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.
China is now making more than 100 million masks a day, up from 20 million before the coronavirus outbreak, and may start to export more to other countries
Mask shortages elsewhere once more raise the debate about an over-reliance on China, with critics pointing to a lack of US industrial policy
China was producing 116 million masks per day of February 29, including a mix of disposable and high-end masks like the American-designed N95 model worn by President Xi Jinping on his trip on Tuesday to Wuhan. Photo: Xinhua
The Liu family factory has been making diapers and baby products in the Chinese city of Quanzhou for over 10 years, but in February, for the first time, it started making face masks, as demand soared spectacularly due to the coronavirus outbreak.
The business – which employs 100 people in the Southeastern Fujian province – has added two production lines to make up to 200,000 masks a day.
And while the decision was primarily commercial, “encouragement” from the Chinese government – in the form of subsidies, lower taxes, interest-free loans, fast-track approvals for expansion and help alleviating labour shortages – made the decision an obvious one, said Mr Liu who preferred only to give his family name.
“The government is advocating an expansion in production,” Liu said. “With faster approvals, producers need to prioritise the government’s needs over exports.”
WHO declares coronavirus crisis a pandemic
The factory is one of thousands of refitted pop-ups around China making masks and other protective equipment for the first time, part of a massive industrial drive to respond to the spread of the coronavirus.
Before the outbreak, China already made about half the world’s supply of masks, at a rate of 20 million units a day. That rose to 116 million as of February 29, according to China’s state planning agency, a mix of disposable and high-end masks like the American-designed N95 model worn by President Xi Jinping on his trip on Tuesday to Wuhan, the epicentre of the outbreak.
This exponential jump is the result of a wartime-like shift in industrial policy, with Beijing directing its powerful state-owned enterprises to lead the nationwide mask-making effort, and the country’s sprawling manufacturing engine following their lead.
For me, this is the big advantage of China, the speed Thomas Schmitz
“For me, this is the big advantage of China, the speed,” said Thomas Schmitz, president of the China branch of Austrian engineering giant Andritz, which has seen a big uptick in demand for its wet wipe-making machines in recent weeks, also due to the virus. “When you need to run, people know how to run, and this is something which has been lost in other countries since their industrial heydays.”
Chinese oil and gas major Sinopec upped production of mask raw materials such as polypropylene and polyvinyl chloride in January. This week, it set up two production lines in Beijing to produce melt-blown non-woven fabric, intended to make four tonnes of the fabric each day, which can then be used to produce 1.2 million N95 respirators or six million surgical masks a day.
The maker of China’s new J-20 stealth fighter jet, Chengdu Aircraft Industry Group, repurposed part of its factory to design a mask production line, according to local media reports. The SichuanDaily said 258 of the company’s engineers spent three days fast-tracking development of an assembly line with more than 1,200 components.
Coronavirus: From mysterious origins to a global threat
More than 2,500 companies in China have reportedly started making masks, among them 700 technology companies including iPhone assembler Foxconn and smartphone makers Xiaomi and Oppo, in an extraordinary mobilisation of resources.
The result resembles “the war effort” in the middle of the last century in the United States and western Europe, but arguably no other nation could undergo such a transformation so quickly today.
It is a reminder of what can happen in a centrally-planned economy with a strong manufacturing base, but also brings into sharp focus some of the geopolitical issues which have characterised China’s at-times difficult relationship with the rest of the world, particularly the European Union and US, over the past couple of years.
China’s dominance in manufacturing has become all the more evident as the rest of the world scrambles to shore up their own dwindling medical supplies, leading many to wonder why the world is so dependent on it for vital supplies.
The lesson for Washington is not that we need to emulate the Chinese economic model, but rather that we need to better steward the industrial base in key sectors Rush Doshi
The Italian government, which is dealing with the highest number of coronavirus cases and deaths after China, is to take shipment of 1,000 ventilators, 2 million masks, 100,000 respirators, 200,000 protective suits and 50,000 testing kits from China.
Italian foreign minister Luigi Di Maio said after a phone call with Chinese counterpart Wang Yi, they had agreed the export deal in the same week that European neighbours France and Germany banned masks from being exported because of low domestic supplies.
The Italy export deal showed that “China is emerging as a global public goods provider as the US proves unable and unwilling to lead,” said Rush Doshi, the director of the China Strategy Initiative at the Washington-based Brookings Institute think tank.
“China’s ability to produce what is needed to fight coronavirus is not simply a product of its economic model – it’s also a product of its industrial capacity,” Doshi said. “The US once had this capacity too, but it has lost important parts of it. The lesson for Washington is not that we need to emulate the Chinese economic model, but rather that we need to better steward the industrial base in key sectors.”
The frustration is felt acutely by Michael Einhorn, president of medical equipment distributor Dealmed-Park Surgical in New York, who has been trying to source stock from China for weeks, “but cannot get straight answers” from vendors.
Einhorn said he placed an order with a private seller in China’s virus-stricken city last week, but that the goods had not been shipped.
“Everyone is running out here, people are panicking in hospitals and we want to be able to help our most important customers,” Einhorn said. “We are dealing with hospitals that do not have products, how in the United States of America in 2020 did this happen?”
With the number of confirmed coronavirus cases in China falling daily, it is not inconceivable that the sort of export deal struck with Italian leaders becomes commonplace, although for now, it deal can be chalked up as a significant public relations coup for Beijing.
The World Medical Association is unable to specify how many masks are required to supply frontline medical staff in virus-hit areas, but said that “this crisis should be a wake up call for politicians and societies to make the necessary investment in emergency preparedness and to look into the vulnerability of our supply chains”.
Australian-listed manufacturer Eagle Health announced on Friday that it had installed production lines at its Xiamen factory in southern China to make 300 million masks a year and said it had already received orders from China and would be securing further larger orders internationally.
The group, which normally makes products including amino acids, protein supplements and lozenges in China, said it would prioritise meeting the large domestic demand, but was aware of an impending global shortage.
Eagle Health has already commenced production of its first order of 3.2 million medical masks for the Yiling Hospital Management Group in China, a process which will take 10 days. It has other smaller orders from Chinese government agencies and expects to receive more orders outside China.
The decision to make more masks came from increased demand. These are opportunities. The global demand for high quality masks will be significant Xu Gang
“The decision to make more masks came from increased demand. These are opportunities,” said chief executive Xu Gang. “The global demand for high quality masks will be significant. Imagine when the schools open. The situation will take some time to peak.”
Last week, the Australian Dental Association said supplies of masks at many practices were expected to run out within four weeks. The Australian government has since arranged a supply of 54 million masks for both the dental and medical industries.
At the same time, the US only has 1 per cent of the 3.5 billion masks it would need to counter a serious outbreak, Bloomberg reported.
While China has no quota on the volume of masks that had to be hived off for local consumption, the government has said domestic demand needs to be prioritised.
Businesses are free to export but overseas demand has yet to explode like it has in China, said Fujian factory owner Liu.
Wendy Min, sales director of Pluscare, a manufacturer based near the virus’ epicentre in Hubei province, said her company is making 200,000 masks per day, much of which are sold to the government, with exports still restricted by partial lockdown of workers and cargo transport.
“We previously exported to Europe, South America and other parts of Asia,” Min said. “But at the moment we can’t export. We are trying to discuss this with the government, but we cannot wait any more – we have to export soon.”
Min said that while she was receiving countless cold calls up until last week from people in China looking for masks, these have stopped, perhaps unsurprising given the abundance in supplies becoming available.
An influx of Chinese-made masks, though, is likely to be welcomed in other virus-stricken parts of the world.
Self-quarantine of all international travellers to Beijing as China fights import of coronavirus
Miguel Luiz Gricheno, CEO of Brazilian mask manufacturer Destra, said that his company is making 30,000 masks a day, but cannot meet local demand due to a lack of supplies, including the non-woven fabric from which masks are made.
“In disposable masks, most Brazilian companies are paralysed due to the lack of raw materials,” Gricheno said. “With the arrival of the coronavirus in Brazil, the demand has increased a lot but the main raw material comes from abroad.”
However, a short-term supply fix will not answer underlying questions about how so many countries found themselves in such dire straits,meaning the geopolitical fallout of the coronavirus will be extensive.
Decades of weak industrial policy helped elect US President Donald Trump, who said he would bring manufacturing jobs back to America at China’s expense. While he has waged a bruising two-year trade war with China in response, the current situation shows just how difficult it will be to change the global manufacturing processes, which are so heavily controlled by China.
One of the great flaws of globalisation is that everyone wanted things cheaper, but did you compromise your health care infrastructure in the process? Stephen Roach
“In the guise of trying to improve efficiency and create value for price-sensitive consumers, we’ve created a global production network that is very difficult to unwind,” said Stephen Roach, a professor of economics at Yale University and a veteran China watcher. “One of the great flaws of globalisation is that everyone wanted things cheaper, but did you compromise your health care infrastructure in the process.
Reuters reported that Trump is considering invoking the emergency provisions of the Defence Production Act, which would allow the government to instruct companies to alter production to help address the domestic shortage of medical supplies like masks. If a company is producing 20 per cent N95 masks and 80 per cent standard masks, the White House could order them to rejig the ratio, an unnamed official said.
The New York Times reported on Wednesday that the White House is preparing an executive order that would allow the government to buy medical supplies from overseas in the hope that it will incentivise companies to make them within the US.
But these changes still do not give Trump the sort of sweeping powers enjoyed by Chinese counterpart Xi.
“When you have a pluralistic, democratic situation that Trump is overseeing, it becomes more unwieldy” to take the steps necessary to address a crisis situation, said Harry Broadman, chair of the emerging markets practise at the Berkeley Research Group and a senior US government official in the 1980s and 1990s.
“That is why I think Trump looks at Xi with envy, because he doesn’t have to deal with a disparity of views or democratic interests,” Broadman said. “I think Trump is at heart a bilateral guy, as you saw with the phase one [US-China] trade deal and the state-to-state purchases. That is why he likes dealing with [Russian President Vladimir] Putin and Xi, because each of them can move mountains. I think Trump is very envious of that ability.”
SHANGHAI/SEOUL (Reuters) – Asia reported hundreds of new coronavirus cases on Wednesday, including a U.S. soldier stationed in South Korea, as the United States warned of an inevitable pandemic and outbreaks in Italy and Iran spread to other countries.
World stocks tumbled for the fifth day on fears of prolonged disruption to global supply chains, while safe-haven gold rose back toward seven-year highs and U.S. bond yields held near record lows.
Stock markets globally have wiped out $3.3 trillion of value in the past four trading sessions, as measured by the MSCI all-country index.
The disease is believed to have originated in a market selling wildlife in the central Chinese city of Wuhan late last year and has infected about 80,000 people and killed more than 2,700, the vast majority in China.
RELATED COVERAGE
Trump returns to U.S. as country warily eyes spread of coronavirus
Facebook to ban misleading ads about coronavirus
The U.S. Centers for Disease Control and Prevention urged Americans to prepare, saying that while the immediate risk there was low the global situation suggested a pandemic was likely.
“It’s not a question of if. It’s a question of when and how many people will be infected,” the CDC’s principal deputy director, Anne Schuchat, said on Tuesday.
World Health Organization (WHO) chief Tedros Adhanom Ghebreyesus, however, advised against referring to a pandemic.
“We should not be too eager to declare a pandemic without a careful and clear-minded analysis of the facts,” Tedros said in remarks to Geneva-based diplomats.
“Using the word pandemic carelessly has no tangible benefit, but it does have significant risk in terms of amplifying unnecessary and unjustified fear and stigma, and paralyzing systems. It may also signal that we can no longer contain the virus, which is not true.”
‘DON’T WAIT’
The United States has reported 57 cases of the virus. U.S. President Donald Trump, back in Washington after a visit to India, said on Twitter that he would meet U.S. officials for a briefing on the coronavirus on Wednesday.
Dr Bruce Aylward, head of a joint WHO-Chinese mission on the outbreak, told reporters on his return to Geneva that countries’ preparations should not wait.
“Think the virus is going to show up tomorrow. If you don’t think that way, you’re not going to be ready,” he said. “This a rapidly escalating epidemic in different places that we have got to tackle super-fast to prevent a pandemic.”
Aylward said China’s “extraordinary mobilization” showed how an aggressive public health policy could curb its spread.
The WHO says the outbreak peaked in China around Feb. 2, after authorities isolated Hubei province and imposed other containment measures.
China’s National Health Commission reported another 406 new infections on Wednesday, down from 508 a day earlier and bringing the total number of confirmed cases in mainland China to 78,064. Its death toll rose by 52 to 2,715.
The WHO said only 10 new cases were reported in China on Tuesday outside Hubei.
South Korea, which with 1,261 cases has the most outside China, reported 284 new ones including a U.S. soldier, as authorities readied an ambitious plan to test more than 200,000 members of a church at the center of the outbreak.
Of the new cases, 134 were from Daegu city, where the virus is believed to have been passed among members of the Shincheonji Church of Jesus, the Korea Centers for Disease Control and Prevention said.
The U.S. military said a 23-year-old soldier based in Camp Carroll, about 20 km (12 miles) from Daegu, had been infected and was in self-quarantine at home.
OLYMPIC WORRIES
In Japan, Prime Minister Shinzo Abe called for sports and cultural events to be scrapped or curtailed for two weeks to stem the virus as concern mounted for the 2020 Tokyo Olympics.
Japan’s professional baseball teams would play matches without spectators until March 15 due to virus concerns, Kyodo news agency reported.
Japan has nearly 170 virus cases, besides the 691 linked to a cruise ship that was quarantined of its coast this month. Six people have died in Japan, including four from the ship.
There have been nearly 50 deaths outside China, including 11 in Italy and 19 in Iran, the most outside China, according to a Reuters tally.
Iran’s deputy health minister – seen mopping his brow at a televised news conference – was among its 139 coronavirus infections. Cases linked to Iran have been reported across the region.
Kuwait said six new coronavirus cases, all linked to travel to Iran, took its tally to 18, while Bahrain said its infections had risen to 26 after three new ones on a flight from Iran.
The United Arab Emirates, which has reported 13 coronavirus cases, is prepared for “worst case scenarios” as it spreads in the Middle East, a government official said.
In Europe, Italy has become a front line in the global outbreak with 322 cases. Italians or people who had recently visited the country, have tested positive in Algeria, Austria, Croatia, Romania, Spain and Switzerland.
Two hotels, one in Austria and one in Spain’s Canary Islands, were also locked down after cases emerged linked to Italy. Spain also reported its first three cases on the mainland.
State-owned carrier’s chief says it wouldn’t be ‘morally acceptable’ to stop flying to the country, and it will stand with its ‘Chinese brothers and sisters’
Dozens of airlines have cancelled or reduced services to the nation amid the virus outbreak, including two East African rivals
Ethiopian Airlines says it will continue flying to China. The routes are among its most profitable. Photo: Shutterstock
Ethiopian Airlines, Africa’s largest and most profitable carrier, will continue flying to China despite growing pressure for it to suspend services to the country as
Dozens of airlines around the globe have cancelled or reduced their services to cities in the world’s second-largest economy amid fears over the outbreak. Its East African rivals Kenya Airways and RwandAir have both suspended flights to China until the outbreak is contained.
But Ethiopian Airlines chief executive Tewolde GebreMariam said the carrier would not abandon the routes, which are among its most profitable.
Tewolde told media over the weekend that the airline had been flying to China since 1973 and it would not be ethical to suspend flights to the country.
“It will not be morally acceptable to stop flying to China today because they have a temporary problem,” he said, adding that the airline would stand with its “Chinese brothers and sisters”.
His remarks came days after Kenyan President Uhuru Kenyatta put pressure on the Ethiopian government – which wholly owns Ethiopian Airlines – to halt flights to China, citing the need to curb the spread of the virus into the East African region.
Global coronavirus deaths equal Sars, while new infections drop
The airline has bucked a trend that has seen major airlines – from the United States to Europe and Asia – staying away from Chinese airspace as governments around the world move to keep the deadly virus from their borders. The pneumonia-like illness has so far
in mainland China since the outbreak began in Wuhan in December, with cases reported in more than 20 other countries worldwide.
Speaking during a visit to Washington last week, Kenyatta – who is keen to court both China and the US – insisted that Kenya’s decision to suspend flights from Guangzhou to Nairobi was not political.
He said most African countries had weak health systems that would make it harder to handle the outbreak, so preventing its spread – even if through extreme measures such as grounding flights – was the only option.
“Our worry as a country is not that China cannot manage the disease. Our biggest worry is diseases coming into areas with weaker health systems like ours,” Kenyatta said while addressing members of US think tank the Atlantic Council.
Vaccine for new coronavirus unlikely to be ready before outbreak is over, says Sars expert
But Ethiopian Airlines said it would continue flying to Beijing, Shanghai, Guangzhou, Chengdu and Hong Kong and was taking measures to protect staff and passengers. Ethiopia receives about 1,500 visitors from mainland China every day.
According to Tewolde, if the airline halted its Chinese services, China and Africa would be completely disconnected.
“No one in Ethiopian Airlines would like to see this,” he said. “We have to take maximum precautions, but stopping flights is not one of them.”
He added: “Even if we stop flying, people will continue to come to Ethiopia through Singapore, Malaysia, Europe. The transmission of the disease will be dangerously hidden … British Airways stopped flying to China for its economic reasons. But Chinese carriers are flying to the UK.”
Chinese cities keen to get back to work but coronavirus concerns grow as workers return
14 Feb 2020
In a separate statement, the carrier said China was “one of the strongest and one of the oldest markets for Ethiopian Airlines”.
“We have been connecting the great Chinese nation with the entire continent of African for almost half a century and it is our growth strategy,” the airline said, adding that it would continue operating in the five cities in compliance with international aviation and health guidelines.
Aside from seeking to shore up revenues, analysts noted that the airline was under tight state control, and Ethiopia would be reluctant to do anything that might harm its strong bilateral ties with China.
Ethiopia is among the nations on the continent with the highest number of Chinese immigrants. Most of them are workers involved in the construction of infrastructure projects including ports, railways, dams, bridges and malls. Those projects have been financed with billions of dollars in loans from China – Ethiopia is reportedly among the biggest recipients of Chinese lending in Africa.
Last year, China was forced to restructure Ethiopia’s debt after the latter edged closer to defaulting on a loan from Beijing for its standard gauge railway.
Chinese hotel workers arrested in Kenya after caning video prompts demands for action
14 Feb 2020
Ethiopia, Algeria, Angola, Nigeria and Zambia together accounted for nearly 60 per cent of all Chinese workers on the continent at the end of 2017, according to a study by Johns Hopkins University.
Ethiopia is also a major recipient of direct foreign investment from China.
The authorities suspect the current outbreak in South Korea originated in Cheongdo, pointing out that a large number of sect followers attended a funeral of the founder’s brother from 31 January to 2 February.
On Friday, a second person who contracted the coronavirus died.
The victim was a woman in her 50s. She died in the south-western city of Busan after being transferred there from a hospital in a nearby country, according to Yonhap news agency.
Reports say she had earlier been a patient at the same mental hospital in Cheongdo as the country’s first victim – an elderly man. Another 15 patients there have also tested positive.
On Thursday, 53 new cases were reported. South Korea now has a total of 204 cases making it the largest cluster outside mainland China and the cruise ship docked off Japan.
The new virus, which originated last year in Hubei province in China, causes a respiratory disease called Covid-19.
What measures are being taken?
From the 100 new cases reported on Friday, 86 were in Daegu, a city 300km (186 miles) south-east of the capital Seoul, and nearly all of those were from a cluster involving the religious sect.
Image copyright AFPImage caption South Korea is trying hard to stop the local spread of the new coronavirus
Reacting to the quickly deteriorating situation, the government promised swift measures to prevent further spread of the virus.
“It is urgent to find people who have contacted infected people and cure patients,” PM Chung said, according to Yonhap.
He said the government was readying resources like sickbeds, medical equipment and health workers and warned the virus was now spreading locally.
“The government has so far focused on curbing infections coming from outside the country. From now on, the government will further prioritise preventing the virus from spreading locally.”
Health Minister Park Neung-hoo said authorities would allow hospitals to isolate respiratory patients from others in an effort to prevent any spread within medical institutions.
He also said that all pneumonia patients in Daegu hospitals would be checked for the virus.
What happened in Daegu?
The city’s biggest cluster appears to be at a branch of a religious sect which calls itself the Shincheonji Church of Jesus, Temple of the Tabernacle of the Testimony.
South Korean health officials believe these infections are linked to a 61-year-old woman who tested positive for the virus earlier this week.
Image copyright AFP/GETTY IMAGESImage caption Workers have been disinfecting the streets of Daegu, South Korea’s fourth-largest city
The Shincheonji, which has been accused of being a cult, said it had now shut down its Daegu branch and that services in other regions would be held online or individually at home.
As of Friday, more than 400 members of the church were showing symptoms of the disease, though tests were still ongoing, the city mayor said.
Can we answer your question on the coronavirus?
Here’s what others have been asking
Once you’ve had coronavirus, will you be immune?
Could the coronavirus become a pandemic?
Is the coronavirus worse than flu or Sars?
Daegu is the country’s fourth-largest city, with a population of 2.5 million people.
Residents are now being asked to remain at home after authorities described the church cluster as “super-spreading event”.
Hand sanitizers and warning signs
By Hyung Eun Kim, BBC Korean Service, Seoul
Many people in South Korea are wearing masks on a daily basis.
Hand sanitizers have been placed at public transport stops and building entrances.
Warning government signs are everywhere. They say: “Three ways to prevent further infection: wear a mask at all times; wash your hands properly with soap for more than 30 seconds; and cover yourself when coughing.”
Image copyright EPAImage caption New norm: Mask-wearing crowd in Seoul
Koreans have also developed several apps and websites that tell you how much risk you face where you are. They show where the infected people are within a 10km radius.
“I can’t miss work, what I can do is minimise contact with others and stay at home during the weekend,” Seung-hye Lim, a Seoul resident, told the BBC.
“I do wonder if we reacted too laxly initially or if it really is because of the specific service practices of the Shincheonji sect.”
So-young Sung, a mother of two in Seoul, told the BBC: “It feels like my daily life is collapsing.”
She said she was struggling to find pharmacies that had masks.
She added that checking coronavirus-related alarms from her children’s schools and kindergartens was now a daily routine for her.
What about China and elsewhere?
The latest figures from China put the death toll from the disease at 2,236 people and total infections at more than 75,000.
The virus has now hit the country’s prison system, with more than 500 inmates confirmed infected.
Senior officials have already been sacked for mishandling management of the outbreak.
The virus has also spread around the globe with more than 1,000 cases and several deaths in the rest of Asia, in Europe, the Middle East, the US and Africa.
On Friday, Iran confirmed 13 new cases, saying that two of those infected had died.
Health ministry official Minou Mohrez was quoted by the state-run Iran news agency as saying the coronavirus has spread to several cities, including the capital Tehran.
South Korea is now the worst affected country after mainland China and the more than 600 infections on a cruise ship docked in Japan.
Media caption Coronavirus: Quarantined passengers released from Japan ship
Passengers of the Diamond Princess who have tested negative continue to disembark the ship in Yokohama after more than 14 days quarantined on board.
More than 150 Australian passengers have been evacuated from the ship and have already arrived in Darwin, where they will begin two more weeks of quarantine.
Australian officials said on Friday that six people had reported feeling unwell on arrival in Darwin and were immediately tested.
Two of those people tested positive despite having received negative tests before leaving Japan.
The first batch of people from Hong Kong have also flown back to the city, where they will similarly be quarantined.
The measures China has taken to stop the spread of the coronavirus are starting to have an impact, Mi Feng, a spokesman at the National Health Commission, said on Sunday.
In other developments:
The number of people who have tested positive on the Diamond Princess cruise ship, which is being held in quarantine in Japan, has risen to 355. The US and Canada are sending planes to evacuate their citizens
A Chinese tourist has died in France – the first fatality outside Asia
An 83-year-old American woman has tested positive after disembarking another cruise ship that was turned away by a number of countries before being allowed to dock in Cambodia
In the UK, all but one of nine people being treated have been discharged from hospital
On Saturday, World Health Organization (WHO) head Tedros Adhanom Ghebreyesus praised Beijing’s response to the outbreak.
“China has bought the world time. We don’t know how much time,” he said. “We’re encouraged that outside China, we have not yet seen widespread community transmission.”
How is China coping?
Tens of millions of Chinese still face heavy restrictions on their day-to-day life as part of the government’s efforts to halt the spread of the disease, which causes a disease named Covid-19.
Much of the response has focused on the hard-hit province of Hubei and its capital Wuhan, where the outbreak began. The city is all but sealed off from the rest of the country.
Foreign Minister Wang Yi said that along with a drop in infections within Hubei there had also been a rapid increase in the number of people who had recovered.
China’s central bank will also disinfect and store used banknotes before recirculating them in a bid to stop the virus spreading.
Media caption Medics in Wuhan resort to shaving their heads in a bid to prevent cross-infection of the coronavirus
In another development Chinese state media published a speech from earlier this month in which Chinese President Xi Jinping said he said he had given instructions on 7 January on containing the outbreak.
At the time, local officials in the city of Wuhan were downplaying the severity of the epidemic.
This would suggest senior leaders were aware of the potential dangers of the virus before the information was made public.
With the government facing criticism for its handling of the outbreak, analysts suggest the disclosure is an attempt to show the party leadership acted decisively from the start.
Cathay Pacific is latest to wield axe, while Taiwan’s new restrictions on visitors from Hong Kong is another blow
More cancellations expected in the coming days as spread of deadly virus continues
The air industry in Hong Kong and beyond has been thrown into disarray by the coronavirus outbreak. Photo: Reuters
Hundreds more Hong Kong flights are set to be dropped as the floodgates open on airlines cancelling services during the city’s fight against the coronavirus.
Carriers based in Asia, Australia, South Africa and Middle East revealed on Friday morning and the previous night they would cut all or some of their flights to the city.
Cathay Pacific is the latest to wield the axe, announcing on Friday afternoon new suspensions of major Hong Kong routes to London, New York and across mainland China because of the virus.
Flights running on the busy route between Hong Kong and Taiwan’s capital Taipei are subject to major cuts. Photo: Shutterstock
The contagion, which started in the central Chinese city of Wuhan, has infected more than 31,400 people, mostly in mainland China, killing more than 635. In Hong Kong, 24 people have been infected, one of those fatally, as of Friday afternoon.
Passengers abandoning travel plans en masse have been compounded by the introduction of entry restrictions across the world against recent visitors to mainland China, some targeting those who had been to Hong Kong.
Destinations suspended by Cathay Pacific until March 28 include London Gatwick, Rome, Washington DC, Newark, Male, Davao, Clark, Jeju and Taichung.
All mainland cities with the exception of Beijing, Shanghai, Chengdu and Xiamen would also be dropped over that period. The company said the decision was made “in view of the novel coronavirus outbreak and the subsequent drop in market demand”.
Hong Kong airport to segregate all flights to and from mainland China
7 Feb 2020
It followed Cathay Pacific Group revealing earlier this week there would be a 30 per cent reduction of flights across its worldwide schedule, as well as a 90% cut of mainland flights.
Budget carrier HK Express, controlled by Cathay, said on Thursday it would scrap 82 flights between February 12 and March 26, mostly to destinations such as Seoul and Osaka.
Hong Kong Airlines (HKA) at the same time revealed it would gradually impose even deeper cuts to flights it operated in mainland China and the rest of Asia until March 28.
The ailing carrier will suspend 10 routes and reduce flights on a further 15, amounting to an estimated 128 flights a week being axed. HKA has already cut 214 mainland Chinese flights between January 30 until February 11.
As Taiwan’s new restrictions took effect on Friday – ordering the home or hotel quarantine of anyone entering the self-ruled island who had visited Hong Kong or Macau within the previous 14 days – carriers based there slashed their schedules.
China Airlines would go from running 18 daily Hong Kong flights to just two from next week until March 28, according to Airline Route data published on Thursday.
Eva Air would switch from more than 11 daily flights to fewer than four a day for the rest of the month.
As health professionals treat coronavirus patients, global search for cures and vaccines accelerates
Eighty flights operate between Hong Kong and Taipei every week, a journey that regularly tops tables ranking the world’s busiest. But under the cuts to come more than half have already been scrapped.
Outside Asia, two airlines on Thursday cut ties with Hong Kong. The struggling Virgin Australia blamed the coronavirus and the anti-government protests that have gripped Hong Kong since June.
It concluded that “current circumstances demonstrate that Hong Kong is no longer a commercially viable route”.
The near-bankrupt South African Airways (SAA) has cancelled its route from Johannesburg amid a wholesale restructuring of the state-owned business. SAA had suspended flying to Hong Kong after November 21 last year amid the city’s civil unrest.
Hong Kong Airlines to axe 400 jobs as coronavirus adds to carrier’s cash woes
7 Feb 2020
Meanwhile, American Airlines said on Thursday it would restart flights between Dallas Fort Worth and Hong Kong on February 21, while Hong Kong’s Airport Authority extended the cancellation of its Los Angeles flight to the city until March 27.
The US carrier warned its schedules were subject to an ongoing “review”. Currently there is no US carrier flying to Hong Kong International Airport after United Airlines also withdrew all services until February 20.
Among the Middle East carriers, Emirates was halving its four daily Airbus A380 flights to Hong Kong from next week until March 28. Etihad is also making minor adjustments, Airline Route data showed on Thursday.
Hong Kong and Thailand are likely to suffer most from the novel coronavirus outbreak because of close their economic ties with China
A drop in Chinese tourist arrivals and imports, as well as supply chain disruptions are likely to weigh on regional economy
Thailand’s economy could be one of the most affected by the coronavirus outbreak due to its close ties with China, especially in the tourism sector. Photo: Bloomberg
Hong Kong and Thailand are likely to be the hardest hit Asian economies outside mainland China from the deadly coronavirus outbreak, according to analysts.
The 2019-nCoV, which had claimed the lives of nearly 640 people and infected more than 31,000 in mainland China by Friday, is viewed as even more damaging than the severe acute respiratory syndrome (Sars) epidemic in 2002-2003 because of prolonged factory closures and transport restrictions that have locked down many Chinese cities.
China has become more closely integrated with the rest of Asia since the Sars outbreak, meaning the disruptions to China’s industrial and export sectors, combined with a sharp drop in economic activity in the first quarter, will have significant repercussions across the region, particularly through tourism and trade, analysts said.
“A collapse in tourism arrivals from China will be the first shock wave for the rest of the region,” said Gareth Leather, senior Asia economist at Capital Economics. “Factory closures in China will affect the rest of the region by disrupting regional supply chains.”
A collapse in tourism arrivals from China will be the first shock wave for the rest of the region. Factory closures in China will affect the rest of the region by disrupting regional supply chainsGareth Leather
Hong Kong would likely be the most affected because of its status as a trade hub, its tight linkages to the Chinese economy and the sharp decline in tourism expenditure that is expected, UBS economist William Deng noted.
“Due to the risk of infection, domestic households significantly reduced such activities as dining out, shopping and entertainment,” Deng wrote in a recent note. He cut Hong Kong’s gross domestic product (GDP) growth forecast to minus 1.8 per cent for 2020, against his previous projection of a 0.5 per cent drop.
A community outbreak spread by human-to-human transmission has started in the city, said Professor Yuen Kwok-yung, a top microbiologist at the University of Hong Kong on Wednesday.
Thailand could be the next most affected due to its dependence on Chinese tourism. Outside Hong Kong and Macau, the country has the highest exposure to China as a share of GDP in the region.
China locks down Hangzhou, mega-city far from epicentre of coronavirus outbreak
ANZ Bank’s head of Asia research Khoon Goh said that the novel coronavirus could knock US$760 million from Thailand’s economy in the first quarter. Hong Kong could could see losses of US$1.4 billion. Travel services as a share of GDP were 11.2 per cent in Thailand and 9.4 per cent in Hong Kong.
“The Thai economy would expand at a slower rate in 2020 than previously forecast and much further below its potential due to the outbreak of coronavirus,” Bank of Thailand said in a statement after it slashed interest rates to a record low on Wednesday.
South Korean and Taiwanese businesses will also have negative spillover effects from the coronavirus outbreak because of supply chain disruptions and weaker consumer sentiment inside and outside China, analysts said.
South Korean car and tech companies that rely on parts from Chinese suppliers are exposed to potential production disruptions stemming from factory closures and the evacuation of Korean workers from China-based production lines, said Sean Hwang, corporate finance group analyst at Moody’s Investors Group.
Coronavirus: here are the places and airlines restricting travel to China
For instance, Hyundai Motor Company closed some if its South Korea-based plants on February 4 because of a shortage of wiring harnesses.
Korean customers are also limiting their trips to bricks-and-mortar retail stores such as E Mart and Lotte Shopping to avoid crowds amid the outbreak, potentially leading to a significant decline in revenue and earnings, Hwang said.
Although Singapore is not as closely tied to China as Hong Kong, the city state could still see a knock-on effect from China’s expected near-term downturn, as its economy has become much more integrated with the world’s second largest economy since the Sars outbreak.
The number of Chinese tourists rose six times from 568,000 in 2003 to 3.4 million in 2018, said Irvin Seah, senior economist at DBS Bank.
Coronavirus outbreak: global businesses shut down operations in China
“We expect a decline of about 1 million tourists or about SGD1 billion (US$722 million) of lost tourism receipts for every three months of travel ban,” Seah said. “We have lowered our full-year GDP growth forecast to 0.9 per cent, down from 1.4 per cent previously.”
Taiwan has banned Chinese visitors as well as foreigners who have visited Hong Kong and Macau from entering the island due the coronavirus. International cruise ships are also unable to dock on the island, which will lead to at least 112 liner visits cancelled by the end of March, affecting around 144,000 passengers, said the Taiwan International Ports Corporation.
Capital Economics’ Leather said the economic impact on Taiwan from 2019-nCoV could stand out from the rest of Asia, as it had the most exposure in value-added, intermediate exports to China – 18 per cent of GDP.
20 coronavirus infections confirmed on cruise ship in Japan, as thousands remain under quarantine
Elsewhere, Malaysia’s commodity driven trade growth this year has been threatened by the almost 20 per cent fall in crude oil prices, a decline triggered by fears that the coronavirus outbreak would dampen China’s imports. Malaysia’s purchasing managers’ index, a survey of manufacturers, dropped to 48.8 in January from 50.0 the prior month prior, data released this week showed. The drop was blamed on slowing output, with new orders dropping the most since September amid a decline in exports.
“The Bank Negara Malaysia’s surprising policy rate cut at the last meeting on 22 January, just around the time the coronavirus started to dominate headlines, tells us that the central bank is ahead of the curve in recognising the risk,” said Prakash Sakpal, Asia economist at ING Bank said.
India and Indonesia will be the least affected given the small contribution the tourism sector makes to their economies, and the low share of visitors from China, ANZ’s Goh said.
Image copyright GETTY IMAGESImage caption A model displays a car at the annual Indian Auto Expo
Chinese attendees are not welcome at India’s Auto Expo next week due to concerns about the coronavirus.
Chinese guests are prevented from attending the show because of “government policy” an Indian Society of Automobile Manufacturers (SIAM) spokeswoman said.
Yet Chinese cars will be on display.
Other events across Asia will be missing the large delegations that usually come from Chinese firms because of travel restrictions.
Changing car markets
India and China have much at stake in spurring domestic car sales as well as exports, making such industry events vital to drum up business.
New Indian car sales fell 16% last year and China, the world’s largest car market, saw an 8% dip as both markets saw increased turnover in used cars. However there is interest in newer models in the electric vehicle segment, according to Chinese market consultancy LMC Automotive and SIAM figures.
India’s Tata Motors, owner of the Land Rover and Jaguar brands, has developed electric car models for sale at home and abroad, while China’s SAIC Motor and Great Wall Motor also offer electric vehicles for the domestic and export markets. That makes auto shows like the one in India next week important venues to showcase the newest models.
Ripple effect
With hotels and conference fees paid in advance and lunch and dinner meetings arranged months earlier, missing a big industry show has a major ripple effect on economic activity. Events like the Auto Expo in suburban New Delhi, or the Singapore air show due to take place next week draw thousands of out-of-town guests.
In China, the conference circuit has come to a standstill with over 20,000 infections and more than 420 people dead as the virus spreads from the epicentre of the city of Wuhan.
In the case of the Singapore Airshow organisers have faced cancellations by vendors from China, including aircraft maker Comac, and reduced attendance by companies from elsewhere in the world concerned about the spread of the virus outside of China. Singapore has reported 24 cases. India to date has seen three coronavirus cases.
To mitigate the impact, both events have highlighted plans to screen throngs of guests for fever and ensure thorough sanitation measures as well as access to medical care to ensure they can carry on even at reduced attendance.
Japanese Prime Minister Shinzo Abe meets with Chinese State Councilor and Foreign Minister Wang Yi in Tokyo, Japan, Nov. 25, 2019. (Xinhua/Du Xiaoyi)
TOKYO, Nov. 25 (Xinhua) — Japanese Prime Minister Shinzo Abe and Chinese State Councilor and Foreign Minister Wang Yi on Monday agreed that both sides should work together to further improve bilateral ties and strengthen people-to-people exchanges.
Japan and China have witnessed frequent high-level exchanges and positive progress in the improvement of bilateral relations recently, said Abe, adding that the Japanese side is eagerly looking forward to Chinese President Xi Jinping’s state visit next spring and believes that it will be a major opportunity for promoting bilateral relations in the new era.
A stable Japan-China relationship is the cornerstone of peace and prosperity in Asia, and is also crucial to addressing current global challenges. Japan is ready to work with China to usher in a new future of bilateral relations, he said.
Japan welcomes the launch of the high-level consultation mechanism on people-to-people exchanges between the two countries and stands ready to work with China to continuously boost the affinity between the two peoples and properly handle sensitive differences so as to create a favorable atmosphere and conditions for the improvement and development of bilateral relations, he added.
Abe also said he is looking forward to further in-depth communication with Chinese leaders on bilateral ties during his visit to China next month to attend the China-Japan-ROK (Republic of Korea) leaders’ meeting.
Wang, for his part, said that with the political guidance of the two leaders and joint efforts of both sides, China-Japan relations have returned to the right track and have seen a sound momentum of improvement and development. The top leaders of the two countries had a successful meeting in Osaka in June and reached important consensus on building bilateral relations that meet the requirements of the new era.
The China-Japan relations have gone through twists and turns and the present situation has not come easily and should be doubly cherished, Wang said.
The two sides should push for continuous improvement and development of China-Japan relations from a longer-term and broader perspective, he said.
He called on the Japanese side to meet China halfway, take more positive actions, properly manage and handle differences so as to create a favorable atmosphere and conditions for the proposed major political and diplomatic agenda of the two countries.
The improvement and development of China-Japan relations not only conform to the interests of the two countries and peoples but also has great positive significance to regional peace and stability, injecting stability into the current world situation which is full of uncertainty, said Wang.
The Chinese side welcomes Abe to attend the China-Japan-ROK leaders’ meeting in China next month. China is willing to work with Japan to give full play to the role of the high-level consultation mechanism on people-to-people exchanges, usher in a new era of exchanges between our peoples, localities and youth, and create a brighter future for bilateral relations, he said.
It took China less than 70 years to emerge from isolation and become one of the world’s greatest economic powers.
As the country celebrates the anniversary of the founding of the People’s Republic of China, we look back on how its transformation spread unprecedented wealth – and deepened inequality – across the Asian giant.
“When the Communist Party came into control of China it was very, very poor,” says DBS chief China economist Chris Leung.
“There were no trading partners, no diplomatic relationships, they were relying on self-sufficiency.”
Over the past 40 years, China has introduced a series of landmark market reforms to open up trade routes and investment flows, ultimately pulling hundreds of millions of people out of poverty.
The 1950s had seen one of the biggest human disasters of the 20th Century. The Great Leap Forward was Mao Zedong’s attempt to rapidly industrialise China’s peasant economy, but it failed and 10-40 million people died between 1959-1961 – the most costly famine in human history.
This was followed by the economic disruption of the Cultural Revolution in the 1960s, a campaign which Mao launched to rid the Communist party of his rivals, but which ended up destroying much of the country’s social fabric.
‘Workshop of the world’
Yet after Mao’s death in 1976, reforms spearheaded by Deng Xiaoping began to reshape the economy. Peasants were granted rights to farm their own plots, improving living standards and easing food shortages.
The door was opened to foreign investment as the US and China re-established diplomatic ties in 1979. Eager to take advantage of cheap labour and low rent costs, money poured in.
“From the end of the 1970s onwards we’ve seen what is easily the most impressive economic miracle of any economy in history,” says David Mann, global chief economist at Standard Chartered Bank.
Through the 1990s, China began to clock rapid growth rates and joining the World Trade Organization in 2001 gave it another jolt. Trade barriers and tariffs with other countries were lowered and soon Chinese goods were everywhere.
“It became the workshop of the world,” Mr Mann says.
Take these figures from the London School of Economics: in 1978, exports were $10bn (£8.1bn), less than 1% of world trade.
By 1985, they hit $25bn and a little under two decades later exports valued $4.3trn, making China the world’s largest trading nation in goods.
Poverty rates tumble
The economic reforms improved the fortunes of hundreds of millions of Chinese people.
The World Bank says more than 850 million people been lifted out of poverty, and the country is on track to eliminate absolute poverty by 2020.
At the same time, education rates have surged. Standard Chartered projects that by 2030, around 27% of China’s workforce will have a university education – that’s about the same as Germany today.
Rising inequality
Still, the fruits of economic success haven’t spread evenly across China’s population of 1.3 billion people.
Examples of extreme wealth and a rising middle class exist alongside poor rural communities, and a low skilled, ageing workforce. Inequality has deepened, largely along rural and urban divides.
“The entire economy is not advanced, there’s huge divergences between the different parts,” Mr Mann says.
The World Bank says China’s income per person is still that of a developing country, and less than one quarter of the average of advanced economies.
China’s average annual income is nearly $10,000, according to DBS, compared to around $62,000 in the US.
Slower growth
Now, China is shifting to an era of slower growth.
For years it has pushed to wean its dependence off exports and toward consumption-led growth. New challenges have emerged including softer global demand for its goods and a long-running trade war with the US. The pressures of demographic shifts and an ageing population also cloud the country’s economic outlook.
Still, even if the rate of growth in China eases to between 5% and 6%, the country will still be the most powerful engine of world economic growth.
“At that pace China will still be 35% of global growth, which is the biggest single contributor of any country, three times more important to global growth than the US,” Mr Mann says.
The next economic frontier
China is also carving out a new front in global economic development. The country’s next chapter in nation-building is unfolding through a wave of funding in the massive global infrastructure project, the Belt and Road Initiative.
The so-called new Silk Road aims to connect almost half the world’s populations and one-fifth of global GDP, setting up trade and investment links that stretch across the world.
CHINDIA ALERT: You'll be living in their world, very soon 