Beijing Turns Its Back On Migrant Workers

Lin Huiqing, who works for a moving company, stands inside his cousin's room where he now lives temporarily after he was evicted from his room at a migrant village on the outskirts of Beijing.PHOTO: AFP
Lin Huiqing, who works for a moving company, stands inside his cousin's room where he now lives temporarily after he was evicted from his room at a migrant village on the outskirts of Beijing.PHOTO: AFP
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Beijing Turns Its Back On Migrant Workers

Lin Huiqing, who works for a moving company, stands inside his cousin's room where he now lives temporarily after he was evicted from his room at a migrant village on the outskirts of Beijing.PHOTO: AFP
Lin Huiqing, who works for a moving company, stands inside his cousin's room where he now lives temporarily after he was evicted from his room at a migrant village on the outskirts of Beijing.PHOTO: AFP

They fuelled their nation's dramatic economic rise, toiling in jobs far from home, but China's migrant workers are now finding themselves increasingly unwelcome as authorities try to cap the population explosions in key cities.

Mr. Lin Huiqing moved to Beijing to look for work when his children were still in diapers.

For the last 18 years, he has seen his family just once a year, the rest spent doing the hard labor most Beijingers would prefer to avoid.

The 50-year-old is one of hundreds of millions of migrants who moved from the countryside to the cities, a colossal demographic shift that made China's ascent possible.

But last month (Dec 2017), Mr. Lin was evicted from the village where he lived on the capital's outskirts, another victim of a city-wide demolition plan to limit Beijing's population to 23 million by 2020 - a target that could come at the cost of its economy.

"If I go home, I have no way to support my wife and kids," Mr. Lin lamented.

According to the Communist Party mouthpiece People's Daily, the city plans to demolish 40 million sqm of "illegal" structures.

Many are the homes and shops of low-income migrants such as Mr. Lin.

When he first arrived in Beijing, Mr. Lin and his friends pooled their money and took out loans to purchase delivery trucks.

He made a living hauling the wares of small-scale shopkeepers and traders, but the moving business has taken a hit as the city condemns buildings en masse, evicting tens of thousands into the winter cold.

"Our customers are commoners like us," he said. "With their small businesses shut down, there's no stock for us to move. We're basically unemployed now."

Authorities say the campaign, which kicked into high gear after a fire in an illegal structure killed 19 in November, is needed to clean the city up once and for all.

But it is also removing vibrant chunks of Beijing's economy, such as retail and small-scale manufacturing, and throwing into chaos other sectors like delivery, the bedrock of the booming e-commerce trade.

Relegated to the periphery, migrants have kept China's economy humming, handling the difficult, dirty and sometimes dangerous work that the city's permanent residents would not do.

Urban industries such as construction, domestic work and sanitation are almost completely staffed by migrants.

Associate professor of international and comparative labor Eli Friedman at Cornell University said China's biggest cities "simply cannot function without migrant workers".

"If every non-local were to actually be removed from cities like Beijing, Shanghai and Guangzhou, these economic engines for the whole country would completely collapse," he told AFP.

But that is exactly what is happening, said Mr. Li Ning, one of the 60,000 delivery drivers who criss-cross Beijing's streets.

Mr. Li was recently evicted from a village on the city's outskirts, forcing him into an apartment where the rent quadrupled.

Then authorities came for his delivery company's warehouse, forcing staff to sort packages on the sidewalk and sending his income plummeting.

"In Beijing, all the migrants are leaving. We can't make it here anymore," he said, adding that he plans to leave for good during the upcoming spring festival.

Another delivery franchise owner surnamed Wang said she will "give up" if authorities knock down her current warehouse, which they marked in black paint with the character "chai", or demolish in Chinese, in mid-December.

She had just moved in on Dec 1, after she had to close two other delivery hubs, forcing her to cut her workforce from 240 couriers to 60.

"There's no stability. I don't know what I'll be facing tomorrow," she said, tears welling in her eyes.

The demolitions have also hit Beijing's retail sector, decimating once affordable mom and pop shops and pushing consumers online or into high-end malls.

Two years ago, Mr. Ge Guoxiang moved with his wife from their home province of Jiangsu to take over his brother's textiles stall.

It had thrived for over 20 years in Beijing's Tuanjiehu Tianyu market. But three months ago, they received notice that authorities will shutter the market.

Dozens of small-scale community markets have been forced to shut down this year - including the iconic Beijing Zoo market, where hundreds of merchants organized rare street protests against the evictions.

Officials said they have designated certain areas in the neighboring Hebei province where merchants can move their businesses to.

But Mr. Ge is unconvinced.

"It takes years for businesses like ours to build up clientele. Now we have to start over," he said. "Our clients are mostly older people who don't know how to shop online. Where will they go?"



Gold Rises as Dollar Slips, Focus Turns to US Jobs Data

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
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Gold Rises as Dollar Slips, Focus Turns to US Jobs Data

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices rose on Monday, buoyed by a softer dollar as investors braced for a week packed with US economic data that could offer more clues on the US Federal Reserve's monetary policy.

Spot gold rose 1.2% to $5,018.56 per ounce by 9:30 a.m. ET (1430 GMT), extending a 4% rally from Friday.

US gold futures for April delivery also gained 1.3% to $5,042.20 per ounce.

The US dollar fell 0.8% to a more than one-week low, making greenback-priced bullion cheaper for overseas buyers.

"The big mover today (in gold prices) is the US dollar," said Bart Melek, global head of commodity strategy at TD Securities, adding that expectations are growing for weak economic data, particularly on the labor front, Reuters reported.

Investors are closely watching this week's release of US nonfarm payrolls, consumer prices and initial jobless claims for fresh signals on monetary policy, with markets already pricing in at least two rate cuts of 25 basis points in 2026.

US nonfarm payrolls are expected to have risen by 70,000 in January, according to a Reuters poll.

Lower interest rates tend to support gold by reducing the opportunity cost of holding the non-yielding asset.

Meanwhile, China's central bank extended its gold buying spree for a 15th month in January, data from the People's Bank of China showed on Saturday.

"The debasement trade continues, with ongoing geopolitical risks driving people into gold," Melek said, adding that China's purchases have had a psychological impact on the market.

Spot silver climbed 2.9% to $80.22 per ounce after a near 10% gain in the previous session. It hit an all-time high of $121.64 on January 29.

Spot platinum was down 0.2% at $2,092.95 per ounce, while palladium was steady at $1,707.25.

"A slowdown in EV sales hasn't really materialized despite all the policy softening, so I do see that platinum and palladium will possibly slow down," after a bullish run in 2025, WisdomTree commodities strategist Nitesh Shah said.


Al-Rumayyan: PIF Investments in Local Content Exceed $157 Billion

Yasir Al-Rumayyan speaks to the audience in the opening speech of the Public Investment Fund Private Sector Forum (Asharq Al-Awsat)
Yasir Al-Rumayyan speaks to the audience in the opening speech of the Public Investment Fund Private Sector Forum (Asharq Al-Awsat)
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Al-Rumayyan: PIF Investments in Local Content Exceed $157 Billion

Yasir Al-Rumayyan speaks to the audience in the opening speech of the Public Investment Fund Private Sector Forum (Asharq Al-Awsat)
Yasir Al-Rumayyan speaks to the audience in the opening speech of the Public Investment Fund Private Sector Forum (Asharq Al-Awsat)

Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund (PIF), announced that spending by the sovereign fund’s programs, initiatives, and companies on local content reached 591 billion riyals ($157 billion) between 2020 and 2024.

He added that the fund’s private sector platform has created more than 190 investment opportunities worth over 40 billion riyals ($10 billion).

Speaking at the opening of the PIF Private Sector Forum on Monday in Riyadh, Al-Rumayyan said the fund is working closely with the private sector to deepen the impact of previous achievements and build an integrated economic system that drives sustainable growth through a comprehensive investment cycle methodology.

He described the forum as the largest platform of its kind for seizing partnership and collaboration opportunities with the private sector, highlighting the fund’s success in turning discussions into tangible projects.

Since 2023, the forum has attracted 25,000 participants from both public and private sectors and has witnessed the signing of over 140 agreements worth more than 15 billion riyals, he pointed out.

Al-Rumayyan emphasized that the meeting comes at a pivotal stage of the Kingdom’s economy, where competitiveness will reach higher levels, sectors and value chains will mature, and ambitions will be raised.

PIF Private Sector Forum aims to support the fund’s strategic initiative to engage the private sector, showcase commercial opportunities across PIF and its portfolio companies, highlight potential prospects for investors and suppliers, and enhance cooperation to strengthen the local economy.


Pakistan’s Finance Minister to Asharq Al-Awsat: We Draw Inspiration from Saudi Arabia

The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)
The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)
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Pakistan’s Finance Minister to Asharq Al-Awsat: We Draw Inspiration from Saudi Arabia

The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)
The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)

Pakistani Finance Minister Muhammad Aurangzeb discussed the future of his country, which has frequently experienced a boom-and-bust cycle, saying Pakistan has relied on International Monetary Fund (IMF) programs due to the absence of structural reforms.

In an interview with Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Aurangzeb acknowledged that Pakistan has relied on IMF programs 24 times not as a coincidence, but rather as a result of the absence of structural reforms and follow-up.

He stressed the government has decided to "double its efforts" to stay on the reform path, no matter the challenges, affirming that Islamabad not only has a reform roadmap, but also draws inspiration from "Saudi Vision 2030" as a unique model of discipline and turning plans into reality.

Revolution of Numbers

Aurangzeb reviewed the dramatic transformation in macroeconomic indicators. After foreign exchange reserves covered only two weeks of imports, current policies have succeeded in raising them to two and a half months.

He also pointed out to the government's success in curbing inflation, which has fallen from a peak of 38 percent to 10.5 percent, while reducing the fiscal deficit to 5 percent after being around 8 percent.

Aurangzeb commented on the "financial stability" principle put forward by his Saudi counterpart, Mohammed Aljadaan, considering it the cornerstone that enabled Pakistan to regain its lost fiscal space.

He explained that the success in achieving primary surpluses and reducing the deficit was not merely academic figures, but rather transformed into solid "financial buffers" that saved the country.

The minister cited the vast difference in dealing with disasters. While Islamabad had to launch an urgent international appeal for assistance during the 2022 floods, the "fiscal space" and buffers it recently built enabled it to deal with wider climate disasters by relying on its own resources, without having to search "haphazardly" for urgent external aid, proving that macroeconomic stability is the first shield to protect economic sovereignty.

Privatization and Breaking the Stalemate of State-Owned Enterprises

Aurangzeb affirmed that the Pakistani Prime Minister adopts a clear vision that "the private sector is what leads the state."

He revealed the handover of 24 government institutions to the privatization committee, noting that the successful privatization of Pakistan International Airlines in December provided a "momentum" for the privatization of other firms.

Aurangzeb also revealed radical reforms in the tax system to raise it from 10 percent to 12 percent of GDP, with the adoption of a customs tariff system that reduces local protection to make Pakistani industry more competitive globally, in parallel with reducing the size of the federal government.

Partnership with Riyadh

As for the relationship with Saudi Arabia, Aurangzeb outlined the features of a historic transformation, stressing that Pakistan wants to move from "aid and loans" to "trade and investment."

He expressed his great admiration for "Vision 2030," not only as an ambition, but as a model that achieved its targets ahead of schedule.

He revealed a formal Pakistani request to benefit from Saudi "technical knowledge and administrative expertise" in implementing economic transformations, stressing that his country's need for this executive discipline and the Kingdom's ability to manage major transformations is no less important than the need for direct financing, to ensure the building of a resilient economy led by exports, not debts.