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.
Image copyright HAN ZHUImage caption Choosing an electric car was an easy decision for Shenzhen resident Han Zhu
Han Zhu is on a mission to go green. The 29-year-old data analyst wants her next car to be electric. But her reasons for buying an electric vehicle are in part practical.
In the southern Chinese city of Shenzhen, government restrictions on the number of petrol cars sold each year mean she would have to enter a lottery or auction to be able to buy a petrol vehicle.
“There is a possibility you may never get it. With the electric vehicle green licence, you don’t have to wait in line,” she says.
Shenzhen has become the showpiece capital for the Chinese electric dream. In 2017 it became the first city in the world to introduce a fleet of electric buses. A year later, the government rolled out a plan to replace city taxis with electric cars.
“In Shenzhen, in almost every residential building there are two charging units. One out of 10 cars on the street are Teslas,” she says. “In China if the policy leads in one direction, technology and money goes in that direction too,” she says.
Image copyright GETTY IMAGESImage caption China has the world’s biggest market for electric vehicles
In less than a decade China’s new electric vehicle market has become the largest in the world. In 2018 more than a million electric vehicles were sold in China, more than three times the number sold in the US.
Beijing invested an estimated $50bn (£43bn) in the industry, hoping that today’s dominance of the electric vehicle market would lead to global automobile supremacy tomorrow.
And thus far the policy has been working. Over the last three years the number of Chinese electric vehicle manufacturers has tripled, with more than 400 registered nationwide.
But that breakneck expansion alarmed the government. Last year it decided to put the brakes on by withdrawing approximately half of its financial incentives for buyers.
A slump in sales quickly followed, in the last quarter of 2019 sales for electric vehicles plummeted.
Now the coronavirus has supplied a second punch.
Manufacturers have been forced to halt production lines and close dealerships in a bid to stop the spread of virus.
Overall auto sales in plunged 79% in February compared with the same month in 2019, according to figures from the China Association of Automobile Manufacturers. Sales of new energy vehicles (NEVs) fell for the eighth month in a row.
“China’s auto market was already reeling from a large drop in demand in 2019. In 2020 no carmaker has been immune to the effects of the coronavirus. That includes everyone from the oldest joint ventures producing internal combustion engine SUVs to the most innovative upstarts making connected electric vehicles,” says Scott Kennedy from the Center for Strategic and International Studies.
“The vast majority [of electric car makers] will not survive. But how long they survive and whether industry consolidation occurs through lots of mergers or bankruptcies will depend on the willingness of the government.”
Image copyright NIOImage caption The NIO EP9 is one of the fastest electric cars in the world
After listing on the New York Stock Exchange in 2018 and raising billions of dollars, NIO is perhaps the highest-profile Chinese maker of electric cars.
But in the five years since it was founded it has been beset by problems and has burned through hundreds of millions of dollars. In 2019 the company cut 2,000 jobs on the back of falling revenues. In February it announced it had signed a tentative agreement with a local government that has pledged to fund the company.
“China is a huge market growing at an immense pace. We will adjust and adapt to the market condition,” said an NIO spokesperson.
And it’s not just the car makers. China has some giant makers of components, such as batteries.
In 2018 CATL, a Chinese electric battery maker, became the official supplier of BMW’s electric cars.
Last month Tesla announced it would enter into an agreement with the company to supply batteries for Tesla’s newly built Shanghai mega-plant, capable of producing 500,000 vehicles a year.
Image copyright GETTY IMAGESImage caption China’s BYD is the one of the world’s biggest makers of electric vehicles
But despite that apparent success, analysts have their doubts.
“Chinese auto and battery technology is still not world-class. CATL and BYD are strong battery makers, but they are still somewhat behind technologically from their South Korean and Japanese counterparts. And Chinese automakers are still second-class producers even in their own country and they have barely any sales outside China,” says Mr Kennedy.
For car buyers, that question of quality hangs over China’s electric car makers.
Yi Zhi Yong, a middle-aged entrepreneur, drives a hybrid car made by Chinese manufacturer BYD. Backed by US billionaire Warren Buffett, the company was the third-largest battery-only electric car producer in the world in 2019, according to research by EV-volumes.com. Tesla sold the most, followed by another Chinese firm, BAIC.
He didn’t buy a pure electric vehicle because he is not confident about the quality.
“The quality of domestic pure electric vehicles is not good at the moment,” he says. “No domestic pure electric vehicle is worth buying yet.”
But he feels the progress made by China is a source of national pride. “In the 1990s we couldn’t imagine that China could build cars that can compete with the Japanese,” he says.
Back in Shenzhen, Han Zhu says the rolling back of government subsidies won’t put her off buying an electric vehicle. But rather than buying a Chinese marque, she has her eye on a Tesla.
“I think that they are totally different. I was super excited about Tesla but not other electric cars,” she says.
BEIJING, March 27 (Xinhua) — As the novel coronavirus disease (COVID-19) makes social distancing and working from home the new normal, leaders of the Group of 20, home to almost two-thirds of the world’s population and about 86 percent of the gross world product, convened Thursday for a virtual summit that sent a clear message: We are in the same boat.
The G20 Extraordinary Virtual Leaders’ Summit on COVID-19 was the first of its kind in the history of G20, and also the first major multilateral event attended by President Xi Jinping since the outbreak of the COVID-19.
Speaking to his colleagues via video link from Beijing, Xi put forward four proposals to cope with a situation that is “disturbing and unsettling,” calling for an all-out global war against the COVID-19 outbreak and enhancing international macro-economic policy coordination to prevent a recession.
“At such a moment, it is imperative for the international community to strengthen confidence, act with unity and work together in a collective response,” Xi said. “We must comprehensively step up international cooperation and foster greater synergy so that humanity as one could win the battle against such a major infectious disease.”
In a demonstration of the need for greater global coordination and solidarity, the G20 members were joined by leaders from invited countries including hard-hit Spain as well as multiple international organizations including the United Nations (UN), the World Health Organization (WHO), the World Trade Organization (WTO), and the International Monetary Fund (IMF).
While previous G20 summits often discussed high-stake topics like economic recession and boosting development policy, Thursday’s emergency meeting came at a time when the world is grappling with a dicey pandemic and concerns are mounting over the “black swan” event that could derail the global economy.
As China’s epidemic prevention and control are continuously improving, and the trend of an accelerated restoration of normal production and life is being consolidated and expanded, his remarks at the G20 summit are timely and of critical importance for countries now fighting at the front lines of a battle to stem the pandemic and forestalling a recession.
UNITED WE STAND
The number of COVID-19 cases worldwide topped 462,684, with 20,834 deaths as of 10 a.m. Central European Time, Thursday, according to the data kept by the WHO. The economic toll is also climbing as more businesses and trade come to a grinding halt amid massive lockdowns.
“The COVID-19 pandemic is endangering countries rich and poor, large and small, strong and weak alike,” said Wei Jianguo, vice chairman of the China Center for International Economic Exchanges and former vice minister of Commerce. “We are now at a critical juncture of fighting the pandemic and stabilizing the global economy, and the international community expects the G20 to play a leading role.”
The significance and urgency of Thursday’s meeting hark back to scenarios in the depth of the global financial crisis in 2008 when meetings of G20 finance ministers and central bank governors were raised to the level of heads of state and government for better crisis coordination. What’s different is that grave challenges facing the world today have led to warnings of a downturn even worse than in 2008.
“This pandemic will inevitably have an enormous impact on the economy,” WTO Director-General Roberto Azevedo said in a video clip posted on the website of the organization. “Recent projections predict an economic downturn and job losses that are worse than the global financial crisis a dozen years ago.”
To prevent the world economy from falling into recession, Xi said countries need to leverage and coordinate their macro policies to counteract the negative impact as the outbreak has disrupted production and demand across the globe.
“We need to implement strong and effective fiscal and monetary policies to keep our exchange rates basically stable. We need to better coordinate financial regulation to keep global financial markets stable. We need to jointly keep the global industrial and supply chains stable,” he told the summit in a speech titled “Working Together to Defeat the COVID-19 Outbreak.”
Xi’s remarks on fighting as one echoed. IMF Managing Director Kristalina Georgieva said: “We project a contraction of global output in 2020, and recovery in 2021. How deep the contraction and how fast the recovery depends on the speed of containment of the pandemic and on how strong and coordinated our monetary and fiscal policy actions are.”
“We will get through this crisis together. Together we will lay the ground for a faster and stronger recovery,” she said in a statement released after the conference call.
The important lesson in international solidarity is often forgotten when things are going fine, William Jones, Washington bureau chief of the U.S. publication Executive Intelligence Review, told Xinhua in a recent interview.
“The experience with the COVID-19 will hopefully lead to more collaborative efforts between countries and strengthen the notion of a community with a shared destiny,” he said.
As China is a key driver of global economic growth, its economic performance bears great significance on the outlook of global recovery. In a strong morale and practical boost, Xi reaffirmed China would actively contribute to the global war against COVID-19 and a stable world economy.
“Guided by the vision of building a community with a shared future for mankind, China will be more than ready to share its good practices, conduct joint research and development of drugs and vaccines, and provide assistance where it can to countries hit by the growing outbreak,” Xi said.
Xi said China will contribute to a stable world economy by continuing to advance reform and opening-up, widen market access, improve the business environment and expand imports and outbound investment, and called on all G20 members to take collective actions — cutting tariffs, removing barriers, and facilitating the unfettered flow of trade.
The country is beefing up wider opening-up to foreign investment. Revision of the negative list on foreign investment is underway as part of the plan to improve business environment and expand the catalog of industries where foreign investment is encouraged.
New editions of the list will probably be released in May, expanding market access of the tertiary sector, such as health care, aged service, finance, transportation, logistics, tourism, education and training and value-added services of telecommunications, said Zhang Fei with the Chinese Academy of International Trade and Economic Cooperation.
Noting that a global solution is needed to address the global challenge brought about by the pandemic, Azevedo said cross-border trade and investment flows have a role to play in efforts to combat the COVID-19 pandemic and will be vital for fostering a stronger recovery once the medical emergency subsides.
“No country is self-sufficient, no matter how powerful or advanced it may be. Trade is what allows for the efficient production and supply of basic goods and services, medical supplies and equipment, food and energy that we all need,” he said.
Chinese Vice Premier Han Zheng, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, addresses a teleconference on the construction of major projects and stabilizing investment in Beijing, capital of China, March 26, 2020. (Xinhua/Ding Lin)
BEIJING, March 26 (Xinhua) — Chinese Vice Premier Han Zheng on Thursday called for efforts to advance the construction of major projects and give full play to investment in stabilizing economic growth.
Accurate measures should be taken to solve the problems of labor shortage, transportation and supply of raw materials to accelerate the normal operation of key projects, Han said while addressing a teleconference on the construction of major projects and stabilizing investment.
Han said financial support such as local special bonds should prioritize key areas and major projects. The construction of “new infrastructure” projects such as 5G networks should be strongly encouraged to ramp up new business modes such as the digital economy.
He also urged efforts to ensure the use of land and sea of key projects, streamline project approval procedures and strengthen project management.
More work should be done to implement key foreign-funded projects, speed up the introduction of policies for further opening-up and continue optimizing the business environment, he added.
NEW YORK (Reuters) – The number of U.S. coronavirus infections climbed above 82,000 on Thursday, surpassing the national tallies of China and Italy, as New York, New Orleans and other hot spots faced a surge in hospitalizations and looming shortages of supplies, staff and sick beds.
With medical facilities running low on ventilators and protective masks and hampered by limited diagnostic testing capacity, the U.S. death toll from COVID-19, the respiratory disease caused by the virus, rose beyond 1,200.
“Any scenario that is realistic will overwhelm the capacity of the healthcare system,” New York Governor Andrew Cuomo told a news conference. He described the state’s projected shortfall in ventilators – machines that support the respiration of people have cannot breathe on their own – as “astronomical.”
“It’s not like they have them sitting in the warehouse,” Cuomo added. “There is no stockpile available.”
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At least one New York City hospital, New York-Presbyterian/Columbia University Medical Center in Manhattan, has begun a trial of sharing single ventilators between two patients.
While New York was the coronavirus epicenter in the United States this week, the next big wave of infections appeared headed for Louisiana, where demand for ventilators has already doubled. In New Orleans, the state’s biggest city, Mardi Gras celebrations late last month are believed to have fueled the outbreak.
Louisiana Governor John Bel Edwards said New Orleans would be out of ventilators by April 2 and potentially out of bed space by April 7 “if we don’t flatten the infection curve soon.”
“It’s not conjecture, it’s not some flimsy theory,” Edwards told a press conference. “This is what is going to happen.”
About 80% of Louisiana’s intensive care patients are now on breathing machines, up from the normal rate of 30-40%, said Warner Thomas, chief executive of Ochsner Health System, the state’s hospital group.
Scarcities of protective masks, gloves, gowns and eyewear for doctors and nurses – reports abound of healthcare workers recycling old face masks, making their own or even using trash bags to shield themselves – have emerged as a national problem.
“Our nurses across the country do not have the personal protective equipment that is necessary to care for COVID patients, or any of their patients,” Bonnie Castillo, head of the largest U.S. nurses union, National Nurses United, told MSNBC.
In an ominous milestone for the United States as a whole, at least 82,153 people nationwide were infected as of Thursday, according to a Reuters tally from state and local public health agencies. China, where the global pandemic emerged late last year, had the second highest number of cases, 81,285, followed by Italy with 80,539.
At least 1,204 Americans have died from COVID-19, which has proven especially dangerous to the elderly and people with underlying chronic health conditions, Reuters’ tally showed.
MORE BEDS NEEDED
For New York state, Cuomo said a key goal was rapidly to expand the number of available hospital beds from 53,000 to 140,000.
New York hospitals were racing to comply with Cuomo’s directive to increase capacity by at least 50%. At Mount Sinai Hospital’s Upper East Side location, rooms were being constructed within an atrium to open up more space for beds.
At Elmhurst Hospital in New York’s borough of Queens, about a hundred people, many wearing masks with their hoods pulled up, lined up behind barriers outside the emergency room entrance, waiting to enter a tent to be screened for the coronavirus.
The city coroner’s office has posted refrigerated trucks outside Elmhurst and Bellevue Hospital to temporarily store bodies of the deceased.
Deborah White, vice chair of emergency medicine at Jack D. Weiler Hospital in the city’s Bronx borough, said 80% of its emergency room visits were patients with coronavirus-like symptoms.
A ventilator shortfall and surge in hospitalizations has already raised the prospect of rationing healthcare.
Asked about guidelines being drafted on how to allocate ventilators to patients in case of a shortage, New Jersey Governor Phil Murphy told reporters such bioethical discussions “haunted him” but were unavoidable.
Outside New York and New Orleans, other hot spots appeared to be emerging around the country, including Detroit.
Brandon Allen, 48, was buying groceries in Detroit for his 72-year-old mother, who has tested positive and was self-quarantining at home.
“It’s surreal,” Allen said. “People around me I know are dying. I know of a couple people who have died. I know a couple of people who are fighting for their lives. Everyday you hear of another person who has it.”
RECORD UNEMPLOYMENT CLAIMS
Desperate to slow virus transmissions by limiting physical contact among people, state and local governments have issued stay-at-home orders covering about half the U.S. population. A major side effect has been the strangulation of the economy, and a wave of layoffs.
The U.S. Labor Department reported Thursday the number of Americans filing claims for unemployment benefits last week soared to a record of nearly 3.28 million – almost five times the previous weekly peak of 695,000 during the 1982 recession.
Dr. Anthony Fauci, director of the U.S. National Institute of Allergy and Infectious Diseases, said warmer weather may help tamp down the U.S. outbreak as summer approaches, though the virus could re-emerge in the winter.
“We hope we get a respite as we get into April, May and June,” Fauci said on WNYC public radio.
Washington state Governor Jay Inslee said he may extend a stay-at-home order tentatively set to expire April 6, encouraged by what he called a “very modest improvement” in the Seattle area.
Washington experienced the first major U.S. outbreak of COVID-19 and has been among the hardest-hit states. As of Thursday the state reported about 3,200 cases and 147 deaths.
In California’s Coachella Valley, a region rife with retirees who are especially vulnerable, 25 members of the state’s National Guard helped a non-profit distribute food to people stuck in their homes, as most of the regular volunteers are senior citizens.
More than 10,000 troops have been deployed in 50 states to provide humanitarian aid during the pandemic.
Image copyright GETTY IMAGESImage caption Many Indians face losing their income and some say they could starve
India has announced a $22bn (£19bn) bailout for the country’s poor to help counter the economic effects of the Covid-19 outbreak.
“We don’t want anyone to remain hungry, and we don’t want anyone to remain without money in their hands,” finance minister Nirmala Sitharaman said.
The package, which includes free food and cash transfers, was for “those who need immediate help”, she said.
She also said health workers would get medical insurance of up to $66,500.
Correspondents point out that this amounts to just 1% of India’s GDP – in stark contrast to the US and Singapore which are spending about 10% of their GDP on similar packages.
However, this could be just stage one, with similar packages set to be announced later, they added.
India’s economy was already in the midst of a severe slowdown before the country went into lockdown, shutting workplaces, factories and affecting millions of daily-wage and informal workers.
They form India’s vast informal sector, which constitutes a large part of its workforce. The lockdown and social distancing have left many of them with no viable means of getting any income, and many have expressed fears that they could starve.
Growth had slumped to 4.7% last month – the slowest pace in years – as a steep drop in manufacturing affected overall economic health.
Barclays said the total shutdown cost to India would be around $120bn, or 4% of the country’s GDP.
Ms Sitharaman, who is also the head of an economic task force announced by the prime minister, said that workers under an employment guarantee scheme would get a wage increment, and that recipients of other welfare schemes would also get benefits, like free gas cylinders instead of just subsidised ones.
BEIJING (Reuters) – China’s Hubei province where the coronavirus pandemic originated will lift travel restrictions on people leaving the region as the epidemic there eases, but other regions will tighten controls as new cases double due to imported infections.
The Hubei Health Commission announced it would lift curbs on outgoing travellers starting March 25, provided they had a health clearance code.
The provincial capital Wuhan, where the virus first appeared and which has been in total lockdown since since Jan. 23, will see its travel restrictions lifted on April 8.
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However, the risk from overseas infections appears to be on the rise, prompting tougher screening and quarantine measures in major cities such as the capital Beijing.
China had 78 new cases on Monday, the National Health Commission said, a two-fold increase from Sunday. Of the new cases, 74 were imported infections, up from 39 imported cases a day earlier.
The Chinese capital Beijing was the hardest-hit, with a record 31 new imported cases, followed by southern Guangdong province with 14 and the financial hub of Shanghai with nine. The total number of imported cases stood at 427 as of Monday.
Only four new cases were local transmissions. One was in Wuhan which had not reported a new infection in five days.
Wuhan residents will soon be allowed to leave with a health tracking code, a QR code, which will have an individual’s health status linked to it.
In other parts of the country, authorities have continued to impose tougher screening and quarantine and have diverted international flights from Beijing to other Chinese cities, but that has not stemmed the influx of Chinese nationals, many of whom are students returning home from virus-hit countries.
Beijing’s city government tightened quarantine rules for individuals arriving from overseas, saying on Tuesday that everyone entering the city will be subject to centralised quarantine and health checks.
The southern city of Shenzhen said on Tuesday it will test all arrivals and the Chinese territory of Macau will ban visitors from the mainland, Hong Kong and Taiwan.
The number of local infections from overseas arrivals – the first of which was reported in the southern travel hub of Guangzhou on Saturday – remains very small.
On Monday, Beijing saw its first case of a local person being infected by an international traveller arriving in China. Shanghai reported a similar case, bringing the total number of such infections to three so far.
CONCERNS ABOUT NEW WAVE OF INFECTIONS
The rise in imported cases and the lifting of restrictions in some cities to allow people to return to work and kickstart the battered Chinese economy has raised concerns of a second wave of infections.
A private survey on Tuesday suggested that a 10-11% contraction in first-quarter gross domestic product in the world’s second largest economy “is not unreasonable”.
The epidemic has hammered all sectors of the economy – from manufacturing to tourism. To persuade businesses to reopen, policymakers have promised loans, aids and subsidies.
In the impoverished province of Gansu, government officials are each required to spend at least 200 yuan (24.31 pounds) a week to spur the recovery of the local catering industry.
The official China Daily warned in an editorial on Tuesday that maintaining stringent restrictions on people’s movements would “now do more harm than good”.
SEOUL/TOKYO (Reuters) – With more employees working from home to help slow the spread of the coronavirus, demand is surging for laptops and network peripherals as well as components along the supply chain such as chips, as companies rush to build virtual offices.
Many firms have withdrawn earnings forecasts, anticipating a drop in consumer demand and economic slump, but performance at electronics retailers and chipmakers is hinting at benefits from the shift in work culture.
Over the past month, governments and companies globally have been advising people to stay safe indoors. Over roughly the same period, South Korea – home of the world’s biggest memory chip maker, Samsung Electronics Co Ltd – on Monday reported a 20% jump in semiconductor exports.
Pointing to further demand, nearly one in three Americans have been ordered to stay home, while Italy – where deaths have hit 5,476 – has banned internal travel. Worldwide, the flu-like virus has infected over 300,000 people and led to almost 15,000 deaths since China first reported the outbreak in December.
“With more people working and learning from home during the outbreak, there has been rising demand for internet services … meaning data centres need bigger pipes to carry the traffic,” said analyst Park Sung-soon at Cape Investment & Securities.
A South Korean trade ministry official told Reuters that cloud computing has boosted sales of server chips, “while an increase in telecommuting in the United States and China has also been a main driver of huge server demand.”
In Japan, laptop maker Dynabook reported brisk demand which it partly attributed to companies encouraging teleworking. Rival NEC Corp said it has responded to demand with telework-friendly features such as more powerful embedded speakers.
Australian electronics retailer JB Hifi Ltd also said it saw demand “acceleration” in recent weeks from both commercial and retail customers for “essential products they need to respond to and prepare” for the virus, such as devices that support remote working as well as home appliances.
CHINA LEAD
China is leading chip demand, analysts said, as cloud service providers such as Alibaba Group Holding Ltd, Tencent Holdings Ltd and Baidu Inc quickly responded to the government’s effort to contain the virus.
“Cloud companies opened their platforms, allowing new and existing customers to use more resources for free to help maintain operations,” said analyst Yih Khai Wong at Canalys.
“This set the precedent for technology companies around the world that offer cloud-based services in their response to helping organisations affected by coronavirus.”
China’s cloud infrastructure build-up has helped push up chip prices, with spot prices of DRAM chips rising more than 6% since Feb. 20, showed data from price tracker DRAMeXchange.
UBS last week forecast average contract prices of DRAM chips to rise as much as 10% in the second quarter from the first, led by a more than 20% jump in server chips.
It said it expects DRAM chips to be modestly under supplied until the third quarter of 2021, with demand from server customers rising 31% both in 2020 and 2021.
SUPPLY DISRUPTION
Concerns over supply disruption has also contributed to a price rise.
“You’ve got lots of OEMs and systems integrators in the global market who have intense demand for memory now,” said Andrew Perlmutter, chief strategy officer at ITRenew, a company that buys and reworks used data centre equipment for resale.
“Nobody is shutting down their factories – it is still production as normal – but people worry about memory supply in particular, so they want to get out ahead of production.”
About 69% of electronics manufacturers have flagged possible supplier delays averaging three weeks, showed a poll on March 13 by industry trade group IPC International.
Half of those polled expected business to normalise by July, and nearly three-quarters pointed to at least October.
The country’s only new infections confirmed in the past two days have been imported from overseas, suggesting containment measures worked
But there are still likely to be infected people with mild or no symptoms, and questions over how the data was compiled, experts say
A makeshift hospital in Wuhan, converted from a sports arena, closed on Sunday after its last patients were discharged. Photo: Xinhua
China reached an apparent milestone this week in the fight against the Covid-19 pandemic, announcing zero new non-imported infections on Thursday and Friday, but experts said the figures needed to be treated with caution.
After reporting thousands of daily new infections for much of February, China had a sharp decline this month while the wider world experienced the opposite trend as the coronavirus spread.
As China closes makeshift coronavirus hospitals in the outbreak’s initial epicentre of Wuhan because of a lack of patients, and eases some quarantine restrictions in the city and the broader Hubei province, there is consensus that its unprecedented measures changed the direction of the epidemic, offering hope for other countries.
But there are concerns over whether China’s rock-bottom case numbers reflect the full picture in the country. The high incidence of mild cases of Covid-19 is one reason, health experts said, warning that there could be infected people who were not counted but still able to spread the disease.
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“It is important that China is doing a good job testing and screening throughout the country to ensure that there are no pockets of infection remaining,” virologist Jeremy Rossman, of Britain’s University of Kent, said, adding that the news was “exciting” but needed to be “treated with caution”.
“With many of these cases having mild to no symptoms, ensuring that the whole country remains prepared and is actively looking for new cases is essential,” he said. “While it is possible there are no new cases, it is also very possible that somewhere in the country there are mildly infected people.”
Missing mild cases, and those infected but showing no symptoms, are a “legitimate concern”, according to Xi Chen, an assistant professor at the Yale School of Public Health.
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“Eighty per cent of cases have mild symptoms, so zero cases is a milestone, but not the end of the epidemic in China,” he said. Patients with mild symptoms or who are asymptomatic can still spread the disease to others, he added, and this needed to be monitored carefully in the coming weeks.
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China has come under scrutiny for how it treats asymptomatic cases. The National Health Commission excludes patients who test positive yet show no symptoms from its number of confirmed cases, although it monitors those cases when it knows of them.
The extent to which asymptomatic carriers contribute to spreading the disease is yet to be understood by scientists.
In addition, Hubei province in mid-February changed how it classified its confirmed cases, which caused a surge in infection numbers. This decision, which allowed doctors to diagnose a person by a clinical examination, not only by a positive laboratory test, was later reversed, leaving confusion about the true extent of the disease.
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Other commentators said it could not be ignored that political considerations may play a part as China looks to highlight its communist governance model and portray itself as a global leader in combating the disease.
“We are in the midst of the most intensive propaganda operation of the [Communist] Party state in living memory, in trying to project its success in dealing with the virus,” Steve Tsang, director of the University of London’s SOAS China Institute, said. “That narrative requires statistical backup.
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“I’m not saying [the zero number] is necessarily wrong; I’m simply saying we don’t know. What we do know is that there is now a political imperative for the statistics to be [low], and now we have statistics that serve the political imperative.”
Data can be trusted when it comes with transparency about how it was collected, so that it can be independently evaluated, Tsang said.
Nis Gruenberg, an analyst with Berlin-based independent think tank the Mercator Institute for China Studies, said that the numbers could be viewed as an “indicator” of a reduction of cases in China.
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“Some [Western critics] have been saying China and its system are ill-equipped to handle this outbreak, and now the Chinese government is trying to invert that argument and say, ‘Look at you, you are not doing it well enough,’” Gruenberg said.
The message from the Chinese government that it has succeeded in containing the virus may “politicise” the figures and is a potential driver for under-reporting around the country, according to Gruenberg.
“If history is any guide in China then there is a massive history of under-reporting for various reasons, both within the system and internationally,” he said. “I’m sceptical that this is the true number, or that anyone really knows the true number.”
LONDON/BEIJING (Reuters) – The world’s wealthiest nations poured unprecedented aid into the traumatized global economy on Thursday as coronavirus cases ballooned in the current epicentre Europe even as they waned at the pandemic’s point of origin, China.
With almost 219,000 infections and more than 8,900 deaths so far, the epidemic has stunned the world and drawn comparisons with painful periods such as World War Two, the 2008 financial crisis and the 1918 Spanish flu.
“This is like an Egyptian plague,” said Argentinian hotelier Patricia Duran, who has seen bookings dry up for her two establishments near the famous Iguazu Falls.
“The hotels are empty – tourist activity has died.”
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Tourism and airlines have been particularly battered, as the world’s citizens hunker down to minimize contact and curb the spread of the flu-like COVID-19. But few sectors have been spared by a crisis threatening lengthy global recession.
On markets, investors have dumped assets everywhere, many switching to U.S. dollars as a safe haven. Other currencies hit historic lows, with Britain’s pound near its weakest since 1985.
Policymakers in the United States, Europe and Asia have slashed interest rates and opened liquidity taps to try to stabilise economies hit by quarantined consumers, broken supply chains, disrupted transport and paralysed businesses.
The virus, thought to have originated from wildlife on mainland China late last year, has jumped to 172 other nations and territories with more than 20,000 new cases reported in the past 24 hours – a new daily record.
Cases in Germany, Iran and Spain rose to over 12,000 each. An official in Tehran tweeted that the coronavirus was killing one person every 10 minutes.
LONDON LOCKDOWN?
Britain, which had sought to take a gradual approach to containment, was closing dozens of underground stations in London and ordering schools shut from Friday.
Some 20,000 military personnel were on standby to help and Queen Elizabeth was due to leave Buckingham Palace in the capital for her ancient castle at Windsor. Britain has reported 104 deaths and 2,626 cases, but scientific advisers say the real number of infections may be more than 50,000.
Italian soldiers transported corpses overnight from an overwhelmed cemetery in Europe’s worst-hit nation where nearly 3,000 people have died. Germany’s military was also readying to help despite national sensitivities over its deployment dating back to the Nazi era.
Supermarkets in many countries were besieged with shoppers stocking up on food staples and hygiene products. Some rationed sales and fixed special hours for the elderly.
Solidarity projects were springing up in some of the world’s poorest corners. In Kenya’s Kibera slum, for example, volunteers with plastic drums and boxes of soap on motorbikes set up handwashing stations for people without clean water.
Russia reported its first coronavirus death on Thursday.
Amid the gloom, China provided a ray of hope, as it reported zero new local transmissions in a thumbs-up for its draconian containment policies since January. Imported cases, however, surged, accounting for all 34 new infections.
The United States, where President Donald Trump had initially played down the coronavirus threat, saw infections close in on 8,000 and deaths reach at least 151.
Trump has infuriated Beijing’s communist government by rebuking it for not acting faster and drawn accusations of racism by referring to the “Chinese virus”.
“EXTRAORDINARY TIMES”
In a bewildering raft of financial measures around the world, the European Central Bank launched new bond purchases worth 750 billion euros ($817 billion). That brought some relief to bond markets and also halted European shares’ slide, though equities remained shaky elsewhere.
“Extraordinary times require extraordinary action,” ECB President Christine Lagarde said, amid concerns that the strains could tear apart the euro zone as a single currency bloc.
The U.S. Federal Reserve rolled out its third emergency credit programme in two days, aimed at keeping the $3.8 trillion money market mutual fund industry functioning.
China was to unleash trillions of yuan of fiscal stimulus and South Korea pledged 50 trillion won ($39 billion).
The desperate state of industry was writ large in Detroit, where the big three automakers – Ford Motor Co (F.N), General Motors Co (GM.N) and Fiat Chrysler Automobiles NV (FCHA.MI) (FCAU.N) – were shutting U.S. plants, as well as factories in Canada and Mexico.
With some economists fearing prolonged pain akin to the 1930s Great Depression but others anticipating a post-virus bounceback, gloomy data and forecasts abounded.
In one of the most dire calls, J.P. Morgan economists forecast the Chinese economy to drop more than 40% this quarter and the U.S. economy to shrink 14% in the next.
There was a backlash against conspiracy theories and rumours circulating on social media, with Morocco arresting a woman who denied the disease existed.
And in Brazil, where President Jair Bolsonaro initially labelled the virus “a fantasy”, more members of the political elite fell ill. At night, housebound protesters banged pots and pans, shouting “Bolsonaro out!” from their windows.
Image copyright NATIONAL MUSEUM OF HEALTH AND MEDICINEImage caption The 1918 flu pandemic is believed to have infected a third of the population worldwide
All interest in living has ceased, Mahatma Gandhi, battling a vile flu in 1918, told a confidante at a retreat in the western Indian state of Gujarat.
The highly infectious Spanish flu had swept through the ashram in Gujarat where 48-year-old Gandhi was living, four years after he had returned from South Africa. He rested, stuck to a liquid diet during “this protracted and first long illness” of his life. When news of his illness spread, a local newspaper wrote: “Gandhi’s life does not belong to him – it belongs to India”.
Outside, the deadly flu, which slunk in through a ship of returning soldiers that docked in Bombay (now Mumbai) in June 1918, ravaged India. The disease, according to health inspector JS Turner, came “like a thief in the night, its onset rapid and insidious”. A second wave of the epidemic began in September in southern India and spread along the coastline.
The influenza killed between 17 and 18 million Indians, more than all the casualties in World War One. India bore a considerable burden of death – it lost 6% of its people. More women – relatively undernourished, cooped up in unhygienic and ill-ventilated dwellings, and nursing the sick – died than men. The pandemic is believed to have infected a third of the world’s population and claimed between 50 and 100 million lives.
Gandhi and his febrile associates at the ashram were lucky to recover. In the parched countryside of northern India, the famous Hindi language writer and poet, Suryakant Tripathi, better known as Nirala, lost his wife and several members of his family to the flu. My family, he wrote, “disappeared in the blink of an eye”. He found the Ganges river “swollen with dead bodies”. Bodies piled up, and there wasn’t enough firewood to cremate them. To make matters worse, a failed monsoon led to a drought and famine-like conditions, leaving people underfed and weak, and pushed them into the cities, stoking the rapid spread of the disease.
Image copyright PRINT COLLECTORImage caption Bombay was one of the worst hit cities by the 1918 pandemic
To be sure, the medical realities are vastly different now. Although there’s still no cure, scientists have mapped the genetic material of the coronavirus, and there’s the promise of anti-viral drugs, and a vaccine. The 1918 flu happened in the pre-antibiotic era, and there was simply not enough medical equipment to provide to the critically ill. Also western medicines weren’t widely accepted in India then and most people relied on indigenous medication.
Yet, there appear to be some striking similarities between the two pandemics, separated by a century. And possibly there are some relevant lessons to learn from the flu, and the bungled response to it.
The outbreak in Bombay, an overcrowded city, was the source of the infection’s spread back then – this something that virologists are fearing now. With more than 20 million people, Bombay is India’s most populous city and Maharashtra, the state where it’s located, has reported the highest number of coronivirus cases in the country.
By early July in 1918, 230 people were dying of the disease every day, up nearly three times from the end of June. “The chief symptoms are high temperature and pains in the back and the complaint lasts three days,” The Times of India reported, adding that “nearly every house in Bombay has some of its inmates down with fever”. Workers stayed away from offices and factories. More Indian adults and children were infected than resident Europeans. The newspapers advised people to not spend time outside and stay at home. “The main remedy,” wrote The Times of India, “is to go to bed and not worry”. People were reminded the disease spread “mainly through human contact by means of infected secretions from the nose and mouths”.
“To avoid an attack one should keep away from all places where there is overcrowding and consequent risk of infection such as fairs, festivals, theatres, schools, public lecture halls, cinemas, entertainment parties, crowded railway carriages etc,” wrote the paper. People were advised to sleep in the open rather than in badly ventilated rooms, have nourishing food and get exercise.
“Above all,” The Times of India added, “do not worry too much about the disease”.
Image copyright PRINT COLLECTOR
Colonial authorities differed over the source of infection. Health official Turner believed that the people on the docked ship had brought the fever to Bombay, but the government insisted that the crew had caught the flu in the city itself. “This had been the characteristic response of the authorities, to attribute any epidemic that they could not control to India and what was invariably termed the ‘insanitary condition’ of Indians,” observed medical historian Mridula Ramanna in her magisterial study of how Bombay coped with the pandemic.
Later a government report bemoaned the state of India’s government and the urgent need to expand and reform it. Newspapers complained that officials remained in the hills during the emergency, and that the government had thrown people “on the hands of providence”. Hospital sweepers in Bombay, according to Laura Spinney, author of Pale Rider: The Spanish Flu of 1918 and How It Changed the World, stayed away from British soldiers recovering from the flu. “The sweepers had memories of the British response to the plague outbreak which killed eight million Indians between 1886 and 1914.”
Image copyright PRINT COLLECTORImage caption The hospitals in Bombay were overwhelmed by patients
“The colonial authorities also paid the price for the long indifference to indigenous health, since they were absolutely unequipped to deal with the disaster,” says Ms Spinney. “Also, there was a shortage of doctors as many were away on the war front.”
Eventually NGOs and volunteers joined the response. They set up dispensaries, removed corpses, arranged cremations, opened small hospitals, treated patients, raised money and ran centres to distribute clothes and medicine. Citizens formed anti-influenza committees. “Never before, perhaps, in the history of India, have the educated and more fortunately placed members of the community, come forward in large numbers to help their poorer brethren in time of distress,” a government report said.
Now, as the country battles another deadly infection, the government has responded swiftly. But, like a century ago, civilians will play a key role in limiting the virus’ spread. And as coronavirus cases climb, this is something India should keep in mind.
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