Asian Insider, Sept 8: China’s economic recovery; WHO to work with Beijing on testing standards for new Covid-19 vaccines; race to be Japan’s next PM

Asian Insider brings you insights into a fast-changing region from our network of correspondents and commentators.

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In today's bulletin: President Xi on containing Covid-19 and China's economic recovery; Australia pulls out two journalists from China over arrest fears; World Health Organisation begins working with China on vaccine standards; Softbank's billionaire founder raises concern with equity investments; Malaysia to reroute the East Coast Rail link project, and more.

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CHINA LEADS COVID-19 CONTROL & ECONOMIC RECOVERY, SAYS XI

Chinese President Xi Jinping highlighted the country's success in resuming growth - becoming the first in the world to do so - and effectively containing the pandemic, in a speech at the Great Hall of the People, where several were awarded medals for their heroic efforts.

The Chinese leader's hour-long address to his people comes as several economies are assessing losses due to the pandemic and economic contractions that will take place.

Just this week, Japan's economy, the world's third-largest, sank deeper into its worst postwar contraction while India's economy is projected to contract 11.8 per cent on the year in the current fiscal year beginning from April, although reports have said it could bounce back in the next fiscal year.

President Xi noted the significant advantages of the country's socialist system in his address maintaining: "An important aspect of measuring the success and superiority of a country's system is to see whether it can give orders from all sides and organise all parties to cope with major risks and challenges."

However, experts have cautioned that the outlook is still far from rosy. While China's exports increased for the third consecutive month in August, the country's imports slumped suggesting softer domestic demand. That apart, the virus continues to pose a threat and China's widening rift with the United States too could have a bearing on its economic recovery.

Delve deeper:

'Dual circulation': 5 things to know about China's new economic development strategy

China will continue with its efforts to revitalise trade: China Daily

Trump raises idea of decoupling US economy from China

AUSTRALIA PULLS TWO JOURNALISTS FROM CHINA OVER ARREST FEARS

Australia rushed two of its journalists out of China after they were questioned separately by China's Ministry of State security, in a dramatic day of developments that comes amid mounting tensions between the two countries.

The journalists took shelter in Australia's embassy in Beijing and consulate in Shanghai as diplomats negotiated with Chinese officials to allow them to safely leave the country, a report by the Australian Broadcasting Corporation said.

One of the journalists was an ABC correspondent based in Beijing while the other was the Australian Financial Review's (AFR) correspondent based in Shanghai. Both boarded a flight to Sydney on Monday night.

Read also:

Journalists with US media face delay in China credentials

List of foreign journalists forced to leave China grows longer as diplomatic tensions worsen

PUSH FOR VACCINES LEAVES EXPERTS WORRIED, PEOPLE SCEPTICAL

The World Health Organisation (WHO) said it is working closely with China on international approval of Covid-19 vaccines developed in the country amid growing concerns over inadequate testing in the rush to come up with a vaccine.

WHO's statement came as Chinese firm Sinovac Biotech said on Monday its coronavirus vaccine candidate appeared to be safe for older people, according to preliminary results, while the immune responses triggered by the vaccine were slightly weaker than younger adults. Some health experts have expressed their reservations about the finding.

Meanwhile, in the United States, President Donald Trump's assertion that a coronavirus vaccine that would be "very safe and very effective" will be ready by October has met with scepticism. WHO has said it does not expect widespread immunisation against coronavirus to be possible until the middle of next year.

Read also:

Joyce Teo: First may not be the best: Over 30 Covid-19 vaccines in global clinical trials but experts urge caution

Race for coronavirus vaccine pits spy against spy

SOFTBANK FOUNDER'S BIG BETS ON TECH STOCKS

SoftBank Group has been causing much consternation in markets after reports surfaced that the Japanese conglomerate was making massive bets on technology stocks using equity options.

The Financial Times labelled SoftBank a "Nasdaq whale" that "stoked the fevered rally in big tech stocks" while other reports highlighted concerns that billionaire founder Masayoshi Son is embarking on a risky endeavour, which could result in losses like those suffered with its investment in office-sharing start-up WeWork.

Also read:

SoftBank is said to consider bid for TikTok in India

MALAYSIA TO REROUTE BELT & ROAD INITIATIVE PROJECT

Malaysia announced it is seeking to reroute a US$10.6 billion (S$14.5 billion) rail project being built across the peninsula under China's Belt and Road trade initiative. Reports said the change will likely allow it to revert the route closer to one discussed under the Barisan Nasional government before it changed under the Pakatan Harapan government. This would not have a significant bearing on costs.

Delve deeper:

Malaysia's East Coast Rail Link back on track after government signs $14.5b deal with China

IN OTHER NEWS

RACE TO BE LDP LEADER KICKS OFF: The race to become leader of the ruling Liberal Democratic Party (LDP) - and hence Prime Minister as the LDP has a majority in the Diet - officially kicked off on Tuesday, with candidates facing off after they filed their candidacy papers. The LDP will choose a successor next Monday (Sept 14) to outgoing Shinzo Abe, who abruptly resigned last month over a chronic digestive ailment. The victor will be inaugurated in the Diet next Wednesday. Read Japan Correspondent Walter Sim's report: "I'm just an ordinary person," says Yoshihide Suga, front runner to succeed Abe as Japan PM.

ELECTION COUNTDOWN STARTS IN MYANMAR: Myanmar's election campaign began Tuesday with Ms Aung San Suu Kyi's party tipped for victory, with the Nobel laureate much loved at home despite her reputation shattered overseas, although she is appealing for a landslide to counter the still mighty military. Her National League for Democracy (NLD) party swept to power in 2015 - the first national polls since the South-east Asian nation emerged from decades of junta rule.

GROWING CALLS TO BOYCOTT MULAN: Disney's live-action remake of Mulan has drawn a fresh wave of criticism for being filmed partly in Xinjiang, the region in China where Uighur Muslims have been detained in mass internment camps. The outcry was the latest example of how the new film, which was released on Disney+ over the weekend, has become a magnet for anger over the Chinese Communist Party's policies promoting nationalism and ethnic Han chauvinism.

That's it for today. Thanks for reading. We'll be back with you tomorrow.

Shefali

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