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.
People’s Liberation Army has officially recorded no infections but disease fears have delayed recruitment, training and operations
Analysts say Sars experience guided military’s prompt response, but combat effectiveness has been affected
Chinese military medical personnel arriving in Wuhan in February to assist with the coronavirus outbreak response to the February. Photo: Reuters
China’s military may have been spared any coronavirus infections, but the global health crisis has slowed the progress of Chinese President Xi Jinping’s plan to transform the People’s Liberation Army into a modern fighting force capable of long-range power-projecting operations, experts say.
According to China’s defence ministry, the world’s largest armed force – with about 2.3 million personnel – has had zero confirmed cases of Covid-19. In contrast, the US and Russian militaries, ranked second- and third-largest in the world, have reported more than 4,000 and 1,000 respectively.
But the PLA has been affected in other ways by the disease, which was first reported in Wuhan in December before going on to infect 3.9 million people around the world to date.
Safety concerns delayed its annual spring recruitment programme – it has been rescheduled for August – while the PLA Navy was forced to change its training arrangements, switching to classroom study of military theory and tactics, according to Xinhua.
“The PLA is still a conscription army and, given its large turnover of soldiers every year and the late recruitment and training plan this year, the coronavirus pandemic has already affected combat effectiveness,” said Adam Ni, director of the China Policy Centre, an independent, non-profit research organisation based in Canberra, Australia.
China’s military budget will still rise despite coronavirus, experts predict
3 May 2020
The navy’s operations, in particular, would have been affected, according to Charlie Lyons Jones, a researcher from the Australian Strategic Policy Institute’s defence and strategy programme.
“The Chinese navy, short of highly effective disease control measures, is unlikely to avoid similar outbreaks of the novel coronavirus on board its warships,” he said.
“Therefore, even if the PLA Navy currently has zero personnel infected by the novel coronavirus, its position as a navy that can operate effectively in a period of higher-than-normal tension remains precarious at best,” Jones said. He also questioned Beijing’s claims that the military was virus-free.
“The PLA played an important role in China’s response to the coronavirus outbreak in Wuhan … The idea that none of these personnel working on the front lines in Wuhan became infected by the novel coronavirus would be inconsistent with the experiences of countries from around the world,” he said.
More than 4,000 military medical workers were sent to Wuhan as part of China’s effort to contain the outbreak at ground zero – which included the rapid-built emergency field facility, the Huoshenshan hospital – and their efforts were highlighted in a documentary screened recently by state broadcaster CCTV.
China opens coronavirus hospital built in 10 days
At the time, rumours were rampant that the Chinese military had been affected by the coronavirus, fuelled by a report on February 17 by the official PLA Daily that some soldiers had been placed in quarantine and Yu Qiusong, captain of the Changzhou type 054A frigate, was isolating in a guest house. The news report did not mention why the personnel were in quarantine.
But analysts said that whether the official numbers were accurate, the PLA’s closed management, fast response and past experience with severe acute respiratory syndrome (Sars) gave China’s military an advantage in keeping the coronavirus at bay.
Zhou Chenming, a Beijing-based military observer, said a key reason for the less serious hit to the PLA compared to other forces was its speed in recognising the severity of the situation.
“What’s more, the PLA has its own logistic support system that can help minimise its contact with the outside world, thus reducing the possibility of contracting the virus,” he said.
China’s long-range stealth bomber could make its debut this year
4 May 2020
According to Xinhua, the PLA’s Centre for Disease Control and Prevention drew up an emergency response plan and mobilisation arrangements on January 20, the same day Xi issued an instruction to the public that the virus must be “resolutely contained”.
Timothy Heath, a senior international defence research analyst with the Rand Corporation, a US think tank, said China’s military had benefited from its less international role, compared to US forces.
“The US is a globally distributed force while the Chinese military largely operates on the mainland. The US thus faces challenges in containing the disease that the Chinese military does not have to face … and the US military has a large range of missions and tasks it carries out to counter threats to its allies and partners, as well as to US security. This complicates efforts by the US military to carry out disease control measures,” he said.
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/SHANGHAI (Reuters) – China expects to import more soybeans and pork this year following the novel coronavirus outbreak and African swine fever, which has decimated its pig herds.
Soybean imports are forecast at 92.48 million tonnes this year, rising to 96.62 million tonnes in 2025 and 99.52 million tonnes in 2029, an official from the agriculture ministry told a video conference on the outlook for agriculture released on Monday.
Pork imports this year are seen rising to 2.8 million tonnes, a 32.7% increase from the previous year.
China is a key buyer and consumer of soybeans and pork globally, and typically imports millions of tonnes of soybeans per year to crush for meal to feed its livestock.
The African swine fever outbreak, however, had slashed China’s pig herd by over 40% last year, reducing supplies in the world’s biggest pork consumer.
Combined with the coronavirus outbreak, which hit the transport of pigs and delayed the restart of slaughtering plants, prices of China’s favourite meat rose to record levels in February.
China has been increasing pork imports in recent months to make up for the drop in domestic supply.
Despite the expected surge in imports, China’s 2020 pork consumption is forecast to fall to 42.06 million tonnes, down 5.6% year-on-year, hit by high prices and a fall in consumer demand due to the coronavirus outbreak, according to the agriculture ministry.
In line with the slowing consumption, China’s slaughtered pig herd this year will fall 7.8% year-on-year to 501.49 million heads. Pork output this year will also decline to 39.34 million tonnes from 2019, but will rebound to around 54 million tonnes in 2022.
In the longer term, however, pork imports are expected to gradually fall, the ministry forecast, while beef and mutton imports are set to increase in the next decade.
Meanwhile, China’s domestic soybean output is seen at 18.81 million tonnes in 2020, a 3.9% gain from the previous year, while crushing volumes were pegged at 85.98 million tonnes.
Soybean consumption will increase steadily and continue to rely mainly on imports in the next 10 years, said a ministry official.
The ministry also said China’s corn acreage and output are both set to increase in 2020, with production forecast to reach over 260 million tonnes this year, while annual rice output is expected to hold steady above 200 million tonnes per year in the next 10 years.
Image copyright GETTY IMAGESImage caption The Chinese city of Wuhan recently lifted its strict quarantine measures
The Chinese city of Wuhan, where the coronavirus originated last year, has raised its official Covid-19 death toll by 50%, adding 1,290 fatalities.
Wuhan officials attributed the new figure to updated reporting and deaths outside hospitals. China has insisted there was no cover-up.
It has been accused of downplaying the severity of its virus outbreak.
Wuhan’s 11 million residents spent months in strict lockdown conditions, which have only recently been eased.
The latest official figures bring the death toll in the city in China’s central Hubei province to 3,869, increasing the national total to more than 4,600.
China has confirmed nearly 84,000 coronavirus infections, the seventh-highest globally, according to Johns Hopkins University data.
What’s China’s explanation for the rise in deaths?
In a statement released on Friday, officials in Wuhan said the revised figures were the result of new data received from multiple sources, including records kept by funeral homes and prisons.
Deaths linked to the virus outside hospitals, such as people who died at home, had not previously been recorded.
Media caption Learn how Wuhan dealt with the lockdown
The “statistical verification” followed efforts by authorities to “ensure that information on the city’s Covid-19 epidemic is open, transparent and the data [is] accurate”, the statement said.
It added that health systems were initially overwhelmed and cases were “mistakenly reported” – in some instances counted more than once and in others missed entirely.
A shortage of testing capacity in the early stages meant that many infected patients were not accounted for, it said.
A spokesman for China’s National Health Commission, Mi Feng, said the new death count came from a “comprehensive review” of epidemic data.
In its daily news conference, the foreign ministry said accusations of a cover-up, which have been made most stridently on the world stage by US President Donald Trump, were unsubstantiated. “We’ll never allow any concealment,” a spokesman said.
Why are there concerns over China’s figures?
Friday’s revised figures come amid growing international concern that deaths in China have been under-reported. Questions have also been raised about Beijing’s handling of the epidemic, particularly in its early stages.
In December 2019, Chinese authorities launched an investigation into a mysterious viral pneumonia after cases began circulating in Wuhan.
China reported the cases to the World Health Organization (WHO), the UN’s global health agency, on 31 December.
But WHO experts were only allowed to visit China and investigate the outbreak on 10 February, by which time the country had more than 40,000 cases.
The mayor of Wuhan has previously admitted there was a lack of action between the start of January – when about 100 cases had been confirmed – and 23 January, when city-wide restrictions were enacted.
Around that time, a doctor who tried to warn his colleagues about an outbreak of a Sars-like virus was silenced by the authorities. Dr Li Wenliang later died from Covid-19.
Wuhan’s death toll increase of almost exactly 50% has left some analysts wondering if this is all a bit too neat.
For months questions have been asked about the veracity of China’s official coronavirus statistics.
The inference has been that some Chinese officials may have deliberately under-reported deaths and infections to give the impression that cities and towns were successfully managing the emergency.
If that was the case, Chinese officials were not to know just how bad this crisis would get in other countries, making its own figures now seem implausibly small.
The authorities in Wuhan, where the first cluster of this disease was reported, said there had been no deliberate misrepresentation of data, rather that a stabilisation in the emergency had allowed them time to revisit the reported cases and to add any previously missed.
That the new death toll was released at the same time as a press conference announcing a total collapse in China’s economic growth figures has led some to wonder whether this was a deliberate attempt to bury one or other of these stories.
Then again, it could also be a complete coincidence.
China has been pushing back against US suggestions that the coronavirus came from a laboratory studying infectious diseases in Wuhan, the BBC’s Barbara Plett Usher in Washington DC reports.
US President Donald Trump and some of his officials have been flirting with the outlier theory in the midst of a propaganda war with China over the origin and handling of the pandemic, our correspondent says.
Mr Trump this week halted funding for the World Health Organization (WHO), accusing it of making deadly mistakes and overly trusting China.
“Do you really believe those numbers in this vast country called China, and that they have a certain number of cases and a certain number of deaths; does anybody really believe that?” Mr Trump said at the White House on Wednesday.
On Thursday, UK Foreign Secretary Dominic Raab said: “We’ll have to ask the hard questions about how [coronavirus] came about and how it couldn’t have been stopped earlier.”
But China has also been praised for its handling of the crisis and the unprecedented restrictions that it instituted to slow the spread of the virus.
Anyone caught breaking Singapore’s social distancing rules could be jailed from Friday, as the city state ramped up its coronavirus defence and announced the introduction of distance learning for schools.
Under updates to its powerful infectious diseases law, anyone who intentionally sits less than 1 metre away from another person in a public place or on a fixed seat demarcated as not to be occupied, or who stands in a queue less than a metre away from another, will be guilty of an offence.
Offenders can be fined up to S$10,000 (US$6,990), jailed for up to six months, or both. The rules, in place until April 30, can be applied to individuals and businesses.
The news was followed later by an announcement from the education ministry that starting from April, schools will start conducting one day of home-based learning for students per week.
Singapore’s new social distancing laws send needed signal, experts say
27 Mar 2020
“The recent spike in imported cases signals a new phase in our nation’s fight against Covid-19. To support further safe distancing, schools will progressively transit to a blended learning model, starting with one day of home-based learning a week,” the ministry said in a statement.
It added schools will remain open for students whose parents are not able to secure alternative childcare arrangements.
Hundreds of thousands of students in Singapore returned to class on Monday after a week of school holidays, despite growing calls for schools to be closed.
Singapore is one of the few jurisdictions in the region that has yet to suspend schools, unlike Hong Kong, Thailand, Indonesia, and Malaysia.
Education Minister Ong Ye Kung had earlier cited scientific evidence, saying that the pneumonia-like Covid-19 illness does not affect the young as much as adults.
Authorities in the city state, however, have said that suspending schools and closing workplaces are among the next steps to be taken should the situation worsen. Singapore has confirmed 683 cases so far, of which 172 have recovered and two died.
Global condom shortage looms amid virus lockdowns
A global shortage of condoms is looming, the world’s biggest producer said, after a coronavirus lockdown forced it to shut down production.
Malaysia’s Karex makes one in every five condoms globally. It has not produced a single condom from its three Malaysian factories in the past 10 days because of the lockdown imposed by the government to halt the spread of the virus.
That’s already a shortfall of 100 million condoms, normally marketed internationally by brands such as Durex, supplied to state health care systems such as Britain’s NHS or distributed by aid programmes such as the UN Population Fund.
“We are going to see a global shortage of condoms everywhere, which is going to be scary,” Karex Chief Executive Goh Miah Kiat said this week.
“My concern is that for a lot of humanitarian programmes deep down in Africa, the shortage will not just be two weeks or a month. That shortage can run into months.”
The other major condom-producing countries are China, where the coronavirus led to widespread factory shutdowns, and India and Thailand, which are seeing infections spiking only now.
Goh said Karex was in the process of appealing to the government for an exemption to operate under specific conditions. Malaysia is approving other essential goods producers to operate with half of their workforce.
“The good thing is that the demand for condoms is still very strong because like it or not, it’s still an essential to have,” Goh said. “Given that at this point in time people are probably not planning to have children. It’s not the time, with so much uncertainty.”
China to ban most foreign arrivals
China has banned most foreigners from entering the country in an effort to block the spread of the coronavirus through imported cases.
With several exceptions, including transit visas and foreigners arriving via Hong Kong and Macau with short-term entry permits, entry visas issued to foreigners will be suspended as an “interim measure”, according to a statement late on Thursday by the country’s foreign ministry.
“In view of the rapid spread of the new coronavirus epidemic worldwide, China has decided to temporarily suspend entry of foreigners with currently valid visas and residence permits in China,” the ministry said.
“This is an interim measure that China has to take in order to respond to the current epidemic situation, with reference to the practice of many countries,” it added. “The Chinese side will adjust the above measures according to the epidemic situation through separate announcements.”
Pakistan aid workers lack basic kit
Pakistan’s biggest charity, famous for its emergency services for the poor, is kitting staff out in raincoats and rubber boots in the battle against the coronavirus as it can’t get hold of proper personal protective equipment, the organisation says.
Pakistan has reported the highest number of coronavirus infections in South Asia, with 1,179 cases and nine deaths, but health experts say there is a lack of public awareness about the virus and the cash-strapped government is ill-prepared to tackle it.
The Edhi Foundation has for decades stepped in to help when government services fail communities and it runs the country’s largest ambulance service.
Now it has had to train dozens of staff on how to handle suspected coronavirus patients. But providing them with proper protection is a problem given a nationwide shortage of the equipment.
“We’ve compromised on certain things and use alternatives,” Facial Edhi, head of the Edhi Foundation, said at his office in Karachi, Pakistan’s biggest city, on Thursday.
“Full aprons are in short supply in the market.”
He said he was confident the raincoats would work just as well.
South Korea pleads with residents to stay indoors
Authorities in South Korea pleaded with residents on Friday to stay indoors and avoid large gatherings as new coronavirus cases hovered close to 100 per day.
South Korea reported 91 new infections on Friday, taking the national tally to 9,332, the Korea Centres for Disease Control and Prevention said. The country has reported similar daily numbers for the past two weeks, down from a high of over 900 in late February.
The government has sought to convince a restless public that several more weeks of social distancing and self-isolation may be needed to allow health authorities to tamp down the smaller but still steady stream of new cases.
“As the weather is getting nicer, I know many of you may have plans to go outside,” said Yoon Tae-ho, director general for public health policy at the health ministry. “But social distancing cannot be successful when it’s only an individual, it needs to be the whole community.”
Coronavirus: California officials alarmed by rate of infection
27 Mar 2020
Italy reports 662 new deaths, with uptick in new cases
Italy is reporting an uptick in new novel coronavirus infections, after four consecutive days in which new cases had decreased.
The country now has 62,013 active cases, a daily increase of 4,492, the Italian Civil Protection Agency said in its bulletin.
On Wednesday the daily variation was 3,491, on Tuesday 3,612, on Monday 3,780, on Sunday 3,957, and on Saturday a record 4,821.
There are also 662 new fatalities, bringing the total death toll to 8,165, while overall infections, including deaths and recoveries, have risen to 80,539, a daily increase of 8.3 per cent.
Recoveries are up by around 11 per cent to 10,361, while the number of intensive care patients – a closely watched figure given the shortage of hospital beds – has risen by 3.5 per cent, to 3,612.
Russia closes all restaurants nationwide
Russia is temporarily closing restaurants nationwide for a nine-day period starting on Saturday to prevent the spread of the coronavirus.
Restaurants will still be able to provide delivery services during that time, according to the decree by Prime Minister Mikhail Mishustin, published on his website on Friday.
Russia has reported more than 800 cases of coronavirus, predominantly in Moscow, which has seen at least two virus-related deaths. Mayor Sergei Sobyanin has warned that the actual number of cases is probably “significantly more”.
The country has already prohibited regular international flights, and imposed strict quarantine measures for anyone entering the country and anyone who could have been exposed to someone infected with the virus – though has not yet opted to impose lockdown measures like those seen elsewhere.
Coronavirus containment measures spark prison protests across Italy as nation goes into lockdown
First casualty in Kenya
Kenya has recorded its first coronavirus death as a rapid rise in confirmed cases puts Africa’s fragile health systems to the test.
Kenyan Health Cabinet Secretary Mutahi Kagwe said a 66-year-old Kenyan man died on Thursday afternoon despite treatment in an intensive care unit.
Kagwe said the man, who arrived into the country on March 13 from South Africa via Swaziland, was a diabetic. Also on Thursday, three women aged between 30 and 61 tested positive for Covid-19, the disease caused by the coronavirus, taking the country’s total to 31.
Kenya is the second country in East Africa and the 15th on the continent to confirm a coronavirus-related death. Algeria has the highest death toll in Africa with 25 fatalities, while Egypt has reported 24 and Morocco 11.
About a week ago, the continent of 54 countries had reported fewer than 300 cases. But by Friday Africa had 3,221 confirmed cases and 87 deaths. WHO regional director for Africa Matshidiso Moeti said on Thursday that the situation in Africa was “evolving very quickly in terms of geographic spread and the increasing number of cases”.
Australian military to enforce quarantine
The Australian military will help enforce the quarantine of travellers returning to the country, with the prime minister unveiling strict new measures and door-to-door checks on Friday to rein in the spread of Covid-19.
With some two-thirds of Australia’s 3,000 Covid-19 cases still linked to overseas travel, Scott Morrison said 14-day home quarantines would now be actively policed with the help of the military.
Thousands of citizens and residents are still arriving in Australia every day and there have been instances of return travellers repeatedly breaking a promise to stay at home.
Morrison said all returnees arriving after midnight Saturday would now be kept in hotels in the city of arrival for the duration of their quarantine.
Those already on Australian soil and under orders to self-quarantine for two weeks will face active checks, he said.
Quarantine measures will be getting “a lot tougher and a lot stricter,” Morrison said, adding the Australian Defence Force would “assist in the compliance with these arrangements.”
Afghanistan to release 10,000 prisoners
Afghanistan will release at least 10,000 prisoners over the age of 55 in an attempt to prevent the spread of the coronavirus, officials said on Thursday.
“The president has issued a decree that several thousand prisoners will be released soon due to coronavirus,” an official in President Ashraf Ghani’s office said.
Those released will not include members of Islamist militant groups the Taliban or Islamic State, and the process will be completed within 10 days, said two government officials.
Afghanistan has reported 91 cases of coronavirus and three deaths. The country’s western Herat province has recorded at least 54 of the 75 total cases reported in the last week.
International aid groups in recent weeks have raised concerns about the possibility of the coronavirus spreading in prisons across Afghanistan.
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.
CHINDIA ALERT: You'll be living in their world, very soon 
