Archive for the ‘Media Control’ Category

China COVID hard line eats into everything from Teslas to tacos – Reuters

SHANGHAI, May 2 (Reuters) - When Tesla's (TSLA.O) Shanghai plant and other auto factories were shut over the last two months by emergency measures to control Chinas biggest COVID-19 outbreak, the burning question was how quickly they could restart to meet surging demand.

But with the Shanghai lockdown grinding into its fourth week, and similar measures imposed in dozens of smaller cities, the worlds largest boom market for electric cars has gone bust.

Other companies from luxury goods makers to fast-food restaurants have also offered a first read on the lost sales and shaken confidence of recent weeks, even as Beijing rolls out measures to help COVID-hit industries and stimulate demand. read more

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Joey Wat, CEO of Yum China (9987.HK), which owns KFC and Taco Bell, said in a letter to investors that April sales had been significantly impacted by COVID controls. In response, the company simplified its menu, streamlined staffing and promoted bulk orders for locked-down communities, she said.

The pressing question now is: how and when will Chinese consumers start buying everything from Teslas to tacos again?

In China's once-hot EV market, the recent turmoil is a stark example of a one-two economic punch, first to supply and then to demand, from Beijings hard-line implementation of COVID controls across the worlds second-largest economy. read more

Before Shanghai was locked down in early April to contain a COVID-19 outbreak, sales of electric vehicles had been booming. Teslas sales in China had jumped 56% in the first quarter, while sales for EVs from its larger rival in China, BYD (002594.SZ), had quintupled. Then came the lockdowns.

Showrooms, stores and malls in Shanghai were shut and its 25 million residents were unable to shop online for much beyond food and daily necessities due to delivery bottlenecks. Analysts at Nomura estimated in mid-April that 45 cities in China, representing 40% of its GDP, were under full or partial lockdowns, with the economy at a growing risk of recession.

The China Passenger Car Association estimated retail deliveries of passenger cars in China were 39% lower in the first three weeks of April from a year earlier.

COVID control measures cut into shipments, car dealers held back from promoting new models, and sales tumbled in Chinas richest markets of Shanghai and Guangdong, the association said.

One dealer of a premium German car brand in Jiangsu province, which borders Shanghai, told Reuters sales plunged by one-third to half in April, citing lockdowns and trucking bottlenecks that made it difficult to deliver orders.

He was even more worried about the impact on consumer spending power, he said, declining to give his name as he was not permitted to speak to the media.

"It could be worse than the first wave of COVID in 2020, when the economic recovery was quick and strong. Nowadays there are more uncertainties in the economy, and the stock and property markets are not doing well," he said.

Much will depend on how fast these restrictions can be lifted but the coming weeks may be difficult, Helen de Tissot, chief financial officer at French spirits maker Pernod Ricard (PERP.PA), told Reuters on Thursday. read more

Kering (PRTP.PA), which owns luxury brands including Gucci and Saint Laurent, said a significant chunk of its stores had been shuttered in April.

Its very difficult to predict what will happen after the lockdown, said Jean-Marc Duplaix, Kerings chief financial officer. read more

Apple (AAPL.O) also warned at its latest results over COVID-hit demand in China. read more

City authorities from Beijing to Shenzhen are trying to stimulate some demand by giving out millions of dollars worth of shopping vouchers to encourage residents to spend.

On Friday, Guangdong, a manufacturing powerhouse with an economy larger than South Koreas, rolled out its own incentives to try to restart sales of EVs and plug-in hybrids.

These include subsidies of up to 8,000 yuan ($1,200) for a select range of what China classes as new energy vehicles, including from Volkswagen (VOWG_p.DE) and BYD. Tesla, second in EV sales in China, was excluded from the subsidy programme.

The U.S. automaker did not respond to a request for comment.

Chongqing, another major auto manufacturing hub, in March said it would offer cash of up to 2,000 yuan ($300) for shoppers who exchange old cars for new models and set aside another $3 million for other measures to spur sales.

While noting such measures, Credit Suisse analysts still said they believe COVID control measures have put both online and offline consumption on a downward spiral.

"We see the consumer sector as being at major risk if the prolonged pandemic and further tightening continue across China," they said in an April 19 research note.

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Reporting by Zhang Yan and Brenda Goh; Additional reporting by Sophie Yu in Beijing and Silvia Aloisi in Milan; Writing by Kevin Krolicki; Editing by Tom Hogue

Our Standards: The Thomson Reuters Trust Principles.

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China COVID hard line eats into everything from Teslas to tacos - Reuters

Russia-Ukraine war: South Korea set to reopen embassy in Kyiv; Lavrov says Russia working to prevent nuclear war as it happened – The Guardian

Around 100 civilians were on Sunday evacuated from the Azovstal steelworks in Mariupol, the last holdout of Ukrainian forces in the city. Around 1,000 civilians and 2,000 Ukrainian fighters are thought to be sheltering in bunkers and tunnels underneath the plant, enduring a weeks-long siege with little food or water.

One of the civilians evacuated spoke to Reuters, telling the news agency, We didnt see the sun for so long:

Cowering in the labyrinth of Soviet-era bunkers far beneath the vast Azovstal steel works, Natalia Usmanova felt her heart would stop she was so terrified as Russian bombs rained down on Mariupol, sprinkling her with concrete dust.

Usmanova, 37, spoke to Reuters on Sunday after being evacuated from the plant, a sprawling complex founded under Josef Stalin and designed with a subterranean network of bunkers and tunnels to withstand attack.

I feared that the bunker would not withstand it I had terrible fear, Usmanova said, describing the time sheltering underground.

When the bunker started to shake, I was hysterical, my husband can vouch for that: I was so worried the bunker would cave in.

We didnt see the sun for so long, she said, speaking in the village of Bezimenne in an area of Donetsk under the control of Russia-backed separatists around 30 km (20 miles) east of Mariupol.

She recalled the lack of oxygen in the shelters and the fear that had gripped the lives of people hunkered down there.

Usmanova was among dozens of civilians evacuated from the plant in Mariupol, a southern port city that has been besieged by Russian forces for weeks and left a wasteland.

Usmanova said she joked with her husband on the bus ride out, in a convoy agreed by the United Nations and the International Committee of the Red Cross (ICRC), that they would no longer have to go to the lavatory with a torch.

You just cant imagine what we have been through - the terror, Usmanova said. I lived there, worked there all my life, but what we saw there was just terrible.

Thank you for following todays coverage of the war in Ukraine.

We will be closing this liveblog but you can catch all the latest developments on our new blog launched below.

US first lady Jill Biden is set to visit Romania and Slovakia on Thursday for five days to meet with US service members and embassy personnel, displaced Ukrainian parents and children, humanitarian aid workers, and teachers, her office has said.

On Sunday, celebrated as Mothers Day in the United States, Biden will meet with Ukrainian mothers and children who have been forced to flee their homes because of Russias war against Ukraine, her office said according to Reuters.

The wife of president Joe Biden will meet with US military service members at Mihail Kogalniceau Airbase in Romania on Friday, before heading to Bucharest to meet with Romanian government officials, US embassy staff, humanitarian aid workers, and teachers working with displaced Ukrainian children.

The trip also includes stops in the Slovakian cities of Bratislava, Kosice and Vysne Nemecke, where Biden will meet with government officials, refugees and aid workers, her office said.

Bidens visit is the latest show of support for Ukraine and neighbouring countries that are helping Ukrainian refugees by top US representatives.

South Korean ambassador Kim Hyung-tae has returned to Kyiv along with some embassy staff, the news agency Yonhap has reported citing the Foreign Ministry in Seoul.

The South Korean embassy was evacuated at the beginning of the Russian invasion and staff had been working at a temporary office in the western Ukrainian city of Chernivtsi since March.

The ministry said Kim would start working from Kyiv on Monday and that it was considering the phased return of remaining staff in accordance with the future security situation there.

[They] plan to carry out tasks on diplomatic affairs and protecting [South Korean] nationals under closer cooperation with the Ukrainian government.

More than 20 embassies, including those of the EU, UK, France, Spain, Italy and the Netherlands, have already reopened in the Ukrainian capital.

US secretary of state Antony Blinken said US diplomats would gradually begin returning to the country during a visit to Kyiv last week.

Associated Press has filed a story saying that the Ghost of Kyiv, an unnamed fighter pilot who was praised for supposedly shooting down several Russian planes, is in fact a myth.

Ukrainian authorities admitted that the legendary pilot was a myth.

The Ghost of Kyiv is a super-hero legend whose character was created by Ukrainians! Ukraines air force said in Ukrainian on Facebook.

The statement came after multiple media outlets published stories wrongly identifying Major Stepan Tarabalka as the man behind the moniker. Tarabalka was a real pilot who died on March 13 during air combat and was posthumously awarded the title Hero of Ukraine, Ukraines air force said last month.

But he was not the Ghost of Kyiv, the force said in Saturdays statement. The information about the death of the The Ghost of #Kyiv is incorrect, Ukraines air force wrote in a separate post Saturday on Twitter. The #GhostOfKyiv is alive, it embodies the collective spirit of the highly qualified pilots of the Tactical Aviation Brigade who are successfully defending #Kyiv and the region.

Adam Schiff, chairman of the US House Intelligence Committee, has told CNN its only a matter of time before US president Joe Biden visits Ukraine.

I have to think that a presidential visit is something under consideration, but only a question of how soon that will be feasible.

On Sunday US House speaker Nancy Pelosi became the highest ranking US official to meet Ukrainian president Volodymyr Zelenskiy in Kyiv since the start of Russias invasion at the end of February.

The House delegation had discussed Zelenskiys priorities for the next phase of the war, which is concentrated in the east of the country after Russian forces withdrew from around the capital, and Bidens request for a $33bn aid package for Ukraine, Schiff said:

We wanted to discuss with him, within that really vast sum, what is the priority in terms of what weapons that he needs, what other assistance that he needs, Schiff said. We went through a detailed discussion of the next phase of the war. Its moving from a phase in which Ukrainians were ambushing Russian tanks -- it was close-quarters fighting -- to fighting more at a distance using long range artillery, and that changes the nature of what Ukraine needs to defend itself.

Russias top uniformed officer, General Valery Gerasimov, visited dangerous frontline positions in eastern Ukraine last week in a bid to reinvigorate the Russian offensive there, the New York Times has reported citing Ukrainian and US officials.

The Guardian was unable to verify the report.

During the visit, Gerasimov, chief of the Russian general staff, narrowly escaped a deadly Ukrainian attack on a school being used as a military base in the Russian-controlled city of Izium late Saturday, the Times reported.

Around 200 soldiers including at least one general were killed in the strike, a Ukrainian official told the paper, but Gerasimov had already departed for Russia.

The Institute for the Study of War, a US-based think tank, earlier said that Ukrainian forces had likely conducted a rocket artillery strike on a Russian command post in Izyum on April 30 that struck after Russian chief of staff Valery Gerasimov had left but killed other senior Russian officers.

US officials could not confirm the attack and the Russian Defence Ministry did not immediately respond to a request for comment.

Our working assumption is that he was there because theres a recognition they havent worked out all their problems yet, one of the US officials told the Times. The Russian offensive has been slow, with widespread disarray and poor morale reported among Russian forces.

The Kremlin appears to be focusing its operations around the city of Izium as part of renewed efforts to seize the entirety of the Donetsk and Luhansk regions. Gerasimov has reportedly been put in command of the push.

Two explosions have taken place in the early hours of Monday in Belgorod, the southern Russian region bordering Ukraine, Vyacheslav Gladkov, the regions governor has written in a social media post.

There were no casualties or damage, Gladkov wrote, according to Reuters.

On Sunday Gladkov had said one person was injured in a fire at a Russian defence ministry facility in Belgorod, while seven homes had been damaged.

Posts on social media said fighter jets and loud explosions had been heard above the city overnight. The Guardian was unable to verify the reports.

Russia last month accused Ukraine of a helicopter attack on a fuel depot in Belgorod, for which Kyiv denied responsibility, as well as shelling villages and firing missiles at an ammunition depot.

Updated at 22.22EDT

A few more images captured by Reuters of the evacuation of civilians from the Azovstal steel works in Mariupol, showing emotional scenes as people were reunited with family members in the village of Bezimenne in the Donetsk region:

Around 100 civilians were on Sunday evacuated from the Azovstal steelworks in Mariupol, the last holdout of Ukrainian forces in the city. Around 1,000 civilians and 2,000 Ukrainian fighters are thought to be sheltering in bunkers and tunnels underneath the plant, enduring a weeks-long siege with little food or water.

One of the civilians evacuated spoke to Reuters, telling the news agency, We didnt see the sun for so long:

Cowering in the labyrinth of Soviet-era bunkers far beneath the vast Azovstal steel works, Natalia Usmanova felt her heart would stop she was so terrified as Russian bombs rained down on Mariupol, sprinkling her with concrete dust.

Usmanova, 37, spoke to Reuters on Sunday after being evacuated from the plant, a sprawling complex founded under Josef Stalin and designed with a subterranean network of bunkers and tunnels to withstand attack.

I feared that the bunker would not withstand it I had terrible fear, Usmanova said, describing the time sheltering underground.

When the bunker started to shake, I was hysterical, my husband can vouch for that: I was so worried the bunker would cave in.

We didnt see the sun for so long, she said, speaking in the village of Bezimenne in an area of Donetsk under the control of Russia-backed separatists around 30 km (20 miles) east of Mariupol.

She recalled the lack of oxygen in the shelters and the fear that had gripped the lives of people hunkered down there.

Usmanova was among dozens of civilians evacuated from the plant in Mariupol, a southern port city that has been besieged by Russian forces for weeks and left a wasteland.

Usmanova said she joked with her husband on the bus ride out, in a convoy agreed by the United Nations and the International Committee of the Red Cross (ICRC), that they would no longer have to go to the lavatory with a torch.

You just cant imagine what we have been through - the terror, Usmanova said. I lived there, worked there all my life, but what we saw there was just terrible.

Hello, this is Helen Livingstone taking over the blog from Maanvi Singh to bring you the latest from the war in Ukraine.

First a bit more from Russian foreign minister Sergei Lavrovs interview with Italys Mediaset broadcaster.

He said that Russia was not demanding the surrender of Ukrainian president Volodymyr Zelenskiy as a condition for peace.

We do not demand that he surrender. We demand that he give the order to release all civilians and stop the resistance. Our goal does not include regime change in Ukraine. This is an American speciality. They do it all over the world.

We want to ensure the safety of people in the east of Ukraine, so that they are not threatened by either the militarisation or the nazification of this country, and that there are no threats to the security of the Russian Federation from the territory of Ukraine.

He also denied that Russia would attempt to claim victory in Ukraine by 9 May when Russia marks the end of the second world war with Victory Day saying that the Russian military would not artificially adjust their actions to any date, including Victory Day.

The pace of the operation in Ukraine depends, first of all, on the need to minimise any risks for the civilian population and Russian military personnel.

Asked about recent rumours concerning the health of president Vladimir Putin, he did not answer directly, saying instead:

Ask the foreign leaders who spoke with Russian President Vladimir Putin recently, including UN Secretary-General Antonio Guterres. I think you will understand what is at stake.

Updated at 20.34EDT

Jennifer Rankin, Harry Taylor, Maanvi Singh, Rob Booth

Updated at 20.39EDT

In Kherson, the first major city to fall, Russia is replacing Ukrainian currency with Russian rubles.

Per AFP, Kirill Stremousov, a civilian and military administrator of Kherson said that beginning 1 May, we will move to the ruble zone, according state news agency RIA Novosti.

It is a tactic to legitimize Russias control of the city and surrounding areas through installing a pro-Russian administration, according to an intelligence update released by Britains Defense Ministry. The move is indicative of Russian intent to exert strong political and economic influence in Kherson over the long term, the Defense Ministry said.

Russias foreign minister, Sergei Lavrov, said that the county is working to prevent nuclear war, Reuters reports.

In an interview with Italian TV, Lavrov said: Western media misrepresent Russian threats. Russia has never interrupted efforts to reach agreements that guarantee that a nuclear war never develops.

Lavrov also doubled down on Russian conspiracy theories and propaganda about Nazism in Ukraine.

This week, Pentagon press secretary John Kirby called Russias justification for the war in Ukraine BS. Its hard to square [Vladimir Putins] BS that this is about Nazism in Ukraine, and its about protecting Russians in Ukraine, and its about defending Russian national interests, when none of them, none of them were threatened by Ukraine, Kirby said. Its brutality of the coldest and the most depraved sort.

Updated at 18.19EDT

Eight have died after Russian attacks on Donetsk and Kharkiv, according to the governors of those regions.

AFP reports:

The deaths came as the Russian army refocuses its efforts on eastern Ukraine, notably the Donbas region, which incorporates Donetsk and Lugansk.

Four were killed in shelling in the town of Lyman in Donetsk, the regional governor said.

On May 1, four civilians were killed in Russian shelling in the Donetsk region, all in Lyman. Eleven other people were injured, governor Pavlo Kyrylenko said on Telegram.

Another person had died of his injuries in a town near Lyman, he added.

Lyman, a former railway hub known as the red town for its redbrick industrial buildings, is expected to be one of the next places to fall to the Russian army after Ukrainian forces withdrew.

Over the past 24 hours, Russian forces appeared to have made notable advances around the town, advancing on their positions by several kilometres, an AFP team in the area said.

Another three people were killed in shelling on residential areas in and around Kharkiv, Ukraines second city, the regional governor Oleg Synegubov said on Telegram.

As a result of these shellings, unfortunately, three people were killed and eight civilians were injured.

The Ukrainian army has also withdrawn from Kharkiv, its troops now in outlying positions, according to AFP journalists who recently visited the city.

Ukrainian president Volodomyr Zelenskiy said that evacuations from Mariupol will continue tomorrow if all the necessary conditions are met. Today, for the first time in all the days of the war, this vital corridor has started working, he said. For the first time there were two days of real ceasefire on this territory.

In his latest address, he said:

We will continue to do everything to evacuate our people from Azovstal, from Mariupol in general. The organization of such humanitarian corridors is one of the elements of the ongoing negotiation process. It is very complex. But no matter how difficult it was, more than 350,000 people were rescued from the areas of hostilities...

Today, Russian troops continued to strike at the territory of our state. The targets they choose prove once again that the war against Ukraine is a war of extermination for the Russian army. They targeted the warehouses of agricultural enterprises. The grain warehouse was destroyed. The warehouse with fertilizers was also shelled. They continued shelling of residential neighborhoods in the Kharkiv region, Donbas, etc.

They are accumulating forces in the south of the country to try to attack our cities and communities in the Dnipropetrovsk region.

What could be Russias strategic success in this war? Honestly, I do not know. The ruined lives of people and the burned or stolen property will give nothing to Russia. It will only increase the toxicity of the Russian state and the number of those in the world who will work to isolate Russia.

Isobel Koshiw and Ed Ram in Kharkiv report:

In Ukraines second city, where the barrage of Russian shelling has been among the most relentless endured, hundreds of people stand in line at a post office, waiting to be given chicken and potatoes. As elsewhere in the country, the mundane institutions of civil society of Kharkiv have had to be hastily repurposed for the goal of keeping its population alive, and about 30 such locations across the city have been turned into food aid distribution points.

The postal workers at this branch of Nova Poshta, who are being paid by their employer to hand out food instead of post, say that an average of 3,000 people come to their repurposed branch every day, seven days a week. They manage the queues using the post offices ticket system.

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Russia-Ukraine war: South Korea set to reopen embassy in Kyiv; Lavrov says Russia working to prevent nuclear war as it happened - The Guardian

Its Time to Open the Black Box of Social Media – Scientific American

Social media platforms are where billions of people around the world go to connect with others, get information and make sense of the world. These companies, including Facebook, Twitter, Instagram, Tiktok and Reddit, collect vast amounts of data based on every interaction that takes place on their platforms.

And despite the fact that social media has become one of our most important public forums for speech, several of the most important platforms are controlled by a small number of people. Mark Zuckerberg controls 58% of the voting share of Meta, the parent company of both Facebook and Instagram, effectively giving him sole control of two of the largest social platforms. Now that Twitters board has accepted Elon Musks $44 billion offer to take the company private, that platform will likewise soon be under the control of a single person. All these companies have a history of sharing scant portions of data about their platforms with researchers, preventing us from understanding the impacts of social media to individuals and society. Such singular ownership of the three most powerful social media platforms makes us fear this lockdown on data sharing will continue.

After two decades of little regulation, it is time to require more transparency from social media companies.

In 2020, social media was an important mechanism for the spread of false and misleading claims about the election, and for mobilization by groups that participated in the January 6 Capitol insurrection. We have seen misinformation about COVID-19 spread widely online during the pandemic. And today, social media companies are failing to remove the Russian propaganda about the war in Ukraine that they promised to ban. Social media has become an important conduit for the spread of false information about every issue of concern to society. We dont know what the next crisis will be, but we do know that false claims about it will circulate on these platforms.

Unfortunately, social media companies are stingy about releasing data and publishing research, especially when the findings might be unwelcome (though notable exceptions exist). The only way to understand what is happening on the platforms is for lawmakers and regulators to require social media companies to release data to independent researchers. In particular, we need access to data on the structures of social media, like platform features and algorithms, so we can better analyze how they shape the spread of information and affect user behavior.

For example, platforms have assured legislators that they are taking steps to counter mis/disinformation by flagging content and inserting fact-checks. Are these efforts effective? Again, we would need access to data to know. Without better data, we cant have a substantive discussion about which interventions are most effective and consistent with our values. We also run the risk of creating new laws and regulations that do not adequately address harms, or of inadvertently making problems worse.

Some of us have consulted with lawmakers in the United States and Europe on potential legislative reforms like these. The conversation around transparency and accountability for social media companies has grown deeper and more substantive, moving from vague generalities to specific proposals. However, the debate still lacks important context. Lawmakers and regulators frequently ask us to better explain why we need access to data, what research it would enable and how that research would help the public and inform regulation of social media platforms.

To address this need, weve created this list of questions we could answer if social media companies began to share more of the data they gather about how their services function and how users interact with their systems. We believe such research would help platforms develop better, safer systems, and also inform lawmakers and regulators who seek to hold platforms accountable for the promises they make to the public.

Social media companies ought to welcome the help of independent researchers to better measure online harm and inform policies. Some companies, such as Twitter and Reddit, have been helpful, but we cant depend on the goodwill of a few companies, whose policies might change at the whim of a new owner. We hope a Musk-led Twitter will be as forthcoming as before, if not moreso. In our fast-changing information environment, we should not regulate and legislate by anecdote. We need lawmakers to ensure our access to the data we need to help keep users safe.

Link:
Its Time to Open the Black Box of Social Media - Scientific American

Chinese leaders stick to Covid controls as the virus spreads and forces a Beijing luxury mall to close temporarily – CNBC

Major luxury goods mall Beijing SKP, pictured here in 2021, said Friday it would close with no reopening date specified after the city confirmed three Covid cases in an apartment community nearby.

Qilai Shen | Bloomberg | Getty Images

BEIJING China showed few signs of loosening its zero-Covid control policies as the country continued to battle its worst outbreak in two years.

Some businesses have resumed production in Shanghai and northern China. But the capital city of Beijing temporarily closed Friday a large luxury mall and non-essential businesses in one area to control an ongoing spike in cases stemming from the highly transmissible omicron variant.

China's top leaders said at a meeting Friday that Covid and the Ukraine crisis have increased challenges and uncertainties for the domestic economy, according to state media. Chinese President Xi Jinping headed the economic meeting, held regularly with China's leadership, known as the Politburo.

The leaders noted the mutation's new characteristics and said the country should stick to its "dynamic zero-Covid policy," state media said.

That implies the Covid policy will not ease in the near term, said Bruce Pang, head of macro and strategy research at China Renaissance. He said the meeting reflects how headwinds for growth are stronger than previously expected, and noted leaders called for more policy support in order for China to achieve its GDP target of around 5.5%.

Many investment banks have cut their China GDP forecast, one as low as 3.9%, in the wake of new Covid cases and controls.

Mainland China reported more than 5,600 new confirmed Covid cases with symptoms for Thursday, with the majority resulting from cases in Shanghai that had previously showed no symptoms.

The southeastern metropolis, home to the world's busiest port, has kept residents mostly in lockdown for more than a month in an attempt to control the local outbreak. Other parts of the country, including Beijing, have locked down neighborhoods, conducted mass virus tests and restricted travel in an attempt to control new spikes in cases.

Beijing reported two new Covid cases without symptoms and 47 with symptoms similar to the daily count for much of the last week. More than 15 other province-level regions reported new cases, including the export-heavy Shandong, Guangdong and Zhejiang provinces.

Specific virus control measures may "sacrifice" the convenience of life for some regions and people, affecting the economy in the short term for some localities, Liang Wannian, head of the Covid response expert group under the National Health Commission, said at a press conference Friday.

But that will allow the largest area and number of people to work and live normally, for a cost-effective balance, he said.

Liang on Friday described the virus situation in Shanghai and Beijing as seeing significant improvement. He said the dynamic zero Covid policy does not mean zero infections, as variants such as omicron mean authorities cannot ensure that no single case appears.

Shanghai has tried to allow some major businesses to resume production by releasing a list about two weeks ago with 666 companies that could get priority for restarting work.

Just over a third, or 247, of the companies are foreign-funded businesses, the Ministry of Commerce said Thursday.

German automaker Volkswagen and U.S. electric car company Tesla have resumed production, the ministry said, noting other foreign businesses have applied to join the second batch of whitelisted companies. The ministry said it would make every effort to ensure resumption of work.

Changchun city in the northern province of Jilin began resuming normal operations Thursday after weeks of lockdown, according to an official announcement.

Getting truck shipments between ports and factories remains a challenge.

Merchants have had to pay more for logistics costs now about 25% of selling prices, up from 15% or 20% at the start of the pandemic Diane Wang, founder and chairperson of Chinese e-commerce site DHgate, told CNBC on Thursday. The company primarily works with small Chinese companies selling abroad.

But with existing inventory, stay-home and lockdown orders would have to last for at least three months in order to really affect the businesses, she said.

Schools in Beijing closed Friday, beginning the upcoming Labor Day holiday one day earlier. The last day of the long-weekend holiday in China is Wednesday, May 4. Many of the Covid cases in the city in the last week have been traced to schools.

Major luxury goods mall Beijing SKP said Friday it would close with no reopening date specified after the city confirmed three Covid cases in an apartment community nearby. Beijing city government has claimed the department store's sales reached 17.7 billion yuan ($2.72 billion) in 2020 to rank first in the world.

State media said gyms, movie theaters and other non-essential businesses in the surrounding area would need to close, while the city conducted mass tests of residents and employees there through Tuesday, May 3. The report did not mention stay-home orders, but discouraged people from going out.

Nearby, in an area one subway stop south of the main business center, local authorities have extended a lockdown that began Monday until the upcoming Tuesday, May 3. Authorities also expanded the scope of the lockdown area slightly to the south.

The affected areas above are in Beijing's main business district that began three days of mass testing on Monday.

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Chinese leaders stick to Covid controls as the virus spreads and forces a Beijing luxury mall to close temporarily - CNBC

Why Marketers Are Returning to Traditional Advertising – HBR.org Daily

Digital marketing technologies and their ecosystems have dominated growth in marketing budgets for over a decade. As consumers have shifted their attention from stationary media to perpetual media on the go, traditional advertising lost some of its appeal. In turn, marketers pivoted investments from television, radio, newspaper, events, and outdoor advertising to digital channels, from TikTok to TechTarget.

For the last decade, marketers have consistently predicted that their traditional advertising spending would decline. According to data from the 28th Edition of The CMO Survey, on average, marketers reported an annual decrease in traditional advertising spending of -1.4% between February 2012 and 2022, compared to an annual increase of 7.8% for overall marketing budgets during this same period.

However, recent evidence suggests that a shift is underway. In contrast to the historical trend, in August 2021 and February 2022, marketers predicted that traditional advertising spending would increase by 1.4% and 2.9%, respectively.

Consumer-facing companies are leading the shift, with B2C service companies predicting the largest increase in traditional advertising spending (+10.2%), followed by B2C product companies (+4.9%). Further, and somewhat ironically, companies that earn 100% of their sales through the internet are leading this inflection predicting an 11.7% increase in traditional advertising spending over the next 12 months.

So, why is traditional advertising on the rise, and will the trend continue? We see seven drivers behind the shift.

As consumers are spending most of their waking hours online, it seems they are becoming increasingly numb to conventional digital advertising and engagement. They report frustration and negative brand association with digital advertising clutter that prevents them from reading an article, watching a video, or browsing a website. For example, a HubSpot survey found that 57% of participants disliked ads that played before a video and 43% didnt even watch them. As a result, marketers are looking for a way to cut through the noise.

Traditional ads, on the other hand, are experiencing increased engagement. MarketingSherpa reports that more than half of consumers often or always watch traditional television advertisements and read print advertisements that they receive in the mail from companies they are satisfied with. Indeed, research by Ebiquity suggests that traditional media channels led by TV, radio, and print outperform digital channels in terms of reach, attention, and engagement relative to costs. This performance differential is amplified as costs of online advertising have increased, especially when accounting for impression, click, and conversion fraud whereas the costs of traditional media have fallen. It simply makes good economic sense to rebalance spending away from digital clutter.

The same MarketingSherpa survey found that the top five most trusted advertising formats are all traditional, with customers trusting most print advertising (82%), television advertising (80%), direct mail advertising (76%), and radio advertising (71%) to make purchasing decisions. Similarly, it found that British and American consumers trust traditional advertising such as television, radio, and print more than social media advertising. As a result, marketers can use traditional advertising to build brand credibility and trust with jaded buyers.

For years, marketers have relied on third-party cookies to track website visitors, using detailed data on their search preferences to improve the user experience and target consumers with personalized ad experiences. However, with Google phasing out the third-party cookie on Chrome browsers by late 2023 and Apple implementing changes to its iOS14 operating system, the death of third-party cookies is imminent. The CMO Survey found that 19.8% of companies invested more in traditional advertising (outside of online approaches) as a result.

Because of this inevitable change to the advertising landscape, marketers will be forced to rely on segmentation methods that hew closer to traditional advertising models. Without advanced data-driven targeting, marketers will need to refocus on extending their reach.

Podcasts are a form of digital media. However, unlike banner, display, and other social advertisements that often appear within consumers everyday browsing, podcasts use an on-demand approach that is more similar to traditional radio. And this is one reason advertising succeeds. According to Ads Wizz, Podcasts saw a 51% increase in available inventory, a 53% increase in new podcasts, and an 81% increase in podcast ad impressions.

In addition to reaching over 100 million monthly listeners, podcast ads are effective because listeners trust their podcast hosts and are genuinely influenced by their endorsements. In fact, Edison Researchs Super Listeners 2020 study found that 45% of podcast listeners believe the hosts of their favorite podcasts actually use the brands mentioned on their shows. According to the same study, almost half of podcast listeners pay more attention to podcast advertisements than those of any other format. Given the match of target market to podcast content, podcasting has proven to be an effective way to get a companys brand in front of a well-suited and attentive audience.

Digital technology can leverage traditional tools in powerful and surprising ways. For example, who would have thought that direct mail would be resurrected? Thats exactly what happened when mailers are paired with a QR code that consumers can scan to learn more. Furthermore, as Madison Taylor Marketing shares, unique URLs and QR codes allow marketers to gather extremely granular data, permitting them to develop robust marketing analytics regarding ROI and attribution, and eroding the advantage of digital channels.

Marketing is an art and a science of contingencies and context. This means that sometimes traditional advertising is a perfect fit for some brands, markets, and messages. For example, broadcast TV continues to offer an ideal platform for emotional storytelling ads, such as the clever Welcome Back Guinness ad that marked the reopening of pubs and restaurants following the Covid-19 lockdown. New addressable TV solutions, such as by Finecast, now enable advertisers to precision target viewer segments across on-demand and live-streamed TV, thereby eroding the targeting advantage of online channels.

The CMO Survey showed that 54.8% of marketers track digital marketing performance in real time, with an additional 35.2% doing so quarterly or weekly. At the same time, marketers are also becoming skeptical of the hyped returns of digital media, because the platforms control both the advertising inventory and its effectiveness measurement. This has raised credibility concerns related to ad fraud and the worry that digital advertising may be far less effective than reported.

The digital promise of hyper-targeting and personalization is also under scrutiny. For example, recent academic research by Jing Li and colleagues published in the Journal of Marketing shows that retargeting can actually backfire if done too early. And research in computer science has shown that personalization can lead to consumer reactance, especially when consumers are unfamiliar with the brand. In short, marketers are learning that the advantages of digital media can be a double-edged sword and are becoming more cautious about blindly embracing it.

Pundits have long predicted the demise of traditional advertising. However, it is alive and well and headed for growth for the first time in a decade. When used together, traditional and digital marketing can reach more audiences, build and keep trust, and motivate buying from consumers who otherwise might tune out marketing messages.

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Why Marketers Are Returning to Traditional Advertising - HBR.org Daily