Interviewer:”It’s so good to see you. Thank you for joining us. How’s your how’s your 2020 theme?”
Huang Hung: my 2020 started totally normal. in January, I went to Paris, I did my interview for the Fashion Week there, came back to Beijing January 22nd and finding things a little bit tense because there were a lot rumors having lived through SARS. I wasn’t that concerned and on the 23rd, I had a friend of mine from New York come to my house who had a flu and we had dinner together and another friend who came and who left the next day for Australia for vacation on an airplane. So we were not taking this terribly seriously until there was a lockdown and we’ve seen.
Interviewer:” That Echo around the world. I think still some people find it hard to understand the magnitude of some of the measures that China took. I mean, what else are we missing about?
Huang Hung:” China’s response in all of this, you know historically we’re just such a two very different countries in terms of culture and history. I mean, these are two completely different human experiences for its people. so, for China, when the lockdown happened, people were okay people are okay with it because they think that’s what a good parent should do you know, if a kid gets sick, you put him in the other room and you lock him up and make sure that the other kids don’t get sick and they expect that out of the government. But when it is outside of China from America, it becomes a huge issue of the right political thing to do and whether it’s infringing on personal freedom so the issues that you have to deal with in a democratic society are issues that one does not have to deal with in China. I have to say that there is a word in Chinese that doesn’t exist in any other language and the word is called “quai.” it is what you call a kid who listens to his or her parents. So I think we are very “quai” as a people. We are very why we have this. This sort of authoritarian figure that Chinese always look up to and they do expect the government to actually take the actions and they will deal with it. However much suffering there is they feel that okay, if you know big brother says that this has to be done. then, it must be done and that really defines China as a separate mentality.
Only as, say, people in Europe and America, do not have a sense of collective responsibility. Sometimes it feels kind of a little absent from this culture at the same time. There are I think valid concerns around surveillance and kind of data privacy things like that. What is the balance here? And what is the right trade-off between surveillance and freedom. I think in the internet age it is we’re??? between China and the US. I think when you take individual freedom versus collective safety, there has to be a balance somewhere there With surveillance, you know, the head of Baidu, Robin Lee, once said the Chinese people are quite willing to give up certain individual rights in exchange for convenience.
Actually, he was completely criticized in the Chinese social media, but I think he is right. Chinese people are willing to give up certain rights. For example, we, Chinese, mostly are very proud of the payment system we have which is where you can go anywhere just with your iPhone and pay for everything and all they do is face scan. I think that probably freaks Americans out, you know China right now. We’re still under semi-lockdown Also, if you go anywhere, there’s an app where you scan and you input your mobile phone number and the app will tell the guard at the entrance of the mall. For example, where you have been for the past 14 days. Now when I told that to an American, she was horrified and she thought it was an invasion of privacy l. on the other hand, as someone who Is Chinese and have lived in China for the past 20 years, although I understand that American mentality, I still find it I’m Chinese enough to think I don’t mind this and I am better. I feel safer entering the mall because everybody has been scanned. Whereas I think individual freedom is an abstract concept.
Looks like this is actually really meaningless. So I think the West really needs to move a step towards the east and to think about the collective as a whole rather than only think about oneself as an individual. the rise of antagonistic rhetoric between the US and China is obviously troubling and the thing is that countries are interlinked whether people understand we have supply chains or not. … This is the most horrifying thing that came out of this the kind of nationalistic sentiments on both sides in this pandemic because I’m an optimist. I think we will come out of this.
Both sides will realize that this is a fight that the entire human race have to do together and not apart. despite the rhetoric, the global economy has grown to such a integration that decoupling will be extremely costly and painful for both United States and China.
Excerpted from the YouTube video with the same title, hosted by China Teacher Brand, June 25, 2020
…. Well, you might have freedom to listen to different voices. You might have freedom to listen to different media. You have the freedom to go on social media. You have the freedom to speak and say What do you want. It is argued whether that is a good thing or a bad thing talking about that. But I want to talk about one sentence that a lawyer mentioning in an interview about China where we live now. The most important freedom that I can think of is an honest one, freedom from fear. And that is one freedom that a lot of immigrants, a lot of people of color in America in particular, don’t have. That’s a freedom that you don’t have,but we do in China. We might not have a lot of freedoms. There are some freedoms that we don’t have. We don’t have freedom to get on YouTube, Facebook. We didn’t have freedom whatever you want to list. But l, as a migrant to China, I understand the idea of freedom from fear. I came to China because I was tired of living in fear; petty crime serious crime, indiscriminate crime, was a problem in my country, and I heard other YouTubers talk about that China is the safest place in the world. …. The sense of safety comes from that freedom of fear. Everybody talks about the different examples: You can walk around in the middle of the night, man a woman, and feel safe. I can leave my car unlocked and not worry. Okay, obviously things could go wrong, the right things could happen.
But it’s not like, “oh my God, what’s going to happen if I park here, in my country? For example, if you park by the roadside, you need to check all your mirrors, make sure that nobody’s following you, then you can open the doors of your car. And nobody’s around if you’re gonna get in your car; you do the same thing if you unlock the doors: if anybody us near my car. … I mean and that is no way no way to live. So, I wanted to make this video to tell you, guys, that well, you might have some freedoms out there. There is freedom.
The Freedom from Fear is the one that brought me to China, is the one that brings a lot of people, that follow a lot of Latinos like myself in China. We are treated with respect; we have certain level of freedom. But l, more importantly, I’m not afraid for my life. I’m not afraid for my property. I’m not afraid to walk out on the street. That gives a quality of life that you can imagine. You can’t compare. So, aside from opportunities, well, job money, beautiful environment, friendly people saying hello everywhere; apart from all this, we have freedom from fear….
The global shipping industry is shifting to low-sulphur fuel in response to global calls for cleaner shipping . At the start of the year, the International Maritime Organization (IMO) lowered the sulphur content limit in ships’ fuel oil from 3.5 percent to 0.5 percent. Since March 1, the carrying of fuel oil not meeting the tougher standard has also been banned, all under the International Convention for the Prevention of Pollution from Ships (MARPOL). Ships fitted with a sulphur scrubber, or exhaust gas cleaning system, are still allowed to carry and use heavy fuel oil, since this apparatus can keep emissions to within the new limit. The changes are expected to see sulphur oxides emissions from global shipping drop by 77 percent, thereby reducing health issues including asthma, stroke, lung cancer, cardiovascular and pulmonary diseases.
China has been monitoring shipping within its waters for compliance with the new rules. The media has reported marine authorities in Qingdao penalizing a Korean vessel on January 3, and then a Panamanian one in Weifang on January 19.
The tougher limit will have a major impact. Cutting sulphur in fuel oil from 2.5 percent to 0.5 percent reduces emissions of sulphur oxides by 80 percent and of particulate matter by up to half, while a reduction to 0.1 percent reduces sulphur oxides by 95 percent or more, according to a 2017 report jointly published by the Natural Resources Defence Council (an environmental advocacy group) and the Transport Planning and Research Institute of China’s Ministry of Transport. Meanwhile, if very-high-sulphur heavy fuel oil were to be replaced with 0.5 percent alternatives, particulate emissions could drop by up to half.
According to a local official quoted in the Economic Daily in 2018, data from Baoshan Monitoring Station, near Shanghai’s Waigaoqiao port, showed a much larger drop in sulphur oxides than for the city as a whole.
Stricter policies laying a foundation
China did have policies on shipping emissions before the IMO’s restrictions came into force.
In 2016, the Ministry of Transport starting imposing emission control areas (ECAs) in the Pearl and Yangtze deltas and the Bohai Sea, with a staged reduction of fuel oil sulphur content to 0.5 percent. This started with some trial ports in 2016, was expanded to “key ports” in 2017, to “all ports” in 2018 and the “entire ECA” in 2019. In July 2018, a State Council three-year action plan for tackling air pollution said China would “by the end of 2019, expand ECAs to cover [all] key coastal ports.” Four months later the transport ministry announced an ECA expansion – to 12 nautical miles outside its territorial baseline along the entire coast. ECAs also expanded to important shipping routes on the Yangtze and Xi rivers (a major tributary of the Pearl River).
Those ECAs form the basis for implementing the sulphur restrictions. Freda Fung, consultant to the Natural Resources Defense Council’s Green Ports and Shipping project, told China Dialogue the ECAs had given regulators necessary experience: in collecting samples, using high-speed testing equipment, and remote sensing. Monitoring fuel oil quality became a focus for the marine authorities once those policies were put in place. Now, remote monitoring of emissions allows the use of non-compliant fuel oil to be identified from afar.
In November 2017, 13 ministries including the Ministry of Transport jointly issued guidance on ensuring supply of low-sulphur fuel for shipping, along with introducing joint supervision. The document encouraged Chinese refineries to produce low-sulphur fuel oil, called for a faster update to fuel oil standards, and boosted oversight of the sector.
Freda Fung explained oil firms have been planning production of low-sulphur fuel oil since last year. An IMO database of shipping fuel oil consumption shows compliant fuel oil had been available in many countries before the tougher rules were realised.
In January, OilChem China, a provider of energy industry statistics, calculated that global demand for low-sulphur fuel oil for shipping would be 135 million tonnes in 2020 – leaving a 40 percent supply gap.
Chinese refiners are boosting production. According to OilChem China, the country produced 76,000 tonnes of low-sulphur fuel oil in 2019, while testing techniques. Planned output for 2020 is 18.15 million tonnes. For comparison, the EU and the US produce a combined 20 million tonnes a year.
Cleaner fuel, or scrubbers?
The IMO allows for an alternative emissions-reduction method: continuing to use high-sulphur fuels but with a sulphur scrubber installed. However, the industry seems to prefer switching fuels. Only around 4,300 vessels – less than fivepercent of the total – worldwide have installed scrubbers according to data from Norwegian shipping registrar DNV GL.
Which is the better option? In 2019, Wu Huimin, a cruise liner captain with Royal Caribbean, said at a media event to discuss the restrictions, organised by green NGO Tianjin Binhai Environmental Protection Advisory Service Centre, that sulphur scrubbers are a more economical option: the switch to low-sulphur fuel will see a 100,000-tonne ship burn an extra $2,000 of fuel every hour; while a sulphur scrubber costs $1 million. So after 500 hours of sailing, the scrubber is the better deal.
But at the same event Peng Chuangsheng, deputy chief engineer with the China Waterborne Transport Research Institute, said price changes and the lifespan of a sulphur scrubber need to be taken into account, adding that low-sulphur oil is the “natural choice” for the shipping industry. He pointed out that sulphur scrubbers have an expected lifespan of five years, but due to a lack of testing, actual longevity is unknown. “If it doesn’t last for five years, and the price of low-sulphur fuel comes down, it might not earn back its cost.”
Freda Fung told China Dialogue that the Ministry of Transport’s implementation of the sulphur restrictions prevents ships from dumping wash water from sulphur scrubbers in an ECA. Scrubbers also take up space that could be used for cargo.
Low-sulphur fuel – expensive, for now
Although low-sulphur fuel has become the shipping industry’s main choice, it remains pricey – $200-250 more expensive per tonne than 3.5 percent sulphur fuel.
Nature Fields, an NGO working on port air pollution, said in an article on its WeChat account that research shows this increases the cost of each trip through an ECA by 100,000 euros (about 770,000 yuan). According to Nature Fields, this may make shipping firms more inclined to pay fines than use the pricier fuel.
Commenting on this at the media event, Peng Chuangsheng said low-sulphur fuel will become cheaper as it is more widely used, while high-sulphur fuel will get more expensive as production and demand drops, shrinking the gap between the two. Freda Fung told China Dialogue that the shipping industry has always had a surcharge system, whereby shipping firms pass on increased fuel costs to cargo owners. The major firms raised those surcharges in anticipation of the new restrictions and are not themselves bearing all the extra cost, making the switch easier.
Recent sharp drops in crude oil future prices have also affected low-sulphur fuel prices. According to the JOC Group, a shipping information and services provider, the cost of very low-sulphur fuel in Singapore has collapsed by 70 percent since early January, from $740 a tonne on January 8 to $218 on April 21. Rotterdam has seen a similar fall: 67 percent since early January.
Pollution from ships creates lines of clouds that can stretch hundreds of miles (Image: NASA Earth Observatory)
Freda Fung also said price isn’t the only factor shipping firms consider when deciding to comply with an ECA. Breaches would mean reputational damage, fines and other economic losses. In China, ships found breaching ECA rules will be singled out by regulators for particular scrutiny and are more likely to be boarded for checks. This means more time at anchor and so delays to schedules and damaged reputations. Overseas, vessels may end up on blacklists, perhaps even publicly, again damaging reputations. Fung stressed: “Strict enforcement, oversight and transparency are crucial to encouraging the use of compliant fuel oil.”
Monitoring still weak, fines should be higher
If the restrictions are to be effective, strict enforcement by the marine authorities is needed.
Currently, officials in large ports around the world are boarding ships to check emissions. Data collected by the Tianjin Binhai Environmental Protection Advisory Service Centre shows that in 2018 over 20,000 routine checks were made at Tianjin’s port – but in 80 percent of those checks no vessels were boarded. The huge number of vessels and complex itineraries is a major challenge for marine law enforcement officials.
Freda Fung agreed. She said that monitoring and oversight capacity in the three areas where ECA trials were run in 2016 – the Yangtze and Pearl deltas and the Bohai Sea – is in place, but in smaller port areas more staff are needed.
Responding to this, Li Mingjun, senior engineer with the environmental resources bureau of the Ministry of Transport’s Planning Research Institute, said at the media event that a big data analysis of records could find the companies and vessels with a history of breaches, and identify the routes and refuelling points more likely to see illegal behavior. This would allow the authorities to make early decisions about which vessels should be checked.
Technology has a greater deterrent effect
Ma Dong, project manager with the policy and research standards office at the Ministry of Ecology and Environment’s Vehicular Emissions Control Centre, added that technology will be needed in the future – throwing staff at the problem is not enough. He pointed out that Hong Kong University of Science and Technology has a team researching automated monitoring, while remote sensing is being researched in Shanghai. “Technology has a greater deterrent effect,” he said, “and we should tell the industry that we can monitor them, and make sure they don’t take chances.”
Ma also hopes to see joint enforcement across regions. Even within China, integration across regions would help sharing of information and methods. Internationally, more exchange and cooperation across the Belt and Road Initiative countries would help China share enforcement data, such as breaches, with international regulators, thereby reducing enforcement costs.
Another issue is that low fines may be reducing the impact of law enforcement. Currently, fines in China are imposed according to Article 106 of the Air Pollution Law – which only allows for relatively small fines, of between 10,000 ($1,400) and 100,000 ($14,000) yuan.
In practice, fines have stayed at the lower end of that range. A study by Clean Air Asia and Nature Fields found that fines issued in China were far below the maximum allowed. Of 261 fines issued in 2016-2017, the average fine for using non-compliant fuel was only 15,000 yuan. Cheng HuiHui, senior researcher with Clean Air Asia pointed out there is no link between the size of the fine and the quality of the fuel: In Shenzhen, two vessels were given fines of 10,000 yuan – despite the fact that one was using fuel with 37 times the permitted quantities of sulphur, and the other only 2.4 times. This reduces the deterrent effect of the restrictions. They therefore called for the upper limit on fines to be removed.
Gao Baiyu is a researcher on China Dialogue’s Beijing editorial team. She has a master’s degree in computational journalism from Syracuse University.
This article appears courtesy of China Dialogue Ocean and may be found in its original form here.
Excerpted by Tjan Sie Tek, from “Blondie in China: What I miss about China,” 21 June 2020
It’s not just the food that I miss in China. It’s also the culture that surrounds food and how food is such an integral part of Chinese culture and day-to-day social interaction as well as conversation. I would say a good 50% of the conversations I have with my good friends in China are about food about what we want to eat what we ate yesterday what we want to eat next week. What we’re planning on eating for our birthdays is always the top of the list of good conversations topic.
I just love how in China food really brings people together. There’s no doubt about it; even the way that Chinese eat, the eating custom, which is to share everything put in the middle of the table. Everyone’s helping themselves. It’s a shared thing that you do with friends that you do with family. You don’t have your own portion that you eat by yourself. It’s a shared experience. If you have been in China, you’ve probably gone to a Hot Pot restaurant and enjoyed sitting around a table, having the best time, eating your guts out with friends. It’s such a social activity or meeting up with a group of friends after a big night of partying at 3:00 a.m.
… It is basically the barbecued meat that you eat on the street, that you have these little plastic chairs that you sit on and you put it on with a big group of friends. You eat, you drink, you love, you be married. It’s just so much fun. I really missed this element of being in China. About the very wide differences between food prices in China and those in Sydney, Australia Another thing which I really miss about China is food and drink are a lot cheaper.
Let’s do a little comparison here. I’ve just come to get myself a hot oolong tea to you from a local milk tea place. It’s the same thing that I would order when I’m in China. This would cost me anywhere from 10 to 13 RMB which is like two (Australian) dollars, or two and a half dollars. This cost me $5, and the same with food I would generally say there’s a three to five-time markup on any dish that you get in Sydney compared to its prices in China. Here (in China), for example, a bowl of rice would cost you three RMB and, and (in Sydney) it cost you $3. That’s essentially a five-time markup. The other day, I went into a Taco Bar and had a compound chicken. It cost me $28. In China, I could probably get that at 28 RMB; again a five-time markup. Things are just a lot more expensive here (in Sydney) for essentially the exact same thing. I miss is cheap. Taxis so much in for me from my Sydney standpoint. Taxis are just ridiculously cheap in China.
They are just ridiculously cheap to the point where I can cross the entire city of Beijing for the price it would take me to go one suburb away in Sydney. It’s absolutely ridiculous here the price of taxis; Probably the same for a lot of other Western countries: taxis are so expensive. But in China you can just get into a cab, go where you want, do what you want, if you just feel very mobile….
The things I’m really missing about China is just walking around and getting that energy that only in China Vibe. Honestly, you can walk in a straight line in a tiny City for hours and not be bored. Also, the cities are really, really cute. So you can literally walk in a straight line in a tiny City for hours and not even be halfway through it. If you’ve been to China, you’ll know what I’m talking about. This is vitamin, energy; walk around that you’ll always be pausing: interesting things; food stalls, people singing, people dancing….
[14:34, 6/21/2020] Romo Tjan ST: According to data from the People’s Bank of China (PBOC; central bank of China) as of the end of 2019, China hosted a total of 11,352 billion bank accounts, showing a YoY increase of 12.07% and an acceleration rate of 2.24% compared to the end of the previous year.
As of the end of 2019, there were a total of 68.3687 million bank accounts belonging to agencies and institutions that had been opened in China, which means an increase in YoY (annual) growth of 11.73% and an acceleration of 0.15% compared to the end of 2018.
The total number of private bank accounts reached 11.284 billion, which means a YoY increase of 12.07%, and an acceleration of 2.25% compared to the end of 2018. That also means that every Chinese, including newborns, currently has 8.09 bank accounts . In Indonesia: total bank accounts are 301 million, so there are 1.18 accounts per person, which includes babies.
There are 7.673 billion debit cards and only 746 million dual cards (or debit plus credit cards) in China.
PBOC data shows stable growth in the number of bank cards, with a total issuance of 8.419 billion bank cards in China as of the end of 2019, representing a YoY growth of 10.82%.
Among that number, the number of debit cards (KD) that have been issued reached 7.673 billion, representing a YoY growth of 11.02%. That means every Chinese has 5.5 debit cards.
The number of dual-function cards (credit and debit cards) reached 746 million, YoY growth of 8.78%. So, every Chinese person has 0.54 double card, which means an increase of 8.36% from 2018.
In Indonesia
As of the end of March 2020, according to www.bi.go.id, the number of credit cards was 17.6 million, or 0.066 credit card per person, which included babies; 9.343 million ATM cards, and 180 million debit cards, or 0.67 combined double card per person, which includes babies. Conclusion: in Indonesia, there are still many opportunities for banks and other financial institutions to issue ATM cards, debut cards, and the like, especially if the economy is moving forward.
In the United States (US)
There are 1.06 billion credit cards; 70% of US people hold at least one credit card; 40% of Americans shop through credit cards; 14% of Americans have at least 10 households / person !!!
Debit cards account for 91.14% of the number of bank cards that have been issued in China.
Chinese people prefer to use cellphones for any payment
In China, especially in urban areas, it is difficult to pay for our transactions via credit cards except in luxury places, which are generally for foreign people and tourists. The majority of Chinese people transact through their cellphones, which include payments to taxi drivers, barbers, roadside traders, using the Alipay or WeChat Pay, which together control 90% of the transaction market via mobile phones there.
This electronic payment method is perfect for our current situation, namely contactless (avoid contact) with Bani notes and coins.
Western banks are afraid of Alipay and WeChat Pay coming to the West
Therefore, banks in other countries, especially the US, are afraid of the arrival of Alipay et al because US banks might later be able to only become business and personal creditors in large numbers. Shareholders and directors of Visa, MasterCard, Amex credit cards et al plus banks and financial institutions that the issuers of credit cards must have started to have difficulty falling asleep for fear of losing commissions of around USD 30 billion (IDR 450 trillion) per year from transactions through credit cards. Last year, Bloomberg broadcast a video entitled “U.S. Banks are terrified of Chinese Payment Apps (US banks are very scared of Chinese Payment Applications)”
At present, checks are still dominant in business payment transactions, salaries etc. The rest is via credit card. Americans are known for their “high standard” lifestyles, but their incomes cannot cover those lifestyle costs. As a result, their lives are like “bigger pegs than poles.”
Therefore, the total number of US citizens’ credit card loans is around USD 1.2 trillion (IDR 18,000 trillion) by the end of 2019. So, every US family owes a credit card debt of around USD 10,000 (IDR 150 million). Because of the pandemic, the number will rise rapidly in 2020 and there will be many defaults or arrears for months because there are around 40 million unemployed people in the US today. [14:56, 6/21/2020] Romo Tjan ST: The total amount of Foreign Direct Investments in Shanghai, China, exceed that of Indonesia, and the Strategy to attract foreign direct investors By Tjan Sie Tek, 15 June 2020
The Shanghai Municipal Trade Commission reports that 738 multinational corporation regional headquarters have been established in Shanghai City by the end of 2020.
In addition, 468 foreign research and development (R&D) centers, which include that of Microsoft, have been established there as of the same date.
All of these investments totaled USD 263 billion as of the end of April 2020. The total amounts of FDI in China as of the end of 2016, 2017 and 2019 were USD 1,354 trillion, USD 1,458 trillion and USD 1,637 trillion, excluding FDI stock in Hong Kong SAR and Macao SAR, which are special government areas of China.
Despite the pandemic, foreign capital flows to Shanghai rose 4.1 percent year on year (yearly) to around USD 6.46 billion in the first four months (or January-April) 2020, officials at the Singapore-Shanghai Economic Cooperation Roundtable Conference on June 1, 2020.
In comparison, FDI to Indonesia amounted to USD 6.4 billion, the lowest figure for the past 1.5 years, during January-March 2020, down 9.2% YoY (tradingeconomics.com; UNCTAD World Investment Report 2019).
A total of 15 MNC regional headquarters and seven new foreign-funded R&D centers were established in Shanghai in the January-April 2020 period. The city is targeting the establishment of 40 MNC regional headquarters and 15 new R&D centers for 2020 (china-briefing.com , 10 March 2020)
Chinese Government Subsidies for Foreign R&D Centers
The Chinese government subsidizes foreign R&D centers established throughout China, which include Hong Kong, Macau and Taiwan, with various tax breaks and steps. One goal: that the Chinese people can become researchers and developers of world-class products and services with a salary of USD 100,000 and above per person per year.
Therefore, they award many facilities to these investments if they comply with applicable standards (report on sjgrand.com: “China technology growth spurs tax deductions and incentives for expats working in the R&D field”).
The Shanghai Government’s aggressiveness in attracting FDI, e.g., TESLA electric car factory.
The Shanghai government is known to be very aggressive. For example, they succeeded in attracting TESLA, the world’s largest electric car manufacturer from the US, to invest a total of USD 5 billion: on October 17, 2018, the Shanghai Government sold industrial land use rights at only around USD 160 million, covering 86.4885 hectares (864,885 m2) for 50 years.
That price is a 50% discount from the market price of the surrounding land. The money is also the result of initial loans from Chinese banks worth about USD 350 million in 2018!!!
So, Tesla is “totally funded” by the Chinese central government and the Shanghai Regional Government because Tesla’s electric cars are the best in the world to date and the Chinese central government has targeted that by 2025, 25% (up from 20%), or between 6 and 7 million units, of all cars produced in China (around 27-28 million per year), must be electric cars.
In addition, giant banks owned by the central government of China: ICBC, CCB and ABC, and that owned by the Shanghai Regional Government: Shanghai Pudong Development Bank (SPDB) provide loans with “special” interest rates of up to USD 1.61 billion (IDR 24 trillion), with 80% of them collateral and the rest without collateral and is a credit that can be rolled over and over again.
The interest rate for the secured loan is around 4.24% per year, or 0.76% below the bank interest rate for prime customers in China which is around 5% per year in 2019 (scmp.com: “Tesla gets preferential rates on USD 1.61 billion of loans from Chinese banks …. “).
The Tesla plant in Shanghai is 100% foreign investment company and belongs to Tesla Motors Hong Kong, a subsidiary of Tesla Corp. Now it has begun production.
Beijing, December 17, 2019– International Data Corporation (IDC) China on December 10th released its China information and communications technology (ICT) market forecasts for 2020 and beyond – providing essential guidance for technology vendors and buyers in formulating digital transformation roadmaps and business objectives to navigate and succeed in the new decade, as the ICT industry evolves at an unprecedented rate.
The report was presented at “IDC FutureScapes: China ICT Market 2020 Predictions” forum at the Regent Hotel in Beijing, China. With its central theme The Future Enterprise: Hyperscale, Hyperspeed and Hyperconnected, the forum identified key technologies and scenario prospects for China’s ICT market in the next five years.
Over 300 business executives from technology vendors and tech buyers – as well as journalists from more than 20 leading media outlets – explored in the forum how organizations are built with hyperscale capacity, in hyperconnected ecosystems, moving at hyperspeed to become Future Enterprises.
Future Enterprises in the digital economy
Kitty Fok, managing director of IDC China, officially opened the event with her presentation, entitled Future Enterprises in the Digital Economy, noting that the digital economy has entered the fast lane. By 2022, global digital GDP will reach 46 trillion US dollars, accounting for 46% of the total global economic output, with an annual compound growth rate of 36% from 2018 to 2022, she said.
According to Ms. Fok, 2020 will be a critical year in which global political and economic environment would remain volatile. At the same time, China will be closing out its 13th Five Year Plan and transitioning into its 14th Five-Year plan covering the years from 2021 to 2025 and 10-year roadmap through 2030. Meanwhile, digital transformation will enter 2.0 – multiplied innovation powered by ubiquitous artificial intelligence (AI), developer’s population explosion, integration of cloud and edge computing, and redefined trust and automated solutions.
Ms. Fok also noted that new Future Enterprises will emerge and become the main players of the digital economy. Customers, capabilities, critical infrastructure, and industry ecosystems will become the four pillars of enterprise executives. With its Top Ten Predictions 2020 and Future Enterprises series, IDC China is well positioned to collaborate with partners in the era of “Hyper Scale, Speed and Connection” to help them identify business opportunities and drive growth in the digital economy.
Top Ten China ICT Market Predictions—Future Enterprises
Mr. Wu Lianfeng, Vice President and Chief Analyst of IDC China delivered a keynote speech based on the latest global and Chinese economic and technology trends entitled “Top 10 Predictions of China ICT Market-Future Enterprises”. Mr. Wu revealed the top ten China ICT market predictions as follows:
Prediction # 1: Digital innovation factories
By 2025, more than half of China’s top 500 enterprises will be software producers, more than 90% applications will be cloud native, 50% of code sourced externally and there will 1.5 times as many developers as today.
Prediction #2: Digital products and services trigger divides.
By 2023, about 50% of enterprises will ignore market-driven business investment, losing market share to existing competitors and new digital market players who make this kind of investment.
Prediction #3: IT strategy evolves to cope with disruption.
By 2024, the IT strategy of 70% of digitally advanced organizations will evolve into a hybrid of broad, flexible and self-help digital tools to replace the original “walled garden” of the IT-as-an-enabler model.
Prediction # 4: The role of CIO emerges as a new leader.
By 2023, 40% of CIOs will be entrepreneurial leaders who will develop their organizations into centers of excellence, planning for enterprise-wide collaboration and innovation.
Prediction# 5: Cross-Industry mashups to drive new revenue stream
By 2025, 30% of the revenue growth of Chinese enterprises will come from “white space” offerings that combine digital services from previously unlinked industries, and at least 25% of partners will be from previously unconnected industries.
Prediction #6: Platforms are modernized to build capabilities.
By 2023, 60% of organizations will aggressively modernize legacy systems through extensive new technology platform investments, driven by escalating cyber threats and the need for new capabilities.
Prediction #7: Inescapable AI deepens the digital divide.
By 2025, at least 80% of China’s new enterprise applications will embed AI. By 2024, more than 50% of user interface interactions will employ AI-enabled computer vision, speech, natural language processing (NLP) and AR/VR.
Prediction #8: Edge computing and 5G to spur new growth.
By 2023, more than 40% of China’s new enterprise infrastructure deployed will be at the edge rather than corporate data centers, up from less than 10% today. By 2024, the number of applications at the edge will increase 700%.
Prediction # 9: Digital trust takes center stage in next-generation businesses.
By 2023, 30% of China’s top 500 enterprises will name a Chief Trust Officer, who will orchestrate trust across security, risk, compliance, privacy and ethical business operations.
Prediction# 10: Digital employees create innovation competitiveness.
By 2021, the new Future of Work (FoW) practice will improve the capabilities and efficiency of digital employees by 30%, thus improving organizations’ productivity and ability to innovate.
To further contextualize the set of predictions for this year, senior analysts from IDC China shared their insights from the perspective of key ICT markets.
Emerging technologies market predictions
Mr. Zhenshan Zhong, Vice President of IDC China analyzed the current market situation and made future forecasts in four of the seven innovation accelerators. In his presentation entitled Emerging technologies for Future Enterprises, he elaborated on AI, Internet of Things (IoT), Next-generation Security, and Blockchain.
Mr. Zhong said that intelligence will be gradually embedded into the core business of future enterprises, but will be more constrained by compliance, ethics, and interpretability. In the future, connection technologies will further promote the integration of enterprise business and technologies and accelerate the process of service of enterprise products. Digital trust systems will become one of the core areas of competitiveness for enterprises.
Enterprise IT market predictions
Thomas Zhou, Associate Vice President of IDC China, focused on three major issues in his keynote speech: what are the current and future impacts of digital transformation on applications and infrastructure; how can the emerging infrastructure and hybrid cloud deployment support digital transformation on the IT platform level; and how can the emerging cloud native development and business middle platform support digital transformation at the business application level.
Smart Connected Devices market predictions
Antonio Wang, Associate Vice President of IDC China, unveiled the “Top 10 Predictions for China’s Smart Connected Devices Market in 2020” in his keynote speech. According to Mr. Wang, China’s end consumer market has seen the evolution from 3G to 4G and from PC to smartphone over the past decade. A structural change is imminent in China’s end consumer market, with the maturity of panel technology, 10nm processing, growing smart home market, gradual integration of cloud, economic structure, and gradual changes in user characteristics among others.
Mr. Wu concluded that China’s digital economy will also enter the fast lane. By 2023, China’s digital economy will account for 51.3% of the country’s total economic output, with digital products and services comprising the lion’s share. Becoming a Future Enterprise is a must to meet challenges and seize business opportunities. Future Enterprises are determined to digitally transform and can adapt to changes in the external environment. Mr. Wu said that with their digital operations scaled up, Future Enterprises typically have an innovation speed at least 10 times greater than that of their traditional counterparts.
As China has grown to become the world’s second largest economy, challenges and opportunities coexist with unique characteristics in many aspects. R&D spending continues to increase, a 1+1 strategy is imperative in the field of technology, industry leaders are becoming industry giants, the era of making fast money is evolving into a deep-rooted market, new consumer brands still have the opportunity to rise rapidly, and the value of Token has broad prospects in the future. In order to thrive, Future Enterprises must have insights into the new needs of customers, nurture new capabilities of enterprises, build new IT architectures, and create a new industry ecosystem.
1、今天很残酷，明天更残酷, 后天很美好，但绝大多数人都死在明天晚上，看不见 后天的太阳。 Jīntiān hěn cánkù, míngtiān gèng cánkù, hòutiān hěn měihǎo, dàn jué dàduōshù rén dōu sǐ zài míngtiān wǎnshàng, kàn bú jiàn hòutiān de tàiyáng. Today is cruel and tomorrow is crueler. The day after tomorrow will be wonderful; however, most people die on tomorrow night and won’t see the sunshine the day after tomorrow. — From Ma Yun, CEO of Alibaba, China’s largest e-commerce company.
2、品牌＝品质＋品位＋品行 Pǐnpái=pǐnzhì＋pǐnwèi＋pǐnxíng Quality, taste and virtue make a brand. — From Niú Gēnshēng, CEO of MENGNIU, one of China’s leading dairy products companies.
3、要避开竞争也不可能，市场肯定有竞争，避免竞争，这不是找死么？ Yào bìkāi jìngzhēng yě bùkěnéng, shìchǎng kěndìng yǒu jìngzhēng, bìmiǎn jìngzhēng, zhè búshì zhǎosǐ me? It is impossible to avoid competition for it’s everywhere in the market; aren’t you seeking death if you really try to avoid competition. —From Zong Qinghou, CEO of Wa haha, one of the four largest beverage producers in the world.
4、就像日常生活中人们对水和电的依赖一样，我们要做成互联网上的水和电。 Jiù xiàng rìcháng shēnghuó zhōng rénmen duì shuǐ hé diàn de yīlài yí yàng, wǒmen yào zuò chéng hùliánwǎng shàng de shuǐ hé diàn. Like how people rely on water and electricity in their daily life, we are going to make our products like the water and electricity of the internet world. —From Ma Huateng, CEO of Tencent (QQ.com), the most powerful Internet company in China.
5、海尔的每年都是一个马拉松长跑，每天都是一个百米冲刺。 Hǎi’ěr de měinián dōu shì yí gè mǎlāsōng chángpǎo, měitiān dōu shì yí gè bǎimǐ chōngcì. Every year is a marathon race for Hai’er, and everyday is a 100-meter dash. —From Zhang Ruimin, CEO of Hai’er Group, the fourth largest appliance manufacturer in the world.
6、营销是没有专家的，唯一的专家是消费者，就是你只要能打动消费者就行了。 Yíngxiāo shì méiyǒu zhuānjiā de, wéiyī de zhuānjiā shì xiāofèizhě, jiùshì nǐ zhǐyào néng dǎdòng xiāofèizhě jiù xíng le. There are no experts in marketing and the only expert is the customer. So it is crucial to impress the customers. —From Shi Yuzhu, CEO of Giant Interactive Group, the first online game company listed on New York Stock Exchange (NYSE).
7、要有理想，但是不要理想化！ Yàoyǒu lǐxiǎng, dànshì búyào lǐxiǎnghuà! To have a dream is important, but don’t be too idealistic! —From Liu Chuanzhi, CEO of Lenovo, the fourth largest PC maker in the world.
8、因为改变不了过去，你只能去创造未来。 Yīnwèi gǎibiàn bù liǎo guòqù, nǐ zhǐnéng qù chuàngzào wèilái. You can not change the past, so you have to create the future. —From Li Dongsheng, CEO of TCL Group, the largest electronic product manufacturer in China.
9、企业里能发现问题，提出问题的人很多，那些能够创造机会和得到机会的是能 够发现问题并解决问题的人。 Qǐyè lǐ néng fāxiàn wèntí, tíchū wèntí de rén hěn duō, nàxiē nénggòu chuàngzào jīhuì hé dédào jīhuì de shì nénggòu fāxiàn wèntí bìng jiějué wèntí de rén. Many people in an enterprise can discover problems; however, those who can discover and solve those problems create and get opportunities. —From Tang Jun, Former President of Shanda ENTERTAINMENT, a NASDAQ listed Media Company.
10、只要有信心，人永远不会挫败。 Zhǐyào yǒu xìnxīn, rén yǒngyuǎn bú huì cuòbài. As long as you have confidence in your heart, you will never be defeated. —From Li Ning, CEO of Li Ning Sports Group, a leading sports brand in China.
生词 (shēngcí) Vocabulary
残酷 (cánkù) adj cruel
“残 (cán)” means cruel and “酷 (kù)” means ruthless.
Example:
现实社会总是很残酷。 Xiànshí shèhuì zǒngshì hěn cánkù. The real world is always cruel.
美好 (měi hǎo) adj fine/ beautiful/ bright
“美 (měi)” means beautiful and “好 (hǎo)” means fine or good.
Example:
更美好的未来呈现在我们面前。 Gèng měihǎo de wèilái chéngxiàn zài wǒmen miànqián. A brighter future lies ahead.
理想化 (lǐxiǎnghuà) v to idealize
“理 (lǐ)” refers natural science or logic. “想 (xiǎng)” means to think. “化 (huà)” is a suffix which means to transform.
Example:
A: 我真希望社会中没有竞争，没有压力。 Wǒ zhēn xīwàng shèhuì zhōng méiyǒu jìngzhēng, méiyǒu yālì. I wish there is no competition or stress in the society.
B: 哎，那样的事情只能存在于理想化的世界中。 Ài, nàyàng de shìqíng zhǐnéng cúnzàiyú líxiǎnghuà de shìjiè zhōng. That exists only in an idealistic world.
挫败 (cuòbài) v to defeat
“挫 (cuò)” means repress or oppress. “败 (bài)” means to fail.
Example:
他的努力被反动势力挫败。 Tā de nǔlì bèi fǎndòng shìlì cuòbài. His efforts were defeated by the reactionary force.
BY DAN SCALCO, FOUNDER AND DIRECTOR OF GROWTH, DIGITALUX@DANSCALCO
As an entrepreneur who is always seeking to grow and evolve professionally, I try to collect insightful quotes I can use to help manage my business.
Over the years, I’ve collected hundreds of passages. Yet one type always seems to stand out to me–Chinese proverbs. I find myself fascinated with their ability to eloquently and clearly communicate complex ideas such as entrepreneurship.
In order to learn from these ancient words, it’s important to derive personal significance from them so that you can apply their meaning to your life accordingly. Below are my six favorite Chinese proverbs, along with explanations as to how their meanings can help you grow your business.
1) “A bad workman blames his tools.”
Everyone makes mistakes, but the way you handle those mistakes is what determines whether you will be a successful entrepreneur. Instead of making excuses or blaming someone else when you fail, take ownership of it and learn from the experience.
2) “If you want one year of prosperity, grow grain. If you want 10 years of prosperity, grow trees. If you want 100 years of prosperity, grow people.”
When building a business, many entrepreneurs focus too much on the money. While it is important to be cash-conscious, do not let it cloud your judgment. Sustainable businesses are built by investing time and energy into creating a community–both internally, with your employees, and externally, with your customers.
3) “A single conversation with a wise man is better than 10 years of study.”
One of the most important things an entrepreneur can do is reach out to and learn from those who are more experienced than he or she is. These people are often referred to as “mentors.” A mentor can help you overcome certain business-related challenges, home in on your marketing strategy, and better understand your target demographic.
4) “Cheap things are not good; good things are not cheap.”
New business owners tend to be very apprehensive about spending money on their business. Thus they skimp and go for what’s cheap rather than what’s good. This can lead to a lot of headaches when those cheap things break. Do yourself a favor and look at business expenses as investments. Try to make investments in high-quality things that will help grow your business.
5) “Teachers open the door. You enter by yourself.”
You can have the highest level of degree from the most prestigious university, but if you aren’t practically applying that knowledge to help your business grow, does it even matter? For as much time you spend learning, it’s equally important to exercise that knowledge.
6) “The emperor is rich, but he cannot buy one extra year.”
The biggest excuse I hear when people tell me they can’t start their own business is that they “just don’t have the money.” Guess what? Neither did Bill Gates, Larry Page and Sergey Brin, or Mark Cuban. They all started from average, middle-class backgrounds. What they used to their advantage to build their billion-dollar companies was time, a resource that we all have.
Jika anda tidak merokok, anda mungkin berpikir bahwa anda tidak terlibat ketika berkenaan dengan kanker paru-paru yaitu, kanker pembunuh nomor satu di AS. Sayangnya, itu adalah sebuah mitos yang mematikan, karena penelitian menunjukkan bahwa jumlah orang yang bukan perokok dengan kanker paru-paru sedang terus meningkat.
JENIS KANKER PARU-PARU YANG BERBEDA
Karena lebih sedikit orang memilih untuk merokok, penyebab lain yang menyebabkan kanker paru-paru mulai menjadi lebih umum. Faktanya, hingga 20 persen orang yang meninggal karena kanker paru-paru adalah orang yang bukan perokok. Dan para peneliti telah menemukan bahwa kanker paru-paru pada orang yang bukan perokok adalah penyakit yang berbeda sama sekali. Jadi dokter sekarang menekankan betapa berbahayanya faktor-faktor lingkungan lainnya.
“Secara pasti ada profil molekuler yang jauh berbeda dalam diri seseorang yang perokok dengan yang bukan perokok,” kata Robert M. Jotte, MD, PhD, di Presbyterian / St. Pusat Medis Luke. Itu berarti sel-sel kanker berkembang secara berbeda, yang dapat mempengaruhi pengobatan dan kemungkinan komplikasi kesehatan lainnya.
Sebagai contoh, orang yang bukan perokok dengan kanker paru-paru mungkin terlihat lebih kecil untuk memiliki chronic obstructive pulmonary disease (COPD) (penyakit paru obstruktif kronis)dan penyakit jantung daripada rekan-rekan mereka yang merokok. Ada juga beberapa saran bahwa kanker-kanker dalam diri seseorang yang bukan perokok mungkin memiliki lebih banyak pilihan pengobatan, yang berarti mereka bisa hidup lebih lama. Perbedaan besar lainnya adalah bahwa wanita tampaknya lebih mungkin terkena kanker paru-paru jika mereka tidak pernah sama sekali merokok, dibandingkan dengan pria.
“Mengapa lebih banyak wanita yang mengembangkan mutasi gen khusus itu tidak sepenuhnya dipahami,” Dr. Jotte berkata. “Ada banyak teori, tetapi penyebab sebenarnya masih sedang dipelajari.
APA PENYEBAB KANKER DALAM DIRI SESEORANG YANG BUKAN PEROKOK?
Merokok masih menjadi penerus penyebab utama kanker paru-paru, tetapi faktor-faktor risiko lainnya berikut ini : dapat menyebabkan kanker paru-paru dalam diri orang yang tidak merokok Riwayat keluarga Perokok pasif Diagnosis kanker sebelumnya Polusi udara atau bahaya-bahaya lingkungan lainnya
BAGAIMANAKAH ANDA BISA MENGURANGI RESIKO KANKER PARU-PARU ANDA?
Kanker paru-paru sangat tak terduga dalam diri seorang yang bukan perokok sehingga itu biasanya ditemukan pada tahap selanjutnya, yang juga berarti sering lebih sulit untuk diobati. Seperti semua masalah kesehatan, satu ons pencegahan bernilai satu pon penyembuhan, jadi coba petunjuk-petunjuk itu untuk mengurangi kemungkinan anda mengidap kanker paru-paru:
RADON* MENGUJI RUMAH ANDA Radon adalah sebuah karsinogen yang terjadi secara alami yang dapat mengintai di ruang bawah tanah atau ruang merangkap. Anda dapat membeli kotak uji radon di toko perangkat keras lokal anda untuk memastikan rumah anda aman. Tapi Jotte menambahkan bahwa sementara pengujian radon dianjurkan, jangan stres tentang hal itu. “Seseorang harus menghabiskan proporsi jam yang cukup tinggi di hari di lingkungan tertutup untuk benar-benar mendapatkan tingkat paparan yang terlibat dalam kanker paru-paru,” tambahnya.
HINDARI ASAP ROKOK (MEROKOK SECARA PASIF) Jika seseorang yang dicintai adalah seorang perokok, dorong mereka untuk berhenti. Lima langkah untuk berhenti merokok ini dapat meningkatkan peluang-peluang mereka untuk menghentikan kebiasaan itu hingga 60 persen. Tidak hanya akan bermanfaat bagi kesehatan mereka, tetapi itu juga membantu anda menghindari kanker paru-paru.
HINDARI KARSINOGEN Anda mungkin terpapar pada bau asbes dan polutan-polutan keras lainnya karena bagian dari pekerjaan anda. Pastikan atasan anda mengikuti pedoman-pedoman OSHA dan selalu mengenakan perlengkapan yang sesuai, seperti masker wajah, untuk membatasi penghirupan
MEMERIKSA APAKAH SKRINING ADALAH TEPAT BAGI ANDA Jika Anda benar-benar khawatir dengan paru-paru anda, Anda mungkin ingin melihat skrining terhadap kanker paru-paru. Tapi sebagian besar perusahaan-perusahaan asuransi meliputi tes-tes itu hanya untuk orang-orang yang memiliki riwayat merokok. Tanyakan kepada dokter anda jika itu masuk akal untuk anda.
TETAPLAH TERHUBUNG PADA DOKTER ANDA Jika seseorang di keluarga anda telah menderita kanker paru-paru, bicaralah, sehingga dokter anda bisa lebih waspada dalam menemukan tanda-tanda awal kanker paru-paru dalam diri anda. “Bahkan jika anggota keluarga dengan kanker paru-paru itu perokok, saya pikir hal itu perlu menjadi perhatian anda,” kata Jotte.
Dan pastikanlah untuk membahas setiap gejala-gejala yang aneh dan yang tidak begitu aneh. “suatu batuk yang terus-menerus tidak hilang bukanlah sesuatu yang seharusnya diabaikan,” kata Jotte. “Banyak gejala-gejala itu yang bisa menunjukkan suatu masalah yang mendasari seperti kanker paru-paru yang sebenarnya adalah gejala-gejala sangat umum yang kita semua dapat kan pada beberapa titik dalam masa hidup kita,” katanya. “Mengalami batuk, mengalami sedikit sakit di dada dan terasa nafas sedikit pendek adalah masalah-masalah umum, tetapi hal-hal itu juga gejala kanker paru-paru.”
Walaupun setiap bentuk kanker adalah menyeramkan, anda tidak perlu panik. Jotte mengatakan pentingnya untuk mengingat bahwa walaupun jumlah pada orang yang bukan perokok mengidap kanker paru-paru sedang melonjak, kebanyakan orang sehat yang bukan perokok tidak mengidap kanker paru-paru.
*Radon adalah suatu unsur kimia dalam tabel periodik yang memiliki lambang Rn dan nomor atom 86. Radon juga termasuk dalam kelompok gas mulia dan beradioaktif. Radon terbentuk dari penguraian radium. Radon juga gas yang paling berat dan berbahaya bagi kesehatan. (Sumber : Wikipedia)
Asuransi untuk risiko serangan dan peretasan di dunia maya Usaha asuransi adalah salah satu bidang yang paling banyak jenisnya. Salah satu contohnya adalah risiko dari dan di dunia maya (cyber risk). Peretasan dan serangan di dunia maya semakin lama semakin berat dan sering. Contoh: Tahun lalu, SingHealth, grup lembaga perawatan kesehatan yang terbesar di Singapura, mengalami pencurian data sekitar 1,5 juta orang data pasiennya, yang mencakup rincian obat-obat yang diberikan kepada sekitar 160.000 orang. Tahun 2018, Chubb, sebuah perusahaan asuransi, meneliti 300 buah perusahaan UKM tahun lalu. Temuannya: tiga di antara lima UKM telah mengalami peretasan dan sehingga menimbulkan kekacauan (disrupsi) dan kebocoran data selama 12 bulan. Tetapi, mayoritas orang yang disurvei percaya bahwa perusahaan-perusahaan besar mengalami lebih banyak risiko serangan cyber daripada yang kecil.
Nah, kejadian-kejadian itu menunjukkan peluang usaha baru untuk asuransi data perusahaan maupun pribadi. Di Singapura saja, asuransi terhadap kejahatan di dunia cyber masih pada tahap awal. Orang Indonesia yang terkenal kreatif pasti dapat memanfaatkannya!!!
CDS, Asuransi Risiko Investasi di pasar modal Salah satu contohnya dikenal sebagai credit default swap (CDS), yaitu salah satu bentuk “asuransi” yang paling umum terhadap gagal bayar (default) atau peristiwa kredit lainnya sehubungan dengan obligasi pemerintah maupun swasta. CDS adalah satu produk derivatif (turunan) atau kontrak keuangan yang memungkinkan seorang investor yang memegang suatu obligasi untuk”menukar” risiko kreditnya dengan risiko kredit investor lain.
Misalnya, tariff CDS obligasi RI yang bertenor 5 tahun saat ini adalah 110,595 point (atau 1,10595%) per tahun. Sebagai perbandingan, CDS untuk obligasi pemerintah China adalah 51,875 point (0,52875%) per tahun dan Yunani 405,52 point (4,0552%) per tahun. Jadi, pemegang (investor A) obligasi pemerintah RI yang khawatir pemerintah RI akan mengalami default bisa bisa mencari investor lain (Investor B) untuk menjamin bahwa Investor B akan mengganti uang Investor A sebesar nilai obligasi jika terjadi default tersebut, dengan syarat Investor A membayar “asuransi” sebesar 1,10595% per tahun. Nah, Investor B bertindak sebagai “perusahaan asuransi” itu. Kontrak CDS biasanya berlaku sampai tanggal jatuh tempo obligasi yang bersangkutan. Kontraknya biasa menyebutkan bahwa Investor B akan juga membayar bunga-bunga yang gagal bayar untuk obligasi tersebut selama masa antara tanggal kontrak CDS dan tanggal jatuh tempo obligasi.
Catatan: Risiko tetap ada yaitu default dan/atau pailitnya Investor B (sebagai penjual CDS, atau “perusahaan asuransi”). Misalnya, Lehman Brothers dan Bear Stearns di AS pada tahun 2008 sehingga menimbulkan krisis kredit dan juga Resesi Besar.
Sebagian besar penerbit obligasi yang dijamin dengan hipotek perumahan, biasanya disebut sebagai mortgage-backed securities (MBS; Sekuritas Beragunan Hipotek), juga pailit. Tetapi, mayoritas penerbit obligasi dan surat utang yang lain , misalnya RI, tetap ada. Jadi, CDS mengurangi risiko kredit, tidak menghilangkannya. Kontrak CDS diperdagangkan secara bebas, alias over-the-counter, sehingga tidak terlacak oleh regulator.
Di AS, Dinas Pengendali Mata Uang (OCC) memberikan ijin, mengatur dan mengawasi semua bank nasional dan lembaga simpan-pinjam di AS, yang juga mencakup cabang-cabang dan perwakilan bank asing yang diberi ijin oleh pemerintah Federal AS. OCC adalah salah satu biro independen yang didirikan berdasarkan UU Mata Uang Nasional AS tahun 1863 dan berada di bawah Departemen Keuangan AS. OCC menerbitkan laporan kuartalan tentang kontrak-kontrak derivatif kredit. Pada Juni 2018, OCC memperkirakan bahwa pasar total untuk kontrak-kontrak itu bernilai USD 4,2 triliun (sekitar 4 x GDP Indonesia), dengan CDS menguasai USD 3,68 triliun.
Jadi, jika anda punya dana yang besar, anda bisa menjadi Investor CDS.
