp.html\" target=\"_blank\" rel=\"noopener\">China\u2019s economy grew just 0.4% in the second quarter<\/a>, and that impacted the strength of the consumer as well as spending from companies in areas like advertising and cloud computing.<\/p>\n<\/blockquote>\n<p>It\u2019s not just Chinese companies that are struggling. A survey of large US companies operating in China found that optimism about the future outlook for business has dropped substantially over the past year. Again, this is all connected to China\u2019s <a href=\"https:\/\/www.scmp.com\/economy\/china-economy\/article\/3190523\/us-business-optimism-china-tumbles-all-time-low-zero-covid\" target=\"_blank\" rel=\"noopener\">zero COVID fixation<\/a>.<\/p>\n<blockquote>\n<p>Compared with 10 years ago, confidence among American firms about the five-year outlook has dropped from nearly 90 per cent to just over 50 per cent this year, according to the US-China Business Council (USCBC) survey, which was released in Washington on Monday.<\/p>\n<p>Business optimism dived 18 percentage points compared to last year, and the number of companies that are \u201cpessimistic\u201d has increased from 5 per cent to more than 20 per cent over the past decade\u2026<\/p>\n<p data-v-883fc1e6=\"\" data-v-c9dd6a6e=\"\">China\u2019s coronavirus control measures were companies\u2019 top challenge, the survey said, with 96 per cent of respondents negatively affected by Beijing\u2019s zero-Covid policy and more than half delaying or cancelling investments as a result.<\/p>\n<\/blockquote>\n<p>Perhaps the most significant sign that things are desperate comes in the form of internal criticism of the Chinese government. The Associated Press reports today that a Chinese think tank is explicitly questioning Xi Jinping\u2019s focus on zero COVID at the <a href=\"https:\/\/apnews.com\/article\/covid-health-china-united-states-f0518bba56de9e97a6e81923cf8c1c0e?utm_campaign=TrueAnthem&amp;utm_medium=AP&amp;utm_source=Twitter\" target=\"_blank\" rel=\"noopener\">expense of growth<\/a>.<\/p>\n<blockquote>\n<p>The Anbound Research Center gave no details of possible changes but said President Xi Jinping\u2019s government needs to focus on shoring up sinking growth. It noted the United States, Europe and Japan are recovering economically after easing anti-disease curbs.<\/p>\n<p>\u201cPreventing the risk of economic stall should be the priority task,\u201d the think tank said in a report titled, \u201cIt\u2019s Time for China to Adjust Its Virus Control and Prevention Policies.\u201d<\/p>\n<p>Even such mild public disagreement with official policy is almost unknown in a politically sensitive year when Xi, China\u2019s most powerful leader since at least the 1980s, is expected to try to extend his time in office\u2026<\/p>\n<p>\u201cChina\u2019s economy is at risk of stalling\u201d due to the \u201cimpact of epidemic prevention and control policies,\u201d the think tank said.<\/p>\n<\/blockquote>\n<p>People in China disappear and wind up in jail for criticism of Xi Jinping so this is not something done lightly. But of course there is only one opinion that matters in China and there\u2019s no indication that Xi Jinping will be changing course anytime soon.\u00a0I\u2019ll wrap this up with one more story about zero COVID. This one was published by the <a href=\"https:\/\/www.scmp.com\/week-asia\/opinion\/article\/3190293\/hainans-covid-chaos-exposes-bad-ugly-and-scary-chinas-virus\" target=\"_blank\" rel=\"noopener\">South China Morning Post<\/a> on Saturday.<\/p>\n<blockquote>\n<p>My daughter and I finally returned home to Beijing on Tuesday, a full 23 days after we had arrived in Hainan for a planned one-week beach holiday and became\u00a0trapped in a travel nightmare\u00a0by China\u2019s extreme\u00a0Covid-19 suppression measures.<\/p>\n<p>For almost a month, we were forced to become nomads \u2013 first stranded on the tropical island province, then trapped thousands of kilometres away in Tianjin for a week as we waited to be cleared for our return to the Chinese capital\u2026<\/p>\n<p>The travel ban is apparently aimed at keeping China\u2019s capital virus-free in the run up to the Communist Party\u2019s 20th Congress, reportedly set for October, when Xi is widely expected to seek a norm-busting third term as the party chief in a major leadership shake-up\u2026<\/p>\n<p>From the Chinese government\u2019s perspective, the health code system has worked wonders in controlling both the spread of the virus and the population. It\u2019s hard to imagine the authorities voluntarily giving up such powers, even once the pandemic is over.<\/p>\n<\/blockquote>\n<p>So the immediate justification for the zero COVID obsession (preventing an outbreak prior to Xi\u2019s coronation) will be over in a few months. But as the author suggests, it\u2019s hard to imagine an authoritarian government giving up this much control of the population once it has established it.<\/p>\n<p><strong>Update<\/strong>: This is crazy.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">I\u2019m not sure who the joke is on, me or the people handing out these lists. I asked the receptionist: \u201cyou want me to read this?\u201d And she just started laughing. It\u2019s things like this that undermine the seriousness of zero covid in China. Who can pretend this is a good idea?<\/p>\n<p>\u2014 Don Weinland (@donweinland) <a href=\"https:\/\/twitter.com\/donweinland\/status\/1561630961673986048?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">August 22, 2022<\/a><\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>I saw this video on Twitter last week. It shows employees at one of China\u2019s largest tech companies, Tencent, running out of their building after someone inside tested positive for<\/p>\n","protected":false},"author":1,"featured_media":1626365,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1626363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1626363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1626363"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1626363\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1626365"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1626363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1626363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1626363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}