BEIJING // Standing behind a vast round hotplate, Sun Lanying does a brisk afternoon trade selling pancakes mixed with vegetables.
Her mobile stall, sitting on the opposite side of a main road from the ministry of foreign affairs, is perfectly placed to catch people as they come out of the Chaoyangmen metro station in eastern Beijing.
But while the customers are numerous enough, they are having to pay more than they used to for the tasty pancakes.
In 2009 they cost 3 yuan (Dh1.7) each. Last year they went up to 3.5 yuan before increasing in price again in 2011 to 4 yuan.
"Everything has gone up; from the seasoning to the flour, everything," said Ms Sun, 51. "I have to increase the prices."
Yin Ge, 30, an information technology salesman, still dines out regularly, but admits that high inflation is cutting the amount he can save.
"Gasoline prices and housing costs - we are very concerned about that," said Mr Yin, a resident of Beijing.
The anxiety about price hikes in China is mirrored at the highest levels of the Communist Party.
Periods of social turbulence in China's recent history, including the staging of major demonstrations, have often been linked to high inflation.
Prices have yet to reach the levels of 1989, when they were a factor behind the Tiananmen Square protests that ended with a violent government crackdown.
In April, inflation was recorded at 5.3 per cent, and food prices have been increasing at double this rate.
Even the state-run Xinhua news agency recently described China's inflation as being "stubbornly high". Measures to curb price rises, including multiple interest rate rises and restrictions on bank lending, have failed to have significant effects.
Ding Xueliang, a political analyst and professor at Hong Kong University of Science and Technology, said: "This time the top leadership is deeply concerned about the possible consequences, especially when the Arab Spring effect is still highlighted.
"If you have high inflation, the benefits of the past 15 years' economic benefits to the ordinary citizens could be eroded quickly.
"When the CCP [Communist Party of China] leadership looks at the possible consequences of high inflation, they not only remember 1989, they also remember the late 1940s."
China suffered from hyperinflation in the second half of the 1940s, and by the end of that decade the nationalist Kuomintang party that ruled mainland China was forced to flee to Taiwan after being ousted by the communist forces of Mao Zedong.
"The CCP leaders … they see high inflation as the top political policy challenge, not just an economic one," Mr Ding said.
China's leaders have publicly acknowledged how much of an issue high inflation could become. Earlier this year, Wen Jiabao, the premier, warned that high inflation "affects people's livelihoods and may affect social stability".
"I know the impact that prices can cause a country and am deeply aware of its extreme importance," Mr Wen said.
Recent reports from analysts such as Shanghai Securities have indicated that China's inflationary pressures are set to continue, and Chinese stocks recently dropped amid worries the pressures could increase.
Inflation, while not yet at "critical" levels, had nonetheless become "an issue of concern" within the communist hierarchy because they are "very sensitive to the potential for unrest", said Joseph Cheng, a professor of political science at City University of Hong Kong.
"The leaders are worried about a jasmine revolution so they will do a lot to contain inflation," he said, referring to the name given to the uprising that ousted the Tunisian president Zine el Abidine Ben Ali in January.
"Food prices are a serious concern because people spend almost 60 or 70 per cent of their income on food [among] the low-income bracket. Sometimes vegetables, eggs and meat can go up 40 to 50 per cent - it's not just four or five per cent," Mr Cheng said.
Attempts in China to organise protests inspired by those that have swept the Middle East and North Africa were snuffed out by the authorities. Large numbers of security forces were deployed in Beijing and Shanghai when gatherings were scheduled there in February.
Yet the government remains acutely aware of the risks of social discontent and mass protests like those in the Middle East this year. This is one reason why the internet is tightly controlled and some social networking websites, such as Facebook, have been banned.
Mr Ding said there have already been signs of anger over inflation emerging online. He said that recent panic buying of discounted items caused "big, big disorder" in major cities and could escalate into something more serious.
"When you see this happen more and more often in the major and medium-sized cities, the next step would be street protests," he said.
"When it comes to this, some violent conflict could happen."
dbardsley@thenational.ae
UAE tour of the Netherlands
UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures and results:
Monday, UAE won by three wickets
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match
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The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
THE BIO:
Favourite holiday destination: Thailand. I go every year and I’m obsessed with the fitness camps there.
Favourite book: Born to Run by Christopher McDougall. It’s an amazing story about barefoot running.
Favourite film: A League of their Own. I used to love watching it in my granny’s house when I was seven.
Personal motto: Believe it and you can achieve it.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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%3Cp%3E%3Cstrong%3ECreators%3A%20%3C%2Fstrong%3EAri%20Katcher%2C%20Ryan%20Welch%2C%20Ramy%20Youssef%0D%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ERamy%20Youssef%2C%20Amr%20Waked%2C%20Mohammed%20Amer%0D%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
UAE central contracts
Full time contracts
Rohan Mustafa, Ahmed Raza, Mohammed Usman, Chirag Suri, Mohammed Boota, Sultan Ahmed, Zahoor Khan, Junaid Siddique, Waheed Ahmed, Zawar Farid
Part time contracts
Aryan Lakra, Ansh Tandon, Karthik Meiyappan, Rahul Bhatia, Alishan Sharafu, CP Rizwaan, Basil Hameed, Matiullah, Fahad Nawaz, Sanchit Sharma
Killing of Qassem Suleimani
SERIE A FIXTURES
Friday Sassuolo v Benevento (Kick-off 11.45pm)
Saturday Crotone v Spezia (6pm), Torino v Udinese (9pm), Lazio v Verona (11.45pm)
Sunday Cagliari v Inter Milan (3.30pm), Atalanta v Fiorentina (6pm), Napoli v Sampdoria (6pm), Bologna v Roma (6pm), Genoa v Juventus (9pm), AC Milan v Parma (11.45pm)
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
War
Director: Siddharth Anand
Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor
Rating: Two out of five stars
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
