Qin Gang on disinformation about Ukraine

• Chinese Ambassador to the U.S. Qin Gang published a commentary (En/Ch) in The Washington Post, denying that China had prior knowledge of the Russian military operations in Ukraine. “Assertions that China knew about, acquiesced to or tacitly supported this war are purely disinformation,” wrote the ambassador.

China’s Covid lockdowns affect global supply chain

• Mainland China reported more than 5,100 new Covid-19 infections on Tuesday, the highest daily increase since the Wuhan outbreak two years ago. The surge in the Covid cases has triggered lockdowns in major cities, and the global market has felt a supply chain disruption as a result. The productions of cars, phones, computer cables, and circuit boards are among the victims of the measures.

• However, the confidence of multinational companies in the Chinese market remains intact as the foreign direct investment into China increased 37.9% annually in the last two months. Businesses cited digitalization, new energy, and the “common prosperity” policy as the reasons for the optimism about the prospect.

Sanctions on Russia worsen inflation

• The massive sanctions on Russia are fueling the fear of worsening inflation, adding challenges to the U.S. Federal Reserve’s effort to cool down the already high inflation. At the same time, the party struggle over the Fed nominations adds to the uncertainty of the country’s future monetary policy.

Chinese stocks hit by massive sell-off

• Affected by the Ukraine crisis, the Chinese shares in the U.S. sank 72% yesterday at a level close to the sell-off during the 2008 financial crisis, almost matching the Nasdaq plunge in the 2000s dot-com crash.

• The stock markets in Hong Kong and Mainland China also fell sharply on Tuesday, with Hang Seng Index slumping to a six-year low and the Shanghai Composite Index and the Shenzhen Component Index down more than 4%.

Saudis consider using yuan in China oil deals

• While the Chinese stocks are suffering a loss, investors see a boost in Chinese currency as Saudi Arabia considers using yuan in some oil transactions with China. The kingdom appears to signal a distancing from the U.S. But riyal’s pegging to the dollar could limit the impacts of the move.

U.S.-ASEAN summit postponed over scheduling rift

• The U.S.-initiated summit with ASEAN countries will be postponed because some leaders of the Southeast Asian bloc “are unable to join the summit on the proposed date,” the Cambodian foreign minister announced. U.S. President Joe Biden planned to host the meeting on March 28 and 29. There is no new date suggested.