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.
CHENNAI (Reuters) – At least 11 people were killed in India in a gas leak at a South Korean-owned factory making polystyrene products that made hundreds of people sick and led to the evacuation of villagers living nearby, officials said.
The accident occurred some 14 km (9 miles) inland from the east coast city of Visakhapatnam, in Andhra Pradesh state, at a plant operated by LG Polymers, a unit of South Korea’s biggest petrochemical maker, LG Chem Ltd.
Srijana Gummalla, commissioner of the Greater Visakhapatnam Municipal Corporation, said gas from styrene, a principal raw materials at the plant, leaked during the early hours of the morning, when families in the surrounding villages were asleep.
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LG Chem share price falls nearly 2% after deadly gas leak in India
Yashwanth Saikumar Ambati, 23, who lives about 300 metres away from the plant, said he woke up around 4.30 a.m. because of a strong smell.
“I went back to sleep and I woke up around 6 because the smell got stronger. My eyes were itchy, and I was feeling drowsy, light-headed and slightly breathless,” he told Reuters, adding that neighbours also complained of eye irritation and stomach aches.
In a statement issued from Seoul, LG Chem said that the gas emitted in the leak can cause nausea and dizziness when inhaled, adding that it was seeking to ensure casualties received treatment quickly.
Video from Reuters partner ANI shot later on Thursday showed emergency workers in the area rushing to help victims, some of whom appeared to be listless and disoriented.
A number of victims lay unconscious on the streetside, as volunteers fanned them and others carried them to ambulances.
A spokesman for LG Chem in Seoul said the leak was discovered by a night shift maintenance worker and has been brought under control.
According to both the company spokesman and Gummalla, the plant was being reopened after India relaxed a nationwide lockdown that had been imposed on March 25 to contain the spread of the new coronavirus.
Thursday’s incident brought back bad memories of a gas leak at an factory of U.S. chemical firm Union Carbide that killed thousands in the central Indian city of Bhopal in 1984, but thankfully it was on a far smaller scale.
“I pray for everyone’s safety and well-being in Visakhapatnam,” Prime Minister Narendra Modi said in a tweet.
S.N. Pradhan, director general of the National Disaster Response Force, said that at least 11 had died after around 1,000 people living near the plant were exposed to the gas.
FALLING, RUNNING AWAY
B.V. Rani, a revenue official in the district, said she received a call at around 4 a.m. from a police officer near the facility, who sounded panicky. “He asked me to come to the spot immediately,” Rani told Reuters.
When Rani went there, she saw that people had collapsed unconscious in the village adjoining the 60-acre site of the plant.
“I personally helped more than 15 people get to an ambulance who had tried to run away from the village but dropped down within a few metres,” she said.
At least one child was among the dead, a policeman at the site told ANI, whose video showed at least two other children being lifted into an ambulance.
Between 300-400 people were hospitalised, Swarupa Rani, an Assistant Commissioner of Police in Visakhapatnam told Reuters. Another 1,500 people had been evacuated, mostly from a neighbouring village.
Areas within approximately 3-kilometre (nearly 2-mile) radius of the plant were evacuated, he said, with emergency services going from door-to-door to find anyone left behind.
TOP PETROCHEMICAL MAKER
Andhra Pradesh Chief Minister Jagan Mohan Reddy said in a televised address that the gas leak occurred because raw material was stored for a long period of time.
The state government will give 10 million rupees ($131,900) compensation to the families to those who died, and it will also form a panel to investigate the cause of the accident, said P.V. Ramesh, a senior aide to the chief minister.
“Obviously something has gone wrong,” Ramesh told Reuters. “Nobody will be spared.”
LG Chem’s share priced closed nearly 2% weaker on Thursday, in a Seoul market that was broadly flat.
South Korea’s top petrochemical maker by capacity, LG Chem acquired the plant in 1997 and established LG Polymers India Private Limited (LGPI), according to a company website.
The LG Polymers plant makes polystyrene products which are used in manufacturing electric fan blades, cups and cutlery and containers for cosmetic products such as make up.
“LG Polymers is a multi national, reputed company, and it is sad that the incident has happened in their plant,” Chief Minister Reddy said in a televised media address.
Buffett’s Berkshire posted a record quarterly net loss of nearly US$50 billion
Company sells entire stakes in US airlines, Buffett says ‘world has changed’
Warren Buffett speaks during the virtual Berkshire Hathaway annual shareholders meeting. Photo: Bloomberg
Billionaire investor Warren Buffett said Saturday he’s confident the US economy will bounce back from its pummelling by the coronavirus pandemic because “American magic has always prevailed”.
The 89-year-old made the sanguine prediction about the world’s largest economy as his holding company Berkshire Hathaway reported first-quarter net losses of nearly US$50 billion.
Buffett also announced Saturday that his company had sold all its stakes in four major US airlines last month, as the pandemic clobbered the travel industry.
“It turns out I was wrong,” he said of his acquisitions of 10 per cent stakes in American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.
Berkshire Hathaway had paid US$7 billion to US$8 billion, and “we did not take out anything like that,” he said.
Between the purchases that took place over months, and the sale, “the airlines business I think changed in a very major way” and could no longer meet Berkshire criteria for profitability, he said.
Buffett’s announcement may further hurt airlines already pushed to the brink by coronavirus lockdown measures, now looking to the US government for US$25 billion in relief funds.
Berkshire Hathaway, based in Omaha, Nebraska, called its first-quarter setback “temporary” but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits.
Warren Buffett (left) and vice-chairman Charlie Munger at the annual Berkshire shareholder shopping day in Omaha, Nebraska in 2019. Photo: Reuters
“We’ve faced great problems in the past, haven’t faced this exact problem – in fact we haven’t really faced anything that quite resembles this problem,” Buffett said in a lengthy speech on the country’s economic history.
“But we faced tougher problems, and the American miracles, American magic has always prevailed and it will do so again.”
“We are now a better country, as well as an incredibly more wealthy country, than we were in 1789 … We got a long ways to go but we moved in the right direction,” he said, referencing the abolition of slavery and women’s suffrage.
Warren Buffett has traded his old flip phone for Apple’s iPhone
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“Never bet against America.”
Buffett is considered one of the savviest investors anywhere. His fortune of US$72 billion is the fourth-largest in the world, according to Forbes, and in normal years, the company’s annual gathering in Omaha is a high-point of the calendar for investors, a “Woodstock for capitalists”.
But the devastating economic impact of the pandemic has hit hard at Berkshire Hathaway’s wide range of investments, and the need for social distancing forced it to hold the annual meeting online.
Buffett addressed his shareholders in a live-stream flanked only by Gregory Abel, who is in charge of Berkshire’s non-insurance operations.
His business partner for six decades, 96-year-old Charlie Munger, did not appear.
China’s first-quarter GDP shrinks for the first time since 1976 as coronavirus cripples economy
Buffett, in a statement, played down his company’s bleak-looking net figure. He said a better measure of the company’s performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations.
By that measure, Berkshire Hathaway saw growth to US$5.9 billion from US$5.55 billion a year earlier.
The brutal drop in the net – to a loss of US$49.75 billion from a profit last year of US$21.7 billion – resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology.
Chinese cryptocurrency billionaire finally sits down to eat with Warren Buffett
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The annual meeting often has an almost carnival atmosphere, as thousands of fans and investors flock to Nebraska to hear from the celebrated “Oracle of Omaha”. Buffett, famous for his relatively modest lifestyle, turns 90 on August 30.
In documents filed Saturday, Berkshire noted that until mid-March many of its companies were posting “comparative revenue and earnings increases” over the same 2019 period.
Many of its companies – including in rail transport, energy production and some manufacturing and service businesses – are deemed essential and are able to continue working amid the far-reaching confinement orders.
But their turnover slowed considerably in April, the company statement said.
Moves taken by those companies such as employee furloughs, salary cuts and reductions, and capital spending reductions are “necessary actions” and “temporary,” it said.
People work at a construction site of a utility tunnel in Wuhan, central China’s Hubei Province, April 30, 2020. (Xinhua/Xiao Yijiu)
BEIJING, May 1 (Xinhua) — China is getting the world’s largest workforce back to work as the nationwide battle against COVID-19 has secured major strategic achievements.
The unprecedented fight has nurtured new trends in the workplace. For example, more attention is being paid to public health and e-commerce to boost consumption and emerging sectors brought by new applications based on the country’s rapid new infrastructure development of 5G networks and data centers.
In this aerial photo taken on April 29, 2020, representatives of frontline health workers fighting COVID-19 attend a bell-ringing ceremony at the Yellow Crane Tower, or Huanghelou, a landmark in Wuhan, central China’s Hubei Province. (Xinhua/Xiao Yijiu)
ANGELS OF PUBLIC HEALTH
Ye Man, head nurse of gastrointestinal department of Hubei General Hospital East District, one of the five remaining COVID-19 designated hospitals in Wuhan, is taking her first weeklong vacation since January.
The 34-year-old mother of two started to take a week off on Monday, one day after her hospital cleared all remaining confirmed COVID-19 patients. The nine ICU wards in her hospital had been kept occupied over the past several months.
Friday marked International Workers’ Day, and the start of China’s five-day public holiday. Ye said she planned to visit urban parks with her family during the holiday.
At her busiest point, she and her colleagues took care of a ward filled with 40 COVID-19 patients.
“It was a really tough time,” she recalled. She had to wear a protective gown and a mask for nine hours a day and be separated from her family to avoid possible cross-infections.
Wuhan, capital of central China’s Hubei Province and once hard hit by COVID-19, cleared all confirmed cases in hospitals on April 26. Over 42,000 medical workers mobilized nationwide to aid Hubei have contributed to achieving a decisive outcome in the fight to defend Hubei and Wuhan.
In an inspection tour to Wuhan on March 10, President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, lauded medical workers as “the most beautiful angels” and “messengers of light and hope.”
To reward brave and dedicated medics, major tourist sites in Hubei are offering free entry to medical staff over the following two years.
Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, learns about development of the black fungus industry in Jinmi Village of Xiaoling Township in Zhashui County, Shangluo City, northwest China’s Shaanxi Province, April 20, 2020. (Xinhua/Xie Huanchi)
LIVESTREAMING ANCHORS
“We have a new batch of supplies today. Those who did not get the goods should hurry to buy now,” said Li Xuying, a livestreaming anchorwoman selling agaric mushrooms in Zhashui, a small county deep in the Qinling Mountains in northwest China’s Shaanxi Province.
Li has been prepared for a boom of online shopping in the holiday, because online buyers rushed to her livestreaming website to place orders, after Xi inspected the county and chatted with her in the village of Jinmi during a recent tour to Shaanxi.
“I used to sell goods worth about 50,000 yuan (7,070 U.S. dollars) on average after a six-hour livestreaming session. Now the sales are 10 times that,” she said.
Li was one of the 10 sales staff sent by the local agricultural e-commerce firm to Chinese e-commerce platform Taobao’s headquarters for livestreaming training. She said livestreaming is effective in bridging buyers and farmers, through which viewers can watch planting and harvesting online.
With the number of netizens in China reaching 904 million in March, e-commerce has been one of the popular means of promoting the sale of farm produce and helping farmers shake off poverty. Despite the impact of COVID-19, the country is determined to eradicate absolute poverty by the end of this year.
Workers work at the construction site of a 5G base station at Chongqing Hi-tech Zone in Chongqing, southwest China, April 15, 2020. (Xinhua/Wang Quanchao)
HI-TECH WORKERS IN “NEW INFRASTRUCTURE” BUILDING
As an elasticity calculation engineer of Alibaba Cloud, Zhao Kun and his colleagues always stay on alert for high data flow, for example, brought by the anticipated online shopping spike during the holiday.
“The profession, which may sound obscure, is actually closely connected to everyone’s life, as cloud computing is the infrastructure supporting high-tech applications of artificial intelligence and blockchain,” said Zhao.
The Chinese leadership has underscored expediting “new infrastructure” development to boost industrial and consumption upgrading and catalyze new growth drivers.
Seizing the opportunities of industrial digitization and digital industrialization, China needs to expedite the construction of “new infrastructure” projects such as 5G networks and data centers, and deploy strategic emerging sectors and industries of the future including the digital economy, life health services and new materials, President Xi has said.
During the epidemic, Zhao and his colleagues expanded more than 100,000 cloud servers to ensure the stable operation of “cloud classrooms” and “cloud offices” for millions of people working and studying from home.
In the “new infrastructure” building, people like Zhao contribute to constructing the virtual infrastructure of an ecosystem, which enables e-commerce, e-payment, online teaching and the digital transformation of manufacturing and supply chain management.
In early April, China released a plan on promoting the transformation of enterprises toward digitalization and intelligence by further expanding the application of cloud and data technologies, to nurture new business models of the digital economy.
Six animals inoculated with vaccine candidate then exposed to virus did not catch Covid-19 after 28 days
Up to 60 million doses could be produced by Serum Institute of India this year
Microbiologist Elisa Granato gets an injection on Thursday as part of the first human trials in Britain for a potential coronavirus vaccine. Photo: University of Oxford via AP
A leading candidate for a Covid-19 vaccine has shown promising results in animal trials, and is expected to see mass production in India within months.
The Serum Institute of India, the world’s largest maker of vaccines by volume, said on Tuesday that it plans this year to produce up to 60 million doses of a potential vaccine developed by the University of Oxford, which is under clinical trial in Britain.
While the vaccine candidate, called “ChAdOx1 nCoV-19”, is yet to be proven to work against Covid-19, Serum decided to start manufacturing it as it had shown success in animal trials and had progressed to tests on humans, Serum Chief Executive Adar Poonawalla said.
Six rhesus macaque monkeys were inoculated with the vaccine candidate at the National Institutes of Health’s Rocky Mountain Laboratory in Montana last month, according to The New York Times.
Covid-19 vaccine trial starts in Oxford, but remdesivir treatment reportedly flops in China tests
The subjects were exposed afterwards to large quantities of the novel coronavirus, but all six remained healthy after more than 28 days, the newspaper reported, citing researcher Vincent Munster, who conducted the test.
More than 3 million people have been reported to be infected globally and over 210,000 have died from Covid-19, the respiratory disease caused by the coronavirus.
“They are a bunch of very qualified, great scientists [at Oxford] … That’s why we said we will go with this and that’s why we are confident,” Poonawalla told Reuters in a phone interview.
“Being a private limited company, not accountable to public investors or bankers, I can take a little risk and sideline some of the other commercial products and projects that I had planned in my existing facility,” Poonawalla said.
Bill Gates hopes his virus vaccine ‘manufacturing within a year’
27 Apr 2020
As many as 100 potential Covid-19 candidate vaccines are now under development by biotech and research teams around the world, and at least five of these are in preliminary testing in people in what are known as phase one clinical trials.
Poonawalla said he hoped trials of the Oxford vaccine, due to finish in about September, would be successful. Oxford scientists said last week the main focus of initial tests was to ascertain not only whether the vaccine worked but that it induced good immune responses and no unacceptable side effects.
Serum, owned by the Indian billionaire Cyrus Poonawalla, plans to make the vaccine at its two manufacturing plants in the western city of Pune, aiming to produce up to 400 million doses next year if all goes well, Poonawalla said.
“A majority of the vaccine, at least initially, would have to go to our countrymen before it goes abroad,” he said, adding that Serum would leave it to the Indian government to decide which countries would get how much of the vaccine and when.
Rhesus macaque monkeys are often used in animal testing because of their similarity to humans. Photo: AFP
Serum envisages a price of 1,000 rupees (US$14.70) per vaccine, but governments would give it to people without charge, he said.
He said Prime Minister Narendra Modi’s office was “very closely” involved in the vaccine production and the company is hoping the government will help foot the cost of making it.
Over roughly the next five months, Serum will spend some 300 million to 400 million rupees (US$4.4 million to US$5.9 million) on making around 3-5 million doses per month, he said. “[The government] are very happy to share some risk and fund something with us, but we haven’t really pencilled anything down yet,” Poonawalla said.
Coronavirus: clinical trial begins on third vaccine candidate in China
22 Apr 2020
Serum has also partnered with the US biotech firm Codagenix and Austria’s Themis on two other Covid-19 vaccine candidates and plans to announce a fourth alliance in a couple of weeks, he said.
Serum’s board last week also agreed to invest roughly 6 billion rupees (US$8.8 billion) on making a new manufacturing unit to solely produce coronavirus vaccines, Poonawalla said.
BEIJING (Reuters) – China’s factory activity likely rose for a second straight month in April as more businesses re-opened from strict lockdowns implemented to contain the coronavirus outbreak, which has now paralysed the global economy.
The official manufacturing Purchasing Manager’s Index (PMI), due for release on Thursday, is forecast to fall to 51 in April, from 52 in March, according to the median forecast of 32 economists polled by Reuters. A reading above the 50-point mark indicates an expansion in activity.
While the forecast PMI would show a slight moderation in China’s factory activity growth, it would be a stark contrast to recent PMIs in other economies, which plummeted to previously unimaginable lows.
That global slump, caused by heavy government-ordered lockdowns, as well as the cautious resumption of business in China, suggests any recovery in the world’s second-largest economy is likely to be some way off.
“The recovery so far has been led by a bounce-back in production, however, the growth bottleneck has decisively shifted to the demand side, as global growth has weakened and consumption recovery has lagged amid continued social distancing,” Morgan Stanley said in a note.
“The expected slump in external demand has likely capped further recovery in industrial production.”
The latest official data showed 84% of mid-sized and small business had reopened as of April 15, compared with 71.7% on March 24.
Hobbled by the coronavirus, China’s economy shrank 6.8% in the first quarter from a year earlier, the first contraction since current quarterly records began.
That has left Chinese manufacturers with reduced export orders and a logistics logjam, as many exporters grapple with rising inventory, high costs and falling profits. Some have let workers go as part of the cost-cutting efforts.
A China-based brokerage Zhongtai Securities estimated that the country’s real unemployment rate, measured using international standards, could exceed 20%, equal to more than 70 million job losses and much higher than March’s official reading of 5.9%.
Sheng Laiyun, deputy head at the statistics bureau, said on Sunday migrant workers and college graduates are facing increasing pressures to secure jobs, while official jobless surveys show nearly 20% of employed workers not working in March.
Chinese authorities have rolled out more support to revive the economy. The People’s Bank of China earlier in April cut the amount of cash banks must hold as reserves and reduced the interest rate on lenders’ excess reserves.
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.
China’s famed Yiwu International Trade Market, a barometer for the health of the nation’s exports, has been hammered by the economic fallout from Covid-19
Export orders have dried up amid sweeping containment measures in the US and Europe and restrictions on foreigners entering China have shut out international buyers
The coronavirus pandemic has severely dented wholesale trade at the Yiwu International Trade Market in China. Photo: SCMP
The Yiwu International Trade Market has always been renowned as a window into the vitality of Chinese manufacturing, crammed with stalls showcasing everything from flashlights to machine parts.
But today, as the coronavirus pandemic rips through the global economy, it offers a strikingly different picture – the dismal effect Covid-19 is having on the nation’s exports.
The usually bustling wholesale market, home to some 70,000 vendors supplying 1,700 different types of manufactured goods, is a shadow of its former self.
Only a handful of foreign buyers traipse through aisles of the sprawling 4-million-square-metre (43 million square feet) complex, while store owners – with no customers to tend to – sit hunched over their phones or talking in small groups.
A foreign buyer visits a stall selling face masks. Photo: Ren Wei
“We try to convince ourselves that the deep slump will not last long,” said the owner of Wetell Razor, Tong Ciying, at her empty store. “We cannot let complacency creep in, although the coronavirus has sharply hampered exports of Chinese products.”
Chinese exports plunged by 17.2 per cent in January and February combined compared to the same period a year earlier, according to the General Administration of Customs. The figure was a sharp drop from 7.9 per cent growth in December.
After riding out a supply shock that shut down most of its factories, China is now facing a second wave demand shock, as overseas export orders vanish amid sweeping containment measures to contain the outbreak around the globe.
Nowhere is that clearer to see than in Yiwu. The city of 1.2 million, which lies in the prosperous coastal province of Zhejiang, was catapulted into the international limelight as a showroom for Chinese manufacturing when the country joined the World Trade Organisation in 2001.
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Before the pandemic, thousands of foreign buyers would flock to the mammoth trade market each day to source all manner of products before sending them home.
But the outbreak, which has claimed the lives of more than 113,000 people and infected more than 1.9 million around the world, is proving a major test for the market and the health of the trade dependent city.
Imports and exports via Yiwu last year were valued at 296.7 billion yuan (US$42.2 billion) – nearly double the city’s economic output.
Businesses, however, are facing a very different picture in 2020. Most traders at the market say they have lost at least half their business amid the pandemic, which was first detected in the central Chinese city of Wuhan last year.
Just take a look at the situation in Yiwu and you will understand the extent of the virus’ effect on China’s trade with foreign countries – Tianqing
“Yiwu is the barometer for China’s exports,” said Jiang Tianqing, the owner of Beauty Shine Industry, a manufacturer of hair brushes. “Just take a look at the situation in Yiwu and you will understand the extent of the virus’ effect on China’s trade with foreign countries.”
Jiang said his business was only just hanging on thanks to a handful of loyal customers placing orders via WeChat.
“I assume it will be a drawn-out battle against the coronavirus,” he said. “We are aware of the fact that developed economies like the US and Europe have been severely affected.”
The Yiwu market reopened on February 18 after a one-month long hiatus following the Lunar New Year holiday and the government’s order to halt commercial activities to contain the spread of the outbreak.
Jiang Tianqing, owner of hair brush company Beauty Shine Industry. Photo: Ren Wei
But facing the threat of a spike in imported cases, Beijing banned foreigners from entering the country in late March – shutting out potential overseas buyers.
Despite the lack of business, local authorities have urged stall owners to keep their spaces open to display Yiwu’s pro-business attitude, owners said.
“For those bosses who just set up their shops here, it would be a do-or-die moment now since their revenue over the next few months will probably be zero,” said Tong. “I am lucky that my old customers are still making orders for my razors.”
The impact of the coronavirus is just the latest challenge for local merchants, who normally pay 200,000 yuan (US$28,000) per year for a 10-square-metre (108 square feet) stall at the market.
Traders were hard hit by the trade war between China and the United States when the Trump administration imposed a 25 per cent tariff on US$200 billion of Chinese imports last year.
At the time, some Chinese companies agreed to slash their prices to help American buyers digest the additional costs.
“But it is different this time,” said Jiang. “Pricing does not matter. Both buyers and sellers are eager to seal deals, but we are not able to overcome the barriers [to demand caused by the virus].”
Ma Jun, a manager with a LED light bulb trading company, said the only export destination for her company’s products was war-torn Yemen because it was the only country with ports still open.
It is a public health crisis that ravages not just our businesses, but the whole world economy – Dong Xin
Dong Xin, an entrepreneur selling stationery products, said he could not ship the few orders he had because “ocean carriers have stopped operations”.
“It is a public health crisis that ravages not just our businesses, but the whole world economy,” he said. “The only thing can do is to pray for an early end to the pandemic.”
Most wholesale traders in the Yiwu market run manufacturing businesses based outside the city, so a sharp fall in sales has a ripple effect on their factories, potentially resulting in massive job cuts.
Workers pack containers at Yiwu Port, an inland port home to dozens of warehouses. Photo: Ren Wei
At Yiwu Port, an inland logistics hub full of warehouses where goods from the factories are unpacked and repacked for shipping abroad, container truck drivers joke about their job prospects.
“We used to commute between Shaoxing and here five times a week, and now it is down to twice a week,” said a driver surnamed Wang, describing the trip from his home to the shipping port, just over 100km away.
“At the end of the day, we may not be infected with the coronavirus, but our jobs will still be part of the cost of the fight against it.”
US death toll passes 3,000 as New York’s hospitals are pushed to breaking point
Italy extends lockdown as cases exceed 100,000; UN Security Council votes by email for first time
The USNS Comfort passes the Statue of Liberty as it enters New York Harbour on Monday. Photo: Reuters
Harsh lockdowns aimed at halting the march of the coronavirus pandemic extended worldwide Monday as the death toll soared toward 37,000 amid new waves of US outbreaks.
The tough measures that have confined some two-fifths of the globe’s population to their homes were broadened. Moscow and Lagos joined the roll call of cities around the globe with eerily empty streets, while Virginia and Maryland became the latest US states to announce emergency stay-at-home orders, followed quickly by the capital city Washington.
In a symbol of the scale of the challenge facing humanity, a US military medical ship sailed into New York to relieve the pressure on overwhelmed hospitals bracing for the peak of the pandemic.
France reported its highest daily number of deaths since the outbreak began, saying 418 more people had succumbed in hospital.
Spain, which announced another 812 virus deaths in 24 hours, joined the United States and Italy in surpassing the number of cases in China, where the disease was first detected in December.
On Tuesday, mainland China reported a rise in new confirmed coronavirus cases, reversing four days of declines, due to an uptick in infections involving travellers arriving from overseas.
Mainland China had 48 new cases on Monday, the National Health Commission said, up from 31 new infections a day earlier.
All of the 48 cases were imported, bringing the total number of imported cases in China to 771 as of Monday.
There was no reported new case of local infection on Monday, according to the National Health Commission. The total number of infections reported in mainland China stood at 81,518 and the death toll at 3,305. Globally, more than 760,000 have been infected, according to official figures.
Here are the developments:
Hospital ship arrives in New York
New York’s governor issued an urgent appeal for medical volunteers Monday amid a “staggering” number of deaths from the coronavirus, saying: “Please come help us in New York, now.”
The plea from Governor Andrew Cuomo came as the death toll in New York State climbed past 1,200 – with most of the victims in the big city – and authorities warned that the crisis pushing New York’s hospitals to the breaking point is just a preview of what other cities across the US could soon face.
Cuomo said the city needs 1 million additional health care workers.
“We’ve lost over 1,000 New Yorkers,” he said. “To me, we’re beyond staggering already. We’ve reached staggering.”
The governor’s plea came as a 1,000-bed US Navy hospital ship docked in Manhattan on Monday and a field hospital was going up in Central Park for coronavirus patients.
New York City reported 914 deaths from the virus as of 4:30pm local time Monday, a 16 per cent increase from an update six hours earlier. The city, the epicentre of the US outbreak, has 38,087 confirmed cases, up by more than 1,800 from earlier in the day.
Coronavirus field hospital set up in New York’s Central Park as city’s health crisis deepens
Gloom for 24 million people in Asia
The economic fallout from the coronavirus pandemic will prevent almost 24 million people from escaping poverty in East Asia and the Pacific this year, according to the World Bank.
In a report released on Monday, the Washington-based lender also warned of “substantially higher risk” among households that depend on industries particularly vulnerable to the impact of Covid-19. These include tourism in Thailand and the Pacific islands; manufacturing in Vietnam and Cambodia; and among people dependent on “informal labour” in all countries.
The World Bank urged the region to invest in expanding conventional health care and medical equipment factories, as well as taking innovative measures like converting ordinary hospital beds for ICU use and rapidly trining people to work in basic care.
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Indonesia bans entry of foreigners
Indonesia barred foreign nationals from entering the country as the world’s fourth-most populous country stepped up efforts to contain the spread of the coronavirus pandemic.
The travel ban, to be effective soon, will also cover foreigners transiting through the country, Foreign Minister Retno Marsudi said after a cabinet meeting in Jakarta Tuesday. The curbs will not apply to holders of work permits, diplomats and other official visitors, she said.
The curbs on foreign citizens is the latest in a raft of measures taken by Indonesia to combat the deadly virus that’s sickened more than 1,400 people and killed 122. President Joko Widodo’s administration previously banned flights to and from mainland China and some of the virus-hit regions in Italy, South Korea and Iran. The president on Monday ordered stricter implementation of social distancing and health quarantine amid calls for a lockdown to contain the pandemic.
Indonesia has highest coronavirus mortality rate in Southeast Asia
First US service member dies
The first US military service member has died from the coronavirus, the Pentagon said on Monday, as it reported another sharp hike in the number of infected troops.
The Pentagon said it was a New Jersey Army National Guardsman who had tested positive for Covid-19 and had been hospitalised since March 21. He died on Saturday, it said.
Earlier on Monday, the Pentagon said that 568 troops had tested positive for the coronavirus, up from 280 on Thursday. More than 450 Defence Department civilians, contractors and dependents have also tested positive, it said.
US military has decided to stop providing more granular data about coronavirus infections within its ranks, citing concern that the information might be used by adversaries as the virus spreads.
The new policy, which the Pentagon detailed in a statement on Monday, appears to underscore US military concerns about the potential trajectory of the virus over the coming months – both at home and abroad.
School to resume in South Korea … online
South Korean children will start the new school year on April 9 with only online classes, after repeated delays due to the outbreak of the new coronavirus, the government said Tuesday.
Prime Minister Chung Sye Kyun said that despite the nation’s utmost efforts to contain the virus and lower the risk of infection, there is consensus among teachers and others that it is too early to let children go back to school.
The nation’s elementary schools, and junior and senior high schools were supposed to start the new academic year in early March, but the government has repeatedly postponed it to keep the virus from spreading among children.
The start was last postponed until April 6, but has now been delayed three more days to allow preparations to be made for online classes.
The nation now has 9,786 confirmed cases in total, with 162 deaths.
Italy extends lockdown as cases exceed 100,000
Italy’s government on Monday said it would extend its nationwide lockdown measures
against a coronavirus outbreak, due to end on Friday, at least until the Easter season in April.
The Health Ministry did not give a date for the new end of the lockdown, but said it would be in a law the government would propose. Easter Sunday is April 12 this year. Italy is predominantly Roman Catholic and contains the Vatican, the heart of the church.
Italians have been under lockdown for three weeks, with most shops, bars and restaurants shut and people forbidden from leaving their homes for all but non-essential needs.
Italy, which is the world’s hardest hit country in terms of number of deaths and accounts for more than a third of all global fatalities, saw its total death tally rise to 11,591 since the outbreak emerged in northern regions on February 21.
The death toll has risen by 812 in the last 24 hours, the Civil Protection Agency said, reversing two days of declines, although the number of new cases rose by just 4,050, the lowest increase since March 17, reaching a total of 101,739.
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Women stand near the body of a man who died on the sidewalk in Guayaquil, Ecuador. Photo: Reuters
Ecuador struggles to collect the dead
Ecuadorean authorities said they would improve the collection of corpses, as delays related to the rapid spread of the new coronavirus has left families keeping their loved ones’ bodies in their homes for days in some cases.
Residents of Guayaquil, Ecuador’s largest city, have complained they have no way to dispose of relatives’ remains due to strict quarantine and curfew measures designed to prevent spread of the disease. Last week, authorities said they had removed 100 corpses from homes in Guayaquil.
But delays in collecting bodies in the Andean country, which has reported 1,966 cases of the virus and 62 deaths, were evident midday on Monday in downtown Guayaquil, where a man’s dead body lay on a sidewalk under a blue plastic sheet. Police said the man had collapsed while waiting in line to enter a store. Hours later, the body had been removed.
More than 70 per cent of the country’s coronavirus cases, which is among the highest tallies in Latin America, are in the southern province of Guayas, where Guayaquil is located.
Panama to restrict movement by gender
The government of Panama announced strict quarantine measures that separate citizens by gender in an effort to slow the spread of the novel coronavirus.
From Wednesday, men and women will only be able to leave their homes for two hours at a time, and on different days. Until now, quarantine regulations were not based on gender.
Men will be able to go to the supermarket or the pharmacy on Tuesdays, Thursdays and Saturdays, and women will be allowed out on Mondays, Wednesdays and Fridays.
No one will be allowed to go out on Sundays. The new measures will last for 15 days.
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Remote vote first for UN Security Council
The UN Security Council on Monday for the first time approved resolutions remotely after painstaking negotiations among diplomats who are teleworking due to the coronavirus pandemic.
The Security Council unanimously voted by email for four resolutions, including one that extended through April 2021 the expiring mandate of UN experts who are monitoring sanctions on North Korea, diplomats said.
The UN mission in Somalia was also prolonged, until the end of June, and the mission in Darfur until the end of May – two short periods decided due to uncertainty over the spread of the pandemic.
The Council also endorsed a fourth resolution aimed at improving the protection for peacekeepers.
The resolutions are the first approved by the Security Council since it began teleworking on March 12 and comes as Covid-19 rapidly spreads in New York, which has become the epicenter of the disease in the United States.
Congo ex-president dies in France
Former Republic of Congo president Jacques Joaquim Yhombi Opango died in France on Monday of the new coronavirus, his family said. He was 81.
Yhombi Opango, who led Congo-Brazzaville from 1977 until he was toppled in 1979, died at a Paris hospital of Covid-19, his son Jean-Jacques said. He had been ill before he contracted the virus.
Yhombi Opango was an army officer who rose to power after the assassination of president Marien Ngouabi.
Yhombi Opango was ousted by long-time ruler Denis Sassou Nguesso. Accused of taking part in a coup plot against Sassou Nguesso, Yhombi Opango was jailed from 1987 to 1990. He was released a few months before a 1991 national conference that introduced multiparty politics in the central African country.
When civil war broke out in Congo in 1997, Yhombi Opango fled into exile in France. He was finally able to return home in 2007, but then divided his time between France and Congo because of his health problems.
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EU asks Britain to extend Brexit talks
The European Union expects Britain to seek an extension of its post-Brexit transition period beyond the end of the year, diplomats and officials said on Monday, as negotiations on trade have ground to a halt due to the coronavirus pandemic.
Europe has gone into a deep lockdown in a bid to curb the spread of the disease, with more than 330,000 infections reported on the continent and nearly 21,000 deaths.
In Britain, Prime Minister Boris Johnson and his health minister have both tested positive for the virus and the prime minister’s senior adviser Dominic Cummings – one of the masterminds behind Britain’s departure from the EU earlier this year – was self-isolating with symptoms.
London and the EU have been seeking to agree a new trade pact by the end of the year to kick in from 2021, even though the bloc has long said that such a time frame was extremely short to agree rules on everything from trade to security to fisheries.
The pyramid of Khufu, the largest of the Giza pyramid complex. Photo: Reuters
Great Pyramid in Egypt lights up in solidarity
Egypt’s famed Great Pyramid was emblazoned Monday evening with messages of unity and solidarity with those battling the novel coronavirus the world over.
“Stay safe”, “Stay at home” and “Thank you to those keeping us safe,” flashed in blue and green lights across the towering structure at the Giza plateau, southwest of the capital Cairo.
Egypt has so far registered 656 Covid-19 cases, including 41 deaths. Of the total infected, 150 reportedly recovered.
Egypt has carried out sweeping disinfection operations at archaeological sites, museums and other sites across the country.
In tandem, strict social distancing measures were imposed to reduce the risk of contagion among the country’s 100 million inhabitants.
Tourist and religious sites are shuttered, schools are closed and air traffic halted.
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Saudi king to pay for all patients’ treatment
Saudi Arabia will finance treatment for anyone infected with the coronavirus in the country, the health minister said on Monday.
The kingdom has registered eight deaths among 1,453 infections, the highest among the six Gulf Arab states.
Health Minister Tawfiq Al Rabiah said King Salman would cover treatment for citizens and residents diagnosed with the virus, urging people with symptoms to get tested.
“We are all in the same boat,” he told a news conference, adding that Crown Prince Mohammed bin Salman was overseeing containment efforts “night and day”.
Denmark eyes gradual reopening after Easter
Denmark may gradually lift a lockdown after Easter if the numbers of coronavirus cases and deaths remain stable, Prime Minister Mette Frederiksen said on Monday.
The Nordic country, which has reported 77 coronavirus-related deaths, last week extended until after Easter a two-week lockdown to limit physical contact between its citizens that began on March 11.
The number of daily deaths slowed to five on Sunday from eight and 11 on Saturday and Friday respectively. Denmark has reported a total of 2,577 coronavirus infections.
“If we over the next two weeks across Easter keep standing together by staying apart, and if the numbers remain stable for the next two weeks, then the government will begin a gradual, quiet and controlled opening of our society again, at the other side of Easter,” Frederiksen said.
Despite PMI data showing a return to growth in both the manufacturing and non-manufacturing sectors, China’s economic activity is still far from normal
Headwinds include the threat of global recession, a second wave of coronavirus infections and a property slump, analysts warn
China’s economy has shown signs of recovery after a dismal start to the year. Photo: Xinhua
China’s economy showed signs of a recovery in March after a nationwide lockdown paralysed business in February, but analysts warned that it is not yet out of the woods.
Despite stronger-than-expected government data released on Tuesday, a series of threats lying ahead could derail China’s fragile recovery, including a second wave of infections, a global recession, worsening deflation due to plunging oil prices and a potentially sharp fall in the property market.
“While the lowest point is behind us, it’s not the time to celebrate,” said Larry Hu, chief China economist at Macquarie Bank.
For now, March’s figures suggest that business conditions are improving considerably, as more people are able to return to work and coronavirus cases continue to fall.
While the lowest point is behind us, it’s not the time to celebrateLarry Hu
The official purchasing managers’ index (PMIs) surveys showed that both the manufacturing and services sectors returned to growth in March, with many factories and retailers reopening as mainland authorities got the pandemic under control.
It will be welcome news for Beijing after a series of economic data plunged to all-time lows in January and February – including February’s PMIs, which are viewed as leading indicators of the state of the economy for the month ahead.
The manufacturing PMI, a survey of sentiment among factory owners, bounced back to 52.0 in March from 35.7 in February, which was an all-time low by some distance.
China’s non-manufacturing PMI – including both the services and construction sectors – was even weaker in February at 29.6, but its recovery to 52.3 was more marked.
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A number above 50 signifies growth in sector activity, while a number below indicates contraction.
Both indices were significantly higher than expected and produced the V-shaped recovery in sentiment that policymakers had been so desperately pursuing.
But analysts warned that this may be short-lived as virus containment measures are set to sap demand across the globe, hitting China’s exports hard.
This was perhaps reflected in the fact that while many key components of the PMIs returned to growth in March, new export orders remained negative at 46.4.
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“We would like to emphasise that the 52 reading [for manufacturing PMI] actually means a weak business resumption,” said Lu Ting, chief China economist at Nomura.
“We view the jump in both the manufacturing and non-manufacturing PMIs in March as one-off gains from the very low comparison bases in February.”
The dramatic collapse of the economy in the second month of the year meant March’s economic data was always likely to show a positive spike, with PMIs highly sensitive to short-term fluctuations in business conditions due to the way they are collated. Researchers simply ask respondents if things are better or worse than they were the previous month.
“This does not mean output is now back to its pre-virus trend,” said Julian Evans-Pritchard, senior China economist at Capital Economics, in a note. “Instead, it simply suggests that economic activity improved modestly relative to February’s dismal showing, but remains well below pre-virus levels. This is consistent with what the daily activity indicators show.”
It simply suggests that economic activity improved modestly relative to February’s dismal showing, but remains well below pre-virus levelsJulian Evans-Pritchard
Even the Chinese government urged caution against reading too much into the figures.
“We cannot say China’s economy has fully returned to normal levels based on a single month. We need to continue observing changes in the following months,” said a National Bureau of Statistics spokesman, adding that 96.6 per cent of large and medium-sized businesses were back to work as of March 25.
The official PMI survey, which is produced by the National Bureau of Statistics, is weighted more towards larger companies, including state-owned firms that have been the focus of government efforts to review production.
The Caixin-Markit manufacturing PMI data set to be published on Wednesday is weighted more towards smaller, private-sector firms and could show a less buoyant result given their struggles to resume operations.
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Officials in Beijing have been vocal in recent days about their concerns of a possible
. At a press conference in the capital on Monday, vice-minister of industry and information technology Xin Guobin said that small businesses and exporters might “struggle to survive” in the months ahead, due to global economic turbulence.
That was reflected in a new study by investment firm Fidelity International that showed while more than half of restaurants in China have reopened, daily turnover was 40 to 50 per cent below levels seen before the outbreak. Hotel occupancy figures, meanwhile, remain in single digits.
“Expect further slack in quarters three and four, which means the authorities will have to postpone their target to double gross domestic product growth levels to the first half of 2021,” said Carlos Casanova, Asia-Pacific economist at insurer Coface.
visited the industrial powerhouse of Zhejiang province on Sunday in a move state media described as a clear message the country was ready to get the economy back on track amid the “new normal” of dealing with the coronavirus.
The trip, to Ningbo – one of the world’s busiest ports and a trade hub for eastern China – was Xi’s first outside Beijing since he visited Wuhan, the initial epicentre of the Covid-19 outbreak, earlier in the month.
As well as a visiting the port, he spoke to workers at an industrial zone for car part manufacturers, where he learned about the latest efforts to restart production, Xinhua said in a brief report.
The visit came after two months of almost total lockdown in many parts of the country that disrupted businesses, transport and people’s daily lives, and ground the economy to a near standstill.
While local transmissions of the coronavirus in China appear to be under control, Beijing has implemented strict measures to prevent imported cases, including slashing international flights and banning most foreigners from entering the country.
In a separate report, Xinhua said Xi’s visit sent “a clear message” that China was resuming its industrial production and social activities, and described the fight against the coronavirus as the “new normal”.
Reviving the economy and battling a deadly disease were Xi’s “two tough battles”, it said.
Xi’s choice of destination was a clear message that restarting the economy is a top priority. Photo: Xinhua
Zhejiang is something of a power base for Xi, who spent nearly five years there during his climb through the ranks of the Communist Party.
One of the country’s biggest trading hubs, the province generated 3 trillion yuan (US$423.2 billion) in foreign trade last year, or more than 13 per cent of the national total, according to official figures.
“It’s a highly export-oriented economy … which has made it crucial not only to China’s development plan but also to safeguarding the stability of the global supply chain,” Xinhua said.
Observers said Xi’s visit was evidence of Beijing’s determination to get the economy back up and running as soon as possible.
Zhao Xijun, an economics professor at Renmin University, said Ningbo was a key part of the export economy and a base for many local and foreign entrepreneurs.
“It is a clear signal that China, after getting domestic infections under control, is now prioritising economic growth,” he said.
“It also shows the country will keep developing its economy and opening up its markets.”
But hopes of a quick recovery for the Chinese economy have been dashed by the spread of the coronavirus across Europe and the United States, causing a sharp decline in demand for Chinese goods.
Xi spent five years in Zhejiang while climbing the ranks of the Communist Party. Photo: Xinhua
In a meeting on Friday, the Communist Party’s Politburo said it would step up macroeconomic policy adjustments and pursue a more proactive fiscal policy while optimising measures to control the coronavirus to speed up the restoration of production, doing whatever it could to “minimise the losses caused by the epidemic”.
“China has successfully reopened much of its economy from the extremes of the coronavirus lockdown, but now faces a new problem: an impending collapse in demand for its exports as its customers go into lockdowns of their own,” Gavekal Dragnomics said in a research report.
“That shock to industry and manufacturing employment means that China will not enjoy the hoped-for V-shaped recovery in growth.”
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