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.
BEIJING, April 23 (Xinhua) — China decided to donate another 30 million U.S. dollars to the World Health Organization (WHO) in support of global efforts to fight COVID-19 and the construction of public health systems in developing countries, a Foreign Ministry spokesperson said here Thursday.
Spokesperson Geng Shuang told a news briefing that the WHO, led by Director-General Tedros Adhanom Ghebreyesus, had actively fulfilled its duties with objective, science-based and fair position and played an important role in assisting countries in responding to the outbreak and boosting international cooperation on COVID-19.
Geng said to support the WHO is to defend the principles of multilateralism and safeguard the status and authority of the United Nations at a crucial time of the battle against the pandemic, adding that the virus is the common enemy of humankind, and the international community can only defeat it through unity and cooperation.
In March, China donated 20 million dollars to the WHO to support the global fight against COVID-19.
The spokesperson said China’s donations to the WHO reflected the support and trust of the Chinese government and people in the organization, and China also made its own contributions to global public health and the fight against the pandemic.
“China will continue to stand in solidarity and render mutual assistance with other countries to jointly overcome the pandemic, safeguard regional and global public health and build a community with a shared future for mankind,” he said.
SHENYANG, April 23 (Xinhua) — With trucks standing bumper to bumper and large cranes loading containers on the train, work returned to normal at a logistics base in northeast China’s Liaoning Province.
The base, where the China-Europe freight trains are set to depart in Shenyang, the provincial capital, has seen stable departures since early April as the novel coronavirus epidemic ebbs away.
With the global supply chain being affected by restrictions in air, land, and port travel due to the global pandemic, China-Europe railway has been playing a more important role, experts say.
“The train was operated by staff in different sections, which means it does not require cross-border personnel health inspections, giving it advantages during the pandemic,” said Shan Jing, an industry insider who wrote a book on China-Europe freight trains.
In March, a total of 809 China-Europe freight trains carrying 73,000 containers were sent across China. Both numbers hit a monthly record.
At the Shenyang logistics base, trains depart to travel through Russia, Belarus, Poland and finally reach Germany in around 18 days. As of April 13, a total of 130 trains carrying 11,200 standard containers had departed from the base.
“The province sends a stable number of five trains each week,” said He Ruofan, a business manager with the Shenyang branch of China Railway Container Transport Corp., Ltd, operator of the trains.
The stable operation has made the route a top choice for many Chinese enterprises, said Yao Xiang, a manager with logistics group Sinotrans’s northeast company.
“Many shipping routes have been canceled, and the rest are more and more expensive amid the epidemic,” said Yao, noting the price for air cargo surged 5 to 10 times the normal price as flights decreased from China to Europe.
With increasing departing trains, returning trains on the route have also been increasing, Yao said.
Among the 130 trains that have been sent from the Shenyang base so far this year, 33 returned, carrying construction materials, car parts, mechanical equipment, and daily products.
“These goods provide supplies to large companies like BMW and Michelin’s Shenyang factories,” Yao said.
Medical supplies have also been sent to hard-hit Europe to fight against the coronavirus pandemic.
As of April 18, a total of 448,000 pieces of medical supplies weighing 1,440 tonnes had been sent to European countries via the route, according to China State Railway Group Company, Ltd.
“China-Europe freight trains have shown great service capabilities during the epidemic,” said Shan, the industry insider. “It serves as a new choice for European enterprises, and I believe more people will come to realize the importance of the route.”
(Reuters) – Consumer goods giant Unilever Plc (ULVR.L) (UNA.AS) withdrew its full-year forecast on Thursday, saying the hit from lockdowns in China and India, as well as lower ice cream sales, offset strong U.S. and European sales of cleaning items, sending its shares down 5%.
Underlying sales across Asia, the Middle East and Russia, fell 3.7%, as lockdowns in the quarter restricted restaurant visits and shopping in China and led to factory shutdowns that halted production in India.
In Europe, Turkey and Latin America, Unilever’s 3 billion euro ice cream business was hit by national efforts to prevent the spread of the coronavirus, deterring distributors in holiday destinations from buying stock.
“Many of our classic out-of-home retailers like leisure sites, travel hubs, beaches and tourist destinations were closed,” Chief Financial Officer Graeme Pitkethly said on a call.
These factors countered increased sales in the United States and Europe, where consumers stocked up on laundry detergents, Domestos bleach, Cif cleaning products and personal hygiene items, as the virus spread to those regions.
Overall, first-quarter turnover rose 0.2% to 12.40 billion euros ($13.42 billion), slightly missing the estimate of 12.77 billion euros based on analysts polled by Factset.
The company withdrew its sales performance targets for the year, which forecast growth at the lower end of a 3%-5% range, saying it could not “reliably assess the impact” of the virus, , although it said it would still pay its interim dividend.
Jefferies analysts said investors would be asking why Unilever “has apparently been hit so badly, and early, by the negative impacts of COVID-19 without seeing much of the positives. We expect a difficult day for the shares.”
Shares in Unilever, which joins spirits maker Diageo (DGE.L) and other consumer goods companies in withdrawing guidance, was down 5.5% at 4,008 pence in early trading.
The Anglo-Dutch company’s report follows results from larger U.S. rival Procter & Gamble (PG.N), which last week said its U.S. sales had seen their biggest rise in decades.
Unilever also said underlying sales grew strongly in North America, rising 4.8% as shoppers stocked up on personal hygiene products, Knorr soups and Hellmann’s dressings.
In Europe, sales growth was led by Germany and Britain, although prices across the region fell.
“We are adapting to new demand patterns and are preparing for lasting changes in consumer behaviour, in each country, as we move out of the crisis and into recovery,” Unilever Chief Executive Alan Jope said in a statement.
The company said it was directing a chunk of its 500 million euro package to support suppliers towards its ice cream distribution partners, which Pitkethly called the “jewel” in its supplier relationships.
BENGALURU (Reuters) – The Indian economy is likely to suffer its worst quarter since the mid-1990s, hit by the ongoing lockdown imposed to stem the spread of coronavirus, according to a Reuters poll, which predicted a mild and gradual recovery.
Over 2.6 million people tmsnrt.rs/3aIRuz7 have been infected by the coronavirus worldwide and more than 180,000 have died. Business and household lockdowns have disrupted supply chains globally, bringing growth to a halt.
The April 17-22 Reuters poll predicted the economy expanded at an annual pace of 3.0% last quarter but will shrink 5.2% in the three months ending in June, far weaker than expectations in a poll published last month for 4.0% and 2.0% growth, respectively.
The predicted contraction would be the first – under any gross domestic product calculation, which has changed a few times – since the mid-1990s, when official reporting for quarterly data began.
“The extended lockdown until early May adds further downside risk to our view of a 5% year-on-year GDP fall in the current quarter, the worst in the last few decades,” said Prakash Sakpal, Asia economist at ING.
“We don’t consider economic stimulus as strong enough to position the economy for a speedy recovery once the pandemic ends,” he said.
(Graphic: Reuters poll graphic on coronavirus impact on the Indian economy IMAGE link: here)
The Indian government announced a spending package of 1.7 trillion rupees in March to cushion the economy from the initial lockdown, which has been extended until May 3.
In an emergency meeting last week, the Reserve Bank of India cut its deposit rate again, after reducing it on March 27 and lowering the main policy rate by 75 basis points. It also announced another round of targeted long-term repo operations to ease liquidity.
But even with those measures, 40% of economists, or 13 of 32 – who provided quarterly figures – predicted an outright recession this year. Only one had expected a recession last month.
In the worst case, a smaller sample of respondents predicted, the economy would contract 9.3% in the current quarter. That compares with 0.5% growth in the previous poll’s worst-case forecast in late March, underscoring how rapidly the outlook has deteriorated.
The latest poll’s consensus view still shows the economy recovering again slowly in the July-September quarter, growing 0.8%, then 4.2% in October-December and 6.0% in the final quarter of the fiscal year, in early 2021.
But that compares with considerably more optimistic near-term forecasts of 3.3%, 5.0% and 5.6%, respectively, in the previous poll.
“A rebound in economic activity following the disruption is expected, but the low starting point of growth implies a gradual recovery,” said Upasana Chachra, chief India economist at Morgan Stanley.
“Indeed, before disruptions related to COVID-19, growth was slowing, with domestic issues of risk aversion in financial sector … (and) those concerns will likely stay after the COVID-19 disruptions have passed unless the policy response is much larger than expected,” she said.
The unemployment rate has tripled to 23.8% since the lockdown started on March 25, according to the Centre for Monitoring Indian Economy, a Mumbai-based research firm.
The Indian economy was now forecast to expand 1.5% in the fiscal year ending on March 31, 2021 – the weakest since 1991 and significantly lower than 3.6% predicted in late March. It probably grew 4.6% in the fiscal year that just ended.
Under a worst-case scenario, the median showed the economy shrinking 1.0% this fiscal year. That would be the first officially reported economic contraction for a 12-month period since GDP was reported to have contracted for calendar year 1979.
“Unless fiscal policy is also loosened aggressively alongside monetary policy, there is a big risk the drastic economic slowdown currently underway morphs into an annual contraction in output and that the recovery is hampered,” said Shilan Shah, senior India economist at Capital Economics.
All 37 economists who answered a separate question unanimously said the RBI would follow up with more easing, including lowering the repo and reverse repo rates and expanding the new long-term loans programme.
The RBI was expected to cut its repo rate by another 40 basis points to 4.00% by the end of this quarter. Already lowered twice over the past month by a cumulative 115 basis points, the reverse repo rate was forecast to be trimmed by another 25 points by end-June to 3.50%.
BEIJING (Reuters) – China will cut its subsidies on new energy vehicles (NEV) by 10% this year, and will expand government purchases of NEVs, the finance ministry said on Thursday.
China will in principle cut such subsidies by 20% in 2021 and 30% in 2022, the finance ministry said in a statement. However, it will not cut subsidies on qualified new energy commercial vehicles earmarked for public purposes this year.
Under the plan, China would extend subsidies for NEV purchases to 2022, rather than ending them this year, and extend their purchase tax exemption for two years.
China will slightly lift the requirements for the driving range and power efficiency of cars qualified for the subsidies, the statement said, adding authorities will support the sales of cars with swappable batteries, a technology that has been pursued by Chinese electric vehicle makers Nio Inc (NIO.N) and BAIC BluePark (600733.SS).
Only passenger cars cheaper than 300,000 yuan (34,330.23 pounds) will be offered subsidies, it said. The price is higher than starting price of Tesla Inc’s (TSLA.O) China-made Model 3 sedans.
China also said authorities will give priority to purchase new energy vehicles for government use but did not give further details.
The new policy is effective from April 23. NEVs include battery-powered electric, plug-in hybrid and hydrogen fuel-cell vehicles.
China has set an aggressive goal for NEVs to account for a fifth of auto sales by 2025 compared with the current 5%, as it seeks to reduce pollution and cultivate homegrown champions.
Sales of NEVs, however, contracted for a ninth month in a row in March and were down over 50% from a year earlier, according to data from the China Association of Automobile Manufacturers (CAAM).
Documentary puts China’s literary hero into context: there is Dante, there’s Shakespeare, and there’s Du Fu
Theatrical legend Sir Ian McKellen brings glamour to beloved verses in British documentary
A ceramic figurine of Du Fu, a prominent Chinese poet of the Tang dynasty. Du is the subject of a new BBC documentary, thrilling devotees of his poetry. Photo: Simon Song
The resonant words of an ancient Chinese poet spoken by esteemed British actor Sir Ian McKellen have reignited in China discussion about its literary history and inspired hope that Beijing can tap into cultural riches to help mend its image in the wake of the coronavirus pandemic.
The BBC documentary Du Fu: China’s Greatest Poet has provoked passion among Chinese literature lovers about the poetic master who lived 1,300 years ago.
Sir Ian Mckellen read works of ancient Chinese poet Du Fu in Du Fu: China’s Greatest Poet. Photo: BBC Four / MayaVision International
The one-hour documentary by television historian Michael Wood was broadcast on television and aired online for British viewers this month but enthusiasm among Chinese audiences mean the trailer and programme have been widely circulated on video sharing websites inside mainland China, with some enthusiasts dubbing Chinese subtitles.
The documentary has drawn such attention in Du’s homeland that even the Communist Party’s top anti-graft agency has discussed it in its current affairs commentary column. Notably, Wood’s depiction of Du’s life from AD712 to 770 barely mentioned corruption in the Tang dynasty (618-907) government.
“I couldn’t believe it!!” Wood said in an email. “I’m very pleased of course … most of all as a foreigner making a film about such a loved figure in another culture, you hope that the Chinese viewers will think it was worth doing.”
Often referred to as ancient China’s “Sage of Poetry” and the “Poet Historian”, Du Fu witnessed the Tang dynasty’s unparalleled height of prosperity and its fall into rebellion, famine and poverty.
Writer, historian and presenter Michael Wood followed the footsteps of the ancient Chinese poet Du Fu in Yangtze River gorges. Photo: BBC Four / MayaVision International
Wood traced Du’s footsteps to various parts of the country. He interviewed Chinese experts and Western sinologists, offering historical and personal contexts to introduce some of Du’s more than 1,400 poems and verses chronicling the ups and downs of his life and China.
The programme used many Western reference points to put Du and his works into context. The time Du lived in was described as around the as the Old English poem Beowulf was composed and the former Chinese capital, Changan, where Xian is now, was described as being in the league of world cities of the time, along with Constantinople and Baghdad.
Harvard University sinologist Stephen Owen described the poet’s standing as such: “There is Dante, there’s Shakespeare, and there’s Du Fu.”
The performance of Du’s works by Sir Ian, who enjoyed prominence in China with his role as Gandalf in the Lord of the Rings movie series, attracted popular discussion from both media critics and general audiences in China, and sparked fresh discussion about the poet.
“To a Chinese audience, the biggest surprise could be ‘Gandalf’ reading out the poems! … He recited [Du’s poems] with his deep, stage performance tones in a British accent. No wonder internet users praised it as ‘reciting Du Fu in the form of performing a Shakespeare play,” wrote Su Zhicheng, an editor with National Business Daily.
A stone sculpture at Du Fu Thatched Cottage in Chengdu city, China. Photo: Handout
On China’s popular Weibo microblog, a viewer called Indifferent Onlooker commented on Sir Ian’s recital of Du’s poem My Brave Adventures: “Despite the language barrier, he conveyed the feeling [of the poet]. It’s charming.”
Some viewers, however, disagreed. At popular video-sharing website Bilibili.com, where uploads of the documentary could be found, a viewer commented: “I could not appreciate the English translation, just as I could not grasp Shakespeare through his Chinese translated works in school textbooks.”
Watching the documentary amid the coronavirus pandemic, some internet users drew comparisons of Du to Fang Fang, a modern-day award-winning poet and novelist who chronicled her life in Wuhan during the Covid-19 lockdown.
Shanghai pictured in April. Devastation wrought by the coronavirus pandemic has brought about a new suspicion of China. Photo: Bloomberg
The pandemic has infected more than 2.5 million people and killed more than 170,000. It has put the global economy in jeopardy, fuelling calls for accountability. British Foreign Secretary Dominic Raab last week called for a “deep dive” review and the asking of “hard questions” about how the coronavirus emerged and how it was not stopped earlier.
Steve Tsang, director of the SOAS China Institute at University of London, said the British establishment and wider public had changed its perception of Beijing as questions arose about outbreak misinformation and the political leverage of personal protective gear supply.
“The aggressive propaganda of the Chinese government is getting people in the UK to look more closely at China and see that it is a Leninist party-state, rather than the modernising and rapidly changing society that they want to see in China,” Tsang said.
On Sunday, a writer on the website of the National Supervisory Commission, China’s top anti-corruption agency, claimed – without citing sources – that the Du Fu documentary had moved “anxious” British audience who were still staying home under social distancing measures.
“If anyone wants to put the fear of the coronavirus behind them by understanding the rich Chinese civilisation, please watch this documentary on Du Fu,” it wrote, adding that promoting Du’s poems overseas could help “healing and uniting our shattered world”.
English-language state media such as CGTN and the Global Times reported on the documentary last week and some Beijing-based foreign relations publications have posted comments about the film on Twitter.
Wood said he had received feedback from both Chinese and British viewers that talked about “the need, especially now, of mutual understanding between cultures”.
“It is a global pandemic … we need to understand each other better, to talk to each other, show empathy: and that will help foster cooperation. So even in a small way, any effort to explain ourselves to each other must be a help,” Wood said.
He said the idea for producing a documentary about Du Fu started in 2017, after his team had finished the Story of China series for BBC and PBS.
Du Fu: China’s Greatest Poet first aired in Britain on April 7 on BBC Four, the cultural and documentary channel of the public broadcaster. It is a co-production between the BBC and China Central Television.
Wood said a slightly shorter 50-minute version would be aired later this month on CCTV9, Chinese state television’s documentary channel.
The film was shot in China in September, he said.
“I came back from China [at the] end of September, so we weren’t affected by the Covid-19 outbreak, though of course it has affected us in the editing period. We have had to recut the CCTV version in lockdown here in London and recorded two small word changes on my iPhone!” Wood said.
SEOUL/BEIJING (Reuters) – China has allowed 200 employees from South Korea’s Samsung Electronics Co Ltd (005930.KS) to enter the country to work on an expansion of the firm’s NAND memory chip factory, the company said on Wednesday.
The move came after China said on Tuesday that it was in talks with some countries to establish fast-track procedures to allow travel by business and technical personnel to ensure the smooth operation of global supply chains.
China said it has reached a consensus on such an arrangement with South Korea, without elaborating on the terms, including whether individuals entering China will be subject to quarantine.
China, where the virus first emerged late last year, blocked entry last month for nearly all foreigners in an effort to curb risks of coronavirus infections posed by travellers from overseas. After bringing the local spread under control with tough containment measures, it is trying to restart its economic engines after weeks of near paralysis.
A chartered China Air Ltd (601111.SS) plane flew in the Samsung Electronics employees on Wednesday, a company spokeswoman said.
Samsung said its employees will follow the local government’s policy upon arrival, without elaborating.
Shaanxi province, where Samsung’s NAND memory chip plant is located, requires people travelling from overseas to undergo a 14-day quarantine, according to South Korea’s foreign ministry.
“Samsung employees will not be exempted from the 14-day quarantine rule imposed by the Shaanxi province. They will get coronavirus tests at the airport upon arrival and will be transported to a local hotel designated by Chinese authorities,” an official at the Consulate General of South Korea in Xi’an told Reuters.
Samsung Electronics in December increased investment at its chip factory in China by $8 billion to boost production of NAND flash memory chips.
BEIJING, April 21 (Xinhua) — Chinese President Xi Jinping attaches great importance to poverty alleviation. He has addressed the issue on many occasions. The following are some highlights of his quotes.
— It is an essential requirement of socialism to eradicate poverty, improve people’s living standards and achieve common prosperity among the people.
— No single poor area or individual shall be left behind.
— Genuinely poor people are to genuinely shake off poverty. Poverty must be truly eliminated.
— The measurement for moderate prosperity lies in rural areas.
— Cadres play a key role in helping people shake off poverty.
— Eradicating poverty is a common mission of human beings.
— It will be the first time in the millennia-old history of the Chinese nation that absolute poverty is comprehensively eliminated.
— Being lifted out of poverty is not an end in itself but the starting point of a new life and a new pursuit.
Israeli medical equipment firm IceCure Medical, with an initial US$4 million sales and marketing effort, will open its first Chinese office in Shanghai
English shopping outlet company Value Retail sees the chance to lure consumers who have been under lockdowns aimed at halting the spread of the coronavirus
Foreign firms, including Israeli medical equipment maker IceCure Medical and English shopping outlet company Value Retail, still see opportunities in China despite the coronavirus. Photo: AFP
Not only has the coronavirus pandemic not watered down one company’s expansion plans for China, it has given it even greater reason to push forward into the Chinese market.
Israeli company IceCure Medical is forging ahead with opening its first Chinese office in Shanghai, with plans to spend up to US$4 million for the initial sales and marketing effort for its non-surgical breast cancer treatments.
Chief executive Eyal Shamir said he has seen an uptick in Chinese interest in the company’s ProSense product, which allows the freezing of tumours outside a hospital environment, because it can free up facilities badly needed for Covid-19 patients.
The government approval of the company’s Chinese subsidiary is now only days away following a successful product console registration, according to Shamir, and it has already sold two units to the Fudan University Shanghai Cancer Centre for a clinical study.
World Health Organisation warns the ‘worst still ahead’ in coronavirus pandemic
“We are planning a full launch of the product in China for both breast cancer and breast benign tumours as well as other organs,” Shamir said.
“Post Covid-19, there will be a backlog of many surgeries and not only for breast cancer patients.”
IceCure Medical, though, is not the only foreign company eyeing expansion into China despite the risk of secondary outbreaks of coronavirus.
West of Shanghai, English shopping outlet company Value Retail is also expanding its retail space, banking on Chinese shoppers re-emerging from lockdowns to begin
After being cooped at home for weeks, people want to be outdoors to enjoy the beautiful spring weather – Value Retail
Value Retail is proceeding with plans to enlarge its Suzhou Village shopping centre from 35,000 square metres (378,000 sq ft) to over 50,000 square metres, while also increasing the number of shops from 120 to 200, which will make it the largest of the 11 venues its controls globally.
It is working closely with the Yang Cheng Lake Peninsula government on a date for construction to start, after seeing a surprising increase in retail sales at its centres in early April. The company’s Chinese subsidiary, Value Retail China, attributed the rise to an increasing number of consumers wanting to “get outside” of their homes after being isolated for several weeks.
Suzhou Village sales have increased 40 per cent each week since the start of April, the company said.
“Thanks to the positive recovery [in spending] over the past several weeks, we are going ahead with the Suzhou Village expansion,” the company said in a statement. “After being cooped at home for weeks, people want to be outdoors to enjoy the beautiful spring weather. We provide a shopping experience for guests in an outdoor environment … the motivation for such an experience after isolation is huge. [Being] outdoors is seen as a luxury now.”
In addition, customers are flocking to both its Suzhou and Shanghai Village centres as a form of domestic tourism because of the curb on overseas travel, Value Retail China said.
Despite the economic destruction that the coronavirus pandemic has caused in China, it also is opening up expansion opportunities for entrepreneurial firms in several industries, such as e-commerce and online delivery, life sciences and infrastructure construction, said EY Asia-Pacific transaction advisory services leader Harsha Basnayake.
However, while businesses within Asia-Pacific expressed a desire for opportunistic expansions, most companies still held a pessimistic view of economic recovery that would drag on into 2021.
American companies already operating in China were even less optimistic with over 70 per cent of businesses surveyed by the American Chamber of Commerce in March saying they were reluctant about expanding in the coming year.
Although it is too early to say if retail property will rise – particularly when we are seeing new habits forming, going from shopfronts to online and how far this new behaviour will stick. China will gives us lots of lessons on this. – Harsha Basnayake
“We are expecting opportunities in real estate, particularly in commercial property and logistics, and we think industries in life sciences, some parts of health care and infrastructure will be interesting,” Basnayake said.
“Although it is too early to say if retail property will rise – particularly when we are seeing new habits forming, going from shopfronts to online and how far this new behaviour will stick. China will gives us lots of lessons on this.”
The Chinese government’s move to increase infrastructure spending to boost the economy will also benefit certain industries, such as cement production.
Despite suffering a 24 per cent drop in sales in the first quarter due to virus-related delays in construction activities, China’s largest cement manufacturer, Anhui Conch Cement, is likely to move forward with plans to expand in part due to its participation in the Belt and Road Initiative, according to analysts at S&P Global.
Though no one would be able to tell exactly what will happen when the Covid-19 uncertainties are not completely gone, signs of recovery in China have brought encouragement to us – Justin Channe
Desires to expand are also not limited to these industries, and even the hard-hit hotel industry is starting to show green shoots.
International hotel chain IHG said that the coronavirus would not derail its new Regent-branded hotel project in Chengdu, which is expected to start construction later this year.
“Though no one would be able to tell exactly what will happen when the Covid-19 uncertainties are not completely gone, signs of recovery in China have brought encouragement to us,” said Regent Hotels & Resorts managing director Justin Channe.
“While we saw business pickup across China over the past Qing Ming Festival holiday, Chengdu and its nearby destinations were among the leading ones. In the long run, we stay confident of the outlook for the China hotel industry, including the luxury segment.”
Analysing how coronavirus broke China’s historic economic growth run
Beyond the crisis, there will be ample opportunities for new merger and acquisitions (M&A) amid business restructures and failures, particularly in China, Basnayake added.
A new EY survey found 52 per cent of Asia-Pacific businesses planned on pursuing M&A in the next year.
“While the crisis is having a severe impact on M&A sentiment, there’s evidence from the survey that M&A activity intentions remain steady in the long term. There are many who recognise this is a time where valuations will be reset, and there will be stressed and distressed acquisition opportunities,” Basnayake said.
“For example, from our interviews with corporations in China, a majority said that Covid-19 has not impacted their M&A strategies, noting that the situation has not led to any cancellations or withdrawals from deals, but only in delays in closing deals.”
Image copyright GETTY IMAGESImage caption Delhi’sair quality has improved remarkably during the shutdown
When India shut down last month and suspended all transport to contain the spread of coronavirus, the skies over its polluted cities quickly turned an azure blue, and the air, unusually fresh.
As air pollution plummeted to levels unseen in living memory, people shared pictures of spotless skies and even Himalayan peaks from cities where the view had been obscured by fog for decades.
On one social messaging group, a resident of the capital, Delhi, which regularly records some of the foulest air in the world, celebrated the city’s “alpine weather“. Politician and author Shashi Tharoor wrote that the “blissful sight of blue skies and the joy of breathing clean air provides just the contrast to illustrate what we are doing to ourselves the rest of the time”.
Media caption India coronavirus lockdown cleans up Ganges river
Less than six months ago, Delhi was gasping for breath. Authorities said air quality had reached “unbearable levels”. Schools were shut, flights were diverted, and people were asked to wear masks, avoid polluted areas and keep doors and windows closed.
Delhi and 13 other Indian cities feature on a list of the world’s 20 most polluted. It is estimated that more than a million Indians die every year because of air pollution-related diseases. Industrial smoke, vehicular emissions, burning of trash and crop residue, and construction and road dust are the major contributors.
As urban Indians gazed at the skies and breathed clean air inside their homes, researchers hunkered down to track data on how the grinding lockdown – now extended to 3 May – was impacting air pollution across the country.
Image copyright GETTY IMAGESImage caption Lucknow is another city on the top 20 world’s most polluted list
“This was an unprecedented opportunity for us to take a close look at how air pollution levels have responded to an extraordinary development,” Sarath Guttikunda, who heads Urban Emissions, an independent research group that provides air quality forecasts, told me.
Dr Guttikunda and his team of researchers looked at the data spewed out by the 100-odd air quality monitoring stations all over India. They decided to concentrate on the capital Delhi and its suburbs – a massive sprawl called the National Capital region, where more than 20 million people live. Last winter, air pollution here had reached more than 20 times the World Health Organization’s safe limit.
Image copyright HINDUSTAN TIMESImage caption The financial capital Mumbai also seems very different
The deadliest particle in Delhi’s foul air is the tiny but deadly PM 2.5, which increases the likelihood of respiratory and cardiovascular diseases. They primarily come from combustion – fires, automobiles and power plants.
Urban Emissions found the levels of PM 2.5 in Delhi during the lockdown plummeted to 20 micrograms per cubic metre with a 20-day average of 35.
To put this into context, between 2017 and 2019, the monthly average of PM 2.5 in the capital was up to four times higher. (The national standard is set at 40, and the WHO has an annual average guideline of just 10 micrograms per cubic metre.)
“If 35 is the average lowest available PM2.5 with limited local emissions, it means that at least 70% of the pollution is locally generated,” Mr Guttikunda told me.
Media caption India coronavirus lockdown cleans up Ganges river
His study also found a marked dip in PM 10, caused mainly by road and construction dust, and nitrogen dioxide, which comes mainly from vehicular emissions, and nearly 90% of vehicles are off the road.
“The current crisis has shown us that clear skies and breathable air can be achieved very fast if concrete action is taken to reduce burning of fossil fuels,” says Sunil Dahiya, of the Centre for Research on Energy and Clean Air, which has also been tracking air pollution levels during the lockdown.
But will this prompt change? After all, urban Indians’ and the media’s panic and outrage during the deadly winter pollution every year soon gets lost in the fog of summer heat and concerns over monsoon rains and droughts.
“We don’t yet have a democratic demand for clean air,” Arunabha Ghosh, Chief Executive Officer of the Council on Energy, Environment and Water, a leading climate think tank, told me. Orders to clean up the air have almost always come from the courts, responding to pleas by NGOs.
Image copyright GETTY IMAGESImage caption Pollution in Delhi peaks during winter
However, Dr Ghosh still hopes that “the experience of blue skies and fresh air could be a trigger to create a democratic demand for clean air in India”.
Crises often trigger life changing reforms. A fatal four-day “pea-souper” that engulfed London in 1952 and killed thousands provoked the passing of the Clean Air Act to reduce the use of smoky fuels.
China tried to clean up its air several times before hosting marquee international events – like the Beijing Olympics in 2008, the World Expo in Shanghai and the Guangzhou Asian Games in 2010 – before sliding back to grey, smoky skies.
But many believe the 2014 Apec meeting in Beijing, when China hosted 21 heads of Asia-Pacific economies, was a turning point. The rare blue skies over Beijing spawned the phrase ‘Apec blue‘. In a rush to clean its air, China introduced a set of far-reaching measures. Over the next four years, this resulted in a 32% drop in average pollution across major Chinese cities.
So could a lockdown to prevent the spread of a pandemic, which has imperilled the health and livelihoods of millions, trigger similar policy changes to clean up India’s air?
Image copyright GETTY IMAGESImage caption The movement for clean air has been sporadic and mainly pushed by NGOs
Could it move to a shift in reducing traffic on the road by asking people to work from home in shifts now that millions have experienced clean air for the first time in years? (Facing energy shortages after the loss of the Fukushima nuclear power plant, Japan unleashed a Cool Biz campaign to cut down air conditioning in workplaces and reduce carbon emissions by asking office workers to shed their suits.)
Or can India use some of the money from an inevitable stimulus to help kick-start the economy go towards helping green industries? Renewables, experts say, creates more jobs than coal: India has already created nearly 100,000 jobs in solar and wind energy firms.
Can the country use the windfall revenues accruing from the steep decline in oil prices – most of India’s oil is imported – to provide rebates to polluting factories to set up much-needed emission control equipment?
“We have to learn lessons to deploy the economic recovery from the pandemic. We need growth, jobs and sustainable development,” says Dr Ghosh. Cleaning up the air could be the key. For too long, India – and Indians – have ignored their right to breathe easy.
What’s more, if China can reduce air pollution by 32% in four-and-a-half years, why can’t India pledge to reduce pollution by 80% in 80 cities by 2027, which is our 80th anniversary of Independence? asks Dr Ghosh.
CHINDIA ALERT: You'll be living in their world, very soon 
