Month: July 2022

China’s factory activity contracted unexpectedly in July after bouncing back from COVID-19 lockdowns the month before, as fresh virus flare-ups and a darkening global outlook weighed on demand, a survey showed on Sunday.

The official manufacturing purchasing managers’ Index (PMI) fell to 49.0 in July from 50.2 in June, the National Bureau of Statistics (NBS) said, below the 50-point mark that separates contraction from growth and the lowest in three months.

Analysts polled by Reuters had expected a reading of 50.4.

“The level of economic prosperity in China has fallen, the foundation for recovery still needs consolidation,” NBS senior statistician Zhao Qinghe said in a statement on the NBS website.

Continued contraction in the energy-intensive industries, such as petrol, coking coal and ferrous metals, contributed most to pulling down the July manufacturing PMI, he said.

Sub-indexes for output and new orders fell by 3 points and about 2 points in July, respectively, while the employment sub-index edged down by 0.1 point.

Weak demand has constrained recovery, Bruce Pang, chief economist and head of research at Jones Lang Lasalle Inc, said in a research note. “Q3 growth may face greater challenges than expected, as recovery is slow and fragile,” he added.

The official non-manufacturing PMI in July fell to 53.8 from 54.7 in June. The official composite PMI, which includes manufacturing and services, fell to 52.5 from 54.1.

China’s economy barely grew in the second quarter amid widespread lockdowns, and top leaders recently signaled their strict zero-COVID policy would remain a top priority.

Policymakers are prepared to miss their GDP growth target of “around 5.5%” for this year, state media reported after a high-level meeting of the ruling Communist Party.

Beijing’s decision to drop mention of the target has doused speculation that the authorities would roll out massive stimulus measures, as they often have in previous downturns.

Capital Economics says that policy restraint, along with the constant threat of more lockdowns and weak consumer confidence, is likely to make China’s economic recovery more drawn-out.

Faltering recovery

After a rebound in June, the recovery in the world’s second-biggest economy has faltered as COVID flare-ups led to tightening curbs on activity in some cities, while the once mighty property market lurches from crisis to crisis.

Chinese manufacturers continue to wrestle with high raw material prices, which are squeezing profit margins, as the export outlook remains clouded with fears of a global recession.

China’s southern megacity of Shenzhen has vowed to “mobilize all resources” to curb a slowly spreading COVID outbreak, ordering strict implementation of testing and temperature checks, and lockdowns for COVID-hit buildings.

The port city of Tianjin, home to factories linked to Boeing and Volkswagen, and other areas tightened curbs this month to fight new outbreaks.

According to World Economics, the lockdown measures had some impact on 41% of Chinese companies in July, though its index of manufacturing business confidence rose significantly from 50.2 in June to 51.7 in July.

Source: Voice of America

Nichelle Nichols, a groundbreaking Black actress who played communications officer Nyota Uhura with cool authority on the popular 1960s series “Star Trek,” has died at 89.

Her son, Kyle Johnson, announced the death on the official uhura.com website, saying, “Last night, my mother, Nichelle Nichols, succumbed to natural causes and passed away. Her light, however, like the ancient galaxies now being seen for the first time, will remain.”

A family spokesman said Nichols died in Silver City, New Mexico, where she had been living with her son.

Tributes poured in quickly, including from a long list of devoted “Trekkies.”

William Shatner, who played the USS Enterprise’s Captain James T. Kirk, sent his condolences to Nichols’ family.

“She was a beautiful woman & played an admirable character that did so much for redefining social issues both here in the US & throughout the world. I will certainly miss her.”

George Takei, who as helmsman Sulu shared the bridge with Lieutenant Uhura, called her “trailblazing and incomparable.”

And U.S. President Joe Biden said Nichols “redefined what is possible for Black Americans and women.”

“Our nation is forever indebted to inspiring artists like Nichelle Nichols, who show us a future where unity, dignity, and respect are cornerstones of every society,” he said in a statement.

Nichols made history with one of the first interracial kisses on U.S. television – a 1968 embrace shared with Shatner (a kiss deemed worthy of a separate entry in Wikipedia).

Martin Luther King Jr. himself once praised Nichols, who broke ground with her powerful performance at a time when Black actors more often were cast as servants or criminals.

‘An equal role’

Nichols, who had trained in ballet and musical theater, at one point told “Star Trek” creator Gene Roddenberry that she wanted to quit the show to return to the theater.

But when she mentioned that to King, in a chance meeting recounted by the Hollywood Reporter: “All the smile came off his face and he said, ‘You can’t do that. Don’t you understand, for the first time, we’re seen as we should be seen? You don’t have a Black role. You have an equal role.'”

She stayed.

Nichols worked as a recruiter for NASA – which reached out to her after she had criticized its lack of diversity – and successfully encouraged several talented African Americans and women of all races to consider careers with the space agency.

NASA paid tribute to her legacy in a tweet Sunday evening, calling her a “trailblazer and role model” who “symbolized to so many what was possible.”

The National Air and Space Museum also praised her work beyond the screen.

“She was an inspiration to many, not just for her groundbreaking work on Star Trek but also through her work with NASA to recruit women and people of color to apply to become astronauts,” the museum tweeted.

While best known as Uhura, Nichols had a varied career, dancing with Sammy Davis Jr. in “Porgy and Bess,” appearing on the NBC series “Heroes” and recording an album.

She also played Uhura – a name taken from the Swahili for “freedom” – in the first six “Star Trek” movies.

The Smithsonian, the U.S. national museum network, shared a picture on Twitter of the red space jacket Nichols wore as Uhura on screen, adorned with the iconic “Star Trek” pin, which is now on display at the National Museum of African American History and Culture in Washington.

Source: Voice of America

The United States and Japan launched a new high-level economic dialogue Friday aimed at pushing back against China and countering the disruption caused by Russia’s invasion of Ukraine.

The two longtime allies agreed to establish a new joint research center for next-generation semiconductors during the so-called economic “two-plus-two” ministerial meeting in Washington, Japanese Trade Minister Koichi Hagiuda said.

U.S. Secretary of State Antony Blinken, U.S. Commerce Secretary Gina Raimondo, Japanese Foreign Minister Yoshimasa Hayashi and Hagiuda also discussed energy and food security, the officials said in a news briefing.

“As the world’s first- and third-largest economies, it is critical that we work together to defend the rules-based economic order, one in which all countries can participate, compete and prosper,” Blinken told the opening session.

Hagiuda said “Japan will quickly move to action” on next-generation semiconductor research and said Washington and Tokyo had agreed to launch a “new R&D organization” to establish a secure source of the vital components.

The research hub would be open for other “like-minded” countries to participate in, he said.

The two countries did not immediately release additional details of the plan, but Japan’s Nikkei Shimbun newspaper earlier said it would be set up in Japan by the end of this year to research 2-nanometer semiconductor chips. It will include a prototype production line and should begin producing semiconductors by 2025, the newspaper said.

“As we discussed today, semiconductors are the linchpin of our economic and national security,” said Raimondo, adding that the officials had discussed collaboration on semiconductors, “especially with respect to advanced semiconductors.”

Taiwan now makes the vast majority of semiconductors under 10 nanometers, which are used in products such as smart phones, and there is concern about the stability of supply should trouble arise involving Taiwan and China, which views the island as part of its territory.

The United States and Japan said in a joint statement they would work together “to foster supply chain resilience in strategic sectors, including, in particular, semiconductors, batteries, and critical minerals.” They vowed to “build a strong battery supply chain to lead collaboration between like-minded countries.”

On ties with Russia, Hagiuda said he gained U.S. understanding about Japan’s intention to keep its stake in the Sakhalin-2 oil and gas project despite sanctions against Moscow by Washington, Tokyo and others following the Ukraine invasion.

“There are voices calling for withdrawal. But it would mean our stake goes to a third country and Russia earns an enormous profit. We explained how keeping our stake is in line with sanctions, and I believe we gained U.S. understanding,” he said.

Japanese trading houses Mitsui & Co and Mitsubishi Corp hold a combined 22.5% stake in the project.

Source: Voice of America

U.S. regulators said Friday they are no longer considering authorizing a second COVID-19 booster shot for all adults under 50 this summer, focusing instead on revamped vaccines for the fall that will target the newest viral subvariants.

Pfizer and Moderna expect to have updated versions of their shots available as early as September, the Food and Drug Administration said in a statement. That would set the stage for a fall booster campaign to strengthen protection against the latest versions of omicron.

The announcement means the U.S. won’t pursue a summer round of boosters using the current vaccines for adults under 50, as some Biden administration officials and outside experts previously suggested. They had argued that another round of shots now could help head off rising cases and hospitalizations caused by the highly transmissible omicron strains.

Currently, all Americans ages 5 and over are eligible for a booster shot five months after their initial primary series. Fourth doses of the Pfizer or Moderna shots — a second booster — are recommended for Americans 50 and older and for younger people with serious health issues that make them more vulnerable to COVID-19.

The FDA urged eligible adults who haven’t been boosted to get their extra shot now: “You can still benefit from existing booster options and leave time to receive an updated booster in the fall,” the agency said in a statement.

The White House has also emphasized that getting a fourth dose now won’t impact anyone’s ability to get omicron-targeted shots once they’re made available — although how long it’s been since their last dose will play a role in how soon they’re eligible.

Two omicron subvariants, BA.4 and BA.5, are even more contagious than their predecessors and have pushed new daily cases above 125,000 and hospitalizations to 6,300. Those are the highest levels since February, though deaths have remained low at about 360 per day, thanks to widespread immunity and improved treatments against the virus.

The subvariants are offshoots of the strain responsible for nearly all of the virus spread in the U.S. this year.

All the COVID-19 vaccines given in the U.S. until now have been based on the original version of the virus that began spreading across the country in early 2020.

In June, the FDA told the vaccine makers that any boosters for the fall would have to combine protection against omicron BA.4 and BA.5 and the original coronavirus strain. Both manufacturers have been speeding their production and data gathering to have those so-called bivalent vaccines ready for the fall.

The FDA and the Centers for Disease Control and Prevention would have to sign off on revamped shots before their launch.

The U.S. has a contract to buy 105 million doses of the Pfizer combination shots once they’re ready, and 66 million of Moderna’s version. But how soon large amounts would become available isn’t clear. The government contracts include options to purchase 300 million doses each but reaching that total will require more funding from Congress, the Biden administration said.

As for timing, getting a booster too soon after the previous dose means missing out on its full benefit — something policymakers will have to take into consideration when rolling out revamped shots.

The White House has at times been frustrated by the pace of decision-making at the FDA and CDC, most notably last summer, when the regulators took weeks to decide whether to authorize the first booster dose for U.S. adults. Privately, West Wing officials believe the delay cost lives, preventing optimum protection amid the delta and omicron surges, and also fed into doubts about vaccine and booster effectiveness that affected their uptake.

In recent weeks, some of those frustrations have bubbled up again, as regulators considered whether to recommend a fourth shot for all adults, not just those at highest risk from the virus. Some in the White House believe that the additional dose would have helped somewhat with the rapidly spreading BA.5 subvariant, and also lift the confidence of anyone worried that their protection had waned.

Still, officials across the government have acknowledged the risks of vaccine fatigue among Americans, including tens of millions who still haven’t received their first booster. Government figures show less than half of those eligible for a booster have gotten that third shot.

Source: Voice of America

The World Health Organization is calling for greater investment in the development of new vaccines to keep pace with the rapidly evolving variants of the coronavirus.

As world attention is focused on the monkeypox outbreak, WHO chief Tedros Adhanom Ghebreyesus warns the COVID-19 pandemic is far from over. He says new tools must be developed to curb this deadly disease while public health measures that are known to work must be maintained and strengthened.

He says one of the most effective ways to save lives is to vaccinate the right groups first. By this he means health workers, older people, and other at-risk groups such as those with underlying health conditions.

He notes COVID-19 cases and deaths have been increasing for the last five weeks. The latest WHO report puts the number of confirmed global cases at nearly 566 million, including more than 6.3 million deaths.

Tedros says several countries also are reporting increasing hospitalizations, following waves of transmission driven by omicron subvariants. “While vaccines have saved countless lives, they have not substantially reduced transmission. So, it is vital for governments and the private sector to continue collaborating and investing in the development of new vaccines that prevent both infection and disease.”

Tedros adds vaccines should be developed that can be delivered more easily, such as through nasal sprays or drops.

The WHO executive director for health emergencies, Mike Ryan, says more attention must be paid to pandemic preparedness. He says risks from diseases such as COVID-19, monkeypox, Marburg, and polio are accelerating because nations tend to be reactive, rather than active in tackling these diseases.

“I think we need to really take a much more systematic look at how we prioritize pathogens for the future and then how we invest… It will cost money and it does cost money. But it is a fantastic investment in protecting us down the line. And a dollar spent in preparedness is worth a thousand dollars spent on response.”

WHO chief Tedros agrees. He urges all countries to assess and strengthen their readiness and response plans for future waves of transmission.

He adds that as new vaccines and other COVID-19 tools are developed, it is crucial they are equitably available in all countries.

Source: Voice of America