Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
NEW YORK/SAN FRANCISCO (Reuters) – Amazon.com Inc (AMZN.O) has bought cameras to take temperatures of workers during the coronavirus pandemic from a firm the United States blacklisted over allegations it helped China detain and monitor the Uighurs and other Muslim minorities, three people familiar with the matter told Reuters.
China’s Zhejiang Dahua Technology Co Ltd (002236.SZ) shipped 1,500 cameras to Amazon this month in a deal valued close to $10 million, one of the people said. At least 500 systems from Dahua – the blacklisted firm – are for Amazon’s use in the United States, another person said.
The Amazon procurement, which has not been previously reported, is legal because the rules control U.S. government contract awards and exports to blacklisted firms, but they do not stop sales to the private sector.
However, the United States “considers that transactions of any nature with listed entities carry a ‘red flag’ and recommends that U.S. companies proceed with caution,” according to the Bureau of Industry and Security’s website. Dahua has disputed the designation.
The deal comes as the U.S. Food and Drug Administration warned of a shortage of temperature-reading devices and said it wouldn’t halt certain pandemic uses of thermal cameras that lack the agency’s regulatory approval. Top U.S.-based maker FLIR Systems Inc (FLIR.O) has faced an up to weeks-long order backlog, forcing it to prioritize products for hospitals and other critical facilities.
Amazon declined to confirm its purchase from Dahua, but said its hardware complied with national, state and local law, and its temperature checks were to “support the health and safety of our employees, who continue to provide a critical service in our communities.”
The company added it was implementing thermal imagers from “multiple” manufacturers, which it declined to name. These vendors include Infrared Cameras Inc, which Reuters previously reported, and FLIR, according to employees at Amazon-owned Whole Foods who saw the deployment. FLIR declined to comment on its customers.
Dahua, one of the biggest surveillance camera manufacturers globally, said it does not discuss customer engagements and it adheres to applicable laws. Dahua is committed “to mitigate the spread of the COVID-19” through technology that detects “abnormal elevated skin temperature — with high accuracy,” it said in a statement.
The U.S. Department of Commerce, which maintains the blacklist, declined comment. The FDA said it would use discretion when enforcing regulations during the public health crisis as long as thermal systems lacking compliance posed no “undue risk” and secondary evaluations confirmed fevers.
Dahua’s thermal cameras have been used in hospitals, airports, train stations, government offices and factories during the pandemic. International Business Machines Corp (IBM.N) placed an order for 100 units, and the automaker Chrysler placed an order for 10, one of the sources said. In addition to selling thermal technology, Dahua makes white-label security cameras resold under dozens of other brands such as Honeywell, according to research and reporting firm IPVM.
Honeywell said some but not all its cameras are manufactured by Dahua, and it holds products to its cybersecurity and compliance standards. IBM and Chrysler’s parent Fiat Chrysler Automobiles NV (FCHA.MI) did not comment.
The Trump Administration added Dahua and seven other tech firms last year to the blacklist for acting against U.S. foreign policy interests, saying they were “implicated” in “China’s campaign of repression, mass arbitrary detention, and high-technology surveillance against Uighurs, Kazakhs, and other members of Muslim minority groups.”
More than one million people have been sent to camps in the Xinjiang region as part of China’s campaign to root out terrorism, the United Nations has estimated.
Dahua has said the U.S. decision lacked “any factual basis.” Beijing has denied mistreatment of minorities in Xinjiang and urged the United States to remove the companies from the list.
A provision of U.S. law, which is scheduled to take effect in August, will also bar the federal government from starting or renewing contracts with a company using “any equipment, system, or service” from firms including Dahua “as a substantial or essential component of any system.”
Amazon’s cloud unit is a major contractor with the U.S. intelligence community, and it has been battling Microsoft Corp (MSFT.O) for an up to $10 billion deal with the Pentagon.
Top industry associations have asked Congress for a year-long delay because they say the law would reduce supplies to the government dramatically, and U.S. Secretary of State Mike Pompeo said last week that policies clarifying the implementation of the law were forthcoming.
FACE DETECTION & PRIVACY
The coronavirus has infected staff from dozens of Amazon warehouses, ignited small protests over allegedly unsafe conditions and prompted unions to demand site closures. Temperature checks help Amazon stay operational, and the cameras – a faster, socially distant alternative to forehead thermometers – can speed up lines to enter its buildings. Amazon said the type of temperature reader it uses varies by building.
To see if someone has a fever, Dahua’s camera compares a person’s radiation to a separate infrared calibration device. It uses face detection technology to track subjects walking by and make sure it is looking for heat in the right place.
An additional recording device keeps snapshots of faces the camera has spotted and their temperatures, according to a demonstration of the technology in San Francisco. Optional facial recognition software can fetch images of the same subject across time to determine, for instance, who a virus patient may have been near in a line for temperature checks.
Amazon said it is not using facial recognition on any of its thermal cameras. Civil liberties groups have warned the software could strip people of privacy and lead to arbitrary apprehensions if relied on by police. U.S. authorities have also worried that equipment makers like Dahua could hide a technical “back door” to Chinese government agents seeking intelligence.
In response to questions about the thermal systems, Amazon said in a statement, “None of this equipment has network connectivity, and no personal identifiable information will be visible, collected, or stored.”
Dahua made the decision to market its technology in the United States before the FDA issued the guidance on thermal cameras in the pandemic. Its supply is attracting many U.S. customers not deterred by the blacklist, according to Evan Steiner, who sells surveillance equipment from a range of manufacturers in California through his firm EnterActive Networks LLC.
“You’re seeing a lot of companies doing everything that they possibly can preemptively to prepare for their workforce coming back,” he said.
Young people starting out in the jobs market face a hit to their prospects that could endure years after the Covid-19-induced downturn has run its course
A generation of angry youth raises the spectre of political instability
Freelance filmmaker Anita Reza Zein had grown used to jam-packed production schedules requiring her to put in long hours and run on little sleep. Until Covid-19 struck.
Today, the talented Indonesian is suddenly free. With five projects on hold and many more potentially cancelled, she now spends her time working on a personal project, doing research for her work and occasionally going for a ride on a bicycle.
“I feel calm and patient although I’m jobless. Maybe because it’s still the third week [of social distancing] and I still have enough savings from my previous work,” said the 26-year-old, who is from Yogyakarta. “But I imagine life will become tougher in the next few months if the situation gets worse.”
Like her, millions of youths are now part of a job market in Southeast Asia that has been ravaged by the coronavirus pandemic. They are the unlucky cohort of 2020 whose fortunes have changed so drastically, so quickly.
Freelance filmmaker Anita Reza Zein now spends most of her time at home as her projects have all been frozen due to the spread of Covid-19. Photo: Anita Reza Zein
Just three months ago, many eager graduates were about to partake in a strong economy and possibly land decent pay cheques.
Today, job offers are being withdrawn and hiring halted, leading to a spike in regional youth unemployment in the short term. In the long term, the effects on the Covid-19 cohort could lead to wider social and political problems.
JOB MARKETS SHUT
The virus’ impact on economies and the job market in the region has been swift and devastating. Borders have been slammed shut, workers ordered to stay at home, and thousands of companies closed every week.
The biggest problem is the lack of certainty about how long this will last – the longer the governments keep their countries on lockdown, the worse the economic impact.
In Indonesia, for example, the virus has caused almost 2.8 million people to lose their jobs, according to the Manpower Ministry and the Workers Social Security Agency. Likewise, in Malaysia, an estimated 2.4 million people are expected to lose their jobs, going by data from the Malaysian Institute of Economic Research (MIER).
is bracing itself for a 5.3 per cent contraction in GDP for the full year, the worst since the Asian financial crisis in 1997.
“We think about seven million jobs have been lost already, and the figure will hit 10 million if the outbreak drags on for two to three more months,” said Kalin Sarasin, council member and head of the Thai Chamber of Commerce.
Lockdown for 34 million people in capital Jakarta as Indonesia fights surge in coronavirus deaths
For young jobseekers, the outbreak of the Covid-19 pandemic could hurt even more, with companies unwilling to open up new jobs for them.
“My clients who were open to fresh graduates previously have realigned searches [for candidates] who have at least one year of experience, as it’s a lot faster for someone with experience to scale up quickly and contribute,” said Joanne Pek, a recruiter at Cornerstone Global Partners’ Singapore office.
For many small and medium-sized enterprises (SMEs) such as Singapore-based restaurant chain The Soup Spoon, saving jobs – rather than recruiting – is the priority.
“We don’t want to let anyone go during this period, so we’re focused on protecting jobs,” said co-founder and director Benedict Leow, who employs some 250 workers.
THE COVID-19 COHORT
The looming economic downturn could have distinct consequences for the Class of 2020 that will outlast the economic downturn itself.
For one thing, the paucity of jobs could result in the Covid-19 cohort becoming a “lost generation” of sorts, said Achim Schmillen, a senior economist at the World Bank Social Protection and Jobs Global Practice.
“Research from around the globe shows that graduating in a recession can have significant and long-lasting impacts that can affect the entire career. In particular, it can lead to large initial earnings losses which only slowly recede over time,” he said.
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Economics professor Jeff Borland of the University of Melbourne said that international studies showed that what happened to people when they first entered the labour market would affect them for the rest of their working lives.
“Many international studies have shown that trying to move into employment during a major economic downturn cuts the probability of employment and future earnings for a decade or more.
“Why this occurs is less well-established. Reasons suggested include being forced to take lower-quality jobs, losing skills and losing psychological well-being,” he said in a piece published on The Conversation website.
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This could create “lasting scarring” on the graduates this year, said labour economist Walter Theseira.
“If their careers start badly, it would affect their earnings for a number of years because they would lack the same experience as peers who started in a more secure position,” the associate professor of economics at Singapore University of Social Sciences said.
Shrinking salaries and the downsizing of companies mean that graduates might have to seek out professions outside their areas of study to survive, said Grace Lee Hooi Yean, head of the Economics Department at Monash University, Malaysia.
She said youth unemployment in the country, which stands at 11.67 per cent, could rise sharply.
“This looming crisis could trap a generation of educated and capable youth in a limbo of unmet expectations and lasting vulnerability if the graduates are not ready to face reality and adapt to the new challenges,” she said.
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This is fast becoming the reality for final-year medical student Rebecca K. Somasundaram, who has been left without a job due to the pandemic.
After being offered a residency programme at a top specialist hospital in Kuala Lumpur, she was notified a month ago that her placement had been made void until further notice. This has thrown the 24-year-old’s plans into disarray as she was hoping to enter the workforce soon to pay off her student debts. Her plans to get married next year have also been put on hold temporarily.
“I am in constant talks with the hospital to see if there is any way I can join them soon but seeing how things are unfolding so quickly, I am slowly losing hope,” she said.
Over in Indonesia, the pandemic will trigger job losses on a national scale. To combat this, the government would need to introduce strong fiscal measures and beef up its social protection policies, said the country’s former minister of finance Muhamad Chatib Basri.
Many people on lower incomes tend to work in the extraction industry, such as mining and palm oil, and these are the first industries hit due to the global slowdown.
“The rich will be able to brave the storm, but the poor have no means to do so,” he said.
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SPECTRE OF 1997
With partial lockdowns imposed in the capital of Jakarta, more needs to be done to ensure that vulnerable citizens have access to food and financial support.
Without government intervention, economic woes could soon translate into political instability, a scenario last seen in the Asian financial crisis.
In 1997, waves of discontent sparked racial riots in Indonesia that toppled the country’s long-time strongman Suharto, while in Thailand a political crisis created the conditions for populist leader Thaksin Shinawatra to rise.
Rising discontent could have serious implications at the ballot boxes, warned Basri, who said young voters were a key voting bloc for President Joko “Jokowi” Widodo.
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In last year’s general elections, Jokowi proved a hit among the lower-educated youth who had benefited from the creation of largely unskilled jobs during his tenure.
“With more young people expected to become unemployed in the coming months, things will only get worse from here,” said Basri, who added that the country’s youth unemployment stood at almost 20 per cent in 2018.
Indonesia, which has 268 million people and is Southeast Asia’s largest economy, had 133 million workers as of last August, according to official data.
Close to 10 per cent or about 12.27 million are university graduates but among this group, about 5.67 per cent or some 730,000 were unemployed. This was higher than the country’s overall unemployment rate at that time, which was 5.28 per cent.
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GETTING IT RIGHT
Economists say, however, that all is not lost. Much will depend on policy and how governments focus on battling the virus on the public health and economic fronts. They point to Singapore, which has launched a robust response to the crisis.
On April 6, the Singapore government announced its third budget in two months to help companies and households tide over the crisis. In all, Singapore’s total stimulus package, which aims to save jobs and keep funds flowing to companies, will cost the government a massive S$59.9 billion (US$42 billion).
The Singapore government was also preparing for a labour market that would be reluctant to hire fresh graduates on a full-time basis, said Theseira.
“There are plans to implement large-scale subsidised traineeships, which may be more palatable to companies which are worried about taking on permanent headcount this year,” he noted. “As the economic situation improves, they can be converted to permanent positions.”
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While jobs were being created for fresh graduates, many would still have to temper their expectations, such as taking jobs with lower starting pay, said DBS Bank economist Irvin Seah.
“There are still some jobs to go around. There are still some companies that may need workers. But they will need to be realistic,” he said.
For instance, despite the downturn, Singapore telco Singtel expects to recruit over 300 fresh graduates for various permanent positions this year, according to Aileen Tan, the company’s Group Chief Human Resources Officer. Many of the new hires will be in new growth areas such as the Internet of Things, analytics and cloud.
The Singtel Comcentre building in Singapore. Photo: Roy Issa
Other companies that continue to hire include those in tech across the region, including e-commerce giant Shopee, food-delivery service Foodpanda and Amazon.
In Australia, Borland suggested helping young people to remain plugged into the labour market through government-funded paid internships, or even offering them loans to go for further studies and prevent a spell of unemployment.
For now, while some young jobseekers are taking a wait-and-see approach, the reality is hitting hard for others.
Final-year National University of Singapore student H.P. Tan had all but secured a job at a public relations firm last month, after three rounds of interviews.
The Faculty of Arts and Social Sciences undergraduate was rejected via an email from the agency, which said that they could no longer hire after Covid-19 started to drastically cut business.
“When I got that rejection, it was a turning point. I didn’t think I would be directly impacted,” said the 23-year-old.
“I also applied to a few other agencies but the response has been slow, so I am now freaking out at the possibility of not being able to find a job after graduation.”
The coronavirus pandemic has completely changed patterns of consumer psychology across the world, experts say
Complexity of the crisis, the number of variables and its magnitude make a consumer recovery unprecedented and difficult to predict
The coronavirus has caused panic buying around the world as consumers frantically stockpile of goods such as toilet paper, hand sanitisers and masks. Illustration: Brian Wang
Before the coronavirus crisis began rippling through the global economy, Susan Wang had big plans for 2020.
Not only was she going to buy a new Apple MacBook and iPad, plus a projector so she could host friends for movies at home, but she was set on making a career move.
“I was planning to change my job, but my headhunter told me that all recruitment has been postponed to the second quarter,” said the 27-year-old who works for a British company in Hong Kong.
“Our headquarters in London has a plan for redundancy, too. It is better to save some money in case I get laid off.”
As Covid-19 spreads across the world, sending stock markets reeling and prompting big companies to slash jobs, Wang has become increasingly frugal like scores of other consumers from China to the United States.
She has stopped eating at restaurants and now tries to keep her weekly food bill under HK$500 (US$64), whereas in the past she wouldn’t think twice about spending HK$100 per meal.
Amid mounting uncertainty, the coronavirus pandemic – which has claimed the lives of more than 41,000 people and infected at least 842,000 worldwide – is fundamentally changing consumer behaviour in Asia, Europe and North America.
Consumer experts said the 2009 global financial crisis, the Great Depression that started in 1929 and the September 11 terrorist attacks give some clues about how and when global consumption might recover. But the complexity of this crisis, the number of variables and its magnitude make this consumer recovery unprecedented and difficult to predict, they added.
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“The coronavirus pandemic has completely changed patterns of consumer behaviour all over the world. People are afraid, and when people are afraid, they go into survival mode,” said Jesse Garcia, a Los Angeles-based consumer psychologist, who is also the CEO of market consulting firm My Marketing Auditors.
plummeted a record 44 per cent in February and those figures are only expected to get worse, with sales forecast to slump between 30 and 40 per cent in the first half of the year, according to the Hong Kong Retail Management Association.
In the US, retail sales dropped by 0.5 per cent in February, even before many states had issued stay-at-home orders to protect the world’s largest economy. The decline was the biggest fall since December 2018.
Experts say non-essential products and services are set to be worst affected by the coronavirus pandemic, while goods and services that can be consumed at home will see a spike in sales.
The coronavirus pandemic has completely changed patterns of consumer behaviour all over the world. People are afraid, and when people are afraid, they go into survival mode – Jesse Garcia
“Online consumer behaviour is frenetic,” said Ross Steinman, a professor of psychology at Widener University in the US state of Pennsylvania. “Consumers are refreshing and refreshing and refreshing websites to secure grocery delivery times, purchase paper towels from their usual big box retailer and scavenge for rice and canned soup from third party sellers on Amazon.
“A pronounced spike in coronavirus cases will only amplify the freneticism.”
So far, one of the biggest shortages for consumers is toilet paper. Television stations across the globe have beamed images of empty supermarket shelves and huge queues as people hoard toilet paper rolls, masks and hand sanitiser.
The frantic stockpiling can be explained by a psychological concept called informational conformity, said Vicki Yeung, associate professor at the Department of Applied Psychology at Lingnan University in Hong Kong.
A pronounced spike in coronavirus cases will only amplify the freneticism – Ross Steinman
“When people lack knowledge and are in an uncertain situation, they tend to follow the group’s behaviour and blindly conform, but once they obtain more information, and digest and process the situation, the panic gradually fades away,” she said.
“During this Covid-19 pandemic, people generally feel jittery and anxious because they feel their sense of control has disappeared.”
Unlike other recent global crises such as the September 11 attacks, the coronavirus is less a one-time sharp shock to the system and more of a rolling source of anxiety that could retreat and resurface repeatedly, consumer behaviour experts said.
This was the pattern with the Black Death plague that hit Europe in 1347 and returned episodically over many years, ultimately killing millions of people.
During this Covid-19 pandemic, people generally feel jittery and anxious because they feel their sense of control has disappeared – Vicki Yeung
“It may be we’ll have to shut down things again in October or August. And this could go on for years,” said Charley Ballard, an economist with Michigan State University in the US. “The more that happens, the more damage it does to buoyant consumer psychology.”
Furthermore, relative to the 2009 financial crisis and even the Great Depression, when much of the damage was concentrated at least initially in the financial sector, this crisis has seen virtually the entire economy grind to a halt all at the same time, devastating employment and consumption.
Last week, a record 3.3 million Americans applied for unemployment benefits within one week, as restaurants, hotels, barber shops, gyms and retail outlets shut down in a nationwide bid to stem the pandemic. The previous record of 695,000 was set in 1982.
On Tuesday, Goldman Sachs predicted the US jobless rate will hit 15 per cent in the second quarter of this year from the coronavirus economic freeze, and could rise further beyond that to near the historic peak of 24.9 per cent seen in 1933 during the Great Depression. Economists at the St. Louis district of the US Federal Reserve projected unemployment could cost as many as 47 million jobs in the US this year, sending the unemployment rate past 32 per cent before making a sharp recovery.
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China’s unemployment rate jumped to 6.2 per cent for January and February from 5.2 per cent in December and 5.3 per cent a year earlier. It was the highest level since records began in 2016, but did not include China’s estimated 291 million migrant workers.
Consumer spending accounts for more than 60 per cent of the Chinese economy and drives 70 per cent of the US economy. But with the pandemic causing many people to go into hibernation and likely to lead to cycles of job cuts, economists have predicted a consumer-led global recession by the second quarter of this year.
Just how long it will take for consumer behaviour to return to normal depends on each person’s psychological resilience, including how quickly they can adapt to change, how optimistic they are and whether they can adopt strategies to regain a sense of control, Yeung said.
Anirban Mukhopadhyay, chair professor of marketing at Hong Kong University of Science and Technology said as long as the coronavirus threat was still present, people would remain fearful to some extent. But he added that people were resilient.
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“Human beings adapt to events and stimuli over time,” Mukhopadhyay said. “Research has shown that even people who win lotteries tend to return to their earlier levels of life satisfaction after some months, as do people who have to have amputations.
“So even if the source of the fear does not go away, we learn to live with it.”
Ballard, from Michigan State University, estimated it could take upwards of two years for American consumers to feel secure enough in their jobs and gain enough confidence to fully open their wallets. A longer and more episodic duration for the disease could push that higher, he added.
Further complicating the consumer picture, he said, is that many supply chains are at risk of breaking. And consumers will be wary of spending for a while in many traditional areas, including crowded sporting events and concerts, restaurants and flights.
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Some experts have even suggested that consumer behaviour may be permanently changed as a result of the pandemic.
“It seems very unlikely that people will get back to life as it was before, once the coronavirus is over,” said Andreas Kappes, a lecturer in psychology at City University of London.
“People’s behaviour is extremely orthodox, often referred to as the status quo bias and captured in expressions like ‘past behaviour best predicts future behaviour.’ Now, the crisis forces us to change our behaviour, radically, and we might discover that new way suits us better.”
Image copyright EPAImage caption Lee Man-hee is the founder of the Shincheonji Church
The head of the religious sect that has been at the centre of the coronavirus outbreak in South Korea has apologised to the nation for the disease’s spread.
Lee Man-hee, the leader of the Shincheonji Church of Jesus, got on his knees and bowed at a news conference.
About 60% of the country’s more than 4,000 confirmed cases are sect members.
On Monday, South Korea – the biggest hotspot outside China – reported 476 new cases, bringing the total number to 4,212. It has recorded 26 deaths.
Prosecutors have been asked to investigate Mr Lee on possible charges of gross negligence.
“Although it was not intentional, many people have been infected,” said the 88-year-old leader. “We put our utmost efforts, but were unable to prevent it all.”
Media caption Empty shelves as coronavirus ‘panic-buying’ hits Australia
Of the confirmed cases, 3,081 are from the southern city of Daegu and 73% of these cases have been linked to the Shincheonji Church near there.
In the capital Seoul, the mayor urged the city’s 10 million residents to work from home and to avoid crowded places.
But church spokesman Kim Shin-chang told the BBC they had provided a list of members, students, and buildings to authorities.
“We were worried about releasing this information because of the safety of our members,” Mr Kim said.
Media caption ‘We’re often persecuted’: Spokesman for virus-hit S Korean church defends secrecy
Mr Lee claims he is the second coming of Jesus Christ and identifies as “the promised pastor” mentioned in the Bible who will take 144,000 people to heaven with him.
The Shincheonji Church is labelled as a cult within South Korea and also in the Christian community, which results in the group often being discriminated against, persecuted or criticised, Mr Kim told the BBC.
What’s the global situation?
The number of people killed worldwide by the coronavirus has exceeded 3,000, as China reported 42 more deaths. More than 90% of the total deaths are in Hubei, the Chinese province where the virus emerged late last year.
But there have also been deaths in 10 other countries, including more than 50 in Iran and more than 30 in Italy.
Worldwide, there have been almost 90,000 confirmed cases, with the numbers outside China now growing faster than inside China.
In other developments:
In the UK, where there are 36 confirmed cases, Prime Minister Boris Johnson has called a meeting of the emergency Cobra committee on Monday
Indonesia – one of the world’s most populous countries – has announced its first confirmed cases of coronavirus, a 64-year-old woman and her 31-year-old daughter, currently being treated at a Jakarta hospital
Iceland and Andorra also reported their first confirmed cases on Monday
Share prices in Asia and in Europe rose after central banks pledged to intervene to help protect markets from the impact of the coronavirus. Concerns about the outbreak last week wiped more than $5tn (£3.9tn) from global stocks
US sportswear giant Nike has closed its European headquarters in Hilversum city in the Netherlands after an employee tested positive for the virus
In the European hotspot of Italy, the number of infections doubled in 48 hours, the head of the country’s civil protection body said on Sunday.
There have been at least 34 deaths and 1,694 confirmed cases. Amazon said two of its employees in Italy have the virus and are under quarantine.
Countries including Qatar, Ecuador, Luxembourg and Ireland all confirmed their first cases over the weekend. On Monday, Ecuador reported five new cases of the disease, bringing the total number of infected patients in the country to six.
The US state of New York has also confirmed its first case. The patient is a woman in her 30s who contracted the virus during a recent trip to Iran. Two people have died in the US, both in the state of Washington.
A spokesman from China’s National Health Commission said the next stop would be to “focus on the risks brought by the resumption of work”.
China’s economy has taken a hit – with factory activity falling at a record rate.
On Monday, a man was sentenced to death by a Chinese court for fatally stabbing two officials at a virus checkpoint, news agency AFP reported.
Ma Jianguo, 23, refused to co-operate with officials – though it is not clear what he was told to do – and stabbed two checkpoint officials.
What has the WHO said?
On Sunday, the World Health Organization (WHO) said the virus appears to particularly affect those over 60, and people already ill.
It urged countries to stock up on ventilators, saying “oxygen therapy is a major treatment intervention for patients with severe Covid-19”.
In the first large analysis of more than 44,000 cases from China, the death rate was 10 times higher in the very elderly compared to the middle-aged.
But most patients have only mild symptoms and the death rate appears to be between 2% and 5%, the WHO said.
By comparison, the seasonal flu has an average mortality rate of about 0.1%, but is highly infectious – with up to 400,000 people dying from it each year.
Other strains of coronavirus, such as Severe Acute Respiratory Syndrome (Sars) and Middle East Respiratory Syndrome (Mers), have much higher death rates than Covid-19.
US retailer Costco was forced to close early on its opening day in China, after the store was swamped with shoppers.
Buyers battled long queues and traffic chaos, before the Shanghai store was shut hours early due to “overcrowding”.
Costco’s push into China comes as other foreign retailers have struggled to compete with local rivals.
It also comes at a time of rising tensions between the US and China over trade.
Costco is a discount warehouse store that sells a range of goods, from fresh foods to household electronics.
Some customers spent two hours lining up to pay for their purchases, while some had to wait three hours for parking, state news agency Xinhua reported.
Image copyright AFPImage caption Images from the store show customers caught up in heavy crowds
One video showed people pushing through heavy crowds to get their hands on roast chickens.
“Due to overcrowding in the market, and in order to provide you with a better shopping experience, Costco will temporarily close on the afternoon of August 27. Please avoid coming,” the retailer in a notice on its official app, according to AFP.
Image copyright GETTY IMAGESImage caption Some customers reportedly spent two hours lining up to pay for their goods
Costco has had an online presence in China since 2014, through a partnership with e-commerce giant Alibaba.
The firm’s first store in the country comes as other international retailers battle tough competition in China.
Earlier this year, Amazon said it was downsizing its operations in China and France’s Carrefour agreed to sell 80% of its China business to local retailer Suning.com after a series of losses.
The world’s two largest economies have been fighting a trade war for the past year, and tensions have escalated with the threat of more tariffs from both sides.
’s affordable labour market and strong economic growth provide a healthy breeding ground for young tech outfits.
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Led by heavyweights such as Shunwei Capital, Fosun International, Tencent Holdings, Xiaomi and Alibaba Group Holding – which owns the South China Morning Post –
, the knowledge and technology of Chinese investors act as the backbone of their business, along with the operational expertise of Indians in the domestic market,” said Ntasha B, co-founder of Venture Gurukool, a mentoring platform for start-ups which works closely with Indian diplomatic missions in China.
Chinese President Xi Jinping and Indian Prime Minister Narendra Modi are set to meet again in October. Photo: Xinhua
She added that Chinese investors usually had a hands-on approach and were a bit inflexible, unlike their American counterparts, who gave some elbow room in hiring local teams.
A senior executive with an Indian start-up, who did not wish to be identified, said it was sometimes straightforward to convince Chinese investors as they could relate to Indian business models and requirements that were dissimilar to those from the Western world.
The world’s second-largest economy invested nearly US$2.5 billion in Indian start-ups last year, a figure that has touched almost US$1 billion so far this year, according to finance research firm Venture Intelligence. The number of such deals jumped from just one in 2013 to 27 last year.
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Indian start-ups are estimated to have raised US$3.9 billion from around the globe in the first six months of this year, and the inflow from Chinese behemoths played a key role in pushing them to turn east to source funding.
“What’s more interesting about [Chinese investors’] strategy is that they’re paying more attention to rural India. If you look at the companies they’ve invested in, a fair amount of their businesses target the rural segment,” said Sandeep Murthy, managing partner at venture capital firm Lightbox Ventures, which keeps a close watch on Chinese investments. He said the brisk economic activities in India’s tier two and tier three towns are more attractive to Chinese investors than India’s urban centres.
Ctrip, China’s largest online travel agency, is drawn to the size and rapid advancement of the Indian market. Photo: Bloomberg
WHY INDIA?
For Ctrip – China’s largest online travel agency, which in April took a 49 per cent stake in MakeMyTrip – the appeal of India was its whirlwind technological advancement and the disposable income of its massive young population.
“[MakeMyTrip has] achieved fast growth in the online travel market and is becoming well recognised in the Indian market. Their comprehensive products and services, management team and the opportunities in India result in our confidence that they will continue to succeed,” said Wei Yuan Min, a member of Ctrip’s global team. Behind the US and China, India houses the world’s third-largest start-up ecosystem in terms of the number of companies. As for the number of unicorns – start-ups valued at over US$1 billion – India ranks third, offering a vibrant habitat for entrepreneurial ventures. The country is home to 32 such firms, with the addition of nearly half a dozen so far this year and 15 last year.
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New Delhi expects there to be 12,000 tech start-ups in the country by next year, up from 7,200 last year. There were 1,200 new tech firms in the sector last year, according to industry body Nasscom.
One of those capitalising on this opportunity is the Beijing-headquartered technology company Xiaomi, which last year promised to pump US$1 billion into 100 Indian start-ups over the next five years. Most of these Indian firms are involved in businesses that are ancillary to Xiaomi’s key operations.
Chinese firm Xiaomi is banking on Indian start-ups to strengthen its own products. Photo: Reuters
“These start-ups help us in building a stronger product offering,” a Xiaomi spokesperson said. “The idea is to invest in start-ups which can further boost the mobile ecosystem in India. They could be into mobile gaming, service providers, value-added services or servicing the mobile industry.”
Xiaomi has been rapidly expanding its businesses in India, selling smartphones, television sets, security cameras, speakers, power banks, and more. India was the first market outside China where Xiaomi introduced its television sets.
Asked which sector would be Xiaomi’s focus for investment in the coming years, the spokesperson said the company was looking to focus on hardware-related start-ups in the ecosystem which could offer “robust solutions” to its Indian requirements.
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While hopes for India’s start-up sector are high, there have been some disappointments. There were reports this month that Alibaba, a major shareholder in Paytm, was unhappy with the Indian firm’s performance, pressuring it to realign its strategies and looking unlikely to provide fresh capital.
Paytm, a digital-payment-system unicorn, launched its own e-commerce Paytm Mall in 2016 when Walmart-backed Flipkart and Amazon were dominating the market.
However, the venture has yet to take off and is burning through cash.
Paytm refused to comment on the matter.
Paytm has attracted investment from Alibaba, but its Paytm Mall venture is struggling. Photo: Bloomberg
NEW REVENUE STREAMS
Chinese firms’ coordinated effort to enter the Indian start-up scene has made it easy for Indian ventures to access new sources of revenue. For instance, the state-run Industrial and Commercial Bank of China (ICBC), the country’s largest lender, launched an India-specific investment fund for Chinese investors in May last year.
Several Chinese venture capitalists are also providing platforms for entrepreneurs through fellowship schemes. Four Indian ventures – Zefo, Healthy Buddha, NowFloats and Grozip – took part in one such fellowship initiative run by Alibaba last year.
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India has warmly welcomed these initiatives. Amitabh Kant, chief executive of state-backed policy think tank Niti Aayog and a close aide of Modi, has publicly said China should become the topmost investor in its neighbour.
Vikram Misri, India’s ambassador to China, has also been pushing for increased economic cooperation and Chinese investment since he took charge in January, despite expressing concerns over New Delhi’s widening trade deficit with Beijing.
Vikram Misri, India’s ambassador to China, is looking for more economic cooperation between the two countries. Photo: Xiaomei Chen
The increased Chinese investment in Indian ventures has coincided with the Modi administration’s 2015 launch of the Startup India initiative, an umbrella scheme aimed at easing related activities through measures such as tax exemptions and simplified paperwork.
Industry pundits say active cooperation between Chinese investors and Indian entrepreneurs holds a multitude of benefits for both sides.
“The cooperation gives Chinese investors global scale and opportunity to diversify their investments,” said Neil Shah, partner and research director at the technology market research firm Counterpoint.
The cooperation gives Chinese investors global scale and opportunity to diversify their investmentsNeil Shah, Counterpoint
“For Indian start-ups, this gives cross-border learning, guidance from their global investors on dos and don’ts, tactical and long-term strategy, how to create value, run operations efficiently as well as expand beyond India.”
Nilaya Varma, partner and leader of markets enablement at KPMG India, said there was a cultural shift happening in the country where young Indians brimming with ideas wanted to pursue their dreams rather than work for someone else. This brought out the entrepreneurial spirit of this generation, he said.
“The knowledge, concepts, ideas and innovations of the small start-ups in India will have a global appeal. So it makes a lot of sense for Chinese big players to invest here,” he said.
Brahma Chellaney writes that excessive damming and drastic overuse of water resources are causing the world’s major waterways to run dry
Vessels head for the lock of the Three Gorges Dam in Yichang, in central China’s Hubei province. Sediment build-up in the dam’s reservoir stems from silt flow disruption in the Yangtze River, Brahma Chellaney writes. Photo: Xinhua
Thanks to excessive damming and drastic overuse of water resources, an increasing number of major rivers across the world are drying up before reaching the sea.
Nowhere is this more evident than in China, where the old saying, “Follow the river and it will eventually lead you to a sea,” is no longer wholly true.
While a number of smaller rivers in China have simply disappeared, the Yellow River – the cradle of the Chinese civilisation – now tends to run dry before reaching the sea.
This has prompted Chinese scientists to embark on a controversial rainmaking project to help increase the Yellow’s flow. By sucking moisture from the air, however, the project could potentially affect monsoon rains elsewhere.
For large sections of the world’s population, major river systems serve as lifelines. The rivers not only supply the most essential of all natural resources – water – but also sustain biodiversity, which in turn supports human beings.
Yet an increasing number of rivers, not just in China, are drying up before reaching the sea.
A major new United Nations study published early this month offers grim conclusions: human actions are irremediably altering rivers and other ecosystems and driving increasing numbers of plant and animal species to extinction.
“Nature across the globe has now been significantly altered,” according to the study’s summary of findings.
The Yangtze and Jialing rivers come together in the southwestern city of Chongqing. Photo: Simon Song
Water sustains life and livelihoods and enables economic development.
If the world is to avert a thirsty future and contain the risks of greater intrastate and interstate water conflict, it must protect freshwater ecosystems, which harbour the greatest concentration of species.
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Yet, according to another study published in Nature this month humans have modified the flows of most long rivers, other than those found in the remote regions of the
Amazon and Congo basins and the Arctic.
Consequently, only a little more than one-third of the world’s 246 long rivers are still free-flowing, meaning they remain free from dams, levees and other man-made water-diversion structures that leave them increasingly fragmented.
Humans have modified the flows of most long rivers, including the Yangtze, home to some of China’s most spectacular natural scenery. Photo: WWF
Such fragmentation is affecting river hydrology, flow of nutrient-rich sediment from the mountains where rivers originate, riparian vegetation, migration of fish and quality of water.
Take the Colorado River, one of the world’s most diverted and dammed rivers. Broken up by more than 100 dams and thousands of kilometres of diversion canals, the Colorado has not reached the sea since 1998.
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The river, which originates in the Rocky Mountains and is the lifeblood for the southwestern United States, used to empty into the Sea of Cortez in Mexico.
But now, owing to the upstream diversion of 9.3 billion cubic metres (328.4 billion cubic feet) of water annually, the Colorado’s flow into its delta has been reduced to a trickle.
Altering the flow characteristics of rivers poses a serious problem for sustainable development, because they affect the ecosystem services on which both humans and wildlife depend. Photo: AP
Other major rivers that run dry before reaching the sea include the Amu Darya and the Syr Darya, the two lifelines of Central Asia; the Euphrates and the Tigris in the Middle East; and the Rio Grande, which marks the border between Texas and Mexico before heading to the Gulf of Mexico.
The overused Murray in Australia and Indus in Pakistan are at risk of meeting the same fate.
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More fundamentally, altered flow characteristics of rivers are among the most serious problems for sustainable development, because they seriously affect the ecosystem services on which both humans and wildlife depend.
Free-flowing rivers, while supporting a wealth of biodiversity, allow billions of fish – the main source of protein for the poor – to trek through their waters and breed copiously.
Urgent action is needed to save the world’s rivers, including improving agricultural practices, which account for the bulk of freshwater withdrawals
Free-flowing rivers also deliver nutrient-rich silt crucial to agriculture, fisheries and marine life.
Such high-quality sediment helps to naturally re-fertilise overworked soils in the plains, sustain freshwater species and, after rivers empty into seas or oceans, underpin the aquatic food chain supporting marine life.
China’s hyperactive dam building illustrates the high costs of river fragmentation. No country in history has built more dams than China. In fact, China today boasts more large dams than the rest of the world combined.
China’s chain of dams and reservoirs on each of its long rivers impedes the downstream flow of sediment, thereby denying essential nutrients to agricultural land and aquatic species.
A case in point is China’s Three Gorges Dam – the world’s largest – which has a problematic build-up of sediment in its own massive reservoir because it has disrupted silt flows in the Yangtze River.
Likewise, China’s cascade of eight giant dams on the Mekong, just before the river enters Southeast Asia, is affecting the quality and quantity of flows in the delta, in Vietnam.
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Undeterred, China is building or planning another 20 dams on the Mekong.
How the drying up of rivers affects seas and oceans is apparent from the Aral Sea, which has shrunk 74 per cent in area and 90 per cent in volume, with its salinity growing nine-fold.
People beat the heat by cooling off in the Yangtze River in Wuhan, in central China’s Hubei province. Photo: Nora Tam
This change is the result of the Aral Sea’s principal water sources, the Amu Darya and Syr Darya, being so overexploited for irrigation that they are drying up before reaching what was once the world’s fourth-largest inland lake.
Compounding the challenges is the increasing pollution of rivers. Aquatic ecosystems have lost half of their biodiversity since the mid-1970s alone.
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Urgent action is needed to save the world’s rivers. This includes action on several fronts, including improving practices in agriculture, which accounts for the bulk of the world’s freshwater withdrawals.
Without embracing integrated water resource management and other sustainable practices, the world risks a parched future.
ENJERLA/NEW DELHI, India (Reuters) – It was supposed to be Johnson & Johnson’s biggest manufacturing plant in India. It was to eventually employ at least 1,500 people and help bring development to a rural area near Hyderabad in southern India.
Yet, three years after the U.S. healthcare company completed construction of production facilities for cosmetics and baby products on the 47-acre site, they stand idle.
Two sources familiar with J&J’s operations in India and one state government official told Reuters production at the plant, at Penjerla in Telangana state, never began because of a slowing in the growth in demand for the products.
One of them said that demand didn’t rise as expected because of two shock policy moves by Prime Minister Narendra Modi: a late 2016 ban on then circulating high-value currency notes, and the nationwide introduction of a goods and services tax (GST) in 2017.
J&J spokespeople in its Mumbai operations in India and at its global headquarters in New Brunswick, New Jersey, declined to respond to a list of questions from Reuters.
Modi’s office did not respond to a call and an email with questions.
Aimed at rooting out corruption and streamlining the tax system, the double whammy of ‘demonetization’ and GST – were two of Modi’s signature policy moves. But instead of encouraging economic activity as intended, they did the opposite, at least in 2016-2018, by sapping consumer demand, according to some economists.
Many businesses, especially small and medium-sized enterprises, complained publicly – some in their financial statements – that they suffered a drop off in orders. The suspended J&J project stands as one of the most vivid examples of the impact on the broader investment picture.
In the first month after demonetization, some business surveys showed that sales of products such as shampoos and soap fell more than 20 percent.
Lack of jobs growth and a farm-income crisis because of low crop prices have hurt Modi in the current general election, according to several political strategists.
Still, Modi and his ruling Hindu nationalist Bharatiya Janata Party are expected by many of the strategists to be in a position to get a second term – probably with support of some other parties – when votes are counted on Thursday, partly because of his strong stance on national security issues.
BIG INVESTMENTS, GREAT EXPECTATIONS
A range of Modi’s business policies, such as capping prices of medical devices, forcing tech companies to store more data locally and stricter e-commerce regulations have in the past two years hurt plans of American multinationals such as J&J, Mastercard, Amazon and Walmart-owned Flipkart.
The groundbreaking of the J&J facility in Penjerla, its third in the country, was carried out with much fanfare in 2014, attended by Telangana state’s Chief Minister Chandrashekar Rao, who hailed the foreign investment as a big win for local communities. A document dated April 2017 that lists products the company planned to make at the facility, submitted to the Telangana government and reviewed by Reuters, names baby oil, baby shampoo, baby lotion, baby hair oil, face wash and creams.
Shaukat Ali, running a tea shop under a bamboo stall on barren land outside the plant, said local workers check in routinely for possible vacancies at the J&J site, but nothing has come up in years.
At the local pollution control board office, the member secretary Satyanarayana Reddy said the J&J plant had all the required approvals and he was not sure why it hadn’t started production.
“It is unusual for such a big plant to stay idle for so long,” he said. “But there is no problem from our side.”
Chandrasekhar Babu, an additional director at the Telangana industries department, said a J&J company official told him the plant hadn’t started due to lack of demand.
GST and demonetization were two key reasons the plan didn’t kick off, one of the sources said, adding that lack of consumer demand since then dented company’s plans.
The second source familiar with J&J’s plans said the company miscalculated Indian market demand.
On a recent visit by a Reuters reporter to the J&J plant, plush, furnished conference rooms and cubicles sat inactive; M. Sairam, who said he was the site manager, told Reuters production areas with machines were idle too.
PLANNED FURTHER EXPANSION
Local officials had hoped the initial J&J plant would be only the beginning. After the groundbreaking in 2014, Pradeep Chandra, who was Telangana’s special chief secretary of industries, told Business Today magazine that “based on the extent of land (J&J) have acquired we believe that they are looking at much larger expansion here.”
Local media reports at the time said the J&J facility would employ some 1,500 people.
A J&J official, who was not identified by name, was reported subsequently in December 2016 in India’s Business Standard assaying that the $85 million plant would be operational by 2018 after it had overcome procedural delays. The official was quoted as saying the company had earmarked an additional $100 million for expansion.
Vikas Srivastava, the managing director of J&J Consumer(India), who was at the 2014 groundbreaking, did not respond to calls for comment.
Reuters also talked to two workers outside a sprawling Procter & Gamble facility making detergents and diapers, which is next to the J&J plant. They said they were part of the P&G plant’s production team and the plant had been running below capacity.
A P&G spokesperson denied that, saying the plant was “operating at full capacity in line with our business plans”. “India is a priority market for P&G globally and in recent quarters, P&G’s business in India has registered strong double-digit growth consistently,” the company said.
The weak rural economy, where most Indians work, has also hurt growth in sales of basic items such as detergents and shampoo in the past year.
Hindustan Unilever Ltd, an industry bellwether that would compete with the likes of J&J and P&G in some categories, said its volume growth shrank to 7 percent in the quarter ended March 31, down from double-digit growth in the previous five quarters.
The company warned that the daily consumer goods segment in India was “recession resistant … not recession proof.”
MUMBAI (Reuters) – Amazon.com faced a social media backlash in India on Thursday after toilet seat covers and other items emblazoned with images of Hindu gods were spotted on its website.
Thousands of Twitter users backed a call for a boycott of the U.S. retailer, making #BoycottAmazon India’s top trending topic on Twitter. Some tagged Indian Foreign Minister Sushma Swaraj, urging her to take action against the company.
Amazon, the world’s biggest online retailer, said it was removing the products from its online store.
“All sellers must follow our selling guidelines and those who do not will be subject to action including potential removal of their account,” the company said in a statement.
The episode is reminiscent of an incident in 2017 when the Indian government took Amazon to task after its Canadian website was spotted selling doormats resembling India’s flag.
Swaraj at the time threatened to rescind visas of Amazon employees if the doormats were not removed from its site.
Reuters found several listings of toilet seat covers, yoga mats, sneakers, rugs and other items depicting Hindu gods, or sacred Hindu symbols, on Amazon’s U.S. website.
Some of the items were no longer available for purchase.
“Until you hit these Hinduphobics Business hard they will keep on insulting your gods, your beliefs & your entire civilization,” tweeted Sumit Kandel, whose profile describes him as a film trade analyst.
Amazon plans to shut its online store in China that allows shoppers to buy from local sellers as it downsizes operations in the country.
The firm said it would no longer run the domestic marketplace from July, but Chinese shoppers will still be able to order goods from Amazon’s global store.
It will also continue to operate its cloud business in China.
The retail retreat comes as Amazon faces tough competition from local rivals Alibaba and JD.com.
Reuters first reported Amazon’s plans to close its domestic marketplace in China by mid-July to focus on more lucrative businesses selling overseas goods and cloud services. Amazon’s profitable cloud computing division hosts huge swathes of the corporate world on its data servers.
A spokesperson for the company said in a statement that it was “working closely with our sellers to ensure a smooth transition and to continue to deliver the best customer experience possible”.
Consumers accessing Amazon Chinese web portal, Amazon.cn, after 18 July will see a selection of goods from its global store, Bloomberg reported.
Amazon bought Joyo.com, a Chinese books, music and video retailer, for $75m (£57.4m) in 2004. It rebranded the company as Amazon.cn in 2007.
But it has struggled to compete with dominant players JD.com and Alibaba’s Tmall marketplace in China.
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