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AssessmentsFeb 20, 2020 | 10:00 GMT
This photo shows workers at Dongfeng Motor's joint venture with Honda in Wuhan, China.
China's Virus Outbreak Has Dented Its Automakers' Bottom Lines
China’s deadly coronavirus outbreak has left few of its economic sectors unscathed, but the effects of shutdowns on its auto manufacturing operations have been -- and will continue to remain -- especially acute. Hubei province, the epicenter of the outbreak, has asked companies not to restart shuttered operations until at least Feb. 21. Production for a number of auto companies outside of Hubei had already been delayed past the Lunar New Year holiday until Feb. 10, and in some cases, production still remains offline. Nevertheless, even once the outbreak subsides, Chinese consumer demand for automobiles will take a substantial hit this year, with estimates showing that demand could fall by at least 5 percent because of the economic slowdown associated with the coronavirus outbreak.
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AssessmentsJan 31, 2020 | 18:47 GMT
This photo shows a masked vendor and customers of his wares in an alley in Wuhan, China, on January 31, 2020.
Measuring the Economic Impact of the Coronavirus Outbreak
The coronavirus outbreak that has killed scores and sickened thousands is set to deliver a significant blow to China's already-weakening economy. Quarantines and travel bans put into place to limit the spread of the illness already have disrupted one of the country's busiest travel and spending periods of the year, the Lunar New Year holiday, which began Jan. 25. The lockdowns have created major supply chain disruptions in Hubei province, the key Chinese transit hub and major manufacturing center for automobiles, fiber optic cable and machinery where the outbreak started. Public transportation, including trains, planes and ferries in and out Hubei -- whose provincial capital, Wuhan, was the epicenter of the outbreak -- have been suspended, with the freedom of movement curtailed for some 60 million people. The disruptions are not limited to the province, however, as business and industrial activities across the nation, already substantially slowed or even suspended
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AssessmentsSep 15, 2017 | 12:22 GMT
Governments and automakers are charting the transition from gasoline- and diesel-powered vehicles to electric ones, though it will be decades before all fuel pumps go the way of the dinosaur.
The Automotive Market Switches Gears
Over the past several decades, numerous technologies have emerged that could rival and eventually replace the internal combustion engine and, with it, oil. Though vehicles powered by natural gas or hydrogen are gaining ground, particularly in Asia, electric vehicles -- both hybrid and fully battery-powered models -- are poised to give gasoline- and diesel-fueled vehicles the biggest run for their money. Falling costs and rising energy density stand to level the playing field between electric cars and their more traditional counterparts. By 2040, researchers project that fully electric vehicles and hybrids will account for more than half of all new automobiles purchased worldwide. Government initiatives will be crucial to incentivize and facilitate the adoption of electric vehicles, and countries such as France, the United Kingdom and China are doing their part to kick-start the transition.
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ReflectionsJan 25, 2017 | 01:10 GMT
A Chinese Nuclear Deterrent Aimed at the U.S.
A Chinese Nuclear Deterrent Aimed at the U.S.
Deployments of nuclear-capable missiles always send a message, but it isn't always immediately clear who the target is. Chinese media reported Tuesday on the possible deployment of long-range Dongfeng-41 intercontinental ballistic missiles in northeastern China close to Russia, triggering speculation in Russian media about China's intent. One possibility that has been raised is that the move was in response to potential U.S-Russian negotiations over arms treaties. Kremlin spokesman Dmitry Peskov rebutted the idea, adding that Russia does not consider China's positioning of the nuclear-capable systems in Heilongjiang province a threat. And with a quick look at the Chinese nuclear missile force structure, the Kremlin's reaction makes sense: The nature and capabilities of the Dongfeng-41, along with its deployment near the city of Daqing close to the Russian border, mean that the systems are far more likely intended as a nuclear deterrent against the United States.
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