Archive for ‘January’

29/04/2020

Coronavirus outbreak in France did not come directly from China, gene-tracing scientists say

  • Researchers conclude that the virus was circulating undetected in France in February
  • Findings highlight the difficulties governments face in tracing the source of coronavirus outbreaks
Researchers in France have carried out genetic analysis and found that the dominant types of the viral strains in the country did not come from China or Italy. Photo: AP
Researchers in France have carried out genetic analysis and found that the dominant types of the viral strains in the country did not come from China or Italy. Photo: AP
The coronavirus outbreak in France was not caused by cases imported from China, but from a locally circulating strain of unknown origin, according to a new study by French scientists at the Institut Pasteur in Paris.
Genetic analysis showed that the dominant types of the viral strains in France belonged to a clade – or group with a common ancestor – that did not come from China or Italy, the earliest hotspot in Europe.
“The French outbreak has been mainly seeded by one or several variants of this clade … we can infer that the virus was silently circulating in France in February,” said researchers led by Dr Sylvie van der Werf and Etienne Simon-Loriere in a non-peer reviewed paper released on bioRxiv.org last week.
The Covid-19 pandemic has infected more than 128,000 people in France and caused more than 23,000 deaths.
France detected the virus in late January, before any other country in Europe. A few patients with a travel history that included China’s Hubei province were sampled on January 24 and tested positive.
The Covid-19 pandemic has infected more than 128,000 people in France and caused more than 23,000 deaths. Photo: AFP
The Covid-19 pandemic has infected more than 128,000 people in France and caused more than 23,000 deaths. Photo: AFP
The French government took quick and decisive measures to trace contacts of the infected people and shut down the chance of further infection.

However, these strains were not found in patients tested after the initial imported cases, suggesting “the quarantine imposed on the initial Covid-19 cases in France appears to have prevented local transmission”, the researchers said.

The Pasteur institute collected samples from more than 90 other patients across France and found the strains all came from one genetic line. Strains following this unique path of evolution had so far only been detected in Europe and the Americas.

Singapore Covid-19 cases to rise as not all migrant workers being tested

28 Apr 2020

The earliest sample in the French clade was collected on February 19 from a patient who had no history of travel and no known contact with returned travellers.

Several patients had recently travelled to other European countries, the United Arab Emirates, Madagascar and Egypt but there was no direct evidence that they contracted the disease in these destinations.

To the researchers’ surprise, some of the later strains collected were genetically older – or closer to the ancestral root – than the first sample in this clade.

Spanish official cries reading names of health workers killed by coronavirus
A possible explanation, according to the authors, was that local transmission had been occurring in France for some time without being detected by health authorities.
The French government may have missed detecting the transmission. According to the researchers, a large proportion of those patients might have had mild symptoms or none at all.

The researchers also found that three sequences later sampled in Algeria were closely related to those in France, suggesting that travellers from France might have introduced the virus to the African country and caused an outbreak.

China says US politicians are lying as Trump calls for Covid-19 damages

29 Apr 2020

Benjamin Neuman, professor and chair of biological sciences with the Texas A&M University-Texarkana, said the French strains might have come from Belgium, where some sequences most closely related to the original strain from China were clustered.

“Since the earliest European strains of [the coronavirus] Sars-CoV-2 seem to be associated with Belgium, the idea that the virus spread from Belgium to both Italy and France at around the same time seems plausible, as this paper contends,” he said.

France is the latest in a growing number of countries and areas where no direct link between China and local outbreaks could be established.

The dominant strains in Russia and Australia, for instance, came from Europe and the United States, respectively, according to some studies.

These findings have drawn fire from some politicians who have tried to deflect domestic anger over their handling of the crisis by blaming China.

US President Donald Trump lashed out on social media after two separate teams in the US found the strains devastating New York came from Europe.

Is this the next big hotspot for the ‘little flu’?

28 Apr 2020

“So now the Fake News @nytimes is tracing the CoronaVirus origins back to Europe, NOT China. This is a first!” he tweeted on April 11, referring to a story about the studies in the The New York Times’ science section.

The findings also highlight the difficulties governments face in tracing the source of coronavirus outbreaks.

Less-developed countries may never know where their strains came from due to inadequate testing and sequencing capability.

India, for example, has released the genetic sequence of fewer than 40 samples to the public so far, a small number considering its huge population.

Most of the strains sampled in 35 early cases came from clades that could be traced to Italy and Iran, with only a few from China, according to a recent study. But researchers were not able to track further because of the lack of data.

A scientist on the study, Dr Mukesh Thakur, of the Zoological Survey of India, said it was too early to rule out China as the source of outbreaks in India because the number of samples at hand was limited.

A 20-year-old student studying medicine in Wuhan, for instance, might have come in contact with many people on the way home before she was tested positive on January 30.

Thakur said local media reported that the Indian government quarantined 3,500 people possibly linked to three positive cases imported from Wuhan.

“God knows how many of them tested positive in the subsequent stages,” Thakur said in an email response to the Post’s queries on Tuesday.

Some prominent scientists, including Francis Collins, director of the US National Institutes of Health, said the virus might have been spreading quietly in humans for years, or even decades, without causing a detectable outbreak.

The virus had thus adapted well to the human body. Some genes regulating its binding to host cells were similar, or even identical, to those found in some other highly infectious human viruses, such as HIV and Ebola.

According to some estimates, the ancestor of Sars-CoV-2, the virus causing Covid-19, might have left bats between 50 and 70 years ago. A recent study by a team of geneticists in Oxford University estimated the first outbreak of the current pandemic could have occurred as early as September last year.

They found that the dominant strains circulating in China and Asia were genetically younger than some popular strains in the United States.

Source: SCMP

29/04/2020

China parliament to open key session on May 22 as epidemic subsides

BEIJING (Reuters) – China announced on Wednesday that its parliament will open a key annual session on May 22, signalling that Beijing sees the country returning to normal after being reduced to a near-standstill for months by the COVID-19 epidemic.

During the gathering of the National People’s Congress in the capital, delegates will ratify major legislation, and the government will unveil economic targets, set defence spending projections and make personnel changes. The ruling Communist Party also typically announces signature policy initiatives.

The session was initially scheduled to start on March 5 but was postponed due to COVID-19, which has infected nearly 83,000 people and killed more than 4,600 on the mainland after emerging late last year in the central city of Wuhan.

As the epidemic has subsided, economic and social life gradually returned to normal, making it possible for the congress to convene, the official Xinhua news agency quoted the standing committee of the NPC, the legislature’s top decision-making body, as saying.

The committee also appointed Huang Runqiu as the new minister for ecology and environment, a post vacated when predecessor Li Ganjie became deputy Communist Party chief for Shandong province earlier this month, Xinhua reported.

Tang Yijun was also named as the new justice minister to replace Fu Zhenghua, who has reached the retirement age of 65 for ministers.

The Chinese People’s Political Consultative Conference (CPPCC), an advisory body to parliament, has proposed starting its annual session a day before the parliamentary session opens.

Analysts expect China to roll out additional fiscal stimulus in order to cushion the blow from COVID-19, which has developed in to a worldwide pandemic that some fear will trigger a severe global recession.

China’s economy contracted for the first time on record during the January-March period, when the government imposed severe travel and transport restriction to curb the spread of the epidemic.

Parliament is also expected to discuss the anti-government protests in Hong Kong, amid growing speculation that Beijing take steps to strengthen its grip on the city.

It is unclear how long parliament and its advisory body will meet for this time, and people familiar with the matter have told Reuters that this year’s annual sessions could be the shortest in decades due to COVID-19 concerns. Usually more than 5,000 delegates descend on Beijing from all over China for at least 10 days.

Beijing city plans to ease quarantine rules as early as Thursday, two sources familiar with the situation told Reuters, ahead of the key political meetings.

People arriving in the capital from other parts of China will no long have to be quarantined for two weeks unless they come from high-risk areas such as Heilongjiang in the north and some parts of Guangdong in the southeast, the sources said.

Source: Reuters

26/04/2020

Wuhan declared free of Covid-19 as last patients leave hospital after months-long struggle against coronavirus

  • City at centre of outbreak finally able to declare itself clear of disease after months in lockdown and thousands of deaths
  • Risk of infection remains, however, with some patients testing positive for coronavirus that causes disease without showing symptoms
Ferries and other public transport services resumed in Wuhan last week. Photo: Xinhua
Ferries and other public transport services resumed in Wuhan last week. Photo: Xinhua

The city of Wuhan, the initial epicentre of the coronavirus pandemic, no longer has any Covid-19 patients in hospital after the last 12 were discharged on Sunday.

Their release ended a four-month nightmare for the city, where the disease was first detected in December. The number of patients being treated for Covid-19, the disease caused by a new coronavirus, peaked on February 18 at 38,020 – nearly 10,000 of whom were in severe or critical condition.

“With the joint efforts of Wuhan and the national medical aid given to Hubei province, all cases of Covid-19 in Wuhan were cleared as of April 26,” Mi Feng, a spokesman for the National Health Commission said on Sunday afternoon.

The announcement came only one day after the city discharged the last patient who had been in a severe condition. That patient also was the last severe case in Hubei province.

The last patient discharged from Wuhan Chest Hospital, a 77-year-old man surnamed Ding, twice tested negative for Sars-CoV-2, the virus that causes Covid-19, and was released at noon on Sunday.

“I missed my family so much!” Ding told Changjing Daily.

Another unidentified patient exclaimed as he left the hospital: “The air outside is so fresh! The weather is so good today!”

Wuhan faced a long journey to bring its patient count down to zero.

The city of 11 million, the capital of Hubei province and a transport hub for central China, was put under a strict lockdown on January 23 that barred anyone from entering or exiting the city without official approval for 76 days until it was officially lifted on April 8.

Coronavirus: Wuhan, Los Angeles officials discuss getting back to work after lockdown

22 Apr 2020

Residents were ordered to stay in their apartments as the city stopped public transport and banned private cars from city streets. As the epidemic worsened, more than 42,000 medical staff from across the country were sent to the city and to Hubei province to help ease the burden on the local health care system.

Wuhan was the hardest hit city in China, accounting for 50,333 of the 82,827 locally transmitted Covid-19 cases recorded in China. More than 4,600 died in the country from the disease.

On March 13, the city reported for the first time that there were no new suspected cases of the infection, and five days later there were no confirmed cases.

The number of discharged patients bottomed out at 39.1 per cent at the end of February, gradually climbing to 92.2 per cent by last Thursday.

“Having the patients in the hospital cleared on April 26 marks a major achievement for the city’s Covid-19 treatment,” the Wuhan Health Commission said in a statement.

However, having no severe cases in hospital does not mean all the discharged patients will require no further treatment as they may still need further care.

“Clearing all the severe cases marks a decisive victory for the battle to safeguard Wuhan,” health minister Ma Xiaowei told state broadcaster China Central Television on Saturday.

“Some patients who have other conditions are being treated in specialised hospitals. It has been properly arranged.”

Coronavirus: Chinese writer hit by nationalist backlash over diary about Wuhan lockdown

18 Apr 2020

Ten patients aged between 42 and 85 who have been declared coronavirus-free are still in intensive care at the city’s Tongji Hospital where they are being treated for kidney problems and other complications arising from Covid-19. Some still need ventilators to help them breathe.

These 10 patients are under 24-hour care, with 190 nurses on four-hour rotations. There are other patients in a similar condition in two other hospitals in Wuhan, according to the Hubei Broadcasting and Television Network.

However, the discharge of the last batch of Covid-19 patients does not mean that the risk of infection is gone.

The city reported 20 new cases of people testing positive for Sars-CoV-2, the official name for the coronavirus that causes the disease, but who do not yet show symptoms.

There are 535 such carriers under medical observation. Past data shows some of these asymptomatic carriers will develop symptoms, and so will be counted as Covid-19 patients under China’s diagnosis and treatment plan.

China’s coronavirus infection curve has flattened out with about 694 imported cases of Covid-19 on top of about 800 locally transmitted ones now under treatment.

The national health commission spokesman warned that people still need to be on high alert as the virus is continuing to spread around the globe, with no sign yet of a slowdown.

“[We] must not drop our guard and loosen up. [We] must discover cases in time and deal with them quickly,” Mi said, citing the continued pressure from cases imported by people returning from overseas.

“The next step will be to implement the requirements of the central government and continue to guard against imported cases and a rebound of domestic transmitted cases.”

Source: SCMP

25/04/2020

Coronavirus: China’s belt and road plan may take a year to recover from slower trade, falling investment

  • But trade with partner countries might not be as badly affected as with countries elsewhere in the world, observers say
  • China’s trade with belt and road countries rose by 3.2 per cent in the January-March period, but second-quarter results will depend on how well they manage to contain the pathogen, academic says
China’s investment in foreign infrastructure as part of its Belt and Road Initiative has been curtailed because of the coronavirus pandemic. Photo: Xinhua
China’s investment in foreign infrastructure as part of its Belt and Road Initiative has been curtailed because of the coronavirus pandemic. Photo: Xinhua
The coronavirus pandemic is set to cause a slump in Chinese investment in its signature

Belt and Road Initiative

and a dip in trade with partner countries that could take a year to overcome, analysts say.

But the impact of the health crisis on China’s economic relations with nations involved in the ambitious infrastructure development programme might not be as great as on those that are not.
China’s total foreign trade in the first quarter of 2020 fell by 6.4 per cent year on year, according to official figures from Beijing.
Trade with the United States, Europe and Japan all dropped in the period, by 18.3, 10.4 and 8.1 per cent, respectively, the commerce ministry said.
By comparison, China’s trade with belt and road countries increased by 3.2 per cent in the first quarter, although the growth figure was lower than the 10.8 per cent reported for the whole of 2019.
China’s trade with 56 belt and road countries – located across Africa, Asia, Europe and South America – accounts for about 30 per cent of its total annual volume, according to the commerce ministry.

Despite the first-quarter growth, Tong Jiadong, a professor of international trade at Nankai University in Tianjin, said he expected China’s trade with belt and road countries to fall by between 2 and 5 per cent this year.

His predictions are less gloomy than the 13 to 32 per cent contraction in global trade forecast for this year by the World Trade Organisation.

“A drop in [China’s total] first-quarter trade was inevitable but it slowly started to recover as it resumed production, especially with Southeast Asian, Eastern European and Arab countries,” Tong said.

“The second quarter will really depend on how the epidemic is contained in belt and road countries.”

Nick Marro, Hong Kong-based head of global trade at the Economist Intelligence Unit, said he expected China’s total overseas direct investment to fall by about 30 per cent this year, which would be bad news for the belt and road plan.

“This will derive from a combination of growing domestic stress in China, enhanced regulatory scrutiny over Chinese investment in major international markets, and weakened global economic prospects that will naturally depress investment demand,” he said.

The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed, while infrastructure projects in Bangladesh, including the Payra coal-fired power plant, have been put on hold.

The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed. Photo: AFP
The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed. Photo: AFP
Marro said the reduction of capital and labour from China might complicate other projects for key belt and road partner, like Pakistan, which is home to infrastructure projects worth tens of billions of US dollars, and funded and built in large part by China.

“Pakistan looks concerning, particularly in terms of how we’ve assessed its sovereign and currency risk,” Marro said.

“Public debt is high compared to other emerging markets, while the coronavirus will push the budget deficit to expand to 10 per cent of GDP [gross domestic product] this year.”

Last week, Pakistan asked China for a 10-year extension to the repayment period on US$30 billion worth of loans used to fund the development of infrastructure projects, according to a report by local newspaper Dawn.

China’s overseas investment has been falling steadily from its peak in 2016, mostly as a result of Beijing’s curbs on capital outflows.

Last year, the direct investment by Chinese companies and organisations other than banks in belt and road countries fell 3.8 per cent from 2018 to US$15 billion, with most of the money going to South and Southeast Asian countries, including Singapore, Vietnam, Indonesia and Pakistan.

Tong said the pandemic had made Chinese investors nervous about putting their money in countries where disease control measures were becoming increasingly stringent, but added that the pause in activity would give all parties time to regroup.

“Investment in the second quarter will decline and allow time for the questions to be answered,” he said.

“Past experience along the belt and road has taught many lessons to both China and its partners, and forced them to think calmly about their own interests. The epidemic provides both parties with a good time for this.”

Dr Frans-Paul van der Putten, a senior research fellow at Clingendael Institute in the Netherlands, said China’s post-pandemic strategy for the belt and road in Europe
might include a shift away from investing in high-profile infrastructure projects like ports and airports.
Investors might instead cooperate with transport and logistics providers rather than invest directly, he said.
“Even though in the coming years the amount of money China loans and invests abroad may be lower than in the peak years around 2015-16, I expect it to maintain the belt and road plan as its overall strategic framework for its foreign economic relations,” he said.
Source: SCMP
20/04/2020

Euro zone trade surplus grows, with decline in China imports

BRUSSELS (Reuters) – The euro zone’s trade surplus with the rest of the world grew in February, with a decline in imports from China as well as sharply lower energy needs because of mild winter weather.

The unadjusted goods trade surplus grew to 23.0 billion euros ($25.1 billion) in February, compared with 18.5 billion euros a year earlier. Exports rose by 1.6%, while imports fell by 1.0%.

For China, which already had widespread coronavirus restrictions in place in February, exports from the European Union as a whole were slightly lower than in February 2019. However, imports were down by 8.1%, according to data on Eurostat’s website.

Energy imports as a whole also declined by 9.6% in February, when comparing Jan-Feb data issued on Monday and January data from a month ago. That translated into 10.1% lower imports from Russia and 5.9% less from Norway.

The trade surplus with the United States, by contrast, grew by 21% in the month as exports increased and imports declined. The persistent surplus in goods has been a source of transatlantic tension.

On a seasonally adjusted basis the euro zone trade surplus also rose to 25.8 billion euros in February from 18.2 billion euros in January. Exports were 1.8% higher month-on-month and imports 2.3% lower.

Source: Reuters

20/04/2020

Coronavirus: Chinese Super League team return home to Wuhan after 104 days abroad

Fans greated the team as they arrived in Wuhan via train
Fans greeted the team as they arrived in Wuhan via train

Chinese Super League team Wuhan Zall made an emotional homecoming after being unable to return for three months because of the coronavirus pandemic.

Players had initially stayed at their winter training camp in Spain when the virus peaked in Wuhan in January.

After a prolonged transit in Germany, they landed in Shenzhen on 16 March and underwent three weeks’ quarantine.

They were greeted by fans when they arrived in Wuhan by train on Saturday evening.

“After more than three months of wandering, the homesick Wuhan Zall team members finally set foot in their hometown,” the team said on the Twitter-like Weibo.

Fans, dressed in the team’s orange colours, sang and gave the players flowers as they arrived home for the first time in 104 days.

Players will now spend time with their families before training resumes.

The team had first left Wuhan in early January to start preparing for the Super League season.

By the time they arrived in Malaga, residents in Wuhan were living under strict lockdown measures, and there were no planes or trains in or out of the capital.

Coach Jose Gonzalez told Spanish media at the time that the players “are not walking viruses, they are athletes” and asked for them not to be demonised.

The Chinese Super League was set to begin on 22 February but it has been postponed.

Wuhan raised its official Covid-19 death toll by 50% on Sunday, adding 1,290 fatalities.

Source: The BBC

18/04/2020

Coronavirus: China outbreak city Wuhan raises death toll by 50%

Medical staff from Jilin Province (in red) hug nurses from Wuhan after the Covid-19 lockdown was lifted, 8 April 2020Image copyright GETTY IMAGES
Image 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.

The virus has had a huge impact on the Chinese economy, which shrank for the first time in decades in the first quarter of the year.

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.

Banner image reading 'more about coronavirus'
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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.


Analysis box by Stephen McDonell, China correspondent

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.

French President Emmanuel Macron has also questioned China’s handling of the coronavirus outbreak, saying it was “naive” to suggest the country had dealt better with the crisis, adding things “happened that we don’t know about”.

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.

WHO Director General Dr Tedros Adhanom Ghebreyesus has hailed China for the “speed with which [it] detected the outbreak” and its “commitment to transparency”.

Source: The BBC

17/04/2020

China’s virus-hit economy shrinks for first time in decades

Train passengers arrive from WuhanImage copyright EPA

China’s economy shrank for the first time in decades in the first quarter of the year, as the virus forced factories and businesses to close.

The world’s second biggest economy contracted 6.8% according to official data released on Friday.

The financial toll the coronavirus is having on the Chinese economy will be a huge concern to other countries.

China is an economic powerhouse as a major consumer and producer of goods and services.

This is the first time China has seen its economy shrink in the first three months of the year since it started recording quarterly figures in 1992.

“The GDP contraction in January-March will translate into permanent income losses, reflected in bankruptcies across small companies and job losses,” said Yue Su at the Economist Intelligence Unit.

Last year, China saw healthy economic growth of 6.4% in the first quarter, a period when it was locked in a trade war with the US.

In the last two decades, China has seen average economic growth of around 9% a year, although experts have regularly questioned the accuracy of its economic data.

Its economy had ground to a halt during the first three months of the year as it introduced large-scale shutdowns and quarantines to prevent the virus spread in late January.

As a result, economists had expected bleak figures, but the official data comes in slightly worse than expected.

Among other key figures released in Friday’s report:

  • Factory output was down 1.1% for March as China slowly starts manufacturing again.
  • Retail sales plummeted 15.8% last month as many of shoppers stayed at home.
  • Unemployment hit 5.9% in March, slightly better than February’s all-time high of 6.2%.
Presentational grey line

Analysis: A 6% expansion wiped out

Robin Brant, BBC News, Shanghai

The huge decline shows the profound impact that the virus outbreak, and the government’s draconian reaction to it, had on the world’s second largest economy. It wipes out the 6% expansion in China’s economy recorded in the last set of figures at the end of last year.

Beijing has signalled a significant economic stimulus is on the way as it tries to stabilise its economy and recover. Earlier this week the official mouthpiece of the ruling Communist Party, the People’s Daily, reported it would “expand domestic demand”.

But the slowdown in the rest of the global economy presents a significant problem as exports still play a major role in China’s economy. If it comes this will not be a quick recovery.

On Thursday the International Monetary Fund forecast China’s economy would avoid a recession but grow by just 1.2% this year. Job figures released recently showed the official government unemployment figure had risen sharply, with the number working in companies linked to export trade falling the most.

Presentational grey line

China has unveiled a range of financial support measures to cushion the impact of the slowdown, but not on the same scale as other major economies.

“We don’t expect large stimulus, given that that remains unpopular in Beijing. Instead, we think policymakers will accept low growth this year, given the prospects for a better 2021,” said Louis Kuijs, an analyst with Oxford Economics.

Since March, China has slowly started letting factories resume production and letting businesses reopen, but this is a gradual process to return to pre-lockdown levels.

Media caption Why does China’s economy matter to you?

China relies heavily on its factories and manufacturing plants for economic growth, and has been dubbed “the world’s factory”.

Stock markets in the region showed mixed reaction to the Chinese economic data, with China’s benchmark Shanghai Composite index up 0.9%.

Japan’s Nikkei 225 jumped 2.5% on Friday, although this was largely due to gains on Wall Street after US President Donald Trump unveiled plans to ease lockdowns.

Source: The BBC

15/04/2020

Coronavirus: Food delivery driver paying back doctors who saved him

with a seven-month pregnant wife at home, Mr Li is looking forward to happier times.Image copyright LI YAN

“Doctors and nurses are people who saved me from cancer and gave me strength in the darkest time. I need to return the favour,” says Li Yan, a food delivery rider based in Beijing.

Mr Li was diagnosed with lymph cancer in 2003, when he was just 17 years old. He recovered from the disease and has been full of gratitude ever since for the medical workers who nursed him back to health. With China in a national lockdown, food delivery firms found themselves in hot demand providing meals for residents stuck at home to prevent the spread of the coronavirus.

As a delivery rider for Meituan, one of China’s biggest food delivery firms, Mr Li saw an opportunity to repay the medical professionals he admires by providing them with food and drinks as they worked tirelessly on patients across the city. “Given my past experience, I felt I needed to do something for them in return during the virus outbreak,” he adds.

Beijing is a city of 21 million residents, and Mr Li covers its Tongzhou district, where there are a handful of hospitals with fever clinics, one of which is a designated hospital for Covid-19 treatment. “Many might have concerns delivering for the hospital, but I’ve chosen to deliver for them more often. I just think of the local residents and medical workers who need us. I can’t leave them being hungry. It’s not for money.”

Before the outbreak in China, he delivered more than 50 orders on an average day. But during the first ten days after the coronavirus outbreak in late January, the number of orders dropped to less than 20, as some restaurants were closed. The outbreak also coincided with the Chinese New Year period which is normally a low season.

“By mid-February when the situation was brought more under control, and people’s concerns and fears gradually began to ease, orders started to be restored. I can deliver over 40 orders a day now.”

Meituan brought in a contactless delivery option which allowed food to be dropped off at designated points to avoid contact between customers and riders. "Image copyright LI YAN

During this time, Meituan brought in a contactless delivery option which allowed food to be dropped off at designated points to avoid contact between customers and riders. “When I called customers to explain, some initially didn’t understand and wanted to cancel the order. But gradually people grew more understanding and began to welcome the contactless approach.”

Empty streets

China was in lockdown for more than two months, although restrictions are now beginning to be lifted. It will still take time before a sense of normalcy returns.

“I remember when the coronavirus first broke out, it was hazy for a few days in Beijing. Streets were empty and stores were closed. An ambulance or a delivery rider occasionally drove by. It felt like I was living in a different world.”

Mr Li says restaurants have started to re-open and people have begun coming back to work in the office since mid-February. Orders are still lower than normal but are improving.

“I miss the hustling Beijing which used to filled with traffic, the days when I could smell car exhaust when I stop at crossroads, the times when I had to walk all the way up to the 6th floor to deliver food, and even times when I was late for a delivery.”

Mr Li has a new routine now which involves lots of disinfecting and temperature checks.Image copyright LI YAN

When the virus first broke out, face masks and alcohol disinfectant were the most ordered items along with supermarket groceries. “Grains, rice, cooking oil, vegetables, fruits, and solid, packaged food that lasts long. Orders often came in big sizes and transaction prices at around 200 yuan [£23; $28] to 300 yuan on one order.”

Being a food delivery rider, Mr Li feels he can not only give back to the medical community but to the city’s vulnerable too.

“I once received an order that came with a note saying the customer is a 82-year-old who lives alone and couldn’t get downstairs to pick up the food so the rider needs to enter the residential community and deliver food to the door. I had to spend some time communicating with security and finally was allowed in. The door was open when I arrived, and I put the bowl of wontons [a type of dumpling] on the table.”

Tips have increased from happy customers during the pandemic as a result. “Many more send me thank-you notes in the Meituan app and tell me to take care.”

Being a food delivery rider, Mr Li feels he can not only give back to the medical community but to the city's vulnerable too.Image copyright LI YAN

Keeping clean

Mr Li has a new routine now which involves lots of disinfecting and temperature checks. “I get my temperature checked dozens of times everyday now, before entering shopping malls, at restaurants, and returning home to the residential compound I live in. I also bring with me disinfectant sprays, a towel in my scooter and use disposable gloves when delivering to areas with reported confirmed cases.”

While he’s providing a vital service, is Mr Li worried about the risk of infection? “I did have worries when the virus spread and was at its worst time here but I feel like I’ve already been there, given what I went through in the fight against cancer.

“I’ve learnt to take things easy, look at the bright side of things and always seek strength in a dark time. As long as I take sufficient precautions, masks, gloves, disinfectants and everything, and follow advice from disease control experts, I think the possibility of getting the virus is pretty low.”

And with a seven-month pregnant wife at home, Mr Li is looking forward to happier times.

Source: The BBC

13/04/2020

Coronavirus: China’s export showroom Yiwu grinds to a near halt as global pandemic restrictions bite

  • China’s famed Yiwu International Trade Market, a barometer for the health of the nation’s exports, has been hammered by the economic fallout from Covid-19
  • Export orders have dried up amid sweeping containment measures in the US and Europe and restrictions on foreigners entering China have shut out international buyers
The coronavirus pandemic has severely dented wholesale trade at the Yiwu International Trade Market in China. Photo: SCMP
The coronavirus pandemic has severely dented wholesale trade at the Yiwu International Trade Market in China. Photo: SCMP

The Yiwu International Trade Market has always been renowned as a window into the vitality of Chinese manufacturing, crammed with stalls showcasing everything from flashlights to machine parts.

But today, as the coronavirus pandemic rips through the global economy, it offers a strikingly different picture – the dismal effect Covid-19 is having on the nation’s exports.

The usually bustling wholesale market, home to some 70,000 vendors supplying 1,700 different types of manufactured goods, is a shadow of its former self.

Only a handful of foreign buyers traipse through aisles of the sprawling 4-million-square-metre (43 million square feet) complex, while store owners – with no customers to tend to – sit hunched over their phones or talking in small groups.

A foreign buyer visits a stall selling face masks. Photo: Ren Wei
A foreign buyer visits a stall selling face masks. Photo: Ren Wei
“We try to convince ourselves that the deep slump will not last long,” said the owner of Wetell Razor, Tong Ciying, at her empty store. “We cannot let complacency creep in, although the coronavirus has sharply hampered exports of Chinese products.”
Chinese exports plunged by 17.2 per cent in January and February combined compared to the same period a year earlier, according to the General Administration of Customs. The figure was a sharp drop from 7.9 per cent growth in December.
After riding out a supply shock that shut down most of its factories, China is now facing a second wave demand shock, as overseas export orders vanish amid sweeping containment measures to contain the outbreak around the globe.

Nowhere is that clearer to see than in Yiwu. The city of 1.2 million, which lies in the prosperous coastal province of Zhejiang, was catapulted into the international limelight as a showroom for Chinese manufacturing when the country joined the World Trade Organisation in 2001.

Coronavirus: Is the gig economy dead, and should the self-employed worry?
Before the pandemic, thousands of foreign buyers would flock to the mammoth trade market each day to source all manner of products before sending them home.

But the outbreak, which has claimed the lives of more than 113,000 people and infected more than 1.9 million around the world, is proving a major test for the market and the health of the trade dependent city.

Imports and exports via Yiwu last year were valued at 296.7 billion yuan (US$42.2 billion) – nearly double the city’s economic output.

Businesses, however, are facing a very different picture in 2020. Most traders at the market say they have lost at least half their business amid the pandemic, which was first detected in the central Chinese city of Wuhan last year.

Just take a look at the situation in Yiwu and you will understand the extent of the virus’ effect on China’s trade with foreign countries – Tianqing

“Yiwu is the barometer for China’s exports,” said Jiang Tianqing, the owner of Beauty Shine Industry, a manufacturer of hair brushes. “Just take a look at the situation in Yiwu and you will understand the extent of the virus’ effect on China’s trade with foreign countries.”

Jiang said his business was only just hanging on thanks to a handful of loyal customers placing orders via WeChat.

“I assume it will be a drawn-out battle against the coronavirus,” he said. “We are aware of the fact that developed economies like the US and Europe have been severely affected.”

The Yiwu market reopened on February 18 after a one-month long hiatus following the Lunar New Year holiday and the government’s order to halt commercial activities to contain the spread of the outbreak.

Jiang Tianqing, owner of hair brush company Beauty Shine Industry. Photo: Ren Wei
Jiang Tianqing, owner of hair brush company Beauty Shine Industry. Photo: Ren Wei
But facing the threat of a spike in imported cases, Beijing banned foreigners from entering the country in late March – shutting out potential overseas buyers.
Despite the lack of business, local authorities have urged stall owners to keep their spaces open to display Yiwu’s pro-business attitude, owners said.
“For those bosses who just set up their shops here, it would be a do-or-die moment now since their revenue over the next few months will probably be zero,” said Tong. “I am lucky that my old customers are still making orders for my razors.”
The impact of the coronavirus is just the latest challenge for local merchants, who normally pay 200,000 yuan (US$28,000) per year for a 10-square-metre (108 square feet) stall at the market.
Traders were hard hit by the trade war between China and the United States when the Trump administration imposed a 25 per cent tariff on US$200 billion of Chinese imports last year.
At the time, some Chinese companies agreed to slash their prices to help American buyers digest the additional costs.
“But it is different this time,” said Jiang. “Pricing does not matter. Both buyers and sellers are eager to seal deals, but we are not able to overcome the barriers [to demand caused by the virus].”
Even when businesses can secure orders, it is a struggle to deliver them
.

Ma Jun, a manager with a LED light bulb trading company, said the only export destination for her company’s products was war-torn Yemen because it was the only country with ports still open.

It is a public health crisis that ravages not just our businesses, but the whole world economy – Dong Xin

Dong Xin, an entrepreneur selling stationery products, said he could not ship the few orders he had because “ocean carriers have stopped operations”.
“It is a public health crisis that ravages not just our businesses, but the whole world economy,” he said. “The only thing can do is to pray for an early end to the pandemic.”

Most wholesale traders in the Yiwu market run manufacturing businesses based outside the city, so a sharp fall in sales has a ripple effect on their factories, potentially resulting in massive job cuts.

Workers pack containers at Yiwu Port, an inland port home to dozens of warehouses. Photo: Ren Wei
Workers pack containers at Yiwu Port, an inland port home to dozens of warehouses. Photo: Ren Wei
At Yiwu Port, an inland logistics hub full of warehouses where goods from the factories are unpacked and repacked for shipping abroad, container truck drivers joke about their job prospects.
“We used to commute between Shaoxing and here five times a week, and now it is down to twice a week,” said a driver surnamed Wang, describing the trip from his home to the shipping port, just over 100km away.
“At the end of the day, we may not be infected with the coronavirus, but our jobs will still be part of the cost of the fight against it.”
Source: SCMP
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