Bankrupt Yellow Trucking Firm Got $700 Million Covid “Rescue Loan” from Taxpayers

(p. B2) Trucking company Yellow is preparing to file for bankruptcy, according to people familiar with the matter, heightening the threat that one of the nation’s largest freight carriers will shut down as customers abandon it amid a cash crunch and union negotiations.

. . .

A bankruptcy filing would again spotlight the $700 million Covid-19 rescue loan that Yellow received from U.S. taxpayers in 2020. A congressional probe later concluded that the Treasury Department erred in giving the loan on national-security grounds when Yellow didn’t meet the standards for that designation.

For the full story, see:

Soma Biswas, Paul Page and Alexander Gladstone. “Trucker Yellow Prepares To File for Bankruptcy.” The Wall Street Journal (Thursday, July 27, 2023): B2.

(Note: ellipsis added.)

(Note: the online version of the story has the date July 26, 2023, and has the title “Trucker Yellow Prepares to File for Bankruptcy as Customers Flee.”)

In Xi’s Communist China: “Our Speech Is Not Free”

(p. B1) Many innocent lives were lost to tragic events in China in the past month. So far we haven’t learned a single name of any of them from China’s government or its official media. Nor have we seen news interviews of family members talking about their loved ones.

Those victims would include a coach and 10 members of a middle-school girls volleyball team who were killed in late July when the roof caved in on a gymnasium near the Siberian border. Despite an outpouring of public grief and anger around the country, the government never released their names. Social media posts sharing their names and tributes to their lives were censored.

Then there were the people — probably dozens, possibly hundreds — who died in severe flooding in northern and northeastern China in recent weeks. It was the most serious flooding in the country in decades. Posts about the casualties, and the hardships people endured, were censored.

. . .

(p. B4) “Xi Jinping has made control of history one of his signature policies — because he sees counter-history as an existential threat,” Ian Johnson, an author who has covered China for decades, wrote in his new book, “Sparks: China’s Underground Historians and their Battle for the Future.”

Mr. Xi has turned the screws extra tight since the Covid pandemic. In April 2020, relatives of Wuhan residents who died were followed by minders when they picked up the ashes of their loved ones.

The government ignored a citizen demand to make Feb. 6 a nationwide day of mourning to mark the death of Dr. Li Wenliang, the whistle-blower who had warned the public of the coronavirus.

“We have always known that our speech is not free, our voice is not free. Yet we do not realize until today that even sorrow and mourning do not belong to us,” Ms. Zhang, the independent journalist, wrote in an article that was widely circulated on WeChat and other social media platforms before it was censored.

A recent video of the bereaved father of a volleyball player killed in the gymnasium collapse in Qiqihar highlighted the cruel reality faced by family members in public tragedies: Their grief, in the eyes of the government, makes them potential threats to social stability.

In the six-minute video, the father remained preternaturally composed as he tried to reason with the police, doctors and government officials at a hospital. He and other family members wanted to be allowed to identify the bodies of their daughters.

The father said he understood why the police were at the hospital. “We didn’t cause any troubles,” he said. He said he understood why no officials bothered to talk to them. “That’s fine,” he said.

Many people said online and in interviews that they cried watching the video because they recognized his “heart-wrenching restraint” and knew why he behaved that way.

“What happens if he didn’t hold back his anger?” asked an author in an article posted on social media. “As a father who has suffered such immense pain, why did he have to reason with such restraint and humility?”

As usual, the censorship machine went into high gear. Social media posts containing names of the victims and celebrating their lives and friendships were deleted. So were photos and videos showing the entrance of their school, where the public sent numerous flower bouquets, yogurt, milk tea and canned peaches, which is a comfort food for children in northeastern China.

For the full story, see:

Li Yuan. “When Tragedy Strikes in China, The Government Represses Grief.” The New York Times (Monday, August 3, 2023): B1 & B4.

(Note: ellipsis added.)

(Note: the online version of the story also has the date Aug. 14, 2023, and has the title “When Tragedy Strikes in China, the Government Cracks Down on Grief.”)

Chinese Communists Detain Entrepreneur Who Exhorted Staff to “Go Forward Boldly”

(p. B1) In mid-January [2023], star Chinese investment banker Fan Bao, architect of the deals that created some of China’s most dominant technology companies, appeared at his bank’s annual party in Beijing.  . . .  He exhorted the hundreds of staffers in attendance to “Go Forward Boldly.”

A few weeks later, he disappeared.

For the past month, the 52-year-old banker—who set out to build the JPMorgan of China and successfully straddled the divide between China and the West—has been held incommunicado in a detention system run by the Communist Party’s anticorruption agency.

. . .

(p. B6) Privately, close associates of Mr. Bao have been dismayed by his detention. China Renaissance Holdings Ltd., the boutique investment bank he founded and ran, is a relatively small firm, making it unusual that it would draw this manner of government scrutiny. Colleagues, business partners, friends and acquaintances of Mr. Bao are worried about his safety and are hoping he will soon resurface publicly. “I feel utterly disillusioned,” said a person close to Mr. Bao.

The jolt to business people’s confidence also comes as anxiety over China’s direction, its curtailing of people’s rights, and the way it managed the Covid-19 pandemic is leading more middle-class and wealthy Chinese citizens to relocate to other countries. Global investors have been rethinking their exposure to the world’s second-largest economy following a selloff over the past two years that was largely caused by Beijing’s regulatory crackdowns and policy decisions.

. . .

Some Chinese entrepreneurs who previously went missing have reappeared quickly. Guo Guangchang, the billionaire chairman of Shanghai-based conglomerate Fosun Group, emerged days after a mysterious detention by authorities in late 2015. He continues to run Fosun and was never charged with any wrongdoing.

Xiao Jianhua, a Chinese financier who ran a conglomerate called the Tomorrow Group, was taken from Hong Kong in 2017 and didn’t reappear for five years. He turned up in a Shanghai court last year to face corruption charges and was sentenced to 13 years in prison.

. . .

Mr. Bao believed China was on the cusp of a new-economy revolution and connected early on with young entrepreneurs who were trying to get their internet-technology startups off the ground.

. . .

Mr. Bao tried to adapt to the new environment, shifting his attention to pursuing deals in industries like semiconductors that remained in Beijing’s good graces.

. . .

Mr. Bao’s last post on Chinese social media WeChat was on Jan. 9 [2023], a few days before the China Renaissance party. He congratulated Fenbi Ltd., a vocational training provider and a portfolio company in his firm’s fund, on its Hong Kong listing. Under his personal status, Mr. Bao had written: “Dream as if u’ll live forever, live as if u’ll die today.”

For the full story, see:

Jing Yang and Rebecca Feng. “China’s M&A Star Vanishing Spurs Alarm.” The Wall Street Journal (Monday, March 20, 2023): B1 & B6.

(Note: ellipses, and bracketed years, added.)

(Note: the online version of the story has the date March 18, 2023, was listed with the title “China’s M&A Star Tells Staff to Be Bold—Then He Disappears,” and had the title “China’s M&A Star Told His Employees to Be Bold—Then He Disappeared” at the top of the story.)

Chinese Communists Suspend Release of Record High Youth Unemployment Rate

(p. B1) The Chinese government, facing an expected seventh consecutive monthly increase in youth unemployment, said Tuesday [Aug. 15, 2023] that it had instead suspended release of the information.

The unemployment rate among 16- to 24-year-olds in urban areas hit 21.3 percent, a record, in June and has risen every month this year. It was widely forecast by economists to have climbed further last month.

The decision to scrub a widely watched report could exacerbate the concerns expressed by investors and executives who say ever-tightening government control of information is making it harder to do business in China.

Fu Linghui, a spokesman of the National Bureau of Statistics, said at a news briefing that the government would stop making public employment information “for youth and other age groups.” He said the surveys that government researchers use to collect the data “need to be further improved and optimized.”

China’s youth unemployment rate has doubled in the last four years, a period of economic volatility induced by the “zero Covid” measures imposed by Beijing that left companies wary of hiring, interrupted education for many students, and made it hard to get the internships that had often led to job offers.

The announcement drew more than 140 million views on the Chinese social media site Weibo within a few hours. Many people (p. B3) commenting online, some turning to sarcasm, said they believed the government suspended the report to try to hide negative information. Others said they believed the public had the right to be informed.

. . .

Young people in China are facing a big gap between labor demand and supply. According to official data, 11.6 million students were expected to graduate college or university this year — the most ever and nearly one million more than last year. Future classes are expected to be even larger, while economic growth had started to slow even before the pandemic.

. . .

Even becoming an entry-level civil servant working for the government is harder these days. Last year, a record 2.6 million people applied to take the national civil service exam to compete for only 37,100 entry-level positions.

Xi Jinping, the country’s top leader, has called for young people to go to remote areas to find work — to “eat bitterness,” a Chinese expression that refers to enduring hardship.

For the full story, see:

Claire Fu. “China Scraps Jobs Report On the Young.” The New York Times (Wednsday, August 16 2023): B1 & B3.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the review has the date Aug. 15, 2023, and has the title “China Suspends Report on Youth Unemployment, Which Was at a Record High.”)

“Proud Symbol of Britain’s Welfare State” in “Deepest Crisis of Its History”

(p. A1) As it turns 75 this month, the N.H.S., a proud symbol of Britain’s welfare state, is in the deepest crisis of its history: flooded by aging, enfeebled patients; starved of investment in equipment and facilities; and understaffed by doctors and nurses, many of whom are so burned out that they are either (p. A6) joining strikes or leaving for jobs abroad.

Interviews over three months with doctors, nurses, patients, hospital administrators and medical analysts depict a system so profoundly troubled that some experts warn that the health service is at risk of collapse.

. . .

(p. A6) More than 7.4 million people in England are waiting for medical procedures, everything from hip replacements to cancer surgery. That is up from 4.1 million before the coronavirus pandemic began in 2020.

Mortality data, exacerbated by long wait times, paints a bleak picture. In 2022, the number of excess deaths rose to one of the highest levels in the last 50 years, and those numbers have kept rising, even as the pandemic has ebbed.

In the first quarter of 2023, more than half of excess deaths — that is, deaths above the five-year average mortality rate, before the pandemic — were caused by something other than Covid-19. Cardiovascular-related fatalities, which can be linked to delays in treatment, were up particularly sharply, according to Stuart McDonald, an expert on mortality data at LCP, a London-based pension and investment advisory firm.

For the full story, see:

Mark Landler. “After 75 Years, Health Service In U.K. Teeters.” The New York Times (Monday, July 17, 2023): A1 & A6-A7.

(Note: ellipsis added.)

(Note: the online version of the story has the date July 16, 2023, and has the title “A National Treasure, Tarnished: Can Britain Fix Its Health Service?”)

Scientists Had Political Motives for Dismissing Wuhan Lab-Based Covid Origin

(p. A17) On March 17, 2020, the journal Nature Medicine published a paper by five scientists, “The Proximal Origin of SARS-CoV-2,” that dismissed “any type of laboratory based scenario” for the origin of the pandemic. It was cited by thousands of news outlets to claim that the virus emerged naturally. But Slack messages and emails subpoenaed and released by the House Oversight Select Subcommittee on the Coronavirus Pandemic suggest that some of the authors didn’t believe their own conclusions. Before, during and even after the publication of their paper, they worried privately that Covid-19 was caused by a laboratory escape, perhaps even of a genetically engineered virus.

. . .

On April 16, a month after publication, Mr. Andersen wrote that “I’m still not fully convinced that no culture was involved” and “we also can’t fully rule out engineering”—i.e., that the virus not only was released from the lab but had been genetically manipulated there. He worried about the Wuhan lab’s research on live SARS-like viruses from bats at low biosafety levels: “it’s definitely concerning work, no question about it.”

So why did they publish a paper denying that laboratory origin was plausible? The answer may lie in their messages. In early February 2020, Mr. Rambaut wrote: “Given the s— show that would happen if anyone serious accused the Chinese of even accidental release, my feeling is we should say that given there is no evidence of a specifically engineered virus, we cannot possibly distinguish between natural evolution and escape so we are content to ascribing it to natural processes.”

Mr. Andersen replied: “I totally agree that that’s a very reasonable conclusion. Although I hate when politics is injected into science—but it’s impossible not to.”

. . .

To adjust the conclusions in a scientific paper for political reasons isn’t part of the scientific process. The world was misled with serious consequences.

For the full commentary, see:

Matt Ridley and Alina Chan. “The Covid Lab-Leak Deception.” The Wall Street Journal (Thursday, July 27, 2023): A17.

(Note: ellipses added.)

(Note: the online version of the commentary has the date July 26, 2023, and has the same title as the print version.)

Unsound Trucking Firm “Blew Through” $700 Million of Federal Covid “Bailout” Loan

(p. A4) The Treasury Department erred in giving a loan to a troubled trucking company as part of a 2020 Covid-19 rescue package and should refrain from similar sector-specific loan programs in the future, according to a new congressional report.

Yellow, a trucking company, received a $700 million loan from the Treasury Department as part of an aid program for private industries included in bipartisan legislation known as the Cares Act enacted early in the pandemic.

But Treasury had to skirt the program’s rules to make the loan, the report said. The agency designated Yellow—then known as YRC Worldwide—as critical to national security even though the company didn’t meet the standard for that designation, the report said.

. . .

In exchange for the loan, Treasury received a roughly 30% stake in the company.

. . .

At the time of the loan the company was rated noninvestment grade by Moody’s Investors Service and was at risk of bankruptcy, according to the report.

. . .

In recent months, Yellow has again suffered from the broader freight slowdown.

. . .

Teamsters President Sean O’Brien said the union is abiding by the terms of its contract with the company.

“After decades of gross mismanagement, Yellow blew through a $700 million bailout from the federal government, and now it wants workers to foot the bill,” O’Brien said in a statement.

For the full story, see:

David Harrison. “Treasury Faulted for Loan to Troubled Trucking Firm.” The Wall Street Journal (Wednesday, June 28, 2023): A4.

(Note: ellipses added.)

(Note: the online version of the story was updated June 27, 2023, and has the title “Treasury Shouldn’t Have Given Pandemic Aid to Trucking Company, Report Finds.”)

Feds Release Covid Origin Report on a Friday Evening–A Time to “Put Out News They Want Buried or Ignored”

(p. A12) The Office of the Director of National Intelligence released a long-awaited declassified report, which included spy agencies’ findings on the so-called lab leak theory, . . .

The 10-page report said scientists at the Wuhan Institute of Virology did conduct research on coronaviruses, in some cases had inadequate safety measures and had genetically engineered coronaviruses.

. . .

After three years of study, some senior U.S. officials have said that the spy agencies are unlikely to come to any satisfactory conclusion, in large measure because China has not cooperated with international inquiries and some officials in Beijing are not interested in digging deeper into the cause of the pandemic.

. . .

The report was released on a Friday evening, traditionally a time when administrations put out news they want buried or ignored. Conservatives had criticized the government for failing to meet a deadline of the beginning of the week, though few congressionally mandated reports are delivered precisely on time.

While Biden administration officials have said they have ordered investigations without favoring one theory over another, Republicans have harshly criticized how the White House and its intelligence agencies have investigated Covid’s origins.

“The lab leak is the only theory supported by science, intelligence and common sense,” John Ratcliffe, who served as the director of national intelligence in the Trump administration, said as the report was released Friday [June 23, 2023], adding: “The Biden administration’s continued obfuscation of Covid origins is a disservice to the intelligence community.”

For the full story, see:

Julian E. Barnes. “Intelligence Agencies Remain Divided Over Theory That Covid Came From Lab.” The New York Times (Saturday, June 24, 2023): A11.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the story has the date June 23, 2023, and has the title “U.S. Intelligence Report Finds No Clear Evidence of Covid Origins in Wuhan Lab.”)

In 2021 Summers and Blanchard Worried That Biden’s Covid Stimulus Would Fuel Inflation

(p. A2) When Congress passed President Biden’s $1.9 trillion American Rescue Plan in early 2021, which included checks to households, enhanced jobless benefits and aid to state and local governments, inflation was around 2% and unemployment, though coming down, still above 6%.

At the time many forecasters thought the stimulus could push demand above the economy’s potential to supply goods and services and unemployment below its long-run natural rate of around 4%. Yet few thought this would meaningfully raise inflation. In previous decades unemployment had remained similarly low without raising price pressures.

A few disagreed, notably former Treasury Secretary Lawrence Summers and Blanchard. Both warned the stimulus was so large it would push the economy dangerously into overheating territory.

For the full commentary, see:

Greg Ip. “CAPITAL ACCOUNT; Why Did Inflation Take Off? Two Top Economists Answer.” The Wall Street Journal (Wednesday, May 24, 2023): A2.

(Note: the online version of the commentary has the date May 23, 2023, and has the title “CAPITAL ACCOUNT; Why Inflation Erupted: Two Top Economists Have the Answer.”)

A 2021 article that documented Summers’s and Blanchard’s worry that Biden’s huge stimulus might fuel inflation is:

Ip, Greg. “Inflation Risk: Little Now, but Some See Danger Ahead.” The Wall Street Journal (Tues., March 2, 2021).

Lockdowns in China Move Atlas to Shrug

(p. A1) By the usual measures, Loretta Liu had it made. She graduated in 2018 from one of China’s top universities, rented an apartment in the glamorous city of Shenzhen, and had been hired as a visual designer at a series of high-flying companies, even as youth unemployment in China was reaching record highs.

Then, last year, she quit. She now works as a groomer at a chain pet store, for one-fifth of her previous salary. She spends hours on her feet, wearing a uniform in place of her once carefully selected outfits.

And she is delighted.

“I was tired of living like that. I didn’t feel like I was getting anything from the work,” Ms. Liu said of her previous job, where she said she had little creative freedom, often worked overtime, and felt her mental and physical health deteriorating. “So I thought, there’s no need anymore.”

Ms. Liu is part of a phenomenon attracting growing attention in China: young people trading high-pressure, prestigious white-collar jobs for manual labor. The scale of the trend is hard to measure, but widely shared social media posts have documented a tech worker becoming a grocery store cashier; an accountant peddling street sausages; a content manager delivering takeout. On Xiaohongshu, an Instagram-like app, the hashtag “My first experience with physical labor” has more than 28 million views.

. . .

Around the world, the coronavirus pandemic spurred people to reassess the value of their work — see the “Great Resignation” in the United States. But in China, the forces fueling the disillusionment of young people are particularly intense. Long working hours and domineering managers are common. The economy is slowing, dimming the prospect of upward mobility for a generation that has known only explosive growth.

And then there were China’s three years of “zero Covid” restrictions, which forced many to endure prolonged lockdowns, layoffs and the realization of how little control their hard work gave them over their futures.

“Emotionally, everyone probably can’t bear it anymore, because during the pandemic we saw many unfair and strange things, like being locked up,” Ms. Liu said.

. . .

When Yolanda Jiang, 24, resigned last summer from her architectural design job in Shenzhen, after being asked to work 30 days straight, she hoped to find another office job. It was only after three months of unsuccessful searching, her savings dwindling, that she took a job as a security guard in a university residential complex.

At first, she was embarrassed to tell her family or friends, but she grew to appreciate the role. Her 12-hour shifts, though long, were leisurely. She got off work on time. The job came with free dormitory housing. Her salary of about $870 a month was even about 20 percent higher than her take-home pay before — a symptom of how the glut of college graduates has started to flatten wages for that group.

But Ms. Jiang said her ultimate goal is still to return to an office, where she hoped to find more intellectual challenges. She had been taking advantage of the slow pace at her security job to study English, which she hoped would help her land her next role, perhaps at a foreign trade company.

“I’m not actually lying flat,” Ms. Jiang said. “I’m treating this as a time to rest, transition, learn, charge my batteries and think about the direction of my life.”

For the full story, see:

Vivian Wang and Zixu Wang. “In China, Young Workers Ditch Prestige Jobs for Manual Gigs.” The New York Times (Tuesday, April 11, 2023): A1 & A11.

(Note: bracketed year added.]

(Note: the online version of the story has the same date as the print version, and has the title “In China, Young People Ditch Prestige Jobs for Manual Labor.”)

The title of this blog entry alludes to Ayn Rand’s novel:

Rand, Ayn. Atlas Shrugged. New York: Random House, 1957.

China Still Seeks to Censor International Journals and Databases on Covid

(p. A1) Early in 2020, on the same day that a frightening new illness officially got the name Covid-19, a team of scientists from the United States and China released critical data showing how quickly the virus was spreading, and who was dying.

The study was cited in health warnings around the world and appeared to be a model of international collaboration in a moment of crisis.

Within days, though, the researchers quietly withdrew the paper, which was replaced online by a message telling scientists not to cite it. A few observers took note of the peculiar move, but the whole episode quickly faded amid the frenzy of the coronavirus pandemic.

What is now clear is that the study was not removed because of faulty research. Instead, it was withdrawn at the direction of Chinese health officials amid a crackdown on science. That effort kicked up a cloud of dust around the dates of early Covid cases, like those reported in the study.

“It was so hard to get any information out of China,” said one of the authors, Ira Longini, of the University of Florida, who described the back story of the removal publicly for the first time in a recent interview. “There was so much covered up, and so much hidden.”

That the Chinese government muzzled scientists, hindered international investigations and censored online discussion of the pandemic is well documented. But Beijing’s stranglehold on information goes far deeper than even many pandemic researchers are aware of. Its censorship campaign has targeted international journals and scientific databases, shaking the foundations of shared scientific knowledge, a New York Times investigation found.

Under pressure from their government, Chinese scientists have withheld data, withdrawn genetic sequences from public databases and altered crucial details in journal submissions. Western journal editors enabled those efforts by agreeing to those edits or withdrawing papers for murky reasons, a review by The Times of over a dozen retracted papers found.

Groups including the World Health Organization have given credence to muddled data and inaccurate timelines.

For the full story, see:

Mara Hvistendahl and Benjamin Mueller. “China Censors Are Thwarting Covid Science.” The New York Times (Monday, April 24, 2023): A1 & A9.

(Note: the online version of the story has the date April 23, 2023, and has the title “Chinese Censorship Is Quietly Rewriting the Covid-19 Story.”)