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’.
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Image caption Passengers gathered outside Secundarabad station in Andhra Pradesh state
India has partially restored train services amid reports of chaos and overcrowding at some stations.
At least 145,000 people will travel in trains on Monday as the country starts to reopen after a prolonged lockdown.
Two hundred trains will now start operations – up from the existing 30 that are currently running.
But maintaining social distancing and cleanliness is proving to be a difficult task as huge crowds gathered outside some stations.
India’s mammoth railway network usually carries 25 million passengers every day.
The ministry of home affairs has issued specific guidelines for the smooth operation of train services. They say that all passengers will have to be screened, social distancing must be followed at the station and in trains and only passengers who have confirmed tickets will be allowed to travel.
Image caption Police struggled to enforce social distancing due to large crowds
But some stations reported chaotic scenes as officials struggled to enforce these guidelines. BBC Telugu reported that people were standing much too close to each other at Secunderabad railway station in the southern state of Telangana.
“Railway staff and police didn’t allow passengers to go inside the station until at least one hour before the scheduled departure, citing physical distancing measures. This led to some chaos outside the railway station as a large number of passengers had gathered and there was no physical distance maintained. Police later arrived and organised the queues,” BBC Telugu’s Sharath Behara says.
Reporting from Delhi, BBC Hindi’s Salman Ravi said strict social distancing was being followed when passengers boarded trains, and all of them wore masks.
Image caption Passengers waiting outside the train station in Delhi
“But the same was not observed at ticket booking counters. Many people who did not have tickets also turned up at the station and that caused crowding,” he added.
Train services came to a grinding halt when Prime Minister Narendra Modi announced the lockdown on 24 March to stop the spread of coronavirus.
This left millions of daily-wage workers stranded as they desperately tried to go back to their villages from cities. Many of them decided to walk long distances – in some cases more than 1,000 kilometres.
As pressure and criticism mounted, the government started running special trains to ferry migrants. Some 30 trains restarted on 12 May, since then there has been a consistent demand to reopen more routes.
Getting the train network going again is part of the government’s wider strategy to slowly reopen the economy. Millions have lost jobs and factories are struggling to reopen as demand is likely to be sluggish in the coming weeks.
Image copyright GETTY IMAGESImage caption Within a week of reopening, India has seen a sharp spike in cases
India is roaring – rather than inching – back to life amid a record spike in Covid-19 infections. The BBC’s Aparna Alluri finds out why.
On Saturday, India’s government announced plans to end a national lockdown that began on 25 March.
This was expected – the roads, and even the skies, have been busy for the last 10 days since restrictions started to ease for the first time in two months. Many businesses and workplaces are already open, construction has re-started, markets are crowded and parks are filling up. Soon, hotels, restaurants, malls, places of worship, schools and colleges will also reopen.
But the pandemic continues to rage. When India went into lockdown, it had reported 519 confirmed cases and 10 deaths. Now, its case tally has crossed 173,000, with 4,971 deaths. It added nearly 8,000 new cases on Saturday alone – the latest in a slew of record single-day spikes.
Image copyright GETTY IMAGESImage caption Fast food chains like McDonald’s have begun reopening outlets in parts of India.
So, why the rush to reopen?
The lockdown is simply unaffordable
“It’s certainly time to lift the lockdown,” says Gautam Menon, a professor and researcher on models of infectious diseases.
“Beyond a point, it’s hard to sustain a lockdown that has gone on for so long – economically, socially and psychologically.”
From day one, India’s lockdown came at a huge cost, especially since so many of its people live on a daily wage or close to it. It put food supply chains at risk, cost millions their livelihood, and throttled every kind of business – from car manufacturers to high-end fashion to the corner shop selling tobacco. As the economy sputtered and unemployment rose, India’s growth forecast tumbled to a 30-year-low.
Raghuram Rajan, an economist and former central bank governor, said at the end of April that the country needed to open up quickly, and any further lockdowns would be “devastating”.
The opinion is shared by global consultant Mckinsey, whose report from earlier this month said India’s economy must be “managed alongside persistent infection risks”.
Image copyright GETTY IMAGESImage caption As restrictions ease, Indians are slowly getting used to the new normal
“The original purpose of the lockdowns was to delay the spike so we can put health services and systems in place, so we are able handle the spike [when it comes],” says Dr N Devadasan, a public health expert. “That objective, to a large extent, has been met.”
In the last two months, India has turned stadia, schools and even train coaches into quarantine centres, added and expanded Covid-19 wards in hospitals, and ramped up testing as well as production of protective gear. While grave challenges remain and shortages persist, the consensus seems to be that the government has bought as much time as possible.
“We have used the lockdown period to prepare ourselves… Now is the time to revive the economy,” Delhi Chief Minister Arvind Kejriwal said last week.
The silver lining
For weeks, India’s relatively low Covid-19 numbers baffled experts everywhere. Despite the dense population, disease burden and underfunded public hospitals, there was no deluge of infections or fatalities. Low testing rates explain the former, but not the latter.
In fact, India made global headlines not for its caseload but for its botched handling of the lockdown – millions of informal workers, largely migrants, were left jobless overnight. Scared and unsure, many tried to return home, often desperate enough to walk, cycle or hitchhike across hundreds of kilometres.
Perhaps the choice – between a virus that didn’t appear to be wreaking havoc yet, and a lockdown that certainly was – seemed obvious to the government.
But that is changing quickly as cases shoot up. “I suspect we will keep finding more and more cases, but they will mostly be asymptomatic or will have mild symptoms,” Dr Devadasan says.
The hope – which is also encouraging the government to reopen – is that most of India’s undetected infections are not severe enough to require hospitalisation. And so far, except in Mumbai city, there has been no dearth of hospital beds.
The government, for instance, has been touting India’s mortality rate as a silver lining – at nearly 3%, it’s among the lowest in the world.
But some are unconvinced by that. Dr Jacob John, a prominent virologist, says India has never had, and still doesn’t have, a robust system for recording deaths – in his view, the government is certainly missing Covid-19 deaths because they have no way of knowing of every fatality.
Image copyright GETTY IMAGESImage caption Indians are venturing out again but it’s unclear how many of them are asymptomatic.
And, he says, “what we must aim for is flattening the mortality curve, not necessarily the epidemic curve”.
Dr John, like several other experts, also predicts a peak in July or August, and believes the country is reopening so quickly because the “government realised the futility of such leaky lockdowns”.
A shift in strategy
So is the government gearing up for another lockdown when the peak comes?
While Dr Menon believes the lockdown was well-timed, he says it was too focused on cases coming from abroad.
“There was a hope that by controlling that, we could prevent epidemic spread, but how effective was our screening [at airports]?”
Now, he adds, is the time for “localised lockdowns”.
Media caption Coronavirus: Death and despair for migrants on Indian roads
The federal government has left it to states to decide where, how and to what extent to lift the lockdown as the virus’ progression varies wildly across India.
Maharashtra alone accounts for more than a third of India’s active cases. Add Tamil Nadu, Gujarat and Delhi, and that makes up 67% of the national total.
But other states – such as Bihar – are already seeing a sharp uptick as migrant workers return home.
“Initially, most of your cases were in the cities,” Dr Devadasan says. “But we kept the migrant workers in cities and didn’t allow them to go home. Now, we are sending them back. We have facilitated transporting the virus from urban areas to rural areas.”
While the government has said how many infections have been avoided – up to 300,000 – and lives saved – up to 71,000 – by the lockdown, there is no indication of what lies ahead.
There is only advice: The day the government began to ease restrictions, Mr Kejriwal tweeted, urging people to “follow discipline and control the coronavirus disease” as it was their “responsibility”.
Image copyright GETTY IMAGESImage caption Social distancing will prove to be India’s biggest post-lockdown challenge
Because the alternative – of curfews and constant policing – is unsustainable.
“My worry is more the circumstances of people – it’s not as though they have an option to practise social distancing,” Dr Menon says.
And they don’t – not in joint family homes or one-room hovels packed together in slums, not in crowded markets or busy streets where jostling is second nature, or in temples, mosques, weddings or religious processions where more is always merrier.
The overwhelming message is that the virus is here to stay, and we have to learn to live with it – and the only way to do that, it appears, is to let people live with it.
BEIJING (Reuters) – China announced on Sunday two new confirmed cases of coronavirus and four new asymptomatic cases, including one person without symptoms of COVID-19 on a chartered flight from Germany.
The two confirmed cases in Shandong province on Saturday compared with four cases the day before, data from the country’s health authority showed.
The National Health Commission (NHC) confirmed three new asymptomatic cases on Saturday.
On Sunday, the Chinese city of Tianjin confirmed one asymptomatic person, a passenger arriving from Frankfurt on a chartered Lufthansa flight, LH342, to Tianjin. This case was discovered between midnight and 6 a.m. local time on Sunday, the city’s daily statements show.
These charter flights are part of an accelerated entry procedure offered by Beijing as China and Germany seek to reignite their economies after months of lockdown. The flight to Tianjin carried about 200 passengers, mostly German business executives.
Lufthansa has another charter flight scheduled for Shanghai on Wednesday.
A 34-year-old German engineer tested positive for the coronavirus after arriving in Tianjin but he does not have any symptoms, the Tianjin government said on its official social media platform Weibo.
The asymptomatic patient has been transferred to a local hospital to be placed under medical observation, the Tianjin government said, adding that the whole process was a “closed loop”, meaning posing no great risk to the Chinese public.
Image copyright GETTY IMAGESImage caption India has more than 150,000 reported infections
On the face of it, things may not look bad.
Since the first case of coronavirus at the end of January, India has reported more than 150,000 Covid-19 infections. More than 4,000 people have died of the infection.
To put this in some context, as of 22 May, India’s testing positivity rate was around 4%, the death rate from the infection around 3% and the doubling rate of infection – or the amount of time it takes for the number of coronavirus cases to double – was 13 days. The recovery rate of infected patients was around 40%.
All this is markedly lower than in the countries badly hit by the pandemic.
Like elsewhere in the world, there are hotspots and clusters of infection.
More than 80% of the active cases are in five states – Maharashtra, Tamil Nadu, Delhi, Gujarat and Madhya Pradesh – and more than 60% of the cases in five cities, including Mumbai, Delhi and Ahmedabad, according to official data.
More than half of people who have died of the disease have been aged 60 and older and many have underlying conditions, hewing to the international data about elderly people being more vulnerable to the disease.
The more than two-month-long grinding lockdown, official data suggests, has prevented the loss of between 37,000 and 78,000 lives. A paper published in Harvard Data Science Review appears to support that – it shows an eight-week lockdown can prevent about two million cases and, at a 3% fatality rate, prevent some 60,000 deaths.
“Infection has remained limited to certain areas. This also gives us confidence to open up other areas. It is so far an urban disease,” says VK Paul, who heads the medical emergency management plan on Covid-19.
This is where such claims enter uncertain territory.
Image copyright GETTY IMAGESImage caption India has conducted some 180,000 tests so far
Infections are rising sharply, up from 536 cases on 25 March when the first phase of the world’s harshest lockdown was imposed. The growth of infections is outpacing growth in testing – tests have doubled since April but cases have leapt fourfold.
Epidemiologists say the increase in reported infections is possibly because of increased testing. India has been testing up to 100,000 samples a day in the past week. Testing criteria has been expanded to include asymptomatic contacts of positive patients.
Yet, India’s testing remains one of the lowest in the world per head of population – 2,198 tests per million people.
The bungled lockdown at the end of March triggered an exodus of millions of informal workers who lost their jobs in the cities and began returning home in droves, first on foot and then by train. Some four million workers have travelled by rail from cities to their villages in more than half a dozen states in the past three weeks.
There is mounting evidence that this has already led to the spread of infection from the cities to the villages. And with the messy easing of the lockdown earlier this month, there are growing fears of infections spreading further in the cities.
Rising infections and a still-low fatality rate possibly points to milder infection in a younger population and a large number of asymptomatic cases. The focus, says Amitabh Kant, CEO of the government think-tank NITI Aayog, should be “bringing down fatalities and improving the recovery rate”.
But if the infection rate continues to grow, “things are going to get pretty grim in a few weeks time,” a leading virologist told me.
Image copyright GETTY IMAGESImage caption Millions of workers have fled the cities and returned to their villages after the lockdown
Doctors in the capital, Delhi, and the western city of Mumbai tell me they are already seeing a steady surge in Covid-19 admissions and worry about a looming shortage of hospital beds, including in critical care.
When the infection peaks in July, as is expected, a spike in infections could easily lead to many avoidable deaths as hospitals run out of beds for, or delay treatment to, infected patients who need timely oxygen support and clinical care to recover.
“That is the real worry. A critical-care bed needs an oxygen line, a ventilator, doctors, nursing staff. Everything will be under pressure,” Dr Ravi Dosi, who is heading a Covid-19 ward at a hospital in Indore, told me. His 50-bed ICU is already full of patients battling the infection.
With the lockdown easing, doctors are feeling jittery. “It’s a tactical nightmare because some people have begun going to work but there is a lot of fear”, says Dr Dosi.
“One co-worker sneezed in the office and 10-15 of his colleagues panicked and came to the hospital and demanded they get tested. These are the pressures that are building up.”
One reason for the confusion is the lack of – or the opacity of – adequate data on the pandemic to help frame a strategic and granular response.
Most experts say a one-size-fits-all strategy to contain the pandemic and impose and lift lockdowns will not work in India where different states will see infection peaks at different times. The reported infection rate – the number of infections for every 100 tests – in Maharashtra state, for example, is three times the national average.
“The infection is not spreading uniformly. India will see staggered waves,” a leading virologist, who insisted on anonymity, told me.
The lack of data means questions abound.
What about some 3,000 cases, which are not being assigned to any state because these people were found infected in places where they don’t live? (To put this into context, nine states in India have more than 3,000 cases.) How many of these cases have died or recovered?
Also, it is not clear whether the current data – sparse, and sporadic – is sufficient to map the future trajectory of the disease.
There is, for example, no robust estimate of carriers of the virus who have no symptoms – last month a senior government scientist said at least “80 out of every 100 Covid-19 patients may be asymptomatic or could be showing mild symptoms”.
Image copyright GETTY IMAGESImage caption More than 4,000 people have died of Covid-19 in India
If that is indeed true, then India’s fatality rate is bound to be lower. Atanu Biswas, a professor of statistics, says the predicted trajectory could change “with the huge inclusion of asymptomatic cases”. But, in the absence of data, India cannot be sure.
Also, epidemiologists say, measures like the doubling time of the infections and the reproduction number or R0 have their limitations. R0, or simply the R value, is a way of rating a disease’s ability to spread. The new coronavirus, Sars-CoV-2, has a reproduction number of about three, but estimates vary.
“These measures are good when we are in the middle of a pandemic, less robust with fewer cases. You do need forecasting models for at least a month’s projection to anticipate healthcare needs. We should always evaluate an aggregate of evidence, not just one measure, but a cascade of measures,” Bhramar Mukherjee, a professor of biostatistics and epidemiology at the University of Michigan, told me.
Others say even calculating the number of recorded infections every day is “not always a good indicator of how an infection is spreading”.
A better option would be to look at the number of new tests and new cases every day that would provide a “degree of standardisation”, K Srinath Reddy, president of the Public Health Foundation of India, told me.
Likewise, he believes, a measure of how many Covid-19 deaths have occurred compared with the size of a country’s population – the numbers of deaths per million people – is a better indicator of the fatality rate. Reason: the denominator – the country’s population – remains stable.
In the absence of robust and expansive data, India appears to be struggling to predict the future trajectory of the infection.
It is not clear yet how many deaths are not being reported, although there is no evidence of large scale “hidden deaths”.
Image copyright GETTY IMAGESImage caption A Covid-19 isolation ward in India
Epidemiologists say they would like to see clearer data on deaths due to pneumonia and influenza-like illnesses at this time over the past few years to quantify excess deaths and help with accurate reporting of Covid-19 deaths.
They would also like to see what racial disparities in infections and deaths there are to help improve containment in specific community areas. (In Louisiana, for example, African Americans accounted for 70% of Covid-19 deaths, while comprising 33% of the population.)
What is clear, say epidemiologists, is that India is as yet unable to get a grip on the extent of the spread of infection because of the still limited testing.
“We need reliable forecasting models with projection for the next few weeks for the country and the states,” says Dr Mukherjee.
Epidemiologists say India needs more testing and contact-tracing for both asymptomatic and symptomatic infections, as well as isolation and quarantine.
There’s also the need to test based on the “contact network” to stop super-spreader events – frontline workers, delivery workers, essential workers, practically anybody who interacts with a large group of people.
“We have to learn how to manage and minimise risk in our daily lives as the virus is going to be with us,” says Dr Mukherjee.
Without knowing the true number of infected cases India is, in the words of an epidemiologist, “flying blindfolded”.
That can seriously jeopardise India’s fight against the virus and hobble its response in reviving the broken economy.
Image copyright INDIA MET DEPARTMENTImage caption The storm has worsened over the last 12 hours
Indian officials are on alert after Cyclone Amphan – due to make landfall on the east coast – looks likely to intensify into a “very severe” storm.
The storm is expected to make landfall on Wednesday afternoon and hit West Bengal and Odisha states. Twenty relief teams have been dispatched there.
Prime Minister Narendra Modi is due to chair a high-level meeting to further discuss preparations for the storm.
The cyclone comes amid huge levels of migration from the cities to villages.
Tens of thousands of people are fleeing cities in the wake of a lockdown to curb the spread of coronavirus. Both Odisha and West Bengal are seeing a large number of people return.
There are fears about the impact of the storm on them – many are on foot.
India’s meteorological department has issued a “yellow alert” for the region, advising fishermen not to “venture into the south Bay of Bengal during the next 24 hours, and north Bay of Bengal from 18-20 May”.
A ‘”yellow alert” or “cyclone alert” is issued “of the expected commencement of adverse weather over the coastal areas”.
In a bulletin, the weather department said the storm is likely to move across the north-west Bay of Bengal, and cross West Bengal and Bangladesh coasts from noon local time on 20 May as a “very severe cyclonic storm”.
It also warned of rough seas, with storm surges that could inundate coastal areas.
The head of India’s National Disaster Relief Force (NDRF), SN Pradhan, said they were watching the situation closely and were in touch with state governments.
Last June a powerful cyclone that was expected to make landfall on India’s western coast changed its course, and moved further into the Arabian sea.
Hundreds of thousands of people had already been evacuated as the region braced for Cyclone Vayu, which was classified as “very severe”.
And in May last year India evacuated more than a million people to safety to avoid Cyclone Fani, in which 16 people were killed in Odisha.
In the Bay of Bengal, the cyclone season typically runs from April to December.
Image copyright GETTY IMAGESImage caption Testing everyone in 10 days would be a huge challenge
China is drawing up ambitious plans to test the entire population of Wuhan, the city where the Covid-19 pandemic began.
The announcement came after the emergence of six new coronavirus cases in the city – the first ones since early April.
The authorities had originally promised to test all 11 million people in 10 days.
But it now appears they might be aiming for a less ambitious timetable.
How long will the testing take?
In late April, the Hubei provincial government reported 63,000 people were being tested in Wuhan every day.
And by 10 May, that figure had dropped to just under 40,000.
There are more than 60 testing centres across the city, according to the official Hubei Daily newspaper.
These have a maximum capacity of 100,000 tests a day at most, making it hard to see how a target of testing the entire population in just 10 days could be met.
So the authorities have indicated the tests will not all start and finish within the same 10-day period.
“Some districts [in the city] will start from 12 May, others from 17 May, for example,” the Wuhan Centre for Disease Control said.
“Each district finishes its tests within 10 days from the date it started.”
The authorities say they have now tested more than three million people in the city.
Wuhan University pathogen biology department deputy director Yang Zhanqiu told the Global Times newspaper he believed up to five million Wuhan residents may have already been tested.
The population of the city – originally 11 million – has also fluctuated over time.
The authorities said up to five million people had left the city for the lunar New Year holiday before it was locked down on 23 January.
The lockdown then lasted until 8 April, but it is unclear how many of these residents have now returned.
Should everyone be tested?
Wuhan University’s Yang Zhanqiu said there was no need to test everyone living in neighbourhoods with no reported cases.
Image copyright GETTY IMAGESImage caption There are worries about asymptomatic coronavirus cases
The authorities have said they will begin with people considered most at risk – for example in the older, more densely populated areas, as well as those in key jobs such as healthcare.
Also, people who have been tested in the previous seven days will not need to be tested again.
But Chinese Center for Disease Control and Prevention chief epidemiologist Wu Zunyou told state TV: “The virus could take longer to manifest itself in patients with weak immunity and these people are also prone to ‘on’ and ‘off’ symptoms.”
Yang Zhanqiu adds: “You’ll never know if people were infected after testing negative.”
And US-based Council for Foreign Affairs senior fellow for global health Yanzhong Huang said: “There would still be the possibility of isolated outbreaks in the future, which even large-scale testing will not address.”
Sales in April hit 2.07 million units in the world’s biggest car market, up 4.4 per cent from a year earlier, according to the country’s largest industry association
The number of new energy vehicles (NEVs) sold fell for a tenth straight month to
The global industry has been hit hard by the health crisis, but there is growing optimism of improvement in business in China as the country has largely contained the outbreak and started easing lockdown measures. Photo: AFP
China’s monthly car sales rose for the first time in almost two years in April, industry data showed, as more customers visited showrooms after the economy began to open up and authorities loosened coronavirus-related travel restrictions.
Sales in April hit 2.07 million units in the world’s biggest car market, up 4.4 per cent from a year earlier, according to data from the China Association of Automobile Manufacturers, the country’s largest industry association.
as the pandemic pummelled demand. Monthly sales in China last rose in June 2018.
The number of new energy vehicles (NEVs) sold fell for a tenth straight month to 72,000 units, the data showed. NEVs include battery-powered electric, plug-in hybrid and hydrogen fuel-cell vehicles.
The global industry has been hit hard by the health crisis, but there is growing optimism of improvement in business in China as the country has largely contained the outbreak and started easing lockdown measures.
Volkswagen reported positive China sales in April, while General Motors’ China ventures saw double-digit year-on-year growth last month.
US President Donald Trump has described the coronavirus pandemic as the “worst attack” ever on the United States, pointing the finger at China.
Mr Trump said the outbreak had hit the US harder than the Japanese bombing of Pearl Harbor in World War Two, or the 9/11 attacks two decades ago.
His administration is weighing punitive actions against China over its early handling of the global emergency.
Beijing says the US wants to distract from its own response to the pandemic.
Since emerging in the Chinese city of Wuhan in December, the coronavirus is confirmed to have infected 1.2 million Americans, killing more than 73,000.
Speaking to reporters in the Oval Office of the White House on Wednesday, Mr Trump said: “We went through the worst attack we’ve ever had on our country, this is worst attack we’ve ever had.
“This is worse than Pearl Harbor, this is worse than the World Trade Center. There’s never been an attack like this.
“And it should have never happened. Could’ve been stopped at the source. Could’ve been stopped in China. It should’ve been stopped right at the source. And it wasn’t.”
Media caption Life for asylum seekers in lockdown on the US-Mexico border
Asked later by a reporter if he saw the pandemic as an actual act of war, Mr Trump indicated the outbreak was America’s foe, rather than China.
“I view the invisible enemy [coronavirus] as a war,” he said. “I don’t like how it got here, because it could have been stopped, but no, I view the invisible enemy like a war.”
Media caption US shopping centres re-open: ‘This is the best day ever’
Who else in Trump’s team is criticising China?
The deepening rift between Washington and Beijing was further underscored on Wednesday as Secretary of State Mike Pompeo renewed his rhetoric against China, accusing it of covering up the outbreak.
He stuck by his so far unsubstantiated charge that there is “enormous evidence” the coronavirus hatched in a Chinese laboratory, even while acknowledging there is still uncertainty about its origins.
“Those statements are both true,” America’s top diplomat told the BBC. “We don’t have certainty and there is significant evidence that it came from a lab.”
One of the most trusted US public health experts has said the best evidence indicates the virus was not made in a lab.
Dr Anthony Fauci, a member of Mr Trump’s coronavirus task force, said on Monday the illness appeared to have “evolved in nature and then jumped species”.
Why is the US blaming China?
President Trump faces a tough re-election campaign in November, but the once humming US economy – which had been his main selling point – is currently in a coronavirus-induced coma.
As Mr Trump found his management of the crisis under scrutiny, he began labelling the outbreak “the China virus”, but dropped that term last month days before speaking by phone with Chinese President Xi Jinping.
Both Mr Trump and his likely Democratic challenger, Joe Biden, appear to be fastening on to China’s unpopularity as an election issue, with each accusing the other of being a patsy for America’s primary economic competitor.
As the coronavirus began spreading in the US back in January, Mr Trump signed phase one of a trade deal with China that called a truce in their tariff war. The US president’s hopes of sealing a more comprehensive phase two deal are now in limbo because of the pandemic.
BEIJING (Reuters) – Tang Yue, a 27-year-old teacher from the city of Guilin in southwest China, steam-presses a blue dress and takes dozens of photographs before picking one to clinch her 200th online sale.
For a growing number of Chinese like Tang, hit by job losses, furloughs and salary cuts, the consumer economy has begun to spin in reverse. They are no longer buying – they are selling.
Instead of emerging from the coronavirus epidemic and returning to the shopping habits that helped drive the world’s second-largest economy, many young people are offloading possessions and embracing a new-found ethic for hard times: less is more.
With Tang’s monthly salary of about 7,000 yuan ($988), the self-described shopaholic said she has bought everything from Chanel lipsticks to Apple’s (AAPL.O) latest iPad in the past three years.
But the adrenaline rush that comes with binge-shopping is gone, said Tang, whose wages have been slashed with the suspension of all the classes on tourism management she usually teaches.
“The coronavirus outbreak was a wake-up call,” she said. “When I saw the collapse of so many industries, I realised I had no financial buffer should something unfortunate happen to me.”
There is no guarantee that the nascent minimalist trend will continue once the coronavirus crisis is fully over, but if it does, it could seriously damage China’s consumer sector and hurt thousands of businesses from big retailers to street-corner restaurants, gyms and beauty salons.
To be sure, there are signs that pent-up demand will drive a rush of spending as authorities reopen malls, leisure venues and tourist spots. In South Korea, the first major economy outside of China to be hit by the virus, people thronged malls this weekend to go “revenge shopping” to make up for time lost in lockdown.,
There are some signs that a similar trend will take hold in China, where some upscale malls are starting to get busy, although luxury firm Kering SA (PRTP.PA) – which owns Gucci, Balenciaga and other fashion brands – has said it is hard to predict how or when sales in China might come back.
A recent McKinsey & Co survey showed that between 20% and 30% of respondents in China said they would continue to be cautious, either consuming slightly less or, in a few cases, a lot less.
“The lockdown provided consumers with a lot of time and reasons to reflect and consider what is important to them,” said Mark Tanner, managing director at Shanghai-based research and marketing consultancy China Skinny.
“With much more of their days spent in their homes, consumers also have more time and reasons to sort through things they don’t feel they need – so they’re not living around clutter that is common in many apartments.”
#DITCHYOURSTUFF
Tang made a spreadsheet to keep track of her nearly 200 cosmetic products and hundreds of pieces of clothing. She then marked a few essentials in red that she wanted to keep. In the past two months, she has sold items worth nearly 5,000 yuan on second-hand marketplaces online.
Bargain-hunting online has become a new habit for some Chinese as the stigma that once hung over second-hand goods has begun to fade.
Idle Fish, China’s biggest online site for used goods, hit a record daily transaction volume in March, its parent company Alibaba (BABA.N) told Reuters.
Government researchers predict that transactions for used goods in China may top 1 trillion yuan ($141 billion) this year.
Posts with the hashtag #ditchyourstuff have trended on Chinese social media in recent weeks, garnering more than 140 million views.
Jiang Zhuoyue, 31, who works as an accountant at a traditional Chinese medicine company in Beijing – one of the few industries that may benefit from the health crisis – has also decided to turn to a simpler life.
“I used to shop too much and could be easily lured by discounts,” said Jiang. “One time Sephora offered 20% off for all goods, I then bought a lot of cosmetics because I feel I’m losing money if I don’t.”
Jiang, the mother of a 9-month-old baby, said she recently sold nearly 50 pieces of used clothing as the lockdown gave her the opportunity to clear things out. “It also offered me a chance to rethink what’s essential to me, and the importance of doing financial planning,” she said.
Eleven Li, a 23-year-old flight attendant, said she used to spend her money on all manner of celebrity-endorsed facial masks, snacks, concert tickets and social media activity, but now has no way to fund her spending.
“I just found a new job late last year, then COVID-19 came along, and I haven’t been able to fly once since I joined, and I’ve gotten no salary at all,” said Li, who said she was trying to sell her Kindle.
Some are even selling their pets, as they consider leaving big cities like Beijing and Shanghai where the high cost of living is finally catching up with them.
NO RETURN TO OLD WAYS?
As the coronavirus comes under control in China, the government is gradually releasing cities from lockdown, easing transport restrictions and encouraging consumers to venture back into malls and restaurants by giving out billions-worth of cash vouchers, worth between 10 yuan and 100 yuan.
But many people say they are still worried about job security and potential wage cuts because of the struggling economy. Nationwide retail sales have plunged every month so far this year.
Xu Chi, a Shanghai-based senior strategic analyst with Zhongtai Securities, said some Chinese consumers may prove the ‘21 Day Habit Theory,’ a popular scientific proposition that it only takes that long to establish new habits.
“We believe people’s spending patterns follow the well-known theory, which means most people in China, having been cooped-up at home for more than a month and not having binge-shopped, may break the habit and not return to their old ways,” Xu said.
Jiang said she was determined not to return to her free-spending ways and planned to cook more at home.
“I’ll turn to cheaper goods for some luxury brands,” she said. “I’ll choose Huawei’s smartphone, because (Apple’s) iPhone has too much brand premium.”
Tang, who has recently used 100 yuan of shopping coupons to stock up on food, is going to hold the purse strings even tighter.
“I’ve set my monthly budget at 1,000 yuan,” she said. “Including one – and just one – bottle of bubble tea.”
WUHAN, April 30 (Xinhua) — No asymptomatic cases of COVID-19 in the hard-hit Wuhan turned into confirmed cases in the three weeks after the city lifted its 76-day lockdown, local health authorities said Thursday.
From April 8 to 29, more than 1.03 million nucleic acid tests were conducted in the capital city of central China’s Hubei Province, with 499 asymptomatic cases reported, said the Wuhan municipal health commission.
Meanwhile, none of the 2,250 close contacts of the asymptomatic cases had developed into confirmed or asymptomatic cases, it said.
To avoid crowding and guard against risks of potential infection, the provincial culture and tourism bureau said Thursday that tourists should make bookings before visiting local scenic sites, and tourist flow should be limited to no more than 30 percent of the maximum tourist capacity.
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