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.
The United States suffered the most from the pandemic, with 1,305,199 cases and a death toll of 78,469.
NEW YORK, May 9 (Xinhua) — Global confirmed COVID-19 cases topped 4 million on Saturday, reaching 4,004,224 as of 4:32 p.m. (2032 GMT), according to the Center for Systems Science and Engineering at Johns Hopkins University.
According to the CSSE, a total of 277,860 people worldwide have died of the disease.
Police officers walk past closed retail stores along Broadway in New York, the United States, on May 8, 2020. (Photo by Michael Nagle/Xinhua)
The United States suffered the most from the pandemic, with 1,305,199 cases and a death toll of 78,469. Countries with over 150,000 cases included Spain, Italy, the United Kingdom, Russia, France and Germany, according to the CSSE data.
Beijing’s Chaoyang district remains the last high-risk area in China, with virus preventive measures continuing to impact on travel and shopping plans
China faces the dilemma of preventing a re-emerge of the pandemic, while also pushing to get its economy back to normal
China’s continued pandemic prevention measures, coupled with still hesitant consumer demand, will inevitably lead to persistent limitations on the nation’s economic recovery, analysts said. Photo: Bloomberg
After nearly three months of being quarantined by herself in Beijing, Mary Zhao was looking forward to the upcoming long weekend at the start of May to be able to finally reunite with her parents.
But Zhao was forced to abandon her plan for the Labour Day holidays as Beijing’s upmarket Chaoyang district, where she lives, remains the only high-risk zone for coronavirus in the entire country.
If she travelled the five hours by car, or two hours via bullet train, to the neighbouring Hebei province, she would first have to undergo a 14-day quarantine before seeing her parents. Her parents would also have the same two week quarantine to look forward to once they returned home if they came to visit their daughter in Beijing.
These strict controls to prevent a re-emergence of the coronavirus outbreak are making a return to normal life impossible for many, and mean the final economic and social cost
from China’s draconian preventive measures could be much larger than expected.
Wuhan declares ‘victory’ as central Chinese city’s last Covid-19 patients leave hospital
It underscores the dilemma facing China’s leaders on how to balance the need to
and to avoid a fresh outbreak. On the surface, China may be able to declare victory as even Wuhan, the city where the virus was first detected, announced that the last Covid-19 patient had left hospital on Sunday. But fears of a renewed outbreak have kept the country’s cinemas and most schools closed, with travel between provinces discouraged.
China’s national borders also remain largely closed, with flights being cut to a minimum, and a mandatory 14-day quarantine for every arrival. In the number of places where new cases have been reported, quarantine requirements have been tightened, including Harbin and a few other cities near the border with Russia.
Chaoyang, the home to one of Beijing’s main business districts and most foreign embassies, changed its risk rating to high from low in the middle of April after three new cases were reported, dealing a fresh blow to the district’s
and forcing many of the 3.5 million residents to cancel their travel plans.
On the outskirts of Beijing, near Beijing Capital International Airport, returning migrant workers to Picun village were ordered to stop at entrance and could only be escorted inside by their landlord, with many villages and residential compounds remaining closed to outsiders.
In the high-end shopping district of Guomao, some shops also remain closed as there are few potential customers, while over in the popular Sanlitun area, metal barriers restrict access and temperature checkpoints are still required.
The landmark Apple Store in the popular Taikoo shopping centre is open, but with limited customers allowed inside, there are long queues outside. Customers are required to scan a QR code to check their movements over the last few days before entering.
Coronavirus: More schools reopen in China for students preparing for university entrance exams
“Why do I have to spend 20 minutes just to get into the Apple Store? The sun has almost melted me down,” one visitor complained to the security guards at the front of the shop.
China’s continued pandemic prevention measures, coupled with still hesitant consumer demand, will inevitably lead to persistent limitations on the nation’s economic recovery, analysts said.
Ernai Cui, an economist at research firm Gavekal Dragonomics, said on Monday that China’s cautious approach to lifting restrictions “points to a weak second quarter for consumer services”, adding additional pressure to the economic recovery.Mao Zhenhua, a researcher at the China Institute of Economics at Renmin University, said China’s preventive measures will inevitably be a drag on production, employment and exports.
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.
‘Ghosts’ deployed to scare Indonesians into staying home to slow spread of the coronavirus
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.”
BEIJING (Reuters) – For Zhang Yu, who runs a cafe in one of Beijing’s top tourist spots, business has never been so bad.
To contain the spread of the coronavirus, bars and cafes in the Wudaoying hutong – a top Lonely Planet destination built around a narrow lane – are permitted to provide take-away services only. Non-residents must show proof they have an appointment to enter the area.
Added to which, tourism has plummeted.
“Don’t mention it! This is supposed to be the peak season,” said Zhang, who has run her cafe for five years. “But there are almost no customers as they (authorities) don’t want to have people hanging around here.”
While China’s manufacturing and retail sectors are starting to get back to work as the pace of new infections slows sharply, tourism sites in Beijing remain a shadow of their former and bustling self.
China’s capital city has maintained the highest level of emergency response to the outbreak, so tourist attractions like the Forbidden City remain closed. A 14-day quarantine for new arrivals has stifled travel.
As a result, small business owners running restaurants, souvenir shops and tourism agencies are struggling.
Only a little over 20% of tourism-related businesses in Beijing had resumed operation as of the three-day Qingming national holiday in early April, a survey by on-demand delivery service giant Meituan Dianping showed.
HANGING ON
The only people present in Wudaoying on a recent afternoon were a few elderly residents sitting outside to enjoy the spring sunshine. A cat made its way lazily through empty rooftop bars.
“We used to see more customers in one hour in pre-virus days than we see in a whole day right now,” said a worker at a sandwich restaurant in Wudaoying.
In another popular area, Khazzy, a 32-year-old doctoral student who opened a restaurant last October, has had only four customers all day.
“There are almost no tourists coming to Beijing and the remaining locals have concerns about eating out,” Khazzy said as sunset approached.
Khazzy said he has let five of his 13 staff go and has no idea how long he can stay afloat financially even though his landlord has agreed to waive one month’s rent on the property in Qianmen, near Beijing’s Tiananmen Square.
More than half of the shops in Qianmen remain closed. The manager of a state-backed noodle restaurant said most of the closed stores are privately owned small businesses that can’t secure enough business to support their daily operations.
She said revenues at the noodle restaurant have plunged more than 80%, but staff salaries have not been cut.
Zhang, the cafe owner in Wudaoying, reckoned small businesses could hold on for the next three months.
“Doctors and nurses are people who saved me from cancer and gave me strength in the darkest time. I need to return the favour,” says Li Yan, a food delivery rider based in Beijing.
Mr Li was diagnosed with lymph cancer in 2003, when he was just 17 years old. He recovered from the disease and has been full of gratitude ever since for the medical workers who nursed him back to health. With China in a national lockdown, food delivery firms found themselves in hot demand providing meals for residents stuck at home to prevent the spread of the coronavirus.
As a delivery rider for Meituan, one of China’s biggest food delivery firms, Mr Li saw an opportunity to repay the medical professionals he admires by providing them with food and drinks as they worked tirelessly on patients across the city. “Given my past experience, I felt I needed to do something for them in return during the virus outbreak,” he adds.
Beijing is a city of 21 million residents, and Mr Li covers its Tongzhou district, where there are a handful of hospitals with fever clinics, one of which is a designated hospital for Covid-19 treatment. “Many might have concerns delivering for the hospital, but I’ve chosen to deliver for them more often. I just think of the local residents and medical workers who need us. I can’t leave them being hungry. It’s not for money.”
Before the outbreak in China, he delivered more than 50 orders on an average day. But during the first ten days after the coronavirus outbreak in late January, the number of orders dropped to less than 20, as some restaurants were closed. The outbreak also coincided with the Chinese New Year period which is normally a low season.
“By mid-February when the situation was brought more under control, and people’s concerns and fears gradually began to ease, orders started to be restored. I can deliver over 40 orders a day now.”
Image copyright LI YAN
During this time, Meituan brought in a contactless delivery option which allowed food to be dropped off at designated points to avoid contact between customers and riders. “When I called customers to explain, some initially didn’t understand and wanted to cancel the order. But gradually people grew more understanding and began to welcome the contactless approach.”
Empty streets
China was in lockdown for more than two months, although restrictions are now beginning to be lifted. It will still take time before a sense of normalcy returns.
“I remember when the coronavirus first broke out, it was hazy for a few days in Beijing. Streets were empty and stores were closed. An ambulance or a delivery rider occasionally drove by. It felt like I was living in a different world.”
Mr Li says restaurants have started to re-open and people have begun coming back to work in the office since mid-February. Orders are still lower than normal but are improving.
“I miss the hustling Beijing which used to filled with traffic, the days when I could smell car exhaust when I stop at crossroads, the times when I had to walk all the way up to the 6th floor to deliver food, and even times when I was late for a delivery.”
Image copyright LI YAN
When the virus first broke out, face masks and alcohol disinfectant were the most ordered items along with supermarket groceries. “Grains, rice, cooking oil, vegetables, fruits, and solid, packaged food that lasts long. Orders often came in big sizes and transaction prices at around 200 yuan [£23; $28] to 300 yuan on one order.”
Being a food delivery rider, Mr Li feels he can not only give back to the medical community but to the city’s vulnerable too.
“I once received an order that came with a note saying the customer is a 82-year-old who lives alone and couldn’t get downstairs to pick up the food so the rider needs to enter the residential community and deliver food to the door. I had to spend some time communicating with security and finally was allowed in. The door was open when I arrived, and I put the bowl of wontons [a type of dumpling] on the table.”
Tips have increased from happy customers during the pandemic as a result. “Many more send me thank-you notes in the Meituan app and tell me to take care.”
Image copyright LI YAN
Keeping clean
Mr Li has a new routine now which involves lots of disinfecting and temperature checks. “I get my temperature checked dozens of times everyday now, before entering shopping malls, at restaurants, and returning home to the residential compound I live in. I also bring with me disinfectant sprays, a towel in my scooter and use disposable gloves when delivering to areas with reported confirmed cases.”
While he’s providing a vital service, is Mr Li worried about the risk of infection? “I did have worries when the virus spread and was at its worst time here but I feel like I’ve already been there, given what I went through in the fight against cancer.
“I’ve learnt to take things easy, look at the bright side of things and always seek strength in a dark time. As long as I take sufficient precautions, masks, gloves, disinfectants and everything, and follow advice from disease control experts, I think the possibility of getting the virus is pretty low.”
And with a seven-month pregnant wife at home, Mr Li is looking forward to happier times.
SHANGHAI (Reuters) – China’s smartphone sales may plunge by as much as 50% in the first quarter, as many retail shops have closed for an extended period and production has yet to fully resume due to the fast spread of a new coronavirus, according to research reports.
The virus outbreak, which has killed more than 900 people and roiled China’s manufacturing industry, comes as top smartphone vendors such as Huawei had hoped China’s 5G rollout plans this year would help the world’s biggest smartphone market rebound after years of falling sales.
“Vendors’ planned product launches will be canceled or delayed, given that large public events are not allowed in China,” research firm Canalys said in a note last week.
“It will take time for vendors to change their product launch roadmaps in China, which is likely to dampen 5G shipments.”
Canalys expects China’s smartphone shipments to halve in the first quarter from a year ago, while IDC, another research firm that tracks the tech sector, forecasts a 30% drop.
Apple Inc said last week it is extending its retail store closures in China and has yet to finalise opening dates, as Foxconn, which assembles iPhones, struggles to fully resume factories.
Foxconn received government approval on Monday to resume production at a plant in the city of Zhenghzou, but its major plant in Shenzhen remain unopened.
Huawei, China’s biggest smartphone vendor, said its manufacturing capacity is “running normally” without specifying further. But like many other local peers, Huawei relies heavily on third-party manufacturers for production.
If factories cannot resume production to full capacity on time, this could delay brands’ ability to bring their newest products to market, analysts said.
Xiaomi Corp, Huawei, and Oppo, three of China’s top Android brands, are all expected to announce flagship devices in the first half.
Oppo told Reuters that while the impact of the virus will affect operations at some local factories, “manufacturing capacity can be guaranteed effectively” thanks to its plants overseas.
Xiaomi did not respond to requests for comment.
“The delays in reopening factories and the labour return time will not only affect shipments to stores, it will also affect the product launch times in the mid- and long-term,” Will Wong, an IDC analyst, said.
Globally, smartphone production will decrease by 12% in the March quarter to a five-year low of 275 million units, research firm TrendForce said on Monday. It revised down iPhone production by 10% to 41 million units, while Huawei’s output forecast was cut by 15% to 42.5 million phones.
Samsung Electronics Co, the world’s top smartphone maker, is seen the least affected by the virus outbreak as its main production base is in Vietnam, the report said, lowering its production forecasts by just 3% to 71.5 million units.
Image copyright WEIBOImage caption She posted pictures of her meal on social media platform WeChat
The Chinese embassy in Paris has tracked down a woman from Wuhan who said she took tablets to pass airport health checks.
The woman boasted on social media that she had been suffering from a fever, but managed to reduce her symptoms with medicine.
She later posted pictures showing herself dining at what she claimed was a Michelin-starred restaurant in Lyon.
The embassy has now confirmed that her symptoms are under control.
The woman left Wuhan – where the new coronavirus emerged late last year – before flights were suspended, but when thermal scanning was in place.
Since yesterday, public transport has been shut down, with residents told not to leave the city.
At least 25 people with the virus have died. It was first reported to the World Health Organization 31 December.
The virus has spread to countries as far as South Korea, Japan and the US.
Image copyright GETTY IMAGESImage caption People have been thermally scanned when leaving Wuhan, and arriving at their destination. This picture was taken in Indonesia on Thursday
The woman detailed her journey to Lyon on social media site WeChat.
“Finally I can have a good meal, I feel like I’ve been starving for two days. When you are in a gourmet city of course you have to eat Michelin [food],” she wrote.
“Just before I left, I had a low fever and cough. I was scared to death and rushed to eat [fever-reducing] medicine. I kept on checking my temperature. Luckily I managed to get it down and my exit was smooth.”
She also posted pictures of the meal she enjoyed. It is not clear exactly when she arrived.
Her post quickly went viral and she was widely criticised by other social media users.
The Chinese embassy in Paris said it had received calls and emails about the woman. It said she had taken antipyretics, and that it attached “great importance” to the case.
The embassy said it contacted her on Wednesday evening and asked her to refer herself to medical services.
On Thursday, in a new statement, the embassy said the woman’s temperature was under control, and that she had no more fever or cough symptoms.
It added that she did not require “further examinations” at this point.
Media caption Fears over coronavirus in China trigger face mask shortage
China has effectively quarantined nearly 20 million people in Hubei province. Other major cities in China like Beijing and Shanghai are also affected.
Authorities have cancelled all large-scale celebrations in Beijing. Temple fairs are banned, film releases postponed and the Forbidden City will be closed to the public.
All this comes as millions of Chinese people are travelling across the country for Lunar New Year.
Currently known as 2019-nCoV, the virus is understood to be a new strain of coronavirus not previously identified in humans.
Families appeal to city authorities and toy company for help to recover fees already paid for classes
Four outlets shut their doors in aftermath of contract dispute
Families in Shanghai are appealing to authorities for help to recover money paid for lessons at closed Lego Education Learning Centres. Photo: Weibo
Hundreds of Shanghai parents are appealing to Danish toy company Lego for help after four of its authorised learning centres suddenly closed their doors, leaving families tens of thousands of yuan out of pocket.
Shanghai Jixiao Information Science and Technology, which ran three Lego Education Learning Centres in the city, said in an online statement on Monday that it was left with no choice but to close the centres after Lego Education in China ended its agreement with its Chinese partner, Beijing-based Semia.
The closure of the centres – the Ruihong, Jinqiao and Haiwaitan branches – came just weeks after the Lego centre in Nanxiang shut down.
Semia was authorised by Lego Education to operate learning branches across mainland China and authorisation third parties to do as well, according to Shanghai-based Jfdaily.com.
Rachel Wang, a mother of a six-year-old boy, said that in various online forums about 650 families had reported losing a combined 5.2 million yuan (US$742,000) in prepaid classes at the three stores. Another 130 families whose children were enrolled at the Nanxiang store were seeking 900,000 yuan in refunds, she said.
Wang said the parents had appealed to the Shanghai municipal government to pressure Lego to look at the case.
“We are planning to sue the learning centre, and in the meantime we hope Lego Group can pay attention to this case and help us. Many of the parents chose these centres as we saw on Lego’s website they were listed as among the company’s authorised stores,” she said.
“We are angry and very disappointed with Lego.
“It made a lot of money in China because we trusted it.”
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Tao Lina said everything appeared fine when he took his five-year-old daughter to the Haiwaitan centre on Sunday.
“But the next day, we were told that the store had closed. I was so surprised,” Tao said.
“We had never heard of Semia and we were not aware of its existence. We all thought that the learning centres was franchised directly by Lego.”
He said he had paid for 144 classes at the centre and his daughter had attended about 60 of them, each costing 160 yuan. Tao said he hoped his daughter could continue attending the classes – which use Lego products to teach children about subjects such as robotics – but had not been able to contact the centre’s managers.
Shanghai Jixiao said the termination of the Semia-Lego Education agreement had scared off parents, cutting cash flow and forcing it to close the centres.
In its online statement, the company said its troubles started in September, when it received a lawyer’s letter from both Semia and Lego Education.
“It required us to promise not to use the [Lego Education] logo after December 31, 2019 and to stop teaching Lego courses after August of next year,” Shanghai Jixiao said.
On October 11, Lego Education said on WeChat that it had terminated its cooperation with Semia. Most of the 137 Lego learning centres in China would be allowed to use the Lego brand until December 31 and continue teaching Lego courses until July 31 next year.
But after the announcement, many parents sought refunds, causing a cash-flow crisis for the Shanghai company.
Shanghai Jixiao also said that the lawyer’s letter sent in September required all learning centres to sign an agreement absolving Semia of all responsibility.
If it signed the agreement, it would have three months to change the brand and products, which Shanghai Jixiao said was impossible. If it did not sign it, it would have to stop using the Lego brand at once.
Shutting the centres down was the only option after their various efforts, including joint appeals with other mainland learning stores to Lego, visiting Lego headquarters in Denmark and calling Lego’s executives, were unsuccessful, the Shanghai company said.
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It offered two mobile phone numbers for parents to contact them but the phones were powered off on Wednesday and Thursday.
Lego did not respond to a request for comment from the South China Morning Post.
But on Wednesday, Lego said it ended the contract with Semia to improve the company’s learning centres, adding that it had no business relations with the closed stores, Thepaper.cn reported.
A manager at Semia’s franchising department identified only as Wei was quoted by Jfdaily.com as saying that the authorisation contract for the three stores owned by Shanghai Jixiao actually ended between October 2018 and February this year.
“They were waiting for us to renew the authorisation contract with Lego, but we failed to reach an agreement with Lego. So these learning centres lost their authorisation,” she was quoted as saying.
Wei said all the authorised stores operated independently.
“Legally speaking, their problems should be solved by themselves,” she said, adding that she could not contact Shanghai Jixiao’s owner either.
There are 19 Lego Education branches across Shanghai, according to Lego Education’s WeChat account.
Market regulation authorities in Pudong and Huangpu districts had started to look at the case, Jfdaily.com reported.
Hong Kong’s rule of law has been pushed to the “brink of total collapse” after more than five months of protests, police have warned.
The warning came as protesters clashed with police across the city on Tuesday.
At the Chinese University of Hong Kong, police fired tear gas and rubber bullets at protesters who built barricades on the campus.
Earlier in the day, around 1,000 protesters rallied in central Hong Kong during the lunch hour blocking roads
Protesters, wearing office clothes, were seen chanting: “Fight for freedom, stand with Hong Kong!”
The demonstrations come just a day after the territory saw a marked escalation in violence, with police shooting one activist in the torso. A pro-Beijing supporter was set on fire by anti-government protesters.
The protests started in June against a now-withdrawn plan to allow extradition to mainland China, but have since morphed into wider demonstrations, with activists demanding greater democracy and police accountability in Hong Kong.
On Tuesday afternoon, police spokesman Kong Wing-cheung hit out at the protesters, saying they had “countless examples of rioters using random and indiscriminate violence against innocent” people.
“Hong Kong’s rule of law has been pushed to the brink of total collapse as masked rioters recklessly escalate their violence under the hope that they can get away with it,” he told reporters, adding that Monday’s attack on the pro-Beijing supporter was being investigated as attempted murder.
Image copyright AFPImage caption Protesters and office workers were seen blocking roads in Hong Kong’s financial district
Speaking at the same conference, Supt Li Kwai-wah defended the officer’s decision to shoot the protester on Monday.
“We found out that our colleague did not only face threat from one person, instead it was a group of people with an organised plan attempting to steal the gun,” he said.
“In a situation like this, we believe our police are reacting according to the guideline, to protect themselves as well as the people around them.”
Both the protester and the pro-Beijing supporter remain in hospital, with the latter in a critical condition.
What happened on Tuesday?
Clashes erupted at the Chinese University of Hong Kong, with police firing tear gas to disperse students, while at City University there was a standoff between students and riot police which continued into the evening.
Police continued to use tear gas to try to disperse the protesters who responded with bricks and petrol bombs. Hundreds of protesters remain at the Chinese University of Hong Kong.
Image copyright REUTERSImage caption Students at Hong Kong’s Chinese University fought with police throughout the day
Students built roadblocks on streets in and around City University campus to stop police from entering. At one stage, a van used as part of a street barricade was set on fire.
Students at Hong Kong Polytechnic also tried to disrupt traffic near their campus.
In the morning, suspended railway services and road closures had already led to long traffic jams in the early rush hour. At noon, protesters moved into the city’s central business district for a flash mob protest.
Image copyright REUTERSImage caption At Festival Walk shopping mall, a Christmas tree was set on fire
Protests continued to intensify throughout the day. A Christmas tree inside Festival Walk shopping mall was set on fire by protesters while others were seen smashing a glass railing with hammers.
Train stations were closed across the city.
Media caption This Hong Kong protester’s shooting was livestreamed on Facebook
Eight universities have announced they will suspend classes on Wednesday.
Monday’s protests saw 260 people arrested bringing the number to more than 3,000 since the protests began in June.
Students swear they will not surrender
Grace Tsoi, BBC World Service, at the Chinese University of Hong Kong
Image copyright AFPImage caption Hundreds of protesters remain at the university
The ground was strewn with bricks. The air was filled with the smell of tear gas. Fire was raging on campus. Hundreds of protesters, most of them clad in black, formed human chains to pass bricks and petrol bombs to the front line.
One of the best universities in Hong Kong has turned into a battlefield after another day of intense clashes between students, who have been at the forefront of anti-government protests, and police.
The Chinese University students have been putting up resistance since the morning. On Monday, police seemed to change strategy by deploying forces to campuses. Students told me they should not be allowed there.
The university’s management has tried to deescalate the situation. Vice-chancellor Rocky Tuan was also tear gassed as he was negotiating with police.
Dozens of students have been injured, including at least one hit in the eye by a projectile. The night is young and students swear they will not surrender.
Image copyright EPAImage caption China is getting dressed up for its big birthday party
One week from now, the People’s Republic of China will mark its 70th anniversary with celebrations on a scale not seen in China in decades.
Beijing is pulling out all stops and 1 October will be flush with fireworks, fanfare and a huge military parade.
To ensure it goes smoothly, authorities have been ramping up security in the capital – and online – for weeks.
But with yet more protests expected in Hong Kong, the territory might just rain on China’s parade.
What is it all about?
The birth of modern China was declared on 1 October 1949, after the communists under Mao Zedong won the civil war that followed World War Two.
Image copyright EPAImage caption Exhibitions are highlighting the achievements of the Communist Party
The date is marked every year, but celebrations for this 70th anniversary are expected to eclipse previous events.
It’s the first big anniversary since China has emerged as a global power. While 10 years ago China was a superpower in the making, it is now the world’s second largest economy, almost eye-to-eye with the United States.
What to expect?
The main celebrations will take place in the capital, Beijing, where there will be a grand military parade with “advanced weapons” on display, followed by a “mass pageant”.
President Xi Jinping – considered the most powerful Chinese leader since Mao – will address the Chinese people. His speech is expected to celebrate China’s rapid growth and which will be closely watched for any indication of the country’s direction in the coming years.
The president will also hand out honours for contributions to the country and in the evening there will be a grand gala and fireworks show.
All official Chinese celebrations are carefully choreographed and the success of this one is particularly important to the government.
The Dos and Don’ts
The parade – open to invited guests only – will take place around Tiananmen Square in central Beijing. The surrounding area will be practically under lockdown, and in fact has been so several times already.
During rehearsals leading up to the big day, hotels near Tiananmen Square told guests that for several hours each day, no-one would be able to leave the hotel or return to it should they be out, leading to much travel chaos and rebookings.
Many shops and restaurants in the centre are also closed or have shortened hours and some subway stations are temporarily shut.
Image copyright EPAImage caption Security is tight ensure the party goes to plan
Trains to Beijing are running numerous safety checks on their passengers and vehicles going into the city are also being tightly watched.
On the big day itself, areas around Tiananmen Square will be blocked and guarded. Local residents will need to identify themselves if they want to pass.
To ensure the sun will shine brightly on the celebration in notoriously polluted Beijing, several coal plants and construction sites in and around the city have been ordered to stop work for the duration.
There’s also a ban on any low-flying aerial vehicles in place. That means anything from light aircraft to drones, balloons and even racing pigeons.
Censorship galore
Across much of the city centre, there are national flags set up at every door. Voluntary inspectors are monitoring the streets and locals have told the BBC they’re being questioned after having even brief conversations with foreigners
One person said she was asked by an inspector: “Who were those foreigners? Why were they here?”
The tight control naturally extends online as well. Popular social media platform Weibo said it was deleting content that “distorts” or “insults” the country’s history ahead of the anniversary.
Image copyright GETTY IMAGESImage caption Every house and every shop is sporting a national flag
Chinese journalists are always expected to toe the party line anyway, but starting in October they will have to pass an extra test to prove they are versed particularly in Xi Jinping’s teachings, officially called Xi Jinping Thought on Socialism with Chinese Characteristics, which has been written into the constitution.
Whether or not they pass the exam will then determine whether they’ll be accredited as journalists.
“The fundamental point with this ‘training’ and indoctrination process isn’t so much about the content,” David Bandurski of China Media Watch told the BBC.
“It is about reinforcing the message and understanding among journalists that they work, first and foremost, for the Chinese Communist Party, and serve its agenda.”
So not only will the events be choreographed – the domestic coverage of them will also be tightly guarded.
What about Hong Kong?
Despite Beijing’s determination to let its achievements shine on 1 October, there’s a good chance Hong Kong will pull focus.
Anti-Beijing protests always take place in Hong Kong on China’s National Day, but this time, the activists know that the world is watching.
Anti-government protests have rocked the city for months and the situation shows no sign of dying down.
Clashes between police and activists have been becoming increasingly violent, with police using tear gas and activists storming parliament.
Image copyright AFPImage caption The protests have often escalated into violent clashes
That means two things for 1 October: official celebrations in the territory are being toned down to avoid clashes – the annual fireworks display has been cancelled – while at the same time, activists are planning to step up their protests.
On Sunday 29 September, a “Global Anti Totalitarianism March” is scheduled to take place at various locations around the world in support of Hong Kong.
On 1 October itself, a march in central Hong Kong is planned with everyone asked to wear black.
If the past weeks’ demonstrations are anything to go by, the smiles and celebrations in Beijing will be competing for media space with pictures of tear gas and angry young protesters in Hong Kong.
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